June 19, 2011
There is a high degree of uncertainty in predicting future commodity prices that baffles those engaged in monetary policies, academics, economists, and the everyday consumer.
High frequency trading (see Direct Edge 2005-) using proprietary algorithmic trading programs accounted for over 25% of all shares traded by the buy side by 2009. In 2009 73% of US equity trading volume was attributed to the activities of a small number of high-frequency trading firms, including divisions of Goldman Sachs and UBS but many more obscure, startup firms (with only 12-100 employees) such as Archelon, EWT Trading, Getco and Peak6 (Heires, Katherine. 2009-07-20Code Green: Goldman Sachs & UBS Cases Heighten Need to Keep Valuable Digital Assets From Walking Out The Door. Millions in Trading Profits May Depend On It Securities Industry News). The entire event/analysis/action cycle has been reduced for traders with the fastest machines to a few milliseconds. Fast computing not rational decision-making counts. Arnuk and Saluzzi (2009) call these activities toxic trade and claim that the high frequency trader seize the best deals at the expense of real investors whose machines are not as fast.
NYSE specialists no longer provide price stability. With the advent NYSE Hybrid, specialist market share has dropped from 80% to 25%.
There is a saturation of equity quotes with the entire event/analysis/action cycle has been reduced for some traders to a few milliseconds.
CQS Capacity (Quotes per Second) capacity was increased was increased by 33% to 1 million quotes/second on July 4, 2010 and on July 5th there was a micro-burst of activity. July 5th was 33% more active than any trading day in history.] CQS is already planning to increase capacity an additional 25% in October 2011. How long before that limit is hit ? We think it will be hit the very next trading day. If 3 years ago someone told us that equity quote traffic rates for NYSE, AMEX and ARCA issues would exceed 1 Million/second (not even counting Nasdaq stocks), we would have thought the market would have entered the greatest bull or bear market ever known. Instead, you can’t even recognize from a 1 minute chart where these bursts of out-of-control quote traffic rates occur. And when they do occur, a significant percentage of those quotes will have already expired before they even leave the exchange network. At these rates of growth, we will no longer have a diversity of trading participants with accurate market data, and regulators will have no hope of ever piecing together what happened after the next disaster. It took the SEC five months just to assemble equity data to analyse the flash crash [of May 6, 2010]. When the next disaster strikes, they will have to contend with 5 to 10 times more data (“Equity Quote Saturation” Nanex).”
“The market itself creates events in the form of imbalances of supply and demand that could be of value to traders who are fast enough to respond to them. There is no doubt that being faster than others entails private advantage, but is it socially beneficial? The first mover in the case of fundamental news imposes costs on other traders, and high adverse selection costs could cause market failure. The fast traders that take advantage of market events could provide valuable liquidity to those seeking immediacy and hence enhance market quality, but could also step ahead of large orders in the book, thereby imposing costs on other liquidity providers (as described in the specialist context by Seppi (1997)) (Hasbrouck, Joel; Saar, Gideon. “Low-Latency Trading“. p. 1. Retrieved 18 July 2011).”
Canadian-born, Harvard-educated economist Dean of the University of Toronto’s Rotman School of Management, Roger L. Martin argued in his publication entitled Fixing the Game: How Runaway Expectations Broke the Economy, and How to Get Back to Reality (2011-05) “The mayhem in our capital markets is ultimately the unfortunate effect of tightly tying together two different markets: the real market and the expectations market.” In her article printed in The Atlantic Lane Wallace (2009-07-07) admired Martin’s use of an easy-to-understand football analogy to explain how flawed economic theories about compensation and investment contributed to the 2008 melt-down on Wall Street. I have been unable to find the original Financial Times article to which Wallace referred but Martin has used the example of the New England Patriots’ stellar 16-0 record in their 2007 winning streak in Fixing the Game (2011) and this section is posted on Huffington Post. In it Martin explained how MVP Quarterback Tom Brady, the head coach and the team’s superlative 2007 performance was perfect even in measurable “real” terms. He uses Brady’s real performance value as an analogy for real stock market values and real embodied customers. He contrasts this with the speculators’ expectations market based on the point spread. The Patriots’ performance for example was only mediocre because the Patriots covered the point spread only ten times. Martin explained that “In betting vernacular, a favored team covers the spread when it wins the game by more than the point spread. In this case, the point spread is the moral equivalent of the stock price, in that it captures the consensus expectations of all bettors (Huffington Post).” Martin argued that it is impossible to meet bettors’ expectations forever and expectations grow to unattainable levels in both football and the stock market. In “American capitalism, CEOs are compensated directly and explicitly on how they perform against the point spread; that is, against expectations (Martin 2011 cited in Huffington Post).” And CEOs increasingly focus on managing share price over the short run something that is easier to manipulate. Shareholders are better off however when the focus of their investment managers is on the long term, on increasing share price more or less forever. In this horse-race spread-covering betting scenario, the interests of shareholders and executives are not aligned.
In 2009 (Stiglitz Commission 2009).” warned that financial speculation exacerbated the mortgage meltdown, the phenomenal increase in the price of energy including oil. As the price of energy increases countries’ purchasing power decreased. “The transfer of income from those who suffered from these price increases to those who benefited weakened global aggregate demand and contributed to the global imbalances which played an important role in the crisis (Stiglitz Commission 2009).”
There are those who claim that perceptions not realities create oil prices (Dicker 2011:309). He argued that the illogical outcome of BP disaster (the decrease in the price of oil when the supply was less than demand) is another example of the way in which oil markets and prices are influenced by quick analysis of traders and investors looking to benefit from a well-placed bet not by legitimate changes in fundamental supply.
While gurus such as Bernstein (2000) argue that gambling is for anyone but speculation is for professionals, the chaos and unpredictability of the current global economy have been linked to a growing culture of gambling in futures trading rather than level-headed professionalism. Gamblers create risk simply by placing a bet; professional speculators “transfer risk from the hedgers to the speculators” and it therefore called risk management instead of gambling.
“It rained last night so the price of soy beans will be down today.” Although the basis of fundamental analysis in economics is supply and demand, the actual fundamental analysis of specific markets that might generate accurate price predictions are complicated as numbers of factors overlap and massive quantities of data need to be considered. The simple equation involves how much of a commodity or service are buyers willing to pay at a given time and place. There used to be a correlation between price and consumption. Factors that impact on price of commodities include the state of the economy (local, regional, national and international – inflationary, recessionary with rising or falling employment), availability of alternate products or services, storage possibilities, weather, seasonality, price cycles, price trends, government subsidies, political influences, protectionist attitudes, international tensions, fear of war, hoarding, stockpiling, demand for raw materials (sugar, petroleum, copper, platinum, coffee, cocoa), currency fluctuations, health of the economy, level of unemployment, housing starts. Most technical systems are not effective in making traders money.
In examining implications regarding monetary policies the US Federal Reserve Board theoretical analyses often focus on: “commodity prices and inflation, the role of labor costs in the price-setting process, issues arising from the necessity of making policy in real time, and the determinants and effects of changes in inflation expectations (Bernanke 2008-06-09).”
While some argue that “policymakers care only about expected economic outcomes and not the uncertainty surrounding those outcomes” Pesenti and Groen claim that policymakers are concerned about the risks to their projections as well as the projections themselves (Pesenti and Groen 2011-03)?” Should and how does this affect the way in which policies are made?
Selected Timeline of Critical Events
2011-08-09. “In recent days, the high-frequency operation at Tradeworx Inc., a Red Bank, N.J. firm, juggled its largest daily volumes since its 2009 launch, resulting in some of its most profitable days on record, according to its founder, Manoj Narang. The reason: High-speed firms’ profits are highly correlated with increased volatility in the market. The more stock are rising and falling, the better they are able to make profits on the difference between buy and sell prices. A gauge of volatility, the Chicago Board Options Exchange Volatility Index, or VIX, rose more than 100% from Aug. 1 to Aug. 8. (Patterson, Scott. 2011-08-09. “High Frequency Traders Win in Market Bloodbath.” Wall Street Journal Blog Marketbeat.)”
2011-08-13 ANDREW ROSS SORKIN: “[T] he issue of what’s called high-frequency trading and electronic trading that she just mentioned is absolutely right. The reason why you’re seeing these huge gains and huge losses is because there are people who are making these decisions based on the headlines, but then there are computers, there’s machines that are effectively taking over and exacerbating the ups and the downs, because what they’re looking to do is — these are machines with algorithms that are looking to pick up pennies, lots of pennies in many instances. But they’re looking for one stock to go up and one stock to go down, and they see different correlations. And that’s really exacerbating the big moves in volatility we’re seeing in the stock market these days.” CATHERINE MANN: [The] ordinary investor, the person on Main Street is affected by these gyrations. [The ordinary investor] feels a disconnect between the big profits that some Wall Street, the big financials or non-financials companies get by trading on this high frequency and the ups and the downs, and the average person on Main Street. “The disconnect there has been there for a while. It’s been worsened because of the lack of credit being extended to Main Street, as — as — even though the banks have gotten better, in better shape, they have not extended any credit to Main Street. And so that disconnect is worse. And they really feel like Wall Street is out to get them. And they’re probably right about that (“Uncertainty, Computerized Trading Fuel Wall Street’s Wild Ride.”)
2011-07-07 Melloy, John. 2011-07-07. “New Way High-Speed Traders Get Edge on Investors.” Fast Money. CNBC.com
2011 High-frequency trading firms using high-frequency techniques (software-based mechanisms: high frequency algorithmic trading) earned $12.9 billion in profit in the last two years (2009-2011), according to TABB Group, a specialist on the markets.
2011-07-18 The price of gold climbed to c.”$1604 an ounce, putting the precious metal on track for a 10th-straight rise and another record settlement. The U.S. dollar strengthened against the euro but declined versus the yen. Crude-oil prices fell below $95 a barrel (Wall Street Journal).”
2011-07-10 Anderlini, Jamil. “Trade data show China economy slowing.” “In a sign that industrial activity in the country was moderating, imports of key commodities like crude oil, aluminium and iron ore all fell in June from a month earlier. Crude oil imports fell to the lowest level in eight months and were down 11.5 per cent from the same month a year earlier and, while copper imports rebounded in June, they were significantly down on 12 months ago.”
2011-07-08 U.S. stocks slumped. Crude-oil futures fell 2.9% and traded just below $96 a barrel (Wall Street Journal).
2011-07-04 “Speculators unburned.” The Economist. Oil traders are free to bid for it. And it seems they did. The Department for Energy says its auction was heavily oversubscribed with bids from more than 90 parties. For reference, there are 148 refineries in America, but most are owned by a few major players such as Exxon, who would do the actual bidding. Traders who anticipate the oil price will rise, and have the capacity to store oil, can buy physical stocks now, and sell oil forward. As long as the price rises enough to cover storage costs, they will turn a profit. If a trader was able to purchase West Texas Intermediate—the oil held in America’s Strategic Petroleum Reserve (SPR)—at the spot price on June 24th, they would already be sitting on a tidy profit.
2011-07-04 Capacity (Quotes per Second) CQS capacity was increased by 33% to 1 million quotes/second. On July 5th, 2011 there was a micro-burst of activity: 33% more active than any trading day in history (Nanex Research).
2011-06-27 “The London Stock Exchange (LSE.L) has launched a super-fast trading service in its latest bid to court more business from high-frequency trading (HFT) firms.” (Jeff, Luke. 2011-06-27. “LSE makes latest high-frequency move.” London:Reuters.
2011-06 “A recent report produced by a joint advisory committee of the SEC and the Commodity Futures Trading Commission urged the SEC to work with the Financial Industry Regulatory Authority and the exchanges “to develop effective testing of sponsoring broker-dealer risk management controls and supervisory procedures.The concern from Washington prompted a group of 12 brokerages to collaborate on a set of risk guidelines intended for adoption across the industry. Working under the aegis of FIX Protocol Limited, the group recently published a checklist of 13 risk controls it hopes will deter the acceptance of orders that might disrupt the marketplace. FIX Protocol is a pan-industry group that promotes and supports electronic trading through the ubiquitous FIX communications standard. The guidelines devised by the members of the FPL Risk Management Working Group focus strictly on algorithmic and direct-market-access orders for cash equities. The members include the nine largest trading firms, which account for the vast majority of industry orders (“New Checks Unlikely to Satisfy SEC.” Traders Magazine).”
2011-06-28 “Futures advanced a second day as Brent crude oil climbed. Gasoline and heating oil rose as crude and equities gained and the dollar weakened against the euro.”(Powell 2011-06-28).
2011-06-23 In its commitment to keep oil markets well-supplied the Paris-based International Energy Agency (IEA) announced that the 28 IEA member countries for the third time in the IEA history, they would release 60 million barrels of oil (2 million barrels of oil per day from their emergency stocks over an initial period c. June-July 15) to offset the ongoing disruption of oil supplies from Libya. By May 30 132 mb of Libyan light, sweet crude oil was not available to the market and analysts expect this to continue through 2011. This supply disruption has been underway for some time and its effect has become more pronounced as it has continued. The normal seasonal increase in refiner demand expected for this summer will exacerbate the shortfall further. Greater tightness in the oil market threatens to undermine the fragile global economic recovery (International Energy Agency 2011-06-23).
2011-06-16 Fletcher, Sam. “Energy prices tumble; Brent-WTI spread at 3-month low.” PennEnergy- Energy News. West Texas Intermediate to “the weakest level” since March, said Olivier Jakob at Petromatrix, Zug, Switzerland. In Houston, analysts at Raymond James & Associates Inc. said the European debt crisis and continued worries of a weakening US economy …
2011-06-15 Britain’s top banks will have to protect their retail business from investment banking activities (casino banking) after “the government backed a plan to overhaul the industry and shield taxpayers from future losses (more).” See Financial Times also.
2011 Debates in the UK on how to make our financial institutions safer include ring-fencing utility operations from casino banking, new capital requirements and living wills. Megabanks (Barclays, Lloyds, RBS and Santander) were rescued by taxpayers as well as through worsening savings and loan rates. Read more: http://www.thisismoney.co.uk/money/article-2004841/SUNDERLAND-ON-SATURDAY-Banks-need-customers-queue.html#ixzz1QbQ38DAGSee Sunderland “The scale of the taxpayer bailout of the banking system has led to lengthening dole queues and severe cuts to public spending (more).”
2011 Megabank Barclays was ordered by the Financial Services Authority to pay a fine of £7m and to repay up to £60m to mainly elderly customers who had been duped into gambling their savings on the stock market. Read more
2011-06-17 In the Alberta oil sands, oil prices tripled from their 2009 lows. Drilling activity was on the upswing. Unemployment was falling and oilsands investment was surging (Read more)
“When you see oil prices spiking by $2, $3 or $5 a day, that’s not a situation Alberta wants to be in because it’s not driven by (market) fundamentals, it’s being driven by speculators”.
2011-05-02 through 2011-05-07 The price of silver dropped 25% in just four trading days.
