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EmailFriday, November 20, 2009, 11:49 am, by DailyDigest
- Country At A Crossroads
- Inflation, High Taxation or Default
- Gun sales shoot up amid America’s fear of rising crime and terrorism
- Rep. DeFazio: Fire 'Timmy' Geithner
- Gold's 'Money' Value is $4,000 to $11,000: Market Strategist
- Biden On The Bailout: Socialism For The Rich, Capitalism For The Poor
- Student Fee Hike Fuels Mass Protest At UCLA
- Housing Crisis Hits A Whole New Level
- Breaking Down Fannie Mae's Deed For Lease Program
- Judge Rules Gov't May Be Liable For Billions In Katrina Claims
- Food Banks Struggle Amid Record Demands
- Maine's New Wind Plant Goes Online
- Houston Launches Program For Electric Car-Charging Stations
- Clean Green Texas
- New Twist In Vertical Gardening: 'Edible Walls'
Economy
Country At A Crossroads (pinecarr)
“For the moment, the cheap liquidity has saved Wall Street. To the delight of the Goldman Sachs, et al., the Fed has created a boom in financial assets, including equities, bonds and commodities. These rallies have stimulated a nearly universal belief that the worst has past. This feel-good attitude could be clearly seen on a recent cover of The Economist that read: "After the Storm - How to Make the Best of the Recovery."
But, to many people, life looks increasingly desperate. Official U.S. figures admit to some 15 million unemployed. Despite the massive stimulus packages, American consumers are still in shock and not spending as they once did. Already, the fall in consumer demand is larger than that of the early 1930's. The authorities now face a moment of truth: admit that they don't have the power to bring the consumer back to life or redouble their efforts, consequences be damned.
Inflation, High Taxation or Default (nncita)
Knowing that nearly 30 percent of Western countries’ economies are now made of "economic zombies" (financial institutions, companies and even states, whose signs of life are only due to central banks’ liquidity injections), it is possible to confirm the inevitability of the “impossible recovery”. The international and social (within each country) « everyman for himself » rule is beginning to prevail, as well as a general impoverishment of the ex-Western world, United States in the first place. In fact the West is being scuttled by leaders unable to face the reality of a post-crisis world, who keep resorting to methods from yesterday’s world despite their proved inefficiency.
Gun sales shoot up amid America’s fear of rising crime and terrorism (nncita)
Mike Golden, chief executive at Smith and Wesson, is sceptical about the so-called Obama effect on gun sales, believing that his company’s booming revenues have “nothing to do with the administration” and everything to do with the economy. “People are worried about personal protection with unemployment and crime on the rise,” he said in a presentation to investors, adding that 30 per cent of customers who had bought the company’s guns in the first half of this year were “first-time gun owners”, up from 9 per cent nine a year earlier.
Rep. DeFazio: Fire 'Timmy' Geithner (nncita)
DeFazio said that there is a growing consensus among the Congressional Progressive Caucus that Geithner needs to be removed. He added that some lawmakers were "considering questions regarding him and other economic advisers"
Gold's 'Money' Value is $4,000 to $11,000: Market Strategist (nncita)
In the '80s, our creditors were Japan, Europe and the [Arab states]—and the three of them were utterly dependent on the U.S. for their national security. China is now the U.S.' main creditor and they don’t depend on America for national security, said Rickards. So the U.S. "doesn’t have a lever" to keep China "in line" economically or force Beijing to buy Treasury securities.
Biden On The Bailout: Socialism For The Rich, Capitalism For The Poor (M.W.)
In an interview with Jon Stewart on Comedy Central's The Daily Show, VP Joe Biden acknowledged the anger and frustration many taxpayers feel over the way financial institutions seem to have favored status in Washington DC (Video).
Student Fee Hike Fuels Mass Protest At UCLA (M.W.)
Officers in riot gear stood by as hundreds chanted and marched to protest 32% fee Increase for UC students.
Housing Crisis Hits A Whole New Level (M.W.)
What began as a crisis among home owners with bad credit and subprime mortgages has spread to the those with traditionally safer fixed-rate mortgages.The Mortgage Bankers Association said Thursday that a record one in seven U.S. mortgages were in foreclosure or delinquent. Worsening the problem, millions of unconventional mortgages are due to reset in the next two years.
Breaking Down Fannie Mae's Deed For Lease Program (M.W.)
Fannie Mae recently announced a new program designed to keep mortgage-challenged borrowers in their homes. The Deed for Lease program allows qualified borrowers to relinquish the deed to their property and rent their home at the market rate for 12 months.Our team has broken down the program to show you what to expect for borrowers, tenants and property managers.
Judge Rules Gov't May Be Liable For Billions In Katrina Claims (M.W.)
The federal government could be vulnerable to billions of dollars in claims after a judge ruled that the Army Corps of Engineers' failure to properly maintain a navigation channel led to massive flooding in Hurricane Katrina.
Food Banks Struggle Amid Record Demands (M.W.)
Hunger relief advocates came to Congress on Thursday and painted a bleak picture of a country struggling to meet an increased need for food assistance at a time of high unemployment. "In our 42-year history, we have never witnessed a demand for our services like we are seeing now."
