The great interest rate rip off part 1

interestrateripoff · October 26, 2010

Why The Banks MUST NOT Get Away With This

It's now in the mainstream media....

People in this country may be uninformed or misinformed -- but they're not stupid. They'll catch on to the message soon, if they haven't already: There's one deal for average people, but a different, far better deal for the really big and powerful.

We can't go there folks.

There's a limit to the screwing of this sort that the people will take. I have no idea where it is. Neither does anyone else. The Politicians definitely don't; they're tone deaf to this sort of abuse, because most of them haven't bought their own groceries or pumped their own gas in 20 years. We have reported every time there's an election how "Politician X" didn't pay his 24 speeding tickets and as a result his license was suspended - but now he paid them and it's all ok.

These people live in a different world. If you or I don't pay one speeding ticket the next time we're tooling down the road the cop's "robocamera" will pick up our license plate and we'll get treated to the felony stop - that's where four cop cars pull you over and the cop steps out with his gun out, behind his door, and tells you to get the f%#k out of the car and lie on the ground. Then, since you've got a suspended license, you get to spend the night in jail before you see The Judge.

This isn't hyperbole - it happens all the time. Sometimes it's legitimately you trying to be an ass - you tossed the ticket and the warning from the state that your license and plates were suspended.

But sometimes it's not - you didn't get the notice yet, or you send in a check but for the wrong amount. No matter, you get the felony stop treatment.

Here's the problem: If the people get into their head that not only politicians can do this sort of thing and get away with it when it comes to things like traffic tickets, but banks can literally rob the people with predatory lending and then enlist the courts to screw them a second time in unjustly evicting them from their house, there is a point where they will snap.

That point is where people vote from the rooftop.

That's a bad place to see someone cast a ballot.

Our society relies on the general premise that you can walk from the grocery store door to your car, and from your car into your apartment, in reasonable safety. That's part of the unwritten social contract that binds all of us together.

Nobody passed a law to make it thus - those laws were all passed for other reasons (e.g. "no murdering, no raping, no pillaging") - but the general agreement among the population that these laws apply to everyone, and the people who disobey them will be punished, is why you can, in fact, walk from your car to your apartment with a reasonable expectation that you'll get there without any extra holes added to your body.

If this element of reasonable expectation is lost, we have instant madness.

Once the population gets into its head that the very legal code that says you can't steal someone's house by lying about debts in court only applies to them, and not to banks, we're not far from the general population deciding that the rest of the law doesn't apply either - and if the banks aren't going to play it legal and straight neither will they.

Society cannot survive in its present form if that decision is taken by even a tiny percentage of the population. There simply are not enough cops - federal, state, local or otherwise - to enforce the law if the general social contract breaks down.

You want to see the economy shut down? I mean really shut down? All we have to do is see a handful of people lose everything, conclude they have no recourse to the law despite lawlessness by the banks, and then take the critical (and ugly) next step and decide they have nothing left to lose.

Will you go to the mall and shop if this sort of thing starts happening? Nope - and neither will I.

We'll wind up like Mexico, and damn fast too.

No thanks.

There's only one way to prevent this from happening, and that for the law to be actually enforced against these jackals. You filed 102,000 perjured documents? Right over here into the dock you go - you're going to prison - after a public and fair trial, of course (if the jury is full of people who got foreclosed on due to your "errors", well that's just gonna suck, isn't it?) You intentionally concealed fraud in the inducement in the loan? Over here with that other guy. You sold "empty box" MBS to investors, or those that ridiculously violated the claims you made for loan quality? Over there.... "Heh Jack; we're gonna need a bigger holding cell!"

We can't afford to see society's general social contract break - and I don't like the vibe I'm getting from people on this - the people are waking up to what happened - at all.

If Washington will not enforce the law, the States must, and they must do it now.

The sharks are circling.

interestrateripoff · October 27, 2010

http://www.telegraph.co.uk/finance/economics/8088964/Interest-rates-set-to-rise-as-economy-recovers.html

Growth over the past six months reached 2 per cent, the fastest pace of expansion over two consecutive quarters since 2000, according to the Office for National Statistics.

The economy received a further significant boost when Standard & Poor's, the ratings agency, revised its outlook on Britain from negative to stable and confirmed the country's AAA credit rating

The Chancellor welcomed both as a "vote of confidence" in the Coalition's economic policies in the week following the Comprehensive Spending Review. Economists warned that the good news could be tempered by interest rates rising earlier than expected.

Andrew Sentance, a member of the Bank of England's monetary policy committee, said he was in favour of lifting interest rates.

"There is a bit of a mismatch between what's happening with inflation and growth, which we have heard about today, and the level of interest rates," he said.

"I am in favour of gradually moving interest rates up from their very low level which I think can be done without disrupting business or consumer confidence."

Interest rates have been at historically low levels since the credit crisis took hold, with the Bank of England keeping rates at 0.5 per cent since March last year. It had been expected there would be little change before the end of next year, but on the back of yesterday's strong growth figures some traders were predicting two rate rises before then, with a base rate of at least 1 per cent by the end of 2011.

Considering all the major economies are at low rates isn't there a risk with increasing interest rates of hot money flowing into the UK for the higher return which will cause even higher inflation?

If there isn't an inflow of cash you then run the risk of increasing defaults amongst borrowers.

Still I'm sure the experts at the BoE know what they are doing, after all they do have an amazing track record.

interestrateripoff · October 27, 2010

http://uk.reuters.com/article/idUKTRE69Q17N20101027

Britain's fledgling economic recovery is not fuelling a surge in inflation, Bank of England policymaker Adam Posen said in a newspaper interview published on Wednesday.

"If there was going to be a recovery that either was inflationary or otherwise meaningfully different from that established pattern, it should have been evident by now," Posen told the Irish News.

"We've fended off a financial crisis, currency and interest rates are stable and there is price stability because, while we overshot a bit on our inflation target, let's be realistic, 3.5 percent is a far cry from double-digit inflation."

Posen, who was the sole voice on the nine-strong Monetary Policy Committee calling for a 50 billion pound expansion of the Bank's quantitative easing scheme this month, also said the financial sector was not "fixed yet."

Well lets be honest 3.5% inflation could be a bit of a problem if you are already over leveraged and over extended. Numerically it may not be double digit but if money is tight 3.5% inflation could be a killer and send many over the edge. Certainly 3.5% inflation and savings rate below that certainly doesn't help savers.

interestrateripoff · October 27, 2010

Cameron defiant over housing benefit cap

PM backs controversial policy despite fears it could drive 200,000 people out of cities
535 comments

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[*] UBS investment banking suffers loss

interestrateripoff · October 27, 2010

Steady UK recovery and upgrade boost markets

Sean O'Grady: Economy confounds sceptics and City forecasters again by registering another surprisingly strong growth figure.

