Daily Digest

Daily Digest - September 6

Sunday, September 6, 2009, 10:03 AM
  • The Well Meaning Fool (Audio, long but worth every single minute, Repost)
  • Schiff, Defines Inflation (Video, 5:20 minutes to about 6:00 minutes)
  • Max Keiser, News, then a good interview on GS and MS
  • Wealth is Debt? (Video)
  • Mark Faber, You Need a Machine Gun (Video, 6 minutes + foreword)
  • Labor Day Unemployment Unadulterated (Chart)
  • Optimist vs. Pessimist OR Delusion vs. Realist? (Video)
  • Sunday Funny (H/T OldFriend)

Economy (Audio Video Sunday)

Happy Labor Day: The DD looks short but it is acutally longer, these audio & videos take about as much time to listen to as the usual print content that I normally post. Take care

The Well Meaning Fool (Audio, long but worth every single minute, Repost)

Schiff, Defines Inflation (Video, 5:20 minutes to about 6:00 minutes)

Max Keiser, News, then a good interview on GS and MS

Max Keiser: Representatives don't listen to us! Really? (H/T LessGovtNow)

Wealth is Debt? (Video)

If you’ve been “highly trained” then the odds are that your mind has been simply programmed full of misconceptions, half truths, bad math, lies, and marketing manipulations.

Perusing the latest reports at the St. Louis Fed I came up with this just released and very fine tax payer funded work titled, “What Happened to the U.S. Stock Market? Accounting for the Last 50 Years." Please take the time to read and fully comprehend the revolutionary understanding of the markets the authors have created...

Mark Faber (Video)

Marc Faber : "having faith in the US administration? I wonder WHO on Earth would have faith in the US administration. Certainly, not someone who thinks!"

Labor Day Unemployement Unadultered (Chart)

Chart of U.S. Unemployment

Optimist vs. Pessimist OR Delusion vs. Realist? (Video)

Sunday Funny (H/T OldFriend) 

19 Comments

britinbe's picture
britinbe
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Re: Daily Digest - September 6

Re Sunday Funny:

Oh dear, clearly Kneale is rattled enough to spend time dissing Carl.... Actually, this little spats probably good for the blogsphere, because if people go visit the websites, them there will be a few converts.........

........its funny to see

suesullivan's picture
suesullivan
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Local Realtor's office insuring buyers against job loss...

 

http://www.coloradoan.com/article/20090906/BUSINESS/909060326/The+Group+Inc.+offers++insurance++for+skittish+buyers

 

One of Larimer County's largest real estate companies launched a Job Loss Protection program Wednesday to help nudge worried consumers into the housing market.

With interest rates at near- record lows, attractive home prices and a good supply of homes on the market, there are great opportunities for those wanting to buy their first home or move up into a larger home, said Chuck McNeal, The Group's chairman.

Still, many consumers are on the fence, citing fears of job loss as the No. 1 reason they are shying away from the market, according to a survey by Realtor.com.

The program is offered through Homeowner Education and Loan Protection, or HELP, which is administered by the Rainy Day Foundation, a nonprofit organization designed to help people maintain homeownership.

It will cover up to $1,800 of the homeowners' mortgage each month for six months if they lose their job within two years of closing on the home.

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Farmer Brown
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Agriculture Questions and Data Points

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JAG
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Richard Karn: Credit & Credibility- Parts 4 & 5

I'm not sure these parts were ever posted to the site:

Richard Karn of Emerging Trends Report, Credit & Credibility Series

"The Report Of My Death Was An Exaggeration" (July 29th)

"Passing Laws, Just Because" (Aug 4th)

The opening paragraph from Part 5:

In what strikes us as the premise for an entertaining thriller, an evil foreign power unable to confront the US militarily concocts a diabolical scheme to use the US’ own legal system as the instrument of its destruction. By tangling up all aspects of the American socio-economic structure in litigation, it is gradually strangled and grinds to a halt. This law contradicts that; unelected bureaucrats exert undue influence over all aspects of everyday life; political contributions buy favorable legislation; self-regulation becomes license to steal; media sensationalizes intolerance of every sort; special interests gorge at the public trough; politicians impoverish retirees and transfer the nation’s wealth to inveterate gamblers and reprobates while promoting specious programs that indenture future generations of Americans to the service their debt. So successful is the conspiracy that no new energy source can be developed, and the cheapest, most abundant sources of electricity are abandoned in favor of the most expensive. No one speaks plainly for fear of being sued for treading on the delicate sensibilities of those purposefully over-represented. Advocates of reasoned debate on any issue are subject to ad hominem attacks by authoritarians intent on reducing all issues to the simple populist polemics of yes-no, good-bad, believer-heretic.

            …except it is not a novel: it broadly describes America today.

(edit: forgot the quote)

MarkM's picture
MarkM
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Re: Daily Digest - September 6

Thanks for the videos of our elected representatives showing their true colors.  They want absolutely NO questions asked of them, ever. The arrogance is almost unbelievable.  Well, maybe to some.

