Weekday NEWS to Comfort the Disturbed and Disturb the Comfortable.
Tues 12.29.2009
Patriot Radio News Hour Guest Host: Mark Call
Survey finds 'significant' anxiety about economy The majority of Americans say they still have "significant uncertainty and anxiety" about the nation's economy and are doubtful about a quick recovery in 2010. In a survey of 1,000 Americans by StrategyOne, 87 percent say the nation remains in a recession, despite economists' assertions, and 78 percent disagree with economists that the nation is on the rebound. Only one in four Americans polled said the economy will recover fully in the new year, and half say the economy won't be on track until the end of 2011 or 2012. Fifteen percent of respondents said they think the economy will never recover.
Brace For Impact: In 2010, Demand For US Fixed Income Has To Increase Elevenfold... Or Else As everyone is engrossed by assorted groundless Christmas (and other ongoing bear market) rallies, and oblivious to the debt monsters hiding in both the closet and under the bed, Zero Hedge has decided it is about time to present the ugliest truth faced by our 'intellectual superiors' and their Wall Street henchman who succeeded in pulling off Goal #1 for 2009 - the biggest ever bonus season (forget record bonuses in 2010... in fact, scratch any bonuses next year if what is likely to transpire in the upcoming 12 months does in fact occur).
Doug Casey on Bungling Ben . . . . Bernanke is always presented as a Ph.D., a scholar of the Great Depression, its causes, and how to cure such an economic downturn. But he hasn’t prevented an economic catastrophe – he’s done just the opposite of what needs to be done, and there’s going to be hell to pay. It’s quite perverse. Look at Alan Greenspan. In the 1960s, he was an acolyte of Ayn Rand and wrote a famous essay defending the gold standard, which I read in her book, Capitalism: The Unknown Ideal. And then he goes on to become the most inflationary Fed chairman in history until Bernanke superseded him.
Why I Fear for my Country For the first time I'm scared. I mean really scared. For the first time in my lifetime it looks like America may actually be coming to an end. As I traveled over the Thanksgiving and Christmas holidays I paid special attention to the public. At gas stations and shopping centers - I took the time to observe. We are doomed. These people have nothing, know nothing, and are not interested. Talk about rabble. As I spoke to members of my family at holiday celebrations - about topics foreign to me - like what's going on with their favorite TV show... my heart sank. No hope. As I browsed the web to see the most recent joke of a terrorist attack - just enough not to cause property damage but just enough to scare the cringing American soccer-moms - I just stared. The conversation in the background continued - I didn't participate.
Fannie, Freddie Changes Clear Way for 'Large-Scale' Buyouts The U.S. government's expanded capital backstops and portfolio limits for Fannie Mae and Freddie Mac increase "the prospect of large-scale" purchases by the companies of delinquent mortgages out of the securities they guarantee, according to Credit Suisse Group analysts. The Treasury Department announced Dec. 24 that the two mortgage-finance companies, which were seized by the U.S. almost 16 months ago, could tap an unlimited amount of capital for three years, up from as much as $200 billion each. It reworked caps on Fannie Mae and Freddie Mac's mortgage-asset portfolios to require the holdings to fall to $810 billion by Dec. 31, 2010, rather than about $690 billion.
U.S. may prop up housing further via Fannie, Freddie Unlimited support may presage more aggressive action in mortgage market The government's decision to provide unlimited support to Fannie Mae and Freddie Mac probably presages more aggressive action to prop up the U.S. housing market. The government may put a mortgage-modification effort, called the Home Affordable Modification Program, or HAMP, into overdrive in coming years, pushing for reductions in the principal outstanding on home loans overseen by Fannie and Freddie, Bose George, an analyst at Keefe, Bruyette & Woods, wrote in a note to investors Monday.
Fannie and Freddie: Wards of the State, Yet Management Receives Private Sector Pay Packages I was disappointed with the Christmas Eve ditties from Treasury and FHFA re: the Agencies. To be honest, I was appalled. The two releases contained significant information. The timing was obviously an attempt to slip in some bad news while everyone is drinking eggnog. Of course that backfired. The blogs, and yes, the MSM disintegrated those that sent the emails out on Christmas Eve. The smell that these announcements have created is not likely to go away anytime soon. If you are reading this you know the story. Treasury ponied up for another $200b for Fannie and Freddie and the management of these entities are getting serious paychecks.
Mortgage Anxieties Mean Limbo for Fannie and Freddie Fannie Mae and Freddie Mac, the linchpins of the American housing market, continue to bedevil the U.S. financial system. In February 2003, their regulator issued a report saying the companies were taking on too much risk by using implicit government backing to plunge deeper into the mortgage market. The government-sponsored enterprises would pose a systemic threat to the economy in the "remote" chance that either failed, Armando Falcon told the Bond Market Association the same day. The Bush administration, considering his report a potential threat to financial markets, asked him to resign.
pt 1- 12-24-09 Gerald Celente 2010 predictions
pt 2- 12-24-09 Gerald Celente 2010 predictions
Gold Bubble Debate: Is it wise to invest in gold? As 2009 is heading for a close, traders, investors and analysts are in the midst of mixed feelings of hope, dejection and euphoria. 2009 was not a bad year for investors in stocks and commodities compared to the year 2008 when we were bombarded with bank failures and the global economy teetering on the brink of collapse. Markets revived partially in 2009. Investors are now confident that markets will come back to a boom in 2010.
