Financial Crisis

[AlexLah]

Uuuurgh,

The whole exercise is to pay more interest.

More money is going to be squeezed out of the peasants.

[12DrinkMore]

and of course much of municipal France & Germany ( www.bloomberg.com/apps/news?pid=20601109&sid=a30KHZKX1WJo )

Another example of "Never give a sucker an even break", GS, the deutsche Bank etc., send in the high powered salesmen and con the gullible into signing their own death warrants. Did these salesmen know about the huge risks? Very probably yes. Did they take trouble to make it clear to the poor sods signing the contract? Absolutely not.

Bankers are worse than used car salesmen and should be handled as such.

[12DrinkMore]

Cop this - http://www.wimp.com/budgetcuts

Aah, the BIG number con.

Cutting 100,000,000 from the budget? This is mere personal banking bonus territory.

We're, or rather Obamah, is talking about saving 30 cents for every Yank, Mexican, or illegal immigrant in the States for one day. What a joke. Instead of looking for cuts he should just print off the dam_n USDs and have done with it. Eliminate the deficit in one go. Pay back the Chinese debt with new USDs. Stop all this borrowing from foreign countries. Stop issuing interest bearing bonds and print enough USDs to cover the deficits.

So what would happen?

A run on the USD? No, I don't think so. It is the world's reserve currency. Instead of interest bearing government bonds China would have non interest bearing USD's. They could spend the lot buying up the sub-prime properties on the cheap and move a few hundred million Chinese across to occupy them.

The solution to all this mess has to be outside of the box the bankers have put us into. If we take an example from

http://www.bloomberg.com/apps/news?pid=206...id=a30KHZKX1WJo

April 15 (Bloomberg) -- The worst global financial crisis in 70 years arrived in Saint-Etienne this month, as embedded financial obligations began to blow up.

A bill came due for 1.18 million euros ($1.61 million) owed to Deutsche Bank AG under a contract that initially saved the French city money. The 800-year-old town refused to pay, dodging for now one of 10 derivatives so speculative no bank will buy them back, said Cedric Grail, the municipal finance director. They would cost about 100 million euros to cancel today, he said.

So who would lose out if this contract was cancelled by the government or whatever power that could do it?

Well, then DBAG would lose future profits but not affect their current P&L account, but Saint-Etienne, a city with real people working to make a living would be able to spend the money on the local economy and not spend the next 20 years bolstering the profits and bonuses of the dam_n DBAG, which obviously and remorselessly intends to painfully extract and concentrate the profits of the combined labour of Saint-Etienne into the hands of a fuc_king bank.

[AlexLah]

Dear 12,when are you going to realize that it is all about creating more debt so the peasants will be squeezed out of money to pay the interest created by those huge loans.

[flying]

Cop this - http://www.wimp.com/budgetcuts

Very good & very true....Most have problems visualizing large amounts....

Maybe you have seen this already?

[flying]

Sobering thoughts in just one page – imagine the effect of the entire book.

Yes lots of depressed folks as they disseminate the info of the past few years & what lies ahead.

The solution to all this mess has to be outside of the box the bankers have put us into.

You are correct IMO...Not only correct but it is the only answer that will have any affect.

I have heard folks say take 12 of the worlds richest folks...

Take away their wealth & in a short time they will again be the 12 richest folks in the world.

Well perhaps they will actually get to test that theory in our lifetime.

Then again maybe the 12 have already started to prep for that?

[Gambles]

Dear 12,when are you going to realize that it is all about creating more debt so the peasants will be squeezed out of money to pay the interest created by those huge loans.

Not so much the interest as the depreciation of the currency

Even Fed meeting notes show this

[Gambles]

and of course much of municipal France & Germany ( www.bloomberg.com/apps/news?pid=20601109&sid=a30KHZKX1WJo )

Another example of "Never give a sucker an even break", GS, the deutsche Bank etc., send in the high powered salesmen and con the gullible into signing their own death warrants. Did these salesmen know about the huge risks? Very probably yes. Did they take trouble to make it clear to the poor sods signing the contract? Absolutely not.

Bankers are worse than used car salesmen and should be handled as such.

In the UK in the 17th century there a parliamentary motion was mooted to authorise throiwng venal bankers into the Thames in sacks with snakes

However it was decided that this was too extreme

After all what had the snakes done wrong ?

[Gambles]

Cop this - http://www.wimp.com/budgetcuts

Very good & very true....Most have problems visualizing large amounts....

Maybe you have seen this already?

Hadn't seen this version - love it!

