Merk Insights - U.S. of A(sia) - United to Weaken the Dollar?!
In the past few weeks, Bernanke has become ever more vocal in
encouraging emerging market countries to allow their currencies to
appreciate against the dollar; and Obama and Romney have both been
advocating for a weaker dollar versus specifically the Chinese RMB. In
the recent presidential debates Romney continued his call for declaring
China a currency manipulator, and Obama proudly stated that the RMB had
appreciated 11% against the dollar since he took office. It has actually
been about 9% according to the data we look at; nevertheless, the point
that both were clearly trying to make is that a weaker U.S. dollar is
in our economic best interests. Likewise, in an IMF speech
Bernanke essentially admitted that accommodative monetary policy in the
U.S. causes upward pressure on foreign exchange rates between emerging
market currencies and the dollar, and suggested that foreign central
banks allow that dollar depreciation to take hold, rather than intervene
to prevent it.
Wednesday, October 31, 2012
Gold being remonetised as banks in Turkey target gold worth $302 billion – GoldCore
Gold being remonetised as banks in Turkey target gold worth $302 billion – GoldCore
Today’s AM fix was USD 1,713.50, EUR 1,322.66, and GBP 1,067.07 per ounce.
Yesterday’s AM fix was USD 1,712.00, EUR 1,326.72, and GBP 1,066.00 per ounce.
Silver is trading at $32.01/oz, €24.80/oz and £19.99/oz. Platinum is trading at $1,551.50/oz, palladium at $593.25/oz and rhodium at $1,075/oz.
U.S. stock and bond markets were closed Monday due to Hurricane Sandy. Futures markets remained open. Stock and bond Markets will be closed today as well. The worst storms to have ever hit the East coast of the U.S. are estimated to have cost some $200 billion in damages and for the first time in more than a century, weather has stopped U.S. equity trading for two straight days.
Today’s AM fix was USD 1,713.50, EUR 1,322.66, and GBP 1,067.07 per ounce.
Yesterday’s AM fix was USD 1,712.00, EUR 1,326.72, and GBP 1,066.00 per ounce.
Silver is trading at $32.01/oz, €24.80/oz and £19.99/oz. Platinum is trading at $1,551.50/oz, palladium at $593.25/oz and rhodium at $1,075/oz.
U.S. stock and bond markets were closed Monday due to Hurricane Sandy. Futures markets remained open. Stock and bond Markets will be closed today as well. The worst storms to have ever hit the East coast of the U.S. are estimated to have cost some $200 billion in damages and for the first time in more than a century, weather has stopped U.S. equity trading for two straight days.
Full Retard
Headline from CNBC: "MasterCard revenue misses for second time as consumer spending slows" Here's the MasterCard revenue misses for second time as consumer spending slows - CNBC
Headline from Reuters: "MasterCard profit beats as consumers feel more confident" Here's the
MasterCard profit beats as international business grows
| Reuters
Enron would be proud..
Headline from Reuters: "MasterCard profit beats as consumers feel more confident" Here's the
MasterCard profit beats as international business grows
| Reuters
Oklahoma Prepares for Open Carry Gun Law - NY Times
Oklahoma Prepares for Open Carry Gun Law - NY Times
Advocates for gun rights said the ability to “open carry” would deter crime and eliminate the risks of a wardrobe mishap, such as when someone carrying a concealed weapon breaks the law by accidentally exposing the firearm. But the new law is a symbolic as well as practical victory. Supporters said there was no better advertisement for the Second Amendment than to have thousands of responsible adults openly carrying their weapons in a highly visible fashion.
Advocates for gun rights said the ability to “open carry” would deter crime and eliminate the risks of a wardrobe mishap, such as when someone carrying a concealed weapon breaks the law by accidentally exposing the firearm. But the new law is a symbolic as well as practical victory. Supporters said there was no better advertisement for the Second Amendment than to have thousands of responsible adults openly carrying their weapons in a highly visible fashion.
Many banks seeing "strengthening of demand"
From the Federal Reserve: The October 2012 Senior Loan Officer Opinion Survey on Bank Lending Practices
In the October survey, small fractions of domestic banks, on net, reported easing standards for business lending and some categories of consumer lending over the past three months. Respondents reported little change in residential real estate lending standards on balance. Significant fractions of banks reported a strengthening of demand for commercial real estate loans, residential mortgages, and auto loans, on balance, while demand for most other types of loans was about unchanged.
Valero Idles Nebraska, Indiana Ethanol Mills on Poor Margins - Bloomberg
Valero Idles Nebraska, Indiana Ethanol Mills on Poor Margins - Bloomberg
Valero Energy Corp. (VLO), the third- biggest U.S. ethanol producer, idled its distilleries in Albion, Nebraska, and Linden, Indiana, until it’s profitable for the plants to produce the fuel.
The mills each have capacity to produce 120 million gallons of the fuel, annually, and were shut earlier this year because of the poor margins before San Antonio-based Valero restarted them in September.
“They’ll restart once margins improve to a point where it’s economically feasible to run them,” Bill Day, a company spokesman in San Antonio, said in an e-mail.
Corn is the main ingredient for the alternative fuel in the U.S., with one bushel distilling into at least 2.75 gallons of ethanol. The worst U.S. drought in 56 years scorched crops for the grain and has boosted prices 15 percent this year.
Denatured ethanol for November delivery advanced 2.8 cents, or, 1.2 percent, to settle at $2.413 a gallon today on the Chicago Board of Trade. Futures have gained 9.5 percent this year.
Valero Energy Corp. (VLO), the third- biggest U.S. ethanol producer, idled its distilleries in Albion, Nebraska, and Linden, Indiana, until it’s profitable for the plants to produce the fuel.
The mills each have capacity to produce 120 million gallons of the fuel, annually, and were shut earlier this year because of the poor margins before San Antonio-based Valero restarted them in September.
“They’ll restart once margins improve to a point where it’s economically feasible to run them,” Bill Day, a company spokesman in San Antonio, said in an e-mail.
Corn is the main ingredient for the alternative fuel in the U.S., with one bushel distilling into at least 2.75 gallons of ethanol. The worst U.S. drought in 56 years scorched crops for the grain and has boosted prices 15 percent this year.
Denatured ethanol for November delivery advanced 2.8 cents, or, 1.2 percent, to settle at $2.413 a gallon today on the Chicago Board of Trade. Futures have gained 9.5 percent this year.
OUTRAGE: Feds Are Attempting to Take Innocent Elderly Couple's Mom-and-Pop Motel
The most contentious civil forfeiture fight in the nation will be the subject of a week-long trial starting Monday, November 5, 2012, in Boston. Throughout the week, the Institute for Justice, which represents the property owners in the case, will expose the ugly practice of civil forfeiture—where law enforcement agencies can pad their budgets by taking property from innocent owners who have never been convicted or even charged with a crime.
I've been following this story. It's a travesty of justice that they're even considering taking it from him.
Judas Christie
The Republican establishment is calling New Jersey Governor Chris
Christie, Judas Christie, as he prances over puddles with President
Obama, as they both pretend to be playing important roles in the
recovery from Hurricane Sandy.
Christie is a big government statist just like the rest of them. No surprises here. Christie & Obamney see eye to eye on nearly everything.
Christie is a big government statist just like the rest of them. No surprises here. Christie & Obamney see eye to eye on nearly everything.
