Daily Digest

Daily Digest 11/15 - Original OWS Site Cleared Of Protestors, S&P Accidentally Lowers France's Rating, Top 10 Pollution Causes

Tuesday, November 15, 2011, 10:46 AM
  • Police Clear Zuccotti Park of Protesters
  • Oops: S&P Accidentally Lowers France's Credit Rating
  • Europe’s debt crisis raising odds of US recession
  • Harry and Lloyd Explain US Debt: “Whatever We Borrow We Pay Back”
  • Europe’s Disaster Is Headed Our Way
  • Executive Excess 2011: The Massive CEO Rewards for Tax Dodging
  • Mr President - It's Time to Make a Decision on the Keystone XL Pipeline
  • Review of Emerging Resources: U.S. Shale Gas And Shale Oil Plays
  • Energy Independence - The Big Lie
  • Mongolia Bids To Keep City Cool With 'Ice Shield' Experiment
  • Top Ten Causes Of Toxic Pollution

Learn how to protect your wealth against the Three E forces using our 'What Should I Do?' guide


Police Clear Zuccotti Park of Protesters (jdargis)

Mr. Bloomberg said the city had planned to reopen the park on Tuesday morning after the protesters’ tents and tarps had been removed and the stone steps had been cleaned. He said the police had already let about 50 protesters back in when officials received word of a temporary restraining order sought by lawyers for the protesters. He said the police had closed the park again until lawyers for the city could appear at a court hearing later in the morning.

Oops: S&P Accidentally Lowers France's Credit Rating (jdargis)

This is S&P's second doozy of the year, after a $2.1 trillion error in the calculations leading to the U.S. downgrade in August. And, you know, that whole subprime mortgage thing.

Europe’s debt crisis raising odds of US recession (Jeff B.)

The weak U.S. economy is more than usually vulnerable to turbulence beyond its borders, as the unexpectedly severe U.S. effects from Japan's devastating earthquake in March demonstrates, the researchers said.

"A European sovereign debt default may well sink the United States back into recession," wrote Travis Berge, Early Elias and Oscar Jorda in the latest San Francisco Fed Economic Letter. "However, if we navigate the storm through the second half of 2012, it appears that danger will recede rapidly in 2013.

Harry and Lloyd Explain US Debt: “Whatever We Borrow We Pay Back” (humor, Nickbert)

At this weekend’s Asia-Pacific Economic Cooperation summit President Obama harshly criticized Chinese currency policy calling for China’s leaders to act like grown ups when it comes to economic affairs.

On that note, we present the current grown-up debt management policies of the U.S. Congress as explained by Harry and Lloyd."

Europe’s Disaster Is Headed Our Way (Safewrite)

Niall Ferguson: Europe’s problem is not just that governments are overborrowed. There are an unknown number of European banks that are effectively insolvent if their holdings of government bonds are “marked to market”—in other words, valued at their current rock-bottom market prices. In our interconnected financial world, it would be very odd indeed if no U.S. institutions were affected by this. Just as European institutions once loaded up on assets backed with subprime U.S. mortgages, so most big U.S. banks have at least some exposure to eurozone bonds or banks.

Executive Excess 2011: The Massive CEO Rewards for Tax Dodging (Michael W.)

We researched the 100 U.S. corporations that shelled out the most last year in CEO compensation. At 25 of these corporate giants, we found, the bill for chief executive compensation actually ran higher than the company's entire federal corporate income tax bill.

Corporate outlays for CEO compensation — despite the lingering Great Recession — are rising. Employment levels have barely rebounded from their recessionary lows. Top executive pay levels, by contrast, have rebounded nearly all the way back from their pre-recession levels.


Mr President - It's Time to Make a Decision on the Keystone XL Pipeline (James S.)

Was this a courageous decision by the Obama Administration? Absolutely not. It was the politically expedient decision, which in my view is the source of some of the biggest problems the world faces. We have political leaders who will not make courageous decisions. They debate and defer and try to make everyone happy. Instead, they should sometimes say “This is truly in the best interest of the U.S.” The Obama Administration could have taken this decision either way and made that statement, but instead they failed to make the tough decision because they fear political fallout.

Review of Emerging Resources: U.S. Shale Gas And Shale Oil Plays (ScubaRoo)

The advent of large-scale shale gas production did not occur until Mitchell Energy and Development Corporation experimented during the 1980s and 1990s to make deep shale gas production a commercial reality in the Barnett Shale in North-Central Texas. As the success of Mitchell Energy and Development became apparent, other companies aggressively entered the play, so that by 2005, the Barnett Shale alone was producing nearly 0.5 trillion cubic feet of natural gas per year. As producers gained confidence in the ability to produce natural gas profitably in the Barnett Shale, with confirmation provided by results from the Fayetteville Shale in Arkansas, they began pursuing other shale plays, including Haynesville, Marcellus, Woodford, Eagle Ford, and others.

Energy Independence - The Big Lie (JimQ)

It is too bad that our 255 million cars can’t run on hot air. American presidents have propagated the Big Lie of energy independence for the last three decades. The Democrats have lied about green energy solutions and the Republicans have lied about domestic sources saving the day. These deceitful politicians put the country at risk as they misinform and mislead the non-thinking American public. They have been declaring our energy independence for 30 years, but we import three times as much oil today as we did in the early 1980’s. The CPI has gone up 350% since 1978, but the price of a barrel of oil has risen 800% over the same time frame.


Mongolia Bids To Keep City Cool With 'Ice Shield' Experiment (Nickbert)

Mongolia is to launch one of the world's biggest ice-making experiments later this month in an attempt to combat the adverse affects of global warming and the urban heat island effect.

