Financial Crisis

[midas]

I believe the US corporations will continue to lay off people and cut costs and most importantly outsource as it is still more profitable to produce (for example) cars in China.

Wouldn't you if you were said corporation? Or would you stand your ground and "Go American" and then watch yourself go out of business as you become less competitive because you're paying wages, health-care benefits, etc. etc. up the arse?

It's not only in the USA The OECD as a whole faces this problem.

OECD employment report makes for grim reading

The report, OECD Employment Outlook 2009: Tackling the Jobs Crisis, states unemployment in its 30-member economies may rise to 57 million people, despite an improving economic situation.

OECD secretary general Angel Gurria says the financial and economic crisis has developed into a job crisis.

The OECD’s average unemployment rate rose to 8.5% in July, which is the highest since World War II.

http://www.nbr.co.nz/article/oecd-employme...-reading-111070

[Naam]

OECD secretary general Angel Gurria says the financial and economic crisis has developed into a job crisis.

it did?

[12DrinkMore]

I am pleased that Merkel won the German election.

http://www.bloomberg.com/apps/news?pid=206...id=a6XjO.79Q8nc

She is a breath of fresh air, lowering taxes, simplifying the system, decreasing regulation and prepared to overturn stupid laws, in this case to keep the nuclear power stations running longer.

This is exactly the opposite of Brown and the Labour party, who only understand increased taxes, increased regulation, increased government all with decreased benefits for the tax payers.

The G20 circus is over.

http://www.bloomberg.com/apps/news?pid=206...id=aVpPMKLa50rc

The obvious has been restated, that the Great US Consumer is expected not to consume as much but to repay debt and save. And that the Great Producers need to become the new Great Consumers. The first bit is easy, as the Home Equity Release game has all but collapsed and more debt is not so easy to get. So it's down to the Asians to start buying the stuff that they produce. Are they up to it?

The circus of Our World Leaders moves to Istanbul, where the IMF will be considering how to flex its increased power.

So back to the vast number of unemployables. You want jobs? You want to see where the NEW JOBS are coming from? Vote for Brown, he is personally guaranteeing 500,000 of them.

http://www.independent.co.uk/news/uk/polit...ue-1794248.html

Ms Cooper certainly has got to grips with the problem,

"The faster you can get people into work, the more you can do to keep overall unemployment down. It is a way of giving people a chance.

With that sort of acumen she has to be a winner, however, she is displaying the usual Labour ineptitude for finance and figures

She said: "Each 100,000 [people] off the claimant count saves £700,000 in taxes and benefits."

How does she work that out? That is only 7 Quid/person. Surely she isn't just taking into account the cost of keeping a file on them at her office?

[samuibeachcomber]

As someone keeps on pointing out on this thread it really comes down to the idea of we know why jobs are being lost but we have no clue where they are going to be created.

Will be interesting to see how it goes.

It is no secret Obama is pro union or we should say talks pro union.

Now he wants to go after Walmart for not being union etc.

Yet a big Union like the UAW saw what happened at GM.

Will that sort of implosion help Walmart do what it does best?

People here want cheap prices with high pay. How does that work?

Cheap prices means export the jobs because none can pay Joe Blow top $$ to

work in expensive T-shirts doing menial labor at GM. Yet that is what the unions drive the costs up to.

Same happens at most other union run jobs. Drive the cost up then wonder where the jobs went. They went to get competitive so they could survive.

They all want their cake & eat it too...Those days are gone.

many new jobs will surely come via the new renewable energy sector,green conservation etc,and health care is a growing industry.If the world ever learns that consumption is not the way to go and can accept a more prudent way of living then there is some hope.in the west this lesson is already being forced upon us and it will do everyone a power of good to live within ones means.

[midas]

As someone keeps on pointing out on this thread it really comes down to the idea of we know why jobs are being lost but we have no clue where they are going to be created.

Will be interesting to see how it goes.

It is no secret Obama is pro union or we should say talks pro union.

Now he wants to go after Walmart for not being union etc.

Yet a big Union like the UAW saw what happened at GM.

Will that sort of implosion help Walmart do what it does best?

