Daily Digest - September 29
- Jim Quinn: Founding Fathers Of Our New Country
- Hotel RevPAR off 18.3 Percent
- U.S. Ratings Fraud Continues
- Commentary: We Shouldn't Have Homeless Children in America
- Saddled with Debt
- En Down Ments (Chart)
- Ludwig von Mises Institute (Video, H/T iDoctor)
- The Economic Crisis and How to Deal with It (Video, H/T iDoctor)
- Ferguson On US Deficit - Bloomberg (H/T iDoctor)
“A system of capitalism presumes sound money, not fiat money manipulated by a central bank. Capitalism cherishes voluntary contracts and interest rates that are determined by savings, not credit creation by a central bank.” – Ron Paul
We are now into the business travel season, and as expected, RevPAR is off sharply from 2008.
From HotelNewsNow.com: Oahu Island occupancy increases in STR weekly numbers
Overall the U.S. industry’s occupancy fell 8.6 percent to end the week at 59.6 percent. Average daily rate dropped 10.5 percent to finish the week at US$98.34. Revenue per available room for the week decreased 18.3 percent to finish at US$58.57.
This is only one of the outrageous aspects of this obvious scam. Ratings agencies are paid by the sellers of these products. Thus, the ratings agencies don't even pretend to independently evaluate these products (which, of course, is the primary function of these companies). The companies selling these products have to explain to the ratings agency how they should value them. If a particular ratings agency doesn't supply the appropriate “rubber-stamp” for the toxic security in question, then they don't get any future business.
It is a scam which is openly fraudulent, yet nothing has been done. Ratings agencies are still being paid by the sellers of these fraudulent securities. They still haven't even hired enough staff to evaluate the products they are “rating”. And government “regulators” still turn a blind-eye to this institutionalized fraud.
The effects of homelessness on children are crippling.
Children who are homeless are in bad health twice as often as other children, and four times as often as children with a family annual income of more than $35,000. They are four times as likely to have asthma, and they go hungry twice as often as other children.
Homeless children have delayed development at a rate four times the national average. More than one-fifth of homeless children between 3 and 6 years have emotional problems that require professional attention.
Ignoring the massive spike in government related debt (Federal, State, AND Local) for the time being and focusing instead on household liabilities as a percent of the national income, we see mortgage debt is now at 70% of GDP (more than double the level seen in the 1980's and 50% more than that seen at the beginning of this decade) and consumer debt is now at 18% of GDP.
The importance of all this is of course that all that debt that has been added over the years has been a huge contributor to that GDP. The fear is that the debt has just pulled a lot of consumption forward rather than infrastructure or other long term investments that will provide future growth opportunities.
Ludwig von Mises Institute (Video, H/T iDoctor)
The Economic Crisis and How to Deal with It (Video, H/T iDoctor)
"WOW!! watch at (starts) 1:15:00 where Nail Ferguson starts speaking the truth that no one wants to hear & they cut him off...."
Ferguson On US Deficit - Bloomberg (H/T iDoctor)