Economy
Phases of the financial crisis
Since that financial markets are bullish at a time until they reach what later may be appointed as the minimum altitude reached by trading in a crisis, and will produce several distinct phases in the markets . In fact, the best financial analysts are those with measures of technical study of the bag are able to predict before each and every one of these phases to be able to move capital so as to benefit them most.
One of the best theories that have existed for interpreting the movements of the market which was inadvertently created the unbeatable Charles Dow (which today gives its name to the technology index of New York Dow Jones) who unwittingly and thanks to their movements that did business many scholars tried to form a single theory that tried to predict the movements as the stock had done. The Dow theory literally said: “As commuting around averages as all the factors affecting supply and demand of the market are reflected in these indexes.”
Rebellion on the Farm
I will be brief in this post. Even a little shorter than the work that I recommend, which is none other than THE ASHES (download here), of Orwell. A fascinating tale, a modern fable in which the author of the much better known 1984, recreates the Soviet Revolution through the vicissitudes of a farm and their animals who rebel against the tyranny of the owner. It was carried at a stretch, and is totally devastating. A real delight.
The recommend here and now by the tendency of fund to be saying this: full power to politicians . And when I say everything is all. The Keynesians, neo-ex-communists, the political upstart, in summary, the intervention of various shapes and sizes, all of them dream of breaking the market, with domarlo, with submission to their darkest desires. Strategic say what it sends about the social role it imposes, say others. I think that Orwell takes a precise manner as just such adventures. Incidentally, in the final outcome of it, almost to I evokes the current state of Chin a.
For those with an intolerance to let them read the links on YouTube, a film version. Less is nothing, but it’s clearly the best book. Remember their motto: All animals are equal. But some are more equal than others .
In The Blog Salmon | The Newspeak, in key economic
Links | Youtube Video I, II, III, IV, V, VI, VII
Other big losers in the current situation
The situation of financial difficulties and the resulting economic disturbances is hitting a lot at the moment .
One of the impacts that have proved positive for the vast majority, and also for inflation, is a significant reduction in the price of oil .
To think that until unoas few weeks, the price of a barrel of oil was about $ 147 surprises, now that we see it below $ 50 a barrel.
However, are losers .
Strategic ¿? Oui, C’est moi
Are approaching Christmas. Advertising on television is beginning to saturate toys, cava, and so on. And the ads stand out, the money being spent on them and often by ínfulas creativity, the perfume. Not if Cacharel took advantage of some Christmas to get the spot for its fragrance and Lou Lou’s famous basket Moi, but could well be. Now, in these festivities will be tinged with mourning crisis I wonder if the announcement could not be retrieved by some business sectors, as it comes to hair.
Why do I say this? Since that was unleashed the crisis has created a curious alliance. On one side of the entrepreneurs who seek salvation at the expense of public money. On the other that of politicians, genetically interventionist, seeking to further increase its power in our societies (they seem to be little influence). And, regardless of means, as we will see that they are not innocent, and other tools, justify the diversion of huge sums of public money to the private sector with arguments as occurring. One of the most often repeated is that a company, a sector, are strategic . And if that is not enough, is used as systemic risk. And among us, beginning to be a little tired, because in this romantic atmosphere between politicians and businesses, To er world and ejtratejico , I would say the best of Summers. Strategic , asked the politician with the euros in his hand. Yes, I’m , the sector responds alluded to the choir . Read the rest of this entry
Securing debt is also illegal subsidy
A while ago, in these pages, denounced the decision by the Italian government to guarantee a debt of the Italian airline, Alitalia, to be illegal. As would guarantee, they said they could not be considered the same as a grant.
The European Commission (EC) said that, if a financial or operational maneuver helps a company meet its European competitors, it is illegal . It is clear that the guarantee of debt a company is a help discriminatory and appears that the EC agrees with us, at least in theory.
Alitalia has been in operational difficulties for some time , nothing new for airlines and state, as a result, its financial performance have required continuous dad backs state.
Motown: Music industry
The music amansa to the beasts? We know. To me, good music, I change the mood with ease. And among my favorite groups, I have always had a little corner for Depeche Mode, which attracted me at the outset certain influences with the so-called industrial sound.
Sound industrial. I think it sets a very specific musical style. Yet it could also be seeking other meanings. I speak of that sound, those artists, groups, etc … in which there is a strong connection with a particular industry, with a particular business sector. And as an example of what I speak up, this TAMLA Motown.
TAMLA Motown, record label better known as Motown itself, is the creator of a sound own soul in the universe. Your relationship with the world engine, the car goes far beyond its name to borrow the name under which it is known Detroit , the city’s motor : Read the rest of this entry
Car manufacturers seek aid
After plans to rescue the banks, it seems that those who are getting to the queue to ask for money to the governments are car manufacturers. In USA the thing is very warm, because the major manufacturers are calling for more aid worth 20,000 million dollars .
