Lift the minimum wage and employment still rises? How to anger the establishment and win a Nobel Prize – ABC News

They knew they had two very similar labour markets,
but they also realised they had a control group (Pennsylvania) where
nothing was going to change, and a treatment group (New Jersey) where nothing was going to change except for one variable: the increase in the minimum wage.

So, they surveyed 410 fast food restaurants in New Jersey and Pennsylvania before and after the rise in the minimum wage.

“Our empirical findings challenge the prediction that a rise in the minimum [wage] reduces employment,” they said.

“Relative to stores in Pennsylvania, fast food restaurants in New Jersey increased employment by 13 per cent.”

China’s property sector stalked by Evergrande default fears as developer misses third deadline – ABC News

  • Evergrande faces staggering debts of roughly $400 billion
  • The firm missed its third round of bond payments on Monday as investors wait to be paid $200 million in coupon payments
  • It will be formally declared in default if it doesn’t meet its October 18-19 payment deadline…

‘China’s financial system could collapse’: What the Reserve Bank’s Evergrande bombshell means for Australia – ABC News

… “If they act too quickly in addressing these

vulnerabilities, confidence in the implicit guarantees that underpin much of China’s financial system could collapse, which would lead to

financial distress,” the RBA says.

“In contrast, if they act too slowly, the probability of more severe financial stress in the future will increase.

“Continued bailouts also risk further entrenching perceptions of implicit guarantees.”…

The end phase of a company following its bubble phase.

The end phase of a company following its bubble phase

by tonytran2015 (Melbourne, Australia).

Click here for a full, up to date ORIGINAL ARTICLE and to help fighting the stealing of readers’ traffic.

(Blog No. 3xx).

1. Why does a Private Company want to become listed on some Stock Exchange?

When a company goes public (has become listed on some Stock Exchange), it is often hyped up with future and imaginary potentials. They often are:
a. Better tax treatment for share holders,
b. Better management by complying with the rules of Stock Exchanges.
c. Better access to capital from Superannuation Funds (Pension Funds) looking for somewhere to invest.
d. Better access to loans from banks to maximize the return on investment on every of its projects,
e. Better opportunity in taking in projects which would otherwise be too big for an unlisted company,
f. All the above enhance the price of its current shares.

2. What may happen to an Exchange Listed Company during its Bubble Phase?

a. Once listed on a Stock Exchange, the Management of the company grows and gains higher payments. When this is not carefully controlled, as is often the case, managers may demand god-like status and excessive payments which eat up a large proportion of income of the company.

b. The company is often operated with no “lazy(?) capitals” (such as lands, buildings), no “lazy(?) reserve” (such as cash or treasury notes) so that its earning to capital is kept high, justifying the high payments to its manager.

c. The company in its high gearing state is then valued by “market analysts” and it will be highly praised for being “lean”.

d. It share price (in its high gearing state) is compared to those with stable earnings (and in low gearing state) and said by “market analysts” to be undervalued. After the praise, its share price increases and become highly overvalued.

e. The (overvalued) company with high market capitalization is then offered loans, which are small compared to its (over-valued) capitalization but too big for its earning, and offered big projects its management has no previous experience with.

f. The highly paid management knows the appropriate time to and often does parachute out with golden handshakes when the company is still going strong.

3. The end phase of an over-valued company.

a. The replacement management team is then faced with a company on its last phase of solvency: High interest repayments and difficulty in issuing new shares at now suspected(?) overvalued prices.

b. High interest rates, high management payments are setting up an insolvency trap for the company.

c. Often personnels of the management team can sense the incoming disaster and many of them follow their colleagues and quickly resign from their jobs.

d. Any unexpected problem in operation or in trading condition can trigger insolvency of the company.

e. As the company is lean, with no lazy reserve, no lazy capital, it can only end up in bankrupcy.

e. Investors and creditors often lose ALL of their investment in the company.

4. Should investors avoid over-valued companies?

Yes, avoid them as they often fail spectacularly or at best slowly deflate to sustainable levels.

It is interesting to watch the development of events surrounding the Chinese developper giant Evergrande.


