Daily Digest

Daily Digest 8/29 - Food And Fuel Shortages Paralyze Tripoli, Stock Markets Rise After Bernanke Speech, NY, VT Deal With Floods

Monday, August 29, 2011, 10:49 AM
  • A Small Country — Finland — Casts Doubt on Aid for Greece
  • Fuel, food shortages paralyze Tripoli
  • Doors open on terrible secrets of a crumbling police state in Tripoli
  • Bank of England Urged To Restart Quantitative Easing Before End Of Year
  • Pavlov Rang The Bell
  • Stock Markets Rise After Fed Chief's Speech
  • Hurricane Irene 2011: Upstate New York, Vermont Face Major Flooding
  • Film Series: Introduction And Water Security
  • From Coastline to Mountains, Water Fast and Lethal

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

Economy

A Small Country — Finland — Casts Doubt on Aid for Greece (In Calgary)

That agreement is crucial to restoring confidence among bondholders that Europe can find a lasting solution to its sovereign debt troubles. But the continued squabbling in Europe has alarmed policy makers around the world, and the dispute over collateral provides one more measure of market uncertainty this week as the summer lull ends and trading regains a more normal volume.

Fuel, food shortages paralyze Tripoli (In Calgary)

The rebels, who now control most of Libya, said they are preparing for an assault on Mr. Gadhafi's hometown of Sirte, his last major bastion, if negotiations with tribal leaders there fail. Rebels deployed in Bin Jawad, a town about 150 kilometers east of Sirte, said they are waiting for NATO to bomb Scud missile launchers and possible weapons warehouses there.

Doors open on terrible secrets of a crumbling police state in Tripoli (In Calgary)

Somebody has tried to remove all evidence of what happened in this drab compound of offices, interrogation rooms and subterranean prisons that has been bombed several times leaving smouldering fires. The computers have been unscrewed and their hard disks systematically ripped out; huge automated filing systems, once capable of holding millions of pages of records, loom empty in the darkness.

Bank of England Urged To Restart Quantitative Easing Before End Of Year (In Calgary)

Bank of England policymakers could be forced to unleash a fresh wave of quantitative easing (QE) before the end of the year as Britain's fragile economy is battered by the eurozone crisis and the US slowdown, experts warn.

Pavlov Rang The Bell (Ilene)

Bernanke acknowledged that while the housing market is bad, and the current rate of unemployment is unacceptably bad, the economy is not in terrible shape and can grow normally again. However, the U.S. government and European governments are going to need to get actively involved. For as Bernanke put it, “most of the economic policies that support robust economic growth in the long run are outside the province of the central bank.”

Stock Markets Rise After Fed Chief's Speech (jdargis)

"People came to realize that Bernanke is very confident about the economy," said Jackson Wong, vice president at Tanrich Securities in Hong Kong. "People were reluctant to get into the market. Now they are jumping back in."

That boosted Wall Street on Friday, and the momentum was passed on to Asia and Europe on Monday.

Environment

Hurricane Irene 2011: Upstate New York, Vermont Face Major Flooding (jdargis)

In Windham, for instance, news sources and images linked on the site have depicted a scene of "total destruction," with most houses in the low-lying parts of town covered to their roofs in water. The town has been "wiped out," in the words of Windham Fire Chief Michael Scarey, according to the Mid Hudson News.

Commenters on the site have described a rapidly deteriorating situation, with the local emergency services reportedly being completely overwhelmed by the number of people in need.

Film Series: Introduction And Water Security (Guy M.)

Word-light essays with embedded video clips will be posted every couple days until we cover the essential elements. We will return to our usual programming in a couple weeks.

From Coastline to Mountains, Water Fast and Lethal (jdargis)

Small towns across the Catskills, including Windham, Margaretville, Tannersville, Prattsville and many others suffered devastating floods with many downtowns underwater.

“We’ve been crushed up here,” said Shaun S. Groden, the administrator for Greene County, which includes some of the flooded towns. “We have major flash floods. We have bridges that have been blown out. We have people stranded, people who have gone up to the second floor of their homes.”

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."

