“Cluster Of Central Banks” Have Secretly Invested $29 Trillion In The Market

That means printed money out of thin air. All $ 29 trillion of them. John Key is visiting his Wall street mates New York. I wonder who he is speaking with! Another conspiracy “theory” becomes conspiracy “fact” as The FT reports “a cluster of central banking investors has become major players on world equity markets.” […]

Hanover Finance freezes $554 million

getNFCookie(newsflashid); What gets me about the collapse of all major Finance institutions of the last year is the ear deafening silence from National. Run by bankers I would have thought they would have something to say about the collapses. Something like,” We need for these institutions to behave responsibly for example.” It is after all […]

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, […]

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.” […]

New Crisis, Old Isms

The Federal Reserve Bank’s decision last week to address the housing crisis by extending $200 billion of taxpayer-financed credit to Wall Street banks was met with a stunned reaction typical of surprising events. But really, the move was the expression of longstanding isms that routinely package corruption as sound public policy. Some background: During the […]

Central banks make $250bn move to ease the credit crisis

Central banks make $250bn move to ease the credit crisisJoint action by US, UK, Europe and Canada; Dow Jones surges on news By Stephen Foley in New York Wednesday, 12 March 2008 Central banks around the world made a second co-ordinated attempt to ease the credit crisis, three months after their first efforts failed to […]

Derivatives the new ‘ticking bomb’

ARROYO GRANDE, Calif. (MarketWatch) — “Charlie and I believe Berkshire should be a fortress of financial strength” wrote Warren Buffett. That was five years before the subprime-credit meltdown. “We try to be alert to any sort of mega-catastrophe risk, and that posture may make us unduly appreciative about the burgeoning quantities of long-term derivatives contracts […]

Sorting Through the Rubble in Post-Bubble America

By MIKE WHITNEY”Market conditions are the worst anyone in this industry can ever remember. I don’t think anyone has a recollection of a total disappearance in liquidity…There are billion of dollars worth of assets out there for which there is just no market.” Alain Grisay, chief executive officer of London-based F&C Asset Management Plc; Bloomberg […]

International experts foresee collapse of U.S. economy

fctAdTag(“superbanner”,MyGenericTagVar,1); Posted By Hielema, Bert Posted 11 days ago And you thought that I had a gloomy outlook on the economy. Now the bad news pops up everywhere. Harry Koza in the Globe and Mail quotes Bernard Connelly, the global strategist at Banque AIG in London, who claims that the likelihood of a Great Depression […]

Auckland house prices ‘fall 4 per cent in Feb’

Auckland house prices fell 4 per cent in February, meeting expectations of further slowing in New Zealand’s largest property market, real estate agents say. With just over 600 house sales, the average price fell to $517,613 from January in what has become a buyers’ market, Barfoot and Thompson managing director Peter Thompson said. “Generally, vendors […]

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, […]

Banks’ bad debts tipped to triple

Australia’s big four banks, which control most New Zealand banks, might need to triple bad debt provisions because of exposure to financially troubled companies, analysts say. Lehman Brothers estimates Australia’s big four have lent $A6.5 billion ($NZ7.57 billion) to companies struggling to repay debt. They include Allco Finance Group, ABC Learning Centres, MFS and Centro […]

Mide joins Blue Chip landslide with $11.6m losses

A company which was part of the franchise business of property investment specialist Blue Chip has gone into liquidation with losses of $11.6 million and no prospect of any money for unsecured creditors. Mide Ltd, part of the New Zealand franchise group of companies involved with Blue Chip, ceased trading on February 22 and went […]

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 […]

MPs accuse regulators of being ‘deficient’

By Sean Farrell, Financial Editor Monday, 3 March 2008 The House of Commons Treasury Select Committee has criticised banks for ignoring warnings about risky lending, and hit out at regulators for not making sure that lenders listened to their concerns. In its second report into the causes and lessons of the market turmoil, the committee […]

Markets Fall on Drumbeat of Grim Reports

VIKAS BAJAJ and MICHAEL M. GRYNBAUM Published: March 1, 2008 An outpouring of negative economic and financial reports soured the mood on Wall Street Friday as banks and other lenders further tightened credit in their struggle to contain damage from losses on mortgages, business loans and related debt.Shares sank, and investors fled to the safety […]

Allco’s Value Getting Close to Zero

Oh oops, another one bites the dust. Terry McCrann of the Herald Sun referred to Allco Finance Group (ASX:AFG) as “Mini-Mac” the other day. What he meant was that the company has similarities to Macquarie Group (ASX:MQG). If we were Macquarie Group, we’d be downright insulted. How are the two similar? Well they’re both leveraged […]

Kiwi dollar falls sharply

The New Zealand dollar fell sharply against major international currencies overnight Friday as sliding United States equities increased investors’ risk aversion. Dollar picked to hit US85c The kiwi’s decline against the major three traded currencies came even as the greenback fell to record lows against the euro and a basket of currencies for a fourth […]

Fed Announces $60B March Auctions

This is not good. Just printing money causes inflation, inflation will make the poor and the middle class even poorer, and they promised they will keep on doing it until there is nothing left. (WASHINGTON) – The Federal Reserve announced Friday that it will auction another $60 billion in March as it continues to combat […]

London hedge fund Peloton liquidates $2bn flagship fund

By Nikhil Kumar and Stephen Foley Friday, 29 February 2008 One of London’s highest-profile hedge fund managers, fêted just last month as the most promising newcomer of recent years, is to wind up one of its funds – blaming the credit crisis for a major squeeze across the hedge-fund industry. Peloton Partners, co-founded by 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 U.S Financial System, the Debt Bubble and the Cancer of Excessive Deregulation

“It’s…poetic justice, in that the people that brewed this toxic Kool-Aid found themselves drinking a lot of it in the end.” Warren Buffett, American investor  “By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.” John Maynard Keynes (1883-1946)  “New money that enters the […]

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 […]