The proposed Keystone XL pipeline would raise U.S. gasoline prices, according to the National Resources Defense Council: The pipeline would divert crude oil from the U.S. Midwest to Gulf Coast refineries geared to producing diesel fuel for export, which would reduce gasoline produced for U.S. consumers and raise production costs, making the fuel more expensive. [View news story]
Well lets think about this a little more.
More exports will require investments in the port facilities. It will create jobs!
More infrastructure in our ports to export Oil, will also mean investment to export LNG. It will also create jobs!
LNG exports means the price of NG will rise, making 1000's more wells economically viable. Which means more jobs for drilling. Which means more jobs for building more pipelines. Which means more manufacturing jobs to build the pipes. Which means more demand for metals and fabricating equipment. Which means more and more and more jobs!!
Hmmmm..... So we could add a ton of new jobs and expand existing industries....... or we can sit on our ass and save three cents a gallon at the pump!
As concerns grows on the economic front, former Council of Economic Advisers Chairman Martin Feldstein says the dangers are all too real. We're stumbling along right now, Feldstein says, and the folks forecasting 3% growth are far too optimistic. "We'll be lucky if we have 2%." As for the "economic cliff" we're facing in 2013, if everything that's due to expire expires, it will in fact be an economic disaster. (video) [View news story]
So does he prefer that our children and grandchildren go off an even bigger cliff? When exactly should government spending be cut? When should the entire tax code be reformed?
Does anyone really think the crowd in DC are going to enact solid common sense measures that reform our tax code, reduce the size of our federal government, scale back the military footprint globally, and restore our freedoms?
I think that 3/4ths of all people now simply ignore the news and anything having to do with government. We know that the triumvirate of bureaucrats, politicians and financial elite have effectively captured the corridors of power and are stealing from future generations to enrich themselves.
Nassim Taleb emerges to weigh in on the JPMorgan trading loss, and sounds tired of being proven right. "They don't seem to know what they're talking about when they're talking about risk ... What Mr. Dimon said is nonsense, they are using the wrong tools. It's not a fluke ... the entire apparatus is based on a big illusion ... it's a business they should not be in." [View news story]
Frankly, who cares?
Let them do whatever they want. Just make sure its shareholders and bondholders that burden the losses.
Repeal Glass-Steagall and let gamblers gamble. If people want to back them with bonds and equity thats their business.
Oh, and could someone in the Justice Department actually prosecute Fuld and Mazillo and the London AIG guy?
And perhaps a new regulation disallowing any Justice Department employee or financial regulator from working or representing anyone they regulate for 5 years!
Stocks are as oversold today as they were since the doom-and-gloom days of the financial crisis, says Bespoke's Paul Hickey. In total, 5 out of 10 S&P 500 sectors are now three standard deviations from their 50-day moving average. "This is as oversold as they have been at the lowest points," Hickey says. "We simply haven't gotten more oversold than this versus the 50-day." [View news story]
Well I'm afraid we may have a few more standard deviations to go.
The stage is set.
Greece elects a guy that says they will simply renounce their debts.
Portugal and Spain slide further into debt and say..... "why don't we do that too!"
US Politicians are reported talking about another try at "compromise on spending and the deficit". We saw how that turned out the last time.
That trifecta can get us a lot lower across the board.
Spain says it may have to once again revise its 2011 budget deficit upward. Spending by the four regional Spanish governments exceeded forecasts, driving up the national deficit for a second time. The government now projects a possible deficit that is equal to 8.9% of GDP, nearly three times the recommended maximum for nations using the euro. [View news story]
What a joke.
Governments across the western world are populated by overeducated idiots.
The US is no different. It is not difficult to spend less than you take in. It just means saying no to things that aren't a neccessity.
What is happening is a new form of theft. Government bureaucrats steal from future generations and set themselves up as the new "middle class". Meanwhile, the folks they actually should be serving see their freedoms, liberties and cash flows confiscated by the politicians and bureaucrats - for their benefit and the financial elites benefit.
Its long past the time that the people start to take power away from these idiots and restore their freedom and liberty. If it doesn't happen at the ballot box, followed up by responsible governing - then we will see social upheaval and potentially social breakdown to flush out this corruption.
