Daily Digest

Daily Digest 10/8 - High Frequency Signing, Gold In The News, Hungarian Toxic Sludge

Friday, October 8, 2010, 9:47 AM
  • Is HR3808 The Equivalent Of TARP 2 And Obama's "Get Out Of Bail" Gift Card For The High Frequency Signing Scandal?
  • Through the Roof or Smashed into a Thousand Pieces?
  • Art Cashin On High-Frequency Signing, The Death Of Securitization, And Fleets Of Fed Helicopters
  • Massive Physical Gold Buyers Just Below These Levels
  • Bill Fleckenstein: Here's Why Gold Could Shoot To $8250
  • Electric Cars: Highly Charged 
  • Hungarian Toxic Sludge Reaches Danube River
  • A Flood Of Toxic Sludge

Get started building resilience into your life with our 'What Should I Do?' guide

Economy

Is HR3808 The Equivalent Of TARP 2 And Obama's "Get Out Of Bail" Gift Card For The High Frequency Signing Scandal? (Brian C.)

Now that the High Frequency Signing (HFS, not to be confused with HFT) scandal is mainstream, and virtually every single foreclosure in the US in the past several years is under question, with the impact on mortgage servicers (who just happen to be the TBTF banks) could be just as dire as the fallout from the credit crunch, it appears that the get out of jail card for the banking syndicate has once again materialized, this time in the form of bill HR3808: Interstate Recognition of Notarizations Act of 2009, sponsored by Republican representative Robert Aderholt. The bill, it turns out, has passed both congress and senate, and is now quietly awaiting for Obama's signature to be enacted into law.

Through the Roof or Smashed into a Thousand Pieces? (Ilene)

Willy Wonka understood stock market physics, there had to be enough power to get through that overhead resistance or it was going to be a very painful test of the top (like the one we had in August). Since our last dip, we’ve come back for another try but the volume has been substantially lower than it was in Aug, leading us to believe it is only TradeBots, and not Oompa Loompas, who are buying this market. Can TradeBots alone give us enough "thrust" to break through this time? It shouldn’t be THAT hard, in April we had highs of Dow 11,258 (5.6% higher than 10,680), S&P 1,219 (7.5% higher), Nas 2,535 (9.2%), NYSE 7,743 (7.2%) and Russell 745 (11.1%) so it’s not like we’re asking for a lot with our little breakouts, are we?

Art Cashin On High-Frequency Signing, The Death Of Securitization, And Fleets Of Fed Helicopters (tomadkins)

After the drop in gold and silver today, King World News contacts out of London have confirmed massive physical purchase orders on gold between $1,308 and $1,317. One source who wishes to remain anonymous stated, “It will take a massive amount of physical gold to take out those levels. You can have shenanigans in the paper market, but there is an underlying physical market here in London and that is where the floor appears to be for now.”

Massive Physical Gold Buyers Just Below These Levels (tomadkins)

After the drop in gold and silver today, King World News contacts out of London have confirmed massive physical purchase orders on gold between $1,308 and $1,317. One source who wishes to remain anonymous stated, “It will take a massive amount of physical gold to take out those levels. You can have shenanigans in the paper market, but there is an underlying physical market here in London and that is where the floor appears to be for now.”

Bill Fleckenstein: Here's Why Gold Could Shoot To $8250 (tomadkins)

Paul Brodsky and Lee Quaintance, of QB Partners, have given the question a fair amount of thought and have written a number of papers that I have found quite useful. What I like about their approach is that it is disciplined and not emotional, and it has led them to calculate what they call the "shadow gold price."

Energy

Electric Cars: Highly Charged (jdargis)

And what of electric cars’ environmental credentials? Electric cars are being hugely subsidised by taxpayers—£5,000 ($7,940) in Britain and up to $7,500 in America—on the ground that they are zero-emission vehicles. Makers of electric cars claim that this is an efficient way to reduce greenhouse-gas emissions. Road transport accounts for a tenth of such emissions worldwide; the sorts of biofuels currently in use are not much greener than petrol; and next-generation biofuels are proving slow to come to the market.

Environment

Hungarian Toxic Sludge Reaches Danube River (pinecarr)

Hungary's toxic sludge spill, which has killed four people, reached the Danube river, threatening to contaminate the waterway's entire ecosystem, officials have said.

