One thing that could force feds hands is the large foreign debt holders (most notably) China, Japan, Russia, consistently refusing to buy and aggressively dumping our bonds and dollar onto world markets.
Anyone else have local real estate market reports to share? Northwest Ohio/SE Michigan is still in toilet.
I kind of miss timetopay in this thread. Must say he drove me batty with his lectures about us bears being anti-Americans.
Come back ttp, all of us bears are again here waving our pom-poms cheering the market, housing and dollar lower and rooting gold and oil higher.
:missingte
Went into a new housing development which continues to add condo units. They aren't offering shit, saying this area (Jersey) is immune from all this. The market might be better here but isn't immune especially when people find mortgages harder to get. And when will they need to raise cash to stave off bankruptcy. But as I hammered the sales lady just to get a peak at what they are willing to do, she dug in....They have a fingers crossed mentality.
Frankie, my top stock holding is a company named silver standard resources (ssri).
Also an advocate of owning physical gold & silver.
Most in favor of owning physical gold and using certain stocks such as ssri, paas, slw as avenues to gain exposure to silver ownership.
Last thing the govt wants is for market to take a swan dive during an election year.
They will cut down every tree on the planet and print as much money as it takes, but there are events that could stop this from happening.
In the end, the market is larger than its players, so eventually it will run its course regardless what fed or govt does. Be careful trying to short the market and things similar. If you are a small investor, just get your hands on some gold bullion and a few silver mining shares and sit tight the next 5-10 years.
Being a huge supporter of Ron Paul, if economy and stock market takes a nosedive, his message will be given greater attention. Right now, thats more important to me than worrying about people losing their shirts owning real estate or 401k plans.
Also an advocate of owning physical gold & silver.
Most in favor of owning physical gold and using certain stocks such as ssri, paas, slw as avenues to gain exposure to silver ownership.
Last thing the govt wants is for market to take a swan dive during an election year.
They will cut down every tree on the planet and print as much money as it takes, but there are events that could stop this from happening.
In the end, the market is larger than its players, so eventually it will run its course regardless what fed or govt does. Be careful trying to short the market and things similar. If you are a small investor, just get your hands on some gold bullion and a few silver mining shares and sit tight the next 5-10 years.
Being a huge supporter of Ron Paul, if economy and stock market takes a nosedive, his message will be given greater attention. Right now, thats more important to me than worrying about people losing their shirts owning real estate or 401k plans.
15% gold coins
5% silver bags and bars
25% energy (mostly canroys and related service industries)
10% gold producer stocks
10% base metal producer stocks and related servicing industries
5% alternative energy stocks
8% large cap tech stocks
8% infrastructure stocks
10% inter'l stocks(mostly china and europe)
4% US Dollar.....like to keep around 10% to seize on an opportunity
here's his article on liquidity and "injections"
-------------------------------------------------------------------------------
October 8, 2007
The Bag Will Not Inflate, And Liquidity Will Not Be Flowing
John P. Hussman, Ph.D.
All rights reserved and actively enforced.
Reprint Policy
As expected, the Fed entered $28 billion of repurchases on Thursday to roll over existing repos that were due on that day. The Fed did not “add” or “inject” reserves to the banking system, nor has any amount of overall reserves been added in recent weeks. There have been no “permanent” open market operations in recent months, and the “temporary” ones have been pure rollovers of existing repos. Aside from $3 billion that banks briefly borrowed from the Fed a few weeks ago, the Fed has not “added liquidity” through the discount window either. The total outstanding amount borrowed by the banking system through the discount window fell to just $202 million last week. Meanwhile, the total reserves of the banking system remain about $45 billion, nearly all of which represents temporary repurchase agreements that are continuously rolled over as they become due.
Do investors honestly believe that $45 billion of reserves and $202 million of discount window borrowings control a $6.3 trillion banking system and a $13.8 trillion economy? Bank reserves hardly vary from that $40-$45 billion level, and have been gradually falling since the early 1990's. Nor are reserves a dynamic pool of money that banks draw off and the Fed replenishes - if that were the case, we would continuously observe new "permanent" open market operations. But we don't. Bank reserves are essentially stagnant water. Indeed, permanent open market operations closely coincide with the $30-$50 billion of currency the Fed predictably issues each year, which is outside of the banking system and partly in your wallet (with the words "Federal Reserve Note" at the top).
Look at the data.
Fed Open Market Operations: http://www.ny.frb.org/markets/openmarket.html
Total Discount Window Borrowings: http://research.stlouisfed.org/fred2/data/TOTBORR.txt
Total Bank Reserves: http://research.stlouisfed.org/fred2/data/TRARR.txt
As a side note, roughly $30 billion of repos will roll over this Thursday; $24 billion of 7 day repos from last week, and another $6 billion in 14 day repos from the week before.
