G. Edward Griffin on the Federal Reserve of New York

Just in case you missed this excellent Expose from G. Edward Griffin about the real nature of the Federal Reserve of New York and the Federal reserve system worldwide. John Key was one of only four advisors to the NY Federal Reserve from 1999 until March 2001. G. Edward Griffin is the writer of a […]

Troubles mount for Strategic Finance

Strategic Finance, owned by stricken Australian company Allco Finance Group, has virtually stopped long-term lending. It has switched its lending to short-term to match its borrowings which, like other finance companies, have contracted drastically as debenture holders baulk at reinvesting. The company yesterday cut its full year net profit forecast to $28.2 million from $31.2m, […]

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 […]

Credit crisis turmoil claims new victims

By Stephen Foley in New York and Sean Farrell Thursday, 21 February 2008 Losses resulting from the credit market turmoil – until now largely limited to the world’s biggest investment banks – are starting to be felt much more widely, by wealthy individuals, local government and even sports teams, presaging a new and potentially litigious […]

America’s economy risks mother of all meltdowns

“I would tell audiences that we were facing not a bubble but a froth – lots of small, local bubbles that never grew to a scale that could threaten the health of the overall economy.” Alan Greenspan, The Age of Turbulence. That used to be Mr Greenspan’s view of the US housing bubble. He was […]

Wall St. Banks Confront a String of Write-Downs

Wall Street banks are bracing for another wave of multibillion-dollar losses as the crisis that began with subprime mortgages spreads through the credit markets. In recent weeks one part of the debt market after another has buckled. High-risk loans used to finance corporate buyouts have plummeted in value. Securities backed by commercial real estate mortgages […]

Bankers, like gangs, just get carried away

“So long as the music is playing, you’ve got to keep dancing. We’re still dancing.” Chuck Prince, former chairman and chief executive of Citigroup, was interviewed by this paper only a month before the music stopped. A few weeks later he was out of a job. With these comments, he got to the heart of […]

U.S. Subprime Meltdown Costs the World $8.6 Trillion

There’s something happening here. What it is ain’t exactly clear. There’s a man at the Fed who’s confused. And now investors, they feel quite abused. You get the idea. The Dow fell 173 points in New York when Ben Bernanke and Hank Paulson went to Capitol Hill to repeat how bad things are in the […]

U.S. mortgage crisis spreads beyond subprime loans

NEW YORK: The U.S. credit crisis is no longer just a subprime mortgage problem. As the world’s largest economy grapples with the worst housing slump in two decades, people with good credit histories are falling behind on house payments, auto loans and credit cards at an accelerating pace. The problem, spurred by a sharp decline […]

House prices, sales numbers dive

As America is collapsing under the mortgage meltdown, the sub prime crisis and the costs of two illegal wars, New Zealand follows suit. 15 Finance institutions disappeared overnight due to the sub prime crisis which is not just an American phenomena but a world wide hidden disaster finally crawling out of the wood works, houseprices […]

Credit Crisis Only Begins With Mortgages

Federal Reserve Chairman Ben Bernanke (WDCPix) By Charles R. Morris 02/12/2008 349 Views <!– No more comments –>| 2 Comments Illustration by: Matt Mahurin One can pity Federal Reserve Chairman Ben S. Bernanke. No other federal reserve chairman ever cut interest rates by a full 1.25% within just eight days, as Bernanke has done. But […]

Who is to Blame for the Mortgage Carnage and Coming Financial Disaster? Unregulated Free Market Fundamentalism Zealotry

The sub-prime and overall mortgage carnage is now likely to lead to a financial crisis whose cleanup and bailout costs will make the S&L bailout bill look like spare change. We are only at the beginning of this fallout but, already, several proposals and bills in Congress have been submitted to help millions of sub-prime homeowners […]

The Mother of All Rip-offs. “Get Ready For A Real Hosing”

By Mike Whitney  11/02/08 “ICH” — — Low interest credit and “financial innovation” are a deadly-combo. They’ve knocked the banking system for a loop, clogged the credit markets with billions of dollars of subprime sludge, and left the real estate market sprawling on the canvas. Still—even though $2 trillion of capitalization has been wiped-out from falling […]

Who is John Key?

