History Remembers Kings Not Soldiers

By The Greek:

The old adage goes, history remembers kings, not soldiers. Well, on one particular week in August, history will always remember a King and a soldier.

This past week will forever be remembered for its historical significance. On the same day of Martin Luther King's "I Have a Dream" speech of 25 years ago, Barack Obama became the first American of African descent to accept a major party nomination for the office of President of the United States of America. Then, on the following day, John McCain, a soldier, made Alaska Governor Sarah Palin the first female Republican nominee for Vice President in history.

(Article interests NYSE: SNP, NYSE: DHT, NYSE: DCI, NYSE: HOV, NYSE: TOL, NYSE: NSM, NYSE: NYX, Nasdaq: TTWO, Nasdaq: SCMR, Nasdaq: JOYG, Nasdaq: QQQQ, AMEX: DIA, AMEX: DOG, AMEX: SDS, AMEX: SPY, AMEX: QLD.)

To Be Swiftly Forgotten

What will be forgotten is the week's heavy flow of positive economic data that stood in stark contrast to most economists' economic outlook. Two key housing reports turned the spigot on the week's positive data flow. While not offering any sign of improvement, deterioration was also absent from the new and existing home sales data. That lack of deteriorating data was enough to allow the market to exhale, and as the week progressed, the economic data only grew stronger.

Durable Goods Orders increased 1.3% in July, against expectations for just 0.1%. This marked only the second month this year in which orders increased, the first being June. Then on Thursday, the best news of all arrived, as interpreted by the stock market's favorable reaction. Second Quarter GDP (Preliminary Report) was noted at a solid 3.3%, exceeding expectations for 2.7% and above its advance report of 1.9%.

Even the financial crises of Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) seemed to settle a bit, as both companies were able to raise capital last week. FNM rose 37%, and FRE soared 60.5%, but both declined sharply on Friday. We still wouldn't recommend buying either of them actually. Friday illustrated the market's concern, which is that over any given weekend your good old government might decide to take the firms private, leaving shareholders left with nothing. I believe this is more likely than not at this point, so I would leave the shares alone.

The good news didn't end there either. On Friday, the Reuters/University of Michigan Consumer Sentiment Index was reported at its highest point in five months. Sentiment measured 63.0, up from July's 61.2 and ahead of the expected 62.0. Personal Spending came in as was forecast, at +0.2%, but income declined more than expected, falling 0.7%.

Why We Still Worry

Despite all the good news, there remains plenty of reason for concern. For instance, income levels decreased partly due to the end of fiscal stimulus distribution and partly because of decreased worker hours at companies across the country. That's not a good thing. Also, GDP benefited because of the widening difference between the change in exports and imports. Imports, for that matter, are not growing like they had in the past thanks to the weak dollar and decreased overall spending here at home. Consumers are strapped for cash, and you don't need me to tell you that anymore. Meanwhile, exports continued to do well overseas, since suffering consumers in Europe are flocking to cheaper American goods. However, that demand looks to wane as well, since Europe and Japan appear to be entering recession, and even Indian and Chinese growth is slowing.

Despite the still solid GDP data, economists see tough times ahead here at home, as gas remains relatively high, unemployment continues to rise and fiscal stimulus funds are exhausted. The government might consider a second round of aid shortly though, especially because of the election year driver pushing each political party to do the most they can to help Americans.

The Week Ahead

Next week is abbreviated, thanks to the Labor Day holiday. Investors will return to face more stress than just that brought on by their return to school schedule. The week contains all the important monthly employment reports, and these are not likely to present the positive surprises we saw in this past week's data. On top of that, we expect to hear economic concerns voiced by the ECB on Thursday, which will likely worry the market more about global economic decline. India already reported softer than expected Q2 GDP data last week. You'll also want to look for Chain Store Sales data on Thursday.

The earnings schedule is light, but includes: Monday – China Petroleum and Chemical (NYSE: SNP); Tuesday – DHT Maritime (NYSE: DHT), Donaldson (NYSE: DCI); Wednesday – Hovnanian Enterprises (NYSE: HOV), Joy Global (Nasdaq: JOYG); Thursday – Take-Two Interactive (Nasdaq: TTWO), Toll Brothers (NYSE: TOL); Friday – National Semiconductor (NYSE: NSM) and Sycamore Networks (Nasdaq: SCMR).


Remember, we invite you to comment to each and every article, and we hope you will visit the site and find the "Discuss Topic" link below the article. Please see our disclosure at the Wall Street Greek website.

Sarah Palin, John McCain's Choice for VP

John McCain chose Sarah Palin to be his Vice Presidential running mate. "America's Hottest Governor," God bless em! Jest we may, but clearly she's much more than just a pretty face, and her accomplishments speak to that.

While this will certainly raise concerns about the strain on John's old and wise heart, along with all his potential presidential responsibilities, we're more concerned with how you feel about this decision.

I think Obama chose the perfect complementary VP running mate in Biden, and it appears McCain has done the same by choosing Palin. Let's use this opportunity to discuss the decision, and to compare the two tickets, now that they are complete.



Topic of Debate Archive

Article interests (AMEX: DIA, SPY, SDS, DOG, QLD), (Nasdaq: QQQQ, AAPL, YHOO, MSFT, AMZN, GOOG, INTC, DELL, SIRI, COST), (NYSE: NYX, WMT, HD, TGT, TOL, LMT, ATK, COL, NOC).

Dell News (Nasdaq: DELL) Ahead of EPS

By The Greek:

Dell (Nasdaq: DELL) reports its earnings news tonight. Often times here at "The Greek," we discuss the art of investing. Well, today I came across a good example of a possible point of interest, where the "art" of investing could prove as important to profit creation as the "science" of it.

Article interests (AMEX: DIA, SPY, SDS, DOG, QLD), (Nasdaq: AAPL, DELL, HPQ, QQQQ), (NYSE: NYX)

Running around the office here on the Upper East, we caught an interesting analyst interview on Bloomberg radio. Unfortunately, I did not catch the analyst's name or firm name (feel free to update me with that). However, we found the content of his discussion interesting and enlightening, and more importantly actionable.

Now, I must qualify my statement here, by noting that I have not been following the Dell story for a good year now. So, I was unaware of some of the important notes the analyst made. I should also note that the analyst has a buy rating on DELL, and so he has reason to hope for the shares to rise today and tomorrow. But, it's also within this reasoning that we find our own reason to pay attention.

The Art of Investing

Having been an analyst, but more importantly, having witnessed the tendencies of the average analyst (actually the majority), I can make observations regarding analyst actions. For an analyst to come out and take part in a highly public interview just hours ahead of a company's earnings report is not a common event. It's usually in the hours before these make-or-break moments that analysts pull out the bottle of Jack hidden in their bottom drawer (not really), or otherwise keep their head low and hope the Director of Research forgets about their position or the report itself. Of course, if the news fits his outlook, he would be in that same Director's office within minutes to let him know of the favorable result, OR hiding in a bathroom stall until the Director leaves for home otherwise.

Now, there would be a couple instances when an analyst might otherwise take the interview. First, he could be a proven success who can bear a hit or two, and cherishes the publicity. Secondly, he could be possessed by blind bravado or otherwise naive. Thirdly, he might not receive calls for interviews often, and it being two days before the Labor Day holiday, all the other analysts at major firms may already be stationed at their satellite offices in the Hamptons, making him the only guy available for Bloomberg to call. Also, if there ever was a time to take a chance, it would be two days ahead of the long weekend in late August (around lunchtime mind you), when hardly anybody is paying attention, especially to a radio interview that is not archived and hard to track down after the few minutes of its occurrence.

"In life, the guys who play it safe, keep their jobs and collect a pension some day, but the guys who take chances, they create things and they make a difference."

The Other Scenario - Guts and Conviction

During my time at Mickey Mouse Inc., I was well-known for making gutsy calls and making them right. Oh, over the seven years of taking chances, I was wrong once or twice (actually three times, and I can cite each of them for you). I made gutsy calls because I had confidence in the due diligence I had put into each of my recommendations. And, I just plain had guts, something a lot guys could use a bit of. In life, the guys who play it safe keep their jobs and collect a pension, but the guys who take chances, they create things and they make a difference. I view life as a one-time opportunity, and I've never been one to play it safe.

The other scenario here is that this analyst really believes in DELL. He noted that his call has already proven successful (having initiated it some 5 points ago), and a lot of times this is just the reinforcement a man needs to speak his mind. But, the context of his interview also spoke for DELL, and my mind is an analytical one. What I mean is, I'm not easy to convince.

I often interviewed CEOs who were certain I was going to start their stock with a sell recommendation, only to see I recommended the shares upon initiation. You have to play devil's advocate as an analyst, and that left a lot of CEOs sweating. Not really, because I was always some young kid to them who they were sure knew very little; they never sweat a drop unless the interview was over the phone.

Anyway, I suspect this analyst really believed in DELL, and a lot. He pointed out a catalyst that the market is already aware of with DELL, margin expansion. He noted some $70 the company is saving on one product by restructuring its supply chain and process, and the much more significant improvement to gross margin on that product. He noted that Dell was in process of doing this across the company, and that the shares' improvement from their nascent bottom probably did not reflect that change yet.

Now, at this point, I would study the numbers a bit, and I would never buy the stock until after I had done that. I've found that my own judgment is usually much more important to the success of my decisions than that of any other analyst. But, given that we're close to market close, I'll leave that to you. The shares are down 1.8% today, after a rise yesterday. Whether you buy into the DELL story depends on your own conviction. But, at least pay attention to the economics detailed in the report, and if the financials are seriously benefiting and economic value is being created, then, also after making sure that there would not be a major impact to product reliability from the restructuring of process, then consider DELL. I'll take a closer look after the report, and let you know how I feel about the shares over the longer-term.


Please see our disclosure at the Wall Street Greek website.

Dispelling Kuwaiti Alert Rumor

By Yal - Middle Eastern Affairs:
(Contributed to by Daniel P.)

Article interests (AMEX: GAF, DIA, SPY, DOG, SDS, QLD), (Nasdaq: ISRQ, ISRX, GULF, QQQQ, AMDEX, AMDAX, XISLX, AMDCX, TRAMX, TRIAX), (NYSE: NYX, LMT, COL, NOC, ATK, GD)

Reports have been circulating since early August that Kuwait is at a heightened level of alert. Some even went as far as saying "NUCLEAR ARMADA ON ITS WAY TO IRAN." Sources cited that the USS Theodore Roosevelt was already on its way to the Gulf and that the USS Ronald Reagan and its Carrier Strike Group Seven - the USS Iwo Jima as well as French and British ships were reportedly following close behind.

The Iranian press picked up the story and repeated it all over again and again - from there it was copied to many websites around the world.

What caused those reports on a pending attack is unknown. We wonder if there was a connection to massive oil futures contracts that were unwinding at the time.

The Truth
The USS Theodore Roosevelt is still at Norfolk until Sep 8th. Our sources indicate that there is no unusual activity anywhere in the Gulf and that the only activity in Kuwait is related to its preparation for Ramadan, which starts next month. Folks, it is Ramadan - Nobody would attack Iran during Ramadan, when religious feelings are at their peak. Any attack on a Muslim nation during this time may undermine stability throughout the regimens of the ME. Ramadan runs from September 1st through the 30th, with Id el-Fiter in early October.

Daniel Adds - (Daniel is slated to pick up global affairs coverage for "The Greek" shortly)
Other sources indicate the U.S. has two Air Carrier Groups and one Marine Expeditionary Group (read 3 aircraft carriers) in the Indian Ocean. The two Air Carrier Groups would comprise some 40 ships and 6 submarines, more or less. The Marine Group comprises about 12 ships. It is a sizable contingent even without the assets currently in the Gulf region itself.

Yal Notes Anecdotal Hints...
The only counter indication to our argument is that Israel's Minister of Defense, Ehud Barak, has put his Tel-Aviv penthouse up for sale (listed at $17M in case you are interested) - does he think that property values in Tel-Aviv are about to go down? They might for various reasons that have nothing to do with any security situation...





Please see our disclosure at the Wall Street Greek website and Yal's at his bio page on our site.

Investing Like a Marine

By Ryan Delany - Personal Finance & Investing:

When times are the worst is when investors need to be at their best. We're in a bear market, and these are stressful times for stock market investors. However, for those who keep their composure, this market presents some excellent opportunities.

Article interests (AMEX: DIA, SPY, SDS, DOG, QLD), (NYSE: LMT, GD, HON, NOC, COL, GR, ATK, ERJ, DRS, SPR, CGT, CW, TDY), (Nasdaq: QQQQ, ESLT, BEAV, SWHC, KAMN)

For marines, discipline is a sacred word. During boot camp, Drill Instructors work like dogs to instill discipline into teenagers -- a monumental task. Throughout boot camp the new recruits are intentionally stressed, and through this stress their discipline is tempered. When recruits finally graduate into marines, their discipline is their pride.

Marines need discipline because during combat, we cannot let our emotions take control. Specifically, fear will try to take control when bullets are flying and bombs are exploding. Losing control during combat gets marines killed.

At my blog, Semper Finance, I advise Marines and servicemen to use the skills they learned in the military to become successful investors -- and discipline is one of their greatest assets. Civilian investors don't need to go to boot camp to understand discipline, they just need to understand their fears.

The investor's biggest enemy is not a bear market, it is his own fear. There is risk to investing in the stock market, and you may even lose money, but investors should know that from the get-go. An investor who can stay disciplined will make money. In "The Intelligent Investor," the venerable Ben Graham writes, "the investor's chief problem--and even his worst enemy--is likely to be himself... We have seen much more money made and kept (emphasis his) by 'ordinary people' who were temperamentally well-suited for the investment process, than by those who lacked this quality, even though they had an extensive knowledge of finance, accounting, and stock market lore." Take a lesson from Ben Graham; he may not have been a marine, but he wrote the book on discipline.

Discipline Served Me Well

The discipline I learned in boot camp and training served me well during stressful times. I was in an anti-terrorism unit when I was in the Corps, and shortly after 9/11 we were sent to Afghanistan. Our mission was to defend the US Embassy and the civilian personnel in Kabul. One night, when the embassy was attacked, I was able to see the juxtaposition between marine and civilian very clearly. I remember seeing the civilians running panicked towards the shelters, and the marines running calmly in the opposite direction, to meet the threat.

"We accepted that there was risk, looked for opportunity, and exploited it to our advantage."

Since marines keep their composure in stressful situations like the embassy attack, we were able to successfully assess and defeat the threat. We accepted that there was risk, looked for opportunity, and exploited it to our advantage. If the marines had run away with the civilians, we all could have been killed.

Keep Your Composure - Invest Like a Marine

There will always be scary news in the stock market, and doomsayers will always be advising investors to run for shelters like precious metals or government bonds. However, the calm and composed investor will not panic and hide, he will seek opportunity and overcome.

Please see our disclosure at the Wall Street Greek website, and Ryan's individual disclosure at his bio page.

This Week: Financial Crises Outnumber Hurricanes

By "The Greek"

The National Financial Crisis Center (read Fed) forecasts a record number of named crises this year. This in, just as Storm Fannie Freddie (NYSE: FNM, FRE) prepares to make landfall.

Article interests Democrats, Republicans, Independents and (AMEX: DIA, SPY, SDS, DOG, QLD), (NYSE: NYX, CHS), (Nasdaq: QQQQ, DELL).

Hurricane Fannie-Freddie is on tap to shake things up this week. Hope those levees hold, but fear not, as Fannie-Freddie has been deemed too big to fail. Only the equity holders, who thought "government sponsored" meant their money was safe, stand to be flooded out. Meanwhile, forming in the Atlantic, off the coast of North Africa, Tropical Depression Lehman Brothers (NYSE: LEH).

After unsettling inflation figures in the PPI data last week, the Fed Chief still managed to quell market concern with simple words stating that the contrary was more likely. On that inspirational statement, the market managed a week saving rally on Friday, if you could call it a rally.

This Week

The economic slate is a busy one this time around, with reports covering the entire spectrum of possibility. However, it's also the week of the Democratic National Convention, so expect politics and Democratic Party policy to outweigh all other news. It will be interesting indeed to watch how the market reacts to the new Democratic persona of change, versus the Democratic stigma of tax hike and capital gains rate increase.

Monday

The DNC kicked off in Denver, Colorado, with Michelle Obama's uplifting speech on Monday night. The lone economic report due for the day was the Existing Home Sales Report offered up by the National Association of Realtors. The 10:00 AM reporting for the month of July was seen by Bloomberg's consensus of economists running at an annual pace of 4.94 million. The actual result of 5.0 million was a nice, modest surprise. This compared against June's rate of 4.85 million, and offers perhaps further confirmation that the bottom for housing is here or at least near.

Earnings Announcements for Monday, August 25 Company Symbol Time A-Power Energy Generation Systems, Ltd. APWR Before Market Open ADVANCED SEMICONDUCTOR MANUFACTURING CORP 3355.HK 12:00 am ET AIR NEW ZEALAND AIR.NZ 5:15 pm ET AMADEUS ENERGY LTD ADUEF.PK 12:00 am ET ANHUI TONGDU COPPER CO LTD AHUIF.PK Time Not Supplied AUSTAL LIMITED ASB.AX After Market Close AUSTEREO GROUP AEO.AX Time Not Supplied AV TECH CORPORATION AVTHF.PK Time Not Supplied AVICHINA INDUSTRY & TECHNOLOGY 2357.HK Time Not Supplied BEIQI FOTON MOTOR CO. LTD. 600166.SS Time Not Supplied BIO TREAT TECHNOLOGY LIMITED BOTRF.PK After Market Close BIOTA HOLDINGS BTAHY.PK Time Not Supplied CHALLENGER FINL SERVICES GROUP CGF.AX Time Not Supplied CHARTER HALL GROUP CTOUF.PK 03:00 am ET CHENGDE XINXIN VANADIUM 600357.SS Time Not Supplied CHICONY ELECTRONICS CO LTD CCNYF.PK 03:00 am ET CHINA CONSTRUCTION BANK CICHF.PK Time Not Supplied China Netcom Group Corp. CN Time Not Supplied CHINA RESOURCES LOGIC 1193.HK Time Not Supplied China Unicom Limited 600050.SS Time Not Supplied CHONGQING TAIJI IND 600129.SS Time Not Supplied COSCO PACIFIC 1199.HK Time Not Supplied CPI Corporation CPY After Market Close DATONG COAL INDUSTRY CO DTNGF.PK After Market Close DIN BOSTAD SVERIGE AB DIN.ST Time Not Supplied ETRON TECHNOLOGY INC 5351.TWO After Market Close Formula Systems FORTY Time Not Supplied GALILEO JAPAN TRUST GLLOF.PK After Market Close GAMANIA DIGITAL ENTERTAINMENT CO 6180.TWO After Market Close GANSU JIU STEEL GP HONGXING IRON&ST 600307.SS Time Not Supplied GIANT MANUFACTURING CO 9921.TW Time Not Supplied Gilat Satellite Networks Ltd GILT Time Not Supplied GOODMAN FIELDER LTD GFF.AX Time Not Supplied GUANGDONG GOLDEN DRAGON DEVELOPMENT 000712.SZ Time Not Supplied GUANGZHOU DONGFANG HOTEL 000524.SZ Time Not Supplied GUANGZHOU DONGHUA ENTERPRISE CO 600393.SS Time Not Supplied GUIZHOU YIBAI PHARMACEUTICAL CO 600594.SS Before Market Open HAITIAN INTERNATIONAL HOLDINGS LTD 1882.HK Time Not Supplied HUAFA INDUSTRIAL SHARE CO 600325.SS Time Not Supplied IBA HEALTH LTD IBA.AX Time Not Supplied INFORTREND TECHNOLOGY INC 2495.TW After Market Close ING OFFICE FUND IOF.AX Time Not Supplied JIANGSU EXPRESSWAY CO LTD JEXYF.PK Time Not Supplied JIANGSU GAOCHUN CERAMICS CO 600562.SS Time Not Supplied JIANGXI GANNENG CO 000899.SZ Time Not Supplied JILIN FOREST INDUSTRY CO 600189.SS Time Not Supplied Jinpan JST Time Not Supplied KINGBOARD LAMINATES HOLDINGS LTD 1888.HK Time Not Supplied LINGYUN INDUSTRIAL CORPORATION 600480.SS Time Not Supplied LONGJIAN ROAD & BRIDGE CO. LTD 600853.SS Time Not Supplied MEDICAL DEVELOPMENT INTL MVP.AX Time Not Supplied MOSEL VITELIC INC 2342.TW After Market Close NAN YA PRINTED CIRCUIT BOARD CORP 8046.TW Time Not Supplied NANJING CENTRAL EMPORIUM CO 600280.SS Time Not Supplied NKT Holding A/S NKT.CO Time Not Supplied PIHSIANG MACHINERY MFG CO 1729.TW After Market Close Plazacorp Retail Properties Ltd PLZ.V Time Not Supplied QINGDAO HAIER CO 600690.SS Time Not Supplied RAMSAY HEALTH CARE LTD RHC RHC.AX Time Not Supplied REGAL REAL ESTATE INV TR 1881.HK After Market Close RESVERLOGIX CORP RVX.TO Time Not Supplied RIDLEY CORPORATION LTD RIC.AX After Market Close ROC OIL COMPANY LIMITED ROC.AX Time Not Supplied SHAANXI BROADCAST & TV NETWORK 600831.SS Time Not Supplied SHANGDONG GOLD MINING CO LTD SGOLF.PK Time Not Supplied Shanghai Municipal Raw Water Co Ltd SIRWF.PK Before Market Open SHANGHAI SANMAO TEXTILE ENTERPRISE 900922.SS Before Market Open SHANGHAI XINHUA MEDIA CO. LTD. 600825.SS Before Market Open SHENZHEN KINGDOM SCI-TECH CO. LTD. 600446.SS Time Not Supplied SILEX SYSTEMS LIMITED SLX.AX After Market Close SKYCITY Entertainment Group Ltd SKC.NZ Time Not Supplied SMS MANAGEMENT & TECHNOLOGY LIMITED SMX.AX 12:00 am ET SOYEA TECHNOLOGY 000909.SZ Before Market Open SPOTLESS GROUP LIMITED SPT.AX Time Not Supplied SUNCORP METWAY LIMITED SUN.AX 8:30 pm ET Surgutneftegas JSUGF.PK Time Not Supplied TAVEX ALGODONERA SA TVXAF.PK Time Not Supplied TRANSFIELD SERVICES LIMITED TSE.AX After Market Close TXC CORPN 3042.TW After Market Close WIDE BAY AUSTRALIA LTD WBB.AX After Market Close XIANDAI INVEST CO 000900.SZ Time Not Supplied XINJIANG HOPS 600090.SS Before Market Open XUZHOU VV FOOD BEVERAGE CO 600300.SS Before Market Open Yanzhou Coal Mining Company Limited YZC Time Not Supplied

Tuesday

Tuesday's DNC speaker will be Senator Hillary Clinton. We're not going to get wrapped up in the semantics of political infighting, at least not in this article, but there's plenty of debate on how Hillary really feels about being left off the ticket, despite her very team-oriented outward expressions.

More real estate market data is due on Tuesday, including S&P/Case Shiller's Home-Price Index. As of May, prices had fallen 15.8% year-to-year, and there is little reason to believe prices did not decline a little more in June, since foreclosures make up a sizable portion of sales. Also, I believe existing home owners are finally capitulating on price in instances where a sale is necessary. In other words, initially, as home builders saw the need to cut prices, I believe existing owners were tied to the figures they knew of the recent past, and fixated to the prices their neighbors got; this played a role in their price setting and acceptance behavior. At this point, I believe they have accepted reality.

July New Home Sales are due at 10:00, with the consensus expecting annual sales to have run at a pace of 525K. That will compare against a measure of 530K in June. The Conference Board's Consumer Confidence measure is due at 10:00 also. Bloomberg's consensus sees a weak reading of 53.0 this time around, versus a weaker 51.9 last time out. The improvement probably has as much to do with the drastic point of last measure, as it does to improved oil and gasoline prices and a stronger dollar.

The regular ICSC-UBS Same-Store Sales Report checks in at the height of "back to school" season, so we are looking for week-to-week improvement matched against year-over-year softing growth. Last week, the ICSC report showed a 0.1% week-to-week increase and 2.4% year-over-year rise. That yearly rise represented a pullback from recently stronger growth; government money is running dry.

At 2:00 PM, look for the Federal Reserve's release of its August 5th meeting minutes. As seen on Friday, following the speech by Ben Bernanke in Jackson Hole, the market is currently very sensitive to inflation speak and the Fed's take on it. If we could sit the market down and have an interview with it, I expect it would express its feelings this way. It would say, "well, I would like to see the Fed wait a while yet before starting to raise interest rates. At the same time, I hope data is not as dramatically bearish as last week's PPI report." The housing market needs inflation expectations to ease, so that long-term rates might back up a bit and allow some support for borrowers.

Industry conference activity picks up each quarter post earnings season, and thus offers analysts a chance to see sunlight and breath a bit of fresh air. Morgan Stanley's (NYSE: MS) Semiconductor Conference starts on Tuesday in Chicago. The earnings schedule follows below.

