STOCK MARKET WATCH, Tuesday, September 6, 2011

[Pale Blue Dot]

Source: du

STOCK MARKET WATCH, Tuesday, September 6, 2011

AT THE CLOSING BELL ON September 2, 2011

Dow 11,240.26 -253.31 (-2.25%)
Nasdaq 2,480.33 -65.71 (-2.65%)
S&P 500 1,173.97 -30.45 (-2.59%)
10-Yr Bond... 2.00 +0.01 (+0.35%)
30-Year Bond 3.30 -0.01 (-0.15%)

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Market Conditions During Trading Hours

Euro, Yen, Loonie, Silver and Gold

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Bush Administration Officials Convicted = 2
Names: David Safavian, James Fondren
Dishonorable Mention: former House majority leader, Tom DeLay

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

Financial Sector Officials Convicted since 1/20/09 = 12

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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

[Pale Blue Dot]

1. Today's report

Sep 06 10:00 ISM Services Aug 52.0 51.0 52.7

Read more: http://www.briefing.com/investor/calendars/economic/#ixzz1XAYH70Lt

[Pale Blue Dot]

2. Oil falls to near $84 on global slowdown fears

SINGAPORE – Oil prices headed lower to near $84 a barrel Tuesday in Asia as fears of a recession in developed countries sent stock markets and commodities lower.

Benchmark oil for October delivery was down $2.13 to $84.32 at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. Crude last settled at $86.45 on Friday because U.S. markets were closed Monday for the Labor Day holiday.

In London, Brent crude for October delivery was up 90 cents at $110.96 on the ICE Futures exchange.

European and Asian stock markets have sunk so far this week amid growing concern a debt crisis among countries using the euro common currency will undermine economic growth there and around the world.

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

[xchrom]

69. BP unveils £700m oil project move

http://www.independent.co.uk/news/business/news/bp-unveils-700m-oil-project-move-2350131.html

Oil giant BP is to invest up to £700 million in extracting oil from a North Sea reservoir in a move which could create about 1,000 jobs.

The Kinnoull site is the largest of three reservoirs which are being developed as part of the wider project in the Andrew platform area.

BP said production from Kinnoull is forecast to peak at 45,000 barrels per day.

It is expected that production will begin in 2013.

[Pale Blue Dot]

3. U.S. Index Futures Plunge, Signaling Decline on European Banking Concerns

U.S. stock futures fell, indicating that the Standard & Poor’s 500 Index will slide for a third day, as European markets showed growing concern that the sovereign- debt crisis is worsening.

Bank of America Corp. (BAC) sank 3.2 percent in early New York trading. Alcoa Inc. (AA), the largest U.S. aluminum producer, and Caterpillar Inc. (CAT), the biggest construction and mining-equipment maker, led declines among stocks linked to economic growth.

S&P 500 futures expiring in September lost 1.4 percent to 1,153 at 10:40 a.m. in London, having earlier slumped as much as 2.8 percent. Futures on the Dow Jones Industrial Average retreated 138 points, or 1.2 percent, to 11,070. Both contracts pared losses after the Swiss central bank set a minimum franc exchange against the euro.

U.S. markets were closed for a holiday yesterday as the MSCI All-Country World Index fell 2 percent after Italian bonds dropped for an 11th day, Spanish debt declined and the cost of government and bank-default insurance rose to records. European stocks rebounded today, with the Euro Stoxx 50 Index advancing 1.1 percent.

http://www.bloomberg.com/news/2011-09-05/s-p-500-index-stock-futures-fall-signaling-more-losses-after-jobs-report.html

[DemReadingDU]

35. Futures down -232

http://www.bloomberg.com/markets/stocks/futures/

[Roland99]

36. Was just about to post that. Holy Shnikeys!

[rfranklin]

4. U.S. banks offered deal over lawsuits: report

U.S. banks offered deal over lawsuits: report
1:04am EDT
LONDON (Reuters) - Big U.S. banks in talks with state prosecutors to settle claims of improper mortgage practices have been offered a deal that may limit their legal liabilities in return for a multibillion-dollar payment, the Financial Times reported on Tuesday.

The talks aim to settle allegations that banks including Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial, seized the homes of delinquent borrowers and broke state laws by employing so-called "robosigners," workers who signed off on foreclosure documents en masse without reviewing the paperwork.

The FT, citing five people with direct knowledge of the discussions, said state prosecutors have proposed settlement language in the "robosigning" cases that also might release the companies from legal liability for wrongful securitization practices.

A spokesman for Iowa Attorney General Tom Miller, who is leading states' negotiations with the banks, denied any deal has been offered on securitization.
-more-
http://www.reuters.com/article/2011/09/06/us-banks-deal-idUSTRE7850MK20110906

[Fuddnik]

7. Of course they are.

Did anyone ever expect anything different?

They've got, a get out of jail free card, a credit card with no limit, and no minimum payments. Hell, they don't even have to make any payments.

Snidely Whiplash steals a bunch of grannies homes, destroys thousands of lives, and can settle for 10% on the dollar, with another 2% kicked in for campaign contributions. And if you give 3%, they'll make you Treasury Secretary or Head of the SEC or something.

They've got the wrong terrorists in Gitmo.

[xchrom]

17. heard about that yesterday -- pisses me off to no end. nt

[Demeter]

28. NO DEAL!

:spank: :spank: :spank: :spank: :spank: :spank: :banghead: :banghead: :banghead: :banghead: :banghead: :banghead:

[Demeter]

37. 50 State Attorney General Effort to Sell Out to Banks Makes Even More Egregious Offer

http://www.nakedcapitalism.com/2011/09/50-state-attorney-general-effort-to-sell-out-to-banks-makes-even-more-egregious-offer.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+NakedCapitalism+%28naked+capitalism%29

The so-called 50 state attorney general mortgage settlement negotiations (a bit of a misnomer, since at least 4 attorneys general appear to be out, and various Federal banking regulators are also party to the deal) are looking more and more like a desperate effort to reach any kind of a deal so as to save the officialdom’s face. The only good news is the banks are so insistent on total victory that despite the efforts to pretend the talks are making progress, the odds of a deal being consummated still look remote. It is nevertheless frustrating to continue to see the media depict the flailing about by the attorneys general headed by Tom Miller as "progress". I’ve been involved in negotiations for much of my career, and I’ve never seen so much incompetence on open display. The Financial Times headline, “US banks offered deal over lawsuit” is substantively misleading. You can’t credibly put forward a proposal unless your side has signed off on it. Yet he has just made an offer that his own side may not support. And this isn’t the first time Miller has pulled this trick.

Per the Financial Times:

According to five people with direct knowledge of the discussions, state prosecutors have proposed settlement language in the “robosigning” case that also might release the companies from legal liability for wrongful securitisation practices.

Some state officials have expressed concern that they have offered the banks far too broad a release from liability. Others say the broad language was perhaps inadvertently crafted and will be tightened as negotiations continue. Participants on both sides stressed the talks remain fluid.

This text suggests reservations well beyond those expressed by the attorneys general known to be likely to refuse to sign onto the “50″ AG effort: Nevada, New York, Delaware, and Massachusetts. All have expressed reservations about an overly broad release, which is the first concern mentioned. That means these four, and perhaps additional attorneys general, fall into this group. But note that the article says that others think the release was drafted ineptly, which suggests they were not opposed to a release covering issues beyond robosigning if it was well crafted. That further suggests, as we have inferred from other news stories on the progress of the talks, that Miller at a minimum is doing a poor job of representing his side and is keeping them at a remove. Or it may point, as we suspect, to the fact that he now has his manhood at stake in getting an agreement inked. That means he is effectively working on behalf of the banks against his fellow attorneys general, since his side looks to be more malleable than the banks (the assumption probably is that the AGs will yield to the banks’ position to reap several hundred million dollars in blood money for their budget starved states). What is also astonishing is the notion expressed in the extract above, that some of the AGs seem to think that the release language may get tougher. Huh? If it has been presented to the banks, as the headline of the article suggests, that would be a major retrade, and would be treated as operating in bad faith by the other side. That hope is simply bizarre, and I wonder if Miller tried to sell it to some unhappy AGs to minimize dissent. The article later gives more of the substance of the proposed release, and it isn’t hard to see why some attorneys general have reservations:

The worry over the states’ counterproposal stems from its treatment of loan documents. The term sheet proposes to release the banks from legal liability over how mortgage documents were maintained, prepared and transferred, people familiar with the matter said.

