Weekday NEWS to Comfort the Disturbed and Disturb the Comfortable.
Thurs 10.01.2009
Fed may boost rates while economy still weak: Kohn The Federal Reserve may need to begin to pull back its extensive support for the weak U.S. economy before it has healed enough to substantially lower the jobless rate and get factories working again, Fed Vice Chairman Donald Kohn said on Wednesday. "Tightening (monetary policy) while there's still slack in the economy is something that we have to do every time," he told a monetary policy conference at the Cato Institute. Kohn said the Fed -- the U.S. central bank -- would base its actions on its forecast for the path of the economy, and would not wait for clear evidence the recovery has taken hold:
Foreclosures, Delinquencies Continue to Rise Lenders stepped up efforts to help strapped borrowers during the second quarter of 2009, but their actions weren't enough to stem rising mortgage delinquencies and foreclosures, a federal banking regulator reported Wednesday. Since the first quarter of 2009, actions to rescue borrowers from foreclosure increased nearly 75%, as lenders ramped up their participation in the government's loan modification program, the Office of the Comptroller of the Currency said. Such actions, which totaled 440,000 during the quarter, once again climbed more quickly than new foreclosures.
Foreclosure blight: The cleanup crawls along Washington put up billions to save blighted areas by buying abandoned homes. But states and cities are having trouble getting properties away from banks. A controversial $3.9 billion federal program aimed at saving neighborhoods blighted by foreclosure is hitting hurdles that could threaten its effectiveness. The Neighborhood Stabilization Program, passed by Congress last year, gives states and localities money to acquire and rehabilitate abandoned properties. The big problem: officials are having trouble getting their hands on those houses, which are being scooped up instead by private investors and homebuyers at rock-bottom prices.
Weak Economy Still Pushing Foreclosures, Delinquencies The number of home foreclosures in process and delinquent mortgages rose during the second quarter, while home retention actions also increased, U.S. bank regulators said on Wednesday. Foreclosures jumped 16 percent to 2.9 percent of serviced mortgages, while home retention actions such as loan modifications rose 21.7 percent, the Office of the Comptroller of the Currency and the Office of Thrift Supervision said in a report.
Thomas Sowell - Obama's Economic Policy
50% Of Rescued Mortgages Have Re-Defaulted The latest data from the Office of the Comptroller of the Currency (OCC) shows that over 50% of homeowners who had their loans previously modified in order to avoid foreclosure have re-defaulted. This seems like an awfully high failure rate.
Treasury: 2 firms have been cleared to start buying toxic bank assets The Treasury Department said Wednesday that two large investment funds have raised the minimum amounts needed to begin purchasing toxic assets from banks, finally launching this part of the government's financial rescue effort. Invesco and the TCW Group both cleared the $500 million target to begin operations to purchase toxic assets, according to Treasury. They are among nine firms that received initial approval to participate in the program earlier this year. Treasury said it expected the other seven firms would be cleared to begin operations in the next month. The goal of the program is to rid banks of bad loans so they can resume more normal lending, which is key for sustaining any economic recovery.
No Way Has Housing Bottomed, Says David Levy Bulls are beside themselves about the recent performance of the Case Shiller house-price index: Prices have risen for three straight months! This happy (if short) string of data has given rise to the widespread belief that the housing bust is over, that buyers can safely return, that folks who want to sell their houses are smart to "rent for a year until the market has come back." Keep dreaming, says David Levy, of the Jerome Levy Forecasting Center. House prices have plenty further to fall.
Peak gold and weak dollar means $2,000+ A highly regarded resource sector expert who discusses his field fervently, Byron King is unconvinced that the recession is behind us, he is equally sure that the "bottomless pit" mentality of stimulus spending will wreck the dollar. Those are among the reasons he sees $2,000-per-ounce gold on the not-too-distant horizon.
