Recent comments by Rajesh

Doc Holiday wrote:

Big Al wanted debt to be more available

The debt was already created during the Revolutionary War (by the states and assumed by the Federal Government). Hamilton ran budget surpluses (from tariffs on imports) to pay the interest and to redeem part of the debt. The two parties that developed only disagreed about how quickly to pay off the national debt (until Thomas Jefferson went further into debt to fund the Louisiana purchase.)

Oji wrote:

it's retaining talent.

We're not going to find another bunch of Yahoo's with the same skill in destroying the economy. We better keep these.

Hu Knows Im Lovin It!
China's Sept property investment slows further; sales, construction slump
| Reuters

Facing cash flow pressures and a tougher time getting credit, developers have been cutting prices and offering increasingly sweet promotions to entice home buyers and reduce the backlog of unsold units.

They have also been cutting back on land purchases, which is crimping revenues for local governments, many of which are saddled with high levels of debt.

"Many developers are controlling their gearing by buying less land and slowing construction," said Kim Eng Securities analyst Karen Kwan in Hong Kong.

"They're still waiting for a good time to buy, but this won't come until there's a change in financing signals."

U.S. Inflation
month   CPI     Core CPI   PCE   Core PCE Updated
September 2014   1.67   1.74       1.48     1.49

Whiskey wrote:

78-day moving average

Simple, exponential or hypercomplex

robj wrote:

It shocks me to learn that a volatility index is volatile.

The volatility of volatility is rising. That's a bad sign, maybe.

or maybe not:
CBOE - CBOE VIX of VIX (VVIX) Micro Site


picosec wrote:

I gotta spend more time here.


U.S. Agencies to Require CLO Managers to Retain 5% of Deals - Bloomberg

“The rule needlessly puts in place cumbersome requirements that will materially reduce the CLO market and puts in jeopardy a critical source of credit for job-creating American companies,” Bram Smith, executive director of the LSTA, wrote in an e-mailed statement today. The regulation “will negatively impact American credit markets and make financing for U.S. companies more expensive and scarce.”

After $175M Verdict, Questions About Guardrail Safety, Federal Oversight - ABC News

Monday a Texas jury found that Trinity Industries had defrauded the U.S. government by making modifications to the guardrail in 2005 but not disclosing those changes until questions were raised in 2012. Critics say the modifications made the guardrails more dangerous to motorists and are linked to severed limbs and deaths on the road.

Trinity was ordered to pay $175 million in damages -- a figure that’s expected to be tripled by statutory mandate -- but says it will appeal the decision.

U.S. Fed awards record amount of term deposits
| Reuters

The U.S. central bank allotted $171.86 billion of them to 66 banks which will receive an interest rate of 0.26 percent.

This compared with the $110.03 billion in deposits awarded a week earlier to 67 banks which received an interest rate of 0.26 percent.

The Fed has ramped up testing of its term deposit facility after the 2008 financial crisis to help policymakers drain cash from the banking system when they decide to tighten monetary policy.

On Sept. 4, the Fed said it plans to conduct a series of eight seven-day TDF operations starting in October. These tests will have an early withdrawal feature in which banks can enter into the TDF and pull the money out before the maturity date.

So, with a 2.8% unemployment rate, wages in North Dakota must be sky rocketing, right?

We're #1! We're #1!

Go Georgia!

Cleveland Fed Inflation Nowcast

Nowcast quarter   CPI Core CPI   PCE     Core PCE   Updated
2014:Q4             0.46     1.57   0.78       1.42     10/21/2014

Outsider wrote:

the MyRA program

Rebranding of the payroll savings bond program.

gab wrote:

That's hawkish, not dovish.

The doves believe we should raise interest rate in about a year. The hawks believe we should have raised interest rates a year ago and we need to raise them sharply to catch up with the natural interest rate.

Rosengreen is a dove.

Doves strike back:
Rosengren says Fed should end bond-purchasing program - Market Business News

President of the Federal Reserve Bank of Boston, Eric Rosengren, has said that the Fed should not let the recent financial market turmoil affect the upcoming policy meeting at the end of October.

In an interview on October 17, Rosengren said:

“Volatility by itself isn’t a bad thing, it’s just reflecting there’s a lot of uncertainty in the market,”

“Just because we’re seeing volatility in the last two weeks isn’t enough to have me fundamentally change my forecasts.”

