Daily Digest

Daily Digest 7/7 - Decades That Will Define Us, The Next Worse Financial Crisis, Farmers Fear Dust Bowl Return

Thursday, July 7, 2011, 10:45 AM
  • Decades That Will Define Us
  • The Great, Government Induced Housing Bubble
  • The Next, Worse Financial Crisis
  • We Need A Depression - Now
  • Denmark fences itself off from the EU, raising disintegration fears
  • Sellers Brace for New Mortgage Caps
  • U.S. Farmers Fear The Return Of The Dust Bowl
  • Almost Half The Children In Fukushima Test Positive For Radiation

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Economy

Decades That Will Define Us (adam)

Martenson points out that the unsustainable trends in the three Es — economy, energy and environment — have finally caught up with us. The author uses hard numbers to prove that the “Twenty Teens” could be one of the most challenging decades for mankind. What Martenson brings out is not quite pleasant. To explain the linkage between the three Es, he introduces the fourth E — exponential growth.

The Great, Government Induced Housing Bubble (Phil H.)

In his latest column, George Will reviews the scalding new book “Reckless Endangerment" by New York Times columnist Gretchen Morgenson and housing finance expert Joshua Rosner.

The Next, Worse Financial Crisis (Michael W.)

Executives like Dick Fuld at Lehman Brothers and Angelo Mozilo at Countrywide , along with many others, cashed out hundreds of millions of dollars before the ship crashed into the rocks. Predatory lenders and crooked mortgage lenders walked away with millions in ill-gotten gains. But they aren’t in jail. They aren’t even under criminal prosecution. They got away scot-free. As a general rule, the worse you behaved from 2000 to 2008, the better you’ve been treated. And so the next crowd will do it again. Guaranteed.

We Need A Depression - Now (June C.)

Yes, depression. Spelled: d-e-p-r-e-s-s-i-o-n. Wake up America, recessions do not work. Won’t work in the future. Remember that 30-month recession after the dot-com crash? Didn’t work. Why? Because in the decade since that 2000 peak, Wall Street’s lost an inflation–adjusted 20% of America’s retirement money. And what about the so-called Great Recession of the 2008 credit meltdown? Didn’t work either. In fact, made matters worse: Wall Street got richer by stealing from the other 98% of Americans, the middle class, the poor. And now their conservative puppets in Washington want to make matters worse, widening the wealth gap further to benefit the Super Rich.

Denmark fences itself off from the EU, raising disintegration fears (Johnny Oxygen)

From Tuesday, 50 Danish customs officers will be stationed at the country’s borders to perform spot checks on vehicles. The move is part of a plan approved by parliament last Friday, which also see permanent buildings installed on the borders.

The Danish government insists that the re-establishment of border checkpoints is meant to prevent drug flow and illegal migrants from entering the country. The move is regarded as a bad sign by left-wing politicians and the opposition in Denmark itself, where many are seeing it as a concession to nationalists which may damage the country’s economy.

Sellers Brace for New Mortgage Caps (txfloods)

"Sellers are going to have to reduce their prices if borrowing costs rise," said Scott Sheldon, a loan officer with First Cal Mortgage in Petaluma, California.

U.S. Farmers Fear The Return Of The Dust Bowl (SolidSwede)

Happy's problem is that it has run out of water for its farms. Its population, dropping 10 per cent a year, is down to 595. The name, which brings a smile for miles around and plays in faded paint on the fronts of every shuttered business – Happy Grain Inc, Happy Game Room – has become irony tinged with bitterness. It goes back to the cowboy days of the 19th century. A cattle drive north through the Texas Panhandle to the rail heads beyond had been running out of water, steers dying on the hoof, when its cowboys stumbled on a watering hole. They named the spot Happy Draw, for the water. Now Happy is the harbinger of a potential Dust Bowl unseen in America since the Great Depression.

Almost Half The Children In Fukushima Test Positive For Radiation (Johnny Oxygen)

Some 45 per cent of 1,080 children under 15 from the Japanese Fukushima Prefecture have tested positive for thyroid exposure to radiation, a nuclear watchdog report says.

