Daily Digest

Daily Digest 9/2 - Europe's Shaky Foundations, Banks Push Greek Bailout Plan, Gold Vs. Oil

Friday, September 2, 2011, 9:46 AM
  • Europe's Shaky Foundations
  • In Japan, A Tenuous Vow To Cut
  • Banks Push Greek Bailout Plan
  • Some Observations On Bob Pisani's Visit To GLD's Vault
  • China's Wen says fighting inflation still top priority
  • First Look Inside a Libyan Surveillance Center
  • Asking The Right And Wrong Questions
  • Gold Vs. Oil

Follow our steps to prepare for a world after peak oil, such as how to store & filter water

Economy

Europe's Shaky Foundations (jdargis)

Throughout history, confederations have never really worked, because the question of sovereignty (and thus of power and legitimacy) remains unresolved. The United States is a case in point. After winning independence, the American colonies united loosely under the Articles of Confederation. But that arrangement failed financially and economically, and the US soon moved towards a full federation.

Today, Europe – or, more precisely, the eurozone – faces an almost identical situation, except that the historical conditions for further integration are much more complex and difficult than they were in post-independence America.

In Japan, A Tenuous Vow To Cut (jdargis)

“We will no longer spend wastefully as if we are pouring buckets of water into a sieve,” Mr. Noda declared in a speech on Monday just before Japan’s ruling Democratic Party elevated him to the top job.

Banks Push Greek Bailout Plan (jdargis)

Holders of the Greek bonds would get much better value than they could in the open market, while Greece would still owe a lot of money. What’s more, Greece would be surrendering a lot of its negotiating clout if, in the future, it needed to go back to the bailout bargaining table.

Some Observations On Bob Pisani's Visit To GLD's Vault (Johnny Oxygen)

Earlier today, we were delighted to see that after years of ridicule and provocations, the SPDR GLD ETF finally cracked and decided to do a wholesale PR campaign to comfort the investing public it actually does own its gold, by inviting none other than Bob Pisani in its secret warehouse which allegedly contains 40 million ounces of gold...

What is amusing is that it is sure to set off another set of conspiracy theories. Here's the reason: amusingly the very gold bar that Pisani demonstrates so eagerly for the camera, Rand Refineries ZJ6752, is somehow, at last check, missing from the full barlist as posted daily by the GLD.

China's Wen says fighting inflation still top priority (Johnny Oxygen)

Stabilising prices remains the top priority for the Chinese government, and Beijing will maintain its current economic policies, Premier Wen Jiabao said in comments published on Wednesday.

The slowdown in the economy is within expectations and the government will pay more attention to controlling price rises, Wen said in comments seen on the central government's Internet portal, www.gov.cn.

First Look Inside a Libyan Surveillance Center (jdargis)

This recently abandoned room in a security unit in Tripoli, Libya, lined with posters and English-language training manuals, provides clear new evidence of foreign companies’ cooperation in the repression of Libyans under Col. Moammar Gadhafi’s rule.

Asking The Right And Wrong Questions (jdargis)

To this point, we’ve run a number of experiments. In one study, we asked people the same question that financial advisors ask: How much of your final salary will you need in retirement? The common answer was 75 percent. But when we asked how they came up with this figure, the most common refrain turned out to be that that’s what they thought they should answer. And when we probed further and asked where they got this advice, we found that most people heard this from the financial industry. Sort of like two months salary for an engagement ring and one-third of your income for housing, 75 percent was the rule of thumb that they had heard from financial advisors. You see the circularity and the inanity: Financial advisors are asking a question that their customers rely on them for the answer. So what’s the point of the question?!

Gold Vs. Oil (Michael S.)

Assume for a moment that an ounce of gold is exactly $1000 and a barrel of oil is $100. Lets look at how many barrels of oil an ounce of gold would buy. You can just as easily divide it the other way but the numbers come out messier.

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

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4239
Hiring grinds to halt in August, U.S. data show

 

Payroll counts in June and July were revised lower by a cumulative 58,000. Payrolls rose a revised 20,000 in June and by 85,000 in July.
The average workweek for August edged down by six minutes to 34.2 hours.
Average hourly earnings on the month fell 0.1% to $23.09. Economists had been expecting a 0.1% gain. Earnings are up 1.9% in the past year.
The grim report could serve as a catalyst for further Federal Reserve easing.
Fed Chairman Ben Bernanke has said the central bank will meet for two days later this month to explore whether more easing measures are needed.
 

.....................1A) Employment in U.S. Stagnated in August; Jobless Rate at 9.1%

  • Other news, headlines and opinion:
 
 
 

 

ECB steps up pressure on Italy as debt worries grow

EU-IMF audit suspended as Greece admits budget overshoot

Greek stocks slump; Athens budget talks suspended

China’s local governments admit being deep in hole

Japan to downgrade quarterly growth data: Barclays

Greek budget official resigns after bungled debt warning ("after a furore over a report warning that the country's massive debt was "out of control" just as officials held critical talks with creditors.")

