Daily Digest

Daily Digest - August 29

Saturday, August 29, 2009, 10:02 AM
  • The FDIC To Draw On Its Line Of Credit Treasury Soon
  • Brazil Travel
  • FDIC Dissembling Again
  • Unemployment Report 8/27 - Flat And Bad
  • The End of the Dollar
  • A Member of the Delusional Set Slips Up
  • Wages: Bungee Jumping Without a Cord (Chart)
  • Max Keiser (Yuan's not Dollars) (Video, as seen on www.theComingDepression.com)

Economy

The FDIC to draw on its line of credit at Treasury soon

The number of problem institutions is still increasing. It was 252 at the end of 2008. It grew to 305 when the FDIC last reported. It is now 416.

Loan losses are increasing, not decreasing. Both the charge-off rate and the non-current loans and leases are increasing. They are at the highest level since data collection began.

The financial sector is clearly deleveraging as $303 billion fewer assets were in the system in Q1 and an additional $238 billion fewer assets were in the system in Q2.

The FDIC only has $10 billion left in the kitty. Clearly, more funds are needed to deal with eventual losses by failed institutions.

This Is How You Kill The Dollar And Keep The Ponzi From Unraveling For Another Day

1,000 Banks to Fail In Next Two Years: Bank CEO

Hotel RevPAR Off 16.7%

In year-over-year measurements, the industry’s occupancy fell 7.2 percent to end the week at 60.4 percent. Average daily rate dropped 10.2 percent to finish the week at US$95.70. Revenue per available room for the week decreased 16.7 percent to finish at US$57.84.

Brazil Travel

I have had the good fortune to travel across both Europe and Asia to many different countries and cities. Today, landing in Brazil for the first time, I am reminded yet again how terrible it is that the vast majority of Americans do not have a passport.

FDIC Dissembling Again

"While challenges remain, evidence is building that the U.S. economy is starting to grow again," said FDIC Chairman Sheila Bair.

Unemployment Report 8/27 - Flat And Bad

No consumer, no economic recovery. No jobs, no consumer.

Its pretty simple folks.

The End of the Dollar

A Member of the Delusional Set Slips Up

Anyone who's been paying attention knows that the reality described by those who operate in Washington and on Wall Street is usually far different than the one most people are familiar with.

For example, what might look like a recessionary ball of dung to someone who has his (or her) eyes wide open can easily be mistaken for -- or twisted into -- a "green shoot" by the often conflicted souls in financial or political la-la land.

Wages: Bungee Jumping Without a Cord (Chart)

Max Keiser (Yuan's not Dollars) (Video, as seen on www.theComingDepression.com)

19 Comments

targetbuster's picture
targetbuster
Status: Bronze Member (Offline)
Joined: May 31 2009
Posts: 27
Re: Daily Digest - August 29

Interesting...the further this goes along the less anxious I am about it. 

It clearly will be what it will be. Nothin nor no one will be changing it.

Oh by the way, I did look up my banks distressed asset percentage last night.  Fifty one percent....yep that's 51% folks. But, since I'm no expert I hesitate to say what it really means but by comparison, the same bank had distressed assets of <1% two years ago. I'm thinkin that's significant.

One bank I looked up that operates in our state (and is fairly large) is still operating with a 151% distressed asset percentage. Oh, but they do have a "cease and decist" order on file from the FDIC. The new 2nd quarter balance sheet numbers are available on the FDIC website if anyone is interested to get a more up to date view on this.

Cheers!

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Daily Digest - August 29
targetbuster wrote:

Interesting...the further this goes along the less anxious I am about it. 

It clearly will be what it will be. Nothin nor no one will be changing it.

Oh by the way, I did look up my banks distressed asset percentage last night.  Fifty one percent....yep that's 51% folks. But, since I'm no expert I hesitate to say what it really means but by comparison, the same bank had distressed assets of <1% two years ago. I'm thinkin that's significant.

One bank I looked up that operates in our state (and is fairly large) is still operating with a 151% distressed asset percentage. Oh, but they do have a "cease and decist" order on file from the FDIC. The new 2nd quarter balance sheet numbers are available on the FDIC website if anyone is interested to get a more up to date view on this.

Cheers!

