Daily Digest

Daily Digest - August 25

Tuesday, August 25, 2009, 9:52 AM
  • Here Comes THE JUDGE!
  • And There Goes Rare Metal (H/T Mike Pilat)
  • King/Grayson Interview (Audio, H/T Inverstorzzo)
  • Ordinary Americans Saw The Current Downturn Coming Well Before The Experts Did
  • Two Beers with Steve Episode 18 - The Pension Pulse
  • Interactive Credit Map (Link on page)
  • Barry Ritholtz (Video)
  • The 3:30 Ramp Visualized, Courtesy Of JPM's ETF Desk (Chart on page)
  • The Jon Stewart (Video)
  • Boston Fed On The Panic Of 1907 (or is that 2008?)
  • Dr. Marc Faber Interview on King World … (Audio on page)
  • Stephen Meister on the State of Commercial Real Estate … (Video on page)

Economy

Here Comes THE JUDGE!

The Federal Reserve must make public reports about recipients of emergency loans from U.S. taxpayers under programs created to address the financial crisis, a federal judge ruled.

And There Goes Rare Metal (H/T Mike Pilat)

Beijing is drawing up plans to prohibit or restrict exports of rare earth metals that are produced only in China and play a vital role in cutting edge technology, from hybrid cars and catalytic converters, to superconductors, and precision-guided weapons.

King/Grayson Interview (Audio, H/T Inverstorzzo)

Ordinary Americans Saw The Current Downturn Coming Well Before The Experts Did

When it comes to economic matters, many of those who allegedly know best dismiss the prognostications of the average Joe. The fact is, however, that ordinary Americans saw the current downturn coming well before the experts did.

Indeed, up until the bottom fell out -- and even after the National Bureau of Economic Research declared December 2007 to be the start date of the downturn -- many clueless policymakers, Wall Street economists, and media pundits remained upbeat on the economy and bullish on stocks.

Two Beers with Steve Episode 18 - The Pension Pulse

I'm very excited about presenting this interview with Leo Kolivakis due to the fact that Pensions are for the most part largely ignored by all media sources, even by the best financial blogs out there.

Pensions not only pose a systemic risk financially but as Leo explains they pose a major deflationary risk. Luckily, I get to edit these podcasts so I get to hear a second listen and I would suggest re-listening to the last thirty minutes a second time.

Interactive Credit Map (Link on page)

Barry Ritholtz (Video)

The 3:30 Ramp Visualized, Courtesy Of JPM's ETF Desk (Chart on page)

The Jon Stewart (Video)

Boston Fed On The Panic Of 1907 ( Or Is That 2008?)

Dr. Marc Faber Interview on King World…(Audio on page)

Hyperinfaltion vis-a-vis weaker dollar.

Stephen Meister on the State of Commercial Real Estate...(Video on page)

16 Comments

One1776's picture
One1776
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Re: Daily Digest - August 25

"U.S. unemployment will surge to 10 percent this year and the budget deficit will be $1.5 trillion next year, both higher than previous Obama administration forecasts because of a recession that was deeper and longer than expected, White House budget chief Peter Orszag said." (Bloomberg article)

Yet Bernanke is sticking around.?!?!?!

I'm afraid we are in real trouble.

 

 

 

dcm's picture
dcm
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Posts: 205
Re: Here Comes the Judge

Thanks for posting the Bloomberg v. Fed Reserve FOIA Summary Judgment.

I love how the Fed argues that disclosing the borrowers names is privileged and exempt because its dislosure "could put them in a weakened position" And I love how the court  sarcastically replies but "looking weak to competitors and shareholders is an inherent risk of market participation!"

apparently the bench has forgotten that we are no longer operating in a free market

 

calledoutin08's picture
calledoutin08
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Re: Daily Digest - August 25

Davos will you or Chris be posting the FDIC 2q results? And are they coming out today as this video implies?

MSCantr's picture
MSCantr
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Re: Daily Digest - August 25

Obamacare facebook joke

Davos's picture
Davos
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Re: Daily Digest - August 25

Funny!

FireJack's picture
FireJack
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Posts: 156
Re: Daily Digest - August 25

I am getting more and more convinced that there will be a major crash this fall (or the second part of the crash that began last fall). The second the governments of the world are forced to stop lending out all this money it ends.

What's worse is that peak oil is about to hit. When the crash comes I think Gail was right when she said oil production will crash along side it. Chris nailed it with his housing bubble chapter, it's happening just as he said. Today on the globe and mail they added this article: 

U.S. home prices mark turnaround

"Case-Shiller index shows first quarterly increase in three years; Only Detroit and Las Vegas saw prices fall in June"

 

(if someone could tell me how to resize words taken from articles I would be most appreciative)

then on the comments someone pointed this out: The author did not read the report very closely. The Case-Schiller measures CHANGE in home prices. The prices still DECLINED 14.9% in the 2nd quarter. It is just that this decline is smaller than the 19% or so from a year ago.

PRICES ARE STILL DROPPING 14.9%!!!

 

lol guess we'll just ignore that. GREEN SHOOTS EVERYONE GREEN SHOOTS!!!

