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Monthly Archives: May 2011

Revised Data Shows Weaker Manufacturing Fall and Also a Weaker Recovery

“There’s been a lot of happy talk recently about the revival of U.S. manufacturing . According to an article in theNew York Times, “manufacturing has been one of the surprising pillars of the recovery. “ In a Forbes.com columnentitled “Manufacturing Stages A Comeback,” well-known geographer Joel Kotkin talks about “the revival of the country’s long distressed industrial sector.” The Economist writes that “against all the odds, American factories are coming back to life.”*

Truly, I’d like to believe in the revival of manufacturing as much as the next person. Manufacturing, in the broadest sense, is an essential part of the U.S. economy, and any good news would be welcome.

Unfortunately, the latest figures do not back up the cheerful rhetoric….

Full article and chart

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A Potential Criminal Becomes Role Model For Grad Students

Why a potential criminal you ask: because before being hired to Citigroup he sold a defunct mortgage company to Citigroup for around $400+ Million. C Shareholders had to eat the  loss just before the whole sub-prime crisis got started.

Yes folks I will not let any of these issues go; for we have criminals running around free sending the wrong messages to developing minds.

Full article

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Sunday Afternoon Interweb Fun: Woman Wins Court Case To Masturbate at Work

“Ana Catarian Bezerra is a 36-year-old Brazilian woman who suffers from a chemical imbalance that triggers severe anxiety and hypersexuality. Ana, an accountant by day, began to have problems at work because the only way to relieve said anxiety is by masturbating. A lot. Now, after winning a court battle and seeking professional medical help, Ana is allowed to masturbate and watch porn — using her work’s computer, no less — legally.”

Full article

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Obama Joins The Doomsday Bandwagon if Debt Limit is Not Raised

“(Reuters) – President Barack Obama warned Congress that failing to raise the debt limit could lead to a worse financial crisis and economic recession than 2008-09 if investors began doubting U.S. credit-worthiness.

In remarks recorded last week and broadcast by CBS News on Sunday, Obama repeated his stance that Republicans should not link the debt ceiling decision to spending cuts as part of deficit-reducing measures.

“If investors around the world thought that the full faith and credit of the United States was not being backed up, if they thought that we might renege on our IOUs, it could unravel the entire financial system,” Obama told a CBS News town-hall meeting.”

Full article

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What If the U.S. Treasury Defaults?

What If the U.S. Treasury Defaults?

Stanley Drukenmiller says it’s OK

”People aren’t going to wonder whether 20 years ago we delayed an interest payment for six days. They’re going to wonder whether we got our house in order.’

winterdruckenmi

‘A financial crisis is surely going to happen as big or bigger than the one we had in 2008 if we continue to behave the way we’re behaving,” says Stanley Druckenmiller, the legendary investor and onetime fund manager for George Soros. Is this another warning from Wall Street that Congress must immediately raise the federal debt limit to prevent the end of civilization?

No—Mr. Druckenmiller has heard enough of such “clamor and hyperbole.” The grave danger he sees is that politicians might give the government authority to borrow beyond the current limit of $14.3 trillion without any conditions to control spending.

One of the world’s most successful money managers, the lanky, sandy-haired Mr. Druckenmiller is so concerned about the government’s ability to pay for its future obligations that he’s willing to accept a temporary delay in the interest payments he’s owed on his U.S. Treasury bonds—if the result is a Washington deal to restrain runaway entitlement costs.

“I think technical default would be horrible,” he says from the 24th floor of his midtown Manhattan office, “but I don’t think it’s going to be the end of the world. It’s not going to be catastrophic. What’s going to be catastrophic is if we don’t solve the real problem,” meaning Washington’s spending addiction.

Widely credited with orchestrating Mr. Soros’s successful shorting of the British pound in 1992, Mr. Druckenmiller also built his own fund, Duquesne Capital, into a $12 billion titan. He announced plans last year to close the fund and now reports, “I have no clients.” He is still managing his own money, which Forbes magazine recently estimated at $2.5 billion.

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Secret Desert Force Set Up by Blackwater’s Founder

ABU DHABI, United Arab Emirates — Late one night last November, a plane carrying dozens of Colombian men touched down in this glittering seaside capital. Whisked through customs by an Emirati intelligence officer, the group boarded an unmarked bus and drove roughly 20 miles to a windswept military complex in the desert sand.

The Colombians had entered the United Arab Emirates posing as construction workers. In fact, they were soldiers for a secret American-led mercenary army being built by Erik Prince, the billionaire founder of Blackwater Worldwide, with $529 million from the oil-soaked sheikdom.

Mr. Prince, who resettled here last year after his security business faced mounting legal problems in the United States, was hired by the crown prince of Abu Dhabi to put together an 800-member battalion of foreign troops for the U.A.E., according to former employees on the project, American officials and corporate documents obtained by The New York Times.

The force is intended to conduct special operations missions inside and outside the country, defend oil pipelines and skyscrapers from terrorist attacks and put down internal revolts, the documents show. Such troops could be deployed if the Emirates faced unrest or were challenged by pro-democracy demonstrations in its crowded labor camps or democracy protests like those sweeping the Arab world this year.

