Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

Tansy_Gold

(17,816 posts)
Sun Apr 19, 2015, 07:55 PM Apr 2015

STOCK MARKET WATCH -- Monday, 20 April 2015

[font size=3]STOCK MARKET WATCH, Monday, 20 April 2015[font color=black][/font]


SMW for 17 April 2015

AT THE CLOSING BELL ON 17 April 2015
[center][font color=red]
Dow Jones 17,826.30 -279.47 (-1.54%)
S&P 500 2,081.18 -23.81 (-1.13%)
Nasdaq 4,931.81 -75.98 (-1.52%)


[font color=green]10 Year 1.87% -0.03 (-1.58%)
30 Year 2.52% -0.07 (-2.70%) [font color=black]


[center]
[/font]


[HR width=85%]



[font size=2]Market Conditions During Trading Hours[/font]
[center]
(click on link for latest updates)
Market Updates
[/center]



[font size=2]Euro, Yen, Loonie, Silver and Gold[center]

[/center]


[center]

[/center]


[HR width=95%]


[font color=black][font size=2]Handy Links - Market Data and News:[/font][/font]
[center]
Economic Calendar
Marketwatch Data
Bloomberg Economic News
Yahoo Finance
Google Finance
Bank Tracker
Credit Union Tracker
Daily Job Cuts
[/center]





[font color=black][font size=2]Handy Links - Essential Reading:[/font][/font]
[center]
Matt Taibi: Secret and Lies of the Bailout


[/center]



[font color=black][font size=2]Handy Links - Government Issues:[/font][/font]
[center]
LegitGov
Open Government
Earmark Database
USA spending.gov
[/center]




[div]
[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.
08/01/13 Fabrice Tourré convicted on six counts of security fraud, including "aiding and abetting" his former employer, Goldman Sachs
08/14/13 Javier Martin-Artajo and Julien Grout charged with wire fraud, falsifying records, and conspiracy in connection with JP Morgan's "London Whale" trade.
08/19/13 Phillip A. Falcone, manager of hedge fund Harbinger Capital Partners, agrees to admit to "wrongdoing" in market manipulation. Will banned from securities industry for 5 years and pay $18MM in disgorgement and fines.
09/16/13 Javier Martin-Artajo and Julien Grout officially indicted on charges associated with "London Whale" trade.
02/06/14 Matthew Martoma convicted of insider trading while at hedge fund SAC (Stephen A. Cohen) Capital Advisors. Expected sentence 7-10 years.
03/24/14 Annette Bongiorno, Bernard Madoff's secretary; Daniel Bonventre, director of operations for investments; JoAnn Crupi, an account manager; and Jerome O'Hara and George Perez, both computer programmers convicted of conspiracy to defraud clients, securities fraud, and falsifying the books and records.
05/19/14 Credit Suisse, which has an investment bank branch in NYC, agrees to plead guilty and pay appx. $2.6 billion penalties for helping wealthy Americans hide wealth and avoid taxes.
09/08/14 Matthew Martoma, convicted SAC trader, sentenced to 9 years in prison plus forfeiture of $9.3 million, including home and bank accounts







[HR width=95%]


[center]

[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]


26 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
STOCK MARKET WATCH -- Monday, 20 April 2015 (Original Post) Tansy_Gold Apr 2015 OP
Dotted lines gone Tansy_Gold Apr 2015 #1
I'm thinking you're probably right. Fuddnik Apr 2015 #2
they can try.... Demeter Apr 2015 #6
Greek Finance Minister Yanis Varoufakis TV interview (Spanish/English) Ghost Dog Apr 2015 #3
China's latest RRR cut to help maintain stable liquidity - People's Daily Ghost Dog Apr 2015 #4
Chelsea Manning and the Deepwater Horizon Killings By Greg Palast Demeter Apr 2015 #5
U.S. lawmakers' bill holds key to Pacific trade deal Demeter Apr 2015 #7
Japan, U.S. try to break trade-deal deadlock: Japan, U.S. continue talks over TPP rice, autos Demeter Apr 2015 #11
57 nations approved as founder members of China-led AIIB Demeter Apr 2015 #8
EVICTED AND ABANDONED: How The World Bank Broke Its Promise To Protect The Poor Demeter Apr 2015 #9
DEFINTION OF CHUTZPAH: Draghi Says Urgent Need for Greece to Strike Bailout Deal Demeter Apr 2015 #10
FCA criticizes Deutsche Bank over Libor Demeter Apr 2015 #12
G20 to deal with weaknesses at clearing houses Demeter Apr 2015 #13
EU prepares rules for tackling failed financial firms outside banking Demeter Apr 2015 #14
Risk of sharp reversal remains: global financial overseer Carney Demeter Apr 2015 #15
GE holds talks with sovereign wealth funds for sale of finance assets Demeter Apr 2015 #16
Ex-governor Corzine discussing plans to start hedge fund, report says Demeter Apr 2015 #17
Bloomberg outage hits financial markets Demeter Apr 2015 #18
In local news... Demeter Apr 2015 #19
The Continuing Depopulation of Detroit Demeter Apr 2015 #23
Bankruptcies Suddenly Soar Across Corporate America, Worst First Quarter Since 2009 by Wolf Richter Demeter Apr 2015 #20
Since Mitt Romney has nothing better to do nowadays..... Fuddnik Apr 2015 #21
This should prove to be an interesting week (NOT) MattSh Apr 2015 #22
I can't go on posting--Detroit's story has ripped my inner resources out Demeter Apr 2015 #24
Oh, yes, let's shoot that DJIA up with smack: up 180 points at the open Demeter Apr 2015 #25
gotta make up for Friday DemReadingDU Apr 2015 #26
 

Demeter

(85,373 posts)
6. they can try....
Mon Apr 20, 2015, 06:20 AM
Apr 2015

but unless the recent supply destruction (or delay) exceeds the ongoing demand destruction, it won't hold. OPEC and the outside oil nations haven't succeeded in re-rigging the price, yet, either. At least, not as far as my research can tell.

There's the thrill or terror of war in the Middle East, but unless they all lose their minds over there (with State Department connivance) it will be less than a blip in the long-term price decline of the economy's life-blood.

And demand is still being destroyed. Nobody's economy has even made an attempt at resurrection and we are weeks past Easter, least of all, the US.

