Daily Digest

Daily Digest 8/31 - IMF Eliminates Borrowing Cap, Axa Holdings Of Goldman Sachs Halved, Banks Wearying Of Environmental Risks

Tuesday, August 31, 2010, 10:28 AM
  • IMF Eliminates Borrowing Cap
  • Hyperinflation Ends The Game - So It Is Unlikely
  • Was The Flash Crash Rigged?
  • Waste In Greek Government Spending: Paying Deceased Pensioners
  • Axa Holdings In Goldman Sachs Halved During Last Quarter
  • BP's Gulf Crude Oil Nearly 40% Methane - Will Huge Dead Zone Follow?
  • When Seafloor Meets Ocean, the Chemistry Is Amazing
  • Tests Find Sickened Family Has 50.3ppm Of Corexit’s 2-Butoxyethanol In Swimming Pool
  • Banks Grow Wary of Environmental Risks 

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Economy

IMF Eliminates Borrowing Cap (Claire H.)

The IMF as of today, has a limitless facility to bail out anyone in the world, without a maximum bound in how much is lendable. One wonders who would be stupid enough to take advantage of the gullibility of IMF's biggest backers (the US), to borrow an infinite amount of money for any reason whatsoever... And just what all this means for the imminent explosion of the amount of money in circulation...Not to mention the brand new Ben Bernanke smokescreen of having a new justification to print a few trillion dollars when Europe unexpectedly collapses yet again.

Hyperinflation Ends The Game - So It Is Unlikely (Erik T.)

This three-way conversation between “Blogger Extraordinaire” Mish Shedlock in the US and private investors Erik Townsend and Michael Hampton in Hong Kong cuts through the fog surrounding the deflation versus hyperinflation debate. Mish and Mike update their mostly accurate forecasts for 2010, and Erik T. chips in with some key demographic challenges facing the US.

Was The Flash Crash Rigged? (Deepak)

Hunsader has given federal regulators an intriguing analysis that suggests that such market manipulation preceded the May 6 Flash Crash and contributed to the violence of the selloff that saw the Dow Jones Industrial Average fall more than 700 points in about 15 minutes, its worse one-day plunge ever. The DJIA bounced up 360 points five minutes later. Some retail investors who had come back to the market after a hiatus of two years were frightened away again.

Waste In Greek Government Spending: Paying Deceased Pensioners (Johan V.)

On Wednesday, their efforts have uncovered a startling fact: the government has been paying dead people. The Greek government pays 500 pensioners over the age of 110. Apparently, 300 of them have already passed away. Some money deposited into these accounts were withdrawn while others remain untouched.

    Crash Course DVDOwn the Crash Course Special Edition Set with Presenter’s Pack (NTSC or PAL)

Axa Holdings In Goldman Sachs Halved During Last Quarter (Johan V.)

Axa's holdings in US Bancorp have also been cut, while the company has increased its stake in other financials such as Wells Fargo and Bank of America. It is understood that the majority of the equities managed by Axa comprise third-party money managed by Alliance Bernstein.

Environment

BP's Gulf Crude Oil Nearly 40% Methane - Will Huge Dead Zone Follow? (Andrew C.)

The reason is that all those methane hydrocarbons now in the water are food for microorganisms. In the expected feeding frenzy, those methane-eating organisms will deplete the oxygen and produce a dead zone. How big an oxygen-depleted dead zone depends on how fast the oxygen is depleted and if there is any fresh oxygen supply going into the Gulf currents.

When Seafloor Meets Ocean, the Chemistry Is Amazing (Andrew C.)

Until recently, scientists have largely overlooked seafloor methane and its potentially dramatic impacts. The problem is that methane commonly vents out of isolated cracks in the seafloor—some so small that they are easily missed by oceanic surveillance systems. Once out into the ocean, the methane usually is diluted rapidly by seawater, or it dissolves in seawater and is consumed by microorganisms that convert it metabolically into carbon dioxide. Unless you happen to be looking in the right place at the right time, you’ll miss the show.

But evidence has steadily accumulated that natural seepage of methane from the seafloor is a large, continuous, and ubiquitous phenomenon. When oceanographers happen upon these vents (often called “cold seeps”), the scene is often spectacular.

