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MCET printing .032 now
MCET printing .032 now
MCET new high of day .
MCET new high of day .
Today Citigroup raised LEN to a buy from hold. Perhaps it's a good sign for the entire housing industry, only time will tell.
Almost.
LEN 8.45 + 1.61 Lennar Raised To Buy From Hold By Citigroup >LENLast update: 1/26/2009 7:57:28 AM(END) Dow Jones NewswiresJanuary 26, 2009 07:57 ET (12:57 GMT)
Financial Services Top Stories Of The DayLast update: 1/26/2009 10:00:00 AM
FINANCIAL SERVICES TOP STORIES
DESPITE TARP, LENDING DROPS AT BIG US BANKS
Lending at many of the U.S.'s largest banks has fallen in recent months, even after they received $148 billion in taxpayer capital that was intended to help the economy by making loans more readily available.
CREDIT AGRICOLE, SOCGEN SET UP ASSET MANAGEMENT UNIT
Credit Agricole and Societe Generale unveil plans to jointly create Europe's fourth-largest asset management business, as banks seek ways to create economies of scale and trim costs to better resist the challenging context for the financial services industry.
UK POLICE PROBE RBS FOR ALLEGED MIS-SELLING
U.K. police are "conducting inquiries" into Royal Bank of Scotland's GBP12 billion rights issue, and whether the bank fraudulently sought investors knowing it was insolvent, a U.K. paper reports.
BNP PARIBAS POSTS EURO 1.4B 4Q NET LOSS, TO SEEK STATE AID
French bank BNP Paribas says it posted a EUR1.4 billion loss in the 4Q, and now expects to post a EUR3 billion net profit for 2008, and adds it would like to participate in the second round of the French state's bank support plan.
SURVEY SHOWS US RECESSION DEEPENED AT END OF 2008
The National Association for Business Economics January survey depicts the worst business conditions since the survey began in 1982, confirming that the U.S. recession deepened in the 4Q.
GLOBAL CRISIS TO DOMINATE AT DAVOS
As business and political leaders prepare to make their yearly trek to the Swiss ski resort of Davos for the World Economic Forum, which starts on Tuesday, global capitalism is undergoing a period of self-doubt.
DESPITE TARP, LENDING DROPS AT BIG US BANKS
Lending at many of the U.S.'s largest banks has fallen in recent months, even after they received $148 billion in taxpayer capital that was intended to help the economy by making loans more readily available.
BARCLAYS TO REPORT 2008 PRETAX PROFIT ABOVE POUND 5.3B, SHARES RALLY
Shares in U.K. bank Barclays rally more than 50% after the chairman and chief executive say the bank will report "significant" pretax profits on February 9, the, adding that capital resources are "well in excess" of regulatory requirements. The rally follows nine consecutive days of decline amid fears over the prospect of further nationalization of U.K. banks.
BANKERS' FEAR OF UNEMPLOYMENT
Bankers' worst nightmare is the unemployment rate climbing toward 10%, a level at which credit losses could balloon because of high defaults among people with previously strong credit histories. Peter Eavis reports.
US TAX CASE AGAINST UBS WIDENS
UBS is under legal pressure as U.S. prosecutors expand their investigation into whether the Swiss bank helped tens of thousands of Americans avoid paying taxes, sources say.
BARCLAYS BUYS ITSELF MORE TIME
Today's open letter to shareholders should buy Barclays some time, says Simon Nixon, and after the temporary insanity of last week, the bank has a further chance to calm the market when it releases its full year results on February 9th.
BANK OF AMERICA WOES PUT PRESSURE ON CEO LEWIS
Bank of America's handling of its acquisition of troubled Merrill Lynch has put Chairman and Chief Executive Kenneth Lewis in the hot seat with irate shareholders, who are disappointed about the steep decline in the bank's stock.
MERRILL BROKERS GET PAID CASH FROM RETENTION BONUSES
Merrill Lynch brokers get a nice start to the weekend as Bank of America hands out the cash from retention bonuses it offered top producers in return for staying with the firm for the next seven years.
US REGIONAL BANKS PREPARE FOR WORST
Banks, reporting declines in quarterly profits because of souring loans, are bracing themselves for worse. Several large U.S. regional banks reporting earnings yesterday disclosed that they have become more aggressive in setting aside capital for future loan losses.
LEHMAN BROKERAGE SETTLES $690M BOTCHED TRANSFER
Barclays Capital will receive about $690 million of cash and securities in deal with Lehman's brokerage to compensate for missing assets tied to Barclays's purchase of the unit.
