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Fed receives 66 bidders for $30 bln special credit auction
By Greg Robb
Last update: 10:16 a.m. EST Feb. 12, 2008Print RSS Enable Live Quotes
WASHINGTON (MarketWatch) -- The Federal Reserve on Tuesday said it received 66 bidders for its Monday auction of $30 billion in 28-day credit. The loans are being offered as part of a special term auction facility to help alleviate liquidity problems in global financial markets stemming from losses due to risky mortgage-backed securities. Total propositions submitted reached $58.4 billion, for a bid/cover ratio of 1.95. The awarded loans will settle on Thursday, and will mature on March 13.
Fed. 2day RP + 6.25B [net drain -2.00B
http://www.gmtfo.com/RepoReader/OMOps.aspx
Fed. 2day RP + 6.25B [net drain -2.00B
http://www.gmtfo.com/RepoReader/OMOps.aspx
Coeur Begins Pre-Commissioning of San Bartolome Silver Mine in Bolivia
Tuesday February 12, 8:30 am ET
Expected to Become World's Largest Pure Silver Mine
COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Coeur d’Alene Mines Corporation (NYSE:CDE - News) (TSX:CDM - News) (ASX:CXC - News) announced today that it has begun pre-commissioning activities at its San Bartolomé silver mine, which is expected to produce over ten million ounces of silver during its first twelve months of full-scale operations.
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All major plant equipment at San Bartolomé is now in place. The Company expects the processing facilities to be connected to the national electrical grid during the second half of February, at which point full commissioning of the crushers and mills will commence. Processing of ore is expected to begin during the second half of March. Production and plant utilization will then steadily increase with full plant capacity anticipated to be reached in August.
“In reaching the finish line at the San Bartolomé silver mine, we are very pleased to report the success in completing this world-class project while maintaining the highest standards of safety, quality of construction, and adherence to cost and scheduling,” said Dennis E. Wheeler, Chairman, President and Chief Executive Officer. “Over 1,600 workers, almost all of them Bolivians, have done an excellent job in constructing what will be the world’s largest pure silver mine, surpassing over 3.7 million man hours without a lost time accident, a truly remarkable achievement given the size and scope of this state-of-the-art facility. Coeur is proud of the strong community, government and economic relationships we have developed with the people and organizations of Potosi and Bolivia, and the Company is excited about placing the mine into production and generating value for all stakeholders.”
Coeur Begins Pre-Commissioning of San Bartolome Silver Mine in Bolivia
Tuesday February 12, 8:30 am ET
Expected to Become World's Largest Pure Silver Mine
COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Coeur d’Alene Mines Corporation (NYSE:CDE - News) (TSX:CDM - News) (ASX:CXC - News) announced today that it has begun pre-commissioning activities at its San Bartolomé silver mine, which is expected to produce over ten million ounces of silver during its first twelve months of full-scale operations.
ADVERTISEMENT
All major plant equipment at San Bartolomé is now in place. The Company expects the processing facilities to be connected to the national electrical grid during the second half of February, at which point full commissioning of the crushers and mills will commence. Processing of ore is expected to begin during the second half of March. Production and plant utilization will then steadily increase with full plant capacity anticipated to be reached in August.
“In reaching the finish line at the San Bartolomé silver mine, we are very pleased to report the success in completing this world-class project while maintaining the highest standards of safety, quality of construction, and adherence to cost and scheduling,” said Dennis E. Wheeler, Chairman, President and Chief Executive Officer. “Over 1,600 workers, almost all of them Bolivians, have done an excellent job in constructing what will be the world’s largest pure silver mine, surpassing over 3.7 million man hours without a lost time accident, a truly remarkable achievement given the size and scope of this state-of-the-art facility. Coeur is proud of the strong community, government and economic relationships we have developed with the people and organizations of Potosi and Bolivia, and the Company is excited about placing the mine into production and generating value for all stakeholders.”
Hands off financial markets: White House
Government would only get in way of market's self-correction: new report
By Greg Robb, MarketWatch
Last update: 1:39 p.m. EST Feb. 11, 2008Print E-mail RSS Enable Live Quotes
WASHINGTON (MarketWatch) -- The White House sent a message to Congress that it is not eager to see legislation aimed at greater oversight of financial markets and banks in the wake of the credit squeeze that began last August
http://www.marketwatch.com/news/story/white-house-warns-congress-about/story.aspx?guid=%7B9151DB91%2D4B31%2D4A85%2D9F5A%2D0985561DD765%7D
Hands off financial markets: White House
Government would only get in way of market's self-correction: new report
By Greg Robb, MarketWatch
Last update: 1:39 p.m. EST Feb. 11, 2008Print E-mail RSS Enable Live Quotes
WASHINGTON (MarketWatch) -- The White House sent a message to Congress that it is not eager to see legislation aimed at greater oversight of financial markets and banks in the wake of the credit squeeze that began last August
http://www.marketwatch.com/news/story/white-house-warns-congress-about/story.aspx?guid=%7B9151DB91%2D4B31%2D4A85%2D9F5A%2D0985561DD765%7D
Fed. 1day RP + 8.25B [net add +5.00B
Fed. 1day RP + 8.25B [net add +5.00B
Futures (2) + World Indices
http://www.cme.com/dta/del/globex.html
http://money.cnn.com/data/premarket/
World Indices (2) Mini Charts
Updates every 60sec ~ Watch the dates!!
