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Someone must have been very good this year.

Wall Street’s biggest banks, rebounding after a government bailout, are set to complete their best two years in investment banking and trading, buoyed by 2010 results likely to be the second-highest ever.

The five largest U.S. firms by investment-banking and trading revenue -- Goldman Sachs Group, JPMorgan Chase, Bank of America Corp, Citigroup and Morgan Stanley -- will likely have a better fourth quarter than the previous two periods [...]

The surge has come after the five banks took a combined $135 billion from the Treasury Department’s Troubled Asset Relief Program and borrowed billions more from the Federal Reserve’s emergency-lending facilities in late 2008 and early 2009 [...]  Since then, the firms have benefited from low interest rates and the Fed’s purchases of fixed-income securities.

"This is a once-in-a-lifetime opportunity for most of these banks, and I think they’ve recognized it as that," said Charles Geisst, a finance professor at Manhattan College [...]  "The profits they’re making now will allow them to replenish their capital and take care of the other things they need to do."

Ca-Ching!

[Link to intro quote]
Wall Street Sees Record Revenue in ’09-10 Recovery From Bailout
By Michael J. Moore, Bloomberg - Dec 12, 2010


Yes, 2010 was a near record year for Wall Street profits.  They are recovering quite well -- Thank you very much Americans.


Yet all was not "sugar and light" for them this year ... they did see the "hammer come down" in terms of New Legislation from congress afterall ...

They have to totally re-vamp the way they Do Business, right? ... what's that? ... They really don't?

Uh oh!


U.S. Congress Passes Wall Street Regulation Bill
Bloomberg, Businessweek.com --July 15, 2010

Measured against Wall Street excesses that nearly toppled the global financial system two years ago, some analysts saw the bill as tinkering at the edges of banking practices rather than forcing fundamental changes to the industry.

"There is little in this legislation that will fundamentally change the way that Wall Street does business," said Dean Baker, co-director of the Center for Economic and Policy Research in Washington. "There is probably no economist who believes that this bill will end the risks of too-big-to-fail financial institutions. The six largest banks will still enjoy the enormous implicit subsidy that results from the expectation that the federal government will bail them out in the event of a crisis."
[...]

Most Senate Republicans voted against the measure, saying it doesn’t go far enough to prevent future taxpayer-funded bailouts of Wall Street firms and creates an unnecessary new bureaucracy in the consumer bureau.


Wow when you got Gophers saying that the 'Clamp Down' on Wall Street doesn't go far enough ... it kind of makes you wonder.

Maybe Wall Street made out like Bandits again, with this watered-down legislation?

... especially when you consider -- What MIGHT have happened to them ...


What SHOULD HAVE happened -- if there were any {Economic} Justice in the world.


My One-Man Deficit Commission Challenges Obama's Blue Ribbon Cat Food Commission Chairs
Miles Mogulescu, huffingtonpost.com -- Dec 5, 2010

[Point] 3. A Financial Transactions Tax.

The idea is simple. If you charge a very small tax on a very large volume of transactions, you can raise a ton of revenue with minimal impact on those transactions. As economist Dean Baker has pointed out, a 0.25% tax on buying or selling a stock would be $25 on a $10,000 stock purchase, which would make little difference to someone intending to hold the stock for any period of time.  [...]

Yet a modest tax, too small for most investors to even notice, could add $100 billion per year--$1 Trillion over 10 years--to Federal revenues.  [with a 'T' dollars]

It would have the added advantage of discouraging the kinds of speculation that helped cause the financial meltdown. Speculators who buy and sell by the minute and hour to earn pennies per transaction multiple times would be discouraged. Complex derivatives would be taxed numerous times in the chain of transactions, reducing the amount of profit from creating so much complexity that almost no one can understand or regulate the transactions.


Sounds simple enough -- Tax the churning, frothing, creative/destructive-finance machine, where it lives -- at the Transaction level.   Make Wall Street gamblers think twice, before placing that next Million Dollar Wager.

It could bring some Sanity and Stability to the Markets.  It could turn the Stock Markets BACK into something that would Help the Economy, instead of simply Exploit it, for short-term profits.

Who could be against such an idea ?   Oh I dunno ... How many Lobbyists are there on K-Street ?


