Lunes 10/10/11 Comienza el reporte de utilidades

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Merkel y Sarkozy se comprometen a tener un plan contra la crisis antes de final de mes

Dow Jones Newswires

BERLÍN (EFE Dow Jones)--La canciller alemana Angela Merkel y el presidente francés Nicolas Sarkozy se comprometieron el domingo a hacer lo que sea necesario para estabilizar la eurozona y presentar un paquete conjunto de medidas para finales de octubre.

"Estamos decididos a tener una solución sostenible y coordinada para finales de este mes porque Europa debe tener sus problemas resueltos para la cumbre del G-20 en Cannes [3-4 de noviembre]", dijo Sarkozy.

Los dirigentes de Alemania y Francia dijeron también que se asegurarán de que los bancos europeos disponen de suficiente capital para hacer frente a cualquier impacto que esté relacionado con la crisis.

"Estamos decididos a nacer lo que sea necesario para garantizar la recapitalización de nuestros bancos", dijo Merkel a la prensa antes de la cena de trabajo con Sarkozy. "Haremos propuestas en un paquete coordinado que permitirá una cooperación más estrecha entre los países de la eurozona que incluirá cambios de los tratados".

"También estamos de acuerdo en reforzar la estructura de capital de los bancos en Europa. Nuestro acuerdo es total y trabajaremos mano a mano con las autoridades europeas al respecto", dijo Sarkozy

Merkel y Sarkozy no quisieron dar más detalles sobre la forma en que se disponen a recapitalizar la banca.

En cuanto al posible impago de Grecia, Merkel y Sarkozy reiteraron que deben esperar a conocer el informe de la troika y su confianza en que el grupo formado por la Comisión Europea, el Banco Central Europeo y el Fondo Monetario Internacional encuentre una solución a la crisis de deuda soberana de Grecia.

"Creemos que la troika propondrá una solución sostenible para Grecia", dijo Sarkozy. "Estamos trabajando estrechamente con la troika. Grecia forma parte de la eurozona y encontraremos soluciones para asegurar la estabilidad financiera de Europa y una solución a largo plazo para el problema de Grecia".

Sin entrar en detalles, Merkel y Sarkozy sugirieron que la profundización de la unión política de Europa está en la agenda y que podría haber cambios en los tratados actuales para mejorar la integración de la eurozona.

"Debemos proponer una aceleración de la integración de la eurozona que incluirá cambios significativos para que el sistema europeo sea más efectivo".

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Au down 1,635.80

Oil up 82.98

+20

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En Setiembre de 1983, cuando Reagan hacia salir de la recesion al pais con sus politicas pro-crecimiento se crearon 1.1 millones de empleos. Pero eso era 1983 y Obama no es Reagan.

Las minorias son las mas afectadas, el desempleo se manutvo al 9.1% pero para los negros es 16% y para los hispanos es 11.3% y para los jovenes es 24.6%

103,000 vs. 1.1 Million
A tale of September jobs, 28 years apart

Yesterday's September jobs report was a welcome surprise, a signal that another recession may be averted. With 103,000 new jobs in the month and an upward revision of 99,000 for July and August, the jobs picture looks less bleak than it did a month ago. More Americans also started looking for work and the labor force expanded by 423,000, according to the Labor Department's household survey.

Steve Moore on the jobs report. Plus, studies show more Americans receiving government benefits and paying no federal income tax.
..However, the unemployment rate held steady at 9.1%, some 6.2 million Americans have been unemployed for more than six months, and the economy is producing far fewer jobs than you'd expect in a typical recovery from recession. Over the past six months the U.S. economy has created an average of 72,000 jobs a month, roughly half the pace needed to chip away at the jobless rate. The hardest hit have been minority workers, with the jobless rate for blacks still 16%, Hispanics 11.3%, and teens 24.6%.

As it happens, the biggest one-month jobs gain in American history was at exactly this juncture of the Reagan Presidency, after another deep recession. In September 1983, coming out of the 1981-82 downturn, American employers added 1.1 million workers to their payrolls, the acceleration point for a seven-year expansion that created some 17 million new jobs.

