The great interest rate rip off part 1

[interestrateripoff]

9 November 2010 Last updated at 18:24

 

New boss unveils vision for M&S

 

Marks and Spencer's new boss reports a rise in half-year profits and outlines a simpler approach to brands and overseas expansion.

 

• Bolland: 'Outlook still tough' Watch
  
• Primark enjoys 'outstanding' year
  

 

PM raises human rights with China

 

David Cameron raises the issue of human rights in talks with China, during what he called a "vitally important" trade mission to the country.

 

• Peston: Spiky words for UK firms
  
• Robinson: China trade not rights
  
• Cameron 'proud' of China trade trip Watch
  
• Nobel winner ally 'to sue China'
  

 

 

Airlines fined over cargo cartel

 

The European Commission fines 11 airlines, including BA and Air France-KLM almost 800m euros (£690m) for fixing the price of air cargo.

 

 

 

• Jaguar sales drive Tata profits
   
  Tata Motors says its profits have soared as demand for its Jaguar and Land Rover vehicles has improved
  
• Post Office to offer new services
   
  Post Offices will open for longer and allow customers to access their bank accounts, as part of plans to try to safeguard their future.
  
• Yahoo shares jump amid bid talk
   
  Yahoo shares rise more than 5% following rumours that a number of private equity firms are considering a bid.
  
• Gulf oil spill firms 'complacent'
  
• Vodafone reveals Japan withdrawal
  
• Chevron buys shale deposit owner
  
• House prices still under pressure
  
• Price of gold reaches fresh high
  
• Slow quarter saps Barclays profit
  
• Primark enjoys 'outstanding' year
  
• UK trade gap smallest since June
  
• Train overcrowding 'to get worse'
  
• Job cut tea firm defends EU grant
  

 

 

• China matters
   
  Minister says US and UK largely to blame for their deficits with China
  
• Can the UK close its China trade deficit?
  

[interestrateripoff]

UK's total debt forecast to hit £10 trillion by 2015

 

Accountancy firm PwC warns of rising debt and slow growth for decades as interest rates eventually rise.

Retailers squeezed in October

 

 

M&S profits jump, new chief unveils expansion

 

High Street retailer posts 14pc rise in first-half profits to £348.6m as Marc Bolland outlines his strategy.

 

Barclays bonuses hit £2.2bn

 

Bonuses at Barclays have reached just over £2.2bn so far this year despite what it said were "challenging markets".

85 per cent of people say top executives should be paid less

 

 

 

UK house prices slide to 18-month low

 

 

 

 

Gold breaches $1,400 for the first time

 

 

 

 

Vodafone committed to £3.1bn Softbank sale

 

 

 

 

Buyers circle Rok after collapse shocks City

 

 

 

 

Rolls-Royce statement reverses share price slide

 

 

 

 

'Nightmare' for Gartmore as Roger Guy quits

 

 

 

 

George Osborne set to close tax loopholes

 

 

EU threatens to block Chinese bids for public contracts

 

Europe moves to block Chinese companies bidding for government contracts unless China reciprocates.

BoE likely to remain cautious over growth

 

 

 

 

G20 tensions rise over the future of the global economy

 

 

 

 

David Cameron eyes China's heartland

 

Far fewer businesses hit by court judgments

 

County Court judgments against businesses and individuals for non-payment of bills has declined by 24pc in the third quarter

Whitehall budget to publicise employment law cut to £10,000

 

 

 

 

Bona fide corporate freebies 'must survive Bribery Act’

 

 

 

 

UK banks warm to Cuba but are wary of US reproach

 

Bring back the gold standard, says World Bank chief

 

Robert Zoellick, the president of the World Bank, has called on bickering G20 nations to bring gold back into the global monetary system.

 

• China is too busy trying to get rich to bother with rights
  

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• Chinese ratings agency downgrades US bonds
  

 

 

 

 

 

[interestrateripoff]

Shifting Health Costs to High Earners

 

By REED ABELSON 9 minutes ago

 

 

As costs rise, employers are shifting the burden of health care contributions to workers in top salary brackets.

 

• Prescriptions Blog: Higher Pay, Higher Insurance Costs
  

 

 

 

 

 

 

 

 

The New York Times

 

 

 

 

 

 

 

 

 

 

 

DealBook

 

Chevron to Buy Atlas Energy for $4.3 Billion

 

By THOMAS KAPLAN 38 minutes ago

 

Chevron has agreed to acquire Atlas Energy for $4.3 billion, the most recent deal by an energy company to expand in the natural gas sector.

 

Jump in Energy Demand Seen by 2035

 

By JULIA WERDIGIER 12:58 PM ET

 

In its annual report, the International Energy Agency said it expected energy demand will grow by more than a third over the next 25 years.

 

U.S. Markets Decline Slightly

 

By CHRISTINE HAUSER 9 minutes ago

 

A batch of strong corporate earnings reports fueled buying in Europe. Gold prices continued to soar as the dollar continued its slide.

 

Prescriptions Blog

 

Former Glaxo Lawyer Indicted

 

By DUFF WILSON

 

In a rare move, federal prosecutors charge that a former pharmaceutical company lawyer had misled investigators and obstructed a federal inquiry.

 

DealBook

 

Goldman Fined $650,000 for Lack of Disclosure

 

By SUSANNE CRAIG

 

Goldman Sachs failed to disclose that Fabrice P. Tourre and another employee had received a Wells Notice from the S.E.C. pointing to an enforcement action.

