Funny Money Report
It is incredible to see the rampant devaluation of the U.S. Dollar. The Federal Reserve just hours ago made a rare cut of 25 basis points during the weekend which will cause even more inflation. Gold immediately moved up $20 an ounce and the U.S. Dollar Index plunged under 71 in international trading. If this type of market activity continues the U.S. Dollar will have no value in a few months. While it is probably unlikely that we will see a hyper-inflationary collapse of the U.S. Dollar within the next few months, these policies are entirely unsustainable. If the Federal Reserve does not move to defend the value of the U.S. Dollar we will eventually see a hyper-inflationary collapse and worldwide financial turmoil. This view is also shared by other well respected financial analysts. Peter Schiff recently raised concerns about a hyper-inflationary collapse of the U.S. Dollar, Robert Reich a former Clinton cabinet member believes we are facing a depression and Alan Greenspan the man who caused this whole mess wrote in the Financial Times stating that we are facing the worst financial crisis since World War II. What’s amazing is that the Federal Reserve isn’t even trying to protect the U.S. Dollar because all they care about is saving the power of their private banking cartel. They don’t care about the U.S. Dollar nor do they care about the country itself. They are destroying this country through their actions and there needs to be an investigation into the controllers of this bank.
MarketWatch.com - Pre-Market Indications
Tuesday, March 18, 2008
Funny Money Report
NYSE Arca Morning Update for Tuesday, Mar 18, 2008 :
Stocks trading on NYSE Arca at a price more than 15% away from the previous trade day's consolidated close price. (As of 08:30:00 ET)
|Monday's Close||Current Price||Pct Chng||Current NYSE Arca Vol|
10 Most Active stocks on NYSE Arca as of 08:30:00 ET
|Based on Dollar Volume:||Based on Share Volume:|
TMA +21.3%, FCSX +16.6%, MF +15.2%, LEH +13.4%, UBS +11.9%, NCC +7.7%, BSC +7.5%, CS +7.3%, VIP +7.2%, SHPGY +6.4%, CFC +6.4%, OMNI +6.1%, FNM +6.0%, FCSX +5.9%, EXM +5.6%, TMTA +5.1%, HBC +5.1%, GS +4.6%, FRE +4.4%, NYX +4.1%, C +3.9%, NPSP +3.9%, HYTM +3.9%, MER +3.3%, ESC +3.2%, JPM +3.0%, KEX +2.2%, ULTR +1.8%, VLO +1.5%...
NUVO -47.1%, DVAX -45.4%, IVAN -11.2%, CEO -5.3%, NWA -4.7%, CIT -4.6%, SHFL -4.3%, HMY -2.0%, AU -1.5%.
Market turmoil will not stop Visa IPO: analysts
By Lilla Zuill Mon Mar 17, 2:04 PM ET
NEW YORK (Reuters) - Visa Inc, which plans to float its shares on the New York Stock Exchange on Wednesday in the biggest U.S. initial public offering ever, will not be deterred by market turmoil that has taken a severe toll in recent days, analysts said on Monday.
"I do hear that the deal is on and is expected to be strong," said Sal Morreale, who tracks IPOs for Cantor Fitzgerald in Los Angeles.
Visa has filed to sell 406 million Class A common shares at $37 to $42 apiece, for proceeds of $15 billion to $17 billion.
If demand is strong, an additional 40 million shares could sell, pushing proceeds as high as $19 billion. Even at the low end of expectations, the IPO would set a record in the United States, beating out AT&T's $10.6 billion deal in 2000.
Morreale said underwriters, led by JPMorgan (JPM.N) and Goldman Sachs & Co (GS.N), were under pressure to pull off the deal, or risk spooking investors who are already on pins and needles after Bear Stearns Cos (BSC.N) on Sunday averted a near-collapse by agreeing to be sold for a fire-sale price.
The deal could produce a windfall for cash-strapped banks. Based on the mid-range of Visa's expected IPO price, about $10.2 billion of proceeds would go to large Visa stockholders that include JPMorgan, National City (NCC.N), Bank of America (BAC.N) and Citigroup (C.N).
The IPO could also provide a boost for investment banks, which get fees from underwriting deals, after the market for U.S. initial public offerings all but came to a standstill in recent months, as the growing credit crisis prompted investors to withdraw.
Visa's IPO could generate around $500 million in fees for underwriters, according to an amended registration statement with the U.S. Securities and Exchange Commission.
"A lot of the firms are struggling right now," said Morningnotes.com analyst William Wilson. "They really need this jump-start."
Wilson said he also expected Visa to proceed with its IPO. An underwriter on the deal confirmed the IPO is expected to price after Tuesday's market close, with the shares debuting on the New York Stock Exchange on Wednesday.
Investors have been eager to grab shares in Visa's offering as smaller rival MasterCard Inc's (MA.N) stock has more than quadrupled in value since its May 2006 IPO.
MasterCard shares, which have largely been untouched by the turmoil affecting the wider market in recent months, were trading down nearly 7 percent at $194.42 on Monday.
MasterCard and Visa are not directly exposed to rising defaults and late-paying consumers because they process transactions, while rivals American Express Co (AXP.N) and Discover Financial Services (DFS.N) issue cards, extending credit to cardholders.
Posted by st0ckman at 8:10 AM
Wall Street looks to the Fed
Stock futures gain ground as investors bet Bernanke & Co. will boldly slash rates; Lehman, Goldman earnings in focus.
About three hours before the start of trading, Nasdaq and S&P futures were higher, suggesting a positive open for stocks.
Lehman shares plunged 19% Monday on speculation that the investment bank will follow in the footsteps of Bear Stearns and collapse amid the credit turmoil.
Bear Stearns (BSC, Fortune 500) reached a deal Sunday to be sold to JPMorgan Chase (JPM, Fortune 500) for a fire-sale price of $2 a share, or $230 million. The deal sent financial shares sharply lower Monday, although JPMorgan managed to finish the session with gains.
The most anticipated event of the day comes at 2:15 p.m. ET, when the Fed issues its policy statement. The Fed is expected to cut the target for the fed funds rate, a key overnight consumer lending rate, by as much as a full percentage point when it meets.
Below are the top analyst upgrades and downgrades we are looking at this Tuesday morning:
- Altria Group (NYSE: MO) Started as Buy at UBS.
- Amazon.com (NASDAQ: AMZN) started as Buy at Canaccord Adams.
- Goldman Sachs (NYSE: GS) raised to Outperform at Wachovia.
- International Paper (NYSE: IP) downgraded to Neutral at JP Morgan.
- National City (NYSE: NCC) raised to Market Perform at KBW.
- Novell (NASDAQ: NOVL) started as Buy at Broadpoint Capital.
- RiskMetrics (NYSE: RMG) raised to Buy at Banc of America.
- SAP AG (NYSE: SAP) raised to Outperform at Bernstein.
- United Rentals (NYSE: URI) downgraded to Underweight at JP Morgan.
Citigroup raised overseas ship tankers to Buy from Hold: General Maritime (NYSE: GMR), Overseas Shipholding (NYSE: OSG), and Teekay Shipping (NYSE: TK).
|Mar 18 7:12am†||Change||%Change||Level|
|U.S. Dollar vs Euro||+0.0086||+0.55%||1.5812|
|U.S. Dollar vs Yen||+0.0700||+0.07%||0.0103|
|U.S. Dollar vs UK £||+0.02||+0.88%||2.02|