Rick Bookstaber — Can We have an ETF Meltdown?

Rick Bookstaber explains how the EFT market in illiquid assets like high yield bonds creates an illusion of liquidity that is not there.

Rick Bookstaber
Can We have an ETF Meltdown?
Rick Bookstaber | Chief Risk Officer for the $110 billion pension and endowment of the University of California

Ambrose Evans-Pritchard — World faces wave of epic debt defaults, fears central bank veteran William White

There is no easy way out of this tangle. But Mr White said it would be a good start for governments to stop depending on central banks to do their dirty work. They should return to fiscal primacy - call it Keynesian, if you wish - and launch an investment blitz on infrastructure that pays for itself through higher growth.

"It was always dangerous to rely on central banks to sort out a solvency problem when all they can do is tackle liquidity problems. It is a recipe for disorder, and now we are hitting the limit," he said.…

Second leg down?

What happens when China is forced to drop its peg, like Russia?

The Telegraph
World faces wave of epic debt defaults, fears central bank veteran
Ambrose Evans-Pritchard

Stephen G. Cecchetti and Kermit L. Schoenholtz — A Primer on Central Bank Independence

Central bank independence is controversial. It requires the delegation of powerful authority to a group of unelected officials. In a democracy, this anomaly naturally raises questions of legitimacy. It also raises fears of the concentration of power in the hands of a select few.…

Good starting point. They acknowledge the issue is a tradeoff between democracy and technocracy, and price stability and growth, liquidity and solvency.

Money & Banking
A Primer on Central Bank Independence

Stephen G. Cecchetti, Professor of International Economics at the Brandeis International Business School, and Kermit L. Schoenholtz is Professor of Management Practice in the Department of Economics of New York University’s Leonard N. Stern School of Business
ht Mark Thoma at Economist's View

IRD — A Liquidity Crisis Hit The Banking System In September [and more]

Without a doubt, the graphs above are telling us that something “broke” in the banking system which necessitated the biggest injection of Treasury collateral in history into the global banking system by the Fed.

IRD
A Liquidity Crisis Hit The Banking System In September

ht The Automatic Earth

Also from The Automatic Earth

Bank Of England Warns Financial Institutions Over Commodities Exposure (Guardian)

Also

Glencore slashes zinc production and jobs

Former IMF chief economist backs 'people's QE'

TASS — Bank of Russia ready to provide systemically important banks with special loan facilities

The Bank of Russia is ready to provide ten systemically important banks with special loan facilities to meet the liquidity coverage ratio (LCR), the press service of the regulator told TASS on Friday.

"The Bank of Russia may provide systemically important banks and credit institutions in their groups with irrevocable loan facilities secured by papers from the Lombard List of the Bank of Russia, gold and non-marketable assets for the purposes of covering the shortage of highly liquid assets used in LCR calculations," the Central Bank said.…

Taking a cue from the Fed.

TASS
Bank of Russia ready to provide systemically important banks with special loan facilities

Peter Dorman — Jens Weidmann on Central Banks as Lenders of Last Resort (Not)

Frankly, I think Weidmann should sue the reporter who put these words into his mouth—obviously a crude attempt to make him sound like a yahoo who doesn’t know the first thing about his line of work.

Department of "WTF?"

Econospeak
Jens Weidmann on Central Banks as Lenders of Last Resort (Not)

Peter Dorman | Professor of Political Economy, The Evergreen State College

Jens Weidmann, boss of the Bundesbank, wants the opposite of debt relief for Greece. Really.

Jens Weidmann, boss of the Bundesbank, wants to restrict the power of the Greek central bank to provide Emergency Liquidity Assitance (ELA) to the Greek banks as he is afraid that Greek banks will use these reserves to purchase short-term government debt....

True colors. The black flag of piracy. Restrict liquidity to force insolvency. This is the opposite of what modern central banking is designed for.

Real-World Economics Review Blog
Jens Weidmann, boss of the Bundesbank, wants the opposite of debt relief for Greece. Really.
Merijn Knibbe

Merijn Knibbe — Greece, cognitive dissonance edition

There are real problems and pseudo-problems created by a false understanding. All economic problems resulting from either lack of money or fiscal discipline in areas were the monetary authority is sovereign in the currency, as the ECB with respect to the euro is in the EZ, are pseudo-problems that would simply disappear if a correct understanding were implemented.

