STOCK MARKET WATCH, Friday February 23

[ozymandius]

Friday February 23, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 696LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2251 DAYS
WHERE'S OSAMA BIN-LADEN? 1955 DAYS
DAYS SINCE ENRON COLLAPSE = 1915
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 9
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54


U.S. FUTURES & MARKETS INDICATORS
NASDAQ FUTURES-----------------------------S&P FUTURES




AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON February 22, 2007

Dow... 12,686.02 -52.39 (-0.41%)
Nasdaq... 2,524.94 +6.52 (+0.26%)
S&P 500... 1,456.38 -1.25 (-0.09%)
Gold future... 683.00 -1.00 (-0.15%)
30-Year Bond 4.83% +0.04 (+0.86%)
10-Yr Bond... 4.73% +0.04 (+0.81%)






GOLD, EURO, YEN, Loonie and Silver


PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact [e-mail]

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. Today's Market WrapUp

Market Behavior a Formula for Complacency
Corrections Short and Sweet
BY MARTIN GOLDBERG, CMT

The rally in stocks since August has provided traders with every reason to be complacent. While there have been about 9 corrections in the S&P 500 since the summer, all of these corrections have been less than 2.3%. There was only one correction that has lasted more than one week and this was a 2-week 1.9% correction which took place toward the end of last year and beginning of this year. Therefore, it has not been profitable for traders to wait too long to buy dips, because the dips have been short in duration and minor in magnitude. While one can not rule out entirely the possibility of a “new era” where stocks continue to rise indefinitely without a significant pause or even a 3% correction, it would seem plausible that an actual and significant correction may be in the works soon. If and when this occurs, a long standing (since summer) market characteristic will have changed. However, if the market continues to grind higher, it could easily spur a phenomenon known as “capitulation” which will take the form of folks literally panic buying, thereby pushing the S&P 500 into a parabolic final crescendo. Such panic buying would not of course, be based on fundamentals or even rational technical analysis. Perhaps, the more accurate term for the final bullish parabolic move would be “crash-endo.”

Below is the daily chart of the S&P 500 dating back to the beginning of the summer rally. Corrections are shown annotated at their beginning and end, along with the percentage correction (shown in red). Note the relatively low magnitude and short duration of each correction so far. At the present time (Wednesday evening), the S&P 500 is overbought near the top of its Bollinger band. While overbought, the latest rise from 1404 in early January has come on diminishing volume, as shown in the percentage volume oscillator (PVO) and the volume bars below the price. The latest price rise on diminishing volume suggests that another 1 to 2% correction is likely to occur soon. But, if the near term brings an accelerating price rise on increasing volume, a bullish parabolic crescendo is the most likely scenario in my view.

-see chart-

http://www.financialsense.com/Market/wrapup.htm

[ozymandius]

2. Oil prices climb on U.S. inventory drop

VIENNA, Austria - Oil prices rose Friday, adding to gains registered the day before after a U.S. snapshot of inventories revealed a surprising drop in U.S. gasoline and heating oil supplies.

Tension between Western powers and Iran also boosted energy prices. The U.N. nuclear watchdog reported Thursday that Iran — OPEC's No. 2 supplier — is still refusing to end uranium enrichment, in defiance of the Security Council.

Light, sweet crude for April delivery rose 47 cents to $61.42 in electronic trading on the New York Mercantile Exchange by noon in Europe.

-cut-

U.S. crude inventories climbed 3.7 million barrels to 327.6 million barrels in the week ending Feb. 16, the Energy Information Administration said Thursday. But what stoked the market's advance were gasoline inventories falling by 3.1 million barrels to 222.1 million barrels, and distillates, which include heating oil and diesel, dropping by 5 million barrels to 128.3 million barrels.

http://news.yahoo.com/s/ap/oil_prices

[ozymandius]

3. Sempra Energy shows sharp earns drop

SAN DIEGO - Sempra Energy, the parent of Southern California's two major gas utilities and an energy trading business, on Thursday posted a 65 percent drop in fourth-quarter profits, hurt by investments in Argentina that soured when that country's economy collapsed five years ago.

Sempra earned $125 million, or 48 cents a share, down from $355 million, or $1.38 a share, during the same period of 2005. The latest period included a charge of $221 million for investments in two Argentine natural gas distributors.

Excluding the Argentina charge and smaller charges, Sempra earned $1.42 a share, beating an estimate of $1.20 a share among analysts surveyed by Thomson Financial.

-cut-

The utilities business — which consists of Southern California Gas Co. and San Diego Gas & Electric Co. — posted a profit of $110 million in the fourth quarter, down from $120 million a year earlier. The 2005 result was boosted by a $54 million in payments from the California Public Utilities Commission for reaching energy conservation targets.

http://news.yahoo.com/s/ap/20070223/ap_on_bi_ge/earns_sempra_energy_2

[ozymandius]

23. Analysis by Bonddad

-chart-

Looking at the raw data, here's what we have. Starting in mid-January, oil rose from it's lows and ran into resistance at the 50 day simple moving average. For about the next month, traders consolidated these gains. Yesterday, oil closed over the psychologically important level of $60/bbl. In addition, it appears the 20 day simple moving average is about to cross the 50 day average. The price is trading above the 20 and 50 SMA. Finally, the uptrend is still firmly in place. In short, there are a lot of strong technical reasons for this chart to continue moving up.

-cut-

In short, the bulls have a lot to be happy about right now.

http://bonddad.blogspot.com/2007/02/oil-closes-above-60bbl.html

[AnneD]

27. Well , after looking at bondad's analysis...

looks like I'll have to buy my oil patch friend a cup of coffee. I think he nailed this one. That was a good 'field' report.

[Roland99]

35. I wonder if this warmer weather will put a dent in that rise?

[AnneD]

25. Oilman Oscar Wyatt Jr. loses bid to end Oil-for-Food fraud case

WASHINGTON — Houston oil tycoon Oscar Wyatt Jr., accused of funneling kickbacks to Saddam Hussein's regime, has failed to convince a federal judge he had been targeted for prosecution because of his criticism of U.S. policy toward Iraq.

U.S. District Court Judge Denny Chin, in an order released Thursday, refused to dismiss fraud and conspiracy charges against Wyatt, who had spoken out publicly against former President George H.W. Bush's decision to expel Sad-dam's troops from Kuwait during the Persian Gulf War.

"The evidence does not ... show that Wyatt's prosecution was brought on to punish him or to retaliate against him for his views," Chin wrote.

Asked about the ruling, Wyatt attorney Gerald Shargel said: "We made arguments that we strongly believed were right. We still believe in those arguments, but now it's time to focus on the trial."

http://www.chron.com/disp/story.mpl/business/4575194.html

The Wyatt's are a Houston family with a long and interesting history. Funny how they go after the Wyatt's but no one talks about George Seniors Contra dealings (Zapata Oil). OOPS, that is suppose to be a secret. Same game, different players. Maybe it is because Wyatt gives more to DEMS. Nah, couldn't be that. I'll tell you, it gets cut throat in the oil. I am sure there is some bad blood that goes back a ways if I rooted around a bit.

[Ghost Dog]

40. Very interesting.

:smoke:

[UpInArms]

4. dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DX&v=i

Last trade 84.34 Change 0.00 (0.00%)

Dollar Passivity Unsettled By Geopolitical Speculating

http://www.dailyfx.com/story/currency/eur_news/Dollar_Passivity_Unsettled_By_Geopolitical_1172168027780.html

The dollar, for all intents and purposes, was expected to enter a quiet range for the remainder of the week as the global economic calendar thinned out. However, traders still in the market were not disappointed with a sharp jump in volatility after the deadline past for Iran to comply with the UN’s demands for the country to halt uranium enrichment.

Though the market saw a few sharp runs, technicals remained largely intact across the majors. In the overnight hours, the greenback was able to pull down a 65 point advance against the euro to 1.3080, but the market has since retraced nearly every pip of the move. For USDCHF, the same push and pull with the dollar forced the pair off of intraday highs around 1.2440 back to make contact with Asian session lows around 1.2370. No other major currency enjoyed the dollar selling more than the British pound, which pushed 130 points higher through to noon in New York with little sign of giving up its momentum. Finally, the USDJPY, still shaken from the carry trade risk yesterday, sustained its steady advance with another 55-point from Wednesday’s New York session close.

