Welcome to the new version of European Tribune. It's just a new layout, so everything should work as before - please report bugs here.
Display:
 ECONOMY & FINANCE 


Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Tue Oct 12th, 2010 at 02:01:04 PM EST
Halifax share windfall shrinks to £38 | Business | The Guardian

The cost of the banking crisis to private investors - many of them first-time investors - is spelled out by new research showing that the near £1,500 windfall of shares handed to millions of former members of Halifax when it converted from a building society has collapsed in value to £38.

On the second anniversary of the multi-billion taxpayer bailout of the banking system, research by the Guardian and stock broker Hargreaves Lansdown shows the devastating impact on the 7.6m Halifax customers who received free shares at its landmark stock market flotation in 1997.



Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Tue Oct 12th, 2010 at 02:21:16 PM EST
[ Parent ]
Mortgage lenders post 8% drop in August new home loans | Money | guardian.co.uk

Conflicting information about the strength of the housing market was reported today when lenders announced the number of new loans fell 8% in August compared to July but the government's house price index indicated prices had risen month on month.

The Council for Mortgage Lenders (CML) said loans to home movers dropped 10% to 33,200 and their average deposit grew from 33% in July to 34% in August, meaning they were borrowing at the lowest loan-to value ratios for six years. The proportion of income spent on interest payments had also dropped marginally (0.1%) month on month to 9.5%, and by 1.9% from August 2009.



Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Tue Oct 12th, 2010 at 02:25:08 PM EST
[ Parent ]
World First (World_First) on Twitter

HOENIG - FURTHER QUANTITATIVE EASING A 'RISKY' STRATEGY THAT COULD LEAD TO 4 PCT-5 PCT INFLATION

 HOENIG - FED SHOULD REMOVE COMMITMENT TO LOW RATES FOR EXTENDED PERIOD, RAISE RATE TO 1 PCT



Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Tue Oct 12th, 2010 at 02:42:05 PM EST
[ Parent ]
SYSTEMIC FEAR, MODERN FINANCE AND THE FUTURE OF CAPITALISM   Jonathan Nitzan & Shimshon Bichler

Crisis of Capital, Crisis of Theory: A Conference of the Forum on Capital as Power

ABSTRACT:
Is capitalism about to collapse? Like every other mode of power, capitalism rests on confidence in obedience: the confidence of the rulers in the obedience of the ruled. Emperors are sure of their rule over obedient subjects and slaves; lords are certain they can rule their obedient vassals and serfs; and capitalists trust the obedience of their underlying masses. The confidence of rulers is mediated through their dominant dogma: when the dogma holds, the rulers are hubristic, steadfast and ruthless; when the dogma disintegrates, the rulers, gripped by systemic fear, become hesitant and lose their ability to rule.

Systemic fear often culminates in systemic collapse. The downfall of the last Babylonian emperor, Belshazzar, the collapse of Easter Island, the French Revolution against the ancien régime, the fall of Soviet Union and many more such episodes were all preceded by systemic fear: for whatever reason, the rulers lost faith in their dogma and confidence in their subjects' obedience. But their systemic fear remained elusive: we know of it only anecdotally, subjectively, and always retrospectively - after their mode of power lies in ruins.

Modern finance has made systemic fear transparent. For the first time in history, we have an objective, numerical measure of the rulers' confidence in obedience - and this measure is available not in retrospect, but here and now. The indicator in question is forward-looking capitalization: the financial ritual with which capitalists discount to present value their expected future profit. This ritual stands at the heart of the modern capitalist dogma, and it is currently broken: for the past decade, capitalists have been looking not forward to the future, but backward to the past. In other words, capitalists no longer trust their own dogma: they are no longer confident in the obedience of the ruled or in their own ability to rule.

DATE/TIME/PLACE:

Friday, October 29, 2010, 3:00-5:00 pm || York Lanes, Room 280N || Keele Campus of York University Toronto, Ontario Canada

Original paper, HTML format, PDF

The paper came out this summer and was an update of one from the summer of 2009. His thesis seems increasingly confirmed by events. The financial sector has made such a mess of things that they cannot act in their normal way nor can they find an acceptable, (to them) way to deal with the massive fraudulent debt that they have created. The authors show that this has been the case since 2000.

