Mariano Rajoy urges the ECB to do more to stimulate lending in Spain. "I would like the ECB to act like other central banks," Rajoy says, citing the BOE's Funding for Lending scheme. The central bank should give "cheap loans to financial entities so that these financial entities can lend at cheaper rates to small and medium-sized companies." This brings to mind a fairly recent episode during which the central bank was accused of applying a haircut 11 times too small to collateral pledged by Spanish banks. From Die Welt at the time: "The bonds pledged as security meet the central bank's requirements only in part." [View news story]
Good point.. but our kids, our legacy lives on ..so does humanity.
A generation of a boom for a dark age? Many would take that bargain I'm sure.
Mariano Rajoy urges the ECB to do more to stimulate lending in Spain. "I would like the ECB to act like other central banks," Rajoy says, citing the BOE's Funding for Lending scheme. The central bank should give "cheap loans to financial entities so that these financial entities can lend at cheaper rates to small and medium-sized companies." This brings to mind a fairly recent episode during which the central bank was accused of applying a haircut 11 times too small to collateral pledged by Spanish banks. From Die Welt at the time: "The bonds pledged as security meet the central bank's requirements only in part." [View news story]
Mephistopeles said to the Emperor, you have all this gold underground, it just hasn't been mined yet. So you CAN create money.
Faust agreed and Mephistopeles had his magicians create a prototype note that would duplicate money.
While it created a temporary boom, soon after, a great inflation kicked in and ruined the entire economy.
Can the price of batteries be brought down far enough to build a $40,000 electric car? That's the question that CNN Money, Barron's, and a host of others have posed to Tesla Motors (TSLA) and CEO Elon Musk, and needs to be answered before delving into Tesla's valuation. The automaker has indicated a mass-market vehicle with a range of 200 miles will hit the market in 2016 with a price point close to entries of Nissan and Toyota. Will it take a rocket scientist to pull off the engineering marvel? [View news story]
Will happen. But will Tesla do it or some outfit in China?
CECO Environmental: Solid Growth Strategy, But Pricey [View article]
Thanks for the comment. I think that Jason Dezirek, Philip's son, has proven himself based on this bio of him from the 10-K:
"Jason DeZwirek became a director of the Company in February 1994. He became Secretary of the Company on February 20, 1998. He also serves as a member of the boards of directors of the Company’s subsidiaries. He was the founder (1999), Chairman and CEO of Kaboose, Inc., which was listed on the Toronto Stock Exchange and was the largest independent family focused online media company in the world. Kaboose Inc. was sold to Disney and Barclays Private Equity in 2009. Mr. DeZwirek also previously served as a director and the Secretary of API Technologies Corp., a publicly traded company engaged in the manufacture of electronic components and systems for the defense and communications industries from November 2006 through January 2011. Mr. DeZwirek is and has also been involved in private investments activities."
LDK Solar (LDK): FQ1 net loss widens to $187.1M from $185.2M a year earlier as revenue almost halves to $104.3M. Earnings per ADS drop was -$1.21. LDK Solar has been hit by the low prices of solar panels due to a supply glut in China and by the withdrawal of subsidies in Europe. (PR) [View news story]
I hope to have within the next 5 years, a solar panal and battery system and be off grid. Hope that supply glut and low prices of panels remains when I'm ready.
Martin Armstrong Again Warns On Gold [View article]
Easiest is to be in dollars like savings account, cash under mattress/in safe. UUP is a fund that in based on the dollar index. I personally just like cash.
I had this page opened today as I was re-reading about this debacle in 1931, Europe's Sovereign debt crisis. Peter Bernsteins "The Power of Gold" ..pg. 310
"The fuses were in place. There were lit on May 11th when the explosive news of the failure of the Creditanstalt Bank in Vienna stunned the world. .. Today we would call the Creditanstalt bank too big to fail in 1931 and the Austrian government had to bail it out. But to no avail. The Creditanstalt failure in the words of the British Treasury official Ralph Hawtrey, "sent a terrible spasm of panic throughout the financial centers of the world.""
