"The amount of debt that an economy can pay is limited by the size of its surplus, defined as corporate profits and personal income for the private sector, and net fiscal revenue paid to the public sector. But neither today’s financial theory nor global practice recognize a capacity-to-pay constraint. So debt service has been permitted to eat into capital formation and reduce living standards – and now, to demand privatization sell-offs."

"When debtors cannot pay, and when the banks in turn cannot pay their depositors and other counterparties, the financial system turns to the government to extract the revenue from “taxpayers” (not the financial sector itself). The policy bails out insolvent banks by plunging domestic economies into debt deflation, making taxpayers bear the cost of banks gone bad."

"Buyers borrow credit to appropriate “the commons” in the same way they bid for commercial real estate. The winner is whoever raises the largest buyout loan – by pledging the most revenue to pay the bank as interest. So the financial sector ends up with the revenue hitherto paid to governments as taxes or user fees. This is euphemized as a free market."

Before foreclosing, judges must hear out homeowners

Before foreclosing, judges must hear out homeowners: "The couple said Deutsche failed to attach the original note and assignment of mortgage to its complaint; that it collected payments but failed to credit the homeowners; that it deceived the couple when they tried to modify their delinquent loans; and that it 'participated in a full-scale venture to induce the homeowners to borrow funds at exaggerated rates.'
Joshua Bleil, also with Ticktin Law Group, said the case illustrates the widespread problems in foreclosure cases.
'It's the process of the motions for summary judgment that the banks have been using to foreclose en masse, even though we file defenses,' he said. 'It's the rocket docket.'"

Currency Tensions Rising « naked capitalism

Currency Tensions Rising « naked capitalism: "For the US, reducing our trade deficit really means reducing imports of manufactured goods. That ultimately also means increasing exports, but that will take a longer time to put into effect, assuming the US multinational vogue for offshoring can be partially reversed. Before readers start haring on how cheap labor is in Bangladesh, recall that factory labor is only 10% of the final sales cost of most manufactured goods, and sending work overseas involves some offsets (transit time, which reduces flexibility, higher managerial/coordination costs, need to finance a longer production cycle). So in many industries, more flexible, just in time manufacturing could have been competitive in quite a few sectors. The real reason for the loss of jobs isn’t so much worker cost as lack of management imagination and resourcefulness (how fashionable is it in the US these days to be in a manufacturing business? “Talent” wants to be on Wall Street or in Silicon Valley)."

Read the last sentence again: The real reason for the loss of jobs...lack of management imagination and resourcefulness...Talent wants to be on Wall Street.

Observe the following: Wall Street trading used to be the backwater and then became overrun with Talent. If the same Talent flows back to manufacturing, the growth will accelerate in manufacturing again. Until it crashes, of course; but, the rise will happen.

Now is the time to position for the stampede back into manufacturing.


The author of the piece Yves Smith has published a phenominal book "Econned" charting Wall Street's recent adventures.

Michael Dell Needs to Go: 10 Reasons Why - Dell news from Channel Insider

Michael Dell Needs to Go: 10 Reasons Why - Dell news from Channel Insider


Fresh ideas?

Within five years, most ideas have been stated, debated and outdated.

Great managers are able to continue their roles forever, but leaders need to move on within five years.

Why?

The ideas that propel leaders to the top of an organization get implemented and then everyone starts shooting arrows at the leader's backside.

At this point, the leader and his crew work on "defense" . Their offense and the forward looking and forward momentum slows and reverses.

This is very difficult to overcome.

Hello, Micheal Dell.

Social Security disability claims on the rise in Tampa Bay - St. Petersburg Times

Social Security disability claims on the rise in Tampa Bay - St. Petersburg Times:

"A steady rise in disability claims



2007 2008 2009

418,498 434,235 458,526 Number of Social Securitydisability beneficiaries





149,044 163,876 197,960 Number of initial disability applications filed in Florida




18,497 20,736 24,374 Number of disability applications filed in Tampa Bay offices

* Tampa Bay figures include applications filed at the following field offices : Clearwater, Valrico, Tampa, St. Petersburg, New Port Richey, Pinellas Park and Dade City."