STOCK MARKET WATCH, Thursday February 4

[ozymandius]

Source: du

STOCK MARKET WATCH, Thursday February 4, 2010

Bush Administration Officials Convicted = 2
Name(s): David Safavian, James Fondren

Bush Administration Officials Charged = 1
Name(s): Richard Lopez Razo

Financial Sector Officials Convicted since 1/20/09 = 11

AT THE CLOSING BELL ON February 3, 2010

Dow... 10,270.55 -26.30 (-0.26%)
Nasdaq... 2,190.91 +0.85 (+0.04%)
S&P 500... 1,097.28 -6.04 (-0.55%)
Gold future... 1,112 -5.60 (-0.50%)
10-Yr Bond... 3.70 +0.06 (+1.73%)
30-Year Bond 4.64 +0.08 (+1.78%)

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

Market Conditions During Trading Hours

GOLD, EURO, YEN, Loonie, Silver and US$

---

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---

This thread contains opinions and observations. Individuals may post their experiences, inferences and opinions on this thread. However, it should not be construed as advice. It is unethical (and probably illegal) for financial recommendations to be given here.

Read more: du

[ozymandius]

1. Market Observation

The Guy Behind the Guy is You and I
BY CHRIS PUPLAVA

To end 2009 I penned a piece titled, “2010: A Good Year for the Economy and a Mediocre Year for Stocks?” Essentially, looking towards 2010 my assumption was that the stock market had already priced in much of the economic improvement that is to come in 2010 and would not react as favorably to good economic news releases, a “buy the rumor sell the news” story if you will. The question is, if 2010 is not be an extremely impressive year for the stock market, will it represent a pause in the cyclical bull market that began at the March 2009 lows or a top?

As stated above, my going assumption was to not expect a dynamic year for the stock market even though overall economic growth rates would improve. This is not an uncommon situation as this was exactly the case in the 03/04 and 74/75 experiences. You can see this below when looking at how the S&P behaved after the bottom of the 1974 and 2003 cycles compared to the present case. In the 1974 cycle the S&P 500 corrected roughly 14.3% as it moved back towards its 200 day moving average (200d MA) before heading to a new high. In the 2003 cycle, the S&P 500 underwent a moderate consolidation in which it declined just under 10% over a five month period. The current cycle put in a peak in between the durations of the 1974 cycle and 2003 cycle tops and appears to be undergoing more of a correction like the 1974 example as the January decline is steeper than the sideways movement of the 2004 consolidation.

-chart-

The key question for equity investors is not whether we will or will not consolidate/correct, but rather what comes next. Do we exhibit lift off like we did in 1975 and later in 2004 or do we roll over into another cyclical bear market? From an asset allocation standpoint, the outperformance of stocks relative to long-term Treasuries (LT USTs) argues for a bit of caution here as it did in 2004. You can see this below when looking at the year-over-year (YOY) total return for the S&P 500 less the LT UST bond return. We are currently nearing two standard deviations above the mean which has often marked peaks in terms of the stock market’s relative performance to LT USTs, which would argue that bonds are likely to outperform stocks over the course of the next year.

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

[Demeter]

14. Tea Leaves, Anyone?

This seems totally useless. Am I missing something?

[ozymandius]

20. I really get little from Mr. Puplava's posts.

He likes to filter data through a precious metals worldview. My opinion is that his assessments suffer from extreme myopia.

[Po_d Mainiac]

27. agree totally n/t

[ozymandius]

2. Today's Reports

08:30 Initial Claims 01/30
Briefing.com 460K
Consensus 455K
Prior 470K

08:30 Continuing Claims 01/15
Briefing.com 4550K
Consensus 4581K
Prior 4602K

08:30 Productivity-Prel Q4
Briefing.com 6.2%
Consensus 6.5%
Prior 8.1%

08:30 Unit Labor Costs - Preliminary Q4
Briefing.com -2.0%
Consensus -3.4%
Prior -2.5%

10:00 Factory Orders Dec
Briefing.com 0.9%
Consensus 0.5%
Prior 1.1%

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

[UpInArms]

28. 8:30 bucketfull of bad numbers - Initial Claims @ 480,000

8:30a U.S. Q4 productivity up 6.2% vs.7.3% expected

8:30a U.S. continuing claims up 2,000 to 4.60 mln

8:30a U.S. 4-week avg. claims up 11,750 to 468,750

8:30a U.S. jobless claims highest since Dec. 12

8:30a U.S. jobless claims up 8,000 to 480,000

8:30a U.S. productivity up 2.9% '09, fastest since '03

8:30a U.S. Q4 unit labor cost down 4.4%

8:30a U.S. Q4 productivity up 6.2% vs.7.3% expected

8:30a U.S. continuing claims up 2,000 to 4.60 mln

8:30a U.S. 4-week avg. claims up 11,750 to 468,750

8:30a U.S. jobless claims highest since Dec. 12

[Robbien]

34. Poof: Another 800,000 jobs disappear

NEW YORK (CNNMoney.com) -- As bad as the government's jobs readings numbers have been during the Great Recession, we'll soon find out the real situation likely was worse.

Much worse.

. . .

The new reading will come when the economists at the department's Bureau of Labor Statistics release their annual revision of U.S. payrolls from April 2008 through March of 2009 Friday, using data that wasn't available as the monthly readings were being estimated and reported.

Typically the revision results in only a slight change in the previous estimate -- about 0.1% to 0.2% of the total number of jobs. But there was nothing typical about the twelve month stretch that ended last March.

That period included the bankruptcy of Lehman Brothers, the seizing up of financial markets and the U.S. economy toppling close to the brink of another depression.
Battle brews over hourly jobs

The government's current readings show that 4.8 million jobs were lost in those twelve months, more than twice the jobs lost during any comparable April-March period going back to 1939, when the numbers first started to be compiled.

But the department has already given a preliminary look at this Friday's revision, and it says it believes it will show 824,000 fewer workers on payrolls than the current estimates. That would be the biggest downward revision in the 30 years for which comparisons of those adjustments is possible.

"There's certainly a disconnect between economists like myself who say the recession ended in May or June and the person on the street who says the recession hasn't ended," said John Canally, economist LPL Financial. "This report is only going to widen that gap."

http://money.cnn.com/2010/02/04/news/economy/jobs_outlook/

[ozymandius]

3. Oil falls to near $76 amid sluggish US demand

SINGAPORE – Oil prices fell to near $76 a barrel Thursday in Asia amid investor concern that sluggish economic growth in developed countries will keep crude demand muted. ...

On Wednesday, the Energy Department's Energy Information Administration said U.S. crude inventories rose 2.3 million barrels. Analysts had expected a drop of 1.0 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

In other Nymex trading in March contracts, heating oil was down 0.8 cent at $2.01 a gallon, and gasoline fell 1 cent to $2.026 a gallon. Natural gas rose 4.1 cents to $5.46 per 1,000 cubic feet.