Fed Governor Elizabeth Duke says that while the housing market is slowly mending, it's still in need of a lot of help. Any sustainable housing recovery depends on more action from Congress and federal regulators to stabilize the U.S. mortgage market. What can they do? They can start by loosening lending standards by banks and mortgage lenders, Duke says. That will go a long way towards attracting buyers back to the market. [View news story]
Have to disagree with the idea that holding appraisals as potentiall liable for their work being a bad idea.
I own a business where part of the business is occasionally giving appraisals for a fee. My business would be liable if we gave an appraisal that is demonstrably wrong. And not just for the original fee.
You either stand behind your work or you don't. And if your negligent or corrupt or simply not very smart, then there should be potential consequences to that.
I totally disagree with the Fed Governor. Who says the market needs "help". Seems to me that we are focussed entirely on the wrong thing - the idea that higher housing prices are somehow inherantly good.
What about "affordable housing"? What about treating housing as a utility - a roof over your head and whatever fancy stuff your willing to pay for inside for your own pleasure?
The government should be pushing the banks to get all the houses they hold onto the market - flush it all out and then go from there. Likewise, zero programs for homeowners - can't pay the mortgage pack up and move to an apartment. Life goes on.
More on J.C. Penney (JCP): Q1 misses across the board on wider-than-expected losses. Additionally, the company says it's discontinuing its $0.20 per share quarterly dividend. On an annual basis, this will result in cash savings of approximately $175M, which will be used to help fund the broad-based transformation plan that the company announced in January. Shares -14% AH. [View news story]
Oh yes, Shareholders will sacrifice while the executives keep taking home their big salaries and bonuses.
How about Senior Executives and Board Members take the same pay cut as shareholders! I'll bet that dividend would be reinstated immediately!!!
Cheniere Energy Partners (CQP -3.5%) agrees to sell $1.5B in stock to investors affiliated with Blackstone (BX) at a 40% discount to the company's Monday closing stock price, in its continued aggressive effort to raise funds for construction of the Sabine Pass natural gas export facility. [View news story]
You got diluted..... which is fine if its needed IMO..... BUT at a 40% discount!!
ie, you bought at market price and the Blackstone crowd paid 40% less than you for the same share.
Shares of Accretive Health (AH +4.4%) bounce after the company submits a 29-page reply to questions raised by Senator Al Franken after Minnesota's AG alleged that AH used potentially illegal tactics to collect payments from patients at a Minnesota health facility. In its reply the company insisted it did not violate any federal laws related to patient privacy or debt collection and said it "appreciates the opportunity to set the record straight." [View news story]
They didn't violate any laws except the laws of decency.
I'm all for paying for what you buy. And I don't believe health care is "free". But no way should the halls and emergency rooms in a hospital be filled with debt collectors.
IF people don't pay their bill, there are legal methods of collecting money that don't involve subjecting sick/injured people to additional stress. Not to mention, they are effectively acting as judge and jury if people actually have challenged whatever the bill collector is saying they owe.
Twice in my life I've had a bill which I refused to pay. Once it was for goods sent to me that I didn't order. The second was for a doctor's bill.... from a doctor that didn't perform the service billed. Both times I had debt collectors send letters, threaten me on the phone, and once even showed up in person. I told them to pound sand and finally had a lawyer send a cease and desist letter threatening legal action given that I claimed I didn't owe the money. But how many people 1. Realize they have avenues to challenge the claim. 2. Have the resources to afford a lawyer. 3. Have the werewithall to challenge the original bill that is erronous or fraudulent.
Bill collectors run legitimate businesses (I'd question many of their practices) but that place isn't in the hospital. If Hospitals want to be proactive on the revenue side I'd suggest posting cash prices on the doors when you walk in and offer good discounts to people who pay for service!
Cheniere Energy Partners (CQP -3.5%) agrees to sell $1.5B in stock to investors affiliated with Blackstone (BX) at a 40% discount to the company's Monday closing stock price, in its continued aggressive effort to raise funds for construction of the Sabine Pass natural gas export facility. [View news story]
40% discount!!! *&#&^$*$&
Why not simply do an offering to current shareholders?????
I'm fine with needing the cash and selling equity to get it - but this is a freaking giveaway. Try asking shareholders FIRST.