People here want cheap prices with high pay. How does that work?

Cheap prices means export the jobs because none can pay Joe Blow top $$ to

work in expensive T-shirts doing menial labor at GM. Yet that is what the unions drive the costs up to.

Same happens at most other union run jobs. Drive the cost up then wonder where the jobs went. They went to get competitive so they could survive.

They all want their cake & eat it too...Those days are gone.

many new jobs will surely come via the new renewable energy sector,green conservation etc,and health care is a growing industry.If the world ever learns that consumption is not the way to go and can accept a more prudent way of living then there is some hope.in the west this lesson is already being forced upon us and it will do everyone a power of good to live within ones means.

Ok but then people will to need to stop using the word " recovery "

We will need to use the term " stabilisation " or even " economic redirection " because

without consumption, there can be no more growth and without growth,

there can be few new jobs and no higher consumer incomes.

[samuibeachcomber]

sure the powers that be want to maintain the status quo,that is spend spend spend,but i think the public have woken up to the fact that it is not in their best interest anymore to keep feeding this "whore".and as i said jobs can be created in the non consumption sector.I for one seriously hope that buying for the sake of buying and going into debt days are over.now people understand they've been taken for a ride and people now want to pull their horns in.china is a different case and consumption may continue/grow,they too will have to learn the hard way.

[midas]

If we are pinning our hopes on China to lead the way…….maybe things there

will not unfold the way we expect

China’s Mr. Wu Keeps Talking

AT 79, Wu Jinglian is considered China’s most famous economist.

In the 1980s and ’90s, he was an adviser to China’s leaders, including Deng Xiaoping.

He helped push through some of this country’s earliest market reforms, paving the way for

China’s spectacular rise and earning him the nickname “Market Wu.”

In books, speeches, interviews and television appearances, he warns that conservative

hardliners in the Communist Party have gained influence in the government and are trying

to dismantle the market reforms he helped formulate.

Last year, China’s state-controlled media slapped him with a new moniker: spy.

Mr. Wu says the spy rumors were “dirty tricks” employed by his critics to discredit him.

“I have two enemies,” he said in a recent interview. “The crony capitalists and the Maoists.

They will use any means to attack me.”

http://www.nytimes.com/2009/09/27/business...B029CzoyPVb4D3Q

[AlexLah]

Plarex, we need some more dates, please, to keep this entertaining. Do you see yourself more as Neo or as The Oracle???

Jcon I would say I am at least as handsome as Neo, ha ha ha! Now some of you might find I keep repeating the same 1+1=2 "wisdom" as a bit of foolish maybe but ask yourself the question why all these jobs had to be outsourced, was it really (Only/mainly) because of increasing profits? If you like to know some of the other reasons please do some digging and you will find out yourself it is not that simple. I can tell you here but you would most likely not believe me so please find out if you like to know. (The docu I mentioned (the century of the self on YT is a good starting point).

As someone keeps on pointing out on this thread it really comes down to the idea of we know why jobs are being lost but we have no clue where they are going to be created.

Exactly Abrak, where are the plans I keep asking and when I ask some people they just look at me and say well it is all part of the natural bizz cycle so we just have to go through this recession and then tomorrow everything will magically start recovering again. Look at the stockmarket is another argument people come up with, you see we are hitting the 10.000 DOW again so things are getting better right?

I believe the US corporations will continue to lay off people and cut costs and most importantly outsource as it is still more profitable to produce (for example) cars in China.

i always admired wisdom and wisdom combined with prophecies is most admirable. on the other hand i feel inferior for hardly ever posting great wisdom such as "two plus two equals four"

Please see my above question related to the comment and find out if you still keep whistling. On the other hand it is likely a waste of your time as you are only interested in your own situation (No pun intended).

Anyways, have a good day all!

"The Creator of The Oracle"

[Naam]

Please see my above question related to the comment and find out if you still keep whistling. On the other hand it is likely a waste of your time as you are only interested in your own situation (No pun intended).

right you are Alex! reading one of your boring and irrelevant questions (especially if one has to turn back a page) is indeed a waste of time

[lannarebirth]

If we are pinning our hopes on China to lead the way…….maybe things there

will not unfold the way we expect

China's Mr. Wu Keeps Talking

AT 79, Wu Jinglian is considered China's most famous economist.