New ADP Count Slashes Job Creation Total for September - US Business News - CNBC
New ADP Count Slashes Job Creation Total for September - US Business News - CNBC
The new private payroll count now is actually under Labor's September job creation total of 114,000, 104,000 of which came from the private sector. The unemployment rate dropped last month to 7.8 percent, as the government said the total number of new workers swelled by 873,000. (Read More: Consumer Prices Rise on Energy Surge; No Pay Gains)
The new private payroll count now is actually under Labor's September job creation total of 114,000, 104,000 of which came from the private sector. The unemployment rate dropped last month to 7.8 percent, as the government said the total number of new workers swelled by 873,000. (Read More: Consumer Prices Rise on Energy Surge; No Pay Gains)
Economists expect Friday's report to show 125,000 new jobs and the jobless rate to hold steady.
House panel to release results of MF Global review - MarketWatch
House panel to release results of MF Global review - MarketWatch
A House Financial Services subcommittee is expected to report the results of a year-long investigation into the collapse of MF Global "in the next few weeks," according to a statement Wednesday. New York-based MF Global filed for bankruptcy last year, leading to $1.6 billion in missing customer funds. "Our investigation is essentially an autopsy of how MF Global came to its ultimate demise and what policy changes need to be made to prevent similar customer losses in the future," said Rep. Randy Neugebauer, Republican from Texas and the chairman of the subcommittee conducting the review. According to a release, the panel has conducted three hearings, more than 50 interviews and reviewed over 240,000 documents in its investigation
A House Financial Services subcommittee is expected to report the results of a year-long investigation into the collapse of MF Global "in the next few weeks," according to a statement Wednesday. New York-based MF Global filed for bankruptcy last year, leading to $1.6 billion in missing customer funds. "Our investigation is essentially an autopsy of how MF Global came to its ultimate demise and what policy changes need to be made to prevent similar customer losses in the future," said Rep. Randy Neugebauer, Republican from Texas and the chairman of the subcommittee conducting the review. According to a release, the panel has conducted three hearings, more than 50 interviews and reviewed over 240,000 documents in its investigation
Biden: "I'm Going To Give You The Whole Load Today"
Biden tells an entire audience filled with Women "I'm Going To Give You The Whole Load Today"..I am embarrassed for America that this Jackass holds any elected office
much less the vice presidency of the United States of America.
CoreLogic Reports 57,000 Completed Foreclosures in September
CoreLogic ... today released its National Foreclosure Report for September that provides monthly data on completed U.S. foreclosures and the overall foreclosure inventory. According to the report, there were 57,000 completed foreclosures in the U.S. in September 2012, down from 83,000 in September 2011 and 59,000 in August 2012. Prior to the decline in the housing market in 2007, completed foreclosures averaged 21,000 per month between 2000 and 2006. Completed foreclosures are an indication of the total number of homes actually lost to foreclosure. Since the financial crisis began in September 2008, there have been approximately 3.9 million completed foreclosures across the country.
Approximately 1.4 million homes, or 3.3 percent of all homes with a mortgage, were in the national foreclosure inventory as of September 2012 compared to 1.5 million, or 3.5 percent, in September 2011. Month-over-month, the national foreclosure inventory was down 1.1 percent from August 2012 to September 2012. The foreclosure inventory is the share of all mortgaged homes in any stage of the foreclosure process.
“The continuing downward trend in foreclosures along with a gradual clearing of the shadow inventory are signs
...
“Homes lost to foreclosure in September 2012 are down 50 percent since the peak month in September 2010 and 22 percent less than the beginning of the year,” said Mark Fleming, chief economist for CoreLogic. “While there is significant progress to be made before returning to pre-crisis levels, the trend is in the right direction as short sales, up 27 percent year over year in August, continue to gain popularity.”
Federal Reserve Announces Reserve Requirement Thresholds for 2013
In 2013 the first $12.4 million in net transaction accounts will be exempt from reserve requirements. The low reserve tranche, which includes net transaction accounts over $12.4 million and up to $79.5 million, will be subject to a 3 percent reserve ratio. Amounts in excess of $79.5 million will be assessed a 10 percent reserve ratio.
The current requirements are the same;
| Reserve Requirements | ||
|---|---|---|
| Liability Type | Requirement | |
| % of liabilities | Effective date | |
| Net transaction accounts 1 | ||
| $0 to $12.4 million2 | 0 | 12-27-12 |
| More than $12.4 million to $79.5 million3 | 3 | 12-27-12 |
| More than $79.5 million | 10 | 12-27-12 |
| Nonpersonal time deposits | 0 | 12-27-90 |
| Eurocurrency liabilities | 0 | 12-27-90 |
The A-List: Time to decide whether Greece is in or out of the euro
The A-List
The focus is back on the debt crisis in Greece where a three party governing coalition is struggling to come up with a new economic reform programme that can secure parliamentary approval. Meanwhile governments, such as Germany’s, that extend support to Athens, are considering how best to approach their own legislatures with Greece’s request for even more aid.
We expect the various European officials to find a way to sort all this out over the next few weeks – not because they believe in the outright merit of what they are doing but because they fear the alternatives. But that means lots of unsatisfactory and unsustainable compromises. And by failing to address the underlying issues, yet another Greek rescue will stand no greater chance of success than previous ones. Meanwhile the trust of Greek citizens in the credibility of government and institutions will erode further.
The focus is back on the debt crisis in Greece where a three party governing coalition is struggling to come up with a new economic reform programme that can secure parliamentary approval. Meanwhile governments, such as Germany’s, that extend support to Athens, are considering how best to approach their own legislatures with Greece’s request for even more aid.
We expect the various European officials to find a way to sort all this out over the next few weeks – not because they believe in the outright merit of what they are doing but because they fear the alternatives. But that means lots of unsatisfactory and unsustainable compromises. And by failing to address the underlying issues, yet another Greek rescue will stand no greater chance of success than previous ones. Meanwhile the trust of Greek citizens in the credibility of government and institutions will erode further.
Police allowed to install cameras on private property without warrant | Ars Technica
Police allowed to install cameras on private property without warrant | Ars Technica
A federal judge has ruled that police officers in Wisconsin did not violate the Fourth Amendment when they secretly installed cameras on private property without judicial approval.
The officers installed the cameras in an open field where they suspected the defendants, Manuel Mendoza and Marco Magana, were growing marijuana. The police eventually obtained a search warrant, but not until after some potentially incriminating images were captured by the cameras. The defendants have asked the judge to suppress all images collected prior to the issuance of the search warrant.
They won when the Patriot act was signed, and they finished us off when it was expanded and then NDAA was signed. So I guess we can also do the same at their homes and place of business as well correct?
I've said it before...Any time the politicians declare 'war' on something (poverty, drugs, terror, etc) our money and freedoms go out the window.
A federal judge has ruled that police officers in Wisconsin did not violate the Fourth Amendment when they secretly installed cameras on private property without judicial approval.
The officers installed the cameras in an open field where they suspected the defendants, Manuel Mendoza and Marco Magana, were growing marijuana. The police eventually obtained a search warrant, but not until after some potentially incriminating images were captured by the cameras. The defendants have asked the judge to suppress all images collected prior to the issuance of the search warrant.
They won when the Patriot act was signed, and they finished us off when it was expanded and then NDAA was signed. So I guess we can also do the same at their homes and place of business as well correct?
I've said it before...Any time the politicians declare 'war' on something (poverty, drugs, terror, etc) our money and freedoms go out the window.
If Obamacare Stays Intact, You'll Be Required to Disclose Your Personal Health ID Number to the IRS
If President Obama is re-elected, Obamacare will continue to go into effect piece by piece. By now, you already know about the 20 new or higher taxes in the bill, but most Americans are not yet aware of the intrusive role the IRS will play in enforcing Obamacare.
