Daily Digest

Daily Digest - September 11

Friday, September 11, 2009, 10:57 AM
  • Living in Beverly Hills (Jim Quinn)
  • America is Operating Under a Form of Economic Mass Psychosis
  • Consumer Credit Deflating
  • Outsourcing Unemployment - America to China...
  • Bubbles
  • Keiser: Collapse
  • U.S. foreclosures/repossessions on track to hit 5 million in '09
  • Option ARM Disaster Arrival
  • Without any Clue: Working for a private bank is public service

Economy

LIVING IN BEVERLY HILLS, (Jim Quinn)

A drug addict still needs a dealer to get their fix. Politicians in Washington with their cohorts in crime, the Federal Reserve and the banking cartel, provided the drug of easy money. The unholy combination of a psychological need to appear successful and easy money has created a deadly recipe for those in the middle class who drive their modest cars for 10 years and save for the future. The black magic of securitization has allowed banks and finance companies to bestow credit card cards and car loans to high school dropouts making $20,000 per year in West Philly with no concern about getting repaid. They packaged this future bad debt, paid off Moody’s and S&P to rate it AAA, and dumped it on suckers throughout the world. Now, auto loan delinquency rates are at all time highs, 1.7 million cars were repossessed in 2008, with another 2 million likely to be repossessed in 2009.

America is operating under a form of Economic Mass Psychosis

[Good link to Carlyl video on page]

Speaking of the Bin Laden family… my first eye opening experience to the way the real world works was when I was in the military and they implemented the AVIP (anthrax vaccine program). It turns out that then retired former Chairman of the Joint Chief of Staff, Admiral Crowe (note what he did AFTER retirement), was hired by a European man of middle-eastern descent with the last name of Bin Laden. Yes, a member of the Bin Laden family. He was hired by Bin Laden’s latest acquisition, a company called Bioport, Inc. of Lansing, Michigan.

Bioport was the only producer of the Anthrax vaccine that was first made during the WWII timeframe (and not tested under anything like modern test standards – although the military represented it as such and stated that is was in common use by veterinarians – one quick call to the largest vet school in the nation ended that farce – one of many).

Consumer Credit Deflating

Outsourcing Unemployment - America to China...

Depression versus Recession?

In an email exchange, Mish expanded his thinking:

“I believe we are in a depression."

Bubbles

Keiser: Collapse

U.S. foreclosures/repossessions on track to hit 5 million in '09

The U.S. propaganda machine was positively giddy last month when the latest “existing home sales” data showed a “jump” to an annualized rate of 5.2 million units. However, with sales in previous months this year much lower, total sales are unlikely to exceed 5 million units for this year, even if the July pace is sustained until year-end.

Despite this modest bounce in sales, the “experts” were (once again) saying the U.S. housing market had “bottomed”. This mindless euphoria was epitomized in a Bloomberg article with a quote from Ellen Zentner, a senior economist for the Bank of Tokyo, who stated, “We can count on housing no longer being a drag on the U.S. economy.”

Option ARM Disaster Arrival

Well if you look at California, the state with the most option ARMs it has an unemployment rate of 11.9 percent and just patched up $60 billion in budget deficits. The losses will be bad. Assuming the 45 percent loss ratio, we are looking at $85 billion in losses simply from option ARMs. So much for the optimistic banking scenario.

Without any Clue: Working for a private bank is public service

19 Comments

idoctor's picture
idoctor
Status: Diamond Member (Offline)
Joined: Oct 4 2008
Posts: 1731
Re: Daily Digest - September 11

Eviction Patrol Overloaded with Flood of Foreclosures

http://www.cnbc.com/id/32797136

ELIZABETH S.'s picture
ELIZABETH S.
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Posts: 23
Re: Daily Digest - September 11

I'm looking at the slide of the US Dollar Index....

What's going on with that?

saxplayer00o1's picture
saxplayer00o1
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Posts: 4147
Re: Daily Digest - September 11
  • Notice on # 3 that c. banks' holdings of U.S. debt fell. The 7th paragraph from the bottom on yesterday's news says they were buying.
  • On # 2 is that Mr. Dollar not being able to defend the dollar?
 
 
 
 
 
  • 1) "Chavez noted that Cuban leader Fidel Castro was always right when he called irresponsible the US practice of printing money and buy the world with that paper.

    Venezuela hopes the ruble becomes a convertible currency and part of international reserves, stressed Chavez."

 

 

 

 

 

 

 

dcm's picture
dcm
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Posts: 214
Re: Daily Digest - September 11

You can't keep a golden man down

 http://www.gata.org/node/7779

Ruhh's picture
Ruhh
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Posts: 259
Re: Daily Digest - September 11

Been trying to sneak this read in while at work and haven't gotten through it all yet but this looks like a good article on China, Derivatives and Gold/Silver.

