Tuesday, June 30, 2009
IMF Global Financial Stability Report -- Responding to the Financial Crisis and Measuring Systemic Risks -- April 2009 -- Contents
IMF Global Financial Stability Report -- Responding to the Financial Crisis and Measuring Systemic Risks -- April 2009 -- Contents: "Global Financial Stability Report Responding to the Financial Crisis and Measuring Systemic Risks"
IMF: Toxic asset fallout could reach $4 trillion - Apr. 21, 2009
IMF: Toxic asset fallout could reach $4 trillion - Apr. 21, 2009: "Global Financial Stability Report"
Boom days are over in Las Vegas | Business | guardian.co.uk
Boom days are over in Las Vegas | Business | guardian.co.uk
Bursting skywards in the middle of America's gambling capital, seven glittering towers are nearing completion. The lavish $11bn (£6.7bn) CityCenter complex will boast a casino, four hotels, luxury apartments, a fire station and even an on-site power station. But its timing could hardly be worse.
Bursting skywards in the middle of America's gambling capital, seven glittering towers are nearing completion. The lavish $11bn (£6.7bn) CityCenter complex will boast a casino, four hotels, luxury apartments, a fire station and even an on-site power station. But its timing could hardly be worse.
Wednesday, June 24, 2009
David Einhorn: Bailout Bubble Redux | GreenLightAdvisor Views
David Einhorn: Bailout Bubble Redux | GreenLightAdvisor Views
Einhorn elaborates in his typically lucid fashion that Washington policymakers, et al, have set a new bubble in motion, the “Bailout Bubble.” The administration is reflating the economy back to 2006 levels....Most of the institutions that ran into major trouble were AAA rated entities. Fannie, Freddie, AIG, monolines, GE all were AAA rated
Einhorn elaborates in his typically lucid fashion that Washington policymakers, et al, have set a new bubble in motion, the “Bailout Bubble.” The administration is reflating the economy back to 2006 levels....Most of the institutions that ran into major trouble were AAA rated entities. Fannie, Freddie, AIG, monolines, GE all were AAA rated
Adding Up the Government’s Total Bailout Tab - Interactive Graphic - NYTimes.com
Adding Up the Government’s Total Bailout Tab - Interactive Graphic - NYTimes.com: "hrough April 30, the government has made commitments of about $12.2 trillion and spent $2.5 trillion — but also has collected more than $10 billion in dividends and fees. Here is an overview, organized by the role the government has assumed in each case."
Irish restaurants | Irish economy
Irish restaurants | Irish economy: "The country’s biggest spenders, the property developers, owe billions of euros. Building contractors, architects and realtors sit idly in their offices. The over-extended banks aren’t lending money. Thousands lose their jobs every week. High earners in the government, the media and business are being forced to accept pay cuts"
Tuesday, June 23, 2009
Oxford loses 100million in credit crunch | UK News | The National Student
Oxford loses 100million in credit crunch | UK News | The National Student
Oxford University has revealed that it has lost more than £100 million as a result of the global economic recession. Over the course of the past year investments in the University have fallen from £689 million to £593 million.
The University’s financial statement was published on January 12. It covered the period July 2007 to July 2008 and exposed what the University has described as a “relatively modest decline” of 5.1%, from £688.6m to £653.5m.
The Harvard Crimson :: News :: Interactive Graphic: Elite Endowments Plunge
The Harvard Crimson :: News :: Interactive Graphic: Elite Endowments Plunge
Graphic showing how endowments have declined...see comments for more info
Graphic showing how endowments have declined...see comments for more info
Monday, June 22, 2009
FT.com / Companies / Financials - A to Z of Generation Y attitudes
FT.com / Companies / Financials - A to Z of Generation Y अत्तितुदेस
While craving excitement and challenge, nearly 90 per cent of Generation Ys describe themselves as loyal to their employer, according to the study Bookend Generations , published this week by the US-based Center for Work-Life Policy. In addition, nearly half of this tech-savvy and "connected" generation prefers face-to-face communication at work to e-mails, texts or phone calls.