Earnings Announcements for Tuesday, August 26 Company Symbol Time ACHENG RELAY 000922.SZ Time Not Supplied ACOTEL GROUP S.P.A ACO.MI Time Not Supplied Aggreko plc AGK.L Before Market Open AIR CHINA LTD AICAF.PK Time Not Supplied American Eagle Outfitters Inc AEO Before Market Open ANHUI HELI CO LTD AHUHF.PK Time Not Supplied ANHUI HUAMAO TEXTILE CO 000850.SZ Time Not Supplied APA GROUP APA.AX Time Not Supplied APEX BIOTECHNOLOGY CORP 1733.TW After Market Close Applied Signal Technology APSG After Market Close Axon Group plc AXO.L Before Market Open BABCOCK & BROWN INFRASTRUCTURE BBI.AX Time Not Supplied Banca Popolare di Milano PMI.MI Time Not Supplied BANK OF COMMUNICATIONS CO. LTD 3328.HK Time Not Supplied Bank Of Montreal BMO Time Not Supplied Bank of Nova Scotia BNS Time Not Supplied BANQUE CANTONALE DU VALAIS BNQEF.PK Time Not Supplied BAOJI DEPARTMENT STORE 000796.SZ Time Not Supplied BATM Advanced Communications BVC.L Time Not Supplied BECTON PROPERTY GROUP LTD BEC.AX Time Not Supplied BEIJING DHC DIGITAL TECHNOLOGY CO 002065.SZ Time Not Supplied BEIJING HUAYE REALESTATE CO. LTD 600240.SS Time Not Supplied BEIJING ZHONGCHUANG TELECOM TEST CO 600485.SS Time Not Supplied BENDIGO MINING LTD BDG.AX Time Not Supplied Big Lots, Inc. BIG Before Market Open BOART LONGYEAR LIMITED BLY.AX Time Not Supplied Bonifiche Ferraresi S.p.A BF.MI Time Not Supplied Borders Group Inc. BGP After Market Close Bovis Homes Group PLC BVS.L Before Market Open Cairn Energy plc CNE.L Time Not Supplied CATHAY FINL HLDG LTD 2882.TW Time Not Supplied CBH RESOURCES LIMITED CBH.AX Time Not Supplied CELEBRITIES REAL ESTATE DEVELOPMENT 000667.SZ Time Not Supplied Chico's FAS, Inc. CHS Before Market Open CHINA COSCO HLDGS CO LTD CICOF.PK After Market Close CHINA DONGFANGHONG SPACESAT COLTD 600118.SS Time Not Supplied CHINA LIFE INSURANCE CO LTD LFC Time Not Supplied CHINA MINSHENG BK CORP LT 600016.SS Time Not Supplied CHINA YURUN FOOD GRP LTD 1068.HK Time Not Supplied CHONGQING DONGYUAN STEEL CO 000656.SZ After Market Close CITIC OFFSHORE HELICOPTER CO CTCOF.PK After Market Close COFCO PROPERTY (GROUP) CO LTD 000031.SZ After Market Close Corinthian Colleges COCO Before Market Open CRH plc CRH Time Not Supplied Daktronics DAKT Before Market Open DAYE SPECIAL STEEL CO 000708.SZ Time Not Supplied DFDS A/S DFDS.CO 07:00 am ET Dmatek Ltd DTK.L Before Market Open DONG E E JIAO CO LTD SHANGDONG DEEJF.PK Time Not Supplied Dycom Industries DY After Market Close EM.Sport Media AG ETV.F Time Not Supplied ENERGY DEVELOPMENTS LTD ENE ENE.AX Time Not Supplied FENG TAY ENTERPRISE 9910.TW Time Not Supplied FENGHUA ADVANCE TECHNOLOGY HLDG 000636.SZ After Market Close FLIGHT CENTRE LIMITED FLT.AX Time Not Supplied FORNIX BIOSCIENCES NV FORBI.AS Time Not Supplied FOSTER'S GROUP FGL.AX Time Not Supplied FUJIAN CEMENT CO. LID 600802.SS Time Not Supplied GANSU QILIANSHAN CO LTD GASUF.PK Time Not Supplied GEODYNAMICS LIMITED GDYMF.PK Time Not Supplied GT SOLAR INTERNATIONAL INC SOLR After Market Close GUANGDONG KANGMEI PHARMACEUTICAL 600518.SS Time Not Supplied GUANGDONG XINHUI MEDIA NYLON CO 000782.SZ Time Not Supplied GUANGZHOU DEVELOPMENT INDUSTRY GZDVF.PK Time Not Supplied GUANGZHOU FRIENDSHIP CO LTD GZHFF.PK Time Not Supplied GUOMAI TECHNOLOGIES INC. 002093.SZ Time Not Supplied Hain Celestial Group HAIN Time Not Supplied HARBIN DONGAN AUTO ENGINE CO LTD 600178.SS Time Not Supplied HUNAN ZHENGHONG SCI & TECH DEV CO. 000702.SZ Time Not Supplied INNER MONGOLIA BAOTOU STEEL RARE-EA 600111.SS Time Not Supplied J. Crew Group, Inc. JCG After Market Close JIANGSU HENGTONG PHOTOELECTRIC STOC 600487.SS Time Not Supplied JIANGSU HOLLY CORP 600128.SS Time Not Supplied JIANGSU SANFANGXIANG INDUSTRY CO 600370.SS Time Not Supplied JIANGXI CHANGE AUTOMOBILE 600372.SS Time Not Supplied JIANGXI HONGDU AVIATION INDS JNXIF.PK Time Not Supplied JINLING PHARMACEUTICAL 000919.SZ Time Not Supplied LIUZHOU LIANGMIANZHEN CO 600249.SS Time Not Supplied LTX Corporation LTXX Before Market Open MACQUARIE CAPITAL ALLIANCE GROUP MCQ.AX 9:00 pm ET Macquarie Communications Infrastructure Group MCG.AX Time Not Supplied MACQUARIE COUNTRYWIDE TRUST MCW.AX 8:00 pm ET MACQUARIE MEDIA GROUP MMG.AX 7:00 pm ET MCPHERSONS LTD MCP.AX Time Not Supplied Meliorbanca MEL.MI Time Not Supplied MGP Ingredients MGPI Before Market Open MIRVAC GROUP MGR.AX Time Not Supplied MIRVAC INDUSTRIAL TRUST MVIDF.PK Time Not Supplied Montefibre MF.MI Time Not Supplied Neue Sentimental Film AG NF7.F Time Not Supplied NEWAYS ELECTRONICS INTERNATIONAL NEWAY.AS Time Not Supplied NINGBO MARINE CO. LTD. 600798.SS Time Not Supplied NINGBO THERMAL POWER CO.LTD 600982.SS Time Not Supplied Oerlikon Corporation AG OERL.VX Time Not Supplied OUDH SUGAR MILLS LTD OUDHF.PK Time Not Supplied PRIMARY HEALTH CARE LIMITED PRY.AX Time Not Supplied Rio Tinto plc RTP Before Market Open Sanderson Farms SAFM Before Market Open SANY HEAVY INDUSTRY CO LTD 600031.SS Time Not Supplied Schiapparelli 1824 SCH.MI Time Not Supplied Sears Canada Inc. SCC.TO Time Not Supplied SECHE ENVIRONEMENT SA CHANGE SCHP.PA After Market Close SHANDONG HUALU HENG CHEM IND SHCIF.PK Time Not Supplied SHANGHAI CONSTRUCTION 600170.SS Time Not Supplied SHANGHAI HAINIAO ENTERPRISE DEV CO 600634.SS Before Market Open SHANGHAI HAIXIN GROUP 900917.SS Time Not Supplied SHANGHAI INTL PRT GROUP CO LTD SIPGF.PK Time Not Supplied SHANGHAI JINLING CO 600621.SS Before Market Open SHANGHAI ZIJIANG ENTERPRISE GROUP 600210.SS Before Market Open SHANTOU ELECTRIC POWER DEVELOPMENT 000534.SZ Before Market Open SHANXI COKING CO 600740.SS Time Not Supplied SHANXI GUANLU CO 000831.SZ Time Not Supplied SHANXI ZHANGZE ELECTRIC POWER 000767.SZ Time Not Supplied SHENZHEN GUANGJU ENERGY 000096.SZ Time Not Supplied SHENZHEN NEPTUNUS BIOENGINEERING 000078.SZ Time Not Supplied SICHUAN HAITE HIGH-TECH CO. LTD 002023.SZ Before Market Open SIME DARBY BHD NEW 4197.KL Time Not Supplied SINOPEC YIZHENG CHEMICAL FIBRE 600871.SS Time Not Supplied Smithfield Foods SFD Before Market Open SORIN SPA MILANO SRN.MI Time Not Supplied Streamline Health Solutions, Inc. STRM After Market Close Synnove Finden ASA SFM.OL Time Not Supplied Tenon Ltd. TEN.NZ Time Not Supplied Thornburg Mortgage, Inc. TMA Before Market Open TIANJIN DEP STORE CO LTD TNJNF.PK Time Not Supplied TIBET TIANLU CO. LTD. 600326.SS Time Not Supplied TOLL HOLDINGS LIMITED TOL.AX Time Not Supplied Topdanmark A/S TOP.CO Time Not Supplied Tuesday Morning Corporation TUES Before Market Open Unione di Banche Italiane Spa UBI.MI Time Not Supplied UTV Media PLC UTV.L Before Market Open VALAD PROPERTY GROUP VPG.AX Time Not Supplied Versant VSNT Time Not Supplied WELLINGTON DRIVE TECH WDT.NZ Time Not Supplied WOOLWORTHS LIMITED WOW.AX Time Not Supplied XIAN MINSHENG GROUP 000564.SZ Time Not Supplied ZHENGZHOU YUTONG BUS CO. LTD. 600066.SS Time Not Supplied

Wednesday

Durable Goods Orders headlines the schedule on Wednesday. At 8:30 in the pre-market, economists anticipate the July reading of Durable Goods Orders will post an increase of 0.1%. Orders rose 0.8% in June, marking the first rise for the entire year. Also look for Atlanta Fed President Dennis Lockhart's address on inflation to potentially move markets.

Mortgage Activity has not been as inactive as it is now in a century according to some measures, as reported by Barron's over the weekend. We need inflation concern to settle, banks to settle up on risky debts and free themselves from the burden of those they still hold, and unemployment and economic growth to turn the corner. Not a small task... We'll get a fresh look at mortgage activity with the regular Purchase Applications Report from the Mortgage Bankers Association in the early AM on Wednesday.

The EIA Petroleum Status Report is due at 10:30. Last week, while oil inventories increased and are in the sweet spot of their average range for this time of year, gasoline inventories declined dramatically and are well short of normal. Meanwhile, on Monday, gasoline was reported down 15 cents over the past two weeks... Is there no mercy for gasoline refiners!?

Earnings Announcements for Wednesday, August 27 Company Symbol Time 1ST DENTAL LABORATORIES FDT.L Time Not Supplied ABACUS PROPERTY GROUP ABP.AX Time Not Supplied ABC LEARNING CENTRES ABS.AX Time Not Supplied ALLIED FARMERS ALF.NZ Time Not Supplied Angeion Corp ANGN 4:00 pm ET ANTICHI PELLETTIERI S P A ANPEF.PK Time Not Supplied AUSTRALIAN VINTAGE LIMITED AVG AUVGF.PK Time Not Supplied AUSTRALIAN WEALTH MGT LTD AUW.AX Time Not Supplied Autogrill SpA AGL.MI Time Not Supplied Axis-Shield plc ASD.L Before Market Open Banca Popolare Etruria-Lazio PEL.MI Time Not Supplied BANK LEUMI LE ISRAEL TEL AVIV LUMI.TA Before Market Open BEIJING NEW BUILDING MATERIALS 000786.SZ Time Not Supplied Benihana Inc. BNHNA After Market Close BONG LJUNGDAHL AB BONG.ST Time Not Supplied Brit Insurance Holdings PLC BRE.L Before Market Open Brown Shoe Company, Inc. BWS Before Market Open BURE EQUITY AB BURE.ST Time Not Supplied CALAN HEALTHCARE PPTYS TRUST DHN.BE Time Not Supplied CAMEO COMMUNICATIONS INC 6142.TW Time Not Supplied Canadian Imperial Bank of Commerce CM Time Not Supplied Candover Investments plc CDI.L Before Market Open CASH STORE FINL SVCS INC CSF.TO After Market Close Cattolica Assicurazioni CASS.MI Time Not Supplied CEC CORECAST CORPORATION LIMITED 600764.SS Time Not Supplied Charming Shoppes CHRS Before Market Open China Eastern Airlines CEA Time Not Supplied CHINA GREATWALL COMPUTER SHENZHEN 000066.SZ Time Not Supplied China Mobile CHLKF.PK Time Not Supplied China National Offshore Oil Corporation CEO Time Not Supplied CHINA NATIONAL SOFTWARE& SERVICE CO 600536.SS Time Not Supplied China Nepstar Chain Drugstore Ltd. NPD Before Market Open CHINA SHIP CONTAINER LINES CO CITAF.PK Time Not Supplied CHINA-KINWA HIGH TECHNOLOGY CO. LTD 600110.SS After Market Close CHONGQING GANGJIU 600279.SS After Market Close CHONGQING IRON & STEEL CO LTD CGQNF.PK Time Not Supplied Coldwater Creek CWTR Time Not Supplied Communisis PLC CMS.L Before Market Open CONNECTEAST GROUP CEU.AX Time Not Supplied Credito Artigiano CRA.MI Time Not Supplied DATANG INTL PWR GENERATN LTD DIPGF.PK Time Not Supplied Day Software Holding AG DAYN.SW 01:00 am ET Dollar Tree Stores DLTR Time Not Supplied DONGFENG MOTOR CORP DGFGF.PK After Market Close eLong Inc LONG Time Not Supplied ENVESTRA LIMITED EVSRF.PK Time Not Supplied Foxconn Intl Hldg Ltd 2038.HK Time Not Supplied FRESHTEL HLDGS LTD FRE.AX Time Not Supplied FuelCell Energy FCEL After Market Close FUSHUN SPECIAL STEEL 600399.SS Time Not Supplied G4S plc GFS.L Before Market Open Gander Mountain Co. GMTN Before Market Open Genmab A/S GNMSF.PK Time Not Supplied Gericom AG GRO.F Time Not Supplied Gewiss S.p.A. GEW.MI Time Not Supplied GIANT INTERACTIVE GROUP INC GA After Market Close Glanbia plc GLB.L Before Market Open GLOBE INTERNATIONAL LTD GLB.AX Time Not Supplied GLOUCESTER COAL LTD GCL.AX Time Not Supplied GRD Limited GRD.AX Time Not Supplied Greif Brothers GEF After Market Close GRIFOLS SA GRF.MC Time Not Supplied GUOYUAN SECURITIES CO. LTD. 000728.SZ Time Not Supplied HASTIE GROUP LIMITED HST.AX Time Not Supplied HEICO HEI After Market Close Heineken N.V. HEIA.AS 01:00 am ET HJELLEGJERDE ASA HJE.OL Time Not Supplied HUNAN LIUYANG FIREWORKS CO. LTD. 600599.SS Time Not Supplied Immobiliare Lombarda IML.MI Time Not Supplied ING INDUSTRIAL FUND IIF.AX Time Not Supplied IOOF HOLDINGS LTD IFL.AX Time Not Supplied Irish Life and Permanent Plc IPM.L Before Market Open Isagro S.p.A. ISG.MI Time Not Supplied IT Holding S.p.A. ITH.MI Time Not Supplied Jensen & Moller Invest A/S JMI.CO Time Not Supplied Jo-Ann Stores, Inc. JAS After Market Close Johnston Press plc JPR.L Before Market Open Kingspan Group plc KGP.L Before Market Open LifeCycle Pharma, Inc LFCYF.PK Time Not Supplied LOOKERS LOOK.L Time Not Supplied MACQUARIE DDR TRUST MDT.AX 7:00 pm ET MARCH NETWORKS CORP MN.TO After Market Close Mediterranea Acque MEA.MI Time Not Supplied Men's Wearhouse MW After Market Close MMC CORP BHD MCPNF.PK Time Not Supplied MONEYSUPERMARKET.COM GROUP PLC MONY.L Before Market Open MULTIPLEX ACUMEN PROPERTY FUND MPF.AX Time Not Supplied NATIONAL HIRE GROUP NHR.AX Time Not Supplied NeuroSearch A/S NEUR.CO Time Not Supplied OFFSHORE OIL ENGINEERING CO OFHOF.PK Time Not Supplied Olidata OLI.MI Time Not Supplied ORIGIN AGRITECH LIMITED SEED After Market Close ORIGIN ENERGY LTD ORG.AX 7:00 pm ET OSI Systems OSIS Before Market Open PetroChina Company Limited PTR Time Not Supplied Petrofac Limited PFC.L Before Market Open PETROJACK AS JACK.OL Before Market Open PETROLIA DRILLING PDR.OL Before Market Open PHISON ELECTRONICS CORP PISNF.PK Time Not Supplied Prysmian Cables & Systems PRY.MI Time Not Supplied Reno De Medici S.p.A RDM.MC Time Not Supplied RESORTS WORLD BHD RSWSY.PK Time Not Supplied RIVERCITY MOTORWAY GROUP RCY.AX Time Not Supplied SAIZEN REAL ESTATE INVESTMENT TRUST DZ8U.SI Time Not Supplied SEB S.A. SK.PA After Market Close SEGRO plc SGRO.L Before Market Open Serco Group plc SRP.L Before Market Open SHANDONG PHARMACEUTICAL GLASS SDGPF.PK Time Not Supplied SHANGHAI ZHENHUA PORT MACHY CP SZPAF.PK Before Market Open SICHUAN HONGDA CHEMICAL INDUSTRY CO SIHAF.PK Time Not Supplied SOFT COMPUTING SFT.PA Time Not Supplied Solarfun Power Holdings Co. Ltd. SOLF Before Market Open SOLERA HOLDINGS INC SLH After Market Close Spirax-Sarco Engineering SPX.L Before Market Open SPORT SUPPLY GROUP INC DEL RBI Before Market Open Standex International Corp. SXI Before Market Open SUNTIME INTERNATIONAL ECONOMIC-TRAD 600084.SS Time Not Supplied SWS Group, Inc. SWS After Market Close Synovis Life Technologies, Inc. SYNO Before Market Open Talbots TLB Time Not Supplied Taylor Nelson Sofres plc TNS.L Before Market Open TIANJIN FAW XIALI AUTOMOBILE CO 000927.SZ Time Not Supplied TIANJIN GUANGYU DEVELOPMENT CO 000537.SZ Time Not Supplied TIANJIN QUANYE BAZAAR (GP) CO. LTD 600821.SS Time Not Supplied TITAN PETROCHEMICALS GRP LTD TPGFF.PK Time Not Supplied TIVO INC TIVO After Market Close TRANSPACIFIC INDUSTRIES GROUP LTD TPI.AX Time Not Supplied Tullow Oil plc TLW.L Before Market Open VECTOR VCT.NZ Time Not Supplied Vitec Group PLC VTC.L Before Market Open WEIFU HIGH-TECHNOLOGY CO 200581.SZ Time Not Supplied WESTFIELD GROUP WDC.AX Time Not Supplied WOLONG ELECTRIC GROUP CO LTD 600580.SS Time Not Supplied Woodside Petroleum WPL.AX Time Not Supplied WOTIF.COM HOLDINGS LTD WTIFF.PK Time Not Supplied XETA Technologies XETA After Market Close YANTAI CHANGYU PIONEER WINE YCPAF.PK Time Not Supplied Yule Catto & Company plc YULC.L Before Market Open

"Just when you thought Graham was an old crack, he turns out to be a cracker..."

Thursday

The country will be split into two camps on Thursday, not Democrat and Republican though. Remember the senator (Graham) who said we're all whiners cause there is no recession? Well, we bet you'll remember him on Thursday when the Preliminary GDP Report is released for Q2. The Advanced Report of GDP offered 1.9% growth, but the revised and vibrant preliminary copy is expected to show GDP actually rose 2.7%! Just when you thought Graham was an old crack, he turns out to be a cracker (Don't ask me what I mean here, because I'm not sure even I know). Before you get too excited, the reason for the big number is in part due to weaker imports (not because American goods are more competitive at home, but because we can't afford anything anymore). At the same time, exports continued to find hungry foreign interest, thanks to that so called strong dollar policy (read weak dollar). Corporate Profits, a component of the GDP data, is due at the same time.

Weekly Jobless Claims has got your favorite Greek up early on Thursdays, as evidenced by our back to back topic specific articles on this report the past two weeks. The consensus is looking for a measure of 427K this time around, after last week's 432K. With consensus almost useless on this data point, what clearly matters most here is direction and the four-week moving average, both of which have been deteriorating. By the way, we promise the third article will be the charm. Look for Natural Gas data at 10:30.

Earnings Announcements for Thursday, August 28 Company Symbol Time 888 Holdings plc 888.L Before Market Open Accor SA AC.PA Before Market Open ACEGAS SPA AEG.MI Time Not Supplied ACQUE POTABILI ACP.MI Time Not Supplied Aegis Group plc AGS.L Before Market Open Aer Lingus PLC AERL.L 02:00 am ET AEROPORTO DI VENEZIA MARCO POLO SPA (SAVE) SAVE.MI Time Not Supplied Air Berlin PLC AB1.F Before Market Open Alea Group ALEA.L Time Not Supplied ALLREAL HLDG AG ZUG ALRHF.PK Time Not Supplied AMEC plc AMEC.L Before Market Open AMP LIMITED AMP.AX Time Not Supplied AMP LIMITED AMP.AX Time Not Supplied ANGLO-EASTERN PLANTATIONS AEPLF.PK Time Not Supplied ARISTOCRAT LEISURE ALL.AX Time Not Supplied Aruba Networks, Inc. ARUN After Market Close ATA Inc. ATAI Time Not Supplied Avis Europe plc AVE.L Time Not Supplied BABCOCK & BROWN CAPITAL LIMITED BCM.AX Time Not Supplied BABCOCK & BROWN WIND PARTNER BBW.AX Time Not Supplied Banca Monte Dei Paschi Di Siena BMPS.MI Time Not Supplied Banca Popolare di Intra PIN.MI Time Not Supplied Banca Popolare di Spoleto BAOPF.PK Time Not Supplied Banca Profilo S.p.A. PRO.MI Time Not Supplied Banco Di Desio Brianza SpA BDB.MI Time Not Supplied Bank Hapoalim POLI.TA Time Not Supplied BATENBURG BEHEER NV BATEN.AS Time Not Supplied BBA Aviation Plc BBA.L Time Not Supplied Bouygues S.A. EN.PA 11:45 am ET BUREAU VERITAS BVI.PA Time Not Supplied C & O PHARMACEUTICAL TECH HLDG CPMRF.PK 12:00 am ET Cairo Communication S.p.A CAI.MI Time Not Supplied Carbone-Lorraine SA CRL.PA Time Not Supplied Carraro S.p.A CARR.MI Time Not Supplied Casino Guichard-Perrachon S.A. CO.PA Before Market Open Cattles plc CTT.L Before Market Open Cembre S.p.A CMB.MI Time Not Supplied CENTRO PROPERTIES GROUP CEOPF.PK Time Not Supplied Charter plc CHTR.L Time Not Supplied Chaucer Holdings PLC CHU.L Before Market Open CHINA FINANCE ONLINE CO JRJC After Market Close CHONGQING JIULONG ELECTRIC POWER 600292.SS After Market Close CHUNGHWA TELECOM CO LTD CHT After Market Close Class Editori S.p.A. CLE.MI Time Not Supplied CNHTC JINAN TRUCK CO. LTD. 000951.SZ After Market Close COFFEY INTERNATIONAL LTD COF COF.AX Time Not Supplied COLLECTION HOUSE LIMITED CLH.AX Time Not Supplied Computacenter plc CCC.L Before Market Open Conn's, Inc. CONN Before Market Open Corin Group plc CRG.L Before Market Open Credit Agricole ACA.PA 01:00 am ET Credito Bergamasco S.p.A CB.MI Time Not Supplied Credito Valtellinese CVAL.MI Time Not Supplied CTAC NV CTAC.AS Time Not Supplied CTS EVENTIM AG EVD.F Time Not Supplied DAQIN RAILWAY CO LTD DAQIF.PK Time Not Supplied DE LONGHI DLG.MI Time Not Supplied Del Monte Foods DLM Time Not Supplied dELiA's Inc. DLIA After Market Close Dell, Inc. DELL After Market Close DFI 2397.TW Time Not Supplied Diageo PLC DGE.L 02:00 am ET DIGITAL MULTIMEDIA TECH SPA LI DMT.MI Time Not Supplied DISTRIGAS DIST.BR Time Not Supplied Dollar Financial Corp. DLLR Time Not Supplied EIDSIVA REDERI ASA EID.OL Time Not Supplied EIFFAGE FGR.PA After Market Close Energy Conversion Devices ENER Before Market Open Essilor International EF.PA Time Not Supplied Esterline Technologies ESL After Market Close ETAM DEVELOPPEMENT TAM.PA After Market Close Eurazeo EUZOF.PK Time Not Supplied EVA AIRWAYS 2618.TW Time Not Supplied EVN AG EVN.VI Time Not Supplied FASTPARTNER AB FPAR.ST Time Not Supplied FEELGOOD SVENSKA FEEL.ST Time Not Supplied FELIX RESOURCES LTD FLX.AX Time Not Supplied FERREXPO PLC FXPO.L Before Market Open FIDIA SPA FDA.MI Time Not Supplied Fielmann AG FIE.F Time Not Supplied Filtrona plc FLTR.L Time Not Supplied FKP LTD FKP.AX Time Not Supplied Fleetwood Enterprises, Inc. FLE Time Not Supplied Forth Ports PLC FPT.L Time Not Supplied FOSHAN PLASTIC GROUP CO 000973.SZ Time Not Supplied Fred's FRED Time Not Supplied FULLSIX SPA FUL.MI Time Not Supplied GALP ENERGIA SGPS GLPEF.PK Time Not Supplied Genesco GCO Before Market Open GENTING BERHAD GEBHY.PK Time Not Supplied Gerber Scientific GRB Before Market Open GFK AG GFK.F Before Market Open Goldenport Holdings Inc GPRT.L Before Market Open GOODTECH ASA GOD.OL Time Not Supplied Gottschalks Inc. GOT After Market Close GranitiFiandre GRF.MI Time Not Supplied GREE ELECTRICAL APP INC OF ZHUHAI 000651.SZ Time Not Supplied GRUPO CATALANA OCCIDENTE SA GCNJF.PK Time Not Supplied GUANGDONG RONGTAI IND CO 600589.SS Time Not Supplied GUANGZHOU BAIYUN INTL AIRPORT GZBYF.PK Time Not Supplied GUNNS LIMITED GNS.AX Time Not Supplied Hedegaard A/S PDPHF.PK Time Not Supplied HELLABY HOLDINGS LTD HBY.NZ Time Not Supplied Hellenic Telecommunications OTE Time Not Supplied Henderson Group plc HGI.L Before Market Open HERITAGE OIL CORP HOX.L Time Not Supplied HIKMA PHARMACEUTICALS PLC HKMPF.PK Before Market Open Huaneng Power International HNP Time Not Supplied HUBEI GOLDEN RING 000615.SZ Time Not Supplied Hunting PLC HTG.L Before Market Open ILIAD ILD.PA Before Market Open IMI plc IMI.L Before Market Open Immsi S.p.A. IMS.MI Time Not Supplied Impala Platinum Holdings Limited IMPUF.PK Before Market Open Impregilo IPG.MI Time Not Supplied IMS(INTERNATIONAL METAL SERVICE) IMS.PA After Market Close IntesaBci SpA ISP.MI Time Not Supplied IP GROUP IPO.L Time Not Supplied Jamba Juice JMBA After Market Close KAS ASSOCIATE NV CERT VAN AAND KA.AS Before Market Open Kazakhmys plc KAZ.L Before Market Open KINGS TOWN CONSTRUCTION CO 2524.TW Time Not Supplied KINGSOFT CORP 3888.HK Time Not Supplied Kirkland's, Inc. KIRK Before Market Open KONINKLIJKE BAM GROEP NV BAMNB.AS Before Market Open KWEICHOW MOUTAI 600519.SS Time Not Supplied KYE SYSTEM CORP 2365.TW Time Not Supplied La Doria S.p.A LD.MI Time Not Supplied LaBarge, Inc. LB Before Market Open Lagardere SCA MMB.PA Time Not Supplied Lavorwash S.p.A LAV.MI Time Not Supplied Layne Christensen LAYN Time Not Supplied LINKTONE LTON After Market Close MACARTHUR COAL LTD MCC.AX 7:30 pm ET MACINTOSH RETAIL GROUP NV MACIN.AS Before Market Open Maffei S.p.A MAF.MI Time Not Supplied Magma Design Automation, Inc. LAVA After Market Close Mariella Burani S.p.A MBFG.MI Time Not Supplied Marvell Technology Group Ltd. MRVL Time Not Supplied MEDIACONTECH MCH.MI Time Not Supplied MELROSE RESOURCES MRS.L Time Not Supplied MICROS System MCRS After Market Close Mirato MRT.MI Time Not Supplied Monrif S.p.A MON.MI Time Not Supplied MOSAID Technologies MSD.TO After Market Close MUHIBBAH ENGINEERING BHD MUHBF.PK After Market Close NAMSOS TRAFIKKSELSKAB NAM.OL Time Not Supplied National Bank of Canada NA.TO Time Not Supplied National Bank of Greece SA NBG 10:00 am ET Natixis NTXFF.PK Before Market Open NET 1 UEPS TECHNOLOGIES INC UEPS After Market Close NETEZZA CORP NZ Before Market Open New World Resources BV NWR.L Time Not Supplied Novell, Inc. NOVL After Market Close NUPLEX INDUSTRIES NPX.NZ Time Not Supplied OLAM INTERNATIONAL LTD OLMIF.PK After Market Close Omega Pharma N.V. OME.BR 11:45 am ET Omnivision Technologies OVTI After Market Close ON TRACK INNOVATION LTD OTIV Before Market Open Orco Property Group ORC.PA Time Not Supplied PARIS RE Holdings Limited PRI.PA 01:30 am ET Parity Group plc PTY.L Before Market Open Parmalat SPA PRF.MI Time Not Supplied Pendragon PLC PDG.L Before Market Open PETSEC ENERGY LIMITED PSJ Time Not Supplied PetSmart PETM After Market Close PREMAFIN FINANZIARIA - S.p.A PF.MI Time Not Supplied Premier Foods plc PFD.L Before Market Open Premier Oil plc PMO.L Before Market Open PRIMA INDUSTRIE SPA PRI.MI Time Not Supplied Prosafe ASA PRS.OL 02:30 am ET Quanex NX Time Not Supplied Royal Bank Of Canada RY Time Not Supplied SAES Getters SG.MI Time Not Supplied SAFT GROUPE SA SAFT.PA Time Not Supplied Savills plc SVS.L Before Market Open SEADRILL LIMITED SDRLF.PK Time Not Supplied Sears Holdings Corp SHLD Before Market Open SELECT VACCINES LIMITED SLT.AX Time Not Supplied SGI SGIC After Market Close SHANGHAI INTERNATIONAL AIRPORT CO 600009.SS Time Not Supplied SHANGHAI JINJIANG INTL HTL DEV SJHOF.PK Before Market Open SHANGHAI PHARMACEUTICAL CO 600849.SS Time Not Supplied Sigma Designs SIGM After Market Close Silicon Sensor International SIS.F Time Not Supplied SIMAC TECHNIEK NV SIMAC.AS Before Market Open Skanditek Industriforvaltning AB STEK.ST 03:00 am ET SMG PLC SMG.L Before Market Open Smurfit Sisa SMU.MI Time Not Supplied SOL SOL.MI Time Not Supplied SourceForge, Inc. LNUX After Market Close Sparbank Vest A/S SPB.CO Time Not Supplied SPRING SOFT SYSTEMS CO LTD 2473.TW Time Not Supplied ST SHINE OPTICAL STSHF.PK Time Not Supplied STERN GROEP NV STRN.AS Time Not Supplied SUPER CHEAP AUTO GROUP LIMITED SUL.AX Time Not Supplied SWORD GROUP SWDGF.PK After Market Close TAINAN SPINNING 1440.TW After Market Close TAS(TECNOLOGIA AVANZATA SISTEMI) TAS.MI Time Not Supplied TATTERSALLS LTD TTS.AX Time Not Supplied TECHNOLOGY NEXUS AB NEXU.ST Time Not Supplied Telvent TLVT Before Market Open Tiffany & Co. TIF Before Market Open TOD S GROUP SPA TOD.MI Time Not Supplied Toronto Dominion Bank TD Before Market Open TUNDRA SEMICONDUCTOR CORP TUN.TO After Market Close Uni Land SpA UNL.MI Time Not Supplied UNIVERSAL SCIENTIFIC INDUSTRIAL 2350.TW Time Not Supplied Urologix, Inc. ULGX Time Not Supplied UXC LIMITED UXC.AX Time Not Supplied VALARTIS GROUP AG OZHDF.PK Time Not Supplied VENTRACOR LIMITED VCR.AX Time Not Supplied Venture Production plc VPC.L Before Market Open Vernalis Group plc VER.L Before Market Open Vimpel Communications VIP Before Market Open Wendel MF.PA After Market Close Williams-Sonoma WSM Time Not Supplied Wimm-Bill-Dann Foods OJSC WBD Time Not Supplied Wind River Systems WIND After Market Close Zale Corporation ZLC Before Market Open

Friday

Hey hey, "The Greek's" little brother celebrates a birthday today. Problem is, I haven't known what to get him since he outgrew Star Wars and G.I. Joe. Any ideas? I'm thinking a potato. Every once in a while, I check to see if anybody is really reading...

