(FINANCE) Used either as a noun: a situation in which a trader controls the supply of a traded item, such as shares of stock, supplies of a commodity, etc.
Or else, used as a verb: to obtain control over the supply of a thing, so that one can drive the price up to extremely high levels.
Cornering the market for anything (or getting a corner) is extremely difficult and requires not only immense amounts of money (usually borrowed for the purpose), but also timing and the ability to bluff opponents.
A corner is ultimately a long position in the sense that it is a direct attack on investors taking a short position.
Or else, used as a verb: to obtain control over the supply of a thing, so that one can drive the price up to extremely high levels.
Cornering the market for anything (or getting a corner) is extremely difficult and requires not only immense amounts of money (usually borrowed for the purpose), but also timing and the ability to bluff opponents.
A corner is ultimately a long position in the sense that it is a direct attack on investors taking a short position.
The corner must be timed very precisely, because it cannot last for more than a very short time. Even when the the price of the thing (like, say, silver) goes up to very, very high levels, more supplies cannot come onto the market or the corner will be lost.
At the same time, there has to be a target of the corner--some group of people who have to buy the cornered item no matter how high the price goes (otherwise, the quantity demanded will just go to zero). For this reason, corners are nearly always part of an attempt to squeeze the shorts.
At the same time, there has to be a target of the corner--some group of people who have to buy the cornered item no matter how high the price goes (otherwise, the quantity demanded will just go to zero). For this reason, corners are nearly always part of an attempt to squeeze the shorts.
by Abu Yahya April 05, 2010
*noun*; a subdivision of economics that focuses on addressing recessions by stimulating supply, rather than demand. During a recession, supply siders recommend cutting taxes rather than increasing government spending.
"Supply side" is in contrast to traditional practitioners of Keynesianism, "demand siders" who believe the main fiscal policy tool for recessions should be increased government spending.
Both supply siders and demand siders believe the government is responsible for formulating effective fiscal policy during recessions.
The most famous advocate of supply side economics was Arthur Laffer.
"Supply side" is in contrast to traditional practitioners of Keynesianism, "demand siders" who believe the main fiscal policy tool for recessions should be increased government spending.
Both supply siders and demand siders believe the government is responsible for formulating effective fiscal policy during recessions.
The most famous advocate of supply side economics was Arthur Laffer.
When Ronald Reagan ...promised to cut taxes ...he claimed tax revenue would go up, not down... as the economy boomed in response to lower rates. Since then, supply side economics ... has become a central tenet of Republican political and economic thinking in the country.
"McCain sticks to Supply Side Economics..." *International Herald Tribune* (24 March 2008)
by Abu Yahya March 06, 2009
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
(FINANCE) largest private equity fund manager in the world, by assets under management ($90.5 billion-2010). The Carlyle Group is actually a group of 67 funds which are, in turn, managed by a wholly private (i.e., non-listed, non-traded) limited liability company (LLC). In order to be a partner in the Carlyle Group, one needs to (a) have an enormous amount of money to invest for a very long time, and (b) have some peculiar connection of value to the existing partners.
About 69% of fund commitments by TC Group, LLC, are for buyouts; the profits--which are immense--come when it resells its portfolio. For example, it bought and restructured United Defense Industries in 1997, cashed out by '04, and made profits of about a billion on that particular deal. It has bought many defense firms and restructured them, while using its special connections to open doors for new categories of defense contracts.
One major investor is Prince Al-Walid bin Talal, who is also the owner of the largest block of shares in News Corp outside of the Murdoch family.
About 69% of fund commitments by TC Group, LLC, are for buyouts; the profits--which are immense--come when it resells its portfolio. For example, it bought and restructured United Defense Industries in 1997, cashed out by '04, and made profits of about a billion on that particular deal. It has bought many defense firms and restructured them, while using its special connections to open doors for new categories of defense contracts.
One major investor is Prince Al-Walid bin Talal, who is also the owner of the largest block of shares in News Corp outside of the Murdoch family.
The collection of influential characters who now work, have worked, or have invested in the Carlyle Group {include}... John Major, former British Prime Minister; Fidel Ramos, former Philippines President; Park Tae Joon, former South Korean Prime Minister; Saudi Prince Al-Walid bin Talal; Colin Powell; James Baker III; Caspar Weinberger; Richard Darman, former White House Budget Director; the billionaire George Soros, and even some bin Laden family members; Karl Otto Poehl, former Bundesbank president; the late Henri Martre, who was president of Aerospatiale; and Etienne Davignon, former president of the Belgian Generale Holding Company.
