From USA Today:
President Bush announced a series of "limited" steps Friday designed to help homeowners struggling to pay their mortgages, expanding the role of the Federal Housing Administration and proposing a temporary change in tax law to prevent people from being penalized when they refinance risky "subprime" adjustable-rate mortgages.
Under Bush's proposal, an estimated 80,000 homeowners with bruised credit and subprime ARMs they can no longer afford will be able to refinance loans, which the Federal Housing Administration (FHA) would insure.
The move marks a historic expansion of the role of the FHA, a Depression-era agency that has traditionally served low- and moderate-income families and first-time buyers, but not delinquent borrowers. Nearly 16% of subprime borrowers are behind on their ARMs, and an estimated 2 million subprime ARMs totaling about $600 billion will reset to higher rates through the end of next year.
To qualify for the new benefit, homeowners would have to prove they paid their loan on time before it reset to a higher rate and must have at least 3% equity in the home.
Under current rules, the maximum loan the FHA can guarantee is $202,000 in most states and up to $362,000 in high-cost states such as California and New York.
Bush also called on Congress to pass his proposal to reform the FHA, in part by raising those loan limits to $262,000 in most states and $417,000 in pricier areas.
Friday, August 31, 2007
GDP GROWTH SOLID IN SECOND QUARTER
From Action Economics via BusinessWeek:
For the preliminary U.S. second-quarter GDP report, the figures revealed an upward bump to growth of 4.0% from the 3.4% advance estimate released in July. The median forecast of economists surveyed by Action Economics was for an upward revision to 4.1%.
GDP growth averaged 2.3% through the first half of 2007, and we continue to expect a 2.8% pace in the third quarter. August economic data will be watched closely for clues as to the impacts of current financial dislocation, and we have thus far marked down our fourth-quarter GDP estimate to 2.8% in response to these effects. But solid growth up to August will provide a floor to any revisions to third-quarter growth, as will the strong GDP component mix that has boosted third-quarter prospects.
For the preliminary U.S. second-quarter GDP report, the figures revealed an upward bump to growth of 4.0% from the 3.4% advance estimate released in July. The median forecast of economists surveyed by Action Economics was for an upward revision to 4.1%.
GDP growth averaged 2.3% through the first half of 2007, and we continue to expect a 2.8% pace in the third quarter. August economic data will be watched closely for clues as to the impacts of current financial dislocation, and we have thus far marked down our fourth-quarter GDP estimate to 2.8% in response to these effects. But solid growth up to August will provide a floor to any revisions to third-quarter growth, as will the strong GDP component mix that has boosted third-quarter prospects.
Thursday, August 30, 2007
HELMSLEY'S DOG $12 MILLION, TWO OF FOUR GRANDKIDS $0
From USA Today:Leona Helmsley's dog will continue to live an opulent life, and then be buried alongside her in a mausoleum. But two of Helmsley's grandchildren got nothing from the late luxury hotelier and real estate billionaire's estate.
Helmsley left her beloved white Maltese, named Trouble, a $12 million trust fund, according to her will, which was made public Tuesday in surrogate court.
She also left millions for her brother, Alvin Rosenthal, who was named to care for Trouble in her absence, as well as two of four grandchildren from her late son Jay Panzirer — so long as they visit their father's grave site once each calendar year.
Otherwise, she wrote, neither will get a penny of the $5 million she left for each.
Helmsley left nothing to two of Jay Panzirer's other children — Craig and Meegan Panzirer — for "reasons that are known to them," she wrote.
AN APPLE iCAR?
From USA Today:
U.S. computer company Apple and German automaker Volkswagen are discussing the possibility of building an "iCar" which would feature products by the producer of the ubiquitous iPod personal music player.
Apple CEO Steve Jobs and Volkswagen's chief Martin Winterkorn met several days ago in California, and plan to meet for further discussions, said Hans-Gerd Bode, a spokesman for VW.
There are "scores of ideas," but few concrete plans at this point, Bode said.
Market experts estimate that a compact car upgraded with Apple products would be of substantial interest to young target groups, according to German financial magazine Capital.
Electronics, ranging from satellite navigation machines to cup warmers, are increasingly a selling point for automakers.
Ford Motor, for instance, will debut this fall an in-car communication and entertainment system developed with Microsoft that will cost $395 as an option.
The system, called Sync, allows drivers, using either voice recognition or steering wheel controls, to listen to their digital music players and have text messages on their cellphones read aloud.
U.S. computer company Apple and German automaker Volkswagen are discussing the possibility of building an "iCar" which would feature products by the producer of the ubiquitous iPod personal music player.
Apple CEO Steve Jobs and Volkswagen's chief Martin Winterkorn met several days ago in California, and plan to meet for further discussions, said Hans-Gerd Bode, a spokesman for VW.
There are "scores of ideas," but few concrete plans at this point, Bode said.
Market experts estimate that a compact car upgraded with Apple products would be of substantial interest to young target groups, according to German financial magazine Capital.
Electronics, ranging from satellite navigation machines to cup warmers, are increasingly a selling point for automakers.
Ford Motor, for instance, will debut this fall an in-car communication and entertainment system developed with Microsoft that will cost $395 as an option.
The system, called Sync, allows drivers, using either voice recognition or steering wheel controls, to listen to their digital music players and have text messages on their cellphones read aloud.
Wednesday, August 29, 2007
WAGES INCREASING IN CHINA
From The New York Times:
Chinese wages are on the rise. No reliable figures for average wages exist; the government’s economic data are notably unreliable. But factory owners and experts who monitor the nation’s labor market say that businesses are having a hard time finding able-bodied workers and are having to pay the workers they can find more money.
