Daily Digest

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Daily Digest 12/19 - Lurid Subprime Scams Unveiled, The Hard Truth About CA Water

Thursday, December 19, 2013, 11:12 AM

Economy

Lurid Subprime Scams Unveiled in Long-Running Fraud Trial (westcoastjan)

Some background: The suit against Household International, a major home-loan purveyor that earned $75 billion from loan securitizations in 1999-2002 (and which was swallowed up by HSBC in 2002) originally began as a stock fraud case. Among other things, Household was disguising the toxicity and instability of its loans using a wide assortment of improper accounting schemes, which in an Enronesque touch were used to argue to the markets and to potential stockholders that Household was putting up record sales numbers.

Hard truths about California's water future (drbost)

The Brown administration's 34,000-page draft plan represents the most comprehensive effort in a generation to fit the scientific, engineering and political pieces together in order to allow Californians to adapt to climate change while sustaining both the environment and the economy. It is a product of more than seven years of talks, studies and dickering — none of which, by the way, has ended. Environmentalists, urban water contractors like the Metropolitan Water District, Central Valley contractors like the Kern County Water Agency and local delta agricultural and political interests are continuing to jockey for position, each wanting better guarantees of supply.

Is JP Morgan Ending Its Death Grip On The Gold Market? (Taki T.)

The important point is that this is a spectacular set up for higher prices to come. The price decline has lasted so long that the market seems conditioned for further sell-offs. More are concerned about the next dollar or so to the downside in silver instead of the next ten or twenty dollars to the upside. The fact is that we are structured to go up big and not go down big based upon what JPMorgan and the commercials have achieved this year and month; to say nothing about being below the realistic cost of production for many silver miners.

Radiation Effects In U.S. From Japan Nuke Accident (Ivo M.)

Once the diesel generators failed from the tsunami flooding, secondary emergency cooling pumps kicked-in; they were run by batteries. One day later, the batteries died for the secondary emergency pumps. The pumps stopped and the reactors began to overheat due to lack of water to cool the fuel rods. As workers struggled to supply power to the reactors coolant systems and restore power to their control rooms, the overheating reactors released hydrogen gas; an incredibly explosive gas. A number of hydrogen-air chemical explosions occurred, the first in Unit 1, on March 12 and the last in Unit 4, on March 15. These explosions tore the reactor buildings apart, and did severe damage to whatever cooling systems remained; making them all but useless.

Chinese investors 'buying' US green cards for $1m (westcoastjan)

While critics complain about foreigners "buying" their way into the US, the scheme's supporters told the BBC that the developers fund projects that create jobs in America.

The technology aiming to help refugees (westcoastjan)

It has created a division dedicated specifically to innovation and technology. Known simply as UNHCR Innovation, the division is headed by Olivier Delarue who enthusiastically describes his mandate as empowering refugees in new ways, including expanding opportunities to foster quality education and create genuine livelihood opportunities.

New census data: Poverty up in Lower Northeast, down in S. Philly (Thomas C.)

A combination of low-income people moving to the Lower Northeast from North Philadelphia, as well as impoverished immigrants coming to the area - mostly from Asia and Brazil - account for the precipitous rise in poverty in the Lower Northeast, said Matysik and others familiar with the area.

Gold Investors: Take the Red Pill (GE Christenson)

Congress, in their wisdom, will pass a budget that continues spending as usual, borrowing to cover the revenue shortfall, and increasing the official debt a $Trillion or so per year. The debt is still rated AAA because it will be rolled over well into the next century, and all is good. Individual equivalent: spend until credit cards are maxed out and then apply for more credit cards. What could go wrong?

Bitcoin Value Sinks After Chinese Exchange Move (Nervous Nelly)

According to Chinese news reports, the People’s Bank of China, the central bank, met Monday with more than 10 of the country’s biggest third-party payment processing companies, ordering them to stop all transactions involving digital currencies. Alibaba’s Alipay service, the country’s biggest processor of online transactions, was among the companies represented at the meeting, according to the reports.

Rickards: ‘Bernanke has pretty much destroyed the Fed’ (Herman J.)

“They [Fed] should not have bailed out insolvent banks in 2008; they should have closed the insolvent banks, stripped out the bad assets, re-IPO’d clean banks to help get the economy moving again, and asset prices should have been allowed to go lower so that they could bounce back in a classic “V” pattern. Instead, he papered over it, he trashed their balance sheet, and he’s got $4 trillion of assets – with very long durations. The Fed is probably insolvent on a mark-to-market valuation. They’re probably moving to actually having negative cash flow…Putting it all together, I think he’s [Bernanke] pretty much destroyed the institution.”

