Pakistani troops fire on US soldiers near Afghan border, reports say

Security officials say soldiers were trying to enter South Waziristan by helicopterPakistani soldiers near the Afghan border. Photograph: Matiullah Achakzai/EPAPakistani troops opened fire on US soldiers trying to enter the country’s lawless tribal area today, according to reports, marking a dangerous further deterioration in relations between the two anti-terror allies.Details of the incident, in South [...] continue reading the breaking news

Scottish activist films Israeli navy shooting at Gaza fishermen

Claims of 14 deaths in previous incidentsA SCOTTISH human rights activist has filmed the Israeli navy firing machine guns at unarmed Palestinian fishing boats in the Mediterranean Sea off the coast of the Gaza Strip.The footage, taken on September 6 by Andrew Muncie, who is from the Highlands, shows an Israeli gunboat engaging fishing boats [...] continue reading the breaking news

Home Office: Car journeys to be stored on a national database for five years

CCTV cameras, converted to read ANPR data, capturing people’s movement. Photograph: Peter Macdiarmid/ReutersThe police are to expand a car surveillance operation that will allow them to record and store details of millions of daily journeys for up to five years, the Guardian has learned. Paul Lewis on police plans to store car surveillance records [...] continue reading the breaking news

Controlled drugs dumped uncontrolled into water

MINNEAPOLIS (AP) - In a frustrating quirk in government policy, the most tightly controlled drugs - like painkilling narcotics prone to abuse - are the ones that most often elude environmental regulation when they become waste.Federal narcotics regulators impose strict rules meant to keep controlled pharmaceuticals out of the wrong hands. Yet those rules also [...] continue reading the breaking news

Cheney Misled GOP Leaders, New Book Says

A GOP congressional leader who was wavering on giving President Bush authority to wage war in late 2002 said Vice President Cheney misled him by saying that Iraqi President Saddam Hussein had direct personal ties to al-Qaeda terrorists and was making rapid progress toward a suitcase nuclear weapon.That’s one of the revelations in the new [...] continue reading the breaking news

Russia halts trading after 17% share price fall

(Financial Times) - Russian shares suffered their steepest one-day fall in more than a decade on Tuesday, losing up to 20 per cent, as a sharp slide in oil prices and difficult money market conditions triggered a rush to sell.The heads of the Russian central bank, the finance ministry and the financial market regulator met [...] continue reading the breaking news

Fed pumps $70B into nation’s financial system

WASHINGTON - Urgently trying to keep cash flowing amid a Wall Street meltdown, the Federal Reserve on Tuesday pumped another $70 billion into the nation’s financial system to help ease credit stresses.The Federal Reserve Bank of New York’s action came in two operations in which $50 billion and then another regularly scheduled $20 billion were [...] continue reading the breaking news

FDA Criticized Over Plastic Chemical

Groups Raise Questions About the Safety of Bisphenol AReviewed by Louise Chang, MDSept. 16, 2008 — Researchers and environmental groups attacked the FDA for concluding that a widely used plastic ingredient is safe for humans, saying the agency ignored critical studies showing potential ill health effects.The comments came at a hearing called by the FDA [...] continue reading the breaking news

Lawmakers Question Results of Anthrax Investigation

Senate Judiciary Chairman Patrick Leahy (D-Vermont) told FBI leaders this morning that he does not believe “in any way shape or manner” that lead anthrax suspect Bruce E. Ivins acted alone.Leahy, an intended recipient of one of the anthrax-packed 2001 letters, publicly cast doubt on the bureau’s conclusion last month that the bioweapons researcher carried [...] continue reading the breaking news

Federal bank insurance fund dwindling

Federal bank insurance fund dwindling, regulators consider options for replenishing itWASHINGTON (AP) — Banks are not the only ones struggling in the growing financial crisis. The fund established to insure their deposits is also feeling the pinch, and the taxpayer may be the lender of last resort.The Federal Deposit Insurance Corp., whose insurance fund has [...] continue reading the breaking news

Wall Street crisis deepens and Banks rush to do deals

NEW YORK (Reuters) - Manic and increasingly desperate dealmaking gripped Wall Street on Wednesday as U.S. stocks plummeted to three-year lows amid new signs of distress in the global financial industry.Morgan Stanley was discussing a merger with regional banking powerhouse Wachovia, the New York Times reported. CEO John Mack got [...] continue reading the breaking news

Roubini: USA transforming into USSRA

Nouriel RoubiniAn economic analyst says by buying out investment giants, the USA had transformed into the USSRA (the United Socialist State Republic of America). “This transformation of the USA into a country where there is socialism for the rich, the well connected and Wall Street (i.e. where profits are privatized and losses are socialized) continues [...] continue reading the breaking news

U.S. Senate passes $612 bln defense spending bill

WASHINGTON, Sept 17 (Reuters) - The U.S. Senate on Wednesday overwhelmingly approved a $612.5 billion defense spending bill for fiscal 2009, including $70 billion for operations in Iraq and Afghanistan.As passed on an 88-8 vote, the measure would authorize $103.9 billion for Pentagon procurement, $1.2 billion more than President George W. Bush’s request. Overall, [...] continue reading the breaking news

The United States may be “days away from a complete meltdown of our financial system”

Key lawmakers promise fast action on bailoutWASHINGTON (AP) - Senate Banking Committee Chairman Chris Dodd says the United States may be “days away from a complete meltdown of our financial system” and Congress is working quickly to prevent that.Dodd said Friday that Democrats and Republicans on the Hill are coming together to support the Bush [...] continue reading the breaking news

China: Tests find chemical melamine also in liquid milk

A child receives an ultrasonic inspection for kidney stones at a children’s hospital in Chengdu, in southwest China’s Sichuan province Friday, Sept. 19, 2008.BEIJING (AP) - China’s tainted milk crisis widened Friday after tests found the industrial chemical melamine in liquid milk produced by three of the country’s leading dairy companies, the quality watchdog said.Singapore [...] continue reading the breaking news

Australian Troops Kill Afghan Governor, Two Guards in Botched Raid

Just days after General David McKiernan announced his “revised tactical order” designed to reduce the number of civilians killed in NATO raids, Australian special forces surrounded a house in the Afghan province of Oruzgan and opened fire, killing district governor Razi Khan and two of his bodyguards, and injuring two others.Afghan President Hamid Karzai referred [...] continue reading the breaking news

Robert F. Kennedy Jr. : How the news media fails us

“There are 5 giant multinational corporations who control all 14.000 radio stations in America, all 5.000 TV Stations, 80% of our newspapers, all of our billboards and most of the large internet content providers.”Source: YouTube continue reading the breaking news

Why the government rushes to ’save’ money-market funds

First have a look at the following two articles:Rushing to save money-market fundsIn effort to calm critical part of the broader financial system, Fed and Treasury take three-pronged measure to stabilize troubled funds.NEW YORK (CNNMoney.com) — Coming to the rescue of a bedrock of American investing, the Treasury Department and the Federal Reserve took three [...] continue reading the breaking news

Will the markets get worse? (Jim Rogers on CNN)

CNN’s Andrew Stevens talks to financial investor Jim Rogers about what’s ahead for world stock markets.Added Sept. 18, 2008Source: YouTube continue reading the breaking news

CNN: Will the rescue plan work?

