Economy
Related: About this forumSTOCK MARKET WATCH -- Monday, 10 December 2012
[font size=3]STOCK MARKET WATCH, Monday, 10 December 2012[font color=black][/font]
SMW for 7 December 2012
AT THE CLOSING BELL ON 7 December 2012
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Dow Jones 13,155.13 +81.09 (0.62%)
S&P 500 1,418.07 +4.13 (0.29%)
[font color=red]Nasdaq 2,978.04 -11.23 (-0.38%)
[font color=red]10 Year 1.62% +0.01 (0.62%)
[font color=black]30 Year 2.80% 0.00 (0.00%) [font color=black]
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[font size=2]Market Conditions During Trading Hours[/font]
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[font size=2]Euro, Yen, Loonie, Silver and Gold[center]
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[font color=black][font size=2]Handy Links - Market Data and News:[/font][/font]
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Economic Calendar
Marketwatch Data
Bloomberg Economic News
Yahoo Finance
Google Finance
Bank Tracker
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Daily Job Cuts
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[font color=black][font size=2]Handy Links - Economic Blogs:[/font][/font]
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The Big Picture
Financial Sense
Calculated Risk
Naked Capitalism
Credit Writedowns
Brad DeLong
Bonddad
Atrios
goldmansachs666
The Stand-Up Economist
The Automatic Earth
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[font color=black][font size=2]Handy Links - Government Issues:[/font][/font]
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LegitGov
Open Government
Earmark Database
USA spending.gov
[/center][font color=black][font size=2]Handy Links - Videos:[/font][/font]
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Charlie Rose talks with Roubini
Charlie Rose talks with Krugman
William Black: This Economic Disaster
Bill Moyers with Kevin Drum and David Corn
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[font color=red]Partial List of Financial Sector Officials Convicted since 1/20/09 [/font][font color=red]
2/2/12 David Higgs and Salmaan Siddiqui, Credit Suisse, plead guilty to conspiracy involving valuation of MBS
3/6/12 Allen Stanford, former Caribbean billionaire and general schmuck, convicted on 13 of 14 counts in $2.2B Ponzi scheme, faces 20+ years in prison
6/4/12 Matthew Kluger, lawyer, sentenced to 12 years in prison, along with co-conspirator stock trader Garrett Bauer (9 years) and co-conspirator Kenneth Robinson (not yet sentenced) for 17 year insider trading scheme.
6/14/12 Allen Stanford sentenced to 110 years without parole.
6/15/12 Rajat Gupta, former Goldman Sachs director, found guilty of insider trading. Could face a decade in prison when sentenced later this year.
6/22/12 Timothy S. Durham, 49, former CEO of Fair Financial Company, convicted of one count conspiracy to commit wire and securities fraud, 10 counts of wire fraud, and one count of securities fraud.
6/22/12 James F. Cochran, 56, former chairman of the board of Fair, convicted of one count of conspiracy to commit wire and securities fraud, one count of securities fraud, and six counts of wire fraud.
6/22/12 Rick D. Snow, 48, former CFO of Fair, convicted of one count of conspiracy to commit wire and securities fraud, one count of securities fraud, and three counts of wire fraud.
7/13/12 Russell Wassendorf Sr., CEO of collapsed brokerage firm Peregrine Financial Group Inc. arrested and charged with lying to regulators after admitting to authorities he embezzled "millions of dollars" and forged bank statements for "nearly twenty years."
8/22/12 Doug Whitman, Whitman Capital LLC hedge fund founder, convicted of insider trading following a trial in which he spent more than two days on the stand telling jurors he was innocent
10/26/12 UPDATE: Former Goldman Sachs director Rajat Gupta sentenced to two years in federal prison. He will, of course, appeal. . .
11/20/12 Hedge fund manager Matthew Martoma charged with insider trading at SAC Capital Advisors, and prosecutors are looking at Martoma's boss, Steven Cohen, for possible involvement.
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[font size=3][font color=red]This thread contains opinions and observations. Individuals may post their experiences, inferences and opinions on this thread. However, it should not be construed as advice. It is unethical (and probably illegal) for financial recommendations to be given here.[/font][/font][/font color=red][font color=black]
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Roland99
(53,342 posts)Demeter
(85,373 posts)Every time it appears that the OCC foreclosure reviews have hit bottom they sink further into the morass. Our latest example comes from a petition GMAC/ResCap filed as part of their bankruptcy. This example shows how banks are spending simply staggering, implausible amounts of money on foreclosure “reviews”, and how keen they are to enrich anyone other than wronged borrowers. Given that some of these foreclosure reviewers are also in the business of “scrubbing” loan files and creating (as in fabricating) allonges, you have to wonder whether the amount of money being spent is not on review but also “remediation” and is being bundled in with the review costs. Think of the twofer: you get to call your chicanery something else, and blame the cost on the banks’ favorite scapegoat, those big meanie regulators.