Special report on National leader John Key By GILLIAN TETT and RUTH LAUGESEN – Sunday Star Times | Sunday, 03 February 2008 FIRST LIFE: As a money trader in London it’s speculated John Key was earning $5 million a year – that’s $96,000 a week. AdvertisementHe used to work hand in glove with the foreign […]

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 […]

America’s Teetering Banking System: “Where did all our deposits go?”

By Mike Whitney 31/01/08 “ICH” — – Somebody goofed. When Fed chairman Ben Bernanke cut interest rates to 3% yesterday, the price of a new mortgage went up. How does that help the flagging housing industry? About an hour after Bernanke made the announcement that the Fed Funds rate would be cut by 50 basis points […]

Stagflation is Here

War—after all, what is it that the people get? Why—widows, taxes, wooden legs and debt. Samuel B. Pettengill “Armies, and debts, and taxes are the known instruments for bringing the many under the domination of the few. James Madison, 4th U.S. President (April 20, 1795) “Let me issue and control a nation’s currency and I […]

America’s middle classes are no longer coping

 By Robert Reich 30/01/08 “FT” — – 28/01/08 — It is an election year and the US economy is in peril of falling into recession or worse. Not surprisingly, Washington is abuzz with plans to prevent it. President George W. Bush has proposed a $150bn stimulus package and all the main presidential candidates are offering […]

Paulson says U.S. housing correction “necessary”

By Glenn Somerville WASHINGTON (Reuters) – A slump in U.S. homebuilding that slowed growth at the end of 2007 will help wring out excesses and the Bush administration is not trying to ward it off, U.S. Treasury Secretary Henry Paulson said on Wednesday. “After years of unsustainable home price appreciation, this is a necessary correction,” […]

FBI quizzes companies over sub-prime collapse

The FBI is investigating 14 corporations for possible accounting fraud and other crimes related to the sub-prime lending crisis. Neil Power, chief of the bureau’s economic crimes unit, would not identify the companies, though he said the cases involved “valuation-type stuff”. The probes included reviews of sub-prime lenders, housing developers and Wall St banks that […]

Fed cuts rate for 2nd time in 8 days

WASHINGTON (AP) — The U.S. Federal Reserve on Wednesday cut a key interest rate for the second time in just over a week, reducing the federal funds rate by a half point. It signaled that further rate cuts were possible. Ben Bernanke, chair of the Federal Reserve, which Wednesday cut its key rate for the […]

Message from Davos: The recession is coming

A full-blown, prolonged recession in America is now inescapable, with the rest of the world set to be dragged into a severe global slowdown despite yesterday’s emergency US interest rate cut by the Federal Reserve, leading economists said in Davos this morning. A darkening outlook for the global economy looked set to dominate the week-long […]

MORTGAGE MELTDOWN

Interest rate ‘freeze’ – the real story is fraud Bankers pay lip service to families while scurrying to avert suits, prison Sean OlenderNew 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 […]

Borrowers stretched to the limit

In 24 years as president and chief executive officer of Sacramento’s Safe Credit Union, Henry Wirz said he’s never seen such “widespread credit problems in the Sacramento region.” It began last September with rising delinquencies on car loans. By December, the late payments spread to real estate loans. Now, increasingly, borrowers have maxed out their […]

The Mortgage Mogul and His Victims

As banks, money markets and stock exchanges convulse over a sinking American economy, we see the folks sprawled at the bottom of the smoking rubble — debt-crushed American consumers. It is they whose reckless or trusting natures enriched so many, at least for a while, and whose troubled loans have sent markets into panic. But […]

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 […]

Mortgage writedown leads to massive Merrill Lynch loss

Did I mention that Merrill Lynch was the bank that John Key worked for, and that one of his positions with this bank was; Head of Bonds and Derivatives Europe. The very products that are now causing the credit crunch. And did I mention that these financial products were developed by the bank John Key worked for […]