Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Money for nothing...
As Markets Waver, Treasury Yield Turns Negative
By MICHAEL M. GRYNBAUM and DAVID JOLLY
Published: December 9, 2008
A mixed day on Wall Street threatened to turn sour on Tuesday afternoon as stocks moved lower and investors fled to the safety of Treasury bills, sending the Dow Jones industrials down 242.85 points to 8,691.33.
Investors were so desperate to put their cash into government notes that they were willing to pay a penalty for the privilege: three-month notes traded at a negative yield, meaning that investors will receive about 99 cents on the dollar in return after the note matures. The news sends a sobering signal: in this environment, losing only a small amount of money on an investment is tantamount to coming out ahead.
Four-week Treasury bills, considered one of the safest possible short-term investments, traded at zero percent yields, and investors snapped up $30 billion worth. It was the lowest yield since the Treasury began issuing the notes in 2001.
A scramble into Treasury notes helps to line the federal coffers, providing money at a time when the government is embarking on ambitious stimulus projects with a price tag in the billions. Bank bailouts, credit facilities and public works programs will all be helped by the influx of investors’ cash.
http://www.nytimes.com/2008/12/10/business/10markets.html?hp
The only problem is that the WPA did not turn the economy around - after the initial buzz the US economy went straight back into a recession..
It went to recession when income taxes were raised to high, to soon.
OT: Shades of the New Deal's WPA
Posted By: John Simon
Highlighted in this article are the following E&C [Engineering & Construction] stocks: Granite Construction, Inc. (GVA), Perini Corporation (PCR), URS Corporation (URS), ABB Ltd. (ABB), Chicago Bridge & Iron Company N.V. (CBI), Foster Wheeler Ltd. (FWLT) and McDermott International (MDR).
The global economic growth - coupled with the attendant demand for oil, gas, petrochemicals and refined products - that stimulated investment in new and expanded plants over the last 12 to 24 months, appears to finally be slowing, if not reversing. In addition, given the now-declining demand for all manner of products - as well as the drop in the cost of oil and gas - the need for additional power may also be constrained. Consequently, now that these uncertainties have crept into global financial expectations, one might wonder what to do?
Back before the presidential election, we wrote:
"When FDR came into power, the WPA was the principal tool of his administration to turn the economy around (which had foundered then because investors borrowed money to buy stocks they couldn't afford, rather than homes, but the result was the same). There are a lot of unemployed people from the construction industry that could be put to work in all manner of ways that would enhance the country's resources as well as in rebuilding the country's infrastructure (such as the interstate highway system which was put into place during the Eisenhower era).
"Obviously, the candidates differ on how this might be accomplished, but the possibilities for the E&C companies should not be scoffed at, since the only other thing that worked better than the WPA in turning the economy around back then was WWII."
Well, guess what: it's a happening thing! Just as we had hoped he would, President-elect Obama intends to bring back the WPA -- in fact, if not in name. In his radio address last week, he outlined his plan for reinvigorating the nations' economy by putting people back to work enhancing the surface-transportation infrastructure (i.e., the interstate highway system), increasing energy efficiency (throw out those incandescent bulbs) and improving education facilities (HVAC for all).
The obvious beneficiaries of this action would be the Engineering & Construction companies involved in public works construction. These would include, but are not limited to: Granite Construction (GVA), Perini (PCR) and URS (URS).
On the other hand, companies that are involved in expanding the industrial infrastructure - including earth resources - may find themselves facing declining demand for their services. These would include, but are not limited to: ABB (ABB), Chicago Bridge and Iron (CBI), Foster Wheeler (FWLT) and McDermott Int'l (MDR).
OT: Jim, In one week X NUE CX CAT were up 15-40%
I took the gains and will look for another entry. I'm also looking for electrical grid plays for the longer term.
OT: Good bye infrastructure buys - eom
OT: Follow up to,
I'm thinking that Obama's stimulus plan will reportedly include a major infrastructure component there ought to be some opportunities such as equipment, steel, cement, etc. Since China is doing the same, demand could be high.
Didn't buy enough of CAT NUE CX but it's OK-bama.