For volatility traders, Thursday’s session was sizing up to be a quiet day with few pieces of data on the docket. On the other hand, exogenous event risk could not be ruled out as the UN’s deadline for Iran approached the zero hour. For months, the Security Council, led by Western powers, has issued verbal warnings for Iran to halt its efforts to enrich uranium. While Security Council has suspects the sovereign nation is pursuing the technology for weapons purposes, Iranian officials maintain it is solely for public energy uses. In the most recent round of back and forth, the UN was awaiting a report from the International Atomic Energy Agency which looked into whether the nation had complied. Not surprisingly, the six page statement affirmed that Iran had not complied and had in fact expanded its operation. This was not at all unexpected given President Mahmoud Ahmadinejad’s frequent rebuke of pressure put upon his government. However, the keen geopolitical risk involved in the deadline was not lost on the market. The UN has already laid out economic sanctions for the country while the US has begun to arrest Iranian nationals in Iraq and urge European financial firms to cut ties with the country. Should the verbal standoff escalate, geographic proximity will need to be weighed against involvement for forex flows.

More tangible for data hounds, the weekly jobless claims numbers and Help Wanted Index helped to mold speculation for the coming labor statistics. According to the government’s calculation, first time filings for unemployment benefits dropped from its highest level since September 2005 to a 332,000 in the week through February 17th. This dropped was less than expected. At the same time though, continuing claims, which made a similar high in its previous reading, beat expectations with a substantial drop to 2.509 million people. Overall, these numbers couldn’t alleviate the cautious outlook for NFPs. Even the Conference Board’s reading of the Help Wanted Index for January offered little clarity. Dropping back from a six-month high, when the drop in demand for construction job is factored out; the indicator supports the notion that firms are holding onto their employees.

...more...

US Dollar / Japanese Yen (USD/JPY): Will 2007 Be the Breakout Year?

http://www.dailyfx.com/story/special_report/special_reports/US_Dollar___Japanese_Yen_1172177357298.html

Did you know that in 2006, the Japanese Yen had the tightest range against the US dollar in 35 years? Last year, volatility in the currency market contracted significantly, causing USD/JPY to remain restricted to a 10 big figure (each big figure is 100 pips) trading range. Over the past 35 years, the average high to low range of USD/JPY was approximately 30 big figures or 3000 pips. In 2006, the yearly range was one third of that. Sharp contraction in ranges tends to lead to sharp breakouts and 2007 could be the year in which we see just that.

Plunge in Volatility in 2006 was Driven By Central Bank Activity

Before exploring what could happen in 2007, we need to understand what drove volatilities lower last year. There were 3 main factors that encouraged the drop in volatility – central bank activity in the markets, the predictability of monetary policy and the one-sided action by hedge funds. Central banks have been more active in the currency markets than ever these days. From reserve diversification to worrying about the value of each other’s currencies, government officials have been keeping a close eye on exchange rates. On one hand, central banks such as China and Russia are moving to diversify out of dollar based assets and into the currencies like the Japanese yen and Euro. On the other hand, countries like Japan are doing all they can to limit sharp appreciation in their exchange rates. Central banks became far more transparent about their outlook for monetary policy while narrowing interest rate spreads throughout 2006.

Statistical Significance of Last Year’s Range

The yearly trading range for USD/JPY can be seen in the following chart; the red line denotes the average. In only 4 out of the past 35 years, including 2006 has the range fallen below 50 percent of the average, which are circled in green. In each one of those instances, the trading range increased by more than 35 percent the following year. Just from a statistical perspective, this suggests that we could see a similar rise in volatility in 2007. However that is not the only reason…



...more...

[UpInArms]

26. dollar practices dumpster diving

Last trade 84.02 Change -0.32 (-0.38%)

[AnneD]

29. At least

the dumpster is half full from all that printing activity-makes things a bit easier.

[Ghost Dog]

45. Euro up sharply as data point to higher euro zone interest rates

http://www.forbes.com/afxnewslimited/feeds/afx/2007/02/23/afx3456869.html

LONDON (AFX) - The euro was sharply higher against the dollar as strong data this week point to higher interest rates in the euro zone, with most in the market expecting rates to rise beyond the expected rate hike to 3.75 pct in March.

The single currency dipped slightly earlier in the day after this morning's key German Ifo business climate showed a bigger-than-expected fall, but soon recovered as markets concluded that the data remain consistent with robust growth. Moreover, business confidence surveys out of France, Italy and Belgium yesterday were all well above forecasts, while French household consumption data this morning were also very strong.

'The news out of the euro zone is still positive and the ECB is not done with hiking rates,' said Marios Maratheftis, currency analyst at Standard Chartered.

Investors are starting to look ahead to the ECB's next interest rate decision on March 8, when borrowing costs are fully expected to rise to 3.75 pct, with many forecasting another quarter point rise in June as well.

Maratheftis said the interest rate outlook in the euro zone contrasts with the situation in the US, where data are consistent with a soft landing and the Federal Reserve leaving interest rates on hold. He added that the rebound in the dollar following Wednesday's slightly stronger-than-expected US CPI data was also overdone, given that it does not signal any real change in the outlook for US inflation.

'There was some overreaction in the dollar rebounding earlier this week,' he said.

/...

[Ghost Dog]

46. Gold hits 7-month high

Traders pile into precious metals on rising oil prices and trouble with Iran.
http://money.cnn.com/2007/02/23/markets/gold.reut/index.htm?section=money_markets

NEW YORK (Reuters) -- U.S. gold futures rose 1 percent and silver jumped to a nine-month high on Friday as investors poured money into the precious metals markets before the weekend because of heightened geopolitical tensions and firmer energy prices.

At 10:23 a.m. EST, most-active gold for April delivery on the COMEX division of the New York Mercantile Exchange was up $6.90 at $689.90 an ounce, trading in a range between $676.20 and $690.90, the loftiest level since July of last year.

The April contract has gained more than 13 percent since it hit a low of $607.20 in early January, and is now within $10 to the key psychological mark of $700.

Carlos Perez-Santalla at Hudson River Futures said that investors would prefer to buy heading into the weekend.

"People would feel more comfortable being long gold with the potential risk involved with the Iranian problem," he said.

/...

[ozymandius]

5. Microsoft hit with $1.52 billion patent suit damages

NEW YORK (Reuters) - A U.S. federal jury found that Microsoft Corp. (MSFT.O: Quote, Profile, Research) infringed audio patents held by Alcatel-Lucent (ALU.PA: Quote, Profile, Research) (ALU.N: Quote, Profile, Research) and should pay $1.52 billion in damages, the No. 1 software maker said on Thursday.

Microsoft said it plans to first ask the trial judge to knock down the ruling and will appeal if necessary. It said the verdict is unsupported by the law and that it had already licensed the technology in question from Germany's Fraunhofer.

Alcatel-Lucent had accused the world's biggest software maker of infringing patents related to standards used for playing MP3 digital music files.

http://www.reuters.com/article/wtMostRead/idUSWEN465120070223

[UpInArms]

6. Toll Brothers (luxury home builder) 1Q profit falls 67 percent

http://news.yahoo.com/s/ap/20070223/ap_on_bi_ge/earns_toll_brothers

PHILADELPHIA - Luxury-home builder Toll Brothers Inc. said Thursday its first-quarter profit dropped 67 percent due to hefty writedowns and other costs, and Chief Executive Robert Toll said many markets were still soft.

Quarterly earnings declined to $54.3 million, or 33 cents per share, from $163.9 million, or 98 cents per share, during the same period a year ago. Analysts surveyed by Thomson Financial were looking for net income of 29 cents per share.

Revenue slipped 19 percent to $1.09 billion from $1.34 billion in the previous year, meeting Wall Street's expectations.

The latest quarter's results include a goodwill impairment charge of $9 million related to Toll's 1999 acquisition of the Silverman Cos. in Detroit. Earnings also were hurt by $96.9 million in costs to write down the value of land and housing stock the company no longer believes it can sell at a profit, versus writedowns of just $1.1 million in the prior-year period.

States in the North showed the biggest decline for Toll, down 32 percent, followed by the West and the mid-Atlantic states. The South had the smallest dip.

First-quarter net signed contracts slid 34 percent to $748.7 million. The West had the weakest showing, down 59 percent, followed by the Southern states, the Mid-Atlantic and the North.

...more...

