S&P Warns of Cuts; Another US Downgrade Coming?

S&P Warns of Cuts; Another US Downgrade Coming? 
Published: Tuesday, 31 Jan 2012 | 9:09 AM ET
By: Antonia van de Velde
CNBC Associate Editor

Concerns over the size of United States debt reared their head once again as ratings agency Standard & Poor’s warned that health care costs for a number of highly-rated Group of 20 countries, including the U.S., could hurt growth prospects and harm their sovereign creditworthiness from the middle of this decade.


http://www.cnbc.com/id/46202656

Failure Generation : Davos elites to seek reforms of 'outdated' capitalism

Failure Generation : Davos elites to seek reforms of 'outdated' capitalism

Economic and political elites meeting this week at the Swiss resort of Davos will be asked to urgently find ways to reform a capitalist system that has been described as "outdated and crumbling."
"We have a general morality gap, we are over-leveraged, we have neglected to invest in the future, we have undermined social coherence, and we are in danger of completely losing the confidence of future generations," said Klaus Schwab, host and founder of the annual World Economic Forum.

"Solving problems in the context of outdated and crumbling models will only dig us deeper into the hole.

"We are in an era of profound change that urgently requires new ways of thinking instead of more business-as-usual," the 73-year-old said, adding that "capitalism in its current form, has no place in the world around us."

http://www.breitbart.com/article.php?id=CNG.be33fda73987ff722e71ca3a18f1bfaf.351&show_article=1

Fed to Weigh Further Easing Amid Doubts About Recovery

Fed to Weigh Further Easing Amid Doubts About Recovery
Published: Friday, 13 Jan 2012 | 11:55 AM ET Text Size
By: Steve Liesman
Senior Economics Reporter

Federal Reserve officials are seriously considering giving the US economy—and especially the housing market—an added jolt with more quantitative easing.

Fed officials are likely to discuss such a move at their Jan. 24-25 meeting, when the central bank   will issue its first quarterly forecast on interest rates under the new communication policy.

Two of the new voting members this year on the Federal Open Market Committee  , which sets interest-rate policy, have recently suggested they would support more assets purchases.

http://www.cnbc.com/id/45977098

US asks banks to keep more cash at hand

US asks banks to keep more cash at hand
Dec 20 03:33 PM US/Eastern

The US Federal Reserve on Tuesday moved to toughen capital requirements for the country's largest banks, saying their size and stretch could threaten the overall financial system.
The Fed said it was preparing to implement new capital and liquidity rules outlined by an international banking pact on nearly three-dozen banks with assets over $50 billion.

Rebuffing resistance from some of the country's most powerful financiers, the Fed said it would apply the extra-tough standards of the Basel III pact on 29 "globally systemically important banks."

That could mean even tougher standards for the eight American banks and bank holding companies on that list: Bank of America, BNY Mellon, Citigroup, Goldman Sachs, JPMorgan Chase, State Street and Wells Fargo.

http://www.breitbart.com/article.php?id=CNG.9d58c31cd5bdcb7896237b12cacad3c9.871&show_article=1

Pimco’s El-Erian Says U.S. Economic Setting ‘Terrifying’

Pimco’s El-Erian Says U.S. Economic Setting ‘Terrifying’
By Cordell Eddings and Betty Liu - Nov 22, 2011 12:20 PM ET

Pacific Investment Management Co.’s Chief Executive Officer Mohamed A. El-Erian said U.S. economic conditions are “terrifying” as the nation struggles to recover from recession.

The odds of the U.S. returning to recession are as high as 50 percent, El-Erian said during an interview on Bloomberg Television’s “In the Loop” with Betty Liu. U.S. economic growth was worse than expected and congressional policy makers are gridlocked over what to do about the economy and the deficit, which risk exacerbating an already weak recovery, he said.

“We have less economic momentum than we thought we had and we have no policy momentum,” said El-Erian, who also serves as co-chief investment officer with Pimco founder Bill Gross at the world’s largest manager of bond funds.

http://www.bloomberg.com/news/2011-11-22/pimco-s-el-erian-says-u-s-economic-situation-terrifying-as-growth-slows.html

Supercommittee failure could trigger US credit downgrade, economists warn

Supercommittee failure could trigger US credit downgrade, economists warn


Economists predict dire consequences if committee fails to reach agreement on how to reduce America's massive debt

Economists are warning of dire consequences if US politicians fail to make progress this weekend in tense talks aimed at reducing America's massive deficit ahead of a Wednesday deadline.

