dimelab: bank Topic in The Credit Debacle Catalog at Feed-Adept

bank Topic in The Credit Debacle Catalog

000 banks go (1); 1 Bank (1); 1 risk rated bank (1); 10th-largest bank failure (1); 2007-09 banking crisis floats (1); 2008 banking crisis (1); 3 trillion asset bank appendage (1); aggregator bank (1); aggressively exposing bank transgressions (1); AIG Facilitated European Banks Circumventing Minimum Capital Requirements (1); Albert Edwards Alleges Central Banks (1); allowing banks (2); America s Bank (2); America's banking bailout (1); America's banking system (1); America's Teetering Banking System (2); Anglo-American banking practice (1); Asian banks collapsed (1); Asian Central Banks (1); Asian Development Bank excludes International Monetary Fund (1); Australia Citicorp Investment Bank Merrill Lynch (1); Austrian bank (2); Bad Bank Assets (3); Bad Bank Assets Proposal (1); Bad Bank Proposal (2); bad banks (8); Bad CRE Loans threaten Regional Banks (1); Bailout Insolvent Banks (1); Bangladesh bank offers loans (1); bank account (3); Bank Bailout (10); bank bailouts fatten Wall Street (1); bank balance sheets (16); Bank basis (1); bank bondholders (1); bank bonds (1); Bank bosses hoped (1); bank CEO (1); bank committed fraud (1); bank conduits (1); bank control (3); Bank Credit (7); bank credit expands (1); Bank Credit Growth Drops Precipitously (2); bank crises (4); bank deal (1); bank decided (1); Bank earnings (4); Bank Earnings 101 (1); Bank Earnings Post Mortem (1); bank exec (1); bank Executive (3); bank executives crafted (1); bank failures (6); Bank Failures Numbers 18 (1); Bank friendly (1); Bank Giveth (1); Bank going (3); Bank Hapoalim MBS Portfolio Says Prevailing Valuations (1); bank Hoist (2); bank hold companies (1); bank implode (2); Bank insider (2); Bank insolvency (5); Bank keep (2); bank lending (16); Bank Lending Channel (1); Bank Lending Numbers (1); bank loan supply (1); bank managements (3); Bank massive (1); bank National (2); bank owner (2); Bank Places (1); Bank Plan Destined (1); Bank problem listings (1); bank properly (2); Bank Recapitalization (2); bank refusal (1); bank regulations (7); bank regulator William (2); bank reintermediation (1); Bank rescue Plans (3); bank rescue program (1); Bank rescued (5); Bank Reserve (5); Bank run (6); bank s (13); Bank s failure (1); Bank Safety (1); Bank Shot (2); bank skimped (1); Bank Speech Fees (1); bank stock (1); Bank Stress Index (2); Bank Stress Rises 7 (2); Bank Stress Test Dance (1); Bank Stress Tests (4); Bank Stress Tests Producing Expected Results (1); bank system long (2); Bank Underwriting Gone Sour (1); Bank using (5); bank violated (1); Bank Woes (2); Bank Write (1); bank's balance sheet (1); bank's capital (1); bank's currency chief (1); bank's largest clients (2); bank's noncurrent loans increase (1); bank's outstanding commercial loans collectively exceed (1); Bank-Broker Market (1); banking becomes counter-productive (1); banking category (1); banking collapse (11); banking comes (1); Banking Crises Contradicts Bailout Bill Premise (1); banking crisis (24); banking crisis created (1); Banking crisis response (4); banking crisis response model (1); Banking deposits (3); banking deregulation (1); banking empire (1); banking engage (1); banking experts (1); Banking Fortunes (2); banking fraud (2); Banking industry (11); banking industry commentators (1); banking industry falsely depicts markets (1); banking industry shrinks defensively (1); banking meltdown (1); Banking Officialdom (1); Banking Regulation Result (2); Banking Regulatory authorities (1); banking sector (7); banking sector crisis (1); banking sector deals (1); Banking Stress (8); Banking Supervision (1); banking system actually operates (1); Banking System Collapse (1); banking system malady (1); banking system warehouse (1); banking systems (72); banking systems ability (1); banking systems centered (1); banking systems finally implode (1); Banks Abandon Paulson's Super-SIV Plan (1); banks assets (7); banks began (1); Banks cherry picking individual foreclosures (1); banks collecting 1 (1); banks