Weekly Unemployment Claims Jump to 493,000
Submitted by
CalculatedRisk on Thu, 09/25/2008 - 4:44am (129 comments)
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What a free car? Or motorcycle? Just open a bank account in Spain.
Dead serious. Hahaha:
OMIGOD! Am I First?
Forecast - our first mild Depression
Nope, no pony for me either.
Damn Hurricane. Shoulda just washed more unemployed out to sea!
The Perfect Storm.
toast
wow, libor at 3.71
in case anyone doesnt have it
(202) 224-3121 is the Congressional Switchboard.
Just ask for your Congressman or Senators.
Phones are manned in 5 minutes (9 AM EST)
(202) 224-3121
What has been the recent high on the TED... yikes 3.36
I am so screwed.
Coming soon to a Depression near you.
I'm actually in favor of the bailout now.
A complete meltdown of the U.S. could insight violence--perhaps a world war.
I'd rather go down peacefully, myself.
j6p: just give them what they want so i can go back to regularly scheduled programming!
CR, what happens next week after they ram this abortion of a bill through and it FAILS TO WORK?
No more bullets in that pop gun.
TED is giving me a birthday present today. I'm 31.
TED 3.31
I wonder if they close a big bank on Friday to scare the House and Senate. Or, worrying about creating a panic, go with another small one.
I bet retail numbers are bad this Christmas.
Lets see, anyone working in financial industries ahs to be looking at their mortgage, job stability, future, and going "Oh Crap."
What if "the plan" doesn't work? The people will never believe these guys again.
OOps... it's much higher now.
Hanesbrands will close 9 plants, cut 8,100 jobs
The moves will eliminate the jobs of about 8,100 workers in the U.S. and Central America, while the company plans to add 2,000 jobs in Asia.
"Globalizing our supply chain, and eventually balancing production between Asia and the Western Hemisphere, is a critical plank in our strategic efforts to reduce costs, improve product flow and increase our competitiveness," said Hanesbrands Chief Executive Richard A. Noll in a statement.
Stick that in your shorts.
Comrade Baron Von Helmut III writes:
What has been the recent high on the TED... yikes 3.36
Comrade Baron Von Helmut III | 09.25.08 - 9:01 am |
I think 1987 was the last time TED was this high..
Comrade Bagholders,
Den has some interesting data,
The Market Ticker
Chart,
http://market-ticker.denninger.net/uploads/drain.png
Fed is DRAINING liquidity in what it calls a liquidity crisis. Why?
The have manufactured something here for the benefit of their Wall Street theives. Man the phones and faxes.
THIS MUST NOT STAND!
Nostrovia,
Can someone explain or link to an explanation for the difference between TED and LIBOR?
TIA
My rep came out in paper against the bill this AM.
Some things he gets. Capitalist going up and shouldn't be socialist going down. Right on.
Flip side is that he wants to cut taxes again and institutionalize the Bush tax cuts. Also eliminate any capital gains taxes for a few years.
It'll be hard to tax what ain't coming in.
CR, what happens next week after they ram this abortion of a bill through and it FAILS TO WORK?
No more bullets in that pop gun.
Comrade Baron Von Helmut III | 09.25.08 - 9:02 am | #
I think you are on to something Baron.
We are clipping the hedges while the house is on fire.
"Globalizing our supply chain, and eventually balancing production between Asia and the Western Hemisphere, is a critical plank in our strategic efforts to reduce costs, improve product flow and increase our competitiveness,"
When I read something like the above it makes me want to hunt him down and slap the crap out of him
So much for 'tickle down'. Instead we get 'plop down'. We spent it all in the good years giving it away to assholes. Now the tight years are here and they want more.
FDIC May Need $150 Billion Bailout as More Banks Fail (Update3) - Bloomberg.com
stealthwii@gmail.com writes:
TED spread calculated as the difference between the three month T-bill interest rate and three month LIBOR. The TED spread is a measure of liquidity and shows the degree to which banks are willing to lend money to one another.
from wiki
"What if "the plan" doesn't work? The people will never believe these guys again."
Deb, these guys are gone in 4 months. This is the last raid before they go. They don't care.
Misean:
Is that liquidity draining through the Fed or through average joes hitting their banks and removing money?
Can we tell the difference?
CR:
Any word on the status of the credit markets? Still frozen?