Of slightly more interest to you, Personal Income and Outlays are due for the month of July at 8:30 in the AM. Income is seen declining by 0.2%, something that would actually be pleasing to the Fed as they keep an eye on the efforts of inflation to embed. The Fed actually prefers the terms "anchor" and "unanchored" while the ECB prefers "embed" and "embedding." You say potAto, I say Potato... Here's the caveat: income should decline on fewer hours worked, which would have little to do with deflation and more to do with, well, less hours worked.

"Even good news is bad news these days."

Consumer Spending is expected to increase 0.3%. Three words, "back to school." Also, this would compare with a 0.6% rise the month before. So, relatively speaking, bad news here. Even good news is bad news these days...

The Chicagoland manufacturing take, also known as the National Association of Purchasing Managers - Chicago, is seen ranking at 49.8 in August, thus teetering between expansion and contraction. The NAPM figure somehow managed 50.8 in July.

Reuters/Michigan Consumer Sentiment is seen at 62.0 for August, comparing against 61.7 when last checked. We might see a greater improvement on factors like lower gasoline prices and heat exhaustion. Look for Farm Prices at 3:00 PM, and get lost to some beach somewhere, while I tend to things around here. Fixed income markets close early (2:00 PM) ahead of the long Labor Day weekend. Save a burger for me.

Earnings Announcements for Friday, August 29 Company Symbol Time 104 CORP OFRCF.PK Time Not Supplied ACTELIOS ACT.MI Time Not Supplied ACTEOS EOS.PA Time Not Supplied AEROPORTO DI FIRENZE ADF SPA AFI.MI Time Not Supplied Aeroports de Paris ADP.PA Before Market Open AGA Foodservice Group plc AGA.L Time Not Supplied AGR GROUP ASA AGR.OL Time Not Supplied ALLCO FINANCE GROUP LIMITED AFG.AX Time Not Supplied Anglo Pacific Group plc APF.L Before Market Open ARCADIA METAL INDS C ROKAS SA AZZGF.PK Time Not Supplied Arena SpA ARE.MI Time Not Supplied Areva CI ARVCF.PK After Market Close ARIMA COMPUTER CORP. 2381.TW After Market Close Artè S.p.A. YAE.MU 05:00 am ET BABCOCK & BROWN POWER BBP.AX Time Not Supplied Banca Carige SpA CRG.MI Time Not Supplied Banca Italease BIL.MI Time Not Supplied Beghelli S.p.A. BE.MI Time Not Supplied Benetton Group BNGPY.PK Time Not Supplied BETER BED HOLDING NV UDEN BBED.AS Before Market Open Bien-Zenker AG BIE.F Time Not Supplied BONE MEDICAL LIMITED BNE.AX Time Not Supplied Bradford & Bingley plc BB.L Before Market Open BRAMMER BRAM.L Time Not Supplied Brembo SPA BRE.MI Time Not Supplied Brioschi Finanziaria BRI.MI Time Not Supplied BRUNEL INTERNATIONAL BRNL.AS Time Not Supplied Buongiorno Vitaminic SpA BNG.MI Time Not Supplied C.A.T. OIL AG O2C.F Time Not Supplied CAMPOFRIO ALIMENTACION SA CPF.MC Time Not Supplied Carrefour S.A. CRERF.PK Time Not Supplied CATHAY REAL ESTATE DEVELOPMENT COMPANY LIMITED 2501.TW After Market Close CAVALIER CORP CAV.NZ Time Not Supplied Centrale del Latte di Torino & C. S.p.A. CLT.MI Time Not Supplied CENTRO RETAIL TRUST CER.AX Time Not Supplied Ceramiche Ricchetti RIC.MI Time Not Supplied CHARGEURS CRI.PA Time Not Supplied CHARLES TAYLOR CONSULTING CTR.L Time Not Supplied CHINA AIR LINES 2610.TW Time Not Supplied CHINA SINOMA INTL ENGINEERING CO. L SNMGF.PK Time Not Supplied CHINA WUYI 000797.SZ After Market Close CHONGQING SWELL HOLDING (GROUP) CO 600145.SS After Market Close CHONGQING YUKAIFA CO 000514.SZ After Market Close CITYCHAMP DARTONG CO LTD 600067.SS After Market Close CLARINS SA CLR.PA Time Not Supplied Crespi LG5.F Time Not Supplied CTT SYSTEMS CTT.ST Time Not Supplied D'ieteren DIE.BR 01:30 am ET D/S ORION ORION.CO Time Not Supplied DAHENG NEW EPOCH TECHNOLOGY INC 600288.SS After Market Close Dana Petroleum plc DNPXF.PK Before Market Open Data Service DAS.MI Time Not Supplied DeA Capital S.p.A. DEA.MI Time Not Supplied Development Securities PLC DSC.L Before Market Open Dexia DEXB.BR 01:00 am ET Dicentia A/S DICENT.CO Time Not Supplied DOMSTEIN ASA DOM.OL Time Not Supplied DONG FENG AUTOMOBILE 600006.SS Time Not Supplied EDF ENERGIES NOUVELLES EDFEF.PK Time Not Supplied Egnsbank Han Herred A/S EBH.CO Time Not Supplied El.En. SPA ELESF.PK Time Not Supplied ELEC-TECH INTERNATIONAL CO 002005.SZ After Market Close Elia System Operator SA ELIS.BR Time Not Supplied Engineering Ingegneria Informatica ENG.MI Time Not Supplied EUROCOMMERCIAL PPTY NV EUCMF.PK Before Market Open EUROFINS SCIENTIFIC ERF.PA Time Not Supplied Eutelia S.p.A. EUT.MI Time Not Supplied EVERGREEN INTL STORAGE TRANSPORT CO 2607.TW After Market Close EVRAZ GROUP S A EVGPF.PK Time Not Supplied GEZHOUBA COMPANY LTD GZHBF.PK Time Not Supplied Grafton Group plc GFTU.L Time Not Supplied Greentech Energy Systems A/S GES.CO Time Not Supplied GROUP STERIA VELIZY VILLACOUBL SRIAF.PK Time Not Supplied GUYENNE ET GASCOGNE SA GG.PA Time Not Supplied HARVEY NORMAN HOLDINGS LTD HVN.AX Time Not Supplied Hera S.p.A. HER.MI Time Not Supplied ICT AUTOMATISERING ICT.AS Time Not Supplied IFG GROUP PLC IFGPF.PK Before Market Open Ifil Finanziaria Di Partecipazioni SPA IFL.MI Time Not Supplied Independence Group NL IGO.AX Time Not Supplied INDO INTERNACIONAL SA IDO.MC Time Not Supplied Indus-Holding AG INH.F Time Not Supplied INFOTEL INF.PA Time Not Supplied INNATE PHARMA IPH.PA Time Not Supplied IPSEN S A IPSNY.PK 01:30 am ET IRIDE SPA IRDEF.PK Time Not Supplied IT LINK ITL.PA Time Not Supplied ITESOFT ITE.PA Time Not Supplied JKX OIL & GAS JKX.L Before Market Open John B. Sanfilippo & Son JBSS Time Not Supplied K LASER TECHNOLOGY INC 2461.TW Time Not Supplied KINEPOLIS GROUP KIN.BR 02:00 am ET Knightsbridge VLCCF Time Not Supplied KVERNELAND ASA KVE.OL Before Market Open Laboratorios Farmaceuticos Rovi SA ROVI.MC Time Not Supplied Lavendon Group PLC LVD.L Time Not Supplied LIVING CELL TECHNOLOGIES LTD LVCLF.PK Time Not Supplied Marshalls plc MSLH.L Before Market Open MAUREL ET PROM(ETABL.) MAU.PA Time Not Supplied Mueller Die Lila Logistik AG MLL.F Time Not Supplied NETONNET AB NON.ST Time Not Supplied NEW ZEALAND OIL & GAS NZO.NZ Time Not Supplied NICOLAS CORREA SA NEA.MC Time Not Supplied Norddeutsche Affinerie AG NDA.F Time Not Supplied OMNIA NETWORK SPA ONT.MI Time Not Supplied PartyGaming Plc PRTY.L Before Market Open PERILYA LIMITED PEM.AX Time Not Supplied Permasteelisa PMS.MI Time Not Supplied PHARMAUST LIMITED PAA.AX Time Not Supplied PPR (ex. Pinault Printemps Redoute) PP.PA 01:00 am ET PSI GROUP ASA PSI.OL Before Market Open QUANTA STORAGE 6188.TWO After Market Close RADIALL SA RLL.PA Time Not Supplied RALLYE RAL.PA Time Not Supplied Ratti S.p.A RAT.MI 04:00 am ET Regus Group plc RGU.L Before Market Open RIBER RIB.PA 11:40 am ET RIGHTMOVE PLC RMV.L Before Market Open RISANAMENTO S.p.A. RN.MI Time Not Supplied ROBERT WALTERS RWA.L Before Market Open RUBICON AMERICA TRUST RAT.AX Time Not Supplied RUBICON EUROPE TRUST GRP RUEUF.PK Time Not Supplied RUBICON LIMITED RBC.NZ Time Not Supplied SHANXI TAIGANG STAINLESS STEEL CO 000825.SZ Time Not Supplied SIMS GROUP LIMITED SGM.AX Time Not Supplied SNAI S.p.A SNA.MI Time Not Supplied Socotherm S.p.A. SCT.MI Time Not Supplied SOLAR APPLIED MTRLS TECH CORP SOPLF.PK Time Not Supplied SOPRA GROUP SOP.PA After Market Close SPYKER CARS NV SPYKR.AS Time Not Supplied Stanelco PLC SEO.L Time Not Supplied STIRLING PRODUCTS LIMITED STI.AX Time Not Supplied SVG Capital SVI.L Before Market Open TAIWAN LIFE INS 2833.TW After Market Close The Davis Service Group Plc DVSG.L Time Not Supplied The Restaurant Group plc RTN.L Time Not Supplied TIEN LAING BIOTECH CO LTD TILBF.PK Time Not Supplied TKH Group NV TWEKA.AS Time Not Supplied Trafficmaster TFC.L Before Market Open Trevi Finanziaria Industriale S.p.A TVFZF.PK Time Not Supplied TXT E-SOLUTIONS SPA TXT.MI Time Not Supplied Uniqa Versicherungen AG UQA.VI Time Not Supplied Vemer Siber Group EVE.MI Time Not Supplied VINCI DG.PA Time Not Supplied Vitesse Semiconductor VTSS.PK After Market Close YOUNGOR GROUP CO YGRUF.PK Time Not Supplied YUEN FOONG YU PAPER MNFCTRG CO 1907.TW Time Not Supplied

Wall Street Greek in no way endorses the validity of the data offered, and we will not be liable for any actions taken in reliance thereon. Please see our full disclosure at the Wall Street Greek website.

Bernanke in the Hole... Jackson

By "The Greek"

Speaking in Jackson Hole, Wyoming, Ben Bernanke appropriately themed his address, "Reducing Systemic Risk." For that matter, however, the Kansas City Fed, the host of the event, would not be outdone. The group entitled its symposium, "Maintaining Stability in a Changing Financial System!"

Article interests (NYSE: BAC, C, FNM, FRE, MHP, MCO, V, MA), (AMEX: DIA, SPY, SDS, DOG, QLD) and Nasdaq: QQQQ.

Truly Ben Bernanke's Fed is in the Hole, quite literally, in Jackson Hole, Wyoming. The yearly confab of the Federal Reserve Bank of Kansas City draws central bankers from around the world, and offers all sorts a reason to write off a pseudo-vacation as a business expense.

But, Ben's gang is in a figurative hole as well this year, as turmoil after chaos, collapse after crisis, and generally a ton of trouble streams across his desk and that of the Treasury Secretary on a regular basis these days. Poor Ben could sure use the clean air and peaceful grace of the Grand Teton Mountain right about now. Hopefully, he'll energize up for the latest crisis that awaits him in Washington on Monday morning, that of capital deficiency at Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE). As for Friday though, there was no rest for the weary, as all eyes were focused on Benjamin again.

We tortuously sieved through Benjamin's remarks for you, so don't bother, unless you suffer of insomnia. We cover Ben's key points in the paragraphs that follow, and do our best to add some color to keep you awake at the same time.

The Marshall is in Town

Even so, Ben seems to gain some charisma when he heads westward, and his own commentary was enough to raise even The Greek's unibrow. Citing the obvious, Ben noted that times is tough, and the trouble ain't over yet. Spitting a dill weed stem from his mouth, the Marshall called on his posse to stay alert as the "financial storm" has not yet subsided, and is "becoming apparent in the form of softening economic activity and rising unemployment." The Marshall even gave the outlaws some credit, when he stated that economic strife combined with inflation born of the commodity boom, created one of the most challenging economic and policy environments in memory. Is it just me, or does it sound like Bernanke reads The Greek every once in awhile... you know, maybe for weekend relief?

Economic Loop-D-Loop

When Ben made mention of an "economic feedback loop," I wondered if he was perhaps in touch with the little girl inside himself... or what. What he meant though, for you truck drivers and barge pilots who read the blog, was that he cut rates aggressively in his first response to the turmoil. His hope was to ease credit conditions in order to stave off economic weakness that might in turn drive an economic feedback loop, adding to the financial markets crisis. We should note here that we love our truck driving fans and sea faring contingent. Please honk your horn as you cruise by 1st and 81st (or up the East River) to show the love... and to lower property values in the hood enough to open up some opportunity for the homeless Greek. Quoting an infamous Philadelphian, "Cha cha cha..."

The Fed Boss-man then offered his critics an I told you so, when he reminded the Wyoming audience that he had expected commodity prices to ease as a result of global economic growth deceleration. You gotta give the man his due though, because he deserves it on this point. His success hinged on this assumption, and all signs point toward the possibility that Ben is in fact a genius. However, he qualified his statement, saying this would be the case as long as unpredictable variables did not lead to a reversal of recent trend. We're sure that in that regard, he is specifically concerned with two drivers in particular, the first being Iran. Hey, I went an entire week without mentioning Iran and suffered through a bit withdrawal as a result. I needed a fix, so give me a break. Fact is, I have an important article due regarding Iran, so keep in touch.

The second factor that likely concerns Ben is manipulation, but he and the SEC have been actively working to institute opportunistic, totalitarian-like control of the markets in question in order to fix this issue. You know what I'm talking about, the pick-and-choose naked shorting rule that traders and hedge funds now have to worry might show up in their trading pits some day.

The second element of Ben's genius is one The Greek's Steven Ferguson is concerned about, the ever-flowing cash spigot. I think we have to agree that the intended effort, to allow for more orderly deleveraging, has prevented panic and perhaps economic collapse. I know many of you angry readers want people who make mistakes to suffer the consequences, but there was serious risk related to that, perhaps just punishment, and that was the repercussion of system failure. Kala!, which means "good" with a tone of "right" in Greek, if we're not suffering now, I would hate to see true pain. Ferguson's concern, and mine, is that we may be sowing the seeds of future runaway inflation.

The third element, my dear friends, is the totalitarianism I mentioned previously. Some of the nascent regulation was clearly needed, especially in the mortgage market. We would like see the rating agencies handed their heads as well, since we believe negligence on that end played a great role in this catastrophe. After all, if the debt was not investment grade rated, derivative markets would not have assumed so. So, now Ben oversees the nation's financial system, and perhaps is planning a White House coup as well.

One other necessary bit of help the common man needs is a credit card borrower's bill of rights. These people are just raping the poorest of this nation. Miss two payments in a row and you'll understand. The same companies that are pleasant to you in your dealings today, will take you outside, rob, beat and rape you, and then collection agents who buy your debt on the cheap will turn you over and do it all again. Imagine being poor, missing a payment on your debt and then witnessing your APR skyrocket to 30%, effectively pricing your monthly payment into impossibility. It can drive you into bankruptcy, and certainly is not a motivator to pay debt. Inspiration is not born from impossible circumstance. It's happening to the poorest of this nation, and it's unfair! I don't care if it's in the contract or not, it's still criminal.

(We will cover the rest of Ben's discussion in a follow up piece, so stay tuned)

Please see our disclosure at the Wall Street Greek website.

Weekly Video Review: Biden Time

This week's videos cover plenty of Condi Rice signing Poland's death certificate, Russia's renewal of cold war antics, Fannie Mae (NYSE: FNM), Freddie Mac (NYSE: FRE) and Lehman Brothers (NYSE: LEH) shareholder panic (well-founded mind you), Obama's selection of Joe Biden to be his VP, and more than enough of the Jackson Hole Economic Symposium. This week, we supplanted the usual comedy of Craig Ferguson with some real funny Will Ferrell. If you cannot see the video where you are, please visit the Wall Street Greek website.

Article interests (AMEX: DIA, SPY, DOG, SDS, QLD), (NYSE: NYX, GM, LOW, HD, ANN, GPS, HPQ, JPM), (Nasdaq: QQQQ, YHOO, AAPL, MSFT, INTC)



As always, the opinions expressed within the videos may not agree with the view of "The Greek." Please see our disclosure at www.WallStreetGreek.blogspot.com

Is Joe Biden the Right Choice for Obama?

It's official! Delaware Senator Joe Biden is Obama's pick for Vice President. The media will be all over the pros and cons of this decision starting today, but we want to know what you think. Let's debate, Joe Biden for VP. Please comment below:




Topic of Debate Archive

Article interests (AMEX: DIA, SPY, SDS, DOG, QLD), Nasdaq: QQQQ, NYSE: NYX. See our disclosure at Wall Street Greek. We take no credit nor bear responsibility for your comments!

Jobless Claims Trending Higher

By The Greek:

On the surface, today's Weekly Initial Jobless Claims Report looks favorable, but trouble continues to brew.

Article interests: (AMEX: DIA, SPY, QLD, SDS, DOG), (NYSE: RHI, MAN, KFY, NYX), (Nasdaq: KELYA, KELYB, QQQQ)

This week's reporting of the Weekly Initial Jobless Claims data showed a week-to-week improvement, as claims numbered 432,000. The measure offered a favorable change of 13,000 from the prior week's reporting of 445K (revised). Bloomberg's consensus was looking for a reading of 448K, so on the surface, things look good.

However, the four-week moving average, which offers a clearer look at true trend, showed an increase of 7,250 benefits filers, to 445,750. The increase here offers reason to expect the August unemployment rate to rise further.

Some economists are discussing noise in the first time benefits filers data, since the government has extended benefits and it's unclear whether some beneficiaries are being counted as first time filers or not. As we look at the unemployment rate, this noise will of course not serve to overstate unemployment. Whether you are counting individuals as ongoing unemployed or newly unemployed is still going to put them into the unemployment box come tally time.

Insured unemployment, which we remind you counts individuals in the program for as long as they are either unemployed or until they have exhausted their benefits, stayed at 2.5% in the week ended August 9, as compared to the prior week. Keep in mind that a favorable catalyst to this measure occurs from a clearly unfavorable result, when the unemployed exhaust benefits, but still remain jobless.

Highest State Insured Unemployment Rates:

1. Puerto Rico - 5.8%
2. Michigan - 3.7%
3. New Jersey - 3.4%
4. Pennsylvania - 3.4%
5. Massachusetts - 3.3%
   

Largest State Increases in Initial Claims:

1. Georgia: +3,522
2. New York: +2,709
3. Puerto Rico: +2,274
4. Kentucky: +1,779
5. South Carolina: +1,571
   

Why Unemployment Should Deteriorate

State budgets are taking serious hits from lower real estate tax income on reduced appraisal values and sales data, and from lower income taxes and expectations on both the commercial and individual levels. Many investment banks, including Merrill Lynch (NYSE: MER), Lehman Brothers (NYSE: LEH) and others are already seeking withholdings back from New York. In order to balance budgets, states will have to take a close look at spending across the board. This should lead to inevitable reductions in municipal labor levels.

Stimulus funds have been used up or are now being deployed to stock children for their return to school. Despite the recent pullback in energy prices, including gasoline, consumers continue to look strapped for cash and sentiment remains dire.

The global economy is slowing, and this combined with nascent dollar strength, should begin to corrode one of our pillars of stability, export sales. As exports begin to see impact, further manufacturing and other employment erosion should occur.

The next reporting of unemployment will be on Friday, September 5th. The jobless rate stood at 5.7% for the month of July, when last measured on August 1st.

You can see our disclosure at the Wall Street Greek website, at www.WallStreetGreek.blogspot.com.

Misconception Confuses Georgia/Russia Conflict

By "The Greek"

A broad misconception born of Russian propaganda and media rush to judgment has confused the broader populous' understanding of the events in the Causasus.

Article interests (AMEX: DIA, SPY, DOG, SDS, QLD), (Nasdaq: TMRIX, LETRX, JRUCX, JRUSX, JRURX, TMRFX, QQQQ), (NYSE: CEE, TRF, NYX), PCX: RSX.

The vast majority of media have reported, as the broader public is absorbing, that Georgia precipitated the past week's events by invading Southern Ossetia, a Georgian territory. We believe this to be a gross flaw that most arguments against Georgia are based upon. While Georgia did eventually invade Ossetia, the most important point Americans and perhaps the world audience is missing, is that Russian paramilitary and Ossetian separatists reportedly crossed into Georgian territory first that evening, drawing the fire of Georgian troops. (When I say Georgian territory, I mean Georgia, not the Ossetian region in question.)

A Long Standing Mosquito

As is often the case, the broader populous wakes up to events occurring globally only after it erupts into gunfire. Unfortunately, this leads too many to base arguments on the gunfire itself, and to leave out the events that led up to that explosion. We've already given some background here on Russian barbarism in Georgia, and illegal events that have turned the vast majority of Abkhazia's population into refugees. Please see our articles, "Bush Stands for Georgia" and "Georgia Russia War Overshadows Olympics."

For years now, Russian trained, inspired and fueled separatists in Ossetia, Abkhazia and Ajaria have been a biting mosquito to the foot of Georgia's ruling party. Addressing this issue, President Saakashvili cleaned up the seaside region of Ajaria first, and vowed to do the same for the Russia-bordering regions of Abkhazia and South Ossetia.

With half of the Ossetian ethnic region located within Russia (Northern Ossetia), this offered the Kremlin a reason and way to punish Georgia for its successful attainment of independence and new friendships with the west. Besides this, we've noted that the closer the state is to Russia proper the more difficult is the effort to break away from the Reds. Chechnya is perhaps the best example of a struggling people that have the constant threat of Russian bullying to deal with.

Georgia United

Historically, Ossetia has long been one of the many unique micro-regions of Georgia. Georgia is very proud of its cultural diversity (a historical unification of kingdoms gave birth to greater Georgia), and at the same time, Georgians hold a strong sense of national pride that unites them. Please refer to Wikipedia here for more on Georgia's history. Based on the above assertions, we are certain that without Russian guidance and assistance, Abkhazian ethnic cleansing and Ossetian and Abkhazian secession would not have been conceived or proven successful.

In the meantime, while Georgia's President Saakashvili has sought to complete his restoration of the Georgian nation, Russia has stood in his way. There's not much sense in it all either, outside of Russian interests in the resort town of Sokhumi (in Abkhazia), or perhaps something more. We know from discussions with a prominent Georgian fund manager, that Georgia is mineral rich, and we wonder if Russia's true interest in these otherwise nonsensical efforts has something to do with geology.

Trouble Brewed

This war did not start in August of 2008, but in 1995, when Russia began supporting secession of Georgian regions (or perhaps 1991, when Georgia first broke free). Over the past few months, otherwise random gremlin-like efforts against Georgia emanating from Ossetia and Abkhazia (read Russia) have been overlooked by the world. Meanwhile, Saakashvili has been warning his peers in Europe and the US of escalation, and of Russian massing of troops, and military staging that had been ongoing on its northern border.

Enough Became Enough

At one point last week, we believe enough became enough for Georgian leadership and its troops monitoring the border with Ossetia. Receiving sniper fire got tiresome, and when, in the middle of the night, Russian paramilitary and Ossetian recruits crossed the border into Georgia proper, Mr. Saakashvili stated, "At that point, I had to act." Georgian troops fired upon those territorial trespassers and I believe fell into a Russian trap. Ossetians returned fire, drawing even greater fire from Georgian military. Then, perhaps overcome by bravado often born in battle, Georgia then made a decision to take the Ossetian capital of Tskhinvali, and they did occupy it for a short while.

However, as it played out, Georgia in so doing, offered Russia an open door and a reason to intervene. Russia, under the premise of "protecting its citizens" - these being Georgians who had been offered Russian passports and mafia like "protection" and passes to conduct black market trade and drive some sort of income generation in this poor corner of the world - rolled tanks and troops into Southern Ossetia (the portion lying within Georgia). The rest, as they say, is history. But this is the take on the events I believe the world's broader populace is missing.

It Makes Sense

In the hours that followed the initial events, Saakashvili came on the air explaining to the world that a Georgian invasion of Ossetia made no sense and that it was a flawed media interpretation. He stated that his nation was some 30 times smaller in population and even more minute in geographic size, not to mention military might, in comparison to its Russian aggressor. He noted his understanding of this situation, and the naivete' it would take to enter into military conflict with his clearly well-prepared Russian counterpart. But, the world mostly missed this message. We even sought to relocate the interview of Saakashvili (previously posted on our site), within which he makes these statements, and it is mysteriously no longer available.

Once more, if Georgia intended to force Ossetia into submission, it would likely have waited a few more years so that its efforts to enter the European Union and NATO were seen through to fruition. Then, it would have gained more useful western support to face potential Russian aggression. Rather, conflict at this premature hour served Russia well, and allowed it to create premise to station forces in the breakaway regions and to state openly its view that Georgian unity was now unlikely. Russia, therefore, clearly orchestrated this opera to see its interests through before it would no longer have that opportunity. Unfortunately for Georgia, this looks to have achieved Russian goals.

