Thursday, September 17, 2009

Davos on the Edge / Market Thread 9.18.2009

  • Dollar "May" Fall Further After Reaching Lowest in Almost a Year
  • How to Lose a War: Pentagon Hires Investment Bankers, Preps for Economic Warfare (Seen on the Coming Depression Blogspot)
  • David Tice Part 1-4 (H/T iDoctor)
  • Your ETF-silver is For Sale
  • Top Goldman Lobbyist Barred From Communicating With House's Financial Services Committee
  • Report: Fed Reviews Banks CRE Exposure
  • Dem Senator Warns of 'Big, Big Tax' on Middle Class in Baucus Bill
  • Flow of Funds Analysis - Big Declines in Credit Market Debt (except for Government)

Economy

Dollar "May" Fall Further After Reaching Lowest in Almost a Year

“The dollar is on its back heels,” said Brian Dolan, chief currency strategist at FOREX.com, a unit of the online currency trading firm Gain Capital in Bedminster, New Jersey.

How to Lose a War: Pentagon Hires the Type Who Got us Into This, Preps for Economic Warfare (Seen on the Coming Depression Blogspot)

But instead of military brass plotting America’s defense, it was hedge-fund managers, professors and executives from at least one investment bank, UBS – all invited by the Pentagon to play out global scenarios that could shift the balance of power between the world’s leading economies.

Their efforts were carefully observed and recorded by uniformed military officers and members of the U.S. intelligence community.

In the end, there was sobering news for the United States – the savviest economic warrior proved to be China, a growing economic power that strengthened its position the most over the course of the war-game.

The United States remained the world’s largest economy but significantly degraded its standing in a series of financial skirmishes with Russia, participants said.

The war game demonstrated that in post-Sept. 11 world, the Pentagon is thinking about a wide range of threats to America’s position in the world, including some that could come far from the battlefield.

And it’s hardly science fiction. China recently shook the value of the dollar in global currency markets merely by questioning whether the recession put China’s $1 trillion in U.S. government bond holdings at risk – forcing President Barack Obama to issue a hasty defense of the dollar.

“This was an example of the changing nature of conflict,” said Paul Bracken, a professor and expert in private equity at the Yale School of Management who attended the sessions. “The purpose of the game is not really to predict the future, but to discover the issues you need to be thinking about.”

David Tice Part 1-4 (H/T iDoctor)

1

2

3


4

Your ETF-silver is For Sale

If you want to own silver, then buy real silver. Thanks to the manipulations of the bullion banks (including their massive scam with the bullion-ETF's), we can all still buy real silver at a ridiculously low price – for a very limited amount of time.

If you're buying a bullion-ETF, or holding a bullion-ETF, then very likely all you are holding is paper.

Top Goldman Lobbyist Barred From Communicating With House's Financial Services Committee

for a period of 12 months.

Report: Fed Reviews Banks CRE Exposure

People familiar with the examinations say the fed is "getting granular" looking, for example, at the differences in banks' concentration of construction loans vs. multifamily vs. motels and retail.

Dem Senator Warns of 'Big, Big Tax' on Middle Class in Baucus Bill

Given how much money this kind of tax can raise, Rockefeller says he understands why it is "tempting."


Flow of Funds Analysis - Big Declines in Credit Market Debt (except for Government)