The Bailout Is NOT Limited to $700 Billion, Paulson Could Spend UNLIMITED Taxpayer Money

Most people think that the proposed bailout will cost $700 billion. In fact, it is not limited to $700 big ones, and will probably go much higher.Specifically, Paulson’s draft bailout plans says:“The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time.”That means that Paulson could [...] continue reading world news

Goldman Sachs, Morgan Stanley Become Banks, Ending an Era for Wall Street

U.S. flags fly outside the headquarters of Goldman Sachs Group Inc., in New York, Sept. 16, 2008. Photographer: Gino Domenico/Bloomberg NewsSept. 22 (Bloomberg) — The Wall Street that shaped the financial world for two decades ended last night, when Goldman Sachs Group Inc. and Morgan Stanley concluded there is no future in remaining investment banks [...] continue reading world news

Dollar May Get `Crushed’ as Traders Weigh Up Bailout

U.S. one dollar bills are displayed for a photograph in New York, April 15, 2008. Photographer: Daniel Acker/Bloomberg NewsSept. 22 (Bloomberg) — Treasury Secretary Henry Paulson’s plan to end the rout in U.S. financial markets may derail the dollar’s three-month rally as investors weigh the costs of the rescue.The combination of spending $700 billion on [...] continue reading world news

China toxic milk sickens 53,000 as scare spreads

BEIJING (AFP) - China’s tainted milk scandal spiralled into uncharted territory Monday with the government announcing that up to 53,000 children had been sickened and its top product-quality inspector sacked.In a dramatic update of previous figures, the health ministry said a total of 52,857 children were taken to hospital after drinking milk thought to have [...] continue reading world news

Crude Oil Has Biggest Gain Ever as Dollar Drops Against Euro

Traders work in the crude oil options pit on the floor of the New York Mercantile Exchange in New York, on Sept. 22, 2008. Photographer: Jin Lee/Bloomberg NewsSept. 22 (Bloomberg) — Crude oil climbed more than $25 a barrel, the biggest gain ever, as the dollar weakened the most against the euro since January 2001, [...] continue reading world news

China Shuns Paulson’s Free Market Push as Meltdown Burns U.S.

“An open, competitive, and liberalized financial market can effectively allocate scarce resources in a manner that promotes stability and prosperity far better than governmental intervention,” Paulson said.Contemplate that for a moment.Now add this to your contemplation:Section 8 of the proposed legislation says it all:“Decisions by the Secretary pursuant to the authority of this Act are [...] continue reading world news

FBI investigating companies at heart of meltdown

WASHINGTON: The FBI is investigating four major U.S. financial institutions whose collapse helped trigger a $700 billion bailout plan by the Bush administration, The Associated Press has learned.Two law enforcement officials said Tuesday the FBI is looking at potential fraud by mortgage finance giants Fannie Mae and Freddie Mac, and insurer American International Group Inc. [...] continue reading world news

Bernanke Signals U.S. Should Pay More for Bad Debt

Hey it’s taxpayers money, so the higher the price the better.___________________________________________________________________________Ben S. Bernanke, chairman of the U.S. Federal Reserve, testifies before the Senate Banking Committee in Washington, Sept. 23, 2008. Photographer: Joshua Roberts/Bloomberg NewsSept. 23 (Bloomberg) — Federal Reserve Chairman Ben S. Bernanke signaled that the government should buy devalued assets at above-market values to [...] continue reading world news

$5 Trillion Cash Pool Needed to Stop Rout, Ohmae Says

Sept. 23 (Bloomberg) — Treasury Secretary Henry Paulson’s $700 billion plan to buy devalued assets from financial companies is “a joke” because it doesn’t go far enough to calm markets, said Kenichi Ohmae, president of Business Breakthrough Inc.Ohmae, nicknamed “Mr. Strategy” during his 23 years as a McKinsey & Co. partner, called for a $5 [...] continue reading world news

BAILOUT: Ron Paul Educates Bernanke…yet again 9/24/2008

Source: YouTubeWednesday, September 24, 2008Dear Friends,Whenever a Great Bipartisan Consensus is announced, and a compliant media assures everyone that the wondrous actions of our wise leaders are being taken for our own good, you can know with absolute certainty that disaster is about to strike.The events of the past week are no exception.The bailout package [...] continue reading world news

Ron Paul Discussing his Bernanke Confrontation 9/24/2008

Ron Paul on Fox BusinessSource: YouTube continue reading world news

Who Killed The Electric Car?

Documentary about GM killing of the electric car. It has been here since ‘96 but they killed it off.The film features interviews with celebrities who drove the electric car, such as Mel Gibson, Tom Hanks, Alexandra Paul, Peter Horton, Ed Begley, Jr., a bi-partisan selection of prominent political figures including Ralph Nader, Frank Gaffney, Alan [...] continue reading world news

House approves $25 billion loan program for automakers

Those carmakers do not deserve a single cent and here is why:Who Killed The Electric Car? (Documentary) Documentary about GM killing of the electric car. It has been here since ‘96 but they killed it off. The “gasoline” for operating this car only costs 16 cents per gallon!_____________________________________________________________________________DETROIT - The auto industry moved a step [...] continue reading world news

FDIC May Need $150 Billion Bailout as Local Bank Failures Mount

Sept. 25 (Bloomberg) — Deborah Horn tugs on the handle of the glass-paned entrance of the IndyMac Bancorp Inc. branch in Manhattan Beach, California. The door won’t budge. The weekend is approaching, and Horn, 44, the sole breadwinner in a family of three, needs cash.A small notice taped to the window on this Friday afternoon [...] continue reading world news

Bailout Could Deepen Crisis, CBO Chief Says

Asset Sales May Lead to Write-Downs, Insolvencies, Orszag Tells CongressPeter R. Orszag, director of the Congressional Budget Office, testifies on Capitol Hill yesterday. (By Brendan Hoffman — Getty Images)The director of the Congressional Budget Office said yesterday that the proposed Wall Street bailout could actually worsen the current financial crisis.During testimony before the House Budget [...] continue reading world news

Lawmakers: Financial bailout agreement reached

Senate Banking Committee Chairman Sen. Chris Dodd., D-Conn., center, speaks during a news conference with, from left, Sen. Bob Corker, R-Tenn., Sen. Charles Schumer, D-N.Y., Sen. Robert Bennett, R-Utah, Sen. Judd Gregg, R-N.H., and Sen. Jack Reed, D-R.I., following a meeting on the market turmoil on Capitol Hill in Washington, Thursday, Sept. 25, 2008. (AP [...] continue reading world news

Belgian, Dutch Central Banks Seek Solution for Fortis

Sept. 28 (Bloomberg) — Discussions between European, Dutch and Belgian officials on the future of Fortis, Belgium’s largest financial-services firm, carried into the evening as they sought a “solution” for the beleaguered bank.Dutch central bank chief Nout Wellink and Finance Minister Wouter Bos went to Brussels for talks with the Belgian government and regulators. European [...] continue reading world news

Rep. Michael Burgess: “We Are Under Martial Law”

Rep. Michael Burgess (R-TX) reports from the floor of the House that the Republicans have been cut out of the process and called unpatriotic for not blindly supporting the fraudulent bailout. He says the only debate has been about what talking points to use on the American people. The most ominous revelation is when he [...] continue reading world news

September 15, 2008 - Bush: Economy strong enough to handle turmoil

How can anyone trust Bush and Paulson with a $ 700.000.000.000 bailout?They either lie every time they open their mouth or they have set a new world record for unlimited ignorance.__________________________________________________________________________WASHINGTON -The Bush administration signaled strongly today that troubled Wall Street should not expect more rescues from Washington.Treasury Secretary Henry Paulson declared that the current [...] continue reading world news

Bailout failure will cause US crash

The bailout has already failed, because it cannot not fail. Now nobody will laugh anymore at Ron Paul who predicted all of this chaos a long time ago.Do you remember this article? Fortis Bank Predicts US Financial Market Meltdown Within Weeks___________________________________________________________________________The US stock market could suffer a devastating crash with shares losing a third of [...] continue reading world news

Rep. Marcy Kaptur warns: There are domestic enemies to the Republic

Photo: Perpetrators of the greatest financial crime in history celebrating their fraud against the American people. Rep. Marcy Kaptur (D-OH) warns the American people about Constitutional enemies of the Republic and the fraudulent trillion(s) dollar bailout:“My message to the American people don’t let Congress seal this deal. High financial crimes have been committed.”“The normal legislative [...] continue reading world news

Fed Pumps Further $630 Billion Into Financial System

Sept. 29 (Bloomberg) — The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression.The Fed increased its existing currency swaps with foreign central banks to $620 billion from $290 billion to make more dollars available worldwide. The [...] continue reading world news

Treasuries Are Dead Money With Yields Below Inflation

Sept. 29 (Bloomberg) — The rally in U.S. Treasuries may be running out of steam after yields fell to the lowest since Franklin D. Roosevelt was president.Renewed concern about the stability of the banking system sparked a run on Treasuries that drove bill rates down to 0.02 percent. Concern is so widespread that investors are [...] continue reading world news

