noworldsystem.com


2010 Is The Year of Terrorism, Economic Crash

2010 Is The Year of Terrorism, Economic Crash

http://www.youtube.com/watch?v=NqpKLxU3sKw

http://www.youtube.com/watch?v=ofPK5n715-M

 



Bob Chapman: US Dollar Will Collapse at end of 2010

Bob Chapman: US Dollar Will Collapse at end of 2010

http://www.youtube.com/watch?v=rn94OzLerVo

Lindsey Williams: U.S. Dollar Will Collapse in 2012

 



Ron Paul: You’re Going To Guarantee A Depression

Ron Paul: You’re Going To Guarantee A Depression

http://www.youtube.com/watch?v=wK2QjMydQpU

Ron Paul: Buying bad debt is the wrong solution

http://www.youtube.com/watch?v=b_QpkQwOlwI

CNN Misquotes Ron Paul On Bailout Bill
http://www.prisonplanet.com/cnn-misquotes-ron-paul-on-bailout-bill.html

 



Bailout Bill Will Help Chinese Banks, Foreign Banks

Bailout Bill Will Help Chinese Banks, Foreign Banks

http://www.youtube.com/watch?v=GqIFoBXGizc

http://www.youtube.com/watch?v=v8Qn4-1q80A

http://www.youtube.com/watch?v=Ek7zc0lJxbM

 

Congress Approves Bailout Bill

AP
October 3, 2008

With the economy on the brink and elections looming, Congress approved an unprecedented $700 billion government bailout of the battered financial industry on Friday and sent it to President Bush for his certain signature.

The final vote, 263-171 in the House, a comfortable margin that was 58 more votes than it garnered on Monday. The vote capped two weeks of tumult in Congress and on Wall Street, punctuated by daily warnings that the country confronted the gravest economic crisis since the Great Depression if lawmakers failed to act.

Read Full Article Here

 

Dow plummets when bailout passes

Recent News:

List of Representatives who Switched from “Nay” to “Yea”
http://www.campaignforliberty.com/blog.php?view=1087#.

Food Riots Have Already Begun as Global Grain Prices Skyrocket, Supplies Dwindle
http://www.naturalnews.com/024372.html

California may need emergency $7 billion bailout
http://www.reuters.com/article/newsOne/idUSTRE49229820081003

Hoax Bank Closure Story Peddles Bailout Propaganda
http://www.prisonplanet.co..e-story-peddles-bailout-propaganda.html

Fed Officials Considering Further Rate Cuts: Report
http://www.cnbc.com/id/26986621

Former Head of Fed’s Open Market Operations Says Bailout Might Make Things Worse
http://georgewashington2.blogspot.com/2..ad-of-feds-open-market.html

Bailout Would Only Prolong Crisis: Jim Rogers
http://www.youtube.com/watch?v=49SYpcaWHTE

Wells Fargo Buys Wachovia Nixing Citi Deal
http://biz.yahoo.com/..ls_fargo_wachovia.html?.v=8

Report blames U.S. trade gap for 5.6 million lost jobs
http://www.reuters.com/article/ousiv/idUSTRE4913E220081002

Putin blames US for world economy crisis
http://www.presstv.ir/detail.aspx?id=71042&sectionid=351020602

Bailout bill is 451 pages long
http://news.yahoo.com/s/a..cnWOA64ch9GkocOsJ0lJv24cA

Who’s profiting from the crisis? Goldman Sachs, of course
http://www.marketwatch.c..CDCB7}&print=true&dist=printMidSection

Paulson Bank Rescue Proposal Is ’Crazy,’ O’Neill Says
http://www.bloomberg.com/apps/ne..mClVjevU&refer=home

France Wants $500B Rescue For Europe
http://business.timesonline.co.uk/tol/business/markets/article4864032.ece

Faber: U.S. Bailout Won’t Stop Slowdown
http://www.bi-me.com/main.php?id=25070&t=1&c=35&cg=4&mset=1011

IMF Adds Pressure On Congress To Pass Bailout
http://www.guardian.co.uk/business/2008/oct/01/banking.useconomy

Google stock plunges more than 93% in “erroneous trading”
http://www.tgdaily.com/html_tmp/content-view-39543-118.html

Ford & GM Auto Sales Drop
http://news.yahoo.com/s/ap/20081001/ap_o..OmxGcLJO8EjS5v24cA

Chicago woman buys a house for $1.75
http://www.presstv.ir/detail.aspx?id=71130&sectionid=3510213

Ex-bankers on pushing customers to rack up debt
http://www.cnn.com/2008/LIVING/pers..dex.html?iref=mpstoryview

US economic dominance over – Russia
IMF Warned Of Full-Blown Crisis
September’s ISM Manufacturing Index “Screams Recession,” Economists Say
SEC Extends Ban On Short Selling
Brazilian president: Brazilian economy solid, U.S. should do their homework
Western World Will Become Less Wealthy
’Car sleepers’ the new US homeless

U.S. Economy Collapse News Archive

 



Ron Paul: Greenspan, Bernanke Should Be Criminally Charged

Ron Paul: Greenspan, Bernanke Should Be Criminally Charged

Paul Joseph Watson
Prison Planet
September 26, 2008

Congressman Ron Paul says that the bailout bill is likely to pass, heralding a 10-year plus economic depression for America and the potential for martial law should civil unrest arise as the financial meltdown worsens.

Speaking on The Alex Jones Show, Paul said of the bailout, “They want dictatorship, they want to pass all the penalties and suffering on to the average person on Main Street,” adding, “We will have a depression or recession, it’s locked in place due to previous Federal Reserve actions.”

“When they say that if we don’t do exactly as they say and turn over more of our money and more of our liberties and exempt themselves from any court in the whole nation, they’re trying to intimidate us and lead us into doing the wrong thing,” said Paul.

The Congressman added that serious problems would arise if nothing was done to address the problem, but that more serious consequences would follow should the bailout be passed.

Paul warned that the only question was whether the meltdown would last one year or ten years and how much liberty would be lost in that time frame.

“It looks like from I see in Congress, that they’re opting for a decade plus of depression rather than saying let’s correct our ways, let’s balance the budget, let’s bring our troops home,” said Paul, adding that the same course of printing money would continue – prolonging the agony and preventing a necessary correction.

