Tag Archives: Business

One reason Congress is broken? Negative ads cripple even the winners.


By David B. McLennan – These ads matter — but not in the ways that the candidates and their campaign consultants hope they do. When the negative barrage of ads is over, the winner will likely emerge with an approval rating well under 50 percent.

Majority of winning candidates take office without the majority support of the citizens they represent. They can no longer legitimately cite the “will of the people” in proposing legislation — because they are not in a position of strength when it comes to public support. Elected officials now often have little or no honeymoon period – even with the voters who supported them. more> http://tinyurl.com/l6vox44

Updates from GE


A Short Flight for a Jet, A Giant Leap for a Jet Engine

GE – Over the last several weeks, crews at GE Aviation’s flight test base in Victorville, CA, at the edge of the Mojave Desert, installed a next-generation jet engine with ceramic components and 3-D printed parts to the wing of a modified Boeing 747, and readied it for its maiden flight.

The engine, called LEAP, successfully took to the skies on Monday (Oct 6).
(GE)
There are three versions of the jet engine: the LEAP-1A for the new Airbus 320neo passenger jets, the LEAP-1B for Boeing’s 737MAX aircraft, and the LEAP-1C for China’s COMAC C919 planes.

The LEAP is the bestselling family of jet engines in GE history. CFM has received more than $100 billion in orders (U.S. list price) from airlines like United, Air Asia, American Airlines and easyJet. They will use them on single-aisle aircraft, the fastest growing market in commercial aviation. more> http://tinyurl.com/qzqsbqj

Is China’s Bubble the Next Financial Crisis?


By Mark Whitehouse – The Chinese credit boom has rapidly turned the country into one of the developing world’s most indebted, according to a new report (pdf) from London’s Centre for Economic Policy Research.

Such credit-fueled growth can’t be sustained for long without causing major distortions and setting the country up for a fall.

The stimulus is already running into diminishing returns. Over the five years through 2013, government and private debt grew by about 3 yuan for each added yuan of economic activity, a level of credit intensity that the U.S. exceeded only in the years leading up to the 2008 crisis. more> http://tinyurl.com/k5985du

Big Banks Face Another Round of U.S. Charges


By Ben Protess and Jessica Silver-Greenberg – With evidence mounting that a number of foreign and American banks colluded to alter the price of foreign currencies, the largest and least regulated financial market, prosecutors are aiming to file charges against at least one bank by the end of the year.

Yet the breadth of the suspected wrongdoing in the currency inquiry — Deutsche Bank, Citigroup, JPMorgan Chase, Barclays and UBS are among the dozen or so banks under investigation — might distinguish it from the piecemeal nature of the crisis-era investigations. more> http://tinyurl.com/msouwc6

The Rise And Fall And Rise And Fall Of King Dollar, Part 2


BOOK REVIEW

Wealth of Nations, Author: Adam Smith.

Money, Gold, and History, Author: Lewis E. Lehrman.

The Economic Consequences of the Peace, Author: John Maynard Keynes.


By Ralph Benko – The mechanics of the reserve currency system preempt these funds’ ready availability for “the maintenance of industry.”

The mechanics of the dollar as a reserve asset, therefore, finance bigger government while insidiously preempting productivity, jobs, and equitable prosperity.

As Steve Forbes pithily puts it, “You’ve got to get the money right.” 

Time to lift the reserve currency curse. Time to fix the dollar. more> http://tinyurl.com/men5vk7

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Your Debt, Our Nation’s Headache


By Barry Ritholtz – Assets purchased with cheap and widely available credit become worth significantly less once the bubble bursts. But the debt remains.

All of that leverage used to purchase all of those assets — regardless of whether it’s subprime mortgages or dot-com stocks — sticks around.

Hence, a post-credit-crisis recovery is dominated not by the release of pent-up demand, but by massive corporate, household and government deleveraging. more> http://tinyurl.com/pryw54s

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How Harvard Minted ‘Free Money’


By Stephen Mihm – In the mid-19th century, most Ivy League presidents hailed from the ranks of the Protestant clergy: affable theologians with considerable academic training and limited knowledge of financial matters.

Enter Charles W. Eliot [2], Harvard’s 21st president. When he took over in 1869, it was a sleepy little college. By the time he left in 1909, he had bequeathed an educational powerhouse that had established an almost insurmountable lead in the race to become the world’s richest university. more> http://tinyurl.com/q6o4k28