Daily Digest

Daily Digest - August 27

Thursday, August 27, 2009, 10:06 AM
  • "Unsustainable" by Dr. Christopher Peters
  • Creative Destruction: Bloggers Know the Problem and the Solution (Video)
  • Good Things Happen to Good People: Federal Reserve Chairman Hit by High-Tech Pickpocket Ring
  • Banks Sitting on Bad Mortgages, And They Aren't Getting Any Better
  • Top Holders of CRE (Chart)
  • American Idiots, by Jim Quinn
  • Bailout Nation Reviews (So Far)
  • AP Article, can't post but please google "Rhode Island To Shut Government Down For 12 Days"
  • Obama Continues Peddling Fantasy Deficit Numbers
  • Geithner – Audit the Fed Dangerous? Forget it, Get Rid of the Fed! (Video)
  • Green Sharts On The NYSE!

Economy

"Unsustainable" by Dr. Christopher Peters

Whitepaper with excellent charts

Creative Destruction: Bloggers Know the Problem and the Solution (Video)

Four Star Video on page

Good Things Happen to Good People: Federal Reserve Chairman Hit by High-Tech Pickpocket Ring

According to Newsweek, last summer, just as Bernanke was beginning to deal with the first round of the financial crisis that struck Wall Street and the banking industry, he learned that his wife’s purse had been snatched by a thief. Anna Bernanke was at a Starbucks near Capitol Hill when the crook grabbed her purse from the back of her chair. It contained a checkbook for the couple’s joint Wachovia bank account, as well as her driver’s license, Social Security card, and four credit cards. The checks listed the couple’s bank account number, name, home address and phone number.

Six days later a suspect named George Lee Reid entered a Bank of America branch in Prince George’s County and posed as another identity-theft victim, identified in a federal affidavit as “K.N.”, who had previously reported his wallet stolen.

Reid allegedly deposited two fraudulent checks in the amount of $900 into K.N.’s bank account — one of which was a check from Bernanke’s checkbook. Once the checks were deposited, he then allegedly cashed two other fraudulent checks in the amount of $4,500 that were made out to K.N. from a third victim. He left the bank with $9,000 in cash, according to court records. Bernanke, who had reported the theft, suffered no financial loss, according to Newsweek.

Banks Sitting on Bad Mortgages, And They Aren't Getting Any Better

So banks have gone from foreclosing on about 45% of their severely delinquent Alt-A loans each month to 20%.

So if you own a house that’s underwater, in practice you can probably keep living there (or collecting rent payments) for a year or so without making payments to the bank. You have 3 months before the loan is bad enough for the bank to foreclose, around 3 more months before the bank starts the foreclosure process and who knows how much longer before the bank actually moves to take possession of your home.

Top Holders of CRE (Chart)

American Idiots, by Jim Quinn

“In the first place, God made idiots. That was for practice. Then he made school boards.” - Mark Twain

Bailout Nation Reviews (So Far)

AP Article, can't post but please google "RI To Shut Government Down For 12 Days"

Obama Continues Peddling Fantasy Deficit Numbers

The Titanic isn't simply “going down”, it's almost sunk. Yet, on a near-daily basis, the “Skipper” (aka Ben Bernanke) assures the American people that “it's smooth sailing ahead”. Millions upon millions of “underwater” mortgages don't lie. Trillions of dollars in “underwater loans” continue to sit on the books of U.S. banks at fantasy valuations.

Geithner – Audit the Fed Dangerous? Forget it, Get Rid of the Fed! (Video)

Green Sharts On The NYSE!

"Oh yes, we have a tremendously positive stock market here. The tenor and tone is good, the volume support is ok, all looks excellent for continued rallying on an improving outlook for the global economy."

You mean like this?

That's a clever little search in which I asked for the highest-volume stocks with prices over ten cents (to exclude the little penny pumper stocks on the OTC market.)

33 Comments

Davos's picture
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Re: Dailt Digest - August 27

I'm on Jim Quinns distribution list. I didn't post that article above last week, I skimmed about half of it and was insulted. When I went back and read it again I see his intent was dysfunctionality not a bash on people who attend or don't attend school.

Sorry for the missread and the delay.

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Bank Holiday in September?

I just saw this on another site and don't recall seeing it here before.

http://www.infowars.com/bankster-holiday-planned-for-september/

It makes an interesting argument regarding a possible bank holiday sometime in September.

Tim

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Re: Daily Digest - August 27

Tales from the UK. The recession is not over. These are well worth reading. The first is more UK-centric but the second is global-centric:

http://www.guardian.co.uk/business/2009/aug/27/investment-and-retail-sales-fall

http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100000698/can-the-souffle-really-rise-again/

The second one mentions that China is starting to reign in its stimulus (see the Sprott report, above).