A Flood Of Toxic Sludge (VeganD)

On Monday, October 4th, a large reservoir filled with toxic red sludge in western Hungary ruptured, releasing approximately 700,000 cubic meters (185 million gallons) of stinking caustic mud, which killed many animals, at least four people, and injured over 120 - many with chemical burns. The 12-foot-high flood of sludge inundated several towns, sweeping cars off the road as it flowed into the nearby Marcal River.

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."

14 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4061
Re: Daily Digest 10/8 - High Frequency Signing, Gold In The ...

"Former Federal Reserve Chairman Alan Greenspan said the U.S. fiscal deficit is “scary” and the federal government needs to cut spending on entitlements.

“We’re involved in a dangerous game,” Greenspan said yesterday at a foreign-exchange conference in New York sponsored by Bloomberg LP, the parent of Bloomberg News. “We’re increasing the debt held by the public at a pace that is closing” the gap between our debt and “any measure of borrowing capacity,” Greenspan said. “That cushion is growing very narrow.”"

"Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., said the September employment report signals that the Federal Reserve will provide more quantitative easing.

The central bank will likely buy $100 billion in government securities a month to keep borrowing costs down, Gross said in a radio interview today on “Bloomberg Surveillance” with Tom Keene. The Fed may buy $1.2 trillion in Treasuries, he said. "

"The euro erased gains against the dollar in early New York trade on Friday after Eurogroup Chairman Jean-Claude Juncker said he was not happy with the euro zone single currency reaching $1.4000."

 

  • Other news and headlines:

Copper Rises After U.S. Employment Report on Speculation About Fed Actions

Midnight grocery runs capture economic desperation

NYC Bonds Draw 'Strong Demand' Abroad as Yield Exceeds Spain's

China to be second richest country by 2015: Study

Iceland Banks May Forgive $2 Billion After Protests

Japan's 20-Year Bonds Drop a 2nd Day on U.S. Inflation Concern

S.&P. Says Cost to Care for Elderly Will Spiral

Inflation to Make All Americans Billionaires by 2020 (National Inflation Association)

Calif. proceeds with building sale despite warning

Experts see more trouble for real estate

Fresno-area's vacant buildings hurt developers

Employers in U.S. Cut More Jobs Than Forecast in September

Newark City Council floats 16 percent property tax hike

$30 million hole possible in Milwaukee County budget, report says

IMF forecasts 2011 recession (Portugal)

Portuguese to Protest Plan to Use Toll Booths to Trim Deficit

Spain credit crunch threatens strict austerity programme.

Mantega's `Currency War' Backfires as Real Volatility Jumps: Brazil Credit

Texas Governor Facing Up to $17 Billion Budget Battle

World Risks Depression if Currency Tensions Escalate: Mobius

Report: OC faces $41.2 billion unfunded pension liability (Orange County)

Poverty Moves into America’s Suburbs

Republic of Ireland's debt to quadruple as nation gets older

BofA Halts Foreclosures

SEC Failure to Regulate MBS Resulted in 'Interconnected Ponzi Scheme With Various Types of Concurrent Fraud'  (Mish)

Poet's picture
Poet
Status: Diamond Member (Offline)
Joined: Jan 21 2009
Posts: 1891
Taxpayer Subsidy of Car Industry Again With Greenwashing

 

Re: Electric Cars: Highly Charged

"Makers of electric cars claim that this is an efficient way to reduce greenhouse-gas emissions."

If you are concerned about your car's carbon footprint, you can go to Carbonfund.org and purchase enough carbon offsets to take care of a year's worth of driving for about $20 to $30. Yes, that's right.

So why exactly is the government giving $7,500 in tax support for EACH "zero-emission" vehicle sold, when all it had to do was levy an extra $25 per year on each car on the road today? Politicians could be saving the world at little cost, rather than putting our nation further into debt.

Auto maker profits and labor union jobs, my friends.

Poet

 

printfaster's picture
printfaster
Status: Bronze Member (Offline)
Joined: Sep 30 2009
Posts: 52
Iceland Banks May Forgive $2 Billion After Protests

On

Iceland Banks May Forgive $2 Billion After Protests

This points the way for the US government extricate itself from the mess that it is in.  Instead of wasting trillions on TARP to keep the debt bubble afloat, the answer is to extinguish the debt bubble by extinguising debt.