Asked if civil unrest was a possibility in the midst of an economic depression, referencing a recent Army Times report concerning the use of active duty military being brought back from Iraq for “Homeland patrols” and “crowd control,” Paul questioned, “Are we going to have martial law or are we going to have more freedoms? The more problems that we have, the more likely it is that we’re going to have martial law, so I do think they anticipate and they plan for these things.”

Asked if criminal investigations and prosecutions of individuals on Wall Street should commence, Paul agreed but said that the main target of criminal inquiry should be the Federal Reserve board itself because, “That’s where the fraud is.”

“They want to be lawless, they don’t want to be held accountable,” he added.

Paul said that grand juries should be convened to take on prosecutions rather than the FBI becoming involved, stating, “We have proper authority with that and experience with it and the Enron case is a good example.”

The Congressman said that Greenspan and Bernanke should be criminally charged but that such an effort would be largely symbolic. “Morally speaking, they’re the culprits,” said Paul.

Asked what his solution to the crisis would be, Paul said, “I think the most important thing to do is to send the message that we’re going to quit living beyond our means and the president can set the standard for that and he has the most control under the Constitution on foreign policy – he can say no more wars, we’re done with the wars, we’re not going to take on the Russians, we’re not going to take on people in Venezuela, we’re going to start talking to the Cubans and bring our troops home and save hundreds of billions of dollars – that would send a powerful message that the dollar would respond to and oil prices would come down.”

Paul said that Americans had to accept a new idea of government that harked back to what the founders envisaged and that the welfare state would have to unravel along with aspirations of building a geopolitical empire.

“In the meantime the policy ought to be – shrink the size of government, decrease regulation, work towards sound money, remove the authority of the Fed to create money out of thin air and get tax reduction,” stated the Congressman. Paul added that eliminating the income tax would mean everybody becoming a lot richer and more money would be ploughed into the economy.

“It will not solve the problem, it just delays the inevitable,” said Paul of the bailout, adding that he expects the bill to pass in a move that would, “Defy the American people.”

“I think they get to the point where they think they’re like God and can control everything and they don’t realize that the market really is more powerful than all the bankers and all the politicians….Ultimately the underground economy is the real economy and I think they could over step themselves and hopefully we could come out with a better world afterwards,” concluded the Congressman.

 

Ron Paul Grills Bernanke on Wallstreet Bailout

http://www.youtube.com/watch?v=dv6rQ0U01Yc

 

Paul: ‘I could never support somebody who thinks that it’s funny to say bomb bomb bomb Iran.’

Think Progress

September 18, 2008

On MSNBC today, Rep. Ron Paul (R-TX) explained to host Norah O’Donnell that he refused former Sen. Phil Gramm’s entreaties for him to endorse Sen. John McCain (R-AZ) because he disagrees with him “on all the major issues,” especially foreign policy. “I mean I could never support somebody who thinks that it’s funny to say ‘bomb bomb bomb Iran,’” said Paul. “That, to me, is not somebody that I could endorse ever.” Watch it:

http://www.youtube.com/watch?v=mOb3cC2FVIg

 



WaMu: The Biggest Bank Collapse In U.S. History

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

 



Paulson’s former firm to be among largest beneficiaries of bailout

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.

Conflict Of Interest? Report Says Goldman Sachs ‘Among Biggest Beneficiaries’ Of Paulson’s Bailout
http://thinkprogress.org/2008/09/22/paulson-goldman-bailout/

 



White House Admits It Drew Up Bailout Months Ago

White House Admits It Drew Up Bailout Months Ago

George Washington’s Blog
September 24, 2008

No one could have seen this coming, right?

Well, actually, the White House has admitted that they drew up the bail out plan months ago:

[White House Deputy Press Secretary Tony] Fratto insisted that the plan was not slapped together and had been drawn up as a contingency over previous months and weeks by administration officials. He acknowledged lawmakers were getting only days to peruse it, but he said this should be enough.

But the government did nothing real to prevent the financial meltdown. Instead, it let the meltdown happen, and now is trying to ram through terrible and counter-productive legislation drafted previously by using fear tactics.

Does this sound familiar? It should.

 



Bailout: Not $700 Billion, More Like $5 Trillion

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.

Read Full Article Here

 

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.

Read Full Article Here

 

They Want Mama To Make it All Better! – Congresswoman Marcy Kaptur

http://www.youtube.com/watch?v=ANGsBNMY1_c

 

Rep Defazio On The Bailout Package

http://www.youtube.com/watch?v=ANGsBNMY1_c

Recent News:

Bernanke Admits Bailout is NOT Aimed at Helping Taxpayers
http://georgewashington2.bl..ke-admits-bailout-is-not-aimed-at.html

Real Estate Bigwig Zell Sees 2009 Recession
http://www.cnbc.com/id/26858394

Bailout Is Financial Equivalent Of The Patriot Act
http://www.iht.com/articles/2008/09/23/business/sorkin.php?pass=true

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
http://afp.google.com/article/ALeqM5iQvXaV8mO0SRtfD9FEWqf4Vyrzrg

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
http://ap.google.com/article/ALeqM5iRcJGft_Pr8uMaY1Bz9ieBSwBNTgD93CMVM80

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

U.S. Economy Collapse News Archive

 



Ron Paul: This Bailout Won’t Be the Last

Ron Paul: This Bailout Won’t Be the Last

http://www.youtube.com/watch?v=sZwPkTmqfpg

 

Ron Paul on CNN w/ John Roberts

http://www.youtube.com/watch?v=1sfUKZOHtRs

 

Ron Paul Blasts “Secret Government” Running Economy

http://www.youtube.com/watch?v=d73KlhUq1W8

 



The 12th Bank Collapse This Year

The 12th Bank Collapse This Year

CNN

September 20, 2008

Ameribank Inc. was shut down on Friday by the Office of the Thrift Supervision, making it the 12th bank this year to go under.

The Northfork, West Virginia bank had total assets of $115 million and total deposits of $102 million, according to a statement on the Federal Deposit Insurance Corporation Web site.

The FDIC was named receiver and announced that it entered into purchase and assumption agreements with Pioneer Community Bank, Inc., Iaeger, West Virginia, and the Citizens Savings Bank, Martins Ferry, Ohio, to take over all of Ameribank’s deposits.

Ameribank has five branches located in West Virginia and three branches located in Ohio. Branches in West Virginia will reopen on Monday and Ohio branches will reopen on Saturday.

