Daily Digest

Daily Digest - June 7

Monday, June 7, 2010, 10:53 AM
  • On The Trail Of Europe's "Mysterious" $2.6 Trillion In Toxic Debt
  • 3 Days Into The Month = $169 Billion Of Debt Redeemed
  • Peter Schiff: Key Indicators Of A New Depression
  • Two Beers with Steve - Karl Denninger
  • Automobile-Dependent Real Estate And Jobs
  • Deepwater Horizon and the Technology, Economics, and Environmental Impacts of Resource Depletion
  • Research Links Genetically Modified Food To Long Term Sterility
  • Mayors Beat World Leaders Promoting Cycle Path
  • Surging Costs Hit Food Security In Poorer Nations
  • Urban Farming "Mobile And Flexible" In Berlin

Economy

On The Trail Of Europe's "Mysterious" $2.6 Trillion In Toxic Debt (pinecarr)

The NYT has a pretty good article about the "mystery" of Europe mega toxic loans, which amount to $2.6 trillion just to Greece, Spain and Portugal, in that all attempts to find out just who is on the hook for all this debt have apparently yielded no results. We disagree: this is a topic that has been beaten to death before on ZH, and it is all too well known that France and Germany will go bust overnight if PIIGS debt is allowed to be marked even halfway to market pro forma for governmental bailouts, on the banks' balance sheets.

3 Days Into The Month = $169 Billion Of Debt Redeemed (pinecarr)

Total US debt today was $13.06 trillion. Total debt on March 6, 2009 was $10.95. The government has spent $2.1 trillion dollars to create a bear market rally which has now fizzled, and to fund a fiscal stimulus that is now dancing its death rattle.

Peter Schiff: Key Indicators Of A New Depression (mhoop)

During Great Depression I, unemployment broke 25%. If government statistics are taken at face value, the current unemployment rate is 9.9%, but a closer look reveals that the broadest measure of unemployment is currently at 20% - and rising. So, today's numbers are in the same ballpark as the '30s even though the federal government is using unprecedented measures to keep the economy afloat. Remember, in Great Depression I, FDR never ran a deficit nearly as large as President Obama's. Moreover, the Federal Reserve of the 1930s still had a gold standard with which to contend, while today's Fed has increased the monetary base with impunity. Yet even with all that intervention, unemployment figures still indicate that we have entered depression territory.

Two Beers with Steve - Karl Denninger (Nickbert)

Denninger discusses the Federal Reserve, Congress, the financial markets, inflation/deflation, and whether or not gold is a safe haven.

This interview starts out with Karl Denninger recounting his days as CEO of an internet company during the go-go 90's. Karl recalls the stress of betting the company every 18 months to keep in line with the latest technologies and that it was understood by everyone in the industry that we were clearly in a bubble at the time. The bubble promptly busted, but by then Karl had already exited stage left.

Energy

Automobile-Dependent Real Estate And Jobs (mhoop)

Those of you who live in these communities, how do you cope when you have no car? Are you worried about your investment collapsing if (when) oil ever goes sky-high again? Did anyone choose a non-car-dependent neighborhood with a view towards how things might be in 20-30 years?

Environment

Deepwater Horizon and the Technology, Economics, and Environmental Impacts of Resource Depletion (pinecarr)

Following the failure of the latest efforts to plug the gushing leak from BP's Deepwater Horizon oil well in the Gulf of Mexico, and amid warnings that oil could continue to flow for another two months or more, perhaps it's a good time to step back a moment mentally and look at the bigger picture - the context of our human history of resource extraction - to see how current events reveal deeper trends that will have even greater and longer-lasting significance.

Research Links Genetically Modified Food To Long Term Sterility (mhoop)

A new study done by Russian scientists suggests that Genetically Modified Food may cause long term sterility, that is, sterility in second and third generations. The scientists used hamsters for this research and divided them into groups. One group of hamsters was fed a normal diet without any soy products, a second group was fed non-GMO (genetically modified organism) soy, the third ate GM soy and the fourth group was fed an even higher amount of GM soy than the third.

