Saturday, September 3, 2011

SAR #11245

It is easier to recognize prejudices in others.

The Pause that Refreshes Reconsiders: International debt refinancing/rescheduling talks with Greece have been suspended because Athens deficit is growing faster than expected and austerity measures are tanking the economy faster than expected and the Greeks don't seem anxious to privatize the Acropolis, either.

Picnic Basket: Just in time for Labor Day, hiring grinds to a halt and no new jobs get created. Those who still have jobs can take the day off and celebrate.

Best Guess: If BofA's residential loan portfolio is typical of the industry, about 35% of the $413 billion will go sour (or, more likely, has already gone sour), and it will suffer a 50% haircut on them – which is a $70 billion loss. And that's several times what BofA has set aside.

Point of View: The White House expects unemployment to remain above 9% through the 2012 election, which will cause the voters to through Obama out of office. How saying this (even though it is undoubtedly true) is going to help either the country or Obama is obscure. He could propose a massive - $2 trillion or more - jobs program, which the Republicans would kill, and then go to the people putting the blame where it belongs. Or he could do what few piddling little things the GOP might permit him and claim victory. Right, piddling it will be.

Cliff Note: The question was “Is austerity killing Europe's Recovery?” If you said 'Yes', you get an “A”. For “A+” the answer is 'What recovery?'

Damn Foreigners: US retail gasoline prices are rising even though American motorists are buying less. Prices are being pushed up by a steady increase in international gasoline demand. Americans may be using less, but drivers in developing nations are using more. How do they get away with using our gasoline?

Pin the Tail on The Public: In the last 5 years, US bankers have been paid 1) Well. 2) Very Well. 3) Surprisingly well for ruining the economy. 4) Over $2.2 trillion. 5) A lot more than has been spent on education.

Datum: One in seven Americans and 25% of the children in the US now live in poverty.

Pharaoh’s Army: According to PIMCO's el-Erain, America has become a country where pressures from growing inequality are threatening the nation's social cohesion. If there are not adequate public and private sector responses, “this phenomenon will damage the welfare of current and future generations.” Or, “You reap what you sow.”

Porn O'Graph: Parking problems.


OSR said...

Damn Foreigners-Let's not forget the games that are played with US refinery capacity seasonally. Maintenance outages at the height of driving season are par for the course, since there is no pesky competition to worry about. These guys make Enron look like pikers.

I'm Not POTUS said...

Absolutely it is "our" oil, and it is much more "civilized" of us to let "them" borrow enough of it to get addicted to it and when we, through "the Banksters", turn off the taps, we won't feel any guilt when they kill each other off fighting for the scraps that fall of the international trade table.

International Debt Financing, it's whats for dinner?