STOCK MARKET WATCH, Friday February 26

[ozymandius]

Source: DU

STOCK MARKET WATCH, Friday February 26, 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 25, 2010

Dow... 10,321.03 -53.13 (-0.51%)
Nasdaq... 2,234.22 -1.68 (-0.08%)
S&P 500... 1,102.94 -2.30 (-0.21%)
Gold future... 1,108 +11.20 (+1.02%)
10-Yr Bond... 3.63 -0.06 (-1.65%)
30-Year Bond 4.57 -0.06 (-1.27%)

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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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Read more: DU

[ozymandius]

1. Today's Reports

08:30 GDP - Second Estimate Q4
Briefing.com 6.0%
Consensus 5.7%
Prior 5.7%

08:30 GDP Deflator - Second Estimate Q4
Briefing.com 0.6%
Consensus 0.6%
Prior 0.6%

09:45 Chicago PMI Feb
Briefing.com 57.5
Consensus 59.7
Prior 61.5

09:55 U Michigan Consumer Sentiment - Final Feb
Briefing.com 72.7
Consensus 73.9
Prior 73.7

10:00 Existing Home Sales Jan
Briefing.com 5.10M
Consensus 5.50M
Prior 5.45M

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

[UpInArms]

43. GDP revised up to 5.9% on slower inventory cuts

http://www.marketwatch.com/story/gdp-revised-up-to-59-on-slower-inventory-cuts-2010-02-26?siteid=bnbh

WASHINGTON (MarketWatch) - The U.S. economy grew slightly faster than previously reported in the fourth quarter, but details of the revision to gross domestic product show final sales in the United States were actually weaker than reported a month ago, the Commerce Department estimated Friday. U.S. real gross domestic product increased at a 5.9% seasonally adjusted annualized pace, revised up from 5.7% estimated last month. The revision was exactly in line with expectations. Nearly two thirds of the growth was accounted for by changes in inventories, not by final sales. Compared with the first GDP estimate, inventories were bigger, business investments were higher, and exports were higher.

[ozymandius]

2. Oil hovers above $78 amid mixed crude demand signs

SINGAPORE – Oil prices hovered above $78 a barrel Friday in Asia amid mixed signals about global crude demand. ...

Oil prices have bobbed between $70 and $80 for most of the last six months as investors mull growing crude demand in developing countries such as China offset by flagging consumption in developed countries. ...

Crude prices were bolstered by a weaker U.S. dollar, as dollar-based commodities such as oil become cheaper for investors with other currencies when the dollar falls. The euro rose to $1.3585 on Friday from $1.3547 the previous day.

In other Nymex trading in March contracts, heating oil fell 0.37 cent to $1.9825 a gallon, while gasoline rose 0.87 cent to $2.0457 a gallon. Natural gas prices gained 4.8 cents to $4.815 per 1,000 cubic feet.

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

[Demeter]

13. If Science Could Discover What Makes Oil "Hover"

we could have anti-gravity machines, and flying cars.

[nc4bo]

73. Please, can we add; slide, slip, sink and edged? Pretty please? nt

[ozymandius]

3. Bottom line on health care summit: Dems push ahead

WASHINGTON – President Barack Obama strongly signaled that Democrats will move forward on a health care overhaul with or without Republicans, preparing his party for a fight whose political outcome will rest with voters in November.

Delivering his closing argument at a 7-1/2-hour televised policy marathon Thursday, Obama told Republicans he welcomes their ideas — even ones Democrats don't like — but they must fit into his framework for a broad health care remake that would cover tens of millions of uninsured Americans. ...

Obama's plan would require most Americans to get health insurance, while providing subsidies for many in the form of a new tax credit. It would set up a competitive insurance market for small businesses and people buying coverage on their own. Other changes include addressing a coverage gap in the Medicare prescription benefit and setting up a new long-term-care insurance program. The plan would be funded through Medicare cuts and tax increases.

At the summit, there were some areas of agreement, including barring insurers from dropping policyholders who become sick, ending annual and lifetime monetary limits on health insurance benefits and letting young adults stay on their parents' health policies into their mid-20s or so.

http://news.yahoo.com/s/ap/20100226/ap_on_bi_ge/us_health_care_overhaul

[Hugin]

10. Ha! Good headline given today's 'toon...

It's all true... Except in reality, the Party of Nowhere-ers aren't being kind enough to curl up into a roll-able ball.

:7

[Demeter]

18. Unfortunately, the Reference to Sisyphus Is Over His Head , Too

You can't out-stubborn a Republican. Different tactics are needed.

[Po_d Mainiac]

53. Take a second look

Nowhere-ers aren't being kind enough to curl up into a roll-able ball.

At McConnell's chins...It's doable

[Demeter]

16. Why the F Doesn't He Just Come Out and Say "Medicare for All"?

Why does he think that some wonky, rube-goldbergian, point-of-a-gun coercive insurance company giveaway is good for the COUNTRY, and the PEOPLE?

Why does he give a moment's thought to the "insurance pool"? The "insurance pool" doesn't vote as a group, and when it did, it voted for SINGLE PAYER UNIVERSAL HEALTH CARE.

Insurance is a failed model. It's like trying to bring the horse and buggy back to modern american cities--horse poop all over.

I honestly tried to listen to this on NPR yesterday, and I wanted to throw up.

[Dr.Phool]

56. Because you can't do ANYTHING for the masses, unless you pay off the wealthy.

Look at the original jobs bill. The stimulus. any unemployment stimulus package.

It's always larded down with gifts and tax breaks for the wealthy.

[ozymandius]

4. Apple’s Jobs Prefers Having Cash to Paying Dividends

Feb. 25 (Bloomberg) -- Apple Inc. Chief Executive Officer Steve Jobs said he prefers holding on to the company’s cash hoard for potential acquisitions and “bold” investments, rather than paying dividends or buying back stock.

“We know if we need to acquire something -- a piece of the puzzle to make something big and bold -- we can write a check for it and not borrow a lot of money and put our whole company at risk,” Jobs said today at Apple’s shareholder meeting. “The cash in the bank gives us tremendous security and flexibility.”

Apple had almost $25 billion in cash and short-term investments as of December, near its record of $25.6 billion the previous year. Over the past few years, the company has made small acquisitions to expand in such businesses as mobile-phone ads and wireless music services. It also maintained hiring through the recession and invested in new products, including the iPad media tablet due in March. ...

http://www.businessweek.com/news/2010-02-25/apple-chief-jobs-prefers-holding-cash-to-dividends-update1-.html

[Demeter]

19. Then Jobs Better Have a Controlling Interest

so that no pushy hedge fund or investment firm pushes him out.

Or maybe a shareholder revolt...

[Dr.Phool]

31. You can't steal dividends.

You can sneak out the door with cash.

[Coes]

22. "Apple hasn’t paid a dividend since 1995"

“Ninety-eight percent of all tech companies should pay a dividend,” Wilson said. -> And why would that be?