According to these manufacturers, the situation is critical. In fact, say that if they have to close for no access to such aid, USA is heading to a national catastrophe, with massive destruction of jobs. To convince the senators and congressmen even released a video in which they said that the survival of the industry was a need for national security. Come on, getting people to fear that such pressure the government.
Raising awareness in education
The third version of the Did you know?, Revision of the original created in 2006 by Karl Fisch, was a way of understanding and awareness to the teaching profession as it evolves over the world in economic, social, demographic and technological. Data as they do to see that slabs duration of cycles, ever more frequently are shortened, in a few students who learn more easily in a world in a few years, and it completely globalized.
Understanding this reality is essential, with examples like the one that indicates that people will get have, during our working life, up to 14 different jobs … And it is from the bottom in education, and in the process of forming the new generations, which must tackle all problems that will occur. A society well-educated, economically better be ready. That is the message, and more, if in these times of increased public spending to help the economy, consignments of aid or grants to programs dedicated to education and innovation and development (ID), disappearing or being trimmed its very allocations. That means bread for today and hunger for tomorrow, in a society like ours that recedes, competitively, compared to the economies of some developing countries that are pressing hard.
Via | The shell
More information | The dreams of reason
The Spanish real estate crisis explained by The Economist
In the next issue of British magazine The Economist is an analysis of the Spanish real estate crisis, which is something being covered by the international financial crisis. In Spain we have a serious problem that we are going to drag though the global financial system recovers, and is our excessive dependence on the construction , which has come to an end.
According to the magazine, in Spain still much we do not believe this crisis. Spaniards are not used to that house prices fall, and this is bound to lack of reliable data. If the Housing Ministry speaks of a fall of 1.3% in the third quarter of the year most experts believe the real figure should be around 8%. Many new works are being sold with discounts of up to 20%, but the builders did not recognize it for fear of losing customers, clients, which most likely break their contracts to seek a better offer.
The ECB will lower rates to 2.5%
Few minutes ago, the European Central Bank president Jean Claud Trichet has announced that it will be trimmed interest rates in the euro zone 75 basis points, from 3.25% in which was located after two consecutive downhills to 2.5% . A level well below what it had been marked during the last few years and demonstrates the evil moment of the economy and the efforts of ECB by reactivating it.
This lowering of interest rates on everything will be 3 impacts, easier for banks to obtain funds European central bank, the lowering of the Euribor as banks are trustworthy to each other the money at a lower price ‘to’ and under normal conditions would be a capital flight investors in europe to get less profitable, something that surely will not happen, because in the U.S. or Japan interest rates are below the 1%.
The ECB will lower interest rates half point
Two consecutive downs, the second yesterday, leaving half a point interest rates in the eurozone at 3.25% . Definitely the ECB sees inflationary risks and far greater concern is the recession looming before us. The ECB also left the door open to further decreases in rates.
For his part, the Bank of England has aggressively lowered rates one and a half, leaving them at 3%. They are taking more extreme measures to try to revive the economy. In the ECB was discussed applying a drop of 0.75%, but in the end voted unanimously that it was only half a point.
I still think that these decreases may not have any effect if the contraction of claims still like now. What else is that banks obtain cheap money if you do not lend to anyone because they fear a resurgence that the liquidity problem or late payment ?
Without enmbargo, now that the Euribor reference anything, this makes their descent soil is even further away. Good news for the mortgage, something that will be better off if the rates are reviewed in a few months.
Via | The Economist
Image | Yossi
Savings daily consumption of smart new blog
Weblogs SL, editor of The Blog Salmon, today introduced a blog that insurance is of interest to many of our readers. The blog is called Save daily, and betting on the habits of consumption intelligent . We can find tips and tricks that are always expected to receive income that we give our maximum performance.
In times of crisis better than what a blog to read tips on ways to save money with our consumption habits. For example, we can save on heating, clothing, and even in our Christmas shopping.
Without a doubt a perfect complement to the readers of this blog.
Link | Save daily
And the whirlwind continues to grow
In the fall of European stock markets and the dow jones yesterday, despite a cut in rates, followed by the Asian stock markets today in a trend that reinforces and demonstrates the systemic breakdown of the current economic model and reality of his whirlwind. The unemployment data for the U.S. economy and to place him in the highest since 1983, and that the recessionary forces not yet synchronized. The IMF has again reduced its projection for global growth for next year, while Barack Obama has called on an urgent basis to its main economic advisers, Lawrence Summers and Robert Reich, giving top priority to stabilizing the patient who is in < > a coma .
Obama and his economic team spent much of the past three years developing policies to address the great issues of his country’s economy such as inequality (which rose sharply in the last three decades, see Krugman), care of health and the budget deficit. All this has been relegated to the background and his meeting Monday with Bush Obama will seek to settle some emergency plans to contain an economic downturn whose epicenter was in that country but that means globalization and under the hegemony of the dollar, has spread the entire planet to step winging. Once again, the sound principle of “exchange” in which economic theory has shown, and with good reason, for two centuries, shows its toll. The real benefits of globalization remained in the hands of the big multinationals, but
the heavy losses we are experiencing now must be paid by all the inhabitants of the planet in the course of several years.
