Today marks the 75th anniversary of the 1929 stock market crash, and the passing of a lunar eclipse. Hopefullly it will also mark the end of a mean season, where bearish market strategies have been shot down.
China Raises Interest Rates for First Time in 9 Years (Update2) Oct. 28 (Bloomberg) -- China's central bank raised its benchmark interest rates for the first time in nine years, stepping up efforts to rein in investment that's stoked inflation and caused power shortages in the world's seventh-largest economy.
The one-year lending rate will increase by 0.27 percentage point to 5.58 percent, effective tomorrow, the Beijing-based People's Bank of China said in a statement on its Web site. The rate was last raised in July 1995. The ceiling on lending rates that banks can charge was also scrapped, the statement said.
``China's bid to curb inflation has been effective so far but investment is still growing too quickly,'' said Yiping Huang, Hong Kong-based chief China economist at Citigroup Global Markets Asia Ltd. ``There is a strong possibility the Chinese central bank will raise rates further in the near term.''
The action by the Chinese is a watershed event. A turning point. On that news all world markets downticked, including gold, and our futures, and the dollar bonered.
Long term interest rates appeared to have turned a corner up too, which is one more reason to for mortgage credit growth to slow, the money supply to continue declining, and the economy will turn down.
Oil fell yesterday on word that the supply of heating oil was higher than expected..."but don't worry, it will be lower than expected at some point in the future."
Obviously these guys know the real deal, and are so embarrrassed they need to resort to telling the truth every once in a while just to remain sane.
T. Bone Pickens was on Squawk this morning. He said:
"This noise about the Saudia and the Iranians wanting a lower oil price is just ridiculous. They're in the oil business. The world is more than half way through the hydrocarbon era and oil production is in decline while demand is rising. We simply aren't in a position to produce enough oil to keep up with this level of demand. Price is the only thing that can curtail demand."
8:20am 10/28/04 Merck & Co. Treasurer sells 63,299 shares By James Comtois NEW YORK (CBS.MW) – The VP and treasurer of Merck & Co. (MRK: news, chart, profile) sold 63,299 shares on Wednesday, a market value of nearly $1.3 million. Caroline Dorsa acquired the shares through the exercising of options, according to a filing with the Securities and Exchange Commission. This is the largest sale Dorsa has made and the first sale made in a year.
Guy oughta check with Larry Ellison of ORCL or Gates/Ballmer of MSFT.