 

DealBook

 

The Return of the Risk Arbs

 

By HEIDI N. MOORE

 

The most telling sign that mergers are poised for a revival? Risk arbitrage has come back from the dead. Hedge funds are now pouring money into the strategy of betting on the outcomes of deals.

 

The Flash Crash, in Miniature

 

By GRAHAM BOWLEY

 

Since the so-called flash crash in May, some stocks have had mini flash crashes, which could foretell a new plunge.

 

Barclays Profit Hit by Big Loss at Investment Banking

 

By DAVID JOLLY 30 minutes ago

 

The British bank said third-quarter profit fell by more than three-fourths from a year earlier, mainly due to a charge for marking down debt the company had issued.

 

Company Accused of Firing Over Facebook Post

 

By STEVEN GREENHOUSE

 

The National Labor Relations Board said a company fired an employee illegally after she criticized her supervisor.

[interestrateripoff]

China Downgrades United States Credit

Tuesday, November 09, 2010 10:08:03 AM

(CH) Chinese rating agency Dagong Global Credit downgrades US credit rating due to QE program (update) - Chinese press

- Cut long term US sovereign rating one notch to A+ from AA, with a negative outlook.

- "The serious defects in the U.S. economy will lead to long-term recession and fundamentally lower the national solvency.

The credit crisis is far from over in the United States and the U.S. economy will be in a long-term recession." Weaker dollar will hurt US ability to attract dollar capital reflow. "In essence, the U.S. government's move to devalue the dollar indicates its solvency is on the brink of collapse"

Yep.

Gee, you think someone has been paying attention to Greenspan and the admissions of our banks?

Keep buying stocks guys.......

Oh, does anyone remember how quickly the cascade got going when Lehman and Bear were downgraded? Yeah.....

There is no fix for this other than to take those institutions that are insolvent into receivership and clean them out - roto-rooter style. It should have been done in 2007 but our regulators and politicians were too well-bribed to do what had to be done.

The longer we wait to do it, the worse the damage will be and if we wait too long, the damage will be catastrophic.

WE MUST ACT NOW.

 

It's going to get interesting.

[interestrateripoff]

Alan Greenspan: The Banks Robbed You

 

In a rather-stunning admission on Jekyll Island last weekend, Alan Greenspan "outed" what really happened.

What I've been talking about now for more than three and a half years.

And what many people have said was "an over-reaction" or "a distortion."

The claim has been repeatedly made that people made "mistakes" in our regulatory agencies, and that banks made "mistakes" making loans, packaging up securities and selling them to investors.

I have continually asserted that they were not mistakes.

They were scams and frauds.

This has been an unpopular viewpoint, with only a few - like Bill Black - agreeing with me.

Not any more.....

Is it time yet for America to force these banks into receivership?

To force prosecution for these frauds..... these crimes?

And to hold accountable the regulators.... including The Fed..... who intentionally ignored these frauds and crimes?

How many Americans have to lose their homes?

How many jobs have to go to China?

How much devaluation of our currency - undertaken to prop up these scams - will you tolerate?

How much higher does gasoline and food have to go in price, while your wages remain stagnant or you lose your job - and you're evicted from your house - before you demand it stop and the [problematic] go to prison?

[interestrateripoff]

http://www.bloomberg.com/news/2010-11-08/grant-says-ireland-going-bankrupt-eu-rescue-a-sham-video.html

 

Mark Grant, managing director at Southwest Securities Inc., and John Brynjolfsson, chief investment officer at Armored Wolf LLC, talk about Ireland's sovereign debt crisis.

European Union Economic and Monetary Affairs Commissioner Olli Rehn said today he endorses the Irish government’s plan to cut spending and raise taxes by as much as 6 billion euros ($8.4 billion) in 2011.

 

See video at the link.

[interestrateripoff]

http://www.independent.ie/business/irish/uk-banks-exposed-for-230bn-on-loans-in-ireland-2227308.html

 

THE UK would be facing the biggest losses if Ireland, its banks or mortgage borrowers defaulted on billions of euro in debts, economic statistics show. The UK's total exposure to Ireland comes to $230bn (€186bn), far higher than the approximately $175bn exposure of Germany.

While German banks, insurance companies and pension funds have been upping their holdings of Irish government and bank debt, figures from the Bank of International Settlements show the UK with a far larger exposure, caused in part by loans to the private sector, made up of developers and mortgages borrowers.

"Banks headquartered in the United Kingdom have larger exposures ($230bn) than banks based in any other country. More than half of those ($128bn) were to the non-bank private sector," said the organisation.

 

Worried, we're having a recovery. Nothing to worry about here.

[interestrateripoff]

http://www.cityam.com/news-and-analysis/stupid-policies-have-destroyed-eire

 

IT is starting to look truly grim for Ireland, which is moving ever closer to the abyss. An article yesterday by Morgan Kelly, a professor of economics at University College, Dublin, added fuel to the fire. By next year Ireland will have run out of cash, Kelly claimed, and the terms of a formal bailout will have to be agreed. This view – that Ireland is already insolvent – is fast gaining converts; no wonder Germany is so keen to introduce European treaty changes to safeguard its taxpayers.