Mayors Beat World Leaders Promoting Cycle Path (joemanc)

Los Angeles: city of freeways, smog, and -- bike lanes? In one of the less likely transformations in the global effort to cut carbon output, Los Angeles plans to spend $230 million on 1,700 miles of bicycle paths, Bloomberg Businessweek reports in its June 7 issue.

Most of the program will be completed by 2015, and includes changing rooms, showers, and bike storage areas operated by the city and private partners, the city’s Web site says. It comes on top of subsidies for installing solar panels and incentives for planting trees and switching to electric vehicles. “We have to make a change,” says Michelle Mowery, senior coordinator for the city’s bike program. “We can’t fit any more cars in.”

Surging Costs Hit Food Security In Poorer Nations (Nickbert)

With food costing up to 70 percent of family income in the poorest countries, rising prices are squeezing household budgets and threatening to worsen malnutrition, while inflation stays moderate in the United States and Europe. Compounding the problem in many countries: prices hardly fell from their peaks in 2008, when global food prices jumped in part due to a smaller U.S. wheat harvest and demand for crops to use in biofuels."

Urban Farming "Mobile And Flexible" In Berlin (Regina F.)

A photo gallery of portable garden boxes in Berlin, Germany (captions in German).

Please send article submissions to: [email protected]

20 Comments

saxplayer00o1's picture
saxplayer00o1
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Re: Daily Digest - June 7

 

"7 Jun 2010 --- Despite recent drops in international food prices, the cost of the average food basket is 69 percent higher than six years ago."

  (If the link above doesn't work try the Google search link here)

"June 7 (Bloomberg) -- Signs the global economic recovery is faltering and Europe's fiscal crisis is spreading added to investor concern that banks will have difficulty in clawing back the $2.4 trillion they're owed by that region's most indebted nations."

"Europe's debt-ridden nations have to raise almost 2 trillion euros ($2.4 trillion) within the next three years to refinance maturing bonds and fund deficits, according to Bank of America Corp. Data."

"June 7 (Bloomberg) -- Overnight deposits with the European Central Bank rose to a record on June 4 as Hungary heightened concerns about a sovereign debt crisis that’s making banks wary of lending to each other.

Banks lodged 351 billion euros ($418 billion) in the ECB’s overnight deposit facility at 0.25 percent, compared with 299 billion euros the previous day, the Frankfurt-based central bank said in a market notice today. That’s the most since the start of the euro currency in 1999."

"A new study by the Federation of Indian Chambers of Commerce and Industry (FICCI) has expressed concern that the sovereign debt crisis of Greece may spread over to other European nations which could have catastrophic impact on Indian exports."

.....................4A) Flaherty, Carney Warn Europe a Growing Risk to Canada Growth

"June 7 (Bloomberg) -- Canadian policy makers emerged from meetings of Group of 20 officials last weekend warning the impact of Europe’s debt crisis on Canada may escalate.

Bank of Canada Governor Mark Carney said that while the country has so far been only been modestly affected, there are “scenarios” where things may get worse as European governments rein in deficits. Finance Minister Jim Flaherty said Canada isn’t an “island.”"

"The high cost of financing Ireland's debt could become unsustainable and wipe out the fruits of its much-lauded fiscal tightening programme, said an economist who was one of the main advisers on the reforms."

"June 7 (Bloomberg) -- The bonds designed by the U.S. government to help municipalities recover from the worst recession since the Great Depression may cost them millions of dollars in unforeseen borrowing costs instead of saving them money.

Build America Bonds were part of the American Recovery and Reinvestment Act, passed in 2009. The government offered state and local issuers a 35 percent subsidy on interest costs if they sold bonds on a taxable basis, making such financing cheaper than borrowing in the traditional tax-exempt market. Now the Treasury says it will reduce the BAB subsidies by any amount issuers owe the government.

