Financial Crisis

[AlexLah]

Brilliant guy this Justin!

No wonder he is an "Investment Director"

Gosh, we need a growing demand but where will it come from he is asking...........

Oi oi oi oi!

[12DrinkMore]

Are we heading towards hyperinflation?

Well, "maybe" seems to be the answer, and according to this article it depends on how the printed money is used. After reading through it, I can see the logic. If the newly created money is only used to bolster banks capital reserve rations so they can lend out money to be used to purchase stuff, then hyperinflation is possibly not on the way, but if the printed money is used to pay off huge speculative bets, as in the case of AIG/GS, then we are heading up Shit Creek. So the big question is, will the governments print money to pay off the immense credit default obligations, which are in the many many trillions, or will they come up with some other means of dealing with them?

http://www.globalresearch.ca/index.php?con...a&aid=13673

The article also enforces my opinion that short selling is essentially destructive to markets, causing unnecessary volatility and, in this particular analysis, the hyper inflationary death spiral in Germany. And please, I don't want to have another volley of posts about how beneficial short selling is. Been through that already. But if someone can argue that short selling was beneficial to the deutsche Mark, then go ahead.

[teletiger]

The article also enforces my opinion that short selling is essentially destructive to markets,

'And the wolves complain that china won't float her currency.

Read "Web of debt".....Emma brown.

Regards.

[12DrinkMore]

Well, here's a concept that will addle your brain. 5% negative interest rates. Yep, that's the suggestion of this countryman of Alex, Willem Buiter. Jeeze, this guy is

Professor of European Political Economy, London School of Economics and Political Science; former chief economist of the EBRD, former external member of the MPC; adviser to international organisations, governments, central banks and private financial institutions.

So he carries a lot of weight around. Is it any wonder that the MPC under Brown's delusions has messed up the economy with advice like this? And read through how he wants to control YOUR finances. Alex, can't you get him committed to a loony asylum asap.

http://blogs.ft.com/maverecon/2009/05/nega...-bank-near-you/

and here is a blog

http://ftalphaville.ft.com/blog/2009/05/20...dbye-banknotes/

I'm off to check out his website

http://www.nber.org/~wbuiter

Maybe there is something worth reading.

[12DrinkMore]

The article also enforces my opinion that short selling is essentially destructive to markets,

'And the wolves complain that china won't float her currency.

Read "Web of debt".....Emma brown.

Regards.

Ellen Brown, but thanks for the pointer, I'm off to see/hear what she has to say.

[teletiger]

"I may be gone for some time".

Regards.

[AlexLah]

Mmmmmmmmm......yeah dear old Willem Buiter, at least he provides lot's of reading material with his views.

You know you can have as many titles and degrees and whatever highly regarded positions as you want, also he did not see/warn against what was coming.

It is funny I remember a discussion I had with some kind of professor in chemistry and I invited him to do an explanation about something during a seminar I had organised. I asked him to explain something in simple easy to understand terms perhaps some daily life examples. He could not and got lost in small details and if's and if not's (sorry for the bad English).

There is this whole debate about if hyper inflation will occur or not as the public is constantly confronted with parallels to the Weimar situation including frightening pictures of people lining up for a bit of soup and offering their services for food.

Ask yourself:

Are those trillions of Dollars being printed or digitally added?

If printed how are those Dollars going to be released in the US market?

Are those extra Dollars perhaps being send outside the US where they can be used to settle trades, like oil purchases for example?

Why have yields on bonds and stuff almost doubled since December 2008?

You can add many more if you wish, bottom line is that when the amount of Dollars available in the system of physical money is not increased by at least 20% or more hyper inflation is not going to happen. Think about it, many people lost their jobs so there is less money to spend and less income from taxes. Wages are not increasing and I believe people will bid for the lowest wage in order to at least have a job when there are 50+ candidates or more for one job.

New houses (In the US) are being demolished and others are sold for less then 20.000 USD in areas that are almost deserted.

The military industry is making good profits as bombs that cost 10 million a piece are used to destroy bridges (and kill innocent people) overseas which later will be rebuild by private company's/contractors that are registered in tax havens which in turn have shareholders that are in powerful positions.

As long as the majority of people agree that pieces of paper with a funny print on it represent a value, nothing will change, the only thing that will change is which piece of paper will be regarded as the most valuable, and which bubble is next.

[teletiger]

Alex, all your questions are answered in "Web of debt". Fed-speak is deciphered. I'm not an agent. Available on bit-torrent. (allegedly)

Regards.

[flying]

Alex, all your questions are answered in "Web of debt". Fed-speak is deciphered. I'm not an agent. Available on bit-torrent. (allegedly)

Regards.

Yes it is in pdf form thanks gonna read it.....soon.....jeez 545 pages...ouch

Edited May 21, 2009 by flying

[flying]

Another bank bites the dust today in USA

Federal regulators have closed BankUnited, a Florida bank with $13.1B in total assets, saying it was 'critically undercapitalized.'

http://money.cnn.com/

[cloudhopper]

Fascism coming soon to a business near you (in the US at least)

http://www.financialarmageddon.com/2009/05...na-repubic.html

[flying]

http://www.cnbc.com/id/15840232?video=1128608144&play=1

Want to see something funny/crazy? Jeff Macke

This is what it looks like when somebody throws their hands up.

