Economy

(BBC) – Japan PM Naoto Kan warns of ‘collapse’ under debt pile

Japan is at “risk of collapse” under its huge debt mountain, the country’s new prime minister has said. Read More Here

(NAlert) – ObamaCare’s 150 New Government Agencies – Read More Here

(DowJones) – 2nd UPDATE: Milan Judge Adjourns Derivatives Trial To June 23

A Milan judge adjourned Wednesday a landmark derivatives trial against four international banks accused of fraudulently selling derivatives on a bond by two weeks to June 23.

Judge Oscar Magi, who recently took over the proceedings, also ruled that several parties including dozens of consumer … Read More Here

(NYTimes) – Uncertainty Restores Glitter to an Old Refuge, Gold

It is the resurgent passion of the doomsday crowd, a bet that everything will go wrong. No matter what has you worried, they say, the answer is gold. Read More Here

(CNNMoney) – Vermont to seniors: Return those $250 checks

The federal government is mailing $250 Medicare rebate checks this week, but Vermont is asking its seniors to send the money back to the state. Read More Here

(June 11) – Video: Bob Chapman’s Friday 6/11/2010 Economic Report on Alex Jones Tv

Bob Chapman of The International Forecaster checks in with his regular Friday economic news update. Alex covers the news and takes your calls. Continue reading

Economy

(RussiaToday) – Keiser Report № 46: Social Fury builds up! – Video Link Here

(GoldSeek) – Video: Gerald Celente on Goldseek Radio – Video Link Here

(SOTT) – Are Goldman Sachs and the Megabanks Able to Wipe out an Entire Economy with a Keystroke?

How artificial intelligence and robotrading pose a growing threat to the global marketplace. Read More Here

(BostonHerald) – Frills, not jobs, filling posh IRS digs

The $92 million renovations at the IRS compound in Andover will include a reflecting pool, an art gallery, indoor gardens, a 7,000-square-foot cafeteria and an amphitheater, but it remains unclear what new permanent jobs, if any, will come to the center. Read More Here

(MurrayDobbin) – The Canadian ‘good banks’ myth

The sorry spectacle of Conservative cabinet ministers flying around the world defending banks from a tax to cover their next, inevitable, meltdown is bad enough. What is perhaps worse is that it is being largely justified by the perpetuation of the myth that Canada did not have to bail out its banks.

Wrong. Read More Here

(VancouverSun) – G8, G20 summit security a waste of money, say Montreal anarchists – Read More Here

(AutomaticEarth) – Lent, spent and guaranteed

Ilargi: No, I’m by no means the only one who thinks this thing will not end well.

Let’s start with Gerald Celente of Trend Forecasters: Read More Here

REPOST – (SeekingAlpha) – Video: Hendry – ‘I Would Recommend You Panic’

In this widely watched BBC video, Hugh Hendry of hedge fund Eclectica Management recommends the world panic over the ongoing European debt crisis and then the group debates whether perpetual bailouts and a much longer slowdown are preferable to a real purging of the system and a much shorter recession that would also see major reforms. Video Link Here

(TimesOnline) – Greece urged to give up euro

THE Greek government has been advised by British economists to leave the euro and default on its €300 billion (£255 billion) debt to save its economy. Read More Here

(Express) – WORK UNTIL LUNCH JUST TO PAY TAX

Analysis relating the tax burden to the working day suggests that the average 9-5 worker takes until 1.21pm to cover their tax bill and then spends three hours 39 minutes working for themselves. Read More Here

(WSWS) – Austerity measures throughout Europe

Two weeks ago, European heads of state and the International Monetary Fund reached agreement on a €750 billion rescue package for the euro. Since then, not a day has gone by without the announcement of a new round of draconian austerity measures. Working people are now being ordered to pay the price for plugging the massive holes in public finances that are the result of various rescue measures for the banks and the euro. Read More Here

(ComingDepression) – Sell now warns LA real estate experts amid BP oil spill

“Carolyn Angelette said around 100 clients have canceled summer rentals in Grand Isle, LA. Other clients have postponed plans to buy a home until they see the full extent of oil damage. At this rate, she warns, her Century 21 office will go out of business.”
It is obvious BP will be in litigation for decades with multiple plaintiffs once it is discovered just how much damage this unprecedented disaster has unleashed. It would not surprise me if this catastrophe bankrupts the company. Read More Here

