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Originally posted by irishchic
I don't think they will hold.
In San Antonio the commercial vacancies are staggering and we're doing "well down here so they say!
US Treasury Secretary Tim Geithner shocked global markets by revealing that Washington is "quite open" to Chinese proposals for the gradual development of a global reserve currency run by the International Monetary Fund.
The dollar plunged instantly against the euro, yen, and sterling as the comments flashed across trading screens. David Bloom, currency chief at HSBC, said the apparent policy shift amounts to an earthquake in geo-finance.
"The mere fact that the US Treasury Secretary is even entertaining thoughts that the dollar may cease being the anchor of the global monetary system has caused consternation," he said.
Mr Geithner later qualified his remarks, insisting that the dollar would remain the "world's dominant reserve currency ... for a long period of time" but the seeds of doubt have been sown.
The markets appear baffled by the confused statements emanating from Washington. President Barack Obama told a new conference hours earlier that there was no threat to the reserve status of the dollar.
"I don't believe that there is a need for a global currency. The reason the dollar is strong right now is because investors consider the United States the strongest economy in the world with the most stable political system in the world," he said.
The Chinese proposal, outlined this week by central bank governor Zhou Xiaochuan, calls for a "super-sovereign reserve currency" under IMF management, turning the Fund into a sort of world central bank.
The idea is that the IMF should activate its dormant powers to issue Special Drawing Rights. These SDRs would expand their role over time, becoming a "widely-accepted means of payments".
World leaders should give urgent attention to reaching consensus on creating a global reserve system that would replace the US dollar as the main international currency, the United Nations General Assembly was told on Thursday.
The recommendation, by an advisory committee set up by the 192-member world body, followed China’s proposal for an extension of the use of special drawing rights (SDRs) created by the International Monetary Fund and the eventual replacement of the dollar as the world’s reserve currency.
Andrei Denisov, Russia’s deputy foreign minister, told a General Assembly meeting on the global financial crisis: “The current situation requires new collective solutions agreed at the international level.”
Speaking to the RIA news agency, he added: “This proposal is aimed at a practical realisation of the idea about a new global accounting unit or a new global currency. It is a question which should be discussed to create a consensus.”
Joseph Stiglitz, the Nobel-prizewinning US economist who chairs the UN advisory committee, said reform of the global reserve system was long overdue. In the context of the present financial crisis, the dollar-based system meant that poor countries were lending to rich countries at virtually zero interest rates rather than using reserves to stimulate their own economies.
He told the General Assembly that financial instability had obliged developing countries to accumulate dollar reserves to protect against a rainy day. The consequence, however, was to tie up trillions of dollars that could be spent on helping them combat the worst effects of the financial crisis.
“The current system contributes to global instability, it contributes to the insufficiency of global aggregate demand,” Mr Stiglitz said.
The dollar-based reserve system was bad for the world’s economies and bad for the US. “The global reserve system has been fraying for a long time. It’s hard to be a strong reserve currency when that currency is highly volatile,” he said. There was great uncertainty because of the size of the Federal Reserve balance sheet and of US debt.
New York City’s unemployment rate leaped last month to 8.1 percent from 6.9 percent, the biggest jump in any month on record, New York State’s Department of Labor said on Thursday.
The rise ended a long period when the city’s job market was outperforming the nation’s. The city’s unemployment rate is now equal to the national rate.
The city lost 3,600 jobs in February, a month when hiring in tourism-related businesses usually leads to an increase in overall employment. In the previous 10 years, the city had added an average of 18,900 jobs in February.
“The city’s economy continues to weaken month-by-month with over-the-year losses widening dramatically,” said James Brown, an analyst with the Labor Department.
A year ago, the city’s unemployment rate was 4.4 percent. The city’s rate has been much higher in the past — it hit 11.7 percent in 1992 — but it has not risen so much in any month since record-keeping started in 1976. The current rate is the highest for the city since October 2003.
Northern Arizona University -45
NY Times -100
Clifford Chance Cuts Again -24
Trinity Industries Idles 2 Plants -156
Trane Co. -80
Blender Magazine Shuts Down -30
Belmont County Sheriff's Dept. -68
Fairchild Semiconductor Closing 2 Plants
Disney Update/Estimate -450
Cooper Standard Automotive -650
Agilent Technologies -2,700
Burton Snowboards -5%
Flint Journal -82
Graphic Packaging Corp. -30
Law Firms: Dechert -125/Edwards -60
Noranda Zinc Plant -45
United Way Kentucky -4
Pajaro Valley Schools -222
Lafarge SA -130
Oshkosh School Teachers -39
Heidelberger Druckmaschinen -2,500
Ownens Corning Selkirk Plant -60
Beaufort County NC -12
Toledo OH Police -75
Williams County OH Deputies -7
Jackson Hughston Hospital -70
Boston Schools -500
Timken Canada -140
Backyard Adventures Closing TX Plant -75
Sandvik Closing USA Plant -90
Fayetteville Publishing -18
Disney Theme Park Layoffs
City of Lakeville MN -9
Children's Farm Home -9
ESCO Turbine Technologies -32
New Hampshire Public TV -5
Bakersfield CA Newspaper -26
IBM Layoff Update -5,000
Tulare County Govt. -11
TOTAL 11,600 - approx -
*not including - these two items -
*6,000 GM UAW Workers Take Buyout
*Michigan Factory Jobs 12 Months -112,000
More at Link...