The US needs to forgive homeowner debt to the level of $100,000 per mortgage, and simply forgive it.  IT would end the foreclosure circus, and the banks who keep coming back for more handouts as the debt on unpaid loans keep increasing.

Call it a jubilee, or whatever, the knot needs to be cut, instead of fiddled with.

 

Poet's picture
Poet
Status: Diamond Member (Offline)
Joined: Jan 21 2009
Posts: 1891
Re: Iceland Banks May Forgive $2 Billion After Protests
printfaster wrote:

On

Iceland Banks May Forgive $2 Billion After Protests

This points the way for the US government extricate itself from the mess that it is in.  Instead of wasting trillions on TARP to keep the debt bubble afloat, the answer is to extinguish the debt bubble by extinguising debt.

The US needs to forgive homeowner debt to the level of $100,000 per mortgage, and simply forgive it.  IT would end the foreclosure circus, and the banks who keep coming back for more handouts as the debt on unpaid loans keep increasing.

Call it a jubilee, or whatever, the knot needs to be cut, instead of fiddled with.

I think I and a great many millions of people would be opposed to this idea. Why should we reward people who can't pay their mortgages with $100,000 debt forgiveness, when there are those of us who couldn't afford houses during the buble and didn't try to overreach ourselves by stretching for mortgages we couldn't afford. Are we rewarding bad behavior here? I would feel shafted - just as Americans have felt shafted by TARP and the big bank bail-outs.

Poet

alcatwize's picture
alcatwize
Status: Bronze Member (Offline)
Joined: Dec 24 2008
Posts: 78
Re: Iceland Banks May Forgive $2 Billion After Protests

Sounds like someone has a huge mortgage!!  U would like that wouldn't u.  Now please stop with the absurdities.

 

 

Doug's picture
Doug
Status: Diamond Member (Offline)
Joined: Oct 1 2008
Posts: 3125
Re: Iceland Banks May Forgive $2 Billion After Protests
Poet wrote:
printfaster wrote:

On

Iceland Banks May Forgive $2 Billion After Protests

This points the way for the US government extricate itself from the mess that it is in.  Instead of wasting trillions on TARP to keep the debt bubble afloat, the answer is to extinguish the debt bubble by extinguising debt.

The US needs to forgive homeowner debt to the level of $100,000 per mortgage, and simply forgive it.  IT would end the foreclosure circus, and the banks who keep coming back for more handouts as the debt on unpaid loans keep increasing.

Call it a jubilee, or whatever, the knot needs to be cut, instead of fiddled with.

I think I and a great many millions of people would be opposed to this idea. Why should we reward people who can't pay their mortgages with $100,000 debt forgiveness, when there are those of us who couldn't afford houses during the buble and didn't try to overreach ourselves by stretching for mortgages we couldn't afford. Are we rewarding bad behavior here? I would feel shafted - just as Americans have felt shafted by TARP and the big bank bail-outs.

Poet

Perhaps they could just give a grant of $100k to everyone, to be used to pay down debt first.  If any is left over, go stimulate the economy, or buy gold, or bury it in a coffee can, or get it all in $1 bills and roll around naked in it (uh, don't buy anything from me with that money).  Of course, it would all be freshly printed money, and probably inflationary, but what the hey.  At least we can have a party before it all goes to h*ll.

DougCool

Ruhh's picture
Ruhh
Status: Gold Member (Offline)
Joined: Nov 12 2008
Posts: 259
Re: Daily Digest 10/8 - High Frequency Signing, Gold In The ...

Vietnamese bank tempts savers with German beer

http://www.ottawacitizen.com/business/story.html?id=3642204

 

saving has never tasted better Laughing

rjs's picture
rjs
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 445
Re: Daily Digest 10/8 - High Frequency Signing, Gold In The ...

Exclusive Bombshell of Foreclosure Fraud – Full Deposition of TAMMIE LOU KAPUSTA Law Office of David J Stern - 4ClosureFraud.

