Financial Crisis

[samuibeachcomber]

I called the bank on April 2, to check on a deposit. They offered me a credit card. As of yesterday, I already have $7,000 more credit and the card is in the mail. What credit crunch? OTOH, the General, that former behemoth of world capitalism that dominated the auto industry for almost a century, is down to about $2 a share and GM cannot borrow seven dollars.

@ what interest rate were you offered?

I have a small pile of gold & plat cards with 20k+ limits & afaik the interest is still quite low.

I do not use them. They just are sent to me on a regular basis.

As for the GM guys makes you wonder a bit though? I mean the folks who cause the probs need only say we need & they get.

These auto guys beg & beg & go to meetings & get harrased about how they arrived at said meetings & still .....................................................DENIED !!

The amounts they ask are tiny in comparison & they do in fact employ actual people

Makes me wonder quite a bit. Not that I believe any company or bank should be bailed but why some

( usually the bad ones ) & not the others? Is this union busting or?

Just curious as I have no horse in this race

I ask the same question.they are happy to bail out their mates that caused this debacle,yet are happy to hit an industry that employs thousands of "your average citizen".........time to take to the streets.maybe that's what they want.............who knows,and quite honestly i dont care.I would be very happy to see the complete demise of the USA and the UK.

Cor blimey, mate! That's a bit strong ain't it? Where would you be without the UK and USA? Still living life like a peasant is the answer. Mind you, perhaps you still are as it sounds like you are sadly lacking in sound judgement - hope you make it through songkran.

yes it was a bit strong,apologies.I was really thinking of the rampant corruption that has been exposed in both countries vis a vis the politicians/financial sector etc.I was not referring to the majority of law abiding/hard working people who are the victims of this fraud.

[AlexLah]

I don't want to hear it!

[BEENTHEREDONETHAT]

I don't want to hear it!

Another Pattaya jumper.

[quiksilva]

The BBC asks so who is to blame for this crisis, Obama responds......

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Nick Robinson: "A question for you both, if I may. The prime minister has repeatedly blamed the United States of America for causing this crisis. France and Germany both blame Britain and America for causing this crisis. Who is right? And isn't the debate about that at the heart of the debate about what to do now?" Brown immediately swivels to leave Obama in pole position. There is a four-second delay before Obama starts speaking [THANKS FOR NOTHING, GORDY BABY. REMIND ME TO HANG YOU OUT TO DRY ONE DAY.] Barack Obama: "I, I, would say that, er ... pause ... if you look at ... pause [WHO IS THIS NICK ROBINSON JERK?] ... the, the sources of this crisis ... pause [JUST KEEP GOING, BUDDY] ... the United States certainly has some accounting to do with respect to . . . pause [i'M IN WAY TOO DEEP HERE] ... a regulatory system that was inadequate to the massive changes that have taken place in the global financial system ... pause, close eyes [THIS IS GOING TO GO DOWN LIKE A CROCK OF SHIT BACK HOME. HELP]. I think what is also true is that ... pause ... here in Great Britain ... pause [sHIT, GORDY'S THE HOST, DON'T LAND HIM IN IT] ... here in continental Europe ... pause [dam_n IT, BLAME EVERYONE.] ... around the world. We were seeing the same mismatch between the regulatory regimes that were in place and er ... pause [i'VE LOST MY TRAIN OF THOUGHT AGAIN] ... the highly integrated, er, global capital markets that have emerged ... pause [i'M REALLY WINGING IT NOW]. So at this point, I'm less interested in ... pause [YOU] ... identifying blame than fixing the problem. I think we've taken some very aggressive steps in the United States to do so, not just responding to the immediate crisis, ensuring banks are adequately capitalised, er, dealing with the enormous, er ... pause [WHY DIDN'T I QUIT WHILE I WAS AHEAD?] ... drop-off in demand and contraction that has taken place. More importantly, for the long term, making sure that we've got a set of, er, er, regulations that are up to the task, er, and that includes, er, a number that will be discussed at this summit. I think there's a lot of convergence between all the parties involved about the need, for example, to focus not on the legal form that a particular financial product takes or the institution it emerges from, but rather what's the risk involved, what's the function of this product and how do we regulate that adequately, much more effective coordination, er, between countries so we can, er, anticipate the risks that are involved there. Dealing with the, er, problem of derivatives markets, making sure we have set up systems, er, that can reduce some of the risks there. So, I actually think ... pause [FANTASTIC. I'VE LOST EVERYONE, INCLUDING MYSELF] ... there's enormous consensus that has emerged in terms of what we need to do now and, er ... pause [i'M OUTTA HERE. TIME FOR THE USUAL CLOSING <deleted>] ... I'm a great believer in looking forwards than looking backwards.

