Daily Digest

Daily Digest 9/29 - SEC Proposes Changes In Market Halts, Euro Bailout Fund Clears Hurdle, Rare Earths Fall On Toyota Research

Thursday, September 29, 2011, 10:46 AM
  • A Representative Republic? That's So Last Century
  • SEC Proposes Changes In Market Halts
  • Fisher Says Central Bank Is Under Attack From Paul, Frank
  • Why #occupywallstreet Isn't Working
  • Expanded Euro Bailout Fund Clears Hurdle
  • It's a Bird! It's a Plane! It's… A Hero of the Bulgarian Revolution?
  • Seton Hall to Offer Steep Tuition Discounts
  • Rare Earths Fall as Toyota Develops Alternatives

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Economy

A Representative Republic? That's So Last Century (June C.)

Should such an act be contemplated, say much less recommended or acted upon, we no longer live in a Representative Republic and the remedies called for in The Declaration of Independence are the only ones remaining for any and all who intend to be a free people living in a nation that operates on the principles of a Representative Republic.

SEC Proposes Changes In Market Halts (Johnny Oxygen)

Federal regulators are considering changing the rules for when a dramatic shift in the stock market's value triggers exchanges to cut off trading. The Securities and Exchange Commission put proposed changes in so-called circuit breakers out for public comment Tuesday. Those are measures that automatically halt trading if the market falls by certain percentages. The SEC wants smaller market declines to trigger halts, but it also wants to shorten the stoppages.

They now stop trading if the Dow Jones industrial average tumbles 10 percent, 20 percent or 30 percent. The new triggers would be drops of 7 percent, 13 percent or 20 percent in the Standard & Poor's 500-stock index. The halts would be shortened to 15 minutes from the current 30 minutes, hour or two hours. ...The SEC also has proposed establishing so-called "limit up-limit down" rules for individual stocks that would bar any trades outside specified price boundaries. Those restrictions limit how much a stock's price can rise or fall in a given day.

Fisher Says Central Bank Is Under Attack From Paul, Frank (Johnny Oxygen)

Federal Reserve Bank of Dallas President Richard Fisher said the central bank's independence is under attack from both ends of the political spectrum in Congress, and he singled out two of the critics by name.

"We are being attacked from the right and from the left, and I don't see much difference between a certain congressman from Texas named Ron Paul and a certain congressman from Massachusetts named Barney Frank," Fisher said in response to audience questions after a speech in Dallas. Paul is a Republican and Frank is a Democrat.

Why #occupywallstreet Isn't Working (June C.)

Occupy Wall Street's lack of focus is embodied by this Adbusters post titled, "Hey President Obama, get ready for our one demand!" Here's the opening sentence: "On Saturday thousands of us will occupy Wall Street. We will wave our signs, unfurl our banners, beat our drums, chant our slogans…and then we'll get down to business and hold several people's assemblies to decide what our 'one demand' will be." First make noise, then decide what the noise is all about?

Expanded Euro Bailout Fund Clears Hurdle (jdargis)

The laborious approval process, which can be held up by objections from any one of the countries in the euro zone, has highlighted deep flaws in alliance’s decision making. Every major initiative must traverse an obstacle course, and each hurdle can jostle financial markets anew.

On Wednesday, major stock market indexes in Europe fell after three consecutive sessions of gains.

It's a Bird! It's a Plane! It's… A Hero of the Bulgarian Revolution? (jdargis)

The Berlin Wall fell more than 20 years ago, but Bulgaria has had trouble letting go. Defiling statues commemorating the 1944 Soviet "liberation" of Bulgaria is part of an increasingly bizarre effort to define communism's legacy.

Ex-communists—rebranded as socialists—are still a force here. Until 2009, when they lost elections amid corruption allegations and economic failings, the Bulgarian Socialist Party was politically dominant. But as the EU's poorest country undergoes an austerity program to boost investor confidence, some are nostalgic for the more certain days of communism.

Seton Hall to Offer Steep Tuition Discounts (jdargis)

To qualify for the discount, which would equal about two-thirds of this year’s $31,440 tuition (room, board and other fees add about $13,000 to the total annual bill), students must graduate in the top 10 percent of their high school classes and have a combined score of at least 1,200 on their math and reading SATs — but no less than 550 on either — or an ACT score of 27.

