abu yahya's definitions
German, *noun*: "foundation"; a type of business organization dating from the late 19th century in which one or more companies are owned by a foundation. The foundation, in turn, is governed not by shareholders, but by whomever is chartered as a stakeholder in the firm, such as workers, financial planners, local residents of the town where the firm operates, and so on.
The biggest company owned by a foundation is Robert Bosch GmBH, which is 92% owned by Robert Bosch Stiftung (Stuttgart, Germany). Bertelsmann AG (Guetersloh, Germany) is owned by the Bertelsmann-Stiftung, which appears to possess the largest endowment of any German foundation; the affiliated company owns an enormous media empire.
Plural: Stiftungen
The biggest company owned by a foundation is Robert Bosch GmBH, which is 92% owned by Robert Bosch Stiftung (Stuttgart, Germany). Bertelsmann AG (Guetersloh, Germany) is owned by the Bertelsmann-Stiftung, which appears to possess the largest endowment of any German foundation; the affiliated company owns an enormous media empire.
Plural: Stiftungen
The prevalence of the *Stiftung* in German industry probably contributed to the excellence of German manufactures, since the affiliated companies were managed by engineers.
by Abu Yahya February 23, 2009
Get the Stiftung mug.(VERB) to ignore the fact that a particular action was a crime, and focus instead on possible problems it may cause for the perpetrator. Named for Charles Maurice de Talleyrand-Périgord (1754-1838), who famously remarked of Napoleon's murder of the Duc d'Enghein, "It was worse than a crime... It was a blunder."
Sometimes this is misspelled "tallyranding." It's not certain that Talleyrand ever said it; it was probably attributed by his many enemies.
WHY IT'S BAD
In March 1804, when Napoleon Bonaparte was consul of the French Republic, he became aware of the fact that a leader of the royalist opposition was hiding out across the border of France. Napoleon had him kidnapped, brought back to Strasbourg, "tried," and put to death. The unfortunate young man was never accused of doing anything illegal; he had not violated the laws of the French Republic because he was not in France, and when he had been, he was serving the previous government.
Whoever actually said "...worse than a crime...a blunder" was ignoring the fact that it was a crime to murder an innocent person, and focusing instead on the fact that it was DUMB. In some cases, such as this one, it's a reasonable thing to do; but if it becomes a habit then moral judgment is deliberately suspended.
It's the asshole's substitute for moral fiber.
Sometimes this is misspelled "tallyranding." It's not certain that Talleyrand ever said it; it was probably attributed by his many enemies.
WHY IT'S BAD
In March 1804, when Napoleon Bonaparte was consul of the French Republic, he became aware of the fact that a leader of the royalist opposition was hiding out across the border of France. Napoleon had him kidnapped, brought back to Strasbourg, "tried," and put to death. The unfortunate young man was never accused of doing anything illegal; he had not violated the laws of the French Republic because he was not in France, and when he had been, he was serving the previous government.
Whoever actually said "...worse than a crime...a blunder" was ignoring the fact that it was a crime to murder an innocent person, and focusing instead on the fact that it was DUMB. In some cases, such as this one, it's a reasonable thing to do; but if it becomes a habit then moral judgment is deliberately suspended.
It's the asshole's substitute for moral fiber.
There is altogether too much Talleyranding going on. This wasn’t a blunder; it was a crime.
(Taken from the comments of Jim Henley's blog, *Unqualified Offerings*, "I Already Shot You"--May 31, 2010)
(Taken from the comments of Jim Henley's blog, *Unqualified Offerings*, "I Already Shot You"--May 31, 2010)
by Abu Yahya June 3, 2010
Get the Talleyranding mug.(ECONOMICS) the administrative committee of the Federal Reserve System that actually administers monetary policy. There are 12 members of the FOMC.
The 12 members include all seven governors of the Federal Reserve Board (FRB).
In addition, representatives of each Federal Reserve Bank are eligible to serve on the FOMC. The FOMC implements sales/purchases of treasury securities (open market operations) in order to create credit at member banks. This is the process by which banks with FRS membership can create money. The difficulty of open market operations lies in ensuring that rates for short term securities remain lower than those for long term securities. Otherwise, monetary tightening cannot succeed in curbing inflation.