This is not to say that Greece may not have real economic problems but they are distinct from the pseudo-problem that is standing in the way of Greece confronting the real issues.

Real-World Economics Review Blog
Greece, cognitive dissonance edition
Merijn Knibbe

Neil Wilson — Greece and the Art of Liquidity

The war of words with Greece is hotting up. The spin is so great I'm surprised nobody has been sick yet. It's like a fairground waltzer gone mad. 

There have been at least six arbitrary deadlines that have come and gone all of which individually signalled 'The End' for Greece and all of which had no effect whatsoever. 

Unsurprisingly. 

Because it is all political rhetoric attempting to frighten the Greek people who, as usual for a people under threat, have doubled down and backed their electedgovernment against the bunch of unelected bureaucrats who have got rather too big for their boots. 

Let's look at the reality of the situation. The Eurozone is, at its root, a three layered hierarchy of liability pegs that make the liabilities of all the members the same effective value - which we call the Euro.…

3spoken
Greece and the Art of Liquidity
Neil Wilson

Also

Bond Economics
Capital Controls And Greek Euros
Brian Romanchuk

Complaining About Your Own Clerks Is A Symptom Of A Failed Aggregate.

   (Commentary posted by Roger Erickson)

I sympathize, but that complaint is so overly simplistic that it hurts more than it helps.

It is sellers who offer credit to buyers who pay over time, and with diverse substitutions.

That's how we create the increasingly complex transaction chains called an aggregate economy. 

For the most part, banks just denominate those credits & debits, although they often act as publicly "licensed" middle-men or market-makers who manage distributed liquidity on behalf of the public at large. 

Denominating distributed credit & dynamic liquidity is a necessary but not sufficient part of continuously increasing our cultural adaptive rate. Don't even think of throwing that baby out with the bathwater.

Bankers are accountants for the electorate. They are simply clerks who manage our books for us. It's up to US to regulate their behavior and pay.

An aggregate complaining about it's clerks is exactly like bad parents complaining about the behavior of their own kids.

Face it. If our aggregate is dissatisfied with their own servants, both the problem and solution are visible in the aggregate mirror. So just look closer, and help regulate this aggregate's own behavior.

Complaining about YOUR OWN CLERKS is a symptom of a failed aggregate. The solution is always to examine your group's own state of distributed organization, and come up with a way to coordinate on an even larger scale.

Look no further than your own mirror. Continuously finding new methods, for continuously scaling up all the expanding features of an adaptive culture ... well, that task is up to us, not anyone else.

When you look in your mirror, do you see only the static components and static values? That's just what was already produced yesterday.

Look closer and longer and, upon reflection, discern the return on coordination and the many dynamic values, already present, plus those which are always newly emerging.

Once you can recognize dynamic value, it should be obvious how to re-regulate bankster behavior and more optimally manage the behavior our lowly bank clerks. Just start acting like a co-owner ... of democracy. If YOU don't act like an owner, don't expect your lowly clerks to not act like they own you.

Yi Wen and Maria A. Arias — What Does Money Velocity Tell Us about Low Inflation in the U.S.?

Holy moly. Still thinking in terms of Friedman's quantity theory. So they confuse the causality.

So why did the monetary base increase not cause a proportionate increase in either the general price level or GDP? The answer lies in the private sector’s dramatic increase in their willingness to hoard money instead of spend it. Such an unprecedented increase in money demand has slowed down the velocity of money, as the figure below shows.

And why then would people suddenly decide to hoard money instead of spend it? A possible answer lies in the combination of two issues: 

A glooming economy after the financial crisis
The dramatic decrease in interest rates that has forced investors to readjust their portfolios toward liquid money and away from interest-bearing assets such as government bonds. 

In this regard, the unconventional monetary policy has reinforced the recession by stimulating the private sector’s money demand through pursuing an excessively low interest rate policy (i.e., the zero-interest rate policy). 

The increase in the monetary base did not cause people to hoard money and thereby reduce velocity, nor did historically low interest rates. Increased liquidity preference in the case of uncertainty and the need to deleverage, together with tighter lending standards (locking the barn door after the horses have escaped), resulted in higher than usual saving desire relative to spending desire for consumption, and also investment to some degree. Decreased domestic demand also sent a signal to firms not to invest in expanding production domestically. 

