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Daily Digest 6/25 - Keeping The American Dream Alive, AZ Town Fights For Its Water

Monday, June 25, 2012, 7:36 AM

Economy

Keeping The Dream Alive (jdargis)

What was new was the specific phrase Adams was using: the American Dream. From John Winthrop and the Puritan search for an earthly "city upon a hill" in the New World to Benjamin Franklin's "The Way to Wealth" aphorisms to Horatio Alger and the drama of the upwardly mobile, Adams' phrase had — and has — the deepest of roots in the American experience. For reasons ranging from geography to market capitalism to Jeffersonian ideas of liberty, we may well be the only people on the planet who tend to believe without irony that Thomas Paine was right when he declared that "we have it in our power to begin the world over again."

Michael J. Burry: Failed Ideologues are Writing Reality out of the History of the Economic Crisis (Jaime)

Michael J. Burry, in the video below, delivers the keynote address at the 2012 UCLA Department of Economics Commencement. In it, he describes the process he undertook in determining that the credit bubble would pop, the housing sector would crash, and that the financial world's blindness to the obvious would, if property harnessed, vault him into the 1%. All of it t was 100% foreseeable. There was no "black swan". Yet, our most esteemed economic leaders were completely blind to it.

David Walker, Former U.S. Comptroller General: Correcting America's Fiscal Imbalances (woodman)

Through his efforts with Comeback America Initiative, Walker aims to remain a non-partisan voice for lawmakers in the hopes of correcting America’s federal, state and local fiscal imbalances.

Greece’s New Leaders to Miss Crucial Meeting (jdargis)

In the interim, a billion euros, or $1.26 billion, in financing that the European Union withheld from Greece until a government was installed is scheduled to be released by the end of the month. The release may avert the possibility of Greece defaulting on some debt — at least for now. But Athens will get to keep only about 100 million euros, or about $125 million; the rest will go toward paying Greece’s contribution to the European Stability Mechanism.

Pressure for Action at Brussels Meeting (jdargis)

Wolfgang Schäuble, the German finance minister who is known as an advocate of a stronger European central government, said in an interview published Sunday that Germany may need to hold a referendum on a new constitution within several years, to make it easier for the country to cede budgetary authority. “In some important political areas we need to transfer more jurisdiction to Brussels, so that not every decision can be blocked by any member state,” Mr. Schäuble told the magazine Der Spiegel.

Greece's New Centrality - and Dilemmas - in Energy (OPA)

In addition, the Greek Ministry of Energy recently approved the acquisition by Ægean Energy of a 70 percent interest in the Sea of Thrace offshore concession license. This offshore field, located in the north-eastern Ægean near Turkey, comprises an area covering a total of 1,600 square kilometers. Further, in 2009 Energean also acquired a 2,000 sq.km. 2D Seismic survey for offshore Greece identifying new exploration targets, currently being evaluated. This seismic survey is a geological research product and it shows the indications for hydrocarbon reserves in the specified area.

Norwegian Oil Workers Threaten to go on Strike if Negotiations Fail (OPA)

Gro Losvik, an official at Industri Energi, the largest Union taking part in the negotiations, admitted that “at this time I would assess the risk for a strike as 50/50. We have a plan for expanding the strike if we have to, but we are hoping to avoid this through negotiations.”

With Wild West Spirit, Tombstone Fights for Its Water (jdargis)

Tombstone’s water system is as old as the city itself, and most of the parts that are functioning, which are few, were damaged last year by rocks and trees dragged downhill by runoff from the summer monsoons. The city set out to repair the system’s connections to three of the 25 springs to which it claims to have a right; connections to the other springs are inoperable or nonexistent.

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."

12 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
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Moody's is said planning to cut Spain-bank ratings

Once again I'm having trouble posting the links, so use Google News search to get more details. I'll try posting these later.

•Moody's is said planning to cut Spain-bank ratings
"Moody's Investors Service plans to announce a massive downgrade of Spanish banks ratings later Monday, probably after the close of the U.S. stock market at 2100 GMT, Spanish newspaper Expansion reports Monday, citing banking sector sources.

Most of the sector is expected to drop into junk rating, with only the largest banks like Banco Santander SA (SAN.MC), Banco Bilbao Vizcaya Argentaria SA (BBVA.MC) and CaixaBank SA (CABK.MC) avoiding that fate, the newspaper adds."

