STOCK MARKET WATCH -- Monday, 13 May 2013

[Tansy_Gold]

[font size=3]STOCK MARKET WATCH, Monday, 13 May 2013[font color=black][/font]

SMW for 10 May 2013

AT THE CLOSING BELL ON 10 May 2013
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Dow Jones 15,118.49 +35.87 (0.24%)
S&P 500 1,633.70 +7.03 (0.43%)
Nasdaq 3,436.58 +27.41 (0.80%)


[font color=red]10 Year 1.90% +0.06 (3.26%)
30 Year 3.08% +0.06 (1.99%)[font color=black]


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[font size=2]Market Conditions During Trading Hours[/font]
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[font size=2]Euro, Yen, Loonie, Silver and Gold[center]

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[font color=black][font size=2]Handy Links - Market Data and News:[/font][/font]
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Economic Calendar
Marketwatch Data
Bloomberg Economic News
Yahoo Finance
Google Finance
Bank Tracker
Credit Union Tracker
Daily Job Cuts
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[font color=black][font size=2]Handy Links - Economic Blogs:[/font][/font]
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The Big Picture
Financial Sense
Calculated Risk
Naked Capitalism
Credit Writedowns
Brad DeLong
Bonddad
Atrios
goldmansachs666
The Stand-Up Economist
The Automatic Earth
Wall Street on Parade
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[font color=black][font size=2]Handy Links - Essential Reading:[/font][/font]
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Matt Taibi: Secret and Lies of the Bailout


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[font color=black][font size=2]Handy Links - Government Issues:[/font][/font]
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LegitGov
Open Government
Earmark Database
USA spending.gov
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[font color=black][font size=2]Handy Links - Videos:[/font][/font]
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Charlie Rose talks with Roubini
Charlie Rose talks with Krugman
William Black: This Economic Disaster
Bill Moyers with Kevin Drum and David Corn
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[font color=red]Partial List of Financial Sector Officials Convicted since 1/20/09 [/font][font color=red]
2/2/12 David Higgs and Salmaan Siddiqui, Credit Suisse, plead guilty to conspiracy involving valuation of MBS
3/6/12 Allen Stanford, former Caribbean billionaire and general schmuck, convicted on 13 of 14 counts in $2.2B Ponzi scheme, faces 20+ years in prison
6/4/12 Matthew Kluger, lawyer, sentenced to 12 years in prison, along with co-conspirator stock trader Garrett Bauer (9 years) and co-conspirator Kenneth Robinson (not yet sentenced) for 17 year insider trading scheme.
6/14/12 Allen Stanford sentenced to 110 years without parole.
6/15/12 Rajat Gupta, former Goldman Sachs director, found guilty of insider trading. Could face a decade in prison when sentenced later this year.
6/22/12 Timothy S. Durham, 49, former CEO of Fair Financial Company, convicted of one count conspiracy to commit wire and securities fraud, 10 counts of wire fraud, and one count of securities fraud.
6/22/12 James F. Cochran, 56, former chairman of the board of Fair, convicted of one count of conspiracy to commit wire and securities fraud, one count of securities fraud, and six counts of wire fraud.
6/22/12 Rick D. Snow, 48, former CFO of Fair, convicted of one count of conspiracy to commit wire and securities fraud, one count of securities fraud, and three counts of wire fraud.
7/13/12 Russell Wassendorf Sr., CEO of collapsed brokerage firm Peregrine Financial Group Inc. arrested and charged with lying to regulators after admitting to authorities he embezzled "millions of dollars" and forged bank statements for "nearly twenty years."
8/22/12 Doug Whitman, Whitman Capital LLC hedge fund founder, convicted of insider trading following a trial in which he spent more than two days on the stand telling jurors he was innocent
10/26/12 UPDATE: Former Goldman Sachs director Rajat Gupta sentenced to two years in federal prison. He will, of course, appeal. . .
11/20/12 Hedge fund manager Matthew Martoma charged with insider trading at SAC Capital Advisors, and prosecutors are looking at Martoma's boss, Steven Cohen, for possible involvement.
02/14/13 Gilbert Lopez, former chief accounting officer of Stanford Financial Group, and former controller Mark Kuhrt sentenced to 20 yrs in prison for their roles in Allen Sanford's $7.2 billion Ponzi scheme.
03/29/13 Michael Sternberg, portfolio mgr at SAC Capital, arrested in NYC, charged with conspiracy and securities fraud. Pled not guilty and freed on $3m bail.
04/04/13 Matthew Marshall Taylor,fmr Goldman Sachs trader arrested, charged by CFTC w/defrauding his employer on $8BN futures bet "by intentionally concealing the true huge size, as well as the risk and potential profits or losses associated."
04/04/13 Matthew Taylor admits guilt, makes plea bargain. Sentencing set for 26 June; faces up to 20 years in prison but will likely only see 3-4 years. Says, "I am truly sorry."
04/11/13 Ex-KPMG LLP partner Scott London charged by federal prosecutors w/passing inside tips to a friend in exchange for cash, jewelry, and concert tickets; expected to plead guilty in May.










