STOCK MARKET WATCH, Tuesday, September 27, 2011

[Pale Blue Dot]

Source: du

STOCK MARKET WATCH, Tuesday, September 27, 2011

AT THE CLOSING BELL ON September 26, 2011

Dow 11,043.86 +272.38 (+2.47%)
Nasdaq 2,516.69 +33.46 (+1.33%)
S&P 500 1,162.95 +26.52 (+2.28%)
10-Yr Bond... 1.95 +0.05 (+2.36%)
30-Year Bond 3.06 +0.07 (+2.34%)

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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 Reports

Sep 27 09:00 Case-Shiller 20-city Index Jul -4.5% -4.5% -4.52%
Sep 27 10:00 Consumer Confidence Sep 45.0 46.6 44.5

Read more: http://www.briefing.com/investor/calendars/economic/#ixzz1Z9JQFTMG

[Roland99]

39. July Case-Shiller home price up 0.9%

[Roland99]

40. July U.S. home prices down 4.1% yr-on-yr

[Roland99]

65. Confidence gauge 45.4 in September vs 45.2 in Aug

[Pale Blue Dot]

2. Oil rises above $82 on Europe debt progress hope

BANGKOK – Oil rose above $82 a barrel Tuesday in Asia, following stock markets higher amid hopes that Europe was finally girding for a major program to prevent debt-strapped Greece from going bankrupt.

Benchmark oil for November delivery was up $2 to $82.24 a barrel at midafternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract rose 39 cents to finish at $80.24 per barrel in New York on Monday.

In London, Brent crude for November delivery rose $1.73 at $105.67 on the ICE Futures exchange.

Energy prices followed gains in stock markets on optimism that European finance ministers might soon take action to stem the region's sovereign debt crisis.

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

[Demeter]

37. Oil Gains on Optimism Europe Will Tame Debt Crisis, Boosting Fuel Demand

http://www.bloomberg.com/news/2011-09-26/crude-oil-advances-in-new-york-on-optimism-europe-debt-crisis-will-ease.html

Oil rose for a second day in New York on speculation European governments will tame their sovereign-debt crisis, tempering a slowdown in the region’s economy and demand for raw materials. Futures gained as much as 2.8 percent, trimming the biggest quarterly decline since the global financial crisis in 2008. U.S. Treasury Secretary Timothy F. Geithner predicted Europe will intensify efforts to contain its debt problems after being pressured at international meetings in Washington last week. The European Union accounted for 16 percent of global oil consumption last year, according to BP Plc’s annual Statistical Review of World Energy.

“If there’s a credible plan that is good enough and certain enough to restore reasonable confidence to the world, then a lot of things are going to look cheap at current prices and that probably includes oil,” said Ric Spooner, a chief market analyst at CMC Markets in Sydney.

Crude for November delivery climbed as much as $2.26 to $82.50 a barrel in electronic trading on the New York Mercantile Exchange. It was at $82.16 at 3:19 p.m. Singapore time. Oil has dropped 14 percent from the end of June, the biggest quarterly loss since the three months ended December 2008. Prices are down 7.5 percent this month and 10 percent this year. London Brent futures for November settlement on the London-based ICE Futures Europe exchange rose as much as $1.80, or 1.7 percent, to $105.74 a barrel. The European benchmark contract is down 6.5 percent this quarter. It traded at a premium of $22.97 to U.S. futures, down from a record $26.87 on Sept. 6.

“Crude benchmarks were propped up by the rally in equity markets and a softer U.S. dollar,” Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Ltd. in Melbourne, said in a note today. “Uncertainty over Europe continued to be a drag on prices, but with most of the bad news already priced in, oil markets could stabilize after posting steep declines.”

*********************************************

U.S. crude stockpiles probably climbed 2.2 million barrels in the week to Sept. 23 as demand weakened in the world’s largest oil-consuming nation, according to the median estimate of 11 analysts surveyed by Bloomberg News before an Energy Department report tomorrow. Gasoline inventories are expected to have risen 1 million barrels to the highest in two months, the survey showed.

[Pale Blue Dot]

3. U.S. stock futures key off European rally

MADRID (MarketWatch) — U.S. stock market futures pointed to a higher open for Wall Street on Tuesday, taking a lead from strong gains in European markets, and bolstered by hopes for action by euro-zone officials to battle the region’s sovereign debt crisis.

Futures for the Dow Jones Industrial Average DJ1Z +1.22% rose 134 points to 11,106, while those for the S&P 500 index SP1Z +1.08% gained 14.30 points to 1,172.70. Futures for the Nasdaq 100 index ND1Z +1.24% added 26.50 points to 2,252.50.

The moves came as Asia and Europe stocks both rallied, with the Stoxx Europe 600 index XX:SXXP +2.67% up 2.5% to 225.78, as battered banks like Societe Generale SA FR:GLE +8.01% and Deutsche Bank AG DE:DBK +10.34% DB +12.16% rallied 9% and 7%, respectively.

Optimism over Europe drove a late rally on Wall Street on Monday, which helped the Dow Jones Industrial Average DJIA +2.53% climb back above 11,000 for the first time in three days.

http://www.marketwatch.com/story/us-stock-futures-key-off-european-rally-2011-09-27

Everything's ok now! Phew - that was a close one!

[Tansy_Gold]

4. Wow! 2nd rec!

I should be working.

[tclambert]

5. How old is that cartoon? Making fun of millionaires instead of billionaires!

Millionaires can't get into the country club anymore. Well, I guess $100 million still gets respect from the Chamber of Commerce. Or if you have $1M in taxable income. But if your net worth is $1M, meaning you make $100K or $150K per annum, the big players won't invite you to their parties.

[GliderGuider]

6. BBC Speechless As Trader Tells Truth

"The collapse is coming; Goldman Sachs rules the world; the Eurozone is toast; the guys who matter don't give a shit as long as they can make money; the developing situation is like a cancer - ignore it and it will kill you (and the implication is that even if you pay attention it will kill you anyway); your savings have 12 months to live."

http://www.youtube.com/watch?v=lqN3amj6AcE&feature=player_embedded

[Pale Blue Dot]

7. I saw that last night.

I'd be scared, but look at the stock market - it's going right back up again! That means everything's fine, right?

:sarcasm:

[GliderGuider]

8. Yep! Uh-huh! You betcha!

[DemReadingDU]

9. The perception is that everything's fine

But we're not fooled
:evilgrin:

[Demeter]

25. It Depends What Your Definition of "Fine" Is

[RUMMYisFROSTED]

34. Like grounded dust. Fine.

[Demeter]

38. LOLOLOLOLOL!

You made my day! :rofl:

[DemReadingDU]

51. LOL!

[Po_d Mainiac]

26. Holy shit! GFM just told tiny turbo to fuck-off!

In a speech given in Berlin, the ever-vocal German finance minister Wolfgang Schaeuble appeared less than vociferous about the new levered EFSF plan and further lambasted Geithner's 'plan' in as politically correct manner as he could. Bloomberg headlines include:

*SCHAEUBLE SAYS `WILL NOT SPEND OUR WAY' OUT OF CRISIS

*SCHAEUBLE SAYS `SOLIDARITY HAS LIMITS,' REQUIRES RETURN EFFORTS

*SCHAEUBLE SAYS `IMMEDIATE FISCAL REFORMS ARE OF THE ESSENCE'

And the kicker in response to questions on Geithner, the pithy response:

*SCHAEUBLE SAYS EASIER TO GIVE ADVICE THAN TAKE IT

He further seemed to back away from the idea of any levered EFSF strategy (though not explicitly) with the following comments:

*SCHAEUBLE SAYS INCREASING EFSF WOULD DAMAGE SOME AAA RATINGS

*SCHAEUBLE SAYS WILL ENHANCE EFSF IN MOST EFFICIENT WAY IF MUST


*SCHAEUBLE SAYS MONETARY POLICY `NOT THE WAY' TO SOLVE EURO WOES

*SCHAEUBLE SAYS `NO COMFORTABLE WAY OUT' OF CRISIS FOR EUROPE

*SCHAEUBLE SAYS EVERY STATE MUST PREPARE OWN BANK BACKSTOP PLANS

*SCHAEUBLE SAYS ASKED FOR BANK BACKSTOP PLANS FOR NEXT ECOFIN

http://www.zerohedge.com/news/solidairty-has-its-limits-german-finmin-snubs-geithner

[Demeter]

63. Nobody Listens to Him, Anyway, Not Even Angela

No Big Deal

[xchrom]

10. mr rastani wants to be the next buffett. jaw dropping yes --nt

[Warpy]

88. Yeah, pretty much

but his advice was all geared to making short term gains and his prognostication that the market will drop to zero was just a little hysterical.

When the collapse comes, I just hope it takes the derivatives market down hard. A lot of the billionaires buying Congress are going to find themselves worrying about where their next meal is coming from and that's just where we need them.

I've tightened my seat belt and grabbed an airsick bag. That's about all I can do since I know we will never know the right course of action until it is all over and we count up what's left.

