Daily Digest

Daily Digest 11/30 - Pressure Builds In Eurozone, Public Sector Job Losses To Hit 600k, NJ Food Stamp Use Doubles

Wednesday, November 30, 2011, 11:45 AM
  • Pressure Builds As Eurozone Ponders Debt Solutions
  • Long-term youth unemployment doubles in four years
  • Public sector job losses to hit 600,000 by 2016
  • Greek bank deposit outflows in Sept-Oct hit 13-14 bln euros
  • U.S. States Face $40 Billion in Deficits in 2013, Survey Shows
  • Greece's NBG Falls To Net Loss As Debt Provisions Bite 
  • Italy 3-yr auction yield jumps to record 7.89 pct
  • Detroit council braces for state intervention in budget mess
  • Metal thieves target car catalytic converters
  • Gross Says Europe Won't Escape Debt 'Straitjacket' for Years
  • Idaho families using food stamps gain national attention
  • Number of NJ Residents Receiving Food Stamps Doubles
  • Salvation Army food pantry in need of donations
  • Las Vegas home prices fall to February 1998 levels
  • Homeless elementary students face harsh reality of job loss
  • UC regents' meetings disrupted by protesters
  • College Students Protest Tuition Hikes
  • CUNY tuition hike is a hard lesson for city students
  • Tuition at UT Austin may increase again
  • Child Poverty Rises in 96 of Top 100 School Districts Since 2007
  • Cost of 12 Days of Christmas Mirrors National Economy
  • Surging gold prices push Indians to rein in, recycle
  • Fed's Yellen Sees Scope for More Easing to Spur Recovery
  • Fitch may lower Fannie, Freddie debt outlook
  • Watchdog leaves EU banks in dark on capital
  • Eurozone ministers OK $10.7 billion Greek loan
  • European Nations Pressure Own Banks for Loans
  • AA retirees face sharp benefit cuts: PBGC
  • A French downgrade could derail eurozone rescue

Follow our steps to prepare for a world after peak oil, such as how to store & filter water

Economy

Pressure Builds As Eurozone Ponders Debt Solutions

The eurozone's 17 finance ministers converged on EU headquarters Tuesday in a desperate bid to save their currency — and to protect Europe, the United States, Asia and the rest of the global economy from a debt-induced financial tsunami.

The ministers were discussing ideas that only weeks ago would have been taboo: countries ceding fiscal sovereignty to a central authority, an elite group of euro nations that would guarantee one another's loans but require strong fiscal discipline from members. Changes to existing rules are being touted as one way the eurozone can get out of its debt crisis, which has already forced Greece, Ireland and Portugal into international bailouts and is threatening to engulf bigger economies such as Italy, the eurozone's third-largest.

Long-term youth unemployment doubles in four years (Australia)

A study looking at youth employment has found young people make up almost a quarter of Australia's long-term unemployed. The Foundation for Young Australians has just released its annual How Young People Are Faring report.

Public sector job losses to hit 600,000 by 2016 (UK)

George Osborne was forced today to acknowledge a grim picture of declining growth and rising unemployment for the UK over the coming years. Unemployment was forecast to increase from 8.1% this year to 8.7% in 2012 before falling back to 6.2% by 2016.

And the OBR warned that as many as 600,000 jobs could be lost in the public sector by 2015/16 - a dramatic 50% increase on its previous estimate of 400,000. By the following year, that number could have reached 710,000.

Greek bank deposit outflows in Sept-Oct hit 13-14 bln euros

Greece's bank deposit outflows reached 13-14 billion euros in the September-October period, the country's central bank chief said on Tuesday, an annual jump of about 17 percent in October.

"In September and October, two very bad months due to political uncertainty, we had a loss of 13-14 billion euros," Bank of Greece Governor George Provopoulos told a parliamentary committee.

"This is a very big amount," he said, adding that bank deposit outflows continued in the first 10 days of November.

U.S. States Face $40 Billion in Deficits in 2013, Survey Shows

U.S. states must tackle at least $40 billion in budget gaps in the year beginning in July as federal stimulus funds decrease and expenses rise, according to a survey released today by the National Governors Association and the National Association of State Budget Officers.

Not all states have made forecasts for that year -- only 17 made deficit predictions -- and most are still grappling with shortfalls for fiscal 2012, which total $95 billion, the groups said. Revenue, while improved in 2012, won’t meet costs in areas such as health care and prisons, the report said.

Greece's NBG Falls To Net Loss As Debt Provisions Bite .