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[font size=3][font color=red]This thread contains opinions and observations. Individuals may post their experiences, inferences and opinions on this thread. However, it should not be construed as advice. It is unethical (and probably illegal) for financial recommendations to be given here.[/font][/font][/font color=red][font color=black]

[Demeter]

1. Friday the 13th Comes on a Monday this Month

And it looks like oil and precious metals are getting squeezed again...

[xchrom]

2. Europe Eases Corporate Tax Dodge as Worker Burdens Rise

http://www.bloomberg.com/news/2013-05-13/europe-eases-corporate-tax-dodge-as-worker-burdens-rise.html

In early November, members of the U.K. Parliament assailed executives from Google Inc. (GOOG), Starbucks Corp. (SBUX) and Amazon.com Inc. (AMZN) for moving billions of dollars in profits into tax havens.

Less than a month later, Chancellor of the Exchequer George Osborne said he would lower the U.K.’s corporate tax rate to 21 percent, below Germany and France, from 28 percent in 2010. A month after that, the U.K. cut the rate further, to less than 6 percent, on profit attributed to offshore arms that make loans to other units. These subsidiaries can help U.K.-based multinationals shift income to mailboxes in tax havens.

“Here is a blatant incentive inside the U.K. tax system to move profits previously in London into a tax haven,” said Richard Murphy, director of Tax Research LLP in Norfolk, England. “It is just absurd. At the same time, we have people like Osborne saying ’I’m going to crack down on tax avoidance.”’

As politicians in Europe and the U.S. talk tough on corporate tax dodging, several of their governments are helping multinationals lower tax bills. They have been cutting corporate rates, introducing laws that encourage tax avoidance, and rejecting proposals to close loopholes. Even amid growing public outrage in Europe against austerity policies, the gulf between rhetoric and reality on taxation means individuals rather than businesses are often bearing the brunt of higher taxes.

[xchrom]

3. Is the Fed Afraid to Regulate the Big Banks?

http://www.bloomberg.com/news/2013-05-12/is-the-fed-afraid-to-regulate-the-big-banks-.html

The skirmishing is almost over, the main armies almost assembled. Ahead is a great battle over the future of our financial system that could have more profound consequences than the Dodd-Frank legislation of 2010.

The battleground is the hearts and minds -- and fears -- of the seven people who make up the board of governors of the Federal Reserve System. The critical contest will be about bank capital and how large financial institutions should fund themselves. The fog of war has masked the terrain, so that even well-informed bank lobbyists don’t realize they have wandered into a potentially disadvantageous position.

It remains to be seen whether the Fed can make the most of this real opportunity for reform. Too many governors still seem encumbered by a flawed mental model of how megabanks work.

The headlines continue to focus on the international agreement regarding capital requirements -- known as Basel III - - and how it will be implemented in the U.S. There are interesting questions here, including what the Fed will decide regarding the so-called SIFI surcharge (the extra equity funding required for systemically important financial institutions).

***afraid? i'm not sure i think that's the right word.

[Demeter]

9. The word you are looking for is "complicit"

Good morning X!

