PLAYING THE BANKING GAME: HOW CASH-STARVED STATES CAN CREATE THEIR OWN CREDIT

“North Dakota is a sparsely populated state of less than 700,000, known for cold weather, isolated farmers and a hit movie – Fargo. Yet, for some reason it defies the real estate cliché of location, location, location. Since 2000, the state’s GNP has grown 56%, personal income has grown 43%, and wages have grown 34%. […]

Whether We End Up Paying For It Through Taxes Or Hyperinflation, It Will Still Come Out Of Our Pockets.

And yes, this means in New Zealand as well. According to Reuters: The U.S. government saved AIG from bankruptcy in September with a rescue plan that has ballooned to about $152 billion. The article makes it clear that the bailout of AIG was largely due to AIG’s credit default swap exposure: [The government has agreed […]

Citi shares in record slump, CDS spreads widen

Nov. 19, 2008  SAN FRANCISCO (MarketWatch) — Citigroup Inc. shares slumped a record 23% Wednesday and credit-default swap spreads on its debt widened after the bank took on more than $17 billion in assets from structured investment vehicles and shut another hedge fund. Citi shares slumped 23% to close at $6.40. The previous biggest one-day […]

Why Big Banks May Be Trying to Buy up Your Public Water System

Yesterday the news broke that ACT’s Rodney Hide had acquired the position of Minister of Local Government. It turns out that one of ACT’s policies would the privatisation of our water. I have stated here that John Key would sell of this country, its asset’s and its resources to his banking mates. Well, it seems […]

Why The Fannie-Freddie Bailout Will Fail

With yesterday’s announcement of the most massive federal bailout of all time, it’s now official: Fannie Mae and Freddie Mac, the two largest mortgage lenders on Earth, are bankrupt. Some Washington bigwigs and bureaucrats will inevitably try to spin it. They’ll avoid the “b” word with vengeance. They’ll push the “c” word (conservatorship) with passion. […]

U.S. Must Buy Assets to Prevent `Tsunami,’ Gross Says

Sept. 4 (Bloomberg) — The U.S. government needs to start using more of its money to support markets to stem a burgeoning “financial tsunami,” according to Bill Gross, manager of the world’s biggest bond fund. Banks, securities firms and hedge funds are dumping assets, driving down prices of bonds, real estate, stocks and commodities, Gross, […]

Sharp US money supply contraction points to Wall Street crunch ahead

The US money supply has experienced the sharpest contraction in modern history, heightening the risk of a Wall Street crunch and a severe economic slowdown in coming months. Data compiled by Lombard Street Research shows that the M3 ”broad money” aggregates fell by almost $50bn (£26.8bn) in July, the biggest one-month fall since modern records […]

Strategic Finance freezes funds

Another one bites the dust. Strategic Finance has frozen up to $330 million in investor funds, making it the fourth biggest finance company to hit trouble or collapse in the past two years. Strategic management – rugby union chairman Jock Hobbs is a director – are negotiating with the company’s struggling Australian owner, Allco HIT, to […]

Extraordinary Times, Intentional Collapse, and Takedown of the U.S.A.

Much has been written about whether a worldwide plan exists to control events and steer them in the direction profitable to an elite of the rich and powerful. Is this a “conspiracy theory”? While it is difficult to be specific about who exactly may be behind such a conspiracy, if it exists, it is at […]

‘Perhaps 60% of today’s oil price is pure speculation’

The price of crude oil today is not made according to any traditional relation of supply to demand. It’s controlled by an elaborate financial market system as well as by the four major Anglo-American oil companies. As much as 60% of today’s crude oil price is pure speculation driven by large trader banks and hedge […]

Housing affordability getting worse

Housing affordability during March was the worst it has been in at least six years as strong house prices and rising interest rates combined to squeeze mortgage holders. The latest Fairfax Media Home Loan affordability report shows the proportion of median take home pay required to service the mortgage on a median house rose to […]