Global Communications and The Net Neutrality Debate
Written by Elliott Morss, Morss Global Finance
Introduction
We have recently heard a lot about 'net neutrality' and what the FCC will do next. The issue is important. But to understand it, some background on how information was and now is transferred globally is in order.
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What We Read Today 04 August 2014
Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary "reading list" which will include very brief summaries (and sometimes longer ones) of why each item has gotten our attention. Suggestions from readers for "reading list" items are gratefully reviewed, although sometimes space limits the number included.
- Downpour Slows Rescue Work After China Earthquake Kills 381 (Zhang Dingmin, Bloomberg) A magnitude 6.5 earthquake killed at least 381 people in southwest China around the city of Zhaotong in the southwestern province of Yunnan. The quake injured about 1,800 and destroyed about 12,000 homes according to reports from the Xinhua news agency. Yunnan Province is a beautiful mountainous region of China. But as residents there and in neighboring Sichuan Province repeatedly learn there are dangers living in the eastern shadow of the Himalayas. Read an interesting note by Michael Palin about Yunnan.
Oil-and-Gas Fraud Charges Against Houston-Based Company and CEO
from the Securities and Exchange Commission
The Securities and Exchange Commission today announced charges against a Houston-based oil-and-gas exploration and production company and its CEO for making fraudulent claims about the company's oil reserves. An SEC enforcement investigation found that Houston American Energy Corp. and John F. Terwilliger fraudulently claimed that a Colombian exploration concession in which Houston American only owned a fractional interest held between 1 billion and 4 billion barrels of oil reserves, and that the reserves were worth more than $100 per share to Houston American's investors.
Market Commentary: Averages Melt Up With HFT Algo Computers Help
Closing Market Commentary For 08-04-2014
I didn't think it was possible for volume to fall to zero, but around 2:30 today it did in some of the major indices - at least I couldn't measure it. The HFT algo computers are pushing the market higher as they always do on low volume days.
The markets closed on a high note and tomorrow (Tuesday up-day) should be interesting fulfilling a normal recovery after a couple of down days.
July 2014 Senior Loan Officer Opinion Survey Shows Continued Easing of Lending Standards
from the Federal Reserve
The July 2014 Senior Loan Officer Opinion Survey on Bank Lending Practices addressed changes in the standards and terms on, and demand for, bank loans to businesses and households over the past three months. This summary is based on the responses from 75 domestic banks and 23 U.S. branches and agencies of foreign banks. The July survey results showed a continued easing of lending standards and terms for many types of loan categories amid a broad-based pickup in loan demand. Domestic banks generally continued to ease their lending standards and various terms for commercial and industrial (C&I) loans.[2]. In contrast, foreign banks reported little change in standards and in most of the surveyed terms for C&I loans on net.
A $1,000 Increase in Home Prices Keeps More than 200,000 Households Out of the Market
from National Association of Home Builders (NAHB)
Each $1,000 increase in the cost of a new median-priced home price forces 206,000 prospective buyers out of the marketplace. The number of households affected varies across states and metro areas and largely depends on their population, income distribution and new home prices.
Market Commentary: Markets In Flat Status, Volume Continues To Be anemic
Midday Market Commentary For 08-04-2014
By noon the market is relatively quiet except for a small dippy-do around 11 am. The trend is fractionally downward and this should be what the session should look like. The rest of the week is in doubt as to direction, but the positives outweigh the negatives at this point.
Financial Stability Monitoring
by Tobias Adrian, Daniel Covitz, and Nellie Liang - Liberty Street Economics, Federal Reserve Bank of New York
In a recently released New York Fed staff report, we present a forward-looking monitoring program to identify and track time-varying sources of systemic risk. Our program distinguishes between shocks, which are difficult to prevent, and the vulnerabilities that amplify shocks, which can be addressed. Drawing on a substantial body of research, we identify leverage, maturity transformation, interconnectedness, complexity, and the pricing of risk as the primary vulnerabilities in the financial system. The monitoring program tracks these vulnerabilities in four sectors of the economy: asset markets, the banking sector, shadow banking, and the nonfinancial sector. The framework also highlights the policy trade-off between reducing systemic risk and raising the cost of financial intermediation by taking pre-emptive actions to reduce vulnerabilities.
Teens Gain Fewer Summer Jobs
SPRING HIRING SURGE MAY HAVE STUNTED SUMMER JOB PROSPECTS FOR 16- TO 19-YEAR-OLDS
from Challenger Gray and Christmas
More teenagers found jobs in July compared to a year ago, but it was not enough to lift the overall summer hiring total above last year's levels. Employment among the nation's 16- to 19-year-olds increased by 419,000 in July, a 16 percent improvement from the 361,000 teens hired in July 2013.