I had a successful Mother's Day. The girls and I went to a real restaurant and had real food....so much that we had to bring half of it home. Then the younger daughter and I went to shop at the store we've been planning to hit since November: Burlington Coat Factory. Not only did we get winter coats at very good prices, we also got some light summer skirts and dresses for her and her sister. Fortunately, it all fit the Kid, so we don't have to take anything back.

And it frosted last night. I saw a bit of sleet while driving yesterday. I hope that the peach tree doesn't lose any pollinated fruit flowers....time will tell. I also hope that the commercial crops are undamaged. Crazy weather.

[xchrom]

11. oh i'm so glad your mother's day went well!

there are some very good deals to be found at burlington -- it's 1 of my fave scrounging spots.

it's cold here today as well -- it's caught me off guard.

[xchrom]

4. Argentina faces very different debt default if loses legal fight

http://uk.reuters.com/article/2013/05/13/uk-argentina-debt-idUKBRE94C0A920130513


(Reuters) - When Argentina defaulted on its debt in 2002, the economy was collapsing and a bloody popular revolt had helped topple two presidents in a week. Now, the country could default again, but it would be over a matter of principle rather than necessity.

After a decade of sleepy litigation, investors got a jolt late last year when U.S. courts ruled in favour of "holdout" creditors who had rejected Argentine debt exchanges in 2005 and 2010 and sued to be repaid in full on their defaulted bonds.

A U.S. judge ordered Argentina to pay the holdouts the full $1.33 billion (865.1 million pounds) owed them the next time it serviced restructured debt. Argentina appealed, and a ruling by the 2nd U.S. Circuit Court of Appeals is expected in the coming weeks.

Investors are following the case closely because Argentina appears willing to enter into technical default in order to avoid paying the holdouts any more than other creditors received.

[Demeter]

10. And nobody would blame them if they did

There's no reason the people should pay for a dictator's looting and fraud.

[xchrom]

5. Banks lead FTSE down from five-year high

http://uk.reuters.com/article/2013/05/13/uk-markets-britain-stocks-idUKBRE8710BE20130513

(Reuters) - Banks led Britain's blue chip shares down on Monday, with Standard Chartered among the top fallers, pushing the FTSE 100 index from 5-1/2 year highs after seven straight sessions of gains.

At 11:45 a.m. British time, the FTSE 100 index was down 13.05 points, or 0.2 percent, at 6,611.93. Financials alone took 20 points off the index and all of the five major banks were in the red. Banks fell 2.2 percent, having gained 11.33 percent since April 18.

Standard Chartered dropped 3.7 percent after a report that a U.S. hedge fund Carson Block has bet against the company because of the perceived health of its loan book.

"Carson Block is shorting Stan Chart debt because of "deteriorating" loan quality. Basically the bank is a play on China and emerging markets, so he is bearish on that region," Ronnie Chopra, strategist at TradeNext said.

[xchrom]

6. Chinese Gold Jewelry Sales Went Ballistic In April

http://www.businessinsider.com/chinese-gold-jewelry-sales-went-ballistic-in-april-2013-5

Within retail sales, there was one blistering number.
...the best performing segment was jewellery sales, which had more to do with savings rather than consumption. Following a sharp decline in the gold price, Chinese households’ purchase of jewellery surged 72% yoy in April, substantially faster than the 17.7% yoy in Q1. This gold rush contributed nearly 2ppt to the headline in April, up from about 1ppt in March.
As SocGen's own Kit Juckes notes in an email: &quot apparently, buying jewellery is a sign of saving, not consumption)."


Read more: http://www.businessinsider.com/chinese-gold-jewelry-sales-went-ballistic-in-april-2013-5#ixzz2TArruvPA



***i would only note this: in india, china, vietnam etc -- it's real gold{or silver} being bought and sold -- folks there seem less interested in paper gold -- i don't know how they feel about miners.

[AnneD]

28. Gold and silver ARE real money.....

It is fiat (paper) that is false. Possession of PM is a means to preserve your wealth.

What is crazy now is that the price is so low. Per Max Keiser, the ETF paper gold is flooding the market, thus lowering gold prices. But try as they might to flood the market with sales, has not and I think, will not go down as far as some people would like-there is just too much demand. It really is like a fire sale on gold and silver.

