Daily Digest

Daily Digest - May 3

Monday, May 3, 2010, 9:46 AM
  • Nouriel Roubini Talks Doom Again
  • Case Shiller: Housing Recovery Hoorah! (Or Is It a Decline?)
  • House Prices Surge As Rate Rises Fail To Dent Demand
  • Mauldin: The Future of Public Debt
  • Is China's Recovery A Fraud?
  • Monetary Union Has Delivered A 'German Europe' After All
  • China Hikes RRR, Faber Sees Chinese Crash In 9-12 Months
  • Jim Sinclair: Buffett Bearish On Currencies Holding Value
  • U.S. Sees 64 Bank Collapses In Just 4 Months; 23 Fold In April
  • Greece Braces For "Violent Modernization"
  • Beijing Unveils Tough Measures To Curb Housing Price Rises
  • "Boil-water" Order Issued For Nearly 2 Million In Massachusetts
  • EPA Ramps Up Air Quality Monitoring For Oil Spill
  • 'Green' Isn't The Point; It's Peak Oil
  • It's a Crude World
  • Energy Crisis Pulls Plug In Pakistan

Economy

Nouriel Roubini Talks Doom Again (mhoop)

Roubini had some strong words to say about Greece and its debt problem. The professor was a little more positive about the U.S. in the near term. The long term for America is a different story altogether. Famed investor Jim Sinclair agrees with Roubini, but his view of the American debt problem is much rougher!

Sinclair said earlier this week, “Let’s cut the crap. The US deficit is 10.3% of GDP. If the US was part of the EU there would be a call for them to be thrown out, just like Greece. Regardless, the rating agencies and media plow on with the public following them like the sheeples they are.”

Case Shiller: Housing Recovery Hoorah! (Or Is It a Decline?) (mhoop)

Over the last three years, the index has moved boldly almost every month, rising or falling by several points or well over 1 percent. But after the brief recovery in home prices last summer, the index has barely moved since September.

House Prices Surge As Rate Rises Fail To Dent Demand (mhoop)

APM economist Matthew Bell said the high-end luxury market is experiencing stellar growth. "As it has been for the last three quarters, price growth for houses in the most expensive half of the market was nearly double that of the more affordable sector," he said.

Mauldin: The Future of Public Debt (JRB)

Today we look at a rather remarkable piece of research from the Bank of International Settlements (BIS) on what the fiscal crisis may morph into in the future, how much pain will be needed, and what will happen if various countries stay on their present courses. Some countries could end up paying north of 20% of GDP just on the interest to serve their debt, within just 30 years.

Is China's Recovery A Fraud? (Jim Q.)

While we can’t be entirely sure about the numbers, we are sure that China produced while America consumed, and that while China saved, America borrowed. This is the formula that made the world go round until September 2008, when the wheels came off the worldwide financial system.

In the first quarter of 2009, China’s GDP fell to an annualized 6.1%, the lowest since 1999. In an attempt to reboot the economy, the Chinese government unleashed a colossal $586 billion stimulus package, equal to 14% of GDP.

Monetary Union Has Delivered A 'German Europe' After All (pinecarr)

Let us be clear what has happened. This is a one-off rescue. The money is in the form of bilateral loans, not an EU bond. Mrs Merkel has refused to be bounced into an EU debt union or into acceptance of fiscal federalism.

China Hikes RRR, Faber Sees Chinese Crash In 9-12 Months (pinecarr)

At this point it is glaringly obvious to anyone that without the Chinese liquidity and fiscal dynamo, the recovery is dead in its tracks. China, which is basically a US replicant in its monetary policy thought its currency peg, is critical to reinforce the actions of Bernanke. Which is why the fact that if even the slowest of momos, BlackRock, see the imminent meltdown and have decided to stay away, is troubling.

Jim Sinclair: Buffett Bearish On Currencies Holding Value (Davos)

Warren Buffett said Saturday that he’s bearish about the ability of all currencies to hold their value over time because of massive deficits being run up by governments in the wake of the global financial crisis.

U.S. Sees 64 Bank Collapses In Just 4 Months; 23 Fold In April (pinecarr)

The count of American bank failures are climbing by the day, with a staggering 64 entities closing down in 2010. Out of the total collapses, as many as 23 banks were shut down by the authorities in April, the highest for any month this year.

