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NY 529 Savings Plan Cuts Fees

by on September 4, 2010

New Yorks 529 college savings direct plan will reduce its fees by almost 50

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NY 529 Savings Plan Cuts Fees

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Sept. 3 (Bloomberg) — Gary Townsend, president of Hill-Townsend Capital LLC, talks with Bloomberg’s Julie Hyman about Goldman Sachs Group’s principal-strategies business. Wall Street’s most profitable investment bank is shutting down its group that makes bets with the firm’s own capital to comply with new U.S. rules aimed at curbing risk, according to two people with knowledge of the decision. (This is an excerpt of the full interview. Source: Bloomberg)

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Video: Townsend Discusses Goldman Principal-Strategies Decision: Video

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Supertel Hospitality, Inc. Announces Appointment of New Board Member

September 3, 2010

NORFOLK, NE–(Marketwire – September 3, 2010) – Supertel Hospitality, Inc. ( NASDAQ : SPPR ) announced that Richard A. Frandeen has joined the Board of Directors. Richard Frandeen has over 40 years of banking and real estate experience. His experience includes financing a wide variety of commercial real estate including hotel, office, retail, multifamily, senior housing and industrial projects. He retired from the First National Bank of Omaha in December 2009 after 14 years as senior vice president in charge of the bank’s commercial real estate division. Mr. Frandeen is a graduate of Yale University. 

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Video: Lukovic Says Defense Spending Cuts Will Boost Innovation

September 3, 2010

Sept. 3 (Bloomberg) — Marko Lukovic, an aviation analyst at Frost & Sullivan, talks about the effect of defense spending cuts on the aerospace industry. He speaks with Linzie Janis on Bloomberg Television’s “Global Connection.”

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Video: Stone & McCarthy’s Stone Discusses U.S. Jobless Rate: Video

September 2, 2010

Sept. 2 (Bloomberg) — Raymond Stone, chief economist at Stone & McCarthy Research Associates, discusses the outlook for the U.S. labor market and jobless claims. (This is an excerpt of the full interview. Source: Bloomberg)

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Video: William Fleckenstein Discusses U.S. Stocks, Strategy: Video

September 2, 2010

Sept. 2 (Bloomberg) — William Fleckenstein, president of Fleckenstein Capital Inc., discusses equities and his investment strategy. Fleckenstein talks with Betty Liu and Jon Erlichman on Bloomberg Television’s “In the Loop.” (This is an excerpt of the full interview. Source: Bloomberg)

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Video: William Fleckenstein Discusses U.S. Stocks, Strategy: Video

September 2, 2010

Sept. 2 (Bloomberg) — William Fleckenstein, president of Fleckenstein Capital Inc., discusses equities and his investment strategy. Fleckenstein talks with Betty Liu and Jon Erlichman on Bloomberg Television’s “In the Loop.” (This is an excerpt of the full interview. Source: Bloomberg)

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Sweden raises key interest rate to 0.75%

September 2, 2010

Sweden raises key interest rate to 0.75%

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Video: Horrow on Roddick Losing Temper, Popularity of Tennis: Video

September 2, 2010

Sept. 2 (Bloomberg) — Rick Horrow, founder of Horrow Sports Ventures Inc. and a Bloomberg Television contributing editor, discusses Andy Roddick’s reaction after being called for a foot fault at last night’s second-round match at the U.S. Open at the National Tennis Center in New York. Horrow also discusses the popularity of tennis in the U.S. He talks with Deirdre Bolton on Bloomberg Television’s “Inside Track.” (Source: Bloomberg)

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Video: IMF’s Lall Says Korea Economy Recovering `Very Strongly’: Video

September 1, 2010

Sept. 2 (Bloomberg) — Subir Lall, mission chief to South Korea at the International Monetary Fund, talks about the outlook for the country’s economy. Lall also discusses the rise of the Korean won and its impact on the nation’s exports. Lall speaks with Rishaad Salamat on Bloomberg Television. (Source: Bloomberg)

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BP Advertising Budget TRIPLED During Spill, Neared $100 million

September 1, 2010

Late Monday, BP (BP) responded to a request from the Congressional Committee on Energy and Commerce that asked the company to report how much money it had shelled out on advertising after the oil spill in the Gulf of Mexico in April.

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KG Partners Adds Experienced National Talent in Strategic Role

September 1, 2010

Michael Graham Joins the Company as Director of Strategic Planning, Based in Ann Arbor, Mich.

