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RUSSIA, CHINA BLAME WOES ON CAPITALISM – SPEECHES CRITICIZE INAPPROPRIATE POLICIES, FOCUS ON DOLLAR’S ROLE; YET PUTIN SENDS OBAMA CONCILIATORY SIGNAL

Posted by Gilmour Poincaree on January 29, 2009

JANUARY 29, 2009

by Marc Champion in Davos, Switzerland; Andrew Batson in Beijing and Greg White in Moscow

PUBLISHED BY ‘THE WALL STREET JOURNAL’ (USA)

The premiers of Russia and China slammed the U.S. economic system in speeches Wednesday, holding it responsible for the global economic crisis.

Both focused on the role of the U.S. dollar, with China’s Premier Wen Jiabao calling for better regulation of major reserve currencies and Russia’s Prime Minister Vladimir Putin calling over-reliance on the dollar “dangerous.”

Speaking on the opening day of the World Economic Forum in Davos, Switzerland, they both urged more international cooperation to escape the downturn. They also talked up the abilities of their own economies to ride out the recession. Mr. Wen said he was “confident” China would hit its 8% growth target for this year even though that was “a tall order.” (See the full text)

The Russian and Chinese leaders also called for cooperation with U.S. President Barack Obama, but it was a chilly reception for the new administration that reflected growing anger in economies that are now getting hit hard by a financial crisis that began with subprime mortgages sold in the U.S.

Mr. Putin was characteristically blunt. He called for the development of multiple, regional reserve currencies in addition to the dollar. “Excessive dependence on a single reserve currency is dangerous for the global economy,” Mr. Putin said. (See the full text)

The Russian leader mocked U.S. businessmen who he said had boasted at last year’s Davos meeting of the U.S. economy’s fundamental strength and “cloudless” prospects. “Today, investment banks, the pride of Wall Street, have virtually ceased to exist,” he said.

Earlier, Mr. Wen called for an expansion of regulatory “coverage of the international financial system, with particular emphasis on strengthening the supervision on major reserve currencies.”

While Mr. Wen never named the U.S., his critique of its failings was as sweeping as Mr. Putin’s. The financial crisis, he said, was “attributable to inappropriate macroeconomic policies of some economies and their unsustainable model of development characterized by prolonged low savings and high consumption; excessive expansion of financial institutions in blind pursuit of profit” – and other excesses.

“The entire economic growth system, where one regional center prints money without respite and consumes material wealth, while another regional centre manufactures inexpensive goods … has suffered a major setback,” Mr. Putin said.

Mr. Wen’s comments came just days after U.S. Treasury Secretary Timothy Geithner accused China of manipulating its currency for economic gain. The Chinese premier gently, but firmly warned that if Washington and Beijing chose confrontation, both would be losers.

But the different tones of the two speeches, and the fact that Mr. Wen didn’t call for replacing the dollar’s role as the world’s reserve currency but regulating it, reflect crucial differences in the important emerging economies.

A spokeswoman for the U.S. Treasury Department declined to comment on the remarks in the speeches. The White House did not respond to requests for comment.

Many of the attendees at Davos took the remarks from Mr. Putin and Mr. Wen in stride. “The sad thing is is that we might have scoffed at this a while ago. But we really dragged the world down” economically, Alan Blinder, former vice chairman of the U.S. Federal Reserve, said in an interview after the speeches.

The rapid collapse of oil and commodities prices has hit Russia hard on top of the ripples of the financial crisis. The government now forecasts the economy will shrink for the first time in a decade this year, after growing 6% last year.

“In a very real sense Russia has been kicked to the margins, while China has become pivotal to any resolution of the financial crisis,” says Bob Lo, Director of the Russia and China programs at the Center for European Reform in London.

Mr. Putin’s government has spent $200 billion of hard currency reserves to defend the Russian currency, the ruble. It has spent as much again in a bailout package that amounts to 15% of gross domestic product, one of the largest responses to the financial crisis in the world. Unlike China, Russia’s economy is too dependent on commodities exports and too small to play a significant role in any global recovery, says Mr. Lo.

Russia also has negligible trade with the U.S., while Chinese exports are heavily dependent on U.S. consumers and Beijing holds $2 trillion in U.S. debt, prompting a much more cautious approach towards Washington and the dollar in Beijing.

The net effect of falling oil prices and the downturn, however, has been to make Russia more vulnerable and the Kremlin weaker, analysts say. Russian officials have begun to send out more conciliatory signals to the new U.S. administration.

“We wish the new team success,” Mr Putin said Wednesday, calling on it to cooperate.

China, too, is suffering from the downturn. Many independent economists, including economists at the International Monetary Fund, question whether Beijing will be able to meet its 8% growth target this year.

Developed nations are increasingly calling for China to do more to stimulate its own economy. On Wednesday, Mr. Wen gave a detailed account of the four trillion yuan ($585 billion) investment program China announced in November. “As a big responsible country” China was actively boosting domestic, and particularly consumer demand, said Mr. Wen.

The headline sum in the program would likely be equivalent to around 3% of gross domestic product in 2009 and 2010. But even government officials aren’t promising that much of a boost to the economy. Zhang Ping, the head of the National Development and Reform Commission, in November estimated it would add about one percentage point to GDP growth this year and next.

That may have seemed like a lot at the time, but expectations for global and Chinese growth have rapidly deteriorated since then. Mr. Wen said growth slowed to 6.8% in the fourth quarter from the same period a year earlier. That’s a little more than half the 13% gain in 2007, at the height of the boom. Some economists believe China could grow by as little as 5% this year, too little to provide jobs for the graduates flooding into the labor market from Chinese universities and schools each year and a further drag on the global economy.

Less noticed in Mr. Geithner’s repetition of Mr. Obama’s campaign-trail assertion that China “manipulates” its currency last week was his argument that the long U.S.-Chinese dispute over currency didn’t matter as much as getting China to do more to boost its economic growth.

“Given the crisis the immediate focus needs to be on the broader issue of stabilizing domestic demand in China and the U.S.,” Mr. Geithner said in his written response to questions during his Senate confirmation process. “A further slowdown in China would lead to a substantial fall in world growth (and demand for U.S. exports) and delay recovery from the crisis.”

Printed in The Wall Street Journal, page A6

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘THE WALL STREET JOURNAL’ (USA)

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Posted in BANKING SYSTEM - USA, BANKING SYSTEMS, BARACK HUSSEIN OBAMA -(DEC. 2008/JAN. 2009), CENTRAL BANKS, CHINA, COMMERCE, CURRENCIES, DOLLAR (USA), ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FOREIGN POLICIES, FOREIGN POLICIES - USA, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION, INDUSTRIAL PRODUCTION - USA, INDUSTRIES, INDUSTRIES - USA, INTERNATIONAL, INTERNATIONAL RELATIONS, PUBLIC SECTOR AND STATE OWNED ENTERPRISES, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, RESTRUCTURING OF THE PUBLIC SECTOR, RUSSIA, THE FLOW OF INVESTMENTS, THE PRESIDENCY - USA, USA | Leave a Comment »

HEDGEHOGS RAVAGED BY BEARS

Posted by Gilmour Poincaree on January 29, 2009

Feb. 2, 2009

by Barton Biggs

PUBLISHED BY ‘NEWSWEEK’ (USA)

BARTON BIGGS

The equity markets of the world have many afflictions, but one of the most debilitating is the plague being experienced by the hedgehogs (a.k.a. hedge funds). Bright, young, bushy-tailed hedgehogs are dying right and left, and fatter, older, more experienced members of the species are starving and sickly. The irony is that hedge funds didn’t do all that badly last year. The Hennessee Hedge Fund Index was off 19.2 percent, although the average fund lost more like 25 to 27 percent. By contrast, the S&P 500 fell 37 percent, the MSCI All County World Index was down 42 percent and the MSCI Emerging Markets Index fell 53 percent. Still, hedge funds failed to do what they promise: to protect their clients’ assets in a bear market.

We live in extravagant times. In January 2008 there were about 8,000 hedge funds worldwide running about $2 trillion of investor money. As the dust settles, the best guess is that about 2,000 hedge funds have gone out of business and another 2,000 will disappear in the next year. Ravaged by killer bear markets as well as a deluge of redemptions, the total capital run by hedge funds today is now about $1.2 trillion, according to Hennessee.

In the good old days, hedge funds were the most active investors; their $2 trillion was leveraged up to $8 trillion—the size of the U.S. equity market today. Things have changed. At a conference in London last week, Morgan Stanley said that at the beginning of 2008,65 to 70 percent of its institutional equity business in Europe was from hedge funds and only 30 percent was from traditional investment management firms. Now, the percentages are reversed. At this same conference, one of the largest funds of hedge funds in the world said that the net long positions of the 135 hedge funds in its portfolio was now 10 percent (i.e., only 10 percent of the fund’s capital was exposed to the market), and that the funds were less leveraged than ever.

The plague is likely to continue. The three classes of investors that dominate hedge-fund money are the fund of funds (FOFs), institutional investors (endowments, foundations, pension funds) and wealthy individuals. All three categories are scared to death, experiencing unprecedented liquidity squeezes, and deeply concerned about not the return on their money but the return of their money.

