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Keyword: financialcrisis

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  • Making It Easy to Predict the Next Financial Crisis

    10/30/2014 2:57:56 PM PDT · by Sean_Anthony · 5 replies
    Canada Free Press ^ | 10/30/14 | Alan Caruba
    Republicans are the adults in Congress while the Democrats, liberal to the core, will never admit we are being set up for another financial crisis It is a cliché, but true, that history repeats itself. This is largely due to the failure of each new generation to learn anything from the past as well as the human tendency toward the bad habits of greed and power-seeking. Only the names and faces change. That is why the next financial crisis is entirely predictable. On October 23, The Wall Street Journal had an article, “Relaxed Mortgage-Lending Rules Clear Final Hurdle.” The financial...
  • The Great Recession: The financial crisis that keeps on giving

    09/29/2014 2:01:22 PM PDT · by SeekAndFind · 6 replies
    Los Angeles Times ^ | 09/29/2014 | SCOTT MARTELLE
    The Great Recession has lasted a lot longer for some than for others. A new survey from Rutgers University’s John J. Heldrich Center for Workforce Development found that “one in five workers - or nearly 30 million people - say they were laid off from a job in the past five years," dating back to the end of the recession in June 2009. "Nearly 4 in 10 of these laid-off workers say they searched for a job for more than seven months before finding another one; one in five workers laid off during the past five years never found another...
  • Another financial meltdown on the horizon?

    07/02/2014 7:29:42 AM PDT · by SeekAndFind · 9 replies
    The Hill ^ | 07/01/2014 | Judy Shelton
    And you thought that last global financial crisis was bad. A report issued on Sunday by the Bank for International Settlements (BIS) warns that policymakers have failed to address the root problems that caused the 2007-2008 financial meltdown. Instead of taking a long-term perspective aimed at increasing real economic productivity and output — the kind that actually benefits people by raising living standards — government officials have sought to pump up the numbers through monetary and fiscal stimulus. As a result, we now have an alarming disconnect between the performance of global equity markets, which are booming, and an underlying...
  • Elizabeth Warren: You know who’s really to blame for this middle-class erosion? Reagan.

    05/21/2014 7:04:40 AM PDT · by SeekAndFind · 49 replies
    Hotair ^ | 05/21/2014 | Erika Johnsen
    Because when President Barack Obama was blaming every problem under the sun on his predecessor President George W. Bush, he just wasn’t go back far enough. Via RCP:CLICK ABOVE LINK FOR THE VIDEO WARREN: I grew up in an America that was investing in kids. It was investing in public universities. It had a higher minimum wage. It was an America that said every kid would get a fighting chance. And that’s how we built America’s great middle class. Then starting in about the 1980s, we turned in a different direction.COLBERT: You mean when Reagan came in and it...
  • ‘Jaw-Dropping’: Former U.S. Treasury Secretary Makes Bombshell Claim

    03/18/2014 8:54:29 AM PDT · by Twotone · 14 replies
    The Blaze ^ | March 18, 2014 | Jason Howerton
    The Chinese “received a message from the Russians” back in 2008 suggesting a pact to sell Fannie Mae and Freddie Mac securities on the market, which would have nudged down the price of the debt of Fannie and Freddie and also maximized the chaos on Wall Street, a former U.S. official told BBC. It confirms a report that TheBlaze TV’s For the Record first aired back in September 2013.
  • The case for repealing Dodd-Frank

    12/04/2013 2:51:24 PM PST · by RicocheT · 2 replies
    Imprimis: A Publication of Hillsdale College ^ | November 26, 2013 | Peter J. Wallison
    "Marking-to-market worked effectively as long as there was a market for the assets in question, but it was destructive when the market collapsed in 2007. With buyers pulling away, there were only distress-level prices for private mortgage-backed securities." "Accordingly, financial firms were compelled to write down significant portions of their private mortgage-backed securities assets and take losses that substantially reduced their capital positions and created worrisome declines in earnings. When Lehman Brothers, a major investment bank, declared bankruptcy, a full-scale panic ensued in which financial institutions started to hoard cash. They wouldn’t lend to one another, even overnight, for fear...
  • Here's How The Community Reinvestment Act Led To The Housing Bubble's Lax Lending