It is hard to be optimistic. Nominal (or cash) GDP is down by about a fifth since the peak; part of this is due to a large slump in real output and partly to a nasty bout of deflation (prices fell an astonishing 6.6 per cent in the year to October 2009, though they have risen since). The debt burden, for the state as well as individuals, therefore automatically shot up. Even though wages have declined (increasing debt to earnings ratios), the number of employees has collapsed nearly 13 per cent. In the UK, that would be akin to the workforce having fallen by 3.8m, a depression-style outcome.

 

More at the link.

[interestrateripoff]

http://www.guardian.co.uk/business/2010/nov/08/ireland-toxic-mortgages-country-ruin-economist

 

A leading economist who predicted Ireland's property collapse is forecasting a new wave of toxic debt could sink the country entirely, this time related to domestic mortgages. As the premium demanded by investors to hold Irish debt hit fresh highs today, Morgan Kelly predicted a 19th-century-style land revolt by the public, warning their patience over the bank bailout is wearing thin.

 

Irish household were stretching themselves to the maximum to pay mortgages they cannot afford because of the stigma attached to default. "That will change," Kelly wrote in the Irish Times. "The perception growing among borrowers is that while they played by the rules, the banks certainly did not, cynically persuading them into mortgages that they had no hope of affording."

 

A professor of economics at University College Dublin, Kelly's comments have been seized upon as evidence that the country's financial woes will get worse before they get better. He says the cost of the bank bailout, estimated at €50bn (£43bn), will be far higher than the government has admitted, with losses at Allied Irish Bank and Bank of Ireland equalling those of toxic bank Anglo, leaving the taxpayer with a €70bn bill.

 

Economist Stephen Kinsella described his views as significant. "They are unpleasant, they are scary, but they come true, and recent history has proven him right time and again. I began life as an economist critical of Kelly's stance, then I saw his data and the accuracy of his predictions and became convinced by much of what he has to say. "

 

Doubts about the state of Ireland's public finances continued to cause concern on the money markets today. The yield on 10-year Irish bonds shot above 8% – much higher than the cost of borrowing from the European Union's emergency fund – while the premium demanded by investors over German bonds topped 570 basis points (bps).

 

A budget planned for next month will outline more savage cuts in public spending aimed at curbing the deficit while public anger at the amount of money spent bailing out the banks continues to mount.

 

 

 

Luckily the Euro bailout fund will solve all of the problems in this mess.

 

Europe will borrow the money Ireland cannot pay back, possible from the same people who lent the money to Ireland in the first place.

[interestrateripoff]

http://www.guardian.co.uk/business/2010/nov/08/ireland-toxic-mortgages-country-ruin-economist

 

A leading economist who predicted Ireland's property collapse is forecasting a new wave of toxic debt could sink the country entirely, this time related to domestic mortgages. As the premium demanded by investors to hold Irish debt hit fresh highs today, Morgan Kelly predicted a 19th-century-style land revolt by the public, warning their patience over the bank bailout is wearing thin.

 

Irish household were stretching themselves to the maximum to pay mortgages they cannot afford because of the stigma attached to default. "That will change," Kelly wrote in the Irish Times. "The perception growing among borrowers is that while they played by the rules, the banks certainly did not, cynically persuading them into mortgages that they had no hope of affording."

 

A professor of economics at University College Dublin, Kelly's comments have been seized upon as evidence that the country's financial woes will get worse before they get better. He says the cost of the bank bailout, estimated at €50bn (£43bn), will be far higher than the government has admitted, with losses at Allied Irish Bank and Bank of Ireland equalling those of toxic bank Anglo, leaving the taxpayer with a €70bn bill.

 

Economist Stephen Kinsella described his views as significant. "They are unpleasant, they are scary, but they come true, and recent history has proven him right time and again. I began life as an economist critical of Kelly's stance, then I saw his data and the accuracy of his predictions and became convinced by much of what he has to say. "

 

Doubts about the state of Ireland's public finances continued to cause concern on the money markets today. The yield on 10-year Irish bonds shot above 8% – much higher than the cost of borrowing from the European Union's emergency fund – while the premium demanded by investors over German bonds topped 570 basis points (bps).

 

A budget planned for next month will outline more savage cuts in public spending aimed at curbing the deficit while public anger at the amount of money spent bailing out the banks continues to mount.

 

 

 

Luckily the Euro bailout fund will solve all of the problems in this mess.

 

Europe will borrow the money Ireland cannot pay back, possible from the same people who lent the money to Ireland in the first place.

[kathy918]

go to uptherevolt (no gap here) .weebly.com/

 

Sign my form and vote. Its time we got nasty!

[interestrateripoff]

Breaking news

 

• 
  
• General Growth eyes dividend; Howard Hughes trades - Reuters
  
• Boeing halts 787 test flights after cockpit smoke - Reuters
  
• Euro dips as pound shines; dlr/yen at 1-mth high - Reuters
  
• GE to spend $500 mln on Brazil center, expansion - Reuters
  
• Deutsche CEO says optimistic on 2011, new rules - Reuters
  
• brand vendors hit Nokia, smartphones next-Gartner - Reuters
  
• Network Rail, Jarvis charged over Potters Bar crash - Reuters
  
• ILO says global jobs recovery "volatile and uneven" - Reuters
  

 

 

 

• King warns of global threats to UK's economic recovery
   
  Bank of England governor Mervyn King warns of global threats to UK's recovery on eve of G20 summit
  12 comments
  
  • World economy faces 'difficult and dangerous times'
    
  • Inflation report: what the economists say
    
  • Bank set to raise growth forecasts
    
  • Has Mervyn King overstepped the mark?
    