The FOFs, which now account, according to Hennessee, for 32 percent of hedge-rand assets, had in the past decade been the biggest winners in the entire investment-management business, with their assets growing 25 percent a year. Now suddenly they are suffering an epidemic of redemptions. A year ago they were 40 percent of assets. Fjven before the Madoff affair, their clients were questioning whether the extra fees they pay were worth it, since they were not being protected from losses. The Madoff Ponzi scheme and the FOFs’ involvement with Madoff was a brutal blow. In addition, many FOFs had leveraged up their portfolios to maximize their returns for competitive reasons. Instead they maximized their losses. The big institutional investors are also having a horrendous time. Many of them switched from a highly liquid asset-allocation strategy of stocks, bonds and cash to the so-called Endowment Model, which trivialized bonds, minimized listed equities and maximized so-called alternative assets (hedge funds, private equity, real estate and oil and gas partnerships). The managers of all these asset classes charge very high fees and rely on large amounts of debt to leverage up returns. Now, the debt money is simply not available. Meanwhile, global economic weakness is ravaging private equity, with real estate close behind. Many big institutions have been using the gains in their endowment portfolios for the funding of current operations. They are now faced with either sharply cutting operating budgets or selling investment assets. Charitable organizations and educational institutions are hurting big time. Harvard (one that has funded a major part of its operating budget from its endowment) has been dumping its private-equity stakes at 50 to 80 percent discounts, and recently raised money by issuing bonds. Pension funds, too, need cash. There is a desperate scramble for liquidity, which may force institutional investors to redeem from their large hedge-fund stakes.

As for individuals, they are just plain terrified from the wealth destruction they have suffered in the past year.

Does all this spell another horrendous year for the stock markets as a tsunami of forced selling overwhelms the great valuations that exist in many blue-chip stocks? Not necessarily, although it is a risk to bear in mind. I’m bullish because I’m a value investor. Stocks are dirt cheap, and I think that at some point this year we’re going to have a massive rally. But whatever happens to stock markets, the hedge-fund industry in the future will be much smaller, far less leveraged and have considerably lower fees. Hedge-fund and private-equity managers have been among the most overcompensat-ed executives in the history of the world. The golden years are over and gone, and I must admit the world will not be diminished by their passing.

(*) – BIGGS is a managing partner of’Traxis Partners hedge fund in New York.

PUBLISHED BY ‘NEWSWEEK’ (USA)

Posted in BANKING SYSTEM - USA, BANKRUPTCIES - USA, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL MARKETS, FINANCIAL SERVICES INDUSTRIES, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, THE FLOW OF INVESTMENTS, USA | Leave a Comment »

U.S. FEDERAL RESERVE STRUGGLES TO REVIVE ECON GROWTH

Posted by Gilmour Poincaree on January 28, 2009

Thursday, January 29, 2009

Agence France-Presse

PUBLISHED BY ‘THE MANILA TIMES’ (Philippines)

WASHINGTON, D.C.: The US Federal Reserve wraps up a two-day policy meeting Wednesday focused on new tools to revive a moribund economy that has so far failed to respond to its zero-interest rate policy.

The Federal Open Market Committee (FOMC) meeting was being held six weeks after the central bank slashed its base-lending rate to a range of zero to 0.25 percent and predicted “exceptionally low” rates to persist.

An announcement was due around 1915 GMT Wednesday.

Joseph Balestrino at Federated Investors said he expected some clues from the Fed on additional efforts to get credit flowing in the economy.

“There’s not much more the central bank can do on the monetary policy front after having lowered its target federal funds rate to a record low,” he said.

“What may be worth noting is the language the Fed uses to describe the state of an economy that, since the two-day meeting that ended December 16, appears to have worsened on most every front.”

Balestrino said Fed chairman Ben Bernanke and his colleagues “are likely to be more explicit about their plans for quantitative easing—that is, using measures such as direct injections into banks and purchases of debt securities to pump more capital into ailing institutions and the markets.”

Sacha Tihanyi, analyst at Scotia Capital, said the market expects the Fed to take further action to help fire up growth.

“With rates going nowhere for some time, the market’s focus will be on whether the Fed will be looking to buy government—or corporate—securities in the near future,” Tihanyi said.

“This is a highly controversial step and some see this as somewhat of a high-risk policy but on the other hand, it is one of the few avenues the Fed has left open to it with regard to further easing monetary conditions.”

Despite the zero-rate policy, Bernanke and others have repeatedly said the central bank is not out of ammunition to fight the crisis. But Bernanke avoided the use of the term “quantitative easing,” saying the Fed has engaged in what he called “credit easing” to spur more lending activity.

The Fed “has already done a lot and will continue to do a lot” in addition to moving on interest rates, said Nariman Behravesh, chief economist at IHS Global Insight.

The central bank has already offered exceptional aid to banks and other firms, and has been buying up mortgage-backed bonds and commercial paper to help unfreeze credit in those areas.

Analysts say this has helped somewhat but that credit markets remain under stress, with lenders and consumers skittish about taking on new risks.

Morgan Stanley economist Ted Wieseman said he expected nothing dramatic from the Fed meeting.

“Obviously rates have already been cut about as low as they can go,” he said.

“If long-end [Treasury bond] yields continue surging higher, the Fed will undoubtedly eventually step in and start buying, but such an announcement probably wouldn’t come in an FOMC statement.”

Economist Joseph LaVorgna at Deutsche Bank said the Fed might not yet be ready for direct purchases of US Treasuries.

“Even though we believe the Fed will eventually be forced to purchase Treasuries in an attempt to cap their yields we do not believe the Fed is going to announce those intentions today,” he said.

He said some members might be uncomfortable with what could be seen as a drastic step.

“Rather, we expect the Fed to repeat the ‘committee is evaluating the potential benefits of purchasing longer-term Treasury securities.’”

Scott Brown, chief economist at Raymond James & Associates, said each word of the Fed statement would be weighed and parsed carefully.

“The wording of the policy statement will signal future intentions,” he said.

“In each statement, the Fed describes its economic outlook. A darkening in that outlook would likely mean that further stimulus efforts are coming. A brighter outlook would suggest that policy will become less accommodative.”

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘THE MANILA TIMES’ (Philippines)

Posted in BANKING SYSTEM - USA, BANKRUPTCIES - USA, CENTRAL BANKS, COMMERCE, DOLLAR (USA), ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL MARKETS, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, MACROECONOMY, NATIONAL DEBT - USA, PUBLIC SECTOR AND STATE OWNED ENTERPRISES, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, RESTRUCTURING OF THE PUBLIC SECTOR, STATE TARIFFS, THE FLOW OF INVESTMENTS, THE WORK MARKET, THE WORKING ENVIRONMENT, TRADE DEFICIT - USA, USA | Leave a Comment »

STATE FARM TO STOP PROVIDING PROPERTY INSURANCE (USA)

Posted by Gilmour Poincaree on January 28, 2009

January 27, 2009

by Russel Ray – The Tampa Tribune

PUBLISHED BY ‘THE TAMPA BAY ONLINE’ (USA)

State Farm, the STATE FARM INSURANCEsecond-largest property insurer in Florida, said today that it will stop providing property insurance statewide, a move that would affect more than 1 million policyholders.

State Farm’s plan to drop policyholders was submitted to the Office of Insurance Regulation, which has 90 days to review the proposal.

“Nothing will happen until that review is complete,” said State Farm spokesman Chris Neal.

The plan calls for dropping policyholders over a two-year period beginning in November. State Farm has nearly 100,000 homeowner policies in Hillsborough and Pinellas counties.

The move comes two weeks after Florida Insurance Commissioner Kevin McCarty rejected State Farm’s request to raise rates 47 percent on average statewide.

State Farm said operating costs have risen along with the number of claims. What’s more, the insurer said state-mandated discounts for homeowners who strengthen their homes against hurricanes have slashed the company’s revenues.

“This is not an action we wanted to take, but one we must take given the realities of the Florida property insurance market,” Jim Thompson, president of State Farm Florida, said in a statement. “We regret the impact this will have on our customers, employees and agents in Florida.”

Kevin McCarty

The move comes after Florida Insurance Commissioner Kevin McCarty recently rejected State Farm’s request to raise rates 47 percent on average statewide.

The cancellation of more than 1 million policies could deepen Florida’s insurance crisis and is sure to increase the policy count at state-run Citizens Property Insurance Corp., the state’s so-called insurer of last resort and the largest property insurer in the state.

“We have been hearing for months of possible plans to make such a move in Florida,” McCarty said in a statement. “I will do everything within my power to protect Florida consumers from unnecessary destabilization of the insurance market that this might cause.”

Reporter Russell Ray can be reached at (813) 259-7870

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘THE TAMPA BAY ONLINE’ (USA)

Posted in BANKING SYSTEM - USA, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL MARKETS, FINANCIAL SERVICES INDUSTRIES, HOUSING CRISIS - USA, INDUSTRIES - USA, PUBLIC SECTOR AND STATE OWNED ENTERPRISES, REAL ESTATE INDUSTRIES, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, THE FLOW OF INVESTMENTS, USA | Leave a Comment »

FUGITIVE INVESTOR (ARTHUR NADEL) TURNS HIMSELF IN

Posted by Gilmour Poincaree on January 28, 2009

January 28, 2009

by Elaine Silvestrini – News Channel 8 reporter Krista Klaus contributed to this report

PUBLISHED BY ‘THE TAMPA BAY ONLINE’ (USA)

TAMPA – Arthur Nadel, the hedge fund manager from Sarasota who disappeared recently, turned himself in Tuesday, an FBI spokesman said.

Before disappearing, Nadel wrote to his wife, instructing her to take money out of credit and other accounts before the authorities blocked access, a criminal complaint states.

The funds Nadel controlled were nearly empty, but Nadel had homes in Sarasota and North Carolina and owned 500 acres of a development in North Carolina and three private planes, the complaint states.

