August 7, 2014

Bits Bucket for August 7, 2014

Post off-topic ideas, links, and Craigslist finds here.

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Comment by "Auntie Fed, why won't you love me?"
2014-08-07 01:44:59

Good morning, crater.

Comment by goon squad
2014-08-07 07:19:29

Excerpt from Business Insider article:

“Consumer spending still hasn’t grown to pre-crisis levels, and it isn’t all that close.

From pre-financial crisis levels, real consumer discretionary fell 8%, and even still it is languishing more than 3% below pre-crisis levels.”

A nation of broke @ss loosers

Comment by MacBeth
2014-08-07 07:34:17

No so sure about that.

I’m spending less because more of my income is being siphoned from me without my approval. I didn’t even get to vote on it.

And you?

Comment by rms
2014-08-07 07:41:08

“Consumer spending still hasn’t grown to pre-crisis levels…”

Where’s a 125% HELOC when you need one?

Comment by "Auntie Fed, why won't you love ME?"
2014-08-07 09:42:42

Actually, I have so much money left over after paying my rent, that I don’t know what to do with it.

Comment by Albuquerquedan
2014-08-07 09:58:27

Buy a big Mac and a small order of fries that should take care of it.

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Comment by Albuquerquedan
2014-08-07 10:00:08

Of course, that is with the employee’s discount.

Comment by Albuquerquedan
Comment by goon squad
2014-08-07 05:49:20

Dannyboy, let’s let the real journalists shape the narrative

Washington Post - With immigration reform, President Obama takes cue from Lincoln

“Not since Abraham Lincoln pondered his Emancipation Proclamation in 1862 has a president considered ordering a more sweeping adjustment to membership in the American community than the mass relief for illegal immigrants that President Obama is said to be contemplating.

The ideological concept behind Obama’s grand slicing of the Gordian knot of immigration, if he attempts it, would be akin to that which drove Lincoln’s action: the president as liberator.”

Comment by Albuquerquedan
2014-08-07 06:55:49

the president as liberator.”

He will liberate all taxpayers from their money.

Comment by MacBeth
2014-08-07 07:39:50

Sounds like Obama is being praised for being an imperialist.

You know, I seem to remember the United States being touted as being the great liberator on several occasions.

On many of those occasions, it was frowned upon. Now, the MSM is trying to praise Obama.

I guess this is because Obama favors domestic imperialism.

Comment by palmetto
2014-08-07 08:45:36

Oh, Jeebus, here it comes. You just know this is like catnip to Obama. I’d bet big money that an image has formed in his mind of himself standing on a high balcony, making broad beneficient gestures and proselytizing the adoring masses.

Lordy be, comparison to Lincoln. Yep, it’s over, folks.

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Comment by MacBeth
2014-08-07 09:19:14

More like Evita Peron.

The adoring, Impovershed, masses.

Comment by Albuquerquedan
Comment by RioAmericanInBrasil
2014-08-07 10:39:31

an image has formed in his mind of himself standing on a high balcony, making broad beneficient gestures

Word. Obama sees himself as some kind of imperial Ronald Reagan - the benevolent granter of amnesty to the brown masses.

A Reagan Legacy: Amnesty For Illegal Immigrants

As the nation’s attention turns back to the fractured debate over immigration, it might be helpful to remember that in 1986, Ronald Reagan signed a sweeping immigration reform bill into law.

….the bill also made any immigrant who’d entered the country before 1982 eligible for amnesty — a word not usually associated with the father of modern conservatism.

…This time, however, Republicans know better than to tread near the politically toxic A-word.

…Nowadays, conservative commentators like Glenn Beck and Rush Limbaugh often invoke the former president as a champion of the conservative agenda. Sean Hannity of Fox News even has a regular segment called “What Would Reagan Do?”

Simpson, however, sees a different person in the president he called a “dear friend.”

Reagan “knew that it was not right for people to be abused,” Simpson says. “Anybody who’s here illegally is going to be abused in some way, either financially [or] physically. They have no rights.”

Peter Robinson, a former Reagan speechwriter, agrees. “It was in Ronald Reagan’s bones — it was part of his understanding of America — that the country was fundamentally open to those who wanted to join us here.”

Reagan said as much himself in a televised debate with Democratic presidential nominee Walter Mondale in 1984.

“I believe in the idea of amnesty for those who have put down roots and lived here, even though sometime back they may have entered illegally,” he said.

Comment by Albuquerquedan
2014-08-07 10:59:02

NPR doing a fair story on Reagan, like that would happen. He was naïve to believe that Presidents would actually do their constitutional duty and actually enforce laws. Thus, his compromise was a mistake. However, he gave presidents the law to actually close our borders, now we just need to find one to enforce the law.

Comment by RioAmericanInBrasil
2014-08-07 11:16:00

NPR doing a fair story on Reagan, like that would happen.

Besides again being a proven liar by slight-of hand in the 8/5/15 bits bucket PropagandaDan also engages in fallacies - an argument that uses poor reasoning. Strawman etc.
Here Adan is using the genetic fallacy - an illogical argument for or against an idea based on the origin of the idea.

PropagandaDan does not want to admit that Reagan granted sweeping amnesty so he disparages the source of the facts -NPR- to try to take our attention that Reagan granted sweeping an far-reaching amnesty to illegal aliens in the 80s.

Comment by RioAmericanInBrasil
2014-08-07 12:02:24


8/5/15 = 8/5/14 :)

Comment by Whac-A-Bubble™
2014-08-07 17:40:15

I thought he was a progressive, and now he is an imperialist.

Me confused!

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Comment by MightyMike
2014-08-07 17:44:31

It worse than that. He’s a domestic imperialist, whatever the heck that means.

Comment by Whac-A-Bubble™
2014-08-07 17:53:53

It means propagandists who post here have no shortage of nonsensical ad hominem attacks in their verbal arsenals.

Comment by azdude
2014-08-07 05:43:39

buy a house and get in on the next bailout and 5 years rent free living.

Comment by Selfish Hoarder
2014-08-07 07:19:40

That’s on the assumption if E Warren or any of Karl Rove’s boys is elected Pres in 2016. Count out Hillarious though. She ain’t got a chance. No one knows the progressive E Warren is the same old dog $hit that was in the oval office since 2001.

Comment by scdave
2014-08-07 07:28:16

Karl Rove’s boys is elected Pres in 2016 ??

Fat Chance….That guy is forever connected to Bush & Cheney….He is toxic….

Comment by MacBeth
2014-08-07 07:49:48

I think a lot of people of this board DO get it.

What I’ve only recently come to realize is that they’re in favor of it.

Bill, there are several individuals here who consider NeoCons=Progressives to be a win-win. Identity politics means a great deal to them; it’s inherent in their souls. It’s who they are.

Comment by Selfish Hoarder
2014-08-07 08:29:30

Yes I know who on this board are apologists for the establishment. Like some establishment person that people don’t know much about will be any different than OBushma. And then the same type of people are shocked, shocked! that things like the NSA whistleblowing shows their beloved party’s congress critters and president let them down.

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Comment by Albuquerquedan
Comment by RioAmericanInBrasil
2014-08-07 10:40:58

Identity politics means a great deal to them; it’s inherent in their souls. It’s who they are.

The Tea Party. “I want my country back”.

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Comment by "Auntie Fed, why won't you love ME?"
2014-08-07 10:06:07

But Bill, you are an anarchist who rules out voting in the first place. Why would any of this be a concern to you?

BTW, I think E. Warren had a problem with the rule-breaking by the banks, not the actual foreclosures. Rumor has it that she flipped a few herself.

Comment by goon squad
2014-08-07 05:54:57

Article written by the National Association of Realtors pimps debt slavery to kidz

“Millennials, what are you waiting for? You should be buying a home right now. That’s the conclusion of a pair of recent studies that looked at homeownership.”

Comment by azdude
2014-08-07 06:21:38

millenials are the next meal ticket for the financial cartel.

Comment by goon squad
2014-08-07 06:29:58

and bloomberg piles on with more realtor propaganda

‘when shopping for a big purchase, the line that ‘it never hurts to wait’ often makes sense. but that’s only because by looking around more, you might find a better deal. which is why, with interest rates expected to rise over the next few years and home-buying demand still healthy, following that advice could be costly in today’s real estate market.’

home buying demand still healthy? what a joke

Comment by oxide
2014-08-07 06:57:49

Bloomibergi cites the same Zillow “study” as the Post did. All Zillow did was assume a 1% increase in interest rates and plug that number into their mortgage calculator. Big whoop, I’ve been doing that for HBB posts for years.

AZdude you’re right. The Harvard study completely skipped over Gen X and gone straight to Millenials. (There is no more Gen Y. They are now included as older Millenials.) The irony here is that it’s the greedy, profit-hungry financial cartel which helped to skyrocket college tuition while at the same time automating, outsourcing, and H1-B-ing Millenials’ jobs out of existance… while at the same time putting Boomers into such debt that they can’t retire and free up jobs… while at the same time telling Millenials to exercise financial prudence (six months expenses and all that).

And now they wonder and whine that Millenials are living at home instead of taking out more debt. Look in the mirror, Mr. Banker.

Comment by MacBeth
2014-08-07 07:56:05

It’s interesting that anyone anywhere still considers Harvard as anything akin to a bastion of impartiality. Geez.

Bankers? As our nation grows poorer, their ability to make quick profits will diminish. Bankers will live, just not as well.

And so it goes.

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Comment by oxide
2014-08-07 08:31:23

I can’t agree, MacBeth. You’re assuming that bankers make profit off of wages earned by labor, and when there are fewer jobs or when wages pay less, there is less total revenue for bankers.

But bankers do not make money from wages earned by labor. Bankers — and most of the wealthy class — make profit off of bets, trades, and perceptions of value and manipulations of money which is printed. And that’s why we have such a spiraling system. Money based on labor is limited to that amount of work that people can do. Money based on print is unlimited. We just pretend that it’s real because it could be based on, say, 50 or 100 years of labor instead of 30 years of labor.

Bankers will profit until money is reconnected and relimited to labor.

Comment by MacBeth
2014-08-07 09:23:05

If you want to win, it isn’t wise to play amongst those who don’t have any.

