• 12Jun

    3X ETF’s are these safe? Only in strategic doses…

    A favorite of trend traders and daytraders, the 3x ETF.
    The choices in the burgeoning world of ETF’s are expanding faster than the markets can reach critical mass.
    If you chose to put your money into one of these vehicles make sure you understand the risk is also exponential.
    Stockshakers have an eye on a few select ETF’s to keep close tabs on:

    SOXL Daily Semiconductor Bull 3x Shares PHLX Semiconductor Sector Index 300% SOX
    TYH Daily Technology Bull 3X Shares Russell 1000 Technology Index 300% RGUSTL
    SOXS Daily Semiconductor Bear 3x Shares PHLX Semiconductor Sector Index -300% SOX
    TYP Daily Technology Bear 3X Shares Russell 1000 Technology Index -300% RGUSTL
    ETF InformationFunds at a Glance

    Overview
    PerformancePrice InformationDistributionsSymbol Fund Index/Benchmark Daily Target Bloomberg Index Symbol
    Bull     
    BGU Daily Large Cap Bull 3x Shares Russell 1000 300% RIY
    MWJ Daily Mid Cap Bull 3x Shares Russell Midcap Index 300% RMC
    TNA Daily Small Cap Bull 3x Shares Russell 2000 300% RTY
    ERX Daily Energy Bull 3x Shares Russell 1000 Energy 300% RGUSEL
    FAS Daily Financial Bull 3x Shares Russell 1000 Financial Services 300% RGUSFL
    DRN Daily Real Estate Bull 3x Shares MSCI US REIT Index 300% RMZ
    SOXL Daily Semiconductor Bull 3x Shares PHLX Semiconductor Sector Index 300% SOX
    TYH Daily Technology Bull 3X Shares Russell 1000 Technology Index 300% RGUSTL
    BRIL Daily BRIC Bull 2x Shares BNY Mellon BRIC Select ADR Index 200% BKBRIC
    DZK Daily Developed Markets Bull 3X Shares MSCI EAFE Index 300% MXEA
    CZM Daily China Bull 3x Shares BNY Mellon China Select ADR Index 300% BKTCN
    EDC Daily Emerging Markets Bull 3X Shares MSCI Emerging Markets Index 300% MXEF
    INDL Daily India Bull 2x Shares Indus India Index 200% III
    LBJ Daily Latin America Bull 3x Shares S&P Latin America 40 Index 300% SPLAC
    TWOL Daily 2-Year Treasury Bull 3x Shares NYSE Current 2-Year U.S. Treasury Index 300% AXTWO
    TYD Daily 10-Year Treasury Bull 3x Shares NYSE Arca Current 10-Year U.S. Treasury Index 300% AXTEN
    TMF Daily 30-Year Treasury Bull 3x Shares NYSE Arca Current 30-Year U.S. Treasury Index 300% AXTHR
    Bear     
    BGZ Daily Large Cap Bear 3x Shares Russell 1000 -300% RIY
    MWN Daily Mid Cap Bear 3x Shares Russell Midcap Index -300% RMC
    TZA Daily Small Cap Bear 3x Shares Russell 2000 -300% RTY
    ERY Daily Energy Bear 3x Shares Russell 1000 Energy -300% RGUSEL
    FAZ Daily Financial Bear 3x Shares Russell 1000 Financial Services -300% RGUSFL
    DRV Daily Real Estate Bear 3x Shares MSCI US REIT Index -300% RMZ
    SOXS Daily Semiconductor Bear 3x Shares PHLX Semiconductor Sector Index -300% SOX
    TYP Daily Technology Bear 3X Shares Russell 1000 Technology Index -300% RGUSTL
    BRIS Daily BRIC Bear 2x Shares BNY Mellon BRIC Select ADR Index -200% BKBRIC
    DPK Daily Developed Markets Bear 3X Shares MSCI EAFE Index -300% MXEA
    CZI Daily China Bear 3x Shares BNY Mellon China Select ADR Index -300% BKTCN
    EDZ Daily Emerging Markets Bear 3x Shares MSCI Emerging Markets Index -300% MXEF
    INDZ Daily India Bear 2x Shares Indus India Index -200% III
    LHB Daily Latin America Bear 3x Shares S&P Latin America 40 Index -300% SPLAC
    TWOZ Daily 2-Year Treasury Bear 3x Shares NYSE Current 2-Year U.S. Treasury Index -300% AXTWO
    TYO Daily 10-Year Treasury Bear 3x Shares NYSE Arca Current 10-Year U.S. Treasury Index -300% AXTEN
    TMV Daily 30-Year Treasury Bear 3x Shares NYSE Arca Current 30-Year U.S. Treasury Index -300% AXTHR

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  • 20May

     

    How Low Can the Market Go? Pros Say Slide Hasn’t Stopped

     
    With technical barriers continuing to give way and the March 6 “flash-crash” fluke looking like not so much of a fluke anymore, market watchers were left Thursday wondering how much worse things could get.
    Forecasts varied substantially but few thought there was much to stand in the way of a further move down that would bring the major indexes officially into correction territory, or 10 percent off their most recent highs.

    Standard & Poor’s said the correction could total 15 percent by the time all is said and done, sending its benchmark S&P 500 (INDEX: .SPX) to the 940 range.

    Others weren’t quite so pessimistic, but worry seemed to be the word as a confluence of bad news proved a toxic mix that ended a powerful 14-month rally.

    “I would have preferred a pullback that was a little more controlled and a little less news-oriented…something that was orderly and maybe just due to people taking profits and becoming a little more conservative,” says Richard Sparks, senior analyst at Schaeffer’s Investment Research in Cincinnati. “This feels a little out of control at this point.”

     

    Expressing a common sentiment among traders, Sparks says the S&P is likely to visit the 1050-1060 range before turning around.

    Trading-floor technicians had been looking at 1100-the 200-day moving average-as a key support level for the S&P 500. The point has held up well during recent market dips off the rally that began from the brutal lows of March 2009.

    But 1100 came and went Thursday as markets worried about whether European debt problems would spread to the US and how new financial regulations would hurt banks.

    It all harkened back to May 6, the day of the so-called “flash crash” when the Dow temporarily lost nearly 1,000 points. Written off by some as an anomaly-caused either by a trader mistake such as a “fat finger” and duress from electronic trading triggers-the averages in fact have fallen below the closing levels of that tumultuous day and threaten to drop even lower.

     

    “The flash-crash kind of worried me from the standpoint that not only did they not know exactly why it happened, but if you don’t know why it happened you can’t prevent it from happening again,” Sparks says.

    Many traders see the market drop as a normal part of the process after such a relentless rally. Yet even among that group, the flash-crash represents a signature moment.

    “Our first level of support should be that fat-finger low,” says Todd Horwitz, a trader and chief strategist for the Adam Mesh Trading Group. “No matter what they blame it on, no matter what the story is, that’s the footprint they put into the market.”

    In fact, Horwitz thinks the market could fall to the intraday lows of the flash crash-or 1065 for the S&P and 9869 for the Dow (INDEX: .DJIA).