Tension simmers at Nomura as Lehman bonuses loom
HONG KONG (Reuters) - Things are getting tense at Japanese brokerage Nomura Holdings.
As Japan's annual banker bonus season nears, there are expectations that many of the 8,000 or so Lehman staff inherited in a bold acquisition of the failed Wall Street broker late last year may walk or be axed.
Concerns over pay disparity and job security are rife and have soured the mood at Nomura, which bought Lehman's Asian, European and Middle Eastern divisions in a bid to raise its global profile and get instant access to places like China, Dubai and London.
While some legacy Lehman bankers, used to taking risks and making snap decisions, are frustrated by a traditional Japanese corporate culture of bureaucracy, hierarchy and deliberate decision making, two sources at the bank say Nomura veterans resent how Lehman staffers are paid and how some replaced Nomura executives.
"The mood within the office is very bad," said one London-based Nomura employee, a sentiment shared in Asia, according to several bank staffers contacted by Reuters, none of whom wanted to be named due to the sensitivity of the matter.
Do not for a second believe that the fact that the stock market rallied has defused the underlying problem. It has not. The underlying problem is not the stock market. It is the credit (bond) market - that is, the underlying reality that there is too much debt out there in relationship to GDP, it cannot all be serviced, and as the economy contracts it feeds a vicious spiral where a default produces unemployment which drops both spendable income (and thus income available debt service) AND tax revenues, giving it to the credit market in all orifices. This is "deflationary destruction" and it is inevitable when government pushes off the normal cyclical cleaning out that recessions do, as our government has.
Guess we won't have to worry about AIG exec's blowing our money there...
Las Vegas project considers bankruptcy: report
NEW YORK (Reuters) - City Center, an $8 billion Las Vegas project owned by MGM Mirage (MGM.N) and Dubai World, has hired counsel to advise on a possible bankruptcy filing, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
The casino operator, controlled by billionaire Kirk Kerkorian, and its joint venture partner Dubai World are likely to struggle to pay $220 million due Friday on CityCenter, the newspaper said.
When contacted by Reuters, a spokeswoman for MGM Mirage declined comment.
CityCenter has hired Dewey & LeBoeuf to prepare for a possible Chapter 11 filing as soon as this weekend, depending on the outcome of talks between MGM Mirage, the lenders and Dubai World, the people told the WSJ.
Dubai World said on Monday it sued MGM over the CityCenter development, asking Delaware Chancery Court to find that some financial disclosures in a recent MGM filing constitute events of default under the joint venture.
CityCenter is a 67-acre residential, resort and retail complex on the Las Vegas Strip and it is slated to open late this year. MGM and Dubai World have $500 million to fund before a $1.8 billion bank facility becomes available in May.
Originally posted by stander
Originally posted by pause4thought
FTSE at close:
That makes for a big gain on the Dow this week so far. Will it hold till last thing Friday is the question.
This gets settled
Top US lawmakers said Thursday that Congress would take action if accounting regulators and rulemakers failed to quickly improve the mark-to-market accounting standard that has forced banks to record billions of dollars in asset writedowns.
and the banks will record only the good news. That will stabilize the banks in the eyes of the traders and in less than one month, the Dow will snake around the 8k beam.
Seven Year Result
March 26th, 2009 1:14 pm
The seven year auction was a rather bland affair and lacked the fireworks of the 5 year note auction.
The auction average was 2.384 which was slightly through the 2.385 bid side which prevailed at auction time.
Indirect bidding slumped to 28 percent from 38.7 percent at the initial auction last month.
One dealer reports speculative buying of 10 year notes post the auction.
Trade is contracting again, at a rate unmatched in the post-war period. This week the World Trade Organisation (WTO) predicted that the volume of global merchandise trade would shrink by 9% this year. This will be the first fall in trade flows since 1982. Between 1990 and 2006 trade volumes grew by more than 6% a year, easily outstripping the growth rate of world output, which was about 3% (see chart 1). Now the global economic machine has gone into reverse: output is declining and trade is tumbling at a faster pace. The turmoil has shaken commerce in goods of all sorts, bought and sold by rich and poor countries alike.