In the 1980s and '90s, he was an adviser to China's leaders, including Deng Xiaoping.

He helped push through some of this country's earliest market reforms, paving the way for

China's spectacular rise and earning him the nickname "Market Wu."

In books, speeches, interviews and television appearances, he warns that conservative

hardliners in the Communist Party have gained influence in the government and are trying

to dismantle the market reforms he helped formulate.

Last year, China's state-controlled media slapped him with a new moniker: spy.

Mr. Wu says the spy rumors were "dirty tricks" employed by his critics to discredit him.

"I have two enemies," he said in a recent interview. "The crony capitalists and the Maoists.

They will use any means to attack me."

http://www.nytimes.com/2009/09/27/business...B029CzoyPVb4D3Q

Let's see how China markets look in a week or so. It's go time.

[mommysboy]

go!

where?

[midas]

Let's see how China markets look in a week or so. It's go time.

I think Mr Wu is talking about the Chinese political manouvering of the economy

not horse racing

[mommysboy]

So, that's it. I've now reached the point where I am ready to join up.

Bring on the revolution. I have had enough of

Politicians - who were given the trust and responsibility to represent and protect us, paying themselves millions in the process.

Bankers - who accepted our money and gamboled it away, paying themselves billions in the process.

I have been through

- the denial phase (surely it will be over soon)

- the logical phase (move money around looking for somewhere safe)

- jesus phase (is it really now this bad?)

- acceptance phase (yes is dam_n well is)

so now I am in the Kill The Responsible phase.

Really, I am very angry about this.

These governments have presided over populations who they know are not always going to make the right personal decisions. That is why we have laws and politicians to make them, codes of conduct, FSA's to prevent your average George, Joe or John from himself. So what happened? They have FAILED.

Now I am one of the most passive people I know. But I am now very angry that my trust has been proven to be misplaced, and I have been let down.

If I now feel this way, then, once the immensity of what is about to hit the UK in particular, including all the 1,000,000 ex pat pensioners and their families, where will it lead to? The Icelandic government is besieged, in Greece there have been riots. The Brits can take a lot, but once they get riled then the fighting becomes very bitter.

You really need to get a grip and move on! Your day in day out rantings don't do you or anyone else any good.

[lannarebirth]

Let's see how China markets look in a week or so. It's go time.

I think Mr Wu is talking about the Chinese political manouvering of the economy

not horse racing

Hu is Mr. Wu and Wen does he see the SSE plunging?

[AlexLah]

Please see my above question related to the comment and find out if you still keep whistling. On the other hand it is likely a waste of your time as you are only interested in your own situation (No pun intended).

right you are Alex! reading one of your boring and irrelevant questions (especially if one has to turn back a page) is indeed a waste of time

Well if you payed just a little bit of attention you would have found that the question asked is actually on this page but not necessarily relevant to your situation, (what is, some might wonder....) . It seems your long and short term memory are severely affected, it might be your age Naam..... No worry I am always kind for the elderly people, so therefore.

If you could come up with at least one alternative reason for outsourcing other than the usual replies you get like it is cheaper , more profit bla bla etc, please feel free to to come up with something. Surprise us! Oh and, if you can't see a (not meaning the) connection between the supposed mess we (not meaning you/me) are in at the moment and outsourcing I would say it is beddy time for you.... And after you feel freshy again please watch the docu I mentioned, yes the title of it is on this page.

Have a nice day all...

[Naam]

Well if you payed just a little bit of attention you would have...

paying attention? to what you write? i read it and then try to forget it. which is not easy. most of the time it makes me chuckle for minutes.

