Financial Crisis

[Abrak]

Well who would have thought?

Didn't Someone post that Mr O & Mr G had saved the world already?

http://www.cnbc.com/id/32551478/

Economy In Much Worse Shape Than Expected: White House

Moreover, the figures show the public debt doubling by 2019 and reaching three-quarters the size of the entire national economy. Romer predicted unemployment could reach 10 percent this year and begin a slow decline next year.

Still, she said, the average unemployment will be 9.3 in 2009 and 9.8 percent in 2010.

What's more, the high unemployment could last well into the congressional election campaign next year, turning the contests into a referendum on Obama's economic policies.

You know Flying I am genuinely struggling with this...

You can point at some leading indicators and they show sharp recovery, then you find they are dependent on the stockmarket which obviously shows great recovery. You have some very poor indicators (despite recovery there isnt any) such as consumer confidence and consumer demand.

Then I talk with people who run companies and they are seeing a definite pick up in demand (lead indicator companies such as contract manufacturing). Almost as though the restocking that should have happened last quarter is happening this.

So sure - the employment numbers are going to be crippling for the next 5 years - I doubt they will drop below 9% in the USA. But what is really going on? We see the market up. We see confidence up. We see a few indicators up. Obviously if things fall down they rebound so things are bound to be up.

The economic numbers have been awful. But my guess is that there is a real bounce going out there. I doubt it will last long.

[flying]

But what is really going on? We see the market up. We see confidence up. We see a few indicators up.

Good question....But what is REALLY going on....

You see a mirage that is temporary. More power to those who capitalize on it.

But what you see is the result of Billions of USD being pumped into the failed system.

If your car runs out of gas & you squirt a gallon directly into the carb..Yes sure it will sputter & rev...Before it dies again

But please believe me I would be very happy if it all goes to the moon & we magically recover.

But the gas station is broken...They can use the emergency refill jug for only for so long. Using that jug has a downside effect too you know?

Edited August 26, 2009 by flying

[flying]

Monetization of USTreasurys In Isolation

http://www.financialsense.com/fsu/editoria.../2009/0820.html

Not a cheery article by any stretch

[flying]

One Konrad Hummler is very upset with the US over the UBS affair

Here is the original German text

http://www.bernerzeitung.ch/schweiz/standa.../story/15439843

Here is the page translated by Google so I am not sure of its accuracy. But I think I get the gist of it.

Google translation

EDIT: the Babel fish translation might be better

http://babelfish.yahoo.com/translate_url?d...TrUrl=Translate

Edited August 27, 2009 by flying

[Naam]

One Konrad Hummler is very upset with the US over the UBS affair

i wouldn't call stating facts and issueing tactical recommendations "upset". basically i agree with Hummler as i know that his (today's) recommendations have been implemented by a lot of investors since several years.

in this context i would like to see the eyes of those who run the IRS when they (sooner or later) check the swiss holdings of the 4,550 revealed UBS clients and find only peanuts. did the IRS really think that all these clients are brain-amputated? they had ample time to rerout their holdings to safer places!

[midas]

Do you agree that a public healthcare system as in Germany and many other countries would not be a better solution compared to the system that is now in use in the US? If not please explain why.

In the last six years, the Patients Association claims hundreds of thousands have suffered from poor standards of nursing, often with 'neglectful, demeaning, painful and sometimes downright cruel' treatment. The charity has disclosed a horrifying catalogue of elderly people left in pain, in soiled bed clothes, denied adequate food and drink, and suffering from repeatedly cancelled operations, missed diagnoses and dismissive staff

Pamela Goddard, a piano teacher from Bletchingley, in Surrey, was 82 and suffering with cancer but was left in her own excrement and her condition deteriorated due to her bed sores.

