Recent comments by Rajesh

If Greece doesn't have a banking system in the third quarter, could we see a 30%, 40%, 60% drop in GDP?

Don't worry, the Chinese can cover their stock losses using the profits from their copper stockpiles.

China should adopt the slogan: Everything's bigger in China.

No, wait. That may be taken already.

Finance_Fan wrote:

If he's not fighting for ISIS by then

Trump's too old to be fighting for ISIS.

Finance_Fan wrote:

Was it Barney Frank the one in our own Congress caught up with a 0% mtg from CFC - Countrywide at the peak of the housing bubble?

No, that was the other guy, Chris Dodd, senator from the hedge fund state. Now Lobbyist for the motion picture industry.
Chris Dodd - Wikipedia, the free encyclopedia

Condé Nast Portfolio reported allegations that in 2003 Dodd had refinanced the mortgages on his homes in Washington, D.C. and Connecticut through Countrywide Financial and had received favorable terms due to being placed in the "Friends of Angelo" VIP program, so named for Countrywide CEO Angelo Mozilo. Dodd received mortgages from Countrywide at allegedly below-market rates on his Washington, D.C. and Connecticut homes.[28] Dodd had not disclosed the below-market mortgages in any of six financial disclosure statements he filed with the Senate or Office of Government Ethics since obtaining the mortgages in 2003.[29]

Mary wrote:

That's why he requested EUR 29B in new loans.

They're not really new loans. They're just old loans wrapped in festive wrapping paper. To make the people feel that they've got something.

We never really enjoyed this news.
Sweden Deepens Negative Interest Rates to Curb Gains in Krona - Bloomberg Business

Sweden’s central bank lowered its main interest rate deeper into negative levels and expanded its bond purchases to the end of the year as the turmoil in Greece raises the specter of further krona gains.

The repo rate was cut to minus 0.35 percent from minus 0.25 percent, the Stockholm-based bank said in a statement. A reduction was predicted by 4 of 18 analysts in a Bloomberg survey, with the remainder forecasting no change. The bank expanded its bond purchasing program by 45 billion kronor ($5.3 billion) to the end of year, adding to the 80 billion kronor to 90 billion kronor already announced.

“Inflation is rising and economic activity in Sweden is continuing to strengthen,” the bank said. “But uncertainty abroad has increased and it is difficult to assess the consequences of the situation in Greece. Since the repo-rate decision in April, the krona has also become stronger than the Riksbank had forecast and the development of the exchange rate remains a risk to the upturn in inflation.”

Swedish policy makers have unleashed unprecedented measures this year to jolt the largest Nordic economy out of disinflation. They were forced to respond after record stimulus by the European Central Bank threatened to drive up the value of the krona and further hamper their fight to bring back price growth, which has been near zero since the end of 2012.

merchants of fear wrote:

Does this explain Wall St.?

You have to throw in cocaine as well to explain Wall Street.

Hu Knows hunting Vampire Squid from Hell
In struggle to stem market rout, China hunts manipulators
| Reuters

On Thursday, Shanghai's benchmark composite index .SSEC slumped below 4,000 points for the first time since April - a key support level that analysts had expected Beijing to defend. It had more than doubled over the last year, fueled in large part by speculators using borrowed money to bet on shares.

"This is happening against an (economic) growth backdrop that continues to look soft, as illustrated by the flat manufacturing survey this week," noted analysts at Barclays.

"With growth data still soft, China remains a key uncertainty for the global outlook."

Weakness in Chinese demand was blamed for a steep 8 percent slide in prices for iron ore on Thursday. A sixth straight session of declines dragged the price for the steel-making mineral to a 10-week trough at $55.80 a ton .IO62-CNI=SI.

The retreat comes amid booming supply of the ore with Australian shipments from Port Hedland hitting record highs in June. The long decline in iron ore prices has been a major blow to profits and incomes in Australia as the mineral is its single biggest export earner.

Beijing has been struggling since the weekend to find a policy formula that would restore confidence to the stock markets.

Maybe we'll see another interest rate cut this weekend.

Asia shares subdued as U.S. data disappoints, fret over Greece, China
| Reuters

China's increasingly volatile markets may upstage Greek concerns in the session, after that country's securities market regulator said it had opened an investigation into suspected market manipulation after a slump of more than 20 percent in Chinese stocks since mid-June.

On Thursday, Shanghai's benchmark composite index .SSEC fell below 4,000 points for the first time since April - a key support level that analysts had expected Beijing to defend.

An investigation into suspected market manipulation always calms investor nerves.

Jackdawracy wrote:

How much would you have to give nonplussed prospective parents to produce offspring, to make it worth their while?

