Daily Digest

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Daily Digest 7/3 - The Changing Landscape of Central Banking, Who Owns Your Face?

Friday, July 3, 2015, 10:49 AM

Economy

Hopeful Start to Greek Debt Negotiations Quickly Soured (jdargis)

As Mr. Tsipras paced and listened on the 25th floor of the hotel, his top aides argued that neither Germany nor the International Monetary Fund wanted an agreement and that they were instead pushing Greece into default and out of the euro.

The night before, at a meeting of eurozone leaders at the European Union’s headquarters, Mr. Tsipras had asked Chancellor Angela Merkel of Germany about including debt relief with a deal, only to be rebuffed again.

Greece In Crisis (jdargis)

Pensioners waiting outside a closed National Bank branch, hoping to make withdrawals, argue with a bank employee, left, in Iraklio on the island of Crete, Greece, on June 29, 2015.

Robert Kiyosaki: Biggest Stock Market Crash in History Coming in 2016 (Herman J.)

Take my word for it, that this is quite possibly the best interview we have ever done and you don’t want to miss it!

The Changing Landscape of Central Banking (Arthur Robey)

Explicit inflation targets also helped in another way. It had become widely accepted that the day-to-day conduct of monetary policy needed to be independent of the influence of governments. This was to avoid the temptation to seek a short-term stimulus to growth for political reasons, at the cost of a persistent rise in inflation. But in democracies, where central banks are creations of legislatures, there have to be limits to central banks' autonomy and devices for accountability. Correctly specified, an explicit inflation target with operational independence seemed to solve this problem. It would allow the central bank to give appropriate weight to output and employment, but would still anchor the price level in the long run and provide a metric to evaluate how well the central bank had used its independence.

Whole Foods Is Sorry It Systematically Lied About Some of Its Prices (jdargis)

It seems unlikely that Whole Foods will be able to get out of some sort of monetary penalty for its pricing mishaps in New York. But if nothing else, the company’s executives want you, potential Whole Foods shopper, to know that they are really, truly sorry. “Straight up, we made some mistakes, and we want to own that and tell you what we’re doing about it” Whole Foods co-CEO Walter Robb says in a video released Wednesday. That said, he and co-CEO John Mackey also want you to know that—really, truly—it was all a big misunderstanding.

Who Owns Your Face? (jdargis)

Facebook has also been thinking about faces. Last summer, the company’s artificial intelligence team announced that its facial-recognition software passed key tests with near human-level accuracy. Last week, it presented a further development: Yann LeCun, the AI team’s director, boasted that a different algorithm could identify people 83 percent of the time even if their faces were not in the picture. The program instead works from a person’s hairdo, posture, and body type.

More Internet Backbone Cables Cut in California (Adam)

A Level 3 spokesperson provided us with the following statement: "On June 30, 2015, the Level 3 network experienced a service disruption due to a fiber cut in the Northern California region. Our network technicians worked to resolve the issue, and all services were restored on July 1, 2015. Level 3 is working with law enforcement as they investigate the fiber cut."

BP to pay $18.7 billion in Deepwater Horizon legal settlement (jdargis)

The settlement in the wake of a two-year trial is expected to be paid out over nearly two decades and brings to about $40 billion (£25.6 billion) the costs BP has incurred due to the underwater spill that was shown live on television. The oil conglomerate has paid more than $4 billion in criminal fines and spent about $14 billion in a three-month effort to contain the spill.

Carl-Henic Svanberg, the BP chairman, said the deal gives the company some much-needed economic closure. "It resolves the company's largest remaining legal exposures, provides clarity on costs and creates certainty of payment for all parties involved."

Gold & Silver

Click to read the PM Daily Market Commentary: 7/2/15

Provided daily by the Peak Prosperity Gold & Silver Group

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

8 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
Nothing to see here, move along

Headlines:

  1. China Money Rate Posts Biggest Weekly Drop Since May on Easing
  2. China's c.bank gives 250 bln yuan in loans to banks
  3. Chinese shares fall 5.8%, leading Asia lower
  4. Panic sets in as Shanghai Composite drops 30pc, $3.7 trillion wiped of China share market despite crackdown
  5. Chinese Stock Markets Are in the Middle of an ‘Unprecedented’ Slide
  6. China hunts for 'manipulators' as stocks tumble
  7. Italy needs stronger growth to face market turbulence - central bank
  8. Greek debt crisis: Poll shows referendum vote is neck-and-neck
  9. Japan still set for 2017 tax hike despite struggling economy
  10. The Market Doesn't Believe Kuroda (Japan)
  11. South Korea Announces $20B Fiscal Stimulus to Spur Economy
  12. Illinois’ budget battle continues; social programs, state workers may suffer
  13. S&P downgrades Chicago Board of Education's GO debt rating to 'BBB'
  14. IMF: Greek Debt Is Unsustainable (will require a "haircut")
  15. Officials: Market conditions might prevent issuing bonds (Kansas pension bonds)
  16. Venezuela "Default is a Real Possibility" Says Fitch
  17. Euro zone shares set for biggest weekly fall this year with Greece in focus
  18. Snyder appoints team to review Wayne County's finances
  19. Atlantic City’s downfall provides lessons for the nation
  20. Greece crisis: 50,000 tourists cancel holidays each DAY as food RUNS OUT and cash is GONE
  21. Greek banks down to €500m in cash reserves as economy crashes
  22. Thousands of jobs face axe as cash shortage threatens Greek traders
  23. Greek Crisis Ripples Across European Companies as Markets Swing
  24. Check your municipal bond fund for Puerto Rico bond risks
  25. Chicago, you’re about to pay more for Netflix
  26. Renzi threatened by political contagion from Greece (Italy)

Time2help's picture
Time2help
Status: Diamond Member (Online)
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Posts: 2770
Dear banksters...do us all a favor

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
Greece debt crisis: The cost to pensioners

"It is a scene that speaks of suffering and exhaustion, and one that may well become the lasting image of the Greek debt crisis.