The difference between then and now isn't the magnitude of the recessions but the policies the U.S. pursued to restore growth. In the Reagan expansion, spending and tax rates were cut, regulations were eased, and government was in retreat. Today, we've had a spending and regulatory boom, the threat of higher tax rates, and a general antibusiness political climate. Policies have consequences.

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Los futures del Dow Jones 91 puntos al alza.

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Euro up 134.23

Yen down 76.79

Kospi +0.86%, Australia +0.68%

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Copper October 09,20:38
Bid/Ask 3.3128 - 3.3148
Change +0.0115 +0.35%
Low/High 3.2966 - 3.3172
Charts

Nickel October 09,20:36
Bid/Ask 8.5150 - 8.5830
Change +0.0680 +0.81%
Low/High 8.4469 - 8.6284
Charts

Aluminum October 09,20:31
Bid/Ask 0.9814 - 0.9834
Change +0.0034 +0.35%
Low/High 0.9772 - 0.9839
Charts

Zinc October 09,20:38
Bid/Ask 0.8632 - 0.8671
Change +0.0042 +0.49%
Low/High 0.8568 - 0.8675
Charts

Lead October 09,20:38
Bid/Ask 0.8942 - 0.8987
Change +0.0066 +0.74%
Low/High 0.8819 - 0.9010

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Treasurys Price Chg Yield %
2-Year Note* -2/32 0.296
10-Year Note* -23/32 2.068
* at close

11:59 p.m. EDT 10/09/11Futures Last Change Settle
Crude Oil 83.64 0.66 82.98
Gold 1652.8 17.0 1635.8
E-mini Dow 11183 117 11046
E-mini S&P 500 1168.25 13.25 1157.50

12:09 a.m. EDT 10/10/11Currencies Last (bid) Prior Day †
Japanese Yen (USD/JPY) 76.73 76.77
Euro (EUR/USD) 1.3456 1.3377
† Late Friday in New York

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+116

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Asia-Pacific
INDEX VALUE CHANGE % CHANGE TIME

HANG SENG INDEX 17,589.90 -117.07 -0.66% 23:51
S&P/ASX 200 INDEX 4,198.30 35.40 0.85% 00:05

[admin]

Copper October 09,23:59
Bid/Ask 3.3047 - 3.3077
Change +0.0034 +0.10%
Low/High 3.2961 - 3.3586
Charts

Nickel October 09,23:47
Bid/Ask 8.4157 - 8.4515
Change -0.0313 -0.37%
Low/High 8.3789 - 8.6284
Charts

Aluminum October 09,23:46
Bid/Ask 0.9868 - 0.9882
Change +0.0087 +0.89%
Low/High 0.9772 - 0.9896
Charts

Zinc October 09,23:55
Bid/Ask 0.8654 - 0.8671
Change +0.0064 +0.74%
Low/High 0.8568 - 0.8758
Charts

Lead October 09,23:46
Bid/Ask 0.9037 - 0.9055
Change +0.0161 +1.81%
Low/High 0.8819 - 0.9123

[admin]

Cada dias emergen mas pruebas de lo equivocada que fue la inversion en Solyndra.

Cuando el gobierno invierte $525 millones en una compania perdedora, no solamente bota a la basura el dinero de los contribuyentes Americanos si no que niega capital a otros proyectos exitosos en el sector privado.

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The Solyndra Economy
Administration emails reveal the reality of politicized investing

The more we learn about the Solyndra solar-company debacle, the more the Obama Administration leaps to defend the $535 million loan guarantee. "There were going to be some companies that did not work out; Solyndra was one of them," President Obama told reporters Thursday. Earlier in the week he told ABC News "if we want to compete with China, which is pouring hundreds of billions of dollars into this space . . . we've got to make sure that our guys here in the United States of America at least have a shot."