[hhgz]

Bush43 spent 3 times that in Iraq.

[flying]

Bush43 spent 3 times that in Iraq.

Yeah truly a waste...Just like Vietnam & now Afghanistan,,,Politicians Whats your point?

[churchill]

Politicians vs Markets

Guess who's going to win /

EU to Set Up Fund to Prevent Spread of Greek Crisis

European leaders agreed to set up an emergency fund to halt the spread of Greece’s fiscal woes, seeking to prevent a sovereign debt crisis from shattering confidence in the 11-year-old euro.

Jolted into action by the sliding currency and soaring bond yields in Portugal and Spain, leaders of the 16 euro countries said the workings of the financial backstop will be hammered out before the markets open on May 10.

“We will defend the euro, whatever it takes,” European Commission President Jose Barroso told reporters early today after the leaders met in Brussels

http://www.bloomberg.com/apps/news?pid=206...K3AQI&pos=1

[churchill]

The Mother of All Bubbles

Huge National Debts Could Push Euro Zone into Bankruptcy

http://www.spiegel.de/international/europe...,692666,00.html

[churchill]

Stock Market Crash Biggest Stock Market Crash Dow Jones History

[beginner]

Stock Market Crash Biggest Stock Market Crash Dow Jones History

Thanks for posting that link Churchill.

Its hilariously funny. I'm not sure the commentator intended to be funny but there you are. More fun than WWF. (theatrical wrestling entertainment).

[manarak]

now holding only CHF, AUD and CAD.

Unfortunately it is the policy of the Swiss National Bank to not let the CHF get out of line with the EUR. And presumably, being the sole issuer of CHF, they are in the position of selling CHF against the EUR for some time to come.

The EC will have to pay for 20 years.

They can't let Greece go bankrupt or go out of the EURO, because either way, the EURO countries are holding a big bunch of Greek debt in EURO (and Portuguese debt and Spanish debt...).

So there is no other choice than to subsidize southern Europe.

All EURO countries are already heavily indebted, and will have to raise taxes.

And they didn't even begin to take action on the pension and healthcare problems that will come in the next 25 years, starting 2013.

Greek deficit alone is 50 Billion EUR a year, add Portugal and Spain, add pensions (another 50 Billion per year and per country) and add healthcare (mainly geriatric care), that's another 30 Billion...

Some bankers spoke about 600 billion EUR that are needed, I believe they are still way off base. We are looking at a minimum of 300 Billion PER YEAR...

For Germany, the smartest thing would indeed be to reintroduce the Deutsche Mark.

Even that will not work anymore. The banks and Euro-politicians have ensured that the whole system is so interlinked that it would be easier to reconstruct a scrambled egg and make it hatch. If the Germans reintroduced the DM it would immediately appreciate against the EUR. The debt owed to the German banks would still be in the devaluing EUR, I doubt whether they could contractually convert to DM and demand repayment in DM, which would hurt the southern Euro-Winos even more and start a flurry of defaults.

It is now one hel_l of a tangled web that has been woven.

Well, the existing debt would be kept as is, and if the debts can be paid, then they will at least a get some part back, while creating at the same time their own stable currency.

If the newly created Deutsche Mark (NDM = Neue Deutsche Mark) started to appreciate, the Bundesbank could just just put the rates to near zero, and Germany would be funded at no cost, which is exactly what they need to make the German economy work.

[midas]

Naam

Presumably you are following this below. This is in todays Times

but i just heard a snippet on BBC that the German constitutional court

has already rejected it ?

Another twist to this saga

A group of eurosceptic professors have lodged a lawsuit with Germany’s constitutional court in an attempt to stop Berlin’s aid package for Greece.

“Financial aid is not provided for in the EU treaties and gives rise to inflationary policy,” said the four academics who backed an ultimately unsuccessful constitutional challenge to the Maastricht treaty and the adoption of the euro in 1998.

http://www.timesonline.co.uk/tol/news/worl...icle7119591.ece

Edited May 8, 2010 by midas

[Naam]

the lawsuit objecting the bail-out was rejected by the constitutional court.

[Naam]

Autor: erap

Datum: 08.05.2010, 13:54

Bank Risk Soars to Record, Default Swaps Overtake Lehman Crisis

By Abigail Moses

May 7 (Bloomberg) -- The cost of insuring against losses on European bank bonds soared to a record, surpassing levels triggered by the collapse of Lehman Brothers Holdings Inc., as the sovereign debt crisis deepened.

