Tuesday, July 30, 2013

Investors Are Lab Rabbits in Central Bank Experiments

Original article here.

The European Central Bank and Bank of England are emulating Ben S. Bernanke’s experiment in offering monetary-policy guidance to financial markets. Investors could well end up being the guinea pigs. 

Bond prices have fluctuated during the last three months, with the yield on the 10-year Treasury note swinging from 1.63 percent to 2.74 percent, the fastest jump since 2010, as the Federal Reserve chairman struggled to provide a clearer picture of when and why the central bank will reduce and then end its asset purchases.

“If this is science, then we’re the little white lab rabbits,” said Vincent Reinhart, chief U.S. economist for Morgan Stanley in New York, who served as the Fed’s chief monetary-policy strategist from 2001 to 2007. 

More communication mishaps are likely as the ECB and BOE strive to get their messages across to the market, said Gilles Moec, co-chief European economist at Deutsche Bank AG in London and a former Bank of France official. “The potential for the dialog between the central banks and the market to sometimes fail is significant,” he said.

All three monetary authorities meet separately this week, with the Fed gathering on July 30 and 31 and the ECB and BOE announcing policy decisions Aug. 1.

ECB President Mario Draghi said July 4 that the central bank expected its key interest rates “to remain at present or lower levels for an extended period of time.” The central bank’s main refinancing rate is 0.5 percent while its deposit facility rate is zero.

F.A. Hayek, amongst others, warned of the dangers of central planning.  Until currency competition becomes a reality, investors will remain part of an experiment.

Wednesday, July 17, 2013

New York State Government Corruption

Where to begin.  Vito Lopez is finally out of the Assembly, however his 'non-profit' received over $420k from the New York City Council.  Who better to administer 'non-profit' funding than Vito Lopez?

Ethics Panel Fines Lopez $330,000 in Harassment Case

Lopez is not alone...

New York corruption probe: Names released of 7 elected officials recorded by disgraced state Sen. Shirley Huntley

John Sampson:
U.S. Attorney Slams John Sampson’s ‘Extreme Examples of Political Hubris’

Indictment of John L. Sampson

Malcolm Smith:
Jumping From Party to Party to Bribery Charge

Troubles Continue For Sen. Malcolm Smith — Hit With Alarming New Charge

Malcolm in the Muddle

Velmanette Montgomery:
State Sen. Velmanette Montgomery Named in Federal Investigation

Ruth Hassell-Thompson:
Sen. Ruth Hassell-Thompson among officials recorded for feds 

Jose Peralta:
Jose Peralta's Role in FBI Probe Brings Attention to Seat's History

Eric Adams:
Brooklyn Borough prez hopeful Eric Adams among  the 7 names of officials recorded by feds


Some older incidents...

Kevin Parker:
Senator Convicted of Misdemeanor Charges in Clash With Photographer (he was cleared of more serious felony assault charges)

Pedro Espada:
Crooked ex-state Sen. Pedro Espada Jr. sentenced to 5 years in prison for embezzlement

Carl Krueger:
Former State Senator Is Sentenced to 7 Years in Vast Bribery Case

Hiram Monserrate:
Hiram Monserrate sentenced to 2 years in prison for corruption


And of course, Sheldon Silver (the KING of corruption):

Assembly Speaker Sheldon Silver sued over $103K sexual harassment settlement

NYers Pay $500/Hour To Defend Sheldon Silver From Gropez Lawsuit

Assembly Speaker Sheldon Silver sued for using taxpayer money in Albany sex scandal pay-off

Voters Think Silver Should Resign, Poll Finds

Gov. Cuomo considering ousting Assembly Speaker Sheldon Silver over Albany scandals

Private citizen sues Speaker Sheldon Silver, demands he repay taxpayers for secret Lopez settlement

Silver, others ‘targeted’ Lopez accusers

Two Vito Lopez sexual harassment victims file lawsuits in state and federal courts against Lopez and Assembly Speaker Sheldon Silver


And now for some humor.  Our brilliant Governor has a genius plan to help solve the corruption plaguing New York State - he is calling on the state legislature to pass 'anti-corruption' laws on themselves - of which he, the righteous Governor will surely enforce.  Not surprising, since he has also failed to respect our Second Amendment rights and believes that firearms are only used for hunting deer.  The man is a genius.

Is it now time to get serious about fixing New York?

Thursday, July 4, 2013

The Rarest of Gifts

From Lieutenant Commander Rorke Denver:

The Holy Trinity of holidays in an American warriors mind, in my opinion, would be comprised of Memorial, Veterans and Independence Day. Of the three, Independence Day, or the 4th of July, holds a supreme station. Warriors are fighters. That is core to who they are. If you asked 100 of them to describe what they fight for, you would get many answers. Commonalities of service to country, for my brother warriors, for my family would ring out consistently. But if I had to pick one motivation or purpose, I could do no better than freedom. Freedom, and I will accept liberty as an equal concept, is the rarest of gifts we enjoy in this incomparable nation. This singular concept serves as a compass by which our nation, and each and every one of us chart our American experience. If you have never left our shores, it is hard to understand, on a visceral level, the value and experience of free peoples. Fear, bondage, oppression, servitude, confinement and subjugation are the reality of those who know no freedom. Trust, opportunity, faith, expression, voice and happiness are our reality. One of my favorite dictionary definitions highlights the difference. “The right and power to act, believe, or express oneself in a manner of ones own choosing”. That is what freedom offers, power and choosing. Our nation is young, but how far we have come. None of our exceptionalism would have been possible without freedom. On this Independence Day, you have a choice of what, with whom and how you celebrate. Remember that the very ability to choose is unique in the world. It has been defended from the day of “declaration”, often with blood, for just shy of 240 years. Choose wisely.

We highly recommend reading Damn Few: Making the Modern SEAL Warrior and watching Act of Valor if you have not done so already.  Happy Independence Day.