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Daily Digest - Feb 25

Wednesday, February 25, 2009, 8:23 AM
  • The "Trashout" Squad
  • Japan Exports Fall By 46% in January, Producing Record Trade Deficit
  • When Giants Fail, Bloomberg Video
  • Credit contracts as government dissembles
  • White backs off 'credit enhancement' with tax dollars
  • Stimulus Watch (Hat Tip DJHester1940)
  • Do Not Resuscitate (Hat Tip Ernie)
  • U.S. to Get Bank Ownership Stakes Only as Losses Rise
  • Consumer Confidence
  • S&P/Case-Shiller Home Price Indices
  • Shiller: Stocks not yet cheap enough for me 
  • Commercial Real Estate Down Even More Than Residential
  • Brown: World needs 'global New Deal' (Hat Tip PineCarr)
  • Russian economic collapse
  • Tumbling in the East
  • Gold, George Gero, Bloomberg Video
  • The Gold Rush: Don't Get Burned (Hat Tip Suzie G.)
  • Global Downturn in Graphics (Hat Tip Maveri)
  • Powerful Agent's Blunt Warning About Future of the N.B.A. (Hat Tip Zombie210)
  • Law Would Allow Chicken Raising In Back Yards (Hat Tip James 705ca)
  • Backyard Chickens
  • Analysis and Discussion with Majority Leader Sen. Henry Reid (D) (Starting Bell) 

Economy 

The "Trashout" Squad

Japan Exports Fall By 46% in January, Producing Record Trade Deficit

Japan has been hit by a double-whammy: the global fall in trade, made worse by its (formerly) rising yen.

While deteriorating conditions in China generally get more media attention, the falloff in Japan is stunning and serious. Japan has spent more than a decade stagnant, but the overall growth figures mask the fact that the domestic economy contracted, while the export sector exhibited good growth.

The export plunge (December's results horrid too, a 35% fall in exports), means that Japan's only engine of growth has gone into stall. China, by contrast, is not as dependent of trade for its overall performance as is popularly believed (commercial real estate and infrastructure spending have also been important sources, although CRE has taken a dive too).

The fact that Japan is now running trade deficits also means they will not be accumulating foreign exchange reserves, specifically buying Treasuries (Japan could still buy Treasuries to lower the value of its currency, but the terrible economic news has already put the yen on a downward path).

From Bloomberg:

Japan's exports plunged 45.7 percent in January, resulting in a record trade deficit, as recessions in the U.S. and Europe smothered demand for the country's cars and electronics...

Gross domestic product shrank at an annual 12.7 percent pace last quarter, the most since the 1974 oil shock, and economists predict the slump will drag into this quarter. Toyota Motor Corp., Sony Corp. and Hitachi Ltd. -- all of which forecast losses -- are firing thousands of workers, heightening the risk the recession will deepen.

"The drop in exports is unbelievably bad," said Yasuhide Yajima, a senior economist at NLI Research Institute in Tokyo. "The pressure on companies to cut jobs and investment is rising and that will make the recession deep and protracted."...

Japan's economy, the world's second largest, may shrink a record 4 percent in the year starting April 1, faster than this year's projected decline of 2.9 percent, according to the median estimate of 15 economists surveyed by Bloomberg News. The worst contraction to date was fiscal 1998's 1.5 percent drop.

When Giants Fail, Bloomberg Video  

Credit contracts as government dissembles 

Credit contracts as government dissembles 

tim duy notes the continuing collapse of consumer credit in the face of all efforts to halt it.

American Express Co., the largest U.S. credit-card company by purchases, is paying some cardholders $300 each to close accounts so the lender can reduce the risk of defaults as the recession deepens. ...

"What AmEx is trying to do is move to the front of the line in terms of getting paid back" by customers who owe debts to multiple lenders, said Michael Taiano, an analyst at Sandler O'Neill & Partners with a "hold" rating on the company. "They clearly grew loans faster than their competitors in the years leading up to this financial crisis."

American Express was a recipient of TARP funding, albeit a "nominal" $3.39 billion. What makes this interesting is that not only is American Express not expanding lending - the selling point of the original TARP proposal - they are using the funds (money is fungible) to explicitly contract lending. Such a vivid illustration of the industry's challenges.

but the really critical commentary illustrates the massive change in conditions that is now evident in the economy.