Energy
Maine's New Wind Plant Goes Online (M.W.)
Maine's $14.5 million Fox Islands Wind project officially goes online today with a ribbon-cutting event, marking the completion of Maine’s first island wind project; the largest community-owned wind project on the East Coast.
Houston Launches Program For Electric Car-Charging Stations (M.W.)
Mayor Bill White and local electricity retailer Reliant Energy have launched a plug-in hybrid program that includes 10 vehicle-charging stations around the city. Seven of the stations will be available to the public, and electricity will be free the first year.
Clean Green Texas (M.W.)
Move over California. The amazing growth of Texan wind power proves renewables can be a real global player Whenever you hear someone say that renewable energy will never account for a significant proportion of global energy consumption, just refer them to Texas.
Environment
New Twist In Vertical Gardening: 'Edible Walls' (M.W.)
Edible walls — metal panels filled with soil and seeds and hung vertically, may sound like a piece of Willie Wonka’s chocolate factory. In fact, they are the latest development in green roof technology.
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"More than half of the $9 trillion in debt that Uncle Sam is expected to build up over the next decade will be interest.
More than half. In fact, $4.8 trillion.
If that's hard to grasp, here's another way to look at why that's a problem.
In 2015 alone, the estimated interest due - $533 billion - is equal to a third of the federal income taxes expected to be paid that year, said Charles Konigsberg, chief budget counsel of the Concord Coalition, a deficit watchdog group."
"The office and warehouse project, now called Gateway Plaza, was previously owned by Preferred Real Estate Investments Inc. of Conshohocken, Pa. The company paid Royal Hold, Giant's Dutch corporate parent, $45 million for its 104-acre campus in 2006, when the grocery chain moved to new 53,556-square-foot headquarters in Metro East office park in Landover."
"Budget shortfalls pose a direct threat to millions of U.S. jobs, many in the private sector, as state and local governments lay off workers and cut spending on contracts and other business services, a think tank said on Thursday.
State and local governments will have to raise taxes and cut spending in the current and next two fiscal years to cover shortfalls totaling $469 billion, according to an Economic Policy Institute report."
"The formula the U.S. Labor Department designed to help it deliver timely, thorough monthly employment reports broke down in the heat of the financial crisis, miscounting the number of jobs by an estimated 824,000 in the year through March.
The most likely culprit is the so-called "birth-death" model, which the Labor Department uses to estimate how many companies were created or destroyed."
"Rhode Island – After 24 consecutive months of rising demand for shelter beds, advocates say urgent action is needed to prevent the homeless from being left to fend for themselves in the bitter cold this winter."
“All of our shelters are overflowing,” said Johnson. “We need to do something or I’m afraid we may see men freeze to death in the winter months.”
"Fourteen percent of all American mortgages are either delinquent or in the process of foreclosure and the outlook is that delinquencies will get worse before they get better, according to the latest Mortgage Bankers Association’s (MBA) National Delinquency Survey.
Job losses, not risky subprime loans, are driving up delinquencies and foreclosures to record levels. However, not until the economy begins creating more jobs than it terminates will the housing picture improve, said Jay Brinkmann, MBA’s Chief Economist."
"The study, which is based on a November report released by the Government Accountability Office, found that the average American taxpaying family has invested about $800 in the auto bailouts so far. It notes that government money provided to General Motors, Chrysler and GMAC – the financing subsidiary that supports sales at both – now stands at $78.9 billion."
"San Francisco Mayor Gavin Newsom on Thursday called the city's $500 million-plus deficit "staggering.""
"At this point, we don't have anything to cut but bone," Chiu said. "It's going to be the most challenging budget situation that anyone has ever seen (in San Francisco)."
"In one of the grimmest financial announcements ever made in Fresno's City Hall, Mayor Ashley Swearengin revealed on Thursday that the city must lay off 125 employees and close fire stations to try to reduce a $28 million budget deficit."
"And, the mayor said, things may get worse because the city faces a stunning $87 million deficit between now and 2015."
"To save $22,000, City Hall won't have its traditional conifer this year unless good Samaritan helps out"
"For the first time in memory, there'll be no Christmas tree at City Hall.
Along with the Christmas Star that's hung above Orange Avenue since the 1950s, the City Hall tree has been one of Orlando's most visible holiday traditions. But in a year when the city shed more than 200 workers to avoid a budget deficit, Mayor Buddy Dyer and the City Council decided a tree was a luxury. Not buying one will save the city about $22,000."
"ALBANY -- Lawmakers left the Capitol Thursday without a deal to close the state's $3.2 billion budget gap, and a report Friday will show that the state's cash crunch is getting even worse."
"Comptroller Thomas DiNapoli said his office will release a report that shows New York faces a cash-flow deficit of up to $1.4 billion in late December, higher than projections from Gov. David Paterson's budget office.
It means the state is running out of money to pay its bills, DiNapoli warned. Paterson's office last month predicted a $1.1 billion cash-flow deficit in late December."
"An additional $760 million in hoped-for state revenue evaporated in the latest economic forecast, and lawmakers began talking up the pros and cons of tax increases to help plug a budget shortfall now estimated at $2.7 billion."
