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Daily Digest 11/6 - Housing Nightmare Looms In Wake Of Storm, S. Korea Shuts Down Reactor Over Unapproved Parts

Tuesday, November 6, 2012, 12:13 PM

Economy

Students Head Back to School, While Transit Remains Hobbled (jdargis)

At P.S. 2 in Chinatown, power was on but there was no hot water or heat, and food in the freezer had to be thrown out. “We expect to carry on as usual,” the acting interim principal, Bessie Ng, said. She e-mailed teachers telling them to dress warmly.

“The students normally come with many layers,” Ms. Ng said. If they do not, she said, staff members will find something warm for them.

Housing Nightmare Looms In Wake Of Storm (jdargis

It is a task shared throughout the region, as officials in New York, New Jersey and Connecticut struggle to meet the demands of those whose homes have been left uninhabitable. In some cases, the solution may be a familiar, if unwelcome sight: the trailers provided by the Federal Emergency Management Agency after Hurricane Katrina.

Increase Seen in U.S. Suicide Rate Since Recession (jdargis)

The finding was not unexpected. Suicide rates often spike during economic downturns, and recent studies of rates in Greece, Spain and Italy have found similar trends. The new study is the first to analyze the rate of change in the United States state by state, using suicide and unemployment data through 2010.

$4,000 Gold! Yes, But When? (Thomas C.)

Many individuals find it difficult to believe any projections for gold, either higher or lower, because gold is hated, loved, often ignored, and seldom understood or recognized as the ultimate currency. However, most people know that the US government national debt is huge and will grow much larger during the next decade.

Canada Braces As Housing Slowdown Takes Hold (westcoastjan)

Signs are everywhere that Canada’s long run-up in house prices is over, hit by a combination of tighter mortgage lending rules and growing consumer reluctance to take on more debt. Sales of existing homes are down steeply, with condo sales hit especially hard, and some long-booming prices have started to fall.

India state beats drums to stop public urination (westcoastjan)

Last year, in Madhya Pradesh a newly-wed woman left her husband's home two days after her marriage because the house had no toilet.

Defecating in the open is also blamed for the spread of a number of diseases such as tapeworm.

Corporate Savings: Dead Money (westcoastjan)

Business leaders and conservative critics cite that cash mountain as proof that meddlesome federal regulations and America’s high corporate-tax rate is locking up cash and depressing investment. But that cannot explain why the same phenomenon prevails worldwide. Japanese companies’ liquid assets have soared by around 75% since 2007, to $2.8 trillion, according to ISI Group, a broker. Cash stockpiles have continued to grow in Britain and Canada, too, to the immense frustration of policymakers there. “Dead money” is how Mark Carney, the Bank of Canada’s governor, has described the nearly $300 billion in cash Canadian companies now hold, 25% more than in 2008. Mr Carney admonished them to “put money to work and if they can’t think of what to do with it, they should give it back to their shareholders.”

The looming GOP civil war -- whether Mitt wins or not (jdargis)

Regardless of whether Romney wins or loses, Republicans must move to confront its demographic crisis. The GOP coalition is undergirded by a shrinking population of older white conservative men from the countryside, while the Democrats rely on an ascendant bloc of minorities, moderate women and culturally tolerant young voters in cities and suburbs. This is why, in every election, since 1992, Democrats have either won the White House or fallen a single state short of the presidency.

South Korea shuts nuclear reactors over unapproved parts (westcoastjan)

South Korea's 23 nuclear reactors, which supply 35% of the country's electricity, have experienced a series of malfunctions over the past few months.

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6 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4147
cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5729
The credit rating of the US is irrelevant

I find it interesting that credit rating agencies such as Egan-Jones spend time rating the US.  

As far as I am concerned, the US is always an 'AAA' rating because what the rating assesses is the ability of the entity to pay back the loan in the currency indicated.

The chance of the US not paying back its debts in US dollars is pretty much zero.

A far more interesting rating would be along the lines of "what's the chance of this entity paying back the loan in equivalent purchasing power in the future?"

On this basis a 30 year US Treasury bond is certified Junk status in my book.  There's no chance of that bond being paid back in anything remotely resembling current dollar purchasing power.  Practically none.  Almost zero.

Yes...well... (I can hear someone saying) as long as the rate of interest is greater than inflation, then the investment can still be reasonable, right?  

Not in my book.  The principal balance is still going to be paid back in future, not current, dollars so the loss incurred there has to be factored in as well.  Which means that the rate of interest has to be greater than both the rate of inflation PLUS the loss of principal value PLUS the opportunity cost of not putting that money somewhere else that is safer or has a better return.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Commoditiy graphs.

Here is an information rich site for commodities.

Something happened in 2007.

Organic Raw Veggies's picture
Organic Raw Veggies
Status: Bronze Member (Offline)
Joined: Jul 24 2012
Posts: 49
The Credit Rating Of The US Is Irrelevant unless

The market dives and you can get a short in prior to the announcement.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
The Devil makes work.

I'm Bored. Let's photo-shop a cameraman's shadow onto this picture.

Nice work by the way, Yanks. Congratulations.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4147

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