    11/06/2013 5:03:00 PM PST · by Titus-Maximus · 16 replies
    Business Insider ^ | 6.27.09 | John Carney
    Finance More: Economy Wall Street Banks Earnings Here's How The Community Reinvestment Act Led To The Housing Bubble's Lax Lending John Carney Jun. 27, 2009, 9:33 AM 103,381 53 Earlier this week I noted that I had changed my mind on the Community Reinvestment Act. Contrary to my initial conclusion, the evidence is overwhelming that the CRA played a significant role in creating lax lending standards that fueled the housing bubble. Once I realized this, I had to abandon my suspicion that the anti-CRA case was a figment of the rhetoric of Republicans attempting to distract attention from their own...
  • Cincinnati Must Face the Crisis that Sealed Detroit’s Fate

    11/02/2013 4:16:53 AM PDT · by Kaslin · 86 replies
    Townhall.com ^ | November 2, 2013 | Ken Blackwell
    Editor's Note: This column was co-authored by Prof. Richard Vedder, the Distinguished Professor of Economics Emeritus at Ohio University. Cincinnati and Detroit are separated by barely more than 250 miles – a five-hour drive at worst, or under an hour by plane. Despite this proximity, many Cincinnatians would prefer to believe that Detroit’s horrendous fiscal situation couldn’t possibly hit their city. Not so fast. As the largest bankrupt city in America, Detroit has seen its population drop by more than half, unemployment soar to well over double the national average, and services decline. This is what happens to a locality...
  • Barney Frank Fesses Up: Gov't Shares Blame For Financial Crisis

    09/27/2013 7:16:21 AM PDT · by SeekAndFind · 26 replies
    IBD ^ | 09/27/2013 | Paul Sperry
    <p>In a startling admission, the architect of the biggest regulatory hit on Wall Street since the New Deal now agrees with critics that Washington deserves as much blame for the financial crisis as Wall Street.</p> <p>Former Democratic Rep. Barney Frank, co-author of the Dodd-Frank Wall Street Reform and Consumer Protection Act, said in a recent forum on the crisis that the government — through its decades-long national homeownership campaign and affordable housing goals — "propelled" lenders and investors to excesses they would not have otherwise gone to in the absence of such political incentives.</p>
  • Larry Summers: A Casualty of the Left’s False ‘Financial Crisis’ Narrative

    09/18/2013 10:17:31 AM PDT · by SeekAndFind · 9 replies
    Pajamas Media ^ | 09/18/2013 | Tom Blumer
    Larry Summers won’t be the next chairman of the Federal Reserve. On Sunday, he informed President Barack Obama that he was withdrawing his name from consideration. There were plenty of substantive reasons to oppose Summers’ possible selection, not the least of which was his role in creating our current Keynesian policy-driven economic malaise. Of course, the left complains that if only the 2009 “stimulus” had been much larger, something Summers opposed, we’d now be better off. Sure, guys. More Keynesian “stimulus” would only mean we’d now be reeling from even more than the $5.3 trillion in budget deficits and $6.1...
  • After a decade of decline, it’s time for the dollar to have its day

    05/13/2013 9:01:15 AM PDT · by SeekAndFind · 8 replies
    The Telegraph ^ | 05/13/2013 | By Tom Stevenson
    Everyone knows that a weak yen is good for Japan’s big exporters like Toyota. Plot a chart of the exchange rate and the car-maker’s share price and the lines are barely distinguishable, so great is the correlation between the two. What’s more interesting to me is whether the flip side of this trade, dollar strength, is more than a short-term blip. The dollar has been falling against a basket of other currencies for 10 years now. If that process has run its course and the dollar is stabilising or even set to appreciate again, that could have big implications for...
  • RAHN: Where will the next financial crisis begin?

    03/20/2013 6:25:43 AM PDT · by SeekAndFind · 5 replies
    Washington Times ^ | 03/20/2013 | Richard Rahn
    Which country will serve as the trigger for the next financial crisis? Given the continuing rise in debt-to-gross domestic product (GDP) ratios in many countries, it is apparent that a new financial crisis will occur. Most of the speculation has been about when, rather than where. The most likely candidates are heavily indebted countries with a large growth deficit. The growth deficit is the difference between expected GDP growth and the expected government spending deficit as a percentage of GDP. The way to eliminate the growth deficit is by either increasing economic growth or reducing government spending. Almost all economists...
  • Now Cyprus: Has the Next Phase of the Global Crisis Arrived?