[ozymandius]

7. The Suitors for Chrysler Grow Sparse

AUBURN HILLS, Mich., Feb. 21 — DaimlerChrysler would prefer to sell the struggling Chrysler Group in one piece, rather than let potential bidders pick and choose among its assets, people with direct knowledge of the situation said on Wednesday.

But it is hard to find anyone who will admit to being interested in buying Chrysler, at least before JPMorgan Chase sends out the offer book that it is preparing on the struggling American car company.

Both the Nissan Motor Company and Volkswagen said Wednesday that they did not plan to buy Chrysler, and American-traded shares in DaimlerChrysler fell on the news, closing down $2.04, or 2.8 percent, at $70.85, on the New York Stock Exchange. Fiat and Hyundai had already taken themselves off the consideration list.

http://www.nytimes.com/2007/02/22/automobiles/22place.html?_r=1&em&ex=1172206800&en=1330d277447f1633&ei=5087%0A&oref=slogin

[ozymandius]

17. Report: Chrysler shopped to private equity

NEW YORK (CNNMoney.com) -- Four of the nation's largest private equity firms have been contacted about possibly buying Chrysler Group from DaimlerChrysler, according to a published report.

The Financial Times reported Friday that Apollo Management, Blackstone Group, the Carlyle Group and Cerebus Capital, as well as several European firms, have all been contacted about their potential interest in the troubled North American automaker.

-cut-

Private equity firms have shown a willingness to invest in troubled industrial companies. For example, Cerberus was one of the lead investors in a $3.4 billion investment in bankrupt auto parts maker Delphi announced in December. It also acquired a 51 percent stake in GMAC, the finance arm of General Motors, last year.

http://money.cnn.com/2007/02/23/news/companies/chrysler_private_equity/index.htm?postversion=2007022307

[UpInArms]

8. H&R Block Posts a Loss in the Third Quarter because of mortgage lending arm

http://www.nytimes.com/2007/02/23/business/23block.html?ex=1329886800&en=1faee3a300b99053&ei=5088&partner=rssnyt&emc=rss

KANSAS CITY, Mo., Feb. 22 (AP) — The tax preparer H&R Block said Thursday that it swung to a loss in the third quarter as losses in its troubled mortgage lending arm offset a strong beginning of the tax season.

The company said it lost $44.7 million, or 14 cents a share, in the three months that ended Jan. 31, in contrast to income of $12.1 million, or 4 cents a share, in the same period a year ago.

Revenue for the quarter increased to $955.1 million, from $860.3 million.

H&R Block generates the bulk of its revenue and profits during its fiscal fourth quarter, which includes most of the income tax filing season.

Excluding the Option One mortgage business, the company reported income from continuing operations of $25 million, or 8 cents a share, in contrast to a loss of $30.3 million, or 9 cents a share, during the same period a year ago. The previous-year period included $43.3 million in legal costs.

Analysts surveyed by Thomson Financial had expected earnings of 13 cents a share on revenue of $1.13 billion.

H&R Block announced last year that it was considering selling Option One, which has been plagued since last summer with falling profits and delinquent loans to “subprime” customers, or people with spotty credit histories. The company said Thursday it would announce the results of that process next month.

...more...

[UpInArms]

9. Booming Profits at Gold Producers

http://www.nytimes.com/2007/02/23/business/23mine.html?ex=1329886800&en=89256607f7d52aca&ei=5088&partner=rssnyt&emc=rss

Barrick Gold and Newmont Mining, the two largest gold producers in the world, said yesterday that profit surged in the fourth quarter as the price of bullion jumped.

Barrick, the No. 1 producer, said income rose to $418 million, or 48 cents a share, from $175 million, or 32 cents a share, a year earlier. Newmont, ranked No. 2, said income increased to $223 million, or 50 cents a share, from $62 million, or 14 cents a share.

Barrick, which is based in Toronto, overtook Newmont as the biggest producer with its $10 billion acquisition of Placer Dome last March, helping it increase output by 48 percent in the quarter.

At Newmont, a 31 percent increase in gold prices increased profit even though sales fell and mining costs rose.

“Prices of the commodity have risen nicely, but all the increase isn’t coming through because costs have gone up so much at both companies,” said John Kinsey, a money manager at Caldwell Securities in Toronto.

...more...

[ozymandius]

13. Seems that I recall the Bush* family

is heavily invested in Barrick.

[UpInArms]

18. info on that

(all you have to do is prod my memory)

http://www.gazette.uwo.ca/1997/October/17/default.htm

A new explanation for granting an honorary degree to former United States President George Bush has emerged at the University of Toronto but both corporate and university figures insist it is not true.

Heather Murray, professor of English at U of T, said speculation between people in the university is that the reason Bush was offered a degree was because of his relationship with a very influential, Toronto businessman.

Chair and Chief Executive Officer of Barrick Gold Corporation Peter Munk is a frequent patron of U of T and Murray said she finds it hard to believe there is no connection between his relationship with Bush and the degree.

"Everyone I've talked to believes that's why Bush got the degree. Everyone knows there's a connection," she said.

Bush is the honorary senior advisor to an international advisory board for the Barrick corporation. However, he respects Munk as a person but that is the extent of their relationship, Bush's spokesperson Jim McGrath said.

...more...

http://www.onlinejournal.com/archive/12-01-00_Palast.pdf

Take two packets of payments to the Republican Party, totalling $148,000, from an outfit called Barrick Goldstrike. That's quite a patriotic contribution from a Canadian company. They can afford it. In 1992, in the final hours of the Bush presidency, Barrick took control of US government-owned property containing an estimated $10bn in gold. For the whole shooting match, Barrick paid the US Treasury only $10,000.

Barrick made deft use of an 1872 gold rush law meant to allow pan-and-bucket prospectors to gain title to their tiny claims. In 1992, Clinton's newly elected administration was ready to prevent Barrick's stunning grab. But Barrick is a lucky outfit. Bush's Interior Department expedited procedures to ram through Barrick's claim stake before Clinton's inauguration.

Ex-Pres George Bush was lucky, too. When the electorate booted him from the White House, he landed softly - on the Barrick Goldstrike payroll, where he comfortably nested until last year.

Who is Barrick? Its founder, Peter Munk, made his name in Canada in the 1950s as the figure in an infamous insider stock-trading scandal. Munk headed a small speaker manufacturer that went belly-up, just after he sold his stock. This is not quite the expected pedigree for an international minerals mogul.

If we look in the shadows behind Munk we can see the more accomplished player who provided the capital to set up Barrick - Saudi arms dealer Adnan Khashoggi.

During Bush's presidency, Khashoggi was identified as conduit in the Iran-Contra conspiracy. He had already run into trouble with US lawmen when, in 1986, he was arrested and charged -- but not convicted -- of fraud. He was bailed out of the New York prison by Munk, who provided the $4m bond. Bush performed an even bigger favour for Khashoggi: as his last act in office, the president pardoned Khashoggi's alleged co-conspirators, key members of Bush's own cabinet. As a result, no case could be made against Khashoggi.

...more...

[ozymandius]

20. The mafia must be jealous.

These guys have been gaming every money making system for seventy years. All of it has been under the guise of legal political maneuvering.

[AnneD]

22. Morning Marketeers....

:donut: Somehow, it is appropriate that I post here, 'cause I can smell a lot of BS, but it isn't coming from here. Nothing from this admin surprises me any more.

Today is a special day here in Houston. It is the kick off of the Houston Livestock Show and Rodeo-Go Texan Day for us. Everyone gets to be a cowboy and cowgirl for the day. It is the largest rodeo in the world. Now some folks will mention the Calgary Stampede-but I saw the Stampede and frankly-the Houston Livestock Show is bigger. My brother and sister were in FFA and I have many fond memories. In fact, seeing the kids grooming their animals and watching the judging is the best part for me. I had several friends that won scholarships from the Rodeo. They raise millions of dollars every year for scholarships-so it really is a fun and worthwhile event.

It will be interesting navigating traffic today as all the trail riders make their way to the Reliant Center (close to where I live). When we first moved to Houston in 1968, we lived in a rural area in a ranch hands house. We always looked forward to the trail riders camping out by the cattle ponds. They are limited these days, but folks with vacant land are still willing to let these folks camp out. We had a group camping out near use last night.

There will be chili cookoffs, BBQ cookoffs, and you name it. If you can put it on a stick and fry it, you'll find it on the midway. It has an art competition for the kids of Houston. Also, there is all sorts of baking and canning competitions. I have many pictures of my daughter enjoying the rodeo as she was growing. This surely is a great time to visit Houston and take part in all the fun.

