Daily Digest

Daily Digest - November 16

Monday, November 16, 2009, 10:59 AM
  • China has now become the biggest risk to the world economy
  • How Does Your State Compare to California?
  • Protesters Plan Huge Anti-Goldman Rally In Washington, DC
  • Mauldin: If This Is Recovery...
  • Greenspan Buying Gold Bars
  • Gold Hits Record High Monday, Asian Shares Rise
  • Rising Clout Gives China New Muscle At G2 Talks With US
  • Economists See FED Raising Interest Rates Sept 2010
  • Market Volatility Expected To Continue
  • Wall Street: All Eyes On The Consumer
  • Healthcare Debate Lawmakers' Statements Written By Biotech Company
  • More US Job Hunters Looking For Work In Other Nations
  • Protecting Grandpa From Investing Peril
  • To The Bankers: Answer This Question
  • Amid Public Uproar CALPERS To Weigh Tougher Disclosure Rules
  • Will China's Consumers Save The World Economy?
  • More Class Action Lawsuits Against Wall Street Firms
  • Drug Makers Rush To Increase Prices Before Health Care Overhaul
  • Japan Extra Stimulus Likely
  • As Dollar Tumbles, America Is Up For Grabs
  • Five Things The US Can Learn From China
  • The Economic Cost Of Ugly Useless Christmas Gifts
  • Financial Sense NewsHour
  • Environmental Economics: How Much Is A Tree Worth?
  • Expanding Islands Of Trash Afloat In The Ocean
  • Black Carbon: An Overlooked Climate Factor

Economy

China has now become the biggest risk to the world economy (nncita)

Far from taking over as the engine of growth from an exhausted West, China is making matters worse. Its "beggar-thy-neighbour" policies continue to play havoc with global trade and risk tipping the world into a second leg of the Great Recession.

How Does Your State Compare to California? (PDF) (pinecarr)

Using indicators chosen to gauge California’s fiscal conditions, Pew Center on the States collected data for all 50 states. Pew’s researchers then “scored” the states based on the results, with California ranking highest at 30.

Protesters Plan Huge Anti-Goldman Rally In Washington, DC (pinecarr)

On Monday, SEIU President Andy Stern and hundreds of taxpayers will converge on the Washington headquarters of Goldman Sachs to demand an end to multi-billion dollar bonuses and the Too Big To Fail Doctrine and call for immediate Congressional action on real financial reform. This is the latest in a national mobilization launched last month as 5,000 taxpayers from 20 states converged on the American Bankers Association convention in Chicago to demand Wall Street and big banks stop fighting reforms that will protect our families from the next crisis.

Mauldin: If This Is Recovery... (JRB)

No one goes into Wal-Mart and asks to pay extra sales tax. Thus sales taxes are reasonable barometers for retail sales. This week we look at how taxes are doing in a period of economic recovery. Then we turn our eyes to a very interesting (and sobering) analysis of possible future unemployment rates. This is an anecdote to the happy-face analysis of employment numbers you get from establishment economists. There will be a lot of charts and tables, so this letter may print a little longer, but I think you will find it very interesting.

Greenspan Buying Gold Bars (Comedy, Video) (D.S.O.)

Don't know if you posted this yet, the 2 minute point of this is hysterical. Greenspan buying gold bars.

Gold Hits Record High Monday, Asian Shares Rise (M.W.)

Gold hit a record high on Monday as investors hedged against a weak dollar while Asian shares edged higher after upbeat reports from U.S. retailers underpinned confidence the global economy is recovering. Gold XAU= punched a record above $1,126 an ounce, and sending platinum to its highest level since September 2008, as the dollar .DXY dipped 0.3 percent against a basket of currencies, and on bullish forecast from U.S. investment fund BlackRock.

Rising Clout Gives China New Muscle At G2 Talks With US (M.W.)

Once upon a time, the visit of a U.S. president would bring concessions from a Beijing leadership grateful for the attention and affirmation. Not any more. This time, Beijing is ready to trade Washington's list of demands for an equally long list of its own.

