NTC News

A.M. MARKET UPDATE 03.18.10: STOCK FUTURES POINT DOWN

2010-03-18T05:43:00.009-04:00

KEY ECONOMIC REPORTS DUE TODAY
CNN/MONEY: U.S. stocks were poised to open lower Thursday as investors await some key readings on inflation and employment. Dow Jones industrial average, S&P 500 and Nasdaq 100 futures were down slightly. . . . The Consumer Price Index (CPI) is expected to have risen 0.1% in February after climbing 0.2% the month before . . . The government is also expected to report that the number of Americans filing initial claims for jobless benefits fell last week to 455,000 from 462,000 the week before. After the market opens, the Conference Board will release its February report on leading economic indicators . . . READ MORE

WHITE HOUSE PROJECTS
HIGH UNEMPLOYMENT
FOR 'EXTENDED PERIOD'
BLOOMBERG: U.S. employers won’t hire enough workers this year to lower the jobless rate much below the level of 9.7 percent reached in February, three Obama administration economic officials said . . . The proportion of Americans who can’t find work is likely to “remain elevated for an extended period,” Treasury Secretary Timothy F. Geithner, White House budget director Peter Orszag and Christina Romer, chairman of the Council of Economic Advisers, said in a joint statement. The officials said unemployment may even rise “slightly” over the next few months as discouraged workers start job-hunting again. “We do not expect further declines in unemployment this year,” the officials said in testimony prepared for the House Appropriations Committee . . . READ MORE

U.S. TREASURY REPORT

CONGRESS SEEKS HEARING
INTO LEHMAN BANKRUPTCY
REUTERS: A House panel will hold a hearing exploring regulatory failures leading up to the collapse of Lehman Brothers, after a court-appointed examiner report found elaborate accounting tricks that helped to hide the investment bank's insolvency . . . The 2,200-page Lehman report, prepared by a court-appointed examiner, found that the investment banking firm used a gimmick, known as "Repo 105," for the sole purpose of manipulating its books, contributing to its demise . . . READ MORE

GREECE SEEKS EUROPE'S HELP
IN RESOLVING DEBT PROBLEM
BLOOMBERG: Greek Prime Minister George Papandreou asked European allies to help him lower the country’s borrowing costs, saying he wasn’t asking European taxpayers or the International Monetary Fund for a bailout . . . The risk premium on Greek 10-year bonds has more than doubled since the beginning of November on concern about the country’s ability to finance a biggest deficit of 12.7 percent of gross domestic product, the EU’s largest. Greece still needs to raise about 10 billion euros ($14 billion) to fund bond redemptions in April and May and Papandreou has said that current markets rates are unsustainable . . . READ MORE

A.M. MARKET UPDATE: 01.24.10 INVESTORS EXPECT REBOUND

2010-01-25T06:58:00.009-05:00

LAST WEEK'S SELL-OFF 'OVERDONE'?
WALL STREET JOURNAL: U.S. stock futures were pointing to a rebound on Monday, after last week's bruising close which some say was overdone and as a heavy week of political, economic and corporate events lines up for investors . . . U.S. stocks fell sharply on Friday, with the Dow Jones Industrial Average suffering . . . its biggest one-day drop since October 30. Those losses came as earnings from American Express, Google and others fell short of investors' lofty expectations and as the market continued to fret over U.S. bank restrictions proposed by President Barack Obama and monetary tightening from China . . . READ MORE

SENATE RE-CONFIRMATION FOR
BERNANKE APPEARS MORE LIKELY
THE STREET: Federal Reserve Chairman Ben Bernanke appears to have edged closer to a second term. Mitch McConnell, the top Republican in the Senate, told NBC's "Meet the Press," on Sunday he expects Bernanke to be confirmed . . . Bernanke's confirmation for a second, four-year term was thrown into doubt late last week as some key Democrats said he wouldn't be getting their vote. The uncertainty over Bernanke helped lead to a slide of 552 points last week in the Dow Jones industrial Average . . . READ MORE

CURRENCY: DOLLAR DOWN ON FED NEWS
REUTERS: The dollar slipped against the euro and higher-yielding currencies on Monday . . . Reports that embattled Federal Reserve Chairman Ben Bernanke was edging closer to winning confirmation to serve a second term also calmed markets, tarnishing the dollar's safe-haven appeal . . . READ MORE

POLL: MOST OPPOSE STIMULUS
CNN: A majority of Americans oppose the economic stimulus program, according to a new national poll. Fifty-six percent of people questioned in a CNN/Opinion Research Corporation survey released Sunday say they oppose the stimulus package, with 42 percent supporting it . . . READ MORE

BOND SALES FUND STIMULUS DEBT
CNN/MONEY: Rising domestic demand for U.S. debt allowed the government to sell more than $1.7 trillion of Treasurys during fiscal 2009. Those sales paid for billions of dollars of stimulus spending . . . The big question is whether the feds can pull off that trick again in 2010. The government can't count on the Federal Reserve to soak up $300 billion of Treasurys, as it did last year in a bid to ease the stressed credit markets . . . READ MORE

COMMENTARY/BLOOMBERG NEWS
CAN THE FED HEAR ITSELF?
CAROLINE BAUM: “In the current environment of historically low short-term interest rates, it is important for institutions to have robust processes for measuring and, where necessary, mitigating their exposure to potential increases in interest rates,” sayeth the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corp., the Federal Reserve and other regulators in a Jan. 8 Interagency Advisory Bulletin . . . Are regulators reading their own memo? Rising interest rates introduce a new kind of balance-sheet risk for the Fed. With $1.2 trillion of variable-rate liabilities and $2 trillion of fixed-rate assets, when rates rise, the Fed’s net interest margin shrinks. What would happen if it disappeared? . . . READ MORE

MASSACHUSETTS SENATE: RACE HEATS UP FOR GOP

2010-01-12T03:28:00.010-05:00

MONEY BOMB: REPUBLICAN BROWN
RAISES $1.3 MILLION IN SINGLE DAY
Republican candidate Scott Brown raised $1.3 million in an online "money-bomb" event Monday, according to his Senate campaign. The daylong fundraiser for the GOP candidate in next week's special election -- to fill the seat vacated by the death of Sen. Ted Kennedy -- was promoted by major conservative Web sites and bloggers. Recent polls indicate that Brown, a state senator, has gained ground on state attorney general Martha Coakley, creating the chance for a rare Republican victory in heavily Democratic Massachusetts.

POLLS INDICATE CLOSE FINISH

CANDIDATES MEET IN FINAL DEBATE
POLITICO: Democrat Martha Coakley and Republican Scott Brown faced off over health care, the war on terror and abortion during Monday night’s final televised debate in the Massachusetts special Senate election . . . READ MORE

BROWN IN DEBATE: 'WE ARE AT WAR'
BOSTON GLOBE: The sharpest exchanges came over national security, with Brown hammering Coakley for supporting civilian prosecution of suspected terrorists . . . and for not backing President Obama's proposal to add troops in Afghanistan. "We are at war," Brown said. "We're at war in our airports. We're at war in our shopping malls." . . . "It's naive to think that we have the troops to send everywhere," Coakley said . . . READ MORE

BLOG COMMENTARY:
THE SNOOPER REPORT, WEASEL ZIPPERS, RIEHL WORLD VIEW, RUBY SLIPPERS, PAT AUSTIN, HOT AIR, WIZBANG, THE OTHER McCAIN, GATEWAY PUNDIT, NEO-NEOCON, INSTAPUNDIT, AMERICAN GLOB, THE LONELY CONSERVATIVE, MICHELLE MALKIN

VIDEO: AD HITS COAKLEY ON TAXES

COMMENTARY: AMERICAN THINKER
BLUE TO RED?
RICHARD BAEHR: An unusual opportunity now presents itself in the special election for U.S. Senator in Massachusetts, to take place on Tuesday, January 19. Republican Scott Brown is in striking range of Martha Coakley for the Senate seat once held by the late Ted Kennedy and now held by appointed interim Senator Paul Kirk. Massachusetts is not a Republican-friendly state. It voted for Obama over McCain by 26%. There are zero Republicans in the ten-member U.S House delegation . . . READ MORE

BOSTON HERALD: If you love what's going on in Washington, well, then by all means vote for Martha Coakley . . . she won't make a dime's worth of difference in the balance of power in Washington. But if you're not happy with the status quo, if you think the way business is being conducted on Capitol Hill today is a disgrace and an affront to taxpayers, then you probably agree it's time for a change. Scott Brown can single-handedly deliver on that kind of change . . . READ MORE

WORCHESTER TELEGRAM & GAZETTE: Given the serious issues that face our nation, and the deep ideological divides that have riven Congress, we believe that state Sen. Scott Brown is the best choice to reinvigorate Massachusetts' voice on Capitol Hill. . . . READ MORE

LAWRENCE EAGLE TRIBUNE: Now, voters in Massachusetts can make a real change in Washington. They can put a stop to the leftward surge in politics led by an unfettered Democratic Party. . . . On Jan. 19, vote to make a difference. Vote for real change. Vote to send Republican Scott Brown to the U.S. Senate . . . READ MORE

300 WORDS OR LESS 11.13.09

2009-11-13T00:01:00.000-05:00

Phobias Strike Fear In Liberals

"Ophobia" has become the new "it" suffix amongst liberals. Carrie Prejean was suffering from "homophobia" because she thought marriage should be between a man and a woman. Much of the rhetoric from the left this week has centered around the fear of a mounting wave of "Islamophobia" (I guess that would be Islamophobiaophobia).

I, too, have concerns. There has been a portrayal of TEA Partiers specifically, and conservatives in general, as being racist, angry, southern white men. I am afraid this could lead to un-provoked attacks on actual southern conservatives like The Other McCain, and The Daley Gator. Once this sort of Southerncaucophobia starts it is a fast downward spiral from there. These fears quickly lead to a fear of conservatives in general. Soon, anyone who lives in a rural area is assumed to be a conservative, gun-toting redneck. The paranoia deepens, even people from the north, like me, or from middle America, like Iowa Hawk are assumed to be ignorant and, somehow, southern. The only people who can be trusted are those living in large cities on the coasts. This sort of Hickophobia leads to irrational behavior like restricting gun rights and hiring union thugs to assault anyone who disagress with you. Before you know it, you're living in a sheltered little world on a college campus somewhere. You're suffering from delusions wherein socialism is a viable system for solving the problems of the world. You're a full blown liberal loon with a bad case of Constitutionophobia. In other words, your ready to run for office. Don't say I didn't warn you.

--the triskadecaphobic Right Of Course

A.M. MARKET UPDATE 11.09.09: OIL, GOLD PRICES RISING

2009-11-09T04:55:00.006-05:00

REUTERS: Oil rose more than $1 to above $78 a barrel on Monday . . . on fears a powerful hurricane would cut U.S. oil and gas supplies and also lifted by the falling dollar. Hurricane Ida roared on Sunday through the Gulf of Mexico, where important oilfields are located, after triggering floods and mudslides that killed 124 people in El Salvador . . . READ MORE

MARKETWATCH: The dollar gained slightly on the yen but retreated against the euro in Asian-hours trading Monday, as soaring gold futures pressured the greenback against its European counterpart . . . Gold futures climbed to new heights in electronic trading in Asia, with the most-active December contract tapping an intraday high of $1,105 an ounce . . . READ MORE

STOCKS: WILL RALLY CONTINUE?
CNN/MONEY: Stocks rallied last week, with the Dow reclaiming 10,000, as the major indexes erased most of the losses of the previous two weeks . . . After rallying 63% from its 12-year low hit in March, the S&P 500 shed nearly 6% in the last two weeks of October. Some feared the pullback would extend to 15%. Instead, buyers jumped back in . . . READ MORE

INVESTORS WAIT FOR RETAILERS
TO REPORT EARNINGS THIS WEEK
REUTERS: As unemployment in the United States edges above 10 percent, anxious investors will look to earnings reports from major retailers for signs of life in the beaten-up consumer . . . Wal-Mart should see earnings of 81 cents per share, compared with 77 cents a year earlier, when it reports results on Thursday, according to analysts polled by Thomson Reuters. Kohls also will give its quarterly scorecard on Thursday . . . Macy's is expected to see third-quarter losses widen on Wednesday and JC Penney's profit is likely to be down sharply when it reports results on Friday . . . READ MORE

NBC/UNIVERSAL PRICE $30 BILLION;
G.E., COMCAST NEGOTIATING DEAL
BLOOMBERG: Comcast Corp. and General Electric Co., in discussions over the sale of GE’s NBC Universal division, agreed to value the unit at about $30 billion, according to three people familiar with the matter. Vivendi SA, which owns 20 percent of NBC Universal, isn’t yet part of the agreement . . . READ MORE

COMMENTARY: NEWSWEEK
COULD U.S. DEFAULT ON THE NATIONAL DEBT?
ROBERT J. SAMUELSON: The unthinkable has become thinkable: some advanced society -- say, the United States, Spain, Italy, Japan, or Great Britain -- might someday default on its government debt. It wouldn't pay its creditors all they were owed or wouldn't pay them on time . . . The International Monetary Fund (IMF) issued a report that, without saying so, added credence to this unsettling hypothesis . . . The economic and financial crisis has dramatically increased the deficits and debt of most countries, and many wealthy countries are in worse shape than major developing nations . . . READ MORE

POLL: DEAD HEAT IN NY CONGRESSIONAL RACE

2009-10-29T22:05:00.003-04:00

INDEPENDENT HOFFMAN SURGES TO
VIRTUAL TIE WITH DEMOCRAT OWENS
GOP's SCOZZAFAVA FADING QUICKLY
REAL CLEAR POLITICS: Conservative Party candidate Doug Hoffman has dramatically closed the gap on front-running Democrat Bill Owens in the latest Daily Kos/Research 2000 poll. Owens leads the poll at 33 with Hoffman close behind at 32 percent. Republican Dede Scozzafava stands at 21 percent. . . . As late as one week ago, Owens held a substantial lead over Scozzafava, 35 percent to 30 percent, with Hoffman bringing up third place with 23 . . . READ MORE

INDEPENDENTS BREAK TOWARD
HOFFMAN IN LATEST NY23 POLL
HOT AIR: According to the latest poll taken in New York's 23rd Congressional District, Doug Hoffman holds a commanding lead among independent voters. The Daily Kos/Research 2000 poll shows independents favor Hoffman by 19 points over Bill Owens and by 36 over Dede Scozzafava. However, there is still a sizeable number of undecided voters according to the poll . . . READ MORE

SCOZZAFAVA ENDORSED
BY DISTRICT NEWSPAPER
WATERTOWN DAILY TIMES: The largest regional newspaper in the hotly-contested 23rd Congressional District of New York has endorsed Republican Dede Scozzafava over her two challengers to fill the House seat vacated by John McHugh earlier this year. Citing her experience and her willingness to work in a bipartisan fashion to bring federal tax money to the district . . . READ MORE

TEXAS GOV. PERRY ENDORSES
DOUG HOFFMAN FOR CONGRESS
DALLAS MORNING NEWS : Texas Governor Rick Perry has endorsed Conservative Party candidate Doug Hoffman in the NY-23 special election. Perry said, in a fund-raising e-mail, that he considers Hoffman "the only real conservative in the race." Perry's endorsement joins those of former Senator and presidential candidate Fred Thompson, former Alaska Governor and vice-presidential candidate Sarah Palin . . . READ MORE

ROMNEY KEEPS POWDER DRY,
WON'T ENDORSE IN NY23 RACE
CNN: Former Massachusetts Governor and Republican presidential candidate Mitt Romney demurred from endorsing either Dede Scozzafava or Doug Hoffman at at a campaign rally in Virginia. Romney said that his lack of endorsement "should speak a certain amount of volume. I can't endorse our candidate in that race" . . . READ MORE

BLOG COVERAGE: American Spectator, Ed Driscoll, The Daley Gator, Not One Red Cent,

LIVE NEWS COVERAGE: Stacy McCain, 73 Wire

BREAKING: GEORGE PATAKI ENDORSESDOUG HOFFMAN FOR NY-23 SEAT

2009-10-29T21:03:00.006-04:00

PATAKI DROPS BOMBSHELL ON
SCOZZAFAVA, REPUBLICANS

REDSTATE: Former New York Governor George Pakati has formally endorsed Conservative Party candidate Doug Hoffman tonight. In a statement obtained by Erick Erickson of the RedState blog, Pataki says that he believes Hoffman "will stand tall against those who despise our freedoms and...will be a vigilant stalwart against those who would substitute government programs for individual initiative." Pataki, who has been approached by the Republicans for a possible Senate run in 2010, remains very popular in upstate New York and his unequivocal endorsement is likely to carry a great deal of weight.

SCOZZAFAVA DINGS OPPONENTS ON EXPERIENCE,
CLAIMS NEVER TO HAVE VOTED TO RAISE TAXES.

SYRACUSE POST-STANDARD: For Dede Scozzafava, Thursday afternoon's debate was a game of quick offensive and defensive shifts. With her record under assault from both her opponents, the Republican candidate highlighted her years of service and the particular knowledge about local issues that experience had given her. Her charge that whoever wins the race should "have an understanding of the issues rather than national syndicated shows" seemed aimed specifically at Doug Hoffman. She also claimed that her voting record had been distorted by both men and that she has never voted for a tax increase. The Democratic Congressional Campaign Committee has claimed that Scozzafava voted for 190 tax and fee increases, a charge the Watertown Daily Times considered specious.

A.M. MARKET UPDATE 10.19.09: REAL ESTATE CRISIS RETURNS?