Derivatives Collapse and the China Gold and Silver Markets
http://www.globalresearch.ca/PrintArticle.php?articleId=15126

bon weekend
r.

One1776's picture
One1776
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Posts: 52
Re: Daily Digest - September 11

Dollar Collapse, Gold, Silver, and an Unsustainable Government.

Part 1:

mesaboogieman's picture
mesaboogieman
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Posts: 42
Re: Daily Digest - September 11

Former Treasury economist confirms our fears-

http://www.forbes.com/2009/09/10/national-debt-default-opinions-columnists-bruce-bartlett.html

gregroberts's picture
gregroberts
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Re: Daily Digest - September 11

Interesting Video

http://www.ted.com/talks/view/id/463

gregroberts's picture
gregroberts
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Re: Daily Digest - September 11

Is another 9/11 set to unfold?

http://www.deseretnews.com/article/705328180/Is-another-911-set-to-unfold.html

saxplayer00o1's picture
saxplayer00o1
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Posts: 4147
Re: Daily Digest - September 11

"Low interest rates have turned the dollar into a "funding currency," whereby investors borrow dollars and buy a foreign currency like the euro, and use that currency to purchase to buy that foreign currency's bond, which has a higher interest rate. When coupled with low volatility, the move, which is known as a "carry trade," exasperates the dollar's fall..."

http://www.forbes.com/2009/09/11/dollar-volatility-short-markets-currencies-risk-deficit.html

pinecarr's picture
pinecarr
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Re: Davos "goes stere'" on Nate's Economic Edge!

Davos, I just jumped to Nate's Economic Edge from an article I was reading, and lo and behold, I see my buddy Davos' smiling face!  I checked it out, and discovered that you are filling in for Nate on his blog while he's on a trip.   How cool!!!  Check it out, folks, at http://economicedge.blogspot.com/2009/09/davos-on-edge-meet-new-boss.html

JAG was right on top of things and already brought this to folks' attention on September 5th, when the post first came out.  But I decided to repeat it here for those slackers like me, who may have taken time off before the kids' school year started after Labor Day, and totally missed the news!

Davos, I can't tell you what a feeling of happiness and pride I felt when I read Nate's article about how you were going to help him out!  What a great feeling when I read his fine comments about what a noble job you do here, and the respect he showed both to you and to Chris for his work and blog here.  I'm still grinning from ear to ear!

Here's an excerpt for folks here:

Saturday, September 5, 2009

T – minus 8 days and counting until launch…

I am now in final preparations for my motorcycle trip through Central and South America. Mixed emotions for sure as it’s going to be an exciting trip, yet I am leaving behind my family and my blog for an extended time – four months.

...

This blog is far too important to me to just abandon it for so long. It’s important because people need someone to cut through all the B.S. that is propagating from the mainstream media and our own government. Thankfully there are people who are tough skinned enough to stand in the heat of the fire and call it for what it is. Sherman (screen name Davos) from Chris Martenson’s site has graciously agreed to help keep you informed. THANK YOU DAVOS!

I can think of no finer site that Chris Martenson’s. Chris writes very meticulously in a manner that is understandable by most, and more importantly he is just correct when he speaks. You will remember that Chris is the author of The Crash Course so I’m going to encourage you to bookmark and view Chris’s blog on a regular basis. His latest article, Unemployment and Government Jobs, is a terrific example of the fine work that Chris does.

Davos has written the “Daily Digest” for quite some time, performing nobly for both Chris and for the people who visit his blog. In my absence, he will be performing basically the same service for you here that he does there. I have given him full reign to post articles as he sees fit and to editorialize at his discretion. His posts, “Davos on the Edge” will provide a thread that I encourage everyone to comment on, and to keep the running market commentary going.

He is the boss while I’m gone and I appreciate everyone jumping in and providing the same good observations that you do while I’m here. Don’t ride him too hard for his inflationist viewpoint, he will be right eventually, just not now, LOL! Okay, forget that, give him a hard time, he is a pilot like me after all! Seriously, be sure to thank him for stepping up and filling in, he does it because he cares and is a proud and true American.

 Congratulations Davos!!  You do us proud!

 

PS JAG, I think it was you who said you couldn't wait to hear Davos "in Stereo" (or was it Cloudfire?); I had to borrow it for the Subject Line 'cuz it was such a great line!

 

pinecarr's picture
pinecarr
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Re: Davos "goes stereo'" on Nate's Economic Edge!

