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Global financial system implosion begins

Cyprus eurozone bailout prompts anger as savers hand over possible 10% levy

WTF? they are really taking the piss here:

European finance ministers have agreed an £8.7bn bailout for Cyprus which includes all Cypriot bank customers handing over up to 10% of their savings.

Cyprus becomes the fifth country after Greece, Ireland, Portugal and Spain to turn to the eurozone for financial help amid the region's debt crisis, but also faces a possible run on its banks as depositors try to avoid losing up to 10% of their savings.

The savers, half of whom are thought to be Russian, will raise almost €6bn. It is the first time a bailout has included such a measure.

"I wish I was not the minister to do this," the Cypriot finance minister, Michael Sarris, said after 10 hours of late-night talks in which eurozone finance ministers agreed the package. "Much more money could have been lost in a bankruptcy of the banking system or indeed of the country."...
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This is pretty good... .. .

This Is What Happens When A Journalist Forces A Banker To Actually Answer A Question
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Embedded media from this media site is no longer available

EDIT:

Wankers
 
Dr Jon said:
Thieving, money-juggling-parasite vermin.

Send them to the evisceration station!
:D

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I really loved this rant ! All so, so true ! Would make a great sketch if , say, Rory Bremnar, playing an unrecognised Gideon, was to get into a taxi being driven by this spittle spewing Leftie taxi driver , who starts his rant with "here mate you look like that twat Gideon Osborne......!" End punch line from a now completely spittle drenched Gideon would be something like "errr super, lovely , I think I'll get out and walk from here old chap".
 
yield said:
junglevip the answer is communism not Rand Paul libertarianism.

Russia Today the mouth piece of democracy.
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You may know more about that than me but, can we agree that bankers who launder money for Mexican drug gangs need life sentences?
 
Barking_Mad said:
Drug money saved banks in global crisis, claims UN advisor
Drugs and crime chief says $352bn in criminal proceeds was effectively laundered by financial institutions

Drugs money worth billions of dollars kept the financial system afloat at the height of the global crisis, the United Nations' drugs and crime tsar has told the Observer.

Antonio Maria Costa, head of the UN Office on Drugs and Crime, said he has seen evidence that the proceeds of organised crime were "the only liquid investment capital" available to some banks on the brink of collapse last year. He said that a majority of the $352bn (£216bn) of drugs profits was absorbed into the economic system as a result.

This will raise questions about crime's influence on the economic system at times of crisis. It will also prompt further examination of the banking sector as world leaders, including Barack Obama and Gordon Brown, call for new International Monetary Fund regulations. Speaking from his office in Vienna, Costa said evidence that illegal money was being absorbed into the financial system was first drawn to his attention by intelligence agencies and prosecutors around 18 months ago. "In many instances, the money from drugs was the only liquid investment capital. In the second half of 2008, liquidity was the banking system's main problem and hence liquid capital became an important factor," he said.

Some of the evidence put before his office indicated that gang money was used to save some banks from collapse when lending seized up, he said.

"Inter-bank loans were funded by money that originated from the drugs trade and other illegal activities... There were signs that some banks were rescued that way." Costa declined to identify countries or banks that may have received any drugs money, saying that would be inappropriate because his office is supposed to address the problem, not apportion blame. But he said the money is now a part of the official system and had been effectively laundered.

"That was the moment [last year] when the system was basically paralysed because of the unwillingness of banks to lend money to one another. The progressive liquidisation to the system and the progressive improvement by some banks of their share values [has meant that] the problem [of illegal money] has become much less serious than it was," he said.
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In that they were helping keep the whole thing afloat yes for sure.
 
Barking_Mad said:
Is this what's going to cause things to really kick off?
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Well, it won't kick it off, but it will be what they will do when it does kick it off.