And those challenges are only building. As the US government is goading investors with a line in the sand, consumer defaults are swelling:

Consumers are falling behind on credit-card payments as U.S. unemployment reached 7.6 percent last month, the highest rate since 1992.

This is just consumer debt; commerical debt pressures, including real estate, are building as well. With the situation rapidly deteriorating, the anticipated stress tests look like a smoke screen to buy time in yet another emphemeral effort to restore the elusive confidence that policymakers hope will magically restore the system.

Whatever news comes out of Washington regarding the plan of the day for the banking system, I hope one thing is soon made clear to the public - fixing the financial system is not the same thing as expanding lending. We are way past that point; you can't fix the system with more bad loans. If Treasury Secretary Geithner tries to sell his plans as the solution that will revive credit growth, I suspect he will further test the already strained credibility of the government. A more honest approach: We are simply trying to prevent the financial system from outright collapse.

indeed the government looks increasingly ineffectual before the scale of the disaster underway. bank stress tests are, as yves smith says again, more information dissemination than information gathering -- the government along with everyone else well knows these banks are as f*&^%$d as the day is long. the only point of conducting conspicuous but obviously sham tests would seem to be to set the stage for some remotely credible propaganda. the ever-less credible variety is flooding out of treasury on a daily basis now -- here's today's dose -- as it becomes ever more apparent that the government is just exactly the deer in the headlights that michael pettis describes.

Not only am I pessimistic, then, about Chinese policymakers' willingness to confront reality, but my trip to Washington also left me very worried about US policymakers. ... my great hope has been that the new US administration surges forward and begins to design not just a short term solution that addresses the current collapse ... but also a longer term plan about what the new institutional framework will look like. But I don't think this is happening.

Many people I spoke to last week were really bewildered by China's role, and although many of them were extremely sophisticated in their understanding, they gave me the impression that policymakers are going through an almost existential crisis and have lost all confidence. The world needs US leadership more than ever, and the US is in a very strong position to provide it ... [but] This seems to be something that not many people in Washington believe. The lack of confidence is so deep that several times I heard people refer knowingly to the Chinese fiscal stimulus (yes, that vague, risky, and hard-to-understand stimulus package) as the "gold standard" of economic stimulus packages. Gold standard? Really? The only way this can be true is if every other stimulus package in the world is total garbage. Perhaps it is.

White backs off 'credit enhancement' with tax dollars 

Mayor Bill White this afternoon announced that a plan for the city to pay off some debts for first-time home buyers has been pulled from tomorrow's City Council agenda. 

Stimulus Watch (Hat Tip DJHester1940)

Do Not Resuscitate (Hat Tip Ernie) 

Note to economics writers: your beloved free market is dead. Now tell us the real story about the global financial crisis, writes Alex Mitchell 

U.S. to Get Bank Ownership Stakes Only as Losses Rise 

Feb. 24 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke rejected the idea that officials plan to use reviews of banks' balance sheets as a pretext for government takeovers of the nation's largest lenders. 

The Treasury will buy convertible preferred stock in the 19 largest U.S. banks if stress tests determine they need more capital to weather a deeper-than-forecast recession, Bernanke told lawmakers in Washington today. The shares would be converted to common equity stakes only as extraordinary losses materialize, he said.

Consumer Confidence 

S&P/Case-Shiller Home Price Indices

Shiller: Stocks not yet cheap enough for me 

CommercialReal Estate Down Even More Than Residential

Brown: World needs 'global New Deal' (Hat Tip PineCarr) 

The world needs a "global New Deal" to haul it out of the economic crisis it faces, Prime Minister Gordon Brown of the United Kingdom said Sunday. 

Gordon Brown addresses a press conference following a G20 preparatory meeting in Berlin, Sunday.

"We need a global New Deal -- a grand bargain between the countries and continents of this world -- so that the world economy can not only recover but... so the banking system can be based on... best principles," he said, referring to the 1930s American plan to fight the Great Depression.

Brown was speaking as the leaders of Europe's biggest economies met to try to forge a common position on the global financial crisis ahead of a major summit in London in April.

