Old Project Avalon Forum (ARCHIVE) - Planetary financial crisis next week around Oct 7?

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- - Planetary financial crisis next week around Oct 7? (http://projectavalon.net/forum/showthread.php?t=3959)

bikeguy

10-08-2008 09:28 PM

Re: Planetary financial crisis next week around Oct 7?

plans have been in place for years to crash the world economy - the PTB will now assure that resources and world population is rebalanced

given the current state of technology the 'carrying capacity' of planet earth is around 2 billion souls - expect to shed about 4.5 billion in the next couple of years

my best advice is to try to look indispensable

-bikeguy

Molly

10-09-2008 01:39 AM

Re: Planetary financial crisis next week around Oct 7?

Housing sub-prime mortgages, 700 billion dollars, george soros, nancy pelosi...all in a 'banned' SNL skit. With Anne Hathaway as guest star.

I didn't see this around, so wanted to make sure it gets seen. It's brave comedy, imo.

http://patdollard.com/2008/10/it-is-...de-from-louie/

Merlyn

10-09-2008 02:04 AM

Re: Planetary financial crisis next week around Oct 7?

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Latest posting by Jim Sinclair and I have bolded some key points like
"Bank holidays are on the way."

Quote:

Posted On: Wednesday, October 08, 2008, 8:56:00 PM EST
Gold and Dollar Market Summary
Author: Jim Sinclair and Dan Norcini

Dear Friends,

The Big Gun was rolled out today. The equity market had steadied from its recent drastic action and Paulson picked up the baton and ran with it. He is considered to be the best public speaker of the Money Men.

The Bloomberg ladies were in total glee as the market was up about 125 points. As Paulson said that not all financial failures would be bailed out (now a major fib) the equity gang lost their instructions. In the blink of an eye what was up 125 points was then down almost 200.

I imagine being a good public speaker does not carry much weight in a situation that can be described as "OUT OF CONTROL."

If the Washington gang really does not want the financial calamity now in progress, statements that suggest another major financial entity could go bankrupt without a bailout should be avoided. If all powerful Money Man persists in bringing up thoughts of Lehman's Chapter 11, the equity market will have no bottom. Letting Lehman go after instituting bailouts of others is the event that has given way to this "Out of Control" condition.

Out of Control means just what it says. If things were under control the equity market would not have given a Brooklyn Cheer to the President of the USA and the Chairman of the Federal Reserve and there would not have been an unprecedented drop of interest rates today.

Bank holidays are on the way.

Every major retirement fund is stone broke.

Most money management entities are full of treasury OTC derivatives, not treasury instruments, and are therefore also broke.

The local banks are in the web of the Money Center banks and are therefore in trouble they do not even know about yet.

The paperwork behind OTC mortgages is a total disaster, adding more mess to an already major financial planetary killer.

I am sorry to say that there is no way to make this process go away. The downward spiral will make its way to the bottom.

Gold will be the tool that finally stops the plague in the form of the Federal Reserve Gold Certificate Ratio, revitalized and modernized, but not until the public is in such a condition that it cries out to God to stop the carnage. That will happen sometime before January 14th 2011.

Protect yourself, this is out of control!

Respectfully yours,
Jim

Link: http://www.jsmineset.com/

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Merlyn

10-09-2008 02:46 PM

Re: Planetary financial crisis next week around Oct 7?

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The article below states "US government may take ownership stakes in banks"

What is the FDIC doing?

This appears to be result of LIBOR rate and also the Banks/Financial institutions do NOT trust one another. So dump the risk on the taxpayer
slave.

Quote:

US government may take ownership stakes in banks
Thursday October 9, 9:27 am ET
By Martin Crutsinger and Jeannine Aversa, AP Economics Writers
White House mulling ownership stakes in banks; global financial markets steady

WASHINGTON (AP) -- News that the Bush administration is considering taking ownership stakes in a number of U.S. banks helped restore a relative calm over global financial markets Thursday.

