Friday, August 5, 2011

Barack Obama - #3138 - Obama and the Looming Financial Crisis -American Thinker (2) "Total Fear" - Dow Drops 512 Points - Hot Air (3) Lisa Jackson is Using EPA to Destroy the Coal Industry - Redstate

A global financial crisis is becoming more likely, as American political and media elites bury their heads in the sand. The presumptive leader of the world economy is not even leading from behind. The members of Congress and President Obama, having exhaled a sigh of relief over extending the debt ceiling, are tripping over themselves in the mad rush to get out of Washington before the relentless heat, often mixed with overbearing humidity, sets in. However the world and U.S. economy and markets are in the throes of a summer of discontent with a real possiIn the past the world could look to the United States for leadership and financial stability. Unfortunately that option is no longer available. bility of genuine global panic in the fall. In Europe, equities are down for the year, investors are fleeing European bank shares (as their exposure to the debts of Greece and other debtor nations becomes more precarious), bond spreads are widening on Spanish, Italian, and now French debt (which relative to Germany, has doubled in a month). There is now a silent run on the banks in Greece, and Spain cannot pass and sustain a viable austerity program, and France, similar to the United States, has been slow to cut a chronic budget deficit. The latest Eurozone rescue package was far too small as a solution to calm spirits for more than a matter of days and the scale of the overall dilemma grows by the day........ The current occupant of the White House hasn't a clue, except to find a way to win reelection through obfuscation and class warfare, while promoting his fiscally disastrous policies. The Federal Reserve, having essentially printed trillions of dollars to no avail, is out of options except to reprise the same policy, thereby exacerbating an already precarious situation.  Read more.........

Total Fear - Dow Drops 512 Points - Hot Air - ......U.S. markets were already sharply lower on widespread worries, including the weak job market. But the selling gained momentum as Japanese and European policymakers stepped in with dramatic measures to shore up their financial markets. There’s “total fear” in the market, said Bob Doll, chief equity strategist at the world’s largest money manager, BlackRock. All three major indexes tumbled more than 4% Thursday and erased all their gains for the year. The indexes have also pushed into ‘correction’ territory – defined as a 10% drop from their highs earlier this year. Over the past 10 days alone, the Dow, S&P 500 and Nasdaq have dropped about 8%........In fact, the debt deal came to fruition at exactly the same time as a series of devastating economic reports that indicate we will be lucky if the current moment is only a “slowdown” and not the beginning of—maybe even the middle of—a double-dip recession. You don’t need an economics degree to see the disaster in these numbers. Lower consumer confidence means less consumer spending, which means less demand, which means less economic activity, which means no improvement in employment figures and very possibly a worsening of unemployment. What we are seeing on Wall Street this week is that a coming recession is being “priced in.”  Read more........

Lisa Jackson is Using EPA to Destroy the Coal Industry - Redstate - I reported recently on EPA rules that ran the risk of causing shut downs of plants in Texas and elsewhere. But that was before the massive heatwave began putting the real strain on them. So much so that they are almost at full capacity. And unfortunately, the EPA is only tightening it’s grip.Via Wall Street Journal:  The agency is now tightening nearly every eco-regulation in existence, abusing in particular traditional air pollutant laws to shut down coal-fired power plants. This cluster of overlapping rules will cause far more cumulative damage than merely one or another rule would by itself. A utility, for instance, might be able to comply with a single new rule, but under the EPA firehose it might be forced to retire some of its operations. Beyond the direct costs to the utility, plant closures would lead to job losses and higher prices for consumers and business, with their own knock-on effects.  Read more.........

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