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