Full text over at:--- http://www.guardian.co.uk/world/2009/apr/0...binson-question

Edited April 9, 2009 by quiksilva

[12DrinkMore]

An unforeseen (at least to me) effect of globalisation and the devaluation of the GBP.

In my stupidity I thought that after that <deleted> Brown devalued the GBP, produce grown and sold in the UK would stay at more or less the previous price. But hey no! The producers are able to sell the produce at world prices abroad, so up goes the price at home too! I bet Brown did not think that one through either.

http://www.independent.co.uk/life-style/fo...ds-1666124.html

The BRC said: "Although around 60 per cent of food consumed in the UK is sourced domestically, the grocery industry is a global market place and hence exchange rate fluctuations affect the price of produce and production. The farm gate price of UK-produced foodstuffs has increased markedly as sterling has depreciated, to maintain parity in the price of similar goods sourced in other currencies in the global market place."

So at least some people are doing OK, the farmers. And I can't blame them either. Why should they subsidise Brown, his policies and his cronies?

The British Retail Consortium (BRC), which represents most major shop chains, reported yesterday a 9 per cent rise in the price of food in the shops in the year to March, against a fall in the prices of non-food items of 1.5 per cent. Prices were up 0.4 per cent month-on-month. Despite a general fall in inflation – the annual rise in the Retail Prices Index (RPI) hit zero last month – food prices remain stubbornly high, and rising.

These indices are becoming a joke, or indeed, have been a joke for years.

[lannarebirth]

The BBC asks so who is to blame for this crisis, Obama responds......

----------

-----------

Nick Robinson: "A question for you both, if I may. The prime minister has repeatedly blamed the United States of America for causing this crisis. France and Germany both blame Britain and America for causing this crisis. Who is right? And isn't the debate about that at the heart of the debate about what to do now?" Brown immediately swivels to leave Obama in pole position. There is a four-second delay before Obama starts speaking [THANKS FOR NOTHING, GORDY BABY. REMIND ME TO HANG YOU OUT TO DRY ONE DAY.] Barack Obama: "I, I, would say that, er ... pause ... if you look at ... pause [WHO IS THIS NICK ROBINSON JERK?] ... the, the sources of this crisis ... pause [JUST KEEP GOING, BUDDY] ... the United States certainly has some accounting to do with respect to . . . pause [i'M IN WAY TOO DEEP HERE] ... a regulatory system that was inadequate to the massive changes that have taken place in the global financial system ... pause, close eyes [THIS IS GOING TO GO DOWN LIKE A CROCK OF SHIT BACK HOME. HELP]. I think what is also true is that ... pause ... here in Great Britain ... pause [sHIT, GORDY'S THE HOST, DON'T LAND HIM IN IT] ... here in continental Europe ... pause [dam_n IT, BLAME EVERYONE.] ... around the world. We were seeing the same mismatch between the regulatory regimes that were in place and er ... pause [i'VE LOST MY TRAIN OF THOUGHT AGAIN] ... the highly integrated, er, global capital markets that have emerged ... pause [i'M REALLY WINGING IT NOW]. So at this point, I'm less interested in ... pause [YOU] ... identifying blame than fixing the problem. I think we've taken some very aggressive steps in the United States to do so, not just responding to the immediate crisis, ensuring banks are adequately capitalised, er, dealing with the enormous, er ... pause [WHY DIDN'T I QUIT WHILE I WAS AHEAD?] ... drop-off in demand and contraction that has taken place. More importantly, for the long term, making sure that we've got a set of, er, er, regulations that are up to the task, er, and that includes, er, a number that will be discussed at this summit. I think there's a lot of convergence between all the parties involved about the need, for example, to focus not on the legal form that a particular financial product takes or the institution it emerges from, but rather what's the risk involved, what's the function of this product and how do we regulate that adequately, much more effective coordination, er, between countries so we can, er, anticipate the risks that are involved there. Dealing with the, er, problem of derivatives markets, making sure we have set up systems, er, that can reduce some of the risks there. So, I actually think ... pause [FANTASTIC. I'VE LOST EVERYONE, INCLUDING MYSELF] ... there's enormous consensus that has emerged in terms of what we need to do now and, er ... pause [i'M OUTTA HERE. TIME FOR THE USUAL CLOSING <deleted>] ... I'm a great believer in looking forwards than looking backwards.