[GliderGuider]

92. I don't think he said it would drop to zero

He said "collapse", which doesn't require the market to completely vanish. A loss of 50% of the Dow over 6 months would probably qualify... :evilgrin:

And yes, he's talking about trading, not investing. Personally, I don't see any reason to view the market as an investment vehicle any more. The longer the view one takes, and considering the number of bullets the world is going to have to dodge in the coming decades (peak oil, infrastructure aging, food price inflation, falling water tables, climate change refugees etc.) the less it looks like financial instruments of any sort are going to be a sensible long term investment. I'm very bullish on land, tools and useful knowledge about building houses and growing food.

[Warpy]

94. "Your savings have 12 months to live" pretty much said that

so he was being unnecessarily alarmist. I'm a pessimist and even I don't get that gloomy.

If we get a rapid collapse that leads to a lot of panic selling, I can see the market going as low as 2000. If we stay as we are now, with a slow motion collapse, I can see it bottoming out about 5000. Both will recover, of course, but the timeline depends on what the government does. If they persist in the Wall Street delusion that they can starve the peasants into prosperity, the country will stay stuck in a Depression. If they manage to break free of that delusion and do what Obama suggested in his campaign speeches 3 years ago, we'll pull out of it fairly quickly.

In any case, it is not going to recover to its present level because that level is propped up by a lot of funny money at the top that doesn't really exist and has never existed.

We are definitely going to be living in interesting times, whatever happens, whether I'm right or dead wrong. It will be fun to watch and hell to experience.

[Roland99]

11. Merkel: will help Greece restore confidence

http://news.yahoo.com/merkel-help-greece-restore-confidence-105704270.html

Chancellor Angela Merkel says that Germany will do what it can to help Greece regain markets' confidence.

...

Merkel says she has "absolute respect" for structural reforms pushed through by Papandreou's government and the most important thing is for Greece to win back confidence.

She says that "whatever Germany can do to support that, we will do." But Merkel didn't offer new measures and again rejected the idea of pooling European countries' debt — for example by issuing joint so-called eurobonds.

She also says that Germany is "not available" for further economic stimulus programs.

[Po_d Mainiac]

16. Another tool shed now lacking sharp implements? n/t

[xchrom]

12. morning to all!

:donut:

[Roland99]

13. Hoping I didn't move too slow...

I read a couple of days ago that FHA refis were offering CREDITS to cover the Yield Spread Premium...essentially paying people to refi at lower rates! Mine is USDA and doing an FHA refi with their new 1.15% PMI fee would actually mean me paying more per month (but less interest over time).

Then I found out the USDA refi is offering about the same thing but the credit was lowered somewhat yesterday (was as much as 2.65% back which would cover most, if not all, of the closing costs!)

Finally app'd yesterday and hoping to get a lock at some point today. Rate yesterday was 3.75% for 30-year fixed! I'll cut nearly $100k out in interest (a lot more if we sink the difference between the current mortgage pymt and the new one back into principal each month)

Unbelievable the refi deals going on right now...I guess maybe I can thank Chopper Ben for the "twist"? I dunno...home prices are still soft if not lower in many areas and mortgage rates at historic lows...geez...i sound like a shill for the real estate industry...

[Po_d Mainiac]

18. You may find that by just upping what you pay/month

will have the same end results, without doing a refi...Any extra you pay goes directly towards the balance.

[Roland99]

22. Right...we were already doing that a little. But, this is a big change.

going from 5.25% to 3.75%. $250/mo difference! Think of how much I can stimulate the economy now! :rofl:

[DemReadingDU]

42. Our mortgage loans have been 7.5% beginning 1971

People nowadays don't realize how cheap mortgages are

1971 - 1st house @ $21,900, rate 7.5% for 20 years, 20% down, sold $27,000
1975 - 2nd house @ $34,000, rate 7.5% for 25 years, 20% down, sold $63,000

1987 - 3rd house @ $134,000, rate 9% for 30 years, 20% down
1991 - refinanced @ 7.5% for 15 years, paid off early in 2002 by paying extra on the principal every month

What also is interesting, is that only spouse was the wage-earner for our first 2 houses, while I was home with 2 babies. By the early 80s, I had started working, but so had many other women. And home prices started to escalate. Coincidence? Bubble?

[Roland99]

52. *usually* prices rise when rates go down but anything goes nowadays

[DemReadingDU]

68. That could be true, in these times

But definitely not true in the 70s.

Another piece of history is that all of our loans were 'conventional', obtained from a savings&loan or bank, and the requirement was 20% downpayment. The financial institutions felt that if a person put that much down, chances of default were very slim. And conventional loans usually indicated a nicer house in a nicer area. However, some people went for FHA loans, which usually meant only 5% down, and in less desirable areas.

Jump to the 90s and beyond. Homes escalated in price. Also the FHA came in and started making loans in the more desirable areas. In the past 10 years, the banks started making all kinds of types of loans, the most infamous, the 'ninja loans'...no income, no jobs, no assets.

I am not saying all mortgages are suspect, but there has been a change in philosophy of mortgages in the past 40 years. Hope everything works out for you in the re-finance. :)

[Roland99]

85. there's definitely a lot more easy money (less so now than a few yrs ago)

but there's still quite a sub-prime market.

I've even read of the possibility of a FICO mid-score of 580 becoming acceptable again.


oy vey!

[Po_d Mainiac]

43. How often is the reset to the PMI?

Few things scare me as much as VRI's.. YMMV

[Roland99]

55. Not sure on the FHA PMI...it used to be up to 90% LTV but not sure now.

As for the USDA refi, there's a 0.3% monthly fee that's not PMI but, rather, a funding fee to keep the program self-funding.

Even with that I'm saving nearly $200/mo over the current payment.

[DemReadingDU]

70. Another reason we always put 20% downpayment

20% downpayment meant we didn't have to pay that PMI
but with house prices nowadays, very few people can afford that much of a downpayment.

[Roland99]

86. too true

this market "correction" has helped but a lot of the problem is homes are just too darn big and for the average new home, the fixtures are upgraded, bathrooms more ornate, etc etc.

I thought the 3br/2ba house I grew up in in the suburbs was pretty darn nice...would be a shack by today's standards.

[xchrom]

14. europe: September retail sales weaken at fastest in 16 months

http://uk.reuters.com/article/2011/09/27/uk-cbi-retail-sales-idUKTRE78Q13C20110927

(Reuters) - Retail sales weakened at their fastest pace in 16 months in September and stores expect little improvement in October as struggling consumers clamp down on spending, a survey by the Confederation of British Industry (CBI) showed on Tuesday.

The CBI distributive trades survey's retail sales balance edged down to -15 this month from -14 in August. That was the lowest since May 2010 and in line with analysts' forecasts.

Underlying sales were even weaker, with the balance gauging the three-month moving average falling to -11 from -7, its lowest since August 2009.

The figures were the latest in a recent string of poor data, which has raised expectations the Bank of England may soon inject more stimulus into the economy to shore up growth.

[xchrom]

15. BAE Systems to cut nearly 3,000 jobs

http://uk.reuters.com/article/2011/09/27/uk-britain-bae-jobs-idUKTRE78Q0Q120110927

(Reuters) - Europe's biggest defence contractor BAE Systems said it will cut nearly 3,000 jobs in Britain as smaller global defence budgets hit orders for its fighter jets.

BAE said the four partner nations in the Eurofighter Typhoon programme -- the UK, Germany, Italy and Spain -- were slowing production rates to help ease their budget pressures, affecting the workload at a number of sites.

The company, one of the largest prime contractors in the U.S, said production was also slowing on the F-35 Joint Strike Fighter jet, a U.S. program led by Lockheed Martin for which BAE produces the tailplane.

"Pressure on the U.S. defence budget and top level programme changes mean the anticipated increase in F-35 production rates will be slower than originally planned, again impacting on our expected workload," said BAE in a statement on Tuesday.

[xchrom]

21. Strength in commodities, banks boosts FTSE higher

http://uk.reuters.com/article/2011/09/27/uk-markets-britain-stocks-idUKTRE78Q0KP20110927

(Reuters) - A rally by commodity stocks and strength in financial issues drove Britain's leading share index sharply higher on Tuesday, as investors risk appetite returned on increasing hopes that European leaders will take purposeful action to alleviate the region's debt crisis.

European Central Bank policymakers said on Monday officials were working to boost the firepower of the region's rescue fund to try and alleviate a crisis that U.S. President Barack Obama said "is scaring the world."

At 11:57 a.m., the FTSE 100 index was up 133.65 points, or 2.6 percent at 5,223.02, having bounced from a session lows of 5,089.37, extending Monday's 0.5 percent advance as the final week of September and the third-quarter draws to an end positively after a turbulent month.

"This 'whippy' behaviour suggests that investors remain unconvinced that the bottom is in place (although this morning's advance should help to settle nerves somewhat). Nevertheless, a snap rally could conceivably lift the UK index up to around 5,330 in the short-term," said Bill McNamara, technical analyst at Charles Stanley in a note.

