Postal Service loses more than $1 billion in third quarter
August 7, 2008
The Postal Service had a net loss of more than a billion dollars in the third quarter of the fiscal year, the agency said Wednesday.
For the quarter ended June 30, the loss was $1.1 billion, which officials blamed on reduced mail volume in the slowed economy, coupled with rapidly rising transport costs because of high fuel prices.
Total mail volume was 48.5 billion pieces, a 5.5 percent drop from the same period last year.
Postage rates went up a penny to the current 42-cent price in May. Another increase is expected next May, with the amount to be announced in February. Any increase is limited to the rate of inflation.
August 7, 2008
The Postal Service had a net loss of more than a billion dollars in the third quarter of the fiscal year, the agency said Wednesday.
For the quarter ended June 30, the loss was $1.1 billion, which officials blamed on reduced mail volume in the slowed economy, coupled with rapidly rising transport costs because of high fuel prices.
Total mail volume was 48.5 billion pieces, a 5.5 percent drop from the same period last year.
Postage rates went up a penny to the current 42-cent price in May. Another increase is expected next May, with the amount to be announced in February. Any increase is limited to the rate of inflation.
sorry but this really amuzes me a conversation about miners over at prudent bear
we'll see if gold holds up regardless of deflation as long as there are bank fail worries
judgement time around 850 close....the floor since the peak
dipping below 200 DMA but did that back in 2006 during its consolidation period
either way i'm in my physical around 400 so no worries
-----------------------------------
The latest PM smack down is insane! carolinarn7
NEW 8/7/2008 10:44:32 AM
Post Your Reply
Absolute Lithium territory. Incredible.
RE: The latest PM smack down is insane! valueconvert1
NEW 8/7/2008 10:47:42 AM
Post Your Reply
Sold my SWC at $13 and now its $6 and change. Yikes. Any thoughts what it is worth?
RE: a lot of gold bugs swiped out on this fall peteybear
NEW 8/7/2008 10:50:57 AM
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i'm in some gg and down around $1 and will avg in but it looks horrid
RE: it's the latest attempt by Rothschilds and the el dorado
NEW 8/7/2008 10:54:57 AM
Post Your Reply
rest of the illuminati to
shake the weak hands
RE: So is the dollar rally gjohnsit
NEW 8/7/2008 10:55:19 AM
Post Your Reply
The two are connected. Our job is to figure out why it is happening.
My guess is that this is the deflation that the deflationists have been warning us about. Notice how neither stocks nor treasuries have been very impressive in the past month, eventhough the dollar has had a good month.
My guess is that we have collapsing debts, thus we are seeing a run to cash. Not treasuries, cash.
If my guess is right, what we are seeing is one element of the deflationist argument coming true, but the larger gold bug picture is the dominant feature.
The deflationist argument: a rush to cash
The gold bug argument: a collapse in all asset values, including high-grade debt instruments. That leaves only things with intrinsic value worth holding.
RE: Iran GJJ
NEW 8/7/2008 11:01:33 AM
Post Your Reply
I think they are driving gold down because they will be attacking Iran real soon. They are trying to minimize the upside to gold that will be the result.
Of course, if Iran sinks a carrier or two, the rush out of dollars will be mindboggling.
It is all a house of cards. It is just a matter of time before it collapses.
RE: So is the dollar rally behrboy
NEW 8/7/2008 11:39:43 AM
Post Your Reply
This post sums up so well the dilemma that faces pm investors now.
All this mega debt (Mega debt=synthetic short) creates a huge demand for $ to service the debt and pay the taxes. Will this be the mother of all short covering rallies in the dollar? But does gold finally become the premier "currency"?
Thought I had it all figured out, pm's will bury paper money, but have recently had to rethink how this all shakes out. At this point I am more sure of the stock market going down, than of pm's rise.
RE: Euro down = gold down... PulpLogger
NEW 8/7/2008 11:41:31 AM
Post Your Reply
Perhaps big announcement coming that would weaken the Euro? Spain or Italy in big financial trouble?
RE: Anyone who understands the fundamental Oldebare
NEW 8/7/2008 11:30:30 AM
Post Your Reply
reasons for owning gold would understand that this run up in the price of gold was not based on any fundamentals.
Gold has historically been bought as a hedge against (REAL) inflation but we've only had phantom inflation caused by record high oil prices that some journalists and analysts (that obviously weren't around during the real high inflation times of the 1970s) have been flapping their gums about.
When this unwinding of the Gold to $3000 dream begins to unwind, it's not only going to be breathtaking but very costly to gold bugs that haven't learned the lessons of history.