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

[ozymandius]

4. Shell makes Q4 profit of $1.96B, to cut more jobs

AMSTERDAM – Royal Dutch Shell PLC on Thursday reported a fourth quarter net profit of $1.96 billion, due to higher oil prices, but said refining margins were poor and announced plans for 1,000 new job cuts.

The profit compares with a loss of $2.81 billion in the same period a year ago, when the company had to write down the value of its inventory after a sharp fall in the price of oil.

However, stripping out the cost of inventories, profit was $1.18 billion, down 75 percent from $4.79 billion. ...


The company's production arm saw profits fall 46 percent in the fourth quarter to $2.54 billion, due only partly to a one-time gain of $1.4 billion in the same period a year earlier.

Although oil prices rose, Shell produces about as much gas as oil, and a sharp decline in natural gas prices meant that Shell's selling prices actually fell.

http://news.yahoo.com/s/ap/20100204/ap_on_bi_ge/eu_netherlands_earns_shell_2

[ozymandius]

5. Toyota Concerns Weigh on Nikkei

...
Japan's Nikkei Stock Average of 225 companies finished 0.5% lower at 10,355.98, Australia's S&P/ASX 200 fell 0.6%, China's Shanghai Composite slipped 0.3%, Hong Kong's Hang Seng Index gave up 1.8%, South Korea's Kospi inched up 0.1% and Taiwan's Taiex slipped 0.1%.

In afternoon trade, India's Sensex fell 1% and Singapore's Straits Times Index slid 0.7%. ...

Toyota Motor's 3.5% drop on deepening concerns over the impact of its large-scale vehicle recall in the U.S. and Europe pressured the Tokyo market. U.S. Transportation Secretary Ray LaHood's comments Wednesday that his agency was widening its probe of sudden acceleration complaints in Toyota vehicles, as well as fresh troubles reported over the brakes of the Prius gas-electric hybrid weighed on sentiment.

The fall in Tokyo also came ahead of results from Toyota and Sony Corp. "There are few trading cues for the broader market, so the focus will be on individual factors," said Nikko Cordial senior strategist Tsuyoshi Kawata.

more here on Asian markets

[Festivito]

6. Debt: 02/02/2010 12,360,943,989,345.48 (UP 11,480,404,278.06) (Tue)

(Down a little. Debt seems to jump up big then drop slowly maybe up a little and down a little for days--repeat. Good day all.)

= Held by the Public + Intragovernmental(FICA)
= 7,849,743,504,000.83 + 4,511,200,485,344.65
DOWN 66,012,400.47 + UP 11,546,416,678.53

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

THINKING IN BILLIONS: Think 3 or 4 dollars per billion in a 309-Million person America.
If every American, man, woman and child puts in $3.24 each THAT'S 1B$.
A family of three: Mom, Dad, Child: $9.72, ABOUT TEN BUCKS for a 1B$ 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 the 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)

PERSONALIZED DEBT:
Every 10 seconds we net gain another American, so at the end of the workday of the report, there should be 308,634,078 people in America.
http://www.census.gov/population/www/popclockus.html ON 11/07/2009 08:19 -> 307,879,272
Currently, each of these Americans owe $40,050.48.
A family of three owes $120,151.45. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 22 reports in the last 30 to 33 days.
The average for the last 22 reports is 2,254,286,901.52.
The average for the last 30 days would be 1,653,143,727.78.
The average for the last 33 days would be 1,502,857,934.35.
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$/day.
There were 75 reports in 112 days of GWB's part of FY2009 averaging 8.03B$ per report, 5.38B$/day.
There were 174 reports in 253 days of Obama's part of FY2009 averaging 7.33B$ per report, 5.07B$/day so far.
There were 249 reports in 365 days of FY2009 averaging 7.57B$ per report, 5.16B$/day.
There were 84 reports in 125 days of FY2010 averaging 5.37B$ per report, 3.61B$/day.
Above line should be okay

PROJECTION:
There are 1,083 days remaining in this Obama 1st term.
By that time the debt could be between 13.8 and 18.0T$.
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)
01/20/2009 10,626,877,048,913.08 GWB (UP 4,898,681,252,731.43)
02/02/2010 12,360,943,989,345.48 BHO (UP 1,734,066,940,432.40 so far since Obama took office.)

FISCAL YEAR DEBT CHANGE, Sep 30 prior year to Sep 30 named year:
(One "* " for each 40B$ reached)
FY1994 +0,281,261,026,873.94 ------------* * * * * * * WJC
FY1995 +0,281,232,990,696.07 ------------* * * * * * * WJC
FY1996 +0,250,828,038,426.34 ------------* * * * * * WJC
FY1997 +0,188,335,072,261.61 ------------* * * * WJC
FY1998 +0,113,046,997,500.28 ------------* * WJC
FY1999 +0,130,077,892,735.81 ------------* * * WJC
FY2000 +0,017,907,308,253.43 ------------WJC
FY2001 +0,133,285,202,313.20 ------------* * * C&B
01-WJC +0,053,598,528,417.78 ------------* WJC 31% of FY, 40% of FY-Debt
01-GWB +0,079,686,673,895.42 ------------* GWB 69% of FY, 60% of FY-Debt
FY2002 +0,420,772,553,397.10 ------------* * * * * * * * * * GWB
FY2003 +0,554,995,097,146.46 ------------* * * * * * * * * * * * * GWB
FY2004 +0,595,821,633,586.70 ------------* * * * * * * * * * * * * * GWB
FY2005 +0,553,656,965,393.18 ------------* * * * * * * * * * * * * GWB
FY2006 +0,574,264,237,491.73 ------------* * * * * * * * * * * * * * GWB
FY2007 +0,500,679,473,047.25 ------------* * * * * * * * * * * * GWB
FY2008 +1,017,071,524,649.92 ------------* * * * * * * * * * * * * * * * * * * * * * * * * GWB
FY2009 +1,885,104,106,599.30 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B&O
09GWB +0,602,152,152,000.60 ------------* * * * * * * * * * * * * * * GWB 31% of FY, 32% of FY-Debt
09-BHO +1,282,951,954,598.70 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO 69% of FY, 68% of FY-Debt
FY2010 +0,451,114,985,833.70 ------------* * * * * * * * * * * BHO
Endof10 +1,317,255,758,634.41 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Linear Projection

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
01/12/2010 +000,163,748,521.92 ------------********
01/13/2010 -000,144,326,167.15 ---
01/14/2010 -025,105,278,682.17 -
01/15/2010 +057,080,501,160.91 ------------**********
01/19/2010 -000,292,818,574.91 --- Tue
01/20/2010 +001,498,198,188.82 ------------*********
01/21/2010 -031,161,420,148.11 -
01/22/2010 -000,070,049,877.74 ----
01/25/2010 -000,041,466,126.01 ---- Mon
01/26/2010 +000,973,181,275.87 ------------********
01/27/2010 +000,063,416,019.94 ------------*******
01/28/2010 -024,245,578,618.07 -
01/29/2010 -000,416,981,206.21 ---
02/01/2010 +090,319,223,365.33 ------------********** Mon
02/02/2010 -000,066,012,400.47 ----

68,554,336,731.95 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008 while Bush was in power JUST BEFORE fiscal year end.
Bush admin borrowed $962,245,245,654.01 in those last 124 days in office crossing two fiscal years.
$360,093,093,653.42 in last 12 days of FY2008, and $602,152,152,000.59 in subsequent 112 days before leaving office.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock
http://www.usdebtclock.org/
DUer primer on National debt

(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=4254322&mesg_id=4254343

[Festivito]

89. Debt: 02/03/2010 12,354,041,054,846.90 (DOWN 6,902,934,498.58) (Wed)

(Down a little. Debt seems to jump up big then drop slowly maybe up a little and down a little for days--repeat. Good day all.)