Florence Weston, from Sedgley in the West Midlands, died aged 85 and had to remain without food or water for several days as her hip operation was repeatedly cancelled.

http://www.telegraph.co.uk/health/healthne...ts-exposed.html

[flying]

i wouldn't call stating facts and issueing tactical recommendations "upset". basically i agree with Hummler as i know that his (today's) recommendations have been implemented by a lot of investors since several years.

in this context i would like to see the eyes of those who run the IRS when they (sooner or later) check the swiss holdings of the 4,550 revealed UBS clients and find only peanuts. did the IRS really think that all these clients are brain-amputated? they had ample time to rerout their holdings to safer places!

Agreed & if this translation is close,it is something I have said before regarding the reliance on the citizens ability to carry the future tax burden.

Given the huge U.S. national debt is the land upside down on another international capital in urgent need. The U.S. government budget according Hummler works like a "Ponzi scheme" () is a pyramid scheme.The growth of the debt could be continued only so long as the audience no doubt about the continued performance of the Americans pay.

[midas]

i wouldn't call stating facts and issueing tactical recommendations "upset". basically i agree with Hummler as i know that his (today's) recommendations have been implemented by a lot of investors since several years.

in this context i would like to see the eyes of those who run the IRS when they (sooner or later) check the swiss holdings of the 4,550 revealed UBS clients and find only peanuts. did the IRS really think that all these clients are brain-amputated? they had ample time to rerout their holdings to safer places!

Agreed & if this translation is close,it is something I have said before regarding the reliance on the citizens ability to carry the future tax burden.

Given the huge U.S. national debt is the land upside down on another international capital in urgent need. The U.S. government budget according Hummler works like a "Ponzi scheme" () is a pyramid scheme.The growth of the debt could be continued only so long as the audience no doubt about the continued performance of the Americans pay.

I wonder if they have the guts to impose these kinds of taxes on Wall Street ?

Why should it only be the citizens ....why not the real fat cats ? But then I forgot.............. they are Obama's bosses

FSA chairman Lord Turner says City too big

“I think some of it is socially useless activity,” he said, adding that the financial sector had “swollen beyond its socially useful size” and seemed to make excessively large profits. “If increased capital requirements are insufficient, I am happy to consider tax on financial transactions, Tobin taxes,” he told a discussion organised by Prospect magazine.

http://business.timesonline.co.uk/tol/busi...icle6811548.ece

[Naam]

Agreed & if this translation is close,it is something I have said before regarding the reliance on the citizens ability to carry the future tax burden.

tax burden? what tax burden? the lion share of U.S. debt is held by foreigners. all what has to be done is monetising existing debt. you will not pay through your noses by paying taxes, you will pay through your noses because of inflation.

[Naam]

"Tobin taxes"

yawwwwnnnnnn... rubber sheets required to protect mattresses from the effects of wet Tobin dreams.

[flying]

Agreed & if this translation is close,it is something I have said before regarding the reliance on the citizens ability to carry the future tax burden.

tax burden? what tax burden? the lion share of U.S. debt is held by foreigners. all what has to be done is monetising existing debt. you will not pay through your noses by paying taxes, you will pay through your noses because of inflation.

Yes but back when he thought he would not be re-appointed Big Ben said he wouldn't monetize the debt. Are you saying he is not being forthright with us?

Because if you are then we are in total agreement

But Mr. Bernanke adamantly denied that would happen. "The Federal Reserve will not monetize the debt,"he said. "Either cuts in spending or increases in taxes will be necessary to stabilize the fiscal situation."

http://www.washingtontimes.com/news/2009/j...ed-chief-warns/

[midas]

You know that station Fox really sucks.............

Then again they all do now. CNN is ok at times

Then CNBC International Financial at night is good. But the day show is a big pump with idiots like Jim Cramer & Dennis Kneale telling us buy buy buy...recession is over baby.

But for the most part Stations like Fox & MSNBC have become no better than a news stand tabloid. They are so silly & basically battle each other with mis-information. It makes me sick if I happen to pause on those channels.