(LATimes) – Lessons of hard times in Vallejo

Since filing for Chapter 9 bankruptcy protection two years ago, this scrappy Bay Area bedroom community has come to symbolize the fiscal troubles — now faced by many cities — that helped push it to the brink: unrestrained spending, out-of-control pension costs and a burst housing bubble. Read More Here

(RussiaToday) – Video: Wall Street Operative Geithner Rebuffed in Berlin on Mission to Make World Safe for Derivatives

On the most important stop of last week’s desperate mission to make the world safe for derivatives, US Treasury Secretary Geithner has been dealt a decisive rebuff. Geithner’s obvious attempt to sabotage the recent prohibition enacted by the German government against naked credit default swaps (among the most toxic of derivatives) was rejected in Berlin on Thursday by German Finance Minister Wolfgang Schäuble. Continue reading

Economy

(MSNBC) – Video: Obamacare Loophole Exposed – Michael Moore – Video Link Here

(ChartingStocks) – Warren Buffet Does Heavy Selling; 13-F Filings Reveal

Billionaire investor Warren Buffet did some heavy selling during the first quarter of 2010. According to the most recent 13-f filing, Mr. Buffett liquidated his entire position health insurers United Health (UNH) and WellPoint (WPT). He dumped his holdings in financial companies Travelers (TRV) and Sun Trust Banks (STI). Read More Here

(PressTV) – Greece blames US for snowballing debts

Greek Prime Minister George Papandreou says he is considering taking legal action against US investment banks for their alleged role in the snowballing Greek debt crisis. Read More Here

(MarketTicker) – The German Government Has Had Enough

If you thought the German government was going to be a lapdog for Sarcozy, or worse, was going to fellate Brussels and the ECB, you got a rude shock today. Read More Here

(MatterhornAsset) – ALEA IACTA EST

Yes this is it! We have crossed the Rubicon and events in the world economy are now likely to unfold in a totally uncontrollable fashion. Clueless governments still don’t understand that it is their ruinous actions that have created a credit infested and bankrupt world. They will continue to prescribe the same remedy that caused the problem in the first place, namely more credit and more printed money. The consequences are clear; we will have hyperinflation, economic and human misery as well as social unrest. Read More Here

(Bloomberg) – Conspiracy of Banks Rigging States Came With Crash

A telephone call between a financial adviser in Beverly Hills and a trader in New York was all it took to fleece taxpayers on a water-and-sewer financing deal in West Virginia. The secret conversation was part of a conspiracy stretching across the U.S. by Wall Street banks in the $2.8 trillion municipal bond market. Read More Here

(LondonTelegraph) – Congress blocks indiscriminate IMF aid for Europe

Europe may have to clean up its own mess after all. The US Senate has voted 94:0 to block use of taxpayers’ money for IMF rescues that make no economic sense or bail-outs for countries like Greece that far are beyond the point of no return.
“This amendment will help prevent American taxpayer dollars from underwriting dysfunctional governments abroad,” said Texas Senator John Cornyn, the chief sponsor. “American taxpayers have seen more bailouts than they can stomach, and the last thing they should have to worry about are their hard-earned tax dollars being used to rescue a foreign government. Greece is not by any stretch of the imagination too big to fail.” Read More Here

(GnosticMedia) – Audio: Hey Wall Street, Naked Short Sell This! An Interview with Dr. Patrick Byrne and co-host, Wall Street whistle blower, Richard Andrew Grove – Audio Link Here

(SeekingAlpha) – $3,000 Gold? Rosenberg Says That May Be Conservative

Although gold bullion is both a commodity and currency, it has lately become the world’s currency of choice, i.e. a vote of no confidence in fiat paper. This is evident in the fact that the gold price has not only just made an all-time high in U.S. dollar terms ($1,249 on Friday), but also in just about every other currency one cares to mention. I illustrated this in a post a few days ago, entitled “Meet the world’s new currency of choice”. Read More Here

(Telegraph) – Higher taxes for a million as George Osborne’s emergency Budget hits investors

More than a million people could be dragged into paying capital gains tax after George Osborne confirmed that he would use his emergency Budget to hit investors. Read More Here

(RawStory) – Bill for Afghan war could run into the trillions

The U.S. Senate is moving forward with a 59-billion-dollar spending bill, of which 33.5 billion dollars would be allocated for the war in Afghanistan.

