Logan Wildcats - 5/30/2012


Here's what we're following this morning:

ECB adds on its fingers AND toes and realizes it can't recapitalize Spain's Bankia - JPMorgan via Zero Hedge | What the Spanish government wants is not an option.  Any short-term asset purchases would only be used to limit market turbulence.  Someone tell that to the Fed governors.  (Additional FT color on the story is here.)

"Delay and Pray" versus "Kick the Can" - TrimTabs Money Blog | Nobody has quantified the problem in Spain.  That means that Spain, Italy, etc. will have to go bust because the final number, if not now known, will be too big for any country to fix.

Beyond indignation - Counterpunch | The present situation of Europe is such that it can only lead to further social and political polarization. That polarization, while the article doesn't necessarily explicitly state the reason, is due to simple economics.

Job recovery is scant for Americans in their prime working years - Washington Post | The measure of employment mentioned in the article accounts for the "missing workers" who have stopped looking for work and are not included in the unemployment rate.  Remember: the next time you hear any official U-3 rate mentioned, it doesn't included the millions of people who are no longer defined as an "unemployed person."  Imagine that: a definition can tell you that you're not unemployed...and the press believe it.

Lending to Eurozone private sector slows - Financial Times | In spite of the ECB's efforts to boost the supply of credit, big money still doesn't want to acquire corporate paper.  Translation: there is a lack of confidence in the region's economy.

Greek "aid" is really enhanced vendor financing and foreign bank bailouts - New York Times via Jesse's Cafe Americain | Refer to the chart from November of last year: Where Is the Bailout Going?  That non-Greek financials percentage at 40%?  I-Bank debtholders.

A new bill would make it harder to find out about federal contractors' dark-money donations - Mother Jones | Boy, this is JUST what we need: a political ploy to make it easier for corporations to peddle influence in the shadows.

Bill Black on the embedded examiners at JPMorgan - Naked Capitalism | Embedded examination did not work even in an era a quarter-century ago when examiners were considerably more willing to say "no" to banks.  Now, the problems are infinitely larger and more complex, and we have financial institutions that are allowed to run amok within the system.

Bracing for a Euro crash and creating a housing bubble: the Swiss truly are caught in a vice - Testosterone Pit | For all those who think that Europe will be fixed by year's end?  The President of the SNB is saying that their baseline scenario (!) anticipates a protracted period of great difficulties.

Photos from a "rewilding camp" - Boing Boing | If the predictions of many of the primitivists at Firefly are accurate, the imminent collapse of civilization will soon make these skills a matter of life or death for us all.