Perspectives on the global economic meltdown- (Nov 28 2010)

pankajs · Post by **pankajs** » 30 Mar 2013 21:27

Nouriel Roubini - The International Financial Crisis and the Euro Zone (~1 hr 32 mins start @ 5 min)

Some very interesting thought. Will post a summary of his main talk later.

RoyG · Post by **RoyG** » 30 Mar 2013 22:28

Yawn, more grim developments for the US dollar.

PM set to sign China currency deal in boost to exporters

BY:ROWAN CALLICK, ASIA-PACIFIC EDITOR From: The Australian March 30, 2013 12:00AM

A CURRENCY deal enabling the Australian dollar to be converted directly into Chinese yuan, slashing costs for thousands of businesses, is set to be the centrepiece of Julia Gillard's mission to China next weekend.

Australia would become the third country, after the US and Japan, to secure such an arrangement from China, which is Australia's top trading partner, with exports and imports totalling $120 billion last financial year.

http://www.theaustralian.com.au/nationa ... 6609244139

shyam · Post by **shyam** » 31 Mar 2013 03:10

Cyberattacks Seem Meant to Destroy, Not Just Disrupt

In the current paperless world, what can you do if your bank tells you tomorrow that your data in the bank has been erased by the hackers?

Neshant · Post by **Neshant** » 31 Mar 2013 03:34

Roubini has shot his gun in every direction when it comes to predictions.

Just a year ago he was talking complete global recovery and now he's talking gloom & doom.

He got himself into the business of hedge funds managing a billion dollars after all the media publicity he's was getting and then started bashing gold.

I don't trust all these celebrity economists pumped up by the media. Their predictions are worthless.

Suraj · Post by **Suraj** » 31 Mar 2013 06:09

Remarkably, the US is going the Indian way, with the lack of job growth in the formal economic sector leading to the growth of a vast informal economy. Predictably the MSM parrots it as bojitiv newj:
Shadow Economy Shows Joblessness Less Than Meets U.S. Eye

America's shadow economy includes activities that are actually illicit -- prostitution and drug dealing -- and more benign jobs like working construction for a day for cash, or even the $2 a kid that Kalmes gets for walking neighborhood children to the bus. Added together, economists estimate $2 trillion could be involved.
Such informal arrangements, while providing a safety net of last resort for workers like Kalmes, also may provide answers to puzzling discrepancies in economic data. One example: Explaining why retail sales have outpaced gains in reported income for almost four years, said Bernard Baumohl, chief global economist at the Economic Outlook Group LLC in Princeton, New Jersey.

Retail sales have grown at an annual rate of 3.5 percent or more since September 2010, even as taxes have increased and jobless benefit eligibility has shrunk to 73 weeks or less from 99 weeks in some states. Unemployment (USURTOT) is 7.7 percent, up from 4.4 percent in 2007, and income rose just 2.2 percent in the 12 months through January.
"There could very well be a much-larger than expected underground economy at work here that is making a contribution," Baumohl said.

Singha · Post by **Singha** » 31 Mar 2013 06:24

Good on you jem. I knew your sensors in high gain mode would do the job.

JE Menon · Post by **JE Menon** » 31 Mar 2013 14:15

"sensors in high gain mode"
Macha, no one can put together this shit like you!!!

Austin · Post by **Austin** » 31 Mar 2013 21:02

Japan debt 'not sustainable' – Bank of Japan

Haruhiko Kuroda, the governor of Japan’s central bank, admitted that the government’s debt is “not sustainable”. Contradicting the optimism of Prime Minister Shinzo Abe, Kuroda told the parliament that a loss of confidence in state finances will have negative consequences for the country’s economy.

