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Sep 9, 2010

Mining Interactive : Mawson Completes Final Purchase of Alto Quemado High-Grade Gold-Copper Project, Peru. Sep. 9th., 2010

September 9, 2010


  • The Company has now completed the purchase of 100% of a company which holds the option to acquire the Alto Quemado gold-copper project in the mineral-rich Southern Peru Mineral Belt
  • Alto Quemado is a significant new discovery in Peru
  • Two styles of mineralization have been identified at Alto Quemado:
        -A high-grade near-term production gold target; and         -a Large tonnage copper-gold porphyry target

States Michael Hudson, Mawson President & CEO:  “Mawson has been exploring the Alto Quemado site for 3 months and has conducted extensive mapping and sampling which has significantly increased our understanding of the property.  Results from these programs will be released as they become available.   The Company is currently rehabilitating the artisanal workings to map and sample the high-grade gold structures beneath the leached surface cap as well as grid sampling the Santa Maria porphyry area.  Once Mawson has finalized our agreements with AQMC, we look forward to advancing environmental permitting to enable the project to be drill tested in 2011.”

Dear Friends:
With the completed 100% purchase of the gold-copper ‘Alto Quemado’ project in Peru, we can look forward to steady news-flow from Mawson not only from its Alto Quemado project but also from its new discovery at ‘Rompas’ in Northwest Finland, a project with Bonanza Grades and 150 sites identified to date over a 6km strike-length where 40 assays produced up to 373 oz/ton gold and 43.6% uranium.

With regard Rompas in Finland and Alto Quemado in Peru, Michael Hudson CEO had this to say in a September 6, 2010 interview:

“Exploration is an enticing business that can change dramatically with one result in the very short term, as evidence by the renewed interest in Mawson and its Rompas property.

Nevertheless, our vision is simple.  At Rompas our desire is to outline a major gold discovery.  Initial surface indications of the grade of grab samples taken over a 6km trend are very encouraging; however a lot of rigorous and diligent exploration work remains in order for Mawson to succeed in its vision.

Similarly in Peru the vision is to make a major discovery to create large upside for Mawson investors.  At Alto Quemado we have two targets on the one property: the porphyry zone and high grade gold structures.  We aim to increase our exposure through Peru given Peru’s “elephant country” status to host world class ore bodies.”

Additionally the Company holds significant NI43-101 uranium resources in Scandinavia and is in a strong cash position.

Consequently, the Mawson train is loaded with METAL & ENERGY projects and yes,
Mawson is a mining house in the making - - full steam ahead!

Stay Closely Tuned for more news from Mawson - - - an exciting
Metals (Gold) & Energy (Uranium) Company!!!

Nick L. Nicolaas
Mining Interactive "Ahead of the Pack"


MiningInteractive Videos
Click Here

Stay tuned for the most recent updates on Mawson Resources and other leading mining companies through the MiningInteractive Video Interviews.
Nick L. Nicolaas (604) 657-4058

From The Desk Of Nick Nicolaas : FDNN Alert 69 - Gold and Silver in Front of a Dramatic Breakout - Gold $7,000+ and Silver???

From the Desk of Nick Nicolaas – (FDNN)

Alert #69

September 8, 2010

Gold and Silver in Front of a Dramatic Breakout

(Gold $7,000+ and Silver???)
Dear Friends:
Here again is Rolf Nef, a friend from Kilchberg in Switzerland.  Rolf is the Manager of the Gold & Silver Fund (  His essay “Gold and Silver in Front of a Dramatic Breakout” includes some VERY TELLING charts.  Rolf’s essays in the past have been very revealing and if you are a Gold and Silver bull, like I am, then this is a must read:

Three of our Member Companies (, Mawson (TSX-MAW); Mosquito (TSXv-MSQ) and Tumi (TSXv-TM) are involved in Gold & Silver and I have been adding to my positions.

and Yes...

“You’ve gotta be in it to win it”
As always - - Stay Tuned!!

GATA : THE GATA DISPATCH : IMF sells 10 tonnes of gold to Bangladesh /Hinde Capital's Ben Davies takes gold price suppression show on the road. Sep. 9th., 2010