It set off defaults, abandonment of the gold standard all across Europe and make the dollar superior Vs most all the currencies in Europe.
Appreciate also that banks in the U.S. that had Euro bonds were wiped out .. thus creating even more deflation.. and making dollars even more scarce.
It's looking like the June policy meeting when the Fed will officially signal it's set to begin tapering asset purchases, according to Jon Hilsenrath. Yesterday's lukewarm jobs reports removed pressure to act right away, but the prerequisite necessary to cut back QE - an improving economy - has been met. [View news story]
Seems to me what's been met is interest rates are soaring.
Flat GDP Not A Concern In Singapore [View article]
Unexpected.. as always.
Demographics of Singapore are crucial to look at as well. Singaporeans are flat out workers. A huge percent of the population works and they work about 650 hours more per year than US and Japnanese workers do.
They're economy is "maxed out" and won't grow for a long time, assuming they begin to work less hours..enjoy the fruits of their labor. Population is going to be difficult to grow too given the small land size.
Totally agree with title of article.. flat growth should not be concern.. they're GDP per capita is already very high. Per hour worked, it can be improved.
Inflation: Making Sure It Doesn't Happen Now [View article]
Hi Ted,
I like that your siad "Fight inflation and encourage growth" .. productivity can give you that. Like the Erie Canal. It cost $100 to move a ton of flour from Buffalo to NYC by horse and wagon before they built the Canal. It also took about 32 days. When it was completed in 1825, you could move 1 ton of flour for $5 and be in NYC in just 7 days. That was massively deflationary.. it caused an economic boom Upstate NY and raised standards of living both in the US and in Europe.
Productivity growth is getting tough to get these days. It's an underrated problem the West faces.
Those quotes were sourced.. so I didn't make them up.
The emperor has no clothes we'll have to find out one day.
Martin Armstrong Again Warns On Gold [View article]
These things are dynamic and in many cases dependent on. So because gold closed up for 2012, making it 13 years in a row, that was his overall reaction to which to say gold in going to need to take a break .. and the following weekly, monthly and yearly closes will determine, as his models see it, what happens from there.
That confidence model is a "turning point" model and not necessarily a top or bottom. You got it.
It'll be Europe and the Euro that will "turn" on August 7th.. and likely go down from there over there. The dollar would stay strong..BUT, he thinks that most of the damage will have been done for gold and the crisis in Europe will likely lead to gold moving up again, so we could see a bottom in gold coming into the summer..my guess is on account of deflationary pressures and the Fed talking down QE on account of rising interest rates, which I'm sure are scaring them.
Money flows out of Europe and Japan banks, sovereign bonds and into US stocks and bonds causing too much money in the world to shift to the U.S. leaving the rest of the world facing big trouble.. with civil unrest at a minimum.
U.S. hangs in until October of 2015, then we turn down and face what he thinks will be twice as bad as the last recession. So under this scenario, gold makes it's biggest move from 2015 into 2017 as Europe faces yet another (1931) sovereign debt crisis that blows out governments and more banks.
I kind of prefer to look at RGDP per hour worked as I think that might be more objective for living standards.
If I'm content with the productivity I get from working 40 hours but in 10 years time, I can get the same production in just 30 hours, thus freeing me up for 10 hours of leisure, I may well work just 30 hours a week. My personal GDP may have stagnated, but my personal GDP per hour is up 33%, my standard of living is up as I have 10 more hours per week of leisure.
What has been occurring in advanced economies over as much as the last 50 years now is declining average annual hours worked per employed person.
So to get a truer measure of livings standards and stagnation for that matter, I like to look at GDP per hour worked.
In Australia, at least out to 2011, 2007 was the peak at just under $47 of GDP per hour worked. In 2011, it was a little less than what it was in 2007. So no gains in productivity in GDP at least per hour worked.
Productivity per hour worked in the advanced economies is definitely facing headwinds. I would not at all be surprised if it begins a long term decline.
