Daily Digest

Daily Digest 4/11 - Pay Drought Over (For C.E.O's), The Fed's Most Dangerous Game, Soros Seeks New Global System

Monday, April 11, 2011, 10:43 AM
  • Balancing Act
  • The Drought Is Over (at Least for C.E.O.’s)
  • 7.1 Earthquake Aftershock Shakes Japan
  • The Fed's Most Dangerous Game: Checkmate
  • Premarket Summary: Inflationary Hysteria
  • Soros Seeks New Global System At Bretton Woods
  • Japan fails to stop radioactive discharge into ocean
  • Japan to stop pumping water into ocean today

Our 'What Should I Do?' guide has steps to cook, see & stay warm in times of power outage

Economy

Balancing Act (Ilene)

In rebalancing the Nasdaq-100, millions of shares of stocks will trade hands as various funds and institutions adjust their holdings to properly track the rebalanced index. We discussed our value-based premise for owning shares of Cisco, Intel and Microsoft in last week’s newsletter. We also provided options- based strategies for buying these stocks at a discount. Thanks to the announced rebalancing of the Nasdaq-100, these trade ideas are already in the black. Our premise hasn’t changed, and these trades are still reasonable though the prices of the stocks and options will be somewhat changed.

The Drought Is Over (at Least for C.E.O.’s) (jdargis)

Rarely has the view from the corner office seemed so at odds with the view from the street corner. At a time when millions of Americans are trying to hang on to homes and millions more are trying to hang on to jobs, the chief executives of major corporations like 3M, General Electric and Cisco Systems are making as much today as they were before the recession hit. Indeed, some are making even more.

7.1 Earthquake Aftershock Shakes Japan (pinecarr)

A magnitude 7.1 tremor shook buildings in Tokyo and a wide swathe of eastern Japan on Monday evening, triggering a small tsunami alert. NHK state television said it caused the off-site power supply for two damaged reactors to shut down. CNN reported that the tsunami alert had since been cancelled.

The US Geological Survey said the aftershock struck 38 km west of the city of Iwaki, at a depth of 13 km.

The Fed's Most Dangerous Game: Checkmate (pinecarr)

The Fed can only choose the least-worst option now: either destroy the real economy by sinking the dollar below support and unleashing the Inflation Monster, or abandon the "risk trade" stock market rally.

Premarket Summary: Inflationary Hysteria (pinecarr)

One word (well technically two) can describe what is going on in the electronic pre-market arena right now: inflationary hysteria. Gold is at a new record, wheat is surging, corn is at highest since 2008, crude at a new 30 month high, silver is at $41.10 - a new fresh post Hunt high, beans surging, etc, etc, etc. Essentially everything is bid, following news first reported on Zero Hedge that PIMCO is betting the farm that either inflation is about to go parabolic and force bondholders to dump everything, or that the Fed will have no choice but to pursue another round of QE, sending gold to $2,000 and unleashing the Weimar endgame.

Soros Seeks New Global System At Bretton Woods (pinecarr)

Billionaire investor and currency speculator George Soros is holding a conference to reform the world’s economy at the same site where today’s system was once agreed to.

Environment

Japan fails to stop radioactive discharge into ocean (jkibbe)

Prime Minister Naoto Kan's Democratic Party was likely to be punished at Sunday's local polls for his handling of the massive earthquake and tsunami that ravaged Japan's northeastern coast on March 11, killing 13,000 and triggering the world's worst nuclear accident since the 1986 Chernobyl disaster.

China and South Korea have also criticized Japan's handling of the nuclear crisis, with Seoul calling it incompetent, reflecting growing international unease over the month-long atomic disaster and the spread of radiation.

Japan to stop pumping water into ocean today (pinecarr)

TEPCO was forced to start pumping sea water into the plant after failing to restart the reactors' cooling systems. It has been pumping in nitrogen to cool the core, but officials say they are unsure of what to do next.

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."

7 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4165
rjs's picture
rjs
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 445
a couple things...
INET: Can Sovereignty and Effective International Supervision be Reconciled? The Challenge of Large Complex Financial Institutions - videos from bretton woods
Oil and trouble - THE IMF is rolling out its World Economic Outlook today, and it has already made public two analytical chapters of the report. One is on trends in the market for oil and the potential impact of rising prices on global output.
greenpower's picture
greenpower
Status: Member (Offline)
Joined: Mar 13 2011
Posts: 3
More info on Pimco's short position in U.S. debt

Gross, who manages the world's biggest bond fund and has spent recent months jawboning about the dangers of U.S. debt, has placed a $7 billion bet against Treasury bonds, according to the latest statistics released by his Pimco Total Return fund.

http://finance.fortune.cnn.com/2011/04/10/pimcos-gross-betting-against-u...

greenpower's picture
greenpower
Status: Member (Offline)
Joined: Mar 13 2011
Posts: 3
More info on the Italian ‘energy catalyzer’

“In some way a new kind of physics is taking place. It’s enigmatic, but probably no new laws of nature are involved. We believe it is possible to explain the process with known laws of nature,” said Hanno Essén, associate professor of theoretical physics and a lecturer at the Swedish Royal Institute of Technology and chairman member of the board (chairman until April 2) of the Swedish Skeptics Society.

The new trial was conducted in much the same way as the trial in January, and lasted for nearly six hours. According to observations by Kullander and Essén, a total energy of about 25 kWh was generated.

http://www.nyteknik.se/nyheter/energi_miljo/energi/article3144827.ece

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4165
saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4165
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