Daily Digest

Daily Digest 12/12 - MF Global Explained, Euro Crisis Pits Germany And U.S., Cod Scant In Gulf Of Maine

Monday, December 12, 2011, 10:44 AM
  • Unmanned Drones: It Turns Out We Can Spy Too!
  • Gold Re-Hypothecation Unwind Begins - HSBC Sues MF Global Over Disputed Gold Ownership
  • Eurozone Crisis Adds To Shipping Market Woes
  • Euro Crisis Pits Germany and U.S. in Tactical Fight
  • EU Leaders Must Avoid More Self-Inflicted Wounds to Euro Rescue Plan Work
  • MF Global Explained
  • Corzine's Lost Money
  • Scientists Say Cod Are Scant; Nets Say Otherwise
  • Japan Split on Hope for Vast Radiation Cleanup

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Unmanned Drones: It Turns Out We Can Spy Too! (Coley H.)

What anyone who cares one scintilla about the erosion of their civil liberties should be freaked about is this: The previously unreported use of drones from the U.S. Customs Service to assist local and state authorities occurred without our knowledge until the Sacramento Bee reported the story yesterday. That’s right… Incredibly, no public acknowledgment or debate occurred whatsoever.

Euro Crisis Pits Germany and U.S. in Tactical Fight (jdargis)

At the heart of the debate is the question of how far governments must bend to the power of markets. Mr. Obama sees retaining the stability of markets and the confidence of investors as a primary goal of government and a prerequisite for achieving any major changes in public policy. Mrs. Merkel views the financial industry with profound skepticism and argues, in almost moralistic fashion, that real change is impossible unless lenders and borrowers pay a high price for their mistakes.

EU Leaders Must Avoid More Self-Inflicted Wounds to Euro Rescue Plan Work (jdargis)

The result of a Brussels summit that French President Nicolas Sarkozy called the last chance to rescue the euro after a two-year debt crisis ended with leaders setting themselves a March deadline to flesh out new fiscal rules.

Gold Re-Hypothecation Unwind Begins - HSBC Sues MF Global Over Disputed Gold Ownership (kelvinator)

HSBC, that other great gold "depository" after JP Morgan (and the custodian of none other than GLD) is suing MG Global "to establish whether he or another person is the rightful owner of gold worth about $850,000 and silver bars underlying contracts between the brokerage and a client." …Suffice to say, expect either a prompt settlement in this lawsuit, or a fervent denial by all parties involved that any gold was misplaced. Because here is the punchline: each physical gold or silver bar has a unique deisgnator that should never be replicated, yet this is precisely what happened to lead to the lawsuit!

Eurozone Crisis Adds To Shipping Market Woes (Anton95)

The warnings come at the end of a year so grim for some of the most important shipping segments that many involved are already comparing conditions to the prolonged slump in the mid-1980s. One of the world’s leading shipping conglomerates – Korea Lines – and one of the best-known tanker operators – General Maritime – have already collapsed into bankruptcy protection as a ship glut has depressed earnings.

MF Global Explained (June C.)

This video explains causal links between OTC derivatives, the financial crisis of 2008, Alan Greenspan, Robert Rubin, Larry Summers, Jon Corzine and MF Global.


Corzine's Lost Money (June C.)

“Rather than invoke the Fifth Amendment to protect himself, Mr. Corzine couched his answers with enough caveats and denials of specific knowledge that it would be nearly impossible to claim that he lied or misled the committee.”

It seems we’ve gotten far away from his calls as governor to “Hold me accountable.”


Scientists Say Cod Are Scant; Nets Say Otherwise (jdargis)

The National Oceanic and Atmospheric Administration set a deadline in 2004 to rebuild the cod species by 2014, and the 2008 survey suggested that goal was within reach. But researchers now say the survey might have sharply overestimated the number of young cod; the new data suggest the spawning population is at only about 20 percent of the rebuilding target. The estimates are based on a mathematical model that uses data from a number of sources, including catch records and research trawlers that fish in the gulf several times a year.

Japan Split on Hope for Vast Radiation Cleanup (guardia)

Critics counter that the effort to clean Fukushima Prefecture could end up as perhaps the biggest of Japan’s white-elephant public works projects — and yet another example of post-disaster Japan reverting to the wasteful ways that have crippled economic growth for two decades.