National Bank of Greece SA, Greece's largest lender by assets, said Tuesday it fell to a third quarter net loss after being hit by rising provisions against bad debts amid Greece's deteriorating economic conditions, and said it needs to boost capital ahead of an upcoming Greek debt write-down.

Italy 3-yr auction yield jumps to record 7.89 pct

Italy paid record yields of nearly 8 percent to sell three-year paper on Tuesday, a level seen driving its debt burden out of control if sustained over time.

Detroit council braces for state intervention in budget mess

As hopes of solving Detroit's financial crisis grow dimmer, the once-defiant City Council conceded Monday that the state likely will intervene by broadening the authority of some elected officials to privatize bus and lighting services, gain deep union concessions and sell government property.

Racing to stop the city from insolvency, the Detroit City Council offered a painful, sweeping rescue plan on Monday that would increase public transit fares, reduce trash pickup services and lay off hundreds of police officers and firefighters.

Metal thieves target car catalytic converters

In the last month, eight catalytic converters, a pollution-control device that helps reduce vehicle emissions, have been cut from six vehicles at Waikem Auto dealerships in Perry Township. It’s not the catalytic converter part, however, that is luring thieves to Waikem’s lots: It’s the metals inside them.

Catalytic converters contain metals such as palladium and rhodium. “You can blame it on the economy. People don’t have jobs, and scrap is at a peak right now,” said Doug Waikem, co-owner of Waikem Auto Group.

Gross Says Europe Won't Escape Debt 'Straitjacket' for Years

Investors should recognize that Europe's problems are global and it will be years before nations in the region can escape from their "straitjacket" of debt, Pacific Investment Management Co.'s Bill Gross said.

Idaho families using food stamps gain national attention (Video)

Idaho is making national headlines for becoming the new face of working class families utilizing federal assistance just to get by until the next paycheck comes in. Monday, NBC’s Rock Center featured two Nampa families who have no other choice but to enroll in federal assistance to buy groceries.

The number of families using food stamps is up 36 percent from 2010. Idaho has 235,000 families using federal dollars just to buy their kids and themselves food.

Number of NJ Residents Receiving Food Stamps Doubles

The number of New Jersey residents receiving food stamps has doubled in the last four years despite the state’s standing as No. 2 wealthiest in the nation. One in every 10 people in the state now receive aid – totaling 400,000 households, according to New Jersey Department of Human Resources.

Salvation Army food pantry in need of donations (N.Y.)

“We had to close for two weeks last month because our pantry was empty,” said Jon-Erik Berkhoudt. And with the holidays coming up, the Berkhoudts expect that number to increase even more.

Las Vegas home prices fall to February 1998 levels

Las Vegas-area home prices fell again in September to a new low during the current recession, Standard & Poor’s reported Tuesday.

Stung by elevated unemployment and high levels of foreclosures and underwater mortgages, Las Vegas saw housing prices fall 1.4 percent from August and 7.3 percent from September 2010, Standard & Poor’s said. Data from Standard & Poor’s S&P/Case-Shiller Home Price Indices show Las Vegas-area prices are now at levels last seen in February 1998 after September’s decline.

Homeless elementary students face harsh reality of job loss (Utah..video)

Losing a job can mean losing a home. It's a reality thousands of Utah families have confronted in the last few years. Homelessness has deeply impacted the lives of two young girls, and the situation is becoming so common that schools are having to adjust.

For example, about one in five of the students here at Washington Elementary live in the homeless shelter. It's a fluid situation that poses challenges for educators and especially for young students who are trying to make sense of it all, as well as trying to fit in.

UC regents' meetings disrupted by protesters

Lawmakers have cut hundreds of millions of dollars from UC's state allocation over the past few years, including $650 million this year alone. Another $100 million could be cut this winter if state revenues fall short as expected.

At the same time, the regents have raised tuition and fees annually since 2006, when they totaled $8,323. Tuition and fees this year amount to $13,218.

College Students Protest Tuition Hikes (Florida)

College students at seven Florida universities are holding protests this week against expected tuition hikes.

Most of the events are scheduled for Thursday, but Monday, University of South Florida students gathered at the campus entrance in protest. Tuition at all Florida universities is expected to rise 15 percent each year for up to the next ten years.

CUNY tuition hike is a hard lesson for city students (NY)

'I can't take any more loans,' student says...For this CUNY economics major, the $300 tuition hike approved Monday means a hard lesson about making ends meet for him and his entire family.