= Held by the Public + Intragovernmental(FICA)
= 7,850,078,042,131.27 + 4,503,963,012,715.63
UP 334,538,130.44 + DOWN 7,237,472,629.02

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

THINKING IN BILLIONS: Think 3 or 4 dollars per billion in a 309-Million person America.
If every American, man, woman and child puts in $3.24 each THAT'S 1B$.
A family of three: Mom, Dad, Child: $9.72, ABOUT TEN BUCKS for a 1B$ 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 the 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)

PERSONALIZED DEBT:
Every 10 seconds we net gain another American, so at the end of the workday of the report, there should be 308,642,718 people in America.
http://www.census.gov/population/www/popclockus.html ON 11/07/2009 08:19 -> 307,879,272
Currently, each of these Americans owe $40,027..
A family of three owes $120,080.99. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 23 reports in the last 30 to 34 days.
The average for the last 23 reports is 1,856,146,840.65.
The average for the last 30 days would be 1,423,045,911.16.
The average for the last 34 days would be 1,255,628,745.14.
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$/day.
There were 75 reports in 112 days of GWB's part of FY2009 averaging 8.03B$ per report, 5.38B$/day.
There were 174 reports in 253 days of Obama's part of FY2009 averaging 7.33B$ per report, 5.07B$/day so far.
There were 249 reports in 365 days of FY2009 averaging 7.57B$ per report, 5.16B$/day.
There were 85 reports in 126 days of FY2010 averaging 5.23B$ per report, 3.53B$/day.
Above line should be okay

PROJECTION:
There are 1,082 days remaining in this Obama 1st term.
By that time the debt could be between 13.7 and 17.9T$.
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)
01/20/2009 10,626,877,048,913.08 GWB (UP 4,898,681,252,731.43)
02/03/2010 12,354,041,054,846.90 BHO (UP 1,727,164,005,933.82 so far since Obama took office.)

FISCAL YEAR DEBT CHANGE, Sep 30 prior year to Sep 30 named year:
(One "* " for each 40B$ reached)
FY1994 +0,281,261,026,873.94 ------------* * * * * * * WJC
FY1995 +0,281,232,990,696.07 ------------* * * * * * * WJC
FY1996 +0,250,828,038,426.34 ------------* * * * * * WJC
FY1997 +0,188,335,072,261.61 ------------* * * * WJC
FY1998 +0,113,046,997,500.28 ------------* * WJC
FY1999 +0,130,077,892,735.81 ------------* * * WJC
FY2000 +0,017,907,308,253.43 ------------WJC
FY2001 +0,133,285,202,313.20 ------------* * * C&B
01-WJC +0,053,598,528,417.78 ------------* WJC 31% of FY, 40% of FY-Debt
01-GWB +0,079,686,673,895.42 ------------* GWB 69% of FY, 60% of FY-Debt
FY2002 +0,420,772,553,397.10 ------------* * * * * * * * * * GWB
FY2003 +0,554,995,097,146.46 ------------* * * * * * * * * * * * * GWB
FY2004 +0,595,821,633,586.70 ------------* * * * * * * * * * * * * * GWB
FY2005 +0,553,656,965,393.18 ------------* * * * * * * * * * * * * GWB
FY2006 +0,574,264,237,491.73 ------------* * * * * * * * * * * * * * GWB
FY2007 +0,500,679,473,047.25 ------------* * * * * * * * * * * * GWB
FY2008 +1,017,071,524,649.92 ------------* * * * * * * * * * * * * * * * * * * * * * * * * GWB
FY2009 +1,885,104,106,599.30 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B&O
09GWB +0,602,152,152,000.60 ------------* * * * * * * * * * * * * * * GWB 31% of FY, 32% of FY-Debt
09-BHO +1,282,951,954,598.70 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO 69% of FY, 68% of FY-Debt
FY2010 +0,444,212,051,335.20 ------------* * * * * * * * * * * BHO
Endof10 +1,286,804,751,883.72 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Linear Projection

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
01/13/2010 -000,144,326,167.15 ---
01/14/2010 -025,105,278,682.17 -
01/15/2010 +057,080,501,160.91 ------------**********
01/19/2010 -000,292,818,574.91 --- Tue
01/20/2010 +001,498,198,188.82 ------------*********
01/21/2010 -031,161,420,148.11 -
01/22/2010 -000,070,049,877.74 ----
01/25/2010 -000,041,466,126.01 ---- Mon
01/26/2010 +000,973,181,275.87 ------------********
01/27/2010 +000,063,416,019.94 ------------*******
01/28/2010 -024,245,578,618.07 -
01/29/2010 -000,416,981,206.21 ---
02/01/2010 +090,319,223,365.33 ------------********** Mon
02/02/2010 -000,066,012,400.47 ----
02/03/2010 +000,334,538,130.44 ------------********

68,725,126,340.47 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008 while Bush was in power JUST BEFORE fiscal year end.
Bush admin borrowed $962,245,245,654.01 in those last 124 days in office crossing two fiscal years.
$360,093,093,653.42 in last 12 days of FY2008, and $602,152,152,000.59 in subsequent 112 days before leaving office.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock
http://www.usdebtclock.org/
DUer primer on National debt

(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=4255605&mesg_id=4255619

[ozymandius]

7. U.S. Stock-Index Futures Retreat Amid Sovereign Debt Concern

Feb. 4 (Bloomberg) -- U.S. stock-index futures dropped, indicating the Standard & Poor’s 500 Index may decline for a second day, amid heightened concern that Greece, Spain and Portugal will struggle to curb their deficits.

Shares of Boeing Co. may fall after the company together with rival Airbus SAS said it expects a demand slump to continue for at least two more years. Cisco Systems Inc. rallied in German trading after the biggest maker of networking equipment forecast sales growth to accelerate this quarter. Twenty-four companies in the S&P 500 are reporting earnings today, including Kellogg Co. the largest U.S. breakfast-cereal maker.

S&P 500 futures expiring in March slipped 0.6 percent to 1,089.3 at 10:16 a.m. in London. Dow Jones Industrial Average futures decreased 0.5 percent to 10,185 and Nasdaq-100 Index futures lost 0.4 percent to 1,777.5.