Tests Find Sickened Family Has 50.3ppm Of Corexit’s 2-Butoxyethanol In Swimming Pool (Jamie D.)

“Naman [said] our pool water sample we sent him contained 50.3 ppm [parts per million] 2-butoxyethanol marker for Corexit,” according to Mrs. Schebler. Tests for arsenic came back at less than .02 ppm.

A July letter from four top scientists noted, “Corexit 9527A contains 2-BTE (2-butoxyethanol), a toxic solvent that ruptures red blood cells, causing hemolysis (bleeding) and liver and kidney damage.”

Banks Grow Wary of Environmental Risks (SolidSwede)

In the most recent example, the banking giant Wells Fargo noted last month what it called “considerable attention and controversy” surrounding mountaintop removal mining, and said that its involvement with companies engaged in it was “limited and declining.”

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."

13 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
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Posts: 4236
Re: Daily Digest 8/31 - IMF Eliminates Borrowing Cap, Axa ...

"Aug. 31 (Bloomberg) -- Titan Capital Group LLC, whose flagship volatility fund rose 21.6 percent as stocks tumbled in May, has raised bets on extreme market moves because investors’ views on the economic outlook have polarized.

The New York-based hedge fund, which manages about $400 million, has added “a lot more” cheap, out-of-the-money options, betting the market is underestimating the likelihood of a crash, founder Russell Abrams said in a phone interview. Treasuries, German government bonds and Japan’s yen are pricing in economic outcomes that are bleaker than the stock market expects, said the former co-head of U.S. equity derivative trading and convertible arbitrage at Merrill Lynch & Co.

“They are pointing to a much more dangerous environment than what equity investors believe,” he said. “Either you’re going to see the bond market make the big move or the equity market make the big move; the current situation is not in equilibrium.”

Nassim Nicholas Taleb, whose book “The Black Swan” is about how unforeseen events can roil markets, said Aug. 11 he is “betting on the collapse of government bonds” and that investors should avoid stocks."

"Aug. 31 (Bloomberg) -- U.S. auto sales in August probably were the slowest for the month in 28 years as model-year closeout deals failed to entice consumers concerned the economy is worsening and they may lose their jobs.

Industrywide deliveries, to be released tomorrow, may have reached an annualized rate of 11.6 million vehicles this month, the average of eight analysts’ estimates compiled by Bloomberg. That would be the slowest August since 1982, according to researcher Ward’s AutoInfoBank. The rate would be 18 percent below last year’s 14.2 million pace, when the U.S. government’s “cash for clunkers” incentive program boosted sales.

“Home sales are way down, the stock market is way down, the unemployment report is very disappointing and consumer confidence is sputtering,” Jesse Toprak, vice president of industry trends at TrueCar.com, said in an interview. “People just don’t want to make big-ticket purchases because they’re uncertain about their jobs and the value of their homes.”"

"The amount of money the West Chester Area School District must contribute to the state's Public School Employees Retirement System will jump from $2.6 million in the 2011-12 school year to $14 million in the 2013-14 school year, according to the district's current projections.

This is a dramatic increase, considering the district's 2010-11 budget was $203 million and 60 to 70 percent of the district's expenses are dedicated to salaries and benefits — a percentage that, because of contractual obligations, is difficult to reduce or change.

Schools across the state are facing similar increases in their retirement system contributions, and their budgets are similarly constrained."

  • Other news and headlines:

Japan renews QE as recovery falters (By Ambrose Evans-Pritchard)

China's rising bank debt could leave nation exposed (By Ambrose Evans-Pritchard)

Pension fund suffers loss of ¥3.59 trillion (Japan)

Gold Rallying to $1500 for Analysts as Soros's Bubble Inflates

IMF Changes, Expands Crisis-Prevention Credit Lines ("Talks are ongoing with member countries to raise the IMF lending capacity to $1 trillion")

UC retirement funds face a shortfall of more than $20 billion, report says

Anglo losses reach €8.2 billion (Ireland)

