Daily Digest

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Daily Digest 10/2 - JP Morgan's Subprime Horror, Drought Forces Indians To Unearth Gold

Tuesday, October 2, 2012, 11:42 AM

Economy

Prepping for the Well-to-Do (mg)

I note plenty of suggestions and websites galore for the budget-challenged to prep ranging from buying a little extra each week---see the LDS shopping list for newlyweds---to hunting, fishing and foraging on state land. At the other extreme are those who can afford survivalist-consultants to build and stock extensive underground bunkers, which require the employ of a staff including farmer/serfs and Blackwater-type security. But no one is targeting the reality of the well-to-do (WTD), so I'm going to. It's not for class reasons, but because that's the kind of income it will take to get up to speed at this late date. And up-to-speed has recently been sped up to two years of stored items from six months.

Chris Hedges "Death of the Liberal Class" at The Sanctuary for Independent Media (Arthur Robey)

Chris Hedges, whose book "Death of the Liberal Class" (Perseus) came out the day of this presentation, is also the best-selling author of "War is a Force That Gives Us Meaning." Hedges, whose column is published Mondays on Truthdig, spent nearly two decades as a foreign correspondent in Central America, the Middle East, Africa and the Balkans. He has reported from more than 50 countries and has worked for The Christian Science Monitor, National Public Radio, The Dallas Morning News and The New York Times, for which he was a foreign correspondent for 15 years. Produced by The Sanctuary for Independent Media in Troy NY, this event was co-sponsored by Bethlehem Neighbors for Peace.

The Waste-Lands Of The Euro (Arthur Robey)

Today’s guest, Yanis Varoufakis, is a Greek Political Economist and Professor of Economic Theory at the University of Athens, and an expert in game-theory. We discuss the flawed design of the Euro, Francois Mitterand and Jacques Delors, the ECB and the Germans, the rise of a Greek Nazi Party and the spectre of Kosovo and Euro Waste-Lands.

JP Morgan's Subprime Horror (westcoastjan)

The main allegation against Bear Stearns - and thus against Bear's owner JP Morgan - is that the investment bank claimed to be checking that the loans going into the bonds were of reasonable quality through what is known as "due diligence" - but in practice it grotesquely and consciously failed to keep out the rubbishy mortgages.

Energy

Chinese firm pleads guilty in oil sands workers’ deaths (westcoastjan)

Twenty-one other charges against Chinese contractors on the Horizon project were withdrawn.

Warren Buffet Purchases Two Huge Wind Farms in California (James S.)

MidAmerican Energy Holdings announced yesterday that it has agreed to buy the two phases for an undisclosed fee.

The Alta Wind VII has a capacity of 168MW, and the Alta Wind IX has a capacity of 132MW; they boost MidAmerican Renewable’s total renewable energy portfolio to over 1.2GW.

Environment

Drought forces India’s farmers to unearth their gold (westcoastjan)

The potential for recycling is huge with India’s 1.2 billion people estimated to have stored up about 20,000 tonnes of gold in the form of jewellery, coins and bars, according to an estimate from industry body the World Gold Council – about three times the holdings of the U.S. Federal Reserve Board.

How much in food do Canadians waste a year? Think billions (westcoastjan)

Keep in mind, we’re not talking about the strawberries that have been sitting in your crisper so long they’ve got grey fuzz on them, or those tomatoes with the gross green splotches that stink. The report is talking about edible food that simply gets chucked. Why? Partly because we load our plates with giant portions we can never finish, partly because we throw out food based on best-before labels, even if we’re not reading them properly or the food is still good. But mostly we toss food because, unlike so many other places on earth, food is cheap to us.

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."

4 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 2766
saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 2766
Impressive jump on national debt numbers

Treasury Direct link

The Daily History of the Debt Results

Historical returns from 09/26/2012 through 10/01/2012

The data for the total public debt outstanding is published each business day. If there is no debt value for the date(s) you requested, the value for the preceding business day will be displayed.

( Debt Held by the Public vs. Intragovernmental Holdings )

 

Date Debt Held by the Public Intragovernmental Holdings Total Public Debt Outstanding
09/26/2012 11,253,922,532,438.69 4,761,914,765,193.68 16,015,837,297,632.37
09/27/2012 11,255,558,023,360.29 4,759,573,001,202.25 16,015,131,024,562.54
09/28/2012 11,269,585,800,039.32 4,796,655,607,346.57 16,066,241,407,385.89
10/01/2012 11,310,911,679,511.83 4,848,575,333,788.52 16,159,487,013,300.35

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 2766
Bernanke quote

This one couldn't wait for tomorrow's DD to come out. Here's the link. This man has completely lost it!!!

"Bernanke, setting the stage for a third round of quantitative easing in an Aug. 31 speech in Jackson Hole, Wyoming, said the strategy works in part by boosting the prices of assets such as equities. In a speech yesterday in Indianapolis he said higher stock and home prices would provide further impetus to spending by businesses and households.

“It’s pretty clear that the stock market is the most important transmission mechanism of monetary policy right now,” said Peter Hooper, chief economist at Deutsche Bank AG in New York. “That’s where you’re getting most of the action in terms of lift to the economy. It’s the stock market that’s going to have to be carrying the load.”"

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 3506
saxplayer00o1 wrote: This one

saxplayer00o1 wrote:

This one couldn't wait for tomorrow's DD to come out. Here's the link. This man has completely lost it!!!

"Bernanke, setting the stage for a third round of quantitative easing in an Aug. 31 speech in Jackson Hole, Wyoming, said the strategy works in part by boosting the prices of assets such as equities. In a speech yesterday in Indianapolis he said higher stock and home prices would provide further impetus to spending by businesses and households.

“It’s pretty clear that the stock market is the most important transmission mechanism of monetary policy right now,” said Peter Hooper, chief economist at Deutsche Bank AG in New York. “That’s where you’re getting most of the action in terms of lift to the economy. It’s the stock market that’s going to have to be carrying the load.”"

OMG.

Even if I completely spot him the idea that the Fed has any business at all targeting equity prices, I am aghast at just how out of touch that idea is.

Has he not noticed the concentration of wealth?  Is there no glimmer in his mind that perhaps boosting the net worth of the already (supremely) wealthy has practically no impact on the spending habits of the masses?

But beyond that completely obvious observation the idea that the tail can/should wag the dog is really a rather poor idea in general.  "If equities are up, the economy will follow!"  seems to be the idea.

I cannot disagree that the stock market is an important signaling device, but not if it's signaling the wrong things.  Sooner or later it loses that effectiveness to paint a smiley face on the situation and then whatever vestiges of trust remain in the public will waft off into outer space.

Good find SaxPlayer.  As always, thank you!

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