GEITHNER SUPPORTS EXPANDED OVERSIGHT
U.S. Treasury secretary nominee Timothy Geithner supports expanding oversight of derivatives and hedge funds, as well as expanding limits on executive compensation to all U.S. companies.
SOME WARY OF FINANCIALS DESPITE BULLISH INDICATORS
Credit-default-swap spreads on banks narrow, indicating reduced expectations those financial institutions will default on debt, while short interest in bank stocks falls dramatically, Geoffrey Rogow says, but increasingly nervous equity investors aren't swayed. (END) Dow Jones NewswiresJanuary 26, 2009 10:00 ET (15:00 GMT)
News Highlights: Top Equities Stories Of The DayLast update: 1/26/2009 10:00:00 AM
TOP STORIES
PFIZER TO BUY WYETH FOR $68B; TO CUT JOBS
Pfizer announces deal to acquire Wyeth for $68 billion as the industry leader also says 4Q net income plunged 90% on $2.3 billion in litigation charges. Pfizer CFO says drug maker plans to cut 15% of its combined work force following the acquisition, or more than 19,000 employees. Pfizer shares fall 7%, while Wyeth rises 2%.
CATERPILLAR NET DROPS 32%, TO CUT 20,000 JOBS
Heavy-machinery maker's 4Q net income falls 32% to $661 million, or $1.08 a share, on a steep drop in demand. Company projects 2009 earnings well below analysts' estimates and plans to cut 20,000 jobs, or about 18% of its work force, to reflect the lower demand. Shares drop 9%.
US STOCKS OPEN MIXED; CATERPILLAR WARNS
U.S. stocks are opening mixed as Caterpillar lowers its earnings outlook and Pfizer unveils its $68 billion acquisition of Wyeth, the biggest drug sector deal since 2000. Caterpillar also is cutting 20,000 jobs and its shares fall 7% early. Wyeth shares rise 3%, Pfizer falls 7%.
ICELANDIC GOVERNMENT RESIGNS - PM HAARDE
Icelandic Prime Minister Geir Haarde announces the immediate resignation of his government in the wake of the country's dire economic crisis. The announcement comes days after Haarde announced early elections on May 9.
THAIN SAYS MERRILL BONUS POOL DOWN 41%
John Thain says Merrill's year-end bonus poll was down 41% from a year earlier and was much less than was allowed under the merger agreement. He also says he will reimburse Bank of America for expenses related to his office renovation.
SPRINT TO CUT 8,000 JOBS BY MARCH 31
Sprint Nextel will cut about 13% of its work force on all levels of the company, as it looks to cut costs amid an industry-wide drop in demand. The provider of U.S. mobile-phone services says it's aiming to cut labor costs by $1.2 billion a year with the move.
ROHM & HAAS, DOW DEAL WON'T CLOSE BY DEADLINE
Rohm & Haas plans to pursue "all available alternatives" after saying Dow Chemical no longer plans to close its pending $15.3 billion acquisition before the Tuesday deadline. Rohm & Haas shares slide 15%; Dow shares rise 2%.
CHICAGO FED INDEX SHOWS ECONOMY MIRED IN RECESSION
U.S. economic activity remained in a deep recession at the end of last year, even as it showed modest improvement for the last three months of the year, the Chicago Fed reports, as for December alone, the national activity index falls to -3.2.
BANKRUPTCY FEARS GRIP AUTO-PARTS SUPPLIERS
Some of the U.S.'s largest auto-parts makers plan for potential bankruptcy filings, or scramble to avoid them, amid uncertainty about Washington's willingness to increase its $17.4 billion bailout plan for Detroit's auto makers.
STIMULUS PLANS PUSHED AMID GOP COMPLAINTS
Obama administration officials continue their drive to build support for economic-stimulus legislation, after the White House outlines more details of its plan to resuscitate the economy and end the deepening financial crisis.
MCDONALD'S NET DOWN 23%, SALES RISE
Fast food giant's 4Q earnings slip to $985.3 million, or 87c a share, following a year-earlier tax gain, while U.S. same-store sales rise 5%. McDonald's plans to spend $2.1 billion on 1,000 new restaurants and improve existing ones. Shares slip 1%.
HALLIBURTON NET OFF 32% AMID KBR CHARGE
Oilfield-services firm's 4Q net income tumbles to $468 million, or 53c a share, from $690 million, or 75c a share, a year earlier, amid a charge related to its former subsidiary KBR, although sales and margins improved. Shares rise 6%.