[xchrom]

31. Greece: will get loans in time to avoid default

http://hosted.ap.org/dynamic/stories/E/EU_EUROPE_FINANCIAL_CRISIS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-09-27-08-50-24

BERLIN (AP) -- Greece will receive its next batch of bailout loans in time to avoid a disastrous default, the finance minister said Tuesday, as stock markets rallied on hopes that the prime minister will discuss new ways of solving the crisis with Germany's leader later in the day.

Reports that European leaders are considering bolder moves to relieve Greece and other countries of their debt burden have buoyed spirits in financial markets, though officials in Chancellor Angela Merkel's government have downplayed such speculation.

The current plan is to have Greece implement painful debt-reduction measures in exchange for rescue loans.

Greece's international creditors are holding up payment of the next batch of those loans until a review of the reforms is completed in the coming days. Without the money, Greece faces bankruptcy in mid-October, potentially sending shock waves through the financial sector in Europe and abroad.




*****another day older and-a deeper in debt...

[Demeter]

41. Bankruptcy threat to Greece as euro ministers delay vital €8bn

http://www.guardian.co.uk/business/2011/sep/26/debt-crisis-euro

Euro ministers refuse to give date for release €8bn bailout...Greece may not be able to pay civil servants next month...The Greek prime minister, George Papandreou, is holding critical talks with Angela Merkel over dinner in Berlin on Tuesday night, while another cliffhanger looms as Greek MPs vote on a property tax announced by his administration in a desperate bid to plug a €2bn budget black hole. In an atmosphere of growing uncertainty, the beleaguered government also faced a barrage of strikes launched by transport unions fiercely protesting against further austerity measures.

Anger with Greece over its failure to properly implement reforms in return for a €110bn bailout from the International Monetary Fund, European commission and European Central Bank in May 2010 led inspectors from the "troika" to abruptly suspend a visit to Athens this month. Tasked with compiling a crucial review of the country's fiscal progress, it was hoped the monitors would return tomorrow. But continued distrust over Athens' ability "to walk its talk" – despite repeated assertions that it would do "whatever it takes" to rein in Greece's runaway public debt and deficit – has reportedly hampered negotiations. Despite the government's attempt to appease rescue creditors by unveiling a new round of draconian cuts last week, the Greek finance minister, Evangelos Venizelos, received a cool reception at the IMF's annual meeting in Washington last weekend. Christine Lagarde, the body's managing director, insisted that headway could only be made with "implementation, implementation, implementation".

Without inspectors completing their audit of the economy, the EU has also said a disbursement of rescue funds will not be made, bringing Greece closer to having to declare bankruptcy and ultimately default. Reserves are fast drying up and Athens admits it will run out of money in mid-October when public-sector wages and pensions need to be paid. "I cannot give you any specific date, but certainly, it is very difficult to imagine that by 3 October," Amadeu Altafaj Tardio, a commission spokesman, said. He refused to be drawn as to why Greece's troika of lenders were delaying their return. Once the mission was concluded, he added, monitors would have to send their findings to other eurozone countries before a decision could be made – a lengthy process that would mean the instalment not being disbursed before the middle of the month at the earliest.



...The surprise property tax, which is expected to cost the average household an extra €1,000 a year – when ordinary Greeks' purchasing power has halved – will be the government's first hurdle tomorrow night when the 300-seat parliament votes on the bill....A raft of other cost-cutting policies that Papandreou has agreed to accelerate as part of €27bn budget-saving "mid-term fiscal plan" will be the next. "It's not that we don't want to pay the taxes: we simply can't pay them," said Katerina Angelopoulou, a hotel worker attending an open-air round table in front of the finance ministry. "My take-home wage is €950 euro a month. I have three children who need to be fed, who have lessons, who this year have required photocopies of textbooks because the state couldn't even afford to give them the real thing. How will I cope if a third of my wage goes on taxes?" Greek police also joined the protests against further austerity today with the special guards unit hanging a giant black banner from the top of Lycabettus Hill in the capital reading "Payday, day of mourning."..."They are killing us with the cuts," said one officer on duty outside the finance ministry. "We're taking extra precautions outside this building because in this climate anything could happen but soon we too will be protesting."

[xchrom]

56. given how this has all played -- that is the scenario that i expect.

but what do i know?

[xchrom]

35. Poland's Shale Gas dilemma for Europe

http://www.independent.co.uk/news/business/analysis-and-features/polands-shale-gas-dilemma-for-europe-2361570.html

Earlier this month, the Prime Minister of Russia, Vladimir Putin, and the former German Chancellor, Gerhard Schröder, ushered in what was widely seen – for better and worse – as a new era in the European gas market. On 6 September, at a ceremony outside St Petersburg, they inaugurated the Nord Stream pipeline that takes natural gas directly from Russia to Germany under the Baltic Sea.

Bypassing Ukraine, Poland and the Baltic States, the new pipeline is also designed to bypass the disputes that have periodically halted the flow of Russian gas to the rest of Europe.

Even as the new gas started to flow, however, there were the first signs that the European gas market could be in for even more radical reshaping within less than 10 years – in energy terms, a mere twinkling of the eye.

At an economic forum in Poland which happened to coincide with the opening of Nord Stream, the hottest topic – in the conference halls and in the corridors – was of the potential for shale gas, a resource that has quietly altered the balance of energy provision in the United States and helped bring prices there down by a fifth in the past five years.

[xchrom]

62. Employers want rethink on agreed wage hikes

http://www.elpais.com/articulo/english/Employers/want/rethink/on/agreed/wage/hikes/elpepueng/20110926elpeng_10/Ten

The Confederation of Spanish Business Organizations (CEOE), Spain's largest employer group, is looking to renegotiate agreed wage hikes for next year ? of between 1.5 and 2.5 percent ? with the labor unions.

The rises were agreed in exchange for union approval for wage moderation this year. However, since then talks on drawing up new rules for collective bargaining between employers and labor organizations have been abandoned after the two sides failed to reach agreement on their differences.

The CEOE and the country's main unions, CCOO and UGT, are currently engaged in negotiations to extend a cap in wage rises to 2014 as part of efforts to help the country recover from its worst recession in decades. However, the CEOE believes the hikes agreed for 2012 present an anomaly. "We have to decide what we do with 2012," the secretary general of the CEOE, José María Lacasa, said Monday.

[Demeter]

17. Smaller Banks Use Free Checking To Lure Customers

http://www.npr.org/2011/09/27/140596332/smaller-banks-use-free-checking-to-lure-customers?ft=1&f=1001

Big banks are beginning to make good on their threat to charge fees for everyday checking accounts. But most banks aren't big banks, and community institutions are hanging on to free checking as long as they can in the hopes of luring away some of the big banks' disgruntled customers.

The larger banks are now enacting what customers like James Miller of Nashville have heard was on the horizon for a year or more: Your free checking account is about to cost you. The research firm Moebs Services found that two-thirds of the country's largest banks no longer offer free checking...

Smaller institutions see a window of opportunity ... Tennessee-based Southeast Financial Credit Union is putting up billboards and sending out letters that proclaim: "Free checking is alive and well."...A survey by Bankrate.com asks if consumers would consider switching to a different provider if their bank raised its fees on checking accounts. In addition, the study found that 75 percent of those making more than $75,000 would consider moving their account, while only 60 percent of those making less than $30,000 would do so.

Tim Amos, with the Tennessee Bankers Association, says that for years, debit card fees charged to merchants paid the way for checking accounts. "It may be free to the customer, but it's not free to the bank that offers the service," Amos says. "Someone is paying for the service, and always has been." But the recently passed financial reform bill cuts those debit card fees by half starting Oct. 1, at least for the big banks. "It only applies, though, to banks with over $10 billion in assets, which is certainly all of the larger banks, but it doesn't apply to those banks under $10 billion in assets, which is the vast majority of banks," Amos says. Maintaining higher merchant fees for the time being helps community banks keep free checking around, Amos explains. But in some ways, they can't afford the risk of raising fees like big banks can. Southeast Financial executive John Jacoway says it would be much harder to recover if customers leave in droves....Karen Rowlette says she scrapped Bank of America, closed all of her checking accounts and now has her paycheck deposited to a prepaid Walmart card. "In today's recession, every little bit counts," she says. With all the new nickel-and-diming, Rowlette says cash might even make a comeback.

[Po_d Mainiac]

19. In the future they may come up with the novel idea of giving away free toasters!

:rofl:

[Demeter]

24. Hey, Po!

How's my favorite Maineac? And how is Maine?

In the 70's, we got an entire set of stoneware by making deposits at our local savings and loan...nice dishes...set of 8 or maybe 12 with serving pieces, too.

That was in Mass.

[DemReadingDU]

32. I got a Bavarian set of dishes from the grocery store, n/t

[Po_d Mainiac]

33. Maine is getting colorful.

As for our weather..It always happens..As long as it's above -10degF it's good.