Chinese officials are quick to say that there is no overall shortage of labor — rather, there is a shortage of young workers willing to accept the low wages that prevailed in the 1990s. Factories in cities like Guangzhou advertise heavily for young workers, even while employment offices consider it a success if someone over 40 can find any job in less than a year.
“Now they’re taking workers into their early 30s,” said Jonathan Unger, director of the Contemporary China Center at Australian National University in Canberra, “but anything older than that and they think they can’t take the conditions, the 11-hour days,” as well as work on weekends, and a tedious life in factory-owned dormitories.
This lack of laborers of desirable age is hardly making China a worker’s paradise. Factory wages remain extremely low by Western standards: roughly $1 an hour for better-paid workers near the coast, compared with as little as 50 cents early this decade.
Moreover, labor regulation is weak in China, as shown most vividly this year by the discovery that brick kilns in the north of the country had kidnapped and enslaved hundreds of children and mentally disadvantaged adults, working them under brutal conditions with little or no pay.
And wages are stagnating in the middle of the labor market — workers who consider themselves too educated for entry-level jobs in a garment factory, but lacking the skills or experience to command a premium salary elsewhere. “It’s easy to find a job with not a very high salary,” said Chen Zheng, a 24-year-old auto worker and high school graduate in Ningbo. “It’s not easy if you want a higher wage.”
Chinese wages are on the rise. No reliable figures for average wages exist; the government’s economic data are notably unreliable. But factory owners and experts who monitor the nation’s labor market say that businesses are having a hard time finding able-bodied workers and are having to pay the workers they can find more money.
Chinese officials are quick to say that there is no overall shortage of labor — rather, there is a shortage of young workers willing to accept the low wages that prevailed in the 1990s. Factories in cities like Guangzhou advertise heavily for young workers, even while employment offices consider it a success if someone over 40 can find any job in less than a year.
“Now they’re taking workers into their early 30s,” said Jonathan Unger, director of the Contemporary China Center at Australian National University in Canberra, “but anything older than that and they think they can’t take the conditions, the 11-hour days,” as well as work on weekends, and a tedious life in factory-owned dormitories.
This lack of laborers of desirable age is hardly making China a worker’s paradise. Factory wages remain extremely low by Western standards: roughly $1 an hour for better-paid workers near the coast, compared with as little as 50 cents early this decade.
Moreover, labor regulation is weak in China, as shown most vividly this year by the discovery that brick kilns in the north of the country had kidnapped and enslaved hundreds of children and mentally disadvantaged adults, working them under brutal conditions with little or no pay.
And wages are stagnating in the middle of the labor market — workers who consider themselves too educated for entry-level jobs in a garment factory, but lacking the skills or experience to command a premium salary elsewhere. “It’s easy to find a job with not a very high salary,” said Chen Zheng, a 24-year-old auto worker and high school graduate in Ningbo. “It’s not easy if you want a higher wage.”
APPLE INTRODUCING NEW iPODS SEPTEMBER 5TH?
From Reuters:
Apple Inc shares rose more than 4.5 percent on Wednesday, fueled by excitement over the pending launch of new iPod digital music players, which could entice current users to buy upgraded models.
The stock climbed $5.74 to $132.56 in early trading on the Nasdaq, after Apple distributed invitations to a September 5 event in San Francisco. Goldman Sachs said in a note to clients that the date would bring "the almost certain launch of a new family of iPods."
"The product announcement is likely to include a full line-up of revamped iPods with significantly greater functionality at current price points, including the much-anticipated full-screen video iPod," Goldman said.
Goldman recommended clients buy Apple shares, saying the next video iPod could drive "an accelerated upgrade cycle."
Apple shares are up about 55 percent this year, driven by the steady strength of the iPod, which dominates the portable music player market, and the late June launch of the iPhone.
Apple Inc shares rose more than 4.5 percent on Wednesday, fueled by excitement over the pending launch of new iPod digital music players, which could entice current users to buy upgraded models.
The stock climbed $5.74 to $132.56 in early trading on the Nasdaq, after Apple distributed invitations to a September 5 event in San Francisco. Goldman Sachs said in a note to clients that the date would bring "the almost certain launch of a new family of iPods."
"The product announcement is likely to include a full line-up of revamped iPods with significantly greater functionality at current price points, including the much-anticipated full-screen video iPod," Goldman said.
Goldman recommended clients buy Apple shares, saying the next video iPod could drive "an accelerated upgrade cycle."
Apple shares are up about 55 percent this year, driven by the steady strength of the iPod, which dominates the portable music player market, and the late June launch of the iPhone.
GASOLINE SUPPLY AT RECORD LOW
From USA Today:
U.S. gasoline supplies are the lowest level ever recorded in terms of demand, just 20 days of average fuel consumption, the Energy Information Administration said Wednesday.
"This is even fewer days than seen following the hurricanes in 2005," the EIA said in its weekly review of the oil market. "While the absolute level of total gasoline inventories has been slightly lower a few times in recent years, when the level of demand is taken into account, it has not been this low before."
The low gasoline inventory will not likely cause a sharp spike in retail fuel prices, but will limit the usual decline in pump prices after this weekend's Labor Day holiday, the EIA said.
U.S. gasoline supplies are the lowest level ever recorded in terms of demand, just 20 days of average fuel consumption, the Energy Information Administration said Wednesday.
"This is even fewer days than seen following the hurricanes in 2005," the EIA said in its weekly review of the oil market. "While the absolute level of total gasoline inventories has been slightly lower a few times in recent years, when the level of demand is taken into account, it has not been this low before."
The low gasoline inventory will not likely cause a sharp spike in retail fuel prices, but will limit the usual decline in pump prices after this weekend's Labor Day holiday, the EIA said.
