America's Financial Crisis

[yerazhishda]

Re: America's Financial Crisis

The continued Bolshevik-style nationalization of America...we're in deep sh*t here people; this is only the beginning.

************

With Fed’s $85 Billion Loan, A.I.G. Starts to Calculate a Measured Sell-Off

September 18, 2008
By MARY WILLIAMS WALSH

A day after the Fed’s stunning takeover of American International Group, its new managers began contemplating a breakup of the insurer’s far-flung empire and selling it off in coming months.

They are not under pressure to act quickly and settle for fire-sale prices. The purpose of the Fed’s $85 billion loan, after all, was to buy time for A.I.G. so it would not have to dump its healthy companies in a chaotic market. Even so, A.I.G. is borrowing the Fed’s money on expensive terms, and it must pay it off within two years. So A.I.G. also has an incentive to sell off subsidiaries and pay off its costly loan early.

Many questions remain to be answered about the process. The Fed oversees the banking system and has no experience dismantling a gigantic insurance company with global reach.

A committee of state insurance regulators is being formed to oversee the sale of A.I.G.’s life and property-casualty insurance companies, considered the xxxels in its crown.

source: New York Times

[North Pole]

Re: America's Financial Crisis

USA is going down big time....

Morgan Stanley To Be Sold To Communist China?

Morgan Stanley Said to Be in Talks With China's CIC (Update1)

By Christine Harper

Sept. 18 (Bloomberg) -- Morgan Stanley, the second-biggest independent U.S. securities firm, may sell a larger stake to China Investment Corp. and is in talks about a possible merger with Wachovia Corp., a person familiar with the matter said.

Morgan Stanley pared its loss on the New York Stock Exchange after the person said China's state-controlled fund may buy as much as 49 percent of the New York-based investment bank. The person declined to be identified because the talks aren't public and may end in no agreement.

Morgan Stanley, led by Chief Executive Officer John Mack, and Goldman Sachs Group Inc., the biggest U.S. securities firm, tumbled the most ever yesterday as the deepening credit crunch fueled concern their funding sources are drying up. Morgan Stanley shares plunged 42 percent this week as Lehman Brothers Holdings Inc. filed for bankruptcy protection and Merrill Lynch & Co. sold itself to Bank of America Corp.

``John Mack certainly needs the stability of the core deposit base at Wachovia at this point, so I can see some of the broad outlines of such a deal, but I think investors would greet that one with some incredulity,'' Nancy Bush, founder and analyst at NAB Research LLC, said in an interview on Bloomberg Television. ``This is a very extraordinary time.''

Morgan Stanley's shares fell $1.46, or 6.7 percent to $20.29 in New York Stock Exchange composite trading at 10:14 a.m., after falling as much as 14 percent earlier today. Wachovia rose 8.4 percent to $9.89.

Gao Xiging in U.S.

China Investment Corp. bought a 9.9 percent stake in Morgan Stanley in December after the firm reported a quarterly loss. CIC's president, Gao Xiging, is in the U.S. with Wei Christianson, who runs Morgan Stanley's business in China, the Financial Times reported today.

Mack addressed employees this morning in a crowded meeting in New York, saying the firm's earnings and balance sheet were sound, according to people who attended or watched the firm-wide video broadcast. He said Morgan Stanley was in stronger shape than Lehman or Bear Stearns Co., which was forced to sell itself to JPMorgan Chase & Co. earlier this year.

Two of the attendees, who declined to be named because they weren't authorized to speak to the press, said he sounded upbeat and confident.

Mark Lake, a spokesman at Morgan Stanley in New York, declined to comment.

READ MORE -- http://www.bloomberg.com/apps/news?p...eJw&refer=news

[North Pole]

Re: America's Financial Crisis

The Almighty Ruble

Source: http://www.nytimes.com/2007/08/08/bu...=worldbusiness

Buy Rubles.

The Central Bank of the Russian Federation (Bank of Russia)

External and Public Relations Department

12 Neglinnaya Street, Moscow, 107016 Russia; tel: (7 495) 771 4417, 771 4669; fax: (7 495) 771-4932

http://www.cbr.ru/eng/pwe.aspx?file=/eng/press/080918_112721eng_res.htm

http://www.cbr.ru/eng

[North Pole]

Re: America's Financial Crisis

Here's what Ron Paul said during CNN interview:

"We cannot afford 700 billion dollars in protecting an Empire. It has to come to an end because the truth is we are flat out broke and we have to borrow every single penny to fight that war from the Chinese."

Source: http://youtube.com/watch?v=EF37-9OGblw


Fannie and Freddie taken onto US government books

”Meanwhile, the federal debt will grow at an unsustainable rate, which means more borrowing from China, more borrowing from Japan, and more borrowing from oil exporters like Saudi Arabia,” Conrad said.

http://www.ft.com/cms/s/0/e30472a6-7e79-11dd-b1af-000077b07658.html

[Armenian]

Re: America's Financial Crisis

You know the worrying proposition that comes with a potential US collapse, is the starting of conflicts much more dangerous than Iraq and Afganistan. America may become desperate, and when such giants fall they fall hard and they crush others as well. America has more conventional firepower then probably the rest of the world. America has enough nuclear capacity to blow up the world 3 times over. Dangerous times.

