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    Daily Digest 11/6 – Pending Home Sales Decline, Citi Slapped, Renewable Energy Funding

    by DailyDigest

    Saturday, November 6, 2010, 3:00 PM

  • Volcker: Fed Bond Plan Won’t Do Much to Boost Econ
  • Pending Home Sales Index declines 1.8% in September
  • Citi Slapped with Subprime RMBS Lawsuit
  • Federally Funded Friday
  • The Argument Against Hyperinflation With Erik Townsend
  • U.S. Weighs Funding for Renewable Energy Projects
  • The Impact of Solar Feed-In Tariffs in Germany

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Economy

Volcker: Fed Bond Plan Won’t Do Much to Boost Econ



The Fed announced Wednesday that it would purchase $600 billion in Treasurys, aiming to lower long-term interest rates in an effort to spur spending and ultimately lower the U.S. unemployment rate, currently at 9.6 percent. The move comes on the heels of previous purchases of $1.7 trillion in mortgage and Treasury bonds.

Pending Home Sales Index declines 1.8% in September



The Pending Home Sales Index,* a forward-looking indicator, slipped 1.8 percent to 80.9 based on contracts signed in September from an upwardly revised 82.4 in August. … The data reflects contracts and not closings, which normally occur with a lag time of one or two months.

Citi Slapped with Subprime RMBS Lawsuit



No sooner had rumblings over Citigroup’s “toxic mortgage pipeline” began — than the bank becomes the next in line to be embroiled in a mortgage-related lawsuit.

Federally Funded Friday



Today the Fed is scared to death that the boys and girls and robots on Wall Street are going to have a hissy fit. And therefore these programs, one after another, are simply designed to somehow pacify the stock market, and hoping to keep the stock indexes going up, and that somehow that will fool the people into thinking they are wealthier and they will spend money

The Argument Against Hyperinflation With Erik Townsend



Many of us know the proponents of hyperinflation; Marc Faber, Gonzalo Lira, the National Inflation Association, and maybe even Peter Schiff falls into this category. When we look to countries that have experienced hyperinflation in modern times we can see direct parallels between their monetary policies and that of the US’s in the past few years and we can draw a quick conclusion that we will experience hyperinflation as well.

In this interview with Erik Townsend, entrepreneur and private investor, Erik argues that this conclusion is too simplistic and does not take into account the ‘Five Fundamental’ differences between the US Dollar and those currencies mentioned as examples of hyperinflation. 





Energy

U.S. Weighs Funding for Renewable Energy Projects



President Obama’s top advisers recommended cutting off funding for a federal loan-guarantee program meant to spur the construction of wind and solar farms and other alternative energy projects, saying taxpayer dollars might be better spent elsewhere.

But the advisers, including Mr. Obama’s outgoing National Economic Council Director Lawrence Summers, energy policy czar Carol Browner and Ron Klain, chief of staff to Vice President Joe Biden, warned Mr. Obama that pulling money from the program would risk antagonizing powerful allies in Congress, and would “signal the failure of a Recovery Act program that has been featured prominently by the administration,” according to an Oct. 25 memorandum viewed by The Wall Street Journal.

The Impact of Solar Feed-In Tariffs in Germany



German solar PV in 2009 produced only 1.1% of total German electricity, but issues of grid stability are already being raised, as is the issue of excessive cost. Through the FIT, the electrical system paid an average $0.54 cents per kilowatt hour for the electrical power for the electricity it purchased.

The cost of wholesale power has varied over the years, but has been much lower than this. In 2009, the cost of wholesale electricity averaged $0.075 at peak rates, or $0.058 at base load rates. Even this cost comparison may give too much credit to solar. The only real savings from having the PV systems is the savings in fuel, since the generating units used for peaking would still need to be in place, and employees would still be needed to operate and maintain them. The cost of fuel would have been even lower than base load rates.

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the “3 Es.”

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