This information comes from a petition GMAC/ResCap filed as part of their bankruptcy and exposes the multiple and pricey roles being played by PriceWaterhouseCoopers (hat tip friend, colleague, and foreclosure defense super lawyer Matt Weidner).
As has already been noted in a multi-part investigative series by Jeff Horwitz and Kate Berry of American Banker these reviews are expensive; so expensive they are projected to pay $4 to reviewers for every $1 paid to homeowners. GMAC alone projects they may spend $250 million on reviews by PriceWaterhouseCoopers (PWC). In the 90 days beginning January 12, 2012, GMAC spent $51,658,206. They do not disclose the number of loan reviews this covered though, in a different petition, they clarify they used sampling to review 5,000 loans and 12,000 “borrower outreach complaint samples.” Giving them the benefit of the doubt, that every loan was reviewed during the 90-days, that comes to an obscene $10,331.64/loan. In contrast, Fannie and Freddie pay $1,250 in legal fees for an entire judicial foreclosure, beginning to end.
Several fee schedules are included, with varying roles and amounts, though it’s clear that everybody is well paid. Associates bill $235/hr., Senior Associates bill $300/hr., Managers bill $370/hr., Senior Managers bill $470/hr., Managing Directors are paid $610/hr., and Partners bill at $630/hr. To compare and contrast salary.com reports the 90th percentile pay for Family Practice Physician’s is $225,931, which comes to $868.97/day. So it’s less expensive to have a doctor spend a whole day figuring out what ails a person than it is to have a PwC partner spend 90 minutes reviewing what’s wrong with foreclosure files. At the rates PwC charges a Senior Associate, Manager, and Partner each have to spend eight hours on a file, which comes to about 21 hours more than the top foreclosure defense lawyers tell me they spend on initial file intake. Foreclosure defense lawyers initial 2-3 hour review yields an approximate 95% serious error rate, though it probably helps to be a local, licensed lawyer when reviewing files for legal fraud. The number of hours being billed is so absurd relative to any possible actual work involved that it’s obvious PwC is not being paid for its expertise, but to give a clean/largely clean bill of health, and the banks will pay whatever it takes to get that. This raises the question of who trained PwC and the answer is interesting: GMAC, the firm being audited for fraud. “During their engagement, PwC professionals have developed institutional knowledge regarding GMAC's operations and systems.” Great.
Read more at http://www.nakedcapitalism.com/2012/11/michael-olenick-schadenfreude-alert-banks-paying-extortionate-fees-for-foreclosure-reviews.html#QMdCVMilsJTqPXSF.99
AND THERE'S A LOT, LOT MORE, INCLUDING THE COMMENTS
Demeter
(85,373 posts)JPMorgan Chase filed quite a remarkable quarterly report with the Securities and Exchange Commission on Thursday, crammed with far more details about its exposure to litigation and mortgage repurchase demands than the earnings report the bank issued in mid-October. Among the revelations: JPMorgan has reached an agreement in principle to settle two SEC investigations, one involving a single unidentified JPMorgan securitization, the other involving Bear Stearns's crafty (alleged) trick of keeping put-back recoveries from mortgage originators for itself instead of passing them on to investors in mortgage-backed securities trusts. The SEC deal has been long rumored, and though we still don't know any of its terms, the bank's filing confirms it.
JPMorgan also disclosed that it is now facing put-back claims, in one form or another, on $140 billion in mortgage-backed notes. Yes, you read that right: $140 billion. That doesn't mean there are $140 billion in claims, but it means that holders of $140 billion in MBS notes have asserted, in litigation or through contractual demands, that the bank must buy back deficient mortgages in their trusts. Given that MBS investors generally claim breach rates in excess of 50 percent, JPMorgan's exposure to mortgage put-backs is tens of billions of dollars.
The bank, of course, thinks the put-back demands are meritless and its entire litigation exposure is a trifling matter. The SEC filing's 10-page discussion of the various litigation headaches facing JPMorgan -- which include really serious matters, such as the securities class action over its CIO losses, various Libor suits and the Federal Energy Commission's market manipulation case -- begins with the brash assertion that the bank's "reasonable possible losses" in all of this litigation (aside from its litigation reserves) range from zero dollars to $6 billion.
Zero dollars? I think not. In fact, I'm prepared to say that based on two rulings this week by U.S. District Judge Denise Cote of Manhattan in the Federal Housing Finance Agency's securities fraud litigation against MBS issuers and underwriters, JPMorgan has exceedingly low odds of getting out of the Fannie Mae and Freddie Mac conservator's case -- which involves claims on $33 billion in JPMorgan, Bear and Washington Mutual MBS -- without a settlement...the banks, which are now facing a trial date in June 2014. JPMorgan's zero-dollar prediction aside, I bet we'll see some FHFA settlements before then.
