James Howard Kuntsler, author of The City in Mind: Notes on the Urban Condition, analyzes the Dubai Debacle for Whiskey & Gunpowder.

James Howard Kuntsler (Whiskey & Gunpowder):

“While Dubai is not big enough to set off financial repercussions outside the Middle East, the main fear is that investors could flee risky markets all at once in search of safer havens for their money.” — The NYT, Vikas Bajaj and Graham Bowley, reporting.

Apart from the stark self-contradiction in this quote from The New York Times, you have to love the fatuous ‘it’s all good’ self-assurance where global banking is concerned. No problemo y’all! A mere overdraft incident, a cash-flow hiccup… and yet “the main fear” [among whom?] is that investors [where and in what? Like, everywhere?] could flee risky markets all at once in search of safer havens for their money [WTF?]. Gosh, well, as

Renewed fears that the global economic recovery is faltering shook investors across Asia, sending stock markets in the region sharply lower Thursday.  The Nikkei fell below the 10,000 mark for the first time in three weeks.  Dollar and yen rose as hedge funds sold off risky positions and traders trimmed their appetite for risk. 

The Nikkei 225 stock average fell 1.8% to 9,891.10 and Hong Kong’s Hang Seng index plunged 2.3% to 21,264.99 points. In Mainland China, the Shanghai Composite Index dropped 2.3% to close at 2,960.47.  All other major indices in the region ended in the red.   

On Wednesday, US stocks tumbled after a weaker-than-anticipated new home sales report aggravated concerns that the seven-month old rally has gone ahead of any economic recovery.  To add to the bearish sentiment Goldman Sachs lowered its projection for the third-quarter gross domestic product.  The government's report on third-quarter GDP is due

U.S. stocks rose for a fifth day on Thursday as a larger than expected drop in U.S. jobless claims and an upbeat forecast from consumer goods maker Procter & Gamble added to enthusiasm that the economy is on track for a rebound.  Energy shares advanced, helped by rising forecasts for oil demand.  Nevertheless, given September’s weak track record, market participants have been bracing for a pullback.

On Thursday, the Dow Jones industrial average rose 80.26 points, or 0.8%, to 9,627.48, its highest close since October 6.  The broader S&P 500 index advanced 10.77 points, or 1%, to 1,044.14, its first five-day climb since November.  The Nasdaq composite index rose 23.63 points, or 1.2%, to 2,084.02.  With traders eschewing safe havens, yield on the benchmark 10-year Treasury note fell to 3.35%. The yield on the 30-year notes declined to 4.20%.

As the holiday-shortened week comes to an end today, investors

A government report that suggested the economy shrank at a slower pace than feared failed to push stocks higher on a lackluster Friday but indexes managed to end the month on a solid footing, spurred by hopes that the recession is losing its force.  The big July saw the Dow Jones industrial average surging 725 points or 8.6% - its best July since 1989, and the broader S&P 500 index gaining 7.4% for its best July run since 1988.  The S&P500 has now recorded its most remarkable five-month performance since 1938, holding 46% above its 12-year low set in early March.

This morning’s US stock futures indicate a sharply higher opening, helped by positive signs emanating from overseas markets.  Today, Chinese stocks hit a 14-month high after data showed manufacturing activity is expanding in the country.  The Shanghai Composite Index rose 50.53 points, or 1.5%, to close at 3,462.59

(Gold is the August contract on the NY Mercantile Exchange. Silver, copper and oil are the September contracts.)

NEW YORK - Wall Street ended modestly lower on Wednesday as the market consolidated recent gains, largely shrugging off a plunge in Chinese shares and weaker-than-expected data from the US factory sector. The Dow Jones Industrial Average shed 26 points, 0.29 per cent, to 9070.72. The Nasdaq composite dipped 7.75 points, 0.39 per cent, to 1967.76 and the broad-market Standard & Poor’s 500 drifted down 4.47 points, or 0.46 per cent, to a close of 975.15.

LONDON - European stock markets, resisting a slide on Wall Street, advanced, drawing strength from corporate earnings results. The London FTSE 100 index gained 18.69, or 0.41 per cent, to close at 4547.53 points.

FRANKFURT - Pharmaceutical group Bayer surged 5.44 per cent to 42.23 euros after reporting results that beat expectations. Despite a third

(Gold is the August contract on the NY Mercantile Exchange. Silver, copper and oil are the September contracts.)