Tuition at UT Austin may increase again

The panel's recommendation would increase undergraduate tuition by $127, to $5,023, starting the fall of 2012. Tuition would go up an additional $131 the following year. Nonresident undergraduate students and graduate students could see tuition hikes of 3.6 percent.

Child Poverty Rises in 96 of Top 100 School Districts Since 2007

The child poverty rate rose during the recession in 1 of every 5 counties across the nation, the U.S. Census Bureau said today.

The increase in poverty between 2007 and 2010 was especially pronounced in the nation’s largest school systems, where 96 of the top 100 districts reported growth in the number of poor children, according to data compiled by Bloomberg.

Cost of 12 Days of Christmas Mirrors National Economy

The PNC Christmas Price Index® has been released this year and prices seem to be holding constant. The cost for a set of the gifts in the song “The Twelve Days of Christmas” bumped up a mere 3.5% to $24,263.18 for 2011. This follows a huge leap in 2010 of 9.2% to $23,439.38.

Surging gold prices push Indians to rein in, recycle

Simone Bora is contemplating the unthinkable -- an Indian wedding without lavish amounts of gold after record high prices and a sinking rupee have dimmed her hopes of sparkling at the party.

Indians are usually the biggest buyers of gold in the world and from October to December, the calendar is full of festivals and weddings, creating many opportunities for people to flaunt their finery.

Fed's Yellen Sees Scope for More Easing to Spur Recovery

Federal Reserve Vice Chairman Janet Yellen said the central bank has leeway to spur the U.S. recovery and reduce unemployment by buying more assets or clarifying its plan to sustain record-low borrowing costs.

"The Federal Reserve has some scope for action," Yellen said today. "We are actively considering methods that we could use to provide greater clarity" on the central bank's pledge to keep rates low through at least mid-2013, and new purchases have the potential to "flatten the yield curve."

Fitch may lower Fannie, Freddie debt outlook

The Fitch ratings agency will likely lower its outlook for debts linked to the U.S. government to negative, including debt of government-controlled mortgage buyers Fannie Mae and Freddie Mac.

The U.S. government rescued Fannie and Freddie in September 2008 and has funded them since the financial crisis. The two mortgage giants own or guarantee about half of all U.S. home loans and nearly all new mortgages. So if the U.S. government can't pay its bills, neither can Fannie and Freddie.

Watchdog leaves EU banks in dark on capital

Europe's banking watchdog has delayed telling individual lenders how much capital they must raise to safeguard their survival until EU finance ministers can agree on broader plans to shore up confidence in the financial system.

The delay is a blow to banks and investors keen to get to grips with how much cash is needed as the bank sector faces multiple risks that threaten to spill over to the real economy.

The European Banking Authority (EBA) had planned to finalise by Wednesday how much cash banks need to meet a minimum 9 percent core capital -- a preliminary estimate had put it at 106 billion euros ($141.5 billion) for the 70 lenders under scrutiny.

Eurozone ministers OK $10.7 billion Greek loan

With Italy sinking rapidly into financial chaos, the eurozone's 17 finance ministers scrambled Tuesday to find enough money to give their rescue fund a veneer of credibility and the markets some reason to believe their embattled currency won't break up.

Italy's borrowing rates shot up above 7 percent, an unsustainable level in the long term and a shocking increase over rates just last month. Markets rose for the second day Tuesday on hopes that the enormous pressures on the ministers would produce some results.

European Nations Pressure Own Banks for Loans

Some European nations, struggling to find buyers for their bonds, are pressuring their own already-stressed banks to fill the gap by acting as lenders of last resort—in certain cases, pushing the amount of risky European debt on those institutions' books even higher.

Italy and Portugal, among other European governments, are leaning on their banks to continue buying—or at least to stop selling—government bonds, according to people familiar with the matter. Meanwhile, in Spain and other European countries, the quantities of loans banks are doling out to local and national governments have been rising sharply.

AA retirees face sharp benefit cuts: PBGC

Retirees of American Airlines parent AMR Corp. /quotes/zigman/217884/quotes/nls/amr AMR -77.62% could lose $1 billion in benefits if the bankrupt carrier decides to end its four pension plans, according to a Tuesday statement from the U.S. agency responsible for protecting pension benefits. AMR's pension plans cover almost 130,000 participants, but collectively had just $8.3 billion in assets to cover about $18.5 billion in benefits, the Pension Benefit Guaranty Corp. said. Congress limited the size of pensions the PBGC can pay for, so AMR retirees should expect their pensions to be dramatically cut, the agency said. "As we did with Visteon, and with some plans at Delta /quotes/zigman/463579/quotes/nls/dal DAL +5.11% and Northwest Airlines, we will encourage American to fix its financial problems and still keep its pension plans," the agency said. The PBGC added it recorded a $26 billion deficit as a result of failed plans the agency has already assumed

A French downgrade could derail eurozone rescue

"It wouldn't surprise me if France got downgraded," said Kathy Jones, fixed-income strategist at Charles Schwab, noting that several other European governments have recently faced their own downgrades.