So far, the economic strategy of Shinzo Abe has proved to be unsuccessful. FT reports that Morgan Stanley MUFG Securities described the stimulus program launched by the Japanese government as “print and spend”. The increase of the government’s debt is a direct consequence of Abe’s program and the debt to GDP ratio has become abnormally high. Haruhiko Kuroda warned the members of the parliament that the stability of the government bond market should not be taken for granted. A rise in yields of the Japanese government bonds could be devastating to the country’s economy, making the government unable to finance its expenses. Yasunari Ueno, chief market economist at Mizuho Securities in Tokyo, told FT that “a ‘bad’ rise in yields, driven by fears of a loss of fiscal discipline rather than expectations of growth, could ultimately strangle the economy”.

Japanese government has become a target for internal and external criticism for its stimulus program which relies on perpetually low rates and continuous support of the foreign and domestic bondholders. The governor of Japan’s central bank pointed out that such policy is dangerous and can hurt the economy. At the same time, Kuroda is not trying to stop the monetary easing programs launched by his predecessors. He promised the Parliament that the maturity of bond purchases will be extended, proving more room for further “print and spend” stimulus. Reuters reports that the governor of Japan’s central bank believes that the time for stopping the stimulus policies hasn’t come. “As a central bank, we have to mindful of the risks associated with different policies, but it is too early to talk about exit strategy now”, he told the Japanese parliament.

The behavior of the Japanese officials is self-contradictory. Haruhiko Kuroda warns that the stimulus policy is very dangerous but at the same time he is not going to look for an exit strategy. Such contradictions make the policy of the Japanese monetary authority completely unpredictable and that could become a major issue affecting the bondholders’ trust in the Japanese economy.

Neshant · Post by **Neshant** » 01 Apr 2013 05:30

Monkeys on the economics of sharing the wealth which was jointly earned.

Neshant · Post by **Neshant** » 01 Apr 2013 07:20

I see Bernanke's exit strategy as faking his own death, cutting his beard and heading to the airport with suitcases full of cash & gold, with a fake passport.

He'll head to a country with no extradition treaty with the USA.

-----------

How the Fed Can Create a Market-Friendly Exit Strategy: Prof. Jeremy Siegel’s Proposal

In a recent Financial Times Op-Ed, Siegel proposes that the Fed raise bank reserve requirements to around 15%. That would absorb almost all the banks’ excess reserves of about $1.7 trillion so that when the economy picks up the banks won’t flood the market with money. He calls it a “win-win” strategy that would “mop up all the excess liquidity."

Siegel tells The Daily Ticker: “It could be very inflationary if our economy revs up to have all those excess reserves turned into money, into deposits, into loans. One way to prevent them [the banks]f rom doing that is to say you can’t use those excess reserves to make extra loans.”

The Fed in turn wouldn’t be under as much pressure to reduce its $3 trillion balance sheet, selling Treasuries and mortgage-backed securities into a market with already rising rates.

http://finance.yahoo.com/blogs/daily-ti ... 45925.html

TSJones · Post by **TSJones** » 01 Apr 2013 07:52

Neshant wrote:I see Bernanke's exit strategy as faking his own death, cutting his beard and heading to the airport with suitcases full of cash & gold, with a fake passport.

He'll head to a country with no extradition treaty with the USA.

-----------

Well. yes, especially since he is Republican. Grin

Neshant · Post by **Neshant** » 01 Apr 2013 08:28

Customers of an Italian bank have seen deposits fall by “a few billion euros” after a scandal in February, the bank announced Saturday.

According to Reuters, Monte dei Paschi bank reported a yearly loss of 3.2 billion euros ($4.1 billion) – a higher-than-expected net loss for 2012 – after loss-making derivatives trades at the lender amounting to 730 million euros. Bad loans also contributed to the loss.

The bank's chief financial officer said after the earnings were released on Thursday that it was "quick in recovering ground in March" on the lost deposits in February.

The figures highlight the scale of the problems at Italy's third-biggest lender, which received a 4 billion euro ($5.1 billion) state bailout last month, according to Reuters.

The world's oldest bank (est. 1472).