We don't see it in this country but over seas, folks are lined up and waiting to buy gold and silver. In India, it has been seen as your savings and retirement account for years. Even the poorest beggar woman in the street will have a gold bangle or two on her arm.

[xchrom]

7. JAPAN'S NIKKEI BUCKS THE TREND AS G7 HOLDS LINE

http://hosted.ap.org/dynamic/stories/W/WORLD_MARKETS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-05-13-06-51-06

LONDON (AP) -- Once again, Japan's stock market led the way Monday after representatives from the world's leading industrial economies refused to criticize the super-easy monetary policy of the Bank of Japan and the massive depreciation in the value of the yen it triggered.

The Nikkei's advance on Monday contrasts with the performance of much of Asia and a downbeat morning session in Europe. Investors elsewhere have been spooked by some moderately disappointing retail sales and industrial production data from China, the world's second-largest economy.

"The Chinese figures this morning weren't the end of the world, they were only marginally below market expectations," said Craig Erlam, market analyst at Alpari. "However, we've just had a four-day winning streak in most European indices, so investors will have been looking for an excuse to lock in profits."

Stocks have gained a lot of ground this year on a combination of reasons, including hopes over the U.S. economy, a seeming easing in Europe's debt crisis and continued support by the world's leading central banks. Many indexes, including Germany's DAX and the Dow in the U.S., have struck a series of all-time highs in recent weeks, while others such as the Nikkei have hit multi-year peaks.

[xchrom]

8. LEAVING BANGLADESH? NOT AN EASY CHOICE FOR BRANDS

http://hosted.ap.org/dynamic/stories/U/US_BANGLADESH_RETAILERS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-05-12-14-06-59

NEW YORK (AP) -- Bangladesh offers the global garment industry something unique: Millions of workers who quickly churn out huge amounts of well-made underwear, jeans and T-shirts for the lowest wages in the world.

But since a building collapse April 24 killed at least 1,100 garment workers in Bangladesh in one of the deadliest industrial tragedies in history, the country has gone from one of the industry's greatest assets to one of its biggest liabilities.

"The risk factors have jumped off the charts," said Julie Hughes, president of the U.S. Association of Importers of Textiles and Apparel, a trade group that represents retailers who import garments. "This is worse than what anyone had imagined."

Working conditions in Bangladesh's garment industry long have been known to be grim, a result of government corruption, desperation for jobs, and industry indifference. But the scale of this tragedy has raised alarm among executives and customers.

[Demeter]

12. How Austerity Kills By DAVID STUCKLER and SANJAY BASU MUST READ!

http://www.nytimes.com/2013/05/13/opinion/how-austerity-kills.html

FIRST FEW PARAGRAPHS GRUESOME READING

... The correlation between unemployment and suicide has been observed since the 19th century. People looking for work are about twice as likely to end their lives as those who have jobs.

In the United States, the suicide rate, which had slowly risen since 2000, jumped during and after the 2007-9 recession. In a new book, we estimate that 4,750 “excess” suicides — that is, deaths above what pre-existing trends would predict — occurred from 2007 to 2010. Rates of such suicides were significantly greater in the states that experienced the greatest job losses. Deaths from suicide overtook deaths from car crashes in 2009.

If suicides were an unavoidable consequence of economic downturns, this would just be another story about the human toll of the Great Recession. But it isn’t so. Countries that slashed health and social protection budgets, like Greece, Italy and Spain, have seen starkly worse health outcomes than nations like Germany, Iceland and Sweden, which maintained their social safety nets and opted for stimulus over austerity. (Germany preaches the virtues of austerity — for others.)

As scholars of public health and political economy, we have watched aghast as politicians endlessly debate debts and deficits with little regard for the human costs of their decisions. Over the past decade, we mined huge data sets from across the globe to understand how economic shocks — from the Great Depression to the end of the Soviet Union to the Asian financial crisis to the Great Recession — affect our health. What we’ve found is that people do not inevitably get sick or die because the economy has faltered. Fiscal policy, it turns out, can be a matter of life or death...