continuing (2); Banks creating (2); banks failed (2); Banks Freezing HELOCs (1); banks globally (1); banks going busted (1); Banks hit (1); Banks Hoard (4); Banks Hoard Cash (2); Banks Hoard Oil (2); Banks Ignoring Risk Warnings (1); Banks immediately (1); banks Increasingly (1); banks keep pretty (1); banks keep using (1); banks lead (5); banks losses (2); Banks mess (2); banks need (9); banks need reserves (1); banks operates (5); banks pay (1); banks precedes creation (1); Banks promoted (1); Banks Protected (1); Banks Recover (1); banks restricted lending terms (1); Banks Rigging States Came (1); Banks ruling (3); Banks Shrink (1); Banks Sinking Faster (1); banks stalling (1); Banks take (2); Banks Take Bigger (1); Banks Taking Big Losses (1); banks touted auction rate securities (1); Banks Use Cash Infusion (1); Banks Walking Away (1); barely regulated banks (1); battling banking titans (1); become bank (2); Beijing's derivative default stance rattles banks (1); beleaguered Wall Street bank hired Craig (1); Bernanke Hints Banks (1); big bank earnings (1); Big Bank Endgames (1); big bank losses (1); big bank pre-privatization (1); big banks (33); big banks need (1); Big Banks Repay Bailout Money (1); big investment banks (1); big troubled banks (1); big Wall Street banks (1); biggest bank run (1); Biggest Banking Blunder (1); biggest banking crisis (1); biggest banks (6); British banks (2); British Banks Deemed (1); building excess bank reserves (1); bullion bank (4); Bullion Bank Gold Vault (1); bullion bank vault (1); BULLY BANKS (1); Buy Treasuries/Bad Bank Assets (1); called national banks (1); capitalized banks (2); Capitalized Banks Direct Result (1); CDS dealers banks orchestrated (1); central bank (93); Central Bank Balance sheet (2); central bank balance sheet management (1); central bank deposits (1); Central Bank Follies (1); Central bank independence (3); Central Bank Liquidity Injections Made Crises Worse (1); central Bank Policy (1); central bank shenanagins (1); central bank shovels money (1); Central Bank Using Wrong Playbook (1); central bank's mission creep (1); Central banks action (3); Central Banks Diversifying (1); central banks explains spiking commodity prices (1); central banks flood (1); central banks focus solely (1); Central Banks lead (4); Central Banks Making Libor WORSE (1); central banks operate (1); Central banks ready (1); Central banks snubbing (1); Central Banks Supporting Gold Price (1); central-bank control (1); charges bank (1); China's banks (1); China's central bank (1); Chinese bank lending (5); Chinese banking system (1); Chinese banks (6); Chinese Central Bank (4); Chinese central bank assets (1); Chinese central bank head Zhou's call (1); CIA World data bank (1); Citicorp Investment banks (2); clear banks (2); clearing-bank collateral (1); Collar Effectively Nationalized Banks (1); commercial banking gambling (1); commercial banking operations (1); commercial banking system (2); commercial banks (12); Commonwealth Bank (6); Commonwealth Bank issued (1); Commonwealth Bank model (1); Compelling Banks (1); competing banking giants (1); Competing Wall Street Banks (1); conquering investment bank (1); consultant advising banks (2); Coordinated Central Bank Action (2); Coordinated Central Bank Action Fails (1); created zombie banks (1); credit private bank accounts (1); current banking system claim (1); Dangerous Banks (1); Danish banking Crisis (1); Dealer banks (2); defending fractional reserve banking (1); deflationary bank writeoffs (1); Deregulate Banks (2); despise fractional reserve banking (1); Deutsche Bank (10); Deutsche Bank FC Problems (1); Deutsche Bank foreclosure dismissed (3); Deutsche Bank staff (1); Deutsche Bank's (2); Deutsche Bank's Invoice (1); disastrous bank collapses (1); distressed banking (1); Dodd really support big banks (1); downsizing banks (1); elude key banking rule (2); emergency market Central Banks (1); Emerging Markets Banks Hoist (1); encouraged banks (1); ENRON BANKING SYSTEM (1); entire banking (3); Entire Banking Sector (1); entire banking system (2); entire shadow banking