The reason all of this is worth noting is because investors are putting so much false hope on the notion that the Fed is “injecting” all sorts of “liquidity” into the markets. Analysts discuss this as fact, when they evidently have not even looked at the facts. They literally make things up and present their claims as truth. At one particular moment last week, a guest on one of the CNBC morning programs spoke authoritatively about the enormous amount of liquidity the Fed is pumping into the economy, and how “all that liquidity has to go someplace, and a lot of it is finding its way into the stock market.” At that point I stopped watching out of the instinctive will to live.
My immediate objection to that statement, of course, is that there is no liquidity being “injected” at all. Again, the Fed certainly has a psychological effect on investors, provides coordinating signals to banks, manages an interest rate on a very stable $40-$45 billion pool of reserves through its “temporary” open market operations, facilitates the predictable issuance of $30-$50 billion annually of currency in circulation through its “permanent” open market operations, and even has a useful role to play in providing temporary liquidity in the face of seasonal factors (most notably, the year-2000 turn). But the Fed does not provide meaningful amounts of ongoing liquidity to the $6.3 trillion banking system (the quantity of loans has literally zero relationship with the small, stable pool of bank reserves, which has been falling since the early 1990's). Nor does the Fed control the $13.8 trillion U.S. economy. Foreign purchases of U.S. Treasuries outweigh the Fed's actions many, many times over.
My second objection is that the stock market is not some balloon into which money “flows into” or “out of.” Every purchase is matched by a sale. Every sale is matched by a purchase. Stock prices move because the buyer is more eager than the seller or vice versa. A purchase doesn't put money “into” the market, nor does a sale take money “out.” Even in the case of new issues, the proceeds go to the issuing company. Money “on the sidelines” stays on the sidelines. Stocks, bonds, commercial paper and currency simply change hands between Ricky, Mickey and Nicky. There is no stock market balloon holding all the money that people invest. There are only certificates traded between people at prices on which they mutually agree from day to day.
You can count on the fact that if you save $100, somebody, somewhere in the world ends up acquiring $100 worth of tangible investment goods or services. This is a well-known economic identity, and you can prove it. Even if you save $100 by stuffing it under your mattress, it must be the case that total spending has fallen short of total output by that $100, in which case we know that somebody has involuntarily accumulated $100 in “inventory investment.” Even if your $100 went “into” the stock market, the fact is that your $100 immediately went “out” of the stock market in the hands of the seller, and then to someone else, and someone else, until your $100 eventually made it into the hands of someone who used it to buy (or in the case of inventory investment, accumulate) real goods and services.
You know how flight safety demonstrations always include the phrase “even though the bag will not inflate, oxygen will be flowing”? Well the same is not true of “Fed liquidity” and the stock market. There is no bag that inflates, and if you look at the data, no liquidity is flowing either.
The stock market has advanced in recent weeks on very dull volume and relatively tepid breadth. This type of action is typically associated with short-squeezes and a backing-off of sellers, without robust underlying demand. If you look at the dull price-volume behavior, the trailing breadth in the recent rally, and the growing divergences between the major indices and other market internals, it is not clear that buyers are particularly eager.
Market Climate
As of last week, the Market Climate for stocks was characterized by unfavorable valuations, and still unfavorable market action on the basis of market internals. The advance in recent weeks has evidently been driven by the hope of people who are already holding stocks, not by any measurable increase in the speculative demand of new investors. Historically, that distinction has been vital to the sustainability of market strength. Any renewed eagerness to sell in those situations isn't met with matching buying interest, which can force greater price adjustments to match sellers to buyers (which have to be identical - there are never "more sellers than buyers" or "more buyers than sellers")
Meanwhile, the market has already reestablished an overvalued, overbought, overbullish combination that has historically been associated with average returns below Treasury bills even when market action has otherwise been favorable. As I've noted before, these poor average returns are not the result of relentless market losses. Rather, historical overvalued, overbought, overbullish environments have generally been associated with a mild upward drift followed by steep, abrupt losses that typically wipe out weeks or months of upside progress within a handful of trading sessions. Treasury bond yields are also pushing higher. Though 10-year yields are not quite above their levels of say, 6 months ago, any further upward pressure on long-term yields would put the stock market into a particularly hazardous set of conditions.
We do not have sufficient evidence of investment merit (favorable valuations) or reliable speculative merit (favorable market action) to justify an exposure to market fluctuations at present. Meanwhile, however, we do identify a variety of individual stocks that have favorable valuations and market action on our measures. We continue to be fully invested in a broadly diversified portfolio of those stocks, with an offsetting short position in the S&P 500 and Russell 2000 indices to hedge the impact of general market fluctuations. As usual, our returns when fully hedged are largely driven by the difference in performance between the stocks we hold and the indices that we use to hedge. This difference may be positive or negative, but since the inception of the Fund in 2000, it has accounted for the majority of returns in the Strategic Growth Fund.
