Weekday NEWS to Comfort the Disturbed and Disturb the Comfortable.
Mon 01.25.2010
# 5 - Premier American Bank, Miami, Florida The fifth bank failure of the new year is Premier American Bank, Miami, Florida. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $85 million.
#6 - Bank of Leeton, Leeton, Missouri Bank of Leeton, Leeton, Missouri is the sixth FDIC-insured institution to fail in the nation this year, and the first in Missouri.
#7 - Charter Bank, Santa Fe, New Mexico Charter Bank, Santa Fe, New Mexico, becomes he seventh FDIC-insured institution to fail in the nation this year, at an estimated cost to the Deposit Insurance Fund (DIF) will be $201.9 million.
#8 - Evergreen Bank, Seattle, Washington Evergreen Bank, Seattle, Washington, becomes the eighth FDIC-insured institution to fail in the nation this year, and the agency estimates that the cost to the Deposit Insurance Fund (DIF) will be $64.2 million.
#9 - Columbia River Bank, The Dalles, Oregon Columbia River Bank, The Dalles, Oregon, is the ninth FDIC-insured institution to fail in the nation this year. The agency estimates that the cost to the Deposit Insurance Fund (DIF) will be $172.5 million.
Volcker Rule is necessary to prevent bank failures turning into a crisis Obama's bold action should lead to a new Glass-Steagall Act, writes Terry Smith You heard it here first. On September 20 2008 The Daily Telegraph ran an article entitled "Strong medicine needed to cure ills of cheap money" in which I wrote: "I think US regulators should re-impose the Glass-Steagall Act." Last week President Obama announced the Volcker Rule, named after Paul Volcker - a central banker of undoubted integrity and ability. This almost certainly means that in substance we are going to get a new Glass-Steagall Act.
Seven things about the economy that everyone should be more worried about than they are As a coda to Hanrahan’s series, here is a list of seven things all of us should be more alarmed by than we currently are, going forward. A common theme underlying them all is that while our leaders -- and the voices of conventional wisdom -- treat our current recession as cyclical in nature, and are essentially mostly just waiting around for growth to pick up again, there is plenty of reason to believe that this crisis was instead an expression of structural problems. And if that is so, and we don’t take the proper action, then the wait could be a long one.
The middle class may never be the same again
The recovery could take a really long time
The recovery could only be temporary
Then what? This time, we don’t have the tools to get out of a recession
The ‘very serious’ people in Washington are still obsessed about the deficit
Whatever is making the stock market go up could go away
The hugely irresponsible financial sector remains unchastened
State of the Republic Address Part 1 of 3
Is America a failed state? Barack Obama won the Democratic nomination and then the presidency by offering the same program that Peter Pan gave the Darling children: Close your eyes, think happy thoughts, and you will be able to fly. "Yes we can" in the meantime has changed to "No he can't," as America lost five million jobs in 2009 and its effective unemployment rate, including so-called long-term discouraged workers, rose to 22%, a level unseen since the Great Depression.
Scandal: Albert Edwards Alleges Central Banks Were Complicit In Robbing The Middle Classes We apologize in advance for the NY Magazine-style headline, but this is a report that has to be read by all Senators who are preparing to reconfirm Bernanke for a second term. When voting for the Chairman, be aware that all of America will now look at you as the perpetrators who are encouraging the greatest inter and intra-generational theft to continue, and as prescribed by Newton 3rd law, sooner or later, an appropriate reaction will come from the very same middle class that you are seeking to doom into a state of perpetual penury and a declining standard of living. America spoke in Massachusetts, and will speak again very soon if you do not send the appropriate signal that you have heard its anger - Do Not Reconfirm Bernanke. You have been warned.
Obama's Bank Bashing May Ignite M&A While bull markets and easy financing are critical for strong M&A, another important factor is government action. For example, the Telecommunications Reform Act of 1996 led to a surge in M&A activity, as the government allowed competition in local and long-distance communications. This is why President Obama's recent statement on finance reform is so important, especially to the private equity and hedge fund sectors. He declared: "No bank or financial institution that contains a bank will own, invest in or sponsor a hedge fund or a private equity fund."
