Some of their investment decisions make sense. Others are completely idiotic, as we saw in the 2008 financial meltdown.
But the larger point is that banks don’t use their own money to make these investments. They use other people’s money. Your money.
‘The eurozone isn’t working’ – Alan Greenspan (lambertad)
Greenspan who governed the Fed between 1987 and 2006 has consistently been critical of the eurozone. He always said the eurozone was doomed to fail because the effect of the divergent cultures in the bloc has been grossly underestimated.
He once again defended the gold standard monetary system that was widely followed by economies around the world until the 1930s.
Considerations On Cost Disease (Sam D.)
I don’t know if there’s an equivalent of “test scores” measuring how well colleges perform, so just use your best judgment. Do you think that modern colleges provide $18,000/year greater value than colleges did in your parents’ day? Would you rather graduate from a modern college, or graduate from a college more like the one your parents went to, plus get a check for $72,000?
(or, more realistically, have $72,000 less in student loans to pay off)
Once upon a time nobody on the entire planet could even come close to matching our infrastructure, but now our crumbling infrastructure has become a joke to much of the rest of the industrialized world. Sadly, this is just another symptom of our long-term economic collapse. We simply are not able to put as much of our money toward infrastructure as previous generations of Americans did, and as a result we have a giant mess on our hands. The following are 11 deeply alarming facts about America’s crumbling infrastructure…
Special Guest Mark Blyth explains his beliefs of neoliberalism in America.
Merkel Might Lose After All (Adam)
Last Monday, Merkel was sitting in the headquarters of the Christian Social Union (CSU), the Bavarian sister party to her CDU, looking as though she were a guest at her own funeral. Next to her was CSU head Horst Seehofer who, after months of castigating the chancellor for her refugee policy and threatening to withhold his support for her re-election campaign, had finally decided to back Merkel.
That is how “independent” central banks operate, but it evidently not the US central bank that is gambling in the stock market. After extensive quantitative easing, the Fed has a $4.5 trillion balance sheet; but this sum is accounted for as being invested conservatively in Treasuries and agency debt (although QE may have allowed Wall Street banks to invest the proceeds in the stock market by devious means).
The Journal provided lots of details that I won’t get into here. But the paper also presumed that all these central bank stock purchases were being done on the Tokyo market and that only the shares of Japanese companies were being rigged.
That’s not necessarily the case. The Bank of Japan — and other central bankers around the world — could easily be purchasing shares of American companies to help out the US stock market.
These dates typically indicate one of two things: a message from the manufacturer to the grocery store, telling the store when the product will look best on shelves, or a subjective measure — often little more than a guess — of when consumers will most “enjoy” the product. Methods for setting those dates have been left to manufacturers, rather like the phrasing of the labels themselves. But when consumers see a date labeled “use by” (or, even worse, not labeled at all) they often tend to assume that it’s a food-safety claim, regulated by some objective standard.
Alberta’s Growing $30-Billion Liability: Inactive Wells (westcoastjan)
“If a bankrupt company abandons a well site, the landowner may find themselves continuing to ‘host’ that well site, along with any environmental problems, for years, possibly even decades before it is reclaimed,” explained the report. “Sites requiring reclamation can suffer impacts to market value or landowner’s ability to sell the property for the duration of time it takes for that site to be reclaimed.”
Gold & Silver
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