Beer has been enough for many couples.

Outsider wrote:

It's nature.

Sounds like Socialism to me!

Outsider wrote:

They're not having kids because they're broke.

I'm sure once the Troika forces them to cut pensions, that will turn around.

merchants of fear wrote:

Ron Paul: It’s All Coming Apart

Is he talking about his son's Presidential campaign?

Finland’s Prolonged Slump Poses Challenge to New Premier - Bloomberg Business

Finland’s economy contracted in the first quarter as exports and investments declined, increasing the challenge for new Prime Minister Juha Sipila to lead the country out of a three-year slump.

Gross domestic product shrank 0.1 percent for a third consecutive three-month period, according to revised data from Statistics Finland in Helsinki. Data for prior quarters was revised. Three estimates by economists in a Bloomberg survey ranged from 0.2 percent growth to a 0.2 percent contraction. Adjusted for working days, economic output was unchanged from a year earlier.

The northernmost euro member’s economic output remains below its 2008 level as key industries such as paper making and consumer electronics suffer and exports slide. Finnish sales abroad are weighted toward investment goods that suffer from lower demand in times of slack capacity.

“There’s no doubt, this is yet another recession,” Nordea Bank AB economist Pasi Sorjonen wrote in a note to clients. “Maybe we should already start talking about depression. The Finnish GDP profile deviates a lot from those of peers.”

Finance_Fan wrote:

responsible and public policy master Norway

Norway not being a member of either the Eurozone or the European Union, that's a reasonable distinction.

Of course, there's no guarantee that it'll be resolved by 2040, so we probably will want to wait on that one.

Thirty Year War Redux is also a possibility.

I think it's time to retire the concept 'Greek Debt Crisis.'

The Greeks are after all only the first of the patients to reach the blossoming of symptoms. Portugal, Spain, Italy, France and Belgium have the same condition but are so far asymptomatic. Greece is just Patient One.

And while debt is at the center of the debate, the passions aroused show that it really about much more. This is a clash of values, moral, stereotypes and prejudices.

Perhaps crisis was an appropriate noun at one time. But now five years after it began and without a definite diagnosis or a clear prognosis, the time to call it a crisis has passed. It is more of a lingering disease, a malaise. Like malaria there are moments of urgency followed by periods of apparent recovery.

So I propose we begin to call it the 'European Values Malaise'.

Waiting for Godot -- Act 1
VLADIMIR:

Well? What do we do?

ESTRAGON:

Don't let's do anything. It's safer.

VLADIMIR:

Let's wait and see what he says.

ESTRAGON:

Who?

VLADIMIR:

Godot.

ESTRAGON:

Good idea.

VLADIMIR:

Let's wait till we know exactly how we stand.

ESTRAGON:

On the other hand it might be better to strike the iron before it freezes.

VLADIMIR:

I'm curious to hear what he has to offer. Then we'll take it or leave it.

ESTRAGON:

What exactly did we ask him for?

VLADIMIR:

Were you not there?

ESTRAGON:

I can't have been listening.

VLADIMIR:

Oh . . . Nothing very definite.

ESTRAGON:

A kind of prayer.

VLADIMIR:

Precisely.

ESTRAGON:

A vague supplication.

VLADIMIR:

Exactly.

ESTRAGON:

And what did he reply?

VLADIMIR:

That he'd see.

ESTRAGON:

That he couldn't promise anything.

VLADIMIR:

That he'd have to think it over.

ESTRAGON:

In the quiet of his home.

VLADIMIR:

Consult his family.

ESTRAGON:

His friends.

VLADIMIR:

His agents.

ESTRAGON:

His correspondents.

VLADIMIR:

His books.

ESTRAGON:

His bank account.

VLADIMIR:

Before taking a decision.

ESTRAGON:

It's the normal thing.

VLADIMIR:

Is it not?

ESTRAGON:

I think it is.

VLADIMIR:

I think so too.

Silence.
ESTRAGON:

(anxious). And we?

VLADIMIR:

I beg your pardon?

ESTRAGON:

I said, And we?

VLADIMIR:

I don't understand.

ESTRAGON:

Where do we come in?

VLADIMIR:

Come in?

ESTRAGON:

Take your time.

VLADIMIR:

Come in? On our hands and knees.

ESTRAGON:

As bad as that?

VLADIMIR:

Your Worship wishes to assert his prerogatives?

ESTRAGON:

We've no rights any more?

Laugh of Vladimir, stifled as before, less the smile.
VLADIMIR:

You'd make me laugh if it wasn't prohibited.

ESTRAGON:

We've lost our rights?

VLADIMIR:

(distinctly). We got rid of them.