Full text over at:--- http://www.guardian.co.uk/world/2009/apr/0...binson-question

Actually, I thought that was a pretty good response by Obama. While I don't necessarly agree with his and his handlers approach to rectifying this crisis, I do believe, that he at least, is being forthright thusfar. However, there comes a time for all leaders who would be great, to tell the people that got them there to go to hel_l.

[flying]

However, there comes a time for all leaders who would be great, to tell the people that got them there to go to hel_l.

Then put their head down between their knees & kiss their goodbye.

Dont gt me wrong I agree 100% in spirit. But it just seems the few that did expire.

[midas]

So where are all the TV posters( such as Siamamerican and Vegas Vic ) from the past who accused me of being

anti-American ( which I am not ) from commenting on America's growing weakness? Now this has never

happened right across the board before in USA ..................

Moody’s Investors Service assigned a negative outlook to the creditworthiness of all local governments in the United States, the agency said Tuesday, the first time it had ever issued such a blanket report on municipalities.

The report signaled how severely the economic downturn was affecting towns, counties and school districts across the nation.

While Moody’s regularly reports on the financial strength of various sectors of private industry, its analysts have in the past considered America’s tens of thousands of towns and local authorities too diverse for generalizations.

The report suggests that the ratings of many governments could be downgraded in the coming months, something that would make it more expensive for them to borrow money to finance their operations.

In the most extreme cases, municipalities might default on some of their obligations, as Jefferson County, Ala., has been threatening to do for a number of months.

http://www.nytimes.com/2009/04/08/business...omy/08muni.html

[AlexLah]

No news this week, we are left in the dark.

[12DrinkMore]

No news this week, we are left in the dark.

And that's where they want to keep us

http://www.bloomberg.com/apps/news?pid=206...id=aEX9sBcofMYY

April 10 (Bloomberg) -- The U.S. Federal Reserve has told Goldman Sachs Group Inc., Citigroup Inc. and other banks to keep mum on the results of “stress tests” that will gauge their ability to weather the recession, people familiar with the matter said.

But maybe another dot to join, or maybe not

Regulators are using the tests to determine whether the 19 biggest banks have enough capital to cover loan losses during the next two years if the economy shrinks, unemployment surges and housing prices keep declining.

And I thought that Our Leaders are telling us that the crisis will be over in a few months.

And here, for the first time, there is a mention that we could be heading for....

Thanks to dysfunctional banks and the trade deficit, the US economy has entered a depression that compares with the 19th century "long depression." From October 1876 through June 1897, the US economy contracted in 161 of 285 months. Unemployment peaked at more than 14% in 1876 and 18.4% in 1894.

Then, as now, bank failures and the dollar were central concerns. Either we fix the banks and exchange rates, or we can look forward to a similar experience.

http://www.atimes.com/atimes/Global_Economy/KD10Dj02.html

We could be in for a very long haul.

Edited April 10, 2009 by 12DrinkMore

[Naam]

No news this week, we are left in the dark.

no pictures Alex to support your claim?

[ronz28]

Another irresponsible action by a credit rating agency doesn't make a right. First they say the most unsafe financial instruments were triple A rated and now they are saying that all of the safest investments there are have been issued by entities that aren't credit worthy. It doesn't make sense to lump all municipalities into the same bucket as the dummies from Alabama that maintained far more notional value in swaps than were covered by variable rate bonds thus leaving themselves exposed to changes in interest rates. Most governments have bond counsels, financial advisers, financial statement auditors, bond review boards, attorney general office review and independent swap advisers reviews that would blow the whistle if the government financial manager would make such uncovered/unhedged muti-billion dollar derivative interest rate gambles as that Alabama county did. I don't know what caused that breakdown but I don't believe such gambling is typical. It makes no sense to say all municipalities have similar problems and should be put on credit watch. Credit rating agencies should do what they are paid for and name and shame with low credit and bond ratings those entities that are financially irresponsible.

