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FASB chairman Herzl says there is room for use of "appropriate judgement" and flexibility in use of mark to market accounting rules, and the idea is to get a fair price of the asset. When there are illiquid markets cash flows from the asset can be used to get a fair price. When the borrower behind the assets has weakness this can be reflected in the fair value of the asset. The idea is not to let the illiquid market lead to an irrationally low price of the asset on that count alone. Congress is looking for faster action from the FASB, to introduce flexibility that doesn't lead to irrationally low prices for assets, exacerbating the down market. Herzl says he will give more guidance in about 3 weeks.

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401 K catchup contributions for people over 50 years will be put under new restrictions for IRS rules for 2026. Under new rules any catch up contributions for earners above $145,000 will have to be made in an account which pays taxes up front into a Roth Account.

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Washington Post Editorial Board on the importance of federal workforce being based on performance and laying off or force reduction of  underperforming workers, not protecting workers with seniority. The Office of Personnel Management (OPM) of the US government has taken a sensible action, says The Post in proposing to federal agencies that they layoff low performers first. Under the Biden administration the longest serving employees often the highest paid were not laid off, even if they were not productive. Agencies reduced workforce based on a complicated formula that heavily weighted seniority. The new rule will give performance the largest weighting. As OPM puts it: “By elevating performance in the order of retention, the employees who are best contributing to the mission will be more likely to be retained during restructuring.” Department of Government Efficiency government cuts were for 90% of the 2025 cuts due to voluntary programs such as buyouts, says The Post.  ...

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The European Commission has proposed a 9 month limit for vaccination validity for travel to and within the EU. If approved by EU ministers non EU travelers and travelers within the EU will be required to show they had booster shots once original vaccination status is more than 9 months old. 

The current practice of countries being added and dropped from red lists will be dropped and instead of 27 countries in the EU having a confusing set of their own restrictions, a uniform set of rules will apply for the whole of the European Union. Six months are set for waning immunity from the vaccinations and three months were added to give countries more time to prepare their booster shot vaccine campaigns.

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Irwin says about the revised Basel III rules in Jan. 2013- one hopes that Mervyn King of the Bank of England and Basel regulators are doing the right thing, striking the right balance between pushing for higher capital requirements and adjusting this to take into account the stalling economies of Europe and the U.S. Banks were given till 2019 to meet capital requirements. More assets are now eligible to meet capital requirements (including lower rated corporate bonds) under revised Basel III rules. The large legal settlements and speculative losses of large banks in Europe and the U.S. in 2012 put more pressure on banks with the risk of reduced lending.

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The ruble goes from a low of 80 to the dollar in Dec. 2014 to 50 to the dollar by May 2015. The euro also strengthens against the dollar with weakening economic conditions in the U.S. leading to a reversal in the strength of the dollar.

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Anne Lukits brings this exceptional bit of evidence about improved parenting and family life. Only about 15% of families in a University of British Columbia research study had fathers who shared equally in household work with mothers. About 65% of fathers and 14% of mothers reported inconsistent behaviour about their beliefs in gender roles and how they acted at home. Girls were seen as more likely to pursue careers in science and nontraditional fields if fathers played out their beliefs in real life by taking active part in household work, from doing the laundry, washing dishes, vacuuming and cooking meals. The study is discussed in the August 2014 issue of Psychological Science. This means that only one in four fathers who believe women should not have to do all the household work and work outside in paid jobs, actually play their beliefs out in real life roles in the home by sharing in the household work. Other aspects of this that are still to be researched are how much an active role by fathers in the home can improve the number of meals that are home cooked with fresh ingredients, with fathers taking daughters or sons out to fresh food markets, which have a significant bearing on how families can eat healthy and pass this onto the next generation. An unnoticed aspect of this is that it improves the overall quality of life for families through healthy eating and healthy living. When companies recognize this and encourage their employees with some extra time for family acitivity and work the overall benefits would include- healthier employees able to do more productive work in shorter time, less paid for employee medical coverage, and healthier members of society....

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Christopher Wood points to deflationary trends in Europe and the USA. Bank for International Settlements (BIS) data shows European bank exposure to government debt in Portugal, Italy, Ireland, Greece and Spain at $2.8 trillion at the end of 2009, and a rise in the London interbank offered rate (LIBOR), as further signs of negative trends. The property bubble in China and strong action to tighten and use antispeculation measures have already led to transaction volumes in residential real estate falling rapidly. If Beijing reconsiders further appreciation of the yuan, a trade debate with the U.S. may intensify. All this points to increasing risk of a double dip recession.