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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OECD warns on global funding struggle

"Latvian authorities Monday said the weekend's run on Swedish banks there was started by false rumors aimed at destabilizing the country, and that its police forces were investigating the matter.
Latvians during the weekend withdrew unusual amounts of cash from Swedish banks' cash machines in the country, following rumors that Swedish banks could be in trouble, Communications Director Thomas Backteman at Swedish lender Swedbank AB (SWED-A.SK) said Monday.
Latvian Prime Minister Valdis Dombrovskis said that the rumor-spreading was done "in an effort to destabilize the situation Latvia," his spokesman confirmed Monday. "


"The credit ratings agency reiterated that it will review the ratings of all EU countries in the first three months of 2012.
Another agency, Standard & Poor's, is considering downgrading the debt of 15 of the 17 eurozone countries.
European shares were lower on Monday morning, with the Dax in Frankfurt falling 2.0% in early trading.
Moody's said that last week's EU summit offered "few new measures" to deal with the eurozone's sovereign debt crisis.
"The absence of measures to stabilise the credit markets over the short term means that the euro area, and the wider EU, remain prone to further shocks and the cohesion of the euro area under continued threat," the agency said in a statement.
Also on Monday, Greece was visited by the so-called "troika" of lenders from the EU, European Central Bank and International Monetary Fund."

"European banks turning to their governments to raise required capital could trigger a downward spiral of declining sovereign-debt prices and further losses for the lenders.
The European Banking Authority ordered the region’s banks on Dec. 8 to raise 115 billion euros ($154 billion) by June. Faced with dwindling profits and unable to tap capital markets to sell new shares, firms may be forced to seek government help. About 70 percent of the capital requirement falls on lenders in Spain, Greece, Italy and Portugal, countries struggling to convince the world they can pay their debts.
“If the Southern governments put money in their banks, their sovereign debt will go up, exacerbating their problems,” said Karel Lannoo, chief executive officer of the Centre for European Policy Studies in Brussels. “Then the banks’ losses will rise because they hold the government debt. That’s a vicious cycle. It’s hard to know which one to stabilize first, the sovereign bonds or the banks.” "


"Markets and governments face an uphill struggle to fund themselves next year amid extreme uncertainty over the euro zone and the global economy, as new figures reveal that the borrowing of industrialized governments has surged beyond $10-trillion this year and is forecast to grow further in 2012.

The Organization for Economic Co-operation and Development, which represents the leading industrialized nations, will warn in its latest borrowing outlook, due to be published this month, that financial stresses are likely to continue with the “animal spirits” of the markets – their unpredictable nature – a threat to the stability of many governments that need to refinance debt."

"For all the transparency forced on the Federal Reserve by Congress and the courts, one of the central bank’s emergency-lending programs remains so secretive that names of borrowers may be hidden from the Fed itself.

As part of a currency-swap plan active from 2007 to 2010 and revived to fight the European debt crisis, the Fed lends dollars to other central banks, which auction them to local commercial banks. Lending peaked at $586 billion in December 2008. While the transactions with other central banks are all disclosed, the Fed doesn’t track where the dollars ultimately end up, and European officials don’t share borrowers’ identities outside the continent. "


Other headlines:


  1. EU Failure on Unanimous Agreement May Consign Top-Rated Bonds to History
  2. S&P economist says time running out for EU: report
  3. German Property Funds to Sell $3.6 Billion of Trophy Assets
  4. China's Fiscal Revenue Growth Slows to 10.6% in November
  5. Italy's $71 Billion Needs Remain Crisis Flashpoint: Euro Credit
  6. Hungary Eyes IMF Deal of as Much as $15 Billion Euros, Citi Says
  7. Dollar Funding Costs Rise for a Third Day in Euro Money Markets
  8. Sovereign, Corporate Bond Risk Rise, Credit-Default Swaps Show
  9. Doctors Face Massive Cuts In Medicare Fees
  10. S&P puts insurers on negative watch
  11. California braces for more budget slashing with possible 'trigger' cuts
  12. Fitch Ratings Set to Cut Growth Forecasts for Asian Nations
saxplayer00o1's picture
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"significant economic downturn" in Europe in 2012 (Fitch)


NEW YORK (MarketWatch) -- U.S. stocks and the euro extended a decline in midday trading Monday after Fitch Ratings said Europe's debt crisis will continue in 2012 as a comprehensive solution remains elusive, leading to a significant economic downturn there. The Dow Jones Industrial Average fell 225 points to 11,959. The S&P 500  shed 26 points to 1,229. The Nasdaq Composite  dropped 50 points to 2,597. The euro fell to $1.3191, its lowest level this month, compared with $1.3370 Friday.

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worth watching

 As Europe’s leaders roll up their sleeves and prepare to slug it out for the euro’s very survival, German parliamentarian Frank Schaeffler explains to RT why piling new debts on top of old ones can only lead to collapse.

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Arthur Robey
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Marshal McCluhan

"Don't like that idea? I have others."

Marshal McCluhan

It seems that there are other cold fusion methods that are available. Rossi is not the only show in town. It seems to me that some pet theories will go to the grave with their owners.

This is typical. Progress is made one death at  a time.

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Posts: 3200
Straits of Hormuz



It's on. Iran has just closed the Straits of Hormuz for military training as was expected yesterday, reports RanSquawk. Oil, and all other commodities, are outtahere.

I don't know how meaningful this is, but with commodities spiking, it seems an indication of what would happen in the real event.


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