Gold Well Supported in Mid to High $900/oz Region Gold is currently trading at $1,001.80/oz and has bounced from a low of $991/oz and continues to follow currency movements. This week is the first week of the new Central Banks' Gold Agreement, which caps gold sales from official reserves. The third CBGA pact, which will run until September 2014, will limit gold sales to 400 tonnes a year, down from 500 tonnes from 2004-2009 pact. Western central banks are increasingly reluctant to deplete their gold reserves and with central banks internationally becoming net buyers of gold (particularly the Chinese in what is becoming known as the 'Chinese gold put'), the yellow metal is likely to be well supported in the mid to high $900/oz region.
Gold Consolidates Around $1000/oz Gold continues its consolidation around the highly psychological $1000/oz level. A more protracted decline in gold was avoided this week after a sizable depreciation of the Dollar against both the Euro and the Pound over the last couple sessions. However, we maintain our negative trend outlooks on these major Dollar crosses for the time being, meaning a downward pressure in gold persists. We're witnessing a battle of the bulls and the bears across the marketplace, highlighted by gold's fluctuation around $1000/oz. While it seems the downtrend is gaining traction in major Dollar pairs, the bulls continue to keep the S&P's head above water amid mixed global economic data and a pickup in M&A activity. The strength in U.S. equities is the counterbalance against a strengthening Dollar, holding gold above 9/10 lows and our multiple uptrend lines.
Gold push higher, dollar consolidates Despite gold push higher past Wednesday, greenback managed to stay in range against major rivals, if we took commodity currencies out of the equation. With Wall Street slightly down regional shares markets are expected to move in tight ranges, and even lower, ahead of Thursday and Friday U.S. reports. EUR/USD quotes around 1.4640, contained to the upside by 1.4680 area strong static area, and by 1.4600 38.2% retracement of daily 1.4190/1.4843 rally. GBP/USD back under 1.6000 after strong retreat from 1.6110 key resistance zone, needs to clear the 1.5920 level to regain downside strength.
Gold Sets New Monthly Record in Dollars, "Panic Buying" Absent THE PRICE OF GOLD moved back above $1000 an ounce Wednesday morning in London, heading for its best-ever monthly average in Dollar as the US currency lost 3.5% of its forex value from the end of August. Asian shares finished the day higher, but Tokyo's Nikkei's closed September down 2.5% on the month. An IMF report claimed that "Risks to the global financial system have subsided as a result of unprecedented policy actions and a nascent global economic recovery", but European stock markets gave back early gains despite news of a drop in German unemployment.
Gold reaches for best quarter since 2008 Analysts expect bullion to rise 7% for the July - September quarter Gold firmed on Wednesday and was poised to post its best quarterly performance since the first quarter of 2008, helped by dollar weakness and technical momentum. Spot gold XAU= was at $996.30 per ounce at 0358 GMT, up 0.6% against the notional close in New York of $990.70, supported by Wednesday's retreat in the greenback.
Gold, Silver Post Biggest Gains in Four Weeks as Dollar Slumps Gold and silver prices posted the biggest gains in almost four weeks as the dollar slid, sparking demand for the metals as alternative investments. The greenback dropped as much as 0.8 percent against a basket of six major currencies. This quarter, gold jumped 8.8 percent, the most since the three months ended March 31, 2008. The metal has climbed 14 percent this year, while the dollar was down 5.7 percent.
Probability of high inflation ahead and value of gold On one hand, the deflationists are claiming that given the extremely high debt levels in the West, further inflation is impossible. On the other side of the argument, many proponents of inflation are calling for Zimbabwe style hyperinflation. In this business, everyone is entitled to their opinion; however it is my contention that we will get neither deflation nor hyperinflation. If my assessment is correct, once business activity picks up, our world will have to deal with high inflation.
Investors refuse to dump gold Investors' new mantra is gold and realty. In India, always conventional wisdom favoured that gold and realty prices must go up in the long run for the simple reason that they can never come down over such a period. Even rural India considers both of them to be safe investments and this is ingrained in Indian psyche. They also help to buffer against inflation and bring in capital appreciation to levels comparable with those on the stock market.
Is Gold a Reasonable Investment or Not? This essay rounds up arguments for gold as a reasonable investment. Commentators such as Ambrose Evans-Pritchard and Byron King argue that China's hunger for gold will put a floor on gold prices. Specifically, they argue that China will "buy the dips" in gold prices, effectively putting a minimum on how low gold prices can go. It is conventional wisdom that gold is a hedge against inflation.
