Daily Digest

Daily Digest - Apr 23

Thursday, April 23, 2009, 9:53 AM
  • Jon Stewart Takes Over for CNBC and Cramer Becomes the Joke ( Video, H/T SteveS)
  • Jon Stewart Takes Over for CNBC and Cramer Becomes the Joke (Part II Video, H/T SteveS)
  • WH communications director leaving
  • Budget Deficits Don’t Matter – Until they Do…
  • KC Fed Pres Hoenig on “Negotiated Conservatorship”
  • Capital One: Expect Charge-Off Rates Greater than 10%
  • Fannie, Freddie Report Surge in Prime Delinquencies
  • Meredith Whitney: Regardless of stress tests, banks will still need more capital (Video on page)
  • Deaf Ears, Statements on Capitol Hill by Geithner and Warren (Video on page)
  • Buying Votes Right Out There in the Open
  • Acting CFO of Freddie Mac commits suicide
  • Know Your Enemy
  • Kids Know, One in Three Children Fear Earth Apocalypse
  • Economy 101, No Consumer = No Economy

Economy

Jon Stewart Takes Over for CNBC and Cramer Becomes the Joke (H/T SteveS)

Jon Stewart Takes Over for CNBC and Cramer Becomes the Joke (Full Episode Video, H/T SteveS)

WH communications director leaving 

Ellen Moran, White House communications director, will become chief of staff for Commerce

Budget Deficits Don’t Matter – Until they Do… 

And the day they do has arrived… as in today. No, we won’t be pushing our debts off onto our grandkids, our debts cannot be carried that long.

 

Tax revenues are collapsing while at the same time spending is ramping on all government levels; city, county, state, and Federal. This spells trouble for Bernanke and his effort to sell never ending billions of our debt. It will end, and it will likely end badly. This is a very major story...

 KC Fed Pres Hoenig on “Negotiated Conservatorship” 

United States Congress
Thomas M. Hoenig
President and Chief Executive Officer
Federal Reserve Bank of Kansas City 

Washington, D.C.
April 21, 2009 2

Madam Chair Maloney, Vice Chair Schumer, ranking members Brady and Brownback, and members of the committee. Thank you for the opportunity to testify at this hearing.

The United States currently faces economic turmoil related directly to a loss of confidence in our largest financial institutions because policymakers accepted the idea that some firms are just “too big to fail.” I do not.

 Capital One: Expect Charge-Off Rates Greater than 10% 

The expected 'greater than 10% charge-off rate' is probably worse than the expected credit card loss rates for the "more adverse" scenario. I'll be curious if the Federal Reserve white paper, to be released on Friday, will mention the expected loss rates by category.

 Fannie, Freddie Report Surge in Prime Delinquencies 

The tables show that the number of prime 60 days+ delinquent rose to 743,686 in January, from 497,131 in December. This is an increase from 1.93% in December to 2.89% in January. 

The number of non-prime 60 day+ delinquent loans increased too; from 428,705 in December to 485,365 in January. But the foreclosure problem is now mostly a prime problem!

Or as Tanta used to say: "We're all subprime now!"

 Meredith Whitney: Regardless of stress tests, banks will still need more capital (Video on page) 

1:30 Yard Sales & Gobbly-Gook, Regional Banks & Commercial Real Estate Exposure

 Deaf Ears, Statements on Capitol Hill by Geithner and Warren (Video on page)

Buying Votes Right Out There in the Open 

From the wires: 

General Motors Corp. could get as much as $5 billion more in federal loans, while Chrysler LLC could get $500 million as they race against government-imposed deadlines to restructure, according to a government report filed Tuesday. A person briefed on the plans said Tuesday that the exact amount of the loans have not been finalized and will be worked out with the companies. The person asked not to be identified because the negotiations are confidential. GM already has received $13.4 billion in government loans, while Chrysler has received $4 billion. Both automakers employ thousands [OF VOTERS] in Ohio, the No. 2 auto-producing state after Michigan.

I added the [OF VOTERS] part.

 Acting CFO of Freddie Mac commits suicide 

As CFO, Kellermann is responsible for the company's financial controls, financial reporting and oversight of the company's budget and financial planning.

 Know Your Enemy 

Are You a Terrorist? 

Most people in America, comfortable in their manicured lawn suburban sprawl will discount the possibility of civil unrest, war, and dictatorship in this country. Could Nazi like sociopaths gain control of our government? It is inconceivable. Anyone who would bring up this possibility would be branded a lunatic. As Doug Casey recently pointed out in his article Street Fighting Man, the Germans thought the same thing.

 Kids Know, One in Three Children Fear Earth Apocalypse 

There's a new bogeyman lurking in the closet, and this one isn't imaginary. Us. One out of three children aged 6 to 11 fears that Ma Earth won't exist when they grow up, while more than half—56 percent—worry that the planet will be a blasted heath (or at least a very unpleasant place to live), according to a new survey.

