Vanguard News Network
VNN Media
VNN Digital Library
VNN Reader Mail
VNN Broadcasts

Old October 22nd, 2008 #141
Hugo Böse
Jeunesse Dorée
 
Hugo Böse's Avatar
 
Join Date: Jan 2004
Location: Four Seasons Jalalabad
Posts: 8,590
Hugo Böse
Default Dow loss accelerates down more than 600 points

Dow loss accelerates

Blue-chip indicator down more than 600 points as weak earnings, slumping oil and gold prices add to recession fears.

http://money.cnn.com/2008/10/22/mark...ion=2008102215

Get a load of the gold price, 721 as of this writing.

Nothing is behaving the way one would expect, I would never have believed that the dollar would strengthen under these circumstances.
__________________
_______
Political correctness is an intellectual gulag.
 
Old October 22nd, 2008 #142
Bassanio
Hath not a Goy eyes?
 
Bassanio's Avatar
 
Join Date: Dec 2007
Location: Venice
Posts: 4,287
Blog Entries: 6
Bassanio
Default

I noticed that. I just bought some bullion the other day as well. And I bought silver a few weeks ago when it was at $10.70.

I feel sorry for the people who bought gold at $900+ and silver at $15+

I'm confident that it will go back up, but the question is how much more will it first go down.

Someone suggested that the dollar is being pumped because the Kike is planning something big (either an announcement or an event) in the coming weeks.
__________________
The Goy cries out in ecstasy as the Jew strikes him.
 
Old October 22nd, 2008 #143
Peer Fischer
Senior Member
 
Peer Fischer's Avatar
 
Join Date: Dec 2006
Posts: 4,881
Peer Fischer
Default

Quote:
Originally Posted by Right is Right View Post
Nothing is behaving the way one would expect, I would never have believed that the dollar would strengthen under these circumstances.
Of course it would. We're in a recessionary environment characterized by deflation, not inflation. The Fed may be printing bucks but not at a high enough rate yet to create an inflationary situation. Also, other countries and the EU are in a worse position which makes the greenback stronger in comparison. Currency value is measured only in terms of other currencies for exchange.

So, cash is king, assets and commodities are tanking. Hang onto your cash for dear life. Get rid of debt, as the increased value of the dollar will make it a heavier millstone to carry.
 
Old October 22nd, 2008 #144
Joe_J.
Radio active
 
Joe_J.'s Avatar
 
Join Date: Jul 2005
Location: Gone to work on the lemming sites against Big Jew.
Posts: 9,439
Blog Entries: 2
Joe_J.
Default

The asian markets are in a race to the bottom right now. Nikkei down 520 ( and counting) (6%).

Also, good reading:

