Daily Digest

Daily Digest - September 3

Thursday, September 3, 2009, 11:00 AM
  • Michael Hudson On The Financial Crisis (Video)
  • The Mish and Peter show with Max (Video)
  • Macro Hedge Funds Betting Against Recovery Story
  • Politicians Play Solitaire During Budget Debate
  • Fed Will Now Monetize The Most Recently Issued Agencies
  • Couldn't Have Said It Better
  • Merkel, Sarkozy Demand End To Banker “Blackmail”
  • Paul Mylchreest – Thunder Road Report...
  • "Land of the Free": Cops Jump on Swine-Flu Power
  • Makers of Vaccine Refuse...(Video)
  • Budget Crisis: City Takes Out $275M Loan
  • David Walker (Video, H/T GregRoberts)

Economy

Michael Hudson On The Financial Crisis (Video)

The Mish and Peter show with Max (Video)

Macro Hedge Funds Betting Against Recovery Story

“If we have a recovery at all, it isn’t sustainable,” Kevin Harrington, managing director at Clarium, said in an interview at the firm’s New York offices. “This is more likely a ski-jump recession, with short-term stimulus creating a bump that will ultimately lead to a more precipitous decline later.”

Politicians Play Solitaire During Budget Debate

Senate Approves Budget

Fed Will Now Monetize The Most Recently Issued Agencies

Zero Hedge has a simpler one: monetization (and after all the Fed is already doing this with Treasuries; did anyone think that Agencies, which as TIC showed recently, are being shunned by all CBs are any different - it was only a matter of time before the Fed tipped its hand in "advising" foreign purchasers that it will now backstop virtually every piece of US-issued paper, even those from the dreaded GSEs).

And lest we forget, the Fed is already facilitating the rotation of MBS and Agencies by foreign CBs into Treasuries. At this rate a $5 trillion Federal Reserve balance sheet by this time next year is looking conservative.

Couldn't Have Said It Better

August chain-store sales ended up being a disappointment, according to ICSC-Goldman's same-store tally which fell 0.5 percent in the Aug. 29 week for a minus 0.7 percent year-on-year rate. The report down plays the impact of back-to-school calendar shifts and stresses the overall trend which it said is not improving. The report isn't making a call for month-to-month sales. Redbook is up next.

Merkel, Sarkozy Demand End To Banker “Blackmail”

“No bank must grow to a size that puts it in a position in which it can blackmail governments.”

- German Chancellor Angela Merkel (August 31st, Bloomberg)

“These excesses cannot be allowed to be repeated as if nothing has happened.”

- French President Nicolas Sarkozy (August 31st, Reuters)

Paul Mylchreest – Thunder Road Report...

Another worthy report by Paul, I lean something from a different perspective every time I read his read report, enjoy...

"Land of the Free": Cops Jump On Swine-Flu Power

state legislature would allow authorities to forcefully quarantine citizens in the event of a health emergency, compel health providers to vaccinate citizens, authorize forceful entry into private dwellings and destruction of citizen property and impose fines on citizens for noncompliance.

Makers of Vaccine Refuse...(Video)

Budget Crisis: City Takes Out $275M Loan

Pensions are calculated by multiplying 2 to 2.25 percent (depending on their position) of an employee's average salary at retirement by their years of service.

The average yearly pension for city workers is $17,350 – not exactly a golden parachute.

"We've fought hard over the years for that," said Herman "Pete" Matthews, President of AFSCME District Council 33 – the city's blue-collar union. "Our pension benefits are not out of line. It's something that we bargain for; it's something our members deserve."

The city's pension fund, however, is woefully underfunded. To pay all its obligations, the city should have about $8.4 billion in the fund. Right now, it only has about $4.6 billion – 55 percent of what is needed.

David Walker (Video, H/T GregRoberts)

30 Comments

Davos's picture
Davos
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Re: Dailt Digest - September 3

I posted it but I do NOT believe in everything said in the Keiser video. These are all people I have a LOT of respect for.