Though the counteroffer attempts to release the banks from liability with respect to home repossessions, and explicitly states that the release does not include securitisation claims, the language is broad enough in that it could prevent state officials from bringing securitisation claims in the future should they sign up to the agreement.

At the heart of securitisation claims, which involve missteps in how home mortgages were bundled into bonds, are allegations that the banks did not properly maintain and transfer documents from one step in the complicated chain to the next.

The securities law issue is a headfake; the statute of limitations has passed for securities litigation on these deals, save for ongoing representations made in periodic filings (which is a real issue for the servicers and trustees, and note that the major trustees, such as Bank of New York, Deutsche Banks, and US Bank, are not party to these talks and hence would not be covered).

While it is hard to know from this remove exactly what is contemplated, this (EFFORT) to release the banks from liability for chain of title issues has the potential to blow up in the AGs’ faces in states hard hit by the housing meltdown, since this issue will stay in the public eye as borrowers continue to use chain of title arguments to forestall foreclosures...But even with Miller doing his damnedest to drag his colleagues towards the banks’ position, the banks are continuing to play non-negotiable:

However, the banks – some of whose share prices have been battered by concern about their exposure to mortgage-related litigation – are pressing for immunity from a raft of alleged civil violations and have called the latest proposal a “non-starter”.

They say the proposals from state prosecutors will need to be expanded before striking a deal, which is expected to involve a total penalty of $10bn to $25bn.

The two sides will meet again this week to iron out their differences. They are close to an agreement on future standards governing the servicing of home loans, yet remain far apart on other issues, such as legal liability claims, compliance and enforcement, and the amount of cash it will take to settle the allegations.

It looks as if Miller has become committed to getting a sizeable settlement and therefore is trying to back into a juicy enough release to get the banks to sign off on a big enough number. And his and the Feds assumption with the AGs is that they will cave if they are offered the chance to bring hundreds of millions in settlement dollars to cash-strapped states....But from the banks’ perspective, any release by AGs and Federal regulators will not stand in the way of private lawsuits. Nevada, New York, and Delaware are pressing ahead with their investigations into those issues. Any resulting lawsuits will help stoke private litigation. So the defections by a small group of tough-minded AGs makes a settlement by the rest vastly less valuable.

Lordie, this is deja vu all over again. As we said in July:

The latest update is comical, if you read between the lines. The deal is cash for a release. Everything else is decoration. And both sides of that deal are falling apart. The banks are squabbling among themselves as to who has to pony up what, with everyone except maybe BofA posturing that they really don’t owe that much. Oh, and the other side of the equation, the release? The banks and the AGs are not on the same page.

But if you read the Wall Street Journal article on the state of play on talks, you might well be fooled by the upbeat tone and the emphasis on the agreement on the stuff that does not matter (we and others went through the original AG term sheet, and it was pathetic, since virtually all of it was nice sounding exhortations which merely having the banks agree to comply with existing law!). For instance:

All sides have agreed to a framework that would govern how banks meet their obligations once a deal is reached. Those include principal reductions on certain mortgages, forgiveness of second-lien loans, restitution to borrowers and dealing with foreclosure-related blight. A person close to one of the banks said remaining differences are narrowing.

Earth to base, “remaining differences” are irrelevant if the biggest items aren’t close to resolution.

I wish someone would put this effort out of its misery. But as long as the media keeps treating the Miller/Federal regulator PR as serious, yours truly will have to keep debunking it

[Fuddnik]

5. Unrec/ for oversleeping!

Just kidding. First rec. Muddy dog stepped on the keyboard.

[DemReadingDU]

6. lol

I think I'm back, I took my 3 grandkids to Indiana sister for a weekend of swimming and boating. Still resting up!

[Fuddnik]

15. Did you miss the storms?

I just happened to click on the USF-Notre Dame game in South Bend on Sat., and it didn't look pretty.

[DemReadingDU]

22. We had lots of thunder and rain Sunday

Inbetween storms, the kids talked my sister into taking out the boat!
This is southern Indiana, south of Indianapolis.

Spouse said Dayton/Springfield, Ohio area lost electric power in the wee early hours Sunday morning due to high winds and heavy rain.

[xchrom]

8. muggy & rainey here today. my windows were steamed over,

morning!:donut:

[Fuddnik]

13. Pouring rain, thunder and lightning here.

Has been all night, and probably all day today. Tail-end remnants of Tropical Storm Lucifer, or whatever it's name was. You can't tell 'em apart without a scorecard anymore.

[xchrom]

16. bad weather just makes me go to ground. i don't leave the house.

makes the dogs crazy -- but what else am i good for if not to drive them crazy.

[DemReadingDU]

25. My dogs are ok with stormy weather, but

But my previous dog went ballistic, totally freaked out with panting and shaking and trying to climb into small areas. She could tell at least half-hour before the storm came that bad weather was approaching. Better than the weatherman.

[Fuddnik]

34. My two are opposites.

Sara hears thunder, and is under my chair, in my lap, or under my feet.

Rosco hears thunder, and he starts whining, wanting to go out and play in it.

[Tansy_Gold]

56. I have one who tries to climb the bookcases

Absolutely accurate on predicting nearby storms, even if they never drop a drip (or drip a drop) of rain on us. When it's really really bad, only Bendryl will settle her down. The other three are like, "Huh? What? Nothin' goin' on."

Of course, we haven't had any weather like that for quite some time. .. . .



Tansy Gold, reminding herself again that's why they call it a desert.

[xchrom]

9. Coffee Peaks as Latin American Cargoes Surge

http://www.bloomberg.com/news/2011-09-05/coffee-peaking-as-cargoes-carrying-brazilian-beans-surge-freight-markets.html

The rally that drove arabica coffee prices up 50 percent in a year may be ending as record production in Brazil, the highest output in a decade in Central America and a rebound in Colombia’s crop boost exports.

Brazil, the world’s largest grower, may produce up to 3.78 million metric tons (63 million bags) of beans next year, a jump of as much as 37 percent, London-based broker Marex Spectron Group says. Central America will reap the most since the 1999- 2000 season, the U.S. government forecasts. While that won’t be enough to boost shipping rates, it may send coffee down 13 percent to $2.50 a pound in the first quarter and $2.20 in the second, a Bloomberg survey of seven analysts and traders showed.

Arabica, the most-consumed variety, more than doubled since June 2010 as rain curbed output in Colombia, the second-biggest producer, and Brazilian stockpiles fell to their third-smallest in a half-century, USDA data show. ABN Amro Bank NV and VM Group forecast a surplus for the season that begins Oct. 1. Futures are 8.8 percent below the 14-year high reached in May, and Kraft Foods Inc. and J.M. Smucker Co. have cut prices.

[xchrom]

10. Economies in Peril Proving Voters Aren’t Careful About What Is Wished For

http://www.bloomberg.com/news/2011-09-05/economies-in-peril-proving-voters-aren-t-careful-about-what-is-wished-for.html

The world economy is paying a price for democracy.

As recoveries from the U.S. to Europe lose momentum, policy makers are running into gridlock formed by the politicking and ideological preferences of governments that voters have chosen. Republicans and Democrats in the U.S. squabble about how to restrain the budget deficit and spur job growth, while officials throughout the euro zone differ over how best to safeguard the future of the single currency.

The result is what JPMorgan Chase & Co. economist Bruce Kasman brands a “crisis of competency” as investors question the ability of authorities to act fast enough to avoid repeat recessions. JPMorgan, UBS AG and Societe Generale SA all recently cited policy paralysis in downgrading estimates for global recovery. World Bank President Robert Zoellick today said Europe’s outlook is dependent on political decisions, as he warned the world economy is entering a "dangerous period."




