Mid-East Stocks, US Futures Slide As Goldman Warns Of Paris Attacks' Negative Implications For Markets
Tyler Durden's pictureSubmitted by Tyler Durden on 11/15/2015 13:30 -0500
Consumer Confidence Dubai France goldman sachs Goldman Sachs headlines Nicolas Sarkozy Risk Premium Saudi Arabia Sovereign Risk Sovereign Risk Volatility
Following the weakness in the few minutes of after-hours trading on Friday's US session that overlapped with the first headlines from France, we are getting a first glimpse at the posible fallout from the Paris terror attacks. The Middle Eastern stock markets tumbled significantly with Saudi Arabia's Tadawul All Share index down 3% (biggest drop in 3 months) to its lowest since December 2012, and Dubai's FMG Index plunged 3.7% to its lowest since 2014. Short-run implication for the equity market is likely to be negative according to Goldman, with a notably higher risk premium regarding uncertainties about the medium-term political implications.
Friday's after-hours action in US equity futures was weak - and this was hours before the worst headlines hit...
And Middle Eastern markets are giving us a glimpse of what is to come...
Saudi Arabia...
To 3 year lows...
And Dubai...
Near 2-year lows...
As Goldman Sachs warns, Attacks in Paris: Increased uncertainty likely to weigh on activity and increase market volatility in the short run
French President Francois Hollande has declared a 'state of emergency' following six simultaneous terrorist attacks in Paris on Friday night (November 13, 2015), for which the Islamist State (IS) organisation has claimed responsibility.
The 'state of emergency' entails the imposition of the following measures until further notice:
Reinforced controls at French borders and for all transport to and from other countries.
A reinforced military presence in Paris, with the possibility that curfews may be introduced.
Public events (sport, cultural and entertainment) may be cancelled when public security is believed to be at risk.
Additional security and police controls (including the ability to conduct home searches at any time without warning).
Political tensions intensifying, leading to heightened political uncertainty
Political reactions –On Saturday morning, President Hollande declared three national ‘days of mourning’ for the victims of the terrorist attacks, insisting on the need for national unity and solidarity. His immediate response reflects the French authorities’ fear of growing division and tension within the French population, which Friday’s events are only likely to intensify. President Hollande also expressed France’s determination to continue to fight terrorism both inside and outside its borders.
The President’s communique was followed by statements from other political leaders, including former President Nicolas Sarkozy (now head of the centre-right Les Républicains party) and Marine Le Pen (leader of the far-right-wing Front National). Mr. Sarkozy called for a “drastic reinforcement” of security measures, while Ms. Le Pen stressed that “France and French citizens are no longer safe”.
Political implications
Meeting the challenges posed by these attacks represents a significant political test for the French government in general, and for President Hollande (as Head of State) in particular.
Political tensions are likely to increase ahead of France’s regional elections, scheduled for early December (6 and 13). As already reflected in yesterday’s reactions from Mr. Sarkozy and Ms. Le Pen, issues of security will inevitably come to centre-stage in the electoral debate. Heightened concerns about security and immigration are likely to bolster the performance of Ms. Le Pen’s Front National (which has taken a hard line on these issues), while simultaneously forcing the mainstream parties to clarify their position on both issues.
Under such electoral pressures, the French government is likely to adopt a harder line towards immigration, complicating management of the ongoing European refugee crisis and creating further political tensions at the EU level at a sensitive time.
In the longer run and ahead of the Presidential election in May 2017, the Front National will likely benefit from ongoing concerns about security and migration, in particular at the local level. Whether this proves sufficient to sway the dynamics of the presidential election will depend on the ability of mainstream parties to tackle terrorist risks credibly and effectively in the coming months.
Rising uncertainty will weigh on economic activity in some sectors, but largely in a transitory manner
Concerning the economic impact of the terrorist attacks, the immediate impact is likely to be a decline in tourism (to Paris in the first place) and an associated fall in (non-durable) consumption (as spending on entertainment/sport/cultural events declines). Activity in the retail sector will be negatively affected in the short run. Consumer spending is likely to remain weak for some months if concerns about further terrorist attacks persist, as some security experts say is likely. At the same time, there is likely to be some substitution of spending towards ‘home-based’ entertainment and leisure.
Taking a longer perspective, the duration of the ‘confidence shock’ stemming from the terrorist attacks (reflecting concerns about security) is uncertain.* While heightened security concerns and uncertainty persist, investment decisions and purchases of consumer durables are likely to be delayed. But such effects can reverse quickly should confidence be re-established. Whether we see a further escalation of events – more terrorist attacks and/or an intensified military response aimed at IS – remains key in this respect.