Analysts divided on gold Gold has soared to record highs and there is no shortage of those wanting to get exposure to the precious metal, but will it all end in tears for investors? Gold shone brightly in 2009, but analysts are divided on whether 2010 could see some of the gloss fade. Gold closed at a record high of US$1215.30 in local trade on December second, well up from its low of about US$817 per ounce in January.
Gold: the commodity of the year Even though copper and sugar prices have more than doubled this year, 2009's commodity of the year has to be gold. In fact, it's probably the investment of the decade. If you bought gold at the millennium, you would be sitting on gains of about 280pc. An investment in the FTSE 100 over the same period would have lost you more than 20pc of your capital. When dividends and inflation are taken into account you would have barely broken even.
The current bull market in gold is far from over. In fact it is only just beginning While it has come off its highs, gold is still up 30% this year and, many factors still point to a long term bull trend. As we see the end of another year, and even though the price of gold has come off its highs of over $1225, the price gold gained some 30% this year. Now, as the dollar rebounds from it's lows, and as most equity analyst are looking for global equities to continue upwards, there is talk that gold has made it's high. While we are all entitled to our opinions, I believe that these analysts fail to see the bigger picture and that the price of gold has a long way to go before this bull market peaks.
Dip in dollar lifts prices for gold, other metals; Grain prices rise sharply in light trading Gold and other metals inched higher in light trading Monday as the U.S. dollar dipped against other currencies. Energy and agriculture futures also rose as the ICE Futures U.S. dollar index, a widely used measure of the dollar against other currencies, slipped 0.1 per cent. A drop in the dollar makes commodities more attractive to foreign buyers.
Holiday Gold, Oil and Index Trading Another holiday trading extravaganza!!! Last week the market fell into its regular holiday tradition of light volume, as institutions and big traders enjoyed the holidays thus allowing prices to drift higher. We still have one more week of light trading volume before this year and holiday season is officially over.
Gold rises as investors bet on $US drop Gold rose in New York for the third straight session on speculation that the dollar will extend a slump, boosting demand for the metal as an alternative asset. The dollar pared gains of as much as 0.4 per cent against the euro after declining 1.1 per cent in the previous three sessions. Gold has climbed 25 per cent in 2009, heading for the ninth straight annual gain, while the dollar slid 2.9 per cent. "Gold’s moves will all be dollar-based now," said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. "Some pressure has come off the euro, and that’s allowed gold to come back."
Gold recovers some ground as year end approaches and dollar slips In light trading over the holiday period, the gold price has recovered a little, although major markets remain closed. Gold inched higher on Monday,helped by a recovery trend in the euro against the dollar, but trade was light as many investors stayed on the sidelines with U.S. and European markets closed since late last week for Christmas. Spot gold was up 0.8 percent at $1,112.35 an ounce as of 0710 GMT, compared with New York's notional close of $1,103.80 It has risen more than 25 percent so far this year. Spot gold fell to a seven-week low of $1,074.10 an ounce on Tuesday, but has since attracted bargain-hunting.
China Bullish on Silver
Gold: how high will the price go in 2010? Gold rose to a record high in 2009, but can it continue to rise above the $1,200/oz level, or will it fall back? "Notwithstanding the recent correction - and the possibility that gold may yet fall further before bargain hunters and other buyers (including central banks) reappear - the four pillars of gold-price strength remain intact. They are inflation-fueling US monetary and fiscal policies; Central bank reserve diversification with the official sector being a taker rather than a supplier of gold in 2009 and the next few years; expanding retail and institutional investor participation in the United States, China, and around the world; and declining world gold-mine production.
Why Gold Will be the "Greatest Trade Ever" . . . . Don't forget that gold's clocked a positive gain every year since 2001. Yet gold's run is far from over; rather, it's just getting warmed up... My research tells me we're currently in what I've labeled as "Stage Two" of the current bull market in gold. Stage Two begins when gold decouples from the dominant currency (something that's clearly already taking place against the U.S. dollar). The yellow metal then rises against most other currencies, as investment demand kicks in.
If Gold Goes To $5000, John Paulson Could Become The Richest Man In The World If gold ends up rocketing higher as bulls expect, it could turn John Paulson into one of the richest men in the entire world, if not the richest. This is because much of the world's wealthy lost money during the recent crisis and remain long the world economy, in contrast to Mr. Paulson.
Gold undervalued Jeffrey Nichols expects it to go to $1 500 in 2010, $2 000-$3 000 longer term. Gold has enjoyed a long and enviable climb, rising some 380 percent from a cyclical low near $255 an ounce in April 2001 to an all-time high just over $1,225 early this month. Nevertheless, the bull market in gold has a long way to go - both in magnitude and direction. Looking ahead to 2010, don't be surprised to see gold trade at $1,500 or higher sometime during the New Year. And that's not all: I've been telling clients that the yellow metal's price will continue its long-term upswing for at least a few more years, very likely reaching $2,000 an ounce . . . and possibly hitting $3,000 or more before the gold price cycle begins its next long-term cyclical "bear" phase.