Tuesday, August 28, 2007
ILLINOIS STATE UNIVERSITY DRESS CODE
From the Peoria Journal Star:
The College of Business at Illinois State University is taking aim at images of pajama-wearing students with backwards hats.
Starting next week, students majoring in marketing or business teacher education will have to wear business casual attire to class or risk being sent home for the day.
While many business schools at colleges and universities encourage students to dress up for interviews and meetings, not many require a dress code in class. ISU officials implemented this code, they say, as a way to give their students an edge in the professional world.
The marketing department began testing the dress code in select classes in 2003, and last fall, all students in the professional sales sequence were required to dress in business casual attire to class.
"I have noticed in my interactions with these students that when they come dressed in business attire, they look like they are ready to do serious work. They are attentive, they're courteous and have a sense of confidence about them," said Amy Humphreys, assistant to the dean for constituent relations.
The College of Business at Illinois State University is taking aim at images of pajama-wearing students with backwards hats.
Starting next week, students majoring in marketing or business teacher education will have to wear business casual attire to class or risk being sent home for the day.
While many business schools at colleges and universities encourage students to dress up for interviews and meetings, not many require a dress code in class. ISU officials implemented this code, they say, as a way to give their students an edge in the professional world.
The marketing department began testing the dress code in select classes in 2003, and last fall, all students in the professional sales sequence were required to dress in business casual attire to class.
"I have noticed in my interactions with these students that when they come dressed in business attire, they look like they are ready to do serious work. They are attentive, they're courteous and have a sense of confidence about them," said Amy Humphreys, assistant to the dean for constituent relations.
Monday, August 27, 2007
EBERT GIVES DISNEY NEGOTIATORS THUMBS DOWN
From The Wall Street Journal's The Evening Wrap:Film critic Roger Ebert may ban the use of thumbs on his show ""At the Movies with Ebert & Roeper." Mr. Ebert holds a copyright on the "thumbs-up" or "thumbs-down" gesture with which reviewers on the show judge each film. Thumb positioning has become a staple of movie marketing and, in turn, a big part of the show's influence. In his frustration over contract negotiations with Disney-ABC Domestic Television, his show's distributor, the critic allegedly exercised his right to block thumb-based film assessment until he receives a better offer. Mr. Ebert hasn't appeared on the show in over a year after struggling with health problems, but guest critics had kept the thumb tradition alive. The two sides disagree on who actually enacted the thumb ban -- with Mr. Ebert blaming Disney, and Disney pointing the finger at Mr. Ebert -- but two episodes have already been filmed without opposable digits.
MORE BAD NEWS FOR HOUSING MARKET
From USA Today:
Sales of existing homes dropped for a fifth straight month in July, falling to the slowest annual pace in nearly five years, while home prices fell for a record 12th consecutive month.
The National Association of Realtors reported that sales of existing homes dipped 0.2% last month to a seasonally adjusted annual rate of 5.75 million units.
The median price of a home sold last month slid to $230,200, down 0.6% from the median price a year ago. It marked the 12th consecutive month that home prices have declined compared with a year ago, an all-time high.
The inventory of homes for sale rose 5.1% to 4.59 million, representing 9.6 months worth of supply at the current sales pace.
Sales of existing homes dropped for a fifth straight month in July, falling to the slowest annual pace in nearly five years, while home prices fell for a record 12th consecutive month.
The National Association of Realtors reported that sales of existing homes dipped 0.2% last month to a seasonally adjusted annual rate of 5.75 million units.
The median price of a home sold last month slid to $230,200, down 0.6% from the median price a year ago. It marked the 12th consecutive month that home prices have declined compared with a year ago, an all-time high.
The inventory of homes for sale rose 5.1% to 4.59 million, representing 9.6 months worth of supply at the current sales pace.
ACER TO BUY GATEWAY
From USA Today:
Taiwan's Acer will buy Gateway for $710 million, creating the world's No. 3 PC maker and doubling its U.S. presence while dealing a blow to rival Lenovo's efforts to grow in Europe.
Lenovo's plans were set back when Gateway said Monday that it would exercise its right to take a first attempt at buying the parent of European-focused PC maker Packard Bell.
The Chinese PC giant has said it was in talks to buy Paris-based Packard Bell, hoping to expand its presence in a European consumer market where it is relatively weak.
Acer said the merger would create a company with more than $15 billion in sales and 20 million PCs shipped per year, adding it would keep the Gateway brand in the United States.
On a worldwide basis, the tie-up would help Acer — Taiwan's most recognized global brand — displace Lenovo.
Lenovo — one of a handful of Chinese firms trying to forge a global brand by investing abroad — dropped to global fourth place in the first three months of 2007 but has now reclaimed the No. 3 slot from Acer in a closely fought battle.
The deal is expected to be completed by December and the merged company would still be a distant third in the United States, behind No. 2 Hewlett-Packard at 23.6% and market leader Dell at 28.4%, according to IDC.
A merged Acer and Gateway would have sold about 18.6 million PCs worldwide last year, or about 8% of global sales, compared to Dell's 39.1 million units, Hewlett-Packard's 38.8 million and Lenovo's 16.6 million, according to IDC.
Taiwan's Acer will buy Gateway for $710 million, creating the world's No. 3 PC maker and doubling its U.S. presence while dealing a blow to rival Lenovo's efforts to grow in Europe.
Lenovo's plans were set back when Gateway said Monday that it would exercise its right to take a first attempt at buying the parent of European-focused PC maker Packard Bell.
The Chinese PC giant has said it was in talks to buy Paris-based Packard Bell, hoping to expand its presence in a European consumer market where it is relatively weak.