However, some experts here in Washington are raising concerns that the war may be unwinnable and that the money being spent on military operations in Afghanistan could be better spent. Read More Here

(DowJones) – Euro Plunges To 4-Year Low After German Trade Ban

The euro plummeted Tuesday to a fresh four-year low after Germany announced it would ban certain speculative investments, exacerbating the selling of the single currency as investors run out of alternatives to trade the sovereign debt crisis already roiling the euro zone. Read More Here

(CBC) – Canada comes out swinging against bank tax

Canada launched a full-court press against the idea of a global bank tax Tuesday, as the prime minister and four senior cabinet members came out strongly against a proposal that’s gathering global steam. Read More Here

(BusinessInsider) – Dow Theorist Richard Russell: Sell Everything Liquid, You Won’t Recognize America By The End Of The Year

Do your friends a favor. Tell them to “batten down the hatches” because there’s a HARD RAIN coming. Tell them to get out of debt and sell anything they can sell (and don’t need) in order to get liquid. Tell them that Richard Russell says that by the end of this year they won’t recognize the country. They’ll retort, “How the dickens does Russell know — who told him?” Tell them the stock market told him. Read More Here

(BusinessInsider) – A Look Back From 2013: How The Bailout Of Greece Caused The Split Of Europe

Last night we noted an interesting paragraph in an Ambrose Evans-Pritchard piece on the Telegraph, which cited an article in the major German newspaper Frankfurter Algemeine Zeitung, which described a future euro currency of strong nations that didn’t even include france. Read More Here

(Telegraph) – Banks dump Greek debt on the ECB as eurozone flashes credit warnings

Foreign holders of Greek and Portuguese debt have seized on emergency intervention by the European Central Bank to exit their positions, leaving eurozone taxpayers exposed to the credit risk. Read More Here

(Rense) – Congressional Climate Bills – Stealth Schemes To Raise Energy Prices And Enrich Wall Street – Stephen Lendman

On June 26, 2009, HR 2454: American Clean Energy and Security Act of 2009 (ACESA) passed, purportedly “To create clean energy jobs, achieve energy independence, reduce global warming pollution and transition to a clean energy economy.”

In fact, it lets energy polluters raise prices for huge windfall profits and gives Wall Street a bonanza through carbon trading derivatives speculation. Catherine Austin Fitts’ Solari.com blog explained it last July in her article titled, “The Next Really Scary Bubble” is coming, saying:

“If you think the housing and credit bubble diminished your financial security and your community, or the bailouts, or the rising gas prices did as well, hold on to your hat” for what’s ahead. “Carbon trading is gearing up to make the housing and derivative bubbles look like target practice,” or in other words, be the mother of all scams, courtesy of administration, House and Senate collaboration with Wall Street and the energy giants. Read More Here

(PaulWatson) – Video: Blanchflower – Europe Could Break Up, Another Bailout Inevitable

Former Bank of England policy maker says collapse of single currency unstoppable Continue reading

Economy

(BusinessInsider) – Your Guide To All The Countries That Are One Riot Away From Becoming Greece

Here’s a snapshot taken from a Morgan Stanley report by Paolo Batori that shows how European financial systems have deteriorated during this crisis, and who’s most at risk of becoming the next Greece. Read More Here

(BusinessInsider) – Behind The Scenes, European Banks Freak Out About Lending To Each Other

Right now, markets are getting hammered as protests rock Athens and no one trusts Greece to get out of this crisis. Read More Here

(MSNBC) – Video: Dow Jones Crash Caused By Typo! – Video Link Here

(AP) – Video: NYSE Stock Board Time Lapse – Video Link Here

(CNBC) – Video: Cramer Saves The Market? Sees Error In P&G Share Pricing

CNBC’s Jim Cramer notices the large drop in Procter & Gamble shares and shares his belief there must be an error. View Video Here

(Bloomberg) – Citigroup Finds ‘No Evidence’ Bank Involved in Erroneous Trades

Citigroup Inc. said it found “no evidence” that it was involved in erroneous trades after U.S. equity markets plunged today.

