STOCK MARKET WATCH, Wednesday January 7

[ozymandius]

Source: du

STOCK MARKET WATCH, Wednesday January 7, 2009

DAYS REMAINING UNTIL BUSH IS GONE = 13

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.
$1 USD = EUR 1.06678
$1 USD = JPY 116.6200

In recognition of those who predicted the Dow's precipitous return on Bush values (9/29/08): JuneBourder and AnneD

AT THE CLOSING BELL ON January 6, 2009

Dow... 9,015.10 +62.21 (+0.69%)
Nasdaq... 1,652.38 +24.35 (+1.50%)
S&P 500... 934.70 +7.25 (+0.78%)
Gold future... 866.00 +8.20 (+0.96%)
30-Year Bond 3.07% +0.03 (+0.95%)
10-Yr Bond... 2.51% +0.02 (+0.68%)

---

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

Market Conditions During Trading Hours

GOLD,EURO, YEN, Loonie and Silver

---

Handy Links

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---

Read more: du

[ozymandius]

1. Market WrapUp

Looking Ahead: Will Platinum Bottom in 2009?
BY FRANK BARBERA, CMT

In the last few weeks, I have tried to help investors keep an even-handed view of the chaos which has unfolded in the capital markets. To that end, for nimble traders, there have been any number of excellent trading positions, some of which I have highlighted in my recent work on both energy and oil services. I have also tried to point out that bearish economic news notwithstanding, the stock market was overdue to move still higher and has come through nicely over the last few days. Since my last update through today’s high, the S&P has gained an additional 4.08%, with Crude Oil moving up 25% since my 12/23/08 update (USO from $30 to $37), while Oil Service stocks have quickly moved to the top of the best performers list with SLB up 28%, RIG up 28.66% and OIH up 29.85% all since my 12/23/08 update, “Oil Services in the Trash Bin?” Not bad gains for a year, let alone a period of just 9 trading days!

At this point, while both Oil and the Oil Service stocks probably have moderately higher prices still ahead, I suspect that the lion’s share of the initial bounce off the lows has been seen. While both the commodity and the equities may manage some slightly higher highs in the days ahead, the ‘easy money’ as it were, has now probably been made. For the stock market, my overall sense of things at this point is that while the short term and medium term trends are still up, and prices are likely to press toward the 970 to 980 area on the S&P, once that zone is reached, the upward progress in the market will become more and more difficult with a more important market peak due in later this month. It would not surprise this writer to see equity prices peak the rally very close to, or just after, the Obama inauguration, putting a more important medium term top in the S&P out to around 1/20/09. Overall, I remain of the opinion that a primary bear market remains in force for global equity markets, and that the early going in 2009 (post-Jan, especially February thru June), is likely to be a difficult period of time for investors.

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

[ozymandius]

2. Today's Report

10:35 Crude Inventories 01/02
Briefing.com NA
Consensus NA
Prior NA

http://www.briefing.com/Investor/Public/Calendars/EconomicCalendar.htm

[UpInArms]

42. U.S. deficit to total $1.2 trillion this year, CBO estimates

01. CBO sees slow recovery in 2010, with 1.5% real GDP growth
10:06 AM ET, Jan 07, 2009

02. CBO says unemployment will top 9% in early 2010
10:06 AM ET, Jan 07, 2009

03. Economic stimulus plan will add to deficit, CBO says
10:04 AM ET, Jan 07, 2009

04. CBO says recession will last 'well into 2009'
10:04 AM ET, Jan 07, 2009

05. U.S. deficit to total $1.2 trillion this year, CBO estimates
10:03 AM ET, Jan 07, 2009

[UpInArms]

43. ADP shows 693,000 jobs lost in December

http://www.marketwatch.com/news/story/ADP-data-show-693000-private/story.aspx?guid=%7B11A2598F%2D2D9D%2D48D2%2DA934%2D144BA5E1BB9C%7D

WASHINGTON (MarketWatch) -- U.S. private-sector firms shed 693,000 jobs in December, far worse than expected, according to the ADP employment index released Wednesday.

The report paints "a shockingly weak picture of the labor market," said John Ryding and Conrad DeQuadros, economists at RDQ Economics. The nation's labor market is on track for the largest quarterly decline since 1945, they said.

The methodology for the ADP index has been revised with the aim of making it a better fit with pivotal government figures to be released on Friday.

Economists currently expect nonfarm payrolls to have fallen by 500,000 in December, although several economists updated their projections following the ADP release. See Economic Calendar.

"We await Friday with trepidation," wrote Ian Shepherdson, chief domestic economist for High Frequency Economics. He said to expect that nonfarm payrolls contracted by about 700,000, which would be the biggest drop in 59 years.
The ADP report helped send U.S. stock markets lower on the open.

Private employment in the services sector fell by 473,000 last month, while employment in the goods-producing sectors fell by 220,000, ADP said.

Large firms cut 91,000 jobs, medium-sized firms shed 321,000 jobs and small firms reduced their payrolls by 281,000 jobs.

...more...

what? the ADP is no longer a monthly report for the markets now that it has attempted to reconcile its crappy numbers into something real?

[Dr.Phool]

45. Maybe all their customers, or whoever paid them for their crap surveys,

Decided that they weren't going to pay for wrong numbers anymore.

[AnneD]

65. The real unemployment numbers have been massaged ....

beyond belief ever since Reagan.

"The methodology for the ADP index has been revised with the aim of making it a better fit with pivotal government figures to be released on Friday."

I discovered that during the crash of the 80's. Once I stopped drawing that unemployment check-I didn't count-even though it was another 6 months of active searching before I found just a part time job. That was what drained my retirement account the first time. It was another year before I found full time work.

Edited to add-to add insult to injury....I owed the IRS taxes for both my unemployment AND having to break into my retirement account to survive. The whole thing sucked donkey balls and turned me into a staunch dem.

Most accurate quote from a gov report.

[Dr.Phool]

67. Back then, I got laid off for 2 solid years.

But, I had a good part-time job that paid really well, and allowed me to keep my unemployment. Plus, I still had my employers health insurance, another good bonus that comes with a union job.

Throw in the free cheese, and what more could I ask for?

[AnneD]

68. All I ask for was

shelter, food, and shelter and I barely had that. Toward the end I was living off the kindness of strangers and the good will of friends-that is what got me through.

[ozymandius]

3. Oil dips as traders weigh demand signs, Gaza clash

SINGAPORE – Oil prices dipped below $48 a barrel Wednesday in Asia as investors weighed tensions in the Middle East and more bad U.S. economic news suggesting slowing crude demand.

Light, sweet crude for February delivery fell 69 cents to $47.91 a barrel in electronic trading on the New York Mercantile Exchange by midafternoon in Singapore. The contract slipped 23 cents overnight to settle at $48.58.

....

Investors are also anticipating the weekly oil inventories report to be released Wednesday by the U.S. Energy Department's Energy Information Administration for signs of slowing U.S. crude demand.

....

The Platts survey also projects that gasoline inventories rose 1.6 million barrels and distillates jumped 700,000 barrels last week.

In other Nymex trading, gasoline futures rose 0.81 cent to $1.20 a gallon. Heating oil fell 0.33 cent to $1.62 a gallon while natural gas for February delivery jumped 2.5 cents to $6.01 per 1,000 cubic feet.

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

[ozymandius]

4. Alcoa to cut 13 percent of global work force

PITTSBURGH – Aluminum producer Alcoa Inc. is cutting roughly 13 percent of its global work force by the end of the year as it slashes costs in the face of a deteriorating world economy.

The elimination of 13,500 jobs, along with deep production and spending cuts, follow cost-saving measures unveiled by the Pittsburgh-based company last fall. At that time it reported a 52 percent decline in third-quarter earnings, citing sharply lower aluminum prices, weaker demand and a charge for curtailing a Texas smelter.

The latest moves also include the slashing of 1,700 contractor positions and the planned sale of four business units. Alcoa — the world's third-largest aluminum maker — has also imposed a global salary and hiring freeze.

....

Kevin Lowery, an Alcoa spokesman, said he did not have a breakdown of the job cuts by country. The company employs at least 94,000 people in 34 countries, though the size of the total work force fluctuates, he said.

http://news.yahoo.com/s/ap/20090107/ap_on_bi_ge/alcoa_job_cuts

[ozymandius]

5. World markets mixed as Indian stocks plunge

HONG KONG – Asian markets were mixed Wednesday as Japan's key index rose for a seventh day but Indian shares tumbled after the chairman of major outsourcing company Satyam Computer admitted to falsely inflating profits for years. European markets opened lower.

India's Sensex index plunged more than 6 percent to 9,694 after Satyam's chairman, B. Ramalinga Raju, said in a letter to the board released to the stock exchange that the company's balance sheet was loaded with "fictitious" assets and "non-existent cash."

....

In Hong Kong, the benchmark Hang Seng sank 3.4 percent to 9,239.24 after Bank of America Corp. sold part of its stake in No. 2 lender China Construction Bank Ltd. for $2.8 billion, a move to raise cash amid the economic turmoil. Construction Bank shares dived 8.8 percent, dragging down most banking stocks.

....

As trading opened in Europe, Britain's FTSE 100 lost 1.5 percent, Germany's DAX shed 0.9 percent and France's CAC-40 was off 0.6 percent.

Tokyo's Nikkei 225 stock average rose 158.40 points, or 1.7 percent, to 9,239.24, as a weaker yen led investors to buy exporters. Honda Motor Co., Japan's No. 2 carmaker, jumped 11 percent, Nikon Corp. soared 15 percent and Sony Corp. added 8.7 percent.

http://news.yahoo.com/s/ap/20090107/ap_on_bi_ge/world_markets

[Ghost Dog]

27. Taiwan makes snap rate cut as exports collapse

TAIPEI, Jan 7 (Reuters) - Taiwan resorted to an emergency interest rate cut of 50 basis points on Wednesday after data showed exports sinking at a record pace as the global financial crisis savaged demand in China, the island's biggest market.

Exports sank 42 percent in December as electronics shipments marked the biggest fall on record. Exports to China including Hong Kong tumbled a record 54 percent.

The central bank said last month's export slump was having a severe impact on the economy. It reduced the benchmark interest rate to 1.5 percent from 2 percent in the sixth cut since a global credit squeeze tore through the U.S. banking system in September.

Demand in Taiwan is also crumbling. Imports fell 44.6 percent, allowing the island to post a trade surplus in December.

