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Bubbles are a function of human nature according to Greenspan

Alan GreenspanThe former Chairman of the US Federal Reserve (Fed) Chairman Alan Greenspan has always been a student of economics. After the financial crisis, he became a student of human nature. Sitting in his office overlooking the Washington Monument, Greenspan is eager to share his insight that in his latest book “The Map and the Territory”, to be printed in the fall.
The 88-year-old Greenspan was Fed chairman for more than 18 years in the period 1987 to 2006, he managed to bring the economy in many crises primarily through lower interest rates and optimism.
But after leaving office, he has experienced a remarkable fall. He apologized for having believed too many of the big banks again reconsider his views on the economy. Greenspan is currently president of the consulting firm Greenspan Associates LLC.
“The economy will do everything necessary in the short term, supported by a strong rise in the stock market”, he says, but remains worried that “we may be facing a new downturn”. According to him, the biggest challenge facing the Fed is how the central bank to cut its huge balance sheet with minimal consequences. “It will not be easy, and obviously it is not clear how it will happen”, said Greenspan, hoping that the Fed will stop smoothly the current monetary course.

Germany presses EC for green energy discounts

Green Energy discounts EUBrussels has been under pressure from Germany to loosen restrictions on subsidizing clean energy to clear the way to the German Government the adoption of the crucial law on renewable energy sources. The European Commission (EC) will probably change the rules on State aid, which would allow one party to the rapid removal of subsidies for renewable energy, but at the same time continuing the rebates for green energy on a large scale indicates publication.
Amendments to the rules will allow the German government to adopt new law on renewable energy without impacting the requirements of the European Union (EU). The reform of the German Energy became necessary after the previous government of Angela Merkel has decided to abandon nuclear energy after the Fukushima accident. The biggest challenge for the Chancellor, however, to shift towards renewable sources, and who will pay for the turn in energy policy. The proposals to change the state aid rules that allow the phase out of subsidies for green energy, have brought criticism from environmental groups. According to them, these rules will greatly hinder competition with big energy companies who still cling to fossil fuels and nuclear energy. The EU Competition Commissioner Joaquin Almunia insists, however, a more market-oriented system to support renewable energy sources to prevent waste of taxpayers’ money.

Market expects 8% growth of S&P 500 in 2014

Indexes USANearing the end of 2013 – the year which was really impressive to investors. So far, stock indexes, especially those in more developed markets, offers more than well. Remains few weeks, but now the situation looks like this: Topix is up by 44%, S&P 500 increased by about 25%, while European shares measured by the Stoxx 600 rose 11%. In more general terms, MSCI World Index rose by 19%.
The year 2013 is the best of the last 15 years for US equity markets, with the greatest force this applies to S&P 500. The main question is – what can we expect next year?
Among the 20 surveyed leading experts most optimistic set of these Morgan Stanley. According to them, S&P 500 will go above the level of 2000 points in the next calendar year. In fact, they expect that in 2014 it will reach exactly 2014 points, an increase of 13%. The most conservative estimate does comes from Stifel Nicolaus, who expect a decrease. Currently, the index is at around 1775 points, and the company predicts that next year it will fall further to a level of 1750 points.

Greece can emit 50-year bonds under European pressure

Government BondsGreece announced that it was examining technical issues relating to the issuance of 50 -year bonds to further restructuring of its debt and make it more sustainable. This surprised many, since the country has no access to global capital markets in 2010, but powerful interests can make this happen. Recently, Finance Minister of Greece Ioannis Sturnaras said: “I hope that we will have 50-year bond. This means that our debt will be significantly reduced along for 50 years”. In 2013, Greece will have a gross public debt of around 322 billion euros, or more than 175% of GDP, which is anything but not controlled. The country may need another injection of 10 billion euros to finance between mid- 2014 and end of 2016.
The idea of ​​Greek debt to be sustainable by 2022 stopped the Greek parliamentary Supervisor’s budget through a rare recognition. They say: “It is unrealistic to believe that Greece will be able to return to financial markets as early as 2014 and that debt will require further cut to be sustainable”. Greece received 240 billion EUR in rescue two tranches. Country seeks ways to replace and increase the duration of bilateral loans worth between 53 billion to 110 billion EUR of 50-year bonds. Of course, such a move would be directed against the partial derecognition because the mere extension of bilateral loans and lower interest rates will not be sufficient to public debt repayable. The local population has reached the bottom and can not tolerate or pay more taxes, nor to accept future reductions in salaries and pensions as conditions recently tagged IMF chief Christine Lagarde.