Economists See FED Raising Interest Rates Sept 2010 (M.W.)

Most economists said the Fed won't raise rates until the third quarter of 2010 at the earliest. Futures markets are putting 90% odds of a rate increase in August next year.

Market Volatility Expected To Continue (M.W.)

There's a tug of war in the financial markets between investors who believe the economy is on its way to a strong recovery and those who believe a rebound will be slow and bumpy.

Wall Street: All Eyes On The Consumer (M.W.)

Investors will brace for a spate of economic reports this week with their fingers crossed that there is more good news than bad since that will set the tone for the remaining seven weeks of the year. Kicking off the week will be the government's monthly retail sales report, which investors hope will shed light on how much consumers will be willing to spend.

Healthcare Debate Lawmakers' Statements Written By Biotech Company (M.W.)

Statements by more than a dozen lawmakers were ghostwritten by Washington lobbyists working for Genentech, one of the world’s largest biotechnology companies. E-mail messages obtained by The NY Times show that the lobbyists drafted one statement for Democrats and another for Republicans.The lobbyists, employed by Genentech and by two Washington law firms, were remarkably successful in getting the statements printed in the Congressional Record under the names of different members of Congress.

More US Job Hunters Looking For Work In Other Nations (M.W.)

With the nation's unemployment rate at a 26-year-high, more Americans are hunting for, and landing, work overseas.The hottest international job markets include India, China, Brazil, Dubai, and Singapore. International companies are largely seeking candidates in engineering, computer technology, manufacturing, investment banking and consulting.

Protecting Grandpa From Investing Peril (M.W.)

Congress wants states to beef up oversight of firms that sell annuities to seniors. The plan: Cash grants to states that go along. A little-noticed proposal would set aside $8 million for states that bulk up oversight. It was buried last week in a 1,136-page Senate bill to reshape the financial system. A House bill contains a similar proposal.

To The Bankers: Answer This Question (M.W.)

The Carnies and other Barkers have their desire to make you think things are just peachy. Then again, so did Japan after their debt-fueled property crash. The Nikkei surged on the back of the carry trade, just as has the S&P 500. But a huge part - perhaps even the ultimate cause of the meltdown that took our stock indices down some 60% from their highs from October 2007 to the spring of 2009 - was the unwinding of that very same Yen carry trade.The dollar-based carry trade, when (not if) it unwinds, will do even more damage than the Yen-based carry did. And unwind it will.

Amid Public Uproar CALPERS To Weigh Tougher Disclosure Rules (M.W.)

Amid a growing public uproar over the way it invests its money, the California Public Employees' Retirement System is expected to toughen its 6-month-old policy requiring outside investment managers to more fully disclose their relationships with the intermediaries who pitch their products. The tougher proposals are to be discussed by the CalPERS board today as the country's largest government pension fund overhauls the way it manages its massive investments, which total $200 billion.

Will China's Consumers Save The World Economy? (M.W.)

As debt-laden consumers in the U.S. retrench, increasingly wealthy Chinese consumers could become one of the most important sources of growth for the global economy. Shoppers in China are opening their newly stuffed wallets wider than ever. Passenger car sales surged 76% in October from a year earlier, while overall retail sales jumped 16.2%. Such spending has contributed to China's robust recovery from the global economic crisis.

More Class Action Lawsuits Against Wall Street Firms (M.W.)

The Sacramento Municipal Utility District sued Goldman Sachs, Morgan Stanley, and 45 other financial firms Thursday in federal court for allegedly rigging bids in bond-derivatives markets and defrauding the utility. SMUD joined at least six city and county governments in California that already have filed similar lawsuits arising from a federal investigation made public in 2006. Many other public entities around the country have joined in lawsuits seeking class-action status.

Drug Makers Rush To Increase Prices Before Health Care Overhaul (M.W.)