Hard to see how they could be "quick in recovering ground in March" on lost deposits given that the Cyprus issue erupted in March. Sounds like even more folks must have fled the bank in panic with their deposits.

http://www.foxnews.com/world/2013/03/31 ... -finances/

Neshant · Post by **Neshant** » 01 Apr 2013 09:01

You can already see western countries putting capital controls in place to prevent capital flight when they jack up taxes. Get your money out of the banks folks and put it under the mattress. Especially if you are in Europe.

Cash withdrawals and other transactions are subject to tough restrictions, introduced by the country's Finance Ministry in an effort to avoid a run on the banks.

As a result, strict capital controls include a withdrawal limit of 300 euros (£253) a day and a ban on cashing cheques.

Travellers leaving the country can only take up to 1,000 euros (£845), or the equivalent in foreign currency, with them in cash - significantly less than expected.

Neshant · Post by **Neshant** » 01 Apr 2013 09:09

You know its corrupt when the Cyprus bank branches in England & Russia remained opened for business (withdrawls) while all the branches in other countries were closed. Looks like the rich in England & Russia get their money back... at the expense of the folks from other countries who deposited money in Cypriot banks.

Wonder how many Indians got caught in this net and if the Indian govt intends to help them recover their funds.

In other news... there's never an equal sharing of the profits, but there's always calls for sharing of the burderns. Get your money outta banks folks - especially if you're in Europe or some "financial center" which is another name for a scam center.

NICOSIA, Cyprus (AP) — Cyprus's president called on the country to "share the burden" of solving its financial crisis Friday as banks opened for normal business for the second day, but with strict restrictions still in place on how much money their clients can access.

"Everyone will have to make sacrifices as our financial situation, in the violent way in which it has developed, will oblige all of us to share the burden" to reform the economy, he added.

Neshant · Post by **Neshant** » 01 Apr 2013 09:23

“Your money isn’t really yours if it’s needed by the State.”

Jim Grant was back on CNBC comparing the ticking shot-clock in a March Madness game to the artificially low interest rates via manipulation by the Federal Reserve, allowing the Fed to stall the game without any real recovery.

Grant also discusses his belief that the problems in Cyprus cannot be contained, and stresses the point that Your money in the Western banking system is not really yours if it is needed by the state!
Grant goes on to state that This is the greatest and most perilous experiment in the history of paper money! and This will end in immense destruction of wealth!

Neshant · Post by **Neshant** » 01 Apr 2013 09:24

Ah, the vice-president of the Mises Institute says it would expose the problems with fractional reserve banking and thus diminish its prevalence..a good thing! He claims that what happened in Cyprus works toward this end as well:

http://lewrockwell.com/salerno/salerno17.1.html

Neshant · Post by **Neshant** » 01 Apr 2013 09:31

BAIL-IN : The next banker scam word you need to familiarize yourself with

What should be happening is that shareholders and unsecured creditors (meaning stock holders not depositors) of banks need to be taking losses first, thereby avoiding the need for a bailout by taxpayers. However they will be putting depositors first in the firing line.

Beware, banks are now changing the definition of the word unsecured creditor to mean depositor.

http://www.fdic.gov/about/srac/2012/gsifi.pdf

But, I guess the whole world is planning for a massive bail-in of insolvent banks using despositors & taxpayer money.

http://www.silverdoctors.com/fdic-bank- ... btf-banks/

TSJones · Post by **TSJones** » 01 Apr 2013 18:44

Russkis won't help Cyprus depositors says minister of money:

http://finance.yahoo.com/news/russia-wo ... 20444.html

....except on a case by case basis.

Yeah, especially since they already have their money withdrawn. Grin.

RamaY · Post by **RamaY** » 01 Apr 2013 19:01

^^^ Neshantji

Just by redefining the role of depositors they solved the Banking crisis. All these days the BASEL requirement is to keep a reasonable % of deposits aside so the bank can meet rainy days - this is called capital requirements.

Since the deposits themselves are used as the collateral for capital requirement, then what is the need for BASEL accord?