Excellent point, Skhara. I have been saying this in my posts. Their fear of loosing their wealth and power will force them to react in violent and unpredictable manner. The wars in Iraq and Afghanistan are inherently tied to their desire to protect their global hegemony. But that was only the start.

I just found this.

REAL REASON WHY USA & ISRAEL WILL ATTACK IRAN http://www.youtube.com/watch?v=EEpp9...eature=related

[jgk3]

Re: America's Financial Crisis

that was a great video, really makes it clear as day doesn't it? Very simple message to pass around too.

[yerazhishda]

Re: America's Financial Crisis

Really great video. Just shows us how little we understand about the workings of geopolitics. I think the American people sense that it was for "oil", but they don't get that it is bigger than some oil tycoon getting a couple more billion dollars. It's about the life or death of the entire American Empire.

[Armenian]

Re: America's Financial Crisis

It's about the life or death of the entire American Empire.

That's the whole point. It does not have to be this way. We dont need a xxxxing empire. Empires live big and they die big. If this nation down sizes, tightens its belt, eats less, wastes less, purchases less, lives more simply, recognizes that the financial system is utterly corrupt, recognizes that US politicians don't serve the people they serve special interests, recognizes that we are fighting wars overseas to feed a mouths of a select few, recognizes that our relationship with nations like Israel and Saudi Arabia are liabilities, recognizes that the trillions spent of wars and dictators overseas can be better spent in the nation, recognizes that the nation needs alternative energy... we might just pull through this mess.

[Armenian]

Re: America's Financial Crisis

The situation in the US may be bad but that doesn't mean other places are enjoying great prosperity.

You are living in a dream world. Certain Asian nations and Russia are indeed enjoying great prosperity today. Great prosperity does not mean having a shopping mall in every xxxxing town, nor does it mean getting 10,000 television channels in your home 24 hours a day... China is the global economic superpower. India is the new silicone valley. And Russia is simply flooded in cash. However, Russia's real wealth is the fact that it essentially owes no money to anybody! Russia also controls the largest amounts of the globe's natural resources. Give Russia and China a couple of decades and they will most probably have a living standard better than ours in the West. There are three places on earth today that are enjoying great prosperity - Russia, China and Gulf States and not too far off behind them is India. And there are two places going into decline - Western Europe and the US.

The entire world is in very shaky situations and I wouldn't be surprised if for example China under goes a MASSIVE restructuring in the coming decades.

The entire world is in a shaky situation is because the entire world relied on the US dollar for many decades. With the US dollar in decline, yes the world's financial system has to readjust. In the aftermath of this global readjustment, and if American politicians don't wake up, the US will be a third world nation.

Personally I am not too pessimistic on the US ... at least no where near what these rather biased views in this thread try to paint.

The great majority of the top financial experts and as well as political experts will 'strongly' disagree with you, as would I and many other here. You are still in living in the hype. You are still not directly effected by the current situation. By the time the inevitable arrives it will be too late for individuals like you. Gradually, the living standard will drop here. Social services will be cut. The nation's infrastructure will deteriorate. There will be high unemployment. Thee will be high taxes. There will be lower wages. There will be a high cost of living. There will be the inability for most people to purchase homes. The nation's crime rate will surely increase. Societal tensions will increase. There will be an increase in health problems. There will be a further decline in education. There will be more bloody and costly wars... In my opinion, the aforementioned is a 'best case scenario' for the US in the coming decade or two.

If you are wealthy, or if you come from a wealthy family that knows how to manage their finances, you may not be greatly effected by any of the above. However, the vast majority of Americans (fat, stupid, and living in debt) will be gravely effected by the coming economic storm.

The main hurt in the US is the housing market which will inevitably bounce back. There are sectors that are in huge troubles (for example automobile and air travel) and one would have to live under a rock not to realize that manufacturing jobs have been moving to china. But much like the "tech outsourcing" and the "oh everything is going to India" ended up being mostly an empty scare, I think the manufacturing will also correct itself over time. There was a time where "made in USA" really said something about the quality ... and the way China has been going, I don't think it'll be long till we see similar days again. After all, people will only tolerate so many dead babies and pets before taking a second look at China and reevaluating things a bit

OK, you're sounding like a redneck. I have been through this path with you before. I just suggest you 'read' what I have posted here (they are mostly from reputable American sources) and give it some thought.

[Anoush]

Re: America's Financial Crisis

Excellent point, Skhara. I have been saying this in my posts. Their fear of loosing their wealth and power will force them to react in violent and unpredictable manner. The wars in Iraq and Afghanistan are inherently tied to their desire to protect their global hegemony. But that was only the start.

I just found this.

REAL REASON WHY USA & ISRAEL WILL ATTACK IRAN http://www.youtube.com/watch?v=EEpp9...eature=related

Thank you Armenian for the video. Two of the largest financial institutions here in the US such as Merryll Lynch their dollars went down on the market to some crazy numbers like 17 cents. We're headed into depression and it's scary. It would be even more scary to go into WWIII. I feel very bad for our children.