RE: you ever think we might be deflating? mannfm11
NEW 8/7/2008 11:38:49 AM
Post Your Reply
Maybe they need to raise cash, not gold?
we'll see if gold holds up regardless of deflation as long as there are bank fail worries
judgement time around 850 close....the floor since the peak
dipping below 200 DMA but did that back in 2006 during its consolidation period
either way i'm in my physical around 400 so no worries
-----------------------------------
The latest PM smack down is insane! carolinarn7
NEW 8/7/2008 10:44:32 AM
Post Your Reply
Absolute Lithium territory. Incredible.
RE: The latest PM smack down is insane! valueconvert1
NEW 8/7/2008 10:47:42 AM
Post Your Reply
Sold my SWC at $13 and now its $6 and change. Yikes. Any thoughts what it is worth?
RE: a lot of gold bugs swiped out on this fall peteybear
NEW 8/7/2008 10:50:57 AM
Post Your Reply
i'm in some gg and down around $1 and will avg in but it looks horrid
RE: it's the latest attempt by Rothschilds and the el dorado
NEW 8/7/2008 10:54:57 AM
Post Your Reply
rest of the illuminati to
shake the weak hands
RE: So is the dollar rally gjohnsit
NEW 8/7/2008 10:55:19 AM
Post Your Reply
The two are connected. Our job is to figure out why it is happening.
My guess is that this is the deflation that the deflationists have been warning us about. Notice how neither stocks nor treasuries have been very impressive in the past month, eventhough the dollar has had a good month.
My guess is that we have collapsing debts, thus we are seeing a run to cash. Not treasuries, cash.
If my guess is right, what we are seeing is one element of the deflationist argument coming true, but the larger gold bug picture is the dominant feature.
The deflationist argument: a rush to cash
The gold bug argument: a collapse in all asset values, including high-grade debt instruments. That leaves only things with intrinsic value worth holding.
RE: Iran GJJ
NEW 8/7/2008 11:01:33 AM
Post Your Reply
I think they are driving gold down because they will be attacking Iran real soon. They are trying to minimize the upside to gold that will be the result.
Of course, if Iran sinks a carrier or two, the rush out of dollars will be mindboggling.
It is all a house of cards. It is just a matter of time before it collapses.
RE: So is the dollar rally behrboy
NEW 8/7/2008 11:39:43 AM
Post Your Reply
This post sums up so well the dilemma that faces pm investors now.
All this mega debt (Mega debt=synthetic short) creates a huge demand for $ to service the debt and pay the taxes. Will this be the mother of all short covering rallies in the dollar? But does gold finally become the premier "currency"?
Thought I had it all figured out, pm's will bury paper money, but have recently had to rethink how this all shakes out. At this point I am more sure of the stock market going down, than of pm's rise.
RE: Euro down = gold down... PulpLogger
NEW 8/7/2008 11:41:31 AM
Post Your Reply
Perhaps big announcement coming that would weaken the Euro? Spain or Italy in big financial trouble?
RE: Anyone who understands the fundamental Oldebare
NEW 8/7/2008 11:30:30 AM
Post Your Reply
reasons for owning gold would understand that this run up in the price of gold was not based on any fundamentals.
Gold has historically been bought as a hedge against (REAL) inflation but we've only had phantom inflation caused by record high oil prices that some journalists and analysts (that obviously weren't around during the real high inflation times of the 1970s) have been flapping their gums about.
When this unwinding of the Gold to $3000 dream begins to unwind, it's not only going to be breathtaking but very costly to gold bugs that haven't learned the lessons of history.
RE: you ever think we might be deflating? mannfm11
NEW 8/7/2008 11:38:49 AM
Post Your Reply
Maybe they need to raise cash, not gold?
mfn holding up pretty well today with the PM carnage
trying to cling to 9
still waiting
if you really want PMs in this environment go with producers not explorers....and the buy time might be near.....
and falling commodity in other areas could really help the producers if gold prices hold up as their production costs go down
dollars and financing hard to come by these days due to the bank troubles
i still think gold demand side is driven by financial gloom and doom moreso than all the other noise....we shall see
trying to cling to 9
still waiting
if you really want PMs in this environment go with producers not explorers....and the buy time might be near.....
and falling commodity in other areas could really help the producers if gold prices hold up as their production costs go down
dollars and financing hard to come by these days due to the bank troubles
i still think gold demand side is driven by financial gloom and doom moreso than all the other noise....we shall see
up im even, it was a pure hedge play in that sense, so i have to abide by my trade...hell no the next bear leg has just begun or so it seems
nice entries my man!!
plus i'm break even now
one thing you can be sure of is tizgloom is usually too early on the short side in this environment he's scared to miss the down drafts as he knows where its going longer term.....
his bottom calls will be better though
every bottom to date has been vix spike to the 30s.....