[DemReadingDU]

30. Those money cards have FEES

and money cards may not be as safe as a checking account

4/4/11 Fees For Most Prepaid Cards Higher Than Basic Checking Accounts
Consumers Union Offers Tips On Minimizing Bank Account & Prepaid Card Fees
Most prepaid cards charge higher fees than basic checking accounts offered by the top five banks in the U.S., according to a new analysis released today by Consumers Union, the nonprofit publisher of Consumer Reports.

While some banks are beginning to charge new fees, Consumers Union found that consumers will save money and enjoy stronger protections with a basic checking account compared to a prepaid card, especially if they take some simple steps to minimize fees. Some prepaid card issuers do such a poor job disclosing fees that consumers may be surprised at how quickly fees can add up. Consumers Union offered tips to help bank and prepaid card customers reduce fees.

more...
http://www.consumersunion.org/pub/core_financial_services/017583.html


4/4/11 Adding It All Up: How Prepaid Card Fees Compare to Checking Account Fees
These charts compare some money cards for various fees
http://www.defendyourdollars.org/pdf/Adding-It-All-Up.pdf

edit: The charts begin on page 6

[Demeter]

44. (I try not to poke fun at people's choices)

Thanks for the research...I hadn't heard of such things before.

[DemReadingDU]

61. I heard that same segment on NPR this morning

And I thought that it might be a convenient thing to do, and disengage from the banks. However, those fees associated with those money cards, are outrageous!

[Po_d Mainiac]

64. These numbers are approximate, but close enough

90% of banks are considered small institutions, but they only represent 20% of total deposits.

The TBTF's would cease to exist if that 80% lien against the FDIC moved to Main Street instead of being funneled to Lower Manhatten.

[xchrom]

20. PRECIOUS-Gold jumps 3 pct on physical buying, soft dollar

http://uk.reuters.com/article/2011/09/27/markets-precious-idUKL5E7KR19Q20110927

LONDON, Sept 27 (Reuters) - Gold prices rose more than 3
percent on Tuesday as a drop in the dollar index helped the
precious metal snap a four-day run of losses and after an early
rout in the previous session tempted price-sensitive physical
buyers back to the market.

Prices dropped more than $120 an ounce in Asian trading
hours on Monday, an unprecedented intraday fall in value terms,
as a rush for the liquidity of the dollar, losses in other
markets and a margin hike on CME gold futures prompted selling.

They had pared those losses to just 1.7 percent by the end
of the session, however, and continued their recovery on
Tuesday, climbing comfortably back above their 100-day moving
average just below $1,640.

Spot gold was up 2.8 percent at $1,672.00 an ounce at
0949 GMT, having peaked at $1,676.69. U.S. gold futures GCv1
for August delivery were up $78.40 an ounce, or nearly 5
percent, at $1,673.20.

[Demeter]

23. Yesterday's Stunning DOW Performance Volume: 225.6 M Shares

Trading has dropped from the week of July 25th's peak of 800+ M average volume over the 5 days...

http://moneycentral.msn.com/investor/charts/chartdl.aspx?symbol=$INDU

So, yes, it's been a total manipulation by the PPT. Or there's been too much cocaine at some rogue trader's party...

[AnneD]

84. Must be that...

HFT nicking a fraction of a cent from the pension funds. I am sure cocaine is flowing freely with all the money they are stealing. One company now says they can do HFT trades in nano seconds.

If trades were cooking times and your portfolio were a potato, they have gone from stealing from you in the time it takes to bake the potato in the oven to stealing from you in the time it takes to nuke the potato in the microwave.

[Pale Blue Dot]

27. US Has More Serious Problems Than Europe: Jim Rogers

Global markets have been whipsawed in recent weeks as uncertainty over Europe's debt situation persisted. But renowned investor Jim Rogers says the U.S. economy has more serious problems than Europe.

"Europe has a few bad, bankrupt states, so does America. We've got Illinois which is bigger than Greece, we've got California, we've got New York, you know those are pretty big states that have serious economic problems. We have pension plans in America that are terribly under water," Rogers told CNBC on Tuesday.

According to Rogers, the U.S. has deeper structural problems than Europe as well as higher debt levels.

"Europe's got some bad problems but the entity as a whole is not nearly as deep in debt as the U.S. They don't have a huge balance of trade deficit, like we do," Rogers said.

http://www.cnbc.com/id/44681050

[Demeter]

50. Mr. Rogers Represents One of Our "Serious Problems"

[Pale Blue Dot]

28. Goldman Prepares Drastic New Cuts Ahead Of Rumored Quarterly Loss

Goldman is looking at adding another $250 million to drastic spending cuts announced earlier this summer, bringing the total to $1.45 billion, according to DealBook.

Cuts were already expected to involve 1,000 layoffs -- which now may be closer to 1,200.

The bank also may cut back on bonuses and noncompensation expenses like travel and real estate.

Last week Barclays predicted that Goldman would report its second quarterly loss in history. We'll know for sure on October 18.

Read more: http://www.businessinsider.com/goldman-prepares-drastic-new-cuts-ahead-of-rumored-quarterly-loss-2011-9#ixzz1Z9oXileE

[Demeter]

54. How's that "Running the Globe" Thing Going for Ya?

Grain of salt time.

[xchrom]

29. The 10 best things government has done for us

http://www.marketwatch.com/story/the-10-best-things-government-has-done-for-us-2011-09-26?dist=beforebell

WASHINGTON (MarketWatch) — “The government is the problem,” they say. “The government can’t create jobs.” Or: “The government should just get out of the way.” How many times over the past three — or 30 — years have you heard conservatives (and even a few liberals) say that there’s no role for government in fixing our economy?

They’re wrong, but this constant refrain is having an impact on our political system; it’s narrowing our options as we struggle with excessive unemployment, burdensome debt and wasted lives.

As often as this anti-government cliché is repeated, few politicians actually believe it. Republicans are just as quick as Democrats to ask for federal funding for local projects — funds that they know improve the lives of voters. Despite what they say for political effect, everyone knows that the government can do a lot to create the right conditions for prosperity. There are very few true libertarians in America, people who believe that the best government is no government at all.

Look, don’t get me wrong: I don’t think the government is perfect. Any institution that can execute an innocent man, or fight an immoral war, or steal a whole continent, or reward failed banks can certainly be improved. Government wastes lots of money. Governments can make things worse by introducing perverse incentives for us to do things that are inefficient and idiotic. Governments can be corrupt, heavy-handed, even evil.

[avaistheone1]

99. Thumbs up.

Bookmarked and recommended.

[xchrom]

36. G20 economies urged to invest in jobs as shortfall heads for 40 million

http://www.independent.co.uk/news/business/news/g20-economies-urged-to-invest-in-jobs-as-shortfall-heads-for-40-million-2361558.html

The G20 group of leading economies could face a shortfall of 40 million jobs next year, with worse to come, without international co-operation to boost employment, the International Labour Organisation warned yesterday.

The ILO made its forecast as markets remained volatile over fears about a Greek default and a global economic slowdown. Pimco, one of the world's most powerful investment funds, added to the sense of crisis by predicting that developed economies would grind to a halt in coming months.

The ILO said employment in the G20 would need to grow by at least 1.3 per cent a year by 2015 to recover the 20 million jobs lost since 2008. However, the slowdown in the global economy and already anaemic growth in many G20 countries suggests employment growth could be less than 1 per cent a year, the ILO said in a paper to be presented to G20 employment ministers meeting in Paris.

Job creation of 0.8 per cent a year is "a distinct possibility" and would double the jobs shortfall from the start of the crisis to 40 million by the end of this year, with a far bigger shortage to come by 2015, the ILO said in a study compiled with the Organisation for Economic Cooperation and Development.

[xchrom]

45. south asia: Sensex up 473 points on firm global cues, proposal to cut STT

http://timesofindia.indiatimes.com/business/india-business/Sensex-up-473-points-on-firm-global-cues-proposal-to-cut-STT/articleshow/10140862.cms

MUMBAI: Snapping its 4-day losing streak, the BSE benchmark Sensex today rebounded 473 points amid firm global trend and a proposal to cut the Securities Transaction Tax (STT).

Sensex, which had lost 1,050 points in last four trading sessions, bounced back 472.93 points to 16,524.03 as investors pinned hopes on renewed efforts by European policymakers to find a way to cut Greece's debt.

Market sentiment also improved on reports that the government is considering some tax cuts on securities transactions, and fresh inflow of foreign funds.

The broad-based NSE index Nifty rose 135.65 points to 4,971.25 led by stocks of realty, IT and refinery sectors.

[xchrom]

53. Crisis looming, think out-of-the-box: Pranab Mukherjee to World Bank

http://timesofindia.indiatimes.com/business/international-business/Crisis-looming-think-out-of-the-box-Pranab-Mukherjee-to-World-Bank/articleshow/10113581.cms

WASHINGTON: Finance minister Pranab Mukherjee on Saturday said the World Bank needs to find ways to improve its capital base so that it can enhance lending to developing countries, underlining that with another crisis looming, prioritisation of activities is the need of the hour.

