– How We Got Here – The 2008 Financial Crisis For Dummies (ZeroHedge, July 26, 2015):
It could never happen again, right?
– How We Got Here – The 2008 Financial Crisis For Dummies (ZeroHedge, July 26, 2015):
It could never happen again, right?
– Bernanke Finally Reveals, In One Word, Why The Financial System Crashed (ZeroHedge, March 4, 2014):
Now that Ben Bernanke is no longer the head of the Fed, he can finally tell the truth about what caused the financial crash. At least that’s what a packed auditorium of over 1000 people as part of the financial conference staged by National Bank of Abu Dhabi, the UAE’s largest bank, was hoping for earlier today when they paid an exorbitant amount of money to hear the former chairman talk.Bernanke confirmed as much when he said he could now speak more freely about the crisis than he could while at the Fed – “I can say whatever I want.”
So what was the reason, according to the man who was easily the most powerful person in the world for nearly a decade?
“Overconfidence.” (no, not “weather”)
Yup. That’s it.
The United States became “overconfident”, he said of the period before the September 2008 collapse of U.S. investment bank Lehman Brothers. That triggered a crash from which parts of the world, including the U.S. economy, have not fully recovered.
“This is going to sound very obvious but the first thing we learned is that the U.S. is not invulnerable to financial crises,” Bernanke said.
Actually what is going to sound even more obvious, is that subprime was not contained.
– What’s Starting Now Will Be Much More Terrifying Than 2008 (King World News, Jan 25, 2014)
– Baltic Dry Continues Collapse – Worst Slide Since Financial Crisis (ZeroHedge, Jan 14, 2014):
Despite ‘blaming’ the drop in the cost of dry bulk shipping on Colombian coal restrictions, it seems increasingly clear that the 40% collapse in the Baltic Dry Index since the start of the year is more than just that. While this is the worst start to a year in over 30 years, the scale of this meltdown is only matched by the total devastation that occurred in Q3 2008. Of course, the mainstream media will continue to ignore this dour index until it decides to rise once again, but for now, 9 days in a row of plunging prices is yet another canary in the global trade coalmine and suggests what inventory stacking that occurred in Q3/4 2013 is anything but sustained.
Baltic Dry costs are the lowest in 4 months, down 40% for the start of the year, and the worst start to a year in over 30 years…
As we noted yesterday…
Of course, we are sure the ‘lead’ that the Baltic Dry seems to have over global macro will be quickly ignored…
The U.S. Capitol looms in the background of a sign on the National Mall reminding visitors of the closures to all national parks due to the federal government shutdown in Washington October 3, 2013. (Reuters/Kevin Lamarque)
Michel Chossudovsky is an award-winning author, professor of economics, founder and director of the Centre for Research on Globalization, Montreal and editor of the globalresearch.ca website.
– Shutdown of US govt & ‘debt default’: Dress rehearsal for privatization of federal state system? (RT, Oct 15, 2013):
By Michel Chossudovsky
The ‘shutdown’ of the US government and the financial climax associated with a deadline date, leading to a possible ‘debt default’ by the federal government, is a money-making undertaking for Wall Street.
Several overlapping political and economic agendas are unfolding. Is the shutdown – implying the furloughing of tens of thousands of public employees – a dress rehearsal for the eventual privatization of important components of the federal state system?
A staged default, bankruptcy and privatization is occurring in Detroit (with the active support of the Obama administration), whereby large corporations become the owners of municipal assets and infrastructure.
The important question: could a process of ‘state bankruptcy’, which is currently afflicting local level governments across the land, realistically occur in the case of the central government of the United States of America?
This is not a hypothetical question. A large number of developing countries under the brunt of IMF ‘economic medicine’ were ordered by their external creditors to dismantle the state apparatus, fire millions of public sector workers as well as privatize state assets. The IMF’s Structural Adjustment Program (SAP) has also been applied in several European countries.
Tags: Bailout, Banking, Barack Obama, Ben Bernanke, Bonds, Bush administration, Debt, DHS, Dictatorship, Economy, EU, Europe, Fascism, Fed, Federal Reserve, Financial Crisis, Food stamps, GDP, George Bush, Global News, Government, Homeland Security, IMF, Keynesianism, Michel Chossudovsky, Military, military-industrial complex, New World Order, Obama administration, Pentagon, Politics, Quantitative Easing, TARP, U.S., Wall Street
– Red Cross Launches Emergency Food Aid Plan in the UK – First Time Since World War II (Liberty Blitzkrieg, Oct 12, 2013):
Welcome to the global recovery folks. A recovery that is so strong in the UK, the Red Cross has been called in to provide food aid for the first time since World War II. Nothing spells happy days are here again like that sort of news.
Oh, didn’t participate in the global recovery? No worries, oligarchs have got you covered and will happily offer you a piece of bread in between flat purchases in the City of London so that you remain quietly and apathetically planted squarely in front of the television . The “recovery” was and is a gigantic heist. Nothing more, nothing less.
