Recent comments by Rajesh

Euro zone business growth slows as ECB meets
| Reuters

Euro zone firms expanded at their slowest rate in six months in June while cutting the prices they charge, surveys showed, signalling business conditions remain tricky as monetary authorities prepare to give a policy update.

Business activity in France, the euro zone's second-biggest economy, shrank at the fastest rate in four months while in Germany, the largest, the pace of growth slowed.

Service providers also said they cut prices for the 31st month running to drum up business, although not as sharply as in May. With June inflation at just 0.5 percent in the euro zone, the surveys will provide worrying reading for policymakers.

I'll take the over on the trade deficit.

sdtfs wrote:

we can actually talk about it.

Why would you want to do that when the World Cup is being played?

ResistanceIsFeudal wrote:

"Inflation is always and everywhere a monetary phenomenon."

If you define 'inflation' in a certain way and 'monetary pheonomenon' broadly enough, that statement has no information content.

ResistanceIsFeudal wrote:

"How much house can YOU afford?!"

"How much house can YOU your bank afford?!" Fixed It For Ya

mr_clueless wrote:

my view is that i grossly underestimated the power of the fed or i would now be sitting pretty.

my view is that i grossly underestimated investors overestimation of the power of the fed or i would now be sitting pretty. Fixed It For Ya

Low nominal interest rates encourages some combination of increased consumption and increased risk taking.

Increased consumption leads immediately to greater economic activity.

Increased risk taking has a much smaller immediate effect on economic activity and an uncertain effect in the longer term.

Nietzsche was a Buddhist?

When does the coup become uncompleted?

Former Idealist wrote:

No more Former Idealist.

Promises, promises.

When does Congress pass Federal Game Assistance for the Poor?

We who are about to thumb; salute you!

I'm trying to cut back on snacks between snacks.

Outsider wrote:

We're stuff addicts

I'm hopeless addicted to food and water. Good thing I don't live in Detroit.

Sitting in a cubicle for eight hours is exhausting!

Everybody agrees that Consensualism won't work.

Outsider wrote:

The only consensus is forced consensus.

I'm forced to agree with that.

Outsider wrote:

What is that again?

Liftoff of Monetary policy!

China’s Repression of Savers Eases - Bloomberg

China’s economic slowdown risks making it tougher for companies to repay debt, after years during which they could count on sales outpacing borrowing costs. The gap between the lending rate and growth, unadjusted for inflation, has narrowed to about 100 basis points from an average of about 1000 basis points since the start of 2001, Pettis said.

“This changes everything in China,” said Pettis, author of “Avoiding the Fall: China’s Economic Restructuring.” “First, it is now much harder for borrowers to justify investment in non-productive projects because they can no longer count on the huge gap between nominal GDP growth and the lending rate to bail them out of bad investments. Second, the huge transfer from net savers to net borrowers has collapsed, so that growth in the future must be far more balanced.”

Low returns on savings and cheap loans are root causes of the nation’s reliance on investment for growth, Pettis said. It helps explain why household consumption’s share of GDP fell to 36.2 percent last year from 46.4 percent in 2000, according to researcher Capital Economics Ltd. in London.

Komatsu CEO Flags China Slump as Mining Nears Bottom - Bloomberg

Komatsu Ltd. (6301), the world’s second biggest maker of building and mining equipment, said sales in China are falling more steeply than anticipated, joining larger peer Caterpillar Inc. (CAT) in flagging fraying Asian demand.

Komatsu’s sales in China, where economic growth is slowing, dropped dramatically in April and May and it will probably miss its annual target for the nation, Chief Executive Officer Tetsuji Ohashi said in an interview, citing delays to the start of some construction projects. At the same time, he said the bottom for mining machinery demand could be nearing.

As a seller of equipment to both mining and construction companies, Komatsu is particularly vulnerable to fading growth in China, the world’s second-biggest economy and its biggest buyer of raw materials.

“Since the impact of China is big, we will closely monitor the situation,” Ohashi, 60, said at the company’s Tokyo headquarters last week.

sm_landlord wrote:

Those loans are seven or eight years old at this point

Default rates turns sharply higher once the loans reach ten years and principle is required to be repaid.

In honor of the man who ran the IMF during:

  • 1989 United States Savings & Loan crisis
  • 1990 Japanese asset price bubble collapsed
  • early 1990s – Scandinavian banking crisis: Swedish banking crisis, Finnish banking crisis of 1990s
  • 1992–93 – Black Wednesday – speculative attacks on currencies in the European Exchange Rate Mechanism
  • 1994–95 – 1994 economic crisis in Mexico – speculative attack and default on Mexican debt
  • 1997–98 – 1997 Asian Financial Crisis – devaluations and banking crises across Asia
  • 1998 Russian financial crisis

Janet Yellen is going to give a talk about Financial Stability.

josap wrote:

Grand Cru has 35 employees.

Revenue stream?

T minus sixteen months and counting...

I'm waiting for Iron Chef Watson.

