STOCK MARKET WATCH -- Wednesday, 4 February 2015

[Tansy_Gold]

[font size=3]STOCK MARKET WATCH, Wednesday, 4 February 2015[font color=black][/font]

SMW for 3 February 2015

AT THE CLOSING BELL ON 3 February 2015
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Dow Jones 17,666.40 +305.36 (1.76%)
S&P 500 2,050.03 +29.18 (1.44%)
Nasdaq 4,727.74 +51.05 (1.09%)


[font color=green]10 Year 1.79% +0.05 (2.87%)
30 Year 2.38% +0.06 (2.59%) [font color=black]


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[font size=2]Market Conditions During Trading Hours[/font]
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(click on link for latest updates)
Market Updates
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[font size=2]Euro, Yen, Loonie, Silver and Gold[center]

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[font color=black][font size=2]Handy Links - Market Data and News:[/font][/font]
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Economic Calendar
Marketwatch Data
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Yahoo Finance
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[font color=black][font size=2]Handy Links - Economic Blogs:[/font][/font]
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The Big Picture
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Brad DeLong
Bonddad
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goldmansachs666
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[font color=black][font size=2]Handy Links - Essential Reading:[/font][/font]
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Matt Taibi: Secret and Lies of the Bailout


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[font color=black][font size=2]Handy Links - Government Issues:[/font][/font]
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LegitGov
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Earmark Database
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[font color=black][font size=2]Handy Links - Videos:[/font][/font]
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Charlie Rose talks with Roubini
Charlie Rose talks with Krugman
William Black: This Economic Disaster
Bill Moyers with Kevin Drum and David Corn
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[font color=red]Partial List of Financial Sector Officials Convicted since 1/20/09 [/font][font color=red]
2/2/12 David Higgs and Salmaan Siddiqui, Credit Suisse, plead guilty to conspiracy involving valuation of MBS
3/6/12 Allen Stanford, former Caribbean billionaire and general schmuck, convicted on 13 of 14 counts in $2.2B Ponzi scheme, faces 20+ years in prison
6/4/12 Matthew Kluger, lawyer, sentenced to 12 years in prison, along with co-conspirator stock trader Garrett Bauer (9 years) and co-conspirator Kenneth Robinson (not yet sentenced) for 17 year insider trading scheme.
6/14/12 Allen Stanford sentenced to 110 years without parole.
6/15/12 Rajat Gupta, former Goldman Sachs director, found guilty of insider trading. Could face a decade in prison when sentenced later this year.
6/22/12 Timothy S. Durham, 49, former CEO of Fair Financial Company, convicted of one count conspiracy to commit wire and securities fraud, 10 counts of wire fraud, and one count of securities fraud.
6/22/12 James F. Cochran, 56, former chairman of the board of Fair, convicted of one count of conspiracy to commit wire and securities fraud, one count of securities fraud, and six counts of wire fraud.
6/22/12 Rick D. Snow, 48, former CFO of Fair, convicted of one count of conspiracy to commit wire and securities fraud, one count of securities fraud, and three counts of wire fraud.
7/13/12 Russell Wassendorf Sr., CEO of collapsed brokerage firm Peregrine Financial Group Inc. arrested and charged with lying to regulators after admitting to authorities he embezzled "millions of dollars" and forged bank statements for "nearly twenty years."
8/22/12 Doug Whitman, Whitman Capital LLC hedge fund founder, convicted of insider trading following a trial in which he spent more than two days on the stand telling jurors he was innocent
10/26/12 UPDATE: Former Goldman Sachs director Rajat Gupta sentenced to two years in federal prison. He will, of course, appeal. . .
11/20/12 Hedge fund manager Matthew Martoma charged with insider trading at SAC Capital Advisors, and prosecutors are looking at Martoma's boss, Steven Cohen, for possible involvement.
02/14/13 Gilbert Lopez, former chief accounting officer of Stanford Financial Group, and former controller Mark Kuhrt sentenced to 20 yrs in prison for their roles in Allen Sanford's $7.2 billion Ponzi scheme.
03/29/13 Michael Sternberg, portfolio mgr at SAC Capital, arrested in NYC, charged with conspiracy and securities fraud. Pled not guilty and freed on $3m bail.
04/04/13 Matthew Marshall Taylor,fmr Goldman Sachs trader arrested, charged by CFTC w/defrauding his employer on $8BN futures bet "by intentionally concealing the true huge size, as well as the risk and potential profits or losses associated."
04/04/13 Matthew Taylor admits guilt, makes plea bargain. Sentencing set for 26 June; faces up to 20 years in prison but will likely only see 3-4 years. Says, "I am truly sorry."
04/11/13 Ex-KPMG LLP partner Scott London charged by federal prosecutors w/passing inside tips to a friend in exchange for cash, jewelry, and concert tickets; expected to plead guilty in May.
08/01/13 Fabrice Tourré convicted on six counts of security fraud, including "aiding and abetting" his former employer, Goldman Sachs
08/14/13 Javier Martin-Artajo and Julien Grout charged with wire fraud, falsifying records, and conspiracy in connection with JP Morgan's "London Whale" trade.
08/19/13 Phillip A. Falcone, manager of hedge fund Harbinger Capital Partners, agrees to admit to "wrongdoing" in market manipulation. Will banned from securities industry for 5 years and pay $18MM in disgorgement and fines.
09/16/13 Javier Martin-Artajo and Julien Grout officially indicted on charges associated with "London Whale" trade.
02/06/14 Matthew Martoma convicted of insider trading while at hedge fund SAC (Stephen A. Cohen) Capital Advisors. Expected sentence 7-10 years.
03/24/14 Annette Bongiorno, Bernard Madoff's secretary; Daniel Bonventre, director of operations for investments; JoAnn Crupi, an account manager; and Jerome O'Hara and George Perez, both computer programmers convicted of conspiracy to defraud clients, securities fraud, and falsifying the books and records.
05/19/14 Credit Suisse, which has an investment bank branch in NYC, agrees to plead guilty and pay appx. $2.6 billion penalties for helping wealthy Americans hide wealth and avoid taxes.
09/08/14 Matthew Martoma, convicted SAC trader, sentenced to 9 years in prison plus forfeiture of $9.3 million, including home and bank accounts