[churchill]

Budget deficit triples to $957 billion for year

http://www.marketwatch.com/news/story/budg...&dist=msr_2

[AlexLah]

Ok Ok Ok, it is all over!!!!!!!

We can have a nice sleap again without thinking too much on how to protect our assets.

http://www.time.com/time/business/article/...1890560,00.html

[samuibeachcomber]

whisperings from across the atlantic to 10 downing street,everythings beginning to look ok.

An old adage..."believe nothing of what you hear and only half of what you see" how can anyone believe these guys.

[AlexLah]

Hmmmmm.......might be a similair tactic used when torturing. First inflict unbearable pain and suffering, then comfort the suspect and tell it's over and he/she will soon be free. Followed by a a swift action whereby a toothpick is forced under the nail and poked around.

Very effective.

[12DrinkMore]

whisperings from across the atlantic to 10 downing street,everythings beginning to look ok.

An old adage..."believe nothing of what you hear and only half of what you see" how can anyone believe these guys.

Yes, it has all gone a bit quiet. I suppose the press gets bored of publishing x,000 more jobless and so moves on to other topics like the UK police force mess, or football. Banks crashing and going insolvent almost everyday and trillions in bailouts made headlines, but it has all happened.

So what next?

As I haven't seen anything being done to sort out the massive underlying problems, I suppose they will continue to fester away, house prices continue the slow fall to sustainable levels, unemployment creeps up to 3,000,000, the huge civil service gets even bigger, the pension crisis will be swept under the carpet for as long as possible, Darling will continue to print a few Billion crispy new Quids every week. Commercial property will fall in price. Inflation will slowly ramp up. The next event on the financial calendar is Darling's mega deficit budget coming out soon.

Maybe Japan offers us a glimpse into the future?

http://www.bloomberg.com/apps/news?pid=206...&refer=home

Economist at Credit Suisse Group AG in Tokyo. “The package doesn’t do anything to promote a sustainable economic recovery.”

The plan does little to address the nation’s liabilities, give its aging citizens confidence in their pension system, or encourage them to spend some of their 1,400 trillion yen in financial assets, according to Kirby Daley, senior strategist at Newedge Group in Hong Kong.

“The fiscal situation of the government is deteriorating faster than anyone imagined,” Daley said in an interview with Bloomberg Television. The government needs to address its debt “so the Japanese consumer feels comfortable that their pension system is viable. They will then start to unlock those savings,” he said.

At least they still have savings, unlike the UK.

Japan’s older generation is reluctant to spend after the government revealed two years ago that it had lost pension records for 50 million people, or more than a third of the entire population. Younger people are growing concerned that the system will have run out of money by the time they retire.

Retirement Worry

A record 84 percent of Japanese are worried about retiring because they say they lack savings, an annual Bank of Japan survey showed in October.

“What households and the elderly need to see in order for them to start spending money is evidence that they don’t have to worry about retirement,” said Shirakawa at Credit Suisse. “The government isn’t providing any relief or convincing plans for the future. It’s all cheap talk by politicians.”

I think that last sentence is so poignant that is deserves to be repeated.

“The government isn’t providing any relief or convincing plans for the future. It’s all cheap talk by politicians.”

Applies to those idiots Brown and Darling. But their talk isn't cheap, it is costing the UK trillions.

[samuibeachcomber]

They cant stand the thought that the days of mega booms are over.when will they get into their thick heads that no one trusts govts. anymore.

Japan,USA,UK will end up with a much reduced lifestyle and i suppose China will take up the mantle of uno numero.What will the world be like with China calling the tune.

Already no one is listening to washington,they wont like playing second fiddle.

[12DrinkMore]

They cant stand the thought that the days of mega booms are over.when will they get into their thick heads that no one trusts govts. anymore.

Japan,USA,UK will end up with a much reduced lifestyle and i suppose China will take up the mantle of uno numero.What will the world be like with China calling the tune.

Already no one is listening to washington,they wont like playing second fiddle.

http://www.bloomberg.com/apps/news?pid=206...&refer=home

“China is unusual in that it has this incredible capacity to mobilize all its institutions -- central government, local governments and the entire banking system -- to boost government-influenced investments,” said Vikram Nehru, the World Bank’s Washington-based chief Asia economist.