I think that a 4GB model diminishes the value of the App Store in that the added cost of to go to 8GB would be made up by more App sales and a satisfied owner.
what's the subsidy on a two year basic cell phone plan?
It's significant at ~$500, IIRC
PDQ, w/o a data plan I doubt the carriers would pay Apple as big a subsidy as they do now.
Apple to Sell IPhones in Wal-Mart Stores This Month
Dec. 7 (Bloomberg) -- Wal-Mart Stores Inc. will become the second mass-market retail chain to start selling Apple Inc.’s iPhone, with two store representatives saying the world’s largest retailer will carry two models of the Web-surfing handset this month.
Employees in the cell-phone departments at five California stores, contacted by phone today, said Wal-Mart will offer iPhones by the end of December. Employees are currently being trained on how to sell the device, all five said.
Apple Chief Executive Officer Steve Jobs tapped Best Buy Co., the largest U.S. electronics retailer, in September to sell the device as he works to win more buyers. Before then, the iPhone had been sold only by Apple and AT&T Inc., the exclusive provider of wireless service for the phone in the U.S.
Analysts say Apple may offer a discontinued 4-gigabyte version through Bentonville, Arkansas-based Wal-Mart and sell it for $99. Apple currently sells two models at $199 and $299.
http://www.bloomberg.com/apps/news?pid=20601103&sid=a4YIU21gLaSY&refer=us
yofal, I have the Flip and my kid is always borrowing it on visits, so she'll get an HD for Xmas. It's perfect for snow boarders Direct to YouTube too.
Annie, check out the Flip Video MinoHD Camcorder
stills or video for about $200 http://tinyurl.com/6lfpz2
review http://tinyurl.com/6jz552
Apple, "Got to get a piece of this..."
Although he put no price tag on it, he said he would invest record amounts of money in the vast infrastructure program, which also includes work on schools, sewer systems, mass transit, electric grids, dams and other public utilities. He vowed to upgrade computers in schools, expand broadband Internet access, make government buildings more energy efficient and improve information technology at hospitals and doctors’ offices.
Pictures from Today Apple Store Opening in Munich (Germany)
http://www.mactechnews.de/gallery/topic.html?id=7
A great Panorama:
http://homepage.mac.com/wkaemena/FS/Muenchen/AppleMUC1/
Greets
Dirk
Microsoft Profit, Sales May Fall Short, Bellini Says (Update3)
http://bloomberg.com/apps/news?pid=20601204&sid=av9CNDunSgv8&refer=technology
By Dina Bass
Dec. 5 (Bloomberg) -- Microsoft Corp. may have to warn shareholders that profit and sales will fall short this quarter for the first time since 2000, according to Heather Bellini, an analyst at UBS AG.
Bellini, the top-ranked software analyst by Institutional Investor magazine, said every one of Microsoft’s five divisions may miss the company’s and analysts’ sales forecasts. The world’s biggest software maker won’t be able to cut enough costs to meet profit goals, New York-based Bellini said in an interview.
Microsoft said in October that it was preparing for a recession ranging from “mild” to “deeper” and forecast profit of as low as 51 cents a share and sales of as low as $17.3 billion. With consumers and corporations freezing spending, Bellini now expects the company to earn 48 cents a share on sales of $16.7 billion.
“Enterprises have gone on a buyers’ strike just like consumers have,” said Bellini. “You see the unemployment numbers -- I don’t think people are worrying about upgrading laptops and desktops.”
Adobe to pull out of Macworld 2009...
will spend more time on their installer
OT: Jim is Jim, Amazing that they try tu predict at all...
Treasury Spread: 10 yr bond rate-3 month bill rate: November 2008 = 3.34%
Today it's 2.54%
Probability of US Recession Predicted by Treasury Spread Less than 40% - made November 2008
Today we are in the twelfth month of one and then they footnote it. Oops.
