The 2009 budget deficit could be close to $2 trillion, or 12.5 percent of gross domestic product, more than twice the record of 6 percent set in 1983, according to David Greenlaw, Morgan Stanley's chief economist.
The Dow is off 40% from its high, reached October 11th, 2007. The S&P is off 43% from its high. The Russell 2000 index of small stocks, which had outperformed the broader averages for so long is off 42% from its high and 34% in the last two weeks!
Treasury borrowing cost ramps can produce a 1930s-style dislocation in credit, and if it happens then you will see mass bankruptcies not only in corporate America but among individuals as well as borrowing costs ramp to the point of shutting down the
In Nov of 2002, Ben Bernanke remarked regarding the Great Depression, saying, "you're right, we did it. We're very sorry. But thanks to you, we won't do it again." (So much for that.)
Question: Will the Reduction in Central Bank lending rates, around the world, result in a net gain for the Dow Industrial Average Thursday Oct. 9th 2008?
The International Monetary Fund top economist says the timing is right for G7 to act on credit crisis. (BEND OVER,... HERE IT COMES!)
Today we saw first signs that the market can’t even absorb just the Treasury supply. We will be facing an unimaginable economic environment, one in which the world rightly questions the ability of the US Government to service its obligations.
The action failed to calm gyrating markets, however, amid the growing realization that a serious and prolonged recession may be difficult to avoid.
"Before we seek to dramatically expand the Fed's responsibilities, I believe it is important to recognize there are limits to what central banking can do," Plosser said to the Council on Foreign Relations. Plosser argued willy-nilly
"...wouldn´t it make more sense to take the credit issuing system out of the hands of private interests like the Federal Reserve and integrate it back into the Treasury Department so at the very least the people don´t have to pay interest when t
Join the movement to End the Fed by taking action on November 22, 2008. Citizens will protest at 34 separate Federal Reserve sites around the U.S. The current financial crisis underscores the necessity to quickly put an end to the Federal Reserve SysEntered By: Mike Dugger
("And the last coffin nail is........")
Federal Reserve Chairman Ben S. Bernanke may find the next fronts of the financial crisis to be just as chilling as last month’s downfall of Wall Street titans: its spread to corporate America and state and local governments.
A year into the global financial crisis, several key central banks remain extraordinarily exposed to their countries' shaky private financial sectors.
WASHINGTON — The Federal Reserve will provide as much as $900 billion in cash loans to squeezed banks in an urgent effort Monday to break through a dangerous credit clog that threatens the economy and has unhinged financial markets around the globe.
Last month, extraordinary redemptions threatened the solvency of Money Market Funds. This month, credit lines are drying up and the Fed, in collusion with the Treasury, has put us on the hook for keeping the funds afloat.
A video in black and white, song by Jonny Cash
The Federal Reserve will double its auctions of cash to banks to as much as $900 billion and is considering further steps to unfreeze short-term lending markets as the credit crunch deepens.
More than $3 trillion sitting in cash, in hedge funds, and none of these guys agree with the mouth-breathers in the media - and in the banks - who claim that this is all a "mark to market" problem? None of them are out there buying this cr
It is now clear that the US financial system - and now even the system of financing of the corporate sector - is now in cardiac arrest and at a risk of a systemic financial meltdown. I don’t use these words lightly...
The bailout bill will be a disaster, adding even more Treasury supply to a market which can’t cope with it. This is something that policy makers either fail to understand, or are ignoring.
Here is who voted for or against the amended bailout bill in the house today. Shadegg flipped as expected Flake voted against.
So there it is, banks no longer have to keep even a small amount of peoples bank accounts available as cash. They don’t have to fail, they can just say they are out of cash today.
This bill is about engineering survivor bias to friends of the Bush administration so that they profit disproportionately from the collapse of these markets using the funds provided by the taxpayer via unconditional authority of the Secretary of the
You need to start recognizing the invading troops. They came ashore in 1913 dressed in a garb that took us all by surprise. IF it had not have been for Andrew Jackson, the man that paid off the debt in 1835 and warned us of their intents then wRead Letter
Brad Sherman in the House of Representatives states that members of congress were threatened that “There would be martial law in America if we voted no.”(on the bailout bill)
I will elaborate later today on the rising risk of the "mother of all bank runs", i.e. the risk of a run on the uninsured deposits in the US banking system. Nouriel Roubini
The Senate financial market rescue bill would temporarily allow the Federal Deposit Insurance Corp. to borrow unlimited amounts of money from the Treasury Department in connection with the larger government deposit coverage...
Larry you have to read the bill. It's very clear. The Bank of Shanghai can transfer all of its toxic assets to the Bank of Shanghai of Los Angeles which can then sell them the next day to the Treasury.
""Hundreds of billions of dollars are going to bail out FOREIGN INVESTORS. They know it, they demanded it, and the bill has been carefully written to make sure that can happen." - Rep. Brad Sherman , D-California"