12-18-2007, 10:38 PM
THE ECB DUMPS OVER $500 BILLION INTO BANKING SYSTEM
http://larouchepac.com/news/2007/12/18/h...ng-sy.html
The European Central Bank (ECB) announced today the latest unprecedented move, probably destined to be unprecedented until tomorrow. As part of the deal struck by five central banks last week, unlimited amounts of short term money are being made available to any bank, at the cheapest possible rate of 4.21%. This is bare 21 points above the European official interest rate, and way below the interbanking rate which has recently been around 4.9%. The Financial Times reported that the ECB expected a demand for the two-week money of Euro 260.7 billions, but by mid-afternoon they were reporting that Euro 348.6 billion - $502 billion - had been grabbed up.
This is the largest single money injection by the ECB in history. Last week's announcement of auctions for about $100 billion had been judged "too little" by the financial markets.
Parallel to the ECB's idiocy, today, the Fed will start the first of a series of "universal" money auctions, i.e. where all banks can participate and borrow anonymously, for an amount of $20 billion. This is also the first auction in which the Fed will really implement the decision (announced last August) of accepting subprime and CDO assets as collateral, despite the fact that no one knows what they are worth, if anything at all. All this money is theoretically to be returned to the lender, but in practice such loans will be refinanced again and again, so that the money stays in the system and feeds hyperinflation.
While liquidity injections keep the corpse of the financial system on a life-support scheme, the general insolvency of the system cannot be cured. An extraordinary summit of the heads of state and government of Britain, Germany and France has been called by Gordon Brown during the first two weeks of January, in London, to address the financial crisis.
ONLY WE CAN WIN -
THEY CAN ONLY BRING DOWN THE HUMAN RACE
http://larouchepac.com/news/2007/12/18/j...human.html
Lyndon LaRouche, who announced back in July that the monetary-financial system had collapsed, responded today to the one-half trillion dollar dumping of helicopter money into the world banking system by the European Central Bank, that this was a "sign of the times - pure madness. The institutions are bankrupt, holding worthless junk, and they are pumping more worthless junk into the system. They can't win - only we can win, by cleaning out the junk, with my proposals. We may go down with them, if they sink the human race, but they can't win. We must ask people - are you crazy enough to go along with this crap?"
LaRouche said that you hear people babbling about whether the financial system will "recover," when in fact it exploded in July, and what we are seeing now is just the repercussions of that explosion, with an accelerating rate of crumbling of the economic system, dragged down by the collapse of the monetary-financial system. They may pass these plans, but the crap will still be inside, they can't get rid of it.
WILL THE CORPORATE BOND BUST BRING THE NEXT PHASE SHIFT?
http://larouchepac.com/news/2007/12/28/w...shift.html
Multiple sources have told Lyndon LaRouche and LPAC that the collapse of the monetary-financial system will enter a new, massive stage after January 3. The New York Times financial columnist Floyd Norris weighs in on the issue today, noting that the corporate bond market was as insane as the subprime binge over the past several years, but far larger. Now that the bond insurance industry is collapsing, according to Ted Seides of Protege Partners: "The severity of the subprime debacle may be only a prologue to the main act, a tragedy on the grand stage in the corporate credit markets." Seides calls the credit default swap (CDS) market an "insurance market with no reserves," and puts the total in CDS's at $45 trillion (!), noting that this is almost five times the U.S. national debt.
U.S. PHYSICAL ECONOMY SHOWS MORE SIGNS OF COLLAPSE
http://larouchepac.com/news/2007/12/28/u...lapse.html
Increase DecreaseDecember 28, 2007 (LPAC)--The impact of the global financial crash on the American economy, its remaining physical production, is becoming more and more severe because of the lack of any Congressional acknowledgment of that crash, or action to create "firewalls" to protect the real economy from it.
At least 16 U.S. states have suddenly found themselves in budget crises due to drops in tax revenues, and in two of them, California and Kentucky, the governors have announced they will call "fiscal emergencies." The reasons are spiking unemployment, Medicaid costs, as well as the rapid vaporization of housing-related taxes and fees due to the mortgage meltdown.
