Bushonomics: All that money you've lost -- where did it go?

When stocks plummet and your house value slides, what happens to the money you used to have?


In this Tuesday, 7 October 2008 file photo, artist Laura Gilbert displays her 'Zero Dollar' artwork in front of the New York Stock Exchange in New York. If you're looking to track down your missing money — figure out who has it now, maybe ask to have it back — you might be disappointed to learn that is was never really money in the first place.

11 October 2008
By Eric Carvin

NEW YORK -Trillions in stock market value -- gone. Trillions in retirement savings -- gone. A huge chunk of the money you paid for your house, the money you're saving for college, the money your boss needs to make payroll -- gone, gone, gone.
Whether you're a stock broker or Joe Six-pack, if you have a 401(k), a mutual fund or a college savings plan, tumbling stock markets and sagging home prices mean you've lost a whole lot of the money that was right there on your account statements just a few months ago.

But if you no longer have that money, who does? The fat cats on Wall Street? Some oil baron in Saudi Arabia? The government of China?

Or is it just -- gone?

If you're looking to track down your missing money -- figure out who has it now, maybe ask to have it back -- you might be disappointed to learn that is was never really money in the first place.

Robert Shiller, an economist at Yale, puts it bluntly: The notion that you lose a pile of money whenever the stock market tanks is a "fallacy." He says the price of a stock has never been the same thing as money -- it's simply the "best guess" of what the stock is worth.

"It's in people's minds," Shiller explains. "We're just recording a measure of what people think the stock market is worth. What the people who are willing to trade today -- who are very, very few people -- are actually trading at. So we're just extrapolating that and thinking, well, maybe that's what everyone thinks it's worth."

Shiller uses the example of an appraiser who values a house at $350,000, a week after saying it was worth $400,000.

"In a sense, $50,000 just disappeared when he said that," he said. "But it's all in the mind."

Though something, of course, is disappearing as markets and real estate values tumble. Even if a share of stock you own isn't a wad of bills in your wallet, even if the value of your home isn't something you can redeem at will, surely you can lose potential money -- that is, the money that would be yours to spend if you sold your house or emptied out your mutual funds right now.

And if you're a few months away from retirement, or hoping to sell your house and buy a smaller one to help pay for your kid's college tuition, this "potential money" is something you're counting on to get by. For people who need cash and need it now, this is as real as money gets, whether or not it meets the technical definition of the word.

Still, you run into trouble when you think of that potential money as being the same thing as the cash in your purse or your checking account.

"That's a big mistake," says Dale Jorgenson, an economics professor at Harvard.

There's a key distinction here: While the money in your pocket is unlikely to just vanish into thin air, the money you could have had, if only you'd sold your house or drained your stock-heavy mutual funds a year ago, most certainly can.

"You can't enjoy the benefits of your 401(k) if it's disappeared," Jorgenson explains. "If you had it all in financial stocks and they've all gone down by 80 percent -- sorry! That is a permanent loss because those folks aren't coming back. We're gonna have a huge shrinkage in the financial sector."

There was a time when nobody had to wonder what happened to the money they used to have. Until paper money was developed in China around the ninth century, money was something solid that had actual value -- like a gold coin that was worth whatever that amount of gold was worth, according to Douglas Mudd, curator of the American Numismatic Association's Money Museum in Denver.

Back then, if the money you once had was suddenly gone, there was a simple reason -- you spent it, someone stole it, you dropped it in a field somewhere, or maybe a tornado or some other disaster struck wherever you last put it down.

But these days, a lot of things that have monetary value can't be held in your hand.

If you choose, you can pour most of your money into stocks and track their value in real time on a computer screen, confident that you'll get good money for them when you decide to sell. And you won't be alone -- staring at millions of computer screens are other investors who share your confidence that the value of their portfolios will hold up.

But that collective confidence, Jorgenson says, is gone. And when confidence is drained out of a financial system, a lot of investors will decide to sell at any price, and a big chunk of that money you thought your investments were worth simply goes away.

If you once thought your investment portfolio was as good as a suitcase full of twenties, you might suddenly suspect that it's not.

In the process, of course, you're losing wealth. But does that mean someone else must be gaining it? Does the world have some fixed amount of wealth that shifts between people, nations and institutions with the ebb and flow of the economy?

Jorgenson says no -- the amount of wealth in the world "simply decreases in a situation like this." And he cautions against assuming that your investment losses mean a gain for someone else -- like wealthy stock speculators who try to make money by betting that the market will drop.

"Those folks in general have been losing their shirts at a prodigious rate," he said. "They took a big risk and now they're suffering from the consequences."

"Of course, they had a great life, as long as it lasted."

Historical Commentary:

The song under the photograph called, “Where in the Money,” was very popular during the 1930’s Great Depression and personally, I always felt it was a catchy bit of music; some excellent and very memorable music came during the time of the Great Depression.

This rendition of this particular song is a bit different from what I remember from the original, but nevertheless very nice.

Even writing about this particular song makes me think of the Golden age of radio, which was also popular in the 1930’s; when people could afford one or the battery.

As some people knows, on the radio one could not be seen, so other means had to be used so the audience could understand what was occurring.

Some excellent programs where said to be on the radio, one I think some people remember is the “Lone Ranger;” which later found it way to television.

When I was a little girl, I used to like to watch the television episodes of this particular program and have heard some of the radio versions.

And we certainly can not forget Tonto, the Lone Ranger’s faithful companion; which on television was played by Jay Silverheels, who was actually Native American.

I have to admit, he was more my favorite on the program.

Furthermore, my Mother use to let me watch this program, on Saturday mornings; she enjoyed the radio versions.

Bushonomics: Bush on Global Economics?

Bush Meets with G7 Finance Ministers to Discuss World Economy (Video)

Something I notice a lot more lately, is US President George W. Bush is not taking responsibility for his own actions on the economy crash and tends to make remarks blaming others for the US economic situation.

As far as Bush resolving the economic situation, he apparently, keeps taking the back seat in the cinema.

Bushonomics: Ford, GM say they won’t file for bankruptcy

Tumbling stock market crushing shares of both Detroit automakers

Workers at a GM assembly plant make final adjustments to SUVs coming down the assembly line. The automaker is reportedly likely to announce more production cuts and possible plant.


10 October 2008

NEW YORK - Executives at Ford and General Motors said Friday they are not considering filing for bankruptcy, even as the tumbling stock market crushed shares of both automakers.

Ford’s CEO Alan Mulally said that the company is focused on conserving its cash and putting restructuring plans in place as it tries to weather the credit crisis and stock market decline.

Mulally said in an interview with The Associated Press that he is not worried about bankruptcy or a takeover, even as Ford’s stock price hit their lowest level in 25 years.

Separately, Ford said Chief Financial Officer Don Leclair will retire effective November 1 and be replaced by the executive credited with leading the turnaround of its European operations.

GM issued a statement Friday saying that while it faces “unprecedented challenges” related to the ongoing problems in the financial markets and weakening economies across the globe, it still doesn’t consider bankruptcy protection as an option.

“Bankruptcy would not be in the interests of our employees, stockholders, suppliers or customers, and we believe speculation about a possible filing is exaggerated and unconstructive,” GM said.