[Demeter]

25. Well, Stockholders Rather Expect It

If the company is making real profits, they want a share. Capital gains means one has to sell...dividends means an income stream.

[hamerfan]

66. Apple's stock

has certainly increased in the past few months.
AAPL
Maybe dividends aren't always necessary....

[ozymandius]

5. Japanese retail sales and factory output increase

Japan's retail sales rose in January for the first time in 17 months, figures have shown.

Separately, industrial output rose for the 11th consecutive month due to rising demand from China - the country's biggest export market.

Retail sales rose 2.6% from a year earlier and factory output rose at an annual rate of 2.5% in January, the Economics Ministry said.
However, consumer prices fell for the 11th straight month. ...

Deflation, a drop in the cost of goods, has been a constant problem in Japan - the world's second-largest economy - for more than 20 years.

http://news.bbc.co.uk/2/hi/business/8538364.stm

[ozymandius]

6. AIG Ditches Payback Plan as Outlook Improves

American International Group Inc. and its federal overseers have decided to scrap a plan to use cash flows from life-insurance policies to repay $8.5 billion in debt to the Federal Reserve Bank of New York, according to people familiar with the matter.

The decision, which comes as AIG prepares to report fourth-quarter results Friday, follows a market recovery over the past year that could improve the government-controlled insurer's chances of repaying its debts to U.S. taxpayers.

AIG now believes it can repay the $8.5 billion through other means, such as with cash generated by its insurance businesses and asset sales, according to people familiar with the matter.

The move reflects expectations that AIG's asset sales will be at prices above what the company and government officials anticipated in March 2009, when tumultuous financial markets led the Treasury Department and New York Fed to take additional steps to stabilize the giant insurer following its initial bailout in September 2008. ...

While the company is likely to report a fourth-quarter loss on Friday, many of its core insurance businesses have stabilized over the past year.

AIG is now close to selling one of its large foreign life-insurance businesses to MetLife Inc. for $15 billion, and is preparing to launch an initial public offering for another foreign unit that could fetch $10 to $20 billion in the coming months, analysts have estimated.

http://online.wsj.com/article/SB10001424052748703795004575088203763487726.html?mod=WSJ_latestheadlines

[UpInArms]

36. AIG reports $8.9 bln quarterly net loss

http://www.marketwatch.com/story/aig-reports-89-bln-quarterly-net-loss-2010-02-26

NEW YORK (MarketWatch) -- American International Group Inc. (AIG 24.38, -3.13, -11.38%) reported a fourth-quarter net loss of $8.9 billion, or $65.51 a
share, on Friday. That compares to a net loss of $61.7 billion, or $458.99 a share, in the fourth quarter of 2008. The fourth-quarter 2009 adjusted net loss was $7.2 billion, or $53.23 a share, compared to an adjusted net loss of $38.5 billion, or $287.69 a share, in the fourth quarter of 2008. AIG said it strengthened loss reserves for its General Insurance division by $2.3 billion, or $1.5 billion after tax. The insurer also said it continues to address funding needs and explore strategic restructuring opportunities for International Lease Finance Corporation (ILFC), and American General Finance, Inc. (AGF). AIG shares dropped 12% to $24.26 in pre-market action.

[ozymandius]

7. European Economy Risks Decoupling From Global Growth Recovery

Feb. 26 (Bloomberg) -- Europe’s economy may be coming unstuck from the global recovery as governments to the south of the region struggle to reverse budget deficits and consumers in the north pull back spending.

After the 16-nation euro economy almost stagnated in the fourth quarter, data this week showed the weakness reaching into 2010. Confidence among households and companies worsened unexpectedly, French consumer spending fell and bank loans to the private sector slid for a fifth month. At the same time, Standard & Poor’s said it may soon downgrade Greece again as the country grapples with the region’s largest budget shortfall. ...

Still, ECB policy makers meeting in Frankfurt on March 4 will take decisions on a further “gradual” phasing out of emergency measures introduced to fight the financial crisis, council member George Provopoulos said in an interview on Feb. 19. After already announcing the end of its 12- and 6-month loans, President Jean-Claude Trichet has indicated the bank may return to an auction procedure in some of its refinancing operations as a next step. ....

Consumers will also keep retrenching as unemployment rises from December’s 11-year high after climbing slowly last year when government aid limited firings, said Gilles Moec, an economist at Deutsche Bank AG in London. Spending may also suffer as governments cut programs used to stoke consumer demand in 2009.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aD6mJGvUqkRE

[Ghost Dog]

11. Now I'm surprised/skeptical: "Britain exits recession faster than expected"

The UK economy emerged from its 18-month recession at a faster pace than expected, figures released by the Office for National Statistics (ONS) show.

union-flag-big-jpg

Britain's gross domestic product (GDP) grew 0.3% in the final three months of 2009, up from its first estimate of 0.1% and stronger than the 0.2% revision made by City economists.

ADVERTISEMENT

It follows better-than-expected showings from most parts of the economy.

The services sector, the biggest part of the economy, grew 0.5% instead of the 0.1% initially estimated; manufacturing was also revised upward, with industrial production growing 0.4% instead of 0.1%. Elsewhere, Government spending increased 1.2%.

/. http://www.investmentweek.co.uk/investment-week/news/1593795/britain-exits-recession-faster-expected


UK's escape from recession stronger than first thought

Official GDP figures for fourth quarter of 2009 revised up to 0.3% from 0.1%

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Comments (71)

* Julia Kollewe
* guardian.co.uk, Friday 26 February 2010 10.43 GMT
* Article history

As the recession bites, shoppers pass a boarded-up building in Rotherham, South Yorkshire

The UK economy exited recession with 0.3% GDP growth rather than 0.1%, revised official data showed. Photograph: Christopher Thomond

Britain's escape from recession was stronger than previously thought in the final three months of last year, as the services sector bounced back.

The economy grew by 0.3% in the fourth quarter, rather than 0.1% as previously estimated, the Office for National Statistics said this morning. This marked the first time the economy had grown since the first quarter of 2008, as the UK exited its deepest and longest postwar recession.

But City economists, who had pencilled in 0.2% growth, said the figures did not change the overall economic picture, which remains weak. Some warned that the economy could slip back into recession in the first three months of this year.

"Certainly a pleasant surprise for ­everybody," said Marc Ostwald at Monument Securities. "Does it really fundamentally change anything in terms of the outlook for the economy? Not really. At the end of the day it's not an indication that it is going to be anything durable. The pick up in manufacturing probably owes as much to restocking as anything else, and that may also be the case for services."

The ONS revised growth in the dominant service sector higher to 0.5% from 0.1%, marking the fastest growth since the start of 2008 and following a 0.3% drop in the third quarter. The rebound was fuelled by strong growth in computer, legal and accountancy services, while banking and other financial services stayed weak and government services were flat.

Household spending also recovered at the fastest pace since early 2008, with a 0.4% increase.