The aim of such a move would be to thaw the lending freeze that threatens to push the world's economy into recession. It comes after rampant fear about the global economy sent investors scurrying on Tuesday for safety in U.S. government securities despite an orchestrated round of rate cuts by the world's central banks.

Rest of story: http://biz.yahoo.com/ap/081009/financial_meltdown.html

OTHERS DOING THE SAME

Quote:

Belgium, France, Luxembourg guarantee Dexia bank
Thursday October 9, 7:18 am ET
By Aoife White, AP Business Writer
Belgium, France, Luxembourg pledge yearlong guarantee covering new Dexia loans.

BRUSSELS, Belgium (AP) -- The governments of France, Belgium and Luxembourg announced Thursday they will give struggling lender Dexia SA a yearlong guarantee on its new loans and deposits, sending the company's shares soaring.

Link: http://biz.yahoo.com/ap/081009/eu_be...dexia_aid.html

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Merlyn

10-09-2008 06:24 PM

Re: Planetary financial crisis next week around Oct 7?

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More LIBOR News...

Quote:

Libor Holds Central Banks Hostage as Credit Freezes (Update2)
By Gavin Finch and Ben Sills

Oct. 9 (Bloomberg) -- Danilo Coronacion oversees 15 percent of global coconut oil production at CIIF Oil Mills Group in the Philippines. These days, he spends a lot of time worrying about events half a world away in London. The name of his pain? Libor.

CIIF has more than $60 million of debt, or 70 percent of its working capital, linked to London interbank offered rates that have soared since Lehman Brothers Holdings Inc. collapsed on Sept. 15. The cost of borrowing in dollars for three-months in London jumped 23 basis points today to 4.75 percent, the highest level since December.

Rising Libor, set each day in the center of international finance, means higher payments on financial contracts valued at $360 trillion -- or $53,500 for each person worldwide --including mortgages in Britain, student loans in the U.S. and the debt of companies like CIIF in Makati City, the Philippines.

``You can't afford to be caught in the wrong position at any given time,'' said Coronacion, chief executive officer of CIIF, which generally pays 1 to 2 percentage points more than Libor.

Central banks from the U.S. to England and China cut interest rates yesterday in an attempt to restart the flow of credit and prevent a global recession. The moves came after they had funneled trillions of dollars into money markets in a failed bid to end the blockage. South Korea, Taiwan and Hong Kong lowered their benchmark rates today.

`Fear and Panic'

The process of setting Libor is overseen by the British Bankers' Association, putting it outside the domain of central bank policymakers. The overnight dollar rate fell 29 basis points to 5.09 percent. That's still 359 basis points more than the U.S. Federal Reserve's benchmark rate.

Libor, a gauge of bank funding costs, continued to rise even after Spain and the U.K. acted to strengthen their banking systems and the U.S. Congress approved a $700 billion financial bailout. Even the Fed's decision Monday to double emergency cash auctions failed to unlock short-term lending. The European Central Bank today offered banks as much cash as they need for six days at its benchmark rate of 3.75 percent, bringing forward new measures to soothe money markets.

``You get to a situation where fear and panic take hold,'' said Peter Dixon, a London-based economist at Commerzbank AG, Germany's second-biggest bank. ``This is the eye of the storm.''

Mysterious Acronym

Still, the jargony acronym Libor mystifies most people. While U.S. presidential candidates John McCain and Barack Obama have sparred over the economy and the mortgage crisis in America, neither has braved a public discussion of Libor.

Banks aren't lending because they're worried any borrower may become the next victim and they'll be left with losses as the credit freeze deepens.

Rest of Article at Link: http://www.bloomberg.com/apps/news?p...YzY&refer=home

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Merlyn

10-09-2008 08:33 PM

Re: Planetary financial crisis next week around Oct 7?

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The LIBOR continues to be a problem and all this week during a escalating Planetary financial crisis...

Quote:

Libor Dollar Rate Jumps to Highest in Year; Credit Stays Frozen
By Anchalee Worrachate and Gavin Finch

Oct. 9 (Bloomberg) -- The cost of borrowing in dollars for three months in London soared to the highest level this year as coordinated interest-rate reductions worldwide failed to revive lending among banks for any longer than a day.

