STOCK MARKET WATCH, Wednesday March 7

[ozymandius]

Wednesday March 7, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 684 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2263 DAYS
WHERE'S OSAMA BIN-LADEN? 1967 DAYS
DAYS SINCE ENRON COLLAPSE = 1927
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 March 6, 2007

Dow... 12,207.59 +157.18 (+1.30%)
Nasdaq... 2,385.14 +44.46 (+1.90%)
S&P 500... 1,395.41 +21.29 (+1.55%)
Gold future... 646.20 +7.00 (+1.08%)
30-Year Bond 4.66% +0.00 (+0.02%)
10-Yr Bond... 4.53% +0.01 (+0.22%)






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

Markets Hit Bottom: But Will It Last?
BY FRANK BARBERA, CMT

It has been a wild week in the financial markets, with the sub-prime panic, and Asian contagion sweeping global equities. On Tuesday, equities finally found traction with the S&P 500 closing higher by +21.29 to end at 1395.41, and the widely watched Dow Jones Industrials ending up 154.53 at 12,204.94. For at least the time being, the shelling has stopped. The question now becomes, what’s next?

Will the markets recover and go on to new all time highs? Is the Sub-Prime Mortgage debacle simply an overblown ‘small piece’ of bad credit that will now fade into credit market history as a bad idea where we collectively should have known better? And what about the global financial markets which were supposed to offer diversification in a downturn but actually fell harder and farther? Will they recover?

In our view, a classic trend change pattern is now unfolding before our very eyes. It is a pattern that all should pay heed to do because if I am right, it is leading us into the beginning of the next bear market. In truth, on a secular basis, the real bull market ended in 2000, and what we have seen since has been, and likely will be, a series of alternating cyclical bull and bear moves not unlike the 1970’s. You remember ‘That 70’s Show,’ don’t you? A long secular bull market lasting 24 years from 1942 to 1966 followed by 16 years of “giant sideways” activity, which for the Dow took the shape of a side swinging trading range between 1000 and 500?

-cut-

To be sure, the financial condition of the US economic system is today, the veritable house of cards. Did you see David Walker on 60 Minutes this weekend? The US Comptroller General is panicked about what he sees as a ‘bleak’ fiscal outlook ahead. The funny thing is, no one is arguing with him -- it is a case of the Emperor with no clothes. Everyone knows he is right, but no one wants to talk about it. In a report issued by the White House entitled “2005 Financial Report of the United States Government,” a report issued directly in front of the Christmas Holiday to assure less readership, it was revealed that the 2005 Deficit was really $760 Billion dollars, not $318.50 Billion as originally reported, that the deficit was not 2.6% of Gross Domestic Product as we were frequently told, but really 6.20% of GDP and growing rapidly. Worse, America’s debts and commitments total north of $50 Trillion dollars, not the $8 Trillion most frequently commented. In 2000, our total debts and commitments totaled $20 Trillion, and those have now more than doubled in the last five years. The 2003 Medicare Drug Bill all by itself added over 8 Trillion dollars in unfunded commitments to American taxpayers. Your share of the National Debt is already $375,000 dollars and has doubled in the last five years. It will soon double again, unless radical change comes to pass. Certainly, these numbers are chilling, and to his credit, Comptroller Walker is sounding the alarm in an attempt to give us all pause as we are running up the national credit card at an unprecedented rate.

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

[Ghost Dog]

2. FOREX-Yen climbs as Nikkei slips, investors jittery

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070307:MTFH71628_2007-03-07_06-05-29_T332718&type=comktNews&rpc=44
Wed Mar 7, 2007 1:05am ET144
By Naomi Tajitsu
Excellent cartoon, btw, ozy.

TOKYO, March 7 (Reuters) - The yen edged up against the dollar and other major currencies on Wednesday in cautious trade as a dip in Tokyo shares kept investors concerned that global stock markets were still fragile following their plunge in the past week.

Japan's benchmark Nikkei average <.N225> fell 0.3 percent, just a day after a 1.2 percent rebound raised investor confidence that a weeklong sell-off in riskier assets had run its course and boosted higher-yielding currencies against the yen.

Wednesday's early jump in the low-yielding yen showed that investors remained edgy about holding risky positions such as carry trades, where low-yielding currencies are borrowed to invest in higher-yielding currencies or assets.

"It's still hard to take on significant positions," said Kikuko Takeda, a currency analyst at Bank of Tokyo-Mitsubishi UFJ. "Even though markets calmed a bit yesterday, investors are still not confident that we're out of the woods yet."

The yen had surged to three-month highs against both the dollar and the euro on Monday as investors rushed to unwind carry trades and cover big short positions in the yen. It posted its biggest weekly gain against the euro last week since August 2003 and versus the dollar since December 2005.

The dollar slipped 0.1 percent to 116.35 yen <JPY=> after hitting a session low of 116.21 yen in nervous trading, still up from the three-month low of 115.16 yen. The dollar pulled away from the day's high around 116.90 yen touched when the Nikkei rose nearly 1 percent at the open.

But traders said the yen would likely resume its slide if equity markets continued to find their footing. Continued...

/...

[Ghost Dog]

4. Nikkei off 0.5 pct on US economy worry,realtors up

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070307:MTFH72799_2007-03-07_07-10-37_T347162&type=comktNews&rpc=44
Wed Mar 7, 2007 2:10am ET139
By Aiko Hayashi

TOKYO, March 7 (Reuters) - The Nikkei average fell 0.47 percent on Wednesday as shares of leading exporters such as Canon Inc. (7751.T: Quote, NEWS , Research) were hit by continuing concerns about the outlook for the U.S. economy.

