Another day in the Universe
https://www.onthenatureofthings.net/forum/
Return on invested capital [ROIC] paints much less flattering picture of company valuations [than reported earnings].
Typhoon wrote:FT | Earnings shenanigans underpin Wall Street record
Return on invested capital [ROIC] paints much less flattering picture of company valuations [than reported earnings].
.
‘The pesky matter of debt has not disappeared: the level of global debt to gross domestic product is now 40 per cent higher than it was in 2008’
The reason isn’t as simple as Amazon.com Inc. taking market share or twenty-somethings spending more on experiences than things. The root cause is that many of these long-standing chains are overloaded with debt—often from leveraged buyouts led by private equity firms. There are billions in borrowings on the balance sheets of troubled retailers, and sustaining that load is only going to become harder—even for healthy chains.
The debt coming due, along with America’s over-stored suburbs and the continued gains of online shopping, has all the makings of a disaster. The spillover will likely flow far and wide across the U.S. economy.
With the GOP tax plan, said private equity financiers will make out like never before! The Obama administration made a tentative start in the right direction on this issue: education and re-training. Things have taken a step back under the Trump administration. But hey, it's what the morons who voted for him want, so can't feel bad about them reaping the coming whirlwind.Typhoon wrote:Bloomberg | America's 'Retail Apocalyse' is just beginning.
The reason isn’t as simple as Amazon.com Inc. taking market share or twenty-somethings spending more on experiences than things. The root cause is that many of these long-standing chains are overloaded with debt—often from leveraged buyouts led by private equity firms. There are billions in borrowings on the balance sheets of troubled retailers, and sustaining that load is only going to become harder—even for healthy chains.
The debt coming due, along with America’s over-stored suburbs and the continued gains of online shopping, has all the makings of a disaster. The spillover will likely flow far and wide across the U.S. economy.
Despite broad consensus about coal’s bleak future, a years-long effort to diversify the economy of this hard-hit region away from mining is stumbling, with Obama-era jobs retraining classes undersubscribed and future programs at risk under President Donald Trump’s proposed 2018 budget.
.Like his first trip abroad, Trump’s Asia trip was unsuccessful and marred by some significant mistakes. The president returns home this week with nothing to show for his effort.
Xi refused to even let Obama deplane with dignity. O and party were deliberately insulted and shuffled out the back door of AF1 like cargo.Heracleum Persicum wrote:.
Trump’s Unsuccessful Asia Trip
.Like his first trip abroad, Trump’s Asia trip was unsuccessful and marred by some significant mistakes. The president returns home this week with nothing to show for his effort.
Nonc Hilaire wrote:Heracleum Persicum wrote:.
Trump’s Unsuccessful Asia Trip
.Like his first trip abroad, Trump’s Asia trip was unsuccessful and marred by some significant mistakes. The president returns home this week with nothing to show for his effort.
Xi refused to even let Obama deplane with dignity. O and party were deliberately insulted and shuffled out the back door of AF1 like cargo.
Xi gave Trump a banquet, a public address and personal tour of the Forbidden City. SK publicly called Trump the leader of the free world.
I would call that the biggest success in at least nine years.
.
Almost all of the growth in top American earners has come from just three economic sectors: professional services, finance and insurance, and health care, groups that tend to benefit from regulatory barriers that shelter them from competition.
The groups that have contributed the most people to the 1 percent since 1980 are : physicians; executives, managers, sales supervisors, and analysts working in the financial sectors; and professional and legal service industry executives, managers, lawyers, consultants and sales representatives.
Without changes in these largely domestic services industries — finance, health care, the law — the United States would look like Canada or Germany in terms of its top income shares.
they are wage slavery states like the rest of the modern west and america, paying off the never ending socialist tax burden.Mr. Perfect wrote:None of those countries can blame tax cuts for the rich or defense spending. I wonder what is to blame.
Nonc Hilaire wrote:Look at Italy. Time for Italeave?
But Citi’s Chief Financial Officer John Gerspach told the trade reporters he thought that some bigger banks — like, say, Citigroup — should get taken care of in the bill as well. He wanted Congress to loosen rules around how the bank could go about lending and investing. The specific mechanism to do that was to fiddle with what’s known as the supplementary leverage ratio, or SLR, a key capital requirement for the nation’s largest banks. This simple ratio sets how much equity banks must carry compared to total assets like loans.