Loyalty is also a key finding in European research to be published t omorrow. Young professionals interviewed for The Reflexive Generation , a report by London Business School's Centre for Women in Business, surprised even themselves by their commitment.
Saturday, June 20, 2009
Wall Street Lays Another Egg | vanityfair.com
Wall Street Lays Another Egg | vanityfair.com: "Not so long ago, the dollar stood for a sum of gold, and bankers knew the people they lent to. The author charts the emergence of an abstract, even absurd world—call it Planet Finance—where mathematical models ignored both history and human nature, and value had no meaning.
by Niall Ferguson"
by Niall Ferguson"
Friday, June 19, 2009
Wall Street and the Third World | vanityfair.com
Wall Street and the Third World | vanityfair.com
Wall Street’s Toxic Message
When the current crisis is over, the reputation of American-style capitalism will have taken a beating—not least because of the gap between what Washington practices and what it preaches. Disillusioned developing nations may well turn their backs on the free market, warns Nobel laureate Joseph E. Stiglitz, posing new threats to global stability and U.S. security.
Tuesday, June 16, 2009
Op-Ed Columnist - Paul Krugman - Home Not-So-Sweet Home, and the ownership obsession - Op-Ed - NYTimes.com
Op-Ed Columnist - Paul Krugman - Home Not-So-Sweet Home, and the ownership obsession - Op-Ed - NYTimes.com: "Owning a home lies at the heart of the American dream.” So declared President Bush in 2002, introducing his “Homeownership Challenge” — a set of policy initiatives that were supposed to sharply increase homeownership, especially for minority groups. Oops."
Foreign Policy: 8 Steps to a Trillion-Dollar Meltdown
Foreign Policy: 8 Steps to a Trillion-Dollar Meltdown
How did the U.S. financial crisis happen? A review of the road to ruin reveals a course littered with more villains than heroes.  The chairman: Is Ben big enough to tell the financial sector to eat its losses? No, it’s not the Great Depression, but the United States is facing a nasty economy-wide retrenchment following the excesses of the 2000s, with no easy way to dance through it. Think 1979 to 1982, when then U.S. Federal Reserve Chairman Paul Volcker exorcised consumer price inflation from the economy. The difference today is that the inflationary explosion has been absorbed by prices of assets—houses, stocks and bonds, office buildings—rather than by the prices of things you buy at the store. Here’s how it happened. |
Saturday, June 13, 2009
Tuesday, June 9, 2009
The free market takes a global hit - MarketWatch
The free market takes a global hit - MarketWatch: "Across the United States, Europe and much of the rest of the developed world, a wave of government interventionism is sweeping country after country. Governments are fast taking control of private companies and entire industries. The state's heavy hand in the economy is signaling a strategic rejection of free-market doctrine.
In its place has come state capitalism, a system in which the state functions as the leading economic actor and uses markets primarily for political gain. In the years to come this may well present a significant challenge to managers and shareowners of companies and other private institutions."
In its place has come state capitalism, a system in which the state functions as the leading economic actor and uses markets primarily for political gain. In the years to come this may well present a significant challenge to managers and shareowners of companies and other private institutions."
Monday, June 8, 2009
Household Debt - Continuations
Household Debt - Continuations: "Household Debt
In thinking about the possible extent of the current economic crisis, I have been focused on understanding the role of debt. I first started looking at household debt. The Federal Reserve publishes statistics called the “Flow of Funds” which track sources and uses of capital in the economy over time. The following chart shows household debt, broken down into consumer debt (credit cards) and home mortgages, starting in 1966."
In thinking about the possible extent of the current economic crisis, I have been focused on understanding the role of debt. I first started looking at household debt. The Federal Reserve publishes statistics called the “Flow of Funds” which track sources and uses of capital in the economy over time. The following chart shows household debt, broken down into consumer debt (credit cards) and home mortgages, starting in 1966."