  • QE and interest rates held
    
  • More on the Bank of England
    

  [*] 'Culture of complacency' at BP

   

  US presidential commission identifies 'incredible failures' at BP, Halliburton and Transocean ahead of fatal Gulf of Mexico disaster

  32 comments

  • Gas glut threatens green investment, IEA warns
    

  [*] Sainsbury claims X Factor boost

   

  Boss Justin King claims sales of premium range have been lifted by people trying to recreate restaurant atmosphere at home in front of the TV

   

  • M&S chief overturns Rose's legacy
    
  • Nils Pratley: Bolland plays it safe
    
  • Poll: Is the new M&S boss right?
    

  [*] BAA warns foreign tourists put off by UK spending cuts and tax rises

   

  Airport operator warns spending cuts, air passenger duty rise and VAT increase will deter visitors

   

  • Union branches refuse to back BA cabin crew deal
    

 

 

• Surge in Chinese trade surplus brings currency war into sharp focus
   
  Pressure grows on China and its currency policy ahead of G20 summit as country reports jump in trade surplus
  8 comments
  
  • Record trade deficit for UK
    
  • Cameron vows to double UK trade to China
    
  • Cable rows with bank bosses during trade mission
    
  • Rolls-Royce secures £750m China deal
    

  [*] Barclays sets aside £1.6bn for bonuses

   

  Third-quarter results hint at size of December payouts, despite a loss this quarter from Barclays Capital

  37 comments

  • New Lloyds chief urged to stop job losses
    
  • Investigation launched into soaring executive pay
    
  • Robin Hood tax 'could raise $26bn a year'
    

  [*] Vodafone launches multimedia offensive

   

  Chief executive Vittorio Colao focuses on mobile internet market and says UK business 'resilient' to public spending cuts

   

  • Nils Pratley: Asset shuffling pays off
    
  • Billions at stake in the smartphone patent wars
    

  [*] More business news

  [*] Portuguese bank sacks ratings agency

  [*] ILO faces pickets by staff

[interestrateripoff]

Bank sees CPI below target but next move unclear

 

LONDON (Reuters) - The Bank of England expects inflation to fall below target in two years, but a highly uncertain economic outlook makes it unclear whether the central bank's next move will be to loosen or tighten policy.

Continue Reading

 

 

 

FTSE down as commods retreat, outlook uncertain

 

LONDON (Reuters) - Weak commodity stocks pushed top shares lower on Wednesday, following falls overnight on Wall Street and in Asia as downbeat import data from China dampened sentiment.

12:36pm GMT

 

Special report - Can this committee save the world from bankers?

 

LONDON (Reuters) - Was the creation of the Financial Stability Board last year a bloodless coup by the world's central bankers? A repeal of the U.S. Declaration of Independence? That's certainly how some in America view the new body which is supposed to plug the holes in the world's financial regulations.

G20 1:32pm GMT

 

U.S. jobless claims fall, trade gap narrows

 

WASHINGTON (Reuters) - Initial claims for U.S. jobless benefits hit a four-month low last week, while the trade gap narrowed more than expected in September, hopeful signs for an economy that has been stuck in a slow-growth rut.

2:24pm GMT

 

U.S. October import prices rise 0.9 percent

 

WASHINGTON (Reuters) - A jump in petroleum import prices pushed October U.S. import prices to the biggest gain since April, but the rise was less than forecast, a government report showed on Wednesday.

2:06pm GMT

 

Court rules against government on home building

 

LONDON (Reuters) - A minister's decision to scrap regional housing targets was unlawful, a court ruled on Wednesday, a decision which home builders said should allow thousands of stalled development projects to go ahead.

UK, 2:15pm GMT

 

FSA seeks stricter disclosure on salaries

 

LONDON (Reuters) - The Financial Services Authority (FSA) wants stricter rules to govern the disclosure of salaries paid in the industry, as governments worldwide look for ways of clamping down on disproportionately high bankers' pay in the wake of the credit crisis.

G20 1:53pm GMT

 

China raises bank reserves as cash inflows surge

 

BEIJING (Reuters) - China has increased required reserves for its biggest banks to mop up some of the cash that is streaming into the country and posing a growing inflationary threat.

G20 12:33pm GMT

 

Obama calls on G20 leaders to do their part

 

SEOUL (Reuters) - President Barack Obama sought to swing the G20 spotlight back onto global imbalances and take his own country's policies out of the glare as world leaders gathered in Seoul on Wednesday.

G20, David Cameron 3:36pm GMT

 

Cameron urges China to move on exchange rate

 

BEIJING (Reuters) - Prime Minister David Cameron pledged on Wednesday to fight trade protectionism ahead of the G20 meeting, but urged China to move towards greater exchange rate flexibility to safeguard the global recovery.

[interestrateripoff]

MPs fume as Barnier rejects invite to hearing

 

 

Westminster and Brussels are set for another collision as MPs try to haul a recalcitrant EU commissioner before them for questioning.