The bi-partisan congressional super-committee is charged with drawing up plans for a $1.2tn reduction in the nation's deficit by the middle of next week. Failure to do so will trigger an automatic "sequester" that will make cuts of that size to defence and social welfare programmes starting in 2013. But the two sides seem far from finding a solution after clashing over tax revenues.

While Wednesday is the official deadline for the supercommittee to report back, it has until Monday to tell the Congressional Budget Office about the impact any plan they send to Congress will have on the budget.

http://www.guardian.co.uk/world/2011/nov/18/supercommittee-failure-credit-downgrade-warning

Jobs Report: 'Things Are So Bad That This Looks Good'

Jobs Report: 'Things Are So Bad That This Looks Good'
Published: Friday, 4 Nov 2011 | 11:42 AM ET
By: Patti Domm
CNBC Executive News Editor

October's employment reports showed continued sluggish job growth, but positive revisions for earlier months takes away some of the sting and reaffirms the economy is growing.

The government reported 80,000 total jobs were added in October. There were 104,000 private sector positions added in professional and business services, leisure and hospitality, health care and mining, and 24,000 government jobs were lost.

The unemployment rate fell slightly to 9 percent from 9.1 percent in September.

"We have to remind ourselves that things are so bad that this looks good. In the context of what we're living through, it's not a bad report," said Dan Greenhaus, global market strategist at BTIG.

http://www.cnbc.com/id/45164551

Washington Policy Wonks need to look no further than recent History of 1990 Japan for answers.

Washington Policy Wonks need to look no further than recent History of 1990 Japan for answers. 
one small voice

Policy experts continue to be stymied by their inability to get the economy moving again .A look at recent history would suggest that both the talking heads and Washington policy wonks should know better and be better served if they took a look at the failings of Japan in the 1990's.

In the not too distant past Japan was faced with many of the same issues caused by collapsing property and stock markets,leaving Japanese banks upside down on much of the nations collateral. Japan's once invincible economy ran aground with similar policy missteps that our current policy makers are making .

First Japan embarked on printing money and zero interest rates to accelerate demand ,but this is like pushing on a string. It failed in the 1990's for Japan and in reality did nothing to effect the supply and demand curve. This priming the pump or inflating your way to prosperity has historically proven to have dangerous consequences such as run away inflation and in the worst case could lead to a currency collapse.

At the same time both Japan in the 90's and the US government today have engaged in a massive buildup of regulation for both personal and business behavior with the net effect being to suffocate business initiative.

Both countries engaged in wrong headed Government "Stimulus" plans that never work , I repeat NEVER. Most of the stimulus money is wasted or lands in the hands of public unions with little or no job creation. Again Japan in the 1990's embarked on the same foolishness with a huge capital investment plan for infrastructure .Like the fool hearty promotion of alternative energy in the US today where at the end of the day much of the money was wasted ,taxes have to be raised to cover the debt which further suppresses economic growth.

Japanese banks simple hid there loses and in many cases have yet to recognize the depreciated collateral.The US has similar issues with the destruction of the credit markets, the 2000 stealth stock market crash and the inability for the government to offer any reliable economic statistics. There is a consistent theme of not facing the reality of the current economic situation.

Finally for both countries their constant central and state government tweaking or interference with the economy and its unintended consequences  have created so much uncertainty that they have virtually stifled business decision making.

The current period of economic decline will not end until more substantive pro-growth policy's are enacted ,such as deregulation, shrinking the size and scope of government ,paying down debt and lowering taxes. It is just that simple.

Soros fails to quash insider trading conviction

Soros fails to quash insider trading conviction
By Sam Jones in London and Stanley Pignal in Brussels

George Soros, the billionaire hedge fund manager, has lost a case at the European Court of Human Rights to have his criminal conviction for insider dealing quashed.

The failed appeal in a 4-3 decision by the Strasbourg-based court is the latest twist in a nine-year battle by the 81-year-old Mr Soros to clear his name following his conviction in France in 2002.

The French criminal case hinged on trades that the Hungary-born investor had executed 14 years earlier in the stock of Société Générale that reaped his hedge fund, the Quantum Fund, $2.9m in profits.

Mr Soros was found by the court in 2002 to have had inside knowledge about the intentions of a group of super-wealthy French investors – the “golden granddads” – to bid for the bank.

http://www.ft.com/intl/cms/s/0/063501c2-f02e-11e0-977b-00144feab49a.html#axzz1a5LT8q5O

US becoming a less friendly business environment than China

US becoming a less friendly business environment than China
By Alan Rappeport in New York

Coca-Cola now sees the US becoming a less friendly business environment than China, its chief executive has revealed, citing political gridlock and an antiquated tax structure as reasons its home market has become less competitive.

