Category: Credit Crisis 2009
The analysis published under this category are as follows.Monday, October 26, 2009
Banks Screaming to be Regulated as Credit Card Panic Beckons / Personal_Finance / Credit Crisis 2009
Emails are pouring in over Citigroup's "Hail Mary Pass": How To Know Citigroup Is In Serious Trouble.
Here is one from "HG" who writes
Monday, October 26, 2009
Second Guessing Commodity Trading Systems / Stock-Markets / Credit Crisis 2009
Mechanical trading systems used in commodity trading if followed with discipline and patience can assist one in their quest for long term success. Many of these systems are based on trend following. One of the most positive aspects of mechanical commodity trading systems is that it helps commodity traders control their emotions ( or at least it should)
Read full article... Read full article...
Wednesday, October 21, 2009
Mervyn King Attacks Fellow Bankers, But Talk is Cheap / Politics / Credit Crisis 2009
Mervyn King one of the key people behind the failure to regulate the out of control banking sector, the bailout of which risks bankrupting Britain Iceland style as the budget deficit continues to mushroom higher towards £200 billion for the current the fiscal year the consequences of which will trigger a double dip depression for Britain, uttered more words against his fellow bankster's, but as we have seen talk is cheap or rather worthless if not backed up by any real action to hold the bankster's to account.
Read full article... Read full article...
Sunday, October 18, 2009
Bair Admits FDIC in the Red Until 2012 / Economics / Credit Crisis 2009
Counting projected losses FDIC bank fund in the red until 2012.
Read full article... Read full article...
Thursday, October 15, 2009
Reviving the Economy with Publicly Owned Banks / Economics / Credit Crisis 2009
The credit crunch is getting worse on Main Street, despite a Wall Street bailout that is now in the trillions of dollars. The Federal Reserve's charts show that "base money" is rapidly expanding - meaning coins, paper money, and commercial banks' reserves with the central bank. But the money isn't making it to where it needs to go to stimulate economic growth: into the bank accounts of American businesses and consumers. The Fed has been pumping out money to the banks, and their reserves have been growing at unprecedented rates; but the money supply in the real economy has been declining.
Read full article... Read full article...
Thursday, October 15, 2009
Truth Behind the Financial Crisis May Lead to Another Crash / Politics / Credit Crisis 2009
William K. Black - professor of economics and the senior regulator during the S & L crisis - says that that the government's entire strategy now - as during the S&L crisis - is to cover up how bad things are ("the entire strategy is to keep people from getting the facts").
Indeed, as I have previously documented, 7 out of the 8 giant, money center banks went bankrupt in the 1980's during the "Latin American Crisis", and the government's response was to cover up their insolvency.
Read full article... Read full article...
Wednesday, October 14, 2009
Global Financial Crisis Polarising Market Perspectives- Credit and Credibility Chapter3 / Stock-Markets / Credit Crisis 2009
Chapter 3: “May you live in interesting times”
The global financial crisis has wrought such extensive damage that it has polarized market perspectives like nothing in our experience. The two prevailing camps may be categorized as those subscribing to variations on either the ‘green shoots’ or the ‘Dawning of the Asian Century’ themes and those believing the lull that has existed since early March is but the calm during the eye of the storm and global markets are in for a fresh, possibly more severe battering.
Read full article... Read full article...
Tuesday, October 13, 2009
Debt Crisis of 2008 Transformed Into Dollar Crisis of 2009-2010! / Stock-Markets / Credit Crisis 2009
Martin here with an urgent update on the next phase of this crisis …
Fed Chairman Bernanke and Treasury Secretary Geithner are in for a rude awakening.
Even as they declare “victory” in their battle against the debt disaster on Wall Street, they face defeat in the war against four dangerous, unintended consequences on Main Street:
Read full article... Read full article...
Saturday, October 10, 2009
Fractional Reserve Banking System Basis of Bankster Fraud / Stock-Markets / Credit Crisis 2009
The heart of the modern monetary system is fractional reserve banking. This system is based on fraud. At the very heart of the modern economy is fraud – fraud on a gigantic scale.
What is the nature of this fraud? Counterfeiting. Banks are government-licensed institutions that issue bogus IOUs. Because these IOUs function as money, they are counterfeit money. This is the heart, mind, and soul of all modern banking.
Read full article... Read full article...
Saturday, October 10, 2009
The Securitization Boondoggle / Interest-Rates / Credit Crisis 2009
The relentless financialization of the economy has resulted in a hybrid-system of credit expansion which depends on pools of loans sliced-and-diced into tranches and sold into the secondary market to yield-seeking investors. The process is called securitization and it lies at the heart of the current financial crisis. Securitization markets have grown exponentially over the last decade as foreign capital has flooded Wall Street due to the ballooning current account deficit.
Read full article... Read full article...