As 2007 ended Ford and Chrysler had placed 26,000 production employees on "temporary layoffs" in December, set to last at least through January, and potentially to become permanent. General Motors, which in 2007 "bought out" 46,000 GM and Delphi workers from the industry, announced it's getting rid of 5,000 more by the buyout route. All three automakers have cut their production for the first quarter of 2008 by another 10% or so as sales fall. Employment in the auto industry fell by 75,000 during 2007. New unemployment claims have been running at 345,000 per week in December, 15% higher than earlier in 2007.
Today's announcement of November new home sales by the Census Bureau was disastrous; sales fell to a 647,000 annual rate, when only on September 18, the Homebuilders Association warned gloomily that they might fall to 800,000 by the end of the year! So many "pending sales" have been falling through, that previous months' figures have been revised down, to where the sales were already well below the 800,000 rate even in September, when the Homebuilders were making their "forecast." The November sales figure is the lowest for any month in 12 years.
And durable goods orders for the U.S. economy, also announced today by the Commerce Department, are at $207 billion for November, a full 10% lower than November 2006. This drop is not adjusted for inflation, or for the falling dollar. It's purely and simply the falling economy. The only way to rebuild it, is blocking the crash with the Homeowners and Bank Protection Act and nation-to-nation New Bretton Woods agreements, building new infrastructure as per LaRouche's Economic Recovery Act.
BRITS ADMIT, THIS IS NO "SUBPRIME" CRISIS; BANKS CUT OFF COMMERCIAL LOANS
http://larouchepac.com/news/2007/12/31/b...loans.html
The miserable state of the British economy should alert any sane person that it is time to break from the Anglo-Dutch financier system--it is finished. The British financial press only lets out the dirty secret one drop at a time--revealing today that London commercial real estate is the about to collapse, and declaring that the "sub-prime is a red herring," according to commercial property agent DTZ, quoted in the Torygraph.
"Sub-prime is a red herring. It was simply the most stretched segment of an over-stretched debt market. As such, it has to be seen as a catalyst rather than the cause of the recent turmoil," a DTZ spokesman said. The volume of UK commercial transactions fell by 25% in 2007 to 48 billion pounds, and since the summer, prices in certain sectors of the market have fallen by 26%.
The bankrupt banks are pulling out of commercial property fast. The estate agent Savills reported that 8 of the 97 lenders in the United Kingdom are already out of the real estate sector; another 11 more are "reluctant" to lend and almost 30 will only lend on a "qualified" basis for commercial property deals. Who are these banks that have slammed the door? Savills wouldn't say, but the Torygraph says "they are believed to include Credit Suisse, Lehman Brothers, Bear Stearns, Deutsche Bank and Barclays Capital..." which have all, themselves, been dipping into emergency "helicopter money" to survive.
AN ECONOMIC SHITMAN SPEAKS OF CHAOS
American statesman Lyndon LaRouche said today that Alan "Bubbles" Greenspan's dire New Year's Eve warning that "something unexpected" will happen soon, which will "knock us all down," provides the true setting for the unleashing of chaos by a faction of the Anglo-Dutch financial oligarchy, which is now occurring around the world. LaRouche pointed to Pakistan, Southwest Asia, Kenya, South Africa, Yemen, and the FARC/Chavez moves in Ibero-American as in-progress chaos operations run by the Anglo-Dutch financier crowd. Greenspan's NPR interview, reported in MoneyNews.com today, quoted him, "What I have to forecast is that something will happen which is unexpected, which will knock us down ...The odds of that happening, I think, are rising, because we are getting in vulnerable areas."
Greenspan added, "What I point out is that we're in a turning phase, and that the extraordinary improvements that have occurred in the world economy in the last 15 years are transitory, and they're about to change ... So, I think this whole process will begin to reverse." Interest rates, Greenspan said "now are set by the supply of investment money worldwide; a force much larger than the concerted efforts of central banks, including the Fed ... We and all other central banks lost control of the forces directing higher prices in homes."