2011-04 Investors pushed the price of silver up 57% in 2011 before a massive correction started on May 2, 2011.
2011-03 In the wake of the U.S. real estate collapse, declining returns in the bond market, worries about a global slowdown and fears that after a nice run, equities have nowhere to go but down, big hedge funds and other sophisticated market pros have been loading up on cotton, corn, soybean oil and other soft commodities. Milner, Brian.
2011-03. “Soaring commodity prices at mercy of demand – from speculators.” Globe and Mail.
2011-03 A rally in commodity prices resurrected inflationary threats (Pesenti and Groen 2011-03).
2011-01-12 American International Group, which received a massive bailout in 2008, claimed it expected to complete a recapitalization that would allow it to fully pay back the government (more).
2011-02 Coffee prices: In New York, the benchmark May futures contract hit $2.784 a pound, their highest level since $3.40 in 1977, an all-time record. During the past 12 months alone, those prices rose by 145%. Last week the International Coffee Organisation said the price had hit a 14-year high. By July 2011 “Coffee futures are up 53% over the past year, although the front-month contract for July delivery fell 1.9%, or 4.8 cents, in Friday to close at $2.5255 a pound.”
2011-06-01 Investors should prepare for renewed swings in prices of commodities (oil, natural gas, orange juice) “swings expected after weather forecasters predicted a busy Atlantic hurricane season.” Blais 2011-06-01 .” Financial Times. London.
2010-12 From 1977-2010 the compound annual sharehold value continues to decrease compared to pre-shareholder-value era (1933-1977) (Martin 2011 cited in Huffington Post).” Companies tend to boost earnings per share without creating value but gross-margin return on inventory investment drives longer term value creation. CEOs need to be held accountable for long-term performance by linking compensation to such metrics as multiyear stock performance. see Lek.
2010-09 Investment banker multimillionaire 59-year-old American Bob Diamond was appointed as head of Barclays megabank raising concerns that the Treasury should separate traditional retail banking from casino banking. Casino banking can lead to potential massive profits or loss depending on the level of risk of investments. Vince Cable: “Diamond, with his £20m bonuses, is the unacceptable face of this bonus-driven banking,” Oakeshott said. “This highlights the need to break-up and de-risk the British banking system.” Barclays appointment highlights ‘casino’ banking fears Business secretary says Barclays’ appointment of Bob Diamond illustrates dangers of having retail banks with massively profitable investment arms attached to them.
2010—08-16 The CFTC sanctioned ConAgra Trade Group, Inc. (CTG) $12 Million for causing a non-bona fide price to be reported in the NYMEX Crude Oil futures contract. On January 2, 2008, CTG was the first to purchase NYMEX crude oil futures contracts at the then-historic price of $100. As a result of CTG’s effort to be the first to trade at the $100 level, CTG caused a non-bona fide price to be reported, according to the CFTC order. (CFTC Press Release 5873-10, August 16, 2010) (more).
2010-07-21 President Obama signed the Dodd-Frank financial regulatory bill. “Title VII of the Dodd-Frank Act amends the Commodity Exchange Act to establish a comprehensive new regulatory framework for swaps and security-based swaps. The legislation is enacted to reduce risk, increase transparency, and promote market integrity within the financial system by, among other things: 1) providing for the registration and comprehensive regulation of swap dealers and major swap participants; 2) imposing clearing and trade execution requirements on standardized derivative products; 3) creating robust recordkeeping and real-time reporting regimes; and 4) enhancing the Commission’s rulemaking and enforcement authorities with respect to, among others, all registered entities and intermediaries subject to the Commission’s oversight. On the same day, the CFTC releases a list of 30 areas of rulemaking to implement the Dodd-Frank Act. (CFTC Press Releases 5855-10 and 5856-10, July 21, 2010) (more). The Dodd-Frank Act included the Volcker Rule which requires that “regulators implement regulations for banks, their affiliates and holding companies, to prohibit proprietary trading, investment in and sponsorship of hedge funds and private equity funds, and to limit relationships with hedge funds and private equity funds. Non-bank financial institutions supervised by the Fed also have restrictions on proprietary trading and hedge fund and private equity investments. The Council will study and make recommendations on implementation to aid regulators (more).”
2010-05-24 A YouTube video of High Frequency Trading explained by William Arnuk, the 13-year-old son of Sal Arnuk, who works for the HFT research firm, Themis Trading.
2010-05 With the flow from BP’s Deepwater Horizon huge oil spill unstaunched both stock and oil markets crashed with the brunt of the losses in the energy sector. Oil prices fell. (Dicker 2011:305).
2010—05-06 Major stock indexes and stock index futures experience a “flash crash”, a brief but severe drop in prices, falling more than 5% in a matter of minutes, only to recover a short time later. Dow Jones industrials fell roughly 900 points, only to quickly recover. Some individual securities experience more volatility than the stock indexes. (Statement by SEC and CFTC, May 6, 2010). (more) The joint CFTC/SEC report on the “flash crash” of May 6, 2010, examined the role of high-frequency trading in this extreme episode (U. S. Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission, 2010). Whether or not a single large order caused the “flash crash” in May 2010, as the Securities and Exchange Commission has alleged that a single large order may have caused the crash and has placed pressure on brokers to make sure they don’t toss any oversize or out-of-control orders into the market (Traders Magazine). “The regulators’ official October report on the 15-minute plummet in the Dow Jones Industrial Average on May 6, 2010, blamed a liquidity crisis that followed a bad trade in S&P 500 futures. Officials have since taken action to prevent a similar catastrophe by instituting circuit breakers that halt individual stocks in the S&P 500 after a 10 percent move (Melloy 2011-07-07).”
2010—04-06 It took $20 trillion of public funds over a period of two-and-a-half years to lift the total world market capitalization of listed companies by $16.4 trillion. This means some $3.6 trillion, or 17.5%, had been burned up by transmission friction. Government intervention failed to produce a dollar-for-dollar break-even impact on battered markets, let alone generate any multiplier effect, which in normal times could be expected to be between nine and 11 times. In the meantime, with the exception of China’s, the real global economy continues to slide downward, with rising unemployment and underemployment. The massive government injection of new money managed to stabilize world equity markets by January 2010, but only at 73.5% of its peak value in October 2007. It still left the credit markets around the world dangerously anemic and the real economy operating on intensive care and life support measures from government. This is because the bailout and stimulus money failed to land on the demand side of the economy, which has been plagued by overcapacity fueled by inadequate workers’ income, masked by excessive debt, and by a drastic reversal of the wealtheffect on consumer demand from the bursting of the debt bubble. The bursting of the debt bubble destroyed the wealth it buoyed, but it left the debt that fueled the bubble standing as liability in the economy. Much of the new government money came from adding to the national debt, which taxpayers will have to pay back in future years. This money went to bail out distressed banks and financialinstitutions, which used it to profit from global “carry trade” speculation, as hot money that exploited interest rate arbitrage trades between economies. The toxic debts have remained in the global economy at face value, having only been transformed from private debts to public debts to prevent total collapse of the private sector. The debt bubble has been turned into a dense debt black hole of intense financial gravity the traps all light from appearing at the end of the recovery tunnel.(Lui, Henry C.K. 2010—04-06. “Bailouts, Stimulus Packages and Jobless Recovery: The Crisis of Wealth Destruction. Part I).”
2010-04-20 BP’s Deepwater Horizon rig caught fire resulted in oil spill.
2010-03 Michael Lewis published his book entitled The Big Short in which he returned “to his financial roots to excavate the crisis of 2007–2008, employing his trademark technique of casting a microcosmic lens on the personal histories of several Wall Street outsiders who were betting against the grain—to shed light on the macrocosmic tale of greed and fear.” “Lewis is a capable guide into the world of CDOs, subprime mortgages, head-in-the-sand investments, inflated egos–and the big short.” Lewis provides “a savvy assessment of the wisdom of the financial bailout and where-are-they-now updates on the book’s various heroes and villains.” (more)
2010—01-14 The “CFTC votes at an open meeting to publish in the Federal Register a proposal to set position limits for futures and option contracts in the major energy markets. (CFTC Press Release 5771-10, January 7, 2010) (more).”
2010-01 Organizations “representing the electric and natural gas industries and serving nearly all energy customers in the United States, support the goals of the Administration and Congress to improve transparency and reduce systemic risk in over-the-counter (OTC) derivatives markets. As the Senate considers financial reform legislation, [they argued] that it preserve the ability of companies to access critical OTC energy derivatives products and markets. engaged in off-market trading for oil which is unregulated. Estimates for the OTC derivative market for all assets range upward of $600 trillion. See (Edison Electric Institute (EEI). 2010-01. “OTC Derivatives Reform: Energy Sector Impacts.”).
2009-12-17 “Automated market makers (AMM) co-locate their servers in the NASDAQ or the NYSE building, right next to the exchanges’ servers. AMMs already have faster servers than most institutional and retail investors. But because they are co-located, their servers
can react even faster.” “According to Traders Magazine the number of firms that co-locate at NASDAQ has doubled over the last year (Arnuk, Sal L.; Saluzzi, Joseph. 2009-12-17. “Toxic Equity Trading Order Flow on Wall Street: The Real Force Behind the Explosion in Volume and Volatility.” A Themis Trading LLC White Paper.)
2009-10-08 “High Frequency Trading Technology: a TABB Anthology.” TABB reported that software capable of electronic routing and execution based on algorithms account for more than 25% of all shares traded by the buy side today. A relatively few high frequency proprietary trading firms experienced a meteoric rise and now wield far greater influence on the markets today than most people recognize.
2009-10-30 Market analysts argued that oil markets were no longer tied to supply and demand fundamentals. They were concerned with the extremely high correlation between crude oil prices and US currency (“Flood 2009-10-30).
2009-08-06 Computer-based algorithmic programs carry out transactions in 400 microseconds which is 1000 times faster than the human eye. Few ordinary investors are aware of or have access to this frenetic, technology-driven world of high-frequency trading which accounted for 50% of daily volume in US stocks, up from estimates of 30 per cent in 2005 (Mackenzie, Michael; Grant, Jeremy. 2009-08-06. “The dash to flash.” Financial Times.)
2009-07-20. Goldman Sachs and UBS filed charges against former employees they allege stole proprietary computer code key to their high-speed trading programs, now the most tactical and strategic weapons on Wall Street (Heires, Katherine. 2009-07-20Code Green: Goldman Sachs & UBS Cases Heighten Need to Keep Valuable Digital Assets From Walking Out The Door. Millions in Trading Profits May Depend On It Securities Industry News).”
2009-03 UBS filed papers “charging three ex-employees with “misappropriation of trade secrets,” specifically the misappropriation of 25,000 lines of source code for the firm’s high-speed, algorithmic trading programs (Heires, Katherine. 2009-07-20Code Green: Goldman Sachs & UBS Cases Heighten Need to Keep Valuable Digital Assets From Walking Out The Door. Millions in Trading Profits May Depend On It Securities Industry News).”
2009-07-03. Goldman Sachs brought charges “against a former vice president for equity strategy and computer programmer on July 3 for allegedly copying 32 megabytes of the bank’s trading codes and uploading them to an encrypted server before sending them to a home computer and other
devices (Heires, Katherine. 2009-07-20Code Green: Goldman Sachs & UBS Cases Heighten Need to Keep Valuable Digital Assets From Walking Out The Door. Millions in Trading Profits May Depend On It Securities Industry News).”
2009-06 Signs of an approaching global economic recovery re-emerged (Pesenti and Groen 2011-03).
2009-06-28 Evans-Pritchard, Ambrose. “China’s banks are an accident waiting to happen to every one of us.
Fitch Ratings warned that China’s banks have lent up to $1,000bn (£600bn) since December 2008. “Money is leaking instead into Shanghai’s stock casino, or being used to keep bankrupt builders on life support.” This does not help the world economy.
2009-06-26 “The Iraq War and other events which helped set off an increase in the price of oil had a further depressing effect on countries which import energy, including the U.S. The magnitude of the increase in energy prices was exacerbated by financial speculation. This change in the price of energy, accompanied by governments’ attempts to develop alternative bio energy sources contributed to higher food prices. The sharp increase in energy prices thus directly and indirectly brought further reductions in purchasing power within many countries. The transfer of income from those who suffered from these price increases to those who benefited weakened global aggregate demand and contributed to the global imbalances which played an important role in the crisis (Stiglitz Commission 2009).”
2009-05 During “an annual conference of the Securities Industry and Financial Markets Association, top executives from Direct Edge and the NYSE angrily debated the merits of flash orders. Flash orders are a type of high frequency trading. Institutional paying participants get a flash peek at prices before they are released to the broader, public market (more).”
2009-03-24 The Federal Reserve, working closely with the Treasury, made the decision to lend to AIG on September 16, 2008. It was an extraordinary time. Global financial markets were experiencing unprecedented strains and a worldwide loss of confidence. Fannie Mae and Freddie Mac had been placed into conservatorship only two weeks earlier, and Lehman Brothers had filed for bankruptcy the day before. We were very concerned about a number of other major firms that were under intense stress. AIG’s financial condition had been deteriorating for some time, caused by actual and expected losses on subprime mortgage-backed securities and on credit default swaps that AIG’s Financial Products unit, AIG-FP, had written on mortgage-related securities. As confidence in the firm declined, and with efforts to find a private-sector solution unsuccessful, AIG faced severe liquidity pressures that threatened to force it imminently into bankruptcy (more). Claims of bondholders and counterparties were paid at 100 cents on the dollar by taxpayers, without giving taxpayers the rights to the future profits of these institutions. Benefits went to the banks while the taxpayers suffered the costs (more).
2009-02-03 The “U.S. government announced a restructuring of a bailout plan for the troubled insurer American International Group Inc. Monday, extending $30 billion in additional aid to the company. News of the additional funds came as AIG, once the world’s largest insurer, said it lost $61.7 billion in the fourth quarter, the biggest quarterly loss in U.S. corporate history, amid continued financial market turmoil.”
2008-10-18 The President of the United Nations General Assembly, “Miguel D’Escoto Brockmann, announced his intention to establish a taskforce of experts to review the workings of the global financial system, including major bodies such as the World Bank and the IMF, and to suggest steps to be taken by Member States to secure a more sustainable and just global economic order (http://www.un.org).” Noted economist and Kerala State Planning Board Vice-Chairman Prabhat Patnaik was included in a four-member high-power task force of the United Nations (U.N.) to recommend reforms of the global financial system. The task force Commission of Experts on Reforms of the International Monetary and Financial System (2009), informally known as the Stiglitz Commission, was headed by Nobel Prize-winning economist Joseph Stiglitz.
2008 Morgan Stanley and Goldman Sachs, the last two investment banks left standing, announced they would become traditional bank holding companies, marking the end of an era for Wall Street (more).
