Showing posts with label recovery. Show all posts
Showing posts with label recovery. Show all posts

Tuesday, January 21, 2014

What’s Crippling the Recovery: Lack of Investment Demand or Too-Big-to-Lend Banks?

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What’s Crippling the Recovery: Lack of Investment Demand or Too-Big-to-Lend Banks?

Monday, January 13, 2014

Haiti’s “Recovery”: Luxury Hotels Next to Tent Cities


In January 2010 Haiti suffered from a magnitude 7.0 earthquake. In the months following the disaster the predominantly black Caribbean nation received millions of dollars in aid. Yet most of this revenue came with strings attached and often made its way back into the hands of the countries and corporations that donated it.


Much of this investment is being used to build luxury hotels and industrial parks, under the premise that it would create jobs and employ the Haitians. Today much of Haiti remains unchanged. Almost three years since the earthquake, less than 2,000 Haitians have actually been employed.  Some foreign companies are only investing in structures that will accommodate foreign interests. There is also the rising exploitation of Haiti’s natural resources.


The lack of emphasis on rebuilding Haiti’s infrastructure is problematic because approximately 300,000 Haitians are still living in tent cities. Of these, many are unemployed. Further, those removed from their lands due to foreign investment have been compensated very little, or have not received any remuneration at all.


Sources:


Julie Levesque, “Haiti ‘Reconstruction’: Luxury Hotels, Sweat Shops and Deregulation for the Foreign Corporate Elite,” Global Research, August 16, 2013, http://www.globalresearch.ca/haiti-reconstruction-luxury-hotels-sweat-shops-and-deregulation-for-the-foreign-corporate-elite/5344546.


Isabeau Doucet, “Made in Haiti, Dumped in Haiti: Slave Labor and the Garment Industry,” Global Research, July 11, 2013, http://www.globalresearch.ca/made-in-haiti-dumped-in-haiti-slave-labor-and-the-garment-industry/5342396.


Haiti Grassroots Watch, “Haiti ‘Open for Business’: Sourcing Slave Labor for U.S.-Based Companies,” Global Research, March 18, 2013, http://www.globalresearch.ca/haiti-open-for-business-sourcing-slave-labor-for-u-s-based-companies/5327292.


Bill Quigley and Amber Ramanauskas, “Haiti: Seven Places Where Earthquake Money Did and Did Not Go,” Common Dreams, January 3, 2012,  https://www.commondreams.org/view/2012/01/03-2.


Student Researcher: Jephie Bernard, (Florida Atlantic University)


Faculty Evaluator: James F. Tracy (Florida Atlantic University)





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Haiti’s “Recovery”: Luxury Hotels Next to Tent Cities

Wednesday, January 1, 2014

The Economic Recovery Has Now Been Exposed As Nothing But Propaganda -- Episode 203

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The Economic Recovery Has Now Been Exposed As Nothing But Propaganda -- Episode 203

Monday, October 28, 2013

What Spanish Recovery?

What Spanish Recovery?
http://currenteconomictrendsandnews.com/wp-content/uploads/2013/10/cbaec__20131028_spain_0.jpg


One of the prevailing themes in recent weeks has been that Spain has transformed out of Europe’s economic basket case into a success story. This was further exemplified today by the following quote by DieselBOOM:


  • DIJSSELBLOEM: SPANISH RECOVERY IS ON TRACK 

  • DIJSSELBLOEM: SPAIN COULD BE FRONT RUNNER OF EURO-AREA RECOVERY

It could, if one listens to bureaucrats peddling snake oily hope, but certainly not based on actual dynamics in its housing market, where mortgage apps have tumbled 90% from all time highs, pocket change investment by Bill Gates notwithstanding, and where even the YoY change has now trippled dipped.



 


… and certainly not based on loan to companies or households, which continue to be the worst in the Eurogroup.



So one wonders: with a housing market deader than ever, and with loan creation that is the worst in the Eurozone, will the modest bounce in employment, which as we explained last week was all driven by a seasonal jump in temp and self-employed workers, just where is Mr. DieselBOOM and the endless ranks of Eurotopians seeing this mythical Spanish recovery? Aside from the IBEX of course, which like every other liquidity-bubble dependent indicator is merely reflecting the roughly $ 3 trillion in annual global liquidity injections by the world’s central banks?






