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    Daily Digest – October 25

    by DailyDigest

    Sunday, October 25, 2009, 2:54 PM

  • TARP chief: Banks possibly ‘in more danger now’
  • Even the Fed Doesn’t Want to Hold U.S. Dollars
  • Herding the Sheep
  • China to use ASEAN meet to make Yuan an international currency
  • Lazard Asset Management Fund Dumps The Dollar
  • The Future Of Warfare
  • French Official Says U.S. Trying to Inflate Away Debt
  • The Number of Job Hunters 65 or Older Skyrockets
  • Freddie Mac’s Secrecy Pacts Face Court Test
  • Mauldin For The Week (JRB)

Economy

TARP chief: Banks possibly ‘in more danger now’ (Vinny A.)

The banking system today may be in a more precarious position than it was a year ago, the man charged with overseeing a $700 billion bailout program said Wednesday. Neil Barofsky, the special inspector general managing the Troubled Asset Relief Program, told CNN’s Wolf Blitzer on Wednesday that the government’s decision to support bank mergers over the past year may have put the U.S. economy more at risk.

Even the Fed Doesn’t Want to Hold U.S. Dollars (Vinny A.)

Americans just got 15% poorer on the world stage thanks to Ben Bernanke A currency crisis is in the works (and perhaps already starting) Regarding #1: When the financial crisis hit, the Fed realized it would need to keep interest rates low while it attempted to bail out the banks (80% of the $200+ trillion in derivatives sitting on commercial banks’ balance sheets are related to interest rates).

Herding the Sheep (Vinny A.)

Financial insider and commentator Yves Smith wrote an essay last week entitled “MSM Reporting as Propaganda” arguing that the government has been using propaganda to make people think that things are getting better, no one is angry, and – therefore – no one should get upset: The message, quite overtly, is: if you are pissed, you are in a minority. The country has moved on. Things are getting better, get with the program…

China to use ASEAN meet to make Yuan an international currency (Claire H.)

BEIJING: China is set to use the ASEAN meet to sell the idea of making the Yuan an international currency. It is using the sense of uncertainty over the US dollar to sell a new dream of enlarged regional trade, financial support from Beijing and reduced dependence on the volatile dollar.

Lazard Asset Management Fund Dumps The Dollar (Claire H.)

It was only a matter of time before asset managers said “enough” to Bernanke’s plan of debasing the dollar day after day, and took appropriate measures. In a not very surprising, yet quite shocking at the same time, development, caught by Annuity IQ, Lazard’s The World Trust Fund has had enough of the dollar. Lazard will “change the currency in which the Fund’s shares are traded from US dollars to Sterling.” Good work Mr. Chairman and Wall Street lobby.

The Future Of Warfare (Claire H.)

Can you say “Big Brother is watching”? The Air Force is developing technologies that will give our military a tremendous advantage. But can this technology be used abused? Check out this video presentation of the MAV (Micro Air Vehicle) and decide for yourselves. It’s not science fiction any more.

French Official Says U.S. Trying to Inflate Away Debt (M.W.)

The United States is pumping out liquidity to try to inflate away its debt, leading to the depreciation of the US dollar, Henri Guaino, a top advisor to French President Nicolas Sarkozy said on Tuesday. He told reporters on the sidelines of a conference that the United States was ‘flooding the world with liquidity’…..’Historically, we have only ever got out of such situations with inflation….’if we lose control of inflation and there is hyperinflation, it’s a catastrophe for everyone,’ he added.

The Number of Job Hunters 65 or Older Skyrockets (M.W.)

Nearly half a million people 65 and older want to work but cannot find a job, this group’s highest unemployment level since the Great Depression.

Freddie Mac’s Secrecy Pacts Face Court Test (M.W.)

In their class-action lawsuit against Freddie Mac, three big pension funds charge that Freddie Mac executives defrauded investors by concealing the company’s exposure to high-risk mortgages, mounting losses, inadequate capital. Lawyers allege that secrecy provisions have already muzzled at least two dozen former employees. Treasury has propped up Freddie Mac with more than $50 billion in taxpayer money and will probably need additional billions in the months ahead.

Mauldin For The Week (JRB)

“Our kids? It is not the times that dictate the man (or daughter!), but the response of the man which dictates his own time. Today promises a brighter future for someone young than any other time in history, whether they are in the US or Brazil or China. They just have to seize it.”

 

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