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Daily Digest - March 2

Monday, March 2, 2009, 11:04 AM
  • Financial Sense Newshour - 3rd Hr
  • Brown woos Obama on global deal
  • Detroit, Median Home Price $7,500.00, Homicide Down, No One Left to Kill
  • Chavez sends army to rice plants (Hat Tip Zombie210)
  • China is mobilizing its dollar reserves! (Hat Tip PineCarr)
  • EU holding economic crisis summit (HatTip Zombie210)
  • EU leaders rule out financial bailout for troubled eastern Europe (Hat Tip Zombie210)
  • Germany rejects bailout plan for east EU nations
  • Canada set to chop rates, may signal cycle's end
  • Bank nationalization worries, jobs data to likely pressure markets this week (Hat Tip Zombie210)
  • Violence between repo men, car owners on the rise
  • Growing List of Officials and Experts Warn of Depression-Induced Violence (Hat Tip Christopher Peters)
  • Layoffs
  • Wording
  • Parting Words: Buffet's Mea Culpa (Hat Tip Zombie210)
  • $1 per Watt: Is this a Milestone or the Bottom for Silicon-Based Panels? (Hat Tip Zombie210)
  • Solar Car (Hat Tip Zombie210)
  • Calif. declares drought emergency, mulls rationing 

Economy 

FSN News 3rd Hr :00 Dep. FDR/Obama, 3:05 Economy, 9:00 3trn Deficit, 19:20 Classic Mistakes

Brown woos Obama on global deal 

GORDON BROWN hopes to forge a partnership with President Barack Obama in Washington this week, to call for a "global new deal" to lift the world out of recession. 

As he prepares for his first White House visit since the president's inauguration, the prime minister has hinted that he is ready to make further tax cuts to boost the UK economy.

Detroit, Median Home Price $7,500.0, Homicide Down, No One Left to Kill 

DETROIT - It may be tough to get financing for a new car these days, but in Detroit you can buy a house with a credit card. 

The median price of a home sold in Detroit in December was $7,500, according to Realcomp, a listing service.

Not $75,000. Remove a zero-it's seven thousand five hundred dollars, substantially less than the lowest-price car on the new-car market.

Among the many dispiriting numbers that bleakly depict the decrepitude of this onetime industrial behemoth, the steep slide of housing values helps define the daunting challenge to anyone who wants to lead this shrinking, poverty-pocked city of about 800,000 people.

Chavez sends army to rice plants (Hat Tip Zombie210) 

Mr Chavez accused some firms of overcharging by refusing to produce rice at prices set by the government.
He warned that some companies could be nationalised if they tried to interfere with supplies of the grain. 

China is mobilizing its dollar reserves! (Hat Tip PineCarr) 

The country has about $1.95 trillion in foreign exchange reserves, the world's largest [True number is around 2.3 trillion now]. And it has the lion's share of investment in low-risk, low-yield assets such as the US treasury bonds [which will make China a net seller of treasuries as it funds other uses of its reserves] 

The government de-pegged the yuan from the US dollar in July 2005, after which the Chinese currency has risen about 20 percent against the greenback.

But since the country's economic growth dropped to a seven-year low of 6.8 percent in the fourth quarter of 2008, there has been speculation that the yuan could be devalued to bolster exports. [Unlikely, China is experiencing a drought and devaluing its currency would put even more upwards pressure on food prices.] 

Wording

Parting Words: Buffet's Mea Culpa (Hat Tip Zombie210)

"Modest incompetence simply won't do; it's mindboggling screw-ups that are required."

EU holding economic crisis summit (HatTip Zombie210)

In a letter to the EU leaders, Mr Brown echoed the call to work together: "We face the threat of a retreat into protectionism," he said.

EU leaders rule out financial bailout for troubled eastern Europe (Hat Tip Zombie210)

BRUSSELS - German Chancellor Angela Merkel and other European Union leaders flatly rejected a new multibillion-dollar bailout for eastern Europe on Sunday, suggesting that additional aid be given to struggling countries only on a case-by-case basis.

Germany rejects bailout plan for east EU nations

Germany rejected appeals Sunday for a single multibillion euro (dollar) bailout of eastern Europe, even after Hungry begged EU leaders not to let a new "Iron Curtain" divide the continent into rich and poor.