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Video: Shaun Osborne Sees Risk of Yen Reaching 80 Per Dollar: Video

August 31, 2010

Aug. 31 (Bloomberg) — Shaun Osborne, chief currency strategist at TD Securities Inc., talks about the outlook for the dollar-yen exchange rate. Osborne speaks with Deirdre Bolton on Bloomberg Television’s “InsideTrack.” (Source: Bloomberg)

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Video: Hufbauer Expects U.S.-China `Trade Spat’ to Continue: Video

August 30, 2010

Aug. 31 (Bloomberg) — Gary Hufbauer, senior fellow at the Peterson Institute for International Economics in Washington, talks about the trade relations between the U.S. and China. The U.S. Commerce Department is likely to find that the Chinese government illegally subsidized aluminum imports worth $550 million, the Wall Street Journal reported, citing unnamed sources familiar with the situation. The decision could lead to higher import duties as early as next week, and could boost U.S. manufacturers’ costs, the newspaper said. Hufbauer talks with Susan Li on Bloomberg Television. (Source: Bloomberg)

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Video: Battipaglia Discusses Gold Versus Stocks Strategy: Video

August 30, 2010

Aug. 30 (Bloomberg) — Joseph Battipaglia, market strategist at Stifel Nicolaus & Co. Inc., talks about his investment strategy. He speaks with Carol Massar on Bloomberg Television’s “Street Smart.” (This report is a excerpt of the full interview. Source: Bloomberg)

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Bill Singer: Examining the Defense of Family Values and Unequal Pay for Women

August 30, 2010

In the 1950s when women were still second-rate members of the American workforce — when they were not earning equal pay for a day’s work and the opportunities for advancement were still limited, a popular explanation for tolerating such discrimination was that women belonged at home raising families, that men were the breadwinners and needed to be given preference in terms of pay and promotion. At the time, we all bought in to that. Of course, those times were before the Great Recession, when mom wasn’t working full-time to support a family while dad had been laid off by the auto industry or unable to find a job in construction. Ah, the good old days. Family Values But Not Family Sacrifices These days, the issue of equal pay for women is not simply limited to how much they are paid per hour or whether the door to the executive suite is still ajar for them. Today, there are more fundamental issues being raised. Among the more prominent is whether society should or can ask its female workforce to make economic sacrifices for giving birth and raising families. As the politically charged term “family values” gains prominence, raising families has blossomed into a moral dilemma for society. If we value the manner in which our familes are raised and financially supported, then is it fair to simply shift the economic burden onto the woman’s shoulders? In more plain terms, what are the “costs” that women pay in the workplace when they become pregnant, when they go on maternity leave, when they need to opt for a part-time or flex-time schedule in order to attend to their children’s needs? If the solution in generations past was to simply “adjust” the average woman’s compensation as a hedge against her likely absences, is that policy still morally defensible when we as a society are now emphasizing family values? Why are the financial sacrifices solely the mother’s or grandmother’s to bear? If we penalize women through lower pay, limited career paths, and barriers to promotion, then what rewards do we similarly offer them when they work two jobs, ruin their health, and deplete their savings for the sake of their families? A recent New York Times article discussing working women and pay disparity stated: [O]ver all, full-time female workers make a whopping 23 percent less on average than full-time male workers. What’s going on? Men and women are not identical, of course. Many more women take time off from work. Many more women work part time at some point in their careers. Many more women can’t get to work early or stay late. And our economy exacts a terribly steep price for any time away from work — in both pay and promotions. People often cannot just pick up where they have left off. Entire career paths are closed off. The hit to earnings is permanent. The fact that the job market has evolved in this way is no accident. It’s a result of policy choices. As Jane Waldfogel, a Columbia University professor who studies families and work, says, “American feminists made a conscious choice to emphasize equal rights and equal opportunities, but not to talk about policies that would address family responsibilities.” “Women do almost as well as men today,” Ms. Waldfogel said, “as long as they don’t have children.” . . . See, ” A Labor Market Punishing to Mothers ” by David Leonhardt ( New York Times , August 3, 2010) at here. The