IMF sells 10 tonnes of gold to Bangladesh

By Glenn Somerville
Thursday, September 9, 2010
WASHINGTON -- The International Monetary Fund said on Thursday it sold 10 metric tonnes of gold to the central bank of Bangladesh on Sept. 7, using Tuesday's market prices for the transaction.
The IMF said the sale raised $403 million, adding that it was part of 403.3 tonnes approved for sale by its executive board in September 2009.
The sales are part of plans adopted last year to diversify the fund's sources of income and to increase low-cost lending to poor countries by up to $17 billion through 2014.
The IMF fund has already sold 212 tons of gold to the Reserve Bank of India, the Bank of Mauritius, and the central bank of Sri Lanka, all in November last year.
Thursday's sale is the first to a central bank since last November's sales. In a statement, the IMF said that at the end of July a further 88.3 tonnes had been sold through on-market sales that it announced in February.
An uncertain outlook for two of the world's major reserve currencies -- the dollar and the euro -- is seen providing a spur for central banks to buy gold.
Earlier this year there were reports China was prepared to buy gold from the IMF, though those reports were disavowed.
While Thursday's sale was modest in size, it drew attention in markets.
"It's only 321,000 ounces, the equivalent of 3,000 COMEX contracts," said Frank McGhee, head precious metals trader at Integrated Brokerage Services LLC in Chicago. "But it can, in general, indicate that the Asian central banks continue to buy and add gold into their reserves, which over the long term is a very healthy thing" for gold.
More than 120,000 contracts traded on Thursday, making the IMF sale less than 3 percent of a relatively light trading day on the COMEX exchange in New York.
Asian banks' interest in having gold holdings in their reserves offers support for the precious metal's price and may increase as the region's economic might grows.
"They prefer to buy on a break lower, but as the power continues to shift east, they continue to buy it and gold continues to head up over the long term," McGhee noted.
In after-hours trade following the IMF news, U.S. benchmark gold futures GCZ0 trimmed earlier losses to $1,245.90 an ounce on the COMEX division of the NYMEX.
A day earlier, gold futures had ran up to their highest level since June 28 at $1,264.70 an ounce, nearing the all-time high for the spot contract at $1,264.80, hit on June 21.

Hinde Capital's Ben Davies takes gold price suppression show on the road

8:40a ET Thursday, September 9, 2010
Dear Friend of GATA and Gold:
Ben Davies, CEO of Hinde Capital in London, has taken his gold price suppression show on the road, a road that will lead him to New York for the October 21 dinner conference of the Committee for Monetary Research and Education.
On Tuesday Davies made an extensive presentation about gold price suppression at "Gold Day" at the Mining Journal's investor seminar in London. (See An investment manager who attended Davies' presentation wrote about it the next day to an American friend, who shared the comment with GATA: "Ben Davies made some very powerful points in his speech yesterday in London. It could be considered quite controversial and thought-provoking. However, I would suggest that it was met with a reaction of apathy, slight incredulity, and raised eyebrows (like Roger Moore -- very British). I am certain he will get a very positive response in New York because the audience will understand and agree with his message."
That comment matches GATA's experience with most of the precious metal mining industry and the financial industry and indicates how much more work remains to be done.
Exclusively for King World News, Davies has written a preface to his presentation, a short essay that can be found here:
Davies' presentation itself pays tribune to the late gold banker Ferdinand Lips and cites GATA and our longtime supporter Sprott Asset Management in Toronto. The presentation can be found at the Hinde Capital Internet site here:
Information about the October 21 dinner conference of the Committee for Monetary Research and Education at which Davies will speak can be found at GATA's Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


MarketWatch: Personal Finance Daily: Fix the retirement system? Good luck with that. Sep 9th., 2010


Personal Finance Daily
SEPTEMBER 09, 2010

Thursday's Personal Finance stories

By MarketWatch

Don't miss these top stories:
The President's Economic Recovery Advisory Board recently offered up a report detailing eight ways to fix the U.S. retirement system, including consolidating the various workplace-based savings vehicles that exist (401(k)s, 403(b)s, 457, etc.), reducing the myriad maximum contribution levels to a single dollar amount and more.

Read Robert Powell's On Retirement column today for more on PERAB's 188-page report and how industry experts are reacting to it, and don't miss Chuck Jaffe's column on why some variable-annuity buyers are even more confused than usual.

Sure, simplifying and consolidating the various retirement options makes sense. And while you're at it, simplify the tax code and make it less subject to changes -- that would go a long way to help retirement savers determine the best tax-advantaged vehicle for them.

But the real crux of the retirement savings problem is simply that many people in the post-company-pension world don't have enough money saved. There's no eight-point plan to get around that issue. All you can do now is educate young people to save as early, and as often, and as much as possible.

-- Andrea Coombes , Personal Finance editor


Eight ways to fix the U.S. retirement crisis

Paul Volcker and his troupe, the President's Economic Recovery Advisory Board, are unlikely to appear on the "America's Got Talent" stage any time soon. But retirement experts are giving the group, which just issued a 188-page plan to fix the nation's complicated retirement system, mostly high marks for their effort.
See Robert Powell on eight ways to fix the U.S. retirement crisis.

Confused insurance buyers don't know who to trust

Complicated insurance products are sold, not bought. Nobody wakes up and says, "I need to buy a variable annuity today."
See story on variable annuity leaves buyers confused.


