Filed under: Alabama, army, Bank of America, bankruptcy, Big Banks, Communism, Conditioning, Credit Crisis, DEBT, deflation, Dictatorship, Dollar, domestic terror, domestic terrorism, Economic Collapse, economic depression, Economy, Empire, Fascism, global economy, global government, Great Depression, Greenback, Hegelian Dialectic, housing market, hyperinflation, illinois, Inflation, intimidation, jefferson county, JP Morgan, Lehman Brothers, Martial Law, Military, Military Industrial Complex, national guard, Nazi, New World Order, NWO, Police State, Posse Comitatus, Problem Reaction Solution, socialism, Stock Market, u.s. soldiers, u.s. troops, urban warfare, US Economy, Wall Street, War On Terror, world government
National Guard Might Take Over Police Duties in Alabama
Paul Joseph Watson
Prison Planet.com
August 5, 2009
The implementation on martial law in America advanced a step further yesterday when the sheriff of Alabama’s most populous county said he would probably have to bring in National Guard troops to perform law enforcement duties due to budget cuts.
Plans to slash $4.1 million from the budget of Sheriff Mike Hale by Jefferson County commissioners in order to head off a municipal bankruptcy filing were approved by Circuit Judge Joseph L. Boohaker.
“A spokesman for Hale, Randy Christian, said the sheriff told Riley after the ruling that state assistance may be needed to perform basic law enforcement tasks once the department’s current funding is exhausted in early September,” reports the Associated Press.
“We will certainly be looking at calling in the National Guard,” said Christian.
Jefferson County has 640,000 residents and includes the state’s largest city, Birmingham.
Moves to replace traditional law enforcement with National Guard troops have been replicated in other parts of the country, including in Schenectady New York, where budgetary constraints were not even cited as a reason for the changeover.
After a handful of police officers were accused of assaulting citizens, Mayor Brian Stratton proposed declaring martial law and replacing the city’s entire roster of cops with National Guardsmen.
“It may be that as a stopgap measure, that you would need military forces – State Police, National Guard.” the Mayor said.
The use of military assets in civilian law enforcement is still illegal under Posse Comitatus, unless a clear state of emergency exists. The misbehavior of a few cops or the inability of a Sheriff to manage a budget cut does not constitute a state of emergency.
In this context, without the justification of an existing crisis that mandates National Guard intervention, the threat to replace police officers with troops on a whim is a sad reflection of how America is turning into a Soviet style military police state, as law enforcement increasingly shifts over to Homeland Security and Northcom controlled military assets.
Possible National Guard Deployment in Alabama Result of Bankster Scam
Kurt Nimmo
Infowars
August 5, 2009
Earlier today, Paul Joseph Watsonn reported on the expected deployment of National Guard troops in Jefferson County, Alabama, to perform law enforcement duties in violation of Posse Comitatus due to budget cuts. “Plans to slash $4.1 million from the budget of Sheriff Mike Hale by Jefferson County commissioners in order to head off a municipal bankruptcy filing were approved by Circuit Judge Joseph L. Boohaker,” Watson wrote.
As it turns out, Jefferson County’s financial woes are a direct result of a bankster derivative scam.
“A few years ago Jefferson County, Alabama bought 17 interest rate swaps from JP Morgan, Lehman Brothers and Bank of America with the intention of hedging interest rate risk,” writes Moe Tkacki for the Business Insider’s Clusterstock. “In a sequence of events that played out in state capitals, city halls, and school and public utility boardrooms throughout the country , Jefferson County officials bought into complex interest rate swap contracts they didn’t understand, at much higher prices than the going rate, only to face hundreds of millions of dollars in sudden collateral calls when the subprime mortgage crisis began.”
Credit default swaps are a mega-scam perpetuated by the major banks. Last year, there was more than 70 trillion dollars in the so-called credit default swap market, a sum larger than the GDP of the world. “If only 1 to 2 percent ’service fee’ were charged in these transactions (which are based on illusory assets), we’re talking nearly three-quarters to one-and-a-half trillion dollars in real term fees being siphoned off (i.e. hijacked from) the global economy for no productive, but merely parasitic, purpose,” writes Zeus Yiamouyiannis. “One thing of which I am convinced, we have just been ripped off trillions of dollars and 700 billion of even real money won’t fix the problem.”
In late 2008, then Treasury Secretary Hank Paulson attempted to cover-up this scam and protect his bankster masters. Now the damage is coming home to roost in places like Jefferson County, Alabama. Expect the rot to spread and troops to be called out in other parts of the country.
It really is a genius plan on the part of our globalist rulers. First, they hijacked the economy with their scam. Second, they created an economic crisis of fantastic proportion (and are now demanding world government as the cure). Third, in response to the social and political disintegration caused by their scam cash-strapped government tells us they have to lay-off the police and send out the troops because “anarchy” will rule if they don’t.
It is problem-reaction-solution on steroids.
For now, reports the Associated Press, “sewer system is still operating normally” — sewers are one of the hallmarks of an advanced civilization — but the county has closed four satellite courthouses and residents are standing in line for hours at the main courthouse to do routine business like renewing car tags.
It doesn’t take much imagination to speculate what will happen when the sewers stop working and normal government operations — fire and ambulance service, county hospitals, trash collection, the maintenance of the public water system, etc. — come crashing to a halt.
Jefferson County will need the National Guard to stop the plebs from revolting.
Photo of Combat Vehicles on the Streets of Springfield, Illinois
Infowars
August 3, 2009
On July 30, Infowars reported on an Illinois Army National Guard plan to put Armored Security Vehicles on the streets. “A Springfield-based military police company will be training with a new armored vehicle in the area this week,” the Associated Press reported. “The Illinois Army National Guard says training with the new Armored Security Vehicles will start Thursday and run through Sunday.”
An Infowars reader captured an image of the combat vehicles over the weekend. “Here is a picture of the Illinois National Guard driving the new armored military police vehicles through the streets of Springfield, Illinois.”
Staff Sgt. Daniel Becker told the AP people shouldn’t be afraid of the vechicles. “No, they shouldn’t be afraid — they need to let the idea sink in that it is normal for armed troops to be on the streets. After they get used to military vehicles on the roads, they will need to get accustomed to military checkpoints like the ones in Iraq and Afghanistan,” we wrote at the time.
Filed under: 2008 Election, Amero, angela merkel, asia, bailout, Bank of America, Big Banks, brad sherman, Britain, C-Span, Canada, Carroll Quigley, central bank, CFR, China, civil liberties, civil rights, CNBC, Congress, corporations, corporatism, Credit Crisis, DEBT, Dictatorship, Dollar, ECB, Economic Collapse, economic depression, Economy, Empire, Europe, european central bank, european union, Fascism, Federal Reserve, France, g8, George Bush, Germany, glenn beck, global economy, global elite, global government, Globalism, gordon brown, Great Depression, Greenback, Habeas Corpus, henry paulson, Hitler, House, hyperinflation, imf, Inflation, interest rate cuts, internationalist, internationalists, job market, John McCain, liquidation, london, Martial Law, Media, middle class, morgan stanley, mortgage, national socialism, Nazi, New World Order, paris, Paulson, peter schiff, Police State, Posse Comitatus, rate cut, Sarkozy, Senate, single currency, socialism, sovereignty, Stock Market, tax, Taxpayers, unemployment, United Kingdom, US Economy, us sovereignty, US Treasury, Wall Street, World Bank, WW2, Zimbabwe | Tags: Ewald Nowotny, fiat currency, global currency, global currency system, global financial order, globalists, globalization, international order, Jean-Claude Trichet, Jeffrey Garten, John Mack, José Manuel Barroso, new global monetary authority, one world currency, Timothy Geithner, weimar republic, world economic crisis, world financial system, world monetary system, world money system, world order
Globalists Exploit Financial Meltdown In Move Towards One World Currency
Paul Joseph Watson & Kurt Nimmo
Prison Planet
October 20, 2008
The swift and ruthless exploitation of the economic meltdown on behalf of globalists and central banks revolves around their drive to move towards a one world currency system and an unprecedented centralization of global financial power.
