Daily Digest

Daily Digest - July 19

Sunday, July 19, 2009, 10:47 AM
  • BIS, The Central Bank of all Central Bankers: The Central Bank WAS Warned in 2003 (Repost)
  • Daily Show: Financial Guru? (Video)
  • Green Shoots: Less people Googling Depression
  • CBO Director's Blog: Budget Unsustainable
  • Budget Cuts: Low-priority crimes like breaking and entering might not be prosecuted 
  • CalPERS Lawsuit “Just the Tip of the Iceberg” for Rating Agencies (Video)
  • Bank Failure 55
  • Bank Failure 56 and 57
  • "...is what it is'
  • More State Woes, Chart Unemployment "Trust" "Funds"

Economy

BIS, The Central Bank of all Central Bankers: The Central Bank WAS Warned in 2003 (Repost)

I respectfully suggest reading the entire piece.

Daily Show: Financial Guru? (Video)

Green Shoots: Less people Googling Depression

Of all the statistics pouring into the White House every day, top economic adviser Larry Summers highlighted one Friday to make his case that the economic free-fall has ended.

The number of people searching for the term “economic depression” on Google is down to normal levels, Summers said.

Searches for the term were up four-fold when the recession deepened in the earlier part of the year, and the recent shift goes to show consumer confidence is higher, Summers told the Peterson Institute for International Economics.

Summers continued the administration’s push-back against critics of President Barack Obama’s handling of the recession, defending the economic stimulus package against Republicans who have tried to paint the program as a failure because it hasn’t stemmed the unemployment rate.

CBO Director's Blog: Budget Unsustainable

Under current law, the federal budget is on an unsustainable path, because federal debt will continue to grow much faster than the economy over the long run.

 Budget Cuts: Low-priority crimes like breaking and entering might not be prosecuted

Low-priority crimes like breaking and entering might not be prosecuted and the conviction rates will continue to decline if the proposed budget for the Wayne County Prosecutor’s Office is approved, Prosecutor Kym Worthy told commissioners this morning.

“We can’t even cover our courtrooms anymore,” Worthy said in vehemently disagreeing with the $28-million general fund budget proposed for the prosecutor’s office by Wayne County Executive Robert Ficano. “At some point, if the budget continues to be cut, we’re going to have to start making decisions about what crimes we prosecute.”

CalPERS Lawsuit “Just the Tip of the Iceberg” for Rating Agencies (Video)

Bank Failure 55

Bank Failure 56 and 57

"...is what it is'

* 60% probability that the market declines short term (to 800 ), scaring out a lot of chickens before forming the major right side shoulder of an interted H&S bottom with very bullish intermediate term implications. The plan was to be short selected areas to guard against bullish precious metals (mostly gold) positions, and then cover as SPX neared 800. Sounded like a plan but...

* There was the pesky 40% potential for the bulls to put their greed on full display, blow out the shorts and party on, led by Paulson's Plunderers (NYSE: PP). The inverted H&S scenario is now negated and this market is now in the realm of traders and pros who know what they are doing and can be nimble.

More State Woes, Chart Unemployment "Trust" "Funds"

15 Comments

mainecooncat's picture
mainecooncat
Status: Gold Member (Offline)
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Posts: 488
Re: Daily Digest - July 19

Re: Less People Googling Depression

That's because they've moved on to "civilizational collapse."

 

VeganDB12's picture
VeganDB12
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Posts: 740
Re: Daily Digest - July 19

Oh good....Civilization Collapse sounds better anyway. :)

Re:Low priority crimes not prosecuted

Does this mean local justice will rule? Scary thought. I have noticed, in the area where I have my office and near my home in the 'burbs, the police presence is directly related to the net worth of the realtor investors who were building there.  With the real estate collapse they are rapidly disappearing from the "transitional areas".

No layoffs involved. When Trump level (and I mean the real Trump) builders took their marbles and went home after forcing out a bunch of small businesses to make fancy expansions, police suddenly disappeared.  I see it every day I go to work. And it feels less safe though I cannot say there is more crime, just lots of CRE for rent.

Thanks Davos as always,

D

JAG's picture
JAG
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Re: Daily Digest - July 19

 The number of people searching for the term “economic depression” on Google is down to normal levels, Summers said.

Wow, it never occurred to me to use google as a sentiment indicator. My contrarian instincts say that this is an indication that the bounce in the economy has peaked, and that the next leg of the "economic depression" is right around the corner.

What a great find Davos, thank you.

Its time to short the social mood.

 

idoctor's picture
idoctor
Status: Diamond Member (Offline)
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Posts: 1731
Re: Daily Digest - July 19

Re: Less People Googling Depression

That's because they've moved on to "civilizational collapse."