S.2155 did, at the time, weaken the leverage ratio, but only for so-called custodial banks, which do not primarily make loans but instead safeguard assets for rich individuals and companies like mutual funds. As written, the measure would have assisted just two U.S. banks, State Street and Bank of New York Mellon. This offended Gerspach. “We obviously don’t think that is fair, so we would like to see that be altered,” he told reporters.
THE future is going to be very bad.
It’s not a question of if or even when, but how. That’s the view of Australian economist John Adams, who says “economic armageddon” awaits us — we just don’t know what particular version it will take.
throw your dice now, all paths lead to hell, choose wisely!Scenario 1: Debt deflationary recession or depression
Governments and central banks tighten monetary policy by raising interest rates and withdrawing monetary stimulus to a level that produces a critical event of a major corporation or financial institution declaring financial difficulties
Scenario 2: Sovereign debt crisis
A sovereign debt crisis occurs when the debts of an individual government (whether national, provincial or local) become too large that they are unserviceable resulting in the government either:
Scenario 3: Local currency crisis
A localised currency crisis occurs when an indebted country with significant amounts of received foreign direct investment and international debts lose the confidence of international investors to either generate expected returns or to meet their international debt obligations with currency that investors have confidence in.
Scenario 4: Local runaway inflation and potentially leading to hyperinflation
Governments allow inflationary pressure to build within an economy through the excessive creation of money and credit and as a result all prices across the economy generally rise
Scenario 5: Stagflation
Stagflation occurs when an economy experiences low rates of economic growth while simultaneously experiencing accelerating rates of inflation.
Scenario 6: Global currency crisis
A global currency crisis occurs when international confidence in a major currency such as the US dollar collapses, which results in breakdown in the international monetary system that prevents the settlement of cross-border financial and trade
Anything is better than what we have. Normally I'm not a burn the whole thing down kind of guy but in this case that is what we need.Parodite wrote:j02zh6uHWkk
Sounds sensible. Mr. P?
Too extreme and complex. Growth would vanish. Better to enforce Basel Accords and seperate investment banking from commercial banking. Cut fractional reserve banking back from 10/1 to 5/1. If we can't do the simple thing with the laws we have we certainly cannot create a whole new system, but changing a parameter is not such a violent change.Parodite wrote:j02zh6uHWkk
Sounds sensible. Mr. P?
Separating investment from commercial banking would be a good start.Nonc Hilaire wrote:Too extreme and complex. Growth would vanish. Better to enforce Basel Accords and separate investment banking from commercial banking. Cut fractional reserve banking back from 10/1 to 5/1. If we can't do the simple thing with the laws we have we certainly cannot create a whole new system, but changing a parameter is not such a violent change.Parodite wrote:j02zh6uHWkk
Sounds sensible. Mr. P?
Islamic banking laws work by forbidding interest entirely and using equity instead. That is drastic, but it is an existing and functional system.
Typhoon wrote:Separating investment from commercial banking would be a good start.
It would prevent much of the "privatizing the profits and socializing the losses" phenomena that poisons the market creating unnecessarily high-risk boom-bust situations. Also here I wonder, what keeps such a simple, common sense, fair and obviously beneficial requirement to be instated by law?Also, (re)privatize investment banking and require that the principal owners be "all in" in terms of their personal capital.
That's a good point. What I did like was the idea to allow democracy have a say on how the financial industry is organized and operates. Right now it is mostly shielded from public discourse, left to deregulated globalist forces and experts, decision makers who never need to explain in simple language to the average voter what they are doing and why. The Real Dark Web.The Sovereign Bank proposal strikes me as naive.
Private banks could not longer make loans. Only the state "Sovereign Bank" could do so. Not unlike the Soviet system. This is a prescription for inevitable abuse by insiders.
Free market. But it's not that magic.noddy wrote:any system left neglected for a long period of time will end up the same way - im not particularly convinced their is some magic arrangement which changes things.
Good start at what?Typhoon wrote: Separating investment from commercial banking would be a good start.