Daily Digest

Daily Digest - April 30

Friday, April 30, 2010, 9:56 AM
  • Michael Krieger - This Is The Last Dance
  • Fraudonomics
  • Income Tax Must Be Raised By 6p To Return Britain's Economy To Health, NIESR Warns
  • European Inflation Accelerates to 1.5%, Unemployment Holds at 11-Year High
  • The Fed’s Hollowing Out Of U.S. Banks
  • Fuld's Perjury
  • (BN) Pemex May Need to Invest More Than $25 Billion for Output Gains
  • Despite Global Action, Biodiversity Is Declining

Economy

Michael Krieger - This Is The Last Dance (cmartenson)

Last year I wrote about how the leaders in America were essentially fiddling as Rome burned. This fiddling has become an all out dance party and many investors have been dragged onto the floor one more time due to money printing, an inherent desire to be optimistic, a plethora of propaganda and rising asset prices. However, this is the last dance folks. Our corporate and political leaders have destroyed us. Chuck Prince would be proud.

Fraudonomics (cmartenson)

Because in the 21st century, fraud is as American as baseball, apple pie and Chevrolet Volts — fraud’s all we got left, Doc. Scare off the fraud with Obama’s “scrutiny,” and the entire pyramid scheme collapses in a heap of smoldering savings accounts.

That’s how an acquaintance of mine, a partner in a private equity firm, put it: “Whoever pops this fraud bubble is going to have to escape on the next flight out, faster than the Bin Laden Bunch fled Kentucky in their chartered jets after 9/11.”

Income Tax Must Be Raised By 6p To Return Britain's Economy To Health, NIESR Warns (cmartenson)

In a bombshell report with less than a week to go until the general election, the National Institute for Economic and Social Research (NIESR) warned that all three political parties were not ambitious enough with their plans to slash the deficit. It advised that, on top of their radical plans to slash spending and reduce the shortfall in the government accounts, the election winner should "gradually raise income tax by 6p in the pound."

European Inflation Accelerates to 1.5%, Unemployment Holds at 11-Year High (cmartenson)

Oil prices have surged 16 percent in the past three months, pushing up inflation even as companies are cutting costs and eliminating jobs. While European economic confidence improved to the highest in more than two years in April, concern that the Greek crisis is spreading may prompt delays in hiring plans.

The Fed’s Hollowing Out Of U.S. Banks (james_knight_chaucer)

So the government decided instead to support the housing market by creating an artificial mortgage market, where almost all the originations of the most common types of residential mortgages were purchased by the Federal Reserve as soon as the mortgages were converted to mortgage-backed securities. The Federal Reserve had to buy the mortgage security, because the mortgage rates were well below those that would have been available in a free market. This decision to entirely replace the private market on such a massive scale was extraordinary and unprecedented, even if it received very little media coverage and the average person is still unaware what happened.

Fuld's Perjury (Ben Johnson)

Dick Fuld said under oath that he was paid less than $310 million from 2000 through 2007, and that he held, rather than sold, the “vast majority” of his shares, if not all of them. But it’s becoming increasingly clear that he was lying.

Energy

(BN) Pemex May Need to Invest More Than $25 Billion for Output Gains (SolidSwede)

Higher investment in the state-owned company will help ensure “gradual growth” in production to a goal of 3.3 million barrels a day by 2024, Energy Minister Georgina Kessel said yesterday in an interview at Bloomberg’s headquarters in New York. She’s also chairwoman of the Mexico City-based company, which currently produces about 2.6 million barrels a day.

Environment

Despite Global Action, Biodiversity Is Declining (Jeff B.)

Fast forward to 2010, the international year of biodiversity — things aren't getting better. In fact, for wildlife around the world, they're getting much, much worse. In a study published Thursday in Science, a team of scientists and environmentalists from around the world assessed the state of global biodiversity and found that it has been in steady decline.

Please send article submissions to: [email protected]

7 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4061
Re: Daily Digest - April 30

"On gold dinar, Raja Dr Nazrin said it was an idea that needed to be further discussed.

"The discussion must be held in a wider context about the United States being the reserve in the world and many people are questioning with the state of the US economy today, can the US dollar continue to become the reserve of the world?" he said.

He said countries like China, which had huge reserves of the greenback, are worried about the stability and strength of the US dollar.

"Countries are beginning to look at diversification, away from US dollar as a reserve currency and so the discussion on gold dinar must be discussed within the context of this bigger picture," he added."