Gold, Dollar, Euro: 2010 'Menage a Trois'? Gold hit a 7-week low on Dec. 22 from recent optimistic data of the U.S. economy. For example, U.S. existing housing sales jumped more than expected, and GDP grew at a 2.2% rate in the third quarter, the fastest pace in two years, amid a larger-than-expected downward revision. The upbeat news lifted the dollar and pushed yellow metal prices to below the $1,100 benchmark. Bullion has gained 23% this year on a strong inverse relationship to the Dollar as the longest recession since World War II eroded confidence in the dollar and boosted gold’s status as a safe haven.
Gold Is the Decade's Best . . . . We consider gold a legitimate asset class, and for that reason, we consistently suggest that investors consider a maximum 10 percent allocation to gold-related assets — half in bullion or bullion ETFs and the other half in gold equities — and that they rebalance each year to capture the swings. What the next decade will bring for gold? Who knows. But we do know one thing — those who held gold for the past 10 years will have a happier New Year than those who listened to the perma-skeptics.
Gold rush grips China as people on buying spree As the year nears to a close and 2010 is all set to shine, there is gold glittering in the Chinese landscape. There is a mad gold rush going on across China as people are on the streets, swarming gold jewellery shops to buy coins, bars and ornaments during an year-end shopping spree. China is today the world's largest gold market. China recently overtook India and emerged as the largest gold consumer in the world. The dragon land is the largest global gold producer.
Gold may rise on Asian central bank interest regardless of dollar Strong dollar equals falling gold price, right? Except, perhaps, when Asia's central bankers are involved. Three-quarters of the region's $5 trillion in foreign-exchange holdings are parked in U.S. dollars. A desire to diversify away from the greenback, though, has become evident. The dollar's share in reserve accumulation dropped to less than 30% in the third quarter, Barclays Capital estimates. Admittedly, knowing exactly what is in central bank reserves takes guesswork, but analysts think most diversification in 2009 favored the euro.
Lindsey Williams - Economic Dollar Collapse Amero Gold Silver
The Trade of the NEXT Decade No, dear reader…it’s not that simple. It never is. That’s true of almost everything…. The bond market has begun to sell off. The big question is: what does it mean? Is it A sell-off? Or THE sell-off? We’ve done well with our simple trade for the last ten years. We bought gold. We sold stocks. But what’s ahead? Will that be the best trade for the NEXT 10 years too? Or is it time to sell bonds, rather than stocks? Hmmm….
U.S. Dollar Down Overnight Higher global equity markets are helping to boost demand for higher yielding assets, leading to a rise in U.S. stock index futures. The lack of any significant economic reports is giving traders a free ride to the upside. There is no strong resistance at this time. Treasuries are trading lower once again. Demand for higher yielding assets and a weaker Dollar is helping to pressure March Treasury Bonds and March Treasury Notes. The T-Bonds are trading below a retracement level at 115'08. Regaining this area could trigger a short-covering rally.
Chandler Says Dollar Gains May Be a 'Head Fake' Before Year-End The dollar's most recent gains may be a "head fake" as investors close bets before the end of the year that the greenback will fall, said Marc Chandler, global head of currency strategy at Brown Brothers Harriman & Co. "I'm not sure this is the real thing," New York-based Chandler said in an interview on Bloomberg Radio. "It's sort of like a B movie and with the first large sound it's going to be a head fake."
Forecast 2010 : The center does not hold… but neither does the floor James Howard Kunstler There are always disagreements in a society, differences of opinion, and contested ideas, but I don't remember any period in my own longish life, even the Vietnam uproar, when the collective sense of purpose, intent, and self-confidence was so muddled in this country, so detached from reality. Obviously, in saying this I'm assuming that I have some reliable notion of what's real. I admit the possibility that I'm as mistaken as anyone else. But for the purpose of this exercise I'll ask you to regard me as a reliable narrator. Forecasting is a nasty job, usually thankless, often disappointing - but somebody's got to do it. There are so many variables in motion, and so much of that motion is driven by randomness, and the best one can do in forecasting amounts to offering up some guesses for whatever they are worth.
"Reasonably High Chance" Of Double Dip Coming Next Year Paul Krugman was on ABC's The Week on Sunday declaring a "reasonably high chance" of a double dip coming next year. Actually, he doesn't sound quite as gloomy as you might guess. Yes, he describes the entire recovery so far as being driven by government spending and inventory rebalancing, but the odds of a double dip he does place at lower than 50/50, so that's good. Obviously he wants much more spending.
Paul Krugman Talks More Stimulus
Foreign central bank U.S. debt holdings fell: Fed Foreign central banks' holdings of U.S. Treasuries and agency debt at the Federal Reserve fell in the latest week, data from the U.S. central bank showed on Monday. The combined holdings of Treasuries and agency securities by foreign central banks at the Fed fell $4.97 billion to a total of $2.954 trillion in the week ended December 23. Treasuries held by overseas central banks at the Fed fell $1.412 billion to total $2.185 trillion. Foreign central banks' holdings of securities issued or guaranteed by the two biggest U.S. mortgage financing agencies, Fannie Mae and Freddie Mac, fell by $3.557 billion to $769.433 billion in the latest week.
