Monthly Archives: July 2012
How Sound is China’s Banking System ?
“Chinese banks shares were hit yesterday on the stock market, led by China Construction Bank (CCB), which fell by 2.95% in Hong Kong on the news that it is the biggest lender to Zhejiang Zhongjiang, which is going bust. Interestingly, three months ago we had a brief mention of Zhongjiang when one of its subsidiaries, Jinxing Property, filed for bankruptcy.”
Comments »House Dems Fail to Stop Budget Cuts to Food Stamp Program
“WASHINGTON (AP) — Democrats fell short in efforts Wednesday to block cuts to the food stamp program as the House Agriculture Committee moved ahead on a half-trillion-dollar bill to fund farm and nutrition programs over the next five years. Similarly, a Republican attempt to make deeper cuts to the program was defeated.
The program that helps feed 46 million people at a cost of near $80 billion a year, about 80 percent of farm bill spending, was the dominant issue as committee members tried to advance one of the larger and more expensive bills that Congress is taking up this year. Democrats insisted that any cuts to the Supplemental Nutrition Assistance Program would result in people going hungry. Republicans said they were merely trying to bring efficiency to a program to ensure that anyone who is qualified for food benefits will receive them.”
Comments »Consumer Have Not Reaped the Benefits of Lower Natty Gas Prices
Despite lower natty gas prices helping utility companies to spend less on the energy needed to create electricity, consumers of electricity have not benefited. In fact the consumer has experienced price hikes all across the nation.
Comments »June Shows a New Trend in Foreclosures
“LOS ANGELES (AP) — Banks are increasingly placing homes with unpaid mortgages on a countdown that could deliver a swell of new foreclosed properties onto the market by early next year, potentially weighing further on home values.
June provided the latest evidence of this trend, as the number of U.S. homes entering the foreclosureprocess for the first time increased on an annual basis for the second month in a row, foreclosure listing firm RealtyTrac Inc. said Thursday.”
Comments »Crude Continues to Fall on Global Growth Concerns
Jobless Claims: Prior 374, Market Expects 375k, Actual 350k
Investors Continue to Seek Safety in Europe’s Bonds; New Lows Seen Across the Region
As Italy, Spain, and other troubled countries struggle to sell debt, other countries like Germany, France, and the U.K. have a huge influx of buying sending bond yields to record lows.
Comments »Blackstone is Said to Be Bidding for ING Asia
“Blackstone Group LP (BX) is teaming up with Mark Wilson, the former head of AIA Group Ltd. (1299), and other investors in a bid for ING Groep NV (INGA)’s Asian insurance business, said two people with knowledge of the matter.
The group, which includes reinsurer Swiss Re (SREN) Ltd., may make an offer of 5 billion euros to 6 billion euros ($7.35 billion) by July 16, the deadline for final bids, said one of the people, who asked not to be identified because the process is private. ING agreed to divest its insurance and asset management operations before the end of 2013 as a condition of receiving state aid.”
Comments »China Sells More Bonds Than Expected; Hopes Build for a Rebound
China issued more Yuan loans than expected in June. This spurred speculation China is on the comeback trail and helped to lift the Shanghai Composite while all of Asia fell.
Comments »The Aussie Dollar Falls on Job Growth Concerns
The jobless rate rose in June as employers in Australia cut payroll slots. As a result Aussie markets and the Aussie dollar fell in overnight trade.
Comments »Japan Expands Asset Purchases, but Gives No New Stimulus
Investors were expecting more stimulus out of the bank of Japan, but did not get it. As a result Japan heled to lead Asian markets down.
Comments »World Markets Fall Over Growth Concerns, No Fed Action, and a Tanking Euro
World markets fell in over night trade as the Euro fell below 1.22. Growth concerns remain for the global economy and the world is not so sure about the recent decisions made to bail out Spain.
In addition to many concerns the Fed released its minutes yesterday without any hints of QE or stimulus.
Comments »Asian Markets Get Slammed, Europe Not as Much, and U.S. Futures Indicate a 0.5+% Loss
BRIC-WALL: Brazil Lowers Interest Rates to 8.00%
That is the 8th reduction in rates since last August.
Comments »Bath Salts Strike Again
The last of three consecutive Phish concerts at Saratoga Performing Arts Center ended with a naked woman stripping and plunging 25 feet from a light utility pole, authorities said. Read More
Comments »Do You Think Politicians Should Seek to Reduce Income Inequality?
You really must look at this Economist graph, created by the citizens of each country voting on this question. Note carefully the countries that vote for politicians to reduce income inequality.
Submit your vote and see the graph here.
Comments »SEC Votes 3-2 to Adopt Audit Trail Rule
(Reuters) – A divided Securities and Exchange Commission on Wednesday adopted a rule designed to bolster the agency’s surveillance of the equities markets by establishing a central database that stores information on every trade order, execution and cancellation.
Read the article here.
Comments »Disaster Declared in 26 U.S. States as Drought Sears Midwest
More than 1,000 counties in 26 states are being named natural-disaster areas, the biggest such declaration ever by the U.S. Department of Agriculture, as drought grips the Midwest.
Read the article here
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