Imports of consumer goods fell by an annual 12 percent in December, sparking worries that Taiwan might see temporary deflation this year.

/... http://www.reuters.com/article/marketsNews/idINTP458820090107?rpc=44

[Ghost Dog]

28. European shares down; utilities, BP lead fallers

Wed Jan 7, 2009 7:20am EST LONDON, Jan 7 (Reuters) - European shares declined by midday on Wednesday after rising for six consecutive sessions, as oil major BP (BP.L) led the energy sector down, while rising German unemployment provided further evidence of economic weakness.

At 1201 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was down 0.5 percent at 884.84 points after finishing 1.9 percent higher in the previous trading session, its highest close since Nov. 10.

...

Utilities were among the biggest losers. Shares in Germany's largest utility E.ON (EONGn.DE) fell 2.9 percent and its peer RWE (RWEG.DE) dropped 1.9 percent amid concerns of natural gas supply bottlenecks and hurt by easing oil prices.

Russian gas supplies to Europe through Ukraine shut down completely on Wednesday, leaving several European Union member states, including Germany, without Russian fuel in freezing mid-winter temperatures.

Utilities were further hit by Scottish & Southern Energy (SSE.L) saying it is to place about 40 million shares to boost its balance sheet, representing up to 5 percent of its capital.

Shares in Scottish & Southern slid 7.3 percent while National Grid (NG.L) was 4.9 percent lower. GDF Suez (GSZ.PA) fell 1.3 percent.

Oil heavyweight BP fell 3.6 percent on market talk the company was telling analysts that its fourth-quarter earnings would be lower than expected, three dealers said. BP declined comment.

...

In macro news, Germany posted its first rise in unemployment in almost three years, a day after the global economic downturn forced U.S. aluminium giant Alcoa (AA.N) to announce 15,000 job cuts and slash output.

Across Europe, the FTSE 100 index .FTSE and Germany's DAX .GDAXI were down 1.3 and 0.7 percent respectively. France's CAC 40 .FCHI was up 0.1 percent.

/... http://www.reuters.com/article/marketsNews/idCAL743745820090107?rpc=44&sp=true

[Ghost Dog]

72. European stocks end down, weak US job data weighs

LONDON, Jan 7 (Reuters) - European shares ended lower, snapping their six day winning streak, as a weak U.S. employment data weighed on investors positive sentiment and commodity stocks were hit by lower crude and metal prices.

The pan-European FTSEurofirst 300 .FTEU3 index of top European shares provisionally closed down 1.5 percent at 875.94, having fallen to as much 871.92 points earlier.

David Buik, partner at BGC Partners, said: "There are three factors influencing Europe today. Firstly, the markets have been too frothy over the past few days and have been ahead of themselves. Secondly, Adolf Merckle's suicide has given credence to the depth of the credit crisis and damage it has been doing to the Germany economy."

"Lastly and most importantly has been the dreadful U.S. ADP employment data and the fall in U.S. mortgage applications. This has been a wake up call for the European markets. Sentiment has changed and profit takers have come in," he added.

/... http://www.reuters.com/article/marketsNews/idCAL771911920090107?rpc=44

[ozymandius]

6. Apartment rents show first decline in over 5 years

BOSTON (Reuters) – Average rents for U.S. apartments fell in the fourth quarter, as a sharp economic downturn and rising unemployment left Americans unwilling to pay higher prices, according to data released on Wednesday.

Rents fell 0.4 percent in the final quarter of 2008, the first decline since early 2003, the study by real estate research firm Reis Inc found.

The vacancy rate rose to 6.6 percent, a level last seen in the first quarter of 2005, and up from 5.7 percent a year earlier.

....

The slump is not confined to residential properties. Reis data released on Tuesday showed that office rents across the United States fell 1.2 percent in the fourth quarter, as a slumping economy drove vacancy rates higher.

http://news.yahoo.com/s/nm/20090107/us_nm/us_usa_property_apartments

[Festivito]

7. Debt: 01/05/2009 10,635,512,060,907.16 (UP 7,550,764,976.49) (Little.)

(On either side of the calendar-year/first-quarter beginning and end, big moves. Today, nope. Just small moves.)

= Held by the Public + Intragovernmental(FICA)
= 6,319,153,451,562.27 + 4,316,358,609,344.89
DOWN 912,747,082.07 + UP 8,463,512,058.56

Source: Debt to the penny:
http://www.treasurydirect.gov/NP/BPDLogin?application=np

THINKING IN BILLIONS: 3 or 4 dollars per billion in a 300-Million person America.
If every American, man, woman and child puts in $3.33 each THAT'S 1B$.
A family of three: Mom, Dad, Child: THEIR SHARE IS TEN BUCKS in a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is a federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)
(I hate those end to end dollars to the moon and back, or years to spend $100/second. Just say'n)
If you read this and have a suggestion or comment, good or bad, I'd love to see it.

ANALYSIS:
There were 20 reports in the last 30 to 31 days.
The average for the last 20 reports is -887,963,609.64.
The average for the last 30 days would be -591,975,739.76.
The average for the last 31 days would be -572,879,748.15.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 65 reports in 97 days of FY2009 averaging 9.40B$ per report, 6.30B$/day.

PROJECTION:
GWB** must relinquish the presidency in 15 days.
By that time the debt could be between 10.6 and 10.7T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
01/05/2009 10,635,512,060,907.10 GWB (UP 4,907,316,264,725.53 so far since Bush took office.)

Fiscal Year ends: Sep 30
Borrowed in FY1993: (Maybe later.)
Borrowed in FY1994: 281,261,026,873.94
Borrowed in FY1995: 281,232,990,696.07
Borrowed in FY1996: 250,828,038,426.34
Borrowed in FY1997: 188,335,072,261.61
Borrowed in FY1998: 113,046,997,500.28
Borrowed in FY1999: 130,077,892,735.81
Borrowed in FY2000: _17,907,308,253.43 Bill alone
Borrowed in FY2001: 133,285,202,313.20 Bill and George
Borrowed in FY2002: 420,772,553,397.10 All George
Borrowed in FY2003: 554,995,097,146.46
Borrowed in FY2004: 595,821,633,586.70
Borrowed in FY2005: 553,656,965,393.18
Borrowed in FY2006: 574,264,237,491.73
Borrowed in FY2007: 500,679,473,047.25
Borrowed in FY2008: 1,017,071,524,650.01
Borrowed in FY2009: 610,787,163,994.70 so far this fiscal year.

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
12/12/2008 -000,182,958,692.63 ---
12/15/2008 +027,986,876,028.13 ------------********** Mon
12/16/2008 +000,172,636,444.49 ------------********
12/17/2008 -000,200,107,551.80 ---
12/18/2008 -057,877,925,051.10 -
12/19/2008 -000,369,261,235.72 ---
12/22/2008 -000,588,542,244.94 --- Mon
12/23/2008 +000,074,940,615.00 ------------*******
12/24/2008 -000,121,597,338.38 ---
12/26/2008 -036,328,594,643.92 -
12/29/2008 -000,737,189,520.41 --- Mon
12/30/2008 +000,055,730,362.68 ------------*******
12/31/2008 +046,553,280,763.13 ------------**********
01/02/2009 -049,252,670,832.20 -
01/05/2009 -000,912,747,082.07 --- Mon

-71,728,129,979.74 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008.
US borrowed $970,880,257,648.09 in last 109 days.
That's 971B$ in 109 days.
More than any year ever, except last year, and it's 95% of that highest year ever only in 109 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 109 DAYS NOT 365.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3674907&mesg_id=3674946

[Festivito]

66. Debt: 01/06/2009 10,638,425,746,293.80 (UP 2,913,685,386.64) (Little again.)

(Looks almost, just like yesterday. Just small moves.)

= Held by the Public + Intragovernmental(FICA)
= 6,318,809,124,655.56 + 4,319,616,621,638.24
DOWN 344,326,906.71 + UP 3,258,012,293.35

Source: Debt to the penny:
http://www.treasurydirect.gov/NP/BPDLogin?application=np

THINKING IN BILLIONS: 3 or 4 dollars per billion in a 300-Million person America.
If every American, man, woman and child puts in $3.33 each THAT'S 1B$.
A family of three: Mom, Dad, Child: THEIR SHARE IS TEN BUCKS in a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is a federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)
(I hate those end to end dollars to the moon and back, or years to spend $100/second. Just say'n)
If you read this and have a suggestion or comment, good or bad, I'd love to see it.

ANALYSIS:
There were 21 reports in the last 30 to 32 days.
The average for the last 21 reports is -706,932,705.05.
The average for the last 30 days would be -494,852,893.54.
The average for the last 32 days would be -463,924,587.69.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 66 reports in 98 days of FY2009 averaging 9.30B$ per report, 6.26B$/day.

PROJECTION:
GWB** must relinquish the presidency in 14 days.
By that time the debt could be between 10.6 and 10.7T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
01/06/2009 10,638,425,746,293.80 GWB (UP 4,910,229,950,112.23 so far since Bush took office.)

Fiscal Year ends: Sep 30
Borrowed in FY1993: (Maybe later.)
Borrowed in FY1994: 281,261,026,873.94
Borrowed in FY1995: 281,232,990,696.07
Borrowed in FY1996: 250,828,038,426.34
Borrowed in FY1997: 188,335,072,261.61
Borrowed in FY1998: 113,046,997,500.28
Borrowed in FY1999: 130,077,892,735.81
Borrowed in FY2000: _17,907,308,253.43 Bill alone
Borrowed in FY2001: 133,285,202,313.20 Bill and George
Borrowed in FY2002: 420,772,553,397.10 All George
Borrowed in FY2003: 554,995,097,146.46
Borrowed in FY2004: 595,821,633,586.70
Borrowed in FY2005: 553,656,965,393.18
Borrowed in FY2006: 574,264,237,491.73
Borrowed in FY2007: 500,679,473,047.25
Borrowed in FY2008: 1,017,071,524,650.01
Borrowed in FY2009: 613,700,849,381.40 so far this fiscal year.