2008-09-16 American International Group, Inc. (AIG) (NYSE: AIG), an American insurance corporation, suffered a liquidity crisis following the downgrade of its credit rating. “The Federal Reserve, working closely with the Treasury, made the decision to lend to AIG on September 16, 2008. It was an extraordinary time. Global financial markets were experiencing unprecedented strains and a worldwide loss of confidence. Fannie Mae and Freddie Mac had been placed into conservatorship only two weeks earlier, and Lehman Brothers had filed for bankruptcy the day before. We were very concerned about a number of other major firms that were under intense stress. AIG’s financial condition had been deteriorating for some time, caused by actual and expected losses on subprime mortgage-backed securities and on credit default swaps that AIG’s Financial Products unit, AIG-FP, had written on mortgage-related securities. As confidence in the firm declined, and with efforts to find a private-sector solution unsuccessful, AIG faced severe liquidity pressures that threatened to force it imminently into bankruptcy (more).”
2008-07 2008 Lehman Brothers failed. Bubble popped and money fled from oil investment. Trading value of oil dropped by 80% (Dicker 2011).
2008 Oil reached $147 a barrel (Dicker 2011).
2008-06 Federal Reserve Chairman Bernanke “singled out the role of commodity prices among the main drivers of price dynamics, underscoring the importance for policy of both forecasting commodity price changes and understanding the factors that drive those changes (Pesenti and Groen 2011-03 citing Bernanke).”
2008-04 The macroeconomic outlook changed rapidly and dramatically as the global economy experienced the near-collapse of trade volumes and the associated plunge in commodity prices was the harbinger of pervasive disinflation risks (Pesenti and Groen 2011-03).
2008 In the ten years after Born’ s 1998 proposal, the market in derivatives exploded from $27 trillion to one worth more than $ 600 trillion. By comparison, the entire U.S. economy was worth $ 14 trillion. Hirsch, Michael. 2010. Capital Offense: How Washington’s Wise Men Turned America’s Future Over to Wall Street. New Jersey: John Wiley.
2008-06 “NYSE Floor Brokers Get New Tools.” The New York Stock Exchange introduced two new technologies to give brokers on the NYSE trading floor the ability to trade algorithmically and to strengthen the brokers’ ability to locate large sources of liquidity. more
2008-06-17 Ross Levin, a Wall Street NYC hedge fund analyst with Arbiter Partners, who calls himself a “passive speculator in securities” met Lionel Lepine, a member of the Athabaskan Chipewyan First Nation whose family and friends living on the contaminated watershed upriver from the oil sands’ effluence are suffering from unprecedented numbers of cancerous tumours. Levin attended Calgary’s prominent energy investment forum and “found himself in the eye of a growing environmental storm battering Alberta’s oilsands — one of several clashes centred on the energy sector.”
read more | digg story
2008-04-02 – After two decades spent expanding in Britain, the United States and other developed economies, the world’s third biggest bank is shifting its ….. or if the government forces banks to separate their retail arms from investment banking, dubbed “casino banking” by some politicians. .
2008 PM Harper apologized for past treatment of Canada’s First Nations.
2008 Pollution of the Athabaskan River north of the oil sands
2008 Impatient development of nonrenewable resources in the oil sands.
2008-03-24 Reich, Robert B. 2008-03-24. Is the Game About to Stop? American consumers’ buying power was less than the goods and services the U.S. economy is capable of producing. Reich predicted fewer jobs, even less consumption which would lead to even fewer jobs and possible a recession which could become a full-fledged depression. Reich argued that fiscal and monetary policies could perhaps make up for consumers’ lack of buying power. American consumers were already deep in debt, their homes were losing value, their paychecks were shrinking.
2008 Meteoric rise of oil commodities market directly caused by irresponsible speculators playing with volatile, unpredictable hedge funds that play havoc with the market making a fortune for some while destroying economic, social and ecological environments all around them.
2008 Calgary has a high percentage of young millionaires with lots of disposable income. There are also c.4000 homeless people in Calgary, the oil capital of Canada. c. 40% of the homeless are working poor who are unable to afford housing.
2007-10-31 Meredith Whitney, an obscure analyst of financial firms for Oppenheimer Securities “predicted that Citigroup had so mismanaged its affairs that it would need to slash its dividend or go bust. It’s never entirely clear on any given day what causes what in the stock market, but it was pretty obvious that on October 31, Meredith Whitney caused the market in financial stocks to crash. By the end of the trading day, a woman whom basically no one had ever heard of had shaved $369 billion off the value of financial firms in the market. Four days later, Citigroup’s C.E.O., Chuck Prince, resigned. In January, Citigroup slashed its dividend (Lewis, Michael. 2008. The End).”
2007-08 Arnuk and Saluzzi argued in their white paper entitled Toxic Equity Trading Order Flow on Wall Street: The Real Force Behind the Explosion in Volume and Volatility” (2009-12-17) that electronic trading, the new for-profit exchanges and ECNs, the NYSE Hybrid and the SEC’s Regulation NMS all came together in unexpected ways in the late summer of 2007. This perfect storm caused the Volatility Index, [stock market volatility index (VIX) "fear gauge" measures the expectation of price movement over the next 30 days. The higher the reading, the more likely stocks are to move in one direction or another] to climb, trading volumes to increase explosively, stock prices and indexes to experience rapid change. “
This has resulted in the proliferation of a new generation of very profitable, high-speed, computerized trading firms and methods that are causing retail and institutional investors to chase artificial prices (Arnuk and Saluzzi 2009-12-17).”
2006-03-07 The merger of NYSE and Archipelago was completed forming the NYSE Group, Inc., a holding company that operates two securities exchanges: the NYSE and NYSE Arca, Inc. They are a leading provider of securities listing, trading and market data products and services (more).
2007-06-18 Wolf, Martin. 2007-06-18. “Unfettered finance is fast reshaping the global economy.” “In Rome everything is for sale.”
2007-01 “Both the switch to trading in penny increments in January 2007 and stepped-up activity by high-frequency traders have cut into dealer profits. That has made the dealers less willing to shoulder the entire burden of supporting the exchanges. Almost 90 percent of industry volume is now being traded in options subject to the “penny pilot.” With the minimum trading increment down from 5 cents to 1 cent in the most active options, competition has cut dealer spreads dramatically. “Options Market Makers Catch a Break on Fees as Customers Pick Up.” Traders Magazine
2006 “[F]lash orders – a key focus of the New York Times article, which prompted an almost instant response from politicians and regulators. Flash orders first appeared in US equity markets in 2006, with the launch of the Enhanced Liquidity Provider (ELP) programme by Direct Edge. The idea was that if an order had been sent into Direct Edge and not found a match, it would be shown to other market participants before being routed out to alternative markets, as would normally happen. In theory, more of the orders placed with Direct Edge would be filled, and more customers would have a shot at trading at the price they want (Wood, Duncan. 2009-09-04) “Murky business.” Risk magazine.” tags: Algorithmic Trading Topics: Equities, Trading
2006-2008 Mainly cautious elderly customers were ill-advised by Barclays between 2006 and 2008 to put money into high-risk investments Aviva Global Balanced Income or the Aviva Global Cautious Income funds. No one at Barclays lost jobs even though this scandal cost Barclays shareholders close to £80 million and inflicted untold damage on Barclays’ reputation. Read more
2005-12-15 NYSE Hybrid Market was launched, creating a unique blend of floor-based auction and electronic trading. NYSE Hybrid Market claimed to provide customers with more choices and greater flexibility in accessing the superior liquidity and best prices of the NYSE marketplace. In 2005, the combined dollar value of transaction volumes of the NYSE and NYSE Arca represented approximately $17.8 trillion dollars, which was greater than the value of trading of Nasdaq ($10.1 trillion), the London Stock Exchange ($5.7 trillion), the Tokyo Stock Exchange ($4.4 trillion), Euronext ($2.9 trillion) and the Deutsche Börse ($1.9 trillion) (more)
2005-06-29 70 FR 37496, 37627 Rule 603 — Distribution, Consolidation, and Display of Information with Respect to Quotations for and Transactions in NMS Stocks. “In Regulation Fair Disclosure, the SEC took the stand that firms cannot release fundamental information to a subset of investors before others. On the other hand, Rule 603(a) established a different approach to market data, whereby market centers could sell data directly to subscribers, in effect creating a tiered system of investors with respect to access to information about market events. Rule 603(a) prohibits an SRO or a broker-dealer from supplying the data via direct feeds faster than it supplies it to the Securities Industry Automation Corporation (SIAC) that processes the data and distributes the “tape.” However, the operation of processing and retransmitting data via SIAC appears to add 5 to 10 millisecond and hence subscribers to direct exchange data feeds “see” the information before others who observe the tape (more).”
2005-07-31 CEO, John Thain discussed NYSE plans to merge its floor-based trading system with a relatively new electronic market known as Archipelago creating a hybrid system that allows electronic, instantaneous and anonymous trades. Thain’s former employer, Goldman Sachs, was on both sides of the deal representing the NYSE and Archipelago. Goldman was the biggest NYSE seat holder, owned a specialist firm and 15% of Archipelago “NYSE chief: Hybrid trading system’s the way to go.”
2005Many banks operated proprietary trading units that were organized much like hedge funds. Risk exposures of the hedge-fund industry began to have a material impact on the banking sector, resulting in new sources of systemic risks (more).
2005 High-frequency trading accounted for 30% of daily volume in US stocks (Mackenzie, Michael; Grant, Jeremy. 2009-08-06. “The dash to flash.” Financial Times.)
2005 Direct Edge, a small, electronic trading company opened for business using high-frequency trading (lightning-fast computers equipped with sophisticated and powerful algorithms that are capable of executing trading strategies) and flash orders (literally flashing their orders to their own investors for about a tenth of a second before releasing it to the public market).
2005-07 S&P upgraded China’s sovereign rating by one notch to A-minus, citing China’s aggressive overhaul of its financial sector and improved profitability. China is rated ‘A2′ by Moody’s Investors Service and ‘A’ by Fitch Ratings. Liu, Henry C. K. World Trade Needs a Global Cartel for Labor (OLEC).
2005 According to one study, if the share of world trade and world gross domestic product for non-industrial countries had remained at its 2000 levels, then by 2005, real oil prices would have been 40 percent lower, and real metals prices 10 percent lower, than they actually were (Pain, Koske, and Sollie, 2006). Since 2005, continued strong growth in the demands for resources of emerging market economies have likely put further considerable upward pressure on commodity prices (Bernanke 2008-06-09). “
2004 The “demand for oil by members of the Organisation for Economic Co-Operation and Development (OECD) has been essentially flat since 2004 (Bernanke 2008-06-09). ”
2004-08-02 Revolutionary electronic trading practices transformed the stock market. The NYSE filed to expand using the NYSE Direct+® system. NYSE Direct+® eliminated limits on the size, timing, and types of orders that can be submitted via Direct+, significantly increasing the level of purely electronic trading at the NYSE.
2004 The “demand for oil by members of the Organisation for Economic Co-Operation and Development (OECD) has been essentially flat since 2004 (Bernanke 2008-06-09). “
2003 The price of oil had remained relatively stable from 1990 to 2003 when the price of oil became volatile. The price increased sixfold in five years then lost 80% of its value in 6 months (Dicker 2011:viii).
2001 There was “an overnight change in the trading patterns of the Nasdaq 100 Index which highlighted the competitive impacts of the SEC reforms and foreshadowed the dominance of the high frequency traders and all-electronic marketplaces. At the time, the ETF for the Nasdaq 100 Index (then known as the QQQ) was the most actively traded security and was primarily traded on the American Stock Exchange which utilized a manual floor-based specialist system. Using ATSs, the high frequency traders began using their efficient automated trading systems to narrow the quoted spreads in the QQQ from several pennies down to tenths of a penny, saving investors millions in the process (Traders) .”
Within months, investors voted with their feet and made the electronic markets that featured the liquidity and narrower spreads of the high frequency traders the dominant venues for the QQQ. Investors never looked back. Ultimately, the NYSE and the Nasdaq Stock Market were compelled to purchase these electronic markets that catered to high frequency traders (Archipelago was purchased by the NYSE and INET by the Nasdaq Stock Market). The traditional, uncompetitive Wall Street market maker model was replaced and the exchanges were transformed to open, fair and transparent electronic marketplaces.
2000 More than 90 foreign futures exchanges emerged with the ever-increasing demand for new financial instruments “to hedge against fluctuating interest rates, changing foreign exchange rates and institutional securities portfolios (Bernstein 2000:46).
2000 The Chicago Mercantile Exchange (CME) trades futures in livestock futures, currency futures, interest rate futures, stock index futures (Bernstein 2000:70).
1999 The most actively traded future contracts were interest rates, futures, stock index futures, energy futures, currency futures and agricultural futures (Bernstein 2000:72).
1998 Long Term Capital Management collapsed.
1998Security and Exchange Commission ruling allowed electronic communication networks (ECN’s for short) to trade equities in competition with the traditional exchanges. New technologies made the automation possible resulting in the development of high frequency trading: Lightening-quick computers, aided by powerful algorithms, buy and sell stocks based on price or other markers (more).
1998 Brooksley Born, chairman of the Commodity Futures Trading Commission declared that the unregulated regulation of private derivative contracts could “pose grave dangers to our economy.” He argued forcefully for regulation of private derivative contracts but lost to Alan Greenspan and Robert Rubin who were against policing the deals.
1990 The price of crude oil rose dramatically when Hussein invaded Kuwait.
1986 The total volume of futures contracts trading was 184 million and the T bonds were among the most actively traded future contracts (Bernstein 2000:71).
1989 Michael Lewis’ novel entitled Liar’s Poker was published. He intended to write a period piece about the 1980s in America. He had expected readers to be outraged that in 1986, the C.E.O. of Salomon Brothers, John Gutfreund, was paid $3.1 million. He expected readers to be horrified that one of the traders, Howie Rubin, had moved to Merrill Lynch, where he lost $250 million. He expected readers to be shocked to learn that a Wall Street C.E.O. had only the vaguest idea of the risks his traders were running.” Writing in 2008 he expressed dismay that Wall Street continued for another 20 years and the public were more in awe than angry. Read more: http://www.portfolio.com/news-markets/national-news/portfolio/2008/11/11/The-End-of-Wall-Streets-Boom#ixzz1Qd1u5MLZ
1987 The World Commission on Environment and Sustainable Development (Brundtland Commission) defined sustainable development as meeting the needs of the present without compromising the ability of future generations to meet their own needs.
1987-10-19 “The Dow Jones Industrial Average tumbled more than 20%, and the swoon extended into the following day, before a rebound. Floor traders, working by telephone, dominated the action and computer-generated trading was still in its infancy. Dark pools and high-frequency trading were the stuff of science fiction. Trading reached 600 million shares, according to the SEC (source).”
1982 Futures trading in the US was self-regulating and anyone in the business had to become a member of the National Futures Association (NFA).
1970s The Bretton Woods system broke down in the early 1970s. This was followed by a period of financial market liberalization and deregulation, by a surge of private capital flows and by the increasingly global reach of financial institutions.
