DTB
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I do not think those distortions are occurring.
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Global Economy Bursting?
- Thread starter Austin
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I do not think those distortions are occurring.
Restrain
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You are buying "futures" for delivery at some point. There is no assurance that this amount of "item" will actually be there. Consider corn futures. A broker sells a futures contract on 5k bushels to be delivered in September. The corn hasn't even been planted yet. The contract is based on all sorts of assumptions: demand for use as feed stock or ethanol, weather forecasts, possible world demand, competition from world producers, etc. this contract will be traded at various prices until delivery, each price change based on these same assumptions, and may be traded multiple times on a single day. Brokers can make a good profit on a movement of pennies per bushel vs the going -in cost. However, in this example, the value is skewed by government programs, stores or lack thereof of corn, etc, so there is not a true value of corn on the market.
Every commodity price is distorted. For example, the federal government recently released regulations to set prices for cabbage. Unless you are in that particular field, you are not aware of market distortions.
Every commodity price is distorted. For example, the federal government recently released regulations to set prices for cabbage. Unless you are in that particular field, you are not aware of market distortions.
Terrel L. Shields
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in a related tidbit CALPERS former CEO was indicted a couple weeks ago.
[url]http://www.cnbc.com/id/100565067[/URL]
Noteworthy in the judge's ruling was that the opponents of Stockton filing bankrupcty, "did not exhibit" good faith efforts to negotiate. The judge indicated that there was no negotiations, it was all one sided - the unions did not budge and the Socialist Workers party is decrying the ruling claiming it would be an "assault upon the pensions" of employees...employees who were fully funded at 100% of their incomes? Plus their families were added cost free - a $500 million obligation that was not met. Even with the overly-optimistic projection of fund growth of 7.75%, they were going broke before the boom ended.
Randolph Kinney
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The Cyprus Deal and the Unraveling of Fractional-Reserve Banking
http://bastiat.mises.org/2013/03/the-cyprus-deal-and-the-unraveling-of-fractional-reserve-banking/
What happens when depositor can't withdraw their money or they must bear the loss of their deposits for bad asset lending?
http://bastiat.mises.org/2013/03/the-cyprus-deal-and-the-unraveling-of-fractional-reserve-banking/
What happens when depositor can't withdraw their money or they must bear the loss of their deposits for bad asset lending?
Randolph Kinney
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SoloPower's California job cuts arrive amid company restructuring
http://www.oregonlive.com/money/index.ssf/2013/04/solopowers_california_job_cuts.html
SoloPower will cut dozens of jobs from its San Jose, Calif., headquarters as it attempts to get production off the ground in Portland.
Executives told California officials that they would lay off 61 in San Jose by the end of April -- 44 in operations, 12 in research and development, and five in administration.
Executives renegotiated the $197 million federal loan guarantee meant to help finance subsequent manufacturing lines.
The U.S. Department of Energy was aware SoloPower presented a high risk before signing off on the guarantee, according to a Congressional report on the energy loans issued last year. Standard & Poor's classified it as a junk loan -- giving it a CCC+ rating in July 2011, one month before the deal was finalized.
http://www.oregonlive.com/money/index.ssf/2013/04/solopowers_california_job_cuts.html
SoloPower will cut dozens of jobs from its San Jose, Calif., headquarters as it attempts to get production off the ground in Portland.
Executives told California officials that they would lay off 61 in San Jose by the end of April -- 44 in operations, 12 in research and development, and five in administration.
Executives renegotiated the $197 million federal loan guarantee meant to help finance subsequent manufacturing lines.
The U.S. Department of Energy was aware SoloPower presented a high risk before signing off on the guarantee, according to a Congressional report on the energy loans issued last year. Standard & Poor's classified it as a junk loan -- giving it a CCC+ rating in July 2011, one month before the deal was finalized.
Randolph Kinney
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- North Carolina
California's Net Worth at Negative $127.2B, Audit Says
http://www.californiahealthline.org...-net-worth-at-negative-127-2b-audit-says.aspx
A new Bureau of State Audits report found that California's general fund spent $1.7 billion more than it received in revenues in fiscal year 2012, resulting in an accumulated deficit of about $23 billion and a negative state net worth of $127.2 billion. The report listed the state's long-term obligations at $167.9 billion, which did not include the more than $60 billion in unfunded liabilities for retiree health care.
The report, which covers the fiscal year ending June 30, 2012, says that the state's negative status -- all of its assets minus all of its liabilities -- increased that year, largely because it spent more than it received in revenue.
