The President Sees Soft Landing

<p>MARKET OVERVIEW ~ 12:45 pm ET Thursday</p>
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<td nowrap="nowrap" width="20%" height="20"><a class="lk01" href="http://www.marketwatch.com/tools/quotes/quotes.asp?sid=1643"><font color="#0000cc" size="2">DJIA</font></a></td>
<td align="right" width="30%">13,500.15</td>
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<td nowrap="nowrap" align="right" width="15%"> <span class="t19"><font color="#ff0000" size="2">-157.71  </font></span></td>
<td nowrap="nowrap" align="right" width="15%"> <span class="t19"><font color="#ff0000" size="2">-1.15%</font></span></td>
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<td nowrap="nowrap" width="20%" height="20"><a class="lk01" href="http://www.marketwatch.com/tools/quotes/quotes.asp?sid=3291"><font color="#0000cc" size="2">Nasdaq</font></a></td>
<td align="right" width="30%">2,583.97</td>
<td align="center">  <img height="8" src="http://i.mktw.net/tools/marketsummary/images/nav/arrow-dn-sm.gif" width="10" alt="" /></td>
<td nowrap="nowrap" align="right" width="15%"> <span class="t19"><font color="#ff0000" size="2">-29.01  </font></span></td>
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<td nowrap="nowrap" width="20%" height="20"><a class="lk01" href="http://www.marketwatch.com/tools/quotes/quotes.asp?sid=3377"><font color="#0000cc" size="2">S&P 500</font></a></td>
<td align="right" width="30%">1,472.68</td>
<td align="center">  <img height="8" src="http://i.mktw.net/tools/marketsummary/images/nav/arrow-dn-sm.gif" width="10" alt="" /></td>
<td nowrap="nowrap" align="right" width="15%"> <span class="t19"><font color="#ff0000" size="2">-24.81  </font></span></td>
<td nowrap="nowrap" align="right" width="15%"> <span class="t19"><font color="#ff0000" size="2">-1.66%</font></span></td>
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<td nowrap="nowrap" width="20%" height="20"><a class="lk01" href="http://www.marketwatch.com/tools/quotes/quotes.asp?sid=45967"><font color="#0000cc" size="2">Dow Util</font></a></td>
<td align="right" width="30%">502.35</td>
<td align="center">  <img height="8" src="http://i.mktw.net/tools/marketsummary/images/nav/arrow-dn-sm.gif" width="10" alt="" /></td>
<td nowrap="nowrap" align="right" width="15%"> <span class="t19"><font color="#ff0000" size="2">-4.38  </font></span></td>
<td nowrap="nowrap" align="right" width="15%"> <span class="t19"><font color="#ff0000" size="2">-0.86%</font></span></td>
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<td nowrap="nowrap" width="20%" height="20"><a class="lk01" href="http://www.marketwatch.com/tools/quotes/quotes.asp?sid=3277"><font color="#0000cc" size="2">NYSE</font></a></td>
<td align="right" width="30%">9,556.87</td>
<td align="center">  <img height="8" src="http://i.mktw.net/tools/marketsummary/images/nav/arrow-dn-sm.gif" width="10" alt="" /></td>
<td nowrap="nowrap" align="right" width="15%"> <span class="t19"><font color="#ff0000" size="2">-189.33  </font></span></td>
<td nowrap="nowrap" align="right" width="15%"> <span class="t19"><font color="#ff0000" size="2">-1.94%</font></span></td>
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<td nowrap="nowrap" width="20%" height="20"><a class="lk01" href="http://www.marketwatch.com/tools/quotes/quotes.asp?sid=18343"><font color="#0000cc" size="2">AMEX</font></a></td>
<td align="right" width="30%">2,254.41</td>
<td align="center">  <img height="8" src="http://i.mktw.net/tools/marketsummary/images/nav/arrow-dn-sm.gif" width="10" alt="" /></td>
<td nowrap="nowrap" align="right" width="15%"> <span class="t19"><font color="#ff0000" size="2">-27.11  </font></span></td>
<td nowrap="nowrap" align="right" width="15%"> <span class="t19"><font color="#ff0000" size="2">-1.19%</font></span></td>
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<td nowrap="nowrap" width="20%" height="20"><a class="lk01" href="http://www.marketwatch.com/tools/quotes/quotes.asp?sid=4166"><font color="#0000cc" size="2">Russell 2000</font></a></td>
<td align="right" width="30%">790.60</td>
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<td nowrap="nowrap" align="right" width="15%"> <span class="t19"><font color="#ff0000" size="2">-5.06  </font></span></td>
<td nowrap="nowrap" align="right" width="15%"> <span class="t19"><font color="#ff0000" size="2">-0.64%</font></span></td>
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<td nowrap="nowrap" width="20%" height="20"><a class="lk01" href="http://www.marketwatch.com/tools/quotes/quotes.asp?sid=11520"><font color="#0000cc" size="2">Semcond</font></a></td>
<td align="right" width="30%">508.08</td>
<td align="center">  <img height="8" src="http://i.mktw.net/tools/marketsummary/images/nav/arrow-up-sm.gif" width="10" alt="" /></td>
<td nowrap="nowrap" align="right" width="15%"> <span class="t18"><font color="#009900" size="2">+2.59  </font></span></td>
<td nowrap="nowrap" align="right" width="15%"> <span class="t18"><font color="#009900" size="2">+0.51%</font></span></td>