Kirby Daley of financial brokerage Newedge Group on emergency measures to help rescue banks from bad debt.Hinzugefügt: 19. September 2008, Source: YouTubeThe burden is shifted from the shareholders to the taxpayers.This is socialism for the rich as Ron Paul and Jim Rogers said before.Will the rescue plan work???If not it is the financial system [...] continue reading the breaking news

Capitalism in convulsion: Toxic assets head towards the public balance sheet

In the space of just two momentous weeks, the landscape of global finance has been dramatically transformed. President George W. Bush’s administration has mounted a multi-billion-dollar rescue of the financial system at the cost of inflicting severe damage on the US model of free- market capitalism.Heavy costs will be inflicted on the American taxpayer, who [...] continue reading the breaking news

US: Conservative congressmen urge Bush to cut off aid to Wall Street

Frustrated by the US government’s rescue of AIG, Fannie Mae and Freddie Mac, a group of 100 conservative congressmen today urged the Bush administration to stop keeping Wall Street afloat.In a letter to the treasury secretary and Federal Reserve chairman, members of the conservative Republican Study Committee (RSC) lamented the abandonment of free-market principles.Rescuing failing [...] continue reading the breaking news

Greenspan’s sins return to haunt us

Back in 2002, when his reputation as “The Man Who Saved the World” was at its peak, Alan Greenspan, former chairman of the Federal Reserve, came to Britain to pick up his knighthood. His biggest fan, Gordon Brown, now the UK prime minister, had ensured that the citation said it was being awarded for promoting [...] continue reading the breaking news

ALMOST ARMAGEDDON - MARKETS WERE 500 TRADES FROM A MELTDOWN

Click image to enlarge. The market was 500 trades away from Armageddon on Thursday, traders inside two large custodial banks tell The Post.Had the Treasury and Fed not quickly stepped into the fray that morning with a quick $105 billion injection of liquidity, the Dow could have collapsed to the 8,300-level - [...] continue reading the breaking news

The Paulson Manifesto Will Fail Because It Fails American Households

As a trader, I stopped getting disgusted at government manipulation of markets several years ago, didn’t pretend it wasn’t happening, just tried to find when it was coming. I decided to develop an indicator that would tell [...] continue reading the breaking news

IT’S THE DERIVATIVES, STUPID! WHY FANNIE, FREDDIE AND AIG ALL HAD TO BE BAILED OUT

“I can calculate the movement of the stars, but not the madness of men.”- Sir Isaac Newton, after losing a fortune in the South Sea bubbleSomething extraordinary is going on with these government bailouts. In March 2008, the Federal Reserve extended a $55 billion loan to JPMorgan to “rescue” investment bank Bear Stearns from [...] continue reading the breaking news

Judge Orders Cheney to Preserve Records

Vice President Dick Cheney has argued that his office is not part of the executive branch of government.Filippo Monteforte, AFP / Getty ImagesWASHINGTON (Sept. 21) - A federal judge on Saturday ordered Dick Cheney to preserve a wide range of the records from his time as vice president.The decision by U.S. District Judge Colleen Kollar-Kotelly [...] continue reading the breaking news

Israel’s scandal-hit PM Olmert resigns

JERUSALEM (AFP) - Israel’s scandal-tainted Prime Minister Ehud Olmert resigned on Sunday, setting the stage for weeks of more political turmoil as the horse-trading begins to form a new government.Olmert , who is battling a swathe of corruption allegations, handed a brief letter to President Shimon Peres announcing that “in line with his commitments, he [...] continue reading the breaking news

Russia defies West with new arms spending

Dmitry Medvedev, the Russian president, yesterday vowed to defy Western attempts to isolate Moscow as he gave his backing to an ambitious re-armament programme.Both Mr Medvedev and Vladimir Putin, the prime minister, resorted to the language of the Cold War as they pledged to increase defence spending by 50 per cent over the next three [...] continue reading the breaking news

Financial crisis: Default by the US government is no longer unthinkable

Hard times: central banks have acted to avoid a repeat of 1929So, here we are - the start of a new world order. After the tumultuous events of the last fortnight, the global economic landscape will never look the same again.Power has tangibly shifted - away from the United States [...] continue reading the breaking news

Safe Haven

1. Problem: The elite created the problem.2. Reaction: The elite made sure through corporate media that people will react a certain way. “We need to do something!”3. Solution: The elite offers the “only” solution, which is “to safe” Wall Street’s elite who created the problem in the first place, relieving the major banks and investment [...] continue reading the breaking news

The Bailout Is NOT Limited to $700 Billion, Paulson Could Spend UNLIMITED Taxpayer Money

Most people think that the proposed bailout will cost $700 billion. In fact, it is not limited to $700 big ones, and will probably go much higher.Specifically, Paulson’s draft bailout plans says:“The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time.”That means that Paulson could [...] continue reading the breaking news

Goldman Sachs, Morgan Stanley Become Banks, Ending an Era for Wall Street

U.S. flags fly outside the headquarters of Goldman Sachs Group Inc., in New York, Sept. 16, 2008. Photographer: Gino Domenico/Bloomberg NewsSept. 22 (Bloomberg) — The Wall Street that shaped the financial world for two decades ended last night, when Goldman Sachs Group Inc. and Morgan Stanley concluded there is no future in remaining investment banks [...] continue reading the breaking news

Russian warships set sail for manoeuvres near US waters

MOSCOW (AFP) - A fleet of Russian warships led by a massive missile cruiser set sail from their Arctic base on Monday for naval exercises off Venezuela near US waters that have not been seen since the Cold War.“They left at 10:00 am (0600 GMT). It’s the nuclear-powered guided missile cruiser Peter the Great, the [...] continue reading the breaking news

Dollar May Get `Crushed’ as Traders Weigh Up Bailout

U.S. one dollar bills are displayed for a photograph in New York, April 15, 2008. Photographer: Daniel Acker/Bloomberg NewsSept. 22 (Bloomberg) — Treasury Secretary Henry Paulson’s plan to end the rout in U.S. financial markets may derail the dollar’s three-month rally as investors weigh the costs of the rescue.The combination of spending $700 billion on [...] continue reading the breaking news

Pakistani leaders should have been at bombed hotel

The Pakistani President, Prime Minister and military chief of staff were due to attend a banquet at the Marriott Hotel in Islamabad, where bombers killed at least 53 people, but a last-minute change of venue saved them.The disclosure that the leadership of the country was the likely target of the attack on Saturday [...] continue reading the breaking news

Russia Says Deadly Ossetia Blast Aimed to Undermine Cease-Fire

Oct. 4 (Bloomberg) — The Russian Defense Ministry said an explosion in separatist South Ossetia that killed seven Russian military personnel, including a senior officer, was intended to break a cease-fire with Georgia.The ministry “regards this event as a carefully planned terrorist attack aimed at breaking off the fulfillment of all sides’ obligations under the [...] continue reading the breaking news

