Altria Earnings

"Altria Group, Inc. (NYSE: MO) today announced third-quarter diluted earnings per share from continuing operations of $1.24, up $0.19 or 18.1% versus the prior year, including favorable tax items of $0.05 per share and charges of $0.02 per share for asset impairment, exit and implementation costs, as well as other items detailed on the attached Schedule 7."

"'In the third quarter, we continued to witness improvement in our business fundamentals, which generated robust earnings growth,' said Louis C. Camilleri, chairman and chief executive officer of Altria Group, Inc. 'In addition, we took numerous steps to accelerate our growth by investing behind product innovation and announcing our intention to pursue a further restructuring of our company.'"

From Altria's website -- www.altria.com:

PM USA tobacco marketshare: 50.6%
PM USA third quarter revenue: $4 Billion, which is up 3.2% from Q3 2006
PM USA third quarter cigarette shipment volume: 47.1 Billion units, which is down 1% from Q3 2006

PM International third quarter revenue: $5.9 Billion, which is up 9.3% from Q3 2006
PM International third quarter cigarette shipment volume: 217.2 Billion units, which is up 0.6% from Q3 2006 (taking into account an aquisition in Pakistan). If we want to be picky and not count this acquisition, volume was actually down 4 billion units or 1.9%. If you want the country break down, you will need to read the entire earnings statement from their website.

In related Altria news:

"During the third quarter of 2007 Altria Group, Inc. increased its regular quarterly dividend by 8.7% to $0.75 per common share, which represents an annualized rate of $3.00 per common share."

Banks Create Money For a Fund to Bail Themselves Out

From The economist.com

"On Monday October 15th three of the largest banks launched the first big effort by the private sector to alleviate the [credit] crisis. Citigroup, JP Morgan Chase and Bank of America unveiled an agreement in principle for a fund, expected to be worth up to $100 billion, that would buy highly rated assets from troubled SIVs (structured investment vehicles). Other financial institutions are said to be considering joining. Although no government money will be available, America’s Treasury played an important role in the talks that led to the fund’s creation. The authorities worry that “disorderly” markets could drag down the economy."

This is still of course a temporary solution. The banks can create a false demand and trade each others junk for as long as they want. Eventually though, they will have to open up their books and show just what the assets are truly made of (or aren't made of), that will be the true day of reckoning. However when banks, who control and create the money supply, can form a $100 Billion fund to create a false market that day may be far in the distance.

The last part of the article is the best (emphasis added):

"Even those who support the fund admit that it is, at best, a temporary solution. As one banker puts it, it is about buying time so that the real problems facing the debt markets can be sorted out. In the case of asset-backed commercial paper, the two biggest are the inherently unstable structure of SIVs and their lack of transparency. Not only do they sit off their creators’ balance sheets but they do not even have to publish their holdings. Only when these underlying issues are addressed is confidence likely to return."

Lets see, when should we let everyone know that billions of dollars of assets are worth nothing, yet they have been the invisible profits that made up the last 5 years of earnings?

Phlegm

"Australian athletes have announced they will arrive in Beijing as late as possible because of concerns that the air quality might hinder their performance. Two weeks ago, two Ethiopian middle-distance running champions announced they would forgo some events because of the "disgusting weather and air pollution." New Zealand and American athletes say they will wear face masks if necessary. Even Jacques Rogge, president of the International Olympic Committee, warned that some endurance sports might be postponed if the pollution gets too bad."

"For athletes unaccustomed to Beijing's pollution, the assault can feel like 'an invisible wet rag that chokes your lungs,' Cassmassi said."

Yum.

Me Gusta El Amero!

Transcript From The Larry King Show:

"KING: E-mail from Mrs. Gonzalez in Elizabeth, New Jersey. "Mr. Fox, I would like to know how you feel about the possibility of having a Latin America united with one currency?"

FOX: Long term, very long term. What we propose together, President Bush and myself, it's ALCA, which is a trade union for all of the Americas. And everything was running fluently until Hugo Chavez came. He decided to isolate himself. He decided to combat the idea and destroy the idea...

