Daily Digest

Daily Digest 5/17 - The Moral Hazard Of 'Too Big To Fail', Judge Blocks Controversial NDAA, North Sea Gas Leak Stopped

Thursday, May 17, 2012, 10:40 AM
  • Bill Black: On JP Morgan's "Hedge", Jamie Dimon's Integrity, and the Epic Conflicts of Interest in the Federal Reserve System
  • Why Plunging Commodity Prices Are Ominous For Stock Market
  • Hot Money Bets Backed By Taxpayers: The Extreme Moral Hazard of 'Too Big To Fail' - Credibilty Trap
  • Breaking: Judge Blocks Controversial NDAA
  • Greece Can No Longer Delay Eurozone Exit
  • Total Finally Stop Gas Leak at North Sea Well
  • Debris Possibly From Japanese Tsunami Floating Up Strait Of Juan De Fuca

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Economy

Bill Black: On JP Morgan's "Hedge", Jamie Dimon's Integrity, and the Epic Conflicts of Interest in the Federal Reserve System (Jaime)

If you have distressed European debt, you are supposed to have already reserved against the losses in it. So why hedge the position at all? Just sell it. Get rid of these incredibly risky assets before they can suffer any additional losses. If you already have losses, it is not necessary to recognize a loss, because you have already reserved for it. So, you should not have had to hedge, period.

Why Plunging Commodity Prices Are Ominous For Stock Market (David B.)

As a five-year chart of the CRB Index of Commodity Prices shows, declining commodity prices usually indicate demand for goods is dropping and the economy is in trouble, which in turn is a problem for the stock market.

Hot Money Bets Backed By Taxpayers: The Extreme Moral Hazard of 'Too Big To Fail' - Credibilty Trap (adam)

That is the problem one faces when the public is apathetic, and the political leadership is composed of cynically pragmatic dealmakers and shallow but ardent ideologues driven by narrow personal expediency, not firmly rooted in history, moral principles, and stewardship for the broader public trust.

Breaking: Judge Blocks Controversial NDAA (Thomas C.)

At a hearing in March, three of the plaintiffs testified that the possibility of government repression under the NDAA made them reconsider how they approached their journalism and activism.

Guardian journalist Naomi Wolf read testimony from Jonsditir, who prepared a statement saying that she would not visit the U.S. for fear of detention.

Greece Can No Longer Delay Eurozone Exit (jdargis)

In the recent elections, Tsipras' Syriza party advanced to become the second-largest political force in the country, and Tsipras is making sure his gray-faced opponents from the Greek political establishment know it. Surrounded by cameras and microphones, he stood in the Athens government district last Tuesday, put on his winner's smile and called upon the two traditional parties, the center-left Socialists (PASOK) and the conservative New Democracy, to send a letter "to the EU leadership" and cancel the bailout deal that Athens made with the EU and the International Monetary Fund (IMF).

Tsipras knows what many Greeks are thinking. At the end of last week, his poll numbers rose to a new record level of almost 28 percent.

Total Finally Stop Gas Leak at North Sea Well (James S.)

Yves-Louis Darricarrere, the president of exploration and production at Total, announced that, “today a major turning point has been achieved. Our absolute priority was to stop the gas leak safely and as quickly as possible. We shall now fully complete the on-going task and take into account the lessons learnt from this incident.”

Debris Possibly From Japanese Tsunami Floating Up Strait Of Juan De Fuca (VeganD)

The buoy found by the Taylor family is nearly identical to one discovered on a Neah Bay beach in October that was traced to an oyster farming area in the hardest-hit part of the Japanese coastline by the March 2011 subduction quake and giant tsunami, which together resulted in 15,854 deaths.

A growing pile of marked floats is stored at the Dungeness refuge, said Falzetti, who said he is starting to become concerned about sensitive island seabird habitats.

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19 Comments

saxplayer00o1's picture
saxplayer00o1
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rjs's picture
rjs
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found at The Daily Sheeple

12 Year Old Explains How Banks Commit Fraud - video - 12 year old Victoria Grant spells out the fraud the banks are committing against the people and explains why her homeland, Canada, and most of the world, is in debt.

MarkM's picture
MarkM
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KugsCheese's picture
KugsCheese
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Upside Down World

10yr USA T-Bill yield closed at 1.702%.  The lowest yield on record.

Just remember that the world never works the way you think it will.

Buy Greek islands?

saxplayer00o1's picture
saxplayer00o1
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KugsCheese wrote: 10yr USA

KugsCheese wrote:

10yr USA T-Bill yield closed at 1.702%.  The lowest yield on record.

Just remember that the world never works the way you think it will.

Buy Greek islands?

The great thing about investing in treasuries now is that you don't have to stay awake at night and worry that you might lose

money on your investment. We are now at that no-risk point where we can guarantee that you will lose money on your investment:

Treasury Sells Inflation Notes at Record Low Negative Yield

Will's picture
Will
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Judge blocks NDAA provision of indefinite military detention

I am amazed at the silence on this positive developement.  Not a single comment here in the DD.  Not a single comment on the CM forums that I could see.  Virtual silence from the MSM--- I did a search and could only find one news article on MSNBC that was posted late yesterday and not a single comment was posted regarding the article.   Hmmm....????

