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Protest at the Bank of England: No Bail Out for the Bosses
video from http://www.youtube.com/user/adycousins
" http://www.socialistworker.co.uk
Hundreds of protestors attempted to storm the Bank of England and Royal Exchange before marching round the City and bring traffic to a halt." video from http://www.youtube.com/user/adycousins "http://www.socialistworker.co.uk ... more -
Free Marketeers Rally on Capitol Hill
ANP: Hundreds rallied at the U.S. Capitol to support free markets.
On October 10th, 2008, a day when the Washington Post asked if we face the "end of American capitalism," hundreds rallied at the U.S. Capitol to support free markets and deregulation. The Bush administration may be considering nationalizing banks, but members of Americans for Prosperity, the group that organized the rally, cheered the slogan, "Free markets work every time, all the time." ANP: Hundreds rallied at the U.S. Capitol to support free markets. ... more -
Financial crisis calls for massive investment
Bill Fletcher: We need public investment in infrastructure and a basic change in the way we live. Part 2
Immediately following the second Presidential debate between Barack Obama and John McCain, Senior Editor Paul Jay spoke with Bill Fletcher, Jr.. In part two of that interview, Bill discusses the sort of response he would hope to see from a new President to address the roots of the crisis.
Bill Fletcher, Jr. is a columnist, activist, author and labor organizer. He is the Executive Editor of The Black Commentator and his newest book, co-written with Fernando Gapasin, is entitled "Solidarity Divided: The Crisis in Organized Labor and a New Path Toward Social Justice". He is the a cofounder of the Center for Labor Renewal, has served as President of TransAfrica Forum and was formerly the Education Director and later Assistant to the President of the AFL-CIO.
See Part 1 at: http://current.com/items/89386881_contempt_from_mccain_... Bill Fletcher: We need public investment in infrastructure and a basic change in the way we live. Part 2 ... more -
Worst week ever on world markets
Timothy Canova says its time to nationalize the big banks.
Timothy Canova is the Associate Dean for Academic Affairs and Betty Hutton Williams Professor of International Economic Law at Chapman University. His research covers the disciplines of law, public finance, and economic history. He has a history of critical writing regarding the deregulation of banking and finance since the 1980s. He has analyzed the meltdown of Continental Illinois, at the time the largest bank failure in American history, and anticipated the collapse of the savings & loan industry. Before the Asian economic crisis began, he was arguing against the liberalization of capital accounts, and then warned of a crisis in the bubble economy. He is a long-time advocate for well regulated financial markets, accountability and the rule of law in central banking. Timothy Canova says its time to nationalize the big banks. ... more -
Will the largest Swiss banks collapse?
Just as is the case with Iceland, Switzerland's economy is dwarfed by the size of it's banks. The balance sheet of the largest bank in the country, UBS, adds up to 4 times the annual GDP. Number two in Switzerland, Credit Suisse, is worth 2.5 times the annual GDP. The combined outstanding loans in these two banks are worth more than the annual GDP.
In this article, the popular German weekly, Der Spiegel, talks about fears in Zurich, of what the world financial crisis can bring to Switzerland. Just as is the case with Iceland, Switzerland's economy is dwarfed by the size of it's banks. The balance sheet of the large... more -
Nobel Laureate Yunus: 'Capitalism Has Degenerated into a Casino'
Interview with Nobel Laureate in Economics Muhammad Yunus. A few excerpts:
"Today's capitalism has degenerated into a casino. The financial markets are propelled by greed. Speculation has reached catastrophic proportions."
"The fundamental difference is that our business is very connected to the real economy. When we provide a loan of $200, that money will go to buy a cow somewhere. If we lend $100, someone will maybe buy some chickens. In other words, the money goes to something with concrete value. Finance and the real economy have to be connected. In the US, the financial system has completely split off from the real economy. Castles were built in the sky, and suddenly people realized that these castles don't exist at all. That was the point at which the financial system collapsed." Interview with Nobel Laureate in Economics Muhammad Yunus. A few excerpts: ... more -
The End of Arrogance: America Loses Its Dominant Economic Role
(Article from popular German weekly "Der Spiegel").
The banking crisis is upending American dominance of the financial markets and world politics. The industrialized countries are sliding into recession, the era of turbo-capitalism is coming to an end and US military might is ebbing. Still, this is no time to gloat.