Starting in 2014, all Americans who file income tax returns must complete an additional IRS tax form- the Obamacare Individual Mandate Tax Compliance form (See below).Under the Obamacare mandate provision, you must disclose your personal health ID information to the IRS.The below from is a representation of the information and type of form Norquist expects that tax filers will have to fill out.
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&ved=0CDIQFjAD&url=http%3A%2F%2Fs3.amazonaws.com%2Fatrfiles%2Ffiles%2Ffiles%2Fwolf_final.pdf&ei=pU-RUIPKJcS80QGHrIGgDQ&usg=AFQjCNF0iboo_DeQ6aQdvT0UyK4Gx1FiaQ
Investors give the president some bad news - Political Watch - MarketWatch
Investors give the president some bad news - Political Watch - MarketWatch
Nearly two-thirds (64.2%) of the 1,005 investors who responded to the survey plan to vote for former Massachusetts Gov. Mitt Romney, versus only 27% who expect to cast their votes for the president; 8.6% of those surveyed said they were still undecided.
That’s actually a slight improvement for President Obama since our first poll six months ago, when Romney topped the president by 76%-24%, beating the incumbent by more than three to one.
And by 57% to 43%, the respondents to our current poll said they thought Gov. Romney would be elected. They also overwhelmingly expect Republicans to retain control of the House of Representatives and, by 56% to 44%, look for Democrats to keep the US Senate.
Nearly two-thirds (64.2%) of the 1,005 investors who responded to the survey plan to vote for former Massachusetts Gov. Mitt Romney, versus only 27% who expect to cast their votes for the president; 8.6% of those surveyed said they were still undecided.
That’s actually a slight improvement for President Obama since our first poll six months ago, when Romney topped the president by 76%-24%, beating the incumbent by more than three to one.
And by 57% to 43%, the respondents to our current poll said they thought Gov. Romney would be elected. They also overwhelmingly expect Republicans to retain control of the House of Representatives and, by 56% to 44%, look for Democrats to keep the US Senate.
Chicago PMI: Activity "Idled"
From the Chicago ISM:
October 2012: The Chicago Purchasing Managers reported October's Chicago Business Barometer idled, up just 0.2 to a still contractionary 49.9.
Business Activity measures reflected weakness in five of seven indexes, most notably as the rate of expansion in Production and Employment slowed while New Orders stalled near neutral and Order Backlogs remained in contraction.
EMPLOYMENT: 33 month low;
INVENTORIES: slipped into contraction;
PRICES PAID: inflation slowed a bit;
The HSBC Czech Republic Manufacturing PMI
Poland did better than Czech Republic
The HSBC Czech Republic Manufacturing PMI is a
composite single-figure indicator of manufacturing
performance. The PMI remained below the no-change
mark of 50.0 in October, extending the current
sequence of sub-50.0 readings to seven months.
Moreover, the pace of deterioration signalled by the
headline figure gathered further momentum, as the PMI
fell from 48.0 to 47.2, the lowest since August 2009.
http://www.markiteconomics.com/MarkitFiles/Pages/ViewPressRelease.aspx?ID=10214
The HSBC Czech Republic Manufacturing PMI is a
composite single-figure indicator of manufacturing
performance. The PMI remained below the no-change
mark of 50.0 in October, extending the current
sequence of sub-50.0 readings to seven months.
Moreover, the pace of deterioration signalled by the
headline figure gathered further momentum, as the PMI
fell from 48.0 to 47.2, the lowest since August 2009.
http://www.markiteconomics.com/MarkitFiles/Pages/ViewPressRelease.aspx?ID=10214
HSBC Poland Manufacturing PMI
The headline HSBC Poland Manufacturing PMI®, a
composite single-figure indicator of manufacturing
performance, remained below neutrality for the seventh
consecutive month in October. The PMI improved
fractionally to 47.3, from September’s 38-month low of
47.0, but the latest figure was still the second-lowest in
the current sequence of sub-50.0 readings.
http://www.markiteconomics.com/MarkitFiles/Pages/ViewPressRelease.aspx?ID=10218
composite single-figure indicator of manufacturing
performance, remained below neutrality for the seventh
consecutive month in October. The PMI improved
fractionally to 47.3, from September’s 38-month low of
47.0, but the latest figure was still the second-lowest in
the current sequence of sub-50.0 readings.
http://www.markiteconomics.com/MarkitFiles/Pages/ViewPressRelease.aspx?ID=10218
Navistar to close Texas truck plant, cut 900 jobs - chicagotribune.com
Navistar to close Texas truck plant, cut 900 jobs - chicagotribune.com
Navistar International Corp. said Tuesday it intends to close a truck assembly plant in Garland, Texas, by the first half of 2013 as part of its efforts to cut costs.
"Closing a facility is always difficult because of its impact on the many great people who've been part of our company," Troy Clarke, Navistar president and chief operating officer, said in a statement. "But the fact is that Navistar has too much manufacturing capacity in North America, and we must take quick action to improve our business and position the company for long-term success."
Navistar International Corp. said Tuesday it intends to close a truck assembly plant in Garland, Texas, by the first half of 2013 as part of its efforts to cut costs.
"Closing a facility is always difficult because of its impact on the many great people who've been part of our company," Troy Clarke, Navistar president and chief operating officer, said in a statement. "But the fact is that Navistar has too much manufacturing capacity in North America, and we must take quick action to improve our business and position the company for long-term success."
Nova Financial Files to Liquidate Under Chapter 7 - Businessweek
Nova Financial Files to Liquidate Under Chapter 7 - Businessweek
The Chapter 7 petition for the bank holding company, filed in U.S. bankruptcy court in Philadelphia, listed assets of as much as $100,000 and debt of as much as $50 million. Nova Bank had about $483 million in assets and $432 million in deposits as of June 30, according to a Federal Deposit Insurance Corp. statement.
Nice leverage....
The Chapter 7 petition for the bank holding company, filed in U.S. bankruptcy court in Philadelphia, listed assets of as much as $100,000 and debt of as much as $50 million. Nova Bank had about $483 million in assets and $432 million in deposits as of June 30, according to a Federal Deposit Insurance Corp. statement.
Nice leverage....
Treasury sees debt-limit reached near end of year
Treasury sees debt-limit reached near end of year - MarketWatch
Treasury said it expects the first floating-rate auction to be at least one year away.
It said no decision had been made about allowing negative rates at bill auctions.
The comments came as the Treasury announced it would sell $72 billion in
notes and bonds next week in its quarterly refunding auctions.
Ex-Goldman director Rajat Gupta sentenced to 2 years in prison - Los Angeles Times
Ex-Goldman director Rajat Gupta sentenced to 2 years in prison - Los Angeles Times
Former Goldman Sachs director Rajat Gupta will spend two years behind bars for sharing secret company information with a hedge fund manager, becoming the highest-profile Wall Street figure heading to prison for insider trading.
Gupta once headed the prestigious consulting firm McKinsey & Co. and also served as a director to Procter & Gamble. His philanthropy around the globe has also been stunning, as Microsoft co-founder Bill Gates, former United Nations secretary general Kofi Annan and scores of others told the court in letters.
Former Goldman Sachs director Rajat Gupta will spend two years behind bars for sharing secret company information with a hedge fund manager, becoming the highest-profile Wall Street figure heading to prison for insider trading.