Populist backlash puts Federal Reserve Chairman Ben Bernanke under siege The populist brushfire that has burned through Democratic fortunes this week threatened Friday to claim Federal Reserve Chairman Ben S. Bernanke, imperiling his nomination for a second term and sending an unsettled stock market tumbling for the third straight day. Once viewed as the rock at the center of the government's response to the financial crisis, Bernanke has become a target for mounting anti-Wall Street fervor with two Democratic senators registering their opposition Friday and other support softening
Obama Sharpens His Populist Tone ELYRIA, Ohio—President Barack Obama tried to relaunch his political agenda Friday with a populist attack on banks and insurance companies that signaled he would fight for his priorities going into the fall elections rather than give ground to Republicans on key issues. Mr. Obama's campaign-style speech here capped one of the most bruising weeks of his year in office. The president traveled to this swing-state manufacturing town ostensibly to deliver a speech about jobs and the economy, but instead he repeatedly veered off-script to interject pledges to battle his political foes over health care and other issues "so long as I have breath in me."
WSJ's Personal Columnist Jason Zweig discusses President Obama's plan to curb excessive risk taking at big banks. He also tells Kelsey Hubbard his proposals for better financial regulation.
Fannie Mae, Freddie Mac Should Be Eliminated, Frank Says A top House Democrat on Friday said his committee was preparing to recommend "abolishing" mortgage-finance giants Fannie Mae and Freddie Mac and rebuilding the U.S. housing-finance system from scratch. "The remedy here is...as I believe this committee will be recommending, abolishing Fannie Mae and Freddie Mac in their current form and coming up with a whole new system of housing finance," said Rep. Barney Frank (D., Mass.), the chairman of the House Financial Services Committee.
The Secret Bank Bailout There's one method that the Federal Reserve has been employing to shovel money to the bank elite that is rarely mentioned, though I hear the sums that have been shoveled are in the billions and they are showing up on the books of firms like Goldman Sachs as pure profit. It's really pure scam. Here's what went on for months, according to traders familiar with the situation. When the Federal Reserve buys and sells Treasury securities it does so through primary dealers. Goldman Sachs and JPMorgan are among the select elite firms that, naturally, got into this club.
Geithner's phone logs count down AIG bailout The Treasury secretary, then head of the New York Federal Reserve, had conversations with more than 30 business and political leaders on the day the insurance giant secured its federal lifeline. Treasury Secretary Timothy F. Geithner spoke with more than 30 business and political leaders on the day American International Group Inc. was bailed out by the U.S. government, his phone logs show. At the time, Geithner ran the Federal Reserve Bank of New York, which helped organize AIG's rescue, on Sept. 16, 2008, when the calls took place. The logs were submitted by the New York Fed in response to a subpoena last week from the House Oversight and Government Reform Committee.
BAIR MUST RESIGN: Conflict Of Interest What the hell is THIS? Sheila Bair, one of the chief regulators overseeing Bank of America’s federal rescue, took out two mortgages worth more than $1 million from the banking giant last summer during ongoing negotiations about the bank’s bailout and its repayment. It gets better... Mortgage documents for that 14-room home include a provision, known as a second-home rider, stating that Bair and her husband must keep the house for their “exclusive use and enjoyment” and may not use it as a rental or timeshare.
Liz Warren and Paul Volcker: “Break Up TBTF Banks,” but Geithner Says “No” When President Obama announced additional measures to deal with too-big-to-fail (TBTF) banks, yesterday, it was Paul Volcker standing behind him, not the usual economic team of Tim Geithner and Larry Summers. Volcker has been a strong champion of breaking up the TBTF banks and sharply curtailing the casino activities of traditional depository banks. So does Obama mean it?
MSNBC's Rachel Maddow - TARP oversight Chair Liz Warren on Obama's tough stand
Uncertainty on Bernanke Vote Raises Economic Fears A Bernanke defeat could raise risk of 'double dip' recession, but approval seems more likely A defeat of Federal Reserve Chairman Ben Bernanke's quest for another four-year term could raise the risk of a "double dip" recession if political jousting over a successor were to drag on for months, economists warn. But Bernanke's prospects appeared to brighten Sunday, with three more senators, including Republican leader Mitch McConnell of Kentucky, predicting he'll be confirmed. A vote is expected later this week.
Opposition To Bernanke Growing In Wake Of Mass. Vote One day after indicating that he had not decided on whether to support Ben Bernanke's renomination, Senate Majority Leader Harry Reid (D-Nev.) announced late Friday afternoon that he will support giving the Federal Reserve chairman another term. His full statement: Every decision I make about our economy is governed by the goal of putting Nevadans and Americans back to work, helping them keep their homes, and strengthening the middle class. My vote to confirm Ben Bernanke for a second term as Chairman of the Federal Reserve is no different.
