NEW YORK (Reuters) - "Stocks tumbled on Friday, wrapping up their worst week since a global sell-off in February amid fears that trouble at two Bear Stearns hedge funds may signal worse problems lie ahead for credit markets.

      Investors also were rattled by news that Democrats in the U.S. Congress introduced legislation to end a tax advantage for investment fund managers as well as a jump in volatility ahead of the rebalancing of several important benchmark indexes.

      The session's losses did not derail the market debut of private equity firm Blackstone Group LP (BX.N: Quote, Profile, Research), which surged over 13 percent following the biggest U.S. initial public offering in five years.

      However, the broader financial sector did not fare nearly as well. The S&P financials group (.GSPF: Quote, Profile, Research) sank to a two-month low as efforts by Bear Stearns Cos. (BSC.N: Quote, Profile, Research) to rescue one of two ailing hedge funds with steep losses on subprime mortgage bonds focused attention on troubles in the sector.

      Investors worry Bear's problems could presage a credit crunch that would stall the takeover boom that has powered the stock indexes to all-time highs.

      "This shows that the subprime market is not some funny little area, this is serious stuff and has the potential of upsetting a lot of apple carts," said Gary Shilling, president of A. Gary Shilling & Co. in Springfield, New Jersey. "There are a lot of players in this game, everybody was involved because it was a very lucrative market.".."

      Everyone's pining to hedge their nestegg; stat.  I wonder why.

• Ed and Elaine Brown are convicted of tax evasion [in absentia - ed]
• They have barricaded themselves in their New Hampshire 'compound' [home]
• The couple 'taunts' police with references to 1992 Ruby Ridge shootout
• Tense neighbors fear the standoff could end violently

     PLAINFIELD, New Hampshire (AP) -- "To avoid serving prison sentences for tax evasion, Ed Brown and his wife, Elaine, have locked themselves off from the world on their own terms.

      From behind the 8-inch concrete walls of their 110-acre hilltop compound, the couple taunt police and SWAT teams and play to reporters and government-haters with references to past standoffs that turned deadly.

      Residents want the Browns' circus to end before their small town along the Connecticut River becomes the next Ruby Ridge or Waco.

      The Browns raised the specter of the first case, the 1992 shootout at an Idaho property called Ruby Ridge, by holding a news conference Monday with Randy Weaver, whose wife and child were killed there along with a deputy U.S. marshal.

      Ed Brown warned authorities they wouldn't take him alive: "We either walk out of here free or we die."

      The Browns were sentenced in absentia to 63-month prison sentences in April, after being convicted of conspiring to evade taxes on nearly $1.9 million in Elaine Brown's income and of plotting to disguise large financial transactions.

      Though they have refused to leave the compound, U.S. Marshal Stephen Monier insists he has no plans to raid it to make them serve their time and will instead seek a peaceful surrender.

      Expert observers praise the authorities' hands-off approach, but patience is wearing thin for Plainfield's 2,400 residents. Town selectmen recently asked Monier to stop the influx of militiamen and other anti-government groups to the Browns' home and to bring the couple to justice.

      "While we understand and support efforts to achieve a quiet resolution to this matter, the longer the Browns remain at large the better the chance, in our view, that our local police force will be involved in an incident with them or their group of supporters," the letter reads. "In short, we believe that it is time that definitive action be taken."

      It's a sentiment echoed throughout the town.

      "The people of Plainfield feel the whole thing has been mismanaged from the get-go," says Stephen Taylor, a Plainfield native who is state agriculture commissioner. "He's got this band of loonies up there right now. There's this constant traffic and helicopters overhead and everything. Goddamn crazies."

      The town south of bustling Lebanon has a "live-and-let-live" reputation that no one wants linked to the Browns, Taylor said.

      "Everybody feels a tiny bit of embarrassment. This is what we're going to be known for?" Taylor said. "We don't want to be known for this."

      The Browns' home on an isolated dirt roads includes a turret that offers a 360-degree view of the property and a driveway that is sometimes barricaded with SUVs.

