Shock in Cyprus as savers face bailout levy (westcoastjan)
While Cyprus may be one of the eurozone's tiniest economies – its third-smallest – there could be serious repercussions for other financially over-stretched economies, such as those of Spain and Italy, BBC Business editor Robert Peston writes.
The point of the levy is to warn lenders to banks that they should take care where they place their funds, and avoid banks that overstretch themselves – as Cypriot banks did, he adds.
Why Cyprus' Rescue Matters To Us (westcoastjan)
Partly because there is a widespread view that if caveat emptor should apply to well-heeled lenders to banks, then the lesson has to be taught some time.
And partly because of the hope and expectation that sufficient confidence has returned to economies with weakened banks, especially those of Spain and Italy, that those with big deposits in such banks will not immediately ask for their money back (even if the Cypriot levy could one day turn out to be a very painful precedent for them).
But it doesn't stop there: a partial "bail-in" of junior bondholders is also possible, as for the first time ever the entire liability structure of a European bank – even if it is a Cypriot bank – is open season for impairments. The logical question: why here, and why now? And what happens when the Cypriot bank run that has taken the country by storm this morning spreads everywhere else, now that the scab over Europe's biggest festering wound is torn throughout the periphery as all the other PIIGS realize they too are expendable on the altar of mollifying voters and investors in the other countries that make up Europe's disunion.
The move — a first in the three-year-old European financial crisis — raised questions about whether bank runs could be set off elsewhere in the euro zone. Jeroen Dijsselbloem, the president of the group of euro area ministers, declined early Saturday to rule out taxes on depositors in countries beyond Cyprus, although he said such a measure was not currently being considered.
In this episode of the Keiser Report, Max Keiser and Stacy Herbert ask why China fears currency war. They also look at Johnson & Johnson's big loss on Venezuela's currency devaluation and what this means in a currency war world where major devaluations can happen at any moment. In the second half of the show, Max Keiser talks to Jim Rickards, author of Currency Wars, about which nations are winning the war.
I think this is a bigger fine than Goldman paid for Abacus. Of course SAC is not as systemically important as Goldman.
In 2002, Kinder Morgan threaded a 1,300-metre section of the pipeline under the road after seismic tests revealed soil along the river bank, where the pipeline had earlier been moved to accommodate a Home Depot, was subject to “liquefaction,” which made it unstable.
North Dakota's Oil Boom (jdargis)
Underlying northwestern North Dakota is a massive rock formation, referred to as the Bakken shale, which holds an estimated 18 billion barrels of crude oil. When this resource was first discovered in 1951, recovering it was financially unfeasible because the oil was embedded in the stone. Then, around 2008, everything changed, and North Dakota boomed.
The Facts On Fracking (jdargis)
There is no doubt that natural gas extraction does sometimes have negative consequences for the local environment in which it takes place, as does all fossil fuel extraction. And because fracking allows us to put a previously inaccessible reservoir of carbon from beneath our feet into the atmosphere, it also contributes to global climate change.
The Dangers Of Fracking (jdargis)
Hydraulic fracturing, or “fracking”, is the process of drilling and injecting fluid into the ground at a high pressure in order to fracture shale rocks to release natural gas inside.
Obama Will Use Nixon-Era Law to Fight Climate Change (Arthur Robey)
“It’s got us very freaked out,” said Ross Eisenberg, vice president of the National Association of Manufacturers, a Washington-based group that represents 11,000 companies such as Exxon Mobil Corp. (XOM) and Southern Co. (SO) The standards, which constitute guidance for agencies and not new regulations, are set to be issued in the coming weeks, according to lawyers briefed by administration officials.
Great Lakes Experiencing 'New Stresses' (westcoastjan)
Eighteen months ago, the International Joint Commission flagged "chemicals of emerging concern” as a risk to humans and ecosystems.
"The other factor is climate change," Haffner said.
Gold & Silver
Provided daily by the Peak Prosperity Gold & Silver Group
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