'Zombie' Hotels Arise in Ireland as Recession Empties Rooms

New Zealand State Pays $1.1 Billion as South Canterbury Fails

One in three FTSE 100 companies unable to meet pension deficits (UK)

Mexico Jan-July Public Sector Deficit Up To MXN151.62 Billion

Harrisburg, Pennsylvania, Plans to Skip $2.2 Million Payment Due Sept. 1

JAL to retire 103 aircraft, cut 16000 jobs in financial turnaround

Miami to Consider Cutting Salaries After Budget Gap Leads to Lower Ratings

Sacramento County plans to cut jobs, shift funds to fix deficit

Homelessness Up 50% In New York City

Housing Supply and Demand Won't Balance until 2012: Moody's

Analysis: Bears bet time is running out for China to change ("65.4 million, $28.7 billion and $2.45 trillion")

Lehman Derivatives Records a ‘Mess,’ Barclays Executive Says ("had “absolutely no idea” if it had sold $2 billion more options than it had bought, or whether it owned $4 billion more than it had sold.")

jhart5's picture
jhart5
Status: Bronze Member (Offline)
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Posts: 89
Re: Daily Digest 8/31 - Was the Flash Crash Rigged

Re: Was the Flash Crash Rigged?

Nanex LCC - Research, Analysis and Charting by Eric Scott Hunsader and Jeffrey Donovan

In our original Flash Crash Analysis report, we dedicated a section to an observed phenomena we termed "Quote Stuffing", in which bursts of quotes (at very high rates) with extremely unusual characteristics were observed.

http://www.nanex.net/20100506/FlashCrashAnalysis_Intro.html

As we continue to monitor the markets for evidence of Quote Stuffing and Strange Sequences (Crop Circles), we find that there are dozens if not hundreds of examples to choose from on any given day. As such, this page will be updated often with charts demonstrating this activity.

http://www.nanex.net/FlashCrash/CCircleDay.html

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alcatwize
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Ron Paul Calls for Audit of US Gold Reserves August 24, 2020 ki

If the gold is really gone (which is probably true) then there will never be an audit.  So if there is no audit allowed, then u can be sure there is no gold.

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

Ron Paul Calls for Audit of US Gold Reserves August 24, 2020 kitconews.com Texas (Kitco News) --

U.S. Rep. Ron Paul , R-Tex., plans to introduce a new bill next year that will allow for an audit of US gold reserves, he told Kitco News in an exclusive interview. Paul dropped the news in the interview, indicating that the bill still does not have an official name yet but will be unveiled at the start of the new U.S. Congress. "If there was no question about the gold being there, you think they would be anxious to prove gold is there," he said of the Federal Reserve. This is not the first time the congressman has made his pitch. "In the early 1980s when I was on the gold commission, I asked them to recommend to the Congress that they audit the gold reserves -- we had 17 members of the commission and 15 voted not to the audit," said Paul. "I think there was only one decent audit done 50 years ago," he said. Though Paul did not say whether there is any truth to claims that there is no gold in Fort Knox or the New York Federal Reserve, he said, "I think it is a possibility." "If we ever get around to deciding we should use gold in relationship to our currency we ought to know how much is there," said Paul. "Our Federal Reserve admits to nothing and they should prove all the gold is there. There is a reason to be suspicious and even if you are not suspicious why wouldn't you have an audit?" he said.

Doug's picture
Doug
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Posts: 3200
Re: Daily Digest 8/31 - IMF Eliminates Borrowing Cap, Axa ...

I highly recommend the podcast with Mish, Erik T. and Michael Hampton.  If you're on the fence about hyperinflation vs. depression, these guys offer some well informed opinions to think about.

Hyperinflation Ends The Game - So It Is Unlikely (Erik T.)

Doug

LogansRun's picture
LogansRun
Status: Diamond Member (Offline)
Joined: Mar 18 2009
Posts: 1444
Re: Daily Digest 8/31 - IMF Eliminates Borrowing Cap, Axa ...

"Hyperinflation Wins the Game" is exactly why I switched from the HI crowd to the deflationary crowd.  Being as I believe there's a Central Banking Conspiracy at work in regards to this crisis, the Bankers would lose total control of the situation AND lose their control over us!  In deflation, they get to buy everything back at penny's on the dollar!  It's really a perfect scheme! 