A person with knowledge of GM’s plans said Friday that the company is likely to announce more production cuts and possible plant closures as early as next week. The person did not want to be identified because plans are not finalized.

GM has said previously it would make cuts in engine, transmission and metal stamping operations to correspond with four pickup truck and sport utility vehicle plant closures announced in June.

GM announced a plan in July that calls for cutting $10 billion in costs and raising another $5 billion through asset sales and borrowing through 2009.

Shares of GM hit their lowest price since 1949 in the opening minutes of trading on Wall Street Friday as financial turmoil and a weakening global auto market heightened worries that the automaker may be unable to pull out of its nosedive before it runs out of cash.

The company’s shares lost nearly one-third of their value Thursday, plunging to their lowest level in more than 58 years, after Standard & Poor’s Ratings Services said the automaker’s credit could fall further into junk status, making it even tougher to borrow money.

The drop marked the first time GM shares hit the $4 mark since Nov. 16, 1949, according to the Center for Research in Security Prices at the University of Chicago.

David Healy, analyst for Burnham Securities, called S&P’s GM warning “shooting at the life boats.” But given the perilous credit situation, he added the best step for the automaker is to conserve liquidity and focus on its most important model changes.

It’s time to “keep their powder dry,” he said.

“They’re limited on what they can borrow anyway,” Healy said. “They have some liquidity. They have some contractual borrowing power from the banks, which doesn’t depend on ratings. They also have some assets they can sell.”

GM had $21 billion in cash and $5 billion available through credit lines at the end of June for total liquidity of $26 billion, but it has been burning through cash at a pace of more than $1 billion a month and needs about $11 billion to $14 billion on hand to keep operating.

GM shares plummeted $2.15, or 31.1 percent, to close Thursday at $4.76 after falling as low as $4.65 — the automaker’s lowest trade since March 15, 1950, when the Korean War was three months away from beginning and gasoline cost 27 cents a gallon.

Ford’s stock price fell 58 cents, or 21.8 percent, Thursday to close at $2.08. It had fallen as low as $2.03 earlier in the session, it’s lowest price since June 1, 1983. Friday morning, Ford shares rose 27 cents, or 13 percent, to $2.35, after initially dropping to $2.05.

Analysts have voiced concerns that the ongoing slump in U.S. vehicle sales could last longer than they previously expected and could spread to other parts of the world, particularly Europe.

U.S. auto sales are down 13 percent through September compared with the same period of 2007, and J.D. Power and Associates on Thursday reduced its sales projections. It now expects U.S. new vehicle sales to total 13.6 million this year and 13.2 million in 2009, down from 16.1 million units in 2007.

Overseas sales in growing markets like Russia and South America been a bright spot for GM as U.S. sales slumped. GM said Thursday, however, that sales of its Opel and Vauxhall brands dropped more than 6 percent in Europe during the first nine months of the year — a sign that the downturn is hitting economies globally and taking worldwide auto sales down with it.

The rapid growth of auto sales in China, the world’s second-largest auto market after the United States, also has slowed sharply.

In addition, the three-week ban on short selling some stocks — including GM and Ford — expired late Wednesday. Short selling involves borrowing a company’s shares, selling them, and then buying them back when the stock falls and returning them to the lender. The practice allows investors to profit from the decline in a stock’s value.

Healy said it’s possible that the expiration of the short-sell ban hurt the automakers’ stocks, though there is no way to know for sure.

“Both stocks have been favorites of the short-sellers” he said. “These are volatile stocks. They go down 10 percent when the market goes down 5 percent, and vice versa.”

Shares of GM have withered since peaking near $94 in 1999 and 2000, and they’re down 88 percent from their 52-week high of $43.20 set a year ago Sunday.

The precipitous drop in GM’s market capitalization — $2.7 billion at Thursday’s close — makes a takeover conceivable, said David Cole, chairman of the Center for Automotive Research in Ann Arbor.

“Absolutely,” he said when asked about the possibility. “Except for one thing: lots of debt. And most people are very reluctant. It’s not just the current equity, it’s the debt that you have to absorb at the same time.”

At the end of June, GM reported more than $32 billion in long-term debt, and since then it has exercised $3.5 billion of a $4.5 billion line of credit.

New Orleans Restaurants Fare Well In Economic Crisis

Tourism Officials Say Tours, Conferences Help Area

11 October 2008

NEW ORLEANS-It seems every industry is keeping a close eye on what's happening with the economy.

The service industry is the New Orleans area's bread and butter, so WDSU NewsChannel 6 wanted to find out how restaurants are faring.

Industry experts said growth in the service industry was basically flat in 2007. That's why now more than ever local restaurants have to pinch pennies to earn every customer.

Phil Degruy owns Phil's Grill in Metairie and Mandeville.

With gas prices already eating many restaurants profits, he said the failing economy making matters worse.

"Here in Metairie, it's great," Degruy said. "Mandeville is a little slow taking off, and I think that has to do with the economy right now."

Even so, the Louisiana Restaurant Association said New Orleans restaurants are doing better than national ones.

"Here in New Orleans, eating out is such a strong part of the culture that we really will give up other things before we give up going out to eat with our friends or family," resident Wendy Waren said.

As a precaution, many restaurants are instituting cost-saving strategies.

"They're ordering less frequently, thinking more long-term about perishable and non perishable items they will need and reducing food spoilage and waste in the kitchen," Waren said.

Restaurants are also coming up with creative marketing campaigns.

Phil's Grill has a rewards card.

"Royalty Rewards is like a frequent flier deal," Degruy said. "Every time you eat, you earn points and I buy you burgers."

Degruy hasn't raised his prices yet. In this economy, he said he's banking on burgers.

"I think the fine dining establishments will suffer more as disposable income becomes less," he said. "People are still going to eat out and people are still going to eat burgers."

Tourism officials said one of the things that's helping the New Orleans area are tours and some large conferences scheduled earlier this year for fall.

In Other News:
Homeowners Question Increased Assessments (Video)

Three years later, 6,500 subsidized New Orleans apartments fester

Bushonomics: Wall Street Crisis to Crash

With financially strapped taxpayers unable to help and the global community finding distance.

Further Information:
Bush’s Radio Address (Audio)

Bushonomics: United States to take stake in banks, first since Depression

After US Undeclared Stock Market Crash of 2008

10 October 2008
by Jeannine Aversa

WASHINGTON - The U.S. government will buy an ownership stake in a broad array of American banks for the first time since the Great Depression, Treasury Secretary Henry Paulson said late Friday, announcing the historic step after stock markets jolted still lower around the world despite all efforts to slow the selling stampede.

Separately, the United States . and the globe's other industrial powers pledged to take "decisive action and use all available tools" to prevent a worldwide economic catastrophe.

"This is a period like none of us has ever seen before," declared Paulson at a rare Friday night news conference. He said the government program to purchase stock in private U.S. financial firms will be open to a broad array of institutions, including banks, in an effort to help them raise desperately needed money.

The administration received the authority to take such direct action in the US$700-billion economic rescue bill that Congress passed and President George W. Bush signed last week.