From the Independent:
The Red Cross will this winter start collecting and distributing food aid to the needy in Britain for the first time since the Second World War, as welfare cuts and the economic downturn send soaring numbers of people to soup kitchens and food banks across Europe.
In what could be the start of an increased role in Britain for the Geneva-based charity best known for its work in disaster zones, its volunteers will be mobilised to go into supermarkets across the country at the end of November and ask shoppers to donate dry goods. The British Red Cross will then help FareShare, a charity working with the Trussell Trust and Tesco, distribute the packets and tins to food banks nationwide.
Britain is just one of many countries where families are struggling to put food on the table. In a report released today into the devastating humanitarian impact of Europe’s financial crisis, the Red Cross recorded a 75 per cent increase in the number of people relying on their food aid over the last three years. At least 43 million people across the Continent are not getting enough to eat each day and 120 million are at risk of poverty. Continue reading »
– It Is Happening Again: 18 Similarities Between The Last Financial Crisis And Today (Economic Collapse, July 25, 2013):
If our leaders could have recognized the signs ahead of time, do you think that they could have prevented the financial crisis of 2008? That is a very timely question, because so many of the warning signs that we saw just before and during the last financial crisis are popping up again. Many of the things that are happening right now in the stock market, the bond market, the real estate market and in the overall economic data are eerily similar to what we witnessed back in 2008 and 2009. It is almost as if we are being forced to watch some kind of a perverse replay of previous events, only this time our economy and our financial system are much weaker than they were the last time around. So will we be able to handle a financial crash as bad as we experienced back in 2008? What if it is even worse this time? Considering the fact that we have been through this kind of thing before, you would think that our leaders would be feverishly trying to keep it from happening again and the American people would be rapidly preparing to weather the coming storm. Sadly, none of that is happening. It is almost as if they cannot even see the disaster that is staring them right in the face. But without a doubt, disaster is coming.
The following are 18 similarities between the last financial crisis and today…
– H/t reader M.G.:
“Adding to this mess, here is a story from Cyprus. They are jailing people for debt. Didn’t the 19th century teach these clowns anything? How can people pay if they are in jail?
Here is the link. Insane.”
You can’t make this stuff up!
– Rise in debtors adds to prison overcrowding (Cyprus Mail, July 23, 2013):
THE ALREADY over-full Nicosia Central Prisons is becoming even more crowded as the financial crisis worsens and more people are being jailed for non-payment of fines and other debts.
Prison Governor Giorgos Tryfonides told the Cyprus News Agency (CNA) that efforts were being made to help such convicts pay off their debts in instalments.
“We are trying our best to make plans for payment of debt so an arrangement can be made with the attorney-general to postpone any punishment as long as the instalment is accepted by the plaintiff,” he said.
Due to the crisis, the number of people facing jail for financial reasons is on the rise compared to other years, Tryfonides said, adding on certain days up to five people might be imprisoned for similar offences.
– Financial Crisis: Now burns Slovenia (Ria Novosti, April 2, 2013):
Slovenia wants to get its financial crisis without external aids under control, writes the newspaper “Novye Izvestia” on Tuesday.
According to the Slovenian Uros Cufer finance minister wants his country is not the example of Cyprus follow and do not ask the EU and the IMF for help.
– Will The Banking Meltdown In Cyprus Be A “Lehman Brothers Moment” For All Of Europe? (Economic Collapsde, March 19, 2013):
Cyprus lawmakers may have rejected the bank account tax, but the truth is that the financial crisis in Cyprus is just getting started. Right now, the two largest banks in Cyprus are dangerously close to a meltdown. If they fail, depositors could end up losing virtually all of their money. You see, the banking system of Cyprus absolutely dwarfs the GDP of that small island nation. Cyprus is known all over the world as a major offshore tax haven, and wealthy Russians and wealthy Europeans have been pouring massive amounts of money into the banking system over the last several decades. Yes, those bank deposits are supposed to be insured, but the truth is that there is no way that the government of Cyprus could ever come up with enough money to cover the massive losses that we are potentially looking at. This is a case where the banking system of a nation has gotten so large that the national government is absolutely powerless to stop a collapse from happening. If those banks fail, depositors may end up getting 50 percent of their money or they may end up getting nothing. We just don’t know how bad the damage is yet. And considering the fact that many of the largest corporations and many of the wealthiest individuals in Europe have huge mountains of cash stashed in Cyprus, the fallout from a banking collapse could potentially be absolutely catastrophic.
So Cyprus needs to come up with some money from somewhere in order to keep that from happening.
Basically, there are three options at this point… Continue reading »
– Secrets and Lies of the Bailout (Rolling Stone, Jan 4, 2013):
It has been four long winters since the federal government, in the hulking, shaven-skulled, Alien Nation-esque form of then-Treasury Secretary Hank Paulson, committed $700 billion in taxpayer money to rescue Wall Street from its own chicanery and greed. To listen to the bankers and their allies in Washington tell it, you’d think the bailout was the best thing to hit the American economy since the invention of the assembly line. Not only did it prevent another Great Depression, we’ve been told, but the money has all been paid back, and the government even made a profit. No harm, no foul – right?
