TIME TO TOAST THE HOST
we'd lak ta thank y'all..
fo hostin these..
virus games
Yes we was lonely
And we was hard pressed to find a smile
Man we was lonely
Yes we was lonely
But now were fine all the while
Professor Tim Congdon from International Monetary Research said US bank loans have fallen at an annual pace of almost 14pc in the three months to August (from $7,147bn to $6,886bn).
"There has been nothing like this in the USA since the 1930s," he said. "The rapid destruction of money balances is madness."
...This is not a simple problem...
...Restore normality too soon...
...and the risk is that a weak recovery will double dip into a second and deeper recession...
...Restore it too late and inflation will already be ingrained"...
PAINT AT THE END OF THE TUNNEL
petey :
...here in ...
...palookagrad...
...we are...
...uncertain...
...we would have been much happier...
...if the politix...
...had let the markets sort out the mess...
...but...
...vested interest...
...has stolen the day...
THE ONLY GAME IN TOWN
...yes the game is fixed...
...and yes you have to play...
...just don't be under any illusions...
...about efficient markets...
...or best advice...
...or rules...
...or solvency...
...smoke and mirrors...
...shifting sands...
...moving goal posts...
...it's economics jim!..
...but not as we knew it...
peteynation : foolin alla the people alla the time is difficult...
...1997 - 2007...
smoke an mirrors...profits of wax...
...less of the benefit...
...more of the tax...
DOWN BY BROWN
albert edwards : ..."What I find amazing is that people aren’t really nailing Gordon Brown and [Bank of England Governor] Mervyn King for this,” he said. “At least in the US they had the excuse of the arrival of sub-prime — a new sector of the market. We didn’t really have anything similar but we ended up with a bigger national Ponzi scheme than the US.”
THEY ARE NOW
from the times :-
...seven nails in his political coffin...
Indices tracking the value of the trillions of dollars of distressed assets that continue to blight bank balance sheets fell sharply this week as a negative spiral of financial distress and subsequent economic pain continued.
The declines – which signal further potential writedowns by banks – are fuelling fears that the first quarter of this year could herald further pain for the financial system, even as many banks reveal sharp losses for the fourth quarter of 2008.
To quote a recent op-ed in the Journal, which likened the government response to the current financial crisis to the circumstances described in Ayn Rand's Atlas Shrugged...Atlas Shrugged: Fiction To Fact
"Politicians invariably respond to crises -- that in most cases they themselves created -- by spawning new government programs, laws and regulations. These, in turn, generate more havoc and poverty, which inspires the politicians to create more programs . . . and the downward spiral repeats itself until the productive sectors of the economy collapse under the collective weight of taxes and other burdens imposed in the name of fairness, equality and do-goodism."
The similarities are so striking, it almost seems like regulators are using Atlas Shrugged as a playbook for their policy response to the crisis. They must not have waded through all 1,000 pages to see how the story ended.
The current economic strategy is right out of "Atlas Shrugged": The more incompetent you are in business, the more handouts the politicians will bestow on you. That's the justification for the $2 trillion of subsidies doled out already to keep afloat distressed insurance companies, banks, Wall Street investment houses, and auto companies -- while standing next in line for their share of the booty are real-estate developers, the steel industry, chemical companies, airlines, ethanol producers, construction firms and even catfish farmers....Mike "Mish" Shedlock...
With each successive bailout to "calm the markets," another trillion of national wealth is subsequently lost. Yet, as "Atlas" grimly foretold, we now treat the incompetent who wreck their companies as victims, while those resourceful business owners who manage to make a profit are portrayed as recipients of illegitimate "windfalls."
..."Owners of capital will stimulate the working class to buy more and more expensive goods, houses and technology, pushing them to take on more and more expensive debt, until their debt becomes unbearable.
The unpaid debt will lead to the bankruptcy of all banks, which will have to be nationalised, and the State will have to take the road which will eventually lead to communism.”
...So says the Karl Marx quote that has been whizzing round Wall Street and the City...
times :
"We seemed a step closer to that prospect yesterday.
Bank shares plunged again on both sides of the Atlantic amid concern that more capital injections will be required. Bank of America shares fell 20 per cent on reports that it needed further government help to complete the acquisition of Merrill Lynch. Merrill has suffered higher than expected losses in the fourth quarter and BoA is in talks with the American authorities about an infusion of capital.
Citigroup shares tumbled further, ahead of today's results, which are expected to be horrible.
These falls took the combined value of Citigroup and BoA - so recently the two most valuable banks in the world - below that of Wells Fargo, the conservative West Coast lender.
Back in Britain, bank shares were also under the cosh again, as ministers scurried to finalise another package of measures designed to get credit flowing again.
Gordon Brown said that the toxic assets of banks had to be dealt with, which could require more capital, while Capital Economics forecasts British banks will lose £85billion over the next three years and lending will be slashed by £400billion unless they get more capital.
At this rate, RBS will be fully nationalised before Sir Philip Hampton takes over as chairman.
According to the Marx quote, this means communism will not be far behind.
Except, of course, Marx didn't say that.
The quote is a fake. You just can't trust those bankers. times
| Adj. | 1. | Kafkaesque - relating to or in the manner of Franz Kafka or his writings |
| 2. | kafkaesque - characterized by surreal distortion and a sense of impending danger; "the kafkaesque terror of the endless interrogations" unrealistic - not realistic; "unrealistic expectations"; "prices at unrealistic high levels" |
edmond conway : ..."As we wrote in our City Comment that day: "One statistic in particular shows precisely how exposed the City is to the bursting of the household debt bubble. At the beginning of 2001, our banks were not lending customers any more than the total amount of deposits they held. By the end of 2005, banks were lending customers £500bn in cash which simply wasn't in the vaults. Should customers default on their loans, these banks could be in trouble, having to resort to borrowing chunks of money at penal interbank rates."
Not only did the Bank's report, which can be found here (page 28 is the one on the funding gap - p30 on the pdf version), lay out the City's increased reliance on wholesale funding - it also warned that this leaves banks extremely vulnerable in the event of a slowdown. Now, the Bank was not the first to diagnose the seeds of the crisis: there were one or two hedge funds which were already trading on the likelihood of a UK banking breakdown caused by this reliance on securitisation. There were plenty of commentators warning on the excessive build-up of debt. But as far as I can tell this was about the earliest warning on the problems inherent to the UK mortgage market.
The report completely debunks the notion that the financial crisis came as a surprise to the City, or indeed the Bank. The Government had been warned explicitly not by some crackpot economist but by its own employees in Threadneedle Street about precisely how the crisis could erupt. Not only this, but the report also revealed that its "war games" plotting out scenarios including a credit crunch revealed that a debt-fuelled crisis could cause a severe UK recession, a 25pc fall in house prices and a wiping out of a third of banks' tier one capital - around £40bn at the time. It is difficult to think how it could have made more noise about the possible risks the debt build-up entailed...."