Earlier Friday, stock prices hurtled downward in the United States, Europe and Asia, even as Bush tried to reassure Americans and the world that the U.S. and other governments were aggressively addressing what has become a near panic.

A sign of how bad things have gotten: A drop of 128 points in the Dow Jones industrials was greeted with sighs of relief after the index had plummeted much further on previous days. The week ended as the Dow's worst ever, with the index down an incredible 40.3 per cent since its record close almost exactly one year earlier, on Oct. 9. 2007.

Investors suffered a paper loss of $2.4 trillion for the week, as measured by the Dow Jones Wilshire 5000 index, and for the past year the losses have totalled $8.4 trillion.

It was even worse overseas on Friday. Britain's FTSE index ended below the 4,000 level for the first time in five years; Germany's DAX fell seven per cent and France's CAC-40 finished down 7.7 per cent. Japan's benchmark Nikkei 225 index fell 9.6 per cent, also hitting a five-year low. For the week, the Nikkei lost nearly a quarter of its value. Russia's market never even opened.

Paulson announced the administration's new effort to prop up banks at the conclusion of discussions among finance officials of the Group of Seven major industrialized countries. That group endorsed the outlines of a sweeping program to combat the worst global credit crisis in decades.

Earlier this week, Britain had moved to pour cash into its troubled banks in exchange for stakes in them - a partial nationalization.

Paulson said the U.S. program would be designed to complement banks' own efforts to raise fresh capital from private sources. The government's stock purchases will be of non-voting shares so it will not have power to run the companies.

The purchase of stakes in companies would be in addition to the main thrust of the $700-billion rescue effort, which is to purchase distressed assets from financial institutions as a way of unthawing frozen credit, getting banks to resume more normal lending operations and staving off severe problems for businesses and everyday Americans alike.

It would mark the first time the government has taken equity ownership in banks in this manner since a similar program was employed during the Depression.

Paulson and Federal Reserve chairman Ben Bernanke met with their counterparts from the world's six other richest countries late in the day as the rout of financial markets sped ahead despite earlier dramatic rescue efforts in the U.S. and abroad.

In a statement at the end of that meeting, the G7 officials vowed to protect major banks and to prevent their failure. They also committed to working to get credit flowing more freely again, to support the efforts of banks to raise money from both public and private sources, to bolster deposit insurance and to revive the battered mortgage financing market.

They did not provide specifics beyond that five-point framework.

At the White House earlier in the day, Bush said, "We're in this together and we'll come through this together." He added, "Anxiety can feed anxiety, and that can make it hard to see all that's being done to solve the problem."

He made it clear the United States must work with other countries to battle the worst financial crisis that has jolted the world economy in more than a half-century.

"We've seen that problems in the financial system are not isolated to the United States," he said. "So we're working closely with partners around the world to ensure that our actions are co-ordinated and effective."

The Dow dropped a little over 100 points while he was speaking.

Fear has tightened its grip on investors worldwide even as the United States and other countries have taken a series of radical actions including an unprecedented, co-ordinated interest rate cuts by the Federal Reserve and other major central banks.

Besides the United States, the other members of the G7 meeting in Washington are Japan, Germany, Britain, France, Italy and Canada. Finance officials also planned to meet with Bush Saturday at the White House.

"We are in a development where the downward spiral is picking up speed," said Germany's Finance Minister Peer Steinbrueck, who wanted to see an orchestrated response among the G7.

So did French Finance Minister Christine Lagarde, who said a "co-ordinated, synchronized and rightly timed approach" was needed.

An even larger group of nations - called the G20 - will meet with Paulson on Saturday evening. How the world's finance officials and central bank presidents can better contain the spreading financial crisis also will dominate discussions at the weekend meetings of the 185-nation International Monetary Fund and the World Bank in Washington.

Update:

Paulson: Protectionist policies won't solve crisis

Iran protests to Britain over release of terrorist

10 October 2008

London-Iran on Friday protested to Britain against release of a terrorist who was involved in the 1980 attack on the Iranian Embassy in London, saying that the release will affect relations between the two countries.

"Iran seriously calls on the British government to revise its decision to release this terrorist and reminds governments of their commitment to the war on terror," Iran's Embassy said in a statement.

The statement that the release of Fowzi Badavinejad, who was an accomplice in occupying the embassy and killing two diplomats in 1980, has created a deep concern for Iranians living in the United Kingdom.

Badavinejad is one of six hostage-takers who laid siege on Iran's Embassy in London in May 1980. The terrorists took 26 people hostage and wounded several others leading to the death of two diplomats.

"The release of this terrorist is a concern for the Iranian public opinion as it follows a recent terrorist attack on the Iranian Embassy in London," it said.

Earlier a British official told IRNA that it would not give refugee status to convicted terrorists and "Badavinejad instead is being given only temporary leave to remain in the UK for six months, when his status will be reviewed."

"Our aim is to deport people as quickly as possible but the law requires us to first obtain assurances that the person being returned will not face certain death. In the meantime a person would be put on extremely tight reporting restrictions," he said.

"The British government's decision to release Badavinejad will affect relations between the two countries."

Badavinejad was jailed for life in 1981. His trial was dramatically halted after a few days of starting when he suddenly changed his plea to guilty from charges of conspiracy to murder, false imprisonment, firearm possession and two accounts of manslaughter.

In food crisis, Cuba limits sales so all can eat

Chives for sale are seen at a public market in Havana, Thursday, 9 October 2008. Cuba is limiting how much basic fruits and vegetables citizens can buy at farmers' markets after two hurricanes wiped out more than 30 percent of the island's crops last month.

10 October 2008
By ANNE-MARIE GARCIA

HAVANA -Cuba is limiting how much basic fruits and vegetables people can buy at farmers' markets, irritating some customers but ensuring there's enough — barely — to go around.

The lines are long and some foods are scarce, but because the government has maintained and even increased rations in some areas, Cubans who initially worried about getting enough to eat now seem confident they won't go hungry despite the destruction of 30 percent of the island's crops by hurricanes Gustav and Ike last month.

"Of the little there is, there is some for everyone," 65-year-old Mercedes Grimau said as queued up behind more than 50 people to buy lettuce, limited to two pounds per person.

"I'm not afraid that I will be left without food, but it's a pain to think about all the work we are going to have to go through," Grimau added. "Two or three months ago the farmers markets were well-stocked."

Cuba's government regularly stockpiles beans and other basics, and Economics Minister Jose Luis Rodriguez said authorities are ready to increase the $2 billion they already spend on food imports annually. The world credit crisis won't affect much of those imports because U.S. law forces communist Cuba to use cash to purchase American farm goods. But imports from other countries bought with credit could become more difficult or expensive.

The government is delivering all items distributed each month on the universal ration that provides Cubans with up to two weeks of food — including eggs, beans, rice and potatoes — at very low cost. In some hard-hit provinces, extra food has been added.

But the rest of the food Cubans supplement their diets with at supply-and-demand farmers markets and government produce stands has dwindled, prompting the government to limit consumer purchases and cap prices on items including rice, beans, root crops and fresh greens.