1974 The US Congress passed the Commodity Futures Trading Commission Act and established Commodity Futures Trading Commission (CFTC) to protect participants in the futures market from fraud, deceit and abusive practices such as unfair trading practices (price manipulation, prearranged trading, trading ahead of a customer), credit and financial risks, and sales practice abuses (Bernstein 2000:32). Individual nation states have similar regulating bodies.
1973/4 The International Energy Agency (IEA) was founded as an autonomous organisation to ensure reliable, affordable and clean energy for its 28 member countries and beyond. The IEA’s initial role was to help countries co-ordinate a collective response to major disruptions in oil supply through the release of emergency oil stocks to the markets. The Executive Director in 2011 is Nobuo Tanaka “Total oil stocks in IEA member countries amount to over 4.1 billion barrels, and nearly 1.6 billion barrels of this are public stocks held exclusively for emergency purposes. IEA net oil-importing countries have a legal obligation to hold emergency oil reserves equivalent to at least 90 days of net oil imports. These countries are holding stock levels well above this minimum amount, currently at 146 days of net imports (http://www.iea.org)”
1972 The total volume of futures contracts trading was 18 million and the top ten most actively traded future contracts were agricultural futures (Bernstein 2000:71).
1970s There was increasing volatility in international currency exchange rates as the Bretton Woods agreement began to break down. Business people transferred risk of volatility in international markets by hedging with speculators willing to take the risk. Futures markets began to expand into foreign currencies as fluctuated wildly competing against each other and the US dollar.
1960s Futures trading, also known as commodities trading, the final frontier of capitalism, became a popular speculative and investment vehicle in the US in the 1960s (Bernstein 2000:1).
1960s Futures trading, also known as commodities trading, the final frontier of capitalism, became a popular speculative and investment vehicle in the US in the 1960s (Bernstein 2000:1). These financial instruments offer unlimited profit potential with relatively little capital. Speculators are drawn to the possibility of quick money or what I like to call impatient money. The great wealth accumulated from speculative financial instruments has spawned careers in brokerage, market analysis, computerized trading, computer software and hardware, accounting, law, advertising which themselves subdivide into more recent opportunities such as those related to risk-management.
1929-30 “As mass production has to be accompanied by mass consumption, mass consumption, in turn, implies a distribution of wealth — not of existing wealth, but of wealth as it is currently produced — to provide men with buying power equal to the amount of goods and services offered by the nation’s economic machinery. Instead of achieving that kind of distribution, a giant suction pump had by 1929-30 drawn into a few hands an increasing portion of currently produced wealth. This served them as capital accumulations. But by taking purchasing power out of the hands of mass consumers, the savers denied to themselves the kind of effective demand for their products that would justify a reinvestment of their capital accumulations in new plants. In consequence, as in a poker game where the chips were concentrated in fewer and fewer hands, the other fellows could stay in the game only by borrowing. When their credit ran out, the game stopped.” Eccles, Marriner S. 1951. Beckoning frontiers: Public and personal recollections Ed. Hyman, Sidney. Alfred A. Knopf.
1919 – 1945 The Chicago Mercantile Exchange (CME) traded futures in eggs, butter, apples, poultry and frozen eggs (Bernstein 2000:70).
1865 The Chicago Board of Trade (CBOT) organized trading of futures contracts.
1848 The Chicago Board of Trade (CBOT) was formed as a price risk occurred in the grain markets of Chicago. It was a cash market for grain. Forward or “to-arrive” contracts began trading at the CBOT almost immediately.
1710 The first modern organized futures exchange began with the Dojima Rice Exchange in Osaka, Japan.The Japanese feudal landowners began to use certificates of receipt against future rice crops. As these futures certificates became financial instruments in the general economy the value of the certificates would rise and fall as the price of rice fluctuated. The Dojima Rice Exchange emerged as the world’s first futures market where speculators traded contracts for the future delivery of rice or “certificates of receipt.” The Japanese government outlawed the practice when futures contracts (where delivery never took place) began to have no relationship to the underlying cash value of the commodity leading to wild and unpredictable fluctuations (Bernstein 2000:30).
Actors and Actants
Electronic Communication Network (ECN) “An electronic system that attempts to eliminate the role of a third party in the execution of orders entered by an exchange market maker or an over-the-counter market maker, and permits such orders to be entirely or partly executed.”
High-frequency trading firms (they self-identify as Automated Trading Professionals) use high-frequency techniques (software-based mechanisms: high frequency algorithmic trading) with real-time, co-located, high-frequency (sub-millisecond) trading platform—one (data collected then orders: created-routed-executed). Wall Street banks and hedge funds also use high-frequency techniques but new (ie emerged formed in c. 1999-2001) small (most have as few as 12 to 100 employees), independent firms account for most high-frequency trading, handling 60 % of the 7 B shares that change hands daily on US stock markets on Wall Street and hedge funds. These high-frequency trading firms have formed a trade group called Principal Traders Group in an effort to hold off regulators who want to curb their activities. The members of the FIA Principal Traders Group is the industry’s response to the Joint CFTC-SEC Advisory Committee examination of the market structure and policy issues arising from the extraordinary market turmoil that occurred on May 6, 2010. See (Bowley, Graham. 2011-07-18. “ Split-second traders aim to polish image.” New York Times.) High-frequency trading firms using high-frequency techniques (software-based mechanisms: high frequency algorithmic trading) earned $12.9 billion in profit in the last two years (2009-2011), according to TABB Group, a specialist on the markets. TABB Group content focused on the business and technology issues facing US equity and options trading.
RGM Advisors, is a high-frequency trading firm in Austin, Texas. RGM CEO Richard Gorelick, is leading his company to seek a higher public profile.
Low latency Algorithmic Trading is used to process market updates and turn around orders within milliseconds. Low latency trading refers to the network connections used by financial institutions to connect to stock exchanges and Electronic communication networks (ECNs) to execute financial transactions. With the spread of computerized trading, electronic trading now makes up 60% to 70% of the daily volume on the NYSE and algorithmic trading close to 35%. Trading using computers has developed to the point where millisecond improvements in network speeds offer a competitive advantage for financial institutions. (Low latency is also being discussed in the advertising community, as a form of advertising that responds rapidly to consumer inputs, often from tweets.)
International Energy Agency (IEA) The International Energy Agency (IEA) is an autonomous organisation which works to ensure reliable, affordable and clean energy for its 28 member countries and beyond. Founded in response to the 1973/4 oil crisis, the IEA’s initial role was to help countries co-ordinate a collective response to major disruptions in oil supply through the release of emergency oil stocks to the markets. It is at the heart of global dialogue on energy, providing authoritative and unbiased research, statistics, analysis and recommendations. The IEA is committed to keeping the oil supplies well-stocked. The Executive Director in 2011 is Nobuo Tanaka “Total oil stocks in IEA member countries amount to over 4.1 billion barrels, and nearly 1.6 billion barrels of this are public stocks held exclusively for emergency purposes. IEA net oil-importing countries have a legal obligation to hold emergency oil reserves equivalent to at least 90 days of net oil imports. These countries are holding stock levels well above this minimum amount, currently at 146 days of net imports (http://www.iea.org)”
Henry C.K. Liu “is an independent commentator on culture, economics and politics. Born in Hong Kong and educated at Harvard University in architecture and urban design, Liu developed an interest in economics and international relations while pursuing interdisciplinary work on urban and regional development as a professor at UCLA, Harvard and Columbia universities. He was a planning/ development advisor to the late Winthrop Rockefeller, governor of Arkansas, and has received a national urban design award. Liu is currently the chairperson of a New York-based private investment group, a contributor to Asia Times Online and a visiting professor of global development at the University of Missouri at Kansas City. He is an occasional advisor on economic policy to several governments of emerging economies. Liu coined the term “dollar hegemony” to explain that the dollar, a fiat currency since 1971 and the major reserve currency internationally, distorts global trade and finance. Liu is a critic of central banking. He also calls for the use of sovereign credit in lieu of foreign capital for financing domestic development in developing countries. Liu has also been vocal in his critique of Chinese economic policy, which he argues includes imbalances that result in severe income disparity and environmental neglect. In a series of articles in Asia Times Online, Liu proposed the establishment of the Organization of Labor-Intensive Exporting Countries (OLEC), an international cartel, to restore the balance of market power between capital and labor in the globalized economy. He blogs at henryckliu.com. Huffington Post.”
OTC Over-the-counter derivatives markets engage in off-market trading for oil which is unregulated. Estimates for the OTC derivative market for all assets range upward of $600 trillion. See (Edison Electric Institute (EEI). 2010-01. “OTC Derivatives Reform: Energy Sector Impacts. p. 1.”). “Use of Financial Derivatives: A typical, large independent oil & natural gas exploration and production company regularly deals with volatility in oil & natural gas exploration. Such companies regularly make extensive use of financial derivatives with the discrete purpose of ensuring a stable cash flow from which they can consistently fund their capital program to find and bring much needed energy resources to market. Although they may make use of exchange-traded instruments, many of their financial transactions are concluded overthe-counter (OTC) under bilateral credit agreements. These frequently use the OTC markets for efficiency and economic reasons and allows the companies to: 1) customize the instrument specifically to operations;
2) reduce the need for cash by permitting more flexibility in the types of collateral leading to a more efficient use of capital and greater liquidity; 3) provide credit exposure diversification; and 4) have the ability to modify credit arrangements depending on a variety of factors during the term of a trade (more).”
Universal Banking Model – Investment and retail banking in one organisation. There is widespread concern that casino banking endangers security of traditional retail banking.
Webliography and Bibliography
Bernstein, Jake. 2000. How the Futures Markets Work. New York Institute of Finance.
Although it is quite old for the fast-paced risk management industry, there are certain basics that ring true. He briefly traced the history futures contracts leading to the volatile environment where agricultural futures were replaced by the less predictable currency markets. Of course, his book was written long before the meteoric rise of private equity funds. My concern remains with the absent ethical component on trading floors. Ethical responsibilities are as elastic as the regulations that govern the centuries old practice of hedging. In the period of late capitalism and the emergence of risk society, the cost of destructive unintended byproducts have created havoc in ways that far exceed the commodities/service value. The road to profits and impatient money, is paved with casualties. Berstein’s facts of market life are telling. He encourages simple methods and systems which require few decisions and little mental conflict. Too much thought is not conducive to successful trading. Too much analysis costs lost opportunities. Keep systems simple. Control your emotions. Practice caring less so that you remain more objective. Don’t ask why. Knowing why may hinder you more than it will help you. Patterns are the best indicators available (What feeds into a “pattern” however is not a science). Timing is what makes money in the futures market (Bernstein 2000:282-3). In other words, futures’ gurus encourage young hedge fund analysts to not think too much about factors such as displacement of peoples, the degradation of living conditions and the way in which they unwittingly contribute to making vulnerable ecologies and peoples even more vulnerable. Their gurus tell them to not think about the impact of their actions. They are told to not ask why the prices of essential commodities like fuel and food that they are playing with, are pushing certain groups into unimaginable levels of social exclusion. In the end groups at-risk to health degradation are always those least able to protect themselves. How convenient that the gurus do not factor in these social issues. They are entirely absent from finance reports. But then a lot of information is purposely not included in financial and business reports. Bernstein argues that the simpler systems that take fewer things into consideration will lead to more profits. Yet when he lists off all the potential factors in operation in even a simple fundamental analysis, it is not at all simple. It begins with the highly complex. The algorithms involved may appear to be simplified through the use of databases that seem to generate accurate, objective hard facts. In reality, the accuracy of any query depends on what was fed into it.
Bernanke, B. S. 2008. “Outstanding Issues in the Analysis of Inflation.” Speech at the Federal Reserve Bank of Boston. 53rd Annual Economic Conference. Chatham, MA.
Blais, Javier. 2011-06-01. Commodity swings expected after US storms forecast.” Financial Times. London.
Coyle, Diane. 2011. The Economics of Enough: How to Run the Economy as If the Future Matters. Princeton University Press.
nature of global capitalism, fiscal policy, inequality and the environment with reflection on civil society, economic growth ought not to be a policy goal, use of a greater range of economic indicators–she backs output growth as an objective, bond holders are safe; citizens are not; beyond traditional measures of debt in thinking about future obligations; top-rank economist’s view from the summit, challenge the neo-classical economic purist; economics and sustainability; serious and difficult changes made to economic systems’ structure and function; Herman Daly’s Steady-State Economics; long-run development; resource depletion, population growth, world poverty, rising debt, rates of innovation;
Cuthbertson, Richard. 2008-06-17. “Energy battles boiling over: A Wall Street analyst attending Calgary’s prominent energy investment forum found himself in the eye of a growing environmental storm battering Alberta’s oilsands — one of several clashes centred on the energy sector Monday.” Calgary Herald.
Eccles, Marriner S. 1951. Beckoning frontiers: Public and personal recollections Ed. Hyman, Sidney. Alfred A. Knopf.
Flood, Chris. 2009-10-30 “Markets: Oil dips after US GDP boost.” Financial Times.
Hirsch, Michael. 2010. Capital Offense: How Washington’s Wise Men Turned America’s Future Over to Wall Street. New Jersey: John Wiley.
Lewis, Michael. 1989. Liar’s Poker. W.W. Norton & Company.
Martin, Roger L. 2011-05. Fixing the Game: How Runaway Expectations Broke the Economy, and How to Get Back to Reality. Harvard Business School.
Orphanides, Athanasios, and John C. Williams (2007). “Robust Monetary Policy with Imperfect Knowledge,” Journal of Monetary Economics, vol. 54 (July), pp. 1406-35.
Pain, Nigel, Isabell Koske, and Marte Sollie (2006). “Globalisation and Inflation in the OECD Economies,” OECD Economics Department Working Paper Series 524. Paris: Organisation for Economic Co-operation and Development, November.
Pesenti, Paolo A. Groen, Jan J.J. 2011-03. Commodity prices, Commodity Currencies, and Global Economics. Directorate-General for Economic and Financial Affairs. European Commission. Economics Papers 440. Brussels. Commodity prices, forecasting, exchange rates, factor models, PLS regression
Powell, Barbara. 2011-06-28. “Gasoline Futures Gain as Crude, Equities Advance, Dollar Drops.” Bloomberg.
Rich, Robert W., and Charles Steindel (2007), “A Comparison of Measures of Core Inflation,” Federal Reserve Bank of New York, Economic Policy Review, vol. 13 (December).
Wallace, Lane. 2009-07-07. “The Uncommon Navigator: What Wall Street Should Learn from the NFL.” The Atlantic.