U.S. Chamber of Commerce — A Stroll Down Memory Lane Decades and generations ago, the debate was largely nonexistent. Women were — well — different. The fairer sex. We called upon them during times of war but then replaced them with the returning men. There was a woman’s role. There was a woman’s place. Of course, that role and place never did quite pay the same as the same role and place of a man but, like I said, those were the olden days. Lots of things have changed. Consider this quaint piece published decades ago by the U. S. Chamber of Commerce: Equality, Suffrage and a Fetish for Money by Brad Peck [M]ost of the current “pay gap” is the result of individual choice rather than discrimination; but I believe that the overall tone is one of those cultural changes we need to make — the idea that giving up “pay and promotions” is a “terribly steep price” to pay for time away from work. These are only two of the many things that people value and depending on the weight that you assign to each of your values giving up a little might gain you a lot. Equality is a matter of ensuring equal access to opportunity, not ensuring identical outcomes in some areas depending on which opportunities you choose to take. . . . It is true that culturally speaking women are more likely to have to make the tough choices about work-life balance. But as we all seek to fit our values into a dynamic 24/7 economy, let’s not overlook the obvious, immediate, power-of-the-individual solution: choosing the right place to work and choosing the right partner at home. Thankfully, times have changed since the Chamber of Commerce posted that quaint article. Over the decades, we have learned that unequal pay is rarely something any intelligent employee would opt for — I mean, come on, in this day and age who in their right mind would prefer that they be paid less than another equally qualified employee? In the case of women, the Chamber of Commerce writer suggested, lo those many decades ago when such positions were respected, that female workers should not necessarily expect equal pay if they were also going to take time off for such things as maternity leave. Of course, those were the days before “family values” was an issue, so you could sort of get away with suggesting that society and the business community did not have a shared interest in fostering healthy, stable families. You know, “families,” as in mom, dad, and children. As in consumers. As in back-to-school sales, family cars, family vacations. As in those consumers who drive our economy. I sort of smiled when I read the musty musings of the Chamber’s writer, who exalts the power of the individual to solve his or her own problems. Of course, individual solutions aren’t necessarily doing that well these days with the Great Recession and all, but, hey, you can’t blame some fuddy duddy from the ’50s for not getting all the fine points correct. (And before you all send me all those nastygrams, I was born in the early, very early, ’50s). Still, it’s hard not to smile, if not laugh, at the awkward suggestion all those years ago by the Chamber that the issue of equal pay is somehow related to “choosing the right place to work and choosing the right partner at home.” Ultimately, equal pay would seem to be a matter of fairplay, which I always thought was the bedrock of America’s capitalism. An honest day’s work for an honest day’s pay. What the Chamber of Commerce didn’t quite seem to understand is that sometimes the “choice” to work at home or work part-time or on a flex schedule is not a voluntary option but one that is forced upon women. If we value families, then why is the economic burden of raising them always pressed upon women at the cost of fair pay and career opportunities? Whatever happened to the concept of shared sacrifice? As to what the Chamber of Commerce’s writer meant about suggesting a trade off in pay because of the choice of the “right partner at home,” is something that I will defer to far better minds. Apparently, if I chose to marry someone other than my wonderful wife, I would be entitled to more or less income? Is that what the part of my marriage vows meant when it said “for richer or poorer”? Gee, I thought they were only talking about docking my wife’s pay. I didn’t actually think that there was a financial marriage penalty on men too. That’s not fair! I thank Bloomberg writer Susan Antilla for bringing this story to my attention. For an absolutely superb take on the Chamber of Commerce blog and the entire equal-pay issue, you must read ” Little Women at Home in U.S. Chamber Worldview ” by Susan Antilla (Bloomberg) here ONE LAST THING : I hope you enjoyed the stroll down memory lane with my references to the U.S. Chamber of Commerce’s article about equal pay. There’s only one problem. That U.S. Chamber of Commerce article was not written in the last century. It was posted on the Chamber’s website as a blog in August 2010. Think that I’m kidding? Well, read it here . And when you’re done, you should read this.