system (1); estimating projected foreclosures versus banking writedowns (1); EU banking rules (1); Euro Bank Woes Take (1); European Banking (6); European banking system (1); European Banks Face Devastating Exposure (2); European Central Bank (3); ex-banking regulator William K. Black calls fraud (1); failed bank (8); failed bank Kaupthing (1); failed Icelandic banks (1); failed investment bank (1); fake banking system (1); family-controlled Illinois banks (1); favored large banks (1); FDIC Quarterly Banking Profile (2); FDIC-insured commercial banks (1); Fed force big banks (1); Fed's Bull Dudley Explains Bank Runs (1); Fed's Fisher Says Bank Rescue Plan (1); Federal bank overseers (1); Federal Home Loan Bank (4); Federal Home Loan Bank Bailout (1); Federal Home Loan Bank system (1); Federal Home Loan Banks Standing (1); Federal Reserve Bank (14); federally insured bank deposits (1); fiat banking (2); Fiat banking way (1); Florida Banks Destroyed Notes (1); forced banks (3); Foreign banks (5); foreign central banks (8); foreign central banks added Treasuries (1); foreign central banks continue (1); Foreign central banks seek safety (2); fractional reserve banking (8); fractional reserve banking suggests (1); fresh banking system (1); Fund Investment Banking Operations (2); German banks (1); giant bank (3); giant New York money-centered banks (1); Global bank reserves amount (1); global banking (6); global banking system (2); global banks courtesy (1); global central bank (2); Global Central Banks Join (1); global companies need massive banks (1); global shadow banking system's holdings (1); Gold Bank (1); good bank/bad bank resolution (1); good-bank-bad-bank (2); government Banking (2); government owned banks (1); Grameen Bank microfinance venture (1); greater central bank authority (1); Grim FDIC Quarterly Banking Profile (1); Guaranty Bank (1); Haunting Banks (1); Help Recapitalize Banks Saddled (1); high powered bank lending (1); high street bank Barclays failed (1); Hometown bank turned predatory (1); Hypo Bank (1); Iceland Voters Reject Bank Bailouts (1); Icelandic banks (3); induce banks (1); infrastructure banks (1); insolvent banks (5); Instead banks lobbied (1); Investigating Icelandic banking collapse (1); Investment bank Lehman Brothers (1); investment bank used (1); investment banks (33); investment banks act (1); Investment Banks Hoist (1); investment banks properly regulate (1); Investment Banks Sold Auction Rate Securities (1); Ireland's bank bailout exercise (1); Irish Bank (4); Italy Seizes Bank (1); Japanese banking cartel (1); Japanese Central Banks (1); joint sovereign/bank debt overhang (1); JP Morgan Private Bank Barry Diller insider trading (1); JP Morgan Private Bank insider trading (1); JP Morgan Private Banking (2); just destroyed international banking (1); Landmark National Bank (2); Landmark National Bank brought (1); large bank peer group (1); large banks (4); Large Canadian Bank (1); large global banks providing false information (1); large zombie banks (1); larger Wall Street banks (1); largest bank (7); largest banks remain (2); largest banks remain profoundly troubled (1); LaSalle Bank's name (1); latest FDIC Quarterly Banking Profile (1); leading central Bank (1); leave zombie banks (1); legacy zombie banks continues (1); Let Big U.S. Banks Fail (1); let failed banks go (1); letting banks create credit (1); Level 3 bank assets increase ominously (1); leveraged bank (1); liquidity pool non-central bank eligible CLOs (1); London based bullion banks (1); Long Live Banking (1); main banks built (1); major bank failures (1); major bank liabilities (1); major banking collapse forseen (1); major banks (7); major banks found (1); major central bank investment (1); major economies facing banking crises (1); major Investment Bank (1); making bank (1); market bank (2); McCain Campaign Banked (1); medium-sized regional banks (1); member banks (1); Milton Friedman persuaded central banks (1); Mirrors Bank Rescue Plan (1); Modern Day Banking System (1); Money Centers banks (4); Morgan Stanley Becoming Banks (1); mortgage banking industry (1); Multinational Bullion Banks Involving (1); narrow banking (2); nation Bank (8); nation's biggest bank (1); nation's premier investment bank (1); National Australia Bank's small portfolio (1); Nationalized Anglo Irish banking (1); Needs Big Banks (3); New bank (4); New York Federal Reserve Bank came (1); New York Subpoenas Bank (1); non banking/lending institutions (1); non-banks (2); Non-traditional banking operations (1); Northern Rock bank run (1); NY Federal Reserve Bank (1); Obama's New Bank Giveaway (1); overseas banks (1); owns Bank (3); percentage-taking banks (1); permit banks (2); possible banking collapse (1); potential bank run (1); predator banks (1); prevent banks (1); private bank (14); Private Bank Assistance Plan (2); private investment banks (1); private lending creates bank deposits (1); privatise banks (1); Proposal new bank (1); publicly-owned bank (1); Put Investment Banking (1); Q2 2009 Bank Stress Test Results (1); quarter 2009 Quarterly Banking Profile (1); quarter Bank Profile (4); quarterly banking profiles identified concerns (1); real reason Bank (1); Recapitalize Banks (7); received bank (1); regional banks (4); regional banks exposed (1); relatively smaller banks (1); remaining banks (1); remaining investment banks (1); rescued banks (1); Reserve banks (25); resolve failing banks (1); respective banking systems (1); respective Chinese bank lending make (1); restrain banks leads (1); restructured bank (1); riskless arbitrage diluting bank common stock holders (1); running free-market banks (1); Russian Banking System Teetering (1); s bank (4); s banks bailout (2); s biggest banks (2); s central bank (4); say banks (3); Says Banks Need Expanded Supervision (2); says confidential World Bank report (1); scrutinising Deutsche Bank's role (1); Securities Sink Banks (1); seize banks because (1); Seize Non-bank (1); seized banks (3); Senate Banking (5); Senate Banking Committee (4); Senate Banking Committee Chief Economist Rob Johnson (1); Senate Banking Committee Finally Sends Warning Shot (1); Senate Banking Hearings (1); senior bank regulator William Black (1); separated commercial banks (1); shadow banking system became severely strained (1); shadow banking system long (1); shadow banking system operated (1); Shadow Banking Topology (1); Shadow banks (16); shadow banks conduct credit (1); Shadow banks Systems (13); shady banks using CDS insurance deals (1); shape bank regulations (1); simply crediting bank accounts (1); smaller banks (2); sorcerer's apprentice Greenspan turned shadow banking system (1); Sovereign Bank (2); Sovereign Bank filed (1); spur bank lending (1); state-owned bank (1); Steve Waldman Believes Banking Industry Sick (2); Stiff Swedish Banks (1); Stop Bank Crisis (1); Street bank (11); Stressed Banks Underreporting Libor Rates (1); subverting bank insolvency (1); Supervise Bank Soundness (1); Support banks Nation (1); surreptitiously recapitalize banks (1); Swedish bank (6); Swedish banking crisis (4); Swedish Banking Crisis Best Practices (1); Swedish banking crisis response (2); Swiss banking system comes (1); TARP Bank Equity (1); TBTF banks together (1); time bank (1); Todays bank credit (1); top bank (1); toxic bank assets (1); toxic-asset-free banks (1); traditional Banks (2); troubled bank nonetheless fails (1); troubled banks (2); troubled Wall Street bank (1); true banking (1); turned bank (1); U. S. bank bailout (1); U. S. banks (8); U.S. banking industry (1); U.S. Banking System (3); U.S. Banking System Safe (2); UK central bank (2); UK central banks collude (1); underwater banks (1); underwriting zombie banks (1); upcoming bank crisis (1); Vermont banks told (1); Voodoo Banking (3); Wachovia Bank (1); Wall Street bank (10); Wall Street Banks Using Lehman Style Accounting Trickery Enabled (1); Wall Street money center banks (2); Wall Street Ponzi Scheme Called Fractional Reserve Banking (2); wean banks (1); Western Banking system (2); Western banks (3); World Bank (4); world's biggest banks (1); world's central banks (3); world's Central Banks became steady net sellers (1); zombie banks (10).

