FRIDAY, AUGUST 1, 2008..... Wall Street sank Thursday, after weak readings on economic growth and the job market touched off renewed concerns about the financial health of businesses and consumers. The Dow Jones industrial average fell more than 200 points. The Commerce Department's report that gross domestic product grew at a 1.9 percent pace in the second quarter disappointed investors. Economists polled by Thomson Financial/IFR had expected growth of 2.4 percent in the broad measure of the economy's health. Investors were also concerned about Labor Department data saying that the number of people seeking jobless benefits jumped to the highest level in five years. Economists warned the weekly figures can be volatile, however, and some dismissed them as an aberration. A $4.5 billion cash offer from Bristol-Myers Squibb Co. for its cancer drug partner ImClone Systems Inc. kept the Nasdaq composite index from falling as sharply as other indexes. In other positive news, oil prices declined, and an index of Midwestern business activity indicated growth. But Wall Street could not shake off its worries about the economy -- particularly after sobering remarks from Former Federal Reserve Chairman Alan Greenspan on CNBC late in the afternoon. Greenspan said he would be more surprised if the United States did not enter recession than if it did. The comments came after Treasury Secretary Henry Paulson said in a speech in Washington that the economy will continue to grow at a moderate pace for the rest of the year, and the government's $168 billion stimulus package had helped grease the economy's wheels.

But Larry Smith, chief investment officer at Third Wave Global Investors in Greenwich, Conn., said tightness in credit markets and high oil prices continue to weigh on the economy and the stimulus package won't deliver a permanent fix. "Tax rebates have been a very effective way of propping up the economy in the second quarter, and less so in the third quarter," Smith said. "To fix the economic growth problems, you have to restore liquidity to the system." According to preliminary calculations, the Dow Jones industrial average fell 205.67, or 1.78 percent, to 11,378.02, continuing its string of erratic, triple-digit daily swings. Broader stock indicators also declined. The Standard & Poor's 500 index fell 16.88, or 1.31 percent, to 1,267.38, while the Nasdaq fell 4.17, or 0.18 percent, to 2,325.55. During the month of July, the Dow inched up 0.25 percent, the S&P fell 0.99 percent, and the Nasdaq rose 1.42 percent. It was certainly a better showing than in June, during which the Dow dropped 10.19 percent, the S&P fell 8.60 percent, and the Nasdaq lost 9.10 percent.

Bond prices jumped following the economic readings. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.95 percent from 4.05 percent late Wednesday. The dollar was mixed against other major currencies, while gold prices rose. Light, sweet crude fell $2.69 to settle at $124.08 a barrel on the New York Mercantile Exchange after rising more than $4.50 on Wednesday. Oil has fallen more than $20 since hitting a high above $147 on July 11, raising hopes that inflation pressures could ease. Thursday's stock market pullback follows bets investors made this week that the beaten-down financial sector would rebound and that the Labor Department's employment report on Friday would show a less gloomy jobs market. But other stock rallies have fizzled in recent weeks. Investors have remained concerned about the housing and credit markets, the health of financial companies and the effect of high commodities prices.

The latest GDP reading, which reflected consumers cashing tax rebate checks, still shows the economy grew at a faster pace than the weak 0.9 percent seen in the first quarter. But revised numbers also revealed for the first time that the economy shrank in the fourth quarter last year. The mixed economic figures are making it hard for investors to have much conviction, observers say. "I think in the short run, it's going to be a tug-of-war between the optimists and the pessimists," said Jack Caffrey, equities strategist at JPMorgan Private Bank. "I think both sides are going to be able to find enough information to support their case." At some point one side will give in, he said. "The challenge is, you can't identify what the catalyst is that will change psychology."

Investors sifted through a flurry of quarterly profit reports for clues about the economy. Exxon Mobil Corp. reported second-quarter earnings of $11.68 billion, the largest quarterly profit ever by a U.S. corporation. But the per-share earnings fell well short of Wall Street's forecast, which assumed that record crude prices would push earnings even higher. The stock fell $3.95, or 4.7 percent, to $80.43 and weighed on the Dow industrials. The Walt Disney Co. fell $1.32, or 4.2 percent, to $30.35 after the company reported a slowdown in the U.S. advertising market in the current quarter and weak box office results in the period that ended in June. Motorola Inc. jumped 96 cents, or 12.5 percent, to $8.64 after posting a surprise profit for its second quarter. The company said it shipped more cell phones than in the first quarter.