Since all banks are interconnected I think that says it all. This is NOT going to end well.

joemanc's picture
joemanc
Status: Martenson Brigade Member (Offline)
Joined: Aug 16 2008
Posts: 834
Re: Daily Digest - August 29

Can someone translate the ZeroHedge Dollar chart for me?

dps's picture
dps
Status: Martenson Brigade Member (Offline)
Joined: Jun 27 2008
Posts: 442
Re: Daily Digest - August 29

Remember the table that showed the ranking of banks exposed to derivitives?

Can someone help me find that?

Why don't we have a search capability on the site.  I'm used to finding a search box on sites.  ... dons

Ignignokt's picture
Ignignokt
Status: Member (Offline)
Joined: Aug 11 2009
Posts: 16
Re: Daily Digest - August 29

49 of 50 states lose manufacturing jobs

http://www.bizjournals.com/twincities/stories/2009/08/24/daily50.html?an...

Quicky article with state by state numbers, here's a highlight.

"The overall national loss was 1.52 million manufacturing jobs -- from 13.44 million in July 2008 to 11.92 million in July 2009"

Where's Obama's 3 million new jobs by the end of the year?? 

 

becky's picture
becky
Status: Silver Member (Offline)
Joined: Jan 8 2009
Posts: 113
Re: Daily Digest - August 29
dps wrote:

Why don't we have a search capability on the site.  I'm used to finding a search box on sites.  ... dons

There used to be a search box on this site.  And, it was quite useful.  Hopefully, the disappearance is only temporary.

I wish I could help you find the derivatives table, but I don't remember seeing it.

becky

dps's picture
dps
Status: Martenson Brigade Member (Offline)
Joined: Jun 27 2008
Posts: 442
Re: Daily Digest - August 29

It's almost time for me to renew my subscription, but I can't find a "renew" button anywhere on my account.  If someone could point me in the right direction, I would be grateful.  I'll even pretend to be friendly, if you want me to ;-) ... dons

cannotaffordit's picture
cannotaffordit
Status: Gold Member (Offline)
Joined: Jun 12 2008
Posts: 273
Re: Daily Digest - August 29

" Where's Obama's 3 million new jobs by the end of the year?"

I guess it's the same place as "We're gonna change the climate in Washington, D.C."

Or, same place as:  "Yes we can."    

Obviously he can't........or won't.

But he makes good speeches.

cannotaffordit's picture
cannotaffordit
Status: Gold Member (Offline)
Joined: Jun 12 2008
Posts: 273
Re: Daily Digest - August 29

dps and becky,

"Search" capability sure would be valuable. Maybe its just too complex for this site.  Or too expensive.

Mike Pilat's picture
Mike Pilat
Status: Platinum Member (Offline)
Joined: Sep 8 2008
Posts: 929
Re: Daily Digest - August 29

I'd be curious if anyone can provide a technical, news, or fundamental explanation for that dollar drop on Thursday. I had been watching the USDX that day, and had missed it for a period of perhaps 20 minutes, then turned back and practically screamed WTF?! Is there anything plausible other than manipulation? If not, then is this an effort to keep equities rallying so the public remains distracted?

the USDX has really been getting channeled into a tight spot between the 50 day ma and support near 77.5. It will be very interesting to see how things will break from here.

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Daily Digest - August 29
becky wrote:
dps wrote:

Why don't we have a search capability on the site.  I'm used to finding a search box on sites.  ... dons

There used to be a search box on this site.  And, it was quite useful.  Hopefully, the disappearance is only temporary.

I wish I could help you find the derivatives table, but I don't remember seeing it.

becky

I have others if this isn't the one you had in mind

SkylightMT's picture
SkylightMT
Status: Silver Member (Offline)
Joined: Sep 30 2008
Posts: 125
Re: Daily Digest - August 29
Mike Pilat wrote:

I'd be curious if anyone can provide a technical, news, or fundamental explanation for that dollar drop on Thursday. I had been watching the USDX that day, and had missed it for a period of perhaps 20 minutes, then turned back and practically screamed WTF?! Is there anything plausible other than manipulation? If not, then is this an effort to keep equities rallying so the public remains distracted?

the USDX has really been getting channeled into a tight spot between the 50 day ma and support near 77.5. It will be very interesting to see how things will break from here.