“We, along with the rest of the financial industry, are investigating to find the source of today’s market volatility,” bank spokesman Stephen Cohen said in a statement. “At this point, we have no evidence that Citi was involved in any erroneous transaction.” Read More HereUpdate 2

(Reuters) – Many possible triggers for wider euro debt crisis

Europe may be months, conceivably weeks away from an expanded debt crisis that cuts more countries off from access to the markets and forces fresh emergency action by rich governments or the European Central Bank. Read More Here

(SteveWatson) – Audit The Fed Push Strengthened By Second Front In Senate

The push to audit the Federal Reserve was given a fresh injection yesterday with the introduction of another bipartisan amendment to the Wall Street reform bill in the Senate that would force the central bank to reveal where $2 trillion in public bailout money was spent. Read More Here

(CNBC) – Stock Market Falls Nearly 1000 Points

The Dow plunged Thursday amid buzz in the market that European banks have halted lending Read More Here

(CNBC) – Drudge Heralds ‘Market Violence’: Fear, Euro Weakens, Greek Riots Continue, Retail Disappoints

Stocks staged one of the most dramatic selloffs in market history Thursday as what may have been a trader error exacerbated losses in a market already jittery about the European debt crisis. Read More Here

(Business&MediaInstitute) – Video: CNBC’s Bartiromo – ‘This Really Sounds Like Market Manipulation to Me’

While everyone is scratching their heads and trying to figure out how the Dow Jones Industrial Average (DJIA) lost nearly 1,000 points before rallying back to lose only 347 points – it appears not to be limited to just one stock. Read More Here

(RussiaToday) – Video: Gerald Celente on Greece – People will rise against bank bailouts globally

After a day of unrest which saw three people killed, Greece’s parliament is preparing to vote on the controversial austerity package. Wednesday’s violence included a bank in the capital being set alight. Demonstrators clashed with police when protesters marched on the country’s parliament building. They are angry at government spending cuts aimed at securing a 110 billion euro rescue package from the EU and the IMF. Trend forecaster Gerald Celente says the Greek situation is going global.

(SteveWatson) – Audit The Fed Push Strengthened By Second Front In Senate

Dorgan, Grassley introduce another amendment for spending transparency Read More Here

(HuffingtonPost) – Long-Term Unemployment: 80 Percent Of People Jobless Last Summer Still Out Of Work

Just one in five people who were out of work last summer have found jobs since then. Read More Here

(ZeroHedge) – John Taylor: “Dead Man Walking…The Euro Is Finished” – Tyler Durden

One of the incidents that I remember from my youth was the first time I saw a chicken slaughtered and running around headless for quite a few minutes before it keeled over and died. The euro is at that stage. Its life is finished, but it will be around for some time before it becomes a subject of historical analysis. Read More Here

(Reuters) – Freddie Mac posts loss, sees need for state funds

Freddie Mac (FRE.N), the second-largest provider of residential mortgage funds, on Wednesday said it lost $8.0 billion in the first quarter and warned that it would continue to need government funds because the housing market remains fragile. Read the rest of this entry Read More Here

(RussiaToday) – Video: Alex Jones On Russia Today: Greece Riots Coming To America?

As protests turned into riots in Greece amidst the financial crisis, the big question remains, what will happen to the global financial market after this bailout? This crisis has been spreading globally and many people are saying that the economy is getting worse. Alex Jones says he believes that China will go bankrupt in the next few years. Alex Jones also speaks about the recent advertisement that shows the government invading our homes. Continue reading

Cut the Partisan Crap … BOTH the Private Sector AND the Government are to Blame for the Financial Crisis

(WashingtonsBlog) – Partisan GOP hacks say the financial crisis was caused by too much regulation, and government interference in the markets.

But Glass-Steagall was repealed, derivatives were left unregulated, and the regulators were watching porn instead of preventing fraud. Giant banks, hedge funds and other fat cat private players knowingly gamed the market and committed fraud in more ways than can be listed in a single post. Continue reading

Understanding Derivatives In Layman Terms

An Easily Understandable Explanation of Derivative Markets.

Heidi is the proprietor of a bar in Detroit. She realizes that virtually all of her customers are unemployed alcoholics and, as such, can no longer afford to patronize her bar. To solve this problem, she comes up with a new marketing plan that allows her customers to drink now, but pay later. She keeps track of the drinks consumed in a ledger. Continue reading

Banks Bailed Out By American Taxpayers

(WashingtonsBlog) – Americans bailed out the giant banks. So how do the too big to fails re-pay the American taxpayers?

By betting that American states and cities will fail.

As the Wall Street Journal notes:

As U.S. cities and towns wrestle with financial problems, investors are finding a new way to profit on their misery: by buying derivatives that essentially bet municipalities will default.

These so-called credit default swaps are basically insurance contracts that have long been available to protect holders of corporate bonds against default. They became available a few years ago for municipal debt, allowing investors to short sell—or bet against—countless cities, towns and bridges, and more than a dozen states, including California, Michigan and New York.

The derivatives are still thinly traded, but their existence has the potential to make investors skittish

Continue reading