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Daily Digest - Feb 10

Monday, February 9, 2009, 9:53 AM
  • California: Closed for business (Video), Judges back a one-third reduction in state prison population (Hat Tip Propamanda) and Redding City Council votes to lay off Six Cops, 3 Firefighters (Hat Tip GregRoberts)
  • Videos: Nouriel Roubini, Dr. Doom & the Black Swan, Obama
  • Charts:  Lose the News, Same Store Sales, Job Losses in Post WWII Recessions, TARP Review: Taxpayers Paid too Much, Analyst's Recommendations
  • A Look at 10-Year Market Returns
  • Why Analysts Keep Telling Investors to Buy
  • GM, Chrysler May Face Bankruptcy to Protect U.S. Debt
  • Dealing pain to bank bondholders
  • Bad Bank 2.0 Now in Treasury Plan
  • Market Wrap Week Ending 02/06/09 
  • Rising treasury yields
  • Credit agency downgrades ratings for 22 countries 
  • CBOT Debt Service Estimates (Repost) (Table on page 2)
  • Bank Failures May Reach 1,000 on Bad Loans, RBC Says

Economy

California closed for business (Video)

Judges back a one-third reduction in state prison population Saves State $900 Million

Reporting from Sacramento -- A panel of three federal judges, saying overcrowding in state prisons has deprived inmates of their right to adequate healthcare, tentatively ruled Monday that the state must reduce the population in those lockups by as many as 57,000 people. [emphasis added, mine]

Redding City Council votes to lay off Six Cops, 3 Firefighters (Hat Tip GregRoberts) 

The Redding City Council this evening swiftly sliced roughly $3 million from the general fund budget to bring spending into line with steeply-declining revenues.

The council voted to lay off 14 employees and eliminate nine other vacant positions. Those were by far the deepest cuts any Redding council has made in at least two decades. And City Manager Kurt Starman strongly suggested there may be more cuts to come next year.

The council approved the employee and program cuts as recommended by Starman, which included laying off three firefighters and eliminating six positions in the police department. The council also voted to lay off employees in development services, community services, support services and personnel.

Nouriel Roubini, How Long Will Recession Last? (Bloomberg Video)

Predicting Crisis: Dr. Doom & the Black Swan (CNBC Video)

Lose the News (Charts at bottom of page 2)

Third, because news organizations often try to appeal to as many people as possible, they have a disconcerting tendency to catch various trends just as they are peaking. 

Have a look at these charts provided by Neal Frankle, author of Why Smart People Lose a Fortune. They offer a compelling explanation as to why the mainstream media should not be the source of your investment strategy; in fact, they can often be a strong

A Look at 10-Year Market Returns

The New York Times published an article this weekend highlighting that the current 10-year stretch that ended last month was the worst for the S&P 500 in at least the last 82 years. The Times looked at total returns for the S&P 500, and below we provide a similar analysis of the 10-year rolling price change of the Dow Jones Industrial Average going back to 1910. As shown, there have only been four other periods where the 10-year return has been negative, and three of the four periods saw returns float around the negative to flat line for quite some time. While it may have taken "buy-and-holders" a few years to end up making money if they got in early when the 10-year returns went negative, they did end up making money.

Rolling 10-Year DJIA Price Change (Chart (%))

Why Analysts Keep Telling Investors to Buy

Even now, with the recession deepening and markets on edge, Wall Street analysts say it is a good time to buy. 

"Analysts completely missed the boat again with the subprime and credit crises," said Jacob Zamansky, a

At the top of the market, they urged investors to buy or hold onto stocks about 95 percent of the time. When stocks stumbled, they stayed optimistic. Even in November, when credit froze, the economy stalled and financial markets tumbled to their lowest levels in a decade, analysts as a group rarely said sell.

And last month, as the Dow and Standard & Poor's 500-stock index suffered their worst January ever, analysts put a sell rating on a mere 5.9 percent of stocks, according to Bloomberg data. Many companies have taken such a beating in the downturn, analysts argue, that their shares are bound to bounce back.

Maybe. But after so many bad calls on so many companies, why should investors believe them this time?

When Internet stocks imploded in 2000 and 2001, Wall Street analysts were widely scorned for fanning a frenzy that had inflated dot-com shares to unsustainable heights. But this time around, credit rating agencies, mortgage companies and Wall Street bankers have shouldered much of the blame for the Crash of 2008, and few have publicly questioned the analysts who urged investors to buy all the way down.