     

    “The market overall is in a downtrend. The trend has changed from a couple weeks ago when we finally peaked out,” Horwitz says. “Volatility is increasing here in the market. There’s a lot more fear versus the complacency we had back then.”

    To be sure, not everyone was looking on the recent correction-level drop as bad thing.

    After all, technicians for months have been saying the market was overbought and a true correction actually would be constructive. A leg lower, they reasoned, would be a good entry point for investors who missed the rally.

    “It’s not clearly indicating a ’sell’ signal for us. It could easily be a ‘buy’ signal,” says Dave Lutz, managing director of trading at Stifel Nicolaus in Baltimore. “Consolidation pullbacks make perfect sense so everybody can take a look back and re-evaluate the levels where we are and re-evaluate the macro picture.”

    But the market faces a slew of pressures-geopolitical and domestic events that are forcing technical levels.

     

    “Mutual fund managers have virtually no cash-they’re fully invested,” says Rick Bensignor, chief market strategist at Execution Noble in New York. “In order to handle redemptions, that requires them to sell stock to raise cash. That selling is going to add more selling pressure to the market.”

    While technical levels will trigger automated electronic selling programs, Bensignor points out that fundamentals drive the sentiment that pushes the market to those technical points.

    “There are real problems going on in the world right now,” says Bensignor, who thinks the S&P is likely to hit 1060 but will plunge to 950 should it fail that test. “Technicals are a reflection of behavior and it’s just trying to use charts to anticipate where the behavior is. My best guess is it’s in the process of shifting areas, and it could fall swiftly.”

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  • 18May

    America’s Underclass: Growing Gap Between the Rich and Poor
    Macro economic data suggest the great recession is over. But the gap between the haves and the have-nots is growing, thanks, in large part, to a jobless recovery. Wall Street Cheat Sheet’s Damien Hoffman says the growing underclass now accounts for about 10% of the U.S. population.

    In this clip, he and his brother Derek, who jointly run the Wall Street Cheat Sheet website, point to several signs America is turning into a two-class society:  

    -The foreclosure problem. 2.8 million homes were foreclosed in 2009.  RealyTrac expects that number to increase to 3-3.5 million in 2010.  Damien Hoffman thinks it could be even higher if “strategic foreclosures” become a more accepted practice.
    - Unemployment.  The official rate is 9.9% but the wider measure of under employed and those who have given up on their job search is more like 17%.   That’s more than 24 million Americans out of work.
    - Record numbers using food stamps. The Agriculture Department said a record 40 million Americans, or 1 in 8 Americans, may not be able to eat without government assistance.  “This is the ultimate sign of an under class,”  the Hoffman Brothers say.
    - Take a look at Dollar Tree Stores. The discounter’s stock is near an all-time high while revenues are up 12.5% this year.  In other words, more Americans are chasing cheaper goods.

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  • 04Mar

    House passes tax breaks for new hires
    Legislation passes 217-201; many argue measure won’t create many jobs
    Despite doubts among many lawmakers that it’ll create many jobs, the House on Thursday passed legislation giving companies that hire the jobless a temporary payroll tax break.

    The measure passed 217-201 on a mostly party-line vote. The bill also extends federal highway programs through the end of the year.

    Some Democrats feel the approximately $35 billion jobs bill is too puny, while others say the tax cut for new hires won’t generate many new jobs. However, the pressure is on to address jobs and deliver a badly needed win for President Barack Obama and a Democratic Party struggling in opinion polls and facing major losses in the upcoming midterm elections. Further jobs measures are promised.

    “If that’s the only thing that I can vote on … I’ll vote for it, obviously,” said Rep. Bill Pascrell, D-N.J. “We’ve got to get something moving. We’ve got to get something done.”

    “It’s really not a jobs bill,” said Rep. Barbara Lee, D-Calif. “It’s one small piece.” Lee said she instead wants money in the legislation for job training and youth summer jobs.

    The House had passed a much larger measure in December that contained almost $50 billion in infrastructure funding, $50 billion in help for cash-starved state governments, and a six-month extension of jobless aid. That bill conspicuously left out the proposals to award tax credits for hiring new workers. House Speaker Nancy Pelosi was among those skeptical of that idea.

    The Senate responded last week with the far smaller measure that the House is reluctantly accepting. The House amended the measure Thursday to conform with so-called pay-as-you-go budget rules that have become an article of faith among moderate Democrats. The rules require future spending increases or tax cuts to be paid for with either cuts to other programs or equivalent tax increases.

    The minor tweak means that the notoriously balky Senate would have to act again before Obama could sign the bill into law.

    The $35 billion bill — blending $15 billion in tax cuts and subsidies for infrastructure bonds issued by local governments with the $20 billion in transportation money — is far smaller than the massive economic stimulus bill enacted a year ago.

    The jobs bill has been a source of tension between House and Senate Democrats.

    “It’s ridiculous that it’s taken so long for the Senate to overcome indifference and obstruction to finally send a bill back to the House which represents just a fraction of what we need to do to help the unemployed,” said House Appropriations Committee Chairman David Obey, D-Wis. “But better late than never, and better something than nothing.”

    Across the Capitol, the Senate is debating a far more costly measure to clean up a lot of unfinished business from last year. The $100 billion-plus bill would extend unemployment assistance, revive a bevy of expired tax breaks, help states with soaring Medicaid costs and prevent doctors from having to absorb big cuts in Medicare payments. The popular initiatives are traditionally extended on a bipartisan basis for brief periods of time, which hides their long-term costs.

    The Senate plans to act on the jobs bill after wrapping up the unfinished-business bill, which means it probably won’t be sent to Obama until next week.

    The jobs bill contains two major provisions. First, it would exempt businesses hiring the unemployed from the 6.2 percent Social Security payroll tax through December and give them an additional $1,000 credit if new workers stay on the job a full year. The Social Security trust fund would be reimbursed for the lost revenue.

    Second, it would extend highway and mass transit programs through the end of the year and pump in $20 billion in time for the spring construction season. The money would make up for lower-than-expected gasoline tax revenues.

    Small businesses would continue to be able to write off equipment purchases as a business expense. Much of the bill is financed by cracking down on offshore tax havens.

    Several lawmakers in both parties criticized the payroll tax break, saying that it wouldn’t do much to create jobs and that the bulk of it would go to employers for new hires that would be made anyway.

     

    “It simply encourages conduct that would occur anyway,” said Lloyd Doggett, D-Texas.

    Rep. Steve LaTourette, R-Ohio, said he asked businessmen at town meetings in his Rust Belt district whether they would hire people based on the payroll tax holiday. “Nobody raised their hands,” LaTourette said. “This is not going to create one job.”

    “It’s an insipid, weak piece of legislation,” said Jim McDermott, D-Wash.

    “It’s not that good, but it’s better than nothing,” said Jim McGovern, D-Mass. “And we’re going to have to do more. But the bill that I would have liked to have seen pass can’t pass the United States Senate.”

    Economist Mark Zandi of Moody’s Economy.com said the new hiring tax credit could spur creation of about 250,000 new jobs. The economy has shed 8.4 million jobs since the recession began in December 2007.