French President Nicolas Sarkozy said the world's response to the global financial meltdown had to be profound and long-lasting, not just tinkering around the edges.

Russian economic collapse

Tumbling in the East 

The broad swath of land from the Baltic to the Black Sea and into the Russian heartland constitutes what is often called Emerging Europe. Over the last few weeks, this area caught the attention of the financial press due to rising concerns that the earlier build-up of external debt is beyond the region's means of repayment -- a factor that could have a wider ripple effect into Western European banks and through them into those economies and the world at large. 

Gold, George Gero, Bloomberg News 

The Gold Rush: Don't Get Burned (Hat Tip Suzie G.)

Global Downturn in Graphics (Hat Tip Maveri)

Powerful Agent's Blunt Warning About Future of the N.B.A. (Hat Tip Zombie210) 

David Falk speaks in adages and anecdotes, every catchphrase and tale conveying a lesson from nearly four decades as an elite N.B.A. agent. The stories come in rapid-fire fashion, their themes accentuated by an All-Star cast of characters, including Michael Jordan, Patrick Ewing and David Stern. 

Law Would Allow Chicken Raising In Back Yards (HatTip James705ca) 

The Portland City Council on Wednesday will take up a proposal that would allow people to keep as many as six hens on their property.
South Portland removed legal barriers to backyard chickens in 2007 and Falmouth did the same last fall. Biddeford and Westbrook also allow the raising of chickens for personal use. 

The economic slump and the desire for locally grown food has led to a revival in raising chickens, said Clint Farnham, manager of Paris Farmers Union in Portland. He said the store sells a ton of chicken feed every week.

Backyard Chickens 

Energy 

Analysis and Discussion with Majority Leader Sen. Henry Reid (D) (Starting Bell)

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43 Comments

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

mcq-escher-hands2

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Re: Daily Digest - Feb 25

It really impresses me how callous and unimaginative the trashout squad people are. Here's an idea. Instead of throwing really valuable stuff in the dumpster, sell it. Alternatively, they could be decent human beings and give it away to needy people. Isn't that profound?

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Re: Daily Digest - Feb 25

The City of Longmont (CO) passed an ordinance last night allowing citizens up to 4 chickens. Permit is $30.

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Re: Daily Digest - Feb 25

Hello JHelge:

Isn't that sad.


Today there was a report on home sales:
  1.  There is like 10 months inventory of on the market homes http://www.bloomberg.com/apps/news?pid=20601087&sid=aH3f8X2tkvWQ&refer=home
  2. Then you take into account the vacant inventory, of which a lot of this will go to http://www.bloomberg.com/apps/news?pid=20601087&sid=aKufqJK9j1cY&refer=home 
  3. In my book that is 24 million 
  4. And then we have "wave 2" coming http://www.cbsnews.com/video/watch/?id=4668112n 
 
I don't understand the rush to fill up the landfill. And it must be really bad when they leave if they are leaving everything. To me that says they have exhausted all monies and they don't have enough for a truck or storage.
 
Sad. 
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Mike Pilat
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Re: Daily Digest - Feb 25

I enjoyed this quote from the gold article:

Quote:

From a cost perspective, there are far more efficient ways to buy gold
than coins or bars, where uncertainty about the size of markups is
compounded by shipping costs, says Leonard Kaplan, president of
Prospector Asset Management in Evanston, Ill. "The alternatives are so
much better and so much safer. You can either buy futures or ETFs.

Seems like this is a perfect example of mixing beliefs, opinions, and facts...I remain less than convinced.

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Re: Daily Digest - Feb 25

Ron Paul to Bernanke: You Can't Re-Inflate the Bubble

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Re: Daily Digest - Feb 25

" I don't understand the rush to fill up
the landfill. And it must be really bad when they leave if they are
leaving everything. To me that says they have exhausted all monies and
they don't have enough for a truck or storage.   Sad. "

I suspect it's all stuff bought on plastic they don't 'own' anyway..... 

Mike 

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Re: Daily Digest - Feb 25

Short on cash, some businesses turn to bartering

Quote:

Short on cash, some businesses turn to bartering


Published: February 23, 2009


Paula Chapman has seen the economy take its toll on the printing business she and her husband run out of their south Charlotte home. But that hasn't stopped them from dining out or even splurging on expensive filet mignons as holiday gifts.

