Daily Digest

Daily Digest 8/21 - The Fate of U.S. Debt, 2010 Bank Closures Climb to 118, Drawing Oil From Shale

Saturday, August 21, 2010, 10:47 AM
  • For a Change, U.S. Debt Is Staying in the U.S.
  • ShoreBank of Chicago, Seven Others Shuttered as 2010 Failures Climb to 118
  • Treasury 10-Year Notes Gain for Fourth Week as Economic Recovery Falters
  • The Fannie And Freddie Effect Is Here Long Term
  • Why is the U.S. Government Protecting BP?
  • Big Bets Laid Down on Pulling Oil Out of Rocks
  • Looking for Trouble on ‘Highway’ for Manatees
  • Radioactive Boar on the Rise in Germany

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Economy

For a Change, U.S. Debt Is Staying in the U.S. (jdargis)

Budget deficits have ballooned again, but the story is different this time. Americans are buying most of the new Treasuries being issued. Foreign governments, whose purchases were once critical, were net sellers of Treasury securities in the first half of 2010, according to figures released this week.

That buying has reduced the Treasury’s need to attract foreign capital and has helped to keep interest rates very low.

ShoreBank of Chicago, Seven Others Shuttered as 2010 Failures Climb to 118 (jdargis)

Regulators also closed four banks in California, two in Florida and one in Virginia. All eight closures cost the FDIC’s deposit-insurance fund $473.5 million, the agency said yesterday. This year’s bank failures will surpass last year’s total of 140, FDIC Chairman Sheila Bair said last month in a Bloomberg Television interview.

Treasury 10-Year Notes Gain for Fourth Week as Economic Recovery Falters (jdargis)

Yields on two-year notes dropped below 0.46 percent for the first time since the Treasury began issuing the securities on a regular basis in 1975. The U.S. will auction $102 billion of 2-, 5- and 7-year notes next week, the smallest monthly offering of that combination of securities since May 2009. The central bank plans to buy notes due from 2013 to 2014 on Aug. 24 and debt maturing from 2021 to 2040 on Aug. 26.

    Crash Course DVDThe Crash Course DVD: in-depth analysis on peak oil, debt, demographics, only $24.99 in our store (NTSC or PAL)

The Fannie And Freddie Effect Is Here Long Term (jdargis)

The seizure – euphemistically called “conservatorship” – has cost taxpayers some $150bn so far but independent forecasters put the final bill at around $380bn. More worryingly, nobody in Washington seems to know what to do with Fannie and Freddie. Wind them down? Recapitalise them and re-release them back into the wild of capital markets? Break them up?

Energy

Why is the U.S. Government Protecting BP? (hucklejohn)

The government knows that a BP bankruptcy would cause a giant financial meltdown that would probably make what happened in 2008 look tame. That is the reason I think the government is working so hard to protect BP. In June, the President said, “Untold damage is being done to the environment — damage that could last for decades.” I think the President got it right the first time.

Big Bets Laid Down on Pulling Oil Out of Rocks (SolidSwede)

New technology has enabled companies to extract gas from previously uneconomic shale plays, triggering a boom in production that has driven down prices in the giant U.S. energy market and triggering a spate of takeovers by oil majors eager to get in on the action.

The less publicized success story has been booming oil production from shale plays like the Bakken formation in North Dakota. In the course of three years, oil production in the state's Bakken formation has jumped more than 20 fold to 135,000 barrels per day in 2009 from recoverable reserves now estimated at nearly 4 billion barrels.

Environment

Looking for Trouble on ‘Highway’ for Manatees (jdargis)

Bumpy and Bama are manatees who live in Florida most of the year but come to Alabama in late summer for reasons unknown. When oil first entered Mobile Bay in June, researchers feared it would contaminate the manatee habitats. Though that has not come to pass, another danger is yet to come when the manatees return home in late fall, said Ruth Carmichael, who leads manatee research at the Dauphin Island Sea Lab in Dauphin Island, Ala. Researchers who model the spill’s progress expect subsurface oil to collect in the shipping channel, which the manatees use on their migration, Dr. Carmichael said.

Radioactive Boar on the Rise in Germany (Johan V.)

As Germany's wild boar population has skyrocketed in recent years, so too has the number of animals contaminated by radioactivity left over from the Chernobyl nuclear meltdown. Government payments compensating hunters for lost income due to radioactive boar have quadrupled since 2007.

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."

6 Comments

rjs's picture
rjs
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 445
Re: Daily Digest 8/21 - The Fate of U.S. Debt, 2010 Bank ...

U.S. Energy Information Administration (EIA) - Annual Energy Review - pdf & chart series

smirking pig's picture
smirking pig
Status: Bronze Member (Offline)
Joined: Sep 26 2009
Posts: 26
Re: Daily Digest 8/21 - The Fate of U.S. Debt, 2010 Bank ...