Canada set to chop rates, may signal cycle's end

The bad news has taken a toll on the Canadian dollar, which touched a one-month low on Friday on rising risk aversion and news that Canada's current account went into deficit in the fourth quarter for the first time in nearly a decade, and by a wider-than-expected margin.

So far this year the Canadian dollar has fallen about 3 percent, and has had trouble staying above 80 U.S. cents. That's a far cry from last year when it was worth more than the greenback on several occasions.

While rate cuts generally weaken a country's currency since they reduce the premium versus other currencies, some market players said in this case a cut would be viewed as a positive because it would help get the economy back on track.

"The more aggressive the bank is the better it is going to be for the Canadian dollar," said Steve Butler, director of foreign exchange trading at Scotia Capital.

"The reality is things are hitting harder and faster than I think anybody had forecast ... I wouldn't be surprised for the bank to be a bit more aggressive and I think they are going to have to tweak some of their forecasts."

Bank nationalization worries, jobs data to likely pressure markets this week (Hat Tip Zombie210)

TORONTO - There will be likely little to cheer investors this coming week after concerns about bank nationalization in the United States were heightened by a new aid deal for American finance giant Citigroup.

As well, the end of the week will see data showing more horrendous job losses in the United States during February.

Violence between repo men, car owners on the rise

HALSELL, Ala. (AP) - Alone in his mobile home off a winding dirt road, Jimmy Tanks heard a commotion at 2:30 a.m. just outside his bedroom window: Somebody was messing with his car.
The 67-year-old railroad retiree grabbed a gun, walked out the back door and confronted not a thief but a repo man and two helpers trying to tow off the Chrysler Sebring. Shots were fired, and Tanks wound up dead, a bullet in his chest.

The man who came to repossess the car, Kenneth Alvin Smith, is awaiting trial on a murder charge in a state considered a Wild West territory even by the standards of an industry that's largely unregulated nationally. Since Tanks' death last June, two other repo men from the same company Smith worked for were shot, one fatally.

"It's gotten to where it's a crazy world out there," said Smith, 50, an ex-Marine who preaches part-time and sings gospel music. Smith said Thursday that he fired in self-defense after Tanks fired a shot.

Growing List of Officials and Experts Warn of Depression-Induced Violence (Hat Tip Christopher Peters) 

The number of high-level officials and experts warning that the economic crisis could lead to revolt and revolution world-wide - even in the U.S. - is growing every day: 

$1 per Watt: Is this a Milestone or the Bottom for Silicon-Based Panels? (Hat TipZombie210)

A long-sought solar milestone was eclipsed on Tuesday, when Tempe, Ariz.-based First Solar Inc. announced that the manufacturing costs for its thin-film photovoltaic panels had dipped below $1 per watt for the first time. With comparable costs for standard silicon panels still hovering in the $3 range, it's tempting to conclude that First Solar's cadmium telluride (CdTe) technology has won the race. But if we're concerned about the big picture (scaling up solar until it's a cheap and ubiquitous antidote to global warming and foreign oil) a forthcoming study from the University of California-Berkeley and Lawrence Berkeley National Laboratory suggests that neither material has what it takes compared to lesser-known alternatives such as-we're not kidding-fool's gold.

Layoffs

Solar Car (Hat Tip Zombie210)

Everything is packaged in a chrome-moly steel frame wrapped in carbon-fiber-and-Kevlar bodywork. The car weighs just under 500 pounds, and the top half of the body weighs just 40 pounds - with the solar cells.

Racing across Australia will require more than getting in, buckling up and mashing the accelerator pedal. There's a tremendous amount of strategy involved, with careful consideration of everything from road conditions and terrain to the weather forecast. Maximizing efficiency and range is the name of the game.

"You've got to go 2,000 miles, you've got specific hours you can drive and you've got a fixed amount of energy in the battery," said Spencer Quong, the Union of Concerned Scientists expert who is a member of the Team New England solar race team.

Calif. declares drought emergency, mulls rationing

As many as 95,000 agricultural jobs will be lost, communities will be devastated and some growers in the most economically productive farm state simply are not able to plant, state officials said, calling the current drought the most expensive ever.