Taxing Wall Street to Fund Jobs and Recovery on Main Street
by Tony Wikrent, economicpopulist.org, 12/15/2009

Support is now growing for such a Financial Transactions Tax (FTT), to help fund jobs and economic recovery programs in the next few years, and to help reduce fiscal deficits in the outlying years.
[...]

Just last week [Dec 2009] Congressman Peter DeFazio (D-OR) introduced an FTT bill in the U.S. House of Representatives that he and 21 co-sponsors call the "Let Wall Street Pay for the Restoration of Main Street Act".

At a press conference announcing the bill, Rep. DeFazio was joined by Senator Tom Harkin (D-IA) who said he planned to introduce the legislation in the Senate.

The Oregonian quoted DeFazio at the news conference:

"The American taxpayers bailed out Wall Street during a crisis brought on by reckless speculation in the financial markets," DeFazio said. "This legislation will force Wall Street to do their part and put people displaced by that crisis back to work."

[...]

Last week, as President Obama convened a White House jobs forum that included many supporters of an FTT, including [Dean] Baker and Paul Krugman, Baker's CEPR [Center for Economic and Policy Research] announced that more than 200 prominent economists had signed a letter (pdf) supporting a financial transactions tax.

   

December 3, 2009

   An Open Letter from Economists in Support of Financial Transaction Taxes

   To Whom It May Concern:

   A modest set of financial transaction taxes could raise a substantial amount of needed revenue while having little impact on trades that have a positive economic impact.

   The cost of trading financial assets has plummeted over the last three decades as a result of computerization. This has led to an enormous explosion in trading volume, with most trades having little economic or social value and redistributing disproportionate resources to the financial sector. A set of modest financial transactions taxes, which would just raise trading costs back to the level of two or three decades ago, would have very limited impact on trades that have real economic value.
[...]

Apparently no one is all that "concerned" ...

U.S. Treasury Secretary Timothy Geithner on Saturday firmly opposed a proposal by UK Prime Minister Gordon Brown for a global tax on financial transactions. "That’s not something we’re prepared to support," Geithner said, speaking after meetings of Group of 20 finance ministers [...]


Of course that was in 2009, when the economy was still 'teetering on brink' ... surely Govt Watchdogs have had enough time, to figure out how to reign in the Wild West atmosphere on Wall Street, since then, without shutting them down, eh?

Don't bet on it.  Their serious actions, this year, seem more like 'coddling', instead of 'reigning in' to me ...


Debate reopens over equity trades
By Telis Demos, FinancialTimes, in New York -- Dec 20, 2010

The SEC and the regulated exchanges like NYSE, Nasdaq and BATS have since launched test programmes to ban stub quotes, have added market-wide "circuit breakers" to slow down gyrations by halting trading in many stocks and exchange-traded funds when prices jump, and have limited direct access to markets by high-speed traders.

Yet the focus on the flash crash has generated concerns that the bigger debate about modern-day trading is not being tackled. At a recent Senate hearing, Mary Schapiro, SEC chair, along with Gary Gensler, head of the Commodity Futures Trading Commission, which regulates futures, were scolded by senators for taking several months to put out a post-crash report, and not yet formulating a broad plan to prevent future crashes.

"Our regulators are riding the equivalent of mopeds ... chasing traders whose cars are going 100 miles per hour,"

said Carl Levin, US senator from Michigan, at the hearing.

[Diarist note:  that reminds me of something Rachel said, about the pace of Regulators.]


In response, Ms Schapiro said that her agency was struggling with a crushing workload, including writing rules created by the Dodd-Frank financial regulatory reform bill, and addressing a spate of insider trading cases. She said 400 additional staff were needed.


Sounds like one serious JOBS Program is needed there, eh folks?

Are there any Wall Street Sheriffs out there, who would like to do their Civic Duty, to reign in the casino chaos?  To make Wall Street, begin to pay their fair share again, to help the Real Economy grow?

Bueller, Bueller, Anybody?


I guess not.    Check! another one up in the column, for a very GREEN Christmas for Wall Street ... and many happy returns, going forward.


So in addition to toothless, nearly non-existence, Mo-pedaling Oversight --

What else, did Wall Street get for Christmas?  