Filed in Business & Finance, economic efficiency, Economics, Economy & Finance, ethics, Power and everyday life, Public Policy, reflexivity, risk management, Risk Society, Social History Timeline, wealth disparities will intensify
Tags: Barclays, bonus-driven banking, boom and bust, casino banking, commodities, futures, hedge funds, hedging, High frequency trading, market fundamentals, soft commodities, speculation, supply and demand
WORK IN PROCESS UNDER CONSTRUCTION
|Attribution-ShareAlike CC BY-SAThis license lets others remix, tweak, and build upon your work even for commercial purposes, as long as they credit you and license their new creations under the identical terms. This license is often compared to “copyleft” free and open source software licenses. All new works based on yours will carry the same license, so any derivatives will also allow commercial use. This is the license used by Wikipedia, and is recommended for materials that would benefit from incorporating content from Wikipedia and similarly licensed projects. View License Deed View Legal Code|
The following dates and events are a collage of data from various researchers, journalists, etc. compiled in reverse chronological order by speechless as a personal research tool. At the last edit in June 2012 there may still be incomplete referencing. This is unintentional. Like all my posts it may at any time by updated and modified.
2012-08-20 “The Calgary Homeless Foundation’s last count was conducted Jan. 18, when it was –32 Celsius and at least 3,190 people were homeless — an 11.4 per cent decrease from the May 2008 count.” (Ferguson, Eva. 2012-08-20. “Homeless count in Calgary finds fuller shelters: Growing economy lures more job seekers to Calgary.” Calgary Herald.)
2011-06-09 One of the major reasons Canadian cities, including Calgary, are unable to implement sustainable solutions to affordable housing is the lack of money and power at the municipal level. In an article published in The Economist entitled “Canada’s cities Poor relations: Mayors need more money and more powers” there is a list of urban crises including growing ghettos of crime, poverty and drug addiction; soaring house prices, increasing homelessness, the middle class fleeing to the suburbs, deteriorating civic buildings, roads, bridges, sewage systems. Provincial governments have neglected their responsibility for such matters as social housing, welfare, mental illness, drug addiction and policing. “Canada’s big cities need at least C$238 billion to repair and expand infrastructure, according to the Federation of Canadian Municipalities. Municipalities get only eight cents out of every tax dollar. Their revenues come mainly from property taxes. Under constitutional arrangements that date back to the time when Canada was largely rural, mayors have fewer powers than their counterparts in some other developed countries.”
2011-06-06 In the statement released by Berry Vrbanovic, President of the Federation of Canadian Municipalities (FCM) on the 2011-06 Federal Budget Commitment to Develop a New Long-Term Infrastructure Plan for Cities and Communities, Vrbanovic applauded the federal Government for a budgetary commitment to a shift in the municipal-provincial-federal and private sector partnerships that will lead to “a reversal in the decline in our aging infrastructure, and also to keep police on the streets, fix cracks in our housing system, and protect core services.”
2011-06-04 In a recent poll conducted by the Canadian Union of Public Employees 89% of those surveyed supported increased federal and provincial funding for municipal governments.
2011 The City of Calgary is currently involved in the following affordable housing developments: Manchester North Comprehensive Development, Crestwood (Millican-Ogden community), Vista Grande (Vista Heights community), The Bridges: Affordable Housing (Bridgeland-Riverside community), Inglewood Residence Housing Development (Inglewood Community). These initiatives will create approximately 255 new homes for families, singles, couples and individuals with disabilities. It is curious that on closer inspection many of these are already completed. What are the current (2011-06) affordable housing developments?
2011-05-04 Alberta put out a $100-million request for proposals through the provincial 2011-12 Housing Capital Initiatives grant program. A minimum of 660 housing units could be developed, depending on the projects funded. In addition to this year’s funding, more than $1 billion has been invested in more than 10,000 housing units in Alberta since 2007. Increasing the supply of housing for lower-income Albertans is a key part of preventing and ending homelessness, under Alberta’s 10-year plan to end homelessness (more). The provincial government has committed $2.2 million to a 29-unit low income housing project to be run by the Meadowcroft Housing Society in a northwest neighbourhood. The Brentwood Apartments, located at 13535 115th Ave, an ideal location for low-income families (near a major shopping centre, close to the big west Edmonton bus terminal, across the street from Coronation Park). The provincial money covered about 45 % of construction costs for the project. The building contains two bachelor, and 27 one-bedroom units. The suites were supported through a previous housing capital initiative and include barrier-free units. The built-in green features, such as solar power, high-efficiency windows, and geothermal heating, will help lower utility costs.
2011-04-29 the Federation of Canadian Municipalities (FCM) calls for all parties in the House of Commons to turn campaign promises to cities and communities into action. “Forty per cent of federal investments in municipalities will expire in the next 36 months (FCM 2011-04-06),” including investments in front-line policing, infrastructure, public transit and affordable housing.
2011 Alberta > Provincial-Territorial Program Delivery> Under Canada’s Economic Plan > Alberta. “More than $1.3 billion over two years will be delivered by and cost-shared with provinces and territories on a 50/50 basis. As a result of this joint investment, more than 9,200 construction and renovation projects are underway or have been completed across the country including 467 projects for low-income seniors and persons with disabilities, and the renovation and retrofit of existing social housing projects in Alberta. An additional $200 million is being invested to address housing needs in the North, resulting in 213 projects underway or completed. Canada Mortgage and Housing Corporation (CMHC) & Indian and Northern Affairs Canada (INAC) Projects: Renovation and Retrofit of Existing Social Housing: $150 million will be delivered directly by CMHC to renovate and retrofit existing federally-administered social housing. To date 1,310 projects are underway or completed, including the renovation and retrofit of 122 existing social housing projects in Alberta. Addressing First Nations Housing Needs: A total of $400 million over two years will be delivered through CMHC and INAC to create new, federally-assisted on-reserve housing and to renovate and retrofit existing social housing. To date, CMHC has invested in the construction of 275 new social housing projects and the renovation and retrofit of existing social housing projects in Alberta. Municipal Infrastructure Lending Program: Up to $2 billion is available over two years in direct, low-cost loans to municipalities for municipal housing-related infrastructure. To date, 273 low-cost loans totalling more than $2 billion have been approved, including 2 low-cost loans approved for a total of $ 5.68 million in Alberta.” It is interesting to examine more closely the interactive map showing federal partnerships in Calgary. I found only one small affordable housing project, numerous recreation facilities upgrades, etc.
2011-03 Under the “Supporting Vibrant Communities” in the 2011 Federal Budget, the Next Phase of Canada’s Economic Action Plan announced additional support for culture and communities with new budget measures, including support for Aboriginal people, such as: Marking the 100th anniversary of the Grey Cup and the Calgary Stampede with $5 million toward each of the anniversary celebrations. “The Next Phase of Canada’s Economic Action Plan: A Low-Tax Plan for Jobs and Growth.”
2011-03-18 “The 14th Street N.W. Brenda Strafford Foundation Affordable Housing Initiative. The complex will feature 85 two bedroom apartments of which 33 units are targeted to support women and families leaving domestic violence. The Calgary Housing Company currently provides 24 units of housing to Foundation clients. Funding for the program included an additional from the $14 million Brenda Strafford Foundation and $7.9 million in capital funding from the federal and provincial governments under the Canada-Alberta Affordable Housing Partnership Initiative. (Calgary Herald 2008-06-27) .” The Canada-Alberta Affordable Housing Agreement is comprised of a commitment of $98.62 million from each of the two senior levels of government. In total, the federal and provincial governments have invested more than $197 million in the program, which provided over 3,600 affordable housing units in Alberta. (more)
2011-02 Of the 506,607 mortgages in 2011-02 in Alberta, 4,212 or 0.83% are in arrears compared to a national average of 0.45%. according to the latest data from the Canadian Bankers Association (2011-02). “Homeowners in Alberta this year reached a record high for percentage of mortgages in arrears in any month since statistics were kept by the association in the province starting in 1990, reaching 0.84% of total mortgages in January. The statistic shows Albertans are about twice as likely to fall behind as the national average of 0.45%. Manitoba had the lowest percentage, at 0.29% in arrears this year thus far. The national high was in January 1997, when 0.65% of mortgages were in arrears (CBC 2011-05-05).”
2011 Alberta government committed to a 10-year plan to end homelessness.
“There continues to be too much reliance on the for-profit sector in addressing affordable housing needs and too little investment in this issue. The waiting lists for low-income affordable rental housing are years long in the major cities of this province. Meanwhile some of our most vulnerable citizens, including children, people with mental illnesses, and seniors, are left in housing that is either far too expensive or far too poor in quality, and they all pay the price in their health and in their safety.This government eliminated funding of important social housing years ago, and a huge homelessness and housing problem soon developed in our province. With the return of a stronger economy under way and more people coming to Alberta’s labour market, we will see more difficulties (Brian Mason 2011).”
2011 Canada’s Economic Action Plan provides a meagre “$850 million to provinces and territories, over two years, for the renovation and retrofit of existing provincially/territorially administered social housing. Overall, the Economic Action Plan includes $2 billion for the construction of new and the renovation of existing social housing, plus up to $2 billion in low-cost loans to municipalities for housing-related infrastructure. Canada’s Economic Action Plan builds on the Government of Canada’s commitment in 2008 of more than $1.9 billion, over five years, to improve and build new affordable housing and help the homeless.”
2010-11-04 Ivy Zhang, Ivy; Walters, Patrick. “Why does the City of Calgary experience financial stress in providing services to Calgarians, even in good economic times?” A short answer is that, Calgary over-contributes to the balance sheets of the federal and provincial governments, leaving the local government with less than adequate revenue to fund its spending responsibilities.. . . [S]trong labour market conditions in Calgary have acted as a magnet for workers from outside the region. This has created an equally high demand for shelter and support services to address issues such as homelessness and affordable housing – issues that need all orders of government to address. Downloading of many government housing and support programs.”
2010- In Edmonton After the 2009 downturn, it was single-family subdivisions that came back quicker and stronger, representing the bulk of the 34 per cent increase in residential construction permits last year.
2010 In Calgary nearly 6,000 single-family detached houses were built in Calgary (most in the NESW suburbs). There were only 3,000 new multiple-family units under construction.
2010 Attainable Homes Calgary Corporation (AHCC) is a non-profit organization and wholly owned subsidiary of The City of Calgary. The goal of AHCC’s Attainable Home Ownership Program is to develop 1,000 well-appointed, entry-level homes at a price attainable for individuals and families earning $53,000 – $80,000 in household income annually. Attainable Homes partnered with Intergulf-Sidex developers to build the Beacon Heights multi-family complex.
2009 “Canada is one of the few countries in the world without a national housing strategy (United Nations, 2009). Many of the federal governments’ expenditures are cost-sharing, one-time only funding initiatives that lack long-term leadership on homelessness ( United Nations (2009). Report of the Special Rapporteur on adequate housing as a component of the right to an adequate standard of living, and on the right to non-discrimination in this context, Miloon Kothari. Based on Mission to Canada 9–22 October 2007.”
2009 “The highest average monthly rents for two-bedroom apartments in new and existing structures were in Vancouver ($1,169), Calgary ($1,099), Toronto ($1,096), and Ottawa ($1,028). The apartment vacancy rate in the Calgary CMA rose 3.2 percentage points from 2.1 per cent in October 2008 to 5.3 per cent in October 2009. Average rent for a two-bedroom unit was $1,099 per month in October 2009, down from $1,148 in October 2008. The vacancy rate for row (townhouse) rentals was 4.7 per cent in 2009, representing an increase of two percentage points from the previous year. Calgary’s 2009 purpose built rental stock had 684 fewer apartments and nine more row units than in 2008 (more).”
2008-09 The Government of Canada announced $1.9 billion, over five years, for housing and homelessness programs for low-income Canadians. As part of this investment, the Affordable Housing Initiative (AHI) was extended until March 31, 2011. CMHC. Affordable Housing Initiative
2007 “Since 2000, Supporting Communities Partnership Initiative (SCPI) provided approximately $850 million in funding for strategic investments that address homelessness (Falvo 2007).”
2007 Nick Falvo (2007) presented various models for expenditure of a $100 million annual input to affordable housing. “Model 1: $125,000 of equity (i.e., up-front cash) provided at the development stage would be sufficient to create a 450-square-foot bachelor unit of non-profit housing in Toronto that would ultimately require monthly rent equivalent to a single welfare recipient’s (no dependents) shelter allowance from Ontario Works (c.$342/month). This model estimates a $25,000 cost for land, $70,000 for construction and “hard costs,” and $30,000 for soft costs. It also estimates that the units last only 30 years and then lose all of their value. $100,000,000.00 / $125,000 = 800 x 30 = 24,000 household years. $100 million spent on building non-profit housing provides sufficient equity to build roughly 800 bachelor units for 800 core-need individuals. Model 2: Provide an average monthly rent supplement c. government $500 or $6,000 per person per year. $100 million spent on rent supplements provides annual, one-time funding to take roughly 16,667 core-need individuals (most of whom are single) off the street, into shelter. Model 3: $166,000 of equity to create a 2-bedroom unit. The Math: $100,000,000.00 / $166,000 = 602 x 30 = 18,060 household years. $100 million foregone on tax credits awarded to individuals or corporations could provide sufficient equity to build roughly 602 bachelor units for 602 core-need households. $100 million in foregone tax revenue offered through a basic refundable tax credit program provides annual, one-time funding to 55, 556 welfarerecipient households (Falvo 2007).”"
2007 “The persistence of poverty, especially in a wealthy and industrialized nation like Canada, is clearly regarded by the treaty bodies as a human rights failure. http://www2.ohchr.org/english/bodies/cedaw/docs/ngos/PHRC_Canada42.pdf” (See “The Consensus on Canada.” The treaty bodies have repeatedly expressed grave concern, particularly about disastrous levels of homelessness (CESCR 2006, paras. 28, 62; CESCR 1998, paras. 24, 34, 35, 46) and resulting damaging effects, including damage to health (CESCR 2006, para. 57; CCPR 1999, para. 12), lack of adequate housing, especially for children and youth (CESCR 1998, para. 35, CRC 1995, para. 17), Aboriginal peoples (CESCR 2006, para. 24; CRC 1995, para. 17), and women (CESCR 2006, para. 26; CEDAW 2003, paras. 383, 384). http://www2.ohchr.org/english/bodies/cedaw/docs/ngos/PHRC_Canada42.pdf
2005 “Armine Yalnizyan pointed out – Canada had a population of 31 million. 1.7 million Canadians of a total population of 31 million were underhoused or non-housed (Canadian Housing and Renewal Association). That’s 5.5% of the Canadian population without safe, decent and affordable housing (Crowe, Cathy. 2005-01http://tdrc.net/resources/public/Crowe-Newsletter_01-05.htm).”
2006-06 “Municipalities have been under-investing in infrastructure because of fiscal constraints. A number of cities have attempted to measure the magnitude of this infrastructure gap or deficit. The City of Calgary currently has a shortfall, or infrastructure gap, of $5.4 billion over the next ten years (FCM. 2006-06.“Our Cities Our Future Addressing the fiscal imbalance in Canada’s citie today”).”