Europe fights financial storm as bank deal collapses

Nicolas Sarkozy (C) flanked by Angela Merkel (L) and Gordon BrownPARIS (AFP) - The leaders of Europe’s four main economic powers vowed to protect fragile banks in their fight against the global credit crisis as the biggest rescue in German financial history collapsed.France, Germany, Britain and Italy put on a united front, promising a more [...] continue reading the breaking news

Russia to stage largest air force war games since Soviet times

Russia will stage its largest air force war games since Soviet times next week in the latest stage of the Kremlin’s strategy to show off the country as a military superpower reborn. Their progress watched closely by increasingly jittery western militaries, dozens of nuclear bombers will take part in the exercise. Tu-95 Bear bombers will [...] continue reading the breaking news

Ron Paul on CNN: This Country Is Bankrupt

Added: Oct. 5, 2008Source: YouTube continue reading the breaking news

America: Freedom to Fascism - Director’s Authorized Version

Source: Google Video“Born in Brooklyn and raised on Long Island, Aaron Russo began promoting rock and roll shows at local theaters while still a high school student.From there, he worked for his family’s business, opened a night club in Chicago where he helped create the careers of such legendary acts as Led Zeppelin, The Who, [...] continue reading the breaking news

Government will spy on every call and e-mail

Ministers are considering spending up to £12 billion on a database to monitor and store the internet browsing habits, e-mail and telephone records of everyone in Britain.GCHQ, the government’s eavesdropping centre, has already been given up to £1 billion to finance the first stage of the project.Hundreds of clandestine probes will be installed to monitor [...] continue reading the breaking news

Germany guarantees bank deposits

Chancellor Angela Merkel and Finance Minister Peer Steinbrück announcing their plan for Hypo Real Estate in Berlin on Sunday. (Pool photo by Rainer Jensen)FRANKFURT: As German leaders and bankers worked feverishly to rescue a lender considered too big to fail, the government announced Sunday that it would guarantee all private savings accounts in Germany - [...] continue reading the breaking news

Iceland’s economy on brink as lender falters

ICELAND’S Kaupthing Bank is headquartered in Reykjavik, about 1800 kilometres from the City of London, but the financial volcano threatening to erupt on the island could send shockwaves down every high street in Britain.The bank, with liabilities several times larger than Iceland’s gross domestic product, runs accounts for 150,000 Britons. It is also a key [...] continue reading the breaking news

BNP Paribas to take control of Fortis

FRENCH bank BNP Paribas has confirmed it has taken control of ailing finance group Fortis’s arms in Belgium and Luxembourg to create the “leading European bank in terms of deposits.”The deal, thrashed out over a weekend of intense talks, leaves the Belgian and Luxembourg governments with reduced holdings in Fortis, which they partly nationaised [...] continue reading the breaking news

Financial crisis: Stock market suffers its worst fall in history

The UK stock market has suffered its worst one-day fall in history as the banking crisis intensified.The FTSE-100 index of Britain’s biggest companies dropped by 391.06 points - its steepest ever fall - to end the day down 7.9 per cent.The FTSE’s tumble was mirrored across Europe, as markets in France, Germany, Italy and Spain [...] continue reading the breaking news

Stricken Iceland sends out financial SOS

Economy is in turmoil as currency collapses and inflation soarsIceland was seeking the financial help of the US and Scandinavian countries last night as politicians and businessmen scrambled to save the country’s economy.Officials were locked in meetings for most of the weekend, with the Government hoping to come to some sort of resolution before stock [...] continue reading the breaking news

Palin guilty of abusing power

Sarah Palin is alleged to have pressured officials to dismiss a state trooper. Photo: AFPREPUBLICAN vice-presidential nominee Sarah Palin abused her power as Alaska governor, investigators found yesterday, in another blow to John McCain’s struggling White House bid.As Senator McCain sought to restore control over unruly rallies that have seen a stream of invective, including [...] continue reading the breaking news

Bonds dry up as funding source; Some government projects on hold

Local governments seeking money for roads, schools and a host of other projects are finding it difficult to secure financing, leading some to put those projects on hold.The demand from investors for municipal bonds has dropped off a cliff in the past couple of weeks, sending interest rates higher and making it more expensive for [...] continue reading the breaking news

Fannie, Freddie to Buy $40 Billion a Month of Troubled Assets

Oct. 11 (Bloomberg) — Federal regulators directed Fannie Mae and Freddie Mac to start purchasing $40 billion a month of underperforming mortgage bonds as the Bush administration expands its options to buy troubled financial assets and resuscitate the U.S. economy, according to three people briefed about the plan.Fannie and Freddie began notifying bond traders last [...] continue reading the breaking news

Ron Paul added to Louisiana presidential ballot

When Louisiana voters go to the polls to chose a president on Nov. 4, they will find a name on the ballot many might not expect - Ron Paul.Louisiana will be only one of two states where voters will have the opportunity to pull the lever for Paul, a congressman from Texas who ran unsuccessfully [...] continue reading the breaking news

States warned about impending mortgage crisis

Bush administration, financial industry thwarted efforts to curb greedMore than five years ago, in April 2003, the attorneys general of two small states traveled to Washington with a stern warning for the nation’s top bank regulator. Sitting in the spacious Office of the Comptroller of the Currency, with its panoramic view of the capital, the [...] continue reading the breaking news

JIM ROGERS: GLOBAL BANKERS HAVE UNLEASHED INFLATIONARY HOLOCAUST

Legendary investor Jim Rogers warned during a CNBC interview this morning that global central banks are creating the environment for an inflationary holocaust by their ceaseless overprinting of currency, a measure that isn’t even successful in stabilizing the stock market.Rogers said that the only solution to the market crisis was to let failing banks and [...] continue reading the breaking news

Fed Lets Europe Central Banks Offer Unlimited Dollars, Removes Swap Limits

Fed Releases Flood of Dollars, Market Rates FallOct. 13 (Bloomberg) — The Federal Reserve led an unprecedented push by central banks to flood the financial system with as many dollars as banks want, backing up government efforts to revive confidence and helping to reduce money-market rates.The European Central Bank, the Bank of England and the [...] continue reading the breaking news

EU Nations Commit 1.3 Trillion Euros to Bank Bailouts

Oct. 13 (Bloomberg) — France, Germany, Spain, the Netherlands and Austria committed 1.3 trillion euros ($1.8 trillion) to guarantee bank loans and take stakes in lenders, racing to prevent the collapse of the financial system.The announcements came as Britain took majority stakes today in Royal Bank of Scotland Group Plc and HBOS Plc. The coordinated [...] continue reading the breaking news

Europe to US: You messed up the rescue, too

The plans for a massive bank bailout by European governments differ strikingly from the U.S. approach.PARIS (Fortune) — First you mess up the world’s financial system. Then you blow the rescue of it. Now let’s show you how to do it properly.That, in a nutshell, is the less-than-flattering message European governments are sending to the [...] continue reading the breaking news

U.S. Is Investing $250 Billion in Banks

Treasury Chief Says Banks Must Deploy New CapitalTreasury Secretary Henry M. Paulson Jr., speaking in Washington on Tuesday morning, described the government’s bailout as “extensive, powerful and transformative.” The Federal Reserve chairman, Ben S. Bernanke, is at right.WASHINGTON - Describing the government’s financial bailout plan as “extensive, powerful and transformative,” Treasury Secretary Henry M. [...] continue reading the breaking news

Wall Street Turns South

Most U.S. Stocks Fall as Earnings Concern Overshadows Bank Plan Oct. 14 (Bloomberg) — Most U.S. stocks fell a day after the market’s biggest rally since the 1930s as a worsening outlook for earnings forced investors to look beyond a $2 trillion global push to rescue banks.PepsiCo lost as much as 14 percent, the [...] continue reading the breaking news

Why should gold stop at $1,500?

