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White House Says Unemployment Benefit Lapse to Cost 240,000 Jobs - Businessweek
The Obama administration, bolstering a sustained push by Democrats to extend emergency unemployment benefits, warned today that a lapse may cost the U.S. as many as 240,000 jobs in 2014.
An estimated 1.3 million workers would immediately lose benefits if the emergency program -- extended repeatedly since its inception in 2008 -- is allowed to expire on Dec. 28, according to the report drafted by President Barack Obama’s Council on Economic Advisers and the Labor Department. During 2014, 3.6 million more would have their benefits cut off.
Top Stories - Lowering Corporate Tax Rate Unlikely to Create More Jobs - AllGov - News
The report, The Corporate Tax Rate Debate: Lower Taxes on Corporate Profits Not Linked to Job Creation (pdf), examined 60 large corporations and found that 22 of the 30 companies that paid the highest tax rates created nearly 200,000 jobs over a five-year period.
Meanwhile, those companies that paid little or no taxes actually laid off employees— more than 51,000 during that same period.
Businesses that created jobs included Smuckers, Nordstrom, Hershey, and Automatic Data Processing, according to the study. One example is Lowe’s, the second largest home improvement store in the country, which paid more than 36% in taxes over a four-year period and hired nearly 29,000 additional employees.
On the flip side, Verizon, the nation’s biggest wireless provider, earned $32 billion in U.S. profits during the same period and even received $951 million in tax refunds—yet cut 56,000 employees from its payroll.
Currently, the corporate tax rate stands at 35%. But thanks to numerous loopholes, corporations on average pay just 12.6% of their profits in federal income taxes, according to a recent study by the Government Accountability Office.
Obama Says Income Disparity Defining the Challenge of Era (1) - Businessweek
President Barack Obama, setting out a theme that he’ll pursue in the final years of his presidency, said growing income disparity in the U.S. is the “defining challenge or our time” and Washington must confront it.
Upward mobility for middle-income Americans has been stymied by economic changes and government policy, Obama said.
“The basic bargain at the heart of our economy has frayed,” he said in an address in Washington today that echoed a speech he gave two years ago in Osawatomie, Kansas, that set the stage for his 2012 re-election race. Increasing inequality “challenges the very essence of who we are as a people.”
Loan Profits Plummet with Declining Volume, Increased Compliance Cost
Mortgage profits took a big hit in the third quarter of 2013, dropping by more than half of that reported in the second quarter. The Mortgage Bankers Association (MBA) said independent mortgage banks and mortgage subsidiaries of chartered banks reported an average of $743 per loan profit in the third quarter compared to $1,528 for each loan originated in the second quarter. The average production income fell from 75 basis points to 38, marking the fourth consecutive quarter that productions profits have declined.
"Third-quarter profits were reduced by half because of several factors: per-loan production expenses that reached study-highs, declining production volume and reduced secondary marketing income," said Marina Walsh, MBA's Associate Vice President of Industry Analysis. "Historically, mortgage bankers have struggled to control fixed costs and right-size in a declining market, and the increasing costs of compliance and quality control only exacerbate an already difficult situation."
MBS RECAP: More Underperformance Turns Green Day Red
MBS and Treasuries diverged again today. This road more-traveled for MBS has several sources of justification and explanation, but it's really the combination that's resulting in such disparate paths. The factors include a distinct lack of interest from anyone other than the Fed. This, in itself, is at least partially a factor of the impending 'year-end' time frame where market participants tend to favor shorter duration and the least risky fixed-income investments.
I is for Ideology | Michael Hudson
Interest: Antiquity had no distinct word to distinguish interest from usury. The distinction was drawn by medieval Churchmen to contrast commercially productive loans with personal usury, on the logic that commercial creditors shared in the risk of profit-making business ventures under traditional legal terms that freed merchants from debt in cases where they lost the money through no fault of their own. In such cases commercial interest was supposed to cover the banker’s or other creditor’s cost of doing business, plus compensation for risk. (See however watered costs.) This Church ruling enabled credit to be extended to finance foreign trade (see agio). In practice, what legitimized the charging of interest-usury was borrowing by governments to spend on war.