A question remains why firms did not invest in capital expansion? Actually, many did, but in FDI where prospects appear brighter than in the US. A significant of increasing corporate earnings also went to either corporate savings or stock buybacks to drive up the share price rather than to increasing dividends, whence it might be spent domestically.

Low interest rates and QE deprived the domestic economic of demand resulting from the interest that would have been paid without QE and reduced the amount than was paid at the low rates relative to more normal rates. But it's a stretch to say that low rates were the cause of money hoarding. In fact, the low rates drove prices of riskier assets higher than they would have been otherwise, as the Fed itself admits and said was a policy objective to increase the wealth effect in addition to stabilizing the housing market by keeping mortgage rates low than they would otherwise be.

The authors conclude:

This happened because the nominal interest rate on short-term bonds has declined essentially to zero, and, in this case, the best form of risk-free liquid asset is no longer the short-term government bonds, but money.

The authors are obviously neither wealthy nor in business or they would know that when large sums are involved even a very small return is significant. When there is a choice between the two alternative of essentially the same risk and one pays some interest at a similar degree of liquidity, however small, and the other does not, then the former is the rational choice and will be chosen by rational agents.

The fact is that the Fed chose to pay interest on excess reserves when it initiated QE in order to maintain control of the interest rate and set it slightly above zero.

FRBSL — On the Economy

What Does Money Velocity Tell Us about Low Inflation in the U.S.? [short]
Yi Wen, Assistant Vice President and Economist, and Maria A. Arias, Research Associate

Matthew Leising — CME Seeks to Broaden Cash Options in Clearinghouse Default Rules

“We talked to a number of clearing members and regulators to determine what solution might satisfy the concerns and also create the least adverse impact for clearing members and their customers,” she said. “Our conversations with regulators indicated that they were looking for an outcome in which the clearinghouse didn’t access the discount window directly, but still used it effectively through primary dealers.”

Sorting out how to keep clearinghouses solvent is critical, said Will Rhode, director of fixed income research in New York at Tabb Group LLC, a financial-markets research and advisory firm.

“This is a massive deal because it’s coming down to the fact that somebody’s going to have to step in” to prevent a major clearinghouse from failing in times of stress, he said during an interview. “The potential of a clearinghouse default is equivalent to several Lehmans,” he said, referring to the 2008 collapse of Lehman Brothers Holdings Inc., one of the largest swap dealers at the time.

Bloomberg News
CME Seeks to Broaden Cash Options in Clearinghouse Default Rules
Matthew Leising

As the world's leading and most diverse derivatives marketplace, CME Group is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through the CME Globex electronic trading platform and trading facilities in New York and Chicago. CME Group also operates CME Clearing, one of the largest central counterparty clearing services in the world, which provides clearing and settlement services for exchange-traded contracts, as well as for over-the-counter derivatives transactions through CME ClearPort.

Conflating CURRENT FIAT with FUTURE REAL OPTIONS

(Commentary posted by Roger Erickson - replicated from a comment first posted Dec, 2012 at Seeking Alpha)



Every citizen should learn the rudiments of Situational Awareness by, say, age 10, so that we as a people can keep exploring real national options, not just working at looting one another.

Teamwork. Surely that's not a difficult concept in such a sports-mad country?

Teamwork, like any goal, requires assessment systems, so we can practice before seeing if we can be successful in novel situations. Successful outcomes can always be interpreted in short, medium and long-term metrics. How about these familiar standbys?
.. fiat currency accounting?
.. proportional population employment?
.. survival of the country (based on capabilities & affinity ... of US citizens).

No citizen can assess what they can do for their country if they don't understand the basic operations listed above, starting with fiat currency.

Yes, we already have these measures that could let the public track success, but that doesn't mean that they're used. Largely because most citizens don't learn much about policy tools we already possess. Most of our problems were, in fact, taken care of by the Automatic Stabilizers enacted during the 1930s-1940s (social security, FDIC, unemployment benefits, etc). The only one remaining is Control Fraud (google William K. Black), and that's only because we let crooks talk us into deregulating financial crime, right up to repealing Glass-Steagall.