Gupta once headed the prestigious consulting firm McKinsey & Co. and also served as a director to Procter & Gamble. His philanthropy around the globe has also been stunning, as Microsoft co-founder Bill Gates, former United Nations secretary general Kofi Annan and scores of others told the court in letters.
Greece strikes deal on austerity plan, Samaras says
Greece strikes deal on austerity plan, Samaras says
(CNN) -- Debt-stricken Greece has agreed on final details with its international creditors on the terms for the next installment of a bailout deal, the prime minister said Tuesday.The Associated Press: Greek unions call 48-hour general strike
However, the agreement on new austerity measures and the country's budget must still be approved in two parliamentary votes -- which are likely to test the strength of Prime Minister Antonis Samaras' governing coalition.
ATHENS, Greece (AP) — Greece's two main labor unions covering civil servants and the private sector have called a 48-hour strike to protest austerity measures due to be voted on next week.
Eurozone Unemployment Hits New Record High of 11.6%
This is what happens when you have a central bank manipulating the money supply and governments regulating the jobs markets.
U.S. employment costs climb 0.4% in third quarter - MarketWatch
U.S. employment costs climb 0.4% in third quarter - MarketWatch
The employment cost index, which measures the price of U.S. labor, rose 0.4% in the third quarter, the Labor Department said Wednesday. That was slightly below the second quarter's increase of 0.5%. Over the past 12 months, employment costs have risen 2.0%, up from 1.7% in the prior three-month period. The ECI is a closely followed gauge that reflects how much companies, governments or nonprofit institutions are paying their employees in wages and benefits. Wages - which account for 70% of employment costs - rose 0.3% in the third quarter, while benefits jumped 0.8%. Year-on-year, wages were up 1.7%, compared with a 1.6% gain in the same period last year. Benefits registered a 2.6% year-on-year increase, down from a 3.2% gain in the same period last year.
The employment cost index, which measures the price of U.S. labor, rose 0.4% in the third quarter, the Labor Department said Wednesday. That was slightly below the second quarter's increase of 0.5%. Over the past 12 months, employment costs have risen 2.0%, up from 1.7% in the prior three-month period. The ECI is a closely followed gauge that reflects how much companies, governments or nonprofit institutions are paying their employees in wages and benefits. Wages - which account for 70% of employment costs - rose 0.3% in the third quarter, while benefits jumped 0.8%. Year-on-year, wages were up 1.7%, compared with a 1.6% gain in the same period last year. Benefits registered a 2.6% year-on-year increase, down from a 3.2% gain in the same period last year.
Umm what?
7:42aGM says Q3 results were 'solid'
7:41aGM Q3 revenue $37.6 bln vs. $36.7 bln
7:41aGM Q3 net 89c vs. $1.03
7:41aGM takes 4c in Q3 special items
Umm what? I know its early but.... what earnings? last day of month - windows dressing time and more Enron style accounting for the sheep.
General Motors Co. GM +4.81% said Wednesday its third-quarter profit fell to $1.5 billion, or 89 cents a share, from $1.7 billion, or $1.03 a share, in the year-ago period. Breaking out one-time items of 4 cents a share, GM earned 93 cents a share in the latest quarter. Revenue increased to $37.6 billion from $36.7 billion in the year-ago period. Wall Street analysts expected GM to earn 60 cents a share with revenue of just under $36 billion, according to a survey by FactSet. "GM had a solid quarter," said Chief Executive Dan Akerson. "We're...seeing green shoots take hold on tough issues like complexity reduction, pensions and Europe.
7:41aGM Q3 revenue $37.6 bln vs. $36.7 bln
7:41aGM Q3 net 89c vs. $1.03
7:41aGM takes 4c in Q3 special items
Umm what? I know its early but.... what earnings? last day of month - windows dressing time and more Enron style accounting for the sheep.
General Motors Co. GM +4.81% said Wednesday its third-quarter profit fell to $1.5 billion, or 89 cents a share, from $1.7 billion, or $1.03 a share, in the year-ago period. Breaking out one-time items of 4 cents a share, GM earned 93 cents a share in the latest quarter. Revenue increased to $37.6 billion from $36.7 billion in the year-ago period. Wall Street analysts expected GM to earn 60 cents a share with revenue of just under $36 billion, according to a survey by FactSet. "GM had a solid quarter," said Chief Executive Dan Akerson. "We're...seeing green shoots take hold on tough issues like complexity reduction, pensions and Europe.
Tuesday, October 30, 2012
Fed's Kocherlakota says rate policy not too easy - MarketWatch
Fed's Kocherlakota says rate policy not too easy - MarketWatch
The Federal Reserve hasn't overdone easing moves to help the economy, Narayana Kocherlakota, the president of the Minneapolis Federal Reserve Bank, said on Tuesday. In a speech at the University of Minnesota in Duluth, Kocherlakota said he strongly disagrees with the argument that the Fed has erred in being too loose. Given the central bank's current forecast of high unemployment and low inflation in coming years, "monetary policy is, if anything, too tight, not too easy," he said. The Fed has kept interest rates close to zero for almost four years and bought more than $2.3 trillion of assets. Kocherlakota conceded that the current policy is unprecedented, but he said it must be judged as the proper response to the financial crisis, which was the biggest shock to hit the economy in 80 years. "A historically unprecedented shock should lead to a historically unprecedented monetary policy response," he said.
The Federal Reserve hasn't overdone easing moves to help the economy, Narayana Kocherlakota, the president of the Minneapolis Federal Reserve Bank, said on Tuesday. In a speech at the University of Minnesota in Duluth, Kocherlakota said he strongly disagrees with the argument that the Fed has erred in being too loose. Given the central bank's current forecast of high unemployment and low inflation in coming years, "monetary policy is, if anything, too tight, not too easy," he said. The Fed has kept interest rates close to zero for almost four years and bought more than $2.3 trillion of assets. Kocherlakota conceded that the current policy is unprecedented, but he said it must be judged as the proper response to the financial crisis, which was the biggest shock to hit the economy in 80 years. "A historically unprecedented shock should lead to a historically unprecedented monetary policy response," he said.
Gold ETF Holdings Climb to New Record
Money is starting to flow. The demand to hold cash is falling, as
witnessed by housing prices and the climb in ETF gold holdings.
Note: You are much better off holding physical gold than ETFs. ETFs often hold synthetic gold instruments, which may not be deliverable in a crisis. Be smart, own actual gold and take delivery.
Note: You are much better off holding physical gold than ETFs. ETFs often hold synthetic gold instruments, which may not be deliverable in a crisis. Be smart, own actual gold and take delivery.
#Gold ETP holdings climb to record 2,587.92 metric tons
World Economic Outlook, October 2012 : Coping with High Debt and Sluggish Growth
The Start of the Crash of the US Dollar?
The exchange rate of the yuan hit a 19-year high as it traded at 6.2417 yuan per dollar.
US-China Today: Exchange rate hits 19-year record
The Chinese are clearly not supporting the dollar any longer.
According to a survey conducted by HSBC, 77 percent of Chinese companies expect one-third of all Chinese trade to be conducted in the yuan by 2015, and 30 percent plan to use the yuan in investment related activities in the next 12 months.
Thanks to decades of Federal Reserve money printing, the world is stuffed with dollars. Once, foreign operators choose to hold funds in non-dollar forms, the crash of the dollar begins.
US-China Today: Exchange rate hits 19-year record
The Chinese are clearly not supporting the dollar any longer.
According to a survey conducted by HSBC, 77 percent of Chinese companies expect one-third of all Chinese trade to be conducted in the yuan by 2015, and 30 percent plan to use the yuan in investment related activities in the next 12 months.