At the top of the World Bank's list of priorities should be to address its lack of financial capacity, as well as that of the International Finance Corporation, and work toward a strong capital base as well as find creative ways to expand lending and investment in developing countries, Mukherjee said.

The World Bank's focus needs to be on critical areas such as poverty alleviation, food price inflation, financing for climate change and meeting the energy needs of the poor, he stressed.

"The International Development Association (IDA) needs to be put on a more sustainable footing, with donors giving priority to IDA over Trust Funds and also without weakening the resources of the International Bank for Reconstruction and Development (IBRD) and IFC," Mukherjee said in his intervention during the World Bank's Development Committee meeting on Global Development Issues and the World Development Report 2012 on Gender.

[xchrom]

57. Any speculative rise in silver is a good opportunity to sell: Dharmesh Bhatia, Kotak Commodities

http://economictimes.indiatimes.com/opinion/interviews/any-speculative-rise-in-silver-is-a-good-opportunity-to-sell-dharmesh-bhatia-kotak-commodities/articleshow/10137727.cms

Identify one commodity for us where you would advise our viewers to create an open long position for next three months and one commodity where you would advise our viewers to keep an open short position for next three months?

Any speculative rise in silver is a good opportunity to sell as of now. I am expecting silver to come down a little to around 45000 to 44000 in the coming months. It would be in a consolidation phase. It would move very fast. Intraday traders, should stay away from silver because it moves Rs 2000-3000 in an intraday movement, so my position building is comfortable for silver.

For long position, I will suggest copper. Copper has slipped down from Rs 410 to almost 350-345 levels. That is a very good level to buy, accumulate copper, especially in the November contract. I am expecting the price to again touch 8000 in LME where you can expect MCX price to be around 390-395 level, maybe 400 level will be the crucial level markets would again try to test. So buying copper is advisable on very bottom lines.

[Demeter]

46. Senate leaders announce bipartisan agreement to avert government shutdown

OH JOY! OH RAPTURE! MY WEEK IS NOW COMPLETE!

IS THIS GOING TO BE A SERIES? LIKE BATMAN?

http://www.washingtonpost.com/politics/2011/09/26/gIQADvs5zK_story.html?hpid=z1

Senate leaders agreed to a deal Monday evening that is almost certain to avert a federal government shutdown, a prospect that had unexpectedly arisen when congressional leaders deadlocked over disaster relief funding.

After days of brinkmanship reminiscent of the budget battles that have consumed Washington this year, key senators clinched a compromise that would provide less money for disaster relief than Democrats sought but would also strip away spending cuts that Republicans demanded. The pact, which the Senate approved 79 to 12 and the House is expected to ratify next week, is expected to keep federal agencies open until Nov. 18.

“It will be a win for everyone,” said Majority Leader Harry M. Reid (D-Nev.). Minority Leader Mitch McConnell (R-Ky.) called the plan “a reasonable way to keep the government operational.” Aides to House Speaker John A. Boehner (R-Ohio) said he will support the compromise.

The spending battle marked the third time this year that congressional acrimony has brought the government to the edge of calamity...

[AnneD]

87. Rut Roh......

“It will be a win for everyone,” said Majority Leader Harry M. Reid (D-Nev.). Minority Leader Mitch McConnell (R-Ky.) called the plan “a reasonable way to keep the government operational.” Aides to House Speaker John A. Boehner (R-Ohio) said he will support the compromise.

Hope you have your KY jelly handy.

[xchrom]

47. IATA says world economy very uncertain, but sees no recession

http://timesofindia.indiatimes.com/business/international-business/-IATA-says-world-economy-very-uncertain-but-sees-no-recession/articleshow/10136652.cms

HONG KONG: The International Air Transport Association (IATA) said on Tuesday that the outlook for the global economy is very uncertain, but it does not expect a recession.

"There is so much uncertainty over the world economy, obviously in Europe and United States," said IATA director general and chief executive Tony Tyler at a media briefing in Hong Kong.

Earlier this month, IATA forecast a 29% decline in 2012 industry-wide profit to $4.9 billion on the back of a weak global economy and stubbornly high jet fuel prices.

The group, whose 230 members carry more than 93% of scheduled international air traffic, revised up its earnings forecast for the industry to $6.9 billion this year from a $4 billion forecast it made in June.

[Demeter]

48. Up 215 Pts at Open--Looks like another Fantasy Market Day

[xchrom]

49. asia: China installs gold vending machine as demand soars

http://timesofindia.indiatimes.com/business/international-business/China-installs-gold-vending-machine-as-demand-soars/articleshow/10121475.cms

BEIJING: China, which recently came closer to India in terms of the gold market, has installed its first gold vending machine in Beijing. In an attempt to become the second largest bullion market after India , the Chinese government is encouraging sales of gold.

The machine, which has been installed in Beijing's Wangfujing shopping district, will enable consumers to use cash or bank card for buying gold bars or coins of different weights, based on the prevailing market price. The maximum limit for each withdrawal has been set at 2.5 kg or one million yuan ($157) worth of gold, the official media said. More such machines are likely to be installed across the country, which saw gold demand soaring 27% last year. Gold vending machines already exist in Britain, the US, the Middle East and Europe.

This facility offers wealthy Chinese an attractive investment option when the government is actively discouraging real estate investment and speculation to cool down property prices. Chinese consumer purchases of gold at 580 tonne in 2010 was still lower compared to India's consumer buying at 963 tonne, according to World Gold Council.

[xchrom]

58. Hong Kong shares jump in best day since 2009, China up

http://economictimes.indiatimes.com/markets/global-markets/hong-kong-shares-jump-in-best-day-since-2009-china-up/articleshow/10139232.cms

HONG KONG: Hong Kong shares snapped a four-day losing streak on Tuesday as the best single-day gains since May 2009 pulled the Hang Seng Index out of technically oversold territory, but turnover declined for a second straight session.

Gains were supported by a short squeeze, particularly in stocks that have been most battered recently. Ping An Insurance (Group) Co of China Ltd jumped 10.1 per cent after plunging 14 per cent on Monday.

The Hang Seng Index closed up 4.2 per cent at 18,130.6 points,, lifted by outperforming mainland names that helped the China Enterprise Index leap 6.4 per cent.

"People are still not too bullish. I think you have to take into consideration month-end window-dressing, we're down more than 3,000 points this month alone," said Alex Wong, Ample Finance Group's director of asset management.

[xchrom]

60. Asia's hedge fund recovery set to stall as market slides

http://economictimes.indiatimes.com/markets/global-markets/asias-hedge-fund-recovery-set-to-stall-as-market-slides/articleshow/10138124.cms

HONG KONG: Asia's hedge funds industry is seen struggling to regain its pre-crisis size any time soon as the recent global market slump threatens to deter investors from making fresh allocations to them and delay new product launches.

That is bad news for the dozens of startups, prime brokers and service providers who have set up shop or expanded in Asia in the hope of capital returning to the region.

Regional hedge fund assets contracted 5 percent in the first half of 2011 to $145 billion, $47 billion below the peak level hit in December 2007, as defensive portfolios clipped returns and investors started applying the brakes to capital re-allocations, new data released by industry tracker AsiaHedge on Monday showed.

By contrast, the global industry regained its pre-crisis asset levels last year and subsequently scaled new highs of above $2 trillion, according to data from Hedge Fund Research.


***they're not doin it right?

[Demeter]

59. Obama brings jobs plan to Silicon Valley (ROAD JOBS--GET A CLUE, BRO!)

http://www.mercurynews.com/business/ci_18979164?nclick_check=1

President Barack Obama on Monday carried his job-creation crusade into the heart of Silicon Valley, a corner of the country that has done pretty well at job creation on its own...At a town-hall meeting with social-media powerhouse LinkedIn dubbed "Putting America Back to Work," the president was relaxed and often jovial, using the event at the Computer History Museum in Mountain View as a bully pulpit for his $447 billion plan to create 1.9 million jobs renovating the nation's roads, airports and railways.

Seeming just as pumped up as the crowd of LinkedIn members and guests, Obama started with some serious ego-stroking, saying every time he comes to Silicon Valley, "I am excited about America's future because part of the country better represents the essence of America. If you've got a good idea and are willing to put in the blood, sweat and tears to make it happen, you can do it. That driving spirit has made America a superpower."

For the next hour, Obama fielded a half-dozen questions, some from the live audience and others submitted online. At times, he spent as much as 10 minutes on a single answer, particularly those on the need to make America's education system more globally competitive...His message was clear: put people back to work now, but in coming years do what's necessary to ensure that America stays competitive. After stressing the need to get more teachers back into the classroom (THE STUPID, IT BURNS! NEXXT, HE'LL WANT NURSES IN HOSPITALS!--DEMETER), Obama made another push for improving
the nation's infrastructure, "putting people to work rebuilding our roads, and also making sure we're providing small businesses the kinds of tax incentives that will allow them to succeed."