Rates on 30-year-fixed mortgages stop their free fall

After weeks of falling, the average interest rate on a 30-year fixed-rate mortgage rose slightly this week, according to Freddie Mac's weekly survey of conforming mortgage rates, released on Thursday.
See story on rates on 30-year-fixed mortgages inch higher.


Weekly jobless claims drop by 27,000

The number of people who filed new claims for unemployment benefits fell 27,000 to 451,000 in the latest week, reversing a recent run-up that stoked concerns of a weakening jobs market.
See story on weekly jobless claims drop by 27,000.


Commentary: Eight myths about the VIX

The Chicago Board Options Exchange Market Volatility Index, commonly known as the VIX by its ticker or "the fear index" among traders, is a useful tool. Not only is it one of the most common measures of volatility, it can also be a source of profits for those inclined to bet on future VIX movement.
See story on eight myths about the VIX.

Commentary: To know China, see the world through its eyes

Will the heavy national debt load of the U.S. turn it into another Greece? Could the U.S. cope if it was surpassed by China as the world's largest economy? Is the U.S. increasingly becoming a protectionist country?
See story on to know China, see the world through its eyes.

Commentary: Bulls should welcome an inevitable pullback

Pullbacks are inevitable, but unlike death and taxes, bulls should actually welcome one this time.
See story on bulls should welcome an inevitable pullback.

Behind the tech drama, signs of a consolidating industry

It's been a tense period for the technology sector, what with the bruising bidding war over 3Par Inc. and the mounting tensions between Hewlett-Packard Co. and Oracle Corp.
See story on behind the tech drama, signs of a consolidating industry.

Dollar-bullish ETF nears 'death cross'

An exchange-traded fund that follows the movement of the U.S. dollar against a basket of foreign currencies looks to be approaching a closely watched technical indicator traders call a "death cross."
See story on dollar-bullish ETF nears 'death cross.'


Trade gap narrows in July

The U.S. trade deficit shrank 14% in July, as U.S. goods sold abroad rose to an almost two-year high. Imports also fell.
See story on trade gap narrows in July.

Pentagon's health-care costs pinch defense contractors

Shares of America's top military contractors aren't likely to shake off a summer-long slump until Congress and the Pentagon tackle the soaring cost of health care for veterans.
See story on Pentagon's health-care costs pinch defense contractors.


Commentary: Is Apple caving to pressure from Android?

Apple Inc. must be feeling the heat from smart phones designed to run Google Inc.'s Android software.
See story on is Apple caving to pressure from Android?

CNBC EVENING BRIEF: Growth to Halt in Second Half, Reduce Payroll Tax: Roubini. Sep. 9th., 2010


»click here to see the latest top stories from


»click here to see the latest top video from 

NYT : Breaking News Alert: Florida Minister Cancels Burning of Korans on 9/11. Sep. 9th., 2010.

Breaking News Alert
The New York Times
Thu, September 09, 2010
Florida Minister Cancels Burning of Korans on 9/11

The pastor planning a burning of the Koran on Saturday said
he will cancel the event, adding he plans to meet with the
imam planning to build an Islamic center near ground zero.

Read More:

RTTNews: Evening Market Wrap: Stocks End With Modest Gains As Jobless Claims Drop - U.S. Commentary . Sep. 9th., 2010

Evening Market Wrap Thu Sep 9 17:01 2010  


Sep 9, 2010 Stocks End With Modest Gains As Jobless Claims Drop - U.S. Commentary Stocks ended Thursday's session with modest gains, as jobless claims fell by more than forecast, although dark clouds from the European financial crisis limited the upside. The major averages saw some downside in late-session dealing but managed to end the day above the unchanged line. Full Article

Economic News

Sep 9, 2010 Weekly Jobless Claims Fall By Much More Than Expected In another potential sign of improvement in the beleaguered labor market, the Labor Department released a report Thursday morning showing that first-time claims for unemployment benefits fell by much more than expected in the week ended September 4th. The report showed that initial jobless claims fell to 451,000 from the previous week's revised figure of 478,000. Economists had been expecting jobless claims to edge down to 470,000 from the 472,000 originally reported for the previous week. Full Article
Sep 9, 2010 Trade Deficit Narrows As Exports Rise And Imports Fall With the value of exports rising and the value of imports falling in the month of July, the U.S. trade deficit for the month narrowed by much more than economists had been expecting, according to a report released by the Commerce Department on Thursday. The Commerce Department said that the trade deficit narrowed to $42.8 billion in July from a revised $49.8 billion in June. The trade deficit had been expected to narrow to $47.3 billion. Full Article
Sep 9, 2010 OECD: Pace Of Recovery Slowing In Developed World The Organisation for Economic Co-operation and Development (OECD) slashed its growth forecast for developed economies on Thursday, and urged that government stimulus should not be withdrawn until the global recovery is secured. The Paris-based group forecast growth among developed economies to average an annualized 1.5 percent in the second half of 2010, with the pace of the slowdown picking up through the final months of the year. Full Article

