Oct. 16, 2008 (LPAC)–The trillion dollar bail-out of British banks just implemented by Prime Minister Gordon Brown is already unravelling on the derivatives issue, which are now being questioned in the British House of Commons.
Archive for the ‘Financial crisis’ Category
The financial system established in England after 1688, based on usurious lending to the state by private bankers, is reaching its final blowout in the form of a series of devastating bubbles and a massive bailout of the financiers with public money. But the issuance of money doesn’t have to be in the hands of a private consortium: another credit system is possible.
Brown’s Bail-Out Plan Already Falling Apart due to Derivatives
Posted by seumasach on October 16, 2008
Posted in Financial crisis | Tagged: stop the bailout | Leave a Comment »
Surprise! The Global Bailouts Fail
Posted by smeddum on October 16, 2008
Surprise! The Global Bailouts Fail
Increase Decrease
October 15 2008 (LPAC)–The gigantic US and European bailouts of the last 48 hours of some $2.6 trillion, had zero effect on the corpse they were supposedly intended to resuscitate, i.e. the world interbank lending system, a senior European banking source told EIR today. This, despite the fact that a large part of the guarantees issued on both sides of the Atlantic is a 100% guarantee of interbanking lending. Read the rest of this entry »
Posted in Financial crisis | Tagged: financial collapse | Leave a Comment »
Largest Bubble Burst in History
Posted by smeddum on October 15, 2008
Largest Bubble Burst in History
16 October 2008
By Nouriel Roubini MoscowTimes
The rich world’s financial system is headed toward a meltdown. Stock markets have been falling most days, money markets and credit markets have shut down as their interest-rate spreads skyrocket, and it is still too early to tell whether the raft of measures adopted by the United States and Europe will stem the bleeding on a sustained basis. Read the rest of this entry »
Posted in Financial crisis | Tagged: bubble burst, bubble bursting, economic collapse, financial collapse, Financial crisis | Leave a Comment »
Iceland minister: Must look at all options, including EU
Posted by smeddum on October 13, 2008
Iceland minister: Must look at all options, including EU
Mon Oct 13, 2008
REYKJAVIK (Reuters) – A key Icelandic minister long opposed to joining the European Union said on Monday that given the current financial turmoil, the country had to consider every option, including a shift in that stance. Read the rest of this entry »
Posted in Financial crisis | Tagged: bankrupt iceland, Iceland Bankrupt, Iceland is broke | 1 Comment »
UK banks seek to raise £43.6bn
Posted by seumasach on October 13, 2008
Alistair Darling pledged that RBS and the merged Lloyds-HBOS would be run at arm’s length from the government and ministers would not be involved in day to day decisions.
”The reason we are doing this is not because we want to run banks,” the chancellor told the BBC Today programme. ”The reason we are doing it is because this is the only way, when markets are not open to certain banks, they can get the capitalisation they need, this is the government’s only intervention here.”
Whilst the guardian lefties and the the BBC’s Robert Peston hail this “nationalisation”, the FT can be relied on to give the city’s brutal verdict. The only surprise for us is that the government is taking some preference shares, but this, along with the dividend restrictions, only really serves to guarantee that the share issue, which the Treasury is underwriting fails completely. The government therefore ends up paying billions for a whole load of shares which it could have simply taken for nothing.
The government has done enough to start a run on the pound and bankrupt the taxpayer, but this is a drop in the ocean of banking debt.
Peter Hall Larsen
FT
13th October, 2008
Some of Britain’s largest banks are to scrap dividends as part of a government plan to inject £37bn into three of the country’s biggest lenders.
Under the terms of the bailout, Royal Bank of Scotland, Lloyds TSB and HBOS will be prevented from paying dividends on ordinary shares until they have repaid in full a total of £9bn in preference shares they are issuing to the government. Barclays, which is hoping to avoid government support by raising around £6.6bn from private investors, has scrapped its final dividend for 2008 in a move designed to save £2bn.
Posted in Financial crisis | Tagged: Financial crisis, stop the bailout | Leave a Comment »
Key points of euro nations’ financial crisis plan
Posted by smeddum on October 12, 2008
Oct 12, 5:43 PM EDT
Key points of euro nations’ financial crisis plan
European leaders agreed to several measures (AP) — German Chancellor Angela Merkel called them a “tool kit” – that governments will be able to use to shore up financial institutions and stop banks’ financing problems from contaminating the wider economy. A few highlights: Read the rest of this entry »
Posted in Financial crisis | Tagged: Europe's Bank Plan, Key points of euro nations plan | Leave a Comment »
And the solution is – more risky borrowing
Posted by seumasach on October 12, 2008
Lown Turner
10th October, 2008
SO where are you going to get your £16,000 from, then? That’s how much critics of Alistair Darling’s £250bn bank bail-out say it’s going to cost each of us.
Posted in Financial crisis | Tagged: Financial crisis, stop the bailout | Leave a Comment »
Merkel insists on national measures to tackle financial crisis
Posted by smeddum on October 12, 2008
Merkel insists on national measures to tackle financial crisis
http://www.chinaview.cn 2008-10-13 04:42:12
PARIS, Oct. 12 (Xinhua) — German Chancellor Angela Merkel put national measures at the core of a European response on Sunday to the financial crisis but called for a more coordinated approach. Read the rest of this entry »
Posted in Financial crisis | Tagged: EU, European Union, Germany, Merkel | Leave a Comment »
EU in push for world finance summit: Sarkozy
Posted by smeddum on October 12, 2008
EU in push for world finance summit: Sarkozy
12 October 2008, 22:32 CET EUbusinessNews
(PARIS) – The European Union will ask the United States to jointly organise an international summit to reform the global finance system, French President Nicolas Sarkozy said Sunday after talks with EU leaders. Read the rest of this entry »
Posted in Financial crisis | Tagged: EU, European Union, Sarkozy | Leave a Comment »
A £516 trillion derivatives ‘time-bomb’
Posted by alfied on October 12, 2008
Not for nothing did US billionaire Warren Buffett call them the real ‘weapons of mass destruction’
By Margareta Pagano and Simon Evans
Sunday, 12 October 2008
The market is worth more than $516 trillion, (£303 trillion), roughly 10 times the value of the entire world’s output: it’s been called the “ticking time-bomb”. Read the rest of this entry »
Posted in Financial crisis | Tagged: derivatives | Leave a Comment »
Finance ministers face down crisis as IMF head warns of ‘meltdown’
Posted by smeddum on October 12, 2008
So European leaders reject the Paulson plan but will they accept virtually the same thing with a bit of window dressing i.e. the British plan, which Brown is so desperately touting for?
Finance ministers face down crisis as IMF head warns of ‘meltdown’
Steven Edwards , Canwest News Service canada.com
Published: Saturday, October 11, 2008
“But Sarkozy and German Chancellor Angela Merkel said Saturday there would be no European bailout plan like Washington’s $700-billion fund, but they spoke of implementing a common “toolbox” of measures – and other sources said the group could move to guarantee inter-bank lending.”
Read the rest of this entry »
Posted in Financial crisis | Tagged: Financial crisis | Leave a Comment »
In These New Times 