Rare Earths Fall as Toyota Develops Alternatives (pinecarr)

Makers of electric cars, wind turbines and oil-refining catalysts have sought to reduce use of the metals after China, which supplies more than 90 percent of the market, said in July 2010 that it would cut exports and clamp down on the industry. That boosted prices, encouraging mining companies to develop new prospects and buyers to find alternatives.

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."

10 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
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Posts: 4148
Italy 10-Year Yield Hits New Euro Era High at Auction

1) Italy Sells $10.77 Billion in Bonds as Borrowing Costs Rise

"Italy sold 7.9 billion euros ($10.77 billion) in bonds, less than the maximum target, as borrowing costs rose amid contagion from Europe’s debt crisis.

The Rome-based Treasury sold 3.14 billion euros of bonds due in 2014 to yield 4.68 percent, compared with a yield of 3.87 percent at the last auction on Aug. 30. Demand was 1.36 times the amount sold, compared with 1.32 times at the last sale. Also sold were 2.47 billion euros of 2022 bonds to yield 5.86 percent, compared with 5.22 percent on Aug. 30."

.................1A) Italy 10-Year Yield Hits New Euro Era High at Auction
 

 

...................1B) Italy public deficit climbs to 3.2%

Other news, headlines and opinion:

 

 

  1. Spain, Italy extend short selling ban on financial stocks
  2. Tepco faces $110 bln hole in finances -Nikkei
  3. IPOs Postponed at Record Pace Globally
  4. Merkel says Greek bailout terms may be changed
  5. E&Y Says Greek Default Seems Unavoidable; Sees Risk of Recession
  6. LBO-Burdened Firms Face 200 Billion-Euro Debt Bill, Fitch Says
  7. Detroit prison to close, 2,000 face layoffs to fill state budget gap
  8. Federal retirement plans almost as costly as Social Security
  9. Portugal PM says country vulnerable if euro zone default
  10. Calpers Investment Chief Sweats 7.75% Return
  11. Strapped states crave bigger online tax bite
  12. India’s Food Inflation Accelerates, Maintaining Pressure on Interest Rates

 

 

frobn's picture
frobn
Status: Silver Member (Offline)
Joined: Nov 28 2010
Posts: 184
Wall Street Protest

Mother Jone's take: "Why #occupywallstreet Isn't Working"

[quote]...as it enters its second week, the campaign's presence in the streets has dropped to just a few hundred supporters and its goal of kickstarting a popular movement feels a long way off.[/quote]

Zerohedge's take: Wall Street Protest Growing
[quote]Major Unions Join Wall Street Protest

The Teamsters Union and New York Transit Workers Union have thrown their support behind the Wall Street protests.[/quote]
[quote]True Conservatives Support Protest

This may seem at first glance like a liberal cause, but as I've previously noted, that is a false dichotomy, and true conservatives support it:[/quote]
[quote]Protests Spreading World-Wide

The protests are spreading world-wide. There are now purportedly 80+ copycat protests planned world-wide, including London, Chicago, Los Angeles, Boston and Las Vegas. [/quote]



 

SingleSpeak's picture
SingleSpeak
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Posts: 503
Calpers Investment Chief Sweats 7.75% Return

 

The only way they will get 7.75% will be by making the taxpayers come up with the difference, and I doubt that they will have enough to spare after paying for food. Time to adjust the expectations to something real. Maybe 3% if you're lucky.

SS

Johnny Oxygen's picture
Johnny Oxygen
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Posts: 1443
Re: Fisher Says Central Bank Is Under Attack From Paul, Frank

Important quote from this article:

"I don't see any difference between them," Fisher said, referring to Frank and Paul. "They believe we have too much independence. They believe that Congress should be in charge of monetary policy."