Wed 2010-10-13 09:01 EDT

Foreclosure, Subprime Mortgage Lending, and the Mortgage Electronic Registration System

Christopher Peterson

...Mortgage Electronic Registration Systems, Inc., commonly referred to as ``MERS,'' is the recorded owner of over half of the nation's residential mortgages. MERS operates a computer database designed to track servicing and ownership rights of mortgage loans anywhere in the United States. But, it also acts as a proxy for the real parties in interest in county land title records. Most importantly, MERS is also filing foreclosure lawsuits on behalf of financiers against hundreds of thousands of American families. This Article explores the legal and public policy foundations of this odd, but extremely powerful, company that is so attached to America's financial destiny...The article culminates in a discussion of MERS' culpability in fostering the mortgage foreclosure crisis and what the long term effects of privatized land title records will have on our public information infrastructure. The Article concludes by considers whether the mortgage banking industry, in creating and embracing MERS, has subverted the democratic governance of the nation's real property recording system.

foreclosures; mortgage Electronic Registration System; subprime mortgage lending.

Tue 2010-10-12 16:13 EDT

Iceland Rejects Icesave Depositors Bill in Referendum - BusinessWeek [2010-03-07]

Icelanders rejected by a massive majority a bill that would saddle each citizen with $16,400 of debt in protest at U.K. and Dutch demands that they cover losses triggered by the failure of a private bank...Voters rejected the bill because ``ordinary people, farmers and fishermen, taxpayers, doctors, nurses, teachers, are being asked to shoulder through their taxes a burden that was created by irresponsible greedy bankers,'' said President Olafur R. Grimsson, whose rejection of the bill resulted in the plebiscite...Icelanders used the referendum to express their outrage at being asked to take on the obligations of bankers who allowed the island's financial system to create a debt burden more than 10 times the size of the economy...

2010 03 07; BusinessWeek; Iceland Rejects Icesave Depositors Bill; referendum.

naked capitalism Sun 2010-10-10 12:54 EDT

FUBAR Mortgage Behavior: Florida Banks Destroyed Notes; Others Never Transferred Them

...But to give readers the latest report of modern FUBAR, mortgage edition, let us continue with the sorry saga of ``Where's My Note?'' For the benefit of newbies, what everyone calls a mortgage actually has two components: the note, which is the borrower IOU, and the mortgage (in some states, it's called a deed of trust) which is the lien on the property. In 45 states, the mortgage is a mere accessory to the note; you must be the real party of interest in the note in order to foreclose. The pooling and servicing agreement, which governs who does what when in a mortgage securitization, requires the note to be endorsed (just like a check, signed by one party over to the next), showing the full chain of title...The endorsements also have to be wet ink; no electronic signatures permitted. I've had a lot of anecdotal evidence to support the idea that these procedures, which were created in the early days of mortgage securitizations, were simply not observed on a widespread, if not a universal basis...

Florida Banks Destroyed Notes; FUBAR Mortgage Behavior; naked capitalism; transfer.

Sun 2010-10-10 11:56 EDT

The Federal Reserve's Relevance Test - Project Syndicate

Joseph E. Stiglitz

...as investors look outside the US for higher yield, the flood of money out of the dollar has bid up exchange rates in emerging markets around the world. Emerging markets know this, and are upset -- Brazil has vehemently expressed its concerns -- not only about the increased value of their currency, but that the influx of money risks fueling asset bubbles or triggering inflation. The normal response of emerging-market central banks to bubbles or inflation would be to raise interest rates -- thereby increasing their currencies' value still more. US policy is thus delivering a double whammy on competitive devaluation -- weakening the dollar and forcing competitors to strengthen their currencies...

Federal Reserve's Relevance Test; Project Syndicate.

Blog entry Sun 2010-10-10 09:51 EDT

Crony Capitalism: Wall Street's Favorite Politicians

Zach Carter

A full 90 members of Congress who voted to bailout Wall Street in 2008 failed to support financial reform reining in the banks who drove our economy off a cliff. But when you examine campaign contribution data, it's really no surprise that these particular lawmakers voted to mortgage our economic future to Big Finance: This election cycle, they've raked in over $48.8 million from the financial establishment. Over the course of their Congressional careers, the figure swells to a massive $176.9 million. The full list of these Crony Capitalists is below, along with the money they pulled in from Big Finance, according to data compiled by the Center for Responsive Politics (opensecrets.org)...

blog entry; Crony Capitalism; Wall Street's Favorite Politicians.