Fitch downgrades Cyprus to BB+, negative outlook

Spain sends official aid request to EU

France fights to avoid euro zone bank contagion

Spanish, Italian Debt Protection Costs Rise, Pre-Summit Caution

India Boosts Foreign Debt Cap by $5 Billion to Defend Rupee

France needs billions to meet deficit target

Report: City Pension Debt At More Than $27 Billion (Chicago)

Spain's banks, government co-dependent on debt

Bankruptcy decision looms for Stockton next week

Cyprus to hold crisis talks as bailout looms

Greece Breached Bailout Rules With Staff Hirings: Report

Four state pensions funds have $12B gap (Arizona)

BRICs Biggest Currency Depreciation Since 1998 to Worsen
 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
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Moody's is said planning to cut Spain-bank ratings
  • Moody's is said planning to cut Spain-bank ratings

http://www.marketwatch.com/story/moodys-is-said-planning-to-cut-spain-bank-ratings-2012-06-25

"Moody's Investors Service plans to announce a massive downgrade of Spanish banks ratings later Monday, probably after the close of the U.S. stock market at 2100 GMT, Spanish newspaper Expansion reports Monday, citing banking sector sources. "

saxplayer00o1's picture
saxplayer00o1
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Be afraid: Some in U.S. see shades of 2008 in euro crisis

Be afraid: Some in U.S. see shades of 2008 in euro crisis

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
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Posts: 2817
Be afraid: Some in U.S. see shades of 2008 in euro crisis

After trying multiple times today I still can't get this to post here with the links. Again, please use a Google News search on the headlines for more info. Due to the crisis in Europe I may be giving updates fairly often for the next few days:

=============================================================================

  • Be afraid: Some in U.S. see shades of 2008 in euro crisis

"They see a fractured Europe fiddling in the near term, attempting to seal one fissure as another larger one appears while they talk about a five-to-10-year timeframe for real solutions, such as a more fiscally integrated euro zone. They see investors who want solutions in the next few weeks and months or else nations like Spain and Italy could find they cannot borrow at all on capital markets, starting an economic firestorm that would make today's problems seem mild.

Some even suggest markets are taking on shades of the 2008 global crisis, with the potential for a collapse in investor confidence, bank runs in Europe and a seizure for the global financial system."

saxplayer00o1's picture
saxplayer00o1
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Posts: 2817
Central banks hold 30% of global GDP

Central banks hold 30% of global GDP
http://www.guardian.co.uk/business/2012/jun/24/central-banks-gdp

"Bank for International Settlements reports that world's central banks are holding £11tn after purchasing government bonds
Almost 30% of global GDP, or $18tn (£11tn), is held by central banks after purchasing government bonds and pumping liquidity into the financial system to ease the current crisis.

This is double the level of ten years ago, according to the latest annual report from the Bank for International Settlements.

The BIS said: "The extraordinary persistence of loose monetary policy is largely the result of insufficient action by governments in addressing structural problems. Simply put: central banks are being cornered into prolonging monetary stimulus as governments drag their feet and adjustment is delayed."

Ahead of this week's European summit, the BIS said it was difficult to escape the idea that a solution to the eurozone crisis required a pan-European banking system – a plan which is not supported by all eurozone members."

========================

Please notice Spanish 10 year bond yields, now over 6.6%: http://www.marketwatch.com/investing/bond/10YR_ESP?countrycode=ES&link=MW_story_quote

Itailian 10 year bonds are also now over 6%: http://www.marketwatch.com/investing/bond/10YR_ITA?countrycode=IT&link=MW_story_quote

and a very dramatic rise in the Italian 2 year: http://www.marketwatch.com/investing/bond/2YR_ITA?countrycode=IT&link=MW_story_quote

dps's picture
dps
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Joined: Jun 27 2008
Posts: 442
3 comments in this thread: 

3 comments in this thread:  number 2, number 10 and number 11.  Looks like a bug to me.  This post turns out to be number 12. 

rjs's picture
rjs
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 377
peak prosperity fail

saxplayer00o1 wrote:

After trying multiple times today I still can't get this to post here with the links. Again, please use a Google News search on the headlines for more info. Due to the crisis in Europe I may be giving updates fairly often for the next few days:

this is really sad...i only come here for the daily digest, and what saxplayer contributes had made it one of the best timely crisis news sources on the web...