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28 Comments

Davos's picture
Davos
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Re: Daily Digest - March 2

stock_crash_09.jpg.scaled.500.jpg

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Ruhh
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Re: Daily Digest - March 2

from the BBC.

Islamic Banks Better in Crisis
http://news.bbc.co.uk/2/hi/asia-pacific/7918129.stm

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Re: Daily Digest - March 2

Idiots,

Having tabled talks of tax sharing and cooperative planning, the city of Redding and Shasta County now are planning rival retail centers along Interstate 5.

But it's far from certain whether the north state will support one major new shopping center in the foreseeable future - let alone two - even after the global recession eases, some observers believe.

The greater Redding area will see only modest retail growth out through 2025, according to an economic study commissioned by the city earlier this decade, well before the recession took hold.

So the county could realize a revenue bonanza should it build its shopping center first and see major retailers leave the landlocked interior of Dana and Hilltop drives in Redding for better exposure in a new center with freeway frontage south of the city.

http://www.redding.com/news/2009/mar/01/shasta-county-redding-lay-groundwork-for-rival/

"It's massive," Baugh said, noting the Commons would be more than four times larger than the Shasta Outlets in Anderson. "The effects of it will be massive as well."

In November 2008 there were 3 retail shops closed in the Outlets, I drove through last month and there were 13 closed out of about 25, yes, I think the effects will be massive but not in good way.

Greg

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Re: Daily Digest - March 2

In my ongoing effort to understand I read this article http://www.wired.com/techbiz/it/magazine/17-03/wp_quant  It has GREAT clarity.  You'll have to read it completely to understand my next comment but here goes.  A few days before reading the article mentioned above I had gone back to a book I read a few years ago (The Art of War by Sun Tzu).  I think I went back to the book because I had been thinking about the likelyhood that China might stop buying US debt and what the implications of that might be.  Anyway, when I read this article I started to wonder if there might be some connection or thread connecting these events.

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Re: Daily Digest - March 2

KRon:

 I'm reading the article now, as for your post I would comment that the US is the worlds largest debtor nation, China, Japan and Korea are the largest creditor nations - prosperity follows the money. Take care

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Re: Daily Digest - March 2

The current crisis is a perfect oportunity for China in the Great Game.

What I think might play out is China and other SCO countries becoming
THE major global force(s). If Russia survives this meltdown I expect to
see them regain some ground with the former soviet states. East Europe
is on it's way to total economic collapse this very moment and will
most likely take out the rest of the EU as they have so much invested
in what they thought would be 'emerging economies/markets'.

Military is not the only
option for global domination. Take a look at international headlines
lately and notice how China is making major deals and
strengthening ties with South and Central America, Russia and Central Asia... even
Canada.

Pieces are falling everywhere. Who will be left to pick them up?

Checkmate!

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Re: Daily Digest - March 2

http://georgewashington2.blogspot.com/2009/03/economics-profession-bears-some.html

This article gets to the heart of how & why economists & politicians were clueless about the underlying problems in the economy.  

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Re: Daily Digest - March 2

http://abcnews.go.com/Business/Economy/story?id=6976743&page=1  

“Failing at Harvard: Ivy Cash King Tumbles -- Harvard University Pays the Price for Exotic Bets”

I wonder to what extent the mentality that has been running the Harvard Endowment is now prevailing in those Harvard grads in the present administration. 

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Re: Daily Digest - March 2
kron wrote:

In my ongoing effort to understand I read this article http://www.wired.com/techbiz/it/magazine/17-03/wp_quant  It has GREAT clarity.  You'll have to read it completely to understand my next comment but here goes.  A few days before reading the article mentioned above I had gone back to a book I read a few years ago (The Art of War by Sun Tzu).  I think I went back to the book because I had been thinking about the likelyhood that China might stop buying US debt and what the implications of that might be.  Anyway, when I read this article I started to wonder if there might be some connection or thread connecting these events.

 

Yikes!  You think Li was a monetary weapon ?  How ingenious if so.    And insidious.  Declare war on a nation without them even knowing it and sit back and watch them unravel....

