Financial Crisis

[midas]

Midas, aren't you a transplanted Limey to Oz? Why are you so transfixed with what's going on in Yankee land? We'll land on our feet, as always. Chill out. Or, at least worry about what happens when natural resources run out down under....

why......? here is why ..... very creepy

President Obama May Get Power to Shut Down Internet Without Any Court oversight

http://www.infiniteunknown.net/2011/01/27/president-obama-may-get-power-to-shut-down-internet-without-any-court-oversight/

[midas]

As a former commuter there, I'm glad they did this. For sure, look how things got heated up in the UK. Or many other hot spots around the world. This is from CNN:

"BART temporarily interrupted service at select BART stations as one of many tactics to ensure the safety of everyone on the platform," the transit agency said in a statement on its website Friday.

BART said it took the actions because protesters said they "would use mobile devices to coordinate their disruptive activities and communicate about the location and number of BART Police."

Duh. The protesters said they would do this so the authorities responded. Good for them.:jap:

And then there is this:

The incident happened Thursday, the same day that British Prime Minister David Cameron proposed a crackdown on social media to quell riots.

"Everyone watching these horrific actions will be struck by how they were organized via social media," Cameron said Thursday during an address to Parliament. "Free flow of information can be used for good. But it can also be used for ill. And when people are using social media for violence, we need to stop them."

Protesters in San Francisco have used websites and social media to organize demonstrations, including a rally last month that shut down a subway stop.

This has nothing to do with freedom of speech. Back to the OP please.

We have seen nothing yet in terms of protests. Wait until something happens to the foods and distribution

[midas]

Duh. The protesters said they would do this so the authorities responded. Good for them.:jap:

Have no horse or real interest in this but...........

If all it takes to shut down an essential service is a statement of "They said so we did"

Then Duh indeed.......resistance is futile as the sheep are so easily herded.

Just sayin

In a nutshell

[Naam]

12 said: As sending all this cash around the globe only requires a computer, I do not understand why there are hundreds of thousands of financial industry employees. What they do all day I don't know, simply looking at screens and graphs I suppose. Surely the vast majority could now be simply replaced by algorithms?

i can't talk seriously to an algorithm, neither conduct some small talk nor can i issue complicated instructions, lodge a complaint or negotiate the price of an asset or applicable fees. and there are millions like me around the globe. two hours ago i was dealing. not a fancy amount but thrice $200k value for three different portfolios. that kept at least three bankers (most probably more) in three locations busy for at least 45 minutes.

then there is the army of beancounters sitting in the back-offices recording each and every of the daily transactions, a number which must be staggering³ not to forget the compliance departments which were inflated during the last years, approving account openings and taking a look at every trade searching for money laundering, transfers to al-Qaeda or other illegal activities.

[craigt3365]

Midas, aren't you a transplanted Limey to Oz? Why are you so transfixed with what's going on in Yankee land? We'll land on our feet, as always. Chill out. Or, at least worry about what happens when natural resources run out down under....

why......? here is why ..... very creepy

President Obama May Get Power to Shut Down Internet Without Any Court oversight

http://www.infiniteunknown.net/2011/01/27/president-obama-may-get-power-to-shut-down-internet-without-any-court-oversight/

And this could be a good thing:

http://www.cbsnews.com/8301-501465_162-20029302-501465.html

"We're not trying to mandate any requirements for the entire Internet, the entire Internet backbone," said Brandon Milhorn, Republican staff director and counsel for the committee.

Instead, Milhorn said at a conference in Washington, D.C., the point of the proposal is to assert governmental control only over those "crucial components that form our nation's critical infrastructure."

...

For their part, Lieberman and Collins say the president already has "nearly unchecked authority" to control Internet companies. A 1934 law (PDF) creating the Federal Communications Commission says that in wartime, or if a "state of public peril or disaster or other national emergency" exists, the president may "authorize the use or control of any...station or device."

Nothing new here...no conspiracy theories, please. :jap:

[midas]

no wonder the banksters have never been prosecuted

Whistleblower Claims Massive Pattern Of Document Destruction At The SEC

" Some of the records that were allegedly destroyed involve Goldman Sachs, Bank of America, Wells Fargo, Lehman Brothers, Deutsche Bank, SAC Capital and Madoff. "

http://www.businessinsider.com/sec-attorney-claims-the-agency-destroyed-thousands-of-investigations-involving-banks-hedge-funds-2011-8

[12DrinkMore]

Blame it on the Chinese?

If Chinese imports rise in price through the Yuan, or Chinese inflation is imported this will cause rampant inflation in the States?

65% of all consumer goods in States are Chinese imports?

Maybe the real story is not quite what you expect.....