      Ed Brown, a retired exterminator, and his wife, a dentist, have bragged that the compound is self-sufficient and capable of running entirely on solar, wind and geothermal energies.

      While saying repeatedly that he has no interest in harming the Browns or their supporters, Monier has not said what he does plan to do.

      He says the massive law enforcement turnout on June 7, complete with roadblocks and planes, was for surveillance of the compound while agents seized the Lebanon building that housed Elaine Brown's dental practice.

      But Ed Brown and many town residents believe it was a botched raid that apparently had to be called off when someone walking a dog stumbled onto federal agents in camouflage near the home..."

      The bear had snatched the family's cooler from their campsite in a national forest in northern Georgia. The 300-pound black bear was taking its loot back into the woods when Chris Everhart's 6-year-old son threw a shovel at it.

      Everhart says the bear started charging, so he grabbed the first thing he could find, which happened to be a log from the family's firewood.

      Everhart lobbed the chunk of wood, hitting the bear in the head and killing it.

      "(I) threw it at it and it happened to hit the bear in the head," Everhart said. "I thought it just knocked it out but it actually ended up killing the bear."

      The close call earned Everhart bragging rights — and a ticket. Park authorities say he didn't properly secure his campsite..."

     Minnesota (Star Tribune) - "Box upon box of pasta and rice, a couple hundred cans of fruits and vegetables, 120 gallons of water. Powdered milk. A first aid kit. A lantern. A weather radio. Plastic sheeting. Duct tape. Bleach.

      All in your basement.

      State health and public safety officials want Minnesotans to stock up in case of a flu pandemic, terrorism emergency or other widespread disaster. They've launched a $500,000 state campaign dubbed "Code Ready" encouraging Minnesotans to develop plans of action and assemble survival kits for emergencies small and large -- from three days to a year.

      The suggested stored servings of food for mom, dad and two kids for a month rivals the inventory of a small minimart: 780 of grain, 240 of fruit, 360 of vegetables, 360 of dairy and 660 of protein foods such as meat, dried beans and nuts.

      "It's ridiculous. It's just way too much stuff for anybody to have at home. I can't imagine what they're having us prepare for," said Tracy Eberly, who lives in south Minneapolis. "If society breaks down to the point where we need all that food, trust me, we've got other problems."

      State officials say they understand people's ability to store things will vary. And while there's no imminent threat of disaster, they're doing the campaign as part of a continuing effort to improve readiness.

      Funded by the Legislature last year, the campaign is being advertised on billboards, radio and through "viral marketing" with teams in a Code Ready SUV canvassing the state.

      That's one state that's taking Readiness Seriously.  I guess 1 out of 50 isn't all THAT bad.  Some are still way better than others.

     LONDON (Reuters) - "A spike in European credit spreads may be the start of a deep and long-lasting correction, or just another blip as fears about the U.S. subprime market and higher rates unnerve investors.

      U.S. sub-prime mortgage sector woes have resurfaced after several Wall street banks unwound positions in two Bear Stearns (BSC.N: Quote, Profile, Research) hedge funds that were heavily invested in the riskiest U.S. home loans.

      That has added to recent worries about rising interest rates, after the yield on 10-year benchmark U.S. Treasuries <US10YT=RR> shot up to five-year highs around 5.30 percent earlier this month.

      Some strategists, however, said the subprime issue was one that for now should not significantly impact European credit markets.

      "Clearly what's happened overnight is that unwinds can make a difference to credit. But at the margin I am surprised that Europe has reacted as negatively as it has," said Jim Reid, credit strategist at Deutsche Bank in London.

      The iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, jumped about 18 basis points wider to 216 basis points on Thursday following a significant widening in U.S. credit across the board overnight.

      The index had widened to near 220 basis points last week on the back of worries about higher interest rates and the impact they might have on corporate profits, but recovered to below the key 200 mark as those fears receded.