There are only so many Titanic chairs to go around, oxide. Fewer chairs means fewer winners. Fewer bankers (no matter how you want to define “banker”), means fewer winners.

Comment by oxide
2014-08-07 10:41:00

Wish I could agree, but I don’t see any sign that the printing is stopping. It’s like there’s a hole in the Titanic but the water isn’t coming in.

Funny, the Zillow article assumes 20% down. In DC? Who is ponying up $60K in cash? That’s what brought me to HBB in the first place in 2004-2005. Pretty young things buying $300K condoze straight outta college.

Comment by Blue Skye
2014-08-07 18:23:19

“Bankers will profit until money is reconnected and relimited to labor.”

Which, I hope you understand, will happen when debt donkeys have fainted. You brought on/sustained the credit bubble in a gamble to get rich spending money you didn’t have on a house. Just sayin.

If you have to mortgage yourself for 20 or 30 years to buy sticks and bricks, it isn’t even remotely connected to the labor you have done. It’s based on wispy dreams and promises.

Comment by Guillotine Renovator
2014-08-07 10:35:29

iPhone? Check
Snapchat? Check
$100k+ student loan debt? Check
Starbucks barista? Check
$500k starter home? Not so much…

Comment by Whac-A-Bubble™
2014-08-07 06:38:19

Now that last week’s stock market swoon is a receding memory, is it safe to say the market can go nowhere but up from here?

Comment by Whac-A-Bubble™
Comment by azdude
2014-08-07 07:01:24


Comment by Whac-A-Bubble™
2014-08-07 17:49:09

Seems like the bull is giving up on me. DJIA is down another 75 points today for no reason, as the Fed is not planning to raise interest rates for years to come.

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Comment by MacBeth
2014-08-07 07:57:10

What swoon? 3-4 percent is hardly a swoon.

Comment by "Auntie Fed, why won't you love ME?"
2014-08-07 10:35:58


Comment by palmetto
2014-08-07 06:40:34

According to CNBC, bacon prices are going down. Thanks, Vlad!

Comment by oxide
2014-08-07 07:33:29

A little more info on the food sanction, and a possible airspace sanction:

7 August 2014 Last updated at 09:56 ET

Russia hits West with food import ban in sanctions row

Russia is imposing a “full embargo” on food imports from the EU, US and some other Western countries, in response to sanctions over Ukraine. Prime Minister Dmitry Medvedev said it would include fruit, vegetables, meat, fish, milk and dairy imports. Australia, Canada and Norway are also affected…. Mr Medvedev ordered the agriculture ministry and producer organisations to find ways to boost Russian farm output in order to prevent price rises for consumers… they are searching for alternative suppliers in South America, Turkey and China

…Russia is also banning Ukrainian airlines from transit across its territory, he said in televised comments to the government. Furthermore, the Russian government is considering banning transit flights for EU and US airlines in retaliation for sanctions over Ukraine, he said. Barring airlines from Siberian airspace would significantly increase costs and flying time for many jets bound for Asian destinations. ”

“Finding ways to boost farm output?” Sure, if it were winter, Russian locals could plan to plant more etc, but August is a little late for that. In fact most of the fresh harvest is already in, or should be in. If South America is busy supplying Americans, they won’t have much extra. Chinese food to the rescue? haha. [I note that there is NO ban on Western pet food.. slap in the face to China?] Better stock up on beans and borcht. They’re in for a tough winter.

On the other hand, if they ban the airspace, that’s gonna leave a mark on the West.

Comment by palmetto
2014-08-07 08:40:23

I loves me a good rasher of bacon, so I am most grateful to Vlad.

The airspace thing is interesting, though. China would certainly become less attractive as a business destination.

Ah, the blessings of globalization!

BTW, oxide, pop quiz for you: You are at Home Depot and get accosted by a vendor salesperson for roofing, flooring, cabinetry, water conditioning, etc.

What are the three magic words you say to them?

Comment by Albuquerquedan
2014-08-07 08:53:29

I loves me a good rasher of bacon, so I am most grateful to Vlad.
I try to limit my consumption because I know the health risks. However, bacon is meat from the gods so I just try to eat it with salmon to offset the impact. Thanks Vlad.

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Comment by "Auntie Fed, why won't you love ME?"
2014-08-07 10:38:52

This is a quotation mark: “. Please surround quotes with them.

Comment by oxide
2014-08-07 11:10:04

Autie, you don’t understand. He has a smart phone. A


Such gentry deserve special priviledges including grammatical leeway, typographical errors, business class cocktails, and rarified air.

But I gotta wonder, with so many posts, including multiple replies to a single post, would it not be more efficient to invest in a keyboard?

Comment by Albuquerquedan
2014-08-07 08:55:24

What are the three magic words you say to them?

I have Ebola? Might work with Realtors too, but they are more desperate.

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Comment by oxide
2014-08-07 08:56:18

Yours or mine? :razz:

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Comment by Albuquerquedan
Comment by Salinasron
2014-08-07 10:18:26

Just two words is all you need! “I rent”.

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Comment by Albuquerquedan
2014-08-07 10:25:45

Women might not want to say that to males.

Comment by Whac-A-Bubble™
2014-08-07 17:56:48

OK, now I get it. Russia stops importing US bacon, Americans get to eat more, and US farmers continue to get made whole by ag subsidies.

Sounds like a win-win all around (except for Russians who eat US bacon).

Comment by Blue Skye
2014-08-07 18:29:46

It’s kind of like “We can starve ourselves to show you what real pain is. We’re used to it. Meanwhile think about freezing in the dark.”

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Comment by Rental Watch
2014-08-07 10:55:09

Talk about a fast way to incite revolt…take away bacon.

Comment by Whac-A-Bubble™
2014-08-07 17:51:15

What did Vlad have to do with it?

Comment by Whac-A-Bubble™
2014-08-07 06:42:38

Do real estate investments appreciate faster when occupied or empty?

Comment by Whac-A-Bubble™
2014-08-07 06:45:00

The IMF Is Concerned About Chinese Real Estate Sitting Empty

Michael Thrasher, Design & Trend Editor
Aug, 04, 2014, 11:40 AM
buildings under construction near the People’s Bank of China
(Photo : Getty Images) CHONGQING, CHINA - SEPTEMBER 29: (CHINA OUT) A general view of buildings under construction near the People’s Bank of China office building on September 29, 2007 in Chongqing, China. The People’s Bank of China and the China Banking Regulatory Commission have released new rules changing second residential home deposits from 40 percent from 30 percent in a move to curb soaring property prices. (Photo by China Photos/Getty Images)

The International Monetary Fund is concerned about empty real estate developments in China’s second and third tier cities.

Betting on the continued housing boom, developers and lenders have been devoting enormous amounts of money into real estate. The problem is, people aren’t moving into it.

The oversupply problem in second and third tier cities is so bad, the IMF said it could likely derail China’s economy by a whole percentage point, according to Forbes.

In the year 2000, real estate accounted for around 5% of China’s GDP. By 2012 it rose three times to 15 percent, according to the IMF’s calculations. It certainly did not decline in 2013 and 2014, despite Beijing working overtime in forcing a market correction. The IMF did not have data for the last two years.

The real estate market appears to be undergoing a correction. While a slowing of investment and construction by as much as 10% would definitely reduce growth from 7.5 percent to 6.5 percent, an orderly adjustment is still factored into the IMF’s baseline scenario.

Unlike the real estate bubble in 2008 that derailed the U.S. economy, there is no subprime or foreclosure crisis looming in China.

The problem is urbanization has not happened as fast as expected and as developments sit empty. As a result, owners could struggle to pay back lenders.

Chinese real estate has many upstream and downstream effects on industries as well, including cement and steel makers, to heavy equipment leasing companies.

“A mantra for China developers and their lenders is in order,” wrote Kenneth Rapoza, a contributor to Forbes. “It may not ring is nicely, but surely will ring true: if you build it, they might not come.”

Comment by Albuquerquedan
2014-08-07 06:59:20

China will grow by at least 7% this year and next. China with its low government debt 1/5 of our debt can and will assure it. The IMF wants China to reduce its growth to 6.5 to 7% but China will not allow that low of growth. How Obama wishes he had to put up with “only” 6.5% growth.

Comment by Albuquerquedan
2014-08-07 07:04:46

Not the type of profits you have if you have a troubled economy, virtually no spill over from real estate:

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Comment by Albuquerquedan
2014-08-07 07:08:29

China’s high tech future, is California ready for the challenge?

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Comment by Albuquerquedan
2014-08-07 07:37:44
Comment by Blue Skye
2014-08-07 18:32:41

It’s because you don’t understand where the debt is. Biggest pile of steaming debt and fraud on the planet. Fang nu nation.

Comment by scdave
2014-08-07 07:36:47

Read the last paragraph again Dude…Maybe your Nobel Prize Brain can grasp what he is saying this time…

“What we should probably worry about is not whether it maintains the old rate of growth, but rather whether Chinese growth drops below the country’s sustainable rate of 7 to 7.5%.”,d.cGE

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Comment by Albuquerquedan
2014-08-07 07:55:19

You just do not seem to understand that does not mean China collapses the entire article talks about the strength of the Chinese economy. China falling below 7% would be very bad for countries such as Brazil not for China. It use to be said when the U.S. sneezes the rest of the world gets a cold. Now, it is China that determines the world’s growth.

Comment by Albuquerquedan
2014-08-07 08:00:17

You miss read that one sentence and ignore the key part which is dead on with my posts:

Newspaper reports on debt in China have been misleading. Public sector leverage is well below most other countries. China also happens to be one of the countries where the assets on the state balance sheet are enormous, including $3.5 trillion in reserves, 90% of the shares in state-owned enterprises, a lot of the country’s land, plus tax capacity. There are some concerns with corporate debt and with China’s version of the shadow banking system, which is a set of complicated and unregulated end runs around the state-owned banking sector. But they are busy getting their arms around that.

Comment by Albuquerquedan
2014-08-07 08:03:30

misread. BTW, since the article was written the Chinese economy has accelerated with the government achieving the correct amount of stimulus. The government deficit will be about 3% this year while the growth rate will be above 7%, meaning China’s already low debt to GDP ratio (1/5 of ours) will drop even further.

Comment by RioAmericanInBrasil
2014-08-07 11:19:08

if they report that private sources outside of China will confirm that number is very close to the actual growth, like they always have in the past.

It’s much more credible when private sources outside of China report the numbers given to them by the Chinese government.

Comment by Albuquerquedan
2014-08-07 14:39:53

It’s much more credible when private sources outside of China report the numbers given to them by the Chinese government

You think that is what the Stanford professor was doing? What an idiot.

Comment by RioAmericanInBrasil
2014-08-07 15:36:21

You think that is what the Stanford professor was doing?

AlbuquerquedanCherrypicking, You know darn well a lot of China’s numbers “private” and public are doctored and fudged. Those numbers affect private firms’ projections. Are you 12?

China to crack down on fake data ‘corruption’: statistics chief

The accuracy of economic statistics in general in China has come under the spotlight in recent years as some growth-obsessed local governments published false economic data.

“In the area of statistics, falsification can be considered as the biggest form of corruption,” Ma Jiantang, head of the National Bureau of Statistics told a meeting, in a reference to the Chinese government’s broader crackdown on corruption.

The comments were published on the same day as official figures showed a surge in exports in January far above expectations, prompting speculation about a return of the practice of disguising currency speculation as trade that had distorted trade figures last year.

The statistics bureau has previously vowed zero tolerance for fake data, and has admonished some local governments for falsifying economic data.

The most recent case was in December, when officials in Yanting county in the southwestern province of Sichuan were found to have had overstated almost fivefold the value of industrial output from local companies.

Part of the problem is a traditional system whereby local government officials seek to burnish their credentials and promotion prospects by exceeding government targets for economic growth

Comment by Blue Skye
2014-08-07 18:35:39

“including $3.5 trillion in reserves”

It’s because you don’t understand the liabilities that are associated with these reserves. They are not “money in the bank”.

Comment by oxide
2014-08-07 08:00:26

I predict that next year China Daily will report that China has grown by at least 7.5%.

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Comment by Albuquerquedan
2014-08-07 08:04:47

And I predict that if they report that private sources outside of China will confirm that number is very close to the actual growth, like they always have in the past.

Comment by Albuquerquedan
2014-08-07 08:06:11

BTW, do you think the Stanford professor would not have been aware if Chinese numbers differed largely from the official numbers.

Comment by Housing Analyst
2014-08-07 08:06:58

Hey Donk

Comment by Albuquerquedan
2014-08-07 08:16:59

Slowdown’s impact on Brazil:

Updated: 2014-08-07 10:39
Brazil’s total iron ore exports in July rose 5% to 31.1 million mt, from 29.6 million mt in the year-ago period, according to the latest Brazil Ministry of Foreign Trade data.

However, total revenue generated from iron ore exports dipped 18% year over year to $2.1 billion FOB from $2.6 billion FOB, with the average per-ton price also dropping to $70.10/mt FOB from $89.80/mt FOB.

Comparing July’s data to June’s results, shipments last month rose 5.5% from 29.5 million mt in June, while overall export sales fell at the same rate, from $2.3 billion FOB in exports in June.

July’s average iron ore price was down $8.10 from June’s $78.20/mt FOB.

Breaking down exports by companies — using consolidated June data from iron and base metals extraction industry group Sinferbase — Vale, Samarco and MMX combined shipped 28.7 million mt of iron ore products during the month, 8% above the 26.6 million mt shipped in June 2013.

Vale’s domestic shipments in June grew 5% year over year, to 1.8 million mt, while Samarco, the 50:50 joint venture between Vale and BHP Billiton, didn’t sell to the domestic market during the month.

Vale and its subsidiaries increased exports in June by 6%, to 23.9 million mt, while Samarco’s shipments jumped 50%, to 1.6 million mt.

MMX reduced its domestic shipments in June by more than 40% to 191,000 mt, from 321,000 mt in the year-ago period. A sharp reduction also occurred in the miner’s exports, which plunged 56% in June from 381,000 mt a year ago.

Comment by Albuquerquedan
2014-08-07 08:22:56

Excerpt from link, this board is looking at the wrong country for housing bubble burst, it should be looking at the socialistic “paradise” of Brazil:

Brazil’s longer-term swap rates declined as economists cut growth forecasts for this year to the lowest level on record.

Swap rates on the contract maturing in January 2017, a gauge of expectations for interest-rate moves, declined four basis points, or 0.04 percentage point, to 11.59 percent. The real weakened less than 0.1 percent to 2.2584 per dollar.

Gross domestic product will expand 0.86 percent this year, down from the previous week’s median forecast of 0.9 percent, according to a central bank survey of about 100 analysts published today. That’s the lowest level since the central bank started compiling the data last year and the 10th straight week of cuts in growth projections for Latin America’s biggest economy.

“The survey shows one more time a decline in expectations for GDP growth this year,” Octavio de Barros, the chief economist at Banco Bradesco SA in Sao Paulo, wrote in an e-mailed report to clients. “The trading in interest rate futures is reacting to those changes.”

Brazil’s industrial production dropped 1.4 percent in June after contracting a revised 0.8 percent in May, the national statistics agency said on Aug. 1. Of the 24 industries surveyed by the statistics institute, output in 18 fell, including a 12.1 percent decline in cars and auto parts.

Economists in the central bank survey expect inflation of 6.39 percent at the end of this year and 6.24 percent in December, 2015. Those estimates compare to previous forecasts of 6.41 percent and 6.21 percent, respectively. Brazil’s central bank targets annual inflation at 4.5 percent, plus or minus two percentage points.

Comment by oxide
2014-08-07 08:47:19

“Hey Donk”

Hey Pimp. How does it feel to be knocked off the top of Annoyance Mountain?

Comment by Albuquerquedan
2014-08-07 08:58:18

Just to the left posters and I am proud to be on top of that mountain. I can see the end of the Obama administration from my vista.

Comment by Albuquerquedan
2014-08-07 10:07:03

About Brazil and don’t wait for Lola to post since it is not in the D.C. papers:

Comment by Albuquerquedan
2014-08-07 10:10:49

With odds at 3:1, Brazil is favorites to win the World Championship in football this summer. Investors, on the other hand, will play Brazil cautiously this year, the Financial Times predicts. Why? The brief answer is that Brazil finds itself in a situation that is more than difficult. With economic growth close to zero, nagging problems with inflation and a prolonged bubble in housing prices, the big question is: can Brazil tame its real estate bubble, without causing an economy already on the brink of recession to grind to a halt?

If the Brazilian slowdown in growth was mainly a ‘natural’, and inevitable, response to low growth in the world economy, and the slowdown in the Chinese growth engine, there might be less reason for concern. But Brazil is edging closer to zero growth for domestic reasons too. Brazil’s growth model is “overly dependent on public spending and flagging consumption and credit” and suffers from a serious investment deficit; its investment rate is among the lowest in the region (at 18.4 %).

With such fundamental difficulties, why worry about taming a housing bubble? Is that not the lesser problem for Brazil, compared to the challenge of rebalancing its growth model and avoiding outright recession? At first glance perhaps, but in reality it makes little sense to address these problems separately. Indeed, failure to tame the real estate bubble may turn out to be what eventually pushes the Brazilian economy off the cliff. Just a few years ago, we witnessed how much a housing market turning sour can wreak havoc of an economy. Indeed, the parallels between Brazil today and the US in 2005 are deeply troubling.

Before we get to that, it may be worth noting that macroeconomic experience tells us that if there is anything we know about systemic risks it is that no risk exists greater than that of a housing bubble. Franklin Allen – Professor of Economics at the University of Pennsylvania, speaking at a Bundesbank symposium a few weeks ago – gave particular strong emphasis to this point. A number of studies, said Professor Allen, have “provided evidence that the most important source of systemic risk is the collapse of real estate prices”. If a real estate bubble bursts, other asset prices will likely fall too and there will be significant risk of a banking crisis with repercussions far beyond the financial sector, he stressed.

Strikingly, Franklin Allen singled out Brazil as a particularly troubling case, with real estate prices having tripled in Rio de Janeiro and Sao Paolo since 2008. Indeed, data from the Bank of International Settlements shows that over the past five years “no market was hotter than Brazilian housing”.

In the past year, Brazil’s central bank has raised its benchmark interest rate no less than seven times, so that it now stands at 10.5 %, up from 7 % a year ago. And yet, inflation remains high – at almost 6 %, considerably above the 4.5 % target – and real estate prices show little signs of abating. The Brazilian central bank may consider further raising interest rates, to contain inflation in consumer and real estate prices, but the adverse side-effects could be considerable: a further slowdown of investment, along with an increase in already high debt-service-to-income ratios.

Brazil’s predicament calls for macroprudential policy, some would argue. A boom in real estate prices can be dampened, or contained, without raising interest rates by deploying macroprudential tools such as loan-to-value (LTV) and debt-service-to-income (DTI) ratios. There are, however, good reasons to question that such policies will do the job for Brazil.

First, one should note that Brazil has already received praise for its macroprudential policies, several years ago, by the IMF and others. If Brazil’s praiseworthy macroprudential policies have hitherto failed to contain the boom in Brazil’s real estate markets, why should we trust them to succeed in that respect, going forward? Although it may be too harsh to say that the policies have been ineffective, they surely have, so far, been inadequately effective, it would seem.

Second, to the extent that macroprudential policy can be effective in mitigating systemic risks it is likely to be so mainly as preventive medicine, dampening and containing a boom, not so much as damage control, once the fire is on. Though it remains disputed whether the large real estate price increases in Brazil in the past six years do in fact constitute a housing bubble, or simply reflects real economic growth and the fact that housing prices were largely stagnant for decades prior, it seems to me that pessimists have a stronger case than optimists.

Talking about the housing bubble during a recent trip to Brazil, Robert Schiller, the Nobel-prize winning Yale University Professor, noted that it felt like being in the US in 2005: “Interest groups develop that want to cheerlead the housing boom… it sounds like something I’ve seen before”. This is not the only troubling parallel that strikes observers. For instance, given that average debt servicing was 15 % of income just before the crisis in the US, it is worrying that in Brazil today it is even higher. Debt servicing in Brazil is “eating up an ever-increasing share of income”, recently reaching 20 per cent, according to David Rees, emerging markets economist at Capital Economics in London.

A few factors may play to the advantage of Brazil, as noted by the IMF. Its mortgage-loan-to-GDP ratio remains low (6.9%) by international standards, the ratio of its real estate loans that are non-performing is also “fairly low” around 2 %, and securitization in Brazil is “still incipient and not complex”. Add to this that the Brazilian banking sector is significantly better capitalized than is the case in most other countries around the world, and you have a case for some resilience to adverse events in the Brazilian housing market.

But will it be enough to avoid, first, a collapse in real estate prices and, second, a wider financial crisis?

Jakob Vestergaard, GEG Watch, 17 March 2014

Comment by "Auntie Fed, why won't you love ME?"
2014-08-07 10:48:09


From my (Windows) Vista, I can see the end of your welcome on this board.

Trolls drool.

Comment by RioAmericanInBrasil
2014-08-07 10:56:39

can Brazil tame its real estate bubble, without causing an economy already on the brink of recession to grind to a halt?

It’s different in Brazil. I don’t know if a collapsing housing market in Brazil would affect Brazil like it did America. The mortgage debt level is very low and no HELOCS.

With the above reality being different from USA I see a Brazilian recession affecting house prices more than crashing house prices affecting the economy. Thoughts anyone?

Comment by RioAmericanInBrasil
2014-08-07 11:44:11

I find this interesting. When highly educated Brazil expert Gringos write well written articles about Brazil, there’s most often this sense of mystery about the push-pull and complexity on what’s going to happen and how things work down here. Like the same actions and policies don’t always play out the same way in Brazil as they do in other countries.

And it’s true. Brazil is not a greater country than USA by far, but it is a much more complicated country for us gringos. Why did Brazil avoid the global meltdown in 2008? Why did Brazil’s house prices explode in the absence of major credit? Why did a tropical mixture of supply-side/demand-side and populist programs bring 40 million Brazilians out of poverty the past 15 years? The answers are very complicated because Brazil is very complicated.

I remember know-it-all FPSS swearing that Brazil would be in Recession by 2012 and that 2013 would be a depression so great that there would be gnashing of teeth and housing would CRATER. Well golly, I must have missed all of that.

I think Brazil should veer to the right in the next election. The left did a good job but that was the time and place for them and for now, they’re out of ideas imo. One of the major candidates from the right was a childhood friend of my wife. I actually met him in the 90’s when he was “simply” a Congressman and sang karaoke at a rich-boy party we went to. “Johnny B. Goode”. I can’t vote but I think he’d be good for Brazil at this point.

The main point about Brazil it that you don’t always get what you expect because all of the underlying pieces of the puzzle are not exactly what you would expect because it is not Europe nor America but a mixture of both infused with the very complex nature of Brazil.

Comment by Albuquerquedan
2014-08-07 12:09:36

Same old bs. The demand side socialist country is failing and the supply side country is growing 7% or more each year. It is not that complicated.

Comment by "Auntie Fed, why won't you love ME?"
2014-08-07 12:12:28

Didn’t Brazil just recently have a run-of-the-mill crisis, attended by riots and fire and all that other globalist flimflam?

Comment by RioAmericanInBrasil
2014-08-07 12:19:34

It is not that complicated

It is very complicated but recognizing complication in not your forte. That’s why so many see through your simplistic attempts to alter history and change facts.

And everything to you is a snap-shot in time with no backgrounds, culmination of great events and pattern’s effects.

A great example is how you don’t acknowledge the disastrous culmination of past policies and events that lead America to where it is today.

For you it’s just Obama, Obama, Obama but you’re wrong and overly simplistic. What has led America to where it is today?
Hint: It’s complicated.

Comment by RioAmericanInBrasil
2014-08-07 12:27:04

Didn’t Brazil just recently have a run-of-the-mill crisis, attended by riots and fire and all that other globalist flimflam?

Last summer. It wasn’t globalist -more populist- better schools hospitals-less corruption- lower bus fairs etc.

The elite and media portrayed them as trouble makers and vandals and shut them down.

I was proud of them.

Comment by Albuquerquedan
2014-08-07 13:16:44

Whenever the left gets hit with facts they cannot explain they way they always say it is complicated. It goes as far back as when they had to explain why Stalin had signed a pact with Hitler. The Brazilian economy has been built on massive consumer debt and commodity exports. It has failed to invest in plant and equipment and is paying the price. Supply side economics favors plant and equipment and demand side favors consumer spending. China may have invested too much but that is a far easier problem to address. Thus, China’s slowdown is to 7% and Brazil will struggle to have 1% growth.

Comment by RioAmericanInBrasil
2014-08-07 13:48:53

Whenever the left gets hit with facts they cannot explain they way they always say it is complicated.

Not true. I’ve been involved with Brazil since 1986. I live here. It’s complicated. What is true is that whenever you PropagandaDan get hit with facts, you lie, conjures illusions.

Here’s an example on HBB bits 8/5/14:

Comment by Albuquerquedan
2014-08-05 10:56:25

Look at the curve on this measurement of the money supply and without looking at the dates guess when Obama took over. Interesting article:

Comment by RioAmericanInBrasil
comment-2363311 2014-08-05 12:16:57

Look at the curve on this measurement of the money supply and without looking at the dates guess when Obama took over

Fun game! But we don’t have to guess when the curve bent looking at Adans fuzzy graph. We can tell exactly when the money supply started exploding by holding our cursor over this St. Louis Fed interactive graph at the exact point of the parabolic rise. The money supply started exploding July 2008 - seven months before Obama. Notice the monetary base started deviating upward in about 1981 and we don’t even have to guess that was Reagan. No one can stop this TrickleDown train now. Try the graph. Real math and facts are fun!

Comment by Albuquerquedan
comment-2363317 2014-08-05 12:29:40

The explosion continued well past July 2008 and continues today. Obama is printing away like his “father” Mugabe and it will have the same result.

Comment by RioAmericanInBrasil
comment-2363334 2014-08-05 13:12:24

The explosion (of money) continued well past July 2008 and continues today.

No Adan. Too little too late.

Ladies and gentleman of the HBB, I again offer proof that Albuquerquedan aka PropagandaDan, Adan etc… in fact a liar, a twister of facts, and a conjurer of illusion.

1. Today, as he’s done before, Adan wants to lead you to believe that the money explosion began under Obama. He’s said this many times on this blog.

2. And as Adan has done before, he offers a “fuzzy” chart where it’s very hard to pinpoint the starting point of the explosion of money supply and one can easily looking at the chart think it started under Obama.

3. Then Albuquerquedan says at 2014-08-05 10:56:25 :
“Look at the curve on this measurement of the money supply and without looking at the dates guess when Obama took over………(without looking at the dates guess when Obama took over).”

4. This ladies and gentlemen of the HBB is indisputable proof that Adan is a conjurer of illusion, distorter of facts and is in fact a LIAR. Because I have shown you that the money supply actually started exploding a half a year before Obama took office under the Republican administration of George Bush/Hank Paulson and Ben Bernanke.

5. Albuquerquedan KNEW this when he wanted to lead you to believe the money explosion began under Obama. He knew because Albuquerquedan and I have debated this issue before on the HBB where I showed him the same facts as I’ve shown you today. He knew the dates.

6. Albuquerquedan knew the facts. He knew but yet he still thought so low of our intelligence that he decided to conjure up an illusion that was in fact a lie.

7. On this day 8/5/2014, I have again proved (as have many) that the poster Albuquerquedan, aka PropagandaDan/Adan, is in fact a distributor of propaganda, a conjurer of illusion based on twisted facts, half-truths and slight of hand and in fact Albuquerquedan is a LIAR.

8/5/2014 I rest my case.

Comment by Albuquerquedan
2014-08-07 13:55:57

90% of the money supply growth under Obama, I rest my case. Anyone that looked at the graph could find Obama’s administration within a few months and that was my point. Try to make a mountain at of a molehill it will not make history any kinder for Obama. He is one of the worse presidents ever and may be the president that stuck a stake through the heart of democracy with his expansion of the national debt and the money supply.

Comment by RioAmericanInBrasil
2014-08-07 14:09:11

Anyone that looked at the graph could find Obama’s administration within a few months and that was my point.

Riiiiigght AlbuquerqueWeasel, That was not your point and anyone looking at your “fuzzy” graph would have a hard time pinpointing Obama’s start. Your point was to again lead everyone to believe (through cheap tricks) the money explosion began under Obama - your typical lie. If anyone doubts it, click Adans chart. Then click my chart.

Try to make a mountain at of a molehill

Nice tap dance. Your compulsive lying is not a molehill. Your compulsive lying is a mountain. A pretty ugly, bald face mountain, but a your lying is a mountain nonetheless PropagandaDan.

Comment by Albuquerquedan
2014-08-07 14:12:48

90% of the money supply growth under Obama

I mean 90% of the graph times in increasing the feds balance sheet has occurred under Obama and the vast majority of the increase. His Fed did not decrease the balance sheet after the recession had “ended” in June 2009, instead he turned us into a banana republic by monetizing the debt.

Comment by RioAmericanInBrasil
2014-08-07 14:24:56

I mean 90% of the graph times in increasing….

We know what you meant AlbuquerqueWeasel. You meant to lie, by conjuring illusion based on twisted facts, half-truths and slight of hand.

You know. Being an weasel. :)

Comment by Albuquerquedan
2014-08-07 15:33:32

You are the Saul Alinsky disciple trying desperately to make this about me and not the failed policies of Obama. Lie, attack, lie attack that is all you have.

Comment by RioAmericanInBrasil
2014-08-07 15:41:22

You are the Saul Alinsky disciple

PropagandaDan Internet propaganda manual

Chapter 11 Emergency measures when being outed as a liar

Section 5.

If totally unable to lie your way out of it, call the outing party, call the outer a Saul Alinsky, leftist, Commie, Chicago style operator, Insult Obama.

If that does not seem to work, revert to racial or homophobic slurs.

Comment by Albuquerquedan
2014-08-07 15:52:38

Why did Brazil avoid the global meltdown in 2008?
China’s demand for its natural resources.

Comment by pazuzu
2014-08-07 16:44:32

“Now, it is China that determines the world’s growth.”

Comment by Whac-A-Bubble™
2014-08-07 18:01:40

Whenever ADan gets slammed by the facts, he accuses his challenger of being a leftist, progressive, statist Obama minion in league with all others who ever slammed his posts with facts.

Comment by Whac-A-Bubble™
2014-08-07 18:03:08

Why did Brazil avoid the global meltdown in 2008?
China’s demand for its natural resources.

Once China wakes up to the folly of constructing empty, unneeded real estate, that demand is going to evaporate.

Comment by Whac-A-Bubble™
2014-08-07 17:52:15

Pimping away until the cows come home won’t erase China’s many cities full of unoccupied buildings.

Comment by goon squad
2014-08-07 06:45:03

I personally contributed to this when I worked for TARP bank in 2004-2006

Bloomberg - Default Risk Rises on 20% of Boom-Era Home-Equity Loans

“As much as 20 percent of home equity lines of credit worth $79 billion are at increased risk of default as their payments jump a decade after the loans were made during the U.S. housing boom, according to TransUnion Corp.

Borrowers face rate shocks as payments on the credit lines, known as HELOCs, switch from interest-only to include principal, causing monthly bills to surge more than 50 percent, according to a report today by the Chicago-based credit information company. The 20 percent of borrowers most in danger of default are property owners with low credit scores, high debt-to-income ratios and limited home equity”

Comment by Mr. Banker
2014-08-07 07:06:13

I personally contributed to this when I worked for TARP bank in 2004-2006.”

Thank you.

Comment by scdave
Comment by azdude
2014-08-07 07:05:17

Talk about overpriced shacks. The bay area is way overpriced.

Comment by scdave
2014-08-07 08:24:06

The bay area is way overpriced ??

Why just the “Bay Area” ?? Couldn’t you say that about hundreds of places ??

Comment by MacBeth
2014-08-07 08:41:51

The Bay Area itself could talk about the hundreds of places that are tech-rich. But does it do that? Why not?

The Bay Area (and California proper) is a target because it makes itself one. Mouth off too much and others will knock you down a peg.

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Comment by "Auntie Fed, why won't you love ME?"
2014-08-07 10:51:16


You have issues. You seem to hate just about everyone. You said a while back that your only memories of school were of being locked in a room. Did you go to school in a detention center?

Comment by Albuquerquedan
2014-08-07 11:40:33

MacBeth does not hate everyone or most everyone.

Comment by Whac-A-Bubble™
2014-08-07 18:04:53

MacBeth does not hate everyone or most everyone.

Are you MacBeth? If not, how do you know his inner emotions?

Comment by goon squad
2014-08-07 07:05:47

Nice article.

“Part of the problem is that the market is over-rewarding the inanities on smartphones.”

And sadly, no shortage of narcissistic millennials to participate in those inanities.

Comment by MacBeth
2014-08-07 08:02:29

I see plenty of Xers and Boomers who are equally narcissistic.

I bet there’s 50 million people out there who couldn’t go without their devices for a week without losing their grip. And that’s probably a conservative number.

Comment by scdave
2014-08-07 08:26:43

I bet there’s 50 million people out there who couldn’t go without their devices ??

I likely could not…But I am polar opposite of narcissistic…

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Comment by goon squad
2014-08-07 08:36:23

I’m speaking to the notion of building an “economy” based on those inanities. I have purchased a grand total one app for the princely sum of $3.00. And switched from Verizon to a low cost carrier the day my contract expired.

Why should this country build anything when you’ve got Candy Crush and selfie sticks?

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Comment by MacBeth
2014-08-07 08:47:01

I know. Pathetic, ain’t it?

BTW, how many imbeciles make the trek out to Rocky Mountain Natl Park only to screw around on their devices? Care to offer a guess? One out of 4? One out of 3?

Comment by oxide
2014-08-07 09:06:45

I had to google what a “selfie stick” was. Did I escape the narcissism?

(Then again, I used “google” as a verb, so I guess it’s a wash.)

Comment by Albuquerquedan
2014-08-07 09:16:11

If you use summer as a verb, you belong to the .01%.

Comment by goon squad
2014-08-07 09:20:40

macbeth, one of the nice things about rmnp is that it is a contiguous chunk of land with no cell phone towers inside the park. unless you are within a mile or so of estes park or grand lake, there is no phone reception inside of the park.

people can take selfies and record douchebag videos of themselves wearing a gopro, but they can’t upload them to facebook or youtube until they exit the park. a sad, first lesson of delaying receipt of external validation for them.

Comment by MacBeth
2014-08-07 09:27:52

Yeah, that’s a rather nice element of our national parks - very little connectivity.

I don’t understand people’s need for external validation. Everybody wants to be a star, apparently.

Seems a good many adults never left high school.

Comment by Albuquerquedan
2014-08-07 14:17:09

Exactly. And that is why we elected the “cool kid” instead of the competent kid as president.

Comment by rms
2014-08-07 20:32:50

“I had to google what a “selfie stick” was.”

+1 Same here, haha. Disturbing. :)

Comment by Tarara Boomdea
2014-08-07 10:23:36

My husband was irked yesterday to see his brother had posted something like “right now I’m stuck in traffic under a bridge.” His brother is at least 63. My reply was get off Facebook, problem solved; leave it to the self-absorbed.

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Comment by Albuquerquedan
2014-08-07 10:29:16

Actually, yesterday Facebook redeemed itself. I go on probably once a month and I found a friend request. It was from a classmate from college 35 years ago. She is a professor at U of Virginia. Kind of cool.

Comment by Tarara Boomdea
2014-08-07 10:46:43

I get the news from one from one friend who lives for that stuff (like the song “You Talk Too Much”). Everybody who I want to hear from knows where I am.

One of the reasons I’m leery of all social media because I owned a local business (pub) for a very long time, a long time ago. People know who you are but you don’t know them. That little bit of recognition made me very uncomfortable. I don’t know why anyone would want to be famous.

Comment by Selfish Hoarder
2014-08-07 07:32:44

I miss the good old days when being a techie was considered being a nerd. Now it means being a hated nerd. The real problem these days is not technology. It’s that the sheople allowed government to violate the constitution and become too much focused on defense and national security.

There are people in the NSA - or NSA contractors I read accounts of that were sympathetic to Edward Snowden but sold us all out because they have families to feed.

Now 680,000 people are said to be on a terrorist list. I wonder when I will get on a no fly list for being a voluntaryist?

Comment by oxide
2014-08-07 10:52:12

Sorry Bill, but I don’t think that using tax money to pay defense contractors is the first thing that comes to mind when someone says the word “techie.” When I hear the word, I for one am brought back to the late 90’s. Techies prided themselves in their Palm Pilots and their slidey cell phones, all-nighters and red-bull drinks and slightly effeminate ways, skinny pants and stock options, the X-files and the Matrix, and those boxy glasses…. oh those boxy glasses. Techies were going to save the world, and never did they miss an opportunity to inform the rest of us of that. Pride goeth before a fall, and did they ever fall.

I see the same with social media. At some point, they too will fall. There are only so many eyeballs and ads you can sell before the sponsers will demand that the eyeballs actually open their wallets.

Comment by Albuquerquedan
Comment by goon squad
2014-08-07 07:33:43

Speaking of real journalists

“A prominent CNN commentator, the top two political reporters for The Huffington Post, a Reuters reporter, the editor of The Nation magazine, a producer for Al Jazeera America television, a U.S. News & World Report columnist, and approximately two dozen Huffington Post contributors are among the more than 1,000 members of Gamechanger Salon.

Founded by leftwing activist Billy Wimsatt, the group is a secretive digital gathering of writers, opinion leaders, activists and political hands who share information, ideas and strategy via a closed Google group.”

Comment by Albuquerquedan
2014-08-07 07:40:46

I like this comment from the link:

Art Clough · Top Commenter · Farmington Hills, Michigan

I don’t believe thinking people are surprised by this. The left needs to do “group think” since they find thinking for themselves to be a function they can not perform

Comment by Blue Skye
2014-08-07 19:33:23

So, whose group think are you in?

Comment by reedalberger
2014-08-07 09:02:51

Do these dip sh.ts ever take a break?


Comment by "Auntie Fed, why won't you love ME?"
2014-08-07 11:00:39

Do they really think that a Google group can possibly ever be “secretive”? Google has a direct line with the NSA.

Comment by Housing Analyst
2014-08-07 07:52:14

Heard it again today……. “I still can’t get rid of this damn house after lowering the price”

Comment by azdude
2014-08-07 10:52:51

still renting going nowhere?

Comment by Housing Analyst
2014-08-07 12:51:15

How far underwater are you? $150k? $200k?

Comment by azdude
2014-08-07 13:24:02

still strumming that guitar hoping for a big break I assume?

The banks are the authority and want you !

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Comment by Housing Analyst
2014-08-07 16:59:27


Comment by Albuquerquedan
2014-08-07 09:12:03

Not much is being made of it but ISIS now controls a major dam. If they blew it up they could flood Baghdad with 15 feet of water and take a major part of the electric grid offline.

Comment by Albuquerquedan
2014-08-07 09:21:05

From NYT, and before people nitpick it a 65 foot wave when it is blown up by the time it reaches Baghdad it would flood them under 15 feet:

ERBIL, Iraq — Sunni militants captured the Mosul dam, the largest in Iraq, on Thursday as their advances in the country’s north created an onslaught of refugees and set off fearful rumors in Erbil, the Kurdish regional capital.

Residents near the dam and officials in the region confirmed that the Islamic State in Iraq and Syria, or ISIS, held the dam, a potentially catastrophic development for Iraq’s civilian population.

The dam, which sits on the Tigris River and is about 30 miles northwest of the city of Mosul, provides electricity to Mosul and controls the water supply for a large amount of territory. A report published in 2007 by the United States government, which had been involved with work on the dam, warned that should it fail, a 65-foot wave of water could be unleashed across areas of northern Iraq.

Comment by goon squad
2014-08-07 09:25:21

Current banner ad on HBB (yes I clicked it so Ben gets a $0.0002 kickback)

Comment by Albuquerquedan
2014-08-07 09:46:40

Where do you find Carolina Guerra?

