The EU is pushing ahead too fast with plans to reform its financial architecture, warns a report by the UK's treasury select committee published on Monday (16 November). The Swedish EU presidency hopes finance ministers meeting on 2 December will back amended European Commission proposals that were published in September, with the European Parliament's approval also needed. The proposals - part of the EU's response to the financial crisis - envisage a new European Systemic Risk Board to monitor for macroeconomic dangers such as the build up of bubbles, and three new supervisory authorities for banking, insurance and securities.
The Swedish EU presidency hopes finance ministers meeting on 2 December will back amended European Commission proposals that were published in September, with the European Parliament's approval also needed.
The proposals - part of the EU's response to the financial crisis - envisage a new European Systemic Risk Board to monitor for macroeconomic dangers such as the build up of bubbles, and three new supervisory authorities for banking, insurance and securities.
Alistair Darling will be urged today by MPs to put the brakes on "overambitious" plans to toughen pan-European regulation of the financial sector, amid fears that the project is being rushed through.The chancellor is under pressure to do a deal with European finance ministers at their next meeting on December 2 to create the new financial architecture, intended to beef up cross-border regulation.But the Commons Treasury committee says it has identified "serious problems" with the plans to create a European Systemic Risk Board, which would focus on preventing bubbles and other macroeconomic dangers, as well as three pan-European agencies to regulate banks, insurers and securities firms. The committee's report urges Mr Darling and other EU ministers to hold back before agreeing the draft legislation.
The chancellor is under pressure to do a deal with European finance ministers at their next meeting on December 2 to create the new financial architecture, intended to beef up cross-border regulation.
But the Commons Treasury committee says it has identified "serious problems" with the plans to create a European Systemic Risk Board, which would focus on preventing bubbles and other macroeconomic dangers, as well as three pan-European agencies to regulate banks, insurers and securities firms. The committee's report urges Mr Darling and other EU ministers to hold back before agreeing the draft legislation.
It's heartwarming that the one area where recycling is supported unconditionally is the predictable economic soundbite.
The game idea of bullshit bingo is simple: Now, what we can do is to issue some new, Europe specific, game cards. It would also be a good tool to promote ET at conferences. I'd volunteer to hand them out to the participants of conferences, seminars, round table and panel discussions in Brussels.
Now, what we can do is to issue some new, Europe specific, game cards. It would also be a good tool to promote ET at conferences. I'd volunteer to hand them out to the participants of conferences, seminars, round table and panel discussions in Brussels.
This would be bullshit bingo for serious people.
Joe Wilson says outburst to Obama speech 'spontaneous' (CNN)
Rep. Joe Wilson shocked many observers Wednesday night when he shouted, "You lie!" after the president denied that health care legislation would provide free coverage for illegal immigrants. Some people using Twitter suggested that Wilson's retort was planned and pointed to a comment the lawmaker posted on Labor Day: "Happy Labor Day! Wonderful parade at Chapin, many people called out to oppose Obamacare which I assured them would be relayed tomorrow to DC," the tweet from Wilson's account said.
Some people using Twitter suggested that Wilson's retort was planned and pointed to a comment the lawmaker posted on Labor Day:
"Happy Labor Day! Wonderful parade at Chapin, many people called out to oppose Obamacare which I assured them would be relayed tomorrow to DC," the tweet from Wilson's account said.
A plan to give the financial watchdog new powers to tear up bank bonus contracts risks jeopardising the UK's standing as a global financial centre, City figures have warned the Government. Chancellor Alistair Darling is expected to use Wednesday's Queen's Speech to unveil plans for a Financial Services Bill that will hand more powers to regulators to stop mega bonuses. The Bill is due to allow the Financial Services Authority (FSA) to cancel contracts that would see bankers pocket excessive bonuses or pay packages that reward undue risk-taking.
Chancellor Alistair Darling is expected to use Wednesday's Queen's Speech to unveil plans for a Financial Services Bill that will hand more powers to regulators to stop mega bonuses.
The Bill is due to allow the Financial Services Authority (FSA) to cancel contracts that would see bankers pocket excessive bonuses or pay packages that reward undue risk-taking.
Hey, you could put that on an election poster. Peak oil is not an energy crisis. It is a liquid fuel crisis.
