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Deutsche Bank's Chadha Shifts From Most Bullish to Most Bearish

Nov. 7 (Bloomberg) -- Deutsche Bank AG's Binky Chadha cut his year-end forecast for the Standard & Poor's 500 Index to as low as 800, turning him from the most bullish U.S. equity strategist tracked by Bloomberg to the most bearish.

Chadha said the S&P 500 will trade between 800 and 1,000 for the rest of the year, down from the 1,350 projection he made in September. The benchmark for U.S. equity has dropped 26 percent since then to 930.99. Chadha's new prediction is the lowest among seven strategists who make year-end forecasts and are tracked by Bloomberg. He expects the benchmark to climb to 1,140 by the end of 2009 and 1,425 by Dec. 31, 2010.

http://www.bloomberg.com/apps/news?pid=20601087&sid=arTh9Il5r8rk&refer=home

U.S. Consumer Credit Rose in September After Drop

Nov. 7 (Bloomberg) -- Borrowing by U.S. consumers rose in September, reversing the biggest drop on record, according to statistics from the Federal Reserve.

Consumer credit rose by $6.9 billion, or 3.2 percent at an annual rate, to $2.59 trillion, the Fed said today in Washington. In August, credit fell by $6.3 billion, the most since records began in 1943.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aQfXsLHgYS4M&refer=home

China said preparing stimulus as economy slows

SAN FRANCISCO (MarketWatch) -- The Chinese government is preparing an economic stimulus package to jump-start slowing economic growth, Chinese official media reported Friday.
The "large" economic stimulus package will be released after the decision is made at the annual Central Economic Working Conference slated for late November in Beijing, the China Daily reported on its Web site Friday, citing the Hong Kong-based Wen Wei Po newspaper. It did not specify how large the package could be.

http://www.marketwatch.com/news/story/China-said-preparing-stimulus-package/story.aspx?guid={5ABAA3A7-F385-4CF7-AD45-4DD4BAF1A6B1}

Pipes Are Being Unclogged but the All-Clear Is a Long Way Off

By Mohamed El-Erian
November 4, 2008

There are many interesting aspects to the crisis that started in the U.S., spread round the world and prompted unprecedented policy responses. One that I have stressed, including in previous Financial Times contributions, is the repeated ability of the crisis to morph.

This dynamic is again in play today and will be an important driver of markets and policies in the weeks ahead. Look for the mix between deleveraging and economic concerns to shift towards the latter; and, on the other side of the valuation tug-of-war, for excessive policy pessimism to lift as measures make the transition from design and execution to the effectiveness phase.

http://www.pimco.com/LeftNav/Viewpoints/2008/Viewpoints+November+2008+Pipes+Unclogged+El+Erian.htm

Goldman Cuts S&P 500 Profit Forecast, Citing Economic Slowdown

Nov. 7 (Bloomberg) -- Goldman Sachs Group Inc. reduced its 2008 and 2009 profit forecasts for companies in the Standard & Poor's 500 Index, citing slower U.S. economic growth and larger losses for banks and brokerages.

David Kostin, who leads Goldman's New York-based portfolio strategy team, cut his 2008 S&P 500 profit forecast by 9.7 percent to $65 and his 2009 estimate by 9.3 percent to $68.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aX.L37mmsROM&refer=home

Go Bloomberg!

Bloomberg News asked a U.S. court today to force the Federal Reserve to disclose securities the central bank is accepting on behalf of American taxpayers as collateral for $1.5 trillion of loans to banks.

The lawsuit is based on the U.S. Freedom of Information Act ...

``The American taxpayer is entitled to know the risks, costs and methodology associated with the unprecedented government bailout of the U.S. financial industry,'' said Matthew Winkler, the editor-in-chief of Bloomberg News ...

Poll Results Spur Infrastructure

VOTERS APPROVED BILLIONS of dollars in state bond issues backing major proposed infrastructure projects and programs across the U.S. as well as other initiatives, which we expect will have positive long-term implications for select companies in our coverage universe.

Although the timing of construction on these projects is not likely to begin for several months or years, and is also contingent on demand for new issues in the municipal bond markets, we believe several companies within our coverage universe could ultimately benefit. We highlight some of the major approved propositions and potential beneficiaries within the Engineering & Construction and Construction Products groups below.

http://online.barrons.com/article/SB122592284195102711.html?mod=b_hpp_9_0002_b_online_exclusives_tab_left

GM....not good times...but wait...The GOVT will pay for it!

Even if GM implements the planned operating actions that are substantially within its control, GM's estimated liquidity during the remainder of 2008 will approach the minimum amount necessary to operate its business. Looking into the first two quarters of 2009, even with its planned actions, the company's estimated liquidity will fall significantly short of that amount unless economic and automotive industry conditions significantly improve, it receives substantial proceeds from asset sales, takes more aggressive working capital initiatives, gains access to capital markets and other private sources of funding, receives government funding under one or more current or future programs, or some combination of the foregoing.
emphasis added