But losses were limited as investors picked up stocks dependent on domestic demand such as real estate firm Sumitomo Realty & Development Co. Ltd. (8830.T: Quote, NEWS , Research).

Shares of Orient Corp. (8585.T: Quote, NEWS , Research) plunged nearly 14 percent to 146 yen after analysts issued relatively bearish comments following the consumer lender's announcement that it would tap shareholders for about 290 billion yen in financial aid.

The Nikkei <.N225> was 79.88 points lower at 16,764.62. The broader TOPIX index <.TOPX> lost 0.17 percent, or 2.94 points, to 1,689.60.

Exporters lost ground on concern that a decline in U.S. demand would crimp the earnings of Japan's leading exporters.

"The scenario that the U.S. economy would see a soft landing has been somewhat destroyed," said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments. Continued...

...

[Ghost Dog]

5. China Mobile leads fall in HK blue chips

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=hongkongMktRpt&storyID=2007-03-07T092550Z_01_HKG351902_RTRIDST_0_MARKETS-HONGKONG-UPDATE-4.XML
Wed Mar 7, 2007 9:25 AM GMT
By Judy Hua

HONG KONG, March 7 (Reuters) - Hong Kong blue chips fell 0.73 percent in volatile trade, led by China Mobile (0941.HK: Quote, Profile , Research) and HSBC (0005.HK: Quote, Profile , Research), as investors sold both issues ahead of index changes next week which will see the weightings of each stock drop.

The index of Hong Kong-listed shares in mainland companies <.HSCE> bucked the broader market trend to rise 0.48 percent, led by financial stocks such as Industrial & Commercial Bank of China (1398.HK: Quote, Profile , Research) and China Merchants Bank (3968.HK: Quote, Profile , Research).

The benchmark Hang Seng Index <.HSI> closed down 139.92 points at 18,918.64, erasing opening gains. Turnover was HK$57.9 billion (US$7.4 billion) compared to HK$61.0 billion on Tuesday.

"ICBC and China Life will be included in the Hang Seng Index next Monday, lowering the weighting of China Mobile and HSBC. Funds are probably selling ahead of the change of the constituents," said Louis Wong, research director at Phillip Securities.

"The market may remain flat for the time being. But the sell-off or the correction has not ended yet. I expect an even lower index level than Monday's for this correction."

At the end of Monday, about HK$1.5 trillion ($192 billion) had been wiped off the market's value since a global equities sell-off began a week ago following the worst fall in a decade by mainland-listed equities <.SSEC>. Continued...

/...

[ozymandius]

3. Today's Reports

10:30 AM Crude Inventories 03/02
Briefing Forecast NA
Market Expects NA
Prior 1421K

2:00 PM Fed's Beige Book

3:00 PM Consumer Credit Jan
Briefing Forecast $10.0B
Market Expects $7.0B
Prior $6.0B

http://biz.yahoo.com/c/e.html

[Ghost Dog]

28. Crude futures rally as oil, product supplies fall

http://www.marketwatch.com/news/story/crude-futures-rallies-62-us/story.aspx?guid=%7B2C489C38%2DBBCF%2D4526%2DBACB%2D23723EE7263F%7D

SAN FRANCISCO (MarketWatch) -- Crude-oil futures climbed Wednesday to touch a high of $62 a barrel after U.S. data showed that supplies of crude declined for the first time in three weeks and distillate and gasoline inventories have been falling for several weeks.

"Import dynamics caused surprises in inventory changes," said Jason Schenker, an economist at Wachovia Corp.

"Lower crude and gasoline imports engendered a surprise draw in crude inventories and a larger-than-expected gasoline draw," he said an in e-mailed note to clients. And "the distillate inventory draw was mitigated by increased imports."
Crude for April delivery was last up $1.16 at $61.85 a barrel on the New York Mercantile Exchange, following a climb to as high as $62.

April reformulated gasoline futures were up 3.17 cents at $1.885 a gallon and April heating oil rose 2.57 cents to $1.773 a gallon.

Crude supplies dropped 4.8 million barrels to 324.2 million barrels for the week ended March 2, the Energy Department reported early Wednesday. They're now down 5.1% from a year ago, it said. Most analysts had expected the data to show a third-weekly increase in supplies.

The American Petroleum Institute's data confirmed the crude decline, pegging the size of it at 6.6 million to total 317.4 million barrels.

At the same time, motor gasoline supplies fell 3.8 million to 216.4 million -- down 3.9% from a year, according to data from the Energy Department.

Supplies of the fuel dropped 7.4 million to 204.4 million, according to the API.
And distillate inventories, which include heating oil, fell 1.3 million barrels, the Energy Department said, taking their total to 123.2 million for last week.

The API posted a fall of 899,000 barrels to 127.8 million.

/...