The Triple Breakout in Gold and Natural Gas Gold Stocks Index – The Leading Indicator for Gold Bullion I watch the price of gold stocks very closely because when there is large divergence from the price action of gold bullion I can get in a trade before the general public does. Tuesday we saw gold stocks put in a powerful rally yet gold bullion did not move much. This told me there was going to be some positive action Wednesday in gold and there was a very nice rally, indeed. This monthly chart of gold stocks shows a monthly breakout which is exciting to see. Most rallies last between 3-6 months on a breakout like this. That being said we could still have another 1-3 months of sideways price action as gold bullion tries to clear out the over head supply.
Gold Market Manipulation Smoking Guns and Monetary Power The transcending value seen in the Dollar has lost its foundation..." A SHORT SERIES of secret memos, published and dissected at ZeroHedge, provide the "smoking gun" of gold-market manipulation. Apparently. And given this little slew of dusty archive-digging – throwing up three documents from 1968 to 1975, each one declassified within thirty years – then "If over 40 years ago the Fed and the members of the gold 'Pool' were openly intervening in the gold market, one can only imagine what the situation is now..."
Peter Schiff September 27 2009 CNN - Your Money
Could Gold Perform Well In a Deflation, Contrary to Commonly-Accepted Wisdom? . . . . The stock of the biggest U.S. gold company - Homestake - soared during the Great Depression. Gold bugs argue that Homestake's success proves that gold does well during periods of deflation. "Homestake stock sold for about $65 per share in 1929. By 1933, the average stock price for Homestake was around $370. This represents a gain of more than 450% over the course of four years. The Dow Jones Industrial Average fell 89% over the three years between its 1929 peak to its 1932 bottom. Not only did stock prices increase for Homestake, but dividends also skyrocketed. In 1929, Homestake paid dividends of about $7 per share. By 1935, dividends had increased to $56, a staggering rate of 800% over six years. During these deflationary times, gold stocks not only retained their values but provided significant returns for investors. Deflation, the underlying crisis during the Great Depression, results in heightened gold stock prices. The reason why is that deflation diluted the value of the U.S. dollar while the price of gold was fixed by the government. . . . "
How Inflation Concealed the DJIA's Precipitous Decline over the Last Decade The DJIA may seem to have been stagnant since the bursting of Nasdaq bubble (give or take 10%, depending on when you measured the price level), but taking a closer look at these major market indices paints a much more clear picture of reality. Sure it is roughly the same level (hovering around 9-10k) around 2000, but nominal values have distorted the true performance and likely fooled many retail investors into thinking they have at least broke even (though even that is not a comforting feeling either). But as we have been able to ship much of our inflation abroad for the time being in addition to fooling the everyday investor into thinking inflation has been rather benign over this time period, most things in the investment world require taking a closer. Looking behind the smoke and mirrors often paints a much more disturbing picture, as is the case regarding the Dow Jones. To give a rough idea behind what I mean it is best to compare the performance of the DJIA to such things as Oil, Gold, Silver or a more mainstream comparison in the USD index.
Dollar Falls as Signs of Global Recovery Spur Demand for Risk The dollar dropped against most of its major counterparts and posted a second straight quarterly loss against the euro as evidence the global economy is recovering boosted demand for higher-yielding assets. The Swiss franc fell from almost a three-month high versus the euro on speculation the central bank sold the currency to curb its gain. The greenback declined as the International Monetary Fund cut its projection for writedowns and the European Central Bank said it will lend banks less than economists forecast in its second 12-month auction of unlimited funds.
Safe Harbour No More The US dollar (USD) is the world’s “reserve currency”. This status is arguably the greatest privilege enjoyed by the US as an economic entity. Most people don’t appreciate its significance. As the world’s reserve currency, the USD is used by other countries across the globe to back up their own respective paper currencies. In some cases, it’s as basic as a country stockpiling US dollars in their central bank vaults. When asked what supports their Pesos, Rubles, or Yen, the powers that be simply point to their pile of US dollars as proof of value. Upon reflection, it’s quite obvious how tenuous it is to back up one’s currency with a pile of paper issued by another country, but this is exactly how the world of international currency has worked for decades. And it has worked quite well…until now.