LONDON (MarketWatch) — Euphoria over bank bailouts and the temporarily buoyant stock markets is masking a sober reality.The piper still has to be paid.One fairly sanguine estimate of the cost of salvaging Wall Street came Tuesday morning from analysts at Merrill Lynch. They figure the inflationary effect of all the bank bailout measures now underway [...] continue reading the breaking news

Big Brother database: the revolt grows

Labour MPs join opposition parties in attack on Home Secretary’s ‘Orwellian’ plansJacqui Smith faces a parliamentary backlash over “Orwellian” plans to intercept details of email, internet, telephone and other data records of every person in Britain. Labour MPs joined opposition parties in expressing doubts about plans announced by the Home Secretary which could lead to [...] continue reading the breaking news

Crisis spreads to Eastern Europe as Ukraine, Hungary and Serbia call IMF

Ukraine, Hungary, and Serbia are all in emergency talks with the International Monetary Fund, raising fears that an exodus of foreign investors will set off a systemic crisis across Eastern Europe.A team of IMF trouble-shooters rushed to Kiev on Wednesay to draw up a possible standby loan to help Ukraine stabilize its bank after a [...] continue reading the breaking news

Financial crisis: Moscow supermarket shelves increasingly empty in Soviet era reminder

Russian shoppers have been served an uncomfortable reminder of the Soviet era after finding shelves in some Moscow supermarkets empty, a further sign that the woes of the financial markets have begun to affect the mainstream economy. For a generation of Russians who queued daily in the snow for the most basic of staples, the [...] continue reading the breaking news

Lahde quits hedge funds, thanking “stupid” traders for making him rich.

NEW YORK, Oct 17 (Reuters) - Andrew Lahde, the hedge fund founder who shot to fame with his small fund that soared 870 percent last year on bets against U.S. subprime home loans, has called it quits, thanking “stupid” traders for making him rich.In a biting, but humorous letter to investors posted on the website [...] continue reading the breaking news

Hedge Fund Manager: Goodbye and F—- You

From the Scorched Earth Files:Andrew Lahde, manager of a small California hedge fund, Lahde Capital, burst into the spotlight last year after his one-year-old fund returned 866 percent betting against the subprime collapse.Last month, he did the unthinkable — he shut things down, claiming dealing with his bank counterparties had become too risky. Today, Lahde [...] continue reading the breaking news

Banks Hoard Cash as Credit Card Defaults Rise

Consumers are increasingly unable to pay off their credit cards, forcing banks to hoard cash to protect against future losses and lend to fewer people, according to reports yesterday from several of the nation’s largest banks.These financial disclosures showed a spike in credit card loans going bad, putting further pressure on already-stressed balance sheets. J.P. [...] continue reading the breaking news

Run on Russian bank heightens fears

Globex on Wednesday banned depositors from withdrawing their money as confidence in the Russian banking system began to show signs of evaporating.Globex, a mid-sized retail bank with assets of $4bn (€2.95bn, £2.32bn), is the first Russian bank to experience a run on deposits during the crisis. It lost 13 per cent of its deposits last [...] continue reading the breaking news

Banks borrow record $437.5 billion per day from Fed

A trader counts his money on the floor of the New York Stock Exchange October 7, 2008. REUTERS/Brendan McDermidNEW YORK (Reuters) - Financial institutions ran to their lender of last resort for record amounts of cash in the latest week, under extreme pressure from the worst global financial crisis in a generation, Federal Reserve data [...] continue reading the breaking news

Financial crisis: Christine Lagarde warned Hank Paulson to bail out Lehman Brothers

Christine Lagarde, the French finance minister, warned her US counterpart Hank Paulson that he had to bail out US investment bank Lehman Brothers or face global financial collapse, but her advice went unheeded.Christine Lagarde, the French finance minister, warned her US counterpart Hank Paulson that he must bail out US investment bank Lehman Brothers or [...] continue reading the breaking news

Police clash with police in Brazil violence

Striking police officers were embroiled in a mass-melee with hundreds of their own colleagues in riot gear who policed their protest, amid bizarre scenes in the Brazilian city of Sao Paulo.The clashes between state police and plainclothes investigators last night came after the demonstrators tried to break through a barrier protecting the state [...] continue reading the breaking news

The 56 Trillion Dollar Deficit

Bill Maher Interviews Fmr. Comptroller General David Walker about the huge deficit in America.Source: YouTube(CNN) — The Emergency Economic Stabilization Act contains plenty to make lawmakers on the left and right shudder. On the right, it’s the apparent abandonment of free-market principles. On the left, it’s the absence of punishment for high-flying Wall Street CEO’s.Looking [...] continue reading the breaking news

Switzerland Bails Out UBS; Credit Suisse Raises Funds

Pedestrians walk past a branch of the UBS bank in Bern, Switzerland, on Thursday, Oct. 2, 2008. Photographer: Adrian Moser/Bloomberg NewsOct. 16 (Bloomberg) — Switzerland gave UBS AG, the European bank with the biggest losses from the credit crisis, a $59.2 billion rescue and pushed Credit Suisse Group AG to raise funds, joining authorities around [...] continue reading the breaking news

Afghan strike kills at least 18 civilians

The issue of civilian casualties is hugely controversialAt least 18 civilians have been killed in an air strike by foreign forces in the southern Afghan province of Helmand, reports say.A BBC reporter in the provincial capital Lashkar Gah saw the bodies - three women and the rest children - ranging in age from six [...] continue reading the breaking news

Birmingham on the brink of bankruptcy

With $3.2 billion in debt, the county that is home to Alabama’s largest city is about to go bust. How the credit crisis went South.(Fortune Magazine) — Bob Riley wanted to help. It was Sunday, Oct. 5, and the Alabama governor was on the phone with Neel Kashkari, a Treasury Department official who the next [...] continue reading the breaking news

Secret White House memo endorsed waterboarding

A paper trail on the use of waterboarding and other controversial interrogation techniques by the CIA is emerging in the USThe Bush administration sent two secret memos endorsing the use of waterboarding against al-Qaida suspects, according to today’s Washington Post. They were prompted by worries within the CIA that the administration might later distance itself [...] continue reading the breaking news

