Daily Digest

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Daily Digest 8/12 - Risks Are Rising While Low Risks Are Discounted, “What, Me Worry?” Markets

Saturday, August 12, 2017, 12:39 PM

Economy

Why Some U.S. Ex-Spies Don't Buy the Russia Story (lambertad)

VIPS instead surmises that, after WikiLeaks' Julian Assange announced on June 12, 2016 his intention to publish Hillary Clinton-related emails, the DNC rushed to fabricate evidence that it had been hacked by Russia to defuse any potential WikiLeaks disclosures. To this end, the theory goes, the DNC used the Guccifer 2.0 online persona to release mostly harmless DNC data. Guccifer 2.0 was later loosely linked to Russia because of Russian metadata in his files and his use of a Russia-based virtual private network.

New York Fed chief Dudley has an idea — homeowners should tap into equity (lambertad)

“The good news is that, while the current expansion is quite old in chronological terms, it is still relatively young in terms of the health of household finances,” Dudley said in a speech to the National Retail Federation.

“Whatever the timing, a return to a reasonable pattern of home equity extraction would be a positive development for retailers, and would provide a boost to economic growth,” Dudley said.

Risks Are Rising While Low Risks Are Discounted (lambertad)

As a related rule, people adapt to the circumstances they have experienced and are then surprised when the future is different than the past. In other words, most people are inclined to assume that the circumstances they have recently encountered will persist, which leads them to change what they are doing to be consistent with that recently experienced environment. For example, low-volatility periods in which credit is readily available tend to lead people to assume that it’s safe to borrow more, which leads them to lever up their positions, which contributes to greater volatility and hurts them when things change.

“What, Me Worry?” Markets (GE Christenson)

“Print” more dollars, euros, what-have-you, buy stocks and bonds to support the paper markets, and watch them fly to the moon. What, me worry? As long as the central banks print currencies, increase debt, levitate the markets and inspire confidence … the game continues. But what happens when “the music stops?” Russian sanctions and North Korean war tweets may puncture the confidence bubble.

Boss tells state workers: Kick ICE out of California labor offices (Steph P.)

Those contacts with immigration officers dovetail with a surge in complaints from California workers about employers threatening to have them deported. Last year, Su’s office in the Department of Industrial Relations investigated 14 complaints from workers who claimed their employers threatened them with immigration enforcement.

What Trump Needs to Know About North Korea's History (jdargis)

North Korea, however, did not fare well under the division system, for a variety of political and economic reasons. The system that has ensured a workable peace for the rest of Asia and brought prosperity for South Korea has long been viewed by the North Koreans as the main impediment to realizing their nation’s destiny: the unification of the peninsula. Hence, North Korea’s never-ending revolutionary commitment to achieving the nation’s “final victory”: a war for fatherland unification and and the end of the “peace terms” imposed by the division.

Is America Talking About Opioids the Wrong Way? (jdargis)

Cities and states have tried all sorts of solutions as America’s opioid crisis has worsened. But many public health officials say there are many options -- in some cases, approaches that have been proven effective in other countries -- that are still being left on the table. To really fight this epidemic, these experts say, governments must fully embrace every solution out there. And they may need to change the entire way they think about opioids.

Court keeps Great Lakes wolves on endangered species list (Steph P.)

In a 3-0 ruling Tuesday, a panel of the U.S. Court of Appeals for the District of Columbia Circuit said the service had not sufficiently considered important factors. They included how loss of historical territory would affect the predator's recovery and how removing the Great Lakes population segment from the endangered list would affect wolves in other parts of the nation.

Gold & Silver

Click to read the PM Daily Market Commentary: 8/10/17

Provided daily by the Peak Prosperity Gold & Silver Group

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."

9 Comments

Uncletommy's picture
Uncletommy
Status: Gold Member (Offline)
Joined: May 4 2014
Posts: 413
He can't be serious, can he?

The New York Fed chairman, William Dudley, has obviously has been inhaling the rarified air of the FED offices for far too long. Not only has financial repression been chewing a hole in the savings and pensions of the "Premillennials" and parents of "Gen-Z'ers", but now he thinks it wise to have them borrow from their home equity to keep the economy humming along. It is one thing to borrow from the future by printing money, however, to recommend to those who have saved responsibly for decades to cash in the only equity many "working stiffs" have, is about as arrogant as it gets. At the current state of affairs, I'll be lucky to afford the toilet paper once I start dipping into home equity to finance more consumer crap that I'm trying to unload at the present time. The fable of endless prosperity continues to be the mantra of this insane society. Maybe I should bury some money in the backyard and see if it will grow. The magic beans I planted didn't pan out.

robie robinson's picture
robie robinson
Status: Diamond Member (Offline)
Joined: Aug 25 2009
Posts: 1123
Magic beans?

My beans returned much better than20:1, and they ain't magic

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 3986
Prepare for negative interest rates in the next recession, says

Prepare for negative interest rates in the next recession, says top ...

Telegraph.co.uk-19 hours ago
The key consequence from an economic point of view is that forcing savers to keep cash in an electronic format would make it easier to levy a negative interest ...

After a Summer Bond Binge, Signs of Angst Are Growing in the Market

Bloomberg-1 hour ago
Charter already has $63 billion of debt on its balance sheet, while Sprint carries $40.9 billion. SoftBank has total debt of about $130 billion. Meanwhile, Son's ...

Analysis: Illinois public school spending grew 12 times faster than ...

Chicago City Wire-1 hour ago
Illinois' public K-12 school system spent more than $37 billion last year, ... The Teachers Retirement System (TRS) saw its debt jump from $9.6 billion in 1997 to ...

Colorado families struggle to pay skyrocketing back-to-school costs

The Denver Post-2 hours ago
Colorado families struggle to pay skyrocketing back-to-school costs .... families who are particularly hard hit by higher rents and health care costs, Penning said.

 

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1409
Money Master Posting Old PP Interview as New

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1409
Re: Illinois Public School Spending Increase x12 Student Increas

http://chicagocitywire.com/stories/511183293-analysis-illinois-public-school-spending-grew-12-times-faster-than-enrollment

And the teachers are protesting?   Who is getting the money!   

cmartenson's picture
cmartenson
Status: Diamond Member (Online)
Joined: Jun 7 2007
Posts: 5397
Sat whaaaAaaat?
KugsCheese wrote:

That's pretty low.  Derpy too.

Also took care to remove any identifying information including the intro.  

Here's the original:  https://www.peakprosperity.com/podcast/91810/david-stockman-global-economy-has-entered-crack-phase

It's from August all right...August 2015.

 

 

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1409
Re: Sat WhaaaAaaat?

Report that fraudster to YouTube!   He is using PP content that I assume is copyrighted.

Adam Taggart's picture
Adam Taggart
Status: Peak Prosperity Co-founder (Offline)
Joined: May 26 2009
Posts: 2767
Money Master Reported to YouTube

Many thanks for flagging, Kugs.

I've reported the issue to YouTube. Will update folks here once I've learned of any action they take.

It looks like the channel is doing the same spoofing with interviews of Rickards, Rogers, Schiff and others...

skipr's picture
skipr
Status: Bronze Member (Offline)
Joined: Jan 9 2016
Posts: 76
K-12 admin costs

About 20 years ago I talked to a teacher about her salary.  She said that 45% of the entire school budget went to admin costs.  That blew me away.  I bet that ratio is much higher now, especially in IL.  It reminds me of CEO/bankster stock buyback etc looting.

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