What's this ... a CUT in Bonuses ... Why it must be a Xmas Miracle!  (for us Main Streeters.)


Wall Street Sees Record Revenue in ’09-10 Recovery From Bailout
By Michael J. Moore, Bloomberg - Dec 12, 2010

Cutting Bonuses

Those challenges may lead banks to cut bonuses as they seek to reduce costs and boost profitability amid lagging stock prices. Overall pay for investment-banking and trading employees at Wall Street firms will be down 22 percent to 28 percent from 2009 [...]

Goldman Sachs’s compensation expenses in the first nine months were 21 percent less than a year earlier, while the pay pools at JPMorgan’s and Morgan Stanley’s investment banks were down 10 percent and 8 percent. Morgan Stanley has told some employees to expect investment-banking bonuses to decline 10 percent to 30 percent [...]

Woo hoo!  Let them share in the pain they created.


What's that?  ...  A 10% Cut in Xmas Trimmings, is not all that much when you consider, what they were expecting to get in the first place:

It's a Wall Street bonus bonanza
By Greg Farrell, USA TODAY -- 12/20/2006

Wall Street firms are expected to pay out a record $23.9 billion in bonuses this year [2006]  
[...] the average bonus is expected to top $137,000.

Year    Total [Bonus]    Average [Bonus]
2006    $23.9 Billion   $137,580
2005    $20.5 Billion    $119,390
2004    $18.6 Billion    $113,450
2003    $15.8 Billion    $99,930

[...]
Source: N.Y. State Comptroller; USA TODAY research


So in other words, the Average Wall Streeter makes more in their ANNUAL Xmas Bonus Checks than the Average American Worker makes in about 3 years of monotonous toil.


SO Boo-F'n-Hoo for Wall Street -- and their 10 to 30% cuts in Bonuses this year -- What will they DO?   How will they ever survive?

[70% of $140,000 is still a cool $98,000 -- not too shabby to find in the Stocking.]


Oh wait, turns out those Bonus Cuts aren't as bad as they seem -- since they are AVERAGES ... and there are fewer folks on Wall Street too, for them to divvy up the Booty to ...

Banning Big Wall Street Bonus Favored by 70% of Americans in National Poll
By Catherine Dodge - Dec 12, 2010

While the cash bonus pool for 2010 will probably be smaller, the average bonus may be bigger because after job losses the money will be divided among fewer employees, the report said.

The fewer Wizards on Wall Street, the more spoils of {class} war to parcel out to the Wizards' Apprentices, I guess ...  those still standing.


Say WHAT does Wall Street actually DO to earn all that Green ?

well that's a topic for another dairy ... but here a little preview:


Robot Traders of the NYSE
60 Minutes, Overtime Staff -- Oct 10, 2010

http://www.cbsnews.com/...

Steve Kroft:  I don't think I've ever run into to a story, where so many people involved with something so big, don't want to talk to you -- won't let you in.  Won't give you somebody to interview.  Won't give you a statement.

Right now, the thing with High Frequency Trading -- this is sort an extension of the idea, or belief, on the part of some people that they can Master Markets, using Mathematics -- using Computers, to calculate the odds.  

That is what happened with Derivatives, what happened with Credit Default Swaps, and to a certain extent that is what is going on right now with High Frequency Trading.


SOOOO in other words:  THEY actually DO ... VERY Little.

Very Little to Help the Economy, that their bloodsucking, money-grubbing, GREEN-Meanie Bonus Checks, are quite dependent on.  Thank you very much.


The Casino Economy would cease to function, without your unwitting cooperation.

SOOO Merry Xmas, America!  ... from your 'pals' on Wall Street.  


They trust you will keep looking the other way, workers and non-workers alike.  Afterall, that does seem to be the {New} American Way.


And most of all Americans, they trust that with the new Pro-Business Congress, you just gave them this Holiday Season [lol who saw that one coming] that

"No One will be able to say NO to Wall Street demands, again, for a very, very, long time ..."


Isn't Multi-National Capitalism wonderful?

Originally posted to Digging up those Facts ... for over 8 years. on Sat Dec 25, 2010 at 11:07 AM PST.