http://www.wwfn.com/commentary/oscharts.html
http://www.allstocks.com/markets/World_Charts/Asian_Stock_Markets/asian_stock_markets.html
Wheat hits $20 in North Dakota and Minnesota
Stephen J. Lee, Grand Forks Herald
Published Sunday, February 10, 2008
GRAND FORKS, N.D. - The wheat market moved into historic ground Friday in North Dakota and Minnesota, as short-term demand from mills pushed prices up to $20 a bushel at one elevator in an after-hours scramble.
Most elevators in northeast North Dakota and northwest Minnesota posted prices of $16.70 to $17.30 Friday, according to an Agweek survey; that's four times as high as a year ago and the highest figures ever seen.
http://www.wctrib.com/articles/index.cfm?id=31656
Dave Lokken, manager of AGP Elevator in Valley City, N.D., posted a bid of $18.25 Friday. But the market was much hotter than that.
"After the close, we bought 50,000 bushels of wheat at 20 bucks," Lokken said. "That's a million dollars worth of wheat."
The AGP buyer on the "floor," in the Minneapolis Grain Exchange told him late Friday, "Just see what it would take to buy X amount of bushels of wheat," Lokken said. "So, we went to a few guys and asked, what would you sell wheat at? They said 20 bucks. So we said, if we paid you 20 bucks, would you sell? Some of them did. Amazingly, some of them said they wanted 30."
One sign of how immediate and red-hot the demand is: The basis, or the difference between what a local elevator in North Dakota will pay for wheat, and the cash price in Minneapolis or the nearby futures price in Minneapolis, is now at "575 over," Lokken said. That is, $5.75 a bushel higher at the elevator than at the terminal market, instead of the more typical 60- to 80-cent discount of local prices to Minneapolis prices, indicating transportation and time costs.
"They are so short of wheat right now," he said. "The millers are on the floor in Minneapolis, and they are seeing no cars of wheat coming in."
'Fun money'
This is the highest "over" basis Lokken has ever seen. "The most I've ever seen was back in the 1990s, when it went to 300 over."
The few bushels of wheat left out on farms are "unencumbered," Lokken said. "The farmer has paid all his bills, and he's got this bin of wheat standing there, call it fun money, house money, whatever they are going to use it for. They don't need to sell it, and they want as much as they can get for it."
One of his longtime farm customers sold him 3,500 bushels of wheat Friday, after the close, enough to fill one rail car. "That's $70,000," he said.
It took the farmer maybe only 80 acres to grow the wheat, at typical yields in Barnes County. That would mean the farmer grossed $875 an acre on that field, an amazing figure, given that wheat typically grosses $200 or less per acre.
Farmers already have been spending extra money earned by this year's high prices in all crops, Lokken said. Soybean prices are at record levels of about $12 a bushel at area elevators and barley is higher than wheat usually is, at $6 a bushel at many elevators.
"There are whole new lines of machinery on some of these farms," Lokken said. "New tractors, new combines, new planting equipment."
But much of the wheat this year was sold between $5.50 and $7, Lokken and other elevator managers say.
"The guys who don't have any wheat left, it just demoralizes them to see that $20 price. To think, if they had been sitting on 10,000, 20,000, 30,000 bushels of wheat, how much money that is."
Historic highest price of $20 a bushel for spring wheat is a record, by far, in nominal terms.
But if the historic highs reached in 1973, after the Soviet Union's first big forays into the world market, are adjusted for inflation, the $5 per-bushel price would be roughly $22 a bushel in today's dollars.
For the past six months or more, the world wheat market has been steadily pushing prices up, as supplies are at historic lows, and demand continues to grow. Several large producing nations had bad crops two years in a row, and new wealth in places such as China and India, combined with the weakness of the U.S. dollar, which makes American wheat a better buy worldwide have contributed to the unslaked demand.
The record prices in many commodities have attracted big-money investors, including hedge funds, especially in light of a stock market that is more down than up, and a real estate market in severe correction from record highs the past three years.