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
12/15/2008 +027,986,876,028.13 ------------********** Mon
12/16/2008 +000,172,636,444.49 ------------********
12/17/2008 -000,200,107,551.80 ---
12/18/2008 -057,877,925,051.10 -
12/19/2008 -000,369,261,235.72 ---
12/22/2008 -000,588,542,244.94 --- Mon
12/23/2008 +000,074,940,615.00 ------------*******
12/24/2008 -000,121,597,338.38 ---
12/26/2008 -036,328,594,643.92 -
12/29/2008 -000,737,189,520.41 --- Mon
12/30/2008 +000,055,730,362.68 ------------*******
12/31/2008 +046,553,280,763.13 ------------**********
01/02/2009 -049,252,670,832.20 -
01/05/2009 -000,912,747,082.07 --- Mon
01/06/2009 -000,344,326,906.71 ---

-71,889,498,193.82 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008.
US borrowed $973,793,943,034.73 in last 110 days.
That's 974B$ in 110 days.
More than any year ever, except last year, and it's 96% of that highest year ever only in 110 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 110 DAYS NOT 365.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3677262&mesg_id=3677280

[ozymandius]

8. State unemployment claim systems overwhelmed

ALBANY, N.Y. – Electronic unemployment filing systems have crashed in at least three states in recent days amid an unprecedented crush of thousands of newly jobless Americans seeking benefits, and other states were adjusting their systems to avoid being next.

About 4.5 million Americans are collecting jobless benefits, a 26-year high, so the Web sites and phone systems now commonly used to file for benefits are being tested like never before.

....

Systems in New York, North Carolina and Ohio were shut down completely by technical glitches and heavy volume, and labor officials in several other states are reporting higher-than-normal use.

....

The nation's unemployment rate in November zoomed to 6.7 percent, a 15-year high. Economists predict it will rise to 7 percent in December, with another 500,000 jobs probably cut last month. The government releases its monthly employment report on Friday.

http://news.yahoo.com/s/ap/20090107/ap_on_re_us/unemployment_glitches

[RamboLiberal]

82. In Pennsylvania phones at state unemployement office overwhelmed

Continous busy signals. People are spending days trying to contact. Not getting through. Not getting unemployment benefits. Local radio host in Pittsburgh this morning kept calling to demonstrate that each time he got a busy signal. People were calling in with horror stories of it taking weeks to get through and then being denied benefits for time they couldn't contact the agency.

[DemReadingDU]

84. Ohio also

1/7/09
People can't get through online, by phone

Ohioans' post-holiday demand for jobless benefits has spiked sharply, crashing the state's unemployment-claims system and forcing people to wait hours, sometimes days, before getting help.
In yet another sign of a worsening economy, the state Web site for filing claims electronically was shut down and phone lines have been jammed by more than 10 times as many requests.

Unemployment-filing systems have crashed in at least two other states in recent days as 4.5 million Americans -- a 26-year high -- are collecting jobless benefits.

Ohio officials say they are scrambling to hire temporary workers to staff call centers, and technicians are working to fix the Web site.

In the past week, the state call center has been receiving about 80,000 calls a day, up from 7,500 on average last month, said Dennis Evans, spokesman for the Ohio Department of Job and Family Services, which oversees unemployment benefits.

"It's the volume of calls, it's the economy, it's the extended benefits -- all are increasing caseloads," he said.

The endless busy signals and computer-error messages have left many out-of-work Ohioans, already stressed by mounting bills and fruitless job searches, on the verge of snapping.

Ohio's unemployment rate in November was 7.3 percent, with 435,000 out of work. The state pays nearly $43 million in jobless benefits each week.

The demand is about to exhaust the state's unemployment compensation fund, which as of Monday was down to $16 million.

When that's gone, Ohio will be forced to borrow -- with interest -- from a federal loan fund to ensure that benefits continue being paid.

Unemployment compensation systems are under similar strains in North Carolina and New York, where Web sites crashed because of high demand.

more...
http://www.dispatchpolitics.com/live/content/local_news/stories/2009/01/07/copy/busy07.ART_ART_01-07-09_A1_TQCEPK5.html?adsec=politics&sid=101

[ozymandius]

9. Goody's Family Clothing to liquidate stores

NEW YORK (Reuters) – Goody's Family Clothing, a privately held apparel retail chain which emerged from bankruptcy in October, plans to liquidate its remaining stores as the U.S. economic recession has undermined its ability to continue operating.

"The company is in the processes of obtaining bids to liquidate substantially all collateral and inventory," said Cathy Hershcopf, a bankruptcy partner at law firm Cooley Godward Kronish LLP. "The retail environment is very difficult and they did not have sufficient capital to weather the bad times."

...

When the company emerged from bankruptcy, it operated 287 stores in 20 states.

http://news.yahoo.com/s/nm/20090106/bs_nm/us_goodys

[ozymandius]

10. LyondellBasell U.S. units file for bankruptcy

NEW YORK (Reuters) – The U.S. operations of LyondellBasell, the world's third-largest petrochemical company, filed for bankruptcy protection under the weight of a massive debt load and slumping demand for its products.

The company had taken on billions of dollars in debt obligations a year ago, when billionaire Len Blavatnik led a $12.7 billion leveraged buyout of U.S. firm Lyondell by Basell of the Netherlands.

The New York bankruptcy filing on Tuesday included almost 80 units of the company and encompassed its U.S. operations and a European financing arm. The company's non-U.S. operations are not included in the Chapter 11 bankruptcy and are continuing to operate as usual.

....

The U.S. operations have obtained $8 billion in debtor-in-possession financing to help fund operations, including $750 million from Access Industries.

http://news.yahoo.com/s/nm/20090106/bs_nm/us_lyondellbasell_bankruptcy

[AnneD]

74. They are a big employer here in Houston.....

while a surprise, it was not unexpected. Small petrochemical refiners pockets are not as deep as Exxon. They are hurting.

This is the first domino to fall in Houston. It is down hill from here.

Chemical slump sends LyondellBasell into Chapter 11
By BRETT CLANTON Copyright 2009 Houston Chronicle
Jan. 6, 2009, 10:26PM

LyondellBasell Industries on Tuesday became the first major casualty of a recent downturn in the chemical industry, filing for bankruptcy protection amid plunging sales and massive debts.

The Dutch chemical giant, with major operations in Houston, blamed the move on “a dramatic softening in demand” for its products, along with “unprecedented volatility” in raw material costs last year.

The Chapter 11 filing, made in U.S. Bankruptcy Court in the Southern District of New York, included Houston-based Lyondell Chemical Co., 79 other U.S. affiliates and one European holding company. Assets were listed at $27  billion and debts at $19 billion.

Among the thousands of creditors owed money by LyondellBasell and listed in the filing were banks, other chemical makers like Germany’s BASF, oil companies including the state-owned Petroleos de Venezuela, commodity trading firms, and chemical transporters like pipelines, railroads and tankers.

http://www.chron.com/disp/story.mpl/business/6197755.html

from the local paper......

[ozymandius]

11. Madoff victims may get some cash within a month

(Reuters) - Investors who lost money in Bernard Madoff's alleged $50 billion (34 billion pound) fraud might begin recovering some of their funds as soon as next month, Securities Investor Protection Corp, President Stephen Harbeck told Bloomberg in an interview.

The first payouts from the investor protection fund could occur in "a month or two" if the cash isn't difficult to trace, Harbeck told the agency.

Other customers will have to wait for months, he told the agency, declining to be more specific.

http://www.reuters.com/article/hedgeFundsNews/idUSLNE4BM00L20090107

[DemReadingDU]

34. Austria’s ‘Woman on Wall St.’ Now Out of Sight

1/7/09 Austria’s ‘Woman on Wall St.’ Now Out of Sight
By NELSON D. SCHWARTZ and JULIA WERDIGIER

VIENNA — With an aggressive style that stood out in the staid world of Austrian banking even more than her bouffant red wig, Sonja Kohn made few friends gathering billions for Bernard L. Madoff from wealthy investors in Russia and across Europe.

Now, she has even fewer. Mrs. Kohn has dropped out of sight, leaving the firm she founded, Bank Medici, in the hands of Austrian regulators, who took it over last week.

Embarrassment from investing heavily with Mr. Madoff could explain wanting to disappear from public view. But another theory widely repeated by those who know Mrs. Kohn is that she may be afraid of some particularly displeased investors: Russian oligarchs whose money made up a chunk of the $2.1 billion that Bank Medici invested with Mr. Madoff.

“With Russian oligarchs as clients,” said a Viennese banker who knew Mrs. Kohn and her husband socially, “she might have reason to be afraid.”

It was a view shared in interviews with Mrs. Kohn’s fellow bankers, former employees and other associates — from Vienna to London to Geneva to Monsey, N.Y.

Few of those who know her were willing to be quoted by name because they feared being linked to the scandal surrounding Mr. Madoff as well as the investigations into his alleged fraud. But several people with knowledge of her personal and professional dealings say she became concerned about retribution by Russian investors after Mr. Madoff’s arrest last month. (Russia’s richest men have been especially strapped as commodity prices and their stock market have collapsed.)

more...
http://www.nytimes.com/2009/01/07/business/07medici.html?_r=2&partner=rss&emc=rss

[Ghost Dog]

73. Some (dry) comments on this from last night:

http://www.democraticunderground.com/discuss/duboard.php

[DemReadingDU]

80. lol

:rofl:

[Ghost Dog]

89. Heh. Did the link get screwed?

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3676882

[DemReadingDU]

91. Not a problem, I used the search, and found the link

;)

[antigop]

49. And who will get the first payouts? Names, please... n/t

[tclambert]

87. Aaron Aaronson Bush, Alice Abbott Bush, Bandar bin Sultan,

and some guy named Cheney. And a guy who goes by "antigop?" "Sorry, we lost your form."

[antigop]

88. Wouldn't be surprised. n/t

[ozymandius]

12. UPDATE 3-Bank of America sells $2.8 bln China bank stake

HONG KONG, Jan 7 (Reuters) - Top U.S. lender Bank of America (BAC.N), raising cash to weather a dismal market at home, sold a $2.83 billion chunk of its holding in China Construction Bank (0939.HK) on Wednesday, dragging the Chinese bank's stock 6 percent lower.

China's three largest banks attracted big strategic investments from western financial giants at the time of their initial public offerings. Those investors are now under pressure to shed their stakes as the global financial crisis ravages the banking industry, and further sales are expected.

Bank of America sold more than 5.62 billion shares, or nearly 13 percent of its holding in Construction Bank, at HK$3.92 apiece, according to a term sheet obtained by Reuters and a person familiar with the matter, in a deal that had been widely anticipated by the market.

"The news has been expected but investors will still take it hard because BoA will most definitely sell more. They need the money," said Francis Lun, general manager with Fulbright Securities in Hong Kong.

http://www.reuters.com/article/newsOne/idUSHKG895720090107

[specimenfred1984]

71. How much money would the sale of 100% of a Chinese bank raise for Bank of America, LOL

"Bank of America" my ass.