Bernanke Vote: 'Unthinkable Has Become a Possibility' Ben Bernanke's nomination for a second term as U.S. Federal Reserve chairman, once seen as a sure thing, appeared in jeopardy on Friday after two more Senate Democrats said they would vote against it. "I believe there will be the votes to confirm him. But it's going to be very close," a senior Democratic leadership aide said. See the latest tally of announced voting decisions in the chart on page 2 of this story. With the U.S. job market in disarray and voters angry at Wall Street, members of Congress facing mid-term elections in November have come down hard on the central bank and its leadership.
Dodd, Gregg Predict Bernanke Will Win Confirmation Vote Sen. Christopher Dodd (D., Conn.), chairman of the Senate Banking Committee, and Sen. Judd Gregg (R., N.H.), a member of the committee, said they expect Ben Bernanke to win Senate backing for a second term as chairman of the Federal Reserve despite substantial opposition in the Senate. "In the last few days there have been a flurry of media reports on Chairman Bernanke's confirmation prospects, highlighting a very vocal opposition," the two senators said in a statement Saturday. "Chairman Bernanke has done an excellent job responding to one of the most significant financial crises our country has ever encountered. We support his nomination because he is the right leader to guide the Federal Reserve in this recovering economy. Based on our discussions with our colleagues, we are very confident that Chairman Bernanke will win confirmation by the Senate for a second term."
Support for Bernanke confirmation The White House says it is confident of Ben Bernanke's confirmation as Federal Reserve chairman for a second term. The top Republican in the US Senate, Mitch McConnell, also said that he believed Mr Bernanke would be confirmed with bi-partisan support. However Mr McConnell did not say if he would be voting for Mr Bernanke. There has been opposition from senators in both parties to Mr Bernanke's second term. Critics say he did not do enough to prevent the economic crisis.
Bernanke's Doom Loop Two Bank of England economists have written one of the most perceptive and forthright papers in the history of central banking: "Banking on the State." Compared with any of the dozens of deadly dull, equation-filled, narrowly focused, recommendation-avoiding, career-enhancing, résumé-padding, utterly useless academic exercises published in the dozen regional Federal Reserve bank journals every month, this paper stands out like a diamond in an immense dung hill.
State of the Republic Address Part 2 of 3
After the Welfare State, what? Hugo Salinas Price Raising the price of gold to $20,000 dollars an ounce would imply a corresponding devaluation in the value of all paper money. In the 40's and 50's of the last century, about 70% of reserves of central banks were in the form of gold at $35 US dollars an ounce. At the present time, reserves of central banks, excluding gold, are about $8 Trillion dollars (not all of which, however, are dollars). If these imaginary digital reserves (for such they are) were to once again amount to not more than 30% of total central bank reserves, the price of gold would have to increase substantially. We can calculate the approximate price of gold that would be necessary in order to have the gold component of reserves resume the proportion it at one time took up of total central bank reserves, 70%.
Volatility: Fasten your seat belt in gold When in the history of the United States has there been a credible movement to remove both the Chairman of the Federal Reserve and the Secretary of the US Treasury? The answer is never since the invention of the private bank, the US Federal Reserve. I have been telling you for months that there is a war going on between the Banksters and Daddy Warbucks. This is best understood as the desire to bring the power of the Federal Reserve into the Oval office, not by trusting an appointee but by absolute control over the appointee. Failing that the plan is to emasculate the Fed.
Gold prices to behave like a roller-coaster ride Gold prices will continue to witness an uptrend in 2010 but investors should expect continued high volatility-resembling an amusement park roller coaster ride, according to Jeffrey Nichols, Senior Economic Advisor to Rosland Capital. In his latest commentary on market trends, Jeffrey Nichols said that gold prices won't move up higher without interruption.The two main sources of gold price volatility will continue to be the investment demand for the yellow metal and volatility in dollar's exchange rate.
The mad, mad world of gold! Investors are now acting very cautiously as far as gold is concerned. They are not certain where is the metal headed for. So, they read almost all literature published in business magazines, newspapers and internet. But, it seems, even God can’t predict the future of gold. Because, every market analyst has a different opinion as far as gold is concerned. Some of them say the price of gold has risen more than four-fold since 2001 and was up another 24 per cent in 2009, hitting an all-time high of $1,228 last December. But it has dropped $100 recently, in tandem with a rally in the US dollar. Gold bugs argue that a growing risk of inflation and questions about how the US will pay off its massive debt means gold could be headed to $5,000 or higher, while sceptics see a golden bubble waiting to burst. Is the great gold rush of the past decade about to end?