Happy hunting and watch out for the bears.

[Ghost Dog]

41. Yup- One among many bad smells emanating from somewhere

not so far away from the center, over there...

Jeez. There are so many potential buys on my list now that I know would make an indecent profit, were they not precisely that: indecent; unethical.

BTW, talking of Rodeos, the real 'West' and all that, please tell me you have been reading the excellent writing of Annie Proulx (of recent Brokeback fame). Talk to me about Rodeo-riders (and bull-breakers); long drivs; pig-factory-farms in Texas; Lonely Wyoming, for example, and I immediately think: Annie Proulx.

[AnneD]

51. My brother lives in Colorado...

and trains quarter horses for the rodeo circuit. By the time he finishes with them, they are worth 6 figures. He is a real cowboy. He did his fair share of rodeoing when he was younger. Would you believe our High School has and still has a rodeo training ground (in Houston, Texas). Every August the school has the rodeo. Of course they are big on safety-but in these days of law suits, I still find it hard to believe they still have a rodeo in High School.

I am lucky to keep up with the readings in my own profession, but I will surely put Annie Prolux on my list with your recommendation. The best Texas memories-going out west, in the deserts, no town for miles around, taking out a blanket and draping it over the hood of the car and laying down to look at the stars in the sky. It stretches on into eternity. I tend to think of Sagan, Hawking, and Einstein at these times.

[Ghost Dog]

56. "The best Texas memories"

"The best Texas memories-going out west, in the deserts, no town for miles around, taking out a blanket and draping it over the hood of the car and laying down to look at the stars in the sky. It stretches on into eternity."

Beautiful. So beautiful. I think I understand you. It's hard to find that much space, sense of freedom, here in Europe (although in Spain (for Europe, big, empty, hot, dry country), in truth, one can get close).

:hi: (and hi also, with great respect, with your permission, to your ancestors).

ed. Annie Proulx. If you have a chance to enjoy reading fine, contemporary right-on down-home courageous with-cojones (dixie-chicks, petrhaps, style) writing, read Annie Proulx.

[AnneD]

63. While not claustrophobic per se....

I do prefer the wide open spaces-That IS the Indian in me. My brother (the horse trainer) at one point thought about returning to his German wife's home. We had a real heart to heart on that one. He really needs vista-more than me-for his own well being. He finally decided to stay in Colorado.
There are places in Europe that might come close Spain, Scotland, but the vista are unique to the west. Georgia O'Keeffe captured it best, better than a camera.
Looking forward to reading Annie Proulux.

[donkeyotay]

47. I bet you also have a link to the story, related to Barrick, IIRC

About the unfortunate fella that fell out of Bush's helicopter?

[Ghost Dog]

50. Yes. Remember it well. UK Observer (Greg Palast)- copied here:

http://neighbors.designcommunity.com/notes/1145.html

ed. also see here: http://cryptome.org/palast.htm

[donkeyotay]

53. Ha! Thanks, unfortunately, it doesn't sound like it was Bush's helicopter

The gold find was a hoax. After Jim-Bob learnt he'd been suckered, his company invited geologist De Guzman to talk it over. Sadly, on way to the meeting, De Guzman fell out of a helicopter.

But it's a minor part of the story:

If we look in the shadows behind Munk we can see the more accomplished player who provided the capital to set up Barrick - Saudi arms dealer Adnan Khashoggi.

During Bush's presidency, Khashoggi was identified as conduit in the Iran-Contra conspiracy. He had already run into trouble with US lawmen when, in 1986, he was arrested and charged - but not convicted - of fraud. He was bailed out of the New York prison by Munk, who provided the $4m bond. Bush performed an even bigger favour for Khashoggi: as his last act in office, the president pardoned Khashoggi's alleged co-conspirators, key members of Bush's own cabinet. As a result, no case could be made against Khashoggi.

[Ghost Dog]

55. Yeah. There was another, more specific, version of this or a similar story, as I recall;

apparently more difficult to reference at this time.

(I was looking after my mother, dying of cancer, at that time. So I remember well.)

That the Bush family 'invited' and provided transport; that the invited person 'unfortunately fell' from a helicopter.

-> I thought it had to do with a BFEE oil deal in Iran, actually, rather than Gold...

...Stay tuned.

[UpInArms]

54. here's one for you (edited to add info)

and it's good to "see" you again, donkeyotay :hi:

http://www.sgrm.com/art45.htm

The Bre-X saga is the greatest gold scam ever. But to understand the enormity of the fraud, you had to be there. Our man in Borneo tells his story.

Richard Behar

When I stepped off the plane in Jakarta, I was, like the rest of the world's lemmings, swept up in the Bre-X Minerals euphoria. The Canadian company had found the largest gold deposit of the century, buried deep underground in a dense Indonesian jungle on the island of Borneo. As Bre-X vice chairman John Felderhof later explained to me, a volcano had essentially "collapsed back onto itself" three million years ago, causing a massive buildup of heat and pressure, which created the miraculous treasure. He drew a diagram. It made sense. After all, he was on his eighth beer of the evening; I was on my fourth. What's more, everyone believed him--fellow geologists, engineers, financial analysts, business journalists, the world's largest mining companies, government officials, even a former U.S. President. "Geologically, it's the most brilliant thing I've ever seen in my life," Felderhof sputtered. "It's so big, it's scary. It's f--ing scary!"

Horrifying is a better word. Bre-X was a gold-mining hoax--the largest of any century--until it collapsed onto itself last month. Allegedly thousands of rock samples were "salted" with flakes of gold before they were tested. Today Felderhof is rich and sends his regrets from the Cayman Islands, where he professes his innocence and is applying for permanent residency. His deputy geologist, Mike de Guzman, is not so fortunate, having apparently jumped 800 feet into the jungle from a helicopter once the jig was up. Bre-X CEO David Walsh is holed up at the company's Calgary headquarters, scuffling with camera crews. Class-action lawsuits are flying, while criminal investigators are poring over the company's books.

The numbers are heart-stopping. The market value of Bre-X had topped $4 billion--a growth rate of 100,000% in three years. In early May the company melted into bankruptcy. But not before Walsh, his wife, and Felderhof had mined roughly $50 million from stock sales. And the gold? In the weeks before the fraud was exposed, some 71 million ounces of the yellow metal, worth $25 billion at today's prices, had supposedly been "proven" by Bre-X. Then Felderhof said he was "comfortable" with 200 million ounces--far more than the California gold rush. One Bre-X official told me "400 million."

The numbers tell only part of the story. To grasp the enormity of the scam, you had to be there. You had to see the cosmos that Bre-X had created, like an elaborate Hollywood set with hundreds of actors who could be loaded onto trucks and barges once the tickets had been sold. "You have to understand, this thing is like a 20-foot man," gushed Research Capital mining analyst Chad Williams after returning from an early pilgrimage. "For someone in our business, it's like taking the biggest Elvis fan to Graceland."

<snip>

(adding the following paragraph on edit)

The story is familiar now. For nearly a year, until Freeport was awarded the contract, the Indonesian government had delayed giving Bre-X control over Busang. Big mining companies jockeyed for position. As the gold estimates grew, Indonesian officials were determined to select an established firm as the operator. Mining giants were lobbying for the post, none harder than Peter Munk, CEO of Toronto's Barrick Gold, the world's second-largest gold producer. Munk hired Kroll Associates, the world's biggest detective agency, to dig up dirt on Bre-X in anticipation of a hostile takeover bid. He enlisted former U.S. President George Bush to lobby Suharto, the Indonesian ruler. He retained the services of a daughter of Suharto to get an edge. (Bre-X offered $40 million to a son.)

...more...

