Hmmzis writes to tell us that Lockheed Martin is using Spaceport America to test a new prototype spacecraft. The prototype is only about one-fifth the size of the projected production model which promises to deliver satellites into orbit at a cheaper cost. “It looks a bit like the space shuttle and would fly to space and return the same way. But even the large version wouldn’t carry people, just satellites. The goal is to get to orbit faster and cheaper thanks to an automated reusable spacecraft run by its own computers and just a handful of people for a launch crew.”

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ronbo142 writes “The United States Geological Survey site has real time (or close to it) information on the now two significant events of the day. Check out their site to enter your experience and view other event specific information.”

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sciencehabit writes to let us know that physicists are hailing the discovery of a new type of superconductor as a “major advance.” The new materials could solve the biggest mystery in condensed matter physics — i.e., how and why cuprate superconductors work — as well as paving the way for practical magnetic levitation and lossless transmission of energy. “God only knows where it will go,” says one Nobel Laureate. After the discovery of superconductivity in an iron-and-arsenic compound at 26 kelvin, several Chinese research groups quickly found related materials that are superconducting up to 55K. (Cuprates go as high as 138K; liquid nitrogen boils at 77K.)

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KentuckyFC writes “How birds use the Earth’s magnetic field to navigate has puzzled researchers for decades. In current years, a growing body of evidence has pointed to the possibility that a weak magnetic field can influence the outcome of a certain type of chemical reaction involving the recombination of pairs of ions in bird retinas. The trouble is that the ion recombination is known to happen too quickly for the Earth’s weak magnetic field to have any effect. Now it looks as if the quantum Zeno effect explains all, says one researcher (abstract). This is the watched-pot-never-boils effect in which the act of observing a quantum system maintains it for longer than expected. That’s astonishing news because it means a quantum sensor is determining the macroscopic behavior of living birds.”

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Filed under: International markets, Other issues, Housing

Deutsche Bank and other investment banks are apparently working on plans to develop a clearing home for the credit derivatives markets, in an effort to allay rising regulatory concern and investor skittishness about counterparty risk, The Financial Times reported Friday.

Deutsche Bank (NYSE: DB) and other banks are apparently trying to develop a plan that would allow only institutions with strong capital bases and credible trading histories to clear trades in the credit default swap markets with a central counterparty, The FT reported.

The derivatives market has experienced explosive growth in the past decade, with the instruments’ value totaling $350-$450 trillion, depending on the methodology used. At the same time, the credit default swaps market has grown to $45-50 trillion.

Global clearing house

Economist David H. Wang told BloggingStocks Friday that, ideally, a global derivatives clearing house should take the form of a public, international organization administered by member nation states. Failing that, he’d like to see a private international organization administered by the major investment banks.

The new overseeing organization would maintain counterparty solvency, liquidity, and integrity — something that’s intrinsic to properly functioning markets, in general, as well as the derivatives market.

“Unlike what some critics hope for, the derivatives market is not going to go away. You can not turn back the clock. Derivatives are part of and play a role in the international financial system,” Wang stated. “The challenge now is to create a clearing house or exchange with standards and rules, so that all celebrations know the composition, value, price, and risk of all instruments at all times. An organization of that scope will not be simple to form, but the financial system will be superior off if one is put in place.”

The role and impact of derivatives came into question in August 2007 after two derivative-laden Bear Stearns (NYSE: BSC) hedge funds failed as the housing boom ended, resulting in a series of related asset-backed-securities mark-downs that temporarily froze the credit markets, and precipitated the current credit crunch.

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Filed under: Insiders, Industry, Law, Scandals, Housing

The FBI says that deceptive practices at hedge funds and some banks might have made the subprime disaster worse. According to Reuters, the head of the agency stated the bureau’s investigation of potential fraud in the U.S. home mortgage industry now encompasses 19 companies in “cases that may have a substantial impact on the marketplace.”

While insider trading and accounting fraud may be part of any charges which emerge, one of the biggest single issues might be the sales practices of the firms which sold subprime paper to their clients. The subprime instruments were often presented as having high credit ratings and safe risk profiles. Of course, it didn’t work out that way. Another problem may be whether mortgage banks were absolutely honest in what they told home-buyers about how their loans would work as their interest rates increased over time.

Some of the investigation is a witch hunt. Big banks which took subprime instruments onto their balance sheets had plenty of genius-level analysts who could have analyzed the products. At most firms, so one skipped that part. Caveat emptor and all that. Individuals who took on home mortgages sold by people who did not want them to read the small print is another matter.