Gold remains volatile on Obama plans Gold prices remained highly volatile in Asian trade Friday mainly on US president Obama’s plans to restrict risk taking by banks. US gold futures for February delivery was seen trading at $1094.80 per ounce at 11.30 a.m Singapore time while spot gold was at $1094.80 an ounce at the same time. On Thursday, March delivery settled at $1103.20 on the COMEX division of the New York Mercantile Exchange while Spot gold closed at $1094.20 an ounce.
January 20, 2010 Competing Currencies
Gold Price: Don't create false bubbles Yes, yes, David, the elites want to pry gold from the naive, so they stage a bear market. And yes, gold price is dominated by speculative buyers. But none of the three reasons you suggest for a bear gold market are more than transient. Where the value of an ounce of gold is in question is the surprising lack of overwhelming public demand in the face of many buy recommendations and the rationale that if paper money fails, there will be a gold rush that will be too late -- by then gold supply would evaporate.
Central Banks bet on gold reserve In 2009, almost all central banks showed an increased love for gold. In the recent past, Russia’s central bank added 800,000 ounces of gold to its reserves last month, increasing its holdings of the metal to $22.4 billion. The bank’s gold reserves climbed to 20.5 million ounces from 19.7 million the previous month. And, India’s central bank also purchased gold in 2009 to increase its foreign reserves.
Dude, Is That Gold Bar for Real? As the 10-year gold bull continues its stunning run, rumors of fakery seem to be cropping up as fast as new Eagles can be minted. Should you be worried? Do you need to run to the coin shop for a home test kit? Well, the counterfeiters are out there, and have been for millennia, but how to counter them? You probably remember movies about the Old West, wherein a shady-looking character would offer to exchange a gold coin for a horse, and the nag's owner would bite down on the coin. That was about all you could do, if you lacked proper assaying equipment and had to make a snap judgment on the fly: depend on your teeth to tell you whether the metal in your hand was sufficiently soft to be genuine gold.
Silver: The Race Is On Ed Zimmer What do the following items tell you? Price of silver falls by nearly 5% in one day. In less than 11 days the available stock of silver to cover paper shorts falls by nearly 15%. In the first few minutes of oveseas trade, silver begins to recover it's losses. The answer is that the race to own silver is on. From the US Government saying that it can't get enough blanks to make the silver eagle to the fact that silver stocks are continuing to decline rapidly since the first of the year, the signs are all pointing to an increase in the future. Allow me to point out what I am seeing and you can make up your own mind.
Dollar gains as uncertainty swirls The dollar extended its recent gains Friday against the euro and the pound as possible changes in U.S. financial regulations, tightening of monetary policy in China and credit turmoil in Greece drove investors to the perceived safety of the U.S. currency. The 16-nation euro tilted higher in overnight trading, moving up from the 6-month low of $1.4028 reached in Thursday's trading. But in morning trading in New York, the euro dropped to $1.4092 compared to $1.4103 late Thursday. The British pound tumbled to $1.6084 from $1.6209 late Thursday. But the dollar slipped to 90.14 Japanese yen from 90.38 yen.
Euro is an orphan against US Dollar In the last two weeks of December we made the following comments In the short to intermediate time frames, we would like to point to several new factors, which suggest that Gold could potentially pull back more, the dollar could mount a stronger than expected rally which should lead to a rather strong pull back in the Euro and other competing currencies. Certainly, the dollars rapid move from 74.57 to a high of 78.50 has caught a lot of traders with their trousers down.
Cramer: Could Obama Cause 1,000-Point Correction? Cramer’s Game Plans most often use earnings, analyst meetings and industry conferences as key catalyst, but President Obama’s crackdown on the banks has changed all that. Now investors have to take into account a new factor – politics – when deciding whether to buy or sell a stock. Case in point: Friday’s 217-point loss in the Dow and the S&P 500’s 2% decline following the president’s continued talk of increased regulation. And it’s more than just Obama. There’s speculation that Treasury Secretary Timothy Geithner could be replaced, and Federal Reserve Chairman Ben Bernanke’s reconfirmation is by no means a sure thing. The loss of either man could cause the first serious correction since the bottom in March, Cramer said – “a thousand points, minimum.”
Anger Over Bankers' Pay Obscures More Critical Issues When the talk turns to changing banking regulation, the American public appears to be fixated on executive pay. Following the British decision to tax bonuses in excess of £25,000, or about $40,000, bankers in the United States are wondering what action Congress may take if payouts this year stoke a burst of public fury. After all, the House of Representatives passed a bill in March that would have taxed employees of American International Group at 90 percent on any amount they earned exceeding $250,000. That died when the Senate did not take it up, but it illustrated the depth of anger against high bonuses at companies that took government bailouts.