[UpInArms]

32. Beige Book

03. Beige Book: Inflation pressures 'little changed'
2:00 PM ET, Mar 07, 2007 - 18 minutes ago

04. Beige Book: Manufacturing expanding in most districts
2:00 PM ET, Mar 07, 2007 - 18 minutes ago

05. Beige Book: Housing weak, some signs of stabilization
2:00 PM ET, Mar 07, 2007 - 18 minutes ago

06. Fed's Beige Book sees modest growth, some slowing
2:00 PM ET, Mar 07, 2007 - 18 minutes ago

[UpInArms]

34. Jan Consumer Credit up $6.4 bln (below concensus)

10. U.S. Jan. nonrevolving debt up 4.4%
3:00 PM ET, Mar 07, 2007 - 58 minutes ago

11. U.S. Jan. credit-card debt up 1.1%, slowest in 10 months
3:00 PM ET, Mar 07, 2007 - 58 minutes ago

12. U.S. Jan. consumer credit up $6.4 bln or 3.2% annualized
3:00 PM ET, Mar 07, 2007 - 58 minutes ago

[ozymandius]

6. Oil prices rise in Asian trading

SINGAPORE - Oil prices edged higher in Asian trading Wednesday ahead of U.S. government inventory data expected to show gasoline stocks fell for the fourth week in a row.

"Many traders are sidelining ahead of (U.S.) data due later," said Koichi Murakami, an analyst with brokerage Daiichi Shohin in Tokyo.

Light, sweet crude for April delivery rose 4 cents to $60.73 a barrel in electronic trading on the New York Mercantile Exchange midmorning in Singapore.

-cut-

Data from the U.S. Department of Energy was expected to show a 1.4 million-barrel fall in gasoline stockpiles and 2.3 million-barrel slide in distillate stockpiles, which include diesel and heating oil, according to a survey of analysts by Dow Jones Newswires. Crude oil stockpiles are expected to build by 2 million barrels.

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

[ozymandius]

7. Official: Firms examining Chrysler books

DETROIT - Daimler-Benz AG paid $36 billion for the company in 1998, but industry analysts now place its value at anywhere from nothing to $13.7 billion.

As two private equity firms examine Chrysler's books and consider making offers to buy the company this week, they'll be grappling with a question whose answer is uncertain: How much is the automaker worth?

Estimates vary with the value placed on assets such as brand names, factories and materials, all weighed against Chrysler's estimated $19 billion long-term liability to pay health care benefits for unionized retirees.

Some analysts say the liability exceeds the value of the assets, meaning that German parent DaimlerChrysler AG would have to pay someone to take Chrysler. Others say the company is worth more to the right buyer.

http://news.yahoo.com/s/ap/20070307/ap_on_bi_ge/chrysler

[ozymandius]

8. Daimler CEO says Chrysler won't be auctioned: paper

GENEVA (Reuters) - DaimlerChrysler AG will not auction off loss-making U.S. division Chrysler and could decide to keep the business at the end of a strategic review, Chief Executive Dieter Zetsche told a German paper.

The possible divestment of Chrysler "will not take the form of an auction process," Zetsche was quoted as telling German paper Die Welt at the Geneva car show in a story published on Wednesday.

Two sources familiar with the situation told Reuters last month that information on Chrysler would be offered selectively to potential buyers so that DaimlerChrysler avoids an outright auction in favor of a more flexible sale process.

This left open the prospect that no bid might be strong enough to complete a deal, both sources said.

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=OBR&Date=20070307&ID=6579992

[ozymandius]

9. Ford Motor recalls pickups, SUVs

-cut-

Ford said the latest recall involved 2003 versions of the F-150, F-250, F-350, F-450 and F-550 Super Duty truck, the Ford Excursion SUV and the Lincoln Blackwood pickup.

Ford officials said Monday that an internal check found the switch systems in some early 2003 trucks and SUVs and the company acted to allow owners to get it repaired. The switch system could corrode over time, overheat and ignite.

-very short-

http://www.mercurynews.com/drive/ci_5365187

[UpInArms]

10. dollar watch

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

Last trade 84.05 Change +0.01 (+0.01%)

Is the Carry Trade Liquidation Over?

http://www.dailyfx.com/story/special_report/special_reports/Is_the_Carry_Trade_Liquidation_1173219318998.html

Volatility made a grandiose entrance last week as the Shanghai Composite Index rocketed 8.8 percent lower in a single session, unleashing a wild unwind of carry trades that resulted in the biggest weekly gain in the Japanese Yen against the US dollar in 14 months while cross pairs like NZDJPY plummeted more than 9 percent. However over the past 24 hours, the rally in the Japanese Yen has eased back as global equities stabilized, leaving many traders wondering: Is the carry trade liquidation over? Has USDJPY bottomed out?

To attempt to answer these questions, involves looking back at the market’s most memorable period of carry trading unwinding. Between August and October of 1998 the Japanese Yen rose 20 percent against the US dollar. At the time, the global financial markets were in a precarious position amidst a perilous sequence of events. First, in August 1998, Russia defaulted on international debt – the event best known for bringing Long Term Capital Management (LTCM) to its knees. The news sparked a sell off in the equity markets as major players dumped their assets to cover margin calls and rapidly unwound yen carry trade shorts, propelling the yen 9 percent higher in process. Risk aversion skyrocketed, preventing any sort of meaningful rebound in USDJPY. A few months later, the vulnerable USDJPY pair rapidly turned lower once again on relatively benign, but yen bullish reports that the government had come up with a plan to fix the problematic banking sector. Over the course of the following week, the yen racked up an additional 13 percent in gains against the US dollar as the equity markets toiled in fear.



