Daily Digest

Daily Digest - July 20

Monday, July 20, 2009, 10:07 AM
  • BIS, The Central Bank of all Central Bankers: The Central Bank WAS Warned in 2003 (Repost)
  • What Should a Central Bank Do When (Chart)
  • Happiness Isn't ...
  • Holders of Treasuries (Chart)
  • Philly Fed Index Dissapoints (Chart)
  • Whalen on Banking (Video)
  • U.S. bank “earnings”: revenues falling, losses rising
  • California closes state offices to save cash
  • The Usual Suspects (Humor)
  • State Tax (Chart on page)

Economy

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

I respectfully suggest reading the entire piece.

 What Should a Central Bank Do When (Chart)

Happiness Isn't...

“Happiness isn’t having what you want, but wanting what you have.” This is our family motto.

Holders of Treasuries (Chart)

While the decrease in the US current account deficit means that the U.S. may be less reliant on foreign finance in 2009, the U.S. has become even more reliant on China as a share of its foreign finance. China has been the largest reported holder of U.S. treasuries for some months now. But as of May China now accounts for 20% of total outstanding foreign holdings and almost equals the combined holdings of Russia and Japan.

Since last fall, China dramatically scaled up its purchases of the shortest term, most liquid U.S. assets. It has purchased $196 billion in treasuries of less than 1 year maturity  [emphasis mine] from July 2008 to May 2009. In part this might reflect a shift last fall within China’s US dollar portfolio. It also vastly decreased its holdings of US agency bonds, while slightly adding long-term treasuries.

Philly Fed Index Dissapoints (Chart)

Whalen on Banking (Video)

U.S. bank “earnings”: revenues falling, losses rising

In the case of Citigroup and Bank of America, the two most-obviously insolvent fraud-factories, the “experts” were “surprised” by bottom-line profits – which were directly attributable to multi-billion dollar proceeds from asset-sales. How exactly does an “expert” get “surprised” by that? Presumably, if the “experts” don't follow the news, or can't operate a calculator then they aren't really “experts”, after all.

California closes state offices to save cash

California's fiscal crisis has left the US state without courts and some administration offices were ordered to close on Friday.
A predicted 24 billion dollar budget deficit over the next two years has forced Governor Arnold Schwarzenegger to order massive cost-cutting measures.

"We will be closed this Friday, as the last and the oncoming Friday, due to the ordering of three furlough days each month by the governor," an official from the Hollywood Department of Motor Vehicles (DMV) office, which issues driver's licenses, told AFP.

The DMV is one of many state offices to close on Friday, one of three unpaid leave days a month ordered for state workers to help the government reduce its expenses.

 The Usual Suspects (Humor)

State Tax (Chart on page)

7 Comments

Mikey1052's picture
Mikey1052
Status: Bronze Member (Offline)
Joined: Dec 8 2008
Posts: 41
What about Europe's mess...

 

So what might we expect in the way of problems caused by the melt down of banks in Europe, UBS now leveraged at 70:1 for one example...

 

"When asked a few weeks ago what was my biggest short-term concern, I quickly replied, "European banks have the potential to create significant risk for the entire worldwide system." This week we will glance "over the pond" to see what gives me cause for concern. Then we briefly look at a few of the bumps I mentioned, which are likely to stretch out any recovery, and maybe even dip us back into recession" John Mauldin Frontline

 

www.frontlinethoughts.com/gateway.asp

 

And what of Japan in the next 2 years or so...

The same site in the previous article

 

 

idoctor's picture
idoctor
Status: Diamond Member (Offline)
Joined: Oct 4 2008
Posts: 1731
Re: Daily Digest - July 20

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

Good for him calling the problem...however he gives no answers to get out of this mess?

CB's picture
CB
Status: Gold Member (Offline)
Joined: Mar 18 2008
Posts: 365
Re: Daily Digest - July 20

Link to an interview with  Stephen Zarlenga (downloadable audio file), author of "The Lost Science of Money" (2004). Just ignore the clueless interviewers.

http://www.archive.org/details/DianeKamp_DaveZollingerStephenZarlengaTalksAbouttheLostScienceofMoney

Link to Amazon reviews of the book:

http://www.amazon.com/Lost-Science-Money-Mythology-Story/product-reviews/1930748035

 

idoctor's picture
idoctor
Status: Diamond Member (Offline)
Joined: Oct 4 2008
Posts: 1731
Re: Daily Digest - July 20

Roubini: Economic Recovery to Be 'Very Ugly'

http://www.cnbc.com/id/32012679

grl's picture
grl
Status: Silver Member (Offline)
Joined: Nov 30 2008
Posts: 188
Re: Daily Digest - July 20








"The bank is something more than men, I tell you. It's the monster. Men made it, but they can't control it."John Steinbeck, The Grapes of Wrath (1939)

 

Headless's picture
Headless
Status: Gold Member (Offline)
Joined: Oct 28 2008
Posts: 363
Re: Daily Digest - July 20

Denninger makes a point this morning that should be plastered across every "Front Page" in America:

http://market-ticker.denninger.net/archives/1245-CNBC-Attempts-Assasination-on-Barofsky.html

I would simply ask CNBC, were I Barofsky: Which part of the truth would you have us leave out of the report?

Unbelievable!

P.S. Forward Denninger's commentary to everyone on your email lists; with requests to do so with theirs, etc. etc. This is no longer America.

P.P.S. Davos, If you see this, would you include it in the next (and, perhaps, several) daily summaries? Thanks.

mainecooncat's picture
mainecooncat
Status: Gold Member (Offline)
Joined: Sep 7 2008
Posts: 488
Re: Daily Digest - July 20

Thanks for the link, Headless.

Whenever I watch something like this, the lines drawn in the sand (ones drawn long ago yet not always apparent) become highlighted with fluorescent road cones. CNBC and their apparatchik talking heads are firmly against the American citizenry, the rule of law, and the tenets of the Constitution. It's pretty plain to see.

The self-satisfied, attack-dog scowls on the faces of the "hosts" juxtaposed with Barofsky's sheer incredulity at what these minions are saying was almost chilling to me and surely a sign of the times and what's to come for those who choose to speak truth to power.  

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