We hope this unveiling has helped to convey the truth.

India Q2 Review - Reason for Rise

Guneet Singh Sahni - India Analyst

It's no secret any longer... The Indian market has been outperforming its global peers. Our second quarter review shows you why.

(Article interests (AMEX: DIA, SPY, DOG, SDS, QLD, PUA, NWD, CZJ), (Nasdaq: QQQQ, ASIA, PRASX, MEAFX, EBASX, EVASX, MACSX, MATFX).)

India's BSE Sensex outperformed its major Asian and global peers by gaining more than 10% for the month of June, thereby closing out the second quarter strongly. Robust revenue growth in the April-June quarter earnings reports reduced the fear of a domestic slowdown. The Indian market ended the month of June with its fourth consecutive weekly gain on back of IAEA approval for the India-US nuclear deal, not to mention range bound oil prices and above expected domestic earnings. The markets even shrugged off greater than expected interest rate hikes and an inflation figure that is now within kissing distance of 12%.

India's Central Bank increased the repo rate (the rate at which RBI infuses liquidity) by 50 basis, points to 9%, and raised the CRR (funds which banks have to keep with the RBI) by 25 basis points, to 9%. As a result, foreign institutional investors were net sellers on the month.

The National Council of Applied Economic Research, India (NCAER), downgraded its GDP growth projection to 7.8% from its earlier estimate of 9% for FY 2008-09, and in the process, said the global slowdown and rise in inflation will have an adverse impact on the growth of the Indian economy. On the trade end, India's deficit expanded to an estimated $30.4 billion for the June quarter, against a deficit of $21.5 billion in the previous year.

Major Development

The Central Board of Employees Provident Fund has brought in 3 more private sector financial companies, including ICICI Prudential (unlisted subsidiary of ICICI Bank Limited NYSE: IBN), HSBC (subsidiary of HSBC Holdings NYSE: HBC) and Reliance Capital (BOM: 500111), in addition to public sector SBI (BOM: 500112), to manage the Provident Fund Corpus of around $60 billion.

The nuclear energy sector is going to be the next big thing in India, after getting the go ahead from the Indian Government and the IAEA. This month saw both domestic and international nuclear power companies trying to consolidate their presence in the sector, as market share slices are too attractive to pass up.

Top Gainers for July

The top 5 gainers in the Sensex for the month of July included DLF Ltd. (BOM: 532868) - up by 38.2%, State Bank of India (BOM: 500112) +38.1%, Reliance Infrastructure Ltd. (BOM: 500390) +37.5%, Reliance Communications Limited (BOM: 532712) +26.3% and ONGC (BOM: 500312) Ltd. +26.0%.

Third Rate Hike in 2 Months to Curb Inflation

The Reserve Bank of India (RBI) hiked the Repo rate by 50 bps to 9% and the CRR by 25 bps to 9%. The CRR hike will be effective from the fortnight beginning August 30, 2008, and will absorb about $2.1 billion from the system. Consequently, markets reacted to the move in negative fashion, but thereafter, took just one day to recover from the jolt. The RBI Governor has finally resorted to control inflation by tightening money supply. He hopes to bring down inflation to 7% by 2009 as lower inflation may prove key for next year's general elections. We believe that the RBI is worried about the risk of second round effects from relatively high global commodity prices, and thus inflation expectations leading to strict monetary tightening.

Inflation at Kissing Distance of 12%

The Wholesale Price Index (WPI) hit a new high of 11.98% for the week ended July 19, 2008, (against 11.89% the previous week and 4.65% a year ago) from a low of 3.1% during the week ended November 24, 2007. The prices of primary articles rose by 10.2% Y/Y; fuel items increased by 16.9%, and manufactured products grew by 10.8%.

Inflation has remained significantly higher than the RBI's comfort zone of 5% since mid-February 2008. We believe that inflation will continue to remain in double-digits till the end of 2008, as per RBI estimates.

Nuclear Deal to Spearhead Growth

The IAEA unanimously cleared the accord for the US-India nuclear deal, which helped Indian equities end higher. Mohamed ElBaradei, the UN nuclear watchdog chief, said that a basic inspection plan for India met safeguard standards and that talks had begun on a system of extended checks. Hence there was increasing share demand in capital goods and the power space.

We discussed which companies should benefit most from this deal on July 29th, in our article "India Equity Market Briefing." The agreement will allow India to have civilian nuclear energy as an option, plus pave the way for the transfer of a lot of hitherto denied technologies.

Flat Derivatives Expiry

The expiration date for derivatives in the Indian market falls on the last Thursday of every month. Expiry of the July contracts in the derivative segment passed without undue volatility. As per Economic Times data, Nifty rollover was at 65.05% in July, one of the lowest points in recent times and matched against the past six month average of 70.13%. Such low rollovers offer a positive sign for bulls. This is because, for a series that had begun at a discount of over 70 points, low rollovers simply mean that the short positions that existed in the system are now out of it. The markets witnessed low rollovers even for single stock futures at 79.19%, against a six-month average of 82.05%.

Burgeoning Trade Deficit on Account of Oil Prices

The trade deficit for the month of June increased 29.6% Y/Y, to $9.8 billion, primarily owing to month's surge in oil imports. Imports for the month of June increased from $19.4 billion last year, to $24.5 billion in June. The growth in oil imports was the main reason for a surge in overall imports, a key reason was the high international crude prices that pervaded through the period. Non-oil imports grew by a subdued 14%. At $15.4 billion, a key driver was the slowdown in domestic expansion plans amid rising interest rates and commodity prices. Exports for the month of June surged 24% Y/Y, to $14.6 billion, on the back of the depreciation of the rupee, which depreciated by 1.7% against the US dollar.

The trade deficit for the April-June period surged to $30.4 billion, against $21.5 billion previously. Exports for the April-June period increased 22% Y/Y, to $42.8 billion. Total imports grew 30% Y/Y, to $73.2 billion. India is targeting exports of $200 billion in 2008-09, up 29% from $155.5 billion last year.

Outlook

We believe that Indian markets will need a slew of positive news to sustain this bear market rally. The August reporting of Industrial Production Data and Q1 FY 09 GDP figures should drive the direction of Indian markets. India's June Industrial Production numbers compared against a disappointing performance in May. International monetary policy meetings, including the Bank of Japan's congregation that concluded today, should also prove important. Q1 FY09 GDP data is due on the 29th of August, and we'll be watching attentively.

Please see our full disclosure at the site (Wall Street Greek) and Mr. Sahni's disclosure at his bio page on the site.

Week Ahead: Greek Philosophy

A Greek philosopher once said, rising commodity and component costs would drive producer prices higher, which would finally embed into consumer prices. But now that the commodity bubble is busting, the oracle's forecast may surprise you.

Last week's reporting of the Consumer Price Index for the month of July consummated the prophecy of "The Greek." Before the eyes of the world's economists, long-rising commodity and component costs found their way through producer prices, and are now eating into consumer wallets, no matter what they're buying. We've written so many articles on the topic, we weren't sure which best to link to, so we hit up a few here: "Inflation on My Mind;" "Secular Nature of Rising Food and Energy Prices" (we improved the title here to best fit the content); "Economic Fishtail."

Quoting The Greek, "Here's the big problem. Even though producer prices take some time to work there way through to the consumer level, and in the past have often never found their way there at all, we see too much anecdotal evidence to the contrary this time around. From Kimberly-Clark (NYSE: KMB) to Dow Chemical (NYSE: DOW), from United Airlines (Nasdaq: UAUA) to J.M. Smucker (NYSE: SJM), companies far and wide are raising prices. So, expect future CPI price measurement to show inflation is out of Bernanke's control."

Global Market Decoupling Myth Busted

Now that it's becoming clear that emerging markets remain dependent upon the U.S., Europe and Japan, most economists are calling for inflation to obey Ben Bernanke and fall in line. We agree that prices should see some favorable impact from lessening demand, but we note that secular drivers behind food and energy rise and the specific fundamentals within those markets, versus drivers behind demand for metals for instance, should delay that result long enough for inflation to become quite distressing to the ECB and Fed. This might prove true for food prices more so than energy, however, because demand for petrol byproducts like chemical resins used to make plastics would decrease, as would fuel to power plant operation.

"So inflation, therefore, is a bit sticky these days."

Also, we note that companies typically cut costs with more reluctance than when they raise them, that is, once they raise them in competitive environments. We've passed the point where competitive marketplaces had decided it was necessary to raise prices. At this point, we expect they will be less swift to lower prices without time proven confirmation of component cost decline. So inflation, therefore, is a bit sticky these days. Our current Fed chief could go down in history as brilliant nonetheless, if inflation obeys his command. He would have been proven the successful navigator out of perhaps the most troubled waters seen since The Great Depression. Even so, factors remain in place that could undermine the whole effort, and our own Steven Ferguson is currently working on an article discussing one such significant factor.

The Week Ahead

As we enter the height of vacation season in the United States, trading volume drops, and the economic schedule accommodates. There is a somewhat light schedule in store for the week ahead, with the important PPI report due, but its impact has been softened by the CPI data already noted last week. We're also looking forward to the important Leading Indicators data later in the week.

Monday

Not too far removed from its second quarter GDP report, which showed the nation slipped into economic contraction after a strong first quarter, the Bank of Japan kicks off its two-day monetary policy meeting.

At 1:00 PM Eastern Time, the Housing Market Index will be reported by Wells Fargo and the National Association of Home Builders. This take on builders' sentiment bottomed for the year at a measure of 16 last month. Housing data has been more positive lately, but not from the home builders, so we should measure somewhere close to last month's figure (perhaps slightly improved).

The day's earnings schedule headlines home improvement retailer Lowe's (NYSE: LOW), BHP Billiton (NYSE: BHP) and Trina Solar (NYSE: TSL).

Earnings Announcements for Monday, August 18 Company Symbol Time Ansell Ltd ANN.AX Time Not Supplied Atna Resources Ltd. ATN.TO Time Not Supplied Baldwin Technology BLD Before Market Open BHP Billiton PLC BHP Time Not Supplied BLUESCOPE STEEL LTD BSL.AX Time Not Supplied BORAL LTD NEW BLD.AX 10:30 pm ET Brooke Capital Corporation BCP After Market Close BROOKE CORP BXXX After Market Close Cell Therapeutics CTIC Before Market Open CHANGJIANG & JINGGONG STEEL STRUCT 600496.SS Time Not Supplied CHINA MERCHANTS BANK CO LTD 600036.SS Time Not Supplied China Southern Airlines ZNH Time Not Supplied China TechFaith Wireless Com Tech CNTF After Market Close Crimson Exploration, Inc. CXPO.OB Time Not Supplied FNX Mining Company Inc. FNXMF.PK Time Not Supplied Hastings Entertainment HAST Before Market Open Hiscox PLC HSX.L 02:00 am ET HUMAN CARE H C AB HUMA.ST Time Not Supplied IINET LTD IIN.AX Time Not Supplied Innogenetics NV INNX.BR After Market Close INTERCELL AG INRLF.PK Time Not Supplied Irvine Sensors IRSN Time Not Supplied ISCO International, Inc. ISO Time Not Supplied K-FED BANCORP KFED Time Not Supplied KUALA LUMPUR KEPONG BERHAD KLKBF.PK Time Not Supplied LABS2 GROUP AB LABS.ST Time Not Supplied Lan & Spar Bank A/S LASP.CO Time Not Supplied LIHIR GOLD LIMITED LIHR 6:30 pm ET Liquidmetal Technologies LQMT.OB After Market Close Lowe's Companies LOW Before Market Open Mega Bloks Inc. M3H.BE Time Not Supplied Mega Brands Inc. MB.TO Time Not Supplied Merrimac Industries MRM Time Not Supplied Michael Page International plc MPI.L Before Market Open Perfect World PWRD Before Market Open Perrigo PRGO Time Not Supplied PGG WRIGHTSON LTD PGWFF.PK 7:30 pm ET PING AN INS GROUP CO CHINA LTD PIAIF.PK Time Not Supplied Schawk SGK After Market Close SCHOUW & CO SUWCF.PK Time Not Supplied SHANGHAI LUJIAZUI FINANCE LTD SLJIF.PK After Market Close Sherritt International Corporation S.TO Time Not Supplied SINO GOLD LIMITED SGX.AX Time Not Supplied TOM GROUP LIMITED 2383.HK Time Not Supplied Trina Solar Limited TSL Time Not Supplied WORLDWATER & SOLAR TECHS CORP WWAT.OB Before Market Open

Tuesday

Keeping with the housing theme, Housing Starts are set for release at 8:30 AM on Tuesday. Bloomberg's consensus of economists anticipates starts ran at an annual pace of 950,000 in July, down from 1.066 million in June. The low for the year was thus far achieved in March, at 947K, so you can see housing is not much improved though perhaps bottomed.

Last week's Consumer Price Index showed CPI rose 0.8%, and 0.3% before food and energy price increase; the 5.6% 12-month increase marked the greatest such rise in 17 years. This week, Producer Prices (PPI) are due, and Bloomberg's consensus forecasts a 0.5% headline price rise and 0.2% increase before food and energy price change. Because of the earlier CPI release, the impact of PPI, which takes measurement deeper in the vertical chain, should be somewhat muted.

The ICSC-UBS Weekly Same Store Sales Report should begin to lose the benefit of economic stimulus distribution. We've been looking for the year-to-year measure to soften, and have noted week-to-week softening already beginning. However, over the weeks ahead, as we now enter "back to school" season's midnight hour, week-to-week sales should show temporary growth, while year-to-year results should soften. Last week, same-store sales rose 2.6% year-over-year and fell 1.1% week-to-week.

At 10:00 AM, the State Street Investor Confidence Index is due for August. Though a little choppy, the index has defiantly trended upward through the year. State Street (NYSE: SST) measures confidence by looking at actual levels of risk in investment portfolios.

Two regional Fed presidents are scheduled to speak on Tuesday, including Dallas Fed Boss Richard Fisher on "monetary policy in a tech driven world" and Atlanta Fed President Dennis Lockhart on "American competitiveness." The Bank of Japan is due to issue its monetary policy decision, and in light of recent economic contraction a cut is more likely than anything else.

The day's earnings schedule is headlined by Target (NYSE: TGT), Home Depot (NYSE: HD), Saks (NYSE: SKS) and Hewlett-Packard (NYSE: HPQ).

Earnings Announcements for Tuesday, August 19 Company Symbol Time Accuray Incorporated ARAY After Market Close ALDATA SOLUTIONS OYJ ADTAF.PK 02:00 am ET ALE Property Group LEP.AX Time Not Supplied Analog Devices Inc. ADI After Market Close Asgaard Development A/S ASGGRO.CO Time Not Supplied Astro-Med, Inc. ALOT After Market Close Bavarian Nordic A/S BAVA.CO Time Not Supplied Brixton plc BXTN.L Before Market Open CAPRAL ALUMINIUM LIMITED CAA.AX Time Not Supplied CFS Retail Property Trust CFX.AX Time Not Supplied China Distance Education Holdings Limited DL Time Not Supplied CHINA SHIPPING HAISHENG CO. LTD. 600896.SS After Market Close CHINA STATE CONSTRUCTION INTL. HLDGS LTD 3311.HK Time Not Supplied CHONGQING SANXIA PAINTS CO. LTD. 000565.SZ After Market Close Coca-Cola Amatil Ltd. CCL.AX 8:00 pm ET COMMONWEALTH PROPERTY OFFIC FD CPA.AX Time Not Supplied Concurrent Computer Corporation CCUR Before Market Open DNO DET NORSKE OLJESELSKAP ASA DTNOF.PK Before Market Open GEO VISION INC GVSNF.PK Time Not Supplied Gold Reserve GRZ Time Not Supplied Hewlett-Packard HPQ After Market Close Home Depot Inc HD Time Not Supplied HUTCHISON TELECOMMUNICATIONS I HTX Time Not Supplied HUTCHISON TELECOMS (AUSTRALIA) LTD HTA.AX Time Not Supplied INDUSTRIAL BANK CO LTD INBLF.PK Time Not Supplied INFOMEDIA IFM.AX Time Not Supplied IRESS MARKET TECHNOLOGY LIMITED IRE.AX Time Not Supplied Jack Henry & Associates JKHY After Market Close JB HI FI LIMITED JBH.AX Time Not Supplied JIANGXI GANYUE EXPRESSWAY CO 600269.SS Time Not Supplied Key Tronic Corp. KTCC After Market Close KUNGSLEDEN KGSDF.PK After Market Close La-Z-Boy Inc. LZB After Market Close LARGAN PRECISION CO 3008.TW Time Not Supplied Mad Catz Interactive, Inc. MCZ Time Not Supplied Medtronic Inc. MDT Before Market Open Mesa Air Group MESA Before Market Open MIND CTI Ltd. MNDO After Market Close MODUL 1 DATA MOD1.ST Before Market Open MONADELPHOUS GROUP MND.AX Time Not Supplied Myriad Genetics MYGN Before Market Open NEWCREST MNG LTD NCM.AX Time Not Supplied Novatel Wireless NVTL After Market Close OIL SEARCH OISHF.PK Time Not Supplied ONESTEEL LTD OST.AX Time Not Supplied Open Text OTEX Time Not Supplied Raven Industries Incorporated RAVN Before Market Open ReneSola Ltd. SOL Time Not Supplied ROSETTA GENOMICS LTD ROSG Before Market Open Russ Berrie RUS Before Market Open Saks Incorporated SKS Before Market Open SBM Offshore N.V. SBFFF.PK 12:00 pm ET SHIN KONG FINANCIAL 2888.TW Time Not Supplied STEALTHGAS INC GASS Before Market Open TAMAYA RESOURCES LTD TMAYF.PK Time Not Supplied Target Corporation TGT Before Market Open The Singing Machine Co. SMD Time Not Supplied TIX CORP TIXC Before Market Open TOURISM HLDGS THL.NZ 5:00 pm ET UR ENERGY INC URE.TO Time Not Supplied Wienerberger AG WBRBF.PK Time Not Supplied XFMedia XFML Time Not Supplied

Wednesday

Considering recent Russian and Venezuelan government actions, the German vote on Wednesday, on a measure to block foreign takeovers of German companies, could have significant future repercussions. Also on the international scene, the Bank of England is due to release the minutes of is August meeting.

The Mortgage Bankers Association will report its weekly mortgage activity report, and the EIA, its weekly Petroleum Status Report. The EIA noted a 400 thousand barrel draw from crude inventory last week. The day's earnings schedule highlights BJ's Wholesale Club (NYSE: BJ), Limited Brands (NYSE: LTD), Salesforce.com (NYSE: CRM) and Eaton Vance (NYSE: EV).

Earnings Announcements for Wednesday, August 20 Company Symbol Time A/S Dampskibsselskabet Torm TRMD Time Not Supplied ACORN INTERNATIONAL INC ATV Time Not Supplied AFC Enterprises, Inc. AFCE After Market Close AGL ENERGY AGK.AX Time Not Supplied American Woodmark Corporation AMWD Time Not Supplied AUCKLAND INTERNATIONAL AIRPORT AIA.NZ 5:00 pm ET AUSENCO LIMITED AAX.AX Time Not Supplied Bally Technologies Inc. BYI Before Market Open BJ's Wholesale Club BJ Time Not Supplied Brambles Limited BXB.AX Time Not Supplied Candela Corp. CLZR After Market Close CENTENNIAL COAL CO CCOAF.PK Time Not Supplied CHINA RAILWAY ERJU CRWYF.PK After Market Close CHIPMOS TECH BERMUDA LTD IMOS After Market Close Citi Trends, Inc. CTRN After Market Close CONTEXTVISION AB COV.OL Time Not Supplied D/S NORDEN DNORD.CO Time Not Supplied E-House (China) Holdings Limited EJ Before Market Open Eaton Vance Corp. EV 09:00 am ET Eltek ASA ELT.OL Time Not Supplied FLEETWOOD CORPORATION LTD FWD.AX Time Not Supplied GC RIEBER SHIPPING ASA RISH.OL Time Not Supplied GOLDEN OCEAN GROUP LTD GDOCF.PK Before Market Open Gymboree GYMB Time Not Supplied Hot Topic HOTT Time Not Supplied ILUKA RESOURCES LIMITED ILU.AX 6:00 pm ET James Hardie Industries N.V. JHX.AX Time Not Supplied JDSU JDSU After Market Close Jeudan A/S JEUDF.PK Time Not Supplied KAGARA ZINC LIMITED KZL.AX Time Not Supplied KONINKLIJKE TEN CATE NV KNKCF.PK 02:00 am ET Limited Brands LTD After Market Close Longs Drug Stores LDG Time Not Supplied MACMAHON HOLDINGS LTD MAH.AX Time Not Supplied Macquarie Airports MAP.AX Time Not Supplied MACQUARIE INFRASTRUCTURE GROUP MIG.AX 7:00 pm ET Mecom Group plc MEC.L Before Market Open Mentor Graphics MENT Before Market Open MORTGAGE CHOICE MOC.AX Time Not Supplied PACIFIC BRANDS LTD PBG.AX Time Not Supplied Perpetual Limited PPT.AX Time Not Supplied Phillips-Van Heusen PVH After Market Close QSC AG QSC.F Time Not Supplied Regis Corporation RGS Before Market Open Retalix Ltd. RTLX Time Not Supplied Ross Stores, Inc. ROST Before Market Open SAG SOLARSTROM AG SAG.F Time Not Supplied Salesforce.com, Inc. CRM After Market Close Semtech SMTC After Market Close SEVAN MARINE AS SVMRF.PK 02:00 am ET SHANGHAI FORTE LAND CO LIMITED 2337.HK Time Not Supplied SINTERCAST AB SINT.ST Time Not Supplied SKILLED GROUP LIMITED SKE.AX Time Not Supplied SKY NETWORK TELEVISION LIMITED SKT.NZ Time Not Supplied SOLVANG ASA SOLV.OL Time Not Supplied SPARKASSEN IMMOBILIEN SRKNF.PK Time Not Supplied SUNLAND GROUP LIMITED SDG.AX Time Not Supplied Suntech Power Holdings Co., Ltd. STP Before Market Open Symmetricom SYMM Time Not Supplied Synopsys SNPS After Market Close TCL COMMUNICATION TECHNOLOGY HLG LT 2618.HK Time Not Supplied TCL MULTIMEDIA TECHNOLOGY HLDG 1070.HK Time Not Supplied Telekom Austria AG TKAGY.PK Time Not Supplied THE REJECT SHOP LIMITED TRS.AX Time Not Supplied Tower Semiconductor TSEM Before Market Open Trintech TTPA Before Market Open WATTYL LIMITED WYL.AX Time Not Supplied Xaar PLC XAR.L Before Market Open

Thursday

Thursday clearly keys the weekly schedule this time around. Two very important reports are due, including one regular and one monthly. Off the bat, the early morning buzz should be generated by the Weekly Initial Jobless Claims data due out at 8:30. Bloomberg's consensus is looking for 448K new claims, which would put it at just about the same level as last week's 450K. The four-week moving average has been on a disturbing uptrend indicative of economic trouble.

Leading Indicators, to be reported at 10:00 AM, is expected by economists to show a 0.2% decline in July, the first month of the third quarter. With concerns for economic contraction spreading among prognosticators, this report is important in setting expectations for Q3. The Philly Fed Survey is also due on Thursday, with the regional metric anticipated to show a decline of 15, versus July's 16.3 drop. So, you can expect market focus to turn toward economic sluggishness.

The EIA Natural Gas Report will compare against the prior week's increase in inventory of 50 Bcf. Barnes & Noble (NYSE: BKS), Aeropostale (NYSE: ARO), The Children's Place (Nasdaq: PLCE) and several other retailers, as well as HJ Heinz (NYSE: HNZ) and Burger King (NYSE: BKC) headline the earnings schedule for Thursday, with the remaining names listed below.

Earnings Announcements for Thursday, August 21 Company Symbol Time A COM AB ACOM.ST Before Market Open ADELAIDE BRIGHTON ABC.AX Time Not Supplied Aeropostale, Inc. ARO Time Not Supplied AIR INDS GROUP INC AIRI.OB Before Market Open Amlin plc AML.L Before Market Open ARQUES Industries AG AQU.F Time Not Supplied Avanex Corporation AVNXD After Market Close Barnes and Noble BKS Before Market Open Bebe Stores BEBE After Market Close BELSHIPS CO LTD BESHF.PK Time Not Supplied Biopure Corporation BPUR Time Not Supplied Blue Coat Systems BCSI After Market Close Bon-Ton Stores BONT Time Not Supplied Burger King BKC Before Market Open bwin Int. Entert. AG BWIN.VI 02:00 am ET CALLWAVE INC CALL After Market Close CALTEX AUSTRALIA LTD CTX.AX 8:00 pm ET Casual Male Retail Group, Inc. CMRG Before Market Open CHALLENGER INFRASTRUCTURE FUND CHARF.PK Time Not Supplied CHONGQING ROAD & BRIDGE 600106.SS After Market Close Ciba Specialty Chemicals Holding CSBHY.PK Time Not Supplied CINEWORLD GROUP CINE.L Before Market Open CLOUGH LTD CLO.AX Time Not Supplied CODAN LTD CDA.AX Time Not Supplied Cost Plus CPWM Time Not Supplied Cyberonics CYBX Before Market Open Danionics A/S DANIO.CO Time Not Supplied Dick's Sporting Goods, Inc. DKS Time Not Supplied DIGITAL CHINA HLDGS DCHIF.PK Time Not Supplied Ditech Networks DITC Time Not Supplied DOWNER EDI LTD DOW.AX Time Not Supplied DRDGOLD Limited DROOY Before Market Open Edap TMS EDAP Before Market Open ELECTROMAGNETIC GEOSERVICES AS ELRMF.PK Time Not Supplied ERIKS GROUP NV ERIKG.AS Time Not Supplied FAIRFAX MEDIA LIMITED FXJ.AX Time Not Supplied FANTASTIC HOLDINGS LTD FAN.AX Time Not Supplied Farstad Shipping ASA FAR.OL Time Not Supplied Foot Locker, Inc. FL After Market Close Frontline Ltd. FRO Time Not Supplied FUNTASTIC LTD FUN.AX Time Not Supplied Gamestop Corp. GME Before Market Open Gap Inc. GPS After Market Close GEMALTO N.V. GTO.PA Time Not Supplied GLOBAL GEO SERVICES ASA GGS.OL Time Not Supplied H.J. Heinz Company HNZ Before Market Open HANNSTAR BOARD CORP 5469.TW Time Not Supplied HEALTHSCOPE LIMITED HSP.AX Time Not Supplied Hibbett Sports Inc. HIBB After Market Close Hochschild Mining plc HOC.L Time Not Supplied Holcim Ltd. HOLN.VX Time Not Supplied Hormel Foods Corporation HRL Time Not Supplied INMETA ASA INM.OL Time Not Supplied Intuit INTU After Market Close INVOCARE LTD IVC.AX Time Not Supplied Jamba Juice JMBA After Market Close JM AB JM.ST Time Not Supplied John Menzies plc MNZS.L Before Market Open Kensey Nash Corporation KNSY Before Market Open Lancaster Colony Corporation LANC Before Market Open Lend Lease Corporation LLC.AX Time Not Supplied LSI Industries Inc. LYTS Before Market Open Luzerner Kantonalbank LZKBF.PK Time Not Supplied Maconomy A/S MACO.CO Time Not Supplied MACQUARIE OFFICE TRUST MOF.AX Time Not Supplied MAXITRANS INDUSTRIES MXI.AX Time Not Supplied Medicult MEC.OL Time Not Supplied Met-Pro MPR Time Not Supplied Mols-Linien A/S MOLS.CO Time Not Supplied Noah Education Holding Limited NED After Market Close Nordicom A/S NRDC.CO Time Not Supplied Nordson NDSN After Market Close NOVESTRA NOVE.ST Time Not Supplied OLAV THON EIENDOMSSELSKAP OLT.OL Time Not Supplied OPCON AB OPCO.ST Time Not Supplied ORBITAL CORPORATION LTD OBTLY.OB Time Not Supplied ORIOLA KD CORPORATION ORIJF.PK 01:30 am ET Oxiana Limited OZL.AX Time Not Supplied Pacific Sunwear of California, Inc. PSUN After Market Close PAPERLINX LTD PPX.AX Time Not Supplied Patterson Dental PDCO Time Not Supplied Peoples Educational Holdings, Inc. PEDH After Market Close Persimmon plc PSN.L Before Market Open QAD QADI After Market Close QANTAS AIRWAYS LIMITED QAN.AX Time Not Supplied QBE INSURANCE GROUP LIMITED QBE.AX Time Not Supplied Royal Boskalis Westminster nv KKWFF.PK Before Market Open SANTOS LIMITED STOSY Time Not Supplied ScanSource Inc. SCSC After Market Close Schoeller Bleckmann Oilfield Equipment AG SBO.VI Time Not Supplied School Specialty SCHS Before Market Open SCORPION OFFSHORE LTD SCORE.OL After Market Close SHAMIR OPTICAL INDUSTRY LTD SHMR Time Not Supplied SHIP FINANCE INTERNATIONAL LTD SFL Before Market Open Shoe Carnival SCVL Before Market Open ShoreTel, Inc. SHOR After Market Close SIG plc SHI.L Before Market Open SimCorp A/S SIM.CO Time Not Supplied SONIC HEALTHCARE LIMITED SHL.AX Time Not Supplied SOUTH PORT NEW ZEALAND SPN.NZ Time Not Supplied Stage Stores SSI Time Not Supplied Stein Mart, Inc. SMRT Before Market Open Tag Tegernsee AG TEG.F Time Not Supplied Tech Data Corporation TECD Before Market Open THAKRAL HOLDINGS GROUP THG.AX Time Not Supplied The Buckle BKE Time Not Supplied The Cato Corporation CTR Time Not Supplied The Children's Place Retail Stores, Inc. PLCE Before Market Open The Wet Seal, Inc. WTSLA After Market Close Topsil Semiconductor Materials A/S TPSL.CO Time Not Supplied Toro TTC Before Market Open Umicore UMI.BR Time Not Supplied Verigy, Ltd. VRGY After Market Close WESFARMERS LIMITED WES.AX Time Not Supplied Zumiez, Inc. ZUMZ After Market Close

Friday

With no economic reports due on this late summer Friday, expect light volume trading and an early end to the day for most Wall Streeters. However, at a big event that always grabs media attention, Federal Reserve Chief Bernanke is scheduled to discuss "financial stability" in Jackson Hole. Look for Perry Ellis (Nasdaq: PERY) and AnnTaylor Stores (NYSE: ANN) to report on Friday.