This would force municipalities to come up with the cash to repay debt service at the same time they are trying to fill holes in their budgets. Three major cities that have discussed chapter 9 bankruptcy this year -- Detroit, Los Angeles and Miami -- have sold a combined $4.5 billion in BABs. The last thing these issuers need is a surprise.

Issuers have sold more than 1,200 BAB issues totaling $107 billion since last year, making it the most successful program in the $2.8 trillion municipal market.

Pushing municipalities a little closer to the brink of the unthinkable isn’t what those who created BABs, or those who have tapped the market with such issues, had in mind. The state of Florida suspended BAB sales until the government guarantees the subsidy."

..........................6A) Specter of IRS Audits Casts Cloud Over BABs

"LONDON—The U.K. government would have to pay £70 billion ($101.33 billion) in interest on its debt by 2015 if it doesn't take urgent action to cut borrowing, Prime Minister David Cameron said Monday.

Speaking at the Open University in Milton Keynes, Mr. Cameron said the new government's examination of the public sector's financial position had revealed that "the scale of the problem is even worse than we thought.""

"It's a week before the June 15 constitutional deadline for enacting a state budget, an appropriate moment to consider the status of this year's version of the annual fiscal drama.

And that is? Up the proverbial creek without the proverbial paddle.

In the weeks since Gov. Arnold Schwarzenegger unveiled his revised 2010-11 budget, there's been absolutely no progress on closing the deficit that approaches $20 billion. In fact, the situation may have grown worse because the extra federal funds that the governor and the Legislature have counted on are evaporating.

Originally, Schwarzenegger projected that the state would get an extra $7 billion. His May revision cut that in half, but a congressional measure that would boost federal medical payments to states has stalled, perhaps permanently. And that means the state may receive no more than an extra $1 billion."

"LONDON: The cost of protecting government debt against default in France as well as several peripheral euro zone sovereigns rose on Monday over

heightened worries about risks to Hungary's burgeoning debt. "

"The Italian 10-year BTP yielded 174 bps over Bunds, a record high. Five-year credit default swaps (CDS) on French government debt rose to 100 basis points from 92 bps on Friday, according to CDS monitor Markit. It means the cost rises to 100,000 euros to protect 10 million euros-worth of French government bonds."

........................9A) Corporate Bond Risk Rises in Europe, Credit-Default Swaps Show

"June 7 (Bloomberg) -- The cost of protecting European corporate bonds from default rose, according to traders of credit-default swaps.

Contracts on the Markit iTraxx Crossover Index of 50 companies with mostly high-yield credit ratings climbed 13 basis points to 602, according to Markit Group Ltd. prices at 7:20 a.m. in London. The index is a benchmark for the cost of protecting bonds against default and an increase signals a deterioration in the perception of credit quality."

"Congress has put the health care for older Americans on Medicare at “grave risk” by not stopping the 21% cut in doctor’s payments for serving the federal program, the American Medical Association warned.

The AMA launched a multi-million dollar national advertising campaign, with ads on TV and the radio, and in newpapers, including the New York Times, USAToday and the Wall Street Journal, “encouraging the public to contact their senators and tell them to get back to work and fix Medicare now,” said J. James Rohack, AMA president, in a statement."

.................................10A) US Cobra Health Coverage Payment Aid Appears Likely To End

...................................10B) Unemployed face loss of health care without COBRA subsidies

..................................10C) HHS Warns Medicare Advantage Plan Insurers on Rates

"WASHINGTON—A fresh fight between insurance companies and the Obama administration is taking shape, this time over how much seniors should pay for their privately run Medicare plans next year.

On Monday, insurers that sell Medicare Advantage plans must submit their 2011 bids to the government. In a letter to four insurance-industry executives, Health and Human Services Secretary Kathleen Sebelius warned the companies not to increase premiums and co-payments for seniors."