Henceforth, the ancient term usury was limited to interest charges in excess of the legal maximum. The maximum limit was raised steadily over time, and finally removed altogether by the 1980s when interest rates peaked at 20 percent.
Interest, compound: See Compound Interest.
Interest, mortgage: Mortgage interest represents about 70 percent of all interest charges in the U.S. and British economies. This revenue now absorbs all the otherwise taxable profits for the commercial real-estate sector, leaving no revenue available for the tax collector (and in fact creating “book losses” that investors use to offset income earned on their other operations).
Cheap Central Bank Money Contributes to Dangerous Bubbles - SPIEGEL ONLINE
Reward offered in theft of rare Kentucky bourbon
FRANKFORT, Ky. — A $10,000 reward has been offered in the theft of more than $25,000 worth of much sought-after Pappy Van Winkle bourbon, the Franklin County Sheriff's Department said Monday.
An anonymous donor provided $9,000 of the reward and Bluegrass Crimestoppers added $1,000, Sheriff Pat Melton said.
"I'm very optimistic that whoever did this will be brought to justice," Melton said. "And I'm expecting this (reward) to make a huge difference."
Melton's office has been investigating a theft reported in October of 65 cases of the 20-year-old bourbon — one of the hardest to get in the country — from the Buffalo Trace Distillery in Frankfort, as well as nine cases of 13-year-old Van Winkle Family Reserve rye worth about $675.
This Ridiculous Stove Can Burn an Entire Tree Trunk | Wired Design | Wired.com
Haut-Brion ’08 Falls to Nine-Month Low as Index Retreats - Bloomberg
A case of Chateau Haut-Brion 2008, a first-growth Bordeaux from the Pessac-Leognan district on the south side of the city, sold for 2,700 pounds ($4,370) on the Liv-ex wine exchange yesterday, its lowest level since January.
The transaction was 13 percent below this year’s high of 3,100 pounds a case reached in April, according to data on Liv-ex’s Cellar Watch website. This week’s price was 3.6 percent below the level of 2,800 pounds at which the vintage traded in December last year.
The 2008 wine scored 96 points from U.S. critic Robert Parker, putting it among the top five vintages of the past 10 years, according the eRobertParker website.
Haut-Brion’s most expensive wine of the past quarter-century remains its 1989 vintage, which was awarded a perfect 100-point score by Parker. One case sold for 10,925 pounds at a Christie’s International Plc auction in London on Feb. 21 while another fetched 10,810 pounds at a Sotheby’s U.K. sale the same month.
THE SUBPRIME FINAL SOLUTION « The Burning Platform
1968 marked a turning point for America. LBJ’s welfare/warfare state had begun the downward spiral of a once rational country. We chose guns and butter, with the bill being charged to the national credit card. It was fitting that Wall Street introduced the credit card in 1968.
· There were 200 million Americans in 1968 and $2 billion of credit card debt outstanding, or $10 per person.
· By 1980 there were 227 million Americans and $54 billion of credit card debt outstanding, or $238 per person.
· By 1990 there were 249 million Americans and $230 billion of credit card debt outstanding, or $924 per person.
· By 2000 there were 281 million Americans and $650 billion of credit card debt outstanding, $2,313 per person.
· By July of 2008 credit card debt outstanding peaked at $1.022 trillion and the population was 304 million, with credit card debt per person topping out at $3,361 per person.
Doesn't Alaska share revenue with residents via a permanent fund kickback?
14 Bright Ideas for a Better Wood Stove - Popular Mechanics
YouTube - Homer Henderson - Lee Harvey Was A Friend Of Mine (1988)
Should Vodka Be Marketed as Gluten-Free?: Scientific American
Here's a new twist on an old drink: gluten-free distilled spirits. After a 2012 Alcohol and Tobacco Tax and Trade Bureau (TTB) interim ruling, gluten-free labeled vodkas hit the market this year, including National Basketball Association legend Shaquille O’Neal’s gluten-free “Luv Shaq.”