Everyone knows my thougths so I'll leave it at that.

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VeganDB12
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Re: Daily Digest - September 3

This swine flu legislation is in opposition to the constution in so many ways.
Ironically, Boston is also home to one of the newest high level biocontainment facilities so there may be other opportunities besides swine flu to implement this.
http://www.masshightech.com/stories/2009/01/26/weekly8-BU-biocontainment...

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Re: Daily Digest - September 3

Sorry, duplicate
Denise

Davos's picture
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Re: Daily Digest - September 3
VeganD wrote:

This swine flu legislation is in opposition to the constution in so many ways. Ironically, Boston is also home to one of the newest high level biocontainment facilities so there may be other opportunities besides swine flu to implement this. http://www.masshightech.com/stories/2009/01/26/weekly8-BU-biocontainment...

They might as well burn "that piece of paper" (I think that'w what Bush II called it, because they sure as heck don't follow a darn thing in it.

For any of us who may wish to wallow in reality, maybe all 100,000 of us, we could rename the Unites States of America to the United States of Oxymorons.

Our freedom is out the window thanks to all these bogus bills like the "Patriot" Act and this most recent pathetic waste of paper. Giving any state or federal entity reign over any catastrophe is merely going to be a pathetic re-enactment of Katrina. These people could have stopped the spread in Mexico. They can't or won't even close schools now. Brilliant! Like the ice trucks or the school buses in New Orleans.

Shear genius.   

"Our" country which really belongs to the oligarchs, many of which reside on other countries, who can buy and pay for politicians to allow these parasites to overeat and kill the host.

The reality is that everything named means the opposite. The "Patriot" Act isn't an act patriotism. The "Federal" "Reserve" is a private bank that creates wealth and via debt and ill morally burdens even our children for the tab. The "Social" "Security" "Trust" "Fund" isn't a fund that was trusted to the trustworthy and was squandered on a bread and circus empire. "Medicare" won't be able to care for anyone. "Medicaide" won't be able to aide. "TARP" was a cash give away that didn't relieve the banks of squat. "PPIP" isn't private, and it isn't an investment. Our "Federal" Debt isn't 11.6 trillion, it is closer to 80 trillion and it isn't federal, we are left the tab and the money they are printing is destroying the dollar.

I could go on for days. But why? What good would it do?

 

Davos's picture
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Re: Daily Digest - September 3

Senate Approves Budget

Hard to believe we are where we are today. Rome burns and these people play games.

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Re: Daily Digest - September 3
Davos wrote:

Senate Approves Budget

Hard to believe we are where we are today. Rome burns and these people play games.

No Davos, you are not seeing the beauty here.  As I said in a different post, these people are just so good at what they do, they can multi-task all day long.  These highly skilled folk can make intelligent decisions regarding the budget while also checking baseball stats and playing solitare.  I'm sure there are plenty of people in that session that are perfecting their design for a fusion engine or hydrogen powered lawnmower.  They are so talented, they can even take cell phone calls while listening with all their attention to a constituents question.

I know I feel lucky to have such people working on my behalf.

</sarcasm>

The sad thing is that we will probably re-elect these morons.

Tim

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saxplayer00o1
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Re: Daily Digest - September 3
 Just a few news items while looking at headlines.
 

Sept. 3 (Bloomberg) -- Treasuries fell, with 10-year notes snapping a four-day advance, as the U.S. said it would sell $70 billion in 3-, 10- and 30-year debt next week and investors prepared for tomorrow’s jobs report.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aFxcEM0bLBxo

 

 

U.S. junk bond default rate rises to 10.2 pct -S&P

 

"The default rate is expected to rise to 13.9 percent by July 2010 and could reach as high as 18 percent if economic conditions are worse than expected, S&P said in a statement."