Sat 2010-10-09 10:56 EDT

And Then There Were None | afoe | A Fistful of Euros | European Opinion

Edward Hugh

...rather than being over, what the debt crisis now may be entering is a new stage, where one sovereign bond after another is being chisled out and sent off to join their Greek counterpart in the isolation ward...the Irish economy has never really left recession...Irish GDP has now contracted on a quarterly basis for 9 out of the past 10 quarters, and there is no evident end in sight....the riskiest lenders to nationalized Anglo Irish Bank may not get all their money back...In the Portuguese case it is the budget deficit issue which is unsettling the markets, with the spread widening sharply following the revelation that far from the deficit being reduced is was actually increasing...Neither the European sovereign debt crisis nor the banking sector crisis has been resolved and both continue to mutually reinforce each other...the EU's stress tests for banks had manifestly failed to restore the necessary confidence.

afo; euro; European opinion; fisted.

Fri 2010-10-08 21:27 EDT

Bank of America Suspends Foreclosures in All States >> naked capitalism

Yves Smith

...The robo signing of affidavits was clearly done across all sorts of court actions. As we indicated, the bogus affidavits are used in all foreclosures in judicial states; they aver various things about the plaintiff's indebtedness, including the plaintiff's ownership of the debt that are integral to the process. Providing an improper affidavit is considered to be a fraud on the court...affidavit abuses are mere symptoms of much deeper problems with the mortgage securitizations. Why, pray tell, are law firms and servicers engaging in false representations and widespread document forgeries? It is because, as we have stressed, they made a botch of getting the notes (the borrower IOU) into the trusts, and simple fixes don't work, hence the need to create a phony document trail. The Bank of America suspension of foreclosures in all states appears to be a tacit admission that the problems are as pervasive as we have suggested...

America suspends foreclosures; bank; naked capitalism; state.

Fri 2010-10-08 21:11 EDT

4ClosureFraud Posts Lender Processing Services Mortgage Document Fabrication Price Sheet >> naked capitalism

Yves Smith

...document fabrication is widespread in foreclosures. The reason is that the note, which is the borrower IOU, is the critical instrument to establishing the right to foreclose in 45 states (in those states, the mortgage, which is the lien on the property, is a mere ``accessory'' to the note). The pooling and servicing agreement, which governs the creation of mortgage backed securities, called for the note to be endorsed (wet ink signatures) through the full chain of title...Evidence is mounting that for cost reasons, starting in the 2004-2005 time frame, originators like Countrywide simply quit conveying the note. We are told this practice was widespread, probably endemic. The notes are apparently are still in originator warehouses. That means the trust does not have them (the legalese is it is not the real party of interest), therefore it is not in a position to foreclose on behalf of the RMBS investors. So various ruses have been used to finesse this rather large problem...We finally have concrete proof of how widespread document fabrication was...This revelation touches every major servicer and RMBS trustee in the US...The story that banks have been trying to sell has been that document problems like improper affidavits are mere technicalities. We've said from the get go that they were the tip of the iceberg of widespread document forgeries and fraud...

4ClosureFraud Posts Lender Processing Services Mortgage Document Fabrication Price Sheet; naked capitalism.

Fri 2010-10-08 20:54 EDT

BofA Halts All Foreclosure Sales - WSJ.com

Bank of America is placing a moratorium on all foreclosure proceedings and sales in the U.S., amid political pressure on U.S. banks to examine foreclosure-documentation problems.

BofA Halts; com; Foreclosures Sale; WSJ.

naked capitalism Thu 2010-09-30 08:22 EDT

Why Backstopping Repo is a Bad Idea

The normally sound Gillian Tett of the Financial Times endorses an idea that is both dangerous and unnecessary, namely, government backstopping of the system of short-term collateralized lending called repo, for ``sale with agreement to repurchase.''...But the real problem is that the only securities that were once considered to be suitable were those of the very highest quality, namely Treasuries. The real problem is in widening the market beyond that. If you have absolutely impeccable collateral, you don't care if your counterparty goes belly up if you aren't at risk of losses on the assets you hold...the real problem is the use of low quality collateral...why would we possibly WANT a system that might down the road encourage the pledging of less than stellar instruments as repo?...we need to go back and look hard at why the need for repo has risen since 2001, and how much is related to legitimate activity. The fact that it grew much more rapidly than the economy overall suggests not...official efforts should proceed...to shrink the repo market (as we've recommended for a market that has contributed to the growth of repo, credit default swaps)...our efforts NOT to restrain banks leads to a tremendous tax on all of us...a banking industry that creates global crises is negative value added from a societal standpoint. It is purely extractive...