[UpInArms]

58. Hill and Knowlton were involved in this?

After a few more days in Jakarta, I returned to the States on February 17. Bre-X soon unraveled. Even then, many believers chose to stay blind. In March, after de Guzman's death, Barrick's Peter Munk told FORTUNE, "I don't believe that those guys salted the mine...you couldn't have fooled that many analysts for that long." When Freeport said its drilling showed "insignificant" gold, Bre-X's flacks at Hill & Knowlton suggested that Freeport was behind a scheme to lower the stock price (see following box). The last time I heard from Walsh, March 20, he left me a phone message confirming some arcane historical facts in my story--a day after de Guzman's death and a week after Freeport called Walsh with the news that they were coming up dry at Busang. This is a crook? Or the Mr. Magoo of mining?

and for anyone interested in who and what Hill and Knowlton are:

http://www.prwatch.org/books/tsigfy10.html

In addition to Republican notables like Gray and Fuller, Hill & Knowlton maintained a well-connected stable of in-house Democrats who helped develop the bipartisan support needed to support the war. Lauri Fitz-Pegado, who headed the Kuwait campaign, had previously worked with super-lobbyist Ron Brown representing Haiti's Duvalier dictatorship. Hill & Knowlton senior vice-president Thomas Ross had been Pentagon spokesman during the Carter Administration. To manage the news media, H&K relied on vice-chairman Frank Mankiewicz, whose background included service as press secretary and advisor to Robert F. Kennedy and George McGovern, followed by a stint as president of National Public Radio. Under his direction, Hill & Knowlton arranged hundreds of meetings, briefings, calls and mailings directed toward the editors of daily newspapers and other media outlets.

Jack O'Dwyer had reported on the PR business for more than twenty years, but he was awed by the rapid and expansive work of H&K on behalf of Citizens for a Free Kuwait: "Hill & Knowlton . . . has assumed a role in world affairs unprecedented for a PR firm. H&K has employed a stunning variety of opinion-forming devices and techniques to help keep US opinion on the side of the Kuwaitis. . . . The techniques range from full-scale press conferences showing torture and other abuses by the Iraqis to the distribution of tens of thousands of 'Free Kuwait' T-shirts and bumper stickers at college campuses across the US."76

Documents filed with the US Department of Justice showed that 119 H&K executives in 12 offices across the US were overseeing the Kuwait account. "The firm's activities, as listed in its report to the Justice Department, included arranging media interviews for visiting Kuwaitis, setting up observances such as National Free Kuwait Day, National Prayer Day (for Kuwait), and National Student Information Day, organizing public rallies, releasing hostage letters to the media, distributing news releases and information kits, contacting politicians at all levels, and producing a nightly radio show in Arabic from Saudi Arabia," wrote Arthur Rowse in the Progressive after the war. Citizens for a Free Kuwait also capitalized on the publication of a quickie 154-page book about Iraqi atrocities titled The Rape of Kuwait, copies of which were stuffed into media kits and then featured on TV talk shows and the Wall Street Journal. The Kuwaiti embassy also bought 200,000 copies of the book for distribution to American troops.77

Hill & Knowlton produced dozens of video news releases at a cost of well over half a million dollars, but it was money well spent, resulting in tens of millions of dollars worth of "free" air time. The VNRs were shown by eager TV news directors around the world who rarely (if ever) identified Kuwait's PR firm as the source of the footage and stories. TV stations and networks simply fed the carefully-crafted propaganda to unwitting viewers, who assumed they were watching "real" journalism. After the war Arthur Rowse asked Hill & Knowlton to show him some of the VNRs, but the PR company refused. Obviously the phony TV news reports had served their purpose, and it would do H&K no good to help a reporter reveal the extent of the deception. In Unreliable Sources, authors Martin Lee and Norman Solomon noted that "when a research team from the communications department of the University of Massachusetts surveyed public opinion and correlated it with knowledge of basic facts about US policy in the region, they drew some sobering conclusions: The more television people watched, the fewer facts they knew; and the less people knew in terms of basic facts, the more likely they were to back the Bush administration."78

Throughout the campaign, the Wirthlin Group conducted daily opinion polls to help Hill & Knowlton take the emotional pulse of key constituencies so it could identify the themes and slogans that would be most effective in promoting support for US military action. After the war ended, the Canadian Broadcasting Corporation produced an Emmy award-winning TV documentary on the PR campaign titled "To Sell a War." The show featured an interview with Wirthlin executive Dee Alsop in which Alsop bragged of his work and demonstrated how audience surveys were even used to physically adapt the clothing and hairstyle of the Kuwait ambassador so he would seem more likeable to TV audiences. Wirthlin's job, Alsop explained, was "to identify the messages that really resonate emotionally with the American people." The theme that struck the deepest emotional chord, they discovered, was "the fact that Saddam Hussein was a madman who had committed atrocities even against his own people, and had tremendous power to do further damage, and he needed to be stopped."79

[donkeyotay]

59. Thanks, UIA. Fascinating eye-witness account there.

:hi:

Wow. A $4B fraud. It almost seems quaint by today's standards...

[ozymandius]

10. US hedge funds face new guidelines

Top US regulators on Thursday unveiled the first new guidelines for hedge fund oversight in eight years, urging investors and creditors to tighten up on due diligence in the rapidly-growing industry.

The move, immediately welcomed by the hedge fund and securities industry, appeared designed to be a high-level effort to head off any further calls for government action to tighten control of hedge funds.

One senior Treasury official said: "We've chosen a path here. We think there are direct examples of regulation in place – anti-fraud, market procedure and accredited investor thresholds for hedge funds. So there are rules in place.

-cut-

The guidelines come after months of discussion between members of the President's Working Group on Financial Markets (PWG) - which includes the Treasury, Securities and Exchange Commission and other agencies – on how to deal with increasing concern over the systemic risks posed by a hedge fund collapse.

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=FT&Date=20070223&ID=6522581

[UpInArms]

11. Wal-Mart's Welcome to India Includes Demonstrations (against it)

http://www.nytimes.com/2007/02/23/business/worldbusiness/23walmart.html?ex=1329886800&en=abf75a703b1f3d8e&ei=5088&partner=rssnyt&emc=rss

NEW DELHI, Feb. 22 (Reuters) — Demonstrators waving banners and shouting slogans marched on government buildings here Thursday to protest the entry of Wal-Mart, the world’s largest retailer, into India.

Wal-Mart and a venture partner, Bharti Enterprises, are working on a deal that could change the face of the country’s $300 billion retail sector and has aroused fears of mass job losses.

In New Delhi, more than 100 protesters shouted “Go back Wal-Mart” and waved placards saying “Save Small Retailers.” Some broke through police barricades and burned an effigy of a dummy with “Wal-Mart Down” scrawled on it.

But there were no protesters Thursday in a suburb of Mumbai where Michael T. Duke, vice chairman of Wal-Mart Stores, accompanied by Rajan B. Mittal of Bharti Enterprises, visited a mall and a hypermarket.

Wal-Mart and Bharti plan a joint venture in a retail market that is forecast to more than double by 2015. Retailing in India, now dominated by small family-run stores, has also attracted the interest of other top global retailers like Tesco and Carrefour.

But owners of small shops are concerned at what they call Wal-Mart’s “backdoor entry.”

...more...

[ozymandius]

12. USDA to apply 'risk-based' meat inspection

WASHINGTON — Federal meat inspectors will apply a new approach to 254 processing plants in April that will intensify monitoring of higher-risk plants but devote less time to plants deemed safer, officials said Thursday.

The U.S. Department of Agriculture's "risk-based" inspection plan immediately drew fire from consumer groups that doubted the agency's ability to determine risk, and from meatpackers complaining that they were blindsided by the plan.

Although the Food Safety and Inspection Service will focus more on plants judged to have a higher risk of contamination, daily inspection will continue at all processing plants, said Richard Raymond, Agriculture under secretary for food safety.

http://www.latimes.com/business/la-fi-meat23feb23,1,7511282.story?coll=la-headlines-business

[ozymandius]

14. Lowe's results hurt by housing weakness

ATLANTA (Reuters) -- Retailer Lowe's Cos. reported an 11.5 percent drop in fourth-quarter earnings Friday as the battered U.S. housing market hurt sales.

The company forecast first-quarter and full-year profit that was about in line with Wall Street's estimates, and the company added that it expects sales at older stores to "gradually" improve during the year.

The second-largest home improvement retailer behind Home Depot Inc. (Charts) reported earnings of $613 million, or 40 cents a share, compared with $693 million, or 43 cents, a year earlier. The year-earlier quarter included an extra week.

-cut-

Weak home sales and construction weighed on Lowe's and Home Depot for the past year. Existing U.S. home sales fell 8 percent in 2006, their biggest drop since 1989. Housing starts fell 13 percent last year, their biggest tumble in 15 years.

http://money.cnn.com/2007/02/23/news/companies/lowes.reut/index.htm?postversion=2007022307

[OrangeCountyDemocrat]

30. No Need To Be Concerned

Housing will be turning around this year.

In fact, the housing market is turning around right now.

Actually.....the housing market turned around last month.

