Daily Digest

Daily Digest - November 21

Saturday, November 21, 2009, 10:54 AM
  • Gross isn’t buying corporates, high yield or equities even with zero rates
  • Fraud Nation
  • Everyone Now Qualifying For FHA Loans?
  • College Students Hit By High Interest Loans
  • Giant Loophole In Derivatives Regulation Undermines Reform
  • Colorado To Review Taxpayer-Paid Lobbyists
  • Is The US Postal Service Doomed?
  • Goldman Sachs' Thanksgiving Day: Garbage Duty
  • Tent City Founders Seeking Help For Homeless Before Winter
  • What Can Really Happen When A CEO Cuts His Salary?
  • Understanding The Heartbeat Of The Economy
  • The US-China "Electric Vehicles Initiative"
  • A Clever New Way To Measure Soil Moisture May Help Farmers

Economy

Gross isn’t buying corporates, high yield or equities even with zero rates (esiljander)

Gross goes on to recommend high dividend safe stocks like utilities. But, I did get the sense he was talking out of both sides of his mouth. For months now, Gross has been advocating reflation as an economic policy. He has advocated massive deficit spending too. Back in June of 2008, he was the first one I knew who was talking about deficits in the trillions. Yet, here he is cautioning us about inflated asset prices. Well, zero rates and inflated asset prices go hand in hand. And I’m sure Bill Gross knows this.

Fraud Nation

Though private fraud gets the bigger headline (think Bernie Madoff), fraud in federal government programs is now so pervasive that even the Obama press is taking notice.

Everyone Now Qualifying For FHA Loans?

A week ago, Mike and a couple of buddies bought a two-unit apartment building for nearly a million dollars. They had only a little cash to bring to the table but, with the federal government insuring the transaction, a large down payment was not necessary. Some F.H.A. borrowers here say they have the cash for a full down payment but would rather invest it in the stock market or use it for remodeling.

College Students Hit By High Interest Loans

College degrees are supposed to last a lifetime, but should tuition loan payments? How some schools got away with charging interest rates of up to 18 percent.

Giant Loophole In Derivatives Regulation Undermines Reform

The bills, based on a proposal put forth by the Obama administration, would exempt foreign exchange derivatives from disclosure requirements. Supporters of the exemption argue that the system is working fine.

Colorado To Review Taxpayer-Paid Lobbyists

State employees spent $1 million lobbying lawmakers on bills affecting their agencies. The administration and legislators are reviewing the long-standing practice of one branch of government lobbying another as Colorado tries to close a $1 billion budget gap.

Is The US Postal Service Doomed?

Illinois Dem Rep. Danny Davis, a member of the subcommittee that oversees the USPS said, "We've bailed out a lot of things, and I think the Postal Service is probably as important as some of the other places where we have put public money. I'm not afraid of spending public money to keep money flowing."

Goldman Sachs' Thanksgiving Day: Garbage Duty

Three hundred employees of Goldman Sachs will be tasked with taking out the garbage after The Salvation Army serves 10,000 free dinners across the NY city area this Thanksgiving.

Tent City Founders Seeking Help For Homeless Before Winter

Two months after a court ruled in favor of allowing a “tent city” in a city park, advocates say Rhode Island has yet to deal with its homeless problem. “There is no reason why a human being should have to freeze to death under a bridge.”

What Can Really Happen When A CEO Cuts His Salary?

Earlier this year Rob Katz cut his $840,000 a year CEO salary down to $0 for 2009.Then he asked his employees to take cuts as well to help colleagues keep their jobs. Workers were asked to take a 2.5% pay cut; executives 10%; and the board of directors 20%. The moves saved more than $10 million, and only 50 of the 15,000 employees were laid off.

Understanding The Heartbeat Of The Economy

By understanding what makes entrepreneurs tick, we can better support this critical component of our economy. The Kauffman Foundation released a study called "Making of a Successful Entrepreneur" that aimed to learn what makes entrepreneurs successful. The results may surprise you.

Energy

The US-China "Electric Vehicles Initiative"

Electric cars were on the agenda during the meeting between Barack Obama and Hu Jintao.

Economy

A Clever New Way To Measure Soil Moisture May Help Farmers

A research team led by the University of Colorado at Boulder has found a clever way to use traditional GPS satellite signals to measure snow depth as well as soil and vegetation moisture.

14 Comments

IceViking's picture
IceViking
Status: Member (Offline)
Joined: Sep 26 2009
Posts: 15
Re: Daily Digest - November 21

1730 ET…February 21, 2010

It was a typical Sunday night in my household, a tremendous dinner, nice weather in Florida and of course a chance to chat with my friends online about the events of the world. The big news was that on Friday, February 19, 2010 the US Dollar Index closed at 69.07 far below any level in history and of course shattering all known technical support. As I grabbed a glass of Port and settled in front of my computer at 5 p.m. Eastern to watch the Asian fireworks and watch Bloomberg and CNBC-Asia on my computer, I noticed the Middle Eastern markets closed in horrid shape.

