Daily Digest

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Daily Digest 7/4 - Greece On The Brink, Why Don't We Drive More Electric Vehicles?

Saturday, July 4, 2015, 11:26 AM

Economy

Greece Referendum: What Happens If They Vote ‘No’ (jdargis)

With polls showing a tight result, the only thing certain about the referendum is the timing: polls are open from 7 a.m. to 7 p.m. and the result may be known before midnight.

Either way, what follows are emergency negotiations, the outcome deciding which side feels it has the upper hand.

As Greece stands on the brink, the consequences are more than economic (jdargis)

"We are surrounded by a triangle of crisis and destabilization,” Greek Foreign Minister Nikos Kotzias said in an interview, pointing toward the smoldering war in Ukraine, the bloody gains by the Islamic State in Syria and Iraq, and the raging civil war in Libya. “Everybody has to ask himself what will happen if this center of stabilization, Greece, will be destabilized.”

Mindful of Greece, Ukraine Is in a Rush to Line Up Debt Relief (jdargis)

Michael Hasenstab, a lead investor with Franklin Templeton, had poured about $7 billion into Ukrainian bonds in the years before the change of power in Kiev. That investment is worth about $4 billion today. The loss comes to about 1 percent of a global bond fund he oversees. Despite the loss, the fund’s return has been positive this year.

“We do look for situations that are out of favor,” Mr. Hasenstab said in a video released by the company in April last year about the decision to invest in Ukraine.

China Tells Investors: Go Ahead, Bet the House on Stocks (jdargis)

The new guidelines also permit non-listed shares and “other assets” as collateral for margin traders who have insufficient value in their stock accounts to repay loans. The China Securities Regulatory Commission didn’t respond to a faxed query on the changes, while Citic Securities Ltd., the nation’s biggest brokerage, declined to comment.

How Iceland Emerged From Its Deep Freeze (jdargis)

But just as Iceland returns to the fold, Europe is again bracing for a financial catastrophe in a renegade nation. Greece, having missed crucial debt payments, has in recent days moved closer than ever to an exit from the euro. Leaving the common currency — and having to suddenly create its own new money — could plunge Greece into an even deeper economic downturn.

Why don’t we drive more electric vehicles? (jdargis)

One surefire way to get that message across is to give people an EV experience, according to Pam Fletcher, the chief engineer for EVs at General Motors (GM). "The people that have owned and lived with EVs can understand it, they've seen how the vehicles work for them, It's part of the learning curve and more people will understand it over time," she said. "It's hard to explain to people the benefits if they haven't had that experience."

California Drought Takes Some Sparkle Out of Fireworks Displays (jdargis)

Cupertino is in many ways a model California city when it comes to responding to the drought. Parks and lawns across this community are brown, and that is considered a mark of progress here these days. The only remnant left of the bubbling fountain where children once frolicked in front of City Hall is a photograph behind the mayor’s desk; the city turned the fountain off long ago.

Greek Villagers' Secret Weapon: Grow Your Own Food (Chris M.)

Many believe the ability to help one another with food gives Karitaina, with about 30 year-round residents and 100 in the long, drowsy summer, a better chance of surviving than city dwellers coping with the same anxieties. Rural Greek communities have age-old survival tactics that allow them to weather storms such as World War II deprivation and natural disasters. They will need to draw on them deeply, as Greece's current problems are unlikely to go away soon - whatever the outcome of the referendum Sunday on whether to accept the latest bailout proposals, which call for more austerity cuts to already razor-thin public services.

Gold & Silver

Click to read the PM Daily Market Commentary: 7/3/15

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."

12 Comments

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Electric vehicle

My son is very happy with his Nissan Leaf electric vehicle. Service costs $50.

True, it's not going to go far. But it has enough energy for its design brief. And is no slouch.

http://www.extremetech.com/extreme/136894-will-high-mileage-nissan-leafs...

