myongrxkspangle-blog

[myongrxkspangle-blog]

Fed’s 2013 low-rates window no cause for alarm: paper

When the Federal Reserve announced back in August that it expected to keep interest rates at very low levels until at least mid-2013, three top policymakers voted against the decision —  and a number of non-voting officials grumbled as well. St. Louis Fed President James Bullard is one prominent critic of the policy, arguing in a speech last month it ties the central bank down unnecessarily and potentially threatens its credibility if conditions require a course correction: It is time for the Committee to discard one-time policy changes with fixed end dates. The Committee in the past never contemplated announcing several hundred basis point moves to be completed at a date certain. Yet that is how the Committee behaves today. Research indicates quite clearly that optimal monetary policy should continuously respond to ever-changing economic conditions. Not to worry, argue two young economists in a paper on VoxEU. Olivier Coibion at William and Mary and Yuriy Gorodnichenko of Berkeley say the move toward using specific time horizons for the purpose of policy guidance is a perfectly consistent next step in the Fed’s gradual push toward greater transparency. They conclude opponents of the policy are misinterpreting its intention: Given current economic forecasts for 2012-2013, the Fed’s indication that policy rates are likely to remain around zero until at least mid-2013 appears consistent with the historical behaviour of the Federal Reserve. The announced path of policy rates is remarkably close to the projected path (subject to the zero constraint), where the projection is based on what the Fed did in the past, so little evidence exists that the new language should be interpreted as a direct change in policy (beyond possible movement toward increased transparency) or that the Fed has altered the relative weight assigned to inflation and output stabilisation in its objective function.  Instead, our results suggest that, contrary to those who condemn the Federal Reserve for becoming increasingly “dovish”, the FOMC’s projected policy path is well aligned with its historical behaviour and current projections of future macroeconomic activity.

[myongrxkspangle-blog]

Vehicle-to-grid: Genius or waste of energy?

  A professor at the University of Delaware has patented a vehicle-to-grid (V2G) technology for parked electric vehicles to return power to the grid and teamed up with NRG Energy to commercialize it. Professor Willett Kempton, who has been testing V2G technology that lessens the load on natural gas plants, told the New York Times utilities would not be interested in buying electricity from individual cars but from groups of perhaps 100 vehicles. The idea is not without its critics. “The only way this will take off is for users to have a financial incentive to allow the power company to do this, i.e. the power price during peak demand must be so high that it’s cheaper to deplete your EV battery rather than draw from the grid,” writes hackertourist on listserv slashdot. Ancillary services could fetch $3,000 a year for EV owners, CNET Green Tech reported the Federal Energy Regulatory Commission chairman saying last year. Others are concerned with vehicular range. “What happens when you want to drive the car and the battery isn’t charged because the power has been returned to the grid?” writes mcavic on slashdot. Meanwhile, V2G appears to be heading for a big push in the Japanese market, reports Jim Motavalli in the New York Times, possibly due to its potential during blackouts. Nissan, Mitsubishi and Toyota are all developing V2G systems expected to reach customers by the end of 2012. Is America ready to embrace V2G? Nope, it will never fly It has potential so let's wait and see I think it's brilliant - sign me (and my EV) up! View Results

[myongrxkspangle-blog]

Pennsylvania Senate approves takeover of Harrisburg

The plan was already approved by the state's lower house and is expected to be signed into law by Governor Tom Corbett.Corbett has said the city would have been better off if it agreed to a rescue plan under the state's Act 47 program for distressed cities -- which has seen Philadelphia and other cities through crises. His office stressed its opposition to the bankruptcy."This ongoing, reckless behavior has become a national embarrassment not only for this city but for our entire Commonwealth, as Harrisburg is the only municipality in state history to reject an Act 47 recovery plan," said State Senator Jeff Piccola, who helped write the bill."The bankruptcy filing recently approved by city council is illegal and demonstrates the majority's inability and absolute flagrant disregard in governing the city in a responsible manner," said Piccola. "Their behavior has brought us to this point which is unfortunate but necessary."The bill empowers Corbett to declare a state of fiscal emergency in Harrisburg and petition for the appointment of a receiver. The receiver would be charged with drafting and implementing a long-term recovery plan.On Monday, a U.S. bankruptcy judge declined to rule immediately on the legality of Harrisburg's Chapter 9 municipal bankruptcy filing and set a hearing date for November 23.The city of 50,000 is struggling with debt approaching $400 million, including about $300 million incurred from an expensive revamp of its incinerator. The incinerator is owned by the Harrisburg Authority, a separate municipal entity, but the city and Dauphin County guarantee much of that debt.In a bid to resolve the crisis, the Harrisburg City Council last week voted 4-3 to file for bankruptcy.Harrisburg Mayor Linda Thompson, who opposed the move, filed a petition to have the filing dismissed, claiming it was illegal because the City Council did not follow proper procedure. The state joined Thompson, the county and bondholders in opposing the filing.In July, the City Council rejected a state-approved rescue plan, which called on Harrisburg to renegotiate labor deals, cut jobs, and sell or lease the city's major assets -- its parking garages and the incinerator. In August, the council rejected a similar plan put forward by the mayor.

