Bloomberg: Fund Manager Paul Singer Says Economy Fake & Deep Crash Coming

 

Paul Singer’s Elliott Management Corp. said optimism on U.S. growth is misguided as economic data understate inflation and overstate growth, and central bank policies of the past six years aren’t sustainable.

The market turmoil in the first half of October may be a “coming attractions” for the next real crash that could turn into a “deep financial crisis” if investors lose confidence in the effectiveness of monetary stimulus, Elliott wrote in a third-quarter letter to investors, a copy of which was obtained by Bloomberg News.

“Nobody can predict how long governments can get away with fake growth, fake money, fake jobs, fake financial stability, fake inflation numbers and fake income growth,” New York-based Elliott wrote. “When confidence is lost, that loss can be severe, sudden and simultaneous across a number of markets and sectors.”

Please read more in Bloomberg.

They're Bulldozing a Fifth of Detroit

Detroit’s Lafayette building - demolished in 2009

 

Bad news for fans of ruin porn: Detroit is hoping to rid itself of its unique collection of dilapidated buildings and elegantly rubbish-strewn abandoned lots, and all within the next five years.

In May, a group ominously titled the “Detroit Blight Removal Task Force” released a report claiming that around 22 per cent of the city’s properties were “blighted” – vacant, damaged or considered dangerous. They also found that, of the 84,000 properties owned by public entities, just over 5,000 were occupied by squatters, making the city of Detroit, the report’s authors noted, “a very large and inadvertent landlord”.

The task force’s proposed solution is to demolish it all over the next five years and start again. Unfortunately, the plan doesn’t extend to rebuilding the properties – it’ll be down to private companies and developers to buy up the land and rebuild.

Please read more here.

50% Of Detroit Residents Can't Pay Water Bills & United Nations Called In To Help

 

 

DETROIT (WWJ) – It’s a basic human right: water. But could the United Nations soon help the Detroit Water and Sewerage Department provide the service to struggling customers?

Water department spokeswoman Curtrise Garner says it’s a possibility — but for now, the water bills must be paid.

“We do have programs that do help those that are just totally in need; can’t afford it — but we also know that there are also people who can’t afford it would can not pay and we know this because, once we shut water off, the next day they are in paying the bill in full. So we do know that that has become a habit as well,” said Garner.

“At the DWAS Department — it’s not our goal to shut off water. We want people’s water on, just like they do; but you do have to pay for your water…That’s the bottom line.”

Garner said the reality is that nearly half of Detroit Water and Sewerage customers can’t pay their bills; and that has led activists to lobby the UN to step up and take action.

Please read more here.

Washington Post: U.S. Businesses Destroyed Faster Than Created

 

The American economy is less entrepreneurial now than at any point in the last three decades. That's the conclusion of a new study out from the Brookings Institution, which looks at the rates of new business creation and destruction since 1978.

Not only that, but during the most recent three years of the study -- 2009, 2010 and 2011 -- businesses were collapsing faster than they were being formed, a first. Overall, new businesses creation (measured as the share of all businesses less than one year old) declined by about half from 1978 to 2011.

The authors don't mince words about the stakes here: If the decline persists, "it implies a continuation of slow growth for the indefinite future." This lack of economic dynamism, particularly the steep drop since 2006, may be one reason why our current recovery has felt like much less than a recovery. As Matt O'Brien noted on Wonkblog last week, annual job growth rates have stubbornly refused to budge above 2 percent for the duration of the recovery.

Yay! Way to go America! smh

Please read more here.

Truthout: Detroit Should Become Part of Ukraine to Get US Aid It Needs to Survive

Detroit is a bankrupt American city in the state of Michigan.   Should Detroit annex itself to the Ukraine to receive US financial aid?

 

Biting satire, as The Daily Show and The Colbert Report so uproariously reveal, is often closer to the heart of reality than the "packaged reality" it mercilessly skews. 

In the BuzzFlash at Truthout e-mail this weekend, we received our weekly quips from Howard Albrecht, an octogenarian comic writer who staffed many of the top shows of the golden age of comedy during the '50s and '60s.  Retired now, Albrecht's audience is his list serve.  This Saturday, his package of one-liners included this one: "To help stabilize the region, the US is giving a billion dollars to Ukraine. In an effort to uplift their city, Detroit just declared war on Russia."

Please read more here.

Business Insider: Miami Is Wall Street South

Miami is attracting the LeBron James of Wall Street, the Dwyane Wade of Greenwich equity, and the Chris Bosh of Boston — financial titans who are relocating to pay less in taxes and maintain a luxury lifestyle with a glittering social scene. 

 

It's already the 2nd most popular financial hub in the country after NYC, and The Miami Downtown Development Authority is doing everything it can to make itself attractive to bankers through an initiative called the DWNTWN campaign.

Lloyd Blankfein and Leon Black are rumored to have bought Miami condos recently, and the latest hotshot to move his business there is Mark Spitznagel, founder of hedge fund Universa Investments.

“Florida’s business-friendly policies ... offer the perfect environment for us as we expand,” said Spitznagel. “I would expect to see more firms like Universa voting with their feet and relocating to a more hospitable business and tax environment, especially as many local governments are trying to tighten their grip on businesses.”

The nightlife and beaches don't hurt either.


Now you see. We don't just fool around in Miami Beach. We handle our business too. LOL!

Economist Kotlikoff: "US Hides Real Debt, In Worse Shape Than Greece"