There was a time when everyone took it for granted that unemployment insurance, which normally terminates after 26 weeks, would be extended in times of persistent joblessness. It was, most people agreed, the decent thing to do.
Greece's finance minister, George Papaconstantinou, has said the country cut its deficit by 42% this year. He hoped Greece would be able to borrow from financial markets again by 2011. It means the country is beating a target set by the IMF and EU under the terms of a 110bn-euro (£73bn, $88bn) emergency loan extended this year. According to Greek central bank data, the government's deficit was 11.5bn euros in the first half of the year, down from 19bn euros a year earlier.
Greece's finance minister, George Papaconstantinou, has said the country cut its deficit by 42% this year.
He hoped Greece would be able to borrow from financial markets again by 2011.
It means the country is beating a target set by the IMF and EU under the terms of a 110bn-euro (£73bn, $88bn) emergency loan extended this year.
According to Greek central bank data, the government's deficit was 11.5bn euros in the first half of the year, down from 19bn euros a year earlier.
This weekend we celebrated America's Independence Day. But are we really a free nation? The truth is that it is really hard to argue that we are "free" when our currency system and our economy are run by an unelected privately-owned central bank. You see, the truth is that the U.S. government does not "print money" whenever it wants. Under the current system, in order to get more U.S. currency, the U.S. government has to borrow it. The Federal Reserve creates the new currency out of thin air and then either keeps the "U.S. Treasury bonds" they get in return from the U.S. government or they sell them off to others. But what kind of sense does that make? Why does a "free government" have to go into debt to print its own currency? It is the U.S. government that should be printing U.S. currency - not a privately-owned bank called the Federal Reserve. .... The truth is that the Federal Reserve is about as "federal" as Federal Express is. And no unelected private central bank should be "running" our economy. Actually the free market should be running our economy, but if anyone is going to run it, it should at least be the government that we have elected. But instead we have a group of unelected bureaucrats making our interest rate decisions, determining our money supply levels and deciding which of their friends get big bailouts. That isn't the American Dream! What kind of "democracy" and "freedom" is that? The sad truth is that as long as we allow an unelected privately-owned central bank to run our economy we will not be truly free. The reality is that the Federal Reserve desperately needs to be audited. The Federal Reserve has never undergone a true comprehensive audit since it was created back in 1913. The truth is that we have very little idea of what is really going on inside that institution.
You see, the truth is that the U.S. government does not "print money" whenever it wants. Under the current system, in order to get more U.S. currency, the U.S. government has to borrow it. The Federal Reserve creates the new currency out of thin air and then either keeps the "U.S. Treasury bonds" they get in return from the U.S. government or they sell them off to others. But what kind of sense does that make? Why does a "free government" have to go into debt to print its own currency? It is the U.S. government that should be printing U.S. currency - not a privately-owned bank called the Federal Reserve.
....
The truth is that the Federal Reserve is about as "federal" as Federal Express is. And no unelected private central bank should be "running" our economy. Actually the free market should be running our economy, but if anyone is going to run it, it should at least be the government that we have elected. But instead we have a group of unelected bureaucrats making our interest rate decisions, determining our money supply levels and deciding which of their friends get big bailouts. That isn't the American Dream! What kind of "democracy" and "freedom" is that? The sad truth is that as long as we allow an unelected privately-owned central bank to run our economy we will not be truly free.
The reality is that the Federal Reserve desperately needs to be audited. The Federal Reserve has never undergone a true comprehensive audit since it was created back in 1913. The truth is that we have very little idea of what is really going on inside that institution.
A specific EU budget line for the new EU stabilisation mechanism should be created as soon as possible, to ensure its credibility, Council, Commission and Parliament negotiators agreed at a three-way meeting on Wednesday. With a specific budget line, as proposed by Parliament, the mechanism could be mobilised within 24 hours if necessary. MEPs also expressed their disappointment at the Council's proposed cuts in the 2011 budget. The European stabilisation mechanism, including an EU loan guarantee worth €60 billion, was agreed upon between the EU Member States early in May, in response to reaction to the Greek debt crisis. At Wednesday's meeting, Council and Commission representatives accepted Parliament's specific line proposal, which would provide EU budget backing for the mechanism, and decided to create a budget line for the mechanism in an amendment to the 2010 budget.
