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Anshu Jain, co-CEO of Deutsche Bank, will be replaced by John Cryan, a former UBS executive, who has no connections to investment banking. Deutsche Bank's investment banking operations would have to take on more leverage to be competitive with larger investment banks, according to experts. This would put the bank in serious problems with regulators. Another problem evident at the recent shareholders meeting is that the old management is perceived as part of the problem that led to large legal settlements with authorites. Anshu Jain leaves at the end of June, and the other co-CEO Jurgen Fitschen will leave in 2016. This closes a chapter in Deutsche Bank's history in which its image in Germany has suffered badly because of investigations.

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Members of the U.S. Congress lead a lousy life with life split between the capital and their home state location, most are weekend dads or moms. This makes them less likely to grasp the issues of work-life balance and the issues of parenting faced by average working families or couples with both parents working, says this essay in Politico magazine. This is true also of understanding issues facing women and mothers. Hard to believe but this report points out that Congress in the U.S. does not have a family friendly leave policy and no restroom for women till 2011 on the floor of the House. Similar issues face women in Japan and other countries for women in parliament. Former Speaker Ryan says he is tired of being a "weekend Dad." Senator Biden, former vice president says of his commute from Delaware to Washington D.C., he realized that "a child has a thought he wants to share and 12-18 hours later its gone, gone, gone." ...

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Administrative costs are one of the key reasons tution costs have increased to excessive proportions in the U.S., putting a heavy burden on the middle class, reducing social mobility that is an important aspect of postwar progress in Europe and the U.S. by putting college out of reach for millions of young people. This also creates a heavy debt burden for young people- U.S. student loan debt passed $1 trillion in 2012- who are less likely to buy a first home because of years needed to repay student loans. The market pressures to control costs do not exist in the same way as industries such as automobiles, because of the demand for college education in a modern globalized economy. Douglas Belkin and Scott Thurm have provided an indepth look at the University of Minnesota to show the spending surge and internal tendencies for faculty and bureaucracy to increase spending on hiring, building expansion to compete with other schools, and salaries to support their own within the college and university system, with a passive student community, and passive parent community, and lack of other outside pressures. Tution and fees for state residents doubled in the last decade at the University of Minnesota to $13,524. The figures tell the story- total debt with borrowing for building construction at U.S. 4 year public colleges tripled to $88 billion between 2002 and 2011, according to the Department of Education. Debt servicing costs doubled at the University of Minnesota to $106 million in that period. Minnesota's government provided $570 million for university operations in 2011, same as 2003-2004 school year even with inflation and 10% higher student enrollment. Yet analysis by the Department of Education and the Wall Street Journal shows in that period the spending increased disproportionately compared to inflation, student enrollment and teaching activity, with little restraint. WSJ analysis showed the University of Minnesota system added 1000 administrators between 2001-2011, with administration hires increasing 37%, double the increase in the students and double that of teachers. During that period the number of employees to manage people, programs and regulations went up 50% faster than the number of instructors, according to the Department of Education. Bureau of Labor Statistics cites this as the reason tution costs went up faster than health care costs. The 19,000 employee payroll at the University of Minnesota means one employee for three and half students. The new university president in 2011, Eric Kaler, interviewed by WSJ's Belkin and Thurm, says no one knew what it cost to run the school when he started....

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A delicate balancing act for the Federal Reserve, in not withdrawing support to the debt securitization markets in a manner that throws the economy off balance, and leads to the collapse of credit markets still again. Lee Sachs, an advisor to Timothy Geithner, Treasury secretary, says that its important to do it incrementally, where and when you think you can, and not sooner. The debt securitization markets act as a shadow banking system, they finance mortgages for homes, corporate loans, student loans, credit card debt. Before the debt crisis in 2008, banks made loans for mortgages, and then sold these loans packaged into securities in the debt securtization markets. 60% of American credit has in recent years come from this process of debt securitization. This is how the markets look at this time in September 2009. 1. A thriving private market in securities packaged out of home mortgages, collapsed from $744 billion in 2005 at the peak, to $8 billion during first half 2009. THe Fed is almost the only buyer of mortgage backed securities, with $905 billion of these government guaranteed securities purchased through mid September, 80-85% of the market. 2. The market for bonds backed by consumer debt - credit card debt, auto loans and student loans - has recovered to before the crisis. But this is only because of the government's Term Asset Backed Securities Loan Facility or TALF, which provides attractive government financing to buyers. Hyun Song Shin, a Princeton University economist, who is an expert in this area, says the big question is what happens without TALF, can the market stand on its own two feet or is it permanently hobbled. 3. The market for securities in commercial real estate loans has not seen any securties issued in two years. Overall says Robert Shiller, a Yale University economist, the security markets are dead, we are stuck in a situation where no one knows what will happen when the government gets out of these markets. The Fed will continue to support the mortgage markets till it goes from the $905 billion now to $1.25 trillion. At that point it will have to make some tough decisions, and banks are not lending, making it tougher for business. On top of this banks liquidity requirements are being increased after the G20 agreement, and Britain's FSA has already taken the initiative on this. And a further $50 billion in corporate real estate securities are to be refinanced in 2010, says CALPERS, Arnold Phillips. If there is no mechanism to address support here, these properties will default, leading to bank losses and even tighter credit. ...