Greece Braces For "Violent Modernization" (Christian W.)

The time to pay the bill has come, the time of responsibility for all of us tackling this crisis must become the big opportunity to modernize our public life, even if we have to bleed," said financial daily Kerdos.

Beijing Unveils Tough Measures To Curb Housing Price Rises (Christan W.)

Beijing banned all families from buying more than one home Friday, in a tough set of restrictions designed to curb speculation and soaring home prices.

"Boil-water" Order Issued For Nearly 2 Million In Massachusetts (Christian W.)

A major pipe bringing water to the Boston area has sprung a "catastrophic" leak and is dumping eight million gallons of water per hour into the Charles River. Governor Deval Patrick declared a state of emergency and issued a "boil-water" order for Boston and dozens of other communities.

"The water is not suitable for drinking. ... All residents in impacted communities should boil drinking water before consuming it," he said at a news conference this afternoon.

Energy

EPA Ramps Up Air Quality Monitoring For Oil Spill (mhoop)

There are concerns that vapors from the oil and controlled fires might cause health problems for people living in the region. An oil smell could cause headaches or nausea, but EPA spokesman Dave Bary said Saturday there have been no confirmed reports of such problems.

State health agencies are advising people having such symptoms to stay indoors and ventilate their homes with air conditioning.

'Green' Isn't The Point; It's Peak Oil (mhoop, Christian W.)

Leaving aside the question about how "green" war can be, the context is peak oil, an open secret for decades that has yet to be acknowledged at top levels of government. It is, however, on the minds of Pentagon planners. The U.S. military deals in reality, mostly, without consulting the political winds in advance, which is as it should be. It consumes a great deal of petroleum product -- 320,000 barrels of oil per day In 2006. Only three countries on Earth consume more oil per capita than the Department of Defense. War is an expensive and wasteful business.

It's a Crude World (Christian W.)

New York Times reporter, Peter Maass’ new book Crude World: The Violent Twilight of Oil summarily outlines the impending global catastrophe that humanity faces if it cannot break its addiction to sweet Texas Tea. Having been in Baghdad during the 2003 invasion, Maass firmly believes the War was one for oil, but a horrendously botched one if the case.

Energy Crisis Pulls Plug In Pakistan (Christian W.)

The country is in the throes of an energy crisis, with Pakistanis now enduring about 12 hours of power cuts a day, a gruelling ordeal that is melting ice, stalling air-cooling fans and enraging an already exhausted populace just as the blast furnace of summer gets started.

Please send article submissions to: [email protected]

17 Comments

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Re: Daily Digest - May 3

"China’s third increase of bank reserve ratios this year left benchmark interest rates and the yuan’s peg to the dollar unchanged, risking the need for more concerted effort to contain property prices and inflation in coming months.

The requirement will increase 50 basis points effective May 10, the People’s Bank of China said on its Web site yesterday. The current level is 16.5 percent for the biggest banks and 14.5 percent for smaller ones."

"(Reuters) - The euro and European shares fell on Monday on concerns that a 110 billion euro bailout of Greece may still face political hurdles, and that austerity measures Athens agreed to enforce in exchange may prove too tough to sustain."

.....................2A) Europe shares fall; Greece aid fails to calm nerves

"LONDON, May 3 (Reuters) - European shares edged lower on Monday on concerns that a massive bailout package for Greece may face political obstacles and on doubts that Athens can implement tough austerity measures agreed in exchange for aid. Greek bank shares .FTATBNK lost 1.6 percent in choppy trade despite the European Central Bank announcing its acceptance of all Greek government bonds as security for loans, even if their credit rating continues to fall."

....................2B) Euro Declines on Concern Greece Bailout May Fail to Get Support

"May 3 (Bloomberg) -- The euro weakened against the dollar on concern the European Union and International Monetary Fund’s 110 billion-euro ($145 billion) bailout package for Greece will fail to win support from some of the region’s governments. "

"“For Greece, this means terrific austerity and terrific recession,” said Marc Faber, publisher of the Gloom, Boom & Doom report, said in a Bloomberg Television interview in Hong Kong. “The euro will remain weak, and there’ll be more bailouts,”"

 

"Britain could be targeted by speculators in event of hung parliament as traders will be able to bet on collapse in sterling"

"Britain could be battered by speculators on the international money markets within hours of the election result as the futures market in bonds and sterling has agreed to open for the first time at 1am on Friday.

