It only takes a few moments to share an article, but the person on the other end who reads it might have his life changed forever.

Saturday, June 30, 2012

Records Tumble as Billionaires Spend $207 Million at Christie’s - Bloomberg

Records Tumble as Billionaires Spend $207 Million at Christie’s - Bloomberg

 
A self-portrait by Jean-Michel Basquiat sold for a record 12.9 million pounds. The 1981 “Untitled” was entered by a collector from the West Coast of the U.S. who bought it for a record $14.6 million at auction in 2007. Brett Gorvy, Christie’s international head of postwar and contemporary art, was the winning bidder for a telephone client.
The 1989 Gerhard Richter abstract “Struktur (2),” was also bought by Gorvy for a client. It was another guaranteed work fresh to the auction market and made 12.7 million pounds.


Lords of Finance: The Bankers Who Broke the World

http://jessescrossroadscafe.blogspot.com/2012/06/lords-of-finance-bankers-who-broke.html

Liaquat Ahamed, author of Lords of Finance, The Bankers Who Broke the World, discusses the parallels between the Great Depression and the Financial Crisis of today at The American Academy of Berlin.

I concur heartily with Mr. Ahamed on the primary causes of the bubble and collapse, especially with regard to the enormous policy errors of the Greenspan Fed.

But I always find it annoying that the conscious, widespread fraud that was promoted by Wall Street, both in 1929 and in the most recent crisis, is rarely discussed as the major corrupting influence that distorted both economic and monetary policy and the real economy.

Graph: Gross Federal Debt (FYGFD) - FRED - St. Louis Fed

Graph: Gross Federal Debt (FYGFD) - FRED - St. Louis Fed

 

Hooray Euro is Saved.. For the 483rd Time!

Hooray! Euro is saved ... for the 483rd time! - The Buzz - Investment and Stock Market News

 

Land of the Free: the Best Investigative Reporting on U.S. Prisons - ProPublica

The U.S. has the highest-reported incarceration rate in the world. Some of the most revealing reporting on the system:

Land of the Free: the Best Investigative Reporting on U.S. Prisons - ProPublica

 

From Charles Wyplosz: One more summit: The crisis rolls on

It seems every time Europe has a summit, announces a new plan ... and then the details disappoint. As usual, the actual statement lacked details, but here are a couple of reviews:

From Charles Wyplosz: One more summit: The crisis rolls on

Reading the official documents from the June 28 summit requires linguistic and divination skills. The texts are convoluted and clearly aim at giving various positive impressions while shying away from deep commitments.

The clearest result is that EFSF/ESM funds can be used directly to support banks.

The summit attendees seem to have successfully drawn the conclusions that this was necessary from the disastrous impact of their mid-June decision on new lending Spanish authorities to shore up their banks.
...
At the end of the day, the summit was a little move in the right direction bank supervision, but keep watching; we still don’t know what will actually get put in place. There was nothing on collapsing Greece, nothing on unsustainable public debts in several countries, and no end in sight to recession in an increasing number of countries.

There was no knock-out winner in this summit, but on points I’d have to say that the winner is the crisis.

Friday, June 29, 2012

BBC News - Magic explained: Fooling Houdini

BBC News - Magic explained: Fooling Houdini


BBC News - Life in a cashless society

JIM ROGERS: Fixing The System Requires "Financial Armageddon" - Business Insider

JIM ROGERS: Fixing The System Requires "Financial Armageddon" - Business Insider

Rogers would like to see governments allow banks to fail, even at the cost of "financial armageddon". Continuing to bail out countries and banks only postpones the inevitable, he argues.


This link shows historical charts of Chicago ISM, with recession bars.

This link shows historical charts of Chicago ISM, with recession bars.

https://www.ism-chicago.org/chapters/ism-ismchicago/files/ChicagoPMI-12-06.pdf

The trend is your friend?

The trend is your friend?
wage and salary gains
January ... 0.4%
February... 0.4%
March ... 0.3%
April... 0.1%
May ... 0.0%

Personal Income and Spending


Chicago PMI:

Chicago PMI: The overall index increased to 52.9 in June, up from 52.7 in May. This was slightly below consensus expectations of 53.1 and indicates slow growth in June. Note: any number above 50 shows expansion. From the Chicago ISM:
The Chicago Purchasing Managers reported the June Chicago Business Barometer stabilized just above May's 33 month low. The short-term trend of the Chicago Business Barometer fell for the third month. The three-month moving average of each Business Activity index, except Employment, fell in June.

Our latest durable goods graph, this using 20 years of data.

Our latest durable goods graph, this using 20 years of data.
New orders are sending a recession signal.

120483.pdf - Google Docs

Fed's Bullard says policy is at proper place - MarketWatch

Fed's Bullard says policy is at proper place - MarketWatch


WASHINGTON (MarketWatch)-- Monetary policy is appropriately ultra-easy given the macroeconomic situation, said James Bullard, the president of the St. Louis Federal Reserve Bank on Friday. In a speech on the outlook to a business group in Little Rock, Ark., Bullard said the Fed could respond "to a significant deterioration" to the economy. But he said the Fed "may be trying to do too much with monetary policy," risking monetary instability in the U.S. and around the world. The near-zero rate policy has been in place for more than three years and is projected for several more, he noted. This is far beyond the typical recession and recovery discussed in academic literature, he said. While the policy has been appropriate so far, it could "reignite a 1970s-type experience globally" if pursued too aggressively, Bullard said. This era included four recessions in 13 years, double-digit inflation and double-digit unemployment. The lesson is clear, he said: "Do not let the inflation genie out of the bottle." Bullard said labor market policies would be better than Fed rate policy to bring down unemployment.

Fed's Dudley: Unclear if soft-patch is over

http://www.marketwatch.com/story/feds-dudley-unclear-if-soft-patch-is-over-2012-06-29?link=MW_home_latest_news


WASHINGTON (MarketWatch) - The "pay-back" to the economy from the mild winter is over but it is still unclear whether the economy will regain momentum, said William Dudley, the president of the New York Federal Reserve Bank, on Friday. "There are important issues - such as the outlook in Europe and the degree to which we have lost underlying momentum at home - where more information is needed before making an informed judgment," Dudley said in a speech to the annual convention of the Puerto Rico Chamber of Commerce in San Juan. Speaking by videoconference, Dudley said he will be watching closely whether domestic momentum and hiring picks up and whether financial conditions ease or tighten further. Dudley said he expects inflation to remain moderate. He said that credit conditions are gradually easing. There are "solid grounds" to expect growth will strengthen if Congress can avoid the fiscal cliff and European leaders can manage their challenges, he said.