Rumors are that Goldman Sachs (NYSE:GS) and and Morgan Stanley (NYSE:MS) could be targets of the probe. Countrywide (NYSE:CFC) is already under investigation. One news report on the potential scandal said that FBI head man Robert Mueller told a meeting of lawyers “that their corporate clients should come forward and admit any wrongdoing before the FBI or Justice Department become involved..”

That’ll be the day.

Douglas A. McIntyre is an editor at 247wallst.com.

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Filed under: Products and services, Wal-Mart (WMT)

Wal-Mart Stores, Inc. (NYSE: WMT) is purging bottles made from the controversial material bisphenol A (BPA) from its shelves starting in 2009, according to company officials. Well, baby bottles, that’s. But there’s more: baby bottles, sippy cups, food containers, water bottles and pacifiers containing BPA are immediately being pulled from Wal-Mart’s Canadian stores.

Even though Wal-Mart has sold non-BPA baby bottles for years alongside BPA-containing bottles, this is the first move the retailer has made to strike BPA from its shelves in its entirety. This comes after a report from the U.S. National Toxicology Program that indicated BPA could cause behavioral changes in infants and children. In addition, BPA was indicated as possibly causing the onset of early puberty in females.

So, why isn’t Wal-Mart jettisoning BPA from its U.S. stores now? Probably to give time to its vendors to change their packaging material over the course of the remainder of 2008. Of course, the American Chemistry Council trade group is lashing back by stating that recent reports are “unnecessarily confusing and frightening the public.” Regardless, other retailers are seeing big increases in customer demand for non-BPA children’s products like glass alternatives and others. Although the FDA seems to think BPA is safe, the American consumer needs more expediency than a federal review can provide, yes?

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Filed under: Products and services, Best Purchase (BBY)

When D&M Holdings recently put 49% of the company up for sale, consumer audio brands like Denon, Marantz, Snell, McIntosh, Boston Acoustics and Escient seemed primed for the picking. These are top-tier audio brands sold in some of the most prestigious consumer electronics retailers in the nation. The price for that slice? $700 million. The possible suitors? Consumer electronics brands Kenwood, Harman International and … Best Buy Stores, Inc. (NYSE: BBY), the largest consumer electronics retailer in the U.S.

Philips Electronics, who holds 12% of D&M Holdings’ shares, indicated that it would also put its shares up for sale, as well, to the same bidder group, giving one company access to 61% of D&M Holdings’ shares. Kenwood is owned by Bain Capital, and may be looking to re-enter the home audio field. Harman, which owns the Harman Kardon, Infinity and JBL brands, might be looking to expand. But Best Buy buying a top-tier audio manufacturer? Isn’t it a retailer, not a brand owner that could compete with the brands it already carries?

Ideal Purchase is already D&M Holdings’s largest customer, but there is a fine line between a Best Buy-owned brand (which is seen as entry-level and with inferior quality) and a top-of-the-shelf brand such as Denon and others. I would posit that Denon and Snell customers are audiophile-type customers who would scoff at the idea of having a Best Purchase brand in that audio equipment rack, even if nothing but the ownership of the brand changes. Harman dropped out of the bidding already, so it could come down to Bain Capital and Ideal Purchase soon. Should a mass-market electronics retailer really get into high-end consumer audio? That’s a gamble, although the price wouldn’t be exorbitant (just over $1 billion if you do the math).

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Bibek Paudel writes “Over the past few weeks Chinese bloggers and people on World wide web forums have been reacting to events in Tibet and the protests disrupting the torch relay. The BBC and Global Voices have interesting insights on the current happenings on the Net. A western commentator states, ‘Lots of Chinese people now view the Western media, human rights groups, and Western leaders’ criticisms of their country as part of the Racist Western Conspiracy to Stop China From Being Successful.’ One of the most vocal appeals by the Chinese blogs, forums, and text-messages has been to boycott French goods in response to the protests that accompanied the torch relay in Paris. One response post reads, ‘Who is abusing human rights? Who is bringing violence to this world?’ There also are two versions of music video of the song Don’t Be Too CNN, and its lyric has assumed the status of a cult catch-phrase. Sina.com has a popular page: ‘Don’t be too CNN, fire to the Western media.’ Many analysts believe that the protests over Tibet have only served to strengthen Chinese nationalism rather than evoke sympathy for the Tibetan cause. Sina.com has a petition against the Western media which has reportedly accumulated millions of signatures. There is also Mutant Palm, a blog by an expatriate in China who has been watching and commenting on the fallout from Tibet and torch protests online.”

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