Daily Digest

Daily Digest - July 16

Thursday, July 16, 2009, 11:02 AM
  • Summers: I don’t think the worst is over
  • New Live Poll Allows Pundits To Pander To Viewers In Real Time (Humor, H/T DavidC)
  • Goldman executives sold $700m of stock
  • House bill to hit millionaires with 5.4 pct surtax
  • Obama mulls rental option for some homeowners
  • Eliot Spitzer on Goldman Sachs...(Video)
  • Yes, Unemployment Is Worse Than Reported (Map on page)
  • Elizabeth Warren, Chair of the Congressional Oversight Panel for TARP (Video on page)
  • June Retail (Chart)
  • Producer Price Index (PPI Chart on page)

Economy

Summers: I don't think the worst is over

Summers turns sombre: “I don’t think the worst is over ... It’s very likely that more jobs will be lost. It would not be surprising if GDP has not yet reached its low. What does appear to be true is that the sense of panic in the markets and freefall in the economy has subsided and one does not have the sense of a situation as out of control as a few months ago.”

New Live Poll Allows Pundits To Pander To Viewers In Real Time (Humor, H/T DavidC)

Goldman executives sold $700m of stock

The surge in selling among Goldman partners, at a time when the US government had thrown a lifeline to Wall Street, is likely to draw criticism from lawmakers on Capitol Hill. Having survived the crisis, the bank is expected to report strong second-quarter earnings on Tuesday on rebounding trading profits.

For the eight-month period for which figures are available, Goldman partners sold more than $691m in company stock, even as the firm expanded its public float from 395m to 503m shares in several capital raises.

For the comparable period between September 2007 and April 2008, when the average share price was substantially higher, Goldman partners sold about $438m in stock.

A spokesman declined to comment on the sales, other than to note that Goldman partners receive a big share of annual bonuses in stock, and that for many, stock sales are an effort to diversify their holdings.

House bill to hit millionaires with 5.4 pct surtax

WASHINGTON, July 14 (Reuters) - A sweeping overhaul of the U.S. healthcare system to be announced on Tuesday in the U.S. House of Representatives will include a surtax on millionaires of 5.4 percent, congressional sources said.

Obama mulls rental option for some homeowners

Under one idea being discussed, delinquent homeowners would surrender ownership of their homes but would continue to live in the property for several years, the sources told Reuters.

Officials are also considering whether the government should make mortgage payments on behalf of borrowers who cannot keep up with their home loans, tapping an unused portion of a $50 billion housing aid kitty.

Eliot Spitzer on Goldman Sachs...(Video)

Yes, Unemployment Is Worse Than Reported (Map on page)

Elizabeth Warren, Chair of the Congressional Oversight Panel for TARP (Video on page)

Note: My personal view is that in a financially literate world, almost all borrowers would pay off their credit card balances monthly (there are exceptions).

June Retail (Chart)

Producer Price Index (PPI Chart on page)

23 Comments

tuckershaver's picture
tuckershaver
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Re: Daily Digest - July 16

Homeowners to rent own homes.  Makes me wish i had bought a 2mil waterfront estate and lost my job.  Get to stay and play on the h2o on the taxpayer dime.  the new american way

Ready's picture
Ready
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Re: Daily Digest - July 16

Live Poll.... LMAO!!!

gregoro's picture
gregoro
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Re: Daily Digest - July 16

Kudos to Chris for getting advertising revenue from a credit reporting company (below)....but I wonder how many people on this site would buy anything that Ben Stein is selling!  They should have hired Chris to hold the clipboard!

Greg

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NMNJGRL
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Re: Daily Digest - July 16--Roubini

Seems like everybody is giddy on CNBC today about what Roubini purportedly said:--that we're past worst re: the financials and the economy...

I have to track down what he actually said, because if I recall correctly from the Bloomberg News Shiller/Roubini panel that I saw a couple of days ago, both didn't seem that optimistic!

I'm not sure when that panel actually  was held, so maybe it was old??