[ozymandius]

13. Fed Minutes Offer No Comfort

The central bank's rate-setting committee expects GDP to contract 2009, with a significant rise in unemployment.

The U.S. Federal Reserve sees an economy mired in recession, with only a slow march to improvment into 2010.

The Federal Open Market Committee released its minutes from its Dec. 16 meeting, which showed the central bank sees substantial downside risk for the economy, and with that, lower inflation pressures. It also said it economic outlook will remain weak for some time.

Most members of the policy-setting committee expect the economy to recover slowly in the second half of 2009, with an aggregate contraction in the country's gross domestic product for the year, and a significant rise in unemployment into 2010.

....

Earlier in the day, the government reported that November factory orders fell 4.6%, well ahead of the 2.3% drop predicted by Wall Street. It was the first time factory orders had fallen for four consecutive months since the government began assembling the data in its current form in 1992, the Commerce Department said.

http://www.forbes.com/markets/equities/2009/01/07/housing-factory-update2-markets-econ-cx_cg_0106markets29.html

[ozymandius]

14. U.S. Shopping Mall Vacancies Reach 10-Year High as Stores Fail

Jan. 7 (Bloomberg) -- Vacancies at U.S. malls and shopping centers approached 10-year highs in the fourth quarter, and are set to rise further as declining retail sales put more stores out of business, research firm Reis Inc. said.

Regional mall vacancies rose to 7.1 percent last quarter from 6.6 percent in the third quarter. It was the highest vacancy rate since Reis began tracking regional malls in 2000, as well as the largest quarter-to-quarter jump in vacancies, according to New York-based Reis.

....

Asking rents at shopping centers, which are typically anchored by a grocery store, fell 0.3 percent from the prior quarter and rose 0.4 percent from a year earlier. Effective rents fell 0.9 percent from the prior quarter and were down 1.1 percent from a year earlier, according to Reis.

At neighborhood shopping centers, tenants vacated more space than they leased, causing so-called net absorption to shrink by 4.1 million square feet, according to Reis.

....

Simon Property Group Inc., the biggest U.S. mall owner, lost 435,000 square feet to bankruptcies last year through Sept. 30, up from 50,000 square feet in the same period a year earlier, Chief Executive Officer David Simon said in November. Simon’s multiyear leases protect the company to some extent from monthly changes in consumer spending, Simon said.

http://www.bloomberg.com/apps/news?pid=20601068&sid=azgge9HHWzZE&refer=economy

[Demeter]

15. Good Morning Ozy! If Only the Cartoon Were True!

and Scalia was also pink-slipped.

[ozymandius]

18. Good morning, Demeter.

:donut: :donut: :donut:
This is the first Ted Rall cartoon I have ever felt perfectly comfortable using on the SMW. Usually Rall employs images of cannibalism, setting living people on fire, etc. You know - the kind of pictures that would make Idi Amin happy.

I'm glad that he has turned his rapier-sharp wit to other things that I would be fine to show my six-year-old.

Edit: Oh, yes! If only it were true! What a great day it would be if those scalawags Scalia and Thomas went with him.

[ozymandius]

16. Banks’ ‘Catatonic Fear’ Means Consumers Don’t Get TARP Relief

Jan. 5 (Bloomberg) -- As the new owner of $172.5 billion of preferred shares and warrants in 208 U.S. financial institutions, the Treasury Department hasn’t succeeded in thawing frozen credit markets, leaving taxpayers propping up an industry that won’t lend to them.

While inter-bank lending rates have fallen since Congress approved the $700 billion Troubled Asset Relief Program on Oct. 3, most bank lending to consumers remains tight and interest rates high. The average credit-card rate was 14.33 percent on Dec. 16, according to IndexCreditCards.com in Cleveland, almost unchanged from 14.41 percent in October 2007.

....

Although the government has committed more than $8.5 trillion to energizing the economy, and the Fed cut a key lending rate almost to zero, banks haven’t made it easier to borrow. The Fed said consumer credit fell by $6.4 billion in August, the largest drop in 65 years, and then by $3.5 billion in October, the first time since 1992 that there were two months of declines in a year.

....

Last week the government announced that $5 billion of TARP funds would be used to purchase preferred shares and warrants in GMAC LLC, the automaker’s financing arm, with Treasury separately lending another $1 billion to GM to support GMAC’s transition into a bank holding company.

With the exception of GMAC, which immediately began offering loans to GM customers with lower credit scores in order to halt the decline in auto sales, most financial institutions that received TARP funds have been reluctant to lend.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aqLT6v88t.Jo&refer=exclusive

---

So GMAC, devil it is, "gets it". So why don't other banks "get it" in terms of converting capital-on-hand to income?

[Demeter]

19. Because GMAC Exists To Lend Money for Cars

Most banks exist to pay their CEO and increase stock price.

[saigon68]

22. For Sure

Good Point :-)

[AnneD]

76. Demeter....I hope you smoke cause.....

give that lady a cigar. ding ding ding ding.

[natrat]

32. a- hoarding money to pick up assets on the cheap after the big meltdown

b-they are way beyond broke and just trying stem the bleeding

[Demeter]

17. More Money for Robert Rubin

http://www.prospect.org/csnc/blogs/beat_the_press

It looks like President-elect Obama is picking up President Clinton's promise to end welfare as we know it. Back in those pre-welfare reform days, welfare checks went to poor families. Welfare as we know it now seems to involve giving taxpayer dollars to Citigroup and other banks.

The media seem to have largely overlooked the Citigroup tax credit in their discussion of the latest items in President Obama's stimulus proposal. According to the Washington Post, the proposal will allow companies to write off current losses against taxes paid over the last 4-5 years, not just 2 years, as in current law.

There are relatively few companies that could benefit from this tax break since most companies will not have losses so large that they would need more than two years of tax payments to balance them against. But, really big losers, like Robert Rubin's Citigroup, and other badly failing financial institutions, are losing much more money in 2008 and 2009 than they earned in 2006 and 2007.

Did the political connections of Robert Rubin and others in the financial industry have anything to do with the decision of Obama's economic team to be so generous to them? I don't have an answer to that question, but the media should be asking it.

SO, THAT'S WHY CITIGROUP!

[Demeter]

20. Captain’s Log: Year of our Lord 2009, 6th day...

http://www.dailyreckoning.com/Issues/2009/DR010609.html

We have landed on a strange and wonderful watery planet – the third planet in orbit around the sun, a minor star in the Milky Way galaxy. Well, they say it is watery planet. Where we are, it is icy. But the locals say it warms up and the ice melts. We’re suspicious; maybe it’s just hype to attract tourists.

But what is strange about this planet is that its inhabitants all seem to play a game of make-believe, in which they all agree to believe things that every one of them knows is untrue. What is wonderful about it is that it seems so easy to make money here; there’s a fool on every corner just waiting for the chance to get rid of his wealth.

Recently, humans – the race that inhabits this place – believed that their lodges and living quarters would become more and more valuable – even though it was obvious that their houses deteriorated every day, as a consequence of solar radiation, wind erosion, liquor spilt on the carpets and other natural phenomenon. Then, on the back of this remarkable delusion, they built an entire world economy...including extravagantly complex financial instruments which the wisest among them called “weapons of mass financial destruction.”

Someone seems to have cut the power to that illusion a few months ago, so now they are taking up a new one: that if people are given more pieces of green paper they will all be richer...

[ozymandius]

21. Good one!

Just like the child who asked me last year, "What gives money its value?"

"Faith," I said, "a whole lot of faith."

Faith-based wealth. Kinda like making 'hope' the key component to life's plan.

[Demeter]

23. Daily Reckoning and I Have Different Philosophies

Bill Bonner is into hoarding, amassing great wealth in excess of his lifespan needs.

I'm interested in seeing how everybody can live.

It is only that his facts are solid that his arguments have any validity.

[AnneD]

77. I remember that Ozy and I have thought about that a lot....

I have decided to place my faith in God, keep my assets tangible and use cash as a trading medium.

[Tansy_Gold]

24. An even more dangerous illusion ----

That being richer will make them happier.

There are enough of us SMWers who are living on the financial edge. We know that a severe LACK of money can lead to a lack of happiness. It's no funlying wake at 3:00 A.M. and wondering where you're going to get the cash for the electric bill or the water bill or that prescription or the next bag of dog food. We live in a complex economy that requires some standard medium of exchange, and we have various needs that require a sufficient supply of that exchange medium.

But it seems that there are a lot of people, some of them on DU and maybe even some on SMW, who really do not understand that there are things one doesn't need money for and that can provide a measure of contentment that transcends the mere possession of things. And it's their greed for monumentally non-essential "things" that makes so many other people so monumentally UNhappy.


Tansy Gold, scratchin' the (happy) dog's ears

[Demeter]

25. Morning, Tansy

More weather here--surely there must be a shortage ahead? At the rate we are going through weather, somebody has got to be short somewhere. 2008 supposedly the coolest on record this decade?

[JNelson6563]

36. Well said.

Seems all you Marketeers are really on a roll this morning with the "well said" itmes. Have felt the urge all down the thread to respond that way, yours compelled me.

You guys rock. If I ever found myself with buckets o'money I'd fly you all in somewhere and enjoy you all in person.

Cheers,
Julie

[Roland99]

39. I sorta had it all several years ago. Was living beyong my means then.

Had a beautiful new home, two new(er) cars. We went out to eat a lot. Went to concerts. Many weekend trips. Always had the new season's clothes.

Then reality hit me hard with 7 months of unemployment and a divorce. All that STUFF wasn't making me happy. It was just masking other, deeper problems.

When I got back into IT months later, I was at about half the salary I'd had before and was thankful of our bankruptcy laws back then. I hated to file BK but I had no option. Then I started living within my means and spending more time with my daughters. I was so much happier.

Now I'm faced with the distinct possibility of not having a new job lined up after this month but I'm not biting my nails or popping pills or slamming down a six-pack and worrying my butt off. Whatever happens will happen and I know I'll adjust. I can easily move in with family if need be so the only bills I have to worry about are a few small credit cards and a car payment (oh, and the chiropractor and my daughter's braces but there's just a few months left on each). Wouldn't take much income at all to cover that.

But it took a huge and painful event to wake me up. I think we're seeing that happen now on a tremendously huge scale.