Although there are a few problems, on the whole I believe that China and Asia will weather this crisis far better than the Western countries and that the balance of power, and standard of living will swing towards Asia. Not in the next two years, but over the next decade.

[samuibeachcomber]

several reports in the aussie papers are already linking chinese infriltration into the governing labour party.they'd love to get their hands on the raw materials and may well do with all the spare cash they've got.

The yanks and the brits have got their just desserts for the unbridled greed they persued,the chinese on the other hand are too shrewed by half.

Now thailand are continuing on a course of playing "silly buggers"..........maybe its time to have an exit strategy after all.not wanting to leave asia might look at vietnam.

[vedantafx]

They cant stand the thought that the days of mega booms are over.when will they get into their thick heads that no one trusts govts. anymore.

Japan,USA,UK will end up with a much reduced lifestyle and i suppose China will take up the mantle of uno numero.What will the world be like with China calling the tune.

Already no one is listening to washington,they wont like playing second fiddle.

"China is unusual in that it has this incredible capacity to mobilize all its institutions -- central government, local governments and the entire banking system -- to boost government-influenced investments," said Vikram Nehru, the World Bank's Washington-based chief Asia economist.

Although there are a few problems, on the whole I believe that China and Asia will weather this crisis far better than the Western countries and that the balance of power, and standard of living will swing towards Asia. Not in the next two years, but over the next decade.

I pretty much agree with everything you have said in those last few posts. Inflation will become a problem again in the worldwide and the UK. What the government are doing with this keynesian sillyness is disastrous for the economy, it will only make the crisis worse and more prolonged.

[flying]

Now thailand are continuing on a course of playing "silly buggers"..........maybe its time to have an exit strategy after all.not wanting to leave asia might look at vietnam.

Sad but true.

Edited April 12, 2009 by flying

[stumonster]

Goldman Sachs attempts to shut down a website that is extremely critical of the company - and the streisand effect takes over

these b^wanke_rs think they are spethial

http://www.goldmansachs666.com/2009/04/gol...ike-morgan.html

It looks like Goldman Sachs is not happy with this website I created to post information about Goldman Sachs. I received the letter below from their attorney today, and my Intellectual will publish the truth. Feel free to visit the blog and leave your comments. You may also submit posts through the blog or our blog email address

Property attorney will be responding accordingly. It's only been up about a week, and there is not much on there yet, but I invite everyone to submit articles and posts to the website relevant to Goldman Sachs. All posts will be reviewed, but unless they are clearly false or malicious, we

Needless to say, we will most likely fight this one in court with Goldman Sachs and now we will expedite adding relevant content to this website. We have followed all of the legal requirements to own and maintain the website under the address we have selected. If you have any media contact you want to forward this to, be my guest. It's just another example of how a bully like Goldman Sachs tries to throw their weight around and this is a clear violation of our Constitutional Rights.

[AlexLah]

Test

[12DrinkMore]

Test

:D

Well done! You obviously survived the system.

"Hilliker, leave them kids alone. You're just another prick in the wall".

:D

[AlexLah]

Not much happening?

Have some patience..........................

(Yes Naam I know you like them big, maybe next time).

[samuibeachcomber]

everyone's got side tracked and gone to watch the pantomine in bangkok.But if you keep posting pics like the last one,could see a return.

Edited April 13, 2009 by samuibeachcomber

[AlexLah]

Good news!

http://www.dailypaul.com/node/89399

[12DrinkMore]

Good news!

http://www.dailypaul.com/node/89399

Great! So the banking crisis is over. The rich feckers who caused it remain rich, and carry on in their old positions. And doubtless they will resist strongly any attempt to regulate them. "Sorry sir, we did not mean it, but please do not punish us, we promise to behave well in the future". Yeah, once a bad bad, always a bad boy.

But the economic crisis is still raging on. Although we have a lull in bad news from the banks, the private industry is loosing jobs daily, no sign of any improvement except from Darling, who now reckons that the"third quarter" will show it bottoming out.

And, of course, all the bills for the bailouts will be landing on the diminishing number of tax payers. Wonder what Our Darling will have in the budget in the ten days time?

[teletiger]

Talk of bottoming out.....one of your gazelles Alex?

Regards.