Financials Still Calling the Market's Sickly Tune

Beat the Dart has an interesting take on this ..."... The Standard & Poor's 500 index 10.59, or 0.84 percent, to 1,252.31, as San Francisco Federal Reserve President Janet Yellen said in a speech the financial markets remained fragile, and that it will take time for conditions to improve. "My expectation is that market functioning will improve markedly by 2009," she said. "But things could get worse before they get better." ... Change support to 1216.96, last held on 06.13.05, and use resistance at 1330. ... Volatility, as measured by the Chicago Board Options Exchange's volatility index, hit its highest point since March, when worries about the financial markets peaked during the buyout of Bear Stearns Cos. Fear rules! ... Light, sweet crude fell $3.92 to close at $141.37 a barrel on the New York Mercantile Exchange, after falling by more than $5 a barrel at times. The retreat did little to reduce fears about high energy prices. Fear that consumers are trimming their spending to pay for gasoline. Fear that consumer spending, which accounts for more than two-thirds of U.S. economic activity, will get weaker, driving unemployment much higher. ... As indicated oil dropped over $4 a barrel Monday on profit taking and signals that Iran will be more flexible in negotiations over its nuclear program. Gain in the dollar, which reached a one-week high against a basket of major currencies, benefiting from a European Central Bank tone that has reduced expectations of further interest rate rises. Indeed, strength in the U.S. dollar can reduce the appeal of oil and other commodities to investors as a hedge against inflation. With oil up 40 percent this year, driven by the weak dollar and expectations that global supply will fail to keep pace with demand from fast growing Asian economies such as China, a major contraction not likely. A pullback to $125 can happen in short term, but trend is up based on our SPM matrix.

George War Bush has wrecked our economy with his ongoing wars in Iraq and Afghanistan that have ruined our economy with their extravagant expenses. Harvard should tale back his MBA. Wars do not lead to prosperity especially when they are so ongoing and inconclusive.

On what basis would any American give Geo. Bush or John Macain a single vote of support in November? Can this be explained? Perhaps the huge bonuses given to those who resign--My grandson, age 23, just received 30000 cash.

Look for the dollar to continue it's slide. Buy euros; gold if it retraces to sub 900.00 levels. The US economy is a house of cards and they have started to fall. It was bound to happen... the only thing that surprises me is that it took so long ;o).

Look for the dollar to continue it's slide. Buy euros; gold if it retraces to sub 900.00 levels. The US economy is a house of cards and they have started to fall. It was bound to happen... the only thing that surprises me is that it took so long ;o).

As we continue down this road of distruction, with BUSH leading the way we can ask the last person turn off the lights as he moves to MEXICO. With NAFTA and an out dated government we can all just stay at home it's going to be over for the UNITED STATES soon. We have opened the door to lost jobs, big profits to CEOs and low wage workers. This will soon be a place you can truly say we have the rich and the poor. Nothing in the middle any longer. But not to worry, our Great Government leaders are still cashing their check. And finding NEW way to SCREW US. I'm so tired of worrying if I'll ever find a job again it might be better to, well I'll let that go. We can't win anymore, you can voice all you want on the net, to Congress, to Mr. I'M HERE TO SCREW YOU BUSH, but they don't care and will continue down the same path, because we allow them to do it. I JUST WISH THEY WOULD BRING SOME LUBE AS THERE DOING IT.

As we continue down this road of distruction, with BUSH leading the way we can ask the last person turn off the lights as he moves to MEXICO. With NAFTA and an out dated government we can all just stay at home it's going to be over for the UNITED STATES soon. We have opened the door to lost jobs, big profits to CEOs and low wage workers. This will soon be a place you can truly say we have the rich and the poor. Nothing in the middle any longer. But not to worry, our Great Government leaders are still cashing their check. And finding NEW way to SCREW US. I'm so tired of worrying if I'll ever find a job again it might be better to, well I'll let that go. We can't win anymore, you can voice all you want on the net, to Congress, to Mr. I'M HERE TO SCREW YOU BUSH, but they don't care and will continue down the same path, because we allow them to do it. I JUST WISH THEY WOULD BRING SOME LUBE AS THERE DOING IT.

We are walking a tightrope.

How long has the trade balance been been out of balance? Consumers that borrow to purchase their products must pay. Ergo the trade balance. We have other countries products they have our money. If the dollar continues to deflate inflation must rise. After the consumer; us, reduces spending because of unaffordable products; scarcities may result. Will the dollar increase in value and goods decrease in cost? Thats deflationary and things must get very bad for deflation. In the meantime foreigners are buying up american companies, land--they sort of own us. Consumerism has beat us.

I dont think Bush to blame he is a victim of circumtances.Again 9.11,Afhanistan war,Middle East War,Oil Crisis, Inflation, Credit Crisis.It is all unexpected facts that just come. It doen not start in America the war,Who start it ? The answer you know better.Bush just response to the threat.Oil Crisis,you use it everyday did you conserve energy in the past..You know the answer.Did you expense over the budget limit.You know the answer....Credit crisis.. Did you spend more and pay a little or spend over your credit limit. You know the answer.Do we have newoil well and new wxploration on our soil.The answer is no..and you know it better. Why not blame others.Which the blame is on us too.

if people would stop hating and blaming Bush and attacking the problem,maybe we just might find a solution

Money and wealth is being washed out of the system. I agree we need to look for answers, nature is giving us some pretty strong signals we could generate a lot of business with wind, solar, geothermal lots of potential with renewables. Better insulation smaller cars mass transit, light rail, all ultimate money and energy savers and earth/nature friendly. Our kids will appreciate mother nature that isn't so mad more then a bunch of worn out products or money that can't help.

I guess this is one of the reasons Poole is gone. Boy the story has changed since November 2006... Too big to fail I worked for a 240m dollar telco start up in 2000 and said the same thing.. The FED should forget there banking buddies and save the dollar... "I believe that supervisory oversight is in pretty good shape, with one glaring exception. Government-sponsored enterprises are not adequately capitalized and the supervisory powers of the Office of Federal Housing Enterprise Oversight (OHFEO) are inadequate. I’ll concentrate on the housing GSEs—Fannie Mae and Freddie Mac. This is a topic I’ve addressed several times in the past (Poole, 2003 and 2004) and I’ll not repeat those arguments in any detail here. Although the GSEs are not formally insured by the federal government, the market clearly believes that they are effectively backstopped. As I’ve emphasized before, the Federal Reserve does not have the legal authority to bail out a troubled GSE. The Fed can provide liquidity support through its discount window, but only indirectly through collateralized loans to banks that would then bear the credit risk of making loans to a troubled firm. Under emergency conditions, the Fed does have the authority to make loans directly to a GSE, but the loans must be fully collateralized. The Fed is obviously disinclined to use its emergency powers to lend to firms other than banks; despite numerous financial upsets over the years, the Fed has not used this authority since the 1930s. http://www.stlouisfed.org/news/speeches/2006/11_16_06.html

good moring frinds