Controlled Demolition Of The US Dollar And Banking System

Related:- Rep. Michael Burgess: “We Are Under Martial Law”- Rep. Marcy Kaptur warns: There are domestic enemies to the RepublicSource: YouTube continue reading world news

Gold and silver dealer reports an unprecedented shortage of metals

A surge for demand in gold and silver has resulted in an unprecedented shortage of the metals for retail investors in recent days, according to Gold and Silver Investments, a Dublin-based firm that allows retail investors to speculate on movements in the value of precious metals.Gold and Silver Investments director Mark O’Byrne said the supply [...] continue reading world news

U.S. Stocks Plunge After House Votes Against Bailout Plan

Sept. 29 (Bloomberg) — U.S. stocks plunged and the Standard & Poor’s 500 Index tumbled the most since 1987 after the House of Representatives voted down a $700 billion plan to rescue the financial system.Sovereign Bancorp Inc. tumbled 66 percent and National City Corp. slid 52 percent, leading financial shares in the S&P 500 to [...] continue reading world news

Home Prices in 20 U.S. Cities Declined 16.3% in July

Sept. 30 (Bloomberg) — House prices in 20 U.S. cities declined in July at the fastest pace on record, signaling the worst housing recession in a generation had yet to trough even before this month’s credit crisis.The S&P/Case-Shiller home-price index dropped 16.3 percent from a year earlier, more than forecast, after a 15.9 percent decline [...] continue reading world news

The $55 trillion question

The financial crisis has put a spotlight on the obscure world of credit default swaps - which trade in a vast, unregulated market that most people haven’t heard of and even fewer understand. Will this be the next disaster?(Fortune Magazine) — If Hieronymus Bosch were alive today to paint a triptych called “The Garden of [...] continue reading world news

Lehman Hedge-Fund Clients Left Cold as Assets Frozen

Barclays Capital logos are displayed on the facade of the Lehman Brothers Holdings Inc. headquarters building in New York, Sept. 24, 2008. Photographer: Gino Domenico/Bloomberg News Oct. 1 (Bloomberg) — Lehman Brothers Holdings Inc.’s bankruptcy probably means the end of hedge-fund manager Oak Group Inc. after 22 years in business.John James, who runs the Chicago-based [...] continue reading world news

Fund Manager Predicts Dow 5,000, Gold $2,000

David Tice, manager of the $1.1 billion Prudent Bear Fund, advised viewer of Bloomberg TV to move out equities into safer investmentsPosted: September 30, 2008Source: eyeblast.tv continue reading world news

Wealthy investors hoard bullion

Investors in gold are demanding “unprecedented” amounts of bullion bars and coins and moving them into their own vaults as fears about the health of the global financial system deepen.Industry executives and bankers at the London Bullion Market Association annual meeting said the extent of the move into physical gold was unseen and driven by [...] continue reading world news

ECB Keeps Rate at 4.25% Even as Recession Looms

Oct. 2 (Bloomberg) — The European Central Bank kept interest rates at a seven-year high today to curb inflation, even after the credit crunch forced governments to bail out banks and increased the likelihood of a recession.ECB policy makers meeting in Frankfurt left the benchmark lending rate at 4.25 percent, as predicted by all 58 [...] continue reading world news

Why Paulson has not explained the real purpose of the bailout to the American people

Related:“An open, competitive, and liberalized financial market can effectively allocate scarce resources in a manner that promotes stability and prosperity far better than governmental intervention,” Paulson said 18 months ago.Treasury Secretary Henry Paulson declared that the current turmoil in markets and financial institutions ultimately will “make things better.” (September 15, 2008)The mystery has been solvedFor [...] continue reading world news

Wachovia faced a silent bank run

Fearing a loss of funding over the weekend, the FDIC forced the sale.10/02/08 Downtown Charlotte skyline showing the Wachovia First Street Campus headquarters project under construction. DAVIE HINSHAW of the Observer from WCNC’s AirStar36 On Friday, with its stock plunging 27 percent, Wachovia experienced a “silent run” on deposits, but the bigger worry for regulators [...] continue reading world news

U.S. loses 159,000 jobs in September, worst one-month drop in five years

WASHINGTON — As the presidential election season nears its climax, there is growing evidence that the country is slipping into the deepest recession in decades.The latest marker came Friday, when the government reported that employers shed 159,000 jobs in September, far more than expected. That was the worst one-month drop in more than five years [...] continue reading world news

What You Could Get for $700 Billion

The US Congress is going to take another stab at passing the gigantic bank bailout package on Friday. But how much money are we talking about? SPIEGEL ONLINE gives you an idea. $700 Billion. What else could be done with all those zeros? We have some ideas. (AFP)Money makes the world go round — and [...] continue reading world news

Citigroup Girds for Wachovia Takeover Battle With Wells Fargo

Oct. 4 (Bloomberg) — Citigroup Inc., hobbled by $61 billion of subprime-related losses, now faces its biggest takeover battle in a fight with Wells Fargo & Co. for control of Wachovia Corp.Citigroup fell as much as 21 percent yesterday in New York trading after Wells Fargo, the biggest U.S. bank on the West Coast, agreed [...] continue reading world news

World economic crisis: France moves into recession

The French premier, Francois Fillon, today warned that the world was “on the edge of the abyss” as his country moved into an official recession.Fillon’s comments, blaming an “irresponsible” financial system, came as the Dutch government seized control of bancassurer Fortis’s Netherlands operations in a €16.8bn (£13.06bn) deal greed with the Belgian and Luxembourg authorities.The [...] continue reading world news

Europe fights financial storm as bank deal collapses

Nicolas Sarkozy (C) flanked by Angela Merkel (L) and Gordon BrownPARIS (AFP) - The leaders of Europe’s four main economic powers vowed to protect fragile banks in their fight against the global credit crisis as the biggest rescue in German financial history collapsed.France, Germany, Britain and Italy put on a united front, promising a more [...] continue reading world news

Financial Crisis: Hypo Real Estate on brink of collapse

Another top European bank is on the brink of collapse after a consortium of German financial institutions withdrew from a state-led rescue plan agreed two days ago.Hypo Real Estate is the fifth German bank to be bailed out because of the credit crunch Photo: APHypo Real Estate (HRE), the second largest mortgage lender in [...] continue reading world news

Germany guarantees bank deposits

Chancellor Angela Merkel and Finance Minister Peer Steinbrück announcing their plan for Hypo Real Estate in Berlin on Sunday. (Pool photo by Rainer Jensen)FRANKFURT: As German leaders and bankers worked feverishly to rescue a lender considered too big to fail, the government announced Sunday that it would guarantee all private savings accounts in Germany - [...] continue reading world news

Iceland’s economy on brink as lender falters

ICELAND’S Kaupthing Bank is headquartered in Reykjavik, about 1800 kilometres from the City of London, but the financial volcano threatening to erupt on the island could send shockwaves down every high street in Britain.The bank, with liabilities several times larger than Iceland’s gross domestic product, runs accounts for 150,000 Britons. It is also a key [...] continue reading world news

BNP Paribas to take control of Fortis

FRENCH bank BNP Paribas has confirmed it has taken control of ailing finance group Fortis’s arms in Belgium and Luxembourg to create the “leading European bank in terms of deposits.”The deal, thrashed out over a weekend of intense talks, leaves the Belgian and Luxembourg governments with reduced holdings in Fortis, which they partly nationaised [...] continue reading world news

Global Stocks Tumble: $2.5 Trillion Global Equities Erased

Credit Crisis Widens Sam Farhood, left, and James Denaro work on the floor of the New York Stock Exchange prior to the Opening Bell in New York, on Oct. 6, 2008. Photographer: Andrew Harrer/Bloomberg News Oct. 6 (Bloomberg) — Stocks tumbled around the world, the euro fell the most against the yen since its debut [...] continue reading world news

Financial crisis: Stock market suffers its worst fall in history

The UK stock market has suffered its worst one-day fall in history as the banking crisis intensified.The FTSE-100 index of Britain’s biggest companies dropped by 391.06 points - its steepest ever fall - to end the day down 7.9 per cent.The FTSE’s tumble was mirrored across Europe, as markets in France, Germany, Italy and Spain [...] continue reading world news

Stricken Iceland sends out financial SOS

Economy is in turmoil as currency collapses and inflation soarsIceland was seeking the financial help of the US and Scandinavian countries last night as politicians and businessmen scrambled to save the country’s economy.Officials were locked in meetings for most of the weekend, with the Government hoping to come to some sort of resolution before stock [...] continue reading world news

Fed May See Companies, States as Next Crisis Fronts

Oct. 6 (Bloomberg) — Federal Reserve Chairman Ben S. Bernanke may find the next fronts of the financial crisis to be just as chilling as last month’s downfall of Wall Street titans: its spread to corporate America and state and local governments.Companies from Goodyear Tire & Rubber Co. and Duke Energy Corp. to Gannett Co. [...] continue reading world news

Lehman chief got $480M

Rep. Henry Waxman asks Lehman chief whether his hefty salary from the failed company is fair.Added: Oct. 06, 2008Source: YouTube continue reading world news