State of the Republic Address Part 3 of 3
The Take: A sea change in Obama's demeanor The populist drumbeat emanating from the White House is a predictable reaction to the shellacking Democrats took in Massachusetts last week and the drop that began some months ago in President Obama's poll numbers. It is at best a partial answer to what ails the president and Democrats in Congress. The president's rhetoric over the past week suggests he has decided to try to fight anger with anger. If Americans are fed up with bank bailouts and bonuses going to their top executives, Obama wants people to believe that he resents them just as much.
Obama Endorses Deficit Task Force Obama endorses task force to recommend ways to battle spiraling budget deficits President Barack Obama Saturday endorsed a bipartisan plan to name a special task force charged with coming up with a plan to curb the spiraling budget deficit, though the idea has lots of opposition from both his allies and rivals on Capitol Hill. The bipartisan 18-member panel backed by Obama would study the issue for much of the year and, if 14 members agree, report a deficit reduction blueprint after the November elections that would be voted on before the new Congress convenes next year. The 14 would have to include at least half of the panel's Republicans — a big obstacle.
PAUL VOLCKER TO THE RESCUE President Barack Obama might have done well to keep former Federal Reserve Chairman Paul Volcker in closer reach during his first year of office rather than rely on the dubious advice of Timothy Geithner and Lawrence Summers. Too late for that—but hopefully not too late for Volcker to help the president in his future dealings with Wall Street.
Many are rejecting loan modifications Homeowners are opting to flee rather than accept loan modifications that might still leave them underwater on their mortgages. Desperate homeowners scrambling to get a loan modification through federal foreclosure relief programs are beginning to shun the offer, opting for a strictly business approach to the dilemma -- walking away. Because the majority of modifications don't reduce the principal payment on loans made during the overpriced boom years, people with underwater mortgages could still be drowning 10 years out.
Lessons from the Panic of 1907 by Clif Droke In their timely look at the panic of 1907, Robert Bruner and Sean Carr focus attention on what they believe to be the underlying causes of the '07 stock market crash and recession, drawing parallels between it and the credit crisis of more recent times. Their book, "The Panic of 1907: Lessons Learned from the Market's Perfect Storm," is now available in soft cover published by John Wiley & Sons (2007). The authors list seven contributing factors to the 1907 crisis:
Complexity
Buoyant economic growth
Inadequate safety buffers
Adverse leadership
Real economic shock
Undue fear and greed and other behavioral aberrations
Failure of collective action
Congress Sacks Samoan Economy . . . . For generations, American Samoa offered strong advantages for tuna canners. The close proximity to vast Pacific tuna schools, the islands' good port facilities, political association with the United States, and an abundance of relatively inexpensive labor (by American standards) enticed StarKist and Chicken of the Sea to locate their primary canning facilities in American Samoa. Although the workers were paid, in recent years, wages that were below the U.S. minimum, given the low taxes and living costs, these wages were enough to offer the average worker a standard of living that was superior to the denizens of other islands in that area of the Pacific. But then, in 2007, Washington came to the "rescue." As part of its efforts to provide a "living wage" for all Americans, Congress passed a law to step up the minimum wage to $7.25 per hour across all U.S. states and territories by 2009.
Bank of China to sell up to $5.8 billion in bonds Bank of China plans to sell up to 40 billion yuan ($5.8 billion) in bonds to replenish its capital and meet government standards following a record surge in lending last year amid Beijing's stimulus measures, a state-run news agency reported. Bank of China plans to sell up to 40 billion yuan ($5.8 billion) in bonds to replenish its capital and meet government standards following a record surge in lending last year amid Beijing's stimulus measures, a state-run news agency reported. Regulators have warned some banks that they have fallen below minimum capital requirements after handing out some 9.5 trillion yuan in loans last year.
The Unforeseen Consequences of Credit Legislation A hallmark of state failure is its incapacity to predict the market's response to the policies it puts forth. Indeed, on many levels the state is powerless to change the market's ends, instead only serving to redirect its means. Credit-card legislation passed last December sets forth a glut of regulations governing the ways in which credit-card agencies may transact with their customers. Various rules set to come into effect in July 2010 will
The Bill Comes Due for Socialism By Alan Caruba "The problem with socialism is that you eventually run out of other people’s money.” -- Margaret Thatcher, former British Prime Minister It began as a beautiful cruise to a land of “hope and change”, but it has become a nightmare in which the ship of state is being deliberately steered toward a whirlpool of debt from which, if Obama is successful, the nation cannot escape. One of the primary reasons the U.S. economy has grown over the years has been the confidence in its innovation and productivity. It has generated investment from around the world from those who wanted to profit from our success story. There was a time when U.S. securities were the safest in the world, but that is no longer the case.