Even as drug makers promise to support Washington’s health care overhaul by shaving $8 billion a year off the nation’s drug costs after the legislation takes effect, the industry has been raising its prices at the fastest rate in years.In the last year, the industry has raised the wholesale prices of brand-name drugs by 9%, according to industry analysts. That will add more than $10 billion to the nation’s drug bill, which is on track to exceed $300 billion this year. It is the highest annual rate of inflation for drug prices since 1992.

Japan Extra Stimulus Likely (M.W.)

Finance Minister Hirohisa Fujii said the extra budget won't exceed 2.7 trillion yen and the cabinet could announce the details later on Monday, Kyodo news reported.

As Dollar Tumbles, America Is Up For Grabs (M.W.)

The buck is sinking fast: 6% against the euro so far this year, 14% against the Canadian dollar, 26% against the Brazilian real. Americans are trading their wealth in return for someone else's goods. In the first nine months of 2009, the US spent $275 billion more on imported products than they received from exports. Repeat that year after year and eventually somebody winds up with a whole pile of claims against you.

Five Things The US Can Learn From China (M.W.)

Could the world's lone but weary superpower actually learn something from China? It's a politically incorrect question, of course. Still, this is a moment of humility for the U.S., and China is doing some important things right. Here are five lessons from China's success story.

The Economic Cost Of Ugly Useless Christmas Gifts (M.W.)

In a new book called Scroogenomics , a U.S. economist has helpfully done the math on the holiday he declares, as only an economist would, an “organized institution for value destruction.”

Energy

Financial Sense NewsHour (mp3) (joemanc)

3rd Hour, 1st part is a Discussion of Peak Oil and the recent article in the Guardian about the Peak Oil coverup.

Environment

Environmental Economics: How Much Is A Tree Worth? (M.W.)

Think a tree is just a tree? Think again. A new United Nations study puts dollar signs on the services nature provides. A new report from the UN Environment Programme identifies the economic contribution of ecosystems and biodiversity as significant—and lucrative. Mangroves in Vietnam, it turns out, save annual expenditures on dike maintenance of more than $7 million. And in another example: it would cost $200 million to replicate the services provided by natural springs in New Zealand.

Expanding Islands Of Trash Afloat In The Ocean (M.W.)

1,000 miles northeast of Hawaii, in a remote patch of the Pacific Ocean, the detritus of human life is collecting in a swirling current so large that it defies measurement. Light bulbs, bottle caps, toothbrushes, Popsicle sticks and tiny pieces of plastic inhabit the Pacific garbage patch, an area of widely dispersed trash that doubles in size every decade and is now believed to be roughly twice the size of Texas. Scientists say the garbage patch is just one of five that may be caught in giant gyres scattered around the world’s oceans.

Black Carbon: An Overlooked Climate Factor (M.W.)

You can see it as you're flying into New Delhi. As the plane descends to the Indian capital , it is immersed in air so polluted as to be opaque, a brownish sludge that scatters any sunlight. That soupy brown air is the result of black carbon expelled into the atmosphere from the burning of biomass for cookstoves and of black coal for electricity, and the incomplete combustion in the old diesel engines that propel most of the cars and trucks in the city. According to some estimates, black carbon may be responsible for as much as 18% of the planet's warming.

22 Comments

saxplayer00o1's picture
saxplayer00o1
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Re: Daily Digest - November 16

"Even if fewer troops are sent, or their mission is modified, the rough formula used by the White House, of about $1 million per soldier a year, appears almost constant."

"The United Nations launched an online appeal for individual donations to fight hunger as donor nations tackle an economic crisis and, for the first time in history, more than 1 billion face starvation worldwide."

"UC President Mark Yudof said in a written statement he would ask the university's Board of Regents this week to approve the request, which follows last week's announcement that the California State University system would seek nearly $900 million more in the 2010-11 state budget.

Both systems have been hit hard by budget cuts the past two years. Without the additional funding, the UC budget deficit could grow to at least $1.2 billion next year, the university said."

"SYDNEY, Nov 16 (Reuters) - Central banks will be net buyers of gold this year as they diversify away from the U.S. dollar, global commodities investment fund BlackRock said on Monday in comments that helped drive bullion to fresh record highs.