"Sit down and shut up, we will tell you what to do and when to do it".

I have to smile a little, because I believe people are starting to wake up.  Let's see what those people with our best interests in mind do to put us back into a slumber.

idoctor's picture
idoctor
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Re: Daily Digest - September 6

http://www.snopes.com/politics/soapbox/youscareme.asp

Rolling Stone: The Great American Bubble Machine

1.

2.

3.

4.

5.

Oh BOY just what the World Needs now....

http://www.cnbc.com/id/32707038

Damnthematrix's picture
Damnthematrix
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from Steve Keen's blog
Spilldenmark's picture
Spilldenmark
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Re: Daily Digest - September 6

First of all, I think the sunday funnies link takes me to a wrong page, unless there are very few funnies and they are on a different page than usually

Second, I recall a clip from some years ago about inflation, ironicly also with peter schiff, june 13th 2006 on cnbc where he debates what inflation is and how it works. I find that to be much more enlightening than the schiff-clip above

saxplayer00o1's picture
saxplayer00o1
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Re: Daily Digest - September 6

Somebody with a brain interviewed on ABC News?

Take a listen to to this guy and all the topics he covers...even about the Fed:

This is good, so please don't miss listening to this one....ok maybe

I'm just stunned that it was on ABC News.

 

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batkinso
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Re: Daily Digest - September 6

Jan Helfeld would have obtained far more of an indictment if he had been more methodical than antagonisitic with Congressman Pete Stark.  Both men behaved badly (okay, Pete Stark was worse). 

Davos's picture
Davos
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Re: Daily Digest - September 6
Spilldenmark wrote:

First of all, I think the sunday funnies link takes me to a wrong page, unless there are very few funnies and they are on a different page than usually

Second, I recall a clip from some years ago about inflation, ironicly also with peter schiff, june 13th 2006 on cnbc where he debates what inflation is and how it works. I find that to be much more enlightening than the schiff-clip above

Hello SpillDenmark:

The funny is singular and not my usual spelling/typo, just one joke, I do the DD about a day or more in advance, Nate, who I get my funnies from posts his on Sundays. Tomorrow, if you want a laugh today, I will post this on tomorrows DD...

Again thank you for this fine hat tip, you are absolutly right it is far superior than the one I posted. I truly appreciate hat tips as the greatly improve the quality of the DD. I especially appreciate them in the comment sections as I read every comment on the DD blog and usually on other pages and fid this the most conducive to my method of adding posts. Take care!!

saxplayer00o1's picture
saxplayer00o1
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Posts: 4064
Re: Daily Digest - September 6

This is about government's involvement in the mortgage market.

The 2nd paragraph from the bottom on page 3 shows how close FHA is to needing a bailout. Page 3

also shows how poorly FHA loans are performing. Hey, how about  that  massive 3 1/2 percent down payment

that they require?

http://www.washingtonpost.com/wp-dyn/content/article/2009/09/06/AR2009090602033.html?hpid=topnews

"Taxpayers could be hit with a staggering tab even if a small proportion of loans go bad. Fannie and Freddie now own or guarantee more than $5 trillion in home loans."

Davos's picture
Davos
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Re: Daily Digest - September 6

For the Daily Digest tomorrow, Labor Day or "Unemployment" Day this year I focused on employment - or lack there of.

So....here is a post that I thought was really interesting.

China to diversify out of U.S. dollars

According to an account published in the Daily Telegraph by Ambrose Evans-Pritchard, the Chinese government is quite anxious about money printing in the United States and the effect this printing could have on China’s dollar denominated reserve assets. 

For months now, the Chinese have signalled growing unease with U.S. monetary policy. And now comes the clearest signal yet that they are moving away from the dollar.  Cheng Siwei, a former vice-chairman of the Standing Committee, said point blank that the Chinese central bank was actively diversifying new reserve assets away from the U.S. dollar and into currencies like the Yen and the Euro.  He also mentioned Gold as an alternative the Chinese are exploring.

The $2 trillion in U.S. dollar reserves the Chinese already have are a sunk cost.  Going forward, the Chinese are free to do as they wish with incremental additions to reserves. To the degree that they sell dollars and buy gold, Yen or Euros, there can only be downward pressure on the U.S. dollar.

Cheng Siwei, former vice-chairman of the Standing Committee and now head of China’s green energy drive, said Beijing was dismayed by the Fed’s recourse to "credit easing".

"We hope there will be a change in monetary policy as soon as they have positive growth again," he said at the Ambrosetti Workshop, a policy gathering on Lake Como.

"If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies," he said.

China’s reserves are more than – $2 trillion, the world’s largest.

"Gold is definitely an alternative, but when we buy, the price goes up. We have to do it carefully so as not to stimulate the markets," he added.

The comments suggest that China has become the driving force in the gold market and can be counted on to buy whenever there is a price dip, putting a floor under any correction.

Mr Cheng said the Fed’s loose monetary policy was stoking an unstable asset boom in China. "If we raise interest rates, we will be flooded with hot money. We have to wait for them. If they raise, we raise.

