– IMF Says Advanced Economies Already in Depression (Bloomberg):
Feb. 7 (Bloomberg) — Advanced economies are already in a “depression” and the financial crisis may deepen unless the banking system is fixed,International Monetary Fund Managing Director Dominique Strauss-Kahn said.
“The worst cannot be ruled out,” Strauss-Kahn said in Kuala Lumpur, where he was attending a gathering of central bankers from Southeast Asia. “There’s a lot of downside risk.”
– We’re in denial: afraid to face up to the real causes of recession (Telegraph):
As Niall Ferguson, professor of history at Harvard University, wrote in the Financial Times: “The reality being repressed is that the western world is suffering a crisis of indebtedness.” In which case, pumping out yet more debt will not be the answer. It is simply a short-term fix that in the long-run creates an even bigger disaster, like giving a shivering alcoholic a case of Special Brew.
Dr Ros Altmann, a former adviser to Number 11, points out: “They punish those who actually did the right thing [savers], while benefiting the very groups (the banks in particular) whose actions caused this mess.”
– Canada January job losses biggest on record (Reuters)
– Barclays set to give big bonuses to bankers who scuttled Woolworths (Times Online)
– Barack Obama’s army is mobilised in bid to save his recovery plan (Times Online):
It is the first occasion since November that the President has deployed the massed ranks of his volunteers. His campaign machine, now calling itself Organising for America, issued the mobilisation call last week to a database of 13 million supporters. Even among loyal troops some admit to harbouring doubts. Albert Ngoytz, in Des Moines, Iowa said: “We worked so hard to beat Hillary but we don’t understand why all these Clintonian people got the top jobs.”
(Obama is a puppet of the elite, thats why: Obama: Trilateral Commission Endgame. The U.S. is still suffering from ‘Hopenosis’, but it’s soon all over.)
– Obama pushes stimulus plan while GOP pushes back (AP):
WASHINGTON (AP) — President Barack Obama on Saturday championed his economic stimulus plan as “absolutely necessary” — if imperfect — while Senate Republicans dug in against an $827 billion measure they said hadn’t even been written, let alone properly reviewed or sufficiently revised.
– German economy minister offers to resign (Financial Times)
– Will Ukraine follow Iceland into financial meltdown? (McClatchy)
– GM may cut thousands of salaried workers-report (Reuters)
– 38000 companies expected to go bust (Telegraph)
– CBO sees accelerating US budget deficit (Reuters)
– Salt wars break out as demand escalates (Financial Times)
– UN halts aid to Gaza after Hamas seizure (Independent)
– Can the all-seeing, all-knowing Google be trusted to rule the world? (Times Online)
– ‘Up to 40 dead’ in Australia wildfires (Telegraph)
– China orders $13-billion drought relief for wheat growers (Los Angeles Times)
– Child porn scourge creates more suspects than can be arrested (Edmonton Sun)