Analyst's Recommendations, Buy Sell Hold (Chart)

GM, Chrysler May Face Bankruptcy to Protect U.S. Debt

Feb. 9 (Bloomberg) -- General Motors Corp. and Chrysler LLC may have to be forced into bankruptcy by the U.S. government to assure repayment of $17.4 billion in federal bailout loans, a course of action the automakers claim would destroy them. 

U.S. taxpayers currently take a backseat to prior creditors, including Citigroup Inc., JPMorgan Chase & Co. and Goldman Sachs Group Inc., according to loan agreements posted on the U.S. Treasury's Web site. The government has hired a law firm to help establish its place at the front of the line for repayment, two people involved in the work said last week.

If federal officials fail to get a consensual agreement to change their position regarding repayment, they have the option to force the companies into bankruptcy as a condition of more bailout aid. The government would finance the bankruptcy with a so-called "debtor in possession" or DIP loan, a lender status that gives the U.S. priority over other creditors, said Don Workman, a partner at Baker & Hostetler LLP.

"They are negotiating to see if they can reach an agreement," said Workman, a bankruptcy lawyer based in Washington. "If not, they are saying ‘We are pretty darn sure that a bankruptcy judge will allow us'" to be first in line for repayment.

TARP Review: Taxpayers Paid too Much (Chart)

Dealing pain to bank bondholders

I'm counting on delaying the reckoning again, but it cannot last forever. the losses are so titanic in relation to the government balance sheet that treasury yields will rise enough to force monetization from the fed and the full measure of quantitative easing will begin. how that dynamic plays out in the press, public and political system will be interesting.

Same Store Sales (Chart)

Bad Bank 2.0 Now in Treasury Plan

The Obama Administration's bank-bailout plan is now expected to include a new form of "bad bank" that would essentially combine public and private resources to take bad assets from banks' books, sources told CNBC. 

In addition, funding for the bank-rescue plan is unlikely to exceed the $350 billion currently available under the TARP, another source said.

"We don't know yet whether we're going to need additional money or how much additional money we'll need until we see how successful we are at restoring a level of confidence in the marketplace," President Obama said in a news conference Monday night.

A Treasury Department source said the plan was essentially complete with only minor "tweaks" being applied. The plan is being presented to members of Congress this evening, according to sources.

Based on details coming out that presentation, the plan calls for:

Some $100 billion will be committed to new capital injections
Another $100 billion will go to the Federal Reserve's TALF program
And $50-100 billion on housing measures, as expected, according to the source
The package will be unveiled Tuesday by Treasury Secretary Timothy Geithner at 11 am EST

Job Losses in Post WWII Recessions (Chart)

Market Wrap Week Ending 02/06/09

Clearly, something is up with the dollar. Overall, it's in a severe bear market for the last decade. From 2004-2007 interest rates rallied up and the dollar continued down to new lows. 

Starting in mid-2007 rates began to plummet, as low as they could go in late 2008 and earlier 2009, yet the dollar has been rallying strongly since mid-2008. What gives?

Not only is the dollar a very sick puppy, it acts completely schizophrenic as well. Even the Fed admits the dollar has lost 95% of its purchasing power or value since the Fed was created in 1913.

So, why the hell is the dollar rallying? It seems to make no sense. Often times, however, things appear to make no sense, because they are making someone a lot of cents.

Now let's look at some charts of gold in various paper fiat currencies around the globe.

It's simply amazing: gold is making new highs in almost every world currency except the U.S. dollar and the Japanese Yen.

Rising treasury yields

Even a casual market observer like your humble blogger has noticed the dramatic increase in Treasury bond yields from 2.5% on the 30 year bond to over 3.5% in a bit more than a month. (ten-year here via ft) I had assumed that the Fed, at its last FOMC meeting, would shed a bit of light on its December statement, when it said it would use all available means to free up credit markets and was considering buying Treasuries. The latter was particularly credible, since Bernanke has discussed the idea in some of his academic work. 

The long bond, which had fallen from its peak (remember lower prices mean higher yields) but stabilized and rallied a bit right before the January Fed meeting. Not only did the announcement fail to clarify how a Treasury program might work, but the language suggested an intent to focus on instruments other than Treasuries. This seems odd, for as long as the benchmark rate continues to rise, trying to control spreads over it can achieve only so much.

Or maybe the truth has dawned on the Fed: the market is bigger than it is. Even so, it had better learn to bluff better, since Treasury investors, discouraged by the latest announcement, are demanding higher yields.