I am intrigued by your distaste for Fox News because right now it seems to be the ONLY TV station that

is covering the views of the new " FCC Diversity Czar "

This guys views are very radical - he wants to " tax broadcasters 100% of their operating revenue and give that to Public Broadcasting ".

Flying, this is not some far - fetched conspiracy theory - the spoken words and beliefs of this " Czar " ( which can be read

on the internet ) are just as sinister as the beliefs of the " Science Czar " and the " Green Czar ".

Consider this article and think about whether it is desirable for the Obama Regime to silent the likes

of Fox ?

http://www.cnsnews.com/public/content/arti...px?RsrcID=52435

[flying]

I am intrigued by your distaste for Fox News because right now it seems to be the ONLY TV station that

is covering the views of the new " FCC Diversity Czar "

This guys views are very radical - he wants to " tax broadcasters 100% of their operating revenue and give that to Public Broadcasting ".

Flying, this is not some far - fetched conspiracy theory - the spoken words and beliefs of this " Czar " ( which can be read

on the internet ) are just as sinister as the beliefs of the " Science Czar " and the " Green Czar ".

Consider this article and think about whether it is desirable for the Obama Regime to silent the likes

of Fox ?

http://www.cnsnews.com/public/content/arti...px?RsrcID=52435

Well yes what you say is true but, For the most part the two stations Fox & MSNBC

just go back & forth with the Dem's vs the Republicans....Liberals vs the conservatives.

They are both so one sided they tend to miss the bigger picture. Also they get so downright petty...Although in that respect MSNBC is much worse. They turn every event into a misguided story. For instance if anyone gets upset at town hall meetings well then they must be a conservative plant being paid as a disruptor.

That Rachel Madcow is ridiculous as is Keith Olberman,, Not that I listen to Rush Limbaugh but I wonder if they could do a show where they didn't dedicate a good portion of it talking about him? Then that loon Chris Mathews they should change the name from hard ball to odd ball. He invites folks on & yells at them rarely letting them speak.

Then on Fox you have Bill Oreilly & Beck...While Beck does get to the point he is not easy to watch or take seriously many times. He should drop the sensationalism & stick to the point.

Overall the internet is much better. At least you can quickly get to the point & sort the fluff.

As for the Czar you mention..It is not hard to believe. In the next year we will see the govt look under every stone as Naam said looking for money to help pay down their errors All they will achieve is to drive income into hiding. Or cause legit business to just throw in the towel.

If they need $$$ they know where to find it. Stop the war on supposed terror & drugs. Pack it in & call it a day. That alone would save enough to pay down the debt in short order. Not to mention who are we to be telling countries we will come clean their house when ours is in such a state of filthy disarray. While we are at it maybe stop being unwanted house guests in so many countries with our military bases. Again $$$$ to be saved.

If & when we see these evil threats paddling canoes into US waters then fine defend.

[midas]

Well yes what you say is true but, For the most part the two stations Fox & MSNBC just go back & forth with the Dem's vs the Republicans....Liberals vs the conservatives.They are both so one sided they tend to miss the bigger picture. Also they get so downright petty...Although in that respect MSNBC is much worse.

MSNBC, the media outlet owned by General Electric. In fact, one could say that MSNBC's coverage

of the health care debate resembles a paid advertisement more than actual 'news.'

Overall the internet is much better. At least you can quickly get to the point & sort the fluff.

Aha - but that is why more Americans need to question the intentions of Mark Lloyd the FCC diversity "czar" - he once said he wants to balance the Internet

what does that mean and is that next?

As for the Czar you mention..It is not hard to believe. In the next year we will see the govt look under every stone as Naam said looking for money to help pay down their errors All they will achieve is to drive income into hiding. Or cause legit business to just throw in the towel.

