Daily Digest 3/7 - Beware The Dow Jones High, Maine Town Declares Food Sovereignty
Many of the same problems that led to Swiss frustration with CEO pay apply here in the U.S. For instance, Citigroup CEO Vikram Pandit walked off with millions of dollars after vaporizing most of his company’s value. Duke Energy paid its former CEO $44 million for working literally one day.
Iran reportedly uses snipers to tackle Tehran's rat problem (Nervous Nelly)
Officials say the city is now working to boost the number of sniper squads to 40, according to The National.
This is not the first time the SEC has sought to beef up its collaboration with the FBI. For the past couple years, a unit within the SEC's enforcement division that handles all incoming tips, complaints and referrals has had a resident FBI agent.
A columnist at Dow Jones said the book was “one of those rare finds that not only predicted the subprime credit meltdown well in advance, it offered Main Street investors a winning strategy that helped avoid the forty percent losses that followed...”
John Williams Exposes Government Lies (Arthur Robey)
About this Week’s Show: The consumer is NOT back, the economy has not recovered, even $5,000 gold is still “a buy”
Scary New Satellite Pictures Of China's Ghost Cities (Nervous Nelly)
Of course things may be better than they seem. Yale's Stephen Roach argues that China is experiencing "the greatest urbanization story the world has ever seen," and that these ghost cities will soon become "thriving metropolitan areas."
No down payment? No problem (Nervous Nelly)
The FHA has traditionally allowed family and friends to gift a downpayment to homebuyers. In the last 10 years, homebuilders and sellers have gotten into the act by funneling their upfront consideration through down-payment assistance not-for-profits. Technically wiping out a conflict of interest, the charitable outfit collects the cash and hands it over to the mortgage lender taking a bit off the top for all its trouble.
Michigan Gov. Rick Snyder has declared a financial emergency in the city of Detroit.
He has also threatened to have an emergency financial manager take control over the troubled city after March 12 if local officials don’t come up with a plan to remedy the city’s troubled finances.
Saving Detroit City Council from Itself (Phil H.)
Earlier this week, Council President Pro Tem Gary Brown thought the nine members on the council should cut their expenses, since massive layoffs of city workers are inevitable, and the city is sure to ask those remaining for pay and benefit concessions.
Housing fuels record $7.33-billion bank profits (westcoastjan)
It was the second time BMO brought out the product, a five-year, 2.99% loan. The first time — it was available for a few weeks in Jan 2012 — the bank managed to bring in more than $7-billion of business.
Montreal’s first nighttime tuition-fee protest in several months was almost a mirror image of the demonstrations that filled the city’s streets last year. The biggest change was that protesters were chanting against Premier Pauline Marois instead of Jean Charest, who also tried to jack up tuition when he was premier.
And like some of last year’s marches, Tuesday night’s protest ended with the crash of breaking plate glass splitting the night, the scream of police sirens and the clatter of batons against riot shields as police charged the thousands of demonstrators.
How Tiny Cameras Have Become Big Business (westcoastjan)
But now one company, Pivothead, is putting superior technology into sunglasses worn by highway patrol officers in places like Austin, Texas. The glasses are able to capture the details of a driver's face in high-definition and record conversations at higher bit rates using smaller, more precise microphones.
Pivothead's Zach Barbitta says the benefits are many.
Analyst John Kaiser said that the junior market needs to disconnect from the current situation and simply focus on the future. At this point, investors are using any negative sentiment about the mining sector as an excuse to hammer juniors. He does not see that changing imminently, and reiterated his view that hundreds of them need to disappear, leaving the competent ones behind.
There are always limitations in any system, and in paper money systems the debt must be balanced by real growth and investment, an organic growth that makes the rolling debt burden, which is really the basis of the money itself, sustainable and productive. That growth must be broadly based in order to support consumption from within the system itself, and this implies income commensurate with increasing productivity.
Beware The Dow Jones Nominal Record High (Taki T.)
With the assumption that the monetary inflation will result in price inflation of one or several assets in the (near) future, we thought it was interesting to take history as a guide. The following two charts go back to the Weimar hyperinflationary period from the 1920′s. The message here is not that we are convinced that hyperinflation will hit, although our assumption remains that at least runaway inflation is very likely (if our political leaders that their current course).
Most Americans tend to think of a "water crisis" as something that happens in very dry places such as Africa or the Middle East, but the truth is that almost the entire western half of the United States is historically a very dry place. The western U.S. has been hit very hard by drought in recent years, and many communities are on the verge of having to make some very hard decisions. For example, just look at what is happening to Lake Mead. Scientists are projecting that Lake Mead has a 50 percent chance of running dry by the year 2025. If that happens, it will mean the end of Las Vegas as we know it. But the problems will not be limited just to Las Vegas. The truth is that if Lake Mead runs dry, it will be a major disaster for that entire region of the country.
Maine Town Declares Food Sovereignty (safewrite)
The problem with your question is that nobody really knows the answer. In Maine, there are maybe ten or so “citizen-initiated rights-based” ordinances like ours, passed in various towns in recent years, on a variety of issues. For instance, Montville passed an ordinance forbidding the planting of GMO’s several years ago. ME’s Dept of Ag wrote them a letter saying they could not do that according to some legal point, whereupon Montville’s counsel wrote back that they could do it because of a different point of law. As far as we know, that was that.
The children going hungry in America (westcoastjan)
Kaylie and Tyler live with their mother Barbara, who used to work in a factory. After losing her job, she was entitled to unemployment benefit and food stamps - this comes to $1,480 (£974) a month.
But they were no longer able afford to live in their house, which along with bills cost $1326 (£873) a month, leaving little for food or petrol.
CDC sounds alarm on deadly, untreatable superbugs (Nervous Nelly)
So far, this particular class of superbug, called carbapenem-resistant Enterobacteriaceae, or CRE, has been found only in hospitals or nursing homes, rather than in the community, Frieden said. But officials sounded the alarm partly because, if the bacteria's spread isn't contained soon, even common infections could become untreatable.
Fending off the ‘nightmare bacteria’ (Micheal W.)
To fight the supergerms, hospitals are aggressively following new protocols designed to contain them before they lead to infections, which can be deadly when the bacteria stops responding to all antibiotics. The strategies include quarantining patients, assigning people their own personal nurse, rectum cultures to detect bacteria carriers and special staff that are essentially hygiene police.
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