New Frontier Bank failure highlights weaknesses in inspections and oversight As state auditors combed through the files of the Colorado Division of Banking in 2003, they discovered glaring problems in how it inspects banks. They found the staff of examiners inadequate to glean critical detail from banks' books. They spotted inconsistencies in how they gauged financial weaknesses. And they discovered that inspectors did not follow up on fraud risks they detected at banks. "Colorado's average number of institutions per examiner was higher than all but one other state" in a six-state region, according to the Office of the State Auditor findings. It was the last audit of the Banking Division.
A Record $118 Billion In US Debt To Be Auction Off In Final Week Of The Year It wasn't long ago that the US government had never even sold $100 billion worth of debt in a single week. Now, in the final week of the year (and a shortened, holiday one at that), the Treasury is set to auction off a record-tying $118 billion. WSJ: With foreign buyers holding about half of the Treasury market, their continued appetite for government securities is essential in order to continue funding mounting budget shortfalls in the U.S. at historically low interest rates. The auctions will be the last offerings of Treasury debt for 2009, adding to a record net supply of $1.48 trillion for the year. They start Monday with $44 billion in two-year notes, followed by $42 billon in five-year notes Tuesday and $32 billion in seven-year notes Wednesday, all matching the amounts offered a month earlier.
Treasuries Little Changed on Concern 5-Year Sale Demand to Cool Treasuries were little changed, with two-year yields at the highest level since August, on concern demand at today’s sale of five-year notes will cool after yesterday’s two-year auction was the weakest in four months. The Treasury prepared to offer $42 billion of five-year notes today, following a $44 billion auction of two-year securities yesterday and before a $32 billion sale of seven- year debt tomorrow. Treasuries of all maturities have fallen 3.7 percent this year, according to Bank of America Merrill Lynch indexes. That would be the worst performance since at least 1978, when Merrill began collecting the data.
Eyes wide open and petal to the metal On Christmas Eve, in No Morals, No Hazard, I talked about Eric Sprott’s report "Is it all just a Ponzi scheme?", which suggests that $704 billion in purchases of US Treasuries cannot be accounted for, since they are on file as purchases by what the Federal Reserve Flow of Funds Report labels the "Household Sector", which, it turns out, doesn't exist. It's merely a name under which all unknown purchasers are grouped, while remaining unknown. The purchaser may be the Fed itself, unwilling to admit to more purchases than are already on file. Alternatively, as someone suggested, the Treasuries may never have been issued in the first place, and the entire thing may be an empty charade aimed solely at keeping up the appearance of a functioning US sovereign debt market.
Our 2009 Christopher Columbus Prize Beginning a new tradition, we give an award to the person who has done the dumbest thing in the financial world during the preceding 12 months. We call it the “Christopher Columbus Prize,” named after the mariner who didn’t know where he was going, didn’t know where he was when he got there, and as Churchill pointed out, did it all at government expense. Anyone can make a mistake. But to make a truly colossal blunder you need the support of the taxpayer. That’s why TIME magazine named Ben Bernanke its “Man of the Year.” Yes, you guessed it, he is our man too.
Krugman: 'Reasonably High Chance' the Economy Will Contract Nobel Prize winning economist Paul Krugman said he thinks there’s a “reasonably high chance” the economy will contract in the second half of next year. On the "This Week" Roundtable, Krugman said he agreed with the assessment of fellow Nobel-winning economist Joseph Stiglitz that there is a significant chance the economy will shrink in 2010. “I would go with Joseph Stiglitz,” Krugman added, “I’m really worried about the second half.”
Ponzi Collapses More Than Tripled in 2009 It was a rough year for Ponzi schemes. An Associated Press analysis of all 50 states shows that the recession caused nearly four times as many Ponzi scheme collapses in 2009 as there were in 2008. Tens of thousands of investors watched more than $16.5 billion disappear. That included the life savings of many people. Investors lost more money to such scams in 2008 thanks to the failure of Bernie Madoff's long-running scheme estimated at $21 billion to $50 billion.
Fed exit strategy: Let banks set up CDs Fed proposes letting banks set up equivalent of CDs as tool to drain money from economy The Federal Reserve on Monday proposed allowing banks to set up the equivalent of certificates of deposit at the central bank, a move that would help the Fed mop up money pumped into the economy and prevent inflation from taking off later. Under the proposal, the Fed would offer so-called "term deposits" that would pay interest. Doing so would provide banks with another incentive to park their money at the Fed, rather than having it flow back into the economy.
War on Wall Street as Congress Sees Returning to Glass-Steagall A one-page proposal gaining traction in Congress could turn back the clock on Wall Street 10 years, forcing the breakup of banks, including Citigroup Inc. Lawmakers in both parties, seeking to prevent future financial crises while soothing public anger over bailouts and bonuses, are turning to an approach that's both simple and transformative: re-imposing sections of the 1933 Glass-Steagall Act that separated commercial and investment banking.