********************************************************

Obama, whose plan depends on raising taxes on the wealthy, got a softball question from a man the president referred to as "that guy with glasses up in the back row." It turned out to be a former -- and now independently wealthy -- Google (GOOG) brand manager named Doug Edwards. Edwards said, "I don't have a job but that's because I've been lucky enough to live in Silicon Valley and do quite well, so I'm unemployed by choice." Then he asked: "Will you please raise my taxes? I would like you to invest in things like Pell grants and job-training programs that made it possible for me to get to where I am."...Obama ran with it, saying, "America succeeds in large part because of entrepreneurs, which is great." But, he said, "We're successful because others have created great universities" and well-run government programs that help students learn, so "we've all benefitted from somebody somewhere helping us out."

Within an hour after the event, Obama was back aboard Air Force One, heading to more fundraisers in Southern California.

[Roland99]

91. The Temporary Blues

http://www.youtube.com/watch?v=kZr7jBoYbS0

[Demeter]

66. Corporations Couldn’t Wait to ‘Check the Box’ on Huge Tax Break

http://www.propublica.org/article/corporations-couldnt-wait-to-check-the-box-on-huge-tax-break

A simple rule meant to cut paperwork for U.S. companies has grown into one of the biggest multinational tax breaks around, costing the United States and other governments billions of dollars in lost taxes each year....It thrives thanks to determined business support, including a campaign two years ago that forced the Obama administration to retreat from altering it and tax professionals worldwide who exploit its benefits.

The rule is dubbed “check-the-box.” It allows U.S. companies to strip profits from operations in high-tax countries simply by marking an Internal Revenue Service form that transforms subsidiaries into what the agency calls a “disregarded entity.” Others have labeled them “tax nothings.” Check-the-box allows companies to avoid the normal 35 percent U.S. corporate tax on certain types of income. The Treasury Department estimates that annual revenue losses from check-the-box have hit almost $10 billion. Other countries are also said to lose billions as income is shifted to places with low or no taxes, although there is no official estimate. The impact of check-the-box goes beyond the drain on government coffers. The rule, along with other tax provisions, has helped fuel explosive growth in foreign investment by American corporations. Since 2004, the earnings that U.S. companies keep overseas have doubled to about $1.8 trillion, U.S. Department of Commerce data show.

These “unrepatriated” earnings, which are not subject to tax while held abroad, figure prominently in Washington’s debate about corporate taxes. While President Barack Obama has proposed clamping down on loopholes, business groups and allies in Congress are rallying for a tax holiday on overseas profits and a sharp reduction in the corporate tax rate. Their argument: The high rate creates a disincentive to invest in jobs at home. U.S. companies with the most profits accumulated abroad tend to invest heavily in research and development that can spur job creation.

Check-the-box is but one of many forms of “tax arbitrage”—the art of exploiting differences in countries’ tax systems. It can reduce taxes all by itself or figure into more complex transactions. As the Financial Times and ProPublica reported Monday, the IRS in recent years has clamped down on what it views as abusive arbitrage deals involving foreign tax credits. But check-the-box lives on. It is not among loopholes targeted by Obama’s new plan. Its untouchable status—the government has twice tried to kill it and balked—provides a case study in how a billion-dollar tax break was born by mistake, then protected by the power of the business community.

The original idea was innocent enough—to cut red tape by making it easier for companies to decide how to categorize their subsidiaries...

MISTAKE, MY FOOT!

[Demeter]

67. Eurobanks likely to get TARP-like funding - Morgan

http://uk.reuters.com/article/2011/09/26/uk-eurobanks-research-jpmorgan-idUKTRE78P10120110926

Euro-zone governments are more likely to ease the funding crisis through a "Euro TARP" capital injection of up to 150 billion euros, said J.P. Morgan Securities, which estimated the sector faces a capital shortfall of 148 billion euros. Policymakers have been debating over the possibility of the European Central Bank and the European Financial Stability Facility mimicking the U.S. government's Troubled Asset Relief Program (TARP) to restore confidence in banking and ease the sovereign debt crisis.

"Euro-TARP is in our view the best risk-reward medicine for opening the Eurobank funding market," JP Morgan analyst Kian Abouhossein wrote in a note to clients. "We see the capital injection through mandatory convertibles as the best instrument rather than preferred or contingent capital," the analyst said.

In a separate report, UBS analysts said they expect some form of intervention from the European Central Bank (ECB) and a euro zone guarantee scheme for bank term debt or a Euro TARP to provide "sticking plasters for the system." "Implementing such a system may well require external discipline," UBS analysts said.

Overall Eurobanks require 112-148 billion euros of capital assuming higher current market implied sovereign haircuts of 60 percent for Greece, 40 percent for Portugal and Ireland and 20 percent for Italy and Spain, estimated JP Morgan's Abouhossein. The top 28 Eurobanks require at least 45 billion euros of capital to meet 2012 capital requirements for globally systemically important banks (G-SIBs), Abouhossein said. To mitigate the risks of another financial crisis G-SIBs will now be forced to keep more capital on their books.

France could lead a capital injection across all French Banks with 10 billion euros of capital required as absolute minimum, Abouhossein said...

[Demeter]

69. European Bank Cuts Purchases of Bonds

http://online.wsj.com/article/SB10001424052970204010604576594940636059566.html?mod=dist_smartbrief

The European Central Bank dramatically scaled back its purchases of government bonds last week despite continuing strains in financial markets, putting renewed pressure on governments to step up efforts to stem the debt crisis...The ECB purchased €4 billion ($5.39 billion) in government bonds last week, down from nearly €10 billion the previous week and the lowest total since resuming the controversial bond-buying program seven weeks ago in an effort to prevent Europe's debt crisis from engulfing Spain and Italy.

"It's a reality check," said Carsten Brzeski, economist at ING Bank, referring to the decline. "It really shows how reluctant" the ECB is to intervene in financial markets on a large scale, he said.

With the response of euro-zone governments hobbled by delays, financial markets are increasingly pinning their hopes on the ECB to solve the crisis through a mix of rate cuts, extensive lending and large-scale asset purchases...ECB officials on Monday signaled they would consider lowering the ECB's main policy rate at next week's meeting if the economy worsens. Officials have also said they would weigh making unlimited loans available to commercial banks for up to one year to ease concerns over Europe's banks.

"In terms of liquidity, there is really the ability to refinance banks. We are ready to do what is needed to ensure our actions get to the final demand," ECB board member Lorenzo Bini Smaghi said in New York.

The ECB's decision to purchase government bonds in May 2010 is among the most controversial of the central bank's 12-year history...The ECB has purchased nearly €160 billion in bonds since May 2010, more than half of those since expanding the program on Aug. 7 to include Spanish and Italian bonds...Those purchases initially led to a dramatic decline in Spanish and Italian bond yields from above 6% to below 5%. But the ECB's purchases represent only a tiny fraction of the combined €2.1 trillion in those countries' outstanding government debt. Yields have again crept above 5%, with Italy posting a more pronounced rise to above 5.5%. Many analysts see 6% as an unsustainable financing level, given the meager growth prospects in those two countries...ECB officials insist they only buy government bonds to ensure that their interest-rate decisions are transmitting smoothly to the economy through the banking system and bond markets. But analysts say that at times, the purchase amounts carry a political message as well...The ECB started buying Spanish and Italian bonds only after securing commitments from those governments that they would enact far-reaching budget cuts and economic overhauls. ECB officials later scaled back the purchases when Italy appeared to backtrack. The latest drop comes as ECB officials ramp up pressure on national parliaments to approve changes to Europe's €440 billion rescue fund, the EFSF, to allow the fund to buy government bonds in secondary markets...

[Demeter]

71. S.&P. Target of Inquiry in Securities

http://www.nytimes.com/2011/09/27/business/sec-weighs-action-against-standard-poors.html?_r=1

Standard & Poor’s, the ratings agency, is under investigation for a complex mortgage security called Delphinus that was issued in 2007 just as the housing market began to collapse, according to a financial filing by the company’s parent, McGraw-Hill (AKA BFEE)...The company said in its filing that it received a so-called Wells notice from the Securities and Exchange Commission on Thursday and it was cooperating with the S.E.C. in the investigation.

If the investigation leads to a case against S.& P., it would be the first federal case against a ratings company for its work evaluating the mortgage securities that toppled the nation’s financial system. Delphinus was included as an example of an egregiously bad deal in a report issued in April by the United States Senate Permanent Subcommittee on Investigations. The S.E.C. may decide to issue a civil injunctive action against S.& P. and may demand monetary fines or disgorgement of fees, the company said.

The mere existence of an investigation does not mean that there will be a law enforcement action. There have been few cases against major institutions in the financial crisis...S.& P. has been under scrutiny for months by the commission as part of its broader look at the mortgage securities that cost banks and investors hundreds of billions of dollars in losses when the housing market collapsed.

The S.E.C. has brought cases against banks — notably Goldman Sachs — over the marketing of such mortgage deals, but has yet to bring one involving the overwhelmingly positive mortgage ratings issued by firms like Standard & Poor’s, Moody’s Investors Service or Fitch Ratings.