Thanks to decades of Federal Reserve money printing, the world is stuffed with dollars. Once, foreign operators choose to hold funds in non-dollar forms, the crash of the dollar begins.
The Home Price Climb Continues
Home prices continue are turning upward. According to the latest
Case_Shiller report,released today, the 20-city home price index climbed
2.0 percent year-over-year in August, the third straight month of y-o-y
gains.
Bottom line: Ben Bernanke money printing is working its way into the system, especially the housing mareke, i.e. the capital goods sector.
Bottom line: Ben Bernanke money printing is working its way into the system, especially the housing mareke, i.e. the capital goods sector.
The Silver Series: The History of Silver (Part 1) | Visual Capitalist
Click on Image then right click view image
The Coin Analyst: Central Bank Gold Holdings Believed To Be Smaller Than Governments Claim | CoinWeek
The Coin Analyst: Central Bank Gold Holdings Believed To Be Smaller Than Governments Claim | CoinWeek
An important development about gold is not receiving the attention it deserves in the mainstream, non-specialized media.
In particular, several reports have surfaced that the gold reserves of several Western countries are believed to be much smaller than previously estimated. That is a result of the fact that much of the gold is on lease to other countries, has been swapped, or in other cases, simply may not exist at all.
An important development about gold is not receiving the attention it deserves in the mainstream, non-specialized media.
In particular, several reports have surfaced that the gold reserves of several Western countries are believed to be much smaller than previously estimated. That is a result of the fact that much of the gold is on lease to other countries, has been swapped, or in other cases, simply may not exist at all.
What is Money? What is Inflation?
What is Money? What is Inflation?
Money is also that thing we put in monetary models of the price level and the business cycle. Thatbegs raises
the question of whether the price level is determined by shocks to the
medium of exchange, or shocks to the medium of account. Once we answer
that question, the business cycle problem will also be solved, as we all
agree that unanticipated price level shocks can trigger business
cycles.
So now we have to figure out what we mean by the term ‘inflation’. I’d like to propose 5 criteria:
Money is also that thing we put in monetary models of the price level and the business cycle. That
So now we have to figure out what we mean by the term ‘inflation’. I’d like to propose 5 criteria:
- Inflation is a general rise in the sticker price of goods.
- Unanticipated inflation helps borrowers and hurts lenders.
- When wages are sticky, deflation causes unemployment.
- Inflation reduces the value of the medium of account.
- Inflation reduces the value of the medium of exchange.
Greece delays austerity vote, warns of 'chaos' - Yahoo! Finance
Greece delays austerity vote, warns of 'chaos' - Yahoo! Finance
Greece's coalition government will delay a vote on major new austerity measures by another week, warning Tuesday there would be financial "chaos" if a deal is not reached.
Finance Minister Yannis Stournaras told reporters that the austerity measures, worth €13.5 billion ($17.4 billion), would be submitted to parliament next week, as the three parties in government continue to disagree over new savings demanded by international bailout lenders.
Stournaras denied local media reports that the bill could be broken up to ease objections by a left-wing junior coalition partner.
Greece's coalition government will delay a vote on major new austerity measures by another week, warning Tuesday there would be financial "chaos" if a deal is not reached.
Finance Minister Yannis Stournaras told reporters that the austerity measures, worth €13.5 billion ($17.4 billion), would be submitted to parliament next week, as the three parties in government continue to disagree over new savings demanded by international bailout lenders.
Stournaras denied local media reports that the bill could be broken up to ease objections by a left-wing junior coalition partner.
The Real Lesson of Hurricane Sandy: NYC is Ill Prepared for a Real Disaster
What is important to recognize, however, is that the low level emergency revealed just how unprepared the city is for a major catastrophe that includes the loss of power.
It's clear now that while the Mayor of NYC holds press conferences on the size of cups that should be allowed for sugary drinks, no one has been checking on the capabilities of NYC hospitals to survive a power outage during an emergency.
NYU Hospital had to be evacuated because of generator failures, after ConEd power went out, and Bellevue Hospital was within an hour of being evacuated, before a human chain snaked to the hospitals 13th floor to deliver 5 gallon containers of fuel the hospital did not have on hand for an emergency. The hospital also ran out of oxygen containers.
Thus, while Mayor Bloomberg will do all kinds of posing on television today, the fact of the matter is government did not provide basic checks to determine if hospitals could provide services in a power outage related emergency. Hurricane Sandy has revealed the true state of affairs, government as protector is a myth. It's pretty much all show---all talk and no generator checks.
If you really want to protect yourself during a crisis make sure you have your own stockpile of food, clothing, weapons and an electric generator. Government officials and elitists will pooh, pooh the necessity of doing this as wild west, right wing thinking, but watch what the elitists do not what they say.
Here's what Goldman Sachs did before the storm hit:
They certainly weren't depending on the government to protect them. And
reports indicated that, through out the night, lights remained on in the
Goldman Sachs building, while the rest of Wall Street was dark. Which
means GS had their own functional power generator(s), better than those
at NYU Hospital or Bellevue.
Also, the leftist Paul Krugman reported that he had his own private generator operating to keep his residence with power, after power went out in Princeton.
Take the lesson from these elitists, be prepared on your own
for emergencies, government will only be on the scene much too late, if
at all.
South Africa Sees New Mine Unrest
Anglo Platinum is the last remaining company with a major strike blocking its production, after a wave of stoppages that affected numerous mines producing gold, platinum and iron. Months of wildcat strikes have lost the South Africa’s mining industry billions of dollars of revenue by shutting down production.
The strikes have contributed to the finance ministry’s decision to lower its growth outlook for the year.
South Africa Sees New Mine Unrest - WSJ.com
REAL EARNINGS
Home prices up 2% year over year, yet -
REAL EARNINGS * SEPTEMBER 2012
All employees
Real average hourly earnings for all employees fell 0.3 percent from August to September, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. A 0.3 percent increase in average hourly earnings was more than offset by a 0.6 percent increase in the Consumer Price Index for All Urban Consumers (CPI-U).
Real average weekly earnings was unchanged over the month due to the decrease in real average hourly earnings combined with a 0.3 percent increase in the average workweek. Since reaching a peak in October 2010, real average weekly earnings has fallen 1.3 percent.
Real Earnings
REAL EARNINGS * SEPTEMBER 2012
All employees
Real average hourly earnings for all employees fell 0.3 percent from August to September, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. A 0.3 percent increase in average hourly earnings was more than offset by a 0.6 percent increase in the Consumer Price Index for All Urban Consumers (CPI-U).
Real average weekly earnings was unchanged over the month due to the decrease in real average hourly earnings combined with a 0.3 percent increase in the average workweek. Since reaching a peak in October 2010, real average weekly earnings has fallen 1.3 percent.
Real Earnings
Japan central bank ups asset buys to aid economy - Businessweek
Japan central bank ups asset buys to aid economy - Businessweek
Japan's central bank expanded a government bond-buying program Tuesday, vowing to spur growth as it further downgraded the country's economic outlook following declines in industrial output and household spending in September.
Under heavy pressure to do more to help rid the economy of debilitating deflation, the Bank of Japan's policy board voted unanimously to increase the asset purchasing program by 11 trillion yen ($139 billion) to 91 trillion yen ($1.15 trillion).
Japan's central bank expanded a government bond-buying program Tuesday, vowing to spur growth as it further downgraded the country's economic outlook following declines in industrial output and household spending in September.