The Dollar is Doomed

When the precious metals were smashed out of nowhere and the dollar started climbing this summer I became very worried. I didn’t question my conviction that commodities are in a bull market, or that precious metals in particular are undervalued. I felt something sinister was at work. Neither move was justified on a fundamental level. [...] continue reading world news

Economic chaos creates surge in homelessness

CAMBRIDGE, Massachusetts (AP) — The number of homeless families in Massachusetts has surged — a spike that has overwhelmed the state’s shelter capacity and forced it to again place homeless families in motels.The number of homeless families living in Massachusetts motels skyrocketed in September 2008.Driving the increase is the sour economy, rising energy costs, escalating [...] continue reading world news

Bank shares plunge again in panicky trading

Shares in Britain’s banks plunged again amid panicky trading following emergency talks with the government over a possible injection of billions of pounds of taxpayers’ money into the banking sector.Royal Bank of Scotland nosedived by almost 40% to 90p in morning trading - its lowest point since the recession of the early 1990s. Barclays, Lloyds [...] continue reading world news

American financier kills his family and himself after losing fortune in credit crunch

Tragedy: A coroner’s assistant brings out a bodyA businessman gunned down five members of his family then shot himself after seeing his family’s fortune wiped out by the stock market collapse.Karthik Rajaram, 45, who had made almost £900,000 on the London stock market, shot his wife, three children and mother-in-law in the head before turning [...] continue reading world news

Pakistan facing bankruptcy

Pakistan’s foreign exchange reserves are so low that the country can only afford one month of imports and faces possible bankruptcy.An investor monitors the index at Karachi Stock Exchange in Karachi, Pakistan Photo: BLOOMBERGOfficially, the central bank holds $8.14 billion (£4.65 billion) of foreign currency, but if forward liabilities are included, the real reserves may [...] continue reading world news

Thursday is D-Day

Forget the stock market gyrations. Forget Bernanke and Paulson’s ineffective, unconstitutional schemes.Thursday’s auction for Lehman’s credit default swaps (CDS) is much more important.Why?Well, if banks are reassured by the CDS auction, it could do more to free up frozen capital than all of the Fed and Treasury’s ill-conceived plans put together.As Bill Gross, [...] continue reading world news

U.S. Stocks Drop; S&P 500, Dow Post Worst Retreats Since 1937

Ben S. Bernanke, chairman of the U.S. Federal Reserve, speaks on a television above a trader in the S&P pit at the Chicago Board of Trade in Chicago, on Tuesday Oct. 7, 2008. Photographer: Joshua Lott/Bloomberg NewsOct. 7 (Bloomberg) — U.S. stocks fell, sending the Standard & Poor’s 500 Index below 1,000 for the first [...] continue reading world news

Retirement accounts have lost $2 trillion

WASHINGTON - Americans’ retirement plans have lost as much as $2 trillion in the past 15 months - about 20 percent of their value - Congress’ top budget analyst estimated Tuesday as lawmakers began investigating how turmoil in the financial industry is whittling away workers’ nest eggs.The upheaval that has engulfed financial firms and sent [...] continue reading world news

AIG Executives Blow $440,000 After Getting Bailout

View from the Lobby Lounge TerraceIf you’d just gotten a government bailout, you might be tempted to hold a retreat at a nice California hotel — and that’s exactly what American International Group (AIG: 3.51, -0.36, -9.30%) executives did.The committee on Oversight and Government Reform held a hearing on Tuesday at [...] continue reading world news

Japan’s Nikkei plunges 9.4 percent on crisis fears

A passerby looks at the electronic stock board in front of a Tokyo brokerage Wednesday, Oct. 8, 2008 as Japan’s stock market plummeted 9.4 percent _ its biggest one-day drop in 21 years. The benchmark Nikkei 225 index nose-dived 952.58 points to 9,203.32, a five-year low. (AP Photo/Katsumi Kasahara)TOKYO (AP) - Japan’s stock market plummeted [...] continue reading world news

Fed, ECB, Central Banks Cut Rates in Coordinated Move

A security officer stands outside of the Federal Reserve building in Washington on Sept. 16, 2008. Photographer: Jay Mallin/Bloomberg NewsOct. 8 (Bloomberg) — The Federal Reserve, European Central Bank and four other central banks lowered interest rates in an unprecedented coordinated effort to ease the economic effects of the worst financial crisis since the Great [...] continue reading world news

Russia, Indonesia, Ukraine Shut Exchanges as Stock Rout Worsens

Oct. 8 (Bloomberg) — Russia, Indonesia, Ukraine and Romania shut their stock exchanges after shares plummeted in the worst week for emerging-markets in at least two decades.Russia’s Micex Index dropped 14 percent, having already slumped 20 percent this week, before trading stopped at 11:05 a.m. in Moscow. The exchange won’t reopen until Oct. 10 unless [...] continue reading world news

The bailout has failed

Libor for Overnight Dollar Loans Jumps as Credit Freeze Deepens Oct. 7 (Bloomberg) — The cost of borrowing in dollars overnight in London jumped as U.K. lenders held talks with the government on emergency funding and Iceland nationalized its second-biggest bank amid an unprecedented credit squeeze.The London interbank offered rate, or Libor, that banks [...] continue reading world news

How the crooked bailout was passed by Congress

Fraud, bribery and threats of violenceCongressman Sherman’s entire presentation The Wall Street Welfare ActThere was a simple solution the banking crisis:Guarantee ALL normal banking deposits. That’s what European countries are doing.With bank deposit guarantees, individuals and real businesses would have access to their money and to normal credit.But the White House took a different [...] continue reading world news

Remember 1929 – what seemed to be the end was only the beginning

Dick Fuld, former Lehman Brothers’ chief executive Photo: APThe dismemberment of Dick Fuld, Lehman Brothers’ former chief executive, before a Congressional committee on Monday was a compelling, albeit brutal, event.His televised humiliation was orchestrated by a veteran Democrat, Henry Waxman, whose simple question about Fuld’s alleged $480m of earnings - Is that fair? - [...] continue reading world news

Zeitgeist: Addendum

Related: Zeitgeist, The Movie, Final EditionAdded: Oct 3, 2008Source: Google Video continue reading world news

Central banks all but stop lending bullion

Central banks have all but stopped lending gold to commercial and investment banks and other participants in the precious metals market, in a move that on Tuesday sent the cost of borrowing bullion for one-month to more than twenty times its usual level.The one-month gold lease rate rocketed to 2.649 per cent, its highest level [...] continue reading world news

British banks rated less sound than Botswana’s

Business leaders in Britain rated UK banks a mere 44th in the world for solvency, well behind countries in Africa and Latin America including Senegal, Botswana, El Salvador - and even behind Iceland, whose three main banks have all been taken into national ownership after collapsing into financial turmoil this week.The United States was rated [...] continue reading world news

Bernanke, Paulson Seek Global Help as Crisis Spreads

Paulson yesterday signaled he’s considering pumping capital (=Taxpayers’ Money) into U.S. financial institutions, saying “we will use all of the tools we’ve been given to maximum effectiveness” under the $700 billion Troubled Asset Relief Program.______________________________________________________________________________Henry Paulson, secretary of the U.S. Treasury, left, and Ben S. Bernanke, chairman of the U.S. Federal Reserve, testify before the [...] continue reading world news

U.S. Treasury May Buy Stakes in Banks Within Weeks

Oct. 9 (Bloomberg) — The government is planning to buy stakes in a wide range of banks within weeks as the credit freeze increasingly threatens to tip the U.S. economy into a deep recession.Treasury Secretary Henry Paulson and top aides are still considering options on how the purchases would work, including having the government acquire [...] continue reading world news

GM, Ford, Chrysler Face Bankruptcy Risk on Crisis, S&P Says

Oct. 10 (Bloomberg) — General Motors Corp., Ford Motor Co. and Chrysler LLC, the three biggest U.S. automakers, may be forced into bankruptcy as the global credit freeze damps U.S. sales, Standard & Poor’s analyst Robert Schulz said.“Macro factors could overwhelm them at some point” even as GM, Ford and Chrysler vow to stick with [...] continue reading world news

Dow’s Worst Week Comes to an End

Stocks closed a volatile week with the widest intraday swing on record, in a fitting end to one of the most turbulent five-day periods in financial history.For the first time in its 112-year existence, the Dow Jones Industrial Average swung in a range of more than one thousand points on an intraday basis. The blue-chip [...] continue reading world news

Lehman Credit-Swap Auction: Biggest-ever payout in the $55 trillion market.