Rodriguez has sought to dispel speculation about a replay of the desperate early 1990s, when shelves were bare and people survived for weeks on one small meal daily. Cubans who lived through deprivation after the Soviet Union's collapse say the current food situation doesn't come close.

"It is true that it will take us some time to bring the agricultural production up to the levels that existed before the hurricanes," Rodriguez told state television this week. "Nevertheless, there is no reason to speculate or assume that there will be any hunger."

Although Cuba's relative financial isolation partially protects it from the jolts of the world economy, an extended credit crisis could stunt the island's foreign currency income if Cubans living abroad lose jobs and stop sending family remittances, or if potential tourists can no longer afford to travel.

But now, Cuba's top challenge is to increase local production of fruits and vegetables sold at the farmers' markets.

Waiting at one market on a recent morning, 55-year-old homemaker Regla Suazo said, "At least with the measures I know I can buy something." Shortly thereafter, the first truck of the day pulled up with green beans, green onions, guavas, avocados, corn, squash, cassava root and sweet potatoes.

But quantities were much smaller than usual. Vendor Nadia Gomez, who received nothing that day, said police checkpoints leading into Havana now turn away trucks unauthorized to market produce in the capital or have been ordered send their goods to harder-hit areas.

Cuban agricultural officials expect six months of food shortages, and are increasing short-cycle crops such as salad greens and taking other measures to ensure everyone gets enough to eat.

At Cuatro Caminos farmers market, among Havana's largest and most varied, vendor Juan Carlos Martinez lamented he had only papayas, guavas and pineapples to sell. "This isn't the business it used to be," he said.

A Sea of Hats

Students in what appears a sea of beautiful red hats attended the annual National Day celebrations in Taipei, Taiwan; on 10 October 2006.

This is one of those photographs while it brings a smile, is absolutely breath-taking.

Putting the current economic crisis on the side for the moment, it still overwhelms me of all the great beauty and wonderful things the world has; even thinking of the people of the world, tends to make my heart feel like it is flying into the clouds and I hope it doesn’t seem presumptuous, of how much I truly care for everyone in the world. - HRM Deborah

Putin Receives Beautiful Birthday Cub

A tiger cub given to Russian Prime Minister Vladimir Putin for his 56th birthday, on 10 October 2008; with the great hope of many birthdays to come. The tiger cub is beautiful and so very sweet looking.

I am so happy, that Russian PM Putin received such a wonder gift.

Something further comes to mind, that the few people I have met from Russia, I have always enjoyed there company and in doing so, I have always hoped to see Russia one day.-HRM Deborah

Walking in Silhouette

Afghan girls walking in the silhouette of Islam in the Bagh-e-Babur park in Kabul, Afghanistan; on 10 October 2008.

I must admit this is one of those photograph’s that seems to tell a great story, which some has been written and more yet to come.
-HRM Deborah

Walking in the World of Flowers and Willows

A most beautiful apprentice Geisha walks past an electronic stock board in Tokyo, Japan; on 10 October 2008.

Most gratefully, I came across an exceptionally wonderful book about Geisha, which includes many things about them.

Which I am diligently trying to read at the moment and what is very interesting I have looked for a book such as this for over thirty years and happened to came across it one day; which made me so very happy the wait was over.

Every time I open the book my heart is so full of joy, it is like walking into a world of great beauty to show respect from a distance to these very honored women and the great opportunity to continue my learning of the whole circle of what is most graciously known as, "World of Flowers and Willows Society.”-HRM Deborah

Bushonomics: The Wall Street Crisis

Iran to open 2 health clinics in Bolivia

Iran to build 2 health clinics in Bolivia, looks to expand medical aid to Latin America

10 October 2008

LA PAZ, Bolivia -Iran's top diplomat in Bolivia says his country will open two low-cost public health clinics in South America's poorest nation.

Business attache Hojjatollah Soltani said Friday the Islamic republic plans to use Bolivia as a base for future Red Crescent medical programs across the continent.

He did not offer details or cost figures for the clinics.

Bolivia and Iran, both outspoken critics of the United States, have only recently opened diplomatic relations.

Iranian President Mahmoud Ahmadinejad pledged US$1 billion in aid to Bolivia alone during a visit last year.

Bolivian Health Minister Ramiro Tapia said the Iranian clinics will expand on medical aid already provided by Cuba and Venezuela.

In other News:

Pakistan, Iran agree to rewrite IPI as IP gas line

Bushonomics: Stocks end worst week mixed after wild session with an undeclared "Crash"

In this 2 October 2008 file photo, a newspaper headline is taped to a booth on the New York Stock Exchange floor. Some news organizations are hesitating to use the word 'crash' for the big sell-off on Wall Street. It has been reported, that the US stock market has indeed crashed, it is just the American’s are too afraid to come out loud and say so.

10 October 2008
By TIM PARADIS

NEW YORK-Wall Street capped its worst week ever with a wild session Friday that saw the Dow Jones industrials rocket within a 1,000 point range before closing with a relatively mild loss and the Nasdaq composite index actually end with a modest advance. Investors were still agonizing over frozen credit markets, but seven days of massive losses made many stocks tempting for traders looking for bargains.

The Dow lost 128 points, giving the blue chips an eight-day loss of just under 2,400. The average had its worst week on record in both point and percentage terms, as did the Standard & Poor's 500 index, the indicator most watched by market professionals.

But there were signs Friday that some investors might believe the market was at or near a bottom. Just one day earlier, selling accelerated in the last hour of trading, giving the Dow a loss of 678 points, as many market players fled, while Friday, many people were clearly buying. And the Russell 2000 index, which tracks the movements of smaller company stocks, had a 4.66 percent gain Friday; small-cap stocks are often first on investors' shopping lists when they think a market turnaround is at hand.

Traders work on the floor of the New York Stock Exchange, Friday, 10 October 2008.

"Nobody wants to miss the bottom," said Anton Schutz, president of Mendon Capital Advisors in Rochester, N.Y., who said of the Dow's performance, "I view it as a victory that we only finished down 100."

Some investors may have been placing bets ahead of the weekend meeting of officials from the Group of Seven nations, who gathered in Washington to discuss the economic meltdown. One of the potential remedies expected to be reviewed at the meeting is for governments to guarantee lending among banks.

"Everyone is hoping for really good news that can invigorate some buying and break this credit freeze, but your guess is as good as mine as to whether that will happen. I think people are desperate for action," said Jon Biele, head of capital markets at Cowen & Co. "It truly is remarkable to watch what's happening."

Still, Friday's widely mixed finish was proof that Wall Street remains deeply troubled, and trading was likely to remain volatile when the market reopens on Monday.

The hair-trigger mentality of the market — a reflection of the intense anxiety on the Street — was evident from the opening bell. The Dow fell 696 points in the first 15 minutes, recovered to a gain of more than 100 before that first hour was over and then turned sharply lower again. It spent much of the session with a deficit between 300 points and 500 points, regaining some ground and then falling again — until the last hour, when the average had swings spanning hundreds of points that took the Dow up as much as 322.

Investors have shuddered the past month over a credit market that remains frozen, posing a threat to the economy. But Friday's gainers included financial stocks, the ones most decimated amid the ongoing banking and credit crisis.