Smaller Banks Resist Federal Cash Infusions

Community banking executives around the country responded with anger yesterday to the Bush administration’s strategy of investing $250 billion in financial firms, saying they don’t need the money, resent the intrusion and feel it’s unfair to rescue companies from their own mistakes.But regulators said some banks will be pressed to take the taxpayer dollars anyway. [...] continue reading the breaking news

CNN’s Glenn Beck and Peter Schiff: Inflation Nation and Martial Law

Added: Oct. 13, 2008Source: YouTube continue reading the breaking news

Chicago mayor to shut down government for six days

CHICAGO (Reuters) - Facing a huge hole in Chicago’s current and upcoming budgets, Mayor Richard Daley announced on Tuesday a plan to partially shut down city government for six days.Along with several other measures, the mayor’s plan was aimed at saving $62 million for the city’s corporate or operating fund, which currently faces a $469 [...] continue reading the breaking news

Unemployment to hit three million within a year as it rises at fastest rate for 17 years

Cuts: Unemployment rose by 164,000 in the three months up to August and could hit two million by Christmas as the credit crunch hits homeUnemployment could hit three million by the end of next year to levels not seen since John Major was in power as Britain battles recession, it was warned today.The rate [...] continue reading the breaking news

Whistleblower: Oil watchdog agency ‘cult of corruption’

HONOLULU, Hawaii (CNN) — Bobby Maxwell kept a close eye on the oil industry for more than 20 years as a government auditor. But he said the federal agency he worked for is now a “cult of corruption” — a claim backed up by a recent government report.Bobby Maxwell, a long-time auditor of the [...] continue reading the breaking news

U.S. 2008 Budget Deficit at Record $455 Billion

Oct. 14 (Bloomberg) — The U.S. government posted a record budget deficit for 2008 as financial market strains slowed economic growth and spending rose the most since 1990.The shortfall widened to $455 billion in the fiscal year ended Sept. 30, compared with a $162 billion deficit a year earlier and the previous high of $413 [...] continue reading the breaking news

Roubini: US Will Suffer Worst Recession in 40 Years

Oct. 14 (Bloomberg) — Nouriel Roubini, the professor who predicted the financial crisis in 2006, said the U.S. will suffer its worst recession in 40 years, driving the stock market lower after it rallied the most in seven decades yesterday.“There are significant downside risks still to the market and the economy,” Roubini, 50, a New [...] continue reading the breaking news

Iceland shares plunge 76% as trading resumes

Shares on the Reykjavik stock exchange plunged by 76 per cent when trading resumed after three days of closure as Iceland’s economy continued to teeter on the brink of collapse.Shares later recovered to leave the OMX Iceland 15 index down 47 per cent in morning trade.Market officials said the astounding figure was misleading since the [...] continue reading the breaking news

Europe stuns with €1.5 trillion bank rescue, as France plays role of saviour

Germany, France, Italy, Spain, Holland and Austria have joined forces to launch the greatest bank bail-out in history, offering over €1.5 trillion in guarantees and fresh capital in a “shock and awe” blitz to halt the credit panic.French President Nicolas Sarkozy Photo: PHILIPPE WOJAZERThe move - unveiled simultaneously in the six states to maximise [...] continue reading the breaking news

Icelandic Shoppers Splurge as Currency Woes Reduce Food Imports

Reykjavik, Iceland, on Monday, Oct. 13, 2008. After a four-year spending spree, Icelanders are flooding the supermarkets one last time, stocking up on food as the collapse of the banking system threatens to cut the island off from imports. Photographer: Arnaldur Halldorsson/Bloomberg NewsOct. 13 (Bloomberg) — After a four-year spending spree, Icelanders are flooding the [...] continue reading the breaking news

UK: Trains, water and power may be next in line for a bail-out

The chancellor must take emergency steps to prevent rail, water and power companies going bust in the global economic storm, former cabinet minister Peter Hain has warned.Hain, the former work and pensions secretary, urged the government to draw up reserve powers that could be used in the event of a major utility collapsing and taking [...] continue reading the breaking news

Taleban stage audacious ‘Tet-style’ attack on British HQ city

British and Afghan forces repulsed an attempt by hundreds of Taleban fighters to attack the provincial capital of Helmand, Lashkar Gah, on Saturday night in the most audacious Taliban attack in the province since 2006.A vehicle destroyed in the fire-fight: more than 100 Taleban were killedUp to 100 Taleban fighters were killed in a series [...] continue reading the breaking news

IMF in global meltdown warning

Strauss-Kahn said rich nations had so far failed to restore confidenceThe world financial system is teetering on the “brink of systemic meltdown”, the head of the International Monetary Fund (IMF) has warned in Washington.Dominique Strauss-Kahn said rich nations had so far failed to restore confidence, but he endorsed a new action plan by the [...] continue reading the breaking news

Taliban leader killed by SAS was Pakistan officer

British officials covered up evidence that a Taliban commander killed by special forces in Helmand last year was in fact a Pakistani military officer, according to highly placed Afghan officials.The commander, targeted in a compound in the Sangin valley, was one of six killed in the past year by SAS and SBS forces. When the [...] continue reading the breaking news

UK: Government to save HBOS and RBS

Government set to become biggest shareholder in top banks as Japanese weigh bid for Morgan StanleyTHE government will launch the biggest rescue of Britain’s high-street banks tomorrow when the UK’s four biggest institutions ask for a £35 billion financial lifeline.The unprecedented move will make the government the biggest shareholder in at least two banks.Royal Bank [...] continue reading the breaking news

Only state intervention can save us now, says Merkel

BERLIN: Only the state can restore trust to financial markets now, German Chancellor Angela Merkel was quoted as saying on Sunday amid reports that Berlin was about to unveil a huge rescue package for its banks.“Only action by the state is capable of restoring the necessary trust,” Merkel was quoted as saying by the Bild [...] continue reading the breaking news

Financial crisis: Countries at risk of bankruptcy from Pakistan to Baltics

A string of countries face the risk of “going bust” as financial panic sweeps Asia, Eastern Europe, and Latin America, raising the spectre of a strategic crisis in some of the world’s most dangerous spots.Nuclear-armed Pakistan is bleeding foreign reserves at an alarming rate leading to fears that it could default on its loans.There are [...] continue reading the breaking news

Ten people who predicted the financial meltdown

The financial events of recent weeks have filled many of us with shock and panic. Surely no one could have predicted that we would be in this mess? Well, actually, they did. Here are ten people who saw the financial meltdown coming…1. Vince Cable - deputy leader of the Liberal DemocratsHere is a question Mr [...] continue reading the breaking news

With Spotlight on Pirates, Somalis on Land Waste Away in the Shadows

Above, a severely malnourished baby lay unresponsive on Thursday as the mother and father sat nearby in a feeding center in Afgooye, Somalia.AFGOOYE, Somalia - Just step into a feeding center here, and the sense of hopelessness is overwhelming.Dozens of women sit with listless babies in their laps, snapping their fingers, trying to get a [...] continue reading the breaking news

Glenn Beck: There is a global meltdown coming. It is a global depression.