SVU ( update )

http://seekingalpha.com/article/691691-supervalu-8-dividend-yield-and-super-value-for-investors?source=yahoo

Current price $5.27...Earnings July 23...this is a no brainier. $8 dollar stock all day, and rumors of a buyout.

Disclosure ( Long SVU )

U.S. consumer spending falls slightly in May St

http://www.marketwatch.com/story/us-consumer-spending-falls-slightly-in-may-2012-06-29

WASHINGTON (MarketWatch) - Consumer spending in the U.S. fell slightly in May and was revised downward in April, according to the latest government data. Spending declined by less than 0.1% last month, the Commerce Department said Friday. And spending for April was revised down to a 0.1% increase from an original 0.3% gain. Personal income, meanwhile, rose 0.2% in May, while disposable income adjusted for inflation climbed 0.3%, reflecting a decline in energy costs. Economists surveyed by MarketWatch had forecast no increase in spending and a 0.2% rise in personal income. Since incomes rose faster than spending, the personal savings rate rose to 3.9% from 3.7%. Also in May, inflation as gauged by the PCE price index fell 0.2%. Excluding food and energy, the price index rose 0.1%.

And in related new, Britain's big 4 banks admit to "mis-selling" interest rate hedges

And in related new, Britain's big 4 banks admit to "mis-selling" interest rate hedges....on Wall Street, they call this "ripping the customer's face off".

Big Four banks admit to mis-selling interest rate swaps - Telegraph

Mervyn King reiterates call to break up banks - Telegraph

Governor of the Bank of England urges the separation of lenders' retail businesses from their "casino banking" arms and attacks "deceitful and shoddy" behaviour of British banks. So, Mervyn King wants Glass-Steagall for the UK....

Mervyn King reiterates call to break up banks - Telegraph

What's in a Name?

Some interesting comments by Bill Gross, if you ignore the navel gazing.
Estimates Govt Debt to GDP for US at 800%, includes state and local govt plus future liabilities from SS, Medicare etc.
Concludes only two courses of action, default or inflation.

What's in a Name?

Investors Favor Emerging Debt Over U.S. to Navigate Euro Crisis - Bloomberg

Investors Favor Emerging Debt Over U.S. to Navigate Euro Crisis - Bloomberg


Global investors managing more than $500 billion are buying emerging-market debt and shares of well capitalized companies to avoid the European debt crisis and low- yielding havens such as U.S. Treasuries.
“Balance sheet strength is a big theme for us at the moment,” said Anne Richards, chief investment officer at Aberdeen Asset Management Plc (ADN), which oversees 185 billion pounds ($288 billion). “Many European equities are high risk while we are also nervous about U.S. Treasuries, which look overvalued.”

BBC News - China eyes yuan convertibility as it sets up trial zone

BBC News - China eyes yuan convertibility as it sets up trial zone

Thursday, June 28, 2012

Slideshow: Colorado Springs fire ranks as state's most destructive on record

Slideshow: Colorado Springs fire ranks as state's most destructive on record | Reuters.com

Ron Paul Responds to Supreme Court Obamacare Decision

From Ron Paul:


I strongly disagree with today’s decision by the Supreme Court, but I am not surprised. The Court has a dismal record when it comes to protecting liberty against unconstitutional excesses by Congress.

Today we should remember that virtually everything government does is a ‘mandate.’ The issue is not whether Congress can compel commerce by forcing you to buy insurance,  or simply compel you to pay a tax if you don’t.  The issue is that this compulsion implies the use of government force against those who refuse. The fundamental hallmark of  a free society should be the rejection of force. In a free society, therefore, individuals could opt out of “Obamacare” without paying a government tribute.

Those of us in Congress who believe in individual liberty must work tirelessly to repeal this national health care law and reduce federal involvement in healthcare generally. Obamacare can only increase third party interference in the doctor-patient relationship, increase costs, and reduce the quality of care. Only free market medicine can restore the critical independence of doctors, reduce costs through real competition and price sensitivity, and eliminate enormous paperwork burdens. Americans will opt out of Obamacare with or without Congress, but we can seize the opportunity today by crafting the legal framework to allow them to do so.

Bring a fork lift to read H.R. 2454

Bring a fork lift to read H.R. 2454





http://housedocs.house.gov/rules/health/111_ahcaa.pdf

Scientists unveil battery that can be painted onto surfaces

Scientists unveil battery that can be painted onto surfaces

 Awesome...Science is a wonderful thing.

Libor scandal: FSA and US criminal probe could see banks pay out billions in damages | Mail Online

Libor scandal: FSA and US criminal probe could see banks pay out billions in damages | Mail Online

Analysts say penalties could dwarf the record £290m fine for Barclays
HSBC, RBS and Lloyds have all also been named in lawsuits
Regulators in Japan and Canada are also conducting investigations
The manipulation of Libor by Barclays is likely to be the ‘tip of the iceberg’ in terms of fraudulent activities by banks, according to a former head of the U.S. securities regulator.
American regulators have issued subpoenas to banks including UBS, Citigroup, and Bank of America regarding how Libor rates are calculated
.

 Barclays scandal: How Libor affects mortgages and savings rates - and is customer compensation likely? | This is Money



Italy, Spain reportedly block EU growth pact - MarketWatch

Italy, Spain reportedly block EU growth pact - MarketWatch

 Italy and Spain have refused to back a growth agreement announced Thursday at this week's two-day European Union summit, according to reports. Borrowing costs have risen to dangerously high levels in both Italy and Spain, and the countries want Germany to agree to short-term relief measures not included in the proposed growth deal, Reuters reported. These measures would include using European rescue funds to buy bonds and lend money to Spain's banks directly, the report stated. European leaders late Thursday said that they had agreed in principle on a "compact for growth and jobs" which will mobilize around 120 billion euro ($149.1 billion) for immediate growth measures. President of the European Council Herman Van Rompuy said "the growth agenda is a sign of our unrelenting commitment. It brings together all the concrete measures that we will swiftly take, in each member state and together as a union."







Exxon's CEO: Climate, energy fears overblown

Exxon's CEO: Climate, energy fears overblown

I always believe what a disinterested observer tells me.