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How the energy business sale of gas turbines to provide electricity in the middle east is boosting GE's energy business worldwide, increasing sales to over $20 billion in 2007, at the last peak in 2002 sales reached $22.5 billion for GE's energy business. Couple of things to note. GE's revenue is growing at about 20% a year in the middle east. Its sales in the middle east now exceed China's with $8 billion in Middle East for 2007 vs. 6 billion in China. By 2010 sales from China India Brazil and Middle East will total $50 billion compared to 30 billion today. thst is an increase of 67% over 3 years. Power is a big chunk of this in addition there are aircraft engines and health care equipment. See the other article on middle east growth July 19, 2007 WSJ. About half of the population of 300 million in the middle east is under 20 years of age. Also note the last runup in GE's stock price was from its surging energy business in the 1990's.

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Spanish banks conversion of deposit holders into equity holders and risk. Because preference shares counted as core capital Spanish banks issued 32 billion euros of such securities in 2007-2010. Depostors were given these shares in place of low interest bearing accounts. Now that these illiquid shares no longer count as core capital under Base III rules, banks are asking investors to convert these shares into common stock which helps banks boost their capital ratios.

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The 2002 decision for HSBC, a British bank, to buy Household International, which was into subprime lending in the USA, has turned out to be a disaster. Now it will close the 800 offices of Beneficial and Household Financial. HSBC's losses from Household are a big reason for the need to raise $18 billion in new capital. In getting into this business of subprime lending HSBC also sullied its high credit rating and its reputation. In doing so it also added its reputation to make it look like the subprime business was a good one and got it going in a big way. With the securitization process older standards of safety disappeared, as so called financial engineering and its engineers made it believable that inherent risk of a borrower's weak ability to pay could just be reduced or eliminated by packaging it differently and spreading it all around.

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The auto parts industry is seeing a huge transformation as American Axle, Visteon and other companies look to Europe, Asia and other countries for growth and shift to a lower cost manufacturing base overseas. Costs are in many cases about 5 times in the USA than in other countries in Asia. And health care costs are a major part of the costs the auto parts makers face in the USA. To get an idea of how fundamental a change is going on American Axle which in 1995 did not have a plant overseas now expects 75% of its $1.3 billion in product orders to be met by plants overseas. And it is planning to build plants in India and Thailand. Visteon which used to be part of Ford Motor and made parts like heating and cooling systems mainly for Ford, will by 2010 according to Visteon's CEO, have sales to Hyundai and Kia of 28% of sales, making the Korean company its largest buyer. Ford's North American operations will only account for 6% of sales from 15% today. That is a dramatic change and involves closing plants in the US. For Visteon this means $635 million in cost reduction mainly through plant closings in 2008-2010....

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The large response triggered on the internet by Anne-Marie Slaughter's article in the July/August 2012 issue of the Atlantic on women and work, how it is difficult for women to work and raise children without making changes in today's American society so that a healthy balance can be achieved.

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The Republican party (GOP) chances with Trump as the candidate in 2024 are seen with much skepticism by Karl Rove in the WSJ. Republicans need to keep the presidential field of candidates not too crowded for too long, as pluralities in primaries led to Trump winning a large share of delegates even with about one third of the vote in the early primaries for the 2020 election. Another challenge is the work of Trump supporting leaders in states such as Michigan who want to select delegates by convention and not through primaries. Ron de Santis, Governor of Florida, is seeking the Republican nomination, and faces a strong challenge from the former president. De Santis, 44 years, is from Dunedin, Florida, His mother was a nurse and his father installed Nielsen TV rating boxes, with great-great grandparents immigrating from Italy Benevento, Avellino) in 1904. He studied history at Yale and went to Harvard Law School, Navy Justice School after joining the Navy. De Santis was elected to the US Congress in 2014 and 2016 where he served as the chariman of the sub committee on National Security. He founded the Freedom Caucus in these years. In 2018 he ran for Governor of Florida winning by 0.4%, running again in 2022 he won by about 20 percentage points. ...

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With more women getting higher education and pursuing careers, young Chinese women now prefer to be independent and postpone marraige. This has important consequences including smaller households and lower demand for some products. Women now make up more than half of all undergraduate students and half of graduate students in China. Beyond pursuing a career many women also see the importance of a loving relationship before marraige as opposed to being introduced to someone and finding a partner to go through life.