4 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4145
saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4145
Irene likely to lead to higher insurance premiums

 

"The stocks of major insurers shot up on Monday as investors celebrated Irene's less-than-expected damage. The storm didn't even cause most analysts to adjust their profit estimates for insurers.

In part, that's because insurance companies have been raising premiums this year, especially for customers in high-risk areas. Homeowner and auto policies cost 5 to 10 percent more than they did a year ago, according to research by Gregory Locraft, an industry analyst with Morgan Stanley.

The damage from Irene and other disasters means that property insurance premiums will likely rise across the board into 2012, Locraft said."

"A year after most Georgia insurers increased homeowners premiums by 9 to 23 percent, a new wave of increase requests is pending.
The Atlanta Journal-Constitution reports that State Farm, Georgia's largest writer of homeowners policies, is seeking a 7 percent increase for next year. That would be on top of increases of 20 percent since the start of 2010, state officials said.
Travelers Group, the state's third-largest homeowners insurer, has filed plans for an increase of about 18 percent for most of the companies in its groups after enacting a 10 percent increase at the end of 2010. Auto Owners Group wants a 22 percent jump.
Steve Manders, director of insurance product review at the Georgia Department of Insurance, said a series of storms in 2008 and 2009 resulted in companies paying out a large number of claims.
"Most of it is weather-driven," he said."

 

bogwood's picture
bogwood
Status: Member (Offline)
Joined: Jun 13 2008
Posts: 13
Idol thoughts

 Putting together Gov. Perry's remarks and numerous blogs decrying the centrally planned US economy: should it be Chairman Mao Bernanke, or Chairman Mao-Mao Bernanke.  

Could there be a table comparing the relatively robust response to the hurricane, to the lack of response to the economic crisis.  Reward the best predictions.   Put those who missed predictions in charge.   Mandatory evacuation of low-lying areas. Leave your deposits in the TBTF banks.   Shoot looters on sight.  No one indicted.  etc, etc...

Doug's picture
Doug
Status: Diamond Member (Offline)
Joined: Oct 1 2008
Posts: 3158
Bill Gross changes tune

http://www.bloomberg.com/news/2011-08-30/treasuries-rise-on-speculation-u-s-home-prices-slid-in-june.html

Quote:

Gross on Treasuries

Pimco’s Gross said he wishes he had invested in more U.S. government debt earlier this year, the Financial Times reportedyesterday, citing an interview last week.

Treasuries have returned almost 7 percent since February, when Gross eliminated the Total Return Fund’s holding of U.S government securities. He boosted Treasuries to 10 percent of assets in July from 8 percent in June.

“It was my/our mistake in thinking that the U.S. economycan chug along at 2 percent real growth rates,” the FT cited Gross, based in Newport Beach, California, as saying. “The U.S. and developed economies are near the recessionary dividing point,” said Gross, echoing comments made in interviews with Bloomberg Television earlier this month.

The $245 billion Pimco Total Return Fund (PTTRX) has lost 1.04 percent in the past month, according to data compiled by Bloomberg. It’s up 3.2 percent this year, trailing almost 70 percent of its peers, Bloomberg data show.

‘Stall Speed’

“We’re not looking at a recession yet, but we’re at a tipping point,” Gross said on Bloomberg TV’s “Street Smart”with Carol Massar and Matt Miller on Aug. 2. “We’re at what we call a stall speed in which corporate profits don’t grow, jobs aren’t created.”

Gross reiterated in commentary published today on Pimco’s website that the firm favors investing in Australia, Mexico and Brazil, along with non-dollar currencies that have strong ties to Asia. Global equities are also attractive, he wrote.

The S&P/Case-Shiller index of property values in 20 cities fell 4.5 percent from June 2010, after dropping 4.6 percent in the 12 months ended in May, the group said today in New York. The median forecast of 31 economists surveyed by Bloomberg News projected a 4.6 percent drop.

U.S. bonds trimmed monthly gains after Bernanke sought in his address on Aug. 26 in Jackson Hole, Wyoming, to reassure investors that economic growth is safe in the long run. While he said the Fed has tools to aid the recovery if needed, he stopped short of indicating that the central bank will undertake a third round of bond purchases.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments