Daily Digest

Daily Digest - May 27

Wednesday, May 27, 2009, 11:12 AM
  • AIN'T NO REST FOR THE WICKED
  • Jeff Macke Goes Nuts On Dennis Kneale (Video)
  • Housing: More problems ahead for the low end?
  • Geithner to DeMint: Bailouts may never end, no exit plans...
  • Samuelson: Insolvency? Bring it on.
  • Without Meters, Fresno Water Beyond Measure
  • A California Town Squeezes Water From A Drought
  • Pension Terminators?
  • In Others' Hands
  • Is Factory Farming a Risk Too Far?
  • China unveils first sovereign credit rating standards (H/T PineCarr)
  • Agrichemical Industry Attacks White House Organic Garden
  • Good Methods for Finding Local Food
  • LocalHarvest.Org

Economy

AIN'T NO REST FOR THE WICKED 

We have been misled. If you were wicked, taking risks beyond the comprehension of average Americans and endangering the entire worldwide financial system, money does grow on trees and there is plenty for free. Money can be printed out of thin air by the wicked and doled out to the wicked. The definition of wicked is:

Evil in principle or practice; deviating from morality; contrary to the moral or divine law; addicted to vice or sin; sinful; immoral; profligate

To put it in the most basic terms, what has happened in this country in the last decade is that evil wicked people have attained positions of power in government, banking, and industry and have committed sins against humanity for their own glory and enrichment. Those who should have stood up to these evil doers are just as guilty as the engineer driving the train to Auschwitz. Albert Einstein understood this danger:

“The world is a dangerous place to live; not because of the people who are evil, but because of the people who don't do anything about it.”

There have always been evil people. Adolf Hitler, Joseph Stalin, Bernie Madoff, Dennis Kozlowski, Charles Manson, Charles Keating Jr., Joe McCarthy, Jeff Skilling, Bernie Ebbers, Jim Jones, Michael Milken, and Ivan Boesky come to mind. Some committed horrendous atrocities, others stole billions, others destroyed reputations, and others lived lives of decadence and immorality. The reason they are all household names is because they were able to commit their crimes because other people didn’t do anything to stop them. All of these men could have been stopped if citizens, coworkers, auditors, Prime Ministers, government regulators, Boards of Directors, Congressmen, or family members had been brave enough and moral enough to make a stand against their evil deeds. The one and only poem that ever made an impression on me in high school was The Hangman by Maurice Ogden. Below are the last stanzas. Evil can only flourish in society if we allow it to flourish. A society united against wickedness, dishonesty, corruption and wantonness could stand the test of time. I’m afraid our Great American Republic has allowed evil to flourish, and the hangman’s scaffold has grown to

Jeff Macke Goes Nuts On Dennis Kneale (Video) 

Fall in Libor May Overstate Improvement in Interbank Lending Market

“Libor’s decline is not necessarily a sign of improving bank credit or the willingness of banks to lend to each other,” said Vogel, whose firm is one of the 10 biggest underwriters of Fannie Mae, Freddie Mac and other U.S. government agency debt. “It’s a sign of improving bank liquidity as customer deposit growth replaces borrowing in the short-term money markets.”

Housing: More problems ahead for the low end? 

Bob_in_MA points out some interesting comments on low price areas in the WaPo article: Housing Bust Leaves Most Sellers at a Loss

In the Virginia and Maryland suburbs, prices for single-family homes are down to where they were five years ago. In Prince William and Loudoun counties, a flood of foreclosures has pushed prices so low that bargain hunters have flocked there in recent months, helping to boost sales.

But while in past slumps a surge in sales has signaled the start of a rebound, this downturn is unlike any in recent times and it's premature to call a recovery, said Barry Merchant, senior housing policy analyst at the Virginia Housing Development Authority.

The encouraging signs have been offset by more troublesome ones, he said. After tapering off for a few months, foreclosures in Northern Virginia are starting to creep up again and may keep climbing now that several lenders have lifted foreclosure moratoriums.

Meanwhile, the year-over-year sales increases of the past few months are petering out in some Virginia suburbs, suggesting that interest in the fire-sale prices may have peaked, Merchant said. In April, Loudoun sales declined 12.5 percent from a year earlier.

"If sales are not increasing and foreclosures are on the uptick, then the question is: 'Is there another shoe to fall?' " Merchant said. "Maybe what we were hoping was the bottom was just a bump on the way down."

It will be interesting to see if sales in the low end areas start to decline after the recent reports of booming sales to another round of investors and first time buyers...

...The low end of the real estate market [in Phoenix] — and in some equally hard-hit places like inland California and coastal Florida — is becoming as wild as anything during the boom.

And:

...Record or near-record-high sales this spring in many of the [California] Bay Area’s most affordable, foreclosure-heavy communities.

And:

... the number of single-family houses that resold last month was at record or near-record-high levels for an April in many of the more affordable, foreclosure-heavy [Southern California] inland markets.

Geithner to DeMint: Bailouts may never end, no exit plans...(Video)

In 1994, 10 percent of American pigs lived out their brief lives in vast factory farms. Only seven years later, in 2001, 72 percent did. The percentage is even higher today.

It's now known the virus that caused the swine flu outbreak in Mexico is a direct descendant of one that was first identified on an industrial-scale pig-raising facility in North Carolina in 1998.

Human beings were hardly prey to any severe epidemic diseases at all until they started domesticating animals around 10,000 years ago. Hunter-and-gatherer groups of a 100 or less were a poor target for diseases that killed their hosts fast, for they would quickly run out of potential hosts and die off themselves.

The giant corporations that drove most small hog-breeders out of business in the United States are now active all over the world. They are the ideal environment to maximize new mutations among diseases.

Just like entering a war with no exit plan, government "involvement" in private enterprise will prove to be just as disastrous, if not more so.

In fact, this is truly nation changing/ending material. What other downturn in our history has seen such wholesale buying and propping of “private” enterprise? None, and thus we are setting sail on a path that has not be traveled before, one that already has changed our nation. The effects of which will be permanent, thus no exit plan required (LOL).

What Geithner describes here is NOT just a rolling over of funds, but if payback is received and given to the “general fund” (i.e. SPENT), and they continue to dole out the “headroom” amount up to the $700 billion cap, then that makes the $700 billion TARP A POTENTIALLY INFINITE SUM. That’s no roll-over he’s describing there Senator, wake the heck up!

Samuelson: Insolvency? Bring it on.

A couple thoughts. First, I was recently at a dinner with a retired very senior Member of Congress, who – like Samuelson – predicted that it would take a crisis to spur Congress to action. Congress, he said, is like a high schooler waiting until the night before the exam to study.

Without Meters, Fresno Water Beyond Measure

With concerns over the future of California's water supply, Gov. Arnold Schwarzenegger is pushing for all residents to reduce their water consumption 20 percent by 2020.

But that could be a tough goal to meet when there are still cities in the state without residential waters meters. Even the state capitol, Sacramento, is not expected to have meters fully installed until 2025.

In the arid San Joaquin Valley, south of Sacramento, 55 percent of residents are currently not metered. Fresno, the region's largest city, charges single-family households a flat rate, regardless of how much water they use.

And this frustrates Martin McIntyre, former head of Fresno's water department.

"Can you imagine what our energy consumption would be like if electricity was at a flat rate?" he asks.

A California Town Squeezes Water From A Drought 

Morning Edition, May 26, 2009 · California is in the third year of a drought, and many cities and towns are calling for various forms of water rations.

But the northern California coastal community of Bolinas had to learn water conservation the really hard way. That's because the town almost dried up earlier this year.

The beginning of the rainy season turned into one of the driest winter periods on record for Bolinas. Every day, Bill Pierce, a 25-year veteran of the Bolinas Community Public Utility District, checked the town's main water source, the Arroyo Hondo Creek. But all he could do was pray for rain.

It's not easy finding the creek that slakes the village thirst. You drive up a narrow Jeep trail, then walk through dense stands of old growth Douglas fir until you stop in a clearing. It looks like an old swimming hole, 20 feet wide, about 28 feet long and 3 feet deep. It was created in the 1920s by a dam, only 15 feet wide.

During those dry months, Pierce watched the creek flow dwindle to a trickle, when it should have been roaring. By the end of January, the town had completely drained one of its two emergency reservoirs.

"We're in deep trouble here," Pierce finally realized. "Basically we were out of water, we just hadn't consumed it all yet."

Pierce figured, without any new rain, Bolinas would run out of water by the end of April. So he calculated the amount of water available, which needed to be spread out over 300 days until the next big rains were expected. And then he divided that number by the 600 households in town.

He came up with 150 gallons per day per house.

The average U.S. household of four uses about 400 gallons a day. Bolinas was already pretty good about water use, coming in below the national average. But now, residents had to be even more careful.

Mandatory rationing went into effect immediately. It required that every household (or water hook up) use 150 gallons a day or less, regardless of how many people it supported. All businesses and the town's only school were told to cut usage by 25 percent, which is the more standard way of rationing.

Home meters were checked randomly every day. If you went over the limit, you got a written notice. You were allowed only two. The third time, your water could be shut off. That's pretty harsh. But Pierce says, "There's only so much water. We've never been here before. This is new ground for us. It's new ground for most water districts, everywhere."

Before the rationing kicked in, a personal notification went out to every home that was already using more than the rationed amount, including the Zimmer-Demmerle family.

"I was surprised because not everybody got the letter, hand delivered, to their house and we were one of them," says Maud Zimmer.

Zimmer, her husband Bob Demmerle, and their two daughters, 9-year-old Ibarra and 5-year-old Zetana live in a house Demmerle built with water conservation in mind. They have low-flow toilets and a front-loader washing machine. But that wasn't enough.

"I realized we were going to have to change," says Zimmer.

(More)

Pension Terminators?

According to the CAW, the tentative deal with GM Canada provides that the starting pay rate for new hires will be 70 percent of the established rate with increases of 5 percent per year for six years. New hires will be entitled to the same retiree health benefits, funded either through a new Health Care Trust or by the company.

The deal freezes pensions until 2015, eliminates semi-private hospital coverage and ends tuition assistance for workers joining the company after Jan. 1, 2010. The CAW also said a $3,500 vacation compensation payment has been cut to offset other costs, including pensions.

Under the contract, the union and the company have committed to negotiate a Health Care Trust agreement to provide retiree health care benefits in the future, much like the automaker's terms with U.S. workers. GM Canada also agreed to restructure its underfunded pension plan within a year and move to funding the plan on a solvency basis comparable to the plans at Ford and Chrysler.

Bloomberg reported that Canada’s federal government won’t finance pension benefits retained in a tentative labor accord with GM.

On May 10th, USA Today reported that more companies are freezing pensions:

The number of companies that have frozen their traditional pension plans has accelerated sharply this year, a trend that will likely continue as companies wrestle with declining profits and poor investment returns.

At least 16 companies have announced plans to freeze their pensions so far this year, vs. 18 for all of 2008. Last week, Wells Fargo told its employees that their pension plans will stop accruing benefits July 1.

(More)

In Others' Hands

The Oxford-educated Mr Fisher, an outspoken free-marketer and believer in the Schumpeterian process of "creative destruction", has been running a fervent campaign to alert Americans to the "very big hole" in unfunded pension and health-care liabilities built up by a careless political class over the years.

"We at the Dallas Fed believe the total is over $99 trillion," he said in February.

Is Factory Farming a Risk Too Far?

In 1994, 10 percent of American pigs lived out their brief lives in vast factory farms. Only seven years later, in 2001, 72 percent did. The percentage is even higher today.

It's now known the virus that caused the swine flu outbreak in Mexico is a direct descendant of one that was first identified on an industrial-scale pig-raising facility in North Carolina in 1998.

Human beings were hardly prey to any severe epidemic diseases at all until they started domesticating animals around 10,000 years ago. Hunter-and-gatherer groups of a 100 or less were a poor target for diseases that killed their hosts fast, for they would quickly run out of potential hosts and die off themselves.

The giant corporations that drove most small hog-breeders out of business in the United States are now active all over the world. They are the ideal environment to maximize new mutations among diseases.

China unveils first sovereign credit rating standards (H/T PineCarr)

China View reports that China unveils first sovereign credit rating standards.

BEIJING, May 23 (Xinhua) -- China unveiled Saturday credit rating standards for the sovereignty entity of a central government, the first sovereign credit rating standards in China, aiming broader participation in global credit rating.

The standards were announced by Dagong Global Credit Rating Co., Ltd, one of the first domestic rating agencies in China.

The sovereign credit rating standards would be able to evaluate the willingness and ability of a central government to repay its commercial financial debts as stipulated in contracts, said the company.

The rating results could reflect the relative possibility of a central government to default as a debtor, and the rating is based on the country's overall credit value, according to Dagong.

Agrichemical Industry Attacks White House Organic Garden

The battle lines were drawn in March when an agrichemical industry group chided Michelle Obama for not using “crop protection” products on her White House garden. Now Croplife.org, an agricultural industry Web site, has launched a “letter writing campaign” among members.

“The garden is a great idea and the photo op of the First Lady and local elementary schoolchildren digging up the ground was precious,” the campaign informs Croplife readers. But, they go on to ask, “did you realize that it will be an organic garden?” According to Croplife, that just won’t do: “... send your own letter, sharing the benefits of modern, conventional agriculture.”

Good Methods for Finding Local Food 

Unless you grow a lot of your own food, it can be difficult to distinguish what came from your friendly local farmer from food produced 2,000 miles away.

Increasingly, grocery stores are helping people get smarter about food. Many are labeling produce as local, organic or conventionally grown. You can also find local food by joining a CSA (Community Supported Agriculture) network. If you frequent farmers’ markets which may import and may grow local, you can learn the seasons -- it needs to be in season to be local. This will only trip you up when someone ships apples from Washington to sell in New York, which harvests apples at the same time.

If you want to accelerate this learning process, go straight to the great resource: The Natural Resource Defense Council’s Local Food database. There you can type in your state and the month, and get a list of produce that a shopper could reasonably expect to see harvested somewhere in that state at that time.

In Illinois, by late May, for instance, you could expect to find asparagus, cabbage, cherries, greens, leeks, lettuce, onions, peas, radishes, rhubarb, spinach, sprouts, squash and strawberries. But in Texas, in late May, look for a fruitier selection -- blackberries, blueberries, cabbage, cantaloupes, carrots, cucumber, grapefruit, herbs, honeydew melon, lettuce, mushrooms, nectarines, onions, oranges, peaches, pears, peppers, potatoes, summer squash, sweet potatoes, tomatoes, turnips and watermelon.

LocalHarvest.Org 

24 Comments

dcm's picture
dcm
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Re: Daily Digest - May 27

"Those who should have stood up to these evil doers are just as guilty as the engineer driving the train to Auschwitz. Albert Einstein understood this danger:

“The world is a dangerous place to live; not because of the people who are evil, but because of the people who don't do anything about it.”

 

- reminds me of my first post

- "those who should have stood up..."

- isn't that all of us?

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Re: Daily Digest - May 27

The Jeff Macke video is amazing!  If it's staged, it's done well.  If not, he finally may have seen what many here (mostly on the Conspiracy threads) have been saying/seeing for a while.  Nothing is REAL!  The markets are so disgustingly manipulated that it doesn't matter any longer.  Conspiracy has become reality.  Until the rest of the people wake up, the manipulation of the people will continue unabated.  The "Looting" as CM called it in this report says it all:

http://www.peakprosperity.com/blog/america-being-looted/16444

Direct Quote from report in which I bold/italicize/underline the introduction to many of you as an aspect of what many of us have dubbed (and been continuously bashed about) the NWO:

-Begin CM-

My cynicism stems from the fact that, as I string together the dots comprising this entire bailout fiasco, I can come to only one conclusion: Our “public policy” is not being conducted in the interests of the people, by the people, and for the people.

Public policy appears to be in the grip of a very powerful and self-interested cabal that seemingly has no concern for the future or the health of this country and does not even see the need to be cautious enough to mask its efforts.

The fact that the bailout trajectory did not waver in the slightest while passing from the Bush to the Obama administration indicates that the bailout is not a function of who’s in political power, it is a function of something else, of some other power.

I fear that Simon Johnson has nailed it: “[The] recovery will fail unless we break the financial oligarchy that is blocking essential reform.”

By continuing on our current path, using the same people who created the mess to clean up the mess, we are wasting time, we are wasting money, and we are wasting opportunity.  Worse, we are risking the very sort of public backlash that has been thankfully missing from our cultural landscape for a long, long time.

Now, if you’ll excuse me, I have to go jogging to see if I can catch up with my cynicism.

-End-

IMO, we need to find a way (ANY way) to end the power of the "cabal". 

 

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Re: Daily Digest - May 27

I watched the Macke video, and frankly am unable to make heads or tails of it.  It reminded me of street people I've encountered from time to time.  I'm sure they have rich inner dialogues, but the rest of us can't benefit from their insights because they have lost the ability to communicate.  Macke certainly seemed incapable of doing so.  Did someone else find something sensible in the video?

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Re: Daily Digest - May 27

 Hello Doug:

I had to watch it about 4 times. This stuck out though. Macke: ”I dismissed this entire game as entire idiocy…that just occurred to me this morning."

As I watched the esteemed guests things like 'the stress test was a home run' and 'residential housing has bottomed' really make me dismiss the entire game as idiocy. 

Maybe I'm miss reading it? But that to me indicates that he woke up and realized things aren't the way he thought them to be.

Lately there have been several things in the media and on the blogs that really make me think that the "wink wink, nod, nod" of the NINJA loan era is not limited to mortgages. The naked short videos and this video and some other articles really give me pause.

I tend to read people more by what they do or don't do than by what they say. I read that 10% of communication is verbal and 90% is looks, expression and posture.

The anger and the band-aid peeling off comment confirmed my conviction. I took the band-aid peeling off to mean "don't you get it?" His anger seemed fitting, I'd be PO'd if I devoted my life to something I beleived in only to find out it wasn't built on honesty.

If I had his email I'd ask, I'm not bashful. But that is my take.

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mpelchat
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Re: Daily Digest - May 27

Macke Got canned for his outburst.

http://www.businessinsider.com/confirmed-jeff-macke-is-done-at-cnbc-2009-5

Must have been allergic to the "Red Pill".

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Mike Pilat
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Re: Daily Digest - May 27

For those desiring some interesting background information, see this article: 

http://www.theoildrum.com/node/5431

It puts a loaned money system in historical context and also discusses the interplay between our financial, monetary, and energy systems. Most interesting to me was the fact that it is one of the (very) few sources I have seen that, like Chris (and Jim Puplava), discusses the fact that loaned money systems were prohibited by many religions throughout the Centuries. Perhaps they figured something out long ago that we still don't seem to understand today. Doah!

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Re: Daily Digest - May 27

Davos,

Quote:

As I watched the esteemed guests things like 'the stress test was a home run' and 'residential housing has bottomed' really make me dismiss the entire game as idiocy. 

Maybe I'm miss reading it? But that to me indicates that he woke up and realized things aren't the way he thought them to be.

That's about what I got out of it also.  And, I certainly share his frustration and opinions about the financial press.  I just wish he would have used his 'aha' moment to articulate a coherent thesis on why its all gone wrong and maybe what to do about it.  Instead, he seemed incapable of stringing two thoughts together.

Davos's picture
Davos
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Re: Daily Digest - May 27

 Hello Doug:

Me 2!!!!!!

His manorisms, head shaking, eye blinking, tone modulation and condescending voice reminded me of the character Perry Cox on Scrubs. But like Marsh said, he just doens't have that actors ability or good lines to make people feel as stupid.

But it was a good stream/watch, we are waiting on the next disk/season from NetFlix.

LogansRun's picture
LogansRun
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Re: Daily Digest - May 27

Davos/Doug,

I think you guys hit it.  His reactions were like "who cares what anyone says....it's BS!"  And it's too bad that he couldn't just come out with an explanation, but I guess I probably looked/acted the same the day I woke up and realized.....it's FAKE! 

What's amazing to me is that I used to watch him on the different programs and think "what an idiot"!  The Koolaid was intervenous with him.  I have to say I feel sorry for the guy now.  Let's just pray more people wake up soon like he seems to have done and start to react/move.

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Re: Daily Digest - May 27

I think this explanation from the comment section explains it perfectly.... it was a little confusing at first though

 

"I think Macke's saying that the market is acting so crazy that it can only be caused by insane people and heavy manipulation, and Kneale knows this, but still insists on having retards talk on his show and explain their "logical" explanations. The car guys are the same thing, where they give a long complicated story to explain how things are going and how they predict, but this is all to confuse people rather than simply saying that things are going down the toilet on a turd surf board.

I'm with Macke, it's mental."

 

Mike

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Re: Daily Digest - May 27
Mike Pilat wrote:

...

Most interesting to me was the fact that it is one of the (very) few sources I have seen that, like Chris (and Jim Puplava), discusses the fact that loaned money systems were prohibited by many religions throughout the Centuries. Perhaps they figured something out long ago that we still don't seem to understand today. Doah!

The West in particular has been guilty of throwing the baby out with the bath water when it comes to religion.

Religion was the vehicle by which communities focused on distant goals and worked together for a common cause (albeit to serve a Deity of some type) and in the rush to rid ourselves of anything to do with it we have thrown away many years of sound principals.

Religion developed many concepts based on many hundreds of years of use. It never saw the need to 'prove' these things or re-test them as they simply worked for the masses. The focus on families are the cornerstone of a society etc etc etc.

Our own repugnance at anything religious means we have abandoned anything not 'proven' by way of data analysis or if not viewed through 'modern' eye's - instead of abandoning concepts and beliefs only when we have fully proved the new, we seem to have abandoned almost anything if it even remotely is associated with religion.

While I'm not an advocate of return to much of the dogma baggage that went with religion (and I'm the first to admit - there is a LOT of it), I am an advocate of returning to systems that did work at least until a new and better system is developed - I hold this ideal in most things. Usury was quite universal in it's banning by most of the worlds major religions - that alone must ring an alarm bell of some type - since most religions seems to have issues with one another somewhere along the line yet when it comes to interest paid on money they stand fairly well united!

Michael Hudson is someone whom I quite admire because I have a new found appreciation for historians. I used to think history was a waste of time when i was younger and more stupid *sigh*

Michael Hudson covers some good stuff here (this was posted here a while back):

Modern society has become so forward focused that we have rejected much from the past and have modeled our futures on smaller and smaller slices of 'current data' rather than look to history for any foundation. Religion, which is historically founded in it's wisdom get trampled in the path to escape looking to history as a means of projecting the future.

The book 'The Fourth Turning' which Jim Puplava has mentioned a few times on FSN broadcasts is quite an eye opener when it talks about cycles and how we have progressed (if you can call it that) from kaotic time, to cyclic time and now to linear time which is why we have abandoned looking to repeat patterns anymore. (I do find the book tough going actually)

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Re: Daily Digest - May 27

Hey Mike:

Kneale looked a little hurt/"pouty" faced. I have to state like you did: There wasn't one expert opinion that I agreed with, I don't think the stress tests were stressful enough to be a test and I'll let Hugh Hendry impart my thoughts on bottom picking, especially after seeing the latest housing stats. 

I always thought the market neaded to bounce a few times and then trend up before a bottom was picked. Seems that "experts" today can say we have bottomed out thinking that next month can't be worse since this one was really bad or not as bad as last.

I did catch Kneale say 50 or 100 or 500 economists (forgot #) surveyed and they said.....then he added but economists have been wrong before. My comments (might even be the same 50/100 or 500 that didn't see this train wreck coming). But it caught me by surprise and I wonder if it wasn't said to appease or calm down Macke.

Man, I'm sounding like some Monday night QB on TV - and I HATE sports!

When they said the credit market was thawing I about laughed. Here are some Yves thoughts on that:

What's clear to me (and I speak with dozens and dozens of business owners) is that virtually no one is borrowing money. Those that want to can't get it. I know of one small builder that sells start-up homes. Business is decent for them now. They have no debt and plenty of cash. They would be buying up parcels of land right now but had their credit cut off by one of the big banks. This is a typical story I hear. So if a good small company with stable cash flows and no debt can't borrow money, there's little reason to believe big companies can borrow at will from banks. They've had to go to the bond markets, and there only the strongest are successful.

And here is more on Libor 

“Libor’s decline is not necessarily a sign of improving bank credit or the willingness of banks to lend to each other,” said Vogel, whose firm is one of the 10 biggest underwriters of Fannie Mae, Freddie Mac and other U.S. government agency debt. “It’s a sign of improving bank liquidity as customer deposit growth replaces borrowing in the short-term money markets.”
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Jeff Macke had a 'Howard Beale' moment - "I'm as mad as hell!"

Jeff Macke Goes Nuts On Dennis Kneale
http://www.michaelcovel.com/2009/05/26/jeff-macke-goes-nuts-on-dennis-kneale/

So what was Macke really saying?
He had a revelation and came to the conclusion that the whole financial system is rigged and it didn't matter what anyone said that the market is a congame and he and CNBC (Fast Money) have been part of that game.

In reality Jeff Macke had a 'Howard Beale' moment...

An now...

CONFIRMED: Jeff Macke Is Finished At CNBC

http://www.businessinsider.com/confirmed-jeff-macke-is-done-at-cnbc-2009-5

"We still don't know how the events transpired, from Tuesday night's bizarre performance to now, but we've confirmed with a source familiar with Jeff Macke's thinking that the Fast Money guest is done at CNBC..."

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Re: Daily Digest - May 27

CNBC'S DYLAN RATIGAN FIRED FOR EXPOSING FRAUD IN THE ECONOMY, This is a freaking outrage!!!!

http://life.atlantafalcons.com/index.php?showtopic=3839790

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Re: Daily Digest - May 27

GM just days away from bankruptcy

By Kim Landers for AM


Sliding into bankruptcy: The GM headquarters in Detroit, Michigan (Reuters: Rebecca Cook, file photo)

Troubled car giant General Motors has moved closer to filing one of the largest and most far reaching bankruptcies in US history.

The company's battle to restructure has been dealt a blow, with investors refusing to exchange their debt for company shares.

GM's board meets this week and the 100-year-old company is expected to file for bankruptcy within days.

Keith Crosato is a GM worker who has already been laid off.

"No, I don't think there's going to be a choice. I'm here to hear what they have to say, but I think they're going to go into bankruptcy," he said.

Analysts agree it seems inevitable.

John Pottow is a professor of law, specialising in bankruptcy, at the University of Michigan. He says GM has run out of options.

"Lawyers don't like to bet, but I would bet on it," he said.

"I think some people misunderstand, and think 'Oh, isn't this terrible, now they're going to have to file for bankruptcy'.

"They were planning on doing this for quite some time."

Already propped up by $US25 billion in Government loans, the Obama administration says GM will only get more money if it submits to massive restructuring.

"In bankruptcy, General Motors will be able to complete with greater speed its restructuring plan that is already afoot, and that includes such changes as scrapping its moribund brands, selling off some of its non-core assets - like those European Opel and Vauxhall brands - and closing its bloated dealer distribution network in the United States," Professor Pottow said.

GM's restructuring has hit a hurdle because its bondholders have rejected its request to forego the $US34 billion they are owed in exchange for 10 per cent of stock.

The bankruptcy filing could leave the US Government owning up to 70 per cent of America's biggest car maker, prompting some to dub the car giant 'Government Motors'.

"It's unprecedented to have the government standing in a 70 per cent ownership position. Really, it's an effective nationalisation of General Motors," Professor Pottow said.

General Motors lost its place as the world's number one carmaker to Toyota last year.

GM shares have lost more than 60 per cent this year and if it files for bankruptcy the car company will be removed from the Dow Jones Industrial Average.

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pinecarr
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Re: Daily Digest - May 27

The Macke video was very strange.  Logansrun , I think you may have hit it right in suggesting that they may have caught his initial reaction to piercing through the illusion.  Seeing the truth, and realizing that much that one believed to be true is a lie, will upset one's equilibrium!  I can't help but  feel sorry for the guy too!

Davos, thanks for the links to those additional videos in post #4 above.  The one on Fox (I think?) where the financial analyst discusses the apparent market manipulation, and that it would have taken billions to move the market like that, was incredible.  What a refreshing change from the line of BS we're normally fed!  Kind of wonderful to have someone on a mainstream show at least momentarily resolve the cognitive dissonance we live with.

I used to feel sorry for people in certain other countries who are fed such strong doses of nationalistic propoganda.  I used to think "How can they be so ignorant? Can't they see they are beng brainwashed?"  Talk about being clueless to the BS we've been fed, and the illusion we've been living. 

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Davos
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Re: Daily Digest - May 27

 Hello PineCarr:

Yeah, me too, I suppose in some situations there are no borders.

I suppose I should compile an entire collection of these, but for now, here is another, a H/T from iDoctor. 

 

Ratigan: Suckers' rally. No question. That's not an indictment of the judgement of the market. That's just my perception of the ability of the banks to function in a timely fashion, the ability to create meaningful amounts of jobs in the immediate future, and the as-yet unrecognized meaningful losses to come in commercial real-estate and other asset classes...

 

I'tll be quite interesting to see this all play out. Sacramento's main psychiatric hospital is closing, cops being laid off, prisons emptied and now some of the media is putting 1 + 1 together. The otherday I posted that " I for see only a devalued dollar which will drive commodity prices north. WAY NORTH. I see Zimbabwe purchasing power." only to read this today.

Take care.

How is the garden? 