Thanks
Please explain what I am looking at here:
Comrade Bagholders,
Den has some interesting data,
The Market Ticker
Chart,
http://market-ticker.denninger.n...loads/ drain.png
Fed is DRAINING liquidity in what it calls a liquidity crisis. Why?
The have manufactured something here for the benefit of their Wall Street theives. Man the phones and faxes.
THIS MUST NOT STAND!
On CNBC a Congressman (D) who IS voting for this slush fund said he received calls that are 300-1 against.
Congress knows that we don't have any choice but to vote D or R so they can afford to ignore us.
Until the tipping point is reached where there can be a viable third party they can continue to ignore us.
The best thing to do is prepare, make money and wait for the day of reckoning.
This situation isn't analogous to the Depression; it's analogous to WWI.
A whole generation of young people being shoveled into a calamitous "plan" perpetrated by a dying aristocracy, aided and abetted by gray-haired old field marshals on both sides of the political divide.
The Depression and all the really nasty "ism" related stuff comes AFTER.
Now I never thought history could really top WWI in terms of obvious stupidity, but here we are again.
Comrade Bagholder homedad43,
That's TOMA. Nothing to do with people withdrawing funds.
That's a liquidity drain. That's why TED is going through the roof.
Nostrovia,
TED = Fear. TED is usually, I think, about .5 I think of TED as the FEAR index with anxiety = 1 to 1.5, Dread = 1.5 to 2.3, Panic = 2.3 to 3.0, Constipation = 3 and above.
. The TED spread measures the difference between the three month US Treasury Bill and the the 3-month Libor. It was originally the spread between the 3-month Treasury contract and the 3-month Eurodollar contract represented by Libor before the CME quit offering T-bill futures contracts - thus giving the name TED (Treasury - Eurodollar) spread.
Elevated readings in the indicator indicate an increased level of risk aversion in the market, as investors flock to short term T-bills which due to their credit quality and short time horizon are considered risk free, while Eurodollar futures are more representative of the credit quality of corporate borrowers.
The normal range is usually between 0.1% and 0.5%. I believe we've seen three times over the last 20 years where TED has been over 2%.. All precursors to major financial pullbacks.
Panic comes before constipation?
I always had it the other way.....
What I don't understand is this. To me its like in the movie Pulp Fiction. When Jules and Vincent have a problem they call Marcellus. He tells them not to worry that he is sending the wolf. Jules says "Shit negro - thats all you had to say"
Once they knew the help was coming they could relax.
The markets know they are going to get the liquidity soon. The only questions are other conditions. If as they say liquidity is the problem then they know their problem is solved. Why would there be a collapse now?
TED is the difference between 3-month Treasury and LIBOR.
So, right now TED = LIBOR because 3-month Treasury is ~0%
What's another $150B for FDIC?
I was playing monopoly with the kids last night and the rules clearly state "the Banker can never run out of money. If more money is needed, the Banker can simply write on any ordinary piece of paper". No joke. I almost fell off the sofa. Those folks at Parker Bros sure have a biting wit!
Perhaps they recognize that the bailout plan won't work -- can't work, since property prices are going to continue to fall. But if they can get the Democrats to hold it up for a while, they can blame everything that comes afterward on the Dems.
Jim Rogers on Bloomberg now blasting this plan.
my bad comrade baron. didn't see you post. I meant to say 3-moth LIBOR too. nice catch.
Jim Rogers echoes my view" right now the markets down 25%. what are they going to do next month when it's down 35% ? they've run out of ammunition."
Big calling day - and big protests planned:
Congress.org - Get informed, get involved
Media contacts (ask for the newsroom so you'll get a body):
Congress.org - Congress...sorg : Page not found
Bailout protest under way in nyc:
Naomi Klein protest
this protest plan has been covered in the wall st journal, wired, biz week etc - I think it'll be pretty big -pls come by NYC/NJ/CT/PA people
Drove my Chevy to the Feddy but the Feddy was dry
The credit crisis and record high gas prices have teamed up to drive the world's largest Chevrolet dealer out of business. Bill Heard Enterprises is closing all 13 of its stores today, the company told its local managers yesterday.
Insiders said the company notified the stores' general managers of the closing at 2 p.m. yesterday, Automotive News reported. It closed a store in Arizona earlier this month.
