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It is not clear whether Citigroup is off the problem list of banks, banks which rate a 4 or a 5 on the scale of 1 to 5. This could change even now after the stress tests. Here's why. Since late 2007, Citigroup has more than $50 billion in write-downs and loan defaults. The recent stress test of the 19 largest banks produced results that showed additional large losses looming over Citigroup, and questions are raised how Citigroup passed. The test found that estimated losses could reach $104.7 billion in loan losses through 2010 under the government's worst case scenario, and face nearly $20 billion in losses on its credit card portfolio. Yet the Fed's conclusion that Citigroup needed to bolster its capital by only $5.5 billion to withstand another economic shock did not reflect these facts. Investors and analysts also saw Citigroup as being in much worse shape than the other banks. THe FDIC did not agree with the Fed's conclusion. Only the Comptroller of the Currency agrees with Citigroup CEO Pandit, that the Citi model is not broken and just needs more time. THe FDIC wanted the rating lowered for the Citibank unit, and sparred with the Comptroller of the Currency over this. The FDIC has 305 banks on the "problem" list, and would like to add Citigroup to this list, so that it could keep a tighter review of what is going on at Citigroup. FDIC is helping finance a $300 billion loss sharing agreement with Citigroup, and has large exposure to Citigroup. FDIC's Bair thinks Citigroup has not moved fast enough to get rid of unwanted assets which might cause problems if the economy deteriorates, and would like to see a change in management. FDIC officials have approached former US Bancorp CEO, Mr Grundhofer, who is highly regarded in the industry, as a possible replacement. One reason being that while most of the problems of Citi stem from consumer loans, Pandit's experience is in investment banking, and he has not moved fast enough to get rid of risky and unwanted assets. He has failed to bring in managers with experience in handling the kinds of problems Citigroup faces in this crisis. With the FDIC's Bair having anticipated the crisis earlier than other regulators, the FDIC is expected to get additional powers in the new regulatory structure. This may result in tighter supervision of Citigroup. It also shows gaps and flaws in the stress tests that let some banks off too lightly, and make them vulnerable to the next episode in this crisis. ...

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Antonis Samaras, leader of Greece's New Democracy Party, opposes the tax increases mandated by the E.U.'s June 2011 program for Greece. He supports the spending cuts. The shrinking economy with no hope for recovery under the current plan will only worsen the situation. The Greek economy declined by 4.5% in 2010 and will decline 3% to 4% in 2011, and unemployment is already at 16%, with much higher unemployment among young people. Many experts, and editorials in the Wall Street Journal and the Economist, share this opinion. With the austerity program's cuts and tax increases deeply unpopular among ordinary Greeks Samaras's party is moving ahead of Prime Minister Papandreou's socialist party in public opinion polls. Papandreou is not expectd to complete his term of office which ends in 2013, and a change of government may come by the end of 2011. At that point the E.U. leaders will have to negotiate with Samaras. Samaras says he told German chancellor Merkel- if your plan works I will say I was wrong, but if it doesn't you will need a new plan....

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The credibility of the US at stake in its ambivalent responses to the protests in Egypt against thirty years of one-party rule under Mubarak. Opposition leader and Nobel laureate El-Baradei leads demonstrators after prayers at a mosque in Cairo and is met by waves of police shooting tear gas. After returning to the mosque El-Baradei tells reporters that Mubarak's regime has closed the door to a peaceful transition with its use of the police in large numbers to stop the demonstrators. He said if the international community is not speaking now when would it speak up. He called the Mubarak regime barbaric in its treatment of the Egyptian people on the streets of Cairo and other cities. He held the US responsible for its wavering and hesitant approach to the popular revolt demanding democracy, human rights and the rule of law. By supporting the barbaric regime the international community should not be surprised if it loses all credibility in Egypt and the rest of the world, said El-Baradei. ...