Nadel, 76, surrendered at 9:45 a.m. at the Tampa field office, FBI spokesman Dave Couvertier said. Two lawyers, Barry Cohen and his partner, Todd Foster, were with him.

Nadel appeared in court Tuesday afternoon with shackles on his hands and feet. Several family members, including his wife, sat in the courtroom spectator section but declined to talk to reporters.

Cohen told U.S. Magistrate Mark Pizzo that Nadel is “suffering some emotional problems” and has been “visiting with a psychiatrist the past week.” Nadel wanted to check himself in to a hospital but turned himself in at the insistence of the U.S. attorney’s office, Cohen said.

Cohen didn’t say where Nadel has been the past 13 days but told Pizzo his client “came back when he was notified of a warrant.”

Nadel initially will be prosecuted in the Southern District of New York, said Couvertier, who said the Tampa and New York offices of the FBI are working together. He said Nadel has victims around the world.

A federal criminal complaint out of New York charges Nadel with securities and wire fraud. Each charge carries a maximum sentence of 20 years, along with financial penalties.

Nadel is accused of misleading investors by exaggerating the level of money in his investment funds and by inflating their investment returns, according to the U.S. attorney’s office complaint and a similar civil court complaint filed by the Securities and Exchange Commission.

Investigators also allege that Nadel transferred millions of dollars of investors’ money to bank accounts he controlled.

A court-appointed receiver overseeing Nadel’s investment companies says in a court filing that Nadel’s “scheme” dates at least to 2003.

Nadel’s family reported him missing Jan. 14.

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘THE TAMPA BAY ONLINE’ (USA)

Posted in BANKING SYSTEM - USA, BANKRUPTCIES - USA, CRIMINAL ACTIVITIES, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL MARKETS, FINANCIAL SCAMS, FINANCIAL SERVICES INDUSTRIES, FRAUD, HOUSING CRISIS - USA, INDUSTRIES - USA, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, THE FLOW OF INVESTMENTS, USA | Leave a Comment »

U.S. BUSINESS CLIMATE WORST IN 27 YRS

Posted by Gilmour Poincaree on January 26, 2009

13:17:00 01/26/2009

by Lucia Mutikani – Reuters

PUBLISHED BY ‘THE PHILIPPINE DAILY INQUIRER’

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘THE PHILIPPINE DAILY INQUIRER’

Posted in BANKING SYSTEM - USA, BANKRUPTCIES - USA, CENTRAL BANKS, COMMERCE, COMMODITIES MARKET, CRIMINAL ACTIVITIES, CRIMINAL FOREIGN POLICIES, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FINANCIAL SCAMS, FOREIGN POLICIES - USA, FRAUD, HEALTH CARE - USA, HOUSING CRISIS - USA, HUMAN RIGHTS, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, INTERNATIONAL RELATIONS, MACROECONOMY, NATIONAL DEBT - USA, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, RESTRUCTURING OF THE PUBLIC SECTOR, STATE TERRORISM, STOCK MARKETS, THE FLOW OF INVESTMENTS, THE ISRAELI-PALESTINIAN STRUGGLE, THE OCCUPATION WAR IN IRAQ, TRADE DEFICIT - USA, UNEMPLOYMENT, USA, WAR CRIMES, WAR IN AFGHANISTAN, WARS AND ARMED CONFLICTS | Leave a Comment »

THE FOOL’S NEWEST TAKE ON MUTUAL FUNDS (USA)

Posted by Gilmour Poincaree on January 25, 2009

Sun, Jan. 25, 2009

by Charles A. Jaffe – Inquirer Financial Columnist

PUBLISHED BY ‘THE PHILADELPHIA DAILY & INQUIRER’ (USA)

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘THE PHILADELPHIA DAILY & INQUIRER’ (USA)

Posted in BANKING SYSTEM - USA, BANKRUPTCIES - USA, CRIMINAL ACTIVITIES, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL MARKETS, FINANCIAL SCAMS, FINANCIAL SERVICES INDUSTRIES, FRAUD, HOUSING CRISIS - USA, INDUSTRIES - USA, PENSION FUNDS, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, THE FLOW OF INVESTMENTS, USA | Leave a Comment »

ANALYSIS: HARD TIMES HELP GEITHNER’S TREASURY BID

Posted by Gilmour Poincaree on January 25, 2009

Sunday January 25, 2009

Associated Press

PUBLISHED BY ‘THE STAR’ (Malaysia)

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘THE STAR’ (Malaysia)

Posted in BANKING SYSTEM - USA, BANKRUPTCIES - USA, BARACK HUSSEIN OBAMA -(DEC. 2008/JAN. 2009), ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL MARKETS, FOREIGN POLICIES, FOREIGN POLICIES - USA, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, INTERNATIONAL RELATIONS, MACROECONOMY, NATIONAL DEBT - USA, PUBLIC SECTOR AND STATE OWNED ENTERPRISES, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, RESTRUCTURING OF THE PUBLIC SECTOR, THE FLOW OF INVESTMENTS, THE ISRAELI-PALESTINIAN STRUGGLE, THE OCCUPATION WAR IN IRAQ, THE PRESIDENCY - USA, THE WORK MARKET, TRADE DEFICIT - USA, USA, WAR IN AFGHANISTAN, WARS AND ARMED CONFLICTS | Leave a Comment »

U.N. CRIME CHIEF SAYS DRUG MONEY FLOWED INTO BANKS – THE UNITED NATIONS’ CRIME AND DRUG WATCHDOG HAS INDICATIONS THAT MONEY MADE IN ILLICIT DRUG TRADE HAS BEEN USED TO KEEP BANKS AFLOAT IN THE GLOBAL FINANCIAL CRISIS, ITS HEAD WAS QUOTED AS SAYING ON SUNDAY

Posted by Gilmour Poincaree on January 25, 2009

Sunday January 25, 2009

Reuters

PUBLISHED BY ‘THE STAR’ (Malaysia)

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘THE STAR’ (Malaysia)

Posted in BANKING SYSTEM - USA, BANKING SYSTEMS, CRIMINAL ACTIVITIES, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FINANCIAL SCAMS, FINANCIAL SERVICES INDUSTRIES, FRAUD, HOUSING CRISIS - USA, INDUSTRIES - USA, INTERNATIONAL, MONEY LAUDERING, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, THE FLOW OF INVESTMENTS, THE UNITED NATIONS, USA | Leave a Comment »

IT’S TIME TO UNRAVEL A FINANCIAL KNOT (USA)

Posted by Gilmour Poincaree on January 25, 2009

Sunday, January 25, 2009 at 4:23 a.m.

by Gretchen Morgenson – The New York Times

PUBLISHED BY ‘THE PRESS DEMOCRAT’ (USA)

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘THE PRESS DEMOCRAT’ (USA)

Posted in BANKING SYSTEM - USA, BANKING SYSTEMS, BANKRUPTCIES - USA, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL MARKETS, FINANCIAL SERVICES INDUSTRIES, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, RESTRUCTURING OF THE PUBLIC SECTOR, THE FLOW OF INVESTMENTS, USA | Leave a Comment »

MOTOR CITY MALAISE (USA)

Posted by Gilmour Poincaree on January 25, 2009

Sun, Jan. 25, 2009

by Maria Panaritis – Inquirer Staff Writer

PUBLISHED BY ‘THE PHILADELPHIA INQUIRER’ (USA)

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘THE PHILADELPHIA INQUIRER’ (USA)

Posted in AUTOMOTIVE INDUSTRY, BANKING SYSTEM - USA, BANKRUPTCIES - USA, CENTRAL BANKS, COMMERCE, COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL MARKETS, FOREIGN WORK FORCE - LEGAL, HISTORY, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, MACROECONOMY, NATIONAL WORK FORCES, RECESSION, RESTRUCTURING OF PRIVATE COMPANIES, THE WORK MARKET, THE WORKERS, THE WORKING ENVIRONMENT, UNEMPLOYMENT, USA | Leave a Comment »

HOW ABOUT A BAD BANK FOR DAMAGED ASSETS ? (USA)

Posted by Gilmour Poincaree on January 25, 2009

Sun, Jan. 25, 2009

by Joseph N. DiStefano

PUBLISHED BY ‘THE PHILADELPHIA INQUIRER’ (USA)

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘THE PHILADELPHIA INQUIRER’ (USA)

Posted in BANKING SYSTEM - USA, BANKRUPTCIES - USA, CENTRAL BANKS, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL MARKETS, FINANCIAL SERVICES INDUSTRIES, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, MACROECONOMY, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, RESTRUCTURING OF THE PUBLIC SECTOR, THE FLOW OF INVESTMENTS, USA | Leave a Comment »

THE REIGN OF THAIN GOES MOSTLY DOWN THE DRAIN (USA)

Posted by Gilmour Poincaree on January 25, 2009

January 23, 2009

by Loren Steffy

PUBLISHED BY ‘THE HOUSTON CHRONICLE’ (USA)

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PUBLISHED BY ‘THE HOUSTON CHRONICLE’ (USA)

Posted in BANKING SYSTEM - USA, BANKING SYSTEMS, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL MARKETS, FINANCIAL SERVICES INDUSTRIES, HOUSING CRISIS - USA, INDUSTRIES - USA, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, USA | Leave a Comment »

THE ALLURE OF INDEPENDENT CONTRACTORS (USA)

