Members of the New Jersey’s craft brewers guild— a group small enough to fit in one restaurant booth a few years ago and now numbering around 70 — worry state law is murky on whether they can sell their suds at farmers markets or if local food trucks can serve patrons at microbreweries. Associated Press Read more
“Black Monday” Brings Global Market Rout, Investors Mourn The Death Of Central Bank Omnipotence
Submitted by Tyler Durden on 08/24/2015 16:07 -0400
Peter Schiff Warns “The Fed Is Spooking The Markets, Not China”
Submitted by Tyler Durden on 08/24/2015 – 16:35
The correction may soon morph into a full-fledged bear market if the Fed makes good on its supposed intentions to raise interest rates this year. Have no illusions, while most market observers are quick to blame the sell-off on China, this market was given life by the Fed, and the Fed is the only force that will keep it alive. Unfortunately for the Fed, it won’t be able to get away with doing nothing for too much longer. Events may soon force it to show its hand. Then perhaps some may notice that the Fed is holding absolutely nothing and has been bluffing the entire time.
https://www.zerohedge.com/news/2015-08-24/fed-spooking-markets-not-china
Move would signal yuan maneuvering in the past two weeks is backfiring
By
LINGLING WEI
Updated Aug. 23, 2015 6:38 a.m. ET
BEIJING—The People’s Bank of China is preparing to flood the banking system with liquidity to boost lending, according to officials and advisers to the central bank, as its recent currency moves are squeezing yuan funds out of the market and renewing concerns over capital leaving Chinese shores.
The planned step—which involves cutting the deposits banks are required to hold in reserve—signals that the Chinese central bank’s exchange-rate maneuvering in the past two weeks is backfiring, forcing it to again resort to the reserve-requirement reduction, the same easing measure that so far has failed to help spur economic activity.
The move, which could come before the end of this month or early next month, would involve a half-percentage-point reduction in the reserve-requirement ratio, potentially releasing 678 billion yuan ($106.2 billion) in funds for banks to make loans.
It would be the third comprehensive reduction in the reserve requirement this year. Another option being considered at the PBOC is to target the cut only at banks that lend large amounts to small and private businesses—the ones deemed key to China’s future growth—though such a strategy hasn’t proven effective in the past in channeling credit to those borrowers.
https://www.wsj.com/articles/china-poised-to-boost-banks-liquidity-to-counter-weaker-yuan-1440325663
Y STUART LEAVENWORTH
In speeches and writings, Chinese President Xi Jinping often delivers the rhetoric of a Communist Party hardliner. And yet more than ever, capitalists worldwide are depending upon this Leninist – one who is in the midst of a power struggle – to prop up the global economy.
Concerns about China contributed to Wall Street’s biggest one-day sell-off last week since 2011, and the slide could continue when markets reopen on Monday.
Friday’s rout was triggered by a report that China’s manufacturing output had dipped to its lowest point since the 2009 global economic crisis. Investors increasingly fear China’s slowdown could be a tipping point for many emerging economies, many of whom grew dependent on selling commodities to China during its go-go days.
The 531-point drop in the Dow on Friday wasn’t all about China, of course. Investors also are worried about inflated equity prices, dropping oil prices, and the possibility the U.S. Federal Reserve could soon approve an interest rate hike. But China’s economic troubles loom large.
“The market may have overreacted,” said Charles Morrison, an Asia-Pacific expert who heads the East West Center in Honolulu. “But the Chinese manufacturing slowdown is a data point that creates concerns worldwide, because China’s manufacturing sucks up so much of the world’s resources.”
By some measures, China’s economy has grown to be equal in size with that of the United States, and it is still growing at a rate of roughly 7 percent yearly. But that’s a slowdown from previous years, and the impact is huge on China’s trade partners.
Read more here: https://www.mcclatchydc.com/news/nation-world/world/article31969311.html#storylink=cpy
New Jersey lost 26,100 jobs in June and July, the state’s worst two-month loss since the spring of 2009 at the end of the recession, nearly wiping out all the gains for the year.
Hugh R. Morley, The Record Read more
Evelyn Cheng | @chengevelyn
U.S. stocks closed deep in the red on Friday as global growth concerns accelerated selling pressure to push the Dow into correction territory. (Tweet This )
The Dow Jones industrial average fell more than 500 points, into correction territory for the first time since 2011 as all blue chips declined. In the last five years, the index has only had four instances with closing losses of more than 400 points.
“For investors the momentum and the drive of the market is now lower (than) it used to be because there’s no place to hide,” said Lance Roberts, general partner at STA Wealth Management. “Every time we hit the major technical points we kept selling.”
A traders noted that investors stopped looking at techincals and were plowing through them.
“It’s an expiration day and it looks like they’re to have for sale on the close maybe as much as a billion dollars,” said Art Cashin, director of floor trading for UBS.
