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Global Economy Bursting?

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Ruh-Roh

BYD warning, Chinese carmaker partly owned by Warren Buffett’s


http://cnbusinessnews.com/byd-warning/

BYD Co, the Chinese carmaker partly owned by Warren Buffett’s Berkshire Hathaway Inc, yesterday said its full-year profit may drop by as much as 65 percent, dragged down by slowing sales of automobiles and solar-energy products.

California is not the solar demand that it once was. The low hanging fruit has been picked. Same for electric cars.
 
Expect Market Focus to Shift from Greece to Portugal, Spain, Italy

http://globaleconomicanalysis.blogs...lysis+(Mish's+Global+Economic+Trend+Analysis)

With news of a "voluntary" haircut on Greek bonds of 50%, it's time to look ahead to the next big trouble spots. By measure of 10-Year government bond yields, Portugal at 11.8%, Italy at 6.02%, and Spain at 5.51% (as compared to Germany at 2.18%), Portugal, Italy, and Spain clearly have critical issues.

Moreover, the economic data from Spain is continuously awful. For example Spain's Unemployment "Unexpectedly" Rises to 21.52%.
 
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Denver Police Move Into Occupy Protest Encampment

http://www.nytimes.com/aponline/2011/10/29/us/AP-US-Occupy-Denver.html?nl=todaysheadlines&emc=tha23

DENVER (AP) — The simmering tension near the Colorado Capitol escalated dramatically Saturday with more than a dozen arrests, reports of skirmishes between police and protesters and authorities firing rounds of pellets filled with pepper spray at supporters of the Occupy Wall Street movement.

Officers in riot gear moved into a park late in the day where protesters were attempting to establish an encampment, hauling off demonstrators just hours after a standoff at the Capitol steps degenerated into a fight that ended in a cloud of Mace and pepper spray.
 
Most important priority in California and the nation:

U.S. Supreme Court takes up treatment of pigs


http://www.latimes.com/news/nationworld/nation/la-na-court-pigs-20111030,0,4290983.story

Reporting from Washington— The Supreme Court has decided plenty of cases concerning cruelty, inhumane treatment and executions, but until now, none was about pigs.

The case of the "nonambulatory pigs" involves a dispute between California and the pork industry over how to handle pigs unwilling or unable to walk when they arrive at a slaughterhouse.

The issue, which the justices will take up next week, has already gotten the Obama administration in trouble with the Humane Society of the United States, which faulted government lawyers for joining the case on the side of the pork producers.

Under a 3-year-old California law, a slaughterhouse operator must immediately remove a "nonambulatory animal" from a herd and "humanely euthanize" it.

Federal law says animals that are lying down must be removed and inspected, but most need not be kept from the slaughterhouse.
 
How California Creates Jobs:

Payday lenders thrive in California


http://www.thereporter.com/news/ci_19227200

Facing government crackdowns around the country, payday lenders are thriving in lightly regulated California, where they lure hundreds of thousands of desperate borrowers a year despite punishing, triple-digit interest rates.

Seventeen states and the U.S. military have banned payday loans, often relied on by low-income borrowers who need a cash advance on paychecks. Georgia has declared payday lending to be felony racketeering. But in California, payday storefronts outnumber Starbucks coffeehouses.

Neon-splashed businesses touting slogans like "Cash as Easy as 1, 2, 3!" promise hassle-free, short-term loans, while few borrowers heed the fine print: A two-week loan will saddle them with what amounts to an annual interest rate of 460 percent.

Now, the multibillion-dollar industry is looking for more help from a state Legislature that has protected payday lenders for years.
 
I just drove back from Disney World, drove 700 miles today, where I spent a week with the grand kids. Let me tell you there is no depression in the Magic Kingdom. The place is smoking. Droves of people from all over th world.
Italians, Spaniards, Japanese, and all places in between. Most people not speaking English. All announcements are in English and Spanish and some rides have a screen where you can chose the language. They are there in droves. The unemployment rate may be 20% but the 80% who are working are making out like a fat rat. There is a whole new world order emerging. Those people seem to be as much at home here as in their own country. Something on the order of international zones for people making it. Nothing is free. Where have I heard this before? Ever read "Atlas Shrugged?" That is where all the producers in the world moved to when progressive society collapsed. A hidden zone where everyone pays his or her way and nothing is free. Just like the Magic Kingdom.
 
In the book "Commanding Heights" - Daniel Yergin explores the big picture of the economy of the world. He made a compelling case that people grew tired of the capitalists who seemed powerless in the 1930s to help the economy and it was only war that pumped up the economy under a very tight state control. In Britan during the critical Potsdam conference, Churchill was recalled to what he thought would be easy reelection. Instead, his government was ousted and replaced by a socialist, one that actually admired the central planning of Stalin. Keep in mind that prior to his death when his crimes were exposed by his successors, "Uncle Joe" was not viewed as a mass murderer of the equal of Hitler himself.