Manitoba mother fined $10 for packing 'unbalanced' daycare lunch for children | CTV News
A Manitoba mother was shocked to learn that she had been fined $10 by her daycare for not packing a ‘balanced’ lunch for her children.
Kristen Bartkiw, a mother of three from Rossburn Man., thought she had sent her children to daycare with a nutritional lunch consisting of leftover roast beef, potatoes, carrots, an orange and milk.
When her children, five-year-old Logan and three-year-old Natalie, returned home from Little Cub’s Den daycare, she found a note from daycare staff informing Bartkiw that she had failed to pack grains in her children’s lunch. The note said staff had given her children Ritz crackers as a supplement.
Foreign Investment in U.S. CRE Grows | Institutional Investors content from National Real Estate Investor
The volume of foreign capital flowing into commercial real estate investment has been on the rise for the past three years and the sales activity in 2013 is no different. During the first half of 2013, transaction volume was already ahead of the same period in 2012 by 63 percent. Year-to-date sales as of Sept. 1 show $22.2 billion in closed transactions, which is on pace to exceed the $27.6 billion that occurred last year, according to Real Capital Analytics.
The Minority Report:
Study finds social networks are key to city violence
A new study of gun violence in Chicago, led by Yale sociologist Andrew Papachristos, reveals that a person's social network is a key predictor in whether an individual will become a victim of gun homicide, even more so than race, age, gender, poverty, or gang affiliation.
In this study, funded by the Robert Wood Johnson Foundation, Papachristos examined police and gun homicide records from 2006 to 2011 for residents living within a six-square mile area that had some of the highest rates for homicide in Chicago. He found that 6% of the population was involved in 70% of the murders, and that nearly all of those in the 6% already had some contact with the criminal justice or public health systems.
In addition, those in the 6% had a 900% increased risk of becoming a victim of gun homicide—suggesting that being part of a risky network might offer more insight into one's chance of becoming a victim than other risk factors. "You could easily identify who the dots are on these network maps and direct the resources accordingly," he added.
G is for Groundrent | Michael Hudson
Government: From the Greek root cyber, meaning “to steer” (as in cybernetics), this social control function historically has been provided by public institutions. The modern and indeed, ancient role of government is to promote security, equality under the law, economic stability and fairness, and to provide legal redress against injurious acts so as to prevent economic polarization from downgrading the status of citizens. Public regulation aims at maintaining a level playing field via the rule of law, maintaining checks and balances between the private and public sectors, between producers, merchants and consumers, and between creditors and debtors.
The financial sector and its neoliberal supporters (see Chicago School, Free Market) seek to limit government authority in order to monopolize it for themselves, to prevent public regulation of monopoly rent, and to shift the public tax burden off their own shoulders. (See Oligarchy, Postmodern Economy, Regressive Taxation and Tax Shift.)
Groundrent: The formal term for that portion of rent paid simply for the use of property rights in land, especially in Britain where landownership often is separate from the ownership and use-rights of buildings and other capital improvements. Since the Norman Invasion of 1066, British landlords have charge the groundrent in the form of long-term leases separately from what the property user may pay for the buildings or other improvements. Such groundrent is a purely institutional property payment. As such, it is only a portion of the overall property rent. (See Economic Rent, which also is taken by monopolists in many sectors outside of agriculture.)
Talking Points for the 99% (Part 2) | New Economic Perspectives
The most deceptive argument put forward by the 1% narrative is that the kind of sovereign spending demanded by the 99% will result in a “culture of dependence.” We briefly touched on this earlier, but it is such a powerful volley, it seems appropriate to conclude by countering it in some detail.
“Culture of dependence” infers a vast constituency of citizens who will do nothing with their lives except collect welfare checks, food stamps, and housing vouchers. They have no motivation to seek work or employment—or to educate themselves with the goal of acquiring job skills—because all their basic daily needs are provided for by sovereign spending.