LogansRun's picture
LogansRun
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Re: Daily Digest - July 16

Maybe Roubini had positioned himself in the market before his remarks so he could pull a Goldman Sachs or Merideth Witney;-)

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Davos
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Re: Daily Digest - July 16

Joe Biden: ‘We Have to Go Spend Money to Keep From Going Bankrupt’

“We’re going to go bankrupt as a nation,” Biden said.

“Well, people when I say that look at me and say, ‘What are you talking about? You’re telling me we have to go spend money to keep from going bankrupt?’” Biden said. “The answer is yes, I’m telling you.”

DavidC's picture
DavidC
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Re: Daily Digest - July 16

Hi LogansRun

I've posted this link elsewhere  - I've watched the Meredith Whitney video where she 'caused' the big rise in the markets the other day. Joe Saluzzi, of Themis, was on Bloomberg later the same day and said that Whitney was actually very bearish and the market had latched on to the one thing it wanted to, ignoring the rest of her talk. He's right.

dailybail.com/home/meredith-whitney-says-unemployment-will-reach-13-cnbc-clip.html

There was a piece about her in tonight's Evening Standard (a London newspaper - I don't have a link unfortunately) that was, once again, focusing on that one point and ignoring everything else she said during her interview.

One further point - if she's so good, the low for Goldman in this crisis was around $50 in November 2008 and it has been climbing since around $75 in March, so why has she only just got round to recommending it?

DavidC

Davos's picture
Davos
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Re: Daily Digest - July 16

I wonder if the VP is applying for this job. I mean, based on the above comical comment...

Treasury Position

The Contractor shall conduct two, 3-hour, Humor in the Workplace programs that will discuss the power of humor in the workplace, the close relationship between humor and stress, and why humor is one of the most important ways that we communicate in business and office life. Participants shall experience demonstrations of cartoons being created on the spot. The contractor shall have the ability to create cartoons on the spot about BPD jobs. The presenter shall refrain from using any foul language during the presentation. This is a business environment and we need the presenter to address a business audience.

idoctor's picture
idoctor
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Re: Daily Digest - July 16

Davos I haven't had a good laugh like that in a while...thanks. Biden's article is truly amazing. You have to look pretty hard these days to find a bright politician let alone a honest one. IMHO a Martenson/Schiff ticket would be the way to go.

Does any one know...can you put up polls on this site?

straight's picture
straight
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Re: Daily Digest - July 16
 
For those interested in Gold prices ... this is the first i have heard of the new COMEX rules [and the jap gold futures market] allowing settlment of contracts not in PHYSICAL gold but in gold ETF's !  in my mind this is HUGE news and i am surpirsed i have not heard it earlier.  this is manipulation of the most blatent and overt kind.
 
This article has some very interesting technical analysis of seasonality in gold price as well.
 
DavidC's picture
DavidC
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Re: Daily Digest - July 16

Hi Davos,

Nah! Go on, I've got a sense of humour! That Treasury position is a joke, right?! What, you mean it's NOT?!

And Joe Biden didn't REALLY say that, did he?!

DavidC

idoctor's picture
idoctor
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Re: Daily Digest - July 16

Roubini: Views on Economy Unchanged Despite Reports

http://www.cnbc.com/id/31947275

http://www.cnbc.com/id/31949840

Matt Holbert's picture
Matt Holbert
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Re: Daily Digest - July 16

The anti-Biden

Take a look at this Ron Paul interview...

tinyurl.com/lyrxdb

One can admire the compassion of Elizabeth Warren, but it's important to get to the heart of the matter.  Ron Paul reminds us that big government does not equal freedom -- or better health care.

All of the Aaron Task segments with Paul are good -- IMHO. 

propamanda's picture
propamanda
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Re: Daily Digest - July 16

Straight,

That IS huge.

straight wrote:
 
For those interested in Gold prices ... this is the first i have heard of the new COMEX rules [and the jap gold futures market] allowing settlment of contracts not in PHYSICAL gold but in gold ETF's !  in my mind this is HUGE news and i am surpirsed i have not heard it earlier.  this is manipulation of the most blatent and overt kind.
 
