…Critically, much as we have pointed out numerous times, Fisher reminds his audience that, “[the Fed] is buying a little more than 90% of new gross mortgage backed security issuance,” amnd it is there that Mr. Fisher explains his preference for tapering the MBS purchases since “we have had a rebound in housing.”
The discussion extends to Dod-Frank’s ineptness, the subsidies for TBTF banks, and Fisher’s clear dismay at the ‘too-big-to-jail’ attitude [...]
The house of Representatives passed a bill not only making obamacare null and void, but also making it illegal to try an enforce it. This makes me proud to be from South Carolina.
“The state’s Freedom of Health Care Protection Act intends to “prohibit certain individuals from enforcing or attempting to enforce such unconstitutional laws; and to establish criminal penalties and civil liability for violating this article.””
Nikki Haley, the Governor of [...]
Under the immigration reform bill, some employers would have an incentive of up to $3,000 per year to hire a newly legalized immigrant over a U.S. citizen.
In avoiding one controversy — the cost of providing millions of newly legalized immigrants with ObamaCare subsidies — the Senate “Gang of Eight” may have risked walking into another.
Immigration Bill ‘Worse Than We Thought,’ Legalizes Relatives and Previously Deported
CNS News quotes Rep. Lamar Smith from [...]
Russian Market‏@russian_market3 min
It’s real fun to live in Eurozone, especially over weekends. If in Cyprus they took your money, in Portugal they pay your salary in bills.
Russian Market‏@russian_market6 min
#KNOCKknock Portugal Considers Paying Public Workers One Month’s Salary in Treasury Bills Instead of Cash – @djfxtrader
Paulo Dias‏@1ens2 h
# portugal BOMBASTIC Government to pay subsidy/pension cuts, declared unconstitutional yesterday, with government bonds.
Paulo Dias‏@1ens2 h
#portugal government to pay part of private/state salaries/subsidies with [...]
Bjorn Lomborg claimed on John Stossel’s television show last night that money isn’t being spent well to combat “global warming”:
“The Germans are spending about $110 billion on subsidies for these solar panels,” said Lomborg. “The net effect of all those investments will be to postpone global warming by 37 hours by the end of the century.”
Inequality has many sources, but political and technological dynamics are key factors.
by Charles Hugh Smith, Of Two Minds:
You may have seen this video on Wealth Inequality in America, which has gone viral. I have shown the same data for years in charts and discussed it at great length: Made in U.S.A.: Wealth Inequality (July 15, 2011).
The bottom 80% of American households held a mere 7% of these financial assets, while the top 1% held [...]
Thousands of coffee growers in Colombia have gone on strike demanding greater subsidies to protect them against falling international prices and a devalued local currency.
President Juan Manuel Santos called for a halt to the protest, arguing it was “unnecessary and inconvenient”.
There were a number of clashes with the police, and the opposition criticised the government’s stance on the crisis.
Any immigration package in which current illegal immigrants are made eligible for Obamacare — in the form of either exchanges or Medicaid — could increase costs to the federal government by between $120 billion to $200 billion in its first decade, according to internal calculations by the Republican side of the Senate Budget Committee that were obtained exclusively by The Daily Caller.
GOP Senate Budget Committee staffers explained to TheDC that [...]
When people compete for grants, subsidies, and other government handouts, economists see a phenomenon called rent seeking. The “rent” is the money being offered. When government gives money away, the people who compete for it incur costs—sometimes more money will be spent in total trying to compete for a grant than the amount of money being given away. These costs are rarely considered in policymaking, but perhaps they should be. [...]
Didn’t the Republicans get blamed for the need for Zucotti Park? Wan’t Obama on the side of the 99% before he insisted that these tax credits for uber rich companies be a part of the law? Apparently Goldman Sachs, JP Morgan, GE and Hollywood are NOT part of the 1%. I did not know that.
“The “fiscal cliff” legislation passed this week included $76 billion in special-interest tax credits for the [...]
The “fiscal cliff” legislation passed this week included $76 billion in special-interest tax credits for the likes of General Electric, Hollywood and even Captain Morgan. But these subsidies weren’t the fruit of eleventh-hour lobbying conducted on the cliff’s edge — they were crafted back in August in a Senate committee, and they sat dormant until the White House reportedly insisted on them this week.
The Family and Business Tax Cut Certainty [...]
The Federal Reserve is really deep into uncharted territory. In no other time in history has the Fed been so intricately involved in the overall economy. The Fed balance sheet has expanded to an incredible level under very little scrutiny by the public or elected officials, many who have a vested interest in keeping the status quo. The banking system has been bailed out but the working and middle class still struggle. There [...]
Farid A. Khavari
Florida Governor Rick Scott is planning to cut business taxes by raising the exemption on corporate income from $50,000 to $75,000, saying that this would eliminate the business tax for 2,000 more Florida businesses and reduce tax revenues by $8,000,000.
Are things really so bad in Florida that only 2,000 businesses earn between $50,000 and $75,000 in pre-exemption taxable income? And how do you get $8,000,000 in tax savings [...]
Subsidies encourage the type of behaviour they are subsidising.
And the Federal Reserve’s QE Infinity is subsidising the market for mortgage backed securities by taking them out of the market at a price floor.
Unsurprisingly, the market for mortgage-backed securities is near all-time highs:
And Wall Street is doing some wild and wacky things.