HOME DEPOT TO SHUTTER EXPO, CUT 7,000 JOBS
Home Depot says it will close its Expo home-design business and cut 7,000 jobs, but says the retail woes of the past several months won't make it miss its fiscal-year forecast. The company will cut the officer ranks by 10%. Shares up 5%.
EATON NET DOWN 36% ON MARGIN DROP
Manufacturer posts a 36% drop in 4Q net income to $163 million, or 98c a share, down from $256 million, or $1.71 a share, a year earlier, on slumping margins and falling demand as it predicts 1Q results well below Wall Street's expectations.
S&P SAYS GE RESULTS DON'T CHANGE RATING VIEW
Ratings service says GE's 4Q results don't change its ratings view on the conglomerate. But S&P does note GE Capital will likely suffer more than it thought last month, and S&P takes the first step toward potentially lowering GE's AAA rating.
SMURFIT-STONE CONTAINER FILES FOR CHAPTER 11
Cardboard box maker, which has about $316 million of net debt payments coming due this year, files for Chapter 11 bankruptcy protection, as it struggles to find the free cash to meet its obligations amid sliding sales.
CHRYSLER SAYS IT CAN BE VIABLE BY SPRING
Auto maker says it can become stable even if the U.S. auto market slumps deeper than last year's lows, due to deep cost-cutting and a loosening of credit markets. It also asks dealers to accept a small reduction in profit margins and to resist the urge to slash orders for new vehicles.
TECH GIANTS ADD WAGE FREEZES TO COST CUTS
Some of the tech sector's biggest names, like Intel, Dell and Adobe, have quietly curtailed pay raises despite risks to employee morale, as they look for additional ways to weather the deteriorating economy,
BARCLAYS TO REPORT 2008 PRETAX PROFIT ABOVE £5.3B, SHARES RALLY
Shares in U.K. bank Barclays rally more than 50% after the chairman and chief executive say the bank will report "significant" pretax profits on February 9, the, adding that capital resources are "well in excess" of regulatory requirements. The rally follows nine consecutive days of decline amid fears over the prospect of further nationalization of U.K. banks.
OIL LOWER ON ECONOMIC WOES
Crude prices are under downward pressure as participants focus on the deteriorating economic conditions, which have sapped any confidence away from buyers, market participants say.
KIMBERLY-CLARK NET FALLS 8.1%
Kimberly-Clark's 4Q net income dropped 8.1% to $419 million, or $1.01 a share, from $456 million, or $1.07 a share, a year earlier, amid falling volumes and the stronger dollar. Company now projects 2009 results below analysts' expectations.
TYSON SWINGS TO LOSS ON SLUMPING MARGINS
Tyson posts a loss of $112 million, or 30c a share, on slumping margins and a 2.7% drop in volume as the company says its struggling chicken segment has begun to improve. Revenue increases 0.7% to $6.52 billion. Analysts expected a loss of 23c a share.
IRAQ SAYS US TROOPS COULD LEAVE BEFORE DEADLINE
Iraqi Prime Minister Nouri al-Maliki says he is determined the country's armed forces can be rebuilt quickly enough to allow U.S. troops to be withdrawn earlier than agreed. The U.S. military is slated to withdraw combat troops from Iraq by the end of 2011.
======= DOW JONES NEWSWIRES ANALYSIS AND COMMENTARIES =======
TECH VIEW
Tech Stocks May Be Entering Bull Market If investors live buy the rule "sell on good news, buy on bad news," then this market is one big opportunity to buy, John Dvorak writes, that is, if they have any money left.
HEARD ON THE STREET
Barclays Buys Itself More Time Today's open letter to shareholders should buy Barclays some time, says Simon Nixon, and after the temporary insanity of last week, the bank has a further chance to calm the market when it releases its full year results on February 9th.
============ U.S. MARKETS ACTION ===========
DJIA up 36.72 points to 8113.33
NASDAQ up 18.01 points to 1495.53
S&P 500 up 9.27 points to 841.37
10-year T-note 109 21/32 at 2.624 yield dn .025
NYMEX Crude up $0.88 at $47.31/bbl
Euro/Dollar up 0.0163 at 1.3127
(END) Dow Jones NewswiresJanuary 26, 2009 10:00 ET (15:00 GMT)
US Dec Existing Home Sales Up 6.5% To 4.74 Mln RateLast update: 1/26/2009 9:59:21 AM
============================================================
Dec Existing Home Sales Dec Nov ! Consensus: !