"Default rates have surged from less than 1 percent in 2007"

http://www.reuters.com/article/marketsNews/idUSN039597920090903

 

CDO tricks and the  creation of something from nothing

http://www.bloomberg.com/apps/news?pid=20601085&sid=au6Z0K3F1Wbg

 

Swine Flu Hurting Pork Producers

http://www.kulr8.com/news/local/56776017.html

 

 

Morgan Stanley, Moody's, S&P must defend fraud claims

http://www.reuters.com/article/ousiv/idUSTRE5817EK20090902

 

Back-to-school sales flunk

http://money.cnn.com/2009/09/03/news/economy/august_same_store_retail_sales/?postversion=2009090310

 

Detroit Takeover Viewed As Last Resort:

http://www.detnews.com/article/20090903/METRO01/909030404/1409/METRO/Detroit-takeover-viewed-as-last-resort

 

Unemployment fund deficit could pass $2 billion(Missouri)

http://sbj.net/main.asp?SectionID=18&SubSectionID=23&ArticleID=85325&TM=44952.45

 

Pension fund increase could lead to local tax hikes (New York..look at the percentage

that it will go up and also see the losses at the fund)

http://www.bizjournals.com/albany/stories/2009/08/31/daily43.html

 

 

Bankruptcy filings rise sharply nationwide, jumping 35 pct

http://www.journalrecord.com/article.cfm?recid=102133

  

UPDATE 1-Alabama's Jefferson County seeks bridge loan

http://www.reuters.com/article/bondsNews/idUSN02982720090902

 

 

Japan's New First Lady Says She Flew In UFO

http://www.time.com/time/world/article/0,8599,1920190,00.html

 

 

the 23-campus California State University system faces a $564 million shortfall

http://www.sacramentopress.com/headline/13160/Budget_priorities_hit_home_at_Sac_State

 

 

Total debt is 600% of GDP? (bottom of page 5)

http://economicedge.blogspot.com/2009/09/lack-of-confidence-meet-capital-flight.html

 

San Diego's pension = $2 billion of debt:

http://www.voiceofsandiego.org/articles/2009/09/01/opinion/fiveyearforecast083109.txt

 

Davos's picture
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Re: Daily Digest - September 3
Tim_P wrote:

morons

I'm glad you used that word. It is my favorite selection because I haven't the creativity, the patience or the spelling ability to write like MachineHead. But, in truth, that one word says it all about why we are where we are. Thanks!

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Insider Selling/Buying Ratio Doubles to 62!

Insider Selling/Buying Ratio Doubles to 61.8x

http://www.zerohedge.com/article/insider-sellingbuying-ratio-doubles-618x

 

TrimTabs earlier disclosed that the ratio of insider selling to buying had averaged about 31x for August, with $6.3 billion of insider sales matched by only $210 million on insider buys. Insiders apparently decided to exit August with a bang, with the last week of insider transactions doubling the sell-to-buy ratio to 61.8x! Over half a billion in stock was sold, while a whopping $8 million was purchased.

If there is any doubt as to which way insiders were leaning during this "market rally," this data should seal that particular coffin.

JAG's picture
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Insider Selling 62 to 1, Holy Cow!

Farmer Brown,

I think you should take the name "Holy Cow!" with all the surprising stuff that you dig up.  Wasn't 30 to 1 the record since 2004?

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Re: Insider Selling 62 to 1, Holy Cow!

It seems like 30 was the all time record, but I do not have verification on that. 

HolyCowNews.com 

Your ecofriendly source for stinky news.

JAG's picture
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Re: Daily Digest - September 3

Davos,

Thanks for that Schiff vs Mish with Max youtube video. Once again, your blogosphere skills have uncovered something that I would have most certainly missed . Thank you Sir Davos!

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Re: Daily Digest - September 3

This swine flu vaccine is a big deal....especially since i am in the USAF. I DO NOT plan on taking this vaccine, yet I know it will deffinitly, without a doubt, be forced upon me. There will be punishments, and threats when I don't take this either.

