If a man is offered a fact which goes against his instincts, he will scrutinize it closely, and unless the evidence is overwhelming, he will refuse to believe it. If, on the other hand, he is offered something which affords a reason for acting in accordance to his instincts, he will accept it even on the slightest evidence. The origin of myths is explained in this way. Bertrand Russell
Men fear thought as they fear nothing else on earth -- more than ruin -- more even than death.... Thought is subversive and revolutionary, destructive and terrible, thought is merciless to privilege, established institutions, and comfortable habit. Thought looks into the pit of hell and is not afraid. Thought is great and swift and free, the light of the world, and the chief glory of man. Bertrand Russell On Oct 3, 5:01 am, VT Sean Lewis <[EMAIL PROTECTED]> wrote: > TRUTH! > > On Oct 2, 2:59 pm, Frank <[EMAIL PROTECTED]> wrote: > > > U.S. Stocks Drop on Economic Data, Rising Bank Rates; GE Falls > > By Lynn Thomasson > > > Oct. 2 (Bloomberg) -- U.S. stocks dropped for a second day as a jump > > in borrowing costs and reports showing a worsening economy spurred > > concern that the government's $700 billion bank bailout plan won't be > > enough to stimulate growth. > > Caterpillar Inc., Alcoa Inc. and Deere & Co. tumbled more than 5 > > percent as three-month bank lending rates climbed to the highest since > > January, while the government said factory orders declined more than > > forecast. General Electric Co. lost as much as 10 percent after > > selling $12.2 billion in shares at a discount. Monsanto Co. slid as > > much as 21 percent, its steepest intraday loss since going public in > > 2000, after Merrill Lynch & Co. said slumping demand will hurt farm > > companies. > > ``If banks aren't willing to lend money to a bank, are they going to > > be willing to lend to an average person? No, they're not,'' said Frank > > Ingarra, money manager at Hennessy Advisors Inc., which oversees $1.1 > > billion in Novato, California. ``We could be at the start of a pretty > > bad recession.'' > > The Standard & Poor's 500 Index slid 34.69, or 3 percent, to 1,126.37 > > at 1:33 p.m. in New York. The Dow Jones Industrial Average lost > > 270.09, or 2.5 percent, to 10,560.98. The Nasdaq Composite Index > > slipped 3.3 percent to 2,001.34. Ten stocks retreated for each that > > rose on the New York Stock Exchange. > > > `Flat on the Floor' > > > Billionaire Warren Buffett, the world's preeminent stock picker, > > described the world's largest economy yesterday as being ``flat on the > > floor'' after a cardiac arrest. > > Caterpillar, the biggest maker of earthmoving equipment, lost $3.56 to > > $53.38. Deere, the largest producer of tractors, declined 11 percent > > to $41.15. > > `Liquidity Crisis' > > The market for commercial paper plummeted the most on record as banks > > and insurers were unable to find buyers for the short- term debt. > > Commercial paper outstanding tumbled $94.9 billion, or 5.6 percent, to > > a seasonally adjusted three-year low of $1.6 trillion for the week > > ended Oct. 1, the Federal Reserve said. Financial paper accounted for > > most of the decline. > > ``There's a liquidity crisis going on that's putting investors on > > edge,'' said Alan Gayle, the Richmond, Virginia- based senior > > investment strategist at Ridgeworth Investments, which oversees about > > $70 billion. ``Liquidity is like oxygen. Lack of it can cause serious > > damage in a very short time.'' > > > GE's Offering > > > GE, which got a $3 billion investment from Buffett's Berkshire > > Hathaway Inc. yesterday, dropped $2.22 to $22.28 and lost as much as > > $2.45. The company sold stock today at a 9.2 percent discount to > > yesterday's closing price as it seeks to fund its operations. > > GE's shares trade at a valuation of 10 times trailing earnings, the > > lowest since Bloomberg began tracking the data in 1990. > > Raw-material producers in the S&P 500 sank to the lowest since 2006, > > falling 6 percent, after Merrill downgraded fertilizer stocks to > > ``underperform'' and Mosaic Co., the world's largest maker of > > phosphates, reported weaker-than-estimated earnings. > > > Mosaic Tumbles > > > Mosaic tumbled 35 percent to $43.97, its steepest retreat since its > > shares began trading in 2004. CF Industries Holdings Inc., a maker of > > nitrogen and phosphate fertilizers, slumped 30 percent to $62.29. > > Alcoa slumped 8.3 percent to $19.50 after Goldman Sachs Group Inc. > > downgraded the largest U.S. aluminum producer to ``neutral'' from > > ``buy'' on concern metal demand will fall along with the weakening > > economy. > > EBay Inc., the largest Internet auction company, lost 8.4 percent to > > $19.11. The shares were downgraded to ``equal-weight'' from > > ``overweight'' at Morgan Stanley, which said ``trends deteriorated > > more than expected'' in the third quarter. > > > Bailout Plan > > > ``If I were a congressman I would hold my nose and vote yes, but > > people shouldn't be under any illusions about what's going to > > happen,'' Charles Bobrinskoy, who helps manage about $13 billion as > > vice chairman of Ariel Investments in Chicago, told Bloomberg > > Television. > > > To contact the reporter on this story: Lynn Thomasson in New