Lokken said one large hedge fund has bought up big grain elevator properties, including a former Cargill terminal in Duluth. "We are trying to figure out why did this fund wants to buy up elevator properties?"
Now, the big question is what this shockingly high wheat market will mean in the bigger picture, Lokken said.
"Well, there are going to be headlines, I'm telling you," Lokken said. "I don't know what's going to happen at the grocery store."
The food price inflation rate more than doubled last year, to a 17-year-high of 4.8 percent and some experts think it will almost double again this year, the St. Paul Pioneer Press reported this week.
"We're projecting that food inflation in the U.S. is going to be 8 percent," Mark Palmquist, executive vice president for the ag businesses of CHS, a farmer-owned cooperative based in Inver Grove Heights, Minn., told the Pioneer Press. "Demand is so interesting this time around. It seems to be very insensitive to the price rises."
All the spring wheat futures contracts closed up the limit of 30 cents a bushel on Friday, to $15.53 for March, the highest price ever seen at the century-old Exchange. The price Friday for the September contract, or next season's crop, was $11.45, also up 30 cents on the day.
Lokken said he was told by buyers in Minneapolis on Friday that the Minneapolis Grain Exchange, the only futures market for hard red spring wheat in the world, will raise its daily trading limits from 30 cents a bushel to 60 cents a bushel Monday.
"They had been talking about raising it to 40 cents just a few days ago," Lokken said. "Now, they are going up to 60 cents."
Farmers are likely to put more acres into spring wheat this spring, rather than corn, which is priced at about $4.60 a bushel, Lokken said. "But they are really scared," he said. "Last year, they did all the contracting early." That meant many missed out on higher prices.
"Now, we are at twice the level, about $10.90 for new crop," Lokken said. "But inputs are going through the ceiling. Fertilizer prices have doubled since harvest. You could buy nitrogen-phosphate mix for $350 or $400 a ton this past fall, now it's 700-some bucks. That's the scary thing, what's going to happen here."
Land prices are reaching record levels, too.
A parcel sold for $1,700 an acre Friday near Valley City, Lokken said. The best black soil in the Red River Valley has seen sales of $4,000 to as high as $5,700 an acre in recent weeks.
Just buying seed will be costly.
It looks like farmers will have to pay $23 to $25 a bushel to get wheat to plant their crop this spring, Lokken said.
The wheat he bought Friday will be delivered in late February or early March because he's got so much corn and soybeans to move now he can't take it yet, Lokken said.
He doesn't think the market has hit the top yet.
"We will see what happens," Lokken said. "I bet you that on Monday, we won't be the only elevator out there bidding $18, $20."
Wheat Surges to Record as U.S. Supply May Drop to 60-Year Low
By Tony C. Dreibus
Feb. 8 (Bloomberg) -- Wheat rose to a record for a third day on the Chicago Board of Trade as the U.S. forecast its lowest inventories in 60 years.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aUZnQiEJjxuA&refer=home
Ackerman: Gold Bugs Should Put Caution Aside
by Rick Ackerman
Sunday, 10 February 2008
Gold passed every strength test we could devise last week, ending on an upswing that hints of significantly more upside to come. From a purely technical standpoint, we like the fact that corrections have been routinely reversing at Fibonacci-based supports, and that most of the subsequent rebounds have easily surpassed at least two prior peaks on the hourly chart without pausing for breath. Such rallies are known as “impulse legs” in our Hidden Pivot nomenclature, and the ones that we’ve been seeing in bullion lately have been giving us the confidence to trade and position from the long side even as some well-known gold bulls have been calling for an correction to as low as $750.
We’ll be ready if and when it comes, since no important price reversal can possibly occur without signaling us first on the five- and fifteen-minute charts. When bearish impulse legs start to metastasize for a day or two in this way, that will be our warning to reef the sails. However, so far, gold has shown no signs of weakness, only a heartening eagerness to move higher.
Certain developments have understandably stoked fears that bullion is overdue for a punitive correction. For one, a sharp dive recently in Europe’s economic vital signs appears to be turning the European Central Bank dovish, and that would be bullish for the dollar, at least in theory. And for two, despite extremely aggressive easing by the Fed in recent weeks, the dollar has stood its ground. If it survived such a nasty hit without falling to new lows, the thinking goes, then it must be revving up for a powerful rally. Thus, with two seemingly good reasons for the dollar to strengthen, gold can only go down, right?
Credit-Fairy Skeptics
We don’t think so, and here’s why. In the first place, there is no chance the ECB is going to ease more aggressively than the Fed. Although most American economists evidently believe that easy money is the way back to growth, their European counterparts have never put much store in the credit fairy. Consequently, the ECB could lower administered rates somewhat, but not nearly as much as the Fed. And this means that both the dollar and the euro should continue to cede ground to gold.
