Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts

Sunday, October 6, 2013

Non functional Government


It is amazing to see how dysfunctional our government in DC has become. Seems that these morons only want to protect their seats and just their seats.. nothing more nothing less..

However, in doing so, they are literally making mockery of US as a whole. They need to understand why US is still super-power despite borrowing trillions of dollars from whole of the world.


  1. Need less to say, it is technological advantage.. that to in defense which makes them still most strong army of the world despite billions or trillions of dollars of cut in defense budget. 
  2.  After this, it is a simple world called "Trust".. This trust in USD which makes USD as world currency.. Which makes US treasury bond papers even better than gold.. and all the governments invests and keeps their forex reserves in these two things.. 
These morons need to understand that their monkey business is hurting image and in turn hurting this trust factor. Which is much more bigger damage to US and its entire population. These small small things about funding to social program is nothing to be worried about. One way or other, folks will be managed.. There might be some issues here and there.. but this is peanut..

Impact of loss of trust by world market will be much more devastating to US.. fortunately, all the other countries are in much more bad shape so we may be lucky that world may ignore this monkey business from these morons.. 

I simply don't understand their position.. 2012 elections were very clear verdict.. if US population didn't wanted Obama Care they would have got Romney into white house and also given republicans full control of Senate.. it was clear verdict that US population likes this concept of Obama care.. essentially, in my view something is better than nothing..This issue is over.. If they still want to fight about it.. they should do so in 2014/2016 elections and take full control of White house and Congress. There is no need to do this drama where they are going to loose any how and be registered in US history as Super Morons who tarnished US image in world market. STOP IT.. Get Over!!! What will you do with your seat/re-election if US itself will sink.. Come on wake up.. and think more than just your seat and re-election.. it is much more bigger than that.. 




DEADLOCK IN WASHINGTON

What if closure goes on longer?


Shutdown’s impact could widen, intensify for people needing help on food, housing, education, jobs


By Josh Richman and Steve Johnson


Staff writers


As the federal government shutdown creeps toward its first full week with no resolution in sight, experts say October could be a cold, dark month for many — but November could make that look like the good old days.

Millions of Americans are nervously watching their calendars, knowing that support for the basics of daily life — food, housing, education, jobs — have begun eroding and could vanish around the end of the month at the earliest, throwing lives into chaos and perhaps tripping up the nation’s fragile economic recovery.

“The longer this goes on, the greater uncertainty there will be for funding some of these programs,” said H.D. Palmer, deputy director of the California Department of Finance.

This not-so-rosy forecast assumes Congress will raise the nation’s debt ceiling by Oct. 17. If it does not, all federal borrowing stops and the
 government could halt billions of dollars in payouts to Social Security, Medicare, Medicaid, military pay, veterans benefits and other areas that had survived the shutdown. 

However, on Thursday House Speaker John Boehner reportedly told GOP colleagues he won’t let the nation default. 

But that doesn’t mean the shutdown won’t continue. If it does, Thanksgiving could find many Americans with little to be thankful for. 

The cascading consequences would confront Americans at every level: The poor and elderly would lose access to food and housing, and the better- off would lose government contracts and agency supports for investment in companies and jobs. 

California’s food stamp program supporting nutrition for 1.9 million poor residents would run out in November, as would school programs serving about 4.5 million meals a day mostly to low-income students. 

Cutting off food aid has costly consequences. For example, about 350 elderly people in Fremont, Newark and Union City get one free hot meal a day from a Meals on Wheels program, said LIFE ElderCare Executive Director Patricia Osage. The closed federal Administration on Aging reimbursed the $1,575 daily cost; Osage said she can cut back other services and tap reserves to keep delivering meals for “six or seven weeks.” 

After that, she said, “you would see within six months that skilled nursing facilities would be packed,” as lack of nutrition undercut seniors’ health. Skilled nursing costs about $1,500 a day per person, she said — nearly as much as feeding 350 people. 

Elsewhere, confusion reigns: Closed federal offices have no one to answer questions or resolve conflicts. 

The Department of Housing and Urban Development’s shutdown plan suggests the nation’s 3,300 housing authorities will see public housing subsidy vouchers and operating costs cut off in mid-December — or maybe after October, said Oakland Housing Authority Executive Director Eric Johnson. Such a cutoff could affect rent payments for tens of thousands of Bay Area households. 

Nothing is certain after Nov. 1, agreed Katherine Harasz, deputy executive director of Santa Clara County’s housing authority. The two program administrators would love to discuss this with HUD, but “there’s nobody to call” now, Johnson said. 

The shutdown could clip the Bay Area housing market’s recovery. Mortgage lenders can’t verify applicants’ Social Security numbers or Internal Revenue Service tax transcripts. The Federal Housing Administration has only a skeleton crew, so closing some FHA-insured loans — about 15 percent of the market — might be delayed. And the U.S. Department of Agriculture won’t close new loans for rural borrowers until the shutdown ends. 

The shutdown also threatens the struggling job market. Federal money and oversight support private sector hiring, but when the money spigot for contracts and facilities twists shut, the economic effects ripple widely in surrounding communities. Locking up Yosemite National Park and the NASA Ames lab in Mountain View, for instance, empties small-business cash registers for miles around. 

Federal money also primes the job pump with oversight and support for innovation: Shutting down the Food and Drug Administration’s processing of new drug applications for longer than a month “could be frightening,” said Travis Blaschek-Miller, spokesman at Bay-Bio, Northern California’s biotech and life-science industry group. 

San Francisco-based Symic Biomedical, which is studying treatments for osteoarthritis and cardiovascular ailments, last month won two federal research grants worth a total of $409,000. It was a godsend for the struggling company, said co-founder John Paderi, but now he can’t get the money. 

“If (the shutdown) carries on for a while, this could be a very big problem,” he said. A prolonged closure of the Securities and Exchange Commission could affect initial public offerings, said Jeffrey Vetter, a partner and securities lawyer at Fenwick & West. 

Twitter, for example, plans to raise up to $1 billion in its IPO, and The Wall Street Journal reported concern that a lengthy shutdown could interfere with its schedule. 

Even the mechanics of hiring are broken: The Department of Homeland Security closed its E-Verify program, which companies use to check the immigration status of job candidates. And we won’t know much about the job market because the Labor Department can’t issue reports. 

The U.S. Department of Education says a shutdown of more than one week “would severely curtail (its) cash flow to school districts, colleges and universities.” 

