Global bank tax urged by IMF
Countries should consider imposing a two-pronged tax on banks and other financial firms to pay for bailouts the next time markets tank, the world's financial body is proposing.In a report to the G20 countries(these are The Group of Twenty Finance Ministers and Central Bank Governors known as the G-20 and also the G20 or Group of Twenty) that was obtained by the BBC, the International Monetary Fund recommends a globally co-ordinated flat fee on every big bank, coupled with a tax on profits.The money would be managed by governments and used to pay for economic rescue measures if the world ever again faces the kind of financial crisis that devastated economies over the last year and a half.The G20 finance ministers will discuss in the meeeting scheduled on june at toronto.Various ideas have emerged for how to make financial firms pay their own way for being bailed out, including a fee on every exchange of currency, and a financial transactions tax on every purchase and sale of stocks, futures and options.Revenue from this tiny tax would come from one of the most profitable and undertaxed sectors of our economy: the banks and stockbrokers, who — let's be frank — can certainly afford it."We pay our taxes so all Canadians can have quality public services.This is just a new method of grabing money from the citizens who get an average pay.
Wednesday, April 21, 2010
THE U.S ECONOMY GDP INCREASE
S&P sees U.S.economic growth even as stimulus ease
april 21, 2010
SAN FRANCISCO (MarketWatch) -- Standard & Poor's Ratings Services expects the U.S. economy to continue growing as the government's stimulus package winds down, the u.s goverment will apply the fiscal policy(infrastructure spending) down the line which will increase the GDP explosively and a higher employment rate are expected to increase as a result but the economy recovery will still be slower as expected.
april 21, 2010
SAN FRANCISCO (MarketWatch) -- Standard & Poor's Ratings Services expects the U.S. economy to continue growing as the government's stimulus package winds down, the u.s goverment will apply the fiscal policy(infrastructure spending) down the line which will increase the GDP explosively and a higher employment rate are expected to increase as a result but the economy recovery will still be slower as expected.
Monday, April 19, 2010
Non-residents continue to buy up Canadian securities
Sunday, April 18, 2010
OTTAWA -- Foreign investors continued to buy up Canadian securities in February, although at a slower pace than the previous month, Statistics Canada said Monday. Non-residents purchased a net total of $6.72-billion during the month, with all of those investments going toward Canadian bonds. That's down from $11.84-billion in January and $11.14-billion in December. The overall effect on the stock markets are expected to increase with a time frame, this is mainly because of the low interest rates in the U.S thus, many investors are seemingly looking forward for high returns, and reducing the default risks investors tend to with draw their money from the U.S STOCK MARKETS. Economists had expected purchases of between $9-billion and $10-billion in February. Foreigners sold $855-million worth of Canadian money-market paper in February and divested $193-million in stocks.Meanwhile, Canadians bought $3.92-billion of foreign debt and equities in February, "the largest outflow since March 2009, following significant divestments in January," the agency said. Canadians purchased $1.81-billion in foreign bonds, mainly U.S. government issues, and $1.36-billion in equities and $749-million in money market instruments.Read more: http://www.financialpost.com/related/topics/story.html?id=2924285#ixzz0lYqp39EK
Sunday, April 18, 2010
OTTAWA -- Foreign investors continued to buy up Canadian securities in February, although at a slower pace than the previous month, Statistics Canada said Monday. Non-residents purchased a net total of $6.72-billion during the month, with all of those investments going toward Canadian bonds. That's down from $11.84-billion in January and $11.14-billion in December. The overall effect on the stock markets are expected to increase with a time frame, this is mainly because of the low interest rates in the U.S thus, many investors are seemingly looking forward for high returns, and reducing the default risks investors tend to with draw their money from the U.S STOCK MARKETS. Economists had expected purchases of between $9-billion and $10-billion in February. Foreigners sold $855-million worth of Canadian money-market paper in February and divested $193-million in stocks.Meanwhile, Canadians bought $3.92-billion of foreign debt and equities in February, "the largest outflow since March 2009, following significant divestments in January," the agency said. Canadians purchased $1.81-billion in foreign bonds, mainly U.S. government issues, and $1.36-billion in equities and $749-million in money market instruments.Read more: http://www.financialpost.com/related/topics/story.html?id=2924285#ixzz0lYqp39EK
BANK OF CANADA expected to clarity interest rate intentions
April 19, 2010
The Bank of Canada is not expected to raise interest rates at its scheduled announcement tomorrow, but it might provide clarity on its intentions on whether it will act earlier than previously planned. The central bank's overnight lending rate has been set at a record-low 0.25% since last April. THERE AFTER the numbers on GDP, employment and inflation are expected to increase. The next two chances to raise rates after tomorrow are June 1 and July 20. The consensus among economists is for annual inflation remaining at 1.6%, unchanged from February, and the core rate -- excluding volatile items like energy and certain foods --to ease to 1.9%from 2.1%.