Prepare Now to Escape Obama's Retirement Trap As the United States moves into a new decade of military overreach abroad and national bankruptcy at home, Washington is in a desperate search for more revenue and a solution to the future financing of the trillions in national debt obligations currently held by foreign central banks and investors. Economists, politicians and smart investors know the dollar's days as the world reserve currency are numbered as is our ability to finance the national debt.
450,000 at risk in foreclosure-prevention program Hundreds of thousands of troubled homeowners who are making lower mortgage payments on a trial basis are at risk of being kicked out of President Obama's foreclosure-prevention program. Companies that service the mortgages have until Jan. 31 to review all trial modifications that have been underway for several months under the Home Affordable Modification Program (HAMP), according to a Treasury Department guideline issued late last month. The Treasury Dept. said it would issue new guidelines next week, but wouldn't give details.
Thoughts on the End Game . . . . As I wrote in my 2010 forecast, this year is a waiting game. There are so many choices we must make, and the paths we will take from those choices vary wildly. But make no mistake, we are coming close to the end game. Some countries and economies are closer to that point than others, but the entire developed world is lurching, in almost drunken fashion, towards our economic denouement.
Taking Tea with the Lizards Joe Bageant The Republican Party will beat the living piss out of anybody for a buck. The Democrats will fly the flag of FDR, even as they pirate the public coffers on behalf of Wall Street. Don't think the American people have not noticed these things. After thirty years of pistol whipping and emptying of their wallets, they've started to figure out there just may be a public robbery underway, with both parties as accomplices. And so Americans at both ends of the political spectrum are finally wising up to the need for a third party.
Sam’s Club Cuts 11,200 Jobs SAN FRANCISCO (Reuters) - Sam's Club, the warehouse club division of Wal-Mart Stores Inc is cutting roughly 11,200 jobs, or about 10 percent of its workforce, as it outsources in-store product demonstrations and eliminates new business membership representative jobs. Sam's Club Chief Executive Officer Brian Cornell said on Sunday that the retailer would outline charges associated with the job cuts in February, when it releases fourth-quarter results. He said he did not expect any "material impact" on its financial results. "We look at this as an investment in the in-club experience," Cornell said in an interview. "This is not a cost-cutting move for us in the short term. We really hope it will be cost neutral for our operation. It's an investment in building loyalty, enhancing the member experience and driving future growth."
District unemployment reached 12.1 percent in December Unemployment reached a record 12.1 percent in the District in December, keeping the city's jobless rate well above national levels and much higher than in Virginia and Maryland. The District's unemployment rate rose from 11.8 percent in November, according to a Bureau of Labor Statistics report released Friday, even as the nation's jobless rate stabilized at 10 percent in December. Maryland's unemployment level increased to 7.5 percent from 7.3 percent, and Virginia's rose to 6.9 percent after staying at 6.6 percent for four straight months.
California's unemployment rate stays flat at 12.4% The jobless rate remains unchanged from November's revised figure as employers lay off 38,800 workers in December, capping a dismal year in which the state lost more than half a million jobs. California employers cut more workers from their staffs in December, capping a dismal year in which the state lost more than half a million jobs. Payrolls shrank by 38,800 jobs last month, while the unemployment rate remained flat at 12.4% from the revised figure in November, which previously was pegged at 12.3%
Unemployed in an Abnormal Business Cycle Fear. You can almost smell it. So far, there's just a whiff of it...a faint odor...a little trace in the air...like the smell in a subway car after a bum has left. Yesterday, the Dow fell 213 points. Oil dropped to $76. Gold lost $9. What caused it? What sets off a crash? Yesterday was hardly a crash. But our Crash Alert flag still flies. Because this is a market in danger. It is a market looking for a reason to crash. You never know for sure when or why markets crash. At a certain point, markets become like drunks who want to play a game of Russian roulette. First, they have to find the revolver. Then, they find the trigger.
Health Care Is Dead—Just Don't Tell the Left If you needed any additional evidence that health-care-reform-as-we-know-it has gone the way of the Dodo, look no further than Obama's remarks on the subject today: "We've gotten pretty far down the road, but I have to admit, we've run into a bit of a buzz saw along the way. The long process of getting things done runs headlong into the special interests, their armies of lobbyists, and partisan politics aimed at exploiting fears instead of getting things done. And the longer it's taken, the uglier the process has looked."