Acer said the merger would create a company with more than $15 billion in sales and 20 million PCs shipped per year, adding it would keep the Gateway brand in the United States.
On a worldwide basis, the tie-up would help Acer — Taiwan's most recognized global brand — displace Lenovo.
Lenovo — one of a handful of Chinese firms trying to forge a global brand by investing abroad — dropped to global fourth place in the first three months of 2007 but has now reclaimed the No. 3 slot from Acer in a closely fought battle.
The deal is expected to be completed by December and the merged company would still be a distant third in the United States, behind No. 2 Hewlett-Packard at 23.6% and market leader Dell at 28.4%, according to IDC.
A merged Acer and Gateway would have sold about 18.6 million PCs worldwide last year, or about 8% of global sales, compared to Dell's 39.1 million units, Hewlett-Packard's 38.8 million and Lenovo's 16.6 million, according to IDC.
$100 BILL GETTING MAKEOVER
Counterfeiting is a huge problem for the United States. It isn't just criminals who do it, but foreign governments have been suspected of producing counterfeit U.S. currency, as well. After reading the story below, check out this one about North Korea counterfeiting U.S. $100 bills.
AP story from MSNBC.com:
After six decades in which the venerable greenback never changed its look, the U.S. currency has undergone a slew of makeovers. The most amazing is yet to come.
A new security thread has been approved for the $100 bill, The Associated Press has learned, and the change will cause double-takes.
The new look is part of an effort to thwart counterfeiters who are armed with ever-more sophisticated computers, scanners and color copiers. The C-note, with features the likeness of Benjamin Franklin, is the most frequent target of counterfeiters operating outside the United States.
The operation of the new security thread looks like something straight out of the Hogwarts School of Witchcraft and Wizardry. This magic, however, relies on innovations produced from decades of development.
It combines micro-printing with tiny lenses _ 650,000 for a single $100 bill. The lenses magnify the micro-printing in a truly remarkable way.
Move the bill side to side and the image appears to move up and down. Move the bill up and down and the image appears to move from side to side.
"It is a really complex optical structure on a microscopic scale. It makes for a very compelling high security device," said Douglas Crane, a vice president at Crane & Co. The Dalton, Mass-based company has a $46 million contract to produce the new security threads.
Larry Felix, director of the Bureau of Engraving and Printing, confirmed details about the security thread in an AP interview.
The redesign of the $100 is about one-third of the way complete. The bill is expected to go into circulation late next year.
The $100 bill represents more than 70 percent of the $776 billion in currency in circulation, two-thirds of which is held overseas.
"Counterfeiting is becoming highly organized and highly efficient," Felix said. He said some clandestine printing plants in Latin America and Eastern Europe have been caught counterfeiting not only the U.S. currency but other countries' notes.
The government says $118.1 million in counterfeit U.S. currency was detected in 2006, an increase of 3.8 percent from 2005.
AP story from MSNBC.com:
After six decades in which the venerable greenback never changed its look, the U.S. currency has undergone a slew of makeovers. The most amazing is yet to come.
A new security thread has been approved for the $100 bill, The Associated Press has learned, and the change will cause double-takes.
The new look is part of an effort to thwart counterfeiters who are armed with ever-more sophisticated computers, scanners and color copiers. The C-note, with features the likeness of Benjamin Franklin, is the most frequent target of counterfeiters operating outside the United States.
The operation of the new security thread looks like something straight out of the Hogwarts School of Witchcraft and Wizardry. This magic, however, relies on innovations produced from decades of development.
It combines micro-printing with tiny lenses _ 650,000 for a single $100 bill. The lenses magnify the micro-printing in a truly remarkable way.
Move the bill side to side and the image appears to move up and down. Move the bill up and down and the image appears to move from side to side.
"It is a really complex optical structure on a microscopic scale. It makes for a very compelling high security device," said Douglas Crane, a vice president at Crane & Co. The Dalton, Mass-based company has a $46 million contract to produce the new security threads.
Larry Felix, director of the Bureau of Engraving and Printing, confirmed details about the security thread in an AP interview.
The redesign of the $100 is about one-third of the way complete. The bill is expected to go into circulation late next year.
The $100 bill represents more than 70 percent of the $776 billion in currency in circulation, two-thirds of which is held overseas.
"Counterfeiting is becoming highly organized and highly efficient," Felix said. He said some clandestine printing plants in Latin America and Eastern Europe have been caught counterfeiting not only the U.S. currency but other countries' notes.
The government says $118.1 million in counterfeit U.S. currency was detected in 2006, an increase of 3.8 percent from 2005.
Saturday, August 25, 2007
CHINESE GOVERNMENT DECLARES "WAR" ON TAINTED FOOD, DRUGS, AND EXPORTS
From Reuters:
China has launched a four-month "war" on tainted food, drugs and exports, state media reported on Friday, as beleaguered officials embraced time-tested campaign tactics to clean up the country's battered image.
Chinese Vice Premier Wu Yi told officials that the campaign, to run to the end of the year, would focus on problem products that have corroded domestic and foreign consumers' confidence in the "made in China" label.
"This is a special battle to protect the health and personal interests of the public and to protect the reputation of Chinese goods and the national image," Wu said, according to the government Web site (www.gov.cn).
She called the campaign a "stern political task" -- a reminder that officials' careers may be on the line.
Wu announced targets to clean up pig slaughtering, restaurants and canteens, pesticide use, food additives and the country's vital exports. "In some businesses the management level is low, production conditions are poor, quality levels and standards are low, and reliability is weak," she said.
Local officials may not share Wu's determination to move so fast, said the China Daily.