OK, OK....the housing market is going to turn around so quickly, it will be Booming again by the 2nd Qtr. of 2007.

Still don't believe me? Fine! The housing market is going to experience it's BEST YEAR EVER in 2007!

See? When you look at it that way, you shouldn't worry. I'm sure all these home improvement companies will be just fine.

[UpInArms]

15. The Bankruptcy Development That Has Wall St. Worried

http://www.nytimes.com/2007/02/23/business/23insider.html?ex=1329886800&en=2392b02a2e2ddae4&ei=5088&partner=rssnyt&emc=rss

LAST week, Burton R. Lifland, a judge in the Federal Bankruptcy Court in Manhattan, ordered Bear Stearns to pay almost $160 million to investors in a hedge fund for doing business with that fund but failing to detect that it was a fraud.

The case has been received with true fear on Wall Street, where servicing hedge funds is a business so lucrative that it makes the go-go years of bringing technology companies public look quaint. For one, hedge funds do billions of dollars of business in multiple parts of the bank, while many technology companies promptly evaporated after going public.

“Every prime broker has taken note,” said the head of prime brokerage at a top Wall Street firm. “It raises the bar in what we need to know about a client and escalation when there is cause for concern.”

Prime brokerage is the business of servicing hedge funds — finding and lending stock to allow hedge funds to short (a bet the price will fall), financing trades (leverage) and structuring swaps, among other things (services vary by firm). Wall Street firms earned $8 billion to $10 billion from prime brokerage activities last year.

Hedge fund relationships forged through prime brokerage relationships are critical to banks who can then deliver countless other services to hedge funds: trading over-the-counter derivatives, selling exotic stock or bond deals or structuring hedges. If prime brokerage is an increasingly commoditized product, its significance in generating business is not.

...more...

[UpInArms]

16. more

from that link:

The case involving Bear Stearns had its origins in 1996, when Michael Berger, an enterprising young Austrian, began the Manhattan Investment Fund. He bet that technology stocks would fall and when they didn’t, he constructed an elaborate scheme to hide his losses — about $400 million. The S.E.C. sued, and Mr. Berger pleaded guilty to securities fraud in 2000. The fund declared bankruptcy and Mr. Berger fled the country.

Angry investors tried to sue a number of deep-pocketed parties, including Bear Stearns, who was the prime broker, for aiding and abetting the fraud. A federal judge threw that case out in 2001.

Then the trustee tried something different: she sued Bear Stearns in bankruptcy court for $141.4 million — money that Manhattan Investment gave to Bear Stearns in the year before the collapse to allow Mr. Berger to trade. Those funds were later used for collateral to keep trading and to cover short positions once things started to fall apart.

[ozymandius]

19. pre-open numbers and blather

08:59 am : S&P futures vs fair value: -0.1. Nasdaq futures vs fair value: +2.5.

08:33 am : S&P futures vs fair value: -0.7. Nasdaq futures vs fair value: +1.0.

08:12 am : S&P futures vs fair value: -1.2. Nasdaq futures vs fair value: +1.0. There isn't a great deal of conviction in the early-going as stocks are indicated to start the session on a relatively flat and mixed note. An absence of market-moving news is contributing to the neutral tone. Today's earnings calendar is populated with only a handful of names, the most prominent of which is Lowe's (LOW). The home improvement retailer topped estimates by three cents and provided in-line guidance for its first quarter.

[ozymandius]

21. Markets are open for bidness.

9:33
Dow 12,675.44 Down 10.58 (0.08%)
Nasdaq 2,522.31 Down 2.63 (0.10%)
S&P 500 1,455.66 Down 0.72 (0.05%)
10-Yr Bond 4.712% Down 0.018

NYSE Volume 82,732,000
Nasdaq Volume 70,760,000

[UpInArms]

24. 9:49 EST update and check out the blather (rofl)

Dow 12,653.25 32.77 (0.26%)
Nasdaq 2,517.10 7.84 (0.31%)
S&P 500 1,453.12 3.26 (0.22%)
10-Yr Bond 4.706% 0.024

NYSE Volume 231,928,000
Nasdaq Volume 175,539,000

09:40 am : As expected, the stock market has begun the day on a somewhat sluggish note that is a by-product of there being a general lack of trading catalysts.

We would note that the initial downward move is akin to what has been seen in the past few sessions, but that buyers emerged to pare early losses in each of those sessions. Time will tell if their involvement gets the job done again today.DJ30 -20.59 NASDAQ -3.05 SP500 -1.67

[UpInArms]

28. 10:10 EST update and "it's the media's fault" blather

Dow 12,656.54 29.48 (0.23%)
Nasdaq 2,519.89 5.05 (0.20%)
S&P 500 1,453.12 3.26 (0.22%)
10-Yr Bond 4.694% 0.036

NYSE Volume 423,374,000
Nasdaq Volume 342,696,000

10:00 am : The major indices find themselves confined to negative territory as buyers have been slow to action today. There are some pockets of outperformance, but they are related mostly to individual stock moves like the ones seen in H&R Block (HRB 23.53, +1.11), which is a suggested holding in Briefing.com's Active Portfolio, and Lowe's (LOW 35.40, +1.77). Both companies reported their quarterly earnings results.

The jump in oil prices (+$0.31 at $61.26) is generating buying activity among the energy-related issues, which comprise the market's best-performing sector today (+0.66%). Overall, though, the view is one of weakness as 8 of 10 economic sectors are currently trading with a loss.

Financials (-0.50%) are being weighed down by the media's increased attention to the problems in the sub-prime mortgage market and are playing an influential loss role. Not surprisingly, thrifts & mortgage (-1.20%) stands s the worst-performing S&P industry group at this juncture.DJ30 -36.13 NASDAQ -8.49 SP500 -3.47 NASDAQ Dec/Adv/Vol 1515/967/176 mln NYSE Dec/Adv/Vol 1414/1147/74 mln

[ozymandius]

31. Someone must've pulled this reporter off the Iraq beat.

What a freakin' cop-out. Bad news is to blame? I suppose everything would be just grand if we stopped paying attention to one fundamental element.

[UpInArms]

33. here's the newest cop-out - "it's old news! We heard all WEEK!"

10:55 am : The market has extended its losses as the financial sector (-1.30%) has dropped to new lows for the session. The downshift is related to concerns about the problems in the sub-prime mortgage market and the fear that they will carry over to prime lenders. These aren't new fears (we've heard this all week), but it is as good a profit taking catalyst as any ahead of the weekend.

On a related note, the Treasury market has caught a bid on some residual flight-to-quality buying. The yield on the 10-year note has dropped to 4.68% from 4.73% yesterday.

Similarly, some of the stock market's defensive-oriented areas are exhibiting some relative strength today. The utilities sector (+0.50%) and the consumer staples sector (-0.20%) stand out in this respect.DJ30 -53.44 NASDAQ -16.16 SP500 -7.52 NASDAQ Dec/Adv/Vol 1811/969/584 mln NYSE Dec/Vol 1848/358 mln

[nitpicker]

32. And now the banks are crumbling too?

The housing bubble bulletin boards are claiming Coast Bank of Florida is going under due to the collapse of construction there. If so, the following may help explain it:

Coast Bank will continue Tringali tract foreclosure
By JOHN HIELSCHER



[e-mail]

BRADENTON -- Coast Bank of Florida passed on the chance to unload a property for less than a third of what the bank loaned on it.

So the bank's foreclosure against developer Michael Tringali will continue.

An auction Thursday evening generated just two bids for the 253-acre tract near Myakka City, for which Coast loaned $4.94 million to Tringali in August 2005.

Tringali then defaulted on the loan, so Coast filed suit to get its money.

The highest auction bid was $1.6 million, which means Coast would take a $3.34 million loss if it agreed to the sale.

"We're not going to accept that," Coast spokesman Tramm Hudson said Friday. "We're not willing to do that."

Bradenton-based Coast is in no position to take that kind of hit.

The company already faces problems stemming from $110 million in loans to nearly 500 home buyers, many of them speculators, who were doing business with Construction Compliance Inc., a St. Petersburg company that has stopped all work.

One analyst has said Coast could be hit with losses of $20 million to $30 million from those loans.

Coast's loan to Tringali is a different story -- one that has raised questions about land values, appraisals and the bank's lending practices.