BlackRock is one of the world's largest fund managers, boasting a total $1.4 trillion under management across all asset classes. It is manager and adviser to the U.S. Federal Reserve and its views can influence the direction of global markets."

"Referring to the proposal for a dedicated India fund, Ma Delun, deputy governor of the Chinese central bank said, “As central bank of China, we will support anything that is facilitating economic and financial cooperation between India and China.""..

"Contrary to reports, the Peoples’ Bank of China might not be keen to buy gold from International Monetary Fund (IMF) unlike the Reserve Bank of India (RBI) that bought IMF gold worth $7.4 billion last month.

However, Ma indicated that the Chinese central bank would aggressively diversify its asset portfolio from that of the US greenback-dominated treasury investments."

"TOKYO (MarketWatch) -- The dollar slipped Monday, a day after China's chief banking regulator criticized loose U.S. monetary policy as leading to increased speculation.

"The continuous depreciation in the dollar, and the U.S. government's indication that, in order to resume growth and maintain public confidence, it basically won't raise interest rates for the coming 12 to 18 months, has led to massive dollar arbitrage speculation," Liu Mingkang, chairman of the China Banking Regulatory Commission, said Sunday in Beijing at the International Finance Forum, according to news reports."

"“Investors of all levels, from retail investors to central banks, are really diversifying their portfolios,” said Toby Hassall, an analyst with CWA Global Markets Pty Ltd. in Sydney."

"Further weakness in the dollar could fuel further buying of the precious metals, as funds turn to hard assets as an alternative to the US currency."

"The assurance comes amid growing doubts across the world over the wisdom of White House spending plans. The US Congressional Budget Office expects the deficit to remain around $1.8 trillion (£600bn) as far ahead as 2019 under current plans, pushing the US national debt into the danger zone.

China, Japan, and other Asian states with large holdings of US Treasury debt fear that Washington may be embarking on a course that will lead to "stealth default" through dollar debasement and creeping inflation."

"Meanwhile, on WBEN-AM Buffalo, Paterson said he's already looking for options he can undertake if the Legislature fails to act this week. He didn't specify.

He also warned that next year's projected budget deficit could grow to $9 billion, up from the currently anticipated $7 billion."

"The U.S Treasury swapped about $43 billion of the loans for a 60.8 percent equity stake in GM; the Canadian federal and provincial governments hold an 11.7 percent equity stake in GM in exchange for most of their $10.5 billion in loans.

As a result, the Government Accountability Office, the Congressional Oversight Panel overseeing the $700 billion Wall Street and auto bailout fund, and former White House auto czar Steve Rattner all agree that taxpayers have lost billions in their investment -- because the stock won't be worth enough to cover the government's investment.

Rattner said taxpayers have probably lost about $25 billion."....

"Pensions still an issue

GM forecasts it will need to make $12 billion in pension payments over two years, starting in 2013, to shore up its underfunded plans.

GM's pensions were underfunded by $12.7 billion as of Dec. 31.

"Some of our options would include looking at whether it makes sense for us to put some money into the pension plan this year. That's something that we're going to analyze over the next several months along with the new GM board," Young said."

"In the letter, Hispanic religious, political and labor leaders detail how workers from Hollister are seeking justice after a key Darden food supplier, San Benito Foods, decided to unilaterally eliminate the pensions and health insurance benefits of the 85 percent of the work force that is seasonal.

The decision by San Benito Foods will leave 400 workers, largely Latina women, without any form of health or retirement benefits. According to a press statement, the pensions were the workers' only retirement savings."

"In a trend that began a few months ago, more Bay Area homeowners in October received a foreclosure notice compared with a year ago while foreclosed homes taken back by banks declined in response to the rollout of loan modification programs.

Last month, the three stages of foreclosure activity were at the lowest monthly point since the start of the year, with 5,604 homes in some stage of foreclosure, said a RealtyTrac.com report. That's a 33.9 percent decrease from September, but 16.7 percent higher from October 2008.