From the San Francisco FED comes the following paper.

http://www.frbsf.org.../el2011-25.html

Surprise Number One

Although globalization is widely recognized these days, the U.S. economy actually remains relatively closed. The vast majority of goods and services sold in the United States is produced here. In 2010, imports were about 16% of U.S. GDP. Imports from China amounted to 2.5% of GDP

Surprise Number Two

Thus, 36% of the price U.S. consumers pay for imported goods actually goes to U.S. companies and workers. This U.S. fraction is much higher for imports from China. Whereas goods labeled "Made in China" make up 2.7% of U.S. consumer spending, only 1.2% actually reflects the cost of the imported goods. Thus, on average, of every dollar spent on an item labeled "Made in China," 55 cents go for services produced in the United States. In other words, the U.S. content of "Made in China" is about 55%. The fact that the U.S. content of Chinese goods is much higher than for imports as a whole is mainly due to higher retail and wholesale margins on consumer electronics and clothing than on most other goods and services.

Surprise Number Three

China's 2011 inflation rate is close to 5%. If Chinese exporters were to pass through all their domestic inflation to the prices of goods they sell in the United States, the PCE price index (PCEPI) would only increase by 1.9% of this 5%, reflecting the Chinese share of U.S. consumer goods and services. That would equal a 0.1 percentage point increase in the PCEPI.

Bonus Surprise Number Four

In 2009, it cost about $179 in China to produce an iPhone, which sold in the United States for about $500. Thus, $179 of the U.S. retail cost consisted of Chinese imported content. However, only $6.50 was actually due to assembly costs in China. The other $172.50 reflected costs of parts produced in other countries, including $10.75 for parts made in the United States

They may not have been surprises for you, but surely the effect of China on the economy of the US has been vastly overstated?

[craigt3365]

Very interesting information.

[Naam]

...but surely the effect of China on the economy of the US has been vastly overstated?[/font][/color]

with what better scapegoat can those who failed come up than the "commies" in China and their "illgotten" economic progress?

[Naam]

no wonder the banksters have never been prosecuted

yesterday's market rout was mainly blamed on Morgan Stanley's warning of a global and especially U.S. recession around the corner. it would be interesting to know how many shorts MS placed in the markets before making that statement. if that is not closely connected to insider trading then i don't know what is insider trading.

personally i am not complaining. i'd like the downtrend to continue. perhaps it's bottom fishing time soon. :jap:

[cloudhopper]

This is a very interesting fundamental long term overview, and events since it was written seem to give it even more credence IMO.

http://willanystand.blogspot.com/2009/11/when-owing-money-means-nothing-and.html

[churchill]

Ben's way out ?

The upcoming expansion of US bank credit

http://www.financeandeconomics.org/Articles%20archive/2011.08.17%20Bank%20Credit%20Repo.htm

Edited August 19, 2011 by churchill

[ronz28]

I don't see a resolution to the financial crisis but the usual and customary seasonal market rally may turn markets around in most sectors in October. The usual September washout may have arrived early this year but the bond market's extremely low yields indicate people fear stock markets could go lower still.

[cloudhopper]

The upcoming expansion of US bank credit

http://www.financean...edit%20Repo.htm

Well I don't share the optimism of the author's plan to prevent deflation.

1) It assumes the Fed can keep interest rates near zero for two years regardless of what bond vigilantes might think, and doesn't consider what happens next.

2) He completely neglects to mention how all this new debt he proposes would be serviced.

The banks are going to need every penny of their excess reserves to recapitalize their bad debt when the time comes they are forced to liquidate it.

[lannarebirth]

...but surely the effect of China on the economy of the US has been vastly overstated?[/font][/color]

with what better scapegoat can those who failed come up than the "commies" in China and their "illgotten" economic progress?

I wouldn't say it is "illgotten" but I would say it is largely attributable to foreign investment. Nixon and Chou En-lai are the architects of China's ascendence. That said if China disappeared off the face of the Earth tomorrow the US would experience a year long supply hiccup and then go on as if nothing had ever happened.

[lannarebirth]

no wonder the banksters have never been prosecuted

yesterday's market rout was mainly blamed on Morgan Stanley's warning of a global and especially U.S. recession around the corner. it would be interesting to know how many shorts MS placed in the markets before making that statement. if that is not closely connected to insider trading then i don't know what is insider trading.

personally i am not complaining. i'd like the downtrend to continue. perhaps it's bottom fishing time soon. :jap:

It used to be an article of faith that a Merril Lynch downgrade was a buy signal. Often times the market would plunge, bottom and set an intermediate term low that very day. Might see 1050 on this run, but I'd prefer to see 8** sometime in the fall. Long bond has broken out.