Eastman Kodak Co. reported a second-quarter profit but the results missed Wall Street's forecast. The stock declined $1.13, or 7.2 percent, to $14.64. In other news, Wall Street applauded Bristol-Myers' offer $60 per share for ImClone, a 30 percent premium to ImClone's closing price of $46.44 Wednesday. Bristol-Myers, which already owns about 17 percent of ImClone, is a U.S. partner for the colon and head and neck cancer drug Erbitux. ImClone surged $17.49, or 37.7 percent, to $63.93. Bristol-Myers slipped 39 cents to $21.12. Declining issues outpaced advancers by about 3 to 2 on the New York Stock Exchange, where volume came to 1.45 billion shares.

Top Stories

Shutterfly Discusses Q2 Results and Outlook;
Falls to New 52-Week Low
Shares of Shutterfly, Inc. (SFLY) hit a new 52-week low on Thursday after the Company reported second quarter 2008 financial results for the period ended June 30, 2008. Net revenues totaled $35.4 million, a 19% year-over-year increase. GAAP net loss per diluted share was $(0.16), as compared to $(0.10) in Q2 2007. The Company’s financial expectations for the third quarter included net revenues to range from $33 million to $36 million and GAAP diluted loss per share to range from ($0.15) to ($0.30). For FY08, the Company expects net revenues to range from $225 million to $240 million and GAAP diluted income per share to range from $0.01 to $0.20. On a non-GAAP basis, diluted income per share is expected to range from $0.30 to $0.50. Jeffrey Housenbold, President and CEO of Shutterfly, explained in a conference Wednesday night, "Despite a tough economic enviroment, we delivered our 30th consecutive quarter of year-over-year revenue growth and better-than-expected gross and net margins. While we are not satisfied with our top line growth, we are confident that our compelling suite of products and services and continued innovation positions us well to continue leading in these early and large markets." "We are focused on improving free cash flow in a sustained and long term manner. During the first half of 2008, and especially Q2, we are beginning to realize leverage in our business model. This leverage and our disciplined expense management demonstrates that we can achieve sustained margin improvement in a competitive marketplace." Mr. Housenbold added, "We continue to build for the future. We are strengthening our brand and franchise, and we are innovating with new products and services to increase our customers’ loyalty and evangelism of Shutterfly. We are also incubating a sponsorship in advertising and commercial printing business. If successful, both initiatives have the potential to deliver new revenue streams, higher margins and increased free cash flow." "we are making smart and well-considered decisions that balance both the short and long term objectives. We are building on our market leadership by investing in products, services, people and processes. We are demonstrating strong fiscal and operational discipline, and we are subjecting every aspect of the business to intense cost management scrutiny." Mark Rubash, CFO of Shutterfly, added, "We have been working very hard to insure that every dollar goes to its highest and best use. As evidenced by our improved profitability this quarter, these efforts are beginning to yield sustainable operating leverage. We are improving our manufacturing cost structure; increasing our use of outsourcing; implementing more efficient production techniques; and leveraging our scale across all of our materials and shipping vendors. On the technology side, we have improved our platform architecture; integrated new storage solutions; and organized for rapid innovation and development cycles. We have also optimized our sales and marketing initiatives." He concluded, "Although we don’t know how long these economic conditions will continue, we are confident in our strategy. We will continue to build on our long track record of industry-leading innovation, quality and execution." Piper Jaffray downgraded SFLY to Neutral from Buy and cut the price target to $10 from $18. The firm said it downgraded the shares to reflect slower consumer spending and the high negative operating leverage implied in Q3 guidance. Intellect Neurosciences Obtains EU Patent re ANTISENILIN(R) Monoclonal Antibody Intellect Neurosciences, Inc. (ILNS) has obtained a European patent relating to the Company’s ANTISENILIN(R) monoclonal antibody platform for the treatment of Alzheimer’s disease. The claims of the issued patent cover the ANTISENILIN(R) "free-end specific" antibodies that bind to beta amyloid and use of the antibodies in preventing or inhibiting the progression of Alzheimer’s disease. The technology is designed to promote the clearance of beta amyloid which accumulates to reach toxic concentrations in the brains of Alzheimer’s patients while reducing the potential for adverse side-effects. Importantly, such drugs avoid binding and thereby potentially interfering with the functions of the Amyloid Precursor Protein, which is an important physiological regulator in the body implicated in controlling essential brain functions as well as blood coagulation. The Company has granted a royalty-bearing license to Wyeth and Elan Pharma International Ltd. regarding patents and patent applications related to antibodies and methods of treatment for Alzheimer’s disease, including Bapineuzumab, currently in Phase 3 clinical trials.