But in the end, they'll create havoc in the Sovereign Debt arena to help create their ONE WORLD CURRENCY.  And as has been stated many times....You CANNOT have a One World Currency without a One World Police Force! 

I know, I know.....CT.  It really does amaze me every day how so many smart people can be so absolutely stupid about this issue.

jumblies's picture
jumblies
Status: Silver Member (Offline)
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Posts: 244
Re: Ron Paul Calls for Audit of US Gold Reserves August ...

Clearly I'm being naive...why would a song 'n dance of an audit be needed? Surely such a vital piece of information should be clearly recorded on a spreadsheet. Somewhere. I mean, someone should know, right? Do we really need a long, arduous process only to pull up file like "us_gold_reserves.xls"?

 

LogansRun's picture
LogansRun
Status: Diamond Member (Offline)
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Posts: 1444
Re: Ron Paul Calls for Audit of US Gold Reserves August ...

YES, you're being EXTREMELY naive.  I'm also not going to take the time to enlighten you.  Google...Gold Fort Knox missing.  Or anything of the sort.  After doing so, let us know your thoughts.

Cheers.

jumblies wrote:

Clearly I'm being naive...why would a song 'n dance of an audit be needed? Surely such a vital piece of information should be clearly recorded on a spreadsheet. Somewhere. I mean, someone should know, right? Do we really need a long, arduous process only to pull up file like "us_gold_reserves.xls"?

 

SagerXX's picture
SagerXX
Status: Diamond Member (Offline)
Joined: Feb 11 2009
Posts: 2252
Re: Ron Paul Calls for Audit of US Gold Reserves August ...
LogansRun wrote:

YES, you're being EXTREMELY naive.  I'm also not going to take the time to enlighten you.  Google...Gold Fort Knox missing.  Or anything of the sort.  After doing so, let us know your thoughts.

Cheers.

Ah, there's nothing like gentle, thoughtful commentary to help newcomers feel welcome.

ditchner's picture
ditchner
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Posts: 14
Re: Daily Digest 8/31 - IMF Eliminates Borrowing Cap, Axa ...

http://bit.ly/couWaV

 

Howard Davidowitz, "The consumer is totally wrecked"  Video (Compelling)

LogansRun's picture
LogansRun
Status: Diamond Member (Offline)
Joined: Mar 18 2009
Posts: 1444
Re: Ron Paul Calls for Audit of US Gold Reserves August ...

Yeah, sorry!  I was short on time as well as patience.  This is one of those issues (one of many) that get my dander up something fierce.  Not his/her fault though.  

I apologize.

SagerXX wrote:
LogansRun wrote:

YES, you're being EXTREMELY naive.  I'm also not going to take the time to enlighten you.  Google...Gold Fort Knox missing.  Or anything of the sort.  After doing so, let us know your thoughts.

Cheers.

Ah, there's nothing like gentle, thoughtful commentary to help newcomers feel welcome.

Zapata's picture
Zapata
Status: Bronze Member (Offline)
Joined: Aug 28 2010
Posts: 28
Re: Daily Digest 8/31 - When Seafloor Meets Ocean, the Chemistry

I learned a lot about this in a science fiction novel called The Swarm.

Fun, informative read, if that's your thing.

Doug's picture
Doug
Status: Diamond Member (Offline)
Joined: Oct 1 2008
Posts: 3200
Re: Daily Digest 8/31 - IMF Eliminates Borrowing Cap, Axa ...
ditchner wrote:

http://bit.ly/couWaV

 

Howard Davidowitz, "The consumer is totally wrecked"  Video (Compelling)

Funny, but he needs to come out of his shell.LaughingLaughing

Doug

Full Moon's picture
Full Moon
Status: Diamond Member (Offline)
Joined: Oct 14 2008
Posts: 1258
Re: Daily Digest 8/31 - IMF Eliminates Borrowing Cap, Axa ...

   With it ( collapse ) being on every news chanel ,radio talk show ,and in bottom of everyones gut feeling  this is sure to pick up speed .    No more sitting on the fence .

  FM

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