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4148
China to Suspend New Stock Sales to Preserve Liquidity

"The move, which will affect billions of dollars of initial public offerings in the pipeline, comes as the benchmark Shanghai Composite Index has lost more than a quarter of its value since a high set June 12. Previous steps including an interest-rate cut by the central bank have failed to impress investors, many of whom have been forced to unwind their leveraged bets as stocks continue to drop."

"The 1953 agreement, in which Greece and about 20 other countries effectively wrote off a large chunk of Germany's loans and restructured the rest, is a landmark case that shows how effective debt relief can be. It helped spark what became known as the German economic miracle."

"The rout in China's highly leveraged stock market has become a major worry for international investors, who fear a meltdown could further destabilise the global economy even as Greece risks crashing out of the European common currency."

"Nichi Vendola, leader of Italy's opposition Left, Ecology and Liberty party, has vowed to "show our solidarity with the Greek people as they confront... the social butchery ordered by Brussels and blessed by Berlin", which he calls incompatible with founding European principles of unity.

In Spain, radical leftist party Podemos -- which has expressed its support for Tsipras while stopping short of publically backing a 'No' vote -- will send its head of international relations, Pablo Bustinduy, to Athens."

"Martin Schulz, the president of the European Parliament, said the EU authorities may have to prepare emergency loans to keep basic public services functioning and to prevent the debt-stricken country spinning out of control next week.

"Without new money, salaries won't be paid, the health system will stop functioning, the power network and public transport will break down, and they won't be able to import vital goods because nobody can pay," he said. "

"With no room left for interest-rate cuts, the central bank’s most obvious option is more bond purchases. That could be done via its current quantitative easing or the untested Outright Monetary Transactions programs.

Executive Board member Benoit Coeure said this week that the ECB could develop “new instruments” to rein in market volatility, without saying what they might be."

"If Greece crashes, a trillion euros (the equivalent of Spain's GDP) will be lost. It's too much money and I don't believe Europe could allow it," he told El Mundo, according to Reuters.

"Why have they forced us to close the banks? To frighten people. And when it's about spreading terror, that is known as terrorism," he added.

===================================================

Grexit? It would be terrible to see an end to the happiness that this union has brought.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4148
Shale drillers’ hedges set to expire

"The hedges staved off an acute shortage of cash for shale companies and helped keep lenders from cutting credit lines, many of which are up for renewal in October. With drillers burdened by interest payments on $235 billion of debt, $89 billion of it high-yield, a U.S. regulator has warned banks to beware of the “emerging risk” of lending to energy companies."

robie robinson's picture
robie robinson
Status: Diamond Member (Offline)
Joined: Aug 25 2009
Posts: 1182
saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4148
Report: Firm fees from Chicago schools borrowing tops $18M

Report: Firm fees from Chicago schools borrowing tops $18M

phecksel's picture
phecksel
Status: Silver Member (Offline)
Joined: May 24 2010
Posts: 204
We are leasing a Ford CMax

We are leasing a Ford CMax Plug in hybrid.  If it wasn't for the smoking hot deal caused by the govt incentives, then it wouldn't be in the garage.  For my wife, it's a perfect car, she can go for months in the spring through fall months without adding gas.  Winter, not so much.  Battery life is seriously reduced and running heat just trashes battery life.  She still has the long drive capability on the gas engine, but electric around town is fantastic.

robie robinson's picture
robie robinson
Status: Diamond Member (Offline)
Joined: Aug 25 2009
Posts: 1182
We have several old

diesels (one is a'77 mercedes) when they don't work anymore we'll use one of our Suffolk Punchs and a wagon. They're comepletely solar capable. OBTW "Kelsey" is getting Eyke Sovreign as a BFWB

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Why Iceland prevailed.

After careful consideration I post his to emphasize the importance of knowing who has got your back.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Why Iceland prevailed.

After careful consideration I post his to emphasize the importance of knowing who has got your back.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4148
Greek referendum: LIVE REPORT

Greek referendum: LIVE REPORT

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4148
Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2832
Call me skeptic

I will believe it when I see it.

"Give me control of a nation's DieBold machines, and I care not who votes for what."

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