Fed's Lockhart lists three ease scenarios report - MarketWatch

Fed's Lockhart lists three ease scenarios report - MarketWatch

 More Federal Reserve easing is not likely to be needed, but is available and would be effective if put in place, said Dennis Lockhart, the president of the Atlanta Federal Reserve Bank, in an interview Thursday with Dow Jones Newswires. Lockhart said the economy was in a "bit of a slowdown," but added that it was hard to tell if it was temporary. Lockhart set out three scenarios under which he might support additional stimulus: if it seemed the economy was headed back into recession, if the unemployment rate started to rise or if deflation became a threat. None of these events is in his "baseline scenario," Lockhart, a voting member of the Fed's interest-rate setting committee, added. He said the decision last week to extend the central bank's Operation Twist sustained the Fed's current accommodation at a time when it is needed.

FRB: Press Release--Federal Reserve Board and Treasury Department agree to reduce credit protection Treasury is providing for the Term Asset-Backed Securities Loan Facility--June 28, 2012

FRB: Press Release--Federal Reserve Board and Treasury Department agree to reduce credit protection Treasury is providing for the Term Asset-Backed Securities Loan Facility--June 28, 2012

The Federal Reserve Board on Thursday announced that it agreed with the Treasury Department that
it was appropriate to reduce from $4.3 billion to $1.4 billion the credit protection Treasury is providing for the Term Asset-Backed Securities Loan Facility (TALF).
TALF supported the origination of nearly 3 million auto loans, more than 1 million student loans, nearly 900,000 loans to small businesses, 150,000 other business loans, and millions of credit card loans. To date, the program has experienced no losses and the Board continues to see it as highly unlikely that recourse to TARP funds will be necessary.

QE Timeline

November 25, 2008: Press Release: $100 Billion GSE direct obligations, $500 billion in MBS

December 16, 2008 FOMC Statement: Evaluating benefits of purchasing longer-term Treasury Securities

January 28, 2009: FOMC Statement: FOMC Stands Ready to expand program.

March 18, 2009: FOMC Statement: Expand MBS program to $1.25 trillion, buy up to $300 billion of longer-term Treasury securities

March 31, 2010: QE1 purchases were completed at the end of Q1 2010.

August 27, 2010: Fed Chairman Ben Bernanke hints at QE2: Analysis: Bernanke paves the way for QE2

November 3, 2010: FOMC Statement: $600 Billion QE2 announced.

June 30, 2011: QE2 purchases were completed at the end of Q2 2011.

September 21, 2011: "Operation Twist" announced. "The Committee intends to purchase, by the end of June 2012, $400 billion of Treasury securities with remaining maturities of 6 years to 30 years and to sell an equal amount of Treasury securities with remaining maturities of 3 years or less."

June 20, 2012: "Operation Twist" extended. "The Committee also decided to continue through the end of the year its program to extend the average maturity of its holdings of securities."

Yup the future of Health care right here America





The commerce clause reading by Roberts allows the right to turn some straw into gold:

The commerce clause reading by Roberts allows the right to turn some straw into gold:

Roberts Rejects Obama's Theory On Mandates | TPM Livewire

Justice Ginsburg Attacks Chief Justice Roberts for his “Crabbed Reading of the Commerce Clause” - Hit & Run : Reason.com

If Roberts, - the most Constitutionally knowledgeable, and Constitutionally solid nominee in generations-, went for this bullshit, then what the f*** is the point in voting at all anymore?

Paul would have been useless obviously.

The real problem here is that there remains no aspect of your life that isn't in a database. That you aren't in a database is now in a database.

Obama: Mandate is Not a Tax - ABC News

The court reinforces that individuals can simply refuse to pay the tax and not comply with the mandate. Of course you will most likely be arrested by Jack booted IRS thugs.

Remember when Obamacare was not a tax?

Obama: Mandate is Not a Tax - ABC News


Then again this generation is being bred to forget what was then, and we here in our 40's and 50's and 60's we make jokes about how men fought for the freedoms that we have enjoyed throughout our lives up to this point...Those freedom's are being wilted away ever so slowly un-noticed by today's youth DAILY!...And we 40,50,and 60 years olds have been bred to accept whats in front of you or face the SWAT teams or Drones... Sad really...Of course there are many who don't care and act as if all this is ok...Well its not ok...

Goodbye 10th amendment.

We are to blame in the end, and history will write about it for sure. But in the end when we are gone it wont matter now will it. Truly a sad day for this nation...

"Today, we need a nation of Minutemen, citizens who are not only prepared to take arms, but citizens who regard the preservation of freedom as the basic purpose of their daily life and who are willing to consciously work and sacrifice for that freedom."
-- John F. Kennedy

Growth in Tenth District Manufacturing Eased Further Activity Slowed


From the Kansas  Fed: Growth in Tenth District Manufacturing Eased Further Activity Slowed
Growth in Tenth District manufacturing activity slowed in June, and expectations eased as producers grew more uncertain.. ...

The month-over-month composite index was 3 in June, down from 9 in May and equal to 3 in April ... The production index eased from 17 to 12, and the new orders index fell back into negative territory after rising slightly last month. Order backlogs continued to ease. The employment index moved lower but remained positive, while the new orders for exports index decreased.

Price indexes moderated for the second straight month, including an actual decline in monthly selling prices. The month-over-month finished goods price index dropped from 0 to -4, its lowest level since mid-2010, and the raw materials price index also decreased.

Supreme Court upholds insurance mandate: reports - MarketWatch

Supreme Court upholds insurance mandate: reports - MarketWatch

The U.S. Supreme Court on Thursday upheld a requirement in President Barack Obama's health-care law for all individuals to have health insurance or pay a fine. The law's opponents argued that the entire law should be overturned. The Obama administration and insurers say that the individual mandate is needed to help pay for coverage for all Americans.

 http://www.scotusblog.com/cover-it-live/

The federalists are all about legitimating supremacy of corporate ahem competition in the "free market." 

Final   Decision: http://www.supremecourt.gov/opinions/11pdf/11-393c3a2.pdf

The Molasses Recovery: US and Eurozone GDP Growth Slow as Molasses in Wintertime « Confounded Interest

Look at the chart of Bloomberg consumer comfort versus the employment to population ratio, UGH!!!

The Molasses Recovery: US and Eurozone GDP Growth Slow as Molasses in Wintertime « Confounded Interest

 

U.S. Home Loan Banks Overexposed in Europe, Audit Finds - Bloomberg

U.S. Home Loan Banks Overexposed in Europe, Audit Finds - Bloomberg
The Home Loan Banks were chartered by Congress in 1932 to provide liquidity to the U.S. mortgage market. The banks are also permitted to make unsecured loans to foreign and domestic financial institutions to enhance revenue under the terms of their congressional charters.
The FHFA failed to notice that some of the banks had made loans exceeding regulatory limits, the Office of Inspector General said. In one case, an unidentified Home Loan Bank using a manual evaluation system failed to notice that a borrower had been subject to a credit-rating downgrade, auditors found.
FHFA officials described the agency’s rules governing unsecured lending as “outdated and overly permissive,” according to the report.
“Even when an FHLBank operates within the established limits it can amass the sort of large unsecured credit exposure that has been the source of considerable regulatory concern,” the auditors found.