    








Zero Hedge




Read more about What Spanish Recovery? and other interesting subjects concerning Commentary at TheDailyNewsReport.com

Sunday, October 27, 2013

Detroit Pensioners Face Miserable 16 Cent On The Dollar Recovery

Detroit Pensioners Face Miserable 16 Cent On The Dollar Recovery
http://currenteconomictrendsandnews.com/wp-content/uploads/2013/10/8a67d__LehmanRepricing_0.JPG


If there is ever a case study about people who built up their reputation and then squandered it for first being right for all the wrong reasons, and then being wrong for the right ones, then Meredith Whitney certainly heads the list of eligible candidates. After “predicting” the great financial crisis back in 2007 by looking at some deteriorating credit trends at Citigroup, a process that many had engaged beforehand and had come to a far more dire -and just as correct – conclusion, Whitney rose to stardom for merely regurgitating a well-known meme, however since her trumpeted call was the one closest to the Lehman-Day event when it all came crashing down, it afforded her a 5 year very lucrative stint as an advisor. Said stint has now been shuttered.


The main reason for the shuttering, of course, is that in 2010 she also called an imminent “muni” cataclysm, staking her reputation once again not only on what is fundamentally obvious, but locking in a time frame: 2011. Alas, this time her “timing” luck ran out and her call was dead wrong, leading people to question her abilities, and ultimately to give up on her “advisory” services altogether. Which in some ways is a shame because Whitney was and is quite correct about the municipal default tidal wave, as Detroit and ever more municipalities have shown, and the only question is the timing.


However, as Citi’s Matt King recent showed, when it comes to stepwise, quantum leap repricings of widely held credits, the revelation is usually a very painful, sudden and very dramatic one. This can be seen nowhere better than in the default of Lehman brothers, where while the firm’s equity was slow to admit defeat it was nothing in comparison to the abject case study in denial that the Lehman bonds put in. However, as can be seen in the chart below, when it finally came, and when bondholders realized they are screwed the morning of Monday, Septembr 15 when the Lehman bankruptcy filing was fact, the move from 80 cents on the dollar to under 10 cents took place in a heartbeat.



It is the same kind of violent and anguished repricing that all unsecrued creditors in the coming wave of heretofore “denialed” municipal bankruptcy filings will have to undergo. Starting with Detroit, where as Reuters reports, the recovery to pensioners, retirees and all other unsecured creditors will be…. 16 cents on the dollar!…  or less than what Greek bondholders got in the country’s latest (and certainly not final) bankruptcy.


From Reuters:








On Friday, city financial consultant Kenneth Buckfire said he did not have to recommend to Orr that pensions for the city’s retirees be cut as a way to help Detroit navigate through debts and liabilities that total $ 18.5 billion.


 


Buckfire said it was clear that the city did not have the funds to pay the unsecured pension payouts without cutting them.


 


“It was a function of the mathematics,” said Buckfire, who said he did not think it was necessary for him or anyone else to recommend pension cuts to Orr.


 


“Are you saying it was so self-evident that no one had to say it?” asked Claude Montgomery, attorney for a committee of retirees that was created by Rhodes.


 


“Yes,” Buckfire answered. 


 


Buckfire, a Detroit native and investment banker with restructuring experience, later told the court the city plans to pay unsecured creditors, including the city’s pensioners, 16 cents on the dollar. There are about 23,500 city retirees.



One wonders by how many cents on the dollar the recovery to pensioners would increase if the New York-based Miller Buckfire were to cut their advisory fee, but that is not the point of this post (it will be of a subsequent).


What is the point, is that creditors across all products, aided and abetted by the greatest credit bubble of all time blown by Benny and the Inkjets, will find the kind of violent repricings that Lehman showed take place whenever hope dies, increasingly more prevalent. And since retirees and pensioners are ultimately creditors, this is perhaps the fastest, if certainly most brutal way, to make sure that the United Welfare States of America is finally on a path of sustainability.


The only question is how will those same retirees who have just undergone an 84 cent haircut, take it. One hopes: peacefully. Because among those whose incentive to work effectively has just been cut to zero, is also the local police force. In which case if hope once again fails, it is perhaps better not to contemplate the consequences. For both Meredith Whitney, who will eventually be proven right, and for everyone else.






