Daily Digest

Daily Digest 2/15 - NYSE/Deutsche Börse Merger Finalized, Crony Capitalism And Modern Banking, Russia To Begin Arctic Drilling

Tuesday, February 15, 2011, 11:46 AM
  • New York and German Exchanges Seal Deal
  • Grand Theft USA - Prices Go Parabolic
  • Crony Capitalism and Modern Banking in the U.S.
  • Deficit Would Stay High for Years to Come
  • Russia Embraces Risky Offshore Arctic Drilling
  • Few Significant Changes in Energy-Area Spending
  • China’s Inflation Rises as Food Costs Surge
  • Ecuador Judge Orders Chevron to Pay $9 Billion

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Economy

New York and German Exchanges Seal Deal (jdargis)

NYSE Euronext and Deutsche Börse agreed on Tuesday to a $10 billion all-stock merger, combining two of the world’s biggest stock exchanges into a trans-Atlantic powerhouse.

The union of the operators of the New York Stock Exchange and the Frankfurt Stock Exchange is the biggest example of consolidation among exchanges, as established players contend with smaller electronic markets that have seized market share.

Grand Theft USA - Prices Go Parabolic (Ilene)

In other words, this is not Bernanke’s BS – THIS IS REALITY FOLKS – and reality is NOT GOOD! We’re talking parabolic short-term moves that you know and I know and the data shows is absolutely happening. Yet the Chairman of the Federal Reserve Bank of the United States of America tells us over and over and over again that it is not happening.

Crony Capitalism and Modern Banking in the U.S. (J.A.G.)

As soon as the United States government decided that it was going to underwrite all of the major banks (or more accurately sell naked credit protection i.e. sell credit default swaps on the major banks without collecting any premiums), the U.S. middle class died. I will try and lay it out as simple as possible.

Deficit Would Stay High for Years to Come (woodman)

The budget tees up the debate over the size and scope of government that is expected to dominate the presidential election campaign next year and would make only a modest dent in long-term deficits even in the unlikely event that it's enacted in full.

Energy

Russia Embraces Risky Offshore Arctic Drilling (jdargis)

Russia, where onshore oil reserves are slowly dwindling, last month signed an Arctic exploration deal with the British petroleum giant BP, whose offshore drilling prospects in the United States were dimmed by the Gulf of Mexico disaster last year. Other Western oil companies, recognizing Moscow’s openness to new ocean drilling, are now having similar discussions with Russia.

Few Significant Changes in Energy-Area Spending (jdargis)

Spending at the Department of Interior would remain at roughly the same level as past years, but with a major increase, to $358 million, for environmental and safety enforcement for offshore oil and gas drilling, to be offset largely with royalties and fees from oil companies.

Environment

China’s Inflation Rises as Food Costs Surge (jdargis)

Adding to a squeeze on food supplies, China's wheat-growing northeast is in the grip of a severe drought that threatens its crop. Beijing has launched a $1 billion emergency campaign of cloud-seeding and expanded irrigation.

Economists say Beijing responded too slowly to rising inflation pressures after China rebounded quickly from the 2008 global financial crisis on the strength of massive stimulus spending and a flood of lending by state-owned banks.

Ecuador Judge Orders Chevron to Pay $9 Billion (jdargis)

The 188-page ruling found Chevron responsible for damages of about $8.6 billion, and perhaps double that amount if Chevron fails to publicly apologize for its actions within 15 days. The judge also ordered Chevron to pay $860 million, or 10 percent of the damages, to the Amazon Defense Coalition, the group formed to represent the plaintiffs.

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4 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4148
Re: Daily Digest 2/15 - NYSE/Deutsche Börse Merger ...

"WASHINGTON -(Dow Jones)- U.S. President Barack Obama's fiscal 2012 budget plan projects that the U.S. Treasury will receive slightly more in payments from the U.S. Federal Reserve in 2011, a remittance that could help cut the budget deficit.