The screening was performed by Japan’s Nuclear Safety Commission between March 26 and March 30 in the wake of the Fukushima Daiichi nuclear disaster, the independent body said on Tuesday.

Among those who tested positive, the degree of exposure was measured at 0.04 microsieverts per hour or less in the majority of cases. The maximum measured was 0.1 microsieverts per hour in a one-year-old. The government-established threshold for further investigation is 0.2 microsieverts per hour, so no emergency probe will be undertaken, officials said.

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."

9 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4164
World Food Prices Climb on Sugar, Dairy Costs

"The cuts are so severe that many don't expect them to stand. But if they do, towns will be hit hard: Camden was anticipating $69 million, nearly 40 percent of the city budget being drafted. Trenton, which was counting on $24 million, will see its budget deficit nearly quadruple. And Asbury Park, already awarded $10.4 million, will be unable to balance its $42 million budget -- unless it raises the local tax levy by 101 percent."

"World food prices rose in June as the cost of sugar, meat and dairy increased, adding to inflationary pressure that has prompted central banks across the world to raise interest rates.

An index of 55 food commodities rose to 233.8 points from 231.4 points in May, the United Nations’ Food and Agriculture Organization said in a report on its website today."

"The elected treasurer of the US city of Chicago has said that it will take a generation to repair its public finances.

Speaking at the CIPFA conference in Birmingham today, Stephanie Neely said that the city was trying to ask taxpayers how many services they were willing to give up in order to close the city's $700m deficit.

This is expected to reach $1bn in a few years, and will lead to ‘some extremely difficult choices that will drastically change Chicago for the next generation’, she said.

Sharing her experience since taking the post in 2006, she said: ‘In this time of austerity we are going to have to decide what services are essential and what are not.’"

"The Obama administration is trying to make it easier for homeowners who lose their jobs to keep their homes.

The administration today will announce that two programs providing unemployed homeowners a few months' forbearance on their mortgages will be extended to 12 months, said three administration officials speaking anonymously because the program has not been announced. Thousands of homeowners could benefit from the additional time, although not all jobless homeowners will be eligible.

The action is being taken as part of the administration's effort to help prevent foreclosures while unemployment remains above 9% and the economy struggles to rebound. In May, 6.2 million people — 45% of the unemployed — had been without work for at least 27 weeks. New figures are due out Friday."

 

  • Other news, headlines and opinions:

China Should Diversify FX Holdings, Dollar 'Unsafe' - Former PBOC Adviser

U.S. Treasury secretly weighs options to avert default

U.S. Treasury Department Says It Sees No Alternative to Raising Debt Limit

Bondholders May Compete With Farmers If U.S. Forced to Choose in Default

S&P says US will get lowest rating if it defaults

Gallo Sees `Imminent Risk' of Disorderly Europe Default (Video)

European Stocks Extend Gains as Trichet Suspends Portugal Collateral Rules

Spain borrowing rates jump in debt sale

Italy's debt needs surge as costs rise to euro-era record

Italian Interest Costs Set to Jump $14 Billion a Year Unless Yields Drop

France Must Meet Targets As AAA Loss Would Hit Euro Zone-Commission

Portuguese 5 year credit default swaps rise to record 1,015 bps, up 95 bps on day

Ireland's debt at risk of 'junk' status for first time and Ireland next in line for junk credit rating, say analysts

Lehman Borrowed $18B From Secret Fed Program

Alabama May Offer Help To Stricken Jefferson County -Official

Patterson wants Oakland County to be able to end police contract if Pontiac files bankruptcy

Medicare Unveils Plan to Cut Doctor Pay by 30%

China vows to clean up local government debt

Detroit resident owes $13,754 in parking tickets as city begins crackdown with extended hours

Houston's pension plight is like a slow-motion crash (Editorial)

Treasury to sell $66 billion in debt next week

bogwood's picture
bogwood
Status: Member (Offline)
Joined: Jun 13 2008
Posts: 13
In Gold We Trust

An extended summary on the Acting -Man site.  2300 target but other scenarios.

land2341's picture
land2341
Status: Gold Member (Offline)
Joined: Aug 20 2009
Posts: 402
viewpoints at odds

Article two - The great Government induced housing bubble and article three - The NExt Worst Financial Crisis are at odds with one another.  