MORE
Demeter
(85,373 posts)Like Fannie Mae and Freddie Mac before it, the Federal Housing Administration is suffering in a mortgage hell of its own making. F.H.A. officials say they won’t need taxpayers’ help, but we’ve heard that kind of line before.
The F.H.A. backs $1.1 trillion of American mortgages and, by the look of things, it’s in deep trouble. Last year, its mortgage insurance fund was valued at $1.2 billion. Today that fund is valued at negative $13.48 billion.
Granted, that figure, reported by F.H.A.’s auditor, doesn’t represent actual losses. It’s an estimate of the difference between future mortgage insurance premiums that the F.H.A. will collect and the expected losses on the mortgages that the agency is obligated to cover over time, combined with the agency’s existing capital resources.
But the upshot is this: If the F.H.A. were to stop insuring new home loans today, it wouldn’t have the money it needs to cover its expected losses in the coming years...
AND THERE'S MUCH, MUCH MORE (BUT YOU KNEW THAT)
Demeter
(85,373 posts)Debtoptions is a movement started in late 2012. It was founded on the principle that since 2008, we, real ordinary people, have watched our country come to its knees due to a gamble of the banks. The sell out of OUR resources by our politicians and the lies and ommitions about our place in the world crises. The sense of hopelessness has brought hundreds to a very dark place and with no hope in sight many have taken their lives!
Claire Cullinane decided that enough was enough, and started Debtoptions. The process is simple. Ordinary people who find themselves with massive amounts of unpayable debt, who the banks put enormous amounts of pressure on despite being directly responsible for the people’s inability to pay in the first place, individually sue the banks for €1,000,000 each.
People For Economic Justice of course thought the idea was fantastic. It is exactly what we fight for every day: people standing up for their rights, not allowing themselves to be bullied by the banks, and taking back control of their lives.
Ben Gilroy will be on hand in every single trial. Thus far over 200 people have filed a lawsuit against their mortgage lender. As soon as the lawsuit is in place, you can cease repayments until such time as the matter has been resolved in the courts. All documentation is available from Debtoptions, and they will be with you every step of the way.
Every single person who has thus far taken the decision to sue their lender has reported a huge upsurge in their personal mood, and their sense of personal empowerment. We have hubs all across the country where everyone taking a lawsuit meet up to discuss the current state of their lawsuit.
Join Debtoptions today. Call 0872565728, check out the Debtoptions Facebook page, or fill out the contact form here on site.
Demeter
(85,373 posts)YVES SMITH NOTES:
Roughly eight years ago, I had lunch with an ex-McKinsey colleague who had started a venture capital firm. His partners were raising a second fund. He was leaving. I wish I had taken notes, but his message was that the industry did not work. He went through the deals done in the previous decade (remember, this was 2004), the returns were concentrated in a small handful of firms. And if you looked at those firms, their returns came from a remarkably small number of deals. I’m pretty sure I’m not exaggerating that his analysis said that if you took the top ten deals out, the industry returns would be subpar. And once you got further in the decade, the returns of these deals would roll off and would no longer be included in the pension fund consultants’ analyses, and thus would lead the industry to be deemed (correctly) to be less attractive and would have less in the way of funds allocated to it. This is critical because if you are in the fund management business, the saying goes that 75% of the work is raising the money.
Confirming the soon-to-be-ex VC’s grim forecast, earlier this year, the Kauffman Foundation, a major investor in venture capital funds, released an extremely critical analysis of both industry performance and the willingness of VC limited partners to accept lousy deal terms and limited (as in unreasonably limited) due diligence on the funds.
Despite the enthusiasm of bright young things to get on venture capitalists’ radar, I’ve also seen inventors do everything they can to steer clear of venture capitalists, at least any time before the late stages of their venture (where a round of funding from the right names is enormously helpful in getting a big Wall Street firm to handle your IPO). The view among quite a few more seasoned inventors (and their attorneys) is that VC is too costly in monetary terms and comes with too many strings attached, both in terms of interference and in that they usually over time displace the founding team for not having the right resumes and “look” an IPO. While it is often true that the founders may not have the skills to build a larger organization, I’ve often seen them bring in “talent” which has the right resume but managerially is not all that much better.