UBS has just launched a 16-times-leveraged MBS ETN. The ETN, called the ETRACS Monthly Pay 2x Leveraged Mortgage REIT, offers double the return of [...]
Apple’s basic new iPhone costs the company just over $200 to make, according to a preliminary component report from analysis firm IHS iSuppli.
The materials in the 16GB model of the phone, the firm said, cost Apple $199 while manufacturing shakes out to about $8 per phone. The iPhone 5’s materials come to a slightly higher total than the iPhone 4S. Andrew Rassweiler, IHS’s senior principal analyst for teardown services, said that the [...]
President Obama is proud of his bailout of General Motors. That’s good, because, if he wins a second term, he is probably going to have to bail GM out again. The company is once again losing market share, and it seems unable to develop products that are truly competitive in the U.S. market.
Right now, the federal government owns 500,000,000 shares of GM, or about 26% of the company. It would [...]
Maybe not THAT fast.
But Apple AAPL +1.14% says iPhone 5 pre-orders topped 2 million in the first 24 hours, more than double the launch velocity of the iPhone 4s last year.
For a bit of perspective, 2 million phones in 24 hours works out to:
83,333 iPhones an hour
1,388 iPhones a minute
more than 23 iPhones per second
So, at $200 a pop, minimum for the phones, plus the carrier subsidies, [...]
From Carpe Diem:
From a “rare guest post” on Steven Landsburg’s The Big Questions blog by David Bergeron, president and founder of solar-powered refrigerator company Sundanzer:
“Here is the real problem: Subsidies make solar appear viable today, so where is the motivation for an entrepreneur to risk money, or even focus on developing real energy alternatives when solar is “almost” there?
How can an inventor justify striving with the effort it takes to really develop [...]
Solyndra is back in the news again. The solar manufacturer, which received a $535 million taxpayer-funded loan from the Obama administration, filed for bankruptcy on September 6, 2011. 1100 employees lost their jobs.
On Thursday, the House Energy and Commerce Committee released a 154 page majority report on their investigation of Solyndra. Their conclusion: officials in the Obama administration ignored warning signs about the company’s financial conditions and then were “willing [...]
STOCKHOLM — People almost everywhere are file sharing these days, using computers to download music, films, books or other materials, often ignoring copyrights. In Sweden, however, it is a religion. Really.
Even as this Scandinavian country, like other nations across Europe, bows to pressure from big media concerns to stop file sharing, a Swedish government agency this year registered as a bona fide religion a church whose central dogma is that file [...]
USDA Gives Millions to Farmers Who Aren’t Actually Farming
The U.S. Department of Agriculture has doled out millions of dollars in subsidies to farms on which farming isn’t actually taking place, according a new report from government watchdogs. Billions more have gone towards supporting farms that don’t grow the crops for which they’re being subsidized.
USDA gave nearly $3 million last year to 2,327 farms that had not grown any crops since [...]
via google translate:
Comes the latest economic package of Spain. Over two and a half years will be cut about 65 billion euros in public spending. Freeze the thirteenth state employees, the increased taxes, reduced by 20% subsidies to political parties here, the main measures. And adding other last financial year, you get to snipping for 123 billion euros. But according to HSBC even this be enough to avoid the request for a bailout total [...]
The Employer Mandate
ObamaCare’s employer mandate is among the new laws most anti-growth provisions. When implemented, it will force most American business firms to offer government-approved health insurance to their employees or else pay new federal taxes for not doing so. This costly new requirement will make it more expensive for firms to hire workers in the future. Consequently, it will destroy jobs, and many firms are likely to slow down [...]
NEW DELHI — Every day some 3,000 Indian children die from illnesses related to malnutrition, and yet countless heaps of rodent-infested wheat and rice are rotting in fields across the north of their own country.
It is an extraordinary paradox created by a rigid regime of subsidies for grain farmers, a woeful lack of storage facilities and an inefficient, corruption-plagued public distribution system that fails millions of impoverished people.
And it is an embarrassment [...]
President Obama signaled in our interview that he was prepared to address some of the concerns raised by key Senator Jay Rockefeller, who called the Baucus bill a “big middle class tax increase” this week.
That means he’ll support more subsidies for middle class families.
But in our most spirited exchange, the President refused to accept the argument that a mandate to buy health insurance is equivalent to a tax.
Here it is:
POSTED AT 10:00 AM BY ZAID JILANI
The everyday corruption of our government by Big Money has real consequences for Americans, many of whom are struggling to feed their families.
Take the farm bill that Congress spent time working on this week. Senator Kirsten Gillibrand (D-NY) introduced an amendment to restore $4.5 billion in funding for the food stamp program, which assists some of the poorest Americans, by cutting “guaranteed profit for crop insurance companies from [...]
The government of China will soon resume paying subsidies to rural residents who trade in old vehicles for new, fuel efficient ones in an effort to rekindle demand amid a slowdown in the world’s largest auto market, a government official told Reuters on Monday.
Beijing has used such incentives before, as in 2009 when the government introduced a similar stimulus package with tax incentives for cars with engine sizes of 1.6 liters or [...]
By Farid Khavari
- Miami-Dade County continues to suffer from rising costs and decreasing revenues. Balancing the budget by cuts and layoffs is absolutely the worst thing to do. Cuts and layoffs only compound the problem, create renewed deficits. And if the next budget is balanced with further cuts and layoffs, the Miami-Dade County would be on its way to becoming a banana republic!
-The most prudent solution for balancing the budget [...]