Part 1
Part 2
Sunday, March 22, 2009
Saturday, March 21, 2009
A new sign of the times?
I'm a member of Las Vegas Athletic Club (LVAC) and make an attempt to workout several times a week. Well, on my way home from the gym tonight, while leaving the LVAC parking lot and getting ready to turn onto the main road (West Flamingo - which is a very nice area) I noticed a clean-cut man, mid to late thirties, holding a cardboard sign... The sign said: Laid off father of three - will work for food/money.
Wow I thought, first time I've seen this...
Now don't get me wrong, Las Vegas has more than its fair share of homeless panhandlers, but this was much different and it hit home hard...
You see, minus a nest egg, a job and earnest preparations, this guy wasn't much different than me, and who knows - depending on how long this downturn lasts and whether or not my luck holds out, I can't completely discount the fact that some day this COULD be me...
Anyway, I had about five bucks in quarters in my car's cupholder, so I pulled over and gave it to him. He then stated, thanks, but I really don't want a handout, I want to work. Do you have any work that I could do?
I honestly didn't and several impatient drivers behind me were already displaying signs of irritation, so I told him: no - sorry I don't, but best of luck to you - and I drove off into traffic.
My mind was then spinning and I couldn't stop thinking about how this is likely a budding new reflection of the scary/desperate economic times we are in... I can only imagine, as this depression deepens, many more laid off fathers, mothers, grandparents, etc. who eventually will throw their shame aside too - as putting food on the table for their loved ones becomes far more important than pride...
Am I making too big a deal out of this, or is this indeed a new sign of the times?
Your Thoughts?
Best Regards
Randy
Wow I thought, first time I've seen this...
Now don't get me wrong, Las Vegas has more than its fair share of homeless panhandlers, but this was much different and it hit home hard...
You see, minus a nest egg, a job and earnest preparations, this guy wasn't much different than me, and who knows - depending on how long this downturn lasts and whether or not my luck holds out, I can't completely discount the fact that some day this COULD be me...
Anyway, I had about five bucks in quarters in my car's cupholder, so I pulled over and gave it to him. He then stated, thanks, but I really don't want a handout, I want to work. Do you have any work that I could do?
I honestly didn't and several impatient drivers behind me were already displaying signs of irritation, so I told him: no - sorry I don't, but best of luck to you - and I drove off into traffic.
My mind was then spinning and I couldn't stop thinking about how this is likely a budding new reflection of the scary/desperate economic times we are in... I can only imagine, as this depression deepens, many more laid off fathers, mothers, grandparents, etc. who eventually will throw their shame aside too - as putting food on the table for their loved ones becomes far more important than pride...
Am I making too big a deal out of this, or is this indeed a new sign of the times?
Your Thoughts?
Best Regards
Randy
Friday, March 20, 2009
New Integer Discovered!
Received the following via email today and had to share:
PALO ALTO, CA - An international mathematics research team announced today that they had discovered a new integer that surpasses any previously known value "by a totally mindblowing shitload." Project director Yujin Xiao of Stanford University said the theoretical number, dubbed a "stimulus," could lead to breakthroughs in fields as diverse as astrophysics, quantum mechanics, and Chicago asphalt contracting.
"Unlike previous large numbers like the Googleplex or the Bazillionty, the Stimulus has no static numerical definition," said Xiao. "It keeps growing and growing, compounding factorially, eating up all zeros in its path. It moves freely across Cartesian dimensions and has the power to make any other number irrational."
Jean-Luc Brossard, a researcher with the European consortium CERN, said the number is so staggeringly large that it is difficult for even mathematicians to grasp, let alone lay people.
"The number itself is incomprehensible by human minds, and can only be theoretically understood in a fractional parallel universe which we refer to as the DC dimension," said Brossard. "The best way to understand a stimulus is to imagine a dollar sign followed by a packed string of hexidecimal nanodigits, wound into a triple helix, woven into a dodecahedron, and stacked on top of one another. Now imagine you were a black hole on the far edge of the universe, trying to escape the stimulus at 30 times the speed of light. The stimulus would still catch up to you and ram your black hole with such furious, repeated force that it would cause your entire reality itself to collapse."