My only hope is that those going thru the roughest of times right now LEARN from their current situation and change their mindset and live not only within their means, but work on living under their means and plan for future emergencies.

[AnneD]

79. That was the same take away lesson I learned

it the crash of the 80's. It is the things money can't buy that bring us the most happiness. I also seemed to have learned these crooks bag of tricks and I hope my warning helped you guys at SWT.

My second scrape that we were getting out of was not the economy but greedy ex hubby, lawyers, and things one can't always anticipate. From that, I learned that life is also about managing risk and keeping your exposure to risk at a minimum. I have worked hard to get out of debt these last 5 years. I am now within 2 years of being debt free.

I thank God every day for my blessings and the in site which he has given me. The last thing one wants to do is go into this recession/depression in debt. What a gut wrenching soul shattering experience it must be to lose everything you thought you had. These folks caught up in the mortgage mess, unlike some bankers-did not go into this with criminal intent. They have learned a very bitter lesson (we hope).

Because of my experiences, I realize that I can make it through even the roughest of time. I know what needs to be done and I have a far better cushion now than I did years ago. I share my experiences freely and honestly. I hope it can help folks in their rough times as it was hard earned knowledge.

[Dr.Phool]

47. It must be fun being wealthy.

Here it is, the 7th day of the month, and after paying bills, and extortion to State Farm, I'm shot for the month. Actually, I'm in the hole. I just dropped the Fudd off at the vet's for some eye surgery, and that will go on the Visa.

It was a perfect morning here about an hour ago. About 75 degrees with a nice breeze. I figured when I got home, I could jump on the motorcycle for a nice ride. Before I got home however, a cold front moved through, the skies opened up and the temperature dropped about 15 degrees in minutes.

But, I think I'll make a needed trip on the treadmill at the gym instead.

[Ghost Dog]

33. Not bad

(and agreeing entirely with Tansy),

but I would replace "humans – the race that inhabits this place" with something like "humans - the species which claims to be intelligent yet appears blindly, greedily determined to destroy the biosphere of this place"...

(Edit: The concept of 'race' in this context has no real meaning, I understand).

[JNelson6563]

37. haha

Absolutely fabulous. :applause:

[Ghost Dog]

44. Ok, Now having read it all and reflected some,

I realise I have no clear idea of what shape the next US (Obama Administration + the present Congress, or is it the other way around?) "stimulus package" will take. But the omens, so far, don't look very hopeful...

A few points off the top of my head:

1. "Tax Cuts": A "progesive income tax realignment" would be more like it - taxing the less well-off less while, on a sliding scale, taxing the wealthier more and the obscenely wealthy much, much more. The overall tax take here should probably increase quite a lot in order to help cover other measures such as:

2. Targeted Tax Adjustments: I'm thinking here along the lines of tax cuts on purchases/investments in any area which would help to reduce overall energy consumption, promote greater efficiency in energy use, encourage the necessary switch from fossil- to renewable-energy sources; and to encourage spending on vital services such as education and health care, existing infrastructure repairs and maintenance, and, most importantly:

3. New Spending on New High-Quality Projects: Eg. those more efficient and renewable energy developments; public transport initiatives; a revolution in health and education services; far more organic agriculture; more efficient water use such as irrigation in the likes of California; basic science, investigation and development ... well, the list here goes on - I've seen plenty of good ideas here at DU. (Edit: How about some government finance to set up some major non-corporate media initiatives run "by the people for the people" as a strong antidote to the current "means by which delusions are shared and propagated"?)

All or most of the above should not only help keep the wheels of the 'real economy' turning; they should help provide jobs - new jobs and retained older jobs: They would be, above all, investing in a mid-to-long term high-quality, low-consumption sustainable economy (and ecology).

Oh, and of course 4. Introduce massive cuts in spending on the military machine and put an end to wars of aggression and occupation, otherwise, as Paul Craig Roberts said the other day (paraphrasing): "What we (will be) witnessing is a once great (social) power engaging in fantasy to disguise from itself that it is a failed state."

[UpInArms]

26. dollar watch

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

Last trade 82.358 Change -0.488 (-0.63%)

Euro Finds Support On Dollar Weakness, Despite Historic Drop In Producer Prices

http://www.dailyfx.com/story/bio1/Euro_Finds_Support_On_Dollar_1231326455248.html

The Euro would reach as high as 1.3627 on the back of broad based dollar weakness despite an increase in German unemployment and the biggest drop in producer prices in 27 years. Factory gate prices in the Euro-Zone dropped by 1.9% following a 0.8% fall in November as energy costs fell 5.1%. The monthly drop dragged the annualized rate to 3.3% from 6.3% which was the lowest in thirteen months. Meanwhile, German unemployment rose for the first time since January, 2006 by 18,000. Although the unemployment rate remained unchanged from November’s 7.6%, the prior reading was revised higher from 7.5%. The German labor market is catching up with the economy and December’s job losses may be the beginning of a downward trend. Europe’s largest economy is in a technical recession and with global demand shrinking the export driven nation may be headed for further weakness.

The precipitous drop in producer prices has increased the downside risk to inflation and may necessitate that the ECB reduce their bench mark interest rate in an effort to adhere to their price stability mandate. Deflation concerns are growing globally and the central bank is expected to cut interest rates by 50 bps at their January 15th meeting. Therefore, we may see Euro weakness resume, despite the current retracement. Yet, the 50-Day SMA looms as support at 1.3204 which may limit short term downside risks.

The Pound remains firm despite the prospect of a BoE rate cut, reaching as high as 1.4993. Psychological resistance lies ahead at 1.5000 with the 50-Day SMA at 1.5086 providing additional interference. A break of these levels may lead to another significant move higher. However, we could see pound weakness heading into the rate decision with the potential for sharp moves in either direction depending on the comments from the central bank. If it appears their easing cycle has ended, then more Sterling strength may be expected. Conversely, a signal that a ZIRP is inevitable could lead to Pound weakness.

The Yen and Swiss Franc reversed their recent downward trends as risk aversion has crept back into markets on the back of the FOMC’s dour minutes. The dollar/yen would fall below 93.00 during overnight trading before finding support with the dollar/franc testing 1.1000. European equity markets ended a six day rally and U.S. futures are pointing toward a lower open which may add to the current momentum. We may see this sentiment continue throughout the week with the U.S. employment figures expected to be dour. However, an expected BoE rate cut may give traders hope that global leaders will continue to do what is needed to end the current downturn and fuel optimism.

The dollar has steadily weakened since the release of the minutes of the Fed’s last policy meeting in which the committee painted a dour outlook for 2009. The central bank significantly revised their growth estimates lower for the year and now sees the economy contracting for the entire period, reversing earlier forecast of a second half rebound. Indeed, the FOMC predicts that employment will continue to weaken until 2010 which will prevent the economy from gaining traction until the end of the year. Today will we get a glimpse into the state of the labor market with Challenger job cuts and ADP employment figures due to cross the wires. November’s ADP figures have already been significantly revised lower to a loss of 472,000 from 250,000 which is the most since records began in 2001. A Bloomberg survey of economists are calling for another drop of 493,000 jobs in the private sector for December which would set a fresh record low for the indicator and signal that Friday’s NFP may be worse than the -500,000 that is expected. On the heels of the Fed’s minutes the dour employment figures could weigh on the dollar for the remainder of the week. However, now that we are seeing similar weakness globally the bearish momentum may be limited.

...more...

Euro Upside to Offer Selling Opportunity against US Dollar

http://www.dailyfx.com/story/topheadline/Euro_Upside_to_Offer_Selling_1231328860901.html

The Euro has retraced close to half of December’s impressive rally against the US dollar and now looks poised for an upswing. The broad trend continues to favor a bearish outlook, with a correction higher offering an attractive selling opportunity ahead.



Strategy: Short at 1.5510, Looking to add

We sold EURUSD at 1.5510 having identified a Long Black Candle that closed beyond trend line support. The pair is now trading at 1.3613, bringing our floating profit to 1897 pips. We noted at the beginning of December that EURUSD looked poised for a bullish correction that would offer a selling opportunity to trade with the long-term down trend. Indeed, the pair managed a rally of historic magnitude (far higher than we expected) to test above 1.47 but failed to break support-turned-resistance at the long-term trend line that had guided EURUSD higher from 2002 and was broken in October. The pair has now retraced about 50% of December’s impressive up move and is showing a Hammer at the key multiple support/resistance level near 1.3423. We will look for an upswing to find a top on a test of support-turned-resistance at the bottom of the range from late December in the 1.3823-1.3910 area to add to our short position.

...more...

[UpInArms]

29. Price-Fixing Suit Involves Prominent Private Equity Players

http://www.law.com/jsp/ihc/PubArticleIHC.jsp?id=1202427246563

Lawyers for the private equity industry are watching a consolidated antitrust class action alleging that 17 private equity companies and investment banks conspired to keep the price of target companies artificially low during a five-year period.

The case, which consolidates two separate lawsuits, recently survived a motion to dismiss in the District of Massachusetts, exposing to trial companies such as investment banks JPMorgan Chase & Co. and Merrill Lynch & Co. Inc. and bank holding company Goldman Sachs Group Inc., and their subsidiaries. Dahl v. Bain Capital Partners LLC, nos. 1:07-cv-12388, 1:08-cv-10254 (D. Mass.).

The suit names some of the most prominent private equity and public investment players, including Bain Capital Partners, The Blackstone Group, Kohlberg Kravis Roberts & Co. and Thomas H. Lee Partners L.P.

<snip>

The Massachusetts cases allege that the companies used so-called "club leveraged buy outs" (LBOs), or group deals, to horizontally fix prices by rigging bids. The case alleges that the private equity companies agreed on bid prices, included sham bids to give the appearance of competition for the target company and agreed which parties would bid on particular deals. The case claims the "overarching conspiracy" involved $2.5 billion worth of deals between 2003 and 2008.

The plaintiffs, consisting of a trust, a public retirement trust fund and five individuals, claim that the defendant's activities amount to unjust enrichment. They're asking the court to force the defendants to disgorge revenue gained from the collusion.

The Massachusetts case is challenging a widespread pattern of companies that engage in joint bidding "then cut in the losers for a piece of the action," not the practice of joint bidding itself, said the lead plaintiffs' lawyer in the case, Craig Wildfang, an antitrust and trade regulation partner at Minneapolis-based Robins, Kaplan, Miller & Ciresi.

"I was gratified that the court concluded that just because some joint activities may be lawful, that not all of the alleged activities may be lawful," Wildfang said.

