- ECB calls a couple of desks and asks for some large offers on Spitalian bonds
- ECB doesn't trade but says they will be back in a bit
- dealers try and buy some bonds and leak the rumor that the ECB is in buying
- ECB calls back and again asks for some large offers, but doesn't trade
- dealers buy more bonds, funds buy some bonds
- everyone now figures out the ECB is a buyer and no one wants to sell
- ECB calls back, the dealers offer bonds at an even higher price, and the ECB buys some bonds, but not as much as the dealer hoped for
- the dealer aggressively gets out with the story that ECB is BIG buyer today
- hedge funds notice that the banks aren't really buying anymore and try and sell some
- desks wait for the ECB to call again
- desks get calls from hedge funds look for bids
- desk call ECB, but find out they are done buying for the day
- dealer tries to find some clients who haven't figured out the ECB is done for the day
- and sell their excess inventory to them
- everyone goes back to waiting for a new ECB rumor, because the market is weak and
- everyone is caught long again.
It is getting scary that there is no way to tell if the market is really improving. The ECB has corrupted the price discovery process so much that no rally is believed.
Protests in Greece and Italy continue. I'm not sure that they are bigger or smaller than before the technocrats came into power, but they shouldn't be ignored. The Spanish elections could be interesting as well, in any case, it will be hard to put a technocrat in charge of Spain so soon after an election. I am sure the other leaders in Europe are watching the results closely.
Is the ECB going to lend money to the IMF? Who knows, and who knows if it is lending trillions or if it is just lending the money the IMF has already committed to? Don't forget, the European nations in the IMF and the US are not keen to actually go to the markets so they can borrow money to give to the IMF. I suspect, if the ECB does finance the IMF, at least part of it will be to fund existing commitments that its members don't have the cash for.
The world seems to be splitting into two camps. Those who generally called the deterioration in Europe and saw the flaws in the plans to "fix" it. And those who didn't. Of those analysts who saw the path, saw what was happening in Greece, saw how EFSF actually fanned contagion, how austerity wouldn't work, and wondered why Italy and Spain weren't being pressured to do anything, at least half of them adamantly oppose printing money. These people who seem to have been right, are saying that printing and using the ECB is a bad idea. Of those who got it wrong, let's say Sarkozy, they are all over using the ECB and printing. The guys who have been wrong, wrong again, wrong some more, wrong once again, are the ones who are saying that ECB monetization is the best solution. Why should we believe them? It seems a bit like making the kid in the corner with the dunce hat the teacher.
There is a lot of hope that some sort of announcement will be made today. Failing that, there is hope that a weekend meeting will be scheduled, so we have a reason to be long coming into the weekend. I think we are getting close to seeing some sort of government action - new and bigger swap lines, an emergency rate cut or something, but I'm guessing it comes next week, and doesn't do much for the market. I think we are a long way from getting the ECB to fully turn on the printing press, and continue to hope that some alternative path is found. I really think that in the long run, some defaults will lead to a much better future, than printing will.
I guess we could be pleasantly surprised by the "super-committee" but somehow I doubt that too. Who came up with the name "super-committee" anyways? When we were kids, no one was allowed to create their own nickname.
http://jessescrossroadscafe.blogspot.com/
Posted on November 18, 2011
US Corporate Taxes As a Percent of Corporate Profits
"Once upon a time, the corporate income tax generated a significant share of tax revenues; now, it’s bumping along in the 2%-of-GDP range. Yes, the marginal rate of corporate income tax is high, at 35%. But US companies are extremely good at not paying that.
But at least we know the aggregate amount that corporations pay in taxes. What we don’t know — because they won’t say, and no one’s forcing them to say — is how much any given public company pays.
Allan Sloan has a very good column on this today. Companies already report 16 different tax metrics; they should simply be required to add a 17th — the amount they pay the IRS in taxes — which in many ways is most important. The companies already file tax returns; the number’s right there, on lines 31 and 32. They just refuse to say what it is."
Charts of the day, Corporate Income-tax Edition, Felix Salmon
One thing that is true is that the US has a high 'headline' corporate tax rate at 35%. This was used to justify the distribution of corporate profits as dividends that were made tax free.
But like most things in America, the headline numbers are one thing, and the reality behind the headlines is a very different picture. Some of the loopholes that allow 'offshoring profits' are eating like acid into the real economy. Why is this? As Jack Abramoff recently admitted, Congress is a willing vassal to the monied interests.
"During my years as a lobbyist, I saw scores of congressional staff members become the willing vassals of K Street firms before soon decamping for K Street employment themselves. It was a dirty little secret. And it is a source of major corruption in Congress."
