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.
Posted by smeddum on October 12, 2008
FE Editorial : G-7 + crisis = G-14
The Financial Express
Posted: Oct 11, 2008 at 0008 hrs IST
With the world in crisis, are seven countries enough to tackle it? Expansion of G-7 has been debated off and on ever since BRIC (Brazil, Russia, India and China) became a force to reckon with. This crisis may be the time to expand the club. World Bank president Robert Zoellick has been admirably clear on this, calling for G-7 to become G-14, adding India, China, South Africa, Mexico, Russia, Brazil and Saudi Arabia. It needs to be said that some of these countries are more important to global plans than, say, Italy, a founding member of G-7. Asian representation, in particular, is crucial because the big economies of this continent will grow even amidst the crisis at healthy rates, though disappointing by their own recent standards (see previous edit for India’s prospects). More big economies mean better coordination. How national actions can make a crisis worse was clear when Ireland’s unilateral declaration of complete guarantee of all bank deposit, a policy soon followed by countries like Denmark and Greece, began a large-scale transfer of funds within the EU, weakening already weak banks in other member countries of the EU which hadn’t guaranteed all deposits. Read the rest of this entry »
Posted in Financial crisis, Multipolar world | Tagged: G14 | Leave a Comment »
Posted by seumasach on October 11, 2008
Cailean Bochanan
11th October, 2008
The confusion that reigns concerning the nature of the British government’s intervention last Wednesday has reached staggering proportions. The study of Alisdair Darling’s statement leaves no doubt that there is a vast gulf between the proposal’s themselves and the way in which they have been presented. Last Sunday David Cameron had invoked the Swedish intervention in 1992 and set the ball rolling for the partial nationalisation thesis. This was very obliging coming from the so-called opposition and set in train an awesome “perception management” operation from the masters of these black arts ever since Walsingham’s Elizabethan police state had the bright idea of using the players, the stage itself, as a vehicle for official ideology. “For there is nothing either good or bad, but thinking makes it so” and if people can be made to think that giving away £500 bullion plus to private interests is part nationalisation then all the better. This propaganda onslaught saw many seemingly unlikely figures chiming in at suitable moments to confirm the story-line, and doing so all the more effectively under the guise of attacking it.
Read the rest of this entry »
Posted in Financial crisis | Tagged: bailout, stop the bailout | 3 Comments »
Posted by smeddum on October 11, 2008
Hoping There’s Hope
by Doug Noland October 09, 2008 prudentbear.com
For the tumultuous week, the Dow (down 36.3% y-t-d) and S&P500 (down 38.8% y-t-d) sank 18.2%. There was no place to hide. The Morgan Stanley Consumer index dropped 14.5% (down 26.2%) and the Utilities were hit for 20.3% (down 39.2%). The Transports declined 9.4% (down 18.1%), and the Morgan Stanley Cyclical index fell 15.4% (down 41.5%). The small cap Russell 2000 declined 15.6% (down 31.8%), and the S&P400 Mid-Caps dropped 16.9% (down 35.9%). The NASDAQ100 fell 13.7% (down 39.1%), the Morgan Stanley High Tech index 15.9% (down 41.6%), and the Semiconductors 13.6% (down 39.7%). The Street.com Internet Index (down 34.8%) and the NASDAQ Telecommunications index (down 38.3%) each fell 14.8%. The Biotechs dropped 15.8% (down 21.4%). The Broker/Dealers collapsed 25.6% (down 57.7%) and the Banks sank 21.7% (down 40.3%). With Bullion down $13.60, the HUI dropped 7.8% (down 39.4%). Read the rest of this entry »
Posted in Financial crisis | Tagged: credit crisis | Leave a Comment »
Posted by seumasach on October 10, 2008
City gang pulls off £500 billion heist.
Cailean Bochanan
10th October, 2008
After Wednesday’s dramatic events I dreamt that that was the headline in the Sun newspaper. But it was a dream; just that.