21.29 vix....bottom projection ~35 vix.....
unless the markets crash seems like that pattern should hold
nice entries my man!!
plus i'm break even now
one thing you can be sure of is tizgloom is usually too early on the short side in this environment he's scared to miss the down drafts as he knows where its going longer term.....
his bottom calls will be better though
every bottom to date has been vix spike to the 30s.....
21.29 vix....bottom projection ~35 vix.....
unless the markets crash seems like that pattern should hold
more vegas gloom and doom
commercial RE bust here we come
------------------------
Aug. 7 (Bloomberg) -- Deutsche Bank AG will foreclose on the $3.5 billion Cosmopolitan Resort & Casino in Las Vegas after developer Ian Bruce Eichner defaulted on a $760 million loan, two people briefed on the situation said.
Germany's biggest bank weighed selling the complex after Eichner's January default, said the people, who asked not to be named because the discussions are private. Deutsche Bank will take over the Cosmopolitan and is talking with companies including MGM Mirage and Hilton Hotels Corp. to help run its 80,000-square-foot casino, the people said.
Sagging commercial real estate prices, weighed down by record subprime defaults, forced banks to hold projects until prices rise or sell at a loss. The Frankfurt-based bank would oversee an 8.5-acre development with two high-rise towers, three wedding chapels, a sandy beach overlooking the Las Vegas Strip and a deck featuring ''European-style bathing.''
''Deutsche Bank wants to be engaged in banking, not running a casino,'' said Matthew Clark, a London-based analyst at Keefe, Bruyette & Woods. ''They've had to decide between selling the Cosmopolitan into a bad market or holding on for better times.''
Deutsche Bank spokesman Scott Helfman declined to comment, as did Yvette Monet, a spokeswoman for MGM Mirage, who cited company policy. Hilton's Robert Allegrini also couldn't comment.
Casino Revenue Slides
Las Vegas, the heart of the U.S. gaming industry, is reeling from sluggish economic growth and soaring food and fuel costs. The city's casino revenue slid 16 percent in May, the fifth straight monthly decline, according to the Nevada Gaming Commission.
A partnership with another company may allow Deutsche Bank to avoid the ''extremely thorough'' process of obtaining a Nevada gaming license, said Anthony Cabot, who heads gaming law at Lewis and Roca LLP in Las Vegas. Such a move could also erode Deutsche Bank's revenue from the casino.
''One option is to bring in a licensed operator to effectively lease the entire casino area,'' he said.
MGM owns the Bellagio casino and is building the $11.2 billion CityCenter, which surround the Cosmopolitan on the Strip, making MGM a potential candidate to operate the Cosmopolitan, said Stamford, Connecticut-based Robert LaFleur, who covers gaming companies at Susquehanna Financial Group in.
Full Plate
Even so, ''MGM has its plate full building CityCenter and I'm not sure about their appetite for new projects,'' LaFleur said. MGM, the world's second-largest casino company behind privately held Harrah's Entertainment Inc., said this week that banks agreed to lend half of the $3 billion it's seeking to build CityCenter.
Hilton, the second-biggest U.S. hotel chain after Marriott International Inc., was bought last year for $20 billion by Blackstone Group LP, the world's largest private-equity firm.
Blackstone, based in New York, told investors on an Aug. 6 conference call to discuss its second-quarter results that Hilton was performing ahead of projections.
Deutsche Bank had 14.7 billion euros, currently valued at $22.6 billion, of commercial real estate loans at the end of June, company reports show. That amount was 10.7 billion euros after taking into account risk reduction measures including hedges, the bank said. It wrote down the investments by 543 million euros in the second quarter, or 309 million euros when hedges are included.
Earlier this year, Deutsche Bank took control of seven New York office towers after developer Harry Macklowe defaulted on about $7 billion in loans that the bank helped arrange to enable him to buy the buildings from Blackstone last year. Deutsche Bank, whose shares fell 30 percent in the year through yesterday, is selling those properties.
''No doubt the banks will take on more homes, casinos and even ski resorts before this is over,'' said KBW's Clark.
commercial RE bust here we come
------------------------
Aug. 7 (Bloomberg) -- Deutsche Bank AG will foreclose on the $3.5 billion Cosmopolitan Resort & Casino in Las Vegas after developer Ian Bruce Eichner defaulted on a $760 million loan, two people briefed on the situation said.