Record High in U.S. Say Big Government Greatest Threat (Dana T.)

The historical high choosing big business, 38%, came in 2002, after a series of corporate scandals rocked major corporations including Enron and Tyco. Also at that time, Americans may have been less willing to choose government given the rally in support for government institutions and officials after the 9/11 terrorist attacks.

Italy’s president fears violent insurrection in 2014 but offers no remedy (westcoastjan)

Mr Napolitano offers no answer. A former Stalinist who applauded the Soviet invasion of Hungary in 1956 (a youthful indiscretion), he has long since switched his ideological fervour to the EU project. He is by nature incapable of questioning the premises of monetary union, so don’t expect any useful insights from the Quirinale on how to break out of this impasse.

Typhoon Haiyan creates testing ground for crisis mappers (westcoastjan)

In the past month, 1,500 mappers made 4.2 million edits to help relief efforts in the Philippines — equivalent to about two years' worth of work by a cartographer, said John Crowley, a researcher with the Harvard Humanitarian Initiative who studies the intersection of crisis mappers and traditional relief.

How do you know if you've made it in life? (westcoastjan)

Another 68% of Chinese people admitted they were under pressure to make money and be successful, though just 56% expressed optimism when asked about their personal prospects for the year ahead.

HSBC drops some small-business accounts, forcing clients elsewhere (westcoastjan)

“We know it’s difficult to switch, though HSBC has certainly made it easy as they have propelled them to switch, but it’s sometimes perceived as a daunting task,” he said. “This is a chance to show there is a different alternative out there.” - See more at: http://www.timescolonist.com/news/hsbc-drops-some-small-business-account...

Gazprom Hopes to Sign Natural Gas Supply Contract with China in January (James B.)

According to Reuters, Gazprom plans to ship 38 billion cubic metres of natural gas a year to China from 2018 onwards, via a new pipeline that they are hoping to construct. Although Russian media have claimed that in their first copy of the 2014 investment programme, Gazprom has not included a budget for the constructing pipeline.

Study links BP oil spill to dolphin deaths (pinecarr)

The scientists caught, examined and released about 30 bottlenose dolphins from Barataria Bay in 2011, one year after the disaster. The area was one of the most heavily oiled areas following the April 2010 blowout of BP's deepwater well, that killed 11 workers and spewed millions of barrels of crude oil into the Gulf.

Gold & Silver

Click to read the PM Daily Market Commentary: 12/18/13

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."

4 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
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Quercus bicolor's picture
Quercus bicolor
Status: Silver Member (Online)
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Posts: 216
Re: Radiation Effects In U.S. From Japan Nuke Accident

On November 11, 2013 FOX NEWS reported that since June, researchers have seen the disease spread from as far as British Columbia, Canada, down through California and, within the past year, from Maine through New Jersey. The scientists tracking the disease find this simultaneous bi-coastal infection especially alarming. “There is no direct route to get from Providence to Seattle,” Gary Wessel, a molecular biologist at Brown University. However, when one considers the evaporation of radiation-contaminated water from the Pacific, being carried inland by weather systems, and the jet stream then carrying those weather systems to the east coast, the explanation becomes obvious.

I don't know about the rest of this article, but this explanation is pure garbage.   The evaporation of radiation contaminated water would leave behind the radioactive isotopes.  Only the water vapor would evaporate.  Further more, even if the mechanisim were possible, let's assume maybe a few inches of the contaminated upper 6000 inches or so of the Pacific would make it's way to the Atlantic, diluting the radiation by a factor of 1000.  It certainly calls into question the reliability of the other claims.  Note how the biologist is quoted immediately before the journalists unrealistic assertion, leading a reader to associate the assertion with the biologist.

VeganD's picture
VeganD
Status: Platinum Member (Offline)
Joined: Jul 18 2008
Posts: 572
radiation effects to the sailors on USS Reagan

http://www.stripes.com/news/lawsuit-expands-over-radiation-exposure-duri...

Class action suit. Of course those with highest exposure will get sick first. A shame if so many were harmed on a humanitarian mission.  Anyway, just a related article, wasn't sure where else to put it.

Regards

RogerA's picture
RogerA
Status: Bronze Member (Offline)
Joined: Jun 18 2009
Posts: 94
Demolishes his house and drops it in front of the bank

http://endoriot.blogspot.ie/2013/12/a-man-in-debt-demolished-his-house-a...

The land that the house was built on was not included in the mortgage so the family decided to destroy the house and give it to its new owner. The remains of the building were loaded on a big truck and moved to the central district office of the bank in the city of Teteven, where the contract for the mortgage was signed.

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