Antipodes wrote:

How long before a business owned or run by Christian Scientce believers decides they should not pay for health insurance for any of their employees based on their religious grounds?

They would provide "health insurance" by paying the local Christian Scientist practitioner to provide "healing" to their employees when they get sick.

Yoringe wrote:

Bailout or be " unstable"

Austria has cleverly chosen the Bailout AND be unstable plan.

Firemane wrote:

They don't have to ACTUALLY backstop everything.

That works until it doesn't.
Banking debacle sees Austria worry about its financial reputation 

Now, in 2014, the Austrian government has decided to turn Hypo Alpe Adria into a bad bank. Parliament hearings on the so-called 'Hypo law' took place earlier this month.

In essence it bypasses a guarantee by the province of Carinthia and forces losses on investors. It is expected to trigger a flood of lawsuits, both at home and abroad.

The government drew up the law to ensure that not just taxpayers have to bear the cost of winding down the bank – a first for debt markets.

But many politicians fear it will damage Austria’s reputation as a stable financial market.

Outsider wrote:

he's closer to the Arctic than the Antarctic.

The Russians have a base in Antarctica.

I think Putin is Bipolar.

Vonbek777 wrote:

had more money to make go up in smoke!

That adds to GDP!

1 currency now -yogi wrote:

WHAT was manufactured

Is this some version of Clue?

Profits was manufactured
FOR %1

The economy is accelerating...

in a negative direction.

French manufacturing shrinks in June at fastest rate in six months: PMI
| Reuters

French manufacturing activity shrank at the fastest rate in six months in June as firms cut production for the first time in five months and new orders dropped at the quickest rate this year, a survey showed on Tuesday.

In its monthly snapshot of activity in the long-struggling sector, data compiler Markit said its final purchasing managers' index fell to 48.2 in June from 49.6 in May.

Not a good time for recession with the vacancy rate not yet recovered from the last recession.

lawyerliz wrote:

Why does anyone loan them money?

Argentina defaulted on $100 billion a decade ago. The people who were owed are now trying to get cents on the dollar...
and failing.

emergency hotdog linked:

been to the moon and back

Did they bring back any souvenirs?

“He may look like an idiot and talk like an idiot but don't let that fool you. He really is an idiot.”
― Groucho Marx They only call it a class war when we fight back

Bubblisimo Gerkinov wrote:

I intend to live forever ...

or die trying.

Bubblisimo Gerkinov wrote:

A child of five could understand this.

Send someone to fetch a child of five.

“Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly and applying the wrong remedies.”
― Groucho Marx They only call it a class war when we fight back

Bubblisimo Gerkinov wrote:

I have nothing but respect for you

And not much of that.

Bubblisimo Gerkinov wrote:

Those are my principles, and if you don't like them...

I have others.

Bubblisimo Gerkinov wrote:

One morning I shot an elephant in my pajamas.

How he got in my pajamas, I'll never know!

U.S. jobs growth likely to be relatively strong in June
| Reuters

Nonfarm payrolls probably increased 212,000, marking the fifth consecutive month of job gains above 200,000, according to a Reuters poll of economists. That, together with signs of a housing recovery, would cement views that growth has rebounded.

"The economy is certainly headed in the right direction," said Millan Mulraine, deputy chief economist at TD Securities in New York. "While the momentum in the labor market has shifted modestly lower from the last two months, it's still quite strong."

How is 210,000 considered 'strong job growth'?

The unemployment rate is forecast to remain at a 5-1/2 year low of 6.3 percent. But with college graduates expected to enter the labor market as they normally do in June, the labor force could increase and result in the jobless rate ticking-up.

The Supreme Court endorses Single Prayer Healthcare!

Can an employer for religious reasons, provide her employees healthcare coverage that prohibts or requires extreme measures for end of life care?

If my religious beliefs include smoking marijuana every day, can I provide my employees with a healthcare plan that pays for daily doses of Currently Smoking Cannibis ?

UPDATE 3-Bulgaria's bank crisis eases after Europe approves credit line
| Reuters

Queues still formed outside branches of First Investment Bank, but they were smaller than Friday's and by lunchtime they had disappeared in central Sofia.

Approval of Sofia's request to provide 3.3 billion levs ($2.3 billion) in state aid - a precautionary measure - helped shares in First Investment Bank rise 27 percent, reversing Friday's losses.

Echoing the International Monetary Fund, the EU executive also said the Bulgarian banking system was "well capitalised" - comments that also helped to soothe the situation.

"People have clearly calmed down, which was to be expected after all the statements," said Petar Ganev of the Sofia-based Institute for Market Economics.

"However, there are still risks of new attacks against the banking system as no doubt this was a well-prepared attack ... I hope people, including the politicians, have learned from all this because it is essential to restore confidence," he said.

To ease pressure on liquidity at Bulgarian lenders, the central bank separately announced a cut in the collateral requirements for banks getting access to local currency funding, to 110 percent from 125 percent of the funding requested.