It was all a lie – one of the biggest and most elaborate falsehoods ever sold to the American people. We were told that the taxpayer was stepping in – only temporarily, mind you – to prop up the economy and save the world from financial catastrophe. What we actually ended up doing was the exact opposite: committing American taxpayers to permanent, blind support of an ungovernable, unregulatable, hyperconcentrated new financial system that exacerbates the greed and inequality that caused the crash, and forces Wall Street banks like Goldman Sachs and Citigroup to increase risk rather than reduce it. The result is one of those deals where one wrong decision early on blossoms into a lush nightmare of unintended consequences. We thought we were just letting a friend crash at the house for a few days; we ended up with a family of hillbillies who moved in forever, sleeping nine to a bed and building a meth lab on the front lawn.
Tags: AIG, Bailout, Bank of America, Banking, Barack Obama, Ben Bernanke, Bush administration, Citigroup, Economy, FDIC, Fed, Federal Reserve, Financial Crisis, General Motors, George Bush, Global News, GM, Goldman Sachs, Government, Great Depression, Henry Paulson, Jamie Dimon, Larry Summers, Lehman Brothers, Merrill Lynch, Neil Barofsky, Nomi Prins, Obama administration, Politics, Ponzi schemes, Sheila Bair, Society, TARP, Taxpayers, Timothy Geithner, U.S., Wachovia, Wall Street, Wells Fargo
– An Hour In The Company Of Kyle Bass (ZeroHedge, Dec 19, 2012):
Last year’s AmeriCatalyst interview with Kyle Bass provided much more color than the normal 30-second soundbites that we are subjected to when serious hedge fund managers are exposed to mainstream media. This year, Bass was the keynote speaker and in the following speech (followed by Q&A), the fund manager provides 60 minutes of eloquence on the end of the grand experiment and its consequences. From Money Printing and Central Bank Balance sheets to Japan and the psychology of the current situation – which in many cases trumps the quantitative data – the question remains, “when will this unravel” as opposed to “if?”; Bass provides his fact-based heresy against the orthodoxy of economic thought “On The Financial Nature Of Things” extending well beyond his recent note. Must watch (there’s no football or X-Factor on tonight).
Make sure to stay tuned to the last 2 minutes when Kyle succinctly sums up our society…
Tags: Banking, Barack Obama, Ben Bernanke, Bonds, Collapse, Debt, Dollar, Economy, EU, Europe, Fed, Federal Reserve, Financial Crisis, GDP, Germany, Global News, Government, Japan, Kyle Bass, Obama administration, Pension, Politics, Quantitative Easing, Retirement, Social Security, Society, U.S., War
Tags: Alan Greenspan, Banking, Barack Obama, Ben Bernanke, Bonds, Collapse, Debt, Dollar, Economy, Fannie Mae, Fed, Federal Reserve, Financial Crisis, Freddie Mac, Global News, Government, Hyperinflation, Inflation, Japan, Obama administration, Politics, Quantitative Easing, Real Estate, Society, U.S., Unemployment
“My goals in 1976 were the same as they are today: Promote peace and prosperity by a strict adherence to the principles of individual liberty.”
…”economic ignorance is common place, as the failed policies of Keynesianism are continually promoted”…
… “psychopathic totalitarians endorse government initiatives to change our world” …
Forward to 2:08:40:
Tags: AIPAC, Bailout, Barack Obama, Bonds, Collapse, Congress, Constitution, Debt, Dictatorship, Economy, Fascism, Fed, Federal Reserve, Financial Crisis, Fiscal Cliff, Freedom, Global News, Gold, Government, Israel, Law, Liberty, Mexico, Middle Class, Military, Obama administration, Politics, Quantitative Easing, Religion, Ron Paul, Society, Taxes, U.S., War
By Mike Stathis
Mike Stathis holds a Master’s of Science in biological chemistry and biophysics from the University of Pennsylvania and was formerly a National Science Foundation research fellow at U.C. Berkeley. Mike serves as the Chief Investment Strategist of AVA Investment Analytics. As the only expert who predicted the financial apocalypse in detail, Mike has been a valuable source of guidance for investors, helping them to navigate the real estate and banking crisis, as well as the resulting global economic collapse. The accuracy of his predictions has positioned him as one of America’s most insightful and creative financial experts. He is the author of America’s Healthcare Solution, The Wall Street Investment Bible, America’s Financial Apocalypse, Cashing in on the Real Estate Bubble, America’s Financial Apocalypse, and The Startup Company Bible for Entrepreneurs.
From the article:
“Washington does not want Americans to understand the real economic problems facing their nation because it’s all about maximizing corporate profits at any expense, as one would expect from a fascist government. This is specifically why profits have remained near record-highs throughout the current recession, now entering its 59th month.”
