on Debt. I guess he is Kucinich's chief economist (Kucinich had an economist?)
Look at this observation:
The Treasury emphasized that it was under a Sunday afternoon deadline to finalize the takeover details before the Asian markets opened for trading. This concern reflects the balance-of-payments and hence military dimension to the bailout. The central banks of China, Japan and Korea are major holders of these securities, precisely because of the large size of Fannie Mae and Freddie Mac – their $5.3 trillion in mortgage-backed debt that you mention, and the $11 trillion overall U.S. mortgage market.
It probably isn't helping all of us posting the biggest doom scenario analysts on the web. But, hey, since when has unfettered and corrupt Capitalism not led to Panics?
Banks and brokers today held a session for netting derivatives transactions with Lehman, or canceling trades that offset each other, in case the New York-based firm files for bankruptcy before midnight New York time.
``The purpose of this session is to reduce risk associated with a potential Lehman Brothers Inc. bankruptcy filing,'' the International Swaps and Derivatives Association said in a statement today. The ISDA includes 218 banks, brokerages, insurance companies and other financial institutions from the U.S. and abroad.
Also apparently standing on the sidelines of the Lehman debacle are the world’s sovereign wealth funds, which devoted billions from their massive and still-growing pools of capital to shoring up the likes of Citigroup, Merrill Lynch and Morgan Stanley, only to see the value of their investments plummet as the financial crisis widened.
“The sovereign wealth funds have decided they’re not going to come to the rescue of every embattled financial institution,” said John Habib, a lawyer for Washington firm Kalbian Hagerty in Abu Dhabi
Roubini (middle column) is saying if Lehman is allowed to fail it will be like dominoes and he isn't even mentioning AIG. Are we looking at the big one here?
AIG owns a half trillion dollars in CDS.
When Fannie and Freddie were rescued by the Treasury it triggered a "credit event". Thus all the CDS associated with Fannie and Freddie, and that means trillions of dollars worth, had to be unwound.
AIG was already losing billion. Now they are being forced into extreme measures.
New York - US insurer AIG, suffering from a declining share price and facing a possible downgrading of its credit rating, is being forced to extreme measures, including perhaps selling off subsidiaries to extricate itself from billions of dollars in losses, the Wall Street Journal reported in its online edition Sunday. Citing an AIG insider, the respected US business journal said AIG was considering a teleconference with analysts on Monday, at which the process of restructuring would be outlined.
AIG, which has a worldwide presence in the insurance industry, has suffered a 45-per-cent drop in its share price over just a few weeks.
The company lost more than 18 billion dollars in the last three quarters due to enormous write-offs from the ongoing US credit crisis.
To reprise a couple of paragraphs from my last blog entry:
"Our new Chinese creditors have demanded their first payment. Several times in the last week, Chinese officials have stated in no unceertain terms that they would be VERY UNHAPPY if their Fannie and Freddie bonds weren't honored in full. Forget the Fed: US economic conditions are now dictated by the People's Bank of China.
"This is what happens to debtor countries. Read my prior dairies explaining the book "Bankruptcy 1995." This is only a harbinger of national debt peonage to come."
Man and the United States has been brazenly selling off our country for 30+ years, super accelerated by Bush Corp.
Did you know literally we have the Indian caucus in the Senate. Now you might think that means American Indians...but in fact India uses Indian Nationals, who have gained citizenship in the United States to push through their agenda. I believe the same thing is true of Israel and surely the UAE considering they are buying up U.S. assets right and left. China, it's truly unbelievable and they control U.S. debt as I understand it.
and how BEA is no longer going to track any of these foreign purchase of US assets, sovereign wealth funds.
Overall, I feel the United States is viewed as some sort of abandoned land, where it is viewed only as a territory to be pilfered.
Every damn thing, including and I'm sorry but it's true, by both parties, is being generated by foreign and corporate agendas. The American people be damned, the US national interest be damned, investment in America and the people who are citizens of it...be damned.
My next diary will be about our foreign creditors. I've been saving up articles and charts for that.
The only way this country is going to survive in something resembling its current state is by living within its means. It isn't as hard as it sounds. Really.
The days of the American Empire of Debt are numbered.
My wife and I are going cold turkey on credit. We have stopped using all credit cards and do not charge anything. If we want something, we save up for it.
Most people think we are the richest nation in the world. That stopped being true about 1/2 way up your hockey stick. We are now the largest debtor nation in the world and the numbers are increasing ever more rapidly every day.
What bothers me is that sooner or later, nations like China and Japan are going to call in their markers and demand their money back. That will have two immediate effects:
(1) The money we were borrowing will no longer be available to keep our economy afloat.
(2) We will have to start repaying the debt. That money will have to come from Taxes or massive spending cuts.
We may not survive the withdrawal symptoms of this addition.
Taxing and spending is much more fiscally responsible than borrowing and spending
You are absolutely right that democrats and most recently Obama have stumbled in relaying this message
They also have not successfully or assertively shown that taxes are a necessity in a civil society - someone has to maintain the roads, pay the police and firemen, pay the costs of the military, deliver the mail and so forth.
The golden opportunity was totally missed in the Mineapolis bridge collapse to hammer this point home that you can not continue to handle such safety and security related matters on the cheap, and someone has to pay for this.