I awoke to the nightmare: The Sun, of course, had joined the rest in the great chorus of approval for Champagne Gordon, toast of the city. And an impressive chorus it was, including some onetime mavericks and black sheep who had returned to the fold just in time and were now singing with even greater gusto than more longstanding stalwarts such as the chairman of the Bank of England or the leader of the Tory party. There, was former scourge of anglo-saxon finance, Will Hutton; there, George Galloway purring with admiration now former colleague Alisdair Darling has finally decided to deliver (or, rather, stand and deliver) even if it was “too little, too late.” There too were the brand new party leaders, like Nick Clegg with his freshly-tamed financial spokesman, Vince Cable. All were there of the great and the good and they were singing off the same hymn sheet that great puritan hymn, “To be a Pilgrim”. These were the words, which in a transport of bitterness I imagined them to intone to that august melody. Read the rest of this entry »
Posted in Financial crisis | Tagged: bailout, financial collapse, stop the bailout | 2 Comments »
Posted by smeddum on October 10, 2008
Rogers: Global Bankers Have Unleashed Inflationary Holocaust
CNBC hosts unable to grasp basic economic principles
Paul Joseph Watson
Prison Planet
Friday, October 10, 2008
Legendary investor Jim Rogers warned during a CNBC interview this morning that global central banks are creating the environment for an inflationary holocaust by their ceaseless overprinting of currency, a measure that isn’t even successful in stabilizing the stock market. Read the rest of this entry »
Posted in Financial crisis | Tagged: inflation | Leave a Comment »
Posted by alfied on October 10, 2008
by Jim Willie, CB. Editor, Hat Trick Letter | October 9, 2008
Financial sense university
Pardon the jumpy style, not burdened by depth, preferring breadth instead. The events of the last few days continue to be remarkable, alarming, chaotic, surreal, and desperate. The globe is slowly realizing that the United States is careening toward a probable financial death experience. Nothing has worked to date, and nothing will work in the present, not bailouts, not liquidations, not nationalizations, not papered over fraud, and surely rate cuts. The stark reality contains a blur of a massive locomotive derailed, having run over the mountain ledge, heading downward in a freefall, subjected to the force of gravity, and ripping through a gigantic erected paper net designed to halt its crash. CLOWNS IN CHARGE DO NOT REALIZE THE SYSTEM IS FLAWED AND BROKEN, AS EFFORTS TO REDOUBLE THE DEVICES ARE ALL DRAWN FROM THE SAME DEFECTIVE TOOLBAG. MAJOR BANK FAILURES, BANKRUPTCIES OF MAJOR FINANCIAL FIRMS (LIKE INSURANCE), AND INDIVIDUAL MARKET DEFAULTS COME VERY SOON. Incredible events are occurring behind the scenes, the details of which would shock most people, even those who deal with the underworld. Recall Wall Street propaganda this summer? That the US will be first to emerge from the carnage? Such lunatic promotional nonsense should be recalled when it becomes clear that the Untied States cannot emerge from its broken condition. The game is over, and only the enlightened realize it! What lies ahead is the tragedy of distintegration!!! That includes the nation and its very governmental structure. Read the rest of this entry »
Posted in Financial crisis | Tagged: Gold Default | 1 Comment »
Posted by smeddum on October 10, 2008
Aussies joke – and hope – that China can save capitalism
1 day ago
SYDNEY (AFP) — A cartoon on the front page of Australia’s national newspaper Thursday neatly illustrates an irony admitted by the government: communist China could save capitalism.
The illustration shows a Chinese man in a Superman outfit telling exactly this to a bankrupt, cigar-smoking Wall Street tycoon covering his nakedness in a barrel.
“Oh, you’re just loving this, aren’t you,” the fallen high-flyer replies in the cartoon in The Australian. Read the rest of this entry »
Posted in Financial crisis, Multipolar world | Tagged: Australia, China Australian cooperation | Leave a Comment »
Posted by smeddum on October 10, 2008
Dollar Libor Jumps to New Credit Crisis Extreme
Interest-Rates / Credit Crisis 2008
Oct 09, 2008 – 02:39 PM
By: Mike_Shedlock Market Oracle
The cost of borrowing in dollars for three months in London soared to the highest level this year as coordinated interest-rate reductions worldwide failed to revive lending among banks for any longer than a day. Read the rest of this entry »
Posted in Financial crisis | Tagged: credit crisis, economic collapse, economic disaster, economic slump, LIBOR | Leave a Comment »
Posted by smeddum on October 9, 2008
Signs of a ‘nonpolar’ world emerging amid financial crisis
By YOICHI FUNABASHI, Asahi Shimbun editor in chief Asahi.com
2008/10/9
There are forebodings that something has clearly come to an end as an age reaches its end.
An editorial in the Wall Street Journal described the decision by U.S. investment bank Morgan Stanley to transform itself into a commercial bank holding company as “the end of Wall Street.” Read the rest of this entry »
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Posted by seumasach on October 8, 2008
Here is a nice little summary of the government’s bailout. I have made a small correction. Does anyone think that this looks like a partial nationalisation of the banks? Let us know your views!
Telegraph
6th October, 2008
The Treasury has today unveiled a multi-billion pound package in an effort to restore confidence in the banking system. Here are the key points.
Read the rest of this entry »
Posted in Financial crisis | Tagged: bailout of bankrupt britain, financial collapse | 1 Comment »
Posted by seumasach on October 8, 2008
One has to admire the control systems of the British elite. In the USA last week it appears that the threat of martial law was necessary to bring Congress into line. Nothing so crude over here: they already have their spokesman strategically placed right across the political spectrum ready to chime in with their support or to provide “verification” to the key lies such as that this is a partial nationalisation. The left and far-left have done more than their share in their usual treacherous fashion. Here, leftist icon, George Galloway, does his bit. In amongst all the vacuous leftist verbiage, the essential message for the government is positive though perhaps, “too little, too late”. The left continue to make great play of the sophistic notion that government hand-outs to bankers constitute a break from neo-liberalism.
A statement by George Galloway
socialist unity
“In the midst of this financial crisis which threatens us all, at last the government is taking action which may begin to shore up the banking system. I hope that it is not, as many in the City are saying, “too little, too late”. At almost every step the government has delayed: it’s taken some time to for the Prime minister and Chancellor to detach themselves from the outdated dogmas of free market economics. The Tories managed the appearance of doing so quicker, testimony to their cynicism and opportunism. If anyone suspects sincerity in the Tories mock outrage at the City spivs, then look at the party’s hedge-fund backers and its MPs’ directorships.
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Posted in Financial crisis | Tagged: bailout, financial collapse, treacherous leftists | Leave a Comment »
In These New Times 