    Tags:

  • 19Dec

     

     

    Seven U.S. banks closed by regulators 140 have failed in 2009

     

    Seven U.S. banks were closed by regulators on Friday, bring the total this year to 140 as the effects of the credit crisis continued to be felt across the country.

    What’s more, the Federal Deposit Insurance Corp. established temporary institutions to help close two of the failed banks.

    Atlanta-based RockBridge Commercial Bank became the 25th Georgia-based bank to fail this year. The FDIC was unable to find another institution to take over the failed bank, and so will mail checks to retail depositors for insured funds.

    RockBridge Commercial Bank had roughly $294 million in assets and $291.7 million in deposits as of Sept. 30. Its failure will cost the federal deposit-insurance fund $124.2 million, the regulator said.

    Panama City, Fla.-based Peoples First Community Bank became the 14th to fail in that state in 2009. Peoples First Community Bank had $1.7 billion in deposits as of Sept. 30, and Gulfport, Miss.-based Hancock Bank has agreed to assume those deposits.

    Peoples First Community Bank’s failure will cost the deposit-insurance fund $556.7 million, according to the FDIC.

    New Baltimore, Mich.-based Citizens State Bank’s failure will cost the deposit-insurance fund $76.6 million, with the FDIC creating the Deposit Insurance National Bank of New Baltimore to protect depositors of Citizens State Bank.

    The new bank will remain open for 45 days to allow depositors to access insured deposits and open an account elsewhere, the agency said. Columbus, Ohio-based Huntington National Bank will operate the DINB under contract with the FDIC.

    An FDIC spokesman said the agency has created such bridge banks “several times this year and in previous years.”

    Irondale, Ala.-based New South Federal Savings Bank also was closed by regulators Friday. The bank had $1.2 billion in deposits as of Sept. 30, which will be assumed by Plano, Texas-based Beal Bank, the FDIC added.

    New South Federal Savings Bank’s failure will cost the deposit-insurance fund $212.3 million.

    Springfield, Ill.-based Independent Bankers’ Bank was closed, with $511.5 million in deposits as of Sept. 30.

    The FDIC said it created the Independent Bankers’ Bank Bridge Bank to allow client banks of Independent Bankers’ Bank “to maintain their correspondent banking relationship with the least amount of disruption.”

    Independent Bankers’ Bank’s failure will cost the deposit-insurance fund $68.4 million.

    Two Southern California banks were closed Friday, the 16th and 17th such failures in the Golden State as a whole.

    First Federal Bank of California in Santa Monica was taken over by regulators. OneWest Bank of Pasadena will assume all of its deposits and take over First Federal’s 39 branches, the FDIC said.

    OneWest Bank agreed to purchase all of the $6.1 billion in First Federal Bank assets and did not pay the FDIC a premium for the $4.5 billion in total deposits; the hit to the deposit-insurance fund will be $146 million.

    Separately, La Jolla, Calif.-based Imperial Capital Bank was closed. It had $2.8 billion in deposits as of Sept. 30, the FDIC said, and its failure will cost the deposit-insurance fund $619.2 million. City National Bank of Los Angeles is assuming all of the deposits in the “least costly” resolution, according to the agency.

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  • 18Dec

     

    Credit card’s newest trick: 79.9 percent interest
    First Premier card carries heavy interest rate

    It’s no mistake. This credit card’s interest rate is 79.9 percent.

    The bloated APR is how First Premier Bank, a subprime credit card issuer, is skirting new regulations intended to curb abusive practices in the industry. It’s a strategy other subprime card issuers could start adopting to get around the new rules.

    Typically, the First Premier card comes with a minimum of $256 in fees in the first year for a credit line of $250. Starting in February, however, a new law will cap such fees at 25 percent of a card’s credit line.

    In a recent mailing for a preapproved card, First Premier lowers fees to just that limit — $75 in the first year for a credit line of $300. But the new law doesn’t set a cap on interest rates. Hence the 79.9 APR, up from the previous 9.9 percent.

    “It’s the highest on the market. It’s the highest we’ve ever seen,” said Anuj Shahani, an analyst with Synovate, a research firm that tracks credit card mailings.

    The terms are eyebrow raising, but First Premier targets people with bad credit who likely can’t get approved for cards elsewhere. It’s a group that tends to lean heavily on credit too, meaning they’ll likely incur steep financing charges.

    So for a $300 balance, a cardholder would pay $20 a month in interest.

    First Premier said the 79.9 APR offer is a test and that it’s too early to tell whether it will be continued, according to an e-mailed statement. To comply with the new law, the bank said it will no longer offer the card that has $256 in first-year fees as of Feb. 21, 2010. However, customers will still be able to use their existing cards.

    According to First Premier’s Web site, the credit cards are issued by its sister organization Premier Bankcard. The company, based in Sioux Falls, S.D., says Premier Bankcard is the 10th largest issuer of MasterCard and Visa cards in the country, with more than 3.5 million customers.

    In a mailing sent to prospective customers in October with the revamped terms, First Premier writes “…you might have less-than-perfect credit and we’re OK with that.” The letter notes that an online application or phone call is still required, but guarantees a 60-second status confirmation.

    The letter also states there are no hidden fees that aren’t disclosed in the attached form. That’s where the 79.9 percent interest rate and $75 annual fee are listed. There’s also $29 penalty if you pay late or go over your credit limit. The credit limit is $300.

    The bank did not say how many people were offered the 79.9 APR card, but noted that it needed to “price our product based on the risk associated with this market.”

    Even if First Premier doesn’t stick with the 79.9 APR, it will likely hike rates considerably from the current 9.9 percent to offset the lower fees, said Shahani of Synovate.

    The revamped terms may not be the only changes; First Premier also appears to be moving away from the riskiest borrowers.

    The bank typically mails offers to subprime households, meaning those with credit scores below 700. In the third quarter, however, 84 percent of its offers were sent to subprime households, down from 91 percent the same period last year, according to Synovate.

    First Premier could be cleaning up its credit card portfolio since the new regulations will limit its ability to raise interest rates. That could mean First Premier won’t issue cards as liberally to those with bad credit.

    As harsh as First Premier’s terms seem, that could be a blow to those who rely on the card, said Odysseas Papadimitriou, CEO of CardHub.com.

    “Even when the cost of credit is astronomical, for people in true emergencies, it’s much better than not having access to credit,” said Papadimitriou.

    Until Feb. 21, First Premier is still offering its even-higher-fee card online. So the price for credit the bank charges is at least $256 in first-year fees.

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  • 27Nov

    Black Friday Discounts

     

    We know how chaotic shopping can be this time of year, especially when you’re shopping for stocks.

    So to make things a little easier on you, we’ve compiled a list who’s offering the sharpest Black Friday discounts and everything else you needs to know to trade retail this holiday season.

    It’s all below. Hope you find some Black Friday bargains!

    Jefferies analyst Dan Binder

    I think on Black Friday you’re going to see consumers coming out in droves for Black Friday sales. And following is where they will find the best discounts.