The Nasdaq Composite lost more than 3 percent, also closing in correction territory and joining the other major averages in negative territory for the year.
https://www.cnbc.com/2015/08/21/us-markets-global-growth.html
Evelyn Cheng | @chengevelyn
12 Hours AgoCNBC.com
U.S. stocks closed near session lows on Thursday, off more than 2 percent, as investors weighed continued uncertainty about the timing of a rate hike and concerns about global growth headed by slowing in China.
The S&P 500 and Dow Jones industrial average both had their worst day since Feb. 3, 2014. ( Tweet This )
“I think the markets are overly pessimistic,” said Anthony Valeri, investment strategist at LPL Financial. “I think this sentiment is panicking over news from China, the Fed (and) oil at six-year lows.”
Weakening in emerging market currencies on the heels of China’s yuan devaluation last week added to worries of broad economic slowdown.
“I think the oil and the geopolitical problems are the real problems for the market because we’re looking at lower global economic growth, and lower global growth is going to weigh on the U.S. as well,” said Peter Cardillo, chief market economist at Rockwell Global Capital.
The S&P 500 fell into the red for 2015 and closed down 1.1 percent for the year. Consumer discretionary led all 10 sectors lower with a decline of 2.8 percent for its worst daily performance since June 1, 2012. Energy is the greatest laggard for the year so far, down more than 18 percent.
https://www.cnbc.com/2015/08/20/us-stocks-open-lower-as-oil-slide-growth-concerns-weigh.html
Lisa Abramowicz
What happens when the Federal Reserve loses its stranglehold over debt markets? Investors are finding out.
The selloff in corporate bonds is deepening and investors are seeking safety in the longest-dated government debt, which does best when the economy does worst. Defaults are rising as oil tumbles and investors are looking for the best ways to hedge against credit losses.
All this comes as the Fed does, well, nothing much. Instead, it’s China that’s taken the lead with new rounds of financial stimulus in the face of slowing growth. But some days it’s a free for all, with even Kazakhstan wielding its influence.
Aug 14, 2015
the staff of the Ridegwood blog
WASHINGTON, D.C. – Rep. Scott Garrett (R-NJ), Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, issued the following statement after the SEC announced a finalized pay ratio rule as required by Dodd-Frank:
“The pay ratio rule will do nothing to provide useful information to investors, improve our economy, or help struggling Americans find a job. What it will do is impose substantial costs upon American businesses and their shareholders, and make our capital markets less attractive for growing companies. We need to work to grow our economy and expand opportunity for all Americans—not create new red tape and regulations that do nothing to achieve those goal.
Garret also offered a special thanks to Ciaran, Jonathan, Michael, Allison, Catherine, Joe, and Kayla,all interns from his Washington, D.C. office, Garret said “for all of your hard work this summer! You did a great job, and I hope you learned a lot during your time on Capitol Hill.”
Norbert Michel ,CONTRIBUTOR
I follow the evolution and devolution of monetary and financial policy
Opinions expressed by Forbes Contributors are their own.
Why do I write so much about the myth that financial market deregulation caused the financial crisis? Because that false narrative has spread so far and wide. Even some folks who are otherwise friendly to free-markets have bought into it.
So here’s one more shot: financial markets were not deregulated in any meaningful way during the last 100 years.
It is true that federal regulators changed many rules and regulations over the century, but the notion that the new rules amounted to a lack of rules is dead wrong. Federal regulators have increasingly told banks and non-bank financial firms what they can do and how they can do it.
Last week, when discussing this topic, my friend Mark Calabria mentioned some evidence I had missed: Todd Conover’s Congressional testimony in the 1980s.
Conover was the head of the Office of the Comptroller of the Currency (OCC) from 1981 to 1985, and his 1984 testimony (all 655 pages) is available on the St. Louis Federal Reserve Bank’s website. The testimony is yet another piece of evidence that banks were not deregulated.
But it also serves as evidence that Dodd-Frank and the new Basel III capital rules’ emphasis on so-called macro-prudential regulation is not as new as regulators would like us to believe.
As they tell the story, the new regulations will make markets safer because now, finally, regulators will focus onsystem-wide safety (a macro-view) as opposed to focusing only on the safety of individual banks.
https://www.forbes.com/sites/norbertmichel/2015/08/10/the-financial-deregulation-that-never-was/
Amanda Diaz | @CNBCDiaz
David Stockman has long warned that the stock market is on the verge of a massive collapse, and the recent price action has him even more convinced than ever that the bottom is about to fall out.
“I think it’s pretty obvious that the top is in,” the Reagan administration’s OMB director said Thursday on CNBC’s “Futures Now.” The S&P 500 has traded in a historically narrow range for the better part of 2015, having moved just 1 percent higher year to date. “It’s just waiting for the knee-jerk bulls, robo traders and dip buyers to finally capitulate.”