In bonds, the Market Climate was characterized last week by unfavorable yield levels and relatively neutral market action. Overall economic pressures are likely to favor slower growth, and a large wave of mortgage resets due this month will probably raise credit concerns, to the benefit of default-free securities. On the negative side, inflation pressures have been quietly growing in China, while the recent weakness in the U.S. dollar is also likely to feed into import price pressures. Wage inflation and unit labor costs remain relatively firm as well. It's also notable that market yields have drifted higher since the Fed reduced its target for the Fed Funds rate.
Given this combination of factors, we're clearly most comfortable with inflation protected securities, which will tend to benefit from downward pressure on real inflation-adjusted yields, without an exposure to any short-term inflation surprises that might emerge. Overall, my impression is that we're not likely to see much sustained inflation pressure as long as credit problems are elevated (since high credit risk tends to lower monetary velocity), but with yield levels generally low in the first place, there's little reason to accept a great deal of interest rate risk through duration exposure in straight Treasuries.
The Strategic Total Return Fund continues to carry a duration of about 3 years, mostly in TIPS, with about 15% of assets in precious metals shares, where the overall Market Climate remains favorable. As usual, we tend to trade around these positions in response to unusual price strength or weakness, but we have been well served by holding conservative, core positions in TIPS and precious metals given moderating economic growth and continued U.S. dollar risk.
-------------------------------------------------------------------------------
October 8, 2007
The Bag Will Not Inflate, And Liquidity Will Not Be Flowing
John P. Hussman, Ph.D.
All rights reserved and actively enforced.
Reprint Policy
As expected, the Fed entered $28 billion of repurchases on Thursday to roll over existing repos that were due on that day. The Fed did not “add” or “inject” reserves to the banking system, nor has any amount of overall reserves been added in recent weeks. There have been no “permanent” open market operations in recent months, and the “temporary” ones have been pure rollovers of existing repos. Aside from $3 billion that banks briefly borrowed from the Fed a few weeks ago, the Fed has not “added liquidity” through the discount window either. The total outstanding amount borrowed by the banking system through the discount window fell to just $202 million last week. Meanwhile, the total reserves of the banking system remain about $45 billion, nearly all of which represents temporary repurchase agreements that are continuously rolled over as they become due.
Do investors honestly believe that $45 billion of reserves and $202 million of discount window borrowings control a $6.3 trillion banking system and a $13.8 trillion economy? Bank reserves hardly vary from that $40-$45 billion level, and have been gradually falling since the early 1990's. Nor are reserves a dynamic pool of money that banks draw off and the Fed replenishes - if that were the case, we would continuously observe new "permanent" open market operations. But we don't. Bank reserves are essentially stagnant water. Indeed, permanent open market operations closely coincide with the $30-$50 billion of currency the Fed predictably issues each year, which is outside of the banking system and partly in your wallet (with the words "Federal Reserve Note" at the top).
Look at the data.
Fed Open Market Operations: http://www.ny.frb.org/markets/openmarket.html
Total Discount Window Borrowings: http://research.stlouisfed.org/fred2/data/TOTBORR.txt
Total Bank Reserves: http://research.stlouisfed.org/fred2/data/TRARR.txt
As a side note, roughly $30 billion of repos will roll over this Thursday; $24 billion of 7 day repos from last week, and another $6 billion in 14 day repos from the week before.
The reason all of this is worth noting is because investors are putting so much false hope on the notion that the Fed is “injecting” all sorts of “liquidity” into the markets. Analysts discuss this as fact, when they evidently have not even looked at the facts. They literally make things up and present their claims as truth. At one particular moment last week, a guest on one of the CNBC morning programs spoke authoritatively about the enormous amount of liquidity the Fed is pumping into the economy, and how “all that liquidity has to go someplace, and a lot of it is finding its way into the stock market.” At that point I stopped watching out of the instinctive will to live.
My immediate objection to that statement, of course, is that there is no liquidity being “injected” at all. Again, the Fed certainly has a psychological effect on investors, provides coordinating signals to banks, manages an interest rate on a very stable $40-$45 billion pool of reserves through its “temporary” open market operations, facilitates the predictable issuance of $30-$50 billion annually of currency in circulation through its “permanent” open market operations, and even has a useful role to play in providing temporary liquidity in the face of seasonal factors (most notably, the year-2000 turn). But the Fed does not provide meaningful amounts of ongoing liquidity to the $6.3 trillion banking system (the quantity of loans has literally zero relationship with the small, stable pool of bank reserves, which has been falling since the early 1990's). Nor does the Fed control the $13.8 trillion U.S. economy. Foreign purchases of U.S. Treasuries outweigh the Fed's actions many, many times over.