    Black Friday 2009: Discount Wars
    Average Discounts From Regular Price
    JC Penney                59%
    Kohl’s                      53.7%
    Wal-Mart                42.9%
    Target                    41.6%
    Best Buy                36.7%
    Home Depot            28.4%
    Source: Jefferies & Company
    Of all the names mentioned above I think Best Buy [BBY  42.80    -0.46  (-1.06%)   ] is the best name. The competition is out of the picture (with Circuit City gone) and they’ve got the Windows 7 release which will likely drive PC sales, as well as many other catalysts.

    JP Morgan analyst Charles Grom

    Into Black Friday, I’d take a balanced barbell approach, says JP Morgan analyst Charles Grom. What I mean by that is own a Walmart [WMT  54.63    -0.33  (-0.6%)   ] and a Dollar Tree [DLTR  50.58    -0.49  (-0.96%)   ]. But on the other side of that I’d also own Kohl’s [KSS  54.45    -1.09  (-1.96%)   ] and Macy’s [M  16.96    -0.60  (-3.42%)   ]. The department stores have come out of favor and I think the smart trade is to go long those stocks into Black Friday.

    In the luxury space I’d be cautious, he adds. I think shoppers are waiting for big sales. I was bullish on Saks [SKS  6.56    -0.18  (-2.67%)   ] but got out at $7. Right now, I’d point investors to the mid-teir deparment stores.

    Citi retail analyst Kimberly Greenberger

    We do think it’s going to be a blue box Christmas, says Citi retail analyst Kimberly Greenberger on Monday’s Fast Money. The single highest correlating factor to spending among high end consumers is stock market returns with a 3-6 month lag. Given the rally we’ve had off the march lows I think that bodes well for a high end holiday.

    The acceleration that we’re likely to see in the sales trends will likely be more dramatic on the high end. As a result I really like Tiffany [TIF  43.32    -0.57  (-1.3%)   ]. And if you’re looking for a stock to avoid, I’d avoid Aeropostale [ARO  31.47    -0.20  (-0.63%)   ], adds Greenberger.

     

    Patty Edwards of Storehouse

    The consumer is still looking for value, says Patty Edwards on Tuesday’s Halftime Report. I’d play retail either with companies that offer consumers value, like Dollar Tree [DLTR  50.58    -0.49  (-0.96%)   ] or with the best operators. And in my opinion that’s J Crew [JCG  43.09    -0.96  (-2.18%)   ].

    Pete Najarian

    In the space I’m watching Nordstrom [JWN  33.97    -0.86  (-2.47%)   ] as well as TJX [TJX  38.57    -0.50  (-1.28%)   ], adds the Pit Boss. Both have climbed but I think they both continue to work.

    Joe Terranova

    I like Gap [GPS  22.00    -0.42  (-1.87%)   ], says the Liquidator. And don’t forget Amazon[AMZN  131.74    -2.29  (-1.71%)   ], as well as Visa [V  80.43    -1.36  (-1.66%)   ] and Mastercard [MA  235.69    -4.15  (-1.73%)   ].

    Karen Finerman

    My long trade is Children’s Place [PLCE  32.55    -0.95  (-2.84%)   ], adds the Chairwoman. I also like Walmart [WMT  54.63    -0.33  (-0.6%)   ] and Target [TGT  47.74    -0.09  (-0.19%)   ] .

    Tim Seymour

    I like Gap [GPS  22.00    -0.42  (-1.87%)   ], says the Ambassador, for its Old Navy brand.

    Tags:

  • 11Oct

     

    Sideways trading in this market.
    Internals point down, Futures started up at 6:00 EST Sunday 10/11/09
    The Dollar is still driving the equities rally, as the dollar drops the inverse reaction has been occurring in the equities market.

    Stockshakers actively trades the /ym Dow Futures, currently long with very tight stops. 9:00PM EST 10/11/09 Sunday.

     

    Dollar Reaches Breaking Point at Banks Shifting Record Reserves

    Central banks flush with record reserves are increasingly snubbing dollars in favor of euros and yen, further pressuring the greenback after its biggest two- quarter rout in almost two decades. Policy makers boosted foreign currency holdings by $413 billion last quarter, the most since at least 2003, to $7.3 trillion, according to data compiled by Bloomberg. Nations reporting currency breakdowns put 63 percent of the new cash into euros and yen in April, May and June, the latest Barclays Capital data show. That’s the highest percentage in any quarter with more than an $80 billion increase.

    World leaders are acting on threats to dump the dollar while the Obama administration shows a willingness to tolerate a weaker currency in an effort to boost exports and the economy as long as it doesn’t drive away the nation’s creditors. The diversification signals that the currency won’t rebound anytime soon after losing 10.3 percent on a trade-weighted basis the past six months, the biggest drop since 1991.

    “Global central banks are getting more serious about diversification, whereas in the past they used to just talk about it,” said Steven Englander, a former Federal Reserve researcher who is now the chief U.S. currency strategist at Barclays in New York. “It looks like they are really backing away from the dollar.”

    Sliding Share

    The dollar’s 37 percent share of new reserves fell from about a 63 percent average since 1999. Englander concluded in a report that the trend “accelerated” in the third quarter. He said in an interview that “for the next couple of months, the forces are still in place” for continued diversification.  America’s currency has been under siege as the Treasury sells a record amount of debt to finance a budget deficit that totaled $1.4 trillion in fiscal 2009 ended Sept. 30.

    Intercontinental Exchange Inc.’s Dollar Index, which tracks the currency’s performance against the euro, yen, pound, Canadian dollar, Swiss franc and Swedish krona, fell to 75.77 last week, the lowest level since August 2008 and down from the high this year of 89.624 on March 4. The index, trading at 76.489 today, is within six points of its record low reached in March 2008.

    Foreign companies and officials are starting to say their economies are getting hurt because of the dollar’s weakness.

     

    Stockshakers are buying CLWR.
    If the stock fails 7.03 the position will be reversed.

    GOOG Calls - Android fuel?

    Tough choices for feds giving out broadband money

     

    The federal government will soon start handing out the first $4 billion from a pot of stimulus funds intended to spread high-speed Internet connections to more rural communities, poor neighborhoods and other pockets of the country clamoring for better access. The challenge is that the government has received $28 billion in requests.

    So the reviewers at the Commerce and Agriculture Departments who will award the broadband money must make hard choices. The 2,200 applications each envision something different _ more fiber-optic lines, for example, or computer labs or municipal wireless networks. But they all promise that their proposals will create jobs and bring new economic opportunities.

    What follows are snapshots of four projects representing a cross section of the broadband stimulus hopefuls. It’s too soon to know which plans will win federal grants or loans, either in this round of funding or in the next, as the total broadband stimulus expands to $7.2 billion. Those that do get picked may not get the full amount they are seeking.But perhaps one _ or more _ of these projects has a chance.

     

    For the Coeur d’Alene Indian tribe in the Idaho panhandle, the stimulus money could mean a lifeline to the outside world.The tribe is asking for $12.2 million for a ring of fiber-optic lines that could connect up to 3,500 homes on one side of its rural reservation, which is about half the size of Rhode Island.

    Right now, the tribe’s landline broadband options are limited. The local cable company has pulled out of the market. And the phone company, Verizon Communications Inc., offers digital subscriber line (DSL) service to just a small slice of the the reservation.