Credit-default swaps on Portugal’s government debt rose 15 basis points to a record 211, according to CMA DataVision prices. Contracts on Greece also jumped, rising 18 basis points to 415.5, while Spain increased 12 basis points to 164.

Last month, the S&P 500 lost 3.7 percent as concern grew over sovereign debt, China stepped up measures to curb lending and President Barack Obama proposed measures to rein in risk- taking at banks.

http://www.businessweek.com/news/2010-02-04/u-s-stock-index-futures-retreat-amid-sovereign-debt-concern.html

[Robbien]

36. The WSJ says there is panic buying in the foreign swap credit market

when Portugal couldn't get anyone to buy its debt.

Wall Street is tanking this morning, almost two hundred points in the first hour.

[Demeter]

40. Today's Theme Song

http://www.youtube.com/watch?v=Anq4wdZc2Ow&feature=related

[ozymandius]

8. Treasury offers loans to banks funding community development

The Treasury Department said Wednesday that it will offer up to $1 billion in low-cost loans to banks that focus on funding development in lower-income communities, part of the administration's new emphasis on helping smaller banks.

The special program, which offers more favorable terms than those available to most banks, will benefit a group of institutions long embraced by Democratic politicians for working in areas where mainstream banks make few loans. ...

The government will offer loans to about 60 banks and 150 credit unions that are certified as community development financial institutions. The loans will carry an interest rate of 2 percent, less than the 5 percent paid by other banks. Treasury also will lower eligibility standards, allowing less healthy banks to qualify if they can raise matching funds from private investors.

The money will come from the $700 billion allocated by Congress to rescue the financial industry. Unlike other recent administration proposals, it does not require congressional approval.

http://www.washingtonpost.com/wp-dyn/content/article/2010/02/03/AR2010020303882.html

[ozymandius]

9. Retailers Likely to Close More U.S. Stores: Analysis

Feb. 4 (Bloomberg Multimedia) -- Retailers are likely to close more U.S. stores to cut costs in the months ahead after expanding during the recession, an analysis shows.

Click here for a Bloomberg Multimedia interactive visual analysis of retail store numbers.

http://www.bloomberg.com/apps/news?pid=20601109&sid=apMxt6_iwOeM&pos=10

The link to the multimedia presentation is the main attraction as no additional info is found at the page link. The mind-jarring forecast calls for nearly 967k jobs to be lost as retail reassesses its culture since the beginning of the Great Recession.

[DemReadingDU]

15. Interesting interactive presentation

Similar to the one yesterday that Bloomberg did for the upcoming revision to employment data to show a loss of 824,000 jobs

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=4254322&mesg_id=4254579


So by combining these 2 visuals, they show almost 2 million lost jobs! Whoever thinks we are in a 'recovery', are not paying attention.

[ozymandius]

19. I wonder how much overlap these two reports have?

Is one predicated on the other? Are these reports conveying similar metrics? Inquiring minds want to know.

[4dsc]

45. Doesn't look good for consumerism...

Since we have created an economic model that isn't sustainable I expect too more of this.

[ozymandius]

10. China’s Labor Edge Overpowers Obama’s ‘Green’ Jobs Initiatives

Feb. 4 (Bloomberg) -- President Barack Obama is spending $2.1 million to help Suntech Power Holdings Co. build a solar- panel plant in Arizona. It will hire 70 Americans to assemble components made by Suntech’s 11,000 Chinese workers.

That gap shows the challenge Obama faces as he works to create “green” jobs. Asia makes more than half the world’s wind and solar energy equipment, and is gaining ground as U.S. factories lose out to cheaper labor and higher demand for clean energy. China for the first time topped the U.S. in wind-turbine manufacturing and installations last year, the Brussels-based Global Wind Energy Council said yesterday in a report.

Obama is giving billions of dollars in tax breaks to the wind and solar industries to create jobs in the U.S. even as production expands faster overseas. First Solar Inc., the world’s largest maker of thin-film solar-power modules, won $16.3 million to add 200 manufacturing jobs at its Ohio plant, yet 71 percent of its planned factory growth will go to Malaysia. The company employs 4,500 globally. ....

http://www.bloomberg.com/apps/news?pid=20601109&sid=adIdrmtTtyw8

---

If the powdered wigged Senate continues to sit on its collective ass then we will see many more stories like this.

[Demeter]

16. Thank Ronald Reagan for Hatcheting Carter's Solar Intitiatives

may he freeze in darkest hell for eternity.

[AnneD]

22. Morning Marketeers...

:donut: and lurkers.

Suppose they gave a convention and no one came.....

Yesterday the Neocon blogs were abuzz with the news that Houston was 4th in the running to host the GOP convention. But when folks started calling City officials to confirm or deny-no one had a clue. One one had even filed to be in the running:rofl::rofl::rofl::rofl:

Wait til the boycott Houston church group in Amarillo gets wind of it. Imagine the GOP forced to have their convention in a town full of drinkers, baby killers and governed by an ELECTED sodomite.That will go over about as well as a pregnant pole vaulter. I can't wait for all the theater, it should be of biblical proportion.::popcorn:

Frankly, we can do without the traffic jams. We have enough problems with the air quality now.:eyes:

Happy hunting and watch out for the bears...

[Demeter]

41. G7 Is So Shell-Shocked, They Are Going to the Arctic Circle in Canada

"to see the pristine North", and after the 500 of them leave, it won't be so pristine, I'll betcha.

http://www.marketwatch.com/story/g7-to-complain-shiver-in-great-white-north-2010-02-04?siteid=YAHOOB

G7 finance ministers to shiver, complain in Canada

[golfguru]

56. China exports green energy products and keeps building coal power plants

I guess Chinese do not see the benefits of green energy.

China is building 1 NEW coal power plant every week!

[Demeter]

60. With All That Particulate Pollution and Acid Rain

Solar cells wouldn't work very well or for very long...coal is cheap there, if you don't count dead miners. And besides, it's jobs...

[ozymandius]

11. Billionaire Whistle Blower Loses $730 Million Alleging Fraud

Feb. 4 (Bloomberg) -- On a December afternoon in 2007, billionaire Jose Berardo walked into the attorney general’s 18th-century headquarters in Lisbon to rat out executives at the Portuguese bank on which he had staked his fortune.

Berardo, whose 7 percent share in Banco Comercial Portugues SA was worth about $1 billion at the time, says he met with Attorney General Fernando Pinto Monteiro for two hours. The investor handed Portugal’s top prosecutor several folders of evidence showing that executives at Portugal’s largest publicly traded bank had allegedly used offshore companies to try to boost the share price and their own bonuses. Berardo says he hoped his disclosure would spur the prosecution of the Oporto- based bank’s chairman, with whom the investor had clashed over governance issues, Bloomberg Markets magazine reports in its March issue. ...

Berardo’s public attack on the bank’s executives, including an impromptu press conference he held immediately after his visit with the attorney general, was extraordinary in Portugal’s financial industry. Regulators and executives tend to address violations between themselves without public disclosure, says Antonio Ramirez, a banking analyst at Keefe, Bruyette & Woods in London. ...