2009-10-19T05:14:00.004-04:00

REPORT: MOODY'S HID TROUBLES
DURING REAL-ESTATE 'BUBBLE'
McCLATCHY: As the housing market collapsed in late 2007, Moody's Investors Service, whose investment ratings were widely trusted, responded by purging analysts and executives who warned of trouble and promoting those who helped Wall Street plunge the country into its worst financial crisis since the Great Depression. . . . Moody's punished executives who questioned why the company was risking its reputation by putting its profits ahead of providing trustworthy ratings for investment offerings . . . . READ MORE

REPORT: FDIC MISSED SIGNS
WARNING OF BANKING WOES
BLOOMBERG: The Federal Deposit Insurance Corp. failed to enforce its own guidelines to rein in excessive commercial real estate lending by at least 20 banks that later collapsed, reports by the agency’s watchdog show. The FDIC’s Office of Inspector General analyzed 23 lenders taken over by regulators from August 2008 to March and found that for 20, the agency’s examiners didn’t identify the issue early enough or should have taken stronger supervisory action after recognizing the banks had dangerously high levels of the loans before they failed . . . READ MORE

REPORT: FORECLOSURES FORCE
FAMILIES INTO HOMELESSNESS
NEW YORK TIMES; Growing numbers of Americans who have lost houses to foreclosure are landing in homeless shelters, according to social service groups and a recent report by a coalition of housing advocates. Only three years ago, foreclosure was rarely a factor in how people became homeless. But among the homeless people that social service agencies have helped over the last year, an average of 10 percent lost homes to foreclosure, according to “Foreclosure to Homelessness 2009,” a survey produced by the National Coalition for the Homeless and six other advocacy groups . . . READ MORE

CAPMARK TO SELL JAPANESE UNIT;
U.S. LENDER READIES BANKRUPTCY
REUTERS: Capmark Financial Group Inc, a U.S. commercial and real estate company preparing for bankruptcy, will sell its Japanese loan servicing business to Sandringham Capital Partners, a UK-based fund management firm, . . . Capmark Financial, which was created through a 2006 leveraged buyout of certain GMAC assets, has been selling businesses as it is preparing to file for bankruptcy . . . READ MORE

INVESTORS AWAIT EARNINGS
REPORTS FROM MAJOR FIRMS
CNN/MONEY: Apple on Monday kicks off a big week for marquee-name corporations to report results, with 135, or 27% of the S&P 500 on the docket. That list includes 13 Dow components. The standouts are: American Express, Microsoft, Merck (MRK, Fortune 500), Pfizer (PFE, Fortune 500), 3M and Coca-Cola. Other big names due to report include: Yahoo, Wells Fargo, Amazon.com and eBay . . . Since bottoming at a 12-year low March 9, the S&P 500 has rallied nearly 61%, while the Dow has rallied nearly 53%, through Friday's close . . . READ MORE

VIVENDI BUYOUT SNAGS G.E.
IN NBC DEAL WITH COMCAST
WALL STREET JOURNA L: General Electric Co. and Vivendi SA are about $500 million apart in talks over what Vivendi should be paid for its minority stake in stake in television and movie company NBC Universal, according to people familiar with the matter. That stake is a key element in a potential deal that could give U.S. cable operator Comcast Corp. control of NBC Universal, and eventually usher GE out of the entertainment business. GE currently owns 80% of NBC Universal and Vivendi has 20% . . . READ MORE

COMMENTARY: INVESTMENT NEWS
IT'S LIKE 1930 AGAIN
JAY R. FEUERSTEIN: The U.S. stock market and economy are in much the same place now as they were in 1930. Seventy-nine years ago, unemployment stood at about 10%, even though the stock market was 40% above its low set in the crash a year earlier. As the calendar moved into 1931, the bottom fell out. Unemployment ultimately hit 25%, while the stock market lost 84% of its value . . . If policymakers continue along their recent paths, investors should beware that history may repeat itself. Stocks may resume the free-fall they started in September 2008 and housing prices may crumble even more as job losses mount and credit markets seize . . . READ MORE

A.M. MARKET UPDATE 10.07.9: GOLD HITS RECORD HIGH

2009-10-07T04:01:00.004-04:00

BLOOMBERG: Gold’s rally this year to a record shows commodity investors remain concerned that the U.S. economic recovery will spur inflation . . . Bullion has jumped 18 percent this year, heading for a ninth straight annual gain, after futures touched a record $1,045 an ounce yesterday in New York amid increasing demand for a hedge against inflation and a weaker dollar . . . READ MORE

ANALYST: GOLD NOW 'BULLETPROOF'
ASSOCIATED PRESS: The dollar has weakened considerably this year amid low interest rates and massive government spending designed to spur the economy . . . "I think the case for gold is pretty bulletproof right now," said Joe Foster, portfolio manager of the Van Eck International Investors Gold Fund. "Given that we're at new highs now, I think the next target the market will be looking at is $1,100." . . . READ MORE

WEAKER DOLLAR SPURS CALL
FOR NEW GLOBAL CURRENCY
WASHINGTON POST: The U.S. dollar continued its six-month slide Tuesday amid a growing international chorus that wants the dollar replaced -- or at least supplemented -- as the world's reserve currency, a move that would end the greenback's six decades of global dominance . . . READ MORE

BONDS: TREASURY AUCTION WEAKER
WALL STREET JOURNAL: Treasury prices remained lower Tuesday afternoon after an average three-year Treasury note auction . . . The tepid demand at the sale of a record $39 billion three-year notes came as somewhat of a disappointment . . . Treasury will sell $20 billion in previously sold 10-year notes Wednesday and $12 billion in reopened 30-year Thursday . . . READ MORE

REAL ESTATE: OFFICE VACANCIES 16%
REACH HIGHEST LEVEL IN FIVE YEARS
REUTERS: The U.S. office vacancy rate reached a five-year high in the third quarter, pushed up by extra unused space that just about wiped out all the gains made during the commercial real estate boom, according to real estate research firm Reis Inc. The national vacancy rate rose . . . to 16.5 percent . . . READ MORE

BANKING: FDIC SELLS 40% OF FAILED
CHICAGO LENDER FOR $554 MILLION
ASSOCIATED PRESS: The Federal Deposit Insurance Corp. has agreed to sell a 40 percent stake in a portfolio of Corus Bank assets for $554.4 million to a private-equity consortium led by Starwood Capital Group. . . . Federal regulators in September seized Corus Bancshares Inc., a major Chicago-based lender to condominium, office and hotel projects . . . Corus Bank's closure is expected to cost the fund that insures bank deposits $1.7 billion . . . READ MORE

REPORT: FED CONCERNED ABOUT
COMMERCIAL REAL-ESTATE WOES
WALL STREET JOURNAL: Banks in the U.S. "are slow" to take losses on their commercial real-estate loans being battered by slumping property values and rental payments, according to a Federal Reserve presentation to banking regulators last month. The remarks suggest that banking regulators are girding for a rerun of the housing-related losses now slamming thousands of banks . . . READ MORE

DEBT MARKET HINDERS ECONOMY
NEW YORK TIMES: The continued disarray in debt-securitization markets, which in recent years were the source of roughly 60 percent of all credit in the United States, is making loans scarce and threatening to slow the economic recovery . . . READ MORE

WALL STREET P.M. 10.02.09: DOW CONTINUES SLIDE

2009-10-02T16:30:00.003-04:00

DJIA: -21.61 CLOSE 9,487.67
S&P 500 -8.99 CLOSE 1,025.21
NASDAQ -9.37 CLOSE 2,048.11

STOCKS: WORST WEEK SINCE JUNE
MARKETWATCH: U.S. stocks on Friday finished in the red after September's jobs report disappointed, with the major indexes tallying their second consecutive week of losses. Ending its worst week since mid-June, the Dow Jones Industrial Average fell 21.61 points . . . READ MORE

DISAPPOINTING DATA ON JOBS
BLOOMBERG: U.S. stocks fell, capping the market’s first back-to-back weekly declines since July, as a bigger-than-estimated loss of jobs and a drop in factory orders spurred concern the economy is struggling to recover . . . READ MORE

CURRENCY MARKETS WATCH FED

2009-09-20T21:13:00.001-04:00

BLOOMBERG: The dollar was little changed on speculation that the Federal Open Market Committee will this week signal policy makers may withdraw economic stimulus measures, boosting the appeal of U.S. assets. . . . "There's a risk the FOMC will indicate at some point they will start withdrawing their stimulus to the economy," said Joseph Capurso, a currency strategist in Sydney at Commonwealth Bank of Australia . . . "The catalyst for the dollar strengthening on a sustained basis is likely to come from the FOMC." . . . The Fed will keep its target rate for overnight loans in a range of zero to 0.25 percent at its two-day policy meeting starting tomorrow, according to all 91 economists surveyed by Bloomberg News. The central bank decided in August to end purchases of as much as $300 billion in Treasury debt next month, under a program that started in March . . . READ MORE

SMART COMPANY: In the US, a meeting of the Federal Reserve interest rate-setting body - the Open Market Committee - dominates the first half of the coming week. The FOMC meets over Tuesday and Wednesday with a decision on rates announced on Thursday morning . . . READ MORE

300 WORDS OR LESS 09.18.09

2009-09-18T00:23:00.002-04:00

Pelosi Disavows Any Knowledge Of Congressional Activities And Warns Of Violence To Come

Nancy Pelosi again demonstrated her firm understanding of current events. When asked about an amendment to defund ACORN that passed the Senate Monday (a similar Bill passed in the House of Representatives today), Pelosi had this to say, "I don't even know what they passed. What did they do? They defunded it?" That was yesterday.

Today, she bordered on tears as she choked out a warning about where she thinks these rallies and town hall meetings might lead. "I saw this myself in the late 70's in San Francisco" she laments, "This kind of rhetoric is just, is really frightening and it created a climate in which violence took place..."

It's true, there were violent protests in the 70's, but they weren't being held by any conservative groups. The Black Panthers, various communist and labor movements were staging violent, anti-government rallies. There has already been violence at a town hall meeting, but again, it was perpetrated by the left. The only people using rhetoric, slogans, and racial slurs...also all on the left. The TEA Partiers, 9/12 errs and others who have shown up with legitimate concerns and questions have engaged in nothing more violent than raising their voices or walking out of meetings. Who exactly is it Nancy Pelosi believes will be inciting the violence of which she speaks?

--Rightofcourse

300 WORDS OR LESS 09.16.09

2009-09-16T00:01:00.000-04:00

ACORN and Democrats – the real racists

Liberals love to cry racism whenever things don't go their way. They like to portray the Republican Party as a bunch of racist old white men who hate minorities. Certainly Democrats would never back an organization that oppresses minorities.

Let's look at ACORN for a minute. ACORN is an organization the left loves to point to as an example of how "community organizing" can really lift a community and help minorities rise up and lead a better life. ACORN was founded by a couple wealthy white guys, Dale and Wade Rathke. Wade Rathke stepped down from his post at ACORN a couple years ago, but not before he "allegedly" embezzled a few million dollars. That's money that should have been going to the underprivileged minorities ACORN was supposed to be helping. Where was the outrage from Democrats and black community leaders? Why is Fox News the only place you can hear about this? Wade went on to found the Service Employees International Union (SEIU) so he can continue his work with the underprivileged.

Dale Rathke continues the dream with his work at ACORN. Here's what ACORN has done to lift up the underprivileged. ACORN sued the state of California in an effort to prevent having to pay their employees minimum wage. They attempted to block their employees from forming a union (there's some irony). When their employees have been charged with criminal activities, ACORN usually immediately fires them and disavows any knowledge of the activity. This is usually followed with a public condemnation of the "rogue employees". How many white employees have you seen ACORN fire? How many Democrats have asked a single question about this fact?

--Rightofcourse

INFLATION: GOLD, OIL RISEBECAUSE OF WEAK DOLLAR

2009-09-09T11:05:00.000-04:00

BLOOMBERG: Crude oil rose as the dollar dropped to the lowest level against the euro this year before OPEC’s scheduled announcement today that its members will maintain output targets . . . The U.S. currency dropped 0.7 percent to $1.4574 per euro from $1.4478 yesterday. It touched $1.4586, the weakest since Dec. 18 . . . READ MORE

ASSOCIATED PRESS: Oil prices hovered above $71 a barrel Wednesday after a weakening U.S. dollar sent crude soaring overnight and as an OPEC meeting was expected to announce no change in production levels . . . Some investors buy oil, gold and other commodities as a hedge against a weakening dollar and inflation . . . READ MORE

REUTERS: U.S. gold futures rose slightly , , , as prices held near $1,000 an ounce on the back of a sharp decline of the dollar amid growing risk appetite, boosting bullion's appeal as a currency hedge . . . READ MORE

CHINA SHIFTS FROM DOLLAR TO GOLD?
LONDON TELEGRAPH: Gold prices have been buoyed by increased demand from China. Each time prices tip, China appears to buy buying gold bullion, effectively putting a “floor” on prices. This action would appear to validate the long-held belief of many gold experts that China has fundamentally lost confidence in the US dollar, and is looking to boost gold reserves instead . . . READ MORE

HIGHER GOLD PRICES EXPECTED
BUSINESS DAY: The gold price could strengthen a further 10% to 15% from current levels, Investec Asset Management said today . . . "We believe it would not be unreasonable for gold to trade 10% to 15% higher from current levels, hitting the $1,100 to $1,150/oz range," said Investec in a note . . . The gold price marched through the $1,000 an ounce level yesterday on the back of a weaker dollar and hints of emerging hyperinflation . . . READ MORE

BLOOMBERG: Gold, trading near an 18-month high in New York, may advance to a record before the end of the year as investors seek to hedge against a weaker dollar and possible inflation, a survey showed . . . "Extremely loose fiscal and monetary policies are likely to create an inflation headache down the road," said Mark O'Byrne, managing director of broker GoldCore Ltd. in Dublin. "With the dollar's global reserve status being increasingly questioned, the dollar is likely to fall further in the coming months and lead to further diversification into gold" . . . READ MORE

TREASURY AUCTION AWAITED

2009-09-09T10:28:00.000-04:00

MARKETWATCH: Long-term Treasurys prices fell Wednesday, pushing yields up, before the government sells $20 billion in benchmark 10-year notes, the second of three major note and bond auctions this week . . . The Treasury Department will finish the week with a sale of $12 billion in 30-year bonds on Thursday . . . READ MORE

WALL STREET P.M. 09.08.09: STOCKS UP, DOLLAR DOWN

2009-09-08T17:34:00.009-04:00

DJIA: +56.07 CLOSE 9,497.34
S&P 500 +8.99 CLOSE 1,025.39
NASDAQ +18.99 CLOSE 2,037.77

MERGER TALK BOOSTS ENTHUSIASM
BUSINESS WEEK: Stocks finished higher Tuesday as a rekindling of merger and acquisition activity and strong commodity prices bolstered investors' enthusiasm about the economy . . . Gold futures touched a high of $1,009.70 per ounce in morning trading. . . before finishing up $1.10 to $997.80. Gold prices have surged in the last week amid the outlook for extremely low interest rates, soaring fiscal deficits, and talk of central bank diversification. China has indicated that it could diversify some of its interests into gold, adding to the bullish tone . . . READ MORE

CNN/MONEY: The NASDAQ hit its highest point in almost a year Tuesday and the Dow and S&P 500 also climbed . . . Bond prices sank, raising the corresponding yields, while the dollar fell to the lowest point in almost a year. . . . A more than 4% spike in oil prices and gold prices that briefly topped $1,000 gave a lift to the influential commodities sector . . . READ MORE

WEAK DOLLAR SPURS OIL PRICE HIKE
WALL STREET JOURNAL: Crude oil futures prices ended above $71 a barrel Tuesday after the posting the biggest single-day rise since Aug. 19 on a buying spree spurred by weakness in the dollar . . . "It's been one of the major trades of the past year: weak dollar, buy commodities," said Andy Lebow, senior vice president at MF Global . . . READ MORE

GOLD SURGES ON INFLATION FEAR
BLOOMBERG: Gold rose to the highest price since March 2008, topping $1,000 an ounce, while silver climbed to a 13-month high as a weaker dollar and concern that inflation may accelerate boosted the appeal of precious metals . . . Crude oil and all six industrial metals on the London Metal Exchange rallied as the U.S. Dollar Index fell as much as 1.2 percent to an 11-month low. . . . "The market thinks inflation is coming," said Leonard Kaplan, the president of Prospector Asset Management . . . He has been trading gold for more than 30 years and believes gold won't stay above $1,000 for long. "With interest rates so low, money is chasing money and the dollar is getting murdered" . . . READ MORE

ASSOCIATED PRESS: The dollar fell to a low for the year Tuesday as gold prices shot above $1,000 an ounce . . . Published comments from a Chinese government official in a British newspaper knocking the Federal Reserve's policy of buying bonds also drove the dollar lower, said Joseph Trevisani, chief market analyst at FXSolutions . . . READ MORE

WASHINGTON POST: The last time gold topped $1,000 was Feb. 20, as the markets were spiraling toward their early March bottom . . . Gold typically goes up as the value of the dollar goes down against other currencies. The dollar is at a new yearly low against the euro . . . The Fed has flooded the system with new dollars over the past year . . . But more dollars in circulation means each one is worth less, which can spur inflation. The Fed is not afraid of inflation, but others are not so sure . . . READ MORE

CHINESE OFFICIAL: INFLATION
DANGER IN U.S. FED POLICY

DECLINE IN CONSUMER CREDIT
POINTS TO SLOWER RECOVERY
REUTERS: Total U.S. consumer credit fell by a record $21.6 billion in July, Federal Reserve data showed on Tuesday, the latest hint household spending would be too weak to drive the economy's recovery from recession . . . "It is one more important sign that consumers are not going to be contributing very much to the economy for the balance of this year and probably for a good part of next year. Consumers will be in the background," said Bernard Baumohl, chief global economist at The Economic Outlook Group . . . With an unemployment rate of 9.7 percent, the highest in 26 years, and incomes falling, households have drastically cut back on spending. Consumer spending accounts for about two-thirds of U.S. economic activity . . . READ MORE

STUDY: CALIF. RECOVERY WILL LAG
KPBS: A new study by the California Budget Project says California won't recover from the recession as quickly as most other states . . . It shows that most of California's workers are still having a tough time making ends meet during the economic downturn . . . "One thing that's troubling is that so many forecasts show that California's unemployment rate will continue to rise in 2010 and will remain in double digits at least through 2011. And, so I think we're going to see a very weak job market for at least several years here in California," says the project's deputy director, Alissa Anderson . . . READ MORE

300 WORDS OR LESS 09.08.09

2009-09-08T00:01:00.002-04:00

Van Jones Was No Vetting Problem

The Obama administration is trying to minimize the damage done by Van Jones' appointment. They claim this was a vetting problem. There is a problem with the appointment of Czars, since they do not have to be confirmed by...well, anyone. Cabinet-level staff face an established process. If Van Jones was the only extremist lunatic Obama appointed to his groups of Czars, you could say it was a vetting problem. If Obama's staff and other Democrats hadn't been so vocal about following Van Jones’ great accomplishments for years, you could say it was a vetting problem. If so many members of the left weren't currently talking about the loss of a great man, you could say it was a vetting problem.

The truth is, a large portion of the left (including President Obama) agree with Van Jones, that is to say, a large portion of the left are absolutely bonkers. As William Jacobson points out at Legal Insurrection, Van Jones' beliefs are right in line with many Democrats. A brief overview:

George W. Bush is evil and possibly had a hand in 9/11.
White people are evil and spend their time coming up with ways to oppress minorities, or even poison them.
Global warming/cooling is an indisputable fact and anyone who disagrees is evil and wants polar bears to burn.
Cops are violent instruments of oppressive white people.
Due to oppressive white people, America is evil.

It resembles "you might be a redneck". Subscribing to the above...you might be a Democrat. Unfortunately, a large group of people in power now believe all of those statements and worse. Van Jones is gone, but there are plenty of radicals left to continue the legacy of lunacy. Polar bears rejoice.

--Rightofcourse

VIDEO: HOUSING HASN'T HIT BOTTOM YET, TILSON SAYS

2009-09-07T18:06:00.006-04:00

BUSINESS INSIDER: Heather Leonard interviews Whitney R. Tilson, founder and Managing Partner of T2 Partners LLC and the Tilson Mutual Funds, and co-author (with Glenn Tongue) of More Mortgage Meltdown: 6 Ways to Profit in These Bad Times.