Manufacturing expanded by 0.8% in the fourth quarter. Overall, the production industries, including mining and utilities, grew by 0.4% following a 1% fall in the previous quarter.

The pound, which has been battered by the markets this week, rose briefly on the data.

Adam Chester at Lloyds TSB Corporate Markets said: "A sigh of relief that actually we have indeed pulled out of recession in the fourth quarter. But I don't think we are out of the woods. The first quarter is now going to be the focus and given the weak January we have had and the bad weather, there is still a distinct possibility that we could dip back into the red in the first three months."

A collapse in business investment in the fourth quarter sparked fresh talk of a possible double-dip recession and a sterling crisis in the run-up to the election yesterday. Jim Rogers, one of the world's leading financiers, warned the pound could plummet within weeks and described it as a potential "basket case".

The Treasury was guarded in its assessment of today's GDP figures. "While it is welcome to see an upward revision, recent data in the European Union and elsewhere has indicated that there are risks and uncertainties to this recovery, and there is no room for complacency," said a Treasury spokesman. "Withdrawing support that has helped us get to this point would put the recovery at risk."

/... http://www.guardian.co.uk/business/2010/feb/26/uk-economic-growth-revised-up

[Demeter]

20. Just yesterday I read a complaint that Britain Wasn't Getting Any "Recovery"

I'll see if I can find it....

[Ghost Dog]

39. It depends on what you include in the dataset of your "statistics".

I posted here something about the decline in UK business investment yesterday. Not included in these GDP statistics, though.

Reminds me of this, also from yesterday:

Thursday: The Bernanke Bounce, Part 2 25 comments

Yay, more free money!

Oh not for you (unless you are a banker) but for all of Ben’s best buddies, as the Fed Chairman promised yesterday to maintain "exceptionally low levels of the federal funds rate for an extended period." He can do this because, according to Bernanke:

Increases in energy prices resulted in a pickup in consumer price inflation in the second half of last year, but oil prices have flattened out over recent months, and most indicators suggest that inflation likely will be subdued for some time. Slack in labor and product markets has reduced wage and price pressures in most markets, and sharp increases in productivity have further reduced producers’ unit labor costs. The cost of shelter, which receives a heavy weight in consumer price indexes, is rising very slowly, reflecting high vacancy rates. In addition, according to most measures, longer-term inflation expectations have remained relatively stable.. the range that most FOMC participants judge to be consistent with the Federal Reserve’s dual mandate of price stability and maximum employment.

See! I bet you didn’t realize how well things were going, did you? Oil going from $70 to $80 in 15 days isn’t inflation - it’s SUBDUED! Up from $37 last February and March - SUBDUED - As in, DUED, where’s my money???

I mean, come on people - he says it right here in one of the early paragraphs (before people start to nod off) - the cost of shelter (i.e. your home’s declining value) is heavily weighted in the CPI, and since your home is worth less (worthless?) and will remain so for some time - that offsets all the other nasty inflation that is eating into your paycheck.

Aside from the fact that this assumes your home is something you will be buying at a discount TOMORROW as opposed to something you overpaid for yesterday, the whole measurement that Bernanke uses to define success is ridiculous. Housing makes up 42.7% of the CPI, Transportation makes up 17%, Food makes up 15%, Medical Care is 6% and Clothing is 3.7%. That’s 85.4% so we’ll call "other" 14.6%.

Now, let’s say you, like most Americans, already own your home. That means what you pay on a monthly basis doesn’t change. Let’s say though, that the cost of Transportation goes up 20% (3.4 out of 100) and Food goes up 20% (3.0) and Medical Care goes up 30% (1.8) and Clothing goes up 10% (0.4) - that would be an increase in the CPI of 8.6 BUT (and it’s a big but) if you are lucky enough to lose 20% of the value of your home (and we all did), that knocks 8.5 back off the CPI and PRESTO - we have "just" a 0.1% increase in CPI - PRICE STABILITY! See, the $70,000 that dropped off the value of your home offset the $5,000 annual increase in the cost of gas, food, clothing and medicine (because $70,000 mortgages out to about $5,000 a year).

It’s one thing to sit there in front of Congress and play number games that paint over what a terrible situation the American people are in, but it’s quite another thing TO BASE OUR ECONOMIC POLICIES ON BS STATISTICS!

By the way - Do you know what percentage of the CPI is allocated to taxes? ZERO! Isn’t that AMAZING? They can raise your property taxes, they can raise your school taxes, they can raise sales tax, they can raise income tax... And it doesn’t increase your CPI one bit! I’m in New Jersey and my property taxes jumped 30% this year - if your state is in trouble (and whose isn’t), you can expect the same. The funny thing about increasing property taxes is it also increases the effective cost of your home (as does increasing utility costs) which then lowers the amount a prospective buyer can afford on a monthly basis, which then lowers the effective price you will ultimately be able to sell your home for. So a $300 monthly increase in your property taxes drops the price a buyer can afford to buy your home for by $50,000 (check it out - use the calculator!).

/... http://seekingalpha.com/article/190639-thursday-the-bernanke-bounce-part-2?source=hp_wc

[Demeter]

42. Wow! Goood Find!

More reasons to hate Uncle Ben. As if we needed more.


THE REST OF THAT ARTICLE GETS EVEN BETTER!

YOU MUST READ IT, FOLKS!

[Dr.Phool]

51. Amazing, ain't it?

I had no increase in my retirement this year, because we had no inflation.

But, somehow, Progress Energy managed to slap a 30% surcharge on my electric bill, on top of two rate increases. State Farm managed to jack up my homeowners insurance by 40%. Food's up. Gas jumped $.22 yesterday. And just to rub salt in the wound, the price of Stoli went up!

I sure am glad that there's no wage pressure on the CPI. We'd really be screwed then.

[Dr.Phool]

50. I saw that too.

The "services sector" grew? Ok, it's the same here. The stock market and the banks managed to squeeze blood out of a turnip, and the recession is over. Yeah, right.

And Bernie Madoff is the new Treasury Secretary.

[Ghost Dog]

38. Greek PM says economic crisis confirmed worst fears

Prime Minister George Papandreou on Friday vowed to ignore the political costs and take drastic measures to pull Greece out of a debt crisis threatening the stability of the euro zone. Skip related content
Related photos / videos
Greek PM Papandreou delivers a speech during a parliament session in Athens Enlarge photo

Speaking to parliament after a visit by EU economic inspectors, Papandreou said Greece did not want other countries to pay for its debts but expected solidarity from its European peers as it struggled with worse than expected fiscal problems.

"Unfortunately, history has fully confirmed our worst fears," he said. "Our duty today is to forget about political costs and only think about the survival of our country ... Past policies make it necessary to proceed to brutal changes."

He appeared to be preparing the ground for a fresh set of fiscal measures expected ahead of a mid-March EU deadline to show results in cutting a double-digit deficit. Economic Affairs Commissioner Olli Rehn visits Athens next week.

