Distress for La. sweet potatoes

Mention of distress for Louisiana sweet potatoes....

Southern lawmakers seek emergency aid for farmers - AP
By BECKY BOHRER (AP) – 2 hours ago

NEW ORLEANS — Some Southern lawmakers are seeking billions of dollars in emergency aid for farmers after recent natural disaster declarations in at least 20 states.

A farm disaster program authorized by Congress last year still isn't fully in place, and even if it was, some lawmakers say its design could keep many farmers with losses this year waiting for help until January 2011. The U.S. Department of Agriculture's disaster declarations allow farmers affected by weather ranging from hail to volcanic emissions to seek low-interest loans or other assistance, but some debt-laden farmers say the last thing they need is another loan.

In Louisiana and Mississippi, early season drought and late-season rains compounded the losses many growers suffered due to the 2008 hurricanes. Lawmakers from Mississippi and Arkansas are helping lead a push for at least $2.1 billion in emergency farm aid and hope to gain approval by year's end from a Congress that has been focused on other spending packages and the health care debate.

"I believe we have a good argument for providing direct payments to farmers whose crops have been ruined this year by floods, drought and other disaster conditions," said Sen. Thad Cochran, R-Miss.

Ted McDermott is grateful for the effort, but questions whether it will help him much. The northeast Louisiana sweet potato grower said he filed for bankruptcy after last year's storms left him with rotten potatoes, fields too wet to harvest and loans he couldn't pay off. He managed to plant 100 acres this year but the seemingly unrelenting rains in September and October left him with more rotted potatoes and the prospect of having to leave the state to find work.

"I think my business is done," said the 41-year-old from Oak Grove, who is still waiting for money from a grant and loan program the state set up with federal money after hurricanes Gustav and Ike.

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5 reasons Roubini thinks gold will stay down - Marketwatch

5 reasons Roubini thinks gold will stay down - Marketwatch

Nouriel Roubini recently published a report (pdf) claiming that gold is now in a bubble and at significant risk of a major correction (an opinion I had when gold was 10% higher and continue to maintain). He says the bubble is being driven by 5 primary factors:

* Inflation concerns are driving up gold prices as monetary policy exacerbates fears over the dollar.

* A “massive wall of liquidity” is chasing asset prices.

* The carry trade and diversification out of the USD.

* Global supply of gold can’t keep pace with rising demand.

* Sovereign risk is again on the rise.

While these powerful trends are widely considered to continue in 2010 (and help boost gold prices further), Roubini is less optimistic. He sees 5 substantial risks that will keep gold from reaching the $2,000 price target many analysts (see the bullish outlook for gold here) and goldbugs have attached to the yellow metal:

* An unwind in the carry trade would be devastating for gold and the reflation trade.

* Central banks will be forced to implement an exit strategy soon.

* Any bout of economic weakness will send investors fleeing into dollars.

* Investors are chasing performance and causing a bubble in gold. All bubbles crash and this bubble in gold will be no different.

* Fifth, the effect of rising sovereign risk on gold prices is ambiguous, as the events of recent weeks suggest.

Roubini concludes that gold bugs are “wrong” to assume the price surge will continue. He says gold has no intrinsic value and is therefore not rising on fundamentals. Investors should be wary of chasing the yellow metal at this point.

Source: www.roubini.com