BOOK REVIEW/THE TICKER:
AUTHORS EXPLAIN HOUSING 'BUBBLE'
LUIS SUED: Understanding the impact of the formation and eventual implosion of the US mortgage market is essential for learning about what caused the credit crisis and recession . . . In their book More Mortgage Meltdown, Whitney Tilson and Glenn Tongue, fund managers at T2 Partners LLC, explain why the housing bubble occurred and what we are likely to see happen next in the housing market, the stock market and the economy as a whole. In explaining the cause of the bubble, the authors utilize a number of charts to portray the bubble’s full scope and its potential consequences. The authors manage to present intricate financial concepts in a comprehensible and logical manner . . . READ MORE

LABOR DAY 2009: HOLIDAYDIMMED FOR UNEMPLOYED

2009-09-07T11:39:00.007-04:00

DISCOURAGED JOBLESS UNCOUNTED
NEW YORK TIMES: They were left out of the latest unemployment rate, as they are every month: millions of hidden casualties of the Great Recession who are not counted in the rate because they have stopped looking for work . . . READ MORE

UNEMPLOYED 'SHAKEN, TRAUMATIZED'
RUTGERS UNIVERSITY: A comprehensive national survey conducted among 1,200 Americans nationwide who have been unemployed and looking for a job in the past 12 months, including 894 who are still jobless, portrays a shaken, traumatized people coping with serious financial and psychological effects from an economic downturn of epic proportion . . . Two thirds of respondents say they are depressed, over half have borrowed money from friends or relatives, and a quarter have skipped mortgage or rent payments . . . READ MORE (PDF)

UNEMPLOYMENT AT 26-YEAR HIGH

'THE SCARIEST JOBS CHART EVER'
BUSINESS INSIDER: Unless employment rebounds rapidly (it's still falling), it's hard to see how we're going to get the v-shaped recovery that the bulls are now expecting . . . READ MORE

UNEMPLOYMENT BENEFITS NEARING
END FOR MASSACHUSETTS JOBLESS
BOSTON GLOBE: Massachusetts is experiencing its first wave of jobless workers to exhaust unemployment benefits after nearly two years of rising unemployment, state labor officials said. The state this week sent out letters notifying about 2,500 jobless workers that they had or would soon receive their last unemployment checks, having used up state and federal extensions that provided up to 79 weeks, or about 18 months, of benefits. The state expects about 21,000 jobless workers to run out of unemployment benefits by Thanksgiving . . . READ MORE

STUDY: U.S. ECONOMIC POLICY
REPEATS DEPRESSION MISTAKES
LONDON TELEGRAPH: Barack Obama is committing the same mistakes made by policymakers during the Great Depression, according to a new study endorsed by Nobel laureate James Buchanan . . . There are "troubling similarities" between the US President's actions since taking office and those which in the 1930s sent the US and much of the world spiralling into the worst economic collapse in recorded history . . . READ MORE

STUDY: Economic Contractions in the United States: A Failure of Government by Charles K. Rowley (GMU) and Nathanael Smith (Locke Institute)

ANALYSTS: STOCKS FLAT FOR FALL
BARRON'S: As autumn arrives, the 10 top strategists and investment officers surveyed by Barron's say they expect the Standard & Poor's 500 to finish this year at an average of 1056 -- barely 4% above today's level at 1016 . . . The cluster of year-end targets between 1000 and 1100, all in a tight band within a short distance of today's market, reflects a common concern that stocks have already run up very far, very fast. Traders lunging at stocks at the first whiff of economic recovery have swelled price/earnings multiples. "A lot of good news is already priced into the market," says Larry Adam, Deutsche Bank Private Wealth Management's chief investment strategist . . . READ MORE

CNN/MONEY: "We've had some artificial demand created by all the stimulus, but when you take that away, will there be enough fuel for real demand to take its place?" said Dave Hinnenkamp, CEO at KDV Wealth Management. "The market is looking at the data and trying to figure it out." Hinnenkamp said that stocks are likely to seesaw or even slide five or ten percent over the next month or two . . . READ MORE

UNEMPLOYMENT 11% NEXT YEAR?
JOHN MAULDIN: While manufacturing is up, the service industry (which is far larger) is still contracting, and the employment elements in the surveys show employers are still planning to cut jobs. Think about almost 11% unemployment next summer in the middle of the political season . . READ MORE

HENRY BLODGETT: I think it is very possible we will see a negative GDP by the first quarter of next year. Unemployment will still be rising . . . READ MORE

CHINESE OFFICIAL: INFLATIONDANGER IN U.S. FED POLICY

2009-09-07T02:27:00.001-04:00

LONDON TELEGRAPH: Cheng Siwei, former vice-chairman of the Standing Committee . . . said Beijing was dismayed by the Fed's recourse to "credit easing." . . . "If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies," he said . . READ MORE

RGE MONITOR: For months now, the Chinese have signalled growing unease with U.S. monetary policy. And now comes the clearest signal yet that they are moving away from the dollar. . . . The $2 trillion in U.S. dollar reserves the Chinese already have are a sunk cost. Going forward, the Chinese are free to do as they wish with incremental additions to reserves . . . READ MORE

FEDS SHUT DOWN 5 BANKS

2009-09-05T16:20:00.008-04:00

THE STREET: Regulators shut down three banks and two thrifts Friday, bringing the 2009 tally of failed U.S. banking institutions during 2009 to 89 . . . READ MORE

FOX BUSINESS: The FDIC's report said the closed banks included the First Bank of Kansas City in Missouri, the First State Bank of Flagstaff, Arizona, Vantus Bank in Sioux City, Iowa, InBank in Oak Forest, Illinois and Platinum Community Bank of Rolling Meadows, Illinois. Of the five banks that were closed, Vantus Bank was the largest, with $458 million in total assets and $368 million in deposits. . . . READ MORE

BLOOMBERG: Lenders in Illinois, Iowa, Missouri and Arizona collapsed, pushing the number of bank failures to 89 this year amid continuing fallout from the worst economic slump since the Great Depression . . . Regulators have closed banks at the fastest pace in 17 years and more are likely as losses mount from soured real-estate debt. A total of 416 banks with combined assets of $299.8 billion failed the FDIC’s grading system for asset quality, liquidity and earnings in the second quarter, the most since June 1994, the regulator said in a report last month . . . READ MORE

FDIC WILL PAY OFF ACCOUNTS
FOR ILLINOIS PLATINUM BANK
DAILY HERALD: Customers of Rolling Meadows' Platinum Community Bank were caught off guard by the bank's sudden closure - even though FDIC officials were on hand Saturday to reassure them that their money was safe . . . The Federal Deposit Insurance Corporation, or FDIC, will be paying out the bank's insured accounts - those of $250,000 or less per individual account. The bank's total deposits amount to $305 million. The FDIC will mail customers checks for their insured funds on Tuesday, Sept. 8, according to a news release . . . READ MORE

PLATINUM BANK LINKED
TO BANKRUPT TAYLOR BEAN
CONSUMER AFFAIRS: Regulators seized the Platinum Community Bank of Rolling Meadows, Ill. Friday, closing another chapter in the Taylor, Bean & Whitaker story . . . Platinum Community Bank was acquired by Taylor Bean kingpin Lee Farkas in 2008. Taylor Bean filed for bankruptcy protection last month, a few weeks after it closed its lending operations under pressure from federal regulators . . . READ MORE

FIRST BANK OF KANSAS CITY NOW
TAKEN OVER BY GREAT AMERICAN
BIZJOURNALS.COM: The Missouri Division of Finance closed First Bank of Kansas City on Friday and appointed the Federal Deposit Insurance Corp. as the bank's receiver. The FDIC said in a release that it had entered into an agreement with Great American Bank of De Soto, Kan., for it to assume all deposits and buy all assets of First Bank of Kansas City . . . READ MORE

GREAT SOUTHERN BANK NOW
TAKES OVER IOWA'S VANTUS
REUTERS/P.R. NEWSWIRE: Great Southern Bank, a subsidiary of Great Southern Bancorp, Inc. announced that it has entered into a purchase and assumption agreement with loss share with the Federal Deposit Insurance Corporation (FDIC) to assume all of the deposits and certain assets of Vantus Bank, a full-service bank headquartered in Sioux City, Iowa. . . . READ MORE

INBANK OF OAK FOREST SOLD
TO CHICAGO'S MB FINANCIAL
SOUTHTOWN STAR: Oak Forest-based InBank, which has three branch offices, was acquired Friday by MB Financial in a deal worked out with the Federal Deposit Insurance Corp. InBank's offices in Oak Forest and Tinley Park opened today as branches of MB Financial. The bank's Chicago office will open Tuesday under the new name, MB Financial said in a release issued last night . . . READ MORE

FIRST STATE BANK OF FLAGSTAFF
SOLD TO CALIFORNIA'S SUNWEST
BIZJOURNALS.COM: The Federal Deposit Insurance Corp. has been appointed receiver of First State Bank of Flagstaff and is selling it to Sunwest Bank of California . . . READ MORE

COMMENTARY/MOTLEY FOOL
FDIC's 'HILARIOUS' GUARANTEE
DAVID KREITZMAN: The slightly hilarious part is that in the event of a true banking meltdown, the FDIC wouldn't have near the amount of necessary funds to ensure depositors got their money back. According to the FDIC’s own website, they manage an "insurance fund" of more than "$52.8 billion," yet the agency "insures more than $4.3 trillion of deposits in 8,494 U.S. banks and thrifts." Let's see . . . $52.8 billion of funds to cover $4.3 trillion of deposits. Yes, the FDIC carries enough cash to cover a whopping 1.23% of the total deposits that it claims to insure . . . READ MORE

F.H.A. DELINQUENCIES RISE

2009-09-04T19:37:00.003-04:00

WALL STREET JOURNAL: The Federal Housing Administration, hit by increasing mortgage-related losses, is in danger of seeing its reserves fall below the level demanded by Congress, according to government officials, in a development that could raise concerns about whether the agency needs a taxpayer bailout . . . "They're probably going to need a bailout at some point because they're making loans in a riskier environment," says Edward Pinto, a mortgage-industry consultant and former chief credit officer at Fannie Mae. "I've never seen an entity successfully outrun a situation like this." . . . READ MORE

AGENCY NEEDS TAXPAYER BAILOUT?
BUSINESS INSIDER: The FHA has played a key role in the government's attempts to stabilize the housing market. . . . FHA-backed loans outstanding, which totaled $429 billion in fiscal 2008, are projected to hit $627 billion this year. FHA market share rose from 2.7% in 2006 to 23% last quarter . . . Until last year FHA guaranteed down payment assistance programs that basically let borrowers buy houses with no money down. Many of those borrowers soon had negative equity in their homes when housing prices dropped . . . READ MORE

DAILY FINANCE: That low down-payment rate was a recipe for disaster as home prices continued to fall. Many people who took FHA loans in the last three years could be facing underwater mortgages because home prices have fallen more than 3.5 percent. As job losses continue to mount, why would someone facing economic difficulties try to keep a home that is worth less than the money owed on it? . . . READ MORE

INVESTORS BUSINESS DAILY: FHA-insured loans have more than tripled from 530,000 in fiscal year 2007 to 1.7 million thus far in 2009. The Government National Mortgage Association, which securitizes FHA loans, has boosted its mortgage-related issuance to $287 billion from $85 billion. Yet during that same period, the FHA's loan delinquency rate has climbed to 14.4% in Q2 from 12.6% two years earlier . . . READ MORE

COMMENTARY/MARKET WATCH
FEDS ADOPT COUNTRYWIDE MODEL
REX NUTTING: An anonymous senior official . . . told the Journal that there was "no risk" that Congress would have to bail out the FHA. Yes, and there was no risk that housing prices would ever fall, no risk that Bear Stearns would collapse, no risk the subprime mess would spread around the world, no risk that AIG would ever have to pay off its credit default swaps -- and no risk that homeowners with no equity would walk away from their mortgage. Angelo Mozilo, former CEO of Countrywide Financial, would be proud to know his legacy lives on. . . . READ MORE

COMMENTARY/THE MODERATE VOICE
ANOTHER GOVERNMENT DISASTER
MIKKEL FISHMAN: Whether it’s Fannie/Freddie or the FHA/FDIC, it is becoming increasingly clear that when the government tries to have its cake and eat it too, things don’t work . . . READ MORE

WALL STREET P.M. 09.04.09:STOCKS GAIN ON JOBS NEWS

2009-09-04T17:20:00.010-04:00

DJIA: +96.66 CLOSE 9,441.27
S&P 500 +13.16 CLOSE 1,016.40
NASDAQ +35.58 CLOSE 2,018.78

CNN/MONEY: Stocks rallied Friday in a thinly traded session ahead of the Labor Day weekend, as investors focused on the positives in a mixed report on the labor market . . READ MORE

REUTERS: U.S. stocks closed higher on Friday as investors focused on the bright side of a mixed payrolls report that showed smaller-than-expected job cuts in August, although the unemployment rate hit a 26-year high . . . Gains were broad-based, with technology shares leading the charge . . . READ MORE

ANALYST: UNEMPLOYMENT PUTTING
'DOWNWARD PRESSURE' ON WAGES
BLOOMBERG: Tony Crescenzi, a market strategist and portfolio manager at Pacific Investment Management Co., manager of the world’s biggest bond fund, said the U.S. faces a slow recovery because unemployment is persisting . . . "The key ingredient for a sustainable recovery is still absent," Crescenzi said today in an interview on Bloomberg Radio. “We need income growth to produce self-reinforcing expansion. . . . The duration of unemployment will be longer and will put downward pressure on wages." . . . READ MORE

UNEMPLOYMENT REACHES 9.7%
LABOR DEPARTMENT REPORT

FANNIE, FREDDIE STOCKS RISE
THE STREET: Fannie Mae and Freddie Mac shares were up big on unusually heavy volumes Friday, even though few sane people believe the stocks have much value. "I think they're worth zero," said Malcolm Polley, CIO of Stewart Capital Advisors, a $900 million money manager near Pittsburgh. "It's the same with AIG. It's ridiculous that people are allowed to trade in these securities. They're being treated as lottery tickets." . . . READ MORE

F.H.A. DELINQUENCY RATES WORRY

WHITE HOUSE DEFENDS STIMULUS
THE HILL: The Obama administration beat back criticism of its economic policies Friday as the nation's unemployment rate jumped to 9.7 percent. White House press secretary Robert Gibbs said the 216,000 jobs the economy lost in August is less than a third of those lost in January, which he said is proof that the $787 billion stimulus is working. "We're making progress in slowing down the number of jobs lost," said Gibbs . . . READ MORE

'CASH FOR CLUNKERS' PROGRAM
FAILS TO CREATE U.S. AUTO JOBS
HERITAGE FOUNDATION: Congress passed the Cash for Clunkers program in order to increase automobile employment and save jobs. . . . The employment report shows that -- despite the Cash for Clunkers craze, and the $2 billion Congress added to the program at the end of July -- motor vehicles and parts manufactures shed 15,000 jobs in August. That erased half of the jobs gained in July and continued the yearlong downward trend . . . READ MORE

GOLD MISSES $1,000 MARK
FORBES: Gold futures ended $1 lower Friday as prices failed to surpass $1,000 an ounce, and the precious metal could be vulnerable to near-term profit taking after this week's rally, traders said . . . READ MORE

COMMENTARY/CATO INSTITUTE
'BUBBLE' LESSONS NOT LEARNED
MARK A. CALABRIA: The housing boom and bust that occurred earlier in this decade resulted from efforts by Fannie Mae and Freddie Mac -- the government sponsored enterprises with implicit backing from taxpayers -- to extend mortgage credit to high-risk borrowers. This lending did not impose appropriate conditions on borrower income and assets, and it included loans with minimal down payments. We know how that turned out . . . READ MORE

COMMENTARY/THE NEW LEDGER
THE DEATH OF AMERICAN SUBURBS?
FRANCIS CIANFRACCO/BEN DOMENECH: Podcast discussion about what the housing-market collapse has done in the hardest-hit areas in the country -- specifically, suburban California. Are suburbs really halving in value? What are the societal ramifications of it not making economic sense to live in suburbs? . . . READ MORE

LABOR DAY TRAVEL DOWN

2009-09-04T11:56:00.001-04:00

BLOOMBERG: This Labor Day, traditionally the last travel weekend of summer in the U.S., more people will opt for so-called staycations. AAA, the largest U.S. motoring organization, predicts weekend travel will tumble 13 percent from last year, a decline compounded by the fact that Labor Day falls almost a week later than it did last year and many children have already returned to school. Those who do go away are shortening trips and seeking out discount hotel rates and airfares . . . READ MORE

UNEMPLOYMENT REACHES 9.7%

2009-09-04T10:55:00.003-04:00

HIGHEST RATE IN 26 YEARS
MARKET WATCH: The U.S. unemployment rate jumped to a 26-year high of 9.7% in August as nonfarm payrolls fell by 216,000, the 20th consecutive monthly decline, the Labor Department estimated Friday. U.S. payrolls have dropped by 6.9 million to 131.2 million since the recession began in December 2007, the government data showed. Unemployment has increased by 7.4 million during the recession to 14.9 million. . . . READ MORE

LABOR DEPARTMENT REPORT

FINANCIAL TIMES: The US unemployment rate has more than doubled in the past two years . . . Job losses were widespread across industries that produce goods, with construction and manufacturing losing 65,000 and 63,000 jobs respectively . . . READ MORE

POLITICO: August may be over, but it's causing one last headache for the Obama administration as the jobless rate jumped up to 9.7 percent, the highest point yet this recession and higher than what economists expected from the monthly report. . . . "The number that's going to matter to most people is the unemployment rate, and 9.7 percent is disconcerting," said Mark Zandi, chief economist for Moody’s Economy.com . . . READ MORE

WALL STREET P.M. 09.03.09:STOCKS RECOVER GROUND

2009-09-03T16:07:00.009-04:00

DJIA: +63.94 CLOSE 9,344.61
S&P 500 +8.49 CLOSE 1,003.24
NASDAQ +16.13 CLOSE 1,983.20

MARKET ENDS 4 DAYS OF LOSSES
ASSOCIATED PRESS: Stocks are higher after a four-day slide but investors are holding off making big moves ahead of a key government report on unemployment . . . READ MORE

FRIDAY JOBS REPORT ANTICIPATED
THE STREET: All signs are pointing to a worse-than-expected nonfarm payrolls report Friday morning, market analysts say, but they argue that even a disappointing release won't put a significant dent in equity markets . . . The Labor Department's official jobs report, due at 8:30 a.m. EDT Friday, is expected to say the U.S. economy lost 225,000 jobs last month, according to a Reuters poll of economists. The unemployment rate is expected to tick higher to 9.5% from 9.4% in July . . . READ MORE

REUTERS: Friday's U.S. government payroll report will likely bring volatility to the U.S. Treasuries market, if not clarity for investors. Even if the report were to show slowing job losses, it will not be enough to shake nagging doubts that a nascent U.S. economic recovery could fizzle, analysts said on Thursday. "I'm not sure how much the data will tell us," said T.J. Marta, market strategist at Marta on the Markets in Scotch Plains, New Jersey. "We have a pretty big structural employment problem, and that's not going away." . . . Anxiety over the economy has emerged despite this week's encouraging data on the manufacturing and housing sectors . . . READ MORE

JOBLESS CLAIMS EXCEED FORECAST
BLOOMBERG: More Americans than anticipated filed jobless-benefit claims last week, indicating companies remain focused on cutting expenses . . . Applications fell by 4,000 to 570,000 in the week ended Aug. 29, exceeding the 564,000 median forecast of economists surveyed by Bloomberg News . . . The total number of people collecting unemployment insurance climbed . . . The firings are one reason economists project consumer spending, which accounts for 70 percent of the economy, will be slow to strengthen . . . READ MORE

SERVICE-SECTOR LOSSES SLOWING
ASSOCIATED PRESS: The Institute for Supply Management said Thursday that its service index, which covers hospitals, retailers, financial services companies and more, came in at 48.4, up from 46.4 in July. It was the best reading in 11 months . . . Still, any reading below 50 indicates the service sector is shrinking . . . READ MORE

AUGUST RETAIL SALES MIXED
CNN/MONEY: Retailers delivered some of their best same-store sales in almost a year in August, with apparel retailers and discounters benefiting from some early back-to-school buying . . . Still, a quick recovery is not expected since fully half of retailers missed projections, leaving the Christmas buying season still a bit unknown. . . . READ MORE

UNCERTAINTY DRIVES GOLD UP;
PRICE NEARS $1,000 AN OUNCE
REUTERS: Gold prices rallied on Thursday to their highest level since February on strong investment demand amid caution ahead of key U.S. non-farm payrolls data on Friday . . . "Investment demand for gold is still very strong, and that is going to help drive the price higher over time," said Helen Henton, head of commodities at Standard Chartered. "We think it's going to break $1,000 by Q4, mainly driven by a weakening U.S. dollar." . . . READ MORE

WALL STREET JOURNAL: Friday's U.S. nonfarm payrolls data may offer gold the boost it needs to reach a four-digit price, said Larry Young, senior trader with Infinity Futures . . . A weaker-than-expected reading could spark further safe-haven buying, while a stronger-than-forecast number could incite inflation-hedge buying, Young said . . . "We could easily be at a thousand in the blink of an eye." . . . READ MORE

TREASURY TO AUCTION $70 BILLION
MARKETWATCH: Treasurys fell Thursday, sending yields higher, as stocks edged up and the U.S. government said it planned to sell $70 billion in Treasury bonds and notes next week . . . READ MORE

WALL STREET P.M. 09.02.09:STOCKS FALL FOURTH DAY

2009-09-02T16:30:00.012-04:00

DJIA: -29.93 CLOSE 9,280.67
S&P 500 -3.29 CLOSE 994.75
NASDAQ -1.82 CLOSE 1,967.07

MARKETWATCH: U.S. stocks on Wednesday finished lower for a fourth consecutive session, with financials hardest hit in a day of cautious trade in the countdown to Friday's much-anticipated monthly jobs report . . . READ MORE

ASSOCIATED PRESS: The stock market extended its slide as investors worried that a weak job market will trip up a recovery in the economy . . . The Dow Jones industrial average lost another 30 points after skidding 186 points Tuesday . . . READ MORE