 Economy 101, No Consumer = No Economy 

According to the MBA data, purchases still cannot get any traction in response to the multi decade low in mortgage rates and the seasonally busy time of the year. Purchases fell 4.2% to the lowest since the week ended Nov 14 which was right before the Fed announced their MBS purchase plan even though mortgage rates have fallen 144 bps since that time from 6.17% to 4.73%. Refi’s on the other hand rose 7.7% and remains near the highest level since ‘03 when rates were between 5-5.5%.

 The Feb FHFA home price index is out at 10am. ABC confidence rose 4 pts to -47 to a 5 week high and coincides with the recent action in the markets.

The WSJ is reporting that on Friday the Govt will release ‘an outline of how the stress test’s were conducted,’ especially the degree of stress they used in their assumptions. On May 4th, more details will be out on specific banks.

20 Comments

DavidC's picture
DavidC
Status: Silver Member (Offline)
Joined: Sep 29 2008
Posts: 243
Re: Daily Digest - Apr 23

Eloquently stated about Timmy, Davos!

David

Alex Szczech's picture
Alex Szczech
Status: Silver Member (Offline)
Joined: Dec 31 2008
Posts: 105
Re: Daily Digest - Apr 23

That was an interesting piece about children's trepidation regarding the future. In some ways kids are more perceptive than many adults.

DavidC's picture
DavidC
Status: Silver Member (Offline)
Joined: Sep 29 2008
Posts: 243
Re: Daily Digest - Apr 23

Davos, the link for the second Jon Stewart video doesn't work - it refers back to itself and shows today's Digest.

David

presentmoment's picture
presentmoment
Status: Bronze Member (Offline)
Joined: Sep 22 2008
Posts: 57
Re: Daily Digest - Apr 23 - On Thomas Hoenig

There is still some hope because there are people like Hoenig.  The problem is there are a lot more people who are incompetent and are in the position of leadership or in the position of influencing leaders in wrong way in this country.  And any other countries too in that matter...

presentmoment

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Daily Digest - Apr 23

 Hello DavidC:

 

Link is fixed, second half is now the full episode, to all sorry for the glitch. And I like Mono's  "Geithner, Summers, Paulson, Bernanke. Nail them, jail them" now that is class in place of my crass. Take care

PS Sorry to be so crass, but when it comes to morons ruining our kids future I have no patiance and no respect.

Jarhett's picture
Jarhett
Status: Silver Member (Offline)
Joined: Nov 21 2008
Posts: 132
Re: Daily Digest - Apr 23

Davos-

I just listened to this in my real estate transaction class today.  It is a good pod cast about the sub prime mortgage disaster.  It is called the giant pool of money.

http://audio.thisamericanlife.org/player/CPRadio_player.php?podcast=http...

joemanc's picture
joemanc
Status: Martenson Brigade Member (Offline)
Joined: Aug 16 2008
Posts: 834
Re: Daily Digest - Apr 23

Davos - Are you coming to Lowesville this weekend?

dcm's picture
dcm
Status: Silver Member (Offline)
Joined: Apr 14 2009
Posts: 205
Re: Daily Digest - Apr 23 Elizabeth Warren

you know something's wrong

with your country

when the only news

that isn't parody

is the parody news.

dickey45's picture
dickey45
Status: Bronze Member (Offline)
Joined: Oct 12 2008
Posts: 77
Re: Daily Digest - Apr 23

"Whitney's video was priceless, yard sales and gobbledygook."

Is there a link to this?  Sorry if I missed it...

 

Nevermind - I found it :)

Goal Digger's picture
Goal Digger
Status: Bronze Member (Offline)
Joined: Nov 17 2008
Posts: 39
Re: Daily Digest - Apr 23

Hoenig sounds like a sane and competent official within the Federal Reserve system.  How refreshing!

Is there video of his testimony and any questions/answers?  I'm curious as to how he was received in Congress?  Given real time and attention, or simply dismissed as "too practical"!!!

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Daily Digest - Apr 23

Billy-Bob writes:

"Do you really think Kenny-boy Lay died of a "natural" heart attack?"

And not to sound like a conspiracy theorist, BUT, I'd have that same question also, especially after seeing his wife interviewed and really listening to her point out who named him Kenny-boy. We know people who were neighbors with Casey's wife. Oh the stories I have heard.

FireJack's picture
FireJack
Status: Silver Member (Offline)
Joined: Feb 8 2009
Posts: 156
Re: Daily Digest - Apr 23

Option Arm Loans turns into Nightmare

 

Just a little reminder that a bigger more devastating wave is coming. Not sure what to think when I read stuff like that, just how bad can it get? Even looking across the border I don't see the US going down alone so its not like I can sit back and say "stupid Americans, that you get when you live beyond your means." Now our supposedly strong banks are housing markets are proving to be anything but. Now their trying to claim signs of bottoming out.