"There is only one dilemma: Will we let the country go bankrupt or will we react? Will we let the speculators strangle us, or will we take our fate in our own hands?" Papandreou said.

"We must do whatever we can now to address the immediate dangers today. Tomorrow it will be too late, and the consequences will be much more dire."

Greece is also anxious to regain investor confidence by slashing its deficit and restoring the credibility of its statistics as it prepares to sell new bonds in the market with about 20 billion euros due to be repaid in April and May.

EU peers and markets were shocked when Papandreou's socialists revealed after last October's election that the previous government had understated its budget deficit by half.

Rating agencies downgraded Greece. Since they started raising concerns in early December, the euro has fallen almost 10 percent against the dollar and Greek stocks are down over 20 percent.

Meanwhile the cost of insuring Greek debt against default fault has more than doubled since early December to nearly 400 basis points.

The yield premium for holding 10-year Greek government debt over German government bonds has also soared, but narrowed around 14 basis points to 341 after Papandreou's speech.

"We became the weak victim, the guinea pig, we stood unprotected before the markets' wild appetite," Papandreou said.

/... http://uk.news.yahoo.com/22/20100226/tpl-uk-eurozone-greece-papandreou-20b2d2f.html

[ozymandius]

8. Bernanke Says Fed Reviewing Goldman Sachs-Greece Contracts

Feb. 26 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said the U.S. central bank is reviewing derivatives contracts arranged between Goldman Sachs Group Inc. and investment banks with Greece.

“We are looking into a number of questions related to Goldman Sachs and other companies and their derivatives arrangements with Greece,” Bernanke said yesterday in testimony before the Senate Banking Committee in Washington. ...

The Fed’s review reflects determination among regulators to step up financial-market monitoring in the wake of the Greek crisis and the role investment banks like Goldman Sachs played in helping the country raise off-balance-sheet funding. Wall Street’s largest banks have been criticized by lawmakers for issues ranging from pay practices to their role in causing the financial crisis.

Federal Reserve officials are using new supervisory powers over firms such as Goldman Sachs and Morgan Stanley to gather information on financial system risks. Goldman Sachs and other investment banks wrote derivative contracts that helped Greece report smaller debt levels.

http://www.bloomberg.com/apps/news?pid=20601068&sid=aCxXZHxGSavU

[ozymandius]

17. Is Goldman Finally About to be Leashed and Collared?

From Yves Smith at Naked Capitalism. Here is the central part of her thesis:

Goldman may have made a fatal mistake. Fatal not to the existence of the firm, but to its standing, reputation, legitimacy, and ultimately, to the thing it covets most, its profits. ...

The problem is that the behaviors that contributed to Goldman’s commercial success have over time become unbalanced, and are putting it at odds with governments. It is one thing to abuse the likes of a Jefferson County, as JP Morgan has. As deplorable as that behavior is, they cannot retaliate. It is quite another to mess with bodies that really are, ultimately, bigger than you are. ...

But the Goldman of the new millennium has kept the same relentless focus on the firm’s financial interest, and has become utterly, hopelessly sociopathic, incapable of understanding right versus wrong. The firm’s defense strategies vary among priggish and legalists reports (a Lucas van Pragg speciality), insincere, non-specific apologies (Blankfein), or stony silence. But the truth of how the members of the firm see things comes out again and again, through the many ways the Goldmanites keep maintaining that they really deserve what they make (starting with the heinous Blankfein “God’s work” comment), revealing again and again their inability to see how sharp practices and numerous forms of government support are an integral part of their recent “success”. ...

Although the Fed is far from an aggressive investigator, the fact that is has taken interest in Goldman’s role in Greece is significant. And the FCIC is also probing Goldman’s too clever by half strategy of using collateralized debt obligations to tee up short bets, since the buyers of the CDO would assume that they were purchasing a legitimate investment, not something that Goldman would have an incentive to design to fail.

Yes, indeed, it is unwise to mess around with entities that are, ultimately, bigger than you are. These entities are (aside from an historically accommodating and malleable Federal Reserve) an angry Greece and to a much grander perspective - the EU. The limits to GS's reach are being probed at this moment among EU member nations which find themselves unwittingly on the losing side of yet another Goldman Sachs trade.

[Tansy_Gold]

27. No.

Unlike a pet dog that runs away and has to be brought home after its fling, GS is a rabid dire wolf that will only stop its killing when its prey rises up and exterminates it. This is not an animal that can be tamed; it can only be destroyed.




Tansy Gold

[Demeter]

28. Another Plank in the Platform, Tansy

Kill the rabid Corporations! Collar the rest.

This campaign's got legs!

[Dr.Phool]

47. As Demeter would say.....

Long overdue. But, they own the government.

[ozymandius]

9. SEC Curbs Short Selling, Disappointing Goldman Sachs

....
SEC commissioners voted 3-2 today to restrict short sales of a company’s stock once it falls 10 percent from the previous day’s closing price. When the 10 percent threshold is triggered, traders could only execute short sales for the stock at a price above the market’s best bid. The curb would be in place through the following day.

General Electric Co., Charles Schwab Corp. and more than 5,600 people who signed a petition sent to the SEC wanted a short-selling restriction that was always in effect, similar to the so-called uptick rule the agency abolished in 2007. Goldman Sachs Group Inc. and hedge funds Citadel Investment Group LLC and D.E. Shaw & Co. lobbied against a limit. ....

Once the rule takes effect in 60 days, securities firms and stock brokers will have another six months to revise their trading systems to implement the changes. The SEC estimates implementation will cost the financial industry about $1 billion, or an average of $70,000 to $90,000 per firm. Ongoing costs will also be about $1 billion a year, or $120,000 per firm, the SEC estimated. ...

Short selling was blamed by lawmakers, former Morgan Stanley Chief Executive Officer John Mack and investors for pushing the U.S. economy toward the brink of collapse by driving down bank stocks. Under pressure from politicians, the SEC temporarily banned bearish bets against almost 1,000 financial stocks in September 2008.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aDtSKApox3UM

[Hugin]

12. Ah, well... They still have HFET on the Dark Market to ruin Governments with, poor babies.

Dayum, 60 days and then 6 months to implement... Sounds like some kind of a mid-evil alchemy formula.

What's wrong with, "DO IT NOW!"?

[ozymandius]

21. If one slaps those fines on today's trades -

I'll bet these trading entities will get their systems in order in about two hours. There's nothing like the loss of revenue that effectively cracks the whip over some heads.

[Ghost Dog]

14. China's economic macro-control to be tested in 2010

(Xinhua) Updated: 2010-02-26 11:50

BEIJING: China's macroeconomic management would be put to the test both by the domestic and international markets in 2010, said Chairman of National Development and Reform Commission (NDRC) Zhang Ping Friday.

The country's fiscal and monetary policies would be tested given the uncertainties of 2010, Zhang said.

"As to monetary policies, if the bank continues to provide easy loans, inflation may occur. But if the government tightens monetary policies too soon, the economy may relapse into recession." said Li Daokui, director of the Center for China in the World Economy, Tsinghua University.

