Spending was little changed at $280.1 billion, and revenue dropped 17 percent to $87.3 billion. Corporate tax revenue in the past five months has plunged 45 percent from a year earlier.
Hello, gee wiz, when corporations do not make things, have profits and people lose their jobs, one cannot get as much tax as before!
This is just beyond scary and I'm turning into a conservative as of late. I'm super pissed at this insanity for they will not nationlize some of these financial institutions, tackle regulation right now and start killing some of these inane, nonsensical derivatives, are insisting on more guest workers (If you can believe this there is a bill to import more unskilled labor via H-2B guest worker Visas), will not stop illegal labor by enforcing anything, will not stop offshore outsourcing of jobs even when they are using public funds to do it....
are not targeting the "Stimulus" money to truly "stimulative" jobs...
now are saying they are first up going to pass more trade deals....
I mean this is just not what the people voted for...
I'm all for Stimulative spending, I know Keynesian works but this just ain't it.
can't let AIG collapse". Complete "nationalization" is not a collapse. Investors have to start taking "haircuts". Stop treating this supposed "risk takers" with kid gloves. OMG, if they take a haircut they are going to stop investing. F*ck that. Wipe out the remaining 20% - tell counterparties that sorry you are not getting 100% on CDS and based on that information let them re-value their crap assets.
operate like this? Wipe out the remaining 20% equity ownership and start an orderly liquidation and unwinding of the damage. This is blackmail plan and simple.
Allowing it to continue in this state is extremely dangerous. I don't buy this crap about a 'run on insurance' policies. Most people would not be surprised by a complete takeover of AIG and the dissemination of information is much quicker and wide spread than in the 1930's.
It is good to be back, my good man. There is so much work that we need to do to get this country back on its feet. Regarding education, if the "Visa people" don't take away jobs or help get us more jobs, I'm fine with it. But if the end result is a net negative on this front, well, you know where I stand.
My hope is that, while publicly distancing themselves from "protectionism," the administration has served notice to the rest of the world that our trade deficit will not be tolerated much longer. Thus, the emphasis on stimulating domestic demand instead of relying on exports. I think that the whole global community recognizes that it is the huge imbalance in global trade that has collapsed the economy.
Wishful thinking, perhaps, I know. As far as Ron Kirk is concerned, my hope is that his tax problems derail his nomination and that he is replaced with someone who truly understands what the trade deficit has done to this country.
Not directly a comment, but you might be interetested in this:
As the crisis gets bigger - it's not just the banks now, all countries are staring bankruptcy in the face - the solution needs to get bigger, too. Nationalising western banks - if it happens - won't help Mexico or the Ukraine. And if they fall, the domino effect could be catastrophic. So how about this suggestion (The Sander Solution):
- x% of all bank and savings deposits in the OECD above, say $1000, are requisitioned as forced loans and placed in a special IMF fund.
- This fund can be used to bail out countries ...
- ... and to buy up insolvent banks. Because it isn't national government doing it but the IMF, this might be politically acceptable.
How easy this would be depends on the value of x%. If only 2% of deposits were to be "borrowed", people would probably leave their money where it is rather than moving it out of the OECD. Much more, and there would have to be a swift and secret agreement and possibly even a 24-hour closedown of the banking system. possible, but unrealistic.
The programme would ideally generate a few trillion dollars - enough to make it absolutely clear that the IMF and national governments have the funds to achieve turnaround.
I'm afraid I can't find numbers for this suggestion I don't have access to the appropriate figures in order to enable to do the maths. Maybe you do?
Glad to see your post! We missed you and these updates.
On education, honestly they are so busy trying to labor arbitrage educated workers in the U.S. believe me, they will be after those jobs too through "guest worker Visas"...
but if we could get some sanity by putting U.S. workers first for jobs in the U.S....
I can see this smaller work group with advanced manufacturing skills be a way out.
Glad to see Anderson got a chocolate factory too as well as you mention local economies diversifying. That's one thing about Detroit, but my impression is they are diversifying too.