"Building an omnipresent monitoring and guarantee mechanism will prove a challenging mission for a four-month campaign," the paper said.
China has launched a four-month "war" on tainted food, drugs and exports, state media reported on Friday, as beleaguered officials embraced time-tested campaign tactics to clean up the country's battered image.
Chinese Vice Premier Wu Yi told officials that the campaign, to run to the end of the year, would focus on problem products that have corroded domestic and foreign consumers' confidence in the "made in China" label.
"This is a special battle to protect the health and personal interests of the public and to protect the reputation of Chinese goods and the national image," Wu said, according to the government Web site (www.gov.cn).
She called the campaign a "stern political task" -- a reminder that officials' careers may be on the line.
Wu announced targets to clean up pig slaughtering, restaurants and canteens, pesticide use, food additives and the country's vital exports. "In some businesses the management level is low, production conditions are poor, quality levels and standards are low, and reliability is weak," she said.
Local officials may not share Wu's determination to move so fast, said the China Daily.
"Building an omnipresent monitoring and guarantee mechanism will prove a challenging mission for a four-month campaign," the paper said.
Thursday, August 23, 2007
CRAMER'S MAD MONEY = CRAMER'S BAD ADVICE?
CNBC crazy man Jim Cramer who made millions in the 1980s and 1990s with his hedge fund rolls up his sleaves, beats his chest, and makes seemingly thousands of stock picks 
per show on Mad Money, but Barron's reports that Cramer's picks overall do not beat the S&P 500.
From Barron's August 20th edition:
"Over the past two years, viewers holding Cramer's stocks would be up 12% while the Dow rose 22% and the S&P 500 16%, according to a record of 1,300 of the CNBC star's Buy recommendations compiled by YourMoneyWatch.com, a Website run by a retired stock analyst and loyal Cramer-watcher."
"We also looked at a database of Cramer's Mad Money picks maintained by his Website, TheStreet.com. It covers only the past six months, but includes an astounding 3,458 stocks - Buys mainly, punctuated by some Sells. These picks were flat to down in relation to the market. Count commissions and you would have been much better off in an index fund that simply tracks the market."
After an initial day-after 2% pop for Cramer's picks, the stocks "usually moved sideways or down for the following 30 trading days. This offered an opportunity to make money - 5% to 30% a year - by selling Cramer's selections short." Short selling is betting that a stock price will drop and profiting from that drop.
per show on Mad Money, but Barron's reports that Cramer's picks overall do not beat the S&P 500.From Barron's August 20th edition:
"Over the past two years, viewers holding Cramer's stocks would be up 12% while the Dow rose 22% and the S&P 500 16%, according to a record of 1,300 of the CNBC star's Buy recommendations compiled by YourMoneyWatch.com, a Website run by a retired stock analyst and loyal Cramer-watcher."
"We also looked at a database of Cramer's Mad Money picks maintained by his Website, TheStreet.com. It covers only the past six months, but includes an astounding 3,458 stocks - Buys mainly, punctuated by some Sells. These picks were flat to down in relation to the market. Count commissions and you would have been much better off in an index fund that simply tracks the market."
After an initial day-after 2% pop for Cramer's picks, the stocks "usually moved sideways or down for the following 30 trading days. This offered an opportunity to make money - 5% to 30% a year - by selling Cramer's selections short." Short selling is betting that a stock price will drop and profiting from that drop.
Wednesday, August 22, 2007
WAL-MART PET FOOD FROM CHINA FOUND TO HAVE MELAMINE
From USA Today:
Tests of two Chinese brands of dog treats sold at Wal-Mart stores found traces of melamine, a chemical agent that led to a previous, large-scale pet food recall in March, a spokeswoman said Tuesday.
Wal-Mart Stores stopped selling Chicken Jerky Strips from Import-Pingyang Pet Product and Chicken Jerky from Shanghai Bestro Trading in July, after customers said the products sickened their pets.
No recall was announced at that time, but Wal-Mart said in a statement Tuesday that customers who bought one of the products should return it to the nearest store for a refund.
Company spokeswoman Deisha Galberth said 17 sets of tests done on the products found melamine, a contaminant that's a byproduct of several pesticides.
The Delaware County (Pa.) Daily Times reported last week that a woman claimed her 2-year-old Chihuahua died after eating some of the products.
Tests of two Chinese brands of dog treats sold at Wal-Mart stores found traces of melamine, a chemical agent that led to a previous, large-scale pet food recall in March, a spokeswoman said Tuesday.
Wal-Mart Stores stopped selling Chicken Jerky Strips from Import-Pingyang Pet Product and Chicken Jerky from Shanghai Bestro Trading in July, after customers said the products sickened their pets.
No recall was announced at that time, but Wal-Mart said in a statement Tuesday that customers who bought one of the products should return it to the nearest store for a refund.
Company spokeswoman Deisha Galberth said 17 sets of tests done on the products found melamine, a contaminant that's a byproduct of several pesticides.
The Delaware County (Pa.) Daily Times reported last week that a woman claimed her 2-year-old Chihuahua died after eating some of the products.
Tuesday, August 21, 2007
NIKE WINS PITTANCE IN CHINESE COUNTERFEIT LAWSUIT
Think this is an isolated case of counterfeiting? Google "counterfeit Nike" and check out the results, or check out this link to an official Chinese customs site that details efforts to catch counterfeiters. The picture below is of 55,000 counterfeit goods confiscated in Tianjin, China.
From USA Today:
Nike has won lawsuits against two Chinese shoemakers and the local operations of a French supermarket chain over alleged illegal copying of its Air Jordan logo, a court official said Tuesday.
