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Signs of economic collapse (4 posts)

  1. truthmod
    Administrator

    Maybe this will wake/shake people up a little bit.

    Crash Alert: 5 Steps to Take Immediately ... (by Martin Weiss) 7/30/2007 8:00:00 AM http://www.moneyandmarkets.com/press.asp?rls_id=87...

    Mass Foreclosures Threaten the U.S. http://efinancedirectory.com/articles/Mass_Foreclo...

    Oil Settles Above $78, Setting Record 7/31/07 http://biz.yahoo.com/ap/070731/oil_prices.html?.v=...

    Is Cheney Betting On Economic Collapse? http://www.counterpunch.org/whitney07052006.html

    The Bush-Cheney team has racked up another $3 trillion in debt in just 6 years. The US national debt now stands at $8.4 trillion dollars while the trade deficit has ballooned to $800 billion nearly 7% of GDP.

    Metals - Gold tops 685 usd as dollar plunges to new all time low against euro http://www.forbes.com/markets/feeds/afx/2007/07/24...

    Gold climbed above 685 usd as the dollar plunged to a new all time low against the euro, further increasing the appeal of the metal as an alternative asset to the ailing US currency.

    CALIFORNIA FORCLOSURES INCREASE 799% OVER SAME PERIOD LAST YEAR http://www.latimes.com/business/la-fi-foreclose25j...

    A sagging real estate market and tighter lending standards are exacting a rapidly growing toll on Californians, forcing them from their homes in record numbers, figures released today show.

    Foreclosures in the state during the second quarter totaled 17,408, up 799% from the same period last year. The current rate handily eclipsed the previous foreclosure peak set in 1996, when the state was in the final throes of six-year slump.

    Bear Stearns Wheel Comes Off the Cart: “Subprime Chernobyl,” “Systemic Risk Fall-Out,” “We Don’t Know What the Value of This Debt Is” http://cryptogon.com/?p=925

    The United States faces a severe credit crunch as mounting losses on risky forms of debt catch up with the banks and force them to curb lending and call in existing loans, according to a report by Lombard Street Research.

    The group said the fast-moving crisis at two Bear Stearns hedge funds had exposed the underlying rot in the US sub-prime mortgage market, and the vast nexus of collateralised debt obligations known as CDOs.

    “Excess liquidity in the global system will be slashed,” it said. “Banks’ capital is about to be decimated, which will require calling in a swathe of loans. This is going to aggravate the US hard landing.”

    Welcome to Richistan, USA http://observer.guardian.co.uk/world/story/0,,2131...

    In 1985 there were just 13 US billionaires. Now there are more than 1,000. In 2005 the US saw 227,000 new millionaires being created. One survey showed that the wealth of all US millionaires was $30 trillion, more than the GDPs of China, Japan, Brazil, Russia and the EU combined.

    Spending more than we make http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/...

    First off, the Center for American Progress, a liberal-minded think tank, has crunched data from the Federal Reserve and found that Americans for the first time owe more money than they make.

    Council on Foreign Relations on U.S. Dollar: “An Absurdity… Supported Only by Faith” http://cryptogon.com/?p=706

    Stocks Fall With Lender's Earnings Countrywide's Dip Ignites Concerns About Economy http://www.washingtonpost.com/wp-dyn/content/artic...

    Posted 17 years ago #
  2. truthmod
    Administrator

    Cryptogon is a good place to keep abreast of relevant stories on the world financial crisis currently facing us.

    Massive Intervention by European Central Bank Today http://cryptogon.com/?p=1145

    The European Central Bank scrambled to head off a potential financial crisis on Thursday by making an emergency injection of €94.8bn ($131bn) worth of funds into the region’s money markets, after signs that liquidity was drying up.

    The level of funds markedly exceeded the ECB’s only previous major intervention on the day after 9/11 when it lent €69bn followed by €40bn over subsequent days. Even more striking was its one-day pledge to meet 100 per cent of all funding requests from financial institutions.

    Posted 17 years ago #
  3. truthmod
    Administrator

    Central Banks Add Cash to Avert Crisis of Confidence

    http://www.bloomberg.com/apps/news?pid=20601087...

    Central banks in the U.S., Europe, Japan, Australia and Canada added about $136 billion to the banking system in an attempt to avert a crisis of confidence in global credit markets.

    The Federal Reserve, in a second day of action in concert with the European Central Bank, provided $38 billion of reserves and pledged more as necessary,'' in a statement unprecedented since after the Sept. 11, 2001, attacks.

    Money market rates rose worldwide the past two days on evidence the subprime crisis is spreading after global investors piled into U.S. securities backed by mortgages. By the end of the day, the central bank actions helped spark a turnaround in American stocks and drive the U.S. overnight bank lending rate below the Fed's target.

    Posted 17 years ago #
  4. truthmod
    Administrator

    Paul Krugman in NYT

    Friday 10 August 2007  
    

    http://www.truthout.org/docs_2006/081107G.shtml

    What's been happening in financial markets over the past few days is something that truly scares monetary economists: liquidity has dried up. That is, markets in stuff that is normally traded all the time - in particular, financial instruments backed by home mortgages - have shut down because there are no buyers.

    This could turn out to be nothing more than a brief scare. At worst, however, it could cause a chain reaction of debt defaults.

    The origins of the current crunch lie in the financial follies of the last few years, which in retrospect were as irrational as the dot-com mania. The housing bubble was only part of it; across the board, people began acting as if risk had disappeared.

    Everyone knows now about the explosion in subprime loans, which allowed people without the usual financial qualifications to buy houses, and the eagerness with which investors bought securities backed by these loans. But investors also snapped up high-yield corporate debt, a k a junk bonds, driving the spread between junk bond yields and U.S. Treasuries down to record lows.

    Posted 17 years ago #

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