From 1999 to 2003, BCP loaned 590 million euros ($843 million) to 17 Cayman Islands-based companies it controlled without accounting for the debt on its books, according to prosecutors’ accusations filed in a Lisbon court. The offshore companies used the cash to buy almost 5 percent of BCP’s stock to boost its value, according to the accusations.

Prosecutors say the operation backfired when Portuguese stocks, including BCP’s, dropped in 2001 and 2002, preventing the offshore companies from paying back the loans. Executives disguised the bad loans as real estate losses, which inflated the bank’s earnings and propped up the flagging shares, prosecutors say.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aIxF2nwtfmxE

---

As the saying goes: if it can happen there - it can happen here.. Whatcha wanna bet that the Portugese banksters have American bankster company in the Caymans?

[zbdent]

12. Since this is a discussion about the stock market's changes, I'll add this ...

I've noticed that the stock market was going up relatively steadily under Obama ... but then, the instant all the media started pointing out that Brown's win in Massachusetts was going to derail any change, the stock market started having serious drops ...

and ...

after Obama spanked the Repugs publicly (and in the forum they set up to play "gotcha" on him), the markets started going up again ... with some good gains ...

Of course, the corporate media amnesia kicks in when it comes to remembering the Repugniconvicts screaming about Gore "tanking" the market when he would win a point in the 2000 election ...

[ozymandius]

13. I would say these are purely coincidental.

The fact that you noticed these changes in stock valuation averages is telling of some other data that would influence the general movements of irrational markets. There are some sectors that will lead trends. Those sectors will certainly take their cues from those in higher office who create and implement public policy that will affect the private sector. But as a general trend, there tends to be little correlation, or at least a direction in the correlation between market valuations and political theatre. We definitely can see how small- and mid-cap industries can benefit from Obama's green initiatives and energy sustainability agendas. Then, if you invested in like-minded index funds, there you would see a more direct impact of political wrangling.

[tclambert]

17. January's car sales numbers from Autoblog

From: http://www.autoblog.com/2010/02/02/by-the-numbers-january-2010-total-recall-edition/

Toyota Motor Company falls 16%, FoMoCo up 25%

How do you know if a recall has affected your sales? If you find yourself below the Chrysler Group in sales performance. That's exactly what happened to Toyota Motor Company in January 2010, as the early effects of its sticking pedal recall sank sales 16 percent versus the same month last year. And the recall was only announced on January 21, directly affecting only about a third of the month's selling days. . . .

Ford Motor Company, meanwhile, continues to ride a wave of positive press and industry accolades to higher sales. Its group rose sales some 25 percent last month to beat all auto-making companies. Sales for the Ford brand itself rose 26 percent by volume alone. General Motors also has something to smile about, as Chevrolet roared back with sales up 36 percent and sales overall (including non-core brands that are still clearing out inventory) that jumped 14 percent.
______________

January, 2010 sales vs. January, 2009 sales:

Ford: +24.63%
Nissan NA +16.12%
GM: +13.62%
BMW group: +5.77%
American Honda: -5.00%
Chrysler: -8.07%
Toyota: -8.07%

That's right, GM was up, even though Saab, Hummer, Pontiac, and Saturn still hold down its numbers somewhat. Chevy sales were up 36.42%, Buick sales up 44.37%.

The bad news is these positive numbers are compared to January a year ago--a really, really bad sales month.

[tclambert]

21. Some say the Toyota acceleration problem is NOT due to floor mats.

12 deaths have been linked to unintended acceleration of Toyotas. Some engineers around here are saying the floor mat explanation isn't sufficient. It may be a problem with Toyota's electronics. The further implication is that Toyota does not really have a definitive fix.

Predictions: This will eventually pass. Toyota will claim they have a fix, complete their recall, and go back to business as usual. The buying public, however, will not. Toyota's reputation has taken a major hit. That will give Ford and GM a boost in market share.

Observation: 12 deaths is negligible compared to the deaths from, say, drunk driving. People are so bad at math, we just won't ever get that, though. Lightning kills more Americans than that every year.

[tclambert]

23. And another thing, while I'm ranting on cars . . .

Toyota's problems with unintended acceleration highlights one of the reasons I'm dubious about start-up car companies like Tesla and Fisker. One tiny little problem with a piece of technology that's far from new, and a major player like Toyota takes a tumble. New car companies tend to have one or two good ideas, real improvements over existing cars. But you have to get everything else right, too. That's hard because there are so many sub-systems in an automobile.

On top of that, you have to build a car factory. You can build a toaster on a tabletop. The old car factory here in Wixom has 7 MILLION square feet of space. One of the stories I recall about DeLorean's attempt to build a brand new car company was that he had to negotiate with the IRA over how to divide the territory between loyalists and rebels in his factory in Northern Ireland.

It's ming-boggling, the number of details that go into building a car, let alone building a car company. On SMW, we often talk about how complicated the banking industry has become. Everything they do is actually trivial by comparison.

[newfie11]

32. I wonder how many accidents were caused by this problem

There are 12 fatalities but I wonder how many times this has happened with no deaths. Also I wonder how this compares to the pinto and corvair recall. Showing my age now LOL

[ozymandius]

18. Jeebus! This chart!

Normally I would not hotlink big images like this out of respect for the website owners due to their bandwidth expenses. I hope that this time I maybe forgiven.



And here are the comments from Ritholtz:

As the countdown to Friday’s jobs number begins, it might be instructive to get yet another perspective on the amount of slack in the labor market and its effect on wages.

Here’s a chart built at the St. Louis Fed website that clearly drives home the point — it perfectly captures the inverse relationship between the Unemployment Rate and Average Hourly Earnings...

I’d postulate that only when this gap starts to close meaningfully will we have to consider the possibility that the Fed will tighten and/or that inflation might be somewhere out there on the horizon. Until then, it’s very hard to envision they’ll consider moving off their ZIRP.

Prolonged unemployment is definitely pushing wages way down. This will impact the overall economy in so many ways such as those described in post #9.

[Tansy_Gold]

24. "PROLONGED UNEMPLOYMENT IS DEFINITELY PUSHING WAGES. . . .

WAY DOWN."

This is part of the plan to destroy any remnants of a comfortable working class.

And I think we've probably reached a point in this years-long discussion of "the economy" to begin to examine the difference(s) between what many consider "the middle class" and what maybe should more properly be called "the working class." And I'm going to rely on our European-based SMWers for their input in particular because I think there is a much more robust distinction between those classes there than here.

It seems to me that there will always be some support for a managerial/professional class to remain economically/financially comfortable, to the point that it retains some political clout. But the opportunities for a much larger, and therefore potentially more politically powerful, working class population must be withdrawn if the elites/aristos are to maintain their power.