 

Ghost Dog

(16,881 posts)
3. Greek Finance Minister Yanis Varoufakis TV interview (Spanish/English)
Mon Apr 20, 2015, 03:48 AM
Apr 2015

Last edited Mon Apr 20, 2015, 04:44 AM - Edit history (3)

Greece's Finance Minister Yanis Varoufakis said in an interview broadcast on Sunday that if Greece were to leave the euro zone, there would be an inevitable contagion effect.

"Anyone who toys with the idea of cutting off bits of the euro zone hoping the rest will survive is playing with fire," he told La Sexta, a Spanish TV channel, in an interview recorded 10 days ago.

"Some claim that the rest of Europe has been ring-fenced from Greece and that the ECB has tools at its disposal to amputate Greece, if need be, cauterize the wound and allow the rest of euro zone to carry on."

"I very much doubt that that is the case. Not just because of Greece but for any part of the union," he said, speaking in English.

"Once the idea enters peoples' minds that monetary union is not forever, speculation begins ... who's next? That question is the solvent of any monetary union. Sooner or later it's going to start raising interest rates, political tensions, capital flight."...

/... http://www.smh.com.au/business/markets-live/markets-live-china-fails-to-save-the-day-20150420-1molec.html (towards bottom of page)
________

This is a first class lengthy interview with Yanoufakis in which he very calmly and clearly states and explains his positions. The questions are in Spanish and Yanoufakis's replies are in English with Spanish subtitles. More work needs to be done to subtitle the Spanish questions in English, and La Sexta / Atresmedia has material here that can be widely sold internationally. Highly recommended.

You can see some extracts here: http://www.lasexta.com/programas/salvados/mejores-momentos/yanis-varoufakis-obedezco-representante-aleman-eurogrupo-creo-que-nadie-hace_2015041900185.html
And the whole interview here: http://www.atresplayer.com/television/programas/salvados/temporada-10/capitulo-8-varoufakis-ministro-finanzas-griego_2015041800089.html

________

And note that, from such an expansive, wide-ranging and sincere interview on Greek, European and international financial issues, this is the only snippet the Anglo-American propaganda source Thomson-Reuters, which acts as a mouthpiece of economic neo-liberal and political neo-conservative interests, chooses to widely channel...

 

Ghost Dog

(16,881 posts)
4. China's latest RRR cut to help maintain stable liquidity - People's Daily
Mon Apr 20, 2015, 04:42 AM
Apr 2015

(Reuters) - The latest cut by China's central bank in the amount of cash that lenders must hold as reserves will help keep liquidity stable, according to a commentary in the ruling Communist Party's official People's Daily on Monday.

The move, announced late on Sunday, will also help pump cash into the real economy and ensure financing costs remain steady, according to the commentary in the paper, which acts as a mouthpiece of the Party.

The People's Bank of China (PBOC) lowered the reserve requirement ratio (RRR) for all banks by 100 basis points to 18.5 percent, effective from April 20, the central bank said in a statement on its website www.pbc.gov.cn.

The latest cut, the deepest single reduction since the depth of the global crisis in 2008, shows how the central bank is stepping up efforts to ward off a sharp slowdown in the economy...

/... http://uk.reuters.com/article/2015/04/20/uk-china-economy-rrr-idUKKBN0NA0AL20150420

 

Demeter

(85,373 posts)
5. Chelsea Manning and the Deepwater Horizon Killings By Greg Palast
Mon Apr 20, 2015, 06:14 AM
Apr 2015
http://us4.campaign-archive1.com/?u=33e4ec877eed6a43863a4a92e&id=4365f6f9cf&e=e1f72e415c

Five years ago Monday, 11 men died on the Deepwater Horizon oil rig — despite Chelsea Manning’s effort to save their lives. The military whistleblower’s 2010 Wikileaks dump included information that could have saved the 11 BP workers who died that spring in the Gulf of Mexico oil rig disaster.

The BP drilling rig blew itself to Kingdom Come after the “mud” — the cement used to cap the well — blew out. The oil company, the federal government and the industry were shocked — shocked! — at this supposedly unexpected explosion in the deep waters of the Gulf of Mexico. But BP knew, and Exxon and Chevron knew, and the U.S. State Department knew, that just 17 months earlier another BP offshore rig had suffered an identical, disastrous blow-out halfway across the planet in the Caspian Sea. In both the Gulf and Caspian blow-outs, the immediate culprit was the failure of the cement, in both cases caused by the use — misuse — of nitrogen in the cement mix, a money-saving but ultimately deadly measure intended to speed the cement’s drying. The cover-up meant that U.S. regulators, the U.S. Congress and the public had no inkling that the cost-saving “quick-dry” cement process had failed on an offshore rig only a year before the Deepwater Horizon blew.
.

But Pvt. Chelsea (formerly Bradley) Manning tried to warn us. The details of the Caspian Sea blow-out off the coast of Baku, Azerbaijan, were revealed in the secret State Department cables Manning released in December 2010 through Wikileaks. Cables from the U.S. ambassador relayed a summary of confidential meetings in which BP’s top Azeri executive confided that their big Caspian offshore rig suffered a “blow-out” in September 2008 leading to the “largest such emergency evacuation in BP's history” — its likely cause "a bad cement job.” The message was relayed to Washington after BP’s American partners in the Caspian, Exxon and Chevron, asked the State Department to find out why BP had ceased to drill in the Caspian, costing them all millions. State, then headed by former Chevron board member Condoleezza Rice, got the oil chiefs their answer – then joined them in keeping it secret.

Not knowing about the Manning cables, I had to find out about the Caspian blow-out the hard way. Just days after the Deepwater Horizon blow-out, I received a tip from an eyewitness to the Caspian disaster. To check out the facts, I flew to Baku, where my British TV crew and I found ourselves placed under arrest by a team of goons from the Azerbaijan secret police, the military and some of BP’s oil-well-insignia-sporting private security clowns. As a reporter for British Television, I was quickly released — with the film of the bust captured on my little pen camera. But, terribly, two of my rig-worker witnesses disappeared.

Had BP or the State Department 'fessed up to the prior blow-out — a disclosure required by U.S. and British regulations — it is exceptionally unlikely that BP would have been allowed to use the quick-dry cement method in the deep Gulf of Mexico. Indeed, there may have been a complete prohibition on the drilling, because Department of Interior experts had opposed deep drilling in that part of the Gulf. To lobby the government to allow drilling there, just six months before the Deepwater Horizon blew, BP executive David Rainey and the presidents of Exxon USA and Chevron testified before Congress that offshore drilling had been conducted for 50 years “in a manner both safe and protective of the environment.”

