The FT reports that US legislators have reached “fundamental agreement” on the Bush administration’s $700bn rescue plan: Hans Jorg Rudloff, Barclays Capital chairman, said: “Anyone looking at the money markets would come to the conclusion that we are one minute before a terminal heart attack. Therefore the rescue package will […]
Read MoreBusiness
Comment on business today: see also www.ambrielconsulting.com
FT.com: Banks fall despite short-selling ban
The FT reports* on the continuing sale of financial firms’ securities: A recent ban on short selling failed to halt the sell-off in the financial services sector in London on Tuesday as doubts about the effectiveness of a proposed $700bn US government rescue plan grew. Details of the plans for […]
Read MoreLew Rockwell: “Understanding the Crisis” and “The Crisis Book Kit”
Lew Rockwell introduces the surprising simplicity, fascination and usefulness of a study of money, and points to mises.org’s
Read MoreMises.org: “What’s Behind the Financial Market Crisis?”
As a result of the bailouts and the socialization of the mortgage agencies, the financial system is now fully infected with moral hazard. The disastrous effects of these government interventions will show up soon. The major task of bringing the capital structure in order is still ahead and more pain […]
Read MoreA Marxist comes out
John Cruddas MP at The Guardian: The future demands an active state redistributing wealth to balance a dysfunctional economy – the Labour Party’s founding principle. As I have written, our economic system has been subject to too much of the wrong state intervention, so capitalism cannot be blamed for a […]
Read MoreLloyds TSB and HBOS merge
The Guardian: A £12bn takeover of Britain’s biggest lender, HBOS, failed to halt the deepening crisis in world financial markets last night, as a wave of fresh speculation on global stock markets saw two of Wall Street’s most prestigious investment banks targeted as the latest victims of the credit crunch. […]
Read MoreFT.com: Lex on the AIG rescue
Lex reports on AIG’s rescue: AIG was not too big to fail, but too connected. Bankruptcy would have in effect cancelled the debt insurance that AIG provided, and triggered emergency capital raisings from counterparties around the world. The Fed’s rescue is on punishing terms, AIG must repay the $85bn loan […]
Read MoreLewRockwell.com: The Fed’s Failure
The Fed is making three kinds of bad loans. First, the Fed is lending to banks that are in bad shape and need the funds badly. They are simply bad risks. If the Fed were a profit-maximizing banker, it would not make such loans, throwing good money after bad. The […]
Read MoreFT.com: “AIG has ‘a day’ to stay afloat”
According to the FT: AIG, the troubled insurer that sits at the heart of the financial system, has one more day to come up with the capital to stay afloat, according to David Paterson, New York governor. … Asked how much time he thought AIG had, Mr Paterson replied: “I […]
Read MoreFT.com: “AIG forms keystone of financial system”
According to the FT: The head of equities at one of the UK’s biggest investors said the repercussions should AIG fail were “potentially bigger than Lehmans. It is too big to go bust. If it does, we will be eating baked beans out of a tin.” Alarmist perhaps, but the […]
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![😡 A wise building site carpenter once said to me,
🗣️”A Labour government is the worst kind of government for the working man [and woman].”
🇬🇧 True then. True today. We battle on.](https://www.stevebaker.info/wp-content/uploads/2024/05/442413775_18432903037051538_3387178564604183858_n-320x320.jpg)
![😡 A wise building site carpenter once said to me,
🗣️”A Labour government is the worst kind of government for the working man [and woman].”
🇬🇧 True then. True today. We battle on.](https://www.stevebaker.info/wp-content/uploads/2024/05/442413775_18432903037051538_3387178564604183858_n.jpg)