The Stark Choice Now Facing America

America, and Americans face a stark decision - and a choice that must be made now.
Not next month at the polls, not next week.
Today.
I have been writing on this subject, petitioning Congress, and both calling and faxing Congress - and you - for the last year and a half.
We now sit literally days away, with a high probability, of a credit market "dislocation" that will change American finance and decimate the stock market.
That is, worse - far worse - than what has happened thus far.
Try on for size 2-3,000 points down on the Dow from here. 25% more than has been lost thus far, more-or-less "all at once." The probability of this event is now in excess of 70% - within the next few days to two weeks.
The Politicians know this.
They were promised that the market would not blow up if they passed Paulson's and Bernanke's bill.
They were lied to, and the first "blowup" happened.
You, the people, were promised that passing this "stabilization" bill was the right thing to do too.
You were lied to.
Now we are sitting on the edge of the second blowup - "The Big One."
Among other things, today we learned that The Fed has lost control of the Effective Fed Funds Rate - their own overnight lending rate. They were forced to change their interest rate on reserves in order to try to get it back under control - and there is no reason to believe their efforts will be effective.
The truth is that our nation, and indeed the world, has too much debt for its ability to earn income and has had since 1968. As this became apparent to the people at The Federal Reserve and Treasury, in the 1980s starting with Alan Greenspan, interest rates were artificially kept low for a long period of time to encourage you and others to go into that debt - debt you and these firms cannot possibly repay.
This is why we had the crash in 1987, why LTCM blew up in the 1990s, why we had an Internet Bubble and now why we had a Housing Bubble.
All of these bubbles were intentionally created by The Fed, Treasury and Wall Street Banks to keep the charade alive that you could take on more and more debt and they could make more and more money.
We are now out of bubbles and ability to support bubbles, and America (and the world, in fact) is out of the ability to support more debt.
We are now borrowing money to cover up the fact that millions of Americans and tens of thousands of companies are bankrupt, and the banks and other institutions that loaned them money are likewise bankrupt, as the people who owe them that money can't and never will be able to pay.
The people who in turn loan America the money it needs to operate - over $2 billion a day - have become aware of this fact.
This is very bad, because nobody will loan money to someone forever when they have no reasonable belief that they will ever be paid back.
There are only two options remaining for America, and we as Americans, and our politicians, must choose one of these two paths.
Neither path is easy.
Neither path is pain-free.
The path that will lead us to where we can prosper involves a great deal of short-term pain. It involves forcing all of the bad debt - perhaps your mortgage, the bad corporate debt, the "Ponzi-Scheme" style debt that has been layered up one on top of another - out into the open and forcing it to default.
On purpose.
This means that if you are underwater on your home, you will lose it and your credit will be destroyed for a few years. It means you may have to file for bankruptcy. It means a great deal of short term pain if you are in this position. It means that companies that have taken on too much debt will be forced to either pay down what they can, or go bankrupt if they cannot.
This path will result in higher unemployment for a time, it will result in lower standards of living. You will not be able to spend money you do not have, and neither will our government. Both the government and we the people will be forced to live within our means.
The second path is for Ben Bernanke, Henry Paulson our government and you to attempt to do what we have been doing.
That is, to borrow more money to pay the interest on money we have already borrowed. To refuse to accept that those who borrowed too much, and who can't pay, must declare that fact and face the potential bankruptcy that comes from being too far in debt and unable to make good on obligations.
This is now a critical matter for our nation, because our nation's political leaders have chosen to take the private debt of companies and individuals and attempt to guarantee it with the credit of the United States.
However, The United States is just as broke as we are individually - in fact, more so.
Treasury will have to issue three trillion dollars of new debt over the next 12 months in an attempt to make this work. But Treasury has been using very short-term debt - mostly four week and 13 week "bills", to fund the existing debt, because they are cheaper. As such the total amount of these auctions could easily reach five trillion dollars over the next 12 months.
Already, Treasury is issuing more than $100 billion dollars in this debt a week, on average, including new issues and rollovers. This is about double the total amount of debt that foreigners (or US interests) hold in total, and we have barely begun to actually issue the debt necessary to make the "TARP" operate.
We are, in effect, borrowing to pay interest. If you have ever tried to do this personally, you know that doing so almost always leads to bankruptcy.
It will for us as a nation if we don't stop it now.
Our choice as citizens is to either accept that those of us who have taken on too much debt will and must go bankrupt, declaring our insolvency and settling what we can, whether we are an individual, a corporation, or even our nation, or whether we will continue to attempt the charade of printing up more and more debt (or money) in an attempt to cover it up.
We are very close to the point where more debt causes the GDP - that is, the totality of our nation's output - to contract instead of expand.
At the point that line is crossed, our nation's monetary and economic system will fail with disastrous consequences.
This is, effectively, what happened in Iceland, and it came almost without warning. The price of everything they import tripled overnight.
We as a nation must choose, and we must do it now.
Nobody wants to accept that they cannot have a new car if they can't put down 10 to 20% of the purchase price, and that they can't "roll over" the old balance into the new loan, but that doesn't make it not true. It is, in fact, true.
Nobody wants to accept that they really need to put 20% down on a house and that houses can't sell for more than 3x incomes, on average, but it is in fact true.
Nobody wants to accept that having college cost $200,000 for four years is obscene and that allowing our kids to graduate with that sort of debt is outrageous, but it is in fact true.
Your 401k has already been turned into a 201k because our government has decided to lie about the fact that dozens if not hundreds of banks and tens of thousands of businesses, not to mention millions of individual Americans, maybe even you, are in fact broke.
Not everyone, however, is broke - but everyone's 401k, 403b and IRA is being decimated, and if we do not act now, we will all - the broke and the prudent - suffer the consequences of trying to lie about the financial state of our nation's banking system, our nation's companies and our nation's families.
We may be days away from an international credit incident originating outside of the United States. Foreign nations, banks, and businesses have "levered up", or taken more risk, than we have. They too have chosen to lie.
As money has flowed from "not guaranteed and possibly lying" firms' debt to that which is guaranteed by the government, the government has seen necessary to guarantee more and more liars, lest further firms and types of debt fail. As each type of debt becomes guaranteed it "sucks the money" from the non-guaranteed, and within weeks or days The Fed is obligated to guarantee yet another type of debt, lest it collapse too. We now have general corporate debt blowing out to wide levels, which will soon shut off all new corporate borrowing - even for sound companies - because there is no reason to buy their debt when you can buy guaranteed debt of some other type.
The Federal Reserve, starting with the "TAF", now has an entire alphabet soup of "facilities" to guarantee various debts, and the FDIC has increased its coverage. In recent weeks The Fed's facilities have even been extended overseas via "swap lines" and various other charades - it is no longer just United States interests being backstopped, it now includes foreign banks as well.
All of this is for one purpose - to cover the fact that many of these businesses are broke - that is, to cover up the lying.
But as each lie is covered up, the market calls the bluff and forces yet another coverup. The Fed is now creating new facilities to the tune of hundreds of billions of dollars they do not have, effectively displacing private lending on a global scale, now operating with leverage of more than 40:1 - all so the lies do not have to be admitted to.
But with each new charade the spiral tightens at an increasing rate.
At some point the people who have lent all of these firms money will cease to be willing to do so because all debt will become equivalent to US Debt, and all of it will be considered "dangerous."
The people who loan us money - the oil producers, the Japanese and the Chinese - are able to do the same math I am.
They know the same facts I know, and you should know.
They know the same facts that Henry Paulson and Ben Bernanke know, but have not shared in an open and honest fashion with The American People - or with Congress.
We are on the cusp of this dislocation - and this realization - being forced upon us.
I believe Treasury has been attempting to "kick the can down the road" as is the usual pattern in Washington DC.
Unfortunately the can has filled up with cement and there is now a very high probability that instead of the can being able to be kicked down the road until next year after the elections the second-level dislocation - the "big one" - is going to happen within days.
It is my opinion that we must, at all costs, protect the borrowing ability of our government - the Treasury of The United States.
We must not use our government to protect the liars in American business, no matter whether they are banks, automakers, the local store owner or ordinary Americans.
If we are to get through the difficult economic times we are in and which lie ahead, we must guarantee that our government is able to borrow money at a competitive rate.
We must make sure that the government is not lumped in with the liars, lest the government's ability to borrow get cut off or become prohibitively expensive.
This decision to differentiate the government from the liars must be made now.
Our leaders must stand up and demand that Ben Bernanke and Hank Paulson stop backstopping the bankrupt.
We must withdraw the TARP and not allow $70 billion dollars of borrowed money to go to pay bonuses at major Wall Street banks - $70 billion dollars we do not have.
We must not allow this money to be used to run mergers and other corporate "raids."
We must stop Ben Bernanke from expanding his "alphabet soup" of lending facilities, and force those who are in fact bankrupt into the open, where the free market's solution - bankruptcy - awaits.
We must force home prices down so that you can truly afford to buy a house, not keep prices artificially high so that the banks and other lenders don't lose money.
We must recognize and admit that the debt merchants - the banks - are opposed to doing the right thing not because their opposition is good for America and it is to everyone's benefit that they be protected, but because by forcing hidden defaults into the open some of them will go broke, and all of them will, in the future, have far less business to compete for.
Once the bad debt has been forced from the system then and only then should Congress step in, if necessary, and charter new banks. Spin them off to the public in IPOs with the money was going to be used for the TARP - but only after we have restored the ability of America to use credit once again by defaulting the bad debt that currently exists.
If we do not make this choice, and make it now, those who have the money we are borrowing - the Chinese, the Saudis, The Japanese and others - will make this decision for us.
They will come to the conclusion that they will never be paid back.
At this point our way of life will be irretrievably altered.
Your 401k, which is now a 201k, will become a 101k or even a 51k. The DOW could fall to below 5,000 and the S&P 500 to 500 or less, with 20 years or more of gains wiped out.
You have already seen nearly half of your money disappear.
You could see another half disappear - within days.
That is a 75% loss from October 2007 values, and before you scoff at it, look at a chart of the Nasdaq from 2000 to 2003. Our entire stock market and economy have become just as farcical as the Nasdaq was from 1995-1999. I ran a company in the Internet space in the 1990s - I saw it all, and most of the firms that failed during the Tech Wreck were more honest than the banks and mortgage lenders during the housing bubble and to this day!
The day for we, as Americans, to make this decision has arrived.
We must do so today, not after the election and not in January.
We must tell Congress now that it is critical for them to protect America's credit as a nation, not the credit of banks, business who have done imprudent things, and even ordinary Americans who have done imprudent things, whether those imprudent things were done intentionally or not.
We must make clear that we understand this will not be an easy decision, or a painless one - but it is a necessary decision, it is our decision, and it is the decision we demand they enforce as our elected representatives.
Congress must "grow a pair" and stand up for Americans, here and now, today, telling the world that these liquidity facilities will not be permitted to continue, that banks and other firms who have concealed the true state of their finances will be closed and their executives jailed if they do not immediately confess, and that house price "supports" will and must be withdrawn, including the provision of "low down payment" and "high debt-to-income" loan options.
Congress must direct Ben Bernanke to either withdraw his "alphabet soup" or Congress must revoke The Fed's charter and replace The Fed with a monetary authority that will tell the truth and act with full transparency.
Treasury must be directed to cease implementation of the TARP and return all funds not yet spent to the general fund. The short-term cash management debt that Treasury has issued must be allowed to run down and not be rolled over so that the radical expansion of issue in the Treasury market ceases and in fact is reversed.
We must choose America.
You have seen, today, another five percent decline in the stock market, despite the claims that "credit is improving."
That claim is a lie.
Credit is not improving - it is being replaced by The Fed being the only issuer and guarantor of credit - an impossible situation that is ruinous to our nation and its prospects.
We face an imminent collapse of both stock and credit markets if we do not act, and act today.
To Congress: Is there not one statesman or woman who will stand for America and her people, not for the bankers and fraudsters on Wall Street who have given you millions in campaign contributions?
To The People: You were promised a solution, and you didn't get it. Are you going to sit on your hands while our nation's economy implodes?
Those are your choices, and you must make them today.
Choose wisely.
(I hope I'm wrong, but fear I'm not.....)
__________________
The average kwan is of such low quality that he'd shoot himself if he had any self awareness.
-Joe from Ohio
 