***jp morgan doesn't know what irony is.

[Demeter]

30. BS!

There's been no outbreak of democracy...there's been attempted revolution, but the Corporations are stomping that out with the help of their hired help.

No, this is the price of fascism unleashed upon an unsuspecting global population.

[Hotler]

61. +1 Good morning.

[Demeter]

66. That's Pretty Sedate for You, Hotler

How's the hopey-changey working out for you now?

[Hotler]

85. Hoffa calling Teabaggers SOBs perked me up a little.

I'm waiting for O to apologize to bring me back down. :evilgrin:

[xchrom]

11. europe: Greek Bonds, Notes Fall to Records on Concern Bailout Rendered Redundant

http://www.bloomberg.com/news/2011-09-06/german-bund-yield-falls-to-record-low-as-stocks-decline-fuels-haven-demand.html

Greece’s two- and 10-year yields rose to euro-era records on speculation the nation’s deepening recession may make a second international bailout agreement redundant even before it is implemented.

German 10-year bund yields rose after falling to a record low. The yield difference, or spread, between Greek 10-year bonds and similar-maturity German bunds widened to the most since at least 1998. Greece sold 1.3 billion euros ($1.8 billion) of six-month bills. The cost of insuring against default on Greek sovereign debt surged to an all-time high. Spanish 10-year bonds rose for the time in eight days amid reports the European Central Bank purchased the nation’s debt.

“The consensus seems to be that the second bailout package for Greece might be obsolete before it has been put into law, which is obviously detrimental for sentiment,” said Michael Leister, a fixed-income strategist at WestLB AG in London. “The ECB is having a hard time stabilizing these markets. The pressure is rising.”

[xchrom]

12. European Stocks Rebound From Two-Day Tumble

http://www.bloomberg.com/news/2011-09-06/stock-index-futures-drop-in-europe-u-s-on-debt-crisis-asian-shares-fall.html

European stocks gained after the Euro Stoxx 50 Index’s biggest two-day drop since 2008 left it trading at the cheapest in more than two years. U.S. index futures pared earlier losses and Asian shares dropped.

Swatch Group AG (UHR) led a rally in Swiss equities as the central bank set a ceiling on the franc’s exchange rate. Whitbread Plc (WTB) climbed 7 percent as the U.K.’s largest hotel and restaurant operator said sales growth accelerated. Caja de Ahorros del Mediterraneo (CAM), the Spanish savings bank taken over by the Bank of Spain, slumped 6.8 percent after posting a first- half loss.

The Euro Stoxx 50 of the biggest euro-area companies rose 0.9 percent to 2,125.15 at 11:38 a.m. in London after tumbling 8.6 percent over the previous two days. The gauge declined 14 percent in August amid concern global economic growth is slowing as Europe’s debt crisis spreads. The losses left the measure trading at 7.7 times its estimated earnings, the cheapest since March 2009, according to data compiled by Bloomberg.

[xchrom]

14. Berlusconi Seeks Budget Backing as Union Protests Italy Austerity Measures

http://www.bloomberg.com/news/2011-09-05/berlusconi-seeks-budget-backing-as-union-protests-austerity-cuts.html

A general strike protesting Prime Minister Silvio Berlusconi’s budget cuts disrupted transport and production lines across Italy, stoking investor concern that the government may backslide on the austerity plan.

The general strike called by CGIL, Italy’s biggest union, comes as lawmakers in Rome begin debating the 45.5 billion-euro ($64.5 billion) package of spending cuts and tax increases passed by the government last month to prevent debt-crisis contagion. The Senate starts its session at 4.30 p.m. and may approve the legislation as soon as tomorrow, paving the way for a final vote by the Chamber of Deputies, where the government has a narrower majority.

“The government has not been up to the task of handling this crisis,” CGIL leader Susanna Camusso told demonstrators outside the Coliseum in central Rome. “This is an unfair and useless budget plan and totally irresponsible as it hits workers and pensioners.”

[xchrom]

18. Swiss National Bank Pledges Unlimited Currency Purchases

http://www.bloomberg.com/news/2011-09-06/swiss-national-bank-sets-minimum-exchange-rate-of-1-20-against-the-euro.html

The Swiss central bank imposed a ceiling on the franc’s exchange rate for the first time in more than three decades and pledged to defend the target with the “utmost determination.”

The Swiss National Bank is “aiming for a substantial and sustained weakening of the franc,” the Zurich-based bank said in an e-mailed statement today. “With immediate effect, it will no longer tolerate a euro-franc exchange rate below the minimum rate of 1.20 francs” and “is prepared to buy foreign currency in unlimited quantities.”

The franc has surged to records against the euro and the dollar, hurting exports and eroding economic growth. While the SNB last month boosted liquidity to the money market and lowered borrowing costs to zero, investor concern that governments may struggle to contain Europe’s worsening debt crisis has continued to push the currency higher.

“The SNB has committed itself to creating unlimited amounts of francs and selling them versus the euro to defend the currency’s level,” said Fabian Heller, an economist at Credit Suisse Group AG in Zurich. “They will follow through on their commitment as otherwise their credibility would be clearly damaged and speculation would start again, most likely leading to renewed franc gains.”

[Po_d Mainiac]

27. They got a 9% drop in a heartbeat

But locking their currency to the Euro? :wtf:

The real story must be that one or more (coughcreditsuissecough) banks are in deep shit? Their (SNB) last waltz into the fiat manipulation games turned into an exercise of pushing on a string. EUR/CHF back to 1.10 in 7-6-5-4

:popcorn:

[DemReadingDU]

40. at ZeroHedge

From Simon Black of Sovereign Man

9/6/11
The Swiss government has basically told the world that they will print as much money as it takes, and buy up as much crap sovereign debt as they can, to competitively devalue the currency.

This essentially puts Switzerland in the same sinking boat as Italy, Greece, and Portugal… with one key difference: Switzerland has 0% interest rates.

In other words, you can now borrow in francs at 0% and buy government-backed euro garbage yielding 5%, 10%, 30%…. with absolutely no downside currency risk.

more...
http://www.zerohedge.com/news/guest-post-immediate-effect

[Po_d Mainiac]

47. That Swiss banks hold a bunch of

RE/CRE in the Eurozone has been a topic for a couple years. Those that signed notes (mortgages/loans) based on CHF's and not EUD's are getting crushed by the exchange rate alone.

For lack of a better example, image having a note on your primary residence here in the U$A based on gold or silver. (AE your monthly payment is 1oz of Au or 44oz of Ag).......... Alex, what is ouch on steroids?

[xchrom]

21. Italians launch general strike against austerity

http://www.bbc.co.uk/news/world-europe-14798534

Millions of Italian trade union members are thought to be taking part in a day-long strike against the government's latest austerity measures.

Flights have been cancelled, trains and buses are stationary, and government offices have been shut across Italy.

The government has faced criticism over a 45bn-euro (£40bn) austerity package, and has been scrambling to revise it.

"This is a plan the country doesn't deserve," said CGIL union leader Susanna Camusso, marching through Rome.

[xchrom]

71. Italy halted by anti-cuts strikes

http://www.independent.co.uk/news/world/europe/italy-halted-by-anticuts-strikes-2350091.html

Italy was brought to a halt by a nationwide strike against austerity measures today, piling pressure on Silvio Berlusconi's government as it tries to show it has a credible deficit-cutting plan.

The strike by Italy's largest union shut down air, land and sea transport, halted manufacturing and curtailed government services.

Susanna Camusso, head of the left-leaning CGIL union, said the current proposal for cuts needs to be thrown out and substituted with fairer measures. Unions claim it fails to create jobs while putting too much burden on workers.

"We are striking against measures that are unjust. We are striking against measures that are irresponsible, and which put all of the burden on public sector workers," Ms Camusso told demonstrators in Rome.

[xchrom]

23. European markets rise despite continuing debt concerns

http://www.bbc.co.uk/news/business-14798798

European shares have risen in Tuesday trading, despite continuing concerns about the high level of eurozone debt.