(snip)

[UpInArms]

34. when do we get to say "we told you so"?

n/t

[AnneD]

57. This is how the S&L

scandal started here in Houston. Loans were cheap (relatively)and built up supplies, the oil prices slid, folks got laid off, couldn't pay the mortgage, houses got repo'd, sales were down, banks couldn't get back the money they loaned out, had too much risk in RE loans on their books, and went under. One bank I was with went under and FDIC payed me off. I went to another, but it was hard times here.

And I'm telling you so now (not you UIA). ;) This story will be repeated again, and soon.

[Ghost Dog]

36. Hi (I just got home) Something happening here? Anyway, Japan:

Rates move continue to buoy Tokyo stocks

Japanese large and mid-cap stocks rose moderately on Friday, continuing to respond in rather restrained style to the Bank of Japan’s Wednesday decision to raise interest rates.

The Nikkei 225 was up 0.4 per cent to 18,188.42. The broader Topix rose 0.7 per cent to 1,814.96.

The heavily domestic securities and real estate sectors continued rising strongly, up 2.4 per cent and 3.5 per cent, respectively, as investors interpreted as the central bank’s vote of confidence in the Japanese economy.

Mitsui Fudosan, Japan’s biggest property company, was up 3.4 per cent to Y3,610. Mitsubishi Estate, its largest rival, climbed 4.7 per cent to Y4,000. Nomura Holdings, Japan’s biggest securities house, advanced 3.1 per cent to Y2,855. Daiwa Securities, its largest rival, rose 2.5 per cent to Y1,653.

The Mothers market of smaller growth stocks – often taken as a bellwether of retail investor sentiment - soared another 2.4 per cent to 1,189.61, building on Thursday’s sharp rise.

But some export-focused sectors continued to put in an unspectacular performance, despite the fact that the yen remained near a four-year low against the dollar.

The electrical machinery sector rose only 0.3 per cent, and the auto sector was almost flat. Toyota, Japan’s biggest carmaker, inched up only 0.1 per cent to Y8,230, although Canon, the printer and copier maker, advanced 1.2 per cent to Y6,660.

Sanyo Electric, the electrical manufacturer, plunged 21 per cent to Y181 after the local Asahi newspaper reported the company had failed to account for more than $1bn in losses. The company admitted it was being investigated by the Securities and Exchange Surveillance Commission.

/.

Sh@t. Microshaft's Windoze requires rebooting again. Back in a while...

[Ghost Dog]

37. Europe: Bourses close higher on resource gains

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39136.4919212963-890252034&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

European equity markets were higher by the close on Friday, as support from resource stocks outweighed profit taking in the financial sectors. The technology sector was led higher by Alcatel-Lucent, the Paris-listed telecommunications equipment group, after a US court ruled in its favour against software giant Microsoft over an MP3 patent infringement. Microsoft was ordered to pay Alcatel-Lucent $1.52bn in damages. Shares in the French company gained 2.6 per cent to €10.09. The FTSE Eurofirst 300 was up 0.2 per cent at 1,542.52 in closing exchanges, Frankfurt’s Xetra Dax closed up 0.3 per cent at 6,992.58, the CAC 40 in Paris was up 0.2 per cent to 5,716.38 and London’s FTSE 100 added 0.3 per cent to 6,401.5.

[Ghost Dog]

38. Mining stocks rescue FTSE from banking woes

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39136.4899305556-890251908&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

Weakness in the banking sector threatened to drag the FTSE lower on Friday as results from Lloyds TSB failed to impress investors, but commodity stocks rescued the index as metal and oil prices spiked higher. Lloyds was the biggest blue-chip faller despite an 8 per cent rise in pre-tax profits to £3.7bn. Bad debt impairement changes jumped 20 per cent while there were also worries over slowing revenue growth and a lack of movement in the dividend. The bank lost 3.4 per cent to 592.5p while other financials, including Man Group, ICAP, Nothern Rock, Prudential and Old Mutual, were also weaker. Mining companies were higher - tracking firmer metals prices on commodities markets. Xstrata was 2.8 per cent higher at 2645p, Anglo American rose 1.8 per cent to 2608p and Rio Tinto gained 1.5 per cent to 2908p. Oil stocks also rose as the crude price broke through $61 a barrel amid a continued threat of conflict with Iran over its nuclear ambitions. BP rose 2.7 per cent to 535.5p and Royal Dutch Shell was 1.7 per cent higher at 1701p. By the close of trade, the FTSE gained 20.6 points, or 0.3 per cent, at 6401.5. The mid-cap FTSE 250 added 15.6 points, 0.1 per cent, to 11,600.0.

Uh huh.

[Ghost Dog]

39. Swiss SMI Closes Slightly Higher

http://www.postfinance.ch/pf/content/en/topics/etrade/news/stockreportchev.html

Swiss shares reversed afternoon losses and closed Friday's lacklustre session in positive territory, with investors digesting a string of earnings results earlier in the week.

The Swiss Market Index closed 6.25 points or 0.07% higher at 9,258.05 with 11 gainers, 12 decliners and 3 stocks unchanged. The broader Swiss Performance Index dipped 5.09 points or 0.2% to 7,340.8.

Rumours lift Novartis

Novartis closed 0.84% higher at CHF 72.20, boosted by rumours that Nestle is planning to acquire Novartis's Gerber baby food unit worth USD 5 billion to USD 6 billion. Nestle, meanwhile, climbed 0.31% to CHF 479.00. Pharma group Roche inched up 0.04% to CHF 224.40 despite worries about the sales potential of cancer drug Avastin following study results which indicate that a smaller dose of the drug may work just as effectively.

In the positive column, SGS advanced 0.55% to CHF 1,462, Synthes climbed 0.39% to CHF 153.70 and Zurich Financial Services closed 0.76% higher at CHF 366.50.

Swiss Re completes "Gherkin" sale

Swiss Re closed flat at CHF 105.50 after the reinsurer said it has completed the sale of its London office building to an affiliate of the real-estate corporation IVG Immobilien AG for GBP 600 million. Elsewhere among financials, banking heavyweight UBS fell 0.39% to CHF 75.90, rival Credit Suisse dipped 0.49% to CHF 91.70 and Baloise plunged 1.63% to CHF 132.70 after Stefan Loacker, CEO of Helvetia Versicherung, said in an interview that the group intends to remain independent, squashing rumours that Baloise might soon launch a bit for the insurer.

Among top losers, Clariant dropped 1.73% to CHF 19.90, Lonza shed 1.19% to CHF 116.20 and Holcim lost 0.32% to CHF 126.30.

Movers outside the SMI

Outside the SMI, Helvetia shares lost 1% to CHF 509.50 while Netinvest jumped to the top of the SPI, up 12% to CHF 4.38 as the company is in talks for a merger with Tec-Sem AG.

[Ghost Dog]

42. Hmmm. Ok, now I get it.

And it looks like I have to be travelling, offline, (posssibly black, possibly not quite yet) Monday/Tuesday.

Must take steps to remain unconcerned but well-connected.

As an aside: Drink wine and live longer
Turns out there's something to it. Here's the amazing,real story of the scientist and startup that have a shot at making it happen.

(FORTUNE Magazine) -- If you haven't heard of resveratrol, you're probably too young to have had the experience of gazing into the bathroom mirror in the morning and thinking, Damm." Resveratrol is the ingredient in red wine that made headlines in November when scientists demonstrated that it kept overfed mice from gaining weight, turned them into the equivalent of Olympic marathoners, and seemed to slow down their aging process. Few medical discoveries have generated so much instant buzz - even Jay Leno riffed about it in his opening monologue.

But the key question raised by the news - whether the discoveries will lead to pharmaceutical payoffs before we're too old to care - won't be answered in the Harvard lab from which the news sprang. Instead look to a boxy, low-rise building a couple of miles away, an unprepossessing biotech hatchery that got little media attention in the wake of the resveratrol findings.

This is the Cambridge home of two-year-old Sirtris Pharmaceuticals. Its stated goal is to develop medicines that have the same health-boosting effects in people that resveratrol had on mice. But that hardly captures the company's sweeping promise: If it succeeds, its medicines may retard the onset or progression of a whole slew of age-related diseases, from diabetes to Alzheimer's to cancer. The drugs may also have an extremely provocative side effect: They might extend life span. You have to go back to the advent of antibiotics in the first half of the 20th century to find such broad therapeutic potential.