FED OFFICIALS: SLOW RECOVERY,
ECONOMY REMAINS 'VULNERABLE'
BLOOMBERG: Federal Reserve officials in their August meeting discussed extending the end-date for purchases of mortgage bonds to minimize any market disruptions, and expressed concern about the pace of a likely economic recovery . . . "Most participants saw the economy as likely to recover only slowly during the second half of this year, and all saw it as still vulnerable to adverse shocks," the Fed said in today’s minutes. "Labor market conditions remained of particular concern to meeting participants" . . . READ MORE

CNN/MONEY: Fed members added that the chances of the economy getting worse are "now considerably reduced" but that the recovery is "likely to be damped." Those concerns are likely the biggest reason why the Fed left its key interest rate near 0% at the meeting and did not announce any move to pull back on the more than $1 trillion it has pumped into the economy over the last year through various lending programs . . . READ MORE

FDIC CHIEF BAIR WARNS ABOUT
'LOOMING PROBLEM' FOR BANKS
REUTERS: FDIC head Sheila Bair told CNBC Tuesday evening that commercial real estate loans remain a "looming problem" for banks' balance sheets and she expects the area to increasingly be a driver for bank failures during the remainder of this year and 2010. So far, this year 84 U.S. banks have failed, compared to 25 last year and only three in 2008 . . . READ MORE

$1 TRILLION 'TIME BOMB'
WALL STREET JOURNAL: U.S. banks are holding more than $1 trillion of mortgages backed by commercial property that is fast losing value. According to analysts at Deutsche Bank AG, as property value declines and scarce credit continue to drive commercial property developers and investors into default, total lifetime losses on banks' $1 trillion "core" commercial-mortgage holdings, or those backed by income-producing properties, would reach between 11.6% and 15.3%, or $115 billion and $150 billion . . . READ MORE

GOLD PRICE HITS 3-MONTH HIGH
WALL STREET JOURNAL: Gold companies' shares soared Wednesday amid a sharp rally in gold prices . . . Gold prices reached their highest point in nearly three months as the U.S. dollar weakened and participants bought in a flight-to-quality bid based on economic uncertainty and concerns about the stock market . . . READ MORE

REUTERS: Dollar weakness also made gold more attractive to non-U.S. investors, traders said, while the move through pivotal technical resistance levels triggered heavy buying. "In the mid to long term, gold is definitely a buy -- especially if you have lost trust in stocks, or expect a down-move there," Commerzbank senior trader Michael Kempinski said . . . READ MORE

WATCHDOG: SEC MISSED
'RED FLAGS' ON MADOFF
NEW YORK TIMES: The Securities and Exchange Commission repeatedly missed chances, because of inexperience and incompetence, to head off the huge investment fraud carried out for years by the disgraced money manager, Bernard L. Madoff . . . In a damning report on the S.E.C.’s performance, the agency’s inspector general, H. David Kotz, said numerous “red flags” had been missed by the agency, including some warnings sounded by journalists, well before Mr. Madoff’s Ponzi scheme imploded in 2008 . . . READ MORE

BP FINDS OIL DEEP IN GULF
CNN/MONEY: BP has drilled one of the deepest oil reservoirs ever discovered, the company said Wednesday. The Tiber well, located about 250 miles southeast of Houston in the Gulf of Mexico, was drilled about 35,055 feet deep . . . READ MORE

CAP-AND-TRADE WOULD COST
UP TO $600 BILLION A YEAR
NEW YORK TIMES: It will cost between $500 billion and $600 billion every year for the next 10 years to allow developing nations to grow using renewable energy resources, instead of relying on dirty fuels that worsen global warming, according to a United Nations report . . . READ MORE

U.S. WILL 'PAY . . A LONG TIME'FOR BAILOUTS, AUTHOR SAYS

2009-09-02T05:45:00.000-04:00

AMERICAN SPECTATOR: The American economy will suffer "a long time" as a result of last year's federal bailout of the financial industry, according to Johan Norberg, author of a new book about the policies that caused the banking meltdown. . . . "The bailouts . . . the debts -- we won't be able to pay them back. We're going to pay for it for a long time . . . READ MORE

HOYER FACES BIG CROWDAT HEALTH-CARE TOWN HALL

2009-09-02T00:33:00.001-04:00

By JIMMIE BISE JR.
NTCNews.com
WALDORF, MD - A standing room-only audience of more than 1,500 crowded into North Point High School in Southern Maryland for a spirited health care town hall meeting hosted by Representative Steny Hoyer (D-Md.).
The crowd, some of whom began queuing before 4 P.M. for the 7 P.M. meeting, showed little sign outside of the boisterousness they would show once the meeting began. Hoyer was jeered by opponents of the Democratic health care plan and cheered loudly by supporters, according to Politico, One man was escorted from the meeting by police.
The second-ranking Democrat in the House, Hoyer was repeatedly questioned about whether tort-reform provisions -- to protect health-care providers against lawsuits -- would be included in the legislation, but refused to commit to support such a measure, the Baltimore Sun noted.
Hoyer also maintained his support for the controversial "public option" provision in the legislation, the Associated Press reported.

MORE COVERAGE:

300 WORDS OR LESS 09.02.09

2009-09-02T00:01:00.002-04:00

The Sweep of History Back Towards Federalism

~150 years ago, an agrarian, Jeffersonian South waged war against an industrial, corporatist North. Federalism, where each State delegated some portion of its sovereignty to a central government, was diminished in response to the South's rash secession. Subordinating the states was justifiable as a response, and, as appropriate, Lincoln suspended habeas corpus, issued the Gettysburg Address, and used the Federal government's authority to win the war and preserve the Union.

Lost were the fine points of the South's arguments put forth by men like Randolph and Calhoun, where States jealously guarding their ability to tend to its citizens in ways both local and traditional. With the ratification of the 16th and 17th amendments and the Federal Reserve Act passed, Washington D.C. was enshrined as the central source of power in America. Lacking cash, principle, and a morale mandate, the States had no recourse against Wilson's Progressivism or F.D.R's sweeping, bureaucratic Proceduralism.

Now, Progressivism and Proceduralism have reached their logical nationalized limit - health care, insurance, banking, market regulation, and energy taxes build upon nationalized education policy, drug policy, and social safety nets. What was once arguably compassion has turned into an excuse to reinvent Lincoln himself, less the mandate or moral clarity involved in preserving the Union and abolishing slavery.

With the election of an African American President, surely it is time to revisit the issue of State's rights, now undeniably free of the specter of slavery. We should revisit the 16th Amendment and its support of national income tax, and repeal the 17th Amendment, effectively re-energizing state legislatures in their long argument with an effete and ineffective U.S. Congress. In short, it is time to reestablish the States as equal partners, willfully participating in a Federalist system.

--AnalogKid

MARKET UPDATE: BANKINGFEARS PUSH STOCKS DOWN

2009-09-01T14:25:00.003-04:00

REUTERS/FORBES: U.S. stocks fell sharply Tuesday as growing concerns about the U.S. banking system and over whether a recent rally in equity markets is warranted drove investors to the relative safety of bonds and the dollar . . . READ MORE

CNN/MONEY: Markets broadly sold off Tuesday afternoon, as investors took a big step back at the start of what is typically a rough month, betting that stocks have risen too far too fast without any underlying support . . READ MORE

THIRD DAY OF WALL ST. LOSSES
BLOOMBERG: U.S. stocks fell for a third day, the longest losing streak for the Standard & Poor’s 500 Index since June, as concern banks will post more losses overshadowed manufacturing and housing data that topped estimates . . . READ MORE

BERNSTEIN DOWNGRADES A.I.G.
FORBES: AIG fell 17% after Sanford C. Bernstein dropped the stock to "underperform," on concerns that Washington will pull back on financial assistance as AIG recovers. The firm is still on the hook for $80 billion in federal loans . . . READ MORE

HOUSING: FL. FORECLOSURES UP
SO. FLA. BIZ JOURNAL: The number of South Floridians facing foreclosure increased by 39 percent, year-over-year, in August, with more than 7,800 foreclosure filings in Miami-Dade, Broward and Palm Beach counties . . . "South Florida is on pace to register more than 100,000 foreclosure filings in 2009, up from 75,000 in 2008 and 33,000 in 2007," said Peter Zalewski, a principal with the Bal Harbour-based real estate consultancy Condo Vultures . . . READ MORE

BONDS: PRICE UP, YIELDS DOWN
EXAMINER: There is no sector that isn’t feeling the pinch as we enter what is typically the September market doldrums. Investors are again fleeing to the relative safety of treasury bonds, driving the price up, and yields down. Mortgage rates are the beneficiary of this Wall Street slump . . . READ MORE

POLL: OBAMA DISAPPROVALREACHES NEW HIGH 42%

2009-08-31T08:31:00.003-04:00

RASMUSSEN REPORTS: The Rasmussen Reports daily Presidential Tracking Poll shows 42% strongly disapprove. That’s the highest level oyet recorded for this President and it gives Obama a Presidential Approval Index rating of -10 . . . READ MORE

A.M. MARKET UPDATE 08.31.09CHINESE STOCKS LOSE 6%

2009-08-31T05:57:00.012-04:00

EUROPEAN INDEXES ALSO DOWN
REUTERS: Chinese stocks sank 6% to a three-month low on Monday, weighing on Asian stocks and sapping investor willingness to put money at risk . . . Major European stock futures fell 0.9%, following commodity prices lower, in trade thinned by a holiday in London. U.S. stock futures fell 0.6% and U.S. Treasury futures were up 0.2% . . . READ MORE

NEW YORK TIMES: The Shanghai composite index plunged 6.75 percent on Monday to close out August with a drop of 21.8 percent, the worst performance for the month among the world's major exchanges. Monday’s fall, coupled with a drop of nearly 3 percent last Friday, has made for "a huge, huge decline," said Dariusz Kowalczyk, chief investment strategist at SJS Markets in Hong Kong . . . READ MORE

WALL ST. SELLOFF FORECAST
CNN/MONEY: U.S. stocks were poised to tumble Monday morning, after another sharp fall in Chinese stocks knocked back investor confidence. At 6:20 a.m. ET, the Dow Jones industrial average, Nasdaq 100 and Standard & Poor's 500 futures were sharply lower . . . READS MORE

SEPTEMBER SWOON NEARS
BUSINESS TIMES: The latest phase of the six-month long US stock market rally has shown remarkable resilience, as momentum driven trading continues to defy arguments that stocks are now overvalued by as much as 25 per cent. But the calls for the rally's demise are growing with the first trading session of September looming tomorrow . . . READ MORE

U.S. UNEMPLOYMENT WORRIES
ASSOCIATED PRESS: The most anxiously awaited piece of data his week is the government's employment report. . . . Economists surveyed by Thomson Reuters expect another 220,000 jobs were lost in August, down from 247,000 in July. Any disappointments when Friday's report comes out, and investors' faith in the economy -- and in the bets they've placed since early March -- may be shaken . . . READ MORE

FORBES: The employment report comes out Friday morning and economists expect a loss of 225,000 jobs in August . . . Traders are anxiously watching unemployment, which has remained stubbornly high . . . READ MORE

DOW TREND:

FRIDAY AUG. 28: -36.43
WEEK AUG. 24-28: +194.15
MONTH JULY 28-AUG. 28: +447.48

OIL: RECOVERY QUESTIONS
ASSOCIATED PRESS: Oil prices fell to near $71 a barrel Monday as China's stock market tumbled and commodities investors questioned whether the U.S. economy can recover strongly in the second half . . . READ MORE

BANKING: CRISIS FORECAST?
MARKET ORACLE: The markets appear to be anticipating a banking crisis . . . Long term charts are pointing to the increasing probability that confidence in the integrity of the commercial banking system has been eroding . . . READ MORE

BONDS: INVESTORS SEEK SAFETY
BLOOMBERG: Treasuries rose, heading for their first two-month gain this year, as Chinese stocks fell and investors added to bets the global financial crisis will slow the pace of inflation . . . READ MORE

BUSINESS: CAL. PUBLISHER BANKRUPT
NEW YORK TIMES: Freedom Communications, owner of The Orange County (Calif.) Register and 30 other daily newspapers, is expected to file for bankruptcy this week under a plan that will hand its publications to its lenders . . . The Orange County Register had an average weekday circulation of 230,877 and Sunday circulation of about 300,000 for the six months ended on March 31. The company also owns several broadcast stations nationwide . . . READ MORE

WALL STREET P.M. 08.17.09:FEAR FUELS STOCK SELL-OFF

2009-08-17T16:01:00.018-04:00

DJIA: -186.06 CLOSE 9,135.34
S&P 500 -24.36 CLOSE 979.73
NASDAQ -54.68 CLOSE 1,930.84

RECOVERY DOUBTS EMERGE
MARKIETWATCH: Stocks and commodities suffered a broad-based decline Monday as fear spread around the globe that an economic rebound may be farther off than previously thought . . . READ MORE

CONSUMER SPENDING WOES
INSPIRE INVESTOR RETREAT
CNN/MONEY: Wall Street retreated on Monday, falling for the second straight session, as worries that nervous consumers will pressure a fragile recovery dragged stocks lower after a five-month advance . . . READ MORE

ASSOCIATED PRESS: Investors were already on edge at the start of trading Monday, after China's main market index plunged 5.8 percent overnight . . . Losses spilled over into European and U.S. markets . . . Investors have become increasingly worried that the economy won't be able to emerge from recession if consumers don't increase their spending . . . READ MORE

HOUSING PAIN HITS ECONOMY
CHRISTIAN SCIENCE MONITOR: The unusually steep decline in home prices has caused about one-fourth of America’s household wealth to disappear in the past two years. Despite signs of some stabilization in the housing market lately, by one new estimate one-third of all US mortgage borrowers have "negative equity," with loan balances bigger than their home’s market value . . . READ MORE

MORTGAGE DELINQUENCIES RISE
ASSOCIATED PRESS: The number of people who were late making their mortgage payments shot up 53 percent in the fourth quarter of 2008 from the same period in 2007 . . . READ MORE

CHINA TO BUY U.S. MORTAGES?
REUTERS: China Investment Corp. (CIC) is reportedly set to invest up to $2 billion in U.S. mortgages. CIC plans to invest soon in U.S. taxpayer subsidized investment funds of toxic mortgage-backed securities . . . READ MORE

BB&T TAKES OVER COLONIAL BANK;
FAILURE COSTS F.D.I.C. $2.8 BILLION
BIZJOURNALS: Colonial BancGroup Inc., which is based in Montgomery, Ala., was seized by bank regulators Friday and has been taken over by BB&T Corp of North Carolina. It is the sixth-largest bank to fail in the nation’s history . . . The failure will cost the federal insurance fund $2.8 billion, according to the FDIC . . . READ MORE

COMMENTARY: THE NEW LEDGER
IS THE RECESSION COMING BACK?
FRANCIS CIANFRACCO: Contrary to conventional belief, the conditions are not in place for the kind of strong recovery we’ve seen in the recent past . . . Neither the underlying financial conditions nor the consumer demand are in place for that . . . READ MORE

COMMENTARY/RGE MONITOR
U.S. BANKS UNDERCAPITALIZED
YGES SMITH: Despite the stress test baloney, the banking system is undercapitalized by a large margin. . . . Colonial Bank, a $25 billion bank taken out last Friday, was deemed well capitalized until recently. We noted its much bigger neighbor, $140 billion Regions Bank, similarly deemed to be well capitalized, has effectively said it is insolvent. How many other banks are broke save thanks to overly permissive accounting? . . . READ MORE

VIDEO COMMENTARY: CATO INSTITUTE
BIG GOVERNMENT VS. THE ECONOMY

DEFICIT SOARS; GEITHNER SEEKSINCREASE IN $12 TRILLION LIMIT

2009-08-12T14:22:00.005-04:00

ASSOCIATED PRESS: The government said Wednesday the federal deficit reached $1.27 trillion for the first ten months of the budget year . . .The national debt -- the grand total of accumulated annual deficits -- is now $11.8 trillion, so high that Treasury Secretary Timothy Geithner asked Congress last week to raise the legal limit above the current $12.1 trillion . . . READ MORE

VIDEO: MSNBC
WATCHDOG: GEITHNER MAKING
'$2 BETS ALL OVER THE TABLE'

Visit msnbc.com for Breaking News, World News, and News about the Economy

(Via Huffington Post.)

300 WORDS OR LESS 08.12.09

2009-08-12T06:59:00.004-04:00

If Gladney Is Uninsured, It Doesn’t Matter What You Call Him

Earlier in the week, I did an entry on the assault of Kenneth Gladney at a town hall meeting where Russ Carnahan was supposed to speak. Since then, there has been a lot of discussion about who assaulted whom, who started it, why was the SEIU let in while TEA Partiers were not…things like this. One topic the left has seized on though is the dispute over whether or not Kenneth Gladney has insurance. I have seen one claim, by a conservative site, that he is covered under his wife's insurance. However, several left wing sites delight in claiming that he has no insurance, can't pay his bill but would have insurance under Obamacare. DailyKos remains glib about it. Zandar Versus the Stupid also has a good example.

All of these people discussing Kenneth Gladney's insurance situation are missing the point. Even if he doesn't have health insurance, that does not mean he wants a government run insurance plan. More importantly, this discussion distracts from the real point here. There was an assault that took place. Democrats accuse Republicans of paying people to disrupt these meetings. Then the Democrats bring SEIU thugs to the meetings. The thugs assault a black man and use racial slurs during the assault. Let's just pretend a TEA partier had uttered a racial slur as they passed one of the SEIU members. That would be all the press could talk about! Every left wing blog out there would be wearing their keyboards out with the proof of the racism in the TEA party movement. Instead, a black man handing out conservative fliers was insulted and assaulted. All we get from that is another example of liberal hypocrisy.

