The Markets

• As flu fear subsides the futures rally.  A higher opening is indicated.  As noted here many times over the last few weeks, this market shows tendencies to accept higher levels of risk.  That is seen in higher and stronger closes, sideways action in the face of fearful exogenous events, and strength on so-so corporate earnings releases.
• A whopping decline of 6.1% in GDP may temper things a bit. And bring us back to the reality of declining house values, unemployment, etc.  The news has pared gains in futures.
• Shareholder activism is alive and becoming stronger.  Ken Lewis of B of A is fighting for his corporate life today and tomorrow.  No less than the WSJ suggests it is time for him to go.  Lewis’s decision to pay 1.8x book for Merrill (at a time Goldman Sachs was trading for the same) as well as his massively ill-timed purchase of Countrywide are sufficient reasons for his dismissal.  Calpers, the powerful California pension fund, is withholding it’s vote, for example.  Elsewhere, Exxon is fighting several shareholder initiatives.  One proposes to move their corporate registration from New Jersey to North Dakota.  The initiative is to, primarily, allow shareholders the approval of executive compensation.  As one one expect, Exxon is recommending shareholders vote no to the proposal.
• Arlen Spector’s abandonment of the Republican party is kind of pathetic.  The Senate increasingly has become a refuge of old men stroking each other.  Almost all corporations have age limitations for chief executives.  Should the Senate?
• If you remember this you are too old: http://twitpic.com/47kay

Today is the last of my tutoring for the year.  My fourth grade charges have worked hard and, hopefully, made some progress.  Their EOG, End of Grade, tests are in a week.  Make it a great Thursday!

Oh, here is the scientific evidence of how Swine Flu is spread: