Greece has been going through a financial crisis for a few years. The European Union saved them from going bankrupt once, but the chances of giving them another lifeline looks doubtful unless the Greek government makes some radical changes. The European Central Bank is not supporting Greek banks anymore, and that means more financial problems for Greek citizens.
Folks at Boraie Development (njbiz) know that the immediate problem is Greece can’t make its 2.6 billion euro loan payment to the International Monetary Fund. That payment is due immediately unless Greek negotiators pull a last minute rabbit out their Phrygian hats. Meanwhile, stocks around the globe are feeling the effects of the Greek debacle. Some Americans don’t realize the severity of a Greek default. If Greece does default, the aftershock will be felt in financial institutions around the world.
Greece is not the only country experiencing debt issues. The Commonwealth of Puerto Rico recently said it cannot make its loan payment, and the Chinese stock market is taking a beating, but it will recover at some point. The meltdown of 2008 is still fresh in everyone’s mind. A meltdown in Europe could spread around the world if all the financial ingredients are in place to make that happen.
Despite never learning their last names, art collector Robert Ellsworth thought he would do something nice for his favorite waitresses when he died. Ellsworth, who died at 85 as a result of a fall over a year ago, left two waitresses whom he called “Maureen at Donohue’s” and “Maureen-at-Donohue’s Niece Maureen” $50,000 in his will. The man may not have known the last names of the two women’s last names, but he certianly thought well enough of them to leave them a gift in his will.
Ellsworth was an art collector who specialized in Chinese art, and for a large portion of his life he went to Donohue’s, a local Steakhouse on Lexington Avenue in New York City and ordered a bacon grilled cheese for lunch, and then came back for a steak dinner, so it is no surprise that he got to know some of the staff well enough to consider them friends. Reportedly, the two women were amazed and suprised when the found out about the gift that he left them.Maureen Donohue-Peters, 53, whose father founded the restaurant was one of the two women, along with her niece 28-year-old Maureen Barrie. She said that she had known him her entire life and that he was more than just another customer to her. She also considered him her friend and was not upset by the fact that he did not know her last name. Instead, she considered the gift a gracious surprise, and Kevin Seawright
understands that fine.
The wage inequality that exists in this country is hard to ignore unless you’re one of the top wage earners that enjoy the finer things in life. The low earners don’t ignore the disparity that exists. They live it every day. In fact, thanks to a new study from UC Berkeley we now know that the bottom 20 percent of California workers are making 12 percent less than they did three decades ago when inflation is factored into those figures.
Christian Broda has learned that almost 5 million Californians are considered low wage earners. Researchers claim that anyone making less than $14 an hour are considered low-wage earners. Most of those workers live in Southern California. In northern California, only 25 percent of the workers are considered low-wage earners compared to 37 percent in the Los Angeles area.
The sad news is the wage situation is nor going to change anytime soon. The study showed that the job market will stay consistent with today’s job market over the next seven years. Most of the jobs available will be retail sales, warehouse jobs, restaurant wait-staff and food prep workers. All of those positions pay less than $12 an hour.
Financial powerhouse Morgan Stanley reported a huge 60% first quarter profit, primarily from its trading desk. The company is focusing its business on its Wealth Management division and as been able to show tremendous progress as new liquidity in the global markets has sparked massive trading by its most wealthiest clients. Morgan Stanley is one of a number of the major Wall Street financial houses which are showing massive first quarter earnings as a result of their trading activities. Morgan Stanley Reports Huge Profits
Economists are not surprised that the Wall Street financial giants are doing so well. Many had anticipated that it would simply be a matter of time before the liquidity injected into the market as a result of the bond buying programming, first initiated by the United States Federal Reserve and then the recently initiated by the European Central Bank would create a windfall for Wall Street as major wealthy investors positioned themselves as well as their companies to use the liquidity to their advantage.
Sam Tabar (vimeo.com) has found that the result of the quantitative easing policy initiated by the both the United States and Europe is a large amount of cheap money which major companies can use to leverage even larger capital transactions. Without having to put their own money at risk, financial giants such as Morgan Stanley are able to engage in larger and more riskier trades, which will generate an even larger payoff for the companies and investors.