Wall Street praised the withdrawal of Larry Summers

Larry SummersThe session on Wall Street ended with the rise of Dow Jones and S & P 500, after the person nominated by the US President Barack Obama’s successor to Federal Reserve Chairman Ben Bernanke – Lawrence Summers himself withdrew from the race for the post. The “Blue chips” added 0.77 percent to 15,495 points, led by shares of Boeing and General Electric, but the shares of Hewlett-Packard, Microsoft and Intel put the brakes on the meter. The index of 500 large companies did increase by 0.59% to 1,698 points. Only the Nasdaq ended the session with a fall of 0.11% to 3718 points. The index heavy stocks of Apple, which fell 3% after a report was published that the Chinese carrier gives a lower subsidy for new iPhone. Among the gainers were shares of Facebook, after Goldman Sachs raised its assessment of the price of the lot. Just this month, the company’s market value has increased by 8 percent. The market participants rely on Janet Yellen as a possible successor to Bernanke. They see it as closer policy that leads the current Fed chairman, and expect that it will withdraw liquidity from the economy rapidly.
“I do not think the markets were aware of exactly what the Fed chairman would be Summers, so after dropping out of the race things look more confident and relaxed”, said Colleen told Bloomberg accompanied, director of Osborn&Scarborough in San Francisco. “It seems that a possible reduction program for the purchase of bonds is now accepted by the market, so expect modest movements”, she predicted.

Learn About Personal Loan In This Article

CashWhat is a personal loan?

Many people want to get a personal loan whenever they need some quick cash. Most people usually need this loan for their emergency purposes. In some cases, people may need this loan to purchase some items that they really want. There are many companies that offer this loan for all clients. This article has many great information about this loan. People should read this article before they take any loans for their purposes. This loan is considered as the best solution for people who want to save their personal finance condition.

How to find the best personal loan?

There are many types of personal loan that people can find on the market. Choosing one of them can be difficult for people who do not know how to do so. There are several important factors that should be considered when choosing the right personal loan.

a. Choose high reputable loan company

This is the first tip that people can use when they want to find the best loan for their purposes. It is very important to choose high reputable loan company. It can be done by looking at the customer reviews that are available on the Internet, newspaper, magazine, and many other resources. By looking at these reviews, people can find the best loan company that has many positive reviews from all customers.

b. Check the interest rate

This is another important factor that people have to consider when choosing the right personal loan. Interest rate can be a very crucial item that should be considered when selecting a good personal loan. The best loan should have low interest rate. It is a good idea to compare all available options before choosing a personal loan. By comparing all loan options, people can choose the best loan with the lowest interest rate available.

c. Decide the repayment period

When taking some types of loan, including personal loan, people need to calculate their ability to repay their loan. It is related with the repayment period. All customers are allowed to decide their repayment period. However, this decision should be taken at the beginning of the loan period. This repayment period can determine the amount of money that people have to pay every single month. That is the reason why all customers should calculate their ability to repay the loan properly. This is very important to avoid any problems that may occur in the future.

They are some useful tips that people can use to find the best personal loan. Finding a good loan can be very important for people who need emergency funds immediately. There are many loan companies that advertise their companies on the newspaper, Internet, or other media. As the result, people can find their favorite loan companies easily. All customers should make sure that they read the contract very carefully before taking any personal loans. This contract usually has some important points about the loan and how customers can repay the loan. It is recommended that customers read all details in the contract before signing it.