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pinecarr
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Re: Daily Digest - May 27

Hi Davos-

   The garden is coming along, a little more slowly than I'd like,  but it is hard to juggle everything! (Hard to straddle 2 realities at once!)  I just cross my fingers that things will go down slowly enough that this year can be a "learning" year, and not a "you're depending on this" year!  On the bright side, my hubby has been helping me more...he may not be totally sold to my perception of how things are unfolding, but he tilled me a big garden for Mother's Day.  So he gets brownie points for that!

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VeganDB12
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Posts: 742
Re: Daily Digest - May 27-Factory Farming

Guys you are waaayyyy ahead of me on the finance stuff so I will just read and learn.

Factory Farming I have followed for several years.  Diseases reportedly originating in animals and transferred to humans during farming/domestication include (of course not limited to....)

the common cold, leprosy, tuberculosis,  measles, helicobacter pylori (common cause of peptic ulcers and stomach cancer,  antibiotic resistance in E. Coli and Salmonella (antibiotics used to make animals big and to fight infection in close quarters), HIV.......the list goes on.

My primary source is Dr. Greger's bird flu book (www.birdflubook.com) and his many lectures but he has over 3,000 references in his book and is a Cornell and Tufts trained physician and seems to have a lot on the ball. He presented at NY Medical College and other schools in the area and has been preaching the word about zoonotic diseases for years. However, he is an AR activist (so am I) so be forewarned.   However, as as a physician I respect what he has to say as well. 

I think more money invested in humane farming methods (if you can call it that) could really help keep these animals healthier and maybe make us less susceptible to their diseases.  But it will require people paying a few more pennies at MacD's, BK and that ain't gonna happen soon is it?  Personally I feel bad for the pigs too but that is my bias and my agenda in my other life.

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deanomacg
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Re: Daily Digest - May 27

Not to cast aspersions but it's only too apparent that Macke  in the interview was badly tweaking; with teeth clenched and twitches of all manner, he is the poster child of cocaine or amphetamine use. Obviously he had a bit more than he could deal with just before his blathering to Kneale. I have always trmendously enjoyed Macke... really a shame to see him so embarass himself. My advice... back off on the juice and get a few days of sleep my friend!

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Damnthematrix
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Posts: 3998
Re: Daily Digest - May 27
US 10 year bond yields have risen from 3.18% to 3.72% in 5 working days.
 
Yield Curve Steepens to Record as Debt Sales Surge
By Dakin Campbell

May 27 (Bloomberg) -- The difference in yields between Treasury two- and 10-year notes widened to a record on concern surging sales of U.S. debt will overwhelm the Federal Reserve’s efforts to keep borrowing costs low.

The so-called yield curve steepened to 2.75 percentage points, surpassing the previous record of 2.74 percentage points set on Aug. 13, 2003. Yields on 10-year notes have risen more than 100 basis points since Fed officials said in March they would buy up to $300 billion of U.S. debt over six months to drive consumer rates down and lift the economy from recession.

 

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grl
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Re: Daily Digest - May 27

 I happened to see that Macke piece as it aired (and I am not even a big watcher of CNBC - just happened to be tuned it) Whoa, my jaw was hangin' by a thread. I like Mpelchat's take - it was an allergic reaction to the red pill. Unfortunately, I think the real truth is a bit more mundane. 

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gregroberts
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Posts: 1024
Re: Daily Digest - May 27

U.S. economy has stepped back from brink: Obama

One step back, two steps forward.

"BEVERLY HILLS, California (Reuters) – The U.S. economy is showing signs of stabilizing after suffering the worst economic crisis in decades, President Barack Obama said on Wednesday.

"When you look at the economy right now, I think it's safe to say we have stepped back from the brink, that there is some calm that didn't exist before," Obama said at a fund-raiser for the Democratic National Committee.

Obama took credit for a large share of the turnaround, saying his young administration had accomplished as much or more in its first four months as any administration since Franklin Delano Roosevelt's in the 1930s."

http://news.yahoo.com/s/nm/20090528/pl_nm/us_obama_economy

Calm before the storm? I wonder if he'll take credit for the damage he is continuing to do when these policies take their toll.

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LogansRun
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Posts: 1444
Re: Daily Digest - May 27

Every time I try to watch a CNBC video it shows up then I hit play and the screen goes black.  Shows that it should be playing with all the pause buttons and all but the piece doesn't play.  Any ideas?  This is only with cnbc for some reason.

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