 Maincooncat that is hilarious....thanks for the laugh....it helps. What is sad is they are stretching this far looking at Goolge search trends to find something positive. Why not do something truly constructive & innovating instead? Going to be one long ruff ride IMHO.

I have got to get a whip out on my avatar to get that little tyke to pull that debt ball a little faster LOL. 

CB's picture
CB
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Posts: 365
Re: Daily Digest - July 19

Business as usual...

Quote:

In Washington, One Bank Chief Still Holds Sway

 

Published: July 18, 2009

WASHINGTON — Jamie Dimon, the head of JPMorgan Chase, will hold a meeting of his board here in the nation’s capital for the first time on Monday, with a special guest expected: the White House chief of staff, Rahm Emanuel.

Mr. Emanuel’s appearance would underscore the pull of Mr. Dimon, who amid the disgrace of his industry has emerged as President Obama’s favorite banker, and in turn, the envy of his Wall Street rivals. It also reflects a good return on what Mr. Dimon has labeled his company’s “seventh line of business” — government relations.

The business of better influencing Washington, begun in late 2007, was jump-started just as the financial crisis hit and the capital displaced New York as the nation’s money center. Then Mr. Obama’s election brought to power Chicago Democrats well-known to Mr. Dimon from his recent years running a bank there.

One of them is Mr. Emanuel, who has accepted the invitation to speak to the board pending a review by the White House counsel. The Treasury secretary, Timothy F. Geithner, declined out of concern that he would be seen as too cozy with a company that has numerous business issues before the department, an administration official said.

http://www.nytimes.com/2009/07/19/business/19dimon.html?_r=1&hp

Russ_H's picture
Russ_H
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Re: Daily Digest - July 19
JAG wrote:

 The number of people searching for the term “economic depression” on Google is down to normal levels, Summers said.

 

 

Does he think people have memories like goldfish?. Look at the definition, forget about it seven seconds later and google it again. Desperate optimism.

 

 

idoctor's picture
idoctor
Status: Diamond Member (Offline)
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Posts: 1731
Re: Daily Digest - July 19

Mark Faber.....the system hasn't been cleansed.....

nothing had been solved expect a Total collapse soon

IMO I like his advice on investing in Asia & Gold.

Damnthematrix's picture
Damnthematrix
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Posts: 3998
Re: Daily Digest - July 19

May the contention for electricity supply begin...

Nissan to Build Massive Electric Car Factory in US
Mon Jun 22, 2009 3:25pm EDT

http://www.reuters.com/article/mnGreenAutos/idUS30174958720090622

By http://gas2.org/
By Andrew Williams

Nissan has announced plans to launch the large-scale production of electric cars and batteries in the United States, with a massive 50 billion Yen ($516 million) facility in Smyrna, Tennessee. The site will be capable of knocking-out an impressive 50,000 to 100,000 EVs by 2012, with investment possibly DOUBLING to 100 billion Yen (more than $1 Billion).

The Japanese outfit, fast becoming a forerunner in the race to the mass roll-out of EVs worldwide, aims to tap into low-interest loans for the production of greener vehicles as part of the US government's package to
support the auto industry.

The first model produced at the new plant is expected to be a small passenger car.

Nissan also plans to build a high-capacity lithium ion battery production facility at the Smyrna site in partnership with fellow Japanese company NEC Corp.

MikeJE's picture
MikeJE
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Posts: 13
Re: Daily Digest - July 19

Timing, timing, timing....

 

I've been an avid reader of this bb for over 6 months . I 've watched all the "Crash Course" and come to the conlusion that .... yes we cannot continue in the way we have done. This, to me , is irefutable. It's all about timing... CM has concluded that we cannot go on as we have done. Yes I agree. But without definite timings how is this of any use.? The USA has an history of groups saying  "the end of the World is nigh" and their timing has sucked.  Unless you can pin down the timnig all the the hand wringing is usleless. I get the impressiom that CM , like the"Grand old duke of York", has marched you all up the hill and is now trying to march you all back down again by saying it will take a "few economic cycles" to unwind the current position.

 

Don't get me wrong, I am deeply concerned for the wellfare of my family and will do whatever it takes to protect them but am affraid of "crying wolf" . The USA has ignored the rest of the World when it comes to resource depletion,. Who the f**k are you to be taking the high ground and calling the shots now? The USA has done whatever suits the USA and not the greater good.