It is uncertain when that money will run out in California. However, “child care services for poor families and grants benefiting children of military families could be affected within days,” said state Education Department spokeswoman Tina Jung. Even the military isn’t immune, although active duty men and women are still being paid. Travis Air Force Base near Fairfield closed its commissary, library, education center and heritage center, and its medical center is curtailing elective surgeries after furloughing more than 700 civilian employees — almost half of those regularly on the base. The Department of Veterans Affairs’ website says VA claims for compensation, pensions, education and vocational rehabilitation “will be suspended when funds are exhausted.” The shutdown might add a month to the current 12- to 18-month backlog at the Oakland VA office, said Nathan Johnson, director of the Contra Costa County Veteran Service Office. “They’re used to waiting at this point,” he said.

Staff writer Dan Nakaso contributed to this report. Josh Richman covers politics. Contact him at 510-208-6428. Follow him at Twitter.com/josh_ richman. Read the Political Blotter at IBAbuzz. com/politics. 

Wednesday, April 17, 2013

RIP Margaret Thatcher

In my view, the best way to remember her is by this Wish:

"We desperately need you Mrs. Thatcher here in California!!" or rather.. someone like you.. Who can handle growing menace of all kinds of unions in California.. Be it Teachers Union..  or Police or Firemen or any damn union..

I wanted to write about Mrs. Thatcher for some time..  but was busy with other things.. well that is not excuse..  However, after reading this news on WSJ about her funeral service:

http://online.wsj.com/article/SB10001424127887324493704578427961176489542.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsForth

I simply couldn't stop writing on her.. It was shocking and really disturbing that there are still some people (or better.. morons) in Britain who are opposed to her policy.. In my view, I think what ever is left of Britain today is because of her.. If it were not her policies, Britain would have been third world country by now.. Nothing more can be said..


Thursday, January 3, 2013

Happy New 2013!!

Wish you all a very Happy New Year!!!

Hope this 2013 brings peace, joy and prosperity to everyone!!

Starting this year with great news clip from my beloved California..

http://www.mercurynews.com/science/ci_22300614/rains-promise-seen-deep-sierra-snow-pack

California was suffering from drought for last 3-4 years which was causing restricted water supply to farms and orchards. However, this year started with great bang and above average rainfall in all areas. More importantly, snow storms in Sierra caused super great snow level which are already enough to support up to 40% of California's water supply. This is just beginning of wet season. Hope that by the end of season we will have more than enough rain/snow to not only take care of this season, but also build some extra reserves for future seasons..

This should definitely help spur local economy come back to its feet even faster. We in tech world are doing best to grow California economy any how.. Little support from mother nature is always more than welcome!!!

Lastly, you should expect many more skiing pictures from us ;-)

Once again a very Happy New Year to everyone!!!



SNOW PILES UP

Winter’s wet start bodes well for season


By Lisa M. Krieger


 


December’s storms have boosted the spirits of California’s water watchers, with the season’s first Sierra Nevada water survey revealing a snowpack deeper and wetter than normal.

The ritual trek along Highway 50 near Lake Tahoe to survey the state’s water outlook revealed more than four feet of soggy snow, with moisture 34 percent above average.

That compares with last year’s depth of 0.14 inches — scarcely more than a few scattered patches.

“We are doing great — off to an excellent start,” said Ted Thomas of the state’s Department of Water Resources. Last year was dry, except for late spring showers.



RICH PEDRONCELLI/ASSOCIATED PRESS

Frank Gehrke, chief of snow surveys for the Department of Water Resources, gets up after tumbling in the snow Wednesday.



The crucial reading means the state will be able to deliver at least 40 percent of the supply requested by state water project members this year — and it expects to give more, as — and if — winter storms accrue. 

The measurements are particularly important because California is entering a fourth year of drought. 

The gusting Pacific storms nudged San Jose’s cumulative seasonal rainfall to 7.19 inches, a big splash beyond last year’s 1.55-inch total. So far, Concord has had 9.64 inches; Livermore, 8.29 inches, and Oakland, 10.63 inches. This time last year, none of those cities had more than two inches. 

The next week or two are expected to be dry, with temperatures ranging from the low 30s to low 60s, said Austin Cross of the National Weather Service in Monterey. He couldn’t predict whether dry skies will persist through January. 

That’s no cause for concern — it fits a pattern of a midwinter dry spells alternating with rains, Cross said. Fresno farmers rejoiced while keeping a close eye on thermometers. On Wednesday night, to prevent freezing delicate oranges, huge fans blew air through the orchards and warm groundwater poured through irrigation channels. 

“This is fantastic news,” said Fresno County Farm Bureau director Ryan Jacobsen, who views the snowy Sierra from his office. “The San Joaquin Valley is considered a desert. We would not be in existence if not for the snowpack above us.” 

Welcome signs of winter are everywhere in the Bay Area. White-blossomed milkmaids and manzanita shrubs are blooming along Mount Diablo’s Mitchell Canyon and Donner Canyon areas. And three beloved waterfalls are cascading down the flanks on the Clayton side of the mountain, visible to hikers on the Falls Trail, said naturalist Leslie Contreras. 

Wednesday’s clear winter skies gave Diablo’s visitors views all the way to Mount Shasta, Mount Lassen, the Sierra and the Farallon Islands. 

Fungus fans are thrilled by the appearance of mushrooms, delicious when they’re not killing you. Our coastal mountains are home to more than 1,000 species, which start bursting through the soil two to three weeks after the first rains. 

“Rains are heaven sent,” said mycologist Phil Carpenter, “prime minister” of the Fungus Federation of Santa Cruz, who is busy preparing for the annual Jan. 11-13 Fungus Fair. “This is our time to glory.” 

Other harbingers of the season, banana slugs, have emerged from their summer hiding spots — finally able to travel along moist routes. 

Chinook salmon are swimming up Mount Tamalpais’ Marsh Creek for the first time in 60 years, weary after spawning and a long journey from the ocean. 

“December was very kind and generous to California’s rivers and streams,” said Steve Rothert, California director American Rivers. 

Early rains are also important for steelhead trout, said environmentalist Matt Stoeker, who monitors the Peninsula’s San Francisquito Creek. “Having a heavy flow in December means fish are able to get out of the Bay and upstream to spawn.” 

Migratory birds are arriving in the Bay, a critical stop along the Pacific Flyway. 

Stunning white snow geese, visiting from the Arctic, were in a flock of Canada geese at the Sunnyvale Baylands Park. Other avian winter visitors include red-breasted nuthatch near Mount Madonna and pine siskins feeding on redwood cones atop tall trees along Highway 152. In the Central Valley, vast flocks of sandhill cranes and tundra swans have gathered. 