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Abdul Rauf: Radicalism a common threat to muslims and non-muslims

August 30, 2010

Abdul Rauf: Radicalism a common threat to muslims and non-muslims

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Chatham Names MultiClient Research Head

August 28, 2010

Chatham Partners has appointed Luis Fleites as vice president and director of multiclient research

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Chatham Names MultiClient Research Head

August 28, 2010

Chatham Partners has appointed Luis Fleites as vice president and director of multiclient research

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Illinois TRS May Sell 3B In Investments

August 28, 2010

Illinois Teachers Retirement System Springfield is planning to sell 3 billion in investments

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Video: Cowen’s O’Donoghue Says Fed Has `Enough Ammunition’: Video

August 27, 2010

Aug. 27 (Bloomberg) — John O’Donoghue, head of equities at Cowen & Co. LLC, talks about the outlook for Federal Reserve monetary policy. Cowen also discusses U.S. stocks, investor sentiment and his investment strategy. He talks with Matt Miller, Dominic Chu and Adam Johnson on Bloomberg Television’s “Street Smart.” Richard Regan of ProTradingCourse.com also speaks. (Source: Bloomberg)

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Video: Halpenny Sees `Deep Reluctance’ for Yen Intervention

August 27, 2010

Aug. 27 (Bloomberg) — Derek Halpenny, European head of foreign exchange at Bank of Tokyo-Mitsubishi UFJ, talks about Japanese Prime Minister Naoto Kan’s comments that he would be willing to take “bold” action on currencies. He speaks with Maryam Nemazee on Bloomberg Television’s “The Pulse.”

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Video: SG Hambros’s Popper Favors Bonds, `Cautious’ on Equities

August 27, 2010

Aug. 27 (Bloomberg) — Andrew Popper, chief investment officer at SG Hambros Bank Ltd., talks about the Federal Reserve’s annual symposium in Jackson Hole, Wyoming, and his investment strategy. He speaks on Bloomberg Television’s “Countdown” with Mark Barton.

