Capital flows to Latin America: recent developments

The external environment has deteriorated sharply as a result of the spiraling financial turmoil, and has led to a weakening in commodity prices and fears of a worldwide recession. Latin America and the Caribbean's fastest expansion in 40 years may be threatened as the global credit crunch makes financing scarce and squeezes demand for the region's commodities. This time around the region is better positioned to weather the crisis than in the past, given improvements in macroeconomic and financial policies as well as a reduced net dependency on external capital inflows. However, Latin American markets are feeling the effects of the crisis through a slowdown in capital inflows, large declines in stock price indexes, significant currency adjustments and an increase in debt spreads. Volatility has soared, with the closely watched Chicago Board Options Exchange Volatility Index moving to an all-time high of 70.33 on October 17, indicating that fear (rather than greed) has been ruling the markets.After reaching record lows in May 2007, emerging markets bond spreads are now above pre-Asian crisis levels. The JPMorgan EMBI+ Latin American composite widened by 146 basis points in the third quarter, with spreads reaching 448 basis points at the end of September. Spreads have widened sharply in recent weeks as foreign investors cut back regional exposure for the safety of U.S. Treasuries. The ongoing lack of liquidity and subsequent liquidation of assets is leading to a collapse in asset prices and a sharp widening in spreads. Daily spreads in October have risen to levels not seen since December 2002, making it much more difficult for governments that need financing to get it. Risk premiums for Latin corporates and sovereigns have risen substantially, but have remained well below U.S. junk (high-yield) bonds. Latin corporates are facing a steep rise in foreign exchange borrowing costs (although less than firms in other emerging markets), which raises concerns that refinancing risks will climb.So far, emerging markets vulnerabilities have been more focused on corporates, as sovereigns have improved public debt dynamics and countries' financing needs are under control. Market performance has been driven by the rapid deterioration of emerging markets bank and corporate market, as well as ongoing losses in emerging markets equities. From January to September 2008, the Morgan Stanley Capital International (MSCI) Latin American Index lost almost 28%, while the Emerging Markets Index lost 37% and the G-7 Index lost 24%. While in 2007 the Latin America component gained 47%, almost nine times as much as the MSCI-G7 index for developed markets, since mid-September 2008 stocks in Latin America have been doing worse than stocks in developed countries, as concerns about access to credit and the adverse impact of sharp falls in commodity prices and in local currencies contribute to increased risk aversion and to outflows of capital. Many governments in the region have used revenue from the commodity boom to pay down debt and build reserves. Now, facing a global financial crisis and the threat of recession in developed countries, the biggest question for Latin America is how long and deep this cyclical downturn will be, and how much it is going to reduce commodity prices. Prices for commodities such as soy, gold, copper and oil, which helped fund the region's boom, have fallen 28% since their July 2 high, according to the RJ/CRB Commodity Price Index. According to Morgan Stanley (in a September 29 report), should prices return to their 10-year average, Latin America's balanced budgets would quickly revert to a deficit of 4.1% of GDP. As risk aversion increases, investors are rapidly pulling out massive amounts of money, creating problems for local markets and banks. There is an ongoing shortage of dollars (as investors liquidate assets in Latin American markets), and as currencies depreciate, inflation concerns increase despite the global slowdown. In Brazil and Mexico, central banks deployed billions of dollars of reserves to stem steep currency declines, as companies in these countries, believing their local currencies would continue to strengthen against the U.S. dollar, took debts in dollars. Some companies also made bets using currency derivatives that have led to losses in the billions of dollars. Dramatic currency swings have caused heavy losses for many companies, from Mexico's cement giant Cemex SAB to the Brazilian conglomerate Grupo Votorantim. Mexico's third-largest retailer, Controladora Comercial Mexicana, declared bankruptcy recently after reporting huge losses related to exchange rate bets. As concerns about corporate exposure to dollar-denominated derivatives increases, yields on bonds issued by many of Brazil's and Mexico's leading companies have started to rise, sharply raising the cost of issuing new debt. Latin American external debt issuance came to a halt in the third quarter of 2008, totaling only US$ 690 million. The cost of obtaining loans for capital expenditures, M&A and debt refinancing is also rising substantially for Latin American corporates amid contagion from the U.S. financial crisis. According to bankers, a protracted trend of shortening tenors and widening spreads has intensified in the past few weeks, indicating that bank lending is quickly following the way of bonds and equity. Finally, money transfers from Latin American migrants are expected to decline for the first time this decade, as a result of economic downturns in the U.S. and Spain, inflation and a weaker dollar. The Mexican Central Bank announced that money transfers from Mexicans living in the U.S. dropped a record 12.2% in August. In 2008, migrants from the region will send some 1.7% less in remittances year-on-year when adjusted for inflation, according to the IADB, compounding the adverse effects of the deepening financial turmoil.