"Credit in China is too loose. We have a bubble in the housing market and in stocks so we have to be very careful, because this could fall down."

Mr Cheng said China had learned from the West that it is a mistake for central banks to target retail price inflation and take their eye off assets.

"This is where Greenspan went wrong from 2000 to 2004," he said. "He thought everything was alright because inflation was low, but assets absorbed the liquidity."

Notice the statements about an asset bubble in China and the admission that loose U.S. monetary policy is a transmission mechanism.  Cheng is right to worry about asset prices in addition to consumer prices as the Chinese economy has a huge amount of overcapacity right now and any inflation is bound to become apparent in asset prices first.

To be sure, there are other voices in Chinese officialdom that are striking a less alarmist tone. One cannot rely on the words of one Chinese official to represent policy makers in China.  And Cheng never said the Chinese are now actively diversifying away from the U.S. dollar. Nevertheless, Chinese officials have been talking along this dollar bearish line for months now and I tend to believe their words will lead to action.

That is, at a minimum, bullish for Gold and bearish for the U.S. Dollar.

My comment: This: "If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard." jumped off the page at me. Makes me wonder if they read CM's cusip report. It also makes me wonder if they wanted to say this: "If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard." So we'll just tank it now and keep the prices of resources low.

After all, if they tank the US economy, I mean dunk it hard, drown it, and move off the USD the resources they need will be more affordable as we will be buying a LOT less.

Maybe I'm over reacting, but for the first time in 7 years I found myself reaching over my seat for my shoulder harness.

saxplayer00o1's picture
saxplayer00o1
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Re: Daily Digest - September 6

Thanks for posting the link. This came up under a Google search and has just a little more info. Notice the comments about buying gold on the dips:

http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100000821/china-bernanke-and-the-price-of-gold/

zulu's picture
zulu
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Re: Daily Digest - September 6

http://www.cnbc.com/id/32707038

Great find, idoc.  Leave it to GS et al to be on the leading edge of this murky, morally hazardous investment opportunity!

I don’t know why they don’t cover this in the article, but to truly make this a perfect investment vehicle it seems obvious that in addition to buying “life settlement” companies that buy old people’s life insurance policies, the investment banks should be acquiring “death squad” companies to kill off the old people they buy the life insurance policies from.  Of course instead of “death squad” I am sure they would have much more creative and euphemistic names such as “next birthday prevention team” or “life expectancy reduction team”....

What is also conspicuously absent from the hard-hitting analysis in this article is that not only does this plan let our bankrupt baby-boomers continue to SPEND-SPEND-SPEND! but it has the side benefit of transferring wealth from future generations (the would-be beneficiaries of said policies), through the bank accounts of the boomers and into the coffers of the Big Banks.  And as this particular type of wealth transfer is the official policy of the Obama administration (as evidenced by their financing of current spending and stimulus with my childrens' future tax dollars), this new scheme should be a big hit inside the beltway.

Now where do I sign-up...

zulu

rowmat's picture
rowmat
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Re: Daily Digest - September 6
zulu wrote:

...I don’t know why they don’t cover this in the article, but to truly make this a perfect investment vehicle it seems obvious that in addition to buying “life settlement” companies that buy old people’s life insurance policies, the investment banks should be acquiring “death squad” companies to kill off the old people they buy the life insurance policies from.  Of course instead of “death squad” I am sure they would have much more creative and euphemistic names such as “next birthday prevention team” or “life expectancy reduction team”....

What haven't you heard of the Goldman Sachs sponsored Socialised Obamacare Eugenics Program for the aged and infirmed? Surprised

fujisan's picture
fujisan
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Posts: 296
Re: Daily Digest - September 6

breakingviews: Hole poked in rating agencies' lawsuit shield - Sep. 4, 2009

Standard & Poor's and Moody's use free speech protections to deflect litigation. Now a judge has cast doubt on this defense. 

(breakingviews.com) -- Credit rating agencies have long relied on the right of free speech as protection against litigation, especially in the U.S. A hole has just been poked in this shield.

Judge Shira Scheindlin of the Southern District of New York has has cast doubt on the defense by allowing a lawsuit over a structured finance deal to go ahead. If the case succeeds, the agencies may face a flood of suits they actually have to fight.

...

zulu's picture
zulu
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Re: Daily Digest - September 6
rowmat wrote:

What haven't you heard of the Goldman Sachs sponsored Socialised Obamacare Eugenics Program for the aged and infirmed?

Well said - I guess that completes the circle, now doesn't it? Gives new meaning to the phrase "death spiral"

KBX's picture
KBX
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Re: Daily Digest - September 6

Wealth is Debt?

Although this is kind of true (wealth makes debt possible - you wouldn't find lenders, if there was no wealth to back this debt) this video reminds me of a joke: A patient is hospitalized for amputation. After the surgery the patient yells at the surgeon : " doctor, doctor - this was the wrong leg!". The surgeon replies: " Please calm down, who has the doctors degree in this room?  me or you?"

 

 

 

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