Deflation Spell Could Send S&P 500 To 825 In 2015 [View article]
It's tricky.. reported Vs operating earnings and which one to use. I'm looking at reported Vs operated, which are lower that the earnings suggested by goldman.
I do believe Goldman is predicting way too high margin and p/e expansion.
I don't know where rates go from here, but I do think we're in for deflation ..and that deflation will couple aggregate demand drops.
Mariano Rajoy urges the ECB to do more to stimulate lending in Spain. "I would like the ECB to act like other central banks," Rajoy says, citing the BOE's Funding for Lending scheme. The central bank should give "cheap loans to financial entities so that these financial entities can lend at cheaper rates to small and medium-sized companies." This brings to mind a fairly recent episode during which the central bank was accused of applying a haircut 11 times too small to collateral pledged by Spanish banks. From Die Welt at the time: "The bonds pledged as security meet the central bank's requirements only in part." [View news story]
A generation of a boom for a dark age? Many would take that bargain I'm sure.
Mariano Rajoy urges the ECB to do more to stimulate lending in Spain. "I would like the ECB to act like other central banks," Rajoy says, citing the BOE's Funding for Lending scheme. The central bank should give "cheap loans to financial entities so that these financial entities can lend at cheaper rates to small and medium-sized companies." This brings to mind a fairly recent episode during which the central bank was accused of applying a haircut 11 times too small to collateral pledged by Spanish banks. From Die Welt at the time: "The bonds pledged as security meet the central bank's requirements only in part." [View news story]
Faust agreed and Mephistopeles had his magicians create a prototype note that would duplicate money.
While it created a temporary boom, soon after, a great inflation kicked in and ruined the entire economy.
The road to hell is paved with good intentions.
Can the price of batteries be brought down far enough to build a $40,000 electric car? That's the question that CNN Money, Barron's, and a host of others have posed to Tesla Motors (TSLA) and CEO Elon Musk, and needs to be answered before delving into Tesla's valuation. The automaker has indicated a mass-market vehicle with a range of 200 miles will hit the market in 2016 with a price point close to entries of Nissan and Toyota. Will it take a rocket scientist to pull off the engineering marvel? [View news story]
CECO Environmental: Solid Growth Strategy, But Pricey [View article]
"Jason DeZwirek became a director of the Company in February 1994. He became Secretary of the Company on February 20, 1998. He also serves as a member of the boards of directors of the Company’s subsidiaries. He was the founder (1999), Chairman and CEO of Kaboose, Inc., which was listed on the Toronto Stock Exchange and was the largest independent family focused online media company in the world. Kaboose Inc. was sold to Disney and Barclays Private Equity in 2009. Mr. DeZwirek also previously served as a director and the Secretary of API Technologies Corp., a publicly traded company engaged in the manufacture of electronic components and systems for the defense and communications industries from November 2006 through January 2011. Mr. DeZwirek is and has also been involved in private investments activities."
LDK Solar (LDK): FQ1 net loss widens to $187.1M from $185.2M a year earlier as revenue almost halves to $104.3M. Earnings per ADS drop was -$1.21. LDK Solar has been hit by the low prices of solar panels due to a supply glut in China and by the withdrawal of subsidies in Europe. (PR) [View news story]
Martin Armstrong Again Warns On Gold [View article]
I had this page opened today as I was re-reading about this debacle in 1931, Europe's Sovereign debt crisis. Peter Bernsteins "The Power of Gold" ..pg. 310
"The fuses were in place. There were lit on May 11th when the explosive news of the failure of the Creditanstalt Bank in Vienna stunned the world. .. Today we would call the Creditanstalt bank too big to fail in 1931 and the Austrian government had to bail it out. But to no avail. The Creditanstalt failure in the words of the British Treasury official Ralph Hawtrey, "sent a terrible spasm of panic throughout the financial centers of the world.""
It set off defaults, abandonment of the gold standard all across Europe and make the dollar superior Vs most all the currencies in Europe.
Appreciate also that banks in the U.S. that had Euro bonds were wiped out .. thus creating even more deflation.. and making dollars even more scarce.
Save your money.