Nevertheless, venture capital is romanticized as one of the drivers of the American economy, when entrepreneurship expert Amar Bhide has ascertained that only about 1% of new ventures are funded by VC. A story today the Mercury News (hat tip bob) on how the poor performance of VC this year is part of a longer decline, raises bigger issues about the trajectory of the economy and the role of venture funders in it. It may simply be that (contrary to the McKinsey VC’s forecasts) funding levels have not fallen in line with the industry’s performance, and it needs to shrink further so that there aren’t too many investors chasing too few of the hot deals. It may also be that the VC industry is a casualty of the global financial crisis, in that individual investors remain skittish about the market, and their reservations are reinforced by high frequency trading, which leaves the little guy at a disadvantage. But predictably, even though the article makes it clear that the problems with VC are long-standing, many of the fund operators want to blame it on “uncertainty,” which at least on this coast, means the government...
Read more at http://www.nakedcapitalism.com/2012/11/on-the-decline-and-maybe-fall-of-venture-capital.html#1XKviqGcf0JeGlAZ.99
SEE ALSO: http://www.scribd.com/doc/112929349/Kauffman-VC-Enemy-is-Us-Report
Tansy_Gold
(17,860 posts)Demeter
(85,373 posts)Demeter
(85,373 posts)BAD LIQUOR INGESTED?
http://www.alternet.org/personal-health/why-we-may-see-kinder-gentler-and-cheaper-medical-care-system?akid=9782.227380.Gt6a-b&rd=1&src=newsletter757719&t=20&paging=off
The Freelancers Union, a fast-growing national entity serving the one in three adult Americans who now work freelance, has added an innovative twist to the reasonably-priced health insurance it already offers to members who are located in the New York City area. If this works, look to see it tried around the country. Through its current health insurance packages the union already covers visits to primary care doctors and specialists with additional “co-pays.” Now, the union is opening its own medical office, which will offer members free visits to a primary care doctor, with no copays or other restrictions.
Obviously, for this to work, the union and its insurer must save enough money elsewhere to make up the cost of the co-pays. According to the Freelancers Union and their insurance company, which is affiliated with Blue Cross/Blue Shield, that’s exactly what they expect to happen: “It’s rare for doing good to align with financial benefits,” said Dr. Neil Patel, who runs the new medical practice, called Freelancers Medical.
Basically, the idea is that a more flexible, more humane, and more responsive medical practice is actually a money-saver. If primary care physicians are more attentive to the needs of patients, and more emphasis is placed on prevention, the thinking goes, insurers’ outlays to expensive specialists will drop. This idea is reminiscent of what large Health Maintenance Organizations once promised—before cost-cutting took its toll. But there’s one huge difference. Unlike the HMOs, the Freelancers Union health plan does not require that primary care doctors serve as gatekeepers. Plan members can see specialists without a primary care doctor’s approval or referral.
***
The first Freelancers Medical office opened recently in downtown Brooklyn, and I went over the other day during an Open House and joined in a group discussion with the principal caregiver and others involved. The operation still feels a little rough around the edges as if they were figuring out things as they go. But for members of Freelancers Union who enroll in Freelancers Medical during an open enrollment period (one just closed, but there will be more), here are the basics:
There is no limit to the number of free visits in a year. In fact, members are invited to hang out in the homey waiting room, as they might at a cozy coffee house, with free iPads and WiFi provided.
The pleasant and cheerful “consultation rooms” are a vast improvement over the standard creepy examining rooms.
Services incIude gynecological and pediatric care.
For now, the hours are typical of most doctors’ offices— Monday, Tuesday, Wednesday and Friday, 9-5, Thursdays 1-8. In the future Saturday hours may be added and evening hours expanded. (Of course, true freelancers may find traditional working hours just fine.) Freelancers Medical is already talking about a possible second location on Manhattan’s Upper West Side.
There’s no charge for drawing blood for tests, though you do pay the routine fees for outside lab work.
Dr. Patel expects that patients will be able to make same-day or next-day appointments. Right now, he’s the only doctor, but he estimates that the practice could handle 5,000 patients with a second physician and the current nurse-practitioner who carries some of the load.
https://freelancersmedical.org/
ALL I CAN SEE IS LIABILITY INSURANCE SHUTTING THIS DOWN....
Tansy_Gold
(17,860 posts)(is there an echo in here?)
Demeter
(85,373 posts)HOW DO YOU "REPAIR" A BURNING HOUSE?
http://www.alternet.org/only-populist-anti-corruption-movement-can-repair-american-democracy-says-larry-lessig?akid=9782.227380.Gt6a-b&rd=1&src=newsletter757719&t=10&paging=off
(Editor’s note: What follows is a Q&A with Larry Lessig, a Harvard Law School professor who is one of the country’s leading public intellectuals on what needs to happen to repair American democracy for the 21st century. Lessig believes that the impact of private money in politics has created a culture of legal political corruption that is destroying American democracy. He has called for a convening constitutional convention to adopt reforms that he believes Congress would not propose on its own unless tremendous grassroots pressure emerges. AlterNet interviewed Lessig at the 28th Amendment conference in Los Angeles in November.)