2006 Edmonton and Calgary combined account for 64.5% of Alberta’s GDP (Conference Board of Canada).
2006-06-22 “While the City of Calgary encourages builders and developers to create affordable housing options (the Planning and Regulation section of the city’s affordable housing strategy states that a primary goal is to “encourage competition and choice in the housing marketplace”) it has yet to implement any firm legislation or policies in this regard. The Municipal Government Act of Alberta prevented cities within the province from dictating affordable housing policies to any private builder or developer. The Act was due for review in November 2006, leaving the door on affordable housing legislation wide open (Evdokimoff 2006-06-22.”
Pomeroy, Steve. 2005-03. “The Cost of Homelessness: Analysis of Alternate Responses in Four Canadian Cities.” Prepared for National Secretariat on Homelessness.
2005 Calgary’s “homeless population grew by 49 per cent between 2002 and 2004; in 2003, two-thirds of Calgary’s poor were ‘working poor’ who received no income support; and close to ?ve per cent of Calgarians went to the Inter-Faith Food Bank for help “Looking Ahead, Moving Forward 2005“.
2004 There were 2,600 homeless people in Calgary (more).
2004-05 “Societal Costs of Homelessness.” Prepared for the Edmonton Joint Planning Committee of Housing and the Calgary Homeless Foundation, by IBI Group.
2005 “Outside the framework of the AHI, $1.6 billion over two years was pledged in the 2005 NDP/Liberal budget (a.k.a., Bill C-48). Most of this money was allocated into three housing trust funds by the Harper government in the 2006 federal budget. While not part of the AHI, this has added momentum on the affordable housing front. (2007). The leader of Canada’s NDP agreed to support the federal budget in 2005 if an additional $1.6 billion was allocated for affordable housing.”
2005 Social Researchers Sawatsky and Stroick (2005) presented their report entitled Thresholds for Locating Affordable Housing: Applying the Literature to the Local Context. City of Calgary.
“Canada stands out as one of the few Western nations that rely almost completely on the market mechanism to supply, allocate, and maintain its housing stock (Scanlon and Whitehead, 2004). The market is the mechanism by which about 95% of Canadian households obtain their housing (Hulchanski 2005).holds for Locating Affordable Housing: Applying the Literature to the Local Context (Hulchanski, David J. 2005-01. “Rethinking Canada’s Housing Affordability Challenge.” Discussion paper. For the Government of Canada’s Canadian Housing Framework Initiative. p. 1).”
2005 Ecological Footprint study found that Calgary residents have the highest Ecological Footprint of any Canadian city at 9.9 global hectares per person – a lifestyle that, if everyone lived that way, would require five Earths to support. 2004
2005-07-04 “Acquisition of Affordable Housing Lands for Municipal Purposes.” Policy Number: AMCW001; Report Number: LASC2005-123; Approved by:Business Unit: Corporate Properties & Building.
2004-2005 Affordable Housing Initiative (AHI) Phase II introduced new programs in the areas of home ownership programs, targeting of AHI-funded programs, cost-sharing arrangements and provision of rent supplements.
2004 Affordable Housing is a Council priority as identified in Looking Ahead, Moving Forward 2002-2004
2004-06-07, in response to the lack of new units, Council directed Administration to develop a short term affordable housing development strategy as phase 1 of a larger five year Sustainable Resource Management Plan (LASC2004-155). http://www.calgary.ca/docgallery/bu/cityclerks/council_policies/amcw001.pdf
2004 CPS99-39 & CPS2002-57 directed Administration to identify and set aside City owned sites for future affordable housing initiatives. http://www.calgary.ca/docgallery/bu/cityclerks/council_policies/amcw001.pdf
2004-07-24 The City of Calgary Council approved a short-term affordable housing development strategy, LAS2004-178 “Calgary’s Affordable Housing Sustainable Resource Management Plan.”as the first phase of a five-year Affordable Housing Sustainable Resource Management Plan. Council directed City administration to: (1) take a leadership role in the development of non-market housing; (2) solicit development proposals from the private sector to create new non-market housing units; and (3) identify City owned surplus sites to support the development of City led social housing initiatives (Sawatsky and Stroick 2005).”
2004-07-24 The City of Calgary Council approved LAS2004-178 Affordable Housing Sustainable Resource Management Plan – Phase 2: Short Term Development Strategy 2004. Council directed Administration to “take a leadership role in the development of 200 units of affordable housing annually to maximize the Affordable Housing Partnership Initiative funding”.
2003 “Cities experienced significant cuts to the social assistance systems in the mid 1990s. The reduction of income supports is universally seen as one of the main reasons for high poverty rates and the growing income gap. (ARUNDEL, ET AL, 2003) (more).”
2003-06-17 TD Economics. “Affordable Housing in Canada: in Search of a New Paradigm.” Urban areas comprised a staggering 80 per cent of Canadian economic activity and employment. Working to find solutions to the problem of
affordable housing is a smart economic policy. An inadequate supply of housing can be a major impediment to business investment and growth, and can influence immigrants’ choices of where to locate. Implementing solutions to resolve this issue ties in well with the TD goal of raising Canada’s living standards and overall quality of life.”
2003 Affordable Housing Initiative (AHI) Phase II began with a meagre federal commitment of $320 million nationwide to provide additional funding for housing targeted to low-income households in communities where there is a significant need for affordable housing. Under Phase II the maximum federal funding is 50 per cent of capital costs to a maximum of $75,000 per housing unit to reduce rents to levels affordable to low -income households. (CMHC)
2003-02-27 Alberta announced $8.5 million in new provincial funding which will be matched by a $8.5 million federal contribution under the Canada-Alberta Affordable Housing Agreement. This brings total funding for the initiatives to $17 million for the fiscal year ending March 31, 2003. This amount will also be enhanced through contributions from other partners including municipalities, local community housing authorities, non-profit organizations and private sector companies.” It should be noted that if one unit costs c. 90,000 to build. it costs c.
2002-07 City of Calgary submitted Corporate Affordable Housing Strategy “Implementing a vision for the future… “A range of housing options exist for all ages, income groups, family type.
2002-06-24 The Governments of Canada and Alberta announced the Affordable Housing Program Agreement which provided funding (2002-2007?) to help increase the supply of affordable housing in the province. Federal funding of $67.12 million will be matched by an equal contribution from the province and other partners to facilitate the development of affordable housing in high need areas of the province. It was the sixth affordable housing agreement signed in the past six months and confirmed the Government of Canada’s commitment to housing as a means to support strong and safe communities. “(more) NB. The total cost of one 100-unit apartment complex project was over $4 million.
2002 The citizens of Calgary sent $4.6 billion more in taxes and other payments to Ottawa than they received in various benefits from the federal government (K & L Spatial Economics).
2002 Annual spending on homelessness initiatives in Calgary were c. $72.4 million.
1996-2001 “Provincial/territorial and federal governments have enjoyed an average 25 per cent increase in their revenues from 1996 to 2001. Municipalities have experienced only an average 14 per cent increase in revenues during that period (FCM, 2005).”
2001-11 “Federal, provincial and territorial housing Ministers outlined broad parameters for bilateral Affordable Housing Program Agreements. Federal funding was limited to a maximum of $25,000 per housing unit, to a total nationwide of only $680 million in funding in Phase I for the creation of new rental housing, major renovation and conversion (CMHC).”
2001 “The federal government agreed to a framework agreement with the provinces and territories wherein it would eventually commit $1 billion towards affordable housing over a five-year span. There was no stipulation in the framework agreement around core need. The federal government’s agreement with each province and territory was different, with each province/territory having to commit matching funds of different types (a great deal of the “matching funds” were not cash and did not come directly from the province/territory in question). The entire process is called the Affordable Housing Initiative (AHI). The AHI represented a very different way of financing affordable housing. The minimum affordability stipulation was that each unit had to be at or below average to 20 years). Funded programs under the AHI included home ownership, rental housing, new construction, renovation, urban revitalization,” conversion, new rent supplements, and supportive housing programs(Falvo 2007).”
2001 The provincial and municipal social housing agencies (Calgary Housing Authority and Calhome Properties) merged created the municipally owned and operated Calgary Housing Company (CHC). CHC administers social housing programs (non-seniors) in Calgary through the ownership or management of approximately 7500 housing units. Calgary Housing Company (CHC) is a City of Calgary owned corporation providing safe and affordable housing solutions to citizens of Calgary. CHC operates and manages over 10,000 subsidized and affordable housing units and has a variety of housing options for low-income households including duplexes, townhouses and high-rise apartments. CHC has a reporting relationship to Corporate Properties & Buildings, but functions under its own independent Board of Directors with a mandate to provide affordable housing solutions to Calgarians.
2001 “The Government of Canada provides financial assistance for the supply of new affordable rental housing under the Affordable Housing Program. Then, in November 2001, after almost a decade of withdrawal from assistance for affordable housing, the federal government committed $680 million towards rental housing (to be spent over five years) (Falvo 2007). By the end of 2007-2008, the Federal Government’s investment in this program will total CAD$1 billion, an amount that will be matched by provincial and territorial governments.”
2001 Canada “is one of the one of the more inegalitarian Western nations (that is, there is a wide gap between rich and poor) and ranks near the bottom of the list in an eighteen-country comparison of net social expenditure by the OECD (Adema, 2001, Table 7 cited in (Hulchanski 2005). Hulchanski, David J. 2005-01. “Rethinking Canada’s Housing Affordability Challenge.” Discussion paper. For the Government of Canada’s Canadian Housing Framework Initiative. p. 1
1999 “One of the first signs that the federal government was interested in getting back into affordable housing was the 1999 announcement of the Supporting Communities Partnership Initiative (SCPI) (Falvo 2007).”
1998-11 Mayors of Canada’s largest cities at the caucus of the Federation of Canadian Municipalities (FCM) passed a resolution declaring homelessness a national disaster.
1998 Canada alone “holds the dubious distinction of having received the strongest rebuke ever delivered by the United Nations for inactivity on homelessness and other poverty issues. In 1998, the UN Committee on Economic, Social and Cultural Rights maintained that Canada’s failure to implement policies for the poorest members of the population in the previous 5 years had “exacerbated homelessness among vulnerable groups during a time of strong economic growth and increasing affluence” (p.15). The irony was that this rebuke was given in the midst of Canada having been named for several years in a row as the best country in the world in which to live. Thus, what we are seeing is a disturbing situation where a steadily increasing level of homelessness exists in the very heartland of prosperity and comfort. (Pohl, Rudy. 2001-11. “Homelessness in Canada.)”
The United Nations Committee on Economic, Social and Cultural Rights issued a highly critical and detailed report on the Canada’s social policies in its 1998 review of Canada’s compliance with these rights (United Nations, 1998) particularly about disastrous levels of homelessness (CESCR 1998, paras. 24, 34, 35, 46) and resulting damaging effects, including damage to health (CESCR 1998, paras. 24, 34, 35, 46) and resulting damaging effects, including damage to health (CCPR 1999, para. 12), lack of adequate housing, especially for children and youth (CESCR 1998, para. 35, CRC 1995, para. 17), Aboriginal peoples (CRC 1995, para. 17).
1996 The Calgary economy generated 24% of all new jobs in Canada, even though the city contained less than 3% of the population (k & l consulting, 2003).
1996 CMHC deemed that 20% of Canadian households (1.7 million households) were in core housing need. These households could not
find adequate and suitable housing without spending 30% or more of their pre-tax income. CMHC found that a disturbing 656,000 households (7%) spent at least half of their before-tax income on shelter in 1996, up from 422,000 households, or 5%, in 1991. While accounting for only 35% of all households, almost 70% of those in core need were renters. Much of the analysis, advocacy and action on affordable housing suffers from three flaws, in our view:
• Income levels are taken as given. Too little thought is given to ameliorating the root cause of the affordable housing problem – that there are simply too many low income households in Canada. The focus has primarily been on measures to boost supply, with an emphasis on incentives to increase the overall rental supply – which has only a limited impact at the affordable end of the scale. Many of the measures that have been recommended
as a means of stimulating this new supply (whether expenditure-based or tax-based) are inefficient, which is to say that they entail a high public cost per unit of affordable housing created. TD recommended that governments adjust the design of federal and provincial benefit and tax systems to “make work pay” by reducing the clawback rate for benefits for low-income households. Programs such as the federal-provincial National Child Benefit (NCB) initiative have dealt with the poverty trap to some extent by effectively combining income support with social services. However, the high taxback issue remains. Provincial governments need to step up their efforts and become a leading contributor within the Affordable Housing Framework agreement. There also needs to be more recognition of the fact that municipal governments are currently in no position to live up to their side of the bargain. New responsibilities have been laid at their doorstep in recent years, as a result of provincial and federal downloading and offloading of services. Yet, municipalities have few revenue tools to draw on beyond the slow-growing (and flawed) property tax. As we have stated in all of our reports on Canada’s cities over the past year, municipalities need a more sustainable funding arrangement, which arms them with increased flexibility (TD 2003).
1996 In the city of Calgary, with one of the most acute housing shortages, only 16 new units of rental housing were built in 1996 (more).
1996“The federal government further removed itself from low-income housing supply by transferring responsibility for most existing federal social housing to the provinces (Hulchanski, J. David. 2009. “Homelessness in Canada: Past, Present, Future.”).
1996 “A survey in Calgary found that of the 615 homeless people surveyed on 26 May 1996, 20% were Aboriginals, 3% Asiatics and 3% Blacks (City of Calgary 1996 cited in Library of Parliament 1999).”(17) City of Calgary, Homeless Count in Downtown Calgary, Alberta, Canada, 1996, City of Calgary Community and Social Development Department of Social Research Unit, 1996.
1993 All funds for social housing were cut from the federal budget (Hulchanski, 2002: 8-15; Chisholm, 2003: 5-11). Most provinces, including Alberta, followed suit.
1992 Canada introduced the Home Buyers’ Plan which was the only form of federal assistance for home-buyers. Canadians who meet certain eligibility conditions can withdraw up to C$20,000 tax-free from their Registered Retirement Saving Plans (RRSPs) for house purchase. The money remains tax-exempt if it is repaid within 15 years. Since its inception in 1992, some 1.2 million people have participated in the programme, channelling C$12.0 billion to the housing market.
1984 – 1993 The Canadian Federal Government withdrew from providing housing assistance for low-income Canadians (Sawatsky and Stroick 2005).” This is not surprising given the general trend away from collective state solutions to a social and economic model that relies solely on the “the market” for services including shelter. It also represents a shift away from seeing housing as a home, to seeing housing as an investment. The problem with this approach is that the market will only provide housing to those who can pay for it – in other words, lower- and moderate income people who cannot afford market price for homeownership or, increasingly, for rental housing are priced out of the market. If the gap between the rich and the poor continues to increase as it has since 1980, housing issues will continue to be a concern (2011).” “The co-op and non-profit programs (with their novel “income mix” approach) introduced in 1970s were terminated in 1984 (Falvo 2007).”.