CNN’s Glenn Beck warns of the New World Order“There is a global meltdown coming. It is a global depression. And one world currency and one world financial system is the endgame… China said last week they want one global currency. France said yesterday they want one world order - a ‘New World Order’ at the [...] continue reading the breaking news

Lehman Brothers demise triggers huge default

Lehman Brothers, the bust investment bank, triggered one of the biggest corporate debt defaults in history yesterday as it emerged that the US Federal Reserve is harbouring grave concerns about whether Washington’s $700 billion (£413 billion) bailout fund will avert a financial meltdown.An auction of Lehman’s bonds yesterday determined that the bank’s borrowings were worth [...] continue reading the breaking news

What is to be Done? A Possible Solution to the Economic Crisis

By PAUL CRAIG ROBERTSReaders have been pressing for a solution to the financial crisis. But first it is necessary to understand the problem. Here is the problem as I see it. If my diagnosis is correct, the solution below might be appropriate.Let’s begin with the fact that the financial crisis is more or less worldwide. [...] continue reading the breaking news

India terrorised by holy war

A holy war in India has left tens of thousands of Christians crammed into relief camps, too scared to return home following weeks of clashes with Hindu mobs in which at least 35 people have died.More than 40,000 Christians have had to flee their homes in Kandhamal district, one of India’s poorest, in the eastern [...] continue reading the breaking news

NATO allows strikes on Afghan drug sites

BUDAPEST: Signaling a major shift in strategy for the trans-Atlantic alliance, NATO defense ministers agreed Friday to allow direct attacks on Afghanistan’s drug networks.The accord means that troops will be able to attack drug operations provided they obtain authorization from their own governments. NATO officials stressed that only drug producers aiding the insurgency would be [...] continue reading the breaking news

Black Friday: Run on the System

Stock markets across the world are in a state of hysteria. The tidal wave of sell-offs, which began when Henry Paulson announced the Bush administration’s $700 billion bailout plan for the sinking banking system, has swelled into a global tsunami racing round the globe.Shares fell sharply across Europe and Asia for the fifth straight day [...] continue reading the breaking news

Fed May See Companies, States as Next Crisis Fronts

Oct. 6 (Bloomberg) — Federal Reserve Chairman Ben S. Bernanke may find the next fronts of the financial crisis to be just as chilling as last month’s downfall of Wall Street titans: its spread to corporate America and state and local governments.Companies from Goodyear Tire & Rubber Co. and Duke Energy Corp. to Gannett Co. [...] continue reading the breaking news

Bank shares plunge again in panicky trading

Shares in Britain’s banks plunged again amid panicky trading following emergency talks with the government over a possible injection of billions of pounds of taxpayers’ money into the banking sector.Royal Bank of Scotland nosedived by almost 40% to 90p in morning trading - its lowest point since the recession of the early 1990s. Barclays, Lloyds [...] continue reading the breaking news

Pakistan facing bankruptcy

Pakistan’s foreign exchange reserves are so low that the country can only afford one month of imports and faces possible bankruptcy.An investor monitors the index at Karachi Stock Exchange in Karachi, Pakistan Photo: BLOOMBERGOfficially, the central bank holds $8.14 billion (£4.65 billion) of foreign currency, but if forward liabilities are included, the real reserves may [...] continue reading the breaking news

Fed, ECB, Central Banks Cut Rates in Coordinated Move

A security officer stands outside of the Federal Reserve building in Washington on Sept. 16, 2008. Photographer: Jay Mallin/Bloomberg NewsOct. 8 (Bloomberg) — The Federal Reserve, European Central Bank and four other central banks lowered interest rates in an unprecedented coordinated effort to ease the economic effects of the worst financial crisis since the Great [...] continue reading the breaking news

U.S. Treasury May Buy Stakes in Banks Within Weeks

Oct. 9 (Bloomberg) — The government is planning to buy stakes in a wide range of banks within weeks as the credit freeze increasingly threatens to tip the U.S. economy into a deep recession.Treasury Secretary Henry Paulson and top aides are still considering options on how the purchases would work, including having the government acquire [...] continue reading the breaking news

Remember 1929 – what seemed to be the end was only the beginning

Dick Fuld, former Lehman Brothers’ chief executive Photo: APThe dismemberment of Dick Fuld, Lehman Brothers’ former chief executive, before a Congressional committee on Monday was a compelling, albeit brutal, event.His televised humiliation was orchestrated by a veteran Democrat, Henry Waxman, whose simple question about Fuld’s alleged $480m of earnings - Is that fair? - [...] continue reading the breaking news

Intelligence study finds chaos in Afghanistan: report

Afghan National Army soldiers raise their rifles as they train in Kabul Sept. 21, 2008. WASHINGTON (Reuters) - U.S. intelligence agencies conclude in a draft report that Afghanistan is in a downward spiral and they doubt whether the Kabul government can stem the Taliban’s rise, The New York Times reported on Thursday.The classified report says [...] continue reading the breaking news

Bernanke, Paulson Seek Global Help as Crisis Spreads

Paulson yesterday signaled he’s considering pumping capital (=Taxpayers’ Money) into U.S. financial institutions, saying “we will use all of the tools we’ve been given to maximum effectiveness” under the $700 billion Troubled Asset Relief Program.______________________________________________________________________________Henry Paulson, secretary of the U.S. Treasury, left, and Ben S. Bernanke, chairman of the U.S. Federal Reserve, testify before the [...] continue reading the breaking news

Zeitgeist: Addendum

Related: Zeitgeist, The Movie, Final EditionAdded: Oct 3, 2008Source: Google Video continue reading the breaking news

Paulson: “Some financial institutions will fail.”

Dow slides 189 points despite global interest rate cutsDow Jones Industrial Average falls for six successive days, losing 14.7% of its valueSpecialists check a screen on the floor of the New York Stock Exchange on Wednesday. Photograph: Richard Drew/APA gloomy day on Wall Street ended with another plunge in stocks after the US treasury secretary, [...] continue reading the breaking news

Russia, Indonesia, Ukraine Shut Exchanges as Stock Rout Worsens

Oct. 8 (Bloomberg) — Russia, Indonesia, Ukraine and Romania shut their stock exchanges after shares plummeted in the worst week for emerging-markets in at least two decades.Russia’s Micex Index dropped 14 percent, having already slumped 20 percent this week, before trading stopped at 11:05 a.m. in Moscow. The exchange won’t reopen until Oct. 10 unless [...] continue reading the breaking news

How the crooked bailout was passed by Congress

Fraud, bribery and threats of violenceCongressman Sherman’s entire presentation The Wall Street Welfare ActThere was a simple solution the banking crisis:Guarantee ALL normal banking deposits. That’s what European countries are doing.With bank deposit guarantees, individuals and real businesses would have access to their money and to normal credit.But the White House took a different [...] continue reading the breaking news