The U.A.E.’s rulers, viewing their own military as inadequate, also hope that the troops could blunt the regional aggression of Iran, the country’s biggest foe, the former employees said. The training camp, located on a sprawling Emirati base called Zayed Military City, is hidden behind concrete walls laced with barbed wire. Photographs show rows of identical yellow temporary buildings, used for barracks and mess halls, and a motor pool, which houses Humvees and fuel trucks. The Colombians, along with South African and other foreign troops, are trained by retired American soldiers and veterans of the German and British special operations units and the French Foreign Legion, according to the former employees and American officials.

In outsourcing critical parts of their defense to mercenaries — the soldiers of choice for medieval kings, Italian Renaissance dukes and African dictators — the Emiratis have begun a new era in the boom in wartime contracting that began after the Sept. 11, 2001, attacks. And by relying on a force largely created by Americans, they have introduced a volatile element in an already combustible region where the United States is widely viewed with suspicion.

Read the full article at the NYT

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Heard on the Street

Actually it was the radio; but  if each American household would spend a pittance of $64 on American made products that collectively it would create 200k jobs.

Perhaps we could all focus on American made products  for our next few purchases.

How to create jobs

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Par For The Course Fun With The CIA

Lahore, May 12(ANI): Central Intelligence Agency (CIA) operatives have infiltrated the Taliban and Al-Qaeda networks, and have created their own Tehrik-e-Taliban Pakistan (TTP) force in order to destabilise Pakistan, a Pakistani newspaper has claimed.

Much of the information-gathering network of Pakistan’s supreme security service was curtailed in the country’s tribal areas during former military ruler Pervez Musharraf’s era, consequently giving an edge to America’s CIA, The Nation reported.

The CIA was given direct access to the entire territory of North and South Waziristan, which has since developed its stronghold in the belt, it added.

According to sources, the CIA’s operations, which were suspended in Balochistan, Punjab, Islamabad and other areas of the country after the Raymond Allen Davis (RAD) incident, have also been restored.

Responding to a query, the sources said that the CIA operatives have infiltrated the Taliban and Al-Qaeda networks, and have created their own TTP force, the paper said.

This force has been recruited, trained and equipped by these CIA operatives to target the Pakistan Army personnel, armed forces’ installations, markets, hospitals, schools and public places to destabilise Pakistan, the paper added.”

Full article

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Late Night Fun With NIA

College Conspiracy

The above link froze on me even after several restarts….so here it is again

[youtube:http://www.youtube.com/watch?v=VpZtX32sKVE 450 300]

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FAST TIMES AT HUGH HENDRY HIGH: DEEP THOUGHTS FROM THE HUGHMOBILE

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While all of these champagne socialists travel around the world by private jet, Hugh Hendry (’tis I) prefers the Smart Car. Why? Because I am smarter than all of you inflationist wankers, ya? I called Jimmy Rogers the other day just to remind him of the massive deflation we face. All of the central bankers are stupid socialists, who think printing money will actually work. Buy bonds, and stop behaving like a neanderthal. Oh yea, China will perish soon. I WOULD RECOMMEND YOU PANIC.

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[youtube:http://www.youtube.com/watch?v=caI6R4UrDfg&feature=related 550 412]

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Canada Real Estate: Are Price-to-Rent Ratios Flashing Warning Signs?

In the following analysis, I will turn the focus to price to rent ratios in major Canadian cities.  The data sources are the Canadian Real Estate Association (CREA) who kindly provided me with quarterly house price data going back to Q1 1980, and the Centre for Urban Economics and Real Estate at the Sauder School of Business.  They have created a rent index that tracks the change in rent in various large cities in Canada by tracking the change in Rented Accommodation Subindex of the Consumer Price Index.

Below, I will examine changes in rents and house prices in Vancouver, Calgary, Edmonton, Winnipeg, Ottawa, Toronto, and Halifax.

Before examining the data, let’s review why rents are an important determinant of the value of housing (both investment housing and residential housing).

Why rents matter

Interestingly, it was the house price to rent ratio and the house price to income ratio that alerted some economists to the severe overvaluation in the US housing market (precious few as those economists were).  It is worth examining why this ratio is an indicator of potential house price overvaluation and why it applies to both residential and investment housing.

Full article

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Breaking: IMF boss Strauss-Khan pulled off plane, arrested in sodomy probe

Full story at the NY post

A top French politician who heads the International Monetary Fund was hauled off an Air France flight at Kennedy Airport today on suspicion of sodomizing a Manhattan hotel maid, sources told The Post.

Three Port Authority detectives took Dominique Strauss-Khan into custody in the plane’s first-class cabin just two minutes before it was due to depart for Paris, said police sources.

Strauss-Khan, 62, was turned over to NYPD officers from the Midtown South precinct.

Around noon today, a maid at the hotel knocked on the door of Strauss-Khan’s room.

After letting the maid in, Strauss-Khan allegedly threw the maid on the room’s bed and forced her to perform oral sex on him, said police sources.

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