For example if bank has $100, it used to put aside $8-10 as capital requirements and invest/loan the remaining. Now it can invest/loan/gamble all $100s and take if it wins the gamble and pass the losses to depositors if it loses.

akashganga · Post by **akashganga** » 01 Apr 2013 19:10

Suraj wrote:Remarkably, the US is going the Indian way, with the lack of job growth in the formal economic sector leading to the growth of a vast informal economy. Predictably the MSM parrots it as bojitiv newj:
Shadow Economy Shows Joblessness Less Than Meets U.S. Eye
America's shadow economy includes activities that are actually illicit -- prostitution and drug dealing -- and more benign jobs like working construction for a day for cash, or even the $2 a kid that Kalmes gets for walking neighborhood children to the bus. Added together, economists estimate $2 trillion could be involved.
Such informal arrangements, while providing a safety net of last resort for workers like Kalmes, also may provide answers to puzzling discrepancies in economic data. One example: Explaining why retail sales have outpaced gains in reported income for almost four years, said Bernard Baumohl, chief global economist at the Economic Outlook Group LLC in Princeton, New Jersey.

Retail sales have grown at an annual rate of 3.5 percent or more since September 2010, even as taxes have increased and jobless benefit eligibility has shrunk to 73 weeks or less from 99 weeks in some states. Unemployment (USURTOT) is 7.7 percent, up from 4.4 percent in 2007, and income rose just 2.2 percent in the 12 months through January.
"There could very well be a much-larger than expected underground economy at work here that is making a contribution," Baumohl said.

US has a huge underground economy. Much of the 10 to 20 million illegals in the US live on cash outside the banking or tax system. Most of these illegals are from mexico and other latin american countries and live in a parallel economy not officially included. I have even seen may cash only indian and chinese restaurants, and shops and many of whom I am sure never get into books of records.

Suraj · Post by **Suraj** » 01 Apr 2013 19:59

Yes, I know. In my experience most Indian restaurants were at least willing to take credit above $10 or gave a discount for cash; I've encountered Chinese places that bark 'cash only' no matter what the bill is.

However the point of the article is that the underground economy has gone mainstream, from just some fringe immigrant or illegal alien related avenue. I had to laugh at the MSM characterizing people taking to prostitution to pay the bills as examples of 'unemployment is not as bad as official numbers report! See why retail numbers are better than what official employment data suggests! great success!'

pentaiah · Post by **pentaiah** » 02 Apr 2013 02:01

I have not seen any Indian stores or restaurants with cash only, business. Yes I have seen minimum requirement of $10 and no American Express

But Chinese and Korean stores yes cash only are many

Rama y ji the banks all have to have seed capital to incorporate and in addition have to have capital requirements met under Basel Iii etc

As of now if the EU asks the banks to maintain 5.5 % as reserve
Then 8 or 9 top banks need billions in cash infusion to operate

vishvak · Post by **vishvak** » 02 Apr 2013 02:12

So after all the propaganda about lifestyle by USA now it has come to me about underground economy of USA. Too bad for me it took so long to come to me.

By the way can someone explain how bonds with certain claimed rating and value can, after purchase, collapse in value? Can its rating remain the same even after collapse?

akashganga · Post by **akashganga** » 02 Apr 2013 04:31

vishvak wrote:So after all the propaganda about lifestyle by USA now it has come to me about underground economy of USA. Too bad for me it took so long to come to me.

By the way can someone explain how bonds with certain claimed rating and value can, after purchase, collapse in value? Can its rating remain the same even after collapse?

America has a large population of more than 300 million people. About 40% are classified as poor. Wherever there is a large number of poor people you can find underground economy. Most of the underground economy is in the hands of latinos and poor african americans. Some asian businesses also want only cash. Where there is cash transaction you can be assured not all of the cash goes into official books.

TSJones · Post by **TSJones** » 02 Apr 2013 05:47

akashganga wrote:
vishvak wrote:So after all the propaganda about lifestyle by USA now it has come to me about underground economy of USA. Too bad for me it took so long to come to me.