Attempts by policy makers to restore confidence to money markets are being stymied by almost daily crises among financial institutions. Iceland's government took over the nation's biggest lender today to keep the country's banking system working. American International Group Inc., the insurer taken over by the U.S. government, may need $37.8 billion of extra funds, the Federal Reserve Bank of New York said yesterday.

``To see little or no reaction in the fixings is very disappointing and reinforces the fact that Libor is broken and the transmission mechanism from central banks isn't working,'' said Barry Moran, a currency trader in Dublin at Bank of Ireland, the country's second-biggest bank. ``Things are still very stressed and we don't know what's going to fix it.''

The London interbank offered rate, or Libor, for three-month loans rose to 4.75 percent today, the highest level since Dec. 28. The Libor-OIS spread, a measure of cash scarcity, widened to a record. The overnight rate fell to 5.09 percent, still 359 basis points more than the Fed's 1.5 percent target rate.

The European Central Bank today offered banks as much cash as they need for six days at its benchmark rate of 3.75 percent, bringing forward new measures to soothe money markets. It also loaned banks a record $100 billion in overnight dollar funds, allotting most of the cash at 5 percent, down from 9.5 percent yesterday.

`Holding Cash'

South Korea, Taiwan and Hong Kong cut interest rates today, a day after reductions by central banks including the Federal Reserve and European Central Bank that were designed to stem damage from the global financial crisis. The U.K. government pledged yesterday to spend 50 billion pounds ($87 billion) to stave off a collapse of the British banking system.

``I don't see a wave of liquidity coming into the market,'' said Alessandro Tentori, an interest-rate strategist in London at BNP Paribas SA. ``People are still holding on to their cash because there's still a great deal of uncertainty out there.''

There were signs of a thaw in short-term markets. Overnight borrowing costs for companies dropped to the lowest in almost two weeks after yesterday's rate cuts and the Fed committed to buying commercial paper. Yields on the highest-rated one-day commercial paper placed by dealers declined 1.15 percentage points to 2.35 percent, according to data compiled by Bloomberg. Rates from Sears Holdings Corp. and HSBC Holdings Plc fell, the data show.

Iceland, AIG

Interbank lending rates have climbed as financial institutions stockpile cash to meet funding expectations and remain skeptical that central bank efforts to unblock markets will work. The three-month rate in euros held at a record high of 5.39 percent today.

Iceland's government today seized control of Reykjavik-based Kaupthing Bank hf, completing the takeover of a banking industry that has collapsed under the weight of its foreign debt. Late yesterday, the Fed said New York-based AIG can swap as much as $37.8 billion of its ``investment-grade, fixed-income securities'' for cash to ``replenish liquidity.''

Money-market rates rose today in Hong Kong, Singapore and Japan to the highest levels in at least nine months. Hong Kong's three-month interbank offered rate jumped to 4.4 percent, a one- year high. Singapore's comparable rate for dollar loans increased to 4.51 percent, the highest level since Jan. 8.

`Of Little Help'

The Libor-OIS spread, the difference between the three-month dollar Libor and the overnight indexed swap rate, climbed 23 basis points to an all-time high of 348 basis points. The average was 8 basis points in the 12 months to July 31, 2007, before the credit squeeze began. The difference between what banks and the Treasury pay to borrow money for three months, the so-called TED spread, exceeded 400 basis points for a second day.

``Libor spreads are still wide, which suggest offshore banks are not willing to take more risks lending to other banks,'' said Cezar Bayonito, a liquidity trader at Allied Banking Corp. in the Philippines. ``Interest-rate cuts will be of little help in the near term because the issue is trust, not rates.''

Libor, set by 16 banks in a daily survey by the British Bankers' Association at about noon in London, determines rates on $360 trillion of financial products worldwide, from home loans to derivatives. Member banks provide estimates on how much it would cost to borrow in 10 currencies for periods ranging from a day to a year.