Steven Rosenfeld: We've been at the 28th Amendment conference all day where we’ve heard about all kinds of ideas for reforming our democracy starting with the campaign finance system, going towards constitutional amendments, constitutional conventions, things that could happen with the regulatory agencies in Washington, D.C. Professor Lessig, what progress do you see when you hear with everybody talking now? Stepping back, how do you think this movement is changing or where is it in its development?
Larry Lessig: We’re at the very beginning. And at the beginning people are fumbling to understand both where they should be standing and in which direction they should be walking. I think the movement should celebrate enormous success so far in inspiring a movement around Citizens United that has produced millions of people who think of this as a fundamental problem that has to be addressed. This corruption and the movement to get states to pass resolutions calling on Congress to propose a constitutional amendment I think is a fantastic, important measure of its success. I think that we’ve got to now think what’s the next step, what’s the next move we can make that makes it easier for us to achieve cross-partisan support but also create the pressure on Congress that will be necessary for it to actually be forced to do something.
SR: That was my next question because you did talk about a cross-partisan approach. What do you mean by that—so people understand that this just can’t be an idea adopted by 10 percent or 15 percent of any part of the political spectrum.
LL: Yes, by cross partisan I mean a movement that cuts across partisan lines. I don’t imagine a movement that is going to get the lamb and the lion to sit down together, and you pick which is the lamb and which is the lion, but I think it has to be a movement that says, ‘Look, we need to be able to put aside our difference long enough to focus on this common problem we have.’ Then once we fix this common problem, we can get back to the fights that we have about what the tax rates should be or how much support there should be for business and so forth. The cross-partisanship is essential because this change is fundamental, and no change happens in our system that’s fundamental without cross-partisan support. We just don’t have the capacity to do it. It’s not a parliamentary democracy where 50 percent plus one gives you unlimited power to change the government. You need three-fourths of the states to back up any constitutional amendment. We have to speak about this in a way—we have to be disciplined to speak about this in a way that the other side can hear.
SR: I want to ask you about what we should be doing to be disciplined, but first how do you come to the conclusion that we should not necessarily look at a specific amendment right now but rather call for a Constitutional Convention. What is the benefit of that approach?
LL: I think the chance of the United States Senate passing by 67 votes any amendment is zero, precisely zero. I think the energy to get Congress to propose an amendment is wasted energy. Instead, what we should be doing is devoting that energy towards the idea of getting state legislatures to call for a Constitutional Convention, actually to be precise, an Article V convention, and the more that happens, every single vote in the state legislature to do that, the more pressure is put on Congress.
At a certain point, the fact that we’re at 31 or 32 or 33 of these states would mean the Congress has to recognize that it’s just a matter of time now before there are enough states to force it to actually call a convention or it needs to implement the sort of changes that stop that movement. This is what happened with the 17th Amendment, which made it so the Senate was actually elected as opposed to appointed by state legislatures. I think we need to see the same thing in this context so that we give them a reason to respond to us as opposed to politely asking them to fix the problem they’ve caused...
BACK IN THE REAGAN DAYS, IT WAS THE NUT-O-SPHERE THAT WANTED A CONSTITUTIONAL CONVENTION, SO THEY COULD FORM A "CHRISTIAN" THEOCRACY....
BUT IF THE TIDE HAS TURNED SUFFICIENTLY (WHICH IT HASN'T) A NEW CONSTITUTION COULD PLUG THE GAPING HOLES IN AN 18TH CENTURY DOCUMENT THAT COULDN'T PREDICT MODERN POLITICAL PRACTICE OR TECHNOLOGY.
THAT 18TH CENTURY DOCUMENT COULDN'T EVEN HANDLE 18TH CENTURY PROBLEMS.
BUT IF THERE WERE A CONSTITUTIONAL CONVENTION NOW....WHAT FORCE ON EARTH WOULD KEEP THE CORPORATIONS OUT?
Demeter
(85,373 posts)1. The Republicans' "Job Creators" Don't Create Jobs
2. Raising Upper-Income Tax Rates Won't Hurt the Economy
3. Low Capital Gains Tax Rates Drive Income Inequality, Not Investment
4. Income Inequality is at an 80 Year High...
5. ...While the Total Federal Tax Burden is at a 60 Year Low
6. Tax Cuts Don't Pay for Themselves
7. Closing Tax Loopholes Can't Pay for Lower Rates and Just Hit the Rich
8. The Estate Tax Has Virtually No Impact on Family Farms and Businesses
9. The National Debt? Republicans Built That
10. There Really Isn't a Fiscal Cliff
MASSIVE AMOUNTS OF DETAIL AT LINK
Demeter
(85,373 posts)After a couple of years of Hantz Farms’ President Mike Score proposing a meeting between myself and John Hantz and discussion on the terms of such a meeting, early this year, I agreed to meet with Mr. Hantz, if Kathryn Underwood were present. Kathryn is the City Council’s representative on the Detroit Food Policy Council and a planner with the City Planning Commission. She has led the urban ag workgroup that developed the proposed ordinance on urban agriculture in Detroit.