Total Sales: 4.74M 4.45Mr ! 4.40M !
% Change: +6.5% -9.4%r ! Actual: !
Months Supply: 9.3 11.2 ! 4.74M !
============================================================
By Jeff Bater
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--Existing-home sales rose in December as buyers took advantage of discounted prices in distressed housing markets. Home resales rose to a 4.74 million annual rate, a 6.5% increase from November's revised 4.45 million annual pace, the National Association of Realtors said Monday. November originally was seen down by 8.6% to 4.49 million. NAR economist Lawrence Yun said sales in distressed markets were very high amid foreclosures; of all sales in December, about 45% were distress sales at discounted prices. The median home price was $175,400 in December, down 15.3% from $207,000 in December 2007. The median price in November this year was $180,300. The 15.3% drop was the largest on record, the NAR said. "It appears some buyers are taking advantage of much lower home prices," Yun said, adding the market is far from balanced as buyers hold an edge over sellers. The December resales level of 4.74 million reported Monday by NAR was above Wall Street expectations of a 4.40 million sales rate for previously owned homes. For all of 2008, sales totaled 4.91 million, down 13.1% from 5.65 million in 2007. The average 30-year mortgage rate was 5.29% in December, down from 6.09% in November, according to Freddie Mac (FRE). While a drop in mortgage rates is an incentive for demand, the housing industry is floundering as big challenges lurk. The labor market, for one thing, is shrinking - 2.6 million jobs were lost last year. People are afraid to make major purchases, like homes. Also, home prices are falling, discouraging buying by those waiting for a better deal. And mortgage financing is harder to secure than during housing's boom years. U.S. sales of new homes dropped in November by 2.9% to 407,000, the latest government data showed. Year over year, sales were down 35%. High inventories of unsold homes virtually guarantee lower prices and sales down the road. Data on December will be released this week. Monday's data on the existing-home market showed inventories fell 11.7% at the end of December to 3.68 million available for sale, which represented a 9.3-month supply at the current sales pace. There was a 11.2-month supply at the end of November. Regionally, sales rose 4.0% in the Midwest, 7.4% in the South, and 13.6% in the West. Sales fell 1.4% in the Northeast.
-By Jeff Bater, Dow Jones Newswires; 202 862 9249; jeff.bater@dowjones.com
(END) Dow Jones NewswiresJanuary 26, 2009 09:59 ET (14:59 GMT)
US Dec Existing Home Sales Up 6.5% To 4.74 Mln RateLast update: 1/26/2009 9:59:21 AM
============================================================
Dec Existing Home Sales Dec Nov ! Consensus: !
Total Sales: 4.74M 4.45Mr ! 4.40M !
% Change: +6.5% -9.4%r ! Actual: !
Months Supply: 9.3 11.2 ! 4.74M !
============================================================
By Jeff Bater
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--Existing-home sales rose in December as buyers took advantage of discounted prices in distressed housing markets. Home resales rose to a 4.74 million annual rate, a 6.5% increase from November's revised 4.45 million annual pace, the National Association of Realtors said Monday. November originally was seen down by 8.6% to 4.49 million. NAR economist Lawrence Yun said sales in distressed markets were very high amid foreclosures; of all sales in December, about 45% were distress sales at discounted prices. The median home price was $175,400 in December, down 15.3% from $207,000 in December 2007. The median price in November this year was $180,300. The 15.3% drop was the largest on record, the NAR said. "It appears some buyers are taking advantage of much lower home prices," Yun said, adding the market is far from balanced as buyers hold an edge over sellers. The December resales level of 4.74 million reported Monday by NAR was above Wall Street expectations of a 4.40 million sales rate for previously owned homes. For all of 2008, sales totaled 4.91 million, down 13.1% from 5.65 million in 2007. The average 30-year mortgage rate was 5.29% in December, down from 6.09% in November, according to Freddie Mac (FRE). While a drop in mortgage rates is an incentive for demand, the housing industry is floundering as big challenges lurk. The labor market, for one thing, is shrinking - 2.6 million jobs were lost last year. People are afraid to make major purchases, like homes. Also, home prices are falling, discouraging buying by those waiting for a better deal. And mortgage financing is harder to secure than during housing's boom years. U.S. sales of new homes dropped in November by 2.9% to 407,000, the latest government data showed. Year over year, sales were down 35%. High inventories of unsold homes virtually guarantee lower prices and sales down the road. Data on December will be released this week. Monday's data on the existing-home market showed inventories fell 11.7% at the end of December to 3.68 million available for sale, which represented a 9.3-month supply at the current sales pace. There was a 11.2-month supply at the end of November. Regionally, sales rose 4.0% in the Midwest, 7.4% in the South, and 13.6% in the West. Sales fell 1.4% in the Northeast.
