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 […]

Interview with an investment banker

Just in case you missed it. Investment bankers bet and speculate. In other words they are making money with money. When the banking world was about to collapse because the bet on packets of junk bonds, and were about to be caught out on it they changed their tack. They now bet and speculate on […]

Stormy times ahead?

Economists are predicting unemployment to double to between 6 and 7 per cent if the international credit crunch turns critical here. ANZ chief economist Cameron Bagrie predicts that, at best, the unemployment level will increase from 3.4 to 5 per cent as tightening credit conditions hamper economic growth. If the credit crunch grips New Zealand, […]

Key admits blunder over Treaty

And the promised retraction of the “drop wages” remark.  National leader John Key has admitted that he blundered yesterday over his party’s Treaty settlements policy. He said on breakfast television that National had not previously had a date by which it wanted settlements completed. In fact, its position at the last election was that grievances […]

Listed finance companies take beating

Fresh signs of stress are emerging in the finance company sector with two listed companies suffering sharp sell-offs yesterday as the credit crunch shuts down options for firms reliant on the domestic debenture market. Shares in Dorchester Pacific, which last week downgraded its profit guidance, fell as much 23 per cent, ending the day 13c […]

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, […]

Nats would not ban airport sale

Auckland airport has blown up into a big political row after National leader John Key suggested he would not stand in the way of a part-sale to foreign buyers. • Blog: Labour cock-a-hoop over airport move Share prices for Auckland airport tumbled yesterday after 11th-hour changes by the Government effectively blocked a 40 per cent shareholding […]

Key accused of being ‘slippery’ over Auckland Airport

Finance Minister Michael Cullen has accused National leader John Key of being “very slippery” on his stance toward the Government’s move to protect Auckland Airport from foreign control. Dr Cullen last night announced new foreign investment rules allowing ministers to block deals that would allow control of strategic assets and land to fall into overseas […]

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 […]

After subprime debacle, U.S. wrestles with question of bank bailouts

John Key was working for banks who were at the forefront of those who developed these fantastic new financial innovations. He worked for the Bankers Trust; one of the first banks that started to experiment with these funky new “securitized investment vehicles”. In fact while working for Merrill Lynch he worked for a while as […]

Thousands of investors hit hard

The investments of many of the 380,000 people who have joined the KiwiSaver scheme have taken a battering with the dramatic slump in sharemarkets. New Zealand and world sharemarkets have taken a dive in the past fortnight after falls in the United States. Fears of a recession there and massive losses in US housing markets […]

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 […]

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 […]

A&L shocks the markets with £185m write down

By Sean Farrell Financial Editor Thursday, 21 February 2008 Alliance & Leicester admitted regret about its investments in risky assets yesterday as it scrapped its profit target and said it would not compete strongly for new mortgage customers this year. The bank’s shares fell nearly 7 per cent to their lowest since 2000 after it […]

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 […]