Brown and Darling commit £500 billion for bank bailout

Gordon Brown and Alistair Darling set out a radical £500 billion package today to restore confidence in the UK banking sector and break the crippling logjam in credit markets.The three-part package includes committing up to £50 billion of taxpayer funds for a partial nationalisation of stricken banks, met from increased public borrowing and with political [...] continue reading the breaking news

Thursday is D-Day

Forget the stock market gyrations. Forget Bernanke and Paulson’s ineffective, unconstitutional schemes.Thursday’s auction for Lehman’s credit default swaps (CDS) is much more important.Why?Well, if banks are reassured by the CDS auction, it could do more to free up frozen capital than all of the Fed and Treasury’s ill-conceived plans put together.As Bill Gross, [...] continue reading the breaking news

AIG Executives Blow $440,000 After Getting Bailout

View from the Lobby Lounge TerraceIf you’d just gotten a government bailout, you might be tempted to hold a retreat at a nice California hotel — and that’s exactly what American International Group (AIG: 3.51, -0.36, -9.30%) executives did.The committee on Oversight and Government Reform held a hearing on Tuesday at [...] continue reading the breaking news

Germany to allow domestic military deployment

BERLIN (AP) - Germany’s governing coalition partners want to change the constitution to allow for military deployment within the country if needed to combat terrorism, officials said Monday.The proposal would allow use of the military only if police are overwhelmed and cannot properly respond to a situation themselves.“It is not to be used generally, but [...] continue reading the breaking news

Thailand: Troops patrol Bangkok after clashes

Riot policemen march towards anti-government demonstrators protesting outside Parliament in Bangkok October 7, 2008. REUTERS/Sukree SukplangBANGKOK (Reuters) - Thailand’s military put troops on the streets of Bangkok on Tuesday to keep order after a day of battles between police and anti-government protesters in which more than 380 people were injured.One man was killed by a [...] continue reading the breaking news

Army combat unit to deploy within U.S.

WASHINGTON (CNN) — The United States military’s Northern Command, formed in the wake of the September 11 terrorist attacks, is dedicating a combat infantry team to deal with catastrophes in the U.S., including terrorist attacks and natural disasters.Soldiers preparing for a mission coordinated by Joint Task Force North, the U.S. Northern Command unit.The 1st [...] continue reading the breaking news

The Dollar is Doomed

When the precious metals were smashed out of nowhere and the dollar started climbing this summer I became very worried. I didn’t question my conviction that commodities are in a bull market, or that precious metals in particular are undervalued. I felt something sinister was at work. Neither move was justified on a fundamental level. [...] continue reading the breaking news

Trading in Icelandic banks halted pending announcement

Trading in the shares of Icelandic banks was suspended in Reykjavik ahead of an announcement and because of concerns over the pricing of their shares.Icelandic Prime Minister Geir Haarde is facing a financial meltdownThe suspension covers trading in all financial instruments issued by Kaupthing, Landsbanki, Glitnir, the Icelandic lender bailed out by the government after [...] continue reading the breaking news

Global Stocks Tumble: $2.5 Trillion Global Equities Erased

Credit Crisis Widens Sam Farhood, left, and James Denaro work on the floor of the New York Stock Exchange prior to the Opening Bell in New York, on Oct. 6, 2008. Photographer: Andrew Harrer/Bloomberg News Oct. 6 (Bloomberg) — Stocks tumbled around the world, the euro fell the most against the yen since its debut [...] continue reading the breaking news

Fed will provide as much as $900 in loans to banks

WASHINGTON (AP) - The Federal Reserve will provide as much as $900 billion in cash loans to squeezed banks in an urgent effort Monday to break through a dangerous credit clog that threatens the economy and has unhinged financial markets around the globe.The Fed’s action is aimed at spurring spooked financial institutions, which are hoarding [...] continue reading the breaking news

Chinese milk products banned in Russia

Russia’s Health Ministry has imposed a ban on all Chinese products containing traces of milk, until tests can prove that they do not contain the chemical melamine.Authorities said they seized more than 100 kilos of powdered milk in a warehouse in Siberia’s city of Tomsk, and in Russia’s Far East, in the Khabarovsk region, over [...] continue reading the breaking news

We can’t win Afghanistan war - Commander

The public should not expect “a decisive military victory” in Afghanistan, Britain’s most senior military commander in the country warned today.Brigadier Mark Carleton-Smith said the aim was to reduce the uprising to a level at which it could be managed by the Afghan army and made clear that this could involve talking to the Taliban.It [...] continue reading the breaking news

FM: Iran will never halt uranium enrichment

TEHRAN, Oct. 5 (Xinhua) — Iran’s Foreign Minister Manouchehr Mottaki said on Sunday that Iran will never halt uranium enrichment even if the West guarantees its need for nuclear fuel, the official IRNA news agency reported. Mottaki made the remarks at a joint press conference with his visiting Venezuelan counterpart Nicolas Maduro. “They [...] continue reading the breaking news

French Foreign Minister: Israel will hit Iran nuke sites

A nuclear weapon will not give Iran ‘immunity’ from an Israeli strike, Kouchner warnedJERUSALEM (AFP) - Visiting French Foreign Minister Bernard Kouchner warned that Israel would strike archfoe Iran before it was able to develop nuclear weapons, in comments published on Sunday.“I honestly don’t believe (a nuclear weapon) will give any immunity to Iran,” Kouchner [...] continue reading the breaking news

EU and US block IAEA Israel resolution

The International Atomic Energy Agency conference of 145 nations criticizes Israel for refusing to put its atomic program under monitoring. Israel is known to have nuclear arms, but has a “no tell” policy on the issue.However, Israel managed to evade a vote to link it to nuclear proliferation in the Middle East.Chief Iranian delegate to [...] continue reading the breaking news

World economic crisis: France moves into recession

The French premier, Francois Fillon, today warned that the world was “on the edge of the abyss” as his country moved into an official recession.Fillon’s comments, blaming an “irresponsible” financial system, came as the Dutch government seized control of bancassurer Fortis’s Netherlands operations in a €16.8bn (£13.06bn) deal greed with the Belgian and Luxembourg authorities.The [...] continue reading the breaking news

Financial Crisis: Fortis’ Dutch assets are nationalised

The Dutch operations of Fortis, Europe’s largest victim of the credit crisis, have been nationalised in a €16.8bn (£13bn) deal aimed to calm investors in the troubled banking and insurance group.Fortis is Europe’s largest victim of the credit crisis Photo: AFP The Netherlands government stepped in to take over the assets, including buying Fortis’ [...] continue reading the breaking news

What You Could Get for $700 Billion

The US Congress is going to take another stab at passing the gigantic bank bailout package on Friday. But how much money are we talking about? SPIEGEL ONLINE gives you an idea. $700 Billion. What else could be done with all those zeros? We have some ideas. (AFP)Money makes the world go round — and [...] continue reading the breaking news

Prof. Feldstein: The bailout bill doesn’t get at the root of the credit crunch

The Problem Is Still Falling House PricesA successful plan to stabilize the U.S. economy and prevent a deep global recession must do more than buy back impaired debt from financial institutions. It must address the fundamental cause of the crisis: the downward spiral of house prices that devastates household wealth and destroys the capital of [...] continue reading the breaking news