[Naam]

If you could come up with at least one alternative reason for outsourcing...

it is none of my business to come up with alternatives and neither is it yours. the management of a company makes the decision whether outsourcing achieves gains or does not pay. in fact my view is that outsourcing is something good as it levels global unemployment even though with only a minimal impact.

a job outsourced and lost in country X creates a job in country Y and in most cases additional value for the company and its shareholders and its management. thus benefits for a multiple of parties. as simple as that! no need to bang the head against a wailing wall and bitch about it.

as far as my age is concerned i admit that i'm older than you but this is as irrelevant as me mentioning that my wife draws more pocket money than you can earn in any company if you work with the same attitude you display here

[AlexLah]

t is none of my business to come up with alternatives and neither is it yours. the management of a company makes the decision whether outsourcing achieves gains or does not pay. in fact my view is that outsourcing is something good as it levels global unemployment even though with only a minimal impact.

Naam if you would take some time to watch the docu I mentioned ( it is really an interesting one) you would realize that it does not have a minimal impact on the longer term (In many cases) as is obvious. It all depends on which side of the game you are. It is part of my business as it is related to some of the the work I do.

a job outsourced and lost in country X creates a job in country Y and in most cases additional value for the company and its shareholders and its management. thus benefits for a multiple of parties. as simple as that! no need to bang the head against a wailing wall and bitch about it.

Additional value is just a small part of considering whether to outsource or not. Think off loss of technology and (local) knowledge for example. So I am not bitching about it or banging my head, just saying if you look a bit deeper at something like outsourcing it has at times far greater consequences that people do not fully realize when they make that decision. Take the US as an example. If the goal of outsourcing is to move wealth(relatively speaking) to different parts of the world then I guess those people that make those decision must also be aware they are taking (in many cases) wealth from another part.

as far as my age is concerned i admit that i'm older than you wink.gif but this is as irrelevant as me mentioning that my wife draws more pocket money than you can earn in any company if you work with the same attitude you display here whistling.gif

I think over the different threads I have been mostly kind and I believe never showed any serious nitpicking and have been honest about my personal situation. A bit of fun making here and there is what a thread keeps alive, as we can clearly see from this thread.

So keep up the good work Naam, one day you might achieve your "Mission statement goal"

Just kidding naaaaaaaaaaa

Have a nice day/evening all!

[midas]

another example of " extend and pretend "

Is it just me ?

FDIC considers calling for bank advances

By Joanna Chung and Francesco Guerrera in New York

Published: September 28 2009 21:00 | Last updated: September 28 2009 21:00

US banks will have to advance tens of billions of dollars to the cash-strapped fund protecting depositors at the Federal Deposit Insurance Corporation under a proposal to be to be put forward by regulators on Tuesday.

The fund, which insures up to $250,000 per depositor in each bank, has been depleted this year after the failure of 95 lenders. It now stands at about $10.4bn, the lowest since the peak of the savings and loan crisis in 1993.

http://www.ft.com/cms/s/cd5ace0a-ac68-11de...&ftcamp=rss

[Abrak]

another example of " extend and pretend "

Is it just me ?

FDIC considers calling for bank advances

By Joanna Chung and Francesco Guerrera in New York

Published: September 28 2009 21:00 | Last updated: September 28 2009 21:00

US banks will have to advance tens of billions of dollars to the cash-strapped fund protecting depositors at the Federal Deposit Insurance Corporation under a proposal to be to be put forward by regulators on Tuesday.

The fund, which insures up to $250,000 per depositor in each bank, has been depleted this year after the failure of 95 lenders. It now stands at about $10.4bn, the lowest since the peak of the savings and loan crisis in 1993.

http://www.ft.com/cms/s/cd5ace0a-ac68-11de...&ftcamp=rss

BTW if anyone cant see how ludicrous this situation is it is beyond me. The FDIC has now something like 0.4 cents in reserve to guarantee every US$1 of deposit. More to the point is it has spent less than 5% of its losses actually bailing out depositors - the balance on loan holders mostly.

Now as the FDIC is financed by banks, extra funding will put extra pressure on banks already up shit creek, which of course, will put extra pressure on the FDIC. It will, as with all banking crises, end when the Government steps in to bail them all out (in return for the banks bailing out the budget deficit.)

[flying]

The FDIC has now something like 0.4 cents in reserve to guarantee every US$1 of deposit.

