Clipmarks | tabsey's 'economics' clips

Prepare to enter the land of the free, as long as people buy it

Sun, 22 Jun 2008 09:06:18 GMT

clipped by: tabsey
clipper's remarks: This would a culture change to work. Rip off merchants (entrepreneurs ) will be faced with the greatest problems - and probably the greatest returns will go to a few, as usual.

Clip Source: www.theage.com.au

IT'S the business paradox of the noughties: the more you give away, the more money you can make. For consumers, it delivers the ultimate reward: something for nothing.

The revolutionary trend has been branded "freeconomics", and last week the music industry became the latest to join in with the delayed launch of Qtrax, the first 100% free and legal music download service for users in the US.

It adds to a growing stock of products and services being given away. Newspapers, telephones, flights, drinks and divorces are on offer free of charge. Games, bicycles, books and cars, WiFi, financial help and travel guides are also priced to go at absolutely nothing. No matter what you are looking for, there are few limits to what is being "freed". Increasingly, money will become no object at all, changing the way we live, do business and play.

Tags: interesting, economics

Gas crisis serious for all Australians: PM

Wed, 18 Jun 2008 14:53:44 GMT

clipped by: tabsey
clipper's remarks: Wonder how much the Chinese would charge to sell our contracted gas back to us.

Clip Source: www.abc.net.au

The damage at Apache Energy's gas plant on Varanus Island is hurting WA.

Prime Minister Kevin Rudd has issued a strong warning about the potential economic impact of Western Australia's gas crisis, telling Parliament the Commonwealth is working with the WA Government to deal with the impact of the crisis.

The Treasurer has also warned of a flow through to the national economy if the crisis seriously affects WA's economy.

Mr Rudd says WA Premier Alan Carpenter has established a Gas Supply Coordination Group which will involve some Commonwealth and Government agencies working with key State Government agencies and industry bodies.

"This is a serious matter for Western Australia therefore it is a serious matter for all Australians," he said.

"We believe that is an appropriate level of coordination between the two governments."

The Varanus Island explosion on June 3 has slashed WA's gas supply by one-third.

Tags: economics

What's Mine Is Mine: Brain Scans Reveal What's Behind The Aversion To Loss Of Possessions

Thu, 12 Jun 2008 11:59:33 GMT

clipped by: tabsey

Clip Source: www.sciencedaily.com

ScienceDaily (Jun. 12, 2008) — Did you ever wonder why it is so difficult to part with your stuff? A new study reveals fascinating insights into the specific neuropsychological mechanisms that are linked with the potential loss of possessions. The research, published by Cell Press in the June 12 issue of the journal Neuron, has important implications for both neuroscience and economics and may even explain why you are reluctant to sell your iPod.

People tend to prefer the items they own when compared to similar items that they do not own. This phenomenon, known as the "endowment effect," violates rational choice theory which states that ownership should not influence preferences. "While the endowment effect occurs regularly and robustly in both laboratory and natural settings, the psychological and neural mechanisms underlying this effect remain unclear," says study author Dr. Brian Knutson from Stanford University.

Tags: brain

How Fraud Fueled the Mortgage Crisis

Mon, 05 May 2008 09:51:13 GMT

clipped by: tabsey
clipper's remarks: Brokers pushed borrowers to lie, lenders misled and ratings agencies looked the other way.
Free range banking can't be allowed while greed is the sole motivator.

Clip Source: www.truthout.org

The debate over what caused the mortgage mess and how best to fix it is now taking a sharp turn, as new problems surrounding liar's loans and payment-option mortgages reveal the pervasive fraud, lying and deceit that permeated the market at its height.

As loans made to borrowers with decent credit begin to fail at a surprisingly rapid rate, it's becoming clear that widespread fraud helped support the entire mortgage system - from borrowers who lied on their loans, to brokers who encouraged it, to lenders who misled some low income borrowers, to the many lenders, investors and ratings agencies that conveniently and deliberately looked the other way as profits rolled in.

Tags: economics, fraud, who, pays

Countrywide Said to Be Subject of Federal Criminal Inquiry mics,

Mon, 10 Mar 2008 10:58:29 GMT

clipped by: tabsey
clipper's remarks: Would be good if the victims received some help - not the shareholders. Other companies are also being investigated. Hope it doesn't make us forget the perpetrators who made this mess.

Clip Source: www.truthout.org

Washington - The federal authorities have opened a criminal inquiry into Countrywide Financial for suspected securities fraud as part of the continuing fallout over the mortgage crisis, government officials with knowledge of the case said on Saturday.

The Justice Department and the Federal Bureau of Investigation are looking at whether officials at Countrywide, the nation's largest mortgage lender, misrepresented its financial condition and the soundness of its loans in security filings, the officials said.

The investigation - first reported on Saturday in The Wall Street Journal - is at an early stage, said the officials, who spoke on the condition of anonymity because they were not authorized to discuss ongoing criminal matters. It is unclear whether anyone will ultimately be charged with a crime.