Kathryn and I met with John Hantz and Mike Score at the Russell Street Deli one morning in late February. I wanted the chance to look Hantz in the eyes, ask him questions directly and not only hear, but feel his responses. One of the things I asked him about was his statement that he is trying to create scarcity by purchasing city-owned land. He affirmed his previous statement that he is trying to create scarcity by “removing the abundance” of unused land. But then, to my surprise, he shared that the idea for Hantz Farms came about only after he proposed — to three city administrations — that he fund a homesteading office that would facilitate Detroit residents quickly and easily acquiring ownership of vacant city properties. I told him that his original proposal that would put land in the hands of Detroiters is something I could get behind. He expressed that he still would be willing to pursue that strategy.
A few weeks later, in a discussion with Eric Holt-Gimenez, director of Food First, I shared a summary of the meeting with Hantz. Eric suggested that perhaps there was some common ground for a strategic alliance with Hantz and that there are historical examples of cooperation between opposing forces. While continuing to be involved in efforts to mount opposition to the ill-conceived Hantz deal, I suggested to a group of activists that we draft a letter to John Hantz encouraging him to withdraw his current proposal and meet with us to develop a more equitable strategy. The group agreed. In late July, I mailed the letter to Mr. Hantz on behalf of the Detroit Black Community Food Security Network, Feedom Freedom Growers, Greening of Detroit, The Boggs Center, People’s Kitchen, Andrew Newton and Stephen Boyle.
The letter read in part:
Certainly one thing that we all wish to see is that Detroit’s ‘vacant’ lands develop greater value and be put to productive use. The details of how this land use happens are where our differences start. From our perspective, having a large amount of land in the hands of any one person or corporation continues the centuries old legacy of inequity. We want to see the publicly owned land in the city of Detroit utilized for the common good. Land ownership provides the opportunity for wealth creation, community development and pride.
“You have shared that your real objective in purchasing large tracts of land in Detroit is to create scarcity, and that the idea for Hantz Farms evolved only after your original idea of funding a homesteading office that would facilitate Detroit residents being able to acquire land did not gain traction with city officials. We think that this provides the opportunity for us to find common ground. We are asking that you drop your current proposal to purchase 1,900 city-owned lots to plant hardwood trees, and that we work together to develop an alternative proposal that allows Detroit residents to acquire ownership of land.
“The eyes of the nation are on Detroit. We have the opportunity to help create a new paradigm that models cooperation between seemingly opposing forces. Rather than put our time and energies into a battle to discredit each other’s viewpoints, we could work together to create land use and ownership policies and practices that work in the best interest of us all.
“We would very much like to meet with you to discuss how we might cooperate for the common good.”
Mike Score responded to the letter on Aug. 9. Excerpts from his letter appear below.
“At this point you have approached us with the interests in collaborating to create land-use and ownership policies/practices that work in the best interest of all. We have no interest in receding back into the negative relationships of the past, but we are not simply able to scrap the collaborative network that we have built for the purpose of pursuing a citywide homesteading initiative. Also our proposal for establishing Hantz Woodlands is based on agreements we’ve reached with dozens of block clubs and neighborhood associations on the city’s lower east side. Local residents have pinned their hopes on our venture for repurposing a large area of city-owned blighted land. We are not able to set our agreements with our neighbors aside.”
In spite of Mike Score’s comments to the contrary, there is still an opportunity for Mr. Hantz to drop his ill-conceived project and to change the course of history by cooperating with community activists to co-create a more just, equitable and vibrant Detroit. Of course, we’re not waiting on Hantz to see things our way. We are continuing to actively mobilize community opposition...The City Council agreed to postpone voting on the proposed Hantz deal until Dec. 11 in order to allow time for a public hearing to be held. At this writing, details of such a public hearing have not been released. Needless to say, when the hearing happens, it is critical that Detroiters, particularly those living in the footprint of the proposed Hantz deal, show up en masse to voice their opposition to this land grab...
Demeter
(85,373 posts)This month’s jobs report shows an economy that’s still moving in the right direction but way too slowly, which is why Washington’s continuing obsession with the federal budget deficit is insane. Jobs and growth must come first. The cost of borrowing is so low — the yield on the ten-year Treasury is near historic lows — and the need for more jobs and better wages so high, and our infrastructure so neglected, that a reasonable government would borrow more to put more Americans to work rebuilding the nation. Yes, unemployment is down slightly and 146,000 new jobs were created in November. That’s some progress.