Feds probe banker Allen Stanford's ties to Congress The ties between indicted banker Allen Stanford and members of Congress -- including millions in contributions and weekends in five-star Caribbean resorts -- are now the subject of a sweeping federal investigation. Just hours after federal agents charged banker Allen Stanford with fleecing investors of $7 billion, the disgraced financier received a message from one of Congress' most powerful members, Pete Sessions. "I love you and believe in you," said the e-mail sent on Feb. 17. "If you want my ear/voice -- e-mail," it said, signed "Pete." The message from the chair of the National Republican Congressional Committee represents one of the many ties between members of Congress and the indicted banker that have caught the attention of federal agents. The Justice Department is investigating millions of dollars Stanford and his staff contributed to lawmakers over the past decade to determine if the banker received special favors from politicians while building his spectacular offshore bank in Antigua, The Miami Herald has learned.
Nathaniel Rothschild Said to Be Rusal IPO Investor Nathaniel Rothschild's private investment company may buy shares in United Co. Rusal's $2 billion Hong Kong initial public offering, said three people familiar with the plan. Paulson & Co., the New York hedge fund run by billionaire John Paulson, and the Russian state-owned development bank Vnesheconombank also may be among so-called "cornerstone" investors guaranteed shares in the IPO in exchange for a pledge not to sell them for a number of months, the people said. They declined to be identified because the information is private.
The Recession Begins Flooding Into the Courts New York State’s courts are closing the year with 4.7 million cases — the highest tally ever — and new statistics suggest that courtrooms are now seeing the delayed result of the country’s economic collapse. The Great Recession may be showing signs of easing, but the legal fallout from the financial troubles, the numbers suggest, may have only just begun. And the increase in New York offers a preview of the recession-related cases showing up in courts across the nation.
Assisted Living: Back to the Future It's right in my neighborhood, so I've probably driven past that gracious Victorian house, painted a dusty rose, a zillion times. But because it looks like many other houses in Montclair, N.J. - big old trees, nice landscaping, wraparound deck - I never realized that it was an assisted living facility. Ever since a 1990's building boom, the term "assisted living" has conjured up mental images of a three-story stucco building on a highway, with a brass chandelier in the lobby and a "concierge" desk. But long before those places began popping up, many owned by regional and national chains, lots of smaller, homier residences for seniors were tucked into ordinary neighborhoods.
Seniors Worry About Medicare Advantage Cuts Insurers constantly caution seniors that their Medicare Advantage perks such as hearing aids, dental payments and even gym memberships will fizzle if Democrats get their way and cut government subsidies for them. But tens of billions of Medicare dollars funneled through insurers also pay for extras that never reach beneficiaries: multimillion-dollar salaries, executive retreats in Hawaii, Scotland and Cancun, and massive expenditures on marketing to lure more customers to the privately administered Advantage plans that serve as an alternative to government-provided Medicare.
Democrats Say Final Health-Care Bill Will Look Like Senate's Any health-care legislation that reaches President Barack Obama's desk will be close to the version the Senate passed last week, top Democrats said yesterday. The Senate garnered the minimum 60 votes needed to overcome Republican objections and pass its measure overhauling health care, and any major changes would jeopardize final approval, said Senator Bob Menendez of New Jersey, chairman of the Democratic Senate Campaign Committee.
Healthcare Reform is a Lump of Coal Ron Paul Last week on Christmas Eve, after many backroom deals were made, the Senate passed the healthcare reform bill with a strictly partisan vote. I was pleased that my colleagues in the GOP are on the right side of this bill. Although this vote was a major step in healthcare reform becoming reality, they still have to reconcile the Senate bill with the House-passed version in conference committee. This could prove even more difficult and costly than the Senate vote. There was a little bit of controversy surrounding one particular Senator who was initially against the bill, but then, coincidentally, a large amount of Medicare funding specifically for his state was tucked inside and he ended up voting for it. One wonders how much more of that will have to go on to achieve final passage.
Health Care, The "Patriot" Act & the U.S. Constitution
D.C. housing market's collapse lessens developers' swagger In the go-go years of the housing boom, in one of Washington's hippest neighborhoods, Scott Pannick built more than 300 loft-style condos, many of them attracting fevered bids even before their gourmet kitchens were installed. "Sold just like that," Pannick recalled, snapping his fingers. That was before the housing market collapsed, before Pannick's lender seized his last modern design -- the glass, steel and brick Metropole on 15th Street NW. In September 2008, days after the fall of Lehman Brothers, Pannick trumpeted the opening of the Metropole by throwing a Hollywood-style theme party, with cigarette girls, spotlights and pink champagne.
Higher-End Homes Face Price Pressure Though the cheapest houses on the market may not get much cheaper, more-expensive homes still have further to fall, which will likely slow the broader housing recovery. The Standard & Poor's/Case-Shiller home-price indexes for October are due on Tuesday morning. Economists estimate the index tracking prices in 20 major cities was down 7.7% from a year ago. That would mark the smallest year-over-year decline since November 2007, but would also leave prices slightly lower than in September, ending a four-month string of month-to-month improvements. That might cause some anxiety about the housing recovery. Despite recent signs of a bottom, many observers expect home prices to fall an additional 10% before the bust ends.