Seems like he spent the morning talking to the Auto guys & finally figures out

its all just BS

Especially funny that the other two guys are idiots calling the bottom & saying the stress test proves we are fine blah blah baa baa baaaaaaaa

Either that or drugs?

Edited May 22, 2009 by flying

[midas]

http://www.cnbc.com/id/15840232?video=1128608144&play=1

Want to see something funny/crazy? Jeff Macke

This is what it looks like when somebody throws their hands up.

Seems like he spent the morning talking to the Auto guys & finally figures out

its all just BS

Especially funny that the other two guys are idiots calling the bottom & saying the stress test proves we are fine blah blah baa baa baaaaaaaa

Either that or drugs?

Flying,

I don't know about you but I regard everything that CNBC is now saying about the market's can be considered as

an " advertorial " in the best interests of General Electric their parent company. I never believed half of what

they said before-look at that Jim Cramer scam artist telling people to keep buying

Bear Stearns at that time. But now CNBC has become a blatant propaganda machine for the vested interests

of a few and genuine journalism has been abandoned. In a few weeks time they will begin a long campaign involving thousands

of features and stories plugging the new proposed public health system for the USA

and the main beneficiary of all this will be General Electric.

[flying]

Flying,

I don't know about you but I regard everything that CNBC is now saying about the market's can be considered as

an " advertorial "

Oh 100% agreed

I only use CNBC for their ticker in the mornings & turn the sound off.

I actually saw that Jeff link on another forum & thought it was so funny.

[midas]

hey Alistair Darling ! Get cracking you only have seven months left to fulfill your

forecast of growth starting in December

Beleaguered banks fail to boost level of lending

Bank lending to businesses and home-buyers remains weak and, on one measure, has fizzled out since the pickup in March, the Bank of England warned yesterday. It said that lending to large and small companies was weak, while spreads -- the cost of borrowing above base rate -- and fees continued to go up.

Mortgage lending had slowed further and was particularly expensive for borrowers with small deposits. Growth in unsecured lending was the slowest for 17 years.

http://business.timesonline.co.uk/tol/busi...icle6337629.ece

[12DrinkMore]

hey Alistair Darling ! Get cracking you only have seven months left to fulfill your

forecast of growth starting in December

Yep, I am pretty sure he will be eating his hat about his "unchangeable" forecasts.

I suppose it depends on how stupid the UK population is. If they haven't cottoned on by now that borrowing huge amounts to get on the crazy "housing ladder" and that releasing equity from their houses to fund holidays are not particularly sound financial moves, then just maybe Darling could come through. But this would only mean another even bigger crisis is surging over the horizon.

But hopefully a little bit of sense has been drummed into them, and taking "credit" will be seen as not such a good move. This will mean that the UK economy will move to a level where it is sustainable, with demand equalling what the population is earning, rather than bloated by fictitious fantasy rises in bricks and mortar assets.

[AlexLah]

Just for the record, I am expecting a few funny accidents/alleged suicides from some British MP's in the coming months.

Edit:

I was chatting with a few American guys today and they had no idea about what was going on apart from hearing that some people lost their jobs. Very interesting to see how those I chatted with were so dumbed down.

Edited May 23, 2009 by AlexLah

[midas]

Just for the record, I am expecting a few funny accidents/alleged suicides from some British MP's in the coming months.

Edit:

I was chatting with a few American guys today and they had no idea about what was going on apart from hearing that some people lost their jobs. Very interesting to see how those I chatted with were so dumbed down.

I only look at CNBC when Jay Leno is on because he's good

he had three people on in a quiz -I didn't believe how easy the

questions were but equally I couldn't believe some of the answers.............

One was " what is a biplane "?

one of the girls answered " a plane with 2 classes -first-class and second-class "

Edited May 23, 2009 by midas

[AlexLah]

That's a plane reserved for bisexuals right?

[flying]

Ladies and Gentlemen: the US Is Insolvent

"We are out of money." Barack Obama May 23, 2009

Does anyone get the feeling the markets will bleed on Tuesday when they re-open?

http://jessescrossroadscafe.blogspot.com/

[AlexLah]

Just print some more, and more and more and more.

The great US of America out of money, duh.

Buy Gold!

[midas]

Ladies and Gentlemen: the US Is Insolvent

"We are out of money." Barack Obama May 23, 2009

Does anyone get the feeling the markets will bleed on Tuesday when they re-open?

http://jessescrossroadscafe.blogspot.com/

OBAMA: Well, we are out of money now. We are operating in deep deficits, not caused by any decisions we've made on health care so far.