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China is mobilizing its dollar resrves

Thanks for the daily updates Davo.

Further to the China article and comments from Ruhh, it was always on the cards that China would use this opportunity to pick up key resources. Why would they want flakey US paper when there are oil reserves, metals, farm land and fishery consesssions at firesale prices around the world. I guess they wouldn't even have to sell their existing dollar reserves, just transfer ownership. This shows the power of being a creditor in a world of debtors, they can't even enter the bidding.

Look out for a huge shift in the global power balance!

Cheers,

David

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Re: Daily Digest - March 2

Dow Jones crashes after AIG wipe-out



There are fears AIG's collapse could trigger another round of enormous losses.

There are fears AIG's collapse could trigger another round of enormous losses. (ABC News)

Wall Street's Dow Jones index has fallen below 7,000
points for the first time since 1997 after American insurance giant AIG
announced massive losses for 2008.

American International Group (AIG) posted a $US99 billion ($157
billion) loss for the final quarter of last year, the biggest quarterly
loss in US corporate history.

The Dow Jones Industrial Average tumbled 209 points, or nearly 3 per
cent, to 6,853 overnight as losses accelerated in morning trade.

The Nasdaq fell nearly 35 points, or 2.5 per cent, to 1,343.06.

London's FT 100 was also hit and ended the day 5 per cent lower to be at its lowest level in six years.

Meanwhile oil prices plunged almost 10 per cent; light sweet crude
for delivery in April slumped $US4.61 to close at $US40.15 a barrel.

AIG's staggering loss has prompted the US Treasury to make another
$47 billion in funds available to the company on top of the $238
billion already promised.

The US Government fears a collapse of the insurer could trigger
another round of enormous losses throughout the global financial system.

"The market doesn't like it because it shows how immersed the
government has become in managing a controlled burn of this zombie
organisation that is considered too systemically important to die of
natural causes," said Patrick O'Hare at Briefing.com.

The new plan is the fourth for AIG, which was the world's biggest
insurer before being hit with huge losses linked to the collapse of the
US real estate market and the economic downturn.

Robert Brusca at FAO Economics says the new government rescue is "a
bid to bolster the battered insurer, but its plan will expose US
taxpayers to more financial risk".

"The new deal, the government's fourth for AIG, represents a nearly
complete reversal from the one first laid out in mid-September," he added.

World markets were under pressure after British banking giant HSBC
said it was seeking a huge capital injection to survive the global
economic crisis.

HSBC revealed on Monday that it needs nearly billions of dollars of
new capital to withstand the financial crisis and announced 6,100 job
cuts after a profits collapse.

It is the biggest cash call ever made in the UK without being
underwritten by the Government and Europe's biggest bank is offering a
new batch of shares at a 48 per cent discount to the market.

HSBC has not participated in the state bailouts, but the deeply
discounted $28 billion rights issue sent the stock market into a panic,
with the share market in London falling to its lowest level in almost
six years.

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Re: Daily Digest - March 2

Stock market way down today, understandably.  Why gold down too, and dollar up?

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Re: Daily Digest - March 2

The average salary in Ukraine is $200/mo USD, yet food costs are similar to US prices. The situation is getting critical:

 http://www.nytimes.com/2009/03/02/world/europe/02ukraine.html

Quote:

Ukraine Teeters as Citizens Blame Banks and Government

Ukraine, once considered a worldwide symbol of an emerging, free-market democracy that had cast off authoritarianism, is teetering. And its predicament poses a real threat for other European economies and former Soviet republics.

The sudden, violent protests that have erupted elsewhere in Eastern Europe seem imminent here now, too. Across Kiev last week, people spoke of rising anger about the crisis and resentment toward a government that they said was more preoccupied with squabbling than with rallying the country.

The sign held by Vasily Kirilyuk, an unemployed plumber camped out with other antigovernment demonstrators here in the past week, summed up the pervasive frustration: “Get rid of them all,” it said.

Mr. Kirilyuk did not hesitate to take that further. “There will be a revolt,” he said. “And people will come because they are just fed up.” ....