*******************************************************************

S.& P. is also at the center of a Justice Department investigation into whether the company put business interests ahead of its duty to accurately rate deals, according to people briefed on that investigation. Standard & Poor’s has been criticized by prominent lawmakers since it downgraded its assessment of the long-term credit of the United States in August, and McGraw-Hill recently announced plans to separate the company into two parts in response to a shareholder uprising.

MUCH MORE DETAIL AT LINK

[DemReadingDU]

76. ProPublica - In a First, SEC Warns Rating Agency

9/27/11 In a First, SEC Warns Rating Agency It May Bring Financial Crisis Lawsuit

Though they’ve been faulted for their central role in the financial crisis, the major credit-ratings agencies have thus far weathered the fallout of the crisis with no sanctions <1> from federal regulators and little more than a bruised reputation.

But that could change soon.

In a formal warning known as a Wells notice, the Securities and Exchange Commission informed credit-ratings firm Standard & Poor’s that it’s considering civil charges <2> tied to the firm’s ratings of a 2007 mortgage-backed securities deal. It’s the first such warning to be given to a credit-ratings agency over matters directly related to the financial crisis.

The deal, known as Delphinus, was one of more than two-dozen collateralized debt obligations <3> linked to the hedge fund Magnetar, whose role in creating and betting against risky CDOs was detailed in a ProPublica investigation <4> last year. Completed in the summer of 2007, Delphinus was one of the last deals done by Magnetar and was underwritten by the Japanese bank Mizuho.

more...
http://www.propublica.org/blog/item/in-first-for-ratings-firms-sec-warns-sp-may-face-charges-financial-crisis

[Demeter]

72. Buffett launches first Berkshire buy-back

Berkshire Hathaway is to use its cash hoard to buy back shares at no more than a 10 per cent premium to the book value

Read more >>
http://link.ft.com/r/6NPSBB/DWI1VL/9MEOW/PFR806/L9FLDZ/D5/t?a1=2011&a2=9&a3=27

[Demeter]

73. UBS urged to use a much sharper axe

Analysts are concerned at the scale of challenges ahead for the Swiss banking group

Read more >>
http://link.ft.com/r/6NPSBB/DWI1VL/9MEOW/PFR806/HY934H/D5/t?a1=2011&a2=9&a3=27

[Demeter]

74. EU urged to probe Hungary mortgage move

Austrian and Italian-owned banks say law aimed at helping holders of Swiss-franc mortgages breaches rules and could set a dangerous precedent

Read more >>
http://link.ft.com/r/S4XZQQ/B5D3UB/Q38E1/4C0KIC/L9FLD4/ID/t?a1=2011&a2=9&a3=27

[Hotler]

75. k&r n/t

[Demeter]

77. SEC Proposes Conflict Ban in Asset-Backed Securities Sales

http://www.bloomberg.com/news/2011-09-19/sec-weighs-conflict-ban-for-sellers-of-asset-backed-securities.html

The U.S. Securities and Exchange Commission proposed barring bets against asset-backed securities by underwriters and securitization participants to root out conflicts of interest that might harm investors...SEC commissioners voted 4-0 SEPT. 19TH to seek comment on a rule, required by the Dodd-Frank Act, that would restrict those who package or sponsor asset-backed securities from engaging in deals that put their interests in conflict with buyers for a year after the first closing of a sale.

“This rule is designed to ensure that those who create and sell asset-backed securities cannot profit by betting against those same securities at the expense of those who buy them,” SEC Chairman Mary Schapiro said before the vote in Washington. “The rule is not intended to interfere with traditional securitization practices.”

Goldman Sachs Group Inc. (GS) paid $550 million last year to settle SEC claims related to its marketing of collateralized debt obligations linked to subprime mortgages. The Wall Street investment firm acknowledged making a mistake in marketing materials and providing “incomplete information” after being accused of creating and selling the securities without disclosing that hedge fund Paulson & Co. helped pick the underlying securities and bet against them.

The proposal is “hopefully an important step forward” for Wall Street reform, said Senator Carl Levin, the Michigan Democrat who pushed to include the rule in Dodd-Frank and led an examination of the Goldman Sachs case as chairman of the Senate’s Permanent Subcommittee on Investigations. “It was as if a car dealer sold a car with bad brakes, then bought insurance that paid off when the car crashed,” Levin said in a statement after today’s vote. Goldman Sachs created “junk investments and sold that junk to their clients” while betting they would fail, said Levin, who sought a U.S. Justice Department review of his panel’s findings after releasing them on April 13...The rule specifies the restriction should be in place for a year from the security’s sale date, and it would also apply to third parties working with the securities’ underwriters...The rule, which will be open for a 90-day comment period, was supposed to be completed in April, according to the law. The SEC’s Dodd-Frank schedule lists it for final adoption between January and June next year.

[Demeter]

78. Delay in New Rules for Retirement Account Advisers

http://bucks.blogs.nytimes.com/2011/09/19/delay-in-new-rules-for-retirement-account-advisers/

After receiving much criticism from the financial services industry and lawmakers, the Labor Department said SEPT. 19TH that it would rethink a proposed new rule requiring more investment professionals to take responsibility for the advice they provide to investors in retirement plans, including 401(k)s and individual retirement accounts.

“This extra time will enable us to strengthen the protections we already proposed and to do it in a way that is more straightforward and more clear,” said Phyllis Borzi, assistant secretary of the Employee Benefits Security Administration, who held a conference call with reporters on Monday. “There was a lot of misinformation about what our rule did and intended to do.”

The agency is trying to amend a 35-year-old rule, part of the Employee Retirement Income Security Act, known as Erisa, which defines when investment advisers become a fiduciary — that is, professionals who put their clients’ interests before their own. Under the current regulations, a person is deemed a fiduciary only if he or she meets a five-part test.

One part of the test states that the person must provide the advice on a regular basis. So if an employer with a 401(k) hires an adviser on a one-time basis for advice, the adviser doesn’t have to act as a fiduciary. The same goes for workers who are nearing retirement and thinking about purchasing an annuity with their I.R.A. or 401(k) savings, Ms. Borzi noted in her testimony before the House Committee on Education and the Workforce in July.

“The narrowness of the existing regulation opened the door to serious problems, and changes in the market since the regulation was issued in 1975 have allowed these problems to proliferate and intensify,” she said in her testimony, which also noted that 401(k) plans did not yet exist and I.R.A.’s had just been authorized when the rule was written....

[Demeter]

79. Staffing Woes Harm Fannie and Freddie Oversight, Government Watchdog Says

http://www.bloomberg.com/news/2011-09-23/staffing-woes-harm-fannie-and-freddie-oversight-government-watchdog-says.html

Regulators lack the staff to effectively oversee Fannie Mae and Freddie Mac and have scaled back examinations of the two mortgage companies as a result, a government watchdog reported...A hiring campaign by the Federal Housing Finance Agency has missed targets and, when completed, will still leave the agency shorthanded. Those conclusions were part of a report released... by the FHFA’s Office of Inspector General.

The report singled out the agency’s monitoring of the housing inventory that Fannie Mae and Freddie Mac own. Despite a surge in foreclosures that has increased Fannie Mae’s inventory sixfold since 2007, “FHFA has yet to conduct a targeted examination” of how the companies manage repossessed homes, known as real-estate owned properties or REO, the report said.

“REO represents a significant financial risk to the enterprises” because they cost money to maintain, the report found. “These costs increase the longer it takes to resell the REO, and all the while the value of the properties may be declining.”

Congress established the FHFA in 2008 to oversee Fannie Mae, Freddie Mac and the Federal Home Loan Banks. The government-sponsored entities, which supply qualified lenders with funds to make home loans, were created to ensure a reliable and abundant source of mortgage credit. Fannie Mae and Freddie Mac were taken under government control after losses from subprime lending threatened them with insolvency...

[Demeter]

80. BofA Case May Be Followed by More Mortgage Suits by Counties

http://www.bloomberg.com/news/2011-09-22/bank-of-america-filing-fee-case-may-open-new-front-in-mortgage-lawsuits.html

Bank of America Corp. (BAC) is among a group of lenders that may face a wave of new lawsuits claiming cash-strapped counties were cheated out of millions of dollars by a system used for more than a decade to register mortgages.

Dallas County District Attorney Craig Watkins said state attorneys general and county officials across the U.S. have expressed interest in his lawsuit against Mortgage Electronic Registration Systems Inc. and Bank of America, filed in Texas state court on Sept. 21. Dallas County could be owed as much as $100 million in filing fees, he said.

“This is a big new front,” said Christopher L. Peterson, associate dean and professor at the University of Utah S.J. Quinney College of Law. “This case is scary because if Dallas wins then there are a lot of other counties around the country that are going to follow.”