Goldbugs who are worried about a rising dollar should keep in mind that when we speak of a “strong” dollar, it is only relative to other currencies, all of which are fundamentally worthless, that it could be so egregiously mischaracterized. In the weeks and months ahead, if the ECB shades toward easing, that could slow the dollar’s decline relative to the euro, but both currencies can only fall relative to gold. Indeed, gold priced in euros has just broken out on the long-term charts. As it gathers strength for an historic push above $1,000, we see little reason for caution.
http://news.goldseek.com/RickAckerman/1202686333.php
Ackerman: Gold Bugs Should Put Caution Aside
by Rick Ackerman
Sunday, 10 February 2008
Gold passed every strength test we could devise last week, ending on an upswing that hints of significantly more upside to come. From a purely technical standpoint, we like the fact that corrections have been routinely reversing at Fibonacci-based supports, and that most of the subsequent rebounds have easily surpassed at least two prior peaks on the hourly chart without pausing for breath. Such rallies are known as “impulse legs” in our Hidden Pivot nomenclature, and the ones that we’ve been seeing in bullion lately have been giving us the confidence to trade and position from the long side even as some well-known gold bulls have been calling for an correction to as low as $750.
We’ll be ready if and when it comes, since no important price reversal can possibly occur without signaling us first on the five- and fifteen-minute charts. When bearish impulse legs start to metastasize for a day or two in this way, that will be our warning to reef the sails. However, so far, gold has shown no signs of weakness, only a heartening eagerness to move higher.
Certain developments have understandably stoked fears that bullion is overdue for a punitive correction. For one, a sharp dive recently in Europe’s economic vital signs appears to be turning the European Central Bank dovish, and that would be bullish for the dollar, at least in theory. And for two, despite extremely aggressive easing by the Fed in recent weeks, the dollar has stood its ground. If it survived such a nasty hit without falling to new lows, the thinking goes, then it must be revving up for a powerful rally. Thus, with two seemingly good reasons for the dollar to strengthen, gold can only go down, right?
Credit-Fairy Skeptics
We don’t think so, and here’s why. In the first place, there is no chance the ECB is going to ease more aggressively than the Fed. Although most American economists evidently believe that easy money is the way back to growth, their European counterparts have never put much store in the credit fairy. Consequently, the ECB could lower administered rates somewhat, but not nearly as much as the Fed. And this means that both the dollar and the euro should continue to cede ground to gold.
Goldbugs who are worried about a rising dollar should keep in mind that when we speak of a “strong” dollar, it is only relative to other currencies, all of which are fundamentally worthless, that it could be so egregiously mischaracterized. In the weeks and months ahead, if the ECB shades toward easing, that could slow the dollar’s decline relative to the euro, but both currencies can only fall relative to gold. Indeed, gold priced in euros has just broken out on the long-term charts. As it gathers strength for an historic push above $1,000, we see little reason for caution.
http://news.goldseek.com/RickAckerman/1202686333.php
W@G1 QQQQ 02/11/08 for a 02/13/08 close
43.00 dr_sean
44.32 frenchee
43.75 bob3
45.30 Farooq although realistic up ward movement can stall and close at 44.80, but what do I know, could be wrong as usual.
nice waggin farooq /
Consider PAL SWC
http://finance.yahoo.com/q?s=PAL,SWC&d=s
US platinum rises toward $1,900, gold up on funds
Fri Feb 8, 2008 3:01pm EST
http://www.reuters.com/article/marketsNews/idINN0853056220080208?rpc=44
NEW YORK, Feb 8 (Reuters) - U.S. platinum futures finished
sharply higher after a rally toward $1,900 on Friday, boosted
by a supply squeeze due to ongoing mining issues in top
producer South Africa, while gold contracts also jumped on
strong buying by commodity funds.
Market watchers had forecast that the global platinum
market to be in a slight deficit this year, even before a power
crisis in South Africa crippled mining operations in the
world's largest precious metals producer, which accounts for
about 80 percent of the world's output.
"It looks like people are concerned about platinum supply
as the auto industry is forecast to use more diesel. For
example, in China, all cars are mostly powered by diesel," said
George Gero, vice president of RBC Capital Markets Global
Futures in New York.
Until recently, only platinum was used in diesel engines,
but new technologies allow the use of up to 25 percent of
palladium in diesel autocatalysts.
The active NYMEX platinum contract for April delivery
PLJ8 finished up $32.60 or 1.8 percent at $1,884.00 an
ounce.
The April contract had initially dropped and bottomed at
$1,837.10 as investors took profits, but later reached an
all-time peak of $1,886.90. Spot platinum <XPT=> fetched
$1,880/1,888.