The Israeli market closed three hours after the open and down 22% for the session. The Saudi markets closed after one hour and down 41%.  Other regional markets did not open or were shut down due to national emergency declarations. As I tuned in expecting the usual repeat on Bloomberg, it was live with a somewhat excited news babe reading information from a blog reporting “rumors” that the CEO’s of Citigroup and Bank of America were in meetings since 11 a.m. with the New York Fed. At that point, it was time to put the port up and break out the hard stuff.

Gold had closed at a record high again, up some $37 to finish Friday’s session up at $1289 and change so I figured it would be jumping again with all of this worldly instability on display. I searched the boards and feeds like mad, looking for anything on an Iranian attack or outbreak of war elsewhere in the world but nothing was found at all. As 6 p.m. Eastern flipped up on my watch, CNBC interrupted their programming with a live update from New York instead of Australia or Tokyo about the meeting at the NY Fed. Bloomberg also broke from their Asian coverage with a brief story but no details as to why there was a meeting today or who else was there.  As the New Zealand markets opened, the prices went nuts but shockingly to the upside. Their markets shot up 11% on the open to break over the 3900 price level but that was not the story. As the futures opened in Chicago for the evening session, no matter where you were in the world that day or night, you printed that screen at 6:04 p.m. Eastern time as the prints were staggering:

Gold UP $212.15 to $1501.15

Silver UP $39.13 to $81.06

US DOLLAR INDEX DOWN 9.5869 or just over 14% to 59.4830

US S&P FUTURES DOWN 49.13

US DOW FUTURES DOWN 472

NASDAQ FUTURES DOWN 135

Holy Smokes! 

nice read and more at http://johngaltfla.com/

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Daily Digest - November 21
IceViking wrote:

1730 ET…February 21, 2010

It was a typical Sunday night in my household, a tremendous dinner, nice weather in Florida and of course a chance to chat with my friends online about the events of the world. The big news was that on Friday, February 19, 2010 the US Dollar Index closed at 69.07 far below any level in history and of course shattering all known technical support. As I grabbed a glass of Port and settled in front of my computer at 5 p.m. Eastern to watch the Asian fireworks and watch Bloomberg and CNBC-Asia on my computer, I noticed the Middle Eastern markets closed in horrid shape.

The Israeli market closed three hours after the open and down 22% for the session. The Saudi markets closed after one hour and down 41%.  Other regional markets did not open or were shut down due to national emergency declarations. As I tuned in expecting the usual repeat on Bloomberg, it was live with a somewhat excited news babe reading information from a blog reporting “rumors” that the CEO’s of Citigroup and Bank of America were in meetings since 11 a.m. with the New York Fed. At that point, it was time to put the port up and break out the hard stuff.

Gold had closed at a record high again, up some $37 to finish Friday’s session up at $1289 and change so I figured it would be jumping again with all of this worldly instability on display. I searched the boards and feeds like mad, looking for anything on an Iranian attack or outbreak of war elsewhere in the world but nothing was found at all. As 6 p.m. Eastern flipped up on my watch, CNBC interrupted their programming with a live update from New York instead of Australia or Tokyo about the meeting at the NY Fed. Bloomberg also broke from their Asian coverage with a brief story but no details as to why there was a meeting today or who else was there.  As the New Zealand markets opened, the prices went nuts but shockingly to the upside. Their markets shot up 11% on the open to break over the 3900 price level but that was not the story. As the futures opened in Chicago for the evening session, no matter where you were in the world that day or night, you printed that screen at 6:04 p.m. Eastern time as the prints were staggering:

Gold UP $212.15 to $1501.15

Silver UP $39.13 to $81.06

US DOLLAR INDEX DOWN 9.5869 or just over 14% to 59.4830

US S&P FUTURES DOWN 49.13

US DOW FUTURES DOWN 472

NASDAQ FUTURES DOWN 135

Holy Smokes! 

nice read and more at http://johngaltfla.com/

4 G's

FireJack's picture
FireJack
Status: Silver Member (Offline)
Joined: Feb 8 2009
Posts: 156
Re: Daily Digest - November 21

That one about the FHA loans is disturbing. It's proof that all the good economic news lately is more government spending making the problem worse. Now here in canada there talking about having these anything goes mortgages, though I doubt we could have anything close to the type of housing bubble that went on in the states.