Posted by Gilmour Poincaree on January 25, 2009

Jan. 23, 2009, 11:09PM

by Joyce M. Rosenberg – Associated Press

PUBLISHED BY ‘THE HOUSTON CHRONICLE’ (USA)

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PUBLISHED BY ‘THE HOUSTON CHRONICLE’ (USA)

Posted in CONSTRUCTION INDUSTRIES, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, RECESSION, RESTRUCTURING OF PRIVATE COMPANIES, THE FLOW OF INVESTMENTS, USA | Leave a Comment »

OCEAN BANK SEEKS FORECLOSURE ON TWO MIAMI-DADE DEVELOPERS (USA)

Posted by Gilmour Poincaree on January 24, 2009

Friday, January 23, 2009, 10:29am EST

South Florida Business Journal – by Brian Bandell

PUBLISHED BY ‘THE ATLANTA BUSINESS JOURNAL’ (USA)

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PUBLISHED BY ‘THE ATLANTA BUSINESS JOURNAL’ (USA)

Posted in BANKRUPTCIES - USA, CONSTRUCTION INDUSTRIES, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL MARKETS, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, REAL ESTATE INDUSTRIES, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, THE FLOW OF INVESTMENTS, USA | 2 Comments »

LYNNWOOD SHOPPING CENTER SELLS FOR $15M (USA)

Posted by Gilmour Poincaree on January 24, 2009

Friday, January 23, 2009, 11:34am PST

Puget Sound Business Journal

PUBLISHED BY ‘THE PUGET SOUND BUSINESS JOURNAL’ (USA)

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PUBLISHED BY ‘THE PUGET SOUND BUSINESS JOURNAL’ (USA)

Posted in BANKING SYSTEM - USA, COMMERCE, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL MARKETS, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, REAL ESTATE INDUSTRIES, RECESSION, RESTRUCTURING OF PRIVATE COMPANIES, THE FLOW OF INVESTMENTS, USA | Leave a Comment »

PONZI DREAMERS, SCHEMERS – INVESTMENT MANAGERS WRITING DRAMATIC SCRIPTS (USA)

Posted by Gilmour Poincaree on January 24, 2009

01/21/2009 12:30:00 AM MST

by Al Lewis – Dow Jones Newswires

PUBLISHED BY ‘THE DENVER POST’ (USA)

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PUBLISHED BY ‘THE DENVER POST’ (USA)

Posted in BANKING SYSTEM - USA, BANKING SYSTEMS, BANKRUPTCIES - USA, CRIMINAL ACTIVITIES, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FINANCIAL SCAMS, FINANCIAL SERVICES INDUSTRIES, FRAUD, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, THE FLOW OF INVESTMENTS, THE WORK MARKET, USA | Leave a Comment »

BUILDING OF HOMES PLUNGES TO RECORD LOW – DECEMBER CONSTRUCTION IS THE WEAKEST SINCE RECORD-KEEPING BEGAN IN 1959 – THE PREVIOUS WORST WAS SET IN NOVEMBER (USA)

Posted by Gilmour Poincaree on January 24, 2009

01/23/2009 12:30:00 AM MST

by Jeannine Aversa – The Associated Press

PUBLISHED BY ‘THE DENVER POST’ (USA)

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PUBLISHED BY ‘THE DENVER POST’ (USA)

Posted in BANKING SYSTEM - USA, CONSTRUCTION INDUSTRIES, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL MARKETS, FINANCIAL SERVICES INDUSTRIES, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, RECESSION, THE FLOW OF INVESTMENTS, USA | Leave a Comment »

COASTAL FEDERAL CREDIT UNION TO CLOSE FOUR BRANCHES (USA)

Posted by Gilmour Poincaree on January 24, 2009

Fri, Jan. 23, 2009 10:48AM

by Alan M. Wolf – Staff Writer

PUBLISHED BY ‘THE NEWS&OBSERVER’ (USA)

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PUBLISHED BY ‘THE NEWS&OBSERVER’ (USA)

Posted in BANKING SYSTEM - USA, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL MARKETS, FOREIGN WORK FORCE - LEGAL, HOUSING CRISIS - USA, INDUSTRIES - USA, NATIONAL WORK FORCES, RECESSION, RESTRUCTURING OF PRIVATE COMPANIES, THE FLOW OF INVESTMENTS, THE WORK MARKET, UNEMPLOYMENT, USA | Leave a Comment »

30-YEAR MORTGAGES AGAIN ABOVE 5% (USA)

Posted by Gilmour Poincaree on January 24, 2009

Fri, Jan. 23, 2009 12:30AM

The Associated Press

PUBLISHED BY ‘THE NEWS&OBSERVER’ (USA)

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PUBLISHED BY ‘THE NEWS&OBSERVER’ (USA)

Posted in BANKING SYSTEM - USA, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, REAL ESTATE INDUSTRIES, RECESSION, USA | Leave a Comment »

NewStar stock slides as credit terms tighten (USA)

Posted by Gilmour Poincaree on January 24, 2009

Friday, January 23, 2009, 10:40am EST

Tim McLaughlin

PUBLISHED BY ‘THE BOSTON BUSINESS JOURNAL’ (USA)

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PUBLISHED BY ‘THE BOSTON BUSINESS JOURNAL’ (USA)

Posted in BANKING SYSTEM - USA, BANKRUPTCIES - USA, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL MARKETS, FINANCIAL SERVICES INDUSTRIES, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, STOCK MARKETS, THE FLOW OF INVESTMENTS, USA | Leave a Comment »

OBAMA’S ECONOMIC PLAN MEETS GOP PUSHBACK – PRESIDENT SHOWS BIPARTISANSHIP HAS CLEAR LIMITS; ‘I WON. I TRUMP YOU,’ HE TELLS GOP (USA)

Posted by Gilmour Poincaree on January 24, 2009

Jan. 23, 2009

by Jake Tapper, Rick Klein and Jonathan Karl

PUBLISHED BY ‘ABC NEWS’ (USA)

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PUBLISHED BY ‘ABC NEWS’ (USA)

Posted in AL QAEDA, BANKING SYSTEM - USA, BANKRUPTCIES - USA, BARACK HUSSEIN OBAMA -(DEC. 2008/JAN. 2009), ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FOREIGN POLICIES - USA, FOREIGN WORK FORCE - LEGAL, HEALTH CARE - USA, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, NATIONAL WORK FORCES, PUBLIC SECTOR AND STATE OWNED ENTERPRISES, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF THE PUBLIC SECTOR, THE FLOW OF INVESTMENTS, THE OCCUPATION WAR IN IRAQ, THE PRESIDENCY - USA, THE WORK MARKET, THE WORKERS, USA, WAR IN AFGHANISTAN, WARS AND ARMED CONFLICTS | Leave a Comment »

GE PROFIT DROPS 46 PCT AS FINANCE UNIT STRUGGLES (USA)

Posted by Gilmour Poincaree on January 24, 2009

Fri, Jan. 23, 2009 06:19 AM

by Stephen Manning – Associated Press Business Writer

PUBLISHED BY ‘THE KANSAS CITY STAR’ (USA)

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PUBLISHED BY ‘THE KANSAS CITY STAR’ (USA)

Posted in BANKING SYSTEM - USA, COMMERCE, COMMODITIES MARKET, COMMUNICATION INDUSTRIES, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, ELECTRIC / ELECTRONIC INDUSTRIES, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL SERVICES INDUSTRIES, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, REAL ESTATE INDUSTRIES, RECESSION, STOCK MARKETS, THE FLOW OF INVESTMENTS, USA | Leave a Comment »

KEEPING HOUSES, OWNERS TOGETHER – A NEW JERSEY PROGRAM AIMED AT PREVENTING FORECLOSURES WAS FLOODED WITH CALLS IN ITS FIRST WEEK (USA)

Posted by Gilmour Poincaree on January 23, 2009

Fri, Jan. 23, 2009

by Adrienne Lu – Inquirer Trenton Bureau

PUBLISHED BY ‘PHILADELPHIA DAILY NEWS’ (USA)

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PUBLISHED BY ‘PHILADELPHIA DAILY NEWS’ (USA)

Posted in BANKING SYSTEM - USA, BANKING SYSTEMS, BANKRUPTCIES - USA, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FINANCIAL SERVICES INDUSTRIES, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, REAL ESTATE INDUSTRIES, RECESSION | Leave a Comment »

FORMER STATE SEN. VINCENT J. FUMO (DEMOCRATIC PARTY) LOSES APPEAL OF HIS HOME ASSESSMENT (USA)

Posted by Gilmour Poincaree on January 23, 2009

Fri, Jan. 23, 2009

Joseph Tanfani – Inquirer Staff Writer

PUBLISHED BY ‘PHILADELPHIA DAILY NEWS’ (USA)

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PUBLISHED BY ‘PHILADELPHIA DAILY NEWS’ (USA)

Posted in BANKING SYSTEMS, CORRUPTION, CRIMINAL ACTIVITIES, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL SERVICES INDUSTRIES, FRAUD, HOUSING CRISIS - USA, INDUSTRIES - USA, REAL ESTATE INDUSTRIES, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, USA | Leave a Comment »

HANCOCK OWNER DEFAULTS ON LOAN – 2 LENDERS MIGHT FORECLOSE ON BROADWAY PARTNERS

Posted by Gilmour Poincaree on January 23, 2009

January 23, 2009

by Casey Ross – Globe Staff

PUBLISHED BY ‘THE BOSTON GLOBE’ (USA)

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PUBLISHED BY ‘THE BOSTON GLOBE’ (USA)