It is hard to imagine the oil companies defeating the Interior experts had the executives admitted to the recent blow-out in the Caspian Sea.

Ultimately, Rainey was indicted for the crime of making false statements to Congress on a lesser matter. However, indicting the executives for concealing the earlier blow-out was not possible because our own State Department participated in the cover-up. And that’s what Manning exposed — though not quickly enough to save those 11 lives. Pvt. Manning may not have known about the specific memo of the secret meeting of State and BP. It was one in an ocean of cables she released. But Manning knew this: The truth can save lives. Or, as Manning was brought up to believe: The truth shall set us free. And if truth sets us free, then official secrets enslave us.

Barack Obama and John Boehner and Mitch McConnell know this. So do Hillary Clinton, Ted Cruz, Marco Rubio and the other candidates for Secret-Keeper-in-Chief. Years ago, Daniel Ellsberg told me that he was surprised when Judge Stanley Sporkin dismissed all charges against him although Ellsberg had revealed top-secret military intelligence, the Pentagon Papers. The judge noted that the U.S. was unique among nations in having no “official secrets act,” no law against telling the truth to the public. No more. The brutal 35-year prison sentence for Manning on espionage charges and the continuing manhunt for Edward Snowden makes it clear that the Obama administration considers truth-telling a crime. As I see it, the State Department officials who withheld BP’s blow-out secret are as culpable as the oil company in the deaths of those 11 workers on the Deepwater Horizon. You can say that the men who died on the rig were victims of the corporate-government enslavement of information, martyrs to official secrecy.


Read Greg Palast's Deepwater Horizon investigation in full in his book Vultures’ Picnic. The investigation was also broadcast on Britain’s Channel 4 Dispatches.
 

Demeter

(85,373 posts)
7. U.S. lawmakers' bill holds key to Pacific trade deal
Mon Apr 20, 2015, 06:25 AM
Apr 2015
http://www.reuters.com/article/2015/04/16/usa-trade-idUSL2N0XD19C20150416

Senior U.S. lawmakers reached agreement on Thursday on a bill to give the White House "fast track" authority to negotiate a trade pact with 11 other Pacific nations that is central to President Barack Obama's strategic shift toward Asia. The agreement, over six months in the making, sets the stage for a tough legislative battle over the rules for Obama's proposed Trans-Pacific Partnership (TPP). The pact would connect a dozen economies by cutting trade barriers and harmonizing standards covering two-fifths of the world economy and a third of global trade. The bill gives lawmakers the right to set negotiating objectives, but would restrict them to a yes-or-no vote on trade deals such as the TPP, a potential legacy-defining achievement for President Obama.

The Obama administration announced in late 2009 that it was entering TPP negotiations with Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The U.S. Trade Representative calls the negotiation the "cornerstone" of Obama's Asia-Pacific economic policy. It also is important to U.S. manufacturers and farmers eager to expand already significant sales to the region by winning lower tariffs and other breaks.

U.S. labor unions that are active supporters of Democratic politicians fear the deal will favor big U.S. corporations at the expense of American jobs and tougher foreign safety and environmental standards. While trade associations and companies such as Intel Corp , Emerson Electric Co and Microsoft Corp welcomed the move, unions immediately announced a new advertising campaign to pressure lawmakers. Similar arguments raged in the run-up to the 1993 congressional approval of the North American Free Trade Agreement between the United States, Canada and Mexico. Twenty-two years later there is still a debate over that deal, which badly split the Democratic Party and was passed in the House of Representatives by a narrow 234-200 vote. The bill also faces opposition from some conservative Republicans opposed to delegating power to the White House.

The Obama administration has faced pressure to make progress on the TPA bill ahead of a meeting between Obama and Japanese Prime Minister Shinzo Abe on April 28 in Washington. Japanese and U.S. officials met this week in Tokyo in a bid to strike a two-way deal giving momentum to the pact. Japanese officials have said success depends on whether the U.S. Congress approves fast-track measures to ease passage of trade deals, or trade promotion authority (TPA). Japan and other TPP countries have said fast-track authority would give trading partners certainty that agreements will not be picked apart.

"This is a smart, bipartisan compromise that will help move America forward," Republican Senate Finance Committee Chairman Orrin Hatch said after leaders of Congress's tax-writing committees reached agreement on the legislation, which will be introduced in the Senate and House of Representatives.



TPP must pass Congress this year to avoid being bogged down in the run-up to the 2016 U.S. elections where it could put Hillary Clinton, who is seeking the Democratic nomination for president, in a difficult spot....As a former member of the Obama administration, she needs to walk a tightrope between supporting her former boss and warning of the need for tougher trade deals. Her husband, former President Bill Clinton, oversaw passage of the NAFTA deal that many unions loathe.

****************************************************

"You can't fast track fast track - that's a complete abdication of our responsibilities," said Ohio Democrat Sherrod Brown.
 

Demeter

(85,373 posts)
11. Japan, U.S. try to break trade-deal deadlock: Japan, U.S. continue talks over TPP rice, autos
Mon Apr 20, 2015, 06:56 AM
Apr 2015

Japanese and U.S. negotiators went back to the bargaining table in an effort break a standoff blocking progress on the Trans-Pacific Partnership trade deal. The U.S. wants Japan to dramatically increase its U.S. rice imports. Japan wants the U.S. to eliminate a 2.5% tariff on imported auto parts...


http://mainichi.jp/english/english/newsselect/news/20150420p2g00m0bu028000c.html

Japanese and U.S. trade chiefs continued negotiations Monday that could pave the way for concluding a 12-country Pacific free trade deal, trying to find common ground on the biggest sticking issues of rice imports and auto tariffs.

The two-day meeting between Japan's Economic and Fiscal Policy Minister Akira Amari and U.S. Trade Representative Michael Froman through Monday comes ahead of their leaders' summit planned on April 28 in Washington, where the Trans-Pacific Partnership initiative will be one of the key agenda items.

According to negotiation sources, Japan is now considering increasing its imports of U.S. rice by 50,000 tons as part of an exceptional imports quota of less than 100,000 tons that would be applied to all 10 other TPP countries including Australia, Malaysia and Vietnam....

DO YOU KNOW WHY JAPAN MAY UNGRACIOUSLY CONCEDE TO THIS DEMAND?

