Newsworthy Snips

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CHICAGO NEXT

“According to the Chicago Sun Times citing year-end audits, Obama’s former right hand man, Rahm Emanuel, closed the books on 2012 with $33.4 million in unallocated cash on hand — down from $167 million the year before — while adding to the mountain of debt piled on Chicago taxpayers. In addition to a liquidity problem, Chicago may also be quite insolvent as the city’s total long-term debt soared to nearly $29 billion.”

http://www.zerohedge.com/news/2013-07-28/chicago-next-windy-city-cash-balance-plummets-only-33-million-debt-triples

CYPRUS TAXES 47.5% OF ALL DEPOSITS >100K

“Cyprus and its international lenders have agreed to convert 47.5 percent of deposits exceeding 100,000 euros in Bank of Cyprus to equity to recapitalize it”

http://ca.news.yahoo.com/cyprus-lenders-set-bank-cyprus-104408907.htmlM

>> I find it hard to be bullish EUR with their bail in rules !

INDIAN DEFAULT

“(Reuters) – India’s Lanco Infratech Ltd (LAIN.NS) has started a process to restructure debts totaling 75 billion rupees ($1.3 billion) after economic weakness impacted the performance of some of its businesses such as power and engineering and construction.

If the process is approved by its lenders, Lanco would be the second debt-laden company to go for a major loan restructuring within nine months, after lenders to wind turbine maker Suzlon Energy (SUZL.NS) in November agreed to restructure about 110 billion rupees of its debt.”

>> Note than Lanco had acquired Griffin Coal in 2011 which is supposed to be standalone from the restructuring efforts, if approved.

US GDP ACCOUNTING CHANGES

“Wednesday when the Commerce Department releases decades of revised data that will include R&D as a category of investment. Under the new framework, R&D added about $300 billion to GDP in 2010.”

>> creative accounting as chicken soup to the soul ! Buy S&P 500, you have no choice.
NEW DRUG RESISTANT SUPER BUG FOUND IN CHINESE PIGS
“…widespread use by some farmers of antibiotics to keep their pigs healthy,” Ho Pak-leung said. “This is one explanation as to why [the Sheung Shui] pork contains the drug-resistant bug.”
>> means if we eat it and we do not die, we will be more powerful than the superbug !
S&P : House Prices Are Still Falling In Most European Markets As Recession Bites
>> SEND IN THE ASIAN BUYERS !!
SINGAPORE OPENS SILVER VAULT AND….
July 29 (Bloomberg) — Hedge funds raised wagers on a gold
rally as speculation that the Federal Reserve will hold off on
curbing stimulus drove prices toward the biggest gain in 18
months. Goldman Sachs Group Inc. expects the rally to reverse.
Storage is an issue.
“Some fear that in the event of a systemic crisis then there could be enforced bank closures or extended bank holidays. In this scenario, deposit boxes in banks and financial institutions could be sealed and the bullion confiscated. Under the Gold Confiscation Act of 1933 at the height of the Great Depression, Roosevelt ordered all gold be handed to the authorities at $20.67/oz (prior to revaluing gold from $20.67/oz to $35/oz). It is possible that in the event of such a crisis many pool accounts, digital gold providers and depositories in the UK and the US might have their gold confiscated and might have their assets nationalized.” Source : https://news.goldcore.com/research/storing_bullion_internationally#.UfPg5kRhDpg.twitter
Category : Market, Op-Eds