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[font size=3][font color=red]This thread contains opinions and observations. Individuals may post their experiences, inferences and opinions on this thread. However, it should not be construed as advice. It is unethical (and probably illegal) for financial recommendations to be given here.[/font][/font][/font color=red][font color=black]

[Demeter]

1. The Extortion Plot in Connecticut: Murder For Bitcoin

https://www.cryptocoinsnews.com/extortion-plot-connecticut-murder-bitcoin/

A group of over one dozen Connecticut residents are living in fear these days, as they have had the lives of their families threatened by an extortion plot. It is all over the desire to obtain Bitcoin from Fairfield County residents. The anonymous letters have been received within the last week, and they are threatening to kill the recipient and/or family members unless a Bitcoin ransom is paid by February 13th. Fairfield County law enforcement and the FBI are investigating 14 potential threats, sent to residents’ homes in letters postmarked from Austin, Texas and Jacksonville, Florida.
Extortionist’s goal: $2,000 in Bitcoin per family

Here are the instructions listed to the recipients, assuming that they are not Bitcoin owners and may need detailed instructions on how to provide the digital ransom:

“[Recipient] you do not know who we are, but we have been tracking you and your loved ones for a while now. We know your schedules. We know where you all live and spend your time. We also know how to kill any one of you without being caught. Now [recipient], don’t panic. This isn’t personal. You did nothing to deserve this. You were just one of a handful of families unfortunate enough to draw our attention.

However, nobody has to die. Allow us to explain. You have until 12:00 PM on February 13, 2015 to pay us $2,000. If you do not comply with that simple demand, the following will happen: we will kill you, [recipient], or someone else to whom you are close. Or you can simply pay us the $2,000. To make the payment do the following.

1. Open an account at any online Bitcoin exchange, such as Bitstamp.net or Coinbase.com
2. Deposit $2,000 into that account. Do not wait until the last minute to do this. It will likely take you about a week to open an account, get it verified, and process the transaction.
3. Use the entire $2,000, minus whatever small fee the exchange charges, to purchase Bitcoins on the exchange. If you are unsure about the process of buying Bitcoins, Google it.
4. Withdrawal (sic) all Bitcoin you purchased to the following Bitcoin address: 19vcdWcV4J8bhH7j3igHZ5q4WGT2UX5V2S
5. Be sure to type all 34 characters of that Bitcoin address in EXACTLY. It is case sensitive. The first character is a number “one”, NOT a lowercase “L”.
6. You are finished. Breath (sic) easy, and live your life in peace knowing you will never have to deal with us again.”

Why these particular Connecticut recipients were targeted is unknown. Bitcoin extortion plots aren’t common but are not unheard of. The late Hal Finney was the subject of a $400k Bitcoin extortion plot before he passed away. This personal attack went so far as to necessitate SWAT teams raiding his home while he was taking a shower.

The letters also have the names of all those living in the Redding, Farmington, and Ridgefield homes. Also included in the 14 Connecticut residents letters is a “Note to Law Enforcement”. This note reveals to the holder that the authorities will never be able to find the Bitcoin extortionists...

[Demeter]

2. Paul Krugman: Ending Greece’s Nightmare

http://www.nytimes.com/2015/01/26/opinion/paul-krugman-ending-greeces-nightmare.html?ref=opinion

Alexis Tsipras, leader of the left-wing Syriza coalition, is ... the first European leader elected on an explicit promise to challenge the austerity policies that have prevailed since 2010. And there will, of course, be many people warning him to abandon that promise, to behave “responsibly.”

So how has that responsibility thing worked out so far?

To understand the political earthquake in Greece, it helps to look at Greece’s May 2010 “standby arrangement” with the International Monetary Fund, under which the so-called troika — the I.M.F., the European Central Bank and the European Commission — extended loans to the country in return for a combination of austerity and reform. It’s a remarkable document, in the worst way. The troika, while pretending to be hardheaded and realistic, was peddling an economic fantasy. And the Greek people have been paying the price for those elite delusions. You see, the economic projections that accompanied the standby arrangement assumed that Greece could impose harsh austerity with little effect on growth and employment. Greece was already in recession when the deal was reached, but the projections assumed that this downturn would end soon — that there would be only a small contraction in 2011, and that by 2012 Greece would be recovering. Unemployment, the projections conceded, would rise substantially, from 9.4 percent in 2009 to almost 15 percent in 2012, but would then begin coming down fairly quickly.

What actually transpired was an economic and human nightmare. Far from ending in 2011, the Greek recession gathered momentum. Greece didn’t hit the bottom until 2014, and by that point it had experienced a full-fledged depression, with overall unemployment rising to 28 percent and youth unemployment rising to almost 60 percent. And the recovery now underway, such as it is, is barely visible, offering no prospect of returning to precrisis living standards for the foreseeable future. What went wrong? I fairly often encounter assertions to the effect that Greece didn’t carry through on its promises, that it failed to deliver the promised spending cuts. Nothing could be further from the truth. In reality, Greece imposed savage cuts in public services, wages of government workers and social benefits. Thanks to repeated further waves of austerity, public spending was cut much more than the original program envisaged, and it’s currently about 20 percent lower than it was in 2010.

Yet Greek debt troubles are if anything worse than before the program started. One reason is that the economic plunge has reduced revenues: The Greek government is collecting a substantially higher share of G.D.P. in taxes than it used to, but G.D.P. has fallen so quickly that the overall tax take is down. Furthermore, the plunge in G.D.P. has caused a key fiscal indicator, the ratio of debt to G.D.P., to keep rising even though debt growth has slowed and Greece received some modest debt relief in 2012.

Why were the original projections so wildly overoptimistic? As I said, because supposedly hardheaded officials were in reality engaged in fantasy economics. Both the European Commission and the European Central Bank decided to believe in the confidence fairy — that is, to claim that the direct job-destroying effects of spending cuts would be more than made up for by a surge in private-sector optimism. The I.M.F. was more cautious, but it nonetheless grossly underestimated the damage austerity would do. And here’s the thing: If the troika had been truly realistic, it would have acknowledged that it was demanding the impossible. Two years after the Greek program began, the I.M.F. looked for historical examples where Greek-type programs, attempts to pay down debt through austerity without major debt relief or inflation, had been successful. It didn’t find any.