But water-lovers are trying to temper their enthusiasm in a still-young winter. 

“We still have a lot of season left to go,” said Jacobsen. “We’re really encouraged, but the rains have to continue for it to be a true success.” Contact Lisa M. Krieger at 650-492-4098. 



Saturday, November 3, 2012

Silver lining of tragedy..

It is sad fact but universally true.. Tragedies natural or man-made do happen.. However, after every tragedy we have something new or better which simply couldn't have happened without those tragedy happening.. This news clip reminded me of same.. I was in dilemma.. whether to express my thoughts on it or not.. mainly due to another natural tragedy in east coast by Sandy. Honestly.. I feel that this subject is so prickly.. by writing this, I don't want to look rude and materialistic.


Couple of things gave me courage to express my thoughts on this topic.. There was controversy around New York Marathon.. which was finally cancelled.. but arguments "for" and "against" this event were loud and clear messages.. I could also express my views openly..

In this article below.. it seems that there is big change in attitude of Japanese youth in particular.. I hope it results in some kind of revival in Japanese economy which is shrinking for last two decades. There are some really interesting and innovative ideas being executed by Japanese youth and hopefully something great will come out of it. Hopefully it will result in great entrepreneurship which hopefully will take out Japanese economy from the grip of large multi-nationals who are primarily engaged in production and exports..

More importantly, it should hopefully change culture of workaholism to enjoy family and spending money in and outside of Japan. Hopefully, Japanese youth will take it as a message and work harder on stopping 3-4 decade long population decline ;-) Hopefully Japan will work on better economic and political relationships with its neighbors and more importantly with China.

Now, adding Sandy into this mix.. Agreed, it has resulted in big financial loss.. and it will result in significantly higher insurance claim payouts.. However, all these tragedies are boon to these insurance companies, who get more new enrollments which essentially more than compensates these claims.

Only thing, which is absolute loss in these tragedies is life.. There is no replacement or compensation for the lives lost... We can't even think about human sufferings and pains due to lost lives.. I am not good in expressing myself in this area so I won't even go near to this area.

However, despite all the difficulties and loss and pain in east coast due to Sandy.. there is upbeat tone.. about economy.. everyone is expecting revival of local economy in next couple of years and hoping for even more stronger economy.. a real solid stimulus to that area which will definitely percolate to rest of the country and even to global economy..

New York Marathon became controversial not because of health or any other sentimental benefits.. or loss... at stake was simple 340 million dollars for local economy.. The number which was calculated by economists.. that New York City/State will benefit around 340 million dollars from the event.. Finally, human pain and suffering was weighed more than 340 million USD..

I was told by someone long time ago.. US has only (or let us say significantly) grown when either of these two things happen:


  1. There is stalemate in Washington DC.. i.e. Government is totally ineffective.. 
  2. During/After War or some other tragedy of National scale.. 
Off-course, it grows at fastest rate when both of the conditions are met together at same time..

There is gridlock in DC.. Which will hopefully continue as Obama is more or less sure to be back for second term. Sandy stamped his tenure extension.. I am sure Congress/Senate will still dominated by republicans. That should ensure this stalemate to continue. We are wrapping up war and hopefully finish it by 2013... at the same time Sandy is going to create mini stimulus to economy.. which all together should create perfect conditions for US economic revival.. That is the real silver lining which I am talking about!!!!  



AFTER THE 2011 EARTHQUAKE

Young entrepreneurs seize the day in Japan


Psychological aftershocks trigger new urgency among young professionals


By John Boudreau


 


TOKYO — Before last year’s devastating earthquake, college student Tatsunori Hirota envisioned a life as a “salaryman,” one of the nation’s countless tradition-bound corporate foot soldiers in white shirts and black slacks who fill the city’s subways every morning and night commuting to and from nondescript offices.

But the psychological aftershocks of the disaster have created a new sense of urgency among a small but growing number of young professionals and college students like Hirota. They are abandoning the path of the corporate salaryman to chart their own way by launching tech startups and connecting to Silicon Valley.

“We lost family,” said Hirota, a Tokyo University economics student who, after the magnitude 9.0 quake, began studying programming and cofounded an e-learning website, Mana.bo, that received positive feedback from Silicon Val­
ley venture capitalists after he visited the Bay Area over the summer. 



LIPO CHING/STAFF PHOTOS

HEALING:
 From left, Ken Iwasaki, Emi Tamaki and Masaaki Sugimoto of H2L created a device to deal with hand injuries.





HELPING:

Dan Nagayama, above left, and Sid Umeda founded Dennoo, a measurable advertising platform.





EDUCATING:

Tokyo economics student Tatsunori Hirota, left, co-founded the e-learning website Mana.bo.


“We felt death closer than before,” he said. “Now we don’t want to work for the big company. We want to work for ourselves. The biggest risk is that something could happen to you before you do something you really love. It could happen anytime, anywhere.” 

Seismic shift 

The shift in attitude comes as Japan’s technology sector, once a rival of Silicon Valley, struggles to remain relevant in a global economy that is leaving it behind. Observers say Japan’s inward-looking and risk-averse culture has for years dampened the nation’s entrepreneurial spirit. In its 2010 report, the Global Entrepreneurship Monitor ranked Japan lowest among advanced economies in terms of attitudes toward launching new businesses. It noted that Japanese were the least likely to consider becoming entrepreneurs. 

In the aftermath of the earthquake and tsunami, which cost some 16,000 lives and triggered widespread power outages and radioactive leaks from the Fukushima Daiichi nuclear power plant, there was a “shattering of trust in big institutions” across Japanese society, said Phil Libin, CEO of Mountain View-based Evernote, a provider of note-taking and archiving technology that has operations in Tokyo. 

That collapse of faith extended to large tech companies, many of which have broken with long-held promises of lifelong employment with mass layoffs. 

“The younger generation — their parents are getting fired from the big companies,” said Nobuyasu Kondo, an executive with Tokyo-based GNT, a Japanese mobile and gaming platform. “They realize if you work for the big company, you can still get fired. So why not take a risk and start your own company?” 

At the same time, Japanese realize their nation’s future prosperity and economy, surpassed recently by China as the world’s second-largest economy, is vulnerable in the global market, said Ted Yamamoto, a general partner at UTEC, a venture firm tied to Tokyo University whose mission is modeled after Stanford University, which long has fostered tech entrepreneurship among faculty and students. 

“It’s obvious the Japanese market is shrinking,” he said. “The population is shrinking. You bypass Japan to go to China and India.” 