The Federal Reserve Bank of New York (2nd FRB) is by far the most important of the 12 district banks. Historically, its president has often gone on to become either chairman of the Federal Reserve Board, or else Secretary of the Treasury (as, for example, Treasury Secretary Timothy Geithner). Nearly all bank holding companies have subsidiaries in the 2nd District, and the 2nd District is uniquely guaranteed a seat on the FOMC. The other 11 rotate, with 4 taking a turn of the FOMC at any given time.
The 12 members include all seven governors of the Federal Reserve Board (FRB).
In addition, representatives of each Federal Reserve Bank are eligible to serve on the FOMC. The FOMC implements sales/purchases of treasury securities (open market operations) in order to create credit at member banks. This is the process by which banks with FRS membership can create money. The difficulty of open market operations lies in ensuring that rates for short term securities remain lower than those for long term securities. Otherwise, monetary tightening cannot succeed in curbing inflation.
The Federal Reserve Bank of New York (2nd FRB) is by far the most important of the 12 district banks. Historically, its president has often gone on to become either chairman of the Federal Reserve Board, or else Secretary of the Treasury (as, for example, Treasury Secretary Timothy Geithner). Nearly all bank holding companies have subsidiaries in the 2nd District, and the 2nd District is uniquely guaranteed a seat on the FOMC. The other 11 rotate, with 4 taking a turn of the FOMC at any given time.
The Federal Open Market Committee conducts transactions in treasury securities at the Open Market Window.
by Abu Yahya May 5, 2010
Get the Federal Open Market Committee mug.*noun*; prolonged economic crisis characterized by drastic (i.e., >20%) decline in output, reduction in employment, and deflation. Other technical conditions include a liquidity trap and "permanent" (i.e., persisting in many sectors for several quarters) failure to reach equilibrium.
Usually the word "depression" (when referring to economics) is used to refer to the Great Depression, although in fact there were eight incidents of a global depression between 1815 and 1922. These were
--- 1815-21
--- 1832-33
--- 1837-44
--- 1854-57
--- 1867-68
--- 1876-79
--- 1893-96
--- 1920-22
In addition, there have been many localized depressions, panics (e.g., the 1907 Panic {USA}, followed by the Mexican Depression of 1908), and recessions.
DIFFERENCE BETWEEN RECESSION & DEPRESSION
The technical distinction between a recession and depression can vary, although economists usually agree on which is which. In Keynesian economics, a depression is defined by the existence of a flat liquidity-money (LM) curve (which means that interest rates have no influence on people's determination to hold their wealth as cash); and/or a nearly vertical investment-savings (IS) curve (which means interest rates have no influence on the willingness of entrepreneurs to expand/continue operations).
In contrast, a recession is a much less drastic event. Interest rates still have influence on investment and liquidity, and there is no deflation. Conventional fiscal policy and monetary policy, combined and in moderate doses, can restore full employment.
Neoclassical economics/New Classical economics defines a recession as a shift in people's income/leisure preferences as the result of a technology shock. The technology shock sharply reduces the returns to labor, so workers are paid less and many withdraw their labor from the market. In a depression, the technology shocks are compounded and cause a permanent change in the production function; large numbers of enterprise are no longer viable.
More generally, a recession involves the downward phase of a routine business cycle; these typically occur every three-seven years. A depression represents a partial collapse of the industrial system, and a comprehensive collapse of the financial system.
Usually the word "depression" (when referring to economics) is used to refer to the Great Depression, although in fact there were eight incidents of a global depression between 1815 and 1922. These were
--- 1815-21
--- 1832-33
--- 1837-44
--- 1854-57
--- 1867-68
--- 1876-79
--- 1893-96
--- 1920-22
In addition, there have been many localized depressions, panics (e.g., the 1907 Panic {USA}, followed by the Mexican Depression of 1908), and recessions.
DIFFERENCE BETWEEN RECESSION & DEPRESSION
The technical distinction between a recession and depression can vary, although economists usually agree on which is which. In Keynesian economics, a depression is defined by the existence of a flat liquidity-money (LM) curve (which means that interest rates have no influence on people's determination to hold their wealth as cash); and/or a nearly vertical investment-savings (IS) curve (which means interest rates have no influence on the willingness of entrepreneurs to expand/continue operations).