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One of the big changes is to give responsibility to younger managers. Chairman Whitacre's marching orders are to cut executive ranks and gve responsibility to a whole new group of younger managers. Performance reviews and goal setting is short-one page. The organizational chart for vehicle reviews that required 70 or so executives to pass on it is gone. Product decisions are made at weekly meetings with the President present. And people are not supposed to fear speaking up if a change is needed to what they are doing for a product. Debate is in and seniority is not supposed to be the factor it once was. 50 page presentations are out. Reuss, who heads global engineering, describes his start in 1983 as a student intern, and the lack of debate that made it impossible for him to say anything about the failed Aztek van, that his bosses might not like to hear.Its as if these types of product decisions were somehow the work of higherups with managers not having an equal or more important say....

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For decades the auto companies lobbied vigorously against stricter fuel efficiency standards. NYT editorial points to this failure in policy of the Detroit automakers, and the failure of Congress to do more for fuel efficiency standards with lobbying from automakers even in the recently passed legislation. That target of 35mpg fleetwide for 2020, a low target with no stretch or imagination built into it should be revised and a higher target set. If the companies build smaller cars like Europe does they could reach a target of 50mmpg fleetwide by 2020. That would be a serious target with stretch built into it. Tough conditions have to be atttached to any rescue money. This includes firing top management, no payment of dividends, limits on executive pay, tougher fuel efficiency target, reopening labor agreements on pay and benefits to reflect the new realities. If taxpayers are going to take the risks Congress must insist on these changes or the money will be wasted says the NYT editorial. Some of these steps would be painful for workers but they are necessary....

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The Italian comedy movie "Quo Vado," became a hit in Italy in 2016, premiering on Jan. 1. It tells the story of a government clerk played by Checco Zalone, whose only aspiration in life is a 9 to 5 government job for life. It lets Italians laugh at the past in a Italy that is changing. Today, the Turin newspaper La Stampa points out from its survey, two of three Italians would take some risk if it means career advancement. Yet public sector job protections remain firmly in place even as the private sector is changing rapidly not just in Italy but in Spain and other parts of the European Union.

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Starmer could not get a DJT commitment to US supporting with its forces and air support a 30,000 European peacekeeping forces. DJT saying  lets get the peace agreement first. 

“I have confidence, if we make a deal, it’s going to hold, the approach will be trust and verify.”

“Peacekeeping is very easy. It’s making the deal that’s very tough,” DJT said.  His idea was get the first step first and peacekeeping could be done after that “Let me make peace first.”

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Economists are the cause of the problem with text book theories that have no connection with realities on the ground, misleading th American people about what is good for them. Today's realities are multifaceted with many dimensions, economists knowledge is so specialized and only a small part of this reality changing on the ground and changing rapidly. Simply stated the US could be displaced as world power, if it does not act. The loss of its middle class is only the beginning, things could end up badly listening to economists and their textbook theories.

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Chinese leaders including Xi Jinping have frowned on the accumulation of wealth and the IPO pay day, says this report in the WSJ. The largely unregulated company Alibaba in its role as a financial business, its complex ownership structure, and practices, have met with skepticism from China's financial regulators. They see the financial operations of Alibaba and its businesses as operating with little financial oversight and the state having to assume risks if something failed. The company's business model of payments app Alipay, mutual fund, voluminous data collection, operations as small loan provider to half a billion people, are seen by Chinese leaders and president Xi as posing unknown and unclear risks when not properly regulated. Commercial banks are subject to  tough regulations and capital requirements that Alibaba has avoided. State owned banks supply Alibaba with majority of the funding and take on most of the risk even though Alibaba makes profit from the transactions, is the perception of regulators. China's export model and manufacturing have enable it to create the banking capital on which such internet business models have thrived. In a world where supply chains are being redone, and following the pandemic, there are questions about how businesses that were created in the period before the pandemic should operate in a different environment. ...