[midas]

no wonder the banksters have never been prosecuted

yesterday's market rout was mainly blamed on Morgan Stanley's warning of a global and especially U.S. recession around the corner. it would be interesting to know how many shorts MS placed in the markets before making that statement. if that is not closely connected to insider trading then i don't know what is insider trading.

personally i am not complaining. i'd like the downtrend to continue. perhaps it's bottom fishing time soon. :jap:

It used to be an article of faith that a Merril Lynch downgrade was a buy signal. Often times the market would plunge, bottom and set an intermediate term low that very day. Might see 1050 on this run, but I'd prefer to see 8** sometime in the fall. Long bond has broken out.

yes but just placing shorts is so " trivial " .....

What you really want is to be dictating to TPTB what you want them to do for you on a permanent basis

Exclusive: Goldman Sachs VP Changed His Name, Now Advances Goldman Lobbying Interests As Top Staffer To Darrell Issa

" Has Rep. Darrell Issa (R-CA) turned the House Oversight Committee into a bank lobbying firm with the power to subpoena and pressure government regulators? ThinkProgress has found that a Goldman Sachs vice president changed his name, then later went to work for Issa to coordinate his effort to thwart regulations that affect Goldman Sachs’ bottom line."

http://thinkprogress.org/politics/2011/08/18/298485/exclusive-goldman-sachs-vp-changed-his-name-now-advances-goldman-lobbying-interests-as-a-top-staffer-to-darrell-issa/

Edited August 19, 2011 by midas

[cloudhopper]

That's interesting. I have been characterizing the US government of the last few decades as fascist but the state isn't controlling finance and industry to further its ends after all, it's the really the other way around. Has there ever been a corporatist regulatory-captured government like this before? Not very sustainable IMO.

[midas]

That's interesting. I have been characterizing the US government of the last few decades as fascist but the state isn't controlling finance and industry to further its ends after all, it's the really the other way around. Has there ever been a corporatist regulatory-captured government like this before? Not very sustainable IMO.

With this revelation all of the so-called " representatives " no matter whichever side of the political aisle

they sit just appear to be the same now............not a blind bit of difference between any of them

Edited August 19, 2011 by midas

[12DrinkMore]

Oh the waste, the waste.

Here's an old article from 2008.

http://mondediplo.com/2008/02/05military

Well, maybe now its about time to reign in the Great US Military Budget?

[manarak]

no wonder the banksters have never been prosecuted

yesterday's market rout was mainly blamed on Morgan Stanley's warning of a global and especially U.S. recession around the corner. it would be interesting to know how many shorts MS placed in the markets before making that statement. if that is not closely connected to insider trading then i don't know what is insider trading.

personally i am not complaining. i'd like the downtrend to continue. perhaps it's bottom fishing time soon. :jap:

Actually, according to SEC nomenclature, that would rather fall under "market manipulation"

(I am a former trader, I traded all products worldwide and specifically licensed for DTB/EUREX, XETRA, SWX and VIRT-X, these were the names of these markets at that time).

Edited August 19, 2011 by manarak

[cloudhopper]

More rot - http://www.businessinsider.com/moodys-analyst-conflicts-corruption-and-greed-2011-8

[midas]

Midas, aren't you a transplanted Limey to Oz? Why are you so transfixed with what's going on in Yankee land? We'll land on our feet, as always. Chill out. Or, at least worry about what happens when natural resources run out down under....

Actually JimGant I'm surprised you even asked the question USA has chosen to style itself

as the leader of the free world since the end of World War II. yes I am watching developments in USA intensely

because if your country loses this freedom how can any other country on earth realistically expect to enjoy anything better?

Buy a Gun

http://www.taipanpublishinggroup.com/tpg/taipan-daily/taipan-daily-081811.html?sub=TD&o=438224&s=441612&u=48412125&l=298798&r=Milo

Edited August 20, 2011 by midas

[flying]

Buy a Gun

Check & dont forget the ammo

[midas]

Has there ever been a corporatist regulatory-captured government like this before?

well here you go.............. it couldn't possibly be any clearer than this

It is redistribution of wealth............ from the sheeple to the politicians

The Video Congress Does Not Want You To See

Edited August 20, 2011 by midas

[Naam]

Buy a Gun

Check & dont forget the ammo

equally important:

[flying]

equally important:

:lol:

Better get a bum washer too

[12DrinkMore]

equally important:

:lol:

Better get a bum washer too

Air filter would be handy.

[churchill]

No surprises they cannot agree - will never agree - so a split is coming North/South .. with France in the South ?

European leaders split over solution to euro debt crisis

http://www.irishtimes.com/newspaper/frontpage/2011/0820/1224302760504.html

[manarak]

Buy a Gun

Check & dont forget the ammo

equally important:

looking forward to visiting your cellar :-)

I'll bring some Bretzeln