MORE--A VERY IMPORTANT, CONCISE PIECE--SHOULD BE SENT TO EVERY POLITICIAN IN THE NATION.

[xchrom]

13. US RETAIL SALES EDGE UP 0.1 PERCENT IN APRIL

http://hosted.ap.org/dynamic/stories/U/US_RETAIL_SALES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-05-13-08-38-58

WASHINGTON (AP) -- Americans increased their spending in April at retail businesses, buying more cars and clothes after cutting purchases in March. The Commerce Department says retail sales edged up 0.1 percent in April. That's an improvement from the 0.5 percent decline in March, the largest in nine months.

April sales were stronger when factoring out a drop in gas prices. Excluding gas station sales, retail spending rose 0.7 percent. And core retail sales, which strip out the volatile categories of gas, autos and building supplies, increased 0.5 percent.

The gain suggests consumers are still increasing their spending despite paying higher taxes this year. That could help boost economic growth.

[Demeter]

14. Student Debt and the Crushing of the American Dream By JOSEPH E. STIGLITZ

SEE CARTOON FOR ILLUSTRATION!

http://opinionator.blogs.nytimes.com/2013/05/12/student-debt-and-the-crushing-of-the-american-dream/

A CERTAIN drama has become familiar in the United States (and some other advanced industrialized countries): Bankers encourage people to borrow beyond their means, preying especially on those who are financially unsophisticated. They use their political influence to get favorable treatment of one form or another. Debts mount. Journalists record the human toll. Then comes bewilderment: How could we let this happen again? Officials promise to fix things. Something is done about the most egregious abuses. People move on, reassured that the crisis has abated, but suspecting that it will recur soon.

The crisis that is about to break out involves student debt and how we finance higher education. Like the housing crisis that preceded it, this crisis is intimately connected to America’s soaring inequality, and how, as Americans on the bottom rungs of the ladder strive to climb up, they are inevitably pulled down — some to a point even lower than where they began....Everyone recognizes that education is the only way up, but as a college degree becomes increasingly essential to making one’s way in a 21st-century economy, education for those not to the manner born is increasingly unaffordable. Student debt for graduating seniors now exceeds $26,000, about a 40 percent increase in just seven years. But an “average” like this masks huge variations.

According to the Federal Reserve Bank of New York, almost 13 percent of student-loan borrowers of all ages owe more than $50,000, and nearly 4 percent owe more than $100,000. These debts are beyond students’ ability to repay, (especially in our nearly jobless recovery); this is demonstrated by the fact that delinquency and default rates are soaring. Some 17 percent of student-loan borrowers were 90 days or more behind in payments at the end of 2012. When only those in repayment were counted — in other words, not including borrowers who were in loan deferment or forbearance — more than 30 percent were 90 days or more behind. For federal loans taken out in the 2009 fiscal year, three-year default rates exceeded 13 percent.

America is distinctive among advanced industrialized countries in the burden it places on students and their parents for financing higher education. America is also exceptional among comparable countries for the high cost of a college degree, including at public universities. Average tuition, and room and board, at four-year colleges is just short of $22,000 a year, up from under $9,000 (adjusted for inflation) in 1980-81....America — home of the land-grant university, the G.I. Bill and world-class public universities from California to Michigan to Texas — has fallen from the top in terms of university education. With strangling student debt, we are likely to fall further. What economists call “human capital” — investing in people — is a key to long-term growth. To be competitive in the 21st century is to have a highly educated labor force, one with college and advanced degrees. Instead, we are foreclosing on our future as a nation....Some wonder how the American ideal of equality of opportunity has eroded so much. The way we finance higher education provides part of the answer. Student debt has become an integral part of the story of American inequality. Robust higher education, with healthy public support, was once the linchpin in a system that promised opportunity for dedicated students of any means. We now have a pay-to-play, winner-take-all game where the wealthiest are assured a spot, and the rest are compelled to take a gamble on huge debts, with no guarantee of a payoff....