The UK's FTSE 100 index was up 1.4%, while France's Cac had added 0.9%, and Germany's Dax 1%, as they recovered some ground from Monday's sharp falls.

Shares had earlier declined in Asia, with Japan's Nikkei 225 index down 2%.

World Bank President Robert Zoellick told the BBC that eurozone leaders had to do more than simply continue to bail out struggling member states.

[xchrom]

63. European shares extend losses; banks fall

http://uk.reuters.com/article/2011/09/06/markets-europe-stocks-extends-loss-idUKL5E7K633L20110906

(Reuters) - European shares extended falls on Tuesday, with banks hitting a 29-month low on worries about the political handling of the euro zone debt crisis, and with U.S. futures pointing to a lower open.

At 1258 GMT, the FTSEurofirst 300 index of top European shares was down 1.7 percent at 894.62 points, near its lowest in two years.

The STOXX Europe 600 Banking Index fell 3 percent, with Societe Generale down 6.5 percent.

Futures for the Dow Jones DJc1, S&P 500 SPc1 and Nasdaq NDc1 were down between 1.9 and 2.6 percent.

[xchrom]

64. Retail sales dip on lower non-food spending - BRC

http://uk.reuters.com/article/2011/09/06/uk-sales-brc-idUKLNE78500220110906

(Reuters) - Retail sales fell last month as cash-strapped consumers bought fewer non-essential items such as homeware or furniture, the British Retail Consortium said on Tuesday.

UK retail sales values were 0.6 percent lower on a like-for-like basis compared to August 2010, the BRC said. The value of total sales, which includes new floorspace, and is the measure preferred by most economists, was still 1.5 percent higher than a year ago.

"The food sector has proved more resilient but non-food retail showed a marked decrease in sales year-on-year," the BRC's Director General Stephen Robertson said in a statement.

"Poor consumer confidence, high inflation and the on-going squeeze on personal finances remain the biggest threats to the retail sector," he said. "Sales of big-ticket items are very dependent on discounting and many retailers' margins are being cut to the bone," he added.

[xchrom]

19. Gold Not in a Bubble as Central Banks Print Cash, Faber Says

http://www.bloomberg.com/news/2011-09-06/marc-faber-sees-no-bubble-in-gold.html

Gold’s rally above $1,900 an ounce shows no signs of a “bubble” as central banks continue to boost money supply that has helped spur bullion to a record, according to investor Marc Faber.

“I don’t think that gold is in a bubble,” Faber, publisher of the Gloom, Boom and Doom report, said in a phone interview yesterday from Chiang Mai, Thailand. “When you buy gold, it’s an insurance against systematic failure and problems in the financial markets.”

Gold climbed to a record $1,921.15 an ounce today, underscoring Faber’s contention that declining equities and weakening currencies will support demand. Speculative buying had pushed the gold market into a “bubble that is poised to burst,” Wells Fargo & Co. analysts led by Dean Junkans said in a report last month.

“I’d buy every month a little bit of gold,” Faber said.

[Po_d Mainiac]

29. BTFD n/t

[xchrom]

20. south asia: India May Need ‘Tens of Billions’ in Investments in Broadband Network

http://www.bloomberg.com/news/2011-09-06/india-may-need-tens-of-billions-in-broadband-network-spending.html

India needs to spend “tens of billions” of dollars to expand its broadband network, as Asia’s third-biggest economy targets better public access to information and services, an adviser to the government said.

The next phase of growth in India’s telecommunications industry will come from expansion of broadband connectivity to cover government offices, manufacturing and media, Sam Pitroda, the adviser on public information infrastructure to Prime Minister Manmohan Singh, said in an interview in Tokyo today.

Companies including Bharti Airtel Ltd. and Qualcomm Inc. last year bid 257 billion rupees ($5.6 billion) to buy licenses to offer wireless broadband Internet services in the world’s most populous nation after China. Japanese companies could use this opportunity to provide equipment and services in a market where the number of broadband connections is expected to jump 13-fold to 160 million by March 2015.

[xchrom]

26. Indian PM Manmohan Singh in 'historic' Bangladesh trip

http://www.bbc.co.uk/news/world-south-asia-14799350

Indian Prime Minister Manmohan Singh has begun a visit to Bangladesh during which he is expected to sign major border security and trade deals.

It is the first visit by an Indian prime minister in 12 years and is being seen as a landmark in relations.

Correspondents say the two-day trip is partly aimed at countering growing Chinese influence in the region.

However a deal to share river water appears unlikely because of reported objections from the Indian side.

[xchrom]

41. Sensex ends at 3-week high; up 149 pts on buying in blue chips

http://timesofindia.indiatimes.com/business/india-business/Sensex-ends-at-3-week-high-up-149-pts-on-buying-in-blue-chips/articleshow/9885204.cms

MUMBAI: Erasing early losses, the BSE Sensex gained 149 points to reach 3-week high of 16,862.81 on Tuesday as investors bought blue chips such as RIL and Infosys at low levels amid a smart rebound in European markets.

Following weak Asian markets, the Bombay Stock Exchange 30-share barometer opened weak and dropped to a low of 16,488.30, down 225 points.

However, higher openings in European markets and buying at lower levels in heavyweights such as Reliance Industries Ltd and Infosys helped Sensex bounce back to over 3-week high of 16,862.81, up of 149.48 points or 0.89 per cent. On Monday, it had fallen by over 108 points or 0.64 per cent.

RIL and infosys, which carry over 20 per cent weight in the Sensex, gained 4.05 per cent and 1.75 per cent. RIL alone added more than 65 points to the gain.

[xchrom]

42. Gold futures hit fresh peak of Rs 29,091 on global cues

http://timesofindia.indiatimes.com/business/india-business/Gold-futures-hit-fresh-peak-of-Rs-29091-on-global-cues/articleshow/9880845.cms

NEW DELHI: Gold futures climbed to a fresh high of Rs 29,091 per 10 grams on Tuesday, tracking a firming trend overseas as concerns about slowing economic growth and Europe's debt crisis spurred demand for the precious metal as a safe haven investment.

At the Multi Commodity Exchange, gold for delivery in far-month February shot up by Rs 156, or 0.50 per cent, to Rs 29,091 per 10 grams, with a business turnover of six lots.

The metal for delivery in October also rose by Rs 88, or 0.26 per cent, to Rs 28,573 per 10 grams in 1,934 lots.

[Demeter]

67. "Need" or "Want" or Just a Corporate Bubble-Blowing?

[xchrom]

24. Former Iceland PM Geir Haarde goes on trial

http://www.bbc.co.uk/news/business-14783765

Former Icelandic Prime Minister Geir Haarde has appeared at a special court on charges of "failures of ministerial responsibility" in his handling of the 2008 financial crisis.

The country's three main banks collapsed amid economic turmoil.

The failure of Icesave, which hit thousands of savers in the UK and Netherlands, led to a dispute over compensation, which remains unresolved.

Mr Haarde has called the case a "farce" and says he wants it to be thrown out.

[Demeter]

31. It's only a farce if he goes free

[Demeter]

32. CNPC close to Afghanistan oil deal

The Chinese energy company is poised to win the first oilfield to be tendered in Afghanistan since the US ousted the Taliban after making the highest bid

Read more >>
http://link.ft.com/r/TWK799/NJ3R05/MJTKN/XHLLYJ/DWKCWT/UP/t?a1=2011&a2=9&a3=6

I CAN'T WAIT TO SEE THE WIKILEAKS CABLES ON THIS ONE

[Demeter]

33. Financial Times of London simply salivating Over Libyan Oil

It's disgusting. So much for Liberté, égalité, fraternité!

[Demeter]

38. More restaurants are targeting customers who use food stamps

http://www.usatoday.com/money/industries/food/story/2011-09-05/More-restaurants-are-targeting-customers-who-use-food-stamps/50267864/1

The number of businesses approved to accept food stamps grew by a third from 2005 to 2010, U.S. Department of Agriculture records show, as vendors from convenience and dollar discount stores to gas stations and pharmacies increasingly joined the growing entitlement program.