For all that to happen, Sirtris, like most biotech startups, must wend through a minefield that will take many years to traverse. And no biotech gets very far through the minefield without a kind of walking contradiction leading the way- a dreamer with feet planted firmly on the ground, a science whiz who could pass as a circus ringmaster, a riverboat gambler with a passion for minimizing risk.

/... :9

[UpInArms]

43. Fed's Fisher: Hope we may be turning corner on inflation

omg - how many corners can these freaks come up with?

[Ghost Dog]

44. India’s booming economy brings toxic hi-tech waste

http://www.khaleejtimes.com/DisplayArticleNew.asp?xfile=data/subcontinent/2007/February/subcontinent_February868.xml§ion=subcontinent&col=

NEW DELHI - India’s booming economy is producing mountains of toxic electronic waste like discarded computers and televisions, but there are no laws to regulate its disposal, a local environment group said on Friday.

Toxics Link said while the Asian giant’s economy has been growing at eight percent annually over the last three years, it has also resulted in the generation of 150,000 tonnes of electronic waste each year.

An eight-month study by the group found that India’s bustling financial hub of Mumbai was the biggest source of electronic or e-waste, generating 19,000 tonnes every year.

“Being the hub of India’s commercial activities, the banks and financial institutions in Mumbai generate huge amounts of e-waste,” Ravi Agarwal, director of Toxics Link, told a news conference.

“But like the rest of India, there are no laws for its safe handling and this will lead to serious health and environmental impacts.”

/...

[AnneD]

60. This is a red flag issue....

there has never been a good waste processing system in India-but it use to be underdeveloped to most of the stuff would breakdown. Now much of the material is NOT biodegradable and toxic to boot. Unless this primary infrastructure problem is resolved-they will pay out much more in health and environmental cleanup. This is one of the reasons I wouldn't live in India.

[UpInArms]

61. here's a peek at some Indian infrastructure

[AnneD]

62. There were families

that lived and slept on the small traffic medians in Hyderabad. They made their living begging from the stopped traffic during the day and sleeping on the concrete at night. The piles of trash are a bit scaled back in that picture. Now imagine trying to walk through that AND try not to get sick. The monsoons will wash some of it away-but how good then is the water and what is in it.?

[UpInArms]

48. Tokyo, Seoul and Beijing, the Bush Administration has shed credibility, authority and respect.

http://www.timesonline.co.uk/tol/news/world/asia/article1429100.ece

Events – from the loss of Congress to the Republican party to the North Korean nuclear test, and above all the continuing morass in Iraq – have forced a new realism, even a humility on the US government. From Asia, the change is striking: in Tokyo, Seoul and Beijing, the Bush Administration has shed credibility, authority and respect.

Japanese Cabinet ministers speak openly of US “cockiness” and “childishness”. Long-held principles are jettisoned – after insisting for years that it would not deal one-to-one with North Korea, the US was forced to do exactly that in order to reach the disarmament agreement in the Six Party Talks in Beijing last week. Having reassured Japan that it gave high priority to its demand for the return of Japanese kidnapped by North Korea, the US supported a document last week that made no mention of them.

Mr Cheney made a point of playing down expectations of the agreement. “Pyongyang,” he said, “has much to prove.” But it was his remarks on China that were most interesting.

It is China, remember, which hosted and brokered last week’s talks on Korea, “the first hopeful step towards a better future”, as Mr Cheney put it. But rather than grateful thanks, the emphasis of his remarks was on the threat which China is beginning to represent.

[Ghost Dog]

52. Cheney voices concerns on Chinese army

http://www.ft.com/cms/s/d7c0aa9e-c2ec-11db-9e1c-000b5df10621.html

China’s military expansion and recent missile testing are ”not consistent’’ with its stated peaceful objectives, Dick Cheney, the US vice president, said in Sydney on Friday.

During a visit to Australia, Mr Cheney noted that Beijing had been sending mixed messages, but welcomed its role in securing a recent six-party agreement with North Korea to suspend its nuclear programme in return for economic concessions. Mr Cheney said: “The regime in Pyongyang has much to prove, yet this agreement represents a first hopeful step towards a better future for the North Korean people.”

Concerning China‘s recent test of its capacity to destroy satellites, as well as the increase in the size of its military, Mr Cheney said: “(They) are not consistent with China‘s stated goal of a peaceful rise.’’ He added: “We hope China will join us in our efforts to prevent the deployment and the proliferation of deadly technologies, whether in Asia or in the Middle East.”

His visit to his Sydney comes at a difficult time for John Howard, Australia’s prime minister, who is under pressure to justify his decision to maintain Canberra‘s military involvement in the US-led coalition in Iraq, particularly after the UK’s announcement this week that it would reduce its contigent. Mr Howard has also faced criticism over his inability to speed up legal proceedings over David Hicks, an Australian detained in Guantánamo Bay .

However, Mr Howard rejected as “absurd’’ suggestions that the US visit and the strong endorsement from Mr Cheney was a political liability in the run-up to federal elections later this year.

/...

ed. :rofl: :cry: :puffpiece:

[Ghost Dog]

49. Rich countries’ aid promises ‘at risk’

http://www.ft.com/cms/s/8b49b49a-c2b9-11db-9e1c-000b5df10621.html

Rich countries will break their promises to increase development aid to poor nations unless their spending plans change radically, according to the body charged with monitoring the figures.

The Organisation for Economic Co-operation and Development, the Paris-based intergovernmental policy and research institute, also said there were controversies about whether debt relief should be counted as aid, an issue that has sharply divided its member countries.

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The organisation’s annual development report said yesterday that donors were falling further behind pledges made at the Group of Eight summit in Gleneagles, Scotland, in 2005 to increase aid by $50bn (€38bn, £26bn) in real terms by 2010.

The OECD said that a partial survey of the development committee’s 23 member states last year “showed that, for the members able to respond to questions about their plans to 2008, spending plans appeared to fall well short of a steady increase in levels agreed to”.

/...

[ozymandius]

64. The grand finish---

Dow 12,647.48 Down 38.54 (0.30%)
Nasdaq 2,515.10 Down 9.84 (0.39%)
S&P 500 1,451.19 Down 5.19 (0.36%)
10-Yr Bond 4.678% Down 0.052
NYSE Volume 2,535,822,000
Nasdaq Volume 2,012,648,000

4:20 pm : Stock prices slumped on Friday under the weight of a weak financial sector, which got marked down on concerns about the problems in the subprime mortgage market. Those aren't new concerns, but the new thought that influenced investors today was the concern that the problems in the subprime market will carry over to prime lenders.

Now, before creating an impression that participants were really spooked by that possibility, let's be real and take a look at the major indices, and specifically the S&P 500 which dropped a mere 5 points.

To be sure, if the subprime issue was really worrying investors, the S&P 500 would have been down a lot more than it was on Friday. (says these yammering fools) The fact that it wasn't speaks to an enduring bullish bias that has been aided by strong liquidity and good old-fashioned momentum.

While Briefing.com has retained a moderately bullish outlook, we are a bit concerned that the market is getting ahead of itself knowing that earnings growth will slow this year and that there is a lingering threat that the Fed will raise interest rates again.

One of the factors contributing to the rate hike threat is the rebound in oil prices, which hit a high of $61.80 today on the April contract before sliding back on profit taking efforts to close at $60.92. Iran's defiance of the UN over its nuclear program and concerns about refinery production played a big part in oil's uptick this week.

The energy sector (+0.21%) was one of the few winning groups on Friday, but its gains got pared as oil prices retreated late in the session. The utilities sector (+0.95%) was the market's strongest area as better than expected earnings from Nicor (GAS 46.87, +0.59), the sector's defensive orientation, and a drop in market rates sparked buying demand for the income-oriented stocks.

Broad-based weakness in the financial sector (-1.08%), though, was the market's biggest stumbling block today that kept it from making any spirited rebound tries. REITs and investment banking stocks were the hardest hit by selling activity.

In other developments, home improvement retailer Lowe's (LOW 34.93, +1.30) was a winning standout after reporting fourth quarter EPS results that topped expectations by three cents. The real impetus for the stock's advance, though, was the company's admission that it is encouraged by indications that suggest sales trends have bottomed.

Separately, the Treasury market fared well in a flight-to-quality trade that saw the 10-year yield gain 14 ticks and its yield drop to 4.67%.DJ30 -38.54 NASDAQ -9.84 SP500 -5.19 NASDAQ Dec/Adv/Vol 1737/1305/2.04 bln NYSE Dec/Adv/Vol 1676/1599/1.37 bln