US - Economic Data & News 01 (May 08 - Jul 08)

[blid2def]

Actually I wonder how much "offshored" work has now flown back to the US as a result of the shrunken dollar.

[kennynah]

easy....one check is for you to ask your ex-colleagues....see how much india office revenue is slowing...

[millionairemind]

When the good times were here that last time around and it will come again... remember to save lots... don't splurge on a Ferrari or a high end condo.. least one ends up on the streets like this guy below

Good times don't last forever.. neither do bad times...


Sandwich board is new tool in job search

Joshua Persky stands with his sandwich board advertisement in New York, July 10, 2008. Out of work for six months and desperate to find a job, one innovative New Yorker donned his new power suit -- a sandwich board -- and hit the streets of Manhattan to lure potential employers. Picture taken July 10, 2008.
REUTERS/Shannon Stapleton

[millionairemind]

July 14, 2008, 8.13 am (Singapore time)

US SEC expands rumour crackdown

WASHINGTON - US securities regulators are boosting efforts to stop the spread of false rumours that threaten financial institutions, after a week that saw steep slides in the shares of Fannie Mae, Freddie Mac and Lehman Brothers.
In an unusual weekend statement, the US Securities and Exchange Commission warned on Sunday that regulators would immediately examine whether broker-dealers and investment advisers have controls in place to prevent market manipulation.

Examiners from the SEC, New York Stock Exchange Regulation and the broker-dealer watchdog, the Financial Industry Regulatory Authority, will see if the controls are designed to prevent the intentional creation or spreading of false information.

Securities officials said the timing of the announcement was aimed at getting word of the crackdown out before Asian markets open on Monday, the first to trade globally.

'It's to prevent rumours that threaten commercial banks, investment banks and government-sponsored enterprises (Fannie Mae, Freddie Mac)' said one securities official on condition he was not named.

Later on Sunday, the US Treasury Department and Federal Reserve unveiled sweeping measures to support Fannie Mae and Freddie Mac, offering loans and possible equity purchases.

The SEC said the rumour policy reviews are in addition to enforcement investigations already underway into alleged intentional manipulation of securities prices through rumour-mongering and abusive short selling.

The examinations 'are aimed at ensuring that investors continue to get reliable, accurate information about public companies in the marketplace,' SEC Chairman Christopher Cox said in a statement.

The Securities Industry and Financial Markets Association applauded the move and said it supports the 'vigorous enforcement of existing regulation to ensure the integrity of our markets.' Jay Brown, a business professor at Sturm College of Law, said the SEC announcement was a way of saying to issuers: 'We feel your pain and here is how we are going to handle it.'

There has been increasing criticism of rumours, speculators and short sellers in recent months as share prices have declined and commodity prices, particularly oil, have soared.

Short sellers borrow shares they consider overvalued and sell them. If the price drops, they repurchase the shares, return them and pocket the difference.

While short sellers are often criticised by companies whose stocks they target and by investors betting the same shares will rise, short sellers say they are essential to the market by preventing stocks from being overvalued.

However, spreading false rumours in connection with either the purchase or sale of a security is illegal.

'The timing of the announcement seems to suggest that regulators have specific evidence that misinformation was making the rounds about Fannie, Freddie, and or Lehman Brothers last week,' said options strategist Frederic Ruffy with WhatsTrading.com.

In April, the SEC settled with a Wall Street trader accused of intentionally spreading false rumours about a new lower price of a deal to buy Alliance Data Systems Corp while selling the stock short. The deal was never consummated.

The SEC accused Paul Berliner, formerly associated with Schottenfeld Group LLC, of using instant messages to 31 traders at brokerage firms and hedge funds to spread the rumours.

Mr Berliner neither admitted or denied the SEC's accusations in agreeing to pay US$156,000 to settle the case.

Fears that mortgage finance companies Fannie Mae and Freddie Mac might have trouble borrowing and may not have sufficient capital to cover rising mortgage delinquencies have pummelled their stocks.

Rumours have dogged Lehman Brothers for months. Last Thursday its stock dropped on rumours that some of its key customers had pulled business away from the investment bank.

Late in June, its stock fell on rumours that it was going to be bought out at a below market price. Both rumours could not be substantiated. The SEC is investigating whether false information is being spread about Lehman, one source has said.

