In These New Times

A new paradigm for a post-imperial world

Posts Tagged ‘Credit default swaps’

“The market” is a reactionary mystification: reply to the attack on economic populism from Franco Debenedetti and other Italian economists

Posted by seumasach on May 25, 2010

Today, any objective appraisal would conclude that Greece is far more economically viable and solvent then Citibank. Portugal is more viable than Goldman Sachs. Italy has a brighter economic future by far than J.P. Morgan.

Webster Tarpley

23rd May, 2010

A group of Italian economists led by Franco Debenedetti of the famous financier clan and the banker Paolo Savona, obviously fearful that the Berlusconi-Tremonti government of Italy will join last Tuesday’s successful German ban on the type of toxic derivative known as the naked credit default swap, have sent an alarmed warning to the Corriere della Sera of Milan1. Debenedetti has contributed an article expressing similar sentiments to the Italian business newspaper Il Sole 24 Ore in which he rails at the “Mrs. Merkel market” now in force in Germany2. These economists, obviously inspired by the doctrines of Friedrich von Hayek and the Austrian school, want Italy to remain faithful no matter what to the widely discredited ideas of laissez-faire economics, even as those doctrines are everywhere under attack for having caused the current world economic depression. For these neoliberal and monetarist thinkers, any attempt to ban derivatives or tax speculation must be condemned as “economic populism,” which for these writers is a term of opprobrium.

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Milan Swaps Under Criminal Probe by Prosecutor Pursuing Banks

Posted by smeddum on August 27, 2009

Milan Swaps Under Criminal Probe by Prosecutor Pursuing Banks

By Vernon Silver and Elisa Martinuzzi

Aug. 27 (Bloomberg) — In June 2005, Milan’s city council voted to hire four banks to arrange Europe’s biggest-ever municipal bond sale at a fee of just 0.01 percent. That minuscule cost puzzled one councilman.

“I had a hunch something was wrong,” says Basilio Rizzo, one of 14 politicians on the 60-member council who tried to change the deal after becoming suspicious of the banks’ motives. “Banks can’t do things for free.” Read the rest of this entry »

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Radio: Jim Willie on statistical fraud

Posted by smeddum on June 10, 2009

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Radio: Jim Willie and Rob Kirby on losing faith in the dollar

Posted by smeddum on May 9, 2009

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Black Friday

Posted by smeddum on October 10, 2008

“There is general agreement among economists about what needs to be done to stabilize the financial system. The banks have to be recapitalized, all deposits have to be guaranteed (beyond the $100,000 FDIC limit) and additional stimulus has to be provided to increase consumer demand.”

Whitney is another one, along with William Engdahl who seems to have fallen for the British recapitalisation scheme or ,rather, scam. This is a bottomless pit of public money: the banks have to be put through bankruptcy, then nationalised with guarantees to depositors and mortgage lenders. This can only be done within an agreed international framework. 

Black Friday Counterpunch October 10 / 12, 2008


Stock markets across the world are in a state of hysteria. The tidal wave of sell-offs, which began when Henry Paulson announced the Bush administration’s $700 billion bailout plan for the sinking banking system, has swelled into a global tsunami racing round the globe. Shares fell sharply across Europe and Asia for the fifth straight day following a 679 drop on the Dow Jones. Nearly $900 billion was wiped off the value of U.S. equities in just one trading day. The Chicago Board Options Exchange Volatility Index, the “fear index”, soared to a record 64. Credit markets remain frozen. Libor, the London interbank offered rate, nudged up slightly on Thursday night, signaling even greater resistance to lending between the banks. Until there is relief in the credit markets, stocks will continue to slide. But trust has vanished. The 50 basis points rate cut that was coordinated with foreign central banks has had no effect. The market is being driven by fear and pessimism. Read the rest of this entry »

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