James Moore: If the CBI wants a union crackdown, firefighters may provoke one

Outlook You may not have heard of AssetCo, a small, but growing British company that specialises in fighting fires.

The brains behind the smartphones

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interestrateripoff · October 27, 2010

FTSE falls sharply as ambitions cool on U.S. QE

LONDON (Reuters) - Britain's top shares posted their biggest one-day losses in over two months on Wednesday, hit by market concerns that further quantitative easing measures in the United States might be less aggressive than expected. | Video

Mixed U.S. data confirm slow economic growth path

WASHINGTON (Reuters) - Demand for a range of long-lasting U.S. manufactured goods unexpectedly fell last month and a gauge of business spending plans also dropped, underscoring the economic recovery's tepid pace.

7:33pm BST

Virgin Media boosted by record user spend

LONDON (Reuters) - Virgin Media drew record spending from customers in the third quarter in the face of a marketing onslaught by rivals which held back the number of new users to the cable operator's services.

2:52pm BST

French G20 to seek reform of global monetary system

PARIS (Reuters) - France will seek reform of the global monetary system during its upcoming G20 presidency to protect emerging economies and to diversify international reserves, Economy Minister Christine Lagarde said on Wednesday.

G20 5:28pm BST

Banks face £5 billion protection insurance hit

LONDON (Reuters) - The country's banks could have to pay out at much as 5 billion pounds to compensate customers who accuse them of mis-selling insurance policies after a U.S. rival warned it faces a big hit.

3:09pm BST

Deutsche's bankers earning more than Goldman's

FRANKFURT (Reuters) - Deutsche Bank's investment bankers earned an average 285,300 euros ($398,100) in the first nine months of 2010, more than the $370,700 (234,917.62 pounds) Goldman Sachs bankers pocketed.

5:08pm BST

ECB's Stark talks up recovery

WIESBADEN, Germany (Reuters) - European Central Bank policymaker Juergen Stark talked up improvements in the euro zone's economy and lending markets on Wednesday, as the bank restarted the slow process of removing its crisis support.

5:24pm BST

Smoker cutbacks hurt cigarette maker BAT

LONDON (Reuters) - British American Tobacco, the world's No 2 cigarette maker, posted a bigger than expected 3 percent fall in underlying nine-month volumes and said the recession's impact on smokers showed no sign of abating.

12:12pm BST

Recovery is not inflationary - Bank's Posen

LONDON (Reuters) - Britain's fledgling economic recovery is not fuelling a surge in inflation, Bank of England policymaker Adam Posen said in a newspaper interview published on Wednesday.

11:51am BST

BA boss criticises U.S. security demands

LONDON (Reuters) - The chairman of British Airways has criticised airport checks as "completely redundant" and said Britain should stop "kowtowing" to U.S. demands for increased security, the Financial Times reported on Wednesday.

Government to give extra cash to Post Office

LONDON (Reuters) - The government said on Wednesday it would provide 1.3 billion pounds of extra funding to the Post Office and press ahead with plans to sell up to 90 percent of the state-owned letter delivery business Royal Mail.

interestrateripoff · October 27, 2010

27 October 2010 Last updated at 17:57

Airport security change signalled

Transport Secretary Philip Hammond signals his willingness to change the regulations on security checks at UK airports.

All firms told to offer pensions

All UK firms will have to have a company pension scheme or enrol staff into the new National Employment Savings Trust by 2016.

Cameron 'sticking to benefit cut'

David Cameron insists the government is sticking to planned housing benefit cuts after Labour claims the policy is in disarray.
Post Office to get £1.3bn funding

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German unemployment dips below 3m
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Greek economy 'to shrink by 3%'
Virgin speeds up UK cable network
EMI case banker 'can't remember'
Licences for oil and gas cut back
EU split over treaty change plan
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French MPs adopt pension reform

Worst way to bank

Bank of England governor speaks out on bank rules

interestrateripoff · October 27, 2010

http://www.telegraph.co.uk/finance/economics/8089832/We-cant-predict-recession-says-Bank-of-England-deputy-governor-Charles-Bean.html

The Bank of England can not predict major recessions with any “precision”, the deputy Governor has admitted.

In frank comments to the Royal Statistical Society, Charlie Bean also conceded that the Bank failed to foresee the “Great Contraction” of 2008 and 2009 – although he stressed that it was not alone. “Almost all forecasters were in the same boat,” he said.

The only recessions that are “broadly predictable”, he claimed, are those that “are deliberately policy-induced in order to squeeze inflation down”. Even then, however, “it may still be difficult to get the magnitude and timing right, and there will always be other unexpected events that perturb the path of the economy”.

In a damning comment on the models used by central bankers and other economic forecasters, he stressed: “The moral from this is that one should not expect to be able to predict the timing and scale of these sorts of events with any precision.” The best policymakers can hope is to “be more alert to the vulnerabilities” building up to a crisis.

“It is somewhat analogous to seismologists trying to predict earthquakes along a fault line,” Mr Bean said. “It is impossible to predict the day and magnitude of a shock with any precision, but it may be possible to say something about the likelihood of an earthquake occurring within a given period from seismic measurements and indicators of latent stress.”

His comments suggest that countries can not ever prepare properly for recessions because the depth and timing will always take forecasters by surprise. For “downturns associated with financial or banking crises... One would need to be endowed with perfect foresight to have been able to predict how the financial crisis would unfold”, he added.

Mr Bean argued that one of the problems is the available data is limited in its use and, therefore, forecasts of recessionary behaviour will not be accurate if the information is applied correctly. Mr Bean claimed: “Deviations of outturns from central forecasts should be unpredictable if those forecasters are using the information that is available to them efficiently.

“While it was predictable that the availability of credit would tighten as risk aversion rose and financial institutions rushed to de-leverage their balance sheets, it was far harder to know by how much.”

The UK economy shrank by 6.5pc from peak to trough during the recession, which lastest 18 months from the second quarter of 2008, the deepest contraction since the 1930s. In August 2008, the Bank put the chances of contracting more than 1.5pc at just “1 in 20”, Mr Bean admitted.

“It is a fair bet that, if we had, then we would have put the chances of a contraction as large as the ONS’s current estimate as being virtually negligible,” he added.