    Although the tribe launched its own wireless network in 2005 with the help of Agriculture Department funding, that network reaches less than half the reservation and slows to a crawl whenever too many people get online at once.

    Valerie Fast Horse, the tribe’s information technology director, says stimulus money would let the Coeur d’Alene Indians build a network that is “more stable and more reliable” and could deliver faster connections at lower prices.The tribe’s wireless network currently offers top speeds of 1.5 megabits per second, comparable to standard DSL service available elsewhere. But it charges users about $100 a month, about four times the standard price. The proposed fiber network would deliver a 20-megabit connection _ faster than what most cable subscribers get _ for $100 a month. Or tribe members would be able to get a 1.5-megabit connection for $25 a month.

    Fast Horse envisions all sorts of uses for the fiber lines, including distance learning. Tribe members already use video conferencing to participate in classes at North Idaho College, about 35 miles away, when the roads are too icy to drive. But

    that requires them to travel to the tribe’s education center, which has a landline connection to the Internet. A fiber-to-the-home network would let tribal members take classes without leaving their kitchens, she says.It would also enable Coeur d’Alene members to consult with medical specialists around the country. And it would help the tribe preserve its language and culture, by allowing more members to access the tribe’s video-sharing Web site, Rezcast. Among other things, the site features clips of powwows and online tutorials with tribal elders speaking their native language.

     

    Clearwire Corp., a company pioneering the use of a next-generation wireless technology known as WiMax, is upfront about the fact that some markets don’t make sense for telecom providers that need to show a profit.So Clearwire is asking for $19.4 million to build a high-speed wireless network in a handful of poor Detroit neighborhoods that it otherwise might not serve anytime soon.

    Although those neighborhoods have more than 800,000 people, high unemployment and poverty levels make for a tough business case. But federal dollars would change the equation, says John Bunce, president of the Clearwire unit applying for stimulus funding.

    And with that seed money as a starting point, the company pledges to spend its own capital to expand the wireless network across metropolitan Detroit, including more lucrative suburban markets.

    The company offers a range of wireless plans, including a $45-a-month package that delivers speeds averaging 3 megabits to 6 megabits per second. On the low end, the company offers a basic 1-megabit connection for $25 a month.

    In Detroit, Clearwire says, it would also provide free and discounted accounts for poor residents through nonprofit partners.

     

     

    In Appalachia, a nonprofit Internet provider called the Mountain Area Information Network (MAIN) wants help expanding a service started back in the dial-up Internet days so that people in the mountains of North Carolina wouldn’t have to make a long-distance phone call to get online.

    MAIN is asking for $2.5 million to extend its wireless network in Asheville, N.C., and several remote mountain communities. A sister non-profit is asking for $38.8 million to install fiber lines that would connect that network to the Internet.Launched in 1996, MAIN today has about 1,200 dial-up subscribers, 400 wireless subscribers and several hundred additional customers who pay to access a Wi-Fi connection for a few hours or a few days at a time. Stimulus money would enable the non-profit to spread its wireless “cloud” to 11,000 additional homes in Asheville public housing projects and surrounding low-income neighborhoods.

    Wally Bowen, MAIN’s executive director, says the service would bring inexpensive mobile Internet connections _ with speeds of 3 megabits per second for $30 a month _ to a transient, low-income community that includes struggling artists and young entrepreneurs. Many of those people, he says, cannot sign up for the typical one-year or two-year contracts required to get the cheapest Internet rates from the big phone companies.

    MAIN would also use federal funding to bring wireless connections to 1,700 homes in Graham County, an isolated, rural district that has no four-lane highway. Although the library and community college in Graham County’s only town,

    Robbinsville, do provide high-speed Internet access, budget cuts have restricted the number of hours that those computer centers are open.

    In addition, MAIN would use stimulus money to extend its wireless service to Mount Mitchell State Park, home to the highest point east of the Mississippi. That would allow campers, park rangers and visiting scientists studying acid rain and biodiversity to get real-time updates on weather and trail conditions.

     
    Philadelphia is making its second run at a big municipal broadband project.

    The city is asking for $21.8 million to connect police precincts, fire stations, libraries, housing projects, recreation centers and community organizations across three inner-city neighborhoods.

    Allan Frank, Philadelphia’s chief technology officer, envisions doing this with a combination of fiber lines and a wireless network. That would bring high-speed links to city buildings to handle municipal affairs _ while also enabling garbage

    collectors, emergency responders, fire inspectors and other city workers to stay connected using handheld devices in the field.Philadelphia also has two other stimulus proposals: The city’s public housing authority would like $2.4 million to place computer labs in housing projects. And the city’s library system, working closely with community groups, is asking for $15 million to set up Internet training programs, supply laptops and install Internet connections to get low-income residents online.

    Five years ago, Philadelphia partnered with EarthLink Inc. to blanket the city with wireless access, in hopes of providing cheap connections for poor neighborhoods. But that effort ended in failure: EarthLink concluded the venture had no business model and pulled out. Now the city hopes to buy the network assets that EarthLink left behind.Frank says the stimulus money is an opportunity to “restart the conversation about what our technology future should look like.” By retaining control over the project and focusing on broadband adoption as well as access, he added, the city would avoid the mistakes it made last time.”This is a game reset for us,” he says.

     
    Android to overtake iPhone in 2012 says analyst
    Symbian still on top, but BlackBerry down

     

    Google’s Android will have more than quadrupled its market share by the end of 2012, market watcher Gartner has claimed. But Symbian looks set to remain the dominant smartphone OS for several years to come.Android’s market share stood at a paltry 1.6 per cent during Q1 2009, but will grow to 14.5 per cent by the time Q4 2012 rolls around, Gartner forecast, based on an estimated 522m smartphones shipping worldwide during the period.As a result, Android will move from its current position as the sixth most popular operating system for smartphones to become the second most popular, Gartner said.

    The main reason for Android’s market share growth will, Gartner VP Ken Dulaney told website AppleInsider, be because “unlike Apple, they [Google] license their OS to multiple OEMs”.Dulaney said many handset makers are betting their futures on Android, while Apple is just one company.Speaking of Apple, its share of the smartphone OS market will also grow - but only from 10.8 per cent to 13.7 per cent, Gartner said.

    Symbian will remain the most popular OS. However, its market share will drop from 49.3 per cent during Q1 2009 to 39 per cent by Q4 2012.Research in Motion’s BlackBerry OS is currently the second most popular handset OS, Gartner said, with a Q1 2009 market share of 19.9 per cent. But it will slip to fifth place by Q4 2012 with market share of just 12.5 per cent.Windows Mobile’s share will grow from 10.3 per cent to 12.8 per cent during the same quarters, Gartner added, which will see it remain as the fourth most popular phone-based OS.