That businesses act differently during times of crisis and times of prosperity doesn't seem to radical an idea, but it is not a part of Mainstream Economics.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Oct 12th, 2010 at 03:23:14 PM EST
[ Parent ]
Is capitalism about to collapse?

If it does it will be replaced by something worse if a world war doesn't intervene. Think about who controls everything. If they are not viscerally threatened they will simply concoct another scheme to enslave and impoverish the masses.

The good news ... it's only a life sentence. You eventually leave this planet of idiots.

by THE Twank (yatta blah blah @ blah.com) on Tue Oct 12th, 2010 at 05:23:16 PM EST
[ Parent ]
I suppose a world war would not be manipulated by your supposed controllers of everything?

How about putting in some careful thought before hitting the Post button?

by afew (afew(a in a circle)eurotrib_dot_com) on Wed Oct 13th, 2010 at 01:21:17 AM EST
[ Parent ]
The problem with that idea is that a world war, even if it avoided nuclear involvement, would involve mainland USA because if anywhere is gonna have a war, the US is high on the list.

and the rich do not want war in their own backyard as wars are messy and there might be collateral damage the rich do not want.

So, there won't be a war.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Wed Oct 13th, 2010 at 05:33:04 AM EST
[ Parent ]
Ketchup economists have been telling everyone who would listen that "finance is the brain of the economy".

It appears that the economy has a terminal case of Bovine Spongiform Encephalopathy.

By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan

by Migeru (migeru at eurotrib dot com) on Wed Oct 13th, 2010 at 02:49:30 AM EST
[ Parent ]
Bovine Spongiform EconomicsTM?

Maybe we need a macro...

The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman

by dvx (dvx.clt ät gmail dotcom) on Wed Oct 13th, 2010 at 05:04:24 AM EST
[ Parent ]
Been done.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Wed Oct 13th, 2010 at 05:46:38 AM EST
[ Parent ]
Neo-Classical Economics = Bovine Spongiform Economics

or

NCE = BSE

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Oct 13th, 2010 at 02:10:41 PM EST
[ Parent ]
The advantage of that is that the acronym for Bullshit Economics is the same...

By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan
by Migeru (migeru at eurotrib dot com) on Wed Oct 13th, 2010 at 05:30:16 PM EST
[ Parent ]
<blockqoute>It appears that the economy has a terminal case of Bovine Spongiform Encephalopathy.</blockqoute>

And here I thought it was just a serious case of Head in Ass disease.  

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg

by ManfromMiddletown (manfrommiddletown at lycos dot com) on Wed Oct 13th, 2010 at 11:05:35 AM EST
[ Parent ]
It is both. The Head In Ass Syndrome just tells us what the sponge has been absorbing.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Oct 13th, 2010 at 02:03:35 PM EST
[ Parent ]
That's an interesting paper.

Completely unexpectedly, it turns out that you can't run an economy on trust while also demanding that financial transactions screw the counterparty and/or associated employees to the maximum possible extent.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Wed Oct 13th, 2010 at 05:58:33 AM EST
[ Parent ]
No COLA - Bernanke gets Trumped?   Bruce Krasting  on Zero Hedge

Social Security announced that there will be no increase in benefit levels for another year. The reason? Deflation. Based on the Cost of Living index no increase in checks is justified. You might get an argument on that from the 60+% of the beneficiaries whose primary source of income is SS. This will impact the macro economic picture.

....

SSA will pay ~$700b in benefits this year. 3% of that comes to $21b. That is a pretty important number. Most of the SS checks are spent. Little of it is saved, so this will impact consumption on a nearly 1 to 1 basis. $21b is 1/4% of our GDP (includes multiplier). Poof!

Does this matter? Sure it does. Economists who forecast growth will have to knock down their numbers by at least ¼% as a result. There would have been some multiplier affect from the extra spending, now there won't be any. Between the cummulative impact of two years of no increases and the multiplier this could be a drag on GDP by 1/2% for 2011 versus what has been assumed.