 

• 'No significant slowdown - but 3.5% inflation spike' new
  
• 'X Factor effect' boosts profits, says Sainsbury's boss new
  
• Business fliers boost air passenger numbers
  
• Bolland vows to boost M&S sales by 25 per cent
  
• Bankers flock to Barclays despite bonus crackdown
  
• IEA predicts oil breaking $200 by 2035 as China keeps on trucking
  
• Cotton costs will our hit margins, warns Primark
  

 

David Prosser: If you're going to stiff us, Michel, at least tell us to our faces

 

 

Outlook The indignation of Andrew Tyrie over the decision of Michel Barnier not to appear before the Treasury Select Committee, jumps off the page of the open letter he has sent to the European Commissioner for Internal Markets' boss demanding a change of course.

 

• David Prosser: The M&S strategic review that wasn't
  
• David Prosser: Yell still has a chanceto recover
  
• David Prosser: When star fund managers decide to jump ship, it is time to turn out the lights
  
• Sean O'Grady: Higher tuition fees will be paid for in lower house prices
  
• Mark Leftly: Proof that a word in the right ear changes policy
  

 

Korea welcomes a divided world

 

Ahead of this week's G20 summit in Seoul, finance ministers have been busy falling out over how to cure their economic ills. The omens are not good

 

• Chrysler: from bust to vroom
  
• The Business on: Nick Robertson, Chief executive, Asos
  
• The bookseller who doesn't read novels
  
• After precious potash, what else is hot?
  
• Look to the future Marc, it's only just begun...
  

[interestrateripoff]

10 November 2010 Last updated at 15:23

 

Bank says economy still uncertain

 

The Bank of England says the outlook for the UK is uncertain and the strength of the recovery depends largely on the world economy.

 

• 'Slower' Scots recovery predicted
  
• King delivers warning to G20 Watch
  

 

Obama urges global co-operation New

 

President Barack Obama pleads with world leaders to put aside differences and work together for global economic recovery.

 

• Peston: China - Boom or bust
  
• Embrace democracy, PM urges China
  
• Cameron 'proud' of China trade trip Watch
  
• Currency war's key battlegrounds
  

 

 

Leading phone makers lose share

 

The world's leading mobile phone makers are losing market share to Asian non-brand manufacturers, research says.

 

 

 

• General Motors sees profits surge
   
  US automotive giant General Motors posts a big third quarter profit, fuelled by a rise in sales both in the US and overseas.
  
• Setback in bid to end BA dispute
   
  One of the unions representing British Airways cabin crew refuses to endorse a peace deal to end the long-running dispute.
  
• Mobile money-back rights secured
   
  Many mobile phone customers will find it easier to cancel a contract and get their money back if network coverage is poor.
  
• Rail crash firms to be prosecuted
  
• Tax review urges overhaul on VAT
  
• Sainsbury's profits and sales up
  
• Tata safety move after Nano fires
  
• Loan insurance dominates gripes
  
• China's trade surplus hits $27bn
  
• Euro Disney trims annual losses
  
• Singapore Airlines in A380 change
  
• Airlines fined over cargo cartel
  
• New boss unveils vision for M&S
  
• Post Office to offer new services
  

[interestrateripoff]

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Inflation divides Bank of England

 

November Inflation Report reveals the extent of the divide among policymakers over the future direction of the UK economy.

UK tax system needs overhaul to aid recovery

 

 

 

 

Cameron warns China over economic policies

 

PM urges economic reforms to prevent 'dangerous tidal wave' of fund flows wiping out benefits of globalisation.

 

Babcock: carrier changes will add £800m to bill

 

Changes to the £5.2bn aircraft carrier programme, intended to save the taxpayer money, will add as much to £800m to the cost of each ship.

 

Sainsbury bullish as profits rise 36pc

 

Supermarket chain delivers 36pc rise in first-half profits, says well placed to cope with "challenging economoic environment".

 

Singapore Airlines to change A380 engines

 

 

 

 

EC Markets chief refuses grilling by MPs

 

 

 

 

China faces yuan pressures as surplus balloons

 

 

 

 

Tullett Prebon faces data theft claim by BGC

 

 

 

 

Last ditch talks to save Rok collapsed

 

 

 

 

 

 

Questor share tips

 

Special: Morgan Stanley's pick of China growth stocks.

 

Market report today

 

Weakening Wall St pushes the FTSE 100 futher into the red.

 

Business Bullet

 

 

Latest news on: Markets, Inflation, Pru, G20 summit

 

 

 

 

Inflation will squeeze families, says Mervyn King

 

Budgets to be hit by higher prices and low wages, Bank of England warns.

UK tax system needs overhaul to aid recovery

 

 

 

 

What is the cost of a pint of beer?

 

 

 

 

IMF warns austerity measures may have to be reconsidered

 

 

Serps: game of chance on a pensions promise

 

If you stay in Serps, will you ever see the benefit?

Jessica helps find £10,700 lost shares for reader

 

 

 

 

85 per cent of people say top executives should be paid less

 

 

 

 

Chip and pin replaces charity tin

[interestrateripoff]

Ahead of Stock Offering, G.M. Posts $2 Billion Profit

 

By NICK BUNKLEY 8:51 AM ET

 

 

The automaker reported its largest quarterly profit in 11 years, showing that it no longer depends on huge sales.

 

 

 

Chevrolet

 

Middle-school students from Detroit-area schools got a look at a Chevrolet Volt plug-in hybrid during a visit to a G.M. plant in Hamtramck, Mich., this week.