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Comment Preferences

  •  I'm an Obama supporter on most scores (10+ / 0-)

    but his administration's collusion with Wall St. in opposition to all campaign promises is impossible to understand or accept. The refusal to create real reform just sets the stage for another disaster. Is there some kind of Ivy League Brotherhood at work here? Or the belief that market manipulation is all that America has going for it anymore?  

    I never liked you and I always will.

    by Ray Blake on Sat Dec 25, 2010 at 11:19:31 AM PST

    •  thank you Ray Blake (7+ / 0-)

      for standing on principle.

      Wall Street will destroy this country, if we let them.


      So WHY in the world, do we keep letting them!?


      Where's the Note?    -- SEIU

      by jamess on Sat Dec 25, 2010 at 11:23:07 AM PST

      [ Parent ]

    •  Same here (5+ / 0-)

      Yet we read things like this:

      "It's 11th dimension chess"
      "He is setting the Republicans up for fail"
      "Change takes time!  Stop complaining"

      Uh, ok.  Sure change takes time.  The collateral damage in the meantime is untenable (for me)

      The other two excuses - whatever.  The President is a smart guy.  I'm not buying those.

      I'd rather die than give you control ~ Trent Reznor

      by JustJennifer on Sat Dec 25, 2010 at 11:32:04 AM PST

      [ Parent ]

      •  seemed more like (2+ / 0-)
        Recommended by:
        RunawayRose, greengemini

        brute force checkers to me.
        and some luck too.


        Change takes hard word,
        and the will and determination to actually change,
        to actually make things Better.

        to right the wrongs.


        I give Obama credit, I think he means well,

        I mostly think, he's been poorly served
        by the checkers-player advisers, he's surrounded himself with.

        NOT everything, should be boiled down to a pragmatic Political decision,
        sometimes one needs to stand on principle, damn it.

        that is what Leadership is made of.
        imo


        thx for the comments JustJennifer


        Where's the Note?    -- SEIU

        by jamess on Sat Dec 25, 2010 at 11:52:29 AM PST

        [ Parent ]

    •  Yes, they all subscribe (4+ / 0-)
      Recommended by:
      tmo, Lefty Coaster, jamess, greengemini

      to the same Neo Liberal, trickle down crap.

      ~War is Peace~Freedom is Slavery~Ignorance is Strength~ George Orwell "1984"

      by Kristina40 on Sat Dec 25, 2010 at 11:33:54 AM PST

      [ Parent ]

    •  because you are simply wrong (1+ / 0-)
      Recommended by:
      Lefty Coaster

      with this.  

      refusal to create real reform

      In an interview with The Washington Post, Rep. Spencer Bachus, R-Ala. -- who will chair the House Financial Services Committee -- said the new GOP majority will examine the Dodd-Frank Wall Street Reform and Consumer Protection Act "provision by provision" and consider changes in the sweeping financial reform law named for its two primary sponsors, Sen. Chris Dodd, D-Conn., and Rep. Barney Frank, D-Mass.

      http://www.upi.com/...

      We have a modern day Glass-Steagall (now called the Volcker Rule), we have liability for ratings agencies, we will have an open exchange for Credit Default Swaps, we have Liquidation Authority for TBTF now, we have new capital standards, etc.

      If it weren't real reform the GOP wouldn't have their knives out. *

      * = as always nothing will satisfy the "nationalize the banks" crowd.

      "The way to see by faith is to shut the eye of reason." - Thomas Paine

      by shrike on Sat Dec 25, 2010 at 11:48:15 AM PST

      [ Parent ]

      •  Chris Hedges writes in his new book (2+ / 0-)
        Recommended by:
        shrike, jamess

        The Death of the Liberal Class:  

        "The liberal class assumed that by working with corporate power, it could mitigate the worst excesses of capitalism and environmental degradation. It did not grasp, perhaps because liberals to not read enough Marx, the revolutionary and self-destructive nature of unfettered capitalism."
        @

        Demand Filibuster Reform call your Senators at (202) 224-3121 -AND KEEP CALLING

        by Lefty Coaster on Sat Dec 25, 2010 at 12:06:17 PM PST

        [ Parent ]

      •  not so... (4+ / 0-)

        at SIFMA 2010, it became plain that the Volcker Rule was going to be seriously undermined, with the blessings of Dodd, Mary Shapiro and Shelia Bair, all in attendence there. Nor would the rule have ever worked, as we witnessed in the failure of Northern Rock. It's subsidiary, Granite Master Issuer plc went south and dragged the whole edifice with it. The Bank of England finally had to come in and take Northern Rock over.

