Daily Digest

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Daily Digest 2/12 - Too Big To Succeed, Student Loans Going Way Of Housing

Tuesday, February 12, 2013, 3:05 PM

Economy

Show This To Anyone That Believes That “Things Are Getting Better” In America (Nervous Nelly)

As a result of our very foolish short-term thinking, we have now run up a national debt of 16.4 trillion dollars. It is the largest debt in the history of the world, and it has gotten more than 23 times larger since Jimmy Carter first entered the White House.

SEC To Second Circuit: ‘Please Don’t Make Us Do Our Jobs!’ (Thomas C.)

When I first got there, the TV only showed the floating face and torso of Judge Rosemary Pooler, joining the proceedings from the Northern District of New York, in a courtroom that looked eerily like the backdrop to a hostage video with sparse, utilitarian walls, a light switch and a flag. I felt bad watching her sit like an interviewee in a green room with a hundred lawyers and journos watching her every move. It felt like Legal Big Brother.

Why is the U.S. Losing the Cleantech Race with China? (adam)

Martenson cites battery technology as an example in which government research and investment could reap large benefits. “Electrical storage is a big limiting factor on renewables. If we had a better way to store energy, we could reduce reliance on fossil fuels and nuclear. What we need is a Manhattan-Project approach to advancing battery technology. China is pushing ahead to solve that equation, as well they should. The whole world should be doing that right now.”

Too Big to Succeed (westcoastjan)

As the crisis continued to unfold it became clear that few, including myself, had understood what could go wrong. What had seemed a relatively straightforward asset was too complex to be managed in such an ad hoc manner.

Student Loans Going the Way of Housing (Thomas C.)

“This situation is simply unsustainable, and we’re already suffering the consequences,” stated FICO analyst Andrew Jennings. “When wage growth is slow and jobs are not as plentiful as they once were, it is impossible for individuals to continue taking out ever larger student loans without greatly increasing the risk of default.”

Horsemeat scandal: 'Too trusting' on meat supplies (jdargis)

MPs rejected a motion calling for the government to ensure that the police and fraud specialists investigate criminal networks involved in horsemeat adulteration and speed up the FSA tests to restore consumer confidence.

North Korea Confirms It Conducted 3rd Nuclear Test (jdargis)

Many nations initially detected the test as seismic activity centered near the same location where the North conducted tests in 2006 and 2009. The United States Geological Survey said it was only a kilometer underground, an indication consistent with a nuclear blast. And in Vienna, the organization that monitors the Comprehensive Nuclear Test Ban Treaty said that tremor had “clear explosionlike characteristics.”

Snowbound Residents Improvise Their Escape (jdargis)

“We have a woman with cancer who can’t get to her treatments. There’s a woman who requires blood transfusions, and her husband has a heart condition,” Flo Marra, who lives in the first house cleared, said, pointing to the two-story wood cottages in her multiethnic middle-class neighborhood in north Bridgeport. On Saturday and Sunday, she and her brother had cleared both sidewalks on their block with his snow blower and her snow shovel.

Gold & Silver

Click to read the Gold & Silver Digest: 2/11/13

Provided daily by the Peak Prosperity Gold & Silver Group

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."

6 Comments

Tall's picture
Tall
Status: Gold Member (Offline)
Joined: Feb 18 2010
Posts: 289
Food and water, more precious than gold

Corporations, investors 'grabbing' land and water overseas
As a growing population stresses the world's food and water supplies, corporations and investors in wealthy countries are buying up foreign farmland and the freshwater perks that come with it. From Sudan to Indonesia, most of the land lies in poverty-stricken regions, so experts warn that this widespread purchasing could expand the gap between developed and developing countries. The “water grabbing” by corporations amounts to 454 billion cubic meters per year globally, according to a new study by environmental scientists. That’s about 5 percent of the water the world uses annually.

http://www.environmentalhealthnews.org/ehs/news/2013/land-grabbing

New Era of Food Scarcity Echoes Collapsed Civilizations
The world is in transition from an era of food abundance to one of scarcity. Over the last decade, world grain reserves have fallen by one third. World food prices have more than doubled, triggering a worldwide land rush and ushering in a new geopolitics of food. Food is the new oil. Land is the new gold.

http://www.earth-policy.org/book_bytes/2013/fpepch1

Nate's picture
Nate
Status: Gold Member (Offline)
Joined: May 6 2009
Posts: 461
outstanding quote

Tall wrote:

Food is the new oil. Land is the new gold.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 2775
News Repost + 1

Headlines posted earlier:

Yen steady, euro rises after G7 fires currency warning

G-7 Won’t Target Exchange Rates Amid Currency War Concern

Here's the +1 ("Yellen Says Fed’s Ballooning Balance Sheet May Generate Losses")

Tall's picture
Tall
Status: Gold Member (Offline)
Joined: Feb 18 2010
Posts: 289
Thanks Nate

Just to be clear, that is a quote from Lester Brown.  I wish I was so eloquent!

Michael_Armstrong's picture
Michael_Armstrong
Status: Member (Offline)
Joined: Aug 28 2011
Posts: 7
Re: Daily Digest 2/12 Too Big to Suceed, Student Loans Going Way

Here is what happens to the graduate who defaults as the system is currently set up. The default goes on their credit report. When the economy improves and there are more jobs, a prospective employer will look at the graduate's poor credit report and will not hire them. And that will happen over and over again.

It will not happen to just that one graduate but millions of others who default because the economy sucks and cannot get a job to pay their loans. Furthermore, those loans cannot be discharged in bankruptcy like housing loans. They  are there for life or until paid. Since the defaulters cannot get jobs to pay off their loans the fees and interest will get higher and higher (Sound familiar?)

These people will not be able to get any job skills from traditional employment. The defaulter will be unemployable forever. They will never buy houses and cars and the so called great things society has to offer let alone make investments.

So, reading that 50% of college loans are in deferment and ...who knows how many of those will go into default... but I'd say the number is huge. We are in big trouble.

TyroneC's picture
TyroneC
Status: Member (Offline)
Joined: Mar 27 2013
Posts: 1
Student loan

Student loan is stunting the growth of the economy. Loans have increased by 500% over past decade. As the next generation graduates from college, they are plagued by insurmountable debt that places demands on their income, limiting their ability to spend their earnings in ways that stimulate the economy.Article resource:get additional information
 

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