Under heavy pressure to do more to help rid the economy of debilitating deflation, the Bank of Japan's policy board voted unanimously to increase the asset purchasing program by 11 trillion yen ($139 billion) to 91 trillion yen ($1.15 trillion).
German Jobs Machine Falters For First Time in Three Years - Bloomberg
German Jobs Machine Falters For First Time in Three Years - Bloomberg
German unemployment rose twice as much as economists forecast in October and the jobless rate increased for the first time in three years as the sovereign debt crisis damped economic growth and investment.But 'gamed' unemployment figures in US are fine and house prices increased 2% YOY in August..LMAO..sure they are.
Oh Boy, Not a Good Sign for the NYC Subway System
No U.S.-style housing crash for Canada: report - The Globe and Mail
No U.S.-style housing crash for Canada: report - The Globe and Mail
"One-third of mortgages taken out in the U.S. in 2005 and 2006 were in negative equity positions before house prices dropped, and at least half of the mortgages had less than five per cent equity, making them extremely vulnerable to even a small drop in prices, Mr. Tal says. In Canada, only 15 to 20 per cent of new mortgages have less than 15 per cent equity, and the negative equity position is nil, he says.
In addition, Canadian borrowers have begun reducing their exposure to rising interest rates by choosing fixed-rate mortgages over variable. The opposite occurred in the U.S. where adjustable rate mortgages remained popular until the bitter end, the report says.
It also pokes holes in some of the reasons that policy-makers and bankers in Canada often cite for keeping the Canadian housing market on a solid footing. For instance, bankers will regularly point to the extremely low mortgage delinquency rate here. “But as the U.S. experience teaches us, this sea of tranquillity can turn into a violent storm overnight,” Mr. Tal writes. “In a short eighteen-month period in 2007-08, the serious mortgage arrears rate in the U.S. surged by more than 300 per cent.”
Ha ha ha ha ok sure go with that...
"One-third of mortgages taken out in the U.S. in 2005 and 2006 were in negative equity positions before house prices dropped, and at least half of the mortgages had less than five per cent equity, making them extremely vulnerable to even a small drop in prices, Mr. Tal says. In Canada, only 15 to 20 per cent of new mortgages have less than 15 per cent equity, and the negative equity position is nil, he says.
In addition, Canadian borrowers have begun reducing their exposure to rising interest rates by choosing fixed-rate mortgages over variable. The opposite occurred in the U.S. where adjustable rate mortgages remained popular until the bitter end, the report says.
It also pokes holes in some of the reasons that policy-makers and bankers in Canada often cite for keeping the Canadian housing market on a solid footing. For instance, bankers will regularly point to the extremely low mortgage delinquency rate here. “But as the U.S. experience teaches us, this sea of tranquillity can turn into a violent storm overnight,” Mr. Tal writes. “In a short eighteen-month period in 2007-08, the serious mortgage arrears rate in the U.S. surged by more than 300 per cent.”
Ha ha ha ha ok sure go with that...
The Serious Problem of Saltwater in the Subway System
The subway system is "in jeopardy," MTA Chairman Joseph Lhota said Monday. "Our subway system and salt water do not mix."
Salt can eat at motors, metal fasteners and the electronic parts, some many decades old, that keep the system running. Salt water, and the deposits it leaves behind, degrades the relays that run the signal system, preventing train collisions. Salt water also conducts electricity, which can exacerbate damage to signals if the system isn't powered down before a flood.
The MTA closed down its entire regional network of rails and buses on Sunday evening and expected it will remain dark at least until Wednesday morning.
Agency officials couldn't say how quickly the subway could be brought back into operation, but Mr. Lhota said in an interview that the flooding above ground appeared "serious."
The speed of recovery would depend on how badly floodwaters damaged the 14 subway tunnels under the Harlem and East Rivers, where the system is most exposed to catastrophic flooding.
Klaus Jacob, a research scientist at Columbia University's Lamont-Doherty Earth Observatory, wrote in a report last year that it could take as long as 29 days to pump out a full inundation of the tunnels.
The system already copes with a tremendous amount of groundwater and runoff, especially at stations at the tip of Manhattan, where the water table has risen in recent years. Even on a dry day, the MTA's 300 pumping rooms remove an estimated 13 million gallons of water from the tunnel network, just to keep the system dry enough to run.
Pumping water out of flooded tunnels would take anywhere from 14 hours to four days, MTA officials said.
And that task would be followed by even more painstaking work—evaluating damage, then cleaning and repairing or replacing the electronic signal arrays that line every inch of the subway tracks, and which are essential to running the system's trains.
"You can't order a part from Westinghouse or General Electric GE -0.71% that is 100 years old," Mr. Jacob said. MTA workers will have to clean and test flooded equipment, "then you cross your fingers and hope that it works," he said.
It was a long time ago, but the subways were once private. If they had stayed private they wouldn't be in the poor shape they are in today. Mayor after mayor failed to spend the money that a private firm would have spent to keep the subway in tip top shape, now it is a rat infested mess. Think about that New Yorkers when you have to walk three hours to work while the City tries to find replacement parts for 100 year old equipment.
Monday, October 29, 2012
UBS set to exit fixed income, fire 10,000 bankers - Yahoo! Singapore Finance
UBS set to exit fixed income, fire 10,000 bankers - Yahoo! Singapore Finance
UBS is expected to reveal plans on Tuesday to wind down its fixed income business and fire 10,000 bankers, with shareholders cheering one of the biggest bonfires of finance jobs since the implosion of Lehman Brothers in 2008.
The move will focus Zurich-based UBS (VTX:UBSN.VX - News) around its private bank and a smaller investment bank, ditching much of the trading business that saw it lose $50 billion in the financial crisis and one rogue trader lose $2.3 billion last year.
Chief Executive Sergio Ermotti is expected to announce plans for a slimmer, less risky investment bank focused on equities, foreign exchange trading and giving corporate advice.
UBS is expected to reveal plans on Tuesday to wind down its fixed income business and fire 10,000 bankers, with shareholders cheering one of the biggest bonfires of finance jobs since the implosion of Lehman Brothers in 2008.
The move will focus Zurich-based UBS (VTX:UBSN.VX - News) around its private bank and a smaller investment bank, ditching much of the trading business that saw it lose $50 billion in the financial crisis and one rogue trader lose $2.3 billion last year.
Chief Executive Sergio Ermotti is expected to announce plans for a slimmer, less risky investment bank focused on equities, foreign exchange trading and giving corporate advice.
Flood waters rush in to the Hoboken PATH station through an elevator shaft.
Water at 34th and First Avenue in Manhattan!
This is far from lower Manhattan. My guess is this more water coming from the East River.
Nuclear power plants prepare to shut down if storm sends water, wind levels too high
WASHINGTON — "Federal regulators and safety officials at nuclear
power plants along the Eastern Seaboard were keeping a watchful eye on
wind and water levels, preparing to shut plants down should Superstorm
Sandy send levels surging. Still, by Monday evening, before the storm
made landfall along the coast of New Jersey, no plants had been taken
offline."
http://www.washingtonpost.com/politics/federal_government/nuclear-power-plants-prepare-to-shut-down-if-storm-sends-water-wind-levels-too-high/2012/10/29/e8e5dc6e-2226-11e2-92f8-7f9c4daf276a_story.html\
http://www.washingtonpost.com/politics/federal_government/nuclear-power-plants-prepare-to-shut-down-if-storm-sends-water-wind-levels-too-high/2012/10/29/e8e5dc6e-2226-11e2-92f8-7f9c4daf276a_story.html\
Storm surge is now at 13 ft at Battery Park. Probably as high as it's going to get. That said, lower Manhattan is submerged.
Storm surge is now at 13 ft at Battery Park. Probably as high as it's going to get who knows. That said, lower Manhattan is submerged.
http://tidesonline.nos.noaa.gov/plotcomp.shtml?station_info=8518750+The+Battery,+NY+&flag=0
http://tidesonline.nos.noaa.gov/plotcomp.shtml?station_info=8518750+The+Battery,+NY+&flag=0
In other news Lindsay Lohan had the following to say:
WHY is everyone in SUCH a panic about hurricane (i'm calling it
Sally)..? Stop projecting negativity! Think positive and pray for peace.
(@lindsaylohan)
https://twitter.com/lindsaylohan/sta...21025035350017
Con Ed Shuts Down Power In Lower Manhattan, Preemptive Shut Down "Likely" For Brooklyn: Gothamist
Con Ed Shuts Down Power In Lower Manhattan, Preemptive Shut Down "Likely" For Brooklyn: Gothamist
During the Hurricane Sandy/FRANKENSTORM update this evening, Mayor Bloomberg and Con Edison CEO Kevin Burke said that Con Ed are considering preemptively shutting down underground power networks in many parts of Lower Manhattan and Brooklyn tonight. "We're looking at, and I think it's likely that, we'll be preemptively shutting down two underground networks in Manhattan—the Fulton network and the Bowling Green network, which essentially covers the areas between Broadway, the East River and south of the Brooklyn Bridge—and also perhaps Brighton Beach by Coney Island," Burke said. And just now, Con Ed just shut down power to the Bowling Green Electrical Network, apparently Wall Street to the tip and then east of Broadway.
During the Hurricane Sandy/FRANKENSTORM update this evening, Mayor Bloomberg and Con Edison CEO Kevin Burke said that Con Ed are considering preemptively shutting down underground power networks in many parts of Lower Manhattan and Brooklyn tonight. "We're looking at, and I think it's likely that, we'll be preemptively shutting down two underground networks in Manhattan—the Fulton network and the Bowling Green network, which essentially covers the areas between Broadway, the East River and south of the Brooklyn Bridge—and also perhaps Brighton Beach by Coney Island," Burke said. And just now, Con Ed just shut down power to the Bowling Green Electrical Network, apparently Wall Street to the tip and then east of Broadway.
ConEd warns lower Manhattan customers of possible power outages tonight
ConEd warns lower Manhattan customers of possible power outages tonight - CNBC
Consolidated Edison Inc, the New York City power provider, warned customers in lower Manhattan it may shut down power on Monday evening as Hurricane Sandy barrels toward the East Coast.
Consolidated Edison Inc, the New York City power provider, warned customers in lower Manhattan it may shut down power on Monday evening as Hurricane Sandy barrels toward the East Coast.
Blackouts
could affect streets as far north as 34th Street, in line with the
Empire State building, a Con Edison spokesman said, though would likely
be limited to those avenues closest to the East and Hudson rivers. The
central avenues are not expected to be affected.
"We
have contacted customers on the southern tip of Manhattan and on the
lower sections of the Hudson and East River," Con Edison spokesman
Alfonso Quiroz told Reuters, saying the firm's automated calling system
had placed calls to homeowners and businesses in the affected area.
He said the company would make a final decision at about 8 pm EDT when the tide approaches its highest point.
The Free Market Movement of Money is Way Ahead of the Government...
...and the government starting to worry, it won't be able to track every transaction going on in the world.
Below is a report from the Atlanta Fed, displaying concern. (Imagine what they must think of bitcoins).
The just-released 2011 FDIC national survey on
unbanked and underbanked households reports that this demographic
segment has shown modest growth since the 2009 survey. Despite
improvements in the general economy, 20.1 percent of U.S. households are
underbanked and 8.2 percent are unbanked completely. According to the
FDIC's definition,underbanked consumers
may have a traditional bank account, but they rely heavily on
alternative providers for financial services (shortened to AFS in the
FDIC report). As we described in a previous post on nonbanks, the
landscape for AFS today is a highly dynamic free-market environment that
fosters creativity and innovation. Will the confluence of a growing
underserved market and the ever-expanding role of nonbanks in our U.S.
payments system fuel the fire for increased reliance upon AFS in
general?
Growing use of alternative financial services
The growing reliance on AFS became more widespread between 2009 and 2011. According to the 2011 FDIC report, about 25 percent of all households, including the unbanked and underbanked, reported using AFS in the last year. These AFS users report finding nonbank financial services more convenient, faster, and less expensive than traditional banks.
The growing reliance on AFS became more widespread between 2009 and 2011. According to the 2011 FDIC report, about 25 percent of all households, including the unbanked and underbanked, reported using AFS in the last year. These AFS users report finding nonbank financial services more convenient, faster, and less expensive than traditional banks.
Every day, many new types of nonbanks, including telecom firms, are entering the payments space, as we noted in this 2009 post on
mobile money transfers. More recently, social networks like Facebook
and PayPal-like payment business models such as Dwolla are entering the
fray. Regulators of money transfer operators are working diligently to
ensure that the myriad of new firms in the business are appropriately
licensed and regulated. The fast pace of nonbank entry is creating a
confusing regulatory environment and potential vulnerabilities that bad
actors may find opportunities to exploit.
The growing appeal of prepaid
The 2011 FDIC report also notes that the unbanked and underbanked households rely on prepaid cards more than do fully banked households. One in 10 households overall reported the use of a prepaid card. The proportion of unbanked household that have used a prepaid card climbed from 12.2 percent in 2009 to 17.8 percent in the last survey.
The 2011 FDIC report also notes that the unbanked and underbanked households rely on prepaid cards more than do fully banked households. One in 10 households overall reported the use of a prepaid card. The proportion of unbanked household that have used a prepaid card climbed from 12.2 percent in 2009 to 17.8 percent in the last survey.
The fact is, prepaid card adoption has been on the rise for some time. The Fed's last triennialpayment study reported
it to be the fastest growing retail payment method. The expanded
functionality for prepaid payments today make them practical for many
uses, including payroll, travel, and the provision of benefits.
Consumers can purchase prepaid cards from merchants and other nonbank
locales where they might be more comfortable than they would be in a
traditional financial institution.
This is all good news in the context of financial inclusion and expanded
opportunity for the unbanked to participate in the electronic economy
and shift from more informal transfer methods. However, payments experts
still have concerns. In particular, there is the risk that violators of
money laundering laws may go undetected as stored-value payments move
from the plastic card to other access devices such as mobile handsets.
FinCEN and other regulators will need to keep these issues front of mind
as adoption grows and more nonbanks participate in the prepaid
industry.
Real Fiscal Cliff-Currency and Bond Collapse-Michael Pento | Greg Hunter’s USAWatchdog
Real Fiscal Cliff-Currency and Bond Collapse-Michael Pento | Greg Hunter’s USAWatchdog
Economist Michael Pento says forget the “Fiscal Cliff” you have been told about. Pento charges, “The real ‘Fiscal Cliff’ is the coming currency and bond market collapse.” Pento says if we stay on our current path, “We are in for an interest rate shock that will make the Great Depression look like the days of wine and roses.” The open-ended Fed money printing is creating “. . . a fictitious world of artificially low interest rates,” according to Pento. He says, “We need to move quickly towards a balanced budget . . . yes, it will be painful for a lot of people.” If we don’t change course, Pento says, “A financial collapse is inevitable . . . the free market will force this Fiscal Cliff upon us. There is no way around it.”
Economist Michael Pento says forget the “Fiscal Cliff” you have been told about. Pento charges, “The real ‘Fiscal Cliff’ is the coming currency and bond market collapse.” Pento says if we stay on our current path, “We are in for an interest rate shock that will make the Great Depression look like the days of wine and roses.” The open-ended Fed money printing is creating “. . . a fictitious world of artificially low interest rates,” according to Pento. He says, “We need to move quickly towards a balanced budget . . . yes, it will be painful for a lot of people.” If we don’t change course, Pento says, “A financial collapse is inevitable . . . the free market will force this Fiscal Cliff upon us. There is no way around it.”
UPDATE: Labor Department ‘Working Hard’ to Ensure Jobs Report Released on Time
UPDATE: Labor Department ‘Working Hard’ to Ensure Jobs Report Released on Time
The U.S. Labor Department on Monday said it is “working hard to ensure the timely release” of the October jobs report, saying it intends to released the report on schedule Friday despite Hurricane Sandy.
“It is our intention that Friday will be business as usual,” said Carl Fillichio, a senior press advisor at Labor. Mr. Fillichio’s statement provided clarity to an earlier Labor statement that said the agency would assess how to handle data releases this week after the “weather emergency” is over.
Gold and a stable monetary base lead to economic prosperity and peace – GoldSilverWorlds
Gold and a stable monetary base lead to economic prosperity and peace – GoldSilverWorlds
We recently wrote The Case For A Higher Gold Price Based On Monetary History, which describes the analogy between the end of Bretton Woods and a potential end of the current hegemony of the US dollar as a reserve currency. Today we present another case in monetary history: Germany in the 20th century. This case is particularly interesting because it’s often cited as a prime example of hyperinflation. The key question in this case is what the root cause was of the hyperinflation and which measure(s) brought the situation back under control. Ultimately, here at GoldSilverWorlds, we are interested in understanding if therey is any link with Gold.
While researching what exactly caused Germany’s hyperinflation of 1923, we’ve found an extremely insightful paper in the scientific directory Citeseerx. The paper is entitled “Germany Monetary History in the First Half of the Twentieth Century” and is written by Robert Hetzel. The document provides an in-depth analysis of Germany’s situation before, during and after the hyperinflationary period. Below are the highlights from the paper; the full version of the document is embedded below.
We recently wrote The Case For A Higher Gold Price Based On Monetary History, which describes the analogy between the end of Bretton Woods and a potential end of the current hegemony of the US dollar as a reserve currency. Today we present another case in monetary history: Germany in the 20th century. This case is particularly interesting because it’s often cited as a prime example of hyperinflation. The key question in this case is what the root cause was of the hyperinflation and which measure(s) brought the situation back under control. Ultimately, here at GoldSilverWorlds, we are interested in understanding if therey is any link with Gold.
While researching what exactly caused Germany’s hyperinflation of 1923, we’ve found an extremely insightful paper in the scientific directory Citeseerx. The paper is entitled “Germany Monetary History in the First Half of the Twentieth Century” and is written by Robert Hetzel. The document provides an in-depth analysis of Germany’s situation before, during and after the hyperinflationary period. Below are the highlights from the paper; the full version of the document is embedded below.
First Place Financial Corp. Files Bankruptcy in Delaware - Businessweek
First Place Financial Corp. Files Bankruptcy in Delaware - Businessweek
First Place Financial Corp., the holding company for First Place Bank, filed for Chapter 11 bankruptcy in Delaware listing assets of $175.3 million.
The company, which listed debts of $64.5 million in documents filed yesterday with the U.S. Bankruptcy Court in Wilmington, indicated it has an agreement to sell assets to Talmer Bancorp Inc.
Asset sales in bankruptcy are typically subject to higher and better offers at a court-supervised auction.
First Place Financial Corp., the holding company for First Place Bank, filed for Chapter 11 bankruptcy in Delaware listing assets of $175.3 million.
The company, which listed debts of $64.5 million in documents filed yesterday with the U.S. Bankruptcy Court in Wilmington, indicated it has an agreement to sell assets to Talmer Bancorp Inc.
Asset sales in bankruptcy are typically subject to higher and better offers at a court-supervised auction.
Bread Shelves Go Empty in Manhattan
No Decision yet on delaying October Jobs Report
The U.S. Labor Department on Monday said it hasn’t made a decision yet on whether to delay Friday’s October jobs report ... The U.S. Census Bureau also said it hasn’t made a decision on whether to delay economic reports it plans to release this week, including construction spending on Thursday and factory orders on Friday.
EBay to cut 325 jobs at its PayPal unit - MarketWatch
EBay to cut 325 jobs at its PayPal unit - MarketWatch
EBay Inc. EBAY +2.42% on Monday announced a restructuring at its PayPal online payments business that includes the cutting of 325 jobs. In a statement, eBay said the majority of the job cuts would be made in PayPal's product and technology operations. "The reduction results from a redesign of PayPal's product organization, consolidating nine product groups into a single, more agile organization," eBay said. EBay will also end contracts with 120 contractors around the world, and the cuts would result in a pre-tax charge of about $15 million in the fourth quarter.
EBay Inc. EBAY +2.42% on Monday announced a restructuring at its PayPal online payments business that includes the cutting of 325 jobs. In a statement, eBay said the majority of the job cuts would be made in PayPal's product and technology operations. "The reduction results from a redesign of PayPal's product organization, consolidating nine product groups into a single, more agile organization," eBay said. EBay will also end contracts with 120 contractors around the world, and the cuts would result in a pre-tax charge of about $15 million in the fourth quarter.
Payrolls report could be delayed: report - MarketWatch
Payrolls report could be delayed: report - MarketWatch
The Labor Department may delay the payrolls report due Friday, according to The Wall Street Journal, which cited an unnamed official. The determination will be made after the "weather event" is over, the report said
The Labor Department may delay the payrolls report due Friday, according to The Wall Street Journal, which cited an unnamed official. The determination will be made after the "weather event" is over, the report said
Gold traders bullish as as investors' bullion holdings rise to a record high - The Economic Times
Gold traders bullish as as investors' bullion holdings rise to a record high - The Economic Times
Gold traders are the most bullish in three weeks as investors' bullion holdings rose to a record on mounting speculation that central banks will add stimulus to bolster economic growth.
Fourteen of 26 analysts surveyed by Bloomberg expect prices to rise next week, nine were bearish and three were neutral. Investors boosted holdings in exchange-traded products (ETP) to an all-time high of 2,585.1 tonne last week, valued at $142.4 billion, data compiled by Bloomberg show. Hedge funds' bets on a rally are near the biggest in more than a year, according to US Commodity Futures Trading Commission data.
Food for thought:
Virtually all of the financial mechanisms in our country are in the path of Sandy...
Gold traders are the most bullish in three weeks as investors' bullion holdings rose to a record on mounting speculation that central banks will add stimulus to bolster economic growth.
Fourteen of 26 analysts surveyed by Bloomberg expect prices to rise next week, nine were bearish and three were neutral. Investors boosted holdings in exchange-traded products (ETP) to an all-time high of 2,585.1 tonne last week, valued at $142.4 billion, data compiled by Bloomberg show. Hedge funds' bets on a rally are near the biggest in more than a year, according to US Commodity Futures Trading Commission data.
Food for thought:
Virtually all of the financial mechanisms in our country are in the path of Sandy...
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