But a downgrade of France's credit rating would have serious repercussions for the European Financial Stability Facility, which European Union leaders have billed as a "firewall" against the debt crisis spreading across the eurozone. France is the second-largest backer of the EFSF, after Germany. Paris stands behind over €158 billion worth of loan guarantees under the latest iteration of the rescue fund. "If France gets downgraded, the stability fund gets downgraded too," said Jones. "That's the real concern."

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12 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Online)
Joined: Jul 30 2009
Posts: 4167
The Thirteen Days of Christmas: A European Implosion

 

"Major central banks around the globe took coordinated action Wednesday to ease the strains on the world's financial system, saying they would make it easier for banks to get dollars if they need them. Stock markets rose sharply on the move.

The European Central Bank, U.S. Federal Reserve, the Bank of England and the central banks of Canada, Japan and Switzerland are took part.

As Europe's debt crisis has been rapidly spreading, the global financial system is showing signs of entering another credit crunch like the one that followed the 2008 collapse of U.S. investment bank Lehman Brothers. The possibility that one or more European governments might default on their debts have raised fears of a shock to the global financial system that would lead to severe losses for banks, recession in the United States and Europe and another global credit crunch.

The central banks said in a joint statement the moves were designed to "provide liquidity support to the global financial system."

The statement said the central banks have agreed to reduce the cost of temporary dollar loans to banks — called liquidity swaps — by a half percentage point. The new, lower rate will be applied to all central bank operations starting on Monday.

They are also taking steps to ensure banks can get ready money in any currency if market conditions warrant by establishing a temporary network of reciprocal swap lines. "

...........................1A) Here Comes The Global, US-Funded Liquidity Bail Out (Zerohedge)

............................1B) Did A Large European Bank Almost Fail Last Night? (Zerohedge)

Other headlines:

  1. S&P Downgrades Global Banks
  2. Europe delays major debt decisions for 10 days
  3. Central Banks Pushed to Act as Funding Squeeze on Banks Worsens
  4. Romania’s Local-Currency Credit Rating Lowered to BB+ by S&P
  5. India’s fiscal gap seen widening
  6. Britain has no more room to keep AAA rating: Fitch
  7. The Thirteen Days of Christmas: A European Implosion (McAlvany audio...a must listen all the way to the end)

 

.....................Everyone celebrate! Great News! The central banks have saved the world!!!

doorwarrior's picture
doorwarrior
Status: Silver Member (Offline)
Joined: Oct 13 2009
Posts: 166
How far we have fallen

 

http://www.zerohedge.com/contributed/senate-passes-bill-allowing-indefinite-detention-americans-considers-bill-authorizing-mo

Zerohedge

The Senate passed a bill today allowing indefinite detention of American citizens living within the U.S.

While some have claimed that this is incorrect, and that American citizens would be exempted from the indefinite detention within U.S. borders authorized by the Act, the Committee chairman who co-sponsored the bill – Carl Levin – stated today in Senate debate that it could apply to American citizens.

Levin cited the Supreme Court case of Hamdi which ruled that American citizens can be treated as enemy combatants:

“The Supreme Court has recently ruled there is no bar to the United States holding one of its own citizens as an enemy combatant,” said Levin. “This is the Supreme Court speaking.“

Under questioning from Rand Paul, co-sponsor John McCain said that Americans suspected of terrorism could be sent to Guantanamo.

 

 

Zerohedge:

The provision would authorize the military to indefinitely detain individuals — including U.S. citizens — without charge or trial.

 “If these provisions pass, we could see American citizens being sent to Guantanamo Bay,” Rand said in the video. “This should be alarming to everyone watching this proceeding today. Because it puts every single American citizen at risk.”

“There is one thing and one thing only protecting innocent Americans from being detained at will at the hands of a too-powerful state — our Constitution, and the checks we put on government power,” he continued. “Should we err today and remove some of the most important checks on state power in the name of fighting terrorism, well, then the terrorists have won.”