A large portion of the world's platinum production is used
as autocatalyses to clean vehicle exhaust fumes. The white
metal is also consumed by the jewelry industry.
James Moore, analyst at TheBullionDesk.com in London, also
told clients in a note that supply concerns caused by power
disruptions in South Africa should continue to bolster the
platinum market.
"Given the tight fundamentals, the metal could easily be
squeezed to $2,000 an ounce, with dips for now still being
viewed as buying opportunities," Moore said.
The April platinum contract, which has now reached a record
high in each of the last seven sessions, has gained nearly
$400, or 25 percent, in just three weeks.
Power has been restored to most South African mines, but
only 90 percent of their normal requirements, leaving company
executives and shareholders anxious over potential losses and
helping send precious metal prices to records on supply
worries.
An informal survey of analysts responding to a Reuters
precious metals price poll showed the market balance for
platinum at an average deficit of 181,500 ounces by the end of
2008, narrowing slightly to 175,000 in 2009. [ID:nL23492373]
For sister-metal palladium, the NYMEX March contract PAH8
climbed $12.40, or 2.9 percent, to $440.85 an ounce. It had
peaked at a fresh record of $441.50. Spot palladium <XPD=>
fetched $436/441 an ounce.
GOLD AIMS AT $930
Gold futures also jumped onÿ strong fund buying as rising
prices triggered chart-based buy stops. The news of the world's
top gold miners AngloGold Ashanti (ANGJ.J: Quote, Profile, Research) and Buenaventura
(BUEv.LM: Quote, Profile, Research)(BVN.N: Quote, Profile, Research) reducing their hedge-books also boosted
prices.
The gold contract for April delivery at the COMEX division
of the NYMEX GCJ8 finished up $12.30 or 1.4 percent at
$922.30 an ounce, trading between $911.30 and $924.20.
Jonathan Jossen, independent COMEX floor trader in New
York, said that gold was riding on a broad metals rally in
spite of initial profit taking ahead of the weekend.
On Friday, silver rose 2 percent while copper and palladium
also surged almost 3 percent.
"I just think gold is going to explode. There is big fund
buying in all months in the futures market" including the
December and June contracts, Jossen said.
RBC's Gero said that the divergence of gold from the
currency market and a sharp rally in platinum on Thursday were
bringing dealers back into the market.
At 2:15 p.m., spot gold <XAU=> was quoted at
$918.00/918.70, versus Thursday's New York close of
$908.80/909.50. London bullion dealers fixed the afternoon spot
price at $916.25.
COMEX March silver SIH8 was up 33.5 cents, or 2.0
percent, to $17.110 an ounce, trading between $16.785 and
$17.220.
Spot silver <XAG=> was at $17.10/17.15, compared with its
last Tuesday quote of $16.74/16.79. London silver was fixed at
$16.95.
(Reporting by Frank Tang; Editing by Christian Wiessner)
Consider PAL SWC
http://finance.yahoo.com/q?s=PAL,SWC&d=s
US platinum rises toward $1,900, gold up on funds
Fri Feb 8, 2008 3:01pm EST
http://www.reuters.com/article/marketsNews/idINN0853056220080208?rpc=44
NEW YORK, Feb 8 (Reuters) - U.S. platinum futures finished
sharply higher after a rally toward $1,900 on Friday, boosted
by a supply squeeze due to ongoing mining issues in top
producer South Africa, while gold contracts also jumped on
strong buying by commodity funds.
Market watchers had forecast that the global platinum
market to be in a slight deficit this year, even before a power
crisis in South Africa crippled mining operations in the
world's largest precious metals producer, which accounts for
about 80 percent of the world's output.
"It looks like people are concerned about platinum supply
as the auto industry is forecast to use more diesel. For
example, in China, all cars are mostly powered by diesel," said
George Gero, vice president of RBC Capital Markets Global
Futures in New York.
Until recently, only platinum was used in diesel engines,
but new technologies allow the use of up to 25 percent of
palladium in diesel autocatalysts.
The active NYMEX platinum contract for April delivery
PLJ8 finished up $32.60 or 1.8 percent at $1,884.00 an
ounce.
The April contract had initially dropped and bottomed at
$1,837.10 as investors took profits, but later reached an
all-time peak of $1,886.90. Spot platinum <XPT=> fetched
$1,880/1,888.
A large portion of the world's platinum production is used
as autocatalyses to clean vehicle exhaust fumes. The white
metal is also consumed by the jewelry industry.
James Moore, analyst at TheBullionDesk.com in London, also
told clients in a note that supply concerns caused by power
disruptions in South Africa should continue to bolster the
platinum market.