Four more banks in Libor probe: report - MarketWatch

Four more banks in Libor probe: report - MarketWatch

  British Treasury chief George Osborne on Thursday said four more global banks were being investigated in a probe into alleged manipulation of global benchmark interest rates, the Associated Press reported.

In a recession, do 4-year colleges make sense? - CBS News

In a recession, do 4-year colleges make sense? - CBS News


Republicans and Democrats in Congress on Wednesday struck a deal to keep the interest rate on government-subsidized student loans at 3.4 percent.
Millions rely on those loans to pay for college, but a growing number of high school graduates have decided that it makes more sense to skip college altogether.
In central Pennsylvania, the Mechanicsburg High School class of 2012 is thinking about the future. Rebecca Bradley planned to go to college to become a teacher.
"Just in Pennsylvania for state schools, a lot of them were $20,000 to $23,000. I'm doing the math to myself like how would I pay for this on a teacher salary. I have no idea how any of this would work," Bradley said.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES:

  JP Morgan is one of the best managed banks there is. Jamie Dimon, the head of it, is one of the smartest bankers we've got. And they still lost $2 billion and counting. Precisely because they were making bets in these derivatives markets. We don't know all the details yet.
CNN.com - Transcripts

 Those dam " Thingamajigs "

A must read if you are into chinese shenanigans



"Warren Rothman, a San Francisco lawyer, was having dinner with a Chinese legal colleague in Shanghai a few years ago, he said, when the colleague “blurted out” that he’d helped pay a $3 million bribe to ensure that his client, an iconic American company, could win a contract to work in China.
Rothman was stunned. He berated his younger colleague, a legal assistant for a Western law firm. He tried to defend himself and “looked very embarrassed,” Rothman recalled. Then within days, Rothman alleges that he found himself trapped in a Kafka-esque nightmare — poisoned, placed in a mental hospital, tortured and tormented in ways that were intended to trigger a fatal stroke to make sure he never revealed what he had learned about the bribe."

 China instability rising with fungible rule of law - Joel Brinkley - POLITICO.com

U.S. first-quarter GDP growth stays at 1.9%

U.S. first-quarter GDP growth stays at 1.9%

The Most Unemployed City In Every State


Business Insider has put together a slide show with the results. For those of you who don't have the time to click through the 50+ slides and goose Henry Blodget's page views, they are listed below along with their unemployment rates:


Mobile, Alabama: Unemployment Rate 8.5%

Fairbanks, Alaska: Unemployment Rate 6.2%

Yuma, Arizona: Unemployment Rate 28.9%
http://www.businessinsider.com/the-most-unemployed-city-in-every-state-2012-6

U.S. jobless claims little changed at 386,000 - MarketWatch

U.S. jobless claims little changed at 386,000 - MarketWatch

 The number of Americans who filed requests for jobless benefits fell by 6,000 last week to 386,000, the U.S. Labor Department said Thursday. Claims from two weeks ago were revised up to 392,000 from an original reading of 387,000. Economists surveyed by MarketWatch had projected claims would fall to a seasonally adjusted 385,000 in the week ended June 23. The average of new claims over the past four weeks, meanwhile, edged down by 750 to 386,750, remaining near a seven-month high. Continuing claims decreased by 15,000 to a seasonally adjusted 3.29 million in the week ended June 16, the Labor Department said. Continuing claims are reported with a one-week lag. About 5.89 million people received some kind of state or federal benefit in the week ended June 9, up 71,724 from the prior week. Total claims are reported with a two-week lag.

Britain's recession deeper than feared - Telegraph



Britain's recession deeper than feared - Telegraph

All good just print more.... 

Italy employers slash GDP outlook in abyss | Reuters

UPDATE 1-Italy employers slash GDP outlook in abyss
| Reuters

Confindustria estimated the economy would contract by 2.4 percent in 2012, compared with a December forecast for a 1.6 percent fall. Gross domestic product would fall 0.3 percent next year, compared with a previously forecast 0.6 percent increase.
"We're in the abyss," Luca Paolazzi, head of Confindustria's research unit, commented as he presented the new forecasts.
"We're not in a war, but the economic damage caused so far is equivalent to a conflict, and the most vital and valuable parts of the Italian system have been hit: manufacturers and the young generations," he said.
The deeper-than-expected contraction will slow Italy's deficit reduction, with the budget shortfall seen at 2.6 percent of GDP in 2012 and 1.6 percent in 2013, far worse than the government's forecasts.

Wednesday, June 27, 2012

Trade thought

Sober Look: Frenzied buying of investment grade corporate bonds

...take a look at the chart..

iShares iBoxx $ Investment Grad ETF Chart - Yahoo! Finance

Prime example of everyone into the pool...and we all know how that ends.

Those LQD Dec $112 Puts Look money, as this ETF has tanked heading into November $4 - $5 both times in the 2 year run up...... Scaling in. ( As always invest at your own risk )

Trade on that...


Bank downgrades trigger billions in collateral calls – IFRE

 Bank downgrades trigger billions in collateral calls – IFRE


A series of ratings downgrades from Moody’s last week has created an unwelcome but manageable liquidity squeeze on three major banks, by forcing them to post billions of dollars in additional collateral against derivatives exposures.
Moody’s completed its rating review of international banks last Thursday and downgraded three major derivatives dealers below the crucial Single A threshold, which will likely have led to hefty collateral calls from counter parties.


OECD warns U.S. on income inequality

http://economy.money.cnn.com/2012/06/27/oced-warns-u-s-on-income-inequality/?iid=HP_LN

The United States should aim to fix its income inequality problem by improving education for disadvantaged students and raising taxes on the wealthy, according to a new report from a consortium of developed countries.
The report pointed out that the U.S. has among the highest income inequality and relative poverty among the 34 countries that make up the Organization for Economic Cooperation and Development.
"The US education system is less effective than those of other countries in helping children realize their potential," the report said. "The United States is one of only three OECD countries that on average spend less on students from disadvantaged backgrounds than on other students."