One thing we can do is...insist on automated drive- throughs at fast food restaurants. It's really difficult when franchise owners of In & Outs are forced to pay exhorbitant sums to minimum wage hispanics, many of whom require effort to verify their legal documentation. Indeed, having to use a part-time highschool student to go online and use E-Verify can be highly humiliating. Just ask Tim Geithner, or whoever is now heading up I.C.E. The Indian workers here know nothing about feelings of reverse discrimination or practices of favoritism to their own kind...all are extremely objective. Just ask the hiring teams at the top 25 Silicon Valley Tech Firms. They'll confirm that..."We love Indian workers. They're the folks we hire." And why not...they're willing to work at very reasonable wages...even if it mean stacking many bachelor new graduate engineers into single apartments.:-)
My understand is there was a coordinated "stimulus" previously but in a nutshell the EU is saying hey, let's regulate this right now and stop it right now and the United States is refusing.
i.e. those chocolate eating, shorter work week loving Socialists are dead on and as usual, America, at least those crafting "policy" are insane. ;)
Don't at least some nations in the EU have automatic triggers that kick in under predetermined conditions? I think Germany calls theirs Kurzarbeit, I think France has something similar. IOW, they already have a certain amount of stimulus planned for and structured. It would be short term, and if the depression continues, as it will, they'll have to address that, but it gives them breathing space to deal with the real problems, breathing space we don't have (It would be exquisitely funny if the chocolate eating socialists ride this out better than the macho free marketeers -- or would be if it weren't so desperately grim).
But since we're talking international, why would it not be possible for the G8 and anyone else interested to get together and deal with the problem holistically? E.g., someone has to be counterparty to all this debt, can we not net out what can be netted out, and for what remains agree that everyone take a haircut? Private equity can either come along or take an even bigger haircut, possibly amounting to decapitation. It's not like there are any good solutions at this point.
With Millions of Americans Unemployed how can we JP Morgan Chase, who received some TARP money suddenly help Indians instead of Americans.
Is there anything we can do about it? Oh America Wake Up
--------------------------------------------------------------------------------------------------------------------------------------
The second-biggest bank of the US, JP Morgan Chase, which acquired Washington Mutual and Bear Stearns recently, will increase its outsourcing to India by 25% this year to nearly $400 million. It will also manage the integration of the acquired companies from India to bring down the cost of integrating different information technology (IT) systems.
Right now, JP Morgan outsources $250-300 million worth of IT and back-office projects every year to Cognizant, TCS and Accenture, apart from to its own captive centre in Mumbai.
"JP Morgan CIO Guy Chiarello said last week that he will increase outsourcing to India, and will drive several integration projects from there," a New York-based expert, familiar with JP Morgan’s outsourcing plans, told ET last week, on conditions of anonymity. A spokeswoman for JP Morgan India could not reply to an email query sent by ET on Friday, and the bank’s spokesperson in the US too did not reply.
"JP Morgan is one of the first banks in the US to have fleshed out its outsourcing
strategy ever since the banking meltdown happened. Many others are still undecided about their IT spend," said a senior official at one of the technology firms, who did not wish to be quoted.
The bank, which cancelled its $5-billion outsourcing contract with IBM in 2004—following the merger with Bank One—had brought back around 4,000 IT staff in-house after the new CIO Austin Adams had proposed a "do-it-yourself" strategy for the merged entity.
"In this economic environment, Mr. Chiarello, the current CIO, wants to ensure that he helps JP Morgan meet cost-reduction goals," the expert added. With large global banks like Lloyds TSB and HBOS, and Bank of America & Merrill Lynch merging, India’s top tech firms, including Infosys, TCS and Cognizant, are bidding for at least three $100 million-plus contracts.
As these banks merge, they face a huge task of integrating their software applications, consolidating their data centres and other trading platforms into a single entity, so that their customers are able to transact without having to face any merger-related issues. And since offshoring will help them save costs by 30-40%, these merged banking entities are seeking to partner with a vendor having significant offshore presence. "Apart from looking at cost-saving opportunities, such as offshore outsourcing, these banks also want to partner with their existing vendors because they would know the systems better," said a consultant on condition of anonymity.