All customer accounts were automatically transferred to the two new banks and the full amount of their deposits will automatically be insured, the FDIC said.

Customers of the banks can still access their money over the weekend by writing checks or using ATM or debit cards, according to the statement by the FDIC.

Read Full Article Here

Ross: 1,000 More Banks Will Fail
http://www.cnbc.com/id/26710362

UK: More Banks Will Fail
http://209.85.173.104/search?q..1&gl=us

List of Failed Banks
http://www.fdic.gov/bank/individual/failed/banklist.html

 



Lehman Brothers Bank Files For Bankruptcy

Lehman Brothers Bank Files For Bankruptcy

AP
September 15, 2008

Lehman Brothers, a 158-year-old investment bank choked by the credit crisis and falling real estate values, filed for Chapter 11 protection in the biggest bankruptcy filing ever on Monday and said it was trying to sell off key business units.

The filing was made in the U.S. Bankruptcy Court in the Southern District of New York by Lehman Brothers Holdings Inc., the bank’s holding company. The case had been assigned to Judge James M. Peck.

Lehman fell under the weight of $60 billion in soured real estate holdings, and the credit market’s dislocation ultimately forced it to seek court protection. The credit crisis has caused global banks to write down more than $300 billion in asset value since last year, and caused the shotgun sales of Merrill Lynch & Co. and Bear Stearns Cos.

Lehman’s bankruptcy filing marks the end of a Wall Street firm that started the U.S. cotton trade before the Civil War and financed the railroads that built a nation.

Read Full Article Here

FDIC Monitoring Lehman Impact
http://www.reuters.com/article/bondsNews/idUSWAT01005420080915

 



U.S. Taxpayers to Bailout AIG With $85 Billion

U.S. Taxpayers to Bailout AIG With $85 Billion

AP
September 17, 2008

Another day, but not just another bailout. This one’s a stunning government takeover.

In the most far-reaching intervention into the private sector ever for the Federal Reserve, the government stepped in Tuesday to rescue American International Group Inc. with an $85 billion injection of taxpayer money. Under the deal, the government will get a 79.9 percent stake in one of the world’s largest insurers and the right to remove senior management.

AIG’s chief executive, Robert Willumstad, is expected to be replaced by Edward Liddy, the former head of insurer Allstate Corp., according to The Wall Street Journal, citing a person it did not name. Willumstad had been at the helm of AIG since June.

Read Full Article Here

Ron Paul on AIG bailout…Bad Monetary Policy

http://www.youtube.com/watch?v=QpY6JvG7w6M

Stocks tumble after government bailout of AIG
http://news.yahoo.com/s/ap/20080917/ap_on_bi_st_ma_re/wall_street

AIG’s Collapse Would Have Impact Around the Globe
http://www.bloomberg.com/apps/news..&sid=adkrRxBFo5nA&refer=home

 



10th Bank Collapse This Year

10th Bank Collapse This Year

Bloomberg
August 29, 2008

Integrity Bank of Alpharetta, Georgia, was closed by U.S. regulators today, the 10th bank to collapse this year amid a surge in soured real-estate loans stemming from the worst housing slump since the Great Depression.

Integrity Bank, with $1.1 billion in assets and $974 million in deposits, was shuttered by the Georgia Department of Banking and Finance and the Federal Deposit Insurance Corp. Regions Financial Corp., Alabama’s biggest bank, will assume all deposits from Integrity, which was run by Integrity Bancshares Inc. The failed bank’s five offices will open on Sept. 2 as branches of Regions, the FDIC said.

“Depositors will continue to be insured with Regions Bank so there is no need for customers to change their banking relationship to retain their deposit insurance,’’ the FDIC said.

Banks are being closed at the fastest pace in 14 years as financial companies report more than $505 billion in writedowns and credit losses since 2007. California lender IndyMac Bancorp Inc., which had $32 billion in assets, was closed July 11 in the third-largest bank seizure, contributing to a 14 percent drop in the U.S. deposit insurance fund that had $45.2 billion at the end of the in the second quarter.

 

FDIC may borrow money from Treasury to see it through an expected wave of bank failures: report

Reuters
August 27, 2008

Federal Deposit Insurance Corp (FDIC) might have to borrow money from the Treasury Department to see it through an expected wave of bank failures, the Wall Street Journal reported.

The borrowing could be needed to cover short-term cash-flow pressures caused by reimbursing depositors immediately after the failure of a bank, the paper said.

The borrowed money would be repaid once the assets of that failed bank are sold.

“I would not rule out the possibility that at some point we may need to tap into (short-term) lines of credit with the Treasury for working capital, not to cover our losses,” Chairman Sheila Bair said in an interview with the paper.

Bair said such a scenario was unlikely in the “near term.” With a rise in the number of troubled banks, the FDIC’s Deposit Insurance Fund used to repay insured deposits at failed banks has been drained.

In a bid to replenish the $45.2 billion fund, Bair had said on Tuesday that the FDIC will consider a plan in October to raise the premium rates banks pay into the fund, a move that will further squeeze the industry.

The agency also plans to charge banks that engage in risky lending practices significantly higher premiums than other U.S. banks, Bair said.

The last time the FDIC had borrowed funds from the Treasury was at nearly the tail end of the savings-and-loan crisis in the early 1990s after thousands of banks were shuttered.

The fact that the agency is considering the option again, after the collapse of just nine banks this year, illustrates the concern among Washington regulators about the weakness of the U.S. banking system in the wake of the credit crisis, the Journal said.