Government officials, academics and industry leaders say that if the nation is to regain its technological mojo, it needs to jump-start an entrepreneurial culture, and that includes tapping into Silicon Valley. 

“To come to Silicon Valley, that is the dream of many startup companies and entrepreneurs in Japan,” said Yukiko Pollard, general manager of Tokyobased image processing software company Morpho, which opened a San Jose office this year. 

But young Japanese entrepreneurs face daunting obstacles. In Japan, there is nothing resembling the entrepreneurial ecosystem of Silicon Valley. And while companies like Mana. bo are able to tap into venture capital here for initial startup funding, there is a dearth of investors willing to spend the larger sums needed to fund deep research and development to prepare startups for the global market, experts say. 

“In Silicon Valley, you can get $20million (in startup funding) without owning a suit. In Japan, it’s much harder to raise money,” said Evernote’s Libin, a big fan of Japanese technological prowess looking to make investments in the country. 

Most Japanese entrepreneurs have no ties to Silicon Valley. Unlike Chinese and Indians, relatively few Japanese venture abroad for studies. Last fall, a mere 54 students from Japan were enrolled at Stanford, while 757 Chinese and 488 Indian students were on campus. So Japanese are far less likely to know people embedded in Silicon Valley’s startup culture. 

Beyond Japan 

But that’s changing as Japanese, from school students to young professionals, look beyond their borders for study and careers. And at home, there has been an upsurge in interest in learning English in a society that previously saw no need to speak languages other than Japanese, observers say. “Our embassy just put on a college expo and I can’t tell you the number of students who came up to me and said, ‘I would like to study at Stanford,’” said U.S. Ambassador to Japan John Roos, the former CEO of the powerhouse Palo Alto law firm Wilson, Sonsini, Goodrich & Rosati, which works with many Silicon Valley companies. “We are seeing more and more of that — Japanese having an interest in going to school in the United States, connecting with the Silicon Valley. Everywhere I go now, there is a lot of this type of discussion.” 

For sure, there is brainpower aplenty in Japan, whose engineering brilliance has never been in question. 

“The creativity of the Japanese people is as strong as it has ever been,” said Allen Miner, founder of SunBridge Partners, a Sunnyvale venture capital firm pursuing startups in Japan. “The Japanese are as ambitious as ever. Pretty much every Japanese startup founder is thinking about how to create a company that will thrive for 100 years.” 

A sense of rejuvenation was in the air recently at an informal networking cafe established by a Tokyo University student. The cafe, which includes a large blackboard for brainstorming, acts as an informal think tank for young people looking for change. 

Emi Tamaki, 28, said she dreams of participating in a new startup culture in Japan, an area with a high concentration of startups she calls “Silicon Reef.” 

“I want to make many companies,” said Tamaki, co-founder of H2L, a maker of a device that can be used to rehabilitate a hand injury through therapeutic movements controlled by a computer, or to teach someone to play a musical instrument by directing finger movements. 

Issei Takino, co-founder of Mujn, which makes software that aims to revolutionize assembly line robots, spoke with the brashness of a young Steve Jobs: “We can change the world.” 

Contact John Boudreau at 408-278-3496. 




LIPO CHING/STAFF H2L’s Ken Iwasaki demonstrates the principle behind the company's PossessedHand system. 

Friday, October 5, 2012

Mostly good news for Bay Area..

Seems that I need to be prepared to even worse traffic in coming days... You can very easily gauge local bay area economy by amount of time you spend on roads during peak commute hours.. We can already see growing delays due to increased cars on the road.. Cars on the road or commute time under normal circumstances is directly related to local economic conditions.. They have improved over last few years.. despite substantial investments in local freeways you can see that peak commute hours are getting worse..

If this news about Dell, Arista & Palo Alto Networks is true then we should be expecting even further delays.. Even though it gives some pain during office commute.. it is kind of enjoyable pain.. it gives you lot of comfort to see bay area coming back to its glory days (last time it was dot.com boom??)...

However.. Kahi dhoop.. Kahi chaya..  (best English translation I can think of is.. "Somewhere Sunny... Somewhere Shade".. I am sure there has to be better proverb in English.. In case you guys know.. let me know it's English equivalent..)..

Seems that our friends in Zynga are suffering a lot.. though they are still doing good for an average company.. but it seems that wall street is not happy with them.. so does.. many of the employees over there.. I could never understand their business model.. how can anybody be so dumb to procure virtual goodies with real money.. it is beyond my comprehension.. but then I am old school person.. Looks like many more folks are converting to old school like me!!!and that is causing grief to Zynga..

I think Zynga should do more of in game advertising or start some payer club who can pay some kind of monthly subscription and will be allowed to play their games not only free of advertisements but also will get some special latest and greatest games (aka beta testing).. Free gamers should be forced to view advertisements and limited sponsored merchandise while playing.. May be it is already in place.. I really can't think of any viable sane revenue model for Zynga..

Good news for employees is that SF is even more hot for job perspective as most of the newer start-ups are setting their shop in SF instead of suburbs of SF.

Overall.. I hope to see golden days back in bay area again very soon..

Cheers!!!




THOUSANDS OF JOBS POSSIBLE

Tech’s South Bay deals


Dell, Arista Networks, Palo Alto Networks could bring big payroll
 1st

By George Avalos


 


SANTA CLARA — Three high-profile tech companies — Dell, Arista Networks and Palo Alto Networks — have struck deals to expand their South Bay operations in agreements that could bring thousands of jobs to Santa Clara.

All together, the companies have agreed to lease 600,000 square feet in Santa Clara. Buildings with that much space typically can accommodate 2,400 or more employees.
Palo Alto Networks has rented 300,000 square feet on Great America Parkway near the amusement park. Just up the street, south of Highway 237, Dell is renting 150,000 square feet, while Arista is leasing 150,000 square feet at a site next door to Dell.

In the largest of the expansions, Palo Alto Networks is taking over spaces once occupied by struggling Internet titan Yahoo.

“We have experienced significant growth,” said Mike Haro, a spokesman for Santa Clarabased
 Palo Alto Networks. “We needed space to account for that moving forward. We want to accommodate customer demand. We are in a hiring mode.”

At present, Palo Alto Networks has roughly 300 employees in the South Bay, Haro estimated. The company went public in July, pricing its shares at $42 each and raising $260 million through the initial public offering. Since the IPO, its shares
 have soared 57 percent. 