The Markit iTraxx Financial Index of credit-default swaps on 25 banks and insurers soared as much as 40 basis points to 223, according to JPMorgan Chase & Co. The index closed at 212 basis points March 9, 2009. Swaps on Greece, Portugal, Spain and Italy rose to or near all-time high levels.

Credit risk rose for a sixth day on concern the Greek debt crisis is spiraling out of control and triggering concern banks may face losses on their sovereign bond holdings. The Group of Seven plans to hold a conference call today to discuss the turmoil, after a global stock rout that briefly erased more than $1 trillion in U.S. market value.

“Financials are caught in a really bad place right now,” said Aziz Sunderji, a London-based credit strategist at Barclays Capital. “Investors are selling bonds, not just hedging with CDS. It shows investors are repositioning portfolios and there’s a more long-term repricing of peripheral risk.”

Pacific Investment Management Co.’s Mohamed El-Erian and Loomis Sayles & Co.’s Dan Fuss said Europe’s crisis may spread across the globe because of investor concern that governments have borrowed too much to revive their economies.

Portugal, Spain

Markit’s financial gauge was trading at 198 basis points at 2:30 p.m. in London, according to JPMorgan. Contracts on Spanish and Portuguese banks rose to records, according to CMA DataVision prices. Portugal’s Banco Comercial Portugues SA increased 53 basis points to 579 and Spain’s Banco Santander SA rose 12 basis points to 253.

In the U.K., swaps on Royal Bank of Scotland Group Plc jumped 41 to 229 after Britain’s biggest government-owned bank posted the only first-quarter loss among British rivals.

The spread between the three-month dollar London interbank offered rate and the overnight indexed swap rate, a barometer of the reluctance of banks to lend that’s known as the Libor-OIS spread, is at 18 basis points, up from 6 basis points on March 15 and near the highest level in more than five months. It’s still far from the record 364 basis points in October 2008, almost a month after Lehman’s bankruptcy.

Swaps on Greece surged 75 basis points to 1,008 before the advance was pared to 950. Portugal climbed 42 to 502 before falling to 430 and Italy rose 24 to 255.5 before dropping to 227 and Spain increased 14 to 288 before trading at 246, CMA prices show.

[midas]

Pacific Investment Management Co.’s Mohamed El-Erian and Loomis Sayles & Co.’s Dan Fuss said Europe’s crisis may spread across the globe because of investor concern that governments have borrowed too much to revive their economies.

Portugal, Spain

Markit’s financial gauge was trading at 198 basis points at 2:30 p.m. in London, according to JPMorgan. Contracts on Spanish and Portuguese banks rose to records, according to CMA DataVision prices. Portugal’s Banco Comercial Portugues SA increased 53 basis points to 579 and Spain’s Banco Santander SA rose 12 basis points to 253.

Swaps on Greece surged 75 basis points to 1,008 before the advance was pared to 950. Portugal climbed 42 to 502 before falling to 430 and Italy rose 24 to 255.5 before dropping to 227 and Spain increased 14 to 288 before trading at 246, CMA prices show.

Now i see why they say Portugal is next :-

" In fact, the Portuguese economy has been stagnating for the last 10 years. It grew substantially before that, after the country had joined the EU. In the years since the introduction of the euro, the Portuguese have gotten used to low interest rates and have "lived completely beyond their means," as President Aníbal Cavaco Silva, an economics professor himself who was also prime minister during the boom years, warned last year. "We spend 10 percent of GDP more than we take in, year after year," says Portuguese economist António Perez Metelo.

Private households owe more than 100 percent of their annual income. Because the Portuguese save so little, banks are forced to borrow money abroad. Each of the 10.6 million Portuguese citizens owes foreign banks an average of €18,300 and paid €590 in interest in 2009. "

[midas]

Another bloody SEC type situation ! Sex and drugs at the public expense again while the world waits for an oil slick to

kill off fish other marine life and coral reefs and scar the US coastline. As much as 60,000 barrels a day, more than 10 times the current estimate.

“ failures of the Minerals Management Service to provide vigilant oversight of offshore drilling are all too familiar to those who have watched them allow industry to walk away with billions of dollars in taxpayer money for years.

Most people only learned of M.M.S. when the Interior Department’s Inspector General found that its employees were doing drugs and having sex with oil industry representatives. For more than a decade, our group has exposed how M.M.S. and the Interior Department have failed to ensure that industry is making accurate royalty payments for the oil and gas they extract from federal land and off shore ”

http://roomfordebate.blogs.nytimes.com/201...e-oil-industry/

What has happened to us as humans ?