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NY Teachers Seeks To Boost PE Team

August 27, 2010

New York State Teachers Retirement System is seeking to appoint an assistant manager of private equity

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Video: New Jersey’s Christie Favors Budget Cuts Over New Taxes: Video

August 26, 2010

Aug. 26 (Bloomberg) — New Jersey Governor Chris Christie talks with Bloomberg’s Dunstan McNichol, Peter Coy, William Glasgall and Daniel Hertzberg about the state’s budget, tax policy and challenges. (Excerpts. Source: Bloomberg)

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Video: New Jersey’s Christie Favors Budget Cuts Over New Taxes: Video

August 26, 2010

Aug. 26 (Bloomberg) — New Jersey Governor Chris Christie talks with Bloomberg’s Dunstan McNichol, Peter Coy, William Glasgall and Daniel Hertzberg about the state’s budget, tax policy and challenges. (Excerpts. Source: Bloomberg)

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Olivier Blanchard: A Problem Shared Is a Problem Halved: The G-20’s "Mutual Assessment Process"

August 26, 2010

The Group of Twenty industrialized and emerging market economies (G-20) has broken new ground over the past year or two. It has embraced the type of collaborative approach to policy design and review that is well suited to today’s interdependent world, where policies in one country can often have far-reaching effects on others. Collective action by the G-20 in response to the recent crisis was critical in avoiding a catastrophic financial meltdown and a potential second Great Depression. Exceptional policy responses around the globe–including macroeconomic stimulus and financial sector intervention–indeed helped avoid the worst. These actions were notable, both for their scale and force, but also for their consistency and coherence. Keen to build on this success, G-20 Leaders pledged at their 2009 Pittsburgh Summit to adopt policies that would ensure a lasting recovery and a brighter economic future. To meet this goal, they launched the “Framework for Strong, Sustainable, and Balanced Growth.” The backbone of this framework is a multilateral process, where G-20 countries together set out objectives and the policies needed to get there. And, most importantly, they undertake a “mutual assessment” of their progress toward meeting those shared objectives. With this, the G-20 Mutual Assessment Process or the “MAP” was born. But, what exactly will the G-20 Framework imply in terms of prospective actions? And what have we learned so far from the MAP? The MAP–led and owned by the G-20 The MAP is a new approach to policy collaboration, entirely conceived and owned by G-20 members. Leaders have set the tone and substance for the initiative. The aim is to ensure that the collective policy action will benefit all. Like any new initiative, the MAP will be fully fleshed out over time, in large part through learning by doing. In the meantime, however, all G-20 members have signaled their “buy-in” to the process through their full cooperation in providing the information required for the analysis and assessments. When the G-20 initiated the MAP, they asked the International Monetary Fund (IMF) to provide supporting technical analysis. In carrying out this task, the Fund was asked to seek help from other international institutions such as the World Bank, the OECD, the ILO and the WTO. Moreover, a G-20 Working Group (co-Chaired by Canada and India), which was established to substantively add value to each stage of the mutual assessment, has assisted the G-20 Deputies in providing guidance to the Fund and other organizations on the analysis. The initial assessment was based on three key steps. As a first step in this process, all G-20 countries supplied each other and Fund staff with information about their “policy and macroeconomic frameworks”–that is, their policy plans and the expected performance of their economies over the next 3-5 years. Fund staff aggregated the inputs to assess whether the policies were consistent on a “multilateral” basis. And also what they implied for growth, employment, poverty, and so on. This formed the basis for the G-20 “base case” scenario. In keeping with the G-20 ownership of the exercise, individual country policies were taken at face value and no judgments were made by IMF staff concerning their feasibility, timing, or effectiveness. Once the base case assessment was considered by the G-20, Fund staff liaised closely with the Working Group to analyze alternative policy scenarios . A key objective of this exercise was to show how the economic outcomes could be improved through collective action by G-20 members. Providing the foundation–the G-20 “base case” The G-20 base case collectively implied “strong” growth. This enabled a decline in unemployment, which would, nevertheless, still remain quite high for several years. Growth was projected to be “balanced”, since it was broad-based across the G-20 countries. Finally, growth was expected to be “sustainable,” since it was led by private demand. The analysis, however, pointed to some shortcomings and risks. Budget balances in the base case were projected to improve noticeably, helped by strong growth. But deficits and debt levels would still remain high in the large advanced economies. Moreover, there is a risk that if strong growth projected in the submissions by the large advanced economies did not materialize, fiscal positions in these economies could worsen significantly and even trigger another crisis. The forecasts were also associated with only a modest rebalancing of global demand. Countries with large current account deficits before the crisis did not expect a significant boost to growth from exports. And countries with large surpluses did not expect a significant boost from domestic demand. Alternative policy scenarios–benefits of collective action Based on the findings of the “base case” assessment, the G-20 asked IMF staff to explore two alternative policy scenarios . First, an “upside scenario” and associated policy requirements that would help improve the outlook. Second, a “downside scenario” aimed at assessing the implications of the risks identified in the base case, if they were to materialize. Prior to carrying out the scenario analysis, Fund staff made technical refinements to the G-20 base case. This was made for two reasons. First, to ensure greater multilateral consistency in assessing the impact of the crisis and the estimation of output gaps; and Second, to update the macroeconomic frameworks for economic and market developments since the submission of G-20 inputs. The “upside” scenario assessed–in a layered approach–the cumulative benefits of three sets of policy actions for groups of countries with similar circumstances. First, “growth-friendly” and credible fiscal consolidation in major advanced economies, beginning in 2011 and beyond countries’ existing medium-term plans. Fiscal consolidation plans were conceived to be strong, credible, and, to the extent possible, supportive of growth. Second, policies aimed at nurturing domestic demand in emerging economies with large external surpluses. These were aimed at offsetting the loss of demand as advanced economies further tightened their fiscal positions in coming years. Third, structural reform policies aimed at alleviating supply constraints and reducing high unemployment, particularly in advanced G-20 economies, along with measures to boost demand. The key takeaway from this exercise is that well-designed, collaborative policy actions by the G-20 economies can produce outcomes that will make everyone better off. For instance, considered in isolation, fiscal consolidation in advanced economies would dampen growth in the next year or two. And it would have a lasting adverse impact on partners in emerging Asia, given their high export dependence. But all G-20 countries stand to gain when fiscal consolidation in advanced economies is accompanied by key reforms in emerging economies. Benefits to all countries increase further when all three sets of policies noted above are undertaken together. Indeed, our simulations suggested that the payoff for collective policy action by G-20 countries could be high, raising global GDP by an estimated 2½ percent over the medium-term. This would also be good news for job creation and poverty reduction. The “downside” scenario assessed the implications of the risks identified in the G-20 base case. What if growth in major advanced economies was lower than projected or what if market concerns about fiscal sustainability led to a sharp increase in sovereign risk premia? Not surprisingly, the outcome could be quite scary. There would be significant output and employment losses, with a large number of people falling into poverty. At the same time, it is clear that the implementation of the policies needed to reach the upside scenario would likely reduce the probability of such a downside scenario occurring. So, where to next? Reflecting on this assessment, G-20 Leaders agreed at the Toronto Summit in June 2010 that they could do a better job of achieving the objective of strong, balanced and sustainable growth by working together and pursuing reforms along those lines. Leaders committed to taking stronger policy actions that would get the world economy closer to the “upside” scenario in the staff’s report. This set the stage for the second phase of the process, where the mutual assessment will be conducted at the country and regional level. During this phase, each G-20 member will identify policy actions that could help achieve an ambitious outcome of stronger growth than in the base case. These “country-level” policy plans will form the basis for a comprehensive plan that will be articulated by Leaders at the Seoul Summit this November. As the G-20 moves forward with this shared approach to tackling today’s policy challenges, they have a unique opportunity to deliver a better outcome for all. Cross-posted from imfDirect .

