business and finance - Page 34 of 38

Posted on July 7, 2015July 6, 2015 by James — 1 Comment

Good Luck Finding a Place to Hide as Global Markets Crumble

by Lisa Abramowicz

Investors tend to respond to impending doom by selling risky stuff and hiding out in safer assets — namely, bonds in places such as Germany and the U.S.

There’s a problem with that formula this time around: Traders aren’t so sure they can find anything that’s truly safe right now. So, instead of piling into sovereign debt of developed nations, traders are pulling their money out of those places as the Greekeconomy teeters on the brink of collapse, Puerto Rico talks about delaying some debt payments and China’s stock market suffers its biggest selloff since 1992.

Investors yanked $2.9 billion from European government bond funds last week, more than ever before, and pulled $699 million from short-term investment-grade U.S. bond funds, Bank of America Corp. and Wells Fargo & Co. data show. While these assets have traditionally been havens during rocky periods, they look less appealing now after more than six years of unprecedented monetary stimulus that pushed yields to record lows.

Why is that a problem? Well, the European Central Bank’s bond-purchasing program this year sent yields so low (negative, in fact) that investors revolted, selling German debt in the face of some signs of economic growth and causing unprecedented volatility. In the U.S., the economy has improved enough that the Federal Reserve is planning to raise interest rates this year from virtually zero, where they’ve been since 2008.

https://www.bloomberg.com/news/articles/2015-07-06/good-luck-finding-a-place-to-hide-as-global-markets-crumble

Posted on July 6, 2015July 6, 2015 by James — 2 Comments

Greeks Vote NO !

FINANCE MINISTER RESIGNS AFTER DECISIVE ‘NO’ BAILOUT VOTE

BY ELENA BECATOROS AND DEMETRIS NELLAS
ASSOCIATED PRESS

ATHENS, Greece (AP) — Greek Finance Minister Yanis Varoufakis resigned Monday, saying he was told shortly after Greece’s decisive referendum result that some other eurozone finance ministers and the country’s other creditors would appreciate his not attending the ministers’ meetings.

Varoufakis said Prime Minister Alexis Tsipras had judged that his resignation “might help achieve a deal” and that he was leaving the finance ministry for that reason.

“I shall wear the creditors’ loathing with pride,” Varoufakis said in his announcement.

Greeks voted overwhelmingly to reject creditors’ proposal of more austerity measures in return for rescue loans, in the country’s first referendum in 41 years Sunday.

The referendum “will stay in history as a unique moment when a small European nation rose up against debt-bondage,” Varoufakis said.

With his brash style and fondness for frequent media appearances at the start of his tenure at the ministry when the new government was formed in January, Varoufakis had visibly annoyed many of the eurozone’s finance ministers during Greece’s debt negotiations.

There was no immediate announcement of his replacement.

https://hosted.ap.org/dynamic/stories/E/EU_GREECE_BAILOUT?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2015-07-05-16-04-15

Posted on July 1, 2015July 1, 2015 by James — Leave a comment

Greek crisis deepens as loan repayment deadline passes

Kim Hjelmgaard and Marco della Cava, USA TODAY8:18 p.m. EDT June 30, 2015

Greece’s midnight deadline passed Tuesday for repaying $1.8 billion to the International Monetary Fund and other international creditors, deepening a financial crisis that threatens the Mediterranean nation’s membership in the European Union.

Despite an eleventh-hour effort by Greek lawmakers Tuesday to secure a new two-year debt deal before the deadline, European finance ministers reviewing Greece’s proposal concluded their conference call without offering a bailout extension.

The ministers agreed to convene again Wednesday to further discuss the details of a new series of loans from the eurozone’s European Stability Mechanism, its $560 billion rescue fund.

After the deadline passed (at 6 pm ET), Greece joined Zimbabwe, Sudan and Somaliain being in arrears to the IMF. Fitch Ratings has downgraded Greece’s government debt further into junk territory.

https://www.usatoday.com/story/news/2015/06/30/greek-crisis-deepens-as-loan-repayment-deadline-nears/29518847/

Posted on June 21, 2015June 21, 2015 by James — Leave a comment

So what if Greece leaves the European Union?