My second objection is that the stock market is not some balloon into which money “flows into” or “out of.” Every purchase is matched by a sale. Every sale is matched by a purchase. Stock prices move because the buyer is more eager than the seller or vice versa. A purchase doesn't put money “into” the market, nor does a sale take money “out.” Even in the case of new issues, the proceeds go to the issuing company. Money “on the sidelines” stays on the sidelines. Stocks, bonds, commercial paper and currency simply change hands between Ricky, Mickey and Nicky. There is no stock market balloon holding all the money that people invest. There are only certificates traded between people at prices on which they mutually agree from day to day.
You can count on the fact that if you save $100, somebody, somewhere in the world ends up acquiring $100 worth of tangible investment goods or services. This is a well-known economic identity, and you can prove it. Even if you save $100 by stuffing it under your mattress, it must be the case that total spending has fallen short of total output by that $100, in which case we know that somebody has involuntarily accumulated $100 in “inventory investment.” Even if your $100 went “into” the stock market, the fact is that your $100 immediately went “out” of the stock market in the hands of the seller, and then to someone else, and someone else, until your $100 eventually made it into the hands of someone who used it to buy (or in the case of inventory investment, accumulate) real goods and services.
You know how flight safety demonstrations always include the phrase “even though the bag will not inflate, oxygen will be flowing”? Well the same is not true of “Fed liquidity” and the stock market. There is no bag that inflates, and if you look at the data, no liquidity is flowing either.
The stock market has advanced in recent weeks on very dull volume and relatively tepid breadth. This type of action is typically associated with short-squeezes and a backing-off of sellers, without robust underlying demand. If you look at the dull price-volume behavior, the trailing breadth in the recent rally, and the growing divergences between the major indices and other market internals, it is not clear that buyers are particularly eager.
Market Climate
As of last week, the Market Climate for stocks was characterized by unfavorable valuations, and still unfavorable market action on the basis of market internals. The advance in recent weeks has evidently been driven by the hope of people who are already holding stocks, not by any measurable increase in the speculative demand of new investors. Historically, that distinction has been vital to the sustainability of market strength. Any renewed eagerness to sell in those situations isn't met with matching buying interest, which can force greater price adjustments to match sellers to buyers (which have to be identical - there are never "more sellers than buyers" or "more buyers than sellers")
Meanwhile, the market has already reestablished an overvalued, overbought, overbullish combination that has historically been associated with average returns below Treasury bills even when market action has otherwise been favorable. As I've noted before, these poor average returns are not the result of relentless market losses. Rather, historical overvalued, overbought, overbullish environments have generally been associated with a mild upward drift followed by steep, abrupt losses that typically wipe out weeks or months of upside progress within a handful of trading sessions. Treasury bond yields are also pushing higher. Though 10-year yields are not quite above their levels of say, 6 months ago, any further upward pressure on long-term yields would put the stock market into a particularly hazardous set of conditions.
We do not have sufficient evidence of investment merit (favorable valuations) or reliable speculative merit (favorable market action) to justify an exposure to market fluctuations at present. Meanwhile, however, we do identify a variety of individual stocks that have favorable valuations and market action on our measures. We continue to be fully invested in a broadly diversified portfolio of those stocks, with an offsetting short position in the S&P 500 and Russell 2000 indices to hedge the impact of general market fluctuations. As usual, our returns when fully hedged are largely driven by the difference in performance between the stocks we hold and the indices that we use to hedge. This difference may be positive or negative, but since the inception of the Fund in 2000, it has accounted for the majority of returns in the Strategic Growth Fund.
In bonds, the Market Climate was characterized last week by unfavorable yield levels and relatively neutral market action. Overall economic pressures are likely to favor slower growth, and a large wave of mortgage resets due this month will probably raise credit concerns, to the benefit of default-free securities. On the negative side, inflation pressures have been quietly growing in China, while the recent weakness in the U.S. dollar is also likely to feed into import price pressures. Wage inflation and unit labor costs remain relatively firm as well. It's also notable that market yields have drifted higher since the Fed reduced its target for the Fed Funds rate.
Given this combination of factors, we're clearly most comfortable with inflation protected securities, which will tend to benefit from downward pressure on real inflation-adjusted yields, without an exposure to any short-term inflation surprises that might emerge. Overall, my impression is that we're not likely to see much sustained inflation pressure as long as credit problems are elevated (since high credit risk tends to lower monetary velocity), but with yield levels generally low in the first place, there's little reason to accept a great deal of interest rate risk through duration exposure in straight Treasuries.