Pennsylvania Capital Faces Limbo of Missed Payroll, Bond Default, Takeover

Germans oppose bailout boost, critical of Merkel: poll

Greece to miss 2011 deficit target, privatization goals in doubt

Santa Ana Faces Massive Budget Shortfall

Pittsburgh's pension bailout plan goes to state

Economists Call on ECB to Cut Rates

SNB May Buy Euros to Stem Franc’s Gains

Failure of Biggest Intervention in Seven Years Pressures BOJ: Japan Credit

Fed asks BofA to list contingency plan: report

'Never worked' households at record high (UK)

Traders May Face EU Position Limits on Naked Sovereign Swaps

Germany's largest "bad bank" to swap Greek bonds

Sovereign Bond Risk Climbs to Record in Europe After Jobs Data

Banks Brace For New Wave Of Mortgage Lawsuits, U.S. May Seek Up To $30 Billion

$23 Billion in California Transportation Projects Up in the Air

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4239
National debt now at almost $14.7 trillion

 

 

Treasury Direct link

The Daily History of the Debt Results

Historical returns from 08/30/2011 through 09/01/2011

The data for the total public debt outstanding is published each business day. If there is no debt value for the date(s) you requested, the value for the preceding business day will be displayed.

( Debt Held by the Public vs. Intragovernmental Holdings )

 

Date Debt Held by the Public Intragovernmental Holdings Total Public Debt Outstanding
08/30/2011 9,990,126,772,846.86 4,632,518,164,730.04 14,622,644,937,576.90
08/31/2011 10,024,253,354,407.07 4,660,039,640,336.86 14,684,292,994,743.93
09/01/2011 10,058,384,678,037.32 4,639,030,111,526.08 14,697,414,789,563.40

 

 

National Debt Clock link

 

 

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
US to Sue Banks Over Mortgages

http://www.informationclearinghouse.info/article29013.htm

US to Sue Banks Over Mortgages: Report

By Justin Sullivan

September 02, 2011 "AFP" - -  The United States plans to file lawsuits against more than a dozen big banks over mortgage-backed securities seen to have fueled the 2008 economic crisis, the New York Times said.

The lawsuits are set to be filed Friday or early next week against Bank of America, JP Morgan Chase, Goldman Sachs, Deutsche Bank and others, the newspaper reported, citing three unnamed individuals briefed on the matter.

The lawsuits will accuse the banks of bundling toxic mortgages -- held by borrowers with inflated or falsified incomes -- as securities and marketing them to investors.

When the borrowers failed to pay their bills, the securities lost value, contributing to the loss of $30 billion by government-backed mortgage firms Fannie Mae and Freddie Mac, losses borne mostly by taxpayers, the Times said.

The two firms, along with two other smaller agencies, currently insure or guarantee 90 percent of all new US home loans.

NZSailor's picture
NZSailor
Status: Bronze Member (Offline)
Joined: Oct 4 2008
Posts: 62
US to Sue Banks Over Mortgages.... and then...

So what worries me is that the the banks will huddle and come up with a figure to settle the lawsuit.  The amount of the settlment will be a fraction of the amount of real damage to the economy they caused (and profits the banks made). But it will sound like a big number to the sheeple and will be a campaining point for the politicians to tell the people how "they brought wall street under control" in the next election.  The settlement money will not go to the people who are paying the costs of the fraud but will bring in huge legal fees for the legal community involved. And as part of the settlment the banks will be granted immunity from any further lawsuits.  At which point it is back to business as usual.

Sorry, feeling a bit cynical tonight....

Chip

Travlin's picture
Travlin
Status: Diamond Member (Offline)
Joined: Apr 15 2010
Posts: 1322
NZSailor wrote: So what
NZSailor wrote:

So what worries me is that the the banks will huddle and come up with a figure to settle the lawsuit.  The amount of the settlment will be a fraction of the amount of real damage to the economy they caused (and profits the banks made). But it will sound like a big number to the sheeple and will be a campaining point for the politicians to tell the people how "they brought wall street under control" in the next election.  The settlement money will not go to the people who are paying the costs of the fraud but will bring in huge legal fees for the legal community involved. And as part of the settlment the banks will be granted immunity from any further lawsuits.  At which point it is back to business as usual.

Sorry, feeling a bit cynical tonight....

Chip

No need to apologize for being an accurate observer of the political scene and how it works.

Travlin

SailAway's picture
SailAway
Status: Gold Member (Offline)
Joined: Aug 11 2010
Posts: 404
Re: US to Sue Banks Over Mortgages

No matter how much the big banks will have to pay as a result of this lawsuit, we the tax payers will return the money and more next time we'll bail them out... Political theatre one more time.

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