By George F. Will Opinion writer June 19 at 9:04 PM

Now come Greeks bearing the gift of confirmation that Margaret Thatcher was right about socialist governments: “They always run out of other people’s money.” Greece, from whose ancient playwrights Western drama descends, is in an absurdist melodrama about securing yet another cash infusion from international creditors. This would add another boulder to a mountain of debt almost twice the size of Greece’s gross domestic product. This protracted dispute will result in desirable carnage if Greece defaults, thereby becoming a constructively frightening example to all democracies doling out unsustainable, growth-suppressing entitlements.

In January, Greek voters gave power to the left-wing Syriza party, one third of which, the Economist reports, consists of “Maoists, Marxists and supporters of Che Guevara.” Prime Minister Alexis Tsipras, 40, a retired student radical, immediately denounced a European Union declaration criticizing Russia’s dismemberment of Ukraine. He chose only one cabinet member with prior government experience — a former leader of Greece’s Stalinist Communist Party. Tsipras’s minister for culture and education says Greek education“should not be governed by the principle of excellence . . . it is a warped ambition.” Practicing what he preaches, he proposes abolishing university entrance exams.

https://www.washingtonpost.com/opinions/the-greek-monetary-melodrama/2015/06/19/4ae915de-15ea-11e5-9518-f9e0a8959f32_story.html?postshare=4111434808557805

Posted on June 20, 2015June 20, 2015 by James — Leave a comment

‘It’s time to hold physical cash,’ says one of Britain’s most senior fund managers

It may be time to money under the mattress. High profile fund managers explain how to prepare for a ‘systemic event’

Ian Spreadbury, who invests more than £4bn of investors’ money across a handful of bond funds for Fidelity, including the flagship Moneybuilder Income fund, is concerned that a “systemic event” could rock markets, possibly similar in magnitude to the financial crisis of 2008, which began in Britain with a run on Northern Rock.

“Systemic risk is in the system and as an investor you have to be aware of that,” he told Telegraph Money.

The best strategy to deal with this, he said, was for investors to spread their money widely into different assets, including gold and silver, as well as cash in savings accounts. But he went further, suggesting it was wise to hold some “physical cash”, an unusual suggestion from a mainstream fund manager.

His concern is that global debt – particularly mortgage debt – has been pumped up to record levels, made possible by exceptionally low interest rates that could soon end, and he is unsure how well banks could cope with the shocks that may await.

He pointed out that a saver was covered only up to £85,000 per bank under the Financial Services Compensation Scheme – which is effectively unfunded – and that the Government has said it will not rescue banks in future, hence his suggestion that some money should be held in physical cash.

https://www.telegraph.co.uk/finance/personalfinance/investing/11686199/Its-time-to-hold-physical-cash-says-one-of-Britains-most-senior-fund-managers.html

Posted on June 12, 2015June 11, 2015 by James — 2 Comments

It is only a matter of time before the next recession strikes. The rich world is not ready

Jun 13th 2015

THE struggle has been long and arduous. But gazing across the battered economies of the rich world it is time to declare that the fight against financial chaos and deflation is won. In 2015, the IMF says, for the first time since 2007 every advanced economy will expand. Rich-world growth should exceed 2% for the first time since 2010 and America’s central bank is likely to raise its rock-bottom interest rates.

However, the global economy still faces all manner of hazards, from the Greek debt saga to China’s shaky markets. Few economies have ever gone as long as a decade without tipping into recession—America’s started growing in 2009. Sod’s law decrees that, sooner or later, policymakers will face another downturn. The danger is that, having used up their arsenal, governments and central banks will not have the ammunition to fight the next recession. Paradoxically, reducing that risk requires a willingness to keep policy looser for longer today.

https://www.economist.com/news/leaders/21654053-it-only-matter-time-next-recession-strikes-rich-world-not-ready-watch

Posted on June 9, 2015June 8, 2015 by James — Leave a comment

AP ANALYSIS: MORE ‘PHONY NUMBERS’ IN REPORTS AS STOCKS RISE

BY BERNARD CONDON
AP BUSINESS WRITER

NEW YORK (AP) — Those record profits that companies are reporting may not be all they’re cracked up to be.

As the stock market climbs ever higher, professional investors are warning that companies are presenting misleading versions of their results that ignore a wide variety of normal costs of running a business to make it seem like they’re doing better than they really are.