Today's Headlines

MANAGEMENT COMMENTS ON RECORD Q2 EARNINGS: Shares of iCAD, Inc. (ICAD) were higher on Thursday after the Company reported record financial results for the three months ended June 30, 2008. Total revenue for the second quarter of 2008 was $10.5M, a 73 percent increase compared with total revenue of $6.1M for the second quarter of 2007. The Company posted net income of $2.4M, or $0.06 per basic share, compared with a net loss of ($866,000) or ($0.02) per basic share in the second quarter of 2007. The Company expects total revenue for the second half of 2008 to be in the range of $21M to $22M. On a full year basis, total revenue is projected to be in the range of $38M to $39M. The Company also expects to achieve second half gross margins consistent with or better than Q2 of 2008 of 83.6 percent, and anticipates operating expenses for the second half to be between $14.5M and $15.3M and weighted more heavily in the fourth quarter. Darlene Deptula-Hicks, Executive Vice President and CFO of iCAD, commented in a conference call, "We delivered extraordinary revenue growth this quarter along with strong bottom line earnings and positive cash flow. These record results represent our eighth consecutive quarter of comparative financial improvement." Ken Ferry, iCAD’s President and CEO, added, "These results underscore that our growth strategy and financial controls are on track in delivering meaningful results. We believe that we are well-positioned to take the business to the next level of growth and continued profitability for the rest of 2008 and beyond." "Even with this continued strong growth, only 38% of U.S. mammography systems have converted to digital technology, leaving considerable room for growth in the coming years. In addition, our international business demonstrated strong growth this quarter. In the first half of 2008, our international business has nearly doubled versus last year," noted Mr. Ferry. He concluded, "Our goal moving forward is to deliver strong net earnings in the low-to-mid teens range, while increasing investment in new business segments. In achieving this balance, we believe that we can expand our addressable market in a timely manner and sustain our growth in earnings trajectory."

ENTERS AGREEMENT TO ACQUIRE FIVE COMMUNITIES FOR $62.5M: Emeritus Corporation (ESC) has entered into an agreement to acquire five communities currently leased by the Company for a purchase price of $62.5 million, plus estimated closing costs of approximately $2.8 million. The five communities are comprised of 432 units and are located in Ohio, Florida, California and Michigan. The Company intends to finance this transaction through mortgage debt equal to approximately 75% of the purchase price, seller-provided financing of $10.0 million, and the balance from the refund of certain security deposits and cash on hand. The seller-provided financing is for a term of 3 years at an annual interest rate of 8.0%, increasing annually by 25 basis points, and monthly payments equal to accrued interest plus a $40,000 monthly principal payment.

ACQUIRES TIAPAMIL COMPOUND: Ore Pharmaceuticals Inc. (ORXE) has acquired from Roche the clinical-stage compound tiapamil. Ore Pharmaceuticals had previously identified potentially novel therapeutic uses for tiapamil in central nervous system (CNS) disease and recently filed for patent protection regarding the use of the compound. The Company plans to further develop tiapamil, and will select the most appropriate of several potential indications, prepare for Phase II clinical trials, and initiate out-licensing activities.

COURT ISSUES MARKMAN ORDER IN LITIGATION: Cabot Microelectronics Corporation (CCMP) announced that the United States District Court for the District of Arizona issued its patent claim construction, or "Markman" Order, in Cabot Microelectronics’ ongoing patent infringement litigation against DuPont Air Products NanoMaterials, LLC. In a Markman ruling, a district court hearing a patent infringement case interprets and rules on the scope and meaning of disputed patent claim language regarding the patents in suit. In the recently issued Markman Order, the Court adopted interpretations that Cabot Microelectronics believes are favorable to Cabot Microelectronics on all claim terms that were in dispute in the litigation. The litigation involves DA Nano’s manufacture and marketing of certain CCMP slurries that the Company believes infringe five patents owned by Cabot Microelectronics. The affected DA Nano products include certain products used for tungsten CMP. Cabot Microelectronics is seeking damages and injunctive relief against DA Nano in the litigation.