Backstopping Repo; Bad Ideas; naked capitalism.

New Economic Perspectives Wed 2010-09-29 09:11 EDT

An Interview with Warren Mosler: Modern Money Theory and the Exonomy

Economic Perspectives from Kansas City

...unemployment is evidence of a lack of aggregate demand, so what the world is lacking is sufficient aggregate demand. *In the United States, my prescription includes 1) what we call a payroll tax holiday, i.e., a tax reduction, 2) a revenue distribution to the states by the federal government and 3) a federally funded $8.00-per-hour job for anyone willing and able to work. * *For the euro zone, I propose a distribution from the European Central Bank to the national governments of perhaps as much as 20 percent of GDP to be done on a per capita basis so it will be fair to all the member nations*.

Exonomy; interview; Modern Money Theory; New Economic Perspectives; Warren Mosler.

Minyanville Wed 2010-09-29 09:08 EDT

Excerpt From "Traders, Guns & Money" (Part 3)

Satyajit Das

Minyanville Professor Satyajit Das' book "Traders Guns & Money" is a wickedly comic exposé of the culture games and pure deceptions played out every day in trading rooms around the world. And played out with other people's money. Das is an international expert on financial derivatives and has more than 30 years of experience in the financial markets. Having worked on both the sell side and buy side for such banks as the Commonwealth Bank of Australia Citicorp Investment Bank Merrill Lynch and the TNT Group he now acts as a consultant advising banks and corporations and presenting

excerpts; gun; Minyanville; money; Part 3; Traders.

Sat 2010-09-25 11:02 EDT

Where is the World Economy Headed?

Michael Hudson

...financial maneuvering and debt leverage play the role that military conquest did in times past. Its aim is still to control land, basic infrastructure and the economic surplus -- and also to gain control of national savings, commercial banking and central bank policy...Indebted ``host economies'' are in a similar position to that of defeated countries. Their economic surplus is transferred abroad financially, while locally, debtors lose sovereignty over their own financial, economic and tax policy. Public infrastructure is sold off to foreign buyers, on credit and therefore paying interest and fees that are expensed as tax-deductible and paid to foreigners. The Washington Consensus applauds this pro-rentier policy. Its neoliberal ideology holds that the most efficient path to wealth is to shift economic planning out of the hands of government into those of bankers and money managers in charge of privatizing and financializing the economy. Almost without anyone noticing, this view is replacing the classical law of nations based on the idea of sovereignty over debt and financial policy, tariff and tax policy...Bankers in the North look upon any economic surplus -- real estate rent, corporate cash flow or even the government's taxing power or ability to sell off public enterprises -- as a source of revenue to pay interest on debts...The original liberals -- from Adam Smith and the Physiocrats through John Stuart Mill and even Winston Churchill -- urged that the tax system be based on the economic rent of land so as to keep down the price of housing (and hence labor's cost of living). The Progressive Era followed this principle by aiming to keep natural monopolies such as transportation, communication and even banks (or at least, free credit creation) in the public domain. But the post-1980 world has encouraged private owners to buy them on credit and extract economic rent, thereby shifting the tax burden onto labor, industry and agriculture -- while concentrating wealth, first on credit and then via the enormous recent public bailouts of this failed financial debt pyramiding and deregulation...At issue is the concept of free markets. Are they to be free from monopoly and special privilege, or free for the occupying financial invaders and speculators?...