Last year, Chinese banks lent an unprecedented 9.6 trillion yuan ($1.4 trillion), nearly twice as much as 2008, and nearly half of 2009's gross domestic product (GDP).

This year, for fear of asset bubbles and bad loans, the banking regulators have begun to put the brakes on bank lending. The People's Bank of China (PBOC), China's central bank, raised the reserve ratio by 0.5 of a percentage point earlier this month, hoping to reduce lending.

According to the PBOC, new loans in January totaled 1.39 trillion yuan, down 230 billion yuan year-on-year, and China Banking Regulatory Commission Chairman Liu Mingkang said the Chinese government planned to restrict credit supply to 7.5 trillion yuan (about $1.1 trillion) in 2010.

Too much public investment caused weak private investment and overcapacity in some industries like steel, said Zhang Xiaoqiang, vice chairman of the NDRC.

"There's (sic) uncertainties about economic growth restructuring and fiscal stimulus plans," said Tang Min, vice secretary-general of China Development Research Foundation.

The central government allocated about 924.3 billion yuan for public spending last year, 503.8 billion yuan more than the 2008 budget, said Finance Minister Xie Xuren.

To face the challenges, fiscal policies would focus on consumption stimulus and development of new economic sectors like new energy industries, said Xie at the Central Economic Work Conference held last month.

Xie said that in order to promote consumption in rural areas, the government would raise the purchase price of farm produce, and reduce taxes for home appliances sold in rural areas.

According to Xie, China cut taxes by an upward of 500 billion yuan last year, and consumption was spurred. For example, sales of automobiles reached 130 million units, up 38.5 percent year-on-year, he said.

To develop new industries, the government would subsidize high technology companies regarding interests on loans, and reduce taxes for those companies, Xie said.

Apart from domestic challenges, uncertainties in the international market also affected China's economy.

The global financial crisis and sovereign debt crisis in Europe would reduce international demand for China's exports, said Zhen Liansheng, a researcher at Institute of World Economics and Politics with Chinese Academy of Social Sciences.

Net exports would drag down the GDP growth rate by 0.5 of a percentage point this year, said the Center for Forecasting Science of the Chinese Academy of Sciences.

Official statistics show net exports dragged the GDP growth down by 3.9 percentage points, or 44.8 percent in 2009, as exports dropped 16 percent year-on-year to $1.2 trillion, and imports dropped 11.2 percent to $1.01 trillion.

/. http://www.chinadaily.com.cn/bizchina/2010-02/26/content_9509849.htm

[Festivito]

15. Debt: 02/24/2010 12,401,781,166,870.02 (DOWN 7,593,512,992.07) (Wed)

(Down a bit. 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)
= 7,893,872,450,323.33 + 4,507,908,716,546.69
DOWN 81,552,792.52 + DOWN 7,511,960,199.55

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: $9.71, ABOUT TEN BUCKS for a 1B$ 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 308,824,158 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 $40,158.07.
A family of three owes $120,474.2. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 23 reports in the last 30 to 33 days.
The average for the last 23 reports is 4,318,072,997.94.
The average for the last 30 days would be 3,310,522,631.76.
The average for the last 33 days would be 3,009,566,028.87.
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$/day.
There were 99 reports in 147 days of FY2010 averaging 4.97B$ per report, 3.35B$/day.
Above line should be okay

PROJECTION:
There are 1,061 days remaining in this Obama 1st term.
By that time the debt could be between 13.9 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)
02/24/2010 12,401,781,166,870.02 BHO (UP 1,774,904,117,956.94 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 +0,491,952,163,358.30 ------------* * * * * * * * * * * * BHO
Endof10 +1,221,513,875,005.30 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Linear Projection

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
02/03/2010 +000,334,538,130.44 ------------********
02/04/2010 -009,677,289,403.68 --
02/05/2010 -000,081,816,346.60 ----
02/08/2010 +000,119,837,978.11 ------------******** Mon
02/09/2010 +000,368,016,270.35 ------------********
02/10/2010 -000,056,577,287.25 ----
02/11/2010 +007,265,093,186.33 ------------*********
02/12/2010 -000,104,736,856.82 ---
02/16/2010 +030,097,605,306.92 ------------********** Tue
02/17/2010 +000,408,694,886.67 ------------********
02/18/2010 +015,224,901,067.79 ------------**********
02/19/2010 +000,114,262,910.59 ------------********
02/22/2010 -000,206,249,204.22 --- Mon
02/23/2010 +000,404,218,476.39 ------------********
02/24/2010 -000,081,552,792.52 ----

44,128,946,322.50 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=4282995&mesg_id=4283023

[JDPriestly]

54. The solution is simple:

Raise the taxes on capital gains and on stock market trades.

Lower taxes on products produced in the U.S. by instituting a national sales tax (VAT) and reducing employment taxes. That will make it cheaper to produce products and employ people within the U.S. and more expensive to import products and outsource jobs. It will even the playing field just a tiny bit. FI

Balancing a budget requires both cutting expenses and increasing revenue.

You achieve both goals by getting Americans back to work in jobs that pay well. That increases the tax base and decreases the demand for public welfare services -- two birds with one stone.

A VAT would not be regressive if you exempted food and children's clothing as well as medicines and medical care and used the revenue to replace some of the taxes we now get from FICA for Social Security and Medicare and also to replace some of the employment taxes that employers pay.

European countries impose VAT taxes. Even tax-cheats have to pay the VATs.

[Festivito]

72. If only raising revenue and cutting expenses was simple.

Raising tax rates and adding tax venues ... not easy.

Adding tax venues such as VAT that can be regressive ... not seen as good to progressives.

It's such a messy messy game.

[Festivito]

71. Debt: 02/25/2010 12,433,661,592,275.45 (UP 31,880,425,405.43) (Thu)

(Up a goodly amount. 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)
= 7,928,696,226,219.39 + 4,504,965,366,056.06
UP 34,823,775,896.06 + DOWN 2,943,350,490.63

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: $9.71, ABOUT TEN BUCKS for a 1B$ 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 308,832,798 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 $40,260.17.
A family of three owes $120,780.52. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 23 reports in the last 30 to 31 days.
The average for the last 23 reports is 5,648,917,639.43.
The average for the last 30 days would be 4,330,836,856.90.
The average for the last 31 days would be 4,191,132,442.16.
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$/day.
There were 100 reports in 148 days of FY2010 averaging 5.24B$ per report, 3.54B$/day.
Above line should be okay

PROJECTION:
There are 1,060 days remaining in this Obama 1st term.
By that time the debt could be between 13.9 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)
02/25/2010 12,433,661,592,275.45 BHO (UP 1,806,784,543,362.37 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 +0,523,832,588,763.70 ------------* * * * * * * * * * * * * BHO
Endof10 +1,291,884,424,991.56 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Linear Projection