A woman speaks on a cell phone inside the headquarters of Lehman Brothers Holdings Inc., in New York, on Sept. 15, 2008. Photographer: Jeremy Bales/Bloomberg NewsOct. 10 (Bloomberg) — Sellers of credit-default protection on bankrupt Lehman Brothers Holdings Inc. will have to pay 91.375 cents on the dollar to settle the contracts, setting up [...] continue reading world news

Black Friday: Run on the System

Stock markets across the world are in a state of hysteria. The tidal wave of sell-offs, which began when Henry Paulson announced the Bush administration’s $700 billion bailout plan for the sinking banking system, has swelled into a global tsunami racing round the globe.Shares fell sharply across Europe and Asia for the fifth straight day [...] continue reading world news

Bonds dry up as funding source; Some government projects on hold

Local governments seeking money for roads, schools and a host of other projects are finding it difficult to secure financing, leading some to put those projects on hold.The demand from investors for municipal bonds has dropped off a cliff in the past couple of weeks, sending interest rates higher and making it more expensive for [...] continue reading world news

Lehman Brothers demise triggers huge default

Lehman Brothers, the bust investment bank, triggered one of the biggest corporate debt defaults in history yesterday as it emerged that the US Federal Reserve is harbouring grave concerns about whether Washington’s $700 billion (£413 billion) bailout fund will avert a financial meltdown.An auction of Lehman’s bonds yesterday determined that the bank’s borrowings were worth [...] continue reading world news

Fannie, Freddie to Buy $40 Billion a Month of Troubled Assets

Oct. 11 (Bloomberg) — Federal regulators directed Fannie Mae and Freddie Mac to start purchasing $40 billion a month of underperforming mortgage bonds as the Bush administration expands its options to buy troubled financial assets and resuscitate the U.S. economy, according to three people briefed about the plan.Fannie and Freddie began notifying bond traders last [...] continue reading world news

With Spotlight on Pirates, Somalis on Land Waste Away in the Shadows

Above, a severely malnourished baby lay unresponsive on Thursday as the mother and father sat nearby in a feeding center in Afgooye, Somalia.AFGOOYE, Somalia - Just step into a feeding center here, and the sense of hopelessness is overwhelming.Dozens of women sit with listless babies in their laps, snapping their fingers, trying to get a [...] continue reading world news

A £516 trillion derivatives time-bomb

Not for nothing did US billionaire Warren Buffett call them the real ‘weapons of mass destruction’The market is worth more than $516 trillion, (£303 trillion), roughly 10 times the value of the entire world’s output: it’s been called the “ticking time-bomb”.It’s a market in which the lead protagonists - typically aggressive, highly educated, and now [...] continue reading world news

UK: Government to save HBOS and RBS

Government set to become biggest shareholder in top banks as Japanese weigh bid for Morgan StanleyTHE government will launch the biggest rescue of Britain’s high-street banks tomorrow when the UK’s four biggest institutions ask for a £35 billion financial lifeline.The unprecedented move will make the government the biggest shareholder in at least two banks.Royal Bank [...] continue reading world news

Financial crisis: Countries at risk of bankruptcy from Pakistan to Baltics

A string of countries face the risk of “going bust” as financial panic sweeps Asia, Eastern Europe, and Latin America, raising the spectre of a strategic crisis in some of the world’s most dangerous spots.Nuclear-armed Pakistan is bleeding foreign reserves at an alarming rate leading to fears that it could default on its loans.There are [...] continue reading world news

Germany’s Car Industry Crashes

For years, Germany Inc.’s best promotional vehicles have been the world-class luxury cars the country produces. Shiny Audi, BMW and Mercedes-Benz cars are like mobile billboards for excellence, from New York to Moscow, Buenos Aires to Shanghai.But as the global financial crisis begins to take its toll on the real economy, Germany’s export machine has [...] continue reading world news

Only state intervention can save us now, says Merkel

BERLIN: Only the state can restore trust to financial markets now, German Chancellor Angela Merkel was quoted as saying on Sunday amid reports that Berlin was about to unveil a huge rescue package for its banks.“Only action by the state is capable of restoring the necessary trust,” Merkel was quoted as saying by the Bild [...] continue reading world news

Germans Stockpiling Gold Amid Market Panic

Gold dealers can’t keep up with the demandGerman gold dealers have stopped taking new orders for the precious metal as demand has skyrocketed. Gold is seen as a safe investment during the market turmoil.In uncertain economic times, Germans are dumping stocks and shares to take refuge in precious metal, accoring to a Wednesday article in [...] continue reading world news

States warned about impending mortgage crisis

Bush administration, financial industry thwarted efforts to curb greedMore than five years ago, in April 2003, the attorneys general of two small states traveled to Washington with a stern warning for the nation’s top bank regulator. Sitting in the spacious Office of the Comptroller of the Currency, with its panoramic view of the capital, the [...] continue reading world news

JIM ROGERS: GLOBAL BANKERS HAVE UNLEASHED INFLATIONARY HOLOCAUST

Legendary investor Jim Rogers warned during a CNBC interview this morning that global central banks are creating the environment for an inflationary holocaust by their ceaseless overprinting of currency, a measure that isn’t even successful in stabilizing the stock market.Rogers said that the only solution to the market crisis was to let failing banks and [...] continue reading world news

EU Nations Commit 1.3 Trillion Euros to Bank Bailouts

Oct. 13 (Bloomberg) — France, Germany, Spain, the Netherlands and Austria committed 1.3 trillion euros ($1.8 trillion) to guarantee bank loans and take stakes in lenders, racing to prevent the collapse of the financial system.The announcements came as Britain took majority stakes today in Royal Bank of Scotland Group Plc and HBOS Plc. The coordinated [...] continue reading world news

Europe to US: You messed up the rescue, too

The plans for a massive bank bailout by European governments differ strikingly from the U.S. approach.PARIS (Fortune) — First you mess up the world’s financial system. Then you blow the rescue of it. Now let’s show you how to do it properly.That, in a nutshell, is the less-than-flattering message European governments are sending to the [...] continue reading world news

Icelandic Shoppers Splurge as Currency Woes Reduce Food Imports

Reykjavik, Iceland, on Monday, Oct. 13, 2008. After a four-year spending spree, Icelanders are flooding the supermarkets one last time, stocking up on food as the collapse of the banking system threatens to cut the island off from imports. Photographer: Arnaldur Halldorsson/Bloomberg NewsOct. 13 (Bloomberg) — After a four-year spending spree, Icelanders are flooding the [...] continue reading world news

UK: Trains, water and power may be next in line for a bail-out

The chancellor must take emergency steps to prevent rail, water and power companies going bust in the global economic storm, former cabinet minister Peter Hain has warned.Hain, the former work and pensions secretary, urged the government to draw up reserve powers that could be used in the event of a major utility collapsing and taking [...] continue reading world news

U.S. Is Investing $250 Billion in Banks

Treasury Chief Says Banks Must Deploy New CapitalTreasury Secretary Henry M. Paulson Jr., speaking in Washington on Tuesday morning, described the government’s bailout as “extensive, powerful and transformative.” The Federal Reserve chairman, Ben S. Bernanke, is at right.WASHINGTON - Describing the government’s financial bailout plan as “extensive, powerful and transformative,” Treasury Secretary Henry M. [...] continue reading world news

GM to hasten factory closings

Wis. plant, Grand Rapids affectedGeneral Motors announced Monday that it will idle its Janesville, Wis., SUV factory on Dec. 23.(2005 photo by Janesville Gazette via AP)General Motors Corp. announced Monday that it will close its Grand Rapids stamping plant in December 2009 and accelerate the closing of its Janesville, Wis., assembly plant by more than [...] continue reading world news

Iceland shares plunge 76% as trading resumes

Shares on the Reykjavik stock exchange plunged by 76 per cent when trading resumed after three days of closure as Iceland’s economy continued to teeter on the brink of collapse.Shares later recovered to leave the OMX Iceland 15 index down 47 per cent in morning trade.Market officials said the astounding figure was misleading since the [...] continue reading world news

Wall Street Turns South

Most U.S. Stocks Fall as Earnings Concern Overshadows Bank Plan Oct. 14 (Bloomberg) — Most U.S. stocks fell a day after the market’s biggest rally since the 1930s as a worsening outlook for earnings forced investors to look beyond a $2 trillion global push to rescue banks.PepsiCo lost as much as 14 percent, the [...] continue reading world news

Why should gold stop at $1,500?

LONDON (MarketWatch) — Euphoria over bank bailouts and the temporarily buoyant stock markets is masking a sober reality.The piper still has to be paid.One fairly sanguine estimate of the cost of salvaging Wall Street came Tuesday morning from analysts at Merrill Lynch. They figure the inflationary effect of all the bank bailout measures now underway [...] continue reading world news

U.S. 2008 Budget Deficit at Record $455 Billion

Oct. 14 (Bloomberg) — The U.S. government posted a record budget deficit for 2008 as financial market strains slowed economic growth and spending rose the most since 1990.The shortfall widened to $455 billion in the fiscal year ended Sept. 30, compared with a $162 billion deficit a year earlier and the previous high of $413 [...] continue reading world news

The 56 Trillion Dollar Deficit

Bill Maher Interviews Fmr. Comptroller General David Walker about the huge deficit in America.Source: YouTube(CNN) — The Emergency Economic Stabilization Act contains plenty to make lawmakers on the left and right shudder. On the right, it’s the apparent abandonment of free-market principles. On the left, it’s the absence of punishment for high-flying Wall Street CEO’s.Looking [...] continue reading world news

Smaller Banks Resist Federal Cash Infusions

Community banking executives around the country responded with anger yesterday to the Bush administration’s strategy of investing $250 billion in financial firms, saying they don’t need the money, resent the intrusion and feel it’s unfair to rescue companies from their own mistakes.But regulators said some banks will be pressed to take the taxpayer dollars anyway. [...] continue reading world news