The Fed's income has surged due to a boost in earnings from securities it acquired during the financial crisis and its aftermath.

Budget documents that the Obama administration unveiled Monday note that, in 2010, the Treasury received $75.8 billion from the Fed. The budget plan goes on to project that the Treasury will receive $79.5 billion from the Fed in 2011 and $65.8 billion in remittances from the Fed in 2012."

"The delinquency rate on loans in U.S. commercial mortgage-backed securities, or CMBS, exceeded 9% for the first time ever, Moody's Investors Service said.

Commercial real estate has been pummeled as reduced occupancy rates and rents have put pressure on property owners, often causing them to fall behind on interest payments. Tightened credit standards and sharply lower property values in many areas have made it harder for landlords to refinance or sell buildings to repay maturing loans.

Last month's rate of 9.01% was up from 8.79% in December. The portion of soured loans rose rapidly early last year but at a more moderated rate in the second half. January was the seventh-straight month the rate increased by less than .25 percentage points."

"SPRINGFIELD, Ill. -- Just weeks after signing a major tax increase into law, Gov. Pat Quinn gets the privilege of telling Illinois lawmakers and taxpayers that the state's budget is still a mess.

Even with higher income taxes, Illinois won't have enough money to pay all its expenses for the coming year, let alone cover the billions in old bills that have been allowed to pile up.

When Quinn delivers his budget proposal Wednesday, he's likely to call for significant spending cuts in some areas. He will undoubtedly renew his call for borrowing $8.7 billion to pay old bills. And a document from his budget office indicates he wants to take another try at raising cigarette taxes."

  • Other news, headlines and opinion:

Deficit is biggest as share of economy since 1945

SC senator checking out South Carolina currency

Fannie, Freddie Could Cost $169 Billion to 2012

Alabama gov.:county bankruptcy an option (Jefferson County)

LA school board contemplates up to 5000 layoffs

Egypt-Inspired Protesters Battle Security Forces in Bahrain, Yemen, Iran

Budget Crunch Forces A New Approach To Prisons (NPR)

Eurogroup ministers agree to double size of bailout fund

Caltrain Budget Deficit Could Force Major Service Cuts

UK inflation surges to double BoE's target

Moody's Says Risk of Negative Outlook for US Debt Remains With Deficits

White House proposes boosting PBGC insurance costs and PBGC could increase premiums under budget proposal

Malloy Proposes Largest Tax Hike In History (Connecticut..."Every Tax To Be Raised")

Soros Raises SPDR Gold Holding 0.5% in Fourth Quarter

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2244
Re: Daily Digest 2/15 - NYSE/Deutsche Börse Merger ...

SaxPlayer, intersting article about the SC senator raising the idea of their own currency to protect against US $ hyperinflation.  The article made it sound like others there still treated it like the idea of a nutcase.  But when ideas like that start getting seriously proposed, it sure seems to me like an indicator that people are starting to become more aware of the deep crap we're in.

The LA teacher layoff proposition is pretty damned scary too.  If they go through with it, I hate to think how laying off 4 or 5 thousand teachers in LA could impact that area.  I have family out that way, and so get concerned when I see things like that! 

skynet1's picture
skynet1
Status: Member (Offline)
Joined: Aug 13 2009
Posts: 2
Interesting Peak Oil and implications post

I wrote a post on the unknown implications of peak oil over here:  I'd like to hear some of your thoughts. 

http://freedomofoceania.blogspot.com/2011/02/on-peak-oil-economic-planni...

 

Thanks!

Wendy S. Delmater's picture
Wendy S. Delmater
Status: Diamond Member (Offline)
Joined: Dec 13 2009
Posts: 1988
Re: Daily Digest 2/15 - NYSE/Deutsche Börse Merger ...

Pinecar, the SC alternative currency article leapt out at me for a different reason: I live in SC and 7 miles from the State House at the capitol in Columbia SC. I've already emailed SC State Senator Lee Bright about my willingness to work with him on this.I will let you all know if he responds to me.

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