But that overall number does not tell the whole story, given that foreclosure notices are rising while the number of foreclosed homes that become bank-owned properties are falling due in part to the administration of President Barack Obama's loan modification program launched in March.

However, the expected failure of many loan modifications will set the stage for a flood of bank-owned foreclosures to hit the real estate market starting in six months as borrowers fail to keep up with modified payments, said Mark Hanson, head of Menlo Park-based Field Check Group, an independent real estate research firm."

"E.J. McMahon, director at the Manhattan Institute says New York deficits amount to financial emergency.

New York state's huge and growing budget gap requires government to take drastic actions to correct it, said E.J. McMahon, director of the Empire Center for New York State Policy at the Manhattan Institute.

McMahon spoke to the Council of Industry, a regional trade group, Friday at the Powelton Club.

He charted flat revenues against expected spending if nothing is changed and showed a $20 billion gap looming by 2012-13."

 

......Once again the dollar is falling and is very close to its recent lows, while gold hits new highs. At least all that money printing by the Federal Reserve has the markets moving higher though.

DavidC's picture
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Re: Daily Digest - November 16

A VERY interesting analysis of today's retail figures (incorporating last month's downward revision) from Karl Denninger today.

http://market-ticker.org/archives/1628-Goebbles-Retail-Sales.html

DavidC

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Re: Daily Digest - November 16

Guess the audience makes all the difference:

Fed's Hoenig says significant weakness in economy

http://www.newsdaily.com/stories/tre5af17u-us-usa-fed-hoenig/

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Re: Daily Digest - November 16

Message from the Gyre - the damage done by our garbage patch (photos)

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idoctor
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Re: Daily Digest - November 16

Stocks Overvalued, Recession Will Return: Meredith Whitney

http://www.cnbc.com/id/15840232/?video=1332936523&play=1

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mono
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Bernanke in mainstream media in europe, yyssw

Hello,

I´m a daily followers of Chris´s site. I try to absorb as much information from here as possible. I do accept that some details  and some of the colloquial stuff pass me by `cause I´m from a different hemisphere (Europe, Germany).

An observation which i want to share with you is today´s media articels over here about Ben Bernanke.  

I can clearly detect a change of pattern here !!!

While any Fed Chairman in the past has always been cited with the utmost respect, todays articles about Bernanke`s assurances about a strong US Currency and his never ending Mantra about things getting better was met with something one could only describe as " ridicule". I do not recall having read an article about a Fed chairman´s statements that had such an underlying tone of dissent.

Almost like a shift from someone who is globally important to someone who is more of a local hero ! YYSSW kind of thing. 

----------------------

 

I love this site because it gives me an insight into something I never thought of as important. It also helps me to rationalize things much better than I could without the condensed information this page offers to me.

My world is music but i do understand now that , whatever we do, we are all affected by the criminal tendencies of some people in the monetary system who like to take the public hostage for their own unjustified benefit. -Enough is less than these people need-

Well, who ever you all are ( Davos, Saxplayer, Damnthematrix, etc  - above all Chris M off course), i can assure you, you´re not the only thing i read during the day, but i do have my early morning coffee with you guys and i would´nt wanna miss a second of it! Thank you so much!!

 

mono

 

 

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idoctor
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Re: Daily Digest - November 16

Mono thanks for your post.....good information for us to know!

http://www.cnbc.com/id/15840232?video=1333076640&play=1

saxplayer00o1's picture
saxplayer00o1
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Re: Daily Digest - November 16

"Agency continues to lose money despite $6 billion in cost-cutting measures, and proposes that it drop Saturday delivery.

NEW YORK (CNNMoney.com) -- The U.S. Postal Service reported a $3.8 billion loss in the 2009 fiscal year, and plans to propose to Congress in 2010 that it drop Saturday delivery.

That move alone would shave $3.5 billion in costs."