Read more: http://www.financialpost.com/related/topics/story.html?id=2923522#ixzz0lYmkzr8B
April 19, 2010
The Bank of Canada is not expected to raise interest rates at its scheduled announcement tomorrow, but it might provide clarity on its intentions on whether it will act earlier than previously planned. The central bank's overnight lending rate has been set at a record-low 0.25% since last April. THERE AFTER the numbers on GDP, employment and inflation are expected to increase. The next two chances to raise rates after tomorrow are June 1 and July 20. The consensus among economists is for annual inflation remaining at 1.6%, unchanged from February, and the core rate -- excluding volatile items like energy and certain foods --to ease to 1.9%from 2.1%.
Read more: http://www.financialpost.com/related/topics/story.html?id=2923522#ixzz0lYmkzr8B
Markets fall on Goldman Sachs fraud charge
Friday, April 16, 2010
Financial markets sold off Friday after the U.S. Securities and Exchange Commission charged Wall Street giant Goldman Sachs & Co. with civil fraud. The Dow Jones Industrial Average closed down 126 points, or more than one per cent, at 11,019. In Toronto, the S&P/TSX composite index gave up 150 points, to close at 12,061. The U.S. government has accused the investment bank of defrauding investors in its disclosures about securities it sold tied to subprime mortgage securities (also called exotic loans or exotic mortgage) as the housing market was faltering. The bank issued loans to individuals who couldn’t pay back the loans or borrowers whose credit history is not sufficient or even has no credit history to pay off the principal. The subprime mortgages often offer interest only loans (the borrowers pays only the monthly fixed interest rates), that are easier to afford and pay off. Goldman Sachs shares finished lower by $23.57 US on the New York Stock Exchange, down 13 per cent at $160.70.
The SEC( Securities and Exchange Commission) said that the investment bank failed to disclose that one of its clients, the giant hedge fund Paulson & Co., helped Goldman Sachs create — and then bet against — subprime mortgage securities that Goldman sold to other investors. Two European banks that bought the mortgage securities lost nearly $1 billion, the SEC said.
Alleges Paulson paid Goldman $15M
The SEC charged that Paulson paid Goldman $15 million US in 2007 to create the portfolio that was tied to mortgage-related securities the hedge fund viewed as likely to decline in value. Separately, Paulson took out a form of insurance that allowed it to make a huge profit when those securities became nearly worthless. The SEC charged that Paulson paid Goldman $15 million US in 2007 to create the portfolio that was tied to mortgage-related securities the hedge fund viewed as likely to decline in value.
Read more: http://www.cbc.ca/money/story/2010/04/16/sec-charges-goldman.html#ixzz0lYh0Yyr7
Friday, April 16, 2010
Financial markets sold off Friday after the U.S. Securities and Exchange Commission charged Wall Street giant Goldman Sachs & Co. with civil fraud. The Dow Jones Industrial Average closed down 126 points, or more than one per cent, at 11,019. In Toronto, the S&P/TSX composite index gave up 150 points, to close at 12,061. The U.S. government has accused the investment bank of defrauding investors in its disclosures about securities it sold tied to subprime mortgage securities (also called exotic loans or exotic mortgage) as the housing market was faltering. The bank issued loans to individuals who couldn’t pay back the loans or borrowers whose credit history is not sufficient or even has no credit history to pay off the principal. The subprime mortgages often offer interest only loans (the borrowers pays only the monthly fixed interest rates), that are easier to afford and pay off. Goldman Sachs shares finished lower by $23.57 US on the New York Stock Exchange, down 13 per cent at $160.70.
The SEC( Securities and Exchange Commission) said that the investment bank failed to disclose that one of its clients, the giant hedge fund Paulson & Co., helped Goldman Sachs create — and then bet against — subprime mortgage securities that Goldman sold to other investors. Two European banks that bought the mortgage securities lost nearly $1 billion, the SEC said.
Alleges Paulson paid Goldman $15M
The SEC charged that Paulson paid Goldman $15 million US in 2007 to create the portfolio that was tied to mortgage-related securities the hedge fund viewed as likely to decline in value. Separately, Paulson took out a form of insurance that allowed it to make a huge profit when those securities became nearly worthless. The SEC charged that Paulson paid Goldman $15 million US in 2007 to create the portfolio that was tied to mortgage-related securities the hedge fund viewed as likely to decline in value.
Read more: http://www.cbc.ca/money/story/2010/04/16/sec-charges-goldman.html#ixzz0lYh0Yyr7
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