    03/18/2013 6:58:56 AM PDT · by SeekAndFind · 11 replies
    Minyanville ^ | 03/18/2013 | By Todd Harrison
    Cyprus --- officially the Republic of Cyprus --- is an island country in the Eastern Mediterranean Sea, east of Greece, south of Turkey, west of Syria, Lebanon, northwest of Israel and north of Egypt.  I had to search Wikipedia for that information as I, like most of you, wasn't quite sure exactly where this island was.   This eurozone country, with population just north of one million, three-quarters of whom are Greek and most of the others Turkish, dominated the weekend financial news for those of us who were paying attention.  In a stunning shift from previous aid packages, EU...
  • Renault, Adjusting to Europe’s Declining Market, Will Cut 7,500 Jobs

    01/16/2013 1:07:39 AM PST · by Cronos · 1 replies
    New York Times ^ | 15 January 2013 | Dilly Jolly and Vindu Goel
    France’s ailing industrial sector took another blow on Tuesday when Renault said it planned to cut 7,500 domestic jobs by 2016, or about 17 percent of its French labor force, as it adjusts production capacity to the crushing downturn in the European car market. The plan, which the company said in a statement would save 400 million euros, or $540 million, in annual fixed costs, is needed to lower its break-even point — the amount of revenue needed to cover all outlays — and to “clear the way for the new hiring needed for the future.” The company said that...
  • Walter Williams: The Government, Not The Market, Created Our Financial Crisis

    12/13/2012 7:11:04 AM PST · by SeekAndFind · 25 replies
    IBD ^ | 12/13/2012 | Prof. Walter Williams
    Suppose you saw a building on fire. Would you seek counsel from the arsonist who set it ablaze for advice on how to put it out? You say, "Williams, you'd have to be a lunatic to do that!" But that's precisely what we've done: turned to the people who created our fiscal crisis to fix it. I have never read a better account of our doing just that than in John Allison's new book, "The Financial Crisis and the Free Market Cure." Allison is the former CEO of Branch Banking and Trust, the nation's 10th largest bank. He assembles evidence...
  • Our Government-Created Financial Crisis (Walter Williams)

    12/10/2012 10:40:44 AM PST · by jazusamo · 18 replies
    Creators Syndicate ^ | December 12, 2012 | Walter E. Williams
    Suppose you saw a building on fire. Would you seek counsel from the arsonist who set it ablaze for advice on how to put it out? You say, "Williams, you'd have to be a lunatic to do that!" But that's precisely what we've done: turned to the people who created our fiscal crisis to fix it. I have never read a better account of our doing just that than in John A. Allison's new book, "The Financial Crisis and the Free Market Cure." Allison is the former CEO of Branch Banking and Trust, the nation's 10th largest bank. He assembles...
  • Obama Wrong: Housing Policy, Not Tax Policy, Caused Recession

    12/08/2012 10:50:16 AM PST · by SeekAndFind · 46 replies
    IBD ^ | 12/06/2012 | Paul Sperry
    President Obama argues Republicans want to go back to pre-recession policies of cutting "taxes for the folks at the very top" and rolling back "regulations on big banks." He warned: "We tried that top-down approach. It's what caused the mess in the first place." Did it, though? Most economists agree the recession was caused by the subprime mortgage crisis, which had little if anything to do with tax policies. In fact, real economic growth accelerated after 2003, when the Bush tax cuts for top earners and small businesses fully went into effect. The 73-month economic boom of the 2000s didn't...
  • Why The Glass-Steagall Myth Persists (No Evidence Its Repeal Caused the Financial Crisis)

    11/13/2012 6:22:42 AM PST · by SeekAndFind · 6 replies
    Forbes ^ | 11/12/2012 | Yaron Brook and Don Watkins,
    The growth of government intervention over the last century was built on the back of a handful of myths. A generation ago, the dominant myth was that free markets had caused the Great Depression, a falsehood ultimately debunked by economists like Milton Friedman. Today, the key myth is that financial deregulation caused the 2008 financial crisis. What deregulation? There aren’t many possibilities. Despite what we hear, regulation of the financial industry substantially increased over the last thirty years. Government spending on financial regulations, to take one measure, ballooned from $725 million in 1980 to $2.07 billion in 2007 (in 2000...
  • Let It Be Known That No Financial Crisis Was Ever Caused by Stable Money

    10/16/2012 5:29:24 AM PDT · by SeekAndFind · 11 replies
    Forbes ^ | 10/16/2012 | Nathan Lewis
    There aren’t many blanket statements you can make about economics. Usually, “it depends.” But, there’s one thing I can say with a fairly high degree of confidence: No economic crisis was ever caused by stable money. For some reason, the gold standard system has gained a reputation for causing crises. This is mostly from the Keynesian camp: they need floating currencies to play their funny money games. The purpose of funny money is to solve some kind of problem whose fundamental cause is typically not monetary at all. For example, we are now in a process of trying to solve...
  • Greece Really Is Going To Start Selling Islands

