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Crisis in Chartland - US Economy Failing (Read 21387 times)
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Mar 18th, 2008, 8:10pm
 

Jon Stewart is hilarious here. This is a must watch video. It even shows economic pundits last week PRAISING the failed institution of Bears Stern.

http://www.thedailyshow.com/video/index.jhtml?videoId=164178&title=broken-ar...

7 minutes

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Reply #1 - Mar 21st, 2008, 4:03am
 

TENT CITIES SPRING UP IN LOS ANGELES




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Reply #2 - Mar 22nd, 2008, 2:31am
 


The Fall of the Dollar Empire


global research article

The following is an interview with Hamid Varzi an economist and banker based in Tehran about the US economic crisis.


Quote:
Q.Please tell us more about the 2007 subprime mortgage financial crisis and why, how and when it began?

A.The crisis began in 2000 with Bush Jr.'s election that re-established the irresponsible "Supply Side" and "trickle-down" economic policies of the Reagan years. We are wrong to focus only on the subprime crisis, which has been conveniently blown out of all proportion in order to create the convenient and comforting impression that this is a manageable problem solvable through a simple reduction in interest rates and a 90-day government mandated delay on foreclosures (Hillary's recommendation).

<snip>

Q.What was the role of investment banks and mortgage lenders in creating the crisis? Do you think any fraud had happened?

As for the US mortgage lenders, their 'irresponsibility' bordered on 'fraud', because they lent money to people who obviously couldn't pay, simply in order to earn higher commissions/fees. If you place a knife in the hand of a 2-year old child and it cuts itself it is you, and not the child, who has been criminally negligent, particularly if you have benefited from the child's discomfort as did the mortgage lenders.

<snip>

Q.How will it influence the life of ordinary people across the globe, especially those at the bottom of the economic ladder in the US and Europe?

A.Those at the bottom of the economic ladder in Europe are about 10 rungs above their counterparts in the US, so the effect will be negligible compared with the economic hardships to be faced continually by those at the bottom of the US economic ladder. Even setting aside the subprime crisis for a moment, US households are more in debt, generally, than at any time since the 1930s Great Depression. The US Wealth Gap and the US Household Savings rate are both at Great Depression extremes despite an extended period of global economic growth.
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Reply #3 - Mar 22nd, 2008, 6:20am
 


JOHN VOGEL - SUBPRIME MESS How the whole thing got out of hand.




3 minutes

Quote:
The sub-prime mortgage mess has many implications: new barriers to getting a mortgage, the tumbling stock market, and yes, maybe trouble getting investment dollars for that cool start-up.

In the digital economy, the shake-out in the mortgage industry could make a big hit on online advertising with troubled marketers in the home finance market, like Countrywide. Larry Dignan at ZDNet weighs in with an analysis as does Rafat Ali over at PaidContent.

To understand how this all has happened, here's my interview John Vogel at the Tuck School of Business at Dartmouth. Professor Vogel is an expert on the real estate industry. He gives a sobering overview on the root and implications of the sub-prime crisis. I was up in Hanover, New Hampshire earlier this month for this interview.

Here at Beet.TV, we're going to explore more business strategy and finance issues in the weeks ahead. These things affect us all. Stay tuned.

-- Andy Plesser

Coming clean: The Tuck School of Business at Dartmouth is a public relations client of Plesser Holland.


The new term is, "Going to Hell in a Hedgebasket"

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Reply #4 - Mar 22nd, 2008, 7:55am
 

Sub Prime Mess Explained Beautifully!!!




7 minutes

Plus they are playing Pink Floyd's song Money!!

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Reply #5 - Mar 22nd, 2008, 8:11am
 


Another great explanation of the subprime mess.





3 minutes
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Reply #6 - Mar 23rd, 2008, 1:58am
 

CENTRAL CALIFORNIA HOUSING CRASH


from October 11, 2007




This is 5 months old and look how scary it sounded back then. Things have definitely gotton worse.
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Reply #7 - Mar 25th, 2008, 9:49am
 


Hagens Berman Sobol Shapiro Files Proposed Class-Action Lawsuit on Behalf of Bear Stearns' Employees Citing ERISA Violations


prnewswire report

Quote:
SEATTLE, March 24 /PRNewswire/ -- Hagens Berman Sobol Shapiro LLP
("Hagens Berman") (http://www.hbsslaw.com/bsc) today announced it filed a
proposed class-action lawsuit in the United States District Court for the
Southern District of New York on behalf of The Bear Stearns Companies
(NYSE: BSC) ("Bear Stearns" or the "Company") current and former employees,
claiming the company violated ERISA laws concerning the management of the
Employee Stock Ownership Plan ("the ESOP" or "the Plan") from December 14,
2006 through the present (the "Class Period").

   (Logo: http://www.newscom.com/cgi-bin/prnh/20080317/AQM144LOGO)

   The complaint claims Bear Stearns, headquartered in New York, failed to
provide due diligence in the management of the employee stock ownership
plan and violated sections of ERISA law. Specifically, the complaint claims
the Company failed to prudently manage the Plan's investments in Bear
Stearns stock and continued to maintain Bear Stearns stock as the Plan's
sole investment when it was no longer prudent for participants' retirement
savings. The lawsuit also claims the Plan's fiduciaries failed to provide
participants with complete and accurate information, and failed to properly
monitor participants on the fiduciary board.

   The lawsuit claims as a result of these actions, Plan participants
suffered substantial losses, resulting in the depletion of hundreds of
millions of dollars in retirement savings and anticipated retirement
income. The complaint states that Bear Stearns heavily invested in the
sub-prime mortgage market, including CDOs and other mortgage-backed
securities and by some accounts was the biggest packager of residential
U.S. mortgage-backed securities from 2004 until 2007. Eventually Bear
Stearns had tens of billions of dollars invested in sub-prime loans and
hedge funds heavily invested in bonds backed by sub-prime mortgages. This
combination created not only an unacceptable and imprudent risk for anyone
invested in Company stock, but also an incredibly unstable amount of debt,
which couldn't be sold.

   Throughout 2007, the cards began to fall and the Company's profits fell
90 percent, including a loss of $859 million in the fourth quarter alone.
In early 2008, reports of inquiries into the Company's hedge funds collapse
and dropping stock prices didn't deter Bear Stearns and it continued to
make inaccurate statements that the company remained strong. In mid-March
2008, the Company approached JPMorgan and the Federal Reserve to bail the
company out and on March 15, 2008 the Company was sold to JPMorgan for $2
per share -- a total of $236 million. The reported rise in JPMorgan's
offering price to $10 a share does little to recoup the massive losses
suffered by Plan participants.

   During the class period the Company stock experienced a tremendous
decline -- starting at $157.89 per share on December 14, 2006 and closing
with a 98 percent drop on March 17, 2008 at only $3.17 before moving up to
the $10 range today on news of JPMorgan's increased offering price. During
the time of negotiations and the sale of Bear Stearns to JPMorgan,
employees watched helplessly as stock prices continued to drop.


The deal between J P Morgan and Bear Stearns is about to become very messy. If you don't know the term, "class action lawsuit," it is litigation taken on behalf of many people who were victimized by a company through unscrupulous acts or deeds. In this way, thousands of people who share a commonality vis-a-vis said company can join forces and collectively take that company to court.

In this case, the employees of Bear Sterns, all 60,000 of them, feel that they were constantly lied to about the health of their company, and specifically about the retirement funds that they had set aside for their post-retirement life. Bear Sterns had insisted that all monies earmarked for employee retirements should be maintained in only one entity, Bear Sterns own company stock. As the stock diminished in value, the amount of money available for their retirement also shrunk. Eventually, the value of one share of stock tanked at $2/share, down from the nearly $150/share just a year before.

The lawsuit alleges that upper management deliberately lied to their employees telling them that the company was still very healthy, even after they knew that they were facing bankruptcy.

This is going to get real messy. Class action lawsuits tend to drag on for a long time. While in litigation, the takeover by J P Morgan cannot be completed.

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Reply #8 - Mar 27th, 2008, 8:43pm
 
Nouriel Roubini being interviewed about the current economic crisis in the US:


Nouriel Roubini | Mar 26, 2008
Here is an article and interview with yours truly recently published in Investment News.

NOURIEL ROUBINI: Superbear says there's more to come

By Janet Morrissey  March 24, 2008, Investment News

Nouriel Roubini, one of the biggest bears on Wall Street, wasn't surprised by the fire sale at The Bear Stearns Cos Inc. of New York. He said it just reinforces his 12-point gloom-and-doom outlook, which he unleashed on Wall Street in February, and he now thinks that total financial losses in the credit debacle may top the $1 trillion he previously projected.

Mr. Roubini, 49, a professor at New York University's Stern School of Business and founder of RGE Monitor, a New York-based economic research firm, was met by skepticism when he first predicted a downturn in a July 2006 report, "A Coming Recession in the U.S. Economy." Today, few doubt his early insight.

Since then, his predictions have become even more dire, with forecasts of mounting financial losses and a possible "catastrophic" meltdown in U.S. financial markets.

Mr. Roubini's 12-point outlook forecasts that housing prices will plummet 20% to 30% from their peak, subprime mortgage losses will exceed $300 billion and credit losses will spread outside the subprime arena to credit cards, auto loans and other areas.

He further expects monoline companies, which insure against defaults on certain municipal bonds and mortgage-related securities, to be downgraded, leading to more write-downs.

Other predictions include a meltdown in commercial real estate (see story, Page 44), a wave of defaults on corporate debt and credit default swaps and a sharp drop in liquidity, which could lead to fire sales of assets.

Reached by phone in Stockholm, Mr. Roubini spoke about current conditions and what he expects next.

Q. You have been quite bearish about the economy and financial markets. What was your reaction to the takeout of Bear Stearns?

A. It was not a surprise to me. Last month, I wrote a piece on 12 steps to financial disaster and my Step 9 said that one or two major financial or broker-dealer firms would go belly up, so I saw it coming, quite frankly. I put it in the context of a shadow financial system that is composed of not just broker-dealers, but hedge funds, money market funds, SIVs, conduits and so on that are all subject to a liquidity risk in addition to the credit risk. So, to me, this is just the beginning of a generalized run on these.

Q. Will we see more major banking institutions collapse or get taken out at fire sale prices?

A. Certainly some of the other broker-dealers, like Lehman Brothers [Inc. of New York], have exposure to toxic stuff like mortgage-backed securities and collateralized debt obligations, as Bear Stearns did. And all of the institutions have the characteristics of being highly leveraged, having funded themselves in forms that are very short and liquid and having done investments that are now highly liquid and highly risky. So I see other institutions being at risk — absolutely.

Q. The Fed agreed to provide financing of up to $30 billion to cover the Bear assets that were less attractive to JPMorgan Chase & Co., and this marked the first time the Fed has offered a bailout to a non-regulated bank since the Great Depression. Are you concerned?

A. It's the beginning of a radical change in monetary policy. It's not just the $30 billion that the Fed confirmed to Bear Stearns via JPMorgan — there were two other major options that went in the same direction. One was the decision [two weeks ago] to provide $200 billion so that all primary dealers, including non-bank financial institutions, would be able to swap their illiquid and toxic MBS [paper] for safe Treasuries. The other was the Fed giving any primary dealer, including non-banks, access to the Fed discount window on the same terms as banking institutions. This is a radical change; we haven't seen anything like this since the Great Depression.

These are financial institutions that are not regulated or supervised by the Fed. The Fed has no idea of whether they are just illiquid or insolvent, which creates a massive moral hazard problem. It's a radical shift in the way the Fed operates — and a dangerous way, I would argue.

Q. Dangerous in what way?

A. You're telling people that even if they have made reckless lending and investment decisions, mismanaged risk or continue to do stupid things, the government will bail them out. We are in a systemic financial crisis.

Q. In your 12-step prediction, you estimated total financial losses from subprime lending, credit cards and auto loans at $1 trillion. Has your view changed after Bear Stearns?

A. The losses that we're facing at this point — $1 trillion — is the floor, not the ceiling. Losses might be much bigger than that. Even if you believe subprime losses might be in the order of $300 billion to $400 billion, more losses are going to be derived from commercial real estate, credit cards, auto loans, student loans and leverage loans, as well as from corporate defaults and losses from city assets.

Eventually the monolines will be downgraded, which means we'll see another round of write-downs on the things that they insured.

Q. Where are home prices going?

A. Two years ago, I predicted home prices would fall cumulatively 20%, but now I believe it will be at least 30%.

With a 20% fall in home prices, about 16 million households are under water. They have negative equity, which means the value of their homes is below the value of their mortgages. With a 30% drop in prices, you have 21 million households that are in negative equity. And since the mortgages are no-recourse loans, essentially they can walk away.

Even if only half of the 16 million households were to walk away, that alone could lead to losses for the financial system of $1 trillion. Even a 20% drop in home values may imply losses of $1 trillion that are not priced into the market today. So that's the floor. Again, it could be higher — as much as $2 trillion — if prices fall 30% and more people walk.