How surprising. Greece's plan to get citizens to pay property taxes by bundling them with electricity bills has failed, with the Public Power Corporation - itself bailed out last month - no longer trying to collect (even getting an ok from the finmin). Government (Troika) pencil-pushers had hoped the scheme would raise €1.7-2B in Q4 last year. [View news story]
This is what happens when you develop the mentality of "entitled".. Americans should be paying attention. When you have a large segment of your population believing that government exists to give to them it becomes a disease and soon more and more people exit the 'system'.
Greece is now basically broken. No Greek politician will be able to fix it as he/she will be opposed by fringe groups promising easy fixes to an unfixable problem.
Greece simply needs to exit the Euro, re-introduce the drachma and let the standard of living fall to the point where investment might kick in. It will be a big fall. Along with that they need total reform of their tax system and to actually prosecute those that don't pay their taxes.
In the USA we're seeing this play out in various states. Wisconsin public employees that demand the gravy train continue, California governor asking voters to give him more of their hard earned money, and federal employees earning 40-50% more than those they supposedly serve. Unless we turn the ship around it will end just as badly here as it did in Greece.
3 Reasons The Russian Ruble Is The Least Risky Investment Under Putin 2.0 [View article]
There are some crooks and thieves in Russia - but they also exist elsewhere. As for your comment regarding work ethic I have to disagree. There is a large segment of the population that works extremely hard and has great work ethics. I would agree that their is a sizeable segment (maybe 20%) that have a less than strong work ethic and fit more into the Soviet stereotype. But couldn't you say the same thing about the USA??? And you'll find there are many many simply brilliant engineers, mathematicians, etc.
There is less desire to leave Russia today than there was prior to Putan's first go-around. Its still a fairly high number if you compare it to countries like Poland and Czech Republic. But that has to do with the wish for political freedom, not for economic reasons. The very rich do locate as much of their wealth as they can simply due to the fear of losing it to the state.
If Putin is willing to attack corruption in terms of both the bureaucracy and the politics then Russia would really boom. Personally I don't think he will...... but then again do you expect Congress to balance the budget? Do you expect the administration to prosecute anyone responsible for the financial crisis? Do you expect changes that eliminate the lobbyists on K street???
If you look at many of the things going on here in the USA from a different perspective and compare it - you'll find things aren't much different. Lobbyists take big dollars and get the government to ensure their businesses make more money. The government officials wink, wink leave their posts and then get paid big bucks to sit on said companies boards or work as their lobbyists. In Russia its just more direct - want something - pay for it. Not too much difference.
In Russia there are favored businesses due to the corruption. In the USA there are favored businessed due to the corruption. Government contracts handed out basically as political favors - guarantee certain percentages go to certain groups. Guarantee certain contracts are structured so only certain businesses meet the criteria. Again, in Russia its just more transparent.
And lets consider the fiscal responsibility of the governments? Russia balances their budget, they are investing trying to diversify their economy. USA? When did the Senate last pass a budget of any kind? Hmmm.....
Krugman, Lack Of Demand, Lack Of Jobs And The Future Of America [View article]
To spread the risk by having one-payer system ----------------------...
I've lived in countries with the supposed "one-payer" system.
For providing basic health care it works fine. For anything beyond that those with means go to private facilities where they can receive care for payment. And you'll find an increasing number of people purchase private health insurance to allow this. So you end up with a two tiered system - one with readily available services - and one with rationed services.
So there is no magical solution to our massive problem. My own opinion is to get both government and health insurance out of the current system. Get rid of the tax benefits of employer provided benefits. Get the government out of being the payer for a large percentage of services. Through in some common sense regulations - like preventing price gouging in emergency situations/rooms and I think we'd find a much more affordable health care future for the USA.
Coty withdraws its $10.7B takeover bid for Avon (AVP), saying the cosmetics direct seller has missed its deadline to start talks. Coty Chairman Bart Brecht: "I find it remarkable that since we made our revised proposal ... no one from Avon's Board or management has been willing to speak with us." (PR) [View news story]
Why would the management team that will be sacked call?
Who's kidding who? Most management team's these days don't view themselves as having fiduciary responsibilities - they just care about their next bonus. Shareholders?? Suckers!
While "bailout" is usually associated with the eurozone, Fox Business' Gerri Willis has a poll asking whether U.S. taxpayers will be forced to bail out California. The survey comes two days after Governor Jerry Brown said the state faces a $16B black hole. [View news story]
What do you mean when you say they get back 80%?