JPMorgan Net Income Drops 84 Percent on Writedowns

Oct. 15 (Bloomberg) — JPMorgan Chase & Co., the largest U.S. bank by market value, said third-quarter profit fell 84 percent on about $5.8 billion of writedowns, losses and credit provisions.Net income dropped to $527 million, or 11 cents a share, from $3.4 billion, or 97 cents, a year earlier, the New York- based bank [...] continue reading world news

Unemployment to hit three million within a year as it rises at fastest rate for 17 years

Cuts: Unemployment rose by 164,000 in the three months up to August and could hit two million by Christmas as the credit crunch hits homeUnemployment could hit three million by the end of next year to levels not seen since John Major was in power as Britain battles recession, it was warned today.The rate [...] continue reading world news

CNN’s Glenn Beck and Peter Schiff: Inflation Nation and Martial Law

Added: Oct. 13, 2008Source: YouTube continue reading world news

U.S. Stocks Drop Most Since Crash of 1987 on Recession Concerns

A trader looks up at monitor while working on the floor of the New York Stock Exchange in New York on Oct. 15, 2008. Photographer: Jin Lee/Bloomberg NewsOct. 15 (Bloomberg) — U.S. stocks plunged the most since the crash of 1987, hammered by the biggest drop in retail sales in three years and growing doubt [...] continue reading world news

Japan Stocks Drop Most in 21 Years as Recession Concerns Mount

Pedestrians walk past an electronic stock board in Tokyo, Oct. 16, 2008. Photographer: Tomohiro Ohsumi/Bloomberg NewsOct. 16 (Bloomberg) — Japanese stocks plunged the most in two decades as a drop in U.S. retail sales pointed to a deepening recession and Prime Minister Taro Aso reinforced concern a bank bailout will fail to stem a rout [...] continue reading world news

Switzerland Bails Out UBS; Credit Suisse Raises Funds

Pedestrians walk past a branch of the UBS bank in Bern, Switzerland, on Thursday, Oct. 2, 2008. Photographer: Adrian Moser/Bloomberg NewsOct. 16 (Bloomberg) — Switzerland gave UBS AG, the European bank with the biggest losses from the credit crisis, a $59.2 billion rescue and pushed Credit Suisse Group AG to raise funds, joining authorities around [...] continue reading world news

Crisis spreads to Eastern Europe as Ukraine, Hungary and Serbia call IMF

Ukraine, Hungary, and Serbia are all in emergency talks with the International Monetary Fund, raising fears that an exodus of foreign investors will set off a systemic crisis across Eastern Europe.A team of IMF trouble-shooters rushed to Kiev on Wednesay to draw up a possible standby loan to help Ukraine stabilize its bank after a [...] continue reading world news

Financial crisis: Moscow supermarket shelves increasingly empty in Soviet era reminder

Russian shoppers have been served an uncomfortable reminder of the Soviet era after finding shelves in some Moscow supermarkets empty, a further sign that the woes of the financial markets have begun to affect the mainstream economy. For a generation of Russians who queued daily in the snow for the most basic of staples, the [...] continue reading world news

Hedge funds shake in the teeth of financial storm

Thousands of hedge funds are expected to go bust in the next few months, amid fears that the secretive sector of the financial industry will be the next to buckle under the pressure of global market turmoil.Tumbling stock markets and a reluctance among banks to do business with hedge funds has further worked against an [...] continue reading world news

Banks Hoard Cash as Credit Card Defaults Rise

Consumers are increasingly unable to pay off their credit cards, forcing banks to hoard cash to protect against future losses and lend to fewer people, according to reports yesterday from several of the nation’s largest banks.These financial disclosures showed a spike in credit card loans going bad, putting further pressure on already-stressed balance sheets. J.P. [...] continue reading world news

GM chief running out of time and options

If Rick Wagoner, chairman and chief executive of General Motors, fails to get a merger deal, he could go down in history as the executive who presided over GM’s demise. (Rick Wilking/Reuters)DETROIT: Rick Wagoner is running short of time and options to save General Motors and salvage his legacy as the leader of the [...] continue reading world news

Run on Russian bank heightens fears

Globex on Wednesday banned depositors from withdrawing their money as confidence in the Russian banking system began to show signs of evaporating.Globex, a mid-sized retail bank with assets of $4bn (€2.95bn, £2.32bn), is the first Russian bank to experience a run on deposits during the crisis. It lost 13 per cent of its deposits last [...] continue reading world news

Banks borrow record $437.5 billion per day from Fed

A trader counts his money on the floor of the New York Stock Exchange October 7, 2008. REUTERS/Brendan McDermidNEW YORK (Reuters) - Financial institutions ran to their lender of last resort for record amounts of cash in the latest week, under extreme pressure from the worst global financial crisis in a generation, Federal Reserve data [...] continue reading world news

Financial crisis: Christine Lagarde warned Hank Paulson to bail out Lehman Brothers

Christine Lagarde, the French finance minister, warned her US counterpart Hank Paulson that he had to bail out US investment bank Lehman Brothers or face global financial collapse, but her advice went unheeded.Christine Lagarde, the French finance minister, warned her US counterpart Hank Paulson that he must bail out US investment bank Lehman Brothers or [...] continue reading world news

Probe of Lehman collapse escalated: NYT

NEW YORK (Reuters) - Prosecutors have stepped up the investigation into the collapse of Lehman Brothers, with at least a dozen subpoenas being issued including one to the investment bank’s chief executive, Richard Fuld, The New York Times reported on Saturday.Citing people close to the probe who requested anonymity, the Times said federal prosecutors in [...] continue reading world news

Lahde quits hedge funds, thanking “stupid” traders for making him rich.

NEW YORK, Oct 17 (Reuters) - Andrew Lahde, the hedge fund founder who shot to fame with his small fund that soared 870 percent last year on bets against U.S. subprime home loans, has called it quits, thanking “stupid” traders for making him rich.In a biting, but humorous letter to investors posted on the website [...] continue reading world news

Hedge Fund Manager: Goodbye and F—- You

From the Scorched Earth Files:Andrew Lahde, manager of a small California hedge fund, Lahde Capital, burst into the spotlight last year after his one-year-old fund returned 866 percent betting against the subprime collapse.Last month, he did the unthinkable — he shut things down, claiming dealing with his bank counterparties had become too risky. Today, Lahde [...] continue reading world news

Citigroup’s $13bn writedown raises fears of a crisis beyond Wall Street

America’s leading banks continued to announce hefty losses yesterday as Citigroup reported a further writedown of more than $13 billion (£7.5 billion) for the third quarter and Merrill Lynch took another $9.5 billion hit.The latest writedowns brought Citigroup’s total hit from the credit crunch to about $60 billion and left it with an overall group [...] continue reading world news

Gradient close to collapse as hedge funds feel heat

One of London’s best known hedge funds, Gradient Capital Partners, is on the brink of collapse after dropping nearly 42pc in value last month. The City-based European equity fund, which had $2.5bn under management at its peak, is now down over 63pc so far this year, leaving investors fearful it will be forced to close.The [...] continue reading world news

US hedge funds suffer heavy withdrawals

Investors pulled at least $43bn from US hedge funds in September as market turmoil led to unprecedented withdrawals, an analysis by a leading research house shows.The data from TrimTabs Investment Research - which was to be sent to clients late on Wednesday - come as hedge funds are working to prevent far bigger redemptions by [...] continue reading world news

Birmingham on the brink of bankruptcy

With $3.2 billion in debt, the county that is home to Alabama’s largest city is about to go bust. How the credit crisis went South.(Fortune Magazine) — Bob Riley wanted to help. It was Sunday, Oct. 5, and the Alabama governor was on the phone with Neel Kashkari, a Treasury Department official who the next [...] continue reading world news

Feds investigate Washington Mutual failure

A sign at a Washington Mutual Bank (WaMu) branch is shown in San Francisco, California September 26, 2008. REUTERS/Robert GalbraithNEW YORK (Reuters) - Federal investigators have opened an investigation into the collapse of Washington Mutual Inc, the largest U.S. banking failure.Jeffrey Sullivan, U.S. attorney for the western district of Washington, said in a statement on [...] continue reading world news

Whistleblower: Oil watchdog agency ‘cult of corruption’

HONOLULU, Hawaii (CNN) — Bobby Maxwell kept a close eye on the oil industry for more than 20 years as a government auditor. But he said the federal agency he worked for is now a “cult of corruption” — a claim backed up by a recent government report.Bobby Maxwell, a long-time auditor of the [...] continue reading world news

Roubini: US Will Suffer Worst Recession in 40 Years

Oct. 14 (Bloomberg) — Nouriel Roubini, the professor who predicted the financial crisis in 2006, said the U.S. will suffer its worst recession in 40 years, driving the stock market lower after it rallied the most in seven decades yesterday.“There are significant downside risks still to the market and the economy,” Roubini, 50, a New [...] continue reading world news

Europe stuns with €1.5 trillion bank rescue, as France plays role of saviour

Germany, France, Italy, Spain, Holland and Austria have joined forces to launch the greatest bank bail-out in history, offering over €1.5 trillion in guarantees and fresh capital in a “shock and awe” blitz to halt the credit panic.French President Nicolas Sarkozy Photo: PHILIPPE WOJAZERThe move - unveiled simultaneously in the six states to maximise [...] continue reading world news

