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    Daily Digest – July 9

    by Davos

    Thursday, July 9, 2009, 4:00 PM

  • Wall Street Journal Article Quotes Dr. Chris Martenson
  • Joe Saluzzi (Video, 3:40 Fictitious Trading, Program Trades, 8:20 the M word, possible repost, H/T DavidC)
  • a.) Inflation b.) Deflation c.) Both (Whitepaper, I wouldn’t miss pages 7 on)
  • Barrons Editor ‘It’s a depression’ (Video)
  • Samuelson on Greenspan
  • GOLD AND ECONOMIC FREEDOM (Repost)
  • Job Losses. Measuring the Velocity of Job Cuts in the Current Recession
  • DJIA Chart from Biiwii.com
  • Demand for Treasury securities is still high (Video)
  • Obama Adviser Says U.S. Should Mull Second Stimulus
  • The Booming Repo Business
  • Sergio Posts Bond As Toxic Code Percolates In Cyberspace And Allows "Market Manipulation"
  • Montreal has Bixi and a Great Bike Lane System
  • Bloomberg – Joe Saluzzi, (H/T DavidC, Video)
  • 33.8 Million
  • Madoff California Style
  • Madoff Goldman Style
  • Stimulus Our Tax Dollars Bacame a Band Aid for a Gaping Wound
  • Art Cashin Trader Talk, Stimulus misused, like an empty fire extinguisher (Video)
  • Gold investors treading water? (Video, David Morgan on the Street!)

Economy

Wall Street Journal Article Quotes Dr. Chris Martenson

“Owning bullion,” says gold investor Chris Martenson, 46, a scientist from Montague, Mass., “is buying insurance against the unknown.”


 

The truest gold buffs, though, want nothing to do with ETFs or mining stocks. Mr. Martenson, who runs an investing Web site, dismisses them as creatures beholden to untrustworthy managements and financiers. “I’ve lost faith in how Wall Street does business,” says Mr. Martenson, who keeps more than half his portfolio in bullion.

Joe Saluzzi (Video, 3:40 Fictitious Trading, Program Trades, 8:20 the M-word, possible repost, H/T DavidC)

a.) Inflation b.) Deflation c.) Both the Above (Whitepaper, I wouldn’t miss pages 7 on)

Barrons Editor ‘It’s a depression’ (Video)

Samuelson on Greenspan

“But the trouble is that he had been an Ayn Rander. You can take the boy out of the cult but you can’t take the cult out of the boy. “

GOLD AND ECONOMIC FREEDOM (Repost)

But the process of cure was misdiagnosed as the disease: if shortage of bank reserves was causing a business decline-argued economic interventionists-why not find a way of supplying increased reserves to the banks so they never need be short! If banks can continue to loan money indefinitely-it was claimed-there need never be any slumps in business. And so the Federal Reserve System was organized in 1913. It consisted of twelve regional Federal Reserve banks nominally owned by private bankers, but in fact government sponsored, controlled, and supported. Credit extended by these banks is in practice (though not legally) backed by the taxing power of the federal government. Technically, we remained on the gold standard; individuals were still free to own gold, and gold continued to be used as bank reserves. But now, in addition to gold, credit extended by the Federal Reserve banks ("paper reserves") could serve as legal tender to pay depositors.

Job Losses. Measuring the Velocity of Job Cuts in the Current Recession

With 26,000,000 Americans unemployed or underemployed, it is important to understand how the job market data is calculated.

DJIA Chart from Biiwii.com

Demand for Treasury securities is still high (Video)

‘Inflate or Die’: Obama Adviser Says U.S. Should Mull Second Stimulus

“The concern is that the U.S. will have to inflate away its debt. I do not think that is a valid concern,” she said.

 The Booming Repo Business

… As the U.S. foreclosure crisis grinds on, the detailed work of processing, repairing and selling thousands of homes repossessed by banks is real estate’s new gold. In the past year, repo-related business has rapidly grown to national scale, fueling job growth in Colorado, Texas, Ohio and elsewhere to service the meltdown in markets like Sacramento and the Central Valley along with Phoenix, Las Vegas and Florida.

… [Austin-based Field Asset Services], which repairs, cleans and maintains repos right down to mowing the lawns weekly, has almost tripled its hiring in the past 18 months. Austin business publications gush over the firm’s "hiring spree," its 550 employees and third expansion into larger offices in a year.

Clearly, the housing distress that has overwhelmed states like California has become big business.

 Sergio Posts Bond As Toxic Code Percolates In Cyberspace And Allows "Market Manipulation"

“The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways,” Facciponti said.

Montreal has Bixi and a Great Bike Lane System

Montreal has its own public bike-sharing programme, Bixi, which is proving to be a great success with 3,000 bicycles in 30 different locations.

Bloomberg – Joe Saluzzi, (H/T DavidC, Video)

33.8 Million

33.8 million participated in the Agriculture Department’s Supplemental Nutrition Assistance Program

Madoff California Style

California is literally stealing tax refunds – that is, over-payments, and issuing "IOUs", never mind that those funds are not theirs

Madoff Goldman Style

through access to the system as a result of their special gov’t perks, was/is able to read the data on trades before it’s committed, and place their own buys or sells accordingly in that brief moment, thus allowing them to essentially steal buttloads of money every day from the rest of the punters world.

Two things come out of this:

1. If true, [enphasis mine]

Stimulus Our Tax Dollars Bacame a Band Aid for a Gaping Wound

states are using their stimulus dollars to satisfy immediate needs rather than undertake longer-term reforms

Art Cashin Trader Talk, Stimulus misused, like an empty fire extinguisher (Video)

Gold investors treading water? (Video, David Morgan on the Street!)

 

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