We don't know what Ben B will do in a few weeks, but we can sort of guess about what is coming. It will be a longer-term commitment to acquire Treasury bonds. The high-end estimates are about $100b per month for a year. Something over a trillion in all. Using those kinds of numbers, I have seen estimates that the impact will be a positive to GDP to the tune of a lousy ½%.

So, the same effect as pumping $1.2trillion in QE into the economy can be had by providing a 3% Cost of Living Adjustment to Social Security checks, which would only cost $27 billion! So does the inability to change the requirements for an SS COLA stem from ideological blindness, from comitment to an agenda or from both? How can $1.2 trillion in QE be better for the financial integrity of the USA, etc., etc., etc, than a fiscal policy of deficit spending of a mere $27 trillion. Especially when spending the $27 billion is more likely to work?

A cynic might suggest that $1.2 trillion in QE would provide a larger and more opaque bonus pool for the executives of the TBTFs than would a mere $27 billion in deficit spending. Plus, Congress and the president would have to own providing a 3% COLA, while they can continue to rail at the Fed for QE and score more points with the ignorant electorate.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Oct 12th, 2010 at 03:45:07 PM EST
[ Parent ]
Let the old folks and disabled buy cheaper cat food. They say it all tastes the same.

The good news ... it's only a life sentence. You eventually leave this planet of idiots.
by THE Twank (yatta blah blah @ blah.com) on Tue Oct 12th, 2010 at 05:25:17 PM EST
[ Parent ]
"They say" is an inadequate reference source for that sentence. You should do the research yourself before making the statement. Be prepared.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Oct 12th, 2010 at 11:00:54 PM EST
[ Parent ]
And technically speaking, cat food is poisonous to humans when ingested in quantity.  Too protein-rich, even the kibble.  Buy dog food.
by Zwackus on Wed Oct 13th, 2010 at 05:32:06 AM EST
[ Parent ]
I have heard that dog food is more suited to humans. Cat food is quite repugnant.

And that's just a sniff test.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Wed Oct 13th, 2010 at 05:34:14 AM EST
[ Parent ]
How the banks got us coming and going | SocialistWorker.org

NOW THAT the same predators who pushed people into self-destructing mortgages have been caught carrying out fraudulent foreclosures, will hard-pressed homeowners finally get permanent relief?

If they organize and fight back, yes. But the banks and their political front-men and -women will do anything they can to prevent that.

The Democrats are both squirming over their role in abetting the banks' foreclosure factories and sensing a political opportunity. Thus, President Barack Obama has refused to sign what had been stealth legislation designed to speed up the "robo-signing" of foreclosure documents by forcing states to accept all such documents as valid, even if they originated in a state where this sort of dubious paperwork is standard.



Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Tue Oct 12th, 2010 at 03:48:25 PM EST
[ Parent ]
NOW THAT the same predators who pushed people into self-destructing mortgages have been caught carrying out fraudulent foreclosures, will hard-pressed homeowners finally get permanent relief?

A resounding NO!

All questions should be that easy.

The good news ... it's only a life sentence. You eventually leave this planet of idiots.

by THE Twank (yatta blah blah @ blah.com) on Tue Oct 12th, 2010 at 05:27:37 PM EST
[ Parent ]
Investors Flock to Greek Bond Sale - NYTimes.com

LONDON -- With an austerity program well underway, Greece held a successful bond sale Tuesday amid a growing debate about whether the country should be given more time to repay the international bailout loans that saved it from bankruptcy.

Greece is taking the right steps to reduce its deficit and the International Monetary Fund would allow the country more time to repay its emergency loans if the euro-zone nations agree to do the same, the I.M.F.'s managing director, Dominique Strauss-Kahn, said Sunday.

Responding to these comments in an interview with the Greek television channel Skai late Monday, the Greek finance minister, George Papaconstantinou, said that there had already been an "unofficial discussion" about a possible extension.



Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Tue Oct 12th, 2010 at 03:55:18 PM EST
[ Parent ]
Josh Rosner: "Could Violations of PSAs Dwarf Lehman Weekend?" Yves Smith naked capitalism

(PSA=Pooling and Servicing Agreements)

Josh Rosner, a well respected bank analyst (he describes himself as "a recovering GSE analyst") is circulating a client note and it takes the foreclosure crisis very seriously. The critical part is his discussion of the conveyance chain. As we indicated before, the minimum chain for a recent mortgage securitization is is A (originator) => B (sponsor) => C (custodian) => D (trust). Older deals might only have three parties, but recent vintage typically had at least four, and some as many as seven or eight.

The reason for doing this is bankruptcy remoteness. You as the buyer of a mortgage backed security want certainty in what you purchased. If an originator goes bust (as ironically many did), you don't want the creditors to say, "They were already toast by the time they set up that MBS, so the sale of the loans was a fraudulent conveyance, we are gonna take the loans back."

The way to prevent that was to introduce intermediary parties between the originator and the trust. Each party had to be independent (which meant fit the legal definition of independence; the intermediary parties and even many originators were dependent on financing called warehouse lines from the investment bank packager/distributors). The note (the borrower IOU) had to be endorsed (like a check) to the next party in the chain, who then endorsed it over to the party after that, with the last party being the trust.

Rosner's remarks are consistent with our prior posts, and he adds a couple of important additional observations: We have a larger and more significant concern, which, if proved out, could call into
question the validity of nearly all securitizations and raise material questions about
whether "true sale" was achieved.  

   Nearly all Pooling and Servicing Agreements require that "On the Closing Date, the Purchaser will assign to the Trustee pursuant to the Pooling and Servicing Agreement all of its right, title and interest in and to the Mortgage Loans and its rights under this Agreement (to the extent set forth in Section 15), and the Trustee shall succeed to such right, title and interest in and to the Mortgage Loans and the Purchaser's rights under this Agreement (to the extent set forth in Section 15)". Also, an Assignment of Mortgage must accompany each note and this almost never happen.

    We believe nearly every single loan transferred was transferred to the Trust in "blank" name. That is to say the actual loans were apparently not, as of either the cut-off or closing dates, assigned to the Trust as required by the PSA.

    Rather than continue to fight for the "put-back" of individual loans the investors may be able to sue for and argue that the "true sale" was never achieved. To think of it simply, if you go to sell your car and you endorse your title but neither you nor the party you are selling it to sign their name who owns the car? It appears you likely still do.

    While there may be a view that the government can intervene it appears that the private contract spelling out the terms was violated at the transfer point. The Trustee, who has responsibility to make sure all loans were properly assigned to the trust, may have liability. So too might the lawyers who issued the legal opinions.


Obama might try to help Wall Street, but, in the end, it could well be the sharks turning on one another that ends the fiasco. It might not be a good time to have been one of the institutions that provided "warehouse lines" of credit to the various "mortgage brokers" who originated the loans under the "originate to sell" model, especially if your institution was also involved in servicing the mortgages and is securitizing them. Given how things were going in 2004 it seems unlikely that anyone in any particular chain was truly independent. It's getting interestinger and interestinger.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Oct 12th, 2010 at 04:44:29 PM EST
[ Parent ]
Yea, it gets interesting, but I just think that means the con that will be put in place to save the finance industry will be more damaging to the interests of the dumb schmucks who bought that shit home owners

keep to the Fen Causeway
by Helen (lareinagal at yahoo dot co dot uk) on Tue Oct 12th, 2010 at 05:19:26 PM EST
[ Parent ]
Doesn't the latest version just mean that none of the loan transfers were legal, so that the homeowner is simply liable to the mortgage originator (assuming the latter has kept his records....)?
by gk (g k quattro due due sette "at" gmail.com) on Wed Oct 13th, 2010 at 02:48:38 AM EST
[ Parent ]
I am not a lawyer, but it seems to me that homeowners finding problems with the chain of custody for their mortgage might be justified in making payments into an escrow account. The situation is genuinely FUBAR.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Oct 13th, 2010 at 01:56:53 PM EST
[ Parent ]
Associated Press

NEW YORK (AP) -- In an effort to rush through thousands of home foreclosures since 2007, financial institutions and their mortgage servicing departments hired hair stylists, Walmart floor workers and people who had worked on assembly lines and installed them in "foreclosure expert" jobs with no formal training, a Florida lawyer says.