The Strategic Total Return Fund continues to carry a duration of about 3 years, mostly in TIPS, with about 15% of assets in precious metals shares, where the overall Market Climate remains favorable. As usual, we tend to trade around these positions in response to unusual price strength or weakness, but we have been well served by holding conservative, core positions in TIPS and precious metals given moderating economic growth and continued U.S. dollar risk.
RE market crash is yesterdays news.....it was a fantastic call by many, and my biggest windfall by far. May still be some profits to be had on the downside, but I am out completely. In fact, got my eye on going long.....albeit still a few years out.
do not discount the effects hyperinflation will have on the RE market....will not save it, but may limit any HUGE further downside....my local area in No. Ca. was the first to boom, and the first to tank....currently down 30% since peak of AUG 05, and shows no sign of slowing. As soon as the slide stops locally, that will be the national bottom.
As always, the time to buy will be when everybody is down on RE, including realtors, talking heads, etc...same thing happened in 97 and I was buying, will happen again, just have to be patient.
the big question is what will be the next bubble to profit from? I think it is commodities.....throw in peak oil, debasement of all world currencies....whew!
PS - don't want to sound like a raging bull, but it is what it is. I am hip to the scam and understand the lies and deception. Nothing would make me happier than to see Mr. Paul or somebody else like him elected to straighten this whole mess out. Until that happens I am going to try and profit off of it...I have to...inflation at 10%
do not discount the effects hyperinflation will have on the RE market....will not save it, but may limit any HUGE further downside....my local area in No. Ca. was the first to boom, and the first to tank....currently down 30% since peak of AUG 05, and shows no sign of slowing. As soon as the slide stops locally, that will be the national bottom.
As always, the time to buy will be when everybody is down on RE, including realtors, talking heads, etc...same thing happened in 97 and I was buying, will happen again, just have to be patient.
the big question is what will be the next bubble to profit from? I think it is commodities.....throw in peak oil, debasement of all world currencies....whew!
PS - don't want to sound like a raging bull, but it is what it is. I am hip to the scam and understand the lies and deception. Nothing would make me happier than to see Mr. Paul or somebody else like him elected to straighten this whole mess out. Until that happens I am going to try and profit off of it...I have to...inflation at 10%
the title just grabbed my attention :aktion033
asia not lookin too bad yet 3% or so haircut on average as would be expected and yen carry trade unwinding subsiding with some resbound
--------------------------------------------------------------------
Bulls still on parade despite big plunge
Earnings warnings, a weak housing market and $90 oil should have investors running for the hills. But they're not.
October 21 2007: 11:17 AM EDT
<!--startclickprintexclude-->
<!--endclickprintexclude--><!-- CONTENT -->
NEW YORK (AP) -- With all the predicaments facing the markets these days -- credit growing scarcer, oil near a record $90 a barrel, home prices in the dumps -- it would be logical if investors were shoving money under their mattresses, instead of into stocks.
But logic doesn't always prevail on Wall Street.
<!-- REAP --><!--startclickprintexclude--><!--endclickprintexclude--><!-- /REAP -->The Dow Jones industrial average plunged almost 400 points on Friday, its fifth-straight loss for the week. Yet, Wall Street's pundits did not waver on projections that share prices will rise again after companies finish reporting quarterly financial results.
"There is a lot more people who are bullish than bearish, and there's a mentality that even a pullback would create an opportunity to buy," said Todd Leone, managing director of equity trading at Cowen & Co.
Why is Wall Street so optimistic, even though stocks took a hit Friday, with the Dow dropping 366.94, or 2.64 percent, to 13,522.02?
-----------------------------------------------------------------------
Come wit it now!
Come wit it now!
The microphone explodes, shattering the molds
Either drop tha hits like de la O or get tha fuck off tha commode
Wit tha sure shot, sure ta make tha bodies drop
Drop an don't copy yo, don't call this a co-op
Terror rains drenchin', quenchin' tha thirst of tha power dons
That five sided fist-a-gon
Tha rotten sore on tha face of mother earth gets bigger
Tha triggers cold empty ya purse
Rally round tha family! With a pocket full of shells
They rally round tha family! With a pocket full of shells
They rally round tha family! With a pocket full of shells
They rally round tha family! With a pocket full of shells
Weapons not food, not homes, not shoes
Not need, just feed the war cannibal animal
I walk tha corner to tha rubble that used to be a library
Line up to tha mind cemetary now
What we don't know keeps tha contracts alive an movin'
They don't gotta burn tha books they just remove 'em
While arms warehouses fill as quick as tha cells
Rally round tha family, pockets full of shells
Rally round tha family! With a pocket full of shells
They rally round tha family! With a pocket full of shells
They rally round tha family! With a pocket full of shells
They rally round tha family! With a pocket full of shells
Bulls on parade
Come wit it now!
Come wit it now!
Bulls on parade!
Bulls on parade!
Bulls on parade!
Bulls on parade!
Bulls on parade!