– The truth about America’s jobless rate (PressTV, Oct 30, 2012):
In many respects, much if not all of the economic gains made in the United States from the past decade have been wiped out due to Wall Street malfeasance. Looking forward, I expect America to lose at least another decade.
While some of the economic turmoil is certainly due to the biggest real estate collapse in US history, a much larger portion is the result of the weak job market which is likely to persist for a number of years.
Although the real estate market appears to have bottomed, you should not expect anything other than a very gradual rise from here. In the absence of bubble conditions, the rate of real estate appreciation generally tracks that of inflation.
The biggest lift to the real estate market would come from lasting improvements in the job market. Thus, it is important to identify the real reasons for the persistently high unemployment rate so that adequate solutions can be designed. If the factors accounting for the continued weakness in the labor market are not addressed, America stands a good chance to lose much more than a decade. Continue reading »
Tags: Barack Obama, Collapse, Dictatorship, Economy, Financial Crisis, Global News, Government, Great Depression, Mike Stathis, New World Order, Obama administration, Paul Krugman, Politics, Society, U.S., Unemployment
For your information.
Tags: Barack Obama, Bonds, Bubble, Collapse, Debt, Dollar, Economy, EU, Euro, Europe, Fed, Federal Reserve, Financial Crisis, Global News, Gold, Government, Keynesianism, Libor, Obama administration, Politics, Silver, Society, Stock Market, U.S., Unemployment
– The Financial Crisis Was Foreseeable … Thousands of Years Ago (ZeroHedge, July 20, 2012):
We’ve known for 2,500 years that prolonged war bankrupts an economy.
Tags: cds, Central Bank, Debt, Derivatives, Derivatives market, Economy, Fed, Federal Reserve, Financial Crisis, Global News, Government, Great Depression, Military, Politics, Quantitative Easing, War
YouTube Added: 28.05.2012
Tags: Alan Greenspan, Bailout, Banking, Barack Obama, Ben Bernanke, Collapse, Dollar, Fannie Mae, Fed, Federal Reserve, Financial Crisis, Freddie Mac, Global News, Government, Inflation, Obama administration, Peter Schiff, Politics, Quantitative Easing, Silver, Society, U.S.
– Theresa May: we’ll stop migrants if euro collapses (Telegraph, May 25, 2012):
In an interview in The Daily Telegraph, Theresa May says “work is ongoing” to restrict European immigration in the event of a financial collapse.
People from throughout the EU, with the exception of new member countries such as Romania and Bulgaria, are able to work anywhere in the single market.
‘Inside Job’ provides a comprehensive analysis of the global financial crisis of 2008, which at a cost over $20 trillion, caused millions of people to lose their jobs and homes in the worst recession since the Great Depression, and nearly resulted in a global financial collapse. Through exhaustive research and extensive interviews with key financial insiders, politicians, journalists, and academics, the film traces the rise of a rogue industry which has corrupted politics, regulation, and academia. It was made on location in the United States, Iceland, England, France, Singapore, and China.
Tags: Banking, Barack Obama, Bonds, Bush administration, Debt, Documentary, Economy, EU, Europe, Fed, Federal Reserve, Financial Crisis, George Bush, Global News, Government, Iceland, Inside job, Lehman Brothers, Matt Damon, Mortgage crisis, Mortgages, Obama administration, Politics, Society, U.S.
For your information.
The elitists vs. the people.
YouTube Added: 13.11.2011
For more information: Thrive
Tags: 9/11, Adolf Hitler, Agriculture, Alan Greenspan, Amy Goodman, Assassination, Banking, Big Brother, Big Pharma, Bilderberg, BIS, Canada, Cancer, Catherine Austin Fitts, CCTV, CFR, Chemtrails, CIA, Congress, Corporations, Council on Foreign Relations, David Icke, Debt, Deepak Chopra, Derivatives, Derivatives market, DHS, Dictatorship, Documentary, Dollar, ECB, Economy, Energy, Environment, EU, Europe, False flag, Fascism, Fed, Federal Reserve, FEMA, FEMA Camps, Financial Crisis, Food, Free Energy, Freedom, Freemasonry, G Edward Griffin, General Electric, Genetically Modified Organisms, Genocide, George Bush, George H. W. Bush, Global News, GMO, Gordon Brown, Government, Gulf of Tonkin, HAARP, Halliburton, Health, Henry Kissinger, Herman Van Rompuy, Homeland Security, Illuminati, IMF, infertility, Inflation, Inside job, Internet, Iraq, Jean-Claude Trichet, John Perkins, Journalism, JPMorgan, Law, Ludwig von Mises, Manhattan Project, Mexico, MI5, Microchip, Military, Money, Mortgage crisis, Mortgages, Nazi Germany, Nazis, New World Order, Nicola Tesla, Oil, Patriot Act, Pesticides, Pharmaceutical Industry, Police State, Politics, Pope Benedict XVI, Privacy, Procter & Gamble, Quantitative Easing, RFID, Rockefeller, Rothschild, Royal Rife, Saddam Hussein, Science, Seeds, Society, steril, Sterilization, Steven Greer, Surveillance, Technology, Terrorism, Terrorists, Thrive, Timothy Geithner, Trilateral Commission, U.N., UFO, Vaccination, Vaccine, Wall Street, War, War on Terror, Water, WHO, World Bank, WTC, WTO, WW II, Zionism
– The Coming Derivatives Crisis That Could Destroy The Entire Global Financial System (The Economic Collapse, Oct. 19th, 2011):
Most people have no idea that Wall Street has become a gigantic financial casino. The big Wall Street banks are making tens of billions of dollars a year in the derivatives market, and nobody in the financial community wants the party to end. The word “derivatives” sounds complicated and technical, but understanding them is really not that hard. A derivative is essentially a fancy way of saying that a bet has been made. Originally, these bets were designed to hedge risk, but today the derivatives market has mushroomed into a mountain of speculation unlike anything the world has ever seen before. Estimates of the notional value of the worldwide derivatives market go from $600 trillion all the way up to $1.5 quadrillion. Keep in mind that the GDP of the entire world is only somewhere in the neighborhood of $65 trillion. The danger to the global financial system posed by derivatives is so great that Warren Buffet once called them “financial weapons of mass destruction”. For now, the financial powers that be are trying to keep the casino rolling, but it is inevitable that at some point this entire mess is going to come crashing down. When it does, we are going to be facing a derivatives crisis that really could destroy the entire global financial system.