What Would a Tea Party-Led United States Look Like? Although post-election research may ultimately reveal that the Democrats, Independents, and Republicans who voted for Scott Brown did not consider themselves Tea Partiers, let's, for the sake of argument, say that the Massachusetts U.S. Senate race was another election won by the Tea Partiers, and the values and planks they stand for.
Oil in Haiti - Economic Reasons for the UN/US occupation There is evidence that the United States found oil in Haiti decades ago and due to the geopolitical circumstances and big business interests of that era made the decision to keep Haitian oil in reserve for when Middle Eastern oil had dried up. This is detailed by Dr. Georges Michel in an article dated March 27, 2004 outlining the history of oil explorations and oil reserves in Haiti and in the research of Dr. Ginette and Daniel Mathurin. There is also good evidence that these very same big US oil companies and their inter-related monopolies of engineering and defense contractors made plans, decades ago, to use Haiti's deep water ports either for oil refineries or to develop oil tank farm sites or depots where crude oil could be stored and later transferred to small tankers to serve U.S. and Caribbean ports. This is detailed in a paper about the Dunn Plantation at Fort Liberte in Haiti.
Haiti: An Unwelcome Katrina Redux by Cynthia McKinney George W. Bush, massive military deployment, logistical snags and slow aid delivery are evocative of the Hurricane Katrina debacle. Cynthia McKinney draws attention to the construction of the U.S. fifth-largest embassy in the world in Port-au-Prince, the discovery of oil resources in Haiti, the existence of decade-old plans to exploit Haiti’s deep water ports for oil-related activities. From the beginning, in fact, U.S. assistance to Haiti has looked more like an invasion than a humanitarian relief operation.
[UK] Terrorist threat level raised to 'severe' Britain's terrorist threat level was raised tonight from “substantial” to “severe” - meaning that counter-terrorism agencies believe an attack is “highly likely”. The measure was approved at a meeting of the Government’s Cobra emergency committee and announced by Alan Johnson, the Home Secretary. The Times understands that the decision to raise the threat level is connected to the conference on Afghanistan taking place at Lancaster House, London, next Thursday.
Bolivia, Costa Rica hit by strong earthquakes Bolivia and Costa Rica were struck by strong earthquakes with magnitudes of up to 5.3 on the Richter scale on Saturday, the US Geological Survey reported. Bolivia was hit by two quakes within an hour, one with a magnitude 5.3 and other 5.2, the Virginia-based earthquake monitoring centre reported. The border region of Costa Rica and Panama experienced two quakes in the same time period, one a magnitude of 5.2 and the other 4.7.
Venezuela oil 'may double Saudi Arabia' A new US assessment of Venezuela's oil reserves could give the country double the supplies of Saudi Arabia. Scientists working for the US Geological Survey say Venezuela's Orinoco belt region holds twice as much petroleum as previously thought. The geologists estimate the area could yield more than 500bn barrels of crude oil. This assessment is far more optimistic than even the best case scenario put forward by President Hugo Chavez.
One quarter of US grain crops fed to cars - not people, new figures show New analysis of 2009 US Department of Agriculture figures suggests biofuel revolution is impacting on world food supplies One-quarter of all the maize and other grain crops grown in the US now ends up as biofuel in cars rather than being used to feed people, according to new analysis which suggests that the biofuel revolution launched by former President George Bush in 2007 is impacting on world food supplies.
Bin Laden claims Christmas bombing attempt CAIRO — Osama bin Laden claimed responsibility for the failed attempt to bomb a Detroit-bound airliner on Christmas in a new audio message released Sunday threatening more attacks on the United States. The United States said there was no indication to suggest that bin Laden or any of his top lieutenants had anything to do with the attempted attack and that the claim may have been motivated by the wish of the terror network's leaders to appear in control of al Qaeda's offshoots.
Bin Laden Says "Hi" to American President . . . . In a message carried by the Al Jazeera Arabic news channel, Bin Laden addressed President Barak Obama saying there would be no peace for America unless there was security for Palestinians. He described the attempt by Nigerian Umar Farouk Abdulmutallab to detonate a bomb on plane on Christmas day as a "confirmation" of previous attacks, including September 11. He promised further attacks if the US continued to support Israel.
U.S. appears to lower expectations in Middle East Reporting from Jerusalem - As U.S. envoy George J. Mitchell wrapped up his Mideast trip Friday with little to show for his efforts to kick-start peace talks, the Obama administration was signaling a growing pessimism that Israelis and Palestinians would return to negotiations any time soon. In his first visit since November, Mitchell met separately with Israeli Prime Minister Benjamin Netanyahu and Palestinian Authority President Mahmoud Abbas. But officials on both sides said little progress was made toward restarting talks that collapsed a year ago.
