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Daily Digest - Feb 15

Saturday, February 14, 2009, 5:12 PM
  • SEC?! Took 5 Minutes to figure it out
  • Markopolos Letter, 2005 (Repost)
  • Big Numbers (Hat Tip Patrick Brown)
  • Official Unemployment Rate, BLS Broadest and SGS Alternate (Shadow Stats)
  • Geithner Reassures G-7 on Bank Plan, Is Urged to Act (Update1) 
  • Laid-Off Foreigners Flee as Dubai Spirals Down
  • GM to Offer Two Choices: Bankruptcy or More Aid
  • Financial Sense News Hour February 14, 2009
  • Obama Presidential Address - 2/14/2009 (Video)
  • Recovery.gov 

Economy 

SEC?!?! Took 5 Minutes to figure it out

Big Numbers (Hat Tip Patrick Brown) 

"The federal government is bankrupt," Williams told WND. "In a post-Enron world, if the federal government were a corporation such as General Motors, the president and senior Treasury officers would be in federal penitentiary." 

MarkopolusLetter, 2005 (Repost)

Official UnemploymentRate, BLS Broadest and SGS Alternate (Shadow Stats)

Geithner Reassures G-7 on Bank Plan, Is Urged to Act (Update1) 

Clear Answers 

Geithner answered questions from G-7 officials "very clearly," Finance Minister Christine Lagarde told reporters in Rome today. "On paper it looks great," said Lagarde. "The essential thing is now to implement it."

Bank of Italy Governor Mario Draghi was the most critical, saying the U.S. is "lagging in the implementation of the package."

More details on a public-private partnership to buy banks' illiquid assets will be delivered in coming weeks, a U.S. official said in Rome on condition he not be named.  

Laid-Off Foreigners Flee as Dubai Spirals Down 

"I'm really scared of what could happen, because I bought property here," said Sofia, who asked that her last name be withheld because she is still hunting for a new job. "If I can't pay it off, I was told I could end up in debtors' prison." 

GM to Offer Two Choices: Bankruptcy or More Aid 

General Motors Corp., nearing a federally imposed deadline to present a restructuring plan, will offer the government two costly alternatives: commit billions more in bailout money to fund the company's operations, or provide financial backing as part of a bankruptcy filing, said people familiar with GM's thinking. 

The competing choices, which highlight GM's rapidly deteriorating operations, present a dilemma for Congress and the Obama administration. If they refuse to provide additional aid to GM on top of the $13.4 billion already committed they risk seeing an industrial icon fall into bankruptcy. 

Financial Sense News Hour February 14, 2009 (3rd Hour, Part 1, 01:35 Minute Point Insolvent, 23+/- Minute Point, Currency Devaluations, 34+/1 Minute Point Growing Deficit Going Parabolic)

Oboma Presidential Address - 2/14/2009

Recovery.gov

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10 Comments

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Daily Digest - Feb 15

deficittwo.jpg

(Hat Tip Patrick Brown)

 

fujisan's picture
fujisan
Status: Gold Member (Offline)
Joined: Nov 5 2008
Posts: 296
Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Daily Digest - Feb 15

Hello FujiSan:

Maybe Moody's is getting better at the rating thing, wonder if Spain will be next? Moody's AAA Breakdown (Chart)

Take care 

 

fujisan's picture
fujisan
Status: Gold Member (Offline)
Joined: Nov 5 2008
Posts: 296
Re: Daily Digest - Feb 15

Hi Davos,

I remember that chart now, thanks.

I won't bet which country is going to default next or where 2 digits inflation or hyperinflation might occur next, but we won't have to wait long I guess.

If I remember well this past week, there were quite a lot of Theasuries auctions both in US and in Europe. Any pointers on how it's going?

At the G7 summit, the ECB (Eurozone) will probably lower it's rate soon, and/or possibly go in the 'quantitative easing' madness (now called 'credit easing').

Also at the G7, the italian finance minister, Giulio Tremonti, was promoting a worldwide “legal standard”, but I doubt it has any connection with gold, otherwize he would have called it "gold standard".

The G7 also "recognized" China is an important player. Sure, we all need China to finace all our bailout, stimulus... 

Appart from that, the G7 was just blah-blah-blah without any decision. They'll wait till the G20 in april.

All best

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Re: Daily Digest - Feb 15

I wonder if the irony of the title of this piece is accidental....!  Just think of all those fresh suicide bombers coming online!

Mike

Gaza census shows population explosion

http://www.abc.net.au/news/stories/2009/02/16/2492071.htm?section=justin

A census of Gaza published today shows that the population in the Palestinian territory has risen by almost 40 per cent in the past 10 years, one of the highest growth rates in the world.

The census, which was carried out in 2007, found that the population in Gaza is now more than 1.4 million.

It shows the majority of Gazans - some 68 per cent of the population - remain UN registered-refugees.

With its population estimated to double in the next 20 years, Gaza's economy is hopelessly unfit to provide employment for its residents.

Many factors are responsible for Gaza's impoverishment but the freezing of international funds since Hamas won the 2006 Palestinian elections and then the following year seized full control of Gaza, has worsened the situation.

fujisan's picture
fujisan
Status: Gold Member (Offline)
Joined: Nov 5 2008
Posts: 296
Re: Daily Digest - Feb 15

Ecuador suspends interest payment to mull default - Forbes.com

Ecuador won't pay bondholders $135 million in interest while it decides whether to default on 27 percent of its foreign debt, deemed "illegitimate" by in audit, a top official said Saturday. 

 

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
a sign of things to come....?

From Steve Keen's website... 

I’ve also had a correspondent who is prevented from posting to the blog
by a too-strict Internet censoring policy in the country he’s currently
in. I suggested that perhaps someone on the blog would be willing to
“shadow” for him: i.e., sign on to the blog with an additional alias,
and copy any emails from him as posts to the site.

 http://www.debtdeflation.com/blogs/2009/02/16/out-of-touch-for-a-few-daysblack-swans/

Denny Johnson's picture
Denny Johnson
Status: Gold Member (Offline)
Joined: Aug 13 2008
Posts: 348
Re: Daily Digest - Feb 15

Rep Ackerman's political grandstanding in the 1st video lessens my hope for meaningful reform.

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Daily Digest - Feb 15

Hello Denny:

I'm doing a YouTube spoof on that now...don't know if it will be of good enough quality to post on the DG, but without a doubt, my thoughts exactly. They (govt.)let themselves and the banks go insolvent and then they chastise another lax (ative) body. Madoff might be a crook, but at the very least - he turned himself in and didn't chastise anyone else for what he did.

Take care 

joemanc's picture
joemanc
Status: Martenson Brigade Member (Offline)
Joined: Aug 16 2008
Posts: 834
Re: Daily Digest - Feb 15

RE: SEC smackdown - one thing to consider, if people were to get fired, then they would talk about what really happened behind the scenes because they would be angry that they were fired. BUT, when they are retained with just some "verbal spanking", then they have no reason to talk because they still have a job! I hate to draw the parallel, but I heard the same argument after 9/11 when the fighter planes were not dispatched right away. Was anyone fired or reprimanded over that? If someone was fired, they would be talking.

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