This article has some very interesting technical analysis of seasonality in gold price as well.
 

Thank you for the article.  Also, there is a link on that page to this one explaining the situation.

http://www.gata.org/node/7586

Woodman's picture
Woodman
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Re: Daily Digest - July 16

China’s Economic Growth Accelerates to 7.9% on Loans

http://www.bloomberg.com/apps/news?pid=20601205&sid=a4Ko6hXpm7dM

Can you find all the standard spin in the above news article?

idoctor's picture
idoctor
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Re: Daily Digest - July 16

56% of Americans Think You Should be Jailed or Fined if you Don't Buy Health Insurance

Enjoy!

VeganD's picture
VeganD
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Re: Daily Digest - July 16

idoctor

how easily the masses are brainwashed by TPTB.

scary to think of what else we as a nation would jail our fellow man for if it should please those in charge.

D

idoctor's picture
idoctor
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Re: Daily Digest - July 16

Yes Denise it is truly amazing...amazing how so few Americans know so little about their own system & what got us to this point. Most are too Twitter..pated or Spacebooked (facebook) out.

Marc Faber has some interesting points.

VeganD's picture
VeganD
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Re: Daily Digest - July 16

idoctor

I enjoy listening to Marc Faber, very matter of fact. In his discussion of unemployment he seems genuinely distressed by the government's lies (it pains me to say it that way) regarding the unemployment rate in the U.S.. I think we could easily see 20 percent or more by the end of next year.

I think (personal opinion only) that it is very hard for some U.S. citizens to deal with the reality of how we are being misled, and now many are so proud to have an african american president, now we have to admit hypocrisy yet again. Ironically, or maybe with purpose, Obama's election may be suppressing people's rebellion. I say this having voted for him. I do not mean to offend with this idea, it is just the way it looks to me right now.  And it makes me kinda sad to see a good thing exploited in this way. Some are more powerful than the president it is becoming all too evident. 

Of course anyone who is for the first time out of work, losing their home, going to food banks for dinner, begging off friends and relatives, etc...knows the score too well even if they cannot admit it.

And yes, Twitter, Facebook, and Blackberry (my personal favorite) are opium.  But as the revolution in Iran proved, they can be put to good use too. But we do not feel the same level of moral victory if we rebel now. That is my theory at least. We will have to deal with rebelling against entities that define what we feel is good about us. Hard to do.

Enough of my thoughts. Worth the paper they are written on :). Thank you for the links!

D

idoctor's picture
idoctor
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Re: Daily Digest - July 16

Denise nice to hear your thoughts & I am glad you liked the links. You mention rebelling & I hear this a lot these days but what worries me about the dumbed down mass of Americans is that the rebellion is more likely to happen with these types of Americans rebelling for more entitlements or entitlements that have been taken away rather than rebelling for protecting our Constitution.

I have traveled to many different countries. Most places the people have sense enough to keep their act together well enough or they might go hungry if they are to big of screw up. Not so here in the USA where way too many know they get more for being a true mess. A major disconnect IMHO.

VeganD's picture
VeganD
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Re: Daily Digest - July 16

idoctor

Thank you for the feedback. I see your point about people expecting entitlements.  I am starting to realize I have a bias in this regard, probably brought on by my personal and educational background. It is easy to forget that people can scam the system and have a tendency to take advantage when given the opportunity.  I understand the frustration and I think your concerns are on target. 

Regards

D

Davos's picture
Davos
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Re: Daily Digest - July 16

A good way to start the day 

SagerXX's picture
SagerXX
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Re: Daily Digest - July 16

Thanks for the laugh, Davos.  I can always use one.  

It stupefies me that they haven't taken Cramer's mike away and asked him to go hide in his treehouse.  Stupefies.

Viva -- Sager

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