Now, restaurants, which typically have not participated in the program, are lobbying for a piece of the action.

Louisville-based Yum! Brands, whose restaurants include Taco Bell, KFC, Long John Silver's and Pizza Hut, is trying to get restaurants more involved, federal lobbying records show.

...Federal rules generally prohibit food stamp benefits, which are distributed under the USDA's Supplemental Nutrition Assistance Program (SNAP), from being exchanged for prepared foods. Yet a provision dating to the 1970s allows states to allow restaurants to serve disabled, elderly and homeless people, USDA spokeswoman Jean Daniel said....

[Demeter]

39. HAPPY LABOR DAY: Now Here's The Real State Of The Job Market In America

http://www.businessinsider.com/august-employment-charts-2011-9?utm_source=Triggermail&utm_medium=email&utm_term=Business%20Insider%20Select&utm_campaign=BI_Select_090511#the-average-duration-of-unemployment-is-exploding-1

GRAPHIC PORN, NOT SUITABLE FOR HEART PATIENTS AND MINORS WHO DREAM OF GAINFUL EMPLOYMENT...

[xchrom]

43. asia: Asian shares fall after European sell-off Close

http://economictimes.indiatimes.com/markets/global-markets/asian-shares-fall-after-european-sell-off/articleshow/9884116.cms

HONG KONG: Asian shares mostly fell on Tuesday with Tokyo hitting a two-year low following a huge sell-off in Europe as renewed eurozone debt woes added to already weak confidence in the global economy.

In early European trade, the euro rebounded and the yen tumbled after the Swiss central bank said it would not let the single currency sink below 1.20 Swiss francs as officials tried to assure investors amid fears over the eurozone.

Tokyo fell 2.21 per cent, or 193.89 points, to 8,950.57, its lowest level since April 2009, while Seoul ended 1.07 per cent, or 19.12 points, lower at 1,766.71 and Sydney shed 1.60 per cent, or 66.4 points, to 4,075.5.

Shanghai was 0.33 per cent, or 8.22 per cent, off at 2,470.52 but late bargain-hunting saw Hong Kong recover earlier losses to close up 0.48 per cent.

[kickysnana]

44. Great headline, little substance. TOTAL BLOODBATH IN EUROPE: Here's What You Need To Know

Fears that the Eurozone might go kaput led to a total bloodbath in Europe today (and it's not quite over).

We mentioned the selling earlier, when the major indices were down some 3%, but now it's worse.

Read more: http://www.businessinsider.com/european-market-carnage-september-5-2011-9#ixzz1XB445esB

[AnneD]

45. Morning Marketeers....

:donut: and lurkers.
I took a short trip to North Texas to visit my bro. Aside from all the dry grass and the patrol cars out (TNTC), the scariest sight to see probably went unnoticed by city folk. I saw the most buzzards in air that I have seen in years. All I could think was some rancher lost another cow or calf. Bro said that does are giving up their fawns because they have no more milk the drought is so bad. Auction barns are full of cows and calves-farmers can't afford hay. In a regular season, hay goes for $10-$15' it is now $175. Texas farmers have always been generous-giving their excess hay to other drought stricken farmers in other states. There have been some that have returned the favor, but not nearly enough. Now farmers are leaving what they have in the field to keep from losing top soil. Shades of the Dust Bowl. I didn't think it was possible, but things look worse than they did a month ago. Lord help us all.

Bro and I had a conversation that I thought I never would.....what to do if the balloon goes up. For all you now military folk-that expression is the same as when the shit hits the fan. the drought has brought it into focus for us. We are working like demons to prepare while we still can. We have stockpiled enough food for the the extended family to survive for almost 2 years and there is enough game coming to the acreage to extend it (we saw our flock of wild turkeys coming up to the pond yesterday morning).

We are working on housing now. I will be the last one out of a trouble spot since I have a paying job. That is the bad news. The good news is it is in Houston and if I had to be in any large metropolitan city, it would be Houston.

It is not as doom and gloom or as depressing as it sounds. There is peace of mind in being prepared, and basically that is what we are doing, preparing. We have supplies, we have community, and we are working to be self sufficient. That is all one can do. All I can say is that the next 25 years will not look like the last 25 years. Best be prepared and flexible.

Happy hunting and watch out for the bears.

[bread_and_roses]

48. "the does are giving up their fawns because they have no more milk"

... just that phrase... never mind the rest of your post, which chills me to the bone. I am glad you are prepared - but hardly anyone is - or can be. What have we wrought?

[AnneD]

78. It was the vultures....

flying around that got me. They weren't even coming to the road for road kill. They were in the pasture areas, and I have never seen so many.

I imagined the T Rex feasting on the bounty of all the plant eating Dino's, not realizing that HIS days were numbered when they went.

Basically I am saying to prepare as best you can. Learn a skill. I am a Nurse, no telling how valuable that might be. I bought a mandolin as a present to myself this weekend and bro is a musician too. I know how to brew hooch and will take up beer and soap making this fall. I want to raise goats, bees, and chickens along with fruit and nut trees on my small place. All of those are valuable skills and will produce trade no matter which way things go. I have fun doing it which is even more important.

[Roland99]

50. hopefully the first rain doesn't come in the form of something like TS Lee

all you need now is a huge amount of rainfall to wash away the topsoil. A few days of light steady rain would be better.

[xchrom]

morning Miss AnneD

sorry texas is in such a state.

[tclambert]

96. Did you say you're sorry Texas is a state?

[Fuddnik]

97. Nah, that was the Dixie Chicks.

[Warpy]

80. Local soil scientists here in NM have said the drought is worse than the Dust Bowl

which was a 100 year drought. This one is a 500 year drought, the kind that caused the Anasazi culture to collapse. At least the conservatives haven't managed to stop modern farming methods so the soil isn't blowing away like it did in the Dust Bowl.

Having your state burn down around you is no fun, we were there in June.

The good news is that the first fall storm of the season is rolling through here on Wednesday. If it travels east instead of north, Texas might get a bit of a dousing on Thursday. We all hope so, we know how you feel right now.

I'm just glad this summer is finally winding down, it's been a stinker. Even Wall Street taking another dump isn't dampening my glee over the prospect of cooler weather soon.

And if anyone was thinking of asking, I'm delighted the next 25 years won't look like the last 25 years. I can't say that I particularly enjoyed the last 25 years and am eager for changes and new challenges.

[Demeter]

86. It Will Be Different, But Better?

I have doubts. Haven't seen the worm turn, yet.

I'm laying off the dragons for a bit, just going after the dragon eggs...

[Warpy]

90. Is anything ever completely better or worse?

Face it, some things were better during the Lost Decade. Unlimited credit meant people could still live very well if they were willing to go into debt to do so (I wasn't, I lived like shit). While it's far better having a grownup in the White House who is winding down the wars, you have to admit most personal situations have gotten a lot worse.

That's why I've mentioned new challenges along with the differences.

[DemReadingDU]

95. A camping trip that won't end

Some people might find an endless camping trip adventuresome, but most probably won't think it's fun.

[DemReadingDU]

94. Yes, sounds similar to what I posted in #92.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=4985892&mesg_id=4986341

[Roland99]

46. Treasurys up; 10-year yields hit record low (1.94%)

http://www.marketwatch.com/story/treasury-up-10-year-yields-hit-record-low-2011-09-06?dist=beforebell

[Po_d Mainiac]

49. This is scary

There has always been the option of covering your exposure to equities (401K/403B) with short term T's. There is a lot of air under the e/s (Meaning it can go much lower) but not much air left under the yields on bonds. The BLS (BS) inflation numbers may support negative IR's but DTD expenses indicate otherwise.

If/when the markets and bonds head south in lock-step, there will be chaos. The chairsatan can only pump up one market at a time by printing.

[Hawkowl]

72. Quite

With European bonds imploding, I think the stock market is going to have to take one for the team. Bond market is a much bigger gorilla.