You cannot accurately predicted the future from past data, no matter what you do the variables will always be different and yet economics is infected with these mathematical charlatans claiming they can predict the future.

Policy makers simply chose to ignore the flashing warning lights because they didn't want to stop the party, the politicians didn't want to stop the party everyone was too busy troughing to care.

House price inflation was conveniently removed from the inflation figures therefore the models didn't have to pick up the warning signs because the bubble was in an area where it wasn't going to be a policy problem. The problem was no one really gave a crap.

“William McChesney Martin Jr. vividly described the Fed's role as to "take away the punch bowl." In essence, the Fed was supposed to be the "adult chaperone" at an economic party that was likely to get out of hand. Thus, the Fed was supposed to allow, even induce, if necessary, the occasional recession to cleanse the excesses of the economy”

interestrateripoff · October 27, 2010

with almost all forecasters.

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interestrateripoff · October 27, 2010

http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100008351/the-feds-impending-blunder/

OK, I’ve calmed down after a week of Jamon Iberico and Rioja in Granada’s Albaycin, so I will try to be polite about the US Federal Reserve. Try, that is, not necessarily succeed.

For a good insight into the thinking of the New Keynesian priesthood that rules our money and our lives, it is worth reading “QE2: How Much is Needed?” by Jan Hatzius from Goldman Sachs.

His argument – crudely – is that US interest rates at zero are 7pc too high given the Taylor Rule on output gaps, et cetera (not that Professor Taylor himself happens to agree, but let us not quibble).

Since rates cannot be minus 7pc, the Fed would need to launch a $4 trillion blitz of fresh bond purchases to fully compensate, such is the mess that America’s leadership has inflicted on the Great Republic. I have over-simplified: Goldman Sachs relies on a “policy gap” concept, which factors in fiscal tightening et al.

This would push the Fed balance sheet to $6.3 trillion, above the $5 trillion pencilled in as the upper limit during the Great Crash.

Mr Hatzius is not saying the Fed will do this, or should do this. His forecast is that the Fed will start off with baby steps of $500bn spread over six months or so, rising over time to meet the bank’s “dual mandate of low inflation and sustainable employment”.

(Actually the Fed’s mandate is “to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.” Stable prices are not the same as low inflation. It takes Ben Bernanke’s maniacal obsession with the doctrine of inflation targeting to twist this into a mandate for printing large sums of money at a time when the Dallas Fed’s `trimmed mean’ measure of annual inflation has jumped from 0.5pc in May, to 0.8pc in July, and 1.5pc in August. But again, let us not quibble).

Mr Hatzius said the Fed sees “tail-risks” in using QE to the full, but may nevertheless do another $2 trillion in the end.

I have no doubt that this report reflects thinking at the Fed Board in Washington, and among Bernanke allies at the San Francisco Fed and Boston Fed – though not of course at the Dallas Fed where Richard Fisher confesses: “In my darkest moments I have begun to wonder if the monetary accommodation we have already engineered might even be working in the wrong places.”

......

Having argued during the boom that it was not the business of central banks to stop asset bubbles – and specifically that any fall-out could “safely” be cleaned up later – Bernanke now seems to determined to validate this absurd doctrine, bending all the sinews of the US economic and financial system to this end. One error leads to the next.

In a sense QE has worked all too well. M3 has stabilized. The M2 gauge used by the Fed – which was still contracting in May – has been growing annual rate of 8.4pc over the four weeks to mid-October. The pace has been accelerating for months.

OK, 8.4pc is not Weimar, but it is not imminent deflation either.

So interest rates are too high, but they can't be negative so the US need to print another $4tr!!!!

I realize this is a GS employee being quoted but it's clear that the recovery to help the bankers isn't working and they need more cash.

interestrateripoff · October 27, 2010

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interestrateripoff · October 27, 2010

Now Zee Cat Is Scampering.....

... well out of the bag, clawing people's legs.....
Very interesting hearing. But the most-interesting part of it is right here....

The largest and most complex harm that may exist with the loans in default or foreclosure today is that
the paperwork for the loans was not transferred correctly.
I emphasize that what constitutes a correct transfer is a gray area; we need more direction from courts and legislatures on this subject.
But there are plausible legal claims that the transfers of the notes and mortgages were not effective to give the trust full enforcement rights.

Uh, yep. That's the short version of where the problem lies.....

And it only gets better....

The implications of problems with transfer are serious.
If the trust does not have the loan, homeowners may have been making payments to the wrong party.
If
the trust does not have the note or mortgage, it may not have standing to foreclose or legal authority to negotiate a loan modification.
To the extent that these transfers are being completed retroactively, it raises issues about honesty in creating and dating the assignments/transfers and about what parties can do, if anything, if an entity in the securitization chain, such as Lehman Brothers or New Century, is no longer in existence.
Moreover, retroactive transfers may violate the terms of the trust, which often prohibit the addition of new assets, or may cause the trust to lose its REMIC status, a favorable treatment under the Internal Revenue Code.
Chain of title problems have the potential to expose the banks to investor lawsuits and to hinder their legal authority to foreclose or even to do loss mitigation.

And you thought that was it? Oh no....

Another type of lawsuit risk is that consumers are able to sue the current holder of their note for violations that occurred at origination. Normally, these complaints fail because the holder of the note is thought to be a "holder in due course," a person that receives protection from most of the claims that someone could bring against the originator of the note
. However, if the notes do not meet the requirements of negotiable instruments, there cannot be a holder in due course. The person with the note merely is the possessor "bearer paper," and can be sued for all wrongs associated with that note contract.

Now do you understand why nobody wants to come forward with the paper? Well gee, what if the Trusts or worse servicers wind up with successor liability for the wrongs committed by the LENDERS? (The trustees tend not to have much money - the servicers, on the other hand, are all the big banks.... oi!)

Finally, I want to share with the Panel that the lawyers that
I have met over years of my research on mortgage servicing—both creditor lawyers and debtor lawyers—have nearly universally expressed that they believe a very large number (perhaps virtually all) securitized loans made in the boom period in the mid-2000s contain serious paperwork flaws, did not meet underwriting or other requirements of the trust, and have not been serviced properly as to default and foreclosure.

Oh, it's not "just some paperwork" eh? Yeah.

