Oct 092019
 


Vilhelm Hammershoi Woman Seen from the Back 1888

 

White House Says It Will Refuse To Cooperate With Impeachment Inquiry (R.)
Oh My God, They Killed CNY! You Bastards (Every)
Powell Says The Fed Will Start Expanding Its Balance Sheet ‘Soon’ (CNBC)
Trade Wars Lose US Its Competitiveness Top Spot – WEF (AFP)
Boris Johnson Facing No-Deal Brexit Cabinet Rebellion (R.)
EU May Offer To Extend Deadline For Brexit Deal To June (G.)
Brexit Is A Necessary Crisis, Reveals Britain’s True Place In The World (G.)
Time To Reassess CrowdStrike’s Credibility (Kelly)
Jeffrey Epstein Accuser Expands Lawsuit Against Estate, Alleged Enablers (R.)
Refugee Explosion “Greater” Than 2015 To Hit Europe – German Minister (ZH)

 

 

Tried hard to find a nonpartial view, but that just gets harder all the time.

White House Says It Will Refuse To Cooperate With Impeachment Inquiry (R.)

The White House said on Tuesday it would refuse to cooperate with an “illegitimate, unconstitutional” congressional impeachment inquiry, setting Republican President Donald Trump on a collision course with the Democratic-led U.S. House of Representatives. Hours after the administration abruptly blocked a key witness in the Ukraine scandal from testifying to congressional panels, White House lawyer Pat Cipollone criticized the decision by lawmakers to proceed with an impeachment inquiry without a full House vote. “You have designed and implemented your inquiry in a manner that violates fundamental fairness and constitutionally mandated due process,” he said, adding House Democrats had left Trump “no choice.”


“To fulfill his duties to the American people, the Constitution, the Executive Branch and all future occupants of the Office of the Presidency, President Trump and his administration cannot participate in your partisan and unconstitutional inquiry under these circumstances,” he said. [..] White House lawyer Cipollone described the probe as “a naked political strategy” that violated Trump’s due process rights and was designed to reverse the 2016 presidential election and influence the November 2020 election. “Your transparent rush to judgment, lack of democratically accountable authorization, and violation of basic rights in the current proceedings make clear the illegitimate, partisan purpose” of the inquiry, he said.

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Brilliant both from Michael Every of Rabobank and the South Park crew.

“Like the NBA, we welcome the Chinese censors into our homes and into our hearts. We too love money more than freedom and democracy.”

Oh My God, They Killed CNY! You Bastards (Every)

”The upcoming ‘Top Gun 2’ stars Tom Cruise, still trying to look like he did in the 1980s, but no longer able to do all his own stunts: which is just like US foreign policy “ [..] the most honest commentary on where we now stand under globalisation comes not from the eschatological of intellectuals or politicians telling us democracy is under threat and free trade is great, not spotting Marxist and populist criticism that the two are linked; instead it comes from the scatology of ‘South Park’.[..] the most honest commentary on where we now stand under globalisation comes not from the eschatological of intellectuals or politicians telling us democracy is under threat and free trade is great, not spotting Marxist and populist criticism that the two are linked; instead it comes from the scatology of ‘South Park’


So is the US flailing or retreating like the Romans? No. It is focusing on its mighty financial weapons and physically fighting where it can achieve what matters most…if one is not thinking about Iran, but China. As Trump underlined: “WE WILL FIGHT WHERE IT IS TO OUR BENEFIT, AND ONLY FIGHT TO WIN.” Where does it benefit most fighting, globally? Three guesses… The greatest likelihood is still that if Trump gets past his latest tipping point then at some (tipping) point soon markets are going to cry “Oh my God, they killed CNY!” as the Chinese currency collapses.

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As Big As Japan.

Powell Says The Fed Will Start Expanding Its Balance Sheet ‘Soon’ (CNBC)

The Federal Reserve will soon start growing its balance sheet again, a response in part to the jolt to overnight lending markets in September, Chairman Jerome Powell said Tuesday. How the Fed will go about expanding the securities it holds will be explained in the coming days, though Treasury bill purchases will be involved, the central bank chief said during a speech in Denver, though Powell stressed the approach shouldn’t be confused with the quantitative easing done during and after the financial crisis. “This is not QE. In no sense is this QE,” he said in a question and answer session after the speech.