 “Detaining citizens without a court trial is not American. In fact, this alarming arbitrary power is reminiscent of Egypt’s ‘permanent’ Emergency Law authorizing preventive indefinite detention, a law that provoked ordinary Egyptians to tear their country apart last spring and risk their lives to fight.”

 

If anyone was wondering if we live in a police state, then wonder no longer.

Rich

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Online)
Joined: Jul 30 2009
Posts: 4167
Job cuts surpass 2010 levels

 

"Announced job cuts so far this year now exceed last year's total, and Challenger, Gray and Christmas CEO John Challenger says that contradicts the economic recovery story we've all been told."

NZSailor's picture
NZSailor
Status: Bronze Member (Offline)
Joined: Oct 4 2008
Posts: 61
Europe crisis has worsened: ECB

"European Central Bank governing council member Christian Noyer said on Wednesday Europe's debt crisis had significantly worsened, threatening global financial markets, but was confident the euro area would emerge stronger and more cohesive..."

'We are now looking at a true financial crisis - that is a broad-based disruption in financial markets.''

 

''In a period of intense market disruption, it is essential to ensure that the monetary policy transmission mechanism actually works. This may involve temporary and exceptional interventions on those market segments where dysfunctions are most apparent,'' Noyer said.

He did not elaborate on the remarks.

 

More here:

http://www.stuff.co.nz/business/world/6063016/Europe-crisis-has-worsened...

 

 

 

Poet's picture
Poet
Status: Diamond Member (Offline)
Joined: Jan 21 2009
Posts: 1891
How Far Has McCain Fallen?

Doorwarrior:

John McCain, who was tortured for years in Vietnam, detained for what he thought was an indefinite period of time...

John McCain, who almost became President of the United States...

John McCain co-sponsored this bill.

Poet

earthwise's picture
earthwise
Status: Platinum Member (Offline)
Joined: Aug 10 2009
Posts: 848
How far has McCain fallen? None!!
Poet wrote:

Doorwarrior:

John McCain, who was tortured for years in Vietnam, detained for what he thought was an indefinite period of time...

John McCain, who almost became President of the United States...

John McCain co-sponsored this bill.

Poet

 

This is who he is. Don't let the (R) by his name fool you. He's always been known as a RINO. His service to his country was honorable and his POW experience was heroic. But his political career is one of a typical politician: shameful and abysmal.

doorwarrior's picture
doorwarrior
Status: Silver Member (Offline)
Joined: Oct 13 2009
Posts: 166
Right vs. Left is a joke

I have given up on both the (D) and the (R). There is only one party in this country anymore and it certainly does not represent the people.  All of the left  vs. right  bickering is nothing more than a side show to keep us, the people, divided while TPTB divide up the nations riches and write the laws that keep us as serfs in our "free" country.

What I can't understand is why most people don't even seem to care that the constitution is completely ignored by todays government.  We lose more of our freedoms everyday to a government that is reckless and selfserving yet most people approve of the "job" they are doing. They outright lie to our faces and no one ever calls them on their lies. They steal, pillage and plunder the labor of our children and unborn grandchildren along with our national resources and yet these politicians are celebrated among their parties as great people.

I feel a great sadness in my heart when I think of what this country was supposed to be. No matter how this plays out we will all suffer greatly in the comming years. May all of our preps. be enough to get us through.

Rich

dbworld's picture
dbworld
Status: Member (Offline)
Joined: Sep 14 2009
Posts: 10
World's central banks act to ease market strains

Chris, tell us you are digging into this one to help us understand. You could give insider - work in progress, so that we know you're working it.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Defkalion enters the CF market.

You can download the Defkalion Cold Fusion reactor spec sheet here.

Defkalion is going into the market head to head with Rossi. In the absence of patents this could be ugly. Soon there will be a rash of new entries into the field.

The patent offices of the world have had the wool pulled over their eyes by obdurate old geezers in white coats.

Thanks again Ruby.

By the way, Ruby will be giving a TED talk at Fort Lauderdale on the 10th Dec. Make a note in your calendar.

I hope she doesn't encounter too many outraged folks with flaring nostrils.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Prof Steve Keen on Russia Today

Prof Steve Keen explains that the World is already in a depression.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Eclipsed by the sun.

On a lighter note, on a radio talkback program here in Australia a climate change denialist was trying to put his case across.

He said "We all know that the Earth goes around the sun. Now I dont know how long it takes to go around but.   .   ."

I never heard the rest of the conversation.

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