Daily Digest

Daily Digest 10/3 - China's Syndrome, Global Unemployment To Trigger Social Unrest, 'River Of Oil' In Gulf

Sunday, October 3, 2010, 9:42 AM
  • Global unemployment to trigger further social unrest, UN agency forecasts
  • Ireland nationalises second-biggest bank Allied Irish
  • Determined To Be Difficult
  • China: Proudly Demolishing Buildings Before Completed In Pursuit Of The Glorious Housing Bubble Perpetual Engine
  • China's Syndrome
  • Underwater 'River' of Oil Confirmed in Gulf
  • Coral Reefs Are Trying to Tell Us Something: We Must Break Our Addiction to Fossil Fuels

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Economy

Global unemployment to trigger further social unrest, UN agency forecasts (damnthematrix)

This is two years later than its earlier estimate that the labour market would rebound to pre-crisis levels by 2013. About 22 million new jobs are needed – 14 million in rich countries and 8 million in developing nations.

The United Nations work agency today warned of a long "labour market recession" and noted that social unrest related to the crisis had already been reported in at least 25 countries, including some recovering emerging economies.

Ireland nationalises second-biggest bank Allied Irish (damnthematrix)

Irish finance minister Brian Lenihan described the new costs as "horrendous" and said his plan to find a further €3bn in a budget due in December would now have to be "upped". It will be the country's fourth budget in just over two years.

Determined To Be Difficult (Andrew W.)

In the real world, Commonwealth Bank (CBA) executives are currently traveling internationally (including to, presumably, America) to do more than dispense with a fictitious advertising agency’s foolish ideas. They have, in the bank’s own words, gone “overseas to meet with some of the Group’s offshore shareholders and other investors interested in Australia and the Australian banking sector.”



Though the goals of the trip are no doubt myriad, the press release heralding their departure came complete with 19 pages of argument for why there is no Australian housing bubble. It included directly refuted quotes from such notable housing bears as Morgan Stanley’s Gerard Minack and GMO’s Jeremy Grantham. It appears CBA management set sail on a bubble-busting roadshow.

China: Proudly Demolishing Buildings Before Completed In Pursuit Of The Glorious Housing Bubble Perpetual Engine (Ilene)

As one of the most architectural productive country, China aggregates 2 billion m2 of new building area every year, consuming about 40% of the world’s concrete and steel. However, on the flip side of the new building fever, there lie the rubbles and remains of other “older” buildings: people tear down four-star hotels to build five-star ones and bulldoze newly developed construction sites before they are even finished. Lots of young strong buildings are down, fulfilling their unnatural destiny in the roaring noise of blasting.

China's Syndrome (Ilene)

What China is NOT doing is developing a consumer-based economy that can buy its own products (I mean, products that are largely controlled by Western companies, but manufactured in China, so these are in many cases not "Chinese" products at all). Right now, consumption in China accounts for only 30% of GDP, which is the lowest in the world. Moreover, this proportion is getting worse, not better. This is partly because of government policies re exceedingly low interest rates, which essentially systematically transfers wealth from the vast lower and middle classes into the upper class, and so pulls the rug out from under domestic consumption.

Energy

Obama Touts Clean Energy in Weekly Speech (Adam T.)

U.S. President Barack Obama on Saturday touted his administration's energy policy agenda, predicting that his clean energy programs will create "hundreds of thousands" of new American jobs by 2012.

Underwater 'River' of Oil Confirmed in Gulf (damnthematrix)

Apparently, the cold water and high pressure that exist at these depths are preventing it from coming to the surface. Dispersants may be playing a role as well.

Environment

Coral Reefs Are Trying to Tell Us Something: We Must Break Our Addiction to Fossil Fuels (SolidSwede)

Coral is extremely sensitive to heat, and when temperatures spike for a few days it can cause massive die-offs. This process has been dubbed "coral bleaching" because these once vibrant, colorful reefs are transformed into stark white graveyards. Scientists point to coral as a canary in the coalmine for climate change -- and their reaction to increased water temperatures isn't the only indication that carbon emissions are reaching dangerous levels. Last year I narrated a short documentary from the Natural Resources Defense Council called Acid Test that explored another one of the seas' warning signs: ocean acidification.


Here's What You Need To Know About The Politics Behind Rare Earth Metals (Adam T.)

Earlier this week, the U.S. Senate held hearings on a bill to jumpstart domestic production of “rare earth” minerals, in order to break China’s near-monopoly on these little known but essential raw materials.

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."

7 Comments

rjs's picture
rjs
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 445
Re: Daily Digest 10/3 - China's Syndrome, Global ...

4ClosureFraud Posts Lender Processing Services Mortgage Document Fabrication Price Sheet -  Yves Smith - A bombshell has dropped in mortgage land. We’ve said for some time that document fabrication is widespread in foreclosures. The reason is that the note, which is the borrower IOU, is the critical instrument to establishing the right to foreclose in 45 states (in those states, the mortgage, which is the lien on the property, is a mere “accessory” to the note). The pooling and servicing agreement, which governs the creation of mortgage backed securities, called for the note to be endorsed (wet ink signatures) through the full chain of title. That means that the originator had to sign the note over to an intermediary party (there were usually at least two), who’d then have to endorse it over to the next intermediary party, and the final intermediary would have to endorse it over to the trustee on behalf of a specified trust (the entity that holds all the notes). This had to be done by closing; there were limited exceptions up to 90 days out; after that, no tickie, no laundry. Evidence is mounting that for cost reasons, starting in the 2004-2005 time frame, originators like Countrywide simply quit conveying the note. We are told this practice was widespread, probably endemic. The notes are apparently are still in originator warehouses. That means the trust does not have them (the legalese is it is not the real party of interest), therefore it is not in a position to foreclose on behalf of the RMBS investors.