The City is concerned that a hung parliament could mean Britain is unable to take rapid action to cut its budget deficit and force a similar battle with bond dealers that the one that forced Greece to resort to €110bn (£95bn) a bailout package put together by the eurozone countries and the International Monetary Fund.

Usually bond dealers would have to wait until the markets opened on the morning after an election to begin trading but the futures market in gilts – UK government bonds – is opening only three hours after the polls close and seven hours earlier than usual. "

"(Fortune) -- As Greece barreled closer to the edge of a debt default this week, fears that the crisis would infect other countries rattled the world's financial markets. "It's not a question of the danger of contagion," Angel Gurria, the head of the Organization for Economic Cooperation, said. "Contagion has already happened. This is like Ebola.""

""The signals now being sent to Portugal are the same ones that were sent to Greece," says economist Michael Arghyrou of the Cardill Business School.

Portugal, in many ways, mirrors Greece's problems. Like its suffering Euro-partner, Portugal has weak public finances -- its budget deficit rose to over 9% last year, six percentage points higher than the standards stipulated by the European Union. And its debt equals about 80%; Greece's hovers around 115%."

"May 3 (Bloomberg) -- Investor Marc Faber said China’s economy will slow and possibly “crash” within a year as declines in stock and commodity prices signal the nation’s property bubble is set to burst.

The Shanghai Composite Index has failed to regain its 2009 high while industrial commodities and shares of Australian resource exporters are acting “heavy,” Faber said. The opening of the World Expo in Shanghai last week is “not a particularly good omen,” he said, citing a property bust and depression that followed the 1873 World Exhibition in Vienna.

“The market is telling you that something is not quite right,” Faber, the publisher of the Gloom, Boom & Doom report, said in a Bloomberg Television interview in Hong Kong today. “The Chinese economy is going to slow down regardless. It is more likely that we will even have a crash sometime in the next nine to 12 months.”"

"Australia's national debt is threatening to crash through the $1 trillion mark for the first time because of government stimulus spending and private borrowing to fund the boom.

A recent Treasury analysis of the flow of cash into and out of the country shows net foreign debt could reach 85 per cent of gross domestic product (GDP) in the next decade - up from 60 per cent now."

"(Reuters) - The total bill related to the oil spill drifting toward Louisiana from a well operated by BP Plc in the Gulf of Mexico, could exceed $14 billion, analysts said."

"PARIS, May 3 (Reuters) - France will increase its debt issue plans for 2011, 2012 and a part of 2013 to finance a loan package for Greece, Economy Minister Christine Lagarde said in a newspaper interview published on Monday.

"In 2011, 2012 and a part of 2013, we will need to increase it to raise the additional 12.9 billion euros ($17.18 billion)," Lagarde said in an interview with newspaper Le Monde."

"May 2 (Bloomberg) -- Asian governments said sovereign debt risks and "destabilizing" capital flows are among risks that may undermine a global economic recovery, according to a statement from finance ministers of 13 of the region's nations.

"We recognize that downside risks to the overall global recovery remain," finance officials from Japan, South Korea, China and the 10-member Association of Southeast Asian Nations said in Tashkent, Uzbekistan, during the annual meeting of the Asian Development Bank. "We are determined to remain vigilant.""

"OMAHA, Neb., May 1 (Reuters) - Warren Buffett said on Saturday he would expect the U.S. government to bail out an ailing state, and mounted a defense of credit rating agencies as an investment, including stakes by his Berkshire Hathaway Inc (BRKa.N) (BRKb.N).

Speaking at Berkshire's annual meeting, Buffett said that while he might have in the past overestimated the potential for municipal defaults, this week's default by a municipal entity whose debt is guaranteed by Harrisburg, Pennsylvania shows they can happen.