As reported by ET recently, Lloyds TSB—which merged with HBOS—is seeking partners to help the merged entity integrate its retail and wholesale banking systems through an IT platform. The company has already outsourced its HR functions to Xansa two years ago, in a five-year deal.
"Bazooka" Paulson was throwing everybody and everything into propping up the banks. Here are the GSE's being directed to take on more leverage last May (before takeover):
"The lowering of the prudential cushion was appropriate in line with the company’s progress and with the need to maintain safe and sound operations": OFHEO Director James Lockhart
I wonder if 1) he said that with a straight face, and 2) if anyone in the audience listened with a straight face.
Relevance...Point: Global elites have taken far too long to
grasp the urgency of the problem facing soldier-like folks who are on the firing line, namely working families. Which explains Obama's election. Go back and review the recent history of commentary on this debacle and it's clear to see that ALL of the major policy makers basically under estimated and under calculated the depthful seriousness of what is now starting to cascade. I belive that much of this was avoidable...at the policy level. I hold all in charge to account. Sadly, many now in top Obama policy posts were also hovering during the Bush era. And while I'm not strongly advocating a "Truth & Reconciliation Commission,"
it is safe to say that, at the present moment I AM OUTRAGED AS HELL!! A gallon of vaseline is way too late! (How's that for context?)
Apparently, now the nomenclature suggests a distinction between absolute and relative value. On the one hand your home has a real utility value...on the other hand you pay for it with money/currency, which has a fluctuating value. Is there, perhaps, a better, more intelligent way?
Bloomberg has this:
Hello, gee wiz, when corporations do not make things, have profits and people lose their jobs, one cannot get as much tax as before!
This is just beyond scary and I'm turning into a conservative as of late. I'm super pissed at this insanity for they will not nationlize some of these financial institutions, tackle regulation right now and start killing some of these inane, nonsensical derivatives, are insisting on more guest workers (If you can believe this there is a bill to import more unskilled labor via H-2B guest worker Visas), will not stop illegal labor by enforcing anything, will not stop offshore outsourcing of jobs even when they are using public funds to do it....
are not targeting the "Stimulus" money to truly "stimulative" jobs...
now are saying they are first up going to pass more trade deals....
I mean this is just not what the people voted for...
I'm all for Stimulative spending, I know Keynesian works but this just ain't it.
@&*)$@&*)!!!
This is a dupe post, I saw this AIG systemic risk argument and posted it AIG used fear to get latest bail out.
Then, read the actual risk amount, not the total amounts. they are less than the bail out money.
can't let AIG collapse". Complete "nationalization" is not a collapse. Investors have to start taking "haircuts". Stop treating this supposed "risk takers" with kid gloves. OMG, if they take a haircut they are going to stop investing. F*ck that. Wipe out the remaining 20% - tell counterparties that sorry you are not getting 100% on CDS and based on that information let them re-value their crap assets.
Break them up into regional baby AIGs.....
-------------------------------------
Moral hazards would not exist in a system designed to eliminate fraud.
operate like this? Wipe out the remaining 20% equity ownership and start an orderly liquidation and unwinding of the damage. This is blackmail plan and simple.
Allowing it to continue in this state is extremely dangerous. I don't buy this crap about a 'run on insurance' policies. Most people would not be surprised by a complete takeover of AIG and the dissemination of information is much quicker and wide spread than in the 1930's.
It is good to be back, my good man. There is so much work that we need to do to get this country back on its feet. Regarding education, if the "Visa people" don't take away jobs or help get us more jobs, I'm fine with it. But if the end result is a net negative on this front, well, you know where I stand.
My hope is that, while publicly distancing themselves from "protectionism," the administration has served notice to the rest of the world that our trade deficit will not be tolerated much longer. Thus, the emphasis on stimulating domestic demand instead of relying on exports. I think that the whole global community recognizes that it is the huge imbalance in global trade that has collapsed the economy.
Wishful thinking, perhaps, I know. As far as Ron Kirk is concerned, my hope is that his tax problems derail his nomination and that he is replaced with someone who truly understands what the trade deficit has done to this country.