Forex Top Story

Sep 9, 2010 Dollar Uncertain Despite Better Jobs Data The dollar was mixed on Thursday, falling further versus its resource-backed Canadian and Australian counterparts while staying near its 1995 low against the yen. A hectic day on the economic front was headlined by better-than-expected US jobless claims data, which temporarily diffused talk of a double-dip recession. Full Article


Sep 9, 2010 3M To Buy Privately-held Arizant For $810 Mln Cash - Update Diversified technology company 3M Co. (MMM) said Thursday it has agreed to acquire privately-held Arizant Inc. for $810 million in cash. The company, which is in a buying spree, said the latest acquisition expands its infection prevention product portfolio. The deal is expected to be completed in the fourth quarter, subject to customary closing conditions and regulatory approvals. Full Article

Political News

Sep 9, 2010 Most Americans Say Afghanistan Will Not Be Another VietnamEven though the U.S. is headed towards the ninth anniversary of combat operations in Afghanistan on October 7th, the results of a Quinnipiac University poll released on Thursday showed that most Americans do not think the U.S. is heading for the same kind of involvement in Afghanistan as it had in the Vietnam War. Full Article

NYT : Afternoon Business News : Union Accuses China of Illegal Clean Energy Subsidies. Sep. 9th., 2010


Union Accuses China of Illegal Clean Energy Subsidies

The United Steelworkers union plans to file a legal case that accuses China of violating World Trade Organization rules.
Bits Blog

Apple Loosens Rules for App Approvals

Apple says it will make its app approval process more transparent.

In Land of Fast Cars and Trains, Buses Try to Make Inroads

That it is taking so long to lift a ban on intercity bus service in Germany is a reminder that, despite steady change, barriers to full-bore free enterprise remain in Europe.

U.S. Trade Deficit Narrowed in July

The 14 percent decline in the trade deficit in July should give a lift to overall economic growth.

U.S. Opposes European Emission Charges for Airlines

The United States has stepped up pressure to stop European regulators from charging airlines for their greenhouse gas emissions when they take off and land in Europe.

The Washington Post : Afternoon Edition: Most read Articles. Sep 9th., 2010

Most Viewed Articles on

1) Obama: Emanuel to decide on Chicago race after midterms

The expected departure of Chief of Staff Rahm Emanuel to run for mayor of Chicago is likely to mark the beginning of a wider White House shake-up, officials said Wednesday, one aimed at helping the administration regain its footing in the aftermath of anticipated Democratic losses in the midterm elections.

2) Obama urges Fla. pastor to call off plan to burn Korans on Sept. 11

President Obama urged a Florida pastor Thursday to call off a plan to burn copies of the Koran on Sept. 11, warning that such a "stunt" would amount to a "recruitment bonanza for al-Qaeda" and would endanger Americans.

3) Suit dismissed against firm in CIA rendition case

A closely divided federal appeals court has dismissed a lawsuit seeking damages from a company that worked with the CIA as part of its "extraordinary rendition" program.

4) The president joins the fray

With a rejuvenated president, it's not over till it's over.

5) The Early Lead: Patriots' Tom Brady involved in car accident

Updated at 11:34 a.m. Tom Brady told the New England Patriots' media relations staff that he is okay after an auto accident early Thursday morning in Boston. Brady is at Gillette Stadium, attending meetings ahead of Sunday's season opener. He was expected to practice with the team in the afternoon.

6) Democratic strategists pooh-pooh the polls

The Democrats have few options but to fight the tyranny of the numbers.

7) World Economic Forum survey: Debt, financial crisis hurt U.S. competitiveness

Large deficits and a weakened financial system have made the United States less competitive in the global economy, the World Economic Forum said in its annual review of the competitiveness of countries.

8) Democats and Republicanines

With Democrats cowering and Republicans growling, it's hard to get details of the "stimulus" package.

9) The Obama era, Phase Two

The second act of Obama's presidency begins now.

10) South Carolina rising

Nikki Haley and Tim Scott's candidacies show that the state has changed for the better.



trader 11 276
Deutsche Bank Dents GainsBoosted by a surprise tumble in jobless claims, Wall Street closed in the green, but enthusiasm was curbed by concerns about a possible Deutsche Bank stock sale.

Apple Gives In to Developers

Apple said it will ease some of the restrictions it places on iPhone and iPad app developers.

Just Another Quick Fix?

President Obama is proposing a big tax break for businesses, but some economists are worried it will fail to spur long-term growth.

Don't Worry, Be Happy

All too often we embrace the negativity around us instead of pushing it away -- and when we do, it indeed takes its toll.

RTTNews Morning Market Briefing: Stocks Primed For Solid Upside Following Drop In Jobless Claims - U.S. Commentary . Sep. 9th., 2010.