--Chance

A.M. MARKET UPDATE: 07.31.09:STREET SEEKS TO EXTEND RALLY

2009-07-31T08:21:00.009-04:00

GDP REPORT: U.S. ECONOMY
SHRANK 1% IN 2ND QUARTER
MARKETWATCH: Treasury prices remained lower Friday, pushing yields up, after the government said the economy shrank 1% in the second quarter, less than economists expected. . . . Economists surveyed by MarketWatch predicted gross domestic product would contract 1.2% in the three months ended in June. The report also includes revisions to past data, which may cause some short-term volatility, traders said . . . READ MORE

SHARP DROP IN CONSUMER SPENDING
BLOOMBERG: Revisions showed the economic downturn last year was even deeper than previously estimated. . . . Consumer spending, which accounts for 70 percent of the economy, shrank more than twice as much as forecast last quarter; analysts anticipate it will take months to recover as job losses mount . . . READ MORE

MORGAN DOWNGRADES DISNEY
fOX BUSINESS: Analysts at J.P. Morgan on Friday cut their rating on Walt Disney Co. . . . "We are downgrading Disney ... based on our thesis that ESPN, parks and consumer products will continue to be a headwind for the company's earnings" . . . READ MORE

CHEVRON 2Q EARNINGS DECLINE
WELT ONLINE: Chevron Corporation today reported earnings of $1.75 billion for the second quarter 2009, compared with $5.98 billion in the 2008 second quarter. Foreign-currency effects reduced earnings in the 2009 quarter by $453 million . . . READ MORE

OBAMA, DEMS TRYING TO SAVE
'CASH FOR CLUNKERS' PROGRAM
CNBC: The Obama administration and Capitol Hill sources told NBC News that efforts are underway to protect the auto sales incentive program, also known as "Cash for Clunkers." . . . "Administration and Congressional officials are working to keep it up and running" . . . READ MORE

'CASH FOR CLUNKERS' BROKE

CEO SALARIES HIGHER THAN
EARNINGS AT BAILOUT BANKS
REUTERS: Bonuses paid to executives at nine banks that received U.S. government bailout money in 2008 were greater than net income at some of the banks, the office of New York Attorney General Andrew Cuomo said on Thursday. Cuomo said employee pay "has become unmoored from the banks' financial performance." . . . READ MORE

ANALYSTS 'LIE' ABOUT EARNINGS
BLOOMBERG: Stock analysts continue to promote corporate earnings lies, insisting that net income isn't really what investors need to know. Instead, their earnings estimates ignore often huge expenditures that can’t help but affect a company's health . . . READ MORE

COMMENTARY/AMERICAN SPECTATOR
INFLATION FUELING STOCK RALLY?
ROBERT STACY McCAIN: A few months ago, when I asked a private-sector economist what he thought of the policy now being pursued by the Fed, Treasury and Congress, he answered: "They're trying to re-inflate the bubble." That stock prices could go up as a result -- the deficit-funded flood of currency being partially diverted into securities -- is certainly a possible consequence of this inflationary policy. . . . READ MORE

'CASH FOR CLUNKERS' BROKE

2009-07-30T23:32:00.006-04:00

WASHINGTON POST: The government's $1 billion "cash for clunkers" program, designed to boost stagnant auto sales, is almost out of money, putting its future in question, government officials said Thursday . . . READ MORE

ASSOCIATED PRESS: The Transportation Department called congressional offices late Thursday to alert them to the decision to halt the program, which offered owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle . . . READ MORE

POLITICO: The program . . . was supposed to expire at the end of October. But in the one week since it took effect, it appears to have run dry of the $1 billion allocated to it . . . READ MORE

BLOG REACTION: MICHELLE MALKIN, HOT AIR, INSTAPUNDIT, DON SURBER, THE OTHER McCAIN, RIGHT WING NEWS, MEMEORANDUM

COMMENTARY/CATO INSTITUTE
CHRIS MOODY: In June, Cato senior fellow Alan Reynolds explained how you can use that money to buy the muscle car or truck you always wanted: "Consider how easy it would be to game this giveaway program by using that $4,500 voucher to buy a big SUV or V-8 muscle car" . . . READ MORE

COMMENTARY/AMERICAN ISSUES PROJECT
JIMMIE BISE: We know that the bureaucrats in Washington are absolutely horrible at predicting what actual human beings will do in a given situation, but rarely do we get to see their failure as clearly as we can now . . . READ MORE

IRANIAN SECURITY CONTINUESCRACKDOWN AT MEMORIAL SERVICE

2009-07-30T12:07:00.003-04:00

WASHINGTON TIMES: Iranian police used tear gas and beatings to break up a graveside memorial attended by thousands in Tehran. The rally was held at the Behesht-e Zahra cemetary where Neda Agha Soltan, killed while watching a protest march on June 20th, was buried. According to witnesses, the situation reached a critical mass as an ally of opposition leader Mir Hossein Mousavi attempted to give a speech. Mousavi himself was prevented from attending by a crowd of police who surrounded him as he arrived. Some in the crowd chanted "Neda is alive, Ahmadinejad is dead" and some plainclothes security officers reportedly chanted "Death to those who are against the supreme leader" in return. . . .READ MORE

A.M. MARKET UPDATE 07.30.09:WALL STREET WATCHES CHINA

2009-07-30T01:24:00.004-04:00

ASIAN MARKETS BOUNCE BACK
ASSOCIATED PRESS: Asian markets rebounded Thursday as China tried to allay concerns it would curb lending that's helped fuel a recovery in the region's second-biggest economy. European markets were mixed. Japanese shares, meanwhile, closed at their highest level in almost 10 months as major carmakers like Nissan Motor and Honda Motor jumped on stronger-than-expected earnings . . . READ MORE

BEIJING MAY REIGN IN STOCKS
BLOOMBERG: China’s government may take action to slow the world's second-best-performing stock market because of concern prices rose too fast, Robeco Hong Kong Ltd.'s Arnout van Rijn said. . . . "The Chinese authorities are actually not very happy with the stock market moving up as quickly as that," van Rijn, chief investment officer of Robeco Hong Kong Ltd., told Bloomberg Television. "They will think about things, how to put this into a broader perspective and take things more slowly" . . . READ MORE

CREDIT TIGHTENS IN CHINA
BLOOMBERG: China’s overnight money-market rate rose for the first time in more than a week on speculation the availability of credit is tightening as companies recommence share offerings and because of a surge in bank lending . . . READ MORE

U.S. BUSINESS NEWS
SENATE PROBES GOLDMAN
REUTERS: Goldman Sachs Group Inc and Deutsche Bank AG were issued subpoenas by a U.S. Senate panel looking for evidence of fraud in the 2008 mortgage-market meltdown, the Wall Street Journal said, citing people familiar with the matter. . . . Washington Mutual Inc, which is now mostly owned by JP Morgan Chase & Co, was also issued a subpoena by the U.S. Senate Permanent Subcommittee on Investigations . . . READ MORE

TODAY'S $28 BILLION TREASURY
AUCTION HAS MARKET 'NERVOUS'
BLOOMBERG: Treasuries fell Wednesday on speculation demand is waning for the $115 billion of debt the U.S. government is selling this week to finance a growing budget deficit. Longer-maturity bonds led declines before a $28 billion sale of seven-year notes today, the last of the government's four auctions this week. "The market is nervous," said Hideo Shimomura, chief fund investor in Tokyo at Mitsubishi UFJ Asset Management Co. "A lot of people are thinking about how much demand there will be from central banks at the auction" . . . READ MORE

UNEMPLOYMENT PUSHING MORE
HOMEOWNERS TO FORECLOSURE
REUTERS: Cities in the U.S. Sun Belt states of California, Florida, Nevada and Arizona dominated the record foreclosure spree in the first half of the year, but distress in other regions emerged as joblessness spread, RealtyTrac said on Thursday . . . With the unemployment rate near a 26-year high and many employers cutting wages, more consumers in areas that were initially spared in the foreclosure explosion are now behind in their home loan payments . . . READ MORE

F.D.I.C. TO BREAK UP BAD BANKS
WALL STREET JOURNAL: The Federal Deposit Insurance Corp., grappling with the worst banking crisis since the 1990s, is poised to start breaking failed financial institutions into good and bad pieces in an effort to drum up more interest from prospective buyers . . . READ MORE

MICROSOFT, YAHOO JOIN
FORCES AGAINST GOOGLE
USA TODAY: Yahoo's 10-year deal with Microsoft to battle Google for online search customers and ad sales is the boldest initiative Carol Bartz has made since she became Yahoo's CEO in January. But . . . even her vow that the alliance would deliver "boatloads of value for Yahoo" left many investors stony faced . . . Yahoo shares fell 12% on Wednesday to $15.14 as Microsoft shares rose 1%, to $23.80 . . . READ MORE

HEALTH CARE: WAXMAN GETSDEAL WITH 'BLUE DOG' DEMS

2009-07-29T23:27:00.004-04:00

BILL WILL CLEAR COMMITTEE;
HOUSE VOTE DELAYED TO FALL
POLITICO: A quartet of moderate Blue Dog Democrats on the Energy and Commerce Committee agreed to support the Democrats' sweeping health care bill as long as party leaders postpone a House vote until the fall and Chairman Henry Waxman (D-Calif.) cut its costs by $100 billion, exempt more small businesses from a requirement to provide health care to their employees and allow doctors, hospitals and other providers to negotiate their payments directly with the government under any public coverage plan . . . READ MORE

BLUE DOG LEADER MIKE ROSS
CLAIMS COMPROMISE VICTORY
THE HILL: "We cut the cost of the bill, delayed a floor vote and ensured that the public option will not be forced on anyone," said Rep. Mike Ross (D-Ark.) who has led the negotiations for the Blue Dogs. "Members will have time to go home to talk to their constituents and actually read the bill." . . . READ MORE

COMMENTARY/AMERICAN SPECTATOR
OPPONENTS WILL PRESSURE
CONGRESS DURING RECESS
PHILIP KLEIN: By delaying the full House vote until September, the deal means that there will still be time for Blue Dogs to change their mind on the final bill if they take a lot of heat from their constituents during August recess . . . READ MORE

BLOG REACTION: MONIQUE STUART, HOT AIR, DON SURBER, LEGAL INSURRECTION, RED STATE, THE OTHER McCAIN, MEMEORANDUM

US ADVISERS: PREGNANT WOMENFIRST FOR FLU TREATMENT

2009-07-29T17:50:00.009-04:00

HEALTH CARE WORKERS
FOLLOW CLOSE SECOND

REUTERS: Prompted by expert recommendations from the Centers for Disease Control, the Advisory Panel on Immunization Practices has announced that pregnant women should be the first to receive vaccines to combat the H1N1 influenza virus. Pregnant women have been struck particularly hard by the Swine Flu, as much as four times more than the general population. The panel also recommended that health care workers and those who care for infants be given high priority. . . .READ MORE

HOLOCAUST SHOOTER INDICTED

2009-07-29T17:33:00.006-04:00

SEVEN-COUNT INDICTMENT INCLUDES
POSSIBILITY OF DEATH PENALTY

THE HILL: A Federal grand jury has indicted the man arrested for killing a security guard at the National Holocaust Museum. The seven-count indictment charges James von Brunn with murder and violations of various federal civil rights and hate-crime laws as well as Washington DC's gun laws. If convicted, he could face life in prison if not the dealth penalty. . . .READ MORE

A.M. MARKET UPDATE 07.29.09: TREASURY CONCERN LOOMS

2009-07-29T05:25:00.002-04:00

TUESDAY AUCTION DISAPPOINTS
WALL STREET JOURNAL: A disappointing two-year Treasury auction Tuesday was seen as a barometer for the government's remaining Treasury note sales this week. The worse-than-expected results don't bode well for Treasury's auction Wednesday of a record $39 billion in five-year notes. Treasury will also sell seven-year notes Thursday. In total, the government will offer up more than $200 billion of Treasury notes and bills this week, a record amount. "The rather poor two-year auction results are concerning," said Robert Allen, managing director at Banc of America Securities . . . READ MORE

WALL ST. FUTURES POINT LOWER
CNN/MONEY: U.S. stocks were poised to fall at Wednesday's open, as investors prepared to retreat after pushing Wall Street higher over such a short period of time. At 4:56 a.m. ET, Dow Jones industrial average, Standard & Poor's 500 and Nasdaq 100 futures were lower . . . READ MORE

ASIAN STOCKS SLUMP
BLOOMBURG: Asian stocks dropped for the first time in 12 days . . . China’s Shanghai Composite Index slumped 5 percent. The MSCI Asia Pacific Index lost 1 percent to 109.38 as of 6:10 p.m. in Tokyo, with two stocks falling for each one that rose. The gauge had climbed 13 percent in the past 11 days, the longest winning streak since January 2004. . . . "Investors are getting more selective now since equities are no longer cheap," said Manpreet Gill, Asian strategist at Barclays Wealth, which has $238 billion in assets. "A further correction is possible." Hong Kong's Hang Seng Index slumped 2.4 percent. . . . READ MORE

WALL STREET P.M. 07.27.09: DOWENDS HIGHER ON LATE RALLY

2009-07-27T16:10:00.012-04:00

DJIA: +15.35 CLOSE 9,108.59
S&P 500 +2.92 CLOSE 982.18
NASDAQ +1.93 CLOSE 1,967.89

HOME SALES BOOST BANK STOCKS
CNBC: Stocks eked out a gain Monday as banks got a boost from a jump in new-home sales . . . Traders were worried about a record $200 billion of government debt flooding the market this week, which kicked off with $6 billion of 20-year TIPS, or inflation-protected securities . . . The Treasury also auctioned $32 billion of three-month bills and $31 billion of six-month bills to decent demand as part of its routine weekly auction . . . READ MORE

'GOOD COMPARED TO WHAT?'
ASSOCIATED PRESS: Disappointing earnings from Verizon Communications Inc., Aetna Inc. and Corning Inc. kept the market's gains in check . . . RadioShack Corp. reported higher second-quarter earnings that beat forecasts, but mainly from cost-cutting -- a theme that has become familiar this earnings season and has left many investors disappointed . . . "Last week was dubbed as a good earnings week, but good compared to what?" asked David Hefty, CEO of Cornerstone Wealth Management in Auburn, Ind. "It doesn't take a lot to get the market excited these days" . . . READ MORE

MARKETS REACT TO RECORD
TREASURY BOND AUCTIONS
WALL STREET JOURNAL: Investors are busy building discounts into the Treasurys market as the government prepares to set yet another record for weekly debt issuance. Monday's $6 billion auction of 20-year inflation-linked government bonds kicks off a $205 billion debt extravaganza this week in the Treasurys market. That includes $90 billion of bills with maturities up to one year and $109 billion of notes, starting with Tuesday's $42 billion auction of two-year paper . . . READ MORE

WEEK'S $211 BILLION DEBT SALE
CAUSES CONCERNS IN MARKET
CNBC: Investors remain worried that the global market may have difficulty digesting the $211 billion of debt to be sold this week . . . "We expect demand to develop for the Treasury auctions, but $211 billion is a lot of paper for a summer holiday week," said Andrew Brenner, senior vice president at MF Global in New York . . . READ MORE

BONDS: 'OVERWHELMING SUPPLY'?
MARKETWATCH: This week's Treasury auctions, which will surpass the record $104 billion sold in late June, should bring back in play the issue of "overwhelming supply," a valid concern offset so far "by the outlook for growth, or lack thereof, in the second half of the year," said Dan Greenhaus, an analyst with the market strategy group at Miller Tabak & Co. "Should below trend growth prove a reality, the potential impact on corporate earnings, stock prices and the Treasury market cannot be discounted" . . . READ MORE

AMAZON SLIPS ON 'SELL' RATING
CNN/MONEY: Amazon (AMZN) fell 3% to $83.85 in early trading after BWS Financial downgraded the online retail giant to a sell rating. Analyst Hamed Khorsand said the company will be hard pressed to achieve its long-term goal of 5% operating margins, given its high spending on technology and discount-shipping programs like Amazon Prime . . . READ MORE

VOLATILITY INDEX SPIKES UP
CNBC: The CBOE Volatility Index (VIX) is up 7 percent today; traders note that the force of the rally and the uninterrupted nature of it has a lot of people looking for a pullback. The first sign of that would be an increase in options activity, which is what the VIX tracks . . . It has been declining almost in a straight line since the March lows, so a 7 percent rise in one day has the attention of traders . . . READ MORE

EXEC'S $100 MILLION BONUS
DRAWS HEAT FOR CITIGROUP
CBS: The controversy over executive pay in the financial sector appears far from over, with Citigroup and the government poised to clash over the bank's scheduled $100 million bonus to energy trader Andrew J. Hall later this year . . . Citigroup is on the hook for $45 billion in government aid . . . READ MORE

CRUDE OIL TOPS $68/BARREL
WALL STREET JOURNAL: Crude futures finished slightly higher Monday . . . rally has lifted oil prices for nine consecutive trading days. Light, sweet crude for September delivery settled 33 cents, or 0.5% higher, at $68.38 a barrel . . . Many market participants remain skeptical about crude's recent rally . . . U.S. oil inventories are still 16% above last year . . . READ MORE

CURRENCY MARKET
DOLLAR, YEN FALL VS. EURO
REUTERS: The U.S. dollar dropped to a more than seven-week low against the euro on Monday as a jump in U.S. new-home sales bolstered the market's appetite for riskier assets . . . The yen also fell broadly, pushing the dollar to its highest level versus the Japanese currency in three weeks and lifting the euro to its strongest level in nearly a month. Both the dollar and yen tend to fall when risk appetite improves . . . READ MORE

CNN/MONEY ANALYSIS
EARNINGS KEY TO MARKET WEEK
ALEXANDRA TWIN: Can a recharged stock market rally withstand the biggest week of corporate profit reports yet?. . . This week brings profit reports from 146 of the S&P 500 companies, or 29% of the broad index . . . Chevron, Exxon Mobil, Travelers, Walt Disney . . . "Given the pessimistic outlook going into the earnings period, the results have been pretty good so far, spurring the last week or so of gains," said Karl Mills, president and chief investment officer at Jurika Mills & Keifer. "But the economic recovery is going to be a jerky W and the market will probaby follow the same pattern . . . For stocks, we're probably near the top of the current upswing" . . . READ MORE

VERIZON EARNINGS DOWN 21%

2009-07-27T10:56:00.001-04:00

WALL STREET JOURNAL: Verizon Communications posted a 21% decline in its second-quarter net income on Monday as it suffered from a pullback in business spending. . . . Overall, Verizon reported net of $1.48 billion, or 52 cents a share, down from $1.88 billion, or 66 cents, a year earlier. Adjusted earnings . . . were 63 cents a share. . . READ MORE

JUNE NEW HOME SALES UP

2009-07-27T10:50:00.000-04:00

CNN/MONEY: Sales of newly constructed single-family houses spiked 11% in June to an annualized rate of 384,000 homes. . . . However, sales are still 28% below the levels of a year ago, when new homes sold in June at an annualized rate of 530,000. Four years ago, during the height of the housing boom, the sales rate for June was 1,374,000, nearly three-and-a-half times higher than last month. . . . READ MORE

NTC SPECIAL REPORT: RALLYENDS WITH DOW OVER 9,000

2009-07-24T23:19:00.008-04:00

LOSSES FOR MICROSOFT HALT
WALL STREET'S 12-DAY SURGE
FOX BUSINESS: Wall Street had an amazing run this week, but the rally stalled on Friday. The Nasdaq Composite was up 12 days in a row before retreating today and the Dow plowed through the 9,000 mark for the first time since January this week. Microsoft shares plunged in heavy trading after the company reported its first drop in annual sales since the company went public in the early 1980s . . . READ MORE

ANALYST: TECH SECTOR WORRIES
CNN/MONEY: Timothy Ghriskey of Solaris Asset Management said that Microsoft raises worries about the ability of technology to continue leading the market. "Technology has been one of the strongest sections of the market year to date and in the recent run," he said . . . READ MORE

IS DOW 'OVERVALUED'?
FORTUNE: Since their lows on March 9, the Dow has climbed 37% while the S&P 500 has gained 43%. Strategists say losses may come in the next two months as stocks fall back to normal valuations. The average stock in the S&P 500 trades at 17 times earnings compared to 13.5 just three months ago. "The Dow has come very far and very fast," says Hugh Johnson, chief investment officer of Johnson Illington Advisors, who oversees more than $1.5 billion in assets. "On a short-term basis it is somewhat overvalued" . . . READ MORE

ROUBINI SEES 'PERFECT STORM'
BLOOMBERG: The global economy may fall back into a recession by late 2010 or 2011 because of rising government debt, higher oil prices and a lack of job growth, said Nouriel Roubini, the New York University economist who predicted the credit crisis. A "perfect storm" of fiscal deficits, rising bond yields, "soaring" oil prices, weak profits and a stagnant labor market could "blow the recovering world economy back into a double-dip recession," he wrote in a research note today. "It is getting more likely unless a clear exit strategy from the massive monetary and fiscal stimulus is outlined even before it is implemented" . . . READ MORE

CONSUMER CONFIDENCE FALLS
BLOOMBERG: Confidence among U.S. consumers fell in July for the first time in five months as mounting unemployment and stagnant wages shook households . . . The biggest employment slump of any recession in the last eight decades is making Americans less secure, which is likely to restrain spending . . . READ MORE

GALLUP: 48% RATE ECONOMY 'POOR'

UNEMPLOYMENT 'STANDSTILL':
MILLIONS WAIT FOR BENEFITS
NY DAILY NEWS: As the unemployment rate continues to rise and jobless benefit checks become more crucial than ever, the nation's unemployment system is reaching a standstill. Millions of unemployed Americans have been waiting for months for decisions about their unemployment benefits, while thousands have been waiting for actual checks . . . State and federal unemployment systems are facing rock-bottom funding, forcing states to distribute benefit checks with money they do not have . . . READ MORE

SIX GEORGIA BANKS SEIZED;
REAL-ESTATE SLUMP BLAMED
AP/ATLANTA JOURNAL-CONSTITUTION: Regulators on Friday shut six banks in Georgia and a small bank in New York state, raising to 64 the number of federally insured banks to fail this year . . . With the latest closings, 16 Georgia banks have failed this year, more than in any other state. Most of the failures have involved banks in the Atlanta area, where the collapse of the real estate market brought economic dislocation . . . READ MORE

