- Ireland Government Crumbles As Green Party Pulls Out Of Ruling Coalition
- Mauldin: The Unsustainable Meets the Irresistible
- Conserving Doomed Systems (Or, Why We’re Staying On The Titanic)
- Silver Is The New Gold
- U.S. Jobs Outlook Rises to Decade High, Survey Says
- Heating Oil Rises on Cold Weather Forecast for U.S. Northeast
- Citi Warrant Sale On Tap for Treasury
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It has been a while since we had one of those “before Asia opens” kind of Sundays. Today just may be one. BBC has just reported that the Irish Green party has pulled out of the ruling coalition with Fianna Fail which is “expected to bring forward the general election from 11 March.” In other words suddenly the entire Irish “rescue”, taken for granted for over a month, will have to be reexamined, once the new ruling party, which will certainly be from the current opposition reevaluates the terms. Elections are now expected to come some time in mid-February. Look for peripheral bond spreads to go whooosh tomorrow.
A few more thoughts on state and local spending. First, Congress needs to go ahead and authorize a bill allowing states to file for bankruptcy. At the very least, this send s very clear message to the states that the federal government will not come to their aid. It is not fair to ask states that have done what they need to do to keep their fiscal houses in order, to support states that have overspent, typically by trying to fund their pensions and run other well-intentioned but underfunded programs.
We have a choice: discomfort or collapse. The voices in favor of discomfort (i.e. sacrifice of something inessential to help others with less) are so few and the voices of critique and naysaying are so cacophanous and loud they drown out the few. Look, if everyone who “earned” their $1,100 monthly Social Security benefit takes a 50% cut to “save the system,” what does that mean? To me, it means the household drawing $6,000 a month in other pensions receives a 7.7% cut– a trivial sum that won’t damage the prospects of the household in the slightest. ($6,000 + $1,100 = $7,100 – $550 = $6,550, and $550 / $7,100 = .077)
Silver Is The New Gold (doug)
Suffice to say, most people in the investment world have been conditioned to believe that a silver shortage is impossible, in addition to being fixated on gold as the only insurance you need for your portfolio. This is the power of recent history, of the language that is used to describe silver (its industrial), and a view that is still encouraged by some gold dealers. While I haven’t done a poll, I would bet many in the gold industry assume that a genuine silver shortage for industrial purposes is highly unlikely. This perception is largely reinforced by the major world market maker in the white metal, the COMEX division of the New York Mercantile Exchange.
The report adds to evidence, including a drop in claims for unemployment benefits, showing the job market is strengthening in early 2011. Payrolls rose by 103,000 workers in December, less than the median forecast of economists surveyed by Bloomberg News, and the unemployment rate fell to 9.4 percent from 9.8 percent a month earlier, according to Labor Department figures released Jan. 7. Economists surveyed by Bloomberg this month forecast unemployment will average 9.3 percent this year.
Heating oil gained for the fifth time in six days as below- normal temperatures were projected in the U.S. Northeast Jan. 29 through Feb. 6, according to the National Weather Service’s Climate Prediction Center. The Northeast is the largest user of heating oil. “It’s cold and that’s the most logical explanation why heating oil is so strong and is probably providing the support that the market has today,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut.
The Treasury announced on Monday that it plans to sell 465 million warrants to purchase Citi shares, some with an exercise price of $17.85, which expire on Oct. 28, 2018, and others with an exercise price of $10.61, which expire on Dec. 31, 2018. The offerings will take place in modified Dutch auctions on Tuesday.
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