Q. You are predicting problems in commercial real estate, which we haven't seen yet. When do you expect the crisis to hit?

A. The same kind of reckless lending practices that occurred in subprime also occurred in commercial real estate — things like really high loan-to-value ratios and inflated estimations of how much rent would increase. If you look at the CMBX index (which tracks bonds backed by real estate loans), the spreads imply a huge number of defaults on existing commercial real estate loans. More important, the market for new commercial real estate loans is totally frozen, like the one for subprime new originations.

Q. But when will this happen?

A. That shoe has not dropped yet. But I expect the severe recession in residential housing will lead to a severe recession in commercial real estate. The reason is simple: If you go west, you have entire ghost towns outside of Phoenix, Las Vegas and throughout California. Who is going to be building new shopping centers, shopping malls, offices and stores where you have ghost towns? Also, there has been a lot of commercial real estate activity in the last couple of years, including a huge increase in retail capacity at a time of consumer-led recession. So, I expect [a commercial real estate] collapse will occur in the next few quarters.

Q. How bad will things get?

A. I would argue this is the worst financial crisis the U.S. has had since the Great Depression. We haven't seen this type of real financial turmoil for the last 70 years. Of course, it's not going to be as bad as the Great Depression. But this isn't your typical run-of-the-mill recession that in the last two episodes lasted only eight months with a minor contraction in output. This is going to last at least 12 months and more likely 18 months, which is something we haven't seen in decades.

Q. So you expect the economy to start turning around in mid-2009?

A. The real economic activity, yes. But some parts of the system are going to be in a severe contraction for much longer; home prices are going to keep falling for another three years, in my view. And the financial mess is going to take years to clean up.

investment news
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Reply #9 - Mar 28th, 2008, 5:57am
 

Subprime Mortgages by the Numbers


american progress article

Quote:
Homeowners Need Help
1.2 million: Number of foreclosure filings in 2006. This number is up 42 percent from 2005.

2,203,295: Number of foreclosure filings in 2007. This number is up 75 percent from 2006.

8.8 million: Number of homeowners that will have zero or negative equity by the end of March 2008. That’s about 10 percent of homeowners who will be “underwater,” or owe more on their homes than the properties are actually worth.

900,000: Households in the foreclosure process during the fourth quarter of 2007, the highest number ever recorded and up 71 percent over 2006.

The Mortgage Crisis Affects Everyone
7.4 million: Estimated number of outstanding subprime loans as of Nov. 2007.

$104 billion: Estimated loss of property value in 2007 dollars resulting from these subprime loans.

$80,000: Potential cost to stakeholders—including homeowners, loan servicers, lenders, neighbors, and local governments—of every new foreclosure.

11.4 percent: National decline in home prices in January 2008 over January 2007, as measured by Standard & Poor’s/Case-Shiller Home Price Index, the steepest decline in the measure’s 20-year history.

$195,900: National median home price in February 2008, a drop of 8.2 percent from a year earlier.

The End Isn’t Yet In Sight
40.5 percent: Drop in housing starts for single family homes since February 2007, the largest year-over-year drop since January 1991. Construction is a source of good-paying jobs, so declines in home construction can have broader consequences for employment.

1.8 million: Number of subprime mortgages set for an interest rate reset in 2007 and 2008.

2.2 million: Approximate number of families who may lose their homes and up to $164 billion of accumulated wealth due to foreclosure over the next few years, according to the Center for Responsible Lending.


I love watching Americans on other forums proudly recite the media's excuse that everything will be fine. We are going through a small hiccup according to Bush, and we all know that Bush walks on water. Whatever he says becomes the gospel for all neocons everywhere.

Boy are they gonna be surprised!!

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Reply #10 - Apr 2nd, 2008, 11:28pm
 

Henry Paulson's April Fools Joke, Lehman Brothers Strength




10 minutes

Don Harold seems to be a straight shooter with a no nonsense way of speaking about the current economy.
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Reply #11 - Apr 4th, 2008, 4:38am
 


Brace for $1 Trillion Writedown of `Yertle the Turtle' Debt


bloomberg article

Quote:
March 31 (Bloomberg) -- Be it ever so devalued, $1 trillion is a lot of dough.

That's roughly on a par with the Russian economy. More than double the market value of Exxon Mobil Corp. About nine times the combined wealth of Warren Buffett and Bill Gates.

Yet $1 trillion is the amount of defaults and writedowns Americans will likely witness before they emerge at the far side of the bursting credit bubble, estimates Charles R. Morris in his shrewd primer, ``The Trillion Dollar Meltdown.'' That calculation assumes an orderly unwinding, which he doesn't expect.

``The sad truth,'' he writes, ``is that subprime is just the first big boulder in an avalanche of asset writedowns that will rattle on through much of 2008.''

Expect the landslide to cascade through high-yield bonds, commercial mortgages, leveraged loans, credit cards and -- the big unknown -- credit-default swaps, Morris says. The notional value for those swaps, which are meant to insure bondholders against default, covered about $45 trillion in portfolios as of mid-2007, up from some $1 trillion in 2001, he writes.

Morris can't be dismissed as a crank. A lawyer, former banker and author of 10 other books, he knows a thing or two about the complex instruments that have spread toxic debt throughout the credit system. He once ran a company that made software for creating and analyzing securitized asset pools. Yet he writes with tight clarity and blistering pace.

The financial innovations of the past 25 years have done some good, Morris notes. Collateralized mortgage obligations, invented in 1983, saved homeowners $17 billion a year by the mid-1990s, according to one study.

Slicing and Dicing

CMOs transformed the business by slicing pools of mortgages into different bonds for different risk appetites. Top-tier bonds had the first claim on all cash flows and paid commensurately low yields. The bottom tier was the first to absorb all the losses; it paid yields resembling those on junk bonds.

What began as a good thing, though, soon spawned a bewildering array of new asset classes that spread throughout the financial system, marbling balance sheets with what Morris calls inflated valuations, hidden debt and ``phony triple-A ratings.'' The more the quants fine-tuned the upper tranches of CMOs and other collateralized debt obligations, the more dangerous the bottom slices grew. Bankers began calling it ``toxic waste.''

Guess where the toxins wound up? That's right: Credit hedge funds are now the weakest link in the chain, Morris says. Their equity stands at some $750 billion and is so massively leveraged that ``most funds could not survive even a 1 percent to 2 percent payoff demand on their default swap guarantees,'' he writes.

`Utter Thrombosis'

Morris sketches a scenario in which hedge fund counterparty defaults would ripple through default swap markets, triggering writedowns of insured portfolios, demands for collateral, and a rush to grab cash from defaulting guarantors. The credit system would suffer ``an utter thrombosis,'' he says, making the subprime crisis ``look like a walk in the park.''
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Reply #12 - Apr 8th, 2008, 10:57pm
 
ECONOMIC TROUBLE AHEAD - THE CANDIDATES PROPOSE


from March 30, 2008



9 minutes

This is normal TV fare  here in the US. On Sunday there are about eight or ten shows on MSM which bring on national pundits to discuss current topics. This is often used by the corporate giants to sell their crap to the American TV audience via these same pundits, many of whom are either members of the administration, former members, or current politicos of import.

The interesting part here is what is said by George Will, who is seated to the left of the lady here (sorry, but I don't know her name). Towards the end he proposes a cap on the amount of money given to bank presidents and oil executives every year, regardless of their companies performance during the year. These sums have skyrocketed in the past fifteen years to become extremely obscene.
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Reply #13 - Apr 10th, 2008, 9:20am
 


Estimates of $1 trillion are now a floor, not a ceiling, for the losses in this financial crisis...


rgemonitor update from Nouriel Roubini

Quote:
Nouriel Roubini | Apr 9, 2008
As times are very busy it is sometimes easier for me to present my views as reported by the press/media rather than by writing directly. So my apologies for free riding today on this press reporting.

 
As reported by the Financial Post today here is a summary of remarks I made today at an event in Toronto:  

Wall St bear may be gloomy but he's often right
Jacqueline Thorpe,  Financial Post  Published: Wednesday, April 09, 2008

Nouriel Roubini says the United States is facing a 12- to 18-month recession that will make a mockery of the recent stock market bounce and the notion of global economic decoupling, cause commodity prices to slide 20% to 30%, and hit Canada hard.      

"I see the stock market rally as being the last leg of a sucker's rally -- essentially people believing the Fed can rescue the economy," Mr. Roubini said in an interview Wednesday. "Once the flow of market and financial news gets worse and worse, the expectation of the Fed rescuing the economy is going to be dashed, and the stock market is going to plunge much more."

Mr. Roubini, economics professor at the Stern School of Business, co-founder of economics Web site RGE Monitor and Wall Street bear extraordinaire, may sound alarming but the rest of the global economics community has spent the better part of the past two years playing catch-up to his increasingly dire prognostications.

He spoke on Wednesday at a panel discussion in Toronto, delivering his comments in a rapid-fire monotone as gloomy as his message.

Mr. Roubini first forecast a slowdown in the fall of 2005 and said the U.S. housing bubble was heading for a bust in early 2006 just as housing starts peaked. By August 2006, while many economists were still forecasting a soft landing, he said the recession of 2007 would be nasty, brutish and long.

This February, Mr. Roubini predicted "one or two large and systemically important broker dealers" would "go belly up," and credit market losses stemming from the subprime meltdown could top US$1-trillion.

A few weeks later, Bear Stearns collapsed and the International Monetary Fund came up with a remarkably similar prediction of losses: US$945-billion. It must be pointed out, however, the IMF estimate is only an estimate of losses that might be realized if distressed securities had to be sold or marked-to-market at current prices. Some of the assets are now attracting buyers.

In that view then, the estimates are still a worst-case scenario. Mr. Roubini has, in fact, recently raised his credit loss forecast to US$1.7-trillion as corporate losses pile on.

He says the stock market is following the same pattern it did in the 2001 recession. It started in March and by April the S&P 500 rose 18% on the view Fed interest rate cuts would stave off a recession. When it couldn't, the market eventually fell off a cliff, dropping 42%.

The S&P 500 typically drops 28% in a recession, Mr. Roubini says, and having only come off 12% so far, it has a long way to go, he said.


Roubini has been six months to a year ahead of all the other economists in his forecasting. Inevitably it appears that his crystal ball sees the clearest of all. I've said this many tmies before, but it bears repeating:

"Hang on to your hats boys and girls, the roller coaster is about to dive."
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Reply #14 - Apr 16th, 2008, 8:05am
 


This is from the Financial Times in London. Here Roubini and O'Neill discuss the current recession and its severity.

http://www.ft.com/cms/af1f4356-e399-11dc-8799-0000779fd2ac.html?_i_referralObjec...

8 minutes

Roubini is saying 12 to 18 months in duration. O'Neill sees it as much less than that. Personally, I've been following Roubini and he's been correct more often than anyone else I've seen out there.
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Reply #15 - Apr 18th, 2008, 3:43am
 


Nevertheless, the wait for the proverbial other shoe to drop might be nearing an end.

Merrill Lynch posts steep first-quarter loss on write-downs
By JOE BEL BRUNO,AP
Posted: 2008-04-17 12:16:59
NEW YORK (AP) - Merrill Lynch  & Co., the world's largest brokerage, on Thursday said it would cut another 3,000 jobs after more than $6.5 billion of fresh write-downs pushed it to a loss for the first quarter.

It marks the third straight quarterly loss for Merrill amid a global credit crisis that began last summer. Banks and brokerages have racked up nearly $200 billion of write-downs to date, with more feared to come.

John Thain , hired as chief executive four months ago to clean up the firm's books, cautioned that things were unlikely to improve in the next couple quarters. The New York-based brokerage lost about $2 billion during the most recent quarter, and has now written off about $29 billion worth of risky asset-backed securities and leveraged loans.

"This was about as difficult a quarter as I've seen in my 30 years on Wall Street," Thain told analysts during a conference call. "We are planning for a slower and more difficult next couple of months and probably next couple of quarters, but are also hopeful for our full year 2008 results."

http://money.aol.com/news/articles/_a/merrill-lynch-posts-steep-first-quarter/n2...
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Reply #16 - Apr 18th, 2008, 6:33am
 
maynard,

Good find. The domino effect has started. Here's Greg Palast's newest video speaking with economist Loretta Napoleoni.