Earnings Announcements for Friday, August 22 Company Symbol Time Advanced Photonics Tech AG AP8.F Time Not Supplied AF GRUPPEN ASA AFG.OL Time Not Supplied AnnTaylor Stores ANN Before Market Open ARENDALS FOSSEKAMPANI AFK.OL Time Not Supplied Arriva plc ARI.L Before Market Open AUSTRALIAN WORLDWIDE EXPL LTD AWE.AX Time Not Supplied BANK LINTH VORM BK LINTHGEBIET BLVBF.PK Time Not Supplied BIOPHAUSIA AB BIOP.ST Time Not Supplied Challenger Kenedix Japan Trust CKT.AX Time Not Supplied CHINA INTL MARINE CONTAINERS(GROUP) 200039.SZ After Market Close CHINA SUNERGY CO LTD CSUN Time Not Supplied CHINASCHOLARS GROUP CO. LTD. 000547.SZ After Market Close DIGITAL VISION AB DV.ST Time Not Supplied DPA FLEX GROUP NV DPAFX.AS Time Not Supplied ERG LTD ERG.AX Time Not Supplied Goodman International Limited (Goodman Group) GMG.AX Time Not Supplied Harris Interactive HPOL Before Market Open HASTINGS DIVERSIFIED UTIL FND HDF.AX Time Not Supplied INSURANCE AUSTRALIA GROUP IAG.AX Time Not Supplied Intelecom Group ASA ITC.OL 02:00 am ET Perry Ellis International PERY Before Market Open Rohwedder AG RWD.F Time Not Supplied SALMAT LIMITED SLM.AX Time Not Supplied SHANGHAI JIN JIANG INTL IND INVEST 900914.SS After Market Close SHANGHAI ORIENTAL PEARL CO LTD SIRPF.PK After Market Close Spectris plc SXS.L Before Market Open THULE DRILLING THDRF.PK Time Not Supplied VELAN INC VLN.TO After Market Close WPP Group PLC WPPGY Time Not Supplied

Article interests (AMEX: DIA, SPY, DOG, SDS, QLD, Nasdaq: QQQQ, NYSE: NYX). Wall Street Greek in no way endorses the validity of the data offered, and we will not be liable for any actions taken in reliance thereon. Please see our full disclosure at the Wall Street Greek website.

Weekly Videos August 11 - 17

Wow, we almost hit 100 videos this time around. Within the player below, you'll find business, political, geopolitical and other important news, including this time a little bit about the Olympics and the significance of August 15th for Christians. If you're interested, the descriptive video on this topic can be found in the 30s of the near 100 total videos. Of course, we covered the war in Georgia in depth. If you cannot see the video player below this text, please click through this link to visit the Wall Street Greek website.




As always, the opinions expressed within the videos may not agree with the view of Wall Street Greek. Article interests (AMEX: DIA, SPY, SDS, DOG, QLD), (Nasdaq: QQQQ, YHOO, SIRI, XMSR, COST), (NYSE: TOL, MER, UBS, WMT, TGT, M, JCP, JWN). Please see our full disclosure at the Wall Street Greek site.

Beyond 2010 - Strong Demographics for Housing

By Michael Douville - Real Estate Analyst

As an asset class, real estate is a very long term investment. When I counsel investors, the minimum holding time frame is a reasonable 5 to 10 years.

(Article interests (NYSE: TOL, HOV, BZH, BAC, FRE, FNM, LEN, PHM, NVR, GFA, MDC, CTX, KBH, RYL, MTH, XIN, BHS, SPF, MHO, OHB, WCI, NYX), (AMEX: DIA, SPY, SDS, DOG, QLD, VNQ), (Nasdaq: QQQQ, VGSIX, AVTR).)

As Warren Buffet once said, an investor should "hold your investment forever." Indeed, unless there is a compelling reason to sell, my investment philosophy is just that: buy quality properties in high-growth areas; use leverage very judiciously; employ a principal reduction strategy to produce a free and clear investment as quickly as possible; and enjoy a lifetime of benefits that can be part of a family legacy.

Once the long-term nature of a real estate investment is understood, the location of investment properties becomes extremely important. Real estate markets are local in nature. Within the United States, there are many regional markets, each with their own unique growth characteristics. Some markets have been losing population and jobs for years; consequently, these will take much longer to recover. However, due to the decade's long demographic shift from North to South and East to West, some markets should begin showing signs of recovery.

Population growth in areas like San Bernardo County, California; Harris County, Texas; Clarke County, Nevada; and Maricopa County, Arizona will absorb the excess housing sooner than areas in the North and East. Other areas experiencing the population shift include Wayne County - home to Detroit, Michigan - that by some estimates will lose as much as 705,000 residents by the year 2035, and Allegheny County - home to Pittsburgh – that has estimates as high as 4.5% loss of residents.

Along with the demographic shift, the US population is also increasing at 1% per year, or about 3 million annually, which exceeds the entire population of Phoenix or San Diego. That alone would absorb the glut of 1-1.5 million foreclosures within 12-18 months. Maricopa County is now home to some of the fastest growing cities in the US: Phoenix, Scottsdale, Peoria and Gilbert, which are expected to grow by 184,000 new residents in just 2008. From 2000-2007, Maricopa County experienced a population growth of nearly 880,000 residents, and this surge will continue to resist diminution. The population of the US is projected to increase by 50%, from 303,000,000 today to over 450,000,000 by 2050. This figure points to a very powerful trend and an incentive for the accumulation of properties. Owning a home will thus be a huge accomplishment in the not-too-distant future.

The US Real Estate Market is laboriously walking along the bottom. Unfortunately for recent home purchasers, the bottom is now being defined by aggressive asset managers handling foreclosure portfolios and charged with the orderly liquidation of those properties. These "lender-owned" or REO properties represent a tremendous buying opportunity. Conversely, they represent severe competition when selling. Those buyers who were unlucky to have bought in the 2004-2007 time-frame probably cannot sell without a loss. These home-buyers, in many instances, are unable to sell without help from the lender in the form of a "short sale," lender participation in the new government-sponsored re-finance programs, or possibly an outright foreclosure. These recent home purchasers must reduce their asking price to compete at the bottom or remove their properties from the market and wait for the recovery. Only those needing to sell should be affected, as the average homeowner puts down roots and will live in a home for at least 5 years.

Real Estate investments are a get-rich slow strategy. Using this process, one finds that the creation of wealth is not an event, but a life-long journey. Further, the accumulation of Real Estate Investments is a time-proven strategy and time becomes the real estate investor's friend. There are many potentially lucrative markets within the US that have a huge potential for growth, capital gains and rent increases. The US real estate market will likely bump along the bottom for the next 12-18 months, with signs of normalization returning by 2010. In the meantime, frantic selling by asset managers should produce wonderful opportunities for patient investors.

Full Disclosure: Michael has agreed to Wall Street Greek policy to refrain from authoring articles about securities he personally owns or holds beneficial interest in. In the event of a special case, Michael will make full disclosure of ownership or beneficial interest. The work of contributors to Wall Street Greek is their own, and may not necessarily agree with the opinion of the site or its founder, and does not constitute financial advice. Please see our full disclosure at the site (Wall Street Greek).

5 Reasons Why SPY is the ETF to Buy (AMEX: SPY)

By Ryan Delany - Personal Finance & Investing for Military & Marine Corps:

Have Your Cake and Eat it Too

You can have your cake and eat it too with Standard and Poor's Depositary Receipts, also known as SPDRs (AMEX: SPY). Recently I wrote a post about one of the key advantages a small investor has - the ability to focus his investment eggs in a few well-chosen baskets ("Don’t Diversify!"). SPDRs, an exchange-traded fund that mimics the S&P 500 - which is diversified in 500 stocks - is one of those good baskets.

SPDRs (AMEX: SPY) earns you similar advantages to mutual funds without some of the negative consequences. The S&P 500 is made up of 500 growth and blue chip stocks that represent the various industries of the American stock market. These committee-selected stocks represent a portfolio of shares in powerhouses of American industry. In mutual funds, the analogous committees are groups of fund managers who are paid hefty fees. SPDRs ETF, by contrast, has a management-expense ratio of less than 0.1% a year. If you want diversification without the downsides of mutual funds or having to spread yourself thin by studying many companies, pick up some SPDRs.

(Article interests: AMEX:DIA,SPY,QLD,DOG,SDS, Nasdaq: QQQQ, NYSE: NYX)

Here are 5 reasons to buy SPDRs:

1. Buying the best at a bargain

It's official: We are in a bear market, and history indicates that if you are smart and long-term oriented, you are looking to buy. Warren Buffet announced his affection for bear markets to shareholders in May:

"If a stock [I own] goes down 50%, I'd look forward to it. In fact, I would offer you a significant sum of money if you could give me the opportunity for all of my stocks to go down 50% over the next month."

Warren Buffet buys great stocks, and if it's a bear market, he buys them at a discount. I believe the S&P 500 is made up of great stocks of American industry. Could they go down more? Yes. Are the great stocks of America a good investment? You bet. All patriotism aside, the business of America is business. You better believe that whatever ups and downs will come, the best of American stocks should make money for their shareholders over the long term.

2. A weak dollar = more exports

Although the dollar has recently made big gains against the euro, Morgan Stanley still predicts the dollar to come near a record low by October. This is good for American exporters because their products will be cheap in foreign markets. We can expect this cheap dollar to boost those sales.

3. Investors often profit from going against the flow, and the flow of money is fleeing the market

A majority of Americans think the economy is in bad shape, and fear is driving investors out of stocks and into cash and bonds. When the crowd is going one way, the smart investor often looks the other way.

4. Low long-term risk

In the short-term - (I'm talking less than 5 years) - stocks can be very risky, but over the long-term, the stock market has proven not very risky at all. Over the last ten years, the S&P 500 has not done very well though - less than 3% gain. Historically speaking though, long periods of losing money are followed by long periods of gaining money. Are past returns an indication of future returns? No, but they can help us make an educated guess.

What do you think is more likely: The US stock market will have downswings and upswings, or the stock market will have a downswing and stay down? Either is possible, but I will invest my money based on the assumption that American companies will continue to be an economic powerhouse.

5. Stocks typically rise after elections

Regardless of who wins the election in November, history indicates that chances are good that the stock market will rise. This is an instance in which being diversified in the whole market (with SPDRs) will help you. We can't guarantee which stocks will rise after the election, but historically the stock market as a whole gains after elections. Buying SPDRs should thus ensure that you profit from this gain.

Disclaimer: This article expresses the opinion of Ryan Delany, and does not necessarily reflect the opinions of the Wall Street Greek website or its founder. Every investor should exercise his or her own due diligence and research when investing in the stock market, and this report does not constitute financial advice. Ryan currently owns no SPDRs but he is seriously considering purchasing some in the future. Please see our full disclosure at www.WallStreetGreek.blogspot.com.

Weekly Initial Jobless Claims... Panicky

Weekly Initial Jobless Claims and the change in the number of insured unemployed portend to upcoming panic at corporate HQ.

(Article interests (NYSE: MAN, NYSE: RHI, NYSE: KFY, NYSE: MPS, NYSE: NCI), (Nasdaq: PAYX,QQQQ), (AMEX: DIA, AMEX: SPY, AMEX: SDS, AMEX: DOG, AMEX: QLD))

Weekly Initial Jobless Claims

This mornings regular reporting of initial jobless claims noted a weekly figure of 450,000. While the measure was 10,000 off the prior week result, it's still troubling in absolute terms. In fact, the four-week moving average of 440,500 is the highest its reached since April of 2002, which we remind you was at the tail-end of the last economic "contraction" and a couple quarters from stock market bottom.

With employment, things will be the worst toward the end, and signals arriving from retail, and already settled in within autos and housing, point to significantly higher unemployment ahead of us. An also troubling aspect of the report was the rise in the insured unemployed. Recent expert-commentary following Employment Situation Reports has highlighted the positive aspect of little change in the levels of insured unemployed. What will they say now???

The two components of unemployment are the newly unemployed and the continuously unemployed. While the inventory of unemployed has been growing, the flow of newly unemployed had been running at a steady rate. That's changing now for the worse. Insured unemployment (in other words, those collecting benefits) rose 114K in the week ended August 2nd, and that's up from the four-week average, also indicating a flow rate change. As a result, I expect we're about to enter the "panic stage" of the corporate mind's interpretation of the business cycle.

I think the business cycle, as seen within the mind of the corporate executive, goes something like this:

1. Denial - Business softening around them, but embedded memory of recent success is blinding
   
2. Worry - Maybe we should start thinking about pressuring our suppliers
3. Acceptance - Cut costs, but let's not forget about the coming recovery, so don't fire too many folks
4. Panic - Fire everybody before we go bankrupt and I lose my job and my options turn worthless
5. See a psychologist, take a long vacation, reinvent company and selves
6. Comeback - Watching Rocky movies, talking to executive recruiters
   
7. Success - New job, life is good again
   
8. Cockiness - I'm king of the world!
   
9. Denial....

Please see our disclosure at www.WallStreetGreek.blogspot.com.

Russian Troops Moving in, Defying Bush

More Russian troops are moving into Georgian city, defying Russia's own truce and world calls. McCain suggests America review Russian membership in G8 and World Trade Organization... we infer, due to criminal and barbaric actions, and outright lying to world community for propaganda's sake. Rice says it's time for Russian President Medvedev to live up to his word.



Article interests AMEX: DIA,SPY,SDS,DOG,QLD, NYSE: LMT,COL,LMT,GD,ATK,ASEI,NYX, Nasdaq: QQQQ. Please see our disclosure at the Wall Street Greek website.

Bush Stands for Georgia

By "The Greek"

President Bush took a strong position for Georgia, offering Saakashvili action behind his words of support for democracy. As Russia gives the finger to the world, declaring truce, while raping Georgian cities at the same time, killing civilians indiscriminately, America stands up and says enough is enough!

Today, minutes ago, President Bush gave us reason to be proud again. Against the possibility of war with cold war rival Russia, George stood up for democracy and stood behind his word.

First a Little Background

Not long after Georgia declared its true independence from Russia, President Bush visited the Republic of Georgia. He declared his and America's support for this young democracy that sought to grow in the dark shadow of Russia. By the way, Georgia was part of a tour Bush took through the region and Europe, and it mostly included protests against America. Never during his entire presidency has he been welcomed with such passionate support from any foreign nation. This was clearly a democracy that understood the words of our forefathers, and looked forward to building a nation in our image.

Over the past few months, Russia has tested George's word, and underestimated the word of all Texans. When a Texan gives his word you see, we all know well, he'll die for it. Russia has criminally and illegally, not to mention immorally and unethically raped, pillaged and terrorized the Republic of Georgia ever since its independence movement began in the early '90s.

Russia has cut gas and electricity supply to Georgia every winter since its Rose Revolution a few years ago, putting the city into darkness and forcing families to huddle together for warmth. Russia, the most important purchaser of Georgian goods, especially wine and mineral water, suddenly declared these goods below Russian safety standards. "The Greek" believes Russia has even been behind supposed "separatist" terrorism against Georgian pipelines. Russia has certainly inspired political upheaval in Georgia, in its attempt to dethrone the American supported Saakashvili. God bless him for standing tall through it all.

"Wake up world! Russia is not protecting its citizens in Ossetia and Abkhazia; it is stealing Georgian history and erasing cultures."

When Georgia first declared independence, Russia supported gangs and criminals in ethnically diverse regions of the country. What happened in Abkhazia, however, was its most blatant violation of human rights. Russia helped criminal mafia organizations rule the region, and another two regions including Ossetia, aiding them to force the ethnic majority, some 70% of Abkhazian natives, out of their own homes. Those people, most of whom became refugees in the Georgian capital and some of which made their way to America, have suffered greatly. Then, to add insult to injury, Russia gave passports to the leftover criminals, and declared them protected as citizens. Wake up world! Russia is not protecting its citizens in Ossetia and Abkhazia; it is stealing Georgian history and erasing cultures.

An Aside on Georgians in America

I've personally broken bread with them in Brooklyn, where they have their only religious mission in America. That's a whole other story, but Georgians deserve a church to worship in, and I vow to create a bank account in escrow, in partnership with one Father Tandilashvili, to raise money for the purchase or construction of the first Georgian church in America, one I've promised should be named Saint Nino's. Keep looking in my sidebar, as I will soon post details of how you can contribute to the fund to help these people found a positive place within which they can gather. They currently meet in a rough neighborhood where none of them live, to congregate in a high school just once a week. They conduct baptisms, weddings, regular ceremonies and group project efforts all in one long day each week, but they push forward nonetheless. God bless that young American spirit still alive in new American minorities.

I ask one more thing, and of the Greek/American community and Greek Orthodox Church. I ask we/you help them, your Orthodox brothers. Our church is rich and successful, and we even have properties we could donate or offer for sale to them under generous terms and in faith; we have a church not far from me on East 103rd Street, where only a handful of the faithful still attend. That church would be full of Georgians, and I seek it for them.

Georgia Perseveres

Georgia, in the meanwhile, has expanded its export channels, strengthening relationships with the United States and Europe. Its young economy has grown at a remarkable rate as a result, and has attracted investment and tourism from Kazakhstan, Turkey, Greece, Israel and Armenia as well. It has been seeking entry into NATO and the European Union.

All these actions have irked their Russian masters of the past. Vladimir Putin views Georgia as a Russian village that he can set ablaze whenever he likes. He believes President Bush has given him the logical reasoning and right to do so through America's efforts in Afghanistan and Iraq. He was grossly in error.

Moscow declared a truce just one hour before France's Sarkozy arrived to the Kremlin to secure one. This way, Russia could preserve its powerful position, and declare the move its decision, not one forced by the west. Meanwhile, on the ground, Russian forces have free reign to treat Georgians like their livestock to be slaughtered at will. Even reporters have been murdered by marauding Russian jets that deliver evil fire indiscriminately.

Enough is enough! President Bush, who has the advantage of satellite intelligence, knows better than to believe Russian representatives at the UN. He knows Russia moved into Gori after they declared they were never there. He knows Russia pillaged the town, which by the way, does not resemble Beverly Hills in the least.

When I was there not three years ago, it was a sad gray place reminiscent of Soviet era architecture, devoid of any creativity or passion. The streets were full of holes, the homes were falling apart and the people were depressed. But things were changing. Gori looked to be on the way back to becoming a haven of industrial production, or should have been. What Russian military men could find in Gori to pillage I have no clue, but I know it will be a shame they will carry on their souls to the day of their judgment.

Well, George made me proud today. He understands Putin's diplomacy and is playing his game now. He is sending humanitarian aid via military delivery. In other words, American warships will land and make port in Georgian territory to deliver humanitarian aid to what would have been a starving Tbilisi otherwise. Russian illegal control of the East West Highway will be effectively muted. Give the finger to America, and you better mean it. Let a Russian bullet find an American truck, and watch how fast Abkhazia and Ossetia are Georgian again. America will enforce the terms of the truce. Borders will be restored to August 6 status.

"Georgia can exhale today, while the world holds its breath."

Putin figured America would be too concerned about its impending situation with Iran and its step up against al-Qaeda in Afghanistan. Russia assumed America would play diplomat and trade Georgia for Iran. No! America doesn't deal like that. We stand on values, and values are not negotiable. Georgia can exhale today, while the world holds its breath.

With American and Russian troops on opposite sides in a tinder box of a nation, world war is not impossible. Georgia has also rallied support from its brothers in the Ukraine, Poland, Lithuania and other ex-Soviet slaves. Russia has severely underestimated American values and resolve this time, not to mention the word of one important Texan. We will stand for freedom and law every time and in every place, and we proved it again today. Thank you George for reinforcing American pride and passion.

See also our weekly video piece, "Georgia Russia War Overshadows Olympics"

Article interests AMEX: DIA, AMEX: SPY, AMEX: SDS, AMEX: DOG, AMEX: QLD, Nasdaq: QQQQ, NYSE: NYX, NYSE: LMT, NYSE: COL, NYSE: GD, NYSE: NOC, NYSE: ATK, NYSE: RTN. Please see our disclosure at the Wall Street Greek website.

Pre-Market - Retail Sales Sputter

By "The Greek"

The premarket report is back. The provider of your most important financial market navigation tool, "The Greek's Week Ahead," will resume publishing of our pre market reports as of today. We expect this concise summation of the market moving news of the day, with value-added insight, will help you navigate through the trading day and understand the market factors at the opening.

(Article interests AMEX: DIA, AMEX: SPY, AMEX: DOG, AMEX: SDS, AMEX: QLD, Nasdaq: QQQQ, NYSE: NYX)

Economic Data

Retail Sales (July)

Retail sales fell for the first time in five months, falling 0.1% in July, missing consensus expectations for no change (according to Bloomberg's survey). Sales were impacted by poor auto sales. Excluding autos, retail sales rose 0.4%, still short of expectations for an increase of 0.5%.

There's no surprise here, since we knew the automobile market was tanking early in the second quarter, thanks to the troubling talk coming out of Detroit's HQ offices. With stimulus running dry now, retail should only get worse, meaning a tough holiday season and rising unemployment. And the folks in retail are not ready for layoffs, meaning that six month store of money you're suppose to have in case you lose your job is just not there. This portends further foreclosure trouble and an even more tightening of consumer spending. These are also the folks who spend most freely, no matter how well-advised they are about where the best sales are.

Macy's Results

Macy's reported July-Quarter earnings of $0.17, before items, two cents short of consensus expectations. Operating within the struggling department store segment, Macy's claims to be gaining market share on weaker competitors. Still, we doubt that matters to shareholders right now, as the retail trade industry allows portfolio managers options that extend beyond department stores. Macy's (NYSE: M) shares are lower some 3.8% in premarket activity as a result. Same-store sales sank 2.1% in the quarter.

Macy's promises a new strategy for the upcoming holiday shopping season, which it believes will present a compelling option. The company is incorporating toy marketer FAO Schwarz in up to 275 Macy's stores this year. M also says its localization initiative is on track. We must admit to not having read about the initiative, but it sounds to us like Macy's has New York on the brain. It's NYC store does a mega business on the shopping of tourists, especially foreign ones these days, and this localization strategy sounds to us like a way to boost sales by appealing to locals.

The problem is that no matter how important that NYC store is, Macy's lives and dies by the actions of the rest of the country. That said, the company seems to benefit from its direct mailing efforts that appeal to locals, and this would work across the country. (Maybe we'll take a closer look for you today)

"Yes Virginia, there is a Santa Claus, but he's not coming here this year."

In any event, we've started seeing signs of weakness in even the retail stalwarts at Wal-Mart (NYSE: WMT) and Costco (Nasdaq: COST), and Target (NYSE: TGT) has been troubled for months now. Yes Virginia, there is a Santa Claus, but he's not coming here this year...

Russia Blatantly Violating Truce Agreement and the Voice of the World

Russia's political action in Georgia exposes long-standing ignorance to world opinion, and Russia's ego is just plain getting old if you ask me. If not for its store of Soviet era nuclear weaponry, we're sure by now Russia would have been set straight. It's a shame Russia's leadership is more reminiscent of Joseph Stalin than it is of the scores of poets, scientists, performers, artists, philosophers who have offered so much to global society. (Tell us more about the great Russians that come to mind - comment below)

Georgia's President Saakashvili, with shaky voice and beaten bravado, is claiming that Russia has already violated its own truce. He states that Russian troops have once again engaged Georgians in Gori, and have even moved deeper into Georgian territory. This while Georgia's ports are reportedly operating normally. We have no reason to doubt Mr. Saakashvili, who we have found relatively on the side of righteousness, even when he lies for his country's sake. In other words, when you're dealing with animals, sometimes you have to treat them like wild animals. I think a great man once said something about the risk of giving pearls to swines, lest they trample them and tear you to shreds. Georgia, and the world, faces a great swine in the Kremlin.

Oil, Dollar and Data

Oil is rising in early trading, on the back of recent declines and ahead of data that is expected to show a small build in inventory in this morning's Petroleum Status Report. The outlook for the dollar has grown mixed here, and so oil is wavering back and forth. Momentum traders are leaning lower still, in our view, but the geopolitical factor overhangs, and we're not talking about Georgia/Russia (Read IRAN). We see oil softening further, the dollar strengthening further, and it all going to hell when Israel bombs Iran. Tread softly in the space...

Full Disclosure: Mr. Kaminis has created and agreed to Wall Street Greek policy to not author articles about securities he personally owns or holds beneficial interest in. In the event of a special case, Markos will make full disclosure of ownership interest. Please see our disclosure at the Wall Street Greek website, www.wallstreetgreek.blogspot.com

Stagflation Grips Asian Economies

By Guneet Singh Sahni - Asian Markets Analyst

Asian markets were mixed last week on falling crude and a strengthening dollar.

(Article interests AMEX: DIA, AMEX: DOG, AMEX: SDS, AMEX: SPY, AMEX: QLD, Nasdaq: QQQQ, NYSE: NYX, Nasdaq: ASIA, Nasdaq: PRASX, AMEX: PUA, AMEX: NWD, Nasdaq: MEAFX, Nasdaq: EBASX, Nasdaq: EVASX, Nasdaq: MACSX, Nasdaq: MATFX, AMEX: CZJ

Asian markets witnessed mixed results last week on the back of concerns for decelerating economic growth. Asian economies have also been hit by falling exports to the U.S. and softening domestic demand. Consequently, oil prices cooled down to a three-month low of $115 per barrel on fear of slowing demand from Asian economies. The dollar catalyst was also a factor in oil's demise, as it gained against most of the Asian currencies.