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 2817
rjs

Thanks for the compliment.

It takes some time to work out any bugs with any new site and it must have been a tremendous job to make this many changes and improvements to this site. My compliments to all who have put this much time and effort into this.

Whatever the glitch is it only (sometimes) prevents me from posting the links. If there is anything that grabs my attention I'll post the text to the whole article if necessary. Nothing will be missed. Even strange ones like this (for now it looks like I can post links):

Bankers turning seamen on defaulting loans

In sort of a repeat of what I said earlier I may be posting quite a bit more here for the next week or so. The crisis in Europe is quickly getting out of control. If no solution is found we may find things getting interesting more quickly than most people would expect. Stay tuned.

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Auctions ‘litmus test’
In the interim, the Treasury will sell $99 billion in U.S. notes, beginning on Tuesday with $35 billion in 2-year notes.

On Wednesday it will auction $35 billion in 5-year debt, followed by $29 billion in 7-year notes .

France Plans Cuts but ‘Rejects’ Idea of Austerity

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
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Posts: 2817
Moody's cuts debt ratings of 28 Spanish banks

"Among the lenders suffering rating cuts were Spain's two biggest international banks: Banco Santander and Banco Bilbao Vizcaya Argentaria.

A downgrade usually means that banks will have to pay more to service their debt. Investors demand higher interest for riskier debt, which is what the downgrades represent.

Spain formally asked the European Union on Monday for rescue loans to help clean up its troubled banking industry. The Spanish economy, the fourth-largest of the 17 countries that use the euro currency, is suffering from the aftershocks of a real estate bust that has devastated families as well as banks. Unemployment is nearly 25 percent.

The Spanish government's financial fate is intertwined with that of the country's banks. Two-thirds of the government bonds are owned by Spanish banks, pension funds and insurance companies."

"The European Union would gain far-reaching powers to rewrite national budgets for eurozone countries that breach debt and deficit rules under proposals likely to be discussed at a summit this week, according to a draft report seen by the Financial Times...........Berlin has demanded tough controls over national budgets as a prerequisite for mutualizing sovereign debt within the eurozone and the proposals appear to be an effort to get the German government to support a move towards commonly-issued eurozone bonds.

Under the plans for closer fiscal union, the European Commission would present detailed adjustments for a country in breach of its commitments. The changes would be put to a vote of all other EU countries.".....

Officials cautioned the report is still a work in progress. The four co-authors – Herman Van Rompuy, European Council president; José Manuel Barroso, European Commission president; Mario Draghi, European Central Bank chief; and Jean-Claude Juncker, chair of the eurogroup of eurozone finance ministers –

Warning of a house-price bubble…in Norway

Members of Congress adjusted portfolios during economic crisis

EU summit seems doomed before it starts

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 2817
A collapse of eurozone could spark extremism, head of MI5 warns

A collapse of eurozone could spark extremism, head of MI5 warns

"Jonathan Evans, the head of MI5, raised the prospect of a rise in extremism in the UK should euro nations go in to meltdown. "

We could see a 1931-type collapse if no one steps up (Paul Krugman)

Portugal Pushes Ahead with Bailout Despite Growing Pains

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 2817
War on tax evasion squeezes crisis-hit Italians

"Tempers are fraying at Italy's tax offices, as higher bills and a government clamp-down on evaders has driven recession-hit Italians to vent their anger on the country's most hated institution.

"There's no end to it. Each day the noose tightens around our necks, and the more they tighten the screws, the less we can pay," one young businessman Gianbattista Tagliani told AFP."....................
"But the strain on ordinary Italians has sparked a series of attacks on the tax agency.

A parcel bomb, which exploded in an Equitalia office and wounded a director last December, set off a chain of attacks on taxmen and offices across Italy.

There is also resentment over benefits enjoyed by privileged politicians, accused of living the good life while the rest of the country pays its dues."

Wendy S. Delmater's picture
Wendy S. Delmater
Status: Diamond Member (Offline)
Joined: Dec 13 2009
Posts: 1608
all dressed up and no place to go

Oil Price Differentials: Caught Between The Sands And The Pipelines

Shale and tar sand crude oils are in the wrong place for our infrastructure.

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