On monetary policy more broadly, Powell stuck to his recent script: He and his fellow policymakers view the economy as being strong but susceptible to shocks, particularly from a global slowdown, trade and geopolitics like a potentially messy Brexit. He said the Fed stands committed to supporting the recovery but is data dependent and not on a preset course of cutting rates. The Fed has reduced its benchmark rate twice in 2019 and is expected to approve a third cut late this month.

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Because remember, children: you can never grow fast enough. Just ask the Fed.

Trade Wars Lose US Its Competitiveness Top Spot – WEF (AFP)

The United States fell to second place behind Singapore in the World Economic Forum’s flagship Global Competitiveness Report, with the slippage linked in part to President Donald Trump’s trade wars. The Forum, organisers of the glitzy annual gathering of business and political elite in Davos, have released an annual competitiveness report since 1979 that assesses which economies are well placed to see productivity and long-term growth. While the report noted that the US “remains an innovation powerhouse” and the world’s second most competitive economy, some trouble signs have emerged, the Forum said.


“There are no two ways (about) it. It is important to ensure the countries are being open to trade,” said Saadia Zahidi, a Forum managing director, when asked to comment on the impact of the tariffs imposed by the Trump administration. She noted the lack of “hard data” on the impact of US tariffs imposed on several of its main economic partners, as the set of products impacted remains limited compared to overall trade. But, she said, “the sentiment” surrounding investing in the US “has been going down,” she told reporters in Geneva. “That will end up impacting long-term investment; that will end up impacting how decision makers are thinking; that will end up impacting the view of non-American business leaders (of) the United States. So it does matter in the long-term,” she added.

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The EU likes this.

Boris Johnson Facing No-Deal Brexit Cabinet Rebellion (R.)

British Prime Minister Boris Johnson is facing a new rebellion from his cabinet over concerns of a no-deal Brexit, with a group of cabinet ministers poised to resign, The Times newspaper reported on Wednesday. Culture Secretary Nicky Morgan, British Minister for Northern Ireland Julian Smith, Justice Secretary Robert Buckland, Health Minister Matt Hancock and Attorney General Geoffrey Cox are all on a “resignation watch list”, according to The Times report An unnamed cabinet minister cited by the newspaper said that a “very large number” of Conservative members of parliament will quit if it comes to a no-deal Brexit.


The Times said that ministers had warned Johnson in a cabinet meeting about the “grave” risk of the return of direct rule in Northern Ireland and raised concerns about Dominic Cummings, Johnson’s most senior adviser. “Cabinet will set the strategy, not unelected officials. If this is an attempt to do that then it will fail”, the report quoted another cabinet minister as saying. The report comes as the European Union accused Britain of playing a “stupid blame game” over Brexit after a Downing Street source told Reuters a deal was essentially impossible because German Chancellor Angela Merkel had made unacceptable demands.

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“What’s at stake is not winning some stupid blame game,” Tusk wrote in a tweet directed at the prime minister.”

EU May Offer To Extend Deadline For Brexit Deal To June (G.)

The European Union is poised to extend Brexit talks into as late as next summer after the European council and commission presidents dismissed Boris Johnson’s strategy as a “blame game”. A “range of dates” will now be in play at the meeting of European leaders next week but sources suggested the natural cut-off date would be June. With an extension of the UK’s EU membership now looking inevitable, other diplomatic sources suggested an unlikely outlier for an end date could even be ahead of a possible general election so as to force the Commons into accepting a deal. “But politicians like to keep things off their plates for as long as possible and so pushing it longer seems more realistic,” a senior EU diplomat said.

The negotiations over a deal are said to be effectively dead in Brussels after Downing Street’s extraordinary claims over the substance of a phone call between the German chancellor, Angela Merkel, and the UK prime minister. Merkel was said by an unnamed UK source to have told Johnson that Northern Ireland had to stay in the EU’s customs union. The official claimed that as a consequence a deal looked “essentially impossible, not just now but ever”. Tusk, the European council president, gave an insight into the frustration at the anonymous briefings over the Merkel call, the alleged content of which described by senior politicians in Berlin as “improbable”. The chancellor’s spokesman declined to comment on “confidential conversations”.