Japan's Nikkei closed flat for the week on expectations that Japanese industry will be able to withstand the slowdown; this as Toyota Motors (NYSE:TM) maintained its growth forecast. China's CSI 300 tumbled the most (declining 8.8%) in six weeks as the government abstained from announcing new measures to boost the equities market ahead of the Olympic Games. The CSI 300 Index has lost 51% from this year's high, as rising prices and slow growth hurt earnings. Taiwan's primary index, the Taiwan Weighted, and India's BSE Sensex were smart outperformers, gaining more than 3% for the week.

The Bank of Korea unexpectedly raised its benchmark interest rate to an eight-year high of 5.25%, saying the fastest inflation in a decade poses a greater threat than slowing economic growth. Indonesia's central bank also raised its policy rate by a quarter point, to 9%, which was in line with expectations. This came after Consumer Prices in Indonesia jumped 11.9% in July. Taiwan's Consumer Price Index surged to a 14-year high of 5.92%, after the government ended caps on power prices and storms led to an increase in food costs.

This Week's Demand Driver

This week's gross domestic product data from Japan is expected to show that the economy contracted in the second quarter, validating fears of a recession. Other Asian economies will be coming out with their growth and inflation figures, which will set out the priorities for the central banks to choose between growth and inflation.

Monday: Malaysia's Industrial Production data for the month of June will be announced at 12:00 PM local time. Markets expect Industrial Production to moderate due to slowing exports. Singapore's second quarter GDP data will also be released, and it is expected to show further slowing.

Tuesday: China will come out with its inflation figures for the month of July at 10:00 AM local time. China has been witnessing excessive capital flows, on account of its appreciating yuan, thereby increasing inflation. The Indian market will be closely watching for its Industrial Production data, as it should guide the future direction of one of the last month's best performing Asian markets.

Wednesday: The Cabinet Office of Japan will release its second quarter GDP report at 8:50 a.m. in Tokyo. This will be a popular event, after the Japanese government acknowledged earlier this week that the economy may be in recession. China's retail sales data will be released at 10:00 AM local time. Korea's unemployment rate for the month of July will be released at 12:30 PM local time. The Securities & Exchange Board of India (SEBI) will hold a board meeting on the 13th of August to review FII regulations. The board may revisit the norms relating to participatory notes and securities lending and borrowing mechanisms.

Thursday: China's Industrial Production data will be released at 10:00 AM local time. Indonesia will come out with second quarter GDP figures, and Indian WPI inflation figures will be announced at 5:00 PM local time.

Friday: Hong Kong's second quarter GDP growth rate will be announced at 4:15 PM local time. Singapore retail sales data will provide an outlook on consumer demand. The Indian market is closed on behalf of India's Independence day.

For more detail on individual markets Japan, China and India, see:

• Japan Market Strategy - Slipping Into Recession
  
• China Market Strategy - Chinese Stocks Collapse
  
• Indian Market Strategy - India Outperforms
  

Full Disclosure: Mr. Sahni has agreed to Wall Street Greek policy to not author articles about securities he personally owns or holds beneficial interest in. In the event of a special case, Guneet will make full disclosure of ownership interest. The work of contributors to Wall Street Greek is their own, and may not necessarily agree with the opinion of the site or its founder, and does not constitute financial advice. Please see our full disclosure at the site (Wall Street Greek).

Japan Market Strategy - Slipping Into Recession

By Guneet Singh Sahni - Japan Market Analyst

Last week, the Nikkei 225 Index posted a modest gain of 0.6%, or 74 points, to close at 13,168 after Toyota Motors (NYSE:TM) was able to maintain its growth outlook for FY2008. The Financial Sector was a major dampener, offsetting the gain. The decline was led by Mitsubishi UFJ (NYSE:MTU) and Sumitomo Mitsui Financial Group Inc. (OTC: SMFJY). Mitsubishi UFJ recorded a decline of 66% in net profits on the back of increasing provisions and interest rates.

Article interests NYSE: JEQ, JOF, NYX, Nasdaq: IIJI, JSCFX, QQQQ, AMEX: DIA, SPY, DOG, SDS, QLD)

Recession Fears Haunt Japan

Japan's Cabinet Office said on Aug. 7 that the economy may be in a recession, due to falling exports and rising prices that are impacting consumer spending. Earnings have fallen on component cost increase, thus stalling wage hikes and cooling consumer demand. This has raised fears that GDP probably contracted last quarter, bringing the country to the brink of its first recession in six years.

Sentiment among Japanese merchants in July fell to the lowest level since the last recession, as higher food and oil prices discouraged consumers from spending. The Economy Watchers Index, a survey of barbers, taxi drivers and others who deal with consumers, dropped to 29.3, the lowest since October 2001, from 29.5 in June... but the recession may be mild.

Japanese machinery orders (an indicator of capital spending in three to six months) for the month of June fell less than expectations, signaling that any recession may be mild. Equipment Orders declined 2.6% sequentially (against the consensus estimate of 9.9%). Equipment Orders had climbed 10.4% earlier in the month of May.

Outlook

Any recession this year would be different from previous ones, as the corporate sector is prepared to face the slowdown. Unlike past recessions, companies have trimmed excess debt, workers and capacity. Even Japan's new Economic Minister, Yosano, says that Japan will recover once the U.S. and global economy improves. Exporters are less reliant on customers from the U.S. and Europe, where the global slowdown is most pronounced. Still, exports are slowing, and soaring material costs have squeezed profits, compelling companies to cut production and hiring. As per Japan's economic policy makers, gross domestic product probably fell at an annual 2.3% rate last quarter, the first contraction in a year.

Full Disclosure: Mr. Sahni has agreed to Wall Street Greek policy to not author articles about securities he personally owns. In the event of a special case, Guneet will make full disclosure of ownership interest. The work of contributors to Wall Street Greek is their own, and may not necessarily agree with the opinion of the site or its founder, and does not constitute financial advice. Please see our full disclosure at the site (Wall Street Greek).

China Market Strategy - Chinese Stocks Collapse

By Guneet Singh Sahni - China Market Analyst

Wall Street Greek and Market Moving News cover all economic reports daily. Please visit the sites' front pages to see current data and analysis.

The CSI 300 Index plunged 8.8%, as the Chinese Government abstained from announcing any new growth measures to boost the markets before the Olympics. The markets were expecting some more loosening of economic policies to help boost the manufacturing sector.

Article interests (AMEX: DIA, SPY, SDS, DOG, QLD), Nasdaq: QQQQ, NYSE: NYX, Nasdaq: ASIA, Nasdaq: PRASX, AMEX: PUA, AMEX: NWD, Nasdaq: MEAFX, Nasdaq: EBASX, Nasdaq: EVASX, Nasdaq: MACSX, Nasdaq: MATFX, AMEX: CZJ, Nasdaq: CHINA, PCX: FXI, PCX: CYB

In an indication of slowing growth earlier this week, Bloomberg's consensus estimate predicts China’s trade surplus declined 17% Y/Y, to $20.3 billion for the month of July. This will be the fourth straight quarterly fall for an economy whose growth is dependent on exports. In an earlier indication of ailing growth, GDP growth eased to 10.1% Y/Y for second quarter. On the other hand, China is concerned about the overheating of its economy as unwanted foreign capital inflows find their way in, swelling currency reserves to $1.8 trillion.

Fight against slowdown....

Regulators raised tax rebates on exports of textiles and garments from 11% to 13% this month. The purpose of the move was to aid manufacturers in their fight against rising labour and raw-material costs. China has also halted the appreciation of the yuan, and increased bank lending quotas to levels in line with recently announced policy for robust growth. This leads the Government to provide an optimistic growth outlook for the third quarter.

As per China's state information center, GDP growth may accelerate to 10.2% in the third quarter, as industrial production quickens and the Sichuan province rebuilds post the May 12 earthquake. GDP growth was sapped in the first half by the effects of snowstorms and the nation's worst earthquake in 58 years, according to the report.

Moderating Inflation

Inflation for the month of July has shown signs of cooling off by increasing 6.5%, the slowest pace in seven months. Inflation has moderated from 7.1% in June and its 12-year high of 8.7% in February. According to China Securities Journal, inflation will slow to 6.6 % in the coming month. Inflation figures will be announced on the 12th of August. The government's 2008 inflation target is 4.8%.

Curbing Capital Flows

The government wants to prevent appreciation of the yuan and interest rates at their highest since 1998 from stoking investment flows and fueling inflation. Consequently, Chinese regulators approved new rules last week to curb illegal inflows of capital. The new rules will increase the authority of regulators to check transaction documents and bank-account information for currency payments. The rules also simplify approvals of outbound investments and ease capital raising in China by foreign companies. The authorities have also set up an electronic network to monitor export income, in order to stop speculators using bogus contracts to bypass investment rules.

Full Disclosure: Mr. Sahni has agreed to Wall Street Greek policy to not author articles about securities he personally owns or holds beneficial interest in. In the event of a special case, Guneet will make full disclosure of ownership interest. The work of contributors to Wall Street Greek is their own, and may not necessarily agree with the opinion of the site or its founder, and does not constitute financial advice. Please see our full disclosure at the site (Wall Street Greek).

Indian Market Strategy - India Outperforms

By Guneet Singh Sahni - Indian Market Analyst

India's BSE Sensex registered its fifth consecutive weekly gain, rising 511 points on the back of the drop in oil prices, short covering in the derivatives segment and positive global cues. The Sensex remained in positive territory throughout the week, but witnessed some profit-booking and finally closed at 15,167 with a gain of 3.5%. Strong buying was seen in interest rate sensitive industries like banking, autos and real estate, which lifted the indices up. Inflation at a new 13-year high is showing signs of peaking out, which the markets believe will hold the RBI from further increasing interest rates.

Mid-cap stocks also surged in this week's rally, on the back of bargain hunting in the recent meltdown. However metal stocks saw some profit booking on news that steel companies have agreed to hold prices at current levels. India’s WPI inflation increased to 12.02%, in-line with consensus estimates.

Article interests (AMEX: DIA, SPY, DOG, SDS, QLD), Nasdaq: QQQQ, NYSE: NYX, Nasdaq: ASIA, Nasdaq: PRASX, AMEX: PUA, AMEX: NWD, Nasdaq: MEAFX, Nasdaq: EBASX, Nasdaq: EVASX, Nasdaq: MACSX, Nasdaq: MATFX, AMEX: CZJ.

Top Gainers for the Week

The bulls remained in control for most of the trading sessions. BSE Bankex was the best performing index, by climbing 10% or 667 points to close at 7,395 points. Bankex has appreciated by 45% from its recent lows, outperforming the other indices. This was followed by the BSE Auto Index, which gained 8.6% or 314 points to close at 3,970; the index benefited from the fall in crude oil prices. Top gainers for the Sensex were Sterlite (NYSE: SLT) +4.43, Tata Motors (NYSE: TTM) +4.10%, HDFC (BOM:500180) +3.37%, HDFC Bank (NYSE: HDB) +3.03% and Grasim Industries (BOM:500300) +2.49%. Top losers included BHEL (BOM:600103) -2.88%, Bharti Airtel (BOM:532454) -2.25%, Rcom (BOM:532712) -1.78%, Ranbaxy (OTC: RBXLY) -1.68% and Hindustan Unilever Limited (BOM:500696) -1.47%.

Inflation showing signs of peaking off…

Wholesale prices surged to a 13-year high of 12.01%, in-line with consensus estimates for the week ended July 26. The relatively slower rise in WPI inflation numbers, as against 11.98% in the previous week, was on account of lower price increases in chemicals, textiles, metals, and specific primary items. Prices of most food items, including grains and vegetables, declined week-to-week showing signs of inflation peaking off from this level.

Looking at the components, primary articles were up 10.3%; manufactured products were up 10.8%; while the fuel price index was up 17.1%. Of the headline 12.01% WPI number, 6% is attributed to manufactured products; 3.7% to the fuel index, and 2.4% to primary articles.

Demand-side worries for inflation still remain

Even after continuous monetary policy tightening, the demand side pull on price levels is still there. Money supply (comprising currency in circulation, bank deposits and funds invested in other savings plans) is still above RBI's target, and grew 20% in the two weeks to July 18, from a year earlier.

Runaway inflation has forced the central bank to raise its year-end inflation target to 7% from 5.5%, and to lower its economic growth estimate for the year ending March 2009 to 8%, from an earlier prediction of 8%-8.5%.

Industrial Production expected to moderate after disappointing last two months of slowdown

June Industrial Production data is expected to fare better following weak numbers in May. Industrial production grew at the slowest pace in more than six years in May 2008, at 3.8%, as against 10.6% in the same month of 2007, with manufacturing showing signs of acute deceleration.

Industrial growth is expected to moderate in the medium-term, on the back of tightening monetary policy coupled with rising input costs.

Banks follow the race in raising Prime Lending rates after Central bank raises interest rates thrice in two months

Leading public sector lenders including Bank of India (BOM:532149), Canara Bank (BOM:532483), Bank of Baroda (BOM:532134) and Corporation Bank (BOM:532179), have increased their benchmark prime lending rate to 14%, while Dena Bank (BOM:532121) has raised its PLR to 14.25%. Public sector banks hiked their lending rates following the footsteps of ICICI Bank (NYSE: IBN) and Punjab National Bank (BOM:532461). ICICI Bank is India's largest private sector bank and Punjab National Bank is the second largest. These PLR hikes come in the aftermath of the Central Bank's quarterly monetary policy review, in which it hiked the cash reserve ratio and repo rate by 0.25% and 0.5%, respectively, to check inflation.

Outlook - Rally to continue on back of robust IIP numbers and cooling oil

We expect the bear market rally to continue if crude shows further signs of weakness, as India being a net importer of oil, gains the most from cooling oil prices. The Indian basket of crude oil has come down from its high of $143 per barrel to $115 per barrel. Also India's corporate earnings for the April-June quarter have withstood the slowdown, although companies have been affected by non-operating expenses like high interest costs and forex losses.

The government is planning to make it mandatory for iron ore companies to sign long-term supply contracts with steel companies, in order to curb high prices of raw-materials - which can help to contain the price spurt in steel products. While a drop in the prices of oil and commodities could boost sentiment, the industrial production report scheduled for release on Tuesday and the outcome of the SEBI meeting on Wednesday could influence market movement. This week, the market would have only four sessions due to the holiday on Friday for Independence Day.

Full Disclosure: Mr. Sahni has agreed to Wall Street Greek policy to not author articles about securities he personally owns or holds beneficial interest in. In the event of a special case, Guneet will make full disclosure of ownership interest. The work of contributors to Wall Street Greek is their own, and may not necessarily agree with the opinion of the site or its founder, and does not constitute financial advice. Please see our full disclosure at the site (Wall Street Greek).

Week Ahead - Capital Flows Driving Stocks

"The Greek's Week Ahead" has been engineered to provide investors with a reference tool for the week's upcoming economic reports and other market-moving events, including earnings reports.

Article interests (AMEX: DIA, DOG, SDS, SPY,QLD), Nasdaq: QQQQ, NYSE: NYX.

Back when I was just a tadpole meandering through financial market experiences and making mistakes, I would have been dumbfounded by the stock market's rally since July 15th. However, now that I'm a wise toad, I understand that while fundamentals move stocks over the long-term, in shorter periods, capital flows often play an even more important role.

Unemployment moves upward to 5.7%, weekly initial jobless claims begin to take off (last week hitting 455,000), and corporate news from Merrill Lynch (NYSE: MER) to AIG (NYSE: AIG) to Wal-Mart (NYSE: WMT) all seem to imply there's more trouble ahead. Yet, the broader stock market rose last week, and the most since April -- on the Dow Jones Industrials chart anyhow. The Dow jumped 3.6% last week, while the S&P 500 moved 2.9% higher and Nasdaq rocketed 4.5%.

"Greek," you're saying, "it was the FOMC meeting man... the boys indicated they would leave rates unchanged (and stocks unhampered) for a while longer... and investors are enthused about softening oil prices." Yes, of course these fundamental positives are playing a role, but we also know consumer spending should tail off through the rest of this year and unemployment is rising. So why are stocks psyched then? If there was just one factor we could look toward, which would it be then...

I think it's the dollar, more than anything else, that is driving the machine these days. The Fed's next move is expected to be a hike, and the stock market has given its approval for it since nobody wants to see inflation weigh on the backs of everything. Meanwhile, Jean-Claude Trichet and the rest of the gang over there had to back track a bit last week. European economies have deteriorated significantly since the ECB's muscle flexing move to raise interest rates a quarter point. Last week, Jeannie had to hold key rates steady, as did the Bank of England, in light of rapidly deteriorating euro zone economies, and a similarly crashing housing market in the U.K. On an aside, congrats to Barclay's (NYSE: BCS) for putting in a decent showing; keep your eye on BCS, as it may be eyeing up an American asset on the cheap.

Back to topic... the dollar. Momentum took the euro/dollar exchange rate so far, that as the fundamentals shift, capital is unwinding out of the trade in a hurry. And with the dollar tied to oil prices, the same goes for the crude pit. As a result of this and new fears of global economic decline, the commodity bubble is now confirmed to be bursting. That said, we found ourselves shaking our head in agreement with an oil trader who is viewable within our weekly video piece, "Georgia Russia War Overshadows Olympics." He insisted that momentum seems to be running from crude now, but at any moment, a geopolitical event could change everything.

All that capital has to find a place to go, and if U.S. rates are rising, and institutions like General Motors (NYSE: GM), Ford (NYSE: F) and others are projected to go under (by one analysts' estimate last week), well then, bonds wouldn't look too hot an option either. So, money is flowing into equities it seems.

Money flow, folks, drives price. It's the old supply/demand lecture we all fell asleep through while working on our undergraduate degrees, and it's playing out in living color before our eyes; it ain't so boring in the real world is it...

Here's the problem... According to AMG Data Services, money moved out of equity funds, into money market, taxable bond and municipal bond funds over the four weeks ended last Wednesday. The chart seems to indicate that last week was no different. "Why Greek?,"
I ask myself.

My conclusion is (besides that I need to stop talking to myself), that there's no inconsistency here. Money may have moved out of those funds, but that's because it takes the retail investor and retirement saver some time to catch up to the new trend. Meanwhile, portfolio managers and institutions are likely shifting capital destinations out of crude and commodities, and related stocks, and into bargain priced equities. The money is flowing, that's for certain, and stocks are rising while other investments lose value. Thus, I believe my argument is based in truth.

The Week Ahead

This coming week is not heavy on economic reports, but sports a good deal of retail industry earnings reports. Outside of the capital flow theme that we couldn't pass on, the week really has a retail focus.

Monday

The illegal activities that Russia is engaged with in the Republic of Georgia, under the premise of "protection of Russian citizens," is likely to dominate non-Olympics related news on Monday. While Russian aircraft terrorize civilians and Georgian forces indiscriminately, representatives from North and South Ossetia are expected to hold a news conference on Monday. That seems to imply some sort of declaration of independence as a "free" nation, actually operated by Russia, but then again, why would Russia set themselves up for future trouble like that.

With attention nearly completely focused on China these days, the nation's trade report on Monday should only intensify that focus. China's trade surplus is expected to move lower in July, year-to-year.

Verizon (NYSE: VZ) averted a strike, keeping many web publishers on the air... Your earnings schedule follows:

Earnings Announcements for Monday, August 11 Company Symbol Time 4Kids Entertainment KDE Before Market Open A.C. Moore Arts & Crafts ACMR Before Market Open Aastra Technologies Inc. AAH.TO After Market Close Abraxas Petroleum AXAS After Market Close Acusphere Inc. ACUS Time Not Supplied Advanced Photonix API After Market Close AirMedia Group Inc. AMCN Time Not Supplied American Apparel APP Time Not Supplied American Defense Systems Inc EAG Before Market Open AMERICAN ORIENTAL BIOENGR INC AOB After Market Close American Science and Engineering ASEI After Market Close Anchor BanCorp Wisconsin ABCW Time Not Supplied Applied Energetics, Inc. AERG Before Market Open AQUILINE RES INC AQI.TO Before Market Open ArQule, Inc. ARQL Before Market Open Array BioPharma Inc. ARRY After Market Close ARROWHEAD RESH CORP ARWR Time Not Supplied Artes Medical, Inc. ARTE After Market Close AURORA OIL & GAS CORP AOG Time Not Supplied AUSTRALIAN EDUCATION TRUST AEU.AX Time Not Supplied AVI BioPharma AVII Time Not Supplied BANPU PUBLIC CO LTD BPFF.F Time Not Supplied BANRO CORP BAA Time Not Supplied BASIN WATER INC BWTR After Market Close BBVA Banco Frances BFR After Market Close BearingPoint, Inc. BE Time Not Supplied BioMimetic Therapeutics BMTI After Market Close Black Hills Corporation BKH Time Not Supplied BMP Sunstone Corporation BJGP Before Market Open Bowne & Co BNE After Market Close BRADKEN LIMITED BKN.AX 8:00 pm ET Breitburn Energy Partners LP BBEP After Market Close Buckeye Technologies Inc. BKI After Market Close Calpine Corporation CPN Before Market Open Capstone Turbine CPST After Market Close Carmike Cinemas, Inc. CKEC After Market Close CASCAL N.V. HOO After Market Close Century Casinos CNTY 09:30 am ET CHARIOT RES LTD CHD.TO Time Not Supplied CHINA COM INC CCHMF.PK After Market Close CK LIFE SCIENCES INTL HLDG 8222.HK After Market Close Clear Channel Outdoor Holdings, Inc. CCO 07:00 am ET Clearfield, Inc CLFD Time Not Supplied Companhia Energetica de Minas Gerais (CEMIG) CIG After Market Close Compania Anonima Nacional Teléfonos de Venezuela (CANTV) CANUY.PK Time Not Supplied COMPASS DIV HOLDINGS CODI Before Market Open CONCHO RES INC CXO After Market Close Conseco, Inc. CNO Before Market Open Consolidated Water CWCO Time Not Supplied Cousins Properties Incorporated CUZ After Market Close CRANE GROUP LIMITED CRG.AX Time Not Supplied CREW ENERGY INC CR.TO Time Not Supplied Critical Therapeutics, Inc. CRTX Time Not Supplied CRYSTAL RIV CAP INC CRZ Before Market Open Cumulus Media Inc. CMLS After Market Close D&E Communications DECC 4:00 pm ET Datascope Corp. DSCP After Market Close DealerTrack Holdings, Inc. TRAK Time Not Supplied Deerfield Capital Corp DFR Time Not Supplied Diebold DBD Before Market Open Douglas Holdings AG DOU.F Time Not Supplied Dune Energy, Inc. DNE Before Market Open Dyckerhoff DYK.F Time Not Supplied Edge Petroleum EPEX Time Not Supplied Emisphere Technologies, Inc. EMIS Time Not Supplied Energy Transfer Partners ETP After Market Close Ensign Energy Services Inc. ESI.TO Before Market Open ENTERPRISE GP HLDGS L P EPE Before Market Open EQUITY TRUSTEES LTD EQTYF.PK Time Not Supplied EURO RESSOURCES S A EUR.TO Time Not Supplied EV ENERGY PARTNERS LP EVEP After Market Close Excel Maritime Carriers Ltd. EXM Before Market Open FAR WEST MNG LTD FWM.TO Time Not Supplied First Citizens Banc Corp FCZA Time Not Supplied FirstCity Financial FCFC Before Market Open Fluor Corporation FLR Time Not Supplied FRONTEER DEV GROUP INC FRG Time Not Supplied FRONTIER REAL ESTATE INV TOKYO FOTRF.PK 03:00 am ET Fuel Tech, Inc. FTEK Before Market Open FUYAO GROUP GLASS INDUSTRIES CO. LT 600660.SS Time Not Supplied GASTAR EXPL LTD YGA.TO After Market Close Genius Products, Inc. GNPI.OB After Market Close GeoMet, Inc GMET Before Market Open GLACIER MEDIA INC GVC.TO Time Not Supplied Global Cash Access GCA After Market Close Globalstar, Inc. GSAT After Market Close Goldleaf Financial Solutions, Inc. GFSI After Market Close GRAN TIERRA ENERGY INC GTE Before Market Open Greenfield Online Inc. SRVY Before Market Open GSE Systems GVP Time Not Supplied GTC REAL ESTATE GTC.TA After Market Close Hana Biosciences, Inc. HNAB Before Market Open Harvard Bioscience, Inc. HBIO After Market Close HARVEST ENERGY TR HTE Time Not Supplied Henan Zhongpin Food Share Co. Ltd HOGS Before Market Open Heska Corporation HSKA Time Not Supplied Home Inns & Hotels Management Inc. HMIN After Market Close Hospitality Properties Trust HPT After Market Close Houston Wire & Cable Company HWCC Time Not Supplied Hydrogenics Corp HYGS Before Market Open Hypercom Corporation HYC Time Not Supplied Hythiam, Inc. HYTM After Market Close INERGY HLDGS LLC NRGP Time Not Supplied INERGY HLDGS LLC NRGP Time Not Supplied INFORMATION SERVICES GROUP INC III 4:30 pm ET InnerWorkings, Inc. INWK After Market Close INNOTEK LIMITED M14.SI Time Not Supplied Innotrac INOC After Market Close Insight Enterprises, Inc. NSIT After Market Close InSite Vision Incorporated ISV After Market Close Inspire Pharmaceuticals ISPH Before Market Open Integrated Electrical Services, Inc. IESC After Market Close Inter Parfums, Inc. IPAR After Market Close INTERMAP TECHNOLOGIES CORPORATION IMP.TO After Market Close INTERSECTIONS INC INTX Time Not Supplied ISCO International, Inc. ISO Time Not Supplied Jaguar Mining Inc. JAG.TO After Market Close John Bean Technologies Corporation JBT After Market Close JUMPTV INC JTV.TO Time Not Supplied Keryx Biopharmaceuticals, Inc. KERX Before Market Open Knology, Inc. KNOL Time Not Supplied Kowabunga! Inc. THK After Market Close Lawson Products LAWS Time Not Supplied LDK Solar Co., Ltd. LDK After Market Close Liberty Media Corporation LINTA Before Market Open LIFESTYLE INTL HLDGS LTD LFSYF.PK Time Not Supplied Loral Space&Communications LORL After Market Close Manitoba Telecom Services MBT.TO Time Not Supplied MannKind MNKD After Market Close MarkWest Energy Partners LP MWE Time Not Supplied McDermott International Inc. MDR After Market Close MCF Corporation MERR After Market Close Medis Technologies Ltd. MDTL Before Market Open Medivation, Inc. MDVN After Market Close Merge Technologies Incorporated MRGE After Market Close Metabolix, Inc MBLX After Market Close MFS TECHNOLOGY 5BM.SI After Market Close MIVA Inc. MIVA After Market Close Motorcar Parts of America, Inc. MPAA Time Not Supplied Napster NAPS After Market Close Natural Resource Partners L.P. NRP Before Market Open Neenah Paper, Inc. NP After Market Close Nelnet NNI After Market Close Newcastle Investment Corp. NCT Before Market Open NIPPONKOA INSURANCE CO NPPKF.PK 02:00 am ET Nuance Communications, Inc. NUAN After Market Close NutraCea NTRZ.OB After Market Close NYFIX NYFX After Market Close OBAGI MEDICAL PRODUCTS INC OMPI Before Market Open OMRIX BIOPHARMACEUTICALS OMRI After Market Close ORBCOMM INC ORBC Time Not Supplied Pacific Ethanol, Inc. PEIX Before Market Open PAION AG PA8.F Time Not Supplied Park-Ohio Holdings Corp. PKOH After Market Close Parkervision, Inc. PRKR After Market Close PDL BioPharma PDLI After Market Close Pepco Holdings, Inc. POM Time Not Supplied PET VALU CDA INC PVC.TO Time Not Supplied PETROBANK ENERGY & RES LTD PBG.TO Time Not Supplied Petrobras PBR Time Not Supplied Pfleiderer AG PFD4.F Time Not Supplied Pfleiderer AG PFD4.F 04:30 am ET PHYSICIANS FORMULA HOLDINGS INC FACE After Market Close PINNACLE AIRLINES CORP PNCL Before Market Open PNM Resources PNM After Market Close Point Blank Solutions, Inc. PBSO.PK After Market Close Progressive Gaming International PGIC After Market Close Proliance Intl. PLI Before Market Open QSC AG QSC.F Before Market Open Radian Group RDN Before Market Open RADNET INC RDNT Time Not Supplied RED BACK MINING INC RBI.TO After Market Close REGENCY ENERGY PARTNERS L P RGNC Before Market Open Rentech Incorporated RTK Time Not Supplied Repros Therapeutics, Inc. RPRX Time Not Supplied San Juan Basin Royalty Trust SJT Time Not Supplied SANDERS MORRIS HARRIS GROUP SMHG Before Market Open Smurfit Kappa Group PLC SKG.L 02:00 am ET SNU PRECISION CO LTD SNUPF.PK Time Not Supplied Sonus Networks SONS After Market Close SouthWest Water SWWC Before Market Open SSCP CO LTD SSCPF.PK Time Not Supplied Stamford Industrial Group, Inc STMF.PK Time Not Supplied Steak n' Shake SNS Time Not Supplied Sterling Construction Company, Inc. STRL Before Market Open Stifel Financial SF After Market Close STONEMOR PARTNERS LP STON Before Market Open SunOpta Inc. STKL Before Market Open Syncora Holdings Ltd. SCA After Market Close SYSCO Corporation SYY Time Not Supplied TARGA RESOURCES PARTNERS LP NGLS Before Market Open Tarragon Corp TARR Time Not Supplied TECHNO RYOWA LTD TYROF.PK 01:00 am ET Telik, Inc. TELK After Market Close Telkonet, Inc. TKO After Market Close Terremark Worldwide, Inc. TMRK Time Not Supplied The Orchard Enterprises, Inc. ORCD Time Not Supplied Thermage THRM After Market Close TICC CAPITAL CORP TICC Time Not Supplied Tokio Marine Holdings, Inc. TKOMY.PK 02:30 am ET TravelCenters of America TA After Market Close TriStar Oil & Gas Ltd. TOG.TO Time Not Supplied Turbochef OVEN After Market Close Unigene Laboratories, Inc. UGNE.OB After Market Close UNITED GROUP LIMITED UGL.AX Time Not Supplied Universal Power Group UPG Before Market Open Uranium Resources URRE Before Market Open VAALCO ENERGY INC EGY After Market Close Valeant Pharmaceuticals International VRX Time Not Supplied Valspar VAL Time Not Supplied VASTE WAARDEN NEDERLAND VWN NV VWAAF.PK Before Market Open Vicor VICR After Market Close VISION GROUP HOLDINGS LIMITED VGH.AX Time Not Supplied Wave Systems Corporation WAVX After Market Close WESDOME GOLD MINES LTD WDO.TO Time Not Supplied WUHAN IRON & STEEL CO LTD 600005.SS Time Not Supplied Xenos Group, Inc. XNS.TO Before Market Open ZCL COMPOSITES INC ZCL.TO Time Not Supplied

Tuesday

Last week, we offered insight into the ICSC-UBS Weekly Same-Store Sales Report. The headline that most press, if any, focused on was the 2.9% year-over-year growth. This was the strongest such growth in quite some time, and so was easy to attribute to economic stimulus checks. However, just a slightly closer look at the report offers important insight. On a week-to-week basis, sales were unchanged, and in light of the fact that stimulus has been distributed, we believe this indicates the stimulus related consumer spending boost is fading. This portends a tough second half of the year for retail and the consumer discretionary sector.