Friday, October 09, 2009
In Defense of Capitalism: a True Love Story / Politics / Credit Crisis 2009
My writing is a byproduct of my investment process, I think through writing. I don’t do movie reviews and don’t watch Michael Moore’s movies. A Denver Post reporter invited me to a private showing of Moore’s latest flick last Monday Capitalism: a Love Story, it stirred up a lot of memories and I recently finished reading Atlas Shrugged which had a great impact on me. A combination of all those things motivated me to write this.
Read full article... Read full article...
Friday, October 09, 2009
Big Boys and Their Synthetic Political and Financial Toys / Politics / Credit Crisis 2009
It was a story about a man who plunged from an escalator at The Pier Shops at Caesars in Atlantic City that raised my curiosity. He was the second man to die on that same escalator.
Read full article... Read full article...
Friday, October 09, 2009
Technically Bankrupt Iceland Parliament Proposes Debt Default Solution / Politics / Credit Crisis 2009
Reykjavik , Iceland , Oct. 7 – A leading member of the Icelandic parliament called Monday night for the country to declare a debt moratorium and stop attempting to pay the $6 billion which the British and Netherlands governments are seeking to extort from Iceland with the help of the International Monetary Fund and the European Commission in Brussels. This dramatic call was issued by Birgitta Jónsdóttir, the chairman of the parliamentary faction of The Movement in the Icelandic parliament, the Althing. Birgitta Jónsdóttir was speaking during a special session of the Althing called to address the rapidly deteriorating economic and financial position of Iceland, one year after the collapse of the three hot-money offshore banks, Landsbanki, Kaupthing, and Glitnir.
Read full article... Read full article...
Thursday, October 08, 2009
The Fed's Financial Crisis Balance Sheet Exit Strategy Dilemma / Interest-Rates / Credit Crisis 2009
The Federal Reserve (Fed) and other central banks currently face a dilemma. A strong central-bank balance sheet is essential for the quality of a currency and the stability of a financial system. Unfortunately, the financial crisis has seen substantial changes in the balance sheets of the world's major central banks.
Read full article... Read full article...
Wednesday, October 07, 2009
Stock Market Rally Warning, Investors Should Adopt a Defensive Posture / Stock-Markets / Credit Crisis 2009
Markets worldwide have been rallying on the assumption that more of the very same interventionist policies and malfeasance that caused the global financial crisis can in fact cure it. Our analysis of recent events concludes this assumption is misguided for a number of reasons, not least being:
Read full article... Read full article...
Wednesday, October 07, 2009
Restoring a Viable System of Bank Credit / Politics / Credit Crisis 2009
Fed chief Ben Bernanke is in a bit of a bind. He's being asked to restore a system for credit expansion which collapsed more than two years ago and has shown no sign of life ever since. During the boom years, securitization accounted for more than 40 percent of the credit flowing into the economy. No more. When two Bear Stearns hedge funds defaulted in July 2007, the system crashed as investors of all stripes backed away from complex, illiquid assets.
Read full article... Read full article...
Sunday, October 04, 2009
A Solution for the Financial Crisis, Is America Broke Part III / Stock-Markets / Credit Crisis 2009
"The rich ruleth over the poor,and the borrower is servant to the lender." [1]
Abstract
This is the third and final paper in the Is America Broke series. In the first two articles, several of the contributing factors to today’s financial crisis were discussed. Several important questions were asked:
Read full article... Read full article...
Friday, October 02, 2009
Could Goldman Sachs Share GM's Bankruptcy Fate? / Companies / Credit Crisis 2009
Martin Hutchinson writes: Investment banks have gotten fat off the land since 1982, when the great U.S. bull market got its start. Their business has multiplied many-fold, and their earnings have soared into the stratosphere, to a level far higher than any other sector.
Read full article... Read full article...
Thursday, October 01, 2009
U.S. Financial System Systemic Failure Approaches / Stock-Markets / Credit Crisis 2009
Debate stirs on whether the financial structure of the USEconomy is broken irreparably. Debate stirs on whether actions taken in the last year or two have put the nation on a path that can even achieve stability, let alone recovery. Debate stirs on whether a pernicious and not so secret syndicate has taken control of the USGovt financial ministries, let alone be removed. Debate stirs on whether lack of US Federal Reserve audits and disclosure of their accounting is integral to sustaining the syndicate control as well as its probable egregious fraud. Debate stirs whether the nationalizations have actually enabled adoption of wrecked assets, have concealed executive ransacking, and have buried massive counterfeit of bonds.
Read full article... Read full article...
Thursday, October 01, 2009
Deferring Financial Disaster / Stock-Markets / Credit Crisis 2009
Those who read the contrarian and alternative financial commentators may well be forgiven for wondering why the financial doomsday oft predicted hasn’t quite materialized. The financial crisis heralded by the crash in October 2008, preceded by the demise of Bear Stearns and Lehman Brothers, among others, by all accounts was the tip of the iceberg and the advent of the Great Depression of our age.
Read full article... Read full article...