Why? Because they barter.

"The cash business has been really, really slow," says Chapman, 56, who belongs to two barter exchanges. "So it's trade that has kept us at least working -- and our brains functioning."

As the economy continues to sink, more people like Chapman are turning to bartering to keep themselves or their businesses afloat. Chapman, for example, barters printing services for everything from meals to eyeglasses. Networks of all sizes report spikes in interest as cash and credit become increasingly scarce.

"People who didn't give us the time of day in years past are opening their door now," says Bill Bailey, president of the Charleston-based Barter Brokers International, one of many for-profit exchanges.

"When the economy's doing well and people are slammed with cash, they don't need us. All we are is a different currency."

... 

 

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dps's picture
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Re: Daily Digest - Feb 25

@markf57

Hey Mark, I'm in Longmont.  I'd like to link up with you.  Call me at 303-684-3353, my work phone.  Thanks ... Don

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Re: Daily Digest - Feb 25

We bought all our birds from Murray McMurray online, you do 25 at a clip so if you can find a way to divide them up it is great. Cheap, they mail them to you. We used 1/4" galvanized hardware cloth, friends of ours taught us this after their birds became Racoon, Fox and Weasel meat. Take care

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Re: Daily Digest - Feb 25

Help me out here. 

Quote:

Pete Stark, D-Rep. from California: The larger the national debt, the
wealthier we are!

Now a video with Henry Reid, D-Senator from Nevada complaining that Bush left the country $7T more "wealthy" than it was when Clinton left us with an impoverishing surplus.  

These, my friends, are the people who are going to fix the financial mess.  

Oh, and go out and buy lots of stock because the honorable Sen Reid says that if you bet against the success of this plan you'll be sorry.

 

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Re: Daily Digest - Feb 25

Two pieces of interest.

http://adjix.com/x6q2  - more on Japan's situation

Washington Post  - interesting piece on "ecomigrants" - people migrating because of enviromental change - it happens already now, it  is not some distant future.

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Re: Daily Digest - Feb 25

I would suggest ducks as an alternative to chickens.  Khaki Campbell ducks to be specific. 

They lay about as many eggs as a chicken.  They are a bit larger, taste about the same, and are better for making nice moist cakes.  They eat all the weeds out of our garden plot during the winter while fertilizing.  They eat the bugs and slugs in the summer once the garden is established. 

 No need for a roost.  They do just fine in a simple A frame pen that has the requisite vermin and varmint protection along with a tarp over some or all of it, depending on the season, to provide them with some protection from the elements. 

No crowing or clucking, just pleasant quacking.  They do need access to a bucket with water that they can submerge their heads in and will love you dearly if you put a kiddy pool in their area.  Also, they are much easier to herd back into the pen than chickens.  If ours have been free ranging during the day we just call them back to the pen at dinner time and they come...uh, waddling into their pen.

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Re: Daily Digest - Feb 25

cwixom,

What keeps them from flying away?

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Re: Daily Digest - Feb 25

Ducks are great. One problem is that most probably I would not be able to kill one and then eat it. If SHTF so hard butchers disappear I'd have to become a vegetarian. :)

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Re: Daily Digest - Feb 25

Cwixom: Duck eggs are really good, our friends/clients have them and often give us some. Take care

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Re: Daily Digest - Feb 25

Reply to MarkM

They have never exhibited the ability to fly more than a few yards at a time at very low altitude.  We keep them in an area with a 4 foot fence and they have never flown out.  We have some 18 inch protable fencing that we use to keep them out of certain areas and only rarely do they go over that.  Maybe they just have too much ballest on board or they are just too lazy to try.  I'm not really sure but we don't do anything special to keep them grounded. 

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Re: Daily Digest - Feb 25

My sister has had ducks for several years now - they eat the eggs (and the ducks occasionally) and have had good success with them. I think if flying is a problem the wings can be clipped. I don't recall her speaking about it. They do need protection at night from predators.