4 minutes
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Reply #17 - Apr 28th, 2008, 7:46am
 


Nouriel Roubini weighs in on the state of the current US recession on CNBC.


http://www.cnbc.com/id/15840232?video=722541884

7 minutes

Basically he's saying that the recession will linger for a total of 12 to 18 months. This has already been the worst housing crisis since the Great Depression.
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Reply #18 - May 31st, 2008, 5:42am
 
AND AGAIN NOURIEL ROUBINI IS BEING INTERVIEWED BY THE FINANCIAL TIMES


Part 1:


Part 2:


Part 3:


He's got the news.
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Reply #19 - Jun 4th, 2008, 7:58am
 


Peter Schiff's "Crash Proof"


Peter Schiff discusses his book on the US economy, "Crash Proof - How to Profit from the Coming Economic Collapse"



4 minutes
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Reply #20 - Jun 15th, 2008, 8:13pm
 
Oil Currency Hypocrisy
by Kenneth Rogoff




project syndicate commentary


Quote:
CAMBRIDGE – Does it make sense for United States Treasury Secretary Hank Paulson to be touring the Middle East supporting the region’s hard dollar exchange-rate pegs, while the Bush administration simultaneously blasts Asian countries for not letting their currencies appreciate faster against the dollar? Unfortunately, this blatant inconsistency stems from the US’s continuing economic and financial vulnerability rather than reflecting any compelling economic logic. Instead of promoting dollar pegs, as Paulson is, the US should be supporting the International Monetary Fund’s behind-the-scenes efforts to promote de-linking of oil currencies and the dollar.

Perhaps the Bush administration worries that if oil countries abandoned the dollar standard, today’s dollar weakness would turn into a rout. But the US should be far more worried about promoting faster adjustment of its still-gaping trade deficit, which in many ways lies at the root of the recent sub-prime mortgage crisis. The administration’s multi-pronged effort to postpone pain to US consumers, including super easy monetary and fiscal policy, only risks a greater crisis in the not-too-distant future. It is not at all hard to imagine the whole strategy boomeranging in early 2009, soon after the next US president takes office.


Kenneth Rogoff is Professor of Economics and Public Policy at Harvard University, and was formerly chief economist at the IMF.

WOW!!!

Shocked Shocked

This guy is talking about the IMF going AGAINST US policy. If the major banks turn against the US, then we are in store for a very distressed economy, one that even Roubini hasn't predicted.

btw, United States Treasury Secretary Hank Paulson was at the recent Bilderberg conference in Virginia, and if that is any indication of what's going to happen, then he'll be our next Vice-President.
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Reply #21 - Jun 20th, 2008, 7:02am
 
June 19, 2008

Bush wants offshore oil and gas drilling

President calls for lifting 27-year moratorium on offshore drilling


President George W. Bush called on congress to lift moratorium on offshore oil and gas drilling saying the only way to lower gas prices was by the nation 'producing more oil.' This echoes Republican presidential candidate John McCain's call to open the Continental Shelf for oil exploration. Congressional Democrats were quick to reject the call for lifting the drilling moratorium, stating that oil companies already have 68 million acres of offshore waters under lease that are not being developed. Democratic presidential candidate Barack Obama, also rejected lifting the drilling moratorium that has been supported by a succession of presidents for nearly two decades. There are two prohibitions on offshore drilling, one imposed by Congress and another by executive order signed by George H.W. Bush, Bush's father, in 1990. His brother, Jeb Bush, fiercely opposed offshore drilling when he was governor of Florida.







3 minutes
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Reply #22 - Jun 21st, 2008, 1:19pm
 
Interesting, I assume that they can't drill off shore because of environmental issues? I was hoping to find the answer, but not in the video.  Smiley
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Reply #23 - Jun 21st, 2008, 7:14pm
 
Oh sorry petax,

That issue is really very old for us here in California. In the late 60s and 70s the oil companies started drilling off the coast here and there were a few leaks that made it to shore.

los angeles times article which shows governor arnie opposed to the drilling

Quote:
He called California's coastline "an international treasure" that must be protected by a federal oil-drilling moratorium that has been in place for 27 years.

"We're serious about that, and we're not going to change that," he told reporters and business executives at BIO International, an annual biotechnology industry conference in San Diego.

<snip>

Sen. Dianne Feinstein, D-Calif., said lifting the drilling moratorium is an unnecessary risk that could allow unreliable oil rigs to be as close as three miles to California's beaches.

"Californians are all too familiar with the consequences of offshore drilling," Feinstein said in a statement issued Tuesday.

She cited the 1969 spill off the coast of Santa Barbara that killed scores of birds and marine mammals, and soiled miles of coastline with balls of tar.

"And we know this could happen again," Feinstein said.

There are 79 active oil and gas leases off California's coast in federal waters, 43 of which are producing, said John Romero, a spokesman with the Pacific office of the Minerals Management Service, part of the U.S. Interior Department. The others are tied up in court.

An estimated 10 billion barrels of undiscovered oil and nearly 17 trillion cubic feet of undiscovered natural gas lie three miles from California's coast, Romero said.

McCain wants to allow states to decide whether to explore their coastal waters for those undiscovered reserves, something Californians would be unlikely to support, said state Assembly Speaker Karen Bass.

"The idea of increasing offshore drilling off the coast of California I think is absurd, and I can't even imagine we would entertain that," the Los Angeles Democrat said.


This is a dead issue for us. I remember the spill. It ain't gonna happen. Arnie may be a good little Republican foot soldier, but he knows better than to go against the entire state that elected him.

Other states might pursue the idea. They might increase drilling there. But the idea that this will somehow save us from increased fuel costs is absurd anyway. To begin drilling tomorrow for offshore oil means that this oil will reach the refineries in about 2010, no sooner.
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Reply #24 - Jun 21st, 2008, 9:58pm
 
Thanks for that, I completely agree with the ban on off shore drilling, let that be said first. I trodden in enough oil and tar on the beach as a child to hate the stuff, getting scrubbed from my body and hair after being n the sea.  But (you knew the would be a but right?) typical frikkin 'merca. Not In My Back Yard, the rest of the world takes the shit for the gas guzzlers, much like the way 'Mercans like to do war.  Wink
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Reply #25 - Jun 21st, 2008, 11:41pm
 
petax,

You're absolutely right and a lot of those who are the most vocal also own two or three Hummers, several RVs, and create more pollution in one day than most people do all year. They have no qualms with the IMF and World Bank's decision to destroy the Amazon jungle in order to keep them nice and warm, but don't harm any resources in the US.

The hypocrisy of these people is sickening.
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Reply #26 - Jun 30th, 2008, 6:00am
 

EXTRA!!! EXTRA!!!
THIS JUST IN


[
American financial fiasco could take down world economy


intelligencer article

Quote:
Triple warnings this past week: the Royal Bank of Scotland fears a steep fall in the world stock market; the bank of all banks in the world, the BIS, Bank of International Settlements, in Switzerland, said that a worldwide depression is now a distinct possibility; Morgan Stanley, a leading American Investment firm, signaled similar pessimistic messages.

So what's happening out there? Frankly, all financial institutions are in deep trouble, and the reason is the American dollar. The situation is so dire that it's not going to make a hoot of difference who becomes the next president of the United States: it's beyond the power of the rulers of the American political and economic system to curtail severe damage to its entire economic enterprise. Neither Obama nor McCain can do anything to stem the disaster that will be fully employed by the end of this year.

Part of the cause is that the USA happens to be the most indebted nation on the planet and its people the least prepared to cope with peak oil and peak food. Even now Americans throw away up to 40 per cent of the food they buy, their high-powered and fuel-thirsty automotive park cannot be converted to more efficient vehicles for many years, while their exurban lifestyle makes car-sharing and mass transport impossible for most.

<snip>

The root of the problem is always money, basically the US dollar of which there are trillions too many in circulations, so many that its value is decreasing, and the world doesn't know what to do with them. It's this flood of money that drives up the price of all commodities, including oil, of course. Nobody wants more US dollars, unless its value increases.

But that can only happen when the US pushes up interest rates, which will cause the US economy to die within a few weeks, as the real estate market falls to zero by lack of affordable credit, interest on Adjustable Rate Mortgage loans skyrockets, drastically shrinking consumption, and corporate failures multiply exponentially and stock markets collapse.

No, higher interest rates are not the solution. However, to do nothing is not an option either, because soon nobody will accept U. S. dollars anymore.

Basically the US has lost the ability to govern its own economic policy. Thanks to its trillions of debts, it is now powerless to avoid disaster. No wonder banks are getting nervous.

The immediate consequence of America's economic collapse will be the end of the war in Iraq, because, suddenly, as the greenback disappears as the world currency, the US will be forced to live within its means. Since the war is the most costly of all its undertakings, the troops will abruptly go home.

Curiously the WMDs -- the weapons of mass destruction -- were not in Iraq: they are in the heart of America, right on Wall Street. Pity the veterans and the wounded; there will be no money to look after them -- no pensions, no jobs, no medical care.

Eventually a new financial system will emerge, but only after a period of tremendous turmoil and pain.


There are some basic assumptions here:

1. That Peak Oil is just around the corner. Right now that's very debatable. But even if we are not nearing the infamous peak of oil, that doesn't mean we are completely out of the woods. Even if there is plenty of oil left in the world, the recent wars debacles promulgated by the US are only exasperating the issue and if the US continues with their attack on Iraq, the end could come a lot sooner than this coming fall.

2. That people around the world will shun the dollar right away. This is not as easy as it sounds. The US has indeed the largest foerign debt of any nation, but we also import more than any other. If the US dollar collapses that quickly, most nations would be unable to sustain the level of production they currently enjoy. All their sales to the US would stop almost immediately and there is no other naton anywhere that could instantly take up the slack. Bottom line, the rest of the world would suffer from a large collapse in their own ecnonmy if the US dollar goes belly up.

3. That either McCain or Obama could possibly do something about this under slightly different parameters. That's total hogwash. The president of the US has not dealt with the national debt, or anything else in the financial world, for a very long time, almost 100 years. When the Federal Reserve came into existence in 1913, it immediately took over the economic policy of the nation. It has the power to regulate the dollar, either by printing tons of it, or raising interest rates on its borrowers so high that they choke to death. The US administration has had no say in our economic matters ever since.

Still, all in all, thie chance that this scenario could play out is rather high. I'd give it a possibility rating of 30% as of June 29, 2008. And if the US and/or Israel attack Iran, that rating would instantly jump to over 70%.
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Reply #27 - Jun 30th, 2008, 7:40am
 
Well you can't make an omlete without breaking eggs, bring it on  Smiley
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Reply #28 - Jul 10th, 2008, 6:07am
 
Nouriel Roubini on CNBC (Canadian TV station)

http://www.cnbc.com/id/15840232?video=789413982

8 minutes

Quote:
The US economy indeed entered a recession in February of 2008: Q1 GDP is misleading as monthly GDP figures – from MacroAdvisers – show falling GDP between February and April 2008; also falling employment now for six months in a row, falling durable and non-durable consumption, falling demand and supply in housing, financial sector, auto sector, consumer discretionary sector, etc. are consistent with an economic recession that started in Q1. When it looks and walks and quacks and ducks like a recession duck it is a recession. Of course the cheerleading bulls will rejoice to the news of a Q2 positive growth and argue that we will avoid a recession. The trouble is that we are already in a recession and the Q2 – and possibly Q3 – marginally positive headline GDP growth – will confirm what this author and others –Goldman Sachs, Merrill Lynch and a few others – have argued all along: a protracted U-shaped recession (rather than the short and shallow V-shaped recession of the consensus) may turn into a W-shaped recession if the tax rebate temporary drug boost GDP growth into marginally positive territory in Q2 and possibly Q3. By Q4 the negative headwinds hitting US consumers will dominate the effect of a disappearing tax rebate and the severity of the economic contraction will become clear again. And indeed in the last few weeks equity markets, credit markets and now even oil and commodity markets are starting to price the scenario of a protracted US recession and a sharp global economic slowdown.

So fasten your seat belts as it will be a bumpy ride for the US and the global economy and for financial market. The most wise and savvy Mohamed El-Erian agrees on that.


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Reply #29 - Jul 16th, 2008, 3:58am
 


Bloomberg TV Interview: Worst Financial Crisis Since the Great Depression and Worst U.S. Recession in Decades



rge monitor article


Quote:
I was on Bloomberg TV this morning being interviewed about financial markets, the economy and the upcoming testimony by Bernanke.

As I put it in the interview: ``This is a systemic financial crisis, there is no end to it,'' Nouriel Roubini, professor of economics and international business at New York University, told Bloomberg Television. ``It's a vicious circle between a contracting economy and greater credit and financial losses feeding on the economy.''