Erik T.'s picture
Erik T.
Status: Diamond Member (Offline)
Joined: Aug 5 2008
Posts: 1234
Re: Daily Digest - Apr 23

I predict big news to come out about Fannie. The CFO's suicide just doesn't make sense to me, unless he was in the middle of something really big that is about to come out (e.g. more corruption on a larger scale than previously reported).

That's my prediction of the day... :-)

Erik

 

pir8don's picture
pir8don
Status: Gold Member (Offline)
Joined: Sep 30 2008
Posts: 456
Re: Daily Digest - Apr 23

Hey - a title to get excited about on Dmitry Orlov's site

Change you can suspend belief in

http://cluborlov.blogspot.com/

You just got to love him

but wait theres more ......

Further down the page we are treated to

Deficit Attention Dissorder

A guest post this one. see for yourself

Don

__________________________________

There is a crack in everything, thats how the light gets in

Leonard Cohen Lyric

grl's picture
grl
Status: Silver Member (Offline)
Joined: Nov 30 2008
Posts: 188
Re: Daily Digest - Apr 23
ErikTownsend wrote:

I predict big news to come out about Fannie. The CFO's suicide just doesn't make sense to me, unless he was in the middle of something really big that is about to come out (e.g. more corruption on a larger scale than previously reported).

That's my prediction of the day... :-)

Erik

 

 

maybe Erik,  but don't forget these people have personal lives too.
Mr. Kellerman could have struggled with depression, his marriage could have been on the rocks, he might have lost a lot of his financial worth, heck, he might have even been on the short list for layoffs, whatever. The truth may never be known but to attribute anything and everything, whether it be coroners reports of heart attack, suicide, shoot - for all I know - brain aneurisms - to a big, bad and unknowable conspiracy reminds me of why I rarely frequent this site anymore. But, in any case, it would be fairly interesting (and not all that surprising) if some credible news of corruption on a larger scale precipitated his suicide.
grl's picture
grl
Status: Silver Member (Offline)
Joined: Nov 30 2008
Posts: 188
Re: Daily Digest - Apr 23

Kids Know, One in Three Children Fear Earth Apocalypse 

That is just sick. How we have indoctrinated our children with fear at such a young age! Why don't we really scare them and tell them what is really threatening their future - a major war which will likely reach the shores of the U.S. and will also likely include nuclear weapons. Let's see what happens first - the death of planet earth due to carbon emmissions or nuclear holocaust.

Or....how about we adults let up on our predictions which are at this point, simply BELIEFS, and let children be children. I am simply disgusted by this article and its implications.

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Daily Digest - Apr 23

 Hello Grl:

I agree it is sick for kids to even broach that subject. You wrote: 

 

Why don't we really scare them and tell them what is really threatening their future - a major war which will likely reach the shores of the U.S. and will also likely include nuclear weapons.

 

In the 60s kids had to do duck and cover drills (hiding under their desks in case the mean USSR bombed us during school hours) and grew up during the Cuban missile crisis. Some moms and dads installed bomb shelters...

I used to not think along any conspiracy lines, then I watched this http://www.videosift.com/video/Enron-The-Smartest-Guys-in-the-Room and now I question the legitimacy of a lot of things. I don't know the minute points but in that video they have who named Kenny-boy, his wife explains it well. And, if I'm not mistaken, in this video they have the reason Gray Davis got replaced and when Kenny-boy flew out there to meet with Arnie who would then become the gov. Several elderly people died of heat exposure when Enron was flicking the switch off to drive prices up. In my simple mind that is a conspiracy, especially when a govoner loses his job over it.

Take care

DavidLachman's picture
DavidLachman
Status: Silver Member (Offline)
Joined: Jul 4 2008
Posts: 153
Re: Daily Digest - Apr 23

Hi Pir8don

Nice Cluborlov posts.  The conclusion to the April 9th post is worth repeating for those who may have missed it:

I believe in providing a hopeful vision of the future as much as I believe in providing a sufficiently horrific vision of the present for it to be, in my opinion, a realistic one. However, I am beginning to feel somewhat thwarted in my efforts by this new compulsion sweeping the land to shoot oneself in the foot while simultaneously setting one's hair on fire. The only hope I can offer you today is that this current trend toward suicidal stupidity is temporary, and that it will run its course long before we completely ruin our chances for an orderly regression.

Morpheus's picture
Morpheus
Status: Diamond Member (Offline)
Joined: Dec 27 2008
Posts: 1200
Re: Daily Digest - Apr 23

Davos. You're much too restrained at times. Don't hold back now! 

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Daily Digest - Apr 23

Hello Pete:

Okay, let me tell you what I really am thinking.....LOL. 

Take care, your blogger who has the tact, refinement and diplomacy of a brick coming through a window 

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