NEW YORK - US stocks finished narrowly mixed on Tuesday as the market’s strong momentum from a hefty two-week rally helped overcome an early wave of profit-taking. Markets reacted to a weaker-than-expected survey on consumer confidence that was mitigated by positive news from the housing sector and generally strong corporate news. The Dow Jones Industrial Average drifted down 11.79 points, or 0.13 per cent, to settle at 9096.72, retreating modestly from a two-week surge of nearly 12 per cent. The Nasdaq composite meanwhile rose 7.62 points, 0.39 per cent, to 1975.51 in a late recovery, while the broad-market Standard & Poor’s 500 index dipped 2.56 points, 0.26 per cent, to settle at 979.62.

LONDON - European stock markets closed with losses, with sentiment dented by profit-taking and a disappointing reading

MORNING MARKET REPORT

Gold is the August contract on the NY Mercantile Exchange. Silver, copper and oil are the September contracts.)

NEW YORK - Wall Street shares drifted to a mostly higher close on Friday as investors mulled disappointing earnings reports. The Dow Jones Industrial Average rose 23.95 points, 0.26 per cent, to finish at 9093.24. The technology-heavy Nasdaq composite dropped 7.64 points, or 0.39 per cent, to 1965.96, snapping a 12-session winning streak. The broad-market Standard & Poor’s 500 index added 2.97 points, or 0.3 per cent, to close at 979.26.

LONDON - European stock exchanges closed narrowly mixed on Friday as a near two-week rally ran into profit-taking ahead of the weekend. In London, the FTSE 100 index of leading shares was up 16.81 points, or 0.4 per cent, at 4576.61 points.

FRANKFURT - The Dax fell 17.92 points, or 0.34 per cent,

Global stock markets continued their slide Monday as waning optimism about a stronger economic turnaround continued to weigh on sentiments.  Investors remained in risk-averse mode and sold stocks across the board.  In Asia, the Nikkei 225 stock average recorded its ninth straight loss, tumbling 236.95 points or 2.6% to 9,050.33.  The Hang Seng Index in Hong Kong plunged 453.79 points, or 2.6%, to 17,254.63 and South Korea’s Kospi shed 50 points, or 3.5%, to 1,378.12.  

On Friday, US stocks registered their fourth-straight week of declines as a dip in consumer confidence and Chevron’s (NYSE:CVX) bleak profit outlook highlighted concerns about the health of the global economy.  The Dow Jones Industrial Average lost 37 points, or 0.4%. Tech-heavy Nasdaq rose 3 points or 0.2% and the S&P 500 index eased 3 points or 0.4%.  Volume remained light with only 922 million shares trading and advancing issues ahead of decliners by

Asian stocks declined Monday as cautious investors evaluated whether the three-moth old rally is due for a pause amid conflicting sings of an economic recovery.  European stocks were also down following the losses in Asia.  Earlier, Asian benchmarks declined with Japan's Nikkei 225 stock average losing 1% to 10,039.67 and the Hang Seng Index in Hong Kong declining more than 2%.  South Korea's Kospi was off 1.1%. However, the Shanghai Composite index in Mainland China bucked the trend, rising 1.7%. 

U.S. stock futures pointed to a lower open on Wall Street with Dow futures down 94 points, or 1.1%, at 8,696.

Friday saw a quiet trading week coming to a halt, in which the Dow Jones Industrial Average joined the S&P and Nasdaq in positive territory for the year.  The Dow, which has risen in 12 of the last 14 weeks, gained 28 points, or 0.3%, to close

Asian stock markets recorded sharp gains Wednesday, helped by a jump in commodity prices and hopes that the U.S. banking system is showing sings of buoyancy.  In Tokyo, the Nikkei 225 stock average jumped 2.1% to 9,991.49 and the Hang Seng index in Hong Kong surged more than 4% to close at 18,785.66.  Japanese investors shrugged off a report that suggested core machinery orders, a closely watched indicator of corporate capital spending, plunged to a 22-year low in April. South Korea's benchmark Kospi jumped 3.1% and India's Sensex added 2.3%.   

Yesterday, Wall Street responded with a yawn to Obama Administration's announcement that 10 of the largest banks could repay $68 billion of government bailout cash.  Although Treasury Secretary Geithner, appearing before the Senate Appropriations Committee, noted the repayment of the bailout money was a sign of "financial repair," stocks swung back and forth in a narrow range, signaling