US Banking System Faces Imminent Collapse
The headline got your attention. Good. U.S. media has studiously ignored what the world's financial press knows. Get your financial house in order quickly, America.
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The Financial Times
HSBC warns of ‘tears’ if big deal goes wrong
By Sundeep Tucker and Victor Mallet in Hong Kong and Peter Thal Larsen in London
Published: June 27 2007 20:45 | Last updated: June 27 2007 20:45
The glut of credit in global financial markets, combined with excessive leverage, could all “end in tears” when a big transaction finally goes wrong, Stephen Green, chairman of HSBC, warned on Wednesday.
In an interview with the Financial Times, Mr Green admitted that he was “worried by the degree of leverage in some big ticket transactions nowadays” and felt that “something is going to end in tears”.
His comments highlighted the widespread unease among banking executives after five years of benign credit conditions and the growing amounts of leverage in the financial system.
This has been particularly notable in the collapse of the subprime mortgage market in the US, which this year triggered HSBC’s first profit warning.
Mr Green said he was also concerned about the difficulty of bailing out institutions affected by a blow-up because risk was now so widely spread throughout the financial system.
He said: ‘When your risk has been parcelled up hundreds or thousands of times, it’s much more difficult to orchestrate a reconstruction of a difficult situation and, therefore, the write-off then risks being worse than it needs to be.'
Update
Monday, July 2, 2007
S&P, Moody's Mask $200 Billion of Subprime Bond Risk
Just Say AAA: PAUL KRUGMAN - Housing Bubble
Update 2
Markets fear global 'credit crunch'
Crunch time?
Global credit woes
S&P, Moody's Mask $200 Billion of Subprime Bond Risk
Just Say AAA: PAUL KRUGMAN - Housing Bubble
US Banking System Faces Imminent Collapse
BIS warns of Great Depression dangers from credit spree
Banks `set to call in a swathe of loans
Update 3
The real risks emerge when Pandora's investment box is opened
Does it all add up?
Builders Have Further to Fall
Update
July 3, 2007
Economy Updates
http://mparent7777-2.blogspot.com/search/label/economy
they're only worried about how exposed THEY are to risk.
If the whole world crashed and burned, they couldn't care less as long as they stay on top.
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"Money" has no value - people do.
and how they always start and quite proportionally to those risks mentioned in this report. Financial banking deadlock is always unlocked by wars and "reconstruction" of the wrecked countries or world. Its like the reset button for the zionist bankers. So can we estimate what kind of war/s we heading into?! Having in mind the size of the US debt and current political situation for me it looks like great depression before WWII. I might be wrong but it stinks on WWIII especially when every new ruler is ushered in office we have some threats and terrorism marking that event. London?!! Does it ring any bells?!
"Let there be Light!"
Yes, Traveller, a market "correction" appears to be at hand.
Everybody Knows The Clock Is Ticking
Ex-CIA Officer: London Bomb--What a Crock of Crap!!
So, how many people did you use to buy those groceries, movie ticket, home, education....
bankers do.
I only use money because like it or not that is the standard measurement by which our civilization has agreed to measure value - to the exclusion of everything else.
Unfortunately, "money" is so badly manipulated by bankers and industrialists that to say it has real "value" is almost meaningless.
It has become nothing more than a vehicle for extortion and redistribution of wealth by those who control its volume in the marketplace, i.e., bankers and industrialists.
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"Money" has no value - people do.
(If you're pressured into removing this post, I won't take it personally. How could I? It would only mean that you smelled the sulfur on the devil himself in person.) My sister fully trusted the medical industry. After being taken off Paxil and Welbutrin under full medical supervision, she suffered common but highly secretive withdrawl symptoms that included her bowel "going to sleep" for two weeks. When this came up in conversation with a friend, that friend revealed that she had been paralyzed for one week after being taken off Paxil. A relative revealed that she had suffered extreme heart palpatations after being slowly weaned off Welbutrin and had to be rushed to the emergency ward at the ripe old age of 28.
How is all of this relevant to your board? This is a mega scam by the most trusted companies in the nation. Surely they'd know they'd be wiped out by any kind of class action lawsuit. They didn't care likely because they know from inside information that they'll never have to answer for it.