Regular readers of this blog are familiar with my views. But here is a summary and significant extended update of my views that this will turn out to be the worst financial crisis since the Great Depression and the worst US recession in decades…

This is by far the worst financial crisis since the Great Depression
Hundreds of small banks with massive exposure to real estate (the average small bank has 67% of its assets in real estate) will go bust
Dozens of large regional/national banks (a’ la IndyMac) are also bankrupt given their extreme exposure to real estate and will also go bust
Some major money center banks are also semi-insolvent and while they are deemed too big to fail their rescue with FDIC money will be extremely costly.
In a few years time there will be no major independent broker dealers as their business model (securitization, slice & dice and transfer of toxic credit risk and piling fees upon fees rather than earning income from holding credit risk) is bust and the risk of a bank-like run on their very short term liquid liabilities is a fundamental flaw in their structure (i.e. the four remaining U.S. big brokers dealers will either go bust or will have to be merged with traditional commercial banks). Firms that borrow liquid and short, highly leverage themselves and lend in longer term and illiquid ways (i.e. most of the shadow banking system) cannot survive without formal deposit insurance and formal permanent lender of last resort support from the central bank.
The FDIC that has already depleted 10% of its funds in the rescue of IndyMac alone will run out of funds and will have to be recapitalized by Congress as its insurance premia were woefully insufficient to cover the hole from the biggest banking crisis since the Great Depression
Fannie and Freddie are insolvent and the Treasury bailout plan (the mother of all moral hazard bailout) is socialism for the rich, the well connected and Wall Street; it is the continuation of a corrupt system where profits are privatized and losses are socialized. Instead of wiping out shareholders of the two GSEs, replacing corrupt and incompetent managers and forcing a haircut on the claims of the creditors/bondholders such a plan bails out shareholders, managers and creditors at a massive cost to U.S. taxpayers.
This financial crisis will imply credit losses of at least $1 trillion and more likely $2 trillion.
This is not just a subprime mortgage crisis; this is the crisis of an entire subprime financial system: losses are spreading from subprime to near prime and prime mortgages; to commercial real estate; to unsecured consumer credit (credit cards, student loans, auto loans); to leveraged loans that financed reckless debt-laden LBOs; to muni bonds that will go bust as hundred of municipalities will go bust; to industrial and commercial loans; to corporate bonds whose default rate will jump from close to 0% to over 10%; to CDSs where $62 trillion of nominal protection sits on top an outstanding stock of only $6 trillion of bonds and where counterparty risk – and the collapse of many counterparties – will lead to a systemic collapse of this market.
This will be the most severe U.S. recession in decades with the U.S. consumer being on the ropes and faltering big time as soon as the temporary effect of the tax rebates will fade out by mid-summer (July). This U.S. consumer is shopped out, saving less, debt burdened and being hammered by falling home prices, falling equity prices, falling jobs and incomes, rising inflation and rising oil and energy prices. This will be a long, ugly and nasty U-shaped recession lasting 12 to 18 months, not the mild 6 month V-shaped recession that the delusional consensus expects.
Equity prices in the US and abroad will go much deeper in bear territory. In a typical US recession equity prices fall by an average of 28% relative to the peak. But this is not a typical US recession; it is rather a severe one associated with a severe financial crisis. Thus, equity prices will fall by about 40% relative to their peak. So, we are only barely mid-way in the meltdown of stock markets.
The rest of the world will not decouple from the US recession and from the US financial meltdown; it will re-couple big time. Already 12 major economies are on the way to a recessionary hard landing; while the rest of the world will experience a severe growth slowdown only one step removed from a global recession. Given this sharp global economic slowdown oil, energy and commodity prices will fall 20 to 30% from their recent bubbly peaks.
The current U.S recession and sharp global economic slowdown is combining the worst of the oil shocks of the 1970s with the worst of the asset/credit bust shocks (and ensuing credit crunch and investment busts) of 1990-91 and 2001: like in 1973 and 1979 we are facing a stagflationary shock to oil, energy and other commodity prices that by itself may tip many oil importing countries into a sharp slowdown or an outright recession. Also, like 1990-91 and 2001 we are now facing another asset bubble and credit bubble gone bust big time: the housing and overall household credit boom of the last seven years has now gone bust in the same way as the 1980s housing bubble and 1990s tech bubble went bust in 1990 and in 2000 triggering recessions. And a similar housing/asset/credit bubble is going bust in other countries – U.K., Spain, Ireland, Italy, Portugal, etc. – leading to a risk of a hard landing in these economies.


So far, Nouriel has been very accurate about the current recession, the subprime loan fiasco, the credit crunch and other important aspects of our economy. I don't look for him to be wildly off with his latest forecast.
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Reply #30 - Jul 23rd, 2008, 10:38pm
 
'Wall Street got drunk' says Bush
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subtitles and clearer footage availiable on BBC site here (international):
http://news.bbc.co.uk/2/hi/americas/7522335.stm


And here he is doing stand-up comedy on the US economy:

http://news.bbc.co.uk/1/hi/business/7508098.stm

(sorry, i can't seem to embed the BBC videos on the topic page)

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Reply #31 - Jul 23rd, 2008, 10:50pm
 
Wall Street got drunk, huh??

Before he said there was no problem. Now, it's "Wall Street got drunk."

Well, I hope Wall Street can handle its hangover. I know millions of American families won't be able to handle losing their credit, their homes, their jobs and their livelihoods, but I'd sure hate to find out that Wall Street insiders lost a little money. That'd be painful.

But I'm sure that the government bailouts, which have topped $600 billion so far and will go way beyond $1 trillion before we're done, will be enough to see these poor chaps through the next few months. Let's just call this a shake out by the NWO to loosen those who weren't really part of the top 1%. They need to find their patch of ground alongside us bottom dwellers.
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Reply #32 - Jul 25th, 2008, 8:40am
 
George Green speaks on the Dollar Crash, Iran War, and WWIII.



http://www.disclose.tv/action/viewvideo/6199/George_Green_on_the_Dollar_Crash__I...

35 minutes

This guy is a former investment banker. I'm not really familiar with his bio, but if what he says here is true, watch out!!!

I do know the BIS exists. Here's their website:

http://www.bis.org/

This is ground zero in the banking and financing community. The Bank of International Settlements is just that. This guy is saying that China no longer accepts to be completely paid in dollars. Also, according to him, the German banks are no longer accepting euros printed in Spain, Italy and six other nations. Can our European partners here please verify that??

It looks like the war on Iran will definitely happen. He is saying before the end of September. He also says that it will unleash WWIII. That is also very possible.

If what this guy says turns out to be true, most of us will probably not even make it to December 21, 2012.

Shocked
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Reply #33 - Jul 30th, 2008, 4:12am
 
Two more US banks collapse as defaults soar


times online article from July 25, 2008

Quote:
Financial authorities in Washington spent last week securing a rescue deal for two insolvent mortgage lenders in Nevada and California amid the latest signs that America's banking crisis is deepening.

The collapse of the two banks - which had combined assets of about $3.6 billion (£1.8 billion) - came as a senior financial regulator told The Times that there was no end in sight for the crisis gripping the banking industry.

On Friday, Washington announced that it had forced the closure of First National Bank of Nevada and First Heritage Bank in California after they had found the first lender to have engaged in unsafe and unsound lending practices that had depleted its capital, and the second to be generally undercapitalised.

The closure of the banks comes within two weeks of the collapse of IndyMac, a big Californian mortgage lender, and raises new concerns that many more banks may be at serious risk of failure as America's financial crisis worsens.


I can remember when the sub-prime loans first became and issue. I knew several who worked for lending houses and they all assured me that the housing crisis was blown well out of proportion and any effects at all would be local and easily sustainable.

Now we are looking at 10 banks in the last 10 months that closed. It's no longer considered a sub-prime crisis, it's now a banking crisis. I sure hope that those who forecast a pleasant, rosy, sunny avenir are right, but the evidence is certainly not on their side at present.

The main thing holding up the American econony are foreign investors buying our treasury notes and holding them. If China, Japan, Great Britain start returing their treasury notes and investing their money elsewhere, the economy is doomed. But it wouldn't be in their best interest to do so. The US is a huge trading partner everywhere and is the most prominent trader for the vast majority of states out there. Destroying the US economy is like cutting off one's nose to spite one's face.
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Reply #34 - Aug 2nd, 2008, 3:51pm
 
Quote:
This is ground zero in the banking and financing community. The Bank of International Settlements is just that. This guy is saying that China no longer accepts to be completely paid in dollars. Also, according to him, the German banks are no longer accepting euros printed in Spain, Italy and six other nations. Can our European partners here please verify that??


Toeg,
from what I can see any reports/articles about the Germans rejecting Euros with prefixes from countries such as Spain et al, all lead back to this article from the Telegraph this year:

Quote:
Support for euro in doubt as Germans reject Latin bloc notes
By Ambrose Evans-Pritchard
Last Updated: 1:26am BST 13/06/2008

Notes printed in Berlin have more currency for bank customers who fear a 'value crisis'

Ordinary Germans have begun to reject euro bank notes with serial numbers from Italy, Spain, Greece and Portugal, raising concerns that public support for monetary union may be waning in the eurozone's anchor country.

Germany's Handelsblatt newspaper says bankers have detected a curious pattern where customers are withdrawing cash directly from branches, screening the notes to determine the origin of issue. They ask for paper from the southern states to be exchanged for German notes.

Each country prints its own notes according to its economic weight, under strict guidelines from the European Central Bank in Frankfurt. The German notes have an "X"' at the start of the serial numbers, showing that they come from the Bundesdruckerei in Berlin.

More on currencies
Italian notes have an "S" from the Instituto Poligrafico in Rome, and Spanish notes have a "V" from the Fabrica Nacional de Moneda in Madrid. The notes are entirely interchangeable and circulate freely through the eurozone and, indeed, beyond.

People clearly suspect that southern notes may lose value in a crisis, or if the eurozone breaks apart. This is what happened in the US in the Jackson era of the 1840s when dollar notes from different regions traded at different values.

"The scurrilous idea behind this is that if the eurozone should succumb to growing divergences, then it is best to cling to most stable countries," said the Handelsblatt.

"There are no grounds for panic. The Italian state is not Bear Stearns," it said.

Germans appear to be responding to a mix of concerns. Many own property in Spain or Portugal and have become aware of the Iberian housing slump.

A spate of news articles in the German press has begun to highlight the economic rift between the North and South of eurozone.

There is criticism of comments from Italian, Spanish, and French politicians that threaten the independence of the ECB, viewed as sacrosanct in Germany.

But the key concern appears to be price stability. Germany's wholesale inflation rate reached 8.1pc in May, the highest level in 26 years.

The cost of bread, milk and other staples has rocketed, adding to the sense that prices are spiralling out of control. Ordinary people are blaming the new currency - the "Teuro" - a pun on expensive - for their travails in the supermarket, even though the recent spike in farm goods and energy prices has nothing to do with monetary union.

Inflation touches a very sensitive nerve in Germany. Holger Schmeiding, from Bank of America, said the country had suffered two traumatic sets of inflation in living memory, first in Weimar in 1923 and then in 1948.

"People suffered a 90pc haircut on financial assets in the currency reform of 1948. The inflationary effects of two world wars were catastrophic," he said.

A group of leading German professors warned at the outset of EMU that the euro would tend to be weaker than old Deutsche Mark, and that it would fuel inflation over time. German citizens were never given a vote on the abolition of the D-Mark, which had become a symbol of Germany's rebirth after the war.

Many have kept a stash of D-Marks hidden in mattresses to this day. A recent IPOS poll showed that 59pc of Germany now had serious doubts about the euro.


Evans-Pritchard, according to wikipedia, is a long-time opponent of the EU's constitution and monetary union.

He used to piss off the clinton administration:
Quote:
During his time in Washington, his stories often attracted the ire of the Clinton administration, and on Evans-Pritchard's departure from Washington in 1997 a White House aide was quoted in George saying "That's another British invasion we're glad is over. The guy was nothing but a pain in the ass".[


 Source: http://en.wikipedia.org/wiki/Ambrose_Evans-Pritchard
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Reply #35 - Aug 2nd, 2008, 11:11pm
 
SC,

Thanks for checking that out. If it is really only one story, then the news could be very slanted. I would think that a problem of this magnitude would have rippling effects elsewhere. Why wouldn't news reporters in Spain, Italy, Portugal and elsewhere be hollering "unfair" at the Germans. And on another point, the West Germans allowed their East German brothers and sisters to integrate into the new Germany in the early 1990s. They paid huge subsidies to help their counterparts. Why would a smaller crisis seem so much more detrimental??

I realize that I may be only skimming the surface and ignoring pertinent facts that go much deeper, but if Germany was able to reunite in the early 90s with West Germany paying the lion's share of the cost, then what is the problem with these other countries today?? They certainly look much more solvent than did E. Germany back in the day.
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Reply #36 - Aug 6th, 2008, 8:28am
 
Barron’s Interview and Video with Roubini: “Yes, That's $2 Trillion of Debt-Related Losses”
Nouriel Roubini | Aug 2, 2008


barron's video with Nouriel Roubini


Barron's: Unfortunately for the rest of us, you have a pretty good track record. How much more misery lies ahead?

Roubini: We are in the second inning of a severe, protracted recession, which started in the first quarter of this year and is going to last at least 18 months, through the middle of next year. A systemic banking crisis will go on for awhile, with hundreds of banks going belly up.

Which banks, specifically, will fail?