[myongrxkspangle-blog]

Defendants in Alaska corruption case to plead guilty

Former state Representative Vic Kohring filed notice on Monday in U.S. District Court that he will plead guilty to a single count of conspiracy to commit extortion.Last week, former Alaskan House Speaker Pete Kott filed a similar notice of his intent to plead guilty to a single bribery count.The change-of-plea filings appear to close a five-year-old federal probe that targeted VECO Corp., then Alaska's largest oil-services company, the late U.S. Senator Ted Stevens and several other Alaska politicians and prominent businessmen.Stevens, the Senate's longest-serving Republican, was convicted in 2008 of concealing some $250,000 worth of gifts from VECO and lost the seat he held for 40 years.VECO, for years one of Alaska's most powerful and politically connected corporations, disappeared as a separate entity, its assets purchased by a rival company.And former Wasilla Mayor Sarah Palin used the scandal to wage a successful 2006 gubernatorial campaign as an anti-corruption outsider.The scandal broke in 2006, when federal agents raided several state lawmakers' offices. In all, 12 people were charged, and eight wound up in prison.While Stevens was the best-known target, Kott and Kohring played some of the most memorable roles.Each was convicted of three felony corruption counts in separate 2007 trials. Much of the evidence came from videotapes made secretly by federal agents of meetings in 2006 between the lawmakers and VECO officials in a Juneau hotel suite.In one now-notorious tape, Kohring, a Republican from Wasilla, clasped a wad of cash handed to him by Bill Allen, then VECO's chief executive, and asked him: "What can I do for you?"In another tape Kott detailed his efforts to manipulate the oil-tax bill."I sold my soul to the devil," Kott, a Republican from the Anchorage suburb of Eagle River, said in that conversation. To that, Allen replied: "Now I own your ass."Kott was sentenced to six years in prison and Kohring to 3 and 1/2 years, but both were released early in 2009 on appeal.They each won new trials after an appeals court found prosecutors had withheld potentially exculpatory evidence.Stevens' conviction was overturned in April of 2009, and the indictment against him dismissed based on what a federal judge ruled egregious prosecutorial misconduct.He died in a plane crash in August of 2010.Allen and former VECO Vice President Rick Smith served prison time after pleading guilty to corruption charges.They confessed to bribing Kott, Kohring and several other Alaska politicians, including former state Senate President Ben Stevens, Ted Stevens' son, who was paid about $242,000 in what the VECO officials said were phony consulting fees.Ben Stevens was never charged in the case.

[myongrxkspangle-blog]

Republicans ask deficit panel to rethink Dodd-Frank

* Also seeks changes to public housing, mortgage modsWASHINGTON, Oct 14 (Reuters) - Republicans on the House Financial Services Committee are calling on the deficit reduction panel to consider curbs to the Dodd-Frank financial overhaul in a bid to boost the sputtering economy.In a letter addressed to the congressional "super committee", 20 Republicans joined Chairman Spencer Bachus in urging consideration of a raft of Republican legislation to repeal or limit last year's Dodd-Frank oversight law."Congressional proponents of (Dodd-Frank) promised that it would 'increase investment and entrepreneurship, foster competitiveness, confidence in our financial sector, and robust growth in our economy,'" Bachus wrote in a letter on Friday."Yet some 15 months after Dodd-Frank was enacted, many small businesses are starved for customers and credit; unemployment has soared to more than 9 percent; and for far too many American families, economic security seems further away than ever."The Dodd-Frank financial oversight law was passed to limit the type of excessive Wall Street risk taking that many blame for the financial crisis of 2007-2009.It subjects big financial firms to stricter oversight, tries to bring transparency to the roughly $600 trillion global derivatives market, and puts restrictions on Wall Street pay, among other reforms.Republicans have blasted Dodd-Frank as a regulatory overreach that has hindered the U.S. economic recovery.The letter also recommends that the super committee -- headed by Republican Congressman Jeb Hensarling and Democratic Senator Patty Murray -- cut or rein in spending on a number of federal programs, from public housing to mortgage modification programs.It also advocates easing restrictions on capital raising by small businesses.Bachus is particularly tough on Dodd-Frank derivatives regulations, which he says will put U.S. markets at a competitive disadvantage and could impose trillions of dollars in compliance costs.He also slammed the billions of dollars of fees that he says will be imposed on the private sector as part of Dodd-Frank."This is a dead weight loss to the economy," Bachus writes. "None of these funds will be used to create jobs."The letter attached 24 bills with a range of changes to Dodd-Frank and other laws, including exemptions for corporations that use derivatives, and a repeal of the entire Dodd-Frank act.The 12-member super committee is facing a deadline of Nov. 23 to come up with at least $1.2 trillion in deficit reductions over the next decade.