Rosengren has expressed his belief that the Federal Open Market Committee should stop its bond purchasing program, as planned, at the end of the month. This would end the Fed’s policy of quantitative easing.
“We could stay at the zero lower bound for longer. We could decide to raise rates at a more gradual pace. It’s not clear to me that continuing QE would necessarily be the best way to address concern,”

Outsider wrote:

You pay $12,500 for shares in XYZ.

$12500 goes to the buyer plus you're out the commission on those shares. In a sense, you lost the $4,000 when you overpaid for the shares. But if the stock price goes up before you sell, then you never lost that $4,000.

The only prices that matter are the price you buy and the price you sell. Everything in between is for entertainment value only.

Outsider wrote:

Does it just vanish, or does someone on some other end get it?

It never really existed, merely an illusion that people stopped believing in.

Apple should buy Sony, especially if they can combine Sony Pictures with Pixar/Disney.

There's a certain smell of desperation in the air at Frankfurt.
Exclusive: ECB looking at corporate bond buys, could act as soon as December - sources
| Reuters

The European Central Bank is considering buying corporate bonds on the secondary market and may decide on the matter as soon as December with a view to begin purchases early next year, several sources familiar with the situation told Reuters.

European shares rallied on the news, led by banks and shares in peripheral countries. The euro fell more than half a cent against the dollar and credit indices tightened sharply.

Policymakers are desperate to revive the euro zone economy, which is barely growing and dogged by low inflation of 0.3 percent, far below the ECB's target of just below 2 percent.

The ECB has already carried out work on corporate bond buying, which would widen out the private-sector asset-buying program it began on Monday. It is hoping these measures will foster lending to businesses and thereby support the euro zone economy.

"The pressure in this direction is high," said one person familiar with the work inside the ECB, speaking on condition of anonymity.

The Australian news

CHIEF Executive Leung Chun-ying says if the government met student demands and allowed candidates to be nominated by the public, Hong Kong’s poor and working class could dominate the elections.

Speaking in an interview with foreign media, Mr Leung reiter­ated that the student demand for ­direct input from the public on candidates for the city’s top post was impossible. He said using a nominating committee as required by Beijing gives representation to a wide range of groups.

He warned that if candidates were nominated by the public, the population that earns less than the median monthly salary of $US1800 ($2057) could dominate the process. “If it’s entirely a numbers game and numeric representation, then obviously you’d be talking to the half of the people in Hong Kong who earn less than $US1800 a month,” Mr Leung said.

The leader of Hong Kong worries the 47% could end up running the city.

Belmont wrote:

we could never recover

I am not a doomer.
I'm just waiting for the second half recovery.

Second half of the decade.

BarleyReturns wrote:

Existing means used right?

Not necessarily used but depreciated.

Any easing of mortgage credit will only produce a one-off blip in home sales smaller but slight more long lasting than the first time home buyers tax credit.

Her condition has not changed but our understanding of her condition has improved, which is why we are downgrading her condition.

Kenny Rogers & The First Edition - Just Dropped In - YouTube

Take my wife, please.
IBM Paying Globalfoundries $1.5 Billion to Take Unit in Retreat From Chips - Bloomberg

After months of on-again, off-again talks, IBM Chief Executive Officer Ginni Rometty finally struck a deal to jettison the chipmaking unit, which has been a drag on earnings. Globalfoundries, owned by an investment arm of the government of Abu Dhabi, is taking on the unit to tap the expertise of its engineers in the fundamentals of semiconductor design and manufacturing.

In a 10-year partnership, Globalfoundries will supply IBM with Power processors in exchange for access to IBM’s intellectual property, the people said. That would allow Globalfoundries to access key chipmaking technology and guarantee supply of chips that IBM needs for its systems, like mainframe computers and its Watson data-analytics technology.

IBM will pay Globalfoundries the $1.5 billion over three years, the people said.

lawyerliz wrote:

A pet rock would be as useful.

But is it digital and connected?

emergency hotdog wrote:

really really really wanted to buy the stock.

You think there's a lot of profit potential in giving away free medicines?

emergency hotdog wrote:

treated for free

Has to be free because you can't get FDA approval for the treatment (You'd have to do safety and effectiveness studies for each virus that you printed.)

How else is the NSA going to track your pulse rate?

Outsider wrote:

We could make him czar.

Hillary could appoint him as czar czar.