The Shanghai No. 2 Intermediate Court awarded Nike, the world's largest sports apparel company, a total of 350,000 yuan ($46,100) in damages from Jinjiang Longzhibu Shoe Co., Jinjiang Kangwei Shoe Co. and retailer Auchan, the official Xinhua News Agency and other reports said.
The case was the latest victory for foreign companies seeking protection from rampant theft of copyrights and other intellectual property in China. Regardless of laws against commercial piracy, counterfeit copies of most products can be easily found in Chinese stores and markets.
Nike said its employees found shoes made by the companies being sold for about 100 yuan ($13) a pair in outlets operated by the Auchan chain in Shanghai and the nearby city of Ningbo. Authentic Air Jordans sell for many times that amount.
From USA Today:
Nike has won lawsuits against two Chinese shoemakers and the local operations of a French supermarket chain over alleged illegal copying of its Air Jordan logo, a court official said Tuesday.
The Shanghai No. 2 Intermediate Court awarded Nike, the world's largest sports apparel company, a total of 350,000 yuan ($46,100) in damages from Jinjiang Longzhibu Shoe Co., Jinjiang Kangwei Shoe Co. and retailer Auchan, the official Xinhua News Agency and other reports said.
The case was the latest victory for foreign companies seeking protection from rampant theft of copyrights and other intellectual property in China. Regardless of laws against commercial piracy, counterfeit copies of most products can be easily found in Chinese stores and markets.
Nike said its employees found shoes made by the companies being sold for about 100 yuan ($13) a pair in outlets operated by the Auchan chain in Shanghai and the nearby city of Ningbo. Authentic Air Jordans sell for many times that amount.
Monday, August 20, 2007
JOB TIPS FOR RECENT GRADUATES
Please click the link to read the entire article.
From the Chicago Sun-Times:
From the Chicago Sun-Times:
- Don't be afraid to ask for help.
- Dress like a professional, not someone who just got out of college.
- Work on your written and spoken communication skills. No professional e-mail to a colleague or customer should start out with, "hey, dave ..." And capitalization is a beautiful thing.
- Be prepared for criticism.
- Respect deadlines.
CHINESE STATE TV DEFENDS CHINESE-MADE PRODUCTS
From USA Today:
Chinese state television has launched a week-long series of programs dedicated to defending the country's reputation as a safe maker of global goods, pushing forward its campaign to woo back international trust.
The first program was aired Sunday on China Central Television's economic channel and featured the head of a quality watchdog criticizing the recent furor over the quality of Chinese exports as "demonizing China's products."
"Personally, I believe it is new trend in trade protectionism. Although recalls are necessary, it is unfair to decide that all products made in China are unqualified," Li Changjiang, director of the General Administration of Quality Supervision, Inspection and Quarantine, said on the inaugural 90-minute show, titled "Believe in Made in China."
The programs are the latest in China's recent push to prove it is a safe manufacturer and exporter of goods amid discoveries of high levels of chemicals and toxins in Chinese products by countries around the world, from toothpaste to fish.
On Monday, New Zealand launched an investigation after children's clothes from China were found to contain dangerous levels of formaldehyde.
The government ordered the probe after scientists testing clothes for TV3's "Target" consumer watchdog program discovered formaldehyde concentrations up to 900 times above the safe level in woolen and cotton clothes.
The chemical gives a permanent press effect to clothes and is also used as an embalming fluid. It can cause problems ranging from skin rashes to cancer.
The television station says it will not release details of brand names or importers ahead of the show's airing on Tuesday.
Chinese state television has launched a week-long series of programs dedicated to defending the country's reputation as a safe maker of global goods, pushing forward its campaign to woo back international trust.
The first program was aired Sunday on China Central Television's economic channel and featured the head of a quality watchdog criticizing the recent furor over the quality of Chinese exports as "demonizing China's products."
"Personally, I believe it is new trend in trade protectionism. Although recalls are necessary, it is unfair to decide that all products made in China are unqualified," Li Changjiang, director of the General Administration of Quality Supervision, Inspection and Quarantine, said on the inaugural 90-minute show, titled "Believe in Made in China."
The programs are the latest in China's recent push to prove it is a safe manufacturer and exporter of goods amid discoveries of high levels of chemicals and toxins in Chinese products by countries around the world, from toothpaste to fish.
On Monday, New Zealand launched an investigation after children's clothes from China were found to contain dangerous levels of formaldehyde.
The government ordered the probe after scientists testing clothes for TV3's "Target" consumer watchdog program discovered formaldehyde concentrations up to 900 times above the safe level in woolen and cotton clothes.
The chemical gives a permanent press effect to clothes and is also used as an embalming fluid. It can cause problems ranging from skin rashes to cancer.
The television station says it will not release details of brand names or importers ahead of the show's airing on Tuesday.
Saturday, August 18, 2007
WEAK DOLLAR VERSUS EURO CAUSES DECLINE IN GERMAN CAR SALES
Remember, a weak dollar causes imported foreign goods to be more expensive for those using the dollar to make purchases, while U.S.-made goods exported to other countries, in this case Germany, a user of the Euro, are less expensive to those using the Euro.
From The New York Times:
This year, the dollar was down about 6 percent against the euro, which damaged German car sales in this country. Its auto trade surplus with the United States fell 30 percent.
The declining American trade deficit for the auto industry does not mean that this country is anywhere close to reaching a balance in the sector. During the second quarter, the United States imported $1.90 in automobiles and parts for every dollar of such goods it exported. That is the lowest ratio since 1998 and is down from $2.27 in the 2006 period. It is way below the record ratio of $4.22, reached in 1989.
But it still means that it would take a 31 percent increase in American auto exports, and a similar decrease in imports, to produce a balance in auto trade. That would require a much lower dollar — and a much weaker American economy.