-By Jeff Bater, Dow Jones Newswires; 202 862 9249; jeff.bater@dowjones.com
(END) Dow Jones NewswiresJanuary 26, 2009 09:59 ET (14:59 GMT)
Anytime YAK.
& it's only Monday.
STEM 2.83 + .30
Yes, it certainly is. There's really no need to spend excessive money on training videos/dvd's when people are willing to help you for FREE.
Highlights :
--> HIGHLIGHTS ...
STEM 2.77 + .24
MCET .019 x .024 gapping
MCET .019 x .024 gapping
I actually enjoy listening to d seven and his videos. It's a FREE service, unlike a some who provide services and try to sell charting DVD's at ridiculous prices. Why spend the money on knowledge that you can get for FREE? You can also discuss charting videos, chart patterns and trends with traders here on investorshub. It's a free investment and the only cost to a person is their time.
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QID SDS & the DXD "hedging vehicles" in a bear market.
Here's a market prediction from last year , Jan 2008 .. he was so "on the money"
Oil, gold, alternative energy, I like all of them.
Fed expected to keep rates at record lows
Fed expected to keep rates at record lows, mull options to revive moribund economy
Jeannine Aversa, AP Economics Writer
Sunday January 25, 2009, 2:13 pm EST
WASHINGTON (AP) -- With the country stuck in a painful recession, the Federal Reserve is widely expected to keep its key interest rate at an all-time low this week and examine other unconventional ways to lift the economy.
Unlike other downturns, Fed Chairman Ben Bernanke and his colleagues are battling a three-headed economic monster: crises in the housing, credit and financial markets that -- taken together -- haven't been seen since the 1930s.
While Bernanke has pledged to do all he can to provide relief, President Barack Obama and Congress are racing ahead to enact an $825 billion package of increased government spending and tax cuts to revive the economy.
Against that backdrop, the Fed is all but certain to hold rates near zero and may offer greater insights into what other steps might be taken to ease the problems. The Federal Open Market Committee -- the central bank's main policymaking group -- opens a two-day meeting Tuesday to assess economic and financial conditions, review the effectiveness of programs already in place to deal with the trio of crises and examine new relief options going forward.
At its previous meeting in December, the Fed took the unprecedented action of slashing its key rate from 1 percent to a new, targeted range of between zero and 0.25 percent. Economists predict the Fed will leave rates at that record-low range on Wednesday and probably through the rest of this year in a bid to help brace the economy.
"Fed policymakers don't want to let up until they are absolutely sure an economic recovery has taken hold," said Bill Cheney, chief economist at John Hancock Financial Services. "Overall, their tone is going to be pretty pessimistic. The economy is still spiraling down and all the negative forces are feeding on each other."
Economists are divided on whether the Fed might announce some new actions Wednesday to deal with the crises.
One option being considered is expanding a program aimed at bolstering the availability of consumer loans.
Under the program, which is expected to start in February, up to $200 billion will be made available to spur auto, student and credit card loans as well as loans to small businesses. To do that, the Fed will buy securities backed by those different types of consumer debt. The Fed also hopes that action will lower rates on those loans.
"If the program is successful, (it) could be increased in size or expanded in scope to provide financing for additional types of securities, such as commercial mortgage-backed securities, for which the markets are currently distressed," Donald Kohn, the Fed's No. 2 official, told Congress earlier this month.
Another option is for the Fed to buy longer-term Treasury securities.
"In determining whether to proceed with such purchases, the committee will focus on their potential to improve conditions in private credit markets, such as mortgage markets," Bernanke said in a Jan. 13 speech in London.
Since the credit and financial crises erupted in the summer of 2007, the Fed has rolled out one radical program after another.
It is buying up mounds of companies' short-term debt called commercial paper. It is making cash loans to banks. And at the beginning of this year, it started buying mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae to help bolster the crippled housing market.
Because of all these programs, the Fed's balance sheet has mushroomed to $2.05 trillion, from just under $900 billion in September. Bernanke recently described this policy approach as "credit easing."