I don't want to name names, but many, given the housing bust, will become insolvent. Their losses are mounting because they have written down only their subprime loans so far. They haven't started writing down most of their consumer-credit losses, and reserves for losses are much less than they should have been. The banks are playing all sorts of accounting gimmicks not to recognize them. There are hundreds of [billions] of dollars outstanding in home-equity loans that eventually could be worth zero, too.

So far, we have seen no recession in the technical sense: two consecutive quarters of negative growth in real GDP. Why not?

The definition of a recession isn't only two consecutive quarters of negative growth. The NBER (National Bureau of Economic Research) puts a lot of emphasis on things like employment, and employment has already fallen for seven months in a row. It also emphasizes income and retail and wholesale sales. Many of these things are declining.

Maybe the recession started in January; if you look at the data on gross domestic product on a monthly basis between February and April, GDP was falling. Saying this is not a recession is just a joke. Maybe instead of a 'U' recession and recovery, it will be a 'W,' with a rebound in the second quarter. But by the third quarter, the effect of the government's tax rebates is totally gone, because other forces on the consumer are more persistent and negative.

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Reply #37 - Aug 7th, 2008, 11:54pm
 
FINANCIAL TIMES OF LONDON
THE CREDIT DISASTER ONE YEAR IN


http://www.ft.com/cms/93ece7c0-07af-11dd-a922-0000779fd2ac.html?_i_referralObjec...


3 minutes

Get those tin hats ready

Here is an interactive guide to the subprime meltdown one year ago.

http://media.ft.com/cms/cc2eb1e8-77fb-11dc-8e4c-0000779fd2ac.swf
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Reply #38 - Aug 12th, 2008, 10:10am
 

The inevitable collapse of the dollar


September 14, 2007

Summary:
Americans are living beyond their means and Asia is currently financing that. But eventually the Asians/Europeans will stop financing the USA and then the bubble will burst. Also check out the 1-minute video which I'm responding to for a quick explanation



8 minutes

The opinions of those economic experts are right on and to the point. The dollar will eventually collapse. What the US is doing essentially is to hasten that event.
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Reply #39 - Sep 14th, 2008, 10:11am
 
Jim Rogers : Let the Fannie and Freddie go bancrupt


Added: July 15, 2008

Jim Rogers in interview with Bloomberg said that government has no authority to buy Fannie and Freddie stocks and should have allowed them to go under. He said also that Paulson and Bernanke hear only Wall Street but don't care about inflation and the rest of Americans.
full interview: http://www.bloomberg.com/avp/avp.htm?...






10 minutes

This interview dates from mid-July of this year, yet it is still as valid.
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Reply #40 - Sep 17th, 2008, 11:51pm
 
What’s the new term from Roubini?? United Socialist State Republics of America!! Socialism when the bankers are in trouble, free market when it comes to ripping off the tax payer. And the sheeple still don’t get it.
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Reply #41 - Sep 18th, 2008, 4:11am
 
Essay: The Faces of the Financial Crisis


The U.S. financial system faces a grave crisis as investment giants teeter on the edge of collapse. These institutions aren't merely made of paper and percentages, though. They're led by people - people who've made some rotten decisions in recent years. Whereas we'll hear much in the coming weeks about the federal regulators who are scrambling to avert a disaster, we should also hear about the CEOs who got very rich while their firms crumbled.



http://link.brightcove.com/services/link/bcpid1463341016/bctid1799837843
4 minutes

WARNING:

Don't watch this video whiile eating. This video can induce choking.
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Reply #42 - Sep 24th, 2008, 5:28am
 
A Market-Based Mindset


Recently, the Bush administration proposed what could be the largest government bailout of private industry in the history of the United States. The architects of the proposal, Treasury Secretary Henry M. Paulson Jr. and Federal Reserve Chairman Ben S. Bernanke, will testify before Congress. ANP caught up with Charlie Cray, Director and Policy Analyst at the Center for Corporate Policy, who spoke about the philosophical underpinnings of the current economic meltdown and his predictions for the future.
Category:  News & Politics




5 minutes
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Reply #43 - Sep 26th, 2008, 3:22am
 

The End Of Free-Market Fundamentalism


http://link.brightcove.com/services/link/bcpid1463341016/bctid1817750851

People, there is almost no discussion of who got us here and why. The elite are squashing us like little bugs, and we have to hear this slop. This is sick. No one wants to discuss the 800-pound gorilla in the room, basically because he's their boss.
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Reply #44 - Sep 26th, 2008, 8:54am
 

The crisis according to Jim Rogers.
These videos are actually several months old, but he knew back then what was going to happen/



9 minutes




9 minutes
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Reply #45 - Sep 28th, 2008, 9:01am
 
Peter Schiff - Ron Paul Advisor - Collapse of the Dollar



Peter Schiff tells it like it is! Government intervention has created the problem, it is not the answer. Schiff advises us to get out of the dollar.




6 minutes

It looks like this could be the end. What they are saying about the worthlessness of the dollar is correct. The German did the same thing in the 1920s and the result was the total collapse of the Deutsch Mark. The world can no longer prop up a sick brat like the US which uses THEIR money to start illegal wars all over the place.

The decoupling of the world's economies from the dollar is the next big step in all of this. This will cause hyperinflation and the complete destruction of the US dollar as well as the US economy.
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Reply #46 - Oct 1st, 2008, 1:30am
 
The Real News Network


September 30, 2008

Bailout denied: What now?
Conn Carroll and Sam Greenfield debate the nature of the crisis and government's role in resolving it.

Immediately following the announcement that the US House of Representatives had narrowly rejected the landmark $700 billion bailout proposal, Senior Editor Paul Jay talked with Conn Carroll and Sam Greenfield to get their reactions. They discussed the causes and significance of the financial crisis as well as their opinions on what an appropriate government reaction to the crisis ought to look like.

Bio
Conn Carroll is the Assistant Director for The Heritage Foundation's Center for Media and Public Policy and he serves as editor of The Foundry, the think tank's rapid-response policy blog. Before joining Heritage in 2007, he worked at Washington's premier political tip sheet The Hotline as a Senior Writer.

Sam Greenfield is the morning host on 1160 WVNJ, serving New York, New Jersey and Connecticut. Prior to this, he co-hosted "Pork", an hour-long daily television show discussing government fraud and waste which aired on the NBC cable network "America's Talking".





13 minutes

To those less familiar with the above entities, the Heritage Foundation is a conservative think tank. This means that, generally, they favor less government control, less regulation, and more freedom for the market to fluctuate as it sees fit. Yet they seem to be for this bailout even though it has nothing to do with market fluctuation.

I don't know the other guy. He sounded fairly knowledgeable though.
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Reply #47 - Oct 1st, 2008, 8:20am
 
misandrist wrote on Jun 30th, 2008, 7:40am:
Well you can't make an omlete without breaking eggs, bring it on  
Well they brought it on, now what do you think misandrist?  Cheesy
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Reply #48 - Oct 6th, 2008, 3:16am
 
Last days of the American Republic?


Chalmers Johnson: USA must cut back on military spending and build green infrastructure or face ruin Pt2




10 minutes
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Reply #49 - Oct 12th, 2008, 9:06am
 
Former economist of the world bank.... speaking out....


From March, 2008, on Democracy Now!!

Two authors... "Linda Bilmes" Joseph Stiglitz, former economist, both authors of "The Trillion Dollar War" tell all, about the upcoming recession, Where your money is going.... just listen, this is so asonite~




5 minutes

trivia: This is almost freaky, but this is the second time I've heard the name, Joseph Stiglitz. The first time was earlier this evening when somebody who PM'd me on another forum told me about a 90-year-old guy who was in the Insurance business who he met over the phone once. He was helping the old guy get some insurance and in the interim they'd talk small talk.

Anyway, there came a point where the powers that be requested a cosigner before inking the deal. The old man had been raving about h is son all this time, and immediately offered his son to be the cosigner. His son was Joseph Stiglitz.

Shocked
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Reply #50 - Oct 13th, 2008, 8:46am
 
Goldman Sachs Bribed Senate To Pass Bailout Bill


Complete CONTRIBUTION LIST:
http://www.washingtonyourefired.com/g...

How much bribe money does it take to transfer $700 Billion taxpayer dollars to Wall Street's elite?

GOLDMAN SACHS CONTRIBUTIONS:
Obama, Barack (D-IL) $691,930
Clinton, Hillary (D-NY) $468,200
Romney, Mitt (R) $229,675
McCain, John (R-AZ) $208,395
Himes, Jim (D-CT) $114,748
Giuliani, Rudolph W (R) $111,750
Dodd, Christopher J (D-CT) $105,400
Edwards, John (D) $66,450
Specter, Arlen (R-PA) $47,600
Emanuel, Rahm (D-IL) $32,950
Reed, Jack (D-RI) $30,100

How much money did your Representative get from Big Bankers to look the other way and pass a bill that the American people clearly do not want?

HELP SPREAD THE WORD...
http://www.WashingtonYoureFired.com




6 minutes
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Reply #51 - Oct 19th, 2008, 9:12am
 
NWO summit meeting with BUSH to discuss the USA's financial takeover

Bush meets with European leaders on financial crisis.

French President Nicolas Sarkozy and European Commission President Jose Manual Barroso will be talking about the economy with President Bush today.

The two European leaders are making a stop at Camp David on their way home from a summit in Canada.

The White House says the meeting isn't expected to produce any new policy decisions, nor does it have to do with a future meeting between G-8 leaders.

Instead the focus will be on coordinating efforts toward financial stability. That includes subjects such as bank disclosures, accounting rules at credit rating agencies, capital standards and asset valuation.

NEW USA CURRENCY IS THE AMERO

buy some here:
http://www.amerocurrency.com/buyamero...





7 minutes

Fe-Fi-Fo-Fum, I smell the hand of the elitists' bum.
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Reply #52 - Oct 20th, 2008, 5:18pm
 
toeg wrote on Sep 26th, 2008, 3:22am:
Free-Market Fundamentalism


Which is one and same as Protestant Cristofascist fundamentalism

Quote:
who got us here and why:


Elite Anglo-Saxon Cristofascist yanks

http://www.theocracywatch.org/rr_economics.htm

THIS is the economic mess the USA has imposed upon the world. THIS is capitalist globalization, and the mess we all got into(though we never wanted it to begin with-no thank you to the IMF, World Bank, WTO, and of course, U.S. military, etc.).
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Reply #53 - Oct 24th, 2008, 8:04am
 


BB,

While I agree as to the source of the problem, the elitists robber baron bankers here in the US, I must also blame every other country that just hung on for the ride. To accept America's garbage financial system and prolong it by buying these toxic portfolios, much of the rest of the world bought the "good times" of the US market, as well s the "bad times." They supposedly have some of the best economists in the world throughout Europe and much of the rest of the world. I cannot believe that a few economists, Nouriel Roubini and Max Keiser among others, knew more than ALL of the best ecnonmic minds throughout the world who okayed the purchasing of our toxic waste.

Very few countries had the nerve to stand up to the US and not accept an overwhelming amount of worthless credit packages.
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Reply #54 - Oct 25th, 2008, 7:19am
 
The federal reserve caused the 700 billion dollar bailout and economic crash


The federal reserve caused the 700 billion dollar bailout. Share this video with everyone you know. The Rothschilds and the Bank of England, and the London banking houses which ultimately control the Federal Reserve Banks through their stockholdings of bank stock and their subsidiary firms in New York. The two principal Rothschild representatives in New York, J. P. Morgan Co., and Kuhn,Loeb & Co. were the firms which set up the Jekyll Island Conference The Federal Reserve was created with no constitutional authority in 1913, the Fed prints money out of thin air and loans it to the U.S. treasury at interest. This can only lead to one outcome: debt. Currently, the Federal Reserve is printing billions of dollars to bail out Wall Street while destroying the middle class and the dollar with inflation. If our country wants a sound and transparent monetary system, we need to abolish the Federal Reserve




2 minutes
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Reply #55 - Oct 25th, 2008, 7:48pm
 
toeg wrote on Oct 24th, 2008, 8:04am:
BB,

While I agree as to the source of the problem, the elitists robber baron bankers here in the US, I must also blame every other country that just hung on for the ride. To accept America's garbage financial system and prolong it by buying these toxic portfolios, much of the rest of the world bought the "good times" of the US market, as well s the "bad times." They supposedly have some of the best economists in the world throughout Europe and much of the rest of the world. I cannot believe that a few economists, Nouriel Roubini and Max Keiser among others, knew more than ALL of the best ecnonmic minds throughout the world who okayed the purchasing of our toxic waste.

Very few countries had the nerve to stand up to the US and not accept an overwhelming amount of worthless credit packages.


Well, this may offer hope the E.U. has realized this mistake and is taking quick steps to prevent the yank financial toxic waste from dragging the E.U. down to oblivion with the USA Titanic:

Asia and Europe join hands to tackle challenges
http://english.peopledaily.com.cn/90001/90780/91421/6521097.html
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Reply #56 - Oct 25th, 2008, 8:18pm
 
And it's about time.