In contrast, a recession is a much less drastic event. Interest rates still have influence on investment and liquidity, and there is no deflation. Conventional fiscal policy and monetary policy, combined and in moderate doses, can restore full employment.
Neoclassical economics/New Classical economics defines a recession as a shift in people's income/leisure preferences as the result of a technology shock. The technology shock sharply reduces the returns to labor, so workers are paid less and many withdraw their labor from the market. In a depression, the technology shocks are compounded and cause a permanent change in the production function; large numbers of enterprise are no longer viable.
More generally, a recession involves the downward phase of a routine business cycle; these typically occur every three-seven years. A depression represents a partial collapse of the industrial system, and a comprehensive collapse of the financial system.
From 1929 to 1933 the U.S. price level fell 25 percent. Many economists blame this deflation for the severity of the Great Depression. They argue that the deflation may have turned what in 1931 was a typical economic downturn into an unprecedented *sic* period of high unemployment and depressed income.
N. Gregory Mankiw, William M. Scarth, *Macroeconomics: Canadian Edition*, 2nd ed. (2003) p.318
N. Gregory Mankiw, William M. Scarth, *Macroeconomics: Canadian Edition*, 2nd ed. (2003) p.318
by Abu Yahya March 7, 2009
Get the depression mug.(FINANCE) a financial derivative whose underlying asset is a stock. The simplest kinds include the equity swap and the option.
As opposed to currency derivatives, interest rate derivatives, commodity derivatives, and so on. An equity swap typically involves an "equity side" of the transaction AND something else, like interest rates or oil prices.
Equity derivatives can be written on indices (e.g., the S&P 500, the FTSE-100, NASDAQ) as well as on stocks. In fact, they are often bought "out of the money" by mutual fund managers as insurance against a catastrophic decline in the fund value.
As opposed to currency derivatives, interest rate derivatives, commodity derivatives, and so on. An equity swap typically involves an "equity side" of the transaction AND something else, like interest rates or oil prices.
Equity derivatives can be written on indices (e.g., the S&P 500, the FTSE-100, NASDAQ) as well as on stocks. In fact, they are often bought "out of the money" by mutual fund managers as insurance against a catastrophic decline in the fund value.
One other reason that poison pills are back in favor is the growth of synthetic equity derivative swap transactions, where a “short party” agrees to pay a “long party” the cash flows from a particular amount of a target company’s stock. In exchange, the long party agrees to pay a fee and to cover any decrease in the market value of the stock ... Through such transactions, a long party can suddenly become a significant stockholder of a target company without warning.
--Dykema Gossett & Andrew H. Connor "The poison pill resurgence," Lexology (15 March 2010)
--Dykema Gossett & Andrew H. Connor "The poison pill resurgence," Lexology (15 March 2010)
by Abu Yahya April 15, 2010
Get the equity derivative mug.(FINANCE) a situation in which an investor owns financial instruments (shares, bonds, financial derivatives, etc.) that will make the most money IF some other thing declines in value.
Therefore, one always has to take a short position on something in particular. A short position on gold means the investor expects gold to decline in value in the near future, and has bought various things to make money if it does.
Some ways to take a short position on X include:
(1) buying a put option on X
(2) writing a call option on X
(3) borrowing X and selling it (shorting a stock)
#3 is the classical way to take a short position. It was dangerous because a skillful trader could squeeze the shorts using a corner.
Therefore, one always has to take a short position on something in particular. A short position on gold means the investor expects gold to decline in value in the near future, and has bought various things to make money if it does.
Some ways to take a short position on X include:
(1) buying a put option on X
(2) writing a call option on X
(3) borrowing X and selling it (shorting a stock)
#3 is the classical way to take a short position. It was dangerous because a skillful trader could squeeze the shorts using a corner.
BILL: I guess you took a bath when the stock market tanked, huh?
ANA: Nope. I took a short position on all of the nine largest banks. Did rather well, thank you very much.
BIL: Sweet!
ANA: Nope. I took a short position on all of the nine largest banks. Did rather well, thank you very much.
BIL: Sweet!
by Abu Yahya April 5, 2010
Get the short position mug.Capital investment in a foreign country that takes the form of purchases of securities (stocks, bonds, and commercial paper) in the companies of firms based in that country. Contrast to FDI.
by abu yahya September 28, 2008
Get the portfolio investment mug.