     NEW YORK (Reuters) - "U.S. Federal Reserve policy makers want to shift their emphasis away from current benign inflation to uncertainty about future price pressures, and are debating whether to stop calling inflation "elevated" in their policy statements, The Wall Street Journal reported on Thursday.

      The Journal's Greg Ip, in an analysis ahead of next week's Fed meeting on interest rates, wrote that Fed officials appear on hold for at least the next several months.

      Data due next week is likely to show that near-term inflation is staying within policy makers' comfort zone of 1 percent to 2 percent growth, and the Fed is likely to express concern that its long-term forecast of moderate inflation could go off track.

      "The Fed is still worried about inflation going higher, though less so than a few months ago," according to the analysis.

      Housing costs are contributing less to inflation because of a higher supply of vacant homes, and energy prices, while high, are still below last year's peaks. On the other hand, a lack of spare capacity in the economy and low unemployment may push up wages and prices, the Journal said.

      The Fed is widely expected to keep rates unchanged at 5.25 percent at next week's meeting..."

      Mincing words and sawing sawdust.  The Fed (Which is a private banking organization in control of all of the U.S. currency and interest rates) sucks.

     ANCHORAGE, Alaska (Fox) —  "A 2,500-acre fire burning on the Kenai Peninsula about 30 miles north of Homer started when sparks from a grinder being used to sharpen a shovel fell into dry grass, Division of Forestry officials said Wednesday.

      The Caribou Hills fire in a popular recreation area more than doubled in size throughout the day, and officials said it doesn't seem to be slowing down. Large amounts of smoke and ash were reported in Homer, but officials said the town is in no immediate danger.

      A Homer Electric Association power transmission line was in the fire's path and is assumed to have been destroyed despite efforts to save it, said Kris Eriksen, a Division of Forestry spokeswoman. Retardant is being dropped on the area and utility officials will assess damage when the fire clears the area.

      The federal suit against State Farm represents a new legal strategy for attorney Richard "Dickie" Scruggs, who has played a prominent role in challenging the insurance industry for its handling of Katrina claims.

      Hundreds of homeowners in Mississippi and Louisiana have sued their insurers for denying their claims after the Aug. 29, 2005, storm. The suits typically accuse insurers of bad faith and breach of contract for refusing to pay for damage from Katrina's storm surge..."

     BEIJING (Reuters) - "Globalization has lifted millions out of poverty and had many positive effects, but it has a dark side and free trade does not always mean economic growth, World Trade Organization head Pascal Lamy said on Wednesday.

      Speaking ahead of an eleventh-hour effort to rescue global trade talks, Lamy told a forum in Beijing: "The speed of globalization is affecting our social fabric in a much harsher way than in previous stages of globalization."

      It was the second such warning in as many days.

      The Organization for Economic Co-operation and Development said on Tuesday governments needed to address public concern over jobs and pay in a world being rapidly transformed by technology, cheap transport and communications and the rise of vast pools of cheap labor.

      "If globalization has benefited some individuals, it has also weakened the position of many others, in particular the weakest and poorest among us, whether in developed or developing countries," Lamy said.

      "Hence, one of the most important challenges of our generation is to ensure that the benefits of globalization are more fairly and widely shared, and in particular that they reach more people in developing countries," he added.

      Globalization is the pipe-dream of fascists.  Sovereign, free people of the world will not bow to any globalist agenda.  As far as I can tell, there are NO benefits to Globalization.

     DENVER (Reuters) - "Sparked by lightning and fanned by erratic winds, a wildfire in western Colorado has spread to within a half mile of a 400-home subdivision, forcing evacuations, fire officials said on Tuesday.

      Residents of 30 houses in the path of the 350-acre (141 hectare) blaze near Glenwood Springs, about 155 miles west of Denver, have been ordered to leave and the remaining residents have been warned to prepare for evacuation, said Larry Helmerick of the Rocky Mountain Coordination Center.

      "The fire is crowning and torching and making a run today," Helmerick said. "It is real active."

