The rally in equity markets has come to a sudden stop with global markets down 5% in two days after a sharp rally off the low for this bear market on 8/3/2009.
In the 1929 crash the Dow Jones fell 48% in two months only to recoup 50% of these losses in the following five months. [...]
In a classic asset stripping exercise the government has broken up the Dunfermline Building Society. Acting as asset strippers they have sold off the good parts to the Nationwide and given the toxic parts to us the public.
The old mutual business of deposits with mortgages backed by these deposits has been bought by Nationwide – [...]
The £250bn insurance of Lloyd’s toxic assets is another con that the tax payer will pick up billions of pounds of losses for. Lloyd’s are paying for the insurance by printing £16bn worth of shares and selling them to the government. They then give the government back this money to pay for this insurance! In [...]
The government’s announcement of another £75bn to be spent on buying government and corporate bonds is in effect a bank bailout right across the banking sector.
The money is being printed and will used to buy these bonds from next Wednesday. But the only organisations that hold these bonds are bank and pension and insurance funds.
Normally [...]
Darling in an interview in today’s Daily Telegraph announced the government is to spend up to £200 bn on buying back government debt. This in effect printing money to try and drive interest rates down by pushing the yield on government bonds down by pushing their price up and pumping cash into the system so [...]
Eastern Europe has borrowed $1.7 trillion abroad, much on short-term maturities. It must repay – or roll over – $400bn this year, equal to a third of the region’s GDP. This will be difficult because most lenders wish to rein in high risk debts and need the loans to supplement their diminishing capital.
Not even Russia [...]