"Many insurance companies are planning to increase costs for a range of services for seniors next year, according to consultants who have helped prepare their bids. Dozens of Medicare Advantage providers plan to cut back vision, dental and prescription benefits. Some plans are eliminating free teeth cleanings and gym memberships, and raising fees for hearing aides, eye glasses and emergency-room visits.

Consultants cite two reasons for the cuts. The rate the government will pay private insurers to run the plans is frozen for 2011 at 2010 levels, while medical costs are expected to increase an average of at least 6%. Such price increases and benefit cuts will help them recoup that difference, the consultants say.

Meanwhile, the health overhaul will impose drastic payment cuts to insurers that run the plans, and consultants say insurance companies need to begin adapting now. Starting in 2012, the law calls for a gradual reduction in government payments to insurers, totaling $136 billion before the end of the decade."

..........................................10D) Cash-strapped states press Congress for more Medicaid help

"States are turning up the pressure on federal lawmakers to help them pay their Medicaid bills, cautioning that they’ll otherwise face a dire fiscal situation that could hurt their economic recovery. "

"They want lawmakers to extend for six months – until June 30, 2011 – enhanced Medicaid payments that were part of last year’s recovery act. The measure would cost $24 billion, and was stripped from the tax extenders package that the House approved on the Friday before the Memorial Day recess, May 28."

"Belgium struggled to raise debt in auctions on Monday as political uncertainty and economic problems deterred investors from buying the country’s bonds.

Investors demanded almost a percentage point more in yields to hold Belgian 10-year bonds instead of German bunds. This is half a percentage point more than just a week ago and the widest spread since March 2009.

The country sold €3.2bn of bonds due in 2012, 2016 and 2020. The key 10-year auction saw a bid-to-cover ratio of only 1.4 times, which is much lower than the general average of about 2.

Belgian 10-year bonds fell for the fifth day in a row as worries rose that politicians were failing to grasp the need to cut the country’s high debt levels."

(He posts a link from June 2 and talks about this chart):

purchase apps

"Sales of commercial-mortgage backed securities halted in 2008 as credit markets froze, choking off funding to property borrowers. Even with government aid, only $3.04 billion of the debt was issued last year, compared with $11.2 billion in 2008 and a record $232.4 billion in 2007, according to data compiled by Bloomberg. Royal Bank of Scotland Group PLC sold $309.7 million of the bonds in April. During the boom, sales grew as large as $7.6 billion, the data show. "

"June 7 (Bloomberg) -- Group of 20 finance chiefs’ lack of comment on the 17 percent drop in the euro versus the dollar this year at last week’s meeting signals they approve of the shared currency’s direction, according to Morgan Stanley."

  • Other news, headlines....:

Euro Weakens to 2001 Low Versus Yen Amid Europe Debt Concerns ...(Original headline)

Merkel’s Cabinet Backs ‘Decisive’ Cuts as U.S. Urges Spending and G20 Heated Debates; Europe Politely Tells Geithner Where To Go (Mish)

Fitch says Hungarian comments raise fiscal questions

German Bund Yield Falls to Record Low as Risk Aversion Rises

Hoarding Treasuries Helps Dealers as Europe Woes Rise

Shale Gas Well Blowout Raises Specter of New BP: Energy Markets

Coupon redemption climbed to 3.3 billion in 2009

Global Fossil-Fuel Subsidies Were $557 Billion in 2008, IEA Says

Energy Traders Woo Asia as Debt-Stressed Europe Curbs Lending

Chocolate lovers hit by rising price of cocoa as disease blights crops

India's Rupee Slides on Speculation Fund Outflows to Accelerate

$100 Oil Will Soon Be Here to Stay, Says Former Shell Oil President (Video...Tech Ticker)......."Peak oil"

Barnidge: California's prison problems just keep getting worse

No COLAs on state pensions (Pennsylvania....contributions to jump from 8% to 30% of payroll costs)

A humorous look at California’s growing problem of underfunded public employee pensions

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Re: Daily Digest - June 7

4 from link from the bottom in Saxplayer's posting -- pretty big admission by Hofmeister (formerly of Shell Oil)  He's clinging to the hope of non-conventional oil production, but knows it'll be pricey nonetheless:

"I think over the next 5 to 10 years we will peak in the production of what's called conventional or easy oil," he says. "We will not in anyway peak relative to the resources left in the earth. But the resources left in the earth will be higher risk and higher cost to produce, which will increase the cost basis on which ultimately gas prices are set."