Where we can be more certain is that the French government budget will become more stimulative, as additional security and military expenditure to address the terrorist challenge is announced (as was already the case in the 2016 budget) (see here). _________________ --
'Suppression of truth, human spirit and the holy chord of justice never works long-term. Something the suppressors never get.' David Southwell
http://aangirfan.blogspot.com http://aanirfan.blogspot.com
Martin Van Creveld: Let me quote General Moshe Dayan: "Israel must be like a mad dog, too dangerous to bother."
Martin Van Creveld: I'll quote Henry Kissinger: "In campaigns like this the antiterror forces lose, because they don't win, and the rebels win by not losing."
Not new, but interesting. _________________ 'And he (the devil) said to him: To thee will I give all this power, and the glory of them; for to me they are delivered, and to whom I will, I give them'. Luke IV 5-7.
By Tara Cunningham, Business Reporter
7:21PM GMT 15 Jan 2016
For the second time in seven months, the Shanghai Composite index entered 'bear market' territory, as FTSE suffers its worst new year start ever
Britain’s leading companies surrendered more than £113bn in value in the first 10 trading sessions this year, as another oil-inspired sell-off wreaked havoc on global financial markets.
A lethal cocktail of oil price volatility, China’s controversial circuit breaker and fears of a prolonged global economic slowdown have culminated in a frightful fortnight for the FTSE – its worst new year start in its 31-year history.
The FTSE 100 imploded today, closing at its lowest level in three years – down 114.13points, or 1.93pc, to 5,804.10, with almost £30bn wiped off. The blue chip index has now lost 18.3pc since hitting a high of 7,104 in April.
For the third time this week the price of a barrel of Brent crude dipped below the $30 mark yesterday, triggering a mass sell in China. In its wake the Asian powerhouse tumbled into official bear market territory, defined as any fall of above 20pc from a recent high.
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Events in China contaminated global financial markets. In Europe, the Stoxx 600 also entered a bear market, down 20.34pc since hitting a high in April. Meanwhile, the German DAX and the CAC in Paris fell by 2.5pc and 2.4pc, respectively. Wall Street became another scene of imploding stocks when US markets also faltered, with the Dow Jones industrial average opening 2.3pc lower and S&P down 3pc.
David Buik, of Panmure Gordon, suggested the “financial carnage” and “gargantuan pullback” in stock markets in the first two weeks of the year was the “worst since 1928”.
The Shanghai Composite index has fallen by almost 21pc in just three weeks.
The market mayhem came as the Shanghai Composite Index sank 3.5pc overnight to 2,902 - its lowest level since December 14. China’s benchmark index has fallen by almost 21pc hitting its December high just three weeks ago, after a nightmare start to the new year.
Bear-market territory is a market condition in which prices of securities fall by 20pc or more from a recent high. This is not to be confused with official correction territory, which is a reverse movement (usually negative) of at least 10pc to adjust for an overvaluation.
During the overnight trading session, the Shanghai Composite Index breached its August 26 nadir, which wiped $5 trillion off financial markets, before recovering some ground later on. The benchmark index is already nursing hefty losses of 15pc so far this year and is off by 43.9pc since its June peak of 5,166.
This is the second time in seven months the index has fallen into bear market territory. Sentiment towards the region remains fragile as concerns mount about Beijing’s ability to stem the latest sell-off.
Earlier this week, the Shanghai Composite index enjoyed some respite - and a 2pc jump - following its rollercoaster start to 2016, after better-than-expected trade data tempered some of the fears that the world’s second largest economy is contracting.
Chinese stock market plunges again: For how much longer can China hold back the tide?
Has China lost control of its currency?
However, data today showed China’s bank lending slowed last month, reinforcing concerns about the state of the country’s health.
The fall into bear market territory is another setback for the state authorities in China after its interventions to support both the yuan and stock markets resulted in the worst new year start in 20 years.
Indeed its torrid start to 2016 was triggered by a controversial circuit-breaker mechanism, which was subsequently scrapped in its first week of operation, and its move to accelerate the depreciation of the yuan.
Back in London, it was the miners and oil stocks that were causing the most damage after oil prices dipped again.
Brent crude slipped below $30 once again. Miner BHP Billiton also announced a $7.2bn writedown on its US shale operations sending shares 6.4pc lower. Meanwhile, Anglo American and Glencore off by 11.5pc and 6.5pc, respectively.
Glimmers of hope for oil as Russia poised to slash output
Time to 'sell everything'? No, this is when 'hold everything' works _________________ --
'Suppression of truth, human spirit and the holy chord of justice never works long-term. Something the suppressors never get.' David Southwell
http://aangirfan.blogspot.com http://aanirfan.blogspot.com
Martin Van Creveld: Let me quote General Moshe Dayan: "Israel must be like a mad dog, too dangerous to bother."
Martin Van Creveld: I'll quote Henry Kissinger: "In campaigns like this the antiterror forces lose, because they don't win, and the rebels win by not losing."