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Re: Daily Digest - August 27

Peter Schiff on Al-Jazeera

Part 1:

Part 2:

I feel like he's setting himself up as a fall-guy. I can already picture people saying "It was HIS fault, he talked it down there" after the dollar dives faster than gravity can pull it.

 

Davos's picture
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Re: Daily Digest - August 27
Spilldenmark wrote:

Peter Schiff on Al-Jazeera

Part 1:

Part 2:

I feel like he's setting himself up as a fall-guy. I can already picture people saying "It was HIS fault, he talked it down there" after the dollar dives faster than gravity can pull it.

 

Don't know who "it" will be but it will be an "it" of a scapegoat for simple minds.

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Re: Daily Digest - August 27

Here is Jim Willie's latest:  http://www.financialsense.com/fsu/editorials/willie/2009/0827.html

One theme of his piece is the possibility of foreign creditors sinking us.     

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Re: Daily Digest - August 27

I love this title on yahoo today

http://news.yahoo.com/s/nm/20090827/bs_nm/us_banks_fdic

'FDIC problem bank list hits 416, but recovery eyed'

The article is like the scene in the 'Naked Gun' when Leslie Nielsen is telling everyone to calm down, there is nothing to see here.

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Re: Daily Digest - August 27

http://www.youtube.com/user/InflationUS#play/all/uploads-all/0/dYOXusoAZME

 

Nice letter by Dr. PetersonSmile!

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Re: Daily Digest - August 27

I forgot which book I read about what is happening now. Back three years ago it was written as a possible scenario of what could happen given these private/corporate/governmental debt loads.

The authors all stated that we'd know when collapse was imminent becuase at that given point officials would come out and placate everyone.

Placation fever - getting higher. LOL, we should get color codes like the Dept. of Homeland Insecurity uses.

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Jim Quinns

That article had a lot of very interesting information, but unfortulately it was way to heavily biased by ideology. Comments like "black men have not taken personal responsibility for their children and families" and the entire tirade against socialism, just to then quote Finland as a role model - News flash, Finland is very much socialist, and so are at least half of the countries on the top of the chart he presented...

It's ironic that for someone that believes himself to be well educated he, like most americans, doesn't seem to know the difference between Communism and Socialism.

Social programs are not the problem, incompetence and lack of accountability are the problems. In that point I agree with him completely.

One of the reasons why unions are inherently bad is that they only focus on the benefits of their members. Private, for profit, schools MAY be just as bad, because like any corporation they are designed to make money - Again, the focus isn't to benefit the students. There has to be a concious decision of the government to make teachers, schools and parents accountable to the students.

One of the things that I enjoy in this web site is that Chris tries to be unbiased, focusing on the facts and possible solutions instead of ideology. What works, works, it doesn't matter where it comes from...

 

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The Sinking Giraffe

I thought this was a great analogy for the American economy (h/t Nate)

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Re: Daily Digest - August 27

No worries guys, the recession is over,

http://news.yahoo.com/s/ap/20090827/ap_on_bi_ge/us_economy

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Re: Daily Digest - August 27

 

No doubt Greg and Timmy G is a strait shooting upstanding honorable individual!

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Re: Daily Digest - August 27

Greg -

What is striking about the article is the focus on domestic indicators. 

I'm waiting for someone to start putting the external stressors in play.  (Besides members of this forum of course)

How fast does it fall apart then?

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Re: Daily Digest - August 27
hucklejohn wrote:

Here is Jim Willie's latest:  http://www.financialsense.com/fsu/editorials/willie/2009/0827.html

One theme of his piece is the possibility of foreign creditors sinking us.     

Hucklejohn-

That is the outcome that I foresee. China, Japan, and Saudi cut up our credit cards, or jack up the interest to crushing (read historically mean revised) rates.

JAG's picture
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Unsustainable by Dr. Peters

What a fantastic letter Doc P. Very well done....Kudos to your efforts.

Jeff

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Re: Daily Digest - August 27

read, read, read, read, read, read, read, read, read, read, read, read, read, read, read, read, read......

research, research, research, research, research, research, research, research, research, research....

comment, comment, comment, comment, comment, comment, comment, comment, comment....

     Don't you suppose, by now, that most of know what's really wrong with this country?

                                       So, when do we make T S H T F

                 for those who continue to be the source of this country's problems?

 

P.S.  I hope a call to some kind of action is not enough to get this post pulled!

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Re: Unsustainable by Dr. Peters

What a fantastic letter Doc P. Very well done....Kudos to your efforts.