Morning Market Briefing Thu Sep 9 09:01 2010 


Sep 9, 2010 Stocks Primed For Solid Upside Following Drop In Jobless Claims - U.S. Commentary Stock futures are pointing to a solid move to the upside Thursday morning, as the markets are digesting a bigger than expected decline in weekly jobless claims levels. The major index futures are all in positive territory, with the Dow futures up by 52 points. Full Article

Economic News

Sep 9, 2010 BoE Freezes Key Rate, GBP 200 Bln Bond Purchase U.K. central bank left its key interest rate unchanged at a record low again and maintained the size of the quantitative easing as widely expected, on Thursday. Full Article
Sep 9, 2010 Bank Of Korea Unexpectedly Retains Key Rate The Bank of Korea unexpectedly left its key interest rate unchanged for a second month amid rising concern over the sustainability of global recovery. Full Article
Sep 9, 2010 OECD: Recovery Slowing Faster Than Anticipated, Yet Another Downturn UnlikelyGlobal economic recovery may be slowing "faster than previously anticipated", the Organization for Economic Cooperation and Development said on Thursday. Full Article
Sep 9, 2010 U.K. July Visible Trade Deficit Widens To Record High The U.K. trade in goods deficit widened to a record high in July, casting doubt over the ability of exports to underpin economic growth in the coming months. Full Article
Sep 9, 2010 Australia Unemployment Rate Eases To 5.1% In AugustAustralia's unemployment rate declined in August to a seasonally adjusted 5.1 percent, the Australian Bureau of Statistics said on Thursday. Full Article
Sep 9, 2010 Weekly Jobless Claims Drop To 451,000 In another potential sign of improvement in the beleaguered labor market, the Labor Department released a report Thursday morning showing that first-time claims for unemployment benefits fell by much more than expected in the week ended September 4th. Full Article
Sep 9, 2010 U.S. Trade Deficit Narrows Much More Than Expected In July With the value of exports rising and the value of imports falling in the month of July, the U.S. trade deficit for the month narrowed by much more than economists had been expecting, according to a report released by the Commerce Department on Thursday. Full Article

Earnings News

Sep 9, 2010 Men's Wearhouse Q2 profit up 8%, beats Street; guides Q3 earningsWednesday, Men's Wearhouse, Inc. (MW) reported a 8% rise in second-quarter profit, reflecting higher sales and better margins. Both earnings per share and sales came in above the Street view. Further, the company provided earnings outlook range for the third quarter, with the current estimate of analysts at the low end of the range. Full Article

Corporate News

Sep 9, 2010 3M buys private firm Arizant for $810 mlnThursday, 3M Co. (MMM) said it agreed to buy privately held Arizant Inc. for $810 million in cash with 375 employees. 3M expects the acquisition of the firm, which employs 375 personnel, will be dilutive to its earnings for one year following completion of the transaction. Excluding purchase accounting adjustments and anticipated integration costs, the company anticipates the acquisition to be neutral to earnings. Further, 3M said it expects the deal to close in the fourth quarter Full Article
Sep 9, 2010 Goldman Sachs to pay $31 mln fine to U.K's Financial Services Authority - reportsWednesday, The Goldman Sachs Group, Inc. (GS) agreed to pay an amercement of about GBP 17.5 million or US$27 million to the U.K's Financial Services Authority acknowledging its mistake in regulatory disclosures about London-based trader Fabrice Tourre, said media reports. The FSA said Goldman Sachs failed to notify it that the SEC had issued notices to the bank and to Tourre alleging violations of U.S. securities laws relating to Goldman's troubled Abacus mortgage-security product. Full Article

Todays WS Events

Sep 9, 2010 Monsanto To Present At The UBS Best Of Americas Conference; Webcast At 7:20 AM ET Monsanto Co. (MON) will present at the Fifth Annual UBS Best of Americas Conference, on September 9, 2010. The event is scheduled to begin at 7:20 AM ET. To access the webcast, log on at
Sep 9, 2010 Union Pacific To Present At The Credit Suisse 2010 Automotive & Transportation Conference; Webcast AUnion Pacific Corporation (UNP) will present at the Credit Suisse 2010 Automotive & Transportation Conference, on September 9, 2010. The event is scheduled to begin at 8:25 AM ET. To access the live webcast, log on at
Sep 9, 2010 Ford To Present At Credit Suisse 2010 Automotive And Transportation Conference; Webcast At 11:15 AM Ford Motor Co. (F) will present at the Credit Suisse 2010 Automotive and Transportation Conference in New York. The event is scheduled to begin at 11:15 AM ET, September 9, 2010. To access the audio webcast, log on to
Sep 9, 2010 National Semiconductor Q1 11 Earnings Conference Call At 4:30 PM ET National Semiconductor Corporation (NSM) will host a conference call at 4:30 PM ET September. 9, 2010, to discuss its Q1 11 financial results. To access the live audio webcast, log on at The call can also be accessed by dialing (888) 434-6355 or (706) 902-0309. For replay of the call, dial (800) 642-1687 or (706) 645-9291 with pin #83675850.
Sep 9, 2010 Texas Instruments Mid-quarter Financial Conference At 5:30 PM ET Texas Instruments Inc. (TXN) will host its Mid-quarter financial Conference to provide the update and answer questions from the investor audience. The event is scheduled to begin at 5:30 PM ET September 9, 2010. To access the webcast, log on at