Merkel dubs quick bond solutions ‘eyewash’ - FT.com

Merkel dubs quick bond solutions ‘eyewash’ - FT.com

Fed likely to need to do more: Evans

http://www.marketwatch.com/story/fed-likely-to-need-to-do-more-evans-2012-06-27?link=MW_latest_news
The Federal Reserve is likely to have to take further easing steps to boost the economy, said Charles Evans, the president of the Chicago Federal Reserve, on Wednesday. "At some point, we are likely to need to do more," Evans said in an interview with reporters. Evans, a leading dove on the central bank, wants the Fed to tell the market that it would keep interest rates near zero as long as unemployment remains above 7%, and as long as inflation does not threaten to rise above 3%. But he indicated he would favor more asset purchases as a second-best easing option. Evans dismissed concerns that labor-market weakness was due to structural factors. He said the sustainable level of unemployment was in the 5% to 6% range, well below the current 8.2% level. Evans also said that the Fed's extension of Operation Twist will have a small effect on Treasury yields, but sends an important larger message that central bankers continue to think easing is worthwhile

China & Russia Buy Bullion as Protection | Resource Investor

China & Russia Buy Bullion as Protection | Resource Investor
 Consumers made the most of the dip in the price of bullion and mainland China’s gold purchases via Hong Kong hit a record 101.7 tonnes in April, up 62%, reported Bloomberg.
Meantime, the Russian central bank has again increased its gold reserves by 500,000 ounces. Former Russian finance minister Alexei Kudrin said that a full-blown economic and financial crisis in the euro zone is inevitable and will develop within a year.
Russia is clearly buying gold to protect the ruble from devaluations and Russia from an international monetary crisis. China is doing the same both by official gold purchases and by encouraging individuals to buy precious metals.
This is eminently understandable and sensible. It is the antithesis of the argument that central banks have everything under control. They know that is not true and so buy gold themselves.

 Individual investors should be seeking the protection of gold for all the same reasons that countries like China and Russia are doing so.

Jimmy Carter attacks Barack Obama over assassinations and drone attacks - Americas - World - The Independent

Jimmy Carter attacks Barack Obama over assassinations and drone attacks - Americas - World - The Independent

It is poignant, moreover, that both men are Peace Prize winners.
LOL

Hmm I was sitting here questioning my use of the word "  Poignant " Feel free to insert your own thoughts at will :)

High-maintenance Generation Z heads to work

This new generation has been uniquely shaped by nearly a decade of war and economic uncertainty: Those born in 1990 were 11 years old on 9/11, and ever since we have been at war. They finished high school in 2008, just as the Great Recession began. Now they're graduating amidst a stumbling "recovery" in which unemployment remains stubbornly high, especially for those younger than 25.
Gen Zers have never known a world in which one could not be in conversation with anyone anywhere any time

http://www.usatoday.com/news/opinion/forum/story/2012-06-27/generation-z-work-millenials-social-media-graduates/55845098/1

USDA Ad Says Food Stamps Will Help You Look and Feel Good


It's all about control and expanding the state.

Sinking Under A $10,000 Monthly Mortgage Payment : NPR

Sinking Under A $10,000 Monthly Mortgage Payment : NPR


The nation's housing crisis has touched countless people. Increasingly, the well-off are among them.
Housing counselors around the country say they are seeing more people struggling to keep their million-dollar homes. It's a twist on a familiar story of hardship — but one that involves some very big numbers.
Moving Up, Falling Down
Expensive homes dot the hills overlooking the beaches and boutiques of Laguna Beach, Calif. It's a tony backdrop for an event sponsored by the Orange County Home Ownership Preservation Collaborative, a nonprofit group working to help financially distressed homeowners.
John Jalali and his wife are here, seeking a loan modification on their house. Once valued at over $3 million, it's now worth about $2 million.

 Now, the Jalalis' mortgage is $10,000 per month.

Pew broke down by states the ugliness in public pension and health benefits - State Fact Sheets: Pew Pensions



State Fact Sheets: Pew Pensions Update

 

Wow, If You Need a Lawyer, Hire This Guy

 Well, he is still in law school, but check this out.
A Know Your Rights Law student backs down a cop after being unlawfully stopped for carrying a gun in Portland, Maine.






Bottom line: Most cops are most concerned about their jobs. They have so many rules that they are required to follow, none of them really know when they are and are not breaking the law. If you show even a hint of superior knowledge most of them, especially in big cities, will be very careful with you. The student in this video is very knowledgeable, but you can get pretty far with a lot less knowledge, or the appearance of superior knowledge.

Pair of Metal Detector Friends 30-Year Search Leads to Discovery of a TON of Coins Worth £10 Million


After hunting for buried treasure for three decades – and not finding a great deal – even the most diligent of us might have given up.
But not Reg Mead and Richard Miles. The two amateur metal detectors kept up their search of the same area throughout the decades and have finally struck gold – or rather silver.
They have unearthed the largest hoard of Celtic coins ever found. Each one of the 30,000–50,000 coins is estimated to be worth around £200 each, putting the value of the haul at up to £10milion.

A coin in the hand: Archaeologists believe the hoard, found by two metal detectors, is worth about £10million
A coin in the hand: Archaeologists believe the hoard, found by two metal detectors, is worth about £10million
They are thought to be from the first century BC and were found buried 3ft deep under a hedge in a farmer’s field on Jersey.
 
Two thousand years ago the Channel Island – which remains a popular spot to stash large sums of money –  was a refuge for tribes fleeing what is now northern France from the invading Roman armies.
As the legions of Julius Ceasar drew closer, the treasure is thought to have been buried by a Celtic tribe called the Coriosolitae, in the hope it could be dug up once the danger had passed.
Determined Reg Mead and Richard Miles spent decades searching a field in Jersey after hearing rumours that a farmer had discovered silver coins while working on his land
Determined Reg Mead and Richard Miles spent decades searching a field in Jersey after hearing rumours that a farmer had discovered silver coins while working on his land
And there the coins – packed in clay and weighing a ton – have remained undisturbed until last week.
The men who discovered them, Mr Mead, 70, and Mr Miles, a customs officer in his 40s, suspected treasure was in the area three decades ago, when they heard rumours a farmer had found some silver pieces on his land. After a series of largely unsuccessful forays in the area, they unearthed a stash of 120 coins in February.
Mr Mead, a grandfather who lives with wife Ruth in St Clement, Jersey, said: ‘Richard found the first one and it was amazing – when you see him raising his hand above his head (saying) “got one”.’
The pair used a powerful metal detector known as a deepseeker to search for more treasure in the field and struck lucky last week.
Richard Miles and Reg Mead first stumbled across a find of 60 silver and one gold coin - believed to be part of the same haul - back in February this year

Richard Miles and Reg Mead first stumbled across a find of 60 silver and one gold coin - believed to be part of the same haul - back in February this year
Getting the hoard out: Metal detector Reg Mead (centre, back, blue polo shirt) watches as archaeologists unearth the Celtic coin hoard
‘The machine picked up a really strong signal – so we immediately got in touch with professional archaeologists,’ Mr Mead said. ‘They started digging and we could not believe how many coins there were.
‘All of them were stuck together. I have been searching for things like this since 1959 and never found anything on this scale before.
‘We had been searching that land for 30 years.’
After four days of careful digging the hoard was hauled to the surface by crane. It will now be subject of an inquest to determine ownership rights.
 