Phillip Inman Economics correspondent
Wednesday 20 January 2016 22.07 GMT Last modified on Thursday 21 January 2016 01.00 GMT
Fears that the global economy could be heading for a repeat of the 2008 financial crash have sent shockwaves through financial markets – prompting a rush to safe havens by investors.
Oil prices fell to a fresh 12-year low on Wednesday and metal prices tumbled in response to warnings that China’s slowdown could derail the global recovery at a time when central banks, which came to the rescue in the credit crunch, have only limited firepower.
As world and business leaders gathered for the annual World Economic Forum in Davos, Switzerland, the FTSE 100 was gripped by panic selling, especially of mining and oil companies that have been hit hard by the global slowdown in manufacturing and trade. Earlier this week, China recorded the slowest rate of economic growth for 25 years.
The index dropped more than 200 points to finish the day down more than 20% from its peak of 7,122, reached in April last year. Such a 20% decline marks the beginning of a bear market.
In New York, shares on the Dow Jones Industrial Average closed 249 points down (1.56%), recovering from a 550-point-drop earlier in the day, while Brent crude dropped to $27.78 a barrel – down by about 70% from its summer 2014 level of $115 a barrel.
If this market turmoil forces a US rate cut, the outlook will truly be grim
Nils Pratley
Read more
Stock markets in Russia, Brazil and Saudi Arabia also dived as concerns mounted that countries already badly hit by the fall in oil prices could be forced to dip further into reserves to prevent an economic crisis. Global equities have had their worst start to a year on record.
William White, a former chief economist of the Bank for International Settlements (BIS), the central bankers club, who now chairs the OECD’s review committee warned that central bankers had “used up all their ammunition”.
“The situation is worse than it was in 2007. Our macroeconomic ammunition to fight downturns is essentially all used up. Debts have continued to build up over the last eight years and they have reached such levels in every part of the world that they have become a potent cause for mischief,” he said on the eve of the event.
The BIS was one of the few organisations to warn during 2006 and 2007 about the unstable levels of bank lending that eventually led to the Lehman Brothers crash.
Concerns that the global recovery could be derailed began last summer when a devaluation of the Chinese currency sparked a meltdown on the Shanghai stock exchange. A series of economic downgrades to the Chinese and US economies since then, coupled with a rise in US interest rates, have fuelled investors’ misgivings about optimistic forecasts for a recovery in economic fortunes.
Adding to the concerns of a sharp downgrade in global growth this year, a survey for the consultants PwC before the Davos meeting revealed that two-thirds of chief executives saw more threats facing their businesses than three years ago. And the head of the Swiss banking giant UBS, Axel Weber, turned the screw by warning that the world was stuck in an era of low growth.
Last week, an investment analyst at Royal Bank of Scotland advised clients to “sell everything” except the safest high grade bonds after warning of a “cataclysmic” year and the strong likelihood of a stock market crash. His comments came after the chancellor, George Osborne, warned in a new year speech of a “cocktail of threats” to the UK’s prospects from an increasingly uncertain world economy.
Nariman Behravesh, the chief economist at consultancy IHS blamed the Chinese authorities for triggering the global panic. “The big event that I think has captured everyone’s attention is the developments in China and in particular the fact that growth is slowing,” he said.
The Chinese policymakers have fumbled, he said. “They have made some mistakes. And they have added to the uncertainty and the volatility by their behaviour.”
Others blamed the US central bank, the Federal Reserve, for raising interest rates in December to 0.5% when growth was already faltering, increasing borrowing costs to US businesses and encouraging an influx of funds, especially from China.
However, Nouriel Roubini, who was even more vocal than the BIS in warning of the 2008 crash, said that the threat of a crash was overplayed: “It is not going to be like 2008-09. There is not the excessive leverage in the financial system that there was last time.”
But 2016 was going to be a bumpy year until central banks responded with extra stimulus, he warned, saying: “The big thing that should happen is China should stop kicking the can down the road and get on with some serious structural reforms.”
Pierre Moscovici, the European economics commissioner, said that central banks retained some firepower to prevent another crisis. “I don’t feel that the financial crisis is coming back. We don’t feel that we are facing the risk of a breakdown in world growth, but there are downsides that we need to address,” he said.
Maurice Obstfeld, the chief economist at the IMF, said he was concerned that central banks were held back by concerns that an extra stimulus would cause extra inflation in a couple of years. He said: “Central banks should be more relaxed about overshooting their inflation targets and more concerned about deflationary pressures.
“We are in an environment where there is growing concern that inflation expectations are not firmly anchored. So there should be much more concern about deflation.”
Among the biggest losers on the FTSE 100 were the international mining groups, whose business has been particularly hit by the slowdown in China as demand for industrial basics like iron ore and copper has fallen rapidly.