JAG's picture
JAG
Status: Diamond Member (Offline)
Joined: Oct 26 2008
Posts: 2492
Signs Of A Bad Economy

idoctor's picture
idoctor
Status: Diamond Member (Offline)
Joined: Oct 4 2008
Posts: 1731
Re: Daily Digest - November 21

Mikey1052's picture
Mikey1052
Status: Bronze Member (Offline)
Joined: Dec 8 2008
Posts: 41
Signs of a bad economy

Cats are always so dramatic...

UselessEater's picture
UselessEater
Status: Bronze Member (Offline)
Joined: Aug 23 2009
Posts: 42
Re: Daily Digest - November 21

Fraud Nation should include how they buy votes.

How The Democrats Bought A Key Healthcare Vote For $100 Million

 

http://www.businessinsider.com/how-the-democrats-bought-a-key-healthcare-vote-for-100-million-2009-11

idoctor's picture
idoctor
Status: Diamond Member (Offline)
Joined: Oct 4 2008
Posts: 1731
Re: Daily Digest - November 21

Headless's picture
Headless
Status: Gold Member (Offline)
Joined: Oct 28 2008
Posts: 363
Re: Daily Digest - November 21

Mono said (yesterday):

"Headless,  your comment is totally unacceptable. It should be taken off and you should be banned from this site.

mono"

I agree Mono. The value of my comments is that you are now aware that there are people who feel like me. I have been working in inner-city (ghetto) schools for most of my life, volunteering in prisons and jails, and generally trying to offer a hand up to those who never had a chance via their upbringing; what are all my efforts good for when there are organizations like Goldman Sachs ensuring that no matter what skills I provide my students with they will have no future. It gets tougher every day to walk into that classroom and pretend that I'm doing something of value...when I know otherwise.

I agree Mono. My comment is totally unacceptable; such statements should not even be conceivable in the mind of an American that grew up in the America that I thought I grew up in. Thanks to our criminal corporo-government, my thoughts are more and more common in the minds of average Americans. I just happen to be willing to express my rage in a public forum; I'm not ready--yet--for what I should really do...
Respectfully,
Headless
P.S. I know more than one person that is much, much madder than me... You really think there's going to be something to stop those who have nothing to lose from exacting a little justice?
Jasenica's picture
Jasenica
Status: Bronze Member (Offline)
Joined: May 6 2009
Posts: 35
Re: Daily Digest - November 21

Why is the price of crude oil increasing when demand is decreasing?

http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentID=20...

idoctor's picture
idoctor
Status: Diamond Member (Offline)
Joined: Oct 4 2008
Posts: 1731
Re: Daily Digest - November 21

Why is the price of crude oil increasing when demand is decreasing?

Because the dollar is getting weaker. Bernanke is a dangerous man........he is a printer!!

Headless's picture
Headless
Status: Gold Member (Offline)
Joined: Oct 28 2008
Posts: 363
Re: Daily Digest - November 21

The fact that this program (

) has had only 150ish hits in the many months it's been available is a sure sign that the average American will not know what hit him/her until the cupboard is "inexplicably" bare... 

 

 

 

VeganDB12's picture
VeganDB12
Status: Platinum Member (Offline)
Joined: Jul 18 2008
Posts: 731
Re: Daily Digest - November 21
Headless wrote:

The fact that this program (

) has had only 150ish hits in the many months it's been available is a sure sign that the average American will not know what hit him/her until the cupboard is "inexplicably" bare... 

 

 

 

 

Of course, but fwiw it is up to 185 this morning, including +1 from me.

The idea that well documented property rights averts the theft of property (I think they are referring to land, derivatives and their underlying equity) is a new idea to me, certainly makes sense. What a brilliant and articulate panel of scholars engaging in honest, insightful, rational discourse on redistribution of wealth, the real estate and banking crisis, etc.... done with good will and mutual respect.   Refreshing.

mono's picture
mono
Status: Martenson Brigade Member (Offline)
Joined: Nov 13 2008
Posts: 70
Re: Daily Digest - November 21

Headless. 

I respect that you are volunteering in prisons and jails and trying to offer a hand to those who never had the chance via their upbringing, but maybe you have to reconsider what you are doing, when it quite obviously has such a destructive effect on you.

One of the nurses from the Kindergarden where my daughter went to once told me, before this job she worked in a ghetto type problem area Kindergarden and she was determined to help exactly those who needed her most. She did it for a long time but eventually had to get out because she was´nt able to take it anymore. They could´nt put a children´s knife on the table for lunch because the boys would immediately try to stab each other, because that´s what they´ve learned a knife is for.

You can´t save the world "Headless", if it get´s to you too much you also have the responsibility to help yourself!


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