Which further makes we wonder if those cultures with vestiges of true medieval titled nobility and/or landed aristocracy are actually better able to develop their working class political power because they have no collective illusion/delusion that TPTB have the commoners' best interests at heart. The American electorate seems very susceptible to that bullshit -- witness Reagan and booooosh 2 -- and even now we have those who so blindly and enthusiastically support the policies of a president they like (see how I'm following the DU civility rules??? :evilgrin:) even when those policies are directly opposed to the core of Democratic principles.



Tansy Gold, who is :rofl: and ITYSing like crazy, because the "nightmare" software (which probably wouldn't have been a nightmare at all if teh stoooopids had just done some friggin' planning and training) crashed the whole system after less than two complete days of operation thus putting approximately 100 "independent subcontractors" like herself out of work -- and ineligible for any unemployment compensation should the "outage" last much longer.

[tclambert]

25. It's a supply/demand relationship.

When unemployed people are plentiful, employers don't have to pay as much for workers. When the available labor pool (the unemployed) shrinks, the price for labor goes up.

Right now, employers have the advantage. People all around keep saying, "I'm just glad I have a job." Employers turn that around to "You should be grateful you have a job," while demanding wage and benefit cuts.

[IDFbunny]

90. Those wage and benfit cuts

are needed so they can retain top executive talent.

[tclambert]

26. It's also clear from that graph that unemployment continues to rise for a time following recessions.

Three data points isn't much to work with, though.

[Tansy_Gold]

29. And two data points is even less, if the 2009-2010(?) recession

isn't really over.

And I don't think it is.


TG

[Roland99]

31. Two Republican Presidents....THREE Recessions.

[Hugin]

37. I know I haven't mentioned the SMWEI in awhile, but, I saw this back when I was...

working on it.

Especially striking was the short phase in the late '90s when things were actually improving for the little guy. Boy, TPTB sure stomped out that little green shoot... Is all I have to say.

If you're wondering about the Stock Market Watch Economic Index... (I know... I know... Very depressing.) Well, it pegged down at -70.0-ish and it hasn't moved in about a year except to go ever more incrementally down.

[DemReadingDU]

79. How does that SMWEI work again?

What does -70.0 relate to? Does that number correspond to a weak recession? a bad recession? a beginning depression?

[Robbien]

30. The world's banksters demanding Icelandic citizens pay them for their losses at Icelandic banks

In Iceland, Creditors Line Up at Kaupthing

Amid the hullabaloo about Davos, it was easy not to notice a second gathering on Friday, taking place almost 1,700 miles away in Reykjavik, Iceland, where creditors from 119 countries gathered to discuss their claims on one of the country’s bankrupt lenders, Kaupthing.

Of the more than 28,000 individual claims totaling 43 billion euros, or about $60 billion, that Kaupthing has drawn up on a creditors’ list, more than half of that amount came from German institutions, with 5.3 billion euros claimed by Deutsche Bank alone, according to reports from Icelandic news media, which had access to the list.

. . .

With Iceland’s banks nationalized, other nations are attempting to make the country as a whole liable for losses incurred through its lenders while they were still in the private sector. Debt claims on Kaupthing alone amount to five times Iceland’s gross domestic product.


http://dealbook.blogs.nytimes.com/2010/02/01/next-to-icesave-creditors-line-up-at-kaupthing/

First the Dutch and the Brits go after Icelanders for reimbursement of bankster greed and now the rest of the world is jumping on the people of Iceland's backs. Some world.

[Po_d Mainiac]

33. Boston.com remembers

http://www.boston.com/news/nation/washington/articles/2010/02/04/summerss_role_questioned_as_us_economic_policy_shifts/?s_campaign=8315

As a White House official, Summers gets to avoid the public grillings in Congress that Treasury Secretary Timothy Geithner has been subjected to, over such explosive controversies as Wall Street bonuses and the banking and investment firm bailouts that began in 2008.

[DemReadingDU]

35. A Comparison of Unemployment In the European Union and the United States

The EU has its Spain and Ireland. The United States has Michigan, Ohio, and Nevada.




http://jessescrossroadscafe.blogspot.com/2010/02/comparison-of-unemployment-in-european.html

[TheWatcher]

54. Nice to know that people in this thread visit Jesse's Cafe.

:thumbsup:

I wish I could be as heartening toward that chart.

It, needless to say, is very telling.

[Robbien]

38. SeekingAlpha has a post up saying Cuomo is charging BoA with fraud

Their post:

New York AG Cuomo files securities fraud charges against BofA (BAC), and former CEO Kenneth Lewis and former CFO Joe Price. (DJ)

----------


Hope this is true since that SEC case against them went nowhere. No article yet on Google.

[DemReadingDU]

39. NYT: Cuomo Sues Bank of America as It Settles With S.E.C.

2/4/10 Cuomo Sues Bank of America as It Settles With S.E.C.

Bank of America settled a regulatory complaint with the Securities and Exchange Commission on Thursday even as the New York’s Attorney General accused the bank, its former chief executive and chief financial officer of securities fraud.

In a lawsuit filed on Thursday, the attorney general, Andrew M. Cuomo, claimed the bank and the two officers — Kenneth D. Lewis, the chief executive, and Joe L. Price, the chief financial officer — misled shareholders and the government about the merger with Merrill Lynch.

Both executives have stepped from the posts, though Mr. Price remains at the bank.

The attorney general had been in settlement talks with the bank since November, but the talks apparently fell through.

As Mr. Cuomo was announcing his lawsuit, the S.E.C. released details of a settlement with Bank of America on two separate cases. The bank agreed to pay a $150 million fine and strengthen its corporate governance rules.

A Bank of America spokesman, Bob Stickler, said the bank was disappointed by Mr. Cuomo’s charges.

“The evidence demonstrates that Bank of America and its executives, including Ken Lewis and Joe Price, at all times acted in good faith and consistent with their legal and fiduciary obligations,” Mr. Stickler said in an e-mail message. “The S.E.C. had access to the same evidence as the N.Y.A.G. and concluded that there was no basis to enter either a charge of fraud or to charge individuals. The company and these executives will vigorously defend ourselves.”

The attorney general’s accusations, detailed in a 90-page complaint, focus on two decisions that bank executives made in December 2008, as Merrill Lynch suffered growing losses. The complaint was filed under the Martin Act, a New York state law that gives the attorney general broad latitude to pursue financial wrongdoing.

“Throughout this episode, the conduct of Bank of America, through its top management, was motivated by self-interest, greed, hubris, and a palpable sense that the normal rules of fair play did not apply to them,” Mr. Cuomo said. “Bank of America’s management thought of itself as too big to play by the rules and, just as disturbingly, too big to tell the truth.”

more...
http://www.nytimes.com/2010/02/05/business/05cuomo.html?src=twt&twt=nytimes

[Robbien]

55. Times of London headline: Bank of America accused of 'enormous fraud'

Ha! No mincing of words there.

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7015681.ece

New York Attorney General sued the bank and two top executives for an 'enormous fraud' on taxpayers and shareholders

. . .

Among other extraordinary allegations, the suit intimates that Mr Price, who was BoA’s chief financial officer in late 2008, arranged the sacking of Timothy Mayopolous, the bank’s general counsel, to prevent him from revealing that Mr Price was hiding Merrill’s huge loss.