COMMERCIAL REAL ESTATE
PUTS PRESSURE ON BANKS
FORTUNE: Regional banks can no longer ignore the elephant in the room -- their exposure to the commercial real estate bust . . . analysts expect credit problems over the next year to center on commercial real estate -- mortgages on office and apartment buildings and shopping malls, as well as construction, development and industrial loans. U.S. banks hold some $1.8 trillion worth of commercial loans, according to Federal Reserve data . . . With financing markets locked up and the economy still mired in recession -- unemployment is at a 26-year high while capacity utilization, a key measure of industrial production, recently hit a record low -- observers fear a wave of loans will go bad in coming quarters . . . READ MORE

CATO COMMENTARY
BERNANKE MUST GO
MARK A. CALABRIA: If his hearings this week before the House and Senate made one thing clear, it is that Fed chairman Ben Bernanke has lost the confidence of Congress, and likely also that of the American public.Were Bernanke's only problem a loss of congressional confidence, he could overcome it. However, the erosion of public trust in the Fed has been the result of a long string of policy failures, which have overshadowed the few successes . . . READ MORE

HERITAGE COMMENTARY
MINIMUM WAGE HIKE HURTS
REP. PETE OLSON (R-TEXAS): When the three-phase minimum wage increase was initially signed into law in May 2007, the unemployment rate was 4.5%, and when the first phase went into place, the unemployment rate was 4.6%. Today it stands at 9.5%. At a time of record deficits, uncertainty of increased taxes, the looming prospect of government takeover of the healthcare system, and a national energy tax, small businesses simply cannot afford this final wage increase . . . READ MORE

NEW LEDGER COMMENTARY
OBAMA LIES ABOUT ECONOMY
FRANCIS CIANFRACCO: Throwing numbers around as the President does is dangerous because of seasonal adjustments and noise in the data. But however you slice and dice the data, I don’t see the case for implying that the unemployment picture is improving. We’ve lost over 2 million jobs since Obama took power. It’s possible that the rate of job losses has slowed . . . but there’s not a shred of evidence that hiring is picking up across the economy. . . . READ MORE

REPUBLICAN DELAYS US NOMINEES OVER HONDURAS POLICY

2009-07-21T20:08:00.000-04:00

WASHINGTON, July 21 (Reuters) - A Republican senator unhappy with U.S. policy on Honduras delayed on Tuesday a committee vote to confirm the nominee to head the State Department's bureau of western hemisphere affairs.
Conservative Senator Jim DeMint, who has expressed concern over Washington's call for ousted Honduran President Manuel Zelaya to be reinstated, invoked his right to ask the Senate Foreign Relations Committee to postpone voting to confirm Arturo Valenzuela, currently a professor at Georgetown University, to be assistant secretary of state. READ MORE

RIOTS OVER IRANIAN ELECTIONS RESUME

2009-07-21T17:13:00.001-04:00

(JP) Iranian riot police on Tuesday arrested dozens of pro-reform protesters in central Teheran, Reuters cited a witness as saying, after hundreds of demonstrators gathered on the streets of the Iranian capital.
"There are hundreds of riot police and plainclothes officers, beating people who gathered to support (opposition leader Mir Hossein) Mousavi," the witness reportedly said. "There are hundreds of protesters at Haft-e Tir square." READ MORE

300 WORDS OR LESS 07.18.09

2009-07-18T10:27:00.002-04:00

Franken asks the hard questions, Pelosi says "We’ll take your money and your little dog too."

Al Franken is taking on his first major role as a new Senator. He has been selected to take part in the Sotomayor hearings. This is his opportunity to begin to define what kind of Senator he will be, what kind or role he would play. He chose the role he has always played, that of an awkward, goofy, sometimes funny clown. After a brief history of the television viewing habits of the Franken family and the Sotomayor family, Al got into the meat of his questions. This included a tough question on an episode of Perry Mason in which Perry Mason didn't win. This question proved to be more than Sotomayor could handle and she was unable to answer. Does this make her a liar when she claims to be a big Perry Mason fan? Further investigation is needed.

Nancy Pelosi spoke to the press recently. She outlined how government funded health care is actually going to be a huge money maker. It's going to save so much money, it won't even need the money generated by the planned increase in taxes on the evil "rich"! This doesn't mean there won't be a tax increase. Nancy said that the money would be used for decreasing the deficit. You know, the deficit that was run up by other money making propositions like bailing out AIG, GMC etc... Then there was a cackle, a puff of smoke, and Nancy Pelosi flew off on her broom.

A.M. MARKET UPDATE 07.13.09

2009-07-13T04:01:00.001-04:00

MARKET FACES EARNINGS REPORTS
CNN/MONEY: The spring stock market rally has lost momentum right as investors are primed to face another big hurdle: the start of the second-quarter reporting period . . . Currently, S&P earnings are expected to have declined 36% in the second quarter versus a year ago . . . The S&P 500 is on track to post its eighth straight quarter of weaker profits . . . READ MORE

GOLDMAN SACHS: 'BLOWOUT' PROFIT
NEW YORK TIMES: Up and down Wall Street, analysts and traders are buzzing that Goldman, which only recently paid back its government bailout money, will report blowout profits from trading on Tuesday. Analysts predict the bank earned more than $2 billion in the March-June period . . . READ MORE

SLOW RECOVERY PUSHES OIL DOWN
USA TODAY: Slack worldwide demand for energy and concern that the economic recovery will be slower than hoped are pushing oil prices down and threatening the profits and stock prices of energy companies . . . READ MORE

RECOVERY 'UNLIKELY' THIS YEAR
REUTERS: "The market has been too optimistic about a global economic recovery later this year, but that now looks unlikely to happen, so oil prices are languishing," said David Moore, a commodities analyst at the Commonwealth Bank of Australia . . . READ MORE

AIRLINE TROUBLES GET WORSE
WALL STREET JOURNAL: The recession, plunging travel demand and a tough lending environment are battering U.S. airlines, raising the prospect of a liquidity squeeze that could lead to bankruptcy filings by winter if conditions don't improve. The five largest hub-and-spoke carriers are expected to report second-quarter losses . . . READ MORE

LENDER C.I.T. FIGHTS TO SURVIVE
WALL STREET JOURNAL: CIT Group Inc. officials spent the weekend trying to hash out a plan that would help calm markets and convince customers and investors that it can work its way out of a deepening liquidity crunch . . . CIT executives were worried that customers would be rattled by reports over the weekend that it hired a prominent law firm to prepare for a possible bankruptcy filing after so far failing to get additional government assistance . . . READ MORE

SOTOMAYOR HEARINGBEGINS IN SENATE TODAY

2009-07-13T03:01:00.001-04:00

EASY CONFIRMATION EXPECTED
WASHINGTON TIMES: The Supreme Court confirmation prospects of Judge Sonia Sotomayor appeared good Sunday . . . Republicans indicated they don't expect a filibuster . . . The Senate Judiciary Committee starts at 10 a.m. Monday the confirmation hearing of Judge Sotomayor to replace outgoing Supreme Court Justice David H. Souter . . . READ MORE

REPORT: NORTH KOREA'S KIMHAS PANCREATIC CANCER

2009-07-12T23:07:00.000-04:00

AP/MSNBC: North Korean leader Kim Jong Il has life-threatening pancreatic cancer . . . The 67-year-old Kim was diagnosed with the cancer around the time he was felled by a stroke last summer, Seoul's YTN television reported . . . READ MORE

STORMS FORCE SHUTTLE DELAY

2009-07-12T21:55:00.003-04:00

WASHINGTON POST: Thunderstorms have forced NASA to delay Sunday evening's launch of space shuttle Endeavour. The launch team came within minutes of sending Endeavour and seven astronauts to the international space station. But storms moving in from the west . . . and managers called everything off. They will try again Monday . . . READ MORE

U.S., ALLIED CASUALTIESINCREASE IN AFGHAN WAR

2009-07-12T21:49:00.003-04:00

WALL STREET JOURNAL: A series of attacks in Afghanistan has left four U.S. Marines and eight British soldiers dead in recent days, stoking concern among U.S. and allied forces over a surge in battlefield deaths . . . So far this year, 192 foreign soldiers have been killed, including 103 Americans -- a 40% jump from the same period last year . . . READ MORE

WALL STREET P.M. 07.10.09:DOW AVERAGE CLOSES LOWER

2009-07-10T16:01:00.004-04:00

DJIA: -36.65 CLOSE 8,146.52
S&P 500 -3.55 CLOSE 879.13
NASDAQ +3.48 CLOSE 1,756.03

'NO REASON TO INVEST'
ASSOCIATED PRESS: With little positive news ahead of earnings season to drive buying, stocks on Friday headed for their longest losing streak since the market's spring rally began in early March . . . . "Nobody's investing because there's no reason to invest," said Dawn Bennett, CEO of Bennett Financial Group . . . READ MORE

ANALYSIS SHOWS DEFLATION TREND
DAILY FX: The interpretation of multiple markets’ price patterns indicate that the deflationary environment experienced in the summer and fall of 2008 has returned . . . Stock markets, whether in Europe, Asia, or the United States, all appear headed lower throughout the remainder of 2009 . . . READ MORE

STRIPPED-DOWN GM FACES
COMPETITION AND DOUBTS
MARKETWATCH: While in Chapter 11, General Motors shed $40 billion worth of debt, four brands, hundreds of dealerships and thousands of jobs . . . This is a crucial period for the auto maker. It's emerging from bankruptcy into the toughest market conditions seen in decades . . . GM still needs to give consumers with a compelling reason to buy its products . . . READ MORE

POLITICS: DEMOCRATSRECAPTURE N.Y. SENATE

2009-07-09T18:14:00.000-04:00

ESPADA NAMED MAJORITY LEADER
ALBANY (N.Y.) BUSINESS REVIEW: Sen. Pedro Espada Jr. has returned to the fold, giving the Democrats a 32-30 majority in the state Senate -- again -- and taking the title majority leader. Espada (D-Bronx) said during a news conference Thursday that his disagreement with fellow Democrats on June 8 "has never been about titles" . . . READ MORE

WALL STREET P.M. 07.09.09:DOW STAYS UNDER 8,200

2009-07-09T16:01:00.012-04:00

DJIA: +4.76 CLOSE 8,183.17
S&P 500 +3.12 CLOSE 882.68
NASDAQ +5.38 CLOSE 1,752.55

RETAIL, ECONOMIC WORRIES
LEAVE MARKET UNCHANGED
FORBES: Better than expected second-quarter figures from Alcoa and a sharp drop in the government's weekly tally of initial jobless claims drew cheers on Wall Street Thursday, but the gains were held in check by somber June sales figures from several retailers and lingering concern about macroeconomic conditions, leaving the major averages little changed by the end of the day. . . . READ MORE

AIG AT RISK OF MORE LOSSES
BUSINESS WEEK: American International Group Inc. shares continued their free fall Thursday after a Citigroup analyst said there is a high probability that the insurer's equity is zero. . . . In a note to clients Thursday, Citi Investment Research analyst Joshua Shanker said the continued risk of more credit default swap losses and its management's eagerness to sell off businesses at a low value jeopardizes AIG's equity position . . . READ MORE

JUNE RETAIL SALES SLUMP 4.9%
CNN/MONEY: Several of the nation's leading retail chains reported Thursday that their same-store sales declined again in June. . . . Sales tracker Thomson Reuters, which tracks monthly same-store sales for 30 chains such as Target, Gap Inc. and J.C. Penney, said overall June sales for the group fell 4.9%, compared to a gain of 1.9% last June. It marked the 10th-straight monthly decline for that index . . . READ MORE

SALES FALL 'MONTH AFTER MONTH'
WALL STREET JOURNAL: From department stores to discounters, sales remained on a downward trend for retailers last month, more than a year and a half into the recession . . . "Retailers are saying economic pressures are continuing and they are deeply concerned," said Jeff Augustin, a vice president at EDS, a unit of Hewlett-Packard that consults with retailers. "It's been month after month of poor sales for most of them." . . . READ MORE

SEARS TRIES CHRISTMAS IN JULY
CHICAGO TRIBUNE: On Sunday, while most of America was recovering from Fourth of July fireworks and cookouts, Sears launched an online boutique called Christmas Lane at Sears.com and Kmart.com. It also set up Christmas decor shops at 372 Sears stores . . .Sears typically waits until Nov. 1 to unveil its holiday merchandise . . . But with the recession putting a crimp in spending, the retailer is hoping to attract holiday shoppers early . . . READ MORE

'VERY STEEP JOB LOSSES' AHEAD
ASSOCIATED PRESS: The number of newly laid-off workers requesting unemployment insurance fell by 52,000 to a seasonally-adjusted 565,000, the Labor Department said Thursday. But the drop was mostly due to a shift in the timing of auto-related layoffs, leading many economists to discount the decline. . . . Thursday's figure indicates that "very steep job losses" likely will continue and that the unemployment rate will keep rising, said Zach Pandl, an economist at Nomura Securities International . . . READ MORE

BUFFETT: 2ND STIMULUS NEEDED?
CNBC: Legendary investor Warren Buffett said . . . a second stimulus package might be needed as the economy struggles to recover from recession . . . "We're not in a freefall, but we're not in a recovery either," he told ABC's "Good Morning America" . . . READ MORE

THE NEW LEDGER
WHY ANOTHER STIMULUS?
FRANCIS CIANFRACCO: Politically, it’s going to be tough to sell a huge new round of deficit spending, to get benefits that are hard for most people to see. The two key questions are: is the first stimulus doing anything good at all for the economy? And why would a second or third round do any better? . . . READ MORE

FORBES
EVEN WORSE THAN IT LOOKS
NOURIEL RUBINI: The employment report shows that conditions in the labor market continue to be extremely weak, with job losses in June of over 460,000. With the current rate of job losses, it is very clear that the unemployment rate could reach 10% by later this summer -- around August or September -- and will be closer to 10.5%, if not 11%, by year-end. I expect the unemployment rate is going to peak at around 11% at some point in 2010, well above historical standards for even severe recessions. . . . READ MORE

INVESTIGATORS SAY OFFICIALSTONEWALLING ON IG PROBE

2009-07-09T13:00:00.001-04:00

BYRON YORK/WASHINGTON EXAMINER: A top official of the Corporation for National and Community Service, the government agency that oversees AmeriCorps, has refused to answer questions from congressional investigators about the White House's role in events surrounding the abrupt firing of inspector general Gerald Walpin. . . . READ MORE

THE AMERICAN SPECTATOR
DEM STAFFERS QUESTION OFFICIAL
ROBERT STACY McCAIN: Democratic congressional staffers investigating the firing of AmeriCorps inspector general Gerald Walpin asked tough questions of an agency lawyer who refused to discuss White House involvement in the case . . . READ MORE

BLOG REACTION: INSTAPUNDIT, DAN COLLINS, CAMP OF THE SAINTS, LITTLE MISS ATTILA, THE OTHER McCAIN, POWERLINE, RIGHT WING NEWS, MEMEORANDUM

POLL: OBAMA APPROVALRATING FALLS LOWER

2009-07-08T17:42:00.002-04:00

RASMUSSEN: The Rasmussen Reports daily Presidential Tracking Poll for Wednesday shows that 32% of the nation’s voters now Strongly Approve of the way that Barack Obama is performing his role as President. Thirty-seven percent (37%) Strongly Disapprove giving Obama a Presidential Approval Index rating of –5. The number who strongly disapprove inched up another point to the highest level measured to date and the overall Approval Index is at the lowest level yet for Obama . . . READ MORE

WALL STREET P.M. 07.08.09STOCKS POST SMALL GAINS

2009-07-08T17:11:00.004-04:00

DJIA: +14.81 CLOSE 8,178.41
S&P 500 -1.47 CLOSE 879.56
NASDAQ +1.00 CLOSE 1,747.17

MIXED TRADING MARKS DAY
WALL STREET JOURNAL: U.S. stocks ended mixed Wednesday . . . The Dow Jones Industrial Average rose 14.81 points, or 0.2%, to 8178.41. . . . "Our traders are saying the market is sold off enough to attract some bids," said David Klaskin, chief investment officer at Oak Ridge Investments. "Where we go from here depends on how the second-quarter earnings releases and outlooks go" . . . READ MORE

ALCOA REPORTS MORE LOSSES
CNN/MONEY: Aluminum producer Alcoa Inc. reported its third quarterly loss in a row Wednesday . . . In the three months ended June 30, Alcoa lost $454 million, or 47 cents per share, compared with a profit of $546 million, or 66 cents per share, in the same period a year ago . . . READ MORE

ADMINISTRATION ABANDONS
ENERGY JOB-CREATION GOAL
ABC NEWS: When Vice President Joe Biden announced a new $3.3 billion grant program to upgrade the nation's electricity network, the rationale was simple: "This is jobs -- jobs," he said in April. But the Obama administration is now saying it will not take the potential for job creation into account in "rating" proposed projects for possible funding -- after initially saying that would be a primary consideration . . . READ MORE

WALL STREET P.M. 07.07.09DOW FALLS BELOW 8,200

2009-07-07T16:01:00.007-04:00

DJIA: -161.27 CLOSE 8,163.60
S&P 500 -17.69 CLOSE 881.03
NASDAQ -41.23 CLOSE 1,746.17

'REALITY CHECK' FOR MARKETS
NEW YORK TIMES: Concerns about whether American companies can generate healthy profits in a deep recession hammered Wall Street on Tuesday . . . "It's an overall reality check," said Doreen Mogavero, president of the floor-brokerage firm Mogavero, Lee & Company. "People are starting to worry there may have been a disconnect between the market and reality. I kept thinking we were way due for a correction a month ago or more, and it wasn't coming." . . . READ MORE

FOUR-MONTH RALLY OVER?
BLOOMBERG: U.S. stocks fell Tuesday as energy shares slid on lower oil prices and concern grew that earnings will fail to justify the four-month stock market surge . . . "There’s a sense we've moved up too quickly," said Richard Sichel, who oversees $1.3 billion as chief investment officer at Philadelphia Trust Co. in Philadelphia . . . READ MORE

STIMULUS TALK CHILLS MARKET
REUTERS: U.S. stocks fell on Tuesday as talk of a second government stimulus plan stirred fears . . . "I think it's insane, the first stimulus package has not even been spent yet," said Andre Weisbrod, president & chief executive of Staar Financial Advisors in Pittsburgh. "They are creating what I would call the government bubble" . . . READ MORE

MAJOR LENDERS REJECTCALIFORNIA 'I.O.U.' NOTES

2009-07-07T14:37:00.000-04:00

STATE DEBT CRISIS LOOMS
WALL STREET JOURNAL: A group of the biggest U.S. banks said they would stop accepting California's IOUs on Friday, adding pressure on the state to close its $26.3 billion annual budget gap. . . . After state leaders failed to agree on budget solutions last week, California began issuing IOUs -- or "individual registered warrants" -- to hundreds of thousands of creditors. State Controller John Chiang said that without IOUs, California would run out of cash by July's end. . . . READ MORE

BIDEN SAYS WHITE HOUSE"MISREAD" THE ECONOMY

2009-07-06T00:04:00.000-04:00

ABC NEWS: Vice President Biden said Sunday that the administration was too optimistic in predicting the severity of the economic downturn. Biden admitted, "The truth is, there was a misreading of just how bad an economy we inherited...", but claimed that the Stimulus Plan, passed approximately four months ago was right on schedule. He also maintained that the plan was generally waste-free and "well managed" and that there was no consideration at this point for a second Stimulus Plan. . . .READ MORE

INTERVIEW TRANSCRIPT FROM ABC'S "THIS WEEK"

WHITE HOUSE MAY BYPASS SENATEON NUCLEAR AGREEMENT

2009-07-06T00:02:00.000-04:00

ABC NEWS: According to a senior White House Official, the President may decide to bypass the Senate if a new nuclear arms treaty with Russia is not ready for ratification by December 5. The U.S. and Russia have been negotiating terms for a treaty to replace the START Treaty, ratified 18 years ago. Reportedly, an important obstacle is a Russian objection to a US missile defense system in Poland and the Czech Republic. President Obama says his goal is to create a treaty that "reduces tensions and the expense of maintaining such high nuclear stockpiles when they're not necessary for our defense and our deterrence". . . .READ MORE

300 WORDS OR LESS:SHE IS STILL "SARAH BARRACUDA"

2009-07-06T00:01:00.000-04:00

Approximately, ten metric tons of ink will be spilled and countless electrons sent whizzing through Al Gore's Internet over Sarah Palin's resignation Friday evening. Most of it will be sheer piffle -- pundits gazing steadfastly into their Magic 8-Balls trying to divine the Palinator's motives (and ignoring her speech wherein they could be found) and hacks looking to pad their bank accounts with a few more television appearances or newspaper columns excoriating her for some perceived sin, and all the rest.