Now as the FDIC is financed by banks, extra funding will put extra pressure on banks already up shit creek

Musical Chairs USA

But funny too they take this route now.

They have been approved for 500 B in additional funds/credit line with the Treasury.

Yet they are clamping down here? Seems odd in this day of

bail...bail...bail.. I mean it is after all just paper

Edited September 29, 2009 by flying

[flying]

The FED eyes money market accounts.....

Why is the Fed eyeing the money market funds? Two reasons perhaps.

First and most simply because, as notorious criminal Willy Sutton once said, that is where the money is. And if it stays there, the Fed must find a way to affect it to drain liquidity while mitigating the effects of their actions on specific institutions and sectors of the financial system.

Secondly, there is a strong possibility that the Fed's initial attempts to drain will not only involve reverse repos, but also an increase in the interest rate which it pays on the excess reserves.

Full article

http://jessescrossroadscafe.blogspot.com/2...unds-redux.html

Another............

http://truthingold.blogspot.com/2009/09/la...posal-from.html

[Naam]

blogspot.com is the equivalent of naams_bullshit.com

[BlackJack]

Conspiracy what conspiracy

Official Records of phone calls

Goldman

[quiksilva]

The New York Post reporting on who called who, and at what time, without any idea about the content of the discussions, other than he "left word" means absolutely nothing, he could have been speaking in Klingon and discussing zombie survival plans...

[midas]

The New York Post reporting on who called who, and at what time, without any idea about the content of the discussions, other than he "left word" means absolutely nothing, he could have been speaking in Klingon and discussing zombie survival plans...

quiksilva since the Merrill Lynch and Bank of America debacle

i dont understand why anyone would want to look for reasons to give any benefit of the doubt regarding

shenanigans that went on ( and still continue ) between Goldman Sachs and Treasury Secretary Hank Paulson

Maybe you will belive The New York Post more if Paulson ends up behind bars ?

Edited September 30, 2009 by midas

[midas]

Amercia has already changed beyond all recognition in some parts

Isnt it strange that Billings Montana has a private police force

that use Serbia's coat of arms

http://www.huffingtonpost.com/huff-wires/2...s-montana-jail/

http://www.stevequayle.com/News.alert/09_P...oto.of.day.html

[BlackJack]

If you read it carefully you will see the times of when and where certain individuals were contacted - some insiders were contacted before Wall Street opening bell and some outside the inner circle well after the bell.

They could argue that they were talking about the fantastic morning sex with the secretary or minutes away financial issues.

I bet Mr Pink and the twins on it that if a case to convict was set up then the jury would convict on this and other circumstantial evidence - yet to receive.

Insider traders have been convicted on a lot less evidence.

Democracy as the USA shouts from the rooftops to the World - so let the people decide!!

This is just one of the many cases being built in the USA.

[BlackJack]

The New York Post reporting on who called who, and at what time, without any idea about the content of the discussions, other than he "left word" means absolutely nothing, he could have been speaking in Klingon and discussing zombie survival plans...

These guys all share the same Goldman Sachs DNA and so it would be safe to assume what they were talking about

[quiksilva]

The New York Post reporting on who called who, and at what time, without any idea about the content of the discussions, other than he "left word" means absolutely nothing, he could have been speaking in Klingon and discussing zombie survival plans...

quiksilva since the Merrill Lynch and Bank of America debacle

i dont understand why anyone would want to look for reasons to give any benefit of the doubt regarding

shenanigans that went on ( and still continue ) between Goldman Sachs and Treasury Secretary Hank Paulson

Maybe you will belive The New York Post more if Paulson ends up behind bars ?

Yes I would, because to put someone behind bars you need to compile evidence beyond reasonable doubt, which this is not.

We can all speculate about what was discussed, but without records we can never KNOW, and that's the crucial difference.

Im not looking for reasons to give anyone the benefit of the doubt, I think those responsible for this mess need to be made accountable, but to do that real proof is needed, and whilst this article might sell a few newspapers, the content doesn't really amount to all that much.

PS Midas, I'm honestly curious, how do you feel today about your prediction six months or so ago of "no recovery for 20 years"?

Edited September 30, 2009 by quiksilva