 

 

 

 

 

 

In Message to G-20 Leaders, Obama Aims to Calm Tensions

 

By SEWELL CHAN and SHERYL GAY STOLBERG 37 minutes ago

 

The president marked the start of the G-20 summit by imploring leaders to shift global economic demand away from its reliance on American consumption and borrowing.

 

• Notebook: Keeping Development on the Agenda
  

 

U.S. Trade Deficit Narrowed in September

 

By REUTERS 9:10 AM ET

 

A weak dollar helped exports grow for the third straight month, and a separate report showed a drop last week in new unemployment claims.

 

China's Trade Surplus Rises to $27.1 Billion in October

 

By ANDREW JACOBS and BETTINA WASSENER

 

The data were likely to fuel political tensions a day before the Group of 20 leaders were set to tackle a framework to correct global trade imbalances.

 

Markets Slump as China Tightens Bank Rules

 

By THE ASSOCIATED PRESS 9:47 AM ET

 

Wall Street opened lower and stocks were off in Europe as investors awaited international action on trade and currency questions.

 

F.D.A. Unveils Graphic Warning Labels for Cigarettes

 

By GARDINER HARRIS 30 minutes ago

 

Designed to cover half of a pack’s surface area, the proposed labels are intended to spur smokers to quit by providing graphic reminders of tobacco’s dangers.

 

• Post a Comment | Read (14)
  

 

ING Moves Toward I.P.O.s for Insurance Units

 

By DAVID JOLLY 7:15 AM ET

 

The Dutch financial services company is spinning off its U.S. and European insurance businesses to satisfy regulators' demands for divestitures.

 

A 24-Karat Safety Net for Investors

 

By NELSON D. SCHWARTZ and GRAHAM BOWLEY

 

Investors worry that a Fed move to add $600 billion to the banking system may undermine paper currencies.

 

In These Lean Days, Even Stores Shrink

 

By STEPHANIE CLIFFORD

 

Some retailers are cutting the size of stores and inventory to limit costs and provide a focused shopping experience.

 

DealBook

 

For Morgan Stanley C.F.O., a Hard Road Ahead

 

By SUSANNE CRAIG

 

Ruth Porat is trying to excel not only during difficult times for Morgan Stanley, but also in the face of a terrible track record for top women on Wall Street.

 

Singapore Air Pulls 3 Jets From Service

 

By KEVIN DREW 6:45 AM ET

 

The airline pulled three of its A380 jetliners from service Wednesday after tests revealed oil stains on their engines.

 

A New Round in a Long Coal Battle

 

By BARRY MEIER

 

The case of Hugh Caperton has served as a plot line in a John Grisham drama, and it will continue as the former coal mine owner sues in Virginia.

 

 

 

• Stage Set for Showdown on Online Privacy
  
• Schools Chief Has Much in Common With Boss
  
• Some Companies Shift Health Costs to Better-Paid
  
• Supreme Court Weighs Class-Action Suits
  
• News Analysis: Obama and China Play Rival Suitors to Indonesia
  

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Questioning The Fed's Constitutionality

 

There's an interesting article on Fox Business, but in my view it misses the point.

Is the Federal Reserve violating the U.S. Constitution's separation of powers in its new purchases of $600 billion worth of U.S. Treasuries? Is the Fed engaging in an unconstitutional monetization of the U.S. Congress' out of control spending spree that is really a bridge loan to fiscal insanity?

Well, yes and no.

QE is stupid, but it is probably Constitutional.

However, much of what The Fed has done thus far is flatly unlawful.

As I have repeatedly pointed out for more than two years, The Fed is not empowered to buy (as opposed to loan against) any security that does not carry the full faith and credit of The United States.

Fannie and Freddie paper does not qualify for this treatment - not since Fannie was split off from the government as a quasi-government company and Freddie formed. Ginnie Mae paper is the only mortgage-related paper that carries the requisite guarantee.

The Fed relies on a rather-ambiguous CFR cite to support buying and holding that paper. But CFRs do not override black-letter law, and Section 14 of The Federal Reserve Act control what The Fed can actually buy. That's law .vs. CFR, and law (because it is actually passed by Congress and signed by The President) wins.

But the Fed effectively did make such a monetary gift to Fannie Mae and Freddie Mac when it bought its rotten mortgage-backed securities, notes John Hussman of Hussman Funds.

Hussman says: "It is doubtful that when Congress drafted the Federal Reserve Act to allow the use of mortgage-backed securities, it ever dreamed that the Fed would purchase these securities outright when the issuer was insolvent. Until this issue is clarified in legislation, Bernanke will continue to see it as 'perfectly sensible' for the Fed to make 'money financed gifts' that substitute his own personal discretion for those of a democracy."

It's not "doubtful", it's known. Again, Section 14 tells Bernanke exactly what he can and can't buy. He can't buy MBS nor "agency" debt unless it carries the full faith and credit of The United States. Temporary status (as pronounced without legislation by Geithner) does not count; "Full Faith and Credit" is, by definition, an irrevocable thing.

Then there are the Maiden Lane LLCs. Bernanke has multiple ones. The first one was illegal when Bear Stearns was bailed out. Congress refused to put a stop to it, so he created more of then when Lehman went down.

If you or I were to wantonly violate the law like this we'd be fitted for a pair of leg shackles. Instead, Bernanke gets reappointed by our President.

