"Full Fledged Panic" - World Economic Crisis Moving to a New Stage UPDATE:Euphoric Stocks Bubble While Wages Plummet

[DCon]

Coined by Matt Taibbi writing about Goldman Sachs in a cracking piece in Rolling Stone in 2009:

love this bit

ay you're Goldman Sachs, and Bullshit.com comes to you and asks you to take their company public. You agree on the usual terms: You'll price the stock, determine how many shares should be released and take the Bullshit.com CEO on a "road show" to schmooze investors, all in exchange for a substantial fee (typically six to seven percent of the amount raised). You then promise your best clients the right to buy big chunks of the IPO at the low offering price — let's say Bullshit.com's starting share price is $15 — in exchange for a promise that they will buy more shares later on the open market. That seemingly simple demand gives you inside knowledge of the IPO's future, knowledge that wasn't disclosed to the day trader schmucks who only had the prospectus to go by: You know that certain of your clients who bought X amount of shares at $15 are also going to buy Y more shares at $20 or $25, virtually guaranteeing that the price is going to go to $25 and beyond. In this way, Goldman could artificially jack up the new company's price, which of course was to the bank's benefit — a six percent fee of a $500 million IPO is serious money.

[PaddyJoe]

love this bit

The Rolling Stones article is a brilliant piece of writing. That one piece has done more damage to the GS reputation than anything else in its history

[DCon]

The Rolling Stones article is a brilliant piece of writing. That one piece has done more damage to the GS reputation than anything else in its history

it is. and being in Rolling Stone normalised it. If it was in the FT it would be ignored. Not that the FT would complain about banker theft of course

[IrishPride]

The Rolling Stones article is a brilliant piece of writing. That one piece has done more damage to the GS reputation than anything else in its history

They dont seem to care at all about how they are perceived by the public at large. They just keep doing what they do, ie political donations and government facilitated scamming.

[PaddyJoe]

Looks like Greek referendum is going to be on the 4th December.

[Griska]

Looks like Greek referendum is going to be on the 4th December.

And on the bailout.
No messing around with silly wording about the Euro.

[DCon]

Bernanke blaming Europe for holding the yanks back

• Ben Bernanke: watching the eurozone crisis is frustrating. Fed chair says its "bad luck" that Europe is holding back the US recovery

http://www.guardian.co.uk/business/b...um-debt-crisis

[barrym]

love this bit

Apropos, the insider trading methodology is also used and abused elsewhere in GS, viz our friend Mr Gupta, recently arraigned on charges of same (while he was at GS? I don't remember).

I ask again, why and how is it that Suds is trotted out by the IT (less so recently, to be fair) and RTE (who, it seems, have him out regularly, latest on the referendum....) to tell us what we should, as an nation, be doing, presumably to ensure that the gov pushes a bit of what GS considers as 'business' their way.....

We really are a nation of gobsh1tes who allow ourselves to be abused in this fashion.

Just looked at "The Corporation" here - [ame="http://www.youtube.com/watch?v=xAKr9YqPowQ"]The Corporation - Full Movie - YouTube[/ame] - and heard, of all people, Marian F asking why Papendreou should be vilified for suggesting he ask the people, she must feel emboldened by Dunphy..... and concluded that we'll continue to be shat upon until we get in the streets.....after the budget, I'll wager.

[ang]

Christine Lagarde is warning of a "lost decade" for the Global economy:-

The head of the International Monetary Fund, Christine Lagarde, has warned that the global economy is at risk of being plunged into a "lost decade".

Ms Lagarde said the ongoing debt crisis in Europe has resulted in an uncertain outlook for the global economy.

"There are clearly clouds on the horizon", she said.

http://www.bbc.co.uk/news/business-15649985

[Captain Con O'Sullivan]

Bernanke blaming Europe for holding the yanks back



http://www.guardian.co.uk/business/b...um-debt-crisis

maybe he should have a word with the Fed then about their emergency loans window which was basically underwriting the 'kick the can down the road' philosophy.

Makes a change from the yanks blaming the perfidious Chinese from making and selling cheap imports to the US I suppose. Damn those commies and their keen understanding of the global free market ...

[Ah Well]

And the financial chaos continues ...

The turmoil on world markets intensified today amid fresh fears of an Italian default after the country’s borrowing costs soared to unsustainable levels.

Read more: http://www.breakingnews.ie/business/...#ixzz1dIPOyluD

[morticia]

http://hat4uk.wordpress.com/2011/11/...conomic-front/

Hilarious one from the Slog.... yeah, doom is nigh.

Particularly enjoyed this bit
"Other sources and sites confirmed throughout the day that the markets were unimpressed with the Right’s victory; the Spanish debt premium rose 470 basis points. Thank God the Left didn’t win, otherwise the markets by now would be organising an invasion force armed to the teeth with tactical nukes and napalm.

Mariano Rajoy’s landslide victory gives him a mandate – but only based on the ridiculous expectation that his government will quickly roll out structural reforms to stimulate growth, alongside deeper public spending cuts to rein in the fiscal deficit. If this succeeds, Senor Rajoy will go on to tackle the lesser problems of cold fusion on the sun, and time travel via Italian gelati neutrinos."

[C. Flower]

Alaidi sums up today's news

http://ashraflaidi.com/articles/tack...vency-conc.asp

Today's coordinated central bank liquidity injections coincide with liquidity concerns (USD LIBOR nearing the highs of June 2010 at 0.53%); policy concerns (EFSF & austerity deadlock), geopolitical concerns (storming of UK Embassy in Tehran) and solvency concerns as signaled by implicit (voluntary) default from Greece.

and from the irishwhistleblower

Top central banks move to avoid global liquidity crunch

http://uk.reuters.com/article/2011/1...7AT14520111130

EU monetary chief sees 10 days to rescue euro zone
http://uk.reuters.com/article/2011/1...7AS07Y20111130

S&P downgrades hit bank funding, counterparty cost

http://uk.reuters.com/article/2011/1...7AT0VX20111130

[C. Flower]

Double whammy today of Sovereign states on the point of default (Greece in virtual default, Italy and Spain at the brink) and the world banking system drying up.

http://www.abc.net.au/news/2011-12-0...site=melbourne

The world's biggest central banks have sprung into action to help shield the eurozone and the entire global system from the debt crisis with extra funds for banks, triggering a surge in stocks and the euro.

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the US Federal Reserve and the Swiss National Bank collectively announced "liquidity support to the global financial system".

The decision represents a massive bid to prevent a global depression and serious social conflict 10 days before an European Union summit meeting.

Many banks are being squeezed by the weight of downgraded government debt bonds in their books, raising pressure on them to reduce lending, particularly on foreign markets.

This is a pivotal route for contagion of the eurozone debt crisis to the global economy.
The central banks, which can create their own money, said they would ensure funds were available, explaining that the "purpose" was to "mitigate the effects of such strains on the supply of credit to households and businesses".

There is a downward spiral of high borrowing costs, decreasing liquidity. Hard to see how the printing presses will be able to keep up.

[Dr. FIVE]

You know, if you open any page in this or the domino effect thread you could read it as happening today such is the progress our leaders have made.