Marc Faber Dollar weakening the market
The ‘top dollar’ could soon be history The US consumer is no longer all-powerful – and it’s time to ‘re-balance’ The post-G20 fall-out continues. Robert Zoellick, president of the World Bank, warned yesterday that America's days as an unchallenged economic superpower are numbered and that the dollar is likely to lose its No. 1 spot as the global reserve currency to the euro and the Chinese renminbi. "The United States would be mistaken to take for granted the dollar's place as the world's predominant reserve currency," he warned, offering the euro as a "respectable alternative" for international transactions and predicting that the renminbi would "evolve into a force in financial markets".
Treasury Says It Will Release The TARP Payment Data Tomorrow or Friday The data on dividend and interest payments by TARP banks will be released tomorrow or Friday, a Treasury Department spokeswoman tells us. Meg Reilly of Treasury told us there has been no policy change regarding the release of the data. She declined to give any reason for the delay.
Are U.S. Treasuries A Bubble Ready To Pop? The standard theory is that the price/cost of risk-free long-term debt is a function of (a) the cost of short-term debt plus (b) some function of the market's anticipation of the likely course of inflation or deflation over the term of the debt. Governments (the Fed) can control short-term rate but they are at the mercy of markets to fix long-term rates. And of course markets are "efficient", unless of course there is a "bubble", when...Err...they are not. But then US Treasuries cannot be a bubble - who ever heard of such an idea!
Kohn plays down tightening challenge Fed has faced the question of when to tighten before, he says A leading voice at the Federal Reserve played down the complexity of the challenge facing the central bank on the question of when to pull the trigger to hike interest rates, saying that the situation was not so different from past episodes. "The headache isn't that much different than usual," Kohn told an audience of monetary policy experts gathered at the Cato Institute, a conservative think tank. The timing will be tricky, but do-able, he said. "Given the highly unusual economic and financial circumstances, judging when the time is appropriate to remove policy accommodation, and then calibrating that removal, will be challenging," Kohn said. Read his prepared remarks.
G20 Outmuscles G7 on Currency Issues Group of 20 leaders say they want to rebalance the world economy but getting them to accept a weaker U.S. dollar in the process could prove a lot to ask. That's especially true now that the Group of 20, which includes emerging markets like China and India, has supplanted the Group of Seven rich countries as the forum for managing the global economy. In fact, coordinating currency policy of any kind may get a lot harder if it requires getting 20 countries, with disparate interests and priorities, to pull in the same direction.
Future of the Dollar CNBC talks about the death of the Dollar and the increase in the price of Gold, how the IMF will step in and help with the slow and controlled decline of the American Dollar. National Security Issues are also discussed.
Greenspan Sees Growth Slowing as Stocks ‘Flatten Out’ Former Federal Reserve Chairman Alan Greenspan said he sees the U.S. economy slowing next year as the surge in stocks comes to an end. “The odds are we flatten out,” Greenspan said today in a Bloomberg television interview, referring to the equity market. “That flattening out will put some sort of dull face on 2010.”
Bernanke Urges ‘Strong’ Consumer Financial Protection Federal Reserve Chairman Ben S. Bernanke will tell lawmakers that protecting consumers of financial services is “vitally important,” while omitting prior criticism of an Obama administration proposal to shift such powers from the Fed to a new agency. “It is vitally important that consumers be protected from unfair and deceptive practices in their financial dealings,” Bernanke says in testimony obtained by Bloomberg News and prepared for a hearing tomorrow of the House Financial Services Committee. “Strong consumer protection” helps preserve savings and promote confidence in financial firms and markets, he said.
Red October Get ready for next month. I always find myself approaching October with a little trepidation. As soon as all those 3rd quarter earnings (or lack thereof) start coming in we could be in for quite a shock. It just seems that surprises of the worst kind show up in the stock market in Octobers past (especially the most recent one).