Will the Yen Relive 1998?
Since February 27th, the US dollar has fallen over 5 percent against the Japanese Yen. While the combination of global equities in a selling frenzy and a massive amount of yen buying may warrant a bit of déjà vu for traders who felt the crunch in 1998, the situation is actually quite different now. First off, the liquidation was not crisis induced. Instead, the sell off of Chinese shares came the day after the Shanghai index had hit an all time high and was initiated by rumors that the government would impose harsh capital gains taxes on stock investments, which China vehemently denied. While equity markets around the world may indeed be a bit overbought and prime for a correction, the event was not triggered by something as severe as the default of a systematically important country like Russia.

...more...

Dollar Stifled By Weak Pending Home And Factory Orders Data

http://www.dailyfx.com/story/currency/eur_news/Dollar_Stifled_By_Weak_Pending_1173205085587.html

The fundamental weight of the economic calendar’s offerings have tapered off somewhat after yesterday’s market-worthy ISM services report hit the wires. For Tuesday, all of the New York session’s top indicators were either revisions or lagging to previously released reports.

Looking to price action, the greenback was largely mixed in the majors. After breaking in the dollar’s favor over the past few sessions, EURUSD moved into congestion between 1.3135 and 1.3080. Mirroring the inactivity, USDCHF bounced around its own 60 point range while stubbornly holding below 1.2250. The British pound worked up from Monday’s lows around 1.9185, with a ceiling tested at 1.9310. Finally, a break in the seemingly unending yen rally allowed USDJPY to rally 150 points to 116.70 before the pair was relegated to a 50-point range.

Quality over quantity is once again the axiom for fundamental traders. Though this morning’s economic docket tendered more indicators for the ever-evolving valuation of the almighty dollar, each was handicapped in one way or another. Arguably, the greatest potential for market impact rested with the Commerce Department’s factory orders gauge for January. According to the government body’s numbers, new orders received by manufacturers dropped a considerable 5.6 percent – the biggest monthly decline in six-and-a-half years. On paper, such a drop would hit even the most ardent bull; but the market was well prepared for such fireworks. Other January numbers, specifically the ISM’s manufacturing activity report and the government’s durable goods orders gauge, had already desensitized the market with weak readings of their own. Just like the previously released numbers, the broad contraction in demand came as companies attempted to work off excess inventories – especially in the construction and automotive industries. However, under the same reasoning, the stronger than expected reading in the February ISM has signaled to economists that the factory report could post similar numbers the next time it is released.

Elsewhere, the import of the session’s other releases was considerably scaled down. The National Association of Realtors printed a 4.1 percent drop in pending home sales through January. While this particular indicator is seen as a leading indicator since it is based on contract signings, it is considered inferior to new home sales. This relationship is particularly true after new residential purchases dropped the most in thirteen years in its most recent report. On the inflation front, the final reading of fourth quarter nonfarm productivity and unit labor costs roused the steadfast hawks. Productivity, a measure of output per hour from the average worker, slowed from its initially reported 3.0 percent gait to 1.6 percent. At the same time, employee costs for the same period accelerated more than expected to 6.6 percent. Conversely, the labor costs report was considered a one-off, influenced by high bonuses. Another event that should not be overlooked was an interview given by former Federal Reserve Chairman Alan Greenspan. Contradicting current Fed Chief Ben Bernanke’s belief that the economy will recover this year, Greenspan said that he sees a one in three chance that the US economy is heading for a recession following its sixth year of recovery. These eyebrow raising comments follow his warning only a week ago that he could not rule out a recession for the world’s largest economy by the year’s end.

...more...

[Tace]

11. Amass Huge Stores Of Gold, Silver & Large-Caliber Armaments -- We Are Freaking Doomed (Mogambo)

by Richard Daughty, the angriest guy in economics -- World News Trust

March 7, 2007 -- Total Fed Credit expanded by a measly $1.8 billion last week, made even more insignificant when compared with the big news of stock markets around the world going down a hefty percentage. The commentary is usually about "what caused it?" My answer, in response, is precise; "Who the hell knows?"

snip

And don’t get me started on the "good intentions" of government, which is best summed up by a terrific quote sent to me by my ol' buddy Phil S., which won some kind of contest, and which was originally presented as a definition of "Political Correctness," but it clearly applies to most of what government does these days. So whatever it is, it "is a doctrine fostered by a delusional, illogical liberal minority, and rabidly promoted by an unscrupulous mainstream media, which holds forth the proposition that it is entirely possible to pick up a turd by the clean end". Ugh.

***

Mogambo sez: Ahh, the serenity of gold! I love having an asset that would rise to the moon if the government and Federal Reserve were not actively suppressing the price, as the history of successful perpetual price suppressions is the same as the history of successful perpetual anything coercive; zip point zip.

So, my Adorable Mogambo Cherub (AMC), use history to your advantage for a change. You'll be very glad you did, and very sorry you didn't if you don't, as another Timeless Mogambo Lesson (TML) is that another investing constraint is that, "Too late smart and too soon old!" becomes very meaningful as time just ticks, ticks, ticks away. Tick. Tock. Tick. Tock.

more

http://www.worldnewstrust.com/index.php?option=com_content&task=view&id=1476&Itemid=10204

[UpInArms]

12. Mortgage Crisis Spirals, and Casualties Mount

http://www.nytimes.com/2007/03/05/business/05lender.html?ei=5088&en=8b1c3efaa3457cbc&ex=1330750800&partner=rssnyt&emc=rss&pagewanted=all

Even in affluent Orange County, Calif., the growing wealth of executives and brokers in the booming mortgage industry was hard to miss.

