Daily Digest

Daily Digest - September 14

Monday, September 14, 2009, 9:49 AM
  • Weekend Stupidity Roundup: Debt On Parade
  • Federal Reserve Oversight and the Failure of Riverside Bank of the Gulf Coast
  • Failed Banks, Julian Week #37 Banks #90-93
  • Max Keiser: GP Morgan Goldman Sachs Gold Silver Wall Street
  • FSN, Peter Schiff, Inflation or Deflation?
  • Adviser: High Unemployment For Years
  • Mike's Take On DC Protest Of Too Much Spending
  • FSN: Same as it ever was, 1930s Depression and now

Economy

Weekend Stupidity Roundup: Debt On Parade

Max Keiser: GP Morgan Goldman Sachs Gold Silver Wall Street

Federal Reserve Oversight and the Failure of Riverside Bank of the Gulf Coast

"Emerging problems" in 2007? I strongly believe that action should have been taken much sooner - at least by 2005 - because of 1) concerns about the housing market, and 2) the concentration of loans in residential real estate. From the report:

Historically, Riverside-Gulf Coast focused on growth through real estate lending in its local service area, a business strategy that created concentrations in both the type of loans and the geographic location. In general, local real estate concentrations increase a financial institution’s vulnerability to cyclical changes in the local market place and may elevate a bank’s safety and soundness risk. Examiners noted that Riverside-Gulf Coast experienced rapid growth during its first six years when the bank’s total assets grew approximately 40 percent annually, to $275 million as of December 31, 2003.

Failed Banks, Julian Week #37 Banks #90-93

Corus Bank, N.A. Chicago IL 13693 September 11, 2009 September 11, 2009
Venture Bank Lacey WA 22868 September 11, 2009 September 11, 2009
Brickwell Community Bank Woodbury MN 57736 September 11, 2009 September 11, 2009

FSN, Peter Schiff, Inflation or Deflation?

Mp3 / Windows Media / Real Player

Adviser: High Unemployment For Years

The president’s chief economic adviser warned Friday that the nation’s unemployment rate could stay “unacceptably high” for years to come — a situation that would seriously complicate Barack Obama’s ability to convince Americans that he’s beating back the recession.

“The level of unemployment is unacceptably high,” National Economic Council Director Larry Summers said Friday. “And will, by all forecasts, remain unacceptably high for a number of years.”

Summers’ comments came in a briefing with reporters ahead of Obama’s speech in New York City on Monday, marking the one-year anniversary of the collapse of Lehman Brothers, an event widely regarded as having created a panic that caused the global economic meltdown.

Mike's Take On DC Protest of Too Much Spending

I was at the rally yesterday in D.C., working to educate others that were open minded to listening. 50,000 is such a low estimate it is laughable. I have no experience estimating crowd size, but the march down Pennsylvania Avenue was about a mile long and absolutely filled it. There were many others on the periphery as well. 1 million sounds like a very reasonable lower range to me.

Most that showed up there were simply "anti-Obama," "anti-socialism," but there were a significant number that seemed to have an understanding of the Federal Reserve system and were very responsive when an individual started a chant around the Fed. There also seemed to be a growing awareness of the corrupt revolving door politics with the banks that have a vice grip on our political system.

Anyone that characterizes this rally as simply a "health care thing" is grossly mistaken. Further, there were clearly people there that had no interest in politics for many many years, but have recently become energized. Most interesting of all, were the multiple WWII veterans that appeared in wheelchairs to protest our foreign policy.

__________________

-formerly StudentOfJefferson, reporting live from the Washington D.C. Metro Area

FSN: Same as it ever was, 1930s Depression and now

Mp3 / Windows Media / Real Player

21 Comments

Asok's picture
Asok
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Re: Daily Digest - September 14

Schiff link and the "same as it ever was" link are the same.

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Montana Native
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Re: Daily Digest - September 14

“The question then is who is going to finance the U.S. government,” Stiglitz said.

Saw this one floating on a few sites yesterday.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aYdgQkXu9eBg

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saxplayer00o1
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Re: Daily Digest - September 14

Just a few news items today:

1) Ventura County Pension Costs Out of Control, Says Grand Jury

"Its June 10 report, Ventura County Pension: An Uncontrollable Cost, is a microcosm of California county pension woes: almost $1 billion lost in fund assets in calendar year 2008, projected increases of over $100 million in costs by 2013, portfolio returns way below the 8 percent actuarial assumed earnings rate.

2) Pension troubles mount with investment losses

  • "Riverside County could have to pay an estimated $119 million more annually to support its pension fund starting in fiscal 2013, county Chief Financial Officer Paul McDonnell said. That's on top of what the county is already required to pay into its retirement fund -- about $144 million this fiscal year and likely more next year, according to a March report from the county's Pension Advisory Review Committee.
  • The increased payments could further drain the county's budget, already anemic from property and sales tax losses and deep state funding cuts."

 

3) 'We're going to have zombie capitalism for the next 15-20 years,' says Jim Rogers

"Reiterating his view about US monetary policy and their effect on the Dollar, Rogers warned. "I would expect there to be a currency crisis or a semi-crisis this fall or next year. It's crony capitalism, Bernanke and Greenspan have brought crony capitalism to America … but that's not going to solve the world's problems.""