In a Dec. 15 order, Senior District Judge Edward F. Harrington denied the defendants' motion to dismiss on the grounds that the plaintiffs have a valid Sherman Act claim and that the U.S. Securities and Exchange Commission doesn't regulate private equity firms.

...more...

very interesting stuff - but it would also show (hopefully and eventually) that they have taken over these entitites and loaded them with unbelievable debt and gutted them and stripped them of assets and left them to die ignoble deaths

[Demeter]

90. So, Another Hole in the Stern. Why Are These Ships of the Fleet Still Afloat?

With criminal activity like this, they should be put down like rabid dogs.

[UpInArms]

30. US 2008 planned layoffs most in 5 yrs -Challenger

http://www.reuters.com/article/bondsNews/idUSNYS00469120090107

NEW YORK, Jan 7 (Reuters) - Planned layoffs at U.S. firms eased in December from the previous month's seven-year high but they were up an astounding 275 percent annually as the year-old recession cut a huge swathe of destruction through job market.

The economic slump, which is likely to be the longest since the Great Depression of the 1930s, also produced the worst year of layoffs since 2003, outplacement company Challenger, Gray & Christmas said on Wednesday in its monthly report on U.S. job cuts.

The report said heavy job-cutting could continue through at least the first half of 2009, and the outlook afterward hinges on President-elect Barack Obama's plans to stimulate the economy through increased government spending.

"The economy could begin to mount a comeback in the second half of the year, if the new administration can achieve quick passage of its proposed economic and job-growth stimulus package," said John Challenger, chief executive officer of Challenger, Gray & Christmas.

"The plan to rebuild the nation's crumbling infrastructure will benefit not only laborers on the front lines, but it will push up through the economy, creating jobs for manufacturing workers, engineers, architects, technology specialists, etc."

Job cuts announced in December totaled 166,348, down 8.4 percent from November's 181,671, Challenger, Gray & Christmas said. Despite the monthly decline, layoffs were up from just 44,416 in the year-ago period.

Overall, employers announced 1,223,993 job cuts in 2008, the largest annual total since 2003, when there were 1,236,426 job cuts.

...more...

[UpInArms]

31. TABLE-U.S. mortgage applications fell last week-MBA

http://www.reuters.com/article/bondsNews/idUSN0645065920090107

 Select seasonally adjusted historical data from the Mortgage Bankers Association's (MBA) weekly
mortgage application survey:

               WEEK  4-WEEK  4-WEEK  WEEK            WEEK          30-YEAR      1-YEAR

WEEK     MARKET   CHG   MOVING   CHG  PURCHASE CHG   REFINANCE  CHG  MTG CONTRACT ARM CONTRACT

ENDING   INDEX    (PCT)   AVG    (PCT) INDEX   (PCT)   INDEX   (PCT)  RATE (PCT)  RATE (PCT)

======   =====    ===== ======== ==== ======== ===== =========  =====  =======    =====

01/02/09 1,143.8   -8.2 1,119.1  +7.9    344.2  +7.3    5,904.5  -12.3    5.07      5.90
12/26/08 1,245.7    0.0 1,037.6  +10.3   320.9  +1.4    6,733.8   -0.4    5.03      6.15
12/19/08 1,245.4  +48.0   940.6  +28.8   316.5  +10.6   6,758.6  +62.6    5.04      6.36
12/12/08   841.4   +2.9   730.3  +17.9   286.1   -4.5   4,156.0   +6.5    5.18      6.63
12/05/08   817.7   -4.7   619.6  +17.8   299.6  -17.0   3,901.9   +2.6    5.44      6.76*
11/28/08   857.7 +112.1   521.4  +29.7   361.1  +38.0   3,802.8 +203.3    5.47      6.61
11/21/08   404.4   +1.5   402.0   -4.3   261.6   +5.3   1,254.0   -2.1    5.99      6.87
11/14/08   398.6   -6.2   420.1   -0.6   248.5  -12.6   1,281.2   +2.6    6.16      6.80
11/07/08   425.0  +11.9   422.4   -3.7   284.4   +9.0   1,248.4  +16.1    6.24      6.77
10/31/08   379.9  -20.3   438.5   -4.7   260.9  -13.9   1,075.4  -27.8    6.47      6.86
10/24/08   476.7  +16.8   459.9   +1.2   303.1   +8.5   1,489.4  +28.5    6.26      6.90
10/17/08   408.1  -16.6   NA      -9.2   279.3  -10.9   1,158.8  -23.5    6.28      6.97
10/10/08   489.3   +5.1   500.4   -7.9   313.5   -0.3   1,514.2  +12.5    6.47      6.67
10/03/08   465.5   +2.2   543.5   -1.4   314.5   +3.2   1,345.8   +0.9    5.99      6.60
09/26/08   455.4  -23.0   551.2   +0.1   304.8  -10.9   1,333.9  -34.7    6.07      6.60
09/19/08   591.4  -10.6   550.6   +8.4   342.2  -10.0   2,043.4  -11.2    6.08      6.51
09/12/08   661.7  +33.4   508.2  +13.5   380.4   +2.4   2,300.0  +88.1    5.82      6.58
09/05/08   496.2   +9.5   447.6   +4.1   371.5   +6.4   1,222.9  +15.4    6.06      6.70
08/29/08   453.1   +7.5   430.0   +1.2   349.0  +10.5   1,059.7   +2.1    6.39      6.81
08/22/08   421.6   +0.5   424.9  +0.05   315.9   +0.6   1,038.0   +0.3    6.44      6.81
08/15/08   419.3   -1.5   424.7   -4.0   314.0   -0.4   1,034.5   -3.7    6.47      6.75
08/08/08   425.9   -1.5   442.2   -5.2   315.2    0.0   1,074.6   -4.2    6.57      6.84
08/01/08   432.6   +2.8   466.3   -4.2   315.2   +1.8   1,121.8   +4.4    6.41      6.80
07/25/08   420.8  -14.1   486.5   -2.8   309.5   -7.8   1,074.4  -22.9    6.46      6.93
07/18/08   489.6   -6.2   500.7   +1.4   335.6   -6.7   1,392.7   -5.6    6.59      6.95
07/11/08   522.2   +1.7   493.7   +0.7   359.7   -1.7   1,474.9   +6.9    6.22      6.97
07/04/08   513.4   +7.5   489.7   -2.3   365.8   +6.7   1,379.3   +8.7    6.43      7.04
06/27/08   477.7   +3.6   501.1   -1.2   342.8   +2.8   1,269.2   +4.7    6.33      6.93
06/20/08   461.3   -9.3   507.3   -6.1   333.4   -7.4   1,212.2  -12.1    6.39      6.88
06/13/08   508.4   -8.7   540.3   -5.0   360.2   -4.3   1,378.6  -15.0    6.57      7.04
06/06/08   557.1  +10.9   568.6   -2.8   376.2  +12.8   1,622.1   +8.4    6.24      6.73
05/30/08   502.3  -15.3   597.9   -6.0   333.6   -5.4   1,496.1  -25.7    6.17      6.80
05/23/08   593.3   -4.6   636.2   +1.0   352.7   +0.1   2,013.5   -8.9    5.96      6.92
05/16/08   621.6   -7.8   629.6   -0.6   352.5   -6.9   2,210.5   -8.7    5.90      6.71
05/09/08   674.4   +2.9   633.6   -2.7   378.5   -0.7   2,422.1   +6.5    5.82      6.60
05/02/08   655.4  +15.6   650.8   -2.6   381.3  +12.1   2,273.8  +19.3    5.91      6.77
04/25/08   567.0  -11.1   668.4   -4.3   340.1   -4.8   1,905.2  -16.7    6.01      6.86
04/18/08   637.6  -14.2   698.7  -10.5   357.3   -6.4   2,286.3  -20.2    6.04      6.93
04/11/08   743.4   +2.5   780.8   +3.0   381.6   -0.8   2,866.0   +5.2    5.74      7.02
04/04/08   725.6   +5.4   758.0   +1.8   384.7   +8.1   2,724.7   +3.4    5.78      7.06
03/28/08   688.3  -28.7   744.5   +0.11  356.0  -11.8   2,636.0  -38.1    5.75      7.00
03/21/08   965.9  +48.1   743.6  +11.3   403.7  +10.6   4,255.2  +82.2    5.74      7.02
03/14/08   652.0   -2.9   668.4   -6.0   365.0   -1.0   2,335.0   -4.6    5.98      6.99
03/07/08   671.7   -1.9   711.1  -12.1   368.8   +1.6   2,448.2   -4.7    6.37      6.72
02/29/08   684.9   +3.0   809.1  -11.0   363.1   +1.4   2,569.0   +4.5    5.98      5.83
02/22/08   665.1  -19.2   909.5   -9.7   358.2   +0.2   2,458.9  -30.4    6.27      5.84
02/15/08   822.8  -22.6 1,007.0   -3.8   357.6  -11.5   3,533.8  -27.9    6.09      5.72
2/08/08  1,063.5   -2.1 1,046.6   +3.9   403.9   -0.3   4,901.5   -3.0    5.72      5.72
2/01/08  1,086.6   +3.0 1,007.4  +10.4   405.3  +12.0   5,054.0   -1.0    5.61      5.62
1/25/08  1,054.9   +7.5   912.2  +16.7   362.0  -17.7   5,103.6  +22.1    5.60      5.70
01/18/08   981.5   +8.3   782.0  +13.7   439.9   -4.6   4,178.2  +16.9    5.49      5.51
01/11/08   906.4  +28.4   687.5  +10.1   461.2  +11.4   3,575.5  +43.4    5.62      5.77
01/04/08   706.0  +32.2   624.4   -4.1   414.0  +14.7   2,494.2  +53.9    5.73      6.04
12/28/07   533.9  -11.6   650.8   -9.0   360.8   -8.5   1,620.9  -15.4    6.05      6.00
12/21/07   603.8   -7.6   715.3   -1.5   394.5   -6.6   1,915.3   -8.5    6.10      6.03
12/14/07   653.8  -19.5   725.9   -1.0   422.2  -10.6   2,093.6  -27.3    6.18      6.48
12/07/07   811.9   +2.5   732.9   +3.7   472.0   +1.7   2,879.8   +4.3    6.07      6.31
11/30/07   791.8  +22.5   706.8   +4.5   464.3  +15.2   2,761.3  +31.9    5.82      6.28
11/23/07   646.3   -5.2   678.0   -1.1   403.2   -4.9   2,093.0   -4.9    6.09      6.24
11/16/07   681.7   -3.6   685.3   +0.9   424.1   -2.0   2,199.9   -5.0    6.18      5.98
11/09/07   707.3   +5.5   679.0   +1.9   432.6   +4.8   2,315.7   +6.4    6.19      5.98
11/02/07   670.6   -1.6   666.3   +0.7   412.7    0.0   2,176.1   -3.2    6.16      5.94
10/26/07   681.7   +3.8   661.6   +1.7   412.9   -0.7   2,249.0   +9.2    6.15      5.93
10/19/07   656.5   +0.0   650.4   +0.1   415.9   -3.1   2,059.3   +4.0    6.21      6.10
10/12/07   656.3   +0.7   649.8   -0.6   429.1   +2.1   1,980.9   -1.1    6.40      6.17
10/05/07   652.0   +2.4   654.0   -0.2   420.2   +2.1   2,003.2   +2.7    6.40      6.15
09/28/07   636.7   -2.7   655.4   +0.5   411.4   -1.8   1,950.4   -3.8    6.32      6.21
09/21/07   654.2   -2.8   651.9   +1.5   418.8   -7.3   2,026.5   +3.3    6.38      6.09
09/14/07   673.2   +2.4   642.2   +1.3   452.0   +0.9   1,962.0   +4.6    6.29      6.39
09/07/07   657.4   +5.5   634.2   -0.8   448.0   +5.2   1,876.6   +6.0    6.25      6.34
08/31/07   622.9   +1.3   639.5   -1.3   425.8   +0.4   1,770.2   +2.3    6.42      6.52
08/24/07   615.2   -4.0   647.9   +0.3   424.0   -4.0   1,729.6   -4.2    6.41      6.51
08/17/07   641.1   -5.5   645.8   +1.3   441.5   -5.0   1,806.3   -6.4    6.49      5.84
08/10/07   678.7   +3.4   637.8   +1.9   464.9   +3.9   1,929.6   +2.6    6.45      5.81
08/03/07   656.5   +8.1   626.0   +1.2   447.4   +7.4   1,881.1   +9.1    6.41      5.69
07/27/07   607.1   -0.3   618.5   -0.5   416.6   -1.8   1,724.1   +1.8    6.50      5.73
07/20/07   609.0   -3.6   621.6   -0.4   424.2   -5.0   1,692.9   -1.4    6.59      5.62
07/13/07   631.6   +0.9   624.0   -0.5   446.5   -1.6   1,717.4   +4.9    6.61      5.60
07/06/07   626.2   +1.1   627.0   -1.6   453.9   +3.8   1,636.9   -3.0    6.65      5.60
06/29/07   619.4   +0.1   637.1   -0.2   437.3   +2.0   1,687.2   -2.6    6.50      5.49
06/22/07   618.6   -3.9   638.5   -0.7   428.9   -4.9   1,731.6   -2.5    6.60      5.51
06/15/07   643.7   -3.4   643.0   -1.6   450.9   -3.0   1,776.8   -4.2    6.60      5.70
06/08/07   666.5   +6.6   653.6   -0.3   464.7   +7.2   1,854.8   +5.6    6.61      5.48
06/01/07   625.3   -1.7   655.8   -2.1   433.6   +1.5   1,757.1   -6.3    6.35      5.74
05/25/07   636.4   -7.3   669.7   -0.8   427.0   -2.5   1,874.6  -13.0    6.32      5.74
05/18/07   686.2   +1.6   674.9   +1.2   438.1   +1.3   2,154.7   +1.9    6.23      5.72
05/11/07   675.5   -0.8   666.7   +1.7   432.3   -1.4   2,115.5   +0.0    6.13      5.61
05/04/07   680.7   +3.6   655.4   +1.3   438.3   +2.6   2,115.2   +4.9    6.10      5.71