By the way can someone explain how bonds with certain claimed rating and value can, after purchase, collapse in value? Can its rating remain the same even after collapse?
America has a large population of more than 300 million people. About 40% are classified as poor. Wherever there is a large number of poor people you can find underground economy. Most of the underground economy is in the hands of latinos and poor african americans. Some asian businesses also want only cash. Where there is cash transaction you can be assured not all of the cash goes into official books.

Actually it's only a little over 15% living in poverty.

http://www.nytimes.com/2011/09/14/us/14 ... d=all&_r=0

A bond can shrink in value because the market demand for the bond can rise up or down depending on the stated interest rate of the bond when issued. If a bond is only paying 1% interest and inflation goes to 3% then the bond goes down in value. However you can alays hold the bond until the stated expiration date and get the full face value.

akashganga · Post by **akashganga** » 02 Apr 2013 07:12

TSJones wrote:
Actually it's only a little over 15% living in poverty.

http://www.nytimes.com/2011/09/14/us/14 ... d=all&_r=0

A bond can shrink in value because the market demand for the bond can rise up or down depending on the stated interest rate of the bond when issued. If a bond is only paying 1% interest and inflation goes to 3% then the bond goes down in value. However you can alays hold the bond until the stated expiration date and get the full face value.

15% of US population of 300 million translates to 45 million people which is a lot. If you go round inner cities in the US this poverty is very visible.

Prem · Post by **Prem** » 02 Apr 2013 09:35

http://www.forbes.com/sites/matthewherp ... ads-water/
Why Big Pharma Won't Get Its Piece Of The $1.2 Trillion Global Drug Market

The global market for prescription drugs will grow from $950 billion now to $1.2 trillion in 2016, according to a new report released today. But Big Pharma may sit out much of the growth as patents on big-selling drugs expire and people fast-growing markets such as China, Russia, and Brazil buy generic drugs from local manufacturersFor the record, when we talk about emerging markets in pharma, we’re talking about: Brazil, India, Russia, Argentina, Egypt, Indonesia, Mexico, Pakistan, Poland, Romania, South Africa, Thailand, Turkey, Ukraine, Venezuela, and Vietnam. In these markets, the products are not just generic companies, like Teva or Mylan, they’re often small and local, too. And that’s where much of the growth will be – although every big drug maker is fighting to get some of this growth.In the U.S. and Europe, though, growth will be harder to come by, as these countries try to control cost. The drug industry will actually pull out of its research drought, IMS says, bringing 35 new medicines to market each year, on average – than it has in any of the previous five years. These might include medicines against’ Alzheimer’s being developed by Eli Lilly and Pfizer, and a likely new drug for multiple sclerosis from Biogen Idec.But more than anything else, the drug business in Europe, the U.S., and Japan will be focused on cancer and diabetes. Want an explanation for why AstraZeneca and Bristol-Myers Squibb bid for Amylin Pharmaceuticals? Look no further.That may not be enough to make up for the massive waves of patent expirations that are still going to be buffeting the drug business, though. Over this period, more than $127 billion in annual sales will be lost as drugs go generic. Here, to end, is a list of all the brands that will go off patent in big markets over the next five years. It is a list of many of the biggest products on the market today.

Singha · Post by **Singha** » 02 Apr 2013 14:43

financial times:

Scramble to find Cypriot cash escape route
By Michael Stothard in Nicosia and Courtney Weaver in Limassol
©Bloomberg
The hunt is on to find ways to circumnavigate the new draconian capital controls in Cyprus and get money off the island.
At least three people have attempted to flee the island in recent weeks with more than €200,000 in cash on their person, according to official sources. The money was in all cases confiscated and the people questioned by the authorities.

Individuals have only been allowed to take €1,000 a day out of the country since Thursday under strict capital controls designed to prevent a bank run. The imposition of the eurozone’s first ever capital controls followed the re-opening of the country’s two banks for the first time after the European Union and International Monetary Fund bailout.

Amid the financial confusion that has characterised recent weeks, police have stepped up their security at the marina in the southern town of Limassol, in a bid to combat those trying to get money off the island by boat. Others have, it seems, approached the problems with more sophistication.