The second type of lawsuit that seems certain to follow the exposure of the flawed foreclosure procedure is a claim by investors that problems at loan origination, including a lack of paperwork to support a valid foreclosure, or mortgage servicing mishaps have increased their losses.
These suits most obviously will seek to force the banks to "buy back" or "repurchase" loans that were improperly placed into a particular trust for securitization or were improperly originated. Investors could also argue for money damages for lost revenue stream or breach of fiduciary duty by the trust or the servicer to exercise good judgment in favor of in investors’ interests. These suits could be incredibly expensive for banks, requiring the payments of large claims to make investors whole and to satisfy the plaintiffs’ attorneys who will bring such cases.

Yep. And those suits are just getting started.

But America does not have to continue in a "crisis." We do not have to tolerate abuse of the legal system, systematic errors, bloated fees, and chaos in the housing and financial sector.

THANK YOU.

Now, let's see the law come in and do the right thing.

We're well beyond the point where this should have occurred, but all good movements start with one step.

The story is going to run and run.

Once the big class action lawsuits start then it will all really start to kick off.

interestrateripoff · October 27, 2010

I Get Scared When.....

PIMpCO and I agree on something....

The Fed’s announcement of a renewed commitment to Quantitative Easing has been well telegraphed and the market’s reaction is likely to be subdued.

We are in a “liquidity trap,” where interest rates or trillions in asset purchases may will not stimulate borrowing or lending because consumer demand is just not there.

The Fed’s announcement will likely signify the end of a great 30-year bull market in bonds and the necessity for bond managers and, yes, equity managers to adjust to a new environment.

Fixed it for 'ya Bill.

He goes on to opine....

They say a country gets the politicians it deserves or perhaps it deserves the politicians it gets. Whatever the order, America is next in line, and as we go to the polls in a few short days it’s incumbent upon a sleepy and befuddled electorate to at least ask ourselves, “What’s going on here?” Democrat or Republican, Elephant or Donkey, nothing much ever seems to change. Each party has shown it can add hundreds of billions of dollars to the national debt with little to show for it or move our military from one country to the next chasing phantoms instead of focusing on more serious problems back home. This isn’t a choice between chocolate and vanilla folks, it’s all rocky road: a few marshmallows to get you excited before the election, but with a lot of nuts to ruin the aftermath.

Hoh hoh hoh. Guns, Gays and God while ignoring the rest. Someone been reading Tickers? Or just another man who can evaluate reality and tell the truth? It doesn't really matter.... the effect is the same - Bill has woken up.

Was it relevant in 2004 that John Kerry was or was not an admirable “swift boat” commander? Will the absence of a mosque within several hundred yards of Ground Zero solve our deficit crisis? Is Christine O’Donnell really a witch? Did Meg Whitman employ an illegal maid? Who cares! We are being conned, folks; Democrats and Republicans alike. What have you really heard from either party that addresses America’s future instead of its prurient overnight fascination with scandal? Shame on them and of course, shame on us. We’re getting what we deserve.

Yep. Guns, Gays God - how we are divided. The game is to lie, cheat, obscure and play games, while coyly directing you around the corner where you will be assaulted by The Pigmen.

The only problem is that instead of shears, this time they got out the airgun and started whacking you in the temple with it. Oops.

More important will be the answer to the long-term question of “will it work?” and perhaps its associated twin “will it create a bond market bubble?”

I answer that: No, and it already did. Welcome to Hell Bernanke.

The Fed’s second round of QE, therefore, more closely resembles an attempted hypodermic straight to the economy’s heart than its mood elevator counterpart of 2009. If QEII cannot reflate capital markets, if it can’t produce 2% inflation and an assumed reduction of unemployment rates back towards historical levels, then it will be a long, painful slog back to prosperity.

Actually, it's worse than that.

It won't reflate capital markets because capital markets rely, ultimately, on capital formation. The heroin high of credit expansion is like all bouts of inflation - it feels great when you get the first shot, but the hangover sucks, and if you keep doing it to dull the pain, you eventually die.

Capital formation has been murdered by BendOver Bernanke. It cannot be otherwise. Below-market rates can be maintained for a long time but as others have observed while you can control how much liquidity is in the system you cannot control with any sort of reliability where it goes.

The longer-term impact, however, is extraordinarily damaging. We've got major trouble here in this regard, as trashing the savings of Americans - individually, in their pension funds and in their insurance-related contracts (such as annuities) are not trivial issues. These reductions in spending capacity over time are real and permanently, and what's worse, so is the destruction of the formation of new capital and thus new businesses.

We are, as even some Fed Governors now publically admit, in a “liquidity trap,” where interest rates or trillions in QEII asset purchases may not stimulate borrowing

or

lending because consumer demand is just not there. Escaping from a liquidity trap may be impossible, much like light trapped in a black hole.

No it's not. To escape a liquidity trap you must cause those who are hiding blown assets through your monetary games to take their losses - that is, you must force those losses into the open. This is how you achieve balance. The ugly reality is that doing so causes those who are bankrupt but have been hiding it into the open, and they blow up. This produces a short-term dislocation - and that dislocation will hurt. But it is the only choice in moving forward. Japan, despite 20 years of trying to avoid it, has not succeeded and thus remains trapped.

Now, however, with growth in doubt, it seems that the Fed has taken Charles Ponzi one step further. Instead of simply paying for maturing debt with receipts from financial sector creditors – banks, insurance companies, surplus reserve nations and investment managers, to name the most significant – the Fed has joined the party itself. Rather than orchestrating the game from on high, it has jumped into the pond with the other swimmers. One and one-half trillion in checks were written in 2009, and trillions more lie ahead.

Right. Note that $1.5 trillion is approximately the deficit spend by the government. The problem? Have a look at Corn, Wheat, Oats, Soy or Rice of late? That's cost-push on the input side and it is coming through into prices. It cannot be otherwise. Yet with global wage arbitrate and an unwillingness to address the intentional imbalances created by China (and a few other nations), along with allowing our nation to export more than 20 million solid manufacturing jobs to those nations, we now have a situation where cost of living is going up (whether The Fed and the CPI reflect it or not) while wages go down.

This inherently means less discretionary spending and compressing margins. That, in turn, means that ultimately The Ponzi will be forced into the open and detonate, no matter how hard they try to prevent it. Again, witness Japan, which hasn't managed to get back to it's old historic market highs - despite 20 years of trying.

Still, as I’ve indicated, a Sammy scheme is temporarily, but not ultimately, a bondholder’s friend. It raises bond prices to create the illusion of high annual returns, but ultimately it reaches a dead-end where those prices can no longer go up.

Yep. And when the bond market reverses it can get really ugly, as the change in coupon gets compounded by duration. Duration is a mortal enemy when this dynamic asserts itself.