At Least 21 Killed in US Strike in North Waziristan

A US missile strike destroyed a house in a North Waziristan village today, killing at least 21 people according to a senior Pakistani official. Of the 21, a local official said 16 of them foreigners. He also added that the house belonged to two Afghan refugees who settled in the area after the 2001 US [...] continue reading the breaking news

Pakistan president Zardari warns US forces in attacks across border on al-Qaeda

Pakistan will not tolerate any infringement of its territory in the name of the war on terror, president Asif Ali Zardari said today in a clear warning to US forces who in recent months have increasingly crossed the border to kill Taliban and al-Qaeda terrorists.Mr Zardari was making his first major address since being elected [...] continue reading the breaking news

Bush Signs Bailout After House Passage

WASHINGTON — President George W. Bush signed the biggest government intervention in the financial markets since the Great Depression after U.S. House of Representatives lawmakers wary of growing signs of the nation’s economic distress voted Friday in favor of a $700 billion Wall Street rescue package.President Bush is greeted by Treasury Secretary Henry Paulson after [...] continue reading the breaking news

Brazilian Government Largest Illegal Logger in the Amazon

BRASILIA, Brazil, September 30, 2008 (ENS) - A Brazilian government agency that provides land to settlers is the largest illegal logger in the Amazon rainforest and could face criminal prosecution, Environment Minister Carlos Minc said Monday. Minc blamed Institute of Colonization and Agrarian Reform, or Incra, for occupying the top six places on a new [...] continue reading the breaking news

ECB Keeps Rate at 4.25% Even as Recession Looms

Oct. 2 (Bloomberg) — The European Central Bank kept interest rates at a seven-year high today to curb inflation, even after the credit crunch forced governments to bail out banks and increased the likelihood of a recession.ECB policy makers meeting in Frankfurt left the benchmark lending rate at 4.25 percent, as predicted by all 58 [...] continue reading the breaking news

Wachovia faced a silent bank run

Fearing a loss of funding over the weekend, the FDIC forced the sale.10/02/08 Downtown Charlotte skyline showing the Wachovia First Street Campus headquarters project under construction. DAVIE HINSHAW of the Observer from WCNC’s AirStar36 On Friday, with its stock plunging 27 percent, Wachovia experienced a “silent run” on deposits, but the bigger worry for regulators [...] continue reading the breaking news

US cross-border attacks a form of terrorism - PM

Islamabad: Prime Minister Yousuf Raza Gilani yesterday said that attacks by US drones on targets inside Pakistan’s tribal region bordering Afghanistan amounted to “terrorism”.Talking to reporters at his official residence on the first day of Eid, Gilani rebuffed suggestions that the government had not condemned the incursions as forcefully as it should have.“These attacks are [...] continue reading the breaking news

Half of Zimbabwe dependent on aid, says UN humanitarian chief

UN calls for increased farming production to prevent an extra 2 million people becoming reliant on food and medical aidAlmost half the population of Zimbabwe could soon be dependent on food and medical aid, the UN’s humanitarian chief said today.John Holmes, the UN’s under-secretary general for humanitarian affairs, said that around 3 million people were [...] continue reading the breaking news

Life in Zimbabwe: Wait for useless money

At a bank in Harare, Zimbabwe, this week, the police directed customers trying to withdraw their nearly worthless savings. (Associated Press)HARARE, Zimbabwe: Long before the rooster in their dirt yard crowed, Rose Moyo and her husband rolled out of bed. “It is time to get up,” intoned the robotic voice of her cellphone. Its glowing [...] continue reading the breaking news

Why Paulson has not explained the real purpose of the bailout to the American people

Related:“An open, competitive, and liberalized financial market can effectively allocate scarce resources in a manner that promotes stability and prosperity far better than governmental intervention,” Paulson said 18 months ago.Treasury Secretary Henry Paulson declared that the current turmoil in markets and financial institutions ultimately will “make things better.” (September 15, 2008)The mystery has been solvedFor [...] continue reading the breaking news

The Elephant in the Room: Credit Default Swaps

Studies show that people often fear the wrong things. We are terrified of things which probably won’t hurt us, but blissfully unconcerned with things that might really kill us (see this, this and this). So we put a tremendous amount of energy into solving non-problems, and get blindsided by things that we don’t know about [...] continue reading the breaking news

Satellite-Surveillance Program to Begin Despite Privacy Concerns

WASHINGTON — The Department of Homeland Security will proceed with the first phase of a controversial satellite-surveillance program, even though an independent review found the department hasn’t yet ensured the program will comply with privacy laws.Congress provided partial funding for the program in a little-debated $634 billion spending measure that will fund the government until [...] continue reading the breaking news

EU to introduce ‘virtual strip searches’ at airports by 2010

Digital body scanners which leave little to the imagination will be used by airport security on passengers travelling across the European Union within two years. The new imaging technology creates an image of an unclothed body which privacy critics argue ‘amounts to a virtual strip search’ Photo: PAAccording to a draft European Commission regulation, [...] continue reading the breaking news

Belgian, Dutch Central Banks Seek Solution for Fortis

Sept. 28 (Bloomberg) — Discussions between European, Dutch and Belgian officials on the future of Fortis, Belgium’s largest financial-services firm, carried into the evening as they sought a “solution” for the beleaguered bank.Dutch central bank chief Nout Wellink and Finance Minister Wouter Bos went to Brussels for talks with the Belgian government and regulators. European [...] continue reading the breaking news

Rep. Michael Burgess: “We Are Under Martial Law”

Rep. Michael Burgess (R-TX) reports from the floor of the House that the Republicans have been cut out of the process and called unpatriotic for not blindly supporting the fraudulent bailout. He says the only debate has been about what talking points to use on the American people. The most ominous revelation is when he [...] continue reading the breaking news

September 15, 2008 - Bush: Economy strong enough to handle turmoil

How can anyone trust Bush and Paulson with a $ 700.000.000.000 bailout?They either lie every time they open their mouth or they have set a new world record for unlimited ignorance.__________________________________________________________________________WASHINGTON -The Bush administration signaled strongly today that troubled Wall Street should not expect more rescues from Washington.Treasury Secretary Henry Paulson declared that the current [...] continue reading the breaking news

The $55 trillion question

The financial crisis has put a spotlight on the obscure world of credit default swaps - which trade in a vast, unregulated market that most people haven’t heard of and even fewer understand. Will this be the next disaster?(Fortune Magazine) — If Hieronymus Bosch were alive today to paint a triptych called “The Garden of [...] continue reading the breaking news

Senate May Try to Revive Financial-Rescue Legislation

U.S. Senator Christopher Dodd, chairman of the Senate Banking Committee, left, and Senator Judd Gregg, a Republican from New Hampshire, speak to reporters at the U.S. Capitol in Washington, Sept. 29, 2008. Photographer: Jay Mallin/Bloomberg NewsSept. 30 (Bloomberg) — The U.S. Senate will try to salvage a $700 billion financial-rescue package after the measure was [...] continue reading the breaking news