A preliminary review by Michigan has found that Detroit has a "serious financial problem," with reporting problems causing cash-flow projections to significantly oscillate on a monthly basis. The review could lead to the declaration of a fiscal emergency and prompt the appointment of an emergency financial manager. A municipal filing for bankruptcy protection, the biggest in U.S. history, could ultimately ensue. (previous) [View news story]
All revenue bills begin in the House of Representatives per the US Constitution; and per House rules the Ways and Means Committee. As a result, any "bailout" would neccessarily be bipartisan.
With over 130,000 New York State residents still without power following Superstorm Sandy, Governor Andrew Cuomo has created a commission to investigate the area's utilities for their handling of the storm and to recommend reform. "It has to be overhauled and you need a new system," Cuomo said. NY power companies include ConEd (ED), CH Energy (CHG) and National Grid (NGG). [View news story]
Just papering over LIPA which Oh By the Way is owned by the State of NY.
New York's AG has filed a civil complaint against JPMorgan Chase (JPM), alleging widespread fraud in the sale of mortgage-backed securities in the run-up to the financial crisis. The suit relates to billions of dollars of subprime securities issued by Bear Stearns' before its takeover by JPM, and is the first brought under the authority of a law enforcement group formed by President Obama in January to pursue alleged wrongdoing during the financial crisis. More cases are expected to follow. Shares -0.8% AH. [View news story]
Until Maxine Waters, Barney Frank, And Chuck Schumer are indicted we will not see either the truth or the end of this.
Lab tests show globs of oil found on two Louisiana beaches after Hurricane Isaac came from the 2010 BP spill - "remarkably similar" in composition and consistency to tar found on state beaches during and immediately after the spill.The Gulf is hardly seeing a repeat of summer 2010, but more Macondo oil likely is buried in other places along the coast. [View news story]
And so.... I live in Newport, RI and as a child we always had tar balls from the Navy Base here. When we have a bad hurricane they reappear.... What is your point?
Wal-Mart (WMT), McDonald's (MCD) and Starbucks (SBUX): Why do you pay your employees so little that most of them are poor? Profit margins at many big U.S. firms are near all-time highs, so there's plenty of room to pay more, but they've made the short-sighted decision not to do so. Henry Blodget thinks if they spent half their profit on better wages, it would help the employees, the companies and the economy. [View news story]
Excuse me isn't that what happened to the Auto Industry and Detroit?
I have been in Paris the past week and a result been reading more local press to supplement my diet of US financial news. Like many, I find the Catch-22 of the current Euro crisis frustrating.
On the train back from Reims Friday night, an idea occurred to me that I think might work, so I thought I would share it. I believe the EU should institute a tax based on the inverse of the conditions that the market is using to increase interest rates on sovereign debt. This tax would inure to the benefit of the EFSF. By way of example, Greece & Italy would pay a very high tax rate, and Germany & France a low one. There would need to be a grace period for arrears of say 3-5 years after which delinquent countries would be expelled from the monetary union. Under such a regime, if well calculated, there would never need to be objection to Euro-Bonds, or the ECB acting as lender of last resort in the same way that all normally constituted central banks act because the bank would have a sound financial base from which to draw (think FDIC).
I think this system allows more national fiscal autonomy while proscribing real limits with real teeth in the enforecement scheme.
I prefer a less draconian form of controlling these fairly toxic instruments. I believe that while CDS should be able to be freely bought and sold, BUT there should be a rule that you can only COLLECT on them against an insurable interest. This would have the effect of limiting the effect of the CDS problem to the size of the insured entity. This is comparable to not being able to short something unless you borrow it first. This would also cause more transparency because sellers and buyers would want to assess market size before entering into transactions.
Abbott: Still A Dividend Growth Stalwart? [View article]
I agree with your point of view "Rats!". I have been accumulating this issue for several years now, but this move changes my mind. I consider that they have put half of their business effectively "AtRisk".
In a strongly worded letter to Switzerland, U.S. Deputy AG James Cole demands - by Tuesday - detailed information on citizens using Swiss bank accounts to dodge taxes, or possibly see Credit Suisse (CS) and 9 other banks face criminal charges. [View news story]
There seems to be something the US government doesn't understand about "sovereign state". The Swiss parliment already rejected changing the law to assent to the US Treasury Department request. We seem to be resorting to bullying where I am quite certain there are myriad other ways to get at the information that they seek assuming the individuals are still US citizens and residents.
The new administration taking power in Spain's Castilla-la Mancha region finds billions in hidden debt and no money to make good on next month's payrolls. The region, which covers about 16% of Spain's area, but just 4% of its population, also has €2B in unpaid invoices to suppliers. [View news story]
Look, none of this is going to get better as long as all of us remain at the "neener, neener, neener" stage. We have to decide it's time to pick up a shovel, a rifle, or whatever and "Get'er done!" Nothing changes if nothing changes!
A preliminary review by Michigan has found that Detroit has a "serious financial problem," with reporting problems causing cash-flow projections to significantly oscillate on a monthly basis. The review could lead to the declaration of a fiscal emergency and prompt the appointment of an emergency financial manager. A municipal filing for bankruptcy protection, the biggest in U.S. history, could ultimately ensue. (previous) [View news story]
With over 130,000 New York State residents still without power following Superstorm Sandy, Governor Andrew Cuomo has created a commission to investigate the area's utilities for their handling of the storm and to recommend reform. "It has to be overhauled and you need a new system," Cuomo said. NY power companies include ConEd (ED), CH Energy (CHG) and National Grid (NGG). [View news story]
New York's AG has filed a civil complaint against JPMorgan Chase (JPM), alleging widespread fraud in the sale of mortgage-backed securities in the run-up to the financial crisis. The suit relates to billions of dollars of subprime securities issued by Bear Stearns' before its takeover by JPM, and is the first brought under the authority of a law enforcement group formed by President Obama in January to pursue alleged wrongdoing during the financial crisis. More cases are expected to follow. Shares -0.8% AH. [View news story]
Lab tests show globs of oil found on two Louisiana beaches after Hurricane Isaac came from the 2010 BP spill - "remarkably similar" in composition and consistency to tar found on state beaches during and immediately after the spill.The Gulf is hardly seeing a repeat of summer 2010, but more Macondo oil likely is buried in other places along the coast. [View news story]
Wal-Mart (WMT), McDonald's (MCD) and Starbucks (SBUX): Why do you pay your employees so little that most of them are poor? Profit margins at many big U.S. firms are near all-time highs, so there's plenty of room to pay more, but they've made the short-sighted decision not to do so. Henry Blodget thinks if they spent half their profit on better wages, it would help the employees, the companies and the economy. [View news story]
The Endgame In Europe [View article]
On the train back from Reims Friday night, an idea occurred to me that I think might work, so I thought I would share it. I believe the EU should institute a tax based on the inverse of the conditions that the market is using to increase interest rates on sovereign debt. This tax would inure to the benefit of the EFSF. By way of example, Greece & Italy would pay a very high tax rate, and Germany & France a low one. There would need to be a grace period for arrears of say 3-5 years after which delinquent countries would be expelled from the monetary union. Under such a regime, if well calculated, there would never need to be objection to Euro-Bonds, or the ECB acting as lender of last resort in the same way that all normally constituted central banks act because the bank would have a sound financial base from which to draw (think FDIC).
I think this system allows more national fiscal autonomy while proscribing real limits with real teeth in the enforecement scheme.
-John
Fixing Wall Street: Abolish Credit Default Swaps [View article]
Abbott: Still A Dividend Growth Stalwart? [View article]
-John
In a strongly worded letter to Switzerland, U.S. Deputy AG James Cole demands - by Tuesday - detailed information on citizens using Swiss bank accounts to dodge taxes, or possibly see Credit Suisse (CS) and 9 other banks face criminal charges. [View news story]
The new administration taking power in Spain's Castilla-la Mancha region finds billions in hidden debt and no money to make good on next month's payrolls. The region, which covers about 16% of Spain's area, but just 4% of its population, also has €2B in unpaid invoices to suppliers. [View news story]