"Given the tight fundamentals, the metal could easily be
squeezed to $2,000 an ounce, with dips for now still being
viewed as buying opportunities," Moore said.
The April platinum contract, which has now reached a record
high in each of the last seven sessions, has gained nearly
$400, or 25 percent, in just three weeks.
Power has been restored to most South African mines, but
only 90 percent of their normal requirements, leaving company
executives and shareholders anxious over potential losses and
helping send precious metal prices to records on supply
worries.
An informal survey of analysts responding to a Reuters
precious metals price poll showed the market balance for
platinum at an average deficit of 181,500 ounces by the end of
2008, narrowing slightly to 175,000 in 2009. [ID:nL23492373]
For sister-metal palladium, the NYMEX March contract PAH8
climbed $12.40, or 2.9 percent, to $440.85 an ounce. It had
peaked at a fresh record of $441.50. Spot palladium <XPD=>
fetched $436/441 an ounce.
GOLD AIMS AT $930
Gold futures also jumped onÿ strong fund buying as rising
prices triggered chart-based buy stops. The news of the world's
top gold miners AngloGold Ashanti (ANGJ.J: Quote, Profile, Research) and Buenaventura
(BUEv.LM: Quote, Profile, Research)(BVN.N: Quote, Profile, Research) reducing their hedge-books also boosted
prices.
The gold contract for April delivery at the COMEX division
of the NYMEX GCJ8 finished up $12.30 or 1.4 percent at
$922.30 an ounce, trading between $911.30 and $924.20.
Jonathan Jossen, independent COMEX floor trader in New
York, said that gold was riding on a broad metals rally in
spite of initial profit taking ahead of the weekend.
On Friday, silver rose 2 percent while copper and palladium
also surged almost 3 percent.
"I just think gold is going to explode. There is big fund
buying in all months in the futures market" including the
December and June contracts, Jossen said.
RBC's Gero said that the divergence of gold from the
currency market and a sharp rally in platinum on Thursday were
bringing dealers back into the market.
At 2:15 p.m., spot gold <XAU=> was quoted at
$918.00/918.70, versus Thursday's New York close of
$908.80/909.50. London bullion dealers fixed the afternoon spot
price at $916.25.
COMEX March silver SIH8 was up 33.5 cents, or 2.0
percent, to $17.110 an ounce, trading between $16.785 and
$17.220.
Spot silver <XAG=> was at $17.10/17.15, compared with its
last Tuesday quote of $16.74/16.79. London silver was fixed at
$16.95.
(Reporting by Frank Tang; Editing by Christian Wiessner)
Louise Yamada
She was on cnbc Wednesday. She had a nice spx chart.
See chart video here
http://www.cnbc.com/id/23031631
these were her comments
Chart: S&P 500, 1993-2008, with 20-month moving average.
It looks as if we're in the midst of a structural sell-off, Yamada says the likes of which we haven't seen since 2000. We could be in for an extended bear market period – and it could be global. Sell any rally, she counsels.
Chart: Monthly Relative Performance of S&P Consumer Staples, 1998-2008
If you must be in the market, consumer staples appear to be holding up, Yamada says, and should continue to do so. However this doesn’t mean the prices can’t come down – it just suggests the prices should come down, less.
Chart: Monthly Relative Performance of S&P Financials, 1996-2008
This chart suggests that financials are falling apart, observes Yamada, and that they could continue to deteriorate. Sell the strength.
Conclusion: Better to be out of the market right now wishing you were in.. than in the market wishing you were out.
Courtesy...challo
reply by
------
Seen her before, she does good work. the only problem I have is that she is comparing the current market, one with a PE around 13.5-14, to the internet bubble. Although we should note that it did take over a year for the market to finally reach a bottom after the recession was over. However,I still think the exorbitant PE's had something to do with that. (JMHO) CHUBBIE
Fed. Ops: 8.25B Matures this week.
Mon: 3.25B 3day
Thu: 5.00B 14day
Float 15.25B
=========================================================
Temp Ops:
Perm Ops:
=========================================================
Public Debt:
Limit ~ $9,815 T
2/07 ~~ $9,242 T ~~ New high for IOUs, l dono draining as we l see it should reduce the Dept...fiscal BS.
=========================================================
The Slosh Report:
http://www.gmtfo.com/RepoReader/OMOps.aspx
Fed. Ops: 8.25B Matures this week.
Mon: 3.25B 3day
Thu: 5.00B 14day
Float 15.25B
=========================================================
Temp Ops:
Perm Ops:
=========================================================
Public Debt:
Limit ~ $9,815 T
2/07 ~~ $9,242 T ~~ New high for IOUs, l dono draining as we l see it should reduce the Dept...fiscal BS.