Germany is now starting to stand up as well. The yoke of imperialist yankee slavery is slowly unravelling.
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Reply #57 - Nov 8th, 2008, 2:47am
 
11/3/2008 -Peter Schiff On Squawk Box:Economic Impact Of Obama Victory






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Reply #58 - Nov 8th, 2008, 3:08am
 
Robert Shiller: 'More tough times ahead for the US'





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Reply #59 - Nov 24th, 2008, 12:50am
 


Fifteen of the Most Expensive Projects in US History. The $700 billion bailout BY ITSELF ranks #3


Big Budget Events
If you are dumbfounded by the amount of money the federal government is pouring into the private sector to ease the nation's financial crisis, it's worth a look at how much Uncle Sam has spent on other major projects and historic events in the past, such as wars, bailouts and engineering marvels.

Thus far, only two items surpass the $700 billion allocated to the government's main rescue fund, what's known as the Treasury Dept.'s TARP program. Other expenses and/or commitments, from Federal Reserve lending and guarantees to FDIC insurance fund losses to complex financial market mechanism, put the total cost at some $3.8 trillion (as of Oct. 23). Click ahead for a big-budget ride through time.

Hoover Dam
Original Cost: $49 million
Inflation Adjusted Cost: $782 million

Panama Canal
Original Cost: $375 million
Inflation Adjusted Cost: $7.9 billion

Gulf War I
Original Cost: $61 billion
Inflation Adjusted Cost: $98 billion

Marshall Plan
Original Cost: $12.7 billion
Inflation Adjusted Cost: $115.3 billion

Louisiana Purchase
Original Cost: $15 million
Inflation Adjusted Cost: $217 billion

Race to the Moon
Original Cost: $36.4 billion
Inflation Adjusted Cost: $237 billion

Savings & Loan Crisis
Original Cost: $153 billion
Inflation Adjusted Cost: $256 billion

Korean War
Original Cost: $54 billion
Inflation Adjusted Cost: $454 billion

The New Deal
Original Cost: $32 billion (Est)
Inflation Adjusted Cost: $500 billion (Est)

Gulf War II / War on Terror
Original Cost: $551 billion
Inflation Adjusted Cost: $597 billion

Vietnam War
Original Cost: $111 billion
Inflation Adjusted Cost: $698 billion

NASA (Cumulative)
Original Cost: $416.7 billion
Inflation Adjusted Cost: $851.2 billion

World War II
Original Cost: $288 billion
Inflation Adjusted Cost: $3.6 trillion

special thanks to Dees for his great graphics skills   Smiley
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Reply #60 - Dec 1st, 2008, 3:28am
 
Peter Schiff talking with Socialists on CNN 11/20/08


Ron Paul's 2008 economic advisor Peter Schiff trying to explain the problem with our economy.



10 minutes

Peter Schiff is right about the government intervention into business. The automakers need to die a painful death. They were structured incorrectly. However, Peter has it wrong (in fact they all do) that it's because of the unions that they companies are insolvent. That is patently false.

The unions and their effect on society has been overwhelmingly positive and history shows that those countries with strong unions have a higher living of standard than others. In other words, Europe.

The automakers failed because the government pushed them to fail. By giving the incentive to people to buy gas guzzling crap like the Hummer and others, the government promoted the concept that big is better, greed is good, and that they more obnoxious you got, the more tax breaks you're going to get. Now these automakers are stuck making cars for a citizenry that no longer wants them nor can afford them. That isn't the fault of the industry, per se. The government incentivized the SUV industry and made automakers go in that direction. Those that didn't make yachts on four wheels died.

The automakers and their idiocy need to die a painful death. They need to go the way of the dinosaur. But the workers SHOULD NEVER be left out in the cold to fend for themselves just due to the policies of stupid people in the boardroom and the White House. We need to help these people get back into the work place as soon as possible and if the government has to make projects like the TVA and Hoover Dam, so be it.
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Reply #61 - Dec 3rd, 2008, 10:07pm
 
Waiting for the other shoe to drop.




waiting for the other shoe to drop on the heads of pinwheel accountants who have no clue what is going on around them, or something

Quote:
What is the other shoe, or is it other shoes? The other shoes are the states which have enormous financial problems. Some problems which may have not been exposed yet. In Maryland, the state in which INO.com calls home, we have a $20 billion shortfall in the state’s entitlement program. We also have property values dropping and more and more people becoming unemployed. Revenues to the state in property and sales taxes are diminishing rapidly, making it harder and harder for the state to stay in the black.

In California, the problem is even greater and we are not talking about entitlements, we’re talking about just running the state. Governor Schwarzenegger was on TV today saying that the shortfall in California is going to be somewhere between 11 and 38 billion dollars in the coming year. This is a huge shortfall for California to make up given the economy and it illustrates just how fast things are going south.

We have to remember that the states are run by politicians, most of whom have never had to make a payroll. For them cutting back and laying off state employees is almost unheard of. But that’s what’s going to happen to a fair number of states. That situation will only exacerbate the problem we are now facing. Clearly the states cannot continue to raise property tax, or even sales tax as it will push the economy even further down the drain.

So what’s going to happen?
For the past 20 years, the majority of U.S. tax payers have been gorging on easy money. As long as everybody could keep borrowing, it did not seem to be a problem.  But then… the bubble burst.

Since the early ’80s, the savings rate in the US has continued slipped every year. Fewer and fewer Americans are willing (or able) to save money making the American Dream only possible through credit cards which created a housing market gone wild.

With no savings and a national debt of over $170,000 for every man, woman and child living in the United States, it’s now time to pay the piper, or in this case China. I am afraid that we’re all going to be learning some very difficult and hard lessons about money in the future. When people say, “oh this is like the ‘87 crash,” don’t believe it. This is very serious, you’ve got a collapsing housing market, you’ve got unemployment rising you have the Government clueless in what to do or who to point the blame at.

The states who spent themselves silly in the last few years are seeing their revenue and paycheck from the people getting cut dramatically. All in all, I see rough seas ahead. It doesn’t quite matter if the big three get funding or not, because the die has been cast for a very slow economy in 2009. I do not see the world economy jumping out and starting up again anytime soon.

Now, I know all of this sounds very ominous, but we are waiting for the other shoe to drop. Once the states with budget shortfalls cry for help, I’m sure that the news will be saturated with this new problem.


Here is a very instructive video about the recent events with the US stock market, if you are interested. He does a point by point analysis while you wait.

This is about a week old, but still very informative:

The Dow Crashes
http://broadcast.ino.com/education/the_dow_crashes/
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Reply #62 - Dec 11th, 2008, 1:59am
 
China: Carpe Diem! - Merk


Quote:
China must give its people a vision for the future. The time to act is now. Unlike the U.S., China, with its $2 trillion in reserves, has the flexibility to act. If China does not act now, we may face the same challenges in a decade, but China may then not be able to rescue its economy.

The only leadership that seems to be emerging is from the Federal Reserve determined to print not just billions, but trillions of dollars to provide the backstop to all economic activity; at the same time the policies are an insult to any potential buyer of securities the Fed has targeted, as the intervention keeps yields artificially low. As China has been one of the premier buyers of these securities, namely Treasury bonds and agency securities, this is a clear message by the Fed that Chinese investments to finance U.S. deficits is no longer welcome; why else would the Fed depress the return for potential buyers during a time when unprecedented amounts of debt need to be raised? While we are provocative in our allegation, it is at best an unintended consequence, at worst highly deliberate. Intentional or not, it may coerce Asian buyers of U.S. debt to reduce their holdings to allow the U.S. dollar to weaken.


December 9, 2008, Merk article and vid.




Looks like China may be bailing soon on US treasury bonds as well as currency connections. If they follow through on this, the US dollar won't last 12 months.

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Reply #63 - Dec 28th, 2008, 1:33am
 
Why Wont The Bail Out Work? MUST SEE!

Voters are rightly furious at the proposal to spend $700,000,000,000 that the government doesn't have to bail out Wall Street bankers who created the current economic crisis in the first place. But why then aren't we concerned about the trillions of dollars the Federal Reserve is pumping into the system? Or the trillions missing from the Pentagon? Or the quadrillion dollar derivatives bubble.



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Reply #64 - Jan 8th, 2009, 10:46am
 
Tax Havens: The Hidden Hand in the Financial Crisis


Quote:
The financial crisis seems as if it emerged from nowhere and struck as hard and fast as lightning. How did so many financial institutions crumble with so little warning? There are many reasons, but one that has not been given much attention is how tax havens helped enable the mess — and how several of the big companies that have received billions of bailout dollars were also the most active in the shady world of offshore finance.




5 minutes

This isn't the only problem, but it sure is among the top 5.
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Reply #65 - Jan 10th, 2009, 11:31am
 
China tries settling trade with yuan instead of dollar



Yuan-Settlement Test to Start


gata article

From Shanghai Daily
Shanghai, China
Wednesday, January 7, 2009

http://www.shanghaidaily.com/sp/article/2009/200901/20090107/article_387...

Quote:
China's central bank said yesterday that it plans to implement a pilot program that would settle overseas trade with the Chinese currency instead of the US dollar.

The People's Bank of China will expand financial cooperation with overseas economies and "properly deal with the global financial crisis," the central bank said.

"We'll actively join international efforts to tackle the global financial crisis while safeguarding national interests," the central bank said.

It pledged to implement a pilot program that the State Council announced last month.

China will allow the yuan to be used for settlement between Guangdong Province and the Yangtze River Delta, China's two economic powerhouses, and the special administrative regions of Hong Kong and Macau, according to the central bank.

Meanwhile, exporters in the Guangxi Zhuang Autonomous Region and Yunnan Province in southwestern China will be allowed to use the yuan to settle trade payments with members of the Association of Southeast Asian Nations.

Those moves are expected to facilitate overseas trade, as Chinese exporters might face losses if they continue to be paid in US dollars, analysts said.

The dollar's exchange rate has become more volatile since the global financial crisis began.

The central bank said it will make the exchange rate of the yuan more flexible and keep it "basically stable on a reasonable, balanced level."

There has been speculation that the yuan's appreciation will slow down, which would help Chinese exports maintain price advantages in overseas markets.


Just one more nail in the coffin of the US dollar. The snowball effect is in process here. This will be a slow start that gradually picks up momentum until enough nations decide that the little pain left to suffer with the toxic US dollar is bearable. Then, goodbye Ms. American Pie.
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Reply #66 - Jan 28th, 2009, 10:11am
 
US Economic Implosion





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Reply #67 - Feb 10th, 2009, 9:07am
 
Marc Faber "U S will default on debt or enter hyperinflation" 02-05-09

Marc Faber on U.S. Debt and Economy

We're using a new school of economic theorists called the Zimbabwe School of Hyperinflation. Mugabe is head master.




3 minutes


A day later:


11 minutes
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Reply #68 - Feb 22nd, 2009, 3:23pm
 
The Worst Economic and Financial Crisis Since the Great Depression Reveals the Weaknesses of the Laissez Faire Anglo-Saxon Model of Capitalism


Here is a 16 minute video from last Friday, February 20 on Bloomberg news.

http://www.bloomberg.com/avp/avp.htm?clipSRC=mms://media2.bloomberg.com/cache/vc...





the worst economic and financial crisis since the great depression

Quote:
It is now clear that this is the worst financial crisis since the Great Depression and the worst economic crisis in the last 60 years. While we are already in a severe and protracted U-shaped recession (as the deluded hope of a short and shallow V-shaped contraction has now evaporated) there is now a rising risk that this crisis will turn into an uglier multi-year L-shaped Japanese style stag-deflation (a deadly combination of stagnation, recession and deflation). The latest data on Q4 2008 GDP growth (at an annual rate) around the world are even worse than the first estimate for the US (-3.8%): -6.0% for the Eurozone; -8% for Germany; -12% for Japan; -16% for Singapore; -20% for Korea. The global economy is now literally in free fall as the contraction of consumption, capital spending, residential investment, production, employment, exports and imports is accelerating rather than decelerating.

To avoid this L-shaped near-depression a strong, aggressive, coherent and credible combination of monetary easing (traditional and unorthodox), fiscal stimulus, proper clean-up of the financial system and reduction of the debt burden of insolvent private agents (households and non-financial companies) is necessary in the US and other economies.

Unfortunately, the Eurozone is well behind the US in its policy efforts as: a) the ECB is behind the curve in cutting policy rates and creating non-traditional facilities to deal with the liquidity and credit crunch; b) the fiscal stimulus is too modest as those who can afford it (Germany) are lukewarm about it and those who need it the most (Spain, Portugal, Greece, Italy) can least afford it as they already have large budget deficits; c) there is lack of cross-border burden sharing of the fiscal costs of bailing out financial institutions.