Rep Spencer Bachus, a Republican from Alabama who has said the collapse of investment bank Bear Stearns in March raised questions about information spread by short sellers, welcomed the SEC announcement. -- REUTERS

[blid2def]

Apt time to bring this up again:

The Mortgage Lender Implode-O-Meter: http://ml-implode.com/

EDIT: ... and you can now read the syndicated feeds here: viewtopic.php?f=49&t=898#p12139

[kennynah]

for those who are adamant on deep sea diving for abalones..

you will be pleased with this piece of potential garbage

*************
Housing: Barron's Calls a Bottom
by: SA Editor Eli Hoffmann posted on: July 13, 2008
Barron's magazine's cover story boldly calls a bottom to the ravaged housing market.


Chip Case (of S&P/Case-Shiller fame), whose knowledge of the housing market goes back decades and is based on the voluminous collection of data, is among those who think home prices may be nearing a bottom. Case notes, among other things, that new housing starts fell to 975,000 in April from a peak rate of 2.27 million in January 2006, and that three declines of similar magnitude -- from more than two million to less than one million -- have occurred in the past 35 years. "Every time this has happened before, housing-market activity has rebounded within a quarter and caught experts by surprise."

Author Jonathan Laing does a convincing job gathering data to support his argument that a housing bottom is either in, or in the process of forming. A sampling:

* Total inventories of unsold existing homes is down to 10.8 months from 11.2 months in April.
* Despite last month's biggest ever 15.3% home price drop, eight of the 20 markets covered saw price increases - up from just two a month prior.
* Home price indexes are skewed by steep drops in the value of subprime properties - which account for only 10% of the all U.S. housing.
* A $300B congressional effort to allow FHA support of troubled mortgages, and/or a government takeover of Fannie (FNM) and Freddie (FRE), would ease lack-of-credit concerns.
* Home sales of 5M/year are the same as a decade ago - yet the population has grown by 25M and the job market by 10M since then.
* The much-feared hump in adjustable-rate-mortgage resets has been blunted by early mortgage defaults.
* Early- and late-stage delinquencies on subprime properties have been falling for the past 6-8 months.

In hindsight, the housing bust hasn't been nearly as calamitous as depicted in the media, or as Wall Street's woes might suggest. Yes, people have lost their homes, but more than a few were mendacious mortgage applicants and mere speculators, who eagerly sought out 100% margin loans, only to fold just as quickly when prices turned against them.

It is important to remember, as well, that even after a steep drop in the S&P/Case-Shiller Indices, long-term buyers in the top 20 U.S. metro markets have seen their properties appreciate by 70% since 2000. Home prices often take five to 10 years to recover fully from severe declines such as this. But at least the available data suggest the scary dive in home prices soon will be over.

[kennynah]

15jul08 - 830pm +8gmt

US PPI (jun)up 1.8% Core Prices up 0.2%

Retail sales (Jun) up 0.1%, ex-auto up 0.8%

[kennynah]

GR/HH :

was it at this thread that we said the chiobus at cnbc is one reason why we are watching cnbc ?? and then we were referring to the "broad"casters..

ih yeah, i was referring to becky "quickie"....old meh? cannot be any much more older than erin.... send her an email and ask for stats....hahaha..

[kennynah]

New York State Manufacturing Worsens Less than Anticipated In July
7/15/2008 9:29 AM ET

(RTTNews) - Manufacturing activity in New York State worsened for a third consecutive month in July, according to the latest Empire State Manufacturing Survey. However, the business conditions index fell much less than forecast by analysts, coming in at -4.9 versus -8.68 in June.

The new orders and shipments indexes both rose into positive territory, while the unfilled orders index was negative and drifted downward. The inventories index fell to its lowest level in a year. The prices paid and prices received indexes both reached record highs, and the employment indexes dipped below zero.

[kennynah]

cowboy likes us to believe the following...

**********
Bush Says Banking System Basically Sound
7/15/2008 10:56 AM ET

(RTTNews) - Fannie Mae (FNM) and Freddie Mac (FRE) should "remain shareholder-owned companies," President George W. Bush said Tuesday. He added that the lending window that has been offered to the organizations is "temporary" and should be used "only if needed."

The President dismissed concerns about the U.S. banking system, saying "I think the system basically is sound, I truly do."

Concerns about the strength of U.S. banking system in light of the failure if IndyMac has led to a run on financial stocks and concerns from consumers about the safety of their deposits. Bush assured consumers that their deposits are ensured by the Federal Government up to $100,000.

The President also urged Congress to lift their ban on offshore drilling. He lifted the executive ban Monday, placing pressure on the Democratically-controlled Congress to remove their ban. However, House Speaker Nancy Pelosi has urged Bush to tap into the strategic petroleum reserve, an option he has continually refused to entertain.