joi, 25 iulie 2013

Seth's Blog : Your permanent record

 

Your permanent record

"I'm going to record this conversation, okay?"

How Nixonian! The idea of being on the record is a scary one. It's the hot button of, "This is added to your school transcript." Forever, it seems, you will be marked by what you did or said, a pristine record, besmirched.

Today, of course, the post-Nixon reality exists. So much is on your permanent record that we've all been besmirched. That video response you posted, that comment, that update. The fact that you didn't actually work on that team your resume claims you did. The customer who left your restaurant angry and posted a negative review on one site or another.

In a heartbeat we went from special, gap-free makeup for TV stars on HD to online candid photos of every celebrity, without makeup.

If you don't know how to speak with confidence on tape, you've now entered a culture where you will never be able to speak. Because it's all on tape, it's all online, it's all on your permanent record.

Everyone has failed, everyone has misspoken, everyone has meant well but done the wrong thing. Your favorite restaurants, cafes and books have all gotten a one-star review along the way. No brand is perfect, no individual can pretend to be either.

Perfect can't possibly be the goal, we're left with generous, important and human instead.

       

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miercuri, 24 iulie 2013

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Obama's HAMP Program a Stunning Success

Posted: 24 Jul 2013 11:37 AM PDT

Obama had lofty goals of helping 4 million Americans keep their homes with his Home Affordable Mortgage Program (HAMP).

Here are some quick facts:

  • HAMP modified 1.2 million mortgages (70% less than the target)
  • 306,000 re-defaults
  • Another 88,000 at risk
  • The re-default rate is an alarming 30%
  • The re-default rate of those in since 2009 is 46%

CNNMoney has additional details in Watchdog: Borrowers in Obama housing program re-defaulting.
Borrowers who received help through the government's main foreclosure prevention program are re-defaulting on their mortgages at alarming rates, a federal watchdog said in a report released Wednesday.

Nearly 1.2 million mortgage modifications have been completed since the Home Affordable Modification Program (HAMP) was first launched four years ago. Yet more than 306,000 borrowers have re-defaulted on their loans and more than 88,000 are at risk of following suit, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) found in its quarterly report to Congress.

In addition, the watchdog found that the longer a homeowner stays in the HAMP modification program, the more likely they are to default. Those who have been in the program since 2009, are re-defaulting at a rate of 46%, the inspector general found.
Stunning Success

HAMP is certainly a failure compared to stated goals. However, as government programs go, it's easy to make a case that HAMP was a tremendous success.

Here's why. "As part of the Troubled Asset Relief Program, Treasury allocated $19.1 billion to the HAMP program. So far, it has spent $4.4 billion".

The typical government program wastes far more than initially allocated. This government program only wasted $4.4 billion out of a projected waste of $19.1 billion.

It does not get much better than this!

Unfortunately, there is still a big push to waste more money.

Christy Romero, the head of SIGTARP says "Treasury pulled out all the stops for the banks, they should do the same for homeowners".

This same "two wrongs make a right" genius also says "Treasury needs to research why so many borrowers are dropping out of the program."

Really?

What's to research? People are underwater in their homes (still), without a job, or struggling in minimum wage part-time jobs. But hey, give a bureaucrat money to waste and they will. 

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Unions and Fundamental Freedoms: Two Upcoming U.S. Supreme Court Cases

Posted: 24 Jul 2013 10:04 AM PDT

What follows is a guest post regarding two important union cases that the US Supreme Court will hear.

Unions and Fundamental Freedoms by David. A. Bego

The U. S. Supreme Court has agreed to hear two cases in the next year which will determine whether persons will be protected in their exercise of the fundamental right to either choose whether to engage in union representation or to abstain from such representation, and to make such decision absent intimidation from either the union or their employer via the secret ballot election — the same process we use to elect our local, state and federal government officials. Interestingly, both cases stem from the President's attempt to provide political payback to his allies in Big Labor through the Rogue NLRB.

In the first case, the U.S. Supreme Court will decide if the President acted unconstitutionally when he made several recess appointments to the agency charged with oversight of labor-management disputes, the National Labor Relations Board. The lower courts, culminating in the U.S. Third Court of Appeals both found the appointments unconstitutional (see Supreme Court to Consider Obama Recess Appointments and Appeals Court Nixed Obama's Recess Appointments). This case not only has important implications concerning the further shredding of our constitution  through ignoring the tenant of the separation of powers of the branches of government by appointing his nominees without review and agreement by the legislative branch.

In the case of the NLRB, the Obama appointees seek to achieve Card Check through Regulation vs. Legislation. Simply put, the goal is to eliminate employees' rights to a secret ballot election and replace it with Card Check as the means for employees to determine if they wish union representation. If you listened to the Administration's and Big Labor's rhetoric, what could be more simple and fair? Unfortunately, it is a process of coercion and intimidation as chronicled in The Devil at Our Doorstep. A process aptly named Death by a Thousand Cuts, which forces employers and employees to capitulate and be subjected to the terms of the so called Neutrality Agreement through ruthless Corporate Campaigns. The so-called "neutrality agreement" is hardly neutral and subjects both the employees and the employer to labor intimidation.