 *Data revised

[ozymandius]

35. Update to "The End of Wall Street"

http://www.ritholtz.com/blog/2009/01/end-of-wall-street-what-happened/

What Happened

Why It Happened

What Happens Next

It's worth watching all the way through.

[Roland99]

38. ADP shows 693,000 jobs lost in December

ADP shows 693,000 jobs lost in December
http://www.marketwatch.com/news/story/ADP-shows-693000-jobs-lost/story.aspx?guid=%7B11A2598F%2D2D9D%2D48D2%2DA934%2D144BA5E1BB9C%7D

WASHINGTON (MarketWatch) -- U.S. private-sector firms shed 693,000 jobs in December, far worse than expected, according to the ADP employment index released Wednesday.

Employment in the services sector fell by 473,000, while employment in the goods-producing sectors fell by 220,000.

Large firms cut 91,000 jobs, medium-sized firms cut 321,000 jobs and small firms cut 281,000 jobs.

"Sharply falling employment at medium- and small-size businesses clearly indicates that the recession has now spread well beyond manufacturing and housing-related activities," said economists for Macroeconomics Advisers in a press release.

They finally catching up to reality?

[Roland99]

50. Interesting note re: jobs numbers. People like me actually don't get counted

If I don't have a job by Feb. 2, I won't be technically unemployed. I'm still an employee of the placement company I work through but I wouldn't be earning a paycheck. Just applying for jobs where I fit and hoping for interviews and an eventual offer.

I'm far from alone in my situation, too.

[ozymandius]

40. Absolutely fugly futures numbers

S&P 500 -16.00 914.50 1/7 9:06am

NASDAQ -22.50 1248.50 1/7 9:05am

Dow Jones -126.00 8824.00 1/7 9:06am

[JNelson6563]

41. This could be a horribly bloody day

This thread needs to be kept near top of LBN as I suspect today may be quite memorable. DUers will want to be kept up to speed.

Julie

[CountAllVotes]

46. kick

:hi:

:dem: :kick:

[saigon68]

51. Agree K & R

[antigop]

48. Shock accounting scandal at Satyam may be biggest since Enron

http://financialweek.com/apps/pbcs.dll/article?AID=/20090107/REG/901079993/1036
Stunner: CEO admits 94% of outsourcing vendor's cash 'fictitious'; company recently won award for outstanding governance

In a stunning development, the head of Indian outsourcing firm Satyam Computer Services resigned on Wednesday, disclosing that profits had been falsely inflated for years and sending its shares tumbling nearly 80%.

India’s biggest corporate scandal in memory threatens future foreign investment flows into Asia’s third-largest economy and casts a cloud over growth in its once-booming outsourcing sector.

The news sent Indian equity markets into a tailspin, with Bombay’s main benchmark index tumbling 7.3% in a firmer session for world markets and the Indian rupee fell.

Ramalinga Raju, founder and chairman of India’s fourth-largest software services exporter, said in a statement that Satyam’s profits had been massively inflated over recent years but no other board member was aware of the financial irregularities.

“If a company’s chairman himself says they built fictitious assets, who do you believe here? This has put a question mark on the entire corporate governance system in India,” said R.K. Gupta, managing director at Taurus Asset Management in New Delhi.

Well, gee, the news just keeps getting better and better, doesn't it?
<edit to add> Can we stop the outsourcing crap now?

[JNelson6563]

52. Quite astounding.

This could leave a mark on the whole world economy. Ouch.

Julie

[specimenfred1984]

69. Good article, shows the worldwide depth of corruption

As the years and lies pasted by, as in "outsourcing creates jobs" told by numerous repukes, a person had to wonder just who the jobs were being outsourced to.

[antigop]

53. Social Security a Ponzi scheme? No way

http://money.cnn.com/2009/01/06/news/economy/social.security.fortune/index.htm?postversion=2009010709
Some commentators are finding a tempting comparison between the Madoff scandal and the Social Security system. Here's why it's wrong.

It was inevitable that once the phrase "Ponzi scheme" returned to the news in the wake of Bernard Madoff's alleged swindle, a chorus of angry voices would rise to condemn Social Security as, in their words, "the biggest Ponzi scheme of them all."

Their argument -- gaining momentum on the web, among some television commentators, and elsewhere (for examples, see "The Ponzi Scheme That is Social 'Security,' " "The Real 'Mother Of All Ponzi Schemes': Social Security" or "Madoff only the No. 2 Ponzi scheme") -- has a certain appeal because there are indeed some superficial similarities.

Essentially, here's their pitch: a Ponzi scheme is a fraud in which money from one group of people is used to pay promised returns to another group of people. The money isn't invested, it's just transferred, and at some point the scheme collapses because there's not enough income to satisfy withdrawals. (Madoff reportedly confessed to one of his sons that his $50 billion investment business fit that description.) Social Security's critics say it's a multitrillion-dollar Ponzi scheme because although individuals have "accounts," in fact the government uses income from current workers to pay benefits. When benefits exceed income, they say, the system will crumble, just like Madoff's.

It's hard to knock down such a persistent and seemingly elegant analogy. But since it creates a false impression of Social Security, and since I for one consider real Ponzi schemes too important and interesting to obfuscate, it's worth rebutting this myth.

[JNelson6563]

54. Wingers are shameless

They'll latch onto anything to end an effort that helps the greater good. Sickening.

Julie

[Hugin]

56. Thanks for posting this antigop.

Yeah, the RWNM is in full overdrive on the false comparison.

[antigop]

63. You're welcome, Prag! n/t

[ozymandius]

55. Re: a quick word on yesterday's request for a Job Search Forum.

I sent a PM to flamingyouth requesting the creation of said forum accompanied with the justifications. I also noted that, upon the creation of a Job Search forum, a permalink would be posted in the SMW main page.

Just so you know - action has been initiated. Perhaps it would be appropriate to second the request? :shrug:

[Hugin]

57. I think it's a great idea. n/t

[antigop]

58. Wonderful idea. I may soon be needing it myself. n/t

[Danascot]

64. There are a huge number of

employment search resources and how-tos on the intertubes. Maybe the Job forum could have a place for folks to post their recommendations for the best of these.

[ozymandius]

83. Valuable point.

I'm sure the forum can take a highly customizable form. Perhaps it can have its own wiki feature for updates in open source form.

[AnneD]

81. Will do and advise all SWT to do the same.....

how I finally got a job in the 80's was a friend of a friend network. I think we have a pretty good network on DU and can help each other.

It is community that keeps us strong.