But don’t be overwhelmed by the hype coming out of Wall Street and the White House, both of which would like the public to believe things are going quite well. The fact is some 350,000 more people stopped looking for jobs in November, and the percent of the working-age population currently employed continues to drop — now at 63.6%, almost the lowest in 30 years. Meanwhile, the average workweek is stuck at 34.4 hours.
The slowness of the jobs recovery isn’t because of Hurricane Sandy, which it turns out had very little impact on November’s job numbers (the hurricane’s negative effects were more than offset by a Thanksgiving earlier than normal, and an early start to the Christmas buying season). And it’s not because of any uncertainty over the looming “fiscal cliff.” Most consumers in November remained oblivious about any pending cliff. The reason the economy is still under-performing is overall demand is inadequate. Businesses won’t create more jobs without enough customers. But consumers can’t and won’t spend because they don’t have the money. Unless or until the private sector — businesses and consumers — are able to boost the economy, government must be the spender of last resort.
But the nation has bought into the Republican frame of thinking that we have to “get our fiscal house in order” before the economy can get back on track. Although Barack Obama was reelected and Democrats gained seats in the House and Senate, that frame is still dominating debate. And even though we’re near a fiscal cliff that illustrates how dangerous deficit reduction can be when so many people are still unemployed, the White House and the Democrats seem incapable of changing the frame of debate.
But remember: Jobs must come first. Job creation must be our first priority.
Demeter
(85,373 posts)Aries (3/21-4/19)
You're going to be dealing with some fragile egos today, which could end up being quite tiresome for you. But in the end, taking extra time and effort to make these insecure people feel comfortable and important will be much easier than having to deal with their tantrums should their paranoia get the better of them. Everyone's emotions can be fragile now and then, including yours. Try to remember that when you're paying your tenth compliment of the hour.
Demeter
(85,373 posts)and committee meeting tonight. Keep your fingers crossed. For the other people.
Tansy_Gold
(17,860 posts)Or just make 'em think it's hell.
DemReadingDU
(16,000 posts)I think I'm hungry!
tclambert
(11,086 posts)y feliz año huevo!
(That's about all the Español I know. I'm thinking about learning more, possibly not involving eggs.)
Demeter
(85,373 posts)Demeter
(85,373 posts)
xchrom
(108,903 posts)
xchrom
(108,903 posts)Companies in the Standard & Poor’s 500 Index are paying less in interest on debt than any time in at least a decade, leaving investors more dependent on economic growth and corporate spending for equity gains in 2013.
Constituents of the benchmark gauge for American stocks such as Exxon Mobil Corp. (XOM) and Walt Disney Co. (DIS) cut interest expenses to 2.39 percent of sales in the 12 months ended Sept. 30 on average, the lowest level since at least 2002, according to data compiled by Bloomberg and Strategas Research Partners. With borrowing expenses at record lows, executives are finding it harder to squeeze costs, causing profit margins to contract for the first time since 2009.
Bears say projected revenue growth of 3.8 percent for S&P 500 companies next year won’t be enough to drive higher profits without a decline in expenses. Bulls point to 8.9 percent profit growth estimated for next year, equity valuations at a 12 percent discount to the six-decade average and an economic recovery as reasons chief executive officers will start to spend the $1 trillion in cash they’ve built up since the recession.
“The consensus view is there’s not much more room for margin expansion,” Nick Sargen, who oversees $43 billion as chief investment officer at Fort Washington Investment Advisors in Cincinnati, said in a phone interview. “If we’ve plateaued on profit margins, then the case has to be that profit growth going forward is more a function of the overall growth rate of the U.S. and global economy.”
xchrom
(108,903 posts)Google Inc. (GOOG) avoided about $2 billion in worldwide income taxes in 2011 by shifting $9.8 billion in revenues into a Bermuda shell company, almost double the total from three years before, filings show.
By legally funneling profits from overseas subsidiaries into Bermuda, which doesn’t have a corporate income tax, Google cut its overall tax rate almost in half. The amount moved to Bermuda is equivalent to about 80 percent of Google’s total pretax profit in 2011.
The increase in Google’s revenues routed to Bermuda, disclosed in a Nov. 21 filing by a subsidiary in the Netherlands, could fuel the outrage spreading across Europe and in the U.S. over corporate tax dodging. Governments in France, the U.K., Italy and Australia are probing Google’s tax avoidance as they seek to boost revenue during economic doldrums.