It is not hard to understand why world leaders are increasingly worried about the discontent and the financial crisis in Ukraine, which has 46 million people and a highly strategic location. A small country like Latvia or Iceland is one thing, but a collapse in Ukraine could wreck what little investor confidence is left in Eastern Europe, whose formerly robust economies are being badly strained.

It could also cause neighboring Russia, which has close ethnic and linguistic ties to eastern and southern Ukraine, to try to inject itself into the country’s affairs. What is more, the Kremlin would be able to hold up Ukraine as an example of what happens when former Soviet republics follow a Western model of free-market democracy.

“Ukraine is a linchpin for stability in Europe,” said Olexiy Haran, a professor of comparative politics at Kiev Mohyla University. “It is a key player between the expanding European Union and Russia. To use an alarmist scenario, you could imagine a situation in Ukraine that Russia tried to exploit in order to dominate Ukraine. That would make for a very explosive situation on the border of the European Union.” 

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Re: Daily Digest - March 2

 ILLUSION OF REALITY by John Harris

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Re: Daily Digest - March 2

I've never actually watched Jim Cramer prior to today.  Is he having an uncharacteristic meltdown, or is he just...kind of a doofus?  Somebody get him a neckrub, STAT.

Man, the things you learn/see when you step outside the matrix...<wry grin> 

Sager 

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Re: China is mobilizing its dollar resrves
larina wrote:

Thanks for the daily updates Davo.

Further to the China article and comments from Ruhh, it was always on the cards that China would use this opportunity to pick up key resources. Why would they want flakey US paper when there are oil reserves, metals, farm land and fishery consesssions at firesale prices around the world. I guess they wouldn't even have to sell their existing dollar reserves, just transfer ownership. This shows the power of being a creditor in a world of debtors, they can't even enter the bidding.

Look out for a huge shift in the global power balance!

Cheers,

David

Perhaps learning Mandarin should be added to the different lists of things/skills to aquire for the crash?

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Re: Daily Digest - March 2

How is it going to come out good for China or Japan if the debtors never pay back their debts? I see China heading into a civil war, maybe Japan or Korea could make use of it depending what happens in north korea.

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Re: Daily Digest - March 2
FireJack wrote:

How is it going to come out good for China or Japan if the debtors never pay back their debts? 

Maybe they'll come to collect? Frown 

The article talks about China beginning to use that debt buy resources. Someone else will get stuck with them (eventually heading back to flood the US and trigger hyperinflation?)

FireJack wrote:

I see China heading into a
civil war, maybe Japan or Korea could make use of it depending what
happens in north korea.

I certainly hope not. That could be globally disastrous if others were to step in.

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Re: Daily Digest - March 2

http://www.express.co.uk/posts/view/86981/MI5-alert-on-bank-riots

MI5 ALERT ON BANK RIOTS

Sunday March 1,2009

By Geraint Jones

TOP secret contingency plans have been drawn up to counter the threat posed by a “summer of discontent” in Britain.

The “double-whammy”
of the worst economic crisis in living memory and a motley crew of
political extremists determined to stir up civil disorder has led to
the ­extraordinary step of the Army being put on ­standby.

MI5 and Special Branch are targeting activists they fear could inflame anger over job losses and payouts to failed bankers.

One of the most notorious anarchist websites, Class War, asks: “How to keep warm ­during the credit crunch? Burn a banker.”

Such remarks have rung alarm bells in Scotland Yard and the Ministry of Defence.

Intelligence
sources said the police, backed by MI5, are determined to stay on top
of a situation that could spiral out of control as the recession bites
deep.

The chilling prospect of soldiers being drafted on to the
streets has not been discounted, although it is regarded as a last
resort.

What worries emergency planners most is that the middle
classes, now struggling to cope with unemployment and repossessions,
may take to the streets with the disenfranchised.

The
source said “this potent cocktail is reminiscent of the poll tax riots
which fatally wounded Margaret Thatcher’s government in 1990”.

Last
night Scotland Yard vowed it was ready to face any threat. A source
said: “We do have a policing plan in place and we have riot police
officers trained for such measures.”

But other senior police leaders fear the force will be unable to cope.

Were that to be the case, the ­Government has a contingency plan to deploy troops on the streets of Britain’s major cities.

