Daily Digest

Daily Digest - October 17

Saturday, October 17, 2009, 10:50 AM
  • Ex-FSA chief Sir Howard Davies sees 'dramatic’ risks for Britain 
  • The Return Of The Bonus Bonanza For Bankers
  • Max Keiser (Echoing Mr. Black): "It'd not froth, it's fraud" 
  • gold's price rise is not an inflation function but a change from using dollars as a store of value
  • The economics of gardening
  • Dollar Touches 14-Month Low on Outlook for Fed’s Target Rate
  • Recession Will Be 'Full-Blown Depression': Strategist (Video)
  • Ignorance Is Bliss
  • Max Keiser On JPMorgan, Goldman Sachs Et Al's Fraud

Economy 



Ex-FSA chief Sir Howard Davies sees 'dramatic’ risks for Britain (SolidSwede)

'The next six months are going to be extremely delicate in the UK', said Sir Howard...

The Return Of The Bonus Bonanza For Bankers (SolidSwede)

Catch a friendly banker off-guard and he will confess that he, too, is mystified as to how, in the wake of the worst financial crisis in living memory, he and many of his colleagues are still pulling in such significant pay-packets. But would you, if you were in their position, turn down the cash? And would doing so make any difference? Surely not, since the latest binge is principally an unwelcome consequence of decisions taken by governments and regulators to try to revive the financial system...

Max Keiser (Echoing Mr. Black): "It'd not froth, it's fraud" (David M.)

This is an incredible case of accounting fraud and the American peasants have got to be the stupidest people in the world today: they don't mind becoming peasants, they don't mind living like peasants, and if that's the case, we should do nothing to step them from sliding into a peasant class." And this pearl: "The bankers on Wall Street are the equivalent of suicide bombers in other countries.They threaten to blow themselves up and blow up the economy in exchange for huge bailout money."

Gold's price rise is not an inflation function but a change from using dollars as a store of value (David M.)

The dollar is so much more than just its quantitative body, its size. If it was not, it would have surely collapsed back in the 1970's after being set free from gold. But something else developed, an insatiable demand for dollars that allowed for the supply of money to be increased time and time again with little inflation showing up in prices and almost a negative affect on gold over a 20 year period. How was this possible in a world that was supposed to actually perform under Austrian principles of monetary inflation?

Dollar Touches 14-Month Low on Outlook for Fed’s Target Rate

The dollar dropped the most against the euro in more than a month and reached a 14-month low on speculation the Federal Reserve will trail other central banks in boosting interest rates. Sterling rose against all of its major rivals this week on signs the Bank of England may suspend quantitative easing, reducing concern it’s flooding the market with new currency. The dollar slid as minutes of the Fed’s September meeting showed some policy makers were open to boosting purchases of mortgage- backed securities. The greenback may extend its decline when the central bank releases its Beige Book business survey next week.

Recession Will Be 'Full-Blown Depression': Strategist (Video)

This global recession will turn into a "full-blown depression," Nicu Harajchi, CEO of N1 Asset Management, said Friday, adding that global stimulus hasn't come down to Main Street.

Ignorance Is Bliss (Vinny A.)

While all the talk at present is about economic corners turned and markets charging ahead, no one is paying much notice to an American economy deteriorating before our eyes. These myopic commentators seem to be simply moving past the now almost-universally held conclusion that before the crash of 2008, our economy was on an unsustainable course. If these imbalances had been corrected, then perhaps I too would be joining in the euphoria. But evidence abounds that we have not veered at all from that dangerous path.

Max Keiser On JPMorgan, Goldman Sachs Et Al's Fraud (Vinny A.)

Max Keiser in his prime, discussing whether the crisis is over: "It'd not froth, it's fraud. This is an incredible case of accounting fraud and the American peasants have got to be the stupidest people in the world today: they don't mind becoming peasants, they don't mind living like peasants, and if that's the case, we should do nothing to step them from sliding into a peasant class." And this pearl: "The bankers on Wall Street are the equivalent of suicide bombers in other countries. They threaten to blow themselves up and blow up the economy in exchange for huge bailout money."

Environment

The economics of gardening (David M.)

While saving money may be one of the benefits to growing a vegetable garden – let’s not forget that there are others as well. Gardens are a potential means to increase our confidence in food safety and security. We know where the food is coming from and all the history of plants grown in our own gardens. We know what chemicals were used, we know what pests were problems and we essentially eliminated the whole resource-gobbling transportation chain

5 Comments

DavidC's picture
DavidC
Status: Silver Member (Offline)
Joined: Sep 29 2008
Posts: 243
Re: Daily Digest - October 17

Here is Max Keiser's latest 'On The Edge'

Max Keiser On The Edge 16th October Pt 1
http://www.youtube.com/user/MaxKeiserTV#p/a/u/2/NKsyF523TCs

Max Keiser On The Edge 16th October Pt 2
http://www.youtube.com/user/MaxKeiserTV#p/a/u/1/k_bBB136gWo

Max Keiser On The Edge 16th October Pt 3
http://www.youtube.com/user/MaxKeiserTV#p/a/u/0/Rj4crMCg-XY

DavidC

 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4149
Re: Daily Digest - October 17

"Government workers would have to contribute more of their salaries while getting less in benefits under a plan proposed Friday to rescue the foundering Colorado Public Employees Retirement Association pension fund.

PERA is facing $27.5 billion in unfunded liabilities, threatening the long-term existence of the retirement plan."

"Just this summer, Atlanta raised its property tax rate by 42 percent to close a $56 million budget gap. The city fiscal situation will probably get worse before it gets better, and money for a stadium means less money for other needs.

When revenues do recover, the city’s financial outlook will still be troubled. For one thing, more than $1 billion in pension liabilities will remain unfunded."

"25 million foreclosures in the next few years sounds like an astronomical number. Since this housing crisis started in 2007, there have been close to 8 million foreclosures through the end of September 2009."

  (Read all the way to the bottom and don't miss the last line)

  • 8)

Empty stores piling up in metro area  (Atlanta) 9) Giant landlords desperate for refinance money

"Us: We’ve seen several stunning defaults in commercial properties recently as assets end up under water. The St. Regis hotel, Maguire Properties, the South Coast Home Furnishing Center and numerous housing and retail developments that are being sold for pennies on the dollar or given back to lenders. And yet brokers say that the full impact of commercial foreclosures hasn’t hit yet. What’s in store?

Stan: The commercial sector has not yet fully seen the impact of illiquidity in the capital markets. As a result, we haven’t seen the full magnitude of defaults or foreclosures yet in the marketplace."

.......Now commercial real estate? The original real estate bubble caught a lot of people by surprise.

JAG's picture
JAG
Status: Diamond Member (Offline)
Joined: Oct 26 2008
Posts: 2492
John Mauldin: Muddle Through R.I.P.

Looking forward to this read (though I'm a little scared too).

I posted the PDF of it on my own server which you can view here.

If you don't subscribe to his weekly letter, you can do so at www.2000wave.com

 

Tim_P's picture
Tim_P
Status: Gold Member (Offline)
Joined: Feb 23 2009
Posts: 298
vvolf's picture
vvolf
Status: Bronze Member (Offline)
Joined: Jan 3 2009
Posts: 29
Re: Gold's price rise is not an inflation function but a change

Can we really say that anything will retain value other than what will immediately meet our needs?  Will you be able to trade gold for food when food is more useful, and necessary than gold.  Why, I've thought of food at least once today, and gold....not much since last winter when I sold some loose gold and silver.

 

Retaining Value...what exactly does that mean.

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