Homes in Florida Seized Without Notice of Foreclosure: Suspicously Large Number of “The Dog Ate My Summons” Filings - Yves Smith - More revelations from one of the epicenters of the housing implosion. 4ClosureFraud has published an eyepoppingly long list of affidavits of lost summons in foreclosure cases.  This is a teeny extract from their sample, so readers can see what their roster looks like:I spoke to the individuals who compiled this sample; the roster on the 4ClosureFraud site is from DuVal county only. They’ve pulled records from across the state and find similar high volumes in every county. They have refined their queries to exclude judicial notices that are not germane and are up to nearly 9000 questionable notices of lost summons, nearly all from 2010 (in three counties, they have gone into 2009 records). They are in the process of drilling back in time to come up with a more definitive figure. Both judicial and non-judicial states require that the person being foreclosed upon receive some sort of notification that they are at risk of losing their home as a result of serious delinquency on their mortgage borrowings. In judicial states such as Florida, the first step is the service of process

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Daily Digest 10/3 - China's Syndrome, Global ...
rjs wrote:

4ClosureFraud Posts Lender Processing Services Mortgage Document Fabrication Price Sheet -  Yves Smith - A bombshell has dropped in mortgage land. We’ve said for some time that document fabrication is widespread in foreclosures. The reason is that the note, which is the borrower IOU, is the critical instrument to establishing the right to foreclose in 45 states (in those states, the mortgage, which is the lien on the property, is a mere “accessory” to the note). The pooling and servicing agreement, which governs the creation of mortgage backed securities, called for the note to be endorsed (wet ink signatures) through the full chain of title. That means that the originator had to sign the note over to an intermediary party (there were usually at least two), who’d then have to endorse it over to the next intermediary party, and the final intermediary would have to endorse it over to the trustee on behalf of a specified trust (the entity that holds all the notes). This had to be done by closing; there were limited exceptions up to 90 days out; after that, no tickie, no laundry. Evidence is mounting that for cost reasons, starting in the 2004-2005 time frame, originators like Countrywide simply quit conveying the note. We are told this practice was widespread, probably endemic. The notes are apparently are still in originator warehouses. That means the trust does not have them (the legalese is it is not the real party of interest), therefore it is not in a position to foreclose on behalf of the RMBS investors.

Homes in Florida Seized Without Notice of Foreclosure: Suspicously Large Number of “The Dog Ate My Summons” Filings - Yves Smith - More revelations from one of the epicenters of the housing implosion. 4ClosureFraud has published an eyepoppingly long list of affidavits of lost summons in foreclosure cases.  This is a teeny extract from their sample, so readers can see what their roster looks like:I spoke to the individuals who compiled this sample; the roster on the 4ClosureFraud site is from DuVal county only. They’ve pulled records from across the state and find similar high volumes in every county. They have refined their queries to exclude judicial notices that are not germane and are up to nearly 9000 questionable notices of lost summons, nearly all from 2010 (in three counties, they have gone into 2009 records). They are in the process of drilling back in time to come up with a more definitive figure. Both judicial and non-judicial states require that the person being foreclosed upon receive some sort of notification that they are at risk of losing their home as a result of serious delinquency on their mortgage borrowings. In judicial states such as Florida, the first step is the service of process

Amazing. Absolutely amazing.

mainecooncat's picture
mainecooncat
Status: Gold Member (Offline)
Joined: Sep 7 2008
Posts: 488
Re: Daily Digest 10/3 - China's Syndrome, Global ...

Regarding the foreclosure issue. I think Uncle Sam has probably been onto this for some time, and it's just now breaking into the mainstream as a news story.

I know people in my general area in the building/real estate/mortgage industry who for months now have been whispering about (to paraphrase): "significant numbers of inexplicably not-foreclosed-upon homes/properties."

Of course, this is anecdotal, so who knows?

But how much you wanna bet the gov owns all these purgatorial properties regardless of their real numbers?

VeganDB12's picture
VeganDB12
Status: Platinum Member (Offline)
Joined: Jul 18 2008
Posts: 731
Re: Daily Digest 10/3 - China's Syndrome, Global ...

rjs-wow

What bothers me about this mortgage fraud issue is that it seems to  allow the banks to keep these losses off the books even longer. Many foreclosures have been essentially halted in the U.S. therefore the banks do not have to recognize the losses and can hold onto these properties for a long long time. Keeping the owners living there for a long long time. The only agent that seems to have the paperwork to foreclose is the loan originator (retail mortgage brokers) some of whom are closed.

How does it hurt the banks if they cannot foreclose on properties they cannot sell?

 

idoctor's picture
idoctor
Status: Diamond Member (Offline)
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Posts: 1731
Re: Daily Digest 10/3 - China's Syndrome, Global ...

Rare Earth Metals:

Here's What You Need To Know About The Politics Behind Rare Earth Metals

Read more: http://www.businessinsider.com/heres-what-you-need-to-know-about-the-politics-behind-rare-earth-metals-2010-10#ixzz11LNqDH3r

idoctor's picture
idoctor
Status: Diamond Member (Offline)
Joined: Oct 4 2008
Posts: 1731
Re: Daily Digest 10/3 - China's Syndrome, Global ...

britinbe's picture
britinbe
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Joined: Dec 28 2008
Posts: 381

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