It should make for some interesting fights and battles.........potentially I need to plan for another form of income (which is what i planned on anyway, but not until my contract was up....)

The ENTIRE (the looting, robbing, health stuff...everything) situation is sickening. I talk so openly at work about our economic situation, and the constitution, and rights I am surprised I havent been in trouble yet.....

 

ARG!!!

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Re: Daily Digest - September 3

is that video of the politicans real?!?!?

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Re: Daily Digest - September 3

+JMJ+

 

Another interesting article on the stock market's rise today:

http://market-ticker.denninger.net/archives/1403-To-The-Regulators-STOP-THIS-NOW!.html

C=Citicorp, FNM=Fannie Mae, BAC=BankAmerica

 

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Re: Daily Digest - September 3

Dan Pink on the surprising science of motivation | Video on TED.com

Career analyst Dan Pink examines the puzzle of motivation, starting with a fact that social scientists know but most managers don't: Traditional rewards aren't always as effective as we think. Listen for illuminating stories -- and maybe, a way forward.

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Re: Daily Digest - September 3

Tim said:

"I know I feel lucky to have such people working on my behalf.

</sarcasm>

The sad thing is that we will probably re-elect these morons"

Spot on Tim, however as outlined in the brilliant recent Dr. Hudsont posts by Davos, perhaps it matters not who you vote for, the influence is with the immortals.  the immortals are the corporates.  all corporates.  Immortal corporations have the rights of humans, they live forever, have no accountability and live forever. 

Perhaps the combination of a fiat money, unbridled fiscal and military US aggression [at the hands of said immortals], Martenson 'three E's' and corporate law allowing rich and influential corporations to undercut all our democracies has lead us to the place we now find ourselves... on the brink of slavery/war/famine/death.

Please remember that whilst we find ourselves in this place at this time, other people in 'poorer'  countries found themselves in the same place decades ago, at the hands of the same forces... they are now dead... and we did NOTHING.

what to do now?  there really is only one option.  the aggressors involved ARE the system.  the system needs to change and it isn’t going to change itself.

revolution. 

plain and simple.  and if you listen to the likes of George Monbiot, Chris Martenson, Prof. Bartlett, it better be very bloody soon.

Straight, Brisbane.

 

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Marc Faber on the dollar & equities and some other good stuff

 

 

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Re: Daily Digest - September 3

Hello Jag: Here is the link to Keiser's website where I found that video. Which I don't agree with but posted it because I could be wrong. Take care

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Re: Daily Digest - September 3

Basically, I'm wary of a deflationary down wave now with a possible market retest, failure drama, etc., but I thought this was a good cold-water-in-the-face counter view of going straight to inflation with the market never really looking back:

 http://drachadvisors.com/Page470.htm

I don't necessarily agree with Drach's analysis, but it reminded me that, as in the '70's, you can have a roller coaster of whole separate views and trends that surprisingly hold sway for periods of time, and are then upsettingly followed by other, opposite sweeping trends.   It reminds me that completely other things can happen while you're waiting for what you're expecting to happen to happen.  For the inflationary, up-market future he's talking about to get very far, it seems that the US funding/credit crisis would have to take awhile to evolve.

great posts, by the way, Davos - I do investment work and often enjoy checking out wassup in your daily digest...

Davos's picture
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Re: Daily Digest - September 3
kelvinator wrote:

Basically, I'm wary of a deflationary down wave now with a possible market retest, failure drama, etc., but I thought this was a good cold-water-in-the-face counter view of going straight to inflation with the market never really looking back:

 http://drachadvisors.com/Page470.htm

I don't necessarily agree with Drach's analysis, but it reminded me that, as in the '70's, you can have a roller coaster of whole separate views and trends that surprisingly hold sway for periods of time, and are then upsettingly followed by other, opposite sweeping trends.   It reminds me that completely other things can happen while you're waiting for what you're expecting to happen to happen.  For the inflationary, up-market future he's talking about to get very far, it seems that the US funding/credit crisis would have to take awhile to evolve.

great posts, by the way, Davos - I do investment work and often enjoy checking out wassup in your daily digest...