<!--endclickprintexclude--><!-- /REAP -->
asia not lookin too bad yet 3% or so haircut on average as would be expected and yen carry trade unwinding subsiding with some resbound
--------------------------------------------------------------------
Bulls still on parade despite big plunge
Earnings warnings, a weak housing market and $90 oil should have investors running for the hills. But they're not.
October 21 2007: 11:17 AM EDT
<!--startclickprintexclude-->
<!--endclickprintexclude--><!-- CONTENT -->
NEW YORK (AP) -- With all the predicaments facing the markets these days -- credit growing scarcer, oil near a record $90 a barrel, home prices in the dumps -- it would be logical if investors were shoving money under their mattresses, instead of into stocks.
But logic doesn't always prevail on Wall Street.
<!-- REAP --><!--startclickprintexclude--><!--endclickprintexclude--><!-- /REAP -->The Dow Jones industrial average plunged almost 400 points on Friday, its fifth-straight loss for the week. Yet, Wall Street's pundits did not waver on projections that share prices will rise again after companies finish reporting quarterly financial results.
"There is a lot more people who are bullish than bearish, and there's a mentality that even a pullback would create an opportunity to buy," said Todd Leone, managing director of equity trading at Cowen & Co.
Why is Wall Street so optimistic, even though stocks took a hit Friday, with the Dow dropping 366.94, or 2.64 percent, to 13,522.02?
-----------------------------------------------------------------------
Come wit it now!
Come wit it now!
The microphone explodes, shattering the molds
Either drop tha hits like de la O or get tha fuck off tha commode
Wit tha sure shot, sure ta make tha bodies drop
Drop an don't copy yo, don't call this a co-op
Terror rains drenchin', quenchin' tha thirst of tha power dons
That five sided fist-a-gon
Tha rotten sore on tha face of mother earth gets bigger
Tha triggers cold empty ya purse
Rally round tha family! With a pocket full of shells
They rally round tha family! With a pocket full of shells
They rally round tha family! With a pocket full of shells
They rally round tha family! With a pocket full of shells
Weapons not food, not homes, not shoes
Not need, just feed the war cannibal animal
I walk tha corner to tha rubble that used to be a library
Line up to tha mind cemetary now
What we don't know keeps tha contracts alive an movin'
They don't gotta burn tha books they just remove 'em
While arms warehouses fill as quick as tha cells
Rally round tha family, pockets full of shells
Rally round tha family! With a pocket full of shells
They rally round tha family! With a pocket full of shells
They rally round tha family! With a pocket full of shells
They rally round tha family! With a pocket full of shells
Bulls on parade
Come wit it now!
Come wit it now!
Bulls on parade!
Bulls on parade!
Bulls on parade!
Bulls on parade!
Bulls on parade!
<!--endclickprintexclude--><!-- /REAP -->
<SMALL>Forbes.com| 10/21/2007 | Dennis Moore</SMALL>
AFX News Limited IMF MEETING IIF tentatively backs US banks' 'superfund' 10.21.07, 1:57 PM ET
WASHINGTON (Thomson Financial) - A trade group of the world's biggest international banks lent its tentative support today to the plan by top US banks to set up a 'superfund' for the mortgage backed securities now troubling credit markets.
The Institute of International Finance said it 'welcomed market initiatives aimed at accelerating the restoration of confidence and liquidity' to the credit markets.
However, it added that it is also 'premature to make a firm judgment as not all the details are known.'
At a Washington news conference on the sidelines of the IMF-G7 meetings here, Deutsche Bank (nyse: DB - news - people ) head Josef Ackermann, who chairs the IIF, said the recent crisis 'has been a necessary albeit painful adjustment in some of our credit markets.'
He offered repeated reassurance about the banks themselves. 'The system itself is healthy, the banks are strong and we have not taken risks we could not adjust,' was a typical statement.
Referring to the various investment vehicles and asset backed securities on bank balance sheets, Ackermann said: 'If we mark them down now, if we take the hit, I have no doubt we can overcome this crisis.'
The IIF announced a six-month review of banking practices in response to the crisis, including risk management, conduits, valuation, ratings and transparency. It also raised the possibility of some kind of global joint monitoring system with national regulators.
On the economic outlook, Citibank president William Rhodes said: 'We cannot preclude the risk of an even more substantial slowdown in the advanced economies.'
The principal danger is the US housing market, he said - not subprime but the whole housing industry.
Emerging markets got a more optimistic forecast. They have been remarkably resilient, said the IIF in an analysis released today. It predicted net private capital flows of 620 bln usd to emerging markets for 2007 and 593 bln usd in 2008.