Even as the Fed wants to use all tools available to battle the crisis, it is mindful that there are dangers: the potential to put ever-more taxpayers' dollars at risk; sow the seeds of inflation in the future; and encourage "moral hazard," where companies feel more comfortable making high-stakes gambles because the government will rescue them.
"Since we are in uncharted territory, I believe we must proceed with caution," Charles Plosser, president of the Federal Reserve Bank of Philadelphia, said in a speech earlier this month.
On a separate track, the Treasury Department is overseeing a much-criticized $700 billion financial bailout program that is likely to be retooled by the new administration.
The recession, now in its second year, is dragging on and could turn out to be the longest since World War II.
The nation's unemployment rate bolted to a 16-year high of 7.2 percent in December and could hit 10 percent or higher at the end of this year or early next year. A staggering 2.6 million jobs were lost last year, the most since 1945.
With jobs disappearing, home values tanking, foreclosures soaring and nest eggs shriveling, consumers have sharply cut spending. That's played a big role in causing the economy's backslide. So has the collapse in housing, which has ricocheted through the economy.
Many economists predict the economy contracted at a pace of 5.4 percent in the final three months of last year. The government releases the gross domestic product report Friday. If they are correct, that would mark the worst performance since a drop of 6.4 percent in the first quarter of 1982, when the country was suffering through a severe recession. The economy is still contracting now -- at a pace of around 4 percent, according to some projections.
Robert Dye, economist at PNC Financial Services, described the economy as in a "free fall."
Meanwhile, consumer prices have been falling. At first that seems like a blessing for shoppers, but it if spreads to wages and already stricken prices for homes, stocks and other things for a long time, it could wreak more havoc on the economy. The country's last serious bout of "deflation" was in the 1930s. Holding rates at record lows would help fend off any deflation risks.
All in all, the picture is "really grim," said Michael Feroli, economist at JPMorgan Economics.
Fed expected to keep rates at record lows
Fed expected to keep rates at record lows, mull options to revive moribund economy
Jeannine Aversa, AP Economics Writer
Sunday January 25, 2009, 2:13 pm EST
WASHINGTON (AP) -- With the country stuck in a painful recession, the Federal Reserve is widely expected to keep its key interest rate at an all-time low this week and examine other unconventional ways to lift the economy.
Unlike other downturns, Fed Chairman Ben Bernanke and his colleagues are battling a three-headed economic monster: crises in the housing, credit and financial markets that -- taken together -- haven't been seen since the 1930s.
While Bernanke has pledged to do all he can to provide relief, President Barack Obama and Congress are racing ahead to enact an $825 billion package of increased government spending and tax cuts to revive the economy.
Against that backdrop, the Fed is all but certain to hold rates near zero and may offer greater insights into what other steps might be taken to ease the problems. The Federal Open Market Committee -- the central bank's main policymaking group -- opens a two-day meeting Tuesday to assess economic and financial conditions, review the effectiveness of programs already in place to deal with the trio of crises and examine new relief options going forward.
At its previous meeting in December, the Fed took the unprecedented action of slashing its key rate from 1 percent to a new, targeted range of between zero and 0.25 percent. Economists predict the Fed will leave rates at that record-low range on Wednesday and probably through the rest of this year in a bid to help brace the economy.
"Fed policymakers don't want to let up until they are absolutely sure an economic recovery has taken hold," said Bill Cheney, chief economist at John Hancock Financial Services. "Overall, their tone is going to be pretty pessimistic. The economy is still spiraling down and all the negative forces are feeding on each other."
Economists are divided on whether the Fed might announce some new actions Wednesday to deal with the crises.
One option being considered is expanding a program aimed at bolstering the availability of consumer loans.
Under the program, which is expected to start in February, up to $200 billion will be made available to spur auto, student and credit card loans as well as loans to small businesses. To do that, the Fed will buy securities backed by those different types of consumer debt. The Fed also hopes that action will lower rates on those loans.
"If the program is successful, (it) could be increased in size or expanded in scope to provide financing for additional types of securities, such as commercial mortgage-backed securities, for which the markets are currently distressed," Donald Kohn, the Fed's No. 2 official, told Congress earlier this month.
Another option is for the Fed to buy longer-term Treasury securities.
"In determining whether to proceed with such purchases, the committee will focus on their potential to improve conditions in private credit markets, such as mortgage markets," Bernanke said in a Jan. 13 speech in London.