Most people don’t talk much about derivatives because they simply do not understand them.
Perhaps a couple of definitions would be helpful.
Quantitative easing = printing money = creating money out of thin air = increasing the money supply = inflation = hidden tax on monetary assets = theft!
Deficit spending and quantitative easing are policies designed to destroy the middle class and the poor and to benefit the elitists.
“When a country embarks on deficit financing and inflationism (Quantitative easing) you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich.”
– Ron Paul
“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. … This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”
– Alan Greenspan
“By a continuing process of inflation (Quantitative easing), governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
– John Maynard Keynes
‘The Mervy King’ ‘nuked’ the UK with quantitative easing before:
Expect more ‘fallout’ like this, because he will do it again:
And yes, the central banksters know what they are doing:
Just exchange the Fed with the BoE and ‘THE BEN BERNANK’ with ‘THE MERVY KING’ and watch this:
Got physical gold and silver?
Prepare for collapse.
This is the ‘Greatest Depression’.
– World facing worst financial crisis in history, Bank of England Governor says (Telegraph, Oct. 6, 2011):
Sir Mervyn King was speaking after the decision by the Bank’s Monetary Policy Committee to put £75billion of newly created money into the economy in a desperate effort to stave off a new credit crisis and a UK recession.
Economists said the Bank’s decision to resume its quantitative easing [QE], or asset purchase programme, showed it was increasingly fearful for the economy, and predicted more such moves ahead.
Sir Mervyn said the Bank had been driven by growing signs of a global economic disaster.
“This is the most serious financial crisis we’ve seen, at least since the 1930s, if not ever. We’re having to deal with very unusual circumstances, but to act calmly to this and to do the right thing.”
Recommended ‘extensive roundup’ here:
Finally, after trillions in fraudulent activity, trillions in bailouts, trillions in printed money, billions in political bribing and billions in bonuses, the criminal cartel members on Wall Street are beginning to get what they deserve. As the Eurozone is coming apart at the seams and as the US economy grinds to a halt, the financial elite are starting to turn on each other. The lawsuits are piling up fast. Here’s an extensive roundup:
– Obama Goes All Out For Dirty Banker Deal (Matt Taibbi, Rolling Stone, August 24, 2011):
A power play is underway in the foreclosure arena, according to the New York Times.
On the one side is Eric Schneiderman, the New York Attorney General, who is conducting his own investigation into the era of securitizations – the practice of chopping up assets like mortgages and converting them into saleable securities – that led up to the financial crisis of 2007-2008.
On the other side is the Obama administration, the banks, and all the other state attorneys general.
This second camp has cooked up a deal that would allow the banks to walk away with just a seriously discounted fine from a generation of fraud that led to millions of people losing their homes.
The idea behind this federally-guided “settlement” is to concentrate and centralize all the legal exposure accrued by this generation of grotesque banker corruption in one place, put one single price tag on it that everyone can live with, and then stuff the details into a titanium canister before shooting it into deep space.
– Joint Statement From Merkel And Sarkozy On Global Financial Crisis (ZeroHedge, Aug 7, 2011):
Below is the full text of the joint French-German statement attempting to prevent another European market collapse. Next up are comparable statements from the ECB and from theG7. We expect many more before the night is out.
Following is the full text of a joint statement issued on Sunday by German Chancellor Angela Merkel and French President Nicolas Sarkozy on measures to tackle the euro zone debt crisis.
President Sarkozy and Chancellor Merkel reiterate their commitment to fully implement the decisions taken by the heads of state and government of the euro area and the EU institutions on July 21st 2011.
In particular, they stress the importance that parliamentary approval will be obtained swiftly by the end of September in their two countries.