Why Gold Is Dropping When It Shouldn’t - and what it all means

Why is gold dropping right now when anyone in their sane mind would expect it to rise? The simple answer to this question is, “because Comex-gold isn’t gold” - and because it deceptively pretends to be ‘the’ price-setter for real gold.Gold is gold, paper is paper, and “Comex gold” is nothing but paper masquerading as [...] continue reading world news

Fed Lets Europe Central Banks Offer Unlimited Dollars, Removes Swap Limits

Fed Releases Flood of Dollars, Market Rates FallOct. 13 (Bloomberg) — The Federal Reserve led an unprecedented push by central banks to flood the financial system with as many dollars as banks want, backing up government efforts to revive confidence and helping to reduce money-market rates.The European Central Bank, the Bank of England and the [...] continue reading world news

Austria witnesses new gold rush

There’s a new gold rush.The financial crisis is prompting people to look for safer forms of investment than stocks and shares. Both international speculators and ordinary Austrians want to get their hands on goldThe interest in gold coins is so great that many of the world’s major mints are struggling to keep up with demand, [...] continue reading world news

Ten people who predicted the financial meltdown

The financial events of recent weeks have filled many of us with shock and panic. Surely no one could have predicted that we would be in this mess? Well, actually, they did. Here are ten people who saw the financial meltdown coming…1. Vince Cable - deputy leader of the Liberal DemocratsHere is a question Mr [...] continue reading world news

Glenn Beck: There is a global meltdown coming. It is a global depression.

CNN’s Glenn Beck warns of the New World Order“There is a global meltdown coming. It is a global depression. And one world currency and one world financial system is the endgame… China said last week they want one global currency. France said yesterday they want one world order - a ‘New World Order’ at the [...] continue reading world news

What is to be Done? A Possible Solution to the Economic Crisis

By PAUL CRAIG ROBERTSReaders have been pressing for a solution to the financial crisis. But first it is necessary to understand the problem. Here is the problem as I see it. If my diagnosis is correct, the solution below might be appropriate.Let’s begin with the fact that the financial crisis is more or less worldwide. [...] continue reading world news

Two banks fold, bringing total to 15 failures this year

SAN FRANCISCO (MarketWatch) — Northville, Mich.-based Main Street Bank and Eldred, Ill.-based Meridian Bank became the latest victims of the ongoing financial crisis on Friday, when they folded and their deposits were transferred by the Federal Deposit Insurance Corp.The closures are the 14th and 15th bank failures so far this year.The FDIC said in a [...] continue reading world news

Dow plunges 679 to fall to lowest level in 5 years

NEW YORK - Stocks plunged in the final hour of trading Thursday, sending the Dow Jones industrial average down 679 points - more than 7 percent - to its lowest level in five years after a major credit ratings agency said it might cut its rating on General Motors Corp.The Standard & Poor’s 500 index [...] continue reading world news

Mutual Fund Withdrawals a Record as Investors Flee

Oct. 9 (Bloomberg) — Investors pulled a record $52.1 billion from U.S.-managed stock and bond mutual funds in the past week, seeking the safety of government-insured bank deposits as the financial crisis worsened.Shareholders took $43.3 billion from stock funds and $8.8 billion from bond funds in the week ended Oct. 8, according to data compiled [...] continue reading world news

Indonesia Keeps Stock Exchange Closed

Traders walk on the trading floor as the market is suspended at the Indonesia Stock Exchange in Jakarta, 09 Oct 2008Indonesia closed its stock exchange for the second day to halt a flurry of selling that sent the main stock index plummeting more than 20 percent this week, while Asian trading ended mixed. VOA’s Nancy-Amelia [...] continue reading world news

Paulson: “Some financial institutions will fail.”

Dow slides 189 points despite global interest rate cutsDow Jones Industrial Average falls for six successive days, losing 14.7% of its valueSpecialists check a screen on the floor of the New York Stock Exchange on Wednesday. Photograph: Richard Drew/APA gloomy day on Wall Street ended with another plunge in stocks after the US treasury secretary, [...] continue reading world news

Brown and Darling commit £500 billion for bank bailout

Gordon Brown and Alistair Darling set out a radical £500 billion package today to restore confidence in the UK banking sector and break the crippling logjam in credit markets.The three-part package includes committing up to £50 billion of taxpayer funds for a partial nationalisation of stricken banks, met from increased public borrowing and with political [...] continue reading world news

Financial Crisis: Rush for gold as savers queue for bullion

Savers have been queuing in the street to buy gold bars and coins, as they search for a safe place to invest their money.Traditionally, gold has been one of the safest investments during times of financial turmoil Photo: APLondon’s two leading bullion dealers, ATS Bullion and Baird & Co, have reported a rush of [...] continue reading world news

US Mint halts some American Eagle coin production

NEW YORK, Oct 7 (Reuters) - Unprecedented demand for precious metals and volatile markets forced the U.S. Mint to cease production for the half-ounce and quarter-ounce popular American Eagle gold coins for the rest of this year and to supply other bullion coins on an allocation basis.“Due to the extreme fluctuating market conditions for 2008, [...] continue reading world news

Trading in Icelandic banks halted pending announcement

Trading in the shares of Icelandic banks was suspended in Reykjavik ahead of an announcement and because of concerns over the pricing of their shares.Icelandic Prime Minister Geir Haarde is facing a financial meltdownThe suspension covers trading in all financial instruments issued by Kaupthing, Landsbanki, Glitnir, the Icelandic lender bailed out by the government after [...] continue reading world news

Fed will provide as much as $900 in loans to banks

WASHINGTON (AP) - The Federal Reserve will provide as much as $900 billion in cash loans to squeezed banks in an urgent effort Monday to break through a dangerous credit clog that threatens the economy and has unhinged financial markets around the globe.The Fed’s action is aimed at spurring spooked financial institutions, which are hoarding [...] continue reading world news

Ron Paul on CNN: This Country Is Bankrupt

Added: Oct. 5, 2008Source: YouTube continue reading world news

America: Freedom to Fascism - Director’s Authorized Version

Source: Google Video“Born in Brooklyn and raised on Long Island, Aaron Russo began promoting rock and roll shows at local theaters while still a high school student.From there, he worked for his family’s business, opened a night club in Chicago where he helped create the careers of such legendary acts as Led Zeppelin, The Who, [...] continue reading world news

Financial Crisis: Fortis’ Dutch assets are nationalised

The Dutch operations of Fortis, Europe’s largest victim of the credit crisis, have been nationalised in a €16.8bn (£13bn) deal aimed to calm investors in the troubled banking and insurance group.Fortis is Europe’s largest victim of the credit crisis Photo: AFP The Netherlands government stepped in to take over the assets, including buying Fortis’ [...] continue reading world news

Prof. Feldstein: The bailout bill doesn’t get at the root of the credit crunch

The Problem Is Still Falling House PricesA successful plan to stabilize the U.S. economy and prevent a deep global recession must do more than buy back impaired debt from financial institutions. It must address the fundamental cause of the crisis: the downward spiral of house prices that devastates household wealth and destroys the capital of [...] continue reading world news

Bush Signs Bailout After House Passage

WASHINGTON — President George W. Bush signed the biggest government intervention in the financial markets since the Great Depression after U.S. House of Representatives lawmakers wary of growing signs of the nation’s economic distress voted Friday in favor of a $700 billion Wall Street rescue package.President Bush is greeted by Treasury Secretary Henry Paulson after [...] continue reading world news

Half of Zimbabwe dependent on aid, says UN humanitarian chief

UN calls for increased farming production to prevent an extra 2 million people becoming reliant on food and medical aidAlmost half the population of Zimbabwe could soon be dependent on food and medical aid, the UN’s humanitarian chief said today.John Holmes, the UN’s under-secretary general for humanitarian affairs, said that around 3 million people were [...] continue reading world news

Life in Zimbabwe: Wait for useless money

At a bank in Harare, Zimbabwe, this week, the police directed customers trying to withdraw their nearly worthless savings. (Associated Press)HARARE, Zimbabwe: Long before the rooster in their dirt yard crowed, Rose Moyo and her husband rolled out of bed. “It is time to get up,” intoned the robotic voice of her cellphone. Its glowing [...] continue reading world news

The Elephant in the Room: Credit Default Swaps

Studies show that people often fear the wrong things. We are terrified of things which probably won’t hurt us, but blissfully unconcerned with things that might really kill us (see this, this and this). So we put a tremendous amount of energy into solving non-problems, and get blindsided by things that we don’t know about [...] continue reading world news

Ford’s September sales drop 34 percent

Tight credit, economic worries and high gasoline prices auto purchasesDETROIT - Tight credit, economic worries and high gasoline prices combined to cut Ford Motor Co.’s U.S. sales once again in September, with the beleaguered automaker reporting a 34 percent decline from the same month last year.It was Ford’s worst sales month this year, and the [...] continue reading world news