From The New York Times:
This year, the dollar was down about 6 percent against the euro, which damaged German car sales in this country. Its auto trade surplus with the United States fell 30 percent.
The declining American trade deficit for the auto industry does not mean that this country is anywhere close to reaching a balance in the sector. During the second quarter, the United States imported $1.90 in automobiles and parts for every dollar of such goods it exported. That is the lowest ratio since 1998 and is down from $2.27 in the 2006 period. It is way below the record ratio of $4.22, reached in 1989.
But it still means that it would take a 31 percent increase in American auto exports, and a similar decrease in imports, to produce a balance in auto trade. That would require a much lower dollar — and a much weaker American economy.
Friday, August 17, 2007
FED LOWERS KEY DISCOUNT RATE HALF POINT
From USA Today:
Stocks soared Friday after the Federal Reserve did what Wall Street was clamoring for and cut its key discount rate a half percentage point.
The move quelled investors' credit worries at least for the time being and initially sent the Dow Jones industrials up more than 300 points before retreating some.
The Fed — which had resisted lowering rates despite weeks of market volatility, and instead added nearly $120 billion in liquidity into the banking system — cut its discount rate to 5.75% from 6.25%. The Fed acknowledged that the stock market turbulence that has pulled the Dow by hundreds of points a day was posing a risk to economic growth.
But the central bank made no mention of lowering its target for the federal funds rate, which has stood at 5.25% for more than a year. The fed funds rate determines the rates that banks charge each other for loans, while the discount rate only covers loans the Fed makes to banks. Many strategists believe the market won't settle down until the Fed lowers the fed funds rate target, considered a more significant benchmark.
Traders who bet on how the Fed might alter rates now expect the central bank will lower the benchmark fed funds rate at its next meeting on Sept. 18. Some investors are hoping for a cut in that benchmark rate even sooner.
"If the cut in the discount rate succeeds in restoring confidence, then perhaps there is no need for the Fed to cut rates at the Sept. 18 meeting," said John Lonski, chief economist of Moody's Investor Service. He added, though, that the key line in the Fed's statement Friday was its willingness to take more steps to prevent market volatility from harming the economy.
"That means the Fed is prepared to make a rate cut if stability doesn't come," Lonski said.
Stocks soared Friday after the Federal Reserve did what Wall Street was clamoring for and cut its key discount rate a half percentage point.
The move quelled investors' credit worries at least for the time being and initially sent the Dow Jones industrials up more than 300 points before retreating some.
The Fed — which had resisted lowering rates despite weeks of market volatility, and instead added nearly $120 billion in liquidity into the banking system — cut its discount rate to 5.75% from 6.25%. The Fed acknowledged that the stock market turbulence that has pulled the Dow by hundreds of points a day was posing a risk to economic growth.
But the central bank made no mention of lowering its target for the federal funds rate, which has stood at 5.25% for more than a year. The fed funds rate determines the rates that banks charge each other for loans, while the discount rate only covers loans the Fed makes to banks. Many strategists believe the market won't settle down until the Fed lowers the fed funds rate target, considered a more significant benchmark.
Traders who bet on how the Fed might alter rates now expect the central bank will lower the benchmark fed funds rate at its next meeting on Sept. 18. Some investors are hoping for a cut in that benchmark rate even sooner.
"If the cut in the discount rate succeeds in restoring confidence, then perhaps there is no need for the Fed to cut rates at the Sept. 18 meeting," said John Lonski, chief economist of Moody's Investor Service. He added, though, that the key line in the Fed's statement Friday was its willingness to take more steps to prevent market volatility from harming the economy.
"That means the Fed is prepared to make a rate cut if stability doesn't come," Lonski said.
Thursday, August 16, 2007
FAKE DIABETES TEST STRIPS TRACED TO CHINA
From the International Herald Tribune:
A global manhunt begun by Johnson & Johnson has traced to China counterfeit versions of an at-home diabetes test used by 10 million Americans to take sensitive measurements of blood sugar levels.
Potentially dangerous copies of the OneTouch Test Strip sold by Johnson & Johnson's LifeScan unit surfaced in U.S. and Canadian pharmacies last year, according to federal court documents unsealed in June but only recently discovered by Bloomberg News.
Court filings disclose, for the first time, that China is the source of about one million phony test strips, which have turned up in at least 35 states and in Canada, Greece, India, Pakistan, the Philippines, Saudi Arabia and Turkey.
Fake medicines are a $32 billion global business, said the World Health Organization, and the Food and Drug agency said it had run 54 counterfeit investigations in 2006, almost twice as many as in the year before.
Records seized from the importers show the counterfeit strips were bought from Henry Fu and his company, Halson Pharmaceutical, which, according to its Internet site, is based in Shanghai.
Halson's Web site says that the company distributes and manufactures medical supplies like syringes, and is run by Fu, who, according to a court order, is also known as Su Zhi Yong. Fu was arrested by the Chinese authorities and remains in prison in China, awaiting resolution of his case in the People's Court of Shanghai.
A global manhunt begun by Johnson & Johnson has traced to China counterfeit versions of an at-home diabetes test used by 10 million Americans to take sensitive measurements of blood sugar levels.
Potentially dangerous copies of the OneTouch Test Strip sold by Johnson & Johnson's LifeScan unit surfaced in U.S. and Canadian pharmacies last year, according to federal court documents unsealed in June but only recently discovered by Bloomberg News.
Court filings disclose, for the first time, that China is the source of about one million phony test strips, which have turned up in at least 35 states and in Canada, Greece, India, Pakistan, the Philippines, Saudi Arabia and Turkey.
