Daily Digest

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Daily Digest 10/15 - Lessons From Iceland On Financial Crisis, How Amazon Spread Across The U.S.

Monday, October 15, 2018, 9:59 AM

Economy

Meet The Finance Professor Exposing Rigged Markets One Academic Paper At A Time (Don R.)

Griffin works at the University of Texas at Austin, and has become quite an unpopular figure on Wall Street for similar work he has done in the past on ratings companies, the VIX and investment banks. In most of his findings, he claims that these well-known financial instruments and players are, in one way or another, rigged. And the professor seems to enjoy exposing precisely that: rigged, manipulated markets and shady players.

The huge 'blackout' that may be deepening market turbulence (Thomas R.)

To avoid tripping insider trading rules, companies typically avoid buyback shares during the two weeks prior to reporting earnings. Last week's market storm -- the Nasdaq's worst week since March -- occurred during the darkest part of these so-called "blackout" windows.

Pentagon data breach compromises up to 30,000 workers (Sparky1)

The timing is... less than ideal. The Government Accountability Office only just issued a report saying that the Defense Department had made progress on securing its networks, but was falling short in protecting weapon systems. Clearly, there's work to be done beyond that, even if the scale isn't as large as some high-profile government hacks. Institutions are only as secure as the vendors they use, and a flaw at one partner can have far-reaching repercussions.

4 lessons from Iceland on dealing with a financial crisis (Don R.)

Published in 2010, the truth commission’s 2,200-page report not only documented the manifold failings of the financial system in Iceland but also offered specific recommendations to protect state institutions from a future crisis. The report instantly became a bestseller, with copies sold in supermarkets. It was a popular gift – parents even gave it to their children to help them avoid making the same mistakes.

Italy Is the Creeping Concern for Finance Chiefs in Bali (Thomas R.)

The heightened attention on the euro zone’s third-biggest economy is a sign that, almost 10 years after the start of the region’s sovereign debt crisis, the bloc remains fragile in the eyes of investors and observers. The fact that Italy is in crisis just as the European Central Bank considers slowly withdrawing stimulus is compounding that risk.

Dr. Doom Ignites A Bitcoin Firestorm (Thomas R.)

The other element that is impacting interest in Bitcoin is the fact that it has become less volatile. News attracts attention when volatility is high as people crave information. Bitcoin had a 10-day realized volatility as low as 17 just last week (according to Bloomberg). While still high by most standards, that is well below highs of 176 in January and even well under the 90 hit as recently as July. Bitcoin just isn't as volatile as it once was.

Watch how Amazon spread across the US (Sparky1)

Here’s how Amazon moves millions of packages a year so fast: An order's first stop is usually an “inbound cross-dock,” which collects items from vendors on their way to the fulfillment center, where customer orders are boxed and addressed. From there, they may go to a “sortation center,” which divides up packages by the zip code of their destination so they can be delivered to the nearest US Postal Service office to be dropped off at the customer’s doorstep. They might also be taken to a local “delivery station,” which dispatches Amazon’s own couriers for last-mile distribution.

The Shaky Case That Russia Manipulated Social Media to Tip the 2016 Election (Paul D.)

But an investigation of the data they cite to show that the Russian campaigns on Facebook and Twitter were highly effective reveals a gross betrayal of journalistic responsibility. Shane and Mazzetti have constructed a case that is fundamentally false and misleading with statistics that exaggerate the real effectiveness of social media efforts by orders of magnitude.

Magic Leap's new AI assistant looks alarmingly human (Sparky1)

This is all possible because of Magic Leap's breakthroughs in augmented reality, according to Amitabh Varshney, a University of Maryland professor who researches augmented and virtual reality. He pointed to the way light reflects off Mica's skin, a subtle detail that's critical to making Mica seem human.

Bank of England confirms new £50 note plans (sign-in required, Thomas R.)

The Treasury’s campaign to modernise cash was undone by Theresa May moving quickly to reject “trashing 1,000 years of history” following campaigns launched in the tabloid press and comments by the Treasury’s former top official saying “only banana republics don’t have a coin representing the lowest denomination of their currency”.

Large West Virginia coal mine with 400 workers closing (Thomas R.)