There are days when all it takes is a single speech to illustrate the decline of a world power. A face can speak volumes, as can the speaker's tone of voice, the speech itself or the audience's reaction. Kings and queens have clung to the past before and humiliated themselves in public, but this time it was merely a United States president.
Or what is left of him.
George W. Bush has grown old, erratic and rosy in the eight years of his presidency. Little remains of his combativeness or his enthusiasm for physical fitness. On this sunny Tuesday morning in New York, even his hair seemed messy and unkempt, his blue suit a little baggy around the shoulders, as Bush stepped onto the stage, for the eighth time, at the United Nations General Assembly.
He talked about terrorism and terrorist regimes, and about governments that allegedly support terror. He failed to notice that the delegates sitting in front of and below him were shaking their heads, smiling and whispering, or if he did notice, he was no longer capable of reacting. The US president gave a speech similar to the ones he gave in 2004 and 2007, mentioning the word "terror" 32 times in 22 minutes. At the 63rd General Assembly of the United Nations, George W. Bush was the only one still talking about terror and not about the topic that currently has the rest of the world's attention.
"Absurd, absurd, absurd," said one German diplomat. A French woman called him "yesterday's man" over coffee on the East River. There is another way to put it, too: Bush was a laughing stock in the gray corridors of the UN.
(continues - see the link) (Article from popular German weekly "Der Spiegel"). ... more -
Stock exchange in Madrid, Spain, suffers largest drop in history
The Ibex-35 fell 9.14% yesterday, the biggest daily decline since its creation in 1992, and beating the previous record set on January 21st, 2008, when the index fell 7.54%.
It was the final chapter in a turbulent week that has seen a 21% decline to 8,997.7 points - the lowest level since January 2005 (8,907), and only the second time the index has dipped below the 9,000 point barrier.
Since the start of the year, the index has fallen 41%.
While up until a few days ago it was the banks, mortgage companies and other financial institutions whose shares were losing value most rapidly, panic has now seemed to have spread to other sectors with recent heavy punishment especially for leading energy suppliers and telecommunications companies. The Ibex-35 fell 9.14% yesterday, the biggest daily decline since its creation in 1992, and beating the previous record set on January... more -
Bush Confident in Financial Crisis
“He said that if it was going to happen at all, he was glad it was happening under his presidency, because he had a good group of people in D.C. working for him,” Dru Van Steenberg, one of several small-business owners who met with Mr. Bush in San Antonio earlier this week. The president expressed the same sentiment, others said, during a similar private session in Chantilly, Va., the next day.
“He said that whoever was going to take over in January was going to have a huge crisis on their hands the day they come into office,” Ms. Van Steenberg added. “He thought by this happening now, that perhaps everyone could see signs of improvement before the next president comes into office.” “He said that if it was going to happen at all, he was glad it was happening under his presidency, because he had a good group of peop... more -
As Crisis Spreads, Europe points finger at America
Apparently us Europeans are blaming the financial crisis solely on the US. Nothing to do with rediculous credit debts and bank employee's gambling like drunks in Vegas then. Apparently us Europeans are blaming the financial crisis solely on the US. Nothing to do with rediculous credit debts and bank employ... more
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A UK Bankruptcy Every Five Minutes
After a decade of binging on borrowed money and dining out on debt, consumers are now paying a heavy price.
According to the debt charity Credit Action, one person is declared bankrupt or insolvent every five minutes in the UK.
Every day, 104 properties are repossessed and the average household debt is £9,500 (excluding mortgages).
According to Roger Bootle, the managing director of Capital Economics, the way banks lend money has changed forever.
He said: "The financial landscape will never be the same again. We've passed through a major event which is on a par of much of what occurred in the 1920s and 30s leading up to the Great Depression.
"We've been through a period when the financial markets went bonkers and remarkably central banks and governments allowed them to and many of us were caught up in this."
The number of people seeking debt help from Citizens Advice has increased by more than a third in the last 12 months.
Most people do not realize how much debt they are in. Even those who know they are in trouble, are often reluctant to seek help. Advisers stress that ignoring debt is the worst thing people can do.
Alex MacDermott, policy officer at Citizens Advice, said: "Come and get advice as early as possible. There are lots of ways we can help. We can make sure you're getting all your benefits and tax credits.
"There is something like £9.9 billion of means-tested benefits which went unclaimed last year so there's certainly a lot of money that people are missing out on.