“What’s at stake is not winning some stupid blame game,” Tusk wrote in a tweet directed at the prime minister. “At stake is the future of Europe and the UK as well as the security and interests of our people. You don’t want a deal, you don’t want an extension, you don’t want to revoke. Quo vadis? [Where are you going?]” [..] In Berlin Detlef Seif, the point person on Brexit for Merkel’s party, the CDU, rejected the account given by Downing Street of the call between the two leaders. He said: “In my mind it is completely improbable that the phone call between Merkel and Johnson took place in the way it has been reported in the British media. “It would run counter to all the principles the German government has followed for the last three years, namely that the negotiations are led by the European commission.

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“It brings to light, in stunning clarity, Brexiters’ deluded political understanding of the UK’s place in the world.”

“..without it we will remain stuck in the delusional, revivalist politics of a banana monarchy.”

Brexit Is A Necessary Crisis, Reveals Britain’s True Place In The World (G.)

Today much of the capital in Britain is not British and not linked to the Conservative party – where for most of the 20th century things looked very different. Once, great capitalists with national, imperial and global interests sat in the Commons and the Lords as Liberals or Conservatives. Between the wars, the Conservatives emerged as the one party of capital, led by great British manufacturers such as Stanley Baldwin and Neville Chamberlain. The Commons and the Lords were soon fuller than ever of Tory businessmen, from the owner of Meccano toys to that of Lyons Corner Houses.

After the second world war, such captains of industry avoided the Commons, but the Conservative party was without question the party of capital and property, one which stood against the party of organised labour. Furthermore, the Tories represented an increasingly national capitalism, protected by import controls, and closely tied to an interventionist and technocratic state that wanted to increase exports of British designed and made goods. A company like Imperial Chemical Industries (ICI) saw itself, and indeed was, a national champion. British industry, public and private, was a national enterprise.

Since the 1970s things have changed radically. Today there is no such thing as British national capitalism. London is a place where world capitalism does business – no longer one where British capitalism does the world’s business. Everywhere in the UK there are foreign-owned enterprises, many of them nationalised industries, building nuclear reactors and running train services from overseas. When the car industry speaks, it is not as British industry but as foreign enterprise in the UK. The same is true of many of the major manufacturing sectors – from civil aircraft to electrical engineering – and of infrastructure. Whatever the interests of foreign capital, they are not expressed through a national political party. Most of these foreign-owned businesses, not surprisingly, are hostile to Brexit.

[..] Brexit is a necessary crisis, and has provided a long overdue audit of British realities. It exposes the nature of the economy, the new relations of capitalism to politics and the weakness of the state. It brings to light, in stunning clarity, Brexiters’ deluded political understanding of the UK’s place in the world. From a new understanding, a new politics of national improvement might come; without it we will remain stuck in the delusional, revivalist politics of a banana monarchy.

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High time. But is asking questions about CrowdStrike impeachable?

Time To Reassess CrowdStrike’s Credibility (Kelly)

Days before the Senate voted to confirm Brett Kavanaugh last year, a former FBI assistant director appeared on MSNBC to suggest the Supreme Court nominee had a major credibility problem. “This is not…an investigation about the sexual allegations, I think it really has moved toward credibility,” Shawn Henry, an NBC News analyst, told Nicolle Wallace on October 1, 2018. “At this point now, there are very clear allegations, and subsequent to the judge’s testimony, people have come out who appear to be credible who…appear to be contradicting his testimony sworn before the United States Senate.” Henry, clearly reciting Democratic talking points to imply Kavanaugh perjured himself before the Senate Judiciary Committee during his September showdown with Christine Blasey Ford, also referred to Ford as a “victim” and claimed that the FBI’s investigation into Kavanaugh’s testimony had “fallen short.”