    08/23/2012 8:49:29 AM PDT · by SeekAndFind · 29 replies
    Business Insider ^ | 08/23/2012 | Susan Daly
    THE PRIME MINISTER of Greece has made a surprise announcement to Le Monde newspaper: that his country is ready to put some of its uninhabited islands up for sale. According to the French publication today, PM Antonis Samaris makes the admission in a lengthy interview – a synopsis of it can be viewed on Le Monde’s website. In the introduction, the reporter Alain Salles notes that Greece hopes to accelerate the privatisation (of some State assets) and is ready to give up uninhabited islands (underlined in red): It’s part of Samaras’s plan to try and pull Greece back from the...
  • 11 Things That Can Happen When You Allow Your Country To Become Enslaved To The Bankers

    08/12/2012 6:00:39 AM PDT · by SeekAndFind · 9 replies
    The Economic Collapse Blog ^ | 08/12/2012 | Michael Snyder
    Why are Greece, Spain, Italy, Portugal and so many other countries experiencing depression-like conditions right now? It is because they have too much debt. Why do they have too much debt? It is because they allowed themselves to become enslaved to the bankers. Borrowing money from the bankers can allow a nation to have a higher standard of living in the short-term, but it always results in a lower standard of living in the long-term. Why is that? It is because you always have to pay back more money than you borrowed. And when you get to the point...
  • 5 Signs of the Chinese Economic Apocalypse

    07/20/2012 12:04:33 AM PDT · by Cronos · 6 replies
    Foreign Policy ^ | 2 July 2012 | Trefor Moss
    Although China's outlook may still be positive by, say, European standards, the numbers show that the country's storied growth engine has slipped out of gear. Businesses are taking fewer loans. Manufacturing output has tanked. Interest rates have unexpectedly been cut. Imports are flat. GDP growth projections are down, with some arguing that China might already be in recession. In March, Premier Wen Jiabao put the 2012 growth target at 7.5 percent Here are five real-world signs of China's economic malaise. BYE-BYE BMW: The $586 billion stimulus package that enabled China to sail through the 2009 global downturn only deferred the...
  • High Stakes ahead of Crunch Summit: Euro Crisis Threatens European Way of Life

    06/26/2012 3:09:37 PM PDT · by Olog-hai · 6 replies
    Der Spiegel ^ | 06/26/2012 | Konstantin von Hammerstein, Ralf Neukirch and Christoph Schult
    … Everyone knows what is at stake. "If the euro fails, Europe will fail," German Chancellor Angela Merkel said in a May 2010 speech in the western German city of Aachen. Since then, the Europeans have held summit after summit and pledged bigger and bigger sums of money in a bid to get the situation under control. But it's only become worse. … Like a dangerous fungus, the crisis within the common currency threatens to eat away at Europe's foundations. By now, there is nothing less at stake than an entire lifestyle, one that millions of Europeans have come to...
  • India to add $10 bn to aid Europe

    06/25/2012 11:10:53 PM PDT · by Cronos · 9 replies
    The Hindustan Times ^ | 19 June 2012 | Pramit Pal Chaudhary
    India will pledge an additional $ 10 billion to the International Monetary Fund’s (IMF’s) firewall against a eurozone financial conflagration. This was announced by Prime Minister Manmohan Singh in his opening speech at the Group of 20 summit in Mexico. The money will be part of an estimated $63-billion contribution by the BRICS countries, the emerging group og economies currently chaired by India, to the IMF’s $430-billion emergency fund. The BRICS countries, comprising Brazil Russia India China and South Africa, had earlier agreed that their contributions would be conditional on the IMF enhancing their voting rights and “that this recourse...
  • Transparency International: Corruption fuels eurozone crisis (therefore “more Europe”?!?)