A short distance away, Dell and Arista have leased two of three buildings that haven’t even been constructed yet by developer Irvine in a project known as Santa Clara Gateway. The buildings are due to be completed by mid-2013, and the deals were arranged through commercial realty firm CB Richard Ellis. Arista wouldn’t confirm its lease, but sources with direct knowledge of the transaction and Arista’s expansion plans confirmed the tech company has signed a lease for the building. The company, based in Santa Clara, has 500 employees worldwide, spokeswoman Amanda Jaramillo said. She wouldn’t disclose the company’s local employee count. 

Dell, which confirmed its latest lease, in February announced it would expand its Silicon Valley outpost and add offices to allow the company’s workforce to reach 850 jobs. Now, Dell’s Silicon Valley workforce is around 1,500, said spokeswoman Katelyn Davis. 

“We are very happy to be expanding our presence in Silicon Valley,” Davis said in comments emailed to this newspaper. For Dell, the Silicon Valley hub is a springboard for the company to evolve beyond its traditional roots as a computer manufacturer. It is eyeing a push into additional technologies such as storage, networking and cloud computing. “Silicon Valley is a center of technological innovation, and Dell continues to tap the great talent pool here,” Davis said. “We have added hundreds of new positions in engineering, sales and marketing and services.” 

A growing host of technology giants have gobbled up offices in the South Bay. The flurry of deals involve large blocks of space in Menlo Park, Palo Alto, Mountain View and Cupertino. Sunnyvale has sizzled with unprecedented expansions by Google, Apple and LinkedIn. 

“The path of expansion keeps heading south,” said Chad Leiker, a vice president with Kidder Mathews, a commercial realty firm. “Companies are taking large blocks of space in Santa Clara, and now they are looking to push into North San Jose.” 

That’s spurred a building boom in multiple markets in the South Bay. 

“There is new development coming out of the ground,” Leiker said. “And some developers plan to redevelop existing buildings or build on older parcels if they are in prime locations. Developers hope to ride the next wave of company expansions.” 

Contact George Avalos at 925-977-8477. 

==============================



Battered Zynga faces a third-quarter loss


Weak demand for some titles, charge linked to OMGPop acquisition will hit Q3 bottom line


NEW YORK (AP) — Zynga, the maker of “FarmVille” and other online games, expects a loss for the third quarter because of the weak demand for some of its titles. It’s also taking a charge related to its acquisition of OMG-Pop, a mobile game maker, which
 it bought for $183 million in March.

The San Francisco-based game company said Thursday that it sees a net loss of 12 to 14 cents a share for the three months that ended Sept. 30. Excluding one-time items the company expects
 to break even or post a loss of 1 cent per share.

Zynga also forecast revenue of $300 million to $305 million.

Analysts, on average, expect break-even earnings on revenue of $286.7 million, according to FactSet.

Zynga said it will take a charge of $85 million to $95 million on its acquisition of OMGPop, the company
 behind “Draw Something.” The charge — which amounts to roughly half of what Zynga paid for the company, represents its diminishing value. While user numbers soared earlier this year, “Draw Something” quickly lost footing in the months after the acquisition. 

Zynga also cut its guidance for the full year. It expects bookings of nearly $1.09 billion to $1.1 billion, down from earlier expectations of $1.15 billion to $1.23 billion. Bookings reflect in-game purchases of virtual goods in the quarter they occur. 

“The third quarter of 2012 continued to be challenging and, while many of our games performed to plan, as a whole we did not execute to our satisfaction,” CEO Mark Pincus said in a statement. 

He added that the company remains “optimistic about the opportunity for social gaming and the power of our player network of 311 million monthly active users. When we offer our players highly engaging content, they respond.” 

Investors were not as optimistic. Zynga shares tumbled 54 cents, or 19 percent, to $2.28 in after-hours trading. 


Tuesday, August 14, 2012

This is definitely bad news for all of us..

FedEx and UPS are slowing down.. In general this is really bad news for all of us as these guys are best indicators of global economy.

If I take optimistic approach.. It could be possible that more and more people are buying local (going green and organic) or using e-signature kind of services.. ahhhh.. I totally forgot the main culprit.. blame it on Apple.. Apple delayed iPhone5 release. that is causing entire global economy especially this high end shipping type of work.. more and more I think about it.. I get certain that it is iPhone5's delayed launch which is causing all the global economy meltdown. FedEx and UPS should sue Apple ;-) unfortunately, Apple has entangled FedEx and UPS as well as their one of the bigest customer.

Jokes apart, I think we should brace ourselves for slowdown in coming months/years. Global economy is still in bad shape.. with slowdown in China and little bit in India... very few sweet spots are left. Europe is in bad shape and doesn't look like it is going to come out anytime soon.. US economy is still limping at the best.. We need something to drive growth.. in my view there has to be really strong spending on infrastructure. That is the only thing which can revive economy in both short term and long term if right kind of infrastructure projects are started.

After these recent blackouts in India.. India should be investing heavily into infrastructure.. Power, Road, Rail, Internet.. They have to do it and have to do it big.. I was hoping for massive investment from US in internet side.. but doesn't look like anything is going to happen any time soon.

Let us hope for best and do our part by spending more and more to avoid this impending slowdown!!



Buyouts to pare FedEx staff


Forecast for current quarter fell well below expectations


By Samantha Bomkamp


Associated Press


NEW YORK — FedEx will soon begin offering buyouts to U.S. employees in an effort to cut costs in the face of a weakening global
 economy. The world’s second-largest package delivery company hinted at cutbacks earlier this summer when it said that slowing economic growth would crimp its earnings well into next year. It has already removed some aircraft from its fleet of more than 600 to account for a loss of demand. While FedEx hasn’t yet decided how many positions will be eliminated, it is likely to focus on slow-growth areas like its Express and Services units.

Express is where FedEx got its start in 1971, and it’s still the company’s biggest segment by far. The speedy shipping division, which
 moves 3.5 million packages on an average day, has been hit hard as people shift to slower delivery methods to conserve cash. The unit is also being dragged down slowing Asian growth and a reduction in demand for Asian goods from the U.S. and Europe. The unit reported revenue of $26.5 billion in the latest fiscal year and has more than 146,000 employees worldwide — 102,000 of those in the U.S.

Services is FedEx’s behind- the-scenes logistics division, but it also includes FedEx Office, formerly Kinko’s. It was formed in 2000 and with annual revenue of $1.7 billion in 2012, is one of FedEx’s smallest units. It has 13,000 employees, all of whom are U.S. based.

FedEx said those that are close to retirement are also eligible for buyouts.

When it reported fourthquarter earnings in June, FedEx vowed significant cost cuts to offset any drop in shipments. Its forecast for the first-quarter, which
 ends this month, fell well below Wall Street expectations.

