Tuesday August 4 Housing and Economic stories

TOP STORIES:

Moody’s Says Low Oil Price Here to Stay as Russia Bleeds Capital - (www.bloomberg.com) Low oil prices are just the tip of what ails Russia, according to Moody’s Investors Service. With its dependence on commodities and a slump in investment, Russia will have a hard time recovering from its record economic slump as global oil prices are bound toremain lower for a long time, Yves Lemay, managing director in the sovereign risk group at Moody’s in London, said in an interview on Wednesday. As much as a quarter of Russia’s gross domestic product and two-thirds of its exports are linked to the energy industry, according to the rating company. “Our assessment is that low oil prices are here to stay,” Lemay said. “Without major investment in the infrastructure, modernizing the equipment, oil production in Russia is unlikely to rise and may slowly decline in the coming years.”

Greece Extends Market Shutdown to Fifth Week as Traders Trapped - (www.bloomberg.com) A decision on when and under what conditions Greek financial markets will reopen was deferred to next week. That leaves them shut at least through Monday, a government official told reporters on Thursday, asking not to be named in line with policy. The Athens Stock Exchange, multilateral trading facility and electronic secondary market for bonds have been closed since June 29, when the government issued a decree imposing capital controls and a forced bank holiday. Greek officials setting the ground rules for a reopening of the Athens exchange need todecide whether to exempt investors from capital controls and risk more money heading for the exit, or safeguard scarce liquidity and get further isolated from global markets. MSCI Inc. is considering a downgrade of the country and FTSE will decide whether to keep Greek securities its its global indexes on Friday.

4 Things That Are Happening Today That Indicate That A Deflationary Financial Collapse Is Imminent - (www.infowars.com) When financial markets crash, they do not do so in a vacuum.  There are always patterns, signs and indicators that tell us that something is about to happen.  In this article, I am going to share with you four patterns that are happening right now that also happened just prior to the great financial crisis of 2008.  These four signs are very strong evidence that a deflationary financial collapse is right around the corner.  Instead of the hyperinflationary crisis that so many have warned about, what we are about to experience is a collapse in asset prices, a massive credit crunch and a brief period of absolutely crippling deflation.  The response by national governments and global central banks to this horrific financial crisis will cause tremendous inflation down the road, but that comes later.  What comes first is a crisis that will initially look a lot like 2008, but will ultimately prove to be much worse.  The following are 4 things that are happening right now that indicate that a deflationary financial collapse is imminent…

Regulators could be responsible for next financial crash - (www.telegraph.co.uk)  Tighter bank regulation may end up destabilising financial markets and trigger a larger crisis than the 2008 crash, a report has warned. Researchers at the Systemic Risk Centre (SRC) at the London School of Economics said that regulation forcing banks to take the same approach to risk may end up making financial markets less safe. Financial institutions have been made to adopt the same models to forecast risk, which the report’s authors said relied on the false belief “that there is one knowable and correct model” to foresee the future. The report said: “If the authorities pick one modelling approach over another, they may just as easily be backing the wrong horse, a model that is less accurate.”

Jerry Brown hops private plane to Rome to discuss Climate Change - (www.sacbee.com) Gov. Jerry Brown arrived in Rome for climate talks this week with the smallest of entourages – three – and the most comfortable of accommodations. Brown, who typically flies Southwest Airlines in California, flew to Italy with real estate developer George Marcus and his wife, Judy, in their private plane. Brown is combining his trip to a conference here with a vacation with those friends. Brown has also found a free place to bunk, at the residence of John Phillips, the U.S. ambassador to Italy. Both Marcus and Phillips, a former Los Angeles and Washington, D.C., lawyer, have contributed to Brown’s campaigns. When the Democratic governor traveled to Mexico last year, he was accompanied by roughly 90 people with business ties. The fees they paid subsidized Brown’s expenses. A trip to China the previous year was of similar size and included a similar funding arrangement.

OTHER STORIES:

Oil Warning: The Crash Could Be Worst in More Than 45 Years - (www.bloomberg.com)
Distressed-Debt Market Upended Amid Deepening Commodities Rout - (www.bloomberg.com)
Beijing's stock rescue has $800 billion bark, small market bite - (www.reuters.com)
Giant Hedge Fund Bridgewater Flips View on China: ‘No Safe Places to Invest’ - (online.wsj.com)
Why Investors Shy Away From China’s $6.4 Trillion Bond Market - (online.wsj.com)

China Auto Market in ‘Downward Spiral,’ Japan Group Says - (www.bloomberg.com)
Japan’s Debt Risks Surge to Triple GDP Without Change, IMF Says - (www.bloomberg.com)
Levy Faces Hard Reality After Brazil’s Recession Erodes Savings - (www.bloomberg.com)
China says Japan's East China Sea pictures provoke confrontation - (www.reuters.com)