 

"Nov. 16 (Bloomberg) -- New Jersey Governor-elect Chris Christie and his economic transition team said the budget gap for the fiscal year beginning July 1 may exceed the $8 billion state budget officials previously forecast."

"NASHVILLE – In a “worst-case scenario” next year, Tennessee state government could face a $1.5 billion budget gap between non-discretionary spending needs and the tax revenue available to pay for it, Gov. Phil Bredesen said today.

That figure includes about $515 million in budget cuts that are already built into this year’s and next year’s budget but were delayed from going into affect by the use of federal economic recovery and stimulus money in the current year’s budget."

 

"WASHINGTON — More than 15 million taxpayers may owe the government $250 or more because of how the IRS last spring set up President Barack Obama's tax break that was designed to help consumers spend the U.S. economy out of recession."

"Are you counting on a union pension? If so, be very afraid. So says a recent report, “Comparing Union Sponsored and Private Pension Plans: How Safe are Workers’ Retirements?” by Diana Furchtgott-Roth, Senior Fellow and Director of the Hudson Institute’s Center for Employment Policy, and Andrew Brown, an independent economist. Furchtgott-Roth and Brown report that many union pension plans do not have enough money to pay for the retirements they promised to provide their workers, and the problem is only getting worse."

"People want to own gold now because gold is the ultimate currency," Gijsbert Groenewegen, a partner at Gold Arrow Capital Management in New York, was quoted on Bloomberg. "It’s clear that with such low interest rates, the dollar is being allowed to weaken, and there’s no incentive to hold it."

"China has surpassed the U.S. as the world’s largest car market, and consumers there are expected to buy as many as 50 million new cars and trucks a year by 2020, the chief executive of a Chinese industrial real-estate developer told a group of automotive suppliers today."

"Fitch Ratings said U.S. commercial mortgage-backed securities delinquencies continued to climb in October, with the hotel sector having the highest delinquency rate, although office delinquencies showed the biggest rise.

The delinquency rate rose to 3.86% last month from 3.58% in September and 3.04% in August. The hotel sector led with a delinquency rate of 6.81%, followed by the multifamily sector at 6%. Retail was the third largest, at 3.55%."

 

 ..........Wow. So many green shoots today!!  Time to post the green shoots song for everyone.

Johnny Oxygen's picture
Johnny Oxygen
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Is the dollar as good-as-Tungsten?

Very good read from FOFOA here about the tungsten issue.

 

http://fofoa.blogspot.com/2009/11/is-dollar-good-as-tungsten.html

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Unofficial Problem Bank List increases to 507

Unofficial Problem Bank List increases to 507

by CalculatedRisk on 11/13/2009 09:30:00 PM

Note: This was before the three FDIC bank seizures today.

This is an unofficial list of Problem Banks.

Changes and comments from surferdude808:

The Unofficial Problem Bank List changed by a net two institutions this week to 507.

Seven institutions with assets of $1.6 billion were added to the list. The largest addition is First Federal Bank of North Florida, Palatka, FL ($444 million). The OCC did not release its actions for October today so we will look for those additions next week.

Assets on the list fell substantially from $330 billion to $304 billion as $13.2 billion of the decline came from the three failures last week -- United Commercial Bank ($12.8 billion), Prosperan Bank ($197 million), and Home Federal Savings Bank ($14 million) – and 2 banks that underwent unassisted mergers during July -- Discovery Bank ($151 million), and Southern Bank of Commerce ($30 million).

The list has been updated to include asset figures for the third quarter of 2009, which accounted for $14.5 billion of the decline in assets from last week. The largest decline in assets during the quarter occurred at AmTrust Bank (down $1.7 billion) and Woodlands Commercial Bank (down $1 billion). The average decline in assets during the quarter was $29 million but the median decline was only $4.5 million.

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Re: Daily Digest - November 16

Fast money laughed their a$$ off at Peter today on fast money. They shrugged off Meredith Whitney also. Fast money has been right the market is going higher......at least for now. What they don't connect is it is all do to the dollar falling apart.