Posted in BANKING SYSTEM - USA, BANKING SYSTEMS, BANKRUPTCIES - USA, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, HOUSING CRISIS - USA, RECESSION, USA | Leave a Comment »

WARREN BUFFETT ON OBAMA, STOCKS AND THE ECONOMY

Posted by Gilmour Poincaree on January 23, 2009

January 22, 2009, 2:16 PM

by Jonathan Ratner

PUBLISHED BY ‘THE NATIONAL POST’ (Canada)

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PUBLISHED BY ‘THE NATIONAL POST’ (Canada)

Posted in BANKING SYSTEM - USA, BANKING SYSTEMS, BANKRUPTCIES - USA, CENTRAL BANKS, COMMERCE, COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION, INDUSTRIES, RECESSION, RESTRUCTURING OF PRIVATE COMPANIES, THE FLOW OF INVESTMENTS, USA | Leave a Comment »

OBAMA FIRMA LA ORDEN DE CLAUSURA DE GUANTÁNAMO (USA)

Posted by Gilmour Poincaree on January 22, 2009

22.01.09 – 21:50

Diario Vasco – AGENCIAS – WASHINGTON

PUBLISHED BY ‘DIARIO VASCO’ (Basque Country)

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PUBLISHED BY ‘DIARIO VASCO’ (Basque Country)

Posted in AL QAEDA, BARACK HUSSEIN OBAMA -(DEC. 2008/JAN. 2009), ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FOREIGN POLICIES - USA, HOUSING CRISIS - USA, HUMAN RIGHTS, INTERNATIONAL RELATIONS, PUBLIC SECTOR AND STATE OWNED ENTERPRISES, RECESSION, RESTRUCTURING OF THE PUBLIC SECTOR, THE FLOW OF INVESTMENTS, THE OCCUPATION WAR IN IRAQ, THE PRESIDENCY - USA, USA, WAR IN AFGHANISTAN, WARS AND ARMED CONFLICTS | Leave a Comment »

OBAMA NAMES TWO INDIAN-AMERICANS (NEAL KUMAR KATYAL AND PREETA BANSAL) TO KEY POSTS

Posted by Gilmour Poincaree on January 22, 2009

21 Jan 2009, 0120 hrs IST

IANS

PUBLISHED BY ‘THE ECONOMIC TIMES’ (India)

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PUBLISHED BY ‘THE ECONOMIC TIMES’ (India)

Posted in BANKING SYSTEM - USA, BANKRUPTCIES - USA, BARACK HUSSEIN OBAMA -(DEC. 2008/JAN. 2009), ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, HOUSING CRISIS - USA, RECESSION, RESTRUCTURING OF THE PUBLIC SECTOR, THE PRESIDENCY - USA, USA | Leave a Comment »

PETTERS AGAIN SEEKS RELEASE ON BAIL SO HE CAN PREPARE BETTER FOR TRIAL – PETTERS, 0 FOR 2, MAKES ANOTHER PITCH TO BE RELEASED ON BOND. HIS LAWYERS SAY THERE’S NO EVIDENCE HE MIGHT FLEE THE COUNTRY – INDICTED WAYZATA BUSINESSMAN TOM PETTERS IS ASKING FOR THE THIRD TIME TO BE RELEASED FROM FEDERAL CUSTODY TO PARTICIPATE MORE FULLY IN THE PREPARATION FOR HIS JUNE TRIAL ON CHARGES THAT HE MASTERMINDED A $3.5 BILLION PONZI FRAUD SCHEME (USA)

Posted by Gilmour Poincaree on January 22, 2009

January 20, 2009 – 10:48 PM

by David Phelps – Star Tribune

PUBLISHED BY ‘THE STAR TRIBUNE’ (USA)

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PUBLISHED BY ‘THE STAR TRIBUNE’ (USA)

Posted in BANKING SYSTEM - USA, BANKING SYSTEMS, BANKRUPTCIES - USA, CRIMINAL ACTIVITIES, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FINANCIAL SCAMS, FINANCIAL SERVICES INDUSTRIES, FRAUD, HOUSING CRISIS - USA, INDUSTRIES - USA, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, THE FLOW OF INVESTMENTS, USA | Leave a Comment »

INTEL PLANS UP TO 6,000 JOB CUTS IN FACTORY SHAKEUP; SOME WORKERS TO BE OFFERED OTHER JOBS (USA)

Posted by Gilmour Poincaree on January 22, 2009

January 21, 2009 – 6:51 PM

by Jordan Robertson – Associated Press

PUBLISHED BY ‘THE STAR TRIBUNE’ (USA)

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PUBLISHED BY ‘THE STAR TRIBUNE’ (USA)

Posted in BANKING SYSTEM - USA, COMMERCE, COMMODITIES MARKET, DIGITAL INDUSTRIES, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, ELECTRIC / ELECTRONIC INDUSTRIES, EMPLOYMENT, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FOREIGN WORK FORCE - LEGAL, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, NATIONAL WORK FORCES, RECESSION, RESTRUCTURING OF PRIVATE COMPANIES, THE FLOW OF INVESTMENTS, THE WORK MARKET, THE WORKERS, THE WORKING ENVIRONMENT, UNEMPLOYMENT, USA | Leave a Comment »

PROS SAY: WE’RE ONLY 2/3 DONE FINDING BANK SKELETONS

Posted by Gilmour Poincaree on January 21, 2009

21 Jan 2009 – 08:26 AM ET

CNBC.com

PUBLISHED BY ‘CNBC’ (USA)

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PUBLISHED BY ‘CNBC’ (USA)

Posted in BANKING SYSTEM - USA, BANKING SYSTEMS, BANKRUPTCIES - USA, CENTRAL BANKS, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FINANCIAL SERVICES INDUSTRIES, HOUSING CRISIS - USA, NATIONAL DEBT - USA, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, THE FLOW OF INVESTMENTS, USA | Leave a Comment »

WALL ST. SINKS ON OBAMA INAUGURATION DAY

Posted by Gilmour Poincaree on January 21, 2009

Wednesday, 21 Jan, 2009 – 05:53 AM PST

Agence France-Presse

PUBLISHED BY ‘DAWN’ (Pakistan)

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PUBLISHED BY ‘DAWN’ (Pakistan)

Posted in AL QAEDA, BANKING SYSTEM - USA, BANKRUPTCIES - USA, BARACK HUSSEIN OBAMA -(DEC. 2008/JAN. 2009), ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FINANCIAL SERVICES INDUSTRIES, HEALTH CARE - USA, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, NATIONAL DEBT - USA, RECESSION, STOCK MARKETS, THE FLOW OF INVESTMENTS, THE ISRAELI-PALESTINIAN STRUGGLE, THE OCCUPATION WAR IN IRAQ, THE PRESIDENCY - USA, TRADE DEFICIT - USA, USA, WAR IN AFGHANISTAN, WARS AND ARMED CONFLICTS | Leave a Comment »

OBAMA’S AFGHAN STRATEGY

Posted by Gilmour Poincaree on January 21, 2009

Tuesday, 20 Jan, 2009 – 11:19 AM PST

by Shahid Javed Burki

PUBLISHED BY ‘DAWN’ (Pakistan)

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PUBLISHED BY ‘DAWN’ (Pakistan)

Posted in AFGHANISTAN, BANKING SYSTEM - USA, BANKRUPTCIES - USA, BARACK HUSSEIN OBAMA -(DEC. 2008/JAN. 2009), ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FOREIGN POLICIES - USA, HOUSING CRISIS - USA, INTERNATIONAL, MILITARY CONTRACTS, RECESSION, THE ARMS INDUSTRY, THE FLOW OF INVESTMENTS | Leave a Comment »

DOCTORS AMONG US-BACKED COUP PLOTTERS: IRAN

Posted by Gilmour Poincaree on January 21, 2009

January 20, 2009 Tuesday – Muharram 22, 1430

Agence France-Presse

PUBLISHED BY ‘DAWN’ (Pakistan)

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PUBLISHED BY ‘DAWN’ (Pakistan)

Posted in BANKING SYSTEM - USA, BANKRUPTCIES - USA, CRIMINAL FOREIGN POLICIES, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FOREIGN POLICIES, FOREIGN POLICIES - USA, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, INTERNATIONAL, INTERNATIONAL RELATIONS, IRAN, RECESSION, STATE TERRORISM, THE ARMS INDUSTRY, THE MEDIA (US AND FOREIGN), THE UNITED NATIONS, USA | Leave a Comment »

GAZA AFTERMATH MAY IMPACT ISRAEL OIL PIPE DEVELOPMENT

Posted by Gilmour Poincaree on January 21, 2009

Tuesday, January 20, 2009

by Benoit Faucon – Dow Jones Newswires

PUBLISHED BY ‘RIGZONE’

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PUBLISHED BY ‘RIGZONE’

Posted in BANKING SYSTEM - USA, BANKRUPTCIES - USA, COMMERCE, COMMODITIES MARKET, CRIMINAL ACTIVITIES, CRIMINAL FOREIGN POLICIES, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FOREIGN POLICIES, FOREIGN POLICIES - USA, HATE MONGERING AND BIGOTRY, HOUSING CRISIS - USA, HUMAN RIGHTS, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, INTERNATIONAL, INTERNATIONAL RELATIONS, ISRAEL, MILITARY CONTRACTS, PALESTINE, PETROL, RECESSION, REFINERIES - PETROL/BIOFUELS, STATE TERRORISM, THE ARMS INDUSTRY, THE FLOW OF INVESTMENTS, THE ISRAELI-PALESTINIAN STRUGGLE, THE UNITED NATIONS, USA, WAR CRIMES, WARS AND ARMED CONFLICTS, WEAPONS | Leave a Comment »