Old October 22nd, 2008 #145
Mike in Denver
Enkidu
 
Mike in Denver's Avatar
 
Join Date: Dec 2003
Location: Under the Panopticon.
Posts: 4,171
Mike in Denver
Default

I like people who make clear predictions that are to take place in the next few days. It makes it easy to check up on them. Particularly since none of his suggestions will be carried out by the Gov. or the Fed.


Quote from deathtozog:

"The asian markets are in a race to the bottom right now. Nikkei down 520 ( and counting) (6%). "

I just noticed this. The Asian markets tanked last night, and those that are open are tanking now. I just checked and Hong Kong and China were not yet open, but Japanese, Korean, Australian, New Zealand, and India are all way down.

DJIA and S & P 500 Futures are up a little, but I doubt that will last.

The only good thing: The Euro and British Pound are tanking, even against the US Dollar, so if you want to take that trip to Europe, it might be the time to do so.

Mike
__________________
You have to remember I live in Denver and some things are perfectly legal here that aren't where you live.

Last edited by Mike in Denver; October 22nd, 2008 at 08:11 PM.
 
Old October 22nd, 2008 #146
notmenomore
Senior Member
 
notmenomore's Avatar
 
Join Date: Nov 2006
Posts: 3,175
notmenomore
Default

Quote:
Originally Posted by deathtozog View Post
We face an imminent collapse of both stock and credit markets if we do not act, and act today.

To Congress: Is there not one statesman or woman who will stand for America and her people, not for the bankers and fraudsters on Wall Street who have given you millions in campaign contributions?
To The People: You were promised a solution, and you didn't get it. Are you going to sit on your hands while our nation's economy implodes?