Xiao said the team discovered the number with the help of an international network of 24 nitrogen-cooled Cray Ultracluster supercomputers, the CERN particle accelerator, and "three pounds of Humboldt County Chronic."
"The exciting news is that with more powerful computers and drugs, we believe we are on the verge of discovering an even larger number, which we refer to as a 'stimulusconferencebill,'" said Xiao. "Speaker Pelosi has already promised us the funding."
PALO ALTO, CA - An international mathematics research team announced today that they had discovered a new integer that surpasses any previously known value "by a totally mindblowing shitload." Project director Yujin Xiao of Stanford University said the theoretical number, dubbed a "stimulus," could lead to breakthroughs in fields as diverse as astrophysics, quantum mechanics, and Chicago asphalt contracting.
"Unlike previous large numbers like the Googleplex or the Bazillionty, the Stimulus has no static numerical definition," said Xiao. "It keeps growing and growing, compounding factorially, eating up all zeros in its path. It moves freely across Cartesian dimensions and has the power to make any other number irrational."
Jean-Luc Brossard, a researcher with the European consortium CERN, said the number is so staggeringly large that it is difficult for even mathematicians to grasp, let alone lay people.
"The number itself is incomprehensible by human minds, and can only be theoretically understood in a fractional parallel universe which we refer to as the DC dimension," said Brossard. "The best way to understand a stimulus is to imagine a dollar sign followed by a packed string of hexidecimal nanodigits, wound into a triple helix, woven into a dodecahedron, and stacked on top of one another. Now imagine you were a black hole on the far edge of the universe, trying to escape the stimulus at 30 times the speed of light. The stimulus would still catch up to you and ram your black hole with such furious, repeated force that it would cause your entire reality itself to collapse."
Xiao said the team discovered the number with the help of an international network of 24 nitrogen-cooled Cray Ultracluster supercomputers, the CERN particle accelerator, and "three pounds of Humboldt County Chronic."
"The exciting news is that with more powerful computers and drugs, we believe we are on the verge of discovering an even larger number, which we refer to as a 'stimulusconferencebill,'" said Xiao. "Speaker Pelosi has already promised us the funding."
Three more banks bit the dust tonight
TeamBank, National Association, Paola, KS
Teambank, National Association, Paola, Kansas, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Great Southern Bank, Springfield, Missouri, to assume all of the deposits of Teambank. The 17 offices of Teambank will reopen as branches of Great Southern Bank on Saturday
As of December 31, 2008, Teambank had total assets of $669.8 million and total deposits of $492.8 million. Great Southern will assume $474 million in deposits and the FDIC will pay out $18.8 million directly to the broker. In addition to assuming all of the deposits of the failed bank, Great Southern Bank agreed to purchase approximately $656.5 million in assets at a discount of $100 million, and pay a 1 percent premium on deposits. The FDIC will retain the remaining assets for later disposition.
The FDIC and Great Southern Bank entered into a loss-share transaction. The FDIC will share 80/20 percent in the losses with Great Southern Bank on approximately $450 million in assets covered under the agreement. The loss-sharing arrangement is projected to maximize returns on the covered assets and to minimize disruptions for loan customers.
Colorado National Bank, Colorado Springs, CO
Colorado National Bank, Colorado Springs, Colorado, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Herring Bank, Amarillo, Texas, to assume all of the deposits of Colorado National.
The four offices of Colorado National will reopen as branches of Herring Bank on Saturday.
As of December 31, 2008, Colorado National had total assets of $123.5 million and total deposits of $82.7 million. In addition to assuming all of the deposits of the failed bank, Herring Bank agreed to purchase approximately $117.3 million in assets at a discount of $4.2 million, and pay a discount of 1.27% percent on deposits. The FDIC will retain the remaining assets for later disposition.
The FDIC and Herring Bank entered into a loss-share transaction. The FDIC will share 80/20 percent in the losses with Herring Bank on approximately $62 million in assets covered under the agreement. The loss-sharing arrangement is projected to maximize returns on the covered assets and minimize disruptions for loan customers.
FirstCity Bank, Stockbridge, GA
The Federal Deposit Insurance Corporation (FDIC) approved the payout of the insured deposits of FirstCity Bank, Stockbridge, Georgia. The bank was closed today by the Georgia Department of Banking and Finance, which appointed the FDIC as receiver.
The FDIC will provide payment to insured depositors by mailing checks for their insured funds on Monday morning. Direct deposits from the federal government, such as Social Security and Veterans' payments, will be transferred to SunTrust Bank (for the specific SunTrust branches, depositors should call the toll-free telephone number below).
Customers of FirstCity Bank with brokered deposits should contact their brokers about the status of their accounts. The FDIC will provide payment for insured brokered deposits once brokers provide the FDIC with the necessary documents to identify customers and permit a determination of their insured deposit.
As of March 18, 2009, FirstCity had total assets of $297 million and total deposits of $278 million. At the time of closing, the bank had approximately $778,000 in deposits that exceeded the insurance limits. This amount is an estimate that is likely to change once the FDIC obtains additional information from these customers
Teambank, National Association, Paola, Kansas, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Great Southern Bank, Springfield, Missouri, to assume all of the deposits of Teambank. The 17 offices of Teambank will reopen as branches of Great Southern Bank on Saturday
As of December 31, 2008, Teambank had total assets of $669.8 million and total deposits of $492.8 million. Great Southern will assume $474 million in deposits and the FDIC will pay out $18.8 million directly to the broker. In addition to assuming all of the deposits of the failed bank, Great Southern Bank agreed to purchase approximately $656.5 million in assets at a discount of $100 million, and pay a 1 percent premium on deposits. The FDIC will retain the remaining assets for later disposition.
The FDIC and Great Southern Bank entered into a loss-share transaction. The FDIC will share 80/20 percent in the losses with Great Southern Bank on approximately $450 million in assets covered under the agreement. The loss-sharing arrangement is projected to maximize returns on the covered assets and to minimize disruptions for loan customers.
Colorado National Bank, Colorado Springs, CO
Colorado National Bank, Colorado Springs, Colorado, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Herring Bank, Amarillo, Texas, to assume all of the deposits of Colorado National.
The four offices of Colorado National will reopen as branches of Herring Bank on Saturday.
As of December 31, 2008, Colorado National had total assets of $123.5 million and total deposits of $82.7 million. In addition to assuming all of the deposits of the failed bank, Herring Bank agreed to purchase approximately $117.3 million in assets at a discount of $4.2 million, and pay a discount of 1.27% percent on deposits. The FDIC will retain the remaining assets for later disposition.
The FDIC and Herring Bank entered into a loss-share transaction. The FDIC will share 80/20 percent in the losses with Herring Bank on approximately $62 million in assets covered under the agreement. The loss-sharing arrangement is projected to maximize returns on the covered assets and minimize disruptions for loan customers.
FirstCity Bank, Stockbridge, GA
The Federal Deposit Insurance Corporation (FDIC) approved the payout of the insured deposits of FirstCity Bank, Stockbridge, Georgia. The bank was closed today by the Georgia Department of Banking and Finance, which appointed the FDIC as receiver.
The FDIC will provide payment to insured depositors by mailing checks for their insured funds on Monday morning. Direct deposits from the federal government, such as Social Security and Veterans' payments, will be transferred to SunTrust Bank (for the specific SunTrust branches, depositors should call the toll-free telephone number below).
Customers of FirstCity Bank with brokered deposits should contact their brokers about the status of their accounts. The FDIC will provide payment for insured brokered deposits once brokers provide the FDIC with the necessary documents to identify customers and permit a determination of their insured deposit.
As of March 18, 2009, FirstCity had total assets of $297 million and total deposits of $278 million. At the time of closing, the bank had approximately $778,000 in deposits that exceeded the insurance limits. This amount is an estimate that is likely to change once the FDIC obtains additional information from these customers
Thursday, March 19, 2009
Updated look at the US Dollar
Dollar heading for worst week in 24 years
SYDNEY (Reuters) - The U.S. dollar was heading for its biggest weekly fall in 24 years on Friday as investors feared the Federal Reserve's plans to buy longer-term government debt would cheapen the world's reserve currency.
In early Asian trading, the dollar was nursing a loss for the week of 5.2 percent against a basket of major currencies .DXY. That was the steepest decline since 1985 when the major economies agreed a formal depreciation of the dollar in the Plaza Accord.
"This is a historic moment, the start of debasement of the world's reserve currency, and it feels to many participants that in the grand sweep of history we are witnessing the end of 'Rome' on the Potomac," said Alan Ruskin, a RBS strategist in Greenwich.
Analysts said the Fed's radical decision to buy $300 billion of longer-term government debt and vastly expand its balance sheet meant more and more of the U.S. currency would be created, straining demand.
It also caused Treasury yields to plunge by the most in 26 years, reducing the dollar's yield allure, while raising inflationary risks in the longer term.
Taken together, analysts said the safe-haven appeal of the U.S. dollar, which had soared to a three-year high against a basket of currencies only earlier this month, is tarnished.
"U.S. dollars will be flooding the world as the printing presses work overtime," said Stephen Koukoulas, a strategist at TD Securities in London.
"With the supply of the U.S. dollar growing and demand for U.S. dollar stable at best or falling sharply, the price of U.S. dollar has to fall," Koukoulas said in a note to clients titled "Bye bye U.S. dollar. Sell sell U.S. dollar!"
Click daily chart below for sharper image
As stated in my 2009 outlook: Economic Tsunami of 2009, I believe Sixty Five on the US Dollar index will be seen this year.
SYDNEY (Reuters) - The U.S. dollar was heading for its biggest weekly fall in 24 years on Friday as investors feared the Federal Reserve's plans to buy longer-term government debt would cheapen the world's reserve currency.
In early Asian trading, the dollar was nursing a loss for the week of 5.2 percent against a basket of major currencies .DXY. That was the steepest decline since 1985 when the major economies agreed a formal depreciation of the dollar in the Plaza Accord.
"This is a historic moment, the start of debasement of the world's reserve currency, and it feels to many participants that in the grand sweep of history we are witnessing the end of 'Rome' on the Potomac," said Alan Ruskin, a RBS strategist in Greenwich.
Analysts said the Fed's radical decision to buy $300 billion of longer-term government debt and vastly expand its balance sheet meant more and more of the U.S. currency would be created, straining demand.
It also caused Treasury yields to plunge by the most in 26 years, reducing the dollar's yield allure, while raising inflationary risks in the longer term.
Taken together, analysts said the safe-haven appeal of the U.S. dollar, which had soared to a three-year high against a basket of currencies only earlier this month, is tarnished.
"U.S. dollars will be flooding the world as the printing presses work overtime," said Stephen Koukoulas, a strategist at TD Securities in London.
"With the supply of the U.S. dollar growing and demand for U.S. dollar stable at best or falling sharply, the price of U.S. dollar has to fall," Koukoulas said in a note to clients titled "Bye bye U.S. dollar. Sell sell U.S. dollar!"
Click daily chart below for sharper image
As stated in my 2009 outlook: Economic Tsunami of 2009, I believe Sixty Five on the US Dollar index will be seen this year.
Below is a look at the Dollar Weekly chart:
U.N. panel says world should ditch dollar
LUXEMBOURG (Reuters) - A U.N. panel will next week recommend that the world ditch the dollar as its reserve currency in favor of a shared basket of currencies, a member of the panel said on Wednesday, adding to pressure on the dollar.
Currency specialist Avinash Persaud, a member of the panel of experts, told a Reuters Funds Summit in Luxembourg that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket.
Persaud, chairman of consultants Intelligence Capital and a former currency chief at JPMorgan, said the recommendation would be one of a number delivered to the United Nations on March 25 by the U.N. Commission of Experts on International Financial Reform.
"It is a good moment to move to a shared reserve currency," he said
Russia is also planning to propose the creation of a new reserve currency, to be issued by international financial institutions, at the April G20 meeting, according to the text of its proposals published on Monday.
