Bankers Fixing The System story about banking industry in 2012 BBC documentary
With gripping first-hand accounts from banking insiders, regulators and politicians this film tells the story of two recent multi-billion pound trading disasters that rocked the City. It shows that some bankers are still taking reckless risks, five years after the crash that brought the world’s economy to its knees. Risk is the engine of growth but reckless risk can [...]
Speaking this week at the Western Economic Association International, economic forecaster Allen Sinai talked about the damage the “fiscal cliff” of 2013 will cause the economy. Sinai concludes that a recession is unavoidable if Congress does not act to fix the fiscal cliff.
The fiscal cliff has two components: (1) Taxmageddon, a $494 billion per year increase in tax increases set to take effect on January 1, 2013, and (2) federal [...]
via spiegel.de and google translate:
As the debt crisis worsens in Spain and Italy, financial experts are warning of the catastrophic consequences of a crash of the euro: the destruction of trillions in assets and record high unemployment levels, even in Germany. By SPIEGEL Staff
It is not long ago that Mario Draghi was spreading confidence and good cheer.”The worst is over,” the head of the European Central Bank (ECB), told Germany’simage only newspaper a [...]
One of the biggest risks to the world’s financial health is the $1.2 quadrillion derivatives market. It’s complex, it’s unregulated, and it ought to be of concern to world leaders that its notional value is 20 times the size of the world economy. But traders rule the roost — and as much as risk managers and regulators might want to limit that risk, they lack the power or knowledge to [...]
The Wolfson Prize offers £250,000 to the economist who comes up with the best plan to manage a potential break-up of the eurozone. The five ideas in the running are summarised here.
The conundrum posed is this: “If member states leave the Economic and Monetary Union, what is the best way for the economic process to be managed to provide the soundest foundation for the future growth and prosperity of the [...]
In his latest Sunday Start note, Morgan Stanley strategist Joachim Fels describes the mood and opinions of big investors at a recent event in Florence.
The gist: Most investors still aren’t betting on anyone quitting the Euro.
However, the beautiful historic setting didn’t fail to make an impression on most participants: while many worried about the potentially catastrophic consequences of a Greek exit from the euro (rightly so in my view), very few [...]
The optimists say its rise is inexorable, creating wealth for businesses and investors worldwide. Pessimists predict a crash, with catastrophic consequences.
But if there is one point on which everyone agrees, it is that all of our financial futures are intimately related to one country – China.
In this special report, Financial Mail explains how the communist nation of 1.3billion people is poised to dominate this century – and what its rise [...]
Recently I said all the trouble with Iran was over oil…….. and it looks like I’ll have to wash my mouth out after reading this…!
So now almost none of Iran’s oil will be traded in Dollars.
India and Japan have also recently agreed a 15 billion dollar currency exchange. This will tie their two currencies closer together.
The list of countries and trades no longer using the dollar for settlement for their trade is [...]
A collapse of the euro and break-up of the European Union would have catastrophic consequences for the global financial system, billionaire investor George Soros was quoted as saying.
“Today, the euro is potentially endangering the political cohesion of the European Union,” the Business Line newspaper cited Soros as saying in the south Indian city of Hyderabad.
“If the common currency were to break down, it will lead to the break up [...]
From Sovereign Man:
Yesterday, we discussed certain events that, in my view, are nearly mathematical certainties. Things like a restructuring of public pensions and Social Security in Europe and the U.S. Western governments blocking Internet and mobile networks. War. The U.S. government being forced to issue debt in a foreign currency.
All of these events are underpinned by a simple premise:
1) Public and private debts included, most western nations are insolvent. Big [...]
Analysis: No “grand bargain” means more euro stress
Reuters – 3 minutes 7 seconds ago.. .
By Noah Barkin
BERLIN (Reuters) – The euro zone has agreed to take a big leap forward in economic integration, but failed to deliver a convincing answer to investors worried about its ability to tackle threatening debt crises in Italy and Spain.
As a result, the deal clinched by European leaders in the early morning hours of Friday [...]
A leading internet security expert has warned that a cyber terrorist attack with “catastrophic consequences” looked increasingly likely in a world already in a state of near cyber war.
Eugene Kaspersky is not given to easy hyperbole. But the Russian maths genius who founded an internet security empire with a global reach, clutched at his thick mop of hair with both hands.
“I don’t want to speak about it. I don’t even [...]
“Believe me, the next step is a currency crisis because there will be a rejection of the dollar, the rejection of the dollar is a big, big event, and then your personal liberties are going to be severely threatened.” - Ron Paul
As usual the MSM did its usual superficial dog and pony show for the American public on Saturday and Sunday. The overall tone on every show [...]
The United States will hit the legal limit on its ability to borrow no later than May 16, Treasury Secretary Timothy Geithner said on Monday, ramping up pressure on Congress to act to avoid a debt default.
“The longer Congress fails to act, the more we risk that investors here and around the world will lose confidence in our ability to meet our commitments and [...]
And from the relentless shock and awe happening abroad every single day, we briefly turn our attention to the total financial chaos domestically. Following the settlement of $67.6 billion in debt from last week’s auctions, the Treasury managed to raise its dangerously low cash to a level that will give Tim Geithner pocket change for another week, or $99.5 billion. Alas, the cash buffer [...]
In the past 15 years residential real estate went from being shelter and a form of forced savings with modest equity upside to highly leveraged mass speculation—-a naked bet on prices—–by scores of millions of people. A great majority were ignorant of basic economic and financial principles or too lazy to think for themselves or greedy and deceitful or simply misinformed and deluded.
WashDc, the [...]
Indeed, it first hit in 2008 though it was almost entirely off the radar of the American public. While all eyes were glued to the carnage in the stock market and brokerage account balances, a far more serious crisis began to unfold rocking 30 countries around the globe.
Iâ€™m talking about food shortages.
Aside from a few rice shortages that were induced by export restrictions in Asia, food received little or no [...]