Apple Tells Court It Believes Someone Is Behind Psystar; Adds New Claims, Including DMCA Violation
Wednesday, December 03 2008 @ 04:29 AM EST
Apple has filed a motion to amend its complaint [PDF] to add a claim of violation of the DMCA, among other new and enlarged claims. Here's the proposed Amended Complaint [PDF]. So, not only have all of Psystar's counterclaims been thrown out, but now it faces new claims. But here's the big news. Apple alleges that it believes there are corporations and/or individuals behind Psystar, who may be added as defendants once Apple in discovery finds out who they are. Woah. Here's the new paragraph that made my eyes bug out:
18. On information and belief, persons other than Psystar are involved in Psystar’s unlawful and improper activities described in this Amended Complaint. The true names or capacities, whether individual, corporate, or otherwise, of these persons are unknown to Apple. Consequently they are referred to herein as John Does 1 through 10 (collectively the “John Doe Defendants”). On information and belief, the John Doe Defendants are various individuals and/or corporations who have infringed Apple’s intellectual property rights, breached or induced the breach of Apple’s license agreements and violated state and common law unfair competition laws. Apple will seek leave to amend this complaint to show the unknown John Doe Defendants’ true names and capacities when they are ascertained.
So, Apple apparently believes that somebody else is behind Psystar, which might help to explain why a major law firm would take on what seems like a fly-by-night's case; also why Psystar has been so bold in continuing to sell its products. I knew this thing felt funny. As Alice in Wonderland might put it, "It gets interestinger and interestinger.”
Psystar has stipulated, consenting to the relief requested in the motion, so it will now happen and without a hearing. They have no hope of blocking this motion, I think, because it's timely, it's in good faith, and there is no prejudice to Psystar, since it's so early in the litigation and there's plenty of time for discovery. Apple makes all those points. So Psystar stipulated.
http://www.groklaw.net/article.php?story=20081202230318899
Google Calendar Now Supports Apple's iCal
Posted by Eric Zeman, Dec 1, 2008 06:25 AM
Google (NSDQ: GOOG) recently added support for Apple's native calendaring program. With a new tool, users can set it up so that Google Calendar and Apple's iCal can share information.
I've been waiting for this one for a while. Being able to sync my Google Calendar with my desktop calendaring program has been on my laundry list of features. I'm not the only one. According to Google, the feature has been requested heavily by others.
In response, Google made a tool available that lets you merge the two calendars. Google writes, "We launched CalDAV support to our developers last July for feedback, and since that time a few of us whipped up a nifty setup program for iCal. This tool makes it a breeze to get iCal working with your Google account. We've released this as open source and the program is available for download at our Google Code site."
I downloaded the tool. Set up couldn't have been easier. All you need to do is sign into your Google account, and it automatically ports your Google calendar items (even if you have multiple calendars as I do) and adds the events to iCal. It will also ask if you want to merge your contacts list as well.
Good stuff, Google. Good stuff.
Jim, I own the 10yt that pays 5% while I await the inflationist/deflation direction.
So far my investment has been up more than the DJIA is down so I have wait and see cushion :)
You're not alone
but in the minority :)
OT Demand for Treasuries has reached the ‘bubble” phase?
http://www.bloomberg.com/apps/news?pid=20601009&sid=aomPbuGQKgc0&refer=bond
The Simpsons mocks (m)Apple
http://www.dailymotion.com/aarplane/video/12725654
Apple Stores - update
251 (12/06/08) Rosenstrasse, Munich, Germany
http://web.me.com/tomminut/Site/Apple_Retail_Stores.html
Planned
The Promenade at Chenal, Little Rock, AR*
Scottsdale Quarter, Scottsdale, AZ
Otay Ranch, San Diego, CA*
State Street, Santa Barbara, CA*
The Promenade, Temecula, CA*
State Street, Chicago, IL
Main Place, Naperville, IL*
Grand Place, St. Paul, MN*
Shops at Friendly Center, Greensboro, NC*
1681 Broadway, New York, NY
South Hills Village, Bethel Park, PA*
Stonebriar Shopping Centre, Frisco,TX*
----
Robina Town Centre, Gold Coast, Australia*
Westfield Doncaster. Melbourne*
Carousel de Louvre, Paris, France
Bahnhofsstrasse 77, Zurich, Switzerland*
Church Hill Square. Brighton, UK*
Covent Garden, Westminster, London, UK
The Oracle, Reading, UK*
* Hiring
Annie, here's the wild bunch out my way. You can't get better eats.
pic taken with an iPhone
re Swappable batteries...
http://richardsolo.com/index.asp?PageAction=VIEWPROD&ProdID=264
http://daringfireball.net/2008/10/richard_solo_battery
"The bottom line, though, is that it’s the next best thing to having an iPhone with a longer-lasting internal battery."
yofal, maybe
"bloody, blimey, it beats bugger all."