     

    Total Campaign Contributions/Lobbying by TARP Recipients

    Return on Investment
    Total campaign contributions and lobbying by TARP recipients*

    >

    Company Campaign Contributions, 07-08 Cycle Lobbying Expenditures, 2008 TARP Payment Return on Investment
    Bank of America Corp**
    $5,752,630
    $8,790,000
    $45,000,000,000
    309335%
    Citigroup Inc.
    $4,799,678
    $7,660,000
    $50,000,000,000
    401194%
    AIG
    $929,774
    $9,690,000
    $40,000,000,000
    376556%
    JPMorgan Chase & Co.
    $4,778,638
    $5,390,000
    $25,000,000,000
    245754%
    Wells Fargo & Company
    $1,553,471
    $1,200,740
    $25,000,000,000
    907601%
    General Motors Corporation
    $916,142
    $14,071,000
    $10,400,000,000
    69293%
    The Goldman Sachs Group, Inc.
    $5,690,351
    $3,280,000
    $10,000,000,000
    111378%
    Morgan Stanley
    $3,689,027
    $3,120,000
    $10,000,000,000
    146764%
    The PNC Financial Services Group Inc.
    $68,525
    $0
    $7,579,200,000
    11060389%
    U.S. Bancorp
    $496,461
    $570,000
    $6,599,000,000
    618676%
    Chrysler Holding LLC and Cerberus Capital Management
    $1,075,350
    $7,927,782
    $5,500,000,000
    60990%
    GMAC LLC
    $72,207
    $4,620,000
    $5,000,000,000
    106460%
    SunTrust Banks, Inc.
    $175,903
    $0
    $4,850,000,000
    2757101%
    Capital One Financial Corporation
    $700,161
    $1,132,000
    $3,555,199,000
    193944%
    Regions Financial Corp.
    $161,775
    $180,000
    $3,500,000,000
    1023966%
    Fifth Third Bancorp
    $149,550
    $80,000
    $3,408,000,000
    1484544%
    American Express Company
    $1,028,038
    $3,790,000
    $3,389,000,000
    70240%
    BB&T Corp.
    $262,737
    $0
    $3,133,640,000
    1192591%
    Bank of New York Mellon Corporation
    $886,701
    $558,402
    $3,000,000,000
    207498%
    KeyCorp
    $159,280
    $210,000
    $2,500,000,000
    676893%
    CIT Group Inc.
    $23,200
    $90,000
    $2,330,000,000
    2058204%
    Comerica Inc.
    $210,538
    $0
    $2,250,000,000
    1068591%
    State Street Corporation
    $152,627
    $980,000
    $2,000,000,000
    176481%
    Marshall & Ilsley Corporation
    $57,400
    $0
    $1,715,000,000
    2987705%
    Northern Trust Corporation
    $240,892
    $0
    $1,576,000,000
    654135%
    Zions Bancorporation
    $117,159
    $60,000
    $1,400,000,000
    790151%
    Huntington Bancshares
    $188,700
    $232,971
    $1,398,071,000
    331455%
    Synovus Financial Corp.
    $10,150
    $0
    $967,870,000
    9535565%
    Popular, Inc.
    $12,700
    $390,000
    $935,000,000
    232083%
    First Horizon National Corporation
    $30,050
    $0
    $866,540,000
    2883561%
    M&T Bank Corporation
    $3,500
    $10,000
    $600,000,000
    4444344%
    City National Corporation
    $262,965
    $0
    $400,000,000
    152011%
    Webster Financial Corporation
    $14,850
    $0
    $400,000,000
    2693503%
    First Bancorp
    $4,900
    $0
    $400,000,000
    8163165%
    Fulton Financial Corporation
    $5,700
    $0
    $376,500,000
    6605163%
    TCF Financial Corporation
    $103,300
    $0
    $361,172,000
    349534%
    South Financial Group, Inc.
    $29,100
    $0
    $347,000,000
    1192340%
    Wilmington Trust Corporation
    $59,850
    $0
    $330,000,000
    551278%
    East West Bancorp
    $4,800
    $0
    $306,546,000
    6386275%
    Sterling Financial Corporation
    $5,750
    $0
    $303,000,000
    5269465%
    Whitney Holding Corporation
    $27,950
    $0
    $300,000,000
    1073245%
    Susquehanna Bancshares, Inc
    $6,850
    $0
    $300,000,000
    4379462%
    Valley National Bancorp
    $950
    $0
    $300,000,000
    31578847%
    UCBH Holdings, Inc.
    $42,750
    $0
    $298,737,000
    698700%
    New York Private Bank & Trust Corporation
    $6,350
    $0
    $267,000,000
    4204624%
    Cathay General Bancorp
    $2,500
    $0
    $258,000,000
    10319900%
    Wintrust Financial Corporation
    $4,401
    $0
    $250,000,000
    5680427%
    SVB Financial Group
    $18,300
    $0
    $235,000,000
    1284053%
    International Bancshares Corporation
    $116,100
    $0
    $216,000,000
    185947%
    Trustmark Corporation
    $6,500
    $0
    $215,000,000
    3307592%
    Umpqua Holdings Corp.
    $650
    $0
    $214,181,000
    32950823%
    MB Financial Inc.
    $15,150
    $0
    $196,000,000
    1293629%
    First Midwest Bancorp, Inc.
    $1,750
    $0
    $193,000,000
    11028471%
    Pacific Capital Bancorp
    $500
    $480,000
    $180,634,000
    37493%
    United Community Banks, Inc.
    $12,250
    $0
    $180,000,000
    1469288%
    Boston Private Financial Holdings, Inc.
    $6,400
    $0
    $154,000,000
    2406150%
    Independent Bank Corp.
    $2,250
    $0
    $150,000,000
    6666567%
    National Penn Bancshares, Inc.
    $1,500
    $0
    $150,000,000
    9999900%
    Dickinson Financial Corporation
    $94,050
    $0
    $146,000,000
    155137%
    Central Pacific Financial Corp.
    $19,750
    $0
    $135,000,000
    683444%
    Sterling Bancshares, Inc.
    $9,150
    $0
    $125,198,000
    1368184%
    FirstMerit Corp.
    $4,500
    $0
    $125,000,000
    2777678%
    Banner Corporation
    $6,140
    $0
    $124,000,000
    2019444%
    Signature Bank
    $7,875
    $0
    $120,000,000
    1523710%
    1st Source Corporation
    $450
    $0
    $111,000,000
    24666567%
    S&T Bancorp
    $3,200
    $0
    $109,000,000
    3406150%
    Park National Corporation
    $10,500
    $0
    $100,000,000
    952281%
    Old National Bancorp
    $8,250
    $0
    $100,000,000
    1212021%
    F.N.B. Corporation
    $1,000
    $0
    $100,000,000
    9999900%
    Pinnacle Financial Partners, Inc.
    $29,850
    $0
    $95,000,000
    318158%
    Iberiabank Corporation
    $2,000
    $0
    $90,000,000
    4499900%
    Plains Capital Corporation
    $59,650
    $0
    $87,631,000
    146809%
    Midwest Banc Holdings, Inc.
    $2,800
    $0
    $84,784,000
    3027900%
    Sandy Spring Bancorp, Inc.
    $250
    $0
    $83,094,000
    33237500%
    Columbia Banking System, Inc.
    $2,500
    $0
    $76,898,000
    3075820%
    TowneBank
    $4,750
    $0
    $76,458,000
    1609542%
    Texas Capital Bancshares, Inc.
    $18,150
    $0
    $75,000,000
    413123%
