LyrArc Article Gist
The Canadian banking system with fewer banks and 5 large banks operating throughout the country from coast to coast, and strictly regulated by the federal government, with a riskaverse philosophy of banking and bigger capital requirements, is emerging as one of the sounder banking systems in the world today. The US may find some aspects like the small number of large banks operating in the whole country and regulation by the federal government based on a strict risk averse philosophy.

LyrArc Article Gist
Chrysler is beginnning the effort to cut dealership that aren't sellin enough cars. Note the figures for dealerships, GM 6900, Ford 4200, and Chrysler 3700, Toyota 1400 for market share, GM 23%, Ford 16%, Chrysler 14%, Toyota 16%, This comes to 300 delaers per market share point for GM 280 for Ford, 270 Chrysler, 90 for Toyota. Lower producing dealers and surplus dealers undercut prices of stronger dealers and everyone in general.

LyrArc Article Gist
Analysts do not see how Greece could avoid restructuring its debt. Debt for Greece is expected to grow in coming years. The 110 billion euro bailout of Greece by the European Union and the IMF does not reduce Greek debt- as the bailout comes as more loans. The EU estimate is that Greece's debt will go up to 375 billion euros in 2013 from 298 billion euros in 2009. Kenneth Wattret, chief euro-zone economist at BNP Paribas, says the markets are already pricing in some form of restructuring. This would include some form of "haircut" for bondholders. A restructuring presents several problems. Brussels think tank Bruegel estimates 20% of Greece's government debt is held by local banks which are weak financially. These banks will need some help if they are to take new losses. About one third of Greece debt is held by pension funds and insurance companies and these institutions may have to be stress tested before taking losses. And 80 billion of the bailout money came from euro-zone countries as direct loans, this would mean losses for these lenders....

LyrArc Article Gist
These lead cables are what is left of the old cables laid decades back by the Bell regional phone network. They are underwater, in the soil an d on poles overhead. As the lead erodes and disintegrates it contaminates the water and the soil. Unsafe levels of it are found in 44 of 130 underwater sample sites tested by independent labs for the WSJ. It has tainted spots such as popular fishing locations, in front of schools and in playgrounds. It was found in the Willamette River in Oregon, in the Mississippi river banks in Louisiana, in the Detroit River in Michigan and the Passaic river in New Jersey. 

LyrArc Article Gist
Priti Patel, former UK Home Secretary, calls Nigel Farage's comments on UK riots about two tier policing "deeply misleading" and not relevant right now.  Patel told Times Radio: “There’s a clear difference between effectively blocking streets or roads being closed to burning down libraries, hotels, food banks and attacking places of worship. What we have seen is thuggery, violence, racism." The riots started after stabbings by a youth at a Southport U Taylor Swift themed dance and yoga party for elementary school children. Misinformation spread about the identity of the attacker. Riots happened in Nottingham, Liverpool, Hull and other cities. 

LyrArc Article Gist
A 5% wage hike in Japan in 2023 for workers was the largest in 33 years. The central bank of Japan now supports a 5% wage hike in 2024 that unions are negotiating.

LyrArc Article Gist
Canada is joining a club of nations that are dependent on exports of raw materials to China for growth- Australia, Brazil, Malaysia and Peru. This means that Canada's central bank takes its cues from demand in China, India, Korea and other emerging economies when it sets rates. With Canada's growth at around 3.1% in 2010, Canada's central bank is expected to increase rates gradually even as the U.S. keeps its rates low.

LyrArc Article Gist
The Indian economy is expected to grow by 8.5% this year compared to 6.5% in 2009. But a major problem looms in the high inflation facing India. The poor monsoon in 2009 led to higher prices for foodgrains, lentils, and sugar. And the government's cut in the fuel subsidies will lead to more efficient use of energy, but will lead to one additional percentage point in wholesale price inflation according to the Reserve Bank of India, India's central bank. The whoesale price index in India went up by 10.5% in June from the prior year, and this after a 10.1% increase in May. Bloomberg's tracking of consumer prices in the Asia-Pacific region shows India at the top of 17 countries in inflation, and consumer prices paid by industrial and farm workers in India are shown to be increasing at 14% annually. The government is coming under criticism for not releasing more grains from its stocks to soften the impact of last year's monsoon. The Manmohan Singh government finds inflation at above 10% unacceptable and is looking for further action from the central bank. Reserve Bank of India governor Subbarao has raised rates 3 times since March 2010 to 5.5%, and a further increase is expected at its next meeting on July 27. A better harvest in September, from a better monsoon season, could help lower food prices. If this does not happen, more tightening by the central bank could hurt economic growth, putting the government in a quandary....

LyrArc Article Gist
How Sweden in 1992 and is Finance Minister Lundgren faced a similar crisis in its banking system after a housing bubble in that country collapsed. At that time the way Sweden approached it set aside 65 billion kronor or $11.7 billion dollars then or $18.3 billion in today's dollars, 4% of its gross domestic product, for rescuing failing banks. The US plan for $700 billion is roughly 5% of gross domestic product. But the way Sweden did it it extracted full price from shareholders and rescue was arrranged only after the Swedish government got a big equity share in the banks that were rescued. Lundgren is concerned that the US plan does not provide for the US government to take big equity stakes in the banks that receive government money. By selling off these shares in better times the government of Sweden has recovered most of the money depending on how its calculated. However the US government has taken big ownership stakes in Fannie, Freddie, and in AIG. And the plan is not yet spelled out. In terms of its size its similar to the Swedish plan an in this sense its similar, a big government effort to take a decisive and complete approach to the problem. In the short run this may create problems for the dollar according to currency experts like John Taylor, but some experts like currency strategist at Deutsche Bank think that in the longer term this rescue plan hel[ps American macroeconomic fundamentals and in doing so will help the dollar. Another factor is the European economy and as Europe also faces some problems of its own, from a housing bubble standpoint Britain, Ireland and Spain fall in the same boat as the Americans, and Germany may also have some bad loan problems of its own, so the macroeconomic fundamentals may weaken in Europe over time and this might also favor the dollar vs the euro in the longer term. ...

LyrArc Article Gist
Senator Warren (Democrat) and Banks (Republican) in Congress in bipartisan action to protect in the transfer of US technologies ro competitors.