People’s Bank of China powers into Britain

China’s central bank has acquired a secret stake in Drax, the owner of the UK’s biggest coal-fired power station.The People’s Bank of China is understood to have been building its stake in Drax for about a year and now owns just over 0.7pc of the company.The stakebuilding provides a further illustration of the extent to [...] continue reading world news

U.S. Must Buy Assets to Prevent Financial Tsunami

The financial tsunami is already on its way. That is why the central banks have intervened on a massive scale to support the dollar, so that the tsunami will hit the economy a little later.Asking a totally broke government to buy assets is a interesting idea. And who will ultimately pay for any government spending? [...] continue reading world news

Who Wants To Be CEO of a Red, White and Blue Kakistocracy*?

*Kakistocracy is government by the very worst, least principled, and most incompetent people. You will be forgiven for thinking that the word, kakistocracy, perhaps derives from the word, “caca”, itself derived from the Latin, “cacare”. In fact, kakistocracy derives from the Greek, kakos, meaning “bad”.)Let me make myself clear from the outset: I am not [...] continue reading world news

Lehman May Shift $32 Billion of Mortgage Assets to `Bad Bank’

Sept. 4 (Bloomberg) — Lehman Brothers Holdings Inc. may shift about $32 billion of commercial mortgages and real estate to a new company that will be spun off in a move similar to the good-bank-bad-bank model used in the 1980s banking crisis, two people briefed on the discussions said.The bad bank, nicknamed Spinco for now, [...] continue reading world news

In The Eye Of The Storm

By John Browne, senior market advisor - Euro Pacific CapitalAs we enter the height of the hurricane season, it may be worthwhile to recall, when considering the economy at large, the particular deception that lurks in the “eye” of the storm. After a raging tempest, the sudden appearance of the calm ‘eye’ can all too [...] continue reading world news

House prices suffer biggest fall since records began

House prices: Dropped by more than £25,000 over the past year. Photo: Cate Gillon/GettyHouse prices fell by 1.8% in August, bringing the average price of a property in the UK below the government’s new stamp duty threshold, figures showed today.The UK’s largest lender, Halifax, said the average price of a property had fallen by 12.7% [...] continue reading world news

GM, Ford, Chrysler Sales Collapse

Chrysler President Jim Press: “Maybe towards the end of ‘09, going into 2010, there’ll start to be some signs of recovery.” Maybe not. ____________________________________________________________________________The Wall Street Journal is reporting Auto Sales Tumble, But Industry Sees Signs of Hope.Sales of cars and light trucks fell 15.5% to 1.25 million last month, down from 1.48 million a [...] continue reading world news