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The 11th Annual State of the News Media Report of the Pew Research Center is optimistic about the future of the news media business and news organizations. The optimism centers on the new investments in the business leading to new hiring for Buzz Feed, Washington Post, and other organizations, the access to news media on the tablets and the smartphones, the new ways and tools used to reach a younger demographic, on line video clips on the digital websites which are drawing users away from the news cable networks with viewership of Fox, CNN and MSNBC declining 11%. Six of 10 adults watch video online and half of them watch news videos. Interactive data presentation is popular. Younger people of highschool or college age get news on Facebook and social media networks, another way of consuming news information. Especially useful are results of the Pew Center's research showing 68% of American adults connect to the internet on tablets or smartphones, and 31% of tablet owners telling Pew they were taking out more time for news information. The tablet is particularly well suited for news information, and as lighter, thinner, easier to hold and fit into a pocket tablets are designed at lower prices, this trend is likely to get stronger....

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Even with the growth strategies of the Abe administration in 2014, projections of the IMF show growth rate for Japan are at 1.0% for 2015, compared to 3% for the U.S., 2.5% for UK, and 1.6% for Germany. The Third Arrow in prime minister Abe's Three Arrows program now follows the implementation of the other two Arrows- monetary easing and public works spending. Abe is faced with the task of convincing foreign and domestic investors that he can implement a winning growth strategy for Japan. The plan announced in June 2014 is an effort to overcome barriers to growth with a strategy that will work. The core of the plan is to cut the corporate tax rate from 35.64% to below 30% in the next couple of years. The corporations are expected to do their part to improve corporate governance and return on equity, so that shareholders, domestic and foreign investors, have more incentives to invest in the Japanese stock market. Analysts and economists say this plan has attractive features. It asks Japanese companies to increase ROE and ROI to global levels through a Tokyo Stock Exchange corporate governance code. Companies listed on TSE and not following the code will have to come up with reasons why they are failing to do so. Some analysts say this would increase the value of companies. Companies are more likely to make investments with cash that is not being invested. The plan includes measures for bringing more women into the workforce, which is seen as a serious committment to women. In addition to increasing the number of child care centers, this plan includes tax revisions that benefit women joining the workforce. Increased representation for women at the executive level is also part of this plan. Hiroshige Seko, a top adviser to Abe, says importance was given to execution for results, so that a score of 80 with definite results was preferred to an uncertain attempt to get a 100. To do this some compromises were made. The plan for special economic zones is still in the drafting stage as discussion is just beginning. A shakeup of the Central Union of Agricultural Cooperatives and more flexible medical care will be taken up gradually. The efforts to increase ROI, ROE, and improve corporate governance were initiated from the time of the Koizumi administration, and the latest plan may bring results after over a decade of effort in this direction....

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Michael Fathers reviews two detailed accounts of Mao's Great Leap Forward. From 1958-62 Mao launched an effort to industrialize China in its effort to surpass Krushchev's effort to surpass the U.S. and western nations in one decade. Yang Jingsheng's account in the book 'Tombstone,' is a result of decades of research to find what happened during this period. He lost his own father to starvation during this period when all Chinese agriculture was forced into communes with communal living and communal kitchens. The result were disastrous as agricultural production suffered badly leading to famines and loss of an estimated 45 million lives. The policy was continued even as the result showed a looming disaster by 1959. It was only by 1962 that Mao was forced to accept the failure of the program. As an editor of Xinhua news agency, Jingsheng had access to accounts of waht happened in provincial documents and archives. The other book reviewed is 'The Great Famine' by Frank Dikotter which provides an illuminating account of what happened in these years. Dikotter says the final responsibility rested with Mao for calling for higher grain deliveries from the countryside at the height of the famine and for continuing the policy of force and coercion leading to starvation- he quotes Mao who said: "It is better to let half the people die so that the other half can eat their fill." The truth about this period was hidden by propaganda and the mistake accounts of westerners who visited China including Francois Mitterand till the 1990's. Jasper Becker, a former correspondent in China for the Guardian, gave one of the first accounts of what had happened in "Hungry Ghosts: China's Secret Famine" (1996). What shocked readers was the extent of the dead, the violence, and the fear of speaking out even after 30 years. The fear of speaking out is evidenced in the pen name Mo Yan of the Nobel prize winner in Literature for 2012 which means do not speak out in Chinese because his parents were from a more affluent farming family in the village. Mo Yan uses animal and fairy tale characters and Chinese history in his novels and stories including his effort to describe the behaviour of arrogant local officials. The chronology of this period also tells a story. China's Communists took control in 1949, the famine and violent repression to establish the commune system occured in 1958-1962 only 8 years later, and the Great Proleterian Cultural Revolution was launched by Mao in 1966 and was to last a decade till his death in 1979- a period which saw a new effort of upending of China's countryside to establish communism....