General Motors said on Monday that its finances had improved to the point that it could begin repaying its government loans, though it lost nearly $1.15 billion in the third quarter after emerging from bankruptcy in July. G.M. said it increased its cash reserves by $3.3 billion from July 10 to Sept. 30, ending the quarter with $42.6 billion on hand. It plans to make a $1 billion payment to the United States government in December, more than five years before the loans are due, and to submit similar quarterly payments after that. G.M.'s chief executive, Fritz Henderson, said the automaker's performance showed "some signs of progress and some signs of stability" and a "good, strong liquidity position."
G.M. said it increased its cash reserves by $3.3 billion from July 10 to Sept. 30, ending the quarter with $42.6 billion on hand. It plans to make a $1 billion payment to the United States government in December, more than five years before the loans are due, and to submit similar quarterly payments after that.
G.M.'s chief executive, Fritz Henderson, said the automaker's performance showed "some signs of progress and some signs of stability" and a "good, strong liquidity position."
Oracle's case for buying Sun Microsystems has failed to convince the European Commission, which issued a statement of objections to the deal on Sunday (15 November). The European Commission statement said that Oracle's purchase of Sun Microsystems would harm competition in the profitable database market, marking a departure in competition policy from the Securities and Exchange Commission in the US, which cleared the deal. The EU statement, which was reportedly issued by the executive's competition watchdog, concerns Oracle's acquisition of Sun's open source database, MySQL, which reaps about $300 million in revenue and could add to the buyer's leading Java software.
The European Commission statement said that Oracle's purchase of Sun Microsystems would harm competition in the profitable database market, marking a departure in competition policy from the Securities and Exchange Commission in the US, which cleared the deal.
The EU statement, which was reportedly issued by the executive's competition watchdog, concerns Oracle's acquisition of Sun's open source database, MySQL, which reaps about $300 million in revenue and could add to the buyer's leading Java software.
MIAHUATLÁN, Mexico -- During the best of the times, Miguel Salcedo's son, an illegal immigrant in San Diego, would be sending home hundreds of dollars a month to support his struggling family in Mexico. But at times like these, with the American economy out of whack and his son out of work, Mr. Salcedo finds himself doing what he never imagined he would have to do: wiring pesos north. Unemployment has hit migrant communities in the United States so hard that a startling new phenomenon has been detected: instead of receiving remittances from relatives in the richest country on earth, some down-and-out Mexican families are scraping together what they can to support their unemployed loved ones in the United States. "We send something whenever we have a little extra, at least enough so he can eat," said Mr. Salcedo, who is from a small village here in the rural state of Oaxaca and works odd jobs to support his wife, his two younger sons and, now, his jobless eldest boy in California.
MIAHUATLÁN, Mexico -- During the best of the times, Miguel Salcedo's son, an illegal immigrant in San Diego, would be sending home hundreds of dollars a month to support his struggling family in Mexico. But at times like these, with the American economy out of whack and his son out of work, Mr. Salcedo finds himself doing what he never imagined he would have to do: wiring pesos north.
Unemployment has hit migrant communities in the United States so hard that a startling new phenomenon has been detected: instead of receiving remittances from relatives in the richest country on earth, some down-and-out Mexican families are scraping together what they can to support their unemployed loved ones in the United States.
"We send something whenever we have a little extra, at least enough so he can eat," said Mr. Salcedo, who is from a small village here in the rural state of Oaxaca and works odd jobs to support his wife, his two younger sons and, now, his jobless eldest boy in California.
First, Japan's new Democratic party leaders won praise from Tim Geithner, US Treasury secretary, for their "very encouraging" efforts to reduce the reliance of the world's second largest economy on exports for growth.Then, Tokyo's government bean-counters on Monday issued preliminary gross domestic product data showing the world second largest economy grew at a stronger-than-expected annualised rate of 4.8 per cent in the third quarter, two-thirds of which was powered by expansion in domestic demand.An optimist might for a moment almost dare to dream that the long awaited - long as in since the 1980s at least - rebalancing of the Japanese economy has at last begun.
Then, Tokyo's government bean-counters on Monday issued preliminary gross domestic product data showing the world second largest economy grew at a stronger-than-expected annualised rate of 4.8 per cent in the third quarter, two-thirds of which was powered by expansion in domestic demand.