    








Zero Hedge




Read more about Detroit Pensioners Face Miserable 16 Cent On The Dollar Recovery and other interesting subjects concerning Commentary at TheDailyNewsReport.com

Sunday, October 20, 2013

Aztec 1948 UFO Crash - Secret Recovery of Alien Technology HD MOVIE Reloaded

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Saturday, August 24, 2013

Incomes Down More During Obama "Recovery" Than During Recession


“But the economy is rebounding, things are looking up, we’ve created so many jobs. …”


We’ve been hearing the propaganda from the Administration for the past five years now about how the country’s coming back.


Or alternately, whenever Obama can’t completely weasel out of the facts, which is increasingly the case, then it’s all President Bush’s fault.


But as the media and White House have consistently tried to blow sunshine in our faces, backing up their phony recovery with massaged numbers and doctored reports, the average person has felt reality impinging on the edges of the pretty pictures as gas prices have settled at two to three times their level under most of Bush’s term, food prices have risen steadily, utilities have become more costly, taxes have increased bit by bit and hours have been cut back.


That reality is spelled out in the declining income of the American family.


New estimates derived by Sentier Research from the Census Bureau’s Current Population Survey show that the typical American household’s income has dropped more than twice as much during the years of President Obama’s “recovery” as it did during the years of the official recession.


The figures show that in inflation-adjusted dollars, real median household income fell 1.8 percent during the recession and has fallen 4.4 percent during the recovery.


That means that during the recession, which officially ended in June 2009, families lost $ 1,002 (from $ 55,480 to $ 54,478) of income. Since the end of the recession, families have lost $ 2,380 (from $ 54,478 to $ 52,098).


The new income figures include government payouts, such as unemployment and cash aid to needy families. That shows that the Democrats’ preferred method of stimulus — increasing the costs of government and dribbling some of the money out to the public — is not working.


Logic would have revealed that to anyone who thought more than two seconds about economic models, but for liberals, here’s the pudding, proof and all.


The people behind the economic policies that continue to crush American families are supposed to be educated people. They should understand that their dogmatic economic approaches won’t work.


That leads once again to the conclusion many of us reached long ago that this is being done on purpose.


It also leads to the sensible conclusion that it is not in anyone’s interest to continue to endure this Administration’s wanton destruction of our economy and way of life.







Tad Cronn is the editor in chief of The Patriots Almanac.











Godfather Politics



Incomes Down More During Obama "Recovery" Than During Recession

Sunday, June 30, 2013

Capping recovery from war, Croatia joins a troubled EU

ZAGREB (Reuters) – Two decades since fighting itself free of Yugoslavia, Croatia becomes the 28th member of the European Union at midnight on Sunday against a backdrop of economic woes in the Adriatic republic and the bloc it is joining.



Reuters: Top News



Capping recovery from war, Croatia joins a troubled EU

Capping recovery from war, Croatia joins a troubled EU


Croatia

Croatia’s Prime Minister Zoran Milanovic arrives at a European Union leaders summit in Brussels June 27, 2013.


Credit: Reuters/Yves Herman






ZAGREB | Sun Jun 30, 2013 6:16am EDT



ZAGREB (Reuters) – Croatia becomes the 28th member of the European Union at midnight on Sunday, a milestone capping the Adriatic republic’s recovery from war but tinged with anxiety over its economy and the state of the bloc it joins.


EU flags fluttered from a stage in Zagreb’s central square ahead of the evening’s festivities, but there have been few signs of the gushing welcome that marked past expansions to ex-communist Eastern Europe.


Croatia joins the bloc just over two decades after declaring independence from federal Yugoslavia, the trigger for four years of war in which some 20,000 people died.


Facing a fifth year of recession and record unemployment of 21 percent, few Croatians are in the mood to party.


The EU is also deeply troubled by its own economic woes, which have created internal divisions and undermined public support for the union.


“Just look what’s happening in Greece and Spain! Is this where we’re headed?” asked pensioner Pavao Brkanovic. “You need illusions to be joyful, but the illusions have long gone,” he said at a Zagreb market.


President Ivo Josipovic told Croatia’s Nova TV on Saturday journalists from EU countries had repeatedly asked him why Zagreb wanted to join the bloc.


“My counter question was: ‘You come from the EU. Is your country preparing to leave the bloc?’ They would invariably reply: ‘Of course not.’ Well, there you go, that’s why we are joining, because we also believe the EU has a future,” he said.


The country of 4.4 million people, blessed with a coastline that attracts 10 million tourists each year, is one of seven that emerged from the ashes of Yugoslavia during a decade of war in the 1990s.