For Kal Elsayed, a former executive at New Century Financial, a large lender based in Irvine, driving a red convertible Ferrari to work at a company that provided home loans to people with low incomes and weak credit might have appeared ostentatious, he now acknowledges. But, he says, that was nothing compared with the private jets that executives at other companies had.

“You just lost touch with reality after a while because that’s just how people were living,” said Mr. Elsayed, 42, who spent nine years at New Century before leaving to start his own mortgage firm in 2005. “We made so much money you couldn’t believe it. And you didn’t have to do anything. You just had to show up.”

<snip>

New Century’s stock price, which seemed to mirror the trajectory of the subprime business, peaked at nearly $66 a share in December of 2004 and traded in the $40s most of last year; on Friday, it was trading at $11 a share after the market closed. In a series of sales from August to November, two of the company’s founders sold shares for an average price of about $40 a share, for a total profit of $21.4 million.

It is not known whether the stock sales by the founders are among the sales being examined by federal investigators. Some of them had been part of scheduled stock sales that are often used by executives to diversify their portfolios. But some of the sales occurred on the same day that the executives entered the plans. A New Century spokeswoman, Laura Oberhelman, said that executives declined further comment.

<snip>

In the late 1990s, New Century narrowly survived accounting concerns and a scare in the bond market after Russia’ s default in 1998. It pulled through thanks to an investment by U.S. Bancorp, a bank based in Minneapolis.

...more...

that's spooky - that's 2 articles about different things referring back to the LTCM default....

[Roland99]

14. Was it Paulson that said the other day that sub-prime crisis was "contained"?

Yeah, HSBC is writing off $11 billion.

Sounds contained to me.

[UpInArms]

18. Fremont won't fund home loans in process

http://www.reuters.com/article/bondsNews/idUSN0719961420070307

NEW YORK, March 7 (Reuters) - Fremont General Corp. (FMT.N: Quote, Profile, Research), which stopped making new home loans after agreeing with a U.S. bank regulator to stop risky lending, said it will also not fund loans in process.

Tuesday's decision by the subprime lender will make it more difficult for people who have contracted to buy homes to close, because they will need to quickly find alternative financing, perhaps at less favorable terms.

"We will fund loans ONLY if the LOAN IS CLOSED (signed) prior to the close of business Monday 3/5/07 with all credit conditions satisfied," Fremont said on its Web site. "Loans in process in which documents have not been signed ... will be declined for the following reason 'Don't Grant Credit on these Terms and Conditions.'"

Santa Monica, California-based Fremont last week said it hired Credit Suisse to help sell its subprime unit. The Federal Deposit Insurance Corp. ordered the lender to stop making improper mortgages.

On Monday, Fremont ceased residential lending, and put "many" of the 2,400 workers in its subprime unit on paid leave. It said it is continuing to accept deposits and make commercial loans.

...more...

This does not sound very "contained" to me.

[fed-up]

22. I am posting this to Gen Disc-people are going to be Sh*t out of luck nt

[AnneD]

24. I swear folks....

this is how it started unraveling in Houston in our S&L and Real Estate bust. Make sure the decks are cleared and things tied down. Folks are starting to wake up.

[kineneb]

29. yup

brown stuff meets rapidly rotating object

...time for haz-mat suit
:hide:

[UpInArms]

38. FDIC sanctions Fremont over subprime loans

http://www.reuters.com/article/bondsNews/idUSN0738684420070307

WASHINGTON, March 7 (Reuters) - The U.S. Federal Deposit Insurance Corporation on Wednesday issued a cease-and-desist order against Fremont General Corp. (FMT.N: Quote, Profile, Research) because of its subprime mortgage and commercial real estate lending practices.

The FDIC, a banking regulatory agency, said Fremont was operating without effective risk management policies and procedures and was marketing loans that substantially increased the likelihood that its low-income borrowers default.

Fremont, based in Santa Monica, California, agreed to the order without admitting or denying any wrongdoing, the FDIC said in a statement.

[Ghost Dog]

31. & their share price rose

in London & Hong Kong (at least momentarily). :eyes:

[OrangeCountyDemocrat]

19. Boiler Room

Anyone see that film? The first couple of paragraphs reminds me of that movie.

[wordpix]

35. can anyone explain: is this good for those considered "prime market" who are looking to buy?

Just wondering. I have a reasonably good job and good credit and I'm in the market for a small house or condo in a very expensive area. A friend of mine in real estate (owner and broker) said I should wait to buy because prices are going down due to this sub-prime debacle.

In my area of the NE, prices are leveling but not taking a dive.

[texpatriot2004]

13. K & R nm

[UpInArms]

15. pre-opening blather

09:15 am : S&P futures vs fair value: -3.7. Nasdaq futures vs fair value: -4.8.

09:00 am : S&P futures vs fair value: -3.4. Nasdaq futures vs fair value: -4.5. Still shaping up for the indices to open modestly lower as concerns that stocks rose too far to fast yesterday leave some questioning the sustainability of such sizable gains. Since the huge rally yesterday was based as little on fundamentals as was last week's sell-off, investors taking a bit of breather isn't overly disconcerting. However, with investors still looking for confirmation that a bottom has been put in place, an overly aggressive wave of consolidation today will upset that notion.