Comment by Albuquerquedan
2014-08-07 09:41:42

Meanwhile Obama cannot make a decision on XL, from Chinamining:

Updated: 2014-08-07 08:31
An oil pipeline connecting Myanmar’s western coast and China’s southwestern Yunan province has been completed and is expected to begin operating later this year. It is one of two pipelines built by the China-Myanmar Pipeline Project. The other - a gas pipeline that runs parallel to it - began operating last year. The project is expected to benefit more than 100 million people in the two countries.

Twenty-seven-year-old Kania Aung checks gas pipes to make sure there is no leakage. He is one of six local employees working at the Mandalay off-take station of the project.

Six companies from China, Myanmar, South Korea, and India have created two joint companies to develop the project. And China National Petroleum Corporation, or CNPC, is the controlling party of the joint venture.

The two pipelines are expected to provide Myanmar with 2 million tons of crude oil and 2 billion cubic meters of natural gas annually. Thirty years from now, the two pipelines will be transferred to the Myanmar government, becoming part of the country’s national assets.

Xinhua, vice president of South-East Asia Gas and Crude Oil Pipeline Co. Ltd., said that CNPC has invested around US$15 million into local public welfare projects, including power plants, medical treatment, and education. Myanmar is still a relatively poor country, but its economic potential has been enhanced by access to foreign resources, in the form of trade, foreign investment, and multilateral assistance.

Last year, outside firms invest a record-breaking US$3.5 billion into Myanmar. And there was more than US$1 billion in foreign direct investment in the first two months of the current fiscal year.

It will be difficult for Myanmar to quickly establish a business environment in which foreign investors such as CNPC can have immediate and total confidence. But as Myanmar is determined to open up, the country is keen to see foreign investors help lift its economic performance to its full potential.

Comment by Albuquerquedan
2014-08-07 10:46:53

more and a hint of the secret “war” going on between the U.S. and China:

Comment by Guillotine Renovator
2014-08-07 10:48:38

33 of 93 posts, 35% of all posts, are Albuquerquedan (Scarecrow), and NONE of them housing related, or interesting.

Comment by Albuquerquedan
2014-08-07 10:54:49

I do not think you could get more housing related than the Brazilian posts. But you could not find Brazil on a map.

Comment by Guillotine Renovator
2014-08-07 11:53:31

Yesterday I lived there, today I can’t find it on the map. Got any more LIES, Scarecrow?

Comment by "Auntie Fed, why won't you love ME?"
2014-08-07 11:35:54

Exactly. He should pay for his own server.

Comment by Albuquerquedan
2014-08-07 12:21:47

Exactly what I said turning to witch doctors although the PC press calls them traditional healers:

In Sierra Leone, with the most Ebola cases in the epidemic, a fearful population is failing to seek medical attention for any diseases, health officials say. If they have malaria, the feeling is they don’t want to go near a hospital with Ebola cases. If it’s Ebola, they don’t believe the hospitals can help them anyway, instead turning to traditional healers.

Comment by Albuquerquedan
Comment by Albuquerquedan
2014-08-07 12:31:27

What do you think of this advice from a traditional healer?

Comment by azdude
2014-08-07 13:28:57

wheres the value? sheep pay retail. the millenials are the new greater fools. wall street whipping boys.

the muppets have listened to cramer way too long.

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Comment by "Auntie Fed, why won't you love ME?"
2014-08-07 13:34:39

I hope you accidentally dropped that comment in the wrong place. Otherwise, it’s an extremely disturbing train of thought.

Comment by azdude
2014-08-07 17:35:29

I did dude it was meant for your post starting with CNN touting below?

Comment by rms
2014-08-07 20:52:07

“HIV men rape virgins in search for cure”

Sounds like a heck-of-a-place; what’s a 3/2 ranch cost there?

Comment by MightyMike
2014-08-07 14:03:00

Why would calling them witch doctors be preferable?

Comment by Albuquerquedan
2014-08-07 14:19:46

Because it reflects their level of competence. Some traditional healers have actually identified plants with medicinal properties. However, in Africa it seems to be rape a virgin, kill an albino etc.

Comment by Albuquerquedan
2014-08-07 14:24:40

Excerpt from link:

Last week an albino woman in a rural area of the East African country of Tanzania was murdered for her body parts. Two witch doctors have been arrested in connection with the death, though it’s not clear whether the pair committed the crime themselves or hired others to mutilate the woman.

According to a news report from Australia’s Skynews:

“Munghu Lugata, 40, was killed after attackers hacked off her left leg above the knee and chopped off three fingers on Monday… Charles Mkumbo, police chief of the Simiyu region in northwestern Tanzania, said a man and a woman, Gudawa Yalema and Shiwa Masalu, had been arrested.” Under the Same Sun, a foundation created to help albino victims in Africa, issued a statement adding that “‘Her grossly mutilated body was discovered outside of her home by her own niece’ and that ‘more than 70 albinos have been killed since 2000, with a similar number suffering violent attacks.’”

In Africa, witch doctors are consulted not only for healing diseases, but also for placing (or removing) magic curses or bringing luck in love or business. The belief and practice of using body parts for magical ritual or benefit is called muti. Muti murders are particularly brutal, with knives and machetes used to cut and hack off limbs, breasts, and other body parts from their living victims.

Comment by "Auntie Fed, why won't you love ME?"
2014-08-07 12:30:39

CNN is touting dividend-paying stocks today. I think that’s a good sign; Maybe the PTB has decided that the crash can’t be stopped now, so they’re just trying to steer people into different stocks.

Comment by RioAmericanInBrasil
2014-08-07 13:10:21

It’s probably not true because it’s being reported by a left-leaning site.

House Republicans Finally Surrender To ACORN

WASHINGTON — After voting 13 times to block funding to an anti-poverty organization that does not exist, House Republicans appear to be throwing in the towel.

The Association of Community Organizations for Reform Now
— better known as ACORN — disbanded in early 2010 because it was out of money. It was out of money because Congress had defunded the organization in late 2009, after conservative provocateur James O’Keefe had posted selectively edited videos that appeared to show the organization offering advice on how to avoid taxes related to prostitution and human trafficking. Multiple subsequent government investigations cleared the organization of wrongdoing.

The demise of ACORN didn’t end the Republican crusade against the organization. Again and again, the House GOP passed appropriations bills with language specifically banning the use of any funds for ACORN — even though ACORN did not exist.

…..”Now that the Republicans have been forced by Obama to give in, it’s time to get government funds flowing to ACORN again so we can steal another election in 2016,” jeered one House Democratic aide, referencing longstanding voter fraud conspiracy theories involving ACORN. Voter fraud is extraordinarily rare.

Comment by reedalberger
2014-08-08 00:20:01

“Voter fraud is extraordinarily rare.”

Funny, that’s what all subversive revolutionaries say.


Comment by RioAmericanInBrasil
2014-08-07 13:16:21

Even though I think the TeaParty highly hypocritical, it’s sad to see how the system corrupts nearly everyone.

How the Tea Party became as corrupt as the Beltway it loathes
The Tea Party movement started in opposition to Washington’s self-dealing. But the sad irony is that they have become mirror images.

This week, ProPublica released a report on the financial (and moral) corruption of a Tea Party group operating under the name Move America Forward, which was founded by one Sal Russo. Russo also helped start the Our Country Deserves Better PAC, aka the Tea Party Express. Move America Forward has run fake drives to give care packages to troops, stolen images of other charitable campaigns and passed them off as its own, and trumpeted a nonexistent partnership with Walter Reed Hospital — all while funneling very real millions to itself. The group is an industry leader at taking your Tea Party sentiments (if you have them) and turning them into profits.

Unfortunately, the continuing success of Sal Russo and the Tea Party Express is emblematic of a larger failure of the American right — and perhaps the larger project of American self-governance.

Earlier this year, The Daily Caller’s Alexis Levinson reported that other Tea Party groups that had raised millions spent up to 80 percent of their money on operating expenditures, salaries, consultants, and mailing list companies, which were often owned by the people who ran the groups themselves. The Tea Party is essentially a landlord class; its fiefdom is the truly felt convictions of others.

There is nothing new about this. The Tea Party gained traction in an environment defined by massive resentment and fear directed at the Obama presidency, disgust at the bailouts of the Bush and Obama eras, and the wreckage of a Republican electoral defeat, all of which was especially conducive to the growth of parasite groups like the Tea Party Express.

Comment by X-GSfixr
2014-08-07 13:32:39

I hate to don my “Ugly American Xenophobe” hat, but……

Is there some kind of Mexican/Hispanic “Pizz off the Gringos by dialing the Wrong Number Day” being celebrated today?

The phone at the hangar has been ringing off the wall today. Lots of out of state numbers. Almost all of them by “English as a second language” types

Comment by "Auntie Fed, why won't you love ME?"
2014-08-07 13:36:33

idk, but the big boss over here recently laid down the law about languages. Our language is English. You speak it when you’re at work. I was all like “YAY”!

Comment by Michael Viking
2014-08-07 14:32:12

I was all like

This isn’t English…

Comment by "Auntie Fed, why won't you love ME?"
2014-08-07 14:53:36

Yes it is.

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Comment by Whac-A-Bubble™
2014-08-07 20:36:25

It’s like California English.

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Comment by Albuquerquedan
2014-08-07 14:36:58

Excerpt from bombing article. Of course, in the Obama administration he would be a rear admiral. Cannot make this stuff up. So was it the Iraqi air force or was it the United States?

“But Rear Adm. John Kirby, the Pentagon press secretary, said on Twitter that the reports of the bombings were false.”

Comment by Albuquerquedan
2014-08-07 14:58:52

A week ago the CDC, was saying no worries, now it is inevitable. I said that the CDC official was talking past his/her expertise.

Comment by "Auntie Fed, why won't you love ME?"
2014-08-07 15:44:44

That is a given, since we just brought two patients here. The virus has now (by definition) entered our country.

The point of the CDC is that it will not spread here. People who contracted it by kissing an ebola-killed corpse might get on an airplane and travel here. We (unlike Africans) know what a virus is. We even have a serum that is apparently saving two people right now, but someone is going to have to pay the company to make it available, and the FDA will have to give an emergency exemption. Data must be kept, and we must ensure that the patients are not carrying the virus before leaving quarantine.

