Global Economy Bursting?

[Terrel L. Shields]

Now, Howard and his son understand that even though they have no presence in California, the State expects his firm (or the online host) to charge California sales tax and submit it to its Board of Equalization. They do so. But, unbeknownst to Howard and his son, their company might well owe income tax to California as well.

Appraisers with licenses in MO and OK will also get letters from the state dunning them for income tax for work performed in the state...even if that work is either not in the state but ordered by a bank there or work that is done there but ordered by a bank outside the state... go figure.

 

[Randolph Kinney]

Big Banks Flunk OCC Risk Tests

http://www.americanbanker.com/issue...s-1055128-1.html?zkPrintable=1&nopagination=1

Think corporate governance at the largest banks is weak? You're right, but you probably have no idea just how right you are.

 

[Randolph Kinney]

Japan hits out at S&P over 'significant' ratings problems

http://www.telegraph.co.uk/finance/...-SandP-over-significant-ratings-problems.html

Japan of course has been monetizing its own debt for two decades and has just passed the point where its population is no longer putting money away, meaning the Japanese bond market is completely supported by debt monetization now. Perhaps S&P should demonstrate its new zeal for fundamentals-based ratings by downgrading Japan a few more notches.

 

[Randolph Kinney]

Treasury Yields Below Inflation May Last Years

http://www.bloomberg.com/news/2012-...nflation-may-last-years-chart-of-the-day.html

As the CHART OF THE DAY shows, the so-called real yield on 10-year notes is less than zero for the second consecutive year. That hasn't occurred since the 1970s, according to data compiled by Yale University Professor Robert J. Shiller. The real yield is calculated by subtracting the 12-month percentage change in consumer prices from the notes' yield.

"Negative real rates will remain in place for at least a decade -- and maybe a generation," Garthwaite, who is based in London, wrote two days ago in a report.

 

[Randolph Kinney]

California Utilities Say Solar Raises Costs for Non-Users

http://www.bloomberg.com/news/2012-...ies-say-solar-raises-costs-for-non-users.html

Booming rooftop solar installations in California are bringing an unwelcome surprise to the homes and businesses that don’t have the devices: an extra $1.3 billion added to their annual bills.

Power companies in the biggest U.S. solar state are required to buy electricity from home solar generators at the same price they resell it to other customers, meaning utilities earn nothing to cover their fixed costs. The rules are short- sighted because eventually rates must be raised to make up the difference, according to Southern California Edison, which has joined with competitors to estimate potential losses.

“You get into a situation where you have a transmission and distribution system with nobody paying for it,” said Akbar Jazayeri, vice president of regulatory operations at Edison, a unit of Edison International (EIX) and California’s second-largest electric utility.

 

[Couch Potato]

There is a student loan bubble that expands everyday. What is it now $1 trillion and counting? Loans are still being given out like pre-housing crisis but it is on a smaller scale. With so many different ways to get a student loan who knows what is that number. It's not like higher education is getting cheaper.

Actually, higher education is getting cheaper. Just one of many such stories if you take the time to look. Of course "cheaper" does not mean "cheap."

 

[rrwolfpack]

That's a great article you posted Couch Potato. It is an interesting development to follow for the future of higher education in this country. I wish when I went to school tuition rates were frozen.

 

[Mile High Trout]

The debt perspective has a strong relationship to student loans.

http://www.washingtonpost.com/blogs...dit-card-debt/2012/03/06/gIQARFQnuR_blog.html

If tuition is getting cheaper, that does not mean that it's any easier to pay back. Inflation and all...

 

[Terrel L. Shields]

Booming rooftop solar installations in California are bringing an unwelcome surprise to the homes and businesses that don’t have the devices: an extra $1.3 billion added to their annual bills.

No surprise here...we've always had to subsidize such schemes. Where else do we force corporations to buy supplies from sources that simply want to sell to them without recourse.

If you were a true private company, why wouldn't you ask large solar suppliers to go off the grid and supply all their own electricity both day and night?

If you can afford a Solar system, why not get a bunch of batteries and supply your own juice. 20 deep cycle batteries, hooked in series in pairs, would provide 120 v. DC which an inverter would provide nice stable AC voltage to your house 24/7/ . An auto Rheostat and you're off to the races. Not a burden on the grid, no need to ever pay a bill to the Big E...

 

[Randolph Kinney]

Fitch Warns Of Increased Risk Of A US Downgrade

Read more: http://www.businessinsider.com/c3e35075d77ee72dac551fb107260b8b#ixzz2FVbMInVl

Ratings firm Fitch warned on Wednesday there was an increased likelihood it would strip the U.S. of its triple-A status if Washington does not prevent $600 billion of spending cuts and tax hikes from kicking in early next year.