[myongrxkspangle-blog]

Republicans ask deficit panel to rethink Dodd-Frank

* Also seeks changes to public housing, mortgage modsWASHINGTON, Oct 14 (Reuters) - Republicans on the House Financial Services Committee are calling on the deficit reduction panel to consider curbs to the Dodd-Frank financial overhaul in a bid to boost the sputtering economy.In a letter addressed to the congressional "super committee", 20 Republicans joined Chairman Spencer Bachus in urging consideration of a raft of Republican legislation to repeal or limit last year's Dodd-Frank oversight law."Congressional proponents of (Dodd-Frank) promised that it would 'increase investment and entrepreneurship, foster competitiveness, confidence in our financial sector, and robust growth in our economy,'" Bachus wrote in a letter on Friday."Yet some 15 months after Dodd-Frank was enacted, many small businesses are starved for customers and credit; unemployment has soared to more than 9 percent; and for far too many American families, economic security seems further away than ever."The Dodd-Frank financial oversight law was passed to limit the type of excessive Wall Street risk taking that many blame for the financial crisis of 2007-2009.It subjects big financial firms to stricter oversight, tries to bring transparency to the roughly $600 trillion global derivatives market, and puts restrictions on Wall Street pay, among other reforms.Republicans have blasted Dodd-Frank as a regulatory overreach that has hindered the U.S. economic recovery.The letter also recommends that the super committee -- headed by Republican Congressman Jeb Hensarling and Democratic Senator Patty Murray -- cut or rein in spending on a number of federal programs, from public housing to mortgage modification programs.It also advocates easing restrictions on capital raising by small businesses.Bachus is particularly tough on Dodd-Frank derivatives regulations, which he says will put U.S. markets at a competitive disadvantage and could impose trillions of dollars in compliance costs.He also slammed the billions of dollars of fees that he says will be imposed on the private sector as part of Dodd-Frank."This is a dead weight loss to the economy," Bachus writes. "None of these funds will be used to create jobs."The letter attached 24 bills with a range of changes to Dodd-Frank and other laws, including exemptions for corporations that use derivatives, and a repeal of the entire Dodd-Frank act.The 12-member super committee is facing a deadline of Nov. 23 to come up with at least $1.2 trillion in deficit reductions over the next decade.

[myongrxkspangle-blog]

UPDATE 1-Life Healthcare to buy $108 mln stake in India's MHC

JOHANNESBURG Oct 11 (Reuters) - South Africa's Life Healthcare said it would pay about $108 million for a quarter stake in Indian private hospital firm Max Healthcare, giving it a sizeable exposure to the fast-growing market.Life Healthcare, South Africa's second-largest private hospital group by market value, has said it wants to expand beyond its core market of South Africa, where it competes with rivals Medi Clinic and Netcare .The company said in a statement it plans to buy 26 percent of Max Healthcare, a unit of Indian conglomerate Max India , for about 850 million rand ($108 million) in cash.Max Healthcare is one India's largest private healthcare providers, Life Healthcare said.The deal will require exchange control approval from the South African Reserve Bank and may also require regulatory approval, the South African company said.Life Healthcare operates 56 hospitals and maintains more than 7,000 beds in South Africa.The company said it was being advised on the deal by Rand Merchant Bank, a unit of South Africa's FirstRandShares of Life Healthcare are up about a third so far this year, outperforming its two main rivals, and the broad All-Share index , which is down nearly 4 pct. ($1 = 7.906 South African Rand)