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 […]

Sarkozy calls for UN-led ‘new world order’

Sarkozy, John Key’s ideological brother has called for a new world order. Pappy Bush, and the Neo Con Cabal in Washington are calling for the same. If New Zeeland votes John Key and National in will he do the same?   New York – The United Nations should avail itself as an instrument for a “new world […]

Key’s compassionate conservatism, NZ’s George Bush clone

The Listener quotes Key promoting ‘compassionate conservatism’. It fails to point out that this term was borrowed form George Bush, who in many ways Key is a down-under clone- from his faux environmentalism to his dodging questions of foreign policy. Read more

Black day for shares as €4.5bn lost

By Brian O’Mahony, Chief Business Correspondent ON a black day for Irish shares a total of €4.5 billion was wiped off the value of the Irish Stock Exchange yesterday. Market sentiment was certainly not helped by fears that investors in one of Britain’s biggest mortgage lenders, Northern Rock, might lose their life’s savings as the […]

Investor panic takes toll on Speirs Group

Palmerston North-based loss-making finance company Speirs Group says its investor roll has plummeted 35% in the past three months, its secured stock funding has reduced and it is grappling with the collapse of its rental car client. Speirs Group, made up of Speirs Finance, Speirs Nutritionals and Spiers Foods, posted a loss of $1.9 million […]

Prepare for prolonged turmoil, says US Treasury Secretary

From The Times September 18, 2007 Suzy Jagger and Gabriel Rozenberg Investors should brace themselves for a prolonged period of market turmoil, Henry Paulson, the US Treasury Secretary, said yesterday as he held emergency meetings with the Chancellor and the French Finance Minister. Mr Paulson flew to London to discuss the financial crisis with Alistair […]

Greenspan on 60 Minutes: It was all Bush’s fault

By Mike Whitney 09/17/07 “ICH” — – Alan Greenspan’s appearance on 60 Minutes was preceded with all the pomp and ceremony of a royal wedding. The public relations blitz dragged out for a whole week. What profound truisms would the elusive former-fed master divulge to the News Magazine’s withered-coquette, Leslie Stahl? Would he produce his […]

Cullen planned $1 billion in tax cuts

The Government planned to deliver $1 billion in personal tax cuts at the last budget, but shelved the plan due to fears it would fuel inflation, official papers show. The papers, issued under the Official Information Act, show the Government last year considered a package of personal tax cuts that would have equalled the $1 […]

Fed to meet for US rate decision

The Federal Reserve is preparing to meet to decide whether US interest rates should be reduced from 5.25%. Most analysts believe the Fed will cut rates to try and prevent a housing market downturn and the credit crunch from severely denting the economy. By making money cheaper to borrow, people would spend and invest more, […]

Families feel pinch as basic costs rise

By PAUL EASTON – The Dominion Post | Tuesday, 18 September 2007AdvertisementHouseholds are being squeezed by price increases on basic foods and petrol, even before higher power prices and a sliding Kiwi dollar begin to take effect. Budgeting agencies fear the increase in staple food prices, including butter’s 23 per cent increase yesterday and milk’s […]

Credit crisis: Meltdown!

In the past 100 years, the rollercoaster ride that is the world of high finance has seen some spectacular lows. Sean O’Grady looks back at four episodes that not only came to define their times but also served as lessons for the future Published: 15 September 2007 1907: The Bankers’ Panic Sometimes, all that is necessary […]

US Economy Headed for Recession as Housing Bubble Bursts

Posted by Dr. Kurt Richebacher on Sep 14th, 2007 “America’s income-short, consumer-led recovery is the aberration – not the norm – in this Brave New World. It is all about ever-declining saving rates, ever-widening current account deficits, mounting debt burdens and increasingly wealth-dependent consumers. It personifies what I believe is one of the most precarious […]

More Mortgage Lenders to Close as Impact of Real Estate Slump Hits

Posted by Bill Bonner on Sep 13th, 2007 The Dow bounced right back – up 180 points Tuesday. Gold soared over US$721. What do you think, dear reader? Both went up…but which is the surer bet? We have our opinion. What bothers us is that it is too obvious. Central banks and financial intermediaries have […]

Graft inquiry condemns World Bank

The World Bank has not taken corruption seriously enough and has resisted the efforts of anti-graft investigators, an official inquiry has found. Paul Volcker, former head of the US Federal Reserve Bank, said his inquiry into the bank had revealed a “siege mentality” at the troubled institution. Read more