A senior source said: “This is a very real, and very serious, problem.

“I can tell you there have been crisis talks in Whitehall about this.

“Half
the senior officers in Britain have been warning the Home Secretary
about the dangerous effects that reducing police manpower may have this
summer, especially in the industrial heartlands.

“We are not
just talking about the problems of immigration and British jobs for
British worker. We are also talking about mass unemployment.

“In
many of our industrial cities, this will not be measured in the
hundreds, but in the thousands. With unemployment, comes the risk of
increased crime. Some forces, such as South Wales, have publically
­stated they would be swamped.

“Others are keeping it quiet, but you can be sure they are trying to make the Home Secretary listen, ­before it’s too late.”

The
“protest season” is due to ­begin on April 1 with the G20 Summit in
London next month, followed by the 60th anniversary of Nato in
Strasbourg a few days later. May Day is also ­potentially a flashpoint.

Ministers
cannot afford to allow ­latent public anger at Government policy to get
out of hand if they are to maintain credibility through what promises
to be ­Gordon Brown’s most testing period as Prime Minister.

The
Stop the War coalition, orchestrating the G20 protest, said: “The first
week of April could be a week of world leaders will never forget.”

The
British authorities want to avoid a repeat of the rioting that scarred
British cities in the 1980s Then, as now, the country was in recession
with rising unemployment and deep public hostility to perceived social
divisions.

Today that anger is focused on the banks, with their bonus culture surviving despite billions being paid in taxpayer bail-outs.

This has fomented in the outrage over news that senior executives will be rewarded for their failure.

Sir Fred Goodwin, former boss of RBS, has refused to hand back his £693,000-a-year-pension even as the ailing bank announced a £24billion loss last year, the single largest loss in British corporate history.

Early
warnings of trouble ahead came from the furore over last months
“British jobs for British workers” protest and wildcat strikes across
the country.

This week Britain’s most senior police officer
warned that the summer could bring a wave of protests orchestrated by
extremists in which ordinary people, fired by their own anger and fear
at the economic downturn – became “foot soldiers”.

Superintendent
David Hartshorn, who heads the Met’s public order branch, identified
the G20 as the possible start of a “summer of rage”.

Murray Benham, head of campaigns at the UK-based World Development Movement, accused Supt Hartshorn of “scaremongering”.

“Scaremongering from the police will not stop us because the price for failing is too high.

“People are understandably angry about the impact of the economic crisis on their jobs, savings and plans for the future.”

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Idiocy on Display (from Karl Deninger's market-ticker)

Idiocy On Display

Facebook Idiocy On Display

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Re: Daily Digest - March 2 - Respond to Wired Magazine Article

Kron,

 It seems to me that this article is another example of inaccurate and provocative journalism by using a title like, "The Formula that Killed Wall Street".  It tells us a lot of facts, but not the whole story.  It  simplifies this "perfect storm" situation which had been forming over decades into one single mathematical/statistical model.  Let me list just a partial list of causes:

* Incompetent FED chairman, who never let the market cleanse itself from these little bubbles, default hedge funds, etc. etc. who had been infatuated with his ability.

* Unregulated credit default swap market

* Greedy people in Wall Street

* Greedy people in the main street who partcipated in this giant ponzi schemes in all levels of societies from federal government to individual consumers

* Security Rating agencies not doing their jobs

* Mad participation in the creation of a giant bubble by everyone from top (our federal government, FED, Wall Street) to bottom (house flippers and mortgage lenders) while the FED was at sleep and incompetent.

* 8 years of incompetent leadership who misused and misdirected this nation's resources and energy to endeavours which have harmed the interests of people in this country

* Breakdown of ethical leaderships based on core principles, which have stood the test of time, from the top

* Yes, a math/statistical model, which Wall Street bankers used to engage in "casino investment and banking" to make more money 

What I see is a reflection of us as a society.  Sorry to say this, but the author of this article, Mr. Felix Salmon does not have any credibility to me as a journalist.

 Regards,

Presentmoment

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Rudd urges G20 to tackle bad bank debts

Rudd urges G20 to tackle bad bank debts

By Online parliamentary correspondent Emma Rodgers


Mr Rudd has urged leaders to tackle toxic debt at the upcoming G20 summit.