CALIFORNIA WOMAN SENTENCED IN REAL ESTATE SCHEME (USA)

Posted by Gilmour Poincaree on January 21, 2009

Jan 20, 2009 7:27 PM

Associated Press

PUBLISHED BY ‘THE EXAMINER’ (USA)

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PUBLISHED BY ‘THE EXAMINER’ (USA)

Posted in BANKING SYSTEM - USA, BANKRUPTCIES - USA, CRIMINAL ACTIVITIES, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FINANCIAL SCAMS, FINANCIAL SERVICES INDUSTRIES, FRAUD, HOUSING CRISIS - USA, INDUSTRIES - USA, REAL ESTATE INDUSTRIES, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, THE FLOW OF INVESTMENTS | Leave a Comment »

THE NUMBERS ARE HORRIFYING (USA)

Posted by Gilmour Poincaree on January 20, 2009

Jan. 26, 2009

Mohamed A. El-Erian

PUBLISHED BY ‘NEWSWEEK’ – print edition -(USA)

NEWSWEEK – Jan. 26, 2009

GLOBAL INVESTOR

By Mohamed A. El-Erian

THE NUMBERS ARE HORRIFYING

On Tuesday, President-elect Barack Obama inherits an economic calamity, and the situation will get worse in the first few months of his presidency regardless of what he does. How quickly it improves thereafter is not just a matter of which policies he decides to pursue; importantly, it is also a function of how he pursues them. Investors need to pay close attention lest they experience yet another challenging and, in some cases, devastating year.

No one should doubt that we are still in the midst of a historic economic crisis. Having incurred massive losses, individuals and companies around the world are, not surprisingly, saving more—some by choice as they attempt to restore balance to their finances and others by necessity as their credit lines are cut by beleaguered lenders. As detailed elsewhere in this edition of NEWSWEEK, the world has entered an Age of Thrift. Less spending by individuals will mean even lower demand, and the production of goods and services will be cut, again.

The latest economic data vividly illustrate the self-fulfilling nature of this global phenomenon. The numbers are horrifying, and increasingly so. There’s been a violent collapse in industrial production in Europe; the latest monthly data now show annual contractions of 17 percent in Spain, 13 percent in the U.K., 9 percent in France and Italy, and 6 percent in Germany. Emerging economies are now on the same course, with contractions of 9 percent in Russia and 4 percent in Brazil.

At the same time, the labor market is deteriorating dramatically in both Europe and America. The United States has now registered 12 consecutive months of job losses, including more than half a million in December, bringing the 2008 total to 2.6 million—a level not seen for more than 60 years. The crisis continues to catch people by surprise, suggesting that too few people sufficiently understand its dynamics. The U.S. Commerce Department reports that December retail sales declined at more than twice the rate expected by most forecasters, and further extended the record for consecutive monthly declines, now six .and counting. President elect Obama faces the prospect of more corporate defaults, pension losses and personal bankruptcies in the coming months. Fortunately, he has already shown that he has a good understanding of the need for an aggressive fiscal stimulus, and Congress seems to be onboard.

Without massive public stimulus, there is little chance of countering the highly disruptive consequences of a too sudden and too prolonged ascent of the Age of Thrift.

Yet there is a risk that this consensus could break down in quibbling over the details. Specifically, we should stop the bickering over whether to cut taxes or raise spending. Both are required. The tax cuts should work mainly through employment channels, including a cut in the payroll tax as this will directly help employment and limit the fall in consumption. Government spending should focus on sectors that will quickly raise resource productivity, like infrastructure, which helps lower production costs, and social services, which raise human productivity overtime.

Obama also needs to step up efforts to alleviate the credit crunch. This is not about an immediate recovery in the banking system. It won’t happen. The sector is too damaged to act as a conduit of funds to the general economy. Instead, the government must come up with more imaginative ways to provide direct financing, particularly for mortgages and some areas of consumer finance.

Obama’s economic appointments suggest that he understands how important it will be to get the design and implementation of these policies right. The highly capable Larry Summers and Tim Geithner should focus on coming up with a master plan to lead the country out of the crisis. This will ensure that the immediate measures implemented are consistent over time with a resumption of economic growth and rising productivity.

Managing expectations is also more important than ever. In his remarks on the financial crisis in November and December, Obama came across as informed, committed and careful not to over-promise. Yet his efforts have been largely negated by recent talk out of Washington of regulatory clampdowns, potential abrogation of property rights and other non-market solutions. The president-elect will have to step up quickly to the challenge of consistently better communication if he is to instill the confidence that is critical for a meaningful economic turn later this year.

Finally, Obama should signal clearly that he knows a global dislocation requires a global response. What was a U.S. financial crisis has morphed into a challenge to the international market system. An effective solution will not materialize unless the United States takes a policy leadership role on the global stage. It’s a role no other country can credibly play. With Obama as president, the world is exceptionally welcoming to U.S. leadership. He must seize this opportunity for the economic good of America, and the world.

ELERIAN is CEO and co-CIO of PIMCO and author of “When Markets Collide: Investment Strategies for the Age of Global Economic Change,” winner of the 2008 FT/Goldman Sachs business book of the year award.

PUBLISHED BY ‘NEWSWEEK’ – print edition -(USA)

Posted in AGRICULTURE, BANKING SYSTEM - USA, BANKRUPTCIES - USA, BARACK HUSSEIN OBAMA -(DEC. 2008/JAN. 2009), CENTRAL BANKS, COMMERCE, COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FARMING SUBSIDIES, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FOREIGN POLICIES - USA, HEALTH CARE - USA, HOUSING CRISIS - USA, HUMAN RIGHTS, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, INTERNATIONAL RELATIONS, MACROECONOMY, NATIONAL DEBT - USA, PUBLIC SECTOR AND STATE OWNED ENTERPRISES, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, RESTRUCTURING OF THE PUBLIC SECTOR, STATE TARIFFS, THE FLOW OF INVESTMENTS, THE ISRAELI-PALESTINIAN STRUGGLE, THE OCCUPATION WAR IN IRAQ, THE PRESIDENCY - USA, TRADE DEFICIT - USA, UNEMPLOYMENT, USA, WAR IN AFGHANISTAN, WARS AND ARMED CONFLICTS | Leave a Comment »

TWIN CITIES COMMERCIAL REAL ESTATE MARKET DIPS INTO A DECLINE – A YEAR-END REPORT BY NORTHMARQ SHOWED A GROWING OVERALL TWIN CITIES VACANCY RATE – AND NOT BECAUSE OF NEW BUILDINGS (USA)

Posted by Gilmour Poincaree on January 20, 2009

January 19, 2009 – 8:49 PM

by Susan Feyder – Star Tribune

PUBLISHED BY ‘THE STAR TRIBUNE’ (USA)

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PUBLISHED BY ‘THE STAR TRIBUNE’ (USA)

Posted in BANKING SYSTEM - USA, BANKING SYSTEMS, BANKRUPTCIES - USA, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FINANCIAL SERVICES INDUSTRIES, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, REAL ESTATE INDUSTRIES, RECESSION, RESTRUCTURING OF PRIVATE COMPANIES, USA | Leave a Comment »

A FABLE IN THE FOLLY – AS A LEADER SEEKS TO BECOME A LEGEND – AS A CARD-CARRYING MEMBER OF THE VAST RIGHT-WING CONSPIRACY, I HAVE A SPECIAL INAUGURATION DAY MESSAGE FOR MY FELLOW CONSERVATIVES: SHUT UP

Posted by Gilmour Poincaree on January 20, 2009

Tuesday, January 20, 2009

by Michael Graham

PUBLISHED BY ‘THE BOSTON HERALD’ (USA)

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PUBLISHED BY ‘THE BOSTON HERALD’ (USA)

Posted in BANKING SYSTEM - USA, BANKRUPTCIES - USA, BARACK HUSSEIN OBAMA -(DEC. 2008/JAN. 2009), CENTRAL BANKS, COMMERCE, COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FOREIGN POLICIES - USA, HEALTH CARE - USA, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, MACROECONOMY, NATIONAL DEBT - USA, PUBLIC SECTOR AND STATE OWNED ENTERPRISES, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, RESTRUCTURING OF THE PUBLIC SECTOR, STATE TARIFFS, THE FLOW OF INVESTMENTS, THE PRESIDENCY - USA, THE WORK MARKET, TRADE DEFICIT - USA, UNEMPLOYMENT, USA, USA HUMOR | Leave a Comment »

THE ONE WHO SAW IT COMING – ROBERT SHILLER FORECAST THE CREDIT CRISIS FOR THE RIGHT REASONS, AND HAS A NOVEL IDEA FOR HOW TO FIX IT

Posted by Gilmour Poincaree on January 19, 2009

19/01/2009

by Zachary Karabell

PUBLISHED BY ‘NEWSWEEK’ (print edition)

Robert Shiller is one of a handful of economists who have been feted for foreseeing the credit crisis, but he is the only ROBERT SHILLER (Rick Friedman - Corbis)one who predicted it for the right reasons. New York University’s Nouriel Roubini, now known as “Dr. Doom,” warned as early as 2006 of an imminent housing crash that would stop America’s consumer-spending spree and lead to severe recession. Another iiber-bear, Morgan Stanley’s Stephen Roach, had warned for years that the weakening dollar and the U.S. trade deficit with China were signs of a dangerously unbalanced global economy, doomed to fall. While both deserve credit for highlighting weaknesses that others ignored, neither had much to say about the real reasons for the current state of affairs, namely the vast amount of speculation that took place in the financial world linked to home mortgages.