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<td align="left" width="40%"><a class="lk01" href="http://www.marketwatch.com/tools/quotes/quotes.asp?sid=1349404"><font color="#0000cc" size="2">Gold future</font></a></td>
<td align="right" width="30%">674.60</td>
<td align="center"> <img height="8" src="http://i.mktw.net/tools/marketsummary/images/nav/arrow-dn-sm.gif%22" width="10" alt="" /></td>
<td nowrap="nowrap" align="right" width="15%"> <span class="t19"><font color="#ff0000" size="2">-11.70  </font></span></td>
<td nowrap="nowrap" align="right" width="15%"> <span class="t19"><font color="#ff0000" size="2">-1.70%</font></span></td>
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<td nowrap="nowrap" width="20%" height="20"><a class="lk01" href="http://www.marketwatch.com/tools/quotes/quotes.asp?sid=11421"><font color="#0000cc" size="2">30-Year Bond</font></a></td>
<td align="right" width="30%">5.01%</td>
<td align="center">  <img height="8" src="http://i.mktw.net/tools/marketsummary/images/nav/arrow-dn-sm.gif" width="10" alt="" /></td>
<td nowrap="nowrap" align="right" width="15%"> <span class="t19"><font color="#ff0000" size="2">-0.01   </font></span></td>
<td nowrap="nowrap" align="right" width="15%"> <span class="t19"><font color="#ff0000" size="2">-0.26%</font></span></td>
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<td nowrap="nowrap" width="20%" height="20"><a class="lk01" href="http://www.marketwatch.com/tools/quotes/quotes.asp?sid=11420"><font color="#0000cc" size="2">10-Year Bond</font></a></td>
<td align="right" width="30%">4.79%</td>
<td align="center">  <img height="8" src="http://i.mktw.net/tools/marketsummary/images/nav/arrow-dn-sm.gif" width="10" alt="" /></td>
<td nowrap="nowrap" align="right" width="15%"> <span class="t19"><font color="#ff0000" size="2">-0.07   </font></span></td>
<td nowrap="nowrap" align="right" width="15%"> <span class="t19"><font color="#ff0000" size="2">-1.48%</font></span></td>
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<p>Asian markets closed mixed with the Nikkei up 0.83 percent and the Hang Seng down 0.43 percent. Meanwhile, in Europe most indexes ended the day in red: London’s FTSE100 down nearly 2 percent, the CAC40 in Paris down 2.17 percent, and the DAX in Frankfurt down 2 percent, as well.</p>
<p>In the news, Pres. Bush played down turbulence in the market, saying Congress didn’t need to overract to credit market woes. Treasury Secretary Paulson echoed that sentiment, which was first nodded by Fed chief Ben Bernanke. So, that’s three people in Washington, saying, It’s not so bad….</p>
<p>In Europe,  BNP Paribas froze 3 investment funds as a result of U.S. subprime-related issues. And that has affected U.S. Treasuries with bond prices going lower.</p>
<p>Dubai’s investment wing, Istithmar has raised its bid for apparel designer, Barney’s. And Japan’s Fast Retailing has dropped out of the bidding war.</p>
<p>And London Stock Exchange’s shareholders have okayed the takeover of Borsa Italiana.</p>
<p>BAE, U.K.’s biggest defense firm, is reaping a harvest from re-quipping troops in Iraq. Its mine-resistant armored vehicles are outselling in the war-torn country.</p>
<p>And a report by the Asian Development Bank says, the widening inequality of wealth in Asia, particularly China and Nepal, are affecting the economic growth of these emerging markets. Besides that, it’s also a risk for street protests, and China is gona want to avoid those after the Tiannenman episode.</p>
<p>Also, the Indian government is reducing foreign cash inflows into the country to curb inflation and devaluate the rupee. Right now, the rupee stands at 40.52 against the dollar versus 45, close to a year ago.</p>
<p><a title="Prudent Investor" href="http://prudentinvestor.blogspot.com/"><font color="#92b211">Prudent Investor</font></a>:</p>
<h5> <em> ”Given the past divergences between the forecasts of president George W. Bush and the actual development of affairs investors should dive for cover. Bush today said he expects a that markets would work their way through safely and achieve a soft landing, the </em><a href="http://www.iht.com/articles/ap/2007/08/08/business/NA-FIN-US-Bush-Economy.php"><font color="#334477"><em>International Herald Tribune reports</em></font></a><em>. Wall Street stocks turned around on his remarks published just before the markets’ close and rallied to end more than 1% higher.”</em></h5>
<p><a title="Seeking Alpha" href="http://usmarket.seekingalpha.com/article/43945"><font color="#92b211">Seeking Alpha – Market Overview</font></a>:</p>
<p>“It is notable that the president does not see any problems with the lack of fiscal discipline that has roughly doubled US debt during his reign.</p>
<p>But maybe he has watched developments in Zimbabwe, where dictator Robert Mugabe recently was happy to see his budgetary problems solved by printing more money. Ahem, it did not work</p>

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