The major indexes' sharp swings were likely exacerbated by the computer-driven "buy" and "sell" orders that kicked in when prices fell far enough to make some stocks look like attractive bets or make other investors want to exit the market.

Specialist James Denaro, left, works at his post on the floor of the New York Stock Exchange after the closing bell, Friday, 10 October 2008.

"Fear has been running rampant all over the Street. Fear and greed, that's what rules the Street. I think the carcass has been stripped to the bone," said Dave Henderson, a floor trader on the New York Stock Exchange for Raven Securities Corp.

The Dow fell 128.00, or 1.49 percent, to 8,451.49. At its low point Friday, the Dow was down 696 at 7,882.51, just 60 points above its low in Wall Street's last bear market, 7,286.27, reached Oct. 9, 2002. It crossed the line between gains and losses 32 times during the session.

The Dow rebounded from a low of 7,882.51 for the day — the worst trading level since March 17, 2003. Still, its close was the lowest since April 25, 2003.

The Dow's stats again told how horrific the run has been on Wall Street:

• The Dow has fallen for eight straight sessions — the longest losing streak since the eight days of declines following the Sept. 11, 2001, terror attacks, when the blue chips lost 1,038.12, or 10.8 percent.

• The Dow has lost 1,874.19 points, or 18.2 percent, over the past week. Its dismal performance outdid the week that ended July 22, 1933, which saw a 17 percent drop — and back then, during the Great Depression, there were six trading days in a week.

• It's been the worst run for the Dow since the nearly two-year bear market that ended in December 1974 when the Dow lost 45 percent.

• Just a year ago, on Oct. 9, 2007, the Dow and the S&P hit their record highs. Since then, the Dow has lost 5,713 points, or 40.3 percent, since closing at 14,164.53. The S&P 500, meanwhile, is off 666 points, or 42.5 percent, from its peak of 1,565.15.

Broader stock indicators were mixed Friday.

The Standard & Poor's 500 index fell 10.70 or 1.18 percent, to 899.22, while the Nasdaq composite index rose 4.39, or 0.27 percent, to 1,649.51.

The Russell 2000 rose 23.28, or 4.66 percent, to 522.48.

Investors on Friday suffered a paper loss for the day of about $100 billion, as measured by the Dow Jones Wilshire 5000 index. Since the highs of Oct. 9, 2007, the losses have piled up to $8.4 trillion.

Most major central banks around the world slashed interest rates this week after continuing problems in the credit market triggered concerns that banks will run out of money. Analysts have described the mood on trading floors this week as panicked at times, with investors bailing out of investments on fears there is no end in sight to the financial carnage.

A stream of selling forced exchanges in Austria, Russia and Indonesia to suspend trading, and those that remained opened were hammered. The rout in Australian markets caused traders there to call it "Black Friday."

European stocks sank Friday, with Britain's FTSE-100 falling 8.85 percent, German's DAX declining 7.01 percent, and France's CAC-40 ending down 7.73 percent. In Asia, the collapse of Japan's Yamato Life Insurance caused already nervous investors to pull even more money out of the market — the Nikkei 225 fell 9.6 percent.

An index considered to be Wall Street's fear gauge reached record highs on Friday in another sign of massive investor anxiety. The Chicago Board Options Exchange Volatility Index, known as the VIX, rose to an all-time intraday high of 76.94 Friday. The VIX, which usually trades under 50, tracks options activity for the companies that make up the S&P 500.

Still, prospects of further government help and, perhaps, attractive prices helped parts of the financial sector show signs of life. Big national banks were among the gainers, including Bank of America Corp., which rose $1.24, or 6.3 percent, to $20.87. Some smaller banks also rose, including Fifth Third Bank Corp., which advanced 67 cents, or 6.9 percent, to $10.40.

Not all financials enjoyed a bounce, however. Morgan Stanley Inc. fell $2.77, or 22 percent, to $9.68 as investors worried that even with a major investment from Japan's Mitsubishi UFJ Financial Group the company was still facing troubles. Meanwhile, Goldman Sachs Group Inc. fell $12.55, or 12 percent, to $88.80.

Citigroup Inc. said late Thursday it was suspending its bid to acquire Wachovia Corp., which will be acquired by Wells Fargo & Co. Citigroup rose $1.18, or 9.1 percent, to $14.11, while Wells Fargo fell $1.06, or 3.9 percent, to $28.31. Wachovia surged $1.55, or 43 percent, to $5.15.

Financials were most prominent among the stocks that rose in the S&P 500, though technology stocks generally advanced. Apple Inc. rose $8.06, or 9.1 percent, to $96.80, while eBay Inc. rose 77 cents, or 4.8 percent, to $16.73.

Investors appeared unfazed by final results arriving in afternoon trading from an auction Friday that set the price of debt issued by now bankrupt Lehman Brothers Holdings Inc. at 8.625 cents on the dollar, down from a preliminary estimate of 9.75 cents.

The auction was for credit default swaps, which are contracts used to insure against the default of financial instruments like bonds and corporate debt. Traded in a $60 trillion, unregulated market, many of the instruments have fallen sharply because of their ties to bad mortgage debt. Those big losses and nervousness about who holds what CDS has made financial institutions hesitant to lend to one another. The auction could help the market determine which companies are most at risk from CDS losses.

___

On the Net:

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

Warm Greetings to the People of Sri Lanka

Global terrorist Interpol fugitive Mahmoud Abbas (C) was an unwelcome participant in this photograph, along with honored members of the Palestinian Friendship Association; pose with a banner representing the Sri Lanka Committee for Solidarity with Palestine (CSP), on 10 October 2008 in Colombo, Sri Lanka.

by HRM Deborah

It is so lovely to have the opportunity to send such warm greeting’s to the kind people of Sri Lanka and the People of Palestine so greatly appreciate your warm kindness and support towards us.

I do apologize that such a man like global terrorist Interpol fugitive Mahmoud Abbas had to darken the country of Sri Lanka for a very short time and it is a hope in the future you should not be subjected to such a horrible man. If circumstances where different, Abbas would not have been in your country to began with.

Over the years what I could, I have tried to learn of Sri Lanka, but my knowledge is a bit short because of my situation and I hope everyone understands, because I wish it was not so.

Nevertheless, I do understand that the country is as beautiful as her people and for this; I have much gratitude to know there are people like the people Sri Lanka in the world and we have the opportunity to be friends.

U.S. Senate panel to study military eavesdropping

10 October 2008
By Scott Shane

WASHINGTON-The chairman of the Senate Intelligence Committee, Senator John Rockefeller IV, said Thursday that the committee would investigate claims by two military eavesdroppers that they routinely listened in on private calls home from American military officers, aid workers and journalists stationed in Iraq.

Rockefeller, Democrat of West Virginia, called the accusations "extremely disturbing."

"Any time there is an allegation regarding abuse of the privacy and civil liberties of Americans it is a very serious matter," he said.

The two former intelligence officers, Adrienne Kinne, an army reservist, and David Murfee Faulk, a navy linguist, spoke Thursday to ABC News. They also were interviewed for a book on the National Security Agency by James Bamford, a former ABC producer and author of two earlier books on the agency, that is scheduled for publication next week.