Everything else comes down to a fight between merchants and citizens, waged through the currency supply, either restricting it to preserve the buying power of hoarded cash, or letting it depreciate to continuously grow liquidity. Let's see how many grasp the following argument.

How do we afford to pay the "fiat interest on fiat bonds."

If carried far enough, that discussion eventually leads to 2 points.

First, we can't fail to pay the interest, since we can always generate as much fiat liquidity units as we want.

So, second, the argument reduces to either:

a) Arbitrarily maintaining the purchasing power of previously hoarded fiat (liquidity units), by progressively depriving an increasingly complex economy of both relative liquidity AND return-on-coordination [i.e., pay the fiat interest by draining private savings of previously issued currency; even though population & net capabilities... are both increasing]. [Even fools don't want that, when faced with a choice. Only pure sociopaths do.]

or

b) Instead, enlarge the fiat currency base [the unit of liquidity] with expanded issuance (public spending), thereby diluting the absolute buying power of yesterday's liquidity units. Why? In order to provide enough liquidity to readily DENOMINATE and hence rapidly explore the expanding options of tomorrow's return-on-coordination. Coordination possible from the pairing of more people with more capabilities.

That is the "SOCIAL-SPECIES DILEMMA." Evolve and stay in the adaptive race, by organizing on a larger scale ... or ... become a has been culture, and become either extinct or a domesticated lunch source for some other, more rapidly adapting species - i.e., one optimizing it's liquidity in order to explore expanding options faster than your culture does.

People who save excessively, i.e., hoard fiat beyond liquidity needs, are hoarding today's output and thereby depriving their grandchildren of expanded options.

Our grandchildren's options are reduced without our full investment in generating those options. Our Output Gap = grandchildren's Options Gap, and the relation is not linear, but exponential.

If our output gap is "j", their options gap is [j(e)], i.e., "j" to some unpredictable exponential "e".

That's how evolution has worked since the dawn of time. We die so that our descendents can be far more than we were. It's called sexual recombination, or cultural recombination, or - in general form - Options Recombination. (see the "Traveling Entrepreneurs Task")

This all follows from the simple, bottom-up dynamics of organized systems.

Walter Shewhart: "In all complex systems, the highest cost, by far, is the cost of coordination."

Obvious corollary: "In all complex systems, the highest RETURN, by far, is the RETURN on [investing in] coordination."

***

SeekingAlpha Commenter Zmartmoney added a key point.

To all who care to notice, you've just explained all our problems in one short treatise. The fact that 90% of the population does not understand any of what you wrote is our heritage - we, as a nation, are now virtually clueless as to how govt, business, or economies work and what role each of us plays in it. This is a testimony to the insidious nature and capabilities of politicians and their success in dragging the discussion into the ditch to drown it quietly while stealing from everyone in sight. The number of statesmen in the Legislative, Judicial, and Executive branches of our govt can be counted on two hands, and we'd probably argue about which ones those are. Our doom is sealed by our inability to grasp why we are here and what solutions, if any, might lead to our recovery to a state of being well informed and capable of making decisions in our personal lives and our govt. Sorry.

We as an informed electorate were not always this ignorant, nor do we need to remain that way. I hope we can someday prove him wrong. To do that, our grandchildren need more options, and they need to be AWARE of them. To provide those options and capabilities, we need to express more initiative (fiat) now, and also select where to apply it - wisely, not randomly.

Noah Smith — The hard-money people throw Gene Fama under the bus

I think where one does see evidence of prices higher than they would be otherwise is likely in equities were low borrowing rates decrease the cost of margin (leverage). Cost of margin is hugely influential in speculative markets.

Housing "bubble" reigniting? No way. Prices are still way down from their highs, a historically high percentage of purchases of existing residential RE are foreclosure or underwater related and for cash, with Wall Street and flippers big buyers in expectation of exceptional ROI on resale. Rent/purchase ratio is still reflecting the bursting of the bubble, and new housing is not exactly "on fire." There is not going to be another housing bubble in the US for years and there are still housing bubbles to pop abroad.


But it's good to see the inflationistas in retreat and throwing the EMH under the bus, too, in favor of financial instability. But is the Fed creating financial instability now? No way. The Fed is still fighting the consequences of financial instability and not all that successfully.