FUKUSHIMA HAS POISONED THE BEST JAPANESE RICE FIELDS FOR ETERNITY, OR AT LEAST, THE FORESEEABLE FUTURE. OF COURSE, IF THE CALIFORNIA DROUGHT REDUCES THE PRODUCTION OF RICE....THEN WE ARE ALL TOAST, AND FOR NO DAMN GOOD REASON. OF COURSE, US CORPORATED GREED MAY YET SAVE THE DAY....

...But the proposed amount is far less than requested by the United States, which is urging Japan to expand its imports of U.S. rice by 215,000 tons per year including product for processed use, the sources said.

 

Demeter

(85,373 posts)
8. 57 nations approved as founder members of China-led AIIB
Mon Apr 20, 2015, 06:26 AM
Apr 2015
http://www.scmp.com/news/china/diplomacy-defence/article/1766970/sweden-israel-poland-and-south-africa-last-join-aiib

The China-led Asian Infrastructure Investment Bank (AIIB) has officially approved 57 nations as prospective founding members, with Sweden, Israel, South Africa, Azerbaijan, Iceland, Portugal and Poland the latest to be included.

The AIIB is the first Asian-based international bank to be independent from the Western-dominated Bretton Woods institutions, the International Monetary Fund (IMF) and the World Bank.

Countries accepted as AIIB founding members include China, India, Malaysia, Indonesia, Singapore, Saudi Arabia, Brunei, Myanmar, the Philippines, Pakistan, Britain, Australia, Brazil, France, Germany and Spain.

However, long-time rival Taiwan was left off the list of founding members despite expressing a desire to join, the Ministry of Finance said yesterday...MORE



NOTE: ADB IS ASIA DEVELOPMENT BANK: http://en.wikipedia.org/wiki/Asian_Development_Bank

The Asian Development Bank (ADB) is a regional development bank established on 22 August 1966 which is headquartered in Metro Manila, Philippines, to facilitate economic development in Asia. The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP, formerly the Economic Commission for Asia and the Far East or ECAFE) and non-regional developed countries. From 31 members at its establishment, ADB now has 67 members, of which 48 are from within Asia and the Pacific and 19 outside. The ADB was modeled closely on the World Bank, and has a similar weighted voting system where votes are distributed in proportion with members' capital subscriptions.

At the end of 2013, Japan holds the largest proportion of shares at 15.67%. The United States holds 15.56%, China holds 6.47%, India holds 6.36%, and Australia holds 5.81%.

The highest policy-making body of the bank is the Board of Governors, composed of one representative from each member state. The Board of Governors, in turn, elect among themselves the twelve members of the Board and their deputy. Eight of the twelve members come from regional (Asia-Pacific) members while the others come from non-regional members.

The Board of Governors also elect the bank's president, who is the chairperson of the Board of Directors and manages ADB. The president has a term of office lasting five years, and may be reelected. Traditionally, and because Japan is one of the largest shareholders of the bank, the president has always been Japanese.

The most recent president was Takehiko Nakao, who succeeded Haruhiko Kuroda in 2013.

The headquarters of the bank is at 6 ADB Avenue, Mandaluyong City, Metro Manila, Philippines, and it has representative offices around the world. The bank employs 3,051 people, of which 1,463 (48%) are from the Philippines...

The ADB offers "hard" loans from ordinary capital resources (OCR) on commercial terms, and the Asian Development Fund (ADF) affiliated with the ADB extends "soft" loans from special fund resources with concessional conditions. For OCR, members subscribe capital, including paid-in and callable elements, a 50% paid-in ratio for the initial subscription, 5% for the Third General Capital Increase (GCI) in 1983 and 2% for the Fourth General Capital Increase in 1994. The ADB borrows from international capital markets with its capital as guarantee.

In 2009, ADB obtained member-contributions for its Fifth General Capital Increase of 200%, in response to a call by G20 leaders to increase resources of multilateral development banks so as to support growth in developing countries amid the global financial crisis. For 2010 and 2011, a 200% GCI allows lending of $12.5 billion to 13 billion in 2010 and about $11 billion in 2011. With this increase, the bank's capital base tripled from $55 billion to $165 billion.


ANOTHER LITTLE PLUM ELITE EMPLOYER...THAT UNTIL NOW FLOATED UNDER THE RADAR
 

Demeter

(85,373 posts)
9. EVICTED AND ABANDONED: How The World Bank Broke Its Promise To Protect The Poor
Mon Apr 20, 2015, 06:33 AM
Apr 2015
http://projects.huffingtonpost.com/worldbank-evicted-abandoned

...The Lagos state government flattened Badia East in February 2013 to clear land in an urban renewal zone financed by the World Bank, the global lender committed to fighting poverty. The neighborhood’s poor residents were cast out without warning or compensation and left to fend for themselves in a crowded, dangerous city. Evictions like the one in Badia East aren’t supposed to happen in the middle of projects backed by the World Bank.

For more than three decades, the lender has maintained a set of “safeguard” policies that it claims have brought about a more humane and democratic system of economic development. Governments that borrow money from the bank can’t force people from their homes without warning. Families evicted to make way for dams, power plants or other big projects must be resettled and their livelihoods restored. The bank’s commitment, it says, is to “do no harm” to people or the environment. The World Bank has broken its promise. Over the past decade, the bank has regularly failed to enforce its rules, with devastating consequences for some of the poorest and most vulnerable people on the planet, an investigation by the International Consortium of Investigative Journalists, The Huffington Post and other media partners has found.

The World Bank often neglects to properly review projects ahead of time to make sure communities are protected, and frequently has no idea what happens to people after they are removed. In many cases, it has continued to do business with governments that have abused their citizens, sending a signal that borrowers have little to fear if they violate the bank’s rules, according to current and former bank employees.

“There was often no intent on the part of the governments to comply — and there was often no intent on the part of the bank’s management to enforce,” said Navin Rai, a former World Bank official who oversaw the bank’s protections for indigenous peoples from 2000 to 2012. “That was how the game was played.”


MUCH MORE
 

Demeter

(85,373 posts)
10. DEFINTION OF CHUTZPAH: Draghi Says Urgent Need for Greece to Strike Bailout Deal
Mon Apr 20, 2015, 06:51 AM
Apr 2015
Mario Draghi, president of the European Central Bank, says Greece needs to work harder and faster to fix financial and economic problems. "More work, I say much more work is needed now. And it's urgent," he said. "In general, a strong policy package that produces growth, fairness, fiscal sustainability and financial stability."