        Entities like Granite Master Issuer plc are allowed under the Volcker Rule.

        22 December 2010: Democrats have one good day in two years.

        by papicek on Sat Dec 25, 2010 at 12:35:05 PM PST

        [ Parent ]

      •  The Volcker rule was watered down so banks (2+ / 0-)
        Recommended by:
        NoMoreLies, jamess

        could invest in hedge funds, Treasurys, private equity funds and gov-backed bonds (Fannie Mae/Freddie Mac) in order to accommodate Scott Brown. So much for restoring the Glass-Steagall firewall against proprietary trading! Volcker himself has disavowed what was actually passed. The Republicans may be upset about Obama Reform, simply because it happened under Obama, but the banks are unconcerned.

        I never liked you and I always will.

        by Ray Blake on Sat Dec 25, 2010 at 05:32:41 PM PST

        [ Parent ]

    •  reassuring the markets... (4+ / 0-)

      to help stimulate business is the advice he's being given and the road he's travelling. As far as that goes, it has a history of working, Reagan certainly made hay doing so.

      Which does nothing to address the real weaknesses which caused the financial market meltdown of 2008, nor our weaknesses in international trade and finance. Dodd-Frank didn't go far enough to do so either. Those still hang over us.

      22 December 2010: Democrats have one good day in two years.

      by papicek on Sat Dec 25, 2010 at 12:29:15 PM PST

      [ Parent ]

      •  Wall Street uses Financialization to push Main St (4+ / 0-)
        Recommended by:
        NoMoreLies, jamess, papicek, Ray Blake

        and its real economy aside economically and politically.

        Demand Filibuster Reform call your Senators at (202) 224-3121 -AND KEEP CALLING

        by Lefty Coaster on Sat Dec 25, 2010 at 02:29:16 PM PST

        [ Parent ]

        •  history lesson... (1+ / 0-)
          Recommended by:
          jamess

          during the turmoil revolving around the creation of a national bank, and again during the strife between Wall Street and the vast majority of Americans who were farmers, Wall Street kicked ass.

          So those jobs aren't coming back, and while all other industries are being shipped overseas there is one, and only one, industry which we will finance, subsidize and cater to: armaments.

          That's about the size of things.

          22 December 2010: Democrats have one good day in two years.

          by papicek on Sun Dec 26, 2010 at 05:22:56 AM PST

          [ Parent ]

  •  They have my 401k and 403b... (6+ / 0-)

    Since they ripped off my home equity and are in the process of stealing my SS and pension, I need the stock market to do good.

    What we need is a Democrat in the White House.

    by dkmich on Sat Dec 25, 2010 at 11:40:22 AM PST

    •  when will the People (4+ / 0-)
      Recommended by:
      RunawayRose, dkmich, papicek, greengemini

      be able to afford our own Lobbyists?

      I hear ya dkmich,
      my life's savings are on the line too.


      And I'm trusting Wall Street-types to keep them safe,

      Oy!  I don't sleep well, most nites.

      with all those Visions of cut-rate SS Checks,
      dancing in my head, lol

      The General Fund OWES Social Security -- NOT the other way around
      by jamess -- Dec 23, 2010


      thank you for your support, dkmich
      I truly appreciate it,
      being a one-time Michigander, myself.

      where did all those Greener Pastures go?


      Where's the Note?    -- SEIU

      by jamess on Sat Dec 25, 2010 at 11:59:34 AM PST

      [ Parent ]

      •  I figure it is where rich people make their money (2+ / 0-)
        Recommended by:
        jamess, papicek

        so if I don't take it out when its down, I ought to be ok... maybe, sort of, kind of..

        What we need is a Democrat in the White House.

        by dkmich on Sat Dec 25, 2010 at 12:08:20 PM PST

        [ Parent ]

      •  We have a few Lobbyists at bat for us (2+ / 0-)
        Recommended by:
        RunawayRose, jamess

        The trouble is these public policy advocates are badly out numbered and more importantly out funded.