The Coming Global Debt Write-Off : KirkSolutions LLC
The Coming Global Debt Write-Off : KirkSolutions LLC:
Repudiation: "Let me propose the following: THERE IS NO WAY TO ‘GROW’ OURSELVES OUT OF THIS CRISIS. The same applies to the rest of the global economy. The numbers are too big – frankly, insurmountable. Sooner or later, Obama, the G20 nations, and everybody else is going to have to face the fact that DEBT WILL HAVE TO BE WRITTEN OFF in order for any of us to survive this mess. Unless we want soup lines and “brother can you spare a dime?” signs littering CNN, there isn’t any other choice. Here’s why."
Repudiation: "Let me propose the following: THERE IS NO WAY TO ‘GROW’ OURSELVES OUT OF THIS CRISIS. The same applies to the rest of the global economy. The numbers are too big – frankly, insurmountable. Sooner or later, Obama, the G20 nations, and everybody else is going to have to face the fact that DEBT WILL HAVE TO BE WRITTEN OFF in order for any of us to survive this mess. Unless we want soup lines and “brother can you spare a dime?” signs littering CNN, there isn’t any other choice. Here’s why."
Consumer tidal wave on the way: China's middle class | csmonitor.com
Consumer tidal wave on the way: China's middle class | csmonitor.com: "Grant expects 700 million Chinese to have joined the 'consumer class' by 2020 compared with less than 100 million today.
That adds up to a five-fold increase in urban consumer spending over the next 20 years to $2.3 trillion a year, according to a recent McKinsey report 'From Made in China to Sold in China.'"
That adds up to a five-fold increase in urban consumer spending over the next 20 years to $2.3 trillion a year, according to a recent McKinsey report 'From Made in China to Sold in China.'"
As Consumerism Spreads, Earth Suffers, Study Says
As Consumerism Spreads, Earth Suffers, Study Says: "Approximately 1.7 billion people worldwide now belong to the 'consumer class'—the group of people characterized by diets of highly processed food, desire for bigger houses, more and bigger cars, higher levels of debt, and lifestyles devoted to the accumulation of non-essential goods.
Today nearly half of global consumers reside in developing countries, including 240 million in China and 120 million in India—markets with the most potential for expansion."
Today nearly half of global consumers reside in developing countries, including 240 million in China and 120 million in India—markets with the most potential for expansion."
AGRI-FOOD THOUGHTS - China Consumer Boom Means Higher Soft Commodity Prices :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website
AGRI-FOOD THOUGHTS - China Consumer Boom Means Higher Soft Commodity Prices :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website: "As incomes rise in China and India, their consumers will dictate prices for oil and food. Their preferences are setting relative prices of nearly all commodities. These preferences have shifted to reflect their higher incomes, and will continue to do so. Chart below portrays per capita consumption of beef and rice by Chinese consumers, per UN FAO. Beef is now a preferred item on the menu at Chinese homes. Magnifying this shift is number of consumers in China and India. Such preference shifts have caused prices of grains and meats around world to rise. Higher beef consumption means raising more beef. Raising more beef means using more grain. More grain is consumed to feed the beef than is freed up from eating less rice. Agri-Food growth cycle that has emerged is really that simple."
Chinese Success Story Chokes on Its Own Growth - New York Times
Chinese Success Story Chokes on Its Own Growth - New York Times: "Few cities anywhere have created wealth faster than Shenzhen, but the costs of its phenomenal success stare out from every corner: environmental destruction, soaring crime rates and the disillusionment and degradation of its vast force of migrant workers, Ms. Zhang among them.
Shenzhen was a sleepy fishing village in the Pearl River delta, next to Hong Kong, when it was decreed a special economic zone in 1980 by the paramount leader Deng Xiaoping. Since then, the city has grown at an annual rate of 28 percent, though it slowed to 15 percent in 2005."