Morgan’s big secret The coming muni-bond crisis

http://www.nypost.com/p/news/opinion/opedcolumnists/morgan_big_secret_DSB0O9VFZwDih1ZrjkeaAN

While the Senate Banking Committee last week spun its wheels trying to get JP Morgan chief Jamie Dimon to admit to something nefarious during testimony about his “London Whale” trading loss, executives at the big bank were concealing a far bigger scandal.
OK, it’s no secret that nation’s public pension funds are in big trouble, holding large “unfunded” liabilities owed to public workers once they retire. But most politicians (New Jersey Gov. Chris Christie is an exception) will tell you the problem is fairly containable, that there are simple fixes — such as raising taxes on the rich or pruning benefits.

Tax cheats got $1.4 billion in stimulus loans - Washington Times

Tax cheats got $1.4 billion in stimulus loans - Washington Times


Tax cheats were given $1.4 billion in government-backed mortgage loans under President Obama’s economic stimulus, and the government doled out at least an additional $27 million in tax credits to delinquents who took the first-time-homebuyer tax break, according to a government audit released Wednesday.
Under government rules, delinquent taxpayers are supposed to be ineligible for the mortgage insurance program unless they have reached a repayment agreement with the Internal Revenue Service. But the Federal Housing Administration didn’t have the right controls to weed out bad applications, said the Government Accountability Office, Congress‘ chief investigative arm.

ITALY SETS UP CLASH WITH GERMANY - FT’s

  Guy Dinmore and Giulia Segreti in Rome and Peter Spiegel in Brussels: “Mario Monti has set the stage for a tough fight with Germany at the EU summit this week, insisting that he will continue to push Italy’s proposal to use eurozone bailout funds in an attempt to stabilise financial markets. Italy’s technocratic prime minister’s frustration with Germany surfaced in a combative speech to parliament, saying he would not go to Brussels to ‘rubber-stamp’ pre-written documents and was ready to extend the two-day summit until Sunday night if needed to reach agreements before markets reopen on Monday ...
“Singling out Jens Weidmann by name, Mr Monti said the Bundesbank president had ‘badly misunderstood’ his proposal to deploy eurozone rescue funds to bring down the borrowing costs of countries such as Italy and Spain that had honoured obligations to implement reforms and bring down their budget deficits” 

Monti lashes out at Germany ahead of summit - FT.com

Big banks craft living wills in case they fail | Reuters

Big banks craft living wills in case they fail
| Reuters



Five of the biggest banks in the United States are putting finishing touches on plans for going out of business as part of government-mandated contingency planning that could push them to untangle their complex operations.
The plans, known as living wills, are due to regulators no later than July 1 under provisions of the Dodd-Frank financial reform law designed to end too-big-to-fail bailouts by the government. The living wills could be as long as 4,000 pages.

Pending home sales surge 5.9% in May to 2-yr high

http://www.marketwatch.com/story/pending-home-sales-surge-59-in-may-to-2-yr-high-2012-06-27

Pending home sales climbed 5.9% in May to match a two-year high, a trade group said Wednesday. The National Association of Realtors said its pending-home-sales index rose to 101.1 in May from 95.5 in April. The index is 13.3% above May 2011 levels. May marked the highest level since the scheduled expiration of the home buyer tax credit in April 2010. A sale is listed as pending when the contract has been signed but the transaction has not closed. An index of 100 is equal to the average level of contract activity during 2001.

Barclays paying about $450 million to settle U.S. and U.K. charges of LIBOR 'misconduct'



Barclays Settles Regulators' Claims Over Manipulation of Key Rate - NYTimes.com

Orders for U.S. durable goods rise 1.1% in May

http://www.marketwatch.com/story/orders-for-us-durable-goods-rise-11-in-may-2012-06-27?link=MW_home_latest_news

Orders for long-lasting U.S. goods rose 1.1% in May after falling in the prior two months, the Commerce Department said Wednesday. Economists surveyed by MarketWatch had expected orders to be unchanged. The biggest increase occurred in the commercial-aircraft segment, with bookings up 4.9%. Omitting the transportation sector, orders rose 0.4%. Orders for core capital goods excluding defense and transportation, a key barometer of U.S. business spending, climbed 1.6% last month to mark the first gain since February. Orders for April were revised down to a 0.2% decline from a prior reading of no change

CNN Sinks To 21-Year Primetime Ratings Low In Second Quarter - Deadline.com

CNN Sinks To 21-Year Primetime Ratings Low In Second Quarter - Deadline.com
For this year’s second quarter, CNN hit a low among total viewers and the key adults 25-54 demographic, with all primetime programs posting steep declines. The network averaged 446,000 total viewers and 129,000 in the 25-54 demo in primetime. Compared to last year’s second quarter, that’s down 35% and 41%, respectively. Rival Fox New Channel, meanwhile, with 1.79 million primetime total viewers on average, was down 1% from its 2011 second-quarter numbers. FNC lost 14% in the 25-54, bringing in 355,000 viewers. MSNBC was down 13% in total primetime viewers, with 689,000 on average, and down 17% in the 25-54 with 217,000. The quarter ran March 26-June 22...
Anderson Cooper took a double hit: Anderson Cooper 360 at 8 PM was down 23% in the 25-54 and 19% in total viewers, and its 10 PM airing was down 48% in the demo and 44% in viewers. The top-rated cable news shows for the second quarter were all FNC shows, with The O’Reilly Factor and Hannity sitting at No. 1 and No. 2.


Spreading lies and cutting news feeds and working as Puppets for all these years,  no sympathy here.

( Insert toilet flushing noise )

Stockton, California to file for bankruptcy | Reuters

UPDATE 3-Stockton, California to file for bankruptcy
| Reuters

Bankruptcy could be filed as soon as Wednesday
  • Stockton has $700 mln outstanding debt
  • Talks with 18 creditors ended Monday without concessions

Euro by the numbers

Italian Business Confidence (Jun) M/M 88.9 vs Exp. 85.5 (Prev. 86.2)

Norwegian Unemployment Rate (AKU) (Apr) M/M 3.0% vs. Exp. 3.0% (Prev. 3.0%)

Spanish Adjusted Real Retail Sales (May) M/M -4.9% vs Exp. -8.1% (Prev. -9.8%, Rev. -10.0%)
Spanish Real Retail Sales (Real) (May) M/M -4.3% (Prev. -11.3%, Rev. -11.5%)

German Import Price Index (May) M/M -0.7% vs Exp. -0.6% (Prev. -0.5%)
German Import Price Index (May) Y/Y 2.3% vs Exp. 2.2% (Prev. 2.3%)

German CPI - Hesse (Jun) M/M 0.0% (Prev. -0.2%)
German CPI – Hesse (Jun) Y/Y 1.8% (Prev. 1.9%)
... />German CPI - Brandenburg (Jun) M/M -0.1% (Prev. -0.2%)
German CPI – Brandenburg (Jun) Y/Y 1.8% (Prev. 2.0%)

German CPI - Saxony (Jun) M/M -0.1% (Prev. -0.2%)
German CPI – Saxony (Jun) Y/Y 1.7% (Prev. 1.9%


 Italy sells EUR 9.00bln in a 6-month BoT with a B/C of 1.615 (Prev. 1.61), yield 2.957% (Prev. 2.104%); highest yield since December

Last tap of 6-month bills was in May this year.

EU approves Spanish state aid to Bankia (BKIA SM) on a temporary basis

German budget committee approves the ESM and fiscal pact with a large majority

EU's Barnier says a banking union is the first step to integration
- UK must be part of a banking supervision plan.

Bank of Cyprus says they will not fully cover capital needs at June 30th; will increase provisions for bad loans in Q2

Finnish PM says Finland demands collateral for Cypriot bailout if the EFSF is used 

THE financial crisis will last at least five more years, the Bank of England governor warned yesterday

Financial crisis will last at least five more years, Bank of England governor Sir Mervyn King warns - Mirror Online

"THE financial crisis will last at least five more years, the Bank of England governor warned yesterday.
Sir Mervyn King’s grim assessment came as Chancellor George Osborne’s economic plans were shredded by new figures showing a shock rise in borrowing....And Sir Mervyn told MPs he didn’t think the UK was “halfway though” the crisis, which started with the 2007 credit crunch.
Speaking to the Commons Treasury committee, the governor added: “My ­estimates of how long it will take to recover is expanding all the time."

The Tale of a Tainted Tenner by O. Henry

Money talks. But you may think that the conversation of a little old
ten-dollar bill in New York would be nothing more than a whisper.
Oh, very well! Pass up this autobiography of an X if
you like. If you are one of the kind that prefers to listen to John
D's checkbook roar at you through a megaphone as it passes by, all
right. But don't forget that small change can say a word to the
point now and then. The next time you tip your grocer's clerk a
silver quarter to give you extra weight of his boss's goods read the
four words above the lady's head. How are they for repartee? I am a ten-dollar Treasury note, series of 1901. You may have seen
one in a friend's hand. On my face, in the centre, is a picture of
the bison Americanus, miscalled a buffalo by fifty or sixty millions
of Americans. The heads of Capt. Lewis and Capt. Clark adorn the
ends. On my back is the graceful figure of Liberty or Ceres or
Maxine Elliot standing in the centre of the stage on a conservatory
plant. My references is--or are--Section 3,588, Revised Statutes.
Ten cold, hard dollars--I don't say whether silver, gold, lead or
iron--Uncle Sam will hand you over his counter if you want to cash
me in.
The Tale of a Tainted Tenner by O. Henry

Nicosia 'the dog in charge of the sausages'?

Eurozone crisis live: Merkel to address German parliament | Business | guardian.co.uk
Wednesday 27 June
Nicosia 'the dog in charge of the sausages'?
"Cyprus taking over the rotating EU presidency on Sunday after it sought an emergency bailout has been likened to putting a dog in charge of the sausages.
Kurt Lauk, president of the economic advisory board linked to Merkel's center-right Christian Democrats, said:
This is the paradox of the European Union, that the dog should be put in charge of the supply of sausages!"
Eurozone top dogs say they must have teeth | News | DW.DE | 26.06.2012

Tuesday, June 26, 2012

Abercrombie & Fitch Co. - 180 Stores

Clothing retailers plan to close 180 more stores -
Wire
- NewsObserver.com

The historic Democratic banking policy / “Watson’s Magazine”, January 1909

“President Garfield once said that whoever controls the supply of currency and bank credit will largely control all American business. Thomas Jefferson, when opposing the issuing of public currency by a private central bank, declared that a private bank issuing and controlling the volume of the public currency would be more dangerous to the country and the liberties of the people than a standing army. Andrew Jackson when President took the same position. That, historically, is the Democratic policy. It is now the view of the progressives of all parties.” Alfred O. Crozier, March 2, 1913

Banking and currency: Hearings before the Committee on banking and currency, United States Senate, Sixty-third Congress, first session, on H.R. 7837 (S. 2639) (1913), pg. 1465 


One controls the wealth, the other produces it.

From “Watson’s Magazine”, January 1909





Wall Street Food Chain

http://www.pimco.com/EN/Insights/Pages/Wall-Street-Food-Chain.aspx


  • Soaring debt/GDP ratios in previously sacrosanct AAA countries have made low cost funding increasingly a function of central banks as opposed to private market investors.
  • Both the lower quality and lower yields of such previously sacrosanct debt represent a potential breaking point in our now 40-year-old global monetary system.
  • Bond investors should favor quality and “clean dirty shirt” sovereigns (U.S., Mexico and Brazil), for example, as well as emphasize intermediate maturities that gradually shorten over the next few years. Equity investors should likewise favor stable cash flow global companies and ones exposed to high growth markets.​

From the Richmond Fed: Manufacturing Activity Eased in June, But Expectations Remained Upbeat

From the Richmond Fed: Manufacturing Activity Eased in June, But Expectations Remained Upbeat

 Manufacturing activity in the central Atlantic region softened in June, following six months of moderate expansion, according to the Richmond Fed's latest survey.

In June, the seasonally adjusted composite index of manufacturing activity — our broadest measure of manufacturing — lost seven points to −3 from May's reading of 4. Among the index's components, shipments declined two points to −2, new orders dropped thirteen points to end at −12, and the jobs index moved down eight points to 8.