Even if the world governments pull another 30 trillion out of their ass I suspect that peak oil will start to play a major role very soon. All the money in the world won't increase oil production (you hit an EROEI of zero eventually) and I suspect all the excess everyone has been screaming about lately will prove to be little more than a few days supply.

Davos's picture
Davos
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Re: Daily Digest - August 25

Less bad bacame "good". I guess that is like getting shot in the head once and not 5 times.

wroth5's picture
wroth5
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Re: Daily Digest - August 25

GREEN SHOOTS

YES ALL IS WELL IN THE HOUSING MARKETS (WAIT A MINUTE-DON'T YOU USE LUMBER TO BUILD HOUSES?)

CHICAGO, Aug 25 (Reuters) - Lumber futures on the Chicago Mercantile Exchange closed mostly lower on Tuesday amid pressure from reports of slow cash trade, while the discount to cash limited downside and made for choppy trade at times.

* Futures continued to trade near the six-month low posted in September and contract low set in November on Monday.

* Cash markets continue to show slow demand for lumber despite talk of improvement in the economy.

* New home prices were up slightly in June and single-family home sales are expected to be higher in July, but that has not improved demand for lumber that much, traders said.

wroth5's picture
wroth5
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Posts: 21
Re: Daily Digest - August 25

GREEN SHOOTS

YES ALL IS WELL IN THE HOUSING MARKETS (WAIT A MINUTE-DON'T YOU USE LUMBER TO BUILD HOUSES?)

CHICAGO, Aug 25 (Reuters) - Lumber futures on the Chicago Mercantile Exchange closed mostly lower on Tuesday amid pressure from reports of slow cash trade, while the discount to cash limited downside and made for choppy trade at times.

* Futures continued to trade near the six-month low posted in September and contract low set in November on Monday.

* Cash markets continue to show slow demand for lumber despite talk of improvement in the economy.

* New home prices were up slightly in June and single-family home sales are expected to be higher in July, but that has not improved demand for lumber that much, traders said.

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
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Posts: 3998
Kunstler on the green shoots - at his best!

"To sum it all up, the US economy is in recovery.  Paul Krugman says that we'll soon realize that Gross Domestic Product (GDP) is growing.  He actually said that on the Sunday TV chat circuit. Not to put too fine a point on it, but I would really like to know what you mean by that Paul, you fatuous wanker.  Do you mean that the Atlanta homebuilders are going to open up a new suburban frontier down in Twiggs County so that commuters can enjoy driving Chrysler Crossfires a hundred and sixty miles a day to new jobs as flash traders in the Peachtree Plaza?  Do you mean that the Home Equity Fairy is going to wade into the sea of foreclosure and save twenty million mortgage holders currently sojourning in the fathomless depths with the anglerfish?  Do you mean that all the bales of deliquescing, toxic "assets" hidden in the vaults of Citibank, JP Morgan, Bank of America, et al, (not to mention on the books of every pension fund in the USA, and not a few elsewhere) will magically turn into Little Debbie Snack Cakes on Labor Day weekend?  Do you mean that American Express and Master Card are about to declare a Jubilee on accounts in default everywhere?  Do you mean that General Motors will produce a car that a.) anyone really wants to buy and b.) that the company can sell at a profit?  Are you saying we get a do-over, going back to, say, 1981?  Did we win some cosmic lottery that hasn't been announced yet?  What's growing in this country besides unemployment, bankruptcy, repossession, liquidation, gun ownership, and suicidal despair?  In short, are you out of your mind, Paul Krugman?"

<MUCH MORE> http://kunstler.com/blog/2009/08/financial-crisis-called-off.html

jlshen2000's picture
jlshen2000
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Re: Daily Digest - August 25

FDIC delays reporting 2. quarter results originally scheduled for 8 pm today. Sounds that they are trying to hide something. I will try to get some cash out tomorrow.

Davos's picture
Davos
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Posts: 3620
Re: Daily Digest - August 25

I'm not sure how that works, frankly I'm a bit weak in that arena. MachineHead isn't. He mentioned somehting in one of his posts about Congress needing to do an approval for the Treasury. You might do a search on it. You could search KongressKlowns + Recess.

 

dcm's picture
dcm
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Posts: 205
Re: Daily Digest - August 25

Gangrene shoots. Don't pull too hard. They might snap

fujisan's picture
fujisan
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Posts: 296
Re: Daily Digest - August 25

More on FED Freedom of Information Act lawsuit

Court Orders Fed to Disclose Emergency Bank Loans (Update2) - Bloomberg.com

Aug. 25 (Bloomberg) -- The Federal Reserve must for the first time identify the companies in its emergency lending programs after losing a Freedom of Information Act lawsuit.

Manhattan Chief U.S. District Judge Loretta Preska ruled against the central bank yesterday, rejecting the argument that loan records aren’t covered by the law because their disclosure would harm borrowers’ competitive positions.

...

Jeff Borsuk's picture
Jeff Borsuk
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Posts: 150
Re: Daily Digest - August 25

nice tag line!!

Jeff

Jeff Borsuk's picture
Jeff Borsuk
Status: Silver Member (Offline)
Joined: Jul 25 2008
Posts: 150
Re: Daily Digest - August 25

nice post!

Jeff

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