Archive for September, 2009

The Mortgage Machine Backfires

By Gretchen Morgenson

With the mortgage bust approaching Year Three, it is increasingly up to the nation’s courts to examine the dubious practices that guided the mania. A ruling that the Kansas Supreme Court issued last month has done precisely that, and it has significant implications for both the mortgage industry and troubled borrowers.

The opinion spotlights a crucial but obscure cog in the nation’s lending machinery: a privately owned loan tracking service known as the Mortgage Electronic Registration System. This registry, created in 1997 to improve profits and efficiency among lenders, eliminates the need to record changes in property ownership in local land records.

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Vaccine = Swine Flu X 2

By Patrick White

A “perplexing” Canadian study linking H1N1 to seasonal flu shots is throwing national influenza plans into disarray and testing public faith in the government agencies responsible for protecting the nation’s health.

Distributed for peer review last week, the study confounded infectious-disease experts in suggesting that people vaccinated against seasonal flu are twice as likely to catch swine flu.

The paper is under peer review, and lead researchers Danuta Skowronski of the British Columbia Centre for Disease Control and Gaston De Serres of Laval University must stay mum until it’s published.

Continue reading Study Prompts Provinces to Rethink Flu Plan

Asset Class of the Decade: Gold

by Adam Brochert

In the end as an investor, it’s all about the scoreboard. For those who aren’t traders, allocation to the correct asset classes is critical to long-term returns. Following are the returns for the S&P 500, the U.S. Dollar (using the Dollar Index as a proxy), Commodities (using the Continuous Commodity Index [$CCI] as a proxy) and Gold. These returns ignore dividends, yields, and expenses, which are important concepts over the long-term and make this a less than ideal comparison. You can plug in whatever figures you think are appropriate and make your own comparison(s) if you’re so inclined.

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G-20 in Pittsburgh

The leaders of the G-20 countries, which account for 85% of the world’s income, cannot meet in an American city without 12,000 cops outfitted like the emperor’s storm troopers in Star Wars. And the US government complains about Iran.

~ Paul Craig Roberts

The 10 Biggest SEC Settlements of the Last Year

By Erin Geiger Smith and Gayathri Vaidyanathan

The SEC alleged that Siemens had bribed officials operating metro transit lines in Venezuela, power plants in Israel, refineries in Mexico and mobile telephone networks in Bangladesh. Argentina, Vietnam, China and Iraq are other countries where Siemens allegedly made generous contributions.

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More on the story

Sibel Edmonds Interview

EDMONDS: Okay. So these conversations, between 1997 and 2001, had to do with a Central Asia operation that involved bin Laden. Not once did anybody use the word “al-Qaeda.” It was always “mujahideen,” always “bin Laden” and, in fact, not “bin Laden” but “bin Ladens” plural. There were several bin Ladens who were going on private jets to Azerbaijan and Tajikistan. The Turkish ambassador in Azerbaijan worked with them.

There were bin Ladens, with the help of Pakistanis or Saudis, under our management. Marc Grossman was leading it, 100 percent, bringing people from East Turkestan into Kyrgyzstan, from Kyrgyzstan to Azerbaijan, from Azerbaijan some of them were being channeled to Chechnya, some of them were being channeled to Bosnia. From Turkey, they were putting all these bin Ladens on NATO planes. People and weapons went one way, drugs came back.

GIRALDI: Was the U.S. government aware of this circular deal?

EDMONDS: 100 percent. A lot of the drugs were going to Belgium with NATO planes. After that, they went to the UK, and a lot came to the U.S. via military planes to distribution centers in Chicago and Paterson, New Jersey. Turkish diplomats who would never be searched were coming with suitcases of heroin.

Continue reading Who’s Afraid of Sibel Edmonds?

Gold Price Down, Gold Bugs Up

By Peter Brimelow

Looks like the gold bugs had reason to be wary when gold broke through $1000. But now it’s back down, they’re not particularly worried.

When I last looked, Australia’s “The Privateer” Web site was calling for a confirmation close around $1,015 on its magnificent long-term U.S. dollar 5-times-3 point and figure chart –

It got it. Then, however, although every chartist I follow was screaming, “Breakout!” gold churned for several days before slumping some $25.00 late last week. Spot gold closed Friday below $1,000 at $990.70.

Most shorter-term charts now have an ominous “head and shoulders” top appearance. Even The Privateer’s long term chart has slipped back into formation and looks sad.

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Obama’s Move: Iran and Afghanistan

By George Friedman

There are four permutations Obama might choose in response to the dual crisis. He could attack Iran and increase forces in Afghanistan, but he might well wind up stuck in a long-term war in Afghanistan. He could avoid that long-term war by withdrawing from Afghanistan and also ignore Iran’s program, but that would leave many regimes reliant on the United States for defense against Iran in the lurch. He could increase forces in Afghanistan and ignore Iran — probably yielding the worst of all possible outcomes, namely, a long-term Afghan war and an Iran with a nuclear program if not nuclear weapons.

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Quote du Jour

If this country is worth saving, it’s worth saving at a profit.

~ HL Hunt

Germany’s Merkel Set To Form New Coalition Government

We have reached our election goal,” said Merkel, who is about to start coalition talks with the business-friendly Free Democratic Party.

Together with the FDP, the CDU/CSU got 48.4% of the votes, enough to secure a new coalition government, preliminary official results showed Monday.

“The results ensure a stable majority,” Merkel said.

FDP leader Guido Westerwelle said they are “ready to take up responsibility and help govern Germany.”

Coalition talks will start next week at the latest, with key jobs at the economics and finance ministries up for grabs.

Westerwelle is expected to become vice chancellor and foreign minister. Karl-Theodor zu Guttenberg of the CSU is tipped to stay in his post as economics minister or may become finance minister.

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About: Angela Merkel

Related article: German Federal Election, 2009