    06/07/2012 11:53:03 AM PDT · by Olog-hai · 2 replies
    EurActiv ^ | 07 June 2012 | Kathrin Haimerl, Robert Bosch Stiftung EU Journalism Fellow at EurActiv.com
    Gaps in governance and corruption undermine Europe’s financial and economic stability and have contributed to the eurozone crisis, a report presented yesterday (6 June) by Transparency International suggested. The anti-corruption NGO said there is a strong correlation between fiscal deficits and corruption in crisis-hit countries such as Greece, Portugal and Spain. But countries considered the "cleanest of the clean" have also deficits in their anti-corruption framework. Links between corruption and the financial and fiscal crisis should no longer be ignored, Transparency International (TI) said. Greece, Portugal and Spain were underscored as countries where "inefficiency, malpractice and corruption are neither sufficiently...
  • ‘The Financial Crisis Was the Result of Government Housing Policy’

    05/18/2012 9:01:25 PM PDT · by neverdem · 43 replies
    Reason ^ | June 2012 | Anthony Randazzo
    The American Enterprise Institute’s Peter Wallison on how government, not greed, was the essential ingredient in the 2008 meltdown. In January 2011, a bipartisan, 10-member, government-created body called the Financial Crisis Inquiry Commission (FCIC) issued a comprehensive report assigning blame for the 2008 financial meltdown. The main culprits: “widespread failures in financial regulation and supervision,” “dramatic failures of corporate governance and risk management at many systemically important financial institutions,” “a combination of excessive borrowing, risky investments, and lack of transparency,” a government that “was ill prepared for the crisis,” and “a systemic breakdown in accountability and ethics.” The four Republicans...
  • Eurozone finance ministers to meet amid Greek and Spanish crises

    05/14/2012 12:06:13 AM PDT · by Olog-hai · 7 replies
    Daily Telegraph ^ | 7:04AM BST 14 May 2012 | Andrew Trotman
    Eurozone finance ministers will meet in Brussels today amid Greek political chaos and fears over the health of Spain's banking sector. Ministers from the 17 countries that make up the EuroGroup are to convene at 4pm GMT for talks that one senior EU official told the Wall Street Journal would be "very political". Events will be dominated by the ongoing problems in Greece, which once again failed to form a coalition government on Sunday. Talks in the country will continue today, but reportedly without Alexis Tsipras, the leader of far-left party Syriza. He has said he wants to keep Greece...
  • Obama: EU failed to take 'decisive steps' in crisis

    05/12/2012 3:12:26 PM PDT · by Olog-hai · 11 replies
    EurActiv ^ | 11 May 2012 | (EurActiv.com with Reuters)
    US President Barack Obama said on Thursday (10 May) that Europe was still in a difficult place economically in part because it did not take some of the steps the United States did. These had included a large-scale fiscal stimulus program and aggressive action by the Federal Reverve, the US central bank. Addressing about 70 people at a fundraiser in Seattle, Obama said Europe's troubles were among the factors that could affect US growth, also mentioning high gasoline prices as a potential economic drag. "We've still got headwinds. Europe is still … in a difficult state, partly because they didn't...
  • What if the austerity measures and balancing budget won't work? The worst may be still on the way...

    05/07/2012 6:16:02 AM PDT · by se99tp · 8 replies
    Christian Concepts Daily ^ | May 7th, 2012 | Norman Bailey, Alexander Mirtchev
    Other than the stock market crash of 1987, which was seen at the time as the harbinger of another great depression, the worst was avoided due to excellent Federal Reserve policies directed specifically at market psychology. The effectiveness of the Fed aside, it should be noted that the short and medium cycles did not coincide during that period. After the mid-point of the decade of 2000, they did, so that a long-wave theorist could hypothesize that the collapse phase of the long wave was delayed by about a decade, when the three cycles did, in fact, coincide. The confluence of...
  • Europe faces 3 national elections on 'Super Sunday'

    05/05/2012 1:51:47 AM PDT · by Olog-hai · 3 replies
    EurActiv ^ | 04 May 2012 | Georgi Gotev, Marie Herbet, Smiljana Vukoj&#269;i&#263;, Yannis Roubatis
    On Sunday (6 May), the French will elect a new president, the Greeks will hold general elections, and EU hopeful Serbia will designate their new president, Parliament and local authorities. The stakes appear high not only for the individual countries concerned but also for Europe as a whole. In France, outgoing President Nicolas Sarkozy is facing likely defeat against Socialist contender François Hollande, who has a comfortable lead of at least five percentage points in several opinion polls. A debate between the two contenders on Wednesday night, watched live by more than a third of the electorate, was seen as...
  • As Europe's Most Pathological Liar Departs, Questions About Europe's Band-Aid Union Reemerge

    05/01/2012 6:11:27 PM PDT · by Olog-hai
    Zero Hedge ^ | 04/30/2012 20:28 -0400 | Tyler Durden
    We doubt many tears will be shed over the now official departure of Europe's most embarrassing political figurehead: the head of the Euro-area finance ministers, one Jean-Claude Juncker, whose presence did more documented damage to the credibility of Europe than... well, we would say virtually anyone else, but then again since everyone else in the European pantheon is a shining example of DSM IV-level sociopathology, we are kinda stuck. But anyway: Juncker is finally gone; "he’s tired of Franco-German interference in managing the region’s debt crisis." And while the decision was known for a while, the ultimate catalyst is rather...
  • Economic Nostradamus: We Are Literally Witnessing A Collapse