Peter states at the end "the American public is going to pay dearly for what Ben Bernanke is doing to us".......and they laugh on. If what Peter says comes true what great video replays this will make.

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Re: Daily Digest - November 16

Fast Money is good because it shows how the consensus thinks on Wall Street. True that there is a larger percentage of money managers that are more conservative but if the uberbulls keep buying stocks then the conservative MM's will be forced to buy in as well. This market will go higher and the dollar lower until we have the carry trade unwind. No one knows when.

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Damnthematrix
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Re: Daily Digest - November 16

http://market-ticker.denninger.net/archives/1631-You-Stupid-Fool-Bernanke.html

You Stupid Fool (Bernanke)

Does anyone remember my ranting at Paulson when he was talking about his "Bazooka"?  Here is what I said:

This joins the list of other "dead wrong" statements you've made, of which I am keeping a running copy and sent them around on the 19th of July. 

How many times do you get to be wrong as Treasury Secretary Hank before you resign in shame?

And now I must ask again - is that really a Bazooka in your pocket, or an empty launcher?  I'm not the only one that's curious you know; the bond market seems to think it smells like BS, and so does the stock market.

Fannie and Freddie collapsed, remember?

Paulson was proved - and rather quickly so - to be completely full of crap.

Bernanke's comments today may have just provoked a dollar catastrophe - a collapse move that may have just begun.  Witness this chart:

The market took about 10 minutes to discern that Bernanke's "concern" was BS, and now has pushed in the chips - "all in" - breaking key support below 75 - and still going.

The carry traders have redoubled their bets and obviously intend to force Bernanke to either put up or shut up.

The problem with Paulson's claim is that when the market called the bluff he wound up sticking the taxpayer for up to $400 billion, of which more than $100 billion has now been dissipated.

It appears the FX market intends to force Bernanke (and Geithner) to either defend the dollar or allow it to collapse.  The violence of this move and the concurrent "ramp job" that accompanied it in the S&P 500 makes clear a few points though.

  • The "efficiency" of transmission between this move down and the move up in the stock market is lower than the previous moves have been, although the correlation remains intact.
  • The FX markets will press this bet incessantly as they did when Geithner last mouthed the "strong dollar" mantra.

The Fannie and Freddie game wound up bankrupting both firms and forcing the government to bail them out.

Who is going to bail out the United States Government if and when the FX markets and carry traders cause a disorderly collapse in the dollar?

Just as with Paulson's idiocy I'll bet not one person in Congress or The Administration will stand up and put a sock in Bernanke, despite the fact that we are again seeing the "ALL IN!" game when the person doing it is holding 2-7 off-suit.

But this post, if Bernanke has indeed provoked a collapse of the dollar, is one I will be printing as a full-page advertisement in USA Today - if there still is a USA Today, or for that matter any other national newspaper to which one can freely insert material, in a couple of years.

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Re: Daily Digest - November 16
idoctor wrote:

Fast money laughed their a$$ off at Peter today on fast money. They shrugged off Meredith Whitney also. Fast money has been right the market is going higher......at least for now. What they don't connect is it is all do to the dollar falling apart.

Peter states at the end "the American public is going to pay dearly for what Ben Bernanke is doing to us".......and they laugh on. If what Peter says comes true what great video replays this will make.

+1 !!!!

Gold, Paper Scissors.  When I see Alan Greenspan buying gold I know Peter is correct.

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Re: Daily Digest - November 16
DailyDigest wrote:

and the incomplete combustion in the old diesel engines that propel most of the cars and trucks in the city. According to some estimates, black carbon may be responsible for as much as 18% of the planet's warming.

Hey, that might actually be good news.. when all the machinery stops working, we'll be left with 18% less warming stuff in the atmosphere :)

Samuel

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Re: Daily Digest - November 16

"When I see Alan Greenspan buying gold I know Peter is correct."

that thought crossed my mind as well

anyone see the latest busting on Geithner?

http://www.zerohedge.com/article/moral-hazard-defined-goldmans-response-frbny-aig-let-it-fail-we-are-insured 

the other agenices are picking it up as well

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Posts: 34
Re: #8 Saxplayer

"China has surpassed the U.S. as the world’s largest car market, and consumers there are expected to buy as many as 50 million new cars and trucks a year by 2020...."