Germany's biggest bank weighed selling the complex after Eichner's January default, said the people, who asked not to be named because the discussions are private. Deutsche Bank will take over the Cosmopolitan and is talking with companies including MGM Mirage and Hilton Hotels Corp. to help run its 80,000-square-foot casino, the people said.
Sagging commercial real estate prices, weighed down by record subprime defaults, forced banks to hold projects until prices rise or sell at a loss. The Frankfurt-based bank would oversee an 8.5-acre development with two high-rise towers, three wedding chapels, a sandy beach overlooking the Las Vegas Strip and a deck featuring ''European-style bathing.''
''Deutsche Bank wants to be engaged in banking, not running a casino,'' said Matthew Clark, a London-based analyst at Keefe, Bruyette & Woods. ''They've had to decide between selling the Cosmopolitan into a bad market or holding on for better times.''
Deutsche Bank spokesman Scott Helfman declined to comment, as did Yvette Monet, a spokeswoman for MGM Mirage, who cited company policy. Hilton's Robert Allegrini also couldn't comment.
Casino Revenue Slides
Las Vegas, the heart of the U.S. gaming industry, is reeling from sluggish economic growth and soaring food and fuel costs. The city's casino revenue slid 16 percent in May, the fifth straight monthly decline, according to the Nevada Gaming Commission.
A partnership with another company may allow Deutsche Bank to avoid the ''extremely thorough'' process of obtaining a Nevada gaming license, said Anthony Cabot, who heads gaming law at Lewis and Roca LLP in Las Vegas. Such a move could also erode Deutsche Bank's revenue from the casino.
''One option is to bring in a licensed operator to effectively lease the entire casino area,'' he said.
MGM owns the Bellagio casino and is building the $11.2 billion CityCenter, which surround the Cosmopolitan on the Strip, making MGM a potential candidate to operate the Cosmopolitan, said Stamford, Connecticut-based Robert LaFleur, who covers gaming companies at Susquehanna Financial Group in.
Full Plate
Even so, ''MGM has its plate full building CityCenter and I'm not sure about their appetite for new projects,'' LaFleur said. MGM, the world's second-largest casino company behind privately held Harrah's Entertainment Inc., said this week that banks agreed to lend half of the $3 billion it's seeking to build CityCenter.
Hilton, the second-biggest U.S. hotel chain after Marriott International Inc., was bought last year for $20 billion by Blackstone Group LP, the world's largest private-equity firm.
Blackstone, based in New York, told investors on an Aug. 6 conference call to discuss its second-quarter results that Hilton was performing ahead of projections.
Deutsche Bank had 14.7 billion euros, currently valued at $22.6 billion, of commercial real estate loans at the end of June, company reports show. That amount was 10.7 billion euros after taking into account risk reduction measures including hedges, the bank said. It wrote down the investments by 543 million euros in the second quarter, or 309 million euros when hedges are included.
Earlier this year, Deutsche Bank took control of seven New York office towers after developer Harry Macklowe defaulted on about $7 billion in loans that the bank helped arrange to enable him to buy the buildings from Blackstone last year. Deutsche Bank, whose shares fell 30 percent in the year through yesterday, is selling those properties.
''No doubt the banks will take on more homes, casinos and even ski resorts before this is over,'' said KBW's Clark.
and the CC bust is only beginning
deflationary spiral of death....GRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR
----------------------------
Moody's Investors Service said Thursday that it put the long-term credit ratings of American Express on review for possible downgrade, citing worries about the company's asset quality.
deflationary spiral of death....GRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR
----------------------------
Moody's Investors Service said Thursday that it put the long-term credit ratings of American Express on review for possible downgrade, citing worries about the company's asset quality.
more of the dog and pony show
SEC a fraud
---------------------------------------
Bank of America gets subpoenas, reports SEC probe
Thu Aug 7, 2008 4:35pm EDT
NEW YORK (Reuters) - Bank of America Corp (BAC.N: Quote, Profile, Research, Stock Buzz), the largest U.S. retail bank, said on Thursday that it has received subpoenas and requests for information from federal and state government agencies over auction-rate securities.
The Charlotte, North Carolina-based bank also said it has received subpoenas, interrogatories or civil investigative demands from a number of state attorneys general regarding municipal derivatives transactions from 1992 to the present.
Bank of America said it is cooperating on both matters.