Silence. They remain motionless, arms dangling, heads sunk, sagging at the knees.
ESTRAGON:

(feebly). We're not tied? (Pause.) We're not—

VLADIMIR:

Listen!

They listen, grotesquely rigid. #
ESTRAGON:

I hear nothing.

VLADIMIR:

Hsst! (They listen. Estragon loses his balance, almost falls. He clutches the arm of Vladimir, who totters. They listen, huddled together.) Nor I.

Sighs of relief. They relax and separate.
ESTRAGON:

You gave me a fright.

VLADIMIR:

I thought it was he.

ESTRAGON:

Who?

VLADIMIR:

Godot.

Rob Dawg wrote:

What color uniforms will the Deutsche Bank forces be wearing?

They'll simply repossess the Greek Army uniforms and re-use them.

Mike_PNW wrote:

Yurp pretty much takes July & August off..don't they?

Generally the banks are open during those months. If they remain closed for two months, it's going to be a long hot summer for the Greeks.

Rob Dawg wrote:

U.S. would suddenly find a way to help our good neighbors and long time allies.

I don't think the Chinese are looking for help right now.

If the Greeks vote 'No' in the referendum, that means that the government and the institutions will need to negotiate a new debt agreement.

If the Greeks vote 'Yes' in the referendum, that means that the government and the institutions will need to negotiate a new debt agreement.

As you can see, the outcome of the referendum is vital.

Why has no one suggested that Puerto Rico can solve its debt problems by issuing their own currency?

How many of the hotels are in Puerto Rico?

IMF warns of huge financial hole as Greek vote looms
| Reuters

Unless the European Central Bank lifts the ceiling on emergency funding it provides at its next meeting on Monday, there is little prospect that they will reopen soon.

"We might run out of banknotes by Tuesday if people keep taking out 60 euros a day," one senior banker said.

ECB Governing Council member Josef Bonnici said the value of collateral that Greek banks must offer in exchange for emergency funding would depend on the result of the referendum.

The IMF analysis suggested that, even on the most optimistic assumptions, the Greek economy would remain on life support for many years to come, and that Athens would be forced to persuade its European partners to help.

Loans made by Europe "will need to be extended significantly" and Greece would need further concessional financing, it said.

The ratings agency Standard and Poor's said Greece's economy, which has already shrunk 25 percent since 2009, would contract by another 20 percent within four years if it made a distressed exit from the euro.

skk wrote:

bg check. Shdn't be a problem.

They can't trace you to your HCN id, can they?

Euro banknotes - Wikipedia, the free encyclopedia

Looks like the Greeks are only scheduled to print ten Euro notes.

josap wrote:

Declare all Greek Euro notes forgeries, not acceptable outside of Greece.

So? Most Euro notes circulating in Greece are not Greek notes, though the percentage will rise if other National banks no longer accept Greek notes.

Scenario:

One Sunday afternoon, the police show up at the door of the Governor of the Bank of Greece (the Greek Central Bank.) The man is arrested on suspicion of espionage and taken away to a remote Greek army base where he is held for "questioning". The Prime Minister of Greece dismisses the Governor and appoints a new Governor.

The new Governor increase the cap on ELA by ten billion euros and reduces the haircut on the value of the collateral. Sunday evening, the Prime Minister announces that the banks will reopen Tuesday at their usual times with slightly relaxed capital controls.

What is the ECB's move?

poicv2.0 wrote:

The models are a LOT better looking than the greeters.

They have greeters at Victoria's Secret? Funny, I never noticed them.

Ocean Reef is proud to introduce the Nemo's Garden Project | X-Ray Mag

Nemo’s Garden will be located in the Bay of Noli, in the province of Savona, Italy. The transparent "biospheres" are anchored to the bottom of the sea and float at different depths. Due to the nearly constant temperature between day and night, and the evaporation of the sea water that condenses on the inner walls of the biosphere, it creates an ideal condition for the growth of plants. A sustainable system!

There are 5 different biospheres, varying in size and architecture, floating between the depths of 18 and 36 feet. Each has a series of seedbeds placed inside them to grow crops.

In May Nemo’s Garden Control Center will be installed. From this surface support station on the shore we will be able to monitor the status of crops, communicate with the divers on the project, and control the physical environmental parameters. All of this information will be available on the internet, through a control panel that can be operated remotely.

Cinco-X wrote:

They usually do (or purchase) a salary survey that tells what other employers are paying for similarly skilled employees in the local market

If everyone was just paying what everyone else was paying then there would never be any wage hikes. The problem is the employers who decide to pay median plus inflation for the next year. That gets incorporated into the other employers' survey and they have to raise wages by a proportionate amount.

It's only a matter of time before employers realize that the FOMC inflation target is a scam and begin to cut back wage hikes. But the horse may be out of the barn by then.

josap wrote:

Isn't this what Greece asked for?

If I had a nickel for every time the IMF has told the EU that Greek debt is unsustainable...

Rob Dawg wrote:

uncompensated overtime for economic reasons.

Do we really need a reason for uncompensated overtime?

Traders now betting Fed to wait until 2016 for first rate hike
| Reuters

U.S. short-term interest-rate futures contracts rose on Thursday as a weaker than expected government report on jobs prompted traders to put on bets the Federal Reserve will wait to raise interest rates until next year.

Futures contracts show that traders now see January as the first Fed meeting when a rate hike is more likely than not, based on CME FedWatch, which tracks expectations using its Fed funds futures contracts.

Traders see just a 49 percent chance of a December rate hike, down from 57 percent just before the report was published. The report showed a drop in the U.S. unemployment rate to 5.3 percent which reflected an exit of workers from the labor force rather than a strengthening of the jobs market.

Cr wrote:

Note: CPI has been running under 2%, so there has been some real wage growth.

Wage growth is still at about 2.0% nominal. Any real wage growth has occurred because of the FAILURE of the Federal Reserve to reach its inflation target.

Across the Curve » Blog Archive » Deeper into Negative Territory

The Riksbank cut the repo rate a further 10bps to -0.35%, extended QE from September to end-year, and further
reduced the repo profile to show the risk of a further 6bps of cut by November. The driving factors appear to be a downgrade in the inflation profile over the next three years, and some mention of near-term uncertainties regarding Greece.

Comrade Kristina wrote:

Trump is basically the same thing...

No, Trump talks funny. We need a candidate that southerners don't need subtitles to understand.

Finance_Fan wrote:

a moron bragging about paper profits and then finding out that after crash has nothing has NEGATIVE status.

Worth it if he got laid a couple of times.

Antipodes wrote:

As if American traders are all well educated and smart...

There are times when being well educated and smart is an impediment to making a profit in the stockmarket.

Finance_Fan wrote:

Till then, it's just paper profits.

It's not just the money. Paper profits allow you to gain status around the water cooler or at a cocktail party. The $200,000 dollar handbag shows that status is more important than money.

Finance_Fan wrote:

How/Why on earth did the most powerful government in the planet (in terms of tools at its disposal) allowed this to happen?

They were copying the American model. They figured we'd already worked out the bugs so no sense reinventing the wheel.

Finance_Fan wrote:

These morons didn't even have cross-border deposit insurance.

They technically do but it doesn't actually cover anything yet.

Mary wrote:

Y'all don't even know the NAME of the game.

This is not a charade. It requires Total Concentration.

Hu Knows Quick, fetch a pail! Falling Knife
China stocks retreat despite new moves to stave off crash
| Reuters

Chinese stocks fell on Thursday in another highly volatile session even as regulators intensified efforts to put a floor under the sliding market.

Before the market opened, China's securities regulator relaxed rules on using borrowed money to speculate on stock markets, the latest in a flurry of government measures aimed at stemming two weeks of panic selling that is posing a growing risk to the world's second-largest economy.

On Wednesday evening, China's two major stock exchanges in Shanghai and Shenzhen said they will cut transaction fees effective Aug. 1. China stocks had tumbled some 5 percent earlier in the day, taking losses since mid-June to more than 20 percent.
...
But the moves appeared to have done little to inspire an immediate turnaround in sentiment, with primary indexes slipping again in morning trade.

The CSI300 index fell 2.4 percent by 0233 GMT, while the Shanghai Composite Index lost 3.3 percent.

China CSI300 stock index futures for also July, pointing to further losses.

The People's Daily, official mouthpiece of the ruling Communist Party, said in an editorial that China needs a stable, transparent stock market.

Say, the stock market in Athens might be for sale. Real cheap too.

Domestic investors have seen the sharp correction of Chinese markets as an embarrassment for the country and the government, and many have blamed foreign "ghosts", including the U.S. government, for trying to engineer the collapse by shorting shares in state-controlled train maker CRRC Corp.

"Who is gonna win? It must be China, we cannot lose!" wrote one anonymous poster in a widely recirculated comment on domestic social media.

"If we lose, the global media will report that the Chinese stock market collapsed on the day that the China-backed Asian Infrastructure Investment Bank was established ... Where is our prestige?"

The rumors have been widespread enough that regulators saw fit to publicly deny that foreign investors including Goldman Sachs were shorting the market.

Is this a bring your own parachute flight?