FOX BREAKING BUSINESS NEWS: Weekly jobless claims fell by 27,000 to 451,000, solidly beating forecasts from economists.Sep 9th., 2010

Trader 112 [276]
Futures Stay Green on DataFutures were modestly higher following a better-than-expected report on jobless claims.

Jobless Claims Hit Two-Month Low

New claims for unemployment benefits fell by a less-than-expected 27,000 to 451,000 last week.

Goldman Slapped With $27M Fine

British regulators fined Goldman Sachs for inadequate disclosure of a U.S. probe targeting the bank's Abacus mortgage-security product.

OPEC: Oil Demand Will Suffer

OPEC said world demand for the group's oil will be lower than expected this year due in part to the slowing economic recovery.

Bank of England Keeps Rates at 0.5%

The Bank of England held interest rates at the same level for the 18th month in a row and announced no new quantitative easing purchases.

FINANCIAL & FOREX INFO : REUTERS - BEFORE THE BELL:Stock futures edge up ahead of jobless claims. Sep. 9th., 2010


Stock futures edge up ahead of jobless claims
UK watchdog fines Goldman Sachs $27 million
British MPs to grill BP CEO Hayward
Economists cut U.S. growth forecast again
Bank of England holds rates at 0.5 percent
U.S. slips in WEF's competitiveness rankings
FDIC's Bair warns of government "exposure" in mortgages
Regulator blocks NAB's $12 billion bid for AXA unit
Toys R Us to double U.S. store print for holiday season
OECD says recovery slowing, urges policy caution

mARKETwATCH : Special Financial Services: Goldman Slapped with $27 Million Fine by U.K. FSA

Goldman slapped with $27 million fine by U.K. FSA
By Simon Kennedy MarketWatch

The U.K.’s financial-services watchdog said Thursday that it has fined Goldman Sachs 17.5 million pounds ($27 million) for failing to disclose a U.S. fraud probe that encompassed the firm’s British operations. 

The Washington Post : Wonkbook: Bennet vs. Obama; Fed sees "deceleration"; Boehner accepts two-year tax cut. Sep. 9th., 2010


 Thursday, September 9, 2010
Wonkbook: Bennet vs. Obama; Fed sees "deceleration"; Boehner accepts two-year tax cut Shana tova to Wonkbook's Jewish readers and -- you know what? -- to its non-Jewish readers too. May your year be filled with fast growth, contained health-care costs, and lots and lots of charts. Sadly, the Fed's latest beige suggests America is only headed for one of those things: The charts. Economic growth, they say, is showing signs of "deceleration" across the economy.
In Colorado, Sen. Michael Bennet is in an uphill fight for reelection. And so despite his warm relationship with the Obama administration, he's come out with a stinging press release opposing the White House's new infrastructure plan. He's harder on it, in fact, than Republican governor Mitch Daniels, who I interviewed yesterday, and who's also pushing a stimulus plan more ambitious than anything currently making its way around the Hill.
What else? Boehner is saying he'll accept a two-year extension of the Bush tax cuts, which suggests that Republicans see Orszag's op-ed suggesting exactly that as a way to end this debate in their favor -- though they don't mention that Orszag also wanted the cuts to expire in two years. Tyler Cowen and David Leonhardt offer up the two sides of the housing debate. A new study shows that birthright citizenship would increase the number of illegal immigrants. And there's more stuff, besides. But you knew that. This is Wonkbook, after all.
Top Stories