Henry was presented to viewers as the channel’s “national security analyst,” but there was one title the network overlooked: Shawn Henry is a top executive for CrowdStrike, the cybersecurity firm hired by the Democratic National Committee to investigate the infamous hack of its email system in early 2016. Perhaps not coincidentally, the firm determined that the Russians were behind the intrusion. CrowdStrike’s June 2016 assessment remains the sole source of evidence to supply the pretext of the government’s Russian election interference claim; later, it would help bolster the Trump-Russia collusion fable. [..] Henry, the president of CrowdStrike’s Washington operation, is a regular contributor to both MSNBC and NBC News programs. (His affiliation with CrowdStrike, however, is never mentioned.)

Although he hasn’t worked for the FBI since 2012, Henry often weighs in as an FBI “expert,” opining on a variety of political issues from government shutdowns to the Kavanaugh debacle. Curiously, his views always come down on the side opposite of Donald Trump and the Republican Party. In March 2017, Henry—who worked for Robert Mueller’s FBI during Barack Obama’s first term—participated in a post-inauguration forum to discuss the implications of Russia’s “hacking” the 2016 presidential election. The panel also featured former Hillary Clinton campaign manager John Podesta and Marc Elias, the general partner at Perkins Coie, a politically-influential law firm based in D.C.. It was a symbolic trio. Perkins Coie hired CrowdStrike in the spring of 2016 on behalf of the DNC.

Instead of going directly to the FBI or other law enforcement agency about the breach, Democratic party leaders, working through Perkins Coie, retained CrowdStrike to find the culprits. Very cozy. But that wasn’t Perkins Coie’s only involvement in the Russia-hacked-the-election plotline. The law firm also hired Fusion GPS—who in turn hired British political operative Christopher Steele to author his infamous dossier—on behalf of the Clinton campaign and the DNC around the same time Perkins retained CrowdStrike. According to disclosure reports, the DNC paid Perkins Coie $7.2 million during the 2016 election cycle: The PAC also paid CrowdStrike more than $400,000 during the same time period. (The DNC has paid CrowdStrike nearly $80,000 so far this year.)

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#I’mWithHer.

Jeffrey Epstein Accuser Expands Lawsuit Against Estate, Alleged Enablers (R.)

A New York woman who said Jeffrey Epstein began grooming her for sex when she was 14 and later raped her expanded her lawsuit against his estate, naming several women who allegedly enabled the financier’s abuses and seeking to block the estate from shielding his assets from victims. In her amended complaint filed on Tuesday, Jennifer Araoz accused four women by name who once worked with Epstein of misconduct, and added more than 20 corporate defendants associated with the late financier. Araoz, 32, wants “justice not just against Mr. Epstein’s estate, but the network of enablers that surrounded him, and the network of corporate interests that surrounded him,” her lawyer Daniel Kaiser told reporters on a conference call.

“Every penny of his estate should be available to satisfy the claims of victims,” he added. Epstein, 66, died by hanging himself in his Manhattan jail cell on Aug. 10, two days after signing a will and putting his estimated $577 million estate into a trust. Kaiser said it would be obvious to any judge that this was a fraudulent effort to keep his money away from victims. The four women include Ghislaine Maxwell, Epstein’s longtime confidante; Lesley Groff, a former secretary; Cimberly Espinosa, a former executive assistant; and Rosalyn Fontanilla, a former maid who died in October 2016. All but Fontanilla are named as defendants.

Araoz accused the defendants of conspiring to identify and procure a steady stream of underage girls for Epstein to sexually abuse. The defendants “participated with and assisted Epstein in maintaining and protecting his sex trafficking ring, ensuring that approximately three girls a day were made available to him for his sexual pleasure,” the amended complaint said.

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It’s already started.

Refugee Explosion “Greater” Than 2015 To Hit Europe – German Minister (ZH)

The German government is warning that a number of indicators suggest Europe could be on the brink of witnessing a new refugee crisis explode on its borders. Germany’s Interior Minister Horst Seehofer said early this week that refugees and migrants are set to flood Europe on a scale even bigger that the peak of the 2015 crisis. “We must do more to help our European partners with controls on the EU external borders. We have left them alone for too long,” he told Germany’s Bild am Sonntag newspaper after returning from a visit to Greece and Turkey, where he inspected the renewed refugee crisis first hand. “If we do not do that we will once again face a refugee wave like in 2015 or maybe even greater,” Seehofer warned ominously.