What’s worse, the financial analysts who are supposed to fight corporate spin are often playing along. Instead of challenging the companies, they’re largely passing along the rosy numbers in reports recommending stocks to investors.

“Companies are tilting the results,” says fund manager Tom Brown of Second Curve Capital, “and the analysts are buying it.”

An analysis of results from 500 major companies by The Associated Press, based on data provided by S&P Capital IQ, a research firm, found that the gap between the “adjusted” profits that analysts cite and bottom-line earnings figures that companies are legally obliged to report, or net income, has widened dramatically over the past five years.

https://hosted.ap.org/dynamic/stories/U/US_FUZZY_MATH?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2015-06-08-03-06-52

Posted on June 3, 2015June 2, 2015 by James — 2 Comments

Martin O’Malley has reportedly become Wall Street’s ‘public enemy number one’

HUNTER WALKER
JUN. 2, 2015, 6:21 PM

Fox Business Network correspondent Charles Gasparino claims a lot of his sources have been talking about Martin O’Malley since the former Maryland governor launched his White House bid on Saturday. And Gasparino says Wall Street is angry with the Democratic presidential candidate.

“Martin O’Malley is now like, I would say persona non grata — public enemy number one in in the halls of Goldman Sachs, in the halls of Black Rock, the big money management firm. All throughout Wall Street right now,” Gasparino said in an appearance on Fox Business on Tuesday.

According to Gasparino, O’Malley became Wall Street’s bête noire by taking a shot at the financial industry during his announcement. In that speech, O’Malley accused Wall Street of essentially trying to anoint Democratic frontrunner Hillary Clinton and former Florida Gov. Jeb Bush (R) as nominees in the 2016 race.

“Recently, the CEO of Goldman Sachs let his employees know that he’d be just fine with either [Jeb] Bush or [Hillary] Clinton. I bet he would,” O’Malley said, adding, “Well, I’ve got news for the bullies of Wall Street: The presidency is not a crown to be passed back and forth by you between two royal families. It is a sacred trust, to be earned from the American people, and exercised on behalf of the people of these United States.”

In a previous television appearance on Monday, Gasparino suggested O’Malley’s comments would make him the “last person” Wall Street would want to win the Democratic nomination.

Gasparino expanded on that analysis Tuesday. He claimed the financial industry “was not expecting” a presidential candidate to adopt the kind of aggressive approach towards Wall Street. Further, Gasparino suggested that even though O’Malley is polling far behind Clinton, there are fears his message could resonate and push Clinton “to the left” on Wall Street.

“Right now people on Wall Street are talking about Martin O’Malley. Now does he have a chance to win? I’m not a political guy, it would seem like odds are low based on everything that I know,” Gasparino said, later adding, “What they’re really worried about is not that he’s going to win. It’s that he’s going to force [Clinton] so far to the left with that resonating message.”

Gasparino said Wall Street fears this O’Malley effect could stop Clinton from doing “some of the things they want her to do like water down Dodd-Frank.”

“They really think that if she gets in there, that if Hillary Clinton gets in there, that Dodd-Frank will be watered down to the point where they can do proprietary trading using their own capital to trade which is outlawed right now. And various aspects of Dodd-Frank will be freed up so the banks can go back to making a lot of money,” Gasparino explained. “Not that they don’t make a lot of money now, but even more money, Clinton-era money.”

Posted on May 29, 2015May 29, 2015 by James — Leave a comment

Obamanomics: U.S. Economy Contracted 0.7% in First Quarter

By NELSON D. SCHWARTZMAY 29, 2015

The economy got off to an even weaker start this year than first thought, the government reported Friday, as economic activity contracted amid a disappointing trade picture and continued caution on spending by businesses and consumers alike.

The 0.7 percent decline in economic output in the first quarter of 2015 was a reversal of the initial 0.2 percent advance for the periodreported last month by the Commerce Department.

While statistical quirks and one-time factors like wintry weather in some parts of the country played a role, as did a work slowdown at West Coast ports, the lackluster report for January, February and March underscores the American economy’s seeming inability to generate much momentum.

Much of the revision was spurred by fresh data showing businesses added to inventories at a slower pace than first estimated, while net exports fell slightly more than first thought. A sharp pullback in energy exploration in the wake of falling oil prices is also putting pressure on business investment.