The current financial and economic crisis: empirical and methodological issues

In this paper we describe the main causes of the recent financial crisis as a result of many theoretical, methodological, and practical shortcomings mostly according to heterodox, but also including some important orthodox economists. At theoretical level, there are problems concerning teaching and using economic models with overly unrealistic assumptions. In the methodological front, we find the unsuspected shadow of Milton Friedman’s ‘unrealisticism of assumptions’ thesis lurking behind the construction of this kind of models and the widespread neglect of methodological issues. Of course, the most evident shortcomings are at the practical level: (i) huge interests of the participants in the financial markets (banks, central bankers, regulators, rating agencies mortgage brokers, politicians, governments, executives, economists, etc. mainly in the US, Canada and Europe, but also in Japan and the rest of the world), (ii) in an almost completely free financial and economic market, that is, one (almost) without any regulation or supervision, (iii) decision-taking upon some not well regarded qualities, like irresponsibility, ignorance, and inertia; and (iv) difficulties to understand the current crisis as well as some biases directing economic rescues by governments. Following many others, we propose that we take this episode as an opportunity to reflect on, and hopefully redirect, economic theory and practice.

IANR's Contributions to Nebraska's Future

One in four Nebraskans depends upon agriculture for employment. That fact, found in the 2001 Nebraska Agriculture Fact Card, a cooperative effort of the Nebraska Bankers Association, the Nebraska AgRelations Council, and the Nebraska Department of Agriculture, underscores the importance of agriculture to Nebraska, and the importance of the work conducted in the Institute of Agriculture and Natural Resources.

Na 1 Nachlass Max Horkheimer, 3 - Korrespondenzen u.a. mit Julius S. Bach (p. I 2, 1-130)

33 Briefe zwischen Julius S. Bach und Max Horkheimer, 1937-1941; 1 Brief von Julius S. Bach an Mary von Meldelsohn, 28.08.1940; 24 Briefe zwischen Richard Bach und Max Horkheimer, 1938-1940; 1 Abschrift eines Briefes von Oscar W. Gross an Emil de Leuw, 1938; 1 Brief von A. Bailer an Mr. Iggersheimer, 01.05.1940; 1 Brief von Max Horkheimer an Bailliere, Tindall & Cox London, 05.07.1949; 1 Brief von Beatrix Baird an Max Horkheimer; 5 Briefe zwischen Leonard Balet und Max Horkheimer, 1938-1949; 2 Briefe zwischen John Simon Guggenheim Memorial Foundation New York und Max Horkheimer, 22.11.1948, 05.01.1949; 1 Brief von W. H. de Graaff, Ladislaus Bálint an Max Horkheimer, 11.05.1938; 6 Briefe zwischen Bank of Manhattan Company New York und Max Horkheimer, 1934-1935; 6 Briefe zwischen Ladislaus Bálint und Max Horkheimer, 1934-1935; 2 Briefe zwischen der Bank of the Manhatten Company in New York und Max Horkheimer, 14./15.11.1934; 5 Briefe zwischen der Bankers Trust Company und Max Horkheimer, 1934; 1 Brief von R. Bárány an Max Horkheimer, 05.05.1933; 5 Briefe zwischen Hans Baron und Max Horkheimer, 1936; 3 Briefe zwischen Salo W. Baron und Max Horkheimer, 1941-1942, 16.04.1940; 1 Brief zwischen A. Barratt Brown und Max Horkheimer, 01.10.1936;