So now that Mr. Tsipras has won, and won big, European officials would be well advised to skip the lectures calling on him to act responsibly and to go along with their program. The fact is they have no credibility; the program they imposed on Greece never made sense. It had no chance of working...

[Demeter]

5. European Central Bank resists latest Greek bailout plan

http://www.cnbc.com/id/102393987

The European Central Bank is resisting a key element of the Greek government's new rescue plan, potentially leaving Athens with no source of outside funding when its international bailout expires at the end of the month.

Yanis Varoufakis, Greek finance minister, had proposed to European officials that Athens raise €10bn by issuing short-term Treasury bills as "bridge financing" to tide the country over for the next three months while a new bailout is agreed with its eurozone partners.

But the ECB is unwilling to approve the debt sale. It will not raise a €15bn ceiling on t-bill issuance to $25bn as requested by Athens, according two officials involved in the deliberations. "The Greek plan relies fully on the ECB," said another eurozone official briefed on the talks. "The ECB will play hardball."


WELL, THAT DIDN'T TAKE LONG

MORE AT LINK

[Demeter]

9. Greece starts drive to sell new debt deal to doubting Europe

http://www.reuters.com/article/2015/02/01/greece-politics-idUSL6N0VB0CE20150201

Greece's leftist government began its drive to persuade a sceptical Europe to accept a new debt agreement on Sunday while it starts to roll back on austerity measures imposed under its existing bailout agreement.

After a turbulent first week in office, the new government has made clear it wants to end the existing arrangement with the European Union, the European Central Bank and International Monetary Fund "troika" when its aid deadline expires on Feb. 28.

Instead, Prime Minister Alexis Tsipras wants to agree a bridging deal with the troika to gain breathing space while a new deal is negotiated to reduce Greece's unmanageable public debt burden of more than 175 percent of its economic output, or 320 billion euros ($360 billion).

"For the last five years, Greece has been living for the next loan tranche. We have resembled drug addicts craving the next dose," Finance Minister Yanis Varoufakis said after meeting his French counterpart Michel Sapin in Paris.

"What this government is all about is ending the addiction," he said, noting that it was time to go "cold turkey".

DETAILS AT LINK

[Demeter]

17. Open letter to the German readers: That which you were never told about Greece/Alexis Tsipras

http://syriza.net.gr/index.php/en/pressroom/253-open-letter-to-the-german-readers-that-which-you-were-never-told-about-greece



Alexis Tsipras' "open letter" to German citizens published on Jan.13 in Handelsblatt, a leading German language business newspaper



Most of you, dear Handesblatt readers, will have formed a preconception of what this article is about before you actually read it. I am imploring you not to succumb to such preconceptions. Prejudice was never a good guide, especially during periods when an economic crisis reinforces stereotypes and breeds biggotry, nationalism, even violence.

In 2010, the Greek state ceased to be able to service its debt. Unfortunately, European officials decided to pretend that this problem could be overcome by means of the largest loan in history on condition of fiscal austerity that would, with mathematical precision, shrink the national income from which both new and old loans must be paid. An insolvency problem was thus dealt with as if it were a case of illiquidity.

In other words, Europe adopted the tactics of the least reputable bankers who refuse to acknowledge bad loans, preferring to grant new ones to the insolvent entity so as to pretend that the original loan is performing while extending the bankruptcy into the future. Nothing more than common sense was required to see that the application of the 'extend and pretend' tactic would lead my country to a tragic state. That instead of Greece's stabilization, Europe was creating the circumstances for a self-reinforcing crisis that undermines the foundations of Europe itself.

My party, and I personally, disagreed fiercely with the May 2010 loan agreement not because you, the citizens of Germany, did not give us enough money but because you gave us much, much more than you should have and our government accepted far, far more than it had a right to. Money that would, in any case, neither help the people of Greece (as it was being thrown into the black hole of an unsustainable debt) nor prevent the ballooning of Greek government debt, at great expense to the Greek and German taxpayer.

Indeed, even before a full year had gone by, from 2011 onwards, our predictions were confirmed. The combination of gigantic new loans and stringent government spending cuts that depressed incomes not only failed to rein the debt in but, also, punished the weakest of citizens turning people who had hitherto been living a measured, modest life into paupers and beggars, denying them above all else their dignity. The collapse of incomes pushed thousands of firms into bankruptcy boosting the oligopolistic power of surviving large firms. Thus, prices have been falling but more slowly than wages and salaries, pushing down overall demand for goods and services and crushing nominal incomes while debts continue their inexorable rise. In this setting, the deficit of hope accelerated uncontrollably and, before we knew it, the 'serpent's egg' hatched – the result being neo-Nazis patrolling our neighbourhoods, spreading their message of hatred.

Despite the evident failure of the 'extend and pretend' logic, it is still being implemented to this day. The second Greek 'bailout', enacted in the Spring of 2012, added another huge loan on the weakened shoulders of the Greek taxpayers, "haircut" our social security funds, and financed a ruthless new cleptocracy.

Respected commentators have been referring of recent to Greece's stabilization, even of signs of growth. Alas, 'Greek-covery' is but a mirage which we must put to rest as soon as possible. The recent modest rise of real GDP, to the tune of 0.7%, signals not the end of recession (as has been proclaimed) but, rather, its continuation. Think about it: The same official sources report, for the same quarter, an inflation rate of -1.80%, i.e. deflation. Which means that the 0.7% rise in real GDP was due to a negative growth rate of nominal GDP! In other words, all that happened is that prices declined faster than nominal national income. Not exactly a cause for proclaiming the end of six years of recession!

Allow me to submit to you that this sorry attempt to recruit a new version of 'Greek statistics', in order to declare the ongoing Greek crisis over, is an insult to all Europeans who, at long last, deserve the truth about Greece and about Europe. So, let me be frank: Greece's debt is currently unsustainable and will never be serviced, especially while Greece is being subjected to continuous fiscal waterboarding. The insistence in these dead-end policies, and in the denial of simple arithmetic, costs the German taxpayer dearly while, at once, condemning to a proud European nation to permanent indignity. What is even worse: In this manner, before long the Germans turn against the Greeks, the Greeks against the Germans and, unsurprisingly, the European Ideal suffers catastrophic losses.