Recent News:

Bankruptcy Filings Surge 29%
http://www.economicpolicyjournal.com/2008/08/bankruptcy-filings-surge-29.html

FDIC: Bank Profits Fell By 86% In 2nd Quarter
http://seattletimes.nwsource.com/html/busi..webbanks26.html

World Bank: More People In Poverty
http://www.reuters.com/article/worl..=RSS&feedName=worldNews

Dow Falls Another 240 Points
http://news.yahoo.com/s/ap/2..=1;_ylt=ArOpbuqd64sBzkF3Xyx3zOxv24cA

Merrill, Wachovia in Danger of Failing: Strategist
http://www.cnbc.com/id/26262..Cquote%7Ctext%7C&par=yahoo

Large U.S. bank collapse seen ahead
http://www.reuters.com/article/newsOne/idUSSP21695020080819

Deepening economic crisis ‘may trigger family breakdown’
http://www.dailymail.c..onomic-crisis-trigger-family-breakdown.html

Auto industry seeks $50B in loans from Congress
http://money.cnn.com/2008/08/23/news/economy/auto_bailout.ap/index.htm

Living the American dream in Brazil
http://english.aljazeera.net/focus/2008/08/200881884358873790.html

Illegal Immigrants Returning to Mexico in Record Numbers
http://www.foxnews.com/story/0,2933,409221,00.html

FDIC: Highest Level Of Troubled Banks Since 2003
http://news.yahoo.com/s/ap/20..s;_ylt=AiX6b2alma.c4GBC5tc9LJqs0NUE

FDIC Increasing Staff for Expected Increase in Bank Failures
Japan’s Mitsubishi takes over US bank

U.S. Economic Collapse News Archive

 



9th U.S. Bank Failure This Year

9th U.S. Bank Failure This Year

Bloomberg
August 23, 2008

Columbian Bank and Trust Co. of Topeka, Kansas, was closed by U.S. regulators, the nation’s ninth bank to collapse this year amid bad real-estate loans and writedowns stemming from a drop in home prices.

The bank, with $752 million in assets and $622 million in total deposits, was shuttered by the Kansas state bank commissioner’s office and the Federal Deposit Insurance Corp., the FDIC said yesterday in a statement.

Citizens Bank and Trust will assume the failed bank’s insured deposits. Columbian Bank’s nine branches will open Aug. 25 as Citizens Bank and Trust offices, the FDIC said. Customers can access their accounts over the weekend by writing checks or using ATM or debit cards.

“There is no need for customers to change their banking relationship to retain their deposit insurance coverage,’’ the FDIC said.

The pace of bank closings is accelerating as financial firms have reported more than $500 billion in writedowns and credit losses since 2007. The FDIC’s “problem’’ bank list grew by 18 percent in the first quarter from the fourth, to 90 banks with combined assets of $26.3 billion.

Prior to yesterday, the FDIC had closed 36 banks since October 2000, according to a list at fdic.gov. The U.S. shut 12 banks in 2002, the highest in the period, and 2005 and 2006 had no closures.

U.S. bank regulators closed Florida’s First Priority Bank on Aug. 1; Reno-based First National Bank of Nevada, Newport Beach, California-based First Heritage Bank, and Pasadena-based IndyMac Bancorp Inc. in July; Staples, Minnesota-based First Integrity Bank and ANB Financial in Bentonville, Arkansas, in May; Hume Bank in Hume, Missouri, in March; and Douglass National Bank in Kansas City, Missouri, in January.

Merrill, Wachovia in Danger of Failing: Strategist
http://www.cnbc.com/id/26262925..%7Cquote%7Ctext%7C&par=yahoo

Large U.S. bank collapse seen ahead
http://www.reuters.com/article/newsOne/idUSSP21695020080819

 



Our $100 Trillion National Debt

Our $100 Trillion National Debt

Lew Rockwell
August 7, 2008

The “official” debt of the United States is only around $10 trillion dollars as of August 6, 2008. This is a manageable number; we could pay it off in a few decades if we quit buying luxuries like food and clothing, and take a few other minor economy measures. Unfortunately, the “$10 trillion” number was produced by government accounting, which among other things allows one to ignore Social Security, Medicare, and the new prescription drug benefit. This is like ignoring rent, food, and utilities in your household budget… it will lead to a few bounced checks. Our real debt is about ten times higher.

Who says so? The President of the Dallas Federal Reserve, Richard W. Fisher. In a May speech at the Commonwealth Club of California, he states that the US national debt is close to $100 trillion. You can read his whole speech at the Federal Reserve web site.

The Real Debt

Here is what he said regarding the actual US debt:

“Add together the unfunded liabilities from Medicare and Social Security, and it comes to $99.2 trillion over the infinite horizon. Traditional Medicare composes about 69 percent, the new drug benefit roughly 17 percent and Social Security the remaining 14 percent.”

Interested readers will notice that the new prescription drug benefit is projected to be more fiscally crushing than all of Social Security.

Mr. Fisher points out that this $99.2 trillion will be a bit of a burden to pay off:

“Let’s say you and I and Bruce Ericson and every U.S. citizen who is alive today decided to fully address this unfunded liability through lump-sum payments from our own pocketbooks, so that all of us and all future generations could be secure in the knowledge that we and they would receive promised benefits in perpetuity. How much would we have to pay if we split the tab? Again, the math is painful. With a total population of 304 million, from infants to the elderly, the per-person payment to the federal treasury would come to $330,000. This comes to $1.3 million per family of four—over 25 times the average household’s income.”

You do have $1.3 million in your pocket, right? What, are you some kind of deadbeat?

Speaking of deadbeats, the “$99.2 trillion” estimate does not include the subprime bailout. So for those who like large round numbers, by the end of 2008 the real National Debt should be large, round, and about $100 trillion.

Read Full Article Here

Recent News:

U.S. Headed Toward Bankruptcy, Says Top Budget Committee Republican
http://www.cnsnews.com/public/content/article.aspx?RsrcID=33574

U.S. crude futures fall below $112
http://www.earthtimes.org/articles/show/225..n-3-below-112.html

Home foreclosure filings up 55 percent in July
http://news.yahoo.com/s/nm/20080814/bs_nm/usa_foreclosures_dc

Subprime Losses Top $500 Billion on Writedowns
http://www.bloomberg.com/apps/ne..7&sid=aSKLfqh2qd9o&refer=worldwide

Foreclosure fallout: Houses go for a $1
http://www.detnews.com/apps/pbcs.dll..13/METRO/808130360

Federal budget deficit nearly tripled in July to $102.8 billion
http://www.usatoday.com/news/w..udget-deficit_N.htm?loc=interstitialskip

How to Conceal Massive Economic Collapse
http://www.congresscheck.com/20..to-conceal-massive-economic-collapse/

Inflation Highest Since 1991
http://www.ft.com/cms/s/0/a8b27794-6a04-11dd-83e8-0000779fd18c.html

Consumer Prices Rise At Double The Expected Rate
http://news.yahoo.com/s/ap/20..rvHZMh.hDDbWuXtRZZaJZJv24cA