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When it comes to essential policy Republicans and Democrats in the US Congress can and will work together. A roughly $1 trillion infrastructure bill passed in the US Senate. Kentucky Republican Mitch McConnell says there are issues that are popular with both Democrats and Republicans.  He said in an interview with the WSJ - "The American people, divided, sent us a 50-50 Senate, and a narrowly divided House. I don't think the message of that was, 'Do absolutely nothing.' And if you are going to find an area of potential agreement, I can't think of a better one than infrastructure, which is desperately needed." The infrastructure bill passed this week 69-30 in the US Senate. McConnell thanked president Biden for getting the Democrats ready to compromise to pass the bill. Biden's long experience in the US Congress compares with another US president, when getting Congressional action from both parties was needed. Lyndon Johnson had this type of long experience in the US Congress which enabled him to reach compromise with Republicans to achieve goals in civil rights legislation and in passage of Social Security during the 1960's. In this sense Biden is right for the 2020's when national rebuilding is the task before America. ...

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Total sales of Truth Social are $5 million over 3 years, it cost $40 million raised through convertible notes to finance losses, says this WSJ report. By using financial dealmaking methods this could create $300 million for Truth Social and $6 billion for Trump Media, says WSJ in the report. DWAC shares were set at $10 and are now at $144 with its connections to Trump Media & Technology Group, going up 150% in the last year. Digital World Acquisition is a SPAC meaning that it is a shell company- or special purpose acquisition company in financial jargon- that lists shares on an exchange with the sole purpose of buying a private company and taking it public. Investors buy and shell shares on the expectation of which company it buys and how that company will perform. Trump Media and Technology Group, the parent of Mr. Trump's Truth Social social media company will merge with Digital World Acquisition SPAC and the new company will replace the old with the sticker changing DWAC to DJT. This could happen next week if the majority of DWAC shareholders approve it. This could get Truth Social $300 million says WSJ and Trump Media main shareholder with 60% holding about $3.5 billion in this deal making, says WSJ. ...

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Just days after the collapse of Francis Scott Key Bridge on the outer harbor of Baltimore, a key part of Maryland's infrastructure and its industrial and shipping jobs, this report in the WSJ shows candidates will not be discussing how they will fix the many problems from infrastructure, to rebuilding manufacturing, and investing in education, healthcare. On the same day March 30, 2024 the WSJ headline was that many other large bridges of this size all over America could collapse including Chesapeake Bay, Verrazano Narrows and George Washington in NY-NJ, and Golden Gate, San Francisco-Oakland in California. On the same day an interview with Morris Chang of Taiwan Semiconductor showed 92% of advanced semiconductor manufacturing was controlled  by TSMC with much of it located in Taiwan and China, under a business model that means advanced technology manufacturing in the US that would take the place of the lower tech textile and other mills sent to China, would also be shipped out. Manufacturers in the US including Apple HP and others agreed, leaving American workers in the lurch, hitting communities all across America without manufacturing jobs and without hope. That model has been around since the 1990's. It is as if the American people, workers and families in the US were never consulted. That story is told alongside this article in Lyrarc.com ...

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See these pictures of the Yangtze River and the Poyang Lake in BBC to understand how the decades of hyper growth in China with use of coal and fossil fuels unprecedented in history were not good for China and the world. The Yangtze river has never recorded less rainfall than this year since records began in 1961. That hyper growth is being followed by slight or flat growth both situations China and the world could have avoided if a steady growth pattern was put in its place. Common sense and wisdom would have done better than economists and business  in the US and local governments in China that dictated a self-interested pattern of hyper growth that led to ravaging communities in the US and the EU by shipping all manufacturing to China, then starting to reverse this process as the same ravaged communities in the US and EU responded in elections in the US and EU. None of the participants in this now take responsibility for their role in the changing climate and natural disasters one sees in 2022. China now faces the task of rebuilding its entire fossil fuel driven industry along renewable energy lines, when it is at the end of a property driven, land sale driven boom, with local governments finances precarious.   ...

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This Editorial Board article of the WSJ says the EU's embargo on Russian oil raise the cost for Putin's invasion of Ukraine and demonstrate Europe's resolve. The new round of sanctions by EU will ban the imports of Russian oil by sea as well as insurance for shipping companies that transport it globally. About two thirds of Russian oil comes by tanker. Germany and Poland will also stop pipeline oil imports from Russia, only Hungary, Czech Republic and Slovakia will continue with Russian pipeline oil. The result- an effective embargo on 90% of Russian oil imports by the end of 2022. How effective is this if Russian oil is rerouted through other countries to reach China, Western Europe and the US? The WSJ says don't underestimate the impact especially when it is combined with the ban on insuring ships that carry Russian oil. The higher insurance rates and costs of shipping will limit Russian oil exports. Europe makes up half of Russian oil exports and WSJ says the rest of the world can't use up all that oil. Russia exported $180 billion of oil in 2021, a large amount of this will no longer be available to Russia to finance the war. ...

