GSC - ÛnìCrêdit Sec.: It's the Europocalypse

[Small Biz Owner]

The higher the inflation, the less money people have to invest in the markets. Especially since wages are still falling.

Federal Reserve — who would like to think that energy and food inflation do not count. Simply put, the monthly December inflation releases for the CPI-U (annualized 6.2% inflation), CPI-W (annualized 7.8% inflation) and PPI (14.0% annualized inflation) were disasters .

usawatchdog.com/inflation-2011-is-here/



U.S. tax data shows falling wages, rising inequality « Inteltrends
Nov 7, 2010 ... U.S. tax data shows falling wages, rising inequality ... Average annual wages
for U.S. workers fell by $457 in 2009

inteltrends.wordpress.com/2010/11/07/u-s-tax-data-shows-falling-wages-rising-inequality/

[Virgil Showlion]

Thanks for the real numbers, Biz.

If nothing else, falling home prices were an excellent way to hide inflation.

[dumdeedoe]

yep and don't forget electronics always does the trick...

[Virgil Showlion]

Some characteristically must-read stuff from ZH concerning the Fukushima "trust us, it isn't a" meltdown, where the commenters are showing some good wit.

Article: Radioactive Cesium Content In Japan Sea Water 25 Times Limit, Radioactive Iodine At 127 TImes Maximum Allowed
Summary:

According to Kyodo, the Fukushima sea fallout is getting material enough to where the sea soon won't need a blacklight to glow in the dark:

• Kyodo says radioactive caesium found in sea water 24.8 times limit
• Kyodo says radioactive Iodine found in sea water 126.7 times limit

The only logical solution is for the Japanese ministry of deadly disinformation to raise the radioactive Cesium sea water limit by 25 times, and that of Iodine by 127 times. And all shall be well.

Article: Thermal Images From Fukushima Indicate Blistering 128 Degrees Celsius Zone In Reactor #3
Summary:

Next, a picture from Die Welt, emphasizing Reactor 3 and confirming that previous lies that all temperatures at Reactors 1 through 4, were under 100 degrees Celsius, were nothing but. Note the area indicating 128 oC Celsius. We would assume that is the reactor core area (which refutes the lie). If, instead, that is the spent fuel rod area, then we have some very big problems, even if TEPCO is telling the truth for once.

Classic Comments:

"Looks like JPM's silver short storage area!"

"Somehow, I get the idea that even if a ____ing mushroom cloud bloomed over that plant, TEPCO would still be insisting that they're "making progress." At what? Rendering an entire island nation an uninhabitable wasteland?"

"Please Remain Calm! The Ministry of Thermal Redaction has raised the safe limit of heat exposure for humans to 130 degrees Celsius. The workers may now enter the chamber to begin repairs."

"How long until they raise it to 150?"
"Depends on how many functioning technicians they have left."

"128 C is nothing. Hell, my AMD graphics card easily reaches 90."

"Gordon Freeman and his HEV suit could fix it. "

"Graham cracker, marshmallow, and hershey bar sales poised to soar...CNBC."
"+1"

"The heat itself is not the point. The point is that at 128C what water remains slowly boil away. Not good."
"not anymore. The ministery has just raised the temperature for boiling water. Now it boils at minimum 130°C."
"+ TEPCO Propaganda for the day"

"You can't raise the pool temperature to 128C without pressurizing it. (And no, there's no chance the water has been superheated.)"
"Dude, it means there isn't any water."
"+1, and still chuckling ;-)"

"And how does this relate to today's topic, the AT&T merger?"
"The $20B in Ben bucks from JPM says it gets the green-light."

[decoy409]

Virgil, that is some great sick humour above.

For those that missed it,let them laugh hard to this one,

Quote: RT News - 'Fukushima Triumph for Nuke Power?! Propaganda!'

[Virgil Showlion]

From Dr. Weiss over on SwingTradingDaily.com, Disaster in Japan: The Real Impact:

The disaster in Japan has completely overshadowed news of the still-raging Middle East crisis. And before that, the Middle East crisis violently shoved aside the historic budget battles in Washington, Wisconsin, Ohio, Illinois and elsewhere.

This triple-punch to the gut is hammering world’s investment markets.

And now, things are getting really strange …

As Japan’s nightmare unfolded, most experts expected investors to move their money out of Japan and into the U.S. or other major markets.

But in reality, the exact opposite is happening!

Yesterday, for instance, the Dow fell 242 points, the S&P 500 plunged 25 points, the Nasdaq declined 50, as global investors dropped U.S. stocks like hot potatoes. It was the market’s largest one-day decline in 7 months!