You can safely ignore most of what you see, thankfully. All that can be known is already out there.

Palin resigned for exactly the reasons she gave in her resignation speech. Unless you believe her an inveterate liar (and there's no evidence whatsoever to believe so), she pulled the plug because the incessant, baseless, and unhinged attacks from the left were costing her too much time and money and were taking too great a toll on her family. She couldn't actually spend the time as Governor she felt the state deserved thanks to said attacks, so she passed the job to someone she knows could.

As for where he political ambitions will take her next, well, that's the million dollar question, isn't it? The truth is, only Sarah Palin knows that for sure and she's not telling anyone. Here's the one thing you can say: when she decided to get back into the political game, it'll be in a way and from a direction that defies the conventional wisdom. That's how she got where she is today and there's no reason to think she'll start playing by the rules of the establishment she ran for office to oppose.

TENSIONS MOUNT AS HONDURAS DEFIES OAS

2009-07-04T08:17:00.000-04:00

(Tegucigalpa, Honduras) Zelaya insists on returning to Honduras to serve the last six months of his term; Micheletti says Zelaya will be arrested if he does. With rare unanimity, the international community supports Zelaya and is threatening Honduras with sanctions.
The secretary-general of the Organization of American States, Jose Miguel Insulza, flew here Friday to press for Zelaya's return, but was quickly rebuffed. The OAS had given Honduras a 72-hour deadline, expiring today, to reinstate Zelaya.
READ MORE

NICARAGUA: ACCUSATIONS OF RIGGING ELECTIONS AND SILENCING MEDIA

2009-07-03T21:27:00.001-04:00

Managua, Nicaragua - Nicaraguan President Daniel Ortega and the Sandinista-controlled Supreme Electoral Council (CSE) stand accused of rigging last year's municipal elections to steal more than 40 mayor's seats – including the capital city of Managua. The widespread allegations and documentation of fraud have led to $130 million in foreign-aid cuts from the United States and the European nations, creating liquidity problems for the government that now jeopardize Nicaragua's program with the International Monetary Fund (IMF).

BREAKING: PALIN RESIGNS GOVERNORSHIP

2009-07-03T16:26:00.007-04:00

PALIN WILL RESIGN AT THE END OF JULY
SUCCEEDED BY LT. GOVERNOR

WASHINGTON TIMES: Sarah Palin, the popular Governor of Alaska and one-time Vice Presidential candidate, has announced that she will resign her office at the end of the month. Lt. Governor Sean Parnell will be sworn in to replace her. . .READ MORE

REUTERS: Palin said the decision came after much "prayer and consideration" and cited the "political blood sport" and incessant political attacks on her and her family as reasons for the decision. She made the announcement from her home and took no question from the assembled media. .READ MORE

ELSEWHERE: Top of the Ticket, KTUU-TV, CNN

BLOG REACTIONS: Ace of Spades HQ, The Anchoress, Michelle Malkin, The Sundries Shack, Gateway Pundit, Stephen Green, Stix Blog

STATEMENT FROM PALIN'S PRESS OFFICE

TWITTER TRENDING TOPIC

VIDEO VIA CNN/YOUTUBE:

GRIM U.S. OUTLOOK SENDSASIAN MARKETS LOWER

2009-07-03T08:00:00.006-04:00

ASSOCIATED PRESS: Most Asian markets fell Friday as a weaker-than-expected U.S. jobs report signaled more pain ahead for the world's largest economy. . . . Optimism about the U.S. economy, a critical market for Asian-made goods, buckled after the government said employers slashed 467,000 jobs in June. That was far worse than the 363,000 that economists predicted . . . READ MORE

'TERRIBLE AND GETTING WORSE'
WASHINGTON POST: Mounting job losses rattled hopes yesterday that the economy is on track to grow later this year, showing that prospects for American workers are terrible -- and still getting worse. . . . READ MORE

'VERY SEVERE RECESSION'
NEW YORK TIMES: "The numbers are indicative of a continued, very severe recession," said Stuart G. Hoffman, chief economist at PNC Financial Services in Pittsburgh. "There's nothing in here to show that the economy and the market are pulling out of the grip of recession." . . . READ MORE

JOBLESS NUMBERS CONTRADICT
ADMINISTRATION'S FORECAST
WALL STREET JOURNAL: In January . . . Council of Economic Advisers Chairman-designee Christina Romer and Obama economic adviser Jared Bernstein predicted in a report that with an $800 billion stimulus, the unemployment rate would be just about 7% by this time. Without the stimulus, the rate would be at 9%. Instead, the jobless rate is now at 9.5%, despite the $787 billion stimulus passed earlier this year. . . . READ MORE

STOCK MARKET BRACESFOR GRIM JOBS REPORT

2009-07-02T06:20:00.004-04:00

INVESTORS MOVE TOWARD CASH
BLOOMBERG: The yen and the dollar strengthened as stocks around the world declined before a report likely to show the U.S. unemployment rate rose to a 26-year high, spurring demand for the currencies as a refuge . . . U.S. employers cut 365,000 jobs last month after reducing them by 345,000 in May, according to a Bloomberg News survey . . . READ MORE

LABOR DEPT. REPORT TODAY
ASSOCIATED PRESS: The Labor Department is scheduled to release a report Thursday expected to show the nation's unemployment rate edging closer to double digits. Wall Street economists predict the June jobless rate to be 9.6 percent . . . as recession-weary companies continue to cut workers . . . Companies are expected to keep shedding jobs through the rest of this year . . . READ MORE

10 YEARS OF GAINS WIPED OUT?
FORBES: If, as expected, 363,000 jobs were eliminated last month, it will mean 131.8 million people are working in the U.S. -- the same as May of 2000. If another million jobs disappear by the end of the year -- likely, without unexpected improvement -- an entire decade of employment gains will have been wiped out . . . Economists' worst assumptions about employment are being surpassed monthly . . . READ MORE

EURO UNEMPLOYMENT HITS 9.5%
WALL STREET JOURNAL: The unemployment rate in the 16 countries that use the euro rose more than expected and to the highest level for a decade in May . . . The euro-zone jobless rate rose to 9.5% . . . READ MORE

CHINESE OFFICIAL SLAMS
WAXMAN-MARKEY TARIFF
ASSOCIATED PRESS: China said Thursday it opposed the Waxman-Market legislation to cut greenhouse gas emissions, saying tariffs should not be imposed on countries that do not cut emissions. "We are firmly against such attempts . . . It is not conducive to world economic recovery and it serves nobody's interest," Vice Foreign Minister He Yafei said in Beijing . . . READ MORE

THE BUSINESS INSIDER
HOW OBAMA BLEW IT
Six months into the Obama presidency and the New York Times is already running an autopsy analyzing how he could have been so wrong about the economy . . . We suspect Obama, Summers, Geithner & Co. just decided that they had to issue rose-colored projections about the unemployment rate and recovery or they would never have a hope in hell of ramming such huge spending increases through. And if the forecasts proved optimistic? Well, by then, maybe everyone would have forgotten. They haven't . . . READ MORE

RUSSIA SAYS NUCLEAR TALKS WITH US GOING WELL: REPORT

2009-07-02T00:22:00.001-04:00

Talks on a new US-Russian nuclear disarmament treaty are going better than initially expected, a top Russian diplomat told the RIA-Novosti news agency on Wednesday.
"The degree of progress is beyond the expectations that existed when we started," Deputy Foreign Minister Sergei Ryabkov was quoted as saying.
READ MORE

GOVERNMENT MOVES TO STAUNCH MASSIVE MEDICARE FRAUD

2009-07-01T22:45:00.001-04:00

MIAMI (Reuters) - Since 2006, U.S. taxpayers have paid nearly $155,000 to send home health nurses to inject twice-daily insulin shots for an elderly, diabetic Miami man.
But in fact, the man was not diabetic or homebound and the nurses never existed, according to a federal indictment. Now the owners of two Miami companies that purportedly cared for the man are charged with running a $22 million fraud scheme at the expense of Medicare, the federal health program for the elderly and disabled.
READ MORE

SALAMANDER DISCOVERY COULD LEAD TO HUMAN LIMB REGENERATION

2009-07-01T21:20:00.001-04:00

(WIRED) By tracking individual cells in genetically modified salamanders, researchers have found an unexpected explanation for their seemingly magical ability to regrow lost limbs.
Rather than having their cellular clocks fully reset and reverting to an embryonic state, cells in the salamanders’ stumps became slightly less mature versions of the cells they’d been before. The findings could inspire research into human tissue regeneration.
READ MORE

FRANKEN GIVES DEMS FILIBUSTER-PROOF MAJORITY IN SENATE

2009-06-30T20:21:00.000-04:00

St. Paul, Minn. (AP) - Republican Norm Coleman conceded to Democrat Al Franken in Minnesota's contested Senate race Tuesday, hours after a unanimous state Supreme Court ruled the former "Saturday Night Live" comedian should be certified the winner.
READ MORE

300 WORDS OR LESS: 06.30.09

2009-06-30T07:01:00.000-04:00

Sotomayor Passes Ricci Test?

Today, SCOTUS handed down their decision overturning Judge Sotomayor's decision in the case of several white firefighters and one Hispanic firefighter being denied promotions because they passed a test that black firefighters didn’t (Ricci v DeStefano).

If Obama gets his way, and he likely will, Judge Sotomayor could be ruling on cases like this. She would certainly have voted to uphold her own decision. However, so did Justice Souter, the guy she will be replacing. Realistically, Republicans probably can't stop the confirmation of Sotomayor. I'm not sure they want to. Obama is going to appoint someone. Sotomayor is a left wing loon who will likely try to legislate from the bench but this will likely be true of anyone Obama selects. Sotomayor seems to be weak in the exact areas Obama wanted someone strong. I don't think she will influence anyone or sway anyone to her side. She is not a charismatic orator and she doesn't have a powerful personality. She will vote her left wing agenda but she won't be influencing any of the 5 Justices who voted to overturn her racist decision

The Republicans should use this as an opportunity to point out the hypocrisy of the left and to distinguish themselves as conservatives.(Does anyone think the left would be ok with a member of the KKK being a Justice? Oh wait, they already have a KKK Senator.) They should be talking about the nomination of someone affiliated with La Raza. They should be elaborating on La Raza's agenda to undermine American culture. This could be an opportunity to discuss what stances a wise Latina woman would take on closing the border with Mexico. The Republicans probably can't stop her confirmation, but they can point out what Obama and Sotomayor have planned for America.

--ROC

OBAMA'S CURIOUSLY CLOSE LABOR FRIENDSHIP

2009-06-28T19:23:00.000-04:00

(LAT) The SEIU spent $60 million to help elect Obama, according to the union. Stern said the group deployed 100,000 volunteers during the campaign, including 3,000 who worked on the election full time.
Now in the White House, Obama has continued to derive political benefits from the union. It was the SEIU's health chief, Dennis Rivera, who helped bring industry to the table to start talks on a healthcare overhaul.
READ MORE

NTCNews SPECIAL REPORT:OBAMA vs. the WATCHDOGS

2009-06-28T00:01:00.017-04:00

GRASSLEY PUSHING PROBE OF
INSPECTORS GENERAL FIRINGS
ED O'KEEFE/WASHINGTON POST: Sen. Charles E. Grassley (R-Iowa) this week suggested that the Obama administration is attempting to interfere with investigations conducted by government watchdogs . . . "I kind of get the impression that there’s kind of a crusade early on in this administration to . . . short circuit inspectors general," Grassley said . . . READ MORE

AMTRAK 'SYSTEMATICALLY'
VIOLATED LAW, SENATOR SAYS
ROBERT STACY McCAIN/AM. SPECTATOR: Officials of Amtrak have "systematically violated the letter and spirit of the Inspector General Act," Sen. Charles Grassley (R-Iowa) charged Thursday, making public a 94-page legal report prepared at the request of Amtrak inspector general Fred Wiederhold, who resigned suddenly a week ago . . . READ MORE

GRASSLEY'S LETTER TO AMTRAK:
"It was also reported to my staff that some OIG staff members may be fearful of retaliation if they were to discuss the matters set forth in this letter with anyone, including Congress. As you may be aware, 18 U.S.C. § 1505 prohibits obstruction of Congressional inquiries. Denying or interfering with employees' rights to furnish information to Congress in any way will be considered an obstruction of our inquiry. . . . READ MORE
94-PAGE REPORT (PDF)
MICHELLE MALKIN: Biden Connection
DAN RIEHL: Amtrak VP Is Lobbyist

BLOG REACTION: MOE LANE, TROGLOPUNDIT, NO SHEEPLES HERE, HOT AIR HEADLINES, OBI'S SISTER, INSTAPUNDIT, RHETORICAN, FIRE ANDREA MITCHELL, CAMP OF THE SAINTS, GREEN ROOM, RED STATE, SUNDRIES SHACK, MEMEORANDUM

U.S. NEWS & WORLD REPORT
Praise for AmeriCorps IG
PAUL BEDARD: Gerald Walpin, the former AmeriCorps inspector general who was fired after appearing confused at a meeting, has some pretty important friends coming to his defense. "We have never seen Mr. Walpin to be 'confused, disoriented, [or] unable to answer questions,' " wrote the 145, who include former federal judges and even Democrats like Bernie Nussbaum, former President Clinton's first White House counsel. . . . READ MORE

WASHINGTON EXAMINER
AmeriCorps Feared Bad Press
If IG Investigation Continued
BYRON YORK: On the evening of Wednesday, June 10, an official of the White House counsel's office called Walpin to tell him he had one hour to resign or be fired. . . . Why the rush? Walpin had certainly displeased the board by his aggressive investigation into the misuse of AmeriCorps funds by Kevin Johnson, the former NBA star who is now mayor of Sacramento, California and a prominent supporter of President Obama. . . . READ MORE

MICHELLE MALKIN: In a special May report, Walpin's office blew the whistle on a highly politicized U.S. attorney's office settlement with Johnson and his deputy, Dana Gonzalez. The pair exploited nearly $900,000 in AmeriCorps funding for personal and political gain. Based on Walpin's investigation last year, CNCS suspended their access to federal funds . . . READ MORE

YOUTH TODAY
SEX CHARGE STARTED PROBE
NANCY LEWIS: Ironically, the investigation of Sacramento Mayor Johnson, St. Hope Academy and its Hood Corps was requested by CNCS after the California commission that recommended St. Hope for funding received reports of irregularities at the program, including allegations of sexual misconduct. It was disclosed that a female student at St. Hope had told a teacher that Johnson had inappropriately touched her . . . READ MORE

ABC NEWS:
Third IG Probe at ITC
JAKE TAPPER: Judith Gwynn, the Inspector General for the International Trade Commission, was told that her contract would not be renewed. The news was delivered to Gwynn within three hours of Sen. Chuck Grassley, R-Iowa, sending the chair of the ITC a letter asking about a March 5 incident . . . READ MORE

GRASSLEY LETTER TO I.T.C.:
As Ranking Member of the Senate Finance Committee I am responsible for conducting oversight of the International Trade Commission (ITC), and therefore, am particularly interested in the ITC Inspector General's semi-annual reports. The following statement from the April 2009 Semiannual Report to Congress raises a number of serious concerns and questions: "On March 5, 2009, in the course of conducting an investigation regarding contractor activities, certain procurement files were removed forcibly from the possession of the Inspector General by a Commission employee." . . . READ MORE

THE WASHINGTON POST
Treasury Department Questions
Authority of Bailout Special IG
AMIT R. PALEY & ED O'KEEFE: The special inspector general charged with overseeing the $700 billion bailout of the financial sector says he has been told by the Treasury Department that the agency has legal authority over his office, a claim that could threaten its independence. Neil M. Barofsky, who is overseeing the bailout, wrote in an April 7 memo that the department would ask the Justice Department Office of Legal Counsel to sort out the issue. . . . READ MORE

CNN/MONEY
Bailout Watchdog: Who's the Boss?
JENNIFER LIBERTO: The watchdog charged with investigating fraud in the government bailout programs is feuding with the Treasury Department about who he answers to. Neil Barofsky, the special inspector general overseeing the $700 billion Troubled Asset Relief Program has launched at least 20 criminal investigations and six audits . . . READ MORE

ABC NEWS
BAROFSKY PROBED AIG BONUSES
MATT JAFFE: The Treasury Department’s ongoing dispute with bailout watchdog Neil Barofsky stems from the Obama administration’s refusal in April to hand over documents relating to AIG’s executive compensation structure . . . The insurance giant, the recipient of a record $180 billion in taxpayer aid, ignited an uproar in March when the company paid out $165 million to employees as part of a retention program . . . READ MORE

HENSARLING LETTER (PDF)
"Any threat or appearance of a threat to SIGTARP’s independence will undermine and corrupt its important mission. SIGTARP must be given free and open access to all TARP related documents and other materials held by or accessible to the Administration" . . . READ MORE

CHICAGO TRIBUNE
Grassley: Treasury Claim 'Specious'
TOM HAMBURGER & PETER WALLSTEN: Neil Barofsky is embroiled in a dispute with the Obama administration that delayed one recent inquiry and sparked questions about his ability to freely investigate. . . . Sen. Charles Grassley, R- Iowa, sent the letter to Treasury Secretary Timothy Geithner demanding information about a "dispute over certain Treasury documents" that he said were being "withheld" from Barofsky's office on a "specious claim of attorney-client privilege." . . . READ MORE

SENATOR GRASSLEY: "The grassroots is furious about the way TARP dollars have been used and what looks like a lack of accountability for this massive infusion of tax dollars. It's added injury to hear about the Treasury Department putting up hurdles to slow down the work of the watchdog who's supposed to track the money." . . . READ MORE

GRASSLEY LETTER TO GEITHNER (PDF)
"[M]y office received information that there was a dispute over certain Treasury documents that were being withheld from SIGTARP auditors on a specious claim of attorney-client privilege. . . . The ability of Inspectors General to secure agency records subject to audit or investigation is essential to ensure the integrity and reliability of their work on behalf of Congress and the American People . . . READ MORE

THE NEW LEDGER
Speaking Truth To Power?
PEJMAN YOUSEFZADEH: A favorite charge against George W. Bush was that when he was President, he would not suffer challenges and disputes from governmental watchdogs. . . . The election of Barack Obama was supposed to change all of this. At long last, we were supposed to have a President who welcomed challenges and disputatious opinions. . . . READ MORE

THE NEW AMERICAN
Walpin: Tip of the Iceberg
STEVEN J. DuBORD: What is truly disturbing is that the Walpin firing appears to be just the tip of the iceberg. Inspectors general are under fire by government agencies throughout the Obama administration. . . . READ MORE

THE AMERICAN SPECTATOR
IG Probe 'Not About Walpin'
ROBERT STACY McCAIN: Gerald Walpin has quickly become the most famous of the three inspector generals who've left their jobs in recent weeks, exposing what appears to be a pattern of pressure from the Obama administration. . . . Yet the investigations into President Obama's evident crackdown on IGs -- designated watchdogs who guard against waste, fraud and abuse in federal agencies -- are not about Walpin. . . . READ MORE

NTCNEWS
Watchdogs, Not Lapdogs
JIMMIE BISE JR. : Inspectors General are the watchdogs who guard our interests in government. They make sure the dollars our government spends are spent in accordance with the law. Without them, fraud and abuse would run rampant. . . . That is why they must be independent agents, not beholden to the agency they inspect . . . READ MORE

THE AMERICAN THINKER
'Picked Off One by One'
RICK MORAN: It appears that those IGs who won't play ball are getting picked off one by one. There might be another explanation but 3 in 3 weeks? The incidents call into question the independence of the entire inspector general system put in place by Congress to watch where our tax dollars are spent . . . READ MORE

WASHINGTON EXAMINER
'Those Who Stand in His Way'
MICHAEL BARONE: Chicago-style, [President Obama] has kept the Republicans out of serious policy negotiations . . . Basking in the adulation of nearly the entire press corps, he whines about his coverage on Fox News. Those who stand in the way, like the Chrysler secured creditors, are told that their reputations will be destroyed; those who expose wrongdoing by political allies, like the AmeriCorps inspector general, are fired. . . . READ MORE

AMERICAN ISSUES PROJECT
'This Small Scandal'
JIMMIE BISE JR: It could very well be that this small scandal becomes the lead domino that begins a chain reaction that could spell unmitigated disaster for the administration . . . READ MORE

CONGRESS SUSPENDS HEALTH CARE DEBATE

2009-06-25T23:02:00.000-04:00

WASHINGTON — Senators who are negotiating how to overhaul the nation's health care system broke off formal talks Thursday until after the July Fourth holiday, saying that they lack consensus on how to pay for the $1 trillion or more that the changes could cost over the next decade.
READ MORE

Farrah Fawcett Dead, Michael Jackson, Too?