This is a bleak picture indeed. But it clearly has nothing to do with the 99% counter-narrative we are outlining here. The sovereign spending we are proposing pays citizens to do things—quite a lot of things, in fact. As we’ve already outlined, it proposes to pay citizens to immediately begin repairing each one of our dangerously deficient bridges; it proposes to pay them to design and build the sustainable, energy-efficient infrastructure we’re going to wish we had in the future; it proposes to pay citizens to provide health-care and health-maintenance services across our entire society; it proposes to pay them to teach our children and young adults all the various skills, knowledge and technological know-how our culture has to offer.
The 99% counter-narrative—based on the real possibilities of modern fiat currency and sovereign spending—doesNOT conjure up an image of lazy, indolent, unmotivated masses! Quite the contrary: it challenges every citizen—young and old alike—to imagine a better world, and then cooperatively organize themselves to make it happen. All that is necessary is for the 99% to grasp the real, democratic power that modern fiat currency makes possible.
Just count on dying poor, baby.
No way dude. I'm dying rich.
Higher Levels of Home Ownership Lead to Higher Unemployment, New Study Finds - Yahoo Finance
Encouraging young people to buy a home may be storing up trouble for the future in the shape of higher unemployment, according to a new study.
Researchers from Dartmouth College in New Hampshire and the U.K.'s University of Warwick say that when countries see an increase in home ownership, unemployment begins to rise a few years later, partly because people become more reluctant to move to find a job.
As well as reducing labor market mobility, the researchers said home ownership leads to longer commutes, which are a waste of time and money.
Homeowners are also more likely to be opposed to new businesses opening in their neighborhoods, stifling entrepreneurship.
Record Low Labor Participation Rate Not Due to Retirement or School | The Economic Populist
In other words, the 30 to 59 year olds, who make up 50% of the population which has the potential to work, account for pretty much all of the labor participation rate plunge since 2007. This same age group accounts for three quarters of the labor participation rate decline of the past year.
Anyone who insists the record low labor participation rate is due to baby boomers and people retiring is flat out wrong. It is clear the labor participation rate is dropping for people in the prime working years. Any way one slices it, the shrinking labor force is not due to baby boomers or magically all young people went off studying their hearts out. Anyone can do the above exercise to prove it. All one needs is a spreadsheet, access to the Internet to obtain BLS data and a hell of a lot of time.
Closer Look Gap Between Primary and Secondary Mortgage Rates
Primary-Secondary Spread is the difference between an average mortgage interest rate and a representative yield on newly issued agency mortgage-backed securities (MBS) based on that loan and others like it (aka "current-coupon rate"). This spread remained relatively stable from 1995 to 2000 at about 30 basis points then widened to about 50 basis points through early 2008. In 2009 it soared to 100 basis points and in 2012 following the announcement in September of that year that the Federal Reserve would make additional MBS purchases it spiked temporarily to 150 basis points, a historic high.
Paleo Diet - Benefits Of Eating Meat
Wage Statistics Show The Rich Get Richer Again in 2012 | The Economic Populist
The rich get richer and income inequality in America continues with no end in sight. The latest evidence is from the social security administration The gap between rich and the rest of us continues to grow.
The social security administration keeps statistics on average and median wages as reported on Federal income taxes and contributions to deferred compensation plans. They use income tax data to calculate your social security benefits. Below is a chart of the average wage and median wage from 1990 to 2012. Median means 50% of all wage earners earned that wage or less.
The average wage has increased 110.7% since 1990, yet the median wage has only increased 89.8%. The reason the average wage has increased more than the median is the super rich. Average wages are calculated by taking the total compensation in America and dividing by the number of wage earners. The reason the median and average wage diverge is because those few at the top making millions push the average wage amount much higher.