"April 30 (Bloomberg) -- Greek Prime Minister George Papandreou said the nation’s survival was at stake in talks to win a potential $159 billion European Union-led bailout that included budget cuts denounced by unions as “savage.”

“Now, today, immediately, what is at stake is the survival of the nation,” Papandreou said in parliament in Athens today. “This is the ‘red line.’” He said talks with the EU and International Monetary Fund were “tough,” with his government resisting “not in the street with rocks, but in negotiations.”"

....................2A) Greeks face tax, pensions and pay misery in austerity plan

"An increase in the retirement age from 53 to 67, a three-year wage freeze and cuts in public sector pay are understood to be among the austerity measures agreed to by the Greek Government in exchange for a €24 billion (£21 billion) rescue package.

The measures include severe cuts in Civil Service wages, with public servants losing their “13th and 14th” months’ salary and pension entitlements, a reduction of state benefits and tax increases on alcohol and tobacco to help cut the deficit.

Final details were still being decided last night with officials from the International Monetary Fund, the European Commission, and the European Central Bank. A final draft should be ready for approval by the Greek Parliament next week. "

"The U.S. Treasury Department will sell a net $351 billion in notes, bonds and bills in the second quarter, according to a survey released by the Securities Industry and Financial Markets Association on Thursday. "

"Harrisburg, Pa., will skip a bond payment of $425,282 due May 3, a city official said Thursday, marking the second time the city will have missed a debt payment in little more than a month.

This time, Assured Guaranty Municipal, which insured the debt, will make the payment to investors instead.

"As of right now, the city does not anticipate being able to honor its guarantee … due to severe budgetary constraints," city finance director Bob Kroboth said in an email.

The payments are part of the $288 million in debt related to a problem-plagued incinerator. The payments due this year—$68 million—exceed the city's annual budget. The city has paid only $637,500 so far this year, according to Mr. Kroboth.

At a public meeting earlier this week, City Controller Daniel C. Miller advocated filing for municipal bankruptcy, known as Chapter 9, to deal with the debt.

"We are looking for the least worst option," he told the seven-member council during a committee meeting Monday. He added that "bankruptcy is a viable option" that "does provide immediate benefits.""

"Value of Default Protection Has Doubled in 2010 and Is Outpacing Spain, Italy"

"As investors scramble to protect themselves from the next credit flare-up in Europe, their worries are spreading to the U.K.

Investors bought a net $443 million of credit-default swaps to insure against a U.K. default last week, according to data compiled by the Depository Trust and Clearing Corp., taking the total outstanding to $8.2 billion.

That was easily the biggest gain among sovereign borrowers. The size of protection on the U.K. has roughly doubled since the year began, a move that far outpaces the run-up in Greek CDS last fall.

The purchases haven't yet caused the prices of U.K. swaps to spike, as in other recent credit convulsions. But the market's behavior in some ways echoes behavior that preceded credit crises in Greece and elsewhere.

In comparison, insurance against a default by Portugal rose by a net $10 million last week, while insurance on Spain and Italy fell. All three of those nations are being watched as the next likely avenues of Greek credit contagion. The data suggest the U.K. could soon be a target, too. "

"LONDON (MarketWatch) -- Ratings agency Moody's Investors Service on Friday downgraded the bank financial strength ratings and the deposit and debt ratings of nine Greek banks. The move reflects "their weakening stand-alone financial strength and the anticipated additional pressures stemming from the country's challenged economic prospects," the agency said. Moody's said the deposit and debt ratings will remain on review for possible downgrade, which will be completed when the agency concludes its ongoing review of Greece's sovereign ratings. The move affects National Bank of Greece /quotes/comstock/13*!nbg/quotes/nls/nbg (NBG 3.32, +0.07, +2.15%) , EFG Eurobank Ergasias, Agricultural Bank of Greece, General Bank of Greece, Marfin Egnatia Bank and Attica Bank. "

"Ratings agency Moody's says it will wait to see details of an EU-IMF rescue package before a possible revision of Greece's credit rating, but warns a "multi-notch downgrade" remains likely.

Moody's said Thursday it will maintain its A3 sovereign bond rating for Greece -- well within investment grade -- until it considers details of the package currently being negotiated in Athens.

Greek officials say the talks are likely to be concluded by the end of the week.

On Tuesday, ratings agency Standard & Poor's downgraded Greek bonds to junk status, jolting world markets on renewed fears of a Greek default."