I think what will kick it off is the collapse of the shale gas bubble. Shale gas gets funded by Volumetric Purchase Payments, in which hypothetical future gas production (which doesn't exist) is securitised and used as collateral to fund the initial fracking operation, then gets bundled and flipped before the well craters - it's a Ponzi scheme, and about to burst. The first of the VPP failures is reaching the US courts.

I suspect this will be the initiating event of the next cycle of the financial crisis, mirroring the 2008 housing crisis which exploited exactly the same wheeze.
 
The Pyramid Crisis (video, 40 minutes)

This explains the dependence of energy, environment and the economy's on exponential growth, and what is happening as the economy's dependence is colliding with energy and the environment's inability to keep up.

Despite the tone (which is calibrated to penetrate its US audience's low education and attention span), this is an excellent and very accessible summary of the situation from three well qualified commentators.

References to German and UK military and finance policy.
 
More of the Same
There is more of the same thievery on the part of the establishment, everywhere in the world. There is more of the same poverty, there is more of the same denial … There is more of the same advertising for unlimited resources, more of the same consumer sales, more of the same real estate rebounds, more of the same freeway lane-miles added to more of the same freeways …
More of the same hollow, pointless ‘progress’.
More of the same, the management systems the world has relied upon since the end of World War Two are breaking down but more applications of the same failed management approaches are underway. To support more of the same failures there is more of the same moral hazard, more of the same credit provision, more of the same propaganda and lies. There is more of the same breakages with more of the same exponentially increasing consequences. There is more of the same corruption, more of the same outright pillage and bullying.
...
The underlying cause is centuries’ long destruction of resource capital. The consequence is diminishing resource throughput, diminished capital with a large and increasing scarcity premium attached to it. There is simply no more (of the same) capital to waste affordably. What capital remains is too valuable: the cost of retiring debts is greater than the worth of debts themselves. Whether the managers admit it or not, the markets right now are pricing the true costs of waste beyond the reach of today’s wasters … also tomorrow’s.
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Guardian have just picked up on the "carbon bubble" stuff Falcon mentioned a while back.

The world could be heading for a major economic crisis as stock markets inflate an investment bubble in fossil fuels to the tune of trillions of dollars, according to leading economists.

"The financial crisis has shown what happens when risks accumulate unnoticed," said Lord (Nicholas) Stern, a professor at the London School of Economics. He said the risk was "very big indeed" and that almost all investors and regulators were failing to address it.

The so-called "carbon bubble" is the result of an over-valuation of oil, coal and gas reserves held by fossil fuel companies. According to a report published on Friday, at least two-thirds of these reserves will have to remain underground if the world is to meet existing internationally agreed targets to avoid the threshold for "dangerous" climate change. If the agreements hold, these reserves will be in effect unburnable and so worthless – leading to massive market losses. But the stock markets are betting on countries' inaction on climate change.

The stark report is by Stern and the thinktank Carbon Tracker. Their warning is supported by organisations including HSBC, Citi, Standard and Poor's and the International Energy Agency. The Bank of England has also recognised that a collapse in the value of oil, gas and coal assets as nations tackle global warming is a potential systemic risk to the economy, with London being particularly at risk owing to its huge listings of coal.
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http://www.guardian.co.uk/environment/2013/apr/19/carbon-bubble-financial-crash-crisis
 
thing is though, if they do opt / get forced to leave it in the ground, will the price of the remainder not go through the roof, so financially it's probably pretty difficult to accurately assess the impact on those companies reserves valuations.
 
Bernie Gunther said:
Guardian have just picked up on the "carbon bubble" stuff Falcon mentioned a while back.
<snip>
But the stock markets are betting on countries' inaction on climate change.
</snip
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http://www.guardian.co.uk/environment/2013/apr/19/carbon-bubble-financial-crash-crisis
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The bit i selected from that guardian quote is the most alarming, and tragic, statement i have read in a long time. It's saying the stock market is betting on us actually destroying ourselves and rendering the planet uninhabitable :(:facepalm:
 
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