Statements on behalf of world leaders and central banks over the past two weeks have made it clear that the agenda to further collate economic power and control of currencies into the hands of the few is rapidly accelerating – all in the name of solving a financial crisis that was caused as a result of the same fiat money system that the elite themselves created and maintained.
The original Bretton Woods agreement in 1944, spurred by the depression of the 1930s and the second world war, created the International Monetary Fund, the World Bank and laid down common standards for markets around the world. Now with the current financial crisis EU leaders see another opportunity to impose global regulations on sovereign economies.
As the crisis reached its peak at the end of September, British Prime Minister Gordon Brown led the call for “a new global financial order” in which the world financial system would be built around a centrally coordinated policy of international regulation.
Morgan Stanley Chief Executive John Mack has also called for a new global body to oversee the financial crisis, warning that it is like nothing he’s ever seen before.
The sentiment echoes those of elite figures such as CFR member Jeffrey Garten and Timothy Geithner, president of the Federal Reserve Bank of New York, who have both recently called for a “new global monetary authority”, a de-facto global financial dictatorship, operating across borders and forcing nations and corporations to register and adhere to strict monitoring and regulations.
European Central Bank council member Ewald Nowotny told Bloomberg yesterday that the centrality of the U.S. dollar was in question and that a “tri-polar” global currency system is in development between the U.S., Asia and Europe to replace it.
This followed a call by French President to question whether a “worldwide currency system” should be introduced in response to the financial crisis.
“Another subject in tomorrow’s world is that of the great currencies. How many should there be? What should the agreement between these great currencies be? Should we organize a discussion? Should a country like India one day have a global currency?” Sarkozy told a news conference, reports Reuters.
Any discussion would be purely academic, as the ruling elite long ago decided to force a global currency down our throats. In fact, a global currency is at the very core of their plan to dominate the world. Control money and you control the destiny of states, you eliminate national sovereignty. “The control of money and credit strikes at the very heart of national sovereignty,” A.W. Clausen, president of Bank of America once observed.
As Georgetown professor and CFR historian Carroll Quigley noted, the goal of the banking families and their minions consists of “nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole… controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences.”
It remains to be seen if the EU will realize its “solution” to the world economic crisis. In 2007, Robert Mundell, “the father of the euro,” noted that “international monetary reform usually becomes possible only in response to a felt need and the threat of a global crisis.”
Certainly, the elite cooked up an appropriate global crisis, now they will engage in a full court press to establish a global currency and eventually a global government.
EU Leaders Call for Global Currency
Kurt Nimmo
Infowars
October 18, 2008
If we are to believe the Washington Post, French president and current EU leader Nicolas Sarkozy has pledged to save us from nameless “freewheeling bankers and traders” who get the blame for the current economic crisis.
Sarkozy, Gordon Brown, and EU honcho José Manuel Barroso are talking up an international summit to discuss an “urgent overhaul of the world’s financial architecture,” that is to say a new Bretton Woods to establish a brand spanking new international economic order. Sarkozy has managed to grab George Bush’s ear and he will travel to Washington on Saturday to lay the groundwork for a conference.
In 1944, 44 allied nations met at a resort in Bretton Woods, New Hampshire, to fiddle with monetary standards, fix exchange rates, and create the IMF and World Bank. “Launching a remake of this old model — particularly in such a short time, with so many new participants — would represent a daunting challenge at any time, but particularly during the twilight of the Bush presidency and the crisis that is still jolting banks and stock markets around the world,” reports the Post.
Sarkozy and the EU leaders would have us believe this new Bretton Woods will call for “globally coordinated regulation of the financial industry, elimination of tax havens and a compensation system in which traders are not rewarded for dangerous risk-taking,” among other things.
It was the demise of Bretton Woods in 1971, insists European Central Bank president Jean- Claude Trichet, that led to the abandonment of regulation and subsequent market turmoil. “The explosion of the first Bretton Woods in a way could be interpreted as a rejection of discipline,” said Trichet, reports Bloomberg.
Gordon Brown, the former Chancellor of the Exchequer, wants to fix that turmoil with a new spate of regulations aimed at international finance. On October 13 in London, Brown said “we must devise new rules for a world of global capital flows” just as the founders of Bretton Woods “devised rules for a world of limited capital flows.”
“We now have global financial markets but what we do not have is anything other than national and regional regulation and supervision,” Brown lamented from Brussels.
All of this is nonsense. It should be obvious by now the bankers engineered the current crisis in order to consolidate their hold on the global economy and all the talk about rogue traders, tax havens, and over-compensated executives is merely that — talk, or more specifically a sales pitch, a slick parlor trick devised to fool the commoners.
Glossed over in all the corporate media coverage is the global elite demand that a global currency be established. “Europe wants to present a blueprint for a new worldwide currency system,” reports the AFP in the video here.
“Another subject in tomorrow’s world is that of the great currencies,” Reuters reported Sarkozy musing on October 16. “How many should there be? What should the agreement between these great currencies be? Should we organize a discussion?”
Glenn Beck On One World Currency
“There is a global meltdown coming, it is a global depression, a One World Currency and One World Financial System is the ENDGAME! China said last week said they want One Global Currency, France said yesterday or the day before that they want One World Order a New World Order at the end of this event!” – Glenn Beck
CNBC: The New World Order is in effect on wall street
http://www.prisonplanet.com/calls-for-new-global-financial-order-increase.html
Tri-Polor Global Currency A Possibility
http://www.bloomberg.com/apps..&sid=apjqJKKQvfDc&refer=home
http://www.nationalpost.com/news/story.html?id=885494
G-8 Announces Global Summit On Financial Crisis
http://news.yahoo.com/s/a..t=Ah6wNwIX5KlE5B1m5eFoDXlbbBAF
Bush & Allies Pledge Joint Action On Economy
http://www.youtube.com/watch?v=InFBnX87lzU
Brown: Use This Crisis To Create New Financial World Order
http://www.prisonplanet.com/..new-financial-world-order.html
Filed under: 2-party system, 2008 Election, bailout, Bank of America, Barack Obama, bear sterns, Big Banks, campaign contribution, citigroup, Congress, Credit Crisis, DEBT, Dictatorship, Dollar, Economic Collapse, economic depression, Economy, Empire, Fascism, FEC, global economy, Goldman Sachs, Great Depression, Greenback, House, hyperinflation, Inflation, John McCain, JP Morgan, left right paradigm, Lehman Brothers, liquidation, Merrill Lynch, middle class, morgan stanley, national socialism, nationalization, neocons, Neolibs, obama, Ron Paul, Senate, socialism, Stock Market, Taxpayers, UBS, Uncategorized, US Economy, Wachovia, Wall Street | Tags: credit suisse group, federal election commission, run on banks
Top contributors to Obama and McCain are big banks
Filed under: bailout, Bank of America, Barney Frank, Big Banks, China, Congress, credit cards, Credit Crisis, Daily Show, David Rockefeller, DEBT, Derivatives, Dictatorship, Dollar, Economic Collapse, economic depression, Economy, Empire, Fascism, Federal Reserve, global economy, Great Depression, Greenback, Harry Reid, henry paulson, House, housing market, Hugo Chavez, hyperinflation, Inflation, jon stewart, JP Morgan, Larry Kudlow, Lehman Brothers, liquidation, lou dobbs, Media, middle class, mortgage, mortgage companies, mortgage lenders, Nancy Pelosi, national socialism, nationalization, Nazi, Neolibs, Paulson, putin, real estate, rockefeller, rothschilds, Russia, Senate, socialism, steven colbert, Stock Market, subprime, subprime lending, Taxpayers, US Economy, US Treasury, Venezuela, Wall Street | Tags: dexia, run on banks
Bailout Bill Fails But May Revive And Pass Anyways
Bloomberg
September 30, 2008
The U.S. Senate will try to salvage a $700 billion financial-rescue package after the measure was defeated in the House of Representatives. The lawmakers won’t have a lot of room to negotiate.
While the legislation will need to be tweaked enough to win over reluctant House Republicans, the lawmakers will risk losing votes from Democrats if they veer too far from the delicate compromise that congressional leaders hammered out with the U.S. Treasury.