    04/28/2012 10:36:01 AM PDT · by blam · 50 replies
    SHTF Plan ^ | 4-28-2012 | Mac Salvo
    Economic Nostradamus: We Are Literally Witnessing a Collapse Mac Slavo April 27th, 2012 With the Presidential election cycle in full swing our incumbent administration, the media, and their financial pundits continue to maintain that the US economy’s green shoots have blossomed into fields of golden sunflowers. Despite what we’re being told, however, the actual data tells a stunningly different story. Richard Yamarone, a senior economist for Bloomberg Brief, has been called an economic Nostradamus for his prescient forecasting of the 2008 financial crisis, and now he’s warning that the worst is not over. In a recent interview with King World...
  • Will Wall Street Ever Face Justice?

    03/02/2012 6:51:36 AM PST · by SeekAndFind · 20 replies
    New York Times ^ | 03/02/2012 | Phil Angelides
    LAST week, Attorney General Eric H. Holder Jr. proclaimed in a speech that when it comes to fighting financial fraud, the Obama administration’s “record of success has been nothing less than historic.” Such self-congratulation is not only premature, but it also reveals a troubling lack of understanding about what is required to win the war against financial wrongdoing. Four years after the disintegration of the financial system, Americans have, rightfully, a gnawing feeling that justice has not been served. Claims of financial fraud against companies like Citigroup and Bank of America have been settled for pennies on the dollar, with...
  • Politicians Fiddle While Fiscal Crisis Looms

    02/22/2012 4:07:08 AM PST · by Kaslin · 10 replies
    Townhall.com ^ | February 22, 2012 | John Stossel
    Imagine this family budget: Last year, you earned $24,700. But you spent $37,900, incurring $13,300 in debt, and you were already $153,500 in debt. So you say, "I promise I'll spend $300 less this year!" Anyone can see that your cutback is pathetic and that you need to spend much less. Yet if you add eight zeroes, that's America's budget. The president says again that he will cut spending -- but don't be fooled. He wants to spend more on some items, those he euphemistically calls "invest(ment) in the things that will help grow our economy." (As though politicians can...
  • Lessons to be learned from Europe's debt downgrades

    01/23/2012 3:02:39 PM PST · by richardb72 · 1 replies
    Fox News ^ | January 23, 2012 | John Lott
    As we watch the Eurozone struggle with its financial challenges Keynesians keep telling us the solution to our economic problems is to spend more money, to pile up bigger debts. A week and a half ago, Standard & Poor’s downgraded the debt of more than half of the Eurozone's countries, and the failure of those policies should be very obvious by now. Solving the Greek debt crisis hit yet another snag on Sunday afternoon. New aid for Greece from the IMF, the European Commission and the European Central Bank would have relied on private bondholders “voluntarily” agreeing to a 50...
  • Minister: Markets trust eurozone again

    01/22/2012 11:08:21 PM PST · by Olog-hai · 2 replies
    The Local ^ | 23 Jan 12 07:48 CET
    Financial markets are gradually regaining confidence in the eurozone, German Finance Minister Wolfgang Schäuble said Sunday. "This can be seen in the market reaction," Schäuble said in an interview with German public television ARD. "We're not yet in the clear, but we have seen in recent weeks and during recent bond sales that the markets are slowly regaining confidence." … Asked about an article in German news magazine Der Spiegel, which said Italy's Prime Minister Mario Monti had argued for a doubling in size of the eurozone's European Stability Mechanism (ESM), Schäuble said leaders would look closely at the mechanism...
  • Twinkies Maker Hostess Files For Bankruptcy

    01/14/2012 2:43:44 PM PST · by Cronos · 52 replies
    Dr. Jays ^ | 14 Jan 2012 | Ben Glasser
    The maker of snack cakes including Twinkies, Ho Hos, and DingDongs has filed for Chapter 11 bankruptcy protection. But a company spokesperson has assured that production of the famous cream-filled treat will continue as usual for now.“Throughout the proceeding, we’re going to operate business as normal,” said Hostess spokesman Erik Halvorson, according to CNNMoney. “They’ll keep making Twinkies.”Hostess declared bankruptcy for the first time in 2004, and didn’t emerge until 2009, an unusually long time for the situation. Even more unusual is the second Chapter 11 filing (or “Chapter 22,” in some legal circles) so soon after.Hostess blames unions and...
  • EU central bank to issue more cheap loans