S&P downgrades France's credit rating, angering Paris | Business | DW.DE | 08.11.2013
S&P on Friday downgraded France's credit rating to "AA", a notch below the previous "AA+", dealing a blow to President Francois Hollande's embattled government.
Chicago lawyer convicted in NY in tax fraud case - Yahoo Finance
NEW YORK (AP) -- A Chicago lawyer and certified public accountant was convicted Friday for his role in a 10-year tax fraud that generated $7 billion in phony tax losses, a scheme authorities have called the largest tax fraud in history.
Paul Daugerdas, the 63-year-old former head of the Chicago office of the now defunct Texas-based law firm Jenkens & Gilchrist, was found guilty of conspiring to defraud the Internal Revenue Service, evade taxes, commit mail and wire fraud and other crimes after a seven-week jury trial in federal court in Manhattan, U.S. Attorney Preet Bharara said.
Others have been convicted in connection with the scheme. In March, a former attorney in the law firm was sentenced to eight years in prison and was ordered to pay $190 million in restitution.
Daugerdas made $95 million in fees from creating and marketing tax shelters for wealthy clients but paid less than $8,000 in taxes when he owed more than $32 million, prosecutors said.
Yup! I'll always remember New York like this...
I lived through it. And I was never particularly terrified. Some of the best years of my life.
Rise of Halloween Culture Sees Backlash in Germany - SPIEGEL ONLINE
The popularity of Halloween, which is now celebrated by a fifth of Germans, according to a YouGov poll, has sparked debate over the Americanization of German culture.
Margot Kässmann, former head of Germany's main Protestant church umbrella group, said Halloween went against the tenets of the Lutheran Church. "[Martin] Luther wanted to free people of their fears of spirits, ghosts, and the devil. And today? You have children running around in scary costumes," she said in an interview with Dortmund-based daily newspaper Ruhr Nachrichten.
Kässmann said Halloween was a purely commercial event designed by big business to sell merchandise in the gap between summer barbeques and Christmas.
Tschorn rejects the church's accusations of commercialism, claiming that Christmas, Easter and even Mother's Day attract far more marketing money than Halloween. And he added that it was a bit rich for Lutherans to attack the sale of Halloween candy when the church has started selling Lutherbonbons, orange candies in wrappers bearing Luther's portrait.
Coniine - Wikipedia, the free encyclopedia
Coniine is a poisonous alkaloid found in poison hemlock (Conium maculatum) and the yellow pitcher plant (Sarracenia flava), and contributes to hemlock's fetid smell. It is a neurotoxin which disrupts the peripheral nervous system. It is toxic to humans and all classes of livestock; less than 0.2g is fatal to humans, with death caused by respiratory paralysis. Socrates was put to death by means of this poison in 399 BC. Coniine has two stereoisomers: (S)-(+)-coniine, and (R)-(-)-coniine, both of which are present in hemlock (see "Modern Chemical Studies", below). Coniine was first synthesized by Albert Ladenburg in 1886; it was the first of the alkaloids to be synthesized.
How to Protect Yourself if You Work in Real Estate - Cleveland Telecommuting | Examiner.com
What about the seal of Confession?
US spooks accused of listening to the Pope's phone calls as part of international spying operation - Mirror Online
American secret service agents allegedly eavesdropped on the phone calls of the Pope and his cardinals as part of their international spying operation.
Communications to and from the Vatican were allegedly listened in on as part of the 46 million conversations the National Security Agency (NSA) tapped in to in Italy.
Spooks eavesdropped on the cardinals before the conclave in March 2013 to elect the new Pope, as well as calls between them and Cardinal Bergoglio, who became Pope Francis, succeeding Benedict.
The allegations, made in Italy’s Panorama magazine, claim calls were classified by the NSA under four categories: "leadership intentions”: "threats to financial system"; "foreign policy objectives” and "human rights".
A spokesman for the Pope, Federico Lombardi said: “We have heard nothing of this and are not worried about it.”