“They’re not going to totally revamp the bill,’’ said Pete Davis, president of Davis Capital Investment Ideas in Washington, who spoke to House and Senate leaders yesterday. “They’ll make some minor changes and pass it. This is all about political cover.’’
Paulson: King Paulson or Convict Paulson
Recent News:
Bank of America to close credit cards for approximately 60% of customers? (by Oct 1)
http://mparent7777-1.livejournal.com/1933222.html
House Clears $25 Billion For Carmakers
http://www.ft.com/cms/s/0/83bfe68c-8a8f-11dd-a76a-0000779fd18c.html
Home builders will ask for $90 billion bailout
http://money.cnn.com/2008/09..ion=2008092608
I’ve watched the economy for 30 years. Now I’m truly scared
http://www.guardian.co…/globaleconomy.creditcrunch
Treasury explains how it came up with $700 billion: We just wanted ‘a really large number.’
http://thinkprogress.org/2008/09/24/treasury-large-number/
Stocks rallied a day after failed $700B wallstreet bailout
http://money.cnn.com/2008..?postversion=2008093009
US will lose superpower status, claims German minister
http://www.telegraph.co.uk/finance/..-superpower-status-crows-Germany.html
http://www.americanfreepress.net/html/coming_derivatives_crisis_150.html
China Banks Told To Stop Lending To U.S. Banks
http://www.reuters.com..PEK16693720080925
Refusing Dollar as “World Currency” Inevitable
http://capital.trendaz.com/index.shtml?show=news&newsid=1304435〈=EN
http://www.bloomberg.com/apps/news..efer=home
Putin Promises $50Bln For Banks
http://www.themoscowtimes.com/article/1010/42/371301.htm
Dexia bank gets multi-nation $9.2B bailout
http://biz.yahoo.com/ap/080930/eu_belgium_dexia.html
Home Prices in 20 U.S. Cities Declined 16.3% in July
http://www.bloomberg.com/apps/news?.d=aEyKpTpk90C0&refer=us
http://newsfromthewest.blogspot.com/2008/05/who-owns-federal-reserve.html
Chavez says U.S. can’t fix financial crisis
http://www.reuters.com/article/marketsNews/idUSLQ4692420080926
The Hanky Panky Banking Bailout Bill
Rep. Kaptur responds to Bush’s address on failed bailout bill
RBS will get ‘billions’ in US bail-out of economy
Jobless Claims Pushed To 7-Year High
Dow Drops 777 Points
680% Inflation?
Nasdaq tanks, down 6%
California Home Prices Drop Record 41% Amid Defaults
Rumors Trigger Bank Run In Hong Kong
New Home Sales Plunged 11.5% to 17-Year Low
Wachovia Stock Sinks On WaMu News
Filed under: AIG, bailout, Bank of America, bear sterns, Big Banks, Credit Crisis, DEBT, Dictatorship, Dollar, Economic Collapse, economic depression, Economy, Empire, Fascism, FDIC, Federal Reserve, global economy, Great Depression, Greenback, housing market, hyperinflation, Inflation, JP Morgan, Lehman Brothers, liquidation, Merrill Lynch, middle class, mortgage, mortgage companies, mortgage lenders, nationalization, real estate, socialism, Stock Market, subprime, subprime lending, Taxpayers, US Economy, Wall Street, Wamu, washington mutual | Tags: failed banks, J.P.Morgan Chase, run on banks
WaMu: The Biggest Bank Collapse In U.S. History
TOP News
September 26, 2008
In what is being termed as the biggest bank collapse in US history, J.P.Morgan Chase & Co. will acquire massive branch network and troubled assets from Washington Mutual Inc. for $1.9 billion, as per a deal arranged by federal regulators. Under the deal – the latest stunning development in the ongoing credit crisis – J P Morgan Chase will acquire all the banking operations of Washington Mutual, including $307 billion in assets and $188 billion in deposits.
Washington Mutual had been one of the most hard-hit banks during the financial crisis after it bet big, like many of its competitors, on the strength of the housing market – only to see its fortunes sour as housing prices fell. Many analysts were speculating that the endgame for the embattled savings and loan was imminent, particularly after ratings agency downgrades this week, and a freefall in the company’s stock.
As a result of the Washington Mutual acquisition, the New York City-based J P Morgan Chase – after its mid-March acquisition of investment bank, Bear Stearns – will now boast some 5,400 branches in 23 states. “We think it is a great thing for our company,” said Jamie Dimon, J P Morgan Chase Chairman and CEO, in a conference call with investors late Thursday night.
Federal regulators who helped in finalizing the deal said the transition for Washington Mutual customers would be “seamless.” In a statement, FDIC Chairman, Sheila Bair, said: “There will be no interruption in services and bank customers should expect business as usual come Friday morning.”
The acquisition might prompt criticism from J P Morgan Chase rivals about preferential treatment by the government. For instance, no government assistance was extended to Bank of America Corp. in its recently announced purchase of Merrill Lynch. However, in the case of Washington Mutual acquisition, there were presumably other bidders who, in comparison to J P Morgan Chase, offered better deal for the deposits and branches.
The fall of Washington Mutual is the latest turn in a dizzying fortnight that has seen the bankruptcy of Lehman Brothers, the acquisition of Merrill Lynch by Bank of America (BAC, Fortune 500) and the near collapse of insurance giant AIG (AIG, Fortune 500). In fact, Washington Mutual has set a ‘record’ of sorts – it is the 13th bank to fail so far this year, and earns the title of the country’s ‘largest bank failure’ by assets on record, surpassing Continental Illinois’ $40 billion in assets when it failed in May of 1984.
Washington Mutual Is The 13th Bank To Fall This Year
http://www.fdic.gov/bank/individual/failed/banklist.html
Filed under: bailout, Bank of America, bear sterns, bernanke, Big Banks, Chile, Dictatorship, Empire, Fascism, FDIC, Federal Reserve, George Bush, Goldman Sachs, henry paulson, housing market, Lehman Brothers, liquidation, Merrill Lynch, middle class, morgan stanley, mortgage, mortgage companies, mortgage lenders, nationalization, neocons, New York, Paulson, qui bono, real estate, socialism, subprime, subprime lending, Taxpayers, US Treasury, White House, writedown | Tags: conflict of interest, run on banks
Paulson’s former firm to be among largest beneficiaries of bailout
John Bryne
Raw Story
September 23, 2008
It certainly pays to be Treasury Secretary if your former firm is a brokerage house, a new study says.
Goldman Sachs Group — formerly run by Treasury Secretary Henry Paulson, and Morgan Stanley, stand to be among the biggest beneficiaries of a $700 billion US bailout.
“Its benefits, in its current form, will be largely limited to investment banks and other banks that have aggressively written down the value of their holdings and have already recognized the attendant capital impairment,” Jeffrey Rosenberg, Bank of America’s head of credit strategy research, wrote in a report obtained by Bloomberg News yesterday.
Paulson was the head of Goldman Sach’s investment banking division from 1990 to 1994. He later became chairman and chief executive officer of Goldman, and left his post to join the Bush Administration.
According to the study, the bailout benefits Paulson’s former firm more because banks haven’t had to write down as many troubled mortage assets under accounting rules. This means that participating in the program would cause them to actually lose capital, as opposed to investment banks, which stand to gain.
Paulson $700 billion program is designed to remove “bad assets” from the US financial markets to prevent credit for businesses from drying up, which would send the economy into a further tailspin. Many businesses rely on credit to fund their daily operations.
Lawmakers are debating the plan today.
“While Goldman and Morgan Stanley, both based in New York, were yesterday granted permission to transform themselves into bank holding companies, the companies so far have operated mostly under investment-bank accounting rules, logging almost $21 billion of asset writedowns and credit losses,” Bloomberg News notes.
Goldman made sizable profits in 2007 from the subprime mortgage sector. It, along with Morgan Stanley, has fared better than investment houses Merrill Lynch, Lehman Brothers and Bear Stearns, because it has held a more conservative capital base.