Kinne and Faulk, both Arabic linguists, were based at Fort Gordon, Georgia, where the NSA has a large listening post focused on the Middle East. Kinne was there from 2001 to 2003 and Faulk was there from 2003 to 2007, Bamford said.

Kinne, who became an anti-Iraq-war activist, has spoken about her experiences as an eavesdropper to several Web publications since last year, but her accusations have not drawn broad attention. Faulk does not appear to have spoken out before.

Faulk told ABC that he and his colleagues listened to "personal phone calls of American officers, mostly in the Green Zone, calling home to the United States, talking to their spouses, sometimes their girlfriends."

He said the eavesdroppers would swap recordings of intimate calls for entertainment. "At times I was told: 'Hey, check this out. There's some good phone sex,' " he said.

Faulk said that when another eavesdropper protested that they were personal calls and should not be transcribed, a supervisor replied, "My orders were to transcribe everything."

Under so-called minimization rules, an eavesdropper who inadvertently picks up an American's private call is required to cut off the monitoring immediately and not to transcribe or keep a recording of the call.

Kinne spoke of listening to aid workers and journalists. She said the calls had often involved "personal, private things with Americans who are not in any way, shape or form associated with anything to do with terrorism."

It was unclear whether the intercepts the two former intelligence officers described were part of the program of surveillance without warrants that President George W. Bush approved shortly after the 2001 terrorist attacks. He and other officials said that program intercepted only calls of people believed to be linked to Al Qaeda.

A statement issued by the NSA on Thursday night said, "Some of these allegations have been investigated and found to be unsubstantiated; others are in the investigation process."

The statement said the agency operated within the law and took accusations of wrongdoing seriously. "When we find misconduct, we take swift and certain remedial action," the statement said.

Mark Mansfield, a spokesman for General Michael Hayden, who was director of the NSA from 1999 to 2005 and is now director of the Central Intelligence Agency, said he had never approved illegal eavesdropping. "The notion that General Hayden sanctioned or tolerated illegalities of any sort is ridiculous on its face," Mansfield said.

Bushonomics: Bush Walking Economic Blind?

For Immediate Release
Office of the Press Secretary
October 10, 2008

Video

Audio

THE PRESIDENT: Good morning. Over the past few days, we have witnessed a startling drop in the stock market -- much of it driven by uncertainty and fear. This has been a deeply unsettling period for the American people. Many of our citizens have serious concerns about their retirement accounts, their investments, and their economic well-being.

Here's what the American people need to know: that the United States government is acting; we will continue to act to resolve this crisis and restore stability to our markets. We are a prosperous nation with immense resources and a wide range of tools at our disposal. We're using these tools aggressively.

The fundamental problem is this: As the housing market has declined, banks holding assets related to home mortgages have suffered serious losses. As a result of these losses, many banks lack the capital or the confidence in each other to make new loans. In turn, our system of credit has frozen, which is keeping American businesses from financing their daily transactions -- and creating uncertainty throughout our economy.

This uncertainty has led to anxiety among our people. And that is understandable -- that anxiety can feed anxiety, and that can make it hard to see all that is being done to solve the problem. The federal government has a comprehensive strategy and the tools necessary to address the challenges in our economy. Fellow citizens: We can solve this crisis -- and we will.

Here are the problems we face and the steps we are taking:

First, key markets are not functioning because there's a lack of liquidity -- the grease necessary to keep the gears of our financial system turning. So the Federal Reserve has injected hundreds of billions of dollars into the system. The Fed has joined with central banks around the world to coordinate a cut in interest rates. This rate cut will allow banks to borrow money more affordably -- and it should help free up additional credit necessary to create jobs, and finance college educations, and help American families meet their daily needs. The Fed has also announced a new program to provide support for the commercial paper market, which is freezing up. As the new program kicks in over the next week or so, it will help revive a key source of short-term financing for American businesses and financial institutions.

Second, some Americans are concerned about whether their money is safe. So the Federal Deposit Insurance Corporation and the National Credit Union Administration have significantly expanded the amount of money insured in savings accounts, and checking accounts, and certificates of deposit. That means that if you have up to $250,000 in one of these insured accounts, every penny of that money is safe. The Treasury Department has also acted to restore confidence in a key element of America's financial system by offering government insurance for money market mutual funds.

Thirdly, we are concerned that some investors could take advantage of the crisis to illegally manipulate the stock market. So the Securities and Exchange Commission has launched rigorous enforcement actions to detect fraud and manipulation in the market. The SEC is focused on preventing abusive practices, such as putting out false information to drive down particular stocks for personal gain. Anyone caught engaging in illegal financial activities will be prosecuted.

Fourth, the decline in the housing market has left many Americans struggling to meet their mortgages and are concerned about losing their homes. My administration has launched two initiatives to help responsible borrowers keep their homes. One is called HOPE NOW, and it brings together homeowners and lenders and mortgage servicers, and others to find ways to prevent foreclosure. The other initiative is aimed at making it easier for responsible homeowners to refinance into affordable mortgages insured by the Federal Housing Administration. So far, these programs have helped more than 2 million Americans stay in their home. And the point is this: If you are struggling to meet your mortgage, there are ways that you can get help.

With these actions to help to prevent foreclosures, we're addressing a key problem in the housing market: The supply of homes now exceeds demand. And as a result, home values have declined. Once supply and demand balance out, our housing market will be able to recover -- and that will help our broader economy begin to grow.

Fifth, we've seen that problems in the financial system are not isolated to the United States. They're also affecting other nations around the globe. So we're working closely with partners around the world to ensure that our actions are coordinated and effective. Tomorrow, I'll meet with the finance ministers from our partners in the G7 and the heads of the International Monetary Fund and World Bank. Secretary Paulson will also meet with finance ministers from the world's 20 leading economies. Through these efforts, the world is sending an unmistakable signal: We're in this together, and we'll come through this together.

And finally, American businesses and consumers are struggling to obtain credit, because banks do not have sufficient capital to make loans. So my administration worked with Congress to quickly pass a $700 billion financial rescue package. This new law authorizes the Treasury Department to use a variety of measures to help bank [sic] rebuild capital -- including buying or insuring troubled assets and purchasing equity of financial institutions. The Department will implement measures that have maximum impact as quickly as possible. Seven hundred billion dollars is a significant amount of money. And as we act, we will do it in a way that is effective.

The plan we are executing is aggressive. It is the right plan. It will take time to have its full impact. It is flexible enough to adapt as the situation changes. And it is big enough to work.

The federal government will continue to take the actions necessary to restore stability to our financial markets and growth to our economy. We have an outstanding economic team carrying out this effort, led by Secretary of the Treasury Hank Paulson, Federal Reserve Chairman Ben Bernanke, SEC Chairman Chris Cox, and FDIC Chair Sheila Bair. I thank them and their dedicated teams for their service during this important moment in our country's history.

This is an anxious time, but the American people can be confident in our economic future. We know what the problems are, we have the tools we need to fix them, and we're working swiftly to do so. Our economy is innovative, industrious and resilient because the American people who make up our economy are innovative, industrious and resilient. We all share a determination to solve this problem -- and that is exactly what we're going to do. May God bless you.

