Enjoy Banking

Enjoy American Innovation

David — Tue, 21 Jul 2009 10:03:26 +0000

Jeff Immelt

Enjoy our roots. GE Chief Jeff Immelt makes a compelling argument for the need for America to return to the innovation and hard work that made us an economic world power in order to remain competitive in today’s global economy. We need to get away from the passive consumerism that has become so prevalent and focus on developing cutting edge technology and manufacturing that the rest of the world wants. To thrive in the global marketplace, we need to produce more and increase domestic sales and exports relative to how much we consume from other countries. If we don’t stay on the cutting edge of these key industries, we can only watch as the money flows out of our national economy.

Lockheed F-22

SOURCE LINK: Financial Times

Enjoy Asian-Led Recovery

Dr.VonMises — Tue, 21 Jul 2009 09:56:59 +0000

Soros

George Soros says China will be the “motor” of global economic recovery given its trade surplus, substantial reserves/savings, and potential to stimulate domestic consumption. The IMF seemed to agree with Soros’ fairly upbeat assessment, positing that the world economy could grow at a rate of 2.5% in 2010, up from a projected 1.9% in 2009.

SOURCE LINK: Bloomberg

Nails Files for Bankruptcy

David — Tue, 21 Jul 2009 09:55:21 +0000

Lenny Dykstra Dives into the Red, Head-First. The former Met, who later became a financier, filed for Chapter 11 today, owing as much as $50 million to creditors and claiming less than $50k in assets.

SOURCE LINK: Bloomberg

New Chapter in The Great Recession

Dr.VonMises — Tue, 21 Jul 2009 09:53:42 +0000

Pimco’s Mohamed El-Erian says the government is now tasked with the unenviable challenge of tackling persistently high unemployment and falling wages. While the first chapter of the recession involved restoring the banking system and stabilizing financial markets, the government’s stimulus package did not envision a period of high, prolonged unemployment. As such, El-Erian suggests the recession of entering a new chapter — one dominated by Washington’s attempt to deal with the social consequences of joblessness.

SOURCE LINK: Pimco

Enjoy Animal Spirits

Dr.VonMises — Tue, 21 Jul 2009 09:53:09 +0000

Robert Shiller: Fundamental problem is fear. Both Shiller and Nouriel Roubini are calling for more stimulus to avoid a repeat of Japan’s so-called lost decade, in which growth stagnated over a prolonged period.

SOURCE LINK: Bloomberg

Enjoy Keyesian Solutions?

Dr.VonMises — Tue, 21 Jul 2009 09:45:55 +0000

Paul Krugman beckons for more stimulus, more government spending-fueled job creation. According to the Keynesian disciple, with all monetary policies options exhausted, Obama must spend spend spend to stave off growing unemployment. Would tax cuts — also a form of fiscal stimulus — get money into the economy more quickly and efficiently — leading to more growth and jobs? While more stimulus may be the solution, Obama should consider more tax cuts as well.

SOURCE LINK: NYT

Enjoy GangGreen Shoots

Dr.VonMises — Tue, 21 Jul 2009 09:45:35 +0000

100 year old business lender CIT has retained bankruptcy counsel — Skadden, Arps — while it attempts to negotiate FDIC guarantees for its critical day-to-day funding needs. According to Bloomberg, the quasi-bank commercial finance company lends money to over 950,000 businesses globally. Similar to GE Capital and GMAC, a significant portion of CIT’s funding comes from the short-term commercial paper markets as opposed to the basic retail deposits that fund traditional banks. CIT’s commercial paper is subsequently purchased by money market funds and other short duration fixed income investors. With the credit quality of CIT’s loan portfolio continuing to deteriorate, many fear bankruptcy or a fire sale is the lender’s only option.

SOURCE LINK: Bloomberg

Pete Peterson Enjoys a Challenge

David — Tue, 21 Jul 2009 09:45:06 +0000

Pete Peterson sits down with Charlie Rose to discuss his attempts to raise awareness of America’s fiscal challenges through his Peter G. Peterson Foundation.

SOURCE LINK: Charlie Rose

Peter G. Peterson Foundation

Enjoy Algae

Dr.VonMises — Tue, 21 Jul 2009 09:42:24 +0000

Rex Tillerson, Exxon CEO (AP)

Exxon partners with Synthetic Genomics to develop algae-based fuel technology. CEO Rex Tillerson, who has derided corn-based ethanol as “moonshine,” expects meaningful production of algae fuel to be at least 5-10 years away. While Exxon will only invest $300-$600 million initially, the energy giant could throw billions at the innovative concept if the technology proves to be successful. In contrast to corn, palm, and sugar-based ethanol — none of which cannot yield more than about 600 gallons of fuel/acre — an acre of algae production could make 2,000 gallons of fuel.

SOURCE LINK: NYT

Enjoy Canadian Banking

Dr.VonMises — Tue, 21 Jul 2009 09:40:32 +0000

How Canada’s banks avoided the financial crisis.

SOURCE LINK: USA Today