Paulson has admirers: during his Goldman tenure the firm donated 680,000 acres of land in Chile, and he has personally given away $100 million of his fortune to charitable groups.
According to estimates conducted by Open Secrets, Paulson is the richest cabinet member of the Bush Administration.
http://thinkprogress.org/2008/09/22/paulson-goldman-bailout/
Filed under: 2-party system, 2008 Election, Ahmadinejad, AIG, Alan Greenspan, bailout, Bank of America, Barack Obama, bernanke, Big Banks, Bill Clinton, China, citibank, Condoleezza Rice, Congress, Credit Crisis, David Rockefeller, DEBT, Dictatorship, Dollar, Economic Collapse, economic depression, Economy, Empire, fannie mae, Fascism, FBI, FDIC, Federal Reserve, foreclosure, freddie mac, George Bush, george soros, global economy, global elite, Globalism, gold, Goldman Sachs, Great Depression, Greenback, Harry Reid, henry paulson, housing market, hyperinflation, Inflation, internationalist, internationalists, Iran, John McCain, JP Morgan, left right paradigm, Lehman Brothers, liquidation, michael mullen, middle class, morgan stanley, mortgage, mortgage companies, mortgage lenders, Nancy Pelosi, nationalization, Nazi, neocons, Neolibs, New World Order, obama, Patriot Act, Paulson, real estate, Robert Gates, rockefeller, Sarkozy, socialism, Stock Market, subprime, subprime lending, Taxpayers, US Economy, US Treasury, Wachovia, Wall Street, wells fargo, White House | Tags: Commodities Futures Trading Commission, J.P. Morgan Chase, Marcy Kaptur, Peter Defazio, Robert Rubin, run on banks
Bailout: Not $700 Billion, More Like $5 Trillion
Bei Hu
Bloomberg
September 24, 2008
Treasury Secretary Henry Paulson’s $700 billion plan to buy devalued assets from financial companies is “a joke” because it doesn’t go far enough to calm markets, said Kenichi Ohmae, president of Business Breakthrough Inc.
Ohmae, nicknamed “Mr. Strategy” during his 23 years as a McKinsey & Co. partner, called for a $5 trillion “international facility” to be made available to financial institutions. The system could be modeled on one used by Sweden during its banking crisis in the early 1990s, he said.
“This is a liquidity crisis,” Ohmae said at an investor forum hosted by CLSA Asia-Pacific Markets, the regional broking arm of Credit Agricole SA, in Hong Kong yesterday. “The liquidity has to be so big that people won’t get panicky.”
Paulson’s proposal to remove hard-to-sell assets clogging the financial system marks the broadest intervention since at least the Great Depression. Asian stocks fell today, following U.S. shares lower as investors questioned whether the effort is enough to prevent a recession.
The plan came after the collapse of 158-year-old Lehman Brothers Holdings Inc. and the government takeover of insurer American International Group Inc. caused financial markets to seize up last week. The calamity was the culmination of a year during which the U.S. housing market slump left banks and securities firms with more than $520 billion of asset writedowns and credit losses.
NO To The Paulson-Bernanke Derivatives Scam Bailout
Webster G. Tarpley
September 24, 2008
WASHINGTON DC – The grand theft bailout now being rammed through Congress by Treasury Secretary Paulson, Federal Reserve Chairman Bernanke, and other officials of the Bush regime with the help of accomplices Pelosi, Majority Leader Harry Reid, and other parliamentarians is a monstrosity for the ages, combining every hideous feature of monetarism, elitism, oligarchism, and sheer feckless incompetence. It is to all intents and purposes a national suicide note of the United States of America, a contract with the devil that absolutely guarantees irrevocable national decline. For any person of goodwill there can be only one impulse at the present moment, and that is to stop this bailout — to block it, to sabotage it, to bottle it up, to load it with killer amendments, and to do everything legally possible to stop this insane design from going through.
IF MCCAIN VOTES AGAINST THE BAILOUT, HE WILL WIN THE PRESIDENCY
In political terms, McCain is now running well to the left of Obama on this issue, with a much stronger populist profile. McCain has attacked the outrageous greed and corruption of Wall Street. Obama does not dare attack Wall Street, since these are his masters. Obama, sounding like Milton Friedman, only attacks Washington. Obama has said that he will support whatever Paulson demands. That is not a surprise, since Paulson represents Goldman Sachs, and Obama is a wholly owned property of Goldman Sachs, which is his single biggest source of campaign contributions. Obama is a creature of Brzezinski, Soros, and Rockefeller, and without them he has no existence; Obama is an abject Wall Street puppet, an agent of finance capital. This week, both senators will have to decide how they vote on the odious derivatives bailout. Obama will surely vote in favor of it, since this is what Wall Street demands. If McCain votes against it, he will most probably propel himself into the White House on the model of Give ‘Em Hell Harry in 1948. Filthy corrupt Democrats like Schumer are already attacking McCain as the new Huey Long. Huey Long, the Louisiana populist of the 1930s, had many positive features, and we could certainly use a good dose of Huey Long in this country to counteract the elitism, oligarchism, condescension, and arrogant snobbery of foundation operatives like Obama. The bailout is already very unpopular 72% of all voters are opposed to it and it will become more and more hated when it becomes clear that it is also a failure. McCain’s course is clear. Will he have the brains and guts to cross Obama’s T on this vital issue?
PAULSON OF GOLDMAN SACHS, WOULD-BE FINANCE DICTATOR
Paulson is a ruthless and brutal eco-freak usurer who learned his trade at the Goldman Sachs stock-jobbing operation. He is now the leading member of the committee of public safety which rules in Washington, and which includes Gates, Rice, and Mullen. He now demands the astronomical sum of 700 billion dollars for the bailout of mortgage-backed derivatives, collateralized debt obligations, credit default swaps, and other poisonous derivatives. Make no mistake — this is not a bailout of homeowners who are threatened with foreclosure; it is a bailout of the lunatic house of cards which desperate bankers have built on these mortgages using derivatives. The entire crisis is not a crisis of subprime mortgages, it is a crisis of the derivatives bubble which was launched by Wendy Gramm of the Commodities Futures Trading Commission and Greenspan of the Fed with the connivance of Robert Rubin of Goldman Sachs and Citibank, and others in the Clinton administration, some 15 years ago.
These derivatives now amount to a total worldwide notional value that can be estimated between 1 quadrillion and two quadrillion US dollars. This sum is so large that it dwarfs the total value of the entire planet earth and all those who live here. Compared to the cancerous, bloated, and fictitious mass of derivatives which is at the root of this crisis, the $700 billion demanded by politicians, large as this may seem, is nothing but a drop in the bucket. And a drop in the bailout bucket is what it will be. The mass of world derivatives between $1 and $2 quadrillion represents an insatiable black hole which is capable of putting an end, not just to civilization, but the human life itself. The moral choice could not be clearer: humanity will either destroy the derivatives bubble in our time, or the derivatives bubble will surely destroy humanity. Those are the stakes in the current exercise.
Paulson and Bernanke, both lawyers for the Wall Street jackals, lampreys, vultures and hyenas, argue that the public interest demands a bailout of their cronies at Goldman Sachs, Morgan Stanley, J.P. Morgan Chase, Citibank, Bank of America, Wachovia, and the other large money center institutions. Before the American public antes up $700 billion just for openers in the game of genocidal poker which run by the infernal croupiers Paulson and Bernanke, we would be very well advised to examine the veracity of this premise.