Pete Murphy
Author, "Five Short Blasts"
Link
issued a combined $16.5 billion of debt guaranteed by FDIC. Guess the bond rating? That is right - AAA. Certainly because of FDIC guarantee.
Link
Not directly a comment, but you might be interetested in this:
As the crisis gets bigger - it's not just the banks now, all countries are staring bankruptcy in the face - the solution needs to get bigger, too. Nationalising western banks - if it happens - won't help Mexico or the Ukraine. And if they fall, the domino effect could be catastrophic. So how about this suggestion (The Sander Solution):
- x% of all bank and savings deposits in the OECD above, say $1000, are requisitioned as forced loans and placed in a special IMF fund.
- This fund can be used to bail out countries ...
- ... and to buy up insolvent banks. Because it isn't national government doing it but the IMF, this might be politically acceptable.
How easy this would be depends on the value of x%. If only 2% of deposits were to be "borrowed", people would probably leave their money where it is rather than moving it out of the OECD. Much more, and there would have to be a swift and secret agreement and possibly even a 24-hour closedown of the banking system. possible, but unrealistic.
The programme would ideally generate a few trillion dollars - enough to make it absolutely clear that the IMF and national governments have the funds to achieve turnaround.
I'm afraid I can't find numbers for this suggestion I don't have access to the appropriate figures in order to enable to do the maths. Maybe you do?
Glad to see your post! We missed you and these updates.
On education, honestly they are so busy trying to labor arbitrage educated workers in the U.S. believe me, they will be after those jobs too through "guest worker Visas"...
but if we could get some sanity by putting U.S. workers first for jobs in the U.S....
I can see this smaller work group with advanced manufacturing skills be a way out.
Glad to see Anderson got a chocolate factory too as well as you mention local economies diversifying. That's one thing about Detroit, but my impression is they are diversifying too.
One thing we can do is...insist on automated drive- throughs at fast food restaurants. It's really difficult when franchise owners of In & Outs are forced to pay exhorbitant sums to minimum wage hispanics, many of whom require effort to verify their legal documentation. Indeed, having to use a part-time highschool student to go online and use E-Verify can be highly humiliating. Just ask Tim Geithner, or whoever is now heading up I.C.E. The Indian workers here know nothing about feelings of reverse discrimination or practices of favoritism to their own kind...all are extremely objective. Just ask the hiring teams at the top 25 Silicon Valley Tech Firms. They'll confirm that..."We love Indian workers. They're the folks we hire." And why not...they're willing to work at very reasonable wages...even if it mean stacking many bachelor new graduate engineers into single apartments.:-)
but you might research it out and post.
My understand is there was a coordinated "stimulus" previously but in a nutshell the EU is saying hey, let's regulate this right now and stop it right now and the United States is refusing.
i.e. those chocolate eating, shorter work week loving Socialists are dead on and as usual, America, at least those crafting "policy" are insane. ;)
Don't at least some nations in the EU have automatic triggers that kick in under predetermined conditions? I think Germany calls theirs Kurzarbeit, I think France has something similar. IOW, they already have a certain amount of stimulus planned for and structured. It would be short term, and if the depression continues, as it will, they'll have to address that, but it gives them breathing space to deal with the real problems, breathing space we don't have (It would be exquisitely funny if the chocolate eating socialists ride this out better than the macho free marketeers -- or would be if it weren't so desperately grim).
But since we're talking international, why would it not be possible for the G8 and anyone else interested to get together and deal with the problem holistically? E.g., someone has to be counterparty to all this debt, can we not net out what can be netted out, and for what remains agree that everyone take a haircut? Private equity can either come along or take an even bigger haircut, possibly amounting to decapitation. It's not like there are any good solutions at this point.
With Millions of Americans Unemployed how can we JP Morgan Chase, who received some TARP money suddenly help Indians instead of Americans.
