Category: Credit Crisis 2012
The analysis published under this category are as follows.Thursday, February 09, 2012
Money Market Funds Are in the Fight of Their Lives / Stock-Markets / Credit Crisis 2012
Shah Gilani writes: Money market funds aren't exactly the safe-haven investments they're cracked up to be.
In September 2008, when Lehman Brothers failed, money market investors fled funds in droves, exposing investors and capital markets across the globe to huge systemic risks.
Now, to better safeguard investors and prevent the commercial paper market from shutting down in future crises, SEC chairwoman Mary Schapiro is proposing to re-make the money market mutual fund industry in the image of banks.
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Tuesday, February 07, 2012
Financial Crisis American Gridlock, Why The “Left” And The “Right” Are Both Wrong / Politics / Credit Crisis 2012
Today we dive into Part 2 of Woody Brock’s notes from his new book, American Gridlock ( www.amazon.com/gridlock). He looks at what we can do in the future to prevent another crisis like we had in 2008, why we need to change, how we bargain with China (will be very controversial, in China at least!), what capitalism really is, and then he addresses the thorny issue of what it means to distribute wealth fairly. What can be said to those concerned with the top 1% of the population owning a grossly disproportionate share of the nation’s wealth?
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Monday, February 06, 2012
Bankers Committed Fraud to Get Bigger Bonuses / Politics / Credit Crisis 2012
Shah Gilani writes: In case you didn't catch the article titled "Guilty Pleas Hit the 'Mark'" in the Wall Street Journal, I'm here to make sure you don't miss it.
This is too good.
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Monday, February 06, 2012
Double Liability for Bank Shareholders, Officers and Directors / Politics / Credit Crisis 2012
Most people don't realize that for about 75 years after Civil War, in the United States, a bank's officers, directors and shareholders had personal liability in excess of the value of their shares. If a bank were to be declared insolvent by the regulator, they were required to make up the shortfall in an insolvency with their personal assets. This tends to focus the attention of the bankers to be more responsible in terms of their lending and other business practices and provides an automatic way to self-regulate. When you have no personal responsibility, other than maybe not getting a bonus next year, why not take big chance for a bigger personal payout? There is no downside for bankers with today's limited liability and the public is now stuck with these losses because the bankers have shifted their responsibility to the public.
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Friday, February 03, 2012
Banking Crisis 2012 "Robo-Signing" of Foreclosure Affidavits Just Tip of Iceberg / Stock-Markets / Credit Crisis 2012
Shah Gilani writes: What may be good news for delinquent credit card holders may also be really bad news for banks.
It turns out the "robo-signing" of foreclosure affidavits is just the tip of the iceberg.
In what one judge called "robo-testimony," falsely attested-to statements by bank document custodians have been submitted in courts around the country by banks trying to win judgments against delinquent credit card debtors.
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Wednesday, February 01, 2012
What Really Happened To The Oldest Bank in Switzerland? / Companies / Credit Crisis 2012
Oldest Swiss Bank Goes Down
Wegelin and Co, the oldest private bank in Switzerland, agreed to a fire sale to Raiffeisen Group in the middle of its death throes last week. Wegelin bank -- established 270 years ago in 1741 -- managed to survive every threat across three centuries: revolution, financial disaster, and war including being invaded by Napoleon, the Sonderbund civil war and then Hitler. Every threat except for one: the relentless assault on Swiss banking secrecy by the United States government to reclaim the funds lost through tax evasion schemes sold to its citizens. Wegelin is now finished, courtesy of Uncle Sam. How long before other Swiss private banks follow Wegelin's shocking demise?
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Friday, January 27, 2012
Why Go Down With the Ship? Schettino, Failed Banksters and CEOs / Politics / Credit Crisis 2012
Will no one rise to the defense of Captain Francesco Schettino? No? Then we will!
The poor man is calumnied as a pusillanimous incompetent. Just because he hit a rock. Heck, anyone with a ship that big could hit a rock. And the rock wasn’t s’posed to be there!
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Friday, January 27, 2012
Credit Crisis Perfect Storm, Robert Prechter Discusses What's Backing Your Dollars / Interest-Rates / Credit Crisis 2012
In this video clip, taken from Robert Prechter's interview with The Mind of Money, Prechter and host Douglass Lodmell discuss "real" money vs the FIAT money system, and what is backing your dollars under our current system. Enjoy this 4-minute clip and then watch Prechter's full 45-minute interview here >>
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Thursday, January 26, 2012
Economic Austery is a 'Loaded Word' Says World Bank President / Politics / Credit Crisis 2012
Bloomberg TV's Erik Schatzker spoke to World Bank President Robert Zoellick this morning about the economic woes facing Italy. Zoellick said that Germany and other European nations can do more for Italy, and that austerity is a "loaded word."Read full article... Read full article...
Tuesday, January 17, 2012
Next Financial Crisis "Lehman Moment' Is Coming Fast / Stock-Markets / Credit Crisis 2012
Shah Gilani writes: It seems that my Thursday edition of Wall Street Insights & Indictments was warmly received by the bullish crowd, many of whom reached out to me to thank me for my optimism.
I'm sorry to burst your bubbles, but I am not a raging bull (but thank you for asking).
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Monday, January 16, 2012
Central Banks Transferring Risk From Private Sector onto Taxpayers / Interest-Rates / Credit Crisis 2012
With last Friday’s downgrades of European debt, the pressure from leaders, such as French President Nicholas Sarkozy, on central banks to print more money will increase. The concept of free markets is coming into question as government intervention is increasing at an alarming rate.
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Sunday, January 15, 2012
DEMOCRATIZE BANKING: How Counties Can Use Land Banks and Eminent Domain / Politics / Credit Crisis 2012
An electronic database called MERS has created defects in the chain of title to over half the homes in America. Counties have been cheated out of millions of dollars in recording fees, and their title records are in hopeless disarray. Meanwhile, foreclosed and abandoned homes are blighting neighborhoods. Straightening out the records and restoring the homes to occupancy is clearly in the public interest, and the burden is on local government to do it. But how? New legal developments are presenting some innovative alternatives.
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Tuesday, December 13, 2011
It's Time to Brace for a Repeat of Financial Crisis 2008, Recession 2012 / Stock-Markets / Credit Crisis 2012
Martin Hutchinson writes: If you think the global economy is out of the woods now that the European Union (EU) has expanded its effort to solve the sovereign debt crisis, then I'm afraid you're sorely mistaken.
No doubt, the European crisis is far from being solved - but that's hardly the only potential economic catastrophe looming on the horizon.
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