Le Goff : Balance crítico de un legado

Los primeros trabajos de Jacques Le Goff, sobre mercaderes, banqueros e intelectuales de la Edad Media, presentan cualidades que anuncian su desarrollo posterior: débil teoría económica y mayor desarrollo sobre historia de las ideas. A partir de 1964, con la publicación de La civilización del occidente medieval, se produce un cambio. Ese cambio se inscribe en una nueva orientación general de la escuela de Annales: el estudio de las mentalidades. Le Goff pretende realizar un análisis de la mentalidad del hombre medieval. Su estudio se basa principalmente en textos eruditos eclesiásticos. Se demuestra en este artículo que ese tipo de fuentes permiten acceder a la mentalidad de la parte sacerdotal de la clase de poder. De manera secundaria, Le Goff estudió fuentes literarias que permiten acercarse a la mentalidad de los caballeros. Para el análisis de los campesinos y de distintos sectores subalternos se necesitarían otro tipo de fuentes que nunca fueron utilizadas por Le Goff. Este análisis mantiene algunas semejanzas con el materialismo histórico, pero también tiene profundas diferencias con la doctrina de Marx. En base a esto se determina el alcance del legado de Le Goff

Le Goff : Balance crítico de un legado

Los primeros trabajos de Jacques Le Goff, sobre mercaderes, banqueros e intelectuales de la Edad Media, presentan cualidades que anuncian su desarrollo posterior: débil teoría económica y mayor desarrollo sobre historia de las ideas. A partir de 1964, con la publicación de La civilización del occidente medieval, se produce un cambio. Ese cambio se inscribe en una nueva orientación general de la escuela de Annales: el estudio de las mentalidades. Le Goff pretende realizar un análisis de la mentalidad del hombre medieval. Su estudio se basa principalmente en textos eruditos eclesiásticos. Se demuestra en este artículo que ese tipo de fuentes permiten acceder a la mentalidad de la parte sacerdotal de la clase de poder. De manera secundaria, Le Goff estudió fuentes literarias que permiten acercarse a la mentalidad de los caballeros. Para el análisis de los campesinos y de distintos sectores subalternos se necesitarían otro tipo de fuentes que nunca fueron utilizadas por Le Goff. Este análisis mantiene algunas semejanzas con el materialismo histórico, pero también tiene profundas diferencias con la doctrina de Marx. En base a esto se determina el alcance del legado de Le Goff

Le Goff : Balance crítico de un legado

Los primeros trabajos de Jacques Le Goff, sobre mercaderes, banqueros e intelectuales de la Edad Media, presentan cualidades que anuncian su desarrollo posterior: débil teoría económica y mayor desarrollo sobre historia de las ideas. A partir de 1964, con la publicación de La civilización del occidente medieval, se produce un cambio. Ese cambio se inscribe en una nueva orientación general de la escuela de Annales: el estudio de las mentalidades. Le Goff pretende realizar un análisis de la mentalidad del hombre medieval. Su estudio se basa principalmente en textos eruditos eclesiásticos. Se demuestra en este artículo que ese tipo de fuentes permiten acceder a la mentalidad de la parte sacerdotal de la clase de poder. De manera secundaria, Le Goff estudió fuentes literarias que permiten acercarse a la mentalidad de los caballeros. Para el análisis de los campesinos y de distintos sectores subalternos se necesitarían otro tipo de fuentes que nunca fueron utilizadas por Le Goff. Este análisis mantiene algunas semejanzas con el materialismo histórico, pero también tiene profundas diferencias con la doctrina de Marx. En base a esto se determina el alcance del legado de Le Goff

