Credit growth was mostly driven by mortgage lending. Mortgages were generously provided by banks, but increasingly to subprime borrowers (subprime referring to their poor credit). Yet these subprime borrowers didn’t pay higher interest rates on their mortgages the moment Alan Greenspan began hiking rates. But as soon as their (promotional) teaser rates resetted, they started “feeling the Alan.” Delinquency rates went through the roof and the U.S. economy into recession.
“It may be they feel this is unnecessary or it may be they don’t particularly want to commit themselves in writing to some of those high principles but I would say that’s something we have every right to expect them to commit in writing.
“The reason we started this is the view that some politicians think they can get away with any lies they like.”
Although there is broad acceptance that Britain needs breathing space to appoint a new prime minister and establish what kind of future deal it hopes for, most members want Brexit under way quickly to contain the risk of Eurosceptic contagion, limit economic instability and allow the EU to move forward with new initiatives on security, growth and jobs.
The Shadow Doctors (jdargis)
In the past five years, the Syrian government has assassinated, bombed, and tortured to death almost seven hundred medical personnel, according to Physicians for Human Rights, an organization that documents attacks on medical care in war zones. (Non-state actors, including isis, have killed twenty-seven.) Recent headlines announced the death of the last pediatrician in Aleppo, the last cardiologist in Hama. A United Nations commission concluded that “government forces deliberately target medical personnel to gain military advantage,” denying treatment to wounded fighters and civilians “as a matter of policy.”
Sovereign Debt – What Could Go Wrong? (GE Christenson)
Given that our short-term markets are currently managed by central banks, High-Frequency-Traders, and governments, I understand that markets, technical analysis, and cycles are distorted and manipulated, but the T-Bond highs have been regular and long-term. A cyclic high in T-Bonds is due in a few months. We’ll see….
The report was based on a survey of integrated public and listed national companies as well as independent E&Ps and warned that things are not looking particularly good. The rate of well depletion is 7-9 percent annually for both traditional and shale wells, and spending at many of the companies surveyed has been cut to below the necessary minimum that would ensure that this depletion is being offset, England noted.
Let’s start with Canada and the United States. Canada is a resources economy: It has vast reserves of stuff people like to use, but not that many people. Thanks to its network of lakes, rivers, streams, and waterfalls, Canada already gets 59 percent of its power from hydroelectric plants. And because Canada’s eastern provinces, where much of the hydro-capacity resides, border U.S. states with large populations, the country has long exported electricity south. In 2014, Canada exported about 10 percent of its electricity production—an amount equal to 1.6 percent of U.S. consumption—across the border. (In the Pacific Northwest, meanwhile, the U.S. sends some power to population centers in British Columbia.)
So here’s the damage in each scenario. In a pedal-to-the-metal no-policy world, we’re looking at more than 4 degrees Celsius above pre-industrial levels by the year 2100. Current policies (also extrapolated into the future) reduce that number to around 3.2 degrees Celsius. The Paris Agreement reduces it further to about 2.5-3.1 degrees Celsius. That’s certainly quite preferable to >4 degrees Celsius, but it’s also much higher than the 2 degrees Celsius limit that the Paris agreement was supposed to implement.
Gold & Silver
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