[Festivito]

81. Debt: 09/23/2011 14,700,040,072,613.72 (DOWN 26,750,335,340.09) (Fri, DOWN a little.)

(UNDER the new 2011 debt limit of 14.694-trillion dollars by 406.040-billion dollars. Good day.)
Much login trouble at the old Best Western.
(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)
= 10,074,503,215,028.60 + 4,625,536,857,585.03
DOWN 223,062,427.90 + DOWN 26,527,272,912.19

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 $3,195.34 makes 1T$.
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 312,956,192 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 $46,971.56.
A family of three owes $140,914.68. (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 2,206,539,228.95.
The average for the last 30 days would be 1,691,680,075.53.
The average for the last 31 days would be 1,637,109,750.51.
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$/day.
There were 244 reports in 358 days of FY2011 averaging 4.67B$ per report, 3.18B$/day.
Above line should be okay

PROJECTION:
There are 485 days remaining in this Obama 1st term.
By that time the debt could be between 15.4 and 17.2T$.
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)
09/23/2011 14,700,040,072,613.72 BHO (UP 4,073,163,023,700.55 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 +1,138,417,041,722.00 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO
Endof11 +1,160,676,592,817.12 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
09/02/2011 +000,182,220,803.10 ------------********
09/06/2011 -000,290,117,782.20 --- Tue
09/07/2011 +015,583,261,687.60 ------------**********
09/08/2011 -006,211,008,386.30 --
09/09/2011 +000,079,600,651.10 ------------*******
09/12/2011 -000,033,661,156.40 ---- Mon
09/13/2011 -000,041,637,039.50 ----
09/14/2011 +000,269,185,032.20 ------------********
09/15/2011 +011,965,856,345.50 ------------**********
09/16/2011 +000,192,253,298.50 ------------********
09/19/2011 +000,239,468,823.00 ------------******** Mon
09/20/2011 +000,489,658,328.70 ------------********
09/21/2011 -000,003,830,602.70 -----
09/22/2011 -006,079,650,583.40 --
09/23/2011 -000,223,062,427.90 ---

16,118,536,991.30 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=5006267&mesg_id=5006823

[Festivito]

98. Debt: 09/26/2011 14,704,006,072,461.85 (UP 3,965,999,848.19) (Mon, DOWN a little.)

(UNDER the new 2011 debt limit of 14.694-trillion dollars by 410.006-billion dollars. Good day.)
Concentrate, c'mon now.
(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)
= 10,074,320,979,566.40 + 4,629,685,092,895.42
DOWN 182,235,462.20 + UP 4,148,235,310.39

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 $3,195.11 makes 1T$.
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 312,977,792 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 $46,980.99.
A family of three owes $140,942.97. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 21 reports in the last 30 to 31 days.
The average for the last 21 reports is 2,389,422,835.45.
The average for the last 30 days would be 1,672,595,984.82.
The average for the last 31 days would be 1,618,641,275.63.
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$/day.
There were 245 reports in 361 days of FY2011 averaging 4.66B$ per report, 3.16B$/day.
Above line should be okay

PROJECTION:
There are 482 days remaining in this Obama 1st term.
By that time the debt could be between 15.4 and 17.2T$.
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)
09/26/2011 14,704,006,072,461.85 BHO (UP 4,077,129,023,548.74 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 +1,142,383,041,570.10 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO
Endof11 +1,155,041,025,410.21 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
09/06/2011 -000,290,117,782.20 --- Tue
09/07/2011 +015,583,261,687.60 ------------**********
09/08/2011 -006,211,008,386.30 --
09/09/2011 +000,079,600,651.10 ------------*******
09/12/2011 -000,033,661,156.40 ---- Mon
09/13/2011 -000,041,637,039.50 ----
09/14/2011 +000,269,185,032.20 ------------********
09/15/2011 +011,965,856,345.50 ------------**********
09/16/2011 +000,192,253,298.50 ------------********
09/19/2011 +000,239,468,823.00 ------------******** Mon
09/20/2011 +000,489,658,328.70 ------------********
09/21/2011 -000,003,830,602.70 -----
09/22/2011 -006,079,650,583.40 --
09/23/2011 -000,223,062,427.90 ---
09/26/2011 -000,182,235,462.20 --- Mon

15,754,080,726.00 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=5007488&mesg_id=5007740

[Demeter]

82. THE CRISIS CONTINUES...

http://www.ft.com/intl/cms/s/0/8528b748-d932-11e0-884e-00144feabdc0.html#axzz1ZANM8wKM

...Three years after the depths of the worst financial crash in eight decades, it is clearer than ever that the crisis many thought ended two years ago is dragging on – and in some ways, particularly in the US and across the eurozone, intensifying. Businesses and politicians say credit is either unavailable or too expensive. Banks complain that profits are being squeezed so hard that investors are deserting them. Regulators, stranded in the middle, are left wondering whether their natural crisis response – to draft tough new rules – is building a stronger system as intended or rather exacerbating the problems of a fragile global economy...

With hindsight, it is clear the structure of the sector in the years before 2007 was an accident waiting to happen. Institutions had grown distorted in the pursuit of bumper profits. They held little equity capital to protect themselves – and what they did have was in many cases amplified by as much as 50 times with debt instruments. Vast profits were made from borrowing cheaply, often short-term, and assuming that the risks inherent in products from domestic mortgages to complex derivatives were negligible.

Today, those building blocks of profitability – generating returns on equity of up to 25 or 30 per cent, five times the norm for many blue-chip industrial companies – are gone. Many banks now hold triple the equity they used to, and as much as six times the liquid funding. Typical leverage multiples are down to 20. Risks have been reassessed. And profits have slumped. On the banks’ own preferred measure, ROE, which has historically flattered performance by relating returns only to those thin equity cushions, the best they can aspire to now is half the pre-crisis range.

Citigroup, a big US casualty, has shrunk its assets – loans, mortgages and other credit – dramatically. “The world has changed,” says Alberto Verme, joint chief executive of its European operations. “Banks are going back to basics – getting deposits, lending them on and managing what are increasingly important requirements for customers – cash management, trade finance, foreign exchange.”...Regulators in turn have pushed through a raft of rules on the amount of equity and liquidity institutions should hold. Though most are part of the new standards from the Basel committee, the global regulator, to be phased in by 2019, analysts and investors have applied pressure for early compliance. Their maxim for the past couple of years has been simple: the higher the capital ratio – specifically equity as a proportion of risk-weighted assets – the better...“It’s quite clear that the banking system today is safer than it was a few years ago,” says Bob Penn, partner at global law firm Allen & Overy. “Is it regulatory action or simply market response to a crisis?”

Either way, the crisis has found a second wind. The direct costs borne by governments three years ago of bailing out broken banks, combined with the indirect costs of the economic slowdown that accompanied the crash in the sector and long-term overborrowing coming home to roost, have shown up in unsustainable sovereign debt burdens from Europe to the US. That is feeding back into the still-fragile banking system, as parts of institutions’ traditionally safe portfolios of government bond investments have slumped in value...

[Demeter]

83. I am taking the part of the Clik and Clak Single Mother Advisor Today

Erasmus B. Dragone.

Gonna try to patch up the Kid (again) today...

[RUMMYisFROSTED]

89. The World Is Saved!

:woohoo:

[Tansy_Gold]

90. Invest in beauty

Even if you can only afford to invest a little bit of your time

http://differentseasonsjewelry.com/gems/

[Fuddnik]

93. I'm already heavily invested in ugly.

[bread_and_roses]

95. So was the "GS rules the world" trader a hoax?

Now, last night when I watched it, the first time I thought half -way through "this has to be the onion" - not because I don't think "The Street" thinks like that - I do - but because it was being said out loud on what sure looked like a legit interview. So I stopped it, backtracked, looked at the links, etc - at least to my cursory uninformed eye all seemed legit - so I linked again and watched it all the way through.

I see today the question has arisen http://news.yahoo.com/blogs/cutline/bbc-victim-hoax-no-yes-men-154724196.html The "Yes Men" say he's not one of them (but then, they would, wouldn't they?) and the BBC say they're sticking to their estimation that he is who he says he is.

And the BBC said in a statement that it doesn't think he is, either: "We've carried out detailed investigations and can't find any evidence to suggest that the interview with Alessio Rastani was a hoax. He is an independent market trader and one of a range of voices we've had on air to talk about the recession."

So, which is it?

One interesting hypothesis has been put forward:

Felix Salmon of Reuters has another theory: that Rastani, who bears a striking resemblance to a member of the Yes Men, is both a trader and member of the troupe.

[Hotler]

96. It does not matter who he is. It only matters that he.....

spoke the truth. Twelve months my friends. Twelve months.

[bread_and_roses]

97. Oh, I do agree, Hotler -

though I'm too tired or dim to get the "12 mo" reference, but you are spot on about what matters about his statements. To the point:
http://news.yahoo.com/goldman-sachs-eyes-major-cuts-report-085618792.html

BBC business editor Robert Peston said on Twitter that Rastani had merely "voiced what traders working for big firms and funds say in private,"

[Hotler]

100. Sorry about that. Here is the twelve month reference.

"The collapse is coming; Goldman Sachs rules the world; the Eurozone is toast; the guys who matter don't give a shit as long as they can make money; the developing situation is like a cancer - ignore it and it will kill you (and the implication is that even if you pay attention it will kill you anyway); your savings have 12 months to live."