Sears' commercial paper rate declined by 1 percentage point to 3 percent, according to Bloomberg data. The rate for HSBC fell by 25 basis points to 2 percent. Companies sell commercial paper, which matures in nine months or less, to help pay for day-to-day expenses such as payroll and rent.

Yields on three-month Treasury bills were unchanged at 0.62 percent.

Link: http://www.bloomberg.com/apps/news?p...ap8&refer=home

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izz	10-09-2008 08:45 PM

Re: Planetary financial crisis next week around Oct 7?

Quote:

Originally Posted by bikeguy (Post 44450)

my best advice is to try to look indispensable

-bikeguy

:lol3::roll1::roll1:

how do we do that ... :biggrin2::bleh:

Dr. D

10-09-2008 09:07 PM

Re: Planetary financial crisis next week around Oct 7?

There is no stopping the meltdown.It was and is fatally flawed and it was just a matter of time.I know the boys in Washington and New York no this.What do you think the chances of a major false flag to keep people from seeing the inevetable is?

izz	10-09-2008 09:11 PM

Re: Planetary financial crisis next week around Oct 7?

Quote:

Originally Posted by Dr. D (Post 45566)

nil

Brinty

10-09-2008 09:24 PM

Re: Planetary financial crisis next week around Oct 7?

Quote:

Originally Posted by izz (Post 45545)

:lol3::roll1::roll1:

how do we do that ... :biggrin2::bleh:

Walk around with a clip board and a worried look on your face. :sad:

It helps to break into a trot now and then and to keep looking from side to side. :dog:

If nothing nasty eventally happens, you will have at least gotten some exercise, lost weight, and be fitter. :D

Merlyn

10-09-2008 11:22 PM

Re: Planetary financial crisis next week around Oct 7?

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More bad news on the Libor rate with this statement:

"Libor, the bank lending benchmark, for three-month dollar loans rose to 4.75 percent
from 4.52 percent on Wednesday. That signals that banks remain hesitant to make loans
for fear they won't be paid back."

In this article:

Quote:

Dow plunges 679 to fall to lowest level in 5 years
Thursday October 9, 7:03 pm ET
By Tim Paradis, AP Business Writer

Dow plunges 679 points to trade below 9,000 for the first time in 5 years in afternoon sell-off

NEW YORK (AP) -- Stocks plunged Thursday, sending the Dow Jones industrial average down 679 points -- more than 7 percent -- to its lowest level in five years. Stocks took a nosedive after a major credit-rating agency said it might cut its rating on General Motors and Ford, further rattling investors already fretting over the impact of tight credit on the economy.

The Standard & Poor's 500 index also fell more than 7 percent.

The declines came on the one-year anniversary of the closing highs of the Dow and the S&P. The Dow has lost 5,585 points, or 39.4 percent, since closing at 14,164.53 on Oct. 9, 2007. It's the worst run for the Dow since the nearly two-year bear market that ended in December 1974 when the Dow lost 45 percent. The S&P 500, meanwhile, is off 655 points, or 41.9 percent, since recording its high of 1,565.15.

U.S. stock market paper losses totaled $872 billion Thursday and the value of shares over all has tumbled a stunning $8.33 trillion since last year's high. That's based on figures measured by the Dow Jones Wilshire 5000 Composite Index, which tracks 5,000 U.S.-based companies' stocks and represents almost all stocks traded in America.

Thursday's sell-off came as Standard & Poor's Ratings Services put General Motors Corp. and its finance affiliate GMAC LLC under review to see if its rating should be cut. The action means there is a 50 percent chance that S&P will lower GM's and GMAC's ratings in the next three months. GM has been struggling with weak car sales in North America.

S&P also put Ford Motor Co. on credit watch negative. The ratings agency said that GM and Ford have adequate liquidity now, but that could change in 2009.

GM, one of the 30 stocks that make up the Dow industrials, fell $2.15, or 31 percent, to $4.76, while Ford fell 58 cents, or 22 percent, to $2.08.