AND WHO IMPOSED THOSE PROBLEMS ON GREECE, MARIO? COULD IT BE THE ECB, IMF AND EC, THE INFAMOUS TROIKA, I MEAN, INSTITUTIONS?

http://www.bloomberg.com/news/articles/2015-04-18/ecb-s-draghi-says-urgent-that-greece-strikes-deal-with-creditors

European Central Bank President Mario Draghi urged Greece to work quickly toward an agreement with its creditors to curb a deepening financial crisis and quash doubts over its membership of the euro. Even as he warned investors against dumping the single currency, Draghi said Prime Minister Alexis Tsipras’s government must do “much more work” to show it can satisfy the terms of its 240 billion-euro ($259 billion) bailout program.

“It’s urgent,” Draghi told reporters in Washington on Saturday during meetings of the International Monetary Fund. “We all want Greece to succeed. The answer is in the hands of the Greek government.”


Draghi made his call for action after Greek government bonds suffered their worst week since Tsipras’s January election. The government’s anti-austerity rhetoric is clashing with demands from its European peers to take more steps to revamp its debt-laden economy before they will release another tranche of aid. At stake is Greece’s ability to avoid defaulting on its debts and stay in the 19-nation euro area. The brinkmanship overshadowed the Washington talks of global finance chiefs as delegates from outside of the euro area urged a speedy resolution.

“We have been clear in our conversations with all parties there is an urgent need to come together around a comprehensive approach,” U.S. Treasury Secretary Jacob J. Lew said Friday. “Time is of the essence” and “Greece has to take the lead.”


********************************************************

For all the strains, Draghi cautioned investors not to bet against the 16-year-old single currency. “It’s pointless to go short on the euro,” he said. “Do it.”


SOUNDS LIKE SOMEBODY NEEDS TO CHANGE HIS SHORTS...
 

Demeter

(85,373 posts)
12. FCA criticizes Deutsche Bank over Libor
Mon Apr 20, 2015, 07:14 AM
Apr 2015
http://uk.reuters.com/article/2015/04/18/uk-deutsche-bank-libor-idUKKBN0N90DB20150418

Britain's financial regulator has harshly criticized Deutsche Bank's top management for failing to cooperate in its probe of the rigging of benchmark interest rate Libor, German magazine Der Spiegel said on Saturday. The Financial Conduct Authority (FCA) wrote a letter saying that Deutsche Bank's behaviour was unacceptable, the magazine said, adding that Deutsche Bank's board discussed the letter...The lender declined to comment.

The penalties expected to be imposed on the bank by U.S. and UK authorities are likely to exceed $1.5 billion, the amount UBS Group AG paid in 2012, two sources told Reuters earlier in April. Deutsche Bank is expected to settle with U.S. and British authorities as early as Thursday over allegations that it tried to rig benchmark interest rates. Spiegel wrote that some supervisors involved in the probe would seek to hold Deutsche Bank management accountable. A spokesman for the FCA was not immediately available to comment.

German watchdog Bafin is expected to sum up its own investigation into Deutsche's role in the rate rigging scandal as early as May, one source said earlier in April. The regulator has already found no evidence that key managers of the bank knew about the manipulation.

Deutsche Bank, the world's second-largest foreign exchange trader, still faces potential claims or settlements over issues including possible attempts at foreign exchange benchmark manipulation and possible violations of U.S. sanctions on Iran. At the end of 2014, Deutsche Bank had set aside 3.2 billion euros ($3.5 billion) in litigation reserves and outlined another 1.9 billion euros in potential risks and indicated that it faced an additional 4.8 billion euros in mortgage repurchase claims.
 

Demeter

(85,373 posts)
13. G20 to deal with weaknesses at clearing houses
Mon Apr 20, 2015, 07:17 AM
Apr 2015
http://www.reuters.com/article/2015/04/17/g20-markets-regulations-idUSL5N0XE35020150417

The Group of 20 leading economies is set to back action by regulators to ensure that clearing houses for securities can withstand market shocks. Clearing houses, which stand between two sides of a transaction, are set to grow sharply as more derivatives are channelled through them to increase transparency. Policymakers fear this is creating a new breed of risky players whose collapse would wreak havoc in markets.

"We will identify and address gaps related to the resilience, recovery and resolution of central counterparties," G20 finance ministers and central bankers said in a draft communique prepared for a meeting under way in Washington.


EU financial services chief Jonathan Hill told Reuters on Friday he will shortly set out how the 28-country bloc will legislate to handle failed clearing houses. The communique also signalled a willingness to crack down on risks in the growing asset management sector despite fierce push back from the industry. "We agree to recommend policy actions to address risks, including those emanating from asset management activities, if necessary," the communique said. The document said the G20 will study work from its regulatory task force, the Financial Stability Board, on whether more measures are needed to reduce misconduct in banking after lenders were fined billions of dollars for trying to rig interest rate and currency benchmarks.

G20 leaders are expected to endorse at a summit later this year in Turkey a proposal forcing the world's 30 biggest banks to issue bonds that can be tapped to raise cash if they get into trouble, the communique said. AND HOW EXACTLY IS THAT SUPPOSED TO WORK?--DEMETER

Policymakers, especially in the EU, want markets to help raise more funds for companies to grow as banks rein in lending due to costlier capital requirements. The financial sector has said some of these capital requirements will have to be scaled back to encourage some forms of market based finance to expand, especially in Europe. The EU's Hill said on Friday he may tweak some global bank capital rules to this end, but the communique sounded a note of caution. The communique said the G20 will work to ensure that market based finance is able to "fulfill its growing role in supporting the real economy while the financial stability risks are subject to appropriate oversight and regulation".

I SMELL A REALLY SWEET DEAL FOR THE INSIDERS, AND A REALLY BAD DEAL FOR THE REST OF US.
 

Demeter

(85,373 posts)
14. EU prepares rules for tackling failed financial firms outside banking
Mon Apr 20, 2015, 07:19 AM
Apr 2015
http://www.reuters.com/article/2015/04/17/us-eu-markets-hill-idUSKBN0N80ZC20150417

The European Union is looking at creating rules on how to deal with financial firms outside the banking industry that run into trouble, including clearing houses, insurers and asset managers, the EU's financial services chief said on Friday. The 28-country bloc has already introduced rules on how to wind down troubled banks without turning to taxpayers for cash. It now wants a similar regime for other so-called systemic financial market participants.