08:30 am : S&P futures vs fair value: -3.8. Nasdaq futures vs fair value: -5.5. The S&P 500 and Nasdaq 100 futures are still trading below fair value as a smaller than expected read on monthly jobs growth does little to quell concerns about the pace of economic growth. Within the last 15 minutes the monthly ADP employment report showed that an estimated 57,000 new private jobs, (or 64,000 nonfarm jobs) were created in February, the fewest since July 2003. Economists expect Friday's more closely-watched and well-established nonfarm payrolls figure to check in around 100,000.

08:00 am : S&P futures vs fair value: -4.7. Nasdaq futures vs fair value: -5.8. The stock market is slated to open on a negative note. That isn't entirely surprising, though, given that there is often a tendency for some early profit taking after a day in which material gains were posted. The Dow, S&P 500 and Nasdaq logged their best performances of the year Tuesday, averaging a gain of 1.6%. While yesterday's broad-based rally appears to be a step in the right direction, the lack of market-moving news items so far this morning is stalling follow-through momentum.

06:21 am : S&P futures vs fair value: -3.4. Nasdaq futures vs fair value: -5.8.

06:20 am : FTSE...6140.20...+1.70...+0.0%. DAX...6607.81...+12.81...+0.2%.

06:20 am : Nikkei...16764.62...-79.88...-0.5%. Hang Seng...18918.64...-139.92...-0.7%.

[UpInArms]

16. ADP Report (employment) index weakest since July 2003

18. U.S. Feb. ADP services-producing jobs up 100,000
8:15 AM ET, Mar 07, 2007 - 1 hour ago

19. U.S. Feb. ADP goods-producing jobs fall 43,000
8:15 AM ET, Mar 07, 2007 - 1 hour ago

20. U.S. Feb. ADP index weakest since July 2003
8:15 AM ET, Mar 07, 2007 - 1 hour ago

21. U.S. Feb. ADP employment index up 57,000
8:15 AM ET, Mar 07, 2007 - 1 hour ago

[Roland99]

21. What an awesome recovery we're in!!

:sarcasm:

[AnneD]

17. Morning Marketeers....

:donut: and lurkers. I'd like to give you a 'ground report' about something I have more than a passing acquaintance with....the VA and Veterans health care. Being both a Vet and a Nurse, I feel that I have a bit of knowledge in this arena.
First, the care that the VA gives Vets has always been less than ideal since I have been in (1978). Our VA hospital here in Houston is a bit of an exception. It is located in the medical center, and frankly, if you want to attract Dr. and Nurses in the med center-you have to bring your A game. It has some problems-but not as severe as other VA's.
Walter Reed has always had a good rep-I mean this is where many Congressmen and more than a few presidents receive care. I was in contact with A Nurse there for a while and I was shocked down to my skivvies when Walter Reed was on the base closure list. The Nurse that was there told me that they were cutting back. Now, not all the Nurses there are enlisted. You think civilian hospitals have trouble getting Nurses-try the military. They keep upping the enlistment age that they will accept Nurses-at last look it was 45. Anyway, my friend was demoralized as she loved Walter Reed. They were cutting back staff and staff hours and Nurses started looking for other, more stable jobs. The work loads were starting to get a bit outrageous, remember this was just at the start of the was-when we were still greeted as liberators.
She wanted to stay but could not get either hours or working conditions that were reasonable so she and others headed for the exits. I heard but cannot verify that they have been relying more and more on traveling or contract Nurses and subcontractors-which is not the best for the Veterans.
When you are in the military and die-they give you a hell of a send off. It is easy to do and we great at honouring the dead. There is a noble victory in death. But if you come back wounded, you are proof of our weakness, our human-ness, and the government just doesn't want to deal with you. They have been short changing Vets since WWII to the point that we are today. Vets and families of Vets have been complaining for some time now. The extra load from the Wars in Iraq and Afghanistan have been the straw that broke the camel's back. They deserve the best care we can give, barring that they deserve at least acceptable, decent care.

Happy hunting and watch out for the bears.

[Roland99]

23. Welcome to the world of Norquist (drowning the gov't in a bathtub)....

and replacing the infrastructure with more costly and less effective private solutions.


wheeeee!!!

[billym99]

20. NON-PAYMENT OF WANTA FUNDS CAUSED STOCK LAST STOCK DROP

The latest update on the Leo Wanta affair has come out this morning and reveals the real cause for the recent stock drop. The Chinese had originally had a "target" of DOW 7000 but a bribe (from the Wanta money) of $2 trillion got them to call off their economic warfare, for the time being at least.

You can read the latest blockbuster update from Chris Story here:

http://www.rumormillnews.com/cgi-bin/forum.cgi?read=100561

For those who are unfamiliar with this incredible story of financial crimes at the highest level of the Bush administration you can access the history of it at Story's World Reports:

http://www.worldreports.org/news

The Chinese are very angry that the Wanta plan has not been implemented yet, despite being agreed to by President Bush last May. Now it seems the Queen of England is also very angry and has severely reprimanded Sec. Paulson about the endless delay in the transfer of the Wanta funds, which transfer is intended to alleviate the U.S. debt debacle.

This is a blockbuster story of financial crimes ongoing, a story which has been totally banned in the corporate controlled U.S. media as well as their sites on the Internet. As I am new here at DU I don't know to what extent it has been covered here.

