Climate Foibles

Finally SCOTUS gets a decision right. They blocked the EPA carbon rules from being enforced while litigation is being pursued.

Supreme Court blocks Obama carbon emissions plan

The U.S. Supreme Court on Tuesday delivered a major blow to President Barack Obama by blocking federal regulations to curb carbon dioxide emissions from power plants, the centerpiece of his administration’s strategy to combat climate change.

On a 5-4 vote, the court granted a request made by 27 states and various companies and business groups to block the administration’s Clean Power Plan. The move means the regulations will not be in effect while litigation continues over whether their legality.

The brief order from the justices said that the regulations would be on hold until the legal challenge is completed. The court’s five conservatives all voted to block the rule. The order noted that the four liberals would have denied the application.

A U.S. appeals court in Washington had turned away a similar request on Jan. 21.

The states, led by coal producer West Virginia and oil producer Texas, and several major business groups in October launched the legal challenges seeking to block the Obama administration’s plan.

More than a dozen other states and the National League of Cities, which represents more than 19,000 U.S. cities, filed court papers backing the Environmental Protection Agency’s rule. [snip]

Hope n’ Change

Old Dog, New Hampshire

Old Dog, New Hampshire 1

Hoping (unsuccessfully) to minimize Bernie Sanders’ landslide win over Hillary in the New Hampshire primary, former president and occasional rapist Bill Clinton recently went on the attack to accuse the Bernie Sanders campaign of sexism. No, really.

Apparently unaware that he was dressed as a lesbian, the withered and rasping Clinton evinced horror at the notion that women – a sex which he respects almost as much as a good cigar – were being berated online for their support of Hillary. According to Bill, the women have been subjected to “vicious trolling” by Bernie’s supporters and “attacks that are literally too profane, not to mention sexist, to repeat.”

We therefore assume that Hillary’s supporters weren’t called liars, bimbos, national security risks, stalkers, or trailer park trash, because those are all acceptable terms of endearment that Bill and Hillary have previously used to describe gyno-Americans who found themselves on the wrong side of Mrs. Clinton’s political agenda. So Bernie’s people must have been writing some really vile stuff – perhaps with a dash of Yiddish added, just for color. [snip]

Day by Day


Collectivist Banking

As Yogi once said, “It’s déjà vu all over again.” Maybe not with real estate as it was in 2008, but with loans in the commodity markets, that can be a different story.

Banks, Crude Oil, Mark-To-Market, The Federal Reserve And Yes, Real Estate!

[snip] Ask yourself…

  • What if, as happened in 2008, the economy of the United States and the world is pushed into recession and banks become either unable or more unwilling than they already are to make loans?
  • What happens if, due to the fears of some banks that other banks they do business with may not be able to repay short-term interbank loans, that the credit markets seize as they did during the 2008 financial crisis (keep an eye on the TED spread)?
  • What happens to the real estate industry if, for any number of reasons, foreign buyers who typically are all-cash investors cease to invest?
  • And what happens is consumer confidence in the stability of their jobs, income and future prospects are hit to the point that the purchase of a home is moved way back onto the back-burner?

The answers to all of the questions above?

Banks, Crude Oil and Mark-To-Market!

Yesterday in an article at the Hallmark Abstract Service blog the significant underperformance of bank stocks when compared to the overall market was examined…Oil Industry Exposure: Are Bank Stocks Telling A Story That Investors Should Be Listening To?

‘…As we have watched the price of a barrel of crude oil crash to the low $30 range, it makes one wonder if a banking crisis similar to the one brought on by the mortgage crisis that pre-dated the financial crisis is even possible and, if it is, whether it might be lurking in the wings.

Many banks hold significant exposure to the energy sector and how that exposure is being handled, or not handled, may hold some clues to whether there may be a shoe to drop in the future….’

In December 2014 from the same blog the potential impact of falling crude oil prices and bank exposure to derivatives was discussed..Is there a downside to plunging oil prices?

‘Derivatives… – These are complex financial instruments created in the ‘lab’ by quants from schools like MIT, that exist as a contract between two parties over the price moves of some financial instrument or commodity and that can serve either as a hedge or a bet.

When prices of that instrument are stable or move within reasonable boundaries there are no great issues but, when severe and quick price moves occur such as we have recently experienced in the crude oil market (or mortgage-backed securities in 2007-2008), problems stemming from counterparty risk can present themselves.

Counterparty risk is defined as , ‘The risk to each party of a contract that the counterparty will not live up to its contractual obligations. Counterparty risk as a risk to both parties and should be considered when evaluating a contract.’ (Source) [snip]

So if derivatives are a zero sum-game meaning that what one side of the transaction makes the other side will lose, crude oil taking a $40 plunge means that there are some huge losses on the books out there.

We just don’t know whose!

One day these losses will likely have to be realized with unknown financial or ‘unintended’ consequences occurring as a result.

And what will occur if the losing side of a transaction, possibly some of the ‘Too Big To Fail’ institutions, had to actually recognize these trades on their books using mark-to-market?…’

And finally, from a January 2016 article at Zero Hedge, a look at the potential wink and a nod given by the Federal Reserve to banks concerning a moratorium from marking oil industry loans to market. In other words if a loan should be valued at $.50 on the dollar the bank can continue to recognize it on its books at $1.00.

The significance? Solvency! [snip]

In addition to the potentially bad loans on the books, the Fed stuffed money into the market by issuing bonds, selling them and putting that money into the Wall Street banks. They lent that money out to…the oil companies for fracking and new wells. Very profitable with oil at $90 to $110 a bbl. those loans aren’t performing well now with oil at $28 to $31/bbl. Gold and silver is down so the mining operations have ceased, laying off workers just as the oil patch has.

The tech stocks are selling off because they too are over-inflated from the Fed pumping in money. The correction probably will turn into a recession due to the Fed having no means of taking any preventive action.

With the National Debt now over $19 trillion and the clown in the White House sending a budget wanting $2.4 trillion more spending over ten years, what might be called a rough patch could well tear the seat out of your pants.

The Hair Obsession

FoolWhat ever it is in the vanity gene that drives men, young men, the Millennials to be so obsessed with their cranial follicles, it has to consume an inordinate amount of their time. From Rogaine applications to the dome to those with a full dark mane which now has to tinted/streaked gray producing a faux maturity, there is a psychotic fixation with the top mop.

Millennials dying hair gray as part of new fashion trend

From man buns to lumberjack beards and normcore, the trend clock never stops.

Keeping with that theme, it appears young men are now opting to turn that clock forward, embracing the gray.

Millennials are dying their hair silver for a more mature look.

The trend – which is highly disputed on social media – was recently given a boost in validity by the New York Times, where the publication referred to two big names who recently went gray – Zayne Malik formerly of “One Direction” and Olympic Freestyle skier Gus Kenworthy both rocking gray hair.

The job – which will cost you between $300-$600 depending on where you go – involves stripping the natural hair color and then adding some silver tones.

If you wonder why the Millennials have $1000 or less in savings, no homes, cars or live in Mom’s basement, here’s the answer.
They seem to squander money on something that will grow out in a matter of two to three weeks and have to be redone.
Vain idiots.

Hillary Sez,


Coming to America

Obama Said, “You will come to Love Islam.”
A load of rapists


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