Will "Pretty fast," do?
LONDON -(Dow Jones)- The U.K. Advertising Standards Authority has ruled an Apple Inc. (AAPL) television commercial for its iPhone 3G is misleading.
In a statement on its Web site, the ASA said the commercial's use of the phrase "really fast" was "likely to mislead" over the speed at which the device operated.
The ASA said it investigated the commercial after receiving 17 complaints.
Found Timothy F. Geithner at
http://www.newyorkfed.org/newsevents/speeches/2007/gei070323.html
He also said,
Innovations in credit markets are inevitably accompanied by challenges. Indeed, the history of innovation in financial markets provides many examples of periods of rapid change accompanied by fraud and abuse, by challenges in assessing value and risk, by concerns about the adequacy of investor and consumer protection, and by unexpected behavior of prices, defaults and correlations. To some degree, these types of problems are the inevitable consequence of change and innovation.
Apple Store Will Now Match Competitors’ Prices
Apple has apparently fired the first shot in the holiday shopping battle, by announcing internally that retail store employees have the authority to match the prices of other authorized retailers. The stores have also cancelled all regular presentations on Black Friday, posted holiday buying tips have on Apple’s retail Web page, and created a special iPhone 3G gift card to help bolster holiday sales. Up to now, the stores have not given managers the ability to approve certain “deals,” but there has been no general price matching policy. As well, Apple traditionally never discounts its products except on Black Friday. It’s not clear if the pricing matching will be publicly announced through advertising or Apple’s retail Web pages. The price flexibility does come with some restrictions, including the customer supplying proof of the competitor’s pricing. Last Sunday Best Buy announced $50 to $150 discounts on various computer models, while Amazon.com typically offers year-round discounts on Macintosh models.
"Name That Speaker..."
Timothy G, from Queens : )
Searching for ways to play
for someone who can't watch the tape all day
Lyrics by JiJ
I'm thinking that Obama's stimulus plan will reportedly include a major infrastructure component there ought to be some opportunities such as equipment, steel, cement, etc. Since China is doing the same, demand could be high.
Any names you all think might be worth a look.
Jim, As market fear declines rates should rise
but we're at the abyss and it's a craps shoot wether we topple or not.
Be careful Jim,
Treasury Traders Paid to Borrow
http://tinyurl.com/6q62wj
:Looks like rates are going lower.
10 Yr T-bonds are +20% YTD...
and Corporate bonds are doing well.
Who knows when inflation will return to drive rates up?
Best Buy cuts prices on Apple's Mac line for 4-day sale
By AppleInsider Staff
Published: 10:00 AM EST
Looking to get a jump-start on the holiday shopping season, Best Buy is working with Apple to host a 4-day only sale that offers instant discounts across the entire Mac product line, including $100 - $150 off the latest MacBook, MacBook Air, and MacBook Pro notebooks, and $50 - $150 off Mac minis, iMacs, and Mac Pros.
The specialty electronics reseller is said to have brought in "huge stock" over the weekend to support the promotion, which runs through Wednesday evening, and will be receiving additional stock sometime later today. In addition, Apple employees will be on hand at most Best Buy locations to interact with customers and help seal the deal.
The sale is also in effect through Best Buy online. In both cases, the retailer is offering no interest financing for 18 months. Anyone who purchases an Apple notebook will also qualify for two additional promotions, one which offers $39 - $70 off select printers, and another that offers 15% - 20% off notebook accessories.
http://tinyurl.com/5tw2qt
Feisty group today. EOM
Jim is Jim, make room under the overpass...
California unemployment jumps to 8.2%, third-highest in the U.S.
Big Three Loan Agreement Reached
No details announced...but I guess they're saying it's a done deal.
Madame Defarge will have to keep knitting.
Guillotine!
Guillotine!
Guillotine!
Berkshire's earnings are down 77% - em