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Olivier Blanchard: A Problem Shared Is a Problem Halved: The G-20’s "Mutual Assessment Process"

August 26, 2010

The Group of Twenty industrialized and emerging market economies (G-20) has broken new ground over the past year or two. It has embraced the type of collaborative approach to policy design and review that is well suited to today’s interdependent world, where policies in one country can often have far-reaching effects on others. Collective action by the G-20 in response to the recent crisis was critical in avoiding a catastrophic financial meltdown and a potential second Great Depression. Exceptional policy responses around the globe–including macroeconomic stimulus and financial sector intervention–indeed helped avoid the worst. These actions were notable, both for their scale and force, but also for their consistency and coherence. Keen to build on this success, G-20 Leaders pledged at their 2009 Pittsburgh Summit to adopt policies that would ensure a lasting recovery and a brighter economic future. To meet this goal, they launched the “Framework for Strong, Sustainable, and Balanced Growth.” The backbone of this framework is a multilateral process, where G-20 countries together set out objectives and the policies needed to get there. And, most importantly, they undertake a “mutual assessment” of their progress toward meeting those shared objectives. With this, the G-20 Mutual Assessment Process or the “MAP” was born. But, what exactly will the G-20 Framework imply in terms of prospective actions? And what have we learned so far from the MAP? The MAP–led and owned by the G-20 The MAP is a new approach to policy collaboration, entirely conceived and owned by G-20 members. Leaders have set the tone and substance for the initiative. The aim is to ensure that the collective policy action will benefit all. Like any new initiative, the MAP will be fully fleshed out over time, in large part through learning by doing. In the meantime, however, all G-20 members have signaled their “buy-in” to the process through their full cooperation in providing the information required for the analysis and assessments. When the G-20 initiated the MAP, they asked the International Monetary Fund (IMF) to provide supporting technical analysis. In carrying out this task, the Fund was asked to seek help from other international institutions such as the World Bank, the OECD, the ILO and the WTO. Moreover, a G-20 Working Group (co-Chaired by Canada and India), which was established to substantively add value to each stage of the mutual assessment, has assisted the G-20 Deputies in providing guidance to the Fund and other organizations on the analysis. The initial assessment was based on three key steps. As a first step in this process, all G-20 countries supplied each other and Fund staff with information about their “policy and macroeconomic frameworks”–that is, their policy plans and the expected performance of their economies over the next 3-5 years. Fund staff aggregated the inputs to assess whether the policies were consistent on a “multilateral” basis. And also what they implied for growth, employment, poverty, and so on. This formed the basis for the G-20 “base case” scenario. In keeping with the G-20 ownership of the exercise, individual country policies were taken at face value and no judgments were made by IMF staff concerning their feasibility, timing, or effectiveness. Once the base case assessment was considered by the G-20, Fund staff liaised closely with the Working Group to analyze alternative policy scenarios . A key objective of this exercise was to show how the economic outcomes could be improved through collective action by G-20 members. Providing the foundation–the G-20 “base case” The G-20 base case collectively implied “strong” growth. This enabled a decline in unemployment, which would, nevertheless, still remain quite high for several years. Growth was projected to be “balanced”, since it was broad-based across the G-20 countries. Finally, growth was expected to be “sustainable,” since it was led by private demand. The analysis, however, pointed to some shortcomings and risks. Budget balances in the base case were projected to improve noticeably, helped by strong growth. But deficits and debt levels would still remain high in the large advanced economies. Moreover, there is a risk that if strong growth projected in the submissions by the large advanced economies did not materialize, fiscal positions in these economies could worsen significantly and even trigger another crisis. The forecasts were also associated with only a modest rebalancing of global demand. Countries with large current account deficits before the crisis did not expect a significant boost to growth from exports. And countries with large surpluses did not expect a significant boost from domestic demand. Alternative policy scenarios–benefits of collective action Based on the findings of the “base case” assessment, the G-20 asked IMF staff to explore two alternative policy scenarios . First, an “upside scenario” and associated policy requirements that would help improve the outlook. Second, a “downside scenario” aimed at assessing the implications of the risks identified in the base case, if they were to materialize. Prior to carrying out the scenario analysis, Fund staff made technical refinements to the G-20 base case. This was made for two reasons. First, to ensure greater multilateral consistency in assessing the impact of the crisis and the estimation of output gaps; and Second, to update the macroeconomic frameworks for economic and market developments since the submission of G-20 inputs. The “upside” scenario assessed–in a layered approach–the cumulative benefits of three sets of policy actions for groups of countries with similar circumstances. First, “growth-friendly” and credible fiscal consolidation in major advanced economies, beginning in 2011 and beyond countries’ existing medium-term plans. Fiscal consolidation plans were conceived to be strong, credible, and, to the extent possible, supportive of growth. Second, policies aimed at nurturing domestic demand in emerging economies with large external surpluses. These were aimed at offsetting the loss of demand as advanced economies further tightened their fiscal positions in coming years. Third, structural reform policies aimed at alleviating supply constraints and reducing high unemployment, particularly in advanced G-20 economies, along with measures to boost demand. The key takeaway from this exercise is that well-designed, collaborative policy actions by the G-20 economies can produce outcomes that will make everyone better off. For instance, considered in isolation, fiscal consolidation in advanced economies would dampen growth in the next year or two. And it would have a lasting adverse impact on partners in emerging Asia, given their high export dependence. But all G-20 countries stand to gain when fiscal consolidation in advanced economies is accompanied by key reforms in emerging economies. Benefits to all countries increase further when all three sets of policies noted above are undertaken together. Indeed, our simulations suggested that the payoff for collective policy action by G-20 countries could be high, raising global GDP by an estimated 2½ percent over the medium-term. This would also be good news for job creation and poverty reduction. The “downside” scenario assessed the implications of the risks identified in the G-20 base case. What if growth in major advanced economies was lower than projected or what if market concerns about fiscal sustainability led to a sharp increase in sovereign risk premia? Not surprisingly, the outcome could be quite scary. There would be significant output and employment losses, with a large number of people falling into poverty. At the same time, it is clear that the implementation of the policies needed to reach the upside scenario would likely reduce the probability of such a downside scenario occurring. So, where to next? Reflecting on this assessment, G-20 Leaders agreed at the Toronto Summit in June 2010 that they could do a better job of achieving the objective of strong, balanced and sustainable growth by working together and pursuing reforms along those lines. Leaders committed to taking stronger policy actions that would get the world economy closer to the “upside” scenario in the staff’s report. This set the stage for the second phase of the process, where the mutual assessment will be conducted at the country and regional level. During this phase, each G-20 member will identify policy actions that could help achieve an ambitious outcome of stronger growth than in the base case. These “country-level” policy plans will form the basis for a comprehensive plan that will be articulated by Leaders at the Seoul Summit this November. As the G-20 moves forward with this shared approach to tackling today’s policy challenges, they have a unique opportunity to deliver a better outcome for all. Cross-posted from imfDirect .