Greenspan admitted his miserable record at forecasting, despite sitting at the helm of the Fed for nearly two decades: "The record of forecasting not only of myself and of companies I have developed, but of the profession as a whole, is not particularly spectacular," Greenspan said. "Ive been forecasting since the early 1950s. I was as bad then as I am now." Apparently, a belated confession of an economic shitman.
http://larouchepac.com/news/2007/12/18/h...ng-sy.html
The European Central Bank (ECB) announced today the latest unprecedented move, probably destined to be unprecedented until tomorrow. As part of the deal struck by five central banks last week, unlimited amounts of short term money are being made available to any bank, at the cheapest possible rate of 4.21%. This is bare 21 points above the European official interest rate, and way below the interbanking rate which has recently been around 4.9%. The Financial Times reported that the ECB expected a demand for the two-week money of Euro 260.7 billions, but by mid-afternoon they were reporting that Euro 348.6 billion - $502 billion - had been grabbed up.
This is the largest single money injection by the ECB in history. Last week's announcement of auctions for about $100 billion had been judged "too little" by the financial markets.
Parallel to the ECB's idiocy, today, the Fed will start the first of a series of "universal" money auctions, i.e. where all banks can participate and borrow anonymously, for an amount of $20 billion. This is also the first auction in which the Fed will really implement the decision (announced last August) of accepting subprime and CDO assets as collateral, despite the fact that no one knows what they are worth, if anything at all. All this money is theoretically to be returned to the lender, but in practice such loans will be refinanced again and again, so that the money stays in the system and feeds hyperinflation.
While liquidity injections keep the corpse of the financial system on a life-support scheme, the general insolvency of the system cannot be cured. An extraordinary summit of the heads of state and government of Britain, Germany and France has been called by Gordon Brown during the first two weeks of January, in London, to address the financial crisis.
ONLY WE CAN WIN -
THEY CAN ONLY BRING DOWN THE HUMAN RACE
http://larouchepac.com/news/2007/12/18/j...human.html
Lyndon LaRouche, who announced back in July that the monetary-financial system had collapsed, responded today to the one-half trillion dollar dumping of helicopter money into the world banking system by the European Central Bank, that this was a "sign of the times - pure madness. The institutions are bankrupt, holding worthless junk, and they are pumping more worthless junk into the system. They can't win - only we can win, by cleaning out the junk, with my proposals. We may go down with them, if they sink the human race, but they can't win. We must ask people - are you crazy enough to go along with this crap?"
LaRouche said that you hear people babbling about whether the financial system will "recover," when in fact it exploded in July, and what we are seeing now is just the repercussions of that explosion, with an accelerating rate of crumbling of the economic system, dragged down by the collapse of the monetary-financial system. They may pass these plans, but the crap will still be inside, they can't get rid of it.
WILL THE CORPORATE BOND BUST BRING THE NEXT PHASE SHIFT?
http://larouchepac.com/news/2007/12/28/w...shift.html
Multiple sources have told Lyndon LaRouche and LPAC that the collapse of the monetary-financial system will enter a new, massive stage after January 3. The New York Times financial columnist Floyd Norris weighs in on the issue today, noting that the corporate bond market was as insane as the subprime binge over the past several years, but far larger. Now that the bond insurance industry is collapsing, according to Ted Seides of Protege Partners: "The severity of the subprime debacle may be only a prologue to the main act, a tragedy on the grand stage in the corporate credit markets." Seides calls the credit default swap (CDS) market an "insurance market with no reserves," and puts the total in CDS's at $45 trillion (!), noting that this is almost five times the U.S. national debt.
U.S. PHYSICAL ECONOMY SHOWS MORE SIGNS OF COLLAPSE
http://larouchepac.com/news/2007/12/28/u...lapse.html
Increase DecreaseDecember 28, 2007 (LPAC)--The impact of the global financial crash on the American economy, its remaining physical production, is becoming more and more severe because of the lack of any Congressional acknowledgment of that crash, or action to create "firewalls" to protect the real economy from it.
At least 16 U.S. states have suddenly found themselves in budget crises due to drops in tax revenues, and in two of them, California and Kentucky, the governors have announced they will call "fiscal emergencies." The reasons are spiking unemployment, Medicaid costs, as well as the rapid vaporization of housing-related taxes and fees due to the mortgage meltdown.