Differences Between Past and Current FOMC Statements
CFTC to Furlough Workers After Collecting $1.7 Billion - Bloomberg
The Commodity Futures Trading Commission, the main U.S. derivatives regulator that pried $1.7 billion in fines and other penalties from the firms it regulates during the past year, is furloughing workers because it doesn’t have enough money to pay them.
“This is the budget reality we face,” CFTC Chairman Gary Gensler told employees today in an e-mail, which announced they would be asked not to work on as many as 14 days in the fiscal year that began this month. “I understand this is extremely tough news for your families and you. I want to thank each and every one of you for your dedication to this agency and your hard work, which is of great benefit to the American public.”
Freddie Mac - Freddie Mac Securitizes $1 Billion of HAMP Performing Mortgage Loans
MCLEAN, VA--(Marketwired - Oct 30, 2013) - Freddie Mac (OTCQB: FMCC) announced today that it has begun securitizing performing Home Affordable Modification Program ("HAMP") modified mortgage loans held in the company's mortgage-related investments portfolio. These loans were modified to assist borrowers who were at risk of foreclosure, thereby assisting them with keeping their homes. Since the US Treasury launched the program in March 2009, 229,000 borrowers have received permanent HAMP modifications on Freddie Mac-owned loans.
To be eligible for securitization, modified loans must be current for at least six consecutive months at issuance of the related PC. The vast majority of existing HAMP modified mortgage loans held by Freddie Mac are step-rate mortgages. These performing step-rate HAMP modified loans may be pooled into the new Freddie Mac Modified Step Rate PCs with the new "HA-HD" prefixes. Performing HAMP modified loans that are fixed-rate and do not have the step-rate feature will be securitized into the existing Freddie Mac Modified Fixed Rate PCs with "MA-MD" prefixes (introduced in May 2013). Loans securitized with the "HA-HD" and "MA-MD" prefixes are not TBA deliverable. The PCs are eligible collateral for new Freddie Mac Giant PC securities.
Deutsche Bank Said to Market $479 Million of Rental Bonds - Bloomberg
Deutsche Bank AG (DB) is marketing $479.1 million of bonds backed by mortgages on 3,207 single-family rental homes owned by Blackstone (BX) Group LP, according to two people with knowledge of the offering.
A $278.7 million portion of the deal is rated AAA, the top credit rating, by Moody’s Investors Service, Kroll Bond Rating Agency and Morningstar Inc. The deal is the first of its type as Blackstone leads a $20 billion buying spree of single-family homes to rent by institutional investors.
That's half a million free cars.
Refinances Seen Dropping More Than 50 percent in 2014
The Mortgage Bankers Association (MBA) might not have been smiling as it prepared the economic forecast for 2014 it handed out today. The association's economists say they expect the volume of mortgage originations to drop by 32 percent next year as rising numbers of purchase applications fail to compensate for the fall-off in refinancing.
MBA expects to see $1.2 trillion in originations in 2014 compared to a projected $1.7 trillion in 2013. Purchase originations are projected to rise by 9 percent but refinancing originations will plummet by 57 percent.
Food stamps, milk prices on table in farm talks - Yahoo Finance
One of the reasons the bill's progress has moved slowly is that most of farm country is enjoying a good agricultural economy, and farmers have not clamored for changes in policy. But with deadlines looming, many say they need more government certainty to make planting decisions. Most of the current law expired in September, though effects largely won't be felt until next year when the dairy supports expire.
If Congress allows those supports to expire, 1930s and 1940s-era farm law would kick in, as much as quadrupling the price that the government pays to purchase dairy products. If the government paid that high a price, many processors would sell to the government instead of commercial markets, decreasing commercial supply and thus also raising prices for shoppers at grocery stores.
Cerberus Starts Commercial Mortgage Securities Hedge Fund - Bloomberg
Cerberus Capital Management LP, the $20 billion New York-based firm focused on distressed assets, started a fund to invest in commercial mortgage debt, according to a letter to investors obtained by Bloomberg News.