The Futures and Derivatives Markets (Part 1)., The Futures and Derivatives Markets, Part 2: Rigging the indices to win,

The Parasites of Western Economy, Part 5: Company Asset Strippers and Conspirators posted on 13 August 2017 ,



, , , , , Cashless bartering for survival, Federal Reserve Bank charges undeserved fees to Americans., A satirical guide to signs of an impending crash for small investors, Your fiat money (Part 2), Your fiat money, Bankers given outrageous incomes by their boards, Signs pointing to an impending crash for small investors,Bankers earn more than interest margin on secured loans, Can most pension funds last?, … all


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The Economics Of Disaster Capitalism
Authored by Chris Macintosh via, If we look at what is taking place, what seems glaringly obvious to me is that there is a coordinated demolition of entire countries, their business sectors, and with this financial ruin a top-down approach to “fixing” the ruin is being enacted. Step no…

Only about 10% of federal rent assistance funds have been distributed to Americans as MASS EVICTIONS loom — RT USA News

Comment by tonytran2015: If the US government was really sincere, it would have done it the simplest way. The simplest, constitutional way of helping is to give those people vouchers to pay their rents.

A US federal rental assistance program has 89% of its funds
still waiting to be distributed as eviction moratoriums passed to help
low-income households during the Covid-19 pandemic could potentially be
expiring soon.
The Emergency Rental
Assistance Program gave out approximately $1.7 billion in July,
according to US Treasury Department figures. That money brings the total
amount of funds released to approximately $5.1 billion of the $46.5
billion rental aid program.

The White House, however, has defended
the slow pace, with Gene Serling, who oversees pandemic relief
programs, saying over one million payments have been sent to families,
which equates to just over 10% of the total funds first authorized by
Congress in December.

Bill Gates has major shares in both Pfizer & BioNTech, and an FOI has revealed he is the primary funder of the MHRA | Rangitikei Environmental Health Watch

Comment by tonytran2015: When heading Microsoft, B. Gate was adamant (around 2000) that old computer software could not be donated to poor countries for free due to Microsoft’s copyrights. Fortunately, M.Shuttleworth offered Ubuntu software for free instead. The Operating Systems by Microsoft on PC’s showed that “computer-virus” and “anti-virus” were a nice lucrative business.

No surprizes? The photo of Bill there shows him in his truer scamming light, shot from well circulated video footage of him rocking to and fro in court trying to fool the judge about what he didn’t understand about his monopolizing behaviour over MS. After that episode he rebranded himself as the philanthropist. Why would you trust this man with your health? EWR)


(I recommend you visit their site & peruse their news list … )

An investigation has revealed that the Bill & Melinda Gates Foundation are the primary funders of the UK’s Medicine & Healthcare products Regulatory Agency, and that the Foundation also owns major shares in both Pfizer and BioNTech.

The Medicine & Healthcare products Regulatory Agency (MHRA) extended the emergency authorisation of the Pfizer / BioNTech mRNA jab in the UK to allow it to be given to children between the ages of 12 – 15 on the 4th June 2021.


Singer sewing machines: ageing starlet (or outright scam?) | HobbyCouture

Comment by tonytran2015: This should be a good case study on the benefit of Merger and Acquisition.

Discover how history turned this market leader into a has-been.

… it shows why it’s essential to choose the brand of your sewing machine carefully …

… It shows what is sometimes hidden behind a big name, and why the choice of brand should be a primary consideration, not an afterthought.

Pfizer raises 2021 COVID-19 vaccine sales forecast to $45.7 billion – ABC News

  • There’s been general positive attitude towards Pfizer’s vaccine during the pandemic
  • Their sales forecast is based on signed deals for 2.1 billion doses
  • Pfizer said it has shipped 1 billion doses since December

Bank of America Slides After Trading Revenue Slump, $2.2 Billion Reserve Release Saves The Day
Bank of America Slides After Trading Revenue Slump, $2.2 Billion Reserve Release Saves The Day The bank earnings parade continued on Wednesday morning when Bank of America reported disappointing earnings that missed on the top line as a result of disappointing trading revenue like JPM yesterday with FICC sliding 38% Y/Y due to “more benign…