Air Mines. Urban Space Station

Air Mines The sky over the city's port was the color of a faulty screen, only partly lit up. As the silhouette of nearby buildings became darker, but more clearly visible against the fading blur-filter of a background, the realization came about how persistent a change had been taking place. Slowly, old wooden water reservoirs and rattling HVAC systems stopped being the only inhabitants of roofs. Slightly trembling, milkish jellyfish-translucent air volumes had joined the show in multiples. A few years ago artists and architects seized upon the death of buildings as their life-saving media. Equipped with constructive atlases and instruments they started disemboweling their subjects, poking about their systems, dumping out on the street the battered ugliness of their embarrassing bits and pieces, so rightly hidden by facades and height from everyday view. But, would you believe it? Even ?old ladies?, investment bankers or small children failed to get upset. Of course, old ladies are not what they used to be. It was old ladies themselves that made it happen after years of fights with the town hall, imaginative proposals and factual arguments. An industry with little financial gains but lots of welcome externalities was not, in fact, the ground for investment bankers. But they too had to admit that having otherwise stately buildings make fine particulate pencils with their facades was not the worse that could happen. Yes, making soot pencils had been found an interesting and visible end product of the endeavor, a sort of mining the air for vintage writing tools one can actually touch. The new view from the street did not seem as solid or dignified as that of old, and they hated that the market for Fine Particulates Extraction (FPE, read efpee) had to be applied on a matrix of blocks and streets that prevented undue concentration of the best or worse solutions. It had to be an evenly distributed city policy in order for the city to apply for cleaning casino money. Once the first prototypes had been deployed in buildings siding Garden Avenue or Bulwark Street even fast movers appreciated the sidekick of flower and plant smell dripping down the Urban Space Stations (USS, read use; USSs, read uses) as air and walls cooled off for a few hours after sunset. Enough. It was all nice to remember, but it was now time to go up and start the lightweight afternoon maintenance of their USS. Coop discussions had taken place all through the planning and continued through the construction phase as to how maintenance was going to be organized. Fasters had voted for a pro, pay a small amount and let them use it for rent and produce. In the end some neighbors decided they were slow enough to take care and it was now the turn. Regret came periodically, sometimes a week before, and lasted until work actually started. But lately it had been replaced by anxiety when it needed to be passed over to the next caretaker. It did not look their shift was good enough and couldn?t wait to fix it. Today small preparations needed to be made for a class visit next day from a nearby cook school. They were frequenters. It had not been easy, but it shouldn?t have been that hard. In the end, even the easiest things are hard if they involve a city, buildings and neighbors. On the face of the data, the technicalities and the way final designs had been worked out for adaptation to the different settings, the decision of where to go was self evident, but organization issues and the ever-growing politics of taste in a city of already-gentrified-rodents almost put the project in the frozen orbit of timeless beautiful future possibilities. This is how it was. A series of designs by XClinic and OSS had made it possible to adapt to different building structures, leave in most cases the roof untouched and adapted a new technology of flexing fiberglass tubes that dissipated wind pressure in smooth bending.......

Comment on Rule 14a-8(i)(9), Securities and Exchange Commission, June 30, 2015

The Securities and Exchange Commission has been analyzing its interpretation under Subsection (i)(9) of Rule 14a-8. This provision allows for the exclusion of shareholder proposals that conflict with those submitted by management. The staff has been examining its interpretation since instructed to do so by the chair of the SEC following a no action appeal in a case involving Whole Foods. A number of letters and memos submitted in connection with the review have analyzed the issue. At least one asserted that any change in interpretation required the Commission to go through the process of notice and comment. This letter asserts that notice and comment is not required, relying extensively on Perez v. Mortgage Bankers Association.

Improving the Success of Wetland Mitigation Banking: Lessons Learned in Monitoring and Compliance

Wetlands that are lost to development are not effectively compensated by the current wetland mitigation banking regulatory program due to inadequate monitoring and compliance. Based on a critical investigation of two wetland mitigation banks in Colorado described herein, recommendations are given to improve the effectiveness of the wetland mitigation banking program. The recommendations to improve mitigation banking are to specify and follow comprehensive monitoring and reporting plans, develop solid contingency and adaptive management plans, utilize specially developed checklists and templates, and impose enforcement when compliance is not met. Implementing these recommendations will assist regulators and bankers in achieving more effective wetland mitigation and will help the United States reach its no net loss of wetlands goal.

Letters from Joel Barlow to William Tudor,

Two letters regarding the shipment of books from Paris to Boston.

Letter from John Belknap to William Tudor,

One letter in which Belknap declines Tudor’s offer to partner in business speculation.

Letter from Beers to William Tudor, undated

One letter written to Tudor in the care of Frederick Degen in Naples. In French.

Letter from Henry Boit to William Tudor,

One letter regarding Boit’s business enterprises.

Letter from David Cargill to William Tudor,

Two letters regarding shipment of books and news of mutual business associates.