The Cerberus CMBS Opportunities Fund, which began Oct. 7, can bet on and against senior and subordinated commercial mortgage-backed securities, interest-only securities, commercial real estate collateralized-debt obligations and mezzanine loans, according to the letter.
Ex-NSA chief's indiscreet off-the-record conversation gets live tweeted by passenger - Telegraph
The former head of the National Security Agency was the victim of an eavesdropping campaign himself, when a blogger overheard him on a train briefing against the Obama administration, and then wrote about it on Twitter.
Michael Hayden, who also once headed the CIA, was talking on his mobile phone after boarding a train to Newark, New Jersey, from Washington. He was giving an interview to journalists “on background”, whereby he would be quoted as a “former senior administration official”, when Tom Matzzie overheard him and immediately divulged the best bits on Twitter.
5 New Ways the T.S.A. Searches You Before a Flight - Government - Mahwah, NJ Patch
Here are five new stealthy scans you might unwittingly undergo (well) before boarding your next flight:
1) Your employment and any criminal information. The T.S.A. has within its grasp all of our tax identification numbers and law enforcement information.
2) Your debtors. According to The New York Times, “an update about the T.S.A.'s Transportation Security Enforcement Record System, which contains information about travelers accused of ‘violations or potential violations’ of security regulations, warns that the records may be shared with a debt collection agency for the purpose of debt collection." ‘Potential’? Yikes.
The Failure of Obama's Healthcare.gov Website is Poetic Justice | The Economic Populist
Obama wants to import more foreign guest workers than there could possibly be jobs for in the United States per the demands of cheap labor corporate lobbyists. Yet again, instead of focusing in on jobs for Americans, Obama is busy pushing comprehensive immigration reform which will absolutely decimate U.S. workers by flooding the very weak U.S. labor market. This agenda will destroy even more lives and livelihoods for thousands of U.S. citizens. Now it is coming to light, Obama's flagship Affordable Care Act , along with the disastrous healthcare.gov, is fraught with H-1B and other foreign guest workers along with offshore outsourcing being used. This is poetic justice at it's finest. Obama is getting his just deserts from labor arbitraging American workers and the massive corruption caused by corporate lobbyists.
Fed Proposes Liquidity Standards to Keep Biggest Banks Safe - Bloomberg
The biggest U.S. banks would be required to hold enough easily sold assets to survive a 30-day credit drought under Federal Reserve liquidity rules that expand on international standards adopted earlier this year.
The Fed liquidity coverage ratio proposal approved unanimously today at a meeting in Washington goes further than the Basel III measure adopted in January and calls for earlier implementation than the European Union. The U.S. plan, most stringent for banks with more than $250 billion in assets or substantial international reach, seeks implementation by 2017 -- two years ahead of Basel’s deadline.
“The proposed rule would, for the first time in the United States, put in place a quantitative liquidity requirement that would foster a more resilient and safer financial system,” Fed Chairman Ben Bernanke said before the vote. The proposal would require setting aside about $2 trillion, and the Fed estimates U.S. banks are currently $200 billion short.
Home Page | Money For Nothing: Inside the Federal Reserve
Money in the Cloud: CRE Investors Continue Pursuit of Data Centers | Technology content from National Real Estate Investor
With cloud technology becoming the norm for data storage for everything from individual smartphones and laptops to Fortune 500 companies, data centers continue to be a hot property class.
In a report released last week, networking firm Cisco predicted that global cloud traffic will increase four-fold in the next four years, from 1.2 zettabytes today to 5.3 zettabytes in 2017. (A zettabyte is a 1 with 21 zeros, i.e., equivalent to one billion terabytes.)
Top commercial real estate investor Prudential Real Estate Investors just underwrote its first data center investment this month, in a $369 million joint venture with Digital Realty Trust Inc. for nine data centers totaling one million sq. ft. The 100-percent-occupied properties, with reported tenants such as Equinix, Amazon, Savvis and Verizon, are expected to generate cash net operating income of about $24.5 million in 2013, representing a 6.7 percent cap rate.