Leading article: A crisis that spread from Wall Street to the high street

Published: 13 September 2007   Have we reached the moment when the contagion in the rarefied world of the credit markets finally begins to infect the real economy? This week two well-known fashion retailers, French Connection and Next, warned that trading conditions are likely to become a lot more difficult in the coming months. And yesterday, […]

Fed can’t stop recession

Even if the central bank starts to cut rates aggressively, many of the risks for the U.S. economy are beyond its reach. By Chris Isidore, CNNMoney.com senior writer September 13 2007: 1:35 PM EDT NEW YORK (CNNMoney.com) — Problems in housing, the financial markets and the first job decline in four years have made a […]

US, NZ ‘on a date’ for free trade pact

By Audrey Young  Richard Armitage Former US Deputy Secretary of State Richard Armitage likens US relations with New Zealand at present to “dating”. “It’s just like dating. I think we are on a date now,” he said at the second US-NZ Partnership Forum in Auckland, which finished yesterday. “We’re going to see if this works.” […]

GAO report: Medicare not doing enough insurer audits

Private insurance companies participating in Medicare have been allowed to keep tens of millions of dollars that should have gone to consumers, and the Bush administration did not properly audit the companies or try to recover money paid in error, congressional investigators say in a new report. The investigators, from the Government Accountability Office, said […]

The Supply-Side Fraud: Republican Economics Don’t Work

By Hale Stewart, HuffingtonPost.com. Posted September 10, 2007.Supply-side economics is a great marketing concept, but in reality is a poor national policy. Tools Republicans are enamored by “supply-side” economics. Frankly, I have to admit it’s a very easy sell. Think about it. “Cutting tax rates stimulates the economy to such a high level that tax […]

Warning issued on Geneva Finance

By DAVID HARGREAVES – Fairfax Media | Tuesday, 11 September 2007Auckland-based consumer finance company Geneva Finance faces a possible future downgrade of its credit rating because of “increasing pressure” on its liquidity and funding, international credit ratings agency Standard & Poor’s said today. “We believe that there is a possibility that current financial market disruptions […]

Central bankers warn housing crisis could hit whole US economy

BASEL, Switzerland (AFP) – The crisis in the US housing market risks spreading to the whole of the nation’s economy, European Central Bank chief Jean-Claude Trichet said Monday on behalf of world central bankers.Trichet was speaking in his capacity as head of the G10 group of central bankers from industrialised and emerging economies, who met […]

American Economy: R.I.P.

Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration. He was Associate Editor of the Wall Street Journal editorial page and Contributing Editor of National Review. He is coauthor of The Tyranny of Good Intentions. A lifelong Republican.  By Paul Craig Roberts 09/10/07 “ICH’ — — The US economy continues its […]

Worst crisis for 20 years, say banks

LEADING bankers are warning of the worst crisis in the money markets for 20 years, which will come to a head this week when $113 billion (£57 billion) of commercial paper – market IOUs – comes up for refinancing. This huge refinancing, mainly through London, exceeds the $100 billion that became due in mid-August, and […]

Is China Dumping the U.S. Dollar?

September 10, 2007 | From theTrumpet.com Questions loom whether China is behind recent dollar sales—if it is, America’s way of life is about to change. The only question is how badly and how fast. By Robert MorleyThe U.S. dollar is standing at the edge of a cliff, and most people don’t even know it. Data […]

Are The Banks In Trouble?

By Mike Whitney      “The new capitalist gods must love the poor – they are making so many more of them.” Bill Bonner, “The Daily Reckoning”   “The hope of every central bank is that the real problem can be kept from public view. The truth is that the public—even professionals on Wall Street—have no […]

Communities Take Power

by Doug Pibel The Citizens of Barnstead, New Hampshire, Used Local Law to Keep Corporate Giants Out of Their Water Gail Darrell, center, and other Barnstead, New Hampshire, residents pressed for a law to counter the “tyranny and usurpation” of the people’s right to govern themselves, especially with regard to water. Gordon Preston, left, and […]

Showdown time as Clark heads to Apec

Showdown time as Clark heads to Apec By TRACY WATKINS in Sydney – The Dominion Post | Friday, 7 September 2007Prime Minister Helen Clark arrives in Sydney today to unprecedented security and a showdown over nuclear power. As police prepare for a big protest march tomorrow, expected to attract 20,000 people, Sydney-siders are reporting security […]

Reserve Bank of Australia Plans Loans for Distressed Lenders

Posted by Dan Denning on Sep 6th, 2007 Who is knocking on the door of the Reserve Bank of Australia, looking for a handout? The Bank issued a press release this morning, telling anyone who would listen that, “it has decided to further widen the range of securities eligible for its repo operations.” As of […]