PKey Newsbr•nbsp;U.K. Rescue Fails to Spur Loans (WSJ)br•nbsp;Japan's Central Bank Weighs Measures to Curb Stronger Yen (WSJ)/P PKey Reports Due (WSJ):br7:00 a.m. ICSC Chain Store Sales Index For Jan 3: Previous: -0.5%. br10:00 a.m. Nov Construction Spending: Expected: -1.2%. Previous: -1.2%. /P PbrQuotable br“How charming is divine philosophy!brNot harsh and crabbèd, as dull fools suppose,brBut musical as is Apollo’s lute,brAnd a perpetual feast of nectared sweets,brWhere no crude surfeit reigns.”/P P nbsp; John Milton/P PFX Trading – We’re Bullish on the US Dollar Today ...nbsp; and Tomorrow!/P PDo you remember what economists used to tell us about the global economy? If not, let me remind you.nbsp; /P PI remember the mantra-like chant from very clearly: There are major imbalances across the global economy.nbsp; Some countries save too much, others borrow and spend too much.nbsp; /P POf course the US seemed be the one to blame no matter the shape or weaknesses elsewhere.nbsp; The gut wrenching credit crunch of ...

Mid-East Violence Drives Crude Higher; IndyMac to be Sold by Year’s end; Retailers in for Tough Start to 2009; Six-month Treasury Rate Hits Record Low; Commercial Banks Report $6 Billion in 3Q Revenue

Crude prices rose back above $40 a barrel yesterday (Monday), as Israel and Palestinian forces exchanged fire and casualties mounted in the region. Light, sweet crude for February delivery rose $2.31 cents to settle at $40.02 a barrel on the New York Mercantile Exchange. A group of investment firms that includes J.C. Flowers & Co., Dune Capital Management, and Paulson & Co., is set to purchase IndyMac Bank, one of the nation’s largest failed banks, from the Federal Deposit Insurance Corp. (FDIC) according to CNNMoney. Neither the FDIC nor any of ...

Paulson heads back to congress…  BOJ cuts rates to below the US…  China to continue increasing the value of the Renminbi… And Now… Today’s Pfennig! Good day… The currencies took a breather overnight as the dollar bounced back up. When we left last night, the Euro was still holding above $1.42, but the single unit dropped 3 cents overnight and is now hovering around the $1.39 level. This move back down was to be expected, and serves as an excellent opportunity for investors who were afraid they had missed out on getting back into the currency market.

I have searched the news wires this morning and can’t find any good reasons for the dollar’s turn around other than it had simply gone too far too fast. Mike Meyer and I were talking about this yesterday morning, as we were looking at the trading screens in amazement. The dollar’s move down over

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Mentioned in this post are General Motors Corporation (GM), PNC (PNC) and National City (NCC).The Treasury Secretary stated today that as a result of the decision to provide $17.4 billion to General Motors Corporation (GM) and Chrysler LLC, the Treasury has effectively allocated the first $350 billion from the TARP funds.It is not very clear whether the current administration will ask Congress to release the remaining half of the TARP funds. While Secretary Paulson stated that he will discuss that process with the congressional leadership and the President-elect's transition team in the near future, there were reports from the White House that it would not necessarily ask Congress to release the second half of the $700 billion, implying that they would leave the decision to the incoming administration.  Even if the current administration makes a request to the Congress ...

The Bush administration Friday dropped its opposition to using the $700 billion bank bailout fund to provide financing for U.S. automakers after the Senate balked at approving $14 billion emergency loans. “Because Congress failed to act, we will stand ready to prevent an imminent failure until Congress reconvenes and acts to address the long-term viability of the industry,” Treasury spokeswoman Brookly McLaughlin said in a statement. No specific announcement of a bailout was made, as there is still time before General Motors Corp. (GM) and Chrysler LLC - the companies in most at risk of foreclosure - run out of cash. However, the White House made it clear that the government is ready to backstop the companies by using a portion of the funds allocated to its Troubled Asset Relief Program (TARP). “The current weakened state of the economy is ...

I got another small surprise Monday night, browsing the major indexes.

As you can see from the chart above, the S&P 500 has broken the accelerated downtrend it’s been in since September.

Now, it’s true that this chart is only current as of Monday’s close. I’m writing you these words early Tuesday morning before hopping on a plane.

Perhaps while I’m up in the air at 35,000 feet, Treasury Secretary Paulson will say or do something alarmingly idiotic and help stocks return to form.

But if not, just imagine! The very idea that stocks don’t always go down and down… who’d have thunk it?

Whisper it Quietly

Okay, that was a wee bit of sarcasm (in case you hadn’t noticed).

If I felt like really pushing my luck though – being

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A Textbook Example Of Gold Manipulation By Patrick A. Heller, Market Update December 02, 2008

Those who really understand what happens in the gold market have long observed the following pattern:

If there is some significantly poor economic or financial news that will be released during the day, invariably there is an unexpected decline in the price of gold either before or at the same time that the news is released to the public.

Many times the assault to drive down the price of gold begins in the London market at 3:00 AM Eastern Time zone, when the traders acting on behalf of the US government begin their day. If the news isn’t quite so bad, the manipulation may hold off until after the US Comex opens.

That this pattern occurs so consistently is no longer a surprise. When the US government is preparing to release an economic report such as unemployment rates, inflation

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Bank of American Corp. (BAC), which is getting $15 billion from the U.S. government as part of the Treasury Department’s $250 billion “recapitalization” effort, is doubling its stake in state-owned China Construction Bank Corp., and will hold a 20% stake worth $24 billion in China’s second-largest lender when that deal is finalized.

PNC Financial Services Group Inc. (PNC), which will get $7.7 billion from Treasury’s Troubled Assets Relief Program (TARP), is using that cash infusion to help finance its $5.2 billion buyout of embattled National City Corp. (NCC).

And U.S. Bancorp (USB), which received a $6.6 billion capital infusion from that same rescue package, has acquired two California lenders – Downey Savings & Loan Association, F.A., a subsidiary of Downey Financial Corp. (DSL), and PFF Bank & Trust, a subsidiary of PFF Bancorp Inc. (OTC: PFFB). U.S. Bank

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Currencies rally then fall back…  Rate slashers!  Following Japan? Let’s hope not!  Canada’s woes mount… And Now… Today’s Pfennig! Good day… And a Happy Friday to one and all! A Fantastico Friday! A Jobs Jamboree Friday! Anything else, Chuck? No, I don’t think so, I’ll stop there… It’s all about the Jobs Jamboree today. It’s all about finding out just how badly the rot on the labor vine has gotten… The Weekly Initial Jobless Claims, yesterday, remained above 500K per week, which doesn’t bode well for next month’s data… But first… November’s Jobs Jamboree on the docket!

The “experts” have forecast a -335K drop in jobs for November… But, your old Pfennig writer believes that this forecast is low. I think it will be closer to -375K… The reason I say that is the employment piece of the ISM report that printed the other day… The employment index of that report

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Wall Street Crash of 1929Wall Street Crash of 1929 | 1 Hour VideoQuick Link: Hedge Fund VideosHere is an hour long video no the Wall Street Crash of 1929. If you are viewing this post through my daily hedge fund newsletter please click here now to view this video on my website. Hat tip to Earnings Breakout for first finding it.Related to Wall Street Crash of 1929 | 1 Hour VideoHedge Fund Tracker Tool Millennium PartnersMitsui & Co.Moore Capital Management, LPOch Ziff Capital Management GroupOracle Evolution Oracle Services | Spiro Germenis...