Seehofer further said that if the EU doesn’t unite to find “strength to solve this problem problem” it faces total “loss of control” if and when the next major crisis hits. At the height of the crisis three years ago, which was driven by the vastly destabilizing wars in Syria and Libya, and by the turmoil left in the wake of the Islamic State caliphate in western Iraq, there were near weekly mass drownings and accidents involving migrants attempting to traverse the Mediterranean, as well as fires and unrest at makeshift refugee camps in France and Greece. It further created turmoil in the domestic politics of multiple EU countries, with a number of right-wing populist figures and parties coming to power on anti-illegal immigration platforms.

And now, with Turkey on the brink of a major military incursion into northeast Syria, the Middle East is about to witness a major new conflagration resulting in potentially millions of new refugees being pushed out of the Turkey-Syria border region. Coupled with that, Turkey’s President Erdogan recently threatened to release one million refugees on Europe if he can’t have his so-called ‘safe zone’ which is to reach some 30km deep (19 miles) inside Syrian territory. He threatened early last month: “We will be forced to open the gates. We cannot be forced to handle the burden alone,” while demanding that European countries give political support to the controversial plan that would end in annexing UN member Syria’s sovereign territory.

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Jun 222016
 
 June 22, 2016  Posted by at 8:16 am Finance Tagged with: , , , , , , ,  1 Response »


Harris&Ewing Painless Dentist, Washington, DC 1918

Nervy Global Investors Revisit 1930s Playbook (R.)
Fed Warns of Commercial Real Estate Bubble (BBG)
Federal Reserve Says US Stocks Have Gotten Expensive (MW)
Amsterdam Housing Market Is Overheating (BBG)
ECB Balance Sheet Hits Record High -With Stocks At 18-Month Lows- (ZH)
Some 66 Million Americans Have ‘Zero’ Emergency Savings (MW)
Increase In Refugees Reaching Aegean Islands Fuels Concern (Kath.)

Not a bad article, but it is really simple. 1) Centralization stops when growth does, 2) The only thing that’s really been growing for years is debt, and 3) You can’t borrow or buy growth.

Nervy Global Investors Revisit 1930s Playbook (R.)

Global investors are once again dusting off studies of the 1930s as fears of protectionism, nationalism and a retreat of globalization, sharpened by this week’s Brexit referendum, escalate anew. With markets on tenterhooks over Thursday’s “too close to call” vote on Britain’s future in the EU, the damage an exit vote would deal business activity and world commerce is amplified by the precarious state of the global economy and its inability to absorb any left-field political shocks. As such, the Brexit vote will not be an open-and-shut case regardless of the outcome. Broader worries about global trade, frail growth and dwindling investment returns have festered since the banking shock of 2007/08 and have mounted this year.

Stalling trade growth has already led the world economy to the brink of recession for the second time in a decade, with growth now hovering just above the 2.0-2.5% level most economists say is needed to keep per capita world output stable. Three-month averages for growth of world trade volumes through March this year have turned negative compared with the prior three months, according to the Dutch government statistics body widely cited as the arbiter of global trade data. And it’s not a seasonal blip. Last year saw the biggest drop in imports and exports since 2009 and their average annual growth of 3% over the intervening seven years was itself half that of the 25 years before, according to Swiss asset manager Pictet. 2016 is set to be the fifth sub-par year in row.

A study published by the Centre For Economic Policy Research shows this paltry pace of trade growth is also below the 4.2% average for the past 200 years. Foreign direct investment growth of 2% of world output is also at its lowest since the 1990s, while the hangover from the credit crunch has seen annual growth rates in cross-border bank lending grind to a halt from some 10% in the decade to 2008.

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First you blow a bubble, then you warn against it. Without using the term ‘bubble’, of course.

