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About 'total debts to assets ratio'|Finance :: Leverage Ratio :: Debt-to-Equity Ratio







About 'total debts to assets ratio'|Finance :: Leverage Ratio :: Debt-to-Equity Ratio








House               of               Representatives               did               not               pass               the               Emergency               Economic               Stabilization               Act               bill               today.

Speaker               Nancy               Pelosi's               untimely               attack               on               Bush,               with               whom               she               cooperated               in               finalizing               the               draft               during               the               weekend,               made               many               Republicans               grow               cold               feet.

So               today,               when               the               bill               was               put               vote,               it               failed               to               muster               the               required               majority               of               218.

While               228               voted               for               it,               205               voted               against               it.

For               the               market,               it               was               almost               a               foregone               conclusion               that               it               would               be               passed,               based               on               the               bipartisan               camaraderie               shown               in               the               weekend.
               And               when               the               market's               expectations               were               belied,               it               reacted               violently.

The               Nasdaq               and               S&P               500's               fell               by               the               largest               points               since               the               1987               Black               Monday.

Dow               Jones               Industrial               Average's               (DJIA)               slide               was               surpassed               only               by               the               fall               in               the               wake               of               the               9/11               attacks.
               Global               markets               too               reacted               by               sliding               4-5%               be               it               European               or               Asian               markets.
               Even               the               fact               that               the               Fed               and               nine               other               central               banks               pumped               in               $620               bln               overnight               to               assure               liquidity               in               the               banking               system,               was               not               noticed.
               In               UK,the               mortgage               lender               Bradford               &               Bingley               was               nationalized.

Their               deposit               taking               branches               are               to               be               acquired               by               Spain's               Bank               Santander               (STD).

Belgium,               Netherlands               and               Luxembourg               took               a               combined               $16               bln-stake               of               49%               in               Fortis               bank               in               a               similar               bail-out               move.

Iceland's               Glitnir               and               Germany's               Hypo               also               had               money               infusions               from               their               respective               governments.
               With               European               currencies               falling,               US               dollar               was               the               obvious               beneficiary.
               Economic               Data:
               Personal               consumption               expenditures               (PCE)               for               the               month               of               August               -               Total               spending               was               unchanged               though               analyst               forecast               was               for               an               increase               of               2%.


               Personal               income               saw               a               meager               increase               of               0.5%               but               it               was               still               higher               than               the               consensus               forecast               of               .
               September               Farm               Prices               Index               -               fell               by               -1.3%               from               August.

The               Crop               Index               fell               by               -1.7%               and               the               Livestock               Index               by               -2.2%.
               Emergency               Economic               Stabilization               Act               Bill:
               Yes,               that               is               the               name               of               the               Bush's               financial               recovery               plan.

Some               of               the               clauses               in               the               bill               include:               
               stricter               regulatory               oversight,               limiting               executive               compensation,               relief               from               foreclosure,               purchasing               illiquid               assets               using               the               $700               to               be               allocated               in               three               tranches               of               $250,               $100               and               $350               under               supervision.
               One               important               clause               allows               Fed               to               reward               higher               reserve               holding               banks               by               paying               interest               on               that               amount.
               CBOE               Volatility               Index               (VIX)               soared               through               nearly               12               points               to               46.72.
               Oil               fell               by               $-10.52               (-9.84%)               to               $96.37.
               Gold               being               the               safe               haven               alternative               in               times               like               this,               went               up               by               $5.90               (0.66%)               to               $894.40.
               Government's               Treasury               bonds               too               are               hot               favorites               now.
               Market               indices:
               Dow               went               DOWN               by               -777.68               (-7.50%)               to               10365.45               
               SP               500               DOWN               by               -106.59               (-9.63%)               to               1106.42               
               Nasdaq               DOWN               by               199.61               (-10.06%)               to               1983.73
               NYSE               :
               Daily               volume:               1.86               bln               
               A/D               Ratio:               163               stocks               advanced               against               3109               declined               
               52-weeks               Hi/Lo:               Only               14               stocks               attained               new               Highs               while               970               stocks               made               it               down               to               new               Lows
               Nasdaq:
               Daily               volume:               2.82               bln               
               A/D               Ratio:               414               stocks               advanced               against               2572               declined               
               52-week               Hi/Lo:               21               stocks               topped               new               Highs               while               705               stocks               set               new               Lows
               Market's               fall               today               spread               though               all               of               its               sectors.
               Bain               Capital               and               Hellman               &               Friedman               are               acquiring               Lehman               Brother's               troubled               Neuberger               Berman               division               for               $2.15               bln.
               Japan's               Mitsubishi               UFJ               (MTU)               is               to               acquire               a               20%               stake               in               Morgan               Stanley               (MS)               for               $9               bln.
               Details               of               Citibank's               acquisition               of               Wachovia               business:               
               Citigroup's               total               outlay               in               acquiring               Wachovia               is               around               $2.2               bln.

