Recent comments by Rajesh

robj wrote:

This is Abuse!

Did you pay for an half-hour or a full hour of Abuse?

Decoupling 2011: Emerging Markets can grow despite weak developed economy
Decoupling 2015: US can grow despite weak Emerging Markets.

Japan’s Industrial Production Unexpectedly Declines in July - Bloomberg Business

Japan’s industrial production unexpectedly fell in July, sapping a rebound in the economy from a slump last quarter.

Output fell 0.6 percent from June, when it increased 1.1 percent, the trade ministry said on Monday, compared with the median forecast for a 0.1 percent gain in Bloomberg survey.

The world’s third-biggest economy is struggling to recover from a contraction, as slowing growth in China -- Japan’s biggest trading partner -- weighs on exports. Household spending unexpectedly declined and the Bank of Japan’s key inflation gauge slowed to zero for a third time this year, data for July showed last week.

“Production is sluggish because private consumption and exports remain weak," said Toru Suehiro, an economist at Mizuho Securities Co. "Concern about China and emerging economies is posing a risk to output."

I find the assertion that California is wasting less than a billion dollar not at all credible.

There is James Monroe's inability to annex Canada during the war of 1812.

lawyerliz wrote:

Why are our rich so cheap?

If you understand why you got rich, then you feel free to spend because you know you can always become rich again.

If you think becoming rich is a freak accident, then you are careful about spending because lightning doesn't strike twice.

We don't want Canadians coming across the border and making use of our squalor. It should be reserved for Americans.

Jackdawracy wrote:

So does Huck up the rhetoric ante by proposing to build a giant edifice around Wall*Street?

I don't think we need a statue to the Unknown Inside Trader.

Jackdawracy wrote:

Astral Dome?

We have to auction off the naming rights of course.

Jackdawracy wrote:

We'd better wall up, man.

Is the sky really safe? Maybe we need to build a large dome.

Italy's Eni finds 'supergiant' natural gas field off Egypt - Houston Chronicle

The Italian energy company Eni SpA announced Sunday it has discovered a "supergiant" natural gas field off Egypt, describing it as the "largest-ever" found in the Mediterranean Sea.

The news came a day after Eni CEO Claudio Descalzi met in Cairo with Egyptian President Abdel-Fattah el-Sissi, the Egyptian leader's office said.

Eni said the discovery — made in its Zohr prospect "in the deep waters of Egypt" — could hold a potential 30 trillion cubic feet of gas over an area of 100 square kilometers (38.6 square miles).

It's about time that someone talked about all the criminals coming across our other border.
Scott Walker: Voters have “very legitimate concerns” about Canadian border - The Washington Post

Wisconsin Gov. Scott Walker (R) says the United States needs to secure all its borders — and that includes reviewing security on the far-less-controversial northern border it shares with Canada, the longest border in the world at 5,525 miles.

Walker has long said that securing U.S. borders, especially the southern border with Mexico, is not only a deterrent to illegal immigration but also a way to ensure that terrorists and international criminals do not enter the country. During an interview on NBC News's "Meet the Press" that aired Sunday morning, Walker pointed out that the United States spends millions of dollars on security at airports and ports and that it "only makes sense" to also pay that level of attention to the borders, including the one with Canada.

Moderator Chuck Todd asked Walker whether he would support building a wall along the long northern border.

"Some people have asked us about that in New Hampshire," Walker responded. "They raised some very legitimate concerns, including some law enforcement folks that brought that up to me at one of our town hall meetings about a week and a half ago. So that's a legitimate issue for us to look at."

Walker added that securing the borders means not just building a wall but also ensuring that the "intelligence community has the ability for counterterrorism and the ability to go after the infrastructure they need to protect us."

I think that's a promise to bomb Canadian highways to prevent terrorist from reaching the U.S.

sm_landlord linked:

Fed, ECB, BOE Officials All Say They See Inflation Rising

Mark to model policy making. It worked for the banks.

josap linked:

Sanders Within Striking Distance of Clinton in Iowa

How do they determine Sanders' striking distance? Is he a snake or maybe a baseball pitcher?

Thermonuclear explosion is the first thing I think about when breaking someone out of prison. Cuts right through the wall.

robj wrote:

I thought Cali was a no smoking state.

Currently Smoking Cannibis Depends on the type of smoke.

Rob Dawg wrote:

The list will never go below 19.

If Citicorp bought State Street...

Four cups a day increases your chance of heart attacks. Five cups a day reduces your chance of a heart attack. So don't drink four cups a day. Three cups is safe and five cups is even better but FOUR CUPS is deadly.

Brace for Quantitative Tightening, As China Leads Forex Reserves Purge - NDTVProfit.com

Faith in the power of "quantitative easing" has prompted central banks, led by the US Federal Reserve, to pump trillions of dollars of stimulus into the global financial system to cushion the impact of the 2007-08 market crisis and recession.

This supply of liquidity continues to flow. The European Central Bank has taken the baton from the Fed and is leading the way with its 1 trillion euro ($1.1 trillion) bond-buying programme that will run through September next year. The Bank of Japan is also buying large quantities of bonds.

But a counter flow - call it "quantitative tightening" - is gathering force as China sells foreign exchange reserves to protect its economy and markets from the recent surge of capital out of the country. Other emerging markets are following suit.

Analysts at Citi estimate that global FX reserves have been depleted at an average pace of $59 billion a month in the past year or so, and closer to $100 billion over the last few months. A source at another large global bank said emerging market central banks may have sold up to $200 billion of FX reserves this month alone, of which $100-$150 billion likely came from China.

Year over year increase in PCE price index of 0.3%

but we can't raise interest rates.

Note that Freddie Mac and Fannie Mae are stepping up sales of distressed mortgages, which will lower the delinquency rate of mortgages on their books faster than the actual decline in mortgage delinquency.

Rob Dawg wrote:

FB has a third of them and they all checked in on the same day?

Corporations are people.

Blackhalo wrote:

Is Miami considered East Coast, Gulf Coast, or Caribbean?

I think South America and Cuba annexed Miami a few years ago.

Ultra-low German inflation keeps pressure on ECB
| Reuters

"While low inflation or even negative inflation rates are a blessing for German consumers, they could become a new headache for the ECB," he said.

The recent oil slump, which has centred on concerns over slowing Chinese growth, is complicating the ECB's efforts to push inflation in the euro zone back towards its target over the medium term via bond-buying.

Economists expect the recent tumble in commodity prices to force the ECB to downwardly revise its inflation forecasts after the Sept. 3 governing council meeting.

But Brzeski expects the central bank to hold off on further measures to ward off deflation.

"I think they will give hints next week that they might step up QE rather than reducing the QE efforts but right now it's too early for them to take concrete action."

Fleecing rich people is an important societal function.

Venezuela Is Adding More Zeroes to Its Currency to Deal With Hyperinflation - Bloomberg Business

Venezuela is preparing to issue bank notes in higher denominations next year as rampant inflation reduces the value of a 100-bolivar bill to just 14 cents on the black market.

The new notes -- of 500 and possibly 1,000 bolivars -- are expected to be released sometime after congressional elections are held on Dec. 6, said a senior government official who isn’t authorized to talk about the plans publicly.

Many Venezuelans have to carry wads of cash in bags instead of wallets as soaring inflation and a declining currency increase the number of bills needed for everyday purchases. The situation is set to get worse. Inflation, already the fastest in the world, could end the year at 150 percent, said the official.

The government stopped releasing regular economic statistics in December, when it reported inflation had reached 69 percent.

A customer would need at least 1,280 bank notes to purchase a 24-inch Samsung television on sale at a mall in eastern Caracas for 128,000 bolivars. Some banks, meanwhile, have reduced daily withdrawal limits at ATMs because of shortages of the highest denominated notes.

Blackhalo wrote:

Wasn't the last launch date cancelled due to bad financial weather in Greece?

Comment by Rajesh from thread 'Friday: New Home Sales'

Blackhalo wrote:

1st week of November?

We have a hold on the countdown due to the Chinese instability.

Blackhalo wrote:

13 weeks 'til what?

Lift off of monetary policy.

T minus thirteen weeks and holding...

Ackman says Pershing Square down for the year after markets drop
| Reuters

William Ackman's hedge fund Pershing Square Capital Management is down for the year so far after the recent market decline, the billionaire investor told investors on Wednesday.

"At the date of this report, the year to date investment performance has been erased, and the Company is at a loss position for the year," the hedge fund said in its interim financial statement.

The fund had been up 10.1 percent for the year through the end of July. Since then global markets have been roiled by concerns over sharp declines in Chinese stock prices.

Don't try this at home, folks. These are investment professionals.

Inflation is low and that was before oil prices fell to a six year low.

Those Deviations were not standard. The manufacturer needs to recall them.

sm_landlord wrote:

Maybe we'll get an emergency rate cut.

You got one this morning. You want another one already?

Is this the short squeeze someone keeps mentioning?

Home prices buoyed by rents rising faster than wages.

CBO says U.S. revenue gains push down deficit, delay default
| Reuters

The stronger-than-forecast tax collections mean that the U.S. Treasury's extraordinary cash management measures, employed since a debt limit extension expired in March, can stave off a federal default on payment obligations a bit longer.

The CBO previously said that the Treasury would likely exhaust all remaining borrowing capacity in October or November. In its latest guidance, it said that deadline will now likely come between mid-November and early December due to the additional revenues.

The CBO also revised its forecast for real gross domestic product growth for 2015 to 2.3 percent from 2.8 percent, bringing it in line with private forecasters. The data used for the changes, however, was locked on July 7, before the start of a global sell-off in financial markets sparked by worries about China's economic slowdown.

Bruce in Tennessee wrote:

surely Janet saw this coming?

Yes, that's why she's on vacation this week.

Hu Knows Emergency rate cut.
China central bank cuts rates, reserve ratio to aid stumbling economy
| Reuters

China's central bank cut interest rates and simultaneously relaxed reserve requirements for the second time in two months on Tuesday, cranking up support for a stuttering economy and a plunging stock market that has sent shockwaves around the globe.

The People's Bank of China (PBOC) said on its website that it was lowering the one-year benchmark bank lending rate by 25 basis points to 4.6 percent, effective from Aug. 26.

The central bank also reduced one-year benchmark deposit rates by 25 basis points, it said.

At the same time, the PBOC said it was also lowering the reserve requirement ratio by 50 basis points to 18.0 percent for most big banks. The change will be effective on Sept. 6.

The move comes after Chinese stock indexes nosedived more than 7 percent, hitting their lowest levels since December, following their more than 8 percent plunge on Monday.

The central bank shocked global markets by devaluing the yuan CNY=CFXS by nearly 2 percent on Aug. 11. The PBOC called it a free-market reform but some saw it as the start of a long-term yuan depreciation to spur exports.

Blackhalo wrote:

"It's not a loss until you sell..."

or the stock gets canceled in bankruptcy.

Nemo wrote:

Maybe the PBOC should try lowering interest rates

Chinese investors are clamoring for Required Reserve Ratio cut. They sold when it wasn't announced this weekend.

Fed's Lockhart sees interest rate hike 'sometime this year'
| Reuters

The Federal Reserve will likely begin raising interest rates this year, but a strengthening dollar and a drop in oil prices make forecasting economic growth difficult, a top U.S. central banker said on Monday.

"I expect the normalization of monetary policy — that is, interest rates — to begin sometime this year," Atlanta Fed President Dennis Lockhart said in remarks prepared for delivery to a forum on public pension funding in Fed Chair Janet Yellen's home town. "I expect normalization to proceed gradually, the implication being an environment of rather low rates for quite some time."

Lockhart is considered a centrist on the Fed's policy-setting panel, which is set to consider its first rate hike in nearly a decade when it meets next month. When he last spoke two weeks ago, he said the time for raising rates was "close" and signaled he was disposed to vote for raising interest rates in September.

Monday's remarks suggested he may have retreated somewhat from that view. His speech, which largely focused on public pensions, made only oblique reference to the market turmoil that has prompted some economists to push back their expectations for a rate hike until later in the year, or even into 2016.

"Currently, developments such as the appreciation of the dollar, the devaluation of the Chinese currency, and the further decline of oil prices are complicating factors in predicting the pace of growth," he said, reiterating his own bank's baseline forecast of moderate economic growth, continued employment gains, and gradually rising inflation.

T minus thirteen weeks and holding...

South Africa Says It May Act on Currency If Risks Worsen - Bloomberg Business

The South African Reserve Bank may consider intervening in the currency market if risks to financial markets worsen following the rand’s collapse to a record low.

“In the event of developments that threaten the orderly functioning of markets or that may have financial stability implications, the SARB may consider becoming involved in foreign-exchange markets to ensure orderly market conditions,” the central bank said in statement on its website.

The currency of Africa’s most-industrialized economy weakened as much as 8.5 percent to an all-time low of 14.0682 against the dollar on Monday before trimming losses. South African assets are under pressure as the price of commodities from platinum to iron ore retreat and concern mounts that economic growth is slowing in China, its top export destination.

“While we are concerned about excessive volatility, the SARB is committed to the exchange rate of the rand being set by market forces,” the bank said. This “does not suggest that the SARB is completely indifferent to exchange rate movements.”

Not completely indifferent: You can't get a more ringing endorsement of a currency!

Mary wrote:

who's got money to burn like that?

It's like spending a billion dollars to be elected President of the U.S.

Residual Seasonality strikes again.
U.S. inflation probably lower than reported, Fed study says
| Reuters

U.S. inflation in the first half of the year was probably "markedly lower" than reported, but policymakers are unlikely to set interest rates incorrectly as a result, according to an analysis published Monday by the San Francisco Federal Reserve Bank.

Researchers at the regional Fed bank had earlier found that the very weak readings for economic growth in the early part of the year were likely due to inadequate adjustments for seasonal fluctuations, and that true economic growth was probably much faster than reported.

The same researchers applied similar methodology to inflation data and found that core PCE inflation, the Fed's preferred gauge, was probably overstated by 0.3 and 0.2 percentage points in the first two quarters of the year, respectively.

The analysis could cast doubt on whether Fed policymakers can be confident that inflation is headed back to their 2-percent goal, the hurdle they have set for raising interest rates as soon as next month.

But the economists, led by San Francisco Fed chief researcher Glenn Rudebusch, found that because the policymakers take into account both of their goals of full employment and stable prices when setting policy, the overstatement of inflation in the reported data is unlikely to spur them into raising rates too soon.

"We estimate that inflation was lower and economic growth was faster during the first half of this year than currently reported in the published data," the researchers wrote. "However, policymakers realize that any single piece of data, even a comprehensive measure like GDP, has to be taken with a grain of salt. Because of this, they are unlikely to be misled by the transitory statistical noise arising from residual seasonality."

lawyerliz wrote:

It looks like the country really screwed is Japan.

After two decades of it, they're beginning to enjoy it.

Another tough day for the doomers.