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ECB's Targeted Lending Spree Starts Out As Flop; Modern Monetary Insanity

MishTalk

Following on the "success" of the ECB''s LTRO (Long Term Refinance Operation) which did nothing to spur lending and everything to create the biggest sovereign bond bubble the world has ever seen, ECB president Mario Draghi announced a TLTRO or Targeted LTRO on September 4. If they miss the targets, they must pay the funds back in 2016.

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Why Financial Statements Don’t Work for Digital Companies

Harvard Business

Similarly, Microsoft paid $26 billion for loss-making LinkedIn in 2016, and Facebook paid $19 billion for WhatsApp in 2014 when it had no revenues or profits. This becomes clear when you look at a company’s two most important financial statements: the balance sheet and the income statement.

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Persistent Overoptimism Three Ways: Truckers, Fed Economists, Manufacturers

MishTalk

As surface transportation’s peak period ends for the year, and trucking eyes the traditionally slowest time for the industry as first quarter 2016, economic signals are, at best, mixed. Operating revenue decreased 15.9 Visit [link] to learn more about wealth management and capital preservation strategies of Sitka Pacific.

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Inequality Isn’t Just Due to Market Forces — It’s Caused by Decisions the Boss Makes, Too

Harvard Business

In such a system, employers protect workers from many of the vagaries of market forces; they take a longer-term perspective on firm performance, and favor corporate strategies that necessitate a stable, well-trained, and loyal workforce. There was also variation in whether these capital investments led to workforce reductions.

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ECB's €40bn Stimulus Gamble: ECB Pulls Out Bazooka, Cuts Rates, Buys Assets; Will this Stimulate Lending?

MishTalk

Governing Council decided today to lower the interest rate on the main refinancing operations of the Eurosystem by 10 basis points to 0.05% and the rate on the marginal lending facility by 10 basis points to 0.30%. The projections for 2015 and 2016 have remained unchanged. on funds parked with the ECB. in 2014, 1.1% in 2015 and 1.4%

Banking 74
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Shockingly Bad Fiscal Health of Chicago (and the Financial Engineering Chicago Uses to Hide that Fact)

MishTalk

The Corporate Fund is Chicago’s general operating fund. Chicago’s property tax revenues do not go into its general operating fund. The objective of these deals was to provide budget relief for the city’s general operating fund in the short term, even if the structure means escalating debt service payments in the long term.

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As European Banks Retreat from the World Stage, China Is Stepping Up

Harvard Business

Stung by a series of risky foreign adventures that came back to bite them, most large global banks in Europe and the United States have retreated from foreign operations. This suggests that while some parts of the banking industry are revising their strategies, financial globalization is very much intact, and indeed becoming more inclusive.

Banking 28