Referencing recent federal bailouts of publicly traded U.S. companies, Buffett said it would be hard for the federal government to turn its back on states in distress.

"I personally think it would be very hard, in the end, for the federal government to turn away a state that is having extreme financial difficulties when in effect it honored General Motors [GM.UL] and various other entities," he said."

"Investors are kidding themselves if they think that states and cities can’t fail.

The financial crisis has exploded plenty of long-held beliefs, including the idea that mortgage debt is a risk-free investment. But nothing has shaken the articles of faith that underpin another massive debt market: municipal bonds. Investors in municipal bonds don’t have to worry about a thing, the thinking goes, because the states and cities that issue them will do anything to avoid reneging on their obligations—and even if they fail, surely Washington will step in and save investors from big losses.

These are dangerous assumptions."

"You might think that municipal bonds would have lost their low-risk reputation. In the past two tumultuous years, tax revenues have plummeted by double-digit percentages, and state and local governments have struggled to close historic deficits. Nationwide, they face cash operating gaps of $200 billion, or 15 percent of their budgets, through 2011. Big spenders have shown no sign of cutting costs in line with a new reality. Ordinarily, if a borrower is in such straits, lenders start thinking twice about lending it yet more money: Who’s to say that the borrower won’t declare bankruptcy and default on its obligations?"

MunicipalDebt

"HARRISBURG -- State legislators are facing a financial double whammy.

They must come up with nearly $500 million in additional funds to fix crumbling roads and bridges and keep buses and trolleys running, while also plugging a general fund deficit that's expected to exceed $1 billion.

Starting Tuesday, lawmakers will officially consider the huge transportation problem, as Gov. Ed Rendell opens a special session that will look at new taxes and fees, or eliminating unnecessary spending, to come up with funds for roads, bridges and transit.

The Legislature has to figure out how to fill a $472 million hole that was created a month ago when the federal government refused to allow the state to put tolls on Interstate 80. Mr. Rendell will get things started with an address at 1 p.m. to a joint session of the House and Senate."

"WASHINGTON (AP) -- Consumer spending rose in March by the largest amount in five months but the gains were financed out of savings, which fell to the lowest level in 18 months. A slight rise in incomes added to concerns that the recovery could weaken unless income growth increases more rapidly.

The Commerce Department said consumer spending rose 0.6 percent in March, matching economists' expectations. Personal incomes edged up just 0.3 percent, raising new worries about lackluster income growth."

"TASHKENT, May 2 (Reuters) - Japanese Finance Minister Naoto Kan said on Sunday the country would eventually need to consider a tax hike as the government's ability to issue more bonds was near the limit due to its huge public debt."

"Only 18 percent of Americans are willing to pay higher taxes to lower the federal budget deficit, according to a new Rasmussen Reports national telephone survey.

Sixty-nine percent (69 percent) are not willing to have their taxes raised to deal with deficits that are projected to rise to historic levels over the next decade. Thirteen percent (13 percent) more are not sure.

But most voters think President Barack Obama’s new bipartisan deficit reduction commission is more likely to recommend tax increases than spending cuts to meet the growing deficit, and 78 percent expect Congress to raise taxes if the commission recommends it. "

7W2BENEFITS_A1

"Pennsylvania taxpayers will be hit with higher taxes to help fund two state pension systems.

The average residential homeowner likely will pay an additional $385 in property taxes in 2012, said Richard C. Dreyfuss, a pension consultant and senior fellow of Commonwealth Foundation for Public Policy Alternatives.

Dreyfuss spoke Friday at an Issues Forum sponsored by the Blair County Chamber of Commerce and Pennsylvania Economy League at The Casino at Lakemont Park.

Decisions made several years ago regarding funding of the Public School Employees Retirement System and the State Employees Retirement System are coming back to haunt legislators - and potentially taxpayers.

In 2001, the General Assembly and Gov. Tom Ridge agreed to increase pensions for most state lawmakers by 50 percent and in doing so, bumped up pensions by 25 percent for about 300,000 active state workers and teachers.

In the face of substantially higher mandatory pension payments for state government and school districts, Gov. Ed Rendell and lawmakers struck a deal in 2003 to push back paying most of it for 10 years.