ANNOUNCES ACQUISITION: Ness Technologies, Inc. (NSTC) has signed a share purchase agreement to acquire 100% of the shares of Logos a.s., a privately-held, Czech-based leading IT services and consulting company. For the fiscal year ended March 31, 2008, Logos generated revenues of EUR29.7 million and was profitable. Logos has approximately 570 employees.

AWARDED 18.2M EURO MAINTENANCE AND REPAIR CONTRACT: Telvent (TLVT) has been awarded with the Maintenance and Repair of the Electronic Toll Registry System for the MTA Bridges and Tunnels E-ZPass System. The contract is valued at approximately 18.2 million euros. The contract involves the upgrade, enhancement, and maintenance of an E-ZPass electronic toll collection system, with electronic E-ZPass and manual collection lanes. Telvent will implement its Remote Operations and Maintenance System (ROMS), an operations and maintenance monitoring tool, which will improve maintenance and operations efforts, further increasing system availability for MTA Bridges and Tunnels E-ZPass patrons.

THURSDAY, JULY 31, 2008..... Wall Street soared for the second straight day Wednesday, rallying in the last hour of trading after a rebound in financial stocks and optimism about private sector jobs. Investors brushed off a sharp jump in oil prices. The Dow Jones industrials rose more than 180 points, bringing its two-day gain to more than 450. Bank and brokerage stocks, many trading at multiyear lows, turned higher and led the late advance. There was some relief in the market after the Federal Reserve said it would extend and expand its program to lend money to investment banks. The central bank's move reassured the market that the banks would have cash if they needed it. Investors have been worried that some of Wall Street's biggest names will be slashing prices on more of their assets -- and needing more money -- after Merrill Lynch & Co. unexpectedly announced a $5.7 billion write-down late Monday. "There's a growing sense that what we saw out of Merrill Lynch is the beginning of the end for the financial cleanup," said Craig Peckham, market strategist at Jefferies & Co. He added that the ADP number was also a good sign for the economy. Earlier, Automatic Data Processing said private sector employment rose by 9,000 this month. After seeing jobs disappear by the thousands in recent months, the stock market is eager for any insights into the Labor Department's take on the job market on Friday. The ADP news helped offset a big spike in the price of oil after a weekly Energy Department report on domestic supplies showed a surprise increase. Israeli Prime Minister Ehud Olmert's announcement that he plans to resign in September stirred concerns about the viability of Middle East peace efforts and rising tensions with Iran. Light, sweet crude rose $4.58 to settle at $126.77 on the New York Mercantile Exchange. Oil has fallen sharply, however, since hitting a high above $147 on July 11. A drop in oil prices Tuesday contributed to a huge gain on Wall Street. << MORE >>

WEDNESDAY, JULY 30, 2008..... Wall Street shot higher Tuesday, gaining back the previous session's sharp losses and then some, after a drop in oil prices and a rise in consumer confidence gave investors some hope for a letup in Americans' financial woes. The Dow Jones industrial average rose 266 points. Crude oil prices sank $2.54 to $122.19 a barrel on the New York Mercantile Exchange, extending their two-week-long retreat from record highs above $147. The prospect of lower energy costs for U.S. consumers, along with a modest uptick in the Conference Board's July index of consumer confidence to 51.9 from 51 in June, came as welcome news. Consumer spending accounts for more than two-thirds of U.S. economic activity. "The thinking is that oil prices are heading lower, and that's obviously a positive for the market," said Richard E. Cripps, chief market strategist for Stifel Nicolaus. A stock bounce was hardly unexpected, though, after the Dow lost nearly 240 points Monday on worries about the sagging financial sector. Wall Street is torn: Energy prices, if they continue on their downward path, could provide big relief to consumers and in turn help the economy, but credit losses keep mounting at the nation's major banks. The result is big swings in the market but little consistent direction. "We're living from one piece of news to the next," said Alan Gayle, senior investment strategist for RidgeWorth Capital Management. The market's volatility is likely to continue unless it gets further evidence that oil prices are, indeed, on their way down, and that banks have already seen the bulk of their losses. << MORE >>