...not quite sure exactly who this "we" is that runs through the blog, but:

as to Congress, no, there are no such statesmen and the people know it,

and,

as to The People, they will not sit on their hands. Rather, they will hold their hands in front of their eyes and hope that it will just go away.


The "our nation" thing is a fantasmagora. We have the Kwa which is NOT a nation. It is the Kwa, and the Kwa may well be facing its end-times.


Lead will be worth more than gold. (Does the blogger really think that 45 or 50 million niggers are going to peacefully "accept" bankruptcy, as he counsels?)


Military rule seems to be the only remaining option besides utter chaos.
__________________
No way out but through the jews.
 
Old October 23rd, 2008 #147
Joe_J.
Radio active
 
Joe_J.'s Avatar
 
Join Date: Jul 2005
Location: Gone to work on the lemming sites against Big Jew.
Posts: 9,439
Blog Entries: 2
Joe_J.
Default

Quote:
Originally Posted by notmenomore View Post
...not quite sure exactly who this "we" is that runs through the blog, but:

as to Congress, no, there are no such statesmen and the people know it,

and,

as to The People, they will not sit on their hands. Rather, they will hold their hands in front of their eyes and hope that it will just go away.


The "our nation" thing is a fantasmagora. We have the Kwa which is NOT a nation. It is the Kwa, and the Kwa may well be facing its end-times.


Lead will be worth more than gold. (Does the blogger really think that 45 or 50 million niggers are going to peacefully "accept" bankruptcy, as he counsels?)


Military rule seems to be the only remaining option besides utter chaos.
Check the link. The guy that writes this blog is very sharp with the markets, investing, etc. His problem is that he doesn't see the nature of the Kwa for what it is. He knows something is wrong but believes in the system still.
__________________
The average kwan is of such low quality that he'd shoot himself if he had any self awareness.
-Joe from Ohio
 
Old October 24th, 2008 #148
notmenomore
Senior Member
 
notmenomore's Avatar
 
Join Date: Nov 2006
Posts: 3,175
notmenomore
Default

Quote:
Originally Posted by deathtozog View Post
Check the link. The guy that writes this blog is very sharp with the markets, investing, etc. His problem is that he doesn't see the nature of the Kwa for what it is. He knows something is wrong but believes in the system still.

Agreed!

Excellent perception and understanding of the fiscal situation, but....

Even some organs of the MSM are now hinting at the true extent of the cataclysm awaiting when the derivative house of cards fully collapses.

As I see it, there really is no choice nor alternative. Even if the derivative contracts could be wiped clean by governmental fiat, such action would of necessity wreak total destruction of the entire financial structure presently existing. There's simply no backup system in place.


In the absence of the most brutal implementation of martial law only primitive individual local barter systems will be available. Mass starvation, epidemics and "Mad Max" scenatios are distinct possibilities.


In my area game is plentiful: much deer and turkey. My guess is that most of the game will be taken in the first few weeks after the supermarkets are gone. Life will become very, very cheap.
__________________
No way out but through the jews.

Last edited by notmenomore; October 24th, 2008 at 10:14 PM. Reason: fugged-ded-ubb
 
Old October 24th, 2008 #149
Alex Linder
Administrator
 
Join Date: Nov 2003
Posts: 45,375
Blog Entries: 34
Alex Linder
Default

[This from Arch...]

Alex,



Here is an excellent analysis of the economic problems in Europe during the 1930s. The “tragic history” referred to in the article is of course Hitler’s rise to power and his successful removal of Germany from the jew’s usurious banking system. This economic move of course precipitated WWII. The collusion of the banks is obvious in this article, but what is not obvious is the invisible hand pulling the levers. The House of Morgan (note the name, house of Morgan) was a Rothschild finical front. When J.P. Morgan died, the big question was what happened to all his money? At his death his estate was valued at around 60 million, a paltry sum in comparison to the amount of money he moved throughout the world during his life. Obviously Morgan sold his soul to the Rothschild devil/god and just as obviously it was Rothschild money Morgan was tasked with moving. After Morgan’s death, the House of Rothschild apparently felt the new leadership could not be trusted as they had trusted Morgan and so they quietly strangled the House of Morgan. The fact is, like government, the banks need people, but people don’t need banks. People have been convinced that banks and their middle men are a necessity to run this modern world but it is a lie. Banks are nothing more than money clearing houses and anyone who reads the history of banking will quickly find the need for banks was created by the vampires that profited from their existence. The fact is this “crises” is not a crises but a continuation of a methodical plan to bring down America to the same level as the rest of the jew owned and run slave nations. This is the final ploy in removing the remaining wealth from a dead nation’s hulk, already bled dry by the Jewish economic vampires. Like the other empires destroyed by the Jews, America will soon be little more than a northern version of Brazil or Argentina. I recently returned from Texas and I have now renamed Texas, “Mexico del Norte” in recognition of the dominate population of that state. Mexico Del Norte with El Presidente Obama. Already I feel a third world chill descending upon this decaying national corpse.



Regards,



Arch Stanton



Financial Crisis: Paulson Panics as UK, Germany find own solution



F. William Engdahl
Global Research
Sat, 18 Oct 2008 16:43 UTC

America's de facto Finance Czar, US Treasury Secretary Henry Paulson has reached for the panic button and made a dramatic 180-degree reversal of his financial bailout plan passed only days before. On September 23 in testimony before the US Congress, Paulson, former CEO of the politically influential Wall Street investment firm, Goldman Sachs, declared his adamant opposition to the idea of the US Government taking equity stakes in troubled major banks in order to provide them capital and stabilize the frozen interbank trading market. On October 13, that opposition to 'nationalization' collapsed. What happened to cause that sudden reverse is what interests us here. It shows the utter lack of coherency in the US financial elites over how to deal with their home-grown securitization of risk fiasco.