EU financial services commissioner Jonathan Hill told Reuters in an interview that he would shortly set out a system specifically for dealing with failed clearing houses ahead of a draft law due to be completed later in the year. He said the issue had become pressing due to reforms to make the $700 trillion derivatives market safer by channeling these financial instruments through clearers, third party organizations that ensure derivatives trades are completed even if one side of the deal goes bust.

Clearing houses like Eurex Clearing (DB1Gn.DE) and LCH.Clearnet (LSE.L) are set to grow significantly, thus posing risks to financial stability if they collapsed...


TRYING TO KEEP THE FINANCIAL "BOMB" STOCKPILE SAFE BY SHOVING IT OFF INTO CLEARING HOUSES...WHAT INSANITY!
 

Demeter

(85,373 posts)
15. Risk of sharp reversal remains: global financial overseer Carney
Mon Apr 20, 2015, 07:22 AM
Apr 2015
http://www.reuters.com/article/2015/04/18/imf-g20-carney-idUSW1N0S300W20150418

The world has adjusted well to divergent growth and monetary policy expectations but the risk of a "sharp and disorderly reversal" in financial markets remains, Financial Stability Board Chairman Mark Carney said on Saturday.

"The risk of a sharp and disorderly reversal remains, given compressed credit and liquidity risk premia," Carney, whose FSB oversees the global financial system, said in a statement to the International Monetary Fund's steering committee. Carney, who is governor of the Bank of England, said market participants needed to be mindful of the risk of diminished market liquidity, asset price discontinuities, and contagion across markets.

"The impact of lower commodity prices, a stronger U.S. dollar and moderating economic growth may lead to further challenges for the financial resilience of some emerging market and developing economies, including the risk of capital flow volatility," he added.


The FSB has agreed on a work plan to identify financial stability risks associated with market liquidity in fixed income markets and asset management activities, he said. It will also address longer-term structural financial stability issues that may arise. It will discuss its initial findings at its next meeting in September.


YOU CAN SEE, HEAR AND SMELL THE SWEATING FROM HERE...NO WONDER GE IS DROPPING ITS FINANCIAL AND REAL ESTATE BUSINESS AS FAST AS POSSIBLE...ALL PAPER ASSETS ARE GOING TO BE WIPED OUT! GE IS GOING BACK TO REALITY-BASED MANUFACTURING...
 

Demeter

(85,373 posts)
16. GE holds talks with sovereign wealth funds for sale of finance assets
Mon Apr 20, 2015, 07:24 AM
Apr 2015
http://www.pionline.com/article/20150417/ONLINE/150419879?AllowView=VDl3UXlwTzlDL09CblIzQURleUhaRUtzajBnVkErNWFFQT09&utm_campaign=smartbrief&utm_source=linkbypass&utm_medium=affiliate

General Electric Co. has held talks with “a broad geographic spectrum” of sovereign wealth funds as part of the effort to sell the bulk of its financial business, said Jeff Bornstein, senior vice president and chief financial officer.

While declining to give specific names, Mr. Bornstein said a number of funds have expressed interest along with banks, private equity firms, hedge funds and insurance companies. GE hopes to complete the majority of GE Capital disposals by the end of 2016, he said.

“We're tracking every expression of interest inbound,” Mr. Bornstein said Friday in a telephone interview. “We have multiple, multiple pages of names. I think this is going to be very competitive.”

Discussions with sovereign buyers show the scope of potential demand for GE's divestiture of about $200 billion in commercial finance, consumer lending and real estate assets. Large U.S. banks, including U.S. Bancorp and J.P. Morgan Chase, have said they would look into what is shaping up as a frenzy of interest from financial firms.

AND CASH...GE IS BUILDING A WAR CHEST FOR FIRE-SALE PURCHASES (AND STOCK BUY-BACKS)

Having sovereign buyers involved could speed GE's sales process because they might be able to avoid U.S. rules for domestic bidders, said Scott Davis, a Barclays analyst. GE opted to sell most of the finance business in part to shed its label as a systemically important financial institution, a tag that also could trip up U.S. buyers.

“Large banks are going to have some of the same restrictions that GE had,” Mr. Davis said in an interview. “What's appealing about the thought of a sovereign buyer coming in is you wouldn't have the regulatory challenges. Basically you get the keys to the car and drive away.”


Sovereign funds might be interested in GE's $130 billion commercial lending and leasing portfolio, which provides financing largely to middle-market businesses, Mr. Davis said. The unit has “a diversified portfolio, it already has its own sales force and collection people,” he said. GE said April 10 that it will sell the bulk of its lending unit in a sweeping move that accelerates CEO Jeffrey Immelt's plan to shrink the GE Capital unit that destabilized the parent during the 2008-'09 financial crisis.
 

Demeter

(85,373 posts)
17. Ex-governor Corzine discussing plans to start hedge fund, report says
Mon Apr 20, 2015, 07:32 AM
Apr 2015

TOO BAD THEY DIDN'T PUT HIM IN JAIL

Jon Stevens Corzine (born January 1, 1947) is an American financial executive and politician. A Democrat, he was a United States Senator from New Jersey from 2001 to 2006 and was the 54th Governor of New Jersey from 2006 to 2010. He also worked as CEO of Goldman Sachs during the 1990s and was CEO of MF Global from 2010 to 2011. He was charged by the Commodity Futures Trading Commission (CFTC) in connection with MF's bankruptcy in 2011.

Corzine began his career in banking and finance. In the early and mid-1970s, he worked for Midwestern banks (Continental-Illinois National Bank in Chicago, Illinois and BancOhio National Bank in Columbus, Ohio) during and after his master of business administration (MBA) studies at the University of Chicago Booth School of Business. In 1975 he moved to New Jersey to work for Goldman Sachs. He became Chairman and CEO of Goldman Sachs and the leading advocate in the firm's decision to go public. In 1999, having lost a power struggle with Henry M. Paulson, Corzine left the firm. After his departure from Goldman Sachs, he earned what has been estimated to be $400 million during the 1999 initial public offering of the company.

Corzine served five years of a six-year U.S. Senate term representing New Jersey before being elected Governor in 2005. He was defeated for re-election in 2009 by Republican Chris Christie. In March 2010, Corzine was named chairman and CEO of MF Global Inc., a financial services firm specializing in futures brokerage. The company filed for bankruptcy protection in October 2011 after losing $1.6 billion of customer money and Corzine resigned on November 4, 2011...
http://en.wikipedia.org/wiki/Jon_Corzine


HE'S BEEN A BUSY, NAUGHTY LITTLE BOY! AND STILL IS!

http://www.nj.com/news/index.ssf/2015/04/ex-govenor_corzine_discussing_plans_to_start_hedge.html

Former governor and U.S. Senator John Corzine may soon add another title to his resume — hedge fund owner.