The outlook is comparatively so good that 'they have almost become a safe haven now and there is the risk of them developing asset bubbles,' according to the IIF Managing Director Charles Dallara
AFX News Limited IMF MEETING IIF tentatively backs US banks' 'superfund' 10.21.07, 1:57 PM ET
WASHINGTON (Thomson Financial) - A trade group of the world's biggest international banks lent its tentative support today to the plan by top US banks to set up a 'superfund' for the mortgage backed securities now troubling credit markets.
The Institute of International Finance said it 'welcomed market initiatives aimed at accelerating the restoration of confidence and liquidity' to the credit markets.
However, it added that it is also 'premature to make a firm judgment as not all the details are known.'
At a Washington news conference on the sidelines of the IMF-G7 meetings here, Deutsche Bank (nyse: DB - news - people ) head Josef Ackermann, who chairs the IIF, said the recent crisis 'has been a necessary albeit painful adjustment in some of our credit markets.'
He offered repeated reassurance about the banks themselves. 'The system itself is healthy, the banks are strong and we have not taken risks we could not adjust,' was a typical statement.
Referring to the various investment vehicles and asset backed securities on bank balance sheets, Ackermann said: 'If we mark them down now, if we take the hit, I have no doubt we can overcome this crisis.'
The IIF announced a six-month review of banking practices in response to the crisis, including risk management, conduits, valuation, ratings and transparency. It also raised the possibility of some kind of global joint monitoring system with national regulators.
On the economic outlook, Citibank president William Rhodes said: 'We cannot preclude the risk of an even more substantial slowdown in the advanced economies.'
The principal danger is the US housing market, he said - not subprime but the whole housing industry.
Emerging markets got a more optimistic forecast. They have been remarkably resilient, said the IIF in an analysis released today. It predicted net private capital flows of 620 bln usd to emerging markets for 2007 and 593 bln usd in 2008.
The outlook is comparatively so good that 'they have almost become a safe haven now and there is the risk of them developing asset bubbles,' according to the IIF Managing Director Charles Dallara
AP
Fed Official: Bank Will Protect Economy
Monday October 22, 11:34 am ET
By Jeannine Aversa, AP Economics Writer <TABLE height=4 cellSpacing=0 cellPadding=0 border=0><TBODY><TR><TD height=4></TD></TR></TBODY></TABLE>Kroszner: Federal Reserve Will Act As Needed to Protect US Economy From Market Turmoil
WASHINGTON (AP) -- The Federal Reserve will do whatever is necessary to prevent damage to the economy from the credit crunch that has gripped Wall Street, a Fed official said Monday, warning it will take time for financial markets to fully recover from the strains.
Fed Governor Randall Kroszner's remarks came as fears about the credit crunch and a painful housing slump have gripped investors in recent months, causing stocks to nosedrive. Wall Street took another sharp plunge -- 366 points -- on Friday. The Dow Jones industrials were down again in trading Monday, though not as sharply as Friday.
"The Federal Reserve will continue to monitor developments in financial markets and act as needed to support the effective functioning of these markets and to foster sustainable economic growth and price stability," Kroszner said in a speech here to the Institute of International Bankers.
It is the same pledge that Federal Reserve Chairman Ben Bernanke and other central bank colleagues have been making in the past months. That is, to keep the economy growing and inflation under control.
Some economists believe the Fed will lower an important interest rate at the end of a two-day meeting next Wednesday, to help bolster economic activity. But others, citing the economy's resiliency and worries about an inflation flareup, think the Fed will leave rates alone. Oil prices, which had surged to record highs in recent weeks, have eased a bit but are still hovering above $86 a barrel.
It's a delicate situation facing the Fed.
To prevent the ill effects of the credit crunch and housing troubles from sinking the economy, the Fed in September sliced a key interest rate by a bold one-half percentage point to 4.75 percent. It was the first rate cut in more than four years.
Before that aggressive move, the Fed had taken other actions to deal with the credit crises, which had taken a turn for the worse in August. The Fed pumped billions of dollars into the financial system to help banks and other institutions get over the credit hump. It also reduced its lending rate to banks.
"I should emphasize that the purpose of these actions was not to insulate financial institutions from the consequences of their business decisions, but rather to facilitate the orderly function of markets more broadly in the face of risks to the overall economy," Kroszner said.
"I believe that this provision of liquidity has contributed, at least in part, to the recent improvements, we have seen in the functioning of financial markets," he added.
Still, the financial situation is fragile, and it will take time for the markets to fully recover. "Strains ... persist even now," Kroszner said.
Federal Reserve: http://www.federalreserve.gov
Fed Official: Bank Will Protect Economy
Monday October 22, 11:34 am ET
By Jeannine Aversa, AP Economics Writer <TABLE height=4 cellSpacing=0 cellPadding=0 border=0><TBODY><TR><TD height=4></TD></TR></TBODY></TABLE>Kroszner: Federal Reserve Will Act As Needed to Protect US Economy From Market Turmoil
WASHINGTON (AP) -- The Federal Reserve will do whatever is necessary to prevent damage to the economy from the credit crunch that has gripped Wall Street, a Fed official said Monday, warning it will take time for financial markets to fully recover from the strains.