They welcome the recent measures announced by Italy and Spain with regard to faster fiscal consolidation and improved competitiveness. Especially the Italian authorities’ goal to achieve a balanced budget a year earlier than previously envisaged is of fundamental importance. They stress that complete and speedy implementation of the announced measures is key to restore market confidence.
As decided on July 21st, the effectiveness of the EFSF will be improved and its flexibility increased linked to appropriate conditionality, in particular through the following instruments: precautionary program, finance recapitalization of financial institutions and to intervene in secondary markets on the basis of an ECB analysis recognizing the existence of exceptional financial market circumstances and risks to financial stability and on the basis of a decision by mutual agreement of the member states, in order to avoid contagion.
– ‘US Is Nearing Even Worse Financial Crisis: Jim Rogers (CNBC, June 8 2011):
The U.S. is approaching a financial crisis worse than 2008, Jim Rogers, chief executive, Rogers Holdings, warned CNBC Wednesday.
“The debts that are in this country are skyrocketing,” he said. “In the last three years the government has spent staggering amounts of money and the Federal Reserve is taking on staggering amounts of debt.
“When the problems arise next time…what are they going to do? They can’t quadruple the debt again. They cannot print that much more money. It’s gonna be worse the next time around.”
The well-known investor believes the government won’t shut down in August if agreement isn’t reached on raising the debt ceiling, but he did say “draconian cuts” are needed in taxes and spending, especially military spending.
“We’ve got troops in 150 countries around the world. They’re not doing us any good, they’re making enemies. They’re costing us a fortune,” he said.
Rogers said he is “not long anything in the U.S.” and short on American tech stocks. He owns Chinese stocks as well as commodities and would love the world price of silver and gold to come down so he could “pick up the phone and buy more.”
– Another Crisis ‘Around The Corner’: Mobius (Bloomberg, May 30, 2011):
Mark Mobius, executive chairman of Templeton Asset Management’s emerging markets group, said another financial crisis is inevitable because the causes of the previous one haven’t been resolved.
“There is definitely going to be another financial crisis around the corner because we haven’t solved any of the things that caused the previous crisis,” Mobius said at the Foreign Correspondents’ Club of Japan in Tokyo today in response to a question about price swings. “Are the derivatives regulated? No. Are you still getting growth in derivatives? Yes.”
The total value of derivatives in the world exceeds total global gross domestic product by a factor of 10, said Mobius, who oversees more than $50 billion. With that volume of bets in different directions, volatility and equity market crises will occur, he said.
It took the brilliant minds of Goldman Sachs to realize the simple truth that nothing is more valuable than our daily bread. And where there’s value, there’s money to be made. In 1991, Goldman bankers, led by their prescient president Gary Cohn, came up with a new kind of investment product, a derivative that tracked 24 raw materials, from precious metals and energy to coffee, cocoa, cattle, corn, hogs, soy, and wheat. They weighted the investment value of each element, blended and commingled the parts into sums, then reduced what had been a complicated collection of real things into a mathematical formula that could be expressed as a single manifestation, to be known henceforth as the Goldman Sachs Commodity Index (GSCI).
Tags: Agriculture, AIG, Banking, Barclays, Bear Stearns, Commodities, Derivatives, Derivatives market, Deutsche Bank, Economy, Financial Crisis, Food, Global News, Goldman Sachs, Inflation, JP Morgan Chase, Lehman Brothers, PIMCO, Wall Street
Paul Craig Roberts was Assistant Secretary of the Treasury during President Reagan’s first term. He was Associate Editor of the Wall Street Journal. He has held numerous academic appointments, including the William E. Simon Chair, Center for Strategic and International Studies, Georgetown University, and Senior Research Fellow, Hoover Institution, Stanford University.
This essay is about three recent books that explain how we lost our economy, the Constitution and our civil liberties, and how peace lost out to war.
Matt Taibbi is the best–certainly the most entertaining–financial/political reporter in the country. There is no better book than Griftopia (2010) to which to turn to understand how stupidity, greed, and criminality, spread evenly among policymakers and Wall Street, created the financial crisis that has left Americans overburdened with both private and public debt. Taibbi walks the reader through the fraudulent financial instruments that littered the American, British, and European financial communities with toxic waste. He has figured it all out, and what in other hands might be an arcane account for MBAs is in Taibbi’s hands a highly readable and entertaining story.
For the first 65 pages Taibbi entertains the reader with the inability of the public and politicians to focus on any reality. The financial story begins on page 65 with Fed chairman Alan Greenspan undermining the Glass-Steagall Act leading to its repeal by three political stooges, Gramm-Leach-Bliley. This set the stage for the banksters to leverage debt upon debt until the house of cards collapsed. When Brooksley Born, head of the Commodity Futures Trading Commission, attempted to do her regulatory job and regulate derivatives, the Federal Reserve, Treasury, and Securities and Exchange Commission got her bounced out of office. To make certain that no other regulator could protect the financial system and its participants from what was coming, Congress deregulated the derivatives markets by passing the Commodity Futures Modernization Act.