Stockman, whose past claims have yet to come to fruition, still believes that the excessive monetary policy from central banks around the world has created a “debt supernova,” and all the signs point to “the end of the central bank enabled bubble,” which could cause a worldwide recession.
https://www.cnbc.com/2015/08/07/stocks-are-a-disaster-waiting-to-happen-stockman.html
August 7,2015
the staff of the Ridgewood blog
Ridgewood NJ, The number of people not in the labor force reached another record high in July, according to new jobs data released Friday by the Bureau of Labor Statistics.
The BLS reports that 93,770,000 people (16 and older) were neither employed last month nor had made specific efforts to find work in the prior four weeks.This is an increase of 144,000 over June’s record when 93,626,000 were not in the workforce.
labor force participation rate remained the the same as June at 62.6 percent. Before last month the labor force participation rate had not been that low since October 1977, when the participation rate was 62.4 percent .Despite hovering near the 38 year low. the unemployment rate remained at 5.3 percent suggesting more people were searching for jobs during the 1970’s and the incentive not to work was not as high.
John S. Roberts
August 1, 2015 3:38 pm
Back in April we told you about Dan Price, CEO of Gravity Payments, who said he would pay every single one of his employees $70,000 annually.
Every single one, from the lowest skilled workers on up.
Now, as expected, Price has fallen on hard times financially, even having to rent out his own home.
Employees who work for Gravity are now leaving the company, “spurred in part by their view that it was unfair to double the pay of some new hires while the longest-serving staff members got small or no raises.”
This was always going to be the outcome.
If everyone hits the jackpot, does anybody really win the lottery?
From BI:
Non-Accredited Equity Crowdfunding Investors Need a Path to Liquidity
Jul 27, 2015 by Scott Shane In VC & Angel Capital
PeerRealty, a real estate crowdfunding platform, recently introduced CFX, the U.S.’s first secondary market for equity crowdfunding shares. For accredited investors, this exchange will improve the liquidity of equity crowdfunding investments.
Unfortunately, only accredited investors can use the platform. Equity crowdfunding investments made by non-accredited investors remain as liquid as ice.
This lack of liquidity creates a big problem. With the implementation of the rules for Title IV of the Jumpstart Our Business Startups (JOBS) Act in June, non-accredited investors — people with less than $1 million in net worth or $200,000 in annual income if single and $300,000 if married — can now buy shares in private companies through equity crowdfunding portals.
But non-accredited investors can’t sell those same shares. Unlike accredited investors who can go to PeerRealty to sell their securities, unaccredited investors have to wait for the companies in which they have invested to go public or get acquired to cash out. And if venture capital and angel group investments are any guide to the time to exit for young companies, then these unaccredited investors will be waiting five to ten years for liquidity. Of course, that’s if the companies in which they have invested are the kind that will be purchased or go public.
Securities and Exchange Commissioner (SEC) Daniel Gallagher has recognized this problem, calling for a solution to the ill-liquidity of crowdfunding securities in a September 17, 2014, speech.
Specifically, he said, “I’ve called for the creation of ‘Venture Exchanges’: national exchanges, with trading and listing rules tailored for smaller companies, including those engaging in issuances under Regulation A.”
Congressman Scott Garrett, the New Jersey Republican who chairs the Subcommittee on Capital Markets and Government-Sponsored Enterprises of the House has taken the issue to Capitol Hill. He has put forth a discussion draft of the Main Street Growth Act (PDF) – a bill that would “amend the Securities Exchange Act of 1934 to allow for the creation of venture exchanges to promote liquidity of venture securities, and for other purposes.”[/fusion_text]
My goal at the convention is to make as many connections with both professionals and like-minded students. Exposure, to sum it up with one word. As a rising senior at Rutgers business school pursuing a bachelors degree in finance with a legal studies minor I am also seeking internship opportunities in the field of finance/ compliance for the fall/spring and/or summer. Eloisa Faria
Yes it’s to raise money for the Convention. Our story and goals are presented in the gofundme account below, but If you want more details about my personal goals/ why I want to attend,
Send Eloisa & Dina to ALPFA 2015!!
ALPFA is a national, not-for-profit professional association that creates opportunities, adds value, and builds relationships for its members, the community and its business partners while expanding Latino & Diverse Leadership in the global workforce. ALPFA Rutgers –Newark is a student chapter of this professional business association which strives to participate in the professional chapter’s events, build professional relationships and network with other business students and corporate professionals.
https://www.gofundme.com/E-DtakeALPFA2015
Eloisa Faria guaduated from Passaic County Community College with an Associates Degree in Business Administration and is a Standing Senior at Rutgers Business School where she is pursuing a Bachelor’s Degree in Finance with a minor in Legal Studies. She has maintained a 3.5 cummulative GPA and works as a Resident Assistant at Rutgers, Newark in order to give back to the community she fell in love with.
Dina Siyam is a graduate of Middlesex County College with an Associates degree in Business Administration and is a member of Phi Theta Kappa Honor Society. She is currently entering her Senior year at Rutgers Business School where she is pursuing a Bachelors degree in Accounting & Finance with a concentration in Real Estate Finance.