The biggest loser was miner and commodities trading group Glencore, whose shares tumbled nearly 10% to 71p. Less than two years ago, they were changing hands at 375p. Anglo American, the iron ore, copper and diamond miner, lost more than 7%, falling to 221p. Less than four years ago, they were valued at more than £34. _________________ --
'Suppression of truth, human spirit and the holy chord of justice never works long-term. Something the suppressors never get.' David Southwell
http://aangirfan.blogspot.com http://aanirfan.blogspot.com
Martin Van Creveld: Let me quote General Moshe Dayan: "Israel must be like a mad dog, too dangerous to bother."
Martin Van Creveld: I'll quote Henry Kissinger: "In campaigns like this the antiterror forces lose, because they don't win, and the rebels win by not losing."
Joined: 25 Jul 2005 Posts: 18335 Location: St. Pauls, Bristol, England
Posted: Fri Jan 22, 2016 1:00 am Post subject:
World faces wave of epic debt defaults, fears central bank veteran
http://www.telegraph.co.uk/finance/financetopics/davos/12108569/World- faces-wave-of-epic-debt-defaults-fears-central-bank-veteran.html
Exclusive: Situation worse than it was in 2007, says chairman of the OECD's review committee
By Ambrose Evans-Pritchard, in Davos 9:00PM GMT 19 Jan 2016
The global financial system has become dangerously unstable and faces an avalanche of bankruptcies that will test social and political stability, a leading monetary theorist has warned.
"The situation is worse than it was in 2007. Our macroeconomic ammunition to fight downturns is essentially all used up," said William White, the Swiss-based chairman of the OECD's review committee and former chief economist of the Bank for International Settlements (BIS).
"Emerging markets were part of the solution after the Lehman crisis. Now they are part of the problem, too."
William White, OECD
"Debts have continued to build up over the last eight years and they have reached such levels in every part of the world that they have become a potent cause for mischief," he said.
"It will become obvious in the next recession that many of these debts will never be serviced or repaid, and this will be uncomfortable for a lot of people who think they own assets that are worth something," he told The Telegraph on the eve of the World Economic Forum in Davos.
"The only question is whether we are able to look reality in the eye and face what is coming in an orderly fashion, or whether it will be disorderly. Debt jubilees have been going on for 5,000 years, as far back as the Sumerians."
The next task awaiting the global authorities is how to manage debt write-offs - and therefore a massive reordering of winners and losers in society - without setting off a political storm.
Mr White said Europe's creditors are likely to face some of the biggest haircuts. European banks have already admitted to $1 trillion of non-performing loans: they are heavily exposed to emerging markets and are almost certainly rolling over further bad debts that have never been disclosed.
The European banking system may have to be recapitalized on a scale yet unimagined, and new "bail-in" rules mean that any deposit holder above the guarantee of €100,000 will have to help pay for it.
The warnings have special resonance since Mr White was one of the very few voices in the central banking fraternity who stated loudly and clearly between 2005 and 2008 that Western finance was riding for a fall, and that the global economy was susceptible to a violent crisis.
Mr White said stimulus from quantitative easing and zero rates by the big central banks after the Lehman crisis leaked out across east Asia and emerging markets, stoking credit bubbles and a surge in dollar borrowing that was hard to control in a world of free capital flows.
The result is that these countries have now been drawn into the morass as well. Combined public and private debt has surged to all-time highs to 185pc of GDP in emerging markets and to 265pc of GDP in the OECD club, both up by 35 percentage points since the top of the last credit cycle in 2007.
"Emerging markets were part of the solution after the Lehman crisis. Now they are part of the problem too," Mr White said.
Mr White, who also chief author of G30's recent report on the post-crisis future of central banking, said it is impossible know what the trigger will be for the next crisis since the global system has lost its anchor and is inherently prone to breakdown.
A Chinese devaluation clearly has the potential to metastasize. "Every major country is engaged in currency wars even though they insist that QE has nothing to do with competitive depreciation. They have all been playing the game except for China - so far - and it is a zero-sum game. China could really up the ante."
Mr White said QE and easy money policies by the US Federal Reserve and its peers have had the effect of bringing spending forward from the future in what is known as "inter-temporal smoothing". It becomes a toxic addiction over time and ultimately loses traction. In the end, the future catches up with you. "By definition, this means you cannot spend the money tomorrow," he said.
A reflex of "asymmetry" began when the Fed injected too much stimulus to prevent a purge after the 1987 crash. The authorities have since allowed each boom to run its course - thinking they could safely clean up later - while responding to each shock with alacrity. The BIS critique is that this has led to a perpetual easing bias, with interest rates falling ever further below their "Wicksellian natural rate" with each credit cycle.