Germany, and in particular the hard-working German workers, have nothing to fear from a SYRIZA victory. The opposite holds. Our task is not to confront our partners. It is not to secure larger loans or, equivalently, the right to higher deficits. Our target is, rather, the country's stabilization, balanced budgets and, of course, the end of the grand squeeze of the weaker Greek taxpayers in the context of a loan agreement that is simply unenforceable. We are committed to end 'extend and pretend' logic not against German citizens but with a view to the mutual advantages for all Europeans.

Dear readers, I understand that, behind your 'demand' that our government fulfills all of its 'contractual obligations' hides the fear that, if you let us Greeks some breathing space, we shall return to our bad, old ways. I acknowledge this anxiety. However, let me say that it was not SYRIZA that incubated the cleptocracy which today pretends to strive for 'reforms', as long as these 'reforms' do not affect their ill-gotten privileges. We are ready and willing to introduce major reforms for which we are now seeking a mandate to implement from the Greek electorate, naturally in collaboration with our European partners.

Our task is to bring about a European New Deal within which our people can breathe, create and live in dignity.

A great opportunity for Europe is about to be born in Greece on 25th January. An opportunity Europe can ill afford to miss.

[mother earth]

27. Wow…where is our Syriza? Cleptocracy indeed…TY, Ms. D., & K & R.

[Demeter]

3. The Evil Robot Business

Last edited Wed Feb 4, 2015, 07:43 AM - Edit history (1)

Remember that cartoonist Scott Adams has no children...and his marriage ended after 8 years.

[Demeter]

4. Justice Department investigating Moody’s Investors Service

https://secure.marketwatch.com/story/justice-department-investigating-moodys-investors-service-sources-2015-02-01?siteid=yhoof2

Justice Department officials reportedly have quietly met with former Moody’s executives. The U.S. Justice Department is investigating Moody’s Investors Service for issuing favorable grades on mortgage deals in the buildup to the financial crisis, according to people familiar with the situation. The probe comes as the Justice Department is nearing a settlement with Standard & Poor’s Ratings Services over similar actions.

Justice Department officials, in recent months, have quietly met with multiple former Moody’s executives to discuss ratings of complex securities before the crisis, the people said. The Justice Department attorneys scrutinizing Moody’s are still in the early stages of their investigation, the people said, and it isn’t yet clear whether the probe will result in a lawsuit.

A Moody’s spokesman declined to comment.

In the recent wave of meetings, Justice Department officials, citing internal company emails, have pressed former Moody’s executives on whether the firm compromised standards to win business, according to people familiar with the matter. The main focus, as with the S&P case, has been on residential-mortgage deals from around 2004 to 2007, the people said.

[Demeter]

6. Bank of America fails to overturn Countrywide fraud verdict

http://finance.yahoo.com/news/bank-america-fails-overturn-countrywide-192935339.html

A federal judge on Tuesday rejected Bank of America Corp's bid to throw out a jury verdict finding it liable for the sale of questionable loans to Fannie Mae and Freddie Mac before the financial crisis, which led to a $1.27 billion civil penalty.

U.S. District Judge Jed Rakoff in Manhattan said "the jury's conclusion that this was a massive and intentional fraud was amply supported by the evidence." He also rejected Bank of America's alternative request for a new trial.

The U.S. Department of Justice had accused the bank's Countrywide unit of having lied to Fannie Mae and Freddie Mac about the quality of loans it was selling to the government-controlled mortgage companies.

Its lawsuit centered on Countrywide's "High Speed Swim Lane" program, also called HSSL or Hustle, which the government said emphasized speed over quality, and rewarded staff based on volume. It was created before Bank of America bought Countrywide in July 2008.

Bank of America spokesman Lawrence Grayson declined to comment. The Charlotte, North Carolina-based bank has said it would appeal the Oct. 2013 verdict and subsequent penalty.

MORTGAGE-GATE WILL BE LITIGATED FOR 100 YEARS...

[Demeter]

7. US 4THQ Growth Rate Put at 2.6% as Economy Pulls Ahead

http://www.nytimes.com/2015/01/31/business/economy/us-gdp-fourth-quarter-economic-output.html

...new government data showed the American economy grew at a decent 2.6 percent rate in the final quarter of 2014. That pace represents a downshift from the blistering 5 percent growth rate recorded in the third quarter and was modestly below what economists had been expecting. Nonetheless, most economists viewed the report in a positive light and saw the robust consumer spending as pointing to an improving economy in 2015. The combination of plunging energy prices and a healthier job market in late 2014 helped consumer spending rise last quarter by 4.3 percent, the fastest rate of growth since early 2006. And in a separate report on Friday, the Thomson Reuters/University of Michigan survey of consumer sentiment in January rose to its highest level since January 2004.

...Not everything was rosy, though. While consumer spending accounts for nearly 70 percent of economic output in the United States, there were weaknesses elsewhere that could drag on growth in the months ahead and which are likely to foster continuing turmoil in markets for stocks, bonds and currencies. The country’s trade balance deteriorated, shaving a full percentage point off the overall growth rate, as export gains slowed sharply from earlier in the year, while imports surged.

Although any single quarter represents a snapshot of the economy, rather than a nuanced portrait, experts suggested the falloff in net exports reflected a stronger dollar, which makes imported goods more competitive domestically while increasing the price of American products abroad. It also reflected weakness in Europe and other overseas markets, which are becoming tougher for American companies...For all of 2014, the economy grew at a rate of 2.4 percent, roughly in line with the underlying trend of the last five years.

One notable negative in late 2014 was a 1.9 percent fall in spending on new equipment by companies, reversing increases of more than 11 percent in the previous two quarters. Many economists expect business spending to be lackluster in the coming months, hurt by deep cuts among drillers and other energy companies because of plunging oil prices.

Military spending, which tends to be volatile, plunged last quarter and was another major drag on the overall trend, subtracting about 0.4 percentage point from the growth rate.

“The composition was what we thought: strong private consumption, modest growth in investment and drags from trade and government spending," Mr. Gapen added. “But I think the government spending drag is a one-off and there is tangible evidence that the consumer is in a much better place than in previous years."