If a country gets the politicians it deserves, then the same can be said of an investor – you’re gonna get what you deserve. Vote No to Republican and Democratic turkeys on Tuesday and Yes to PIMCO on Wednesday. We hope to be your global investment authority for a new era of “SAFE spread” with lower interest rate duration and price risk, and still reasonably high potential returns. For us, and hopefully you, Turkey Day may have to be postponed indefinitely.

We'll see on that latter assertion Bill.

The fact remains that you, and everyone else, have had rather unrealistic expectations. I think you may still have them. If we are destined to go through Kondratief Winter, and I believe we are, as winter inevitably follows fall (whether you care to admit it or not), all who have predicated their lives on a belief that compound earnings beyond the growth in population and productivity can be maintained in perpetuity are in for an ugly surprise.

The demand for borrowing, even govts are getting wary of borrowing even more money.

The expansion appears over, unless someone finds a magic bean to create growth the economies in the West are going to be in serious trouble.

interestrateripoff · October 27, 2010

Liquidity Traps, Falling Velocity, Commodity Hoarding, and Bernanke's Misguided Tinkering

John Hussman has an interesting post this week on the misguided policies of the Bernanke Fed and how quantitative easing promotes commodity speculation and hoarding but does nothing for the real economy. Please consider Bernanke Leaps into a Liquidity Trap

The belief that an increase in the money supply will result in an increase in GDP relies on the assumption that velocity will not decline in proportion to the increase in money. Unfortunately for the proponents of "quantitative easing," this assumption fails spectacularly in the data - both in the U.S. and internationally - particularly at zero interest rates.

How to spot a liquidity trap

The chart below plots the velocity of the U.S. monetary base against interest rates since 1947.

Few theoretical relationships in economics hold quite this well. Recall that a Keynesian liquidity trap occurs at the point when interest rates become so low that cash balances are passively held regardless of their size. The relationship between interest rates and velocity therefore goes flat at low interest rates, since increases in the money stock simply produce a proportional decline in velocity, without requiring any further decline in yields. Notice the cluster of observations where interest rates are zero? Those are the most recent data points.

One might argue that while short-term interest rates are essentially zero, long-term interest rates are not, which might leave some room for a "Hicksian" effect from QE - that is, a boost to investment and economic activity in response to a further decline in long-term interest rates. The problem here is that longer-term interest rates, in an expectations sense, are already essentially at zero. The remaining yield on longer-term bonds is a risk premium that is commensurate with U.S. interest rate volatility (Japanese risk premiums are lower, but they also have nearly zero interest rate variability). So QE at this point represents little but an effort to drive risk premiums to levels that are inadequate to compensate investors for risk. This is unlikely to go well. Moreover, as noted below, the precise level of long-term interest rates is not the main constraint on borrowing here. The key issues are the rational desire to reduce debt loads, and the inadequacy of profitable investment opportunities in an economy flooded with excess capacity.

One of the most fascinating aspects of the current debate about monetary policy is the belief that changes in the money stock are tightly related either to GDP growth or inflation at all. Look at the historical data, and you will find no evidence of it.

You can see why monetary base manipulations have so little effect on GDP by examining U.S. data since 1947. Expand the quantity of base money, and it turns out that velocity falls in nearly direct proportion. The cluster of points at the bottom right reflect the most recent data.

Just to drive the point home, the chart below presents the same historical relationship in Japanese data over the past two decades. One wonders why anyone expects quantitative easing in the U.S. to be any less futile than it was in Japan.

Simply put, monetary policy is far less effective in affecting real (or even nominal) economic activity than investors seem to believe. The main effect of a change in the monetary base is to change monetary velocity and short term interest rates. Once short term interest rates drop to zero, further expansions in base money simply induce a proportional collapse in velocity.

Look at the price of gold since 1975. When real interest rates have been negative (even simply measured as the 3-month Treasury bill yield minus trailing annual CPI inflation), gold prices have appreciated at a 20.7% annual rate. In contrast, when real interest rates have been positive, gold has appreciated at just 2.1% annually. The tendency toward commodity hoarding is particularly strong when economic conditions are very weak and desirable options for real investment are not available. When real interest rates have been negative and the Purchasing Managers Index has been below 50, the XAU gold index has appreciated at an 85.7% annual rate, compared with a rate of just 0.1% when neither has been true. Despite these tendencies, investors should be aware that the volatility of gold stocks can often be intolerable, so finer methods of analysis are also essential.

Quantitative easing promises to have little effect except to provoke commodity hoarding, a decline in bond yields to levels that reflect nothing but risk premiums for maturity risk, and an expansion in stock valuations to levels that have rarely been sustained for long (the current Shiller P/E of 22 for the S&P 500 has typically been followed by 5-10 year total returns below 5% annually). The Fed is not helping the economy - it is encouraging a bubble in risky assets, and an increasingly unstable one at that. The Fed has now placed itself in the position where small changes in its announced policy could have disastrous effects on a whole range of financial markets. This is not sound economic thinking but misguided tinkering with the stability of the economy.

That is a decent sized snip, but I assure you there is much more in the article to merit a complete read.

Commodity Hoarding

Commodity hoarding and speculation and credit growth is rampant in China, as noted in Massive Inflation in China, US Inflation Nonexistent

I also happen to have had an email exchange with someone in the apparel industry regarding cotton over the past few days.

"AI" Writes ...

Mish,

As you know I work in the apparel industry. One item that the media is not discussing is the massive price increases for clothing that is coming in 2011. Retailers are beginning to feel the pricing pain as we speak. For now they and their vendors are absorbing through modestly lower margins. By early spring product shortages will become an issue. As we move into July and August we WILL see pricing for many items increase by 20% or more because of cotton shortages and hoarding in China.

I know of one "factory" that made a cash purchase of a substantial amount of "cotton"/piece goods. To their surprise only 20% was delivered along with a refund for the balance. The supplier said they plan to hold the goods longer as prices continue to increase rapidly.

"AI"

Definition of "Factory"

Since "Factory" was in quotes, I had to ask exactly what that meant. "AI" responds ...

A factory can be an actual production facility or it could be a sourcing agent who outsources production to various facilities. The term is often used interchangeably so I felt the quotes were needed. The same can be said for cotton as it is sometimes used when people are referring to fabric/piece goods. The hoarding example I provided was for actual fabric.

Apparel Price Increase Looms?

"AI" thinks a huge price increase looms. I am not so sure. Prices can only rise if consumers are willing to pay that price. Are they? For how long?