Here's maybe some info (http://www.rhodytrader.com/goldman-sachs-blowing-up-the-dollar/)

"According to one of my colleagues in London, the talk in the market has the move caused by a $3b sale of USD/CHF, with that sale being done by Goldman Sachs, potentially on behalf of Warren Buffett, who of course is a big owner of GS. The rumor is that Buffett is buying a big stake in Swiss banking giant UBS."

tonguefu's picture
tonguefu
Status: Member (Offline)
Joined: Dec 30 2008
Posts: 11
Re: Daily Digest - August 29

Hi there, I have attached a chart for USD. I am an FX trader - the technical (thin air) Wyliie Coyote - floor drops out... is 77.41 (most likely a free fall if she goes below).

I have a feeling the US GOV wont let this happen though. (dont ask me how, as I dont know) but if they CANT STOP THIS TRAIN NOW... its all over!

 

dps's picture
dps
Status: Martenson Brigade Member (Offline)
Joined: Jun 27 2008
Posts: 442
Re: Daily Digest - August 29

THANKS Davos!!!  YOU are the MAN!!!!  ... dons

admin's picture
admin
Status: Administrator (Offline)
Joined: May 6 2007
Posts: 346
Re: Daily Digest - August 29
dps wrote:

It's almost time for me to renew my subscription, but I can't find a "renew" button anywhere on my account.  If someone could point me in the right direction, I would be grateful.  I'll even pretend to be friendly, if you want me to ;-) ... dons

Your subscription started in 2008, prior to the system changes we made in April 2009.  You need to wait until the membership expires, then you will be able to renew.

Ron

admin's picture
admin
Status: Administrator (Offline)
Joined: May 6 2007
Posts: 346
Re: Search functionality
becky wrote:
dps wrote:

Why don't we have a search capability on the site.  I'm used to finding a search box on sites.  ... dons

There used to be a search box on this site.  And, it was quite useful.  Hopefully, the disappearance is only temporary.

I wish I could help you find the derivatives table, but I don't remember seeing it.

becky

Please read posts 36-37, 39, and 66 on this thread.
http://www.peakprosperity.com/comment/48500#comment-48500

Ron

Farmer Brown's picture
Farmer Brown
Status: Martenson Brigade Member (Offline)
Joined: Nov 23 2008
Posts: 1503
Banks not looking that healthy at ALLL

From Nate's blog (more neck-scratching charts)

http://economicedge.blogspot.com/2009/08/st-louis-fed-charts-banks-not-l...

St. Louis Fed Charts – Banks Not Looking that Healthy at ALLL…

When a banks’ loans begin to non-perform, they begin to eat into their capital reserves. Each banks’ Board of Directors is responsible to assess their reserves and make certain that they comply with legal and accounting requirements and, of course, they are certainly free to maintain standards that are higher than minimums.

The Fed tracks the banks’ Allowance for Loan and Lease Losses (ALLL) and produces charts showing ALLL versus NONPERFORMING loans. A ratio of 100 would mean that all the banks in that size have ALLLs that exceed their nonperforming loans – a condition of health. The lower the ratio number, the less healthy the banks are for that size stratum. The banks are complaining about arbitrary rules regarding ALLL, to learn more here is an article from July of this year; Banks' loan loss reserves are lagging behind delinquent loans… (site will only let you view article once w/o login).

The Fed groups banks into those with ASSETS less than $300 million, those with assets $300M to $1B, those $1B to $20B, and those $20B and Higher. Of course, you and I don’t know how those “assets” are valued or by who. That’s where Enron accounting mark-to-model accounting standards come in – thus the charts below are likely indicating a false sense of health, if you can call them healthy at all. Also keep in mind that there are now millions of home owners underwater on their loans, and many commercial real estate loans are facing the same fate. As asset deflation drives prices lower, any hiccup in income drives those loans into the nonperforming category. Let’s examine the small to medium size ($300M to $1B) and the large banks above $20B…

 

Jeff Borsuk's picture
Jeff Borsuk
Status: Silver Member (Offline)
Joined: Jul 25 2008
Posts: 150
Re: Daily Digest - August 29

Hi Davos,

thanks again for all you do!

Here's the latest ICN video:

Jeff

 

 

 

Farmer Brown's picture
Farmer Brown
Status: Martenson Brigade Member (Offline)
Joined: Nov 23 2008
Posts: 1503
Something big brewing?

This guy's been right before.

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