DAMNING WITH FAINT PRAISE--MORE STIFF UPPER LIP AT LINK

[Demeter]

8. Spain’s economic growth accelerates by 1.4% in 2014

http://www.euronews.com/2015/01/30/spain-s-economic-growth-accelerates-by-14-percent-in-2014/



There has been a big pick up in Spain’s economy helped along by consumer prices falling further. Preliminary figures show notable annual growth for the first time since the crash nearly seven years ago. At the same time inflation was down one point four percent in January from a year earlier, which the government hopes will boost spending. The first estimate from the National Statistics Institute was that the Spanish economy expanded 1.4 percent in 2014 from a year earlier, with the pace increasing in the final months. Economic output also rose 2.0 percent in the fourth quarter from a year earlier, beating economist expectations. GDP has risen for the last six quarters. Businesses have benefited from lower energy costs, the weaker euro, and reduced personal and company taxes. And the eurozone’s fourth-largest economy is no longer dependent on exports with business investment and consumer spending increasing.

After the bursting of its property bubble in 2008 Spain’s economy lost 15 percent of its value before starting to turn around in late 2013; now finally there is rising employment and analysts see indications the recovery is spreading through the wider economy.

Spain’s Economy Minister Luis de Guindos has said that the economy is likely to grow by more than 2.5 percent this year thanks to the effect of cheap oil on consumer spending and a weak euro on exports, a cornerstone to the recovery. De Guindos has also argued that falling prices was not conducive to a destructive downward spiral as it helped boost families’ purchasing power.

[Demeter]

10. Obama targets foreign profits with tax proposal, Republicans skeptical

http://www.reuters.com/article/2015/02/01/us-usa-budget-tax-idUSKBN0L51IX20150201

President Barack Obama's fiscal 2016 budget will seek new taxes on trillions of dollars in profits accumulated overseas by U.S. companies, and a new approach to taxing foreign profits in the future, but Republicans were skeptical of the plan on Sunday. Reviving a long-running debate about corporate tax avoidance, Obama will target a loophole that lets companies pay no tax on earnings held abroad, the White House said. But his proposal was certain to encounter stiff resistance from Republicans. In his budget plan to be unveiled on Monday, Obama will call for a one-time, 14 percent tax on an estimated $2.1 trillion in profits piled up abroad over the years by multinationals such as General Electric (GE.N), Microsoft (MSFT.O), Pfizer Inc (PFE.N) and Apple Inc (AAPL.O). He will also seek to impose a 19 percent tax on U.S. companies' future foreign earnings, the White House said. At present, those earnings are supposed to be taxed at a 35-percent rate, but many companies avoid that through the loophole that defers taxation on active income that is not brought into the United States, or repatriated.

The $238 billion raised from the one-time tax would fund repairs and improvements to roads, bridges, transit systems and freight networks that would replenish the Highway Trust Fund as part of a $478 billion package, the White House said...Obama's budget will set a spending target of $4 trillion for fiscal year 2016, including a $474 billion deficit, which would represent a manageable 2.5 percent of U.S. Gross Domestic Product, The New York Times reported on Sunday. The budget also includes $105 million for “trade adjustment assistance” to help workers who have been affected by free trade pacts, it said.

...The one-time tax "would mean that companies have to pay U.S. tax right now on the $2 trillion they already have overseas, rather than being able to delay paying any U.S. tax indefinitely," a White House official said.

"Unlike a voluntary repatriation holiday, which the president opposes and which would lose revenue, the president’s proposed transition tax is a one-time, mandatory tax on previously untaxed foreign earnings, regardless of whether the earnings are repatriated." Corporations have been pushing for years for a tax holiday that would let them repatriate such earnings at a discounted tax rate. This was tried in 2004 under former Republican President George W. Bush. Framed as an economic stimulus, the Bush measure did result in a substantial portion of deferred profits being repatriated, but studies showed it did little for the economy.

[Demeter]

11. RadioShack in Talks to Sell Half Its Stores to Sprint, Shutter the Rest

http://www.bloomberg.com/news/articles/2015-02-02/radioshack-is-said-to-discuss-liquidation-as-part-of-sprint-deal

RadioShack Corp. is preparing to shut down the almost-century-old retail chain in a bankruptcy deal that would sell about half its store leases to Sprint Corp. and close the rest, according to people with knowledge of the discussions.

The locations sold to Sprint would operate under the wireless carrier’s name, meaning RadioShack would cease to exist as a stand-alone retailer, said the people, who asked not to be identified because the talks aren’t public.

The negotiations could still break down without a deal being reached, or the terms could change. Sprint and RadioShack also have discussed co-branding the stores, two of the people said. It’s also possible that another bidder could emerge that would buy RadioShack and keep it operating, the people said. The Chinese backers who took the Brookstone chain out of bankruptcy, Sanpower Group, also have been in discussions about bidding for RadioShack assets, one person familiar with the talks said.

The discussions represent the endgame for a chain that traces its roots to 1921, when it began as a mail-order retailer for amateur ham-radio operators and maritime communications officers. It expanded into a wider range of electronics over the decades, and by the 1980s was seen as a destination for personal computers, gadgets and components that were hard to find elsewhere. In more recent years, though, competition from Wal-Mart Stores Inc. and an army of e-commerce sellers hurt customer traffic....MORE

[kickysnana]

20. End of an era. n/t

[Demeter]

12. Revolving Door' Between Fed and Banks Spins Faster

BLATHER AT LINK http://www.bloomberg.com/news/articles/2015-01-30/fed-s-revolving-door-spins-faster-as-banks-boost-hiring?hootPostID=128c50b0bbea9e7c9c0b2be9a388ae9a

[DemReadingDU]

26. Highest percentage has occurred during Obama

[Demeter]

13. Sheriff Instructs Drivers to Begin Running Over Americans Who Protest Police Violence if Necessary

http://filmingcops.com/accelerate-forward-sheriff-instructs-drivers-to-begin-running-over-americans-who-protest-police-violence-if-necessary/

FLORIDA, OF ALL PLACES

[Demeter]

14. Meet Loretta Lynch – Obama’s Attorney General Nominee Who Might be Even Worse than Eric Holder

http://libertyblitzkrieg.com/2015/01/29/meet-loretta-lynch-obamas-attorney-general-nominee-who-might-be-even-worse-than-eric-holder/

On matters of policy, Ms. Lynch called capital punishment “an effective penalty” and said she disagreed with Mr. Obama’s statements that marijuana was no more harmful than alcohol. She called the National Security Agency’s collection of American phone records “certainly constitutional, and effective.”