"We would then look at prioritizing your debts, so we'd look at making your mortgage payments, your council tax, your fuel payments a top priority to make sure you don't get cut off or evicted from your property. Then we'd look at rescheduling any other debts out of what's left over." After a decade of binging on borrowed money and dining out on debt, consumers are now paying a heavy price. ... more -
After the global financial crisis comes the global humanitarian crisis?
It seems like 2008 is becoming the year of global crisis. First we were faced with the worldwide food crisis, swiftly followed by, what now seems to be, a collapse of major financial institutions.
But it might not stop here. As FAO, the UN Food and Agriculture Organisation, calculated the cost to deal with the current food crisis at US$30 billion per year, donors stepped up their financial support.
But that was before the current financial crisis. At this moment, the governments worldwide concentrate their financial resources in keeping their banks and financial institutions afloat.
The question now is: how much money will be left for international aid? It seems like 2008 is becoming the year of global crisis. First we were faced with the worldwide food crisis, swiftly followed by, wha... more -
AIG gets an ADDITIONAL $37.8 billion
Troubled insurance giant has been granted an additional $37.8 billion on top of it's original $85 billion. All of this despite evidence of AIG's execs mismanaging previous bailout money. Troubled insurance giant has been granted an additional $37.8 billion on top of it's original $85 billion. All of this despite e... more
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No Confirmation Hearings for Bailout Czar
As if oversight and screening were not needed during this tumultuous financial bailout, Banking Committee Chairman Chris Dodd (D-Conn.) has no plans of scheduling hearings in the confirmation of Neel Kashkari - a former Goldman Sachs employee with only 6-years of experience under his belt. As if oversight and screening were not needed during this tumultuous financial bailout, Banking Committee Chairman Chris Dodd (D-Conn.... more
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GM and Chrysler: possible merger?
General Motors is in preliminary talks about a possible merger with Chrysler, a deal that could drastically remake the landscape of the auto industry by reducing the Big Three of Detroit automakers to the Big Two.
The talks between G.M. and Cerberus Capital Management, the private equity firm that owns Chrysler, began more than a month ago, and the negotiations are not certain to produce a deal. Two people close to the process said the chances of a merger were “50-50” as of Friday and would most likely still take weeks to work out.
A merger would be a historic event, with two of the most iconic names in American industry coming together to survive in an increasingly difficult environment. Both have roots dating back decades in Detroit and, with Ford, long dominated the auto industry — until Japanese and other foreign car makers began making inroads into the American market.
The auto industry is being pummeled from all sides — by high gas prices that have soured consumers on profitable S.U.V.’s, by a softening economy that has scared shoppers away from showrooms, and by tight credit that is making it difficult for willing buyers to obtain loans. Both G.M. and Chrysler have been struggling with product lineups that are out of sync with consumer demand for smaller, more fuel-efficient cars. General Motors is in preliminary talks about a possible merger with Chrysler, a deal that could drastically remake the landscape of th... more -
World Bank under cyber siege in 'unprecedented crisis'
The World Bank Group's computer network — one of the largest repositories of sensitive data about the economies of every nation — has been raided repeatedly by outsiders for more than a year, FOX News has learned.
It is still not known how much information was stolen. But sources inside the bank confirm that servers in the institution's highly-restricted treasury unit were deeply penetrated with spy software last April. Invaders also had full access to the rest of the bank's network for nearly a month in June and July.
In total, at least six major intrusions — two of them using the same group of IP addresses originating from China — have been detected at the World Bank since the summer of 2007, with the most recent breach occurring just last month.
In a frantic midnight e-mail to colleagues, the bank's senior technology manager referred to the situation as an "unprecedented crisis." In fact, it may be the worst security breach ever at a global financial institution. And it has left bank officials scrambling to try to understand the nature of the year-long cyber-assault, while also trying to keep the news from leaking to the public.
[read more] The World Bank Group's computer network — one of the largest repositories of sensitive data about the economies of every nation —... more -
Why did Iceland's banks go bankrupt?
For most of the last century, Iceland was little more than a rest stop for North Atlantic fishing fleets trawling the waters between Greenland and the Faroe Islands.
Reykjavik, where much of the island’s population of 320,000 is based, still feels like a provincial port. Taxi drivers wave to the president and there is a sense that most people are linked by blood, business or politics. But for all its sleepy air, the Icelandic capital has been transformed over the past decade. A headlong expansion into foreign markets brought the country influence out of proportion to its size and made its population one of the richest, per capita, in the world.