The second case involves a question of the validity of Big Labor's sacred cow, the aforementioned Neutrality Agreement (see BNA – Supreme Court Agrees to Review LMRA Case Involving Section 302, Neutrality Agreement). To appreciate this case and its relevance, one must understand why this agreement is so important to big labor. As documented in previous blogs, unions have been on a steady decline since 1947 when Congress, following more than a decade of union corruption, passed the Taft-Hartley Act. Of the many important provisions of the Act, perhaps none was more so than the guarantee of the secret ballot election which, for all intents and purposes, eliminated card check.
Since its peak prior to passage of the Taft-Hartley Act, union membership has dropped from approximately 35-40% of the workforce to a low of 11.3% today. Statistics gathered by the federal Bureau of Labor Statistics, included a drop of approximately 400,000 members in the last year alone. Big Labor, realizing its imminent demise, understands it must reinstate card check to survive and is relying on the President and his rogue NLRB to allow them to exploit a little known and hidden clause in the Taft-Hartley Act that allows unions and employers to mutually agree to representation through card check. Unfortunately, it is very rarely an agreement achieved through mutual consent. It is predominantly achieved by Big Labor through outright intimidation of employers and employees. What is interesting about this particular case is that it has been brought by an employee disgusted with the intimidation and the fact he believes his rights to a secret ballot election and protection of privacy have been violated.

One thing certain about these cases is that the justices of the Supreme Court will receive a tremendous amount of pressure from the Administration and its Big Labor buddies to overturn the decisions of the lower courts. The Gasping Dinosaurs, already headed toward extinction, understand all to well that if these decisions are upheld it will be the end of Big Labor as we know it in this country (see If ruling goes Against Labor Union, Organizing Could Get Even Harder). Additionally, the President and his party know all to well they need Big Labor's financial and ground support to continue to win elections, as well as increase their grip on and expand an already oversized government.

Even more frightening for the future of the United States is what could occur if these decisions are overturned. If they are, the current administration will feel empowered to continue to appoint radical people to high positions, not just in the NLRB, but all areas of government. If they can eliminate the secret ballot election for union recognition and trample on the constitution to appoint government officials how long will it be before they expand these programs to every corner of the government? Can you imagine no secret ballot elections to determine our government officials and instead all being appointed by the President?  These are landmark cases.

About Bego

David A. Bego is the President and CEO of EMS, an industry leader in the field of environmental workplace maintenance, employing nearly 5,000 workers in thirty-three states.

Bego is the author of "The Devil at My Doorstep," and the just released sequel, "The Devil at Our Doorstep," based on his experiences fighting back against one of the most powerful unions in existence today.

Mish comment: This article originally appeared on UnionWatch, a site to which I also contribute.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Gold Backwardation Conspiracy Nonsense

Posted: 24 Jul 2013 01:01 AM PDT

Business Insider says "Traders Are Talking About A Gold Conspiracy Theory And There's Evidence To Back It Up"
No discussion about gold is complete without a good conspiracy theory. While most theories are easily dismissed, some stay around for a while due to a confluence of circumstantial evidence surrounding it. Wall Street veteran Art Cashin addresses one such theory in this morning's Cashin's Comments.

From Cashin:

All That Glitters Is Not Arbitrage – Monday, spot gold spiked up $45 and the media pundits pointed to things from China to the FOMC. While all the cited may have been factors, veteran traders saw the bulk of the move resting in a conspiracy story.

In my mid-day email to friends I had noted this:

Gold soars as NYT story on metal warehouses fans flames of conspiracy theorists that gold warehouse stores have been "lent" out. That theory also aided by backwardation (spot price far above near future).....

Unfortunately, we are not sophisticated enough to answer these questions.  But email us at moneygame@businessinsider.com if you can.
Email is on the Way

Consider what follows as my email to Business Insider and Cashin.

People like conspiracy theories for two reasons:

  1. Conspiracy theories are sexy and fun to discuss
  2. Traders want to blame someone else for their poor trades.

Simply put, if gold goes up, it's because it should (and the traders are brilliant for understanding that). If gold gold down, it must be a conspiracy (because the traders cannot possibly be wrong).

Investigating Backwardation

My friend Nick at Sharelynx Gold emailed me earlier today regarding the alleged backwardation in gold.

Nick writes....
Hello Mish

The attached chart shows gold's current spread band of all the active futures vs the spot price of gold. Shown in the top window are the active futures. Shown in the bottom window is the Last/Near Future spread. (this needs to go below zero for a full inversion)

Gold Futures Spread



click on any chart for sharper image

Gold Chat

Bron at Gold Chat posts the following amusing set of charts that may be easier to understand.