1/3 Owe More On Homes Than They’re Worth
http://www.bloomberg.com/apps/n..id=a3uzhDOF9FXI&refer=worldwide

Greenspan sees house price bottom in 2009: report
http://www.reuters.com/article/ousiv/idUSN1350807020080814

GAO: Most U.S. Corporations Don’t Pay Income Taxes
http://www.roguegovernment.com/news.php?id=11377

FDIC Fund Strained By Bank Failures
http://www.bloomberg.com/apps/new..z7p4wU&refer=worldwide

Wachovia to close mortgage offices in 19 states
http://www.bizjournals.com/triad/stories/2008/08/11/daily11.html

UK home repossessions rise by 48%
http://news.bbc.co.uk/2/hi/business/7548877.stm

Europe teeters on the brink of recession
Fed: More Banks Tightening Lending Standards
Who Made 270 million On Collapse of Bear Stearns
EUR/USD Drops Towards $1.4639 Support
RBS slumps to £691m loss
Fannie Mae Posts Massive $2.3B Loss
Greenspan Says Federal Company Would Best Ease Crisis

U.S. Economic Collapse News Archive

 



8th U.S. Bank Failure This Year

8th U.S. Bank Failure This Year

Reuters
August 1, 2008

WASHINGTON (Reuters) – SunTrust Bank (STINews) has acquired the insured deposits of Florida-based First Priority Bank, the eighth U.S. bank to fail this year as financial institutions grapple with a weak economy and a credit crisis precipitated by falling home prices.

The Federal Deposit Insurance Corp said on Friday that Florida regulators closed the bank, which had $259 million in assets and $227 million in deposits. The FDIC was named receiver.

The cost of the failure to the federal insurance fund is estimated to be $72 million, the FDIC said.

 

FDIC warns four US banks over liquidity

Financial Times
August 1, 2008

The Federal Deposit Insurance Corporation revealed on Friday that it had issued warnings to four small US banks that lacked sufficient reserves to cover potential loan losses.

The cease-and-desist orders issued in June said the four banks needed to raise more capital, expand their loss allowances and better oversee and diversify their loan portfolios. A fifth bank was cited for violating consumer protection laws.

Losses on mortages and other loans have helped bring down eight US banks this year, including one small Florida institution on Friday. Last month, Indymac, a California lender with $32bn in assets, became one of the largest banks to go under in US history. It filed for Chapter 7 bankruptcy protection on Friday.

The banks receiving cease-and-desist orders in June were MetroPacific Bank in Irvine, California; Bank Haven in Haven, Kansas; Clarkston State Bank in Clarkston, Michigan; and Hastings State Bank in Hastings, Nebraska.

Read Full Article Here

 



Stressed banks borrow record amount from Fed

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.

Read Full Article Here

 

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.

Read Full Article Here

 

Inverview with George Green – (7/16/2008)

http://video.google.com/videoplay?docid=7618947388652774139&hl=en

Recent News:

Bush signs housing bill in private
http://www.politico.com/news/stories/0708/12166.html

Soaring energy bills set to push inflation to 16-year high
http://www.dailymail.co.uk/news/ar..set-push-inflation-16-year-high.html

GM Has $15.5 Billion Loss on U.S. Sales Drop, Leases
http://www.bloomberg.com/apps/news?pid=20601087&sid=agMEuJ_r_yxA&refer=worldwide

Venezuela to Nationalize Spanish Bank
http://english.cri.cn/2947/2008/08/01/1821s388058.htm

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

U.S. Economic Collapse News Archive

 



FDIC Takes Over Two More Failed Banks

FDIC Takes Over Two More Failed Banks

AP
July 26, 2008

The 28 branches of 1st National Bank of Nevada and First Heritage Bank, operating in Nevada, Arizona and California, were closed Friday by federal regulators.

The banks, owned by Scottsdale, Ariz.-based First National Bank Holding Co., were scheduled to reopen on Monday as Mutual of Omaha Bank branches, the Federal Deposit Insurance Corp. said.

The FDIC said the takeover of the failed banks was the least costly resolution and all depositors – including those with funds in excess of FDIC insurance limits – will switch to Mutual of Omaha with “the full amount of their deposits.”

The FDIC also said accountholders can access their funds during the weekend by writing checks or using ATM or debit cards.

Read Full Article Here

 

Wachovia Joins the Financial Apocalypse

JBS
July 22, 2008

It’s beginning to look as if Fortis was right. In June the Belgium-Dutch financial giant, itself beset by financial woes, warned, according to a Dutch paper, that the “complete collapse of the U.S. financial markets” was in the offing, just days or weeks away.

Maybe it won’t be a “complete” collapse, but the dire warning is beginning to appear more credible daily. Just days after the Fortis warning, letters from Senator Charles Schumer speculating about the “possible collapse of big mortgage lender IndyMac Bancorp Inc.” set off a run on that ailing mortgage lender with depositors withdrawing more than $1.3 billion in just 11 days.

In the weeks since there has been increasing speculation about the stability of both the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). These holdovers from the Roosevelt Administration’s ill-conceived New Deal presently own or guarantee half of the $12 trillion U.S. mortgage market, yet they were characterized recently as “insolvent” by former Federal Reserve President William Poole.

In a free market, when you perform poorly your business might fail. But Poole, a consummate government regulator, thinks Fannie Mae and Freddy Mac are too big to fail. “Clearly they must be supported,” he said according to a July 11 Reuters report. “They (the U.S. government) cannot allow that amount of assets … to go into limbo.” In other words, according to Poole, the federal government must take money (a lot of money!) from some and give it to others. As economist Frederic Bastiat eloquently pointed out, that is socialism, the law run amok and turned on its head.

On top of IndyMac and Fannie and Freddie, the bad news from the financial sector keeps coming. On Tuesday, Wachovia Corp. reported striking losses totaling nearly $9 billion for the quarter. “Our reported results today are clearly a disappointing performance for which we take responsibility,” Wachovia CEO Bob Steel told analysts on a conference call. The nation’s fourth largest bank also noted that it would eliminate as many as 10,750 positions.