In depositions released Tuesday, many of those workers testified that they barely knew what a mortgage was. Some couldn't define the word "affidavit." Others didn't know what a complaint was, or even what was meant by personal property. Most troubling, several said they knew they were lying when they signed the foreclosure affidavits and that they agreed with the defense lawyers' accusations about document fraud.



Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Tue Oct 12th, 2010 at 08:31:05 PM EST
[ Parent ]
Oh lord.  Their own employees are admitting incompetence and fraud.

This gets better all the time.

Skepticism is the first step on the road to truth. -- Denis Diderot

by ATinNM on Tue Oct 12th, 2010 at 10:11:25 PM EST
[ Parent ]
But didn't you know? Fraud on the court is just a technical matter. It is fortunate that the biggies are about to go to legal/financial Armageddon. I don't get the feeling that, otherwise, The US Department of Justice would do anything about these "technical" problems.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Oct 12th, 2010 at 10:58:13 PM EST
[ Parent ]
IANAL

Fraud is a tort and thus someone who commits fraud is open to a Civil Action.  

Knowingly committing a fraud rips the corporate shield, thus the Board of Directors and management become personally liable to the victim for compensation.

How that can play-out is anybody's guess.


Skepticism is the first step on the road to truth. -- Denis Diderot

by ATinNM on Wed Oct 13th, 2010 at 02:27:02 AM EST
[ Parent ]
Foreclosure Fraud: It's Worse Than You Think   Diana Olick  CNBC Real Estate Reporter  (H/T Business Insider)

A source of mine pointed me to a recent conference call Citigroup had with investors/clients.  It featured Adam Levitin, a Georgetown University Law professor who specializes in, among many other financial regulatory issues, mortgage finance. Levitin says the documentation problems involved in the mortgage mess have the potential "to cloud title on not just foreclosed mortgages but on performing mortgages."

The issues are securitization, modernization and a whole lot of cut corners. Real estate law requires real paper transfer of documents and titles, and a lot of the system went electronic without much regard to that persnickety rule. Mortgages and property titles are transferred several times in the process of a home purchase from originators to securitization sponsors to depositors to trusts. Trustees hold the note (which is the IOU on the mortgage), the mortgage (the security that says the house is collateral) and the assignment of the note and security instrument.

The issue is in that final stage getting to the trust. The law demands that when the papers get moved around they are "wet ink," that is, real signatures on real paper. But Prof. Levin tells me that's not the worst of it. Affidavits assigned to the notes and security instruments are supposed to be endorsed over to the trust at the time of sale, but in many foreclosure scenarios the affidavits have been backdated illegally.

So with the chain of documentation now in question, and trustee ownership in question, here is one legal scenario, according to Prof. Levitin:

The mortgage is still owed, but there's going to be a problem figuring out who actually holds the mortgage, and they would be the ones bringing the foreclosure. You have a trust that has been getting payments from borrowers for years that it has no right to receive. So you might see borrowers suing the trusts saying give me my money back, you're stealing my money. You're going to then have trusts that don't have any assets that have been issuing securities that say they're backed by a whole bunch of assets, and you're going to have investors suing the trustees for failing to inspect the collateral files, which the trustees say they're going to do, and you're going to have trustees suing the securitization sponsors for violating their representations and warrantees about what they were transferring.

Josh Rosner, of Graham-Fisher, put the following out in a note today, claiming violations of pooling and servicing agreements on mortgages could dwarf the Lehman weekend:

   Nearly all Pooling and Servicing Agreements require that... (See quote in Yves article above. It is more complete.)




As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Oct 13th, 2010 at 12:37:40 AM EST
[ Parent ]
And there is an interesting comment thread at the Business Insider article.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Oct 13th, 2010 at 12:47:19 AM EST
[ Parent ]
My fave so far:
Wall Street Begins To Fear Nightmare Foreclosure-Gate Scenario Where All Of Housing Finance Is Wrecked
You can't possibly believe that the Constitution has any legal standing anymore. Are you freaking retarded? If you were to read the US Constiution to a Congressman they'd laugh in your face. We're a banana republic now where the rule of law is whatever the guy with the money and the guns says it is, and that guy ain't you, sucker.