Sanity lies in the balance of power between government, industry and the people.  

 

The idea of blaming the entire housing crisis only on the government is simply ridiculous.  It was only after the government forced banks to discover that housing poor people could be profitable that the banking system went berserk with the idea.  It was only after the government was forced into guaranteeing those loans that banks went berserk with that trust and destroyed the economy.

Blaming it all on the government underlies the ongoing - get rid of the government ethos - that helped get us into this mess.  Yes, government is over reaching,  but it is necessary.

All three legs have proven over and over that they will take too much power and become corrupt,  but all three remain necessary in balance to make anything that works.  Currently, we have the bizarre situation where one leg (industry) has the people convinced that the government and even the people themselves (unions) have too much power and need to be curtailed.

 

phecksel's picture
phecksel
Status: Silver Member (Offline)
Joined: May 24 2010
Posts: 204
Land, Knowing people in the

Land,

Knowing people in the banking industry that I do, where they were told if they didn't loan to non qualified borrowers they would be held in violation, banks do what any business would do, they went after the profit.  Then the govt agreed to guarantee and purchase those loans, allowing them to continue exponential lending, creating a bigger and bigger bubble, which I don't believe we have see the final chapter on.

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1449
Markets not Crashing?

Did QE3 already start?  $4B per day extracted and markets still stable or going up???   Chris...

rhare's picture
rhare
Status: Diamond Member (Offline)
Joined: Mar 30 2009
Posts: 1326
Government is necessary? Yes - but housing?
land2341 wrote:

The idea of blaming the entire housing crisis only on the government is simply ridiculous.  It was only after the government forced banks to discover that housing poor people could be profitable that the banking system went berserk with the idea.  It was only after the government was forced into guaranteeing those loans that banks went berserk with that trust and destroyed the economy.

My that's mighty revisionist.  How about the banks didn't want to lend (rightfully so) to people who couldn't pay back loans.  However because of CRA they were forced to make loans.  Then the government via Freddie, Fannie, FHA guaranteed loans so that risk is completely removed encouraging even more lending. The on top of it we have the Fed pumping out free money to the big banks since there would be no way for the bubble to grow as large if investors had to directly risk their assets.

So exactly how was the government not directly responsible for all this?

land2341 wrote:

Blaming it all on the government underlies the ongoing - get rid of the government ethos - that helped get us into this mess.  Yes, government is over reaching,  but it is necessary.

So why is it necessary for government to be involved in housing?

Bubbles, Distortions, Corruption, Fiat Currency - gee I guess your right, we need government. Surprised

 

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
And here they come, first a trickle and then a stampede

The Company believes its approach enhances the efficiency of thermal energy production because all costs associated with fossil fuels are obviated.  There is an absence of combustion and there are no emissions, or need for chimneys, flues and fuel.  The high temperature and high pressure systems can be adapted to produce hot water or steam in boilers for emissionless space heating applications.  More advanced applications of Brillouin’s technology could power boilers for motive marine power and desalinization applications.  Refinement and development of the technology could ultimately provide methods that significantly reduce costs associated with electric power generation.

Rossi anticipated competition.

http://www.brillouinenergy.com/

Thanks for the work Ruby Carat

http://coldfusionnow.wordpress.com/2011/07/07/funding-dam-breaks-for-bri...

 

 

AinSophAur's picture
AinSophAur
Status: Member (Offline)
Joined: Sep 25 2009
Posts: 18
US wonderbra

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4164
Average (Mean) Duration of Unemployment...graph

Other current graphs are here (from my previous post). The graphs will be current, but the data posted with them in my previous post is not. Click on the links above them for more info.

 

Average (Mean) Duration of Unemployment

Average (Mean) Duration of Unemployment

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