MERKEL NO-SHOW


Slovenia was first to join the EU, in 2004, but Serbia, Bosnia, Macedonia, Montenegro and Kosovo are still years away.


To get to this point, Croatia has gone through seven years of tortuous and often unpopular EU-guided reform.


It has handed over more than a dozen Croatian and Bosnian Croat military and political leaders charged with war crimes to the United Nations tribunal for the former Yugoslavia in The Hague.


It has sold shipyards, steeped in history and tradition but deeply indebted, and launched a high-profile fight against corruption that saw former prime minister Ivo Sanader jailed.


Some EU capitals remain concerned at the level of graft and organized crime. Croatia open-border Schengen zone.


The spirit of the occasion took another knock when German Chancellor Angela Merkel, the bloc’s most powerful leader, pulled out of the accession ceremony, saying she was too busy.


Croatian media linked the move to a row over a former Croatian secret service operative wanted in Germany, though a spokesman for Merkel denied this.


Instead, Merkel urged Croatia to press on with reforms.


“There are many more steps to take, especially in the area of legal security and fighting corruption,” she said in a weekly podcast.


For some Croatians the merits of accession were undeniable, despite the lukewarm mood.


“I know many people in Croatia are very skeptical but I think EU entry is the best thing that could have happened and it’s an injustice we should have waited since 1990,” said Zeljko Kastelan, a businessman whose hotels employ 70 people.


“What we need to do now is work hard to make up for the lost time,” he said.


(Additional reporting by Annika Breidthardt in Berlin; Editing by Matt Robinson and Andrew Heavens)





Reuters: Top News



Capping recovery from war, Croatia joins a troubled EU

Friday, June 14, 2013

Detroit manager pitches debt recovery plan to creditors involving halt of debt payments


Matt Helms, Joe Guillen and Alisa Priddle
Detroit Free Press
June 14, 2013


Emergency manager Kevyn Orr on Friday laid out an extraordinary, complex and painful path back to solvency for the city of Detroit in a proposed plan to creditors.


It would spin off the city’s water department, reduce city-provided health care for retirees and immediately stop debt payments and then use that money to keep the city operating while reinvesting $ 1.5 billion over the next decade to boost crucial public services like police and fire, step up blight removal and transform an antiquated, failing city government.


The impact of the document Orr released publicly and to creditors in Friday’s historic meeting cannot be understated.


Read full article


This article was posted: Friday, June 14, 2013 at 1:18 pm


Tags: domestic news, economics









Infowars



Detroit manager pitches debt recovery plan to creditors involving halt of debt payments

Saturday, May 4, 2013

Austerity cost U.S. up to 2.2 million jobs in weakest recovery since WWII


Almost everything you need to know about the self-destructive economic policy coming out of Congress was contained in two simple statements this week. While the Federal Reserve warned that “fiscal policy is restraining economic growth,” the Republican National Committee released an ad crowing that “the sequester is here to stay.” Judging by the April jobs numbers published today, the Republican Party can declare “mission accomplished.” After all, the public sector shed another 11,000 workers last month, pushing the total just since March 2010 to 625,000. Worse still, a new analysis suggests, compared to past recoveries austerity policies at the federal, state and local government level have cost the U.S. up to 2.2 million jobs.


That’s the conclusion from the Hamilton Project. It’s not just the collapse of the housing market and the implosion of the financial sector which resulted in the slowest American recovery since World War II. Much of the damage has been self-inflicted by policymakers in Washington and the 50 states. Noting that the private sector has added 6.8 million jobs since March 2010 and 2.2 million in just the last year, the public sector “has been a drag on the economy.”


We find that the last several years’ policy choices are starkly different from those following previous recessions. Specifically, there are 2.2 million fewer jobs today, relative to what would have occurred with the policy response typical of the five preceding recessions.


The Hamilton Project is far from alone in lamenting the “anti-stimulus” of cutbacks across all levels of government. In April 2012, the Economic Policy Institute similarly concluded:

The current recovery is the only one that has seen public-sector losses over its first 31 months…

If public-sector employment had grown since June 2009 by the average amount it grew in the three previous recoveries (2.8 percent) instead of shrinking by 2.5 percent, there would be 1.2 million more public-sector jobs in the U.S. economy today. In addition, these extra public-sector jobs would have helped preserve about 500,000 private-sector jobs.



Continue reading below the fold.