Now, after a week in which Iceland’s top three banks collapsed and were nationalised – putting more than €20bn ($27bn, £16bn) of depositors’ money in jeopardy across Europe – fame is turning into notoriety. As Geir Haarde, prime minister, warned this week: “The danger is real that the Icelandic economy would be sucked, along with banks, under the waves and the nation would become bankrupt.”
It is a sorry finale to what Mr Haarde’s predecessors hailed as an economic transformation that turned a poor, isolated community into a powerhouse of banks and entrepreneurs, with global investments ranging from pharmaceuticals to fund management.
The island erupted on to the world’s financial stage in the early years of this decade. Icelanders bought up swaths of eastern Europe’s telecommunications market, some of the best-known names on the UK’s high street, including House of Fraser and Hamleys, and much of the Nordic banking system.
Inevitably, observers questioned where the money had come from. Tales of strange links to Russia abounded. “It is often implied that there is something dubious or shady about the origin of Icelandic financial strength,” Ólafur Ragnar Grímsson, president, said in 2006, commenting on “far-fetched explanations” of Iceland’s sudden wealth.
Much of the mystery centred around the charismatic figure of Thor Björgólfsson, even now barely 40, Iceland’s richest man and founder of Actavis, the world’s fourth largest maker of generic drugs. He began his career by setting up a brewery in St Petersburg, which he sold to Heineken in 2002. The sale earned him $100m.
About the same time, Jón Ásgeir Jóhannesson, the youthful chief executive of Baugur, Iceland’s biggest retailer, suddenly materialised as the unknown acquirer of a big stake in Arcadia, the UK retail chain.
In reality, said Mr Grímsson, Iceland’s success was easily explained. The country had benefited from a fortuitous combination: globalisation and widespread removal of trade and financial controls, together with innovations in information technology that made its geographical isolation irrelevant.
At the foundation of Iceland’s success was aluminium smelting and a well-funded pension system based on the fisheries industry that had the money and a new appetite to invest in equities. This coincided with the deregulation and privatisation of the banking system, which allowed the island’s banks – Kaupthing, Landsbanki and Glitnir (then called Islandsbanki) – to diversify away from their traditional bases in farming and fisheries.
A class of 30-something business school alumni such as Hreidar Mar Sigurdsson, now chief executive of Kaupthing, the bank that until its nationalisation this week was Iceland’s biggest listed company, were quick to take advantage of these changes. As one banker says: “Kaupthing thought of themselves as the Goldman Sachs of the Arctic.”
Bankers and businessmen borrowed heavily abroad, invested in each others’ companies and expanded overseas. When asked where Bakkavor, the Icelandic food company, had got the money to buy Geest – a deal that turned Bakkavor into the UK’s largest ready-made food company – Mr Grímsson said: “The answer was very simple: ‘It comes from Barclays Bank’.” Much of Mr Björgólfsson’s backing came from Deutsche Bank.
(continues at link) For most of the last century, Iceland was little more than a rest stop for North Atlantic fishing fleets trawling the waters between G... more -
10 ways rappers can relate to their broke fans
When your fans can't afford gas it's bad form to rap about being rich. Here are 10 ways that flossy rappers can be more fiscally responsible. When your fans can't afford gas it's bad form to rap about being rich. Here are 10 ways that flossy rappers can be more fisc... more
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The roots and remedies of the financial crisis
Leo Panitch: It's time to make banking a public utility. Part 4
In the last segment of Senior Editor Paul Jay's discussion with Leo Panitch, Leo describes the various decisions on the part of the US government which led to the crisis. In short, Leo claims that the effort to house the poor without mobilizing large public expenditure is what created the conditions for the crisis. As a result, the only way to resolve the situation is to return this role to the state itself, as funded by progressive taxation and a sharp decline in military spending.
Leo Panitch is the Canada Research Chair in Comparative Political Economy and a Distinguished Research Professor of Political Science at York University in Toronto. Panitch is also the author of "Global Capitalism and American Empire" and his most recent release "American Empire and the Political Economy of International Finance". Leo Panitch: It's time to make banking a public utility. Part 4 ... more -
Stock markets in freefall. Today's world wide overview
UK - The FTSE 100 plummeting by more than 10% in early trading.
United States - the Dow Jones plummeted nearly 700 points in the first ten minutes of trading to 7882, a fall of 8%.
Iraq - Baghdad stockmarket is booming, with the general index up by nearly 40% last month. UK - The FTSE 100 plummeting by more than 10% in early trading. ... more
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