WVVA reports workers at the mine, which is owned by Mission Coal, said this week negotiations to sell the mine fell through. The mine is largest employer in Wyoming County after the school system. Workers were moving equipment out of the mine this week, a sure sign of its imminent closure.

Oil Demand and Supply Reaches Landmark 100 Million Barrels a Day (Paul D.)

"In fact, production has surged, led by the US shale revolution, and supported by big increases in Brazil, Canada and elsewhere," the IEA said. "There is no peak in sight for demand either. The drivers of demand remain very powerful, with petrochemicals being a major factor."

Red Cross suffers own damage from Hurricane Michael (Thomas R.)

"We're watching what people are going through," Smith said. "We've been through this with Matthew and Irma, but this is a little bit different. This is catastrophic, but it's a reminder for all of us that this could have been our community, and in some ways, it is our community. Please continue to be diligent. Make sure you have your disaster supply kit in place, as well as a plan."

Among the Ruins of Mexico Beach Stands One House, Built ‘for the Big One’ (Thomas R.)

Florida’s building code, put into effect in 2002, is famously stringent when it comes to windstorm resistance for homes built along the hurricane-prone Atlantic shoreline. But it is less so for structures along the Panhandle, a region historically unaffected by storms as strong as the ones that have slammed into South Florida.

Greek State Prosecutes 21 Environmental Defenders for Opposition to Eldorado Gold Mine (newsbuoy)

Eldorado owns its stake in Skouries through a Greek subsidiary, Hellas Gold. Eldorado owns 95 percent of that subsidiary, the remaining 5 percent is owned by a Greek construction company, Ellaktor SA. That company is controlled by the wealthy Bobolas family, which also has important interests in the Greek media. In 2015, Ellaktor Managing Director Leonidas Bobolas appeared before a public prosecutor after his arrest by the Financial Crime Unit. He was accused of major tax evasion.

Hurricane Michael flattened towns where survivors remain in disbelief (Thomas R.)

“I looked over at my husband and I took his hand and I said we're not going to make it,” said Anderson. “We are not going to make it.”

Fortunately, all 40 people sheltered inside survived. Once the storm passed, they crawled through blown out windows to get out of the demolished building. The first time she went back inside the building, it was almost too much to bear.

Great Barrier Reef teeters towards coal-fired extinction (Paul D.)

About 50% of the Great Barrier Reef is already in danger, and 70% will be lost if temperatures rise by 1.5 degrees Celsius. If there were a 2% rise, as much as 99% of the reef’s coral would be “bleached” and destroyed.

Gold & Silver

Click to read the PM Daily Market Commentary: 10/12/18

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."

6 Comments

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
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Posts: 2036
"Severely Punishing" one's oil supplier--not too likely

It is believed that journalist Jamal Khashoggi was dismembered after being abducted by the Saudis, and all of the major western powers have expressed major concern about his fate....  Saudi Arabia denied any involvement in the disappearance of ... Khashoggi and warned Sunday that any sanctions against the oil-rich kingdom would be met with “greater action” and possibly exploding oil prices.

[S]audi-owned Al Arabiya channel’s General Manager Turki Aldakhil warned that imposing sanctions on the world’s largest oil exporter ... would lead to Saudi Arabia’s failure to commit to producing 7.5 million barrels. If the price of oil reaching $80 angered President Trump, no one should rule out the price jumping to $100, or $200, or even double that figure,” he wrote.

When you supply a high percentage of the worlds oil, and set the marginal price of a barrel of oil in the global marketplace, you can, realisticly, get away with murder.

 

reflector's picture
reflector
Status: Gold Member (Offline)
Joined: Aug 20 2011
Posts: 279
Except
sand_puppy wrote:

It is believed that journalist Jamal Khashoggi was dismembered after being abducted by the Saudis, and all of the major western powers have expressed major concern about his fate....  Saudi Arabia denied any involvement in the disappearance of ... Khashoggi and warned Sunday that any sanctions against the oil-rich kingdom would be met with “greater action” and possibly exploding oil prices.

[S]audi-owned Al Arabiya channel’s General Manager Turki Aldakhil warned that imposing sanctions on the world’s largest oil exporter ... would lead to Saudi Arabia’s failure to commit to producing 7.5 million barrels. If the price of oil reaching $80 angered President Trump, no one should rule out the price jumping to $100, or $200, or even double that figure,” he wrote.