{"Carlyle Empire" by Eric Leser, Le Monde, April 29, 2004}
{"Carlyle Empire" by Eric Leser, Le Monde, April 29, 2004}
by Abu Yahya September 01, 2010
(IRANIAN HISTORY) (1882-1967) Democratically elected Prime Minister of Iran from 1951 to 1953. Ousted by coup d'etat organized by MI-6 and the CIA after he nationalized the assets of the Anglo Iranian Oil Company (BP, p.l.c.).
Mossadegh was involved in the 1924 Constitutional Revolution that was supposed to have ended autocracy in Iran and replaced it with a democratic republic. Instead, Reza Khan (Shah Reza) replaced the Qejars as as monarch. Later, Mossadegh rose to power because of rising anger at colonial deal between AOIC and Iran. His nationalization of AOIC triggered a balance of payments crisis for the UK, and two years later he was ousted by Operation Ajax. After he was overthrown, Shah Muhammad Reza was a dictator, and dependent on the USA to remain in power.
Mossadegh was involved in the 1924 Constitutional Revolution that was supposed to have ended autocracy in Iran and replaced it with a democratic republic. Instead, Reza Khan (Shah Reza) replaced the Qejars as as monarch. Later, Mossadegh rose to power because of rising anger at colonial deal between AOIC and Iran. His nationalization of AOIC triggered a balance of payments crisis for the UK, and two years later he was ousted by Operation Ajax. After he was overthrown, Shah Muhammad Reza was a dictator, and dependent on the USA to remain in power.
Muhammad Mossadegh was a true Iranian patriot whose overthrow in a British Petroleum-instigated coup poisoned relations between the USA and the Islamic world.
by Abu Yahya July 19, 2010
(ECONOMICS) the annual increase in financial claims owed to the people of particular country, MINUS any increase of claims that same people owe abroad. The net annual increase in assets resulting from commerce with the rest of the world.
COMPONENTS
There are three components of current accounts:
(1) trade balance (surplus or deficit)
(2) foreign factor income (income minus outgo)
(3) net foreign aid
Usually the largest component of a current account surplus is the trade surplus, although in 1990 the USA actually had a quarterly current account surplus caused by massive "foreign aid" (actually, payments to defray the cost of waging the first Gulf War.
COMPONENTS
There are three components of current accounts:
(1) trade balance (surplus or deficit)
(2) foreign factor income (income minus outgo)
(3) net foreign aid
Usually the largest component of a current account surplus is the trade surplus, although in 1990 the USA actually had a quarterly current account surplus caused by massive "foreign aid" (actually, payments to defray the cost of waging the first Gulf War.
The South Korean won was lower late Tuesday as investor appetite for risk{y} assets was damped by broad-based losses in regional stock markets, led by a sharp fall in Chinese shares.
The local currency largely brushed off news that the country's current account surplus rose in May to a six-month high of $3.83 billion.
Traders said any positive impact from the current account data was offset by data showing the capital account balance... posted a net outflow of $11.96 billion in May, compared with a $8.56 billion inflow in April.
The local currency largely brushed off news that the country's current account surplus rose in May to a six-month high of $3.83 billion.
Traders said any positive impact from the current account data was offset by data showing the capital account balance... posted a net outflow of $11.96 billion in May, compared with a $8.56 billion inflow in April.
by Abu Yahya June 29, 2010
(FINANCE) bonds issued by the treasury of a country.
In the USA, the US Department of the Treasury serves as the underwriter for the federal government; it floats bonds and short term securities ("paper"), which is then used by central banks around the world as hot money.
Includes
--the t-bill: short term (>91 days); discounted
--the treasury note: up to 10 years; coupons
--the treasury bond: longer than 20 years; coupons
In the USA, the US Department of the Treasury serves as the underwriter for the federal government; it floats bonds and short term securities ("paper"), which is then used by central banks around the world as hot money.
Includes
--the t-bill: short term (>91 days); discounted
--the treasury note: up to 10 years; coupons
--the treasury bond: longer than 20 years; coupons
by Abu Yahya May 05, 2010