Hello Kelvinator: Thanks for the link I'll take a read. I'm old school in this, I think inflation pertains to one thing and one thing only, the money supply which directly effects the store of value the dollar has or hasn't. Take care

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Re: Daily Digest - September 3

Great TED video fujisan. Thanks for the post.

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It’s Deflation Alright, of the Currency.

OK Davos,

Because you were so kind to include a pro-deflation post in your Daily Digest, I will offer you a pro-inflationary post in return:

Snowball in Summer by Eric Janszen

It’s deflation alright, of the currency.

Thats such a great line!

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Re: It’s Deflation Alright, of the Currency.

I found that the 60 Minutes episode on David Walker was done in March of 2007.  I can't imigian what he must be thinking now.  He's probably given up on saving the republic.

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Re: Daily Digest - September 3

Fed Balance Sheet update:

http://www.calculatedriskblog.com/2009/09/federal-reserve-assets-and-mor...

 

FHA to follow in footsteps of Fannie, Freddie?:

http://www.calculatedriskblog.com/2009/09/fha-next-bailout.html

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Re: Daily Digest - September 3-the Constitution

Davos

If we don't speak up who will? 

As much as I hate to admit it, it took me weeks to understand that this Swine Flu legislation was just like the Patriot Act.  I agree with everything you said here Davos but if you and others had not taken a passionate stance on this very site some might not have seen the evil within (sorry to use such a strong word but that is how I see it). However, you have no obligation to exhaust yourself in the process.  Add to the list AETA which lists every organization addressing problems in factory farming http://www.noaeta.org/ as possible terrorrism if you interfere with the corporations profits. Sorry for getting political but this is obviously near and dear to my heart. It has gotten to the point where I am afraid to say (peacefully and publicly) what I believe because I don't want to be blacklisted by the Feds.  How crazy is that?

So thanks guys. Seriously. And I apologize for misspelling Constitution.  I still take it seriously even though moronic power mongers do not. 

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Re: Daily Digest - September 3-the Constitution

Hello VeganD:

Your right, I'm just a bit burnt out by it all. IMHO the real terrorist are the 532 (as MachineHead would say) KongressKlowns. I exclude Ron Paul and Alan Graysen and Sherman.

Never mind misspelling, I can't spell cat and I myself don't judge intelligence by spelling. I know some people who can spell yet I wouldn't trust them to have enough common sensse to look both ways before crossing a street. Take care.

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Re: Daily Digest - September 3

I've heard a number of people tell me that Ron Paul and Dennis Kucinich are "the only" members of Congress that have not "sold out." I'd agree with you, Davos, in adding Grayson and Sherman, and I'd even consider Marcy Kaptur perhaps. Hopefully soon Rand Paul, Peter Schiff, and Adam Kokesh can join the ranks of the small group of statesmen that America has.

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Re: Daily Digest - September 3

Yes, that picture of the politicians playing solitaire is real. And it's not Rome burning, it's CT burning! It took them 2 extra months to pass a budget, and as happens every year, the final deal is always between the governor and the top 3 or 4 leaders of the legislature. They raised taxes on the wealthy, who will now probably change domicile to a lower tax state like Florida, and cost us even more money in taxes. I think CT Tax Freedom Day is next week, we have to work 8+ months of the year to support government. And what will happen next year when the Obama stimulus money is not there to support the increase in government spending this year? I can only imagine.

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Re: Daily Digest - September 3
joemanc wrote:

I think CT Tax Freedom Day is next week, we have to work 8+ months of the year to support government.

I think CT Tax Freedom Day is next week, we have to work 8+ months of the year to support [COMPUTER PLAYING CARD GAMING "REPRESENATAIVES"] government.

Should send them to that new casino and tell them to bet their paychecks. Any proceeds could be used to pay down the debt.

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