When you supply a high percentage of the worlds oil, and set the marginal price of a barrel of oil in the global marketplace, you can, realisticly, get away with murder.

Except that, it wasn’t murder. It was a botched interrogation. We know this because MBS said so:

https://www.zerohedge.com/news/2018-10-15/saudi-admit-khashoggi-killed-during-botched-interrogation-stocks-slump

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1714
Ya right

And his body was accidentally cut into small pieces and removed from the embassy in diplomatic pouches. laugh

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 2036
Accidental dismemberment

One of the ZH posters pointed out that Jamal Khashoggi was a very well connected guy.  I don't doubt that he Knew Things.  From the news site Voa News

Jamal Khashoggi, 59, was born in Medina, Saudi Arabia, one of the holiest cities in Islam. Like many Saudis at the time, Khashoggi left to study abroad. He earned a business administration degree in 1983 at Indiana State University in the United States.

Khashoggi began his career as a reporter for the English language newspaper Saudi Gazette. He went on to work for several Arab newspapers and made his mark as a foreign correspondent covering Afghanistan, Algeria, Sudan and the Middle East in the 1990s. During that time, he met and befriended Osama bin Laden, who was fighting in Afghanistan against the Russians. Khashoggi interviewed bin Laden several times during that period.

He was deputy editor-in-chief of Arab News, the leading English newspaper of Saudi Arabia, from 1999 to 2003. He was named editor-in-chief of the Al Watan newspaper in 2003 but the job lasted only two months.

After he was fired from Al Watan, Khashoggi became media adviser to Saudi Prince Turki bin Faisal, the former head of Saudi Arabia’s General Intelligence Directorate, who served as the Saudi ambassador to Washington from 2005 until the end of 2006.

On his personal website, Khashoggi writes he was reinstated as editor-in-chief at Al Watan in 2007 and served for three years before being fired again for “pushing the boundaries of debate within Saudi society.”

In 2010 he was made general manager of a new 24-hour Arabic news channel, Al-Arab, in Manama, Bahrain. The news channel was ordered off the air within 11 hours of its launch.

FILE- Saudi Crown Prince Mohammed bin Salman visits France, April 9, 2018. The disappearance of Saudi journalist Jamal Khashoggi, Oct. 2, 2018, in Turkey, peels away a carefully cultivated reformist veneer promoted about the Saudi Crown Prince, instead exposing its autocratic tendencies.

FILE- Saudi Crown Prince Mohammed bin Salman visits France, April 9, 2018. The disappearance of Saudi journalist Jamal Khashoggi, Oct. 2, 2018, in Turkey, peels away a carefully cultivated reformist veneer promoted about the Saudi Crown Prince, instead exposing its autocratic tendencies.

Self-imposed exile

Since then, Khashoggi has been a political commentator, appearing on several Arab and international news channels and writing for a number of publications and on social media.

He went into a self-imposed exile in the United States last year, fearing for his safety after Crown Prince Mohammed bin Salman began consolidating his position and cracking down on critics. He told Al Jazeera TV’s Upfront in March that he left the kingdom “because I don’t want to be arrested.”

Khashoggi comes from a powerful and well-known family in Saudi Arabia. He is the grandson of Muhammad Khashoggi, a Turkish doctor who married a Saudi woman and served as the personal physician for King Abdulaziz Al Saud, the founder of the kingdom.

Jamal Khashoggi is the nephew of Adnan Khashoggi, a Saudi businessman and arms dealer known for his part in the Iran-Contra scandal. Adnan Khashoggi was the middleman in the arms-for-hostages deal. In the 1980s, Adnan Khashoggi was estimated to have a net worth of $4 billion.

Jamal Khashoggi’s cousin, Dodi Fayed, was dating Britain’s Princess Diana when the two were killed in a car crash in Paris.

TechGuy's picture
TechGuy
Status: Gold Member (Offline)
Joined: Oct 13 2008
Posts: 453
"And his body was

"And his body was accidentally cut into small pieces and removed from the embassy in diplomatic pouches"

"He fell on my knife, 36 times, then he fell on to chainsaw that dismembered him" --Saudi Interogator

 

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 2036
How big is a Woolly Mammoth?

An intact Woolly Mammoth skull was unearthed in Michigan.

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