Nothing Learned In A Decade

A decade ago one of the worse financial crisis hit the world…..a crisis that could have been avoided….a sadly nothing has been learned from this collapse…

Ten years ago this month, the French bank BNP Paribas decided to limit investors’ access to the money they had deposited in three funds. It was the first loud signal of the financial stress that would, a year later, send the global economy into a tailspin. Yet the massive economic and financial dislocations that would come to a boil in late 2008 and continue through early 2009 – which brought the world to the brink of a devastating multi-year depression – took policymakers in advanced economies completely by surprise. They had clearly not paid enough attention to the lessons of crises in the emerging world.

Anyone who has experienced or studied developing-country financial crises will be painfully aware of their defining features. For starters, as the late Rüdiger Dornbusch argued, financial crises can take a long time to develop, but once they erupt, they tend to spread rapidly, widely, violently, and (seemingly) indiscriminately.

Source: The Lost Lesson of the Financial Crisis by Mohamed A. El-Erian – Project Syndicate

With no lesson learned then this will repeat itself…..only a matter of time.


How To Ruin An Economy

WE hear a lot about the situation in North Korea and Asia…..there have been many articles written about just what would happen if all these words come pushing and shoving.

But has anyone thought of the consequences to the economy?

Could this be more of a problem that the flying of bullets and missiles?

Finally, someone is looking at the situation in a realistic way.

Full marks for timing, Mr President. Last week marked the 10th anniversary of the start of the biggest financial crisis since the Great Depression, making it an appropriate moment for Donald Trump to threaten North Korea with obliteration.

One of the few achievements Trump can point to in his first six months in office is that shares on Wall Street have been steadily rising since his election victory last October. The “fire and fury” remark and the inevitable counter blast from Kim Jong-un gave the markets pause for thought. But not much more than that.

Source: How Trump v Kim can wreck the world economy without a shot being fired | Larry Elliott | Business | The Guardian

There is always more to a problem than what we hear on the evening news….that is mostly speculation and sensationalism.

We need all aspects of the situation/solution but instead we are fed only that which they want us to know or consider.

I’d put Bill ‘in charge of revitalizing the economy’

Oh Crap!

I have never heard 9 more terrifying words uttered.  It sent a shiver up my spine.

These words were spoken by candidate Hillary Clinton when asked what job would she have for her husband if she is elected…..

Democratic presidential front-runner Hillary Clinton is beginning to hint at what role her husband, former President Bill Clinton, could have in her administration if elected president.

At a campaign stop in Fort Mitchell, Ky., Clinton said her husband would be “in charge of revitalizing the economy.”

Clinton said something similar at a campaign event in early May, saying she would bring him out of retirement to create jobs.

“He’s got more ideas a minute than anybody I know,” Clinton said. “Gotta put people back to work and make it happen. So we’re going to give it all we’ve got, absolute full-in 100 percent effort, because I worry we won’t recognize our country if we don’t do this.”

Now I know she wants history to be kind to her hubby but I do not have to be……Bubba’s signature policy NAFTA did more to kill the US manufacturing base than any policy before and his insistence that Glass-Steagall be repelled is what let banks go batcrap crazy that caused the economic collapse in 2007.

All I can say is that she is praying that the American voter has the attention span of a gnat and that they have the memory of a puppy.

People please before you vote for Clinton do a little reading or research and see what we got with the first Clinton in office……none of it is pretty.

Please do not let it happen again.

Will It Happen Again?

Just a little FYI for my readers…….

Remember back to 2007…..that was the year that the economy dropped like a rock…..and the housing market lead they way…..and we have been clawing back ever since……lots of lost money and lots of anger by the people of this country.

The president and the Congress worked hard (sorry that is the wrong word but for the sake of sanity I will let it go) to make sure that this type of crash never happens again… you believe that? (then I have a bridge I would like to talk about)…..

Here are some other troubling anecdotal signals on the housing market:

1. A major financial website recently ran a guide to the best cities to “flip” houses in. (I don’t want to encourage the behavior.) Real estate speculation via house “flipping” was another early sign of trouble ahead.

2. A few days later, news arrived that home prices in the Bronx had shot up by an astonishing 30% in the first quarter. Crazy advances in home values were, a decade ago, also a signal of trouble ahead.

3. Ads, then as now, were running on TV for “quick mortgages.”

All of these signals raise a serious question: Are we getting closer to another housing meltdown that will once again damage your investment portfolio?

Source: The seeds of the next housing crisis have been planted – MarketWatch –

Here we go again sports fans……

Hey A/holes, Better Do What The Saudis Say!

15 years after the fact the attacks on 9/11 are still making the news.  But the “news” has moved from the Congress inaction on the first responders bill to the country that may be at the heart of the attacks….Saudi Arabia.

There is a major story brewing about some of the pages that have taken out of the official report….28 of them to be exact.

It appears that the US may be covering up the extent of Saudi in the attacks of 9/11……not a story that the media is willing to cover….now ask yourself why…..but more on this situation…..

This is from an article in the NY Post….now take it at what it is worth for some think that it is nothing more than a scandal sheet and a rag…..

In its report on the still-censored “28 pages” implicating the Saudi government in 9/11, “60 Minutes” last weekend said the Saudi role in the attacks has been “soft-pedaled” to protect America’s delicate alliance with the oil-rich kingdom.

Actually, the kingdom’s involvement was deliberately covered up at the highest levels of our government. And the coverup goes beyond locking up 28 pages of the Saudi report in a vault in the US Capitol basement. Investigations were throttled. Co-conspirators were let off the hook.