ANOTHER IMPORTANT PIECE

[xchrom]

15. DERBY WINNER ORB IMPRESSES WITH WORKOUT AT BELMONT

http://hosted.ap.org/dynamic/stories/R/RAC_PREAKNESS_ORB?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-05-13-08-24-47

NEW YORK (AP) -- Kentucky Derby winner Orb has completed his final workout before the Preakness Stakes, breezing four furlongs in 47.18 seconds at Belmont Park.

With exercise rider Jennifer Patterson aboard, Orb moved effortlessly around the track Monday morning. The time is considered fast for a final work before a big race.

Shug McGaughey was elated with what he saw. The trainer said the way Orb went "nice and relaxed, came home on his own, galloped out the way he did, dropped his head and walked home sent cold chills up my back.

"'I'm on Cloud 9. I couldn't be more thrilled."

[xchrom]

16. EURO FINANCE MINISTERS TO DISCUSS ITALY, PORTUGAL

http://hosted.ap.org/dynamic/stories/E/EU_EUROPE_FINANCIAL_CRISIS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-05-13-08-45-25

BRUSSELS (AP) -- European finance ministers are set to discuss on Monday the economic plans of Italy's new government and assess the outlook for bailed-out countries like Portugal, Greece and Cyprus.

The finance chiefs of the 17 countries that use the euro were gathering in Brussels amid a relative lull in the bloc's three-year debt crisis.

Diplomats say the ministers are expected to approve the next batch of 7.5 billion euros ($10 billion) in bailout loans for Greece. They are not, however, likely to release more aid for Portugal because they are waiting for Lisbon's latest austerity measures to be cleared by parliament.

The ministers will also meet their new Italian counterpart, Fabrizio Saccomanni, who is expected to brief them on his government's economic and financial policies. Italy has the eurozone's third-largest economy.

[Demeter]

17. Truth hurts

[Demeter]

18. Shocking!

[xchrom]

20. !

[westerebus]

25. GO WALLEY !!!

[xchrom]

19. SPAIN, PORTUGAL MEET TO FIND WAYS TO HELP ECONOMY

http://hosted.ap.org/dynamic/stories/E/EU_SPAIN_PORTUGAL_?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-05-13-06-28-16

MADRID (AP) -- Spain and Portugal's premiers are meeting to discuss the economic turmoil plaguing their countries and the measures the European Union should take to ease the crisis.

Monday's bilateral government summit in Madrid comes ahead of a gathering of European finance ministers in Brussels in which Spain's and Portugal's problems will be high on the agenda.

Spanish leader Mariano Rajoy and Portugal's Pedro Passos Coelho will likely call on the EU to move swiftly to create a regional banking union and to slow down budget cuts to help the economy grow.

Spain has been in recession for most of the past four years and has a record 27.2 percent unemployment rate. Portugal, with a 17.7 percent jobless rate, is one of four eurozone countries to have received a sovereign bailout.

[xchrom]

21. LIECHTENSTEIN READY TO RELAX BANKING SECRECY

http://hosted.ap.org/dynamic/stories/E/EU_LIECHTENSTEIN_TAX_EVASION?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-05-13-07-08-16

BERLIN (AP) -- Liechtenstein's prime minister says the principality is prepared to discuss an automatic exchange of bank client information with the European Union.

Adrian Hasler told German daily Handelsblatt in an interview published Monday that the tiny Alpine nation would consider following the lead of Austria and Luxembourg.

The two countries have come under heavy pressure to help fellow members of the 27-nation EU crack down on tax evaders. Liechtenstein is not a member of the EU.

Hasler says a precondition for further relaxing Liechtenstein's banking secrecy rules would be that existing clients are offered a "bridge to tax honesty" that spares them hefty fines or prison time.

[Demeter]

22. Wasn't that just too cute for words?

That last minute, 50 point "goose" of the DOW at 3:45 on a Friday night, just so some lucky SOB could hold the winning bingo number and the index would show a gain....when are they gonna come clean on that? It's like the LIBOR, I am positive.

[AnneD]

23. Thank you for the toon....

I remember trying to get my career started the first time I graduated. It was hard convincing companies I could do a good job, esp since I had no experience. It was a little bit easier after I went to Nursing school, but the market for Nurses dried up after I graduated and some of my school friends never did find a job before their skills atrophied.