=========================================================
The Slosh Report:
http://www.gmtfo.com/RepoReader/OMOps.aspx
U.S. widens probe, seeks Merrill information
http://www.marketwatch.com/news/story/us-reportedly-widens-mortgage-probe/story.aspx?guid=%7B056D9289%2DCF08%2D42D7%2DA938%2D6EEDFFEBAF02%7D
As soon as hits his desk, then wheels
of wash take over, your checks prob in april.
Fed. 3day RP + 3.25B [net Drain -1.00B ]
Fed. 3day RP + 3.25B [net Drain -1.00B ]
Bank of America, Financial Security in SEC Muni Probe (Update1)
By Martin Z. Braun and William Selway
Enlarge Image/Details
Feb. 8 (Bloomberg) -- Bank of America Corp. and Dexia SA's Financial Security Assurance Holdings Ltd. said they may be sued by the Securities and Exchange Commission in connection with an investigation into financial products sold to local governments.
Financial Security disclosed in a regulatory filing yesterday that it received a so-called Wells Notice on Feb. 4, indicating that the agency's investigators may recommend legal action. Bank of America spokeswoman Shirley Norton said the Charlotte, North Carolina-based bank also got a notice.
FSA was one of more than a dozen banks, insurance companies, and advisers subpoenaed in November 2006 by the SEC and U.S. antitrust regulators probing whether they conspired to rig the bidding for investment contracts state and local governments buy with the proceeds of bond money. Bank of America last year agreed to cooperate with the Justice Department in exchange for leniency.
``This is a procedural development in an investigation that began 15 months ago and does not necessarily indicate any negative outcome,'' said Betsy Castenir, a spokeswoman for Financial Security. Dexia, the largest European lender to local governments, is based in Paris and Brussels.
When Financial Security first disclosed the investigation in 2006, it said it wasn't aware of any specific allegations of misconduct. Castenir declined to comment further on the investigations, other than to say the company is cooperating with U.S. officials.
A Wells Notice informs a company that an investigation by regulators is completed and civil charges may be filed. The notice gives the company the right to explain its conduct in an attempt to persuade regulators that no action is needed.
IRS Rules
Local governments use guaranteed investment contracts to invest the proceeds of municipal bond offerings until the money is needed to pay for projects. IRS rules require such contracts to be awarded competitively and prevent state and local governments, or their advisers, from profiting by selling bonds at tax-exempt rates and then investing the cash at higher yields. Such earnings, known as arbitrage, must be repaid as taxes.
The IRS is concerned that unfair bidding on investment contracts may have deprived the federal government of money, much like the so-called yield burning scandals of the 1990s, when Wall Street banks overcharged municipal borrowers for Treasury bond investments.
Black Box Deals
State and local government agencies that sold bonds to create pools of money for projects like low-income housing frequently purchased guaranteed investment contracts with the money. In some cases, such bond sales, sometimes called black-box deals, were never spent on their intended purpose and remained in the accounts, generating fees, until they were used to retire the debt.
FSA and Bank of America were among the six firms that bid for the rights to invest $150 million of bond money for the Housing Authority of Fulton County, Georgia, all of which remained in the investment account until it was later used to buy back the bonds, public records show. New York-based American International Group Inc. was the winning bidder in that case.
The two were also among four bidders for a similar contract with the Industrial Development Authority of Pima County, Arizona, one of more than 20 housing-program bond issues the IRS called ``schemes'' for capturing investment earnings produced by tax-exempt bond deals. Neither won the contract.
Bank of America fell 16 cents, or 0.3 percent, to $43.21 at 12:11 p.m. in Frankfurt trading. The stock is down almost 15 percent over the past 12 months. Dexia shares fell 0.5 percent to 15.38 euros in Brussels.
To contact the reporter on this story: Martin Z. Braun in New York at bewilliams@bloomberg.net ; William Selway in San Francisco at wselway@bloomberg.net .
Last Updated: February 8, 2008 06:21 EST
S&P Long Term 20 yr Chart: The Scariest Chart I've Seen yet.
#msg-26607766
Courtesy QuickTrade
Fed.(2)1day RP + 4.25B [net add +0.75B ]
Fed.(2)1day RP + 4.25B [net add +0.75B ]
Fed. 14day RP + 7.00B [ + 2B sofar
http://www.gmtfo.com/RepoReader/OMOps.aspx
Fed. 14day RP + 7.00B [ + 2B sofar
http://www.gmtfo.com/RepoReader/OMOps.aspx
Futures (2) + World Indices
http://www.cme.com/dta/del/globex.html
http://money.cnn.com/data/premarket/
World Indices (2) Mini Charts
Updates every 60sec ~ Watch the dates!!
http://www.wwfn.com/commentary/oscharts.html
http://www.allstocks.com/markets/World_Charts/Asian_Stock_Markets/asian_stock_markets.html
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Add Abet Chichi2 (Chichi2
Hedge fund settles with NY, SEC for $40M in trading case
By MICHAEL VIRTANEN
Associated Press Writer
Advertisement
ALBANY, N.Y. (AP) -- Hedge fund Ritchie Capital has settled investigations into late trading in 2001-2003 for $40 million, New York and federal regulators and the company said Tuesday.