The geoengineering trial, that is being funded by the Ulan Bator government, aims to "store" freezing winter temperatures in a giant block of ice that will help to cool and water the city as it slowly melts during the summer.

The scientists behind the 1bn tugrik (£460,000) project hope the process will reduce energy demand from air conditioners and regulate drinking water and irrigation supplies. If successful, the model could be applied to other cities in the far north.

Top Ten Causes Of Toxic Pollution (James S.)

According to the United Nations Development Program, developed countries “consistently failed to meet their stated pledges” in fighting “the impact of climate change in developing countries.” The Blacksmith organization's top ten list consists of the collected data of over 2,200 sites where toxic pollution exists in levels above internationally accepted health standards.

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."


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Fed's Williams: More easing may be needed

(Reposting under today's news)

Just headlines:

  1. Italy 10-year bond yields rise back above 7%
  2. Spain borrowing costs jump at bill auction and Spain yields highest in 14 yrs at auction
  3. European Stocks Drop as Italy's Monti Faces Political Resistance
  4. Greek PM: 2011 deficit to reach 9 pct of GDP
  5. California Revenue $1.26 Billion Below Forecast, Agency Says
  6. Unicredit, Italy's largest bank, posts 10.6b euro loss in Q3
  7. Cuomo Says New York Budget Gap May Widen to $3.5 Billion
  8. Italy, Spain, France Credit Risk Surge to Records, Swaps Show
  9. EU Backs Limits To Naked CDS, Short-Selling
  10. Wealthy Found to Flee N.J. Tax
  11. Desert Underwater: Foreclosure Bomb Hits Nevada (Video)
  12. Fed’s Evans Calls For More Economic Stimulus Steps to Address Unemployment
  13. LPS: Prices Are 28.3% Below Peak in Mid-2006 (Home prices)
  14. Fed's Williams: More easing may be needed

"The Treasury Department dramatically boosted its estimate of losses from its $85 billion auto industry bailout by more than $9 billion in the face of General Motors Co.'s steep stock decline.

In its monthly report to Congress, the Treasury Department now says it expects to lose $23.6 billion, up from its previous estimate of $14.33 billion.

The Treasury now pegs the cost of the bailout of GM, Chrysler Group LLC and the auto finance companies at $79.6 billion. It no longer includes $5 billion it set aside to guarantee payments to auto suppliers in 2009.

The big increase is a reflection of the sharp decline in the value of GM's share price.

The current estimate of losses is based on GM's Sept. 30 closing price of $20.18, down one-third over the previous quarterly price. "

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more Euro wheels falling off


Slovenian Bond Yield Breaks 7%, First Time Since Euro Entry

November 14, 2011
By Boris Cerni


Nov. 11 (Bloomberg) -- Slovenia’s 10-year government bonds slid for a fourth day, with the yield topping 7 percent for the first time since the nation adopted the euro in 2007, as the debt crisis in Europe roils markets.

The yield rose to 7.14 percent at 1:05 p.m. in Ljubljana, according to Bloomberg data. The spread, or the difference investors demand to hold the securities instead of similar- maturity German debt, also advanced to a euro-era record of 545 basis points. A basis point is a hundredth of a percentage point.

Slovenia, which holds early elections next month, was cut by Standard & Poor’s, Moody’s Investors Service and Fitch Ratings on the government’s collapse, the poor economic outlook and a weak banking industry. The former Yugoslav republic is also a victim of its “proximity” to Italy, which is struggling to fend off an investor crisis of confidence.

“The worry is that turmoil in Italy will last for some time, pushing Slovenian bond yields even higher,” Michal Dybula, an economist at BNP Paribas in Warsaw, Poland, said in a phone interview yesterday. “However, even if they breach the 7 percent mark that would not be the same evil as in Italy.”

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Here are a couple of

Here are a couple of interesting posts:

"Guest Post: IEA Report Advises Governments To Embrace Renewables And Nuclear",

@ http://www.zerohedge.com/news/guest-post-iea-report-advises-governments-embrace-renewables-and-nuclear.  Excerpt:

Submitted by John Daly of OilPrice

IEA Report Advises Governments To Embrace Renewables And Nuclear

The good news is that on 8 November the International Energy Agency released its 2011 “World Energy Outlook.”

While it will cheer nuclear advocates, overall the report makes for grim reading.

Pulling no punches, the report states at the outset, “There are few signs that the urgently needed change in direction in global energy trends is underway.”
Stripped of its cautious language, the IEA report essentially noted that should present trends continue, the world’s governments through a lack of progressive initiative embracing alternative energy sources would continue to rely on ‘tried and true” fossil fuels, resulting in increased pollution, more fossil-fuel dependency and increasingly upward energy prices.


"JPMorgan Joins Goldman Keeping Italy Debt Risk in Dark",@ http://www.bloomberg.com/news/2011-11-16/jpmorgan-joins-goldman-keeping-investors-in-dark-on-italy-derivatives-risk.html,  Excerpt:

JPMorgan Chase & Co. (JPM) and Goldman Sachs Group Inc. (GS), among the world’s biggest traders of credit derivatives, disclosed to shareholders that they have sold protection on more than $5 trillion of debt globally.

Just don’t ask them how much of that was issued by Greece, Italy, Ireland, Portugal and Spain, known as the GIIPS.

As concerns mount that those countries may not be creditworthy, investors are being kept in the dark about how much risk U.S. banks face from a default. Firms including Goldman Sachs and JPMorgan don’t provide a full picture of potential losses and gains in such a scenario, giving only net numbers or excluding some derivatives altogether.



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