DC Waking Up to Escalating Foreclosure Train Wreck: Grayson Calls for FSOC to Examine Foreclosure Fraud as Systemic Risk - Yves Smith - Wow, someone in DC has connected the dots: that the banks’ failure to adhere to contractual and legal requirements in the residential mortgage backed securities market are so extensive and widespread as to constitute systemic risk. Alan Grayson, Congressman from Ground Zero of the foreclosure mess, is calling on the Financial Stability Oversight Council to investigate the escalating foreclosure fraud crisis.  Although the data points we have seen so far could be considered anecdotal, we have evidence that strongly suggests that major RMBS originators, the investment bank packagers, and the bank trustees failed to convey the notes (the borrower IOU, which is critical to having the legal standing to foreclose in 45 states) to the RMBS trusts starting in 2005, perhaps even earlier. And comments from industry insiders suggest this problem is pervasive. That puts a cloud over the entire US RMBS market, the biggest asset class in the world. This paper was sold as secured; the ability to offset the cost of borrower defaults by seizing and selling his house is critical to the value of the instruments. And if no assets were conveyed to a particular trust by closing, an even uglier possibility exists: under New York law, which was elected by RMBS as governing law for the trust, it would be considered to be “unfunded”, which means it does not exist.

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Re: Iceland Banks May Forgive $2 Billion After Protests
alcatwize wrote:

Sounds like someone has a huge mortgage!!  U would like that wouldn't u.  Now please stop with the absurdities.

Absurdities..??  Can you please explain to us how YOU propose all these debts to be repaid..?

The debts will NEVER BE REPAID!   NEVER EVER!

Get over it......  the world is about to change REALLY big time.

Mike

Matt Holbert's picture
Matt Holbert
Status: Bronze Member (Offline)
Joined: Oct 3 2008
Posts: 95
Re: Taxpayer Subsidy of Car Industry Again With Greenwashing

After spending a day or two researching carbon offsets, I determined that it was a feel good plan for those who like to pretend that they live with a small footprint and an employment scheme for a few thousand people.  Google "Carbon Offset Indulgences"  If it sounds too good to be true, it probably is too good to be true.

Matt

http://UniverseClub.org

ljhaines's picture
ljhaines
Status: Bronze Member (Offline)
Joined: Apr 23 2009
Posts: 35
Re: Daily Digest 10/8 - High Frequency Signing, Gold In The ...

Apparently our justice system is now officially at a tipping point. Once people feel that justice is not blind, the consequences will not be pretty. People, not feeling that the system works anymore, may take justice into their own hands against those perpetrating fraud and/or just ignore the legal system's requirements. When enough people do either, we will have anarchy. Don't believe it? Just ask those "in the know" what happened after Katrina in New Orleans when law and order absolutely dissapeared. Lawlessness....police under attack....looting...raping.....etc, etc.

I agree with DamntheMatrix....the world is about to really change. God help us all.

TechGuy's picture
TechGuy
Status: Gold Member (Offline)
Joined: Oct 13 2008
Posts: 366
Re: Taxpayer Subsidy of Car Industry Again With Greenwashing

Carbon credit are simply a tool created by investment banks to take money away from hardworking americans and give it to the banks, who than use the money to by private jets, and Humvees.

Second it dones nothing to cull pollution pouring out of China, and other developing countries. Developing countries have no law or regulations on emissions. China probably now produces more pollution than the rest of the world combined. If you want to help reduce pollution stop buying Chinese productions includes stuff like iPods and iPhones.

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Taxpayer Subsidy of Car Industry Again With Greenwashing
TechGuy wrote:

Carbon credit are simply a tool created by investment banks to take money away from hardworking americans and give it to the banks, who than use the money to by private jets, and Humvees.

Second it dones nothing to cull pollution pouring out of China, and other developing countries. Developing countries have no law or regulations on emissions. China probably now produces more pollution than the rest of the world combined. If you want to help reduce pollution stop buying Chinese productions includes stuff like iPods and iPhones.

+1!!!

idoctor's picture
idoctor
Status: Diamond Member (Offline)
Joined: Oct 4 2008
Posts: 1731
Re: Daily Digest 10/8 - High Frequency Signing, Gold In The ...

BEST BANG FOR UNCLE BUCK LOL!

With solid leadership like this who wants or even needs a job. No need to pay the mortgage since mortgage-gate has hit then just get qualified for some of these best bang for the buck programs & party on. Surely this party will last forever??? Someone needs to stop getting all those face lifts....she needs a brain lift!

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments