Recent comments by Rajesh

ResistanceIsFeudal wrote:

nourishment from the sun directly.

You probably oppose the solar tax the climate deniers are trying to push.

Jackdawracy wrote:

Not really sure why an apology was in order...

The real armpit of America demanded one?

Russian Woes Worsen as Recession Looms With Banks in ‘Panic’ - Bloomberg

Russia’s economic crisis deepened as the government acknowledged it’s heading for recession and a former central banker spoke of “some panic” in the financial system as oil prices plunged.

Speaking a day after President Vladimir Putin said Russia is scrapping a proposed $45 billion pipeline to Europe, the government predicted the economy will contract next year and canceled a bond auction. It was also forced to pledge 39.95 billion rubles ($740 million) to support OAO Gazprombank, at least the third lender to secure a capital injection since U.S. and European Union sanctions curbed their ability to borrow.

T minus eleven months and counting...

In a steam-ship, the boiler room has the hardest and most dangerous jobs. The work was hot and explosions were not uncommon.

Proud Mary was a boiler.

CCR - Proud Mary (with lyrics) - YouTube

If the economy is fixed, why aren't the rich richer?

If the economy is fixed, why is everyone complaining that's it's broken?

The fundamental problem is that standard economics only has two words for the state of the economy: growth and recession. This dichotomy hides a multitude of sins. It makes all growth periods equal even though some periods show much stronger growth and some much weaker. In the same way it makes all recessions the same. There is no room for the Great Recession to be great.

So we have to make up terms like growth recession, disinflationary growth episode, soft landing, V-shaped, U-shaped and L-shaped.

It's important not only to predict the next recession but to predict what kind of recession it will be. Another balance sheet recession, an inventory cycle recession, or maybe some kind we haven't seen before.

We need to admit we don't really understand the economy and what makes it healthy.

Detroit would benefit from money spent destroying infrastructure, so that existing tax revenue would have a smaller maintenance burden.

Bridges to nowhere never make economic sense, no matter how low the interest rate is.

sm_landlord wrote:

current norms in the banking industry tend to favor dishonesty.

Mission Accomplished!

Disinflationary Growth Episode (sometimes known as "soft landing")

Outsider linked:

Google: You can pay as little as $1 to see fewer ads

Will they pay me to see more ads?

RE wrote:

Don't they have to pay back 100% of the loan?

If the bank provides $10.0 million in treasuries as collateral, the Reserve Bank will lend $9.99 million. The bank gets back its collateral when they pay back the $9.99 plus accrued interest.

RE wrote:

upfront penalty of 1%

It's just a haircut on the value of the collateral. The banks don't pay the 1%.

poicv2.0 wrote:

cost of borrowing at 0.25% at the Discount Window

The lending rate (now known as the primary lending rate, formerly the discount rate) at the discount window is 0.75%.

More families living in cars?

Vonbek777 wrote:

Though I've been told I resemble Attila a little.

Is it possible you smell like a horse?

lawyerliz wrote:

Couldn't he have picked some other vice?

Lying to Congress was already taken.

T minus twelve months and counting...

Outsider wrote:

In a Michael Hudson link here the other day, he stated as nations get more affluent, they want more autos.

That was before iPhones were invented.

KarmaPolice wrote:

Something will crack...we can be sure of that.

Russia says in talks with Venezuela over countering oil price falls
| Reuters

Russia and Venezuela discussed joint action to combat falling oil prices, Russian Energy Minister Alexander Novak said on Tuesday after holding talks with Venezuela's Foreign Minister Rafael Ramírez the day before.

Asked if the two discussed joint moves to counteract the oil price falls, Novak told reporters: "Yes, there is such an initiative. We discussed this theme and now we are working out those proposals on our side."

Novak said his next meeting with Venezuelan officials will take place on Nov.25 and expected a more detailed discussion on the matter then. He refused to give any more detail.

Previous overtures between OPEC and Russia have not produced results.

Perhaps Russia will pay Venezuela not to produce oil?

Socialism for Rich People is the only respectable form of socialism in America.

Rob Dawg wrote:

New trading ETF collapsable housing symbol YURT

Can't you just short the home-builder ETF?

Soft exports is the new trend, creating a drag on GDP. U.S. growth is not decoupled from global growth (especially China.)

arthur_dent wrote:

I was under the impression that many corporations had borrowed against those foreign profits to pay dividends etc

Using foreign cash flows to pay interest or principle of domestic debt would constitute a repatriation event and thus incur taxes. Corporations are thus limited to borrowing against domestic cash flows in order to fund dividends and buybacks. The foreign cash is thus reporting cash and not spending cash as it can not be used for the benefit of the shareholders. In effect, that money now belongs to management.

sporkfed wrote:

If corporations did repatriate all that cash, how would that Impact liquidity overseas ?

Much of the "cash" is held in short-term dollar denominated securities in "segregated" account in the U.S. This would have no effect on overseas liquidity. If the "cash" is paid out to shareholder, the effect on liquidity would depend on what those shareholders did with the money they received. If they held it in money market accounts, it would have no effect on liquidity. If they reinvested in stocks, then the decision about the cash transfers to the new recipient. Only when the cash is spent does liquidity diminish.

Mary wrote:

PASOK is the party that controlled Greece's parliament and cabinet for some 40 years, through a multi-decade RE "boom," two right state "bail outs," and up to the Panic of '08 and the third dance with "the troika."

Kostas Karamanlis - Wikipedia, the free encyclopedia

Konstantinos Alexandrou Karamanlis, commonly known as Kostas Karamanlis (Greek: Κωνσταντίνος Αλεξάνδρου (Κώστας) Καραμανλής, pronounced [konstanˈdinos alekˈsanðru ˈkostas karamanˈlis]; born 14 September 1956), was Prime Minister of Greece from 2004 to 2009. He was also president of the right-conservative New Democracy party, founded by his uncle Konstantinos Karamanlis.

Belmont wrote:


Italy's economy is larger than Canda's, Russia's or Brazil's.

Obviously, the poor Japan GDP report indicates that the Bank of Japan isn't printing enough money.

Bubblisimo Gerkinov wrote:

Why are the Dems trying to block the deportation of illegal aliens?

They are trying to prevent wage cost from rising for American companies.

Does McDonald's accept SNAP?

KarmaPolice wrote:

What is the GOP platform for 2015?

No hope and no change!

This is reassuring.
Republicans weigh government shutdown to stop Obama on immigration
| Reuters

One Republican leader on Sunday held open the possibility that his party could move to shut down the government in an attempt to stop President Barack Obama from taking executive action on immigration policy.

A vocal group of conservatives in the House of Representatives is pressing to use government funding as leverage to prevent any White House moves that would allow millions of undocumented immigrants to stay and work in the United States.

Several Republicans, including some in leadership, have said they were trying to find alternatives that would stop short of directly threatening a government shutdown, and Republican lawmakers on Sunday talk shows acknowledged that the shutdown threat was a less than ideal approach.

"It doesn't solve the problem. But look, we're having those discussions... We're going to continue to meet about this. I know the House leaders are talking about, the Senate leaders are talking about it," said South Dakota Republican John Thune, who chairs the Senate Republican Conference, on "Fox News Sunday".

"Republicans are looking at different options about how best to respond to the president's unilateral action, which many people believe is unconstitutional, unlawful action on this particular issue."

I don't who is surprised by a recession following a massive tax increase.

Among the calamities of war may be justly numbered the diminution of the love of truth, by the falsehoods which interest dictates and credulity encourages.

Samual Johnson - WikiQuote

Quantities are limited. We can not guarantee this price for more than seven days. Act now!

Outsider wrote:

Putin plans to leave G-20 early

Putin is a crybaby.

Doctor Critically Ill With Ebola Headed to U.S. Hospital - Bloomberg

A “critically ill’ patient infected with the Ebola virus in Sierra Leone will arrive in Omaha today after he was deemed stable enough for travel to the Nebraska Medical Center for treatment.

The unidentified patient boarded a Phoenix Air plane from the West African country late yesterday, the hospital said in a statement. He may be more sick than the other patients who survived treatment in the U.S., according to the hospital.

Phoenix Air’s medical evacuation planes are equipped with a special tented isolation unit called an Aeromedical Biological Containment System to keep the patient from infecting others.

The United Methodist Church said yesterday that Martin Salia, chief medical officer and surgeon at United Methodist Kissy Hospital in Freetown, was being assessed to see whether he was well enough to be transported to Nebraska. Salia is a U.S. legal permanent resident who was working in Sierra Leone, the U.S. State Department said in a statement.

Do we need to add Nebraska to the Ebola travel ban?

The world’s biggest chocolate-maker says we’re running out of chocolate - The Washington Post

There's no easy way to say this: You're eating too much chocolate, all of you. And it's getting so out of hand that the world could be headed towards a potentially disastrous (if you love chocolate) scenario if it doesn't stop.

Those are, roughly speaking, the words of two huge chocolate makers, Mars, Inc. and Barry Callebaut. And there's some data to back them up.

Chocolate deficits, whereby farmers produce less cocoa than the world eats, are becoming the norm. Already, we are in the midst of what could be the longest streak of consecutive chocolate deficits in more than 50 years. It also looks like deficits aren't just carrying over from year-to-year—the industry expects them to grow. Last year, the world ate roughly 70,000 metric tons more cocoa than it produced. By 2020, the two chocolate-makers warn that that number could swell to 1 million metric tons, a more than 14-fold increase; by 2030, they think the deficit could reach 2 million metric tons.

The problem is, for one, a supply issue. Dry weather in West Africa (specifically in the Ivory Coast and Ghana, where more than 70 percent of the world's cocoa is produced) has greatly decreased production in the region. A nasty fungal disease known as frosty pod hasn't helped either. The International Cocoa Organization estimates it has wiped out between 30 percent and 40 percent of global coca production. Because of all this, cocoa farming has proven a particularly tough business, and many farmers have shifted to more profitable crops, like corn, as a result.

We need a national strategic Cocoa Reserve.

lawyerliz wrote:

How can a gun manufacturer be in trouble, with all the sales?

Lever up!
Dividend out!
Default down!
In Bankruptcy!

RE wrote:

That Italian ex-minister might not remember Italian interest rates before the Euro.

You mean positive?

josap wrote:

They should be sending him a bonus check.

If they time it right, it will bounce.

Do we need a draft Nixon movement?

Royal Bank of Scotland to exit U.S. mortgage business
| Reuters

Royal Bank of Scotland Plc's securities unit will now exit its U.S. mortgage trading business after originally planning to shrink it by two-thirds.

Exiting mortgage backed-security, commercial real estate and commercial mortgage-bond sales and trading "is a necessary part of repositioning our US business," an RBS spokesman said in an emailed statement.

RBS said in May it will eliminate hundreds of jobs in the United States over the course of two years to help reduce assets ahead of new rules by the U.S. Federal Reserve.

The largest foreign banks, with $50 billion or more in U.S. assets, need to set up an intermediate holding company subject to the same capital, risk management and liquidity standards as U.S. banks, the Fed said in February.

"We have made significant progress against our goals and are well ahead of plan," the RBS spokesman added.

Rob Dawg wrote:

Wage inflation will accelerate displacement and automation of labor.

That's what Roger Smith, former CEO of GM said. He believed automation was the only way that GM could avoid bankruptcy, so he borrowed a bunch of money to install robots in the GM factories.

Venezuelan Bonds Plummet as Devaluation Is Spurned - Bloomberg

Bond investors are abandoning Venezuela as President Nicolas Maduro’s administration signals the nation doesn’t intend to devalue the currency with sinking oil prices undermining its ability to pay debt.

The country’s $4 billion of dollar-denominated debt due 2027 plummeted to an almost six-year low of 55.10 cents on the dollar yesterday after Finance Minister Rodolfo Marco Torres said this week that there’s “no devaluation planned.” The securities have fallen 14.1 percent this month, posting the biggest drop in emerging markets over that span.

Concern is deepening that Maduro isn’t moving fast enough to bolster the nation’s finances at a time when the price of its oil, which accounts for about 95 percent of Venezuela’s exports, has plunged 28 percent since June to a four-year low. A devaluation would give the government more bolivars for each dollar of export revenue from state oil monopoly Petroleos de Venezuela SA and narrow its price gap in the black market, where the local currency is 94 percent cheaper.

Hu Knows Im Lovin It!
China property investment slows further, but slump in sales shows signs of easing
| Reuters

Property sales fell 1.6 percent in October in terms of floor space, easing substantially from September's 10.3 percent drop.

That came after Beijing announced steps in September to support the sluggish property market, including lower mortgage rates and down payments for some home buyers

"Those are early signs that there may not be a collapse of the property market and the recent measures may have stabilized the momentum of property investment," said Shuang Ding, an economist at Citi in Hong Kong.

The NBS data also showed mortgage loans to home buyers dropped 4.3 percent in the first 10 months of 2014, easing from the drop of 4.9 percent in January-September, as banks quickened their mortgage approvals and started to provide preferential rates to some home buyers.

The Chinese economy is collapsing at a slower pace!