KING: It's going to be like the euro dollar, you mean?

FOX: Well, that would be long, long term. I think the processes to go, first step into is trading agreement. And then further on, a new vision, like we are trying to do with NAFTA."

Many people show skeptisim on the formation of a North American Union which much like the European Union would be created by the formation of several North American countries. However, I think it is interesting that the outspoken former President of Mexico has come out and practically admitted that Mexico, the United States and others had at least been in talks of creating a unified currency. Whether an internet conspiracy or not, I think the conversation between Larry King and President Fox is at least somewhat telling. I guess only time will tell...

This Week in Congress Wasting Tax Payer Money

"A House committee rejected warnings from the Bush administration yesterday and approved a resolution condemning Turkey for committing genocide against Armenians during World War I, an act the White House said could jeopardize military operations in the Middle East."

"Mr. Bush spoke in a hastily arranged statement to reporters. 'We all deeply regret the tragic suffering of the Armenian people that began in 1915," he said. But 'this resolution is not the right response to these historic mass killings.'"

Armenia; Turkey; 1915; genocide. That sounds like it would make for a stirring debate in.... Armenia ... or .... Turkey ... in ... ohhh .... 1916. Even history class.

Why do our elected representatives spend time in 2007 debating a resolution condemning the genocide of Armenians at the hands of the Turks in 1915? I can see if maybe there was nothing going on in the US Capitol. Its a slow day; why not condemn genocide. Kinda makes sense. Makes it seem like we are doing something; kinda like that confused/pensive face that is made at work when the boss walks by. I'm thinking so hard I must be working. You cant think this hard and not be working.

The Federal government has slowly usurped all power from the states and sucked the life out of federalism and yet they still want more to do. What a bunch of over-achievers!

I think that Representative Hoyer from the glorious state of Maryland says it all:

"House Majority Leader Steny H. Hoyer, Maryland Democrat, said the resolution 'was about another government at another time, and should not be perceived ... as a reflection on the present government, the Turkish people or their present posture.'"

Exactly.

Put some spinners on that Hummer!

"The Army is offering cash bonuses of up to $35,000 to retain young officers serving in key specialties -- including military intelligence, infantry and aviation -- in an unprecedented bid to forestall a critical shortage of officer ranks that have been hit hard by frequent deployments to Iraq and Afghanistan."

"Army officials said that lengthy and repeated war-zone tours -- the top reason younger officers leave the service -- plus the need for thousands of new officers as the Army moves forward with expansion plans have contributed to a projected shortfall of about 3,000 captains and majors for every year through 2013."

Wow. This makes me even more upset that I am red/green color deficient.

"According to Army data, the overall attrition rate for captains averaged 12.2 percent from 1999 to 2007."

This seems like a really low number. If only one in every ten Army Captains chooses to leave the Army each year, that doesnt seem like chaos (I am assuming I've interpreted this number correctly). I guess the attrition rate could have been much lower until the past year or so as the war in Iraq dragged on and this could skew what may be a much higher rate now.

I wonder if this dilemma has made anyone in important positions question the Iraq war? I doubt it.

White House Leaks Al-Qaeda Tape Early, Ruins Years of Intelligence Work

From washingtonpost.com:

"A small private intelligence company that monitors Islamic terrorist groups obtained a new Osama bin Laden video ahead of its official release last month, and around 10 a.m. on Sept. 7, it notified the Bush administration of its secret acquisition. It gave two senior officials access on the condition that the officials not reveal they had it until the al-Qaeda release.

Within 20 minutes, a range of intelligence agencies had begun downloading it from the company's Web site. By midafternoon that day, the video and a transcript of its audio track had been leaked from within the Bush administration to cable television news and broadcast worldwide.

The founder of the company, the SITE Intelligence Group, says this premature disclosure tipped al-Qaeda to a security breach and destroyed a years-long surveillance operation that the company has used to intercept and pass along secret messages, videos and advance warnings of suicide bombings from the terrorist group's communications network."

Are we even surprised at this type of stuff anymore?