Economy

(ABC) – Factory Orders Drop More Than Expected – Read More Here

(CNNMoney) – Job recovery hits a wall – Read More Here

(Independent) – Johann Hari: How Goldman gambled on starvation

Speculators set up a casino where the chips were the stomachs of millions. What does it say about our system that we can so casually inflict so much pain? Read More Here

(ATR) – Six Months to Go Until The Largest Tax Hikes in History

Personal income tax rates will rise. The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which two-thirds of small business profits are taxed). The lowest rate will rise from 10 to 15 percent. All the rates in between will also rise. Itemized deductions and personal exemptions will again phase out, which has the same mathematical effect as higher marginal tax rates. The full list of marginal rate hikes is below Read More Here

(ABCNews) – Walmart CEO Pay: More in an Hour Than Workers Get All Year? – Read More Here

(Telegraph) – Middle class families face a triple whammy

You don’t usually expect radical neo-Marxism from the International Monetary Fund – the last great bastion of capitalism, spreading the gospel about the free market to the furthest reaches of the world. And yet, hidden away in an obscure IMF report a few years back is a short sentence that explains precisely the problems that Britain, and the rest of the Western world, have been sleepwalking towards for years.

The claim made by the IMF’s Financial Stability Report in 2005, in a seemingly throwaway remark, was that households had become the financial system’s “shock absorber of last resort”. In other words, whereas in previous eras, much of the pain of recession and financial crisis was borne by businesses or governments, with families afforded some degree of protection by the pensions system or welfare state, it was now households who were far more likely to face the music. Read More Here

(HuffingtonPost) – Expired Unemployment Benefits Causing Panic, Desperation: ‘I’m Drowning Fast’

Debra Rousey of Gainesville, Georgia, says that she received an unemployment check of $194 last week, half the usual amount she receives, along with a letter announcing that this check would be her last. She is now in a complete panic over what to do next. Read More Here

(DailyCrux) – Doug Casey: Going to these colleges serves no useful purpose whatsoever

There is no point at all in going to a college today, unless you’re looking to learn a trade. Or, perhaps, because the people you meet in college might be of some future benefit to you. In other words, it’s pointless unless it’s Harvard, Princeton, Yale, or the like. Because of the classes? No. It’s because the kids that go to such schools are the most intelligent and ambitious “up and comers” – so the connections you make and the patina you get at these places can open a lot of doors. Read More Here

(FoxNews) – Pelosi: Unemployment Checks Fastest Way to Create Jobs“It creates jobs faster than almost any other initiative you can name.” Read More Here

(July 1) – Video: Alex Jones Tv – Dollar Plunges After UN Call To Ditch Greenback! – Video Link Here

(July 1) – Video: Ron Paul – 114 Flip Flop on Audit The Fed Causing Bill to Fail 229 – 198

(AFP) – US jobless claims surge more than expected – Read More Here

(Bloomberg) – Goldman Sachs Pressed By Born for Derivatives Data

Goldman Sachs Group Inc. refused a request from the Financial Crisis Inquiry Commission to reveal how much it makes trading derivatives, saying the bank doesn’t separate the figure from other businesses. Read More Here

(CNNMoney) – House passes unemployment benefits extension

After a failed attempt earlier this week, the House voted to extend the deadline to file for federal jobless benefits Thursday. But the bill will be stuck in limbo as Congress takes a weeklong summer break.

The bill would extend the deadline to file for extended unemployment benefits through November, and would retroactively pay out claims to those who saw their benefits expire in May. Read More Here

(LRCBlog) – Audit-the-Fed Goes Down, 229-198

This is no surprise. Neither party wants to audit the counterfeiting enterprise that is at the dark heart of the regime. Read More Here

(EconomicCollapseBlog) – Mortgage Horror Stories: The U.S. Housing Industry Will Never Recover If Qualified People Can’t Get A Home Loan – Read More Here