MONDAY, JULY 28, 2008..... THE WEEK AHEAD: Investors head into the week with a bit more resolve that U.S. companies are doing a better-than-expected job managing their way through an economy stifled by unprecedented turmoil in the housing and credit markets. Wall Street is about midway through second-quarter earnings season, and the overall results haven't been as dreary as some analysts feared. About 61 percent of the Standard & Poor's 500 index companies reporting results so far have surpassed projections, and 72 percent of them were able to top last year's sales figures. Expectations were low for the quarter and that helped some companies beat forecasts. But if you strip out the market's problem child -- the financial sector -- S&P said companies are headed for a 10 percent growth rate from last year. "Regardless of the estimates or hype, a double-digit gain from non-financials is impressive -- in any economy," said Howard Silverblatt, S&P's senior index analyst. << MORE >>

FRIDAY, JULY 25, 2008..... Wall Street abruptly ended an earnings-driven rally and closed sharply lower Thursday after a steeper-than-expected decline in existing home sales and worries about the financial sector chilled the market's recent optimism. The major indexes fell about 2 percent, including the Dow Jones industrial average, which lost more than 275 points. The National Association of Realtors said sales resumed their decline in June after a slight rebound in May. Existing home sales declined by 2.6 percent in June, well beyond the 1 percent drop economists had forecast. Investors punished shares of homebuilders and financial companies Thursday because both sectors have struggled with the declining housing market. Alan Lancz, director at investment research group LanczGlobal, said investors are concluding that while financials had been oversold and were due for a rebound, problems remain with tight credit and souring mortgage debt. "You have the rally and you almost get the hangover now where you say 'You know, we're not out of the woods yet,'" he said. According to preliminary calculations, the Dow fell 283.10, or 2.43 percent, to 11,349.28. It was the biggest decline for the Dow since June 26. The pullback erased the nearly 170 points added in the two prior sessions. Last week, the Dow gained nearly 400 points. While some declines after the latest rally wouldn't have come as a surprise, the drop Thursday revealed fresh unease about the economy. << MORE >>

THURSDAY, JULY 24, 2008..... Stocks advanced for the second straight session Wednesday as another decline in oil prices and several upbeat profit reports eased some of Wall Street's concerns about the economy. Investors expect that a sustained pullback in oil prices would give a crucial boost to the economy. Crude has retreated as oil investors have worried that high prices and a sluggish economy are reducing demand. The government reported Wednesday that domestic inventories increased last week as consumers curbed their energy use. Oil is down more than $20 a barrel since hitting a record above $147 just weeks ago. A barrel of light, sweet crude fell $3.98 to settle at $124.44 a barrel on the New York Mercantile Exchange. While oil again tugged at stocks as it has for months, investors also examined a raft of earnings reports that indicated not all corporate profits were suffering because of the slower economy. That left some investors more upbeat about the prospects for the overall economy. AT&T Inc., McDonald's Corp. and Pfizer Inc., all among the 30 stocks that make up the Dow Jones industrial average, weighed in with reports that generally pleased investors. "Oil is a positive but I think bigger than that is the earnings news is not as catastrophic as people were thinking," said Noman Ali, portfolio manager of U.S. equities for MFC Global Investment Management in Toronto. "Some of the bellwethers are reporting earnings that are better-than-expected. And outside of the financials things, aren't so bad." << MORE >>

TUESDAY, JULY 22, 2008: Wall Street turned in a mixed performance Monday as investors watched the price of oil regain ground and decided to cash in some of their gains from the stock market's big rally last week. While the market's major indexes showed modest losses, the number of stocks advancing outpaced decliners by about 2 to 1 on the New York Mercantile Exchange, and by about 4 to 3 on the Nasdaq Stock Market. The tame session unfolded as oil rose on concerns that the threat of new sanctions against Iran over its nuclear program could escalate tensions in the Middle East. Light, sweet crude rose $2.16 to settle at $131.04 a barrel on the New York Mercantile Exchange. The rise in oil offset initial market enthusiasm after Bank of America Corp. posted results that beat expectations, raising hope the credit crisis might be easing for the nation's biggest retail banks. The second-largest U.S. bank by assets reported that higher investment banking and record revenue helped drive earnings during the second quarter. With Bank of America's results, four of the nation's five biggest banks have now reported better-than-expected earnings, and that's raising hopes that the financial sector is starting to recover from the year-old credit crisis. Still, "with crude trading up near $130, and a big advance last week, some investors are taking chips off the table," said Jim Herrick, manager of equity trading at Baird & Co. "We're going to be in a tight trading range this week based on earnings and oil prices. I expect more of the same." The market was also uneasy about drug makers Merck & Co. and Schering-Plough Corp. Both pharmaceutical companies fell after a new study showed their cholesterol drug Vytorin did not meet its main goals. << MORE >>