– From the New York Times article: Criticism of Holder Dominates Hearing on Loretta Lynch, Attorney General’s Possible Successor

Eric Holder made a career out of protecting and coddling financial oligarchs (his 1999 memo essentially invented “Too Big to Jail”). This was such a lucrative decision for Mr. Holder, that it allowed him to climb all the way to the top of his profession. The dividends that supporting this man ultimately paid to Wall Street criminals were priceless. Not only were they bailed out despite wrecking the U.S. economy, they have since funneled all of the wealth gains since 2008 to themselves, while remaining above the law. This truly remarkable heist is what both Barack Obama and Eric Holder will be remembered for by history. Congratulations guys. When Eric Holder announced his resignation, many of us breathed a sigh of relief thinking it can’t get much worse, but not so fast. The authoritarian streak and rampant cronyism of the Obama administration is a well oiled machine. You didn’t think you’d get off that easily did you? Enter Loretta Lynch. I’ve touched upon Mrs. Lynch’s record previously, in the post, Wall Street Journal Reports Obama’s Attorney General Nominee Has Been Involved in $904 Million in Asset Forfeitures. Here’s an excerpt:

As a prosecutor Ms. Lynch has also been aggressive in pursuing civil asset forfeiture, which has become a form of policing for profit. She recently announced that her office had collected more than $904 million in criminal and civil actions in fiscal 2013, according to the Brooklyn Daily Eagle. Liberals and conservatives have begun to question forfeiture as an abuse of due process that can punish the innocent.

Naturally, that was just the tip of the iceberg. What we have learned from her ongoing confirmation hearing is that she’s a lover of NSA spying and the death penalty, while disagreeing with the statement that “marijuana is no more harmful than alcohol.” I wonder if she has much personal experience to base this opinion on, or if it’s just more of the same we “know what’s best for you plebs, despite the fact that we have no idea what we are talking about.” Meet the new Attorney General, same as the old. From the New York Times:

Ms. Lynch had steeled herself for tough questioning from a new Republican-controlled Judiciary Committee, particularly on her views of President Obama’s immigration policy. But the questioning was mostly cordial, and, most important, the Republicans on the committee who hold the key to Ms. Lynch’s confirmation — she needs three of their votes to proceed to a vote by the full Senate — showed little opposition.

Of course it was cordial. Other than perhaps immigration, she basically espouses complete and total neo-con principals.

On the issue of immigration, Ms. Lynch said she found it “reasonable” that the Justice Department had concluded it was lawful for Mr. Obama to unilaterally ease the threat of deportation for millions of unauthorized immigrants. Mr. Holder similarly endorsed that view.

Democrats see some Republicans, such as Senators Lindsey Graham of South Carolina, Orrin G. Hatch of Utah and Jeff Flake of Arizona, as possible confirmation votes. Mr. Flake said he had made no decision on Ms. Lynch but had come away with a favorable impression and expected that she would be confirmed.

On matters of policy, Ms. Lynch called capital punishment “an effective penalty” and said she disagreed with Mr. Obama’s statements that marijuana was no more harmful than alcohol. She called the National Security Agency’s collection of American phone records “certainly constitutional, and effective.”

Senator Sheldon Whitehouse, a Rhode Island Democrat on the panel, said she had given “a flawless performance.” Senator Richard Blumenthal, Democrat of Connecticut, called her testimony “among the most accomplished and impressive that I’ve seen as a member of this committee.”

Oh, but there’s more. As if you needed proof that Ms. Lynch shares Eric Holder’s financial oligarch coddling tendencies, the International Business Times reports that:

WASHINGTON — In advance of her nomination hearing, Loretta Lynch did what every cabinet nominee is required to do: fill out a questionnaire listing all her media interviews so lawmakers can evaluate her candor. But the questionnaire U.S. attorney general nominee Lynch submitted to the Senate Judiciary Committee has a notable omission. Lynch failed to include an interview in which she defended the controversial settlement she orchestrated with the bank HSBC.

The bank was accused of knowingly allowing Mexican drug cartels to launder money and of allowing violations of economic sanctions against countries including Iran, Libya, Sudan and Cuba. Lynch, then the U.S. Attorney for the Eastern District of New York, allowed the bank to avoid prosecution in 2012 by paying a $1.9 billion fine and submitting to a monitor for five years to oversee compliance. Critics slammed the deal as an example of the Obama administration’s pattern of going easy on the financial industry. In the Dec. 11, 2012, interview she did with CBS News, Lynch endorsed the settlement and dismissed criticism of the deal as “shortsighted.”

Lynch’s boss at the time of the HSBC deal, Assistant Attorney General Lanny Breuer, who was then head of the Department of Justice’s criminal prosecution division, resigned after a scathing Frontline piece that highlighted Justice’s failure to try any of the banks tied to the recession and the risky trades that led to it. It was during a discussion of HSBC before the Senate Judiciary Committee that Attorney General Holder famously said some banks — although not HSBC specifically — were too big to prosecute.

Well there you have it. This woman, like Eric Holder, will be an unmitigated disaster for freedom in America. That’s what “liberal” looks like in today’s America.

[Demeter]

15. Another image of labor’s broken back: $48,887 in profit per employee!

...According to this CNN article from August, the median household income is $53,891. That means these 30 companies are pocketing 90% of what an household earns. That’s out the door, cash in the pocket 90% of what a household works all year to earn. Now, I’m not sure, but I think that household income is pretax and I doubt they get to hid that $53,891 in some account out of reach of the tax man. In fact, I’ll bet that household needs every bit of that money just to get through the year....

http://angrybearblog.com/2015/01/another-image-of-labors-broken-back-48887-in-profit-per-employee.html

[Demeter]

16. Economy grows, incomes shrink

http://america.aljazeera.com/opinions/2015/1/economy-grows-incomes-shrink.html



The first data on 2013 incomes show continuing bad news for Americans, my analysis of a new Internal Revenue Service report shows.