The Bill Heard dealerships relied heavily on the sale of pickups, which have slumped drastically since gas prices hit historic highs over the last several months. A pullback in dealer financing by GMAC also influenced the decision, reports said.
badger,, no problem.. last week I had a brain fart and said the FSLIC would take over WAMU...lol... sucks getting old.
So where is my ray of sunshine Tanta? I miss that acid tounge lapping the lobes of my brain first thing in the AM.
WWTS- what would Tanta say???????
I was playing monopoly with the kids last night and the rules clearly state "the Banker can never run out of money. If more money is needed, the Banker can simply write on any ordinary piece of paper". No joke. I almost fell off the sofa. Those folks at Parker Bros sure have a biting wit!
LMAO. Supposedly, Ben and Hank changed their last name from Parker.
Gil Scott-Heron - Winter in America
From the Indians who welcomed the pilgrims
And to the buffalo who once ruled the plains
Like the vultures circling beneath the dark clouds
Looking for the rain
Looking for the rain
Just like the cities staggered on the coastline
Living in a nation that just can't stand much more
Like the forest buried beneath the highway
Never had a chance to grow
Never had a chance to grow
And now it's winter
Winter in America
Yes and all of the healers have been killed
Or sent away, yeah
But the people know, the people know
It's winter
Winter in America
And ain't nobody fighting
'Cause nobody knows what to say
Save your soul, Lord knows
From Winter in America...
TED = Fear. TED is usually, I think, about .5 I think of TED as the FEAR index with anxiety = 1 to 1.5, Dread = 1.5 to 2.3, Panic = 2.3 to 3.0, Constipation = 3 and above.
You're right for the most part, but honestly, I don't think anyone really knows what TEDs above 3 represent.
We've never had them before, until the past week.
Uncharted waters.
And not in the "hey, maybe we'll find an oceanic shortcut to India" sense. More like in the Perfect Storm sense.
I am totally OT here, but I cannot believe how much worse the actual video of Tuesday's Senate hearings are than reading the news articles are.
http://www.c-spanarchives.org/library/includes/templates/library/flash_popup.php?pID=281281-1&clipStart=&clipStop=
Is the market going to trade today? Or are traders too scared to get short in front of this bill? Does any data matter while this bill is still on its way?
Everyone hated that chevy dealership from what I heard. Ripped off customers, and they were under a class action law suit for $50 Million I believe.
Actually I am more interested in what the troops do today.....and I think they are likely to send a message to everyone.
Troops meaning the peeps
sorry
Comrade Bagholders,
Jim Rogers has the money to get the flock out of this shite hole of a country. We're about to have every last penny stolen from us. We're stuck and flocked.
Nostrovia,
Is the market going to trade today? Or are traders too scared to get short in front of this bill?
I didn't write this on the discussion thread for the Bush speech, but I'm genuinely surprised he didn't declare a bank holiday for the markets the rest of this week while this plan gets worked out.
I couldn't imagine why else he would have wanted to take up 15 minutes of valuable airtime at 9pm on a Wednesday.
In retrospect, it was just 15 minutes of my and millions of others' time wasted. Hoocoodanode?
Any form Atlanta planning to protest at the Atlanta Fed ?
Bill Heard was far from being a saint of a dealer. My concern is for the continued loss of jobs. Thousands directly and 4x with the ripple effect throughout the communities and industry. Think about it.
You do not need to imagine conspiracies when you have the staggering imcomptency of the current administration.
Yes, like WWI, they can imagine failure; they will publish inaccurate numbers about the body count; and they will do the same dumb ass stuff over and over.
We need to bring industry back to this country, but its hard when you need your business to make a 10% profit each year just so you can get a 3% return after corporate and personal taxes.
So, the Bloomberg story on the FDIC needing a $150 Billion-Plus bailout, is that on top of the $700 billion?
There were over 900 comments to the bush post below. If everyone would send a fax or email or call there senator or representatives and express their disapproval of the bailout plan at taxpayer expense, the proposal might be delayed, discussed, or thrown out for a more prudent idea such as letting the free market clean out the risk takers. I sent faxes and emails to not only my own senators and reps but to those that are valiantly standing up and voicing their outrage over such a bailout plan. In addition, I told them I will not vote for any politician who votes for or supports such a bailout.