"It was always dangerous to rely on central banks to sort out a solvency problem ... It is a recipe for disorder, and now we are hitting the limit."
William White, OECD
The error was compounded in the 1990s when China and eastern Europe suddenly joined the global economy, flooding the world with cheap exports in a "positive supply shock". Falling prices of manufactured goods masked the rampant asset inflation that was building up. "Policy makers were seduced into inaction by a set of comforting beliefs, all of which we now see were false. They believed that if inflation was under control, all was well," he said.
In retrospect, central banks should have let the benign deflation of this (temporary) phase of globalisation run its course. By stoking debt bubbles, they have instead incubated what may prove to be a more malign variant, a classic 1930s-style "Fisherite" debt-deflation.
Mr White said the Fed is now in a horrible quandary as it tries to extract itself from QE and right the ship again. "It is a debt trap. Things are so bad that there is no right answer. If they raise rates it'll be nasty. If they don't raise rates, it just makes matters worse," he said.
There is no easy way out of this tangle. But Mr White said it would be a good start for governments to stop depending on central banks to do their dirty work. They should return to fiscal primacy - call it Keynesian, if you wish - and launch an investment blitz on infrastructure that pays for itself through higher growth.
"It was always dangerous to rely on central banks to sort out a solvency problem when all they can do is tackle liquidity problems. It is a recipe for disorder, and now we are hitting the limit," he said. _________________ www.lawyerscommitteefor9-11inquiry.org www.rethink911.org www.patriotsquestion911.com www.actorsandartistsfor911truth.org www.mediafor911truth.org www.pilotsfor911truth.org www.mp911truth.org www.ae911truth.org www.rl911truth.org www.stj911.org www.v911t.org www.thisweek.org.uk www.abolishwar.org.uk www.elementary.org.uk www.radio4all.net/index.php/contributor/2149 http://utangente.free.fr/2003/media2003.pdf
"The maintenance of secrets acts like a psychic poison which alienates the possessor from the community" Carl Jung
https://37.220.108.147/members/www.bilderberg.org/phpBB2/
I came across this on facebook. If true that implies that all savings in US banks now belong to the banks themselves. If a bank defaults or there is a bank run, savers aren't protected at all...
"By a provision of the Dodd-Frank banking bill, savings held at banks by the people, are not really protected anymore by the FDIC, because savings are classified as liabilities of the bank, and depositors are now classified as creditors of the bank, not mere depositors anymore. If the banks, in the event of a financial meltdown, ever shut down, depositors will have to stand in line alongside bondholders of the bank and other creditors of the bank to be settled out in a bankruptcy case. The magic of this, as far as the government and their branch arm, the FDIC goes, is that technically, the FDIC doesn't have to cover those lost deposits because in the eyes of the law, those were not deposits, but mere loans, to the bank. This saves the hide of the FDIC because they have mere billions to cover the deposits worth trillions in the banks in America."
based on the book
The Big Short: Inside the Doomsday Machine Paperback – 14 Jan 2011
by Michael Lewis
Writing with style on the dark side of finance
By Serghiou Const on 21 April 2010
Format: Hardcover Verified Purchase
The book's salient points appear on the bottom half of p.243 "...how Wall Street investment banks somehow conned the rating agencies into blessing piles of crappy loans;how this had enabled the lending of trillions of dollars to ordinary Americans;how ordinary Americans had happily complied and told the lies they needed to tell to obtain the loans;how the machinery that turned the loans into supposedly riskless securities was so complicated that investors had ceased to evaluate the risks;how the problem had grown so big that the end was bound to be cataclysmic and have big social and political consequences..."
The elements that comprise the book excellence are:the first class intellect of the author matching the quality of the Institutions he was educated namely Princeton University and the London School of Economics;his charisma in writing concisely, lucidly and impressively wittily, and the fact that he is imbued with morality;the story is not presented in the abstract but through brilliant albeit eccentric protagonists - all betting and winning against the market - such as Steve Eisman graduating from the University of Pennsylvania magna cum laude,and then with honours from Harvard Law School and Dr Michael Burry who abandoned neurology studies at Stanford to immerse himself in the world of finance.Read more ›
A well written, thoroughly researched insight into the relatively small band of individuals that predicted that the house mortgage market would implode. To these investors and speculators who chose to take, not much more than a cursory glance at the underlying assets of the glut of 'mortgage bonds' marketed by Wall Street institutions, it was blindingly obvious that many contained extremely high levels of 'guaranteed to default' sub-prime borrowers. They were further amazed when they were offered by Blue Chip universally known companies who in many cases had put the bonds together and sold them to their clients, insurance cover at very low cost, to pay out vast sums of money as and when the bonds failed. And guess what?........you didn't even have to own one of these toxic pieces of financial crud....just pay the premium and pick-up the loot! These policies known as Credit Default Swaps (CDS) are what the author refers to as 'The Big Short'.
