Group items tagged

Since 91% of stocks are owned by the Plutocracy, the much-ballyhooed rise in the stock market as proof the recession is over is perception management/ propaganda.

In the past, I have talked about risk-aware culture and Enterprise Risk but have not so far talked about a risk that is part of the business. In the same vein without taking that risk companies can't survive. This situation becomes a reality as soon as a company or a lender issues credit or lends money.Now as a CFO, this is a difficult balance to strike as credit risk is linked more to potential bankruptcy of a customer. So do you say no to a potential transaction because the financial metrics of a customer are weak or do you take the current benefits associated with the transaction to be executed and hope that bankruptcy situation doesn't arise?

Much has been discussed on the root causes for the current financial crisis, including but not limited to lessons on monetary policy, financial sector regulations, accounting rules. This note aims to stimulate debate and discussions on some of the pro-cyclical features in the system, possible remedial measures, and how monetary and fiscal authorities can play their professional roles at times of severe market distress. It also touches upon China's financial sector reform and macroeconomic policy to counter slowdown in economic growth. The major points here were presented at the G20 Meeting of Finance Ministers and Central Bank Governors in San Paulo, Brazil on November 15, 2008.

The fear that began in Athens, raced through Europe, and finally shook the stock market in the United States is now affecting the broader global economy, from the ability of Asian corporations to raise money to the outlook for money-market funds where American savers park their cash.

Could euro devaluation increase the size of the U.S. deficit? Marshall Auerback explores the possibility, and what it means if deficit hysteria continues unchecked.

Right now, according to a number of studies, we are losing about $100 billion every year because corporate America and the very wealthy are stashing their money in tax havens like the Cayman Islands and Bermuda. We should be aware that in 2009, ExxonMobil made $19 billion in profits and not only did the company not pay anything in taxes, it got a $106 million refund from the IRS. We should also be aware that since 1997, we have almost tripled funding for the military. So if we are serious about reducing the deficit, those are things we need to look at-not at Social Security, not programs everyday Americans need.

The catastrophe in Japan has made apparent just how fragile the global economy has become. Factories around the world have had to slow production due to a lack of parts. But the problems are surmountable -- provided the nuclear disaster in Fukushima doesn't worsen.

The Big Money economy is booming. According to a new Commerce Department report, third-quarter profits of American businesses rose at an annual record-breaking $1.659 trillion - besting even the boom year of 2006 (in nominal dollars). Profits have soared for seven consecutive quarters now, matching or beating their fastest pace in history. Executive pay is linked to profits, so top pay is soaring as well. Higher profits are also translating into the nice gains in the stock market, which is a boon to everyone with lots of financial assets. And Wall Street is back. Bonuses on the Street are expected to rise about 5 percent this year, according to a survey by compensation consultants Johnson Associates Inc. But nothing is trickling down to the Average Worker economy. Job growth is still anemic. At October's rate of only 50,000 new private-sector jobs, unemployment won't get down to pre-recession levels for twenty years. And almost half of October's new jobs were in temporary help.

The past three years have been a disaster for most Western economies. The United States has mass long-term unemployment for the first time since the 1930s. Meanwhile, Europe's single currency is coming apart at the seams. How did it all go so wrong?

CAMBRIDGE - Why is everyone still referring to the recent financial crisis as the "Great Recession"? The term, after all, is predicated on a dangerous misdiagnosis of the problems that confront the United States and other countries, leading to bad forecasts and bad policy.

Nobel Prize-winning economist Paul Krugman employed a bit of imagination while discussing the need for fiscal stimulus on Fareed Zakaria's "GPS" last week, playfully suggesting that the discovery of an impending alien attack would force the American Congress to shelve debates about inflation and budget deficits and spend at a rate that would end the current recession in a year and a half. "If we discovered that, you know, space aliens were planning to attack and we needed a massive buildup to counter the space alien threat, and really, inflation and budget deficits took secondary place to that, this slump would be over in 18 months," he mused. "And then if we discovered, 'Whoops! We made a mistake. There aren't actually any space aliens ...' " the spending would leave us better off. "There was a 'Twilight Zone' episode like this in which scientists fake an alien threat in order to achieve world peace," he added. "Well, this time, we don't need it, we need it in order to get some fiscal stimulus." -ARK

October 2011 is the 10th anniversary of the invasion of Afghanistan and the beginning of the 2012 federal austerity budget. It is time to light the spark that sets off a true democratic, nonviolent transition to a world in which people are freed to create just and sustainable solutions. Read more.

It is not democracy that keeps western nations at war, but armies and the interests now massed behind them. The greatest speech about modern defence was made in 1961 by the US president Eisenhower. He was no leftwinger, but a former general and conservative Republican. Looking back over his time in office, his farewell message to America was a simple warning against the "disastrous rise of misplaced power" of a military-industrial complex with "unwarranted influence on government". A burgeoning defence establishment, backed by large corporate interests, would one day employ so many people as to corrupt the political system. (His original draft even referred to a "military-industrial-congressional complex".) This lobby, said Eisenhower, could become so huge as to "endanger our liberties and democratic processes".

Despite the financing challenges, Argentina's economy has grown by more than 8 percent a year since 2003, and many industries have benefited from the devaluation. Argentina has resumed exporting cars to Brazil. Tourism has flourished from an influx of Brazilians and other foreigners. In the end, Argentina may have one more lesson to teach Greece: the danger of fatalism. "A lot of people were saying that Argentina would never recover, that the peso would never regain value, that this country was damned," said Mr. Kerner, the analyst. "And it didn't happen."

Greece faces unacceptable conditions for a new bailout. If it defaults, the US had better be ready for the economic shock. The European authorities are playing a dangerous game of "chicken" with Greece right now. It is overdue for US members of Congress to exercise some oversight as to what our government's role is in this process, and how we might be preparing for a Greek debt default. Depending on how it happens, this default could have serious repercussions for the international financial system, the US economy and, indeed, the world economy.

This story from Bloomberg just hit the wires this morning.  Bank of America is shifting derivatives in its Merrill investment banking unit to its depository arm, which has access to the Fed discount window and is protected by the FDIC. What this means for you is that when Europe finally implodes and banks fail, U.S. taxpayers will hold the bag for trillions in CDS insurance contracts sold by Bank of America and JP Morgan.  Even worse, the total exposure is unknown because Wall Street successfully lobbied during Dodd-Frank passage so that no central exchange would exist keeping track of net derivative exposure.

The switch in advantage to the US is relative. It does not imply a healthy US recovery. The global depression will grind on as much of the Western world tightens fiscal policy and slowly purges debt, and as China deflates its credit bubble.

Loans for unemployed sanctioned same day of applying from the time the borrower applies for the loan. These loans are designed to meet all your unplanned cash shortfalls with in a very short time period.

Loans for unemployed sanctioned same day of applying from the time the borrower applies for the loan. These loans are designed to meet all your unplanned cash shortfalls with in a very short time period.