Daily Kos



Austerity cost U.S. up to 2.2 million jobs in weakest recovery since WWII

Friday, May 3, 2013

Where Is The Recovery? A Higher Percentage Of Americans Had Jobs Three Years Ago


Where Is The Recovery?If you think that the latest employment numbers are good news, you might want to look again.  In April 2013, 58.6 percent of all working age Americans had a job.  But three years ago, in April 2010, 58.7 percent of all working age Americans had a job.  Well, you may argue, that is not much of a difference.  And that is precisely my point.  The percentage of Americans that have a job fell like a rock during the last recession.  It dropped from about 63 percent all the way down to below 59 percent, and it has stayed below 59 percent for 44 months in a row.  So where is the recovery?  This is the first time in the post-World War II era that the employment-population ratio has not bounced back after the end of a recession.  So anyone that tells you that we are experiencing an employment recovery is lying to you.  Yes, the U.S. economy added 165,000 jobs last month.  But it takes nearly that many jobs just to keep up with population growth.  The truth is that we are just treading water.


So why has the unemployment rate been going down?  Well, it is because the government has been pretending that millions upon millions of unemployed Americans “don’t want jobs” anymore.  In fact, an astounding 9.5 million Americans have “left the workforce” since Barack Obama took office.


Some in the mainstream media have started calling them “missing workers”.  But whatever label you want to use, the reality of the matter is that they are really hurting.  They are part of the reason why food stamp enrollment has soared from 32 million to more than 47 million while Barack Obama has been in the White House.


If you still believe that the employment market is getting better, just look at the following numbers.  The percentage of working age Americans with a job has been sitting at about the same level for four years in a row…


April 2008: 62.7 percent


April 2009: 59.8 percent


April 2010: 58.7 percent


April 2011: 58.4 percent


April 2012: 58.5 percent


April 2013: 58.6 percent


So why is everyone getting so excited over the latest numbers?  When you step back and look at what has happened to the employment-population ratio over the past decade it really is quite horrifying…


Employment-Population Ratio 2013


So exactly what part of that chart are we supposed to get excited about?


Yes, I suppose that we should be thankful that the percentage of Americans with a job has not continued to decline over the past few years.  Unfortunately, the next major wave of the economic collapse is rapidly approaching and that is going to make our employment crisis far worse.


A recovery was supposed to already happen by now.  Now we are running out of time before the next major downturn strikes.


And things have been particularly hard for our young people.  Even if our young people do go to college, there is a very good chance that good jobs will not be waiting for them once they graduate.


According to Accenture’s 2013 College Graduate Employment Survey, 41 percent of all Millennials who graduated from college during the past two years are working in jobs that actually do not require a college degree.


And a different survey conducted a while back found that 53 percent of all college graduates under the age of 25 are either unemployed or underemployed.


Perhaps you have noticed this.  Perhaps you have noticed that there seems to be large numbers of young people that are living with their parents or that can’t seem to get their lives started.


It is because the economy is not producing enough jobs for them.


We have shipped millions of good jobs overseas, we have replaced millions of jobs with technology, and we have created an economic environment that is murdering our small businesses.


Sadly, the future does not look bright for the American worker.  The big corporations that dominate our society are feverishly trying to increase profits by getting rid of as many “expensive” American workers as possible.  That is one of the reasons why corporate profits as a percentage of GDP are at a record high, but wages as a percentage of GDP are at an all-time low.


At this point there are more than 101 million working age Americans that do not have a job, and that number is going to go a lot higher in the years ahead.


But the financial markets seem to be absolutely thrilled with the present state of affairs.  The latest employment numbers caused the Dow to shoot past 15,000 and the S&P 500 to push past 1600.


Of course stocks have become completely and totally divorced from economic reality, but this does happen from time to time and it never lasts forever.  At some point there will be a rude awakening.


And I anticipated that we could potentially see the Dow hit 15,000 before it finally crashed.  Back in February, I made the following statement…


Right now, everyone seems to be quite giddy about the fact that the Dow is marching toward an all-time high.  And I actually do believe that the Dow will blow right past it.  In fact, it is even possible that we could see the Dow hit 15,000 before everything starts falling apart.



Well, now we have seen the Dow hit 15,000.  But that doesn’t change any of the long-term trends that are absolutely eviscerating our economy.


So enjoy this bubble of false hope while you can.


It will not last much longer.



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The Economic Collapse



Where Is The Recovery? A Higher Percentage Of Americans Had Jobs Three Years Ago

Thursday, April 11, 2013

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