Many of the beneficiaries were constrained in making even more money by restricting the CDS's they bought because of the fear that making a killing cannot be this easy and 'we must have missed something'. They hadn't, it was a fast route to vast riches.
Those who put together these Mortgage Bonds and those who traded in them, blindly ignoring the irresponsible dishing out of mortgages to all and sundry and the collapse in the value of properties were either blinded with greed or certifiably stupid.
Joined: 25 Jul 2005 Posts: 18335 Location: St. Pauls, Bristol, England
Posted: Mon Feb 29, 2016 12:37 am Post subject:
Mervyn King, who headed the bank between 2003 and 2013, believes the world economy will soon face another crash as regulators (yes, that's you Mark Carney) have failed to reform banking.
Another financial crisis is “certain” and will come sooner rather than later, the former Bank of England governor has warned.
Mervyn King, who headed the bank between 2003 and 2013, believes the world economy will soon face another crash as regulators have failed to reform banking.
He has also claimed that the 2008 crisis was the fault of the financial system, not individual greedy bankers, in his new book, The End Of Alchemy: Money, Banking And The Future Of The Global Economy, serialised in The Telegraph.
“Without reform of the financial system, another crisis is certain, and the failure ... to tackle the disequilibrium in the world economy makes it likely that it will come sooner rather than later,” Lord King wrote.
He added that global central banks were caught in a “prisoner’s dilemma” - unable to raise interest rates for fear of stifling the economic recovery, the newspaper reported.
A remark from a Chinese colleague who said the west had not got the hang of money and banking was the inspiration for his book.
Lord King, 67, said without understanding what caused the crash, politicians and bankers would be unable to prevent another, and lays the blame at the door of a broken financial system.
He said: “The crisis was a failure of a system, and the ideas that underpinned it, not of individual policymakers or bankers, incompetent and greedy though some of them undoubtedly were.”
Spending imbalances both within and between countries led to the crisis in 2008 and he believes a current disequilibrium will lead to the next.
To solve the problem, Lord King suggests raising productivity and boldly reforming the banking system.
He said: “Only a fundamental rethink of how we, as a society, organise our system of money and banking will prevent a repetition of the crisis that we experienced in 2008.”
The dollar collapse will be the single largest event in human history. This will be the first event that will touch every single living person in the world. All human activity is controlled by money. Our wealth,our work,our food,our government,even our relationships are affected by money.
P2P Solutions: An Open Source Investigation:
https://www.corbettreport.com/?s=solutions _________________ 'And he (the devil) said to him: To thee will I give all this power, and the glory of them; for to me they are delivered, and to whom I will, I give them'. Luke IV 5-7.
Concerns that we could be headed for a repeat of the 2008 financial crash are intensifying, a day after stock markets around the world entered what's known as "bear market" territory; a fall of 20 percent or more.
The anxiety is being driven by China's economic slowdown and the continuing slide in the price of oil.
Some economists now fear the global financial system has become dangerously unstable.
The number of stock prices that have hit new lows have made it a turbulent start to the new year.
Some traders are also worried that all this market volatility coincides with central banks being less willing - or less able - to revive the economy
So, why does the global economic system seem to lurch from one financial crisis to another? And is another one imminent?
Presenter: Nick Clark
Guests:
Ann Pettifor, director of Policy Research in Macroeconomics, also known as PRIME. Ann is also author of: "Just Money: How Society can Break the Despotic Power of Finance".
Vicky Pryce, chief economic adviser at The Centre for Economic and Business Research.
Anastasia Nesvetailova, director of the City Political Economy Research Centre at City University in London.
Source: Al Jazeera _________________ --
'Suppression of truth, human spirit and the holy chord of justice never works long-term. Something the suppressors never get.' David Southwell
http://aangirfan.blogspot.com http://aanirfan.blogspot.com
Martin Van Creveld: Let me quote General Moshe Dayan: "Israel must be like a mad dog, too dangerous to bother."
Martin Van Creveld: I'll quote Henry Kissinger: "In campaigns like this the antiterror forces lose, because they don't win, and the rebels win by not losing."
Crash imminent for last 9 years but regulation is still 'anytime' & 'light touch'.
Basel further reins in banks' use of capital models
Thu Mar 24, 2016 3:00pm GMT
* Basel maps out new curbs on how banks tot up risks
* No date fixed for start of new rules
* Basel says changes won't significantly bump up capital
By Huw Jones
http://www.reuters.com/article/idUKL5N16W1IQ?irpc=932
LONDON, March 24 (Reuters) - The world's largest banks will have less discretion over how much capital to hold against loans turning sour, global regulators proposed on Thursday.