The fact of the matter is that the entirety of the Federal Apparatus, including the OCC, OTS, FDIC and The Fed, was well-aware of the scams and frauds in the housing market financial system four years before it blew up. We know this because the FBI issued a report in 2003 warning of an "epidemic" of mortgage fraud. They not only did nothing they sued to stop the states from interfering in the frauds!

They also knew years ago about problems with the securitization of this debt, the sale of bogus securities and the other assorted scams. We know that too, because once again they blocked state "interference" in improper foreclosures - three years ago.

The fact of the matter is that we no longer live in a Constitutional Republic.

And you, the people of this nation, cheer and vote for "hope and change." Well, I voted for "change" too. The problem is that now, after another two years of relentless looting all you've got left is change.

This will not stop until the people demand it does. This is not a partisan issue; it is an American issue. Until Americans rise and demand it stop, laying siege to The Capitol in a peaceful but "in your face" demonstration of demands, it will continue.

One-day "wonder protests" will not do the job. Organized sign-waving, where a few people (and yes, folks, 100,000 in a nation of 330 million is "a few") show up and then are gone six hours later, will do nothing. It will be ignored, just as it has been thus far.

The looting will not stop until hundreds of thousands of angry Americans - a mere 1/2% of the population - shows up in an uncoordinated fashion in Washington DC and refuses to leave until we get results. Until signs are waved in every Federal Reserve, Congressional and Senatorial staffer and official's face at their office, their home, and when they go out for a cup of coffee - or dinner.

That's right - no leaders, no "Tea Party" protests, no permits, no organization. Just people, all ****ed off, all demanding the same thing, and all refusing to leave until they get the most-basic of things allegedly guaranteed in our Constitution - The Rule of Law, Due Process, and Prosecution of Fraudsters.

Then - and only then - will it stop.

[interestrateripoff]

The Press Continues To Wake Up

 

If you were wondering if the Federal Government was engaged in a conspiracy (yes, that word) with the large banks to steal houses, you no longer need to wonder.

It is .

But even as it closed the door on state oversight, the OCC chose itself not to scrutinize the foreclosure operations of the largest national banks, forgoing any examination of their

procedures and paperwork

. Instead, the agency relied on the banks' in-house assessments. These provided no hint of the problems to come until they had tripped the nation's housing market, agency officials later acknowledged.

Dateline: 2007.

Where have we seen this before? Oh yeah: When the OCC went to court with the backing of the Bush Administration to block enforcement of state predatory lending laws.

That's right folks: The so-called "regulators" regulated your right to a fair deal - they made sure you didn't get one. They knew the banks were cheating and playing games - effectively robbing the people - and not only did nothing, they blocked the states from putting a stop to it.

Now can someone tell me, once again, why we as Americans continue to respect the Federal Government?

And don't give me this crap about "they have guns."

I remind you that in the 1960s and early 70s the government had lots of guns too, and yet the people effectively forced the government to withdraw from Vietnam.

When the people of this nation - hundreds of thousands of them - are willing to lay peaceful siege to Washington DC - to be "in their face" every single day without fail, refusing to leave, being in the face of every Congressman, every Senator, every FOMC and Federal Reserve Board Governor, every OCC employee - at their office, in front of their house, where they appear to give speeches - then, and only then, will the banks robbing people stop.

Just 1/2 of 1% of the population of this nation would be over 1.5 million people.

We get robbed because we, thus far, are consenting.

We get robbed because not even 1/2 of 1% of the population will rise and demand that it stop, the banks involved be closed and their executives prosecuted - being "in their face" - on a literal daily basis until it does.

[interestrateripoff]

 

Remember it's all contained....

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http://market-ticker.org/akcs-www?post=171802

 

So for those who believe that Europe "avoided" an explosion in Greece by coming up with their "bailout'..... have you looked at Irish Bond Spreads lately?

 

They blew through 600bps today.

 

That's beyond the event horizon. The singularity is somewhere around 800bps. At the present rate we'll get there in another few days, and we might get there at a greatly "accelerated" rate.

 

I strongly recommend that you pay close attention to this. The Irish banks were basically carpeted-over much like ours, except that this is a much smaller economy and the lies are harder to maintain. Now the dead fish has rotted the floor joists, and the creeking noises are getting louder.

 

Should the ECB intervene, and I expect them to, it will not fix anything.

 

The possibility of a monster move - southbound in equities, northbound in the dollar, southbound in the Euro - is definitely on the table here.

I have said that I expected the next big "problem" to arise over in Europe. It appears it's coming, and perhaps sooner than I thought. The problem with Ireland blowing up is that it will be the second one - and prove that the ECB's "rescue" was ineffective.

 

That is at least somewhat-likely to lead to a panic reaction in the markets, as once you get lied to and screwed, you tend to panic first and fast.

 

Bernanke probably knew this when he announced QE2, as I have noted, and expected it to "cushion" the shock of the QE liquidity injection on the dollar. The problem with liquidity is that it can fix a liquidity crisis, but is exactly like pouring gasoline - or nitroglycerine - on a solvency problem.

 

Ireland = dead man walking. It's hard to see how Ireland can be saved, on TV last night I'm sure I heard that GNP had collapsed by 20% in 3 years.

 

Still I'm sure issuing more debt will solve all of this.