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
02/04/2010 -009,677,289,403.68 --
02/05/2010 -000,081,816,346.60 ----
02/08/2010 +000,119,837,978.11 ------------******** Mon
02/09/2010 +000,368,016,270.35 ------------********
02/10/2010 -000,056,577,287.25 ----
02/11/2010 +007,265,093,186.33 ------------*********
02/12/2010 -000,104,736,856.82 ---
02/16/2010 +030,097,605,306.92 ------------********** Tue
02/17/2010 +000,408,694,886.67 ------------********
02/18/2010 +015,224,901,067.79 ------------**********
02/19/2010 +000,114,262,910.59 ------------********
02/22/2010 -000,206,249,204.22 --- Mon
02/23/2010 +000,404,218,476.39 ------------********
02/24/2010 -000,081,552,792.52 ----
02/25/2010 +034,823,775,896.06 ------------**********

78,618,184,088.12 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=4284312&mesg_id=4284352

[Demeter]

23. Good Morning Ozy and Crew

Well, winter has arrived in the North Country, with more snow than you can shake a flamethrower at.

I am cold again. Brrrrrr.

Did you know it's going to be MARCH next week? And we are only now getting the snow!

I'm so tired of it. Whine whine whine. It was so nice when the temperature remained above freezing, that I thought life was worth living.

And the economic news mirrors the outside. Economic winter, backsliding into the mess we hoped to be escaping.

I sure hope that there are some nations bigger than Goldman Sachs that can and will take it down. Ours can't be bothered....


AnneD just reminded me that it's FRIDAY, campers! She suggested a theme for the Weekend, but it hasn't any tie-in to music or film. Got a suggestion for that? Which artist/genre/whatever would you like to wallow in, while reading of doom and destruction?

[Ghost Dog]

34. North Country.

http://www.wikio.es/video/1955062

Not exactly Beach Boys.

[Roland99]

35. How about some Go-Gos?

Cuz I'm going to Disneyworld tonight for the weekend (w/my daughter, my gf and her daughter)

:)



Now if only it wasn't going to be cold/rainy the first half of tomorrow...



oops...forgot the link:
http://www.youtube.com/watch?v=2RHTiXvELNg

[Demeter]

41. Let's Keep this in mind for next time

In honor of the The Man in Black.

[Roland99]

48. Oh shoot. I was even going to wear all-black today.

Ain't No Grave is one of my favorite new songs out right now.

[Demeter]

64. Wear Black anyway

[Roland99]

68. Well, already at work, though.

And not heading back home before our little weekend trip.

I'm playing a bunch of Johnny on my iTunes, though. Does that count? :-)

[Demeter]

75. Sure!

[Dr.Phool]

44. I thought we lived in Florida.

Ain't it supposed to be 90 degrees and humid right now?

Gotta snuggle up to keep warm now.


Careful: The one on the left bites.

[UpInArms]

45. ahhhhh!

what a great pic, Doc!

:grouphug:

[Dr.Phool]

46. 6 months old.

Right now, if you were here, you'd be laughing your ass off. The other night, I was playing with her and a tennis ball, keeping it away like a soccer player with my feet. Right now, she's running around the dining room, batting the ball around with her feet, with a squeaky toy in her mouth.

[Roland99]

49. Awesome!

And, yeah, I moved down here to get AWAY from the cold?

Coldest Feb. in Orlando since 1958?? :wtf:

[Demeter]

65. You Are Teaching The Pup Soccer?

Well, it would be good for Youtube, maybe even TV if they still have that pet tricks show.

[Warpy]

63. REVEL in that cold rain!

Every time I've been there it's been so damned hot I've run out of gas in a couple of hours. In addition, huge crowds in fair weather means long lines for all the good stuff.

If you haven't been there before, definitely take in the haunted house. The kids will love it and you won't be bored.

Skip "It's a Small World." Send the kids through that one alone. Trust me on this.

[Roland99]

70. heh...thanks

This will be about the 10th visit to the parks this year alone. Went a good 50-60 times last year.

Got my annual pass with my first paycheck after I moved here last May. :)

I prefer the hot weather actually, too!



Oh, and Small World is one of my favorites. I force my 15 year-old to ride it with me! :evilgrin:

[DemReadingDU]

37. Today is Johnny Cash's birthday

If he had lived, he would be 78
http://en.wikipedia.org/wiki/Johnny_Cash

And
Apple's iTunes has sold its 10 billionth tune. Apple said Thursday that its online music store crossed the threshold Wednesday when 71-year-old Louie Sulcer of Woodstock, Ga., bought "Guess Things Happen That Way" by Johnny Cash. iTunes had promoted the 10 billion mark and celebrated the milestone by giving Sulcer a $10,000 iTunes gift card.
http://www.npr.org/templates/story/story.php?storyId=124090682

[Demeter]

40. Johnny Cash It Is, Then

His name alone ties into our raison d'etre.

And I can make a horrible pun with AnneD's topic (you'll just have to wait for it).

See you all tonight!

[Demeter]

24. FBI Arrests Another Madoff Executive

http://www.nbcnewyork.com/news/local-beat/FBI-Arrests-Another-Madoff-Executive-85344702.html

The one-time director of operations for the Bernie Madoff firm was arrested Thursday for his alleged role faking records to help the $65 billion dollar scheme succeed for decades.

Daniel Bonventure, 63, was arrested at his Manhattan apartment. He had worked with Madoff since 1968 and became director of operations in 1978. In that role, Bonventure was in charge of internal accounting as well as maintaining stock records. Investigators have said no trades were ever done at the Madoff firm and investors were sent fake statements each month. Despite repeated warnings, for years the Securities and Exchange Commission failed to investigate warning signs of the massive fraud.

Prosecutors said Bonventure lined his own pockets as investors were ripped off. From 2002 through 2006, he allegedly took $1.8 million through fake trades. The IRS also says he is a tax cheat who did not report at least $250,000 in money he owed the government.

"Daniel Bonventure allegedly authored the fraudulent books that for years effectively hid the doomed state of an investment firm founded on fraud," said U.S. Attorney Preet Bharara.

FBI Assistant Director Joseph Demerest said Bonvenutre "affirmatively fabricated basic financial documents to conceal the dire condition of a financial empire that was really a house of cards."

Bonventure's arrest comes as the FBI and IRS continue to investigate Madoff's sons and brother. Prosecutors continue to push for bail for Madoff's right-hand man, Frank DiPascali, who admits helping to orchestrate the scheme. But he is now cooperating and naming names.

Madoff's outside accountant and several computer programmers at the firm have also been charged.

As for Madoff, he remains in prison in North Carolina serving what amounts to a life sentence.