They Want Mama To Make it All Better! – Congresswoman Marcy Kaptur
Rep Defazio On The Bailout Package
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Real Estate Bigwig Zell Sees 2009 Recession
http://www.cnbc.com/id/26858394
Bailout Is Financial Equivalent Of The Patriot Act
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America Versus the Financial Elite
http://georgewashington2.blogspot.com/2008/09/america-versus-financial-elite.html
Fed Acted Like a Liquidity Drug Dealer: Economist
http://www.cnbc.com/id/26848829
’Punish’ those responsible for financial crisis: Sarkozy
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FBI ‘Probe’ Into Mortgage Giants
http://uk.news.yahoo.com/skynews/20080924/twl-fbi-probe-into-mortgage-giants-3fd0ae9.html
Iran Leader Says American Empire Near Collapse
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US Fed throws $30 billion into foreign credit markets
http://afp.google.com/article/ALeqM5itOHJbNrxCHKetPtXIPIbY3TalIQ
China Paper Calls For A New Financial Order Without U.S.
http://www.reuters.com/article/ousiv/idUSPEK4365020080917?sp=true
Top Economist Mishkin: Worse Than the Depression
http://www.cnbc.com/id/26850473
Lehman’s Bankruptcy and the Hidden $138 Billion Bailout of JP Morgan
http://www.cnbc.com/id/26850473
Eveillard Says Gold May Surge as Investors Seek ‘Insurance’
http://www.bloomberg.com/apps/news?pid=20601213&sid=a8L00oInO1YM&refer=home
Wachovia, JPMorgan, Wells Fargo tumble
http://www.reuters.com/article/email/idUSN2231756020080922
Goldman, Morgan Stanley Bring Down Curtain on an Era
Goldman Sachs to be regulated by Fed
Fury at U.S. Lehman Brothers’ staff who could net £1.4bn in bonuses as UK employees face bleak future
Europeans on left and right ridicule U.S. money meltdown
Paulson On Verge Of Historic New Powers
Fed To Supervise Goldman And Morgan
Filed under: Amero, Australia, bailout, Bank of America, Big Banks, BIS, Britain, Canada, China, Congress, corporations, corporatism, Costa Rica, David Rockefeller, Ecuador, energy, Eugenics, Euro, Europe, european union, exxon mobil, fannie mae, FDIC, Federal Reserve, food market, food prices, food shortage, freddie mac, gas prices, general motors, George Bush, Germany, global economy, global elite, global government, Globalism, gold, housing market, hyperinflation, India, indymac, International Bankers, internationalist, Iran, Japan, job market, liquidation, malthusian catastrophe, Martial Law, Mexico, middle class, mortgage companies, mortgage lenders, mugabe, nationalization, neocons, New World Order, North American Union, Oil, Patriot Act, Petrol, Police State, Population Control, Posse Comitatus, private banks, real estate, rockefeller, rothschild, shell, silver, South America, spain, Stephen Harper, subprime, subprime lending, Taxpayers, United Kingdom, Venezuela, wells fargo, Zimbabwe | Tags: Deutsche Bank, george green, k-mart, run on banks, sears, silver shortage, spanish bank, wells fargo
Stressed banks borrow record amount from Fed
Reuters
July 31, 2008
Banks borrowed a record amount of funds from the Federal Reserve in the latest week as the year old credit crisis took a persistent toll, while the commercial paper market continued to contract, signaling tough conditions for short term borrowers.
Banks’ primary credit borrowings averaged $17.45 billion per day in the latest week, the second straight week this had hit a record and up from $16.38 billion the previous week, Fed data showed on Thursday.
Zimbabwe Devalues Currency
AP
July 30, 2008
Zimbabwe will drop 10 zeros from its hyper-inflated currency — turning 10 billion dollars into one — the country’s reserve bank said Wednesday. President Robert Mugabe threatened a state of emergency if businesses profiteer from the country’s economic and political unraveling.
Shop shelves are empty and there are chronic shortages of everything including medication, food, fuel, power and water. Eighty percent of the work force is unemployed and many who do have jobs don’t earn enough to pay for bus fare.
Inverview with George Green – (7/16/2008)
http://www.politico.com/news/stories/0708/12166.html
Soaring energy bills set to push inflation to 16-year high
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GM Has $15.5 Billion Loss on U.S. Sales Drop, Leases
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Venezuela to Nationalize Spanish Bank
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IndyMAC Files For Bankruptcy Protection
http://www.nytimes.com/2008..2&ref=business&oref=slogin&oref=slogin
Jobless Claims Up Highest In Five Years
http://www.wnbc.com/news/17049831/detail.html
Inflation Could Hit 6% By Fall?
http://economictimes.indiatimes.com..Economist/articleshow/3307499.cms
Deutsche Bank Writedowns Exceed $11 Billion
http://moneynews.com/financenews/bank_writedowns/2008/07/31/117802.html
Shell reports 33% rise in profit
http://www.iht.com/articles/2008/07/31/business/31shellNEW.php
Exxon posts record $11.68 billion profit
http://money.cnn.com/2008/07/31/news/.._profits/?postversion=2008073109
Britons Skipping Meals Due To Money Worries
http://www.money.co.uk/article/100..-meals-due-to-money-worries.htm
IMF Calls For N. African Economic Integration
Greenspan: Housing No Where Near Bottom
Economic Rebound Not As Energetic As Hoped
Biggest dive for commodities in 28 years
Filed under: Bank of America, Bear Stearns, bernanke, Big Banks, Britain, central bank, copper, Credit Crisis, DEBT, Dollar, Dow, Economic Collapse, economic depression, Economy, energy, Euro, Europe, european union, fannie mae, Federal Reserve, food market, food prices, freddie mac, gas prices, George Bush, global economy, gold, Great Depression, Greenback, housing market, Illegal Immigration, imf, Immigration, Inflation, Israel, Mexico, mortgage companies, nymex, Oil, Petrol, real estate, silver, stimulus, Stimulus Package, Stock Market, tax, tax rebates, UAE, United Kingdom, US Economy, US Treasury, World Bank | Tags: soybeans, wheat, with corn
Oil Hit Record $147, Gold $969, Euro $1.59
On Friday Oil hit record of $147.27, Gold $969, Euro $1.5972 against the greenback, Today July 14, 2008 11:31 AM EDT Crude price sinks to $145, Gold $969, Euro 1.5859.
AP
July 12, 2008
Gold prices rose Friday, making their largest advance since first hitting $1,000 earlier this year, after another record crude rally and a tumbling stock market led jittery investors to the safety of hard assets.
Other commodities traded mostly higher, with corn, soybeans, wheat and other agriculture futures rising.
Gold’s rally suggests investors are increasingly concerned about rising inflation as Americans struggle with $4 gasoline and the U.S. dollar continues to lose ground against its main rivals.
After a week of volatile trading in the commodities complex, a myriad of dour economic developments pushed gold prices skyward: Oil soared above $147 for the first time, stocks dove on concerns that mortgage companies Freddie Mac and Fannie Mae might collapse and the dollar tumbled further against the euro.
“All of these things are a pretty good recipe for safe-haven buying into bullion,” said James Steel, analyst with HSBC in New York. “You’re really spoiled for choice on a day like this.”
Gold for August delivery added $18.60 to settle at $960.60 an ounce on the New York Mercantile Exchange, after earlier rising as high as $969.10. That was gold’s highest trading level since first cracking the $1,000 threshold on March 13 after the collapse of Bear Stearns & Co.
Nervousness about the U.S. economy, record energy prices and the falling dollar have helped propel gold 34 percent higher in the past year, but it’s not clear if the current climate is gloomy enough to push gold back into record territory.
“The $1,000 mark accompanied a bank failure the last time so it’s questionable whether the situation now is as severe, but that doesn’t mean it won’t go back to that level,” Steel said.
Other precious metals also traded higher. September silver prices added 50 cents to settle at $18.82 an ounce on the Nymex, while September copper gained 2.15 cents to settle at $3.74 a pound.
Euro falls one cent vs dollar from day’s highs
Reuters
July 14, 2008
The euro fell over one cent from the day’s highs against the dollar on Monday, after the U.S. Treasury and Federal Reserve launched emergency steps to restore investor confidence in U.S. mortgage lenders Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac.
The euro fell to as low as $1.5866 on trading platform EBS, down from an intraday high of $1.5972.
Jim Rogers: Dollar Doomed, Fed Will Fail
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Dow Drops Below 11,000
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Stimulus Checks for the Dead
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Budget Deficit Twice as Big as Last Year’s
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Mexican Illegal Aliens Leaving U.S.