Comment by "Auntie Fed, why won't you love ME?"
2014-08-07 15:46:56

To clarify: It has “spread” to the United States, it will not spread within the United States.

Comment by oxide
2014-08-07 16:16:59

There’s an article on CNN now. Some prof thinks that giving the two doses of serum to white Americans is racist, and that as soon as they can make more they should ship it directly to Africa. Much hue and outcry in the comments.

I dunno. ISTM that if Africa wants very expensive ebola drugs for free, the least they could do is have some decent infrastructure so that there are as few cases of ebola as possible. Like, stop attacking the doctors. Stop handling infected relatives. And get some clean water and a sewage system and some reliable electricity. American had this in the 1920’s. How hard can this be?

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Comment by RioAmericanInBrasil
2014-08-07 15:14:37

Check out your hero Putin’s country. What do you think of this PropagandaDan?

Russians Mock Obama With Racist Laser Projection On U.S. Embassy In Moscow

President Barack Obama received birthday greetings from around the world when he turned 53 years old on Monday, but some of those wishes weren’t exactly well.

In Russia, protesters used lasers to beam a crude, racist image of Obama onto the U.S. Embassy in Moscow. The image showed the president in a birthday hat with a banana going in and out of his mouth followed by projections of the words “Obama” and “happy birthday” in English.

The Moscow Student Initiative took responsibility for the stunt on VK, a social network popular in Russia.

Racially-charged messages aimed at Obama have been cropping up with alarming regularity in Russia. Also on the president’s birthday, a banner depicting Obama as the “Three Wise Monkeys” — see no evil, hear no evil and speak no evil — was unfurled near the U.S. Consular Section in Moscow, The Washington Post reported.

Comment by Albuquerquedan
2014-08-07 15:35:24

You sure that was a banana?

Comment by Albuquerquedan
2014-08-07 15:50:02

Maybe they are responding to the claim he is the United States’ first “gay” president.

Comment by RioAmericanInBrasil
2014-08-07 15:55:09

You sure that was a banana?

What would be more disrespectful?

Comment by Albuquerquedan
2014-08-07 16:04:32

I am more worried about Obama’s foreign policies that have killed hundreds of thousands in Syria and Iraq and created an Islamic organization more powerful and deranged than we were facing at the beginning of his presidency. I am more worried that our relationship with Russia is backed to where it was in the cold war when they do not have an ideology of world conquest. They insulted Obama, who cares, it never bothered me when the world insulted Bush and it certainly never bothered anyone of the left in this country they were doing it too.

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Comment by AbsoluteBeginner
2014-08-07 15:36:51

Gee, a little austerity, maybe for a few years, and we could pay off foreign debt and just owe ourselves money. I’d take mine in a few acres of government land somewhere arable:

Comment by Albuquerquedan
2014-08-07 16:08:30

A little austerity? Five trillion dollars owed to foreign countries and the deficits are projected to start increasing again soon. Hard to pay off debts when you are adding to them. Increase the interest rates on our debts to a more normal range and that alone would add more than $500 billion a year to the debt.

Comment by AbsoluteBeginner
2014-08-07 17:05:31

One day the government will start using the talking point that we only owe the rest of the world about 25% of overall debt. I imagine some kind of reset will be thought up after that. Maybe swap all the domestic debt for some kind of different debt, maybe a 100 year bond. Is that unfathomable? A few years of austerity to pay off other nations and then corral/consolidate domestic debt with a special issuance. Either that or tax receipts will have to go higher. Just don’t see how a greying population and dwindling middle class can carry the debt generations out.

Comment by MightyMike
2014-08-07 16:15:27

This is towards the end of that page:

Yes, it’s a boatload of debt. But the experience of Japan, the U.S. after World War 2, and other countries, suggests that it’s a manageable amount, as long as we eventually get our long-term entitlement spending under control.

I wonder how got on to the Blaze. They usually like to talk about looming catastrophes.

Comment by Albuquerquedan
2014-08-07 16:27:33

as long as we eventually get our long-term entitlement spending under control.

That is very comforting since this president failed to do that when he had that opportunity at the beginning of his presidency with the Bowles/Simpson commission report and then actually struck a deal with the Speaker which would have cut some what less and raised taxes more, and then walked away. The chance of getting entitlements under control when the disability fund runs out in 2016 is slim to none.

Comment by goon squad
2014-08-07 16:55:52

eazy e - eazy-er said than dunn (rated pg)

Comment by goon squad
2014-08-07 17:25:48

Ice T - Mic Contract (not rated pg)

This is what being young and being alive in the early 1990’s means to me

Comment by goon squad
2014-08-07 17:30:04

De La Soul - Stakes Is High:

Almost 20 years old, they don’t make hip-hop songs like this anymore…

Comment by goon squad
2014-08-07 18:14:01

Ice Cube - Check Yo Self (Before you wreck yo self)

Comment by goon squad
2014-08-07 18:16:23

Cypress Hill - Cypress Hill self-titled album, full album:

Comment by tresho
2014-08-07 17:09:30

Goodbye Albuquerque, Land of Violence NM governor is running for re-election & local commentators are having fun with this article. Poor New Mexico, so far from heaven, and so close to Texas!

Comment by tresho
2014-08-07 17:26:00

Far west revival: Flagstaff’s western edge is growing in the real estate market

The real estate market on the west side of Flagstaff is starting to heat up.

— Nearly 200 acres are up for auction west of Woody Mountain Road off Route 66. Tranzon Auction Co. is asking for a minimum bid of $3.1 million for the two parcels. Flagstaff Planning Development Manager Tiffany Antol said no other plans have ever been submitted for the two parcels.

— A 227-unit student apartment complex with 815 beds is also slated for six acres across Woody Mountain Road from Woody Mountain Campground.

— The sale of the campground for $2.2 million has been pending since November. (A campground employee said the place has been for sale for years)

— Presidio in the Pines just south of the campground is out of foreclosure and under construction, with dozens of houses already occupied and dozens more under construction. The 91-acre Presidio in the Pines was originally slated for 900 homes along with shops and offices. But the original developers ran into financial difficulty, and Miramonte Homes bought the majority of the project’s assets.

The city and the bonding agency for the original developer used the performance bonds for the project to install the necessary infrastructure so the project could move forward in April.

Miramonte is building single-family homes at Presidio with prices starting just under $300,000. Capstone Homes is also building houses in the project, and it pulled 10 housing construction permits for Presidio in July alone.

— The old McAllister Ranch on West Route 66 just beyond the city line has been targeted for development as the city’s new public works yard.

Comment by AbsoluteBeginner
2014-08-07 18:52:37

Wonder how Kingman is doing. Did they get bubblicious in the post 2001 run-up?

Comment by Whac-A-Bubble™
2014-08-07 18:09:31

How is the US mortgage lending sector faring these days?

Comment by Whac-A-Bubble™
2014-08-07 18:13:43

Aug. 7, 2014, 2:23 p.m. EDT
As home-equity loans reset, these owners are most at risk
Report says 20% or more of borrowers could face default
By Amy Hoak, MarketWatch

Home-equity lines of credit, popular during the housing boom of the mid-2000s, are now a source of concern, as many of these loans are due to reset to higher payments in the next few years.

The worry? The payment shock some consumers will face could put a significant number of borrowers into default, and those financial stumbles could ripple through the economy. Some go so far to suggest it could throw the country into a recession, said Ezra Becker, vice president of research and consulting for TransUnion, a credit bureau.

But a new TransUnion report aimed at determining the size and severity of the problem found that the reality may not be as horrible as feared.

Somewhere between $50 billion and $79 billion in balances on home-equity lines of credit could be at an elevated risk of defaulting in the next few years, the study found. That’s fewer than 20% of home-equity line balances; there was a total of $474 billion in HELOC balances outstanding as of Dec. 2013.

“The sky is not falling here,” Becker said. “Seventy-nine billion in elevated risk is not a small number, and needs to be managed,” he said, but added that the TransUnion report offered some perspective on the issue, noting that payment resets won’t be debilitating for the masses.

Who’s at risk of payment shock

The structure of a HELOC allows for a draw period where consumers can use the funds and can often make interest-only payments. Then, after a set number of years, it enters an end-of-draw period, where funds can no longer be borrowed and consumer payments consist of both interest and principal.

More than 92%, or $438 billion, in HELOC balances hadn’t entered their end-of-draw period as of the end of 2013, according to the report. And nearly half of all HELOC balances at that time originated between 2005 and 2007, many of them with draw periods of 10 years. That means over the next few years, many of these loans will enter the end-of-draw period.

Comment by Whac-A-Bubble™
2014-08-07 18:19:16

Whad’ya know: Reverting to subprime lending standards reduces mortgage borrowers’ credit scores!

Comment by Whac-A-Bubble™
2014-08-07 18:22:46

Mortgage borrowers’ credit scores slide this year
August 7, 2014, 4:06 PM ET

There’s been a hat trick of promising mortgage data this week, signaling that consumers are having a somewhat easier time in the marketplace.

Here’s the latest: Credit scores are declining for home mortgages originated this year and acquired by Fannie Mae FNMA and Freddie Mac FMCC , the federally controlled finance giants reported Thursday.

Some of the toughest hurdles for the U.S. housing market’s recovery have been the strict standards lenders erected in the wake of the meltdown. Lenders consider credit scores among other factors when approving mortgages.

But it looks like some lenders are starting to ease standards – a development that many economists say is long overdue.

Fannie reported that the average credit score (as measured by FICO) for acquired single-family-home loans that were originated in the second quarter was 744, down from 753 in 2013 and a peak of 762 in 2010 and 2011, according to details in a credit supplement to the company’s quarterly earnings release. Similarly, Freddie reported that the average FICO score year-to-date was 742, down from 749 last year, and a recent peak of 756.

Those recent declines reverse a chunk of jumps up seen in 2008 and 2009. In 2007, Fannie’s average score was 716, while Freddie’s was 711. Moving average scores from the low-700s to the mid-700s can narrow the pool of eligible borrowers. According to April data from FICO, about 54% of the population has a credit score of at least 700. That proportion narrows to 38% when including just those with a score of at least 750.

Comment by Whac-A-Bubble™
2014-08-07 18:27:15

Judge Rakoff for president!