Read Full Article Here

WaMu Slumps as Gimme Credit Cites Liquidity Concern
http://www.bloomberg.com/apps/news?pid=20601110&sid=a3479q5QfJhw

Two Troubled U.S. Banks Post Big Losses
http://www.iht.com/articles/2008/07/22/business/bank.php

Bank Gave Counterfeit Bills, Couple Says
http://www.local6.com/news/16960809/detail.html

8,500 Banks Will Fail
http://cryptogon.com/?p=2994

Evidence of the US Banking System Teetering on the Brink of Collapse
http://www.marketoracle.co.uk/Article5594.html

Paulson Says Banks Safe & Sound (liar)
http://business.timesonline.co.uk/../united_states/article4368749.ece

Arabs Buying Up Failing Western Banks
http://www.israelnationalnews.com/News/News.aspx/126866

 



Police Threaten IndyMAC Customers With Arrest

Police Threaten IndyMAC Customers With Arrest

Daily News
July 15, 2008

Police ordered angry customers lined up outside an IndyMac Bank branch to remain calm or face arrest Tuesday as they tried to pull their money on the second day of the failed institution’s federal takeover.

At least three police squad cars showed up early Tuesday as tensions rose outside the San Fernando Valley branch of Pasadena-based IndyMac.

Federal regulators seized Pasadena-based IndyMac on Friday and reopened the bank Monday under the control of the Federal Deposit Insurance Corporation. Deposits to $100,000 are fully insured by the FDIC.

Worried customers with deposits in excess of insured limits flooded IndyMac Bank branches on Monday, demanding to withdraw as much money as they could or get answers about the fate of their funds.

When it was clear some wouldn’t get in before closing, FDIC employees apparently took down names and told them to return Tuesday.

Other customers began lining up at 1:30 a.m. Tuesday, and by dawn, tensions escalated because people on the list were getting priority.

By 8 a.m., about 50 people on the list waited in one line and many more waited in another.

Five people were allowed in at a time.

Customers became infuriated, and police told them they could be arrested if they didn’t remain calm.

Police stood by at some other branches around Southern California but there were no other reports of problems.

 

$1 Billion of uninsured deposits lost in IndyMAC collapse

Scared IndyMAC Customers Demand Their Cash
http://news.yahoo.com/s/ap/20080716/ap_..hV3SphAft82dzYRq61lv24cA

IndyMac depositors line up for cash after seizure
http://www.reuters.com/article/topNews/idUS..pNews&rpc=22&sp=true

FBI looking into fraud at IndyMac Bancorp
http://www.azcentral.com/news/artic..mortgage-investigation0716-ON.html

Merill Lynch Posts Loss Of $4.6 Billion
http://news.yahoo.com/s/afp/2..gVyF2eFsdB6zZUjUSc5tL2oOrgF

Bank Shares Plummet Amid Stability Fears
http://biz.yahoo.com/rb/080714/financial_shares.html?printer=1

Banks hit by fallout from the crisis at IndyMac
http://www.latimes.com/business/la-fi-indymac15-2008jul15,0,431088.story

List Of Troubled Banks Worries Wall Street
http://abcnews.go.com/Blotter/story?id=5374205

JP Morgan CEO: ’We’re very early in the loss curve’
http://www.housingwire.com/2008/07/..mon-prime-mortgages-look-terrible/

 



The Second Largest Bank Failure in U.S. History

The Second Largest Bank Failure in U.S. History
IndyMac Bank seized by federal regulators

AFP
July 11, 2008

The federal government took control of Pasadena-based IndyMac Bank on Friday in what regulators called the second-largest bank failure in U.S. history.

Citing a massive run on deposits, regulators shut its main branch three hours early, leaving customers stunned and upset. One woman leaned on the locked doors, pleading with an employee inside: “Please, please, I want to take out a portion.” All she could do was read a two-page notice taped to the door.

The bank’s 33 branches will be closed over the weekend, but the Federal Deposit Insurance Corp. will reopen the bank on Monday as IndyMac Federal Bank, said the Office of Thrift Supervision in Washington. Customers will not be able to bank by phone or Internet over the weekend, regulators said, but can continue to use ATMs, debit cards and checks. Normal branch hours, online banking and phone banking services are to resume Monday.

Read Full Article Here

 



Another Fed Cut May Spur Gold Rally

Another Fed Cut May Spur Gold Rally

Dilip Kumar Jha
Business Standard
February 17, 2008

Fbiiraqisbein_mn

More interest rate cuts by the US Federal Reserve to protect its slowing economy are likely to strengthen gold prices further with the metal being a safe haven for investors having offered handsome returns in the last year-and-a-half.

Additionally, closure of mines in the wake of power shortage in South Africa have affected supplies badly. As a consequence, the metal has enjoyed great support from retail and institutional investors which will continue to boost it in the future.

Thus, gold is set to touch $915 an ounce this week. However, after breaching this level, the metal may take another two to three months to hit the $950 an ounce-mark.

In India, however, standard gold may see good support at the present level of Rs 11,630 per 10 grams and is likely to rally beyond Rs 11,800 per 10 grams this week. The breach of the Rs 12,000-mark is on the cards, too.

The US Federal Reserve cut the key lending rate twice (75 and 50 basis points) last month to 3 per cent, providing fresh funds for the US and world economy.

However, experts believe the rate cuts haven–t help revive the economy. Hence, prospects of a further 50 bps cut looms large.

High prices have dampened demand in India severely as total imports in January were a meagre 4 tonnes from 62.5 tonnes in January 2007.

India, the world–s largest gold consumer, is a market sensitive to price fluctuations. The nominal imports in January were a result of the knee-jerk reaction to volatile and high prices.

–Even if the price moves in the higher range, consumers will get used to it and demand will resume,– said Jayant Manglik, head (commodities) at Religare Enterprises. Manglik believes that both gold demand and prices will continue to go up.

In the last year-and-a-half, gold offered 32 per cent returns which other asset classes failed to achieve. Reportedly, the International Monetary Fund (IMF) is unlikely to offload gold in the physical market before two to three months as it may wait for prices to rise further.

Meanwhile, investors from other classes are gradually shifting their funds towards gold which is evident from the record gold trading in London during January.

Trading volumes in London rose to a 19-month high in January at an estimated average of 25.3 million ounces. Trading volumes in January 2007 stood at 17.1 million ounces.

Gold remained volatile last week in Jhaveri Bazar, a major spot market in Mumbai, with prices touching high of Rs 11,895 per 10 grams on Monday.

However, weak sentiment continued to prevail throughout the week with fresh orders for weddings drying up. The metal ended the week at Rs 11,630 per 10 grams.