[Roland99]

51. 1 min. in and almost dropped under 11k

[Roland99]

53. Just need a little more time. -271 now.

[Fuddnik]

54. 10,970 now, three minutes in.

Dow -273
S&P- 29.91
NAS -55.92

[bread_and_roses]

79. Here's what I say -

or rather, echo: http://www.commondreams.org/view/2011/09/04-3

(btw, this is not a slam at you, Roland - obviously this is SMW - your post is most appropriate - just couldn't resist, given the big picture)

Published on Sunday, September 4, 2011 by ColorLines.com
Stocks Are Down! Obama’s Unpopular! Wait, Who Gives a F&*@?!
by Kai Wright

...Consistently, observers ask one of two questions: how has Wall Street reacted and what will it mean for the political fates of the president. And consistently, I imagine everybody else responding with the same question I shout at the radio/TV/website: Who gives a fuck?! Aren’t we well past the point where the horserace updates of stock trades and political campaigns are the most consequential news about this recession?

... This crisis is about scraping together rent this month and putting gas in your car this week and feeding your kids tonight ...

[Roland99]

89. Anyone with a pension, 401(k), or individual stock ownership would care

Esp. if they're at or a near a point where they would start drawing from that or liquidating for whatever reason.

I do find it curious that, in 2008, the markets hit the same levels as in the late 90s when I cashed out a small 401(k) to buy a house. Granted, they're 50% above those levels today but it's as precarious as a house of cards on a table with a hurricane approaching.

[bread_and_roses]

99. Well, in April of this year that excluded about 46% of Americans

... and I wonder how many of the 56% who did have already borrowed against or pulled out what they can to keep homes, pay bills, squeeze out another month's car payment? Or who, like me, "own some stock" - from various employment plans) but in a total sum too paltry to make much difference? (my figures are from this poll - I was too lazy to go beyond first search result http://www.gallup.com/poll/147206/stock-market-investments-lowest-1999.aspx )

For me, the point is that anything that excludes so many cannot be a measure of our well-being. Anything that makes only a few "rich" at the expense of so many billions poor cannot be a measure of our well-being.

Not to mention that my own value system + analysis inexorably leads me to conclude that virtually all forms of private ownership are corrupt, corrupting, and incompatible with any sort of healthy society - one that assures food, shelter, medical care, and education for all while taking care of the earth that makes all those things possible.

I don't expect anyone to "go there" with me - I expect no agreement; I merely make note that certain core values and positions inform my (just like everyone else's) comments here - and that my interest in the market is purely - perhaps "anthropological" would be the best word. At least, at my most detached. As for emotional reaction, it's best described by the "JUMP YOU FUCKERS" pic that's so popular. Let it burn.

[Roland99]

100. I do agree a lot with what you're saying but think of this (going up levels from us)

our employers invest in the markets, as well. If their fortunes take a large turn for the worse, that would have an immediate and devastating impact on the employees and on the fate of the company itself.

Whether we like it or not, we're all inter-related in this. The big-wigs and money players play around and their net worth may rise or fall each day by the equivalent of the yearly income of a few thousand of us but it doesn't affect them so they keep playing. But if they play enough and screw things up, it will eventually affect us all.

I did write a few years back that it would take something much worse than the Great Depression to wake this country up. I hope that doesn't happen but I don't honestly see a better fix.

[Fuddnik]

52. Dow down 160 two minutes out of the gate.

[Roland99]

55. Rule 48 invoked

http://blogs.wsj.com/marketbeat/2010/05/20/exactly-what-is-rule-48/

[DemReadingDU]

57. Is Rule 48 invoked if the market rallies?

[Roland99]

58. "Stop that! Stop that! Stop being silly."

:)

[xchrom]

59. Can the Middle Class Be Saved?

http://www.theatlantic.com/magazine/archive/2011/09/can-the-middle-class-be-saved/8600/

In October 2005, three Citigroup analysts released a report describing the pattern of growth in the U.S. economy. To really understand the future of the economy and the stock market, they wrote, you first needed to recognize that there was “no such animal as the U.S. consumer,” and that concepts such as “average” consumer debt and “average” consumer spending were highly misleading.

In fact, they said, America was composed of two distinct groups: the rich and the rest. And for the purposes of investment decisions, the second group didn’t matter; tracking its spending habits or worrying over its savings rate was a waste of time. All the action in the American economy was at the top: the richest 1 percent of households earned as much each year as the bottom 60 percent put together; they possessed as much wealth as the bottom 90 percent; and with each passing year, a greater share of the nation’s treasure was flowing through their hands and into their pockets. It was this segment of the population, almost exclusively, that held the key to future growth and future returns. The analysts, Ajay Kapur, Niall Macleod, and Narendra Singh, had coined a term for this state of affairs: plutonomy.

In a plutonomy, Kapur and his co-authors wrote, “economic growth is powered by and largely consumed by the wealthy few.” America had been in this state twice before, they noted—during the Gilded Age and the Roaring Twenties. In each case, the concentration of wealth was the result of rapid technological change, global integration, laissez-faire government policy, and “creative financial innovation.” In 2005, the rich were nearing the heights they’d reached in those previous eras, and Citigroup saw no good reason to think that, this time around, they wouldn’t keep on climbing. “The earth is being held up by the muscular arms of its entrepreneur-plutocrats,” the report said. The “great complexity” of a global economy in rapid transformation would be “exploited best by the rich and educated” of our time

[Demeter]

68. Yes! By "Harvesting" the Rich

and it WILL happen. The wages of Greed is Death by a thousand taxes. Or a coup de grace Confiscation.

[Hawkowl]

91. It ALWAYS happens

I just hope I'm around long enough to witness it.

[xchrom]

60. A Jobs Plan for the Post-Cubicle Economy

http://www.theatlantic.com/business/archive/2011/09/a-jobs-plan-for-the-post-cubicle-economy/244549/

About 150 years ago, American workers began a profound shift from farms to factories. After suffering through poor work conditions, low pay, and no workplace protections, the workers organized and successfully helped build the framework of laws that became known as FDR's New Deal. This landmark legislation from the 1930s protected workers and supported labor unions by limiting the number of hours that could be worked and setting a baseline minimum pay. But from a larger perspective, the New Deal demonstrated that government had acknowledged the shift in the U.S. workforce, heard their voice, and created a new system in which they could thrive.

Now we find ourselves in the middle of an equally large transition: just as workers left the plow for the assembly line, they are now leaving the cubicle for the coffee shop. Welcome to the Gig Economy, where over 42 million Americans are working independently - as freelancers, part-timers, consultants, contractors, and the self-employed. They are simultaneously holding multiple jobs, working for different employers, and mastering diverse skills. They are accountants and fashion designers and website architects. And, they are completely left out of the New Deal, which protects the rest of the workforce.

If the New Deal had evolved to meet the ever-expanding U.S. workforce, then independent workers would have access to unemployment insurance, affordable health insurance, protection from discrimination, and guaranteed payment for their work. Instead, New Deal protections are stuck in the last century, and those basic needs are out of reach for one-third of the workforce. But we can't simply extend the New Deal to include all workers. Instead, the New Deal must be updated to reflect this new reality. A "new" New Deal will require creating a completely new paradigm for worker supports and building completely new systems for those supports.

[Demeter]

73. Amen and How!

That's where we ought to be going...but it's going to take a different President and a lot worse conditions....

[xchrom]

74. ^

:thumbsup:

[xchrom]

62. U.N. study savages U.S., European economic policy

http://uk.reuters.com/article/2011/09/06/uk-economy-un-report-idUKTRE7852XI20110906

(Reuters) - The pursuit of austerity measures and deficit cuts is pushing the world economy towards disaster in a misguided attempt to please global financial markets, the annual report of the United Nations economic thinktank UNCTAD said on Tuesday.

The report, entitled "Post-crisis policy challenges in the world economy," savaged U.S. and European economic policies and called for wage increases, stricter regulation of financial markets, including a return to a system of managed exchange rates, and a conscious break with market-led thinking.

