Daily Digest

Daily Digest 10/20 - China Takes Symbolic Step To Reserve Status, Reality/Fantasy Gap Grows, Why Clean Water May Be Running Out

Thursday, October 20, 2011, 9:44 AM
  • Why Occupy Wall Street Needs to Shift Its Focus on the Federal Reserve
  • Equity and Credit Markets Telling Two Different Stories
  • Enter the Dragon: China Takes a Symbolic Step Toward Reserve Status
  • Euro Leaders’ Crash Crisis Campaign Bogs Down
  • Another Quarter, Another Blatant Window Dressing By The Primary Dealer Banks To Make Their Balance Sheets Seem Strong
  • Morning Update/ Market Thread 10/17 - Reality & Fantasy Gap Grows Wider Edition…
  • Occupy Wall Street: "Enforce the Laws for the 99%"
  • CHARTS: Here's What The Wall Street Protesters Are So Angry About...
  • Solar Aircrafts Soon to be in the Sky
  • This is no Normal Recession: Are we Prepared for $100 Oil
  • Why the World May Be Running Out of Clean Water
  • Commuter Cyclist Marks 10 Years Car-Free

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Economy

Why Occupy Wall Street Needs to Shift Its Focus on the Federal Reserve (adam)

As revealed in The Sanders Report, which should probably be mandatory reading for the Occupy Wall Street movement, specific board members directly profited from removing restrictions or giving certain banks access to cheaper Fed loans while simultaneously holding stock in that company. Although such actions would've normally been restricted by the Fed's own internal regulations to prohibit such obvious conflicts of interest, instead waivers were given to certain individuals allowing them to maintain their financial relationships with companies like the most-beloved Goldman Sachs.

Equity and Credit Markets Telling Two Different Stories (adam)

While the markets advance over the last two weeks has been perceived by many to give the all clear in terms of European financial risk or a US recession ahead, I wouldn’t be so sure. What should give investors pause is that leading economic indicators often act coincidentally with the stock market, meaning they tend to move in concert as both discount future economic trends. Thus, when they do not move in harmony it typically means one of the two is about to play catch up with the other.

Enter the Dragon: China Takes a Symbolic Step Toward Reserve Status (adam)

Gold, as with most other commodities, is commonly priced around the world in US dollars since it currently acts as the world reserve currency—a relic of the Bretton Woods System established after World War II to restore order to the global financial system under America's newly recognized economic and financial strength. In order for other nations to agree to this US-centric based system of finance and global trade, however, there was a stipulation made to enforce responsibility on the US to maintain the dollar's value by allowing other nations to freely exchange their dollar holdings for a fixed amount of gold. That is, the US dollar was directly convertible into gold.

Euro Leaders’ Crash Crisis Campaign Bogs Down (pinecarr)

While Group of 20 finance ministers and central bankers pressed European Union leaders to set out a strategy by the end of the week, divisions flared over an emerging plan to avoid a Greek default, bolster banks and curb contagion.

“We’re really in a bind here,” Carl Weinberg, founder and chief economist at High Frequency Economics, said in an interview with Betty Liu on Bloomberg Television’s “In the Loop.” “We have a lot of egos, a lot of national interests, a lot of political considerations, and that’s just hampering us from getting to a solution.”

Another Quarter, Another Blatant Window Dressing By The Primary Dealer Banks To Make Their Balance Sheets Seem Strong (pinecarr)

The quote-unquote shocking chart below is one we have demonstrated on numerous occasions in the past: it shows total primary dealer assets on a weekly basis as reported publicly by the New York Fed. We have made it clear time and again, that this chart demonstrates nothing short of the end of quarter window dressing, when PDs convert their asset holdings into cash to make their Tier 1 Capital much more robust than it truly is. After all, none other than JPM and Citi were praising just how prepared for Basel III they are with their "sterling" capitalization ratios... which were only sterling courtesy of precisely the highlighted window dressing which occurs each and every quarter. We expect nothing less from Bank of America and Morgan Stanley when they report their own numbers in the coming days. We also expect the regulators to do absolutely nothing to prevent this blatant abuse of fiduciary duty which has no other purpose than to hide the true sad state of America's banking system.

Morning Update/ Market Thread 10/17 - Reality & Fantasy Gap Grows Wider Edition… (pinecarr)

Today I want to talk about what’s “real” and what’s not. In “Federal Reserve” parlance, the term “real” means that they have measured something in dollars but then corrected for inflation to make that statistic “real.”

Occupy Wall Street: "Enforce the Laws for the 99%" (June C.)

Preface: Top economists and financial experts agree that our economy will never recover unless Wall Street fraud is prosecuted.

But the government has more or less made it official policy not to prosecute fraud, and instead to do everything necessary to cover up for Wall Street.

CHARTS: Here's What The Wall Street Protesters Are So Angry About... (Phil H.)

The problem in a nutshell is this: Inequality in this country has hit a level that has been seen only once in the nation's history, and unemployment has reached a level that has been seen only once since the Great Depression. And, at the same time, corporate profits are at a record high.

In other words, in the never-ending tug-of-war between "labor" and "capital," there has rarely—if ever—been a time when "capital" was so clearly winning.

Solar Aircrafts Soon to be in the Sky (James S.)

Solar panels across the top of its body, likely backed up by a lithium-ion battery system, will supply enough electricity to drive it forward and into the air. In this way, the design achieves just the right balance of static lift (like a blimp) and aerodynamic lift (like a plane).

This is no Normal Recession: Are we Prepared for $100 Oil (James S.)