The U.S. has done more (with its aggressive monetary easing and large fiscal stimulus putting it ahead) but two key elements are key to avoid a near-depression and still seriously missing: a proper clean-up of the banking system that may require a proper triage between solvent and insolvent banks and the nationalization of many banks, even some of the largest ones; and a more aggressive and across-the-board reduction unsustainable debt burden of millions of insolvent households (i.e. principal reduction of the face value of the mortgages, not just mortgage payments relief).


Roubini is the only major economist I've found who correctly predicted the current crisis AND the fact that the US dollar would not immediately melt. He is much more in tune with the global economies than nearly everyone else. He says relief is on its way now, and even Max Keiser is now saying that according to Doctor Copper, there is finally a trend turning around.

This makes sense. Let's not forget that all of this is a drama that has already been written, scripted and put into motion. The elite know what the end will look like, we don't. However, Roubini's assessment looks like the plausible continuation of the play that we have been watching for the past several years.
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Reply #69 - Feb 22nd, 2009, 11:19pm
 
It most certainly is an example o failed Anglo-Saxon economics:

Calvinism, Capitalism, Conversion and (Gulags)
http://www.publiceye.org/magazine/v18n3/berlet_calvinism.html

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Reply #70 - Mar 2nd, 2009, 1:08am
 
TRNN -

March 1, 2009
Taking on the banking cabal


Engdahl: President Obama has left intact a brain dead banking system that is out of control.

Quote:
Speaking about President Obama's stimulus package and newly announced budget, William Engdahl says the fundamental causes of the economic crisis were missed. Until [President] Obama reinstates Glass-Steigel restraints on banking which were repealed by the Clinton administration in 1999 and begins to re-regulate the financial system, there will not be a flow of healthy credit into the healthy economy.




12 minutes

There is one area that is not taken into account here that is crucial to the entire debate:

WHY ARE WE NOW IN THIS CRISIS???
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Reply #71 - Mar 17th, 2009, 5:38am
 
How the world pimps America


Quote:
The US Treasury will borrow no less than one trillion dollars from the developing world in 2009. It will need even more in 2010. Pepe Escobar argues the US is indeed in a privileged position: not only it unleashes a global financial crisis, it then sucks up money from all over the world, based on the fact that the US in fact remains the "manager" of choice of global capitalism. As if this was not hardship enough for the developing world, it now also has to cope with the resurgence of the discredited World Bank and IMF. A certain Tim Geithner has been through this before - during the Asian financial crisis in 1997/1998 - and then he got it all wrong.




Hey, check out his trotski quote at the end!!

I hadn't known this beforehand, but he was assassinated in Mexico City, Coyocán to be exact. I remember going down a somewhat busy street and my brother-in-law point it out.



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Reply #72 - Mar 17th, 2009, 5:08pm
 
We need to keep gatting the word out in the E.U., Asia as well as the developing world-

DIVEST FROM BRETTON WOODS
http://www.wbbeurope.org/
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Reply #73 - Mar 18th, 2009, 9:49am
 
BB,

You need to stick around more. You have a wealth of great sites to bring to the table. That one has, so far, yielded 6 other sites I've saved to my favs.

The Bank of the South




One year ago, on December 9th, 2007, representatives from Argentina, Bolivia, Brazil, Ecuador, Paraguay, Uruguay, and Venezuela met in Buenos Aires, Argentina, to launch “el Banco del Sur” or the Bank of the South (BoS). With the creation of the Bank, the leaders of Latin America envisaged a new development institution to help promote growth and tackle poverty.


Quote:
Real GDP in South America grew by over five percent annually between 2005 and 2007, and is expected to ebb only slightly in 2008 as a result of the financial crisis that began in the United States. As a result, in early 2006, Argentina and Brazil paid their remaining IMF loans ahead of schedule, and in July 2006, Uruguay announced a  900 million payment to the IMF, which amounts to half of their debt to the institution. Oil-rich Venezuela, which recently repaid its World Bank loans five years ahead of schedule, severed ties with the IMF and World Bank in May 2007. The IMF, as a result, has lost nearly all of its influence in South America with lending falling to under $50 million, less than 1 percent of its global loan portfolio.


halifax initiative article
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Reply #74 - Mar 19th, 2009, 5:08pm
 
VIVA CHAVEZ!

VIVA VENEZUELA!

Another reason I'm urging everyone in E.U. and elsewhere to invest in Venezuelan gold coins(I sent P.M.s with details).

My time online is VERY LIMITED so I only post when time (seldom)permits.
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Reply #75 - Mar 22nd, 2009, 1:32pm
 
David Walker: Plan B Move to Vancouver


Quote:
Former Comptroller General for the United States says that he believes things can be turned around economically with a lot of work, or Plan B move to Vancouver.


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Reply #76 - Mar 26th, 2009, 9:07am
 
"World Currency in 20 years"? CNBC guest


Quote:
Ray Attrill from Forecast Australia talks about the chances of a single world reserve currency soon, or when he sees this new global currency coming into place.




I think he's a bit long, but his reasoning is sound.
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Reply #77 - Mar 28th, 2009, 1:50am
 
G20 Meltdown?




A very poignant look at how the elitists operate.
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Reply #78 - Apr 16th, 2009, 8:18am
 




Road to Ruin: Burned by Brokers

Quote:
Economists, politicians, and pundits refer to "toxic assets" as if they are some unspeakable stew bubbling in a barrel behind an old warehouse. But "toxic assets" are actually mortgages and, by extension, houses and the people who live in them. Sandra Berrios is one of millions facing the prospect of ballooning loan payments forcing her and her family from their home. The bank that lent her the money is getting hundreds of millions in TARP money, but the federal dollars flowing to the bank show no sign of trickling down to Sandra's level.




Americans don't even know about this practice:

Look up NINJA loans and predatory lending practices.
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Reply #79 - May 2nd, 2009, 4:57am
 
Go short the US housing market! New Shiller ETF starts trading UMM DMM


Quote:
U.S. residential real estate is the largest unsecuritized asset class in the world. MacroShares Major Metro Housing will open up this large and important asset class to the global investor community.

Robert Shiller founder of the Case Shiller Index introduces his new Short and Long US Housing Market ETFs

UNDERLYING: 3x returns on the change in the Case Shiller Composite 10 Index

MacroMarkets Major Metro Housing ETFs start trading on the NYSE ARCA May 11th, 2009

IPO Over-subscribed to the total amount of $1 billion through an auction process.

Full roadshow http://www.retailroadshow.com/






Grin Cheesy Cheesy

Wow, Wall Street wastes no time in finding a replacement for their other failed schemes. mainly subprime loans and credit card fraud. This way, any monies still in the hands of the serfs can now be taken by the elite through this future scandal.
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Reply #80 - May 12th, 2009, 2:28am
 
ROAD TO RUIN: Mortgage Fraud Scandal Brewing


Quote:
Criminal fraud may be the most underreported aspect of our current financial crisis. In this "Road to Ruin" report, former subprime lenders from Ameriquest, once the country's largest lender, describe a system rife with fraud. They describe how a "by-any-means-necessary" policy pushed employees to cut corners and falsify documents on bad mortgages and then sell the toxic assets to Wall Street banks eager to make fast profits.




And people still try to blame the honest, hard-working stiff who slaves away for next to nothing trying just to get a little ahead. Those people were ruined in the millions while Wall Street wined and dined on their misery. Sick economy from sick minds.
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Show the link to this post Re: Crisis in Chartland - US Economy Failing
Reply #81 - May 13th, 2009, 8:34pm
 
The Impact of the Chrysler Bankruptcy




Quote:
RGE Analyst Team | May 12, 2009

On April 30, Chrysler filed for Chapter 11 Bankruptcy protection from its current creditors.  As such, Chrysler will be able to operate as a going concern, while the company renegotiates its debt structure and other obligations.  The U.S. government has described Chrysler’s action as a ‘prepackaged surgical bankruptcy’,  Cheesy (Where's Dr. Frankenstein when you need him??) in which it hopes that the company will be able to exit the bankruptcy process within 30-60 days.  If Chrysler achieves this, then it will emerge with a new global partnership with the Italian based Fiat. Instead of cash, Fiat will provide the equivalent of billions of dollars in R&D related investments for a 35% stake in the new Chrysler.  However, many experts think that a quick trip into bankruptcy might be unrealistic.

In the administration’s view, cost cuts, implemented by Cerberus and the new management brought in by Bob Nardelli, who cut into Chrysler’s R&D budget and new product development, left Chrysler, the smallest of the Detroit automakers, with a very thin line up of new vehicles.  The Obama administration set partnering with Fiat as a precondition for any further government assistance.  Nevertheless, Chrysler was unable to avoid the bankruptcy process, because some creditors balked at the terms being offered in the proposed debt to equity swap by the government.

The marriage between Fiat and Chrysler is based on harsh realities, as evidenced by continuing layoffs in Chrysler’s bloated U.S. and Canadian operations, but it seems to be a symbiotic relationship, aimed to help both car makers survive the new realities of an even more competitive landscape.  Moreover it is a reflection of the considerable overcapacities in the global auto sector which may require further consolidation both in several national and international markets.

The short term outcome of Chrysler’s bankruptcy filing may come to determine the path for General Motors, if not the entire U.S. auto industry. If bankruptcy proceedings for Chrysler go as the company and the U.S. government have planned, then Chrysler’s filing may very well turn out to be just a test case before the bankruptcy filing of GM itself.  GM has until the end of May to convince the government that it has a viable business plan to restructure outside of an official bankruptcy filing for Chapter 11 reorganization.  GM’s new CEO, Fritz Henderson has vowed to do whatever is reasonably necessary to prevent the automaker from going under including seeking loan packages from U.S., Canadian and European governments (especially Germany). However, GM can no longer afford its extensive European operations and is in the process of looking for bidders.

The significant role the auto sector plays in employment, exports and industrial production have heightened the political importance of responding to their vulnerabilities, which have been exacerbated by the credit crunch, prompting rescue packages including bridge loans, incentives to purchase domestic vehicles and increases in tariffs on imported cars and auto parts.  In the face of rising unemployment in other sectors, governments hope to avoid any disorderly bankruptcy proceedings.
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Show the link to this post Re: Crisis in Chartland - US Economy Failing
Reply #82 - Jun 9th, 2009, 5:54pm
 
US banks keen to repay state cash


Quote:
America's biggest banks are queuing up to repay government money they received as part of the $700bn dollar bank bail-out.




The key to note here is the fact that the supposed repayment of funds hasn't happened and even if it does take place, it is almost insignificant compared to the trillions of dollars that were doled out by the Fed and by the US Congress. These banks are returning pennies on the dollar and claiming that they are now outside of any government restrictions imposed on them by President Obama.

Pure window dressing
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Show the link to this post Re: Crisis in Chartland - US Economy Failing
Reply #83 - Jun 27th, 2009, 5:15pm
 
The Corporate Takeover of America


Quote:
The stimulus packages and bailouts that the government has been a little too willing to hand over to our financial industries have not only given these giants more cash in their pockets, but they've also given these companies unprecedented power over our federal government. No other industry has been able to show up in Washington and get a blank check with no oversight, which really shows just who is in charge in our nation's capitol. Robert F. Kennedy, Jr. of Air America's Ring of Fire talks about this shift in power with Rolling Stone political correspondent Matt Taibbi.






This is from GoLeftTV as played on Air America.

You can see Bobby jr. playing the Dem v Rep card heavily. Matt Taibbi is extremely knowledgeable here and shows how both sides are actually equally guilty. And if anything, the smart banking money has been going much more so towards the Dems because Wall Street is no dummy and they know who's going to win.

But the game hasn't changed at all.
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Show the link to this post US is not in line with the needs of the world economy
Reply #84 - Sep 8th, 2009, 9:05pm
 
"US is not in line with the needs of the world economy"


Quote:
In our report, we highlight the importance of the reform of the international monetary and financial systems, including the role of the IMF and the exchange rate system, says Detlef Kotte, an economist at UNCTAD.


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Show the link to this post Re: Crisis in Chartland - US Economy Failing
Reply #85 - Jan 1st, 2010, 4:02am
 
Obama Pledges Unlimited Funds to Fannie Mae, Freddie Mac.m4v


Quote:
On Christmas Eve, the Obama administration pledged to provide unlimited financial assistance to mortgage giants Fannie Mae and Freddie Mac. The eleventh-hour move allows the government to exceed the current $400 billion cap on emergency aid without seeking permission from a bailout-weary Congress. As the administration was making this open-ended financial commitment, Fannie Mae and Freddie Mac disclosed that 12 top executives will receive $42 million in compensation packages. This includes up to $6 million each to Fannie Mae and Freddie Mac's chief executives.