Global Agenda: How's your house It's worth keeping an eye on the American housing market - after all, that's where the bubble developed and burst, and that's where the big trouble began, eventually encompassing the entire economy and then the whole world. The problem is that, at any rate at first blush, it's difficult to make sense of what is happening. There's no need to look further than the most recent data, published this week, to become thoroughly confused. What is one to make of the fact that sales of existing homes are rising sharply and seem to be recovering well from the slump, while sales of new homes fell sharply and have barely risen from the lowest levels they plumbed earlier this year?
Stranded by Arrow Trucking, employees strike back with lawsuit The class-action lawsuit claims that Arrow Trucking violated federal laws by not giving employees 60 days' notice of the shutdown. A class-action lawsuit against Arrow Trucking was expected to be filed in federal court Monday. A principal charge: The Tulsa, Okla., flatbed carrier broke federal law by not giving its employees 60 days' notice about its precarious financial state. Instead, Arrow last week stranded hundreds of its drivers around the country. Many of them found out their employer was shutting down when their company-issued fuel cards wouldn't work. On Tuesday, the company abruptly told its headquarters staff to pack up and go home. "It was just outrageous conduct, I think, to do it on the eve of Christmas," said Chuck Ercole, an attorney with Klehr Harrison Harvey Branzburg LLP in Philadelphia. "People's paychecks on the 15th bounced."
Information on Arrow Trucking shutdown:
TheBobChapmanChannel --Dec 24 2009 part 1
TheBobChapmanChannel --Dec 24 2009 part 2
Rolling in Dough, Still Kicking Out Families Goldman Sachs Subsidiary Among 'Loan Servicers' Collecting Criticism There's no place like home for the holidays. But this year, Phil and Barb Kubes and their three children will have to settle for memories of Christmas past. Last month, the Omaha, Neb., family was forced out of their home of 12 years after falling drastically behind on mortgage payments. Having failed to reach a workable solution with Litton Loan Servicing, the Houston-based company that collects their mortgage debt, the Kubes were foreclosed upon and told to vacate. They ended up renting a house across town.
Tribes buy back America - acres at a time Purchases to help protect culture, way of life by preserving sacred areas OMAHA, Nebraska - Native American tribes tired of waiting for the U.S. government to honor centuries-old treaties are buying back land where their ancestors lived and putting it in federal trust. Native Americans say the purchases will help protect their culture and way of life by preserving burial grounds and areas where sacred rituals are held. They also provide land for farming, timber and other efforts to make the tribes self-sustaining.
Weak economy motivates Americans to save more As crazy as it sounds, losing a $70,000-a-year job has been good for Marty Morua's finances. The former Wall Street stockbroker says the setback forced him to scrutinize his family budget and snip away at expenses. And soon, even with less income, their savings grew. First, he and his wife decided to live on her salary so he could be home with their 5-year-old daughter after school. Without a nanny, they saved $12,000 a year. He dropped services he didn't use on his cellphone -- texting and video games -- to pocket $250 a year. He took a defensive-driving course for a 10 percent discount on his auto insurance and dropped car-rental and roadside-assistance coverage, for an extra $150 a year.
Most important civil right of all Well, to paraphrase a famous president of a slightly earlier time, "you're doing a heckuva job, Janet." That goes for everybody at the White House. If Barack Obama wants to reassure a nervous public that bureaucratic incompetence won't be tolerated, he might look to the example of what happened to the director of FEMA in the wake of Hurricane Katrina. But no one expects the president to sack Janet Napolitano, the secretary of something the government insists on calling Homeland Security. That's not how an administration that regards words and deeds as equals actually works. The lessons in the latest Islamist attempt to bring down a Western airliner could be useful, but such lessons are too painful for the guvvies to think about.
Wither Sovereignty Executive Order Amended to Immunize INTERPOL In America - Is The ICC Next? Last Thursday, December 17, 2009, The White House released an Executive Order "Amending Executive Order 12425." It grants INTERPOL (International Criminal Police Organization) a new level of full diplomatic immunity afforded to foreign embassies and select other "International Organizations" as set forth in the United States International Organizations Immunities Act of 1945. By removing language from President Reagan's 1983 Executive Order 12425, this international law enforcement body now operates - now operates - on American soil beyond the reach of our own top law enforcement arm, the FBI, and is immune from Freedom Of Information Act (FOIA) requests.
pt 1/4 Destruction of Freedom, Police State | MEP Nigel Farage on KWN Many US Citizens that follow European Politics are deeply concerned the the United States is following Europe into a post democratic age. Nigel Farage is currently a Member of European Parliament/MEP and a founding member of the United Kingdom Independence Party/UKIP. Nigel has become legendary in all EU countries as a voice of the people is Europe. The EU is now appointing people without going through the election process and many feel that even when they do have an election it consists of several politicians from different parties but the same agenda. Nigel has taken on the establishment and with his tremendous leadership he has given others the courage to stand up against an onslaught of injustices against the people. This interview is a glimpse into what Americas future may soon look like if our government continues to follow the EU mold. In this interview the unbelievable clips from his exchange in the EU are heard and snapshots above are taken from the video of this incredible exchange. Nigel also discusses the losses of freedoms in Europe, the police state which is enveloping the people of the European Union, the hijacking of democracy which has taken place in Europe, the injustice of the appointing of European leaders rather than by traditional democratic election, why he has decided to fight for the people, the Lisbon Treaty, cap & trade and much more.
