Goooooood Morning Fiatnam!

Friday, October 24, 2014

About 25 Eurozone Banks to Fail ECB Stress Tests

Something to watch for on Sunday:

About 25 Eurozone Banks to Fail ECB Stress Tests - WSJ - WSJ
List Includes Italian Banks but None From Germany or France

Lenders Facing Soaring Costs Shutting Out U.S. Homebuyers

Lenders Facing Soaring Costs Shutting Out U.S. Homebuyers - Bloomberg

The higher costs and concerns about buybacks are driving the decline in mortgages for home purchases. It will slow to $635 billion this year, a 13 percent drop from 2013, according to MBA estimates.

The DEA Once Turned A 14-Year-Old Into A Drug Kingpin. Welcome To The War On Drugs

The DEA Once Turned A 14-Year-Old Into A Drug Kingpin. Welcome To The War On Drugs

"…the DEA instructs agents not to tell the truth about sources of key intelligence."
"The "highest-paid snitch in DEA history" was also found to have lied repeatedly in testimony. Despite his reputation, he recently resumed work with the DEA."
"The DEA allows informants to break the law, but have no records as to how often it happens."
"One of America's most notorious terrorists once served as a DEA informant."
"Another informant allegedly shot and killed a man who confronted him for molesting his child."
"The DEA strung one informant along for 20 years with the promise of citizenship. She still hasn't received it."
The DEA once turned a teenager into a drug kingpin so he could act as an informant."
"I was just a kid when the agents pulled me out of high school in the ninth grade and had me out to 3 in the morning every night," Wershe told The Fix in 2013. "They gave me a fake ID when I was 15 that said I was 21 so I could travel to Vegas and to Miami to do drug deals….But in 1988, then 17 and no longer an informant, Wershe was pulled over and busted for work in the same drug business as the one to which the DEA had introduced him. The 17 pounds of cocaine found in his car resulted in a life sentence. He's the only convict still behind bars in Michigan to receive a life sentence as a minor under the state's now-repealed "650-lifer" law. Many of the targets whom Wershe helped put in jail have long since been released."
The Associated Press reported in August that the DEA had paid an Amtrak secretary $854,460 over nearly 20 years as an informant to pass confidential information about passenger reservations. But as the AP reported, Amtrak police are already part of an anti-drug task force that includes the DEA, and would have given the agency that information free of charge."

Democrat bigots


Charles Stewart, a political scientist was retained by the Justice Department to testify against voter identification laws and other election integrity measures. His testimony argued that ending same day voter registration and requiring voters to vote in the precinct where they live constitutes racial discrimination.  
When asked if terminating the ability to register to vote on the day that someone casts a ballot impacts blacks disproportionately, Stewart testified in court that it did. Stewart:  
"It's also the case that -- well, yes, so it would, empirically more likely affect African Americans. Also, understanding within political science, that people who register to vote the closer and closer one gets to Election Day tend to be less sophisticated voters, tend to be less educated voters, tend to be voters who are less attuned to public affairs. That also tells me from the literature of political science that there are likely to be people who will end up not registering and not voting. People who correspond to those factors tend to be African Americans, and, therefore, that's another vehicle through which African Americans would be disproportionately affected by this law."  
Less sophisticated. Less educated. AKA low information voters.

If a Republican had said such things, he'd be hammered with allegations of racism. But these are terms used by a presumably highly paid consultant hired by a black Democrat attorney general serving under a black Democrat president.

Democrats pride themselves on prioritizing a low threshold for voting. Strikes me,  it's not so much for protecting someone's rights as it is about exploiting those African Americans (and others) who can't figure out how badly they're being used, not to mention publicly disparaged.

Just dusting this off: Global monetary policy: A nasty whiff of inflation

Just dusting this off
Global monetary policy: A nasty whiff of inflation | The Economist

INFLATION was supposed to be dead. Yet back-of-the-envelope estimates by The Economist suggest that in September America's 12-month rate of consumer-price inflation will jump above 4%—the highest since 1991. If so, this more than justifies the Federal Reserve's decision this week to raise its fed funds rate by another quarter of a percentage point, to 3.75%. Despite calls from several American politicians and economists for a “compassionate pause” in the Fed's tightening, because of fears that Hurricane Katrina could depress economic output, the Fed is more worried about the risk of higher inflation than about slower growth.
Average petrol prices in America fell back to $2.76 a gallon this week, from a peak of $3.07 a fortnight ago. However, the immediate path of prices is uncertain: Hurricane Rita, an even bigger storm that was heading for Texas this week, may well do further damage to America's Gulf coast refining capacity. Even without an extra push from Rita, the average price of a gallon in September will be well above that of last month, giving consumer-price inflation, already 3.6% in August, an extra fillip.

Brazil Water Crisis Seen Worsening As Sao Paulo Nears ‘Collapse’

Brazil Water Crisis Seen Worsening As Sao Paulo Nears ‘Collapse’

Sao Paulo residents were warned by a top government regulator today to brace for more severe water shortages as President Dilma Rousseff makes the crisis a key campaign issue ahead of this weekend’s runoff vote.
“If the drought continues, residents will face more dramatic water shortages in the short term,” Vicente Andreu, president of Brazil’s National Water Agency and a member of Rousseff’s Workers’ Party, told reporters in Sao Paulo. “If it doesn’t rain, we run the risk that the region will have a collapse like we’ve never seen before,” he later told state lawmakers.

Could France sell the Mona Lisa to pay off its debts? - France 24

Culture - Could France sell the Mona Lisa to pay off its debts? - France 24

``The hypothesis of a general sell-off of France's massive cultural heritage presents a number of significant hurdles. For a start, it's against the law. Article 451-5 of the French "Heritage Code" law governing national treasures stipulates: "Collections held in museums that belong to public bodies are considered public property and cannot be otherwise."''

Interest rates could stay low permanently, says Bank of England deputy governor

Interest rates could stay low permanently, says Bank of England deputy governor - Telegraph

Interest rates could now be permanently lower, a prominent member of the Bank of England's committee of interest rate setters has warned... This underlying rate of interest has declined globally, "driven remorselessly downwards" for a "variety of reasons". These changes are not manufactured by central banks, but brought about by "real economic changes - they have consequences for, but do not originate in, monetary policy".'' -- So central banker swears the "permanently lower rates" are not the responsibility of central banks... hmm....

Thierry Leyne, Strauss-Kahn’s Hedge-Fund Partner, Dies at 49

Thierry Leyne, Strauss-Kahn’s Hedge-Fund Partner, Dies at 49 - Bloomberg

The summer, thankfully, has been largely bereft of the dismal trend of bankers committing suicide, but as Bloomberg reports, Thierry Leyne, a French-Israeli banker and partner of Dominique Strauss-Kahn, the disgraced former chief of the IMF, was found dead Thursday after apparently taking his own life by jumping off the 23rd floor of one of the Yoo towers, a prestigious residential complex in Tel Aviv. This is the 16th financial services executive death this year.

Food Prices Jump in Ebola-Hit Countries


Food prices have climbed by an average of 24 percent across the three countries worst hit by the Ebola outbreak, forcing some families to reduce their intake to one meal a day, a World Food Program spokeswoman said Friday.
The sobering news was offset somewhat by reports Friday that the outbreak has been contained in Senegal and that four people suspected of infection have tested negative in Spain.   
The food-producing regions of Guinea, Sierra Leone and Liberia in West Africa have been severely affected by the worst outbreak on record of the virus has killed nearly 4,500 people.

Rest assured we have no food inflation here in the States