'I Expect a Currency Crisis or Semi-Crisis': Jim Rogers  

4) Food for hungry may be in jeopardy if state-funded program is cut back

5) States targeting Medicaid physician pay

  • The federal stimulus package that boosted Medicaid funding to states did not protect doctors from reductions.

6) Harrisburg: Where does city go from here?

  • Harrisburg has three viable options: Sell assets, enter the state's "distressed city" program or declare bankruptcy.
MarkM's picture
MarkM
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Re: Daily Digest - September 14

Reporrt on container ship traffic.

http://www.dailymail.co.uk/home/moslive/article-1212013/Revealed-The-ghost-fleet-recession.html

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saxplayer00o1
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Re: Daily Digest - September 14
  • WCU?
  • 1) The central banks of Russia and Vietnam have signed a deal to allow payments for bilateral trade in national currencies, the Russian regulator said in a statement on Monday.

"Russia is seeking a greater world role for the rouble, with officials saying it could eventually becoming a regional or even a global reserve currency."

  • 2)New World Currency Introduction
  •  LONDON, September 11 /PRNewswire/ -- This week the world's financial markets will see the first ever execution and settlement of a trade conducted in Wocus(TM) (World Currency Unit), the newly-introduced world currency.
  • 3) This youtube video was posted a few days ago, but check out the latest from ICN Informed Citizen News.
  • Here are the stories

Story #1 - IRS to be health care enforcer

Story #2 - Medicare troubles

Story #3 - Pfizer pleads guilty to felony
Story #4 - Commercial real estate collapse kicked down road

Story #5 - Obama shift from owning to renting

Story #6 - Banks could get ugly fast

Story #7 - We didn't really make money from tarp

Story #8 - Food Stamps reach 35 million
Story #9 - RV cities

Story #10 - Corporate Insider Selling

Story #11 - Throw the bums out

Story #12 - "I Pledge"

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imagesbytjm
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Re: Daily Digest - September 14

I don't know if this has been posted before, but I just found it.  If it has, sorry.

Great article on the banksters at Goldman's. 

 

www.rollingstone.com/politics/story/29127316/the_great_american_bubble_machine

dockdog's picture
dockdog
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Bubbles--Kaiser: Collapse

Hi Davos...I am new to the site and and thrilled to find a place where there are facts and numbers to consider--not just guesses.  I do have one question: I have seen several videos posted from the "RT Network".  RT is short for Russia Today.  How do we know the commentators and interviewers there are straight shooters and not offering propaganda from an obviously bitter Russian government?

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SagerXX
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Re: Bubbles--Kaiser: Collapse
dockdog wrote:

Hi Davos...I am new to the site and and thrilled to find a place where there are facts and numbers to consider--not just guesses.  I do have one question: I have seen several videos posted from the "RT Network".  RT is short for Russia Today.  How do we know the commentators and interviewers there are straight shooters and not offering propaganda from an obviously bitter Russian government?

Double-check their facts elsewhere.  Note the differences between facts, opinions and beliefs.  Read w/a critical eye (as we always should, whether it's Paul Krugman or Al Jazeera)...

Viva -- Sager

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Re: Daily Digest - September 14

Davos, you are one of my heros - I check your site every day.

I thought this was a great video to gauge the size of the crowd in DC on Saturday.  I wanted to go. but my husband has currently joined the ranks of the unemployed (sigh)...

Damnthematrix's picture
Damnthematrix
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Re: Daily Digest - September 14

"In a dramatic move, the Philadelphia Free Library System announced today that
it will close all branch, regional and central libraries as of Oct. 2. There
will be no book loans, no classes, no programs for seniors or children, no
outreach to the community, no more community meetings at library locations.
Starting today, the library began truncating its loan period.

The library system of one the nation's oldest cities — which authors Ben
Franklin, R. Crumb, Edgar Allen Poe, Louisa May Alcott and Ezra Pound all called
home — stands on the brink of complete closure."

http://latimesb
logs.latimes.com/jacketcopy/2009/09/philadelphialibrariesclose.html

green_achers's picture
green_achers
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Re: Daily Digest - September 14

In re the video linked in post # 9:

Just on a technical note, it would be interesting to know how much that video was sped up.  It certainly looks like the crowd walked past the camera for a long time, but how long was it actually?  The march part of the video lasts about 3 minutes.  If the vid was sped up 10X, that would be about 30 minutes.  Maybe the march lasted a lot longer than the video caught?

I stood in one place at one of the protest marches in San Francisco and watched the crowd walk by for over two hours.  The estimate of the crowd size was given from 1-2 million.