By the way, consumer discretionary stocks moved furthest as a group last week, rising 7.5%. At the same time, soft guidance from Wal-Mart impacted the shares of the retail giant and dampened broader hope. We think you can expect more soft guidance this week from a few of the industry's reports. Noteables reporting earnings include Wal-Mart (NYSE: WMT), Abercrombie & Fitch (NYSE: ANF), JC Penney (NYSE: JCP), Kohl's (NYSE: KSS), Macy's (NYSE: M) and TJX (NYSE: TJX).

We noted previously that China was set to report trade activity. Well, in the U.S., perhaps a market you are more interested in (maybe not), economists see a widened deficit for the month of June. Data will be released on Tuesday, and Bloomberg's consensus of economists is projecting the deficit will expand to $61.5 billion, from $59.8 billion in May. The deficit actually narrowed back in May, thanks to stronger export growth and weakened import growth on a soft dollar. But it looks like all that is about to change. The Treasury Budget is also set for report on Monday. Bloomberg's consensus sees an expansion of the budget deficit to $97.0 billion.

"Greed beats regulatory concern, rock, paper and scissors."

The SEC's naked short-selling rule is set to expire on Tuesday; remember, it had been extended once already, and regulators may view markets stable enough now to return to normal free market activity and standards. Notice has been effectively served to market participants, and perhaps will have longer lasting impact as a result... I doubt it though. Greed beats regulatory concern, rock, paper and scissors.

The International Energy Agency is set to report its monthly oil market report. Just returned from Beijing, President Bush is scheduled to meet with the Coalition for Affordable Energy. Overseas, China will report Consumer Price Inflation, which is seen easing some in July. In India, July Industrial Output is set for release.

Earnings Announcements for Tuesday, August 12 Company Symbol Time 3SBIO INC SSRX After Market Close Aareal Bank AG ARL.F Time Not Supplied ABSOLUTE SOFTWARE CORP ABT.TO Before Market Open ACCORDIA GOLF CO LTD ACGFF.PK 02:00 am ET ACCRETE ENERGY INC GZ.TO Time Not Supplied Achillion Pharmaceuticals Inc. ACHN Time Not Supplied ACI Worldwide, Inc. ACIW Time Not Supplied ACME Communications ACME After Market Close ActivIdentity ACTI Time Not Supplied ADVENTRX PHARMACEUTICALS INC ANX Time Not Supplied Aeterna Zentaris Inc. AEZS After Market Close Agria Corporation GRO Time Not Supplied Air Transport Services Group, Inc. ATSG Time Not Supplied ALBERTA CLIPPER ENERGY INC ACN.TO Time Not Supplied ALLOT COMMUNICATIONS LTD ALLT Time Not Supplied American Bio Medica ABMC After Market Close American DG Energy Inc. ADGE.OB 12:00 pm ET American Medical Alert AMAC Time Not Supplied AMERICAN PUBLIC EDUCATION INC APEI After Market Close AMIL PARTICIPACOES SA AMIL3.SA After Market Close ANVIL MINING LTD AVM.TO Time Not Supplied Apex Silver Mines Limited SIL Before Market Open APN News & Media Limited APN.AX Time Not Supplied Applied Materials AMAT Time Not Supplied Arotech Corporation ARTX After Market Close AUSTRALIAN AGRICULTURAL CO LTD AAC.AX Time Not Supplied AWD Holding AG AWD.F Time Not Supplied AZURE DYNAMICS CORP AZD.TO Time Not Supplied Baytex EnergyTrust BTE Before Market Open Bimini Capital Management, Inc. BMNM.PK Before Market Open BIOSENSORS INTERNATIONAL GROUP B20.SI Time Not Supplied BIRCHCLIFF ENERGY LTD NEW BIR.TO After Market Close Bob Evans Farms BOBE After Market Close Buzzi Unicem SPA BZU.MI Time Not Supplied BWAY Holding Company BWY Time Not Supplied Camtek CAMT Time Not Supplied CARE INVESTMENT TRUST INC CRE Before Market Open Chartwell Seniors Housing REIT CSH-UN.TO Time Not Supplied CHEROKEE INTL CORP CHRK Before Market Open CHINA AGRITECH INC CAGC.OB After Market Close CI Financial Income Fund CIX-UN.TO Time Not Supplied CLP Holdings Limited CLPHY.PK Time Not Supplied COCHLEAR LIMITED COH.AX 12:00 am ET Communication Intelligence CICI.OB Before Market Open COMPANHIA DE CONCESSOES RODOVIARIAS CCRO3.SA Before Market Open Composite Technology Corporation CPTC.OB Time Not Supplied Compton Petroleum CMZ Before Market Open COMVERGE INC COMV Before Market Open CONNACHER OIL & GAS LTD CLL.TO Time Not Supplied CONNORS BROS INCOME FD CBF-UN.TO After Market Close CONSTANT CONTACT INC CTCT Before Market Open CPFL Energia CPL After Market Close CPI Aerostructures CVU Before Market Open Cree Inc. CREE Time Not Supplied Curanum AG BHS.F Time Not Supplied CURASAN AG CUR.F Time Not Supplied Dendreon DNDN Time Not Supplied Denison Mines Corp. DML.TO After Market Close DENTSU INC DNTUY.PK 02:30 am ET DURATEX SA DURA3.SA Before Market Open Elbit Systems ESLT Before Market Open Eletrobras-Centrais Electricas Brasileiras S.A. CAIGY.PK Time Not Supplied ENERGY RECOVERY INC ERII After Market Close ETTEPLAN OYJ ETTPF.PK Time Not Supplied Finning International Incorporated FTT.TO 1:00 pm ET FIRST NICKEL INC FNI.TO Time Not Supplied First Quantum Minerals Ltd. FM.TO Time Not Supplied Fortress International Group Inc. FIGI Time Not Supplied FORTUNET INC FNET Time Not Supplied Fossil, Inc. FOSL Before Market Open FUJISASH CO LTD FJHLF.PK 02:00 am ET Funkwerk AG FEW.F Time Not Supplied G&K Services GKSR Before Market Open GBS Gold International Inc. GBS.TO Time Not Supplied Geberit AG GEBN.VX 01:00 am ET GigaMedia Limited GIGM Before Market Open Global Options GLOI Before Market Open GOL LINHAS AEREASINTELIGENTES GOLL4.SA Before Market Open Haltec Corp HLTCF.PK 02:00 am ET HearUsa EAR Time Not Supplied HemaCare Corporation HEMA.OB Time Not Supplied HILLENBRAND INC HI Before Market Open Hong Kong Highpower Tech Inc HPJ After Market Close Hunter Douglas N.V. HDG.AS 02:00 am ET Iam Gold Corporation IAG Before Market Open Icahn Enterprises L.P. IEP Time Not Supplied ICOP DIGITAL INC ICOP Time Not Supplied Image Entertainment DISK After Market Close Inhibitex, Inc. INHX Time Not Supplied INSULET CORPORATION PODD After Market Close Intelli-Check IDN Before Market Open InterContinental Hotels Group IHG.L Before Market Open IPC THE HOSPITALIST COMPANY INC IPCM After Market Close IRIDEX IRIX After Market Close ITURAN LOCATION & CONTROL ITRN Before Market Open JA Solar Holdings Co., Ltd. JASO Before Market Open Kinross Gold KGC After Market Close LAENNEN TEHTAAT LNTTF.PK Time Not Supplied Langer GAIT Time Not Supplied LEON'S FURNITURE LTD LNF.TO Time Not Supplied Leoni AG LEO.F Time Not Supplied LEROY SEAFOOD GROUP ASA LSG.OL Before Market Open Limelight Networks, Inc. LLNW Time Not Supplied LONGTOP FINL TECHNOLOGIES LTD LFT After Market Close LPP SA GDANSK LPGDF.PK Time Not Supplied LUZHOU LAO JIAO CO 000568.SZ Time Not Supplied Magellan Aerospace MAL.TO Before Market Open Meadow Valley MVCO Before Market Open Medion AG MDN.F Time Not Supplied Microfluidics International Corporation MFIC.OB Before Market Open Mobile Telesystems MBT 07:00 am ET MonoGen, Inc. MOG.TO After Market Close MULTIQ INTERNATIONAL AB MULQ.ST Time Not Supplied NEO MATERIAL TECHNOLOGIES INC NEM.TO Time Not Supplied NETREVELATION AB NETR.ST Time Not Supplied NEVSUN RES LTD NSU Time Not Supplied Norse Energy Corp. ASA NEC.OL 02:30 am ET Northcore Technologies Inc. NTI.TO After Market Close NUCRYST PHARMACEUTICALS CORP NCST After Market Close Nventa NVN.TO Time Not Supplied NVIDIA Corporation NVDA After Market Close P&F Industries PFIN Before Market Open PETROFALCON CORP PFC.TO Time Not Supplied Pharmathene PIP Time Not Supplied Phoenix Footwear Group PXG After Market Close QUEST RESOURCE CORP QRCP Before Market Open RAILPOWER TECHNOLOGIES CORP P.TO Time Not Supplied Rational AG RAA.F Time Not Supplied Ready Mix, Inc. RMX Before Market Open RENEWABLE ENERGY CORP AS RNWEF.PK 01:00 am ET RESPONSE GENETICS INC RGDX After Market Close Rheinmetall AG RHM.F Time Not Supplied RODMAN & RENSHAW CAP GP INC RODM Before Market Open RONA Inc RON.TO Time Not Supplied ROTHMANS INC ROC.TO Time Not Supplied ROYAL HOST REAL ESTATE INVT TR RYL-UN.TO Time Not Supplied SatCon Technology Corp. SATC After Market Close Schiff Nutrition International, Inc. WNI Time Not Supplied SEMAFO INC SMF.TO After Market Close SENORX INC SENO Before Market Open SHIMANO INC SHMDF.PK 02:30 am ET SIGA Technologies SIGA Before Market Open SINO FST CORP TRE.TO Before Market Open Sonic Solutions SNIC After Market Close SpareBank 1 Nord-Norge NONG.OL Time Not Supplied Spectrum Pharmaceuticals Inc SPPI Time Not Supplied SRA International, Inc. SRX After Market Close STARPHARMA HLDGS LTD SPHRF.PK Time Not Supplied Stillwater Mining Company SWC Time Not Supplied STRAITS TRADING CO S20.SI Time Not Supplied STYLIFE CORP TOKYO SYLFF.PK Time Not Supplied Suess Microtec AG SMH.F Time Not Supplied Suess Microtec AG SMH.F Time Not Supplied Superconductor Technologies SCON Before Market Open Supreme Industries STS Before Market Open Sydbank A/S SYDB.CO Time Not Supplied SYGNIS Pharma AG LIO.F Time Not Supplied Taseko Mines TGB After Market Close The TJX Companies, Inc. TJX Before Market Open Thomson Reuters Corporation TRI Time Not Supplied Time Warner Telecom TWTC Time Not Supplied Titan Pharmaceuticals TTP Before Market Open Towerstream Corporation TWER Before Market Open TRI-S SECURITY CORP TRIS After Market Close TRINIDAD DRILLING LTD TDG.TO Before Market Open TUCOWS INC TCX Time Not Supplied UBS UBS Time Not Supplied ULTRAPETROL BAHAMAS LTD ULTR After Market Close UNIVERSAL ENERGY GROUP LTD UEG.TO Time Not Supplied VANGUARD NATURAL RESOURCES LLC VNR Before Market Open VeraSun Energy Corp. VSE Before Market Open VERENEX ENERGY INC VNX.TO Before Market Open Vestfyns Bank A/S VEFY.CO Time Not Supplied Watson Wyatt Worldwide WW Before Market Open Weir Group plc WEIR.L Before Market Open WorleyParsons Ltd. WOR.AX Time Not Supplied Zapata Corporation ZAP After Market Close

Wednesday

The most important news of the week might arrive on Wednesday in the Retail Sales Report for July. The economists' consensus sees no change in monthly sales, but when excluding the big ticket AND distressed auto sector, sales are seen increasing 0.5%. Sales that included autos rose just 0.1% in June, but auto weakness should play a significant role in the figure this time around.

We heard a retail analyst interviewed on Friday say something silly. She said that she thought consumers may have stashed their stimulus checks away, and that they might spend the money when needed most, like during the "back to school" shopping season. We view "back to school" as a clear seasonal factor that will drive August stronger than the months heading into it. We think this has nothing to do with the stashing away of cash, but more to do with parents' views regarding the purchase of necessary tools for their childrens' education. That said, we anticipate less money will be spent for apparel this year than might have been spent otherwise. Still, don't forget that the population has grown, and so there is natural growth to be offset by the impact of economic softness.

Import Prices are expected to have risen a full percentage point in July, clearly impacted by oil prices. We should have something to look forward to in August though, as commodity prices, especially oil, have thus far eased sharply. July's increase would already prove significantly off the June price increase of 2.6%, if it meets economists' forecast.

Each time we discuss inventory reports, we note that the sales relative to inventories ratio is much more important. Business Inventories for June are due on Wednesday, and expected to increase 0.5%. We do not have a forecast for the ratio to sales, but we can compare to May, which posted an inventory increase of 0.3%.

Wednesday produces two regular weekly reports that we should note here; those being: the Mortgage Bankers Association Purchase Applications, noting weekly mortgage activity; and
the EIA Petroleum Status Report, which is currently much more likely to move the market. Last week's reported inventory build of 1.7 million barrels of oil, despite a recent draw in gasoline stores, only supported the move in oil lower through the end of the week.

Overseas, Japanese Q2 GDP is expected to contract by 0.6%, according to Barron's. Your earnings schedule includes:

Earnings Announcements for Wednesday, August 13 Company Symbol Time Abraxis Biosciences, Inc. ABII Before Market Open ACRODEA INC TOKYO ACDEF.PK Time Not Supplied Acta Holding ASA ACTA.OL Before Market Open Advanced Info Service PLC AVIFY.PK After Market Close AEGEAN MARINE PETROLEUM NETWORK INC ANW After Market Close ALLEN VANGUARD CORP VRS.TO Time Not Supplied Amsterdam Molecular Therapeutics AMT.AS Time Not Supplied Amtech Systems ASYS After Market Close ANGANG STEEL CO LTD ANGGF.PK Time Not Supplied APPTIX ASA APP.OL Time Not Supplied Arcandor AG ARO.F Time Not Supplied ARYx Therapeutics ARYX Time Not Supplied ATS Automation Tooling Systems Inc ATA.TO Before Market Open Avalon Pharmaceuticals AVRX Time Not Supplied Axel Springer AG SPR.F Time Not Supplied AXS-One Inc AXSO.OB After Market Close Babcock & Brown Air Ltd FLY Before Market Open Balfour Beatty plc BBY.L Time Not Supplied BEAUTY CHINA HOLDINGS LIMITED BTYCF.PK Before Market Open BERENS ENERGY LTD BEN.TO Before Market Open Biovail Corporation BVF Time Not Supplied Bluefly BFLY After Market Close BOOM LOGISTICS LTD BOL.AX Time Not Supplied British Energy Group plc BGY.L Before Market Open Brocade Communications Systems, Inc. BRCD Before Market Open CACI International CAI After Market Close CAE CGT Time Not Supplied Canadian Solar Inc. CSIQ Before Market Open CardioTech International CTE Before Market Open CELLCOM ISRAEL LTD CEL Before Market Open CHINA GRENTECH CORP LTD GRRF After Market Close CHINA INFORMATION SEC TECH INC CPBY Time Not Supplied CHINA SHIPPING DVLPMNT CO LMTD 1138.HK Time Not Supplied CIPHER PHARMACEUTICALS INC DND.TO Before Market Open City Developments Limited CDEVY.PK 10:30 pm ET CLEAN ENERGY FUELS CORP CLNE After Market Close CombiMatrix Corporation CBMX After Market Close Commonwealth Bank of Australia CBA.AX Time Not Supplied Companhia Paranaense de Energia (Copel) ELP Time Not Supplied COMPUTERSHARE LTD CPU.AX Time Not Supplied CORRIDOR RES INC CDH.TO After Market Close CORRIENTE RES INC ETQ Time Not Supplied Crew Gold Corporation CRUGF.PK Before Market Open Ctrip.com International, Ltd. CTRP After Market Close CVR ENERGY INC CVI After Market Close Deere & Company DE Time Not Supplied Deutz AG DEZ.F Time Not Supplied DOM DEVELOPMENT SA DMDVF.PK Time Not Supplied Dr Pepper Snapple Group, Inc. DPS Before Market Open DUVERNAY OIL CORP DDV.TO After Market Close East Asiatic Company Ltd A/S EAC.CO Time Not Supplied EASYHOME LTD EH.TO After Market Close ELIXIR GAMING TECHNOLOGIES INC EGT Before Market Open Elmos Semiconductor AG ELG.F Time Not Supplied ENDEAVOUR SILVER CORP EDR.TO 4:00 pm ET Entorian Technologies Inc. ENTN After Market Close ERG SpA ERG.MI Time Not Supplied Fletcher Building Limited FRCEF.PK Time Not Supplied Full House Resorts FLL After Market Close GALAXY NUTRITIONAL FOODS INC GXYF.OB Before Market Open GEOEYE INC GEOY Before Market Open Gildan Activewear GIL Before Market Open Gold Eagle Mines Ltd. GEA.TO Time Not Supplied Great Basin Gold GBN Before Market Open GronlandsBANKEN A/S GRLA.CO Time Not Supplied GVI Security Solutions Inc. GVSS.OB Time Not Supplied H. Lundbeck A/S LUN.CO Time Not Supplied Hang Lung Group Limited HNLGY.PK Time Not Supplied HAW PAR CORP LTD H02.SI Time Not Supplied HIGASHI NIPPON BANK LTD HGGFF.PK 03:00 am ET Holmen AB HOLMA.ST Time Not Supplied Hypo Real Estate Holdings AG HREHF.PK Time Not Supplied IGNIS ASA IGNIS.OL Before Market Open ING Canada IIC.TO Before Market Open ING Groep NV ING 01:30 am ET Interleukin Genetics ILI Time Not Supplied Interlink Electronics LINK.PK Time Not Supplied Interoil Corp. IOC After Market Close Interserve plc IRV.L Before Market Open inTEST Corporation INTT After Market Close Intrusion, Inc. INTZ.OB After Market Close K+S AG SDF.F Time Not Supplied KHD HUMBOLDT WEDAG INTL LTD KHD Before Market Open Korea Electric Power KEP Time Not Supplied Liz Claiborne LIZ Before Market Open LUNDIN PETROLEUM AB LNDNF.PK Time Not Supplied Macy's, Inc. M Before Market Open Magnetek MAG Before Market Open MDU COMMUNICATIONS INTL IN MDTV.OB Time Not Supplied MEDICAL FACILITIES CORP DR-UN.TO Before Market Open Memory Pharmaceuticals Corp. MEMY Before Market Open MIPS Technologies MIPS Time Not Supplied MLP AG MLP.F Time Not Supplied Mullen Group Income Fund Trust MTL-UN.TO 08:30 am ET Munters AB MTRS.ST 02:00 am ET NetApp, Inc. NTAP Time Not Supplied NetEase.com Inc NTES After Market Close Odfjell ASA ODF.OL Before Market Open Onex Corp. OCX.TO Time Not Supplied Orkla ASA ORK.OL 01:00 am ET PAETEC Holding Corp. PAET After Market Close Pan American Silver PAAS 05:00 am ET PARKWAY HOLDINGS P27.SI Time Not Supplied Peco II, Inc. PIII Before Market Open PEOPLE'S LIBERATION INC PPLB.OB After Market Close PEOPLES FOOD HLDGS PFDHF.PK Time Not Supplied PETRA FOODS LTD PEFDF.PK Time Not Supplied Photronics PLAB Before Market Open Power Medical Intervention, Inc. PMII After Market Close Proxim Wireless Corporation PRXM After Market Close PURE ENERGY SVCS LTD PSV.TO Before Market Open Quixote QUIX Time Not Supplied Relm Wireless Corporation RWC After Market Close Ruecker AG RUK.F Time Not Supplied SALMAR ASA SALM.OL 02:00 am ET SBS TRANSITLTD S61.SI After Market Close SILVERCORP METALS INC SVM.TO After Market Close SINOVAC BIOTECH LTD SVA Time Not Supplied SKIENS AKTIEMOLLE SKI.OL Before Market Open SMTC Corporation SMTX Time Not Supplied Specialty Fashion Group SFH.AX Time Not Supplied Spire SPIR Time Not Supplied Spreadtrum Communications SPRD After Market Close Stada Arzneimittel AG SAZ.F Time Not Supplied Storebrand ASA STB.OL 02:00 am ET Technology Solutions Company TSCC After Market Close TechTarget, Inc. TTGT After Market Close TECNOMEN OYJ TEOYF.PK Time Not Supplied Tegal Corporation TGAL After Market Close THIELERT AG HAMBURG THLRF.PK Time Not Supplied Track Data TRAC Time Not Supplied Tribune TXA Time Not Supplied Uranium One Inc. UUU.TO Before Market Open Uruguay Mineral Exploration, Inc. UME.V Time Not Supplied WEBZEN INC WZEN Time Not Supplied WESTERN CANADIAN COAL CORP WTN.TO After Market Close WESTERN GAS PARTNERS LP WES Time Not Supplied WNS Holdings Ltd. WNS Time Not Supplied WuXi PharmaTech Co., Ltd. WX After Market Close Xenonics Holdings, Inc. XNN Before Market Open Zurich Financial Services ZFSVF.PK Time Not Supplied

Thursday

Thursday offers two power packed reports, more than making up for the light overall data load. Weekly Initial Jobless Claims jumped last week to 455K, and has been running much hotter lately. Recent data seems to indicate that companies have done their best to limit worker hours, but have stretched that tool to the limit. This means more layoffs could be in store for the months ahead; this is because public companies are under shareholder pressure to maximize shareholder return, i.e. earnings.

The Consumer Price Index is due for release for the month of July. Inflation seems to be falling right into the hands of Ben Bernanke, with the whole economic scenario painting him a genius. We have not decided if he would be an accidental genius or pure one, but we have to admit, the situation seems to be playing out as he noted it should. The Headline CPI is seen rising 0.4%, with the core (ex-food and energy) expected to increase 0.2%. In June, prices rose 1.1% and 0.3%, respectively.