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Experts Worry Euro Might Replace US Dollar as Primary Reserve Currency
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Similarities between 1929 and 2008 terrifying
Emirates calls on GCC countries to depeg currencies from US dollar to curb inflation
Pension plans suffer huge losses
Filed under: Bank of America, Big Banks, California, central bank, Congress, Credit Crisis, DEBT, Economic Collapse, economic depression, Economy, Euro, Federal Reserve, gas prices, Germany, gold, Great Depression, Greenback, housing market, imf, Inflation, interest rate cuts, Iraq, nation building, occupation, Oil, palladium, Petrol, platinum, rate cut, silver, Stock Market, Turkey, US Economy, US Treasury, War On Terror
Gold hit record $959 and Oil $101 a barrel, Dollar falls record low on fears of another Fed Cut
Reuters
February 27, 2008
Gold roared above $955 an ounce on Wednesday to its highest level ever, with investors pouring money into the metal after oil hit a record above $101 a barrel and the U.S. dollar tumbled against other currencies.
Spot gold rose as high as $955.70 an ounce, with buying particularly from investors and speculators in Japan. It was up from $946.60/947.40 late in New York on Tuesday and has gained more than 14 percent this year.
Silver rallied to its loftiest level since November 1980 on investor buying as it was still cheaper than other precious metals. Palladium jumped to its best level in more than six years while platinum hovered below last week’s record.
“Investors are still very concerned about the fluctuations and troubles in other markets,” said Darren Heathcote of Investec Australia in Sydney.
“Let’s just say $970 is not inconceivable. As I guess $1,000 is not inconceivable. There doesn’t seem to be much reason to sell gold,” he said.
The U.S. dollar hit a record low beyond $1.50 to the euro after surprisingly weak U.S. data and comments by the Federal Reserve’s No. 2 official reinforced views that the central bank will keep cutting interest rates. [ID:nT78648]
“The stock markets and oil are going up and that attracts buying interest. Going ahead, we are talking about $970,” said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong, who pegged support at $930 an ounce.
Gold shrugged off any worries about sales by the International Monetary Fund of some of its bullion reserves, which Leung said would be done in stages and in limited quantity and were unlikely to cause a sharp drop in gold prices.
The United States Treasury has reversed its opposition to the sale of a limited portion of the IMF’s more than 3,000 tonnes of gold stocks, the world’s third-largest holding, and was confident Congress would support the move.
U.S. gold futures also hit record highs. Gold for April delivery , the most active contract, on the COMEX division of the New York Mercantile Exchange hit a high of $959 an ounce, up from Tuesday’s settlement of $948.90 an ounce.
In the physical sector, jewellers cashed in on gold’s rise but there was also buying from speculators, who believed there was still room for gains.
“It’s basically two-way trading. There was selling from jewellers in Indonesia but the volume is low,” said a dealer in Singapore, referring to Southeast Asia’s main consumer.
Silver jumped as high as $19.25 an ounce, its best level in 27 years. The metal was last quoted at $18.65/18.70 late in New York on Tuesday.
Spot platinum rose to $2,145/2,152 an ounce from $2,130/2,140 an ounce but off last week’s record high of $2,192 an ounce.
Palladium rose as high as $546 an ounce, its best level in more than six years, up from $523/528 late in New York.
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http://www.timesonline.co.uk/tol/com..le3419840.ece
Some See $4 Gasoline In U.S. By Spring
http://www.iht.com/articles/2008/02/27/business/26gasweb.php
Gold could near $1,000 this year as stagflation fears grow
http://www.ft.com/cms/s/0/5db..0779fd2ac,s01=1.html
Video of homelessness epidemic in Los Angeles focuses on children
http://www.youtube.com/watch?v=karPGdnqljE
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Bank of America circulating confidential proposal to Congress seeking $739 billion bailout
http://www.sott.net/articles/s..-Congress-seeking-739-billion-bailout
New York Merchants Embrace Euro
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Oil Prices Up On Turkish Iraq Invasion
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Confidence Plunges Inflation Soars
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German State Owned Banks On Brink Of Ruin
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Gold & Silver Poised For Spectacular Gains
Ghost Town Created By U.S. Loan Scandal
Deep recession feared in U.S.
Oil rises above $99 on Iran warnings, Turkish raids
Inflation: Americas Greatest Export
It Is Time To Dump The Federal Reserve
‘Unprecedented national fall in house prices’
Existing Home Sales Decline
Fed lowers economic forecast
Wall Street Bank Run
Filed under: 9/11, Australia, Bank of America, Bear Stearns, bernanke, Big Banks, bilderberg, black monday, bonds, Britain, central bank, CFR, Credit Crisis, DEBT, Dow, Economic Collapse, economic depression, Economy, engineered recession, Europe, european union, Federal Reserve, foreign buyout, FTSE, gas prices, George Bush, global economy, gold, Great Depression, Greenback, hong kong, housing market, Inflation, interest rate cut, interest rate cuts, Merrill Lynch, Northern Rock, Oil, Oppenheimer, Petrol, rate cut, Russia, S&P, Stock Market, tax rebates, US Economy, Wall Street
Fed Cuts Interest Rates 75 Basis Points
AP
January 22, 2008
The Federal Reserve, confronted with a global stock sell-off fanned by increased fears of a recession, slashed a key interest rate by three-quarters of a percentage point on Tuesday and indicated further rate cuts were likely.
The surprise reduction in the federal funds rate from 4.25 down to 3.5 percent marked the biggest funds rate cut on records going back to 1990.
Federal Reserve Chairman Ben Bernanke and his colleagues took the action after an emergency video conference on Monday night, a day when global markets had been pounded by rising concerns that weakness in the world’s largest economy was spreading worldwide.
Despite the Fed’s bold move, Wall Street plunged at the opening. The Dow Jones industrial average was down 311.99 points in the first hour of trading.
In a brief statement explaining its move, the Fed said that “appreciable downside risks to growth remain” and officials pledged to “act in a timely manner” to deal with the risks facing the economy. The action was approved on an 8-1 vote.
Analysts said the fact that the Fed did not wait until its meeting next week to cut rates underscored the seriousness of the situation.
“The world’s stock markets are in meltdown so the Fed came in with an inter-meeting move to try to stop the panic,” Christopher Rupkey, senior economist at Bank of Tokyo-Mitsubishi.
The Bush administration, which had announced on Friday that President Bush supported a $150 billion economic stimulus package, said Tuesday that it was not ruling out doing more than the $150 billion proposal if necessary.
Many analysts said if the carnage continues in stock markets, the Fed will move to cut rates again at its Jan. 29-30 meeting.
“This move is not an instant fix,” said Ian Shepherdson, chief U.S. economist at High Frequency Economics. “The economy is still staring recession in the face, but at least the Fed now gets it.”
‘Fed may keep cutting interest rates’
Western Mail
January 23, 2008
There could be more interest rate cuts to come as the US Federal Reserve tries to head off recession.
Howard Archer of Global Insight said the prospect of a US recession suggests the Fed may keep cutting rates.
Yesterday’s surprise decision to cut US rates by 0.75% helped rally London’s FTSE-100 index, after £76bn had been wiped off its value on Monday. The index of leading shares closed 161.9 up at 5740.1, a gain of 2.9% after Monday’s 5.5% fall.
The Fed’s cut to 3.50% was its first emergency move since 2001 and the largest single reduction since 1984.
Mr Archer of Global Insight said “The Fed did not directly reference Monday’s global stock-market meltdown in its announcement, merely noting that ‘broader financial market conditions have continued to deteriorate’. It focused upon the weakening outlook for growth.”
US rates ‘heading for 2.5% by the spring’
The Scotsman
January 23, 2008
American interest rates are set to tumble as low as 2.5 per cent by early spring as US policymakers battle to restore stability to a faltering economy.
Economists said they expected the Federal Reserve to have shaved another full point off borrowing costs by its scheduled April meeting.
The prediction came after yesterday’s surprise three-quarter-point cut to 3.5 per cent – a move that appeared to have only limited success in restoring investor confidence.
Bonds jumped sharply, with two-year notes falling to their lowest in nearly four years, as investors prepared for still more rate- cutting.