 

Ireland's only option is to default, however what happens to the Euro will be an interesting question.

[interestrateripoff]

http://www.bloomberg...ldman-says.html

Ireland, Portugal Bailout Would Help Resolve Market Tension, Goldman Says

 

By Matthew Brown - Nov 10, 2010 1:43 PM GMT Tweet (1)LinkedIn Share

 

A bailout of Ireland and Portugal through the European Financial Stability Fund would resolve current market tension and not lead to contagion, according to Goldman Sachs Group Inc.

 

“The likelihood of Ireland and Portugal entering an IMF- designed adjustment program funded by the EFSF has, in our view, increased,”Francesco Garzarelli, chief interest-rate strategist at Goldman in London, wrote in a research report today. “Unlike in the aftermath of the Greek ‘bailout,’ we are of the view that such an outcome will not lead to contagion. Rather, it may mark a resolution of ongoing European Monetary Union sovereign tensions.”

 

Irish bonds fell for a 12th straight day, widening the yield spread with benchmark German bunds by 31 basis points to as much as 586 basis points, the most on record. Portuguese bonds also fell, widening the yield spread by 11 basis points to 454 basis points, also a record.

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http://www.telegraph.co.uk/finance/economics/8125051/Chinese-inflation-rises-at-fastest-rate-in-two-years.html

 

The consumer price index (CPI) - a key measure of inflation - rose 4.4pc year-on-year last month, compared with 3.6pc in September, the National Bureau of Statistics said.

 

It was the fastest pace since September 2008 - the start of the global financial crisis, when consumer prices rose 4.6pc.

 

Consumer prices increased 0.7pc month-on-month.

 

The October figure, which outstripped several analysts' predictions, comes as the world's second-largest economy battles to rein in consumer prices and soaring housing costs.

 

Over the first 10 months of the year, the CPI was up 3pc, mainly driven by rising food prices and living costs, NBS spokesman Sheng Laiyun told a news conference.

 

"Price pressures are increasing. That means pressure on macroeconomic controls is increasing," Mr Sheng said.

 

The October CPI reading marked a "very sharp increase" and persistent upward pressures on prices meant any dip in the coming months would be shallow and short-lived, said Brian Jackson, a senior strategist at Royal Bank of Canada.

"It's obviously eye-catching.... There are some reasons to think it might pull back in the next couple of months but I wouldn't want to bet the house on that," Mr Jackson told AFP.

 

"More rate hikes are clearly on the way, and today's data also reinforces the case for faster currency appreciation," he added in a note.

 

The People's Bank of China last month raised its benchmark one-year lending and deposit rates by 25 basis points each - the first increase in nearly three years.

 

Still if the Americans print China won't now be importing US inflation.... Meaning higher wages for the Chinese which may eventually make American goods competitive..

 

As long as this recovery keeps gathering pace we have nothing to worry about....

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http://www.telegraph.co.uk/finance/personalfinance/8123416/Millions-of-Britons-living-beyond-their-means.html

 

They typically need take home pay of £1,700 a month to cover their costs, which equates to more than the average salary. But earnings are failing to keep pace, leaving them with an annual shortfall of £4,320, the findings from insurer Bright Grey suggests.

 

It found that almost a third of people say their spending puts a strain on the household budget, while 8 per cent admit their spending has put their household into debt.

The most common reason cited by 30 per cent of people for overspending was ‘just because I have to’, while 21 per cent said they enjoy their lifestyle too much to give it up. A further 15 per cent said they are simply hopeless with money and 11 per cent admitted they use credit to keep up with high-earning friends.

 

Roger Edwards, a director at Bright Grey, said: “Even in an Age of Austerity the public's spending shows no sign of waning, as the average UK adult continues to spend beyond their means and rack up debt.

 

“Worryingly, this is mainly due to the average salary being far short of that needed to lead a comfortable life and those who just can't help but spend either to fund their lifestyle or just to make ends meet.”

It comes after separate research suggested Britons are typically draining their savings by £100 a month to cover household bills and ‘back to school’ costs.

 

And this magic money all helps GDP.

 

Too many people have no idea how to live within their means, nothing wrong with some debt providing you have a clear plan to pay it off rather than just being perpetually in debt.

 

I wonder how much longer before the damn finally bursts?

 

Still free money should solve everyone's problems, it's the easy answer and we all love easy answers.

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http://www.guardian.co.uk/business/2010/nov/09/fitch-credit-rating-agency-portugal-bank

 

The credit-rating agency Fitch was fired by one of Portugal's biggest banks today in the latest assault on agencies during Europe's sovereign debt crisis.

 

Banco Espírito Santo (BES) was downgraded from A to BBB+ but insisted that the action by Fitch did "not reflect the financial soundness of the bank".

 

It was the second downgrade of BES since July, prompting the bank to argue that there was "no valid justification for a three-notches downgrade in less than four months". "Thus the board of directors decided to terminate the contract with Fitch Ratings as a result of these rating actions," the bank said.

 

The agency also cut the ratings of three other Portuguese banks amid continuing concerns about the risks they faced in funding themselves on the markets and their reliance on funds provided by the European Central Bank (ECB).

 

The concerns expressed by BES follow fierce criticism of agencies during the crisis over debt-laden countries in the eurozone. A downgrade raises borrowing costs.

 

 

More fuel for the idea the rating agencies got paid simply for giving a good rating rather than being objective.