The non-payment of the Wanta funds is now affecting the stock markets generally and causing many countries to completely lose trust in "the full faith and credit" of the United States. It is a difficult story to grasp and I will leave it to readers to follow the above links rather than attempt an explanation here.

The link to the original of the latest update at World Reports is here:
http://www.worldreports.org/news/52_washington_criminali

[Ghost Dog]

25. Bourses keep gains as bid hopes lend support

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39148.4899189815-891214279&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

European stocks closed higher on Wednesday thanks to a spell of fresh merger and acquisition activity. The FTSE Eurofirst 300 closed up 0.5 per cent to 1,467.9, Frankfurt’s Xetra Dax added 0.3 per cent to 6,617.8, the CAC 40 in Paris was 0.3 per cent higher 5,455.1 and the FTSE 100 in London rose 0.3 per cent to 6.156.5. Volkswagen, the German carmaker, took a step closer to its hope of integrating the European truckmaking sector after it raised its stake in Sweden’s Scania to just over 20 per cent of share capital and 35 per cent of voting rights. VW, which also holds a 29.9 per cent stake in German truckmaker MAN, declared an interest in a European merger when MAN bid for Scania last year. VW would benefit strongly from such an alliance, by finding a new home for its Brazilian truck unit and its own commercial vehicles division. Shares in Volkswagen gained 2.4per cent to €96.90, while Scania added 3.7 per cent to SKr530 and MAN gained 3.5 per cent to €82.01.Bid speculation lifted Dutch bank ABN Amro 1.3per cent to €27.13 as an increasing chorus of hedge fund investors suggested the bank would deliver better shareholder returns if it broke up or merged with another large group. Toscafund, a London-based fund manager which owns about 1 per cent, said ABN had failed to deliver acceptable returns, and said the company would benefit from a merger with a company which has “a proven track record in adding value”. The Children’s Investment Fund has said the bank should break up.

[Ghost Dog]

26. FTSE makes small gains as oil and property stocks rise

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39148.486400463-891214056&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

London equities rediscovered a measure of momentum on Tuesday, as oil stocks strengthened in line with firmer crude prices and upbeat broker comment lifted property stocks. The FTSE 100 ended 0.3 per cent higher at 6,157.4, despite 10 constituents trading without further rights to their latest dividend payments. A slew of strong earnings news helped the mid-cap FTSE 250 outperform, with a 1.5 per cent advance to 11,179.1. Property companies topped the blue-chip leaderboard after JP Morgan said British Land and Great Portland Estates as its top pick in the European property sector. British Land rose 3.4 per cent to £15.19 whist Great Portland made gains of 4.4 per cent to 755½p. Firmer crude prices helped BP to a gain of 1.1 per cent at 517½p, with Royal Dutch Shell up 0.7 per cent to £16.51.

[Ghost Dog]

27. Swiss Shares Close On Solid Ground

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

The Swiss Market Index closed Wednesday's lackluster session in the black with sharp gains in Nestle and ABB lending strong support.

The Swiss Market Index closed 102.83 points or 1.17% higher at 8,878.43 with 22 gainers, 2 decliners and one stock unchanged. The broader Swiss Performance Index rose 82.52 points or 1.19% to 7,040.07.

Nestle closed the session 1.79% higher at CHF 468.00 on speculation that the food giant might be interested in Barry Callebaut's US subsidiary Brach's. Holcim jumped 2.1% to CHF 121.70 after ZKB raised their price target on the cement maker to CHF 127.90. Elsewhere among top performers, ABB advanced 2.04% to CHF 20.05, Syngenta added 1.99% to CHF 220.30, Givaudan climbed 2.04% to CHF 1,100 and Ciba rose 1.86% to CHF 79.20.

Lonza remained flat at CHF 110.10 after the global life sciences company today announced that it has granted UCB a non-exclusive, worldwide license to their GS Gene Expression SystemTM (GS: glutamine synthetase). The Research Evaluation Agreement covers the use of the GS Gene Expression SystemTM for research and development purposes.

The SMIs' heavyweights closed the session in the black: banking group UBS gained 1.07% to CHF 71.15, Credit Suisse moved 1.96% higher at CHF 86.00, Novartis firmed 0.43% to CHF 70.40 and Roche closed 1.02% higher at CHF 218.20 after after the group's US subsidiary Genentech and joint-venture partner Tercica have resolved their litigation against Insmed in the US and the UK over growth-failure drug Iplex.

/..

[UpInArms]

30. FedSpew - pumpin' it up time?

13. Moskow says housing to be drag through first half of '07
1:00 PM ET, Mar 07, 2007 - 45 minutes ago

14. Moskow sticks with forecast of pickup in growth in '07-'08
1:00 PM ET, Mar 07, 2007 - 45 minutes ago

15. Moskow sees hints economy firming in recent weeks
1:00 PM ET, Mar 07, 2007 - 45 minutes ago

16. Moskow says core inflation readings have been 'a bit better'
1:00 PM ET, Mar 07, 2007 - 45 minutes ago

17. Moskow says volatile markets do add uncertainty to outlook
1:00 PM ET, Mar 07, 2007 - 45 minutes ago

18. Moskow sticks with view more rate hikes may be needed
1:00 PM ET, Mar 07, 2007 - 45 minutes ago

19. Fed's Moskow: Inflation still top risk despite market drop
1:00 PM ET, Mar 07, 2007 - 45 minutes ago

20. Moskow: Recent economic data has been on the soft side
1:00 PM ET, Mar 07, 2007 - 45 minutes ago

[ozymandius]

33. halfway through the Witching Hour

3:35
Dow 12,223.53 Up 15.94 (0.13%)
Nasdaq 2,378.49 Down 6.65 (0.28%)
S&P 500 1,395.85 Up 0.44 (0.03%)
10-Yr Bond 4.497% Down 0.031
NYSE Volume 2,754,176,000
Nasdaq Volume 1,705,724,000

3:30 pm : The major averages remain mixed going into the close, but it remains anyone's guess as to how today's action will finally shake out. As has been the case recently, late-day selling interest is creeping back into the market.

