Tuesday, September 1, 2009


Check out this chart...

Baltic Dry Index Posts Steepest Fall in 10 Months

The Baltic Dry Index, a measure of shipping costs for commodities, posted its biggest monthly drop since October on plunging rentals for iron-ore carriers.


Check out the Chinese...

A weekend report that Chinese state-owned companies will be allowed to default on commodity derivative contracts provoked anger and dismay among investment banks on Monday as they feared a damaging precedent.

Also here...and here

Shanghai Index May Drop 25% on Economy, Xie Says

(Last Paragraph)

U.S. stocks extended a worldwide drop, with the Standard & Poor’s 500 Index trimming a sixth straight monthly gain, amid concern the global rally in equities has outpaced the prospects for an economic recovery.

China led the slump as the Shanghai Composite Index tumbled 6.7 percent, the most since June 2008, on concern a slowdown in lending will stifle growth. Freeport-McMoRan Copper & Gold Inc. and Exxon Mobil Corp. dropped as copper plunged the most in two months and oil fell below $70 a barrel. American International Group Inc., the insurer rescued by the U.S., tumbled 9.8 percent to lead the S&P 500 lower on concern the shares are expensive.

The S&P 500 lost 0.8 percent to 1,020.62 at 4:07 p.m. in New York. The Dow Jones Industrial Average retreated 47.92 points, or 0.5 percent, to 9,496.28. The MSCI World Index of 23 developed nations slid 0.8 percent. Five stocks fell for each that rose on the New York Stock Exchange, the broadest sell-off in two weeks.

“China and the U.S. are very economically linked right now,” said Michael Binger, a Minneapolis-based fund manager at Thrivent Asset Management, which oversees about $60 billion. “The stock markets are going to move together.”


Now a perspective on September 1st

After all, it is the first trading day of September, and the month on average is far and away the worst performer of the calendar.

But Tuesday's loss actually is unusual: September's bad reputation notwithstanding, the market usually does rise on the first trading day of the month.

Since 1896, in fact, when the Dow Jones Industrial Average(INDU 9,338, -157.80, -1.66%) was created, this market index has risen 59% of the time on the first trading day of September. Since the month as a whole has seen a rising market just 42% of the time, we know that September's reputation as a losing month is typically caused by losses later in the month.

So Tuesday's market action is worse than we would have expected, even taking September's bad reputation into account.


Imagine that Government Sachs who seemed to be sucking people into the market.


And all that concern by obama

A former Treasury official has told the watchdog for the $700 billion Wall Street bailout program that President Obama's promise to restrict lobbyist access to the bailout was made purely for political reasons.

Months after the administration's pledge, the lobbyist rules haven't been implemented and Neel Kashkari, the one-time czar of the agency's Troubled Asset Relief Program, told the office of the special inspector general for TARP that the pledge to craft safeguards against lobbyist influence was a defensive move.


"Mr. Kashkari believed that this statement was purely for political reasons with Obama's new entering administration, and that there was no substantive reason for this announcement," the office wrote in a document obtained by The Washington Times in which the inspector general recounted Mr. Kashkari's April 30 interview with the auditors.

"He noted that, at that time, there had been headlines in the press regarding lobbyists influencing the process, and Treasury wanted to show that they were taking action," the inspector general's office wrote.

Is it any wonder WHY the obama administration wants to stop the Internet reporting of the news?



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