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Re: Daily Digest - June 7

"June 7 (Bloomberg) -- European finance ministers indicated that they are in no rush to halt the euro’s slide against the dollar, calling the currency’s current level a tonic for the economic recovery.

The 16-nation currency has tumbled 13 percent since mid- April as the Greece-fueled debt crisis exposed cracks in the monetary union and prompted deficit cuts across Europe that may hobble growth.

The euro had been “too strong for the economy,” Belgian Finance Minister Didier Reynders told reporters before a meeting of European financial officials in Luxembourg today. A rate of $1.20 “is not so bad for competitiveness.”

Exports combined with government spending to lift Europe’s economy by 0.2 percent in the first quarter, the third straight quarterly rise after the deepest recession since World War II.

The weaker euro helped push up factory orders in Germany, Europe’s largest economy, by 2.8 percent in April, the second straight rebound, official figures showed today."

 

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Re: Daily Digest - June 7

Thanks to Saxplayer and to everyone who contributed for a great
DD today!
Denise

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Re: Daily Digest - June 7

In Brutal Job Market, More Than a Million Quit Looking

If you think the jobs situation has become pretty hopeless, you're not alone. Roughly 1.1 million workers have given up hope of finding employment.

Unemployment line

The staggering level of "discouraged workers" as the government calls them has swelled to historic proportions in 2010, past the million barrier for the first time since the Bureau of Labor Statistics has been tracking the number.

Though a bit off its all-time high of 1.2 million recorded in February, the metric stands as perhaps the most daunting statistic of last Friday's gloomy jobs report, which showed that almost all the new employment is coming from temporary government Census jobs and not the kind that will sustain an economy.

"The fact that people are sitting down indicates just how bad the market is for some categories of people," says Peter Morici, professor at the University of Maryland's Smith School of Business and the former chief economist at the US International Trade Commission.

That picture is unlikely to get any better, particularly in terms of the headline unemployment rate number on which most people focus. That figure actually dropped from 9.9 percent to 9.7 percent in May, but was as much a reflection that many people simply dropped out of the jobs market and are no longer counted as unemployed.

Even if those who have quit searching come back to the market, that will only keep the headline number high as the labor force increases.

"Now you're going to have the woodwork effect," Morici says. "All the people who were discouraged will be coming out of the woodwork to find jobs."

As the headline number has dropped from 10.1 percent in October 2009, the number of discouraged workers has jumped 34 percent, from 808,000 to 1.08 million.

The decline in active job-seekers, in fact, may be helping pad the employment picture at least on the surface.

"If it weren't for the plunge in the labor force, the US unemployment rate would have climbed to 10% in May," Gluskin Sheff chief economist David Rosenberg says in his morning note Monday. "[T]he household survey actually flagged a 35,000 outright decline in employment last month."

And the growth in discouraged workers—technically defined as those who haven't looked for work in four weeks—could well stay high for the foreseeable future.

The long-term unemployed—those who haven't worked for at least 27 weeks, or more than half a year—remains mired at 6.8 million, a number that accounts for 46 percent of the total jobless figure.

Ramifications of the credit crisis and the ensuing efforts companies made at doing more with less have helped depress employment as well. Company productivity rose 2.8 percent in the first quarter.

"We don't expect any substantial improvement to the labor situation at all," says Richard Hastings, macro and consumer strategist at Global Hunter Securities in Newport Beach, Calif. "Companies just don't need as much labor to drive as much output from technology and machinery. If you're in the wrong industry and you don't have a track record in the right skills in other industries, you're going to be a long-term stat."