Mr Price is also alleged to have lied to BoA’s board about the loss and, with Mr Lewis, installed Brian Moynihan, a stooge general counsel, to push the $50 billion all-paper deal through.

Mr Moynihan, who became BoA's chief executive last month, had not practised law in 15 years and did not have current bar licence when he took the general counsel job, which he held for just six weeks. Mr Moynihan is not accused of any wrong doing.

Mary Jo White, Mr Lewis's attorney, said: “There is not a shred of objective evidence to support the allegations,” Ms White said. Mr Lewis retired last month.

[dixiegrrrrl]

73. Why didn't they hire poor Alberto Gonzalez for the stooge lawyer job?

Poor guy sure needs work.

I can hardly wait for the books to come out.
The Enron book was a good story, and it sure looks like BOA and AIG and etc. will be good ones, too.:evilgrin:

[Demeter]

42. BofA charged with ‘duping’ shareholders --FT

Cuomo's Complaint:

http://www.ft.com/cms/0/9a68624e-11af-11df-bceb-00144feab49a.pdf

BofA charged with ‘duping’ shareholders

http://www.ft.com/cms/s/0/2d0110e8-11af-11df-bceb-00144feab49a.html

Bank of America and its former top executives were on Thursday facing civil charges over allegedly misleading their shareholders about losses at Merrill Lynch and misleading the government in order to get $20bn in Tarp funds.

Ken Lewis, former Bank of America chief executive, and Joe Price, the bank’s former chief financial officer, are named in the charges by Andrew Cuomo, the attorney-general of New York.

After more than one year of investigation, Mr Cuomo’s office determined that Mr Price misled BofA’s general counsel as to the magnitude of Merrill’s losses in the fourth quarter of 2008, in order to get the general counsel to agree with the bank’s stance that Merrill’s losses did not need to be disclosed to shareholders prior to a December 5 vote on the transaction.

Mr Cuomo alleges that BofA then overstated its ability to break off the deal as leverage to get $20bn in taxpayer money.

About a week after BofA shareholders approved the Merrill acquisition, Mr Lewis approached federal regulators, saying that Merrill’s losses had grown so quickly that BofA was planning to invoke the “material adverse change” clause to extricate itself from the transaction.

For the past year, Mr Cuomo’s office, a Congressional committee and the Securities and Exchange Commission have all investigated the events leading up to BofA’s acquisition of Merrill Lynch. The SEC announced a $150m settlement with BofA on Thursday regarding shareholder disclosure, but Mr Cuomo’s charges are an attempt to affix blame to the bank’s top management.

Last September, Mr Lewis announced his intention to step down from his job as chief executive at the end of 2009. He was replaced by Brian Moynihan, who had served in various capacities at BofA, including general counsel. Mr Moynihan, who took over in January, named Mr Price, the former chief financial officer, to head up BofA’s consumer banking operations.

BofA issued the following statement: “We find it regrettable and are disappointed that the NYAG has chosen to file these charges, which we believe are totally without merit. The evidence demonstrates that Bank of America and its executives, including Ken Lewis and Joe Price, at all times acted in good faith and consistent with their legal and fiduciary obligations.”

[spotbird]

44. If the charges are true,

isn't it a crime?

[Robbien]

46. Yeah, but the SEC doesn't like charging execs or companies with a crime

The Bank of America paid the SEC one whole dollar for what they call disgorgement, dropping of all charges. The $150,000 fine BoA is paying goes to BoA's shareholders not the SEC or its defrauded clients.

I am not too sure how far Cuomo is going to get with the BoA fraud charges because there are quite a few corporate friendly judges over in the big apple who like throwing out cases which charge execs with crimes. Just last week such a judge threw out the case of fraud which was charged against Madoff's sons and execs. Judge didn't believe people should be charged for herding clients to Madoff investments.

[spotbird]

47. It sucks

but there isn't any hope.

[Robbien]

49. SEC just settled another fraud case today with State Street

No criminal charges for company's execs.

What happened was State Street told some clients to move their money cause the investments were stinkers and were going to tank but didn't tell other clients the same thing. Those other non-favored clients were pension plans and endowments and cities and states.

State Street is to pay a fine for defrauding those customers. Those customers lost hundreds of millions (perhaps even billions) and State Street is to partially re-pay them only three hundred mil.

Yeah, the system sucks.

To make up for the difference cities/counties are raising taxes and deleting much needed services.

[Robbien]

50. Another case settled today, in favor of the company and its execs

Eli Lilly made false promises about its drug and that the drug caused weight gain-related side effects like diabetes and hypertension.

Lilly has been making some settlements to some states but in the case of the state of Mississippi:
http://www.legalnewsline.com/news/225375-lilly-decides-to-settle-with-ag-hood

U.S. District Judge Jack Weinstein had rejected the firm's statistical analysis . . . and also wrote that a ruling in favor of Mississippi could have been dangerous.

"If allowed to proceed in their entirety, the State's claims could result in serious harm or bankruptcy for this defendant and the pharmaceutical industry generally," he wrote.

"For the legal system to be used for this slash-and-burn style of litigation would arguably constitute an abuse of the legal process. Constitutional, statutory and common law rights of those injured to seek relief from the courts must be recognized. But courts cannot be used as an engine of an industry's destruction."


-----------

Basically the judge is saying people can sue for damages if the damages are small. But if big fraud occurs, don't come to him seeking justice cause it will hurt profits.

[Demeter]

61. This Has Supreme Court Written All Over It

like this: $$$$$$$$$$$$$$$$$$$$$$$$$$$$...

we need a $ smilie, too.

[FarCenter]

58. Yes, but during the marraige with Merrill Lynch Paulson, Geithner and Bernanke had the shotgun

[Demeter]

62. Racketeering!

Very hard to convict....

[FarCenter]

66. Cuomo is actually gunning for Patterson

The BofA guys are just collateral damage in the gubernatorial race.

[Robbien]

43. Greek Strike Deepens Debt Crisis Fears (torches and pitchforks are being dusted off)

ATHENS, Greece (AP) -- Stock markets sank Thursday in Greece, Portugal and Spain amid worries over the European Union's debt woes, with Greek customs and tax officials walking off the job in opposition to cutbacks aimed at digging the government out of a budget crisis that has shaken the entire EU.

The 48-hour Greek customs strike is expected to choke imports until next week, with fuel supplies the most likely to suffer. Lines of trucks were already forming at the country's borders, with customs workers allowing through only those carrying perishable goods or pharmaceuticals.

The government of Socialist Prime Minister George Papandreou is under intense pressure from markets and other EU governments to bring its budget deficit down from 12.7 percent of economic output last year to 2 percent in 2013.

A Greek default would be a serious blow to the shared euro currency, but Greece and the EU have insisted that will not happen. Doubts about Greece's finances have also affected market sentiment toward the debt of Portugal and Spain, two other eurozone countries struggling with deficits.

