{"id":198098,"date":"2007-12-13T22:27:00","date_gmt":"2007-12-14T03:27:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2007\/12\/13\/your-daily-economic-update\/"},"modified":"2007-12-13T22:27:00","modified_gmt":"2007-12-14T03:27:00","slug":"your-daily-economic-update","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2007\/12\/13\/your-daily-economic-update\/","title":{"rendered":"Your Daily Economic Update"},"content":{"rendered":"<p>First, you have calculated risk <a href=\"http:\/\/calculatedrisk.blogspot.com\/2007\/12\/discount-rate-spread-increases.html\">reporting that the discount rate spread has jumped to near record levels<\/a>:<br \/><a href=\"http:\/\/img522.imageshack.us\/img522\/8220\/a2p2spreadyg5.gif\"><img decoding=\"async\" style=\"cursor: pointer; width: 400px;\" src=\"http:\/\/img522.imageshack.us\/img522\/8220\/a2p2spreadyg5.gif\" alt=\"\" border=\"0\" \/><\/a><br \/>This is the spread between high and low quality short term (30 days) <a href=\"http:\/\/www.richmondfed.org\/publications\/economic_research\/instruments_of_the_money_market\/ch09.cfm\">commercial paper<\/a>.  Even the bad stuff is supposed to be pretty much a sure thing, and the spread between the two is big, indicating a very high fear level.<\/p>\n<p>It&#8217;s worse than when the big sh$@pile started to collapse in August.<\/p>\n<p>It&#8217;s worse than when the Twin Towers <span style=\"font-weight: bold;\">DID<\/span> collapse on 911.<\/p>\n<p>People are scared, and getting people <span style=\"font-weight: bold;\">UN<\/span>scared will be a <span style=\"font-weight: bold;\">very<\/span> difficult thing.<\/p>\n<p>Then there is the fact that the <a href=\"http:\/\/money.cnn.com\/2007\/12\/13\/news\/economy\/ppi\/index.htm?postversion=2007121312\">Producer Price Index took the biggest one-month jump in 34 years<\/a>, 3.2% in a month, or <span style=\"font-weight:bold;\">45% a year<\/span>.<\/p>\n<p>The economists will tell you to look at the core rate, but I live in a non core world, as do you.<\/p>\n<p><a href=\"http:\/\/www.orlandosentinel.com\/orl-run1207dec12,0,6505853.story\">Florida says $9B can&#8217;t be pulled from fund &#8212; OrlandoSentinel.com<\/a><\/p>\n<p>Remember when <a href=\"http:\/\/40yrs.blogspot.com\/2007\/12\/florida-pension-investments-in-big-sh.html\">I wrote<\/a> about a Florida money market fund for local governments that froze its accounts because of a run on the account due to its investments in the big sh#$pile?<\/p>\n<p>They are <a href=\"http:\/\/www.orlandosentinel.com\/orl-run1207dec12,0,6505853.story\">finally releasing some funds to the local governments<\/a>, <span style=\"font-weight:bold;\">but only &frac14; of what was deposited<\/span>.<\/p>\n<p><a href=\"http:\/\/money.cnn.com\/news\/newsfeeds\/articles\/djf500\/200712121344DOWJONESDJONLINE000839_FORTUNE5.htm\">Citigroup to lay off as many as 32,000 employees<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>First, you have calculated risk reporting that the discount rate spread has jumped to near record levels:This is the spread between high and low quality short term (30 days) commercial paper. Even the bad stuff is supposed to be pretty much a sure thing, and the spread between the two is big, indicating a very &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1261,973],"tags":[],"class_list":["post-198098","post","type-post","status-publish","format-standard","hentry","category-bubble","category-economy"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/198098"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=198098"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/198098\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=198098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=198098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=198098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}