An elderly man, sitting on the ground outside a bank, was photographed crying on Friday morning.

The image, taken in Thessaloniki by AFP's Sakis Mitrolidis, was widely shared on social media as soon as it was published.

The man, whose name was not published, was helped away soon after it was taken."

"But this could be just the tip of the iceberg, as Britain's ageing population and the Government guarantees on state pensions is putting the UK on track to spend more on welfare by 2019."

"In China, you can now literally bet the house on the nation’s tumultuous stock market.

Under new rules announced Wednesday by the country’s securities regulator, real estate has become an acceptable form of collateral for Chinese margin traders, who borrow money from securities firms to amplify their wagers on equities. That means if share prices fall enough, individual investors who pledge their homes could be at risk of losing them to a broker."

"This comes as investors have finally questioned the rationale for buying shares after a 12-month surge in prices.

Valuations in some quarters of the Chinese market — notably the tech sector — had reached eye-watering levels, with a number of companies trading at price to earnings ratios in triple or even quadruple digits."

"Dang is among 7.5 million college graduates entering China’s job market this summer, the most ever and almost seven times the number in 2001. Their dreams are colliding with an economy growing at the slowest pace in a generation, adding pressure on policy makers to spur the employment-intensive services sector."

==================================================================

Don't let all of those news headlines get you down. Just give a whistle as you're reading through them:

 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
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Posts: 4066
Greek banks preparing possible "bail-in" of depositors - FT

"Greek banks are preparing contingency plans for a possible "haircut" on deposits amid fears of financial collapse, the Financial Times reported on Friday, ahead of a referendum that may decide the country's future in the euro zone.

Greek leaders have repeatedly dismissed the possibility they will have to "bail-in" depositors to prevent the collapse of the banking system.

But citing bankers and businesspeople with knowledge of the measures, the Financial Times reported: "The plans, which call for a 'haircut' of at least 30 percent on deposits above 8,000 euros, sketch out an increasingly likely scenario for at least one bank"."

sand_puppy's picture
sand_puppy
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Joined: Apr 13 2011
Posts: 1763
Solar Airplane flies Japan to Hawaii

This is kind-of fun.  

A one person, solar powered airplane flew from Japan to Hawaii in 5 days at an average speed of 42 miles per hour setting a new record for longest flight.  Solar Impulse.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
From alpha to omega. Ben comes out of the Closet.

The present state of the battle of ideas.

http://fromalpha2omega.podomatic.com/entry/2015-05-06T15_00_55-07_00

What a lovely time to be alive. 

 

KugsCheese's picture
KugsCheese
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Posts: 1429
China Government to Buy Stocks Outright

China Government to Buy Stocks Outright http://www.bloomberg.com/news/articles/2015-07-04/china-stock-brokers-set-up-19-billion-fund-to-stem-market-rout

It worked so well for Wall Street in 1929:

"On October 24, 1929, Black Thursday, he attempted to avert the Wall Street Crash of 1929. Alarmed by rapidly falling stock prices, several leading Wall Street bankers met to find a solution to the panic and chaos on the trading floor of the New York Stock Exchange.[4] The meeting included Thomas W. Lamont, acting head of Morgan Bank; Albert Wiggin, head of the Chase National Bank; and Charles E. Mitchell, president of the National City Bank of New York. They chose Whitney, then vice president of the Exchange, to act on their behalf.

With the bankers' financial resources behind him, Whitney went onto the floor of the Exchange and ostentatiously placed a bid to purchase a large block of shares in U.S. Steel at a price well above the current market. As traders watched, Whitney then placed similar bids on other "blue chip" stocks. This tactic was similar to a tactic that had ended the Panic of 1907, and succeeded in halting the slide that day. The Dow Jones Industrial Average recovered with a slight increase, closing with it down only 6.38 points for that day. In this case, however, the respite was only temporary; stocks subsequently collapsed catastrophically on Black Tuesday, October 29."  See https://en.wikipedia.org/wiki/Richard_Whitney_%28financier%29

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1429
KugsCheese wrote:China
KugsCheese wrote:

China Government to Buy Stocks Outright http://www.bloomberg.com/news/articles/2015-07-04/china-stock-brokers-set-up-19-billion-fund-to-stem-market-rout

It worked so well for Wall Street in 1929:

"On October 24, 1929, Black Thursday, he attempted to avert the Wall Street Crash of 1929. Alarmed by rapidly falling stock prices, several leading Wall Street bankers met to find a solution to the panic and chaos on the trading floor of the New York Stock Exchange.[4] The meeting included Thomas W. Lamont, acting head of Morgan Bank; Albert Wiggin, head of the Chase National Bank; and Charles E. Mitchell, president of the National City Bank of New York. They chose Whitney, then vice president of the Exchange, to act on their behalf.

With the bankers' financial resources behind him, Whitney went onto the floor of the Exchange and ostentatiously placed a bid to purchase a large block of shares in U.S. Steel at a price well above the current market. As traders watched, Whitney then placed similar bids on other "blue chip" stocks. This tactic was similar to a tactic that had ended the Panic of 1907, and succeeded in halting the slide that day. The Dow Jones Industrial Average recovered with a slight increase, closing with it down only 6.38 points for that day. In this case, however, the respite was only temporary; stocks subsequently collapsed catastrophically on Black Tuesday, October 29."  See https://en.wikipedia.org/wiki/Richard_Whitney_%28financier%29

 

From WSJ today: "Meanwhile, it could also pose a serious threat to the country’s banking system as many borrowers have taken out loans using stocks as collateral."

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