Due to the opacity of the market, which is one of the most complex, least regulated and least understood in the global financial system, it is still not clear how many contracts have to be settled or which institutions will take the ultimate hits once the billions of dollars worth of contracts have been unravelled.
(NaturalNews) In 1942, German intelligence officers rounded up skilled Jewish prisoners and launched Operation Bernhardt, a clever scheme designed to counterfeit hundreds of millions of dollars worth of British Pounds and destroy the British economy by flooding it with counterfeit money. Located in the Sachsenhausen concentration camp, Operation Bernhardt was, even by modern standards, a…
A group of House Republicans is cobbling together a proposal to stabilize financial markets that can serve as an alternative to the plan proposed by Treasury Secretary Henry Paulson, legislative sources have told CNBC. The failure of Mondays vote on the $700 billion bailout package—which these Republicans doubt is likely to cause an economic “doomsday”…
The government will provide a further $50 billion to increase liquidity in the banking system and fight the “contagion” that has spread from the United States, Prime Minister Vladimir Putin said Monday. The money will be made available to banks and companies to help them pay foreign loans taken out before Sept. 25 and will…
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 by $330 billion to $620 billion to make more dollars available worldwide….
Dear 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 that…
On Friday morning, Senator Christopher Dodd, the head of the Senate Banking Committee, was interviewed on ABC’s “Good Morning America.†Dodd revealed that just hours earlier at an emergency meeting convened by Secretary of the Treasury Henry Paulson and Federal Reserve chairman Ben Bernanke, lawmakers were told that “We’re literally maybe days away from a…
Everyone in the patriot movement saw the “crisis†coming. The World Bank reaching out to confiscate the wealth of a nation. The methods are well known. Create a crisis. Promote hysteria. Act ABRUPTLY to consolidate power and seize societys wealth. In 1995, it was the Mexican “bailout†where annual inflation of 125 percent forced Mexicans…
Sept. 15 (Bloomberg) — In the biggest reshaping of the financial industry since the Great Depression, two of Wall Streets most storied firms, Merrill Lynch & Co. and Lehman Brothers Holdings Inc., headed toward extinction. New York-based Lehman, founded 158 years ago, said early today that it filed for bankruptcy protection after failing to find…
“… a bailout of GSE (Fannie and Freddie) bondholders would be perhaps the greatest taxpayer rip-off in American history. It is bad economics and you can be sure it is terrible politics.â€Matt Kibbe, President of Freedom Works “The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring…
NEW YORK (Reuters) – Goldman Sachs Group Inc (GS.N) said third-quarter earnings plunged 70 percent as one of the markets worst slumps ever sapped revenue in almost every business while fueling investment and credit losses. Ed Note: We think this is particularly significant for our money man, Andrew Gause, (Wednesdays live 7-8 PM One Radio…
* Investors flee for safety after Lehman files for Chapter 11 * High-grade debt, gold, yen in demand on bank industry storm * Focus turns to Fed policy decision on Tuesday (Updates prices, details) Ed Note: Remember to listen live Wednesdays 7 PM CDT for the rest of the story of why this is happening…
— 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, would have…
The U.S. financial crisis has cut so deep – and the government has taken on so much debt in misguided attempts to bail out such companies as Fannie Mae (FNM) and Freddie Mac (FRE) – that even larger financial shocks are still to come, global investing guru Jim Rogers said in an exclusive interview with…
Penalty fees make up nearly half of industry revenues. Blue Ridge Summit, PA. – Would you sign a contract that says, “Any term can be changed at any time for any reason, including no reason”? Anyone who uses a credit card already has. Such are the absurd terms of the consumer credit-card industry, which is…
Aug. 12 (Bloomberg) — Bankslosses from the U.S. subprime crisis and the ensuing credit crunch crossed the $500 billion mark as writedowns spread to more asset types. The writedowns and credit losses at more than 100 of the worlds biggest banks and securities firms rose after UBS AG reported second-quarter earnings today, which included $6…
NEW YORK (Reuters) – Banks borrowed a record amount of funds from the Federal Reserve in the latest week as the year old credit crisis took a persistent toll, while the commercial paper market continued to contract, signaling tough conditions for short term borrowers.
NEW YORK (AP) — Home prices tumbled by the steepest rate ever in May, according to a closely watched housing index released Tuesday, as the housing slump deepened nationwide. The Standard & Poors/Case-Shiller 20-city index dropped by 15.8 percent in May compared with a year ago, a record decline since its inception in 2000. The…
The National Australia Banks decision to write off 90 per cent of its US conduit loans will have dramatic repercussions around the world. Wall Street will be deeply shocked when they understand the repercussions of what NAB has done. It is clear global banks have nowhere near provided for their exposures to US housing loans…
Bank of China Ltd may own about $20 billion of debt issued by Fannie Mae and Freddie Mac, representing two-thirds of total holdings among the six largest Chinese banks, according to CLSA Ltd.