Beware the Current Bull Market in Derivatives The Dow is near 10,000 again. The business press is full of stories about the resurgence in mergers, IPOs and even so-called blank check companies. There’s one statistic, however, that should give investors pause: the growth in the total dollar value of derivative contracts at the top too-big-to-fail banks in the United States. In the second quarter of this year, the notional value of derivatives contracts at JPMorgan Chase (JPM), Goldman Sachs (GS), Bank of America (BAC) and Citigroup (C) increased by $1.92 trillion, to $191 trillion. Shockingly, Citi is responsible for most of that gain from the end of the first quarter.
Jim Rogers The Third US Stimulus Package (NWO SERIES/ THE TRUTH ABOUT THE ECONOMY)
IMF sees another wave of bank losses International Monetary Fund says new writedowns of about $1.5 trillion needed globally through the end of 2010. The International Monetary Fund on Wednesday lowered its estimate for global writedowns for banks and other financial institutions to $3.4 trillion but warned that loan losses were set to rise as unemployment grew. In April the IMF estimated in its Global Financial Stability Report that global bank losses could reach $4 trillion but said it cut the figure by $600 billion to reflect rising securities values and new methodology for calculating writedowns.
The FDIC Just Doesn't Get the Economic Situation FDIC insured institutions are required to prepay their estimated quarterly risk-based assessments for the 4th quarter of 2009 and for all of 2010, 2011 and 2012 by the end of 2009. This is FDIC MADNESS! The assessments will total about $45 billion, but that’s not enough to bring the fund back to a ratio of 1.15 versus insured deposits. This alignment must be completed by the end of June 2013 five years after the Deposit Insurance Fund dipped below 1.15 at the end of June 2008. We were at 0.22 at the end of Q2 2009. Right now the DIF is in arrears by $4.7 billion.
I.M.F. Calls for Overhaul of Financial System The International Monetary Fund said Wednesday that “the global economy has turned a corner” after the harrowing start to 2009, but that only a thorough restructuring of the financial system could prevent a return to crisis and pave the way for solid growth within the next 18 months. However, the I.M.F. did say that its estimate of total writedowns at banks and other financial institutions had declined by $600 billion, from $4 trillion six months ago to $3.4 trillion today, in part because the value of complex securities at the heart of the crisis has stabilized.
IMF: Another $1.5 Trillion in Bank Writedowns Coming The International Monetary Fund on Wednesday lowered its estimate for global writedowns for banks and other financial institutions to $3.4 trillion but warned that loan losses were set to rise as unemployment grew. In April the IMF estimated in its Global Financial Stability Report that global bank losses could reach $4 trillion but said it cut the figure by $600 billion to reflect rising securities values and new methodology for calculating writedowns.
Bank-Bailout Fund Faces Years in Red as Failures Jolt System The government said the fund that protects consumer bank deposits has fallen into the red and will remain there into 2012, a pointed symbol of how the aftershocks of the financial crisis will reverberate for years as banks continue to fail at a high rate. The negative balance is a headache for the Federal Deposit Insurance Corp., which runs the fund. On Tuesday, it proposed the unprecedented step of having the banking industry prepay $45 billion in fees by the end of the year to give the government more breathing room to handle future failures.
Ron Paul on Daily Show End the Fed edition
CIT Group again on brink of collapse CIT Group shares plunge on report lender is again on brink of bankruptcy CIT Group Inc. shares plunged Wednesday as the commercial lender is reportedly trying to craft an exchange that would cut its debt and offer bondholders an equity stake in the company in a bid to avoid bankruptcy. Shares of the New York-based financial firm, one of the largest U.S. lenders to small and midsize businesses, fell 85 cents, or 38.6 percent, to $1.35 in morning trading.
Bank of America Chief Resigns Under Fire Lewis to Leave at Year End as Lender Faces New York Probe of Merrill Deal; Fed Up After a Year of Criticism; Successor Unclea After scrambling for months to keep his grip on the bank he helped build from a scrappy Southern outsider to the nation's largest in assets, Bank of America Corp. Chief Executive Kenneth D. Lewis said he will resign by year end. The 62-year-old Mr. Lewis, who has led the Charlotte, N.C., bank since 2001, notified the board of his decision Wednesday. A person close to him says Mr. Lewis was fed up with the criticism that haunted him following the takeover of Merrill Lynch & Co.