I'd argue that their voters are highly responsible for the increased federal spending that necessitates the 314 Billion in taxes in the first place.
The pork rind land states as you call them, favor less government spending and thus less taxation.
California is not OK. Over-regulation is an understatement. Public employees are basically guraranteed to be millionaires if they stay in their jobs. At the same time as the public employees get rich, the rest of the population receive fewer services from these employees!!
A bailout of California might result in something much more ferocious than the tea party. Its long past the time that public employees lose their grip on the public purse and go back to being public servants. And its long past the time to tell folks that they are responsible for taking care of themselves.
The proposed Keystone XL pipeline would raise U.S. gasoline prices, according to the National Resources Defense Council: The pipeline would divert crude oil from the U.S. Midwest to Gulf Coast refineries geared to producing diesel fuel for export, which would reduce gasoline produced for U.S. consumers and raise production costs, making the fuel more expensive. [View news story]
More exports will require investments in the port facilities. It will create jobs!
More infrastructure in our ports to export Oil, will also mean investment to export LNG. It will also create jobs!
LNG exports means the price of NG will rise, making 1000's more wells economically viable. Which means more jobs for drilling. Which means more jobs for building more pipelines. Which means more manufacturing jobs to build the pipes. Which means more demand for metals and fabricating equipment. Which means more and more and more jobs!!
Hmmmm..... So we could add a ton of new jobs and expand existing industries....... or we can sit on our ass and save three cents a gallon at the pump!
As concerns grows on the economic front, former Council of Economic Advisers Chairman Martin Feldstein says the dangers are all too real. We're stumbling along right now, Feldstein says, and the folks forecasting 3% growth are far too optimistic. "We'll be lucky if we have 2%." As for the "economic cliff" we're facing in 2013, if everything that's due to expire expires, it will in fact be an economic disaster. (video) [View news story]
Does anyone really think the crowd in DC are going to enact solid common sense measures that reform our tax code, reduce the size of our federal government, scale back the military footprint globally, and restore our freedoms?
I think that 3/4ths of all people now simply ignore the news and anything having to do with government. We know that the triumvirate of bureaucrats, politicians and financial elite have effectively captured the corridors of power and are stealing from future generations to enrich themselves.
Nassim Taleb emerges to weigh in on the JPMorgan trading loss, and sounds tired of being proven right. "They don't seem to know what they're talking about when they're talking about risk ... What Mr. Dimon said is nonsense, they are using the wrong tools. It's not a fluke ... the entire apparatus is based on a big illusion ... it's a business they should not be in." [View news story]
Let them do whatever they want. Just make sure its shareholders and bondholders that burden the losses.
Repeal Glass-Steagall and let gamblers gamble. If people want to back them with bonds and equity thats their business.
Oh, and could someone in the Justice Department actually prosecute Fuld and Mazillo and the London AIG guy?
And perhaps a new regulation disallowing any Justice Department employee or financial regulator from working or representing anyone they regulate for 5 years!
Stocks are as oversold today as they were since the doom-and-gloom days of the financial crisis, says Bespoke's Paul Hickey. In total, 5 out of 10 S&P 500 sectors are now three standard deviations from their 50-day moving average. "This is as oversold as they have been at the lowest points," Hickey says. "We simply haven't gotten more oversold than this versus the 50-day." [View news story]
The stage is set.
Greece elects a guy that says they will simply renounce their debts.
Portugal and Spain slide further into debt and say..... "why don't we do that too!"
US Politicians are reported talking about another try at "compromise on spending and the deficit". We saw how that turned out the last time.
That trifecta can get us a lot lower across the board.
Spain says it may have to once again revise its 2011 budget deficit upward. Spending by the four regional Spanish governments exceeded forecasts, driving up the national deficit for a second time. The government now projects a possible deficit that is equal to 8.9% of GDP, nearly three times the recommended maximum for nations using the euro. [View news story]
Governments across the western world are populated by overeducated idiots.
The US is no different. It is not difficult to spend less than you take in. It just means saying no to things that aren't a neccessity.
What is happening is a new form of theft. Government bureaucrats steal from future generations and set themselves up as the new "middle class". Meanwhile, the folks they actually should be serving see their freedoms, liberties and cash flows confiscated by the politicians and bureaucrats - for their benefit and the financial elites benefit.