Jimmy Rogers said 'a pox' on both of their houses when referring to the current candidates for election.
Says they know nuts of whats happening and if we keep voting turkeys thats whats going to keep coming back.
Good thing Jim is in Singapore if i am not mistaken..LOL.
Frankly, I don't see how the announcement that they have passed "the plan" does anything to unfreeze the short term commercial paper market. Especially not if while they are announcing it, investors are busy pulling money out of MMFs.
Comrade Bagholder Doug,
I haven't done it...but I am today. I didn't think it would make any difference...but maybe it will.
Nostrovia,
Thats Ballgame Comrades: One would have to think so.
@deb: when playing monopoly, you dont need to write on paper if you run out of money. Just take the $1's and make them into $1000 bills. Then you can inflate away!
Anyone heard about this?:
BEIJING, Sept 25 (Reuters) - Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday.
Comrade Bagholders,
I repeat, the Fed is DRAINING liquidity right now. Why?
http://market-ticker.denninger.net/uploads/drain.png
I thought this was a liquidity crisis.
(Not really it's a solvency crisis...but that's what the asshats keep saying.)
Nostrovia,
has anyone asked why no other country is helping with this bailout? Kinda like a UN bailout thing? Why are we spending billion to bail out foreign banks and holders of debt.
"
"Globalizing our supply chain, and eventually balancing production between Asia and the Western Hemisphere, is a critical plank in our strategic efforts to reduce costs, improve product flow and increase our competitiveness," said Hanesbrands Chief Executive Richard A. Noll in a statement."
Like so many -- "a global business" when they want to cut jobs in the U.S., but a struggling American firm when they want tax cuts or preferences.
Perhaps calling wont make a difference, but I believe it has already.
Even if it doesnt work, it doesnt take much time and it will clear your conscience, because you can say your tried to stop this bill.
I'm calling not so much for me, but for my daughter.
(202) 224-3121
Iconoclast421: Just as soon as my bank opens I'm gonna snag a couple thousand George Washington's!
So, the Bloomberg story on the FDIC needing a $150 Billion-Plus bailout, is that on top of the $700 billion?
Yes. That money is for insured deposits in failed banks.
Just as soon as my bank opens I'm gonna snag a couple thousand George Washington's!
I'm pretty sure that if America gets to the point where you need cash to buy something, you won't have enough cash to do so.
Comrade Baron Von Helmut III writes:
has anyone asked why no other country is helping with this bailout?
I think the IMF will be willing to help in due course. I doubt the US will like ther terms though.
4tehlulz writes:
Anyone heard about this?:
Not true i believe, been refuted on CNBC.
As the US Dollar was surround by knife-wielding Senator and Secretaries, USD felt a plunge upon its back and turned to see who it was. Upon seeing, USD weakly summoned his voice to say:
"Et Tu Barney?!?"
Just do it:
Congress.org - Get informed, get involved
In case anyone wants to drop a note to Hank to let him know what you think, Patrick.net has this link
Intelius addresses core v2 - Results
Comrade Bagholders,
Two quick questions:
Nostrovia,
Comrade Misean
You heard Bush last night. Boooo Boooo be scared be cery scared.....pass this now.
I'd rather go down peacefully, myself
Peacefull rebellion, Ghandi as the model. The elite need us to function at some level or they have to do the work. The secret for being rich is to get a thousand slaves to work for you while they think they are working for themselves. CNBC was working hard to spin the bailout as restructuring for the average joe so he does not lose his pension. The pension will still be there but the actual wealth will be siphoned off. The parasites need the plebes working. At some point we have to be willing to lose what we "have" to regain our freedom. We have a chance to regain our bravery, and honesty. We will suffer either way. One voluntarily as human beings the other serfs. I am pissed but that does not mean we have to act in a way that causes physical damage to people or the enviornment. One simple way to start is to move your savings outside the system.
I haven't done it...but I am today. I didn't think it would make any difference...but maybe it will.
It does. This is how it works here. Before votes are committed, Congress floats that there are enough votes. Members gauge the reaction and react accordingly. The failed immigration bill is probably the best example. So keep it up.
This from today's UK Daily telegraph on the view from the city of London on the bailout proposal
Telegraph.co.uk: news, business, sport, the Daily Telegraph newspaper, Sunday Telegraph - Telegraph
Rate cut next... there goes the dollar.