    Bank of the Ozarks, Inc.
    $11,150
    $0
    $75,000,000
    672546%
    Wesbanco Bank Inc.
    $208
    $0
    $75,000,000
    36057592%
    Green Bankshares, Inc.
    $1,200
    $0
    $72,278,000
    6023067%
    Virginia Commerce Bancorp
    $8,850
    $0
    $71,000,000
    802160%
    Southwest Bancorp, Inc.
    $50,650
    $0
    $70,000,000
    138103%
    Flushing Financial Corporation
    $2,300
    $0
    $70,000,000
    3043378%
    Superior Bancorp Inc.
    $250
    $0
    $69,000,000
    27599900%
    Nara Bancorp, Inc.
    $2,000
    $0
    $67,000,000
    3349900%
    First Bancorp
    $2,650
    $0
    $65,000,000
    2452730%
    SCBT Financial Corporation
    $250
    $0
    $65,000,000
    25999900%
    CoBiz Financial Inc.
    $1,000
    $0
    $64,450,000
    6444900%
    Union Bankshares Corporation
    $1,000
    $0
    $59,000,000
    5899900%
    Liberty Bancshares, Inc.
    $20,900
    $0
    $58,000,000
    277412%
    Great Southern Bancorp
    $2,500
    $0
    $58,000,000
    2319900%
    WSFS Financial Corporation
    $21,550
    $0
    $53,000,000
    245840%
    Ameris Bancorp
    $1,000
    $0
    $52,000,000
    5199900%
    State Bankshares, Inc.
    $4,800
    $0
    $50,000,000
    1041567%
    Home Bancshares, Inc.
    $1,500
    $0
    $50,000,000
    3333233%
    Fidelity Southern Corporation
    $300
    $0
    $48,200,000
    16066567%
    MetroCorp Bancshares, Inc.
    $1,500
    $0
    $45,000,000
    2999900%
    Cadence Financial Corporation
    $8,250
    $0
    $44,000,000
    533233%
    Exchange Bank
    $2,750
    $0
    $43,000,000
    1563536%
    Sterling Bancorp
    $1,300
    $0
    $42,000,000
    3230669%
    Eagle Bancorp, Inc.
    $801
    $0
    $38,235,000
    4773308%
    Bridgeview Bancorp, Inc.
    $6,600
    $0
    $38,000,000
    575658%
    OceanFirst Financial Corp.
    $3,300
    $0
    $38,000,000
    1151415%
    First Defiance Financial Corp.
    $2,000
    $0
    $37,000,000
    1849900%
    State Bancorp, Inc.
    $6,850
    $0
    $36,842,000
    537739%
    Fidelity Financial Corporation
    $1,657,052
    $2,190,000
    $36,282,000
    843%
    Yadkin Valley Financial Corporation
    $1,250
    $0
    $36,000,000
    2879900%
    West Bancorporation, Inc.
    $250
    $0
    $36,000,000
    14399900%
    Porter Bancorp
    $5,000
    $0
    $35,000,000
    699900%
    Encore Bancshares Inc.
    $4,300
    $0
    $34,000,000
    790598%
    First Security Group, Inc.
    $3,350
    $0
    $33,000,000
    984975%
    Centrue Financial Corporation
    $1,000
    $0
    $33,000,000
    3299900%
    Pulaski Financial Corp
    $1,000
    $0
    $33,000,000
    3299900%
    Peapack-Gladstone Financial Corporation
    $2,300
    $0
    $28,685,000
    1247074%
    Centerstate Banks of Florida Inc.
    $500
    $0
    $27,875,000
    5574900%
    Citizens & Northern Corporation
    $700
    $0
    $26,000,000
    3714186%
    Peoples Bancorp of North Carolina, Inc.
    $2,125
    $0
    $25,054,000
    1178912%
    Shore Bancshares, Inc.
    $3,800
    $0
    $25,000,000
    657795%
    Horizon Bancorp
    $2,600
    $0
    $25,000,000
    961438%
    Intervest Bancshares Corporation
    $2,300
    $0
    $25,000,000
    1086857%
    HF Financial Corp.
    $250
    $0
    $25,000,000
    9999900%
    Heritage Financial Corporation
    $1,250
    $0
    $24,000,000
    1919900%
    Wainwright Bank & Trust Company
    $15,250
    $0
    $22,000,000
    144162%
    Citizens South Banking Corporation
    $750
    $0
    $20,500,000
    2733233%
    First Financial Service Corporation
    $7,325
    $0
    $20,000,000
    272938%
    BNCCORP, Inc.
    $5,050
    $0
    $20,000,000
    395940%
    C&F Financial Corporation
    $250
    $0
    $20,000,000
    7999900%
    Carver Bancorp, Inc
    $5,300
    $0
    $19,000,000
    358391%
    Bar Harbor Bankshares/Bar Harbor Bank & Trust
    $500
    $0
    $19,000,000
    3799900%
    Security Federal Corporation
    $1,250
    $0
    $18,000,000
    1439900%
    ECB Bancorp, Inc./East Carolina Bank
    $1,000
    $0
    $18,000,000
    1799900%
    Timberland Bancorp, Inc.
    $430
    $0
    $16,641,000
    3869900%
    Carolina Bank Holdings, Inc.
    $1,250
    $0
    $16,000,000
    1279900%
    BankFirst Capital Corporation
    $500
    $0
    $16,000,000
    3199900%
    Monarch Financial Holdings, Inc.
    $1,997
    $0
    $14,700,000
    736004%
    Magna Bank
    $2,250
    $0
    $13,795,000
    613011%
    Morrill Bancshares, Inc.
    $3,100
    $0
    $13,000,000
    419255%
    LCNB Corp.
    $1,000
    $0
    $13,000,000
    1299900%
    OneUnited Bank
    $3,550
    $0
    $12,063,000
    339703%
    First Manitowoc Bancorp, Inc.
    $2,500
    $0
    $12,000,000
    479900%
    1st Constitution Bancorp
    $2,000
    $0
    $12,000,000
    599900%
    Pacific Coast Bankers’ Bancshares
    $250
    $0
    $11,600,000
    4639900%
    Mid Penn Bancorp, Inc.
    $1,800
    $0
    $10,000,000
    555456%
    Uwharrie Capital Corp
    $1,500
    $0
    $10,000,000
    666567%
    Midland States Bancorp
    $500
    $0
    $10,000,000
    1999900%
    New Hampshire Thrift Bancshares, Inc.
    $500
    $0
    $10,000,000
    1999900%
    Citizens First Corporation
    $74,700
    $0
    $8,779,000
    11652%
    Syringa Bancorp
    $750
    $0
    $8,000,000
    1066567%
    First Sound Bank
    $2,716
    $0
    $7,400,000
    272359%
    Western Community Bancshares, Inc.
    $5,600
    $0
    $7,290,000
    130079%
    Fidelity Bancorp, Inc.
    $5,100
    $0
    $7,000,000
    137155%
    Somerset Hills Bancorp
    $2,000
    $0
    $7,000,000
    349900%
    American State Bancshares, Inc.
    $5,350
    $0
    $6,000,000
    112050%
    Patapsco Bancorp, Inc.
    $1,050
    $0
    $6,000,000
    571329%
    Seaside National Bank & Trust
    $400
    $0
    $6,000,000
    1499900%
    Northeast Bancorp
    $1,000
    $0
    $4,227,000
    422600%
    Pacific Commerce Bank
    $1,500
    $0
    $4,060,000
    270567%
    Capital Pacific Bancorp
    $1,750
    $0
    $4,000,000
    228471%
    Bank of Commerce
    $15,950
    $0
    $3,000,000
    18709%
    FPB Financial Corp.
    $500
    $0
    $3,000,000
    599900%
    Treaty Oak Bancorp, Inc.
    $250
    $0
    $3,000,000
    1199900%
    Grand Total
    $37,477,300
    $76,702,895
    $305,212,309,000
    267208%