Tags: AIG, Bailout, Banking, Barack Obama, Bonds, Bush administration, CIA, Civil liberties, Civil rights, Constitution, Dick Cheney, Dollar, Economy, Fed, Federal Reserve, Financial Crisis, George Bush, Global News, Goldman Sachs, Government, Griftopia, John F. Kennedy, Matt Taibbi, Mortgage crisis, Mortgages, Obama administration, Politics, U.S.
Only now does the Guardian report about this documentary. Just in time before the next crisis: The Greatest Depression.
– Former Governor Jesse Ventura Conspiracy Theory: Wall Street
– Former Assistant Secretary of Housing Catherine Austin Fitts: The Looting Of America
An aerial view of Wall Street, the heart of the global financial meltdown. Photograph: Cameron Davidson
When Michael Moore made his debut feature, Roger and Me, he set about vilifying the boss of General Motors, the now deceased Roger B Smith, for destroying his home town of Flint, Michigan. Charles Ferguson’s film Inside Job attempts to blame a wider cast list for the banking crash of 2008 and explains why so little has been done to reform the financial world or bring criminal prosecutions against the main protagonists.
His villainous lineup includes bankers, politicians (many of whom were previously bankers), regulators, the credit ratings agencies and academics. When Glenn Hubbard, George Bush’s chief economic adviser and dean of Columbia Business School, is shown as a partisan advocate of deregulation, we have one of the movie’s punch-the-air moments. During the interview, Hubbard, who denies he was corrupted by his paid-for relationships with government, angrily barks: “You’ve got five minutes, mister. Give it your best shot.”
The spotlight has largely bypassed academics in the UK. There are plenty of economists who believed the banks understood what they were doing and supported deregulation. Whether they took large slugs of cash for writing poorly researched, cheerleading reports on the economic miracle in Iceland (pre-crash), as former US central banker Frederic Mishkin is found doing, is less clear. Over here, the relationship between academia and business appears to be more arm’s length, though London Business School dean Sir Andrew Likierman sits on the Barclays board, while Howard Davies, who argued for light-touch regulation while head of the Financial Services Authority, has become director of the London School of Economics. The UK’s chief villian, however, is probably the disgraced, but largely unpunished, banker Sir Fred Goodwin, the former boss of Royal Bank of Scotland, once the fifth-largest bank in the world.
In Inside Job, the name that keeps cropping up is Larry Summers, a friend of President Bill Clinton and more recently Barack Obama. Summers exemplifies the links between cheerleaders in academia, Wall Street, supine regulators and an ignorant Capitol Hill that Ferguson stresses were at the root of the problem. It helps that Summers looks like a mafia boss, but the difficulties in making the case against him are shown by the need to explain financial products like credit default swaps and how securitisation was used by banks to increase their borrowing.
Washington: In many ways, the personal injury lawsuit looked routine: In late 2001, a government employee and his family sued the agency he worked for, saying it had placed them in a mold-contaminated home that made them sick and required nearly all their possessions to be destroyed.
But this was no ordinary case. The employee, Kevin M. Shipp, was a veteran Central Intelligence Agency officer. His home was at Camp Stanley, an Army weapons depot just north of San Antonio, in an area where the drinking water was polluted with toxic chemicals. The post includes a secret C.I.A. facility.
Declaring that its need to protect state secrets outweighed the Shipps’ right to a day in court, the government persuaded a judge to seal the case and order the family and their lawyers not to discuss it, and to later dismiss the lawsuit without any hearing on the merits, Mr. Shipp said.
More than half a decade later, Mr. Shipp is going public with his story. He contends that the events broke up his marriage and destroyed his career, and that C.I.A. officials abused the State Secrets Privilege doctrine in an effort to cover up their own negligence.
Tags: 9/11, Assassination, Banking, Barack Obama, Bilderberg, Bush administration, CIA, Civil liberties, Civil rights, Constitution, DHS, Dick Cheney, Dictatorship, Economy, Fascism, Financial Crisis, George Bush, Global News, Government, HAARP, Halliburton, Homeland Security, Human Rights, Jesse Ventura, John F. Kennedy, Manchurian Candidate, Obama administration, Pentagon, Plum Island, Police State, Politics, Society, Stock Market, Terrorism, Terrorists, U.S., Wall Street, Water, WTC
State after state will go bankrupt, asking the even more bankrupt federal government for a bailout.
Dozens of Michigan’s municipalities and school districts could soon face major financial problems and an unnamed handful are on the brink of becoming insolvent, warns State Treasurer Andy Dillon.
To prepare for the onslaught, the state treasurer’s office will start training 50 emergency financial managers this week to help the state cope with an expected rise in communities facing financial collapse. The training will focus on helping local governments avoid a state financial takeover while emphasizing early intervention, Bond Buyer reports.