Markets appear worried that political resistance to cutbacks will keep Greece and Portugal from sticking to their plans.

more . . .

http://www.nytimes.com/aponline/2010/02/04/business/AP-EU-Greece-Financial-Crisis.html

The Greeks are also planning on staging a nationwide strike later on this month. These guys really don't like being neo-liberalized by the IMF.

[Roland99]

48. 2:22pm - Markets and commodities get stung

Dow 10,050 -220 -2.14%
Nasdaq 2,139 -52 -2.38%
S&P 500 1,071 -26 -2.39%
GlobalDow 1,868 -49 -2.55%
Gold 1,063 -49 -4.41%
Oil 72.69 -4.29 -5.57%

[Tansy_Gold]

51. Thanks, Roland99

I like seeing that little ticker every once in a while. I've missed it, without even realizing I missed it.


Tansy Gold, who unapologetically roots for it to stay nice and red day after day because she firmly believes that's the ONLY way the rabble will be roused.

[Roland99]

52. Yeah...just realized I haven't done that in months

Although, the last job I had I couldn't surf to this site at all so I couldn't even lurk.

At least now I can get some stuff posted on lunch or breaks here and there. :)

[Roland99]

53. At the close

Dow 10,002 -268 -2.61%
Nasdaq 2,125 -65 -2.99%
S&P 500 1,063 -34 -3.11%
GlobalDow 1,861 -55 -2.87%
Gold 1,064 -48 -4.32%
Oil 73.10 -3.88 -5.04%

10-yr T-bond...3.59 -0.12
Euro /$1US...1.37 -0.0152
$1US / Yen...88.96 -2.0000
Pound / $1US...1.58 -0.0147

[Dr.Phool]

57. Holy Mackerel Andy!

The biggest drop we've seen in some time.

I leave for the day, and you guys destroy the economy while I'm gone.

Dow almost below 10k again.
Gold off almost $50.

I'll keep a closer eye on you guys tomorrow.

[Roland99]

59. Should be cheaper to fill up our cars this weekend, though.

Too bad I did that 2 days ago.

[CatholicEdHead]

67. Due to SuperAmerica in the region it went up today for the weekend

SA always takes it higher Thursday-Sunday. I filled up for $2.50 yesterday (Wednesday), and it humped to $2.53 this morning.

[Demeter]

63. Speaking of Tomorrow, We Need a Theme

I don't want to be a nag, but my brain is already overloaded, if not fried. Don't make me get out the Disney file! (Tansy will stomp all over me with her rubber ITYS stamp).

I had a thought while at the Kid's doctor appointment, but it has escaped. Kid is doing very well, for which much thanks. Younger Kid called me this morning to say that she had finished her route in the 18F weather, and had not quite skidded into the Huron River, even though she hit a patch of ice on the cliff edge road....

It's a wonder I have any hair left at all.

[CatholicEdHead]

64. Roller Coasters? It looks like back to daily whiplash territory

Or National Lampoon's Vacation weekend, on our way to Wally World.

/cue Holiday Road

[ozymandius]

68. Raising Arizona has been quoted at my school quite a bit this week.

I could see a either a banker or a Senator saying, "I'll be taking these Huggies. And any cash you got."

[Demeter]

70. I haven't seen it, to tell the truth

If you are willing to fill in the "culture" bits, it could be done.

[Demeter]

69. It has to have music or quotes

I just can't do pictures of roller coasters! Besides, I'm scared to death of them.

[CatholicEdHead]

74. National Lampoons Vacation then

http://www.youtube.com/watch?v=y1QA1Iq3b1M

If not this weekend, whenever you want to fit it in.

[AnneD]

83. Well...

there's the St. Valentine's Day Massacre Gangsters in love, A Super Bowl theme, I love Lucy, Black History and Entrepreneurs,for starters.

[MilesColtrane]

86. How about "Red Rain" from Peter Gabriel, seeing as how the red ink is flowing in the equity market?

A feel good meme?

No, but appropriate.

http://www.youtube.com/watch?v=n7m7Q9VwYqw

[ozymandius]

65. Jeebus! (again)

I am sure people will be running around saying things like "there's value in the market" tomorrow. But dang! That's a sharp blow to the chops when nearly everything took a hit. Even bonds, those safe havens during times of uncertainty, did not muster enough enthusiasm to even recover half of yesterday's sharp yield jump.

Thanks, Roland, for posting the finals.

[Demeter]

71. I Think The Masquerade Is Over

and it's 12 days before Mardi Gras.

We could do Phantom of the Opera! That would be a good one!

[MilesColtrane]

87. "The Masquerade is Over" from the incomparable Nancy Wilson?

http://www.youtube.com/watch?v=PYYPZZNIOaY

[Demeter]

88. That Was Lovely!

A good theme song. thanks!

[fan of the arts]

72. Let's pretend DOW 10,000 is a political win or loss and ignore criminals

and pretend we can get jobs and health care in a fascist country. We can cleverly quote 50 different slogans that prove we're always right too. The American public is being robbed and just taking it for fear of retribution from the fascist state and it's corporate toadies.

The idea that capitalism failed isn't even in the current dialog, this country is completely delusional in its belief that capitalism was saved and everything is rebounding as if some cycle is just repeating itself. The time is coming when the delusions will face reality and at that point, the U.S. is going to look like Argentina.

[Tansy_Gold]

82. Which is why I take hope only when the market sinks

I truly believe it's going to take an unbackstoppable collapse to wake not only this country but the world out of its stupor.

Then again, maybe nothing will.


Welcome to DU, if no one has welcomed you before, and even if someone has! :hi:




Tansy Gold, whose nightmare system is up and running again after 48 hours of downness. . ..

[notesdev]

75. Where are my critics now?

Had plenty of people harping on me for calling this to happen back in November. So I was a couple of months off sure, but this was INEVITABLE (and it's not even close to done yet).

Any critics out there going to man up and admit that just maybe I knew what I was talking about?

[Demeter]

76. You Are Preaching to the Choir Here

You have to leave the SMW womb and face your opponents if you want confrontation.

[notesdev]

77. Oh yeah

I seem to find plenty of that! Seriously though, I had someone crawl through posts I made in like July or August, predicting it would happen around mid-November, and bring them up on totally unrelated threads as ad hominem. Who knew the games that Ben would play to stall it? History will be wondering WTF we were thinking re-confirming Bernanke even after the dam had begun to crack.

[Dr.Phool]

78. There's a lot of Kool-aid poisoning in those other forums.

Around here, people just do research, and fuck the propaganda.

[DemReadingDU]

80. Extend and pretend

Seriously, how much magic is left in Ben's bag of tricks to keep fake green shoots growing? Or maybe there is some Black Swan event that people lose confidence and blame a major downturn instead of the real problems?

[Demeter]

81. Unfortunately, It Was Not We Who Decided

[skoalyman]

84. tomorrow should be interesting

:nuke:

[Demeter]

85. Schadenfreude for Breakfast

An All-You-Can-Eat Buffet of it.