Most experts had expected Friday’s data to show a contraction in the first quarter, and virtually no mainstream economists believe the country is on the verge of a recession. Still, the weakness is a reason the Federal Reserve is not expected to raise short-term interest rates until the second half of 2015, after speculation that a June increase was possible.

https://www.nytimes.com/2015/05/30/business/economy/us-economy-gdp-q1-revision.html?_r=0

Posted on May 28, 2015May 28, 2015 by James — Leave a comment

Garrett Bill to Modernize SEC Disclosures Passes Committee with Unanimous Support

Scott_Garrett_took5_a_break_from_DC_theridgewood-blog

May 21, 2015

Full Committee Moves 13 Bills from Cap Markets Subcommittee

WASHINGTON, D.C. – Rep. Scott Garrett (NJ-05), Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, issued the following statement after the Financial Services Committee passed his bill, H.R. 1525, the Disclosure Modernization and Simplification Act of 2015 with unanimous support.

“The Financial Services Committee continued its important work to help eliminate burdensome red tape and make our government more efficient, effective, and accountable to the American people,” said Garrett. “As part of the JOBS Act, Congress directed the SEC to review its existing disclosure requirements and identify ways to make our current disclosure regime less burdensome for issuers and more useful for investors, but the agency has yet to act. The Disclosure Modernization and Simplification Act of 2015 will fix that by eliminating the unnecessary bloat of our current disclosure regime, while at the same time ensuring that investors receive all of the material information they need in order to make informed investment and voting decisions.”

The Disclosure Modernization and Simplification Act would require the SEC to take steps to modernize the current disclosure regime in three ways:

1) Require the SEC to eliminate any outdated or duplicative disclosure requirements that are immaterial to investors and to further scale disclosures for emerging growth companies and small issuers.
2) Allow issuers to file a summary page of their annual report that would include cross references to material information included in their 10-k.
3) Require the SEC to produce a broad study on how best to utilize technology in order to improve delivery and presentation systems for disclosures.

In addition to Rep. Garrett’s Disclosure Modernization and Simplification Act of 2015, the Committee also passed a number of bills previously passed by the Capital Markets and Government-Sponsored Enterprises Subcommittee.

H.R. 432, the “SBIC Advisers Relief Act of 2015”
H.R. 686, the “Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act of 2015”
H.R. 1334, the “Holding Company Registration Threshold Equalization Act of 2015”
H.R. 1525, the “Disclosure Modernization and Simplification Act of 2015”
H.R. 1675, the “Encouraging Employee Ownership Act of 2015”
H.R. 1723, the “Small Company Simple Registration Act of 2015”
H.R. 1847, the “Swap Data Repository and Clearinghouse Indemnification Correction Act of 2015”
H.R. 1965, the “Small Company Disclosure Simplification Act”
H.R. 1975, the “Securities and Exchange Commission Overpayment Credit Act”
H.R. 2064, the “Improving Access to Capital for Emerging Growth Companies Act”
H.R. 2354, the “Streamlining Excessive and Costly Regulations Review Act”
H.R. 2356, the ‘‘Fair Access to Investment Research Act of 2015”
H.R. 2357, the ‘‘Accelerating Access to Capital Act of 2015”

Posted on May 26, 2015May 26, 2015 by James — 4 Comments

Does Harvard have a secret history as a major force for evil?

By Sarah Rose

May 24, 2015 | 7:00am

“Verita$” was a best seller in Korea, author Shin Eun-jung’s native country, because she asks the question that’s hardly ever asked: Why Harvard?

Eun-jung says the third word a Korean baby learns, after “Mom” and “Dad,” is “Harvard.” She argues that this is a tragedy, because Harvard isn’t the global intellectual powerhouse of reputation.

Now, there are plenty of criticisms of Harvard, though rarely the one Eun-jung levels: that Harvard swanned its way to dominance by maintaining a false front of liberalism when it is, in fact, an arm of the governing right.

“Verita$” recites a litany of bad acts: the Salem witch trials, eugenics, a so-called “collaboration” with Joseph Goebbels and Heinrich Himmler, architects of financial collapse such as Robert Rubin and Larry Summers, McCarthyism, racism, sexism, tyrannical labor practices and “a poison called elitism.”