Its long past the time that the people start to take power away from these idiots and restore their freedom and liberty. If it doesn't happen at the ballot box, followed up by responsible governing - then we will see social upheaval and potentially social breakdown to flush out this corruption.
Fed Governor Elizabeth Duke says that while the housing market is slowly mending, it's still in need of a lot of help. Any sustainable housing recovery depends on more action from Congress and federal regulators to stabilize the U.S. mortgage market. What can they do? They can start by loosening lending standards by banks and mortgage lenders, Duke says. That will go a long way towards attracting buyers back to the market. [View news story]
I own a business where part of the business is occasionally giving appraisals for a fee. My business would be liable if we gave an appraisal that is demonstrably wrong. And not just for the original fee.
You either stand behind your work or you don't. And if your negligent or corrupt or simply not very smart, then there should be potential consequences to that.
I totally disagree with the Fed Governor. Who says the market needs "help". Seems to me that we are focussed entirely on the wrong thing - the idea that higher housing prices are somehow inherantly good.
What about "affordable housing"? What about treating housing as a utility - a roof over your head and whatever fancy stuff your willing to pay for inside for your own pleasure?
The government should be pushing the banks to get all the houses they hold onto the market - flush it all out and then go from there. Likewise, zero programs for homeowners - can't pay the mortgage pack up and move to an apartment. Life goes on.
More on J.C. Penney (JCP): Q1 misses across the board on wider-than-expected losses. Additionally, the company says it's discontinuing its $0.20 per share quarterly dividend. On an annual basis, this will result in cash savings of approximately $175M, which will be used to help fund the broad-based transformation plan that the company announced in January. Shares -14% AH. [View news story]
How about Senior Executives and Board Members take the same pay cut as shareholders! I'll bet that dividend would be reinstated immediately!!!
Cheniere Energy Partners (CQP -3.5%) agrees to sell $1.5B in stock to investors affiliated with Blackstone (BX) at a 40% discount to the company's Monday closing stock price, in its continued aggressive effort to raise funds for construction of the Sabine Pass natural gas export facility. [View news story]
ie, you bought at market price and the Blackstone crowd paid 40% less than you for the same share.
Shares of Accretive Health (AH +4.4%) bounce after the company submits a 29-page reply to questions raised by Senator Al Franken after Minnesota's AG alleged that AH used potentially illegal tactics to collect payments from patients at a Minnesota health facility. In its reply the company insisted it did not violate any federal laws related to patient privacy or debt collection and said it "appreciates the opportunity to set the record straight." [View news story]
I'm all for paying for what you buy. And I don't believe health care is "free". But no way should the halls and emergency rooms in a hospital be filled with debt collectors.
IF people don't pay their bill, there are legal methods of collecting money that don't involve subjecting sick/injured people to additional stress. Not to mention, they are effectively acting as judge and jury if people actually have challenged whatever the bill collector is saying they owe.
Twice in my life I've had a bill which I refused to pay. Once it was for goods sent to me that I didn't order. The second was for a doctor's bill.... from a doctor that didn't perform the service billed. Both times I had debt collectors send letters, threaten me on the phone, and once even showed up in person. I told them to pound sand and finally had a lawyer send a cease and desist letter threatening legal action given that I claimed I didn't owe the money. But how many people 1. Realize they have avenues to challenge the claim. 2. Have the resources to afford a lawyer. 3. Have the werewithall to challenge the original bill that is erronous or fraudulent.
Bill collectors run legitimate businesses (I'd question many of their practices) but that place isn't in the hospital. If Hospitals want to be proactive on the revenue side I'd suggest posting cash prices on the doors when you walk in and offer good discounts to people who pay for service!
Cheniere Energy Partners (CQP -3.5%) agrees to sell $1.5B in stock to investors affiliated with Blackstone (BX) at a 40% discount to the company's Monday closing stock price, in its continued aggressive effort to raise funds for construction of the Sabine Pass natural gas export facility. [View news story]
Why not simply do an offering to current shareholders?????
I'm fine with needing the cash and selling equity to get it - but this is a freaking giveaway. Try asking shareholders FIRST.
*$&%(#(*$&$*%$...