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Re: Daily Digest - Feb 25

For an added layer of protection for gardens/chickens/ducks etc. Zeraba electric fences are really super. The deer don't like the smell of the Ozone and keep out of gardens and our bear, which I sprayed with pepper spray only came back until I put the electric fence up. Even the Raccoons don't wander in anymore. I'd still build the ducks a hut but for anyone with deer or other issues I can't talk highly enough about the fence. Oh, keeps soliciters out also Surprised

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Re: Daily Digest - Feb 25
Quote:

Oh, and go out and buy lots of stock because the honorable Sen Reid
says that if you bet against the success of this plan you'll be sorry.

Yeah, we are going to be sorry alright!

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Re: Daily Digest - Feb 25

My sister has had ducks for several years now - they eat the eggs (and the ducks occasionally) and have had good success with them. I think if flying is a problem the wings can be clipped. I don't recall her speaking about it. They do need protection at night from predators."

Only clip one wing, then when they try to fly they turn sideways and are unable to control their flight. An old farmer taught me that and it works.

Greg

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Re: Daily Digest - Feb 25
Quote:

Note to economics writers: your beloved free market is dead. Now tell
us the real story about the global financial crisis, writes Alex
Mitchell  

 

Why you cite a guy who is clearly deluded what we had in the US and most of the world over the last decades of the last century was "free market"? How can we speak of a free market when the key component of free market - sound currency - is missing? How can that be called "free market" with all the government intervention? I think he should read up on sound economics starting with von Mises. 

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Re: Daily Digest - Feb 25

Love the backyard chickens, Davos!:)

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Re: Daily Digest - Feb 25

Hello PineCarr:

Thanks. It was of help when we got into it. Marsh and I sat out on the deck of our greenhouse last summer watching our 9 year old herd the chickens and we both said, "Who would have ever have imagined."

The fresh eggs are super. We, of course didn't know anything when we started, and I ordered 10 roosters, one for each hen. It wasn't long after that we ordered 30 more hens and slaughtered 8 roosters. Not an easy job.

Take care 

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Re: Daily Digest - Feb 25
Davos wrote:

We, of course didn't know anything when we started, and I ordered 10 roosters, one for each hen.

 LOL Davos :) too funny!  A big thanks for your daily digest too!

That sounds right Greg - just one wing, the big feathers at the end I think.

Chris

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Re: Daily Digest - Feb 25

Davos,

  We Portlanders have been raisiing chickens on the Eastside for a few years now.  The law just makes it OK. 

Gosh darn I love Portland and can think of no place better to find this new way of life. 

 Davos, so many have said this, I know it is a waste of blogspace...but THANKS.

This place Chris and you have created is my rock of stability and common sense in a crazy world.  

And as we say in Portland, when things get crazy, the crazy turn pro!

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Re: Daily Digest - Feb 25

 

Energy Analysis and Discussion with Majority Leader Sen. Henry Reid (D) (Starting Bell)

My question is how do you create a smart grid with dumb people at the helm?

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Re: Daily Digest - Feb 25

Davos,

You don't need roosters to get eggs, do you. You just get unfertilized eggs, right?

 

SG (aka cityslicker, LOL)

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Re: Daily Digest - Feb 25

Hello SG:

Affirmative. We didn't know that when I placed the order. They should have had a page that says are you sure you want this ratio. Poor hens. Marsh took one look at them and I was dispatched to dispatch 8 roosters. No roosters required, unless you want to do the incubator thing.

BikeMonkey and CB: It is truly a pleasure to contribute to this fine community that Chris has established, all the many hat tips and the comments in the comment section really help me as well. I'm equally as grateful, take care

 

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Re: Daily Digest - Feb 25

I admire you and the rest of the folks here carving new lives, Davos. I don't think i'm going to be able to do it but I enjoy traveling along with you all in spirit.

GLTA.

 

SG

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Re: Daily Digest - Feb 25
Quote:

The IMF, led by Dominique Strauss-Kahn, has the power to raise money on the
capital markets by issuing `AAA' bonds under its own name. It has never
resorted to this option, preferring to tap members states for deposits.

The nuclear option is to print money by issuing Special Drawing Rights, in
effect acting as if it were the world's central bank. This was done briefly
after the fall of the Soviet Union but has never been used as systematic
tool of policy to head off a global financial crisis.