Her list is long. I might add Harvard produces such venerable alumni as Henry Kissinger, Ted Kaczynski and Dr. Oz.

https://nypost.com/2015/05/24/does-harvard-have-a-secret-history-as-a-major-force-for-evil/?utm_campaign=SocialFlow&utm_source=NYPFacebook&utm_medium=SocialFlow

Posted on May 24, 2015May 24, 2015 by James — Leave a comment

Sunny days ahead? Optimism is high as Jersey Shore season starts

MAY 23, 2015, 4:48 PM LAST UPDATED: SATURDAY, MAY 23, 2015, 11:41 PM
BY KATHLEEN LYNN AND KIM LUEDDEKE
STAFF WRITERS |
THE RECORD

Despite a decidedly unsummer-like chill, visitors flocked to the Jersey Shore on Saturday, strolling along its boardwalks and filling restaurants and shops in celebration of the long Memorial Day weekend.

“Today’s been nice. Good crowd,” said Nicky Kaslov, owner of the Beach boyz clothing store on the Seaside Heights boardwalk. “I’m hoping to have a good year.”

As the Memorial Day weekend kicks off the traditional summer tourism season, business owners and analysts say that lower gas prices, an improving economy and a craving for sunshine after a tough winter are likely to bring more visitors to the Shore this year.

Experts at Stockton University in Galloway predict a 4 to 5 percent increase in tourism at most Jersey Shore communities this summer — assuming the weather’s bright.

https://www.northjersey.com/news/sunny-days-ahead-optimism-is-high-as-jersey-shore-season-starts-1.1341582

Posted on May 24, 2015March 24, 2016 by James — Leave a comment

Career Coach: Now that you’ve graduated: Networking 101

MAY 24, 2015 LAST UPDATED: SUNDAY, MAY 24, 2015, 1:21 AM
BY ELI AMDUR
SPECIAL TO NORTH JERSEY JOBS |
NORTH JERSEY JOBS

Three weeks ago, this column’s headline read, “Congratulations, graduate. Now what?” The discussion was all about being proactive in your career and in your job search. Inherent in being proactive is networking, and much was made of it in the article.

https://www.northjersey.com/news/business/career-news/now-that-you-ve-graduated-networking-101-1.1341220

Posted on May 21, 2015May 21, 2015 by James — 9 Comments

Ridgewood man gets probation for role in Madoff scheme

file photo of Bernie Madoff

MAY 20, 2015 LAST UPDATED: WEDNESDAY, MAY 20, 2015, 1:19 PM
BY HUGH R. MORLEY
STAFF WRITER |
THE RECORD

Eric Lipkin was five years old when he met Bernie Madoff at his financial services firm.

He was a student and a track star at Paramus High School when he started doing company clerical work for his father, Irwin, who worked for Madoff. And by the time Eric Lipkin joined the company himself, right out of high school in 1991, he had developed a “reverence” for Madoff.

So said Lipkin’s attorney in U.S. District Court in Manhattan Wednesday, where he sought to explain why his client, a Ridgewood resident, participated in Madoff’s massive Ponzi scheme, preparing documents that he knew were fraudulent.

“One of the things that made him attractive to Madoff was he was very dependable, and he follows orders,” attorney James Kieran Filan told the court.

Filan offered the explanation at a 90-minute hearing, before a federal judge sentenced Lipkin, 41, to nine months home detention and 200 hours of community service for is role in the $17 billion scheme, to which he pleaded guilty in 2011. Lipkin also agreed in court to forfeit $1.4 million.

Judge Laura Taylor Swain said she was swayed to give a much lighter sentence than federal guidelines suggested because of Lipkin’s role, as described by prosecutors, in helping the government build a case against others involved in the Madoff scheme, and the help he gave the trustee pursuing funds from Madoff’s firm, Bernard L, Madoff Securities, to compensate the scheme’s victims. Lipkin faced a maximum sentence of 70 years in prison.

On Tuesday, former Madoff controller Enrica Cotellessa-Pitz, who has also cooperated with prosecutors, received a similar sentence.

“There is no question that Mr. Lipkin engaged in serious, gravely wrongful conduct, and did so knowingly in material respects,” Swain said, adding that the scheme “shattered dreams and changed lives forever.”

Still, she added, “he has been humbled by what has happened and the court is convinced that his remorse is genuine.”

https://www.northjersey.com/news/business/ridgewood-man-gets-probation-for-role-in-madoff-scheme-1.1338593

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