Since the credit and financial crises erupted in the summer of 2007, the Fed has rolled out one radical program after another.
It is buying up mounds of companies' short-term debt called commercial paper. It is making cash loans to banks. And at the beginning of this year, it started buying mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae to help bolster the crippled housing market.
Because of all these programs, the Fed's balance sheet has mushroomed to $2.05 trillion, from just under $900 billion in September. Bernanke recently described this policy approach as "credit easing."
Even as the Fed wants to use all tools available to battle the crisis, it is mindful that there are dangers: the potential to put ever-more taxpayers' dollars at risk; sow the seeds of inflation in the future; and encourage "moral hazard," where companies feel more comfortable making high-stakes gambles because the government will rescue them.
"Since we are in uncharted territory, I believe we must proceed with caution," Charles Plosser, president of the Federal Reserve Bank of Philadelphia, said in a speech earlier this month.
On a separate track, the Treasury Department is overseeing a much-criticized $700 billion financial bailout program that is likely to be retooled by the new administration.
The recession, now in its second year, is dragging on and could turn out to be the longest since World War II.
The nation's unemployment rate bolted to a 16-year high of 7.2 percent in December and could hit 10 percent or higher at the end of this year or early next year. A staggering 2.6 million jobs were lost last year, the most since 1945.
With jobs disappearing, home values tanking, foreclosures soaring and nest eggs shriveling, consumers have sharply cut spending. That's played a big role in causing the economy's backslide. So has the collapse in housing, which has ricocheted through the economy.
Many economists predict the economy contracted at a pace of 5.4 percent in the final three months of last year. The government releases the gross domestic product report Friday. If they are correct, that would mark the worst performance since a drop of 6.4 percent in the first quarter of 1982, when the country was suffering through a severe recession. The economy is still contracting now -- at a pace of around 4 percent, according to some projections.
Robert Dye, economist at PNC Financial Services, described the economy as in a "free fall."
Meanwhile, consumer prices have been falling. At first that seems like a blessing for shoppers, but it if spreads to wages and already stricken prices for homes, stocks and other things for a long time, it could wreak more havoc on the economy. The country's last serious bout of "deflation" was in the 1930s. Holding rates at record lows would help fend off any deflation risks.
All in all, the picture is "really grim," said Michael Feroli, economist at JPMorgan Economics.
RSI only 46.26 and accumulation / distribution shows minimal dilution and steady accumulation.
Now is a good time to buy in my opinion and the housing market should turn up by mid year.
lol
Low float Falcon Ridge, approx 22 million ...
Low float Falcon Ridge, approx 22 million ...
Silver Falcon could see a move towards the .08 mark again,
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35066836
That's sensible. I hope that the man of the house is doing well.
Silver Falcon ...
The American Reinvestment and Recovery Plan – By the Numbers
http://www.whitehouse.gov/assets/Documents/recovery_plan_metrics_report.pdf
The American Reinvestment and Recovery Plan – By the Numbers
http://www.whitehouse.gov/assets/Documents/recovery_plan_metrics_report.pdf
Obama touts aid plan's impact on average Americans
Obama tells Americans what's in his economic aid plan for them, then meets economic advisers
Philip Elliott, Associated Press Writer
Saturday January 24, 2009, 9:20 pm EST
WASHINGTON (AP) -- President Barack Obama met with his economic advisers Saturday after he asked Americans to support his economic package as a way to better schools, lower electricity bills and health coverage for millions who lose insurance.
The two-hour session in the Roosevelt Room focused the proposed $825 billion economic stimulus package that Congress is considering. The group also discussed the upcoming federal budget, Obama's first chance to shape the country's spending amid a recession that lost 2.6 million jobs last year, the most in a single year since World War II.
"Our economy could fall $1 trillion short of its full capacity, which translates into more than $12,000 in lost income for a family of four. And we could lose a generation of potential, as more young Americans are forced to forgo college dreams or the chance to train for the jobs of the future," Obama said in a five-minute address released Saturday morning by radio and the Internet.
"In short, if we do not act boldly and swiftly, a bad situation could become dramatically worse."
It was the latest appeal from the new president for a massive spending bill designed to inject almost $1 trillion into the economy and fulfill campaign pledges. Obama spent much of last week wooing reluctant legislators -- many from his own Democratic Party -- and weighing whether there's a need for a second economic package, which aides refused to rule out.
