Posts Tagged ‘crisis’

Bloomberg has unveiled that the Fed  “Pumped” liquidity for 770 BILLIONS (*), to the American Banks, go get over the financial crisis. That is, they pushed a button and created value from thin air. They did it covertly, in a way that wouldn’t set the markets on High Alert mode. So, I’m wondering if, instead of giving all that money to the banks, they gave it to the People? After all, It’s the PEOPLE that can’t pay their mortgages, not the banks, right?.

Now, in America there are more or less  528 millions people. So it will be about $15000 each. Not much.

But this line of thought doesn’t work very well, because we are giving the money even to the newborn. So, let’s move the thought to the FAMILIES, that are about 115 millions. That will bring the amount to roughly $67000 per family. Better already. With $67000, a family can start a business, work and create jobs… Restarting the economy in the process.

If we restrict the “Gift” to only the families in trouble, or potentially in trouble because involved in the damn subprime, then you will understand that the problem would have been solved altogether. Moreover, everybody would have a home, no foreclosures, people would have been working and happy.

Yep… But doing things this way would have caused the collapse of several banks

(*): From Milano Finanza:

In the latest Global Financial Stability Report, the International Monetary Fund updated to $410 Billions the total amount of loss of the world financial institutions in the 2007-10 period. The losses are relative to the total of financial institutions.

 « Nel recente Global Financial Stability Report, il Fondo Monetario Internazionale ha aggiornato a 4.100 miliardi di dollari l’entità delle svalutazioni del totale delle istituzioni finanziarie su scala mondiale per il periodo 2007-10. Le perdite si riferiscono al totale delle istituzioni finanziarie.»

Well, if the ALL THE FINANCIAL INSTITUTIONS lost $410 Billions… Where did the $700 Billions that the Fed gave to the banks IN THE USA ONLY, go? In other words, WHO THE HELL STOLE $360 Billions???

WHERE DID THOSE $360BIL GO?

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WASHINGTON — A minuscule tax on financial transactions proposed by congressional Democrats would raise more than $350 billion over the next nine years, according to an analysis by the Joint Tax Committee, a nonpartisan congressional scorekeeping panel.

The analysis was sent Monday to the offices of Sen. Tom Harkin (D-Iowa) and Rep. Peter DeFazio (D-Ore.), the lawmakers who proposed the tax, and provided to The Huffington Post.

The Wall Street Trading and Speculators Tax Act would impose a tax of 0.03 percent on financial transactions, meaning that longterm investors would barely notice it, but traders who move rapidly in and out of positions would feel its sting and, the authors hope, reduce the volume of their speculation in response.

The European Union is pressing forward with a financial transaction tax, though it is encountering some resistance from the United Kingdom, the financial center of Europe.

In order to be effective, the tax would need to be implemented in most major industrial countries where trading is done.

Some believe that the global nature of the Occupy Wall Street movement will boost the chances of the transaction tax being signed into law. While the movement has been criticized for lacking specific demands, protesters have voiced their support for a “meaningful” tax being placed on Wall Street trading.

Specific solutions to economic inequality are not in short supply. What’s been missing for years has been the political will to implement them.

“Occupy Wall Street has just reminded a large majority of the American people that our economy was destroyed by gambling on Wall Street. And that the people who destroyed our economy have been amply rewarded and not prosecuted,” DeFazio told HuffPost.

The tax would raise $352 billion between January 2013 and December 2021. It faces stiff opposition from congressional Republicans, nearly all of whom have taken a pledge not to support new taxes, as well as ambivalence from some Democrats who rely on Wall Street cash to fund their campaigns

From the Huffington Post

I always loved this song, and now, guys, it’s actual as if it was released today!

Twenty-five years I’m alive here still
Trying to get up that great big hill of hope
For a destination

I realized quickly when I knew I should
That the world was made up of this brotherhood of man
For whatever that means

And so I cry sometimes
When I’m lying in bed Just to get it all out
What’s in my head
And I, I am feeling a little peculiar.

And so I wake in the morning
And I step outside
And I take a deep breath and I get real high
And I scream from the top of my lungs
What’s going on?

And I say: HEY! yeah yeaaah, HEY yeah yea
I said hey, what’s going on?