Jeff

 

Doc Peters,

What Jeff said.  Well done and a big hat-tip to you.

FB

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Re: Daily Digest - August 27

RetiredBen,

The "TSHTF" will take care of itself.

Our only responsibility is to prepare ourselves to survive the changes ahead, and by extension, to help others to survive when the time comes.

If we lead by example, and not force, and we are successful in surviving the changes ahead, then the rest will take care of itself. 

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Re: Daily Digest - August 27

This is the only blogger I know that understands the problem and offers a real solution.

www.moneyaswealth.blogspot.com

The problem is the fact that all our money comes into exsistance as an interest bearing loan and is destroyed as the principle part of that loan is paid back.  The worst part is how interest is charged on this borrowed money because once time and interest kick in, the debt grows but the money supply does not.

Davos's picture
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Re: Daily Digest - August 27
Thomas Hedin wrote:

This is the only blogger I know that understands the problem and offers a real solution.

The ONLY blogger?

Gee, I thought following the Constitution and tossing the Fed out on it's @ss is the real solution. It would be nice if the only blogger offered a quick synopsis, maybe a good YoutTube explaining this bill you speak highly of but offer no details.

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Re: Daily Digest - August 27

How would tossing the fed out fix our problems?  Whats really wrong with the Fed?

If we got rid of the fed what would we use for a money supply?

 

The blogger doesn't have a YouTube video explaining the bill but I did create a three part video series explaining the bill with the author of the bill Byron Dale.

 

The lack of details as some people may see it is because we are going to do the same thing we do right now (have banks create money) except have them spend it into circulation instead of loan it into circulation on projects that people can't live without.

 

Here is the three part video series on "The Minnesota Transportation Act"....

 

 Part 1

 Part 2

 Part 3

Can you show me another blog that cleary identifies the problem in our economy, and offers a real solution that is in legilative action?

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Re: Daily Digest - August 27

P.S.  I'm in 100% agreeance with you that the fed needs to go, because it's money that we borrow to run our economy is interest bearing debt.

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Re: Daily Digest - August 27

I'll have to watch the videos. Just the fact that this falls under transportation is concerning. First, 67% of local budgest goes to infrastructure. 70 million to do 5 miles in some cases. Natural resources per mile are insanely intensive in a world that is dealing with peak oil and peak every other resource.

I would think that if this were a good monetary bill that it would not fall under some transportation title. The book I'm 249 pages into leads me to wonder what transportation will be like in several years. Roads are extremely oil intensive. How will this work if oil hits triple digits per barrel?

The dollars that are "spent" into circulation: Do they bear interest, or are they interest free? If they bear interest - then they are a loan.

If the dollars that are "spent" into circulation are NOT dollars that were ammased via a surplus of trade or ammassed via a group of savers or succesful investment outcomes then your still creating dollars and creating an inflation based system. Granted you may not have some M____n dropping dollars from helicopters like the German's were going to do in WWII using planes and counterfieted dollars made in concentration camps to debase English system - but the net is still the net. A worthless dollar.

Dollars blew up the economy - Thank you Alan Greenspan, the Fed and Phil Graham who allowed the disassembly of protective regulation to be slipped into a bill. Thank you Paulson for not letting the cure, (read bank failure) to occur and amassing us with more debt.

Now more dollars are going to blow up the dollar. Thank you Ben.

Weighting the dollar to gold or silver would cap the amount of new dollars that could be created. Money would then shift. Things like creative destruction would do things like get rid of dinosaur media and create new web outlets.

Schiff, Martenson, Marten, FSN are all blogs that point out the problem. Money is the problem. The economy was blown up by money and lack of regulation and accounting were contributing factors...

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Re: Daily Digest - August 27

I just got done watching the 'Creative Destruction' video and I gotta say that for the first 15 minutes it was good and then it sort of turned on it's head into la-la land.

Though I believe the entrepeneurial spirit will save us, it doesn't come flying in on a magic carpet right before the country goes down the shitter. It takes time to invent new technologies and years, possibly decades, to implement them. I have a feeling the editor said 'paint this is as a feel-good story'.

One more thought, necessity is the mother of invention. when energy is accepted by the populus as a depleting resource and prices have skyrocketed, then and only then will people take the steps to switch the dependency.

steve

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Re: Daily Digest - August 27

Is Unemployment the Worst Since the Great Depression?

http://news.yahoo.com/s/usnews/20090827/ts_usnews/isunemploymenttheworst...