During the 2011-12 fiscal year, the state's general fund spent $1.7 billion more than it received in revenues and wound up with an accumulated deficit of just under $23 billion from several years of red ink. Gov. Jerry Brown has referred to that and other budget gaps, mostly money owed to schools, as a "wall of debt" totaling more than $30 billion.
Last November, voters passed an increase in sales and income taxes that Brown says will balance the state's operating budget and allow the debt wall to be gradually dismantled.
About half of the $127.2 billion in accumulated red ink came from the state's issuing general obligation bonds and then giving the money to local governments and school districts for public works projects, the auditor pointed out. The assets built with the bonds remain on local balance sheets while the bonded debt accrues to the state.
The remainder, however, is all on the state's ticket. "Expenses that exceeded revenues and increased long-term obligations resulted in an 81.4 percent decrease in the total net assets for governmental and business-type activities from the 20-10-11 fiscal year," said the report.
The report listed the state's long-term obligations at $167.9 billion, nearly half of which ($79.9 billion) were in general obligation bonds, with another $30.8 billion in revenue bonds, many of which were issued to build state prisons, whose "revenue" is lease payments from the state general fund.
The list of long-term obligations did not include the much-disputed unfunded liabilities for state employees' future pensions, nor the $60-plus billion in unfunded liabilities for retiree health care.
Were California's state government a business, it would be a candidate for insolvency with a negative net worth of $127.2 billion.
http://www.californiahealthline.org...-net-worth-at-negative-127-2b-audit-says.aspx
A new Bureau of State Audits report found that California's general fund spent $1.7 billion more than it received in revenues in fiscal year 2012, resulting in an accumulated deficit of about $23 billion and a negative state net worth of $127.2 billion. The report listed the state's long-term obligations at $167.9 billion, which did not include the more than $60 billion in unfunded liabilities for retiree health care.
The report, which covers the fiscal year ending June 30, 2012, says that the state's negative status -- all of its assets minus all of its liabilities -- increased that year, largely because it spent more than it received in revenue.
During the 2011-12 fiscal year, the state's general fund spent $1.7 billion more than it received in revenues and wound up with an accumulated deficit of just under $23 billion from several years of red ink. Gov. Jerry Brown has referred to that and other budget gaps, mostly money owed to schools, as a "wall of debt" totaling more than $30 billion.
Last November, voters passed an increase in sales and income taxes that Brown says will balance the state's operating budget and allow the debt wall to be gradually dismantled.
About half of the $127.2 billion in accumulated red ink came from the state's issuing general obligation bonds and then giving the money to local governments and school districts for public works projects, the auditor pointed out. The assets built with the bonds remain on local balance sheets while the bonded debt accrues to the state.
The remainder, however, is all on the state's ticket. "Expenses that exceeded revenues and increased long-term obligations resulted in an 81.4 percent decrease in the total net assets for governmental and business-type activities from the 20-10-11 fiscal year," said the report.
The report listed the state's long-term obligations at $167.9 billion, nearly half of which ($79.9 billion) were in general obligation bonds, with another $30.8 billion in revenue bonds, many of which were issued to build state prisons, whose "revenue" is lease payments from the state general fund.
The list of long-term obligations did not include the much-disputed unfunded liabilities for state employees' future pensions, nor the $60-plus billion in unfunded liabilities for retiree health care.
Were California's state government a business, it would be a candidate for insolvency with a negative net worth of $127.2 billion.
Randolph Kinney
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Cyprus and Greece: Living in "Hotel California"
Cyprus has -- or, until last week, had -- a lot of banks. It also has a lot of resort hotels. How appropriate that the best encapsulation of its crisis comes from the song, "Hotel California." What the island country's near collapse proved is that once you join the Euro, as the Eagles sang, "you can check out, but you can lever leave." When you have run up an enormous tab, as Greece, Cyprus and other highly indebted countries are beginning to grasp, the costs of leaving the Euro are simply too high ever to depart. In short, the Euro is a prison and the inmates are stuck with each other.
Cyprus has -- or, until last week, had -- a lot of banks. It also has a lot of resort hotels. How appropriate that the best encapsulation of its crisis comes from the song, "Hotel California." What the island country's near collapse proved is that once you join the Euro, as the Eagles sang, "you can check out, but you can lever leave." When you have run up an enormous tab, as Greece, Cyprus and other highly indebted countries are beginning to grasp, the costs of leaving the Euro are simply too high ever to depart. In short, the Euro is a prison and the inmates are stuck with each other.
Randolph Kinney
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PG&E Cancels California Solar Power Contracts With BrightSource
http://www.bloomberg.com/news/2013-...-solar-power-contracts-with-brightsource.html
http://www.bloomberg.com/news/2013-...-solar-power-contracts-with-brightsource.html
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