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EU leaders meeting in Brussels agreed on Dec. 12 for a single banking supervisor for large banks in the eurozone. The European Central Bank will act as the supervisor with powers to force banks to raise capital buffers and close banks it considers unsafe. The Federal Reserve, U.S.'s central bank, has similiar powers in the U.S. Germany's finance minister Schauble says the national parliaments would be able to ratify the new supervisor by Feb. 2013, and the new supervisor should be in place by March 2013. Differences between Germany and France on which banks should come under the supervision of the ECB were resolved by giving the ECB resposibility for banks that have over 30 billion euros in assets, are over 20% of a country's GDP, or operate in at least two countries. At least 3 banks in each country in the eurozone would come under ECB supervision. The remaining smaller banks would remain under national supervision as Germany had insisted earlier. The focus now is on coming up with a common resolution authority for winding down failing banks, a function performed by the FDIC in the U.S. These are two of the three major parts of the new European financial architecture to support the euro currency. The third is deposit insurance, which is provided by the FDIC in the U.S. system. It is a major step forward and clears the way for direct recapitalization of banks in Spain and Ireland, two countries affected by having to take on responsibility for failing banks. By breaking the link between sovereign debt and failing banks the new agreements makes it possible for these countries to return to economic growth....

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Economist's analysis of the American stock market as it stands in January 2007. World awash in liquidity. Could this change? Corporate profits at an high, could this change? What will the housing market weakness do in 2007 and 2008? Are there any complex financial instruments that might falter in 2007? Will risky assets always outperform and volatility remain low or will things change? Questions posed here. Note from 2007 November 27. The housing market took a downturn by mid year. The credit markets felt a severe jolt in the third quarter of 2007 and a credit crunch ensued. And the new financial instrument or delivery vehicle subprime mortgages packaged into securities and sold by premier institutions like Citigroup as AAA safe investments around the world, including it so happens to 3 Arctic towns in Norway by brokerage firm there. Using a network of financial affiliates to do this in a off balancesheet fashion, all blew up by November 2007. The adjustable rate mortgages were set to adjust by mid year 2008 and lead to an acceleration of foreclosures in 2008 which had already climbed up in 2007. Things can get sour quickly and financial markets felt this especially because no oone knew how much of these risky securities other parties in the markets were holding resulting in a general level of mistrust. Leading to a choking up of the financial institutions in USA and Europe and central bank intervention in both places, successful for the time being in stemming the problem. Another part of this crisis is the global effect of the subprime mortgage losses so that financial institutions around the world were affected. ...

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Paul Krugman describes the situation of slowing inflation in America and the prospects for president Biden in 2024. In just a few months since the midterms inflation is receding. Shoppers are showing resistance to price increases in retail stores. The Fed under Jay Powell has taken a resolute stand against inflation slowing inflation in house sales and rental, in automobile pricing and other sectors of the US economy. New investments under the climate change bill passed in Congress and the CHIPS and Science Act, Inflation Reduction Bill, mean more factory openings and jobs in America. A milder winter in Europe is helping it tackle an energy shortage and bringing oil prices under control.

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Ralf Rangnick is one of the most influential persons in German soccer, known to the public as "football professor." He coached Schalke and now takes up the job of coaching AC Milan.

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Public opinion in the district of Steve King, a Republican in the House of Representatives favoring defunding of Obamacare healthcare law.

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Anna Botin, new CEO of Banco Santander says she is acting on the three goals she set for the bank- to increase the number of independent directors on the board, bring in new management, and strengthen its capital cushion. Santander moved to increase its capital cushion to 10% under Basel III rules by selling 1.2 billion shares at 6.18 euros each to raise $8.8 billion in Jan. 2015.