An optimist might for a moment almost dare to dream that the long awaited - long as in since the 1980s at least - rebalancing of the Japanese economy has at last begun.
One of the many barometers of economic activity has started flashing a green light. The Baltic Dry Index shows the price of moving coal, iron ore, grain and other commodities by sea. Such dry bulk is used to make concrete, steel and food - so in theory a rise in shipping costs could signal increased shipping activity and more economic production ahead.After reaching a high in May 2008 of 11,793, the BDI had plunged by more than 94 per cent by December. It has recovered this year, before falling again, but in recent weeks it has really started moving. Since late September it is up more than 90 per cent to a 52-week high of 4,291. Last week its price gains outpaced even those of gold. Does this mean the global economy has turned the corner?Unfortunately, this long-watched indicator can no longer be relied on. The surge in shipping costs a couple of years ago made building ships an extremely attractive business. New shipyards were planned and some built. It takes roughly two years for a ship to be delivered after it has been ordered.
The Baltic Dry Index shows the price of moving coal, iron ore, grain and other commodities by sea. Such dry bulk is used to make concrete, steel and food - so in theory a rise in shipping costs could signal increased shipping activity and more economic production ahead.
After reaching a high in May 2008 of 11,793, the BDI had plunged by more than 94 per cent by December. It has recovered this year, before falling again, but in recent weeks it has really started moving. Since late September it is up more than 90 per cent to a 52-week high of 4,291. Last week its price gains outpaced even those of gold. Does this mean the global economy has turned the corner?
Unfortunately, this long-watched indicator can no longer be relied on. The surge in shipping costs a couple of years ago made building ships an extremely attractive business. New shipyards were planned and some built. It takes roughly two years for a ship to be delivered after it has been ordered.
The rise in the BDI shows increased demand for commodities in China after stockpiles fell. Congestion in various ports has also pressed prices. These may just offer a short-term boost, and cannot be seen as a reliable sign of smooth sailing ahead.
The strength of the euro is hitting the profits and sales of companies in the eurozone sharply, in spite of the emerging economic recovery in the region.Third-quarter results of some of the biggest companies in the currency bloc have revealed that they are suffering much steeper falls in profits than peers in European countries without the single currency, raising concerns that their competitiveness is under pressure. Eurozone companies - excluding volatile financial and oil groups - have suffered a collective sales drop of 12.5 per cent and a fall in profits of 27 per cent in the third quarter, according to an ING analysis of the results of 311 groups.European companies outside the eurozone in countries such as the UK and Switzerland have seen drops of 2.6 per cent in sales and 1.2 per cent in profits.
Third-quarter results of some of the biggest companies in the currency bloc have revealed that they are suffering much steeper falls in profits than peers in European countries without the single currency, raising concerns that their competitiveness is under pressure.
Eurozone companies - excluding volatile financial and oil groups - have suffered a collective sales drop of 12.5 per cent and a fall in profits of 27 per cent in the third quarter, according to an ING analysis of the results of 311 groups.
European companies outside the eurozone in countries such as the UK and Switzerland have seen drops of 2.6 per cent in sales and 1.2 per cent in profits.
Weak currency -> like peeing your pants, feels nice and warm at first, very nasty later. Peak oil is not an energy crisis. It is a liquid fuel crisis.
Mr. Buiter, advisor to central banks and to Godless Sachs, is at it again, comparing gold to Yap Island stone money, ranting against those who would trade valuable bank paper for something that he does not like, (but has endured as a store of wealth nonetheless for thousands of years). Once is a phenomenon, but twice is a trend. What can be dismissed as a crank rant must now be seen as a symptom of a man talking his book, and none too gracefully. We give more credence now to the rumours that the Bank of England has miscalculated badly and the LBMA et al. are 'on the hook' for more gold than they can provide, precipitating a crisis for their advisors, especially those on the wrong side of the trading advice. And further, that gold held offshore by some prominent members of the European Union are having difficulty getting their collateral back from some of the bullion banks in a deliverable condition. Quite a few options are coming due on the US Comex next week, and the bankers may be once more 'staring into an abyss.' Or setting up for a big push lower to 'save the banks.' That would be traditional central banking stewardship of late days. "We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake..." Eddie George, Governor Bank of England, in a conversation with CEO of Lonmin, September 1999 "W. Buiter, CBE, Member Monetary Policy Committee of the Bank of England (1997-2000)" Shoulder to shoulder on the brink, eh? That must have been rather intense and worthy for peers of the realm, skinning the specs. Oh, bravo.