Sergei Tyulenev, a Russian businessman, says he received a call on Thursday – the day the capital controls were implemented – from Cypriots he did not wish to identify offering to help him move what he implied was more than €1m out of a collapsing local bank.

The move would have seen his money transferred from the now-failed Laiki Bank, where deposits over €100,000 are likely to see substantial write-offs, to Hellenic Bank, a comparatively healthy Cypriot bank.

There was a catch though, on top of the illegality of the move. “They said I had to pay €200,000 up front. I refused,” said Mr Tyulenev, speaking from Limassol, a town dubbed “Limassolgrad” for its high proportion of Russian residents.

The Financial Times has seen no official reports of illegal financial dealings at the banks. Those calling Mr Tyulenev may not have been able to follow through with their offer or may have been stopped in their attempts by the financial regulators.

But concerns have also been raised in Brussels that politically-connected depositors on the island have been able to move their cash out of Laiki and Bank of Cypus, even though banks were closed from the start of the crisis.

“There are some dubious capital outflows out of Cyprus as we speak,” one senior eurozone official directly involved with negotiations with Cypriot officials said before the banks had reopened. “I’m sure it’s ‘the friends’, and the friends are not only Russians.”

Many foreign depositors had already sought to move money out of Cyprus by legitimate means before the crisis struck, seeing the writing on the wall for the banking sector as early as from the end of last year.

Some 18 per cent of the deposits held in Cypriot banks by residents of other eurozone countries were pulled out in February, according to figures from the Central Bank of Cyprus. Such deposits in Cyprus had fallen 41 per cent since last June to €3.9bn.

But there are also concerns that large sums flowed out of the two banks just before the first bailout package was signed in the early morning hours of March 16, and an inquiry has now been launched looking into who took money out and what knowledge they had at the time.
Additional reporting by Peter Spiegel

anmol · Post by **anmol** » 03 Apr 2013 19:13

pentaiah · Post by **pentaiah** » 03 Apr 2013 20:55

Watch this space for new filmy series

The Transporter in Cyprus
*ing John Statham and leading lady Miss Euro ecapades

Theo_Fidel · Post by **Theo_Fidel** » 03 Apr 2013 23:14

akashganga wrote:15% of US population of 300 million translates to 45 million people which is a lot. If you go round inner cities in the US this poverty is very visible.

The worst poverty is actually in rural areas. Over the past few years the urban/city folk have been busy pulling the cash grants that were keeping these areas viable. Now they are collapsing into poverty.
-------------------------------

Hah! some of us have been saying this on wages for a while now...

http://www.theatlantic.com/business/arc ... ps/274470/

In the beginning, it was just the "Greek debt crisis". Then markets realized Portugal, Ireland, Italy, and Spain were in bad shape too, and the PIIGS (or GIIPS) were born. But now Cyprus and Slovenia have run into trouble as well, giving us the ... SIC(K) PIGS? At this rate, we're going to have to buy a vowel soon, assuming Estonia doesn't end up needing a bailout.

The euro crisis is entering its fourth year, and, sorry world, this won't be its last. Now, its long periods of boredom have gotten a bit longer, and its moments of sheer financial terror a bit less terrifying ever since the European Central Bank (ECB) promised to do "whatever it takes" to save the common currency. But, as Cyprus and Slovenia show, the battle for the euro isn't over yet. Not even close.

The euro is the gold standard minus the shiny rocks. Both force countries to give up their ability to fight recessions in return for fixed exchange rates and open capital flows. But giving up the ability to fight recessions just makes it easier for recessions to turn into depressions. And that puts all of the pressure on wages to adjust down when a shock hits -- the most painful and destructive way of doing things.