It has significantly reduced the dollar's share in its own reserves in recent years.
Persaud said the panel had been looking at using something like an expanded Special Drawing Right, originally created by the International Monetary Fund in 1969 but now used mainly as an accounting unit within similar organizations.
The SDR and the old Ecu are essentially combinations of currencies, weighted to a constituent's economic clout, which can be valued against other currencies and indeed against those inside the basket.
U.N. panel says world should ditch dollar
Currency specialist Avinash Persaud, a member of the panel of experts, told a Reuters Funds Summit in Luxembourg that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket.
Persaud, chairman of consultants Intelligence Capital and a former currency chief at JPMorgan, said the recommendation would be one of a number delivered to the United Nations on March 25 by the U.N. Commission of Experts on International Financial Reform.
"It is a good moment to move to a shared reserve currency," he said
Russia is also planning to propose the creation of a new reserve currency, to be issued by international financial institutions, at the April G20 meeting, according to the text of its proposals published on Monday.
It has significantly reduced the dollar's share in its own reserves in recent years.
Persaud said the panel had been looking at using something like an expanded Special Drawing Right, originally created by the International Monetary Fund in 1969 but now used mainly as an accounting unit within similar organizations.
The SDR and the old Ecu are essentially combinations of currencies, weighted to a constituent's economic clout, which can be valued against other currencies and indeed against those inside the basket.
U.N. panel says world should ditch dollar
Central Banks Are Buying Gold for Their Reserves Now!
It is clear now that central banks are buying gold for their reserves. Here is a brief history leading to today and the present position of central banks as they turn to buying gold.
Central Banks Are Buying Gold for Their Reserves Now!
Central Banks Are Buying Gold for Their Reserves Now!
Nice Pigs Sir!
Last Tuesday, as President Obama got off the helicopter in front of the White House, he was carrying a baby piglet under each arm.
The squared away Marine guard snaps to attention, Salutes and says:
"Nice pigs, sir."
The President replies "These are not pigs...these are authentic Arkansas Razorback Hogs. I got one for Secretary of State Hillary Clinton and I got one for Speaker of The House Nancy Pelosi."
The squared away Marine again snaps to attention, Salutes and says,
"Excellent trade, sir."
Come on - you had to laugh at this one...
Hat tip FOFOA
The squared away Marine guard snaps to attention, Salutes and says:
"Nice pigs, sir."
The President replies "These are not pigs...these are authentic Arkansas Razorback Hogs. I got one for Secretary of State Hillary Clinton and I got one for Speaker of The House Nancy Pelosi."
The squared away Marine again snaps to attention, Salutes and says,
"Excellent trade, sir."
Come on - you had to laugh at this one...
Hat tip FOFOA
160 words from the FOMC meeting yesterday
"In these circumstances, the Federal Reserve will employ all available tools to promote economic recovery and to preserve price stability. The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and anticipates that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period. To provide greater support to mortgage lending and housing markets, the Committee decided today to increase the size of the Federal Reserve's balance sheet further by purchasing up to an additional $750 billion of agency mortgage-backed securities, bringing its total purchases of these securities to up to $1.25 trillion this year, and to increase its purchases of agency debt this year by up to $100 billion to a total of up to $200 billion. Moreover, to help improve conditions in private credit markets, the Committee decided to purchase up to $300 billion of longer-term Treasury securities over the next six months."
Bottom Line: We as a country are going to use one credit card to pay another.
Hat tip FOFOA!
Bottom Line: We as a country are going to use one credit card to pay another.
Hat tip FOFOA!
Meredith Whitney: Credit Crunch & Financials
Weighing in on consumer credit and why mark-to-market will not really help banks, with Meredith Whitney, Meredith Whitney Advisory Group CEO.
Note: Meredith was one of the first analysts (over a year ago) to publicly state that the US banks/financial system were heading for a major crisis.
This link contains an interview w/her back in May 2008: Consumer Credit Crisis
Note: Meredith was one of the first analysts (over a year ago) to publicly state that the US banks/financial system were heading for a major crisis.
This link contains an interview w/her back in May 2008: Consumer Credit Crisis
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