The Federal Reserve predicts slower growth going forward, reports Neil Irwin: The so-called 'Beige Book,' which aggregates different types of consumer data and anecdotal evidence from around the country, found "widespread signs of [economic] deceleration."
John Boehner says he'd accept a two-year extension of the Bush tax cuts:
Michael Bennet is the first Democratic Senator to oppose Obama's infrastructure bank plan, reports Meredith Shiner: "'I will not support additional spending in a second stimulus package. Any new transportation initiatives can be funded through the Recovery Act, which still contains unused funds,' Bennet said in a statement. 'Public-private partnerships that improve our infrastructure are a good idea, but must be paid for, should not add a dime to the deficit and should be covered by unused Recovery Act dollars.' 'We must make hard choices to significantly reduce the deficit.'"
My interview with Indiana governor Mitch Daniels: He'd like a payroll-tax holiday, and is a lot more positive on Obama's infrastructure plan than Bennet is.
Eliminating birthright citizenship would increase the number of illegal immigrants, reports Miriam Jordan: "The analysis by the nonpartisan Migration Policy Institute predicted illegal U.S.-born individuals would number about five million by 2050, if birthright citizenship were repealed in the near future. Currently, the U.S. is home to a total of 11 million illegal immigrants...Jennifer Van Hook, a demographer and the report's principal author, said such a change would instead increase the size of the illegal population, a commonsense result of illegal immigrants having children after a birthright repeal.
HOUSING DEBATE: Tyler Cowen believes housing prices need to fall, but can't see how we can let them: "For how long can the government prop them up? Are we never to have a private market in mortgages again? Yet what happens if we let them fall? Arguably many banks would once again be 'under water.' Enthusiasm for another set of bailouts is weak, to say the least. Our government would end up nationalizing these banks and it still would be on the hook for their debts. The blow to confidence would be a major one, especially if along the way we saw a recreation of a Lehman or Bear Stearns or A.I.G. episode. I increasingly believe there is no easy way out of this dilemma and it is a major reason why the U.S. economy remains stuck. Housing prices must fall, yet...housing prices must not fall."
David Leonhardt believes they've pretty much fallen already: "The ratio of median house price to income is about 3.4, compared with a prebubble average of about 3.2. Given the economy’s weak condition and the still high number of foreclosures, prices may well fall more in the next year or two. They look especially high in places where rents are comparatively cheap, like San Diego and San Francisco. And maybe income growth will remain weak for years, holding down home-price growth. But if you can imagine staying much longer than a few years, you should take some comfort in the fact that the bubble seems mostly deflated."
Rosh Hashanah interlude: Shana tova from the Muppets.
Still to come: Matt Miller argues for a payroll-tax cut; the deficit totaled $1.3 trillion in FY2010; a major climate lobbying group is shuttering; Michelle Obama pushes an anti-obesity bill before Congress;; and David Byrne does his thing.

Speaking of the payroll tax, Matt Miller argues for cutting it: "When Social Security began, payroll taxes were just 1 percent. Today, between the employer and employee contributions, and including the smaller sums that help fund Medicare, they're 15.3 percent. The payroll tax has quietly soared from 2 percent to 33 percent of federal revenue since World War II -- meaning it now brings in nearly as much as the individual income tax, which accounts for 43 percent. When you include the employer's matching payments, which effectively come out of wages, most families pay more in the regressive, job-killing payroll tax than in income tax."
The budget deficit fell by $100 billion this year, reports Jeff Bater: "'Relative to the size of the economy, this year's deficit is expected to be the second-largest shortfall in the past 65 years: At 9.1% of gross domestic product, that deficit will be exceeded only by last year's deficit of 9.9% of GDP,' the CBO said. Corporate income taxes rose by $32 billion, partly reflecting improved economic conditions. Yet spending on unemployment benefits rose as the sluggishness of the recovery keep Americans out of work. Interest payments also increased on the public debt, which has mounted because of years of deficit spending."
Elizabeth Warren spoke with President Obama this week about leading the Bureau of Consumer Financial Protection:
Small lenders are still struggling with bad loans from the crisis, reports Robin Sidel: "The community-banking industry's troubles were evident in the Federal Deposit Insurance Corp.'s latest quarterly report, issued last week. The FDIC said the pace of declines in loan charge-offs is slower at community banks than at banks that have more than $1 billion in assets. Smaller banks also released fewer reserves in the second quarter than did large banks, meaning they still think they need to keep extra money stashed away to cover loans that go sour. The amount of loan balances that are 90 days past due rose 0.3% at community banks, while the larger banks reported a 5.3% decline."
US economic competitiveness has fallen, according to the World Economic Forum:
There are almost five jobless workers for every opening, reports Catherine Rampell: "The job openings rate -- that is, the number of job openings, relative to the sum of openings and occupied jobs -- was highest for professional and business services and lowest for construction and for state and local government work. The hiring rate, however, was nonetheless quite high for construction, even if the number of advertised openings were few."
Mike Konczal reads Austan Goolsbee's dissertation and finds a strong case against the the R&D tax credit:
Joe Stiglitz explains how to fix the housing market: "Corporations have learned how to take bad news in stride, write down losses, and move on, but our governments have not. For one out of four US mortgages, the debt exceeds the home’s value. Evictions merely create more homeless people and more vacant homes. What is needed is a quick write-down of the value of the mortgages. Banks will have to recognize the losses and, if necessary, find the additional capital to meet reserve requirements. This, of course, will be painful for banks, but their pain will be nothing in comparison to the suffering they have inflicted on people throughout the rest of the global economy."
A group of conservative economists debate the Fed's next move:
The roots of the unemployment problem may harder to combat than we think, writes Tim Fernholz: "The most worrying theory, though, is that before the financial crisis, our unemployment level was unnaturally low. By this measure, our unsustainable economic practices drove unemployment below its 'natural' -- non-inflationary -- state. The natural resting point of unemployment is probably not 9.6 percent -- demand is still weak -- but by this telling, it's higher than the traditionally accepted 5 percent. Call this the 'old normal' theory -- we've never really had the strong labor market we thought was there."
Talking Heads interlude: David Byrne et al play "Thank You for Sending Me An Angel".