Noahpinion
The hard-money people throw Gene Fama under the bus

Noah Smith

Stubborn Mule — Wall of Liquidity

Sean Carmody debunks the myths of "cash on the sidelines" and the "wall of liquidity."


Wall of Liquidity
Stubborn Mule

Otaviano Canuto — Currency War and Peace

WASHINGTON, DC - Much of the hype surrounding last month's meeting in Moscow of G-20 finance ministers and central bankers was dedicated to so-called "currency wars," which some developing-country officials have accused advanced countries of waging by pursuing unconventional monetary policies. But another crucial issue - that of long-term investment financing - was largely neglected, even though the endgame for unconventional monetary policy will require the revitalization or creation of new long-term assets and liabilities in the global economy....

... global leaders should work to maximize the liquidity that unconventional policy measures have generated, and to use it to support investment in long-term productive assets.

Caijing
Currency War and Peace
Otaviano Canuto | Vice President for Poverty Reduction and Economic Management at the World Bank

Can't Get More Straightforward Than This

commentary by Roger Erickson

A Question, Answered by Warren Mosler

Japan, US, ECB, they're all just bureaucracies doing what they do ... nothing ... until absolutely forced to, kicking & screaming.

Plus, it gets worse. It's hard to self-tune & select well from a pool of options you refuse to adequately fill. If you limit your options & reduce baseline diversity ... voila ... you steadily degrade the statistics & probability of making high quality selections. Duh!

Selection & option-diversity go hand in hand, inseparable, catalyzed by threshold liquidity & distributed initiative.

What part of 2-stage optimization don't bureaucrats get?

It doesn't matter what wave you select if you don't paddle your surfboard far enough out into the damn ocean!

This ain't rocket science. Just bureaucracy in inaction.

What's it Say When a Fiat-Currency-CB Promotes Microfinance?

commentary by Roger Erickson

That there's a 2-tier approach to national liquidity?

This, from the Central Bank of a country that endorsed fiat currency 80 years ago? We need to send the entire St. Louis Fed back in their own WayBackMachine, to visit Marriner Eccles.

Maybe they could pick up on the concept of increasing the income of all citizens, so we could all use the banking system we already have?

If we have a system for providing liquidity to all citizens with real options, why not use it? Is the St. Louis Fed acknowledging that our existing banking system is - in practice - only for "high-income" people?

In a fiat-currency system, admitting that we have endorsed low-fiat and high-fiat Americans equates to constrained and unrestrained Americans, as a point of logic. That is both class based and system-non-science idiocy of course, since it ignores the logic of both sexual and cultural recombination. Since we have no predictive power, we need to practice exploring fully open Options Recombination, at breakneck speed - or else. Anything less is cultural suicide. If we don't explore our options, some other nation will.

Screw the Merchant Lobby. Free Options = National Liquidity = Managed International Trade.  We need liquidity and Free Options far more than Free Trade.  The Free Trade lie is promoted by a Merchant Lobby wielding only microintellect, but plenty of propaganda. Who's fooling whom, America?  Patriotism is NOT promoting your local merchant channeling Benedict Arnold.

***

Today: St. Louis Fed ‏@stlouisfed Video: See how microfinance can work for low-income Americans

They're revisiting their own review from Sept 2011, here's the

St. Louis Fed: Lessons from Bangladesh: How Microfinance Can Work in America

SEPTEMBER 2011

Daniel Davis, former community development specialist with the St. Louis Fed, traveled to Bangladesh in the winter of 2010/2011 to examine the impact microcredit has had on the developing nation.

While there, he had the opportunity to spend time with leaders of some of the world's most innovative microfinance institutions, including Dr. Muhammad Yunus, a Nobel Prize-winning economist from Bangladesh and founder of the nation's Grameen Bank. Davis' insights are shared here.

Related Article:
"All I Really Needed To Know about Microfinance I Learned in Bangladesh," by Daniel Davis, spring 2011 issue of Bridges | PDF presentation

Related Video:
Interview with Microfinance Expert and Kiva Co-Founder Jessica Jackley, May 2011

Thinning Money Out of Mint Air

commentary by Roger Erickson

The power to create money out of thin air

Ann Pettifor discusses HOW capitalist countries keep their electorates so misinformed about currency creation, and implicates orthodox economists as unwitting accomplices - let's just say Innocent Frauds.