York at > > [EMAIL PROTECTED] > > > Libor Soars, Commercial Paper Slumps as Credit Freeze Deepens > > By Bryan Keogh > > > Oct. 2 (Bloomberg) -- Interest rates on three-month dollar loans rose > > to a nine-month high, short-term corporate borrowing fell by the most > > ever and leveraged loans tumbled, exacerbating the credit freeze > > that's paralyzing businesses around the world. > > The London interbank offered rate that banks charge each other for > > loans rose for a fourth day, driving a gauge of cash scarcity among > > banks to a record. The biggest drop in financial short-term debt > > outstanding since at least 2000 caused the U.S. commercial paper > > market to tumble 5.6 percent to a three-year low, according to the > > Federal Reserve. > > The crisis deepened after the worst month for corporate credit on > > record. Leveraged loan prices plunged to all-time lows, short-term > > debt markets seized up and even the safest company bonds suffered the > > worst losses in at least two decades as investors flocked to > > Treasuries. Credit markets have frozen and money-market rates keep > > rising even after central banks pumped an unprecedented $1 trillion > > into the financial system > > > ``The credit window is closed,'' Jim Press, president of Chrysler LLC, > > the third-largest U.S. automaker, said today at the Paris Motor Show. > > The financial rescue plan must be approved because ``it's important > > for us to restore credibility in our banking system.'' > > > Interbank Rates > > > Interbank rates have soared as financial institutions hoard cash to > > meet future funding needs amid deepening concern that more banks will > > collapse. Governments in Europe and the U.S. rescued six financial > > institutions in the past week. The Libor- OIS spread, the difference > > between the three-month dollar rate and the overnight indexed swap > > rate, widened to a record 260 basis points today. It was 197 basis > > points a week ago and 79 basis points a month ago. > > Libor for euros advanced 3 basis points to a record 5.32 percent. > > Libor, set by 16 banks in a daily survey by the British Bankers' > > Association, is used to set rates on $360 trillion of financial > > products worldwide, from home loans to derivatives. > > ``We still see upward pressure on maturities from one week,'' said > > Patrick Jacq, a fixed-income strategist in Paris at BNP Paribas SA, > > France's biggest bank. ``The situation is still blocked and we're > > unlikely to see spreads decline before confidence has been restored.'' > > > Commercial Paper > > > The market for commercial paper plummeted $94.9 billion to $1.6 > > trillion for the week ended Oct. 1 as banks and insurers were unable > > to find buyers for the short-term debt amid the worst U.S. financial > > crisis since the Great Depression. Financial paper accounted for most > > of the decline, plunging $64.9 billion, or 8.7 percent, to a two-year > > low. > > > The market dropped for a third straight week, losing a total of $208 > > billion, as money-market funds faced withdrawals from investors, said > > Tony Crescenzi, chief bond market strategist at Miller Tabak & Co. in > > New York. > > > ``The purge is broad and is impacting issuers with far more > > predictable cash flows -- regular run-of-the-mill companies in need of > > working capital,'' Crescenzi wrote today in a note to clients. ``The > > declines add to the urgency for fixes to the credit crisis and bolster > > the case for a Fed rate cut.'' > > > The U.S. market for short-term debt backed by assets including > > mortgages and car loans fell $29.1 billion, or 3.9 percent, this week > > to a seasonally adjusted $724.7 billion, according to the Fed. > > > Lenders are balking at offering cash for longer than a day even as > > central banks pump an unprecedented amount of money into the banking > > system. The European Central Bank today offered $50 billion of > > overnight funds at a marginal rate of 2.75 percent. The Swiss National > > Bank awarded $9 billion. The Bank of England sold $8.9 billion. > > > Futures traders put the odds that the Fed will cut the target interest > > rate at least 25 basis points later this month at 100 percent. The > > rate is currently 2 percent. > > > Leveraged loan prices tumbled 8.57 cents in September to a record low > > of 79.8 cents on the dollar. Price declines will make it harder for > > junk-rated companies to borrow as investors may opt to buy existing > > debt at distressed levels and as capital- constrained banks restrict > > lending. > > > Corporate bonds with the highest AAA ratings lost 6.5 percent in > > September, the most since at least 1989, according to Merrill Lynch & > > Co.'s U.S. Corporates, AAA Rated index. > > > A FOND FAIRWELL. THE DOC IS RIGHT, NO DEBATE ON SERIOUS ISSUES IS > > OCCURING, BUT BLOGS ARE JUST A FORMAT TO VENT ONES SPLEEN. > > > NO MATTER WHAT YOU CHOOSE TO BELIEVE, THE OVERWHELMING EVIDENCE > > INDICATES THE BEGINGING OF THE END OF THE NATION-STATE KNOW AS THE > > USA. IN 5 YEARS TIME IT WILL NO LONGER EXIST. > > > I HAVE GOT EVERYTHING ELSE RIGHT, INCLUDING THIS FINANCIAL MELTDOWN > > (WHICH OF COURSE IS NOT REALLY HAPPENING). --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. -~----------~----~----~----~------~----~------~--~---