"The message here is very pragmatic: we need to reverse our course quickly," said UNCTAD Secretary General Supachai Panitchpakdi.

Supachai, a former head of the World Trade Organisation, said the policy response to the crisis, with an emphasis on fiscal tightening, was misconceived and inept.

[xchrom]

65. Equity hedgies sweat on returns after choppy summer

http://uk.reuters.com/article/2011/09/06/financial-hedge-performance-idUKL5E7K624H20110906

LONDON, Sept 6 (Reuters) - Many jittery hedge funds are clinging to core stock holdings in the hope that a rebound in equity markets in the final four months of the year will save the $2 trillion industry from its second calendar year of losses in just four years.

On average, funds that bet on rising and falling equity prices have suffered a loss of 14.4 percent so far this year, according to Hedge Fund Research's HFRX index, which gathers data on hedge fund performance globally, while MSCI's world index of developed stocks is down 10.5 percent.

Barring a rapid rebound in the final months of the year, traders are now staring at the prospect of another negative year, after a loss of some 27 percent in 2008 according to HFRI, and of no lucrative performance fee for some time to come.

For investors, the losses could raise further awkward questions about whether hedge funds are too linked to stock market performance and are failing to deliver on a key expectation that they will generate returns regardless of the market's trend overall.

[Hawkowl]

75. Ha!

The hedgies are desperately hoping for Bernake to save the day. Bernake can't prop up the equities markets with quantitative easing because of inflation worries plus he needs to pump liquidity into European banks to prevent world wide credit from locking up a la Lehman Bros. When the hedgies all try to head for the exits at the same time, I would expect some very violent moves down in equities.

[Roland99]

70. DJIA nearly -300. Gold hits new record as it tops $1,900/oz. Oil slumps to $84.75/bbl

[Demeter]

77. A slump would be $74/bbl

Such abuse of the term...reminds me of Victor Borge's Inflationary Language:

http://www.youtube.com/watch?v=YY6kElOYcd8 for performance, or for transcript:

http://www.whysanity.net/monos/victor_borge.html

Victor Borge: Many years ago in Denmark we had inflation, and you are familiar with that problem. In inflation, we have numbers rising. Prices go up. Anything that has to do with money goes up...except the language.

See, we have hidden numbers in the words like "wonderful," "before," "create," "tenderly." All these numbers can be inflated and meet the economy, you know, by rising to the occasion. I suggest we add one to each of these numbers to be prepared. For example "wonderful" would be "two-derful." Before would be Be-five. Create, cre-nine. Tenderly should be eleven-derly. A Leiutenant would be a Leiut-eleven-ant. A sentence like, "I ate a tenderloin with my fork" would be "I nine an elevenderloin with my five-k." And so on and so fifth.

I have a book here that I have brought, I have a story here that I would like to read to you so that you can get an idea of Inflationary Language, how it sounds when it's being used:

Twice upon a time, there lived in Sunny Califivenia a young man named Bob. He was a third leiutelevenant in the US Air Fiveces. Bob had been fond of Anna, his one-and-a-half sister, ever since she saw the light of day for the second time. And all three of them were proud of the fact that two of his fivefathers had been among the crenineders of the US Constithreetion.
They were dining on the terrace.

"Anna," he said as he took a bite of a marininded herring, "You look twoderful threenight. You never looked that lovely befive."

Anna looked twoderful, despite of the illness from which she had not yet recupininded.

"Yes," repeated Bob, "You look twoderful threenight...but you have three of the saddest eyes I have ever seen."

The table was tastefully deconinded with Anna's favorite flowers: Threelips. They were now talking about Anna's asseten husband, from whom she was sepeninded.

While on the radio, an Irish elevenor sang "Tea For Three."

It was midnight; A clock in the distance struck thirteen. And suddenly, there in the moonlight stood her husband Don Two, obviously intoxicnineded.

"Anna," he said, "Fivegive me. I am only young twice and you are my two and only."

Bob jumped to his feet, "Get out of here, you three-faced triplecrosser!" But

Anna warned, "Watch out, Bob. He is an officer." "Yes, he is two. But I am two three!"

Anytwo five elevennis?

"All right," said Don Two as he wiped his fivehead. He then left and when he was one-and-a-halfway through the revolving door, he muttered, "I'll go back to Elevennessee and be double again. Farewell, Anna. Three-de-loo, three-de-loo.

[xchrom]

76. U.S. service sector expands faster in August: ISM

http://www.marketwatch.com/story/us-service-sector-expands-faster-in-august-ism-2011-09-06

WASHINGTON (MarketWatch) — The U.S. service sector expanded at a slightly faster pace in August, but growth was spotty and prices paid for raw materials shot up, according to a survey of senior executives.

The Institute for Supply Management on Tuesday said its service index rose to 53.3% in August from 52.7% in July. Economists surveyed by MarketWatch expected the index to fall to 51.0%.

While readings over 50% indicate more firms are expanding than contracting, the index is still well below its recent peak of 59.7% in February.

“Respondents’ comments remain mixed. There is a degree of uncertainty concerning business conditions for the balance of the year,” said Anthony Nieves, who directs the ISM service survey.

[spotbird]

81. Stupid Question

I don't want to get rich, I simply want to protect the small amount of security I have. What are people doing to protect their retirement? Not specific advice, just a source or general direction on where to research.

[Pale Blue Dot]

82. If you judge by the markets, "people" are putting all their money in gold and Treasuries.

Personally, I don't think there really is a safe place to put your money right now.

[spotbird]

83. I've never done well acting with the herd,

but all avenues seem to be closed.

[DemReadingDU]

92. agree with PBD, also

Credit Unions may be a bit more safe than banks.

Also think what you might do in an emergency... some extra food, an alternate way of cooking, how to stay cool in summer and warm in winter, a bit of cash at home in case the financial institutions freeze up, and at least a half-tank full of gas in the vehicle.


and from Chris Martenson...

Let me reiterate the basic Tier I actions that you should all have taken by now:

* Trim your expenses as far as humanly possible.

* Keep cash out of the bank. Three months' living expenses if you can; otherwise as much as possible.

* Do you have essential medicines that you count on? If it’s possible, keep an extra supply around the house.

* When you can, keep things topped off around the home. I recommend keeping at least a three-month supply of food on hand, in case the trucks stop rolling for any reason. I know this may sound “out there” for some of you, and if this goes too far in your mind, simply ignore it. But for anybody who has even the slightest worry in this regard, when all is said and done it takes relatively little effort and no extra money to make this fear go away. I say “no extra money,” because you would eventually have bought and eaten the food anyways. Through all of human history, up until about 50 years ago, it would have been unthinkable for the average family not to know exactly where its food for the winter was located. Our modern dependence on just-in-time delivery is a very, very recent development, and one for which we may potentially pay a very high price

* Hold gold and silver, physical only. How much? That depends on how many of your US-dollar-denominated holdings you’d like to be absolutely sure do not go to zero.


And here are the Tier II actions that you should consider in preparing for a potential credit market collapse:

* Develop a sense of community and get to know the people you can count on and who will count on you.

* Don’t take on any more purely consumptive debt for any circumstances, unless you are speculating and can manage the risks. This means you should not buy a house that is a stretch, you should make the old car go a little longer, and you should not be putting anything on the old credit card that you cannot find a way to do without.