Shiller did. Long before the extent of the subprime-mortgage crisis was evident, Shiller predicted that home prices would fall more rapidly than any models had predicted and that financial markets globally would be upended as a result A specialist in the management of risk, he recognized that the real-estate bubble in the United States and parts of Europe represented, above all, a failure to manage risk. Now Shiller, a Yale professor who first made his name by accurately forecasting the stock-market collapse of 2001, is alone again, this time in his prescription for what needs to be done to stabilize credit markets in the future.

Most experts will tell you that Barack Obama needs to move quickly to contain the multitrillion-dollar market that turned low-quality mortgages into high-priced derivatives, the Wall Street innovation now widely blamed for the credit crisis. Shiller says -the opposite. He argues that unless the central issue of risk is addressed, all the money that governments are pouring into financial rescues won’t prevent another, potentiaDy worse financial crisis down the line. In Shiller’s view, derivatives “are a risk management tool much the same way insurance is. You pay a premium and if an event happens, you get a payment.” His radical answer to our problems is that trying to leash financial innovation is hopeless, and that we should instead push forward into a brave new world where derivatives become as common as cash.

What separates Shiller from the majority of economists is his lack of faith in the “efficient-market hypothesis.” That belief, which also guides die hand of most money managers, holds that the market will price assets according to their fundamental value and that those prices reflect all pertinent information. Shiller instead follows those, like John Kenneth Galbraith, who hold that market prices reflect “animal spirits” and popular passions, not perfect information.

That is why bubbles form, and that, for Shiller, is why financial innovation and government regulation are imperative. Pressure has been building in Washington to crack down on the complex derivatives that were structured on toxic mortgages, especially given the scale of global capital flows and trillions of transactions facilitated by computer models and electronic communications. Barney Frank, the powerful chairman of the House Financial Services Committee, has talked of finding ways to force financial companies to become more risk-averse. Similar measures are being considered in Europe and Asia.

The reaction is understandable. Each financial crisis results in a backlash against what caused it. The Securities and Exchange Commission was established in 1934 after the perceived excesses of markets in the 1920s, and the Sarbanes-Oxley Act was passed in 2002 after the spectacular frauds of Enron and WorldCom. While he is in general support of more regulation, Shiller is convinced that the move to restrict derivative’s and risk is misguided. In “The Subprime Solution,” which he wrote just as the system was beginning to implode, he says that what is needed now is the next stage of financial innovation, not constriction. “Risk management is not the prevention of risky behavior,” he told me. “It is carrying it through to its logical end in order to actually make it happen.”

He also sees government intervention as vital to channel animal spirits and innovation. And where innovation is most needed now is in real estate and for the individual homeowner.

For all the trillions in derivative trading, there were very few traders. Almost all the subprime mortgages that were bundled and turned into derivatives were sold by a handful of Wall Street Institutions, working with a small number of large institutional buyers, ranging from the Bank of China to HSBC to sovereign wealth funds. And as we now know, these derivatives were black boxes whose contents were known by neither the sellers nor the buyers. It was a huge but illiquid and opaque market.

Meanwhile, the system was built on the myriad decisions of individual homeowners arid lenders around the world. None of them, however, could hedge their bets the way large institutions can. Those buying a condo in Miami or Marbella had to believe that the market was going up, and had no way to protect themselves if the market went down. When it did, millions were left with homes they could not sell, even for less than they paid.

The solution, says Shiller, is to use derivatives to allow home-owners — and, by extension, lenders — to insure themselves against falling prices. In the United States alone, housing is a $20 trillion market, in there are few ways to unlock profit when the market falls. But for stocks, because of the use of derivatives and options, money can be made when markets fall, which significantly increases the potential number of buyers and sellers at any given point. And more buyers and sellers—according not just to Shiller but to most finance scholars and traders means that markets stay liquid and functional even under pressure.

Shiller has been exploring ways to create homeowner insurance against falling prices for nearly 20 years, and most of the papers he has written on the subject are written for other academics. Even his recent “Derivates Markets for Home Prices,” a working paper published last March at Yale, is more jargon-filled than most laypeople could handle. While he has been both adept at sounding his warnings about bubbles and fortunate in his timing (he published a book, “Irrational Exuberance,” on a bursting stock-market bubble just as the burst arrived in March 2000, and another on the subprime meltdown just as the meltdown went global), his call for derivatives as homeowner insurance have not received nearly as much attention.

It’s not as if he hasn’t tried to put his money where his mouth is. With business partners he created a ‘home-price index, the Case-Shiller Index, which in turn can be traded on the Chicago Mercantile Exchange. But that is limited mostly to gamblers and speculators who want to take bets on whether the index and underlying average home prices are going to go up or down. That is a far cry from someone buying a home in a suburb of Las Vegas or Phoenix being able to use some sort of financial instrument to hedge himself against home-price declines. As Shiller freely admits, it’s a long way from where we are to where he thinks we ought to be.

Though he’s acutely aware of how rarely academics get the real world right, Shiller’s critics accuse him of much the same thing. Several traders I know dismissed Shiller’s basic premise that more derivatives would make the housing market more liquid and more stable. They point out that futures contracts haven’t made equity markets or commodity markets any less immune from massive moves up and down, and may have made such moves steeper, sharper and more rapid. They also scoff that Shiller, his experience with the Chicago Mercantile Exchange notwithstanding, has never had to manage a portfolio or a trader’s book, and that a ballooning world of home-based derivatives wouldn’t lead to homeowners’ insurance: it would lead to a new playground for speculators. To the contrary, says Shiller, by enabling people to hedge against price declines, “derivatives could make it more difficult for bubbles to form.”

Given that these ideas are untested in the real world,, it’s impossible to know who’s right. But Shiller’s radical ideas have a parallel in the thinking of the influential Peruvian-born economist Hernando de Soto. De Soto’s pathbreaking observation was that the Western world began to out-strip the rest of the world when its legal and banking systems allowed people to turn land into cash. The contemporary system of using property as collateral for loans is the result, and it has given the Western world a huge advantage.

In many ways, Shiller is saying that too much potential wealth is still locked up in land and real estate. Because the owner of a property can sell that property easily only when conditions are good, the asset is risky and illiquid, and there is no way to offset those problems. Expanding the world of derivatives and giving homeown-ers the ability to “short” their own property could potentially make real estate as easy to buy, sell and hedge as stocks, bonds and some commodities are now. The effects, predicts Shiller, would be to unleash much more potential wealth while simultaneously decreasing the systemic risks.

In essence, Shiller is laying the intellectual groundwork for the next financial revolution. We are now suffering through the first major crisis of the Information Age economy. Shiller’s answers may be counterintuitive, but no more so than those of doctors and scientists who centuries ago recognized that the cure for infectious diseases was not flighf or quarantine but purposely infecting more people through vaccinations. “We’ve had a major glitch in derivatives and securitization,” says Shiller. “The Titanic sank almost a century ago, but we didn’t stop sailing across the Atlantic.”

Of course, people did think twice about getting on a ship, but if we listen to those fears, we lose the very dynamism that has propelled us this far. That is the nub of Shiller’s call for more derivatives and more innovation. Every major crisis in capitalism is met by calls to return to an earlier, mythic time when life was more secure and things were better. For a time, animal spirits may be tempered, but rarely for longer than the average New Year’s resolution. The challenge is to find a way to prevent them froni running wild when they inevitably return. Shiller’s call for more derivatives is a tough sell at a time when they’ve produced so much havoc. But he reminds us that the tools that got us here are not to blame; they can be used badly and they can be used well. And trying to stem the ineffable tide of human creativity is a fool’s errand.

Karabell is president of River Twice Research.

PUBLISHED BY ‘NEWSWEEK’ (print edition)

Posted in BANKING SYSTEM - USA, BANKING SYSTEMS, BANKRUPTCIES - USA, CENTRAL BANKS, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, THE FLOW OF INVESTMENTS, USA | Leave a Comment »

5 QUESTIONS WITH JOHN H. GENOVESE – LAWYER: ENRON LESSONS WEREN’T LEARNED – ATTORNEY JOHN H. GENOVESE, WHO WON JUDGMENT FOR FRAUD IN THE LARGEST CLASS ACTION RECOVERY EVER, SAYS THAT THE PROBLEMS WITH DEREGULATION JUST MOVE FROM INDUSTRY TO INDUSTRY

Posted by Gilmour Poincaree on January 19, 2009

Monday, 01.19.09

by Lazaro Fraga

PUBLISHED BY ‘THE MIAMI HERALD’ (USA)

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PUBLISHED BY ‘THE MIAMI HERALD’ (USA)

Posted in BANKING SYSTEM - USA, BANKRUPTCIES - USA, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, MACROECONOMY, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, USA | Leave a Comment »

THE NEW DEAL WASN’T BUILT IN A DAY (USA)

Posted by Gilmour Poincaree on January 19, 2009

January 19, 2009

by Philip Warburg

PUBLISHED BY ‘THE BOSTON GLOBE’

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Posted in BANKING SYSTEM - USA, BANKING SYSTEMS, BANKRUPTCIES - USA, COMMERCE, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, HISTORY, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, MACROECONOMY, RECESSION, RESTRUCTURING OF PRIVATE COMPANIES, RESTRUCTURING OF THE PUBLIC SECTOR, THE FLOW OF INVESTMENTS, USA | Leave a Comment »

FBI HUNT FOR MISSING BROKER (ARTHUR NADEL, 75) AND $516M

Posted by Gilmour Poincaree on January 19, 2009

January 19, 2009

by Mike Harvey and Chistine Seib – Times Online

PUBLISHED BY ‘THE AUSTRALIAN’

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Posted in BANKING SYSTEM - USA, BANKING SYSTEMS, BANKRUPTCIES - USA, CRIMINAL ACTIVITIES, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FINANCIAL SCAMS, FINANCIAL SERVICES INDUSTRIES, FRAUD, HOUSING CRISIS - USA, JUDICIARY SYSTEMS, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, THE FLOW OF INVESTMENTS, USA | 1 Comment »

U.K. SMARTER THAN U.S.