"The IMF can in theory create liquidity like a central bank," said
an informed source. "There are a lot of ideas kicking around."

For now, Eastern Europe is the epicentre of the crisis. Lars Christensen, a
strategist at Danske Bank, said the lighting speed and size of Ukraine's
bail-out suggest the IMF is worried about the geo-strategic risk in the
Black Sea region, as well as the imminent risk a financial pandemic. "The
IMF clearly fears a domino effect in Eastern Europe where a collapse in one
country automatically leads to a collapse in another," he said.

Mr Christensen said investor sentiment towards the region has reached the
point of revulsion. The Budapest bourse plunged 10pc yesterday despite the
proximity of an IMF deal Meanwhile, Standard & Poor's issued a blitz of
fresh warnings, downgrading Romania's debt to junk status, and axing the
ratings Poland, Latvia, Lithuania, and Croatia.

I ran across the above on telegraph.co.uk.  This is just great!!  Now the IMF is going to go into the business of money creation via selling of its own bonds.  Just who do you think is going to be the "full faith" backer of those babies?  Don't know?  Go to your bathroom and look in the mirror and I'm guessing you'll be looking at one of them, then get out your photo album and look at your kids and grand kids because I'm betting they will be on the hook too. 

And just where did they get AAA ratings?  Moody's??? or one of the other high quality ratings groups that have been rating CDSs, CDOs, and SIVs of late.

Being old enough to remember the Cuban missile crisis I seem to recall that "nuclear options" where designed to wipe out things.  They certainly have called it correctly in this case.  

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Re: Daily Digest - Feb 25
Quote:

Pete Stark, D-Rep. from California: The larger the national debt, the
wealthier we are!

 

***Money is Debt***
The dollar is a Federal Reserve NOTE, which is a promise to pay (pay back the dollar plus interest that is). PLEASE SOMEONE TELL ME, IF I LET YOU BORROW A LIGHTER AND I OWN ALL THE LIGHTERS, HOW CAN YOU BRING ME BACK MORE LIGHTER THAN I GAVE YOU TO BEGIN WITH?!?!?!
This is the concept behind our beloved dollar.
 
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Re: Daily Digest - Feb 25

From National Geographic - Roll-Up Solar Cells Printed Like Money

Printing presses normally used to make Australian dollar bills produced solar power cells in a trial near Melbourne last week.

The giant machines arranged and stamped flexible solar panels onto plastic film....

http://news.nationalgeographic.com/news/2009/02/090225-solar-cells-printed.html?source=rss

I'm no finacial expert, but this seems like a more direct and rational approach to problem solving ..... 

 

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Re: Daily Digest - Feb 25

cwixom, your post is similar to many that I read here in that in first expressing disbelief at the crazy measures being proposed to deal with the crisis you then say essentially "why should I or my children suffer for this foolishness?" I would like to answer with an in depth post - not just in an attempt answer this real and important question, but also to help clarify my own thinking on the matter - but find myself short of time to do so... None the less I will type a little.

This is not a US crisis - as the article you posted suggests, the international financial netwok reaches from New York and London and Zurich to Beijing and Sydney and Moscow and Mexico City and Cape Town... Its tentacles reach throughout the developed and developing world. The disease described in the crash course has infected the financial world like a virus. It is systemic, and the disease is advanced. You can see the symptoms everywhere you care to look. Read through these articles for a taste of what is beginning to appear in the fringes of the mainstream press:

We're on the brink of disaster

http://www.salon.com/opinion/feature/2009/02/26/klare/

 

   
Hey Washington - it's a global crisis
By Sam Gardiner

 http://www.atimes.com/atimes/Global_Economy/KB27Dj02.html

Eastern Europe is in crisis. My wife is from Kiev - their currency has lost 50% of its exchange value since August, people are losing work, the price of food is rising, the government is not only corrupt but completely inept/dysfunctional. Ukraine received $16 billion in new loans from the IMF last fall - but it won't be enough, it won't help to fix Ukraine's economy. They will default, I am sure, and their default will put more strain on European banks and the IMF. People have already been in the streets. The previous US administration engaged in a bit of geopolitics there - trying to wrest control of the political structure from Russia. They called it the "Orange Revolution", a victory for "democracy", but it was only about gas pipelines, about energy politics and US "strategic interests". The effect on the Ukranian people? incidental and unimportant. A myopic and self-centered vision that has been repeated over and over in many places around the globe. The heightened tension from this strategy has been tearing the country apart politically and now is contributing its dysfunctional fruit to the financial crisis. I could go on and on with a dozen or a hundred other examples...the middle-east, Pakistan, South and Central America, Africa...