Credit agency downgrades ratings for 22 countries

Coface, an international credit insurance and credit management services group, yesterday downgraded its ratings for 22 countries and territories, including Hong Kong and Taiwan, while putting the two biggest emerging markets - China and Russia - on its negative watch list for the first time. 

After a strong 5.7 percent growth in 2007 and 6.3 percent growth in the first quarter of last year, Taiwan's economy slowed markedly for the rest of the year, Coface said in a statement.

The slowdown was mainly attributable to a weakening of overseas demand, particularly in China, Hong Kong and above all, the US - Taiwan's main trading partner as it is the ultimate re-export destination for about 70 percent of the nation's shipments to China, it said.

Given tight credit and dim sales prospects, companies have delayed investments, Coface said, adding that this raised risks that the Taiwanese economy could contract this year.

CBOT Debt Service Estimates (Repost) (Table on page 2)

Bank Failures May Reach 1,000 on Bad Loans, RBC Says 

Feb. 9 (Bloomberg) -- As many as 1,000 U.S. banks may fail in the next three to five years, almost double the one-year tally at the height of the saving-and-loan collapse, as losses mount on commercial real-estate loans, RBC Capital Markets analysts said. 

Most of the failures will probably occur at banks with less than $2 billion in assets as their commercial customers default, said Gerard Cassidy, an analyst at RBC, in an interview today.

"There are billions of dollars of losses embedded in the system, and the system has to flush them out," Cassidy said. "The people that are going to take the losses are the taxpayers and bank stockholders, and if regulators say there won't be much loss to taxpayers, they will be lying."

The U.S. seized 534 lenders in 1989, including 327 saving- and-loan associations, during the peak of a crisis among thrift institutions, FDIC data showed.

Obama Says Crisis Calls for More Jobs(WSJ Video)

Obama: This Is No 'Run-of-the-Mill Recession' (WSJ Video)

Germans get by without the euro 

The phenomenon, not seen since the Great Depression, has left experts scratching heads at the Bundesbank. 

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31 Comments

Davos's picture
Davos
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Re: Daily Digest - Feb 10

This was on the front page a non-economic news portal (Drudge)

 

mm.jpg

Also, my apologies, in addition to being spelling challenged I try to type too quickly for someone who is self taught once I leave the 3 main rows it can get ugly. On the 8th I posted this link, I meant to put the 2:15 minute point not the 3:15 minute point.

Electronic Run on the Banks (Hat Tip DB) (Video, Suggest Starting at 2:15 (not 3:15) Minute Point)

Take care

 

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Re: Daily Digest - Feb 10

rman3388l.jpg

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propamanda
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Re: Daily Digest - Feb 10

This is old news.

Am I the only one who never heard about this?

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a59cPqB1OsQw

"Dec. 30 (Bloomberg) -- Gulf Arab leaders approved an agreement to create a central bank and single currency for the region to boost trade and strengthen monetary policy. 

...  A single currency would allow the Gulf states to stop pegging their currencies to the dollar and implement independent monetary policy. All of the GCC states except Kuwait peg their currencies to the dollar and tend to follow the U.S. Federal Reserve when setting interest rates. The states are looking to issue a unified currency by 2010. "

 

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Mike Pilat
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Re: Daily Digest - Feb 10

Yes, I've heard of the Gulf States' desire for a new currency. Rumor has it they want to back it with gold. You better believe this is high on the radar screen for our state department (and military). Demanding gold for oil would pretty much ruin the importation party we've had for decades. I think our military might could prove too tempting to use. Surely with all our firepower it would be easier to rattle our sword some more rather than just knuckle under and ship out gold. Ouch.

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Mike Pilat
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Re: Daily Digest - Feb 10

interesting, isn't it, how the markets seem to crash hard every time a new "rescue" package is announced? http://www.google.com/hostednews/ap/article/ALeqM5i5TtajgUpSm7KY5jf-lCJG...

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Re: Daily Digest - Feb 10

If countries are thinking of going to gold why is it still easily available and relatively cheap in the US (relative to what I hear it might go up to)?

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Mike Pilat
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Re: Daily Digest - Feb 10

I see it still in the rumor phase now, but I do know that China and Saudi Arabia are buying gold. Certainly in a post peak oil world if I were an oil exporter I would not accept paper promises for oil. Period.