But the gold standard had an even bigger design flaw than creating depressions. That was perpetuating depressions. Under the rules of the game, countries short on gold were supposed to raise interest rates, which would push down wages, and push up exports. More exports would mean more gold, and then lower interest rates. But there was an asymmetry. Countries needed gold to create money, but countries didn't need to create money if they had gold. During the Great Depression, the U.S. and France sucked up most of the world's gold, but didn't turn it into money out of fear of nonexistent inflation. Countries that needed gold needed to push down wages even more to make their exports competitive -- not that there were any booming markets for them to export to, due to the self-inflicted economics wounds of the U.S. and France. Instead, the depression just fed on itself.

ramana · Post by **ramana** » 04 Apr 2013 03:02

So what happened to the French gold after the defeat in WWII? Hitler took it? Or was it all paper gold?

Anand K · Post by **Anand K** » 04 Apr 2013 08:10

Anyone remember the "Balance of Wealth" thread.... there was quite a bit of gyaan from SS, Kgoan, Calvin and Acharya on the stolen Gold-Art-Precious Stones thingie and on how narcotics and the above stuff is the ballast for money laundering. Too bad it wasn't archived here..... It was in that heated thread I got my first dekko at Loretta Napoleoni.

habal · Post by **habal** » 04 Apr 2013 08:49

Is it possible that to fund all these EU-US wars, the banks have had to stop subsidizing various subsidy-dependent EU economies. It looks like so much wealth has just disappeared from the world, where has all that been invested into. There is as such zero growth in most of major developed economies. OR are colonies being developed in other planets out of knowledge of general public, which requires so much resources being sucked out of banks. Where is all this money going ? I don't think all aspects of this is being revealed as yet. Long back, Reagan's star wars budget seemed to be too heavy for US to bear, so for public consumption that seemed to have been abandoned, as social programs had to be funded. But it seems like they have gone underground and gone ahead with most parts of that program. So the financial implications would be then similar. Nothing would happen on ground, yet all money would vanish as well. It deserves a

icon were it not such a con.

Because nothing else can explain sudden evaporation of wealth over the past few years. Afterall these countries have people who are mostly productive, pay some taxes, do some business, they have sustained themselves for centuries and then how can all of a sudden the skies fall down and that too without much ado.

shyam · Post by **shyam** » 04 Apr 2013 09:59

That was not wealth, but debt masquerading as wealth.

pankajs · Post by **pankajs** » 04 Apr 2013 21:18

Fed's Fisher: "Too big to fail" banks have unfair advantage

(Reuters) - Large banks that are thought likely to get a government bailout if they fail have an unfair advantage that should be removed, a top Federal Reserve official said on Thursday.

"There is a cost of funding advantage and it is substantial. And it is unfair," said Dallas Fed President Richard Fisher of large banks whose implicit government guarantee makes them too big to fail. "We need to level the playing field."

Watch out folks!

Neshant · Post by **Neshant** » 04 Apr 2013 22:03

It's meaningless yabbering as the federal reserve main purpose for existence is perpetuating the monopoly of the large banks. The large banks set up the federal reserve for that very purpose in 1913.

Besides the fed has offloaded trillions of bad gambling bets of these banks onto taxpayers, wage earners and savers. Did the idea that these banks are a monopoly only strike that fed chairman now?

It was Dr. Elizabeth Warren who raised the issue when questioning bernanke.

Check out how she catches bernanke as he tries to lie about AIG share holders being wiped out.

TSJones · Post by **TSJones** » 05 Apr 2013 01:57

Neshant wrote:It's meaningless yabbering as the federal reserve main purpose for existence is perpetuating the monopoly of the large banks. The large banks set up the federal reserve for that very purpose in 1913.

Besides the fed has offloaded trillions of bad gambling bets of these banks onto taxpayers, wage earners and savers. Did the idea that these banks are a monopoly only strike that fed chairman now?

It was Dr. Elizabeth Warren who raised the issue when questioning bernanke.

Check out how she catches bernanke as he tries to lie about AIG share holders being wiped out.