War Looms Between Israel and Hezbollah It looks like a hop, skip and a jump. There’s the first electrified fence, then the dirt strip to identify footprints, then the tarmac road, then one more electrified fence, and then acres and acres of trees. Orchards rather than tanks. Galilee spreads beyond, soft and moist and dark green in the winter afternoon—a peaceful Israel, you might think. And a peaceful Lebanon to the north, tobacco plantations amid the stony hills, just an occasional UN armoured vehicle to keep you on your toes. “Major Pardin says you cannot take pictures,” a Malaysian UN soldier tells me. Then a second one says the same. Then along comes a Lebanese army intelligence officer and stares at our papers. “OK, you have permission,” he declares, and I snap away with my old 36-frame real-film Nikon; the fields, the frontier fence, the high-tech surveillance tower on the horizon. This must be the most photographed border in the world.
Putin warns against despotism, chaos in Russia Russian Prime Minister Vladimir Putin on Friday warned against the dangers of totalitarianism and despotism but said Russia must not adopt a similar political system to its neighbour Ukraine. "We shouldn't allow the 'Ukraine-ization' of political life in Russia but we should on no account slide in the other direction, towards totalitarianism and despotism," Putin said.
---- more news on situation in Greece ----
ECB president: Greece must put finances in order BERLIN -- Greece and other euro-zone countries with excessive budget deficits must do everything they can to put their finances in order, the president of the European Central Bank said in an interview published Saturday. The European Union has been pressing Athens to implement a strict austerity plan and plug its deficit, which stands at more than four times the EU-mandated limit of 3 percent of gross domestic product. "Not only Greece, but also other countries - that goes without saying - must do everything they can to put their national finances in order, bringing them fully into line with the provisions of the Stability and Growth Pact," ECB President Jean-Claude Trichet said in an interview with the German weekly Focus.
Greeks fret about faulty data ATHENS, Greece -- Greece is greeting European outrage over its dubious economic data with repentance, defensiveness and fear that no one will believe them again - even if they do clean up the statistics and accounting agencies slammed by an EU report for faking growth and deficit figures. "Right now, even if everything they say is correct, they are not going to believe it," Manolis Kontopirakis, who headed Greece's statistics agency between 2004 and 2009, told the AP. Kontopirakis quit shortly after Prime Minister George Papandreou's Socialists took over from the conservative New Democracy government in October. He angrily refuted claims his agency had knowingly forwarded the faulty data, which he said had hurt Greece's standing abroad.
Analysts wary of Greece's debt crisis plan
ECB Provopoulos: Greek Economy 'Unwaveringly Tied' To Euro: Greece's economy is "unwaveringly tied" to the euro, and the country will make the "bold" adjustments needed to fix its problems and remain in the single currency union, European Central Bank Governing Council member and Bank of Greece Governor George Provopoulos said Friday. Writing in the Financial Times, Provopoulos insisted that the idea Greece will leave the eurozone and create its own national currency is "based on flawed reasoning."
Greece's Economy Discussing Greece's economic state with Ulrich Leuchtmann, head of FX research at Commerzbank and CNBC's Silvia Wadhwa
Greek prime minister urges protesting farmers to end roadblocks, says no room for handouts ATHENS, Greece - The Greek prime minister has urged protesting farmers to end their eight-day roadblock campaign, saying Friday that Greece's debt crisis left no room for handouts. Prime Minister George Papandreou said it would be "a crime against Greeks' prosperity and security" if the government caved in to demands from pressure groups. The farmers are blocking highways and border crossings to demand payment of delayed aid and new subsidies, in what is seen as a major test for the center-left government elected in October.
Papaconstantinou Expects Greek Debt to Peak Next Year
Greece's Austerity Plan is 'Decade-Long Project' Airtime: Wed. Jan. 20 2010 | 5:00 ST ET The euro dropped to a 5-month low versus the dollar Wednesday as concerns about Greece's fiscal problems nagged investors. Michael Massourakis from Alpha Bank called the country's austerity plan "a decade-long project" in that after the proposed three-year period "the debt-to-GDP ratio will still remain at around 113%."
Analysts wary of Greece's debt crisis plan
Greece Remains a Concern: Fitch Airtime: Wed. Jan. 20 2010 | 5:00 ST ET Greece remains a concern for rating agency Fitch, which says that after two downgrades it will continue to keep the country on negative watch. CNBC's Stephane Pedrazzi spoke to Brian Coulton from Fitch to find out why the agency is so concerned.
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