The Paulson plan was widely criticized among more sober US bankers and economists, including Paulson's predecessor as Treasury Secretary, Paul O'Neill who simply called the concept of using $700 billion taxpayer bailout fund to buy 'toxic debt' from banks, as 'crazy.' All critics agreed the Paulson approach was far the most costly model and far from guaranteed to solve the underlying problem - inadequate bank capitalization following hundreds of billions of dollars in sub-prime and other security losses.

Yet the Secretary adamantly refused to alter his plan, even after Congress rejected it in the first vote. He allowed non-related Democratic items to be glued on to his original TARP plan, a plan that gave the Treasury Secretary virtual dictatorial powers over the US finance and de facto the economy. It was referred to widely as 'the financial equivalent of the US Patriots Act.'

Then, on October 8 the unexpected took place. Gordon Brown, former British finance minister and now Prime Minister, facing a literal meltdown of the British banking system, on advice of senior staff of the Bank of England, swallowed his own opposition to bank nationalization and adopted an emergency nationalization scheme. He announced that the UK Treasury had made € 64 billion available to buy bank preferred shares in eight UK banks designated by the Government as strategic. The nationalization was to be partial but effective and included a €260 billion 'special liquidity scheme' of Treasury cash to inject into the frozen inter-bank market, consisting of UK Treasury bills in exchange for bank less liquid assets as collateral.

The relevance of 1931

The move was a replay of the dramatic decision by the British Government in 1931. At that time, Britain and members of the British Commonwealth 'broke the rules of the game' and unilaterally abandoned the international Gold Standard. In September 1931, after months of debate, the UK abandoned monetary orthodoxy and unilaterally left the Gold Standard it had rejoined in 1925.

Germany had preceded the UK, under far different circumstances, by some weeks in August 1931 by abandoning the Gold Standard.

Germany, under emergency rule without Parliament under Chancellor Brüning, faced a crisis in the wake of the French decision to punish the German-Austrian economic entente. France had precipitated a banking crisis in Austria's largest bank, the Vienna Credit-Anstalt.

The role of J.P. Morgan Bank in New York, the leading private creditor of the German banking system since the end of Hyperinflation in 1923, and the Morgan controlled New York Federal Reserve under Governor George L. Harrison, was instrumental in precipitating the German banking crisis of 1931.

As a condition for its stabilization loan to the Reichsbank, Harrison demanded the Reichsbank cease lending to German commercial banks. Under maximum duress, it did. The banks collapsed.

So long as it remained on the Gold Standard, a requirement of JP Morgan and the New York Federal Reserve, Germany had to prevent capital outflows and impose higher taxes and budget austerity to persuade international creditors of its credit worthiness. As German recession deepened, the government cut the social programs instituted after the war. It was the outbreak of the banking crisis in the summer of 1931 that made the German depression so severe. The collapse of the banks in central Europe had a major social, psychological and political impact. The rest became tragic history.

The United States, guided by Harrison and backed up by the monetary orthodoxy of President Herbert Hoover, held bitterly to the Gold Standard until March 1933 when newly inaugurated President Roosevelt left the Gold Standard. By then, the United States economy was deep in depression.

Paulson's Volte Face

This time around it was again England that led the break with the rules of a US financial game by swiftly nationalizing its top eight banks, starting with the Royal Bank of Scotland (RBS) on October 8, a Wednesday. By that Friday it was clear that Germany was also moving towards a national resolution of its banking problems, problems which originated in the US spread of Asset Backed Securities and Credit Default Swaps, an exotic new area of finance which had grown up in recent years in a totally unregulated area of bank-to-bank practice to a nominal size of some $68 trillion. The French Sarkozy Plan, a €300 to 400 billion 'common bailout fund' modelled loosely on the original Paulson Plan, was dead. German taxpayers would not pay for the excesses of French or Italian banks. It was a sea change in attitude across the EU away from a US-led global financial unity. The American Century faced catastrophe.

That was the point of Paulson's radical shift to what in the parlance of US radical free marketers was a bolt towards the dreaded 'S' word, socialisation of the banking system. According to my best European banking sources, had Paulson not taken radical new action at that point, as one City of London veteran banker expressed it, 'the US banks were in danger of extinction.'

On Monday October 13 in the US Treasury, Paulson convened an emergency meeting with the heads of the nine largest US banks. According to reports from participants, Paulson handed each person a one page document to sign that they would agree to sell their stock shares in part to the US Government in return for an emergency injection of $250 billions. Paulson told them they must all sign before leaving the room. Three hours and reportedly many acrimonious arguments later, all nine had signed in the largest Government intervention into the US banking system since the Great Depression.

According to insider accounts from bankers here I spoke with and in New York, it was precisely the decision by the UK, backed by a similar if not yet so detailed plan from the German authorities which forced Paulson's Volte Face.

After the fact, in a confirmation of how weak the new Federal Reserve Chairman, Ban Bernanke is in face of the domineering personality of Paulson, Bernanke mumbled to the press that he had 'all along' been in favor if the Government buying equity shares to recapitalize the banks. Why he refused to state that publicly before the Paulson Plan won the day is unclear, but it suggests the man Bush chose to succeed Alan Greenspan was chosen for his lability not his ability or his backbone.

San Francisco Federal Reserve President, Janet Yellen remarked as well, long after it had become clear that the US Administration's decision to let Lehman Brothers go bankrupt without Government assistance, had been a horrible miscalculation.