In London, the benchmark FTSE 100 index of Britain’s biggest companies closed 161.9 points or nearly 3 per cent higher at 5,740.1 following a rollercoaster session and the previous day’s 323-point battering.
Nigel Gault, chief US economist at forecasting body Global Insight, said the prospect of “at least a mild US recession” suggested the Fed was “far from done cutting rates”.
He added: “We now expect the Fed to cut another cumulative 100 basis points off interest rates. The next instalment will probably come at the formal meeting on 30 January – another 25 or 50 basis points. We would expect to hit 2.5 per cent by the April meeting.”
Yesterday’s decision to slash interest rates came a week before the US central bank’s regularly scheduled meeting, a sign that it acknowledges that the global financial situation is serious.
David Jones, chief economist at DMJ Advisors, said the Fed could move again between meetings, should conditions deteriorate further, and predicted the Fed would lower interest rates to 3 per cent by the end of March.
Earlier this month, leading investment bank Merrill Lynch said the US economy was already in recession.
Some analysts pointed to a panic move by the Fed, which is headed by chairman Ben Bernanke. Michael Metz, chief investment strategist at Oppenheimer in New York, said: “Unfortunately the Fed] have no power to reverse what in my opinion is the worst post-war recession.”
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Market’s Wild Ride Ends With Dow at 15-Month Low
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Federal Reserve slashes US rates on day when ‘chaos reigned supreme’
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Tuesday Could Bring 1,000 Point Drop in Dow
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All signs point to U.S. consumers hunkering down in recession bunkers
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Foreigners Buy Stake In USA At Record Pace
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Bank of America net sinks 95 percent
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Oil falls below $89 as stock markets plunge
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Russian shares tumble as panic grips world markets
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Current financial crisis was topic of Bilderberg 2006
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The Coming Global Depression
Bear Stearns: The Fed Will Cut Rates AGAIN Next Week
World stock markets fall
Hopes of global rate cut sparks FTSE revival after early morning slump
Black Monday: recession fears spark global share crash
Biggest fall in shares since September 11
When governments print money, buy gold
Gold rallies back to the 890 usd mark after emergency Fed rate cut
Stocks Plunge Despite Fed Rate Cut
Surprise rate cut sparks dollar sell-off
Global markets dropped 5% overnight
Market drops on recession fear
Wall Street set to open lower
Wall St execs collect $US33b bonuses
Asian Markets Continue Slide
Futures plunge on U.S. recession fears
US recession fears wipe £77bn from London shares
Recession fears weigh on markets
Emergency: Global Financial Markets Collapsing
HK shares dive, China plays in worst day in 10 yrs
Will the Economic Crash Wake People Up?
U.S. slide an expanding threat
Britain Unveils Northern Rock Buy Out Plan
CFR: The ‘Historical Anomaly’ of the Dollar
Banks to suffer into ’09 as credit crunch drags: S&P
Tax Rebates Urged To Rescue Economy
U.S. economy teeters on the brink
7-Year Plan Aligns Europe With U.S. Economy
Filed under: Bank of America, bernanke, Big Banks, central bank, China, citigroup, countrywide, Credit Crisis, david walker, DEBT, Dow, Economic Collapse, economic depression, Economy, Federal Reserve, food prices, gaza, glenn beck, gold, Goldman Sachs, Great Depression, Greenback, henry paulson, housing market, Inflation, interest rate cut, interest rate cuts, Japan, job market, JP Morgan, Merrill Lynch, rate cut, Ron Paul, Stock Market, subprime, subprime lending, Tony Blair, UN, unemployment, US Economy, US Treasury
Fed Ready To Cut Rates Again
ABC
January 10, 2008
Federal Reserve Chairman Ben Bernanke pledged Thursday to slash interest rates yet again to prevent housing and credit problems from plunging the country into a recession.
The Fed chief made clear the central bank was prepared to act aggressively to rescue a weakening economy. “We stand ready to take substantive additional action as needed to support growth and to provide adequate insurance against downside risks,” he said.
Glenn Beck Interviews U.S. Comptroller General
http://www.youtube.com/watch?v=I-16u9x3tfE
UN: US recession could cause global slowdown
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‘Brace yourselves, taxpayers of America. You’re going to help Bank of America finance its $4 billion buyout of Countrywide’
http://mparent7777-2.blogspot.com..urselves-taxpayers-of-america.html
Tony Blair To Join JP Morgan
http://news.yahoo.com/s/nm/2..nm/jpmorgan_blair_dc
Jobless Claims Fell By 15, 000 Last Week
http://www.reuters.com/article/businessN…dName=businessNews
Paulson Sees `No Evidence’ Housing Decline Is Ending
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Japanese Stocks Tumble on Goldman U.S., Domestic Recession Call
http://www.bloomberg.com/apps/news?pid=..LlqAo&refer=japan
Write-down at Merrill Lynch may hit $15 billion
http://www.iht.com/articles/2008/01/11/business/11wall.php
Helicopter Ben About to Shift the Confetti Shredder Into Afterburner
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Food Crisis In Gaza
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Dow Drops Nearly 250 Points
http://biz.yahoo.com/ap/080111/wall_street.html?.v=40
Gold Hits Record After Bernanke Speech
http://www.breitbart.com/article.php?id=D8U36JQO2&show_article=1
Goldman Sachs sees recession in 2008
http://biz.yahoo.com/rb/080109/usa_economy_goldman.html
Merrill Lynch: Recession “Has Arrived”
http://news.bbc.co.uk/2/hi/business/7176255.stm
Chinese & Kuwaitis Bail Out Citigroup
Ron Paul: Get Back to Gold
‘Shocking’ sales results from M&S deepen fears of recession in UK
National Bureau of Economic Research: “Odds Of Recession More Than 50%”
Jim Rogers Says U.S. to Have Worst Recession `in a While’
Gold futures back off in early U.S., near $900/oz
Gold Forecast for 2008
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Wall Street Tumbles After Rate Cut
AP
December 11, 2007
WASHINGTON (AP) – The Federal Reserve dropped its most important interest rate to a nearly two-year low on Tuesday and left the door open to additional cuts to prevent a housing and credit meltdown from pushing the economy into a recession.
Fed Chairman Ben Bernanke and all but one of his colleagues agreed to trim the federal funds rate by one-quarter percentage point to 4.25 percent.
The rate reduction, the third this year, was needed to energize national economic growth, Fed officials said. The deepening housing slump is affecting the behavior of consumers and businesses alike, the Fed said.
“Economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending. Moreover, strains in financial markets have increased in recent weeks,” the Fed said in a statement explaining its decision to cut rates again. The three rate cuts ordered thus far “should help promote moderate growth over time,” the Fed added.
On Wall Street, stocks tumbled, reflecting disappointment among some investors who were hoping for a larger rate cut. The Dow Jones industrial plunged more than 200 points.
The funds rate affects many other interest rates charged to individuals and businesses and is the Fed’s most potent tool for influencing economic activity.
In response, commercial banks, including Wachovia and Wells Fargo, lowered their prime lending rate by a corresponding amount, to 7.25 percent. The prime rate applies to certain credit cards, home equity lines of credit and other loans.
The fact that the Fed’s key rate was lowered again marked an about- face for the central bank. At its previous meeting in October, Fed officials hinted that their two rate cuts probably would be sufficient to help the economy survive the housing and credit stresses. Since then, however, financial conditions have deteriorated, prompting Bernanke to signal before Tuesday’s meeting that another rate cut may be needed after all as an insurance policy against undue economic weakness.
As another bolstering move, the Fed on Tuesday also lowered its lending rates to banks by one-quarter percentage point. That was the fourth cut to the discount rate since mid-August.
“Recent developments, including the deterioration in financial market conditions, have increased the uncertainty surrounding the outlook for economic growth and inflation,” the Fed said in its statement.
Banks, financial companies and other investors who made loans to people with spotty credit or put money into securities backed by those subprime mortgages have lost billions of dollars. Investors in the U.S. and abroad have grown more wary of buying new debt, thereby aggravating the credit crunch.