Citizen AllenM wrote:

a giant high speed rail connection

Couldn't compete on a cost basis with shipping through the northeast passage. Wouldn't be as fast as air freight for high value goods.

White elephant.

Is Sweden a major country?
Sweden says credible reports of foreign submarine in its waters
| Reuters

The Swedish military has said the initial information about suspicious underwater activity came from a trustworthy source, without providing details, and that more than 200 military personnel were involved in the search.

The Swedish daily Svenska Dagbladet, citing unidentified sources with knowledge of the hunt, said it began after a radio transmission in Russian on an emergency frequency.

Further encrypted radio traffic from a point in the archipelago and the enclave of Kaliningrad, home to the Russian Baltic fleet's headquarters, was intercepted on Friday evening after the Swedish search started, the newspaper said.

Grenstad said the armed forces had not received any information about a distress signal.

I'm sure Tim Cook is trembling.
Microsoft plans to launch smartwatch within weeks: Forbes
| Reuters

Microsoft Corp. (MSFT.O) is preparing to launch a smartwatch within the next few weeks that will passively track a user's heart rate and work across different mobile platforms, Forbes reported on Sunday.

The wearable gadget's battery life will exceed two days of regular use, Forbes reported, citing unnamed sources close to the project. It will arrive in stores soon after being unveiled in an effort to capture the holiday season, Forbes reported.

You know, the strait of Hormuz looks a lot less strategic when oil is a at $75 a barrel than it did when oil was $120/barrel.

vtcodger wrote:

crush Russia.

Putin's already on the job. Foreign policy is 'pivoting' to Asia. Instead of doing nothing in Europe, the U.S. is going to do nothing in Asia.

Official ruling: Is Canada a country that matters?

Belmont wrote:

Show me a hot war between the US and Russia?

How about the German Empire European Union and Russia?

Why does everyone want to drag the U.S. into the conflict in Ukraine?

vtcodger wrote:

"Tell me no secrets, tell me some lies"

For a fee, the rating agency will tell you which lies would give you a AAA rating.

josap wrote:

Not supposed to say it out loud.

I suspect that the downgrade is based on a Brent price of $95. They'll change their assumptions once it becomes clear that the price of oil will remain low for a couple of months.

Moody's downgrades Russia's rating | Business News | Business and Finance News | | Herald Sun

Ratings agency Moody's has downgraded Russia's credit rating to Baa2 from Baa1 citing poor growth prospects, the Ukraine crisis and sanctions as well as capital flight.

"The first driver for the downgrade ... relates to the longer term damage the already weak Russian economy is likely to incur as a result of the ongoing crisis in Ukraine and, relatedly, the additional sanctions imposed against Russia," the agency said in a statement.

It added that it was maintaining Russia's outlook at "negative".

"Even prior to the crisis in Ukraine, the potential growth rate of the Russian economy was falling, constrained, according to the IMF, by economic rigidities such as infrastructure bottlenecks and shortfalls in labour skills and education," it said.

"The tightening of sanctions against Russia has already begun to aggravate the slowdown in economic growth and to undermine consumer and investor confidence in the country.

"Domestic demand slumped in the second quarter, including a notable decline in inventories and investment," Moody's said, adding that it expected the trend to continue as long as the Ukraine unrest and ensuing sanctions persisted.

Mary wrote:

WHAT resources?

I suggest a bunch of has-been rap performers do a charity concert to raise awareness of the need to lobby for public education of the necessity of additional funding for public health efforts in West Africa and other locations as needed.

josap wrote:

allows newborns to be anonymously left

Just newborns? They don't take seventeen year-olds?

Safe-haven law - Wikipedia, the free encyclopedia

Controversy has arisen out the safe-haven law enacted in Nebraska in July 2008. The Nebraska law has been interpreted to define a child as anyone under 18,[6] and has resulted in the desertion of teenage children.[7] Under this law, at least 35 children were dropped off in Nebraska hospitals in a four month span, at least 5 of them from other US states.[8] The law was changed in November 2008, allowing only infants up to 30 days old to be surrendered.

It would be a stronger argument that the drop in oil prices is due to rising supplies if the price of iron ore, copper, coal and other industrial commodities had not already dropped sharply.

mr_clueless wrote:

either way, no threat to the at-rest position of cr's eyebrows.

so did you sell your ivv yet?

sm_landlord wrote:

if the Saudi oil price games can be seen as just another tactic in the currency wars.

Maybe oil is a currency as well?