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According to pollster Rasmussen Reports some 51% of voters say they trust Democrats more on the economy vs. 38% for the Republicans as the global financial crisis deepens. What this means is the possibilty that Democrats could have a filibuster and veto proof majority in the Senate and large majority in the House of representatives. Spending will be restrained because of the money going into bailig out the economy but some measures could very well move forward like changes in bankruptcy law, lower drug pricing and what medicare pays for drugs, taxes on windfall profits and taxing private equity partners at higher rates than the capital gains rates they pay now, and action on a range of energy issues including solar and wind.

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The U.S. Federal Reserve gives banks 2 more years to sell their stakes in private equity, venture capital and hedge funds under the Volcker Rule. This extends the deadline for divestiture to 2017 from 2015. The reason given is that it will reduce the disruptive effects of large divestitures on markets.

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James Grant reviews the book by University of Chicago Professor Bernard Harcourt, "The Illusion of Free Markets." Harcourt points out that free-range capitalism, with no controls or rules, is a myth. Harcourt says that the state is present in all markets. There is no free enterprise, only the fable. It is the government that grants a charter to the Chicago Board of Trade, the government lays down the rules for a futures contract, and the government protects the property interests of wheat wholesalers. Grant says that the "illusion" of free markets may just be the American people's collective aspiration to less government and more individual liberty.

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Melania Trump and her documentary "20 Days to History" with Amazon support in production and marketing. Melania says at the premier that she wanted to show what it was like to be in her role, to "show other people what it takes to go from being a private citizen to first lady again." Melania has been underestimated and has shown leadership in mental health issues, on how internet and social media affects children, on housing in disaster relief, and on a range of issues that affect women and children. She also brings originality in her thinking about issues. For someone from Slovenia to come to the US as an immigrant and to be thrust into roles that she never would have anticipated she has shown exceptional composure and ability to learn and absorb from events happening so quickly around her. TR would have recognized her abilities and her softspoken and effective ways to assert herself on issues relating to the social media and how it affects children, one of the key issues facing the US for the next generation. ...

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An obscure parliamentary precedent was used by Speaker Bercrow to end Theresa May's strategy of repeated votes in Britain's parliament to browbeat reluctant Brexiters to vote for her negotiated settlement with the European Union. The precedent was set as far back as 1604 and was designed to protect the powers of parliament in the face of a Scottish royal assuming the role of sovereign of Britain. Repeated votes on the same proposals are not allowed if the intention is to find ways to get reluctant members of parliament to vote in favor, essentially by bullying them into this. This is also why Brexiter MP's have hailed the Speaker's decision in their opposition to Theresa May. Britain's constitution is based not on a single document like the U.S. Constitution. It is based on a a collective set of laws and precedents. A parliamentary rule book published by Thomas Erskine in 1844 sets out these rules in 1097 pages, available for 439 pounds in parliament's bookshop. It has gone through 24 editions. Speaker Bercrow says of the rule he was referring to as a statement on page 397 of the 24th edition.  There is not much time, just 10 days, for prime minister Theresa May to end the current parliamentary session and call a new one to nullify Speaker Bercrow's decision. This would also further antagonize the 40 Brexiter MP's led by Mr. Jacob Rees-Mogg and Boris Johnson in May's own party, making it impossible for parliament to agree on a course of action. ...

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The Basel 3 Rules and the extra capital cushions required by 2019, will double the amount of core equity a big bank holds as a proportion of assets. This is happening earlier because markets are making banks increase their capital cushions. But more needs to be done to make "too big to fail" banks in the U.S. and Europe safer, says the Economist in a May 2011 special report on international banking. An independent commission in Britain has suggested an additional equity buffer of 3%. The Economist says the Basel committee should consider similiar rules for the largest banks. Another proposal is being considered by Swiss regulators who want to see their banks holding the equivalent of 9% of their risk weighted assets in convertible capital. This kind of buffer is considered essential to prevent the kind of sudden collapse of the global financial system that was seen in late 2008.

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Kashmir region has a long history that has been lost in the coverage since 1947 as the colonial rule ended in the region with intermittent peace and conflict. For 7 centuries since 100BC there was Hinduism from the Vedic period, then Buddhism, followed by 7 centuries of Shiva religion, till the 15th century. In the 15th century  Islam entered the region for 3 centuries till the Sikhs and Sikhism a religion around deity Ram around 1819, and the British after 1850. The British set up a protectorate in Kashmir under the British Empire ruled by a Sikh king from 1850 to 1948. What this says is that after a unsettled period till 1948 to 2020, the region is likely to return to its history of tolerance for different people from South Asia, with one huge difference, the rapid modernization of the region in the 21st century replacing the feudal poverty and backwardness of a overtaxed and underdeveloped farmers communities. This is a trend back to Kashmir's true history over 15 centuries since 100BC which is irreversible. ...