Fed Governor Randall Kroszner's remarks came as fears about the credit crunch and a painful housing slump have gripped investors in recent months, causing stocks to nosedrive. Wall Street took another sharp plunge -- 366 points -- on Friday. The Dow Jones industrials were down again in trading Monday, though not as sharply as Friday.
"The Federal Reserve will continue to monitor developments in financial markets and act as needed to support the effective functioning of these markets and to foster sustainable economic growth and price stability," Kroszner said in a speech here to the Institute of International Bankers.
It is the same pledge that Federal Reserve Chairman Ben Bernanke and other central bank colleagues have been making in the past months. That is, to keep the economy growing and inflation under control.
Some economists believe the Fed will lower an important interest rate at the end of a two-day meeting next Wednesday, to help bolster economic activity. But others, citing the economy's resiliency and worries about an inflation flareup, think the Fed will leave rates alone. Oil prices, which had surged to record highs in recent weeks, have eased a bit but are still hovering above $86 a barrel.
It's a delicate situation facing the Fed.
To prevent the ill effects of the credit crunch and housing troubles from sinking the economy, the Fed in September sliced a key interest rate by a bold one-half percentage point to 4.75 percent. It was the first rate cut in more than four years.
Before that aggressive move, the Fed had taken other actions to deal with the credit crises, which had taken a turn for the worse in August. The Fed pumped billions of dollars into the financial system to help banks and other institutions get over the credit hump. It also reduced its lending rate to banks.
"I should emphasize that the purpose of these actions was not to insulate financial institutions from the consequences of their business decisions, but rather to facilitate the orderly function of markets more broadly in the face of risks to the overall economy," Kroszner said.
"I believe that this provision of liquidity has contributed, at least in part, to the recent improvements, we have seen in the functioning of financial markets," he added.
Still, the financial situation is fragile, and it will take time for the markets to fully recover. "Strains ... persist even now," Kroszner said.
Federal Reserve: http://www.federalreserve.gov
chinas alibaba.com IPO goes Nov. 6th
http://www.businessweek.com/globalbiz/content/oct2007/gb20071022_827643.htm
http://www.businessweek.com/globalbiz/content/oct2007/gb20071022_827643.htm
aapl here to save the day
Apple Reports Fourth Quarter Results
Monday October 22, 4:30 pm ET <table border="0" cellpadding="0" cellspacing="0" height="4"><tbody><tr><td height="4">
</td></tr></tbody></table>Quarterly Mac Sales Set New Record<table border="0" cellpadding="0" cellspacing="0" height="4"><tbody><tr><td height="4">
</td></tr></tbody></table>Quarterly iPhone Sales Exceed One Million
CUPERTINO, Calif., Oct. 22 /PRNewswire-FirstCall/ -- Apple® today announced financial results for its fiscal 2007 fourth quarter ended September 29, 2007. The Company posted revenue of $6.22 billion and net quarterly profit of $904 million, or $1.01 per diluted share. These results compare to revenue of $4.84 billion and net quarterly profit of $542 million, or $.62 per diluted share, in the year-ago quarter. Gross margin was 33.6 percent, up from 29.2 percent in the year-ago quarter. International sales accounted for 40 percent of the quarter's revenue.
USD in the gutter good. :aktion033
ope:arty:
Apple Reports Fourth Quarter Results
Monday October 22, 4:30 pm ET <table border="0" cellpadding="0" cellspacing="0" height="4"><tbody><tr><td height="4">
</td></tr></tbody></table>Quarterly Mac Sales Set New Record<table border="0" cellpadding="0" cellspacing="0" height="4"><tbody><tr><td height="4">
</td></tr></tbody></table>Quarterly iPhone Sales Exceed One Million
CUPERTINO, Calif., Oct. 22 /PRNewswire-FirstCall/ -- Apple® today announced financial results for its fiscal 2007 fourth quarter ended September 29, 2007. The Company posted revenue of $6.22 billion and net quarterly profit of $904 million, or $1.01 per diluted share. These results compare to revenue of $4.84 billion and net quarterly profit of $542 million, or $.62 per diluted share, in the year-ago quarter. Gross margin was 33.6 percent, up from 29.2 percent in the year-ago quarter. International sales accounted for 40 percent of the quarter's revenue.
USD in the gutter good. :aktion033
ope:arty:
Gold price disappears from the BBC commodities sheet...
http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/commodities/default.stm
...must be a tecchie hitch...
http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/commodities/default.stm
...must be a tecchie hitch...