Clean Energy Works, a leading climate change lobbying coalition is shutting down, reports Darren Samuelsohn: "At its peak, the coalition had 200 field organizers in key states and more than 45 staffers based out of a 'war room' in downtown Washington. It is led by Paul Tewes, who ran President Barack Obama’s 2008 campaign operations in Iowa and other battleground states...In the short term, leaders tied to the group say they will focus on fighting to defend the Environmental Protection Agency’s authority to regulate carbon dioxide from power plants and other industrial sources under the Clean Air Act."
The FTC is suing manufacturers of LED light bulbs:
BP is denying its well design had any role in the Gulf spill, report Steven Mufson and David Hilzenrath: "'Transocean was solely responsible for operation of the drilling rig and for operations safety,' the report says in an appendix. 'It was required to maintain well control equipment and use all reasonable means to control and prevent fire and blowouts.' The report also said Transocean and BP rig leaders jointly 'reached the incorrect view' on well tests in the crucial hours before the explosion. And Bly said BP needs to reexamine the way it oversees work by its contractors."
House energy chair Ed Markey is slamming the BP report:
Some are blaming DDT bans for an increase in bedbugs, writes Jerry Adler: "Long before the United States banned most uses of it in 1972, DDT had lost its effectiveness against bedbugs--which, like many fast-breeding insects, are extremely adept at evolving resistance to pesticides... according to Jody Gangloff-Kaufmann, an urban entomologist at Cornell, among a wide variety of pesticides tested against bedbugs within the last two years, DDT performed the worst. In the 1960s and 1970s, most of the bedbugs that had survived the onslaught of DDT were wiped out by malathion, until it, too, stopped working, and the same thing happened with a class of chemicals called pyrethroids."
Business groups are resisting administration efforts to raise energy prices to pay for economic stimulus:
An Interior Department study suggests that oil regulators are overworked, reports John Broder: "The Outer Continental Shelf Safety Oversight Board noted in a report (PDF) on Wednesday that oil and gas leasing off the nation’s coastlines had nearly tripled since 1982, while the size of the regulatory staff had declined by a third. Off the West Coast, there are five inspectors for 23 offshore production platforms. In the Gulf of Mexico, there are 55 inspectors for 3,000 facilities, the report states."
Great moments in sportsmanship interlude: Dwayne Wade blocks a small child's shot.
Domestic Policy

Michelle Obama is urging Congress to pass a bill fighting childhood obesity, reports Campbell Robertson: "Under the act, food sold in schools would have to meet new nutrition guidelines, but schools would get an increased amount of federal reimbursement money for meals. It would also expand the number of poorer students who are eligible for free and reduced-price school meals. In early August, on the eve of the act’s passage in the Senate, Mrs. Obama wrote an op-ed article in The Washington Post encouraging lawmakers to vote yes, which they did, unanimously. The bill is now expected to be on the agenda this month in the House of Representatives, where lawmakers have been working on a version that would add new elements, and more financing, to the $4.5 billion version that passed in the Senate."
A Pentagon advisor is urging military personnel benefit cuts as a deficit reduction measure:
Thirteen new senators have signed on to a push for a line item veto, reports Meredith Shiner: "The measure, introduced by Sens. Russ Feingold (D-Wis.), Tom Carper (D-Del.) and John McCain (R-Ariz.), has nearly 20 co-sponsors -- and some Republicans are pushing to see the idea included in the GOP's political blueprint for winning back Congress...President Barack Obama indicated his support of the modified line-item veto earlier this spring, and all three chief sponsors cited the call for action from the White House as significant in getting the bill through the Senate."
More districts are experimenting with letting teachers run schools:
Cigarette tax hikes don't lead to increased evasion, writes James Ledbetter: "More and more people, then, have a theoretical incentive to hit the road for cheaper smokes. In reality, though, not many do. According to one Kennedy School study published in 2008, 40 percent of smokers live within 40 miles of another state, yet only 2 percent travel 40 miles or more to buy cigarettes. The authors conclude that the average smoker 'is willing to travel 2.7 miles to save one dollar on a pack of cigarettes.' For most people, the savings aren't worth more than a few minutes in the car."
Richard Florida explains the economic value of population density:
Closing credits: Wonkbook is compiled with the help of Dylan Matthews and Mike Shepard.