As for hoarding, there is always the risk of a price collapse. Given the fragile state of the economy, a sudden collapse in the price of cotton or commodities cannot be ruled out.

More at the link.

Insanity: doing the same thing over and over again and expecting different results.

Albert Einstein.

interestrateripoff · October 28, 2010

http://www.telegraph.co.uk/finance/comment/damianreece/8091221/Warnings-of-recession-You-could-just-have-read-the-papers-Mr-Bean.html

The answer is no. There was already plenty of evidence in early 2008 to show we were headed for recession. Bean, and his Monetary Policy Committee colleagues, could have read the newspapers more closely too. That might have helped.

But the MPC, and many others, ignored the warnings or insisted on interpreting the evidence through rose tinted spectacles. Put simply they were not sceptical enough of the received wisdom emanating from Gordon Brown's Treasury that pre-crisis Britain had abolished the business cycle. Brown's statement of March 2001 that: "Mr Deputy Speaker we will not return to boom and bust," still echoes horribly. It was a common theme of his from 1997 onwards.

But it was clear to newspapers such as this one in early 2008 that we were headed for recession and rates had to be cut.

For instance on June 6, 2008, I wrote: "The doves among you should be watching M4 money supply growth, which is already falling quite sharply, and the purchasing managers' index for signs of weakness over the next couple of months. I'll plump for an August rate cut to deliver some relief - exactly a year from the onset of the credit crunch.''

Nothing happened. On July 8, 2008, after dire manufacturing figures, I said: "It's clear to me we're headed for recession and as soon as that fact dawns on the MPC it should cut rates without delay.'' Again nothing. Further warnings followed but it wasn't until October 8 the MPC started cutting rates. Too little, too late.

Although I saw that we were heading towards a recession in 2007, but still at least someone in the press is calling Mr Bean into question.

Next we just need them to work out the current mess is partly due to the fact the BoE deliberately created a consumer boom in 2003 to avoid recession.

interestrateripoff · October 28, 2010

http://www.telegraph.co.uk/finance/economics/8091023/Political-upheaval-rocks-eurozone-debt-markets.html

Hopes of a budget deal in Portugal collapsed after marathon talks between the minority government of socialist premier Jose Socrates and conservative leaders ended in acrimony.

Finance minister Fernando Texeira dos Santos said failure to agree on budget cuts will "plunge the country into a very deep financial crisis".

Meanwhile, Ireland has announced fiscal retrenchement of €15bn over the next four years, twice the original plan. It is already cutting public wages by 13pc.

John Fitzgerald from Ireland’s Economic and Social Research Institute said there is a risk that austerity tips the economy into a downward spiral, comparing it to an overdose of "chemotherapy" that does more harm than good.

Finance minister Brian Lenihan said the country had no choice. "The cost of borrowing is high and rising, and if we do not act soon to live within our means, people may stop lending to us. We will not fool the markets for an instant if we seek to defer any longer what evidently needs to be done now. The Irish people will have to accept cuts in public expenditures and higher taxes," he said.

In Greece, yields on 10-year bonds surged 67 points to 10.26pc, the biggest jump since the turmoil in June. The sell-off came after permier George Papandreou warned that the country was still in danger, and threatened to call early elections.

Finance minister George Papaconstaninou refused to rule out a request for an extension of the repayment period for the EU rescue package and confirmed that tax revenues are falling short. "We are deluding ourselves as a country in thinking we have a tax system. We don’t," he said.

He confirmed leaks that the budget deficit for 2009 would be "above 15pc" of GDP, higher than the last estimate of 13.8pc and five time the original claim of 3pc by the previous government.

.............

As members of the eurozone, Portugal, Ireland, Greece cannot devalue or resort to monetary stimulus offset fiscal tightening. They must each pursue a policy of "internal devaluation", meaning deflation within the currency bloc to regain lost competitiveness.

This is risky for economies with total debt levels above 300pc of GDP, as is the case in Ireland and Portugal. Ireland’s nominal GDP has already contracted by over 20pc of GDP, yet the debt burden has not diminished.

The test will be whether these countries can generate enough exports to trade their way out of crisis over coming years, or remain trapped in slump with rising political tensions.

Still I'm just relieved it's all contained and not spiralling out of control.

Clearly the ECB should just print money to fix the PIIGS problems, at least Germany is growing...

interestrateripoff · October 28, 2010

http://www.guardian.co.uk/business/2010/oct/28/uk-boardroo-pay-soars

Britain's bosses have been accused of ignoring economic reality after boardroom pay leapt by 55% over the last year.

FTSE 100 directors saw their total earnings soar in the 12 months to June, thanks to sharp rises in bonuses and performance-related pay. The average FTSE 100 chief executive now earns £4.9m a year, or almost 200 times the average wage.

Unions reacted angrily to the report today. "Don't they know that this is meant to be austerity Britain?" said TUC general secretary Brendan Barber.

"These mega-pay rises blow away any claim that we are all in this together. While the poor and those on middle incomes lose out from cuts and pay squeezes, top directors continue to take home telephone number salaries without being overly troubled by tax," Barber added.

He called on shareholders and the government to get a tighter grip on executive pay, at a time when ordinary workers have seen their pay kept in check by the economic downturn.

Incomes Data Services said bonuses paid to directors of FTSE 100 companies increased by 34%, while basic pay rose by 3.6%. The amount of money waiting to be disgorged from long-term incentive schemes soared by 73%, to a total of £259m, and share option gains leapt by 90%.

The FTSE 100 rose by less than a fifth over the same period.

Huge loss / huge profit makes no difference for the bosses the big pay checks just keep coming.

To get the best you have to pay it as no one else could possible do what these executives do.

