Yearly Archives: 2013

Diamonds, Advertising, DeBeers and Sex

"Starting in 1935 in Indiana, U.S. states started altering their laws to abolish the action for breach of promise. Women responded, by Brinig's account, by requiring a down payment from their fiancees in the form of an expensive ring—which forfeited if the fiancee terminated the engagement. Think of it as a performance bond. Brinig looked at data on diamond imports and concluded that the demand for diamonds started to rise about 1935, four years before the Ayer marketing campaign that is usually given credit for creating the demand for engagement rings. The evidence also suggested that the custom began declining once premarital sex became widely accepted." Continue reading →

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IMF’s Lagarde Pleads: Fed Tapering Will Be ‘Arduous’ on Global Economy

"The head of the International Monetary Fund cautioned the world's major central banks Friday not to withdraw their unconventional support for weak economies too soon, according to numerous wire service reports. IMF Managing Director Christine Lagarde said stimulative policies are still needed in key regions, especially Europe and Japan, which have struggled with prolonged weakness. 'Even if managed well,' Lagarde said of a central bank’s exit from easy-money policies, that could still present an 'arduous obstacle course' for other countries. Lagarde said what’s needed is greater policy coordination and cooperation for the sake of the entire globe." Continue reading →

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Moody’s considers downgrading top US banks

"Moody's has warned that it could cut the credit ratings of the six biggest US banks, saying the federal government may be less likely to bail them out if they got into trouble in the future. Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo could be downgraded, the rating agency said on Thursday. The review by the second-largest rating agency in terms of market share follows a similar statement from rival Standard & Poor's in June, and comes as governments are reshaping the regulation of banking and trying to prevent a repeat of the bailouts of the credit crisis era. Lower credit ratings could raise the cost of capital for bank holding companies." Continue reading →

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Gold’s rebound: Why it’s believable this time

"Kelly Teoh, market strategist at IG Markets who believes the upside in gold has legs, said investors are moving into the precious metal because Asian currencies are under tremendous pressure. 'If you look at all the various asset classes, the U.S. equities are at all-time highs, Asian ex-Japan equities are lagging, commodities is the only asset class that's underperformed so I see value in that,' she added. Barclays' chief technical strategist Dhiren Sarin says gold has either already formed, or is in the process, of establishing a 'very strong base.'" Continue reading →

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Swap your gold shares for coins, ETF firm offers

"Exchange traded funds have mushroomed in recent years as a highly popular way for private investors to own gold. Real holdings of gold, stored in bank vaults, are represented by shares which trade daily on the London Stock Exchange. This makes it possible for investors to buy and sell cheaply – and in relatively small quantities. Investors can choose to receive Britannias or Sovereigns, at a cost of 4.5pc per transaction. Britannias are made from one troy ounce and minted from 22 carat gold, while Sovereigns weigh just under a quarter a troy ounce. There is no tax to pay on the switch, ETFS says." Continue reading →

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Argentina Just Lost Huge To A Bunch Of Hedge Fund Creditors

"For years the country has been trying to avoid paying a bunch of 'vulture' hedge fund managers that refused to take a 70% haircut on Argentine bonds like every other investor. This has resulted in some wacky news items — Paul Singer getting the government of Ghana to impound an Argentine naval ship last October, President Cristina Fernandez de Kirchner flying commercial to see the Pope so her jet isn't taken — you get the idea. Now it's (almost) come to a head. A New York Judge fully rejected Argentina's appeal of a decision made last year — a decision that would've had it pay Singer and company in full." Continue reading →

Continue ReadingArgentina Just Lost Huge To A Bunch Of Hedge Fund Creditors

Brazilian Central Bank Launches Intervention Program To Stop The Bleeding

"The new intervention program announced by the BCB Thursday sees the central bank offering $500 million of dollar swaps in the currency derivatives market on a daily basis for the rest of 2013, and $1 billion of FX spot lines on Fridays. Essentially, the BCB is taking a big short position in the U.S. dollar. The BCB is conducting the majority of the real-bolstering intervention in the derivatives market as opposed to the spot market because under the latter scenario, the central bank has to burn through the U.S. dollar component of its foreign reserves in order to prop up the currency, whereas with swaps, foreign reserves don't come into play." Continue reading →

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125 shopping days left: Retailers start Xmas deals

"Even before the school bells are ringing for many families, retailers are sounding sleigh bells. Yes, that's right. With 120-plus shopping days left, stores are already talking up their holiday offers. You might not be feeling the time pressure yet, but retailers are. Success in the fourth quarter is often key to annual performance, and in tough economic times the competition for customer dollars is fierce, said Dave Cheatham, managing principal of Velocity Retail Group. 'Retailers are determined not to be left on the sidelines,' he said. 'They're reinventing the rules on how to do holiday shopping.'" Continue reading →

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Internet Giants Got Millions From Taxpayers to Cover PRISM Spying Costs

"Internet giants like Google and Yahoo received millions of dollars from the NSA to cover their surveillance under the PRISM program. These payments occurred after a federal court ruled that surveillance requests the companies handled under the PRISM program were unconstitutional. The document also shows the NSA was anxious to get certifications from the FISA Court to authorize surveillance beyond the possible expiration of the law that authorized that surveillance. The law was set to expire on December 31, 2012, but the NSA received authorizations under that law to continue its surveillance until September 23, 2013." Continue reading →

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The Economic Philosopher’s Outcast: Mises

"SS Gestapo Chief Henrich Himmler's agents sped through the streets of Vienna on an early morning, March 11, 1938, to capture and eliminate Nazi Germany's enemies. One of his prime targets lived in a middle-class Jewish neighborhood at 28 Weihoffen St. Apartment 7. Ludwig Von Mises, a 58-year-old political philosopher, was Jewish and defenseless. Hitler deemed this man an enemy of the state and one of the top targets to be seized during the Nazi takeover of Austria. Fleeing from the city the day before, Professor Mises narrowly escaped to Switzerland. Despite attempts on his life, Mises spent the 92 years of his life fighting totalitarianism." Continue reading →

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