Richard Kolko, a spokesman for the F.B.I., declined on Saturday to confirm whether the agency had started an investigation of Countrywide related to its securities filings.

Tags: economics, politics

Sharp spike in US bankruptcies

Thu, 06 Mar 2008 09:59:47 GMT

clipped by: tabsey
clipper's remarks: On the edge or beyond means.

Clip Source: www.abc.net.au

The number of bankruptcies in the US rose nearly 30 per cent last month.

The rising number of people defaulting on mortgages is a major contributing factor.

An average of 3,960 bankruptcy petitions were filed across the country each day in the month of February, up 18 per cent on January and 28 per cent on February 2007.

Analysts expect the number of bankruptcies to top 1 million in the year and perhaps go as high as 1.2 million.

The figures compiled by a bankruptcy data company show that bankruptcies are not just limited to the states hit hardest by the housing crisis but are spread from the east to the west coast.

The sharp rise in bankruptcies has occurred despite reform of the laws making it harder to file and expensive.

Tags: economics

Food and the Spectre of Malthus

Fri, 29 Feb 2008 06:34:02 GMT

clipped by: tabsey
clipper's remarks: A well written article presenting reasons for food shortages and the impact we have and can expect. Where are those recipes for offal?

Clip Source: www.truthout.org

February has been the month for revisiting old and unpleasant economic concepts. Last week, financial markets experienced that 1970s feeling, as a combination of rising inflation and unemployment in the US triggered unwelcome memories of the decade of stagflation that ended the postwar golden age and the Keynesian consensus. Then came this week's report that the United Nations' world food programme might have to ration food aid. Set against a backdrop of rising food prices worldwide - global food prices have now risen by more than 75 per cent since their lows of 2000, jumping more than 20 per cent in 2007 alone - the news revived fears from a much earlier era, conjuring up the Reverend Thomas Malthus.

Tags: economics, food

The (economic) Revolution Comes

Wed, 20 Feb 2008 09:28:29 GMT

clipped by: tabsey
clipper's remarks: I understood this, so can recommend it to any who are not great economists. Some may disagree, but it fits with most that I have read recently. 5 mins well spent finding why we are in financial that may even reach the kids money boxes

Clip Source: www.theage.com.au

Martin Jacques is visiting research fellow at the Asia research centre, London School of Economics.

Clip Source: www.theage.com.au

A global power shift is in the making, as the growing economic crisis takes hold, writes Martin Jacques.

THE world is holding its breath, still trying to grasp the potential enormity of what is unfolding. Economic downturns and stock-market crashes are hardly unfamiliar, of course, even if a decade or so seems a long time ago for Western consumers habituated to rising house prices and non-stop shopping. But this crisis threatens to be rather different, a Big One.

Already it has forced the British Government to engage in what has been a heresy for almost three decades: nationalisation. Major crises — such as the Northern Rock debacle in Britain — are not matters of punctuation or pauses for reflection, but defining historical moments, marking the end of one era and the beginning of another.

Tags: current, economics, explained

Bond insurer woes could become market tsunami: Spitzer

Thu, 14 Feb 2008 10:39:01 GMT

clipped by: tabsey
clipper's remarks: The steam roller is rumbling.

Clip Source: www.reuters.com

WASHINGTON (Reuters) - The bond insurer problem must be fixed, or else it could become a "financial tsunami" that wreaks havoc on the broader economy, New York Governor Eliot Spitzer is due to tell the U.S. Congress on Thursday.

A copy of Spitzer's prepared testimony was obtained by Reuters on Wednesday.

New York State Insurance Superintendent Eric Dinallo is working with banks on rescue plans for several bond insurers, which guarantee more than $2.4 trillion of debt and are expected to suffer big losses from insuring bonds linked to subprime mortgages and other risk assets.

Those losses threaten the top credit ratings that insurers need to win new business. If insurers are downgraded by ratings agencies, investors that can only hold top-rated bonds may have to sell billions of dollars of securities, lifting borrowing costs for cities and consumers alike.

About two-thirds of bond insurers' business is guaranteeing municipal debt, and one-third is insuring repackaged consumer debt.

Tags: economics

unconstitutional abuses that target taxpayers

Tue, 12 Feb 2008 02:35:20 GMT

clipped by: tabsey
clipper's remarks: The article is interesting and provides some insight

Clip Source: www.infowars.com

Reading the statements of Ron Paul allowed me to draw many conclusions:

The Federal Reserve system was created and activated one year before World War I and has used every war since then to increase the Federal debt.

The Federal Reserve system is regulated by an independent entity whose many members are anonymous, their agenda is secret, and their existence is foreign to our Constitution.

The Federal Reserve system has taken control of America’s gold, has sold much of it to foreign countries, and refuse to inform Congress how much gold still remains, or how much new money they print, or how much new credit they create.

The Federal Reserve system has transferred to the US taxpayer the legacy of debt created by failed economies in other countries, failed investment schemes, failed mortgage lenders, failed corporations, and failed foreign dictators.