And nothing will make this more clear than the discussions about the US budget. All politicians will work for tips and favors and campaign funds. But if you cannot spot who is on the full-time payroll of the 1 percent, then you might need to change your news channel.
The corporate propagandists do a good job of managing the American people. As one of the more pre-eminent of the pigmen once privately told me: 'Old people are the easiest to handle. You just scare them.'
Greed draws people in, and fear keeps them in line. Its a well-worn script. It is the basis for most ponzi schemes and financial frauds. It is the well-spring of a credibility trap.
The reporting on NYC financial TV was particularly repugnant this morning, as they called the OWS movement over, with nothing left but a few professional agitators.
They contrasted its lack of strict purpose and organized ideology with the much more compliant Tea Party Movement, that allowed itself to be reorganized around corporate advertising principles. It morphed from a financial reform movement into obedient lobbyists for the Koch Brothers and the monied interests.
And it angers the Wall Street demimonde that the loose organization of OWS does not permit an easy foothold with a few influential leaders that can be easily bought and scripted.
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Animating New York City's <b>News</b> - NYTimes.com
A Hong Kong-based company, Next Media, that has turned major news events into popular animated videos has now set up an office in New York City.
Animating New York City's <b>News</b> - NYTimes.comDenver Broncos <b>News</b>: Horse Tracks - 11/19/11 - Mile High Report
Your daily cup of orange and blue coffee. Horse Tracks!
Denver Broncos <b>News</b>: Horse Tracks - 11/19/11 - Mile High Report2011 PokerStars.com European Poker Tour Loutraki Day 4: Ziyard <b>...</b>
A recap of Day 4 of the PokerStars.com European Poker Tour Loutraki Main Event where the final table is set and Zimnan Ziyard leads the way.
2011 PokerStars.com European Poker Tour Loutraki Day 4: Ziyard <b>...</b>carpet cleaning atlanta carpet cleaning atlanta carpet cleaning atlanta carpet cleaning atlanta carpet cleaning atlanta carpet cleaning atlanta carpet cleaning atlanta
Animating New York City's <b>News</b> - NYTimes.com
A Hong Kong-based company, Next Media, that has turned major news events into popular animated videos has now set up an office in New York City.
Animating New York City's <b>News</b> - NYTimes.comDenver Broncos <b>News</b>: Horse Tracks - 11/19/11 - Mile High Report
Your daily cup of orange and blue coffee. Horse Tracks!
Denver Broncos <b>News</b>: Horse Tracks - 11/19/11 - Mile High Report2011 PokerStars.com European Poker Tour Loutraki Day 4: Ziyard <b>...</b>
A recap of Day 4 of the PokerStars.com European Poker Tour Loutraki Main Event where the final table is set and Zimnan Ziyard leads the way.
2011 PokerStars.com European Poker Tour Loutraki Day 4: Ziyard <b>...</b>- ECB calls a couple of desks and asks for some large offers on Spitalian bonds
- ECB doesn't trade but says they will be back in a bit
- dealers try and buy some bonds and leak the rumor that the ECB is in buying
- ECB calls back and again asks for some large offers, but doesn't trade
- dealers buy more bonds, funds buy some bonds
- everyone now figures out the ECB is a buyer and no one wants to sell
- ECB calls back, the dealers offer bonds at an even higher price, and the ECB buys some bonds, but not as much as the dealer hoped for
- the dealer aggressively gets out with the story that ECB is BIG buyer today
- hedge funds notice that the banks aren't really buying anymore and try and sell some
- desks wait for the ECB to call again
- desks get calls from hedge funds look for bids
- desk call ECB, but find out they are done buying for the day
- dealer tries to find some clients who haven't figured out the ECB is done for the day
- and sell their excess inventory to them
- everyone goes back to waiting for a new ECB rumor, because the market is weak and
- everyone is caught long again.
It is getting scary that there is no way to tell if the market is really improving. The ECB has corrupted the price discovery process so much that no rally is believed.
Protests in Greece and Italy continue. I'm not sure that they are bigger or smaller than before the technocrats came into power, but they shouldn't be ignored. The Spanish elections could be interesting as well, in any case, it will be hard to put a technocrat in charge of Spain so soon after an election. I am sure the other leaders in Europe are watching the results closely.
Is the ECB going to lend money to the IMF? Who knows, and who knows if it is lending trillions or if it is just lending the money the IMF has already committed to? Don't forget, the European nations in the IMF and the US are not keen to actually go to the markets so they can borrow money to give to the IMF. I suspect, if the ECB does finance the IMF, at least part of it will be to fund existing commitments that its members don't have the cash for.