What about that $25 B loan to the US auto mfgs which seems destined to be passed during of of this.
I know that not as devastating in magnitude but it is part of the pattern of throwing good money (taxpayer's money/risk) after bad .
Bailout Bill Nearly Done, Key Democrat Says
Wall Street Bailout: Bailout Accord Up In Air as Sources Say Deal Dead - CNBC
From the horses mouth.
You know, this bailout is like a really bad Country Western song.
If you don't pass this bill, you'll lose:
WHERE IS TANTA?
According to NY Sun, defaults hitting NYC
The Default Phenomenon Comes to N.Y. - September 25, 2008 - The New York Sun
From the horses mouth.
Or donkey's mouth.
Comrade Bagholders,
If this thing passes we all need to vote:
None of the Above!
That would truly scare the living F..K out of the elite.
Nostrovia,
Comrade Baron Von Helmut III:
Yeah, and if you pass it you'll lose all of the above PLUS
your dignity, your kids, your momma
your other assets and your um, backside
BB writes:
Bailout Bill Nearly Done, Key Democrat Says
I said earlier that bank lobbysists were hammering congress all night. And this morning Congress says they made "tremendous progress".
Bastards. VOTE THEM ALL OUT.
I have a question:
What if you throw a huge US bailout fundraiser and nobody comes?
Germany has said they will not play. We made the mess, we've got to deal with it.
And there are indications that China and Japan may not be too excited about increasing their already huge exposure to US debt.
I watched the CBO director last night in the House Hearings, and he said we wouldn't have a problem selling the treasuries, but I'm not so sure.
There is some global concern about how wise it is to keep bumping up our credit limit. When do these other countries start trying to prepare for an American implosion instead of continuing to prop up a sinking ship?
yeah right, Bush did look like a zombie and with that in mind I threw together yet again one more video mash-up on Bush introducing his new
Brain Trust
at: YouTube - Documents Reveal Bush Employed Torture and Techniques from Rogue Regime
hope you get a chuckle out of that chucklehead!!!
And if you pass this bill you will these bonuses too -
"If you don't pass this bill, you'll lose:
oh these bloody shorts!!!!! they killed whole US economy!!!
Comrade Bagholders,
CONgang spends months on a budget of $1.5T, but passes a bill worth half of that in 3 days. WTF!!!!!!!!
WTF do these assholes know that they aren't telling us! This is pure BULLST!
If I went to my boss and said I need $20K NOW or the whole company will fail, he would ask WHY? and if I didn't answer I'd likely be fired.
WHY IS THIS ANY DIFFERENT!?!
Nostrovia,
Hey, you can participate too!
buymyshitpile.com
Added "my stupid cat"
Comrade Baron Von Helmut III writes:
has anyone asked why no other country is helping with this bailout?
In all seriousness, do you really expect us to help you? The problems all started in the US, and everyone outside of the US has worked out (1) it's the US fault our own banks are in trouble; (2) they are not nearly in as much trouble as your banks; (3) other countries with more socialist tendancies will put their own people over their stock markets; (4)and the US "bailout" is nothing but a scheme to prop up GS and MS and a few other US banks; (5) all the fear mongering is a stunt to compel congress to make a bad decision Patriot Act style.
Sheesh, I could go on but really, why would any other government touch this with a barge poll. This is Iraq all over again.
German Finance Minister Blames US for Financial Crisis
German Finance Minister Blames US for Financial Crisis | Germany | Deutsche Welle | 25.09.2008
German Finance Minister Peer Steinbrueck deemed the US banking crisis an "earthquake" that will cost the US its role as a superpower of the world financial system. He stressed that German banks can cope with losses.
The world financial system will consequently become more "multi-polar," he predicted.
He reiterated Germany's refusal to set up its own bank bail-out scheme, saying the crisis was principally a US problem.
Read the last paragraph on top again.
Note that this is not an analyst saying that, it's the finance minister.
Somewhat off-thread, but no point in putting this below.
I didn't watch the Bush talk last night, but saw a snippet this morning. What really disheartened me was his comment that this handover of taxpayer funds will "enable the economy to get back on track again."
The model is broken. We SHOULDN'T go back to the same old track. I don't even think it's possible.