Source: How US covered up Saudi role in 9/11 | New York Post

Apparently Obama has been summoned to the Kingdom and the “official” report is that the meeting is about regional security…..sorry I do not buy that…how about you?

Okay let’s say that the official pages are released….then the question would be….”what can the Saudis do to the US?”

I am so glad you asked……

How many times have you heard the mental midgets rant and rave about the debt that the Chinese own and how bad it would be if they decided to act on our debt….how many times?

It is true that the Chinese own a bunch of our debt…..but they are not alone.

Did you know that the Saudis own about $750 billion….. that is billion with a “B”…..?

Okay but what of it?

Saudi Arabia is threatening to sell $750 billion worth of American assets if Congress passes a bill that could lead to it being tried for the Sept. 11 attacks, the New York Times reports. According to RT, the bipartisan bill, which passed the judiciary committee in January, would tweak the 1976 Foreign Sovereign Immunities Act, nullifying the immunity granted to some countries when terror attacks in the US are involved. If passed, the bill could allow the families of Sept. 11 victims to bring the Saudi royal family and Saudi charities, who they believe funded the attacks, to court. Saudi Arabia claims it would need to sell its US assets if the bill is passed, lest the US government freeze them. Some economists are skeptical the Saudi government would follow through on the threat, as it would destroy its economy.

The Obama administration, warning it could lead to legal retaliations by other countries, has been trying to stop Congress from passing the bill. It’s a move that’s upsetting some families of Sept. 11 victims. “It’s stunning to think that our government would back the Saudis over its own citizens,” the Times quotes a woman whose husband died in the World Trade Center as saying. Meanwhile, Obama is also deciding whether or not to declassify 28 pages of a 2002 report allegedly containing information tying Saudi officials to the Sept. 11 attacks, Fox News reports. Both Bush and Obama have said those pages would be harmful for national security, but others say the government is trying to hide the involvement of a longtime ally.

The Obama admin is using the usual reason……national security as a reason for the pages to remain classified.  So why would the truth be dangerous?

The Senate bill is intended to make clear that the immunity given to foreign nations under the law should not apply in cases where nations are found culpable for terrorist attacks that kill Americans on United States soil. If the bill were to pass both houses of Congress and be signed by the president, it could clear a path for the role of the Saudi government to be examined in the Sept. 11 lawsuits.

Obama administration officials counter that weakening the sovereign immunity provisions would put the American government, along with its citizens and corporations, in legal risk abroad because other nations might retaliate with their own legislation. Secretary of State John Kerry told a Senate panel in February that the bill, in its current form, would “expose the United States of America to lawsuits and take away our sovereign immunity and create a terrible precedent.”

National security……one of those dog whistle slogans like “political correct”…..that conjures up visions of gloom and doom.

So are the Saudis bluffing?……Can the US take that chance?

Now why would you think that Obama has gone to Saudi Arabia…..( I have heard he packed his reliable knee pads)…..

Iraq: If Only We Had The Money

It is well known that Iraq is fighting a horrible battle with ISIS for control of the country……there are many problems encountered like the cost of the war, money for rebuilding infrastructure, etc…..and so far their oil production even with the war raging is up for FY 2015 so far……

Iraq’s crude oil production climbed to an all-time high of 4.18 million barrels a day in July, according to statistics from the International Energy Agency (IEA).

This was up from the 4.15 million bpd produced in June.

The southern oilfields accounted for exports of 3.06 million bpd, up about 40,000 barrels from June.

Then there is the cost of 36 American war planes scheduled to be delivered to Iraq in the very near future……

Lockheed Martin Corp this week will deliver the first of 36 F-16 fighter jets to Iraq, marking what Baghdad‘s envoy to the United States called a “new chapter” in his country’s ability to defend its vast borders with Iran and other neighbors.

Iraqi Ambassador Lukman Faily will travel to Lockheed’s Fort Worth, Texas, plant on Thursday for a ceremony at which Lockheed and the US government will formally deliver the first F-16 to Iraq.

Baghdad has also signed military contracts with Russia and the Czech Republic, among others, and has said it will not be able to fully defend its airspace until 2020.

Iraq also plans to buy Boeing Co Apache helicopters and other weapons from the US government as it assumes responsibility for its own defense and counterterrorism efforts.

Faily said the US government appreciated the urgency and scale of the challenge that Iraqi is facing given continued and mounting strife with insurgents.

(Who is flying these planes since the Iraqi Air Force is damn near non-existent?)

All that makes perfect sense….Iraq is trying to buy its way to success against ISIS….but then a recent development made me a bit apprehensive…..

It appears that Iraq may be near to bankrupt…….

Iraq’s ability to fight Islamic State extremists who control roughly a third of the country is hampered by a financial crisis that’s left the Baghdad government operating “hand to mouth,” Iraqi Ambassador Lukman Faily warned this week.

The inability to pay salaries on time to the soldiers and militiamen fighting the Islamic State, also known as ISIS or ISIL, has hurt morale and hindered progress in operations to retake key hubs that were captured by the jihadists, Faily said in an interview Thursday. And belt-tightening measures such as consolidating government ministries threaten to exacerbate ethnic and sectarian tensions by upsetting the delicate power-sharing quota system that’s been in place since the U.S.-led occupation authority took charge following the invasion of 2003.

If Iraq is running production at all time highs then why is it in so much financial trouble?  My guess…..the PSAs.  Production Sharing Agreements (PSA)…..a way for oil companies to screw the host country out of a share of the profits… other words oil companies among others are leading the way to Iraqi bankruptcy.

In case you would like more info on the PSAs….I covered it back in 2007….

Source: Who Gets Iraq’s Oil? | In Saner Thought

Ain’t capitalism grand?