Bank of America CEO Ken Lewis to retire Beleaguered chief executive Ken Lewis to leave after tumultuous tenure. Bank under fire for its merger with Merrill Lynch last year. Ken Lewis, the beleaguered CEO of Bank of America, announced Wednesday that he will retire at year's end. Lewis, who was stripped of his chairman title in April, will also step down from the board. No successor was named. "Bank of America is well positioned to meet the continuing challenges of the economy and markets," said Lewis, 62. "I am particularly heartened by the results that are emerging from the decisions and initiatives of the difficult past year-and-a-half. The Merrill Lynch and Countrywide integrations are on track and returning value already."
Can an Accounting Trick Rescue the FDIC? Can an accounting trick save the Federal Deposit Insurance Corp.? That's what FDIC chief Sheila Bair and Co. seem to be hoping. On Tuesday, the cash-depleted FDIC hatched a plan to require banks to prepay three years of quarterly fees. The FDIC expects to quickly generate $45 billion in cash, an amount it normally would've had to wait years to get its hands on. But in a quirk of accounting rules, the banks won't have to expense the upfront payments this year, even though they will be handing over the cash in the next few months — in amounts that could run into the billions of dollars for some banks. The FDIC says the move will solve its liquidity problems — the FDIC officially slid into the red this week for the first time since 1991. But it's not certain whether the plan will boost confidence in the banking system, as the FDIC seems to hope.
FDIC bailout, German elections
Fractional Reserve Banking Made Easy The paper bills in our wallet are not money. And they are not Notes as in "Federal Reserve Note" written on the top of the bill. They are actually just Tokens. Federal Reserve Tokens, if you like, is what should be written on top of the bills. They are not redeemable for anything other than themselves. And they represent only one thing: Your belief in their value. Hopefully, your belief extends to the next person you try to give them to. The only real use for them is paying your taxes to either the state or federal government. You can be sure, however, that both will stop accepting them as payment even for taxes if you and I stop believing in the paper bills.
private mortgage insurance volume hits record low The volume of private mortgage insurance written fell to a record low in August, according to data from the Mortgage Insurance Companies of America (MICA). The group, which includes the likes of MGIC, Genworth, Radian, PMI, and other heavy hitters, wrote just $5.77 billion in new insurance during the month, down from $7.5 billion a month earlier and $10.2 billion a year ago. The previous low was back in November 2008, when the group wrote just $5.83 billion in new mortgage insurance.
47% will pay no federal income tax An increasing number of households end up owing nothing in major federal taxes, but the situation may not be sustainable over the long run. Most people think they pay too much to Uncle Sam, but for some people it simply is not true. In 2009, roughly 47% of households, or 71 million, will not owe any federal income tax, according to estimates by the nonpartisan Tax Policy Center. Some in that group will even get additional money from the government because they qualify for refundable tax breaks.
U.S. retail landlords less willing to negotiate While retailers are likely to face another tough holiday season, it may be much more difficult for them to extract any concessions from their landlords to help ease the ride, a top restructuring expert said on Tuesday. "We're seeing now that landlords have pulled back some from negotiating," Kenneth Frieze, who heads the business development and marketing groups at asset recovery firm Gordon Brothers Group, said at the Reuters Restructuring Summit in New York. Earlier this year, as some retailers were on the cusp of bankruptcy, many demanded that landlords reduce their rent, saying they could not survive without such concessions.
U.S. Q2 home foreclosures, mortgage delinquencies up The number of home foreclosures in process and delinquent mortgages rose during the second quarter, while home retention actions also increased, U.S. bank regulators said on Wednesday. Foreclosures jumped 16 percent to 2.9 percent of serviced mortgages, while home retention actions such as loan modifications rose 21.7 percent, the Office of the Comptroller of the Currency and the Office of Thrift Supervision said in a report.