It seems like a rather long treatise to summarize a simple point, and she immediately gets into a shouting match with Mike Norman over semantics, then off into sidetracks with Ralph Musgrave about fractional reserve banking. Unfortunately, little of the treatise or discussion quickly reduces public confusion.

For the public at large, why not just hammer on 5 of the simplest points - as a start? If the bulk of the electorate knew at least the following, it would be a significant milestone that we could build upon.

1) A growing economy requires a growing currency supply, simply for liquidity.

2) A steadily increasing currency supply means the buying power of a unit of liquidity must float.

3) #2 sets up a potential point of friction. Those inappropriately hoarding fiat currency see net liquidity growth as "Thinning Money Out of Mint Air" - i.e., reducing buying power of their stash. Their narrow, personal preference limits systemic liquidity. How do we handle that limiting friction between individual and group fortunes?

4) The solution is to make sure that all understand that the potential return-on-coordination from scalable liquidity far outweighs the static-asset value of hoarded liquidity units (fiat currency). Simply put, personally "save" by investing in some mix of dynamic and static assets, but do NOT try to save primarily in liquidity units.

5) Our constant need? Continue the ongoing transition from hoarding static assets to hoarding ability to procure dynamic assets. That's what social species do. It's called evolution (of teamwork).

ps: In a fiat currency regime, there is no fractional reserve banking, since banks don't lend out reserves - but leave that to later.

"Revenue" Has no Relevance Whatsoever to An Issuer of Any Given Liquidity Notation (aka, fiat currency)

commentary by Roger Erickson

Fiscal Cliff And Deficit Conversation Misses The Point

This article starts out with an intriguing title, but manages to miss the point itself. It concludes by suggesting that social dedication to minimum safety nets will have to be undone. Then, the comments go down the usual track of "governments spending more than they take in." Wow. No intelligent discourse there.

Since it's still necessary, let's restate the recurring issue that people are beating their heads against, like morons battling a brick wall.

"Revenue is obsolete to a fiat currency issuer" - doesn't seem to work well enough.

So let's try a simpler translation. "Revenue Has no Relevance Whatsoever to An Issuer of Any Given Liquidity Notation (aka, fiat currency)."

Gov receipts? Of fiat currency? Issuer receipts of liquidity notation?

By that logic, math departments must constantly be in danger of running out of numerals! Do people computing sense from nonsense run into Computational Cliffs? If they do, it's a voluntary, not absolute act, and the solution is always more, not less, practice. If people run low on numerals or symbolic logic notation, how do they arrange to get more "receipts" of either or both? Let me guess. Down Alice's rabbit hole? At the present time, you can actually successfully run for Congress simply by digging yourself in deeper.

So how, exactly, does a currency issuer take in more fiat than it utilizes? Why does a currency issuer EVER need back any of what it can already print in unlimited amounts, just-in-time, just-as-needed? It doesn't of course. Taxes in a fiat currency regime are a tool for shaping aggregate demand - not, I repeat NOT a source of fiat. Citizens must get that fundamental, operational axiom down first before trying discuss their own fiscal policy. It's not all just theory - the operations set constraints on what does & doesn't make sense for given situations. Take a gun as an example. Ballistics experts can design whatever range, accuracy & loading mechanisms they want - while blithely assuming the gun will always be cleaned and oiled to meet their assumed needs. Operationally, however, it makes a world of difference if one does something simple like chrome plate key parts and the inside surface of the barrel - so that the gun can won't jam, and will keep working long periods without maintenance.  Think of operational features as automatic stabilizers that protect us from the divergence of theory and practice.

Everything in this article above goes awry by conflating CURRENCY ISSUERS with CURRENCY USERS.

Modern, fiat currency is NOT a long term store of value. Fiat currency is 99.999% for liquidity, not value.

Besides, if we just use our brains, we cannot run out of liquidity (aka, fiat currency; aka, public initiative).

And oh yes, once again, "Revenue" has no relevance whatsoever to an issuer of any given liquidity notation (aka, fiat currency).  I'd repeat that 12x, but it's better if readers practice that at home.  Maybe in front of a mirror, unless they've run out of photons and need receipts to see the light.

Taxes for Revenue are Obsolete - NY Fed Chief, 1946

If that link is down, try p. 35 at this link.