The Fed President of Minneapolis, Gary Stern, is set to address a group on the topic of "Repercussions from the Financial Shock." The EIA Natural Gas Report is due at the regular 10:30 report time. Your earnings schedule includes:

Earnings Announcements for Thursday, August 14 Company Symbol Time A.D.A.M., Inc. ADAM Before Market Open A.P. Pharma Inc. APPA Before Market Open ACCA NETWORKS CO LTD TOKYO ACNWF.PK 02:00 am ET ACCENTIA BIOPHARMACEUTICALS ABPI Time Not Supplied ACTION PRODS INTL INC APII Time Not Supplied ADVANCE RESIDENCE INVT CORP AVREF.PK 02:00 am ET Advanced Life Sciences Inc. ADLS Before Market Open Agilent Technologies Inc. A After Market Close Algonquin Power Income Fund APF-UN.TO Time Not Supplied Alseres Pharmaceuticals ALSE Before Market Open AmBev - Companhia de Bebidas Das Americas ABV Time Not Supplied ANATOLIA MINERALS DEV LTD ALIAF.PK Time Not Supplied Antares Pharma, Inc. AIS Before Market Open ARGYLE SECURITY INC ARGL.OB Before Market Open ART ADVANCED RESH TECH INC NEW ARA.TO After Market Close ASX LTD ASXFF.PK Time Not Supplied Autodesk, Inc. ADSK Time Not Supplied BANKERS PETROLEUM LTD BNK.TO Time Not Supplied Banks Com Inc BNX Time Not Supplied Beate Uhse USE.F Time Not Supplied Bechtle AG BC8.F Time Not Supplied Beru AG BZL.F Time Not Supplied Birner Dental Management Services BDMS Time Not Supplied BlackRock World Mining Trust PLC BRWM.L Before Market Open Blonder Tongue Laboratories BDR Time Not Supplied Boardwalk Equities BEI-UN.TO Time Not Supplied Briggs & Stratton Corporation BGG Before Market Open Broadridge Financial Solutions, Inc. BR Before Market Open Building Materials Holding Corporation BLG Time Not Supplied Cameco CCJ Before Market Open Canadian Hydro Developers, Inc. KHD.TO 1:00 pm ET CASTLE BRANDS INC ROX After Market Close CENTRAL PATTANA PUBLIC CO LTD CPPQF.PK Time Not Supplied CENTROTEC Sustainable AG CEV.F Time Not Supplied CENTROTHERM-PV CTN.F Time Not Supplied CHALLENGER DIVERSIFIED PPTY CLDUF.PK Time Not Supplied Constar, Inc. CNST Before Market Open COPA HOLDINGS SA CPA Before Market Open CORETRONICS CORP 5371.TWO Time Not Supplied Craft Brewers Alliance, Inc. HOOK Time Not Supplied CRUSADER ENERGY GROUP INC KRU Before Market Open CSE GLOBAL LTD 544.SI Time Not Supplied D Logistics AG LOI.F Time Not Supplied D+S europe AG DSJ.F Time Not Supplied Delphax Technologies DLPX.PK Before Market Open Derma Sciences DSCI.OB Before Market Open Deutsche Euroshop AG DEQ.F Time Not Supplied DeVry DV After Market Close DPAC Technologies Corp. DPAC.OB Time Not Supplied EASTERN PLATINUM LTD ELR.TO Before Market Open Elizabeth Arden RDEN Before Market Open Ener1, Inc. HEV Before Market Open Enerflex Systems Ltd. EFXFF.PK After Market Close ENERGEM RES INC ENM.TO Time Not Supplied ErSol Solar Energy AG ES6.F Time Not Supplied EUROPEAN GOLDFIELDS LTD EGU.TO Before Market Open EXXARO RES LTD EXXAF.PK Before Market Open FIRST PHILIPPINE HOLDINGS CORP FPHHF.PK Time Not Supplied FJA AG FJH.F Time Not Supplied Flowers Foods FLO Before Market Open Focus Enhancements FCSE After Market Close FUBON FINANCIAL HOLDING CO. LTD. 2881.TW Time Not Supplied Fundtech Corporation FNDT Before Market Open FUTURIS CORP FCL.AX Time Not Supplied GAFISA S A GFA After Market Close GeoPharma, Inc. GORX After Market Close GLOBAL SOURCES LIMITED GSOL Before Market Open Glowpoint, Inc. GLOW.OB After Market Close GOLAR LNG LTD BERMUDA GLNG Before Market Open GOLDEN MEDITECH COMPANY LTD GMDTF.PK Time Not Supplied Grande Cache Coal Corp. GCE.TO Time Not Supplied GROUPE AEROPLAN INC AER.TO Before Market Open H&R WASAG AG WAS.F Time Not Supplied Hanover Capital Mortgage Holdings HCM Time Not Supplied Harman International Industries HAR Time Not Supplied Hauppauge Digital HAUP Time Not Supplied Head NV HEDYY.PK Time Not Supplied HEARTWARE LTD HTW.AX Time Not Supplied Henry Bros. Electronics, Inc. HBE Time Not Supplied HIGH RIVER GOLD MINES LTD HRG.TO After Market Close Hochtief AG HOT.F Time Not Supplied HOTEL GRAND CENTRAL LTD HOGLF.PK Time Not Supplied HTL INTERNATIONAL HOLDINGS H64.SI Time Not Supplied I / O Magic Corporation IOMG.OB Time Not Supplied iLinc Communications ILC Before Market Open Inbev INB.BR 01:00 am ET InfoSonics Corporation IFON Time Not Supplied init innovation in traffic systems AG IXX.F Time Not Supplied Integralis AG AAGN.F Time Not Supplied INTER CARS SA ICRSF.PK Time Not Supplied INTERNATIONAL ROYALTY CORP ROY Time Not Supplied ISB CORPORATION ISBPF.PK Time Not Supplied IVERNIA INC IVW.TO Time Not Supplied IVG Holding AG IVGHF.PK Time Not Supplied J. M. Smucker Company SJM Before Market Open Jacada Ltd. JCDA Before Market Open JINSHAN GOLD MINES INC JIN.TO Time Not Supplied Jungheinrich AG JUN3.F Time Not Supplied KIT DIGITAL INC KITD.OB Before Market Open Koenig & Bauer AG SKB.F Time Not Supplied Kohls Corporation KSS After Market Close Kongsberg Gruppen ASA KOG.OL Time Not Supplied KONGZHONG CORP KONG After Market Close Landesbank Berlin Holding AG BEB2.F Time Not Supplied LEIGHTON HOLDINGS LTD LEI.AX Time Not Supplied Linamar Corp. LNR.TO Before Market Open Logica Plc LOG.L Before Market Open LPath, Inc. LPTN.OB Time Not Supplied MAXIM Power Corp. MXG.TO Time Not Supplied Mega Bloks Inc. M3H.BE Before Market Open Mega Brands Inc. MB.TO Before Market Open MINEFINDERS LTD MFN Time Not Supplied MINRAD INTL INC BUF Time Not Supplied MONDO TV SPA MTV.MI Time Not Supplied NANOSPHERE INC NSPH After Market Close NEW GOLD INC CDA NGD Time Not Supplied New Horizons Worldwide, Inc. NEWH.OB Time Not Supplied NEXTECH CORP TOKYO NXCCF.PK 02:00 am ET NIHON SEIMA CO LTD NHSCF.PK 02:00 am ET Nordstrom JWN After Market Close North American Energy Partners Inc. NOA Time Not Supplied Northern Dynasty Minerals Ltd. NAK After Market Close Northfield Labs NFLD Time Not Supplied Novozymes A/S NVZMF.PK Time Not Supplied Oplink Communications OPLK After Market Close Orix Corporation IX 02:30 am ET PET DRX CORPORATION VETS After Market Close Pharmacyclics PCYC After Market Close PMP LIMITED PMP.AX Time Not Supplied Pressure BioSciences PBIO Time Not Supplied PROTECTIVE PRODS AMER INC PPA.TO Time Not Supplied Psion plc PON.L 02:00 am ET Q FREE ASA QFR.OL Time Not Supplied QUADRA MINING LTD QUA.TO Before Market Open RAND LOGISTICS INC RLOG Before Market Open Red Robin Gourmet Burgers, Inc. RRGB Time Not Supplied Renegy Holdings, Inc. RNGY After Market Close REpower Systems AG RPW.F Time Not Supplied Rick's Cabaret Int'l, Inc RICK Time Not Supplied RIEBER & SON ASA RIE.OL 01:30 am ET Ringkjobing Bank A/S RIBA.CO Time Not Supplied ROYAL GOLD INC RGLD Before Market Open RSDB NV RSDB.AS 02:30 am ET SAI GLOBAL LIMITED SAI.AX Before Market Open Salzgitter AG SZG.F Time Not Supplied Sao Paulo Alpargatas ALPA3.SA After Market Close SAS AB SAS.ST 02:00 am ET SCANA INDUSTRIER ASA SCI.OL Time Not Supplied Secunet Security Networks AG YSN.F Time Not Supplied Selectica SLTC After Market Close SHIN CORPORATION SHNZY.PK Time Not Supplied Sixt AG SIX2.F Time Not Supplied Skjern Bank A/S SKJE.CO Time Not Supplied Sociedad Quimica y Minera de Chile SA SQM Time Not Supplied Solarworld AG SWV.F Time Not Supplied SRA HOLDINGS INC TOKYO SRHLF.PK 03:00 am ET ST GALLER KANTONALBANK SGKBF.PK Time Not Supplied STEEL & TUBE HLDGS STU.NZ Time Not Supplied STELLA JONES INC SJ.TO Before Market Open Stockland Trust Group SGP.AX Time Not Supplied STORM EXPLORATION INC SEO.TO Time Not Supplied STW COMMUNICATIONS GROUP LIMITED SGN.AX Time Not Supplied Sucampo Pharmaceuticals, Inc SCMP Time Not Supplied Syneron Medical Ltd. ELOS Before Market Open TAM S.A. TAM Time Not Supplied TANGANYIKA OIL COMPANY LTD TYK.V Time Not Supplied Telanetix, Inc. TNXI.OB Time Not Supplied TELECOM EGYPT TEGPF.PK Time Not Supplied TELECOMPUTING ASA TCO.OL Before Market Open THAI RUNG UNION CAR PUB CO LTD THUUF.PK Time Not Supplied The Estée Lauder Companies Inc. EL Before Market Open ThyssenKrupp AG TKA.F Time Not Supplied TONG REN TANG TECHNOLOGIES CO 8069.HK Time Not Supplied Totalbanken A/S TOTA.CO Time Not Supplied Tractebel Energia S.A. TBLEY.PK After Market Close TUI AG TUY.F Before Market Open U S-China Industrial Ex. CHDX Before Market Open UMS United Medical Sys Intl AG UMS.F Time Not Supplied Urban Outfitters URBN Before Market Open USIMINAS- Usinas Siderurgicas de Minas Gerais S/A USNZY.PK Before Market Open VanceInfo Technologies Inc. VIT Time Not Supplied VEIDEKKE VEI.OL Time Not Supplied Versatel AG VTW.F Time Not Supplied Vivacon AG VIA.F Time Not Supplied Vordingborg Bank A/S VORD.CO Time Not Supplied Wal-Mart Stores Inc. WMT Time Not Supplied WidePoint WYY Time Not Supplied WILMAR INTL LTD WLMIF.PK Time Not Supplied WMH WALTER MEIER HLDG AG STAEF WMHMF.PK Time Not Supplied Young Broadcasting YBTVA Before Market Open ZYGO ZIGO After Market Close

Friday

Chicago Fed President Charles Evans reaches an audience Friday, as he discusses the economic outlook. Before the market open, look for July's Industrial Production Report. Production is expected unchanged, while capacity utilization is seen slipping to 79.8%, from 79.9% in the prior month.

The Empire State Manufacturing Survey, which measures New York area manufacturing health, is expected by economists to read negative 2.8. In July, the metric read minus 4.9. As is clearly implied by the arithmetic sign, a negative number is bad news. Consumer Sentiment, via the University of Michigan/Reuters, is actually expected to improve slightly to 62.0, from 56.6 in July. Closing the week out, Treasury International Capital will measure the demand for U.S. assets.

Markets will be closed in India and South Korea, but earnings in the U.S. include the following:

Earnings Announcements for Friday, August 15 Company Symbol Time Abercrombie & Fitch Co. ANF Before Market Open AURORA ENERGY RES INC AXU.TO After Market Close AXCESS INTL INC AXSI.OB Time Not Supplied BIRKA LINE SQC.BE Time Not Supplied Capital Properties CPI Time Not Supplied CHINA-BIOTICS INC CHBT.OB Time Not Supplied Delta Apparel Inc. DLA Before Market Open Ekornes ASA EKO.OL Time Not Supplied F. VAN LANSCHOT BANKIERS NV LANS.AS 01:30 am ET GENTRY RES LTD GNY.TO Time Not Supplied Global Unichip Corp 3443.TW Time Not Supplied HUBWOO.COM HBW.PA Time Not Supplied INSTITUTE OF DRUG TECH AUSTRAL IDT.AX Time Not Supplied INTERNATIONAL STEM CELL CORP ISCO.OB Time Not Supplied JCPenney JCP Before Market Open KITRON ASA KIT.OL Time Not Supplied Level 8 Systems CICN.OB Time Not Supplied LPKF Laser & Electronics AG LPK.F 02:00 am ET Marine Harvest ASA MHG.OL Time Not Supplied Masterflex AG MZX.F Time Not Supplied MUEHLHAN AG M4N.F Time Not Supplied New York & Company Inc. NWY Before Market Open PhotoCure ASA PHO.OL Time Not Supplied PINNACLE GAS RESOURCES INC PINN Time Not Supplied PT BERLIAN LAJU TANKER TBK PBLJF.PK Time Not Supplied QGX LTD QGX.TO Time Not Supplied RegeneRx Biopharmaceuticals, Inc. RGN Time Not Supplied RIZAL COMMERCIAL BANKING CORP RZLCF.PK Time Not Supplied Schibsted ASA SCH.OL 01:00 am ET SEDONA Corporation SDNA.OB Time Not Supplied ShengdaTech Inc. SDTH Time Not Supplied TelePlus World, Corp TLPE.OB Time Not Supplied TRX INC TRXI Before Market Open Vestas Wind Systems A/S VWS.CO Time Not Supplied WSP Holdings Ltd WH Time Not Supplied ZAPF Creation AG ZPF.F Time Not Supplied

Wall Street Greek in no way endorses the validity of the data offered, and we will not be liable for any actions taken in reliance thereon. Please see our disclosure at the Wall Street Greek website.

Weekly Videos - Georgia Russia War Overshadows Olympics

I found myself getting emotional while putting together this week's video collage. You see, "The Greek" has been to the Republic of Georgia three times, including within the hour of Saakashvili's raid of Parliament, the unstoppable birth of true democracy in Georgia (the famed Rose Revolution).

Named "Rose" because of the beautiful and admirable lack of bloodshed, it surely was a dangerous time nonetheless. But, the hospitable and lovely locals tried to keep their guest at ease by telling me the gunfire I heard outside was fireworks. Being a hunter, I know the difference. I even looked down a machine gun barrel that was inches from my immobile head, so close I could have criticized the city border guard's cleaning job of his weapon. But, I felt very little fear (okay I was terrified at that specific moment); but more so, I felt the exaltation of the nation, so hopeful at that time that they might escape the post Soviet era poverty that had corroded their once cosmopolitan capital of Tbilisi.

I've been within the hotel Georgia's president now describes as destroyed, and I looked forward to skiing there someday. Heck, I even visited the town of Gori once, that place you see within these videos where the brother of a man killed by Russian bombs holds his brethren while pleading to God "Ara!" in Georgian, which means "No!". I love the Georgian people, and so that hurts me quite a bit. When I married a beautiful Georgian girl and she later separated from me, she could not divorce me from my love for Georgia.

It's ironic that Putin now bombs the town of Stalin's birth (Gori), and the only place where his statue still stands; it stands not because its residents viewed him just or right, but because they viewed him as their savior from Nazi fascism. He was their town's son first, and humanity's enemy second. Just as a mother will always love her son no matter what he does, Gori will always keep a place in its heart for Stalin... and that's admirable as well. I saw his modest childhood home, still preserved while not even guarded. I remember standing there and looking at the Soviet symbol of hammer and sickle, and asking my fiance' if she hated Ronald Reagan, my favorite patriot. She said no, "we loved him." God help Georgia, and I'll have more to say about the situation shortly.

Georgians and friends of Georgians are now gathering outside the United Nations seeking justice and help from the world to stop the massacre of their people. If you cannot see the videos below (74 in total), please visit the Wall Street Greek website to view them. I have to warn you that some of the video content is graphic, so view at your own risk.



As always, the views expressed within the videos may not agree with those of Wall Street Greek. Article interests AMEX: DIA, SPY, SDS, DOG, QLD, Nasdaq: QQQQ. Please see our disclosure at the Wall Street Greek website.

Let's Debate Housing - Is it Time to Buy?

Over the past week, Wall Street Greek has bombarded its readers with housing articles debating the topic of real estate, and whether we've finally reached the floor or not. Authors Kaminis and Douville have published the following articles:

• Blood in the Streets
• Has the Housing Market Bottomed?
• The Real Estate Cycle

At the same time, pundits like Kudlow and Cramer have been loudly pronouncing that the bottom has arrived. But, we want to know what YOU think. Please comment below this article, or if you are viewing this at a location away from the site, please visit Wall Street Greek and comment to this specific article, "Let's Debate Housing - Is it Time to Buy?"

View our Topic of Debate Archive

Article interests (AMEX: DIA, SPY, SDS, DOG, QLD, VNQ), (Nasdaq: QQQQ, VGSIX, AVTR), (NYSE: NYX, TOL, HOV, BZH, BAC, FRE, FNM, RHI, LEN, PHM, NVR, LEN, GFA, MDC, CTX, KBH, RYL, MTH, XIN, BHS, SPF, MHO, OHB, WCI). Please see our disclosure at the Wall Street Greek website.

The Real Estate Cycle

Wall Street Greek and Market Moving News cover all economic reports and financial markets daily. Please visit the sites' front pages to see current data and analysis.

By Michael Douville - Real Estate Market Analyst

I have seen this before... History repeats itself on a regular basis. This real estate downturn is different from the previous downturns, but the components are the same. Business managers and investors are charged with obtaining the highest return possible, and greater and greater risks are taken to obtain diminishing returns in a crowded marketplace. Investors recognize and exploit the opportunities the market presents, while later in the cycle speculators enter to "get rich quick," and the cycle ends badly.

(Article interests AMEX: VNQ, Nasdaq: VGSIX, NYSE: TOL, NYSE: HOV, NYSE: BZH, NYSE: BAC, NYSE: FRE, NYSE: FNM, NYSE: RHI, NYSE: LEN, NYSE: PHM, NYSE: NVR, NYSE: LEN, NYSE: GFA, NYSE: MDC, NYSE: CTX, NYSE: KBH, NYSE: RYL, NYSE: MTH, NYSE: XIN, NYSE: BHS, NYSE: SPF, NYSE: MHO, Nasdaq: AVTR, NYSE: OHB, NYSE: WCI, AMEX: DIA, AMEX: SPY, AMEX: SDS, AMEX: DOG, AMEX: QLD, Nasdaq: QQQQ and NYSE: NYX.)

This current downturn is bad, but not as bad as the 1979-1982 or 1989-1992 downturns the U.S. experienced. The response by the Federal Reserve, in dramatically lowering interest rates, averted a downturn in the Real Estate Industry in 2000-2001. It could have occurred then as a result of the busting of the dot-com bubble and the 9/11 tragedy. Although there was a slowdown in activity, we saw no price decline.

It has been 16 years since the end of the last Real Estate recession. A vast group of middle-aged managers, business owners, entrepreneurs, and homeowners have never seen the price of their home drop. This group of buyers has enjoyed a steady rise of 4-7% per year in the value of homes in the U.S. since 1992. The U.S. residential real estate market and the mortgages underwriting them have been considered the safest in the world. As a result, this current pricing decline comes as a shock to many. It is, however, very typical of a correction and cleansing of the market.

If there had been a published weekly chart (as we have now) during the 1989-1992 recession, the change in Residential and Commercial Real Estate prices across America would have also been negative. Back then, as is the case now, foreclosures were high; estimates indicate that over 400,000 properties became lender-owned. The excesses in the market were also being worked out at that time. The S&L crisis was underway and conventional lending was scarce.

In the years prior to the Resolution Trust Corporation (RTC), the savings and loan industry had been deregulated allowing greater participation in joint-ventures and greater flexibility to finance riskier, but more financially rewarding projects. Then, as now, bad real estate loans destroyed financial institutions. Between 1986 and 1996, the number of Savings & Loans in the U.S. declined from 3234 to 1645. The RTC was liquidating valuable properties at incredible prices: commercial and residential prices had to compete with aggressive asset managers, and so the average homeowner removed their properties from the market and waited. Those that had to sell, sold competitively. Just as today, those who purchased last lost the most money. Large builders went out of business: home construction dropped from 1.8 million units to under 1 million with the ensuing loss of high paying jobs. Banks and S&Ls went out of business, as did brokers, title and mortgage companies. There were huge losses... The cycle completed and restarted.

I believe the current cycle is ending. The downturn will not be pleasant, but I expect we are already in the process of healing. Secretary Paulson and Federal Reserve Chairman Bernanke have acted; liquidity is being restored to the financial markets and soon confidence will be restored as well. Slowly, the oversupply is being cleared. There has been an increase in sales every month since January and the pending sales for June showed an increase as well.

Builder traffic is slowly returning. The FHA/VA financing limits have been increased, and conventional conforming limits have been increased as of this July. The nationwide theme is affordability. As home pricing regresses to the mean, the huge price jumps of 2004-2007 are being negated. Thus, more and more buyers are able to purchase through traditional mortgages and underwriting criteria. The market is bumping along at the bottom, and the trend is for stabilizing home prices; however, the large price drops are fading.

The stronger markets should recover first, however, I expect we will still require another 12-18 months to complete the process. There will be additional pain; there will be additional problems. There will be arguments as to the fairness of the Housing Relief Bill, just as there were about the RTC. Still, capitalistic markets will operate on the capital and the liquidity provided by the "emergency measure or bailout."

What is an investor to do?

If history is a guide, fortunes will be made. Value is being restored to selective markets, and prime properties are available at discounted prices. Over the next 12 months, investors will be able to exploit the distressed properties and "special situations" that will appear in a universe of potential investment properties. Prime properties at great prices are available at values that will not be available again until the end of the next cycle; perhaps we will be lucky enough to enjoy another 16 years until the cycle repeats.

Full Disclosure: Michael has agreed to Wall Street Greek policy to not author articles about securities he personally owns or holds beneficial interest in. In the event of a special case, Michael will make full disclosure of ownership or beneficial interest. The work of contributors to Wall Street Greek is their own, and may not necessarily agree with the opinion of the site or its founder, and does not constitute financial advice. Please see our full disclosure at the site (Wall Street Greek).

Has the Housing Market Bottomed?

By "The Greek"

Investment gurus like Larry Kudlow, Jim Cramer and our own real estate guru, Michael Douville, have been pounding the table lately in predicting that the housing market has bottomed. With a slew of data released over the last couple weeks, including pending home sales, new and existing home sales, Q2 foreclosures and the S&P Case Shiller Price Index, and with the passage of the housing stimulus law, we may have enough information now to explore the possibility... so let's do so.

(Article interests AMEX: DIA, AMEX: SDS, AMEX: SPY, AMEX: DOG, AMEX: QLD, Nasdaq: QQQQ, NYSE: NYX)

Is it time or what? Some data points seem to be pointing toward stabilization, and we would expect most sector strategists to miss the turning point while caught up in the drama of the moment. So the situation seems to set up for a bottom. I, for one, would be looking for a turn, IF NOT FOR that softening economy that's still in play and the Iranian event that's becoming clearer and clearer to me.

It's not the immediate potential of Iran to run a couple hundred thousand gun-less patriots across the Iraqi boarder to incite a renewed civil war and set fire to Kuwait that scares me; nor is it the possibility of a missile or two striking critical Saudi assets (which would effectively turn off the two most important spigots and make Russia richer). What worries "The Greek" is war itself. Students of history are well aware of the surprises war often holds in store. Given that Iran has had so much time to prepare, there's all the more chance of that this time around. So, I say, if these were true-to-trend times, maybe we would bottom, but the times they are a changing.

Pending Home Sales

Pending home sales for the month of June were reported this morning, and the data supports a turn. But, it's easy to be drawn into the trap of calling out a sell or buy call when the asset recommended has moved dramatically. Conformists and contrarians, a group I've fit into more often than not, find many ears willing to listen when pricing is kicking, either on the downside or upside. Don't you remember how popular Cramer was back in the day when Crocs (Nasdaq: CROX) was flying? Did it matter to you that the shoe is probably the ugliest fashion accessory I've ever seen. When I called it a trend, did your blind eyes notice? Hey, I'm no expert on shoes though, to be fair to Jim, since I liked Heely's (Nasdaq: HLYS). I actually still believe company management could be doing a better job with that product, and I'm free to take over as CEO if the Board is listening.

The Pending Home Sales Index rose 5.3% in June, to a level of 89.0, while declining against the year ago period level of 101.4. The best news was that the increase was broad based: the South climbed 9.3%; the West rose 4.6%; the Northeast 3.4%; and the Midwest edged 1.3% higher. The National Association of Realtors Chief Economist Lawrence Yun made a good observation, stating that housing data has been vacillating within a tight range of late indicating a transitory period.

New Home Sales

New home sales were reported two Fridays ago. Running at an annual pace of 530,000 in June, sales surprised on the high side even as long-term rates rose some 30 basis points during the month. Economists had been looking for a pace of just 486,000. The June rate measured slightly short of the revised figure for May of 533K (adjusted up sharply from 499K reported initially). Though on its own the data seems inadequate to call a trend, especially in light of a still weakening broader economy, the new homes metric also seems to indicate a bottoming. If that's true, we'll have to answer another question... that being, how long do we bounce around the bottom before recovery ensues in earnest.

An interesting bit of data found in the Census Bureau's Report was that new home inventory decreased to 10.0 months, from 10.4 months in May. Looking back at April (10.3) and March (11.2), seems to further validate the claim that housing has bottomed, or at least found some footing.

What of Prices?

The new home sales price data, found within the same report, is not speaking to me though. Both median and average sales prices have moderated, and I would expect the average to come down harder than the median as higher end fluff contracts sharply towards intrinsic value. Still, I do not see the convergence that I would expect to indicate a turn to normalcy. This may be because more lower-end homes are selling at foreclosure pricing still. I would expect that when foreclosures ease, the average sales price should move more swiftly toward the median.

Clearly, we need to know a lot more about the history of these data points in order to really use them properly. We would ask the question, how close should the median and average prices be in a normal environment (feel free to comment if you know the answer). The Census Bureau's Report offers data back to 2006, but I bet we could dig up older information at the website. And older information is what's necessary, since we would have to go back a few years to find a normal housing market. For now, you should know that the average sales price for new homes in June was $298,600, down 2.6% from a year ago; the median sales price in June was $230,900, down 2.0% from $235,500. You can see the average moving more swiftly, but it's not a significant difference in my opinion.

Existing Home Sales

A couple weeks ago as well, Existing Home Sales for June were reported. The existing home sales market is currently nine times more significant than the new home market (down from about 5 and 6 times when housing was soaring). It's clearly a more important barometer due to its size. The most recent month's sales fell 2.6% from May, to an annual pace of 4.86 million. However, illustrating its size and greater stability, sales were down 15.5% from the year ago measurement, as compared to the 33.2% decline of the new home sales market. So it's clear by the change in size of the new home sales market and by the dramatic collapse of new home sales, that housing players like Hovnanian (NYSE: HOV), Lennar (NYSE: LEN) and Beazer (NYSE: BZH) are getting their just due these days, since it appears they did all they could to help the housing bubble along... including making financing more accessible to people who, as it turns out, didn't deserve it.

The National Association of Realtors indicated overall home for sale inventory increased in June (bad news that matters), to an 11.1 month's supply at the current sales pace, up from 10.8 months in May. The national existing home median sales price fell 6.1%, to $215,100 in June. The larger decrease than seen in new homes perhaps shows stubborn home owners are finally sucking it up, accepting the new realities of the market. It also likely reflects the impact of foreclosures.

Foreclosures

According to the NAR data, 1/3 of total sales are on foreclosed property and via short sales. It's not a surprise if you look at the chart to the right. We've now experienced eight straight quarters of foreclosure increase, and 95 out of 100 of the nation's largest metropolitan centers and 48 out of 50 states reported a year-over-year increase in the second quarter.

The large 121% increase over last year's rate, a higher jump than recent quarters, is likely the result of seasonal strength in 2007 that kept sequential foreclosures tame back then. That seasonal strength is all but dissipated now, thanks to a series of market factors. First, it's harder to buy property now, even at discounted pricing and of course also from desperate sellers who may still have equity in some instances. Those same sellers, or rather the ones without equity, often are better off not selling at a loss-- rather losing the home on loan default and walking away to rent another day; or as is now often the case, working out a deal with the bank to forgive the excess mortgage debt not repaid by the sale of the property.

Housing Stimulus Law

Congress worked up and the President signed, at the urging of his Treasury Secretary, a significant housing bill. We can thank Democratic Senator Dodd for taking the lead on this one, and the nation and Congress for rallying around it. It was well-received by the stock market as well, especially the shares of Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE), which both rallied on its passage and signing into law.

The new law should help in several ways. First it creates a regulator for the GSEs, with authority to sort of watch over them and make sure they don't put their hands in the cookie jar. It also raises loan limits in high cost areas. On the surface, raising the cap to $625K seems to aid the rich, but guess what, there are plenty of poor (or close enough) people in high cost portions of the country, like New York for instance, who could use this kind of help. I know that it's hard for you folks out in Oklahoma City to imagine, because you never really saw a housing bubble, however, there were some really crappy properties in the outer boroughs of the city here going for multiples of your house plus yard. The legislation also otherwise provides liquidity to the ownership and rental housing markets. Without getting into too much detail, the law expands affordable housing to under served markets.

Some 400K homeowners are expected to benefit from the "Hope for Homeowners Act of 2008," which will allow FHA borrowers in danger of losing their homes to foreclosure, to instead refinance at significant discount to the borrower. Rather than lose their home, and deal with all the related stresses life has to offer, these borrowers will share future appreciation with the FHA. This is clearly an option worthwhile to those in danger of losing their life's investment.

First time borrowers are being extended a one-time tax credit opportunity of 10% of the value, up to $7,500, repayable over 15 years, in effect creating an interest free loan. This is expected to draw a significant number of new buyers into the market, thus stabilizing inventory or reducing it. The Chief Economist of the NAR believes this will aid pricing to stabilize, even to rise by 3-6% in 2009.

"I suspect that author has an even more complicated mind than mine, because he finds conspiracy theories within conspiracy theory!"

In Conclusion

All this bodes well, and is certainly positive stimu