Fake medicines are a $32 billion global business, said the World Health Organization, and the Food and Drug agency said it had run 54 counterfeit investigations in 2006, almost twice as many as in the year before.
Records seized from the importers show the counterfeit strips were bought from Henry Fu and his company, Halson Pharmaceutical, which, according to its Internet site, is based in Shanghai.
Halson's Web site says that the company distributes and manufactures medical supplies like syringes, and is run by Fu, who, according to a court order, is also known as Su Zhi Yong. Fu was arrested by the Chinese authorities and remains in prison in China, awaiting resolution of his case in the People's Court of Shanghai.
Wednesday, August 15, 2007
MATTEL CHINESE-MADE TOY RECALL UP TO NEARLY 19 MILLION
From CNN Money:Mattel Inc. Tuesday recalled more than 9 million toys made in China and sold in the United States, including "Polly Pocket" and "Batman" dolls and other popular figures, because of loose magnets and lead paint - its second major recall in less than a month.
The recall affects 9.58 million imported toys sold at toy stores, discount stores and other retailers nationwide dating back as far back as May 2003. Worldwide, Mattel said the recall includes nearly 19 million toys. The company said the recalls would cost about $30 million.
The recall is the latest development in the growing crisis over the safety of Chinese products. Chinese officials have gone out of their way to stress the safety and quality of its exports, blaming the problems on a small number of companies. Earlier this month, China's Commerce ministry blacklisted 400 export firms following the recent product safety scares.
Saturday, August 11, 2007
MOTOROLA PINS HOPES ON NEW RAZR
From Howard Wolinsky of the Chicago Sun-Times:Motorola said Friday the next generation of its hugely popular RAZR thin clamshell phone -- one of the Schaumburg company's great hopes to spark a turnaround -- will be available from all major mobile phone carriers within 60 days.
RAZR2 will be available starting in the next two weeks. Tracey Thiele, Motorola spokeswoman, said that by October, the new RAZR2 will be sold by AT&T, Sprint, T-Mobile and Verizon, the top national carriers, and Alltel and Chicago-based U.S. Cellular, the regional carriers.
RAZR2 is part of a new product lineup, which Motorola hopes can turn around the company. Motorola, which invented the cell phone in 1973, has suffered a series of setbacks, dropping in the last quarter to No. 3 in the industry.
MILK PRICES SOARING
From USA Today:
It's cheaper than oil and, barring a global mad cow crisis, we'll probably never run out of it. But milk has one thing in common with oil: It's trading at record highs.
Milk prices hit a record last month in the United States, where consumers paid an average $3.80 a gallon, compared to $3.29 in January, according to the U.S. Department of Agriculture. It forecasts prices will remain high throughout the year.
International dairy prices increased 46% between November 2006 and April 2007, with milk powder prices increasing even faster, according to the Food and Agriculture Organization.
The boom in biofuels is also pushing up corn prices and, as a result, making animal feed more expensive. Farmers have responded by raising milk prices. Corn futures indicate that the price of corn will remain high this year, according to the Washington-based International Dairy Foods Association. Prices have also risen for soybeans, another feed crop, it said.
It's cheaper than oil and, barring a global mad cow crisis, we'll probably never run out of it. But milk has one thing in common with oil: It's trading at record highs.
Milk prices hit a record last month in the United States, where consumers paid an average $3.80 a gallon, compared to $3.29 in January, according to the U.S. Department of Agriculture. It forecasts prices will remain high throughout the year.
International dairy prices increased 46% between November 2006 and April 2007, with milk powder prices increasing even faster, according to the Food and Agriculture Organization.
The boom in biofuels is also pushing up corn prices and, as a result, making animal feed more expensive. Farmers have responded by raising milk prices. Corn futures indicate that the price of corn will remain high this year, according to the Washington-based International Dairy Foods Association. Prices have also risen for soybeans, another feed crop, it said.
Friday, August 10, 2007
FEDERAL RESERVE PUSHES $38 BILLION INTO CIRCULATION
From Reuters:
The U.S. Federal Reserve provided the banking system with $38 billion on Friday, the largest amount of liquidity since the days after the September 11 attacks six years ago, adding ample funds for the second day running as financial markets fretted over credit conditions.
In its statement after Friday's first market operation, the Fed said it would provide liquidity as needed "to facilitate the orderly functioning of financial markets.
"In current circumstances, depository institutions may experience unusual funding needs because of dislocations in money and credit markets," it said.
The last time the central bank made a similar statement was after the September 11, 2001, terror attacks, when it also said it would do what was necessary to keep markets functioning normally. The Fed made a similar vow in October 1987 following a precipitous decline in U.S. stock markets.
Central banks worldwide have now injected at least $326.3 billion in the past 48 hours to prevent markets from spinning into a global liquidity squeeze. Short-term interest rates spiked in response to banks' decreased willingness to lend to each other.
The U.S. Federal Reserve provided the banking system with $38 billion on Friday, the largest amount of liquidity since the days after the September 11 attacks six years ago, adding ample funds for the second day running as financial markets fretted over credit conditions.
In its statement after Friday's first market operation, the Fed said it would provide liquidity as needed "to facilitate the orderly functioning of financial markets.
"In current circumstances, depository institutions may experience unusual funding needs because of dislocations in money and credit markets," it said.
The last time the central bank made a similar statement was after the September 11, 2001, terror attacks, when it also said it would do what was necessary to keep markets functioning normally. The Fed made a similar vow in October 1987 following a precipitous decline in U.S. stock markets.
Central banks worldwide have now injected at least $326.3 billion in the past 48 hours to prevent markets from spinning into a global liquidity squeeze. Short-term interest rates spiked in response to banks' decreased willingness to lend to each other.
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