pt 2/4 Destruction of Freedom, Police State | MEP Nigel Farage on KWN
pt 3/4 Destruction of Freedom, Police State | MEP Nigel Farage on KWN
pt 4/4 Destruction of Freedom, Police State | MEP Nigel Farage on KWN
Have Americans Traded Freedom for Security? Obama’s dwindling band of true believers has taken heart that their man has finally delivered on one of his many promises – the closing of the Guantánamo prison. But the prison is not being closed. It is being moved to Illinois, if the Republicans permit. In truth, Obama has handed his supporters another defeat. Closing Guantánamo meant ceasing to hold people in violation of our legal principles of habeas corpus and due process and ceasing to torture them in violation of U.S. and international laws. All Obama would be doing would be moving 100 people, against whom the U.S. government is unable to bring a case, from the prison in Guantánamo to a prison in Thomson, Illinois.
Al Qaeda takes credit for plot to down plane Al Qaeda in the Arabian Peninsula claimed responsibility on Monday for the unsuccessful Christmas Day effort to bring down a jet over Detroit, while the Obama administration rushed to deal with the political fallout from the attack. President Obama issued his first statement on the attack, telling Americans that his government was doing everything in its power to keep them safe. Hours earlier, the homeland security secretary backed away from her Sunday comments that "the system worked."
Napolitano Now Says Airline Security System Failed Homeland Security Secretary Janet Napolitano conceded Monday that the aviation security system failed when a young man on a watchlist with a U.S. visa in his pocket and a powerful explosive hidden on his body was allowed to board a fight from Amsterdam to Detroit. The Obama administration has ordered investigations into the two areas of aviation security -- how travelers are placed on watch lists and how passengers are screened -- as critics questioned how the 23-year-old Nigerian man charged in the airliner attack was allowed to board the Dec. 25 flight.
More Pilot Discretion on Security Measures The heightened security measures faced by air travelers in the United States and worldwide during the weekend were eased somewhat on Monday, the first business day after Friday’s terrorism incident on a jet bound to Detroit from Amsterdam, federal officials said. But airlines still delayed and canceled flights in response to the measures, and blamed the disruptions on the security moves. And Canadian officials, seeking to reduce the backlog at the security checkpoints, have effectively banned carry-on luggage for passengers heading to the United States.
Smart-grid efforts will receive $200B, report says Governments and utilities are expected to spend a cumulative $200 billion on smart-grid technologies from 2008 through 2015, according to a report released Monday by Pike Research. The research firm, based in Boulder, Colo., found that utilities will find the best return on their investment, and predicted they'll invest most of their capital budgets in smart-grid infrastructure projects. "Smart grid" is a term used to describe technological innovations to help conserve energy, such as "smart meters," which allow homeowners to cut down on electricity usage.
Yen to Fall Versus Dollar in '10 as Rates Diverge The yen may weaken to 95 to the dollar by the end of next year as deflation keeps the Bank of Japan from following interest-rate increases by the Federal Reserve, based on the median estimate of 12 Tokyo-based analysts. Eleven of those surveyed by Bloomberg News expect the yen to decline versus the dollar from the end of March to Dec. 31. Futures prices show the U.S. central bank may start raising rates as soon as June, whereas Bank of Japan Governor Masaaki Shirakawa has pledged to keep rates "persistently" near zero to fight deflation.
Brazilian Real Advances on Strength of Several Transactions Brazil's real rose the most among major currencies after a few "large" dollar sales by investors, said Luiz Roberto Monteiro, currency manager of Corretora Souza Barros in Sao Paulo. "We detected a $200 million transaction by a state-owned company and there are more operations like that today," Monteiro said in a telephone interview. He declined to identify the company. Low liquidity due to the Christmas and New Year's holidays is also contributing to the large move in the real, Monteiro said.
Colombia Growth in 2010 May Be Cut by Venezuela Colombian Finance Minister Oscar Ivan Zuluaga said Venezuela's move to freeze trade between the countries will reduce economic growth next year. Exports to Venezuela may fall by about half to $2 billion next year, Zuluaga said today in an interview in Bogota. Exporters are diversifying by sending more goods to Mexico, Peru, Central America and the Caribbean, Zuluaga said. "The government's basic premise is that Venezuela's economic problems will continue and the exports will remain below what they reached in recent years," Zuluaga said. "This is the most realistic outlook."
Venezuelan President Threatens To Nationalize Toyota CARACAS, Venezuela — Venezuelan president Hugo Chávez has threatened to nationalize Toyota Motor's assembly plant and turn it over to a Chinese company. The incendiary statement came as Chávez accused Toyota of failing to produce enough vehicles appropriate for rural areas of the South American country. He made the same threat to Fiat and General Motors, which also operate plants in the country and also said the international automakers are not transferring enough of their corporate new technology to local plants.