        Just look at what happened after the unprecedented storm of popular outrage against the TARP bailouts in late September of 2008. That tidal wave of public opposition only made Congress hesitate for a brief period before capitulating to Wall Street and its shills in the Bush Administration. Paulson used the Dow plunging of 778 points in one day to stampede a panicked Congress into defying the public's overwhelming and emphatic opposition, finally capitulating with few reservations. Few Americans remember that Wall Street reacted to the passage of the TARP bailout by the Dow dropping another 157 points.  

        Demand Filibuster Reform call your Senators at (202) 224-3121 -AND KEEP CALLING

        by Lefty Coaster on Sat Dec 25, 2010 at 12:41:57 PM PST

        [ Parent ]

  •  This is result of zero accountability for elites (6+ / 0-)

    We need an 80% tax on all bonuses over $10,000.

    Demand Filibuster Reform call your Senators at (202) 224-3121 -AND KEEP CALLING

    by Lefty Coaster on Sat Dec 25, 2010 at 11:45:42 AM PST

  •  Well done, as usual. At the same time (8+ / 0-)

    Wall Street goons who fleeced our 401Ks and stole our homes are taking home bonuses that are larger than the average American's salary, this civil servant (diary on rec list) must justify his pension to a public that thinks cops and fire fighters and teachers are the problem. Go figure. Our Sunday paper had a huge section on all the money the state "wastes" on government pensions - sheesh. About healthcare CEOs? Nada.

    stay together / learn the flowers / go light - Gary Snyder

    by Mother Mags on Sat Dec 25, 2010 at 12:22:50 PM PST

  •  Great diary James! (3+ / 0-)
    Recommended by:
    RunawayRose, Lefty Coaster, jamess

    Happy Holidays to you and your family as well.

    Peace.

    Bob Sloan: INSOURCING Slavery in the land of the free

    by cosbo on Sat Dec 25, 2010 at 01:12:28 PM PST

  •  back few years read that (5+ / 0-)

    [ college math grads number one hiring spot is the NSA and number two Wall Street ]

    http://en.wikipedia.org/...

    Algorithmic and high frequency trading were both implicated by regulators in the May 6, 2010 Flash Crash.

    http://www.nytimes.com/...

    Powerful computers, some housed right next to the machines that drive marketplaces like the New York Stock Exchange, enable high-frequency traders to transmit millions of orders at lightning speed and, their detractors contend, reap billions at everyone else’s expense.

    These systems are so fast they can outsmart or outrun other investors, humans and computers alike. And after growing in the shadows for years, they are generating lots of talk.

    Nearly everyone on Wall Street is wondering how hedge funds and large banks like Goldman Sachs are making so much money so soon after the financial system nearly collapsed. High-frequency trading is one answer.

    PCs have been unable to compete with Wall Street’s computers. Powerful algorithms — "algos," in industry parlance — execute millions of orders a second and scan dozens of public and private marketplaces simultaneously. They can spot trends before other investors can blink, changing orders and strategies within milliseconds.

    Sen. Barbara Mikulski, D-MD regarding next March 2011: "Then I think [GOP/TEA] they'll start with women and children. And I will be combat ready."

    by anyname on Sat Dec 25, 2010 at 03:35:26 PM PST

    •  hey! (4+ / 0-)

      you're stealing my thunder,
      for my "next diary",
      lol

      thanks for the info and links anyname.

      the more I learn about HFT
      the more it reminds me of the Battle of the Machines,
      from the T2 series.


      I studied the career of "quants" for a while,
      the more I learned the more spooky it was.

      The algos, and their quant creators,
      are more like parasites,
      than the engines of an economy.

      they add little to the equation,
      besides draining away capital from innovation, etc.


      Where's the Note?    -- SEIU

      by jamess on Sat Dec 25, 2010 at 03:51:11 PM PST

      [ Parent ]

      •  for long time (1+ / 0-)
        Recommended by:
        jamess

        it seems to me that 'certain' Wall Street camps had improved special or otherwise 'faster' fiber optics .... da so obvious faster computers programs; does Wall Street have proto type quantum computers yet?

