Daily Digest

Daily Digest 1/23 - New Global Recession Is Here, Adviser Guilty Of PA Swaps Fraud, Veterans' Struggle

Monday, January 23, 2012, 11:43 AM
  • Shilling Says New Global Recession is Here
  • WATCH: Irish Journalist Leaves ECB Official Speechless
  • Adviser Guilty Of Fraud Linked To Pennsylvania Swaps
  • Greek Talks Hit A Snag Over Rates
  • Congressman Has Police Confiscate All Cell Phone Cameras
  • Veterans' Struggle
  • Solar Yacht Sails Around the World Powered by Nothing More than the Sun
  • Environmental Politics: Keystone XL Rejected Until After the Election

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Economy

Shilling Says New Global Recession is Here (kelvinator)

Unlike many gloom and doomsters, Shilling is a genial sort who likes cracking jokes and keeps bees as a hobby. But when it comes to economics he’s dead serious: He’s been consistently gloomier than the economic fraternity and consistently right over the past few years. Now, he parts ways with his peers again by declaring that a new global recession already has begun in Europe and that it will touch our shores soon.

WATCH: Irish Journalist Leaves ECB Official Speechless (adam)

Browne hits Masuch hard on the question of why the Irish people should be forced to protect unguaranteed bondholders.

Adviser Guilty Of Fraud Linked To Pennsylvania Swaps (June C.)

Rubin served on Rendell's gubernatorial transition team. His firm advised Philadelphia on interest-rates swaps, complex financial contracts designed, for example, to let borrowers raise money at slightly lower interest rates and protect them from the risk of rising rates, in exchange for agreeing to pay banks and in- vestors compensation if rates fell.

Greek Talks Hit A Snag Over Rates (jdargis)

Talks broke off over the weekend when Charles H. Dallara, the managing director of the Institute of International Finance, a bankers group that is representing private sector bondholders, left Athens. In a statement, a spokesman for the group said that Mr. Dallara had a previously planned personal engagement in Paris and that progress was being made toward securing an agreement.

Congressman Has Police Confiscate All Cell Phone Cameras (Phil H.)

Our elected officials have decided that the Constitution does not apply to them. They are sick and tired of seeing videos of what they have said posted on YouTube, and they aren’t going to take it any more.

Veterans' Struggle (jdargis)

Unlike the Wall Street bankers who have been feeling the heat from the 99 per cent – but also unlike the Vietnam veterans who were called “baby-killers” – this 1 per cent come home to complete indifference.

Energy

Solar Yacht Sails Around the World Powered by Nothing More than the Sun (James S.)

The project was conceived by Raphaël Domjan of Switzerland as a method of demonstrating the possibilities that current solar technology holds for clean transportation. The yacht carries a huge rack of Lithium-Ion batteries capable of storing up to three days’ worth of sailing power, easily enough to allow transit to continue throughout the night, or during overcast skies. Never once in thousands of miles has the boat had to turn on its diesel back up, in fact the diesel is only on board is to satisfy the insurance companies.

Environmental Politics: Keystone XL Rejected Until After the Election (James S.)

All sides can score points on the issue while doing what they perceive as no lasting damage. For business this is business as usual, large project developers are accustomed to delays, posturing and political extortion. The business calculus is not whether this is still a good project, it is the trade-off between the sunk cost and the to-go cost answer compared to the alternative uses of both financial and political capital. For the special interest advocates on all sides and the media it is a feeding frenzy of bombast and bluster, green versus brown, 1% who want to remain profitable in their oil business versus the 99% who need their oil products but decry how much it costs.

Article suggestions for the Daily Digest can be sent to dd@PeakProsperity.com. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

17 Comments

saxplayer00o1's picture
saxplayer00o1
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Bill Hicks's picture
Bill Hicks
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Posts: 34
J.C. Penney to Eliminate Thousands of Jobs

J.C. Penney is now in competition with Sears to see who can go down first.

http://billhicksisdead.blogspot.com/2012/01/jc-penney-to-eliminate-thousands-of.html

J.C. Penney Co., run by Apple Inc.’s former retail chief, will cut thousands of jobs as part of a plan to overhaul the company, the New York Post reported.

Chief Executive Officer Ron Johnson is eliminating positions that involve re-tagging merchandise and putting up temporary signs and displays, the Post said, citing people it didn’t name. The reductions will affect employees at almost all of J.C Penney’s 1,200 stores in the U.S.

thatchmo's picture
thatchmo
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Posts: 266
cameras in public places?