Regulators want to cut complexity and inconsistency in capital requirements among big banks that use their own models, as opposed to methods set out by regulators, to add up credit risks.
Models typically point to lower capital requirements, a big advantage as credit risk accounts for 70 percent of a bank's capital buffer. Regulators suspect big banks of using models to make capital ratios appear stronger than they are.
The proposals from the Basel Committee of banking supervisors, whose rules are applied in all the world's main financial centres, mark a further erosion in the use of models.
Banks fear a "Basel IV" or step change in capital requirements compared with Basel III, which was introduced after the 2007-09 financial crisis.
Basel said the proposed rules wouldn't significantly increase overall capital requirements, and stopped short of the complete ban on models some Basel members had wanted since the crisis.
"The measures announced today largely retain the use of internal models for the determination of credit risk weighted assets, but with important safeguards that will promote sound levels of capital and comparability across banks," the committee's chairman Stefan Ingves said.
Basel is proposing to scrap models for loans to other banks and financial institutions, for equities holdings, and for loans to companies with total assets of more than 50 billion euros, a threshold that would capture about 200 companies.
Instead, banks would have to use the more conservative standard approach set by regulators.
Basel is also proposing a floor, meaning banks using models cannot hold less than 60-90 percent of the capital the standard approach recommends for credit risk.
The committee aims to finalise the rules by the end of this year.
It offered further incentives to rein back model use.
Basel said it was reviewing a rule that requires banks using models to apply them to all calculations where models are allowed. This rule was aimed at stopping banks from using a mix of models or standard approach, depending on which came up with the lower capital requirement.
Furthermore, big banks that are allowed to use models could instead use the standard approach for all their capital calculations and still be deemed to comply with Basel's rules. (Reporting by Huw Jones; Editing by Mark Potter) _________________ --
'Suppression of truth, human spirit and the holy chord of justice never works long-term. Something the suppressors never get.' David Southwell
http://aangirfan.blogspot.com http://aanirfan.blogspot.com
Martin Van Creveld: Let me quote General Moshe Dayan: "Israel must be like a mad dog, too dangerous to bother."
Martin Van Creveld: I'll quote Henry Kissinger: "In campaigns like this the antiterror forces lose, because they don't win, and the rebels win by not losing."
The earnings season has started, and several major banks in the Eurozone have already reported on how they performed in the fourth quarter of 2015, and the entire financial year. Most results were quite boring, but unfortunately Deutsche Bank once again had some bad news.
Just one week before it wanted to release its financial results, it already issued a profit warning to the markets, and the company’s market capitalization has lost in excess of 5B EUR since the profit warning, on top of seeing an additional 18B EUR evaporate since last summer. Deutsche Bank is now trading at less than 50% of the share price it was trading at in July last year.
Deutsche Bank chart
Source: stockcharts.com
And no, the market isn’t wrong about this one. The * is now really hitting the fan at Deutsche Bank after having to confess another multi-billion euro loss in 2015 on the back of some hefty litigation charges (which are expected to persist in the future). And to add to all the gloom and doom, even Deutsche Bank’s CEO said he didn’t really want to be there . Talk about being pessimistic!
Right after Germany’s largest bank (and one of the banks that are deemed too big to fail in the Eurozone system) surprised the market with these huge write-downs and high losses, the CDS spread (‘Credit Default Swap’) started to increase quite sharply. Back in July of last year, when Deutsche Bank’s share price reached quite a high level, the cost to insure yourself reached a level of approximately 100, but as you can see in the next image, the CDS spread started to increase sharply since the beginning of this year. It reached a level of approximately 200 in just the past three weeks, indicating the market is becoming increasingly nervous about Deutsche’s chances to weather the current storm.
CDS Deutsche Bank
Source: Boursorama.com
Let’s now take a step back and explain why the problems at Deutsche Bank could have a huge negative impact on the world economy. Deutsche has a huge exposure to the derivatives market, and it’s impossible, and then we mean LITERALLY impossible for any government to bail out Deutsche Bank should things go terribly wrong. Keep in mind the exposure of Deutsche Bank to its derivatives portfolio is a stunning 55B EUR, which is almost 20 times (yes, twenty times) the GDP of Germany and roughly 5 times the GDP of the entire Eurozone! And to put things in perspective, the TOTAL government debt of the US government is less than 1/3rd of Deutsche Bank’s exposure.
Oops.
Indeed, oops. And the worst part of all of this, is the fact the problems at Deutsche Bank are slowly penetrating the other major financial institutions. Have a look at the CDS spread of Banco Santander (from 109 in December to 170 now).
Joined: 14 Dec 2005 Posts: 475 Location: North London
Posted: Fri Apr 15, 2016 11:08 am Post subject: Financial crash imminent?
Emergency fed meetings. Deutsche Bank admits gold and silver manipulation. JP Morgan need to prepare for a collapse. Dollar to loose its global currency status?