Fed Warns of Commercial Real Estate Bubble (BBG)

The Federal Reserve warned that prices in the commercial real-estate market may have run up too far too fast. Valuations in commercial real estate “appear increasingly vulnerable to negative shocks, as CRE prices have continued to outpace rental income,” the Fed said in its semiannual Monetary Policy Report to Congress. The Fed noted that prices exceed their pre-crisis peaks by some measures. The Fed included a special section on financial stability risks in the report, which accompanies Chair Janet Yellen’s testimony. The report said that even given “moderate’’ financial vulnerabilities, risks of external shocks, such as the U.K.’s possible exit from the European Union, pose stability risks. The report also highlighted issues related to credit exposures to the energy sector, money-market mutual funds and stock valuations.

The central bank said price-to-earnings ratios on a forward-looking basis for stocks have increased to a level “well above” their median for the past 30 years. “Although equity valuations do not appear to be rich relative to Treasury yields, equity prices are vulnerable to rises in term premiums to more normal levels, especially if a reversion was not motivated by positive news about economic growth,” the Fed said. The Fed said “some structural vulnerabilities are expected to persist” in money-market mutual funds even after Securities and Exchange Commission reforms go fully into effect in October. “Leverage for the non-financial corporate sector has stayed elevated and indicators of corporate credit quality, though still solid overall, continued to show signs of deterioration for lower-rated firms, especially in the energy sector,” the Fed said in its report. Strong U.S. bank capital positions contributed to the resilience of the financial system, the Fed said.

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Real estate bubble, stocks bubble: the Fed ia aware of all.

Federal Reserve Says US Stocks Have Gotten Expensive (MW)

Even the Federal Reserve is weighing in on valuations in the U.S. stock market. In its monetary policy report submitted to the Congress ahead of Federal Reserve Chairwoman Janet Yellen’s testimony, the central bank acknowledges that stock values have grown somewhat richer since the beginning of 2016. Here’s how they put it: “Forward price-to-earnings ratios for equities have increased to a level well above their median of the past three decades. Although equity valuations do not appear to be rich relative to Treasury yields, equity prices are vulnerable to rises in term premiums to more normal levels, especially if a reversion was not motivated by positive news about economic growth.”

The S&P 500 closed higher Tuesday, up 0.3% at 2,088 and it appears investors are shrugging off both the testimony and the report on valuations. Of course, not everyone views the Fed as an authority on stock values and some analysts and traders disagree with the notion that equities have gotten pricey. “No one looks to the Fed as a chief market strategist and markets have their own dynamics on valuing stocks,” said Quincy Krosby at Prudential Financial. In Crosby’s opinion “stocks are fully valued at these levels.” She says “what investors want to hear is whether companies’ earnings will start improving. Whether the Fed decides that stocks are undervalued or overvalued does not have an impact on prices.”

Wall Street tends to turn to the U.S. central bank for clues about the pace of interest-rate increases, the health of the labor market and to get a gauge on inflation. It’s rare that it offers specifics on sectors or assets but it isn’t totally unprecedented. Back in 2014, Yellen said valuations for technology stocks were stretched in her congressional testimony, resulting in a selloff in social-media names, which were booming at the time. Going back to mid-1990s, former Fed Chairman Alan Greenspan sounded the alarm on tech stocks too. But his famous “irrational exuberance” comments didn’t pop the tech bubble when he delivered them in 1996. It would take another four years before the air rushed out.

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The perversity of low rates.

Amsterdam Housing Market Is Overheating (BBG)

It’s getting hot in the Amsterdam property market. The Netherlands, the nation of tulipmania almost 400 years ago, saw prices in its capital city surge almost 21% in the first quarter. While the blame partly falls on a simple supply-and-demand imbalance, the signs are pointing to a potential squeeze. In London, by comparison, government data show prices rose about 14% from a year earlier, according to Savills Plc. In a market where almost half of properties are owned by non-profit corporations, mainly for social housing, there’s just not enough coming on to the market to satisfy buyers. After falling about 14% in five years, prices have rebounded recently and are now above pre-crisis levels.