Shenzhen was a sleepy fishing village in the Pearl River delta, next to Hong Kong, when it was decreed a special economic zone in 1980 by the paramount leader Deng Xiaoping. Since then, the city has grown at an annual rate of 28 percent, though it slowed to 15 percent in 2005."
China factory closure leaves workers asking: now what? | International | Reuters
China factory closure leaves workers asking: now what? | International | Reuters: "Exporters in the once-booming southern province of Guangdong and other industrial hubs have suffered in recent years from rising labor and input costs, a stronger Chinese currency, fewer tax breaks and more stringent testing standards.
Now, credit is constricting as the U.S. crisis spreads. Factories across southern China survive on a precarious diet of loans as they compete for foreign orders with wafer-thin margins.
Yu and about 7,000 other workers were told they would not be paid and as hundreds took to the streets to protest, many wondered: If such a seemingly well-founded company could fail, who was safe in this environment?"
Now, credit is constricting as the U.S. crisis spreads. Factories across southern China survive on a precarious diet of loans as they compete for foreign orders with wafer-thin margins.
Yu and about 7,000 other workers were told they would not be paid and as hundreds took to the streets to protest, many wondered: If such a seemingly well-founded company could fail, who was safe in this environment?"
A Textile Capital of China Is Hobbled by the Downturn - NYTimes.com
A Textile Capital of China Is Hobbled by the Downturn - NYTimes.com: "SHAOXING, China — This was a city that globalization built.
Not long ago, 20,000 textile and garment factories were bustling here, crowded with workers knitting and sewing for six, and sometimes seven, days a week to produce the wares sold at big American retailers like Gap and Wal-Mart.
Now, demand is waning in the United States, and Shaoxing, a coastal city that is one of the world’s biggest textile centers, has fallen victim to the global downturn.
Factories here are closing. Some bosses have fled town, leaving thousands of workers in the lurch. And other owners are worried about mounting debts and the prospect of bankruptcy.
Qian Jin, an industry expert, says Chinese textile companies are suddenly in a “struggle for survival.” A warning from Beijing last December was dire, too: As many as two-thirds of the country’s textile and apparel companies could go broke."
Not long ago, 20,000 textile and garment factories were bustling here, crowded with workers knitting and sewing for six, and sometimes seven, days a week to produce the wares sold at big American retailers like Gap and Wal-Mart.
Now, demand is waning in the United States, and Shaoxing, a coastal city that is one of the world’s biggest textile centers, has fallen victim to the global downturn.
Factories here are closing. Some bosses have fled town, leaving thousands of workers in the lurch. And other owners are worried about mounting debts and the prospect of bankruptcy.
Qian Jin, an industry expert, says Chinese textile companies are suddenly in a “struggle for survival.” A warning from Beijing last December was dire, too: As many as two-thirds of the country’s textile and apparel companies could go broke."
20 million jobless migrant workers return home_English_Xinhua
20 million jobless migrant workers return home_English_Xinhua: "BEIJING, Feb. 2 (Xinhua) -- About 20 million of China's migrant workers have returned home after losing their jobs as the global financial crisis takes a toll on the economy, said a senior official here on Monday.
Chen Xiwen, director of the office of the central leading group on rural work, said about 15.3 percent of the 130 million migrant workers had returned jobless from cities to the countryside.
The figures were based on a survey by the Ministry of Agriculture in 150 villages in 15 provinces, carried out before the week-long Lunar New Year holiday which began on Jan. 25.
His remarks came a day after the central government issued its first document this year, which warned 2009 will be 'possibly the toughest year' since the turn of the century in terms of securing economic development and consolidating the 'sound development momentum' in agriculture and rural areas."
Chen Xiwen, director of the office of the central leading group on rural work, said about 15.3 percent of the 130 million migrant workers had returned jobless from cities to the countryside.
The figures were based on a survey by the Ministry of Agriculture in 150 villages in 15 provinces, carried out before the week-long Lunar New Year holiday which began on Jan. 25.
His remarks came a day after the central government issued its first document this year, which warned 2009 will be 'possibly the toughest year' since the turn of the century in terms of securing economic development and consolidating the 'sound development momentum' in agriculture and rural areas."