Even more telling, the Japanese yen soared to its highest level of all time!

But why? The answers are disturbing...

An interesting read on a telling reaction to the Japan nuclear disaster. (No, it hasn't gone away.)

[Virgil Showlion]

For any who still care, another fire has broken out at the Fukushima reactors. The damaged reactors are now leaking 10,000 terabecquerels of radiation per hour and rising. Post-Chernobyl radiation levels are now being detected in soil samples up to 30 km away from the reactors.

The IAEC has officially raised the magnitude of the disaster to 7--i.e. Chernobyl.

A green shoot, perhaps, is that the Yen carry trade is looking more and more profitable.

[jarhead1976]

Many care Virgil! Few Really Help. Good point Sir!

[lifewasgood]

Caring for those that must suffer from the natural events and then a man made catastrophe. Did the world weep for Chernobyl? No! why, cold war, tragic but true. Regardless, these type events have very long repercussions. We care!

[Virgil Showlion]

Good to know you care, Jarhead and Lifewasgood.

[mmhmm]

I think most decent human beings care. This one wept for Chernobyl, and still does. Tears will fall for Japan, as well, for many years to come. It's truly tragic.

[decoy409]

Old Bin is a great one to stay off course with this one.

[The Virginian]

U.S. tax data shows falling wages, rising inequality « Inteltrends
Nov 7, 2010 ... U.S. tax data shows falling wages, rising inequality ... Average annual wages
for U.S. workers fell by $457 in 2009

What's 0 % of 0 That's where my wages are.

[jarhead1976]

Anyone think that we will open our arms and country to Japan when the radiation levels become unsustainable? The news and world seem to have forgotten this tragedy.

[decoy409]

For any who still care,

May 2,2011 Fukushima forecast shows Cesium-137 and Iodine-131 over Northwestern US on May 5 (VIDEOS)
enenews.com/fukushima-forecast-shows-cesium-137-iodine-131-northwestern-5-videos

[Virgil Showlion]

Thanks for keeping us U2D on the Fukushima reports, Decoy.

This one in the ZH pipeline was just too green-shootey to leave out.

The WSJ Sells Out (Blatant WSJ Revisionism Redlined):

Yesterday, when we posted the full original letter submitted by True Finns leader Timo Soini titled "Why I Won't Support More Bailouts" as presented by the Wall Street Journal in verbatim, we were surprised that the WSJ, traditionally the bastion of various Fed interests (a topic previously dissected in "On The New York Fed's Editorial Influence Over The WSJ"), would allow such a truthy letter to appear on its pages. Today, courtesy of Karl Denninger who pointed out something glaringly disgusting, we were forced to look again at the letter as it now appears on the website of the WSJ. Shockingly, as the redline below indicates, the entire letter was scrubbed with blatant deletions from the original text which can still be found on the pages of Zero Hedge. It is high time that the WSJ readers demand to know whether this unprecedented scrubbing was due to an editorial intervention, or if Soini himself was responsible for this blatant revisionism. If the latter is indeed the case, perhaps supporters of the True Finn party in Finland should inquire who it was that forced their leader to adjusted his letter in such a way. And here we are making fun of Jean Claude Junker for openly lying to the media.

Fed talks.

[ty]

The disaster at the Fukushima nuclear reactor plant has now reached a 7 on the IAEC's disaster scale. '7' means 'Chernobyl'.[/img]

Oh well, accidents happen at no fault of the people that built the plant. The earthquake created this mess, not mankind. However, the Japanese people now know how to rebuild a better plant due to this disaster. Yes it's terrible, but things will get better down the line as those that suffered major quakes in other parts of the world.

[The Virginian]

Silly me - I thought they sold all their papers!

[Virgil Showlion]

Har har, Virginian. (Admittedly a poor choice of expression.)

What worries me is that blatant revisionism like this doesn't happen unless the payee has a reasonable expectation that more bailout bux are on the way.

It's no secret that AIG is tanking (again). The housing market is now a very real $6.5 trillion dollar problem; nothing 'notional' about it.