And second-quarter results released in late July by larger rival United Parcel Service suggested that the global economic slowdown may be even worse than FedEx anticipated.

UPS lowered its forecast for all of 2012 and said its third-quarter earnings will fall below last year’s results, with many customers fearing what’s in store for the second half of the year. Their skittishness was also felt in the second quarter, where UPS missed analysts’ expectations for both earnings and revenue.

Shares of FedEx fell 3 cents to close at $87.77 Monday. UPS lost 15 cents to hit $76.15.

Wednesday, July 18, 2012

Do we really need another Stimulus?

In my view, it is the Stimulus packages which is resulting in such a muted recovery. Recession comes for a reason.. that reason was very simple in this latest one.. it was suppose to clean up the mess created by banks and financial industries in and around housing area. It was suppose to clean it up and wipe out all the bad apples from The Big Apple.. I don't know why we tried to stop its natural process by inserting and saving and preserving those bad apples. We came up with all sorts of excuses but in the end net effect is going to be same.. Either you take a big hit once and be done with it or you try to defer those hits and then keep on prolonging sufferings for everyone in long term.

Moreover, because of these stimulus packages, I feel we have created business atmosphere where we are encouraging everyone to take even more risks and and continue to do this so called innovative but unruly behavior which by no means is acceptable business practice.

If we try to insert more of these stimulus, we will be further delaying this pain and suffering.. We better get rid of this and should clearly tell that neither we need any stimulus nor we will provide any. Let Nature Take care of it!!!!





Bernanke makes no pledge on new stimulus


Senate panel seeks to quiz him about Libor


By Binyamin Appelbaum


New York Times


WASHINGTON — Federal Reserve Chairman Ben Bernanke said Tuesday that the Fed was seeking greater clarity about the health of the recovery as it weighs the need for a new round of economic
 stimulus.

In testimony before the Senate Banking Committee, Bernanke also strongly defended the Fed’s actions after it learned of problems in 2008 with the London interbank offered rate, or Libor. And he renewed his warnings that congressional inaction on fiscal policy threatens to upend the recovery and tip the economy into recession.
Repeating a formula he first articulated earlier this summer, Bernanke told the committee that the Fed’s decision about additional economic stimulus would turn on its judgment about the likely pace of job growth in coming months.

The crucial issue, he said, is “whether or not there is in fact a sustained recovery going on in the labor market or are we stuck in
 the mud.”

Bernanke avoided commitments to Fed action, saying that Fed officials were continuing to review the data and to consider their options. He also noted that the Fed could take steps other than asset purchases.

“We are looking for ways to address the weakness in the economy should more actually be
 needed,” Bernanke told the committee.

The members of the committee seemed little interested in questions of monetary policy, however, instead preferring to question Bernanke about revelations that banks had manipulated Libor, a benchmark rate used in determining the value of a wide range of financial assets.

Saturday, July 14, 2012

Cash is King!! Again..

I disagree with the author or analysts mentioned in this article that only merchants benefit out of this settlement.. In my view ultimately it is Customers who benefit more from this.. Due to monopoly or collusion of Visa/Master Card processing companies there was additional fixed cost for merchants. That cost has to come up in some way or other and is ultimately to be paid by customer. Now, there are two aspects of this settlement. Merchants can either charge extra for Credit Card based payments or they can even give discount to cash customers. Every time I pay at any retail store by credit card, I know that I am paying almost 2.5% to visa/master card or even 3.5% to Amex. Out of that, I am at the most getting 1 or 2% back at the end of year or usually even more in form of points/rewards. Nevertheless, if I have option, I would like to pay merchant in cash as long as they give me 2.5% or even 2% cash discount. First, I am paying it immediately based on my cash availability (or bank balance if using checks or debit cards) and second most importantly, I am getting immediate gratification of saving 2% which could be substantial savings. But then, that is personal choice..

In case of US, I think, Visa/Master Card folks have already made majority of population addicted to credit cards and people do spend more than their monthly incomes and don't mind carrying credit card loan/balances. It will be difficult for majority of population.. but in general, it will be good..

Off course there are some advantages of this Credit Card transaction based business. First, you don't have to carry cash which if lost is gone.. where as credit cards you can cancel them immediately. Then, you get some kind of purchase protection plans or extended warranties or sometimes, even ability to fight with merchants for bad merchandise. I have rarely used them.. but they are there.. But are all these benefits worth paying 2.5-3.5% extra on all of your purchases??



CREDIT CARD FEES

Using plastic may get costlier


Visa, MasterCard and banks will pay more than $6 billion in suit settlement with merchants


By Jessica Silver-Greenberg


New York Times


Retailers will be able to charge their customers more for paying with credit cards under the terms of a multibillion-dollar settlement announced late in the day Friday.

MasterCard, Visa and major banks, including JPMorgan Chase and Bank of America, agreed to pay more than $6 billion to settle accusations that they engaged in anti-competitive practices in payment processing.

The settlement is the culmination of a lawsuit brought in federal court on behalf of roughly 7 million merchants in 2005. Merchants said the companies engaged in price-fixing to charge high fees for processing credit and debit card payments.

In addition, the merchants claimed, the payment processors unfairly banned stores from compelling their customers to use less expensive methods of payments like cash and checks.

“Our decision to settle is based on our belief that MasterCard and our stakeholders are best
 served by an amicable resolution,” Noah Hanft, MasterCard’s general counsel, said in a statement.





PAUL SAKUMA/ASSOCIATED PRESS

Under the settlement Friday, merchants can charge higher prices to consumers who opt to pay for their purchases with credit cards.

-------------------------------------------------------

Joseph Saunders, the chief executive of Visa, reiterated that the settlement was in the best interest of all the parties. Together, MasterCard and Visa have agreed to pay $5.2 billion. 

As part of the settlement, MasterCard and Visa additionally agreed to reduce the charge to process transactions for eight months. That fee reprieve is estimated by the plaintiffs to be worth $1.2 billion. 

“We think this is a historic victory,” said K. Craig Wildfang, a lawyer with Robins, Kaplan, Miller & Ciresi who represented the plaintiffs in the lawsuit. 

The retailers battling the card giants include Kroger and Safeway. 

Last year, retailers won another victory over what financial firms can charge them when customers use a different form of plastic, the debit card. 

Under the Dodd-Frank financial reform law, banks had to reduce “swipe fees” that they collect from merchants each time a customer makes a purchase with a debit card. 

Under the credit-card settlement Friday, worked out over months of negotiations, merchants can charge higher prices to consumers who decide to pay for their purchases with credit cards. 