1986 Ottawa Charter for Health Promotion. WHO, Geneva.
1964-1984 The Canadian Federal Government “built 200,000 public housing units and established a variety of housing initiatives, including non-profit and co-op housing programs, as well as a native housing program. This period can be characterized as one with an ‘inclusionary philosophy’ in which the social need for affordable housing in Canada was being addressed (Sawatsky and Stroick 2005).”
1977 Canada did not have a homelessness issue (Hulchanski 2009-02-18).
1949 – 1963 The Canadian Federal Government was not significantly involved in the provision of affordable housing under PM Louis St. Laurent (1948-1957) and PM John Diefenbaker (1957 – 1963). Even with public concern for more social housing, only 12,000 units were built for low-income Canadians (Sawatsky and Stroick 2005).
1949 The Canadian National Housing Act was implemented with amendments.
1945- “After the Second World War, improvements in housing finance, residential land servicing and building techniques, materials, and regulations produced high-quality housing for the vast majority of Canadian households (Hulchanski, Davis J. 2005-01. “Rethinking Canada’s Housing Affordability Challenge.” Discussion paper. For the Government of Canada’s Canadian Housing Framework Initiative. p. 1)”
1938 The Canadian National Housing Act was established but it was not implemented pending amendments.
2011-06-09“Canada’s cities Poor relations: Mayors need more money and more powers.” The Economist. Vancouver.
Selected Webliography and Bibliography
- The Economist. 2011-06-09. “Canada’s cities Poor relations: Mayors need more money and more powers.” Vancouver.
Calgary Herald. 2008-06-27. “New project will shelter abused women.”
Evdokimoff, Natasha. 2006-06-22. ”Is the Sky the Limit? Finding solutions to Calgary’s affordable housing problem.” Condo Living.
- Falvo, Nick. 2007-12. “Alternate Approaches to Addressing the Lack of Affordable Housing in Canada.” Paper presented to Professor George Fallis. Policy Alternatives to Reduce Core Housing Need AS SOSC 4099 3.00 A Directed Reading
Falvo, Nick. 2007-12. “Alternate Approaches to Addressing the Lack of Affordable Housing in Canada.” Presentation for PEF Panel: “Interdisciplinary Approaches to Economic Issues” Canadian Economics Association. Annual Meetings
Dalhousie University. Halifax, Nova Scotia. June 1-3, 2007
The Economist. 2011-06-09. “Canada’s cities Poor relations: Mayors need more money and more powers.” Vancouver.”Downtown Eastside, a ghetto of crime, poverty and drug addiction that is the country’s sickest urban area. Soaring house prices intermingle with homelessness. The middle class is being squeezed out to the suburbs.” “Provincial governments have neglected their responsibility for such matters as social housing, welfare, mental illness, drug addiction and policing. All told, Canada’s big cities need at least C$238 billion ($243 billion) to repair and expand infrastructure, according to the Federation of Canadian Municipalities. But municipal governments lack both money and powers. They get only eight cents out of every tax dollar. Their revenues come mainly from property taxes.” “They have lobbied the federal government to make permanent C$2 billion in annual funding programmes for roads, housing and police set to expire in 2014.” “[R]ural areas continue to be over-represented in the House of Commons. But four out of every five Canadians now live in a city,
Hulchanski, David. J. 2002-12. “Housing Policy for Tomorrow’s Cities.” Discussion Paper F|27. Family Network.
Hulchanski, David J. 2005-01. “Rethinking Canada’s Housing Affordability Challenge.” Discussion paper. For the Government of Canada’s Canadian Housing Framework Initiative. p. 1
Hulchanski, J.D. 2009-02-18. Conference keynote address, “Growing Home: Housing and Homelessness in Canada: Past, Present, Future.” University of Calgary.
Pohl, Rudy. 2001-11. (“Homelessness in Canada.)”
Sawatsky, Janet; Stroick, Sharon M. 2005. “Thresholds for Locating Affordable Housing: Applying the Literature to the Local Context.” City of Calgary.
Vrbanovic, Berry. 2011-06-06. StatementFederation of Canadian Municipalities (FCM).
FCM. 2011-04-06. “FCM Releases Federal Election PLatform: Parties need plan as 40% of municipal funding expires.” Date accessed: June 05, 2012.
Library of Parliament. 1999-01-18. Homelessness.
Potentially Useful Links on Affordable Housing
- Composition of Homeless Population
- HOMELESSNESS IN CANADA
- May 2007: Canada’s Lack of Affordable Housing | Canadian Centre for Policy Alternatives
- New project will shelter abused women
secondarysuitesSES2007Calgary Looks Toward Lower-Footprint Future
dt Streetside Development Corporation : Past Projects
dt http://www.colliers-international.com/Calgary/Castleview/Castleview-Park-Apartments.pdfdt karoleena.com/wp-content/uploads/2010/12/graycie_spec_sheets.pdf
dt Jan Gehl lecture on ‘Cities for People’ – Great Public Spaces (Calgary, AB) – Meetup
dt Archived – Budget 2011 (March 22, 2011) – Chapter 4: Supporting Job Creation
dt canada budget 2011 – Google Search
dt FFWD – Calgary News & Views – News – Forecast? Cloudy with a chance of lawsuits
dt Affordable Housing Techniques Publication
dt City N. Van – Housing – Affordable Housing Policies
dt IZ Builder Conine
dt Cities for People – Google Booksdt Projects Map – Canada’s Economic Action Plan
dt Affordable Housing Money Counts – Google Docsdt
“calgary homeless foundation” “societal costs of homelessness” 2004 – Google Searchdt $140 square foot to build a housing unit calgary? – Google Searchdt 2011 November 21 « Decisions, Decisions, Decisionsdt 4 million to build 36 unit multi-family complex? – Google Searchdt A leg up for Britain’s generation rent – World – Macleans.cadt A practical framework for expanding affordable housing services in Australia: learning from experience | Australian Policy Onlinedt A Tale of Two Town Houses – Magazine – The Atlanticdt Affordable Housing – CPD – HUDdt affordable housing – Google Scholardt affordable housing – Google Searchdt Affordable Housing | CMHCdt Affordable Housing and Homelessnessdt Affordable housing debate heats up amid cutbacks – The Whig Standard – Ontario, CAdt Affordable Housing Initiative | CMHCdt Affordable Housing Institutedt Affordable Housing Institutedt Africa’s infrastructure: A road to somewhere | The Economistdt AHI: United States » OECD bubbles? LMNO bubbles! OSAR GSE M? Part 5, regulate rents, but not too muchdt Alberta budget promises record $33B in spending – Business – CBC Newsdt Amazon.com: Affordable Housing and Public Policy: Strategies for Metropolitan Chicago (A Chicago Assembly Book) (9780962675522): Lawrence B. Joseph: Booksdt Analysis of Urban Growth and Sprawl … – Basudeb Bhatta – Google Booksdt Analysis of Urban Growth and Sprawl … – Basudeb Bhatta – Google Booksdt Analysis of Urban Growth and Sprawl from Remote Sensing Datadt Australia’s affordable housing crisis: the price of poor public policy – On Line Opinion – 20/10/2003dt Backgrounder: 2010/2011 Housing Capital Initiatives Projects – Canada’s Economic Action Plandt BBC News – ‘Housing shortage crisis’ predicted in IPPR reportdt BBC News – Housing: David Cameron vows to ‘get Britain building’dt BBC News – Ken Livingstone pledges ‘London Living Rent’ systemdt Big cities back a pennydt Bronconnier floats idea of legalizing basement suites – Calgary – CBC Newsdt Building and Construction Canada – Spring 2010 [20 - 21]dt calgary multi-family 3 storey complex 36 units construction costs? – Google Searchdt Calgary Philharmonic Orchestra singing Tweets goes viraldt canada cost of homelessness – Google Scholardt canada’s economic action plan social housing – Google Searchdt Canadian Homelessness Research Networkdt Canadian Political and Economic Newsdt CARH – 2012 Mid-Year Meeting Brochure/Agendadt CBC: The fifth estate – No Way Home, The Cost of Homelessnessdt CBI: CBI comments on prime minister’s speech to CBI Annual Conferencedt Chartered Institute of Housing – Search Resultsdt Chris Tilly’s Research : Center for Industrial Competitiveness : UMass Lowelldt City Mayors: Affordable housing – USAdt CMHC :: INSURED FINANCINGdt Concerns raised with Calgary alderman over Eau Claire condo land dealdt Congress for the New Urbanismdt CUCS – David Hulchanski – Housing Policy for Tomorrow’s Cities (Report)
dt CUCS – J. David Hulchanskidt Dab_solver – affordable housing
dt Definition of general housing terms – Housing – Department for Communities and Local Government
dt Delivering Affordable Housing – Housing – Department for Communities and Local Government
dt Divided We Stand – Books – OECD iLibrary
dt Divided We Stand | OECD Free Preview | Powered by Keepeek Digital Asset Management | http://www.keepeek.comdt Divided we Stand: Why Inequality Keeps Rising
dt Do Rising Tides Lift All Prices? Income Inequality and Housing Affordability
dt Does Affordable Housing Detrimentally Affect Property Values? A Review of the Literature
dt Downtown land deal to go under microscope – Calgary – CBC Newsdt Economic inequality – Wikipedia, the free encyclopedia
dt Economics focus: House of horrors, part 2 | The Economist
dt FAST FACTS: “housing” that will lead to a need for more social housing | Canadian Centre for Policy Alternativesdt FCM – Housing
dt Five economic tests for the majority government | Canadian Centre for Policy Alternativesdt From Need to Affordability: An Analysis of UK Housing Objectives
dt From Need to Affordability: An Analysis of UK Housing Objectivesdt From Need to Affordability: An Analysis of UK Housing Objectives
dt Global house prices: Castles made of sand | The Economistdt Government program boosts Brazil housing market | Reuters
dt health and homelessness (PRB99-1E)
dt Help:Footnotes – Wikipedia, the free encyclopediadt Home – gltn
dt Homelessness | Here to Help, A BC Information Resource for Individuals and Families Managing Mental Health or Substance Use Problemsdt Homelessness in Canada – Wikipedia, the free encyclopediadt Homelessness: Past, Present, Future – Hulchanski – 2009dt House building scheme designed to kickstart market unveiled | Money | The Guardiandt Housing – Housing Need / Indicators of Well-being in Canadadt Housing Affordability and Needs Studies Based on Census Data | CMHCdt Housing Affordability Index – Wikipedia, the free encyclopediadt Housing and Urban Policydt Housing policy matters: a global … – Shlomo Angel – Google Books
dt Housing supply and demand – UK Parliamentdt Housing Unaffordability as Public Policy: The New Demographia International Housing Affordability Survey | Newgeography.comdt how much does it costs to build 1 family unit in a multi-family complex? – Google Searchdt Hulchanski 2008-2009 Homeless Families into and Out of Homelessness.dt ibi group. (2003). societal cost of homelessness. calgary: author. – Google Search
dt Initiative for Affordable Housing – Glossary
dt International perspectives on factors contibuting to homelessness (PRB99-1E)dt International perspectives on factors contibuting to homelessness (PRB99-1E)
dt International Standards – Adequate Housingdt intraspec.ca/2000_Hulchanski_Counting-Homeless-People.pdf
dt intraspec.ca/HOMELESSNESS_in_Toronto.pdfdt Is Housing Unaffordable? Why Isn’t It More Affordable?dt ITC – News
dt JACKY Q. ZHANG–MMP Engineering – Providing quality structural engineering since 1978.