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Re: Daily Digest - June 7

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Gas wells exploding all over the place

Today in W-Va -- a gas well being drilled in a mine blew up, injuring 7 workers.

http://www.foxnews.com/us/2010/06/07/gas-explosion-wvas-northern-panhand...

Today in TX -- gas well blew up, killing 3 and 10 are missing.  The fire can be seen from 30 miles away...

http://www.arlingtoncardinal.com/2010/06/07/gas-well-explosion-near-gran...

Do we have any industry experts in the house?  Is this a crazy series of accidents, or do these things happen all the time?

 

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Re: Daily Digest - June 7

The Associated Press: W.Va. gas well explosion send flames 70 feet high

A crew drilling a natural gas well through an abandoned coal mine in West Virginia's Northern Panhandle hit a pocket of methane gas that somehow ignited, triggering an explosion that burned seven workers, a state inspector said Monday.The blast created a column of flame at least 70 feet high, and it will likely burn until a team of well fire experts can reach the scene to extinguish it, said Bill Hendershot, an inspector with the Department of Environmental Protection's Office of Oil and Gas.

10 Missing After Underground Pipeline Explodes At Oil Refinery In Texas - cbs5.com 

 

At least 10 people are reported missing after an explosion that sounded like a tornado caused a massive fire in rural north-central Texas.
Cleburne city manager Chester Nolen tells the Dallas-Fort Worth television station WFAA that Monday's explosion left at least 10 people missing, and a city fire official said at least six were injured.

A witness in nearby Granbury tells The Associated Press she was about 8 miles from the site of the explosion. Laura Harlin says she heard a "huge rumbling" that she thought was thunder and then a tornado.
Television images showed a large fireball and a burned out vehicle and construction equipment.
Cleburne is about 50 miles southwest of Dallas.

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Re: Daily Digest - June 7

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Re: Daily Digest - June 7

BP buys Google, Yahoo search words to keep people away from real news on Gulf oil spill disaster

In their most tenacious effort to control the spin on the worst oil spill disaster in the history, BP has purchased top internet search engine words so they can re-direct people away from real news on the Deepwater Horizon
catastrophe.

BP spokesman Toby Odone confirmed to ABC News that the oil giant had in fact bought internet search terms. So now when someone searches the words oil spill, on the internet, the top link will re-direct them to BP's official
company website.

This would not be the first time that BP has tried to control information to protect the company's public image.

http://www.examiner.com/x-33986-Political-Spin-Examiner~y2010m6d6-BP-buys-Google\
-Yahoo-search-engine-words-to-keep-people-away-from-real-news-on-Gulf-oil-spill-\
disas

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Re: Daily Digest - June 7

Obama warns of tough economic times after oil spill
By North America correspondent Kim Landers

http://www.abc.net.au/news/stories/2010/06/08/2921219.htm?section=justin

United States president Barack Obama is warning that the economic impact from
the Gulf of Mexico oil spill will be "substantial".

Mr Obama is trying to reassure Gulf coast residents that they will get through
the oil spill crisis, but he warns there are tough times ahead.

"What is clear is that the economic impact of this disaster is going to be
substantial and it's going to be ongoing," he said.

The official in charge of the US government's response to the oil spill, Thad
Allen, says a cap on the ruptured oil well is collecting 11,000 barrels of oil a
day, and that could soon increase to 20,000.

But he says the effects of the spill will be felt for a long time.

"Dealing with the oil spill on the surface ... will [take] years," he said.

The oil slick has now reached the shores of four states.

BP's clean up costs have now topped more than $1.5 billion.

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Re: Daily Digest - June 7

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Re: Daily Digest - June 7

Saxplayer,

You do an outstanding job with the DD.  I do not know how you do it but your efforts and willingness to share are very much appreciated.

Eye

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Re: Daily Digest - June 7

 

Saxplayer,

You do an outstanding job with the DD.  I do not know how you do it but your efforts and willingness to share are very much appreciated.