Thanks for getting the ball rolling for us Ozy. :loveya:

Edited to add: Done! Post this again early in the morning and for the rest of the week so we can get most of our lurkers. I think it is a great idea-if I do say so myself. We aren't competing with Monster or those other sites but I know I feel better after visiting DU and usually get good tips from SWT (tips is a bad choice of words but you know what I mean.) Let's take this puppy out and she what she can do.

[Hugin]

59. Silver State Bancorp Bankrupt

"A Henderson-based holding company recently filed for bankruptcy. The filing reports show Silver State Bancorp, the holding company for Silver State Bank, recorded a 223-point-six-million dollar net loss in November 2008, a three-point-four-million dollar loss in 2007 and a loss of one-point-six-million in 2006. The numbers tell a different story than what was posted on the Nasdaq stock exchange, which showed Silver State making profits in 2006 and 2007. The holding company reported a net income of 22-point-five-million-dollars in 2006 and 28-point-two-million-dollars in 2007.


TM & Copyright 2009 KXNT Radio Inc."


http://www.kxnt.com/Silver-State-Bancorp-Bankrupt/3615181
____________________________________________________________________


Who was it auditing SSB?

[Dr.Phool]

60. John McCain?

[nc4bo]

61. There were a few of us screaming about Mccain's son slipping out the back door

of this mess just before it kicked the bucket. I think it was around August/Sept. this last year. Mccain's son Andrew served on the audit committee/board of directors.

Except for a few blogs and net chatter, M$M remained silent and the majority of the public was completely unaware.

Silver State Bank has a rather lurid, sordid history even before 2006-2008.

http://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=23618139&l=0&r=0&s=cmkx&t=LIST does a pretty good job of putting it on one short page but DU's own grantcart did a great job sounding the alarms and passing along information.

Scandalous.

[JNelson6563]

62. mm-hmm, that's right, I remember it well

:toast:

[cosmicdot]

70. McGladrey & Pullen

Who was it auditing SSB?

http://www.mcgladrey.com/

You would think the "executives" and Board members, especially those Board members who make up 'the Board Audit Committee' would have ultimate sign-off responsibility for audit reports ... that aside ... from the 2008 proxy http://idea.sec.gov/Archives/edgar/data/1362719/000119312508062718/ddef14a.htm:

'The Audit Committee of the Board of Directors has appointed the firm of McGladrey & Pullen, LLP to act as Silver State Bancorp’s independent registered public accounting firm for the fiscal year ending December 31, 2008.'

The Audit Committee consists of Messrs. McCain, McCall and Norby ... Andrew McCall, John's son.

'For the fiscal year ended December 31, 2007, McGladrey & Pullen billed Silver State Bancorp an aggregate of $887,762 for professional services rendered.'

McGladrey & Pullen were the auditors named in the 2007 proxy, too.

'The Audit Committee of the Board of Directors has appointed the firm of McGladrey & Pullen, LLP to act as Silver State Bancorp’s independent registered public accounting firm for the fiscal year ending December 31, 2007'

http://idea.sec.gov/Archives/edgar/data/1362719/000119312507204840/ddef14a.htm

[UpInArms]

78. FDIC Closes the Silver State Bank in Nevada as a McCain Resigns in Disgrace

http://www.nolanchart.com/article4744.html

Andrew McCain, son of John McCain, resigns from the board just before yet another small bank goes under. $20 million in uninsured deposits lost. And by the way, did you know the American banking system may crash? Learn how to protect yourself and your family.
by Jake, the Champion of the Constitution
(libertarian)
Sunday, September 7, 2008

On Friday, the FDIC sent a task force to close down yet another small bank in Nevada, making it the 11th bank failure of 2008. Silver State Bank had $1.7 billion in deposits of which $20 million in 500 accounts was uninsured. Most likely these individuals will think twice before voting Republican as John McCain's adopted son from his first marriage, Andrew McCain, aged 46, was a director of the bank and resigned in July due to "personal reasons" as the Wall Street Journal reports here. McCain was part of a three-person audit team and was responsible for the financial health of the bank. If McCain had resigned four days later, he would have been required to sign off on the company's quarterly financial statement.

Andrew McCain had been involved with the bank since 2006 when he became director of Choice Bank, a small Arizona-based lender owned by Silver State where the McCain family was an early investor. He is currently employed by his adopted father's second wife, Cindy McCain, as the Chief Financial Officer of Hensley & Co., the family's main business which distributes beer. I want to add that there is no evidence that Andrew McCain has committed any crime besides ineptness.

It appears the FDIC tried to close the bank in August but was refused by the Nevada Division of Financial Institution until September. By June 30, the bank's borrowers had fallen behind on about $252 million worth of loans, compared to about $11.5 million from six months earlier. I speculate that the announcement was delayed until after the Republican Convention to help John McCain out.

John McCain, of course, is no stranger to prior banking scandals, the most infamous of which was the Savings and Loan scandal where he was one of the "Keating Five" Senators whom allegedly helped banker Charles Keating resist regulators. Keating was convicted and sent to jail, and McCain received a figurative slap on the wrist. Keating was a major contributor and supporter at the very start of McCain's political career. The S&L scandal resulted in a taxpayer-funded bailout of $125 billion.

...more...

[ozymandius]

85. If I were a bank executive -

I would not want any member of either that McCain family or that Bush family near my business.

[Robbien]

75. S&P Downgrades Detroit to Junk

Detroit lost its investment-grade rating from Standard & Poor's on $2.4 billion of outstanding debt late Tuesday as the city's finances have deteriorated amid an ongoing structural budget imbalance.

Standard & Poor's knocked the city's unlimited-tax general obligation rating down to BB from BBB and its limited-tax GO rating to BB from BBB-minus, the lowest investment-grade rating. The outlook is stable. Structural changes made in recent years have so far failed to keep pace with operational need and the city currently anticipates an operational deficit in fiscal 2009. The recession's negative impact on revenue is further hurting the city's ability to recover.


The structural imbalance has continued to mount as Detroit ended fiscal years between 2003 and 2006 with negative unreserved general fund balances. Officials project break-even operations for fiscal 2007, but are not yet sure whether fiscal 2008 was fiscally balanced, while another operational deficit is expected in fiscal 2009.

The budget is being further stressed by a drop in some revenue sources. Analysts said the current fiscal problems make it all the more difficult to assess the city's financial position as its audits are chronically late. Detroit also has tended to close its books on the year with final numbers that fall short of previous projections.

http://www.bankinvestmentconsultant.com/asset/article/2653091/sp-downgrades-detroit-junk.html?pg=


It appears it is not all about automobiles either:

Cockrel, the former City Council president, took over as mayor in September after former Mayor Kwame Kilpatrick resigned as part of a plea deal with the Wayne County prosecutor's office. The tumult grew out of a public corruption scandal in which Kilpatrick and his former chief of staff were accused of lying under oath during a 2007 police whistleblower trial.

[ozymandius]

86. Close: we've seen more grotesque hemmorhaging but this was intense.

Dow 8,769.70 Down 245.40 (2.72%)
Nasdaq 1,599.06 Down 53.32 (3.23%)
S&P 500 906.65 Down 28.05 (3.00%)
10-Yr Bond 2.494% Down 0.011
NYSE Volume 5,363,058,000
Nasdaq Volume 2,074,285,875

4:30 pm : A batch of negative news items provided market participants with an excuse to sell into the stock market's recent gains. Trading volume remains low, though, suggesting there is still little conviction behind the moves.

Heading into the open, stocks were up roughly 3.5% through the first few sessions of 2009. Stocks finished this session a bit off their lows with a 3.0% loss, which is the largest decline in more than one month.

Only 1.2 billion shares traded hands on the NYSE. Though that is in-line with recent levels, it remains well below longer-term trends.

A worse-than-expected ADP employment report and a warning from Intel (INTC 14.44, -0.93) underpinned early weakness.

The ADP report indicated 693,000 jobs were lost in December. The consensus called for 493,000 job losses. The data support economists' opinions that government data will show a rise in the national unemployment rate, which is scheduled to be announced Friday.

Intel cut its fourth quarter revenue estimate for the second time due to continued weakness in its end markets. The company now expects revenue of $8.2 billion, though Wall Street pegged the consensus estimate at $8.7 billion. Shares of INTC traded markedly lower in response. Their weakness weighed on the tech sector (-3.7%) and the Nasdaq.

Dow component Alcoa (AA 10.89, -1.23) also made headlines, though its story wasn't much of a surprise. The company announced it will reduce output, capital expenditures, and its global workforce as it contends with a softer economic environment. Such broader headwinds have been hanging over the stock for the last several months.

Bank of America (BAC 13.71, -0.57) also made headlines when it announced it is selling part of its stake in China Construction Bank for some $2.8 billion.

BAC and peers JPMorgan Chase (JPM 28.09, -1.79) and Wells Fargo (WFC 25.87, -1.67) traded as laggards in the financial sector as investors were reminded that banks have a long way to recovery. Analysts at Oppenheimer expect banks will have to raise capital in 2009, even though banks have already gone on several capital raising campaigns. Such a move could dilute existing shareholders.

Financials finished 5.1% lower, replacing energy as the session's worst performing economic sector.

Energy shed 3.9% as crude futures fell nearly 12% to close at roughly $42.80 per barrel.

Crude dropped as bearish inventory data put demand concerns back into focus. Analysts expected the Department of Energy to report a weekly build of 800,000 barrels, but a build of 6.68 million barrels was reported, instead.

The materials sector was able to limit its losses due to strength in Monsanto (MON 86.16, +12.94). Monsanto reported adjusted earnings of $0.90 per share, and raised its outlook for fiscal 2009. The company now expects earnings to range from $4.40 and $4.50 per share. The outlook remains short of the consensus forecast, though.

Still, MON gained nearly 18% to finish at its highest level in nearly two months. That provided a bit of relief to the beaten down materials sector, which finished 1.6% lower.DJ30 -245.40 NASDAQ -53.32 NQ100 -2.8% R2K -3.4% SP400 -3.3% SP500 -28.05 NASDAQ Dec/Adv/Vol 2027/713/2.07 bln NYSE Dec/Adv/Vol 2490/622/1.24 bln

[dweller]

92. and the year started off on a such a high note...

:eyes:

interesting to note your prev. post on futures:

S&P 500 -16.00 914.50 1/7 9:06am

NASDAQ -22.50 1248.50 1/7 9:05am

Dow Jones -126.00 8824.00 1/7 9:06am


so, we can just take those #'s and roughly double them, rule of thumb: it's twice as bad as predicted, half as good on an upday?

i'm still learning,
dp