How surprising. Greece's plan to get citizens to pay property taxes by bundling them with electricity bills has failed, with the Public Power Corporation - itself bailed out last month - no longer trying to collect (even getting an ok from the finmin). Government (Troika) pencil-pushers had hoped the scheme would raise €1.7-2B in Q4 last year. [View news story]
Greece is now basically broken. No Greek politician will be able to fix it as he/she will be opposed by fringe groups promising easy fixes to an unfixable problem.
Greece simply needs to exit the Euro, re-introduce the drachma and let the standard of living fall to the point where investment might kick in. It will be a big fall. Along with that they need total reform of their tax system and to actually prosecute those that don't pay their taxes.
In the USA we're seeing this play out in various states. Wisconsin public employees that demand the gravy train continue, California governor asking voters to give him more of their hard earned money, and federal employees earning 40-50% more than those they supposedly serve. Unless we turn the ship around it will end just as badly here as it did in Greece.
3 Reasons The Russian Ruble Is The Least Risky Investment Under Putin 2.0 [View article]
There is less desire to leave Russia today than there was prior to Putan's first go-around. Its still a fairly high number if you compare it to countries like Poland and Czech Republic. But that has to do with the wish for political freedom, not for economic reasons. The very rich do locate as much of their wealth as they can simply due to the fear of losing it to the state.
If Putin is willing to attack corruption in terms of both the bureaucracy and the politics then Russia would really boom. Personally I don't think he will...... but then again do you expect Congress to balance the budget? Do you expect the administration to prosecute anyone responsible for the financial crisis? Do you expect changes that eliminate the lobbyists on K street???
If you look at many of the things going on here in the USA from a different perspective and compare it - you'll find things aren't much different. Lobbyists take big dollars and get the government to ensure their businesses make more money. The government officials wink, wink leave their posts and then get paid big bucks to sit on said companies boards or work as their lobbyists. In Russia its just more direct - want something - pay for it. Not too much difference.
In Russia there are favored businesses due to the corruption. In the USA there are favored businessed due to the corruption. Government contracts handed out basically as political favors - guarantee certain percentages go to certain groups. Guarantee certain contracts are structured so only certain businesses meet the criteria. Again, in Russia its just more transparent.
And lets consider the fiscal responsibility of the governments? Russia balances their budget, they are investing trying to diversify their economy. USA? When did the Senate last pass a budget of any kind? Hmmm.....
Not so cut and dry!
Krugman, Lack Of Demand, Lack Of Jobs And The Future Of America [View article]
----------------------...
I've lived in countries with the supposed "one-payer" system.
For providing basic health care it works fine. For anything beyond that those with means go to private facilities where they can receive care for payment. And you'll find an increasing number of people purchase private health insurance to allow this. So you end up with a two tiered system - one with readily available services - and one with rationed services.
So there is no magical solution to our massive problem. My own opinion is to get both government and health insurance out of the current system. Get rid of the tax benefits of employer provided benefits. Get the government out of being the payer for a large percentage of services. Through in some common sense regulations - like preventing price gouging in emergency situations/rooms and I think we'd find a much more affordable health care future for the USA.
Coty withdraws its $10.7B takeover bid for Avon (AVP), saying the cosmetics direct seller has missed its deadline to start talks. Coty Chairman Bart Brecht: "I find it remarkable that since we made our revised proposal ... no one from Avon's Board or management has been willing to speak with us." (PR) [View news story]
Who's kidding who? Most management team's these days don't view themselves as having fiduciary responsibilities - they just care about their next bonus. Shareholders?? Suckers!
While "bailout" is usually associated with the eurozone, Fox Business' Gerri Willis has a poll asking whether U.S. taxpayers will be forced to bail out California. The survey comes two days after Governor Jerry Brown said the state faces a $16B black hole. [View news story]
I'd argue that their voters are highly responsible for the increased federal spending that necessitates the 314 Billion in taxes in the first place.
The pork rind land states as you call them, favor less government spending and thus less taxation.
California is not OK. Over-regulation is an understatement. Public employees are basically guraranteed to be millionaires if they stay in their jobs. At the same time as the public employees get rich, the rest of the population receive fewer services from these employees!!
A bailout of California might result in something much more ferocious than the tea party. Its long past the time that public employees lose their grip on the public purse and go back to being public servants. And its long past the time to tell folks that they are responsible for taking care of themselves.