END

Commentary:

Not to really impugn US President George W. Bush, but this is a reminder of historical speech's before and during the 1930’s Great Depression.

Furthermore, Bush does seem to be a bit of out of touch on certain economic elements of what is happening and seems to lack certain knowledge or something appears to be missing.

Bushonomics: US stocks extend huge losses over credit concerns

Trader Robert Baxter, left, works on the floor of the New York Stock Exchange, on Friday 10 October 2008.

10 October 2008
By TIM PARADIS

NEW YORK -Wall Street extended its devastating losses Friday, but prices swung sharply as investors scooped up some shares decimated by more than a week of intense and panicked selling. The Dow Jones industrials, down nearly 700 points in the opening minutes of trading, recovered to an advance of more than 100 before turning sharply lower again, and the other major indexes fluctuated widely as well.

Frozen credit markets and a loss of confidence in the world's financial system have caused the Dow to drop 21 percent in just 10 trading days. The blue chip index tumbled 678 points Thursday, and is heading to its worst weekly point drop, and one of its biggest weekly percentage drops, since being created 112 years ago.

Friday's gyrations were likely exacerbated by the computer-driven "buy" orders that kicked in when prices fell far enough to make some stocks — including the pummeled financial stocks — look like attractive bets. But that buying didn't necessarily reflect an easing of the market's deep despair, and so the heavy selling generally continued.

"Fear has been running rampant all over the Street. Fear and greed, that's what rules the Street. I think the carcass has been stripped to the bone," said Dave Henderson, a floor trader on the New York Stock Exchange for Raven Securities Corp.

"The mood, it swings with the market. When we went positive, the euphoria down there was awesome. It's like at a football game," he said.

While the market's declines were sharp Friday, some of the selling pressure appeared to ease after the steep drop at the open. Still, many investors have waited until the final hour of trading each day this week to hit the "sell" button, so investors appeared uneasy about how the market would look at 4 p.m., when the closing bell sounds.

At the start of Friday's session, losses for the year totaled a staggering $8.3 trillion, as measured by the Dow Jones Wilshire 5000 Composite Index, which tracks 5,000 U.S.-based companies representing nearly all stocks traded in the U.S.

In midday trading, the Dow fell 388.53, or 4.53 percent, to 8,190.66. At its low point Friday, the Dow was at 7,882.51, just 60 points above its low in Wall Street's last bear market, 7,286.27, reached Oct. 9, 2002.

Broader stock indicators also fell. The Standard & Poor's 500 index declined 55.64, or 6.11 percent, to 854.28, while the Nasdaq composite index fell 75.59, or 4.59 percent, 1,569.53.

About 200 stocks advanced while about 3,000 declined on the New York Stock Exchange, where volume came to a heavy 1.08 billion shares.

Investors continue to shift money into safer investments, most of it going into the government bond market. The yield on the three-month Treasury bill plunged to 0.28 percent from 0.58 percent late Thursday. That suggests that demand for T-bills, regarded by investors as the safest assets around, remains high.

Longer-term Treasury yields moved higher as investors moved into shorter term issues. The yield on the benchmark 10-year note rose to 3.87 percent from 3.76 percent late Thursday.

Gold prices climbed $7.60 to $894.10 an ounce on the New York Mercantile Exchange, while oil prices fell. A barrel of light, sweet crude declined $6.45 to $80.14 a barrel on the Nymex.

Jack Ablin, chief investment officer at Harris Private Bank, said some investors are fearful of placing bets before the market shakes out for fear they will exacerbate their losses.

"You don't want to get hit by a train," he said. "This is now about market psychology. There's extreme fear and panic out there."

President Bush said Friday the government's efforts to rescue the financial sector was powerful enough to succeed but that it would take some time to be fully implemented.

His remarks came as finance ministers and central bankers from the Group of Seven nations gathered Friday in Washington to discuss the economic meltdown. One of the potential remedies expected to be reviewed at the meeting is for governments to guarantee lending between banks.

Central banks around the world were forced to cut interest rates this week after continuing problems in the credit market triggered concerns that banks will run out of money. Analysts have described the mood on trading floors as panicked, with investors bailing out of stocks on fears there is no end in sight to the financial carnage.

A stream of selling forced exchanges in Austria, Russia and Indonesia to suspend trading, and those that remained opened were hammered. The rout in Australian markets caused traders there to call it "Black Friday."

European stocks sank, with Britain's FTSE-100 down 8.14 percent, German's DAX down 7.6 percent, and France's CAC-40 down 7.7 percent. In Asia, the collapse of Japan's Yamato Life Insurance caused already nervous investors to pull even more money out of the market — the Nikkei 225 fell 9.6 percent.

Prospects of further government help and, perhaps, attractive prices helped the financial sector show some signs of life Friday. Big national banks were among the gainers, including Bank of America Corp., which rose $1.14, or 5.8 percent, to $20.77. Some smaller banks also rose, including Fifth Third Bank Corp., which rose 19 cents, or 2 percent, to $9.92.

Not all financials were enjoying a bounce, however. Morgan Stanley Inc. fell $4.41, or 35 percent, to $8.04 as investors worried that even with a major investment from Japan's Mitsubishi UFJ Financial Group. Meanwhile, Goldman Sachs Group Inc. fell $19.25, or 19 percent, to $82.10.

Citigroup Inc. said late Thursday it was suspending its bid to acquire Wachovia Corp., which will be acquired by Wells Fargo & Co. Citigroup rose 57 cents, or 4.4 percent, to $13.50, while Wells Fargo jumped 65 cents, or 2.4 percent, to $27.90. Wachovia surged $1.25, or 35 percent, to $4.85.

General Electric Co., a bellwether for the U.S. economy and a company with a large financial operation, reported that its third-quarter earnings sank 22 percent. The conglomerate, one of the 30 companies that make up the Dow industrials, blamed the drop on more losses in its financing business, though earnings for the company met Wall Street projections. GE rose 19 cents, or 1 percent, to $19.20.

Energy stocks fell sharply again Friday after leading the market lower Thursday. The drop in oil and tightness in credit fed investors' worries about the sector. Exxon Mobil Corp. fell $8.70, or 13 percent, to $59.30, while Chevron Corp. fell $5.21, or 8.1 percent, to $58.79.

The Chicago Board Options Exchange's volatility index, known as the VIX, and often referred to as the "fear index," surged above 70 early Friday, a record high.

Wall Street also digested fresh economic data. The U.S. trade deficit edged down slightly in August, reflecting a drop in foreign oil from record levels. But the politically sensitive deficit with China increased as imports from that country hit an all-time high.

The Russell 2000 index of smaller companies fell 19.27, or 3.86 percent, to 479.93.

___

On the Net:

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

Wild swings drive morning trading (Video)

A Modest Royal Dwelling

By HRM Deborah

It has became a great interested to people of the type of dwelling I am living and it is due to the fact that after Hurricane Katrina, finding a place to live was very difficult; especially if one was going to have to pay and arm, a leg and about two pints of blood each month, to live in certain places.

As well as some of these dwellings, also may not have been particularly livable at the time; either.