According to the Wall Street Journal, the fund would likely be launched with Corzine's own personal wealth, along with contributions from a handful of outside investors.

Corzine has a background in high finance, where he has spent most of his time since leaving Trenton in early 2010.

The same year, he took over as CEO of MF Global, and held the position until the firm declared bankruptcy in 2011. Both he and the company are currently facing civil charges brought by the Commodity Futures Trading Commission, accusing them of improper use of customer funds and a range of other consumer protection law breaches.

Corzine also served as CEO of Goldman Sachs Group during the 1990s, prior to becoming a senator.
 

Demeter

(85,373 posts)
18. Bloomberg outage hits financial markets
Mon Apr 20, 2015, 07:36 AM
Apr 2015
http://www.reuters.com/article/2015/04/17/us-markets-bonds-britain-bloomberg-idUSKBN0N81AH20150417

A two-hour outage at news and market data provider Bloomberg LP hit financial markets around the world on Friday, prompting debt sales to be postponed and exacerbating a spike in volatility in European stocks.

"We experienced a combination of hardware and software failures in the network, which caused an excessive volume of network traffic," Bloomberg said in a statement.

"This led to customer disconnections as a result of the machines being overwhelmed."


Bloomberg said service has been fully restored and the company is reviewing why its "multiple redundant systems" failed to prevent the disruption. The lack of price visibility was blamed for accelerating a sell-off in European shares, while trading volumes in German government bond futures contracts fell by around a third. There was little disruption to U.S. trading, according to market sources.

Bloomberg, which competes with Thomson Reuters Corp, provides real-time news and financial information to more than 320,000 subscribers globally and allows users to trade across asset classes. Social media first reported the Bloomberg systems going down at around 0320 EDT and the screens were blank for most of the following two hours, market participants said, adding that prices were unavailable and the news feed intermittent. Traders said the length of time the Bloomberg screens were down was unprecedented.

"There were frantic scenes on the markets this morning," said Connor Campbell, a financial analyst at spread betting firm Spreadex.


UNPRECEDENTED

Britain's Debt Management Office had planned a regular sale of 3 billion pounds of treasury bills on Friday morning. The tender was held later in the day. A spokesman said he could not recall the agency ever having to postpone a sale in similar circumstances. The Bank of England said its core operations were not affected and that it had "all the tools it needs to carry out its responsibilities for financial stability, and provision of market liquidity, if and as required." In a statement, Britain's financial market regulator, The Financial Conduct Authority, said: "We are aware of the issue and are monitoring the impact on our firms."

The volume of trading in German Bund futures between 0300 and 0500 EDT was down by around a third compared with the same period in the last few Friday trading sessions. In that two-hour period, 62,845 lots of Bund futures were traded, according to Eurex data. That compares with 96,301 contracts a week ago, 89,048 on March 27 and 88,476 on March 20. "It has created a lot of disruption, because there's lack of visibility," ADM Investor Services strategist Marc Ostwald said. "While Friday is not generally a huge day for corporate issuance, everything's been put on hold because of it."

Bankers told Thomson Reuters market news service IFR that at least one corporate bond sale worth over 1 billion euros had been delayed because of the outage. Traders said the outage had exacerbated volatile activity on stock markets, particularly around the expiration of options contracts. It also hindered the ability of traders to react to an announcement on new Chinese regulations.

"A lot of people use Bloomberg EMSX to route orders out, so there might have been loads of people wanting to react to the news but couldn't as they couldn't put their sales into the market," said Mark Ward, head of trading at Sanlam.

 

Demeter

(85,373 posts)
19. In local news...
Mon Apr 20, 2015, 07:40 AM
Apr 2015

We had quite a bit of rain dumped on us, and the clouds are just starting maybe to clear away. The temperature dropped with the rain, and will flirt with freezing for the week...Still, fact that it's not going below 10 or -10 is still a great relief...

 

Demeter

(85,373 posts)
23. The Continuing Depopulation of Detroit
Mon Apr 20, 2015, 08:16 AM
Apr 2015
http://www.nakedcapitalism.com/2015/04/continuing-depopulation-detroit.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+NakedCapitalism+%28naked+capitalism%29

Yves here. Detroit is getting the same treatment as Latvia and Ireland, and we are already seeing similar results in Greece, with most people who have good foreign job prospects taking a hike. But while Latvia and Ireland stabilized at much lower levels of output and have started to recover from their, Detroit, like Greece, looks like a failed state. And this is perversely seen as acceptable in America.

By Laura Gottesdiener, a freelance journalist based in New York City. The author of A Dream Foreclosed: Black America and the Fight for a Place to Call Home, her writing has appeared in Mother Jones, Al Jazeera, Guernica, Playboy, RollingStone.com, and frequently at TomDispatch. Originally published at TomDispatch

...no door in the history of architecture — rotating or otherwise — could have accommodated the latest perversity Detroit officials were inflicting on city residents: the potential eviction of tens of thousands, possibly as many as 100,000 people, all at precisely the same time...Little wonder that it seemed as if everyone was getting stuck in the rotating doors of that Wayne County office building on the last day residents could pay their past-due property taxes or enter a payment plan to do so. Those who didn’t, the city warned, would lose their homes to tax foreclosure, the process by which a local government repossesses a house because of unpaid property taxes.

“Oh, my lord,” exclaimed one bundled-up woman when she first spotted the river of people, their documents in envelopes and folders of every sort, pouring out of cars, hunched over walkers, driving electric scooters, being pushed in wheelchairs, or simply attempting to jam their way on foot into the building. The afternoon was gray and unseasonably cold. The following day, in the middle of a snowless meadow in the Sierra Nevada Mountains, the governor of California would announce the state’s first-ever water restrictions as a result of an unprecedented, climate-change-influenced drought. Here in Michigan, city residents were facing another type of man-made disaster: possibly the largest single tax foreclosure in American history.

“It’s the last day to pay,” one woman heading toward the rotating glass chamber yelled to a pedestrian who had slowed to watch the commotion. Inside, a Wayne County Sheriff’s Department officer-turned-traffic-controller boomed instructions to a snaking line of people. “When you get to the eighth floor, you will get a number. Keep that number! Then go to the fifth floor.’”