It's looking like the June policy meeting when the Fed will officially signal it's set to begin tapering asset purchases, according to Jon Hilsenrath. Yesterday's lukewarm jobs reports removed pressure to act right away, but the prerequisite necessary to cut back QE - an improving economy - has been met. [View news story]
Fairway Market IPO Coverage [View article]
Inflation: Making Sure It Doesn't Happen Now [View article]
Flat GDP Not A Concern In Singapore [View article]
Demographics of Singapore are crucial to look at as well. Singaporeans are flat out workers. A huge percent of the population works and they work about 650 hours more per year than US and Japnanese workers do.
They're economy is "maxed out" and won't grow for a long time, assuming they begin to work less hours..enjoy the fruits of their labor. Population is going to be difficult to grow too given the small land size.
Totally agree with title of article.. flat growth should not be concern.. they're GDP per capita is already very high. Per hour worked, it can be improved.
http://seekingalpha.co...
Inflation: Making Sure It Doesn't Happen Now [View article]
I like that your siad "Fight inflation and encourage growth" .. productivity can give you that. Like the Erie Canal. It cost $100 to move a ton of flour from Buffalo to NYC by horse and wagon before they built the Canal. It also took about 32 days. When it was completed in 1825, you could move 1 ton of flour for $5 and be in NYC in just 7 days. That was massively deflationary.. it caused an economic boom Upstate NY and raised standards of living both in the US and in Europe.
Productivity growth is getting tough to get these days. It's an underrated problem the West faces.
Those quotes were sourced.. so I didn't make them up.
The emperor has no clothes we'll have to find out one day.
Martin Armstrong Again Warns On Gold [View article]
That confidence model is a "turning point" model and not necessarily a top or bottom. You got it.
It'll be Europe and the Euro that will "turn" on August 7th.. and likely go down from there over there. The dollar would stay strong..BUT, he thinks that most of the damage will have been done for gold and the crisis in Europe will likely lead to gold moving up again, so we could see a bottom in gold coming into the summer..my guess is on account of deflationary pressures and the Fed talking down QE on account of rising interest rates, which I'm sure are scaring them.
Money flows out of Europe and Japan banks, sovereign bonds and into US stocks and bonds causing too much money in the world to shift to the U.S. leaving the rest of the world facing big trouble.. with civil unrest at a minimum.
U.S. hangs in until October of 2015, then we turn down and face what he thinks will be twice as bad as the last recession. So under this scenario, gold makes it's biggest move from 2015 into 2017 as Europe faces yet another (1931) sovereign debt crisis that blows out governments and more banks.
Global economy makes a shift.
I suppose that's the writing on the wall.
The Great Stagnation In Australia [View article]
I kind of prefer to look at RGDP per hour worked as I think that might be more objective for living standards.
If I'm content with the productivity I get from working 40 hours but in 10 years time, I can get the same production in just 30 hours, thus freeing me up for 10 hours of leisure, I may well work just 30 hours a week. My personal GDP may have stagnated, but my personal GDP per hour is up 33%, my standard of living is up as I have 10 more hours per week of leisure.
What has been occurring in advanced economies over as much as the last 50 years now is declining average annual hours worked per employed person.
So to get a truer measure of livings standards and stagnation for that matter, I like to look at GDP per hour worked.
In Australia, at least out to 2011, 2007 was the peak at just under $47 of GDP per hour worked. In 2011, it was a little less than what it was in 2007. So no gains in productivity in GDP at least per hour worked.
http://bit.ly/16B2mvl
Productivity per hour worked in the advanced economies is definitely facing headwinds. I would not at all be surprised if it begins a long term decline.
China The Impressive: A Personal View [View article]
Wealth of the world undoubtably moving from West to East.
I was there in 2008 and had the same impression then you have now.
Deflation Spell Could Send S&P 500 To 825 In 2015 [View article]
I do believe Goldman is predicting way too high margin and p/e expansion.
I don't know where rates go from here, but I do think we're in for deflation ..and that deflation will couple aggregate demand drops.