While I understand the anxious apprehension over a "new world order" the fact is we are ALL in this together and it is really more likely that your natural response of "why should I suffer for my neighbor's folly?" will be repeated in many places in the near future than any other sentiment. I think it is not to hard to see where this road will lead when pursued at the level of nation-states. We (the USA) need help and cooperation now - and yet US foreign and domestic policy, financial policy, military policy, energy policy has not been particularly astute or cooperative in nature or effect. We are financially weak yet have overwhelming military power - a dangerous combination. We are part of an inter-dependent world and cannot withdraw from it. The actions taken will have international consequences not only domestic ones - just as the actions elswhere will feed back to us.

President Obama has stepped into a snake pit - danger and crisis waiting in every corner. The tools imediately available are corrupt and inadequate - but immediate action is required. The path choosen so far is just intended to buy (borrow) some time IMO. Making and weilding new tools requires time - how much time is available is an open question...

Why should we suffer for our neighbor's folly? Because we were born into this world at this time in history, because we are human and people are imperfect - no other reason.

CB's picture
CB
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Re: Daily Digest - Feb 25

I should also add that in travels to Mexico, Russia, Japan, and North Africa over the past 30 or 40 years I have always been impressed with the ability of people to adapt and take pleasure in life - what ever their circumstances (our foolishness and bad - sometimes positively evil behavior is taken as a given). Ingenuity, adaptability, intelligence and insight - the are undeniably human traits too.

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gregroberts
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Re: Daily Digest - Feb 25

Some good video's on the Daily Paul today,

http://dailypaul.com/

Greg

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Damnthematrix
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Re: Daily Digest - Feb 25

Actually, I have to agree....  we're raising Muscovies, which are the largest breed of ducks as far as I know...  some people even think they're an unusual breed of geese.

Muscovies will fly, but it's not hard to catch them and cut their wing feathers, totally painless for the bird.  The eggs are delicious, though cracking the shells takes a bit of getting used to, they're almost like thin ceramic with a plastic liner, and I've now found that using a very sharp knife is the way to go.....  otherside you'll break the yolk, OK if you're going to scramble it I guess!

We started with a couple, but now have fifteen ducks, and only six chickens.  Ducks are also really entertaining and have far more character than chooks.  We got them from a friend, and his Muscovies breed like rabbits.  Ours are only just reaching sexual maturity, and we can't wait to have a steady source of meat..

I've also installed this great watering system; our block is quite sloping, and I've installed an two old bathtubs across contour with the drain on the lower side, the ducks will swim in the water, and crap in it as well, as duck do....  I've put a 2 inch ball valve on the drains, and draw off the water now converted to liquid fertiliser to spread all over the garden!  Permaculture at its best, water used twice, waste turned into a resource....

Mike 

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BN37
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Re: Daily Digest - Feb 25

The Trash Out video was interesting and quite timely. A friend from up north has done that kind of work and wants to move here and we'll do it here as partners. Seems like a busy business to be in, but as shown in the video, sometimes melancholy.

In the Panzner video he referred to a five or ten bagger. It was during the PM discussion. What the heck is that?

Thanks in advance.

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capesurvivor
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Posts: 963
Re: Daily Digest - Feb 25

That is a price multiple for an investment (stock), like 5X or 10X  the price you initially paid.

 

SG

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BN37
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Re: Daily Digest - Feb 25

So when he says he expects a five or ten bagger five to ten years down the road he's saying he expects gold to be five to ten times higher than it is today?

capesurvivor's picture
capesurvivor
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Posts: 963
Re: Daily Digest - Feb 25

Yes.

 

SG

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Davos
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Posts: 3620
Re: Daily Digest - Feb 25

Hello BN37 if you purchased in 2003 you'd have gotten 5x from then to present, take care

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