“The Amsterdam housing market shows signs of overheating,” said Frans Schilder, who studies housing policy in the economics department at the University of Amsterdam. “The prices are absurd but I don’t expect them to fall in the near future.” Any houses coming up for sale in the Amsterdam region are scooped up immediately. The supply shortage is a hangover from the financial crisis, which restrained new building and led to more families choosing to remain in the city, as it was harder to sell properties at a profit. In the first quarter of 2016, all houses that came on the market were sold, nearly half for more than the asking price. The asking price for an average house rose 5% from a month ago in May while it was up 26% from a year earlier, the Dutch bureau of statistics said Tuesday.

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Imbalance sheet.

ECB Balance Sheet Hits Record High -With Stocks At 18-Month Lows- (ZH)

Draghi, we have a problem.

The European Central Bank's balance sheet has reached a new record high this week – surpassing the chaotic expansion peak in 2012 – as Mario Draghi prepares to unleash TLTRO-II, which will definitely increase this time (just like LTRO and NIRP didn't!)

"Fool me once" in 2011/12 but not in 2015/16.

Given the utter failure to create any 'real' economic gains via the expansion of the ECB balance sheet, the plunge in stock prices (and thus crushing the trickle-down wealth-creation mandate) leaves Draghi in the same boat as Yellen – utterly impotent.

 

Which is ironic because this is what Draghi just said…

  • *DRAGHI SAYS ECB ACTION PUT RECOVERY ON MORE SOLID FOOTING
  • *DRAGHI SAYS GROWTH, INFLATION WOULD BE LOWER WITHOUT ECB ACTION

Though we'll never know, can you imagine just how bad things are in reality?

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Excuse me? “Accumulating emergency savings requires establishing the habit.”

Some 66 Million Americans Have ‘Zero’ Emergency Savings (MW)

Around 28% of U.S. adults have saved “zero dollars” for an emergency, according to a survey released Tuesday of 1,000 U.S. adults by personal savings website Bankrate.com carried out by Princeton Survey Research Associates International, a polling firm. When extrapolated for the entire 234.6 million U.S. adult population, that’s equivalent to 66 million people. That’s down from 29% last year, but up from 24% in five years ago. Another 28% of adults have saved enough money to last six months, up from 22% from last year and a six-year high; 18% had some emergency savings, but not enough for six months. Generation Xers are in the worst position of all generations: 33% of 36- to 51-year-olds haven’t saved anything for an emergency.

Millions of Americans are struggling with student loans, medical bills and other debts, experts say, and although Central bankers hiked their short-term interest rate target last December to a range of 0.25% to 0.50% from near-zero, that’s still a small return for savings left in bank accounts. Many investors are behaving like another imminent rate hike is highly unlikely, MarketWatch columnist Jeff Reeves wrote this month. “Expenses grow faster than many Americans can save during the home-buying, family-raising years,” says Greg McBride, chief financial analyst at Bankrate.com. “Accumulating emergency savings requires establishing the habit.”

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Slowly going very wrong – again.

Increase In Refugees Reaching Aegean Islands Fuels Concern (Kath.)

The influx of would-be migrants into Greece from neighboring Turkey is decisively on the increase following several months during which the flow had been staunched thanks to a European Union deal with Ankara to crack down on people smuggling. Over the long weekend, 270 migrants arrived on Greek islands in the eastern Aegean while arrivals in the first 20 days of June came to 981. The renewed influx is putting increased pressure on reception facilities on the islands, which according to local authorities are already full. Meanwhile, Greek committees are continuing to process hundreds of asylum applications. Greek authorities have rejected dozens of these applications, of which 70 were upheld by appeal committees that ruled Turkey is an “unsafe country” to send migrants back to.

In an apparent bid to curb the number of rulings upholding appeals, the government passed a legislative amendment last week which removes the representative of the Hellenic League for Human Rights from the appeal committees, which feature two judges and a representative of the United Nations refugee agency. The HLHR rapped the government for changing the composition of the committees instead of applying pressure to ensure that Turkey becomes a safe country to make migrant returns viable. In a related development the UN revealed on Tuesday that the number of people displaced from their homes due to conflict and persecution last year exceeded 60 million for the first time since the organization was founded in 1945.

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