We give more credence now to the rumours that the Bank of England has miscalculated badly and the LBMA et al. are 'on the hook' for more gold than they can provide, precipitating a crisis for their advisors, especially those on the wrong side of the trading advice. And further, that gold held offshore by some prominent members of the European Union are having difficulty getting their collateral back from some of the bullion banks in a deliverable condition.
Quite a few options are coming due on the US Comex next week, and the bankers may be once more 'staring into an abyss.' Or setting up for a big push lower to 'save the banks.' That would be traditional central banking stewardship of late days.
"We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake..." Eddie George, Governor Bank of England, in a conversation with CEO of Lonmin, September 1999
"W. Buiter, CBE, Member Monetary Policy Committee of the Bank of England (1997-2000)" Shoulder to shoulder on the brink, eh? That must have been rather intense and worthy for peers of the realm, skinning the specs. Oh, bravo.
The full SIGTARP report on AIG and its counterparty payments has been released. It contains all you need to know about the NYFED's bailout of Goldman Sachs. .... And the most critical conclusion presented by Neil Barofsky: The SIGTARP blasts the Fed's ongoing desire to keep everything hidden and under a layer of opacity, as it keeps on lying to taxpayers that all is fine with the US economy, and urges investors to part with their hard-earned dollars and "invest" in toxic husks of zombie companies, when it knows full well that the entire financial system is constantly on the cusp of yet another collapse, and the market ponzi scheme could collapse at any minute. From the report: The now familiar argument from Government officials about the dire consequences of basic transparency, as advocated by the Federal Reserve in connection with Maiden Lane III once again simply does not withstand scrutiny. Federal Reserve officials initially refused to disclose the identities of the counterparties or the details of the payments, warning that disclosure of the names would undermine AIG's stability, the privacy and business interests of the counterparties, and the stability of the markets. After public and Congressional pressure, AIG disclosed the identities. Notwithstanding the Federal Reserve warnings, the sky did not fall; there is no indication that AIG's disclosure undermined the stability of AIG or the market or damaged legitimate interested of the counterparties. The lesson that should be learned - one that has been made apparent time after time in the Government's response to the financial crisis - is that the default position, whenever Government funds are deployed in a crisis to support markets or institutions, should be that the public is entitled to know what is being done with Government funds. While SIGTARP acknowledges that there might be circumstances in which the public's right to know what its Government is doing should be circumscribed, those instances should be very few and very far between. (Emphasis by Zero Hedge)
....
And the most critical conclusion presented by Neil Barofsky: The SIGTARP blasts the Fed's ongoing desire to keep everything hidden and under a layer of opacity, as it keeps on lying to taxpayers that all is fine with the US economy, and urges investors to part with their hard-earned dollars and "invest" in toxic husks of zombie companies, when it knows full well that the entire financial system is constantly on the cusp of yet another collapse, and the market ponzi scheme could collapse at any minute.
From the report:
The now familiar argument from Government officials about the dire consequences of basic transparency, as advocated by the Federal Reserve in connection with Maiden Lane III once again simply does not withstand scrutiny. Federal Reserve officials initially refused to disclose the identities of the counterparties or the details of the payments, warning that disclosure of the names would undermine AIG's stability, the privacy and business interests of the counterparties, and the stability of the markets. After public and Congressional pressure, AIG disclosed the identities. Notwithstanding the Federal Reserve warnings, the sky did not fall; there is no indication that AIG's disclosure undermined the stability of AIG or the market or damaged legitimate interested of the counterparties. The lesson that should be learned - one that has been made apparent time after time in the Government's response to the financial crisis - is that the default position, whenever Government funds are deployed in a crisis to support markets or institutions, should be that the public is entitled to know what is being done with Government funds. While SIGTARP acknowledges that there might be circumstances in which the public's right to know what its Government is doing should be circumscribed, those instances should be very few and very far between. (Emphasis by Zero Hedge)