2009-06-25T18:48:00.002-04:00

ACTRESS FARRAH FAWCETT DEAD AT 62
Farrah Fawcett, the multiple Golden Globe and Emmy-nominated American actress best known for her role as the vivacious Jill Munroe in the 1970s television series “Charlie’s Angels,” died in a Santa Monica hospital. She was 62.
READ MORE

LEGENDARY 'KING OF POP' MICHAEL JACKSON, 50, HAS DIED
Steve Ruda told the Los Angeles Times that paramedics responded to a 911 call at 12:26 p.m. Jackson, 50, was not breathing when they arrived.
The parademics performed CPR on the way to the hospital, the paper said. A member of the Jackson family said his brothers and mother were on their way to see him. "[He's in] really bad shape," a family member told TMZ.
READ MORE

300 WORDS OR LESS: 6.23.09

2009-06-24T00:01:00.000-04:00

WATCHDOGS, NOT LAPDOGS

The job of an Inspector General is not a pleasant job. Imagine being the person who always carries the bad news, who always shows up to point out mistakes, and who gets people in trouble. Imagine being in an almost-constant adversarial relationship with the people you work around. It takes a rare and thick-skinned person to do that job. But it is a necessary job. Inspectors General are the watchdogs who guard our interests in government. They make sure the dollars our government spends are spent in accordance with the law. Without them, fraud and abuse would run rampant. Well, more rampant than it already does.

That is why they must be independent agents, not beholden to the agency they inspect. The day they become lapdogs and not watchdogs is the day that we lose any semblance of accountability for the trillions dollars our government spends on our behalf.

So the current scandal, wherein three Inspectors General have retired or resigned under what appears to be political pressure from the Obama administration should concern us. Right now, members of Congress are looking into the various allegations, but that won't be enough. We will need tenacious "mad-dog journalists" to dig into the story as well and ask the right questions. Once we get answers to those questions, it will be our responsibility as citizens and taxpayers to make sure that Inspectors General keep their independence.

Our government relies on the checks and balances that keep one branch from becoming more powerful than any other. The Inspectors General are a vital balance against overreach from the Executive Branch. We need to make sure that balance is maintained.

-JBJr

DEMS, GOP STAGE DUELING NY SENATE SESSIONS

2009-06-23T21:03:00.002-04:00

ALBANY, N.Y. (AP) — Evenly split political factions turned the New York Senate Tuesday into a two-ring legislative circus of sharp words, laughter and jeers, including a derisive "Duh," where Republicans and Democrats dueling for control held simultaneous sessions in the ornate chamber.

Democratic Gov. David Paterson ordered Tuesday's session to break a two-week stalemate and get the Senate moving on issues with June 30 deadlines, including bond financing, municipal taxes and mayoral control of New York City schools.
READ MORE

WALL STREET P.M. 06.23.09:STOCKS REMAIN SLUGGISH

2009-06-23T19:05:00.001-04:00

DJIA: -16.10 CLOSE 8322.91
S&P 500 +2.03 CLOSE 895.10
NASDAQ -1.27 CLOSE 1764.92

DOLLAR DROPS; S&P 500 GAINS;
DEMAND FOR TREASURIES UP
BLOOMBERG NEWS: The dollar fell by the most in six weeks against the euro, sending oil, gasoline, gold and sugar higher . . . Treasuries gained for a third day as the government’s sale of $40 billion of two-year notes drew higher-than-forecast demand . . . The Standard & Poor’s 500 Index added 0.2 percent to 895.10 . . . rebounding from its steepest loss in two months . . . Today’s U.S. stock trading fell to 8.12 billion shares, among the lowest volume days of this year . . . READ MORE

RECOVERY 'NOT YET EVEN NEAR'?
REUTERS: Bleak data from the United States and Europe suggested that leading economies may not yet even be near a recovery from a global recession. In the United States, sales of previously-owned homes rose at a lower-than-expected 2.4 percent pace in May, according to the National Association of Realtors . . . READ MORE

WALL STREET P.M. 06.22.09:DOW FALLS OVER 200

2009-06-22T19:57:00.003-04:00

DJIA: -200.72 CLOSE 8339.01
S&P 500 -28.19 CLOSE 893.04
NASDAQ -61.28 CLOSE 1766.19

STOCKS NOSEDIVE ON GRIM
WORLD ECONOMIC NEWS

CNN MONEY: U.S. markets plummeted across the board as the World Bank released a report saying world economic growth will shrink almost 3 percent. The report was yet another piece of bad economic news at a time when some investors believed an end to the ongoing recession was nigh. . . . READ MORE HERE

WASHINGTON TIMES: Stock prices followed commodity prices downwards as investors reacted poorly to the pessimistic report. . . .READ MORE HERE

UPDATED: NOW 9 DEADIN WASHINGTON, D.C.METRO TRAIN WRECK

2009-06-22T18:59:00.012-04:00

UPDATE (11:45 PM EDT):
DEATH TOLL UP TO NINE
Victims include a female train operator.
Second train struck first from behind,
"jackknifed" on top of the leading train.

RESCUE ATTEMPTS ONGOING
NUMBER OF INJURED BETWEEN 70-100

NBC-WASHINGTON: At least four people were killed and dozens injured this evening as two commuter trains collided during the evening rush hour. The collision, said to be the deadliest accident in Metrorail history, occurred on the system's Red Line, in northeast Washington, D.C. between the Fort Totten and Takoma Park stations. . . .[READ MORE]

WTOP: Mayor Adrian Fenty described the accident as "the worst Metro accident in D.C. history." D.C. Fire Chief Dennis Rubin confirmed at least 70 injuries, with 50 in the "walking wounded" category. . . .[READ MORE]

WMATA: This is only the second time in the history of Metrorail that there have been "customer fatalities" and only the third collision between trains. . . .[READ MORE]

MORE COVERAGE: WUSA-TV; WJLA-TV; REUTERS

Update: HotMES is OK, per her FaceBook page.

A.M. MARKET UPDATE 06.22.09:INFLATION FEARS HIT BONDS

2009-06-22T03:41:00.001-04:00

THREATENS HOUSING RECOVERY
AP/BOULDER DAILY CAMERA: The Federal Reserve announced a $1.2 trillion plan three months ago designed to push down mortgage rates and breathe life into the housing market . . . But this and other big government spending programs are turning out to have the opposite effect. Rates for mortgages and U.S. Treasury debt are now marching higher as nervous bond investors fret about a resurgence of inflation . . . threatening to make an awful housing market potentially worse . . . READ MORE

RALLY ENDS IN 'JUNE GLOOM';
MARKET EYES FED, EARNINGS
FORBES: Bulls in the broader market suffered from more than just a loss of momentum last week as the first bout of June Gloom finally and officially made its way into the historical ledger . . . Wednesday's Fed Decision will be a closely-watched report . . . Treasury auctions Tuesday through Thursday . . . Fed Chief Bernanke faces questions Thursday from Congress over role in BofA's ( BAC) acquisition of Merrill . . . Earnings reports due Tuesday from Oracle; Wednesday from Monsanto, Bed Bath & Beyond, and Nike; Thursday and Friday, homebuilders Lennar and KB Homes Thursday. . . READ MORE

STOCKS 'HIT THE WALL' LAST WEEK
CNN/MONEY: After three months of rallying, the stock market seems to have hit the wall. Bets that the recession is waning have turned to concerns that growth remains elusive . . . Government reports are due on housing, consumer spending, the labor market and durable goods orders . . . READ MORE

300 WORDS OR LESS: 6.22.09

2009-06-22T00:01:00.005-04:00

The U.S. and Iran
Two sovereign countries, with intriguing connections. After WWII, Kennan published the X Article, which birthed the Containment Doctrine. Argue which elements of DIME were the chief drivers of the 1953 coup that installed the Shah in Iran (Operation Ajax) all you like. Robert Naiman says Mosaddeq was a contemporary Saddam Hussein. Wikipedia maintains that Mosaddeq was "democratically elected."
Scroll forward to the 1979 Iranian Revolution.
Ralph R. Reiland said: "The coup, in essence, paved the way for the rise to power of the Ayatollah Ruhollah Khomeini and all the rest that's happened right up to 9/11 and beyond."
BHO in Cairo: "For many years, Iran has defined itself in part by its opposition to my country, and there is indeed a tumultuous history between us. In the middle of the Cold War, the United States played a role in the overthrow of a democratically elected Iranian government."
Scroll back, and read this:

Where once upon a time an American President might have sent Marines to assure the protection of American strategic interests, there is no room for force in this world of progress and self-determination. Force, the President told us at Notre Dame, does not work; that is the lesson he extracted from Vietnam. It offers only "superficial" solutions. Concerning Iran, he said:
"Certainly we have no desire or ability to intrude massive forces into Iran or any other country to determine the outcome of domestic political issues. This is something that we have no intention of ever doing in another country. We've tried this once in Vietnam. It didn't work, as you well know."

This is the formidable Jeane J. Kirkpatrick quoting Jimmy Carter. Between Carter and BHO sits the Iraq intervention. History and U.S. elections seem to have favored Bush over Carter.

--CLS

IRAN: BLOODSHED SHOCKSWORLD AS CHAOS GROWSUPDATE: MOUSAVI LETTERTO OBAMA: 'DEEP INSULT'

2009-06-21T01:45:00.001-04:00

THOUSANDS DEFY PROTEST BAN
FOX NEWS: Thousands of protesters defied Iran's highest authority Saturday and marched on waiting security forces that fought back with baton charges, tear gas and water cannons . . . READ MORE

L.A.TIMES/AUSTIN STATESMAN: A huge swath of downtown Tehran erupted in fiery chaos Saturday . . . riot police shot into the air after they roughed up a young woman and attracted the ire of protesters. A middle-age man could be seen staggering along the sidewalk near Tehran University with blood dripping from his face. . . . READ MORE

VIDEO: CLASH ON TEHRAN STREETS

OBAMA SEEKS 'MOOD OF THE HOUR'
WASHINGTON POST: U.S. officials say Obama is intent on calibrating his comments to the mood of the hour. They say he is seeking to avoid having the demonstrators accused of being American stooges . . . trying to preserve the possibility of negotiating directly with the Iranian government . . . READ MORE

MOUSAVI: 'DEAR MR. PRESIDENT . . .'
LETTER TO OBAMA: In the name of the Iranian people, we want you to know that when you recently made the statement "Achmadinejad or Mousavi? Two of a kind," we consider this as a grave and deep insult . . . READ MORE

PERSPECTIVES

ROGER COHEN, NY TIMES: Ayatollah Ali Khamenei, the supreme leader, had used his Friday sermon to declare high noon in Tehran, warning of “bloodshed and chaos” if protests over a disputed election persisted. He got both on Saturday — and saw the hitherto sacrosanct authority of his office challenged as never before since the 1979 revolution birthed the Islamic Republic . . . READ MORE
REUEL MARC GERECHT, WEEKLY STANDARD: Since the end of the Iran-Iraq war (1980-88), which almost destroyed the Islamic Republic and forged the reputation and character of then-Prime Minister Mousavi, most Iranians have been exhausted revolutionaries. More like sheep than foot-soldiers of a dynamic faith, Iranians have largely veered away from confronting their increasingly unpopular rulers . . . READ MORE
JENNIFER RUBIN, COMMENTARY: To say then that there is no difference between Mousavi and Ahmadinejad now that a revolution is underway reflects a stubborn refusal to see what is unfolding . . . a battle for the future of Iran . . . READ MORE

300 WORDS OR LESS: 06.21.09

2009-06-21T00:01:00.003-04:00

Transparently Troubling
PoliGazette mentioned Saturday how "these 'Chicago Style Politics' stories stack up over the months, without any real answers," in such a way as to make one wonder if maybe certain right-wing "Kool-Aid" drinkers might be onto something.
Who's been swilling Kool-Aid, and who's been sober all along? Michelle Malkin observes that The Other Michelle -- the one who currently resides at 1600 Pennsylvania Avenue -- will be speaking Monday at a conference sponsored by the Corporation for National and Community Service (CNCS). This is the agency where Gerald Walpin was inspector general until June 11, when he was fired by President Obama.
The firing of Walpin was a display of raw "political muscle," says Chicago Tribune columnist John Kass, who smiles at the shock expressed by those who dwell in "the mythic transcendental fairyland where much of the Obama spin originates."
Malkin never inhabited any such mythic locale. Meanwhile, in the real world, little noted by transcendentalists, the inspector general overseeing the federal bailout is worried about "serious impact on the independence of our agency" and the inspector general of AmTrak resigned "unexpectedly" Thursday night.
Evidently, "the administration is undermining the promises the President made to make our government operations more transparent and to be more accountable to the voters," Jimmie Bise Jr. writes quite soberly. The promise of "transparency" was also recalled by Kim Priestap, who has never been to fairyland. Ed O'Keefe of the non-mythic Washington Post remarked on the effrontery of an administration official defending Walpin's abrupt dismissal as an "act of courage."
What's rapidly becoming transparent is that this administration desires to avoid the disinfecting sunshine of scrutiny. Chicago-on-the-Potomac is no mythic fairyland. If Obama has his way, what happens there won't be transcendental or transparent. It will be invisible.

-- RSM

I.G. PROBE: QUESTIONS ONBAILOUT WATCHDOG; UPDATE: HENSARLING ASKSFOR COMMITTEE PROBE

2009-06-19T17:00:00.001-04:00

UPDATE 5 P.M.:
A.I.G. INQUIRY TRIGGERED DISPUTE
ABC NEWS: The Treasury Department's ongoing dispute with bailout watchdog Neil Barofsky stems from the Obama administration’s refusal in April to hand over documents relating to AIG's executive compensation structure . . . "I strongly encourage the panel to promptly investigate these troubling reports," said Rep. Jeb Hensarling (R-TX) . . . READ MORE

ABC'S TAPPER GRILLS W.H. SPOKESMAN

GRASSLEY SEEKS GEITHNER ANSWER
WASHINGTON POST: Neil M. Barofsky, the special inspector general charged with overseeing the $700 billion bailout of the financial sector says he has been told by the Treasury Department that the agency has legal authority over his office, a claim that could threaten its independence. Sen. Charles E. Grassley of Iowa sent a letter to Treasury Secretary Timothy F. Geithner this week expressing concern about "potentially serious questions this issue raises about Treasury's respect for the [special inspector general's] independence and authority to access documents." . . . READ MORE

TREASURY: A.I.G. 'COINCIDENCE'
LOS ANGELES TIMES: A Treasury Department challenge to the authority of government bailout watchdog Neil M. Barofsky came just as he had begun a sensitive investigation of the department's role in approving bonuses to executives of insurance giant AIG . . . Asked why Barofsky's legal authority was challenged by the department just as the AIG inquiry began, Treasury Department spokesman Andrew Williams said: "It is entirely a coincidence." . . . READ MORE

'WHAT DOMINOES FALL NEXT'
ROBERT STACY McCAIN/PJM: Describing the probe into the dismissal of the AmeriCorps inspector general Gerald Walpin, one Capitol Hill source on Thursday compared Iowa Sen. Chuck Grassley’s demand for facts in the case to a row of dominoes ready to tip over. Grassley is asking questions, a team of Senate investigators is poring over documents in the case, and where the investigation proceeds now “depends on what dominoes fall next,” explained the source, who spoke on condition of anonymity. . . . READ MORE

COMMENTARY:
BILL WILSON/WASHINGTON TIMES: Thinking he could do as he pleased, Mr. Obama's initial justification for this cool display of corruption was that he had "lost confidence" in Mr. Walpin. When Republicans and Democrats in Congress refused to be mollified by this explanation, the White House shifted into "plumbers" mode . . . READ MORE

RUSH LIMBAUGH: A great example of what can happen when you fight back. The White House is reeling on this. They attempted to impugn the character and reputation of a fine man and he chose not to sit there and take it. And finally he's getting some backing from Republicans now who are getting courageous fighting this back. . . . READ MORE

BYRON YORK/WASHINGTON EXAMINER: What's next in the budding scandal over President Obama's abrupt firing of Gerald Walpin, the inspector general of AmeriCorps? . . . Republicans are brainstorming things they can do by themselves to shake loose information from an administration that has no obligation to cooperate with them. And indeed, there are a few ways. . . . READ MORE

BLOG REACTION: DAN RIEHL, NO SHEEPLES HERE, INSTAPUNDIT, GATEWAY PUNDIT, AMERICAN SPECTATOR, CREATIVE MINORITY REPORT, DAN COLLINS, PUNDIT & PUNDETTE, RHETORICAN, NICE DEB, MEMEORANDUM

PREVIOUSLY:

WALL STREET P.M. 06.19.09: DOW STAYS STAGNANT

2009-06-19T16:00:00.003-04:00

DJIA: -20.25 CLOSE 8,535.35
S&P 500: +2.86 CLOSE 921.23

NTC NEWS INSTANT SUMMARY: Morning gains faded Friday afternoon, as the Dow Jones Industrial Average failed to recover momentum. The Dow ending the week more than 250 points below the June 12 peak of nearly 8,800 that marked the peak of the three-month rally that began in March. The S&P 500 score a minor gain Friday, but closed about 25 points below its June 12 level.

WALL STREET P.M. 06.18.09:U.S. STOCKS CLAW UPWARDS

2009-06-18T17:00:00.003-04:00

DJIA: +58.42 CLOSE 8555.60
S&P 500 +7.66 CLOSE 918.37
NASDAQ -0.34 CLOSE 1807.72

STOCKS CLIMB AFTER THREE-DAY DIVE
WALL STREET JOURNAL: Stocks rallied for the first time in three days, led by increases in banking and health care sectors. The Dow Jones Industrial Average closed up over 58 points after shedding 300 points over the last five sessions, a 0.7 percent gain. . . .READ MORE HERE

ILLINOIS UNEMPLOYMENT
REACHES 25-YEAR HIGH
FORBES (AP): The May jobless rate in Illinois reached 10.1 percent, the highest for the state in 25 years. The state's Director of Employment Security expects the job losses to continue, though at a reduced rate. . . . READ MORE HERE

EMPLOYMENT PREDICTIONS A MIXED BAG
CNN MONEY: Though some data sets indicate that the historically-high U.S. unemployment rates have begun to slow, workers are not seeing signs that employers are ready to start hiring. The Labor Department says that 32% fewer jobs were lost in May than April but data from the Bureau of Labor Statistics indicates that the rate of new hires remains very low. . . .READ MORE HERE

CRITICS STRIKE AT THE HEART OF
PRESIDENT'S REGULATORY REFORMS
REUTERS: GOP Senators grilled Treasury Secretary Timothy Geithner over the particulars of President Obama's sweeping new financial regulatory reform plans. Senator Richard Shelby (R-AL) expressed doubt that the Federal Reserve was capable of the level of oversight the plan required. His concern was echoed by others, including Senator Christopher Dodd (D-Conn.), though Dodd remained generally supportive of Geithner. . . . READ MORE HERE

WHAT DOES SECRETARY GEITHNER WANT?
JAMES PETHOKOUKIS: Tim Geithner said, "You cannot convene a committee to put out a fire," then contradicted himself by suggesting to Congress that they convene a committee to put out regulatory fire. . . .READ MORE HERE