Daily Digest

Daily Digest 6/9 - Spain In Need Of $46B Bailout, Fight To Lead Union Heats Up, The Resource Shortage Is Real

Saturday, June 9, 2012, 9:56 AM
  • Ignorance Is A Temporary Condition
  • Spanish Banks Need $46 Billion, I.M.F. Says in Audit
  • Pressure Mounts for Spain to Request a Banking Bailout
  • Spain: Simmering Anger In Seville
  • The 5 Questions You Need to Ask Your Financial Advisor Right Now
  • Trustee Sees Customers Trampled at MF Global
  • For Labor, A Fight To Lead Heats Up
  • The Resource Shortage Is Real

Follow our steps to prepare for a world after peak oil, such as how to store & filter water

Economy

Ignorance Is A Temporary Condition (David B.)

Paying with cash, actually pulling the money from a wallet or purse is a vivid enough action to elicit a negative, and in some consumers a mildly painful, psychological reaction that’s absent when either a credit or debit card transaction takes place.

“The impulse dances inside the debt.” Jareb Teague

Spanish Banks Need $46 Billion, I.M.F. Says in Audit (jdargis)

In a statement accompanying the audit, the fund said that the “core” of Spain’s financial sector is “well managed and appears resilient to further shocks.” But the report said that significant vulnerabilities remain, particularly among smaller banks and those with bigger exposure to the Spanish housing sector.

Pressure Mounts for Spain to Request a Banking Bailout (jdargis)

Fitch announced Thursday after the close of trading that it had cut Spain by three steps, leaving it to two notches above junk. The agency cited Spain’s economic problems and the cost of recapitalizing its struggling financial sector, which Fitch said could reach as much as 100 billion euros, or $125 billion.

Spain: Simmering Anger In Seville (jdargis)

Right now, policymakers across Europe have to be thankful for Pasion Sevilla and its cornets, Triana with its statues and incense, the tight knots of local people gathered at the corners of tiny cobbled streets. Because family and tradition, religion, brass bands and social solidarity are all that's holding many communities in Spain together.

The 5 Questions You Need to Ask Your Financial Advisor Right Now (David B.)

The problem faced by many investors today is that they’ve always thought in terms of returns rather than risks. That’s backwards, especially at a time when the riskiest investments – bonds – were supposed to be the most secure.

This is compounded by the fact that many investors — having lost big twice in the last decade –remain underinvested and are faced with playing catch-up. They never should have stepped off the court in the first place.

Trustee Sees Customers Trampled at MF Global (jdargis)

Responsibility for accessing funds in segregated customer accounts and transferring them elsewhere rested with one employee, Edith O’Brien, an assistant treasurer in Chicago who reported to the firm’s treasurer in New York, who in turn reported to the chief financial officer, Henri Steenkamp. The treasury division’s main responsibility was meeting Mr. Corzine’s increasingly frantic demands for liquidity to support his high-risk and ultimately disastrous bet on the debt of shaky European nations.

For Labor, A Fight To Lead Heats Up (jdargis)

The union’s membership — nearly 1.4 million last year — has fallen as many states and cities have laid off workers. Labor experts expect that Tuesday’s election results in Wisconsin, San Diego and San Jose will embolden officials elsewhere to seek to curb collective bargaining and cut pensions for public sector employees. And the union, which worked hard to elect President Obama in 2008, is going up against far more Republican money in this year’s presidential election.

The Resource Shortage Is Real (Jeff B.)

Put simply, the world’s dwindling supplies of arable land, fresh water, energy and minerals — essential for the production of food and appliances such as mobile phones, cars, televisions and washing machines — cannot meet rising global demand.

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."

7 Comments

thc0655's picture
thc0655
Status: Platinum Member (Offline)
Joined: Apr 27 2010
Posts: 666
MF Global/NYTimes

The NY Times article on MF Global in which the reporter demands prosecution to the full extent of the law and a summary of what was illegally done by MF Global is most interesting because it appeared in the NY Times.  The Times can normally be counted on to treat Democratic and liberal celebrities like Jon Corzine with the utmost deference possible. So I'm wondering: does this article signal that a decision has been made at the highest levels of TPTB to sacrifice Corzine for his ham-handed criminal acts (and therefore save themselves).  Interesting possibility.  We can always hope he'll go to jail.  I certainly cling to that hope, and hope further he's the first of many!! 

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 1626
Interesting comment,

Interesting comment, thc0655.  We can certainly hope.

Ken C's picture
Ken C
Status: Platinum Member (Offline)
Joined: Feb 13 2009
Posts: 753
HOPE

pinecarr wrote:

Interesting comment, thc0655.  We can certainly hope.

Indeed, look what "Hope and Change" has done for us so far.

Doug's picture
Doug
Status: Diamond Member (Offline)
Joined: Oct 1 2008
Posts: 2771
news coverage

Being a recovering Sunday morning blabfest addict, I am relapsing this morning.  So far I haven't heard a word about the European collapse, the ongoing collapse in the US or the rampant criminality on Wall St.  Instead I am hearing about the political horse race and the nearly continuous obsession with sound bites of the two "major" candidates and their shills.  There is no longer a shred of integrity in DC or the media that cover it.

Doug

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 1626
Doug wrote: Being a

Doug wrote:

Being a recovering Sunday morning blabfest addict, I am relapsing this morning.  So far I haven't heard a word about the European collapse, the ongoing collapse in the US or the rampant criminality on Wall St.  Instead I am hearing about the political horse race and the nearly continuous obsession with sound bites of the two "major" candidates and their shills.  There is no longer a shred of integrity in DC or the media that cover it.

Doug

I know what you mean, Doug.  I used to love watching the "news" shows every Sunday morning too.  Tim Russert was my favorite, but I used to watch 2 or 3 Sunday news shows back to back.  Now, I don't even have any interest in tuning in to then, or any mainstream news.  Well , except now and then to hear what the  general public is being fed, and to get a sense of the public's current state of awareness (or lack thereof).  Main stream news shows just seems like an irrelevant distraction from things that really matter . 

Mr. Fri's picture
Mr. Fri
Status: Silver Member (Offline)
Joined: Feb 21 2009
Posts: 208
[pinecarr wrote: Doug

[

pinecarr wrote:

Doug wrote:

So far I haven't heard a word about the European collapse, the ongoing collapse in the US or the rampant criminality on Wall St

Doug

Now, I don't even have any interest in tuning in to then, or any mainstream news.  Well , except now and then to hear what the  general public is being fed, and to get a sense of the public's current state of awareness (or lack thereof).  Main stream news shows just seems like an irrelevant distraction from things that really matter . 

This morning when I woke up and listened to the top-of-the-hour news on the radio, there was a story about how China is preparing for the Euro's collapse which will be comming soon.  This was the first time I've heard this type of story on the MSM.  I was hoping that may people listening would be thinking, "If China is preparing, I wonder what I should be doing?"

earthwise's picture
earthwise
Status: Platinum Member (Offline)
Joined: Aug 10 2009
Posts: 832
Re TV/News: Best thing I ever did....

....well almost, considering wife, kids etc.  But turning off and tuning out not only gave me a fresh perspective but a whole lot more productive time.  TV is the chief conduit of The Matrix. Unplug.

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