 

There was a peice in one of our weekend "shit sheets" about Goldman Sachs. The cancer within. I've read similar on here and on the net. When are we going to get to grips with these vampires? I like most of you want my kids to grow up knowing right from wrong, tjhat hard work is an attribute,

All they can see is that greed is good. USA you are the greatest problem. You behave as if you own the World. It is only a passing fantasy. I am prouind to be British but we too  "ruled the World" for 50 years and look where we are now!

 

Mike.  UK.

 

JAG's picture
JAG
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Re: Daily Digest - July 19
MikeJE wrote:

The USA has ignored the rest of the World when it comes to resource depletion,. Who the f**k are you to be taking the high ground and calling the shots now? The USA has done whatever suits the USA and not the greater good.

Sorry about that Mike, I have no excuse.

MikeJE's picture
MikeJE
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Posts: 13
Re: Daily Digest - July 19

I apologise for my earlier rant. I posted late on a bad day.

 

Mike.

rowmat's picture
rowmat
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Posts: 358
Re: Daily Digest - July 19
MikeJE wrote:

I apologise for my earlier rant. I posted late on a bad day.

Mike.

No problem. Your address has been forwarded to 'Boris'.

Boris

cat233's picture
cat233
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Posts: 575
Sebelius: Possible tax on rich for healthcare

And when there isn't money in the budget, turn to the wealthy.  And then Subelius goes on to say there is some money in the system, it needs to be redirected....  It just never ends...

Sebelius: Possible tax on rich for healthcare 

WASHINGTON (CNN) -- More work is needed on proposed health care legislation to make sure that it doesn't add to the budget deficit, Health and Human Services Secretary Kathleen Sebelius said Sunday.

Appearing on the NBC program "Meet the Press," Sebelius said a tax surcharge on wealthy Americans is "a legitimate way to go forward."

The taxes would start with people making $350,000.

She noted the tax surcharge provision in a House proposal was one of several options under discussion to help pay for overhauling the nation's ailing health system.

A final bill "will be paid for -- it will not add to the deficit," Sebelius said of health care reform, which is President Barack Obama's top domestic priority.

Both the House and Senate are working on proposals that would create a government-funded public health insurance option intended to drive down costs of private coverage.

However, the nonpartisan Congressional Budget Office reported last week that the measures currently under consideration in both chambers would not pay for themselves, increasing the budget deficit.

Democrats pushing the health care bills argue the CBO analysis lacks the impact of cost-cutting measures under discussion for existing programs such as Medicare and Medicaid.

Sebelius said that all proposals include provisions to decrease fraud and improve efficiency of the current system.

"In all the plans, more than half the money to pay for the proposal is already in the system,"Sebelius said, referring to what she called misdirected money for ineffective programs and other instances of waste and inefficiency.

Republican opponents so far say the government is over-reaching by seeking to reform the whole system, which is draining the federal budget while leaving 46 million Americans uninsured.

Also appearing on "Meet the Press," Senate Minority Leader Mitch McConnell of Kentucky called for expanding the tax deduction on health care costs for employers to include individual taxpayers -- what the Republicans call equalized tax treatment -- and limiting medical malpractice lawsuits that he said drive up the cost of medical care.

"I'm not in favor of doing nothing," McConnell said. "It's important to reduce the number of uninsured. The question is how to do that."

Both the House and Senate proposals so far include mechanisms to raise revenue through increased or new taxes.

The Senate Finance Committee wants to create a new tax on medical benefits provided by employers, a plan that Obama opposes.

Sebelius said the new tax could cause employers who provide coverage for 180 million Americans to change or drop their programs, which could "dismantle the private market."

"He's reluctant to move in that direction," she said.

Obama continues to favor reducing the limit on income tax exemptions for high-income Americans, Sebelius said.

www.cnn.com/2009/POLITICS/07/19/health.care/index.html
 

affert's picture
affert
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Posts: 100
Re: Daily Digest - July 19

Crops, ponds destroyed in quest for food safety
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2009/07/13/MN0218DVJ...
 

For anyone thinking of selling food you grow in your personal garden, beware. This is insanity.

(My appologies if this has already been posted, I only make it to CM about every other day). 

Russ_H's picture
Russ_H
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Posts: 18
Re: Daily Digest - July 19
MikeJE wrote:

Timing, timing, timing....

 

 like the"Grand old duke of York", has marched you all up the hill and is now trying to march you all back down again by saying it will take a "few economic cycles" to unwind the current position.

 

Mike.  UK.

 

 

Damn, does that mean all I have left is Ambrose Evans-Pritchard? see http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/585707...

I reckon when everyone is back from holiday the days draw in and people start getting depressed at the thought of winter with no job/pay cut/boss threatening a pay cut, the full hororr of what has happened will sink in and the stock market will go for a,ong holiday in Craterville.

 

 

 

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