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Re: Daily Digest - Feb 10

According to Sen. Charles Schumer the "American people don't really care" about the pork in the Stimulus Package.

 

It's short and sweet -16 sec.

Maybe I should buy guns and ammo with my stimulus check and go find my own pork!   

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Re: Daily Digest - Feb 10

I wonder what the intrinsic metal value (in percentage terms) is of the brass (copper and zinc alloy) in ammunition?

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Mike Pilat
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Re: Daily Digest - Feb 10

The Fed is being forced to review disclosure requirements. I wonder what the real behind the scenes plan is?

http://www.bloomberg.com/apps/news?pid=20601087&sid=adhpRsPpINDA&refer=home

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Re: Daily Digest - Feb 10

wouldn't you know what appeared on the front page of Bloomberg. Ammo shortages: http://www.orlandosentinel.com/news/local/orl-bullets1009feb10,0,2201778...

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Re: Daily Digest - Feb 10

Just one comment on the "Job Loses in Post WWII Recessions" link.  The y axis is a total number of job losses.  However, this isn't a very fair way to compare job losses this time around with other recessions.  The work force is larger now than it has been previously so a better way to compare the job losses would be with a percentage.

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Re: Daily Digest - Feb 10

As far as the price of gold and silver go, dickey45, my take is that the various governments and banking cartels are doing everything they can to keep the prices down -- from simple shorting to more nefarious means -- because of the symbolic potency that a huge gold/silver bull run would carry. They know it's a barometer and therefore they have to keep it under control.

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Re: Daily Digest - Feb 10
Mike Pilat wrote:

interesting, isn't it, how the markets seem to crash hard every time a new "rescue" package is announced? http://www.google.com/hostednews/ap/article/ALeqM5i5TtajgUpSm7KY5jf-lCJG...

You mean like this Mike:

 

Market expected to follow Wall St dive

The Australian share market is expected to open
sharply lower this morning after Wall Street nose-dived in response to
the US Government's bank rescue package.

Ahead of the close at 8:00am AEDT, the Dow Jones Industrial Average was down almost 5 per cent to 7,884.

The tech-heavy Nasdaq has lost 64 points to 1,528.

CommSecc equities economist Savanth Sebastian says the massive
losses on Wall Street could see Australian stocks lose as much as 3 per
cent when trading starts this morning.

"Certainly banking stocks will see some significant weakness, we're
looking at Westpac, which trades over in the US, and their shares were
down in the vicinity of around 8 per cent, and in particular the
weakness in US markets has reverberated in commodity prices," he said.

"We've seen the likes of aluminium, copper, nickel down
significantly. It doesn't bode well for even our resources sector
today.

"It's likely that we will see some significant weakness."

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mainecooncat
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Re: Daily Digest - Feb 10

Watching the CNBC video with Roubini and Taleb was fascinating. I'm not familiar with CNBC, so even though it's an American news network I was still stunned by the ignorance and crudeness displayed by the self-important hosts and questioners.

Instead of taking these two men seriously -- as they should be considering both their track records of thoughtful and prescient analysis --  they mock them from the outset with cute nicknames, constantly interrupt them and more or less en masse (hosts talking over hosts at times) almost shout these men down simply for challenging the orgiastic American orthodoxy. These people and their considerable ilk are clearly incapable, almost to the point of pathology, of imagining an alternative.

Every questioner is essentially saying, "I don't want to know why what's happening is happening, if it will happen again, or if it is likely to happen again how we could prevent it. I just want to know when I can return to the irresponsible, immature orgy that is my life."

Learning and self-reflection is anathema to these people.

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Re: Daily Digest - Feb 10

Hello MaineCoonCat:

We finally are over the cold snap down here in VA. Don't know how you do it up there, don't know how I lived almost 15 years outside of Syracuse N.Y..

Anyway I was wondering if someone was going to mention this, really glad I'm not alone. I Iiked the "bottom" bit the female anchor was going on about. Bottom?!?!!? Just wait.

The other interview (Bloomberg) with just Dr. Roubini was more civil, but even she kind of mocked him about shimmers of optimism. Personally, I just think the guy is a realist, same with Taleb.

Wish I was wrong, but I think Dr. Doom and the Swan will have the last laughs and I'd rather have a name like that Swan and Dr. Doom then "momo".

Hope you stay warm up north and take care 

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Re: Daily Digest - Feb 10

Germans get by without the euro 

The phenomenon, not seen since the Great Depression, has left experts scratching heads at the Bundesbank.