Under the agreement, Ritchie Multi-Strategy Global Trading Ltd. will pay $30 million of "disgorgement" and $7.44 million in interest, which will be distributed to affected mutual funds. Ritchie Capital Management LLC, the fund's investment manager, agreed to pay a $2.5 million penalty.
"This agreement ensures that wrongdoers are held responsible, appropriate reforms are adopted, securities laws are honored and long-term investors are assured a level playing field," said New York Attorney General Andrew Cuomo, whose office investigated the case along with the federal Securities and Exchange Commission. Ritchie Capital Management separately agreed to adopt reforms, he said.
The investigation showed that from 2001 through 2003, Ritchie Capital - in concert with certain broker dealers such as Trautman Wasserman, CIBC Oppenheimer, Bear Stearns and Prudential - engaged in late trading, buying and selling mutual fund shares after the 4 p.m. close of the markets, Cuomo said. The company sold mutual funds at pre-close prices based on post-close information, using a complicated model to predict how the market would react on the next trading day, he said.
The SEC said that resulted in a profit of approximately $30 million.
Cuomo said Ritchie Capital and broker-dealers concealed late trading and manipulated time-stamped trade sheets to show transactions were done before the closing.
Under the settlement, the fund and investment manager neither admitted nor denied the investigators' findings.
"We are pleased to put this matter behind us, and we will continue our other efforts to maximize value for all of our investors," Thane Ritchie, CEO of Lisle, Ill.-based Ritchie Capital, said in a prepared statement.
The SEC order also named Thane Ritchie and two employees. "This action demonstrates the Commission's willingness to take strong action against hedge fund advisers and their employees when they violate the federal securities laws," said Linda Chatman Thomsen, director of the SEC's Division of Enforcement.
© 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy.
Hedge fund settles with NY, SEC for $40M in trading case
By MICHAEL VIRTANEN
Associated Press Writer
Advertisement
ALBANY, N.Y. (AP) -- Hedge fund Ritchie Capital has settled investigations into late trading in 2001-2003 for $40 million, New York and federal regulators and the company said Tuesday.
Under the agreement, Ritchie Multi-Strategy Global Trading Ltd. will pay $30 million of "disgorgement" and $7.44 million in interest, which will be distributed to affected mutual funds. Ritchie Capital Management LLC, the fund's investment manager, agreed to pay a $2.5 million penalty.
"This agreement ensures that wrongdoers are held responsible, appropriate reforms are adopted, securities laws are honored and long-term investors are assured a level playing field," said New York Attorney General Andrew Cuomo, whose office investigated the case along with the federal Securities and Exchange Commission. Ritchie Capital Management separately agreed to adopt reforms, he said.
The investigation showed that from 2001 through 2003, Ritchie Capital - in concert with certain broker dealers such as Trautman Wasserman, CIBC Oppenheimer, Bear Stearns and Prudential - engaged in late trading, buying and selling mutual fund shares after the 4 p.m. close of the markets, Cuomo said. The company sold mutual funds at pre-close prices based on post-close information, using a complicated model to predict how the market would react on the next trading day, he said.
The SEC said that resulted in a profit of approximately $30 million.
Cuomo said Ritchie Capital and broker-dealers concealed late trading and manipulated time-stamped trade sheets to show transactions were done before the closing.
Under the settlement, the fund and investment manager neither admitted nor denied the investigators' findings.
"We are pleased to put this matter behind us, and we will continue our other efforts to maximize value for all of our investors," Thane Ritchie, CEO of Lisle, Ill.-based Ritchie Capital, said in a prepared statement.
The SEC order also named Thane Ritchie and two employees. "This action demonstrates the Commission's willingness to take strong action against hedge fund advisers and their employees when they violate the federal securities laws," said Linda Chatman Thomsen, director of the SEC's Division of Enforcement.
© 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy.
Fed. 1day RP + 5.50B [drain again -1.25B
Fed. 1day RP + 5.50B [drain again -1.25B
W@G2 QQQQ 02/06/08 for a 02/08/08 close
43.00 dr_sean
42.25 bob3
41.94 frenchee (next support level)
Fed. 1day RP + 6.75B [net Drain -11.25B
Fed. 1day RP + 6.75B [net Drain -11.25B