S&P 500 held above 1700 points

USA Wall StreetThe index S&P 500 managed to hold at a record high of over 1,700 points after came a series of positive data for the manufacturing sector in China and the Eurozone, leading central banks have pledged to maintain stimulus for the economy. At the end of the session on Wall Street Dow Jones rose by 0.83% to 15,628 points, S & P 500 added 1.26 percent to 1,707 points, while the Nasdaq rose 1.37% to 3676 points. All 10 industry groups in the composition of the S & P 500 ended the session with gains. The shares of Procter & Gamble Co. rose after the company’s financial results exceeded expectations.
Market valuation of DreamWorks added over 8 percent also infect better financial results, while that of Exxon Mobil Corp. fell after the company’s profit did not meet analysts’ expectations. With an impressive 26% gainers on Yelp, after the company announced that sales in the second quarter jumped 69% to 55 million USD in estimated 53.3 million USD. The European and British central banks kept the level of key interest rates. Later, ECB President Mario Draghi confirmed that the bank will keep the monetary policy “for an extended period of time” as the economy strengthened. Yesterday, the Fed also committed to continue with economic incentives, while not noticing sustainable recovery and visible improvement in the labor market. According to the US Central Bank is at risk too low inflation hinder recovery

Optimism in USA infected the Asian markets

USA financesThe optimism, which covered the United States after the publication of the GDP data for the largest economy in the world for the second quarter infect Asian stock markets on Thursday. The Chinese benchmark Shanghai Composite jumped 1.8%, while Hong Kong’s Hang Seng rose 0.9%. The growth came after the official China PMI index unexpectedly rose to 50.3 points in July to 50.1 points in June. All values ​​above 50 indicate improvement in business conditions. The official government data differ from earlier results by HSBC, which showed a drop to 47.7 points, reaching 11-month low.
“The growth in the official China PMI index did not come out of the blue. Official data give greater weight to heavy industry where there was a twist in the last few months”, commented in a note to clients of Capital Economics. “The demand for investment remains strong, as the government encouraged industrialization and urbanization”, said Sue Shaosha on Wednesday, the head of the National Commission for Development and Reform Commission, said in a statement on the website of the department. “We are confident that we have the conditions and ability to achieve projected annual growth of around 7.5%”, said he.

Fed keeps watch over the banks influence on the raw materials trade

FEDThe development of Wall Street banks as oil traders, natural gas, coal and industrial metals is under threat as the US Federal Reserve has begun to reconsider a number of marketing authorizations with physical materials issued in the last decade. In recent weeks, senior Fed officials have discussed with the managers of the banks whether to prohibit credit institutions to hold assets in physical commodities, sources said the British edition, familiar with things. Measures could put pressure on profitable niche banks like Barclays, Goldman Sachs, JPMorgan Chase and Morgan Stanley. Just 3 years ago JPMorgan as spend 1.6 billion USD to acquire units for oil, metals and coal in the world of RBS Sempra Commodities. The US regulation allows banks to trade derivatives on commodities such as futures contracts. In 2003, the Fed expanded those rights, giving permission for Citigroup’s ownership of natural oil, gas and grains as a substitute for derivative instruments. By 2008, these permits were issued to several banks and that they are subject to review at the moment.
“The Fed regularly monitor the actions of observed commodities companies and review its decision of 2003 that some activities to complement the raw financial measures and are therefore eligible for the companies that own banks”, said the US central bank.

Japanese stock markets reacted poorly to the victory of Abe

Abe JapanThe major Japanese stock indexes reported slight changes in today’s session after Prime Minister Shinzo Abe received a vote of confidence in its economic policy, known as “Abenomika”. Justifying mass estimates, led by Abe’s Liberal Democratic Party won a majority in the upper house of parliament in Sunday’s election, according to preliminary results. Once in early trade advanced 1.2%, the benchmark Nikkei 225 stock average sank profit to 0.5%. The analysts attribute this development of the stock market likely victory of the ruling party had already been calculated in the share price and trading strategies. Since he assumed the premiership at the end of last year, Abe made policies to overcome deflation in Japan and to accelerate growth.
“We have won public support for a strong and stable policy so that you are able to pursue its economic goals and will ensure that we fulfill the expectations”, said Abe to Japanese public broadcaster NHK, after the media announced that the Liberal and coalition their partner have won the required majority. The analysts note that Abe can now start implementing painful economic reforms relating to the “third dart” of planned policies, the first two are weak monetary policy and government spending.