Last week, the European Union’s executive body, the European Commission, advised member states to create blacklists of tax havens and adopt anti-abuse rules. Tax evasion and avoidance, which cost the EU 1 trillion euros ($1.3 trillion) a year, are “scandalous” and “an attack on the fundamental principle of fairness,” Algirdas Semeta, the EC’s commissioner for taxation, said at a press conference in Brussels.
xchrom
(108,903 posts)Inside the world’s oldest central bank, a new debate is raging over a dilemma facing monetary authorities around the globe.
Policy makers at Sweden’s 344-year-old Riksbank and elsewhere are arguing about how far they can look beyond their price mandates and focus instead on economic growth, employment or financial stability when inflation threats are either not pressing or deemed to be passing. This marks a shift from three decades in which central bankers battled inflation, an enemy they understood so well that most made it their singular emphasis in the 1990s.
“There are lots of things central banks are worried about at the moment, and inflation is not the highest priority,” said Stephen King, chief economist at HSBC Holdings Plc in London and a former U.K. Treasury official. “As long as people believe central banks are committed over the longer term to price stability, there is leeway to play around with other objectives.”
How much they should lean toward alternate goals is contentious. At the Riksbank, Deputy Governor Lars E.O. Svensson, who once taught economics alongside Federal Reserve Chairman Ben S. Bernanke at Princeton University in New Jersey, says keeping inflation too low hurts hiring, while Governor Stefan Ingves has said he worries about a debt bubble arising from low interest rates. The Riksbank left its benchmark rate unchanged at 1.25 percent at its October meeting.
xchrom
(108,903 posts)McDonald’s Corp. (MCD) posted a surprise gain in U.S. same-store sales last month after a decline in October as the world’s largest restaurant chain increased advertising for less expensive items.
Analysts projected a drop of 0.6 percent, the average of 14 estimates compiled by Consensus Metrix. Global sales increased 2.4 percent in November, the Oak Brook, Illinois-based company said today in a statement. Analysts anticipated a gain of 0.2 percent.
McDonald’s, which has about 14,100 U.S. stores, has been pushing its Dollar Menu to attract budget-minded Americans. The Big Mac seller, which named Don Thompson chief executive officer in July, is trying to keep pace with Burger King Worldwide Inc. (BKW) and Yum! Brands Inc. (YUM)’s Taco Bell, which have been promoting new food and value items this year.
“You saw McDonald’s going on TV and pushing a lot more value” in the U.S. last month, Peter Saleh, a New York-based analyst at Telsey Advisory Group, said in an interview. “The numbers in the U.S. were particularly strong.”
xchrom
(108,903 posts)
Critics say opening India's retail sector to global supermarket chains will hurt India's poor
Angry opposition MPs have protested in India's parliament after reports that the global retail giant Walmart has been lobbying with the US lawmakers to facilitate its entry into India.
The firm disclosed that it spent $25m (£16m) on lobbying, including on issues related to "enhanced market access for investment in India".
The upper house has been adjourned twice on the issue since the morning.
Last week, MPs voted to open the retail sector to foreign competition.
xchrom
(108,903 posts)China's export growth came in below market expectations in November as global demand remained subdued.
Exports grew 2.9% and imports were flat compared to the previous year. Analysts were expecting exports to jump 9%.
The trade data creates some uncertainty about China's economic outlook.
It contrasts with data released at the weekend which signalled a rebound in the Chinese economy, as factory output and retail sales jumped to eight-month highs.
xchrom
(108,903 posts)Italian stocks have fallen sharply, reacting to news that Prime Minister Mario Monti plans to resign and former premier Silvio Berlusconi is to run for office again.
The main Italian stock index fell 3.1%.
Other indexes throughout Europe were also lower, with banks the worst hit among shares.
Mr Monti became the leader of a technocrat government in 2011 after investors became worried about Italy's economic health.
Demeter
(85,373 posts)xchrom
(108,903 posts)Revised growth figures for Japan have suggested that the world's third-largest economy is in recession.
The economy shrank by 0.9% in the July-September quarter, while the April-June quarter was revised from 0.1% growth to show a contraction of 0.03%.
That means that Japan is technically in recession, having contracted for two quarters in a row.
Japan has been hit hard by a strong yen that dents exports and a diplomatic row with major trade partner China.
just1voice
(1,362 posts)Kittycat cartoons. Welcome to iMerica, where texting while driving to the strip mall is much more entertaining than worrying about your underwater mortgage, student loan debt, lack of health care, job insecurity and fiscal cliff austerity.
Yes, pwretty widdle kitties are such a cute distraction while the collapse of our entire financial/military empire looms over us after decades of trading common sense for propaganda and war. Yes, soon it'll all be trickling down on us, all of the riches promised if we just believe that letting criminal corporations and torturers go free is "the way forward".
We can do it iMerica, one app at a time!
Demeter
(85,373 posts)