As 2007 ended Ford and Chrysler had placed 26,000 production employees on "temporary layoffs" in December, set to last at least through January, and potentially to become permanent. General Motors, which in 2007 "bought out" 46,000 GM and Delphi workers from the industry, announced it's getting rid of 5,000 more by the buyout route. All three automakers have cut their production for the first quarter of 2008 by another 10% or so as sales fall. Employment in the auto industry fell by 75,000 during 2007. New unemployment claims have been running at 345,000 per week in December, 15% higher than earlier in 2007.
Today's announcement of November new home sales by the Census Bureau was disastrous; sales fell to a 647,000 annual rate, when only on September 18, the Homebuilders Association warned gloomily that they might fall to 800,000 by the end of the year! So many "pending sales" have been falling through, that previous months' figures have been revised down, to where the sales were already well below the 800,000 rate even in September, when the Homebuilders were making their "forecast." The November sales figure is the lowest for any month in 12 years.
And durable goods orders for the U.S. economy, also announced today by the Commerce Department, are at $207 billion for November, a full 10% lower than November 2006. This drop is not adjusted for inflation, or for the falling dollar. It's purely and simply the falling economy. The only way to rebuild it, is blocking the crash with the Homeowners and Bank Protection Act and nation-to-nation New Bretton Woods agreements, building new infrastructure as per LaRouche's Economic Recovery Act.
BRITS ADMIT, THIS IS NO "SUBPRIME" CRISIS; BANKS CUT OFF COMMERCIAL LOANS
http://larouchepac.com/news/2007/12/31/b...loans.html
The miserable state of the British economy should alert any sane person that it is time to break from the Anglo-Dutch financier system--it is finished. The British financial press only lets out the dirty secret one drop at a time--revealing today that London commercial real estate is the about to collapse, and declaring that the "sub-prime is a red herring," according to commercial property agent DTZ, quoted in the Torygraph.
"Sub-prime is a red herring. It was simply the most stretched segment of an over-stretched debt market. As such, it has to be seen as a catalyst rather than the cause of the recent turmoil," a DTZ spokesman said. The volume of UK commercial transactions fell by 25% in 2007 to 48 billion pounds, and since the summer, prices in certain sectors of the market have fallen by 26%.
The bankrupt banks are pulling out of commercial property fast. The estate agent Savills reported that 8 of the 97 lenders in the United Kingdom are already out of the real estate sector; another 11 more are "reluctant" to lend and almost 30 will only lend on a "qualified" basis for commercial property deals. Who are these banks that have slammed the door? Savills wouldn't say, but the Torygraph says "they are believed to include Credit Suisse, Lehman Brothers, Bear Stearns, Deutsche Bank and Barclays Capital..." which have all, themselves, been dipping into emergency "helicopter money" to survive.
AN ECONOMIC SHITMAN SPEAKS OF CHAOS
American statesman Lyndon LaRouche said today that Alan "Bubbles" Greenspan's dire New Year's Eve warning that "something unexpected" will happen soon, which will "knock us all down," provides the true setting for the unleashing of chaos by a faction of the Anglo-Dutch financial oligarchy, which is now occurring around the world. LaRouche pointed to Pakistan, Southwest Asia, Kenya, South Africa, Yemen, and the FARC/Chavez moves in Ibero-American as in-progress chaos operations run by the Anglo-Dutch financier crowd. Greenspan's NPR interview, reported in MoneyNews.com today, quoted him, "What I have to forecast is that something will happen which is unexpected, which will knock us down ...The odds of that happening, I think, are rising, because we are getting in vulnerable areas."
Greenspan added, "What I point out is that we're in a turning phase, and that the extraordinary improvements that have occurred in the world economy in the last 15 years are transitory, and they're about to change ... So, I think this whole process will begin to reverse." Interest rates, Greenspan said "now are set by the supply of investment money worldwide; a force much larger than the concerted efforts of central banks, including the Fed ... We and all other central banks lost control of the forces directing higher prices in homes."
Greenspan admitted his miserable record at forecasting, despite sitting at the helm of the Fed for nearly two decades: "The record of forecasting not only of myself and of companies I have developed, but of the profession as a whole, is not particularly spectacular," Greenspan said. "Ive been forecasting since the early 1950s. I was as bad then as I am now." Apparently, a belated confession of an economic shitman.