Can any legal eagles here comment on whether the cop was right in confiscating the cameras from the audience?  Seems like an event that could happen to any of us in our own communities.  If you saw a sign banning cameras from an event at a "private" location- I suppose the congressman's org. paid to rent the room- is it possible to enlighten the police officers- and event organizers- that such may be illegal- if it actually is?   Aloha, Steve.

thc0655's picture
thc0655
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Posts: 642
cameras in public places

The training we have received in my police dept (which is based on court rulings distilled by the Dept's legal experts) is that filming police on duty in public places is legal and should not be interfered with.  I don't see how the same wouldn't be true for anyone else in public.  And the "official" media have no more or less rights than the average citizen (the presence of TV cameras should be a dead give away that filming is legal).  I'd say there's a huge civil rights lawsuit waiting to be filed against the individual police officer, his entire dept for not training him better, and the Congressman if he indeed ordered the police to take the cell phone cameras (or force them to be turned off). And since when do the local police take orders from a Congressman?  If those two citizens don't join in legal action they are letting the rest of us down (because they would be standing up for all of us, and because we have no legal standing to take legal action against what happened there).

saxplayer00o1's picture
saxplayer00o1
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Posts: 2785
Krugman in 2002 vs 2012

Published: August 02, 2002

"To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble."

Published: January 22, 2012

"But anyone who has looked seriously at how we got into this slump knows that private debt, especially household debt, was the real culprit: it was the explosion of household debt during the Bush years that set the stage for the crisis. "

Poet's picture
Poet
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Posts: 1844
J.C. Penney

The last weekend before Christmas, J.C. Penney was having a sale, with everything 40% to 60% off. Also on that day, they were handing out free (photocopied) flyers printed with a $10 coupon off any total purchase of $25 and over. For example, on that day, a sweater they would tag at $34, would sell at a more reasonable $16.

I had $100 in gift cards (a holiday gift from a distant relative). so I  made 5 separate transactions - in two cases buying a $3 bar of Godiva choclate in order to a transaction to over $25 - just so I could pay around $15.

But would I shop there any old day of the year?  No.

Poet

Bill Hicks wrote:

J.C. Penney is now in competition with Sears to see who can go down first.

http://billhicksisdead.blogspot.com/2012/01/jc-penney-to-eliminate-thousands-of.html

J.C. Penney Co., run by Apple Inc.’s former retail chief, will cut thousands of jobs as part of a plan to overhaul the company, the New York Post reported.

Chief Executive Officer Ron Johnson is eliminating positions that involve re-tagging merchandise and putting up temporary signs and displays, the Post said, citing people it didn’t name. The reductions will affect employees at almost all of J.C Penney’s 1,200 stores in the U.S.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
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Posts: 2506
On the Veterans story.

On the Veterans story.

Here are the conclusions that my life experiences have taught me.

  1. Never fight for patriotic reasons. Be a mercenary. The money must be in the bank before you do anything. Your government will lie to you. The fate of most old soldiers is desperate poverty.
  2. Take up arms for a foreign power. That way when the thrill wears off you can just go home.
  3. If you simply cannot resist the importuning of your country, make certain you win the war. That way you will at least have a home to go back to.
  4. Memory suppression is the cause of much alcoholism among veterans. Ensure you are fully compensated for the burden of memories. This is not a problem for psychopaths.

Speaking of which, how is wee Georgie Bush doing these days? Not that he is a psychopath. His eyes were too close together. Did anyone ever publish his IQ score? He was hand picked by Big Oil. Perfect for the job. His Momma must be proud.

Makes you want to pray there is a Hell.

pwoody82's picture
pwoody82
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Posts: 50
On the Veterans story

Is it not interesting that our current president has continued virtually every program initiated by the Bush administration but even more so. The Bush admin ran half trillion deficits, Obama trillion deficits, Gitmo is still going strong, the patriot act was renewed, the war on fossil fuels is even more pronounced than under Bush, and bailouts of big failed businesses continue apace. In fact, I have called Prez Obumer's administration G. W. Bush's third term with much justification. So if there is a special hell for GB, then he will be joined in it by Mr. Obama. An outcome devoutly to be wished. The last time I voted for a presidential candidate was for Regan, and since then it has always been a vote against the democratic candidate, even though I had hold my nose and drag my butt to the polls. If Romney is selected, it will be the same thing again.

Damnthematrix's picture
Damnthematrix
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Posts: 3998
Bush IQ

Arthur Robey wrote:

Speaking of which, how is wee Georgie Bush doing these days? Not that he is a psychopath. His eyes were too close together. Did anyone ever publish his IQ score? He was hand picked by Big Oil. Perfect for the job. His Momma must be proud.