dt Joint government funding increases affordable housing across Alberta – Canada’s Economic Action Plan
dt Keeping to the Marketplace
dt Knowing when it’s green: A Citizen’s Guide to (LEED for) Neighborhood Development | Kaid Benfield’s Blog | Switchboard, from NRDC
dt Land Economy Staff – Ms Sarah MONK
dt Land Economy Staff – Professor Christine WHITEHEAD
dt Laying the Foundations: A Housing Strategy for England – Housing – Department for Communities and Local Government
dt Lessons from the History of Affordable Housing Cooperatives in the United States: A Case Study in American Affordable Housing Policy – page 12 | American Journal of Economics and Sociology, The
dt Lessons from the History of Affordable Housing Cooperatives in the United States: A Case Study in American Affordable Housing Policy – page 16 | American Journal of Economics and Sociology, The
dt Lessons from the History of Affordable Housing Cooperatives in the United States: A Case Study in American Affordable Housing Policy | American Journal of Economics and Sociology, The | Find Articles
dt Life of luxury
dt Manitoba Local Government | Province of Manitoba
dt Mayoral candidates split over housing – Calgary – CBC News
dt Mayoral hopefuls demand probe of land deal
dt Mayoral hopefuls demand probe of land deal
dt Mayors want $2.5B break; Big cities demand GST rebate, plus fuel, income, sales taxes Ambitious agenda draws cautious nod from Martin envoydt Measuring Housing Affordability: Looking Beyond the Mediandt Methodology for the Housing Affordability Indexdt mhupa.gov.in/w_new/AffordableHousing.pdfdt MIT CRE : Measuring Housing Affordability – The HAI Affordable Housing Index
dt New April 19, 2010 CMHC Canadian Mortgage Rules Summarydt Next federal budget must put rental housing market on solid ground – thestar.comdt Notes and definitions for affordable housing supply – Housing – Department for Communities and Local Governmentdt NRDC: LEED for Neighborhood Developmentdt Perspectives on Labour and Income – Measuring housing affordabilitydt PolicyOptions Wiki / Affordable Housing
dt Progress being made in Attawapiskat: Red Cross | CTV News
dt Public housing – Wikipedia, the free encyclopediadt Public Policy in Municipalities – Publicationsdt Publications and Reports | CMHCdt publications.gc.ca/collections/Collection/NH18-23-55-4E.pdfdt QAHC – About Affordable Housing
dt Rebuilding an affordable, sustainable community in Galveston | Kaid Benfield’s Blog | Switchboard, from NRDC
dt Relationship between Housing Affordability and Economic Development in Mainland China—Case of Shanghai | Browse – Journal of Urban Planning and Development
dt rental market data canada – Google Search
dt Restructuring housing systems : from social to affordable housing? – LSE Research Online
dt Rich-poor divide widens in advanced economies – FT.com
dt Scientific Commons: A practical framework for expanding affordable housing services in Australia: learning from experience (2004), 2004 [Vivienne Milligan, Peter Phibbs, Kate Fagan, Nicole Gurran]dt Search Results | CMHCdt Shelter poverty : new ideas on housing affordability / by Michael E. Stone | Miami University Libraries
dt Sloan: Municipalities are seeking more stable fundingdt Social housing being renovated in London – Canada’s Economic Action Plan
dt Sprawl brawl
dt Talk:Affordable housing – Wikipedia, the free encyclopedia
dt Taylor & Francis Online :: An affordability crisis in British housing: Dimensions, causes and policy impact – Housing Studies – Volume 9, Issue 1dt The affordability of homeownership to middle-income Americans
dt The Case for Congestion – Neighborhoods – The Atlantic Cities
dt The City of Calgary – Research on homelessness
dt The City of Calgary: Older Adult Housingdt The Federal Reserve Bank of San Francisco: Economic Research, Educational Resources, Community Development, Consumer and Banking Informationdt The good, the bad and the ugly: Housing demand 2025 > Publication :: IPPRdt The Homeless Hub – Resource Precarious Housing and Hidden Homelessness Among Refugees, Asylum Seekers, and Immigrants in the Toronto Metropolitan Area
dt The LaCaille Group – Building and Construction Canada Magazine
dt The New Blackwell Companion to the City – Gary Bridge, Sophie Watson – Google Booksdt The New Blackwell Companion to the City – Gary Bridge, Sophie Watson – Google Books
dt U.K. fares worst on income inequality among advanced economies: OECD – The Globe and Mail
dt UN-HABITAT.:. Housing rights
dt UN-HABITAT.:. Land and Housing | Events | International Housing Summitdt Urban and Regional Planning – The Canadian Encyclopedia
dt What does the literature tell us about the social and economic impact of housing? Report to the Scottish Government: Communities Analytical Servicesdt Wikipedia:Cheatsheet – Wikipedia, the free encyclopedia
dt Will Housing Projects Boost GDP? – Economic Observer News- China business, politics, law, and social issues
dt http://www.affordablehousinginstitute.org/resources/library/DS_saopaulo_best_practices_2008.pdfdt http://www.ahuri.edu.au/downloads/NRV3/NRV3_Research_Paper_1.pdf
dt http://www.bov.com/filebank/documents/25-34 Joseph Darmanin.pdf
dt http://www.cmhc-schl.gc.ca/odpub/pdf/63057.pdfdt http://www.cmhc-schl.gc.ca/odpub/pdf/63390.pdf?lang=en
dt http://www.cnhed.org/download/123321_U127242__746634/Continuum of Housing Report.pdf
dt http://www.fcm.ca/Documents/reports/The_Housing_Market_and_Canadas_Economic_Recovery_EN.pdfdt http://www.fig.net/pub/figpub/pub48/figpub48.pdf
dt http://www.freethechildren.com/getinvolved/youth/campaigns/onenightout/docs/One Night Out Fact Book.pdf
dt http://www.gltn.net/images/stories/gltn_capacity_development_strategy_-_overview.pdfdt http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&ved=0CDQQFjAD&url=http%3A%2F%2Fwww.communityhousing.com.au%2Fresources%2FBP3%2520-%2520Objectives%2520and%2520Targets.doc&ei=DknlTsKFMOft0gGumI2ABg&usg=AFQjCNHxOdRH1-NTyfPPuTI6axmEXXEFkg
dt http://www.homelesshub.ca/ResourceFiles/Documents/6.2 Menzies – Homeless Aboriginal Men.pdfdt http://www.huduser.org/periodicals/cityscpe/vol1num3/winnick.pdf
dt http://www.ippr.org/images/media/files/publication/2011/05/Good bad and ugly – Housing demand 2025_1829.pdf
dt http://www.nationalhousingconference.org.au/downloads/1999/DayOne/judy_yates_paper.pdfdt http://www.ncsu.edu/ncsu/design/cud/pubs_p/docs/UDinHousing.pdf
dt http://www.policyalternatives.ca/sites/default/files/uploads/publications/Manitoba Office/2011/04/housing and elections April 2011.pdf
dt http://www.policyalternatives.ca/sites/default/files/uploads/publications/National_Office_Pubs/socialwatch2004.pdfdt http://www.ppm-ppm.ca/SOTFS/Hulchanski.pdf
dt http://www.rbc.com/economics/market/pdf/house.pdfdt http://www.rbc.com/newsroom/pdf/HA-1125-2011.pdf
dt http://www.ucalgary.ca/cities/research_series/AffordableHousingInternationalExperiences.pdfdt http://www.umac.mo/fba/irer/papers/past/Vol7_pdf/1-30.pdf
dt http://www.uml.edu/centers/cic/Research/Tilly_Research/Housing-Tilly chapter-GRBT106-2299G-01-020-037.pdf
dt http://www.urbancenter.utoronto.ca/pdfs/researchassociates/2005_Hulchanski_Conference.pdfdt http://www.urbancenter.utoronto.ca/pdfs/researchassociates/Hulchanski_Concept-H-Affd_H.pdf
dt http://www.vchr.vt.edu/pdfreports/Richmond_Affordable Housing Demand.pdf
dt http://www.vibrantcalgary.com/uploads/pdfs/VCC_Cost_of_Living_Fact_Sheet_August_2009.pdfdt YFile – York MES student coordinates first heat registry program
Filed in affordable housing, economic efficiency, Economics, Power and everyday life, risk management, Robust conversations, Social History Timeline, social media, wealth disparities will intensify
Tags: affordable housing, Calgary, Federation of Canadian Municipalities, fiscal imbalance, homelessness, The Economist, urban studies, urbanism, yyc
“The ideal lecture theatre is vast, truly vast. It is very sombre, very old amphitheatre, and very uncomfortable. The professor is lodged in his chair, which is raised high enough for everyone to see him; there is no question that he might get down and pester you. You can hear him quite well, because he doesn’t move. Only his mouth moves. Preferably he has white hair, a stiff neck and a Protestant air about him. There are a great many students, and each one is perfectly anonymous. To reach the amphitheatre, you have to climb some stairs, and then, with the leather-lined doors closed behind, the silence is absolute, every sound stifled; the walls rise very high, daubed with rough paintings in half tones in which silhouettes of monsters can be detected. Everything adds to the impression of being in another world. So one works religiously. (History student, female, aged 25 – cited by Bourdieu and Passeron 1994:1)”
Bourdieu used this student’s description of the ideal lecture theatre to illustrate his theme of the French professor in his rostrum as deus absconditus  (Bourdieu and Passeron 1994a:11)
This Adobe Photoshop layered image or digitage reflects Bourdieu’s student’s ideal lecture theatre but was also informed by my teaching, learning and research with urban Inuit, First Nations and African Canadians. The intimidating architecture and décor of the ideal lecture room and gallery served to inspire awe and an almost sacred respect. Starting from the student’s description of the ideal lecture theatre I created this layered digitage in Adobe Photoshop using borrowed images of tourists in the Pantheon in Rome (including an Inuit student wearing her amautik), the Quesnay Theatre (1788), Raphael’s School of Athens with Aristotle and Plato in the centre; a generic business meeting, McGill University’s MacDonald-Stewart Physics building with pillars on which the words Power and Knowledge were engraved; a white-haired immobile male professor at his rostrum, a Roman Marble Rostrum. A relief of Triton illustrates the mythical monster-like creatures depicted on the walls of the theatre. The amphitheatre with leather-backed chairs was designed to silence students whose focus was entirely centred on the soft-spoken professor at his rostrum.
Bourdieu (1994) used his concept of Deus Absconditus in his critical examination of the role of academics in the French tradition based on a 1960s study in French universities which he claimed was still relevant in the 1990s, who claim knowledge and power from the safe distance of the rostrum (Bourdieu and Passeron 1994:11).
“It is in all its peculiarities in which the academic institution locates the teacher–the rostrum, the chair from which a French professor holds forth, his position at the point where all attention converges–that he finds the material conditions to keep his students at a distance, to require and enforce respect, even when, left to himself, we would decline it. Physically elevated and enclosed within the magistral chair which consecrates him, he is separated from his audience by a few empty rows. These physically mark off the distance which the profane crowd, silent before the mana of the word, timorously respects and abandons to the most well-trained zealots, pious lesser priests of the professorial word. Deus absconditus, remote and untouchable, protected by obscure and alarming spiritual ‘authorities’ (so many mythologies to him), the professor is in fact condemned by an objective situation more coercive than the most imperious regulation to dramatic monologue and virtuoso exhibition (Bourdieu, 1994, p. 10).”
He explored how academics use language and linguistic misunderstanding in the educational process. Academics maintain an ontological, epistemological, pedagogical and embodied distance through the use of text which serves as a tool of distantiation filtering out all but those who are best suited to become their progeniture.
1. Deus Absconditus according to Plotinus (204-270 CE) refers to a transcendent God who is also the Primal Will with its inherent concepts of creation as emanation and the eternity of the world, and the great chain of being, which has influenced Judaism, Christianity, Islam and the Baha’i Faith (Mautner 1997). Plotinus (204-270 CE) organized Platonic philosophy (427-347 BC) into a system referred to as neo-Platonism (a term coined by Thomas Taylor 1800s) which had a profound influence on late classical, medieval Christian, Islamic and Renaissance thought. Plotinus (250) argued that all modes of being emanate from the Platonic concepts of the “One (Plato’s Parmenides)” and “the Good (Plato’s Republic) which, according to Plotinus, is the entity deus absconditus which has influenced Judaism, Christianity and Islam since the time of Plotinus and is referred to a transcendental Godhead, the Great Chain of Being and the Primal Will. There has been a revival in interest in the writings of Plotinus (Mautner 1997).
Derrida leaves room for the possibility of the existence of the Primal Will without granting human capacity to transcendence.
Pierre Bourdieu used the term deus absconditus to critically examine the role of academics who claim knowledge and power from the safe distance of a rostrum (Bourdieu and Passeron 1994:11). Donna Haraway also referred indirectly to the way in which scientists claim a superior perspective through a god’s-eye-view.
Bourdieu, Pierre; Passeron, Jean-Claude. 1994a. “Introduction: Language and Relationship to Language in the Teaching Situation.” in Bourdieu, Pierre; Passeron, Jean-Claude; de Saint Martin, Monique. 1994. Academic Discourse: Linguistic Misunderstanding and Professorial Power. Stanford, California: Stanford University Press. Pp. 1-34.
Bourdieu, Pierre. Trans. Richard Nice. (1984). Distinction: A Social Critique of the Judgment of Taste. Cambridge, MA: Harvard.
Bourdieu, Pierre. Outline of a Theory of Practice. Trans. Richard Nice. (1989). Cambridge: Cambridge Univ. Press.
Bourdieu, Pierre. Trans. Richard Nice. (1990) The Logic of Practice. Stanford: Stanford U. Press.
Bourdieu, Pierre; Passeron, Jean-Claude; de Saint Martin, Monique. Trans. Richard Teese. (1994). Academic Discourse: Linguistic Misunderstanding and Professorial Power. Stanford: Stanford U. Press.
Bourdieu, Pierre, Jean-Claude Passeron, de Saint Martin, Monique. 1994b. Academic Discourse: Linguistic Misunderstanding and Professorial Power. Translated by R. Teese. Stanford, California: Stanford University Press.
Timeline of hermeneutics
planets in cyberspace, logos for Web 2.0 digitage, stars in virtual constellations, cells for mind maps, images to embed in mise-en-abyme, avatars, . . . interwoven, inextricably linked, inter-related,
“The stages that mark the wayfarer’s journey from the abode of dust to the heavenly homeland are said to be seven.
Some have called these Seven Valleys, and others, Seven Cities.
And they say that until the wayfarer taketh leave of self, and traverseth these stages, he shall never reach to the ocean of nearness and union, nor drink of the peerless wine.” *
And of the seven valleys the third valley is the valley of knowledge in which the His inner eyes will open and he will privily converse with his Beloved;
he will set ajar the gate of truth and piety, and shut the doors of vain imaginings.
He in this station is content with the decree of God, and seeth war as peace, and findeth in death the secrets of everlasting life.
With inward and outward eyes he witnesseth the mysteries of resurrection in the realms of creation and the souls of men, and with a pure heart apprehendeth the divine wisdom in the endless Manifestations of God.
In the ocean he findeth a drop, in a drop he beholdeth the secrets of the sea.*
Split the atom’s heart, and lo!
Within it thou wilt find a sun.
[Persian Mystic Poem]*
Filed in Blogosphere, Literature, Metaphors, Mind Brain, Philosophy, Power and everyday life, Technology. Mind and Consciousness, Visual Arts
Tags: avatars, Creative Commons, cyberspace, digitage, glass bowl reflections, icons, in a drop, logo, logo size default, meta4site, mise en abyme, reflexivity, Spherical Reflections, Web 2.0
December 31, 2009
In the southwest of the city, trees were covered in hoar frost, Christmas lights shone through halos of dense fog and there were patches of black ice on the bridge across the Bow. My mind was far away even as I listened. I had googled Cambodia before we went to the dinner invitation, but nothing could have prepared me to meet this survivor of the “killing fields.” This gifted scientist, with an unshakable belief in God, was the sole infant who somehow miraculously clung to life while hundreds of mother’s babies lay lifeless beside him, around him, under him. He rejects the label of miracle child, preferring to travel the globe to study, to learn and to share, to either help or do no harm . . . with an intensity that can be vertiginous.
A group of Vietnamese-American immigrants compiled the following list of cultural differences (1978) shortly after arriving in the United States when they were living between two worlds. Dr. Douglas K. Chung, Professor at Grand Valley State University School of Social Work, Grand Rapids, Michigan (1992) included this comparison to enhance understanding of cultural shock that Indochinese refugees experience in Western countries.
|We live in time.||We live in space.|
|We are always at rest.||We are always on the move.|
|We are passive.||We are aggressive.|
|We accept the world as it is.||We try to change it according to our blueprint.|
|We like to contemplate.||We like to act.|
|We live in peace with nature.||We try to impose our will on nature.|
|Religion is our first love.||Technology is our passion.|
|We delight to think about the meaning of life.||We delight in physics.|
|We believe in freedom of silence.||We believe in freedom of speech.|
|We lapse in meditation||We strive for articulation.|
|We marry first, then love.||We love first, then marry.|
|Our marriage is the beginning of a love affair.||Our marriage is a happy end of a romance.|
|Love is an indissoluble bond.||Love is a contract.|
|Our love is mute.||Our love is vocal.|
|We try to conceal it from the world.||We delight in showing it to others.|
|Self-denial is a secret to our survival.||Self-assertiveness is the key to our success.|
|We are taught from the cradle to want less and less.||We are urged every day to want more and more.|
|We glorify austerity and renunciation.||We emphasize gracious living and enjoyment.|
|Poverty is to us a badge of spiritual elevation.||Poverty is to us a sign of degredation.|
|In the sunset years of life, we renounce the world and prepare for the hereafter.||We retire to enjoy the fruits of our labor.|
Dr. Douglas K. Chung, Professor at Grand Valley State University School of Social Work, Grand Rapids, Michigan (1992) included the following comparison to enhance understanding of cultural shock that Indochinese refugees experience in Western countries. A group of Vietnamese-American immigrants compiled this list of cultural differences shortly after arriving in the United States when they were living between two worlds.
Webliography and Bibliography
Chung, Douglas K. 1992.
Filed in AFlicktion, Ethnography, History, hospitality, memory, Power and everyday life, slow world, social cohesion
Tags: courage, culture shock, East-West, ethical topography of self and the Other, genocide, information-knowledge-wisdom, killing fields, Memory Work, social cohesion