Daily Digest

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Daily Digest 3/16 - 'Dangerous' Financial Products Named, PA Unions: 'Stop Cutting Taxes'

Saturday, March 16, 2013, 12:18 PM

Economy

Greenspan Says Too Big To Fail Problem 'Is Getting Worse, Not Better' (Nervous Nelly)

“If they’re too big to fail, they’re too big,” Bloomberg News reports Greenspan said in October of 2009. “In 1911 we broke up Standard Oil -- so what happened? The individual parts became more valuable than the whole. Maybe that’s what we need to do.”

'Dangerous' financial products named (westcoastjan)

CDSs first came into the public view as one of the causes of the financial collapse in 2008. They allow investors to buy protection against bond issuers defaulting on their debts. In this case, the bonds were issued to finance the debt of emerging market countries such as China or Brazil.

Max Keiser: Is Bitcoin Money? (westcoastjan)

Bitcoin is a peer-to-peer, decentralized form of money; as durable as the Internet itself. Remember, the Internet or DARPA as it was originally called, was created as a fail-safe, global network with no 'single point of failure.' If one part goes down, data takes another route and nothing is lost. So on this point the answer is "Yes," Bitcoin is durable.

Philadelphia unions to City Council: Stop cutting taxes (Thomas C.)

But Butkovitz questioned whether lowering taxes was wise when the schools are struggling financially: "It's surreal to reschedule for July the business tax cuts when there's no plan in place to get the schools through the school year."

AFSCME estimates that maintaining current tax rates would boost city revenues by $50 million yearly, but Finance Director Rob Dubow said such a savings would only come in the future.

Parallel World of Finances (goldrunner1)

The invisible financial world is something the majority of people have no idea of. The major part of it is the shadow sector of world financial system – financial institutes and financial operations conducted under the cover of off-shores and falling out of the sight of financial regulators (central banks, ministries of finances, security and exchange commissions etc.) . One can only guess how large it is, there is no way to have a clear picture of what it is like because all the activities are conducted beyond any supervision. No books kept, no accounting before state structures exists. The world dwellers are criminal gangs related to drug trafficking, arms trade, slave trade and so on. It’s not even grey sector activities, but rather “black” economy breaching al norms of penal law. According to experts, the turnover is a few trillion dollars a year… Besides, the shadow sector encompasses various structures that do not hide underground. Many of them openly offer various services to individuals and corporations.

Shock in Cyprus as savers face bailout levy (westcoastjan)

While Cyprus may be one of the eurozone's tiniest economies - its third-smallest - there could be serious repercussions for other financially over-stretched economies, such as those of Spain and Italy, Robert Peston writes.

The point of the levy is as a caution to lenders to banks that they should take care where they place their funds, and avoid banks that overstretch themselves - as Cypriot banks did, he adds.

‘If You Ain’t a Gardener, You Ain’t Gangster’ (Thomas C.)

Finley didn’t remove his garden, and he wasn’t arrested for not doing so. Rather, he’s become a prominent voice for bringing food justice to low-income, minority neighborhoods like his own. He talked about his efforts to bring more gardens in neighborhoods like South Central—and to rebrand gardening as, among other things, “gangster”—at the TED Conference in Long Beach, Calif., earlier this month.

RBC’s Water Attitudes Study: We’re in denial over stormwater infrastructure (westcoastjan)

“Canadians continue to have a love affair with paved driveways,” Mr. Sandford said in a release. The study showed 47% of Canadians say their “ideal” house has a paved driveway or yard, and most of them stuck to it even knowing that a permeable surface would ease the pressure on sewers and pollution runoff. “There’s a serious trickle-down effect,” Mr. Sandford says, with excess water from urban sidewalks, roadways and parking lots combined with paved residential areas to overwhelm stormwater systems.

Gold & Silver

Click to read the Gold & Silver Digest: 3/15/13

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12 Comments

ao's picture
ao
Status: Diamond Member (Offline)
Joined: Feb 4 2009
Posts: 2220
Cyprus - a test run
Predators feed on the small and weak ... first.
 
 
I preaching to the choir hear but just in case someone didn't get the memo ...
 
This is why you don't want all of your wealth in the banking system and Wall Street.  Some emergency cash out of a bank or safe deposit box is a good idea.  Hard assets and tangibles are also wise.  There's a saying, "If you don't hold it, you don't own it".  The Jon Corzine/MF Global debacle in this country was a wake-up call of things to come.  There has been ongoing and growing government interest in retirement accounts whereby the US government (as was done in Argentina and elsewhere) will make it mandatory for you to invest in US Treasuries, "for your safety", of course.  This collectivist has increasingly had Congress's ear.   
 
 
They think they will be doing good.  Think they are using your tax money wisely now?  Think what will happen when they have your retirement money.  Unless you like Treasuries as an investment, you may want to start considering your options.  .
pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 1602
Wow, ao; that article on the

Wow, ao (And westcoastjan, above); that article on the banks in Cyprus hitting their savers with a 10% "levy" (read: "theft") sure makes you think twice about where you want to keep your hard-earned savings!