China to Cool Property Prices, Resist Yuan Pressure Chinese Premier Wen Jiabao said the government will cool property prices, resist pressure for the yuan to appreciate and keep inflation at "reasonable" levels. "Property prices have risen too quickly in some areas and we should use taxes and loan interest rates to stabilize" them, Wen said yesterday in an online interview with the official Xinhua News Agency. China will "absolutely not yield" to calls for currency gains, he said.
Who Will Blink First? Iran has responded to America's end-of-the-year, engagement-or-else deadline by, among other things, test firing upgraded long-range missiles and temporarily seizing control of an Iraqi oil field. The latter incident, it has been widely reported, is not unusual. Since the Iran-Iraq War ended in 1988, there have been frequent territorial disputes along the border that separates the two nations. But as George Friedman noted at Stratfor on Monday, given the broader context of the current high-stakes showdown between the United States and Iran, the cross-border raid cannot be dismissed as insignificant.
Iran Sanctions are Precursor to War Ron Paul Last week the House overwhelmingly approved a measure to put a new round of sanctions on Iran. If this measure passes the Senate, the United States could no longer do business with anyone who sold refined petroleum products to Iran or helped them develop their ability to refine their own petroleum. The sad thing is that many of my colleagues voted for this measure because they felt it would deflect a military engagement with Iran. I would put the question to them, how would Congress react if another government threatened our critical trading partners in this way? Would we not view it as asking for war?
Iran divide deepens after arrests Iranian authorities on Monday arrested about a dozen reformists, including senior aides to opposition leaders, in a fresh crackdown following mass protests in Tehran and elsewhere at the weekend. At least three allies of Mir-Hossein Moussavi, the opposition leader, who claimed victory in Iran’s disputed presidential election in June, and two aides to Mohammad Khatami, the former president, have been detained. Ibrahim Yazdi, the head of the Freedom Movement of Iran, a religious nationalist party, and several reform-minded clerics in the holy city of Qom, were also held. No official reason was given for the arrests, which seem certain to deepen the antagonism between the government and the reform movement.
Maverick Iraqi politician claims Iran could go nuclear within weeks Iraqi parliamentarian Mithal al-Alusi is warning that Iran is much closer to attaining nuclear capability than most sources, including the International Atomic Energy Agency and the US State Department, believe. In fact, he predicts the Iranians could have a nuclear capability - and may announce that they have it - as soon as next month. "We are receiving information which says Iran is so close to producing an atom bomb," Alusi said in an interview earlier this month, the latest in a series of interviews conducted since September. "All the international community, they don't realize how close [the Iranians] are to the goal... The Iranians will surprise us one day [soon] and say, 'We have it.'"
UAE Splits the Atom Club It is hard to imagine a more politically sensitive new energy project than the Arab world's first nuclear power plants. But by awarding the $20.4 billion contract to a group of South Korean companies, the United Arab Emirates has shrugged off lobbying from Washington and Paris and gone for the cheapest and simplest industrial option. The U.A.E. has sent a message it is open to foreign investors without close political, military or oil-industry ties. And South Korea's victory suggests the nuclear industry is less of an oligopoly than commonly perceived. The consortium led by Korea Electric Power defeated bids led by America's General Electric and by France's Electricité de France and Areva.
Peres hosts Christian leaders, stresses commitment to freedom of religion President Shimon Peres hosted a traditional ceremony at his official Jerusalem residence on Monday to welcome the Christian leadership in Israel. Peres offered his blessings to hundreds of Christian leaders, wishing them a "Happy New Year and a Merry Christmas." The president also stressed Israel's fundamental commitment to freedom of religion, in Jerusalem and the holy sites. "It is Israel's responsibility to make sure every believer can pray to his or her Lord without interruption," he said. "Israel is deeply committed to protecting the holy sites for every religion. We will not tolerate any offense toward any church, mosque or synagogue."
Critical Currents: The European connection The status of Israeli-Palestinian relations depends more on the fate of health reform in the United States than on any other factor - or so conventional wisdom here has it. This approach suits the present Netanyahu government's strategy well: It allows for ongoing diversions in the hope of delaying - and perhaps ultimately obviating - any serious movement on a viable political settlement. But it completely disregards the changing international climate in general and the new currents emanating from Europe in particular. The US without a doubt has played in the past and continues to play a lead role in determining the terms and the pace of progress toward resolution of the conflict. It is not, however, the only player. Increasingly Europe, for many years content to take a back seat to Washington, is becoming a more vocal political (as well as economic and security) actor. This is being done with American foreknowledge, if not actual encouragement.
Israel Concerned About Strengthening Egypt-Iran Axis Iran and Egypt have taken strides to bolster ties in their first round of high-level talks since 1979. On December 20, Egypt's ailing and aged president, Hosni Mubarak, received a rare two-hour, face-to-face visit from Iranian Parliament Speaker Ali Larijani. Larijani had flown to Cairo to represent Tehran at a committee meeting for member states of the Parliamentary Union of the Organization of the Islamic Conference. In addition to the meeting with Mubarak, Larijani also held talks with his counterpart Ahmed Fathi Surur and Egyptian Foreign Minister Ahmed Aboul Gheit. According to the Los Angeles Times, Egyptian sources said that Iranian President Mahmoud Ahmadinejad is trying to bring an end to tensions between his country and Egypt.
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