A customer, for example, who buys a $100 item with a credit card might be charged an additional $2.50. A judge still needs to approve the settlement. 

Until now, the card companies banned merchants from adding such a surcharge, although gas stations and other retailers sometimes offered a discount for customers who paid in cash. 

Lawyers for the merchants said the ability to charge for credit card use would not necessarily result in greater costs for consumers, but rather can be used as a way to push the credit card processors to reduce the amount they charge merchants. 

Retailers have long sought to be able to charge customers more who pay with credit, reasoning that levying greater fees would help reduce their overall costs for accepting the plastic. 

Merchants pay roughly $40 billion in fees each year to MasterCard and Visa issuing banks, Wildfang said. 

The American Bankers Association said in a statement that while the banks “may not like all the results in this case, our industry is ready to put this matter behind us.” 

Frank Keating, the association’s president, said: “Let’s be clear — retailers, not consumers, benefit from today’s resolution.” 

“Let’s be clear — retailers, not consumers, benefit from today’s resolution.” 

— Frank Keating, president, American Bankers Association 

Friday, May 11, 2012

Silicon Valley's IPO momentum continues..

Even though we are waiting for most prized IPO of the decade (yet), smaller start-up continues their march and momentum towards IPOs.. making it close to dot.com boom time.. 
Which is good and can be seen in local economy. This is one of the best example, what rest of the US should be doing.. Innovate!!! and just create atmosphere for Innovation.. rest of the things will fall in place automatically.. 

That is much more easier said than done though. Many countries/states have tried to replicate and boot strap their local silicon valley or its equivalent.. but with hardly any major success But this doesn't mean that they should stop.. Ultimately, it is going to benefit them and rest of the world.. It will never backfire for sure.. 

So another question.. what is next big thing for silicon valley or high tech. Currently, it is era of Cloud, mobile, Social Collaboration (almost peaked, or may be not), Big Data and "Internet of Things" are most hot commodities in Valley.. What is next? 



Valley IPOs exceed expectations
Hot but Kwel Silicon Valley!!



Investors show faith in profitability of emerging startups


By Jeremy C. Owens


 


Two Silicon Valley companies found success on Wall Street in their initial public offerings Thursday, with a Mountain View-based company that makes processors for Apple’s iconic iPhone bringing in the most capital.

Audience, a 12-year-old company that makes processors that improve audio quality on mobile devices, priced its initial offering of shares higher than expected, but still found investors willing to pay more for the stock. Meanwhile, San Mateo-based WageWorks priced its stock lower than expected, then saw the price bounce above the range it expected to
 reap. Audience derives a large part of its business from Cupertino tech giant Apple, which uses the company’s technology in its popular mobile products. In Securities and Exchange Commission filings ahead of its IPO, the company said that 85 percent of its revenue in 2010 came from Apple; that percentage dropped to 75 percent in 2011, when Samsung stepped up its purchases from the company and accounted for 20 percent of its business. Many recent Silicon Valley IPOs have found success on Wall Street despite failing to post profits, with investors betting that revenue growth can push the startups to profitability. Audience, however, has shown revenue growth and profit recently. The company posted profits of $4.8 million and $8.3 million in 2010 and 2011, respectively, and made $4.2 million in the first three months of 2012. Annual revenue grew from $5.7 million in 2009 to $47.9 million in 2010 to $97.7 million in 2011, the company reported, and revenue for the first quarter of 2012 was $31.1 million.

The company sold 5 million shares at $17 apiece after initially filing at a range of $14 to $16 a share; existing shareholders sold another 270,000 shares at the same price. The sale netted a total of $89.6 million, with $85 million of that going to the company, before expenses, which it will use for general business purposes, according to the SEC filing.

Once the stock reached the Nasdaq under the ticker symbol ADNC, investors pushed the price up higher. Shares began selling Thursday morning for $19 apiece and never fell lower than $18.96 on the open market while rising as high as $20.20. The stock closed its first day of action at $19.08, 12.2 percent higher than the IPO price.
“Audience is really alone out there within a very good market niche and that’s what has been required in past tech offerings that have really worked well,” Scott Sweet, senior managing partner at IPO research firm IPO Boutique, told Reuters on Wednesday.

San Mateo-based software company WageWorks also had a strong first day of trading Thursday, with its stock rising 40 percent from the IPO price after the company dropped the price just before the offering. The company had planned to go public more than a year ago, but put off the process due to market uncertainty.

WageWorks, which offers cloud software to manage employee benefits, sold 6.5 million shares at $9 apiece after originally aiming for a range of $10 to $12, bringing in $58.5 million before expenses. The stock then debuted Thursday on the New York Stock Exchange under the ticker symbol WAGE for $9.99 and began to rise. Shares traded in a range from $9.75 to $12.60, with that high price coming at the very end of the session and representing the closing price.

While the stock closed at $12.60, a 40 percent increase from the IPO price, it was trading for less than $11 a share just 5 minutes before the market closed and dipped
 back sharply in after-hours trading, when shares were selling for closer to $11.

The two successful IPOs continue a strong run for Silicon Valley stock debuts in the run-up to Facebook’s highly anticipated public stock launch, expected May 18.

An official with the Nasdaq stock exchange said Thursday that he doesn’t expect the rate of successful Silicon Valley IPOs to end any time soon.

“Facebook is obviously the most anticipated IPO in history and once that IPO comes out, I’m sure we’ll see several companies look to take advantage of that market,” Bruce Aust, executive vice president of Nasdaq’s Global Corporate Client Group, said in a New York presentation to analysts, according to Reuters.

“I go (to Silicon Valley) pretty much every other week because it is a huge opportunity when we look at what’s going on with social media, what’s going on with Apple and the applications and the ecosystem that is being created by that, and the gaming industry that is being created by social media. There is just tremendous opportunity and we’re meeting with 20 or 30 companies a week,” he said.
Contact Jeremy C. Owens at 408-920-5876; follow him at Twitter.com/mercbizbreak.

Friday, March 30, 2012

Is world's 8th largest economy really on recovery path?

If you guessed it.. California.. you are right about it!!! California economy happens to be approximately 2 trillion worth!! and if and IF it was a nation on its own, it would have be world's 8th Largest economy!!


I think California is biggest state of US in terms size of economy.. Northern California's Silicon Valley and Southern California's Entertainment Industry is more or less flagship which almost defines US in rest of the world. I agree.. New Yorkers.. don't get angry.. I was coming to you.. You also define US big time.. it doesn't mean rest of the states are Chillar Party (coin change - sorry folks, couldn't come up with better term in English).  for those who are interested in finding about California.. please visit Wikipedia page for California for more interesting facts an figures.. http://en.wikipedia.org/wiki/California

Any how.. coming back to basics.. Is California really recovering? One point of time unemployment was around 12%. Recently it has come back to less than 10%. Which is progress.. and once people's mentality changes about California, that it is back on track.. there could be easy rush towards further growth and development.