Average income fell 2.6 percent in 2013, even though the economy grew 3.2 percent in real terms over 2012.

Average inflation-adjusted income in 2013 was 8 percent lower than in 2007, the last peak economic year, and 6.9 percent less than in 2000, the year President George W. Bush set as the standard to evaluate the effect of his tax cuts and regulatory policies.

This is the latest sign of a disturbing trend. An ever-shrinking share of national income flows to individuals while corporate profits expand.
Capital over labor

In fact, profits hit a record high in 2013 both in absolute terms and as a share of the economy. By both measures, profits have continued rising.

By contrast, labor’s share of national income has been trending downward since 1980, except for a spike during the second term of President Bill Clinton. The decline accelerated after the Bush tax cuts took effect, retroactively, to the first day of 2001.


INTERACTIVE GRAPH AT LINK AND MUCH MORE DETAIL

[Demeter]

18. Can Fast Food Afford a $15 Minimum Wage Without Cutting Jobs?

http://www.nakedcapitalism.com/2015/02/can-fast-food-afford-15-minimum-wage-without-cutting-jobs.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+NakedCapitalism+%28naked+capitalism%29

Yves here. One of the oft-made assertions is that increasing wages in low-wage positions will lead to job losses. But in many industries, direct labor is a not all that large a proportion of total product cost. And with corporate profits at record highs, the immediate impact would normally be to trim profit levels, which have risen to be such a high proportion of GDP as to be deemed by Warren Buffet as well higher than sustainable levels.

Moreover, as this Real News Network segment points out, businesses that pay only minimum wage or barely above it have lots of turnover. That is costly in terms of managerial time. Having a minimum wage that was more like a living wage would reduce employee churn, offsetting some of the cost of the pay increase. Costco has demonstrated that this approach works. It pays more than other discount retailers, and not only does it have less turnover, but it enjoys another gain: less inventory shrinkage, which is often due to theft by employees...

VIDEO INTERVIEW FOLLOWS

[Demeter]

19. Time to “Look for the Union Label?” First US Doctors’ Strike in Decades

http://www.nakedcapitalism.com/2015/02/time-to-look-for-the-union-label-first-us-doctors-strike-in-decades.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+NakedCapitalism+%28naked+capitalism%29

Yves here. Take note of what drove the doctors to strike: not just cutting pension funding as the administration gets lavish increases, but also workplace conditions, specifically restrictions that get in the way of patient care.

By Roy Poses, MD, Clinical Associate Professor of Medicine at Brown University, and the President of FIRM – the Foundation for Integrity and Responsibility in Medicine. Cross posted from the Health Care Renewal website

A few news media outlets in California have reported on what has been up to now a very rare event – a strike by physicians. An initial summary was in an article in the San Diego Union – Tribune, whose title was

First U.S. Doctors’ Strike in Decades

A handful of doctors providing medical services to students at UC San Diego — and their colleagues at nine other University of California campuses — went on strike Tuesday.

It’s the first time in 25 years that fully licensed doctors are picketing a U.S. employer, according to the Union of American Physicians and Dentists, which represents the physicians at the UC schools.

The work stoppage began at 7:30 a.m. and is scheduled to last one day. It involves 150 health center doctors who manage the primary care and mental health needs of students.

A second article in the Union-Tribune suggested that the point of contention between the union and the University of California administration was not primarily wages,

Collective bargaining has not gone smoothly for UC student services doctors who voted to join the Union of American Physicians and Dentists in November 2013. The two sides have not been able to agree on a contract. Union members voted for the one-day strike after accusing the university system of refusing to provide key financial information that would aid their negotiations.

An article in the East Bay Express clarified that,

The central unfair labor practice complaint centers on the university’s refusal to disclose basic financial data to doctors as part of the negotiations, according to Dr. Jeff Nelson, a UC Berkeley physician and a member of the bargaining team.

‘We have asked UC for financial information as to where their funding sources are and what kind of finding they have, and they’re not giving that, even though as a public institution, they’re required to,’ Nelson told me this morning at a rally outside the Tang Center where UC Berkeley students receive health services. Citing the $3.1 billion fundraising campaign UC Berkeley completed last year, he added: ‘They have an awful lot of money.’

Without the financial statistics the union has requested, UAPD can’t fairly negotiate and settle a contract, said Sue Wilson, a UAPD spokesperson. ‘We have a right to certain information that we need in order to bargain a contract.’ For example, she said, the union has sought information about the recently approved 20 percent salary increases for chancellors, but hasn’t had any luck getting the details it requested. Wilson said the union has also filed an unfair labor practice charge regarding UC’s recent decision to require UAPD doctors to contribute more money to their pensions, despite the fact that university officials originally said they would make those changes through the contract negotiations. ‘It shows a lack of respect,’ she said.

Apparently, the striking doctors want more money not for salaries, but to improve services to patients, as discussed in the second Union-Tribune article,

Dr. Amol Doshi, one of the staff physicians who didn’t report to work Tuesday, said his decision to join the union and to strike came down to disagreements with management over how student health services is run.

He said only about 15 minutes is provided for each patient, regardless of whether that student has one or several medical issues that need to be addressed.

‘We feel like our professional autonomy is being compromised in how we can take care of our patients. We feel that the number of patients that we’re asked to see, many of whom have mental health concerns, require more time and more staffing,’ Doshi said.

The East Bay Express noted the UC administration’s response did not deal with the substance of these issues,

Reached for comment today, a UC Berkeley spokesperson referred me to the UC Office of the President. Shelly Meron, a spokesperson for that office, dismissed the union’s complaints in a phone interview this morning.'”They say this is about unfair labor practice charges. We believe this is simply a negotiation tool.’ Meron said the president’s office does not comment on the specifics of unfair labor practice charges and declined to answer questions about the union’s claims regarding financial disclosures and the pension policy.

Note that so far this story has been reported nationally only in one small item by Reuters.