      Helmerick said high temperatures, low humidity and gusting winds are hampering firefighting efforts.

      About 200 firefighters are on scene, with air tankers and helicopters making fire retardant and water drops. The fire is about 15 percent contained.

      A second, larger fire has blackened 1,000 acres (404 hectares) of federal land in a remote area about 50 miles (80 km) east of the Utah border, said Mel Lloyd, spokeswoman for the U.S. Bureau of Land Management. Seventy-five firefighters are battling that fire from the ground and air.

      Lloyd said weather would dictate how much progress was made on Tuesday but conditions so far have not been favorable, Lloyd said. "The weather forecast calls for high winds and 100-degree temperatures," she said.

      If confirmed, this would be the third time in a month Pyongyang has fired missiles into waters off its coast.

      The news came as US nuclear envoy Christopher Hill confirmed that North Korea now had access to funds that had been frozen in a Macau bank.

      Pyongyang's military programme, and its nuclear ambitions, have long alarmed the international community.

     NEW YORK (Fortune) -- "During the height of the real estate bubble, mortgage lenders were often shameless in how they pursued new business. Whether it was jacking up hidden closing costs to make loans appear cheaper than they were or using absurdly-low teaser rates on option- or interest-only ARMs to get customers in the door, lenders made owning a home seem easy.

      Too easy. Fast forward a couple years, and mortgage defaults are skyrocketing. Foreclosures were up 90 percent in May alone, according to RealtyTrac. And lenders are finally realizing that coaxing consumers to borrow more than they can really afford is, as business strategies go, just plain dumb.

      What's a mortgage marketing maven to do? Well, bereft of their teaser rates, the marketing whizzes of at least one major lender apparently decided that scare tactics are the way to go.

      Just consider the direct-mail solicitation I recently received from GMAC Mortgage. The letter was addressed to me as a "Washington Mutual Customer"- I have a 30-year, fixed-rate mortgage with WaMu - and it began ominously: "You've probably read about it in the newspaper or seen it on the nightly television news. Many mortgage lenders all across the country are heading for financial trouble because they have made too many questionable loans. Some lenders may even go out of business. And what will become of the people who trusted those lenders if that happens?"

      Then came the kicker: "Allow us to help you refinance your mortgage with the rate and term that best suits your needs."

      GMAC's pitch is absurd on so many levels I barely know where to begin. First off, the letter implies if you have a conforming mortgage, as I do, that you could somehow lose your mortgage should your lender go bankrupt. That's simply untrue. Sure, there could be some servicing glitches should your loan be acquired by another bank, but that's more an annoyance than a genuine financial safety issue..."

      Being in debt up to one's eyeballs isn't all it is cracked up to be; now on both sides of the issue.

     NEW YORK (Reuters) - "Oil surged above $72 a barrel on Monday to a 10-month high as a general strike loomed in Nigeria and attacks on oil installations cut more supply from the world's eighth largest exporter.

       Low U.S. gasoline inventories at a time of peak summer demand also is boosting the market, analysts said, along with a possible oil workers' strike in Brazil next month and OPEC's reluctance to boost oil output.

      "Gasoline will be supportive all summer," said Mike Wittner of investment bank Calyon. "There's really no bearish factors to pull the market down."

       London Brent (LCOc1: Quote, Profile, Research) crude for August, seen as more representative of global prices, settled up 71 cents to $72.18 a barrel, the highest level since August 28.

       U.S. crude for July (CLc1: Quote, Profile, Research) settled up $1.09 to $69.09 a barrel, after hitting a nine-month high of $69.15 earlier.

       Brent climbed as far as $72.25, the highest since August 28, 2006. It has rallied from around $50 in January and analysts say the bull run may have some way to go yet..."

      A 5-year-old girl and her grandmother were swept to their deaths after the family’s mobile home was carried off its foundation and lodged against a bridge above a swollen creek in this city along the Oklahoma border, said Cpl. Mike Linnell of the Texas Department of Public Safety.