There are some dangers ahead.. Weather is one of them.. This year's almost negligible snow falls on Sierra mountains has forced irrigation water cut for central valley farmers. Which will definitely hit the progress.. Central Valley is responsible for almost half of the entire US' fresh farm produce.. I agree that US mostly imports.. but whatever is freshly produced locally, our California's central valley contributes half of it. So it could be big hit to those farming community. Fortunately or unfortunately there share in economy is still very small but job impact could be high.

Everyone is saying that housing has bottomed out.. but I thought I heard this more than year back and still prices are going down and down.. Hopefully this time economists are correct!! Even I want to see some equity in my house back. Once housing turns around, that would be big sentimental shift and that can drive many other things here. If you are educated or rather than that, if you are in High Tech there is already almost boom time for jobs. But beyond high tech things are still bad. Hopefully this growth in Hight Tech will spill over to other areas of economy and spur growth over there..

http://www.mercurynews.com/business/ci_20275337/california-economic-outlook-brightens-bit-new-study-says


Forecast: California to continue job growth


Researchers see state jobless rate dipping below 10% next year


By George Avalos


 


The economic outlook for California has perked up and the state should escape double-digit jobless levels more quickly than previously thought, researchers said Wednesday.

“Things look slightly better,” said Jerry Nickelsburg, a senior economist with the UCLA Anderson Forecast, which released its quarterly outlook.

California is expected to suffer a 10.8 percent average jobless rate this year, but that should improve to an average of 9.8 percent next year.

That outlook is brighter than the group’s previous view. In December, the Anderson Forecast predicted a 10.5 percent unemployment rate for 2013.

“We are seeing improvement in the labor markets,” Nickelsburg said.

What’s more, job growth should steadily improve in the coming years, the researchers predicted.

The number of payroll jobs in California increased 1.2 percent last year, according to the Employment Development Department.

The Anderson Forecast said that pattern of job growth should continue, with statewide payroll increases of 1.3 percent this year, 1.9 percent next year and 2.5 percent in 2014, the economists said. “Things do look like they are going to be a little better in California, given the recent sharp drop in the state’s unemployment rate,” said Jeffrey Michael,
 director of the Stockton based Business Forecasting Center at University of the Pacific. 

The nationwide job market is also on the upswing. But growth in the United States still doesn’t look that great, according to a report for the Anderson Forecast that was prepared by senior economist David Shulman. 

“We are growing, but curb your enthusiasm,” Shulman said. 

The economy added an average of 250,000 jobs in the first two months of this year. That would work out to a rate of 3 million jobs a year. But Shulman said he doesn’t think that kind of growth can be sustained. 

Instead, the nation is more likely to add 160,000 to 200,000 jobs a month on average, he said. That would equate to an annual pace of 1.2 million to 2.4 million jobs. 

The strong job growth in January and February was boosted by mild weather around the country, Shulman said. 

“There was more construction, more outdoor work, people went to restaurants and the mall,” he added. 

The rebound in California is being led by industries that are strong in the Bay Area. 

“Tech industries, professional, scientific and technical services, health care, computers and electronics — those are all doing very well,” Nickelsburg said. 

More recently, improvements have begun to surface in some industries that have lagged. Retail, along with leisure and hospitality, are rebounding, Nickelsburg said. 

The Bay Area is likely to remain in the vanguard of the recovery for California, analysts said. 

“The Bay Areahasdefinitely been leading the rebound for the last six months or so,” said Michael, the UOP economist. “We think the Bay Area will continue to outpace the rest of the state in job gains.” 

During the one-year period that ended in February, job totals in the Bay Area grew 1.9 percent, more than double the pace of statewide job growth of 0.9 percent. 

“The rebound started in Silicon Valley and now the improvement is spreading throughout the Bay Area,” Michael said. 

Contact George Avalos at 925-977-8477. Follow him at Twitter.com/george_avalos. 

Tuesday, January 10, 2012

Don't know if it is good news or Bad..

This can only happen in America.. Surge in Consumer Debt is considered good thing.. my conventional wisdom tells me to reduce debt and stay debt free as soon as possible.. However, here it is considered a good news.. actually it is considered, kind of Consumer's Vote of Confidence in Economy :-)

This was partly fueled by higher Car Sales (i.e. higher Car loans..) and Holiday sales on Credit Card.. In my view Consumers were holding too much for too long and I guess, holiday spirit (don't ask me) made them these stupid decisions of higher spending on their credit cards.. It is not so good news as per me.. but again.. I am not an economist.. I am simply a common man..


Here is the detailed news from our local mercury news..

Consumer debt surges, boding well for economy


By Martin Crutsinger


Associated Press


WASHINGTON — Americans are feeling confident enough in the economy to go back to a time-honored tradition — taking on a
 little extra debt.Consumer borrowing surged in November by $20.4 billion, the Federal Reserve said Monday. It was the third straight increase and the largest monthly gain in a decade.

The jump in borrowing was largely because people took out more loans to buy cars and swiped their credit cards frequently to
 purchase holiday gifts. In November, total consumer borrowing rose to a seasonally adjusted $2.48 trillion — nearly at pre-recession levels and up from a post-recession low of $2.39 trillion in September 2010.

Since then, consumers have increased their borrowing in 13 of the past 14 months. Americans are taking on more debt after seeing the unemployment rate drop and the economy improve, albeit modestly. Many are also leaning on their credit cards and loans to make up for wages that haven’t kept pace with
 inflation this year. Holiday sales were solid in November, and the U.S. auto industry had its two best sales months for the year in November and December. The Fed’s credit report appeared to reflect those sales. The category that measures credit card debt rose in November by $5.6 billion, the most since March 2008. The gauge that tracks auto loans and student loans increased $14.8 billion, nearly matching July’s gain that was the biggest since February 2005.

Monday, December 26, 2011

Brazilian economy overtakes UK's, says CEBR

Brazilian economy overtakes UK's, says CEBR. Russia & India forecasted to be 4th, 5th respectively by 2020.


Interesting forecast by CEBR.. Important thing is that overall World economy should be growing... Aditya better learn good Hindi and be ready to get Indian H1 ;-)


here is the table:


here is the link for details on article.. 


http://www.bbc.co.uk/news/business-16332115