The eighth floor, however, turned out to be little more than another human traffic jam, a holding space for thousands of anxious homeowners who faced hours of waiting before reaching the desk of some overworked city representative down on five. Yet, as a post office delivery worker gaping at the fiasco told me, this was less hectic than it had been a only few days earlier, when the treasurer’s office had rented out the Second Baptist Church across the street. There, people waited for the opportunity to enter the revolving doors to take the elevator to the eighth floor before heading for the fifth floor to… you get the gist.



Detroit was once famous for creating the largest, most spectacular versions of whatever its residents set their minds to, be they assembly lines, record labels, or revolutionary workers’ associations. The city is often credited with inventing and mass-producing the twentieth century, while its workers simultaneously took the lead in revolting against the injustices of the era. Its factories put the world on wheels and labor laws on the books. Its workers and thinkers sparked and fanned a number of this country’s most influential resistance movements.

Detroit: every article about you should include a love letter, a thank-you note, a history lesson, for without you…


Few care to admit, however, that the city that was the arsenal of the twentieth century may also provide the blueprint for a more precarious era. Which brings us to those massive tax foreclosures of the present moment. Just over 60,000 homes, about half of them occupied, are slated for the auction block. As many as 100,000 of the city’s residents — about a seventh of the total number — are now on track for what many are calling an eviction “conveyor belt.”

IT'S A LONG SAD ARTICLE, AND READS LIKE AN OBITUARY...BUT I'D BE HONORED IF YOU READ IT. IT'S THE HARBINGER FOR US ALL. THE RAPE AND PILLAGE OF AMERICA IS BEING DESIGNED HERE.
 

Demeter

(85,373 posts)
20. Bankruptcies Suddenly Soar Across Corporate America, Worst First Quarter Since 2009 by Wolf Richter
Mon Apr 20, 2015, 07:44 AM
Apr 2015

WELL, THAT'S BECAUSE "IT'S MORNING AFTER" IN AMERICA, TO RIP OFF ST. RONNIE...

http://wolfstreet.com/2015/04/16/bankruptcies-soar-across-corporate-america-not-just-oil/


“Come down to Houston,” William Snyder, leader of the Deloitte Corporate Restructuring Group, told Reuters. “You’ll see there is just a stream of consultants and bankruptcy attorneys running around this town.”


But it’s not just in Houston or in the oil patch. It’s in retail, healthcare, mining, finance…. Bankruptcies are suddenly booming, after years of drought. In the first quarter, 26 publicly traded corporations filed for bankruptcy, up from 11 at the same time last year, Reuters reported. Six of these companies listed assets of over $1 billion, the most since Financial-Crisis year 2009. In total, they listed $34 billion in assets, the second highest for a first quarter since before the financial crisis, behind only the record $102 billion in 2009.

The largest bankruptcy was the casino operating company of Caesars Entertainment that has been unprofitable for five years. It’s among the zombies of Corporate America, kept moving with new money from investors that had been driven to near insanity by the Fed’s six-plus years of interest rate repression. Next in line were Doral Financial, security services outfit Altegrity, RadioShack, and Allied Nevada Gold. The first oil-and-gas company showed up in sixth place, Quicksilver Resources Investors Crushed as US Natural Gas Drillers Blow Up. Among the largest 15 sinners on the list, based on Bankruptcydata.com, are six oil-and-gas related companies. But mostly in the lower half. So far, larger energy companies are still hanging on by their teeth.



This isn’t the list of a single troubled sector that ran out of luck. This isn’t a single issue, such as the oil-price collapse. This is the list of a broader phenomenon: too much debt across a struggling economy. And now the reckoning has started....

THE WAGES OF QE ARE DEATH

THAT INSPIRES ME!




AND THAT HYMN TO THE PREVIOUS GREAT DEPRESSION:



AND NOSTALGIA FROM THE 70'S

MattSh

(3,714 posts)
22. This should prove to be an interesting week (NOT)
Mon Apr 20, 2015, 08:04 AM
Apr 2015

First we woke up to light snow this morning. At least one forecast says to expect that on Tuesday and Wednesday too.

Next, our son is off from school this week. Not the whole school is off; just his class. Why? Well, they get the time off so they can prepare for an important test this Friday. Now you just might be thinking "isn't the school in a better position to prepare students for tests than parents are?" Ah, but you're thinking way too logically and American-like, you are. Here the schools are notorious for not preparing students for tests. Why would this be?

Over here, teachers are paid incredibly poorly. How poorly? Before the economy went to hell in a handbasket, teachers would be paid about $200. A month. Now with the currency devaluation, they still get paid the same in hryvnia, but it's now worth only about $60. So there's not a lot of motivation to do more than the minimum, plus there's not a lot of competition from others trying to get your position. Because $60 a month.

So the teachers tend to underteach, knowing that they can make more money on the side to bring students up to speed. Now you'd think "why would anybody hire them when they failed to teach the subject correctly in the first place"? Well, they find students in the bordering districts, a few minutes away. In this week of private tutoring, a teacher can make what they would normally make in 2 months in the schools. So there's a strong economic incentive to underteach, because your standard of living, and possibly even your health and survival are on the line. Genius! Pure genius I tell you!

No, this is not a recent development. This has been going on pretty much for 20 years now. This week off comes after they extended the fall break from 1 to 2 weeks, the Christmas break from 1.5 to 2.5 weeks, and the spring break from 1 to 2 weeks. Why? To save money, that's why. My guess is that the teachers did not get paid for those 3 extra weeks off. This is what happens when you don't pay teachers adequately.

 

Demeter

(85,373 posts)
24. I can't go on posting--Detroit's story has ripped my inner resources out
Mon Apr 20, 2015, 08:26 AM
Apr 2015

It is a pattern of anti-social evil and greed that permeates everything....and drains the soul. And I've got to go work on the local dragon infestation some more. Until tonight, or at the latest, tomorrow. Keep the faith, everyone! Failure is impossible, as long as we refuse to quit.

 

Demeter

(85,373 posts)
25. Oh, yes, let's shoot that DJIA up with smack: up 180 points at the open
Mon Apr 20, 2015, 09:45 AM
Apr 2015

after all, there's a nearly 300 point loss on Friday to make up for....

peaked at 215, and now on its way down...

Latest Discussions»Issue Forums»Economy»STOCK MARKET WATCH -- Mon...