    01/12/2012 7:17:24 PM PST · by Olog-hai
    EU Observer ^ | 12.01.12 @ 17:39 | Valentina Pop
    BRUSSELS—European Central Bank (ECB) chief Mario Draghi said on Thursday (12 January) after a monthly board meeting that he will keep up a "temporary" program of cheap loans for EU banks because it has "prevented a more serious credit crunch." The ECB also kept the interest rate at 1 percent following a decrease from 1.25 percent in November. "The provision of liquidity will continue to support euro-area banks and thus economic recovery. Our non-standard measures had a substantial contribution to improving the financial situation of banks," Draghi said during a press conference in Frankfurt. … Draghi highlighted the need to...
  • Bloomberg Hides Government Causes of Financial Crisis

    01/05/2012 2:33:19 PM PST · by neverdem · 6 replies
    American Spectator ^ | 1.4.12 | Peter Ferrara
    Media propagandists continue to advance the Democratic Party line. On December 21, Bloomberg News breathlessly reported, "The leading Republican candidates for president have embraced an explanation of the financial crisis that has been rejected by the chairman of the Federal Reserve, many economists and even three of the four Republicans on the government commission that investigated the meltdown." Reporter David J. Lynch further explained, "Both former House Speaker Newt Gingrich and former Massachusetts Governor Mitt Romney lay much of the blame on U.S. government housing policies, saying they led to the real estate crash that almost brought down the banking...
  • Estonia: The muted revival of a Baltic tiger

    12/30/2011 11:06:39 AM PST · by Cronos · 2 replies
    BBC ^ | 30 Dec 2011 | Jon Bithray
    Estonia is the euro's newest member and also has the eurozone's fastest growing economyMost European leaders would be delighted if their economy was growing as fast as Estonia's.The small Baltic state's economy is forecast to have grown by 8% during 2011, according to the EU's official statistics body. That's more than five times faster growth than the European Union as a whole. But Estonia is still regaining the ground it lost during a financial crisis that struck it and its Baltic neighbours in 2008-9, when a property bubble burst spectacularly, causing the economy to shrink and unemployment to rocket to...
  • Why the Left is Losing the Argument over the Financial Crisis

    12/28/2011 5:58:12 AM PST · by SeekAndFind · 14 replies
    The American ^ | 12/28/2011 | By Peter J. Wallison and Edward Pinto
    The day before Christmas, Joe Nocera did it again—wasted a perfectly good column with another attack on us, Peter Wallison and Ed Pinto. It’s worth reading for what it says about the Left’s current situation. According to Nocera, we “almost single-handedly” have created a “myth that Fannie Mae and Freddie Mac caused the financial crisis.” Those who have fallen for this myth, according to Nocera, include congressional Republicans and the Wall Street Journal’s editorial page. It’s somewhat implausible that two guys at a Washington think-tank, arguing that the financial crisis was caused by government housing policy, could create a...
  • Measure of Fear: Banks Bunker Hundreds of Billions in Deposits at ECB

    12/27/2011 1:25:39 PM PST · by Olog-hai · 3 replies
    Der Spiegel ^ | 12/27/2011
    The sum of overnight deposits at the European Central Bank (ECB) is often considered to be an indicator of the level of fear brewing within the financial sector. The greater the degree of distrust between banks, the more money banks tend to deposit on a daily basis with the ECB, where interest rates are low, but deposits more secure. This week has seen the level of deposits at the ECB's overnight facility rise to close to €412 billion ($538.4 billion)—the greatest amount seen since the euro's introduction, and representing a single overnight increase on Monday of €65 billion. The previous...
  • Worse Than 2008

    12/23/2011 8:05:30 AM PST · by DeaconBenjamin · 4 replies
    Chris Martenson.com ^ | Wednesday, December 21, 2011, 10:00 am | Chris Martenson
    There are clear signs of a liquidity crunch in the asset markets right now, and the question I keep hearing is, Is this 2008 all over again? No, it’s worse. Much worse. In 2008 there was a lot more faith and optimism upon which to draw. But both have been squandered to significant degrees by feckless regulators and authorities who failed to properly address any of the root causes of the first crisis even as they slathered layer after layer of thin-air money over many of the symptoms. Anyone who has paid attention knows that those "magic potions" proved to...
  • Trade finance drying up amid financial crisis