"“I said last time (that) everything is on the table. I think I need a bigger table now,” Moore said."
"WASHINGTON — The Democratic-controlled House voted Thursday to add more than $200 billion to the deficit to prevent steep Medicare payment cuts to doctors, a move Republicans denounced as a political payoff."
"Doctors are facing a 21 percent reduction in Medicare reimbursement rates in January unless Congress acts first, the result of a flawed funding-formula that lawmakers have had to step in nearly annually to block in recent years."
"For Mark Lindberg, president of equipment manufacturer Young Corp., the 13.8 percent hike in Seattle electricity rates “couldn’t come at a worse time.”
Lindberg’s South Seattle company, which makes specialized attachments for heavy equipment, already has cut its work force from 45 to 35 during the recession, and slashed production in half."
"The White House on Thursday voiced its backing for U.S. Treasury Secretary Timothy Geithner after he endured a grilling before Congress over the costly bailout of insurer AIG, and one lawmaker urged him to resign.
"Secretary Geithner has helped steer the American economy back from the brink, and is now leading the effort on financial reform," said White House spokeswoman Jennifer Psaki."
...............In a show of how bad things really got at the meeting with Tim Geithner, here's an unreleased tape of our congress as Geithner entered the room.
Just finished watching Age of Stupid (1/9) - re-inforces CM's Crash Course. A sobering view.
I then clicked on BBC news to find exceptional flooding in North of England. (more videos on page) which re-inforced the film.
Not quite as bad as Huricane Katerina, but the film wasn't as good as this film of mine - I hope there's plenty of room on the Ark when the waters keep rising. My last ocean crossing was a bit crowded...
Groucho
The UCLA story is disheartening to say the least....
These are our young people who are simply trying to make a START and many of whom are going deeply into debt in this tragic economy, hoping that all will end well by the time they graduate.
Pittsburgh is also trying to impose a student tax to generate revenue for the city.
I love the information I find on CM not only from Chris but from the other's who participate. Now this is chilling but I can envision this happening....
THE DAY THE DOLLAR DIED
http://johngaltfla.com/blog3/2009/11/18/the-day-the-dollar-died/
Are you prepared?
File under: Very Curious Event
A London-based official at ICE said that the exchange is cancellingtrades on dollar index futures above 76.50, after a spike in the contact that saw it jump to 82.18. The official said they are still investigating the cause for the move. Recent trades showed the contract up 0.7% to 75.89.
http://www.economicpolicyjournal.com/2009/11/ice-cancels-dollar-spike.html
A couple other articles others might want to read...
10 Reasons to Believe That We're in a Depressionhttp://seekingalpha.com/article/174179-10-reasons-to-believe-that-we-re-in-a-depression?source=article_sb_popular
Bin Laden: Goal is to bankrupt U.S.http://www.cnn.com/2004/WORLD/meast/11/01/binladen.tape/
EDITORIAL: Get ready to bomb Iranhttp://www.washingtontimes.com/news/2009/nov/20/get-ready-to-bomb-iran/
BREAKING HUGE STORY ON GLOBAL WARMING FRAUD!
Sorry folks Al Gore took you for a ride and made untold millions doing it I wonder how he would look doing a perp walk?
http://market-ticker.org/authors/2-Karl-Denninger
http://www.investigatemagazine.com/australia/latestissue.pdf
Why is global warming an issue here? It didn't matter wether they falsified data or not, nothing was going to be done. The current economic model says we need to consume, destroy, and pollute more every year at an exponential rate.
Realistically, peak oil and resource depletion will play the big role, and man made climate change will likely make things worse. There have been some pretty dramitic changes in climit in the past, assuming it will always be like it is now is not a good plan.
Global warming is an issue here because if the cap N tax bill passes just see how much it affects each family in America. As a matter of fact we do have climate change here in Ohio 4 times a year. They call it Spring, Summer, Autumn and Winter. LOL
I really liked how Gore's group had to change from calling it Global Warming to Climate Change because they couldn't back their data.
http://finance.yahoo.com/news/Small-Florida-bank-shuttered-apf-1463147932.html?x=0&sec=topStories&pos=2&asset=&ccode=
Here's a fun math problem.....
You woulda thought the "assets" with a value of $80 million would have covered deposits, right? Marked to????
Remember, loot first - then burn.
Firejack, anthropogenic global warming (AGW) is an issue and a big one at that. If it is more religion than fact, if the preachers are fabricating, hiding or otherwise manipulating the data (as this hack into the climate center suggests) then consider this - the world is spending billions of dollars on a false theory. Billions that we don't have and even if we did could be used for better purposes (think Africa for instance). Furthermore, as Phantom13 points out, policy here and abroad is, as we speak, being fashioned to address AGW; if AGW does not really exist, what a waste! The Cap and Trade legislation heading down the pike will cost businesses lots of money (and according to Matt Taibi is a windfall for the giant sucking squid). Can American businesses large and small absorb the hit thet will result from cap and trade to correct a problem that does not exist?
Well think about it LoriS, if Al Gore hadn't invented the Internet, we would have never known.