"The story is getting to be like that movie 'Groundhog Day,'" said Arthur Hogan, chief market analyst at Jefferies & Co. He pointed to the still-frozen credit markets, and Libor, the bank-to-bank lending rate that remains stubbornly high despite interest rate cuts this week by the Federal Reserve and other major central banks.

"Until that starts coming down, you'll be hard-pressed to find anyone getting excited about stocks," Hogan said. "Everything we're seeing is historic. The problem is historic, the solutions are historic, and unfortunately, the sell-off is historic. It's not the kind of history you want to be making."

The Dow ended the day at its lows, finishing down 678.91, or 7.3 percent, at 8,579.19. The blue chips hadn't closed below the 9,000 level since the June 30, 2003.

The Dow's tumble in the last seven sessions is its steepest ever in terms of points and the worst percentage decline since a downturn ending Oct. 26, 1987, when the Dow lost 23.8 percent. That sell-off included Black Monday, the Oct. 19, 1987 market crash that saw the Dow fall nearly 23 percent in a single day.

Broader stock indicators also tumbled Thursday. The S&P 500 fell 75.02, or 7.6 percent, to 909.92, while the Nasdaq composite index fell 95.21, or 5.5 percent, to 1,645.12.

The Russell 2000 index of smaller companies fell 47.37, or 8.7 percent, to 499.20.

A wave of fear about the economy sent stocks lower in the final two hours of trading after a volatile morning in which major indicators like the Dow and the S&P 500 index bobbed up and down. The Nasdaq, with a bevy of tech stocks, spent much of the session higher but eventually declined as the sell-off intensified. Still, its losses were less severe because of the relatively modest drops in names like Intel Corp. and Microsoft Corp.

On the New York Stock Exchange, declining issues came to nearly 3,000, while fewer than 250 advanced.

The sluggishness in the credit markets that triggered much of the heavy selling in markets around the world since mid-September appeared little changed Thursday following days of efforts by the Federal Reserve and other central banks to resuscitate lending.

Libor, the bank lending benchmark, for three-month dollar loans rose to 4.75 percent from 4.52 percent on Wednesday. That signals that banks remain hesitant to make loans for fear they won't be paid back.

More at: http://biz.yahoo.com/ap/081009/wall_street.html

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Merlyn

10-10-2008 02:54 AM

Re: Planetary financial crisis next week around Oct 7?

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Quote:

Central Banks Fail to Alleviate `Logjam' in Libor

By Mark Gilbert and Gavin Finch

Oct. 9 (Bloomberg) -- Central-bank efforts to drive down money-market borrowing costs with coordinated interest-rate cuts are failing, according to Nick Stamenkovic, a fixed-income strategist at RIA Capital Markets in Edinburgh.

``Central banks have pulled out all the stops and there's no sign whatsoever that money-market strains are easing,'' Stamenkovic said. ``The logjam is going to remain in place for some time to come. Three-month rates and beyond are actually deteriorating.''

The CHART OF THE DAY shows the divergence between the policy rates set by the Federal Reserve, the European Central Bank and the Bank of England, and the three-month cost of dollars, euros and pounds. The dollar London interbank offered rate climbed to its highest this year today, at 4.75 percent. The euro rate of 5.39 percent is up from 4.96 percent a month ago, while the pound rate has risen 43 basis points in the past three months to stand at 6.28 percent.

The Fed, the ECB and the Bank of England all reduced their key lending rates by half a point yesterday, with the central banks of Canada, Sweden, Switzerland and China also implementing cuts.

Link: http://www.bloomberg.com/apps/news?p...d=afUtOwmLw3vQ

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Merlyn

10-10-2008 04:49 PM

Re: Planetary financial crisis next week around Oct 7?

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Quote:

Berlusconi Says Leaders May Close World's Markets (Update1)

By Steve Scherer

Oct. 10 (Bloomberg) -- Italian Prime Minister Silvio Berlusconi said political leaders are discussing the idea of closing the world's financial markets while they ``rewrite the rules of international finance.''

``The idea of suspending the markets for the time it takes to rewrite the rules is being discussed,'' Berlusconi said today after a Cabinet meeting in Naples, Italy. A solution to the financial crisis ``can't just be for one country, or even just for Europe, but global.''