That Lehman Bros. bankruptcy on September 15, was the 'shock heard round the world,' which precipitated a global crisis in banking confidence resulting in the present situation. Whether Paulson and friends calculated the collapse would provide the basis to demand a US-crafted solution to the crisis remains unclear. What is clear, one of the chosen 'winners' in the present US banking reorganization, JP Morgan Chase, played a nasty role in the final push of Lehman Bros. into insolvency the Friday prior to Lehman's Monday declaration of insolvency. JP Morgan Chase had 'mysteriously' withheld a $19 billion transfer that Friday which would have averted the collapse of Lehman Bros. It was an eerie echo of the nasty role played in 1931 by the House of Morgan in relation, then, to the German and European banking crisis.

After 1931 the House of Morgan never again rose to the prominent role it had held. It is looking increasingly likely that the successor to the bank, JP Morgan, despite the pretensions of its head, Jamie Dimon, to invincibility, may be far more modest.
 
Old October 24th, 2008 #150
notmenomore
Senior Member
 
notmenomore's Avatar
 
Join Date: Nov 2006
Posts: 3,175
notmenomore
Default

Quote:
Originally Posted by Alex Linder View Post

[This from Arch...]
this "crises" is not a crises but a continuation of a methodical plan to bring down America to the same level as the rest of the jew owned and run slave nations. This is the final ploy in removing the remaining wealth from a dead nation’s hulk, already bled dry by the Jewish economic vampires. Like the other empires destroyed by the Jews, America will soon be little more than a northern version of Brazil or Argentina. I recently returned from Texas and I have now renamed Texas, "Mexico del Norte" in recognition of the dominate population of that state. Mexico Del Norte with El Presidente Obama. Already I feel a third world chill descending upon this decaying national corpse.



Good review of the similarities between current events and the happenings of the 1930s.

A distinction, however, should be made between the fractional reserve banking of the earlier era - viz-aviz the gold standard - and the new model of fractional reserve of risk securitization - "derivatives." Just as the banker of old could lend out 100s of times more funds than he actually had on deposit, so too can a modern AIG "insure" exponential quantities of "risk" of the default of [worthless] CDOs without actually possessing either any capital or reserves to actually pay out on losses. The problem, of course, lies in the exponentially larger amounts in play and the fact that the losses have now appeared at the claims desk just as the customers of old appeared at the teller’s window to withdraw their deposited funds. In both cases the fraud is revealed, and the house collapses.

As Arch correctly notes: "This is the final ploy in removing the remaining wealth from a dead nation’s hulk, already bled dry by the Jewish economic vampires."

Our situation now will be to plot a course of survival in the selfsame "hulk."

In the thirties (and even up until today) the Brazils and Argentinas were able to "hitch a ride" with the vastly more wealthy Northern European nations, who up until then had been stressed, but not entirely eviscerated. Today, however, the European powers (to include the Kwa) are themselves facing economic obliteration. When Arch concludes, "Already I feel a third world chill descending upon this decaying national corpse," he is being all too optimistic. The "third world" has never existed as anything other than a comparison with the "First World," the world of the great industrial White European powers. If these powers fail beyond repair, there may well remain insufficient industrial and economic resources to even approximate "third world" conditions: the descent may take us all far, far below what we today call the "third world."
__________________
__________________
No way out but through the jews.
 
Old October 26th, 2008 #151
Joe_J.
Radio active
 
Joe_J.'s Avatar
 
Join Date: Jul 2005
Location: Gone to work on the lemming sites against Big Jew.
Posts: 9,439
Blog Entries: 2
Joe_J.
Default

http://business.timesonline.co.uk/to...cle5004029.ece


Quote:
From The Times

October 24, 2008


Panic over hedge funds 'could close markets'


Miles Costello and Helen Power

Regulators could be forced to shut down markets for as long as a fortnight in order to stanch the panic beginning to beset the hedge fund industry, a leading expert predicted yesterday.

Nouriel Roubini, a professor at New York University, told a London conference that hundreds of hedge funds are poised to fail as frantic investors rush to redeem their assets and force managers into a fire sale of assets. He said: “We've reached a situation of sheer panic. Don't be surprised if policymakers need to close down markets for a week or two in coming days.”

Jon Moulton, the private equity investor behind Alchemy Partners, forecast a tidal wave of hedge fund collapses in the next three months. “We estimate 60 per cent of the capacity of UK hedge funds will go this year, through bankruptcies and redemptions,” Mr Moulton told The Times.

Professor Roubini is a former senior adviser to the US Treasury. A well-known bear on economic prospects for the world economy, he predicted in February that a catastrophic financial meltdown was on the way. “This is the worst financial crisis in the US, Europe and now emerging markets that we've seen in a long time,” he told the Hedge 2008 London conference.

There are widespread predictions of calamity in the hedge fund sector, which has been thrown into crisis by the collapse of Lehman Brothers, the Wall Street investment bank, and the ensuing turmoil in world markets.

Andrew Umbers, the chief executive of Evolution Securities, told The Times last night that as much as 25 per cent could be wiped off the value of hedge fund assets under management as a result of the combined effects of performance losses and redemption calls this year. Mr Umbers has predicted that one hedge fund in four will fail by the end of the year. If right, his forecast could mean that hedge funds have lost up to $500 billion (£310 billion) of assets over the full year, having peaked with investments at $2 trillion.

Emmanuel Roman, the co-chief executive of GLG Partners, the New York-based hedge fund, joined other experts yesterday in predicting that hundreds of hedge funds will fail before the year end. “In a fairly Darwinian manner, many hedge funds will simply disappear,” Mr Roman told the conference. He said that regulators would move to impose order on the industry.