Among some of the discoveries of the financial crisis is that the entire financial system is now, following the Lehman bankruptcy, built entirely on fraud. And while Ken Lewis may spend the remainder of his days on some private island with stolen taxpayer money providing for his every last wish, it was he, in following the Fed’s and the Treasury’s orders to make a mockery of fiduciary responsibility, that was among the first people to confirm that there is no rule of low in America, or rather whatever law there is, it only applies to the less than immortal (i.e. the sub-banker class). Below, in an indication that Zero Hedge will never forget, we present the salient highlights from the Ken Lewis deposition on the MAC clause surrounding the Merrill transition, emphasizing the threats from Hank Paulson and Ben Bernanke. For as long as neither of these three is in jail for what is documented shareholder (and taxpayer) fraud, we fail to see why the remaining 300+ million Americans continue to diligently pay their share of taxes into a government that is now beyond (and in full documentation) corrupt. Also, how BofA’s lawyer Wachtell was not at all present during the discussion of the MAC clause, makes a complete mockery of the US legal process in its entirety. We wonder just when the official scribe of the kleptocracy, Andrew R. Sorkin, will write a book disclosing the truth of what happened, including a listing of all the laws broken with full premeditation by every single player, and not the watered down, PG13 (and rather expensive)version that makes everyone come out like a law-abiding superman.
Full transcript highlights, presented without commentary: Continue reading »
Tags: Bailout, Bank of America, Banking, Bankruptcy, Ben Bernanke, Bush administration, Economy, Fed, Federal Reserve, Financial Crisis, Fraud, Global News, Government, Henry Paulson, Law, Lehman Brothers, Merrill Lynch, Politics, U.S., Wall Street
Make no mistake, the financial crisis has only just begun.
This is The Greatest Depression.
A friend sent me a collage of quotes from former Treasury Secretary Henry Paulson’s memoir of the financial crisis, On the Brink. The quotes are particularly relevant in view of the Financial Crisis Inquiry Commission’s newly issued report which concludes that the 2008 financial crisis was badly mishandled by the government.
The collage paints a stunning picture of a confused and panicked government without a coherent strategy for getting in front of and containing the crisis. Judge for yourself:
“I misread the cause, and the scale, of the coming disaster. Notably absent from my presentation was any mention of problems in housing or mortgages.” (p. 47)
“All of this led me in late April 2007 to say . . . that subprime mortgage problems were ‘largely contained.’ I repeated that line of thinking publicly for another couple of months. . . . We were just plain wrong.” (p. 66)
“Lehman’s UK bankruptcy administrator, PricewaterhouseCoopers, had frozen [Lehman’s] assets in the UK . . . a completely unexpected . . . jolt.” (p. 230)
“General Electric . . . was having problems selling commercial paper. This stunned me.” (p. 172)
“I’d never expected to hear those troubles spreading like this to the corporate world. . . .” (p. 227)
“In a celebratory mood, [Rep.] Pelosi, [Sen.] Reid, [Sen.] Dodd, [Rep.] Frank, [Sen.] Schumer, and I walked together to Statuary Hall to announce the [TARP] deal. . . . Perhaps I should have foreseen the problems ahead . . . .” (p. 314)
“I expected [TARP] to be politically unpopular, but the intensity of the backlash astonished me.” (p. 370)
“I began to seriously doubt that our asset-buying program [TARP] could work. This pained me, as I had sincerely promoted the [toxic asset] purchases to Congress and the public. . . .” (p. 385)
“It was intentional then. It went this far to further the war on terror, to get body scanners in the airports, to increase the TSA’s budget, to renew the Patriot Act and whatever other reasons you wanna list.”
– Lawyer Kurt Haskell
Added: 26. Januar 2011
I contend that this story is just the tip of the iceberg into the US government’s black operations to further the Patriot Act, funding for Homeland Security and the TSA, and to keep intensity up for the so called War on Terror.
Respected lawyer and community leader, Kurt Haskell, has nothing to gain from pointing his finger at the federal government.
He witnessed the underwear bomber, Umar Farouk Abdulmutallab, being whisked past security and led onto NorthWest Airlines flight 253, by a well-dressed man with an American accent- all without the passenger’s proper visa and passport documentation.
What the news piece doesn’t mention is that the State Dept did indeed put Mutallab on the plane, at the behest of “an unnamed US intelligence agency.”
Undersecretary Patrick F. Kennedy (Detroit news article was removed from web!).
THIS is why we are being groped, molested, and body scanned at the airport by the TSA! Because the government claims the underwear bomber is a real threat! Stand up America- the politicians say our rhetoric is dangerous. Maybe the government itself is terribly dangerous….
28/01/2011 – 13:34 by cybe
The US government is Al-Qaeda or better Al-CIAda:
“The truth is, there is no Islamic army or terrorist group called Al Qaeda. And any informed intelligence officer knows this. But there is a propaganda campaign to make the public believe in the presence of an identified entity representing the ‘devil’ only in order to drive the TV watcher to accept a unified international leadership for a war against terrorism. The country behind this propaganda is the US.”
– Robin Cook, Former British Foreign Secretary