Daily Digest 2/4 - Looking In On The Housing Disaster, The Little Economy That Could, What's More Precious Than Gold?
- On the 70th Anniversary of the Munich Students Movement - The War is Lost - The Future of Europe
- Counterfeit Value Derivatives: Follow the Bouncing Ball
- What Lies In Store For The "Cradle That Rocks The World" - A History Lesson In Crisis
- What's More Precious Than Gold?
- Real Estate: Looking In On The Housing Disaster
- The Little Economy That Could
- It Is Safe to Resume Ignoring the Prophets of Doom ... Right?
- In a Focus on Gold, History Repeats Itself
- San Onofre Nuclear Plant Radiation Leak, Worn Tubes Raise Concerns
It is interesting to read this now, when Europe once again considers what its shape and its future will be.
As buyer and seller of CDS’s either one of us can assign our risks to a third party through another contract, and pretend as if we are covered in case our own game playing blows up in our faces. This allows us to retain even less reserve capital and spend freed-up funds on more high-risk, high-(pseudo) return speculation. (The monster that ate Wall Street.)
History buffs would argue that it is impossible to understand the effects on the world from a Mediterranean roiled by crises occurring simultaneously within both the eurozone and the Arab nations today without looking back to the Mediterranean in history.
The "Arab Spring" has focused the world's attention on the South Shore of the Mediterranean. However, most commentators on the successive revolutions supply maps of each of the states, but almost never a map of Mediterranean civilization. This is both non-historical and misleading.
What's More Precious Than Gold? (Chris M.)
It shouldn’t be news to you, but we live in a economically interdependent world. Think about that for a second. Most of us couldn’t get through an hour without relying on something that’s provided by the global production system. We are completely and utterly dependent on it. So is our community, our state, and our nation.
We are back to 2003 in terms of average national home prices as shown in the above chart. This hasn’t changed much recently. It does appear that prices are trending flat which is borne out by other data we are seeing. I don’t see the housing market recovering any time soon because there are too many homeowners in trouble with their mortgages. I recently read an article from McKinsey that suggested we are one to two years away from a stabilized housing market. That is as good a guess as any.
The Little Economy That Could (jdargis)
Hardly anybody forecast a happy economic future for Mauritius before it was granted independence from Britain in 1968. To the contrary: the British economist James Meade (who would go on to win a Nobel Prize) concluded that "the outlook for peaceful development is poor" because of its high population density, reliance on a single crop (sugar cane), and ethnic conflict. He might have added that the island was far from markets for its exports, and a daunting plane journey for European tourists in search of sunshine.
For nearly a decade, it turns out, the most accurate forecasts have come from the fringe. So it’s upsetting to learn that many of those same Cassandras now believe, for different reasons, that we are on the brink of another catastrophe that may be far worse. Wolff, the Marxist, fears that China may be entering a significant slowdown, which, combined with Europe’s all-but-inevitable recession, could send the world into an economic tailspin.
“Hard money is a discipline,” he added. “It is very important for us to understand in finance that the entire contraption that has been built up over the last thirty or forty years has so much paper in it, so much debt, so much leverage, that we probably have a fifteen- or twenty-year period of working our way out of it. And yet, the alternative is to get sicker and sicker and sicker.”
Nuclear regulation officials said Thursday that extensive wear had been found on tubes inside a unit at the San Onofre nuclear plant. Another unit at the plant was taken off-line after a small radiation leak earlier this week. Dozens of relatively new tubes that carry radioactive water in a steam generator showed "many, many years" worth of wear, even though the tubing is 22 months old, said Victor Dricks, a spokesman for the Nuclear Regulatory Commission.
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