 And from the Conference Board: The Conference Board Consumer Confidence Index® Declines Again

 The Conference Board Consumer Confidence Index®, which had declined in May, fell further in June. The Index now stands at 62.0 (1985=100), down from 64.4 in May. The Expectations Index declined to 72.3 from 77.3. The Present Situation Index, however, increased to 46.6 from 44.9 last month.

Treasury Aims to Raise $220 Million Auctioning Stakes in 7 TARP Banks | Daniel Gross - Yahoo! Finance

Treasury Aims to Raise $220 Million Auctioning Stakes in 7 TARP Banks | Daniel Gross - Yahoo! Finance

Fears over safety at other banks as AIB, NIB hit by 'glitches'

Fears over safety at other banks as AIB, NIB hit by 'glitches'

Inflation Makes Big Incomes Smaller - Yahoo! Finance

Inflation Makes Big Incomes Smaller - Yahoo! Finance

By Craig Guillot |
According to Labor Department statistics, the average inflation rate for 2011 was the worst since 2008, with consumer prices rising 3.1 percent, compared to an average of 1.6 percent in 2010. Much of this was fueled by energy costs (up 15.2 percent for the year) and food costs (up 3.7 percent for the year). Just to keep up with standard inflation, a $100,000 salary in 1990 would have to be $172,103.29 in 2011.
“What would have cost you $100,000 in 1976 would cost you $381,000 today. That’s just the inflation, and there are so many other things that have grown very expensive,” says Mari Adam, Certified Financial Planner and president of Adam Financial Associates in Boca Raton, Fla

Spain Poised for Downgrade to Junk as Default Swaps Near Records - Bloomberg

Spain Poised for Downgrade to Junk as Default Swaps Near Records - Bloomberg

The PigMen are licking their chops...



Bank bailout to spark firesale of corporate Spain
| Reuters


The European bailout for Spain's banks will push them to sell an empire of stakes in the nation's top companies, ending a cozy culture of corporate-banking links and prompting a wider shake-up in ownership of the company landscape.
A flock of "vulture" funds is already watching over the banking sector shakeout in the hope that it will finally deliver a bonanza of distressed company assets at rock bottom prices.

Lennar Said to Discuss $1 Bln Loan From China Development - Bloomberg

Lennar Said to Discuss $1 Bln Loan From China Development - Bloomberg

 So when Lennar goes bk then China finds itself with lots of US real estate. Win.

"The not-printing will continue until ___________________"



Secondary bond markets: 'Bye and hold'

Who Destroyed the Middle Class -- Part 3 – Jim Quinn, Burning Platform

Who Destroyed the Middle Class -- Part 3 – Jim Quinn, Burning Platform

Prior post

 Who Destroyed the Middle Class? – Jim Quinn, Burning Platform

 Who Destroyed the Middle Class, Part 2 – Jim Quinn, Burning Platform

McAfee discovers $78 million worth of sophisticated cyber attacks against banking systems | The Verge

McAfee discovers $78 million worth of sophisticated cyber attacks against banking systems | The Verge
 Security firms McAfee and Guardian Analytics have published a joint fraud report, dubbed Operation High Roller, on new methods of siphoning money from banking systems. Using a series of highly sophisticated cyber attacks to target high balance accounts, criminals have been able to successfully bypass physical "chip and pin" authentication and use server-based fraudulent transactions to steal money from a number of accounts in Europe. The attacks originated in Italy, using SpyEye and Zeus malware to transfer funds into fraudulent accounts.

Britain extends credit-easing scheme to big firms | Reuters

Britain extends credit-easing scheme to big firms
| Reuters



Britain is to expand its credit-easing scheme for small businesses to include larger firms and will also give banks more options to access state-guaranteed funds to boost take-up, finance minister George Osborne said on Tuesday.
The move comes as the government faces growing calls to stimulate Britain's flagging economy, which is suffering its second recession in four years.
Policymakers have highlighted a lack of credit as a major obstacle to Britain's recovery.

M2 Money Stock (M2) - FRED - St. Louis Fed

And in further news that up is down, in refutation of Ed Yardeni's take on M-2, and even tho Ben is running out of bullets for Operation Twist, here's the latest take by the St Louis Fed on M-2 thru June 11th:

M2 Money Stock (M2) - FRED - St. Louis Fed

The American Dream Is Now a Myth: Joseph Stiglitz - Yahoo! Finance

The American Dream Is Now a Myth: Joseph Stiglitz - Yahoo! Finance

According to Stiglitz, regulations, particularly those governing the financial sector are contributing to the disparities.
"Financial regulations allow predatory lending and abusive credit-card practices that transfer money from the bottom to the top. So do bankruptcy laws that provide priority for derivatives," he said.
Stiglitz argues that Americans were increasingly being made to think that higher income inequality was a byproduct of faster growth, but he says that's a false choice. The U.S. economy grew faster in the decades after the Second World War, when inequalities were lower, than it did after 1980, he said.
"Textbooks teach us that we can have a more egalitarian society only if we give up growth or efficiency," he said. "However, closer analysis shows that we are paying a high price for inequality: it contributes to social, economic and political instability, and to lower growth."

Dating crises: The cruelest month of the cruelest year | The Economist

Dating crises: The cruelest month of the cruelest year | The Economist

Consumer-confidence gauge declines to 62 in June

http://www.marketwatch.com/story/consumer-confidence-gauge-declines-to-62-in-june-2012-06-26-1091029?link=MW_latest_news

U.S. consumer confidence has declined for a fourth month, with gloomier views in June on future business conditions and income, the Conference Board reported Tuesday. The consumer-confidence index fell to 62 in June -- the lowest level since January -- from a revised 64.4 in May. A prior estimate for May had pegged the level at 64.9. "If this trend continues, spending may be restrained in the short-term," said Lynn Franco, director of economic indicators at the Conference Board, a private research group. Meanwhile, consumers' views on the present situation rose in June. Overall, the data suggest that there may be "little change" in the pace of near-term economic activity, Franco said. Generally when the economy is growing at a good clip, confidence readings are at least 90. Economists polled by MarketWatch had expected confidence to decline to 63 in June, driven by weak jobs data, and ongoing political and economic challenges.

FT Alphaville » On price stability during an ‘abundance shock’

FT Alphaville » On price stability during an ‘abundance shock’

Everybody loves price stability.
Everybody expects price stability.
Everybody believes price stability is something they are entitled to.
But what if price stability comes at a cost? What if the act of enforcing price stability transforms what should be a variable into a constant at the cost of bleeding variability and volatility elsewhere?
What if price stability isn’t what we thought it was.