So we have a short-term problem and we also have a long-term problem. The short-term problem is dwarfed by the long-term problem. And the long-term problem is Medicaid and Medicare. If we don't reduce long-term health care inflation substantially, we can't get control of the deficit.

But surely another long-term problem is that America hasn't gone anything to rely on to drag itself out of the mess?

It produces so little today compared to Asian countries and it only ever had mega consumerism to keep the economy going anyway and how

can that be revived with so many jobs being lost every month?

[flying]

This is going to be interesting......

Obama openly says what anyone with common sense has known for quite some time: the US is broke, and will not be able to honor its financial and fiduciary obligations.

The question remains how the US restructures that debt and how big a haircut the debt holders will take.

20%? 30%? More like upwards of 50% at least in real terms.

And who are these debt holders?

Anyone who hold Treasury debt obligations and financial assets, from the Long Bond to the US Dollar, and assets guaranteed by the Federal Reserve and the Treasury.

Technically the debt will be serviced and the interest paid according to the terms of the agreements, with devalued US dollars.

The process will continue until the debt is restructured and the dollar is replaced with a new dollar. This may take some years.

But we are now in the endgame.

[midas]

This is going to be interesting......

Obama openly says what anyone with common sense has known for quite some time: the US is broke, and will not be able to honor its financial and fiduciary obligations.

Technically the debt will be serviced and the interest paid according to the terms of the agreements, with devalued US dollars.

The process will continue until the debt is restructured and the dollar is replaced with a new dollar. This may take some years.

But we are now in the endgame.

Yes I noticed that! I just interpreted that as a loose interpretation for " another currency " such as

the euro or the RNB.

I wouldn't dream of suggesting reference to a new dollar could mean a new world currency

because the conspiracy theory skeptics will start screaming

[AlexLah]

Further up in the interview Oboemoe states that by reducing the cost of healthcare by 1.5%, they will be able to save 2 Trillion USD.

Uuuuuuuuuuuur, the cost of healthcare now is about 2.4 Trillion a year the the US.

Naaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaam!!!!!!!!!!!

Could you please scientifically explain this calculation?

[flying]

Further up in the interview Oboemoe states that by reducing the cost of healthcare by 1.5%, they will be able to save 2 Trillion USD.

Could you please scientifically explain this calculation?

Perhaps he is thinking along the lines of Gov Arnie the Terminator over in Kalifornia

http://latimesblogs.latimes.com/lanow/2009...udent-aid-.html

[midas]

Further up in the interview Oboemoe states that by reducing the cost of healthcare by 1.5%, they will be able to save 2 Trillion USD.

Could you please scientifically explain this calculation?

Perhaps he is thinking along the lines of Gov Arnie the Terminator over in Kalifornia

http://latimesblogs.latimes.com/lanow/2009...udent-aid-.html

So will we see start seeing the beaches of Malibu and Santa Monica strewn with cardboard boxes

and the bodies of homeless people and families?

[AlexLah]

No laaaaaah, you already forgot the Fema camps?

Good Obama is going to cut the healthcare cost, US is the most drugged nation in the world, perhaps when cutting on the medicines finally some people will come out of their trance. Spending about 17% of GDP on healthcare and not even everyone is insured. Have a look at Germany for example there it is I think something like 10% and everyone is insured. 60 Billion a year are fraudulent claims, maybe he can start there?

[churchill]

I was going to transfer some sterling to Baht tomorrow - I think I'll wait a couple of days now !

[midas]

Ladies and Gentlemen: the US Is Insolvent

"We are out of money." Barack Obama May 23, 2009

Does anyone get the feeling the markets will bleed on Tuesday when they re-open?

http://jessescrossroadscafe.blogspot.com/

Well this statement by Obama was covered on television this afternoon and then they interviewed this guy Gerald Celente.

He seems to have been right on so many issues in the past and we only have to wait

until 2012 to see if he is right about this in the USA. The scary part is you can start to see

the shoots of some of these things already

"There will be a revolution in this country," he said. "It's not going to come yet, but it's going to come down the line and we're going to see a third party and this was the catalyst for it: the takeover of Washington, D. C., in broad daylight by Wall Street in this bloodless coup. And it will happen as conditions continue to worsen." "The first thing to do is organize with tax revolts. That's going to be the big one because people can't afford to pay more school tax, property tax, any kind of tax. You're going to start seeing those kinds of protests start to develop."

"It's going to be very bleak. Very sad. And there is going to be a lot of homeless, the likes of which we have never seen before. Tent cities are already sprouting up around the country and we're going to see many more."

"We're going to start seeing huge areas of vacant real estate and squatters living in them as well. It's going to be a picture the likes of which Americans are not going to be used to. It's going to come as a shock and with it, there's going to be a lot of crime. And the crime is going to be a lot worse than it was before because in the last 1929 Depression, people's minds weren't wrecked on all these modern drugs -- over-the-counter drugs, or crystal meth or whatever it might be. So, you have a huge underclass of very desperate people with their minds chemically blown beyond anybody's comprehension."

http://geraldcelentechannel.blogspot.com/2...food-riots.html