Eye

 

Eye I can only agree. Saxplayer you really do an outstanding job that is very very much appreciated.

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Re: Daily Digest - June 7
DTM wrote:

BP buys Google, Yahoo search words to keep people away from real news on Gulf oil spill disaster

In their most tenacious effort to control the spin on the worst oil spill disaster in the history, BP has purchased top internet search engine words so they can re-direct people away from real news on the Deepwater Horizon
catastrophe.

BP spokesman Toby Odone confirmed to ABC News that the oil giant had in fact bought internet search terms. So now when someone searches the words oil spill, on the internet, the top link will re-direct them to BP's official
company website.

This would not be the first time that BP has tried to control information to protect the company's public image.

http://www.examiner.com/x-33986-Political-Spin-Examiner~y2010m6d6-BP-buys-Google\
-Yahoo-search-engine-words-to-keep-people-away-from-real-news-on-Gulf-oil-spill-\
disas
 

Good find, Damnthematrix.  I tried it out on google, and sure enough, BP is the top hit with the message "Info about the Gulf of Mexico Spill Learn More about How BP is Helping."  Blachh!  If it is any consolation, though, the second link was www.earthjustice.org/oilspill ...

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Re: Daily Digest - June 7
pinecarr wrote:
DTM wrote:

BP buys Google, Yahoo search words to keep people away from real news on Gulf oil spill disaster


Good find, Damnthematrix.  I tried it out on google, and sure enough, BP is the top hit with the message "Info about the Gulf of Mexico Spill Learn More about How BP is Helping."  Blachh!  If it is any consolation, though, the second link was www.earthjustice.org/oilspill ...

This is exactly why it is always a good idea to look at the 2nd or 3rd  item in the search response. Google makes money by selling top billing for lots of things not just "oil spill".

Ken

 

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Re: Daily Digest - June 7

It's kind strange... I have been trying to replicate the "oil spill" -> bp.com exercise here, but the two top links I get are Google News, Wikipedia, other news sites, Twitter and stuff like that, but I live in Japan. I get the feeling that this is simply Google's algorithm getting entangled into believing that Americans all go to bp.com when searching about oil spill (this kind of feedback loop happens from time to time), but not Japanese..? Anyone has a screenshot of what it looks like when connecting from America? I'd love to see that.. thanks

BTW, "Obama looking for 'whose ass to kick'":
http://edition.cnn.com/2010/POLITICS/06/07/gulf.oil.obama/index.html
http://hotair.com/archives/2010/06/07/obama-on-bp-i-want-to-know-whose-a...

Surprised

Samuel

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Re: Gas wells exploding all over the place
SagerXX wrote:

Do we have any industry experts in the house?  Is this a crazy series of accidents, or do these things happen all the time?

No coincedences, just simply the consequences of doing more with less.   

The energy industry is drilling, mining, pumping, processing, transferring and transporting more volumes at deeper depths, over longer distances, higher EROEI and an aging infrastructure.   Also, there is more enviromental scruntity, occupational safety scruntity, public scruntity, more government redtape and more economic/political risk.

The industry is doing all this with less people, less capital, less historical data, less profit margin and a generation that grew up on Nintendo and PCs.  

All the fat has been cut - now, we are cutting into muscle and bone.

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Re: Gas wells exploding all over the place
mooselick7 wrote:
SagerXX wrote:

Do we have any industry experts in the house?  Is this a crazy series of accidents, or do these things happen all the time?

All the fat has been cut - now, we are cutting into muscle and bone.

Ugh!  Brilliant metaphor, even if it makes me grit my teeth.  Thanks for your insight, Mooselick!

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guardia
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Re: Daily Digest - June 7

Ah, found one screenshot here:

http://m.news.com/2166-12_3-20007108-71.html

Looks like a normal "sponsored link"... At least it's not a problem with Google or Yahoo.

Samuel

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