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Spanish economy shrinks 0.1% in Q2

August 26, 2010

Spanish economy shrinks 0.1% in Q2

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Spanish economy shrinks 0.1% in Q2

August 26, 2010

Spanish economy shrinks 0.1% in Q2

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Novartis completes purchase of Alcon stake

August 26, 2010

Novartis completes purchase of Alcon stake

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Novartis completes purchase of Alcon stake

August 26, 2010

Novartis completes purchase of Alcon stake

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Glovista Hires BofA Wealth Advisor

August 26, 2010

Glovista Investments has appointed Enrique Figueroa as a managing director of wealth management

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Video: Grinnan Sees `Nice Upside’ for China Telecom Stocks: Video

August 25, 2010

Aug. 26 (Bloomberg) — Tucker Grinnan, head of Asian telecommunications research for HSBC Securities Asia Ltd., talks about China Telecom Corp.’s financial results and the outlook for China’s telecommunications industry. The country’s biggest fixed-line carrier posted second-quarter profit that beat analyst estimates after the company almost doubled the number of users at its mobile-phone unit. Grinnan talks with Susan Li on Bloomberg Television. (Source: Bloomberg)

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Video: Kennedy Says Drilling Moratorium Costing Louisiana Jobs

August 25, 2010

Aug. 25 (Bloomberg) — Louisiana State Treasurer John Kennedy talks about the impact of the deep-water oil drilling moratorium on his state’s labor market.

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Video: Louisiana’s Kennedy Discusses Oil Drilling Moratorium: Video

August 25, 2010

Aug. 25 (Bloomberg) — Louisiana State Treasurer John Kennedy talks about the deep-water oil drilling moratorium. President Barack Obama’s administration halted drilling in waters deeper than 500 feet after BP Plc’s Macondo well in the Gulf of Mexico blew out April 20. Kennedy speaks with Margaret Brennan on Bloomberg Television’s “InBusiness.” (This report is an excerpt of the full interview. Source: Bloomberg)

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Coupa Software Appoints Steven Sovik Vice President of Sales and Tony Dawson Vice President of Alliances

August 25, 2010

Software-as-a-Service Veterans Join to Further Accelerate Business Growth and Strategic Partnerships

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Credit Card Debt Drops To Lowest Level In 8 Years

August 25, 2010

NEW YORK — The amount consumers owed on their credit cards in this year’s second quarter dropped to the lowest level in more than eight years as cardholders continued to pay off balances in the uncertain economy. The average combined debt for bank-issued credit cards – like those with a MasterCard or Visa logo – fell to $4,951 in the three months ended June 30, down more than 13 percent from $5,719 in the same period a year ago, according to TransUnion. The credit reporting agency said it was the first three-month period during which card debt fell below $5,000 since the first quarter of 2002. Credit card debt remained the highest in Alaska, but slid 7 percent there to $7,148. A total of 22 states recorded debt higher than the national average. Residents of Alabama paid off the most debt, dropping their average balance by 27 percent to $4,753. More borrowers also made payments on time. The rate of cardholders past due by 90 days or more fell to 0.92 percent in the second quarter, from 1.17 percent last year. That’s the first time the delinquency rate has been below 1 percent since the second quarter of 2007, before the recession, said Ezra Becker, director of consulting and strategy in TransUnion’s financial services unit. The rate fluctuates during the year, he said, but the improvement is more evidence that consumers are working to make sure their credit cards remain in good standing. That concern reflects several economic factors, from the fear of unemployment to the fact that the collapsed housing market means it’s harder to cash in on home equity when money gets tight. “You can’t buy groceries with your house anymore,” Becker said. Reflecting the weak economies in the states hardest hit by the housing crisis, the delinquency rate was highest in Nevada, at 1.5 percent of cardholders, followed by Florida, 1.24 percent, Arizona, 1.11 percent and California, 1.08 percent. In all, 16 states fared worse than the national average for delinquencies. The lowest delinquency rates remained in North Dakota, at 0.54 percent, and South Dakota, at 0.55 percent. In a twist, Becker said the foreclosure crisis could be helping to improve the timeliness of credit card payments and lower balances. When people don’t make mortgage payments, he suggested, they have a short-term cash boost. “That can provide extra money to pay down credit cards,” he said. Besides paying down debt, consumers are getting fewer new cards. Nationwide, the number of new accounts opened dropped almost 6.5 percent from last year. TransUnion predicts that the national delinquency rate will remain below 1 percent for the rest of the year. However, on the high end, the Nevada rate is forecast to edge up to 1.6 percent.