When the UK Prime Minister calls the current economic crisis "no normal recession" and The Governor of The bank of England has said "this financial crisis could be the worst the UK has ever seen" it should be clear to all that we are living through exceptional times.

Why the World May Be Running Out of Clean Water (Jeff B.)

Volume 7 of the Pacific Institute's regular report on global water usage, The World's Water, comes out today, just in time to address the squeeze of droughts, the increasingly apparent impact of climate change and the threats facing our relatively scarce supplies of freshwater. The sweeping report is a reminder that clean water is vital to life — as Gleick points out, more than 2 million people die each year from preventable water-related diseases — and that on the whole, we're not doing a very good job of husbanding that resource. There's even a risk here that parts of the U.S., especially the arid West, may have passed "peak water" — the point at which it becomes essentially impossible to increase supply.

Commuter Cyclist Marks 10 Years Car-Free (joemanc)

Annually, Bonan estimates he bikes about 6,500 to 7,000 miles. Neither rain, nor snow, nor blazing heat keeps him off the bike seat. While biking, he says he learns about local history, gets in touch with small communities and takes time to smell the roadside roses. He also burns more calories during a week than most people do with a lifetime of gym memberships.

Article suggestions for the Daily Digest can be sent to [email protected]. 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."

8 Comments

saxplayer00o1's picture
saxplayer00o1
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rjs's picture
rjs
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t​hose who bought homes with clouded titles dont own them

re:  the Bevilacqua decision...

Massachusetts Supreme Court Blows Whistle on How the Banks Broke the Housing Market - It represents the nightmare scenario we all expected to come to pass. The highest court in Massachusetts ruled that a homeowner who bought a foreclosure that hadn’t been properly conducted by the foreclosing bank in 2006 didn’t have legal ownership of the property. The decision by the Supreme Judicial Court casts a cloud over the legal ownership of any properties in Massachusetts where banks didn’t properly convey title when foreclosing. The problem has gained attention nationwide because of banks’ use of “robo-signing” and other dubious practices that may have broken chains of title on foreclosures. Think about that. Banks that failed to convey title during foreclosure have clouded the title of any property for the foreseeable future, meaning that whoever buys up the foreclosed property may not be the legal owner. And extrapolating that out, all the homes across the country where the banks failed to convey title properly through securitization have clouded the titles there. That means tens of millions of homes pretty much have no legal ownership chain.
 
 

 here's the legal discussion of the ruling:

Nemo Dat Trumps Bona Fide Purchaser - The Massachusetts Supreme Judicial Court just handed down a second major mortgage foreclosure ruling, Bevilacqua v. Rodriguez.  The case was an Ibanez follow-up dealing with the rights of a purchaser at an invalid foreclosure sale. I thought this was a no brainer case and said so in an amicus brief co-authored with some of the Credit Slips crew. As the trial court noted, the foreclosure sale purchaser has to lose otherwise I could actually sell you the Brooklyn Bridge or some other property I don't own. What was cool about this case from an academic perspective was that it pitted two heavyweight, Latin-inscribed principles of commercial law against each other:  the nemo dat quod non habet principle (you can't give what you don't have) and the bona fide purchaser principle (one who takes in good faith for value and without notice of defect will get legal protection against claims). While these are both venerable principles of commercial law, there should have been no question that nemo dat prevails. It is arguably the foundational principle of commercial law:  the most one party can transfer to another are the rights it has.  

 

alcatwize's picture
alcatwize
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Anytime u get the chance u should listen to Kyle Bass

Here is a link to a video interview.  Check it out if u can.  He really knows how to cut through the BS.

 

http://www.cnbc.com/id/44758280/Troika_in_Chicken_Game_With_Greece_Kyle_Bass 

Doug's picture
Doug
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Posts: 3200
Bass
alcatwize wrote:

Here is a link to a video interview.  Check it out if u can.  He really knows how to cut through the BS.

 

http://www.cnbc.com/id/44758280/Troika_in_Chicken_Game_With_Greece_Kyle_Bass 

After reading Boomerang, Bass has become my new favorite "smartest guy in the room."   I recently saw a video of him and two other people at some kind of conference about a year ago.  Very impressive indeed.

Doug

Damnthematrix's picture
Damnthematrix
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http://www.businessinsider.co

http://www.businessinsider.com/moodys-just-made-16-more-huge-downgrades-in-spain-2011-10

 

Moody's Just Made 16 More Huge Downgrades In Spain

That included demoting one region ” Castilla-La Mancha ” by five notches, from A3 to Ba2. It also remains on downgrade review.

This newest report confirms that the gravity of the debt crisis is deepening in Spain, one of the countries most vulnerable to banking contagion.

Here's the full release from Moody's.

saxplayer00o1's picture
saxplayer00o1
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guardia's picture
guardia
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Posts: 592
Dollar/Yen down -0.85% @ 76.15 ‎

Ouch

http://www.stockmarketwire.com/article/4243850/UPDATE-Dollar-Yen-down-0-...

(shortest article ever)

SagerXX's picture
SagerXX
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Posts: 2252
German Newspaper Prices Itself In Deutschemarks

(cross-posted from subscriber side)

Sure, it's only a pointed editorial barb, and the DM price is shown in addition to the price in Euros... As a sign of general dissatisfaction with the endless haggling by EZ leaders on how to resolve the crisis, it seems to me to be representative of the fact that more and more Germans are thinking they'd like to have their beloved D-Mark back. Not exactly bullish for the Euro...

http://www.zerohedge.com/news/its-baaack-ft-deutschland-pronounces-deuts...

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