And I say: HEY! yeah yeaaah, HEY yeah yea
I said hey, what’s going on?

ooh, ooh ooooooooooooooooh
ooh, ooh ooooooooooooooooh

and I try, oh my god do I try
I try all the time, in this institution

And I pray, oh my god do I pray
I pray all sanctity
For a revolution.

And so I cry sometimes
When I’m lying bed
Just to get it all out
What’s in my head
And I, I am feeling a little peculiar

And so I wake in the morning
And I step outside
And I take a deep breath and I get real high
And I scream from the top of my lungs
What’s going on?

And I say, hey hey hey hey
I said hey, what’s going on?

And I say, hey hey hey hey
I said hey, what’s going on?

And I say, hey hey hey hey
I said hey, what’s going on?

And I say, hey hey hey hey
I said hey, what’s going on?

ooh, ooh ooooooooooooooooh ooooooooooooooooh

Twenty-five years I’m alive here still
Trying to get up that great big hill of hope
for a destination
mmh mh

 

GENEVA, Switzerland – Gorka Cruz, thirty-three years old id a Swiss Citizen. Banker.

Nice voice, French accent, and the capacity of making some music, he has become the most known among the Geneva indignados.

With his song “The global economy is about to crash” he is launching a very popular refrain, that is spreading among the oppositors to the financial system.

The guy, even though he worked for four years at Barclay’s Bank, handling Hedge Funds, is a very original man. Every year, he sets aside part of his earnings and goes to India, to spend time in humanitarian activities. The popularity arrived, though, through a YouTube video, which we are showing you, where Gorka, armed with a guitar, predicts the imminent collapse of the system, and end the video by jumping off the Coulouvrenière bridge, in Geneva.

This is not a pessimistic message. Gorka tries to awaken the people, to build a healthier world and, to the “La Tribune de Geneve” who interviewed him, he said “My approach may seem contradictory, but working in a bank does not prevent me from bein critical toward the system. Every employee is just a gear in the machine, and by himself he can’t do much. There is a need of a global awakening of the consciences, to change the World

Oct 22 (Reuters) – Banks cannot rely on taxpayers’ money to recapitalise themselves, Sweden’s Finance Minister said on Saturday ahead of a meeting of EU finance ministers that was due to discuss steps to strengthen the European banking system.

“I think we should not use taxpayers’ money,” Anders Borg told reporters. “The guarantee system alone cannot solve solely the problems. We have to restore credibility with capital.”

European leaders are holding a series of meetings to try to resolve Greece’s worsening debt crisis and its knock-on effects on the European banking system. No decision is expected at a summit on Sunday and a second summit has been scheduled for Wednesday.

EU finance ministers are trying to make the European banking system more resilient to the possibility of a default in Greece and any wider contagion across the continent. EU officials say almost 100 billion euros is required to shore up the region’s banking system. Banks that cannot raise money on the markets will have to turn to national governments, and finally to the European Financial Stability Facility (EFSF).

European banks will be required to increase their core tier one capital ratio to 9 percent to help them withstand losses on sovereign debt, banking sources have said.

Deep divisions between France and Germany over the best way to scale up the euro zone’s bailout facility have prevented agreement on the way forward, but there were signs on Friday that some progress had been made.

German Chancellor Angela Merkel, French President Nicolas Sarkozy and Europe’s top two officials, European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso, will meet late on Saturday to try to break the deadlock before Sunday’s summit.

EU leaders will then try on Sunday to agree a comprehensive plan to resolve the two-year-old debt crisis. A further summit is scheduled for Wednesday, Oct. 26, because no breakthrough is expected on Sunday.

Discussions are expected to include ways to make Greece’s debt mountain more manageable. An analysis by the EU and the International Monetary Fund showed on Friday that private holders of Greek debt may need to accept losses of up to 60 percent on their investments in any credible plan.

“It is pretty obvious we need a substantial haircut for Greece,” Swedish Finance Minister Borg told reporters on Saturday.

Greece’s finance minister welcomed a decision late on Friday by euro zone finance ministers to approve an 8 billion euro loan tranche that Athens needs next month to pay its bills.

“The disbursement of the sixth tranche is an important and productive step,” Evangelos Venizelos told reporters on Saturday. “Greece is not the central problem, now the point is to take more general and more constructive decisions for the euro zone as a whole.”

14 years old. The English teacher asks him to write what “Courage” means to him, and… GOOD BOY!  🙂