Mainstream News

Cameron Announces U.K. Plans for Debut Issue of Islamic Gilts

"Prime Minister David Cameron said the U.K. plans to become the first country outside the Muslim world to sell a Shariah-compliant bond as soon as next year. Cameron laid out his government’s intentions in a speech to the World Islamic Economic Forum in London. The Islamic bonds, known as sukuk, would be valued at about 200 million pounds ($320 million). Cameron also said London Stock Exchange Group Plc (LSE) is creating an Islamic market index. Islamic bonds are typically backed by assets or cash flow because of the religion’s ban on interest. About 60 percent of the world’s sukuk is issued from Malaysia, according to Malaysia International Islamic Financial Centre." Continue reading →

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In Fed and Out, Many Now Think Inflation Helps

"Some economists say more inflation is just what the American economy needs to escape from a half-decade of sluggish growth and high unemployment. Economists, including Janet Yellen, President Obama’s nominee to lead the Fed starting next year, have long argued that a little inflation is particularly valuable when the economy is weak. The school board in Anchorage, Alaska, for example, is counting on inflation to keep a lid on teachers’ wages. Retailers including Costco and Walmart are hoping for higher inflation to increase profits. The federal government expects inflation to ease the burden of its debts. Yet by one measure, inflation rose at an annual pace of 1.2 percent in August." Continue reading →

Continue ReadingIn Fed and Out, Many Now Think Inflation Helps

Dwolla Credit launched as competitor to PayPal’s Bill Me Later

"Pay instantly and get paid instantly. It’s just how payments in the modern world should work. No more loading your account, no more typing in your card information. Simple and quick checkouts are just one benefit to building a new network, working with great developers and great retailers is another. On Dwolla’s network, there are no plastic cards, no terminals, no complicated reseller agreements, and no card data that could be left behind. Just the internet…simple. Credit, is now a feature. Dwolla Credit, provided by our friends at Comenity Capital bank, owned by Alliance Data (NYSE: ADS), is making this all possible. I’m exceptionally proud of the work both of our teams have done." Continue reading →

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FINTRAC collecting too much info on innocent Canadians: privacy watchdog

"By law, Canadian banks, casinos and thousands of other businesses are required to report all financial transactions over $10,000, and any movement of money they suspect may be linked to terrorism or laundering the proceeds of crime. But in a special report to Parliament today, Privacy Commissioner Jennifer Stoddart complains that an investigation of the Financial Transactions Reports Analysis Centre, known as FINTRAC, found found everyday financial transactions of ordinary Canadians — things such as down payments for homes and cars, and wire transfers from families overseas to their children studying here. FINTRAC has amassed over 165 million reports." Continue reading →

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SEC Proposes Crowdfunding Rules, But…

"To produce an offering disclosure document, enlist a funding portal, run background checks and file an annual report with the SEC year after year might well cost upwards of $100,000. In order for equity crowdfunding to the public to serve as a useful tool, as intended, Congress needs to amend the JOBS Act to make it less onerous and costly. Unfortunately, the SEC’s hands are tied since the JOBS Act itself creates most of the restrictions in the proposed rule. The SEC, for its part, did not tighten restrictions from the JOBS Act. This might be signal that even the SEC thinks the JOBS Act is too restrictive. Time will tell." Continue reading →

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Why McDonald’s Killed the Dollar Menu—in 1 Chart

"The sad news that McDonald's is ending its Dollar Menu after eleven years reflects a simple truth: You can't make any money selling burgers for $1, any more. The fact that the Dollar Menu has lasted this long might make you think fast-food prices have lagged behind other items, in real terms. But the price of beef and other staples has been turbulent. With some help from the inflation pros at BLS, I graphed this chart of 'fast food' inflation (technically 'limited service meals and snacks') versus all food for home consumption and core inflation minus housing, which is different from the more commonly used core inflation, but subtracts housing's recent boom." Continue reading →

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Spain’s jobless now relying on pensioners to survive

"After a career spent repairing trains, Francisco Marcos Gallego once thought he and his wife would end their days in comfort. Instead they are struggling to support their unemployed son and his children. The couple must use their combined monthly pension of 1,300 euros ($1,760) to help feed their son Miguel, 49, who has been out of full time work since 2009, and the teenaged children who still live with him. Still suffering the effects of the economic slump triggered by the collapse of a property boom in 2008, more and more Spanish families are relying on their retired parents to survive as their unemployment checks run out and mortgage bills pile up." Continue reading →

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Plans for Political Union Unravel in Europe

"Advocates of tighter integration believe that the euro zone needs to go further by borrowing elements from the American system of federalism. Many proposals reflect a belief that the euro zone needs to partially mimic the U.S., where the dollar works well across all states partly because of budgets, bonds, financial oversight and depositor protection at the national level. Over the past year, however, the political winds have shifted. Interviews with more than a dozen officials across Europe reveal how plans for deeper integration have run aground as financial markets have calmed and mistrust has simmered between power centers including Berlin, Brussels and Paris." Continue reading →

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Alan Greenspan Sees ‘Double Digit’ Inflation Ahead

"Alan Greenspan, the former Federal Reserve chairman, has largely avoided public comment on the Fed’s efforts to stimulate the economy, but he has said enough to make it clear that he is not a fan. It’s been a long time since anyone accurately predicted higher inflation. Instead, inflation has sagged to the lowest levels on record. But here’s why Mr. Greenspan is worried. Each time the Fed buys a bond, it pays the bank that sells the bond by creating money and putting it into an account that the bank keeps at the Fed. Mr. Greenspan’s inflation prediction is based on his estimation of the consequences as that money flows out into the economy." Continue reading →

Continue ReadingAlan Greenspan Sees ‘Double Digit’ Inflation Ahead