MONDAY, JULY 14, 2008..... Investors already disheartened about the growing problems of the financial sector and the soaring price of oil are facing more depressing news with the release of second-quarter earnings reports. The coming week will bring the first big wave of results from America's largest companies, including seven Dow Jones industrial average components and 53 members of the Standard & Poor's 500 index. Investors shouldn't expect much: Earnings for all the companies in the S&P 500 index are forecast by the rating agency to be down 10 percent from a year earlier. Thomson Financial, which compiles forecasts from analysts at banks and brokerages, estimates the decline at 13.5 percent. Either way, Wall Street is well past the nearly five years of double-digit growth that ended as the subprime mortgage crisis spilled into the credit markets last summer. The credit crisis is responsible for the earnings plight; financial companies that have written down an aggregate of $300 billion in soured mortage-related assets remain the biggest drag on S&P 500 earnings. Results are expected this coming week from Merrill Lynch & Co., JPMorgan Chase & Co. and Citigroup Inc. But profits and outlooks for the future are expected to be sobering for U.S. companies as a whole. << MORE >>

THURSDAY, JULY 10, 2008..... Wall Street tumbled Wednesday as investors grappled with renewed worries about the soundness of the financial sector. The major indexes fell more than 2 percent, including the Dow Jones industrial average, which lost more than 230 points. While many financial services companies logged steep declines during the session, government-sponsored lenders Freddie Mac and Fannie Mae were among those hardest hit. Investors are worried that the mortgage finance companies will have to sell more shares than anticipated to compensate for losses from the housing slump. Merrill Lynch & Co. also dropped, after Fitch Ratings put its long-term credit default rating on watch for a possible downgrade. With dismal bank and lender earnings expected in the coming weeks, investors were unable to keep buying a day after stocks, including financials, had logged sharp gains. Investors are bracing for financial companies to take another series of major credit-related write-downs, but the uncertainty about how large they'll be is weighing on the market, said Scott Wren, senior equity strategist at Wachovia Securities. "As we go into earnings season, it's going to be much of the same as the first quarter," Wren said. "Financials are going to suffer the worst comparisons again; consumer discretionary earnings are going to be down, too." Selling accelerated amid light volume, which tends to skew price moves. Meanwhile, oil remained a concern although it had dropped by more than $9 a barrel over the last two days. Crude fluctuated before settling up a penny at $136.05 a barrel on the New York Mercantile Exchange. << MORE >>

WEDNESDAY, JULY 9, 2008..... Wall Street finished sharply higher Tuesday as oil prices dropped sharply for the second straight day and investors were encouraged by the possibility of more help for the ailing financial system. The Dow Jones industrials gained more than 150 points, and all the major indexes were up more than 1 percent. Crude prices tumbled, falling $5.33 to settle at $136.04 a barrel on the New York Mercantile Exchange, bringing oil's two-day drop to more than $9. The average U.S. retail price of a gallon of gasoline remains at a record $4.108, according to AAA auto club, the Oil Price Information Service and Wright Express. Speeches by Federal Reserve Chairman Ben Bernanke, Treasury Secretary Henry Paulson and JPMorgan Chase & Co. Chief Executive Jamie Dimon gave the market some reassurance about the financial sector. Investors have been concerned this week about the health of government-backed lenders Fannie Mae and Freddie Mac; the two companies' troubles helped send prices lower on Monday, but they also helped lead the rebound Tuesday. The market was relieved to hear Bernanke say in a speech the central bank might extend its lending efforts to investment banks; the Fed began allowing the big companies to borrow after the near-collapse of Bear Stearns Cos. earlier this year. At the Federal Deposit Insurance Corp.'s forum on mortgage lending, where Bernanke spoke, Dimon said "the future is very, very bright," but that "I do think we have some very serious issues to face." Paulson, meanwhile, made an upbeat assessment of the government's efforts to prevent the volume of mortgage foreclosures that touched off the credit crisis last year, although he also said he expects foreclosures to continue. The Treasury secretary also said he was pleased at steps taken by Freddie Mac and Fannie Mae to raise money: "Fresh capital will strengthen their balance sheets and allow them to provide additional mortgage capital, as they balance their responsibilities to their mission and to their shareholders." << MORE >>