News Links: Kellogg’s outlook suffers after axing ‘too many jobs’
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BBC News – Kellogg’s outlook suffers after axing ‘too many jobs’
Cereal maker Kellogg’s has announced a $70m (£43.6m) investment in its factories after too many job cuts undermined production standards.
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Bank CEOs Lying When They Say They’ve Stopped Robosiging « naked capitalism
there is even evidence that robosigning is still taking place, AFTER the banks were supposedly investigated by 11 Federal regulators (we’ve repeatedly expressed our skepticism about that efforts, and our doubts were confirmed by the GAO) and after the servicers entered into consent decrees which made this sort of thing impermissible.
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Groupon Is the Biggest Internet IPO Since Google – Deal Journal – WSJ
According to data provider Capital IQ, the amount of money Groupon is raising makes it the second-biggest-ever U.S. IPO in the Internet software and services sector.
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A Gravity Test for the Euro – Kenneth Rogoff – Project Syndicate
Absent a clear path to a much tighter fiscal and political union, which can lead only through constitutional change, the current halfway house of the euro system appears increasingly untenable. It seems clear that the European Central Bank will be forced to buy far greater quantities of eurozone sovereign (junk) bonds. That may work in the short term, but if sovereign default risks materialize – as my research with Carmen Reinhart suggests is likely – the ECB will in turn have to be recapitalized. And, if the stronger northern eurozone countries are unwilling to digest this transfer – and political resistance runs high – the ECB may be forced to recapitalize itself through money creation. Either way, the threat of a profound financial crisis is high.
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A taboo has been broken – it is possible for a country to leave the eurozone
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Papandreou scraps Greek referendum as open warfare erupts in his party | World news | The Guardian
Greece’s prime minister clings on to power on day of drama, but is likely to lose Friday’s confidence vote in Greek parliament
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Halts in Jefferies trading echo MF Global – FT.com
Jefferies Group, the independent investment bank, had trading in its shares halted twice after a credit rating downgrade by Egan-Jones, the rating agency, which drew parallels with MF Global, the broker-dealer that collapsed this week.
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AIG loses $4 billion on planes, weak markets | Reuters
Insurer American International Group lost more than $4 billion in the third quarter, as its aircraft leasing unit took an impairment charge on a portion of its fleet and the fair value of the company’s one-third stake in Asian insurer AIA fell.
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Q&A: Euro exit would give EU legal and financial headache – FT.com
The treaties do include a sort of emergency clause that allows the European Commission, the EU’s executive arm, to make proposals to deal with extraordinary events that are a threat to the single currency. So it could probably use this as a basis to draft a Greek exit, if necessary. As with all EU matters, the process would not be immediate. The other 26 member states would have to unanimously approve, as well as the European Parliament. Thanks to a clause in the Lisbon treaty, which came into force in 2009, Greece could take a more radical approach and opt to leave the EU altogether. (This clause was added at the behest of the UK, to prove to its eurosceptic voters that the bloc was not a straitjacket that could never be removed). In this case, Greece would require only majority approval from other member states.
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A family in Utah sold their home earlier this year and thought they had rid themselves of their Bank of America mortgage. That is, until they received a foreclosure notice several months later for a house they no longer owned — all over a $1 coding error.
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Ambitious people leaving Vancouver – The hollowing out of a city | Vancouver Condo Info
The economy in this city is broken. I can no longer count on two hands the number of friends and coworkers who have left to find better opportunity elsewhere in the last few years. As Vancouver Magazine points out, it’s what young ambitious people are doing right now. Vancouver is squeezing the middle class out.
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China’s Wealthy as Canadian Real Estate Forcing Function
the effect on Canadian real estate is immense, especially when the inbound wealth is funneled largely into two population centers, Vancouver and Toronto.
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So Again I Ask: WHERE IS THE SO-CALLED TEA PARTY? in [Market-Ticker]
So where is the insistence on the "Rule of Law"? You know, the one you want to enforce when it comes to "One man, one woman" with marriage? Or "no gays in the military"? Or, for that matter, The Second Amendment? Ah, I get it. The rule of law only matters when it applies to a particular thing you like. The rest of the time, it doesn’t count at all. In fact, you’ll willfully close your eyes and ignore the lawbreaking when your buddy does it; the screaming only commences when your political enemy is a participant.
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Grassroots refusal to put up with austerity is quickly gaining momentum, as people give up on mainstream politics
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Freddie Mac reports loss, seeks $6.0 billion | Reuters
Mortgage finance giant Freddie Mac (FMCC.OB) said on Thursday it will seek an additional $6 billion from U.S. taxpayers following its worst quarterly loss this year.
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Jeder sechste Einwohner Deutschlands ist armutsgefährdet. Dabei sind Arbeitslose und Alleinerziehende laut Statistischem Bundesamt besonders betroffen. Als bedroht gilt, wer monatlich weniger als 940 Euro zur Verfügung hat.
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Appeals court decision on reduced sentence for rapists sparks outrage
The Supreme Court of Appeals approved a decision on Monday by the Mardin 1st High Criminal Court to give 26 suspects, tried for raping a minor in the southeastern province of Mardin, sentences ranging from one to six years in a trial earlier this year. The local court had justified its decision based on the victim’s alleged “consent” during sexual intercourse.
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Report: Poverty hits record level – MJ Lee – POLITICO.com
Defined as individuals living at 50 percent or less of the official poverty level, 6.7 percent of the U.S. population — or one in 15 people — are considered to be the poorest of the poor. That’s the highest in the 35 years since the Census Bureau has tracked those figures, the wire said. Previous highs were in 2009 and 1993, when the poorest of the poor made up just more than 6 percent of the U.S. population.
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Papandreou’s Last Stand? – The Source – WSJ
Thursday’s rapid developments in Greek politics have generated an avalanche of information, putting firmly in question everything from Prime Minister George Papandreou’s survival to the country’s euro membership. A senior figure from the ruling Socialist party, Pasok, has told us that Mr. Papandreou’s resignation is the “likeliest scenario.”
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Assuming that Groupon will earn $0.84 on revenue of $3.3 billion with 700 million shares outstanding and a 35% tax rate, moreover, suggests that Groupon will generate nearly $1 billion of operating income in 2013. This would be a 30% operating profit margin, which is a spectacular operating profit margin, especially for a company that is still losing money. So those estimates seem pretty aggressive. They’re also vastly higher than the Groupon estimates published earlier this week by analyst Ken Sena of Evercore Partners, who is not on the underwriting team.
I believe the big picture is becoming pretty clear. What they mention in “Der Spiegel” and in “Politico” about the rise of poverty is actually happening globally. I like the term I have first heard from you “Soft depression”, maybe I would use the term “Creeping depression”. In the grand scheme of things if you look at the world holistically and don’t restrict yourself to seeing just one part of the picture it manifests itself in many ways – the above mentioned rise in poverty levels, joblessness, lower wages and less benefits for those keep their jobs, general rise in precarity – general decrease of in the quality of existence and social standarts, falling consumer spending levels, rise of radicalism and confrontational style of politics, currency wars (?)….
No argument here. Let’s just hope the depression stays soft!!