Security is both a feeling and a reality. The propensity for security theater comes from the interplay between the public and its leaders.
for more click hereAfter Captain Sutter had settled at Fort New Helvetia he was in the habit, at times, of sending fresh salmon to Yerba Buena. The fish were fresh-salted or smoked. Nathan Spear, who was an epicure, and lover of good things, appreciated these fish very highly. The idea suggested itself to his mind that something profitable might be done in salmon fishing on the Sacramento River. Not wishing to trespass upon Captain Sutter’s ground, although, of course, Sutter had no exclusive right to the fish in the river, Spear wrote to him on the subject and received encouragement to go up and engage in fishing there for salmon. He made several trips in 1840 and ‘41 in the schooner Isabella, camping on the bank of the Sacramento in a comfortable tent, and superintended the catching of the fish by the crew of his schooner and by Indians experienced in fishing, furnished by Captain Sutter. He took large quantities of salmon, filling the hold of the Isabella with fish packed in bulk, transported them to Yerba Buena, and disposed of them at satisfactory prices, packed in barrels and kegs of different sizes, to visiting vessels and to residents, making a good profit.
To Nathan Spear, therefore, is due the credit of having inaugurated the salmon fishery on this coast as a business, and of developing, to a considerable extent, an enterprise which has since grown to large proportions. On the last trip to the river in salmon catching Mrs. Spear accompanied her husband.
LAS VEGAS - In the latest sign of the economic free fall, U.S. citizens are starting to show up in the early mornings outside home improvement stores and plant nurseries across the Las Vegas Valley, jostling with illegal immigrants for a shot at a few hours of work.
Experts say the slow starting but seemingly inexorable trend is occurring nationwide.
"It's the equivalent of selling apples in the Great Depression," said Harley Shaiken, chairman of the Center for Latin American studies at the University of California, Berkeley.
Hong Kong hasn’t been the only tax jurisdiction implicated in the past year. UBS admitted in February that it helped U.S. clients create sham companies in Panama and the British Virgin Islands, while hiding the true owners from the U.S. Internal Revenue Service. UBS clients who pleaded guilty also implicated Singapore, Liechtenstein, Mexico and the Cayman Islands.
The IRS is analyzing a trove of information from more than 7,500 taxpayers who voluntarily disclosed their offshore accounts this year to avoid prosecution. To qualify, clients had to disclose everyone who handled their money overseas and everywhere it went.
This is going to get exciting!
Ben Bernanke has declared the recession over.
This leads to one simple question: Why should you care what his recession forecasts are?
Based on his track record as a forecaster and his acumen in identifying economic problems before they exploded, his views on starts and finishes of recessions are, to be blunt, irrelevant.
Recall it was Mr. Bernanke who described the sub-prime situation as “Contained;” it was he who believed Housing would not spill over to the broader economy; and it was he who somehow thought the Bear Stearns situation was a one-off.
I don’t wish to single out Mr. Bernanke; After all, he is an economist, and if you were paying attention, you will note that the entire profession missed the oncoming recession, credit crisis and market collapse. You may also find it helpful to ignore what the profession that cannot forecast yesterday thinks about tomorrow.
Even now, the Federal Reserve Chairman said the recession was “very likely over” as consumers showed some of the first tangible signs of spending again. Never mind that all this retail activity has been driven by government subsidies.
Now, as an investor, you do want to be mindful of the Fed Chief’s economic views, particularly how they pertain to his interest rate policies. The ed has made it clear rates are staying low for the foreseeable future, so this becomes a non-issue in this context.
But his economic forecasts? Don’t bother.
Note that I have not been a particularly harsh critic of the Fed Chair. While he may not be Paul Volcker, he is also (thankfully) not Alan Greenspan. And we could have done much worse than having a student of the Great Depression, who is also an out-of-the-box thinker as Fed Chief.
But as a prognosticator? He is no better than his predeccessor . . .
Citigroup also increased its loan loss reserves more slowly in the first quarter, adding $10 billion compared with $12 billion in the fourth quarter, even as more loans were going bad. Provisions for loan losses cut profits, so adding more to this reserve could have wiped out the quarterly earnings.
Although the Dillards aren't single-handedly responsible for bluegrass' migration from Appalachia to California, there's no denying they provided vital transportation. Raised in Salem, Mo., brothers Rodney and Doug Dillard jammed in a string of outfits before forming their own in 1960. The newly christened Dillards soon relocated to Los Angeles, where they made several appearances as the Darlings on the Andy Griffith Show. More importantly, the group became a pillar of the burgeoning folk/country-rock scene, along with the Byrds, Gosdin Brothers, Clarence White, etc. In 1967 Doug jumped ship to team up with ex-Byrd Gene Clark in the now legendary Dillard and Clark.