The other missed point is the one that the tremedously wealthy Roosevelts once were so successful with - and TR in particular, that the wealthy benefit greatly from the privileges of a free society and therefore have a moral obligation to contribute back to that society
I hope everyone you know pipes up and raises heck. We all work hard too hard to try to make ends meat and support our families. I own my own business and have not received a full paycheck in months (tough on family). The financial troubles of our state is something that everyone needs to take seriously and stop bailing out all the banks and mortgage companies that got themselves there with greed. All we want is a means to feed our families and pay our bills we did not make millions on faulty loans and the like. I want our government to bail out the Americans not these corrupt businesses; the people of this state are not corrupt but the companies sure are!!! Lets make millions than get bailed out!!!
on Debt. I guess he is Kucinich's chief economist (Kucinich had an economist?)
Look at this observation:
It probably isn't helping all of us posting the biggest doom scenario analysts on the web. But, hey, since when has unfettered and corrupt Capitalism not led to Panics?
It just keeps getting worse
We are looking at a very Black Monday.
Barclays pulls out of Lehman sales talks.
Roubini (middle column) is saying if Lehman is allowed to fail it will be like dominoes and he isn't even mentioning AIG. Are we looking at the big one here?
AIG owns a half trillion dollars in CDS.
When Fannie and Freddie were rescued by the Treasury it triggered a "credit event". Thus all the CDS associated with Fannie and Freddie, and that means trillions of dollars worth, had to be unwound.
AIG was already losing billion. Now they are being forced into extreme measures.
It looks like AIG is now in trouble due to selling derivatives on credit debt obligations as credit swaps.
Anyone care to map out this Medusa of exotic investment vehicles and how they work?
To reprise a couple of paragraphs from my last blog entry:
"Our new Chinese creditors have demanded their first payment. Several times in the last week, Chinese officials have stated in no unceertain terms that they would be VERY UNHAPPY if their Fannie and Freddie bonds weren't honored in full. Forget the Fed: US economic conditions are now dictated by the People's Bank of China.
"This is what happens to debtor countries. Read my prior dairies explaining the book "Bankruptcy 1995." This is only a harbinger of national debt peonage to come."
Man and the United States has been brazenly selling off our country for 30+ years, super accelerated by Bush Corp.
Did you know literally we have the Indian caucus in the Senate. Now you might think that means American Indians...but in fact India uses Indian Nationals, who have gained citizenship in the United States to push through their agenda. I believe the same thing is true of Israel and surely the UAE considering they are buying up U.S. assets right and left. China, it's truly unbelievable and they control U.S. debt as I understand it.
and how BEA is no longer going to track any of these foreign purchase of US assets, sovereign wealth funds.
Overall, I feel the United States is viewed as some sort of abandoned land, where it is viewed only as a territory to be pilfered.
Every damn thing, including and I'm sorry but it's true, by both parties, is being generated by foreign and corporate agendas. The American people be damned, the US national interest be damned, investment in America and the people who are citizens of it...be damned.
That's the overall message.
My next diary will be about our foreign creditors. I've been saving up articles and charts for that.
The only way this country is going to survive in something resembling its current state is by living within its means. It isn't as hard as it sounds. Really.
The days of the American Empire of Debt are numbered.
My wife and I are going cold turkey on credit. We have stopped using all credit cards and do not charge anything. If we want something, we save up for it.
Most people think we are the richest nation in the world. That stopped being true about 1/2 way up your hockey stick. We are now the largest debtor nation in the world and the numbers are increasing ever more rapidly every day.
What bothers me is that sooner or later, nations like China and Japan are going to call in their markers and demand their money back. That will have two immediate effects:
(1) The money we were borrowing will no longer be available to keep our economy afloat.
(2) We will have to start repaying the debt. That money will have to come from Taxes or massive spending cuts.
We may not survive the withdrawal symptoms of this addition.
"A capitalist will sell you the rope you will hang him with, if he can make profit on it." - Lenin
Why is tax and spend bad, but borrow and spend isn't?
buy somehow...and borrowing the money for it, ain't the way.
If we can't borrow...If we can't tax...then where the heck is the money we spend suppose to come from?
I gave up the "grows on trees" theory a long time ago.
Then I for one say we no longer have a democracy
Taxing and spending is much more fiscally responsible than borrowing and spending
You are absolutely right that democrats and most recently Obama have stumbled in relaying this message
They also have not successfully or assertively shown that taxes are a necessity in a civil society - someone has to maintain the roads, pay the police and firemen, pay the costs of the military, deliver the mail and so forth.
The golden opportunity was totally missed in the Mineapolis bridge collapse to hammer this point home that you can not continue to handle such safety and security related matters on the cheap, and someone has to pay for this.
The other missed point is the one that the tremedously wealthy Roosevelts once were so successful with - and TR in particular, that the wealthy benefit greatly from the privileges of a free society and therefore have a moral obligation to contribute back to that society
See www.biggestbank.com
I hope everyone you know pipes up and raises heck. We all work hard too hard to try to make ends meat and support our families. I own my own business and have not received a full paycheck in months (tough on family). The financial troubles of our state is something that everyone needs to take seriously and stop bailing out all the banks and mortgage companies that got themselves there with greed. All we want is a means to feed our families and pay our bills we did not make millions on faulty loans and the like. I want our government to bail out the Americans not these corrupt businesses; the people of this state are not corrupt but the companies sure are!!! Lets make millions than get bailed out!!!
email system is incorporated on this site. You can email anyone. For me (admin) hit the contact button.
I changed it to blue and it works. Actually, I like the blue better.....thanks
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