Performance at hedge funds has plummeted this year as unprecedented market turbulence and unpredictable changes in economic forecasts, particularly involving inflation, have placed many investors on the wrong side of big directional bets. Investors redeemed about $31 billion of hedge fund assets globally during the three months to the end of September and a further $179 billion was wiped off the value of their holdings by falling markets, according to Hedge Fund Research, the Chicago-based research firm.

Hedge funds lost 4.6 per cent during September, according to EurekaHedge, another research firm, which said that the investment class was on course to post annual losses for the first time since 1998.

Several legendary funds have suffered heavily this year, including Toscafund, which is down 55 per cent for the year to date, and Citadel, which has lost an estimated 27 per cent for investors.
@Alex: Arch Stanton? LOL, the name of the grave in The Good, The Bad, The Ugly. A great movie directed by Italians instead of kikes.




__________________
The average kwan is of such low quality that he'd shoot himself if he had any self awareness.
-Joe from Ohio
 
Old October 26th, 2008 #152
notmenomore
Senior Member
 
notmenomore's Avatar
 
Join Date: Nov 2006
Posts: 3,175
notmenomore
Default

Quote:

“We've reached a situation of sheer panic. Don't be surprised if policymakers need to close down markets for a week or two in coming days.”



Might not be a bad idea, but once the markets re-open the same chasm will still be there.

I've considered for a number of weeks now that the main driver of the stock market collapse has been redemptions from funds. The only way fund managers can keep their funds open at all is to sell, so they are having to sell into a crashing market - an activity that spins the wheels faster on the race to the bottom.
__________________
No way out but through the jews.
 
Old October 26th, 2008 #153
Joe_J.
Radio active
 
Joe_J.'s Avatar
 
Join Date: Jul 2005
Location: Gone to work on the lemming sites against Big Jew.
Posts: 9,439
Blog Entries: 2
Joe_J.
Default

http://www.telegraph.co.uk/finance/c...-meltdown.html

Europe on the brink of currency crisis meltdown

The crisis in Hungary recalls the heady days of the UK’s expulsion from the ERM.

By Ambrose Evans-Pritchard
Last Updated: 10:52AM GMT 26 Oct 2008

Comments 45 | Comment on this article

The financial crisis spreading like wildfire across the former Soviet bloc threatens to set off a second and more dangerous banking crisis in Western Europe, tipping the whole Continent into a fully-fledged economic slump.

Currency pegs are being tested to destruction on the fringes of Europe’s monetary union in a traumatic upheaval that recalls the collapse of the Exchange Rate Mechanism in 1992.

“This is the biggest currency crisis the world has ever seen,” said Neil Mellor, a strategist at Bank of New York Mellon.

Experts fear the mayhem may soon trigger a chain reaction within the eurozone itself. The risk is a surge in capital flight from Austria – the country, as it happens, that set off the global banking collapse of May 1931 when Credit-Anstalt went down – and from a string of Club Med countries that rely on foreign funding to cover huge current account deficits.

The latest data from the Bank for International Settlements shows that Western European banks hold almost all the exposure to the emerging market bubble, now busting with spectacular effect.

They account for three-quarters of the total $4.7 trillion £2.96 trillion) in cross-border bank loans to Eastern Europe, Latin America and emerging Asia extended during the global credit boom – a sum that vastly exceeds the scale of both the US sub-prime and Alt-A debacles.

Europe has already had its first foretaste of what this may mean. Iceland’s demise has left them nursing likely losses of $74bn (£47bn). The Germans have lost $22bn.

Stephen Jen, currency chief at Morgan Stanley, says the emerging market crash is a vastly underestimated risk. It threatens to become “the second epicentre of the global financial crisis”, this time unfolding in Europe rather than America.

Austria’s bank exposure to emerging markets is equal to 85pc of GDP – with a heavy concentration in Hungary, Ukraine, and Serbia – all now queuing up (with Belarus) for rescue packages from the International Monetary Fund.

Exposure is 50pc of GDP for Switzerland, 25pc for Sweden, 24pc for the UK, and 23pc for Spain. The US figure is just 4pc. America is the staid old lady in this drama.

Amazingly, Spanish banks alone have lent $316bn to Latin America, almost twice the lending by all US banks combined ($172bn) to what was once the US backyard. Hence the growing doubts about the health of Spain’s financial system – already under stress from its own property crash – as Argentina spirals towards another default, and Brazil’s currency, bonds and stocks all go into freefall.

Broadly speaking, the US and Japan sat out the emerging market credit boom. The lending spree has been a European play – often using dollar balance sheets, adding another ugly twist as global “deleveraging” causes the dollar to rocket. Nowhere has this been more extreme than in the ex-Soviet bloc.

The region has borrowed $1.6 trillion in dollars, euros, and Swiss francs. A few dare-devil homeowners in Hungary and Latvia took out mortgages in Japanese yen. They have just suffered a 40pc rise in their debt since July. Nobody warned them what happens when the Japanese carry trade goes into brutal reverse, as it does when the cycle turns.

The IMF’s experts drafted a report two years ago – Asia 1996 and Eastern Europe 2006 – Déjà vu all over again? – warning that the region exhibited the most dangerous excesses in the world.

Inexplicably, the text was never published, though underground copies circulated. Little was done to cool credit growth, or to halt the fatal reliance on foreign capital. Last week, the silent authors had their moment of vindication as Eastern Europe went haywire.

Hungary stunned the markets by raising rates 3pc to 11.5pc in a last-ditch attempt to defend the forint’s currency peg in the ERM.

It is just blood in the water for hedge funds sharks, eyeing a long line of currency kills. “The economy is not strong enough to take it, so you know it is unsustainable,” said Simon Derrick, currency strategist at the Bank of New York Mellon.