        Sen. Barbara Mikulski, D-MD regarding next March 2011: "Then I think [GOP/TEA] they'll start with women and children. And I will be combat ready."

        by anyname on Sat Dec 25, 2010 at 07:43:40 PM PST

        [ Parent ]

      •  Aren't they just skimming...when the mob did (1+ / 0-)
        Recommended by:
        jamess

        this in Vegas, they got thrown in jail.

        "New TSA slogan: can't see London, can't see France, unless we see your underpants."

        by lakehillsliberal on Sun Dec 26, 2010 at 12:26:04 AM PST

        [ Parent ]

      •  sidebar: reducing resistance (1+ / 0-)
        Recommended by:
        RunawayRose

        Techniques for reducing AC resistance

        For low to medium frequencies, conductors can be divided into stranded wires, each insulated from one other, and the relative positions of individual strands specially arranged within the conductor bundle. Wire constructed using this technique is called Litz wire. This measure helps to partially mitigate skin effect by forcing more equal current throughout the total cross section of the stranded conductors. Litz wire is used for making high-Q inductors, reducing losses in flexible conductors carrying very high currents at lower frequencies, and in the windings of devices carrying higher radio frequency current (up to hundreds of kilohertz), such as switch-mode power supplies and radio frequency transformers.

        Techniques for reducing radiation loss

        As written above, an alternating current is made of electric charge under periodic acceleration, which causes radiation of electromagnetic waves. Energy that is radiated is lost. Depending on the frequency, different techniques are used to minimize the loss due to radiation.
        [edit] Twisted pairs

        At frequencies up to about 1 GHz, pairs of wires are twisted together in a cable, forming a twisted pair. This reduces losses from electromagnetic radiation and inductive coupling. A twisted pair must be used with a balanced signalling system, so that the two wires carry equal but opposite currents. Each wire in a twisted pair radiates a signal, but it is effectively cancelled by radiation from the other wire, resulting in almost no radiation loss.

        Coaxial cables

        Coaxial cables are commonly used at audio frequencies and above for convenience. A coaxial cable has a conductive wire inside a conductive tube, separated by a dielectric layer. The current flowing on the inner conductor is equal and opposite to the current flowing on the inner surface of the tube. The electromagnetic field is thus completely contained within the tube, and (ideally) no energy is lost to radiation or coupling outside the tube. Coaxial cables have acceptably small losses for frequencies up to about 5 GHz. For microwave frequencies greater than 5 GHz, the losses (due mainly to the electrical resistance of the central conductor) become too large, making waveguides a more efficient medium for transmitting energy. Coaxial cables with an air rather than solid dielectric are preferred as they transmit power with lower losses.

        Waveguides

        Waveguides are similar to coax cables, as both consist of tubes, with the biggest difference being that the waveguide has no inner conductor. Waveguides can have any arbitrary cross section, but rectangular cross sections are the most common. Because waveguides do not have an inner conductor to carry a return current, waveguides cannot deliver energy by means of an electric current, but rather by means of a guided electromagnetic field. Although surface currents do flow on the inner walls of the waveguides, those surface currents do not carry power. Power is carried by the guided electromagnetic fields. The surface currents are set up by the guided electromagnetic fields and have the effect of keeping the fields inside the waveguide and preventing leakage of the fields to the space outside the waveguide.

        Waveguides have dimensions comparable to the wavelength of the alternating current to be transmitted, so they are only feasible at microwave frequencies. In addition to this mechanical feasibility, electrical resistance of the non-ideal metals forming the walls of the waveguide cause dissipation of power (surface currents flowing on lossy conductors dissipate power). At higher frequencies, the power lost to this dissipation becomes unacceptably large.

        Fiber optics

        At frequencies greater than 200 GHz, waveguide dimensions become impractically small, and the ohmic losses in the waveguide walls become large. Instead, fiber optics, which are a form of dielectric waveguides, can be used. For such frequencies, the concepts of voltages and currents are no longer used.

        http://en.wikipedia.org/...

        Sen. Barbara Mikulski, D-MD regarding next March 2011: "Then I think [GOP/TEA] they'll start with women and children. And I will be combat ready."

        by anyname on Sun Dec 26, 2010 at 04:27:21 AM PST

        [ Parent ]

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