Loan Delinquencies Rise Lenders are doing more to help borrowers, but loan delinquencies are rising faster than ever, reports CNBC's Diana Olick.
Oil above $67 despite high inventories Oil rises above $67 in European trade despite increase in US crude inventories Strengthening stock markets in Europe helped push oil prices above $67 a barrel Wednesday despite data showing U.S. crude inventories rose for a third week, suggesting consumer demand remains weak. By mid-afternoon in Europe, benchmark crude for November delivery was up 69 cents at $67.40 in electronic trading on the New York Mercantile Exchange. The contract fell 13 cents to settle at $66.71 on Tuesday.
GM to shut down Saturn after Penske walks away GM to shut down Saturn after Penske terminates talks with GM on uncertain future assembly General Motors Co. said Wednesday it would shut down its Saturn brand after an agreement with Penske Automotive Group Inc. to acquire it fell apart. Penske, citing concerns of whether it could continue to supply vehicles after a manufacturing contract with GM ran out, ended talks with GM Wednesday to acquire the brand. GM CEO Fritz Henderson said in statement that Saturn and its dealership network will be phased out.
Credit Card Noose Tightens in Deflation When B of A spokesman Lawrence DiRita turned up on the evening news not long ago to assure listeners that his employer was willing to work on a case-by-case basis with troubled customers, we decided to call his bluff. Would DiRita, formerly a high-ranking official in the Defense Department, go to bat for the borrower whose “teaser” loan from the bank was about to shoot up overnight from 0% to 12.24%? Everyone with a credit card has been offered such a loan at one time or another, and it was once possible to initiate one at rates varying from 0% to 4%, with no additional fee for the balance transfer. Not any longer, though.
Alan Grayson on the GOP Health Care Plan: "Don't Get Sick! And if You Do Get Sick, Die Quickly!"'
U.S. To Break Up Soon? According to Macedonian Radio and Television On-line (MRT), a Russian professor predicts the United States will fall apart in July 2010. MRT reports, "'Mr. Obama is similar to the last Soviet leader Mikhail Gorbachev. Gorbachev was also making great promises for the Soviet Union, but the situation was only getting worse,' he said. By next summer, according to Professor Panarin, the US will disintegrate into six blocs--and everyone will get their piece. 'The probability that the United States of America fall apart in July 2010 is more than 50 percent,' said Igor Panarin, Professor at Moscow's Diplomatic Academy within the Russian Federation's Ministry of Foreign Affairs.
Twilight of Pax Americana Since the end of WWII, the world has depended on the United States for stability. But with American military and economic dominance waning, capitalism and global security are threatened. The international order that emerged after World War II has rightly been termed the Pax Americana; it's a Washington-led arrangement that has maintained political stability and promoted an open global economic system. Today, however, the Pax Americana is withering, thanks to what the National Intelligence Council in a recent report described as a "global shift in relative wealth and economic power without precedent in modern history" -- a shift that has accelerated enormously as a result of the economic crisis of 2007-2009.
John Ensign: Public option would be popular, so let’s not do it So goes Ensign’s opposition, stated in Senate panel debate Republican Sen. John Ensign delivered one of the more curious arguments against a government-run, public health care option during a long and lofty Senate committee debate Tuesday. People might like it and use it. Then it would become popular, and too big to fail. And the government would have to support it. “Does anyone really believe this Congress will let this government program go away if it has a constituency?” Ensign asked his colleagues on the Senate Finance Committee. “To have a large program like this, once it’s started, you’re never going to get rid of it.” The public option would be a government-run health care alternative to the private insurance market. It’s intended to provide an option for those currently without health insurance, and, through competition, rein in rising insurance costs.
Prescriptions now biggest cause of fatal drug overdoses Debra Jones didn't begin taking painkillers to get high. Jones, 50, was trying to relieve chronic pain caused by rheumatoid arthritis. Yet after taking the painkiller Percocet safely for 10 years, the stay-at-home mother of three became addicted after a friend suggested that crushing her pills could bring faster relief. It worked. The rush of medication also gave her more energy. Over time, she began to rely on that energy boost to get through the day. She began taking six or seven pills a day instead of the three to four a day as prescribed.