That sequel would be designed to assuage Democratic lawmakers who fret that too little of the money is going toward public works projects that would employ their constituents. Others aides are trying to work with Republican leaders to sustain the current bill's bipartisan flavor; the president planned to visit to Capitol Hill on Tuesday to meet privately with GOP lawmakers.
House Republican leader John Boehner of Ohio said his party would continue to push for immediate tax cuts -- "not slow-moving government spending programs" -- in the weekly GOP address.
"We let families, entrepreneurs, small businesses and the self-employed keep more of what they earn to encourage investment and create millions of new private-sector jobs," he said.
Republicans also proposed a tax credit for home purchases, an end of taxation of unemployment benefits and tax incentives for small businesses to invest in new equipment and hire new employees. Boehner was scheduled to make the case for the GOP plan on Sunday morning talk shows; Vice President Joe Biden and Obama economic adviser Larry Summers also planned interviews that morning.
"We cannot borrow and spend our way back to prosperity," Boehner said.
Both parties, though, agree something has to be done.
Manufacturing is at a 28-year low and even Obama's economists say unemployment could top 10 percent before the recession ends. One in 10 homeowners is at risk of foreclosure and the dollar continues its slide in value. On Friday, 1st Centennial Bank of Redlands, Calif., became the third U.S. bank to fail this year.
That harsh reality has dominated Obama's first days in office.
In addition to the president's speech, Obama aides released a report Saturday that outlined exactly what people could expect if Congress supported his proposed economic legislation.
Many of the ideas, such as shifting to electronic medical records and investing in preventive health care, were familiar from Obama's two-year campaign for the presidency. Other parts added specifics.
Obama's recovery package aims to:
--Double within three years the amount of energy that could be produced from renewable resources. That is an ambitious goal, given the 30 years it took to reach current levels. Advisers say that could power 6 million households.
--Upgrade 10,000 schools and improve learning for about 5 million students.
--Save $2 billion a year by making federal buildings energy efficient.
--Triple the number of undergraduate and graduate fellowships in science.
--Tighten security at 90 major ports.
The plan would spend at least 75 percent of the total cost -- or more than $600 billion -- within the first 18 months, either through bricks-and-shovels projects favored by Democrats or tax cuts that Republicans have pushed.
There is heavy emphasis on public works projects, which have lagged as state budgets contracted. Governors have lobbied Obama to help them patch holes in their budgets, drained by sinking tax revenues and increased need for public assistance such as Medicaid and children's health insurance. Obama's plan would increase the federal portion of those programs so no state would have to cut any of the 20 million children whose eligibility is now at risk.
Obama video: http://www.whitehouse.gov
Obama economics report: http://tinyurl.com/db83d8
Iraq's oil exports raise in December
Iraq reports increase in oil exports in December, but revenues drop
Sunday January 25, 2009, 7:21 am EST
BAGDHAD (AP) -- The Iraqi Oil Ministry says the country's oil exports in December reached 56.2 million barrels.
It says that's a 3.4 million barrel increase from previous month although revenues dropped due to the slide in global oil prices.
Sunday's statement shows revenues fell to about $1.943 billion from $2.299 billion in November.
Iraq's oil was sold at an average price of about $34.57 per barrel, down from the previous month price of $43.54 a barrel. It was purchased by 23 international oil companies.
The statement says 43.4 million barrels were exported through the Persian Gulf, while 12.8 million barrels were exported via Turkey's port of Ceyhan.
Iraq has the world's third largest oil reserves with 115 billion barrels
Credit Suisse compensates its Lehman investors
Credit Suisse says it pays $86.7M compensation to its investors in Lehman Brothers
Sunday January 25, 2009, 7:20 am EST
ZURICH, Switzerland (AP) -- Credit Suisse Group said Sunday it has paid around 100 million Swiss francs ($86.7 million) in compensation to 2,000 clients who lost money in collapsed U.S. investment bank Lehman Brothers.
Most of the beneficiaries received the money in the third quarter, said spokesman Jan Vonder Muehll, confirming reports by the weeklies NZZ am Sonntag and Sonntagszeitung.
Only 11 clients declined to accept the money, Vonder Muehll said.
Switzerland's second biggest bank compensated clients who had half or more of their investments with Lehman Brothers and whose total investments were less than 500,000 francs ($433,700) he said.
He declined to say how the level of compensation was worked out.
"We've looked at each case individually," he told The AP.
Lehman -- once the fourth-biggest U.S. investment bank -- filed the biggest bankruptcy in U.S. history in September.