Muhtar Kent, Coke’s chief executive, said “in many respects” it was easier doing business in China, which he likened to a well-managed company. “You have a one-stop shop in terms of the Chinese foreign investment agency and local governments are fighting for investment with each other,” he told the Financial Times.

http://www.ft.com/intl/cms/s/0/071f902c-e636-11e0-960c-00144feabdc0.html#axzz1Z9sXNRz1

Warren Buffett to host fundraiser for Obama in Chicago

Warren Buffett to host fundraiser for Obama in Chicago

Billionaire U.S. investor Warren Buffett will help raise money for President Barack Obama's re-election effort at a $35,800-a-ticket fundraiser next month in Chicago, an Obama campaign official said on Wednesday.

Buffett will attend the Oct. 27 event at a private home on Chicago's North Shore that is expected to include major donors to Obama's 2008 presidential run. The Democratic president, who is not expected to attend, is running for re-election in 2012.

http://www.chicagotribune.com/business/breaking/chi-warrent-buffett-to-host-fundraiser-for-obama-in-chicago-20110921,0,2294.story

Hair Care Bomber and Breaking the Buck !

Nothing could be more symbolic for the systematic failure of the policies of Barrack Obama than the continued talk by global leaders of removing the Dollar as the worlds reserve currency . An explosion of US Debt ,a declining economy ,no US job growth ,falling real estate values and an enormous growth in the size and scope of the US Government has lead to a continued decline in the value of the dollar and a suspicion the the US Government's backing is no longer worth very much.

The G20 lead by Beijing has begun to call for a new global currency as an alternative to the US dollar as the US deficit rocketed. The White House it self is estimates US Debt could reach nine trillion dollars over a decade.

The inability of the 70's Generation to offer any intelligent leadership has created a climate of catastrophic leadership failure on all levels. Not since the Carter Administration has the US global position been so weakened . It appears to be only a matter of time before events take a turn for the worse . This weeks terror threat and multiple arrests triggered by the 'hair care" bomber seem to be a sign of things to come. The empty talk may go well with the pro big government US media and rambling talk show hosts but does little to solve to days pressing problems.

On this blog I have long warned that the philosophy of the 70's Generation is the philosophy of failure. I have attempted several times to online what I see as the coming crisis. The dollar is now key . A collapse will signal the beginning of the long term demise of the US economy and perhaps the demise of freedom it self.

We Now Have A Total Gangster Government

what’s the point of all being covered if you cant get any health care?

Health Care Reform :

I see nothing in the Presidents Plan to alleviate the main short falls the current system.

In simple terms the main issue is our current 3rd Party Payer System separates the health care itself from the people responsible for paying the bills. This creates incentives to use the system as much as possible with no regard to need and interferes with the doctor patient relationship by a distant administrator who has no vested interest in a healthy out come only cost.

This type of system creates three major short falls :

1) access

2) choice

3) coast

The Presidents Nationalization of Healthcare does little to address these issues and in fact will exacerbate these very problems.

Replacing Insurance companies with a single government payer will even further distance the payment of services form the health care itself . It will also replace what little competition we have now with none at all. The Nationalization of Healthcare will also result in turning over your health care to the very regulators who through the byproduct of their attempt to regulate have reduced services, limited access ,limited choice and raised costs . Again the administration is trying to make the insurance industry the scape goat but has offered no evidence that the a Governmental Super Payer would act any differently and countless experiments across the world would suggest that Nationalization would make these issues even worse.

Basically one can take all the same arguments against the current system and make them against the Nationalization proposal. History has show us time and time again that diminished competition equals increased coast and lower levels of service. History has also shown us that over time single governmental systems cut services to cut costs. Are you willing to wait 2 years to get an MRI? Are you willing to be told your autistic child is a cost drain on the system and its not worth it or your Grandmother has out lived her usefulness and she should do her bit and be put to sleep?

This leaves the proponents of Obamacare with one issue ;universal coverage. The problem is high cost and poor service eventually leading to rationing effectively make this argument moot.
So the question remains what’s the point of all being covered if you cant get any health care?

Dow Jones Industrial Average Keeps Sinking

Dow continues to plummet on "stimulus package" .


Markets don't like socialism