Daily Digest 1/12 - Why The National Debt Could Drain Your Savings, Towards The Paranormal, The End Of The Euro As We Know It
- Growing Wealth Divide Puts Globalization At Risk
- The Faustian Bargain has Enabled an Unsustainable Economic System, but Not for Much Longer
- Protect Yourself: Why The U.S. National Debt Could Drain Your Savings
- Farmers Sue John Corzine Over Missing Millions
- Theft, repression and turmoil: what investors can expect in 2012
- Towards The Paranormal
- White-Collar Workers Join Crowd Straining Food Banks
- Bud Conrad: “The End of the Euro As We Know It”
- Skyscrapers 'Linked With Impending Financial Crashes'
- Squatters in Texas Town Use Arcane Law to Claim Vacant Homes
- Poverty in America likely to get worse, report finds
- Energy Investing In 2012: How To Come Out On Top In Volatile Markets
- How Do You Feed Seven Billion People?
Rising youth unemployment, a retirement crisis among pensioners dependent on debt-burdened states and a yawning wealth gap have sown the "seeds of dystopia," according to the report, based on a survey of 469 experts and industry leaders.
What about the Faustian bargain? It remains deeply hidden from view because its exposure by the high priests of modern economics would force us to rethink how we live and why we live this way, as well as what we’re planning to leave for future generations. The Faustian bargain goes something like this: Thanks to the discovery and exploitation of fossil fuels, humans (really just a small minority of them) are able to live richer lives today than even the queens and kings of yore could have dreamed of.
“Congress is doing everything it can to make sure the national debt grows,” said Money Morning Capital Waves Strategist Shah Gilani. “Republicans want more tax breaks for the rich while they appease the middle class by considering extending the payroll tax cuts and unemployment benefits. The Democrats want to hire voters as government employees, a la Greece, to not only expand their base, but prove that big government can indeed be friendly. It’s sickening.”
Corzine was at the helm of the firm when it declared Chapter 11 on October 31 , the eighth-largest bankruptcy filing in U.S. history. Regulators initially thought $600 million in customer funds had gone missing, but later upped their estimate to $1.2 billion. Only 60 percent of customer funds could be found.
After a year which saw markets lurch up and down between hope and despair over Europe’s sovereign debt crisis, professional investors clearly still see things very much in binary terms.
To use the catchphrase of 2011, risk is either ‘on’ or ‘off’. Shares and bonds are either black or white, good or bad, markets are either stop or go.
Towards The Paranormal (ScubaRoo)
How many ways can you say “it’s different this time?” There’s “abnormal,” “subnormal,” “paranormal” and of course “new normal.” Mohamed El-Erian’s awakening phrase of several years past has virtually been adopted into the lexicon these days, but now it has an almost antiquated vapor to it that reflected calmer seas in 2011 as opposed to the possibility of a perfect storm in 2012. The New Normal as PIMCO and other economists would describe it was a world of muted western growth, high unemployment and relatively orderly delevering.
“We’re seeing many faces from the middle class who had been donors who now need support from our food bank,” Terry Shannon, president and chief executive officer of the Phoenix, Arizona-based St. Mary’s Food Bank Alliance, said by phone. “Right now, our donations are softer than we would like them to be.”
Jim is pleased to welcome back Bud Conrad from Casey Research to discuss the ongoing European financial crisis and its implications for Europe and the rest of the world. He also sees more money-printing ahead, followed by higher gold prices.
Skyscrapers 'Linked With Impending Financial Crashes' (Ivo M., Ben Johnson)
The bank noted that the world's first skyscraper, the Equitable Life building in New York, was completed in 1873 and coincided with a five-year recession. It was demolished in 1912.
“Adverse possession is a concept that's been around for a long time. It was created when Texas was a Republic to resolve land disputes," Shannon explains. "So for example, if one man’s land had a river as a boundary, and the river changed course over the years, who’s entitled to that land? The adverse possession allowed a new owner to claim the land, but only after openly possessing it and using it for years."
Poverty in America likely to get worse, report finds (Michael W.)
The white paper, drafted by the university's school of public and environmental affairs, which is among the best ranked schools of its kind in the US, says that six years ago, 36.5 million Americans fell below the poverty line. By 2010, the number of people living in poverty rose to 46.2 million and continued to grow over the past year.
The VIX climbed at the end of the 21st century, when investors discovered that the fervor surrounding high-flying technology stocks had inflated expectations to unrealistic levels. The implosion of Pets.com–a company that had a successful marketing campaign but lacked a viable business plan–represents the worst of the Dot-Com craze. Major accounting scandals that brought down WorldCom and Enron Corp also shook investors’ confidence.
How Do You Feed Seven Billion People? (David B.)
As with other commodities, Ag is highly responsive to movements in the Dollar (.DXY). With the Dollar currently at its 52 week high nearing 82.00, traders are already moving into Ag (NYSEARCA:JJA) anticipating a Dollar decline and cyclical expectations of the sector. Fertilizers had been hard hit with the Ag sell-off and rising Dollar. Negative sentiment has been strong. However, grain prices tend to front run fertilizer prices (or actually, fertilizer lags grains as farmers prepare for new crops) and the renewed interest in Ag is encouraging. As further confirmation, MOO’s largest holding, Monsanto (NYSE:MON) crushed analyst’s expectations in its recent quarterly report and projection for 2012. Deere (NYSE:DE) has been especially strong and could have a “Golden Cross” of the 50 day moving average crossing above the 200 day moving average soon. Potash (NYSE:POT) is showing a good bottoming process.
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