This goes beyond " looking for money " Mark Lloyd has praised “the incredible revolution” led in Venezuela by … Hugo Chavez! He admires Chavez for figuring out how to enlist the state media in his pursuit of power

By now it must be obvious even to blind Freddie that Czars like Mark Lloyd are radical socialists infiltrating all the federal regulatory agencies such as the Environmental Protection Agency and the Federal Communications Commission and if you do your own research- you will see that in almost every case they didnt even get FBI clearance let alone Congressional approval.

Edited August 27, 2009 by midas

[Naam]

Agreed & if this translation is close,it is something I have said before regarding the reliance on the citizens ability to carry the future tax burden.

tax burden? what tax burden? the lion share of U.S. debt is held by foreigners. all what has to be done is monetising existing debt. you will not pay through your noses by paying taxes, you will pay through your noses because of inflation.

Yes but back when he thought he would not be re-appointed Big Ben said he wouldn't monetize the debt. Are you saying he is not being forthright with us?

Because if you are then we are in total agreement

But Mr. Bernanke adamantly denied that would happen. "The Federal Reserve will not monetize the debt,"he said. "Either cuts in spending or increases in taxes will be necessary to stabilize the fiscal situation."

http://www.washingtontimes.com/news/2009/j...ed-chief-warns/

even my dogs know that monetising debt is the only solution

[Naam]

Then on Fox you have Bill Oreilly...

[12DrinkMore]

Here's a man, Turner, with an impossible job.

http://business.timesonline.co.uk/tol/busi...icle6811548.ece

Large parts of the City have grown too big and need to be cut down to size, if necessary by imposing new taxes, according to the chairman of the Financial Services Authority.

Lord Turner of Ecchinswell, an influential figure in the reform of banking rules in London and beyond, said that the City had grown “beyond a socially reasonable size”, accounting for too much of national output and sucking in too many of Britain’s brightest graduates.

“I think some of it is socially useless activity,” he said, adding that the financial sector had “swollen beyond its socially useful size” and seemed to make excessively large profits.

"Socially Useless Activity" - nice one coming from a Government body.

Anyway, he is banging his head against the wall.

http://business.timesonline.co.uk/tol/busi...icle6801456.ece

Royal Bank of Scotland (RBS), which is 70 per cent-owned by the British taxpayer, has awarded a bonus worth £2.3 million to a new executive including £1 million just to stay with the company for two years.

...

It emerged last week that RBS had spent more than £10 million on hiring two bankers. Antonio Polverino, a star banker from Merrill Lynch, is on a £7 million one-year package while the bank’s new finance director, Bruce Van Saun, is joining from Bank of New York Mellon next month on a multimillion-pound salary.

I wonder what Antonio can produce for his 7,000,000 Quid, or 20,000 Quid every day?

Bernanke lives on a moderate USD 200,000 and King scrapes by with just 300,000 Quid, and they are running the Central Banks.

Suddenly a thought strikes me, could this be why the economies are in the crapper, down the plug 'ole?

MAYBE ALL THE CLEVER GUYS ARE EARNING BILLIONS IN THE BANKS AND THE GUYS LEFT RUNNING THE CENTRAL BANKS ARE THE DROSS, THE INCOMPETENTS, WHO CAN'T GET A DECENT JOB IN THE PRIVATE SECTOR?!!!!!

Why on earth is Merv farting around in London on a pittance when he could be earning TWENTY times his salary running a single bank? Why is Ben trudging around with all the earache for just USD 500 per day (Jeeze, that's only 15,000 Baht/day) ? Maybe they just can't get a decent job offer? I wonder why?

Edited August 27, 2009 by 12DrinkMore

[flying]

even my dogs know that monetizing debt is the only solution

Funny it is so clear to them yet so many humans utterly cannot comprehend that.

Then on Fox you have Bill Oreilly...

Tell me about it. I cannot stomach 30 seconds of that imbecile.