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Senator Schumer calls it a "momentous 24 hours here in the US Congress, a legislative one two punch that you rarely see." Schumer negotiated a major climate change action bill for $369 billion in the Senate, that also covers tax changes to cover costs, and helps cut drug and health care expenses of Americans. The second quarter shows healthy job gains of average 375,000 a month and unemployment at 3.6%. The economy declined by 1.1% but much of this was from a slowdown in home and business construction sectors sensitive to higher interest rates and from higher inventory. Consumer spending increased by 1% during the quarter. The Fed's series of 0.75 percentage points interest rate increases had softened inflation expectations before they get entrenched in the economy. This makes it possible for Democrats to present a message to ordinary Americans that president Biden is getting things done with 2 legislative achievements. A $280 billion bill for investment in the semiconductor industry in the US. And a huge win on climate change with the $269 billion Schumer is negotiating in the US Congress. It is the opposite of what Republicans are saying is Biden's failure to tackle inflation. Appropriately Biden and Schumer are calling this the bill the Inflation Reduction Act of 2022. How did Schumer get this done? After the Ukraine war and EU decision to shut down Russian oil supplies, cut oil and gas use by 15%, and the climate change action inducing fires and floods, there is increasing awareness about climate change action as vital for our future all over the world. This gives more confidence to Democrats to negotiate a temporary continuation of oil and gas, with increased exports of US LNG to Europe. Senator Manchin from an energy producing state of West Virginia was brought over to Schumer's side with this idea. What Biden gets is a 40% reduction of US carbon emissions over 2005 levels, enough to get within reach of the 50% he promised at COP26 in Glasgow. It is a win-win for all sides and for the American people, and shows that patience and hard work, and persistence in the face of adversity can bring results. ...

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Chief Justice Roberts let the Obama healthcare law stand arguing that the individual mandate for everyone to carry health insurance acted as a tax, and was on these grounds constitutional. Justice Roberts found middle ground by first rejecting the Obama's administration's argument that asking every American to buy health insurance was legal under the commerce clause, and following this with the a non partisan approach that found the mandate legal under the tax clause. Roberts was guided by the writings of an eminent legal authority, Justice Oliver Wendell Holmes. Roberts referred to this in his opinion saying: "It is well established that if a statute has two possible meanings, one of which violates the constitution, courts should adopt the meaning that does not do so." Legal scholars speculate whether Roberts changed his vote later on or whether the Justice had used the questions in the hearings on the law to explore the idea that the law could be constitutional on different grounds. During the arguments in the hearings Roberts said: "The idea that the mandate is something separate from whether you want to call ita penalty or tax just doesn't seem to make much sense."...

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A failed policy of the Obama administration in Syria leads to a situation in which chemical weapons are used by the Assad government without a response from the U.S. or its allies in Europe.

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About 53% of the uninsured Americans disapprove of the Obama health care law, in comparison to 51% of the insured with health care coverage who disapprove of the new law. About 35% of the uninsured say they are likely to pay the penalty for not carrying insurance, and six of ten uninsured say it will make their health better. Overall the approval of the law is at 39% and disapproval at 50% in the Dec. 2013 poll. A striking part of the poll result is that 57% of the uninsured say it will increase their health care costs, compared to 52% of the insured. Only 20% say it will decrease their health care costs. This reflects the lack of serious controls on the surge in healthcare spending in the law. A separate research shows that more of the costs are passed on to users who will pay higher out-of-pocket costs after the law.

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The distrust in negotiations between Republicans Boehner, Ryan, Cantor and Democrats Reid, Obama, and Pelosi, during the weeks in October 2013 preceding the reopening of U.S. government after the shutdown. Republicans call attention to the rising deficit from $4.9 trillion in 1993 compared to $16.7 trillion in 2013, triple the increase in the deficit in just one decade compared to the five decades prior to this period. Democrats say sharp spending cuts would hurt economic growth and the unemployed.

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Brooks says moderation will prevail in the Senate and the House if the Republicans win in the midterm elections of 2010, as there is considerable legislative experience in the Republican leadership ranks. Boehner, Jon Kyl, Lamar Alexander, Eric Cantor and others, he says will act as forces of moderation, as future wins will depend on the record they build in the next two years. There is a sense that majorities on either side of the political spectrum will be transitory, emphasizing the pressing need to build a good record.