The world seems to be splitting into two camps. Those who generally called the deterioration in Europe and saw the flaws in the plans to "fix" it. And those who didn't. Of those analysts who saw the path, saw what was happening in Greece, saw how EFSF actually fanned contagion, how austerity wouldn't work, and wondered why Italy and Spain weren't being pressured to do anything, at least half of them adamantly oppose printing money. These people who seem to have been right, are saying that printing and using the ECB is a bad idea. Of those who got it wrong, let's say Sarkozy, they are all over using the ECB and printing. The guys who have been wrong, wrong again, wrong some more, wrong once again, are the ones who are saying that ECB monetization is the best solution. Why should we believe them? It seems a bit like making the kid in the corner with the dunce hat the teacher.
There is a lot of hope that some sort of announcement will be made today. Failing that, there is hope that a weekend meeting will be scheduled, so we have a reason to be long coming into the weekend. I think we are getting close to seeing some sort of government action - new and bigger swap lines, an emergency rate cut or something, but I'm guessing it comes next week, and doesn't do much for the market. I think we are a long way from getting the ECB to fully turn on the printing press, and continue to hope that some alternative path is found. I really think that in the long run, some defaults will lead to a much better future, than printing will.
I guess we could be pleasantly surprised by the "super-committee" but somehow I doubt that too. Who came up with the name "super-committee" anyways? When we were kids, no one was allowed to create their own nickname.
http://jessescrossroadscafe.blogspot.com/
Posted on November 18, 2011
US Corporate Taxes As a Percent of Corporate Profits
"Once upon a time, the corporate income tax generated a significant share of tax revenues; now, it’s bumping along in the 2%-of-GDP range. Yes, the marginal rate of corporate income tax is high, at 35%. But US companies are extremely good at not paying that.
But at least we know the aggregate amount that corporations pay in taxes. What we don’t know — because they won’t say, and no one’s forcing them to say — is how much any given public company pays.
Allan Sloan has a very good column on this today. Companies already report 16 different tax metrics; they should simply be required to add a 17th — the amount they pay the IRS in taxes — which in many ways is most important. The companies already file tax returns; the number’s right there, on lines 31 and 32. They just refuse to say what it is."
Charts of the day, Corporate Income-tax Edition, Felix Salmon
One thing that is true is that the US has a high 'headline' corporate tax rate at 35%. This was used to justify the distribution of corporate profits as dividends that were made tax free.
But like most things in America, the headline numbers are one thing, and the reality behind the headlines is a very different picture. Some of the loopholes that allow 'offshoring profits' are eating like acid into the real economy. Why is this? As Jack Abramoff recently admitted, Congress is a willing vassal to the monied interests.
"During my years as a lobbyist, I saw scores of congressional staff members become the willing vassals of K Street firms before soon decamping for K Street employment themselves. It was a dirty little secret. And it is a source of major corruption in Congress."
And nothing will make this more clear than the discussions about the US budget. All politicians will work for tips and favors and campaign funds. But if you cannot spot who is on the full-time payroll of the 1 percent, then you might need to change your news channel.
The corporate propagandists do a good job of managing the American people. As one of the more pre-eminent of the pigmen once privately told me: 'Old people are the easiest to handle. You just scare them.'
Greed draws people in, and fear keeps them in line. Its a well-worn script. It is the basis for most ponzi schemes and financial frauds. It is the well-spring of a credibility trap.
The reporting on NYC financial TV was particularly repugnant this morning, as they called the OWS movement over, with nothing left but a few professional agitators.
They contrasted its lack of strict purpose and organized ideology with the much more compliant Tea Party Movement, that allowed itself to be reorganized around corporate advertising principles. It morphed from a financial reform movement into obedient lobbyists for the Koch Brothers and the monied interests.
And it angers the Wall Street demimonde that the loose organization of OWS does not permit an easy foothold with a few influential leaders that can be easily bought and scripted.
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Animating New York City's <b>News</b> - NYTimes.com
A Hong Kong-based company, Next Media, that has turned major news events into popular animated videos has now set up an office in New York City.
Animating New York City's <b>News</b> - NYTimes.comDenver Broncos <b>News</b>: Horse Tracks - 11/19/11 - Mile High Report
Your daily cup of orange and blue coffee. Horse Tracks!
Denver Broncos <b>News</b>: Horse Tracks - 11/19/11 - Mile High Report2011 PokerStars.com European Poker Tour Loutraki Day 4: Ziyard <b>...</b>
A recap of Day 4 of the PokerStars.com European Poker Tour Loutraki Main Event where the final table is set and Zimnan Ziyard leads the way.
2011 PokerStars.com European Poker Tour Loutraki Day 4: Ziyard <b>...</b>
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