It is happening GMO corn no longer resists insects
Farmers in Brazil say GMO Bt corn seeds from Monsanto Dow Chemical DuPont and Syngenta do not resist pests namely the corn leafworm. The farmers want the companies to reimburse them for the 3 rounds of pesticides sprayed on their GMO crops.
Blogger Sentiment Overwhelmingly Bearish in August 2014
Econintersect: The latest Blogger Sentiment Poll released 04 August 2014 byTicker Senseshows bloggers have are moderately bearish in their view of the markets - this is worse than the poll results one month ago.
This blogger poll is noisy.
July 2014 Conference Board Employment Index Continues to Forecast Strengthening Employment
Written by Steven Hansen
The Conference Board's Employment Trends Index for July 2014 - which forecasts employment for the next 6 months - again strengthened. The rate of year-over-year growth improved, and this was the fifth month in a row of improvement in the three month rolling average rate of growth.
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Market Commentary: Markets Open Cautiously Higher, Trending Sideways On Low Volume
Opening Market Commentary For 08-04-2014
Premarkets were trending fractionally higher as might be expected after last weeks moderate falloff. Markets opened up +025% and trended sideways on low to anemic volume as investors are unsure what to do. Is the market going to selloff, is the 'correction' over with or what. The big gamble awaits.
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Insider Trading 01 August 2014: Microsoft, Twitter Biggest Sellers This Week
by Asif Suria
Insider buying declined last week with insiders buying $60.16 million of stock compared to $88.99 million in the week prior. Selling on the other hand more than doubled with insiders selling $1.34 billion of stock last week compared to $549.37 million in the week prior. It was interesting to see this increase in insider selling against the backdrop of a 2.7% decline in the S&P 500, its biggest single week decline since 2012.
Sell/Buy Ratio: The insider Sell/Buy ratio is calculated by dividing the total insider sales in a given week by total insider purchases that week. The adjusted ratio for last week went up to 22.36. In other words, insiders sold more than 22 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 6.17
South Americans Are Most Likely to Have Plastic Surgery
from Felix Richter, Statista.com
by Niall McCarthy
According to an ISAPS survey, plastic surgery procedures are most popular in South America.
The Third Man(date)
Age of Wisdom, Age of Foolishness (37)
Written by Adam Whitehead, KeySignals.com
'Coming Soon, to a Cinema Near You.'
The report entitled MIT Engineers More QE (December 12th2012)[i] explained how Stanley Fischer's MIT protegees were leading the 'change that we can believe in' in global central banking.
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Top Financial Experts Say World War 3 Is Coming, Unless We Stop It
by Washington's Blog, Washington's Blog
Nouriel Roubini, Kyle Bass, Hugo Salinas Price, Charles Nenner, James Dines, Jim Rogers, David Stockman, Marc Faber, Jim Rickards, Paul Craig Roberts, Martin Armstrong, Larry Edelson, Gerald Celente and Others Warn of Wider War
Paul Craig Roberts - former Assistant Secretary of the Treasury under President Reagan, former editor of the Wall Street Journal, listed by Who's Who in America as one of the 1,000 most influential political thinkers in the world, PhD economist - wrote an article yesterday about the build up of hostilities between the U.S. and Russia titled, simply: "War Is Coming".
U.S. Personal Savings Rate History
Extra Edition Chart of the Week 02 August 2014
Written by John O'Donnell, Online Trading Academy
The personal savings rate in the U.S. has varied from near zero (actually less than zero briefly during the Great Depression) to a high near 13%, with exception of spikes much higher during the two world wars. The average over the period 1900-2013 has been 8.5%. Since 1985, the exception of 1992, the savings rate has been below the 114 year average and currently is slightly below 5%.
Personal savingss are discussed in video following the Read more >> jump.
Documentary of the Week: Which Way Next?
Econintersect: Carl Bass, president & CEO of Autodesk, a leader in 3D design, engineering and entertainment software joined Singularity University VP for Academics and Innovation Vivek Wadhwa on Tuesday, 24 January 2012, in a discussion of how advances in artificial intelligence, robotics and digital manufacturing will enable us to design, print and manufacture complex products in our own homes. The discussion discusses how exponential advancing technologies will provide major new opportunities, but also will disrupt existing industries and threaten jobs around the world.
Google Is Among the Biggest Lobbying Spenders in the U.S.
by Felix Richter, Statista.com
Google, the company who's informal motto is "don't be evil", has grown to become one of the largest lobbying spenders in the United States.
Infographic of the Day: How the Apollo Moon Landings Worked
The science showing that flight to the moon was possible was worked out in the 17th century, but it took until the mid-20th century for engineering and technology to advance enough to make it happen.