Isn’t this the way the Roman Empire collapsed ? I am speechless.

Edited May 9, 2010 by midas

[flying]

Another bloody SEC type situation ! Sex and drugs at the public expense again while the world waits for an oil slick to

kill off fish other marine life and coral reefs and scar the US coastline. As much as 60,000 barrels a day, more than 10 times the current estimate.

What has happened to us as humans ?

Isn’t this the way the Roman Empire collapsed ? I am speechless.

This is going to be BamBams Katrina if not worse.

It is getting surprisingly...or not? little coverage here...considering the possible impact.

At the original 5000 barrels a day it was 210,000 gallons of crude being dumped into the sea.

Something I read that I posted elsewhere....

we do rely on the Ocean's contribution for something like 70% of our oxygen don't we?

Two thirds of the worlds population live within 40 miles of the ocean.

One-Sixth of the worlds population gets all their protein from the fish of that ocean.

The rain we see & the water we drink are tied to that ocean too.....

I hope those domes they have built are successful.

How about this.............

Would it surprise you to find it could be Halliburtons fault?

I never realized how many places they have a finger in...

Halliburton

It’s hard to have a worse public image than Halliburton, the multinational engineering firm whose image took a beating during the first part of the Iraq War. But the company may well get slugged again over the Gulf accident, too. The latest accusation: The cement slurry Halliburton was pumping into the drill hole prior to the Horizon’s explosion may have in fact been at fault.

http://industry.bnet.com/energy/10004219/g...all-implicated/

[churchill]

Greece could modify EU-IMF deal: minister

Is the Ink dry yet !

http://uk.finance.yahoo.com/news/greece-co..._medium=twitter

[midas]

Greece could modify EU-IMF deal: minister

Is the Ink dry yet !

http://uk.finance.yahoo.com/news/greece-co..._medium=twitter

then what about this ?

Where is 12D with his AK47 ?

Surely this is too silly for words ?

British taxpayers ordered to bail out euro

Britain faces paying out billions of pounds under a European Union deal intended to prevent another financial crisis like the one in Greece.

http://www.telegraph.co.uk/news/worldnews/...l-out-euro.html

[churchill]

Darling set to oppose deal and

Osborne sounded out by euro finance ministers

http://www.bbc.co.uk/blogs/thereporters/ro...by_euro_fi.html

[Harry2]

Darling set to oppose deal and

Osborne sounded out by euro finance ministers

http://www.bbc.co.uk/blogs/thereporters/ro...by_euro_fi.html

Looks a gloomy 2010. As well as the Euro continuing to crumble - presumably Club Med bailouts will go on until Germany has enough. The other potential crises coming in next 12 months:

1. China property bubble

2. Iran nuke facilities bombed / their anti-Israel proxies starting new ME war.

[midas]

Darling set to oppose deal and

Osborne sounded out by euro finance ministers

http://www.bbc.co.uk/blogs/thereporters/ro...by_euro_fi.html

this is all very underhanded. It stinks !

Darling may not even be there in a day or two ?

" British exposure to liabilities created by a bail-out under the scheme would amount to around 10 per cent of the total loan. If a country failed to repay, the cost to Britain would be ¤10 billion (£8.6 billion) for every ¤100 billion on which it defaulted.

The scheme will present an immediate dilemma for an incoming Conservative government. A bail-out would increase British liabilities and debt at a time when Mr Cameron would be seeking to restrain spending.

Refusal to lend the money would plunge a Tory prime minister, overseeing a coalition or minority government, into a damaging conflict with the EU.

This is CRAZY , Cameron hasnt even been appointed PM yet with a policy to cut spending drastically and

already they will incurring more debt.

I would tell the Eurozone to get stuffed TOTALLY .

Edited May 9, 2010 by midas

[teletiger]

The Eurozone is toast. Here's why.

http://www.zerohedge.com/article/european-...t-simple-charts

Throwing money at Greece is a complete waste. Greece will default down the line which is why Merkel wants to pay in instalments. When Greece defaults there will still be some left in the war chest for the next in line, Italy, Spain, Portugal?

This just breaking

http://www.zerohedge.com/article/smoking-g...andreous-career

Regards.

[AlexLah]

http://www.thisblogrules.com/2010/03/dog-t...-for-years.html

[teletiger]

The people have spoken. Angela either wasn't listening or didn't believe them. Either way that's a big FAIL Angela.

"German coalition 'suffers key regional poll loss'"

http://news.bbc.co.uk/2/hi/europe/8670554.stm

Regards.