That track was steadily shifting wealth from the middle class to the wealthiest (poor already tapped out). I don't want that track.
And the fact GWB sees the goal as getting right back to where we were makes me oppose this plan.
"In all seriousness, do you really expect us to help you?" -sterlingerl
In all seriousness, do you really think any average citizen or poster here had anything to do with any of this? Whether "you" will help "us" has little to do with you, and more to do with Bush's friends in your government.
Denn. is correct...a reverse repo. happening today.
Temporary Open Market Operations - Federal Reserve Bank of New York
Have not seen one of these for a VERY LONG time.
These asshats must be stopped.
Ciao
MS
Oh, for fuck's sake, settle down. Yes, it is bad, very very bad, but it is not the End of the World bad. Jesus.
We are being manipulated by the news media and the PTB to pass this abortion of a bailout, stop hyperventilating already!
The IRS has remained above the fray so far. But gathering anger could encourage tax protests, organized and individual, if the U.S. govt. loses too much credibility.
U.S. has by far the largest voluntary good-faith tax system in the world built on trust in the govt.
Conservatives (and rich people) who have a slim hope of keeping lower CG rates and Bush tax cuts should stand firm against bailout.
The federal estate tax MUST be resolved soon because it is scheduled to TOTALLY DISAPPEAR on the first day of 2010. There could be a huge estate tax hit on the wealthiest, if protest rises in the streets.
Duke of Con Dao:
Yeah, I saw the look on his face.
What really struck me, before I started yelling "Bullshit!" at the screen was that his eyes were a bit more wide open than they appear to have been at the times of other speeches.
Definitely a "deer in the headlights" look. Not joking, either.
He thinks that we're screwed.
As to Germany and China/Japan.
They have their own problems. I wonder honestly whether the German finance officials consider this to be a favor - if true - and akin to weaning a junkie off the stuff.
In all seriousness, do you really think any average citizen or poster here had anything to do with any of this? Whether "you" will help "us" has little to do with you, and more to do with Bush's friends in your government - s0mebody
You voted for Bush. TWICE. Enough said.
I didn't vote for Bush ever.
MS:
What is a "reverse repo" and what would that mean?
Thanks
Actually as of now there are two reverse repos.
Usually the Fed does three or sometimes four regular repos. on Thursday's for the bank's weekend need for cash. Taking it out is just so ridiculous. THey will make this look horrible in the next few hours. May be even cause a bank run to be stopped.
Again these F!@#$%^& need to be stopped.
Ciao
MS
man... it is all about debt... US debt... not German debt or GB debt or China debt... US debt... all you american guys have something on credit... it is your economy, your choice, your cynism, your laziness... You exported your inflation for decades but now nobody want your dollars(read debt) anymore...
in fact, your government is insolvent, USA is insolvent...
credit, credit, credit... debt, debt, debt... stop it now or your children gonna HATE you!
If they pass this, then for one week next month, every American should mail every one of his bills to his local representative, with delivery confirmation. Then don't pay it.
Reverse Repo is removing cash from the system by borrowing back money from the primary dealers.
LIKE THEY HAVE ANY CASH TO LEND TO ANYONE NOW..
This is such a manipulated bullshit operation.
Ciao
MS
Vatican newspaper says crisis shows failure of 'new economy'
By Carol Glatz
Catholic News Service
VATICAN CITY (CNS) -- The current financial crisis pummeling the United States and beyond is a sign that the so-called "new economy" and its risky investments have failed, the Vatican newspaper said.
The booming growth of financial markets did not correspond to real growth or concrete development for society because it created an artificially robust gross national product, said a Sept. 24 article in L'Osservatore Romano.
The only real growth registered in this crisis has been "the commissions, profits of the banks and bonuses for the managers," it said.
The article, with the headline "A costly illusion," was written by Ettore Gotti Tedeschi, an Italian economist and professor of financial ethics at the Catholic University of the Sacred Heart in Milan, Italy.
The U.S. financial meltdown has been blamed on "the greed of managers and lack of regulations. But curiously, no one ever refers to the indirect responsibility of the government's economic policy" which, he wrote, tried to cover the lack of any real economic development with a booming Wall Street.
He said the U.S. government's proposed bailout may stave off any worst-case scenario for its troubled financial markets, but it will not repair the root causes of the crisis.