Judge blocks NDAA provision of indefinite military detention

jzakariasen's picture
jzakariasen
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Judge blocks NDAA provision

I saw it and I was very pleased.  I will watch with interest to see if this decision gets overturned by a higher court.  It was the most important news story of the day, at least so far as Americans are concerned so it is surprising it did not get more coverage.

robie robinson's picture
robie robinson
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good news

does't sell?

Arthur Robey's picture
Arthur Robey
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Smooth

no internet. Watching PBS Newshour. TimothyGeitner is Smooth.Obama singlehandly saved the American economy.
The US $ is strong despite the weakness in the Euro.(I had that all wrong.)
James Dimon's position on the Board of Directors of the FED isa matter of perception.In fact be doesn't do anything there. He just sits around cleaning his nails all day. Obama would love to help but there is not much he can do.
If only I was as smooth as Mr Gietner.

thc0655's picture
thc0655
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NDAA not news

Here's how I've tried to understand the deafening silence:

1.  Everyone, even the otherwise alert and aware, are so distracted by other things they didn't notice or have time to comment.

2.  People are so discouraged by the government's direction and corruption they assume the judge's order will be ignored or overturned, so why get all up in a bother about it.

3.   A large percentage of people, even the otherwise alert and aware, are unaware of the issues embedded in the NDAA 2012.

4.  Many are hoping the explanations given by TPTB which said the relevant section of the law (1021) isn't anything new (so why pass it?) and besides it doesn't mean what it appears to mean.  Hope and change!  (i.e. things are changing massively right before our eyes and they're hoping we don't notice -- and we're not!)

5.  A few don't want to comment happily for fear of being disappeared!  

I'm 2 and 5.

thc0655's picture
thc0655
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NDAA not news

"May the odds be ever in your favor!" 

Tycer's picture
Tycer
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Yes. 2&5

Yes. 2&5

MarkM's picture
MarkM
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Yep

A little bit of #5. Sadly, mostly #2.

Wendy S. Delmater's picture
Wendy S. Delmater
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Re: NDAA - 2 & 5 and...6

6. Some folks were away on vaction.

Just reading all this now after being away on a working vacation--science fiction writing and editing-related--a trip during which where I briefly met with Robbie Robinson! I am just now catching up on five days' worth of news.

Hubby works full time and normally in our partnership I keep an eye on the news and give him a news digest. This week our roles were reversed. I'm sure he would have let me know if anything dire happened, but he missed this one.

Let's see if TPTB let this temporary injunction stand. Who knows, maybe we USAans can have ringside seats to a constitutional crisis as the case goes all the way to the Supreme Court. I'm glad at least we are awake and noticed.

Dogs_In_A_Pile's picture
Dogs_In_A_Pile
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NDAA anti-redux

6 and for your consideration.......7

7. NDAA was so poorly written that Judge Forrest had no choice but to manifest herself as my fourth grade English teacher, Mrs. Wamsley.  In essence she handed the paper back, stared over her bifocals and said "Dogs - okay, fine she really said 'Richard' - this is not your best work.  Now go back and rewrite this so it can be understood."

After all, we know the specialty and expertise of our Ivy League educated political leadership lies not with crafting easily understood bills but with management of sound fiscal, monetary and budgetary policy, efficient goverment function, and development of truly stimulative economic programs.  With liberty and justice for all....wait.........ooops

thc0655's picture
thc0655
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NDAA poorly written?

That was my first impression, "Who wrote this crap and why didn't someone proof read it?"  Then I thought, after hearing contradictory impressions of what it supposedly said, "Ahhh, grammatically built in plausible deniability."  1. Write it poorly and ambiguously, leaving room for debate about what it actually means.  (So that means it was actually written cleverly, considering the political context and risks!)  2. Pass it while claiming it DOESN'T mean what it appears to mean.  (Both my PA Senators who voted for it ASSURED me in writing that it doesn't give the Administration power of indefinite detention of Americans in America, blah, blah, blah.)  3.  When signing it, The President publicly states HE wouldn't use it to do what it appears to say he CAN do (so much for being our civil rights Savior!).  4.  At some future date, start doing what it says can be done (and anyone who complains will be arrested and held indefinitely without counsel, charge or notice: disappeared!).

This is nothing new.  The liberal German government which PRECEDED Hitler enacted national gun registration, claiming it would help reduce crime and would never be used to confiscate private firearms.  Ha!  Hitler took power and in order to solidify his power and pave the way for more power, he began using the registration lists to confiscate privately held firearms on the national data base, starting with Jews, Gypsies and others he hated, and then moving on to political enemies and dissenters.  Once he had collected enough firearms, then the real party started as he and his brown shirts could operate with little fear of resistance and the German people knew it.

If the NDAA is not stopped and a real oppression happens in which 1021 is used against us, I wonder what history will think of The One's civil rights record? (Probably what I think of it today.)

"May the odds be ever in your favor!"

Dogs_In_A_Pile's picture
Dogs_In_A_Pile
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Possibly....

thc -

Good points and I certainly hope you are incorrect.  One stark difference I see is that Hitler had a "plan" (albeit a shitty one) that spanned decades and was very forward looking.  Our leadership can only see as far as their next election cycle.

Unless that's part of the new Final Solution........

Doug's picture
Doug
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safewrite wrote: Just

safewrite wrote:

Just reading all this now after being away on a working vacation--science fiction writing and editing-related--a trip during which where I briefly met with Robbie Robinson! 

Which one? Body builder, math professor, footballer, book shop owner, or did you mean Robbie Robertson, musician and former Band member?

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