“The spending binge by colleges and universities was part of the same trend that created the bubble in the rest of the economy,” says Ronald Ehrenberg, an economics professor at Cornell University in Ithaca, New York, and author of “Tuition Rising: Why College Costs So Much” (Harvard University Press, 2000). “Now we’re seeing it burst.”
From Harvard University to California’s 3 million-student community college network, the American system of higher education is in turmoil. The economic crash is upending each step in the equation that families use to determine where students will spend four of their most formative -- and expensive -- years. Today is the deadline that most schools set to receive a decision from accepted applicants.
April 29 (Bloomberg) -- Ron Grassi says he thought he had retired five years ago after a 35-year career as a trial lawyer.
Now Grassi, 68, has set up a war room in his Tahoe City, California, home to single-handedly take on Standard & Poor’s, Moody’s Investors Service and Fitch Ratings. He’s sued the three credit rating firms for negligence, fraud and deceit.
Grassi says the companies’ faulty debt analyses have been at the core of the global financial meltdown and the firms should be held accountable. Exhibit One is his own investment. He and his wife, Sally, held $40,000 in Lehman Brothers Holdings Inc. bonds because all three credit raters gave them at least an A rating -- meaning they were a safe investment -- right until Sept. 15, the day Lehman filed for bankruptcy.
“They’re supposed to spot time bombs,” Grassi says. “The bombs exploded before the credit companies acted.”
With home price increases out of the CPI and the price-to-rent ratio rapidly increasing, an important component of inflation remained outside the index. In 2004 alone, the price-rent ratio increased 12.3%. Inflation for that year was underestimated by 2.9 percentage points (since “owners’ equivalent rent” is about 23% of the CPI). If home-ownership costs were included in the CPI, inflation would have been 6.2% instead of 3.3%.
With nominal interest rates around 6% and inflation around 6%, the real interest rate was near zero, so household borrowing took off. As measured by the Case-Shiller 10 city index, the accumulated inflation in home-ownership costs between January 1999 and June 2006 was 151%, but the CPI measured a mere 23% increase. As the Federal Reserve monitored inflation in the early part of this decade, home-price increases were no longer visible in the CPI, so the lax monetary policy continued. Even after the Fed began to slowly raise the fed-funds rate in May 2004, the average rate remained low and the bubble continued to inflate for two more years.”
WSJ - Steven Gjerstad and Nobel Laurelate Vernon Smith
"We cannot have both debt leverage and a hyper-efficient system—the volatility is just too great. What Taleb explains—which no one else does—is that efficiency is already a form of leverage. A highly efficient system removes slack and magnifies small changes. Think of the efficient system as a high-performance aircraft. Each minute of steering input creates a rapid and violent shift of course, speed, or altitude. The system itself is souped up even before you add the debt. Once you do, the pilot is equally jacked up and twitchy, creating an explosive combination. Now imagine that fighter jet trying to fly in a 1,000-plane formation, and you get an idea of the world financial system in the 21st century.
We can’t erase the technology that created the planes, so we’ll have to make sure we fly sober, maybe even with an onboard computer that dampens the controls. That means getting rid of the debt. It’s that simple."
Technically, 7,470 in the DJIA is the 50% retracement of the entire bull market that began in August 1982. At 7,100, we not only cut in half the October 2007 highs of 14,198.50, but we have given back 50% of the 27 year move from the start of the big bull market of the 1980s to yesterday. In addition to a 50% retracement in the DJIA from the 1982, we have also seen a 50% retracement of the move from 1932 low to the all-time high in 2007. 50% retracement of 41 - 14,164 = 7,103. Yesterday’s close was 7,115.
Your tax-deferred annuity is safe. A qualified legal reserve life insurance company is required to meet its contractual obligations to you. These reserves must, at all times, be equal to the withdrawal value of your annuity policy. In addition to reserves, state law also requires certain levels of capital and surplus to further increase policyholder protection. Legal reserve refers to the strict financial requirements that must be met by an insurance company to protect the money paid in by all policyholders. These reserves must be at all times, equal to the withdrawal value (principal plus interest less early withdrawal fees, if any) of every annuity policy. State insurance laws also require that a life insurance company must maintain certain minimum levels of capital and surplus, which provide additional policyholder protection.
The suburban Los Angeles Democrat made the $150,000 loan in 1998, when she was first elected to the U.S. House of Representatives. Through Dec. 31, her campaign committee has used donations to pay Napolitano $221,780 of interest while reducing the principal by just $64,727, a review of her Federal Election Commission filings shows.
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