Saturday, June 6, 2009
Friday, June 5, 2009
The US Government Will Not Choose Deflation | Pacific Capital Associates
The US Government Will Not Choose Deflation | Pacific Capital Associates: "The US Government Will Not Choose Deflation
The modern-day monetary system employed in the United States is based on currency that can be created at the bureaucratic touch of a button. In charge of that button is a group of people with a firmly entrenched belief that deflation is the worst of all possible monetary outcomes.
We believe that this state of affairs is simply incompatible with the existence of the type of protracted 'deflationary spiral' about which it has become all the rage to worry. Deflation is a choice in the current monetary regime, and it is a choice that our government simply cannot make.
Before we explain our reasoning, let's deal with the definitional problem inherent in this topic. The word 'deflation' is used by some people to describe a generalized decline in prices. To others, the word describes a decline in the money supply. The word 'inflation' correspondingly refers to an increase in prices or an increase in the money supply, depending on whom you ask."
The modern-day monetary system employed in the United States is based on currency that can be created at the bureaucratic touch of a button. In charge of that button is a group of people with a firmly entrenched belief that deflation is the worst of all possible monetary outcomes.
We believe that this state of affairs is simply incompatible with the existence of the type of protracted 'deflationary spiral' about which it has become all the rage to worry. Deflation is a choice in the current monetary regime, and it is a choice that our government simply cannot make.
Before we explain our reasoning, let's deal with the definitional problem inherent in this topic. The word 'deflation' is used by some people to describe a generalized decline in prices. To others, the word describes a decline in the money supply. The word 'inflation' correspondingly refers to an increase in prices or an increase in the money supply, depending on whom you ask."
The Great Debate » Debate Archive » U.S. and UK on brink of debt disaster | The Great Debate |
The Great Debate » Debate Archive » U.S. and UK on brink of debt disaster | The Great Debate |: "Home
Repudiation Argument
John Kemp Great Debate-- John Kemp is a Reuters columnist. The opinions expressed are his own. –
The United States and the United Kingdom stand on the brink of the largest debt crisis in history.
While both governments experiment with quantitative easing, bad banks to absorb non-performing loans, and state guarantees to restart bank lending, the only real way out is some combination of widespread corporate default, debt write-downs and inflation to reduce the burden of debt to more manageable levels. Everything else is window-dressing.
To understand the scale of the problem, and why it leaves so few options for policymakers, take a look at Chart 1 (https://customers.reuters.com/d/graphics/USDEBT1.pdf), which shows the growth in the real economy (measured by nominal GDP) and the financial sector (measured by total credit market instruments outstanding) since 1952.
r.
WRONGHEADED POLICIES
From this perspective, it is clear many of the existing policies being pursued in the United States and the United Kingdom will not resolve the crisis because they do not lower the debt ratio.
In particular, having governments buy distressed assets from the banks, or provide loan guarantees, is not an effective solution. It does not reduce the volume of debt, or force recognition of losses. It merely re-denominates private sector obligations to be met by households and firms as public ones to be met by the taxpayer."
Repudiation Argument
John Kemp Great Debate-- John Kemp is a Reuters columnist. The opinions expressed are his own. –
The United States and the United Kingdom stand on the brink of the largest debt crisis in history.
While both governments experiment with quantitative easing, bad banks to absorb non-performing loans, and state guarantees to restart bank lending, the only real way out is some combination of widespread corporate default, debt write-downs and inflation to reduce the burden of debt to more manageable levels. Everything else is window-dressing.
To understand the scale of the problem, and why it leaves so few options for policymakers, take a look at Chart 1 (https://customers.reuters.com/d/graphics/USDEBT1.pdf), which shows the growth in the real economy (measured by nominal GDP) and the financial sector (measured by total credit market instruments outstanding) since 1952.
r.