[badge]

Odd

http://www.nytimes.com/imagepages/2009/07/...TS_GRAPHIC.html

[badge]

Uncomfortable!

http://news.bbc.co.uk/2/hi/business/8222145.stm

[flying]

Odd

http://www.nytimes.com/imagepages/2009/07/...TS_GRAPHIC.html

There is money to be made supplying tools of the trade.

Should not seem odd as that is the start of the supposed war on terror or as Bush & Mr O would say TERROR !!!!!!!

[flying]

Uncomfortable!

http://news.bbc.co.uk/2/hi/business/8222145.stm

Not as uncomfortable as in the US.......

http://www.kxmc.com/News/Nation/427418.asp

Wait till all the millions on Unemployment exhaust their benefits soon.

[sokal]

even my dogs know that monetising debt is the only solution

Why didn't Paul Volker just do that in the 80s then ?

Edited August 28, 2009 by sokal

[12DrinkMore]

Here's an analysis of Bernanke's game in monetizing the debt.

http://www.chrismartenson.com/blog/shell-g...zing-debt/25806

Summary

The Federal Reserve and the federal government are attempting to "plug the gap" caused by a slowdown of private credit/debt creation.

Non-US demand for the dollar must remain high, or the dollar will fall.

Demand for US assets is in negative territory for 2009

The TIC report and Federal Reserve Custody Account are reviewed and compared

The Federal Reserve has effectively been monetizing US government debt by cleverly enabling foreign central banks to swap their Agency debt for Treasury debt.

The shell game that the Fed is currently playing obscures the fact that money is being printed out of thin air and used to buy US government debt.

[midas]

I will believe it when I read about it ............there has to be a catch here ..............

Barney Frank Says Ron Paul's Audit The Fed Bill Will Pass In October

Edited August 28, 2009 by midas

[badge]

Odd

http://www.nytimes.com/imagepages/2009/07/...TS_GRAPHIC.html

There is money to be made supplying tools of the trade.

Should not seem odd as that is the start of the supposed war on terror or as Bush & Mr O would say TERROR !!!!!!!

Very true Flying. But the left side of the chart is'nt of interest, its the ramping up on the right hand side that caught my attention.

[teletiger]

For those of us with slower connections.

http://www.zerohedge.com/article/barney-fr...hr-1207-october

Agreed Midas.

Regards.

[AlexLah]

What is going on here, logged in but cannot post 3 times in a row then finally logged in and on the reply screen, type my message and it's gone.

Anyway, try again. read this last one: http://www.zerohedge.com/article/racketeer...ses-information

So most likely it will be blocked for national security reasons or something. Has anybody ever asked who those parties were that withdrew 500 Billion on 11-9-08 (11 September) (or 15 September?)

Yes!

You don't believe it right?

Edit: Added the 15-9 date as now it seems there is some confusion about what he actually meant. Was it that on Monday they were told that on Thursday that happened (11-09) or did it happen on that Monday they had the meeting? It seems the first is correct.

Edit 2: http://www.house.gov/jec/Research%20Report...08/rr110-25.pdf

The "Official" story..........

Edited August 28, 2009 by AlexLah

[Naam]

even my dogs know that monetising debt is the only solution

Why didn't Paul Volker just do that in the 80s then ?

debt in the 80s was peanuts (even in percentage of GDP) compared to nowadays and what is still in the offing. besides, Volcker's main target was to erase or at least tame inflation with skyhigh interest rates. i remember 30Y-UST yielding 13-14% in '82.

[midas]

Anyway, try again. read this last one: http://www.zerohedge.com/article/racketeer...ses-information

So most likely it will be blocked for national security reasons or something. Has anybody ever asked who those parties were that withdrew 500 Billion on 11-9-08 (11 September) (or 15 September?)

Thanks Alex………..very interesting document in that link

But oh dear ! paragraph 13 in the declaration of the Clearing House lawyer sounds ominous .............

“ We respectfully submit that this is information virtually everyone would consider potentially disasterous “

Edited August 28, 2009 by midas