"Despite various attempts, the Western world does not know how to map out a model of development that is capable of guaranteeing stable wealth," the article said.
The West has "not succeeded with its new economy project, it did not succeed with accelerating growth in Asia by transferring low-cost production (there), and it did not succeed after inventing a boom in the GNP through risky financial models that were poorly conceived and badly regulated," it said.
"In order to maintain this sham GNP, the banks financed things that were not guaranteed" and that should not have been financed, like the subprime loans, it said. Financial institutions created an "economic growth out of debt and, therefore, (created something) very risky," it added.
The article said the lesson to be learned is that nations cannot build a healthy economy or experience real development if it is not based on "balanced demographic growth."
It said the world economy also needs to be run responsibly and transparently with precise rules.
The L'Osservatore Romano article ran the same day Rome's Pontifical Gregorian University hosted a seminar.
Sponsored in part by the international investment bank Barclays Capital, the seminar gathered speakers from Italy's religious, political and economic fields to discuss social development, environmental protection and financial markets.
Giulio Gallazzi, founder and president of the financial and business consulting firm Socially Responsible Italia, was one of the conference speakers.
He said when an economy is based predominantly on the health of its financial markets and not on growth in the industrial, manufacturing and service sectors, the bubble of wealth that is generated is more difficult to distribute to the rest of society.
The seemingly paradoxical term "jobless growth," he said, indicates this problem in which a nation's GNP increases without an increase in employment, which means much of the new wealth does not trickle down to the working classes.
Nations need to reconsider now-debunked economic theories from the last century and create new rules that favor long-term growth and investments that involve "measured and manageable risk," he said.
Businesses and stockholders should also engage in "value sharing" in which they choose investment opportunities not solely for their chances at reaping a profit "but as an opportunity to contribute to the common good" and sustainable development.
He and other speakers emphasized the importance of having banking institutions and foundations concentrate on helping the local communities in which they are based.
Besides offering microcredit and small-business loans, local projects should also include scientific, humanistic and cultural initiatives that foster a person's "full development," the speakers said.
Comrade Bagholder MS,
"Denn. is correct...a reverse repo. happening today.
http://www.newyorkfed.org/market...mo/dmm/ temp.cfm
Have not seen one of these for a VERY LONG time.
These asshats must be stopped."
I KNOW! This is friggin' insane. THEY ARE THE ONES LIGHTING A FIRE TO STAMPEDE US!
B&P need a super sized spiked unlubricated hoopajoop!! And then a quick hanging!
Nostrovia,
With joblessness and poverty on the rise, here is an innovative solution proposed by LA state Rep. John LaBruzzo: pay poor women to get sterilized.
Worried that welfare costs are rising as the number of taxpayers declines, state Rep. John LaBruzzo, R-Metairie, said Tuesday he is studying a plan to pay poor women $1,000 to have their Fallopian tubes tied.
"We're on a train headed to the future and there's a bridge out," LaBruzzo said.
LaBruzzo: Sterilization plan fights poverty - NOLA.com
Can we just go right to Godwin's Law on this one?
Comrade Bagholder CSC,
Hell let's just go with "A Modest Proposal" for chrssakes.
Nostrovia,
Suggestion--when communicating with Congress person, promise a donation if pleased with the vote, and v.v.
See Mom, I'm learning to think before I speak.
@ Brneckie,
Brneckie | Homepage | 09.25.08 - 9:58 am | #
Not all of us have been irresponsible, personally, I have no debt. My home is paid for and I don't owe anything but my taxes on it and my associated comsumer related expenses of gas, electricity, garbage, water, and variable (and reduceable cable and phone)services.
Freaking out much about how global this shit is? Yeah, me too.
I'm depressed.
Where's my pony?
Honestly, I think I'm at disaster capacity. System overload about to happen.
I urge all of you to contact your reps. and tell them about this reverse repo. process.
They, of course, will have no clue what you are talking about but enough people do it it might make someone go look it up before this BS gets passed.
DO it.....NOW
Ciao
MS
The TED spread is a direct result of this reverse repo.
They are INTENTIONALLY causing this so that the bank lobbyists have "proof" of the credit market seizing up.
Bloomberg.com:
Personal Finance
And of course this is perfect environment for the market to spike over 200 pts.
SHEER MADNESS
Ciao
MS