Separately, the bank said Countrywide Financial Corp, the mortgage lending giant it acquired last month, has responded to subpoenas from the U.S. Securities and Exchange Commission, and that the agency is conducting a formal investigation.
Bank of America disclosed the various regulatory matters in its quarterly report filed with the SEC.
SEC a fraud
---------------------------------------
Bank of America gets subpoenas, reports SEC probe
Thu Aug 7, 2008 4:35pm EDT
NEW YORK (Reuters) - Bank of America Corp (BAC.N: Quote, Profile, Research, Stock Buzz), the largest U.S. retail bank, said on Thursday that it has received subpoenas and requests for information from federal and state government agencies over auction-rate securities.
The Charlotte, North Carolina-based bank also said it has received subpoenas, interrogatories or civil investigative demands from a number of state attorneys general regarding municipal derivatives transactions from 1992 to the present.
Bank of America said it is cooperating on both matters.
Separately, the bank said Countrywide Financial Corp, the mortgage lending giant it acquired last month, has responded to subpoenas from the U.S. Securities and Exchange Commission, and that the agency is conducting a formal investigation.
Bank of America disclosed the various regulatory matters in its quarterly report filed with the SEC.
well the days of me having to see every bank and their mother out the first week of school at college campuses giving out free food, shirts, etc.....in exchange for signing up a credit card to anybody with a pulse
while i sit there thinking to myself am i living on a different planet
is over
while i sit there thinking to myself am i living on a different planet
is over
problem is alot of the smart ones not in debt that sat there and watched all this loonie toon shit happen asking themselves WTF is going on this is gonna end badly
will realize that all asset classes besides the day to day necessities i suppose are going to continue to deflate so pointless to take on credit for a while
the smart ones might start dipping their toes into the water (RE especially) in 2009 probably too early though still we'll see
will realize that all asset classes besides the day to day necessities i suppose are going to continue to deflate so pointless to take on credit for a while
the smart ones might start dipping their toes into the water (RE especially) in 2009 probably too early though still we'll see
tiz, here in cali, there are many, many people out making offers on REO's and they are paying to much imo, they think a deal is somewhere around 2004 prices-i have made offers on a few at 1996-1997 prices and don't even get a sniff...these folks to early, they are going to be stuck for 6-8 years to get it back. on the flip, a guy i know, who has more money than he knows what to do, is chasing preforeclosure's and offering to bring them whole on behalf of the owner's, and make payments until they can refi or workout the loan, in return he wants 50% of the appreciation over 10 years, will it work, don't know, but an interesting concept to be sure...have not seen one of his contracts so can't explain the particulars any more than that...
y too early now for sure this problem is huge.....prime is gonna get hit eventually and hard
and commercial will feel it eventually as well
plus america is the tip of the iceburg....many other countries gonna see RE crumble......probably not like US but who knows
i mean other than my immediate family i really don't know many people that don't have gobs of debt.....
2010 is really when the vulture's are gonna be circling most likely
bear buddy of mine with same mentality as me and way more money thinking of going into a foreclosure investment pool in 2009
and commercial will feel it eventually as well
plus america is the tip of the iceburg....many other countries gonna see RE crumble......probably not like US but who knows
i mean other than my immediate family i really don't know many people that don't have gobs of debt.....
2010 is really when the vulture's are gonna be circling most likely
bear buddy of mine with same mentality as me and way more money thinking of going into a foreclosure investment pool in 2009
plus something makes me think that once it bottoms its gonna stay down for the count
meaning you aren't gonna see a sharp bounce....
2007 levels won't be seen for a very very very long time....especially in places like cali
also mortgage rates are still high the rate cuts have done nothing on that front....since the banks are still strapped for cash
updated 2:36 p.m. CT, Thurs., Aug. 7, 2008
WASHINGTON - Rates on 30-year mortgages didn’t budge this week, while rates on other home loans were a mixed bag.
Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.52 percent for the week ending Aug. 7. That was the same as last week’s rate, which marked the second-highest of the year. The highest — 6.63 percent — came the week ending July 24.
meaning you aren't gonna see a sharp bounce....
2007 levels won't be seen for a very very very long time....especially in places like cali
also mortgage rates are still high the rate cuts have done nothing on that front....since the banks are still strapped for cash
updated 2:36 p.m. CT, Thurs., Aug. 7, 2008
WASHINGTON - Rates on 30-year mortgages didn’t budge this week, while rates on other home loans were a mixed bag.
Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.52 percent for the week ending Aug. 7. That was the same as last week’s rate, which marked the second-highest of the year. The highest — 6.63 percent — came the week ending July 24.