The pension systems also were hit hard by the poor performance of the stock market from which they receive a large portion of their investment revenue.

"We have overpromised the benefits and underfunded them," Dreyfuss said. "After the market failed after 9/11, the assets were no longer there, so the legislature deferred the costs to 2012."

Dreyfuss said something has to be done."

"May 3 (Bloomberg) -- Hakimullah Mehsud, the Pakistani Taliban leader reported killed in a U.S. missile strike four months ago, appeared to have emerged alive in a video to warn that his group will attack major American cities.

Taliban fighters “have penetrated the terrorist America,” and “the time is very near when our Fidaeen will attack the American states in their major cities,” said Mehsud in a nearly nine-minute video found on the Web by IntelCenter, an intelligence firm based in Alexandria, Virginia. English subtitles on the video cite Mehsud giving the date as April 4, while Mehsud, speaking in his native Pashto, says it is April 19. "

"The homebuyer tax credit faded away Friday night with a whimper in most markets and a bang in just a few, according to reports from across the county.

Many real estate agents hustled their clients through the process of making an offer, but few were last minute deals brought on by the end of the credit. Most deals had been underway for weeks and buyers struggled to get them done before the deadline."

"David Kotok of Cumberland Advisors is out with some very gloomy comments about the economic ramifications of the Deepwater Horizon oil spill, and what it will cost. First he notes the ugliest case scenario:

This spew stoppage takes longer to reach a full closure; the subsequent cleanup may take a decade. The Gulf becomes a damaged sea for a generation. The oil slick leaks beyond the western Florida coast, enters the Gulfstream and reaches the eastern coast of the United States and beyond. Use your imagination for the rest of the damage. Monetary cost is now measured in the many hundreds of billions of dollars."

......................20A) BP Spill Threatens Gulf of Mexico Oil, Gas Operations

"May 3 (Bloomberg) -- The growing oil slick fed by an underwater leak in a BP Plc well in the Gulf of Mexico may threaten production, shipping and refining of oil and natural gas in Mississippi, Alabama, and Louisiana.

Those three states account for 19 percent of U.S. refining capacity as of 2009, according to data from the U.S. Energy Department’s Energy Information Administration.

“Traders are nervous about how fast the slick could grow,” and whether it could have a significant effect on oil and natural-gas production, said Andy Lipow, president of Lipow Oil Associates LLC in Houston.

The oil spill followed an April 20 explosion on a drilling rig leased by BP Plc that killed 11 workers. The rig, owned by Transocean Ltd., sank two days later.

President Barack Obama called the leak a “massive and potentially unprecedented” disaster that could affect the economy of the Gulf states and the jobs of those who depend on the Gulf for their livelihood.

The spill could drift west toward New Orleans, hindering ships entering and leaving the Mississippi River or deliveries of cargoes to the Louisiana Offshore Oil Port, Lipow said in a telephone interview yesterday. "

  • Other news and headlines:

Bulgaria's budget deficit rises to $1.1 bln in Q1

North Korea's Food Aid Will Run Out Next Month, UN Agency Says

Oil above $86 as traders eye Gulf crude spill

Australia's Commodity Boom Threatened By New Tax Hike

U.S. to probe thousands more offshore tax evaders

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The Site Was Down This Morning

A quick update for those of you who noticed that the site was offline for nearly an hour this morning.

Fortunately, this had nothing to with our site specifically and it wasn't a DOS attack or anything like that.  Our server, along with hundreds of others, was accidentally knocked off-line by an equipment failure at our main hosting service.

So no big worries, just what can happen from time to time but alos a good reminder that if the internet ever goes down for some reason, a big portion of my world will simply evaporate and cease to be.

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Re: Daily Digest - May 3

King World News is reporting that a CONSPIRACY to TAKE DOWN PeakProsperity.com has been thwarted.

Chris and his family are safe.

Information known to KWN proves that this attack could ONLY be accomplished by a GOVERNMENT AGENCY, either NSA or CIA!

More on this week's interview...

Oh, wait, never mind, Chris already blew it. Sigh...