Unions as One Method to Address the Plight of the Corporate Physician

So, to summarize, a small group of unionized physicians employed by the student health services of the University of California called a one day strike to protest infringements of their autonomy, particularly requirements that they see patients too quickly for what they believe to be the patients’ good, and failure to provide budgetary information relevant to the university’s financial capacity to provide better services. The physicians suspect the university has sufficient money to do so, especially given generous raises given to university managers.

The issues these physicians seem to be facing are familiar aspects of the plight of the American corporate physician. To recap the background, decades ago, most US physicians worked as solo entrepreneurs, or for small, physician owned groups. Those few who were employed worked for small non-profits, like the local teaching hospital, or local or US government. That has all changed. Now increasing numbers of physicians are employed by increasingly large non-profits, such as hospital systems, or for-profit corporations. A 2013 Medscape article reported that the then current rate of employment was over 50%.

As such these physicians often report ultimately to managers, administrators, bureaucrats, and executives (MABEs). Many of the people they report do may not be physicians or health care professionals. Instead, they are likely to be generic managers, trained in business and management schools, with no direct experience in health care, and unclear commitment to its value. (The 2013 Medscape article cited above included results of survey suggesting the top complaint of employed physicians was being “bossed around by less-educated admins.”) Worse, many generic managers have bought into the primacy of short-term revenue over all other considerations, including patients’ and the public’s health. Examples of mission hostile management in health care thus now abound.

In parallel, most top corporate leaders have received increasingly generous compensation, far more generous than non-management employees, including health care professionals get, and that compensation seems to rise regardless of the quality of health care their organizations provide, or even their organizations’ financial performance...

DETAILS FOLLOW

[Demeter]

21. Schools are open today!

The Kid was climbing the walls after two days off.

Just a frosting of snow last night, and the temps just below freezing, until the sun goes down tonight, when it will plunge...-20F windchill expected.

I am SO HAPPY I don't deliver papers Thursday a.m. any more!

[xchrom]

22. Europe's growth just surged to a 6-month high

http://www.businessinsider.com/eurozone-services-pmi-january-2015-2015-2

The PMI figures of Germany, Spain, and Italy all beat expectations, while French services dipped back into recession territory (as had been expected).

Europe has been through some false dawns before: In 2010, a minor recovery from the financial crisis was killed by the European Central Bank's early rate hikes. In 2013, when the eurozone came out of technical recession, the bloc saw very little growth. But these figures seem pretty positive.

Here's how it looks:



Read more: http://www.businessinsider.com/eurozone-services-pmi-january-2015-2015-2#ixzz3QmHRhdSO

[xchrom]

23. This Greek game-theory guru is the most interesting man in the world

http://www.businessinsider.com/yanis-varoufakis-most-interesting-2015-2

The Greek stock market exploded Tuesday with the Athens Stock Exchange General Index surging 11.3%.

This comes amid rapidly evolving talks over how Greece will climb out of its debt crisis.

At the center of these dealings is Greek finance minister, Yanis Varoufakis. He's the voice and face of the Greece's economic situation today.

His position on what to do about Greek's crushing debt seems to change daily, but that seems to be working to his advantage.



Read more: http://www.businessinsider.com/yanis-varoufakis-most-interesting-2015-2#ixzz3QmIagz8b

[mother earth]

28. Good name for him.

He really is.

[xchrom]

24. EUROPEAN RETAIL SALES ARE GROWING AT THE FASTEST PACE IN 8 YEARS

http://www.businessinsider.com/eurozone-retail-sales-december-2014-2015-2

The eurozone just recorded its strongest retail sales growth in almost eight years, up 2.8% in December.

Sales had grown by 0.6% in November from October, when shopping for Christmas typically gets underway. Analysts expected a 0.2% increase to January, which would have self sales up 2% year on year.

Turnover is still below record levels, but the trend is very obviously upwards.



Read more: http://www.businessinsider.com/eurozone-retail-sales-december-2014-2015-2#ixzz3QmJD1CfH

[xchrom]

25. The 10 most important things in the world right now

http://www.businessinsider.com/the-10-most-important-things-in-the-world-right-now-feb-4-2015-2

1. At least 12 people were killed after a Taiwanese plane crashed through a freeway barrier and into a river shortly after take-off.

2. Jordan executed two Iraqi militants in retribution for the killing of a Jordanian pilot by Islamic State militants.

3. Greece will meet with European Union leaders Wednesday as the new radical government tries to sell its plans for debt restructuring.

4. Argentine prosecutor Alberto Nisman, who was found dead last month, had drafted a request that President Cristina Fernandez be arrested for conspiring to derail his investigation into the 1994 bombing of a Jewish centre.

5. The United Nations said it was "extremely concerned" that the agency's relief supplies in Syria are being rebranded and distributed with the Islamic State group's logo.



Read more: http://www.businessinsider.com/the-10-most-important-things-in-the-world-right-now-feb-4-2015-2#ixzz3QmJmJRTh

[antigop]

29. Clinton Consults to Define Economic Pitch

http://www.wsj.com/articles/clinton-consults-experts-to-define-economic-pitch-1422837490

Lineup of Experts and Topics Discussed Offer Hints About a Focus on the Middle Class in a Possible Presidential Campaign

Hillary Clinton has been consulting with an array of economists and academics—including liberal Joseph Stiglitz, former Fed chairman Paul Volcker and new faces outside the traditional orbit of Democratic policy experts—as she prepares for a likely presidential campaign that would make sluggish wage growth and middle-class prosperity a central focus.

One of Mrs. Clinton’s broader goals is to develop ways to address economic anxiety without sounding like a combative populist or demonizing high-income groups, said a person familiar with her thinking. It isn’t clear whether that particular question has come up in the meetings she has been having with various policy experts.

She has been using the meetings to prepare herself for a possible campaign, ground herself in the issues and tease out fresh approaches to stubborn domestic and foreign policy problems, people familiar with the matter said.

As the former secretary of state keeps a low public profile ahead of announcing her near-certain candidacy, the meetings offer clues to which issues she believes merit attention and whose advice she values. Many, but not all, participants served in Bill Clinton ’s administration; others are distinguished primarily by expertise in subjects that are certain to be front-and-center in the 2016 presidential race.

The article does not mention labor leaders being consulted.

[Demeter]

30. What cannot be cured must be endured

As a poll worker, at least I get paid for enduring these elections.