Workers just don't seem to understand this.

interestrateripoff · October 28, 2010

Breaking news

UK executives defy age of austerity as pay leaps 55%

The average FTSE 100 chief executive now earns £4.9m a year, or almost 200 times the average wage
553 comments
- 'Bonus buyouts' signal return of banks' confidence – and wealth
- More on pay and bonuses
[*] UK house prices fall faster than expected – Nationwide

Survey comes as member of Bank of England's rate-setting MPC warns spending cuts will hit economic growth

181 comments
- Poll: Are falling house prices here for the long term?
[*] GSK whistleblower wins $96m payout

Whistleblower who exposed manufacturing problems at Glaxo plant receives $96m after eight-year legal fight
- Cheryl Eckard's lawsuit in full (pdf)
- Nils Pratley: Money well spent
[*] Retailers remain optimistic for Christmas

CBI survey shows most retailers believed sales increased in October, but analysts were taking the findings 'with a pinch of salt'

New City of London shopping centre opens for business ... and pleasure

Its developers hope One New Change, nicknamed the 'stealth building', could transform the City into a seven-day social destination
- London's rising skyline
[*] Shell profits rise by 18%

Oil company's quarterly earnings hit $3.5bn, exceeding expectations, as new oil sands facility comes on line

1 comment

[*] RBS insurance business set for flotation

Royal Bank of Scotland is pressing on with the disposal of its insurance arm, which includes Churchill, Direct Line and Green Flag

[*] More business news

[*] Wormsley denies giving EMI bid details to Hands
- Citi banker 'cannot remember' phone calls
[*] Osborne declares UK back on track

147 comments

[*] BA boss gets 12% rise and £1.65m bonus

interestrateripoff · October 28, 2010

'Nation of internet shopkeepers' pumps £100bn into the economy

Nick Clark: The internet is worth £100bn to the British economy, making a larger contribution than transport or utilities, as the country becomes 'a nation of digital shopkeepers'.

James Moore: Is this a ray of light in the appalling mess of the British pension system?

Outlook Auto-enrolment into company pension schemes is here. It is a pension reform idea with a dab more credibility than the carefully leaked, headline-grabbing figure of £140 for the basic state offering.

Jeremy Leggett: Solar storm coming: the battle for the UK energy industry

Last week's Spending Review was just a skirmish in an industry 'civil war', the Solarcentury founder tells Sarah Arnott.

The brains behind the smartphones
Webcast: The importance of writing a will
Back on: The battle royale among stock exchanges
It's food, drink and 'cleantech' that will get the UK back to work
Corporate world angry over plans to create a new super-watchdog Boris opposes PM over housing benefit cut

Michael Savage: Boris Johnson has intervened in startling fashion in the coalition Government's controversial cuts to housing benefit, incensing Downing Street by suggesting that the reforms could cause "Kosovo-style social cleansing" of the poor from London.
- Housing benefit reform strains Coalition unity
- Nick Clegg invites regional growth fund bids

interestrateripoff · October 28, 2010

28 October 2010 Last updated at 19:33

Nissan to recall 2.1 million cars

Nissan recalls 2.1 million vehicles worldwide because of an ignition problem, including nearly 84,000 K12 Micras built in the UK.

Home prices 'dip 0.7% in October'

House prices dropped in October compared with the previous month as the property market sees an autumn fall, the Nationwide says.

US foreclosure crisis spreading

New figures on US home repossessions show the crisis has spread across a wider area of the country since the summer.
Fresh BBC strikes are announced

BBC journalists are to strike after voting to reject the corporation's latest proposals to overhaul the staff pension scheme.
UK net economy 'worth billions'

A study into how much the internet contributes to the UK economy says it is larger than the construction, transport and utility sectors.
Chrysler saved by 'narrow margin'
UK retail sales growth 'slowing'
Motorola phones return to profit
Exxon profits from high oil price
Shell profits up in third quarter
Nintendo makes loss as sales fall
Mouchel shares tumble on losses
Santander profit hit by debt rule
AstraZeneca sees drop in profits
Pension scheme membership falls

interestrateripoff · October 28, 2010

Company director pay soars as bonuses return

LONDON (Reuters) - A revival of bonuses for directors at blue-chip companies boosted their pay packets by 55 percent this year, as research showed executive earnings bounced back to pre-recession levels.

BoE to hold on QE expansion until early next year - Reuters poll

LONDON (Reuters) - The Bank of England will not resume its asset purchase programme next month after good third quarter growth figures surprised markets, but it may well do so early next year as the economy slows, a Reuters poll found.

3:25pm BST

Banks build liquidity ahead of buffer clarity

LONDON (Reuters) - Banks in Britain are amassing cash and bonds as the country's top financial regulator prepares to update the market on tough new liquidity rules before the end of the year.

4:00pm BST

Commodities help FTSE advance

LONDON (Reuters) - Britain's top share index pushed higher on Thursday, helped by a rally in heavyweight commodity issues, notably oil major Royal Dutch Shell , whose third-quarter results beat market expectations. | Video

Swine Flu H1N1 7:20pm BST

Potash Corp profit surges past expectations

TORONTO (Reuters) - Potash Corp posted a 62 percent rise in quarterly earnings on Thursday, far surpassing forecasts, as a run-up in grain prices spurred robust demand for fertilizer from the world's No.1 supplier.

7:17pm BST

Thomson Reuters raises revenue forecast

NEW YORK (Reuters) - News and data provider Thomson Reuters Corp raised its full-year revenue forecast after third-quarter revenue in its financial markets business rose for the first time in nearly two years.

6:12pm BST

Man Group eyes 180-200 job cuts - source

LONDON (Reuters) - Man Group , the world's biggest listed hedge fund firm, is planning redundancies that could number 180-200 as it cuts costs after a fall in assets and its takeover of GLG, a source familiar with the situation said.

3:23pm BST

Santander profit hit by provisions

MADRID (Reuters) - Santander , the euro zone's biggest bank, said new central bank rules would hit 2010 profit and called a halt to acquisitions while provisionally scheduling a flotation of its UK unit in the first half of 2011.

2:16pm BST

RBS picks advisors for insurance sale and IPO - source

LONDON (Reuters) - Royal Bank of Scotland (RBS) has appointed advisors to assess options for its insurance arm, which could include the flotation of the home of Direct Line and Churchill motor insurance brands, a source said.

4:42pm BST

Anglo Irish chairman won't talk with rebel bondholders

DUBLIN (Reuters) - Nationalised Anglo Irish Bank's chairman Alan Dukes has ruled out talking to a dissident group of bondholders and called on them to accept a deeply discounted 1.6 billion euro ($2.2 billion) debt exchange.

interestrateripoff · October 28, 2010

[/url]

EU 'haircut' plans rattle bondholders

Investors face large potential losses under German plans likely to win EU backing – risking a boycott of Greek, Irish, and Portuguese bonds.

House prices are still falling, says Nationwide

A significant drop in prices in the last month means gains made during the early part of 2010 have been all but wiped out.

Boris Johnson demands exemption from housing benefit cap

Government scraps £470m business investment scheme

Cable unveils Government's regional growth strategy, revealing a key grant scheme is to go and that business rates could return to council control.