[Demeter]

26. Health insurance hikes stun small businesses

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4284266

[Demeter]

29. Joseph Stiglitz: Bankers Made Reckless Bets on the Economy, Knowing Taxpayers Were Going to Pick up

http://www.alternet.org/economy/145773/joseph_stiglitz%3A_bankers_made_reckless_bets_on_the_economy%2C_knowing_taxpayers_were_going_to_pick_up_the_tab


Joseph Stiglitz: Bankers Made Reckless Bets on the Economy, Knowing Taxpayers Were Going to Pick up the Tab
The Nobel Prize-winning economist argues the banking industry "failed in their core societal function," helping lead to the great economic crash of '08.

Nobel Prize-winning economist Joseph Stiglitz has served as the Chairman of President Bill Clinton's Council of Economic Advisers and Chief Economist for the World Bank. He has been a persistent critic of free-market economics, whose recent book Freefall: America, Free Markets, and the Sinking of the World Economy (W. W. Norton & Co., 2010) traces the roots of the financial crisis and details the government's flawed response. Dr. Stiglitz discussed the crash of '08 in an interview with AlterNet economics editor Zach Carter.

SEE INTERVIEW AT LINK

[Demeter]

30. Rachel Maddow Speaks Definitively on Health Care

http://www.youtube.com/watch?v=OPIPxjLH0DQ

crosspost

[UpInArms]

32. dollar watch

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

Last trade 80.606 Change -0.181 (-0.23%)

Opening Comment 02.26

http://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/opening_comment/2010-02-26-0535-Opening_Comment_02_26.html

A lot of arguably USD supportive developments on Thursday; with more hawkish rate expectations in the US, escalating concerns over Greece, debt and political worries in the UK, and consequently lower equity and commodity prices, all factoring into the push for a stronger buck.

However price action has been quite telling, with the Euro managing to close marginally higher on the day, despite everything that was thrown at it. The major currency has been beaten down severely over the past several weeks, and we could at a minimum, be looking at the start to some form of a shorter-term base by 1.3450. Thursday’s bullish close, followed by Friday’s early break back above the Thursday high, strengthens the case for the potential rebound.

With the exception of a downgrade to the UK economy from the EC, things have been risk positive in Asia. Japanese CPI has come in not as soft as was expected, while industrial production was firmer. In Australia, private sector credit rose by more than consensus, while in New Zealand, trade data was much stronger. Meanwhile, UK GfK consumer confidence was released and managed to show a decent improvement from the previous print. On the official circuit, Japan’s Kan was out saying that further efforts were needed to avoid deflation.

...more...

Dollar Attempts to forge a New 8-Month High but Risk Trends Wouldn’t Follow Through

http://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2010-02-25-2349-Dollar_Attempts_to_forge_a.html

Through the Asian and European sessions, the pressure on risk appetite was palpable. A distinct correlation between equities, commodities and currencies offered a clear sign that a primary fundamental driver was once again in control of the market: investor sentiment. However, depending on which session close participants referred to; the assessment for the day can be very different. Through the London close, the demand for stability and the move to liquidate risky positions was still on pace. Through this period, the Dollar Index was climbing higher; but the currency was still short of setting a new eight-month high. Fast-forward to the close of the New York trading hours and the dollar was actually in the red and the range for the day would define a session that was perhaps far more reserved than what was carved out in other asset classes. This divergence in momentum is remarkable, because it suggests volatility was naturally tempered by speculative interests. Just as the dollar was unable to take the next step to revive its month-long bull trend, the Dow Jones Industrial Average wouldn’t come close to reestablishing the bear wave that has tentatively developed in January. In reality, this false dawn for the bearish crowd isn’t anything new. This has generally been the pace of things for the past week. In fact, the terrain for risk wasn’t particularly rough today. The only headline that would carry the necessary weight to significantly alter underlying sentiment was the warning from Moody’s that it may downgrade Greece’s credit rating. However, this is not a new threat and the market has weathered this specific concern for some time now.

Going forward, sentiment trends will likely keep the reins on the dollar; but changes in the currency’s fundamental backdrop can slowly alter its relationship to this unpredictable and potent driver. From the docket today, the consensus was one that would nullify some of the favor the greenback has been able to acquire over the past few weeks. Top, scheduled event risk this morning was the durable goods orders report for January. While the 3.0 percent increase in the headline reading would seem a bullish takeaway, the details would leave traders with a far different assessment. Excluding volatile transportation orders, the indicator actually reported its largest decline in five months with a 0.5 percent contraction. Furthermore, the figure for non-defense capital goods excluding aircraft (a sign of future investment) unexpectedly dropped 2.9 percent. Another notable release was the Federal Housing Finance Agency’s housing price data for December and the fourth quarter. The 1.6 percent drop on the month was the largest in 13 months, and a 0.1 percent dip in the quarterly reading followed the first positive reading since 2007. Taken with the record low in new home sales yesterday, it looks like a vital component of growth may not contribute to a recovery.

Looking to the final 24-hours of trading this week, there are notable indicators scheduled for release; though, this is a low probability that they can tap into the most element trend (investor sentiment) to truly establish a new trend. Though it is a revision number, the fourth quarter GDP data could clarify the United States’ standings in the global recovery scheme. When establishing forecasts for interest rate (and thereby speculating on expected returns), growth is a leading and contributory gauge. The headline figure is projected to mark little change, but notable changes in key component data (personal consumption, government spending, capital investment, etc) can easily change things.

...more...

[Roland99]

33. Index Futures - 7:57am - A bag of mexed missages

S&P 500 1,102 +0.10 +0.01%
DOW 10,342 +26.00 +0.25%
NASDAQ 1,812 -1.50 -0.08%

[TalkingDog]

52. I posted this yesterday in GD,

but thought it would be worth reposting given the discussion up-thread on statistics, damned statistics and liars.



"Main Street" Economic Conditions Misrepresented by GDP

http://www.sciencedaily.com/releases/2010/02/1002181731...

Traditional gauges of economic activity severely overstate the standard of living as experienced on Main Street, say University of Maryland researchers, who have worked with their state officials to apply a more accurate and greener index.

snip

"This is not merely a question of dueling statistics -- the difference in the two figures can be startling and represents very different pictures of our standard of living," says Matthias Ruth, director of the University of Maryland's Center for Integrative Environmental Research (CIER), which calculated the GPI for the state.

"In 2000, the classic economic measure showed Maryland more than 50 percent wealthier than we actually were, as measured by the GPI." Ruth explains.

[Dr.Phool]

55. Linky no worky

But, I found it here

http://www.sciencedaily.com/releases/2010/02/100218173128.htm

[TalkingDog]

57. Sorry bout the link. See if this works any better.

http://www.sciencedaily.com/releases/2010/02/100218173128.htm

[citizen snips]

58. Economy grew 5.9% in fourth quarter

NEW YORK (CNNMoney.com) -- The U.S. economy grew at a slightly faster pace than originally thought during the last three months of 2009, according to a government report Friday.

The nation's gross domestic product, the broadest measure of the nation's economic activity, grew at an annual rate of 5.9% in the quarter, the Commerce Department reported. Economists surveyed by Briefing.com had forecast that the revision would show the same 5.7% growth that was originally reported a month ago.