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Video: PNC’s Dye Says U.S. Home Prices May Fall Another 5%-10%: Video

August 24, 2010

Aug. 24 (Bloomberg) — Robert Dye, senior economist at PNC Financial Services Group Inc., talks with Bloomberg’s Mark Crumpton about July U.S. existing home sales and the outlook for the housing market. Sales of previously owned homes plunged 27 percent in last month, twice as much as forecast, to a 3.83 million annual pace, figures from the National Association of Realtors showed today. (Source: Bloomberg)

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Guitar Center, Inc. Announces Executive Succession Plan

August 24, 2010

WESTLAKE VILLAGE, CA–(Marketwire – August 24, 2010) –   Guitar Center, Inc. today announced a management succession plan to be implemented during the fourth quarter of 2010. Under this plan, Greg Trojan, presently President and Chief Operating Officer, will assume the position of Chief Executive Officer. Mr. Trojan will also remain a member of Guitar Center’s Board of Directors. Marty Albertson, presently Chairman of the Board and Chief Executive Officer, will step down as Chief Executive Officer but will remain as non-executive Chairman of the Board.

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Video: Brusuelas Says Unemployment Rate Hurting Home Prices: Video

August 24, 2010

Aug. 24 (Bloomberg) — Bloomberg economist Joseph Brusuelas discusses today’s release of July existing home sales figures, which plunged 27.2 percent to a 3.83 million annual rate. Brusuelas speaks with Margaret Brennan and Michael Mckee on Bloomberg Television’s “InBusiness.” (Joseph Brusuelas is a Bloomberg economist. The opinions expressed are his own. Source: Bloomberg)

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Channel Chief Justin Crotty Joins NetEnrich Executive Team

August 24, 2010

Innovative Services Company Aimed at Growing Managed Services and Providing “Cloud” Enablement to IT Channel Partners

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Channel Chief Justin Crotty Joins NetEnrich Executive Team

August 24, 2010

Innovative Services Company Aimed at Growing Managed Services and Providing “Cloud” Enablement to IT Channel Partners

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Video: Sanchez Says Oil Spill, Foreclosures Hurt Florida Banks: Video

August 24, 2010

Aug. 24 (Bloomberg) — Alex Sanchez, chief executive officer of the Florida Bankers Association, discusses the impact of home foreclosures and BP Plc’s Gulf of Mexico oil spill on banks in the state. Sanchez talks with Betty Liu on Bloomberg Television’s “In the Loop.” (Source: Bloomberg)

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Video: Rehn Says European Banks May Face More Stress Tests: Video

August 24, 2010

Aug. 24 (Bloomberg) — Olli Rehn, the European Union commissioner for economic and monetary affairs, says lenders in Europe may face more frequent stress tests to bolster confidence in the region’s banking industry. Bloomberg’s Sara Eisen reports. (Source: Bloomberg)

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Video: Dorfman Recommends American Capital, ViroPharma, NYSE: Video

August 23, 2010

Aug. 23 (Bloomberg) — John Dorfman, chairman of Thunderstorm Capital and a columnist for Bloomberg News, talks with Julie Hyman and Mark Crumpton about his investment strategy for U.S. stocks. Dorfman also discusses the outlook for bond and equity markets. (Source: Bloomberg)

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Video: Wells Fargo’s Wren Likes Industrials, Materials Stocks: Video

August 23, 2010

Aug. 23 (Bloomberg) — Scott Wren, senior equity strategist at Wells Fargo Advisors, discusses his investment strategy and outlook for the U.S. equity market. Wren talks with Margaret Brennan on Bloomberg Television’s “InBusiness.” (Source: Bloomberg)

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Video: Wells Fargo’s Wren Likes Industrials, Materials Stocks: Video

August 23, 2010

Aug. 23 (Bloomberg) — Scott Wren, senior equity strategist at Wells Fargo Advisors, discusses his investment strategy and outlook for the U.S. equity market. Wren talks with Margaret Brennan on Bloomberg Television’s “InBusiness.” (Source: Bloomberg)

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Video: Chandan Sees More Bank Failures on Commercial Loans: Video

August 23, 2010

Aug. 23 (Bloomberg) — Sam Chandan, global chief economist at Real Capital Analytics, talks about the state of the commercial real estate market and the impact on banks. Chandan speaks with Betty Liu on Bloomberg Television’s “In the Loop.” (Source: Bloomberg)

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