WRONGHEADED POLICIES
From this perspective, it is clear many of the existing policies being pursued in the United States and the United Kingdom will not resolve the crisis because they do not lower the debt ratio.
In particular, having governments buy distressed assets from the banks, or provide loan guarantees, is not an effective solution. It does not reduce the volume of debt, or force recognition of losses. It merely re-denominates private sector obligations to be met by households and firms as public ones to be met by the taxpayer."
Mish's Global Economic Trend Analysis: Brink of Debt Disaster
Mish's Global Economic Trend Analysis: Brink of Debt Disaster: WHY REPUDIATION WILL COME
"The United States and the United Kingdom stand on the brink of the largest debt crisis in history.
While both governments experiment with quantitative easing, bad banks to absorb non-performing loans, and state guarantees to restart bank lending, the only real way out is some combination of widespread corporate default, debt write-downs and inflation to reduce the burden of debt to more manageable levels. Everything else is window-dressing."
"The United States and the United Kingdom stand on the brink of the largest debt crisis in history.
While both governments experiment with quantitative easing, bad banks to absorb non-performing loans, and state guarantees to restart bank lending, the only real way out is some combination of widespread corporate default, debt write-downs and inflation to reduce the burden of debt to more manageable levels. Everything else is window-dressing."
Thursday, June 4, 2009
Levi Novey: The Amazon Rainforest is More Important than Electric Cars
Levi Novey: The Amazon Rainforest is More Important than Electric Cars: "The facts are plain and simple. Deforestation accounts for 20%-25% of worldwide carbon emissions, whereas the global transportation sector currently accounts for the same amount if not less (15-20%). The Amazon Rainforest is one of the largest forests in the world, and arguably the most important. Nowhere else in the world is there more biodiversity among plants and animals. Did you know that approximately one in every 10 known species in the world lives in the Amazon? It also provides the world with 20% of its oxygen, and contains 20% of the world's freshwater. If that's not enough, 25% of all modern pharmaceutical drugs are derived from rainforest plants, and yet only about 1% have been studied, including those that might help fight cancer.
Since the Amazon Rainforest is so important, we must ask ourselves: 'Why have we (or at least the media) become so bored of discussing the Amazon and deforestation?'"
Since the Amazon Rainforest is so important, we must ask ourselves: 'Why have we (or at least the media) become so bored of discussing the Amazon and deforestation?'"
Tuesday, June 2, 2009
The Obama Motor Co. - WSJ.com
The Obama Motor Co. - WSJ.com: "Every decision the feds have made since December suggests that nonpolitical management will be impossible. First they replaced Mr. Wagoner -- whom they are nonetheless still paying -- with the more pliable Fritz Henderson as CEO and Kent Kresa as Chairman. The latter are good at playing Washington but unproven in making popular cars. Then Treasury bludgeoned the bond holders in both Chrysler and GM to take pennies on the dollar, which will not make creditors eager to lend to the companies in the future."
General Motors | GM Reinvention | Corporate Information
http://link.brightcove.com/services/player/bcpid22879159001?bclid=22378947001&bctid=24833632001
General Motors | GM Reinvention | Corporate Information
http://link.brightcove.com/services/player/bcpid22879159001?bclid=22378947001&bctid=24833632001
Monday, June 1, 2009
Back to Business - Banks Dig In to Resist New Limits on Derivatives - Series - NYTimes.com
Back to Business - Banks Dig In to Resist New Limits on Derivatives - Series - NYTimes.com: "After the 2000 legislation was passed, derivatives trading exploded, helping the biggest traders earn immense profits.
The market now represents transactions with a face value of $600 trillion, up from $88 trillion a decade ago. JPMorgan, the largest dealer of over-the-counter derivatives, earned $5 billion trading them in 2008, according to Reuters, making them one of its most profitable businesses."
The market now represents transactions with a face value of $600 trillion, up from $88 trillion a decade ago. JPMorgan, the largest dealer of over-the-counter derivatives, earned $5 billion trading them in 2008, according to Reuters, making them one of its most profitable businesses."
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