    *TARP recipient list accessed at Treasury.gov on Feb. 2, 2009. List includes only recipients that spent money on lobbying or were associated with campaign contributions. Campaign contributions include money from PACs and individuals but do not include post-election fundraising.

    **Includes data for Merrill Lynch, which was acquired by Bank of America

    Tags: , , , , , , , , ,

  • 04Oct

    Spot gold seen in $980-$1,010 per oz range in near term

    Gold stayed above $1,000 an ounce on
    Monday as the dollar remained pressured after last week’s jobs
    data pushed the currency down broadly on concerns the U.S.
    economic recovery may not be as robust as previously thought.
        Traders remained wary of a sudden liquidation of speculative
    long positions in U.S. gold futures even after such positions
    eased slightly from record highs in the week ended Sept. 29,
    putting a cap on prices.
        At the same time, physical demand emerged at the market’s
    lows last week to underpin prices.
        The market appeared more resilient than in March 2008 when it
    failed to sustain gains after scaling record highs, taking nearly
    a year to retest the $1,000 level, traders said. But an attempt
    at an all-time high this time was likely to take a while.
        “Long futures positions likely increased over the past week,
    showing how persistent those longs are. Wariness about them is
    capping prices, but it doesn’t seem like selling momentum is
    building either,” said Yuichi Ikemizu, Tokyo branch manager for
    Standard Bank.
        “Selling pressure isn’t as strong as last year, with physical
    demand emerging when prices fell towards $980 last week to
    underpin the market. At the same time, nobody is chasing up the
    market,” he said, adding that he expected prices to stay in a
    range between $980 and $1,010 for a while.
        Spot gold XAU had inched up 0.2 percent to $1,003.55 an
    ounce as of 0240 GMT, after posting a weekly gain of 1 percent
    last week.
        The precious metal reclaimed the $1,000-an-ounce level after
    a choppy session on Friday when the greenback fell in response to
    U.S. employers cutting more jobs than expected in September,
    sending the unemployment rate to a 26-year high of 9.8 percent.
        U.S. gold futures for December delivery GCZ9 were barely
    changed at $1,004.8 per ounce, compared with $1,004.3 an ounce on
    the COMEX division of the New York Mercantile Exchange. The
    December contract had hit the day’s low of $987 an ounce on
    Friday.
        Non-commercial net long positions in gold futures on the
    COMEX division of the New York Mercantile Exchange eased to
    231,386 lots for the week ended Sept. 29 from an all-time high of
    236,749 lots the week before, figures from the Commodity Futures
    Trading Commission showed. 
        The world’s largest gold-backed exchange-traded fund, the
    SPDR Gold Trust GLD, said its holdings stood at 1,096.548
    tonnes as of Oct. 4, up 0.1 percent or 1.221 tonnes from the
    previous business day. XAU
        The dollar remained under pressure on Monday after falling
    against most major currencies on Friday. USD
        Finance ministers from the Group of Seven industrialised
    nations said at a meeting in Istanbul at the weekend that too
    much volatility in the foreign exchange market could hurt the
    global economy and financial system. 
        While G7 officials had a chance to address concern that a
    further dollar slide could hurt many countries’ exports, they
    merely recycled verbatim the language on exchange rates that
    appeared in its statement six months ago. The failure to break
    new ground on currency rates leaves the door open to more dollar
    weakness in coming months as the U.S. economy struggles with its
    trade and budget deficits. 
        “The G7 statement didn’t move the currency market, so the
    impact on gold was virtually nil,” Standard Bank’s Ikemizu said.
        The world’s largest silver-backed exchange-traded fund, the
    iShares Silver Trust SLV, said its bullion holdings nudged down
    3.53 tonnes, or 0.04 percent, from the previous day to 8,594.22
    tonnes on Friday, the lowest level since late May. 
        Traders said investor appetite for silver was hurt by
    copper’s fall to two-month lows on Friday when the weak U.S. jobs
    data eroded confidence in demand prospects. The two precious
    metals move similarly and closely on the outlook for industrial
    demand.

        PRICES
     Precious metals prices at 0240 GMT
     Metal             Last    Change  Pct chg  YTD pct chg Turnover
     Spot Gold        1003.50    2.20   +0.22     14.01
     Spot Silver        16.17    0.05   +0.31     42.84
     Spot Platinum    1281.00    3.00   +0.23     37.45
     Spot Palladium    293.50   -0.50   -0.17     59.08
     TOCOM Gold       2908.00   18.00   +0.62     13.02        27280
     TOCOM Platinum   3714.00   20.00   +0.54     40.05         6795
     TOCOM Silver      469.40    0.60   +0.13     47.01          270
     TOCOM Palladium   852.00   14.00   +1.67     54.91          101
     Euro/Dollar       1.4636
     Dollar/Yen         89.74

     TOCOM prices in yen per gram, except TOCOM silver which is
    priced in yen per 10 grams.  Spot prices in $ per ounce.

     

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  • 12Sep

    Life settlements
    A life settlement generally refers to the sale of a life insurance policy by a policyowner for less than the face value of the policy to third party investors.[1] The third party investor(s) plans to profit at death of the insured by collecting more in death benefits that were paid out (e.g., the purchase price, the transactions costs, and premiums). This translates into higher profits the sooner the policy holder dies. A “viatical settlement” is the same as a life settlement except the insured is chronically or terminally ill (as defined by the IRS Code).

    Transactions of this type have been available for Americans since 1911. Aids sufferers created a small market in the 1980’s when their policies were sought out by speculators. The credit crisis has seen a rise of elderly Americans for whom their life-insurance policy is one of their more valuable assets.

    The Economist reports estimates of it being a $18-19 billion market as of June, 2009.

    The following was provided by the life settlement industry:

    Generally speaking, life settlements are an option for high-net-worth policy owners age 70 or older. Independent estimates report that among this group, over 50% of policies have a market value that exceeds the cash value offered by the carrier. A growing number of experts now believe that informing clients about offering life settlements should fall under the fiduciary duty of a financial adviser.[citation needed] With this being said, those established in the industry are now placing an emphasis on life settlement education for financial professionals so that they can accurately present the life settlement option to all clients who might benefit from it.

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