Tony Robbins Is Warning That An Economic Collapse Is Coming

 

http://theeconomiccollapseblog.com/archives/even-tony-robbins-is-warning-that-an-economic-collapse-is-coming

 

watch the 2 vid's

do you all see the next bubble

Full Moon's picture
Full Moon
Status: Diamond Member (Offline)
Joined: Oct 14 2008
Posts: 1258
Re: Daily Digest 8/21 - The Fate of U.S. Debt, 2010 Bank ...

Tony Robbins Is Warning That An Economic Collapse Is Coming

 

http://theeconomiccollapseblog.com/archives/even-tony-robbins-is-warning-that-an-economic-collapse-is-coming

 

watch the 2 vid's

do you all see the next bubble

 ------------------------------------------------------------------------------------------------------------------------------------------------------

  Quite the motivational speaker now isn't he ?       I  do not know enough about seeing the next  bubble and all , but  for my youngsters  I tell them to know the largest population is getting older . They have what money is left and can not do certain thing for themselves .  If they want to start a business it had better be in the service industry of something these folks are going to need .  The kids  may not get rich  but they will have jobs. 

  Our News papers are full of low end jobs  but  you actually would have to work to do them .   It must be easier to live off your folks and unemployment than it is to go to work .   We have raised up people that are too good for physical labor .    Cheap food + no physical labor   =  not a good ending .

 

FM

 oops I do not know how  I messed this up nor how to fix it .

Farmer Brown's picture
Farmer Brown
Status: Martenson Brigade Member (Offline)
Joined: Nov 23 2008
Posts: 1503
Mapping Tipping Points

Great piece:

http://www.zerohedge.com/article/guest-post-preserve-and-protect-mapping...

Guest Post: Preserve and Protect: Mapping The Tipping Points

Guest Post: Preserve and Protect: Mapping The Tipping PointsXX economic news has turned decidedly negative globally and a sense of ‘quiet before the storm’ permeates the financial headlines. Arcane subjects such as a Hindenburg Omen now make mainline news. The retail investor continues to flee the equity markets and in concert with the institutional players relentlessly pile into the perceived safety of yield instruments, though they are outrageously expensive by any proven measure. Like trying to buy a pump during a storm flood, people are apparently willing to pay any price. As a sailor, it feels like the ominous period where the crew is fastening down the hatches and preparing for the squall that is clearly on the horizon. Few crew mates are talking as everyone is checking preparations for any eventuality. Are you prepared? Apparent synthetic wealth has artificially and temporarily been created through the production of paper. Whether Federal Reserve IOU notes (the dollar) or guaranteed certificates of confiscation (treasury notes & bonds), it needs to never be forgotten that these are paper. It is not wealth. It is someone else’s obligation to deliver that wealth to the holder of the paper based on what that paper is felt to be worth when the obligation is required to be surrendered. It must never be forgotten that fiat paper is only a counter party obligation to deliver. Will they? Unfortunately, since fiat paper is no longer a store of value, it is recklessly being created to solve political problems. What you will inevitably receive will be only be a fraction of the value of what you originally surrendered." - Gordon T. Long

plato1965's picture
plato1965
Status: Platinum Member (Offline)
Joined: Feb 18 2009
Posts: 615
Peak oil alarm revealed by secret official talks
 

 Behind government dismissals of 'alarmist' fears there is growing concern over critical future energy supplies

 http://www.guardian.co.uk/business/2010/aug/22/peak-oil-department-energy-climate-change

   Speculation that government ministers are far more concerned about a future supply crunch than they have admitted has been fuelled by the revelation that they are canvassing views from industry and the scientific community about "peak oil".

The Department of Energy and Climate Change (DECC) is also refusing to hand over policy documents about "peak oil" – the point at which oil production reaches its maximum and then declines – under the Freedom of Information (FoI) Act, despite releasing others in which it admits "secrecy around the topic is probably not good".

Helix's picture
Helix
Status: Bronze Member (Offline)
Joined: Sep 20 2008
Posts: 79
Re: Daily Digest 8/21 - The Fate of U.S. Debt, 2010 Bank ...

Interesting comment.  This reminds me of an incident with my daughter when she was in high school.  My daughter was a low-average student and was not college material, but she was not bad with numbers.  I looked at her capabilities and it looked to me like bookkeeping and accounting were fields where she could function well and make a good living.

Much to my surprise, I found that accounting and bookeeping were not offerred at her high school.  And this was no podunk school system.  It was a high school with almost 2000 students in a school system purported to be among the best in the country.  When I asked about this incredible ommission from the curriculum, I was told that bookkeeping and accounting were not suitable preparatory courses for college.  When I asked about what the school was oferring students who would not be going to college, I was told that the school was striving to send 100% of its graduates to college!

No amount of swearing made the slightest difference in their attitude.  My daughter enrolled in an accounting course at the local community college.

 

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