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FireJack
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Re: Daily Digest - September 14

Calcualted risk is once again tooting the "Recession is over" horn. Why? Because the San Francisco Fed President says so. This is the reason she gives for the recent housing bubble:

"For years prior to the recession, households went on a spending spree. This occurred during a period that economists call the “Great Moderation,” about two decades when recessions were infrequent and mild, and inflation was low and stable. Credit became ever easier to get and consumers took advantage of this to borrow and buy. Stock and home prices rose year after year, giving households additional wherewithal to keep spending. In this culture of consumption, the personal saving rate fell from around 10 percent in the mid-1980s to 1½ percent or lower in recent years. At the same time, households took on larger proportions of debt. From 1960 to the mid-1980s, debt represented a manageable 65 percent of disposable income. Since then, it has risen steadily, with a notable acceleration in the last economic expansion. By 2008, it had doubled to about 130 percent of income."

I've noticed Denninger is getting increasingly pissed at how the worst is happening. How long till these lies are exposed?

JAG's picture
JAG
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So What Happens When The Music Stops?

This perplexing market continues....

From Zero Hedge: So What Happens When The Music Stops?

switters's picture
switters
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Re: Daily Digest - September 14
Damnthematrix wrote:

"In a dramatic move, the Philadelphia Free Library System announced today that
it will close all branch, regional and central libraries as of Oct. 2. There
will be no book loans, no classes, no programs for seniors or children, no
outreach to the community, no more community meetings at library locations.
Starting today, the library began truncating its loan period.

The library system of one the nation's oldest cities — which authors Ben
Franklin, R. Crumb, Edgar Allen Poe, Louisa May Alcott and Ezra Pound all called
home — stands on the brink of complete closure."

http://latimesb
logs.latimes.com/jacketcopy/2009/09/philadelphialibrariesclose.html

That is so very sad.  I'm dreading the day that will happen where I live.  It's probably not far away.

Woodman's picture
Woodman
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Posts: 1028
Re: Daily Digest - September 14

An anecdote:

I finally got the letter from Bank of America stating my home equity line credit limit was reduced by more than half.  When I originally applied on the phone for the line they encouraged me state what the maximum I thought my home was worth; the difference between my simple unverified statement and my mortgage balance became my assigned credit limit.  Nothing owed on it now and I was never stupid enough to max it out; but they were stupid to expose themselves to the risk I would.  Or maybe they just cared about maximizing the interest and to heck with the principle.

Damnthematrix's picture
Damnthematrix
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Re: Daily Digest - September 14
Poll: News media's credibility plunges to new low
By MICHAEL LIEDTKE, THE ASSOCIATED PRESS
2009-09-14 06:28:00
 

 

SAN FRANCISCO - The news media's credibility is sagging along with its revenue.

Nearly two-thirds of Americans think the news stories they read, hear and watch are frequently inaccurate, according to a poll released Sunday by the Pew Research Center for the People & the Press. That marks the highest level of skepticism recorded since 1985, when this study of public perceptions of the media was first done.

The poll didn't distinguish between Internet bloggers and reporters employed by newspapers and broadcasters, leaving the definition of "news media" up to each individual who was questioned. The survey polled 1,506 adults on the phone in late July.

The survey found that 63 per cent of the respondents thought the information they get from the media was often off base. In Pew Research's previous survey, in 2007, 53 per cent of the people expressed that doubt about accuracy.

The findings indicate U.S. newspapers and broadcasters could be alienating the audiences they are struggling to keep as they try to survive financial turmoil. Pew Research didn't attempt to gauge how shrinking newspapers, reduced staffs and other cutbacks at news organizations are affecting people's perceptions, although the reductions probably haven't helped, said Michael Dimock, an associate director for the center.

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britinbe
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Re: Bubbles--Kaiser: Collapse
dockdog wrote:

Hi Davos...I am new to the site and and thrilled to find a place where there are facts and numbers to consider--not just guesses.  I do have one question: I have seen several videos posted from the "RT Network".  RT is short for Russia Today.  How do we know the commentators and interviewers there are straight shooters and not offering propaganda from an obviously bitter Russian government?

Every news channel has their bias, be it CNN, Fox, RT, France 24, Sky, BBC, China, etc etc.  Flick through them all and one gets different view point.  Sometimes its hard because the bias and prejudice is sooooo strong, but its still worth doing.  My own opinion is that they are often (but not always) adding a counter weight to the arguement and debate that one normally reads or sees on the usual media outlets  

Spilldenmark's picture
Spilldenmark
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Posts: 9
Re: Bubbles--Kaiser: Collapse

Al Jazeera story on the financial crisis - 1 year after Lehman Brothers (Contains Schiff)

(I hope I didn't overlook it when looking around as it's a few days old, but I didn't notice it here before)

DavidC's picture
DavidC
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Re: Daily Digest - September 14

US credit shrinks at Great Depression rate prompting fears of double dip recession

http://www.telegraph.co.uk/finance/financetopics/recession/6190818/US-credit-shrinks-at-Great-Depression-rate-prompting-fears-of-double-dip-recession.html

DavidC

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gregroberts
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Posts: 1024
Re: Daily Digest - September 14

GREENBACK GASES, GOLD AND THE COMING SHIFT

DARRYL ROBERT SCHOON

http://www.24hgold.com/english/news-gold-silver-greenback-gases-gold-and...

Cloudfire's picture
Cloudfire
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Posts: 1813
Re: Daily Digest - September 14

Wrong thread . . . sorry

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