Harder-to-get credit has thwarted would-be home buyers, intensifying the housing collapse. Foreclosures have soared to record highs. The number of unsold homes have piled up. Problems are expected to persist well into next year.
The 9-1 decision for a quarter-point reduction to the funds rate was opposed by Eric Rosengren, president of the Federal Reserve Bank of Boston. He preferred a bolder, half-percentage point cut.
“Fed’s language clearly reflects a heightened degree of concern about the economic outlook,” said Carl Tannenbaum, chief economist at LaSalle Bank. “They left open the possibility of additional rate reductions,” he added. If the economy were to take a turn for the worse, another rate cut could come before the Fed’s next scheduled meeting on Jan. 29-30, Tannbenbaum said.
The situation poses the biggest challenge yet to Bernanke, who took over the Fed in February 2006. Some analysts have questioned whether he waited too long to cut the Fed’s key rate and whether he has acted aggressively enough to the nation’s economic woes.
In September, the central bank dropped the funds rate for the first time in four years. Then it was a half-point drop; on Oct. 31 came a quarter-point cut.
The rationale behind the lower rates is that they will induce consumers and businesses to boost spending, invigorating economic activity. With Tuesday’s reductions, both the funds rate and the prime rate are now at their lowest levels in nearly two years.
From July through September, the economy logged its best growth in four years. But it is expected to slow to a pace of just 1.5 percent or less over the final three months of the year as the housing collapse and credit crunch chill consumers, sapping overall economic growth. The odds of a recession have grown.
With growth cooling, the unemployment rate, now at a relatively low 4.7 percent, is expected to rise. Analysts expect the jobless rate to climb to 5 percent by early next year.
High oil prices could complicate the Fed’s job of trying to keep the economy expanding and inflation low.
Oil prices, which had neared $100 a barrel, have moderated. But they are still high. High energy prices are a double-edged sword. They can slow economic activity and spread inflation if they cause the prices of lots of other goods and services to rise.
“Elevated energy and commodity prices, among other factors, may put upward pressure on inflation,” the Fed said. “Inflation risks remain,” the Fed said, adding that it “will continue to monitor inflation developments carefully.” Some economists believed the Fed’s decision to go with a moderate quarter-point cut was a nod to those inflation concerns.
Dropping dollar cramps the style of Americans abroad
LA Times
December 9, 2007
LONDON – Karla Keating and her husband had retirement on their minds in May when they got what they considered an offer too good to refuse: a three-year stint in London.
Coming from North Carolina, they knew it was going to be a bit of a financial leap. But the major US bank where her husband is an executive lured him with a 33 percent increase in pay. Within weeks, they had crossed the ocean and found a nice flat near Marylebone for 1,820 pounds – about $3,750.
“The estate agent told me the price, and I said OK, I guess that’s kind of comparable to prices around Europe. And he said, ‘That’s the price per week,’ ” Keating recalls. Since then, it’s been all downhill.
The iPod Nanos for the children cost 99 pounds apiece (about $204), compared with $149 in the United States. Keating’s six-Diet Coke-a-day habit got shaved quickly to one, at $2 a can. They sit at the end of the day on their small balcony overlooking Great Portland Street, and her husband smiles (sort of) and says, “Here’s your $12 glass of wine.”
“When I got here I was like a deer in headlights. I was just, ‘Oh my God’ about everything,” Keating said. “We figured out that with the increasingly weakening dollar, in reality he is making less than he was making 20 years ago.”
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Filed under: Bank of America, catastrophic event, central bank, citibank, CNBC, credit card, Credit Crisis, DEBT, Dow, Economic Collapse, economic depression, Economy, Euro, Federal Reserve, gas prices, global economy, gold, Great Depression, Greenback, housing market, Inflation, Iran, jim rogers, liquidation, marc faber, Merrill Lynch, Nasdaq, Oil, Petrol, S&P, Stock Market, subprime, subprime lending, US Economy, Wall Street, Yen
Gloom & Doom Economist Says Worst Is Yet to Come
CNBC
October 22, 2007
Marc Faber, editor and publisher of The Gloom, Boom & Doom Report, thinks the worst is yet to come for the global economy.
Appearing on CNBC’s “Squawk Box,” the economist and managing director of Marc Faber Ltd., explained his bearish outlook — and offered advice for how to play a glum market.
Faber perceives a “battlefield” between the Federal Reserve and other central banks, which had infused billions of dollars into the worldwide system to boost liquidity, and the counter-pressure of illiquidity brought about by market forces such as declining home prices.
Watch It:
http://www.youtube.com/watch?v=isD2aj3wh20
http://www.youtube.com/watch?v=YmORG10k71c
http://www.youtube.com/watch?v=VXsZu9oXCcg
But the economist fears that the Fed’s “throwing money at the system” will not help improve the fundamentals of the real economy. Instead, he believes, excessive monetary growth has merely driven excessive consumption in the U.S., with consumers living beyond their means and speculators “piling one bubble, housing, on top of the Nasdaq [tech] bubble” that popped in 2001-2001.
“The easy money, the easy credit — you can’t solve your problems with what caused them in the first place,” Faber declares.
He posits that a fully-realized recession at the turn of the millenium might have been for the best, restabilizing the world credit markets. “The longer you postpone the hour of truth, the worse it will be,” he augurs. “We will reach ‘zero hour,’ when more debt doesn’t help.”
How should one prepare for the full-fledged global bust Faber predicts?
Precious metals. He points to the traditional safe harbor, gold — but cautions that the precious metal is “a bit over-bought.” Construction-oriented commodities in general will continue to be driven by Chinese demand, he says, making mining companies a good bet. And he the one absolute essential: Food. “We all have to eat.”
Markets. As to national markets, Faber says that Japan and Thailand are “very reasonable.”
Currencies. He foresees the U.S. dollar remaining low against other currencies — but notes that “Euroland” is very expensive compared to the greenback.
Real estate. Faber’s outlook for real estate goes against the grain: Manhattan is the great exception to U.S. trends, continuing to rise in price even when strong U.S. regions show signs of decline. But Faber says that in the bigger perspective, New York property is as vulnerable to a credit bust as any major metropolitan areas, such as “Hong Kong, Zurich and Frankfurt.”
His real-estate advice: “Buy a farm and learn to drive a tractor.”
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For home builders, the worst is to come
MSN Money
October 2, 2007
The era of NINJA (“no income, no job or assets” ) subprime loans sold by fast-talking storefront mortgage brokers is dead, after all. By some estimates, up to three quarters of sales made in Southern California, Nevada and Florida in the go-go era of 2004-2006 involved some sort of fraud, particularly in the form of exaggerated income.
Foreclosure rates are soaring, and as those owners are kicked out of their homes for not paying, the structures are sitting empty, with no one waiting in line to buy at any price. Meanwhile, more than $1 trillion in adjustable-rate loans will kick mortgage payments much higher by June 2008 for tens of thousands of homeowners, which will push foreclosure rates even higher as people simply walk away from houses they can’t afford. I saw this happen in the last down-cycle in Los Angeles in the late 1980s; it gets ugly and stays that way for years, not months.
According to a report by investment bank Punk Ziegel, there are 17.4 million vacant houses in the country, and only 4.3 million of those are second homes. That means there are more ownerless houses in the United States today as a percentage of total inventory than at any time since records have been kept.
Not only are there not enough qualified households available to take them over, but demographics are heading the opposite direction. A Punk Ziegel analysis shows that the number of people aged 25 to 34 — the age of most home buyers — peaked in 1989 and will not get back to that level until 2013.
Waiting for a bankruptcy
As a result of too few buyers facing too many homes, the rate of price depreciation has been accelerating, with a 3.9% year-over-year decline in July nationwide after a 3.4% decline in June and a 2.8% decline in May. There is little doubt that builders will be forced to write down more of their inventory as losses over the next quarter, further eroding book values.
Although there are pockets of strength, such as my hometown of Seattle, home values in areas like Detroit, Los Angeles, Phoenix, Tampa, Miami and Washington, D.C., are plunging, with year-over-year declines as great as 9.7%, according to data released by research group Case-Shiller.
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