(Couldn't resist)

ET

 

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Re: Daily Digest - May 3

Here is a link to an Oil Drum discussion about well pressures and blowout preventers.  Very informative. 

http://www.theoildrum.com/node/6421

 

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Re: Daily Digest - May 3

Hi Chris. Hope it wasn't anything that I said.  Surprised

Actually conspiracy theories are generally overly simple, silly and off base.  Reality is much more bizarre and harder to understand.  Thanks for the rundown on blowout prevention.

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Re: Daily Digest - May 3

BP Oil Spill Continues; Obama Sends in S.W.A.T. Team

The Gulf of Mexico oil spill is getting worst and there aren't any clues that indicate how the explosion mysteriously occurred on Earth Day, April 20, 2010.  British Petroleum (BP) is leading the clean-up efforts with help from the federal government.  When compared to the Bush administration's handling of Hurricane Katrina, top Obama officials get very defensive, even though it took the undocumented President Obama eight days to address the situation.

As BP continues its cleanup of the oil spill, the Obama administration continues to point fingers at the oil giant, which is responsible for the spill.  Ironically, BP was one of three finalists in the Safety Award for Excellence from the Department of Interior (DOI), which honors companies for "outstanding safety and pollution prevention performance by the offshore oil and gas industry." The award was originally scheduled for today, but was postponed by the DOI so all available resources could be used to help the oil spill recovery effort.

Another extremely interesting piece of information was that Obama announced that the DOI had sent a S.W.A.T. team to the scene.  He casually mentioned this during his speech last Thursday and didn't offer any explanation as to why a S.W.A.T. team was sent.  This raises many questions, mainly why is a S.W.A.T. team needed?  And why the DOI's S.W.A.T. team and not the military?

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Re: Daily Digest - May 3

From my blog regarding local (not far from Boston) matters:

Resilience: Woburn Has Some, Let's Invest in More

Saturday afternoon we were home, either doing projects outdoors or indoors conversing with a journalist about our considerations of and preparations for the future we imagine.  We didn't tune in to any kind of media during the evening.  We knew nothing about the Boston area's water supply troubles until our son, a resident of Arlington, called.  He asked if we knew of the ruptured pipe and the authorities' advice to boil any water that would pass one's lips.

Immediately, we began to imagine the inconveniences. When we learned that Woburn is not one of the affected communities, we were relieved and happy, of course.  For us, life will go on being simple.  Too bad those other communities had all their eggs in one basket!  How wonderful that in this city we draw water from more than one source and can choose which one, or ones, we will tap.  Because life requires water, making an extra effort to ensure its continuous availability is a rational choice.  We're grateful today that our predecessors chose to invest as they did, that they made arrangements for access to water both under foot and in a big pipe not far away.

The next thoughts, however, were questions.  How thorough were our predecessors?  Did they think of everything?  How thorough have we been?  Have we anticipated any difficulties, any departures from normal?  Do we also have multiple sources, including local ones, for necessities such as food and fuels?  Can we rely on sources we have now to (nearly) maintain normal life if a big system's part breaks or it malfunctions?

If not, what are we waiting for?  The way to have redundant and/or alternate systems in place is to put them in place.  We can begin with modest visions and become more ambitious as we proceed and succeed.  To the extent that we do it together, with our own energy and time, we will grow with our ambitions.

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Re: Daily Digest - May 3

Regarding the SWAT team - here is an interview with a worker who was on the rig at the time of the explosion. He mentions that Transocean itself has it's own SWAT team.

http://marklevinshow.com/Article.asp?id=1790422&spid=32364

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Re: Daily Digest - May 3

National debt passes $12.9 trillion and You owe over $42,000

NationalDebtClock

 

Real Time National Debt Clock at over $12.91 trillion

12,948,738,915,856.86 at Treasury Direct

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Re: Daily Digest - May 3
saxplayer00o1 wrote:

National debt passes $12.9 trillion and You owe over $42,000

NationalDebtClock

 

Real Time National Debt Clock at over $12.91 trillion

12,948,738,915,856.86 at Treasury Direct

18 trillion if you count the GSE crud on the Fed's balance sheet.

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Re: Daily Digest - May 3

Hum more problems....when it rains it pours. Really have to feel for these people. Pretty bad when you are on the highway & you get passed by a floating house.