A specific EU budget line for the new EU stabilisation mechanism should be created as soon as possible, to ensure its credibility, Council, Commission and Parliament negotiators agreed at a three-way meeting on Wednesday. With a specific budget line, as proposed by Parliament, the mechanism could be mobilised within 24 hours if necessary. MEPs also expressed their disappointment at the Council's proposed cuts in the 2011 budget.
The European stabilisation mechanism, including an EU loan guarantee worth €60 billion, was agreed upon between the EU Member States early in May, in response to reaction to the Greek debt crisis.
At Wednesday's meeting, Council and Commission representatives accepted Parliament's specific line proposal, which would provide EU budget backing for the mechanism, and decided to create a budget line for the mechanism in an amendment to the 2010 budget.
A different bonus cultureThis new EU wide law will transform the bonus culture and end incentives for excessive risk taking. These incentives for chasing short term bonuses over the long term health of the financial system played a key role in the crisis. The new rules mean reward is linked to long term performance. Upfront cash bonuses will be capped at 30% of the total bonus and to 20% for particularly large bonuses. In place of upfront cash between 40 and 60% of any bonus must be deferred and can be recovered if investments do not perform as expected. Moreover at least 50% of the total bonus would be paid as "contingent capital" (funds to be called upon first in case of bank difficulties).Bonuses will also have to be capped to salary. Each bank will have to establish limits on bonuses related to salaries, on the basis of EU wide guidelines, to help bring down the overall, disproportionate, role played by bonuses in the financial sector.Finally, bonus-like pensions will also be covered. Exceptional pension payments must be held back in instruments such as contingent capital that link their final value to the underlying strength of the bank. This will avoid situations, similar to those experienced recently, in which some bankers retired with substantial pensions unaffected by the crisis.
A different bonus culture
This new EU wide law will transform the bonus culture and end incentives for excessive risk taking. These incentives for chasing short term bonuses over the long term health of the financial system played a key role in the crisis. The new rules mean reward is linked to long term performance.
Upfront cash bonuses will be capped at 30% of the total bonus and to 20% for particularly large bonuses. In place of upfront cash between 40 and 60% of any bonus must be deferred and can be recovered if investments do not perform as expected. Moreover at least 50% of the total bonus would be paid as "contingent capital" (funds to be called upon first in case of bank difficulties).
Bonuses will also have to be capped to salary. Each bank will have to establish limits on bonuses related to salaries, on the basis of EU wide guidelines, to help bring down the overall, disproportionate, role played by bonuses in the financial sector.
Finally, bonus-like pensions will also be covered. Exceptional pension payments must be held back in instruments such as contingent capital that link their final value to the underlying strength of the bank. This will avoid situations, similar to those experienced recently, in which some bankers retired with substantial pensions unaffected by the crisis.
If anyone thinks this will end risk-taking I have a bridge selling for really cheap. In fact, it doesn't seem to me that this will be much of a restriction. It's not like firms were in the habit of giving out 100% of the bonuses in cash, or that they were not using deferred compensation already...
In fact, it doesn't seem to me that this will be much of a restriction. It's not like firms were in the habit of giving out 100% of the bonuses in cash, or that they were not using deferred compensation already...
Harsher treatment for bailed out banksTo address moral hazard the law will introduce special measures for bailed out banks and it will restrain the overall amounts paid in bonuses, encouraging bankers to prioritise a stronger capital base and lending to the real economy over their own pay and perks. The rules will also require that the repayment of taxpayers is the priority.Capital requirements for stable banksNew capital rules for re-securitisations and the trading book will ensure banks are properly covering the risks they are running on their trading activity, including for types of investments like mortgage backed securities that were central to the crisis.
To address moral hazard the law will introduce special measures for bailed out banks and it will restrain the overall amounts paid in bonuses, encouraging bankers to prioritise a stronger capital base and lending to the real economy over their own pay and perks. The rules will also require that the repayment of taxpayers is the priority.
Capital requirements for stable banks
New capital rules for re-securitisations and the trading book will ensure banks are properly covering the risks they are running on their trading activity, including for types of investments like mortgage backed securities that were central to the crisis.
The text agreed by Council and European Parliament negotiators on bank capital requirements and bonuses, which would subject them to the capital requirements directive, is set to be endorsed at Parliament's July plenary session. Below are some replies to the most frequently asked questions.