Should we start to prepare for bail-ins, limits on bank withdrawals, pension seizures?
Things are heating up this week as world dictators and financial leaders gather in secret meetings all across America to discuss the fate of our global economy. From Federal Reserve leaders, to Obama, to Joe Biden, to Janet Yellen, to many others…
At the top of page 11, the Federal regulators reveal that they have “identified a deficiency” in JPMorgan’s wind-down plan which if not properly addressed could “pose serious adverse effects to the financial stability of the United States.” Why didn’t JPMorgan’s Board of Directors or its legions of lawyers catch this?
It’s important to parse the phrasing of that sentence. The Federal regulators didn’t say JPMorgan could pose a threat to its shareholders or Wall Street or the markets. It said the potential threat was to “the financial stability of the United States.”
This was confirmed moments ago when Reuters reported that Deutsche Bank has also reached a settlement in US litigation alleging the bank conspired to fix gold prices. In other words, hours after admitting it was rigging the silver market, it did the same for gold.
Published on Apr 14, 2016
Could there be a dramatic and overnight reduction in the value of the dollar? Kirby contends, “I think this is coming in very short order now. The trail of bread crumbs is indicating this is what is afoot right now.”
Does that mean dollar devaluation and a bank “holiday” coming soon? Kirby says, “How quickly this happens is open for conjecture, but that is clearly the direction we are heading. We are unmistakably headed in that direction. The only real question is how long these criminal central bankers can MacGyver the system together and keep it together with elastic bands, paperclips and bungie cords. This is going down. This is going to happen. I think it’s going down in the next two or three weeks. . . .We’ve all speculated that this would eventually happen. Now we are here, and the clock is about to strike midnight.”
Saudi Arabia threatened to sell up to $750 billion worth of US assets held by the Kingdom if Congress passes a bill that would allow the Saudi government to be sued over 9/11, reports The New York Times' Mark Mazzetti.
Saudi Foreign Minister, Adel al-Jubeir, personally passed on the message last month during a trip to Washington, according to The Times.
The foreign minister was referring to the Justice Against Sponsors of Terrorism Act, (JASTA) which would let victims of 9/11 and other terrorist acts sue foreign sponsors of terrorism.
As Vice News noted when it was reintroduced in September, the Senate bill would pave the way for a lawsuit to proceed over Saudi Arabia's alleged role in the 9/11 terror attacks.
Saudi Arabia has been arguing that it's immune from liability over 9/11 under a 1976 law that makes it difficult to sue foreign countries in US courts. However, the JASTA legislation would allow victims of terrorism on US soil to sue foreign sponsors of terrorism.
The Obama administration has been lobbying Congress to block the bill's passage, administration officials and congressional aides from both parties told The Times. The administration argues that the legislation would put Americans at legal risk overseas.
Meanwhile, "the Saudi threats have been the subject of intense discussions in recent weeks between lawmakers and officials from the State Department and the Pentagon," writes Mazzetti. "The officials have warned senators of diplomatic and economic fallout from the legislation."
The Saudi government has routinely denied any involved in 9/11. Additionally, the 9/11 Commission found “no evidence that the Saudi government as an institution or senior Saudi officials individually funded the organization."
However, Mazzetti writes that suspicions about Saudi involvement have lingered because a 2002 inquiry from Congress cited evidence that Saudi officials living in the US were part of the 9/11 terror plot.
Joined: 25 Jul 2005 Posts: 18335 Location: St. Pauls, Bristol, England
Posted: Sat Apr 23, 2016 11:23 am Post subject:
One of those wonderful occasions where the handful of comments at the bottom of the article say 1000 times more - and in a more articulate style - than the entire mainstream news article
Lawrence Fuller 12 days ago
Why not buy the bonds of private companies that are hiring employees to build new facilities and invest in research and development programs? Why not invest in the public sector bonds to hire people to build and repair infrastructure in Europe. Why buy the bonds of failing banks and companies where they are disbursing the funds to pay stock dividends and repurchase stock. The current QE program by the ECB has been as non-productive as the US federal economic stimulus program that provided funds to refinance existing debt and pay for past expenditures by state governments rather than hire new employees and rebuild infrastructure.
suren rao Mar 5, 2016
Withe governments in the western hemisphere piling regulation upon regulation and destroying all incentives for businesses to expand, this money printing spree and punishing the saver will not get the desired effect. This will end badly and one can only pray that the powers that be realize this tomfoolery before it is too late.
FinTech, as it's known, runs all the data systems required digitally to make economies work or fail.
The modern day global financial conspiracy would involve FinTech, whether that be rigging election machines in the U.S or inputting of any data queries from banking, to data projections, crowd funding, the dark web, college sums data.
BