Daily Digest - July 24
- Sprott: It's the Real Economy, Stupid (White paper)
- Two Biggest US Pension Funds Suffer Huge Losses
- Student loans (H/T Carlos)
- Opposition to state budget deal mounts; 27,000 inmates to be freed
- More bodies go unclaimed as families can't afford funeral costs
- CRE Developer: "We’re dumbfounded"
- Investors Just Witnessed the Perfect Bear Trap (H/T Jeff Borsuk)
- A $6,500,000,000,000.00 CRE Wave & Somewhat Concerned?
- S&P 1990 - Present (Chart)
Calpers, the largest U.S. pension fund, said on Tuesday it suffered a record 23.4 percent drop in the value of its assets in the last year.
Assets fell to $180.9 billion on June 30 from $237.1 billion a year earlier, the California Public Employees' Retirement System, or Calpers, said. "This result is not a surprise; it is about what we expected given the collapse of markets across the globe," Joe Dear, the fund's chief
investment officer, said in a statement.
Reporting from Sacramento -- Less than 24 hours after Gov. Arnold Schwarzenegger and legislative leaders announced a plan to close California's massive budget deficit, Los Angeles County officials moved to sue the state, a union for government workers said it might strike, and Republicans threatened to back out of the deal over a provision to cut the number of prison inmates by 27,000.
The poor economy is taking a toll even on the dead, with an increasing number of bodies in Los Angeles County going unclaimed by families who cannot afford to bury or cremate their loved ones.
At the county coroner's office -- which handles homicides and other suspicious deaths -- 36% more cremations were done at taxpayers' expense in the last fiscal year over the previous year, from 525 to 712.
“We’re dumbfounded. We’ve been working on this deal for four-and-a-half years. I don’t know how, all of a sudden, the numbers don’t work.”
JMW Development Principal Mark Johnson
From the Minneapolis / St. Paul Business Journal: SuperTarget planned for Woodbury now on hold (ht Arnold)
Target recently informed JMW that it would not proceed with the project unless it receives “a pretty significant discount” from its previously negotiated deal, JMW Principal Mark Johnson said.
“We’re dumbfounded,” Johnson said, noting that Target officials had told him as recently as June 24 that the project was on track.
Maybe Target has lowered their retail sales estimates for the store? Just saying ...
Bear Traps Are Warning
In having risen above the breakdown line, the sell signal was aborted. Technicians disagree about the meaning of this aborted signal. Some say it was a sign of special strength that prices did not fulfill the technical forecast of this formation.
But others, including Edwards and Magee, the authors of the first comprehensive book on technical analysis, come to a totally different conclusion …
They argue that the market signaled weakness by showing a topping formation in the first place. And the reality of this weakness should be treated with respect — as a harbinger of more weakness to come relatively soon.
We are somewhat concerned about that sector and are paying very close attention to it.