Overseas reports on the weekend said that bankers advising BP were trying to gauge the interest of rival oil companies and sovereign wealth funds in making a 5% to 10% investment in the company at a cost of around US$9-billion. Adding fuel to the speculation, a top oil executive in the North African state of Libya said Monday he would recommend the country's sovereign wealth fund invest in BP. BP is interesting now with the price lower by half and I still have trust in BP, I will recommend it to the [Libyan Investment Authority]," Shokri Ghanem, chairman of Libya's Nation Oil Co., told Dow Jones. "It's a good opportunity for bargain hunters." "Based on our numbers, BP doesn't need to do this by any means," said Pavel Molchanov, an energy analyst with Raymond James. "But clearly many investors have a lack of confidence in BP after the last two and a half months and a capital injection from a sovereign wealth fund would provide a tangible vote of confidence from a high-profile investor." Among those high up on the list of potential investors is the Kuwait Investment Office, a Middle East sovereign wealth fund that already owns a nearly 2% stake in BP.... Certainly the shares look cheap based on many metrics, but the headline risk is still very high," said Mr. Molchanov, who's had a "hold" on BP's shares since April 29. Read more...
Adding fuel to the speculation, a top oil executive in the North African state of Libya said Monday he would recommend the country's sovereign wealth fund invest in BP.
BP is interesting now with the price lower by half and I still have trust in BP, I will recommend it to the [Libyan Investment Authority]," Shokri Ghanem, chairman of Libya's Nation Oil Co., told Dow Jones. "It's a good opportunity for bargain hunters."
"Based on our numbers, BP doesn't need to do this by any means," said Pavel Molchanov, an energy analyst with Raymond James. "But clearly many investors have a lack of confidence in BP after the last two and a half months and a capital injection from a sovereign wealth fund would provide a tangible vote of confidence from a high-profile investor."
Among those high up on the list of potential investors is the Kuwait Investment Office, a Middle East sovereign wealth fund that already owns a nearly 2% stake in BP....
Certainly the shares look cheap based on many metrics, but the headline risk is still very high," said Mr. Molchanov, who's had a "hold" on BP's shares since April 29.
Read more...
Diversity is the key to economic and political evolution.
General Motors is seeking a line of credit of at least $5 billion from banks to enable it to repay debt and prepare for another decline in U.S. auto sales, said a person familiar with the talks. GM had $23.3 billion of cash and about $14 billion of debt as of March 31, according to its first-quarter financial report. Although the automaker repaid the final $5.8 billion of government loans in April, the federal government still owns a 61% stake. A public stock offering, expected to begin later this year, would enable the government to sell at least some of its shares in GM.... The automaker is restructuring unprofitable European operations, but growing in China, Russia, India and Brazil, where most of the auto industry's growth is to occur in the next decade. GM sold more cars in China in the first half of 2010 (1.21 million) than in the U.S. (1.08 million). It also has given stock valued at $6.66 million to 14 top managers, including $1.33 million worth to Chairman and CEO Ed Whitacre, according to a filing with the Securities and Exchange Commission. Read more...
GM had $23.3 billion of cash and about $14 billion of debt as of March 31, according to its first-quarter financial report. Although the automaker repaid the final $5.8 billion of government loans in April, the federal government still owns a 61% stake. A public stock offering, expected to begin later this year, would enable the government to sell at least some of its shares in GM....
The automaker is restructuring unprofitable European operations, but growing in China, Russia, India and Brazil, where most of the auto industry's growth is to occur in the next decade. GM sold more cars in China in the first half of 2010 (1.21 million) than in the U.S. (1.08 million).
It also has given stock valued at $6.66 million to 14 top managers, including $1.33 million worth to Chairman and CEO Ed Whitacre, according to a filing with the Securities and Exchange Commission.
Or should I write GROWTH!!!1!!eleventyone!!11!!!
Selling one product in the first year and five products in the second year is 500% growth. And it also means you've sold 6 products over those two years.
Dippy-whoop.
And there's also the sad fact the planet doesn't have enough oil or even enough power production capability for China to achieve the same car ownership percentage as the US.
Or even Europe.
The whole thing is a Marketing Fantasy.
...clearly many investors have a lack of confidence in BP after the last two and a half months
Golly. Yah THINK?
Could it be that the hundreds of billions in potential liability for being a bunch of fuck-ups has ANYTHING to do with that?