Posted by Gilmour Poincaree on January 19, 2009

January 18, 3:50 PM

by Scott R. Gingold – Business News Examiner

PUBLISHED BY ‘THE EXAMINER’ (USA)

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Posted in BANKING SYSTEM - USA, BANKING SYSTEMS, BANKRUPTCIES - USA, BARACK HUSSEIN OBAMA -(DEC. 2008/JAN. 2009), CENTRAL BANKS, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FINANCIAL SERVICES INDUSTRIES, HOUSING CRISIS - USA, INTERNATIONAL, PUBLIC SECTOR AND STATE OWNED ENTERPRISES, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, RESTRUCTURING OF THE PUBLIC SECTOR, THE FLOW OF INVESTMENTS, THE PRESIDENCY - USA, UNITED KINGDOM, USA | Leave a Comment »

MARKET DROP HAS RANCHERS FEELING DOWN (USA)

Posted by Gilmour Poincaree on January 19, 2009

Jan 17, 2009 4:00 AM

Joanne Kelley – Associated Press

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Posted in AGRICULTURE, BANKING SYSTEM - USA, BANKING SYSTEMS, BANKRUPTCIES - USA, BARACK HUSSEIN OBAMA -(DEC. 2008/JAN. 2009), COMMERCE, COMMODITIES MARKET, DOLLAR (USA), ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FARMING DEBTS, FARMING SUBSIDIES, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FINANCIAL SERVICES INDUSTRIES, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION, INDUSTRIAL PRODUCTION - USA, INDUSTRIES, INDUSTRIES - USA, RECESSION, RESTRUCTURING OF PRIVATE COMPANIES, THE FLOW OF INVESTMENTS, THE LAST DAYS OF GEORGE WALKER BUSH - 2008/Jan. 2009, THE PRESIDENCY - USA, USA | Leave a Comment »

ISSUES CANNOT BE RESOLVED IMMEDIATELY: OBAMA (USA)

Posted by Gilmour Poincaree on January 19, 2009

0600 PST, Monday, January 19, 2009

The International News

PUBLISHED BY ‘THE INTERNATIONAL NEWS’ (Pakistan)

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Posted in BANKING SYSTEM - USA, BANKRUPTCIES - USA, BARACK HUSSEIN OBAMA -(DEC. 2008/JAN. 2009), CENTRAL BANKS, COMMERCE, COMMODITIES MARKET, CRIMINAL FOREIGN POLICIES, DOLLAR (USA), ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, ENVIRONMENT, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FINANCIAL SCAMS, FOREIGN POLICIES - USA, FRAUD, HATE MONGERING AND BIGOTRY, HEALTH CARE - USA, HOUSING CRISIS - USA, HUMAN RIGHTS, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, INTERNATIONAL RELATIONS, MACROECONOMY, NATIONAL DEBT - USA, PENSION FUNDS, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF THE PUBLIC SECTOR, STATE TERRORISM, THE FLOW OF INVESTMENTS, THE ISRAELI-PALESTINIAN STRUGGLE, THE OCCUPATION WAR IN IRAQ, THE PRESIDENCY - USA, THE WORK MARKET, THE WORKERS, TRADE DEFICIT - USA, UNEMPLOYMENT, USA, WAR CRIMES, WAR IN AFGHANISTAN, WARS AND ARMED CONFLICTS | Leave a Comment »

REPUBLICANS BEND RULES TO MAKE SURE OTHERS CAN’T – SEEN BIG FOOT LATELY? THEN YOU’VE PROBABLY SEEN AN UNDOCUMENTED WORKER USING A FAKE ID TO VOTE (USA)

Posted by Gilmour Poincaree on January 18, 2009

Sunday, January 18, 2009

by John Kelso – American-Statesman Staff

PUBLISHED BY ‘THE AUSTIN AMERICAN-STATESMAN’ (USA)

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PUBLISHED BY ‘THE AUSTIN AMERICAN-STATESMAN’ (USA)

Posted in BANKING SYSTEM - USA, BANKRUPTCIES - USA, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, NATIONAL DEBT - USA, PUBLIC SECTOR AND STATE OWNED ENTERPRISES, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF THE PUBLIC SECTOR, STATE TARIFFS, THE LAST DAYS OF GEORGE WALKER BUSH - 2008/Jan. 2009, TRADE DEFICIT - USA, USA, USA HUMOR | Leave a Comment »

FORTUNES SOUR FOR BANK GIANTS – BOFA, CITIGROUP ANNOUNCE BILLIONS IN 4TH QUARTER LOSSES (USA)

Posted by Gilmour Poincaree on January 18, 2009

Sat, Jan. 17, 2009 – 12:30AM

by Stevenson Jacobs – The Associated Press

PUBLISHED BY ‘THE NEWS&OBSERVER’ (USA)

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Posted in BANKING SYSTEM - USA, BANKRUPTCIES - USA, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FINANCIAL SERVICES INDUSTRIES, HOUSING CRISIS - USA, INDUSTRIES - USA, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, STOCK MARKETS, THE FLOW OF INVESTMENTS, THE LAST DAYS OF GEORGE WALKER BUSH - 2008/Jan. 2009, USA | Leave a Comment »

SPLITSVILLE – BELEAGUERED GIANT CITIGROUP WILL DIVIDE ITSELF AND BANK OF AMERICA RECORDS A $2.39 BILLION Q4 LOSS AS ECONOMIC ONSLAUGHT CONTINUES (USA)

Posted by Gilmour Poincaree on January 18, 2009

January 17, 2009

by Stevenson Jacobs

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Posted in BANKING SYSTEM - USA, BANKRUPTCIES - USA, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FINANCIAL SERVICES INDUSTRIES, HOUSING CRISIS - USA, INDUSTRIES - USA, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, STOCK MARKETS, THE FLOW OF INVESTMENTS, THE LAST DAYS OF GEORGE WALKER BUSH - 2008/Jan. 2009, USA | Leave a Comment »

BANK HORROR SHOW: THE SEQUEL – RETURN TO BAILOUT TROUGH PUTS SHAREHOLDER STAKES AT RISK (USA)

Posted by Gilmour Poincaree on January 18, 2009

January 17, 2009

by David Roeder – Sun-Times Columnist

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Posted in BANKING SYSTEM - USA, CENTRAL BANKS, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FINANCIAL SERVICES INDUSTRIES, HOUSING CRISIS - USA, INDUSTRIES - USA, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, STOCK MARKETS, THE FLOW OF INVESTMENTS, THE LAST DAYS OF GEORGE WALKER BUSH - 2008/Jan. 2009, USA | 1 Comment »

FEDERAL REGULATORS CLOSE SMALL BANK IN ILLINOIS (USA)

Posted by Gilmour Poincaree on January 18, 2009

January 17, 2009

Associated Press

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Posted in BANKING SYSTEM - USA, BANKRUPTCIES - USA, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FINANCIAL SERVICES INDUSTRIES, FOREIGN WORK FORCE - LEGAL, HOUSING CRISIS - USA, INDUSTRIES - USA, NATIONAL WORK FORCES, PUBLIC SECTOR AND STATE OWNED ENTERPRISES, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, THE LAST DAYS OF GEORGE WALKER BUSH - 2008/Jan. 2009, THE WORK MARKET, UNEMPLOYMENT, USA | Leave a Comment »

FRESH EVIDENCE OF ISRAELI PHOSPHORUS USE IN GAZA EMERGES

Posted by Gilmour Poincaree on January 17, 2009

Saturday 17 January 2009 00.18 GMT

by Richard Norton-Taylor

PUBLISHED BY ‘THE GUARDIAN’ (UK)

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PUBLISHED BY ‘THE GUARDIAN’ (UK)

Posted in BANKING SYSTEM - USA, CHEMICALS (processed components), COMMERCE, COMMODITIES MARKET, CRIMINAL ACTIVITIES, CRIMINAL FOREIGN POLICIES, ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FOREIGN POLICIES, FOREIGN POLICIES - USA, HATE MONGERING AND BIGOTRY, HOUSING CRISIS - USA, HUMAN RIGHTS, INDUSTRIAL PRODUCTION, INDUSTRIAL PRODUCTION - USA, INDUSTRIES, INDUSTRIES - USA, INTERNATIONAL, INTERNATIONAL RELATIONS, ISRAEL, MILITARY CONTRACTS, PALESTINE, RECESSION, STATE TERRORISM, THE ARMS INDUSTRY, THE FLOW OF INVESTMENTS, THE ISRAELI-PALESTINIAN STRUGGLE, THE LAST DAYS OF GEORGE WALKER BUSH - 2008/Jan. 2009, THE UNITED NATIONS, USA, WAR CRIMES, WARS AND ARMED CONFLICTS, WEAPONS | Leave a Comment »