 

from "The restaurant at the end of the universe" page 176 :
He rose to his feet.
"If," he said tersely, "we could for a moment move on to the subject of fiscal policy ..."
"Fiscal policy!" whooped Ford Prefect, "Fiscal policy!"
The Management Consultant gave him a look that only a lungfish could have copied.
"Fiscal policy ..." he repeated, "that is what I said."
"How can you have money," demanded Ford, "if none of you actually produces anything?  It doesn't grow on trees you know."
"If you would allow me to continue ..."
Ford nodded dejectedly.
"Thank you.  Since we decided a few weeks ago to adopt the leaf as legal tender, we have, of course, all become immensely rich."
Ford stared in
disbelief at the crowd who were murmuring appreciatively at this and
greedily fingering the wads of leaves with which their track suits were
stuffed.
"But we have also"
continued the Management Consultant, "run into a small inflation
problem on account of the high level of leaf availability, which means
that, I gather, the current going rate has something like three
deciduous forests buying one ship's peanut."
Murmurs of alarm came from the crowd. 
The Management Consultant waved them down.
"So in order to
obviate this problem," he continued, "and effectively revalue the leaf,
we are about to embark on a massive defoliation campaign, and ... er,
burn down all the forests.  I think you'll all agree that's a sensible
move under the circumstances."
The crowd seemed a
little uncertain about this for a second or two until someone pointed
out how much this would increase the value of the leaves in their
pockets, whereupon they let out whoops of delight and gave the
Management Consultant a standing ovation. 
The accountants among them looked forward to a profitable Autumn.
"You're all mad," explained Ford Prefect.
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Re: Maincooncat, post $15 and Davos, post #16

I can't tell you two how glad I was to see your comments re: CNBC with Roubini and Taleb.  If these idiot-show-hosts knew anything, they wouldn't be asking the questions - they'd be the invited guests. They're not, but this never stops them from trying to force the interview to go the way the want it to go, so they can feel good about the sound of their own voices. 

And, if they had any professionalism at all, they would know, like the real professionals, i.e - Charlie Rose, Bill Moyers and the like, that your job is not to be personally heard, but to serve as the catalyst to help your guests be heard.  I get so sick of this kind of interviewing on FOX News, CNN and MSNBC.  Everybody on FOX, as well as Chris Matthews on MSNBC and Wolf Blitzer on CNN are all master interupters.  They all act like their next question is more important than their guests last answer. And its always more important to "wrap it up" and get to the next story, no matter how ridiculous or trivial it is, than to allow their knowledgeable guest to complete his thought.

I sure wish there was a legitimate "business news" network, and a legitimate "political news" network, where one could tune in and hear the thoughts of people like Roubini, Taleb, Celente, Schiff and others who have been so "right-on" with their predictions, and still are.  But I guess that is too much to ask, as long as our corporate news media is so tied to our corporate/financial/government/military globalization complex.  

I wish we could all go together and buy us a network, and put Chris in charge of guest interviews. 

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Re: Daily Digest - Feb 10

RE: The Roubini/Black Swan interview - It's simply amazing the disconnect between the media and reality, and as we all know here, the more gloom and doom ahead. If I remember correctly, CNBC was celebrating each 1,000 point move in the Nasdaq during the tech bubble with a cake. You can only shake your head in disbelief and move on...and let them choke on their cake!

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Re: Daily Digest - Feb 10

Bullion sales hit record in rush to safety

 

Quote:

The US Mint sold 92,000 ounces of its popular American Eagle coin last
month, almost four times that which it sold a year ago and more than it
shipped during the whole of the first half of 2007.

http://www.ft.com/cms/s/0/359da604-f6d4-11dd-8a1f-0000779fd2ac.html?ncli...

 

 

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Re: Daily Digest - Feb 10
mainecooncat wrote:

Watching the CNBC video with Roubini and Taleb was fascinating. I'm not familiar with CNBC, so even though it's an American news network I was still stunned by the ignorance and crudeness displayed by the self-important hosts and questioners.

Instead of taking these two men seriously -- as they should be considering both their track records of thoughtful and prescient analysis --  they mock them from the outset with cute nicknames, constantly interrupt them and more or less en masse (hosts talking over hosts at times) almost shout these men down simply for challenging the orgiastic American orthodoxy. These people and their considerable ilk are clearly incapable, almost to the point of pathology, of imagining an alternative.  

Yikes maine!!

Welcome to our world. 