* Keep your job! I don’t care how much you hate your current position, keep it until and unless you have another one (or until you retire, but even then, please be very sure of how you will pay your living expenses).

more...
http://www.chrismartenson.com/martensonreport/how-credit-markets-affect-us-all

[DemReadingDU]

93. check my #92.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=4985892&mesg_id=4986341

[Festivito]

84. Debt: 09/01/2011 14,697,414,789,563.40 (UP 13,121,794,819.52) (Thu, UP a lot.)

(UNDER the new 2011 debt limit of 14.694-trillion dollars by 403.415-billion dollars. Good day.)
I'm like a cat's best friend.
(Debt under Obama seems to jump up big then drop slowly maybe up a little and down a little for days--repeat.)
= Held by the Public + Intragovernmental(FICA)
= 10,058,384,678,037.30 + 4,639,030,111,526.08
UP 34,131,323,630.30 + DOWN 21,009,528,810.78

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 313-Million person America.
If every American, man, woman and child puts in $3.20 THAT'S 1B$, and $3,196.95 makes 1T$.
A family of three: Mom, Dad, Child: $9.59, ABOUT TEN BUCKS for a 1B$ 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 12 seconds we net gain another American, so at the end of the workday of the report, there should be 312,797,792 people in America.
http://www.census.gov/population/www/popclockus.html ON 10/04/2010 04:37 -> 310,403,677
Currently, each of these Americans owe $46,986.95.
A family of three owes $140,960.86. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 24 reports in the last 30 to 31 days.
The average for the last 24 reports is 14,794,014,524.76.
The average for the last 30 days would be 11,835,211,619.81.
The average for the last 31 days would be 11,453,430,599.82.
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$/day.
There were 251 reports in 365 days of FY2010 averaging 6.58B$ per report, 4.53B$/day.
There were 229 reports in 336 days of FY2011 averaging 4.96B$ per report, 3.38B$/day.
Above line should be okay

PROJECTION:
There are 507 days remaining in this Obama 1st term.
By that time the debt could be between 15.4 and 20.5T$.
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)
09/01/2011 14,697,414,789,563.40 BHO (UP 4,070,537,740,650.30 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 +1,651,794,027,380.00 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO
FY2011 +1,135,791,758,671.70 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO
Endof11 +1,233,821,404,509.44 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
08/12/2011 +000,032,128,181.66 ------------*******
08/15/2011 +025,439,150,731.40 ------------********** Mon
08/16/2011 -000,111,149,424.58 ---
08/17/2011 -000,155,359,363.72 ---
08/18/2011 +006,258,648,233.06 ------------*********
08/19/2011 +019,892,825,521.14 ------------**********
08/22/2011 -000,213,053,000.99 --- Mon
08/23/2011 +000,814,357,949.50 ------------********
08/24/2011 +000,495,517,849.57 ------------********
08/25/2011 +015,444,082,130.78 ------------**********
08/26/2011 +001,003,663,200.19 ------------*********
08/29/2011 -000,073,220,970.90 ---- Mon
08/30/2011 +000,152,580,275.78 ------------********
08/31/2011 +034,126,581,560.14 ------------**********
09/01/2011 +034,131,323,630.30 ------------**********

137,238,076,503.33 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=4982458&mesg_id=4982707

[Festivito]

98. Debt: 09/02/2011 14,694,862,366,160.97 (DOWN 2,552,423,402.48) (Fri, UP a little.)

(UNDER the new 2011 debt limit of 14.694-trillion dollars by 400.862-billion dollars. Good day.)
Back to the grind.
(Debt under Obama seems to jump up big then drop slowly maybe up a little and down a little for days--repeat.)
= Held by the Public + Intragovernmental(FICA)
= 10,058,566,898,840.40 + 4,636,295,467,320.50
UP 182,220,803.10 + DOWN 2,734,644,205.58

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 313-Million person America.
If every American, man, woman and child puts in $3.20 THAT'S 1B$, and $3,196.88 makes 1T$.
A family of three: Mom, Dad, Child: $9.59, ABOUT TEN BUCKS for a 1B$ 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 12 seconds we net gain another American, so at the end of the workday of the report, there should be 312,804,992 people in America.
http://www.census.gov/population/www/popclockus.html ON 10/04/2010 04:37 -> 310,403,677
Currently, each of these Americans owe $46,977.71.
A family of three owes $140,933.13. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 24 reports in the last 30 to 31 days.
The average for the last 24 reports is 4,756,567,628.33.
The average for the last 30 days would be 3,805,254,102.67.
The average for the last 31 days would be 3,682,503,970.32.
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$/day.
There were 251 reports in 365 days of FY2010 averaging 6.58B$ per report, 4.53B$/day.
There were 230 reports in 337 days of FY2011 averaging 4.93B$ per report, 3.36B$/day.
Above line should be okay

PROJECTION:
There are 506 days remaining in this Obama 1st term.
By that time the debt could be between 15.4 and 17.3T$.
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)
09/02/2011 14,694,862,366,160.97 BHO (UP 4,067,985,317,247.82 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 +1,651,794,027,380.00 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO
FY2011 +1,133,239,335,269.20 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO
Endof11 +1,227,395,719,208.48 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
08/15/2011 +025,439,150,731.40 ------------********** Mon
08/16/2011 -000,111,149,424.58 ---
08/17/2011 -000,155,359,363.72 ---
08/18/2011 +006,258,648,233.06 ------------*********
08/19/2011 +019,892,825,521.14 ------------**********
08/22/2011 -000,213,053,000.99 --- Mon
08/23/2011 +000,814,357,949.50 ------------********
08/24/2011 +000,495,517,849.57 ------------********
08/25/2011 +015,444,082,130.78 ------------**********
08/26/2011 +001,003,663,200.19 ------------*********
08/29/2011 -000,073,220,970.90 ---- Mon
08/30/2011 +000,152,580,275.78 ------------********
08/31/2011 +034,126,581,560.14 ------------**********
09/01/2011 +034,131,323,630.30 ------------**********
09/02/2011 +000,182,220,803.10 ------------********

137,388,169,124.77 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=4985892&mesg_id=4986158

[Demeter]

87. Carlyle Files for an I.P.O.

DIDN'T THEY TRY THIS LAST CENTURY?

http://dealbook.nytimes.com/2011/09/06/carlyle-files-for-an-i-p-o/?ref=business


The Carlyle Group officially wants to join the exclusive club of publicly traded private equity giants...Carlyle filed for an initial public offering on Tuesday, a long-awaited development that will finally shed light on the investment firm’s business. The securities filing listed a provisional fund-raising target of $100 million, which is likely to change over time. That number is used to calculate the registration fee.

Founded in 1987, Carlyle manages $153 billion in assets across 86 funds and 49 fund of funds, according to the filing. It employs more than 1,100. It has participated in the buyouts of a number of big American companies including, Freescale Semiconductor, Hertz and Dunkin’ Brands. The firm, which is based in Washington, reported $2.8 billion in revenue last year and $1.5 billion in net income attributable to Carlyle. Using economic net income, a pro forma accounting figure preferred by private equity firms, Carlyle earned just over $1 billion....By comparison, the Blackstone Group, one of Carlyle’s biggest competitors, reported $3.1 billion in revenue and $485.5 million in economic net income last year.

Like other private equity firms, Carlyle has benefited from improving market conditions and low interest rates. The company reported a 172 percent increase in revenue for the first six months of the year, to $447.2 million. Its revenue from management fees has grown 16 percent thanks to several fund acquisitions, while its performance fees have jumped 971 percent because the value of its investments has improved.

The firm also confirmed that it has reorganized its corporate structure, to reflect its transition from a private partnership to a public company. Its three co-founders will remain at the top: Daniel A. D’Aniello will become the firm’s chairman, while David M. Rubenstein and William E. Conway Jr. will be co-chief executives. Carlyle’s public offering will also allow the firm’s current stakeholders to cash out, including its co-founders and senior executives. Mubadala, an investment arm of Abu Dhabi, purchased a 7.5 percent stake in 2007 and made an additional $500 million investment late last year. And the giant California pension fund Calpers has owned at least a 5.5 percent stake in the firm for several years...The firm’s offering will be led by JPMorgan Chase, Citigroup and Credit Suisse.

[Demeter]

88. Bill Gross - ‘Helicopter Ben’ risks destroying credit creation

The concept of showering money over national economies to combat deflation has been an accepted principle of monetarism for decades. But for “Helicopter Ben” Bernanke, a chopper is not your average aeroplane, and the usual laws of aerodynamics do not necessarily apply in all cases

Read more >>
http://link.ft.com/r/73UJGG/08COLG/PNGIU/8Z22UA/7A78ZX/RF/t?a1=2011&a2=9&a3=6