But Bernanke wasn't lying. AIG shareholders did get wiped out. Lehmen Brothers did get wiped out. Bear Sterns was took over dirt cheap by Goldman so you might as well say Bear Sterns stockholders got wiped out too. The fact is, those companies (investment brokerages) that played the dirivatives market got badly codswalloped and Bernanke took a lot of *hit for it too until he stepped in and declared investment brokerages as part of the federal reserve system. And that stopped another Great Depression in its tracks. Please remember he not only must maintain the dollar (ie., the full faith and credit of the US banking system) but he's repsonsible for the nation keeping its jobs! Yee Gads! What a job! And so what does Warren do? "Good job, faithful servant"? Hell no! Interrupts him, cuts him off and tries to brow beat him. He got his Phd at Princeton(?) writing about Keynesian theory. He's a Keynesian scholar for Christ's sake! Talk about sending out an ivory tower nerd into the angry malestorm to save the nation! Now get out there and save us. And he did. Of course we gave him some mighty impressive tools to ge the job done. He also saved a number of foreign banks (Deustch Bank) which gripes me but Bernanke assures us he will get the money back. I think the guy may even make the US government some money on the deal if we let him.

Prem · Post by **Prem** » 05 Apr 2013 02:29

http://seekingalpha.com/article/1319461 ... silver-now
Sell Your Gold And Silver Now

I'm sure China, Russia, India, Turkey, Brazil, Kazakhstan, Korea, and many other non-Western nations will greatly appreciate you helping to drive the price lower so they can buy more metal at a lower cost.Having tumbled through important technical levels on Wednesday, gold and silver are set to become even cheaper in the days ahead and this will surely accelerate what will someday be looked back upon as one of the greatest transfers of wealth in history - from West to East.In the West, we print more paper money and sell gold while, in the East, they continue to trade in this same paper money for dumb 'ol gold that just sits there and provides no return.Though they keep this sort of thing secret and probably won't tell the world how much gold they own for many years, officials at China's central bank are no doubt buying the yellow metal as fast as it's being shed from the SPDR Gold Shares ETF (GLD).ilver ETF holdings such as those in the iShares Silver Trust (SLV) have been remarkably resilient amid the recent selling and this indicates still steady domestic demand, but U.S. hedge funds and U.S. futures traders just can't seem to get rid of their precious metals positions fast enough.Apparently, none of the factors that caused traders to bid the gold price up toward $2,000 an ounce a year-and-a-half ago are relevant any longer.arlier this year, I compiled a list of then-current reasons why U.S. investors were selling precious metals and it's worth reviewing:

RoyG · Post by **RoyG** » 05 Apr 2013 19:39

Jhujar wrote:http://seekingalpha.com/article/1319461 ... silver-now
Sell Your Gold And Silver Now

I'm sure China, Russia, India, Turkey, Brazil, Kazakhstan, Korea, and many other non-Western nations will greatly appreciate you helping to drive the price lower so they can buy more metal at a lower cost.Having tumbled through important technical levels on Wednesday, gold and silver are set to become even cheaper in the days ahead and this will surely accelerate what will someday be looked back upon as one of the greatest transfers of wealth in history - from West to East.In the West, we print more paper money and sell gold while, in the East, they continue to trade in this same paper money for dumb 'ol gold that just sits there and provides no return.Though they keep this sort of thing secret and probably won't tell the world how much gold they own for many years, officials at China's central bank are no doubt buying the yellow metal as fast as it's being shed from the SPDR Gold Shares ETF (GLD).ilver ETF holdings such as those in the iShares Silver Trust (SLV) have been remarkably resilient amid the recent selling and this indicates still steady domestic demand, but U.S. hedge funds and U.S. futures traders just can't seem to get rid of their precious metals positions fast enough.Apparently, none of the factors that caused traders to bid the gold price up toward $2,000 an ounce a year-and-a-half ago are relevant any longer.arlier this year, I compiled a list of then-current reasons why U.S. investors were selling precious metals and it's worth reviewing:

Yeah yeah...

...Meanwhile....

[youtube]Ilh5iUQIb4s&feature=youtu.be[/youtube]