But even the Fed has limitations. According to its own weekly financial statement, the Fed’s solvency is at precariously low levels (with a capital base of just 0.8% of assets).
And on a mark-to-market basis, the Fed is already insolvent. So it’s foolish to think they can continue to print money forever and bail out the government without consequence.
“Europe and the International Monetary Fund have in previous years mainly saved the banks and other private creditors,” concluded the report, published yesterday in German newspaper Handelsblatt. ESMT director Jorg Rocholl told the financial newspaper that “the bailout packages mainly saved the European banks.”
Under TTIP, a megabank fined this way might in turn sue the nation’s taxpayers to restore the megabank’s ensuing loss of profits. If the cheated investors win, taxpayers might thus end up bearing the cheated investors' losses. Under TTIP, the fined company would be arguing that the law under which it had been fined is in violation of TTIP and thus constitutes a violation of that treaty, so that the violating government is obliged to be paying the fine — the law against fraud would itself be violating the fined company’s rights. If the three-arbitrator TTIP panel rules in the megabank’s favor, the government would need to pay the fine it had assessed against the bank, and no appeals court exists for any of these arbitration-panels’ rulings — these rulings are final. Obama and other proponents of that system, which is called ISDS for Investor State Dispute Settlement, say that it’s a more efficient way of handling such disputes. In international commercial affairs, it not only eliminates appeals courts, it gradually eliminates democracy, by fining the government into ultimate submission to these three-person panels of international-corporate-accountable arbitrators.
U.S. Trouble With American Dividends (Tiffany D.)
Now, I don’t believe that the Fed will make the mistake of raising rates three times this year — at best, we will see one rate hike. But, when an investment bank like Goldman is blind to this reality, it tells me the dividend trade — i.e., dumping non-yielding assets for yielding ones — is at its end, and it’s time for investors to look abroad for better yield opportunities.
Russia Offers Free Land to Foreign Pioneers (Arthur Robey)
The Russian lower house Committee for Real Estate and Construction recommended that the State Duma approve the bill in the second reading in a session next week. The parliament already approved the draft in the first reading on December 18, 2015.
What makes Musk's deadline bluffs unusual is that he makes them public and lets investors hold him to account. Take what happened when he dropped his biggest bombshell last week, unveiling what is arguably the most ambitious production timeline in the history of cars. Musk said he plans to go from making about 50,000 electric cars a year to 500,000—by 2018.
For Morgan Stanley, the dip in earnings was more substantial and yet it too beat expectations, at $0.55 per share versus $0.46 expected by analysts. Wells Fargo, which has the same size exposure to energy as BofA’s, reported a net income of $5.46 billion, down from $5.8 billion for Q1 2015. The average rate of exposure to oil and gas loans of the U.S. banks is 5 percent, the report noted.
Millions of fish have washed up dead along a 125-kilometre stretch of the Vietnamese coast in one of the communist country’s worst environmental disasters.
Soldiers have been deployed to bury tonnes of fish, clams and the occasional whale that began dying in early April along the north-central coast, including some popular tourist beaches.
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