And there you have America's Solyndra economy, as the White House understands it: Washington allocates capital, and taxpayers pick up the tab if those choices go bust. Through this political lens, the August bankruptcy of the Fremont, Calif. company was a necessary casualty in the greater campaign to steer the U.S. economy toward Mr. Obama's noble goals. Private competition that winnows out losers is so yesterday.

As it happens, we're getting a look at what this world of political investment entails thanks to Administration emails released last week by House Democrats on the Subcommittee on Oversight and Investigations and the White House. Democrats say the emails reveal a "vigorous internal debate" about the Solyndra deal and dispel accusations of crony capitalism.

The opposite is closer to reality. Solyndra received federal help in 2009 and never turned a profit. In March 2010, PriceWaterhouseCoopers raised questions about the company's solvency. The next month, a White House Office of Management and Budget staffer worried that the Department of Energy "has one loan to monitor and they seem completely oblivious." Another said it was "terrifying" to consider that some of DOE's next projects would make Solyndra look "better."

Insiders raised alarms, too. Obama donor and venture capitalist Steve Westly wrote to senior White House aide Valerie Jarrett in May and said "many of us believe the company's cost structure will make it difficult for them to survive long term." Ms. Jarrett wrote to Vice President Joe Biden's chief of staff, Ron Klain, who contacted the Department of Energy. But DOE expressed confidence in Solyndra, with one official noting that "we believe the company is okay in the medium term, but will need some help of one kind or another down the road."

Instead of launching a more serious inquiry, Mr. Klain supported a pending Presidential visit to Solyndra's factory, advising Ms. Jarrett of "risk factors" but adding that "it looks like it is OK to me, but if you feel otherwise, let me know." Ms. Jarrett replied "I'm comfortable if you're comfortable," and Mr. Klain responded, "The reality is that if POTUS visited 10 such places over the next 10 months, probably a few will be belly-up by election day 2012—but that to me is the reality of saying that we want to help promote cutting edge, new economy industries."

Here's more "reality." On August 20, 2009, a DOE staffer asked "how can we advance a project . . . that generates a working capital shortfall of $50 [million] when working capital assumptions are entered into the model?," adding "it also simply won't stand up to review by oversight bodies." Solyndra's federal loan guarantee closed the following month.

Then there are the still-hazy insider dealings, another inevitable feature of government-led investment. An Obama fundraiser, Steven Spinner, took an advisory role at DOE and pushed for the loan to proceed, even as his wife's law firm advised on the same deal. (DOE and the couple deny any undue influence.) Earlier this year, DOE reworked the Solyndra loan guarantee as the company floundered and put private creditors ahead of taxpayers. This newspaper reported Friday that Treasury raised alarms about the legality of such a move, although it's unclear when that happened.

Brad Jones of Redpoint Ventures got to the heart of the Solyndra economy in a December 2009 email to then-National Economic Council director Larry Summers: "The allocation of spending to clean energy is haphazard; the government is just not well equipped to decide which companies should get the money and how much . . . One of our solar companies with revenues of less than $100 million (and not yet profitable) received a government loan of $580 million; while that is good for us, I can't imagine it's a good way for the government to use taxpayer money."

Which is precisely the point. The emerging sophisticated defense of Solyndra is Mr. Obama's suggestion that if China subsidizes its industries "of the future," then we must too. But in a free-market economy, which America used to be, private investors decide which industries will succeed in the future, and bet their own money on it. The proper role for government is to support basic research, not commercial ventures that become exercises in taxpayer risk but private reward.

When government takes $535 million and invests in a loser, it not only wastes taxpayer money but it also denies that capital to some other project in the private economy that might have succeeded. The Solyndra emails show how ill-equipped government is to predict the industries of the present, much less the future.

[admin]

Desde el inicio de la crisis el sector privado ha perdido 8.3millones de empleos, el gobierno contrato 600,000 en el sector publico y solo ha despedido a 1.3 millones de empleados, eso es menos del 5% del total de los empleados del gobierno, en el sector publico se ha despedido al 8% de la fuerza laboral.