Ok, let's try that Subject line again...

fujisan's picture
fujisan
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Posts: 296
Re: Daily Digest - September 11

AFP: Nobel economist Phelps "gloomy" over US economic future

KRYNICA, Poland — The massive debt being racked up by the United States to exit recession will thwart growth for decades while its "almost useless" financial sector needs deep reform, a Nobel economist said Friday.

"I have a gloomy feeling about the American economy over the next couple of decades," 2006 Nobel Economics Prize winner, Edmund Phelps of the United States, said Friday at Poland's Krynica Economic Forum, known as the "Davos of the East."

"I see the financial sector as almost useless in the promotion of prosperity in the United States," Phelps said. "It will have to be reformed and somehow in principle competition could do that over the decades but I don't think we can wait that long."

...

(emphasis mine)

saxplayer00o1's picture
saxplayer00o1
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Posts: 4147
Re: Daily Digest - September 11

Regulators close banks in Illinois, Minnesota and Washington at a cost of more than $2 billion to the FDIC.

 

 

JAG's picture
JAG
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Posts: 2492
Props to Dr. M and Davos

I came across this article by J.S. Kim this morning, The Coming Consequences of Banking Fraud, and I was struck by this particular snippet:

To truly gain more clarity regarding this recent Western stock market rally, consider a hypothetical scenario in which a person was kept ignorant of any action in the US stock markets for the entire previous six months. Instead, imagine that he or she was given the task of predicting US market behavior over the past six month period solely based upon cold, hard US financial and economic data stripped bare of any of the media-slanted headlines that perpetually spin bad economic data as positive or “less bad” than it truly is. Based upon the economic data produced from the last six months, what do you think this person would conclude? That stock markets have soared during this time or that they had crashed?

It is because of the work of Dr.M and Davos, that I am personally aware of the grim economic picture that belies this market. If it wasn't for your work, I too, would be lulled into accepting the lies that this market rally represents. So, from the bottom of my heart, thank you both for the work that you do day-in, day-out. 

On a side note, nother article worth reading from Mr. Kim is:

Can Rising Stock Markets Serve as a Confirmation of a Crashing Economy?

mainecooncat's picture
mainecooncat
Status: Gold Member (Offline)
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Posts: 488
Re: Props to Dr. M and Davos
JAG wrote:

I came across this article by J.S. Kim this morning, The Coming Consequences of Banking Fraud, and I was struck by this particular snippet:

To truly gain more clarity regarding this recent Western stock market rally, consider a hypothetical scenario in which a person was kept ignorant of any action in the US stock markets for the entire previous six months. Instead, imagine that he or she was given the task of predicting US market behavior over the past six month period solely based upon cold, hard US financial and economic data stripped bare of any of the media-slanted headlines that perpetually spin bad economic data as positive or “less bad” than it truly is. Based upon the economic data produced from the last six months, what do you think this person would conclude? That stock markets have soared during this time or that they had crashed?

It is because of the work of Dr.M and Davos, that I am personally aware of the grim economic picture that belies this market. If it wasn't for your work, I too, would be lulled into accepting the lies that this market rally represents. So, from the bottom of my heart, thank you both for the work that you do day-in, day-out. 

On a side note, nother article worth reading from Mr. Kim is:

Can Rising Stock Markets Serve as a Confirmation of a Crashing Economy?

Just read that one too, JAG. Wonderful. Guy's logic was like a hot knife through butter.

Doug's picture
Doug
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Posts: 3159
Re: Daily Digest - September 11

JAG

Quote:

It is because of the work of Dr.M and Davos, that I am personally aware of the grim economic picture that belies this market. If it wasn't for your work, I too, would be lulled into accepting the lies that this market rally represents. So, from the bottom of my heart, thank you both for the work that you do day-in, day-out. 

I want to second Jeff's expression of appreciation to both Chris and Davos.  Many of my colleagues lost 40+% of their savings in the crash, but now are reassured that their investments are making a big rebound and will soon be back to "normal."   Their denial is is like a suit of armor between them and the new reality we are confronting.  They just don't recognize the chinks beginning to appear in the armor.

Davos's picture
Davos
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Posts: 3620
Re: Daily Digest - September 11

Thanks for the kinds words, please to contribute, I too thank CM for brining the stereogram photo buried below the fake into laser focus. Take care

dockdog's picture
dockdog
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Posts: 3
Re: Daily Digest - September 11

Hi...I'm new to the site and very impressed by everyone's efforts to get at the truth--politically correct or not.  That is why I ask if the "Bubble--Kaiser: Collapse"  viewpoint from the "RT network" is valid.  This is a Russian entity--RT stands for Russia Today.  I suspect that they have an ax to grind against the American system and that their viewpoint is skewed.  This is not the first time I have seen "RT" reports posted here.  Has anyone investigated this channel and come away with a conclusion that they are straight shooters and not propagandists?  

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