There is a rumor circulating that George W. Bush's IQ is 91. Well, I did some research and found that to be a number made up by some fake
organization.

Bush's SAT score was 1206 (566 Verbal, 640 Math). See the upper-left corner of his Yale transcript:
http://www.iuptown.com/YaleProtest/bushs_yale_transcript.htm

This web page offers a theoretical conversion of pre-1974 SAT scores to IQ:
http://members.shaw.ca/delajara/Pre1974SAT.html

Based on that conversion chart, Bush's IQ would be about 129.

jrf29's picture
jrf29
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Joined: Apr 18 2008
Posts: 445
Cell phone cameras

It is going overboard to say that Congress has decided that "the Constitution doesn't apply to it."  There are many public places where cell phones are not allowed.  Take courtrooms.  They are the epitome of the public place, and almost everything that goes on in them is public.  Yet most judges have standing orders prohibiting cell phones, cameras, or recording equipment in their courts without prior permission.  Cell phone cameras are distracting, often intimidating to witnesses, and are wholly inconsistent with the solemnity and dignity of a court of law.  Even non-camera cell phones are a distraction, and are insulting to the dignity of the court when they ring.

In the Supreme Court of the United States, taking notes without permission is strictly prohibited (and has been for hundreds of years).  Who knew?

So let's not drag the constitution into this . . . .

On the other hand, just because Congress can make such a rule doesn't mean they should. I think it is symptomatic of the increasing restrictions on public participation which we are willing to tolerate, often in the name of "security."

In 1954, four Puerto Rican nationalists opened fire with semi-automatic weapons on the U.S. House of Representatives from the ladies' visitors gallery.  Five Congressmen were shot:  One in the chest.  Two in the back.  One in the abdomen.  One in the leg.  What happened as a result of this attack?  Life went on.  The U.S. Capitol remained completely open to visitors.  Because we understood that open democracy has a risk (and sometimes a cost) in terms of human lives, and this cost is far less than the cost of a secretive government.

Today can you imagine what would happen if there was a similar attack on the Congress?  I think we have forgotten that a lack of "security" is a very small price to pay for open government.

horstfam's picture
horstfam
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Posts: 71
Video from INSIDE Fukushima #2 containment vessel

Interesting video here:

http://www.youtube.com/watch?feature=endscreen&NR=1&v=8zoMJM9hr3w

cmartenson's picture
cmartenson
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Posts: 3514
PAUL KRUGMAN Published:

PAUL KRUGMAN

Published: August 02, 2002

"To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble."

PAUL KRUGMAN

Published: January 22, 2012

"But anyone who has looked seriously at how we got into this slump knows that private debt, especially household debt, was the real culprit: it was the explosion of household debt during the Bush years that set the stage for the crisis. "

Ouch.

That's a nasty quote pair.

It is a perfect exemplar for why we try so very hard around here to keep partisan and other belief structures off of the site and out of our analyses...the contortion of facts and ideas to fit around one party or belief set just wrecks the whole thing.  

Perhaps one or both of those quotes is being taken out of context, but if not, then that tells us all we need to know about how much weight Mr. Krugman's arguments should be granted right out fo the box....not very much.

Not to pick on Mr Krugman alone here, there are plenty of examples to be found in all parties and everywhere across the various two-axis divides.

crazy horse's picture
crazy horse
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Posts: 13
Krugman nonsense

Saxplayer,

This post deserves to go viral. Brilliant.

That someone so loopy is so embraced by the mainstream speaks volumes about where we are today and where we are heading tomorrow.

KennethPollinger's picture
KennethPollinger
Status: Silver Member (Offline)
Joined: Sep 22 2010
Posts: 217
Krugman's quotes

I'd like to see the FULL Aug 2, 2002 write-up--just in case it was

taken out of context.  And if it was, then Chris is jumping the gun and

possibly making too quick judgments about Paul, at least concerning

these two posts.

phecksel's picture
phecksel
Status: Silver Member (Offline)
Joined: May 24 2010
Posts: 160
I would highly recommend

I would highly recommend reading the 1st amendment, especially not infringing on the press.

http://en.wikipedia.org/wiki/Freedom_of_the_press_in_the_United_States

In Lovell v. City of Griffin, Chief Justice Hughes defined the press as, "every sort of publication which affords a vehicle of information and opinion."[1] This includes everything from newspapers to blogs.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 2785

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