World Economy Headed.

zero hedge - on a long enough timeline, the survival rate for everyone drops to zero Sat 2010-09-25 09:47 EDT

Chris Whalen On The Upcoming "Worst Economic Contraction Since WWI (Forget WWII)"

Chris Whalen at Institutional Risk Analytics

The erosion of the profitability of the U.S. banking industry over the past two years under the glorious Summers-Geithner-Bernanke rescue scheme is the proverbial fly in the ointment for both major political parties. Democrats and republicans alike are going to be fed into the meat grinder over the next several years as the banking sector deals with literally hundreds of billions of dollars in direct and indirect expenses from the deflation of the mortgage bubble. For the economy, this slow process of muddle along championed by Summers and Geithner will ensure that Barack Obama becomes the Herbert Hoover of the Democratic Party. The economic carnage that will causes these losses, as we described in a recent post in Reuters, "Double Dip or Global Deflation?," is going to represent the worst economic contraction since WWI. Forget WWII. Think "shrinkage" to use the Gilded Age description for economic deflation. And frankly nothing that either the Fed or Treasury does in the near-term can change this basic economic fact of restructuring...the economic situation at BAC and among all of the legacy zombie banks continues to worsen. No amount of bullshit from Washington changes the fundamental economic situation inside the largest U.S. lenders.

Chris Whalen; dropped; Forget WWII; long; survival rate; Timeline; upcoming; worst economic contraction; WWI; zero; Zero Hedge.

Mon 2010-09-20 10:14 EDT

Mish's Global Economic Trend Analysis: Fictional Reserve Lending And The Myth Of Excess Reserves

...1) Lending comes first and what little reserves there are (if any) come later. 2) There really are no excess reserves. 3) Not only are there no excess reserves, there are essentially no reserves to speak of at all. Indeed, bank reserves are completely "fictional". 4) Banks are capital constrained not reserve constrained. 5) Banks aren't lending because there are few credit worthy borrowers worth the risk. ...concern that excess reserves will lead to lending and inflation is totally unfounded in theory and practice. Fractional Reserve Lending is really Fictional Reserve Lending. In practice, the major constraints to lending are insufficient capital and willingness of credit worthy borrowers to seek loans.

excess reserves; Fictional Reserve Lending; Mish's Global Economic Trend Analysis; myth.

Mon 2010-09-20 10:12 EDT

Mish's Global Economic Trend Analysis: Fiat World Mathematical Model

...Conditions today are essentially the same as during the great depression...It is the destruction of credit, coupled with the fact that what the Fed is printing is not even being lent that matters...we are in deflation based on the following definitions: Inflation is a net expansion of money and credit. Deflation is a net contraction of money and credit. In both definitions, credit needs to be marked to market...the mark to market value of credit is contracting faster than base money is rising...The Fed tries to hide the contraction in the market value of bank credit by its Don't Ask, Don't Sell policy...The credit bubble that just popped exceeded that preceding the great depression, not just in the US but worldwide. Thus, it is unrealistic to expect the deflationary bust to be anything other than the biggest bust in history. Those looking for hyperinflation or even strong inflation in light of the above, are simply looking at the wrong model...

Fiat World Mathematical Model; Mish's Global Economic Trend Analysis.

Mon 2010-09-20 09:49 EDT

Escaping the Sovereign Debt Trap

Ellen Brown

...Debt forces individuals into financial slavery to the banks, and it forces governments to relinquish their sovereignty to their creditors, which in the end are also private banks, the originators of all non-cash money today. In Great Britain, where the Bank of England is owned by the government, 97% of the money supply is issued privately by banks as loans. In the U.S., where the central bank is owned by a private consortium of banks, the percentage is even higher. The Federal Reserve issues Federal Reserve Notes (or dollar bills) and lends them to other banks, which then lend them at interest to individuals, businesses, and local and federal governments...n the past there have been successful models in which the government itself issued the national currency, whether as paper notes or as the credit of the nation. A stellar example of this enlightened approach to money and credit was the Commonwealth Bank of Australia, which operated successfully as a government-owned bank for most of the 20th century. Rather than issuing ``sovereign debt'' -- federal bonds indebting the nation to pay at interest in perpetuity -- the government through the Commonwealth Bank issued ``sovereign credit,'' the credit of the nation advanced to the government and its constituents... The Commonwealth Bank was able to achieve so much with so little because both its first Governor, Denison Miller, and its first and most ardent proponent, King O'Malley, had been bankers themselves and knew the secret of banking: that banks create the ``money'' they lend simply by writing accounting entries into the deposit accounts of borrowers...Today there is renewed interest in reviving a publicly-owned bank in Australia on the Commonwealth Bank model. The United States and other countries would do well to consider this option too.

escape; Sovereign Debt Trap.