We have CNBC on at home but we rarely actively watch it.  Despite what the network wants viewers to believe, they aren't a credible information service - they are an entertainment show.  99.9% of the yapping is white noise.  On rare occasion though, a nugget will fall out - generally in the quiet moments going into and coming out of commercial breaks  - not during the theatrics and sophomoric antics.  Several years ago they had a guest on who was talking about the telltale signs of a recession - the hosts were far more polite that time.  As the segment wrapped up, Joe Kernan asked an open question about what companies would be recession-proof.  Just before the commercial break, he answered his own question with a comment along the lines of "Medical diagnostic companies are recession proof.  People still get sick during recessions and are going to need medical tests."  There were numerous profitable trades in that sector (Quest Diagnostics - DGX) over the next few months - just because of some quietly spoken nugget of info made amidst the cacophony that is the norm.

All you have to do is figure out what .1% of the noise to listen to.

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Re: Daily Digest - Feb 10
Dogs_In_A_Pile wrote:

We have CNBC on at home but we rarely actively watch it.  Despite what the network wants viewers to believe, they aren't a credible information service - they are an entertainment show.  99.9% of the yapping is white noise.

I couldn't agree more. I'd have more luck finding an oil field with a dowsing rod than I would learning about our world from the likes of the mainstream media.

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Re: Daily Digest - Feb 10

They will never choke on their cake as long as they have their kool aid.

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CNBC video with Roubini and Taleb

The asinine behavior of the Bubblevision [cnbc] commentators seems to be an American thing. [I am an American]

For many years, I have spent a few months overseas, in Saipan. CNBC is on the cable, tho an international version. The hosts from Australasia, Asia, and Europe come off much more civil and open minded. The Americans seem to have huge egos getting in the way of possibly helpful information.

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Re: CNBC video with Roubini and Taleb
Denny Johnson wrote:

The asinine behavior of the Bubblevision [cnbc] commentators seems to be an American thing. [I am an American]

For many years, I have spent a few months overseas, in Saipan. CNBC is on the cable, tho an international version. The hosts from Australasia, Asia, and Europe come off much more civil and open minded. The Americans seem to have huge egos getting in the way of possibly helpful information.

Damn, you make a good point. Heavy psychological warfare in America is used in place of the physcial bludgeon.

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Re: Daily Digest - Feb 10

Book Publisher or Prefrontal Labotomy Pusher

Makes cable look smart

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Re: Daily Digest - Feb 10

They sound like ADHD children on their sixth cup of coffee -- by 7 a.m. It is just cackling and noise and loudness. We're used to it, we think it is normal, because it's all there is.

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Re: CNBC

My suggestion is that you check out the BBC website. It's really nice to see their business commentators calling a spade a spade...

I see such a difference in the approach they have, from the North American media. There they are actually using the D word (Gasp!).

Here at home we still keep hearing people calling this a "crisis of confidence" - Like, let's forget all our debt, go shopping some more with borrowed money, and all will go back to "normal", simple... Scary!!!

England is pretty close to becoming "Iceland, The Sequel", but at least their media sees it and is honest about it. Hopefully people will act accordingly and brace for the hard times.

And, Yup, Gold is looking really good right now.

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Daily Digest - Feb 10

Not only that, I'm seeing rumors floating around that Ben Bernanke WON'T be doing QE?!?!

http://blogs.wsj.com/economics/2009/02/11/fed-looking-unlikely-to-buy-treasurys/

 

Inflate or die was their motto, maybe they figured out that would be the death of the bond/dollar so they are just going to leave off the inflate or part of it.

 

 

Dogs_In_A_Pile's picture
Dogs_In_A_Pile
Status: Martenson Brigade Member (Offline)
Joined: Jan 4 2009
Posts: 2606
Re: Daily Digest - Feb 10

Davos -

If memory serves me correctly you are in Virginia right?

Come on over.

http://www.peakprosperity.com/forum/join-virginia-battalion-martenson-brigade/13093

caroline_culbert's picture
caroline_culbert
Status: Platinum Member (Offline)
Joined: Oct 2 2008
Posts: 624
Re: Germans get by without the euro-- yah!

I like this idea; from http://www.telegraph.co.uk/finance/2802861/Germans-get-by-without-the-euro.html

"The idea stems from the century-old writings of Silvio Gesell, a German economist who believed that interest and rent charged on capital is pernicious. He argued that usury aggravated economic downturns because the wealthy began to horde cash."

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