Is there anything we can do about it? Oh America Wake Up
--------------------------------------------------------------------------------------------------------------------------------------
http://www.businessweek.com/globalbiz/content/mar2009/gb2009039_431274.htm
The second-biggest bank of the US, JP Morgan Chase, which acquired Washington Mutual and Bear Stearns recently, will increase its outsourcing to India by 25% this year to nearly $400 million. It will also manage the integration of the acquired companies from India to bring down the cost of integrating different information technology (IT) systems.
Right now, JP Morgan outsources $250-300 million worth of IT and back-office projects every year to Cognizant, TCS and Accenture, apart from to its own captive centre in Mumbai.
"JP Morgan CIO Guy Chiarello said last week that he will increase outsourcing to India, and will drive several integration projects from there," a New York-based expert, familiar with JP Morgan’s outsourcing plans, told ET last week, on conditions of anonymity. A spokeswoman for JP Morgan India could not reply to an email query sent by ET on Friday, and the bank’s spokesperson in the US too did not reply.
"JP Morgan is one of the first banks in the US to have fleshed out its outsourcing
strategy ever since the banking meltdown happened. Many others are still undecided about their IT spend," said a senior official at one of the technology firms, who did not wish to be quoted.
The bank, which cancelled its $5-billion outsourcing contract with IBM in 2004—following the merger with Bank One—had brought back around 4,000 IT staff in-house after the new CIO Austin Adams had proposed a "do-it-yourself" strategy for the merged entity.
"In this economic environment, Mr. Chiarello, the current CIO, wants to ensure that he helps JP Morgan meet cost-reduction goals," the expert added. With large global banks like Lloyds TSB and HBOS, and Bank of America & Merrill Lynch merging, India’s top tech firms, including Infosys, TCS and Cognizant, are bidding for at least three $100 million-plus contracts.
As these banks merge, they face a huge task of integrating their software applications, consolidating their data centres and other trading platforms into a single entity, so that their customers are able to transact without having to face any merger-related issues. And since offshoring will help them save costs by 30-40%, these merged banking entities are seeking to partner with a vendor having significant offshore presence. "Apart from looking at cost-saving opportunities, such as offshore outsourcing, these banks also want to partner with their existing vendors because they would know the systems better," said a consultant on condition of anonymity.
As reported by ET recently, Lloyds TSB—which merged with HBOS—is seeking partners to help the merged entity integrate its retail and wholesale banking systems through an IT platform. The company has already outsourced its HR functions to Xansa two years ago, in a five-year deal.
"Bazooka" Paulson was throwing everybody and everything into propping up the banks. Here are the GSE's being directed to take on more leverage last May (before takeover):
"The lowering of the prudential cushion was appropriate in line with the company’s progress and with the need to maintain safe and sound operations": OFHEO Director James Lockhart
I wonder if 1) he said that with a straight face, and 2) if anyone in the audience listened with a straight face.
http://www.weforum.org/en/knowledge/KN_SESS_SUMM_23393?url=/en/knowledge...
Relevance...Point: Global elites have taken far too long to
grasp the urgency of the problem facing soldier-like folks who are on the firing line, namely working families. Which explains Obama's election. Go back and review the recent history of commentary on this debacle and it's clear to see that ALL of the major policy makers basically under estimated and under calculated the depthful seriousness of what is now starting to cascade. I belive that much of this was avoidable...at the policy level. I hold all in charge to account. Sadly, many now in top Obama policy posts were also hovering during the Bush era. And while I'm not strongly advocating a "Truth & Reconciliation Commission,"
it is safe to say that, at the present moment I AM OUTRAGED AS HELL!! A gallon of vaseline is way too late! (How's that for context?)
Can you please format your links and also quote or tell us something in the comment about it?
We don't want to just go "clicking links" all of the time unless it's worthwhile or explained why we should click.
To learn how to format links, see the user guide if you don't know how.
http://www.weforum.org/en/knowledge/KN_SESS_SUMM_23393?url=/en/knowledge...
Apparently, now the nomenclature suggests a distinction between absolute and relative value. On the one hand your home has a real utility value...on the other hand you pay for it with money/currency, which has a fluctuating value. Is there, perhaps, a better, more intelligent way?
Pages