Daily Digest

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Daily Digest 8/29 - Hurricanes Not Good For The Economy, CA Water Tax Proposed

Tuesday, August 29, 2017, 10:08 AM

Economy

Harvey Recharges Offshore as Crippled Houston Counts the Cost (cmartenson)

Houston was born from the wreckage of a cataclysmic storm in 1900, and in the decades since has weathered not only water and wind but the gyrating fortunes of the oil industry. The sprawling megalopolis, which takes a perverse pride in its booms and busts, will endure Harvey as well, said Patrick Jankowski, senior vice president of research for the Greater Houston Partnership.

BlackRock Finds $5 Trillion Industry Is Now Riskier Than in '08 (lambertad)

The reason is pretty simple. Insurers needed to make up shortfalls after the crisis. But in a decade of low interest rates they had to venture beyond their traditional holdings of vanilla bonds. They now own vast amounts of stocks, high-yield debt and a variety of alternative assets -- a bucket that can include hard-to-sell stakes in private equity investments, hedge funds and real estate.

You Might Be A Partisan Hack If... (Afridev)

There’s nothing sexier than an independent free thinker who seeks understanding and stands in their own truth, come what may. There is nothing less sexy than someone who gets their worldview pre-packaged from the pundits and politicians of the Democratic or Republican party and thinks what they’re told to think.

Is Your Portfolio About to Burn to the Ground? (Tiffany D.)

When the business cycle is petering out, sending us into the contraction phase, the degree of correlation within and between price movements of various asset classes — such as stocks, bonds and commodities — begins to decline.

Asset prices that usually move together start to move independently. Oil futures drop but retail sector stocks rise, for example. Transport stocks suffer but some automakers do well.

China Is Creating the World's Largest Power Company (jdargis)

The government of President Xi Jinping approved the merger of Shenhua Group Corp., the country’s top coal miner, with China Guodian Corp., among its largest power generators, the State-owned Assets Supervision and Administration Commission said Monday. With assets of 1.8 trillion yuan ($271 billion), the new entity will be the world’s second-biggest company by revenue and largest by installed capacity, according to Bloomberg New Energy Finance.

Opinion: No, hurricanes are not good for the economy (cmartenson)

Over the years, I’ve observed a tendency among economists and traders to view such events through a demand-side prism. They see lost income translating into reduced spending on goods and services, which might even warrant some largesse from the central bank.

Of course, that is precisely the wrong medicine. Supply shocks reduce output and raise prices. The Federal Reserve’s interest-rate medicine affects demand. Lower interest rates will increase the demand for gasoline, among other goods and services, but they have no effect on supply. An easing of monetary policy under such circumstances would increase demand for already curtailed supply, raising prices even more.

Gas Prices Spike As Harvey Shuts Down Gulf Coast Refineries (Michael K.)

Among the plants being shut down was Exxon’s 560,500-bpd facility in Baytown – the second-largest oil refinery in the U.S. after Port Arthur. Shell also started shutting down its Deer Park facility, which has a capacity of 340,000 bpd, and Phillips 66 started the shutdown of a 247,000-bpd refinery in Sweeney. Texas houses some 4.944 million bpd in refining capacity.

First-ever water tax proposed to tackle unsafe drinking water in California (edelinski)

SB 623 has been moving through the Legislature for months, but was amended Monday to include the tax on water for both homes and businesses. It also imposes taxes on farms and dairies, roughly $30 million annually, to address some of the contamination caused by fertilizers and other chemicals. Because it includes new taxes, the proposal will need a two-thirds vote in each house to pass, which supporters concede will be a battle.

Gold & Silver

Click to read the PM Daily Market Commentary: 8/28/17

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."

3 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4237
France's Debt Is Euro-Zone's Largest

Saudi Arabia loses $250 billion in cash in 3 years amid low oil prices

Daily Sabah-8 minutes ago
... the loss through Riyadh's expansion of its sovereign wealth fund to invest abroad. ... Nevertheless, a rise in the cost of insuring Saudi debt against default this ...

Venezuela to prosecute those supporting US sanctions

Reuters-11 hours ago
CARACAS (Reuters) - Venezuela will prosecute those who supported recent U.S. sanctions against the South American country, its Constituent Assembly, made ...

France's Debt Is Euro-Zone's Largest

Bloomberg-3 hours ago
While Luxembourg, Ireland, the Netherlands, Belgium and Portugal have even higher total debt-to-GDP ratios, France's total debt of 9 trillion euros ($10.8 trillion) ...
1000x-1.png

Brazil's new budget targets approved at congressional committee

Nasdaq-46 minutes ago
Brazil's government proposed earlier this month a new primary deficit target of 159 billion reais ($50 billion) for this year and next, a looser goal than its previous ...

Obamacare premium costs in Maryland set to jump as state ...

Baltimore Sun-15 hours ago

“We have reached the point where individual health care premium rates are too high to be readily affordable by the general public,” said Burrell, who anticipates ..

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5971
Re-humanizing NK

Somebody synced up the video and put the music "Staying Alive" to the North Korean military parade spectacle.

Oddly satisfying, very re-humanizing, and don't forget to turn up your speakers!  

:)

DennisC's picture
DennisC
Status: Gold Member (Offline)
Joined: Mar 19 2011
Posts: 342
Let Them Eat Cake

I was momentarily confused by the "French Makeup" title on the France's debt graphic.

Every part of this is hilarious: the outrage over how much it costs to make the president pretty; the knowledge that it could cost around $123,000 just to make a man look like he’s not wearing any makeup to begin with; the fact that the Élysée Palace had to come out in defense of its beauty-routine spending. It’s especially funny in light of the fact that Macron’s approval ratings are hovering in the mid-30s right now, in part because of his dramatic budget cuts that caused the head of the French armed forces to resign. If Macron’s even complexion weren’t worth 26,000 euros a quarter, the French government might have been able to pay the salary of another civil servant or two.

http://www.slate.com/blogs/xx_factor/2017/08/24/emmanuel_macron_spent_26...

Haha, joke's on me.

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