Mr Rudd has urged leaders to tackle toxic debt at the upcoming G20 summit. (AAP: Alan Porritt)

Prime Minister Kevin Rudd has urged world leaders
quickly deal with eradicating "toxic assets" from bank balance sheets
to ensure recovery from the global economic crisis.

Speaking at a business lunch in Sydney, Mr Rudd said toxic assets -
bad debts which are unlikely to be repaid - represent one of the
greatest challenges to economic recovery for domestically and
internationally.

He has urged leaders to tackle the issue at the upcoming G20 summit in early April.

"Dealing effectively with toxic assets and the balance sheets of
globally significant banks is fundamental to the recovery of private
credit markets and therefore to medium to long-term economic recovery
across the global economy and for the Australian economy," he said.

"The flow of global credit is restricted to Australia because of the
impact of toxic assets on the major global banks' balance sheets.

"Then economic growth is choked off and unemployment rises."

Mr Rudd wants governments, the private sector and international
financial institutions to work together to neutralise toxic assets.

"It is essential that action is rapid, comprehensive and global," he said.

Mr Rudd also told the lunch that it was becoming harder for
Australia to "resist the global economic tide" of worsening conditions
but Australia's economy was still strong in comparison to other
countries.

The release of tomorrow's National Accounts are expected to reveal
whether Australia is slipping into a recession, with some economists
predicting growth in the December quarter will be negative.

This afternoon the Reserve Bank of Australia has left interest rates
unchanged at 3.25 per cent, saying the country's financial systems
remained strong.

Farmer Brown's picture
Farmer Brown
Status: Martenson Brigade Member (Offline)
Joined: Nov 23 2008
Posts: 1503
11 Most expensive catastrophes in history (humor - sort of)

Tags: catastrophes in history

dickey45's picture
dickey45
Status: Bronze Member (Offline)
Joined: Oct 12 2008
Posts: 77
Re: Daily Digest - March 2

Funny, but it is missing a caption of a chimp with 750B between #1 and #2.

 

Just sayin.

dickey45's picture
dickey45
Status: Bronze Member (Offline)
Joined: Oct 12 2008
Posts: 77
Re: Daily Digest - March 2

Oh, and #1 should be at least 1 Trillion for the Iraq war - with a chimp and Darth Vader.

presentmoment's picture
presentmoment
Status: Bronze Member (Offline)
Joined: Sep 22 2008
Posts: 57
Re: Daily Digest - March 2 - Better Estimate for Iraq War

 Dickey45,

 I read this article on the cost of Iraq war by Linda J. Bilmes and Joseph E. Stiglitz a year ago.  They said it was likely to top $3 trillion, not $1 trillion.  And that's a conservative estimate. They said:

 

There is no such thing as a free lunch, and there is no such thing as a free war. The Iraq adventure has seriously weakened the U.S. economy, whose woes now go far beyond loose mortgage lending. You can't spend $3 trillion -- yes, $3 trillion -- on a failed war abroad and not feel the pain at home.

Here is a link to a full article:

 http://www.washingtonpost.com/wp-dyn/content/article/2008/03/07/AR2008030702846.html

It seems to me that going to a war based on lies and delusions while engaging "casino investment/banking" financial systems with no accountabilities for almost a decade had just pushed us over the threshhold to break the system. 

Presentmoment

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SagerXX
Status: Diamond Member (Offline)
Joined: Feb 11 2009
Posts: 2219
Re: Daily Digest - March 2

Me on March 2: "I've never actually watched Jim Cramer prior to today.  Is he having an uncharacteristic meltdown, or is he just...kind of a doofus? "

Me on March 4th (after Cramer's appearance on the morning show, the White House's rebuttal, and Cramer's re-rebuttal):  Gee, he *is* a doofus.  Blaming Obama for the collapse of the bubble is like blaming Churchill for the Anschluss.

dickey45's picture
dickey45
Status: Bronze Member (Offline)
Joined: Oct 12 2008
Posts: 77
Re: Daily Digest - March 2

Just watched Daily Show tonight and clips of Cramer are pretty damning....

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