    12/17/2011 12:50:26 PM PST · by george76 · 3 replies
    AFP ^ | December 17, 2011
    Trade finance is drying up amid the financial crisis, threatening jobs and economic growth, trade sources warned Saturday. Banks like Credit Agricole and BNP Paribas -- two of the 25 financial institutions most active in such financing -- have recently reduced their trade financing business, said a trade source on the sidelines of a World Trade Organization ministerial conference. ... More than 90 percent of commercial transactions in the world require such credit, but the current crisis is forcing banks to hold on to capital and liquidity, leading to the lending market drying up and making credit more expensive.
  • ‘We Don’t Face Any Good Options’ - Nobel Prize–winning economist Vernon Smith on the financial...

    11/30/2011 1:17:05 PM PST · by neverdem · 9 replies
    Reason ^ | December 2011 | Nick Gillespie
    Nobel Prize–winning economist Vernon Smith on the financial crisis, Adam Smith’s underrated insights, and his journey from socialist to libertarian “I remember the ’30s like it was yesterday,” says economist Vernon Smith. And he’s not kidding. In 1935, when the future Nobel Prize winner was 7 years old, his family decamped to their Kansas farm to wait out the hard times. “On the farms,” Smith explains, “you can eat.” His parents only made it to eighth grade, but “they were people who read,” and they expected their son to go to college. They got their wish—and then some. Smith’s higher...
  • Bank of America stock nearing $5 danger zone

    11/29/2011 4:49:30 PM PST · by rabscuttle385 · 23 replies
    CNN Money ^ | 2011-11-29 | Maureen Farrell
    NEW YORK (CNNMoney) -- Another trading day and another low for Bank of America's stock. Shares of Bank of America dropped more than 3% Tuesday, hitting a new 52-week low of $5.03 -- its lowest level since March 12, 2009. After the close of trading Tuesday, Bank of America was one of 37 financial institutions downgraded by S&P. Beyond the S&P downgrade, trading could become even more complicated in Bank of America's stock, if it falls below $5. Under that threshold, many broker-dealers will not allow investors to buy or short a stock on margin, according to a spokesperson for...
  • The way out of our financial mess is transparency

    11/23/2011 12:46:48 PM PST · by neverdem · 20 replies
    American Thinker ^ | November 22, 2011 | Thomas Lifson
    David P. Goldman, writing as Spengler in the Asia Times, diagnoses the heart of the Wall Street crisis, and lays out the solution to the rot in our financial markets. This is an important article to read and digest.Goldman was himself an executive at Credit Suisse, and saw firsthand the generation of profit-making deals in the slicing, dicing, and resale of elements of risk associated with large bundles of individual home mortgages packaged as securities. In his customary clear-eyed, data-rich style, Goldman explains how it all works, and where it went wrong. The ratings agencies - Moody's, Standard and...
  • The next financial crisis will be hellish, and it’s on its way

    11/17/2011 6:21:35 AM PST · by george76 · 20 replies
    Forbes ^ | November 17, 2011 | Addison Wiggin
    "There is definitely going to be another financial crisis around the corner," says hedge fund legend Mark Mobius, "because we haven't solved any of the things that caused the previous crisis." We're raising our alert status for the next financial crisis. We already raised it last week after spreads on U.S. credit default swaps started blowing out. We raised it again after seeing the remarks of Mr. Mobius...he pointed to derivatives, the financial hairball of futures, options, and swaps in which nearly all the world's major banks are tangled up. Estimates on the amount of derivatives out there worldwide vary....
  • Gingrich Said to Be Paid $1.6M by Freddie Mac (RINO Alert)

    11/15/2011 9:06:05 PM PST · by rabscuttle385 · 132 replies
    Bloomberg | 2011-11-15 | Clea Benson & Dawn Kopecki
    Link only, per FR posting rules
  • Financial Reform: Unfinished Business (Paul Volcker)

    11/15/2011 8:12:25 PM PST · by neverdem · 8 replies
    NY Review of Books ^ | November 24, 2011 | Paul Volcker
    It should be clear that among the causes of the recent financial crisis was an unjustified faith in rational expectations, market efficiencies, and the techniques of modern finance. That faith was stoked in part by the huge financial rewards that enabled the extremes of borrowing, the economic imbalances, and the pretenses and assurances of the credit-rating agencies to persist so long. A relaxed approach by regulators and legislators reflected the new financial zeitgeist. All the seeming mathematical precision that was brought to investment, all the complicated new products, including the explosion of derivatives, that were intended to diffuse and minimize...