(IrishTimes) – One million protest against Italy’s austerity cuts

About 100,000 people, according to union estimates, demonstrated in the central city of Bologna, capital of a traditionally leftist area with a strong labour movement. Read More Here

(TheHill) – Top Republican: Raise Social Security’s retirement age to 70

Boehner, the top Republican lawmaker in the House, said raising the retirement age by five years, indexing benefits to the rate of inflation and means-testing benefits would make the massive entitlement program more solvent. Read More Here

(USAToday) – National debt soars to highest level since WWII

The federal debt will represent 62% of the nation’s economy by the end of this year, the highest percentage since just after World War II, according to a long-term budget outlook released today by the non-partisan Congressional Budget Office. Read More Here

Climategate

(WattsUpWithThat) – New Zealand’s Prime Minister: Climate Change bill a “load of rubbish” and “hoax”

Via Andrew Bolt in email, some surprising revelations about New Zealand’s Prime minister and his previous opinion of the ETS. It appears he has done a complete about face from his very strong opinions of 2005. Read More Here

(WattsUpWithThat) – Climate Craziness of the Week: The AGU peddles a mammoth climate change theory – Read More Here

Video

(RawStory) – Video: MSNBC’s Ratigan – Stock market an ‘obviously corrupt’ fraud

On his afternoon show Tuesday, MSNBC host Dylan Ratigan explained why he believes the usual explanations given in the media for why the stock market went up or down on a given day are nonsense.

“Seventy percent of the volume [of trades on the stock market] is computers that are run by the banks playing ping pong with stocks for 10 seconds at at time,” Ratigan said.

“The stock market at this point, which used to be a reflection of the future value of actual businesses in this country, has been turned by our government and our banks into little more than a paper shredding facility [about which] we can make up reasons why it goes up and down,” Ratigan said. “But when the computers … at the banks are controlling the action, most everything else is kind of silly.”

Ratigan concluded that it’s time to create an “alternative investment structure” that would allow people to invest their money without putting it “into the obviously corrupt stock market in this country.”

Ratigan was referring to the relatively new phenomenon known as high-frequency trading: High-speed computer programs that are able to “peek” at stock trades less than a second before the trades are made. If the computer sees that a trade about to be made will raise the price of a particular stock, it can purchase the stock in the split-second before that trade is made.

Many market observers say this “games” the entire stock market in favor of the large banks that practice high-frequency trading. Indeed, there is evidence that HFT has made the large investment banks much more profitable. As Ratigan mentioned, HFT is estimated to account for 70 percent of all the trading on the New York Stock Exchange.

Mike Konczal at the Atlantic offers an analogy for high-frequency trading:

Imagine if eBay had a rule where you could cancel your bid within 1 second. I put up some stuff on ebay, and you place a bid for it. Then I place a bid that is higher than the current bid to see if that becomes the new highest bid. If it is, I cancel it within milliseconds. Remember, I don’t want to buy the product — I just want to drive the price higher! This is similar to what critics of HFT think is going on; HFT is able to ping prices with bids that exist for only milliseconds to see how much other buyers are willing to pay to squeeze out the maximum profit.

On May 6, 2010, when the Dow Jones unexpectedly plunged nearly 1,000 points, some observers blamed the sudden collapse — which saw some companies’ shares plummet to nearly zero within seconds — on high-frequency trading. Among those advocating that theory was Larry Leibowitz, COO of NYSE Euronext. But some other observers argued that the HFT programs had nothing to do with it, because they were shut down when the market panic set in.

Among the leading voices opposing HFT is Sen. Chuck Schumer (D-NY), who last year called for restrictions on the practice.

“The hallmark of our markets are that they are open and above board and the little guy has as much of a chance as the big guy,” Schumer told the New York Times. “This takes a dagger to the heart of that concept.”

Earlier this month, the Commodity Futures Trading Commission announced that it’s looking into placing restrictions on high-frequency trading.

The following video was broadcast on MSNBC’s The Dylan Ratigan Show, June 29, 2010, and was uploaded to YouTube by MoxNews.

Source: Raw Story

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