U.S. Factories Contracted at Faster Pace in September

Oct. 1 (Bloomberg) — Manufacturing in the U.S. contracted in September at the fastest pace since the last recession as sales slowed, signaling the credit crisis is spreading beyond Wall Street.The Institute for Supply Management’s factory index dropped to 43.5, the lowest level since October 2001 and less than economists anticipated, the Tempe, Arizona-based group [...] continue reading world news

Senate May Try to Revive Financial-Rescue Legislation

U.S. Senator Christopher Dodd, chairman of the Senate Banking Committee, left, and Senator Judd Gregg, a Republican from New Hampshire, speak to reporters at the U.S. Capitol in Washington, Sept. 29, 2008. Photographer: Jay Mallin/Bloomberg NewsSept. 30 (Bloomberg) — The U.S. Senate will try to salvage a $700 billion financial-rescue package after the measure was [...] continue reading world news

Financial crisis: Mortgage lending plunges 95 per cent as housing market suffers

The value of mortgages lent to British homebuyers fell 95 per cent last month, according to the Bank of England.Mortgage approvals hit a record low after banks tightened lending Photo: PAIt said mortgage lending dived to just £143 million during August - its lowest since this data was first collected in April 1993 and [...] continue reading world news

Ron Paul: We are on the verge of destroying a worldwide economy

Added: Sept. 29, 2008Source: YouTube continue reading world news

FDIC Announces Citigroup to Buy Wachovia

Citigroup has agreed to buy Wachovia bank in a deal brokered by the Federal Deposit Insurance Corporation to avoid another major corporate failure in the midst of the ongoing financial crisis.The FDIC announced the deal on its Web site this morning. No price for the transaction was included in the announcement. But the FDIC said [...] continue reading world news

Fortis Gets EU11.2 Billion Rescue From Governments

Sept. 29 (Bloomberg) — Fortis, the largest Belgian financial-services firm, received an 11.2 billion-euro ($16.3 billion) rescue from Belgium, the Netherlands and Luxembourg after investor confidence in the bank evaporated last week.Belgium will buy 49 percent of Fortis’s Belgian banking unit for 4.7 billion euros, while the Netherlands will pay 4 billion euros for a [...] continue reading world news

U.K. to Protect Bradford & Bingley; BBC Reports Nationalization

Sept. 28 (Bloomberg) — The U.K. government will act to protect Bradford & Bingley Plc customers, Chief Whip Geoff Hoon said after the British Broadcasting Corp. reported the country’s biggest lender to landlords will be taken over by the state. Prime Minister Gordon Brown and Chancellor of the Exchequer Alistair Darling “have worked right [...] continue reading world news

Markets face major crash if US bail-out plan collapses

There will be a depression anyway, but if the bailout “succeeds” there will be a complete meltdown in the not too distant future. Again the elite is pressing the fear button._____________________________________________________________________________World markets depend on Paulson’s plan Photo: GETTY London shares could lose a fifth of their value and the money market faces collapse unless [...] continue reading world news

Bailout can’t hide it - the United States is broke

By Chris PowellCHRIS POWELL IS MANAGING EDITOR OF THE JOURNAL INQUIRER IN MANCHESTER.Even leading Republicans in Congress, including presidential nominee Sen. John McCain, recoiled from Treasury Secretary Henry M. Paulson’s proposal to take absolute power over $700 billion to be borrowed by the federal government and used to purchase every sort of bad debt without [...] continue reading world news

WaMu shares plummet 25%

WaMu Said to Approach Blackstone as Bailout DebatedSept. 25 (Bloomberg) — Washington Mutual Inc.’s options may be dwindling as potential bidders shy away from making an offer because it’s not clear how much the proposed $700 billion U.S. bank rescue package will benefit the Seattle-based lender.Five banks that were considering bids, including JPMorgan Chase & [...] continue reading world news

WaMu: The biggest bank failure in U.S. history.

JPMorgan Buys WaMu Bank Business as Thrift SeizedSept. 25 (Bloomberg) — JPMorgan Chase & Co., the third- biggest U.S. bank by assets, agreed to acquire Washington Mutual Inc.’s deposits and branches for $1.9 billion after regulators seized the thrift in the biggest bank failure in U.S. history.Customers withdrew $16.7 billion from WaMu accounts since Sept. [...] continue reading world news

Hundreds of Economists Urge Congress Not to Rush on Rescue Plan

Sept. 25 (Bloomberg) — More than 150 prominent U.S. economists, including three Nobel Prize winners, urged Congress to hold off on passing a $700 billion financial market rescue plan until it can be studied more closely.In a letter yesterday to congressional leaders, 166 academic economists said they oppose Treasury Secretary Henry Paulson’s plan because it’s [...] continue reading world news

Eurozone falls into recession

The eurozone has fallen into recession, with industry particularly badly hit by the fall-out from global economic turmoil, results of a closely watched survey indicated on Tuesday.Private sector output in the 15-country region contracted in September for the fourth consecutive month, according to eurozone purchasing managers’ indices. The pace of decline was the fastest since [...] continue reading world news

UK: COST OF BREAD AND BUTTER UP 43%

INCREASE: Bread price has soaredTHE cost of basic foods has soared by nearly 10 times the official inflation rate.A loaf of sliced white bread and a packet of butter now add up to £2.33 - a 43 per cent rise from £1.62 last year.Eggs are up 27 per cent at £2.90 a dozen, cheddar cheese [...] continue reading world news

Ron Paul: Bailouts will lead to rough economic ride

By Ron PaulSpecial to CNNRep. Ron Paul says the government’s solution to the crisis is the same as the cause of it — too much government.(CNN) — Many Americans today are asking themselves how the economy got to be in such a bad spot.For years they thought the economy was booming, growth was up, job [...] continue reading world news

Democrats and Republicans alike sceptical of Bush bailout plan

Federal Reserve chairman Ben Bernanke folds his hands while testifying with US Treasury secretary Henry Paulson before the Senate banking committee on Tuesday. Photograph: Charles Dharapak/APThe proposed $700bn bailout of US financial markets faced harsh criticism in Congress today, with liberals and conservatives both sceptical that granting the Bush administration power to buy up risky [...] continue reading world news

Goldman Sachs and Morgan Stanley have been put under Federal control

Morgan Stanley headquarters in New YorkInvestment banks Goldman Sachs and Morgan Stanley have been put under Federal control as part of a package aimed at rescuing the US finance system.The move not only puts the two financial services giants under the direct supervision of bank regulators but also gives the Fed the power to force [...] continue reading world news

Mushroom Clouds Over Wall Street

By MIKE WHITNEY“One bank to rule them all;One bank to bind them…”These are dark times. While you were sleeping the cockroaches were busy about their work, rummaging through the US Constitution, and putting the finishing touches on a scheme to assert absolute power over the nation’s financial markets and the country’s economic future. Industry [...] continue reading world news

America Versus the Financial Elite

The people don’t want it (see this poll showing that only 28% support the bailout; and see this).Most economists don’t want it (see this and this).Many congress people don’t want it (see here and here).So who wants the bailout?The only people who want it are the big money boys, the ultra elite, including the Wall [...] continue reading world news

Treasury Seeks Asset-Buying Power Unchecked by Courts!

Sept. 21 (Bloomberg) — The Bush administration sought unchecked power from Congress to buy $700 billion in bad mortgage investments from financial companies in what would be an unprecedented government intrusion into the markets.Through his plan, Treasury Secretary Henry Paulson aims to avert a credit freeze that would bring the financial system and the world’s [...] continue reading world news

Wall Street’s Big Banking Boys Are Bankrupting America (Rep. Kapture)

Source: YouTube continue reading world news

Paulson Bailout Plan a Historic Swindle

Financial-market wise guys, who had been seized with fear, are suddenly drunk with hope. They are rallying explosively because they think they have successfully stampeded Washington into accepting the Wall Street Journal solution to the crisis: dump it all on the taxpayers. That is the meaning of the massive bailout Treasury Secretary Henry Paulson has [...] continue reading world news

Bush wants OK to spend $700.000.000.000

Bailout proposal sent to Congress seeks authorization to spend as much as $700 billion to buy troubled mortgage-related assets.NEW YORK (CNNMoney.com) — President Bush has asked Congress for the authority to spend as much as $700 billion to purchase troubled mortgage assets and contain the financial crisis.The legislative proposal - the centerpiece of what would [...] continue reading world news

US Taxpayer: A Giant Dumpster For Illiquid Assets

Paulson, Bernanke, and Congress are conspiring to make the US taxpayer the fall guy for financial stupidity by banks and brokers. Congress is now willing to ram through legislation at the last moment, even though Senate Majority Leader Reid Says “No One Knows What to Do”.Please consider Paulson, Bernanke Push New Proposal to Cleanse [...] continue reading world news

Ron Paul on the Global Financial Crisis 9/18/08

Added: Sept. 18, 2008Source: YouTube continue reading world news

Stocks rally on report of entity for bad debt

Stocks end sharply higher on report that government will create entity to hold banks’ debtNEW YORK (AP) — Wall Street rallied in a stunning late-session turnaround Thursday, shooting higher and hurtling the Dow Jones industrials up 400 points following a report that the federal government might create an entity to absorb banks’ bad debt. The [...] continue reading world news