 

Oil surges above $96 to one-month high

Randy Fabi
Reuters
February 15, 2008

Fbiiraqisbein_mn

Oil rose above $96 a barrel on Friday, surging to a one-month high as investors fixated on the possibility — however slim — of OPEC member Venezuela halting supplies to top consumer the United States.

The South American country, one of the largest crude exporters to the United States, cut shipments to Exxon Mobil (XOM.N: Quote, Profile, Research) earlier this week after the U.S. oil major won court orders to freeze over $12 billion of Venezuela’s assets.

Venezuelan President Hugo Chavez, a critic of U.S. President George W. Bush, imposed the embargo on Exxon after threatening to cut off all shipments to the United States in the row over nationalization of Exxon assets in Venezuela.

U.S. crude CLc1 was up 45 cents at $95.91 by 1015 GMT, after earlier hitting $96.05. London Brent crude LCOc1 rose 25 cents to $95.41.

“I can’t believe the Venezuelans will actually go ahead and do that, but as long as there is this uncertainty it’s going to continue to have a bullish impact,” said Tony Machacek at Bache Commodities.

U.S. Energy Secretary Sam Bodman said on Thursday he did not expect Exxon to have trouble replacing oil supplies from Venezuela, but said the nation’s Strategic Petroleum Reserve would be available if needed. nN13311576

“Venezuela will not affect the crude supply fundamentally. There will be some risk premium but there will not be any natural shortfall in crude,” said Gerard Burg of National Australia Bank in Sydney.

Major oil producers in the Middle East have already assured the United States they could compensate for a supply disruption if Venezuela slows exports.

Read Full Article Here

FDIC Chairperson Bair: “Housing Crisis Has Just Begun”
http://www.cnbc.com/id/22933893

Federal Reserve gives away Billions to banks!
http://mparent7777-2.blogspot.com..gives-away-billions-to.html

OPEC considers dumping US dollar
http://www.presstv.ir/detail.aspx?id=43221&secti..3510213

Recession to be longer than usual: University of Michigan
http://www.reuters.com/article/domesticNews/idUSN0826726720080208

Imploding Credit Bubble to Hit $1 Trillion
http://www.washingtonindependent.com/view/part-two-the-united

Banks Begging For Government Bail Out
http://www.reuters.com/article/ousiv/idUSN1440273120080214

Global Inflation Climbs To Historic Levels
http://www.iht.com/articles/2008/02/12/business/inflate.php?page=1

Credit Card Rates Continue To Rise
http://www.washingtonpost.com/..0/AR2008021002537_pf.html

Chavez ‘may cut oil supplies to US’
http://www.spacewar.com/2006/080210153450.k8y2za8p.html

A $43 Trillion Dollar Market That Most People Have Never Heard Of
http://www.huffingtonpost.com/jac..ar_b_86199.html

World bourses lost 5.2 trillion dlrs in January
http://afp.google.com/article/ALeqM5gFCytl_9hgGZdhCYPN01fbFqosHg

G.M. Loss Worst Ever for U.S. Carmaker
http://www.wsmv.com/automotive/15278246/detail.html?rss=nash&psp=news

 



Bush Unveils $3.1 Trillion Spending Plan

Bush Unveils $3.1 Trillion Spending Plan

AP
February 4, 2008

http://www.youtube.com/watch?v=H5HYIAQn4Lg

President Bush unveiled a $3.1 trillion budget on Monday that supports sizable increases in military spending to fight the war on terrorism and protects his signature tax cuts.

The spending proposal, which shows the government spending $3 trillion in a 12-month period for the first time in history, squeezes most of government outside of national security, and also seeks $196 billion in savings over the next five years in the government’s giant health care programs _ Medicare for the elderly and Medicaid for the poor.

Even with those savings, Bush projects that the deficits, which had been declining, will soar to near-record levels, hitting $410 billion this year and $407 billion in 2009. The all-time high deficit in dollar terms was $413 billion in 2004.

Democrats attacked Bush’s final spending plan as a continuation of this administration’s failed policies which wiped out a projected 10-year surplus of $5.6 trillion and replaced it with a record buildup in debt.

“Today’s budget bears all the hallmarks of the Bush legacy _ it leads to more deficits, more debt, more tax cuts, more cutbacks in critical services,” said House Budget Committee Chairman John Spratt, D-S.C.

Read Full Article Here

 

Platinum stable near record as gold solid above $900

Reuters
February 7, 2008

Fbiiraqisbein_mn

Cash platinum was hemmed in a tight band near its record high on Friday as another record high price in Japanese futures prices provided solid support due to concerns over supply problems in South Africa.

Spot gold was solid above $900 an ounce as the metal was supported despite the dollar jumping more than 1 percent against the euro on Thursday.

“There is no ceiling for platinum now as long as supply worries in South Africa remain,” said Tatsuo Kageyama, an analyst at Kanetsu Asset Management in Tokyo.

“You just can’t sell platinum considering that the country which supplies 80 percent of the world’s supply is facing trouble,” Kageyama said.

Cash platinum was trading at $1,840/1,850 an ounce as of 9:43 p.m. ET, from $1,841/1,846 late in New York on Thursday when it hit a record high of $1,850 an ounce the previous day.

Read Full Article Here

 

Peter Schiff On Fox Business News – (2/4/2008)

http://www.youtube.com/watch?v=JKCNZFJWiRc

Signs of Decline: New York Shoppers Can Now Pay in Euros
http://www.reuters.com/arti..RSS&feedName=domesticNews

Dozens of U.S. banks will fail by 2010: analyst
http://www.canada.com/ottawa..2-f8fbb851a367&k=53982

ICBC Deposes Citigroup as Chinese Banks Rule in New World Order
http://www.bloomberg.com/apps/ne..BhYtHt.s3gM&pid=20601103

Greenback Has Lost 30% in Past 7 Years, Becomes “Bernanke Peso”
http://www.dailyreckoning.com.au/greenback/2008/02/04/

IMF Calls For Revamping Global Government
http://www.imf.org/external/pubs/ft/fandd/2007/12/boughton.htmauthor

China’s Inflation Hits American Price Tags
http://www.nytimes.com/2..7600&en=51da850cefb4bbf5&ei=5087

UAE Likely To Revalue Dollar Pegged Currency
http://www.middle-east-online.com/english/business/?id=24186

U.S. recession could be worse than recent downturns
http://www.reuters.com/article/newsOne/idUSN0563297420080205

U.S. loses jobs for first time in 4-1/2 years
http://www.reuters.com/article/ousiv/idUSN3134479520080201

Zimbabwe Inflation At Over 26,000%
http://news.scotsman.com/world/Mugabe-in-poll-setback-as.3734498.jp

U.S. Loses Its Status As World Economic Power
http://www.newsday.com/news/o..n31,0,2812464,print.story

FDIC Gears Up For Large Bank Failure
http://www.marketwatch.com/news/story..yhoof&print=true&dist=printTop

 



US Headed for Housing Depression

US Headed for Housing Depression

Crikey
September 28, 2007

Official figures showed that the US economy grew at a strong 3.8% in the June quarter, before all the subprime turmoil hit in July and August, but the US housing slump continues to deepen.