The report is another sign that the U.S. economy has pulled out of the deepest downturn since the Great Depression. The solid growth, the best improvement for the U.S. economy in more than six years, follows a 2.2% annualized increase in the third quarter. Most economists now agree that the recession probably ended at some point last summer.

Still, the strong end of 2009 wasn't enough to make up for the even larger declines in the first half of the year. For the full year, GDP fell 2.4%, the biggest decline in the annual reading since 1946.

more...
http://money.cnn.com/2010/02/26/news/economy/gdp/

[citizen snips]

59. Sales of Previously Owned Homes Fell 7.2% in January (Update1)

Feb. 26 (Bloomberg) -- Sales of previously owned U.S. homes unexpectedly declined in January for a second month, signaling the government’s extension of a tax credit is being limited by a lack of job growth.

Purchases fell 7.2 percent, the second-largest decline ever, to an annual pace of 5.05 million, the National Association of Realtors said today in Washington. In December, sales decreased a record 16.2 percent. The median sales price was unchanged from the same month last year, the group said.

The federal tax incentive helped drive purchases in the second half of 2009 and its extension in November may have trouble generating as much demand in coming months. Mounting distressed sales are making it harder to clear inventories, indicating job growth is required to sustain the recovery in the housing market.

“The recovery in housing is likely to be a lot more prolonged than many had hoped,” said Mark Vitner, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina. “Outside of the tax credit, there isn’t that much improvement.”

more...
http://www.businessweek.com/news/2010-02-26/sales-of-existing-homes-in-u-s-probably-increased-in-january.html

[Zenlitened]

69. "The recovery... is likely to be a lot more prolonged."

:rofl:

Doubleplusgood!

:rofl:

[Demeter]

76. I Think They Meant "Delayed"

You can't prolong something that hasn't started.

[Zenlitened]

77. Well, but they tried to finesse it, and came up with doublespeak.

He was trying to say it will take a long time for housing to recover, but without saying "it will take a long time." :D

[citizen snips]

60. AIG 4Q Loss Narrows After 2008 Record

NEW YORK (Dow Jones)???American International Group Inc. (AIG) posted a nearly $9 billion fourth-quarter loss as the troubled insurance giant continued to be hammered by investment writedowns and divestment charges.

The results were a significant improvement from the year-ago period when AIG reported a $62 billion quarterly loss, the biggest in the company's history. But shares of the giant government-controlled insurer were down 8.4% in early trading at $25.19.

The company's annual report gave little encouragement regarding prospects for the company's insurance business, or the value of its common stock, which is heavily outweighed by the company's large obligations to repay the U.S. government.

The mortgage, credit and stock markets have all improved significantly since AIG's government bailout in September 2008. But the insurer is still struggling to rebound from the government's multi-billion-dollar bailout. As stock markets rallied, write-ups in its financial-products division and higher investment income helped the bottom line, but they couldn't veil the fact that AIG's main insurance businesses have remained weak.

more...
http://online.wsj.com/article/BT-CO-20100226-708949.html?mod=WSJ_latestheadlines

[citizen snips]

61. Greek PM says economic crisis confirmed worst fears

ATHENS (Reuters) - Prime Minister George Papandreou on Friday vowed to ignore the political costs and take drastic measures to pull Greece out of a debt crisis threatening the stability of the euro zone.

Speaking to parliament after a visit by EU economic inspectors, Papandreou said Greece did not want other countries to pay for its debts but expected solidarity from its European peers as it struggled with worse than expected fiscal problems.

"Unfortunately, history has fully confirmed our worst fears," he said. "Our duty today is to forget about political costs and only think about the survival of our country ... Past policies make it necessary to proceed to brutal changes."

He appeared to be preparing the ground for a fresh set of fiscal measures expected ahead of a mid-March EU deadline to show results in cutting a double-digit deficit. Economic Affairs Commissioner Olli Rehn visits Athens next week.

more...
http://finance.yahoo.com/news/Greek-PM-says-worst-fears-rb-2423745793.html

[citizen snips]

62. Consumer sentiment weakens in February

NEW YORK (Reuters) - Consumer sentiment was weaker in February, as Americans grew more impatient with the government's gridlock over efforts to stimulate jobs, a survey released on Friday showed.

While not fearful of another spike in layoffs, consumers have turned more gloomy about their job and income prospects, according to the Thomson Reuters/University of Michigan's Surveys of Consumers.

"Consumers have been getting more impatient with the slow progress of the stimulus program, and confidence in the Obama administration's economic policies has begun to wane," Richard Curtin, director of the surveys, said in a statement.

The survey's overall index of consumer sentiment was at 73.6 in February, down from 74.4 in January and below the 74.0 forecast by analysts polled by Reuters. The preliminary February reading was 73.7.

more...
http://finance.yahoo.com/news/Consumer-sentiment-weakens-in-rb-

[Dr.Phool]

67. Tampa Bay home prices slide 11% in January.

:wtf:

I know it's bad out there, but I ain't buying this.
------------------------------------------------------

Tampa Bay home prices backslide 11 percent in January

By James Thorner, Times Staff Writer
Posted: Feb 26, 2010 12:13 PM

http://www.tampabay.com/news/business/realestate/tampa-bay-home-prices-backslide-11-percent-in-january/1076061

Tampa Bay home prices backslid 11 percent in January, a sign that banks may be feeding more lower-priced foreclosure homes onto the local housing market.

The typical Tampa Bay single-family home sold for $125,600 in January, Florida Realtors said. Just a month earlier, the median home price was $140,000.

Year over year, prices increased a tad from the $122,400 reported in January 2009, but some Realtors were surprised by the one month drop.

Pinellas County's housing market might provide a clue. After a year of falling home listings, inventory shot up by 800 in January, according to the Pinellas Realtor Organization.

Some Realtors told the Times that lenders content last year with a foreclosure log jam in the courts have begun releasing those homes this year onto the market. On average, bank-owned home sell for less than two-thirds the price of conventionally sold homes

Until January, Tampa Bay home prices had flattened since the spring of 2009, buoyed in part by the $8,000 first time home buyer tax credit.

With the price decline came greater buyer interest. Tampa Bay home sales rose 19 percent year over year, from 1,342 in January 2009 to 1,603 in January 2010. The one-month change was less impressive: Realtors reported home sales of 2,123 in December, much higher than January's.

(snip)

[Rhiannon12866]

74. K&R! That cartoon says it all...

x(

[fan of the arts]

78. The markets drift, they are completely propped up, corruption rules

Whodda thought, in a country wherein war criminals go free, where civilians are regularly killed in wars that have no purpose, where the court picks a president, where propaganda is discussed as if it's reality.

I see very little comment on how the markets are trading lately, because it's blatantly obvious they're floating like a dead body in a river that runs through a criminal city. It's about time to completely give up on ever "investing" in anything this corrupt.

[Ghost Dog]

79. Nicely poetic, that.

Thanks and welcome :)