 

 

thc0655's picture
thc0655
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Joined: Apr 27 2010
Posts: 1614
Wall Street protest

What's it all about?  It looks like a Rorschach ink splatter: people who are angry about something (and rightly so) seem to be latching on to the protest even though it seemingly has no agenda. What's the agenda? There's a sea of righteous indignation that can be tapped, but it has to be focused and crystal clear.  The danger is that a protest which is full of fury and lacks focus and direction is what?  -- A RIOT !!  We don't need riots, though I'm sure we'll have plenty of them eventually.  We need powerful, focused resistance that actually hits the nails on the heads and peacefully changes the course of our society and economy.

frobn's picture
frobn
Status: Silver Member (Offline)
Joined: Nov 28 2010
Posts: 184
thc0655 wrote: What's it all
thc0655 wrote:

What's it all about?  It looks like a Rorschach ink splatter: people who are angry about something (and rightly so) seem to be latching on to the protest even though it seemingly has no agenda. What's the agenda? There's a sea of righteous indignation that can be tapped, but it has to be focused and crystal clear.  The danger is that a protest which is full of fury and lacks focus and direction is what?  -- A RIOT !!  We don't need riots, though I'm sure we'll have plenty of them eventually.  We need powerful, focused resistance that actually hits the nails on the heads and peacefully changes the course of our society and economy.

At its core it is a protest against the systems and institutions that support endless war and unrestrained corporate greed?

It is in the beginning stages and the anger is unfocused. People at all levels know they have been cheated, conned, econned and that their livelihoods have been taken away. The danger is real and there will be missteps but in time the protester's agenda will become focused, and natural leaders will appear. Let's hope they will be wiser than the one's who created the mess we are now in.

truenorth's picture
truenorth
Status: Member (Offline)
Joined: Feb 1 2009
Posts: 21
Boston Consulting Group

 

 
 

We believe that some politicians and central banks - in spite of protestations to the contrary - have been trying to solve the crisis by creating sizable inflation, largely because the alternatives are either not attractive or not feasible:

  • Austerity - essentially saving and paying back - is probably a recipe for a long, deep recession and social unrest
  • Higher growth is unachievable because of unfavorable demographic change and an inherent lack of competitiveness in some countries
  • Debt restructuring is out of reach because the banking sectors are not strong enough to absorb losses
  • Financial repression (holding interest rates below nominal GDP growth for many years) would be difficult to implement in a low-growth and low-inflation environment

Inflation will be the preferred option - in spite of the potential for social unrest and the difficult consequences for middle-class savers should it really take hold. However, boosting inflation has not worked so far because of the pressure to deleverage and because of the low demand for new credit. Moreover the inflation "solution" while becoming more tempting, may come to be seen as having economic and social implications that are too unpalatable. So what might the politicians and central banks do?

 

http://www.bcg.com/documents/file83753.pdf

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Peak Gas in the UK?

http://www.guardian.co.uk/business/2011/sep/29/north-sea-gas-production-falls-by-a-quarter?CMP=twt_fd

 

North Sea gas production falls 25%

Terry Macalister

29 September 2011

North Sea gas production has slumped by 25% in the second quarter of the year, an alarming increase in the rate of decline that will cut tax revenues and could put more pressure on government to agree controversial shale gas developments.

Figures from the Department of Energy and Climate Change (DECC) also show a 36% rise in coal imports, but a leap from 6.3% to 9.6% for the amount of electricity generated by wind and other renewables.

The department records that the output of oil and associated gas liquids fell by 16% in the three months to the end of June, compared with a year earlier – the biggest decline since records began 16 years ago.

This left Britain importing 3.6m tonnes of oil in the second quarter, compared with 2.8m tonnes in the same period of 2010, even though total oil demand fell by 1.7%.

But the largest fall was in the amount of gas produced from the southern North Sea, where operators have been arguing that projects may have to be shut down because of a rise in government taxes in the last budget.

Malcolm Webb, chief executive of the industry pressure group, Oil & Gas UK, said: "On the face of it, a production decline of this magnitude is extremely worrying and we need to investigate and fully understand what has happened here.

"For the sake of the UK's economy and its energy security, we should be doing everything we can to encourage sustained investment in our nation's oil and gas resource to slow the decline and prolong the producing life of fields."

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
World Collapse Explained in 3 Minutes

!

Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
Joined: Sep 9 2009
Posts: 1443
Damnthematrix wrote:
Damnthematrix wrote:

!

That is just brilliant.

Thanks

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