Comment by Whac-A-Bubble™
2014-08-07 18:28:52

Investment Banking | Legal/Regulatory
Bank of America Offers U.S. Biggest Settlement in History Over Toxic Mortgage Loans
August 6, 2014 4:27 pm
August 7, 2014 3:06 pm
Updated, 9:58 p.m. | After months of lowball offers and heels dug in, it took only 24 hours for Bank of America to suddenly cave in to the government, agreeing to the largest single federal settlement in the history of corporate America.

The tentative deal — which people briefed on the matter said would cost Bank of America more than $16 billion to settle investigations into its sale of toxic mortgage securities — started to take shape last week after the Justice Department rejected yet another settlement offer from the bank. Then, a wild card entered the fray.

Judge Jed S. Rakoff, a longtime thorn in the side of Wall Street and Washington, issued an unexpected ruling in another Bank of America case that eroded what was left of the bank’s negotiating leverage. Judge Rakoff, of Federal District Court in Manhattan, ordered the bank to pay nearly $1.3 billion for selling 17,600 loans, many of which were defective. Bank of America had previously lost that case, which involved its Countrywide Financial unit, at a jury trial.

The bank’s top lawyers and executives, who made the ill-fated decision to fight that case in Judge Rakoff’s court rather than settle, appeared to recognize that another courtroom battle would not only be futile but extremely expensive, according to two of the people briefed on the matter. The remaining cases, which by contrast would involve billions of dollars in securities backed by home loans, could have cost the bank multiples more than Judge Rakoff’s penalty, perhaps even more than a settlement with the Justice Department.

With the bank reeling from the judge’s decision, Attorney General Eric H. Holder Jr. delivered the final blow. Mr. Holder, who had rebuffed earlier requests for a meeting with the bank’s chief executive, decided to open the lines of communication.

Comment by Whac-A-Bubble™
2014-08-07 18:29:52

Did you dump your junk yet?

Comment by Whac-A-Bubble™
2014-08-07 18:37:08

I’m guessing the announcement of renewed US intervention in Iraq is not exactly what the “risk on” crowd longs to hear?

Comment by Whac-A-Bubble™
2014-08-07 18:41:16

Bulletin Obama: U.S. to conduct airstrikes vs. Islamist forces as needed »

Aug. 7, 2014, 7:31 p.m. EDT
U.S. starts Iraq aid drop, weighs strikes
By Julian E. Barnes and Nour Malas

The Obama administration prepared plans for airstrikes against Islamic militants in northern Iraq, and began an emergency mission to airdrop water and food to members of a religious minority trapped in the mountains by advancing Islamic militants, U.S. officials said.

The sudden acceleration of U.S. military activity reflected White House concern over a burgeoning crisis in the Kurdish region of Iraq as the militant group calling itself the Islamic State pressed an offensive against local forces, seizing areas long considered safe.

Comment by Whac-A-Bubble™
2014-08-07 18:42:25

This is setting up for a repeat of Fall 1987.

Comment by Whac-A-Bubble™
2014-08-07 18:43:25

Aug. 7, 2014, 5:15 p.m. EDT
Junk bond funds see record $7.1 bln outflow
By Ben Eisen

NEW YORK (MarketWatch) — Investors pulled a record $7.1 billion from junk bond funds during the past week, marking an acceleration in the pace of withdrawals as the market for low-rated corporate debt experiences turbulence, according to Barron’s, which cited Lipper data. The outflows during the week ended Wednesday mark the fourth consecutive week of withdrawals. Retail investors have been leaving junk bond funds amid concerns about high prices in the market.

Comment by Whac-A-Bubble™
2014-08-07 18:46:09

Aug. 7, 2014, 4:11 p.m. EDT
10-year Treasury yield falls to 13-month low
Investors look to Ukraine, ECB, jobless claims
By Ben Eisen, MarketWatch

NEW YORK (MarketWatch) — Treasury prices surged Thursday, pushing benchmark yields to their lowest closing levels in over 13 months.

The 10-year note yield, which falls as prices rise, dropped 6 basis points on the day to 2.415%. The yield closed at its lowest since June 19, 2013, when it hit 2.312%, according to Tradeweb. The yield has fallen for five consecutive days.

Stocks fell , underscoring a risk-off tone amid heightening geopolitical tensions in Ukraine.

“As the day wore on, there were reports of [Ukrainian] fighter jets down, and equities went down and Treasurys crept back up,” said Sean Murphy, senior Treasurys trader at Société Générale.

Comment by Whac-A-Bubble™
2014-08-07 18:51:21

Aug. 7, 2014, 8:40 p.m. EDT
Japan stocks fall hard on weak earnings, U.S. losses
By Michael Kitchen

LOS ANGELES (MarketWatch) — Tokyo stocks are giving up their gains from the previous session and then some, as the weight of U.S. losses overnight helped push the Nikkei Average (JP:NIK -1.55%) down 1.3% in early Friday trading (it closed 0.5% higher Thursday) to 15,041, testing the psychologically important 15,000 level. The broader Topix retreated by 1%.

Comment by rms
2014-08-07 19:31:34

“U.S. Suspected Israel Had Role in Missing Uranium”

Federal Officials Believed Ally Used Materials Lifted From Pennsylvania in the 1960s Toward Its Nuclear-Weapons Program

Comment by Whac-A-Bubble™
2014-08-07 20:37:37

HI is in line to get hammered by two hurricanes (typhoons?) in short succession.

Must be global warming…

Comment by Whac-A-Bubble™
2014-08-07 20:39:23

Is now a good time for dips to buy?

Comment by Whac-A-Bubble™
2014-08-07 21:18:42

ft dot com
Asian stocks fall as Obama authorises Iraq airstrikes
By Patrick McGee in Hong Kong

Friday 04:00 BST. Asia-Pacific investors were selling risky assets and stuffing cash into havens after US President Barack Obama authorised air strikes in northern Iraq.

Japan’s Nikkei 225 average was down 3 per cent, its worst session since mid-February and at its lowest point since early June. Australia’s S&P/ASX 200 fell 1.1 per cent to a four-week low, Hong Kong’s Hang Seng declined 0.7 per cent and South Korea’s Kospi shed 1.3 per cent.

In the past 12 hours the 10-year US Treasury yield has declined 10 basis points to 2.37 per cent – its lowest level in 14 months – as investors seek shelter.

The tone across Asia was already subdued after Moscow expanded its import restrictions in response to western sanctions over Russia’s role in the Ukraine crisis, fuelling concerns of a trade war.

Neil Shearing at Capital Economics said the biggest loser would be Russia itself. “It is difficult to say at this stage what effect the ban will have on Russia’s economy, but the cost could be significant, with the main impact likely to come via higher inflation,” he said.

Losses across the region extended after Mr Obama pledged to take action in northern Iraq, saying the US could not turn a blind eye to Kurdish minorities who are stranded on a mountain and under siege by militants.

Mr Obama said that “people are starving and children are dying of thirst” and that without aid and defence, their choice is to descend down the mountain and be slaughtered, or stay on the mountain and die.

Comment by Whac-A-Bubble™
2014-08-07 20:47:27

Watch out for grandmas who mix wine and Xanax.

Comment by Whac-A-Bubble™
2014-08-07 20:50:58

Is it my imagination, or does this type of horror story disproportionately often come out of Florida? (Recalling earlier HBB posts about the face-eating bath salts snorter…)

8-year-old tried to save brother, 6, from grandma
Martha White, 63, was booked into the Leon County (Fla.) Jail on a first-degree murder charge Wednesday, Aug. 6, 2014, in the death of her grandson. The Tallahassee Democrat
Sean Rossman, The Tallahassee Democrat 3:46 p.m. EDT August 7, 2014

TALLAHASSEE — Mason Rhinehart and his brother were playing video games in their suburban Tallahassee home Tuesday morning when their grandmother, Martha White, interrupted to say she had a surprise for them.

White, 63, who had been babysitting the boys in Killearn Lakes Plantation, Fla., then took 6-year-old Mason into the bathroom and locked the door behind her, a probable cause affidavit said. Mason’s brother, age 8, heard him start to cry from behind the door and say, “I don’t want to die, please don’t kill me.”

The boy said he tried to get in the bathroom, but could not. He then called his father and hid, court documents said.

We are not clear on the motive at this point in time. That’s one of the many things that the investigators are continuing to dig into.
Lt. James McQuaig, spokesman Leon County Sheriff’s Office

Within five minutes, first responders were on the scene and found Mason lying on the bathroom floor with multiple stab wounds to the chest, said Lt. James McQuaig, Leon County Sheriff’s Office spokesman. Leon County Emergency Medical Services rushed him to the hospital, but Mason did not survive.

White was not there when deputies arrived but the boys’ parents said she was the one home with them while they were at work.

Mason’s brother said he saw White leave the home with a bottle of wine but not before telling him she “had a surprise for him too,” court documents said. McQuaig said Mason’s brother was not injured in the incident.

Deputies identified White as a suspect when they found her covered in blood at the dead end of a block, about a half-mile away from the boys’ parents’ home. White’s clothing was covered with blood, court documents said. She also had a bottle of wine and a Xanax.

Comment by Whac-A-Bubble™
2014-08-07 20:58:55

What do you want to bet that Grandma was a foreclosure victim?

Comment by Whac-A-Bubble™
2014-08-07 20:51:58

Oh bugger…sounds like ebola is spreading.

Comment by Whac-A-Bubble™
2014-08-07 20:53:18

U.S. orders diplomats’ families to leave Liberia as Ebola spreads
WASHINGTON Thu Aug 7, 2014 10:07pm EDT

U.S. Centers for Disease Control and Prevention (CDC) educational materials are displayed at a hearing of a House Foreign Affairs subcommittee, about the Ebola crisis in West Africa, on Capitol Hill in Washington August 7, 2014. REUTERS/Jonathan Ernst

(Reuters) - The United States on Thursday ordered families of its diplomats in Liberia to leave and warned against non-essential travel to the West African country because of the growing Ebola outbreak.

A State Department statement said U.S. staff would remain on active duty at the embassy and additional staff were being sent to help the government tackle the outbreak of the deadly virus.

“The latest wave of the outbreak has overwhelmed Liberia’s health system and most health facilities lack sufficient staff or resources to address the continuing transmission” of the disease, it said.

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