Interesting to see a piece like this on MSM... almost exactly the same stuff that Chris and other notables outside of MSM have been trying to inform the public about for a long time.  My guess (based mostly on how 'late to the party' MSM was concerning the depth of the housing/credit crisis) is that when we start seeing this and things like the FDIC cash crunch article being covered in MSM, we have very little time until the desperate optimism gives way and we see panic again like last October.  Just to throw a number out there I'd say we have less than two months, but I admit that's just an intuitive leap on my part.

- Nickbert

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First Toyota Plant Closure in 72 Years

http://www.bloomberg.com/apps/news?pid=20601087&sid=aJlxuxndoOsM

Aug. 28 (Bloomberg) -- Toyota Motor Corp. said it will shut a California auto-assembly plant that operated as a joint venture with General Motors Corp. for 25 years, the first time Japan’s largest carmaker has closed a factory at home or abroad.

 

A collapse in U.S. auto sales to the lowest level since 1976 has left Toyota, the world’s largest automaker, struggling to keep North American plants running at capacity. Closing the San Francisco Bay area plant, where Toyota President Akio Toyoda spent two years, compounds economic woes in California, suffering from an 11.9 percent unemployment rate.

 

Nummi employs 5,400 people, including 4,550 United Auto Workers union positions. More than 1,000 suppliers work with the factory, which has annual payroll and benefits of $523 million, according to a plant publication. Possible severance packages for the workers have not been decided on, according to Toyota spokesman Yuta Kaga. Nummi, set up as a joint venture, will make the decision, he said.

 

 

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Re: Daily Digest - August 27

Dave,

Thanks for posting my letter! I have received a lot of positive feedback, in addition to those on this post. I hope it gets a wider audience. Also, it is nice to be able to provide a link to the letter, rather than endlessly copying and pasting!

Now, on to the next letter, if I can find the time and energy, and my wife's permission...

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Re: Daily Digest - August 27
kemosavvy wrote:

I just got done watching the 'Creative Destruction' video and I gotta say that for the first 15 minutes it was good and then it sort of turned on it's head into la-la land.

Though I believe the entrepeneurial spirit will save us, it doesn't come flying in on a magic carpet right before the country goes down the shitter. It takes time to invent new technologies and years, possibly decades, to implement them. I have a feeling the editor said 'paint this is as a feel-good story'.

One more thought, necessity is the mother of invention. when energy is accepted by the populus as a depleting resource and prices have skyrocketed, then and only then will people take the steps to switch the dependency.

steve

Thanks Steve: I'll close that page, I'm half way though it. All I have time for these days are skims. I read in chunks now and FF video and audio.

I agree, no crisis no innovation! I'm on page 276 of William Hemp's book. I'm blown away, it is like reading a Martenson report or watching the Crash Course. This guy totally gets it (the 3E's). He, like the way Chris is spreading the truth and educating did a series hybrid a strong hybrid run on bio deisel and he tells how to build it. I'm tearing down the Subaru now - can't wait to get this thing going.

I seriously believe that this sort of car will be the next bubble, well that and biodiesel producers - but like you said it doesn't come flying in on the majic carpet before TSHTF, especially with the brain dead media and the m_ _ _ _ns babbling that peak oil is a peak waste of energy.

I really don't know who is more to blame, TV/Media or the Bernake's, Greenspan's, Paulson's and Grahams who blew everything up with too much money.

Take care

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Re: Daily Digest - August 27
nickbert wrote:

Is Unemployment the Worst Since the Great Depression?

http://news.yahoo.com/s/usnews/20090827/ts_usnews/isunemploymenttheworst...

Interesting to see a piece like this on MSM... almost exactly the same stuff that Chris and other notables outside of MSM have been trying to inform the public about for a long time.  My guess (based mostly on how 'late to the party' MSM was concerning the depth of the housing/credit crisis) is that when we start seeing this and things like the FDIC cash crunch article being covered in MSM, we have very little time until the desperate optimism gives way and we see panic again like last October.  Just to throw a number out there I'd say we have less than two months, but I admit that's just an intuitive leap on my part.

- Nickbert

Late to the party. LMAO.

Can't wait to see the door by the Party Starts Here store. Who knows the timing but the truth is vetting it's way out. The Atlanta Fed Lockhart Chief had an oops moment and let the 16% number slip. I have it at 18% and Williams at Shadow Stats is likely correct with north of 20%.

Also on Drudge was a bank exec saying 1,000 banks would fail. Like the rest will loan money to one another when that hits the fan. Also in mainstram is news of the FDIC lack of funding. One person yelling fire is all it will take.

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Re: Daily Digest - August 27

ICN Informed Citizen News 08/23/09

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Re: Daily Digest - August 27

Chris

Great letter -- Well done !

Maybe you'll get sa chance to have some direct input -- let's hope so

Jim

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