Obama's Selective Memory
The president has cherry-picked his jobs statistics. Here's a more complete picture

By ALLYSIA FINLEY
"The biggest problem that we've had in terms of unemployment over the last several months has not been in the private sector," said President Obama at a press conference yesterday. "It's actually been layoffs of teachers and cops and firefighters. We created over two million jobs in the private sector -- a million jobs this year alone in the private sector, but in the public sector, we keep on seeing these layoffs having an adverse effect on economies in states all across the country." Yes, but the president has cherry-picked his statistics. Here's a more complete picture.

Allysia Finley on how Obama's jobs bill would stymie pension reform.
..During the recession, which lasted from December 2007 through June 2009, the private sector shed 6.3 million jobs even as governments added 600,000 jobs. In fact, governments increase their payrolls even as their tax revenues shrunk. Thirty states raised fees and taxes between 2007 and 2009. And almost all of them used gimmicks to kick their budget problems into the future. Several skipped pension payments, accelerated revenue collections (e.g. using 13 months of revenue to fund 12 months of spending),and shifted earmarked fees to their general funds. Don't forget that the stimulus act provided $140 billion in aid for states to cover their budget deficits.

Most businesses (aside from the big banks, GM and Chrysler) didn't have a federal government backstop. They also couldn't raise their prices as easily as governments could increase taxes or fees. Nor could they use suspect accounting maneuvers to cover their shortfalls without running afoul of federal regulators. Thus most private employers had no choice but to cut their costs by laying off workers. Between the start of the recession and December 2009, businesses cut 8.3 million jobs -- 8% of the private workforce. Governments have shed 1.1 million jobs in the last two years, but that's still just 5% of the public workforce.

The public sector's situation is worse than the private sector's only insofar as government pension and health liabilities are larger. For years, governments inflated and underfunded benefits and now the chickens are coming home to roost. Governments are finally coming to terms with these liabilities by asking their workers for concessions. Mr. Obama's jobs bill, which proposes $130 billion of aid for state and local governments, would obviate these reforms and take lawmakers off the hook for goosing workers' pensions in return for their political support. Paying governments to keep teachers and firemen on the rolls may sound good, but it actually creates a moral hazard.

To read more stories like this one, please subscribe to Political Diary.

[admin]

5:24 p.m. EDT 10/07/11Treasurys
    Price Chg Yield %
2-Year Note*   -2/32 0.296
10-Year Note*   -23/32 2.068
* at close
7:18 a.m. EDT 10/10/11Futures
  Last Change Settle
Crude Oil 84.41 1.43 82.98
Gold 1665.3 29.5 1635.8
E-mini Dow 11202 136 11046
E-mini S&P 500 1170.25 15.25 1157.50
7:28 a.m. EDT 10/10/11Currencies
  Last (bid) Prior Day †
Japanese Yen (USD/JPY) 76.73 76.77
Euro (EUR/USD) 1.3592 1.3377

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7:33 a.m. EDT 10/10/11Major Stock Indexes
Stock Market* 12020.46 -127.38 -1.05
Russell 2000* 656.21 -17.59 -2.61
Global Dow 1767.05 10.12 0.58

Stoxx Europe 600 233.48 1.49 0.64
UK: FTSE 100 5367.08 63.68 1.20

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Copper October 10,07:19
Bid/Ask 3.3334 - 3.3350
Change +0.0321 +0.97%
Low/High 3.2961 - 3.3586
Charts

Nickel October 10,07:18
Bid/Ask 8.5268 - 8.5359
Change +0.0798 +0.95%
Low/High 8.3789 - 8.6284
Charts

Aluminum October 10,07:19
Bid/Ask 0.9849 - 0.9857
Change +0.0069 +0.71%
Low/High 0.9772 - 0.9907
Charts

Zinc October 10,07:19
Bid/Ask 0.8654 - 0.8663
Change +0.0064 +0.74%
Low/High 0.8568 - 0.8758
Charts

Lead October 10,07:18
Bid/Ask 0.9043 - 0.9059
Change +0.0167 +1.88%
Low/High 0.8819 - 0.9123
Charts