Would it be too dramatic to call it a housing depression? Not after the latest figures released overnight.

American homebuilders are now holding more than 8 months supply of built but unsold houses on their books (and remember these are new and completed new homes: the figures for existing homes will be out in the next day or so).

And economists are now saying that the true extent of the slump in new homes is being understated in the official figures from the US Census Bureau. For example, the latest report does not take into account the rising level of cancellation rates or sales inducements that builders have reported in recent months.

According to the Census Bureau report, new homes sold at an annual pace of 795,000 in August, down 8% from the revised 867,000 sales level in July. It was the slowest pace of sales since June 2000 and was worse than all forecasts made ahead of the release of the report.

The Bureau’s report also showed the median price of a new home fell 7.4% from August 2006 to $US225,700, and the stockpile of new homes on the market rose to an 8.2 month supply. That fall in the median house price was the largest drop in the annual median price since 1970!

And according to a report in the Financial Times: “The US economy faces a 40 to 45 per cent risk of recession induced by the housing market downturn, the chief executive of Freddie Mac, one of the two quasi US Government sponsored mortgage insurers, has warned.”

And in London, the Telegraph reports that leading US investment bank, Goldman Sachs, has abandoned its ultra-bullish view of the world economy, warning of a likely recession in Japan and mounting risks that US property slump could spread to parts of Europe.

Goldman said in a report called, “The Global Economy Hits a Crunch”, that it was no longer sure that Asia and Europe would be able to make up for slowing US growth.

 

Gold Prices Surge As Dollar Falls to Low

AP
September 29, 2007

NEW YORK (AP) — Gold rose on Friday to the highest level since 1980 as the U.S. dollar scavenged new lows against the euro and oil prices headed near record territory.

Commodities were set to end the third quarter with substantial gains, despite a bumpy ride through August when concerns about the availability of credit roiled financial markets. Crude prices rose on Friday, while industrial metals and agriculture futures traded mixed.

Meanwhile, gold breached $750 an ounce as investors sought shelter in precious metals from the inflationary signs of rising oil prices and a weakening dollar. The dollar’s decline against the euro has been precipitous this week, as the greenback has slid to a fresh low for seven straight trading days. On Friday, the European currency purchased a record $1.4207.

There also were signs of strong gold demand from India this week, said Tom Pawlicki, an analyst with MF Global in Chicago. India, the world’s largest gold consumer, is in the midst of its wedding and festival season, a traditional time of gold-buying for gifts and investment. The country’s economy has been robust, and the Indian rupee has strengthened as a result.

December gold advanced $11.60 to $751.50 an ounce at midday on the New York Mercantile Exchange — the highest since an ounce fetched more than $850 in January 1980, according to Thomson Financial data. December silver jumped 32 cents to $13.965 an ounce.

Gold’s recent climb has been fast and sharp. Jon Nadler, senior analyst with Kitco Bullion Dealers, cautioned in a note to clients that gold “is also taking on some ominous and purely speculative features that may not see it correct in orderly fashion, or end too well.”

Oil prices headed for a strong finish to the quarter as crude extended the sharp gains a day earlier despite a general lack of fundamental, bullish news. The current supports for oil remain the dollar’s continued decline, a slight shortage of supply at a key delivery point in Cushing, Okla., and unrest in the oil-producing region of Nigeria, JPMorgan analysts said in a report.

A rise in speculative buying, typical at the month’s and quarter’s end, also helped prices rally, Pawlicki said.

Light, sweet crude for November delivery gained 42 cents to $83.30 on the Nymex, shy of the all-time peak $83.90 reached last week. Gasoline futures slipped 1.64 cents to $2.0775 a gallon.

Elsewhere, industrial metals traded in a narrowly mixed range. Nickel and zinc prices dipped about 1 percent on the London Metal Exchange. Copper edged higher in London and New York

In Chicago, corn and soybean futures gave back a portion of the huge gains made a day earlier, while wheat continued its rise. Strong export demand for U.S. agriculture products has prodded prices of soybeans to three-year highs and wheat to an-all time record. The wheat market, in particular, has been strained by shrinking global supplies, which has supported a rash of buying of U.S. grain.

December wheat rose 5 cents to $9.38 a bushel on the Chicago Board of Trade. Corn for December delivery fell 11.25 cents to $3.755 a bushel, and November soybeans dropped 10.5 cents to $9.985 a bushel.

Related News:

35K state workers get layoff notices
http://www.lsj.com/apps/pbcs.dll/arti….9290338/1001/news

As Prices Soar, U.S. Food Aid Buys Less
http://www.nytimes.com/2007/09/29/worl…f=slogin&oref=slogin

Freddie Mac chief warns of recession
http://www.ft.com/cms/s/0/8b86afc6-6d36-11dc-ab19-0000779fd2ac.html

Oil Prices Rise As Dollar Falls
http://biz.yahoo.com/ap/070928/oil_prices.html?.v=10

FDIC Shuts Down NetBank Due to Defaults
http://biz.yahoo.com/ap/070928/netbank_closure.html?.v=14

Gold Hits 28 Year High
http://ca.news.yahoo.com/s/reuters/0….ets_precious_col_25

EU’s Almunia Worried By Dollar’s Fall
http://www.reuters.com/article/ousiv/idUSL2843104120070928?sp=true

New-Home Sales Tumble to 7-Year Low
http://www.breitbart.com/article.ph….how_article=1

U.S. Government About to be Broke
http://www.cnn.com/2007/POLITICS/09/24/bush.budget/index.html

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