      The girl’s 2-year-old sister was among at least five people still missing in the Gainesville area.

      In the Fort Worth suburb of Haltom City, a 4-year-old girl died after her family attempted to escaped the flooding in a boat that floated by, but it flipped over and the girl was lost into the rushing water, KTVT-TV reported.

      The girl’s mother, Natasha Collins, told KXAS-TV of Dallas that the last time she saw her daughter was “when the current took her out of my arms. We reached the boat, and the boat capsized.”

      Rescue crews arrived later to help the Collins family. Alexanderia Collins’ body was found more than two hours later..."

     MELBOURNE, Australia (AP) -- "A gunman opened fire on a downtown street during the morning rush hour Monday in Australia's second largest city, killing one man and critically wounding two other people while scattering terrified commuters, police said.

      The suspect fled, and police launched a manhunt in the southern city of Melbourne, closing several streets and advising people to stay indoors as tactical officers armed with shotguns fanned out and helicopters joined the search overhead.

      Police said the shooting did not appear to be a random act, and that it was believed a woman who was one of the victims knew the gunman.

      The other two victims -- including the one who died -- were male bystanders who came to the aid of the woman during an altercation with a man who pulled out a gun, witnesses said.

      "A girl came out of a building over the road, she was screaming and a guy had her by the hair," Ross Murchie told Australian Broadcasting Corp.

      "She tried to grab hold of a taxi that was going by and the couple of bystanders went over to ask what was happening," Murchie said. "He let go of her hair, pulled out a gun and shot them all."

      Inspector Steve Martin said the woman and one of the men who went to assist were rushed to hospital in critical condition with gunshot wounds to their chests. The third victim died at the scene, he said.

      The shooting occurred on the corner of Flinders Lane and William Streets in central Melbourne around 8 a.m. Monday (2200 Sunday), sending hundreds of frightened commuters fleeing. A short time later, police said they had recovered a handgun and a jacket believed to have been worn by the attacker, who remained at large.

      Prime Minister John Howard declined to comment directly on the shooting because he was not aware of the details, but said he was willing to open discussions on further tightening gun control laws with state leaders, who have responsibility for policing them.

      Justice Minister David Johnston said Australian firearms laws already were very tight and that it was likely the gun used in Monday's shooting was obtained illegally.

      "It is very, very, difficult for a law-abiding citizen to obtain a handgun," Johnston said, adding: "If someone wants to purchase a concealable weapon on the black market they will probably be successful."

      Police said the gunman and the female victim may have been involved in a fight at a nightclub about 10 minutes before the shooting.

      But firearms are banned in Australia!  This is impossible!  Everyone knows that no one can get firearms in a society where they are illegal!  ([end sarcasm])

• Sources say a third rocket landed near U.N. post in Lebanon
• Hezbollah denies responsibility for attack
• Police: Rockets appear to have caused no casualties and only minor damage
• Attack marks first rockets to land in northern Israel since last summer
 

     JERUSALEM (CNN) -- "At least two Katyusha rockets fired from Lebanon landed near the northern Israeli town of Kiryat Shmona on Sunday, police and Israel Defense Forces said.

      Lebanese security sources later reported that another rocket fired from Lebanon never made it across the Israeli border and landed near an observation post operated by the U.N. Interim Force in Lebanon.

      A representative from the U.N. force called the attack a "serious violation of Security Council Resolution 1701 and of the cessation of the hostility agreement" that followed last year's war between Israel and Hezbollah militants.

      "An investigation is under way," the representative said, asking all parties to "exercise maximum restraint."

      "There is a lot of concern in the agriculture community about what you can call the negotiating landscape," said Don Phillips, trade adviser for the American Sugar Alliance.

      That uneasiness was explicit in a letter that a dozen commodity groups sent this month to President George W. Bush, warning him against accepting a deal with major reductions in U.S. subsidies and only slim cuts in other countries' tariffs.

      "There's a real concern that the market access that was promised is not forthcoming," Phillips said.