Search
Recent comments
- your troubles start in washington....
31 min 12 sec ago - USA vs china.....
2 hours 35 min ago - chilli peppers....
2 hours 38 min ago - 10 years later....
13 hours 28 min ago - a peculiar hairdo....
13 hours 57 min ago - the end is near.....
15 hours 35 min ago - friendly fire....
15 hours 43 min ago - enough is enough....
19 hours 3 min ago - well-groomed nails....
21 hours 8 min ago - dead boots.....
21 hours 57 min ago
Democracy Links
Member's Off-site Blogs
gambling with a loaded deck .....
A superannuation analyst has warned only a "financial miracle" will prevent a second year of steep losses in the sector.
According to the latest data, the average return for the month of January fell another 1.8 per cent, taking losses over the past 12 months to almost 18 per cent.ABC business editor Peter Ryan says this gloomy forecast comes from SuperRatings, a private company which tracks the performance of the superannuation industry.
"As you can imagine, they have been very busy over the past six to eight months," he said.
"Put simply, they say there is no light at the end of the tunnel - in fact, SuperRatings says there's no good news for anyone holding investments other than cash or fixed interest at the moment.
- By Gus Leonisky at 24 Feb 2009 - 5:56am
- Gus Leonisky's blog
- Login or register to post comments
socialization of free markets...
Banking on the Brink
By PAUL KRUGMANComrade Greenspan wants us to seize the economy’s commanding heights.
O.K., not exactly. What Alan Greenspan, the former Federal Reserve chairman — and a staunch defender of free markets — actually said was, “It may be necessary to temporarily nationalize some banks in order to facilitate a swift and orderly restructuring.” I agree.
The case for nationalization rests on three observations.
First, some major banks are dangerously close to the edge — in fact, they would have failed already if investors didn’t expect the government to rescue them if necessary.
Second, banks must be rescued. The collapse of Lehman Brothers almost destroyed the world financial system, and we can’t risk letting much bigger institutions like Citigroup or Bank of America implode.
Third, while banks must be rescued, the U.S. government can’t afford, fiscally or politically, to bestow huge gifts on bank shareholders.
Let’s be concrete here. There’s a reasonable chance — not a certainty — that Citi and BofA, together, will lose hundreds of billions over the next few years. And their capital, the excess of their assets over their liabilities, isn’t remotely large enough to cover those potential losses.
-----------------------
Gus: by potential losses one has to consider that the entire world economy is worth 54 trillion bux plus a few cents, and that the derivative betting market on the health of this world economy is worth on paper about 10 times that sum, minus a lot of sense. Thus the potential for bad debts is HUMONGOUS...Iif debts have to be paid, either we don't pay and shoot, or we bleed to death...
----------------------
Police are preparing for a "summer of rage" as victims of the economic downturn take to the streets to demonstrate against financial institutions, the Guardian has learned.
Britain's most senior police officer with responsibility for public order raised the spectre of a return of the riots of the 1980s, with people who have lost their jobs, homes or savings becoming "footsoldiers" in a wave of potentially violent mass protests.
Superintendent David Hartshorn, who heads the Metropolitan police's public order branch, told the Guardian that middle-class individuals who would never have considered joining demonstrations may now seek to vent their anger through protests this year.