Thanks for sharing.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 2501
Hold it AO

"If you don't hold it, you don't own it"

I like that.

westcoastjan's picture
westcoastjan
Status: Gold Member (Offline)
Joined: Jun 4 2012
Posts: 466
yet one more warning flare

I concur with ao re Cyprus as this is a definite sign of things to come. Desperate times require desperate measures, and those desperate measures are usually aimed at people who can least defend against them.

The only bright light in this is that we have the advantage of seeing this as an advance warning, giving us some measure of time to make our own contingency plans. Cyprus is the new canary in mine, and we would do well to keep a close eye on how this plays out, lest ao's predictions come true.

Jan

Lnorris's picture
Lnorris
Status: Silver Member (Offline)
Joined: Mar 28 2011
Posts: 103
Mish's take on Cyprus

http://globaleconomicanalysis.blogspot.com/2013/03/contagion-begging-act...

Here's the link to Mike Shedlock's blog about what happened in Cyprus.  As zero Hedge said earlier today this is a game changer in a big way.  This story is getting more attention as the day passes.  An article written by a Boston Consulting company in 2011 lays out the percentage of money the IMF plans on take to restructure the debt from each country.  The US is listed at 26%.

I'll post it as soon as I find the link.

Lnorris's picture
Lnorris
Status: Silver Member (Offline)
Joined: Mar 28 2011
Posts: 103
Here's the link to the article on Zero Hedge

http://www.zerohedge.com/news/2013-03-16/everyone-shocked-what-just-happ...

Chris,

I'd would like to hear your take on what happened in Cyprus.  The goal posts just go moved in a major way.  I wonder if this falls into a black swan category and how it affects your thinking about the rest of the year.  Does this change anything for you in terms of your planning?

ao's picture
ao
Status: Diamond Member (Offline)
Joined: Feb 4 2009
Posts: 2220
Lnorris

Lnorris wrote:

http://globaleconomicanalysis.blogspot.com/2013/03/contagion-begging-act...

Here's the link to Mike Shedlock's blog about what happened in Cyprus.  As zero Hedge said earlier today this is a game changer in a big way.  This story is getting more attention as the day passes.  An article written by a Boston Consulting company in 2011 lays out the percentage of money the IMF plans on take to restructure the debt from each country.  The US is listed at 26%.

I'll post it as soon as I find the link.

Thanks for this information.  If this is true and if they plan on taking 26% from citizens, I have a hard time seeing how it would not spark widespread civil unrest that would tear this country apart.  I think the sheeple would rapidly metamorphose into roaring lions.  I wouldn't want to be the leaders who would attempt to implement this action.

thc0655's picture
thc0655
Status: Platinum Member (Offline)
Joined: Apr 27 2010
Posts: 626
The straw that broke the camel's back?

LNorris,

I would seem logical that the Cyprus debacle would have far reaching effects.  But I also thought the theft of $5 billion in customer money at MFGlobal would be the straw that broke the camel's back.  Yet, the world just seemed to yawn (except the customers, of course).  Let's see what happens with this.

pat the rat's picture
pat the rat
Status: Bronze Member (Offline)
Joined: Nov 1 2011
Posts: 29
cyprus

1} This outright theif,that simple !

2} The bankers must despert to save the bank's ?

3} Are the banks are going issue new shares for every euro ; can you spell devalution of shear price ?

4}} If  this is the future of banking I want as little to do with as I can ! ! !

                           pat the rat     

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 1602
Jim Sinclair adds another twist to Cyprus situation...

Kingworldnews has an interview with Jim Sinclair that may add another twist to what happened in Cyprus (edit: with potential impact on gold markets): 

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/3/16_Sinclair_-_One_Of_The_Most_Important_Events_In_History_%26_Gold.html

“The wire reports on the Cyprus situation are working overtime to try to make the case that 80% of the deposits belong to the people of Cyprus, and only 20% of the deposits belong to the Russians.  That’s absolutely false.  After 1985, when the ‘Robber Barrons’ of Russia took over the general economics of Russia, that was the transformation from the KGB to private business.  The primary place for exported Russian funds was Cyprus.  

Now, there is one leader in the world that would be very dangerous to challenge and that is Putin of Russia...."

“What’s just happened is the IMF has backed up, lauded, supported, and publicized, as if it were a victory, the taking of 10% of what really turns out to be 80% of Russian ‘black money.’  Russian ‘black money’ is KGB money, now in business.  The leader of Russia (Putin) was a former KGB official.  Who’s money do you think they have taken?  This is the biggest mistake the IMF could possibly have ever made.”

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 2501
Rat Trap.

Mr Putin will be very pleased with the confiscation of black money. He is on a mission to persuade the Oligarchs to bring their money home.

He talks of the leaders in the west as his partners. (One speculates that he might have had a word in a partners ear).

It serves Putin's ends well that external banks are seen to be rat traps.

robie robinson's picture
robie robinson
Status: Platinum Member (Offline)
Joined: Aug 25 2009
Posts: 650
since black

cyprus money is less safe now, it will move to a more safe place. maybe repatriate.

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