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Re: Daily Digest - May 3

http://blog.al.com/live/2010/05/bp_told_to_stop_circulating_se.html

BP told to stop circulating settlement agreements with coastal Alabamians

By George Talbot

May 02, 2010, 8:49PM

Attorney General Troy King has asked BP to cease circulating settlement agreements among south Alabamians.Alabama Attorney General Troy King said tonight that he has told representatives of BP Plc. that they should stop circulating settlement agreements among coastal Alabamians.

The agreements, King said, essentially require that people give up the right to sue in exchange for payment of up to $5,000.

King said BP's efforts were particularly strong in Bayou La Batre.

The attorney general said he is prohibited from giving legal advice to private citizens, but added that "people need to proceed with caution and understand the ramifications before signing something like that.

"They should seek appropriate counsel to make sure their rights are protected," King said.

By the end of Sunday, BP aimed to sign up 500 fishing boats in Alabama, Mississippi and Florida to deploy boom.

BP had distributed a contract to fishermen it was hiring that waived their right to sue BP and required confidentiality and other items, sparking protests in Louisiana and elsewhere.

Darren Beaudo, a spokesman for BP, said the waiver requirement had been stripped out, and that ones already signed would not be enforced.

"BP will not enforce any waivers that have been signed in connection with this activity," he wrote in an e-mail.

But King said late Sunday that he was still concerned that people would lose their right to sue by accepting settlements from BP of up to $5,000, as envisioned by the claim process BP has set up. 

The attorney general said he is prohibited from giving legal advice to private citizens, but added that "people need to proceed with caution and understand the ramifications before signing something like that."

"To the best of my knowledge BP did not ask residents of Alabama to waive their legal rights in the way that has been described," Beaudo said.

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Re: Daily Digest - May 3

It never ceases to amaze me how comfortable most people are using words, phrases and acronyms when they obviously haven't the faintest clue what they actually mean. Like the way so may people are comfortable using the phrase "I'd just assume do X" (sic) when no assumption is involved and the common phrase their ignorance kept them from was "I'd just as soon do X".

joemanc wrote:

Regarding the SWAT team - here is an interview with a worker who was on the rig at the time of the explosion. He mentions that Transocean itself has it's own SWAT team.

Ok, I'll bite... Why would the DOI, the EPA, or "Transocean iteself" have any need of Special Weapons And Tactics? Are they planning to fly in and shoot guns at the oil or the rigs in order to fix the problem? What Weapons are we talkiing about here???

Erik

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Re: Daily Digest - May 3
Erik T. wrote:

It never ceases to amaze me how comfortable most people are using words, phrases and acronyms when they obviously haven't the faintest clue what they actually mean. Like the way so may people are comfortable using the phrase "I'd just assume do X" (sic) when no assumption is involved and the common phrase their ignorance kept them from was "I'd just as soon do X".

joemanc wrote:

Regarding the SWAT team - here is an interview with a worker who was on the rig at the time of the explosion. He mentions that Transocean itself has it's own SWAT team.

Ok, I'll bite... Why would the DOI, the EPA, or "Transocean iteself" have any need of Special Weapons And Tactics? Are they planning to fly in and shoot guns at the oil or the rigs in order to fix the problem? What Weapons are we talkiing about here???

Erik

Sopping Wet And Truant

Poet

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Re: Daily Digest - May 3

Erik,

I guess they could be using the term for a team that fights fires or leaks but in all reality, there's a good chance that they had a private police force on board that would take care of any potential threat from coming on board.  To me it makes sense that a piece of equipment that first, is worth almost a billion dollars, second, could cause irreparable harm to the environment if used improperly.  And third, is the only rig capable of such ventures.  Shoot, I know for a fact some Saudi princes have private military forces on their yachts to keep this type of thing from happening.  I know for a fact that Paul Allen keeps a small force on his monstrous yacht as well, so.....why wouldn't an oil rig/ship of this caliber use the same.

I don't know this for sure but again, it makes sense to me.

Tycer's picture
Tycer
Status: Platinum Member (Offline)
Joined: Apr 26 2009
Posts: 601
Re: Daily Digest - May 3

Maybe the s.w.a.t. acronym has another meaning in the mining industry.

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