Just as well they've got trillions of spare US greenbacks to fund their own "Clash Flor Crunkers"  in 2021 - I hope they're taking careful note (not just US Treasury notes).

..2020 eh...? 11 years to dream and enjoy themselves with the Good Old Commander....

Gee, I don't want to spoil the fun but I hope they really are taking note - they'll need those US greenbacks 'cos AIG ain't around to bail anyone out.

You say "That's the way the cookie crumbles" . Over here in Europeland I say "That's the way the Mercedes Benz"  - having so many cars causes a lot of damage.

GrouchoSchumacher - happy driving.

 

GrouchoMarxist's picture
GrouchoMarxist
Status: Bronze Member (Offline)
Joined: Nov 13 2009
Posts: 34
Re: Daily Digest - November 16

Oh, by the way I love the show - been watching it daily for over a year - "A dose of ChrisM a day keeps the expert at bay" - great stuff. I love the floor spots by Mr. Matrix (and his amazing solar house), Mr SaxPlayer - great tunes, Davos - all of you keep it coming.

I heard a funny story on the BBC radio couple of weeks ago - Iran...wmd...Israel...nukes...what to do? etc.. The  BBC 'Today' morning programme introduced an 'expert' in the field of middle-east ,,,er,,,diplomacy.  I waited with baited breath for an ex-ambassador, an accademic, an ex-president, even Mother Theresa might speak ..... no, the only person they could find was your very own "Prince of Darkness" Richard Perle - Of all the famous, independent, balanced, expert academics and ex-political leaders on Middle-east situation... they lifted up a rock and out crawled Richard Perle.  I was so surprised I had to have another cigar and go and listen to Alex Jones at InfoWars to calm me down.

He talked quite blandly about his favourite topic of World Peace and harmony, and how to achieve it - he repeated pretty much the same ideas as this 2006 story -  'Perle Harbour'. 

I'll listen out for the BBC's next interview and post a link next time, they're quite funny - but you have to sit down. Maybe the BBC will open up a special direct line to the 'Dark Side" and get some good interviews from Pol Pot, or Tricky Dicky, or Uncle Joe, or Pinochet, even fun-loving Hitler - they all knew a thing or two.

I do love this show and I'll be sorry when the fat lady stops singing. With the likes of Richard Perle on the lose again we can look forward to some lovely shows in the near future.

Groucho

gregroberts's picture
gregroberts
Status: Diamond Member (Offline)
Joined: Oct 6 2008
Posts: 1024
Re: Daily Digest - November 16

More Americans Bypass Banks

http://www.parade.com/news/intelligence-report/archive/091108-more-ameri...

rhare's picture
rhare
Status: Diamond Member (Offline)
Joined: Mar 30 2009
Posts: 1323
As dollar tumbles, America is up for grabs

After reading the "As the dollar tumbles, America up for grabs" article I came across this:

China, U.S. eye pact to help troubled banks

MarkM's picture
MarkM
Status: Platinum Member (Offline)
Joined: Jul 22 2008
Posts: 837
Re: Daily Digest - November 16
rjs wrote:

Message from the Gyre - the damage done by our garbage patch (photos)

Just a little "collateral damage" from the "War of Infinite Growth and Prosperity".

Samuel Reed's picture
Samuel Reed
Status: Member (Offline)
Joined: Jan 10 2010
Posts: 1
Re: Daily Digest - November 16

"Even if fewer troops are sent, or their mission is modified, the rough formula used by the White House, of about $1 million per soldier a year, appears almost constant."

"The United Nations launched an online appeal for individual donations to fight hunger as donor nations tackle an economic crisis and, for the first time in history, more than 1 billion face starvation worldwide."

Thanks for the interesting links! Greetings, Samuel

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