The Brits lived under socialism for 30 some years until the state run system broke down under its own weight. Margaret Thatcher fought the unionists and restored some semblence of capitalism in England but not before the majority of the British Empire dissolved before their eyes.

Today, we trod that same path. People are fed up with the "fat cats" who seem powerless to generate jobs and they now expect governments to step in, create jobs out of thin air and run a socialized economy. Obama's health plan is written right out of the post-war playbook of the British Labour Party whose first act was to create the National Health system.

The pendelum will swing towards socialism and in 3 decades or so, we'll see the error of our way and it will swing back.

The Solar push is misguided and is basically an effort of government to create energy out of whole cloth. The market cannot support it under its own weight. Germany is touted as the glorious land where there will be no nuclear energy and all will be generated by windmills, solar panels, and ....Russian natural gas. hmm. They will still buy nuke energy from France. And the reliable Russians cut off gas only a couple of years ago... yeah, great.

But Germany is having problems with their solar subsidies and simply are not getting a big bang for the bucks...lotsa a bucks right out of the consumer pocket. http://www.newscientist.com/article/mg20827842.800-solar-power-could-crash-germanys-grid.html
https://www.phoenix.edu/colleges_di...f-the-german-alternative-energy-business.html
http://www.guardian.co.uk/environment/georgemonbiot/2010/mar/11/solar-power-germany-feed-in-tariff
 
Yen Tumbles 4% as Japan Intervenes to Sell Currency Third Time This Year

I wonder if this will cause an unwinding of our fabulous gains? Commodities will be hit. I wonder if they will bust out with the Rule 48 in case it gets worse fast? Just my POV.

http://www.bloomberg.com/news/2011-...es-to-sell-currency-third-time-this-year.html

Based on Friday and overnight Sunday, it looks like I'll be short @ the open. (very low volume heading into the open, longs be careful)
 
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HARNESSING the sun's energy could save the planet from climate change, an approach that Germany has readily adopted.


But Germany is having problems with their solar subsidies and simply are not getting a big bang for the bucks...lotsa a bucks right out of the consumer pocket. http://www.newscientist.com/article/mg20827842.800-solar-power-could-crash-germanys-grid.html
https://www.phoenix.edu/colleges_di...f-the-german-alternative-energy-business.html
http://www.guardian.co.uk/environment/georgemonbiot/2010/mar/11/solar-power-germany-feed-in-tariff

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You Cannot Have It Both Ways

http://talkingabouttheweather.wordpress.com/2011/10/29/you-cannot-have-it-both-ways/

I spent 25 years of my life worried about global warming. And one of the best proofs that the scientists and the media both had to keep me convinced was warmer winters, with less snow. Al Gore talked about it. Robert F. Kennedy Jr. wrote about it. Dozens of scientists published papers showing that winters were getting warmer, with less snow.

Well, in the midst of this kind of certainty about warmer winters, with less snow, some scientists, among them a Russian named Habibullo Abdussamatov, dared to question the idea that warmer winters, with less snow, were caused by carbon dioxide in the first place and also questioned whether Earth would continue to warm during the next few decades.

Abdussamatov and the rest of the skeptical scientists were widely ridiculed, even condemned. Corrupt, sub-human, blind, people called them. And worse.

They were none of these things.

Then, a funny thing started happening a couple of autumns ago. First, significant early-season snow events began to materialize during fall. Second, winters in the Northern Hemisphere started to show characteristics of the winters that Al Gore and RFK Jr. said they missed so much.

But now, in our era of terror of weather, the return to colder winters, with more snow, has been twisted by the same people who missed the colder winters, with more snow, of their youth. These new cold winters, with more snow, were not evidence of natural climate cycles, they said. The snow was, in fact, caused by global warming. This is what they said. And I have to believe that it is what they meant.

But it cannot continue. The science claiming that the unfolding transition to colder winters, with more snow, is proof of global warming is bad science. And turning an entire generation of people into nature-fearers is a grave sin.

The ocean-atmosphere system did not use to sit in benevolent stasis. Sea level did not use to remain ever stable. Droughts are not a product of modernity, and they are not increasing in number. And early-season snowstorms like the one unfolding in the Northeast were never proof of global warming. Not when they happened in the past, and not now.

To Mr. Gore, and his still passionate supporters, I say this: You cannot have it both ways. You cannot count the absence of snow as proof of your theories and the presence of snow as the proof of your theories.

We’re smarter than that. And you’re going have to do better, if you wish to win this debate.
 
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