[kman]

AIG??? More opportunity for me ;D

[The Virginian]

AIG = Ain't It Great! ;D

[Virgil Showlion]

A quadruple-whammy on housing:

The Quadruple Dip (bold by me):

Since the triple dip in housing was recently circumvented courtesy of QE2, and was "transitory" in theory today's subpar housing starts and permits data is the beginning of the quadruple dip. And subpar it was: starts came at 523K on expectations of 569K, down from revised 585K previously. Permits were also ugly, missing expectations by a comparable account, printing at 551K, with consensus of 590K(and the previous revised this time lower from 594K to 574K). In starts, annualized single-family units dropped from 415k to 394k, with declines in Northeast and South, and increases in the Midwest and West. The actual, non-annualized number of starts was 46.8k, with 36.2k in single family units. Completions increased modestly from 532k to 554k. And the most interesting number was the number of houses under construction, which hit a fresh all time low on an annual, seasonally adjusted basis, or 418k.

With 1 in 8 houses sitting vacant in California, 1 in 9 in Florida, etc., etc., one wonders why anyone is bothering to build.

[decoy409]

Imagine that Virgil,silly me bringing back those fun times when the sleezes from AIG and the rest of the likes threw out the deadly curve ball on the game.

And my,things are certainly improving? They should have a smile face that is barfing.

Scorching the desert housing markets – Arizona and Nevada real estate blossomed with cheap fuel and easy access to debt. For last two years 40 percent of buyers came from all cash purchases. What happens when the well runs dry in the financial desert?

(excerpt) - The Arizona housing market is a perfect example of what happens when the housing religion spirals out of control and implodes in dramatic fashion pushing up against environmental limits. I remember driving in the blistering summer heat through Arizona before all the housing mania launched out of control in the late 1990s and thinking that the only reason the land was hospitable was because of cheap fuel and air conditioning. It costs money to move large amounts of water to an otherwise arid region. You have months of 100 plus degree weather and electric bills that run the size of your mortgage payment. A beautiful state but one based on access to affordable fuel. The housing market has crashed for both Arizona and neighboring Nevada. These areas are no stranger to booms and busts yet this time it is different. The cheap energy model that kept these locations operating is largely coming to an end. These are commuting locations. Have you ever tried walking down the Las Vegas strip during the summer time? You might as well pack two gallons of water and a cowboy hat before making it two blocks. The market has melted in the region like rubber on the bottom of your shoes.


Investors artificially prop up Arizona market

The desire to buy cheap property and low interest rates has propelled many people to purchase in Arizona. For almost two full years all cash buyers have purchased close to 40 percent of properties in the desert city of Phoenix:

www.mybudget360.com/scorching-the-desert-housing-markets-arizona-nevada-real-estate-all-cash-buyers-hold-market-2-years-up-debt-cheap-fuel-and-oil/

Well I do have to credit to how SHAP WoW has been set up. The most beautiful destructive outlaid plan for crushing purposes that I can ever recall and the only one at that in the magnitude that it is.

What is even better is that with the scattered and untold happenings that have been going down and our by the tele and newspapers,why not too many will ever know (until it is to late of course) what hit them.

[Virgil Showlion]

Arizona has bigger problems to worry about than their housing markets, if what a mounting number of ex-Arizonians have been telling me is true, Decoy.

They're undergoing a significant demographic shift which is turning them into a mini-California--the bankruptest of the bankrupt states. More of a political discussion than a market-related one. Still, it's crept into a few of my discussions as of late.

[decoy409]

Virgil, yep,then we will see those great election numbers ring loud once again today as to these numbers.

[lifewasgood]

Phoenix is classic and it is political. The City of Phoenix with a large budget deficit has decided to hand out pay increases and bonuses to city workers at a tune of 30 Million. The local population is furious, but nonetheless will probably forget by election time. The unofficial reason for the hikes is Union Labor and the local politicians who gain financially by supporting the union, will not stand against the pay hikes.

[decoy409]

Let's have some more examples of the old 'Quadruple'

The Quadruple Dip: Housing Starts, Permits Drop, Miss Expectations; Houses Under Construction At New Record Low
www.zerohedge.com/article/quadruple-dip-housing-starts-permits-drop-miss-expectations-houses-under-construction-new-re

July 28,2010 A Triple Dip?
economistsview.typepad.com/economistsview/2010/07/a-triple-dip.html

I like the 2010 look as you can 'read between the lines' easily now that we are almost a year down the road.

[decoy409]

[decoy409]

Let's have some more examples of the old 'Quadruple'

The Quadruple Dip: Housing Starts, Permits Drop, Miss Expectations; Houses Under Construction At New Record Low
www.zerohedge.com/article/quadrup....ructi on-new-re

July 28,2010 A Triple Dip?
economistsview.typepad.com/economistsview/2010/07/a-triple-dip.html

I like the 2010 look as you can 'read between the lines' easily now that we are almost a year down the road.

[decoy409]

#88 The old quadruple scoop looks like a melted one.