Romania raised its overnight lending to 900pc to stem capital flight, recalling the near-crazed gestures by Scandinavia’s central banks in the final days of the 1992 ERM crisis – political moves that turned the Nordic banking crisis into a disaster.

Russia too is in the eye of the storm, despite its energy wealth – or because of it. The cost of insuring Russian sovereign debt through credit default swaps (CDS) surged to 1,200 basis points last week, higher than Iceland’s debt before Götterdammerung struck Reykjavik.

The markets no longer believe that the spending structure of the Russian state is viable as oil threatens to plunge below $60 a barrel. The foreign debt of the oligarchs ($530bn) has surpassed the country’s foreign reserves. Some $47bn has to be repaid over the next two months.

Traders are paying close attention as contagion moves from the periphery of the eurozone into the core. They are tracking the yield spreads between Italian and German 10-year bonds, the stress barometer of monetary union.

The spreads reached a post-EMU high of 93 last week. Nobody knows where the snapping point is, but anything above 100 would be viewed as a red alarm. The market took careful note on Friday that Portugal’s biggest banks, Millenium, BPI, and Banco Espirito Santo are preparing to take up the state’s emergency credit guarantees.

Hans Redeker, currency chief at BNP Paribas, says there is an imminent danger that East Europe’s currency pegs will be smashed unless the EU authorities wake up to the full gravity of the threat, and that in turn will trigger a dangerous crisis for EMU itself.

“The system is paralysed, and it is starting to look like Black Wednesday in 1992. I’m afraid this is going to have a very deflationary effect on the economy of Western Europe. It is almost guaranteed that euroland money supply is about to implode,” he said.

A grain of comfort for British readers: UK banks have almost no exposure to the ex-Communist bloc, except in Poland – one of the less vulnerable states.

The threat to Britain lies in emerging Asia, where banks have lent $329bn, almost as much as the Americans and Japanese combined. Whether you realise it or not, your pension fund is sunk in Vietnamese bonds and loans to Indian steel magnates. Didn’t they tell you?
__________________

__________________
The average kwan is of such low quality that he'd shoot himself if he had any self awareness.
-Joe from Ohio
 
Old October 27th, 2008 #154
Joe Snuffy
Member
 
Join Date: Nov 2004
Location: Soon to be Oregon
Posts: 1,069
Joe Snuffy
Default

Quote:
Originally Posted by deathtozog View Post
Check the link. The guy that writes this blog is very sharp with the markets, investing, etc. His problem is that he doesn't see the nature of the Kwa for what it is. He knows something is wrong but believes in the system still.
You would think someone as bright as KD would "get it" but he don't. To him America is all about money and property and the ability for him to acquire them. Only when that is gone will he recognized the destruction of his country and even then he more than likely still won't "get it".
 
Old October 27th, 2008 #155
Joe Snuffy
Member
 
Join Date: Nov 2004
Location: Soon to be Oregon
Posts: 1,069
Joe Snuffy
Default

Quote:
Originally Posted by Bassanio View Post
I noticed that. I just bought some bullion the other day as well. And I bought silver a few weeks ago when it was at $10.70.

I feel sorry for the people who bought gold at $900+ and silver at $15+

I'm confident that it will go back up, but the question is how much more will it first go down.
I'm not buying back into silver till it gets down to 3 or so dollars/oz. Seriously, I think it will go that low within a few years.
 
Old October 27th, 2008 #156
fdtwainth
Guest
 
Posts: n/a
Blog Entries: 397
Default

Quote:
Originally Posted by Joe Snuffy View Post
I'm not buying back into silver till it gets down to 3 or so dollars/oz.
Silver will not go down to 3 USD/ounce.
 
Old October 27th, 2008 #157
Joe Snuffy
Member
 
Join Date: Nov 2004
Location: Soon to be Oregon
Posts: 1,069
Joe Snuffy
Default

Quote:
Originally Posted by fdtwainth View Post
Silver will not go down to 3 USD/ounce.
I think it will as long as the government doesn't do anything to debase the dollar.
 
Old October 27th, 2008 #158
fdtwainth
Guest
 
Posts: n/a
Blog Entries: 397
Default

Quote:
Originally Posted by Joe Snuffy View Post
I think it will as long as the government doesn't do anything to debase the dollar.
Silver will go up, to 15 USD/ounce in exactly 29 days. Want a bet?
 
Old October 27th, 2008 #159
Joe Snuffy
Member
 
Join Date: Nov 2004
Location: Soon to be Oregon
Posts: 1,069
Joe Snuffy
Default

Quote:
Originally Posted by fdtwainth View Post
Silver will go up, to 15 USD/ounce in exactly 29 days. Want a bet?
I'll pass on the bet. I'm not sure about the short term volatility it will experience but in the long run I see nothing but downward pressure on its price. I will say that I doubt silver will see such a spike but maybe conditions in Europe could prove otherwise. You sound sure of yourself so I am curious whats coming in 29 days?
 
Old October 27th, 2008 #160
notmenomore
Senior Member
 
notmenomore's Avatar
 
Join Date: Nov 2006
Posts: 3,175
notmenomore
Default

Quote:
Originally Posted by Joe Snuffy View Post
...as long as the government doesn't do anything to debase the dollar.

As I'm sure you know, there are some very ugly rumors about.

However, after reading DTZ's blog above, it may be that Europe will lead with its chin first.

Ain't it awesome just how much trouble a few unsupervised oberjuden can stir up in a few years?
__________________
No way out but through the jews.
 
Reply

Tags
put on glasses

Share


Thread
Display Modes


All times are GMT -5. The time now is 11:59 PM.
Page generated in 0.19074 seconds.