Fed, ECB, Bank of Japan Lead Global Plan to Pump $247 Billion Into Markets

Sept. 18 (Bloomberg) — The Federal Reserve almost quadrupled the amount of dollars central banks can auction around the world to $247 billion in a coordinated bid to ease the worst crisis facing financial markets since the 1920s.The Fed increased the amount of dollars that the European Central Bank, the Bank of Japan and other [...] continue reading world news

Russian stock markets closed until Friday

Medvedev calls for more measuresMOSCOW (AP) — Russia closed its stock exchanges for a second day Thursday as President Dmitry Medvedev pledged a 500 billion ruble ($20 billion) injection into financial markets to stem a dizzying plummet in share prices — and quash fears of a repeat of the country’s 1998 financial collapse.Russian President Dmitry [...] continue reading world news

Nigeria militants threaten broader delta “oil war”

PORT HARCOURT, Nigeria (Reuters) - Nigerian militants threatened on Wednesday to broaden their “oil war” to offshore oilfields and announced attacks on a crude oil pipeline in the Niger Delta and another Shell-operated facility.The Movement for the Emancipation of the Niger Delta (MEND), responsible for attacks that have cut a fifth of OPEC member Nigeria’s [...] continue reading world news

Nigeria militants threaten broader delta “oil war”

PORT HARCOURT, Nigeria (Reuters) - Nigerian militants threatened on Wednesday to broaden their “oil war” to offshore oilfields and announced attacks on a crude oil pipeline in the Niger Delta and another Shell-operated facility.The Movement for the Emancipation of the Niger Delta (MEND), responsible for attacks that have cut a fifth of OPEC member Nigeria’s [...] continue reading world news

AIG has under 24 hours to raise $80bn and avoid collapse

A man walks through a revolving door at an American International Group (AIG) building in New York’s financial district September 16, 2008. REUTERS/Lucas JacksonThe world’s largest insurance company has less than 24 hours to raise $80bn (£45bn) or face collapse, a leading US politician has warned. The dire diagnosis for American International Group (AIG), made [...] continue reading world news

SEC issues new rules against abusive naked short-selling

WASHINGTON (MarketWatch) — U.S. securities regulators issued new rules Wednesday designed to protect investors against so-called “naked” short-selling, including requiring short sellers to deliver securities by the close of business on the settlement date and making clear that those lying about their ability or intention to deliver on time are breaking the law.“These several actions [...] continue reading world news

Fed to give AIG $85 billion loan and take 80% stake

A man behind the door at an American International Group building in New York’s financial district on Tuesday. (Lucas Jackson/Reuters)In an extraordinary turn, the Federal Reserve agreed Tuesday night to take a nearly 80 percent stake in the troubled giant insurance company, the American International Group, in exchange for an $85 billion loan.The Federal Reserve [...] continue reading world news

Fed to give AIG $85 billion loan and take 80% stake

A man behind the door at an American International Group building in New York’s financial district on Tuesday. (Lucas Jackson/Reuters)In an extraordinary turn, the Federal Reserve agreed Tuesday night to take a nearly 80 percent stake in the troubled giant insurance company, the American International Group, in exchange for an $85 billion loan.The Federal Reserve [...] continue reading world news

WaMu shares hit hard

Already battered, Washington Mutual shares fall as potential capital sources’ attention is diverted.NEW YORK (CNNMoney.com) — Don’t forget about Washington Mutual.Concerned that Wall Street has done just that, the nation’s largest savings-and-loan plummeted 22% in mid-day trading. Investors are concerned that potential sources of capital have disappeared in the upheaval this weekend on Wall Street [...] continue reading world news

Wall Street’s Next Big Problem

WHEN I drove to the Beverly Hills offices of Drexel Burnham Lambert on Feb. 13, 1990, the last thing I expected to hear was that the investment bank where I worked was going under. Yet early that morning, we were told that the company was filing for bankruptcy. I was, to put it mildly, blown [...] continue reading world news

Bolivia’s President Morales declares martial law in rebellious state

Supporters of Bolivia’s President Evo Morales burn dolls representing Leopoldo Fernandez, governor of the opposition state of Pando, in La Paz, Monday, Sept. 15, 2008. Several opposition provinces are seeking greater autonomy from Morales’ government and insist on the cancellation of a Jan. 25, 2008 referendum on a new constitution that would help him centralize [...] continue reading world news

Wilbur Ross: Possibly a Thousand Banks Will Close

In an exclusive interview with CNBC.com, Wilbur Ross, chairman and CEO of WL Ross & Co., says he sees possibly as many as a thousand bank closures in the coming months. And this will create opportunities for investors.(Watch the full CNBC.com exclusive interview with Wilbur Ross )“I do think a lot of the regional ones [...] continue reading world news

Wilbur Ross: Possibly a Thousand Banks Will Close

In an exclusive interview with CNBC.com, Wilbur Ross, chairman and CEO of WL Ross & Co., says he sees possibly as many as a thousand bank closures in the coming months. And this will create opportunities for investors.(Watch the full CNBC.com exclusive interview with Wilbur Ross )“I do think a lot of the regional ones [...] continue reading world news

AIG shares fall 52 percent

NEW YORK (Reuters) - Shares of American International Group fell more than 50 percent in early trading on reports that the insurer had turned to the Federal Reserve for $40 billion in bridge financing to ward off a liquidity crisis and ratings downgrades.AIG shares dropped 52 percent to $5.82 on the New York Stock Exchange [...] continue reading world news

Bank of America Said to Reach $44 Billion Deal to Buy Merrill

Sept. 14 (Bloomberg) — Bank of America Corp. reached a deal to acquire Merrill Lynch & Co. for about $44 billion, the Wall Street Journal reported, after shares of the third-biggest U.S. securities firm fell by more than 35 percent last week and smaller rival Lehman Brothers Holdings Inc. neared bankruptcy.The boards of Merrill and [...] continue reading world news

Bank of America Said to Reach $44 Billion Deal to Buy Merrill

Sept. 14 (Bloomberg) — Bank of America Corp. reached a deal to acquire Merrill Lynch & Co. for about $44 billion, the Wall Street Journal reported, after shares of the third-biggest U.S. securities firm fell by more than 35 percent last week and smaller rival Lehman Brothers Holdings Inc. neared bankruptcy.The boards of Merrill and [...] continue reading world news

Jobless set to top two million as the UK economy heads for meltdown

A JobCentre officeThe true scale of the jobs disaster facing Britain is revealed today as experts issue dire warnings that up to half a million workers will lose their jobs over the next two years, as companies cut costs and scale back investment plans to survive the economic downturn.Official figures are widely expected to reveal [...] continue reading world news

China may cut its dollar holdings - CICC

China, which holds a fifth of its currency reserves in Fannie Mae and Freddie Mac debt, may cut the portion held in US dollars, according to China International Capital Corp (CICC), one of the nation’s biggest investment banks.The US government this week seized control of the two mortgage-finance companies, which account for almost half of [...] continue reading world news

China may cut its dollar holdings - CICC

China, which holds a fifth of its currency reserves in Fannie Mae and Freddie Mac debt, may cut the portion held in US dollars, according to China International Capital Corp (CICC), one of the nation’s biggest investment banks.The US government this week seized control of the two mortgage-finance companies, which account for almost half of [...] continue reading world news

USDA Cuts US Corn, Soy Estimates; Grain Mkts Up (2nd UPDATE)

(Updates with closing grain prices; additional analyst comments)CHICAGO -(Dow Jones)- The U.S. Department of Agriculture Friday cut its projections for 2008 U.S. corn and soybean production, keeping supplies of the commodities tight and helping lift grain prices.The reduction in crop size, which was the result of poor growing weather in August, could be the start [...] continue reading world news

USDA Cuts US Corn, Soy Estimates; Grain Mkts Up (2nd UPDATE)

(Updates with closing grain prices; additional analyst comments)CHICAGO -(Dow Jones)- The U.S. Department of Agriculture Friday cut its projections for 2008 U.S. corn and soybean production, keeping supplies of the commodities tight and helping lift grain prices.The reduction in crop size, which was the result of poor growing weather in August, could be the start [...] continue reading world news

Lehman survival questioned on scramble to sell assets

NEW YORK (Reuters) - Lehman Brothers Holdings Inc’s survival was called into question as its chief executive scrambled to sell assets to cover losses from toxic real estate investments, sending shares down as much as 46 percent.The investment bank’s need to raise desperately needed cash, broadly outlined by CEO Dick Fuld on Wednesday, failed to [...] continue reading world news

Report: Oil Agency Ran Amok, Interior Dept. Inquiry Finds Sex, Drugs, Corruption

Government officials in charge of collecting billions of dollars worth of royalties from oil and gas companies accepted gifts, steered contracts to favored clients and engaged in drug use and illicit sex with employees of the energy firms, federal investigators reported yesterday.Investigators from the Interior Department’s inspector general’s office said more than a dozen employees, [...] continue reading world news

Bailouts Will Push US into Depression

Source: YouTubeThe end result of the global economic slowdown may be the U.S. announcing national bankruptcy as the government cannot afford the bailouts that it promised and the market will not bail out the government, Martin Hennecke, senior manager of private clients at Tyche, told CNBC on Thursday.“We expect a depression in the United States. [...] continue reading world news