My daughter is facing the same problem now. Hers is compounded by the fact that she is in another country. She called last night and we brain stormed some ideas, but it is never easy. I will try to help her a bit with the loans but she is going through a rough time. The first "I am an adult now and I should be able to handle this crisis". She is smart and I have no doubt things will be ok, but she just has to learn how to handle life on plan B.

Edited to add...Mom has pulled a Mark Twain on her child...."When I was a boy of 14, my father was so ignorant I could hardly stand to have the old man around. But when I got to be 21, I was astonished at how much the old man had learned in seven years." -Mark Twain

[xchrom]

24. 'Violation of Treaties': Berlin Wary of ECB Plan to Help Southern Europe

http://www.spiegel.de/international/europe/germany-wary-of-ecb-plan-to-buy-asset-backed-securities-a-899495.html

German Finance Minister Wolfgang Schäuble and European Central Bank head Mario Draghi have never seemed particularly eager to avoid conflict with one another. Just in January, the two got into a mini war-of-words over the need to bail out Cyprus, with Schäuble openly questioning whether the country was systemically relevant.

Now, the two are at odds again. SPIEGEL has learned that Schäuble is deeply critical of an ECB idea to purchase asset-backed securities, fearing that the plan could be little more than "obscured state financing," a no-no for the ECB. Schäuble made his remarks at a breakfast of conservative lawmakers last Wednesday, according to sources present. Schäuble said that such a plan would violate European Union treaties.
The motivation for considering such a move is clear. The ECB is eager to stimulate bank lending, particularly in Southern European countries where the debt crisis has made banks wary of issuing loans. But Schäuble is concerned that an ECB program of buying asset-backed securities could amount to the bank taking over some €70 billion in debt owed by Italy to private creditors.

Schäuble was backed on Monday by Hans Michelbach, the top conservative in the Finance Committee in parliament. "After the extremely questionable ECB purchase of sovereign bonds, this would be a clear violation of European treaties," Michelbach said, according to German news agency DPA. There are, he said, apparently some people in the ECB leadership "who consider the ECB to be the Bad Bank of Southern Europe."

[xchrom]

26. China's industrial output increase disappoints

http://www.bbc.co.uk/news/business-22508472

Industrial production in China recorded a smaller-than-expected rise in April, underlining worries that the economy may be losing steam.

Output rose 9.3% from a year ago, which was up from March's figure of 8.9% but below market forecasts for a 9.5% rise.

Fixed-asset investment also weakened in the first four months of 2013.

Last week, a separate survey suggested that manufacturing activity, a subset of industrial production, grew at a slower pace in April.

[xchrom]

27. 27% of Spaniards are out of work. Yet in one town everyone has a job

http://www.independent.co.uk/news/world/europe/27-of-spaniards-are-out-of-work-yet-in-one-town-everyone-has-a-job-8612920.html



As Spanish unemployment reaches another record high, the residents of rural Marinaleda could be forgiven for feeling a little smug.

In the small village in deepest Andalusia, the joblessness remains firmly – and almost certainly uniquely within Spain – at zero. With one set of traffic lights, two bars (one jammed with football paraphernalia for the First Division side Seville) and one central avenue lined with of low terraced houses, Marinaleda looks like many villages in western Andalusia.

But huge wall murals depicting the destruction of tanks and weaponry, the binning of Nazi symbols, and a column of workers marching through the fields, are far from the usual graffiti found in such places. Nor do many villages name their sports hall after Che Guevara, or have oversized placards of doves of peace dotted on streets named after left-wing heroes such as Salvador Allende and Pablo Neruda.

Marinaleda is run along the lines of a communist Utopia and boasts collectivised lands (1,200 previously unused hectares, seized by a mass land-grab in 1990 from an aristocrat’s estate) which offer every villager the opportunity to work the fields, tending to root crops and olive groves. In Andalusia, where jobs are currently being lost at the rate of about 500 a day, any work is good work.

[Demeter]

29. DU rec for Andalusia and the people of Marinaleda!

May we all have similar outcomes around the world!

[bread_and_roses]

30. 2nd that - many many many times (n/t)