.................7A) Greece May See 'Multi-Notch' Moody's Cut Depending on Aid Pact

"PORT ST. LUCIE — Bond issues for projects such as Crosstown Parkway, the Torrey Pines Institute for Molecular Studies and the city’s utility system have put the city’s long-term debt at more than $1 billion.

With an unprecedented number of foreclosures and empty homes in the city in the past few years, long-term budget woes and a 14.6 percent March unemployment rate in St. Lucie County, some people are questioning whether the city has the ability to make payments on its annual debt."

"(Reuters) - China has complained to the United States after one of its diplomats and his family were assaulted by the police in the Texan city of Houston, the Chinese Foreign Ministry said on Friday.

The official Xinhua news agency said China's deputy consul-general in the city and his family "were assaulted by U.S. police while on their way back to China's consulate-general in Houston by car.""

"(Reuters) - Dubai World DBWLD.UL, which is in talks to restructure $26 billion in debt, is offering lenders an additional 1 percent in interest upon maturity of new debt, but the deal is unlikely to satisfy banks, analysts said on Thursday."

  • Other news stories and headlines:

Spanish unemployment tops 20% in first quarter

Woonsocket at junk bond status

Tax revenue for city down 8% (Toledo)

In Lower Manhattan, protesters split anger among banks, Washington, joblessness

ICN Informed Citizen News (Video)

gregroberts's picture
gregroberts
Status: Diamond Member (Offline)
Joined: Oct 6 2008
Posts: 1024
Re: Daily Digest - April 30

Who needs food or water, it's all been a big joke to sell things we don't need.

Holy Man Claims to Have Lived Without Food, Water for 70 Years

http://www.foxnews.com/story/0,2933,591747,00.html?test=latestnews

plato1965's picture
plato1965
Status: Platinum Member (Offline)
Joined: Feb 18 2009
Posts: 615
Re: Daily Digest - April 30

 

Moore Capital Fined $25 Million By CFTC For Platinum And Palladium Price Manipulation

 http://www.zerohedge.com/article/moore-capital-fined-25-million-cftc-platinum-and-palladium-price-manipulation

 

 

 

Hotrod's picture
Hotrod
Status: Silver Member (Offline)
Joined: Apr 20 2009
Posts: 177
Re: Daily Digest - April 30

Denninger wants us to take action.  I agree with him on this issue.  http://market-ticker.denninger.net/archives/2251-This-REALLY-Gets-Rid-Of-Too-Big-To-Fail.html

JAG's picture
JAG
Status: Diamond Member (Offline)
Joined: Oct 26 2008
Posts: 2492
Ring The Bell!

Ring the bell as this global stock market rally is over. Peter Schiff just put his kiss of death on it by launching an International Value Fund.

He may be a smart guy but his timing is pathetic.

britinbe's picture
britinbe
Status: Gold Member (Offline)
Joined: Dec 28 2008
Posts: 381
Re: Daily Digest - April 30

Unwanted homes in Irish Republic could be demolished

http://news.bbc.co.uk/2/hi/europe/8653238.stm

see video

I should add, that I was very aware of this as we travelled across Ireland from Rosselaire to The Ring of Kerry for a family wedding last summer.  Lots of projects everywhere, most in various state of "unfinishedness", a shopping mall in Waterford that looked finished but with no sign of activity.  Dozens upon dozens of empty holiday homes/cottages with discounted rental fees.  The Irish have a very long and hard road ahead of them................... but then, at least they have already started the journey and they understand the reality of the economic situation which is more than most of the rest of the world.

 

Poet's picture
Poet
Status: Diamond Member (Offline)
Joined: Jan 21 2009
Posts: 1891
Re: Daily Digest - April 30
britinbe wrote:

Unwanted homes in Irish Republic could be demolished

http://news.bbc.co.uk/2/hi/europe/8653238.stm

see video

I should add, that I was very aware of this as we travelled across Ireland from Rosselaire to The Ring of Kerry for a family wedding last summer.  Lots of projects everywhere, most in various state of "unfinishedness", a shopping mall in Waterford that looked finished but with no sign of activity.  Dozens upon dozens of empty holiday homes/cottages with discounted rental fees.  The Irish have a very long and hard road ahead of them................... but then, at least they have already started the journey and they understand the reality of the economic situation which is more than most of the rest of the world.

I say the Irish deserve respect for taking the difficult, austere road ahead. None of the entitlement anger and economic statistical lies like that seen with the Greeks. One day I hope to visit Ireland.

Poet

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