The Federal Reserve system has used a printing press to destroy this country’s economy by making the dollar worthless though inflation

Tags: economics

How Bush Destroyed the Dollar

Mon, 11 Feb 2008 11:44:14 GMT

clipped by: tabsey
clipper's remarks: Manufacturing & Technology News, Washington
Some will enjoy but most won't.

Clip Source: www.informationliberation.com

It is difficult to know where Bush has accomplished the most destruction, the Iraqi economy or the US economy.

In the current issue of Manufacturing & Technology News, Washington economist Charles McMillion observes that seven years of Bush has seen the federal debt increase by two-thirds while US household debt doubled.

This massive Keynesian stimulus produced pitiful economic results. Median real income has declined. The labor force participation rate has declined. Job growth has been pathetic, with 28% of the new jobs being in the government sector. All the new private sector jobs are accounted for by private education and health care bureaucracies, bars and restaurants. Three and a quarter million manufacturing jobs and a half million supervisory jobs were lost. The number of manufacturing jobs has fallen to the level of 65 years ago.

This is the profile of a third world economy.

Tags: economics

AP Poll: Leaving Iraq Will Help Economy

Mon, 11 Feb 2008 07:27:00 GMT

clipped by: tabsey
clipper's remarks: It has economic logic.

Clip Source: www.truthout.org

Washington - The heck with Congress' big stimulus bill. The way to get the country out of recession - and most people think we're in one - is to get the country out of Iraq, according to an Associated Press-Ipsos poll.

Pulling out of the war ranked first among proposed remedies in the survey, followed by spending more on domestic programs, cutting taxes and, at the bottom end, giving rebates to poor people in hopes they'll spend the economy into recovery.

The $168 billion economic rescue package Congress rushed to approval this week includes rebates of $600 to $1,200 for most taxpayers, the hope being that they will spend the money and help revive ailing businesses. President Bush is expected to sign the measure next week. Poor wage-earners, as well as seniors and veterans who live almost entirely off Social Security and disability benefits, would get $300 checks.

Tags: economics

Bush: Will sign economic stimulus bill next week

Sun, 10 Feb 2008 02:00:47 GMT

clipped by: tabsey
clipper's remarks: Trade off, or has Bush been advised by his bosses that the measures are needed.

Clip Source: www.reuters.com

WASHINGTON (Reuters) - U.S. President George W. Bush said on Friday he would sign a $152 billion economic stimulus package into law next week.

The Senate and House of Representatives on Thursday approved the measure, a series of tax rebates and business incentives aimed at staving off an election-year recession in the struggling U.S. economy.

"We are in a period of economic uncertainty and we've acted again," Bush told a conservative conference in Washington. "I want to thank the members (of Congress) for passing a good piece of legislation, which I will sign into law next week."

"This bill reflects our principles. It is robust, it is pro-growth, it stimulates business investment and it puts money into the hands of American consumers," he added.

Tags: economics

Banks urged to disclose losses

Sat, 09 Feb 2008 09:03:50 GMT

clipped by: tabsey
clipper's remarks: Anew twist - banks being told what to do. Usually they only cooperate when there is something to be gained.

Clip Source: english.aljazeera.net

Finance ministers from the "Group of Seven" rich nations have urged banks to come clean over their subprime-related losses, according to a draft statement.

The ministers and central bank heads of Britain, Canada, France, Germany, Italy, Japan and the US met in Tokyo on Saturday, to discuss the global economy, amid concerns of a slowdown.

Despite the meeting, analysts say a co-ordinated move by the G7 to bolster their economies is unlikely.

"Where co-ordinated action is found to be necessary, we will do all that is needed," Alistair Darling, Britain's finance minister, said in an interview with the UK's Financial Times daily.

"We are all after the same thing and this is to restore stability."

In an interview with Japan's Nikkei daily, Henry Paulson, the US treasury secretary, said banks should take losses and raise capital quickly to alleviate a credit crunch.

"The worst thing is if they don't raise capital, if they shrink their balance sheet and then restrain their lending," he said.

Tags: economics

Price of oil is famine as food plugs demand

Sat, 09 Feb 2008 08:32:47 GMT

clipped by: tabsey
clipper's remarks: A fair summary of the world we have at this time.

Clip Source: business.smh.com.au

VULNERABLE regions of the world face the risk of famine over the next three years as rising energy costs spill over into a food crunch, the US investment bank Goldman Sachs says.

"We've never been at a point in commodities where we are today," said Jeff Currie, the bank's commodity chief and oil guru.

Global oil output has been stagnant for four years, failing to keep up with rampant demand from Asia and the Middle East. China's oil imports rose 14 per cent last year. Biofuels from grain, oil seed and sugar are plugging the gap, but drawing away food supplies at a time when the world is adding more than 70 million mouths to feed a year.

"Markets are as tight as a drum and now the US has hit the stimulus button," Mr Currie said in his 2008 outlook. "We have never seen this before when commodity prices were already at record highs. Over the next 18 to 36 months we are probably going into crisis mode across the commodity complex.

Tags: economics