Senate health-care debate eyed for week of Oct. 12 Anti-abortion provisions rejected in Finance Committee Senators could begin debating a sweeping health-care bill the week of Oct. 12, the Senate majority leader said Wednesday, as members of the Finance Committee pressed on with a bill-writing session and turned back amendments related to abortion. Members of the finance panel have gotten to a little more than 80 amendments out of more than 500 on a sweeping health-care overhaul proposed by Max Baucus, D-Mont., the committee's chairman. Wednesday, they rejected amendments offered by Sen. Orrin Hatch, R-Utah, that would have strengthened anti-abortion parts of the bill. Senators also voted on Wednesday to increase penalties on employers that do not offer health insurance to their workers.
Senate Democrats unveil climate bill calling for a 20% cut in emissions Leading senators say ambitious climate change bill will give America a chance to reclaim its energy independence Democratic leaders took on the epic challenge of getting the US Senate to act on global warming today with the formal unveiling of a bill proposing an ambitious 20% cut in greenhouse gas emissions. Senate Democrats turned out in strength for today's launch, which was seen at home and abroad as a crucial moment for advancing Barack Obama's agenda.
Israel rethinks anti-Iran warnings Suddenly, the Iranian "existential threat" seems to have receded from Israel's horizon. It began with a bombshell Sept 18 newspaper interview in which Defense Minister Ehud Barak asserted that a nuclear-armed Iran could not destroy the Jewish state. Similar public remarks followed from the general in charge of all military operations. Even hawkish Foreign Minister Avigdor Lieberman now sounds skittish about his government's long hinted-at willingness to go to war rather than see an enemy get the means to make a bomb.
U.S. May Seek Bilateral Talks With Iranians World Powers Meeting on Nuclear Issue The United States hopes to launch a process here Thursday that could rein in Tehran's nuclear ambitions and possibly reorient Iran's role in the world, though U.S. officials are skeptical that Tehran will act decisively when its diplomats sit down for long-awaited discussions with world powers. U.S. officials signaled Wednesday that they will seek a rare bilateral meeting with Iranian diplomats during the discussions. The talks between Iran and major powers, expected to last through the day, have been structured to allow for both group meetings and informal, bilateral sessions with Iran; a senior administration official said the latter would be "an opportunity to reinforce the main concerns we will be emphasizing in the meeting." He spoke on the condition of anonymity because of the diplomatic sensitivity ahead of the talks.
Both Sides to Blame for the Georgia-Russia War After last year's war between Russia and Georgia, which left at least 250 people dead and parts of Georgia in ruin, both countries were eager to point the finger of blame at one another for starting the conflict. On Wednesday, an independent investigating team issued a highly anticipated report saying that neither country can escape fault. In the 1,100-page report, the investigators said that Georgia fired the first shots in the August 2008 conflict when it launched an attack on the breakaway region of South Ossetia, which the team deemed "unjustifiable" under international law. But the report, which was sponsored by the European Union, said the attack followed months of Russian provocation, including a heavy military build-up in the region and increased support for separatist movements in both South Ossetia and Abkhazia, another breakaway region of Georgia.
Tariff May Further Strain U.S.-China Trade Companies that import solar panels to the United States are facing up to $70 million in unexpected tariffs. The bill comes at a time when the industry is already struggling and could hurt both foreign solar panel makers and foreign and American distributors. It could also further strain trade relations between the United States and China. The issue began with a short letter to United States customs officials last December from the small American subsidiary of a Spanish energy company. The subsidiary, GES USA, wanted to know what the tariff would be to import certain solar panels from China.
Steve Quayle on Alex Jones Tv 1/6: Red Dawn in America!!
Steve Quayle on Alex Jones Tv 2/6: Red Dawn in America!!
Steve Quayle on Alex Jones Tv 3/6: Red Dawn in America!!
Steve Quayle on Alex Jones Tv 4/6: Red Dawn in America!!
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Steve Quayle on Alex Jones Tv 6/6: Red Dawn in America!!
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