Remember something, cocaine and heroin are illegal not because of the high they'll give you, but because of what you'll do to dodge the withdrawl symptoms. By these accounts and those on the Internet, a lot of these psychotropic drugs are worse.
The Fed's Role in the Bear Stearns Meltdown
The end of the U.S. will occur when China decides to recall all of the paper money it holds on our country. This compounded with the current wars and the ones to be, along Israel's dominant influence in all aspects of American life will signal the end of the United States as we once knew, loved, and enjoyed. Like multi-culturalism, tolerance, diversity (which have all failed in the histories of the world), America, too, was an experiment. Too bad it was manipulated by an Israeli scientist, thus skewing the results for their own selfish gain and ruin the greatest nation ever on Earth. I hope the American Idol fans can say Bosnia.
Monday, July 2, 2007
S&P, Moody's Mask $200 Billion of Subprime Bond Risk
Related
Just Say AAA: PAUL KRUGMAN - Housing Bubble
US Banking System Faces Imminent Collapse
Monday, July 2, 2007
Markets fear global 'credit crunch'
Related
Crunch time?
Peston, BBCNews
Global credit woes
FT
S&P, Moody's Mask $200 Billion of Subprime Bond Risk
Just Say AAA: PAUL KRUGMAN - Housing Bubble
NYT
US Banking System Faces Imminent Collapse
FT
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By Edmund Conway, Economics Editor
Monday, July 2, 2007
Does it all add up?
Related
The real risks emerge when Pandora's investment box is opened
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By Saskia Scholtes in New York and Gillian Tett in London
As head of the financial stability unit at the Banque de France, Imène Rahmouni-Rousseau travelled to America this month to look at the current turmoil in the US subprime mortgage world.
System collapse might be imminent, if the right dominoes fall into place.
It presently appears that the SP500 (SPX) is on its way to 1655 on the week of September 10-14. The SPX looks to be forming a gigantic double top. September has often proven to be blood poison for equities. Year over year % change of the SPX versus GDP has already turned down.
The dollar index is trying to find support somewhere around 81.5. The index has found previous support at this level for several decades. Should the index break below 80, we are on our way to a global economic collapse. However, should either China or Japan be so reckless as to try to repatriate their dollar holdings, they would do so at an equivalency of cents on the dollar -- I don't believe this will ever happen. Although they could cause significant to the US economy by refusing to buy further government paper. Should the dollar index remain above 80, this means that the central banks pretty well have the currency/CDO situations under their control.
Oil appears to be either head and shoulders or double toppy. Should we go into a global, economic tailspin, then demand for oil will substantially moderate.
The CRB is in an uptrend, but there is recent evidence of much more volatility. Also, two Fibonacci counts for possible extent of the price movement are 360 (2.618) and 440 (4.236), respectively. Should this uptrend be ending, it would be due to decreased demand stemming from general economic weakness.
The 10 Year Treasury note, aside from all of the mob hysteria, is testing support at an uptrend channel line reaching back to 1985. If it sells at 102.5 or below, it will probably be due to interest rates spiking to protect the dollar. Still, no danger yet!
Gold has not been able to get past its 1980 top in the low 700s. The metal tried again in 2006, but to no avail. It is presently testing support on its 50 day simple moving average. An econometric model I have developed indicates that gold is basing with an upside objective of 770. Should my model prove to be correct, this would not be bullish for the dollar or the economy.
It is so difficult to derive an aequate assessment of the health of banks or the risks they have assumed, because of the proliferation of financial derivatives. These structured products are equivalent to nitroglycerine subject to variations in pressure or light. One cannot tell if anything or everything will cause it to expolde. Since these instruments are not marked to market and no one is certain of their value at any given time, the potential for disruption to the global, financial system is highly problematic.
I truly hope that the big boys can keep on juggling their fiat paper balls. If they happen to drop them at this time of low savings, high debt, speculative markets high above valuation levels, geopolitical unrest, and an era of low cost in wreaking havoc, then the upcoming decade could truly be bleak, indeed.
http://mparent7777-2.blogspot.com/search/label/economy