Gold Futures Spread



Oil Futures Spread



Now That's Backwardation!

Recall the definition of backwardation: Current price above future delivery price.

There are many reasons this can happen with commodities, but the typical explanations are: temporary short-term supply shortage, expected future supply, or expected falling demand.

Supposedly this can never happen with gold because "gold is money".

Leaving aside the philosophical question as to whether or not gold is money, presume for a moment that it is.

Using the above oil chart as a basis (assuming the gold chart were the same), backwardation implies that someone could borrow money today and pay it back in 2018 for 80 cents. Logically, that shouldn't happen.

Acting Man Chimes In

My friend Pater Tenebrarun at the Acting Man Blog (see his recent post Gold and Gold Stocks – More Signs of Life) chimed in with this email comment:
There is no persistent and deep backwardation in gold, so it is definitely not something to get alarmed over just yet. However, it is still notable that the nearby futures repeatedly slip into slight backwardation versus spot. Moreover, the gold forward rate has recently turned negative. That means that people are now paying more interest for gold in a gold-dollar swap than for dollars. That happens only rarely. Of course all of this happens mainly because interest rates are so low. If interest rates were higher, then it would really be worth getting exercised over. Still, GOFO only rarely turns negative and it often marks a low when that happens.
Philosophical Question

The philosophical question regarding whether or not "gold is money" is an interesting one.

If indeed "gold is money" (not an ordinary commodity like corn, copper, or oil), then severe backwardation implies skepticism as to whether future gold contracts will really be delivered.

Thus, backwardation claims fuel all sorts of theories about gold shortages, gold leasing, and price suppression.

However, the charts provided by Nick at Sharelynx and Bron at Gold Chat show that claims of backwardation are essentially nonsense.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Damn Cool Pics

Damn Cool Pics


Nobody in Boston Wants Free Money [Video]

Posted: 24 Jul 2013 06:17 PM PDT



In their latest video, the guys Boston-based sketch comedy group Fatawesome (previously) try to hand out free money on the streets on their home town, but apparently, no one wants to take it.

Movie Stars and Their Body Doubles

Posted: 24 Jul 2013 04:16 PM PDT

Transgender Teenage Couple in Love

Posted: 24 Jul 2013 04:04 PM PDT

What you won't believe is that Arin was born a girl called Emerald and Katie was born a boy named Luke. Both youngsters have had gender reassignment surgery and met in a transgender support group.















Highest-Paid Celebrities Under the Age of 30

Posted: 24 Jul 2013 10:32 AM PDT

Top-earning celebrity under the age of 30 according to the Forbes.

Taylor Lautner, $22 million.



Kristen Stewart, $22 million.



Adele, $25 million.



Jennifer Lawrence, $26 million.



Katy Perry, $39 million.



Rihanna, $43 million.



Calvin Harris, $46 million.



Taylor Swift, $55 million.



Justin Bieber, $58 million.



Lady Gaga tops the list with $80 million.

Will the Xbox One Be Your Overly Attached Girlfriend? [Infographic]

Posted: 24 Jul 2013 08:54 AM PDT

She loves you, she loves you not… What would be the answer if you asked this to your Xbox One? Of course she loves you. Find out why in our latest infographic.

Click on Image to Enlarge.

Via: kensington



A Better Bargain

 

 

Hello everybody --

The basic bargain of this country says that if you work hard, you can get ahead -- you can build a secure life for your family, and know that your kids will do even better someday.

But for more than a decade, that bargain has frayed, and a devastating recession made it worse.

Over the past four and a half years, America has fought its way back, laying a new foundation for more durable economic growth. But many of the challenges that faced the middle class before the recession remain. And Washington has taken its eye off the ball.

Too many people in this town are focused on scoring political points or fanning phony scandals instead of finding ways to help grow our economy, create jobs, or roll back a 30-year trend of rising inequality.

It’s time for that to stop. It’s time for all of us to focus on our top priority as a country, and that’s reigniting the engine of our prosperity: a rising, thriving middle class.

That’s what I just said while speaking at Knox College, back home in Illinois, where I kicked off a series of speeches on what truly matters to the middle class.

If building America from the middle out is an idea you share, I need you to stand with me. Add your voice to mine.

This has been my North Star for as long as I've been in office, and it's what will shape the time that I have left in the White House.

In the weeks ahead, in towns across the country, I’ll be talking about my ideas for building on the cornerstones of middle-class security: Good jobs with good wages. An education that prepares our children and our workers for a new economy. A home to call your own. Affordable health care when you get sick. A secure retirement even if you’re not rich. A better bargain for the middle class, and for all who are striving to join it.

This is the debate we need to have. And you can join me right now.

Let the country know that you believe that America works best not when it grows from the top down, but when it grows from the middle out:

http://www.whitehouse.gov/a-better-bargain/speak-out

Thank you,

President Barack Obama

 

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