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Julian Payne shares with us a day in the life of Prince Charles, now Charles III, in The Times. Charles is shown to be a person of boundless energy, who is keen to help on many efforts to improve life on the planet. He gets involved in the detail of conversations which run longer than usual. He is careful not waste resources and his shoes go through remending. He starts the day with a breakfast of seasonal fruit salad and tea, skips lunch and takes tea with fruit cake at 5 pm. The fruit cake is kept for use the next day and the next, so that nothing is wasted, such is his passion for no waste and using all resources carefully. Payne says he has a hatred for waste and gives much though to efficient use of resources. Dinner is at 8.30 pm and he works right into the midnight hour. His work day is relentless. And he loves the outdoors, his windows remain open. If you found yourself outdoors with the prince in winter, you may not be able to keep up says Payne.  Many say he has been highly underestimated. And his habits and his ways, his hard work, dedication, sincerity, and his sense of purpose may still surprise his country. ...

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Zoom calls in the wee hours of the morning or night, and emails at all hours, the scrambling that happened during 2020 and 2021 during work needs some structuring and laying down of boundaries. The work day got kind of crazy. Here Rachel Feintzberg offers tips on getting back to a healthier and more productive worklife by setting clear work boundaries and hours. The key experts say is to be respectful but resolute. Some tips are to follow boundaries such as a 6.00 pm for last calls you take- to do this 80% of the time and compromise on remainder. If pandemic habits are hard to break try innovative ways, like getting out on sports, cycling or gym routines at 6.00 pm. Its alway good to remember and articulate to peers and bosses that you will be most productive and producing higher quality work when you have time for taking care of your health and healthy living. Its hard depending on the boss but over 6 months it gets you to a better place. German practice of Feierabend actually refers to when you stop working for the rest of the day and is done in Germany. It sets a clear demarcation or boundary between work and leisure hours needed for healthy living. ...

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The former president having 81% of the vote for non college educated in the primaries and  small percentage of votes among college educated means that if elected it would be that a whole population of college educated people are being effectively disenfranchised in choosing the government. It means that democracy that took over 200 years to include people with less education and income in selecting a government has moved in 2024 to doing the opposite excluding the educated with all its implications for good government of such a lopsided state of affairs. A recent poll shows 81% of Haley's 250,000 votes in the Republican primary would not vote for the former president. Haley won moderates by 61% to 31%. Trump won those without a college degree by 82% to 13% for Haley. Trump support huge in rural areas, Haley's in the suburbs.This shows how different this Republican party is from that even as recent as 2015. In fact Gallup has found that in 1999 the Democratic party was a plus 14 percentage points for non college educated and in 2024 the Republican party is a plus 14 percentage points for non college educated. Among postgraduate educated the gap was 8 percentage points in 1999 and now has widened to where Democrats have 60% to Republicans 21%. ...

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WSJ Editorial talks about so called "spending blowouts" of the Democrats in 2024. Are Republicans saying let the roads, bridges, airports, built in the 1940-1960's heyday of American industrialization as China and India's is now, let them crumble? What do the educated minds of the WSJ Board say about coal in China and India and their effects on their massive use multiple times that of US and EU in history, is it not damaging to the environment? And why the Chinese realized the health in North China with coal winter use was worse than in South China cut their coal use. Are they saying lets burn fossil fuels and ignore, and if investment has to be made in solar who is going to do it? Is it OK for Republicans that we just import from China all our solar panels indefinitely into the future? "Green New Deal" is just a perjorative term, policy has to be made thoughtfully and without prejudice or bias of any sort for the best that we can do for the American people, ignoring so called "right" or "left." Doing what is right, what makes sense, is a lot harder.   ...