Global financial system implosion begins
- Thread starter Falcon
- Start date
As I posted, I guess that depends upon whether you are "still making on it. A lot".
Many, many, tens of millions of peeps have been royally fucked-over by those "still making on it" - a majority unlikely to recover in a generation.
Woof
Gerald Celente reckons the bailout bubble is about to burst, leading to the the collapse of the financial system.
link
No. No. No.
It'll be fine, remember.........
Don'tcha know?
All's well.
Woof
gosub
~#
You missed the freedom of speech bit of the credit agencies defense
Oh well, no takers on this, pity a few thoughts revolved this afternoon. Freedom of speech is the defense the credit rating agencies are using in the US - what we are offering is opinion and in no way can opinion legally implicate us to commercial decisions made from hearing it...and so the credit rating agencies avoid culpability in the US. would like to know what UK defense is, to stick to same avoids large bill, but my understanding is that UK defamation rules are different, slander (spoken) you can't compalin if someone says what they like provided they can prove it, liable (written) all you have to prove is does you disservice.....if all credit rating is just an opinion then surely a bad credit rating is liable under UK law. Bearing in mind the same logic as stopped people writing negative comments on references.
Gmart
Well-Known Member
I agree that it seems extraordinary that the credit ratings agencies who rated complex financial assets as triple A, when they were anything but, should turn around and state that they should not be expected to reform. They are generally paid by the banks to rate the assets and it is therefore suggested that they tend to do what their paymasters tell them to do.
It would seem obvious that the credit agencies need to be above reproach and I would suggest that their independence needs to be assured at the very least.
Gmart
Well-Known Member
I agree - we also need to find a way to let the banks fail while maintaining the supply of money to the people... If the banks bankrupt themselves then fine, but atm they seem able to do so and then still get paid thru a bailout.
It is thus not too surprising that other industries are complaining that they are not getting support when faced with the sharp end of the market/competition - until this crisis it was government policy to let failing companies fold thus enabling more flexible and smaller companies to rise and take their place. Schumpeter called it Creative Destruction.
Let all banks fail as they might.
Nationalise the Co-Op bank (or something similar, pay the members a few hundred quid each).
Pump any needed public money into this bank and give free money to all comers in small, medium business or individuals.
It would be far cheaper and far more effective than pissing money away into the abyss of CDS's.
Of course, after the first, knee jerk, GBP 100,000,000,000 had been chucked into these sectors, a more measured approach could be taken. Unlike what we have now, where many more tens, or even hundreds, of billions of dollars will be thrown into the black hole of the finance sector ....... "banks".
Madness!
It's the nature of the beast. Every western politician is in thrall of (and in the pocket of,) the wealthy. Ergo, the wealthy get the bail out.
I'd havge started with chucking GBP 100b at the wee gals and guys and let the banks fuck off.
But then, I'm not in thrall of, nor in debt to, The Masters of The Universe.
The UK is likely to take on getting close to an additional GBP trillion of debt over the next few years (unless no-one will buy it, or public spending cuts are introduced that make Maggie look like a socialist Goddess).
With GBP 100b, every UK adult could probably receive, @ GBP 3,000 tax free cash in the first tranche, including all those losing their jobs as a result of the bank meltdown.
A trillion GBP would give each of them @ GBP 30,000. I'm sure that would stimulate the economy.
Obviously this is a first draft, but I guess it all depends whether you believe in a trickle down or a bottom up approach.
Details can be worked out.
Woof
Wolveryeti
Detty Pig
Gerald Celente reckons the bailout bubble is about to burst, leading to the the collapse of the financial system.
link
He sounds like a fucking tool
SpookyFrank
A cheap source of teeth for aquarium gravel
How's that doom and gloom? The more social unrest the better. The status quo isn't exactly doing us any favours is it?
Latest blog post from Kunstlerville, covering attempts to resurrect the car industry, fuel and social stability:
http://jameshowardkunstler.typepad.com/clusterfuck_nation/2009/05/wishes-hopes-fantasies.html
http://jameshowardkunstler.typepad.com/clusterfuck_nation/2009/05/wishes-hopes-fantasies.html
I don't. Sometimes I get an error message, saying that the page is unavailable, but no virus warnings and my antivirus is bang up to date. Maybe try navigating from http://geraldcelentechannel.blogspot.com?
Barking_Mad
Non sibi sed omnibus
elbows
Well-Known Member
Pound strong against dollar again, amid signs of recovery:
http://news.bbc.co.uk/1/hi/business/8076713.stm
Still quite possible that things will collapse further but there are certainly signs that recovery is coming, with the longer term damage perhaps restricted to certain sectors (eg car manufacturing).
Oil price is also rising again, as it always does at this time of year, but the media dont seem to refer to the routine seasonal changes like they used to, its all about the global economy recovering apparently.
If things do recover by years end then I will give a little more credence to the theory that all of this could well have ben oil supply related, supply didnt keep up with demand, brakes were slammed on, buffer between supply and demand grows rapidly, behavioural changes occur, release breaks.
http://news.bbc.co.uk/1/hi/business/8076713.stm
Still quite possible that things will collapse further but there are certainly signs that recovery is coming, with the longer term damage perhaps restricted to certain sectors (eg car manufacturing).
Oil price is also rising again, as it always does at this time of year, but the media dont seem to refer to the routine seasonal changes like they used to, its all about the global economy recovering apparently.
If things do recover by years end then I will give a little more credence to the theory that all of this could well have ben oil supply related, supply didnt keep up with demand, brakes were slammed on, buffer between supply and demand grows rapidly, behavioural changes occur, release breaks.
butchersapron
Bring back hanging
Or alternatively Dollar weak against a basket of currencies?
Interesting link, thanks. I don't see many green shoots either.
GM faces bankruptcy.
kyser_soze
Hawking's Angry Eyebrow
Depends on what the USGs holding of 60% of the company ends up being worth really...
In recessions you don't tend to see economic decline in a straight line, so you will tend to see green shoots - and small spurts of growth in certain sectors. Once these small spurts peter out though, you get another period of decline, followed by further small spurts of growth, with each contraction taking things lower than the previous one. The overall trajectory, over time, looks to be down.
Heh!
Socialism in the US.
The nationalisation of the car industry.
What fun. British Leyland all over again - American Stylee.
Oh dear peeps.
Game over.
Batten down the hatches.
When I say "peeps", of course, I mean ordinary peeps - the millions that are going to lose their livelyhoods and homes (over 30 million in China already).
Cut back, fast.There will be many "green shoots" and "dead cat bounces" in the coming decade.
And the fat cats will take the cream (and even the milk) from these bounces and then viciously "short" during the downturns, to cream themselves again as we slide into global poverty.
Beware.
This is "The Big One".
Woof
david dissadent
New Member
Here are the greenshoots people see.
Bloomberg story
The US governement has made guargantuan amounts of money available for financial institutions and other sources to spend. Some of that money is now filtering into the economy slowing the rate of decline and in some places creating small upticks as growth, or so it seems to me.
Well the vast gap in pensions is not getting filled, people who were spenders 2 years ago now need to accumulate wealth for retirement. All that government and private debt will need to be payed down and if the US does not show significant growth soon people will begin to doubt its ability to grow and start charging more too lend to the US.
On the other hand official Chinese statistics have it growing at about 6% pa. Much of their stimulus is supposed to have gone to the less well off. The same old problem exists with China though and that is the veracity of the official version.
david dissadent
New Member
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