Myself, because of my political hostage status, the US government doesn’t allow me to have an income from my home country and also due to the fact I have always believed in living modestly and have had to learn to do so.

I call this particular place a dwelling, because this country is not my home; but at this time the place of my imprisonment and to my sorrow, I have been reminded of this fact numerous times.

So I do hope this help’s people to understand, my particular living situation and my deep sadness that relations couldn‘t have been better over the years, between the US and the Palestine royal family; to create something as to imprison a family for over 108 years or three generations.

The Bridge Who Went Pink

The light rail bridge designed by Spanish architect Santiago Calatrava is seen lit up in pink for breast cancer awareness in Jerusalem, on 6 October 2008.

One should actually be aware of not just breast cancer, but other forms of this horrendous disease and eradicate it to save lives.

I have seen numerous times the effects of different forms of cancer has on people and it is not just heartbreaking, but the fact in some cases; it was also found to have been avoidable.- HRM Deborah

Bushonomics: US stocks swing sharply in early trading

Specialist Justin Bohan holds his head as he works at his post on the floor of the New York Stock Exchange, on 9 October 2008.

8 October 2008
By JOE BEL BRUNO

NEW YORK -Stock prices swung sharply in early trading Friday as investors again dumped stocks but also scooped up shares that have been devastated by more than a week of intense and panicked selling. The Dow Jones industrials, down nearly 700 points in the opening minutes of trading, recovered to a loss of just over 125 and then headed lower again.

Frozen credit markets and a loss of confidence in the world's financial system have caused the Dow to drop 21 percent in just 10 trading days. The blue chip index tumbled 678 points Thursday, and is heading to its worst weekly point drop, and one of its biggest weekly percentage drops, since being created 112 years ago.

Friday's gyrations were likely caused the computer-driven "buy" orders that kicked in when prices had fallen far enough to make some stocks look like attractive bets. But that buying reflected no lifting of the market's deep despair, and selling continued.

"Momentum is running against the market and you don't want to get hit by a train," said Jack Ablin, chief investment officer at Harris Private Bank. "This is now about market psychology. There's extreme fear and panic out there."

At the start of Friday's session, losses for the year totaled a staggering $8.3 trillion, as measured by the Dow Jones Wilshire 5000 Composite Index, which tracks 5,000 U.S.-based companies representing almost all stocks traded in the U.S.

A stream of selling forced exchanges in Austria, Russia and Indonesia to suspend trading, and those that remained opened were hammered. The rout in Australian markets caused traders there to call it "Black Friday."

European stocks sank, with Britain's FTSE-100 down 8.09 percent, German's DAX down 9.4 percent, and France's CAC-40 down 9.7 percent. In Asia, the collapse of Japan's Yamato Life Insurance caused already nervous investors to pull even more money out of the market — the Nikkei 225 fell 9.6 percent.

The Dow fell 242 points to the 8,336 level. The Standard & Poor's 500 index was off 2.87 percent, while the Nasdaq composite index was down 1.16 percent.

Video: Will the stock market crash?

Commentary:
As to the question of the stock market crashing, the answer is yes and at anytime, as to the focus of where it stands in the current situation; for it has all the earmarks of an historical repeat of "Black Tuesday 1929. "

What is making some people to have extreme anxiety is not just the stock market coming extremely close to crashing or the current personal economic problems, it is felt it is the fact some economist have commented this coming economic depression will make the 1930’s Great Depression; seem like a sunny day walk in the park.

The Pakistani Long Road for Peace

Armed Pakistani people patrol along with the Pakistani military against US military attacks in Mamoon Khataki Shabqader on the border of the tribal district of Mohmand Agency, on 9 October 2008.

The local populations have been working hard to stop US attacks on civilians, not the alleged idea of flushing out Taliban and Al-Qaeda linked terrorist’s from their areas; as US media propaganda would have one believe.

The Pakistani people are diligently trying not to be a victim of US genocide, as what is further occurring in such places as Afghanistan and Iraq; it was reported.

A Sadr City Martyr

Heads of Iraqi Shia tribes and some Sadrist members of parliament walk in front of the coffin of Iraqi anti-US Sadrist MP Saleh al-Okaili (al-Ogayly) as it is taken through the streets of Baghdad, on 10 October 2008; on its was to be buried in Najaf.

Okaili (Ogayly) who was assassinated in an US bomb attack yesterday, in Baghdad's Shia neighborhood in Sadr City.

Iraq is also to see an accelerated rise in US led violence towards the Iraq people, before the US November elections.

Sitting in the Shade and Waiting for the Sun

A Palestinian boy sits in the shade under a cart as Palestinian Muslims make their way to the Al-Aqsa Masjid (Mosque) compound for the Friday noon prayer, in Jerusalem; on 10 October 2008.

While security is tight because of Canaanite terrorism, Muslim and Jewish Palestinians are doing what they can to try and have a normal life.

Ayatollah Kashani: Tehran emphasizes on its absolute N-rights

10 October 2008

Tehran-Substitute Friday prayers leader of Tehran Ayatollah Mohammad Emami Kashani said here Friday that Tehran insists on its absolute nuclear rights.

"Enemies can not reach their goals by launching adverse propaganda against Iran's peaceful nuclear program and Tehran insists on its absolute nuclear rights," Ayatollah Kashani told a group of Tehrani Friday prayers worshipers.

He said the Islamic Republic of Iran has repeatedly announced that it does not consider nuclear weapons something right.

"The Islamic Republic of Iran has on various occasions proved its goodwill to its neighbors and the International Atomic Energy Agency too has inspected all its nuclear activities and detected nothing that would prove its nuclear energy is not industrial and scientific scale," said Ayatollah Kashani.

He went on to say, "The world arrogance, led by the US, however, has through adverse publicity attributed such dirty labels and features as "terrorist," "opponent to regional security" and "troublesome for neighboring states," to Iran. This is while, the Islamic Republic of Iran has shown that is the most sincere neighbor, is not pro-terrorism and is even a terrorism victim."

To substantiate his remarks, the Ayatollah said Iran's former President, ex-Prime Minister and ex-judiciary as well as a number of Majlis members, renowned thinker Martyr Morteza Motahhari and many other dear ones were all martyred by terrorists.

He recalled the eight-year (1980-88) war imposed on Iran by former Iraqi ruler Saddam and also historically unforgettable crimes and said, "These actions are done by you. However, you sometimes attribute them to Iran, sometimes to Islam and even sometimes to holy Prophet of Islam (SAWA). These are gestures of disrespect. There may be some who accept your adverse propaganda but there may even be many others who will reject it. You should know that you will not meet your goal through such negative publicity."

He reiterated, "Tehran insists on having industrial and scientific scale peaceful nuclear energy. This is Iranian nation's right. That's God pleasing, rational, legal and globally accepted claim. Since you have nothing to say with regards to such a right claim, so have launched adverse publicity, thinking vainly that such propaganda will help you reach your target."

He said, "You should know for sure that the path you have chosen will lead you nowhere and you will go astray. Reverse the path and step in the right course. Don't let this part of the world or other part get tumultuous this way and stop leaving black records in history."