The Federal Reserve gets the key to the safe.

Thomas Jefferson, declared, “If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.” […]

Dollar Declines on Speculation Fed Rescue Package Won’t Succeed

March 12 (Bloomberg) — The dollar fell against the euro and the yen on speculation the Federal Reserve’s plan to provide funds to banks won’t be enough to break the gridlock in money- market lending and stem credit losses. “Read the need for such new measures as being a symptom of what ails the world […]

The Federal Reserve’s rescue has failed

The verdict is in. The Fed’s emergency rate cuts in January have failed to halt the downward spiral towards a full-blown debt deflation. Much more drastic action will be needed.   The Federal Reserve building in Washington Read more from Ambrose Evans-Pritchard ‘Ninja’ loans explode on sub-prime frontline The latest news and views on the […]

U.S. banking sector headed for meltdown, official says

Banks face massive loan losses because of defaults on debts and housing-price slide Duncan Mavin Toronto — The U.S. banking sector is headed for a credit downturn that will be “the worst in generations,” featuring widespread defaults on a range of debts and a national housing price slide not seen since the Great Depression, one […]

The Next Slum?

Strange days are upon the residents of many a suburban cul-de-sac. Once-tidy yards have become overgrown, as the houses they front have gone vacant. Signs of physical and social disorder are spreading. At Windy Ridge, a recently built starter-home development seven miles northwest of Charlotte, North Carolina, 81 of the community’s 132 small, vinyl-sided houses […]

The fall of a financial model

Recent changes in the world economy and financial markets mark the end of the present standard model of financial capitalism, built up over the last decade or so. In this model, financial stability is mainly based on the self-regulation of the financial sector, which alone assesses the risks produced by its financial innovations. Moreover, the […]

Reserve Bank of Australia Reports Inflation Is Out of Control

“This is shocking,” Matthew Sharratt tells Bloomberg. He’s an economist with Bank of America in London. “It feeds concerns about inflation, and will make the Bank of England cautious about lowering interest rates too rapidly.” Yes, the forces of inflation are on the march all over the world. In London, producer prices for chemicals, textiles, […]

U.S. economy’s descent steepens

LONDON: Job losses and a contraction in the business sector where more than 80 percent of Americans work show that the angle of descent for the U.S. economy is steepening. Unsurprisingly, while problems are spreading to the formerly indefatigable American consumer, the old issues – falling home prices and crippled credit markets – show no […]

Wal-Mart’s distress signal

NEW YORK (CNNMoney.com) — U.S. retailers reported their slowest monthly sales growth in five years, which would further cement fears that American consumers are buckling under the weight of a slowing economy. Leading the way was No. 1 retailer Wal-Mart Stores Inc., (WMT, Fortune 500) which on Thursday reported a big miss in its January […]

US recession could be worst in 20 years

WASHINGTON – The chances of the United States avoiding a recession appear to be growing dimmer by the day, and any contraction in the economy will likely last longer and be more severe than other downturns in the past 20 years. Recent reports have shown the US housing market slump and rising defaults in the […]

U.S. Housing Stocks Down $2 Trillion

A trillion here…a trillion there…pretty soon you’re talking real money. U.S. stocks are down about 10% so far this year…that’s about $1.5 trillion lost. U.S. housing stock is said to be down about $2 trillion. And losses from subprime, credit cards, home equity lines, rogue traders…and hanky panky…probably add up to another trillion or so. […]

Update: Crash! Biggest fall in shares since September 11

Recession fears wipe £84bn off the value of Britain’s biggest companies as stock markets tumble across the globe By Nick Clark Published: 22 January 2008   It was the day that the fear factor took over. From Asia to South America, share prices tumbled yesterday as the world’s investors gambled that a US recession was now […]

ECB warns crashing dollar may stop Fed cuts

On a day when Citigroup announces an $18 billion write-down on subprime, news of Alan Greenspan’s latest consulting gig brings to the forefront a painful reminder that not everyone was hurt by the mortgage-market meltdown. The former Federal Reserve chairman—the very man whom many blame for ushering in the housing collapse with his bargain-basement interest-rate […]

Housing: A Fresh Jolt of Bad News

Getty Images In case you were still harboring a tiny bit of optimism about the U.S. housing sector, just take a look at a couple of headlines from Jan. 8. KB Home (KBH) President and Chief Executive Officer Jeffrey Mezger said in a conference call with investors that he sees “no sign” that the sinking […]

The Post-Bush Regime: A Prognosis

In order to understand why John Key should not even be allowed to be in politics  it is necessary to have some understanding who it is that really makes the decisions behind the scenes, and what their interests are. It turns out that the world is essentially run by a very small clique of extremely […]

U.S. Stocks Decline, Poised for Worst Fourth Quarter Since 2000

Dec. 29 (Bloomberg) — U.S. stocks fell and were poised for their first fourth-quarter decline since 2000 after government reports on durable goods and unemployment reinforced speculation the housing-market collapse will push the economy into recession. Citigroup Inc., JPMorgan Chase & Co. and Merrill Lynch & Co. dropped after Goldman Sachs Group Inc. analyst William […]

Another Kiwi finance firm collapses

Numeria Finance has collapsed owing investors about $6.4 million. Numeria is a small finance firm with 480 debenture holders and assets valued at about $7 million. It is an associated company of Capital + Merchant Finance, which was put into receivership about two weeks ago. Perpetual Trust, which is the trustee of Numeria’s secured debenture […]

Adding to the List of Worries, Signs That Inflation Is Bubbling Up

By MICHAEL M. GRYNBAUM Published: December 15, 2007 Economists and central bankers have worried for months that soaring food and energy costs could lead to higher inflation, but investors had shrugged off those concerns, preferring to focus on the slowdown in growth.”In the Fed’s mind, inflation never really left the picture,” the chief economist at […]

Russia may dump weakening US dollar in its energy deals

It seems that the rejection of the US dollar has become a fashion trend in modern-day business relations. Several major oil and gas exporters have recently announced their plans to use a different currency in their deals with other countries. The heads of Iran, Venezuela and Ecuador expressed such an opinion at the OPEC summit […]

MORTGAGE MELTDOWN

New proposals to ease our great mortgage meltdown keep rolling in. First the Treasury Department urged the creation of a new fund that would buy risky mortgage bonds as a tactic to hide what those bonds were really worth. (Not much.) Then the idea was to use Fannie Mae and Freddie Mac to buy the […]

ARM Teaser Freezer Plan Designed To Help Banks, Not the Market

So it was that Henry Paulson came up with an idea… the ‘teaser freezer‘ plan. The ARM teaser freezer is being sold to the public as a way to protect homeowners. But it has another purpose, says a reporter from the San Francisco Gate, to help save the banks from their own bad judgment. “The […]

The planned collapse of America

There is no shortage of speculation about “why” our leaders are still adamantly planning for the destruction of Iran, in the face of overwhelming popular opposition, even though everyone except the neocons and their allies believes that America would not survive our own actions. An irrational attack is planned and apparently the decision has been […]

Is Britain’s economy heading for the perfect storm?

Sean O’Grady, Economics Editor Published: 05 December 2007   The storm clouds are gathering over the jobs market; the climate on the high street is growing distinctly chilly; a typhoon of bad debt is buffeting the banks. Could a “perfect storm” be about to hit the British economy? The signs couldn’t be much bleaker. The switchback […]