That               covers               $700               bln               operational               assets               and               liabilities               and               $53               bln               senior               and               subordinated               debts.

The               FDIC               will               absorb               any               losses               beyond               $42               bln               that               arises               out               of               the               mortgage               portfolio               worth               $312               bln               which               Citi               assumed.

Citi               is               allowed               to               issue               $10               bln               common               stock               to               public.
               Company               Results:
               Walgreen               (WAG)               produced               quarterly               earnings               that               conformed               to               the               analyst's               expectations.

Circuit               City's               (CC)               earnings               were               disappointing.
               Analyst's               Ratings:
               Upgraded               stocks               are:
               BorgWarner               Inc(BWA),               Brookfield               Infrastructure               Partners               (BIP),               
               Canadian               Imperial               Bank               of               Commerce               (CM),               National               City               Corp               (NCC),               Nortel               Networks               Corp               (NT),               PMFG               Inc               (PMFG),               Sovereign               Bancorp               (SOV),               Take-Two               Interactive               Software               (TTWO),               Ticketmaster               (TKTM)               and               Tellabs               Inc               (TLAB).
               Downgraded               stocks               include:
               Apple               (AAPL),               Brookline               Bancorp               (BRKL),               Citrix               Systems               (CTXS),               Comcast               Corp               (CMCSA),               Coeur               d'Alene               Mines               (CDE),               Concur               Technologies               (CNQR),               DISH               Network               (DISH),               Freeport-McMoRan               Copper               &               Gold               (FCX),               Motorola               Inc               (MOT),               Research               In               Motion               Ltd               (RIMM),               Sadia               SA               (SDA),               Sprint               Nextel               Corp               (S),               Strategic               Hotels               &               Resorts               (BEE),               Thor               Industries               (THO),               Vasco               Data               Security               International               (VDSI)               and               Winnebago               Industries               (WGO).
               Credit               is               hard               to               come               by               for               even               banking               institutions.

So               they               are               charging               each               other               more               than               4%               for               just               an               "overnite"               loan.
               Where               did               all               this               trouble               start?
               For               a               change,               the               answer               comes               from               Canadian               prime               minister               Harper               (comments               after               the               hyphens               are               mine)               :
               1.

poor               oversight               -               self-governed               doesn't               mean               not               governed.


               2.

cheap               credit               -               lying               about               the               applicant's               income               and               capacity               to               return               the               loan               
               3.

tax               sops               that               give               rise               to               housing               bubbles               -               encouraging               people               to               leverage               too               much               
               4.

Ignoring               early               warning               signs               -               yeah,               anybody               who               had               the               nerve               to               warn               was               intimidated               by               accusations               of               conspiracy               theory               or               doomsday               prophesy
               Before               calling               our               northern               neighbor               a               traitor               or               backstabber,               remember               he               is               just               telling               the               truth.
               Yes,               truth               can               be               unsavory               and               uncomfortable.






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