This is why we find ourselves at a point of rupture, turning, where economic instability permanent shows us the end of a cycle and the beginning of another. The conflict intensifies as a pandemic. Hence the importance of this period and every hour and minute in which to build the foundation for future human or fall to the ravine of a capitalist system even more savage than in the past 30 years, or
Leadership collective that should be created from these ashes leads to a more redistributive and hopeful.
Joseph Stiglitz, in the latest edition of his book
Economy notes that prices are the key factor of the system: “prices convey information that is crucial and determine the forces of supply and demand.” Is the correct idea of von Mises with respect to the “traffic signals.” However, what happens when prices are pushed upward via speculative bubble as happened in the real estate market? If anyone did when they got to Robert Shiller, 2000, his book Irrational Exuberance, in which he denounced the phenomenon. The successful tends to be dull. The captain of the Titanic when it ordered the ship to run at full speed was a blind faith in the instrument. The same has happened with the economic model locomotive and the U.S.. The economic instruments that are considered self-perfect and has now demonstrated its fallacy, truth from his whirlwind. In its wanton and uncontrolled race is led to the collapse of scaffolding overall economic and social impact that we are unpredictable.
Image | edans
The pattern of the Banking
If we talk about pattern of the Bank, some may think of Emilio Booty. After all, I think that is true of the few bankers that exists in Spain, where bankers believe the owners of the banks. Booty will play their money (along with those of its shareholders) in decision-making and that very few in Spain and the world what they can say, and less assuming executive functions. But no, I do not mean this kind of pattern.
Others may think of Miguel Martín, President of the Spanish bank employer, the AEB. The pattern of patterns. But no, I am not thinking about this kind of figure. My reference is not of this world.
I am referring to the figure of the saint protector of a profession, an activity, a geographical area. And is that, although many are unaware of what, two days ago (sorry for the delay, but I was bundled), and l November 4, is held by the Bank of San Carlos Borromeo, his patron. It is customary to see Meals for financial professionals that day, slipping into an old tradition .
Certainly not know the reasons that led to this award canonized as a protector of the credit sector. Family was rich, very rich, but resigned to it, and some of the episodes that he was usually awarded to remind me of a certain disaffection for the luxury of dressing in the D. Emilio Botín father. If anyone can elaborate on the reasons for the association San Carlos Borromeo-Banking is welcome. My latest elucubraciones are routed to think that the etymology of the name, Carlos, as a wise man, may be a clue.
The fact is that the celebrations this year must have been rather sad, seeing what there is what come. Therefore, and for the sake of putting a drop of humor, albeit black, I would take the luxury of playing an old joke, which is awarded in each seat to a banker on duty. I know what Uncle Scrooge.
Everyday D. Scrooge went to his bank through the front door, which was always the same beggar. Every day he greeted him with: a limosnita, for the love of God . D. Scrooge went long. And so, day after day, was repeated like a mantra: a limosnita, for the love of God . And every day D. Scrooge the obvious. Until one day changed the phrase: a limosnita, for the love of God and the Virgin Mary . D. Scrooge was taken out of the pocket and banknotes few were surprised gave the man, who did not quite find an explanation for his success. D. Scrooge is so clear: with two guarantors if .
More info | Hearts
Pascal Lamy seeks four more years
When you hire a person for a period of four years and you give a single reason to be satisfied, if you do not succeed in those four years, should be renewed?
This is the question that several governments who decide to have to be made now that Pascal Lamy, director general of the World Trade Organization (WTO), has announced that wants to be renewed in May next year, when will fulfill its mandate of four years .
The only goal that had Mr. Lamy since he took office was to complete the negotiations in the round of international trade negotiations of the WTO began in Doha, Qatar in 2001 (Doha Round) and was already in negotiation for three years when Sr. Lamy took over the reins of the WTO.
Almost seven years and with many suspensions and resumed later, here are not yet completed Round credible and without concessions on the table .
This lack of credible concessions is especially notable for what’s coming from rich countries to are looking to offer the least developing countries with the goal and they open up their markets products and services to the wealthy. < >
Is not surprising that developing countries are upset and
do well to not give in to blackmail of the rich .
It seems to me that, with its four-year term, the
Mr. Lamy has had his chance and we must find someone new to try his luck.
The commissioner of commerce in the European Union, Peter Mandelson, just leave to a seat on the British government, leaving that post free.
To see if new faces also bring new ideas to the rich countries are convinced that
a free international trading system and without manipulation is good for all , including for them.
Via | Europa Press, Reuters and AFP
In The Blog Salmon | revive free trade negotiations and Less developed countries are getting tired
More information | Press Release of WTO