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Show the link to this post Behind The Real Size of the Bailout
Reply #86 - Jan 7th, 2010, 11:25pm
 
A guide to the abbreviations, acronyms, and obscure programs that make up the $14 trillion federal bailout of Wall Street




behind the real size of the bailout

Quote:
The price tag for the Wall Street bailout is often put at $700 billion—the size of the Troubled Assets Relief Program. But TARP is just the best known program in an array of more than 30 overseen by Treasury Department and Federal Reserve that have paid out or put aside money to bail out financial firms and inject money into the markets. To get a sense of the size of the real $14 trillion bailout, see our chart [above]. Below, a guide to the pieces of the puzzle:


Quote:
bailout, see our chart here. Below, a guide to the pieces of the puzzle:

Treasury Department bailout programs

Money Market Mutual Fund: In September 2008, the Treasury announced that it would insure the holdings of publicly offered money market mutual funds. According to the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), these guarantees could have potentially cost the federal government more than $3 trillion [PDF].

Public-Private Investment Fund: This joint Treasury-Federal Reserve program bought toxic assets from banks and brokerages—as much as $5 billion of assets per firm. According to SIGTARP, the government's potential exposure from the PPIF is between $500 million and $1 trillion [PDF].

TARP: As part of the Troubled Asset Relief Program, the Treasury has made loans to or investments more than 750 banks and financial institutions. $650 billion has been paid out (not including HAMP; see below). As of December 21, 2009, $117.5 billion of that has been repaid.

Government-sponsored enterprise (GSE) stock purchase: The Treasury has bought $200 million in preferred stock from Fannie Mae and another $200 million from Freddie Mac [PDF] to show that they "will remain viable entities critical to the functioning of the housing and mortgage markets."

GSE mortgage-backed securities purchase: Under the Housing and Economic Recovery Act of 2008, the Treasury may buy mortgage-backed securities from Fannie Mae and Freddie Mac. According to SIGTARP, these purchases could cost as much as $314 billion [PDF].

Citigroup asset guarantee: In this joint Treasury, Federal Reserve, and FDIC program, the government agreed to cover potential losses to a Citigroup asset pool worth $301 billion [PDF].


T-bill auctions to fund the Fed: In November 2008, the Treasury announced that it would borrow $260 billion to fund the Supplementary Financing Program, whose proceeds were deposited with the Federal Reserve.

TARP overpayment: This June, the Congressional Budget Office estimated that the federal government would lose $159 billion from its TARP loans and investments due to changes in their market value. (So far, Treasury has earned $14.4 billion in dividends from TARP.)

Bank of America asset guarantee: In this joint Treasury, Federal Reserve, and FDIC program, the government agreed to cover potential losses to a Bank of America asset pool worth $118 billion. Bank of America has withdrawn from the program and has paid the government $425 million [PDF] in compensation.

Potential international fund liabilities: In April, the United States committed up to $100 billion to fund the International Monetary Fund's lending and ensure that it "has adequate resources to play its central role in resolving and preventing the spread of international economic and financial crises."

HAMP: The Home Affordable Modification Program offers financial incentives to lenders to modify home loans. $75 billion in federal funds has been committed; $50 billion of that comes from TARP is set aside to modify mortgages not owned or guaranteed by Frannie Mae, Freddie Mac or other government-sponsored entities.

Treasury exchange stabilization fund: A temporary program to insure the holdings of publicly offered money market mutual funds.

GSE credit facility program: Additional credit made available to Fannie Mae and Freddie Mac. Expires December 31, 2009.



Federal Reserve bailout programs

Commercial Paper Funding Facility: With the support from the Treasury, the Fed established the CPFF in October 2008 to increase the availability of short-term debt (commercial paper) funding. Up to $1.8 trillion [PDF] was earmarked for the program.

Mortgage-backed securities purchase: In 2009, the Fed earmarked up to $1.25 trillion to buy investments based on home loans.

Term Asset-Backed Securities Loan Facility: TALF provides financing to investors who are buying asset-backed securities. In February 2009, the Fed and Treasury announced an expansion of the program to generate up to $1 trillion in new lending.

Foreign Central Bank Currency Liquidity Swaps: The Fed has provided $755 billion [PDF] for currency liquidity swaps with foreign central banks.

Money Market Investor Funding Facility: The MMIF was established in October 2008 to provide loans for investors buying certificates of deposit and commercial paper. According to SIGTARP, $600 billion [PDF] was allocated for the program.


Treasury Purchase Program: In March 2009, the Fed was authorized to purchase up to $300 billion of treasury securities.


GSE Program: In March 2009, the Fed increased its purchases of debt from government-sponsored enterprises (Fannie Mae and Freddy Mac) from $100 billion to $200 billion.

Primary Dealer Credit Facility: The PDCF provides overnight loans to primary dealers (financial firms that can engage in direct transactions with the federal government). The Fed allocated $147.7 billion [PDF] for it in 2009.

ABCP MMMF liquidity facility: The Asset-Backed Commercial Paper (ABCP) Money Market Mutual Fund (MMMF) Liquidity Facility (whew!) provides loans to financial institutions purchasing commercial paper from money market mutual funds. According to SIGTARP, the Fed allocated $145.9 billion for the program in 2009.  

JPMorgan Chase/Lehman Brothers: In September 2008, the Fed gave JPMorgan Chase $148 billion in help the near-bankrupt Lehman Brothers.

Open Market Operations: In September 2008, the Fed injected $125 billion into the market by purchasing securities and repurchase agreements, or repos, in which primary dealers borrow cash from the fed.

Tri-Party Repurchase Agreements: The Fed provided $124.6 billion [PDF] for this type of repo in 2009.

Primary Credit: The Fed provided $112 billion [PDF] to offer loans at a discounted rate to eligible institutions in 2009.


Temporary Reserves: Between August and September 2007, the Fed made $93 billion of temporary reserves available for loans to financial firms.

Single-Tranche Repurchase Agreements: In 2009, the Fed offered a total of $80 billion for short-term loans to holders of mortgage-backed securities.

Term Auction Facility: Under TAF, the Fed auctions short-term loans to financial institutions. The amount of loans offered has varied widely; between December 2009 and January 2010, $75 billion in loans will be available.

AIG preferred stock interests, credit, and loan: The Fed provided $53 billion to the struggling AIG in various forms between 2008 and 2009.


AIG Securities Lending Facility: In October 2008, the Fed authorized the Federal Reserve Bank of New York to borrow up to $37.8 billion in securities from AIG.


Maiden Lane II and III (AIG): In 2008, the Fed authorized its New York branch to form three limited liability companies: Maiden Lane, Maiden Lane II, and Maiden Lane III. It provided $52.5 billion to Maiden Lane II and III to assist AIG.

Maiden Lane I (Bear Stearns): The Fed provided $29.8 billion to Maiden Lane I to acquire Bear Stearns' assets and facilitate its merger with JPMorgan Chase.


TSLF: The Term Securities Lending Facility offers Treasury collateral to the Federal Reserve Bank of New York so it can auction weekly loans to financial institutions. $25 billion in loans will be available between November 2009 and January 2010.

TOP: The Term Securities Lending Facility Options Program allowed primary dealers to get TSLF loans in exchange for collateral. At the time of the program's termination in June 2009, $50 billion in loans had been offered.

Expansion of system open market account securities lending: In July 2009, the Fed increased its limit for loans of securities to brokers from $3 billion to $5 billion, for a total of $36 billion [PDF] in new lending.

JPMC/Bear Stearns Loan: The Fed provided a $12.9 billion bridge loan [PDF] to JPMorgan Chase during its acquisition of Bear Stearns.


Please visit the original article for the corresponding pdf links and other linked data. This is pretty comprehensive and appears to be accurate from the links so far investigated. 14 trillion dollars is a sum so astronomical that it makes all other bailout plans COMBINED seem like mere crumbs thrown at starving peasants looking for a last-gasp attempt at survival. There is absolutely no way that the US can survive the appropriation of these funds in their entirety.

Shocked

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Show the link to this post Re: Crisis in Chartland - US Economy Failing
Reply #87 - Feb 5th, 2010, 9:46pm
 
Marc Faber: US govt will go bankrupt


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Show the link to this post Re: Crisis in Chartland - US Economy Failing
Reply #88 - Feb 26th, 2010, 5:30pm
 
Paul Craig Roberts on US crumbling economic power


Quote:
Charles Munger, Warren Buffet's business partner, said that the U.S. economy will never bounce back because of the national debt and poor planning. Paul Craig Roberts has been saying "it's over" for a while, he agrees that the United States is a failed state/economy/empire, etc.


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Show the link to this post Goldman Sucks
Reply #89 - Mar 4th, 2010, 6:53pm
 
Quote:
Signup for the free newsletter at http://www.Lebed.biz

This video is a visualization of Matt Taibbi's "The Great American Bubble Machine"

It has been cut down slightly to fit the 10 minute time constraints. To read the original article click this link:

http://www.rollingstone.com/politics/...

Feel free to rip and re-post.


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Show the link to this post Re: Crisis in Chartland - US Economy Failing
Reply #90 - Mar 8th, 2010, 7:34pm
 
Where Your Taxes Went: For Big Banks to Buy Up Its Competition. 15 Years Ago, the Combined Assets of the 6 Biggest Banks Totaled 17% of GDP. By 2006, 55%. Now, 63%. It will soon reach somewhere around 80%




new world order report

Quote:
But Simon Johnson gives an even broader perspective on how big the too big to fails have gotten:

Fifteen years ago, the combined assets of our six biggest banks totaled 17 percent of our GDP. By 2006, that number was 55 percent. Right now, it stands at 63 percent.
Johnson also points out that:

The big four have half of the market for mortgages and two-thirds of the market for credit cards. Five banks have over 95 percent of the market for over-the-counter derivatives. Three U.S. banks have over 40 percent of the global market for stock underwriting.
As I've previously noted, the government created the mega-giants (they are not the product of free market competition), and their very size destroys the real economy like a massive black hole destroys the matter around it.

And as Johnson and many others have pointed out, the very size of the giant banks enables them to easily capture politicians ... about as easily as the Great Attractor captures galaxies.
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Show the link to this post Re: Crisis in Chartland - US Economy Failing
Reply #91 - Mar 13th, 2010, 3:46am
 
Matt Taibbi on Wall Street's Bailout Hustle


Quote:
When executives on Wall Street announced that they would be paying themselves $140 billion dollars in bonuses last year in spite of being on government welfare, there was barely a whimper of outrage coming from the American public. After all, this is the kind of behavior that weve come to expect from the corrupt, greed-driven industry that sank our economy. But if their bonuses werent enough to get your blood boiling, than how about the fact that some of the largest financial institutions in America swindled the government like a common street hustler, and left the American taxpayers footing the bill. Mike Papantonio talks about how the swindle occurred and who perpetrated it with Rolling Stones Matt Taibbi.


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Show the link to this post Re: Crisis in Chartland - US Economy Failing
Reply #92 - Mar 16th, 2010, 4:00am
 
The video that will put Geithner behind bars




geithner article with video from the Smirking Chimp

Quote:
You gotta see this! If this doesn't convince you that the Timothy Geithner knew about the securities shenanigans that were going on at Lehman, than I don't know what will.

Keep in mind, that Geithner ran Lehman through 3 "stress tests" prior to bankruptcy; all of which Lehman failed, and yet, nothing was done. Anton R. Valukas--the examiner who wrote the 2,200 page investigative-report which was released on Thursday-- has provided plenty of information detailing Lehman's “materially misleading” accounting and “actionable balance sheet manipulation.”

In other words, they cooked the books.
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Show the link to this post Re: Crisis in Chartland - US Economy Failing
Reply #93 - Jul 19th, 2011, 4:48am
 
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Show the link to this post Re: Crisis in Chartland - US Economy Failing
Reply #94 - Oct 26th, 2011, 10:11pm
 


Quote:
s clip explains the massive fraud being perpetrated on humanity as we speak.

US GDP is ~$15T;
Entire PLANET GDP: ~$65T;
BofA derivatives total $75T; Wells-Fargo derivatives $73T
And they have moved those phony dollars to their commercial side, making them FDIC insured. WE are now on the hook for their crimes, for more money than the entire world produces over several years. This is the result of the repeal of the Glass-Steagall Act in 1999.

Additionally, the UN estimates that the total cost to END WORLD HUNGER would be just under $200 BILLION per year. JP Morgan could feed the world for more than a decade with the money they currently sit on.

As Hurley would say, "The numbers are bad!"
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Show the link to this post Re: Crisis in Chartland - US Economy Failing
Reply #95 - Mar 14th, 2012, 9:24pm
 


Uploaded by OccupyTVNY on Mar 3, 2012


On February 29 in Bryant Park, journalist Matt Taibbi talks to Occupy Wall Street activists about Bank of America and the mortgage crisis.
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Show the link to this post Iceland's Economy booming
Reply #96 - Jun 17th, 2012, 1:33am
 
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Show the link to this post Re: Crisis in Chartland - US Economy Failing
Reply #97 - Aug 9th, 2012, 7:35pm
 


Published on Jul 25, 2012 by rolandsmartin


Roland Martin, Margaret Hoover, Will Cain, Soledad O'Brien talks with Neil Barofsky discuss the problems and failures with TARP.
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