Twank, is that you?
by Bernard on Wed Oct 13th, 2010 at 09:45:08 AM EST
[ Parent ]
I still believe that the problem is so serious that pointy heads in Chicago, DC & NYC are gonna be pushed into a room and ordered to find a way out that reconciles this and protects the banking system.

And I believe that all of those people who have issues with their mortgages, even if they can demonstrate that the paper is worthless, will lose out. Because they'd rather protect the uberclass of financiers than the American middle class.

and if the level of dispossession is sufficiently large, America is heading to a bad place.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Wed Oct 13th, 2010 at 05:37:51 AM EST
[ Parent ]
Citigroup Call On Implications On Foreclosure Crisis: "Just The Tip Of The Iceberg" | zero hedge
"Our speaker predicted that more and more lenders are likely to stop their foreclosure processes in both judicial and non-judicial states. He also expects more states' attorney generals to get involved. At the federal level, it is possible than banking regulators might step in as there is legal and reputational risk for the banks involved. Ultimately, if these issues do in fact escalate, the Administration may try to broker some sort of settlement. If such deal brokering does take place, Levitin believes that "some payment" will be exacted from the lenders and servicers. The Administration could bargain for more mortgage principal write downs." In other words, the endgame will likely end up being the extraction of material concession from the banking syndicate, in the form of systemic mortgage writedowns, with Obama's blessing, which will likely put the 25% of homeowners who are underwater on equal footing with the other 75%. It may turn out that this was the plan all along. And people naively wonder why banks have hundreds of billions in cash stashed on the sidelines...


"Ce qui vient au monde pour ne rien troubler ne mérite ni égards ni patience." René Char
by Melanchthon on Wed Oct 13th, 2010 at 06:47:06 AM EST
[ Parent ]
BBC News - JP Morgan reports $4.4bn third-quarter profit

JP Morgan has reported a 23% rise in profit in the third quarter, as the bank was able to set aside less money to cover loan losses.

The company reported a net profit of $4.4bn (£2.8bn), compared with a profit of $3.6bn a year ago.

The bank set aside $1.5bn for retail credit losses during the quarter, less than half the $3.9bn it set aside during the third quarter of 2009.



Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Wed Oct 13th, 2010 at 08:08:44 AM EST
[ Parent ]
Currency wars: China should impose green taxes on its exports | vox EU - Gérard Roland
There is a creative solution that would show genuine international leadership on the part of Chinese leaders: start imposing a green tax on Chinese exports. This would have the same effect as an import tariff imposed on the US side but the revenue would instead go to the Chinese government.

If they use the tariff revenues solely for green investments to reduce Chinese carbon emissions, they would achieve two goals at the same time:

  1. reduce the international currency tensions that risk leading to dangerous trade wars while saving face,
  2. show international leadership in adjustment to climate change.

China has, after all, become a main manufacturing hub in today's world economy and it seems only normal that all countries that benefit from Chinese goods pay their part in reducing carbon emissions related to that manufacturing process.

If Chinese leaders were bold and creative enough to make such a move, it would certainly not be enough to shame US politicians into doing something about climate change but it would further isolate the all-too-large-lunatic fringe in the US that claims that climate change is a hoax.

It would certainly do a lot to show that Chinese leaders are able to think beyond the sole interests of their country and exercise some international leadership in one of the most important issues of the twenty-first century.

by Bernard on Wed Oct 13th, 2010 at 09:36:24 AM EST
[ Parent ]
it would further isolate the all-too-large-lunatic fringe in the US that claims that climate change is a hoax.

I can see it now "Look Climate change taxes ARE a communist plot, and now we've got proof"

Any idiot can face a crisis - it's day to day living that wears you out.

by ceebs (ceebs (at) eurotrib (dot) com) on Wed Oct 13th, 2010 at 10:21:38 AM EST
[ Parent ]

Display:

Occasional Series

24 July 2014
by dvx - Jul 23
59 comments