The Dow Jones Industrial Average fell as much 8.1 percent in early trading and pared most of those losses after Berlusconi's remarks. The Dow was down 0.5 percent to 8540.52 at 10:10 in New York.

Group of Seven finance ministers and central bankers are meeting in Washington today, and will stay in town for the International Monetary Fund and World Bank meetings this weekend. European Union leaders may gather in Paris on Oct. 12, three days before a scheduled summit in Brussels, Berlusconi said today, while Group of Eight leaders may hold a meeting on the crisis ``in coming days,'' he said.

Berlusconi didn't give any details about what kind of rules leaders were looking to change, except to say that leaders are ``talking about a new Bretton Woods.''

The Bretton Woods Agreements were adopted to rebuild the international economic system after World War II in a hotel in Bretton Woods, New Hampshire. The aim of the agreements was to establish a monetary management system, initially by pegging currencies to gold. The IMF was set up later to help manage the international financial system.

LINK: http://www.bloomberg.com/apps/news?p...d=aP5mpMUORBWM

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Merlyn

10-10-2008 05:27 PM

Re: Planetary financial crisis next week around Oct 7?

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See this comment in below article:
"the crisis is not in localized regions, but in the entire global structure”

Title of this thread:
Planetary financial crisis next week around Oct 7?

Quote:

The Stock Market Flees to London
World stock markets have been hit with a wave of selloffs. Russia’s RTC and MICEX indexes were among the loss leaders falling 11.25-14.35 percent. As a result, the exchanges have been closed and trading in Russian stock has been moved to London. The Russian markets were completely under the influence of outside forces before they closed down. U.S. Federal Reserve Board chairman Ben Bernanke was unable to calm sales-bent investors with the announcement that the board may raise the prime rate by 0.5 percent.

American indexes lost more than 5 percent on Tuesday, setting off a worldwide reaction. Yesterday, the Japanese Nikkei 225 lost 7.04 percent and the Topix index lost 8 percent, the most since 1987. Indonesian markets were closed indefinitely after its index lost 10 percent. “The world community has experience solving local crises, but the crisis is not in localized regions, but in the entire global structure,” commented Citibank chief economist for Russia Elina Rybakova.

The MICEX fell 13 percent on opening yesterday, which mounted to 14.35 percent (637.87 points) within half an hour. Trading was closed until Friday or until an order was received from the Federal Financial Markets to resume trading. By that time, the RTS index had fallen 11.25 percent to 761.63 points. Trading there was stopped for an hour but not resumed after 12:00. Now it too will wait for an order from the markets service. The spot market continued to operate and REPO and pre-negotiated deals were resumed after 4:00.

Trading in Russian stocks – depository notes on those stocks – was moved to London. The London Stock Exchange had lost an average of 15-20 percent at opening at 12:00 Moscow time. It began to recover gradually after 3:00, when the European Central Bank and U.S. Federal Reserve Board announced coordinated efforts to lower interest rates. Long-term investors, particularly the Capital and Dreyfuss funds began buying as speculators sold. The recovery was short-lived, however. Trading in Russian reached $1.96 billion. Trade in Russian stocks did not pick up yesterday. Investors are concerned about the behavior of the markets and possible future decisions of regulators.

Link: http://www.kommersant.com/p1037973/r...ancial_crisis/

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Merlyn

10-10-2008 08:23 PM

Re: Planetary financial crisis next week around Oct 7?

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I was emailed this info indicating they will be targeting the Libor rate.

Quote:

A well informed investor I speak to regularly relays that the 3:45 PM speech by Paulson, coming out of the IMF meetings, will include the roll out of a joint clearing mechanism to get interbank lending rates like LIBOR down. Treasury's GS wunderkind Kashkari is due out Monday AM with the opening TARP moves, which probably require equity recap announcements given the late stage of the game. And as you may already know, last night, Pelosi signaled November 17th the House & Senate will be called back for a $150b tax cut.

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All times are GMT. The time now is 08:18 PM.

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