Overall, though, the relatively narrow trading range for the indices remains somewhat of a victory for the bulls considering the broader gyrations that have roiled the market since the global sell-off eight days ago. DJ30 +21.47 NASDAQ -4.32 SP500 +1.76 NASDAQ Dec/Adv/Vol 1437/1541/1.60 bln NYSE Dec/Adv/Vol 1255/1973/1.30 bln

[loudsue]

36. So...was there a closing bell?

How did the story end today??

:hi: Thanks, Marketeers, for all you do!

:kick::kick::kick::kick::kick:

[UpInArms]

37. the final numbers and yada

Dow 12,192.45 15.14 (0.12%)
Nasdaq 2,374.64 10.50 (0.44%)
S&P 500 1,391.97 3.44 (0.25%)
10-Yr Bond 4.497% 0.031

NYSE Volume 3,181,058,000
Nasdaq Volume 2,073,120,000

4:20 pm : For the first time in over a week, volatility was relatively absent. However, after snapping a three-day losing streak in noticeable fashion a day earlier and being whipsawed since the global sell-off on February 27, it wasn't surprising to see investors look a bit fatigued Wednesday.

Since yesterday's huge rally was based as little on fundamentals as was last week's meltdown, and indicative of short covering activity amid an increasingly pessimistic mindset, today's breather wasn't overly disconcerting. In fact, some semblance of stabilization provides some hope that a bottom may have been put in place.

The absence of any scheduled economic data, until the Fed's Beige Book late in the day, or notable earnings reports, kept follow-through efforts in check throughout most of the session. Some new evidence suggesting the economy may be slowing more than anticipated, however, eventually provided enough fodder for the bears to question the sustainability of yesterday's broad-based bounce and get in the last word.

Before the bell, ADP reported that only 57,000 new private jobs (or 64,000 nonfarm equivalent jobs) were created in February. Since the market is more concerned with growth than inflation, especially following several assertions from former Fed Chairman Greenspan about a possible recession later in the year, the ADP payrolls number checking in at the lowest level since July 2003 raised some anxiety that economists will have to downwardly revise their estimates for Feb. nonfarm payrolls. The current consensus stands at 100,000.

Even though the monthly ADP report lacks credibility, as its miss over the last six months averages 78,000, or nearly twice the 40,000 miss of the more closely-watched data compiled by the Labor Dept., we believe a payroll gain on Friday as low as 50,000 would weigh heavily on a market now increasingly focused on negative items.

At 2:00 ET, the Fed showed that most of its 12 districts reported modest growth, but that several districts also noted some slowing. That took some steam out of what was finally shaping up to be a respectable extension of Tuesday's rally.

Further underscoring nervousness about the pace of economic growth was a subsequent flight-to-quality bid in bonds. The 10-year note finished up 8 ticks, pushing the yield below 4.50%; but that did little for the rate-sensitive Financials sector. After pacing the way yesterday with an impressive 2.1% advance, that sizable gain incited some profit taking and removed some notable leadership.

Energy was the only sector to finish in the plus column, and that was in sympathy with surging oil prices, which near $62/bbl are bearish for stocks. Crude for April delivery closed up 1.9% near $61.85/bbl following an unexpected decline in weekly crude supplies and a large drawdown in gasoline inventories. That provided another excuse to take some money off the table, along with a candid remark from homebuilder DR Horton's CEO who was quoted as saying all 12 months in 2007 are "going to suck."DJ30 -15.14 NASDAQ -10.50 SP500 -3.44 NASDAQ Dec/Adv/Vol 1728

[UpInArms]

39. Greenscum says carry trade has limited room to run (does he get paid for this shit?)

http://today.reuters.com/news/articlenews.aspx?type=businessNews&storyid=2007-03-07T191859Z_01_N07241060_RTRUKOC_0_US-MARKETS-FOREX-YEN-GREENSPAN.xml&src=rss

NEW YORK (Reuters) - A popular investment strategy where investors borrow cheaply in yen to buy higher-yielding assets elsewhere can only continue for so long, former Federal Reserve Chairman Alan Greenspan said on Wednesday.

The strategy, known as the yen carry trade, is still going strong, but "at some point it's got to turn," Greenspan told a trading technology conference.

Japanese patriotism was partly behind the pattern, he said. Government debt is owned predominantly by domestic investors in Japan, despite offering some of the lowest rates in the world.

"The people who are getting the carry trade spread are being subsidized by Japanese consumers," Greenspan added.

The yen edged up against the dollar <JPY=> and the euro <EURJPY=> after his comments.

It was not the first time Greenspan had moved markets. Last week, he took investors by surprise by saying he saw a chance that the U.S. economy could slip into recession this year.

...more...