FTSE 100 pay packets 'scandalous'

High street sales grow as retailers predict Christmas boost

China won't use rare earth metals as 'bargaining tool'

Pension reforms catch small employers

Big Oil profits jump on higher prices

Top 10 most productive companies in the UK

The Fed is fuelling the catastrophe of raw material prices

Mervyn King must turn off the printing press

Rebuilding confidence: Manufacturing a bright future for Britain

Interest rate rise prospect on inflation outlook

The Fed is fuelling the catastrophe of fast rising raw material prices

Warnings of recession? You could just have read the papers, Mr Bean

interestrateripoff · October 28, 2010

China Is Said to Resume Shipping Rare Earth Minerals

By KEITH BRADSHER 2:25 PM ET

Officials said that China had eased restrictions on exports of rare earth minerals to the United States and Japan.

Post a Comment | Read (34)

Agence France-Presse — Getty Images

Soil containing rare earth minerals ready to be loaded at a port in Lianyungang, China, for export to Japan last month.

Firms Knew of Cement Flaws Before Spill, Panel Says

By JOHN M. BRODER 41 minutes ago

Halliburton knew weeks before the blast on a BP rig in the Gulf of Mexico that the cement mixture it planned to use to seal the well was unstable, a commission found.

Verizon Wireless Settles Complaint Over Data Fees

By EDWARD WYATT 26 minutes ago

The company will pay $25 million to the Treasury and has agreed to pay a minimum of $52.8 million in refunds to its customers.

G.M. Moves to Clean Up Its Books Before I.P.O.

By NICK BUNKLEY 12 minutes ago

The automaker will repurchase $2.1 billion in stock held by the federal government, contribute at least $6 billion to its pension plans and pay down debt to a health care fund.

Google Agrees to Change Ad Policy to Settle Case

By ERIC PFANNER 8:35 AM ET

In a deal in France that has global implications, Google agreed to adopt conditions when it rejects ads.

DealBook

Blackstone Posts $339 Million Quarterly Profit

By DEALBOOK 9:06 AM ET

The Blackstone Group on Thursday reported a $339 million profit for its third quarter, a jump over last year as the private equity giant saw gains in most of its businesses.

Shares Wander as Wall Street Focuses on Earnings

By CHRISTINE HAUSER 2 minutes ago

Markets tried to regain lost ground late in the day amid an unexpected drop in first-time jobless filings and mixed earnings.

U.S. Jobless Claims Declined Last Week

Positive Signs on Europe and Central Asia Recovery

By JACK EWING 8:00 AM ET

A key economic sentiment indicator in Europe rose more than expected, while raised forecasts for ex-Communist countries came out.

Tax Shortfalls Spur New Fear on Europe’s Recovery Bid

Exxon’s Profit Rises 55%, Helped by Higher Oil Prices

By REUTERS 2:41 PM ET

The company easily topped forecasts as higher crude prices lifted results in its exploration business.

Economic Recovery Lifts Profit at Shell

Treasury Links Foreclosure Ills to Lower Housing Prices

By SEWELL CHAN

The uncertainty over the legal status of foreclosed homes could further delay the recovery of the housing market, the Obama administration said.

Homeowners Facing Foreclosure Demand Recourse

By ANDREW MARTIN and MOTOKO RICH

Many homeowners say they were victims of bank errors in a system where “no one double-checks anything.”

Read Comments (97)

In Spain, Homes Are Taken but Debt Stays

By SUZANNE DALEY

Laws in Spain are saddling some homeowners with mountains of inescapable debt as the economy falters.

China Wrests Supercomputer Title From U.S.

By ASHLEE VANCE

Tianhe-1A has 1.4 times the horsepower of the current top computer, which is at a laboratory in Tennessee.

interestrateripoff · October 29, 2010

Breaking news

US economy grew 2% between July and September

US economy grew at faster pace but the Federal Reserve is still expected to restart QE next week and Obama pledges 'to accelerate the recovery'
45 comments
- Dollar weakens on US GDP data
- US economic growth: what the analysts say
[*] British Airways chief blasts rise in air duty

BA chief executive Willie Walsh attacks rise in tax as hit on hard-up families, after airline returns to profit
[*] BP shares jump after investigator points finger at Halliburton

US commission investigator criticises Halliburton for weak cement mix used to seal blown-out Gulf oil well

8 comments
- BP and Halliburton knew of flaws in cement
- Shell profits flow faster as oil prices rise
[*] Rock chief quits for new bank venture

Gary Hoffman to join Lord Levene's bid to buy up Lloyds branches

[*] Conrad Black fails in bid to clear his name

Disgraced tycoon now faces threat of being returned to jail after appeal court decides not to throw out all of his convictions

[*] JJB Sports fined £445,000 by FSA

Penalty follows inquiry into sports chain's compliance with disclosure rules before release of interim results in September 2008

[*] Gas price rise takes energy bills to £1,200

Scottish and Southern Energy to raise gas tariff by 9.4%, citing 25% increase in wholesale prices
- Consumers urged to switch supplier

Austerity Britain? Bosses' pay soars 55%

Chief executives accused of ignoring economic reality
[*] Hi-tech pants offer male 'enhancement'

Marks & Spencer says Bodymax pants flying off the shelves and Selfridges sells 350 Spanx items in first day

[*] Angela Merkel forces Europe to protect euro from future collapse

Berlin and Paris join forces to push through permanent mechanism to resolve eurozone debt crises
- Cameron claims victory over EU budget decision
- David Cameron hails EU budget deal as UK victory
[*] Housing dip feared as loan approvals stall

Bank of England figures for September show approvals for new home loans were static compared with August

38 comments
- Bank of England mortgage figures: the expert view
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[*] Clubcard pair head for checkout at Tesco

Pair who invented ground-breaking loyalty card scheme bid quiet farewell to key client and majority owner, Tesco

[*] More business news

[*] Executives named in whistleblower suit still with GSK

[*] G4S loses UK deportations contract

[*] WPP's Sorrell says BBC has to accept cuts

interestrateripoff · October 29, 2010

BA returns to profit with £158m surplus

Airline's profits achieved despite flight disruption caused by the ash cloud and strikes by cabin crew.

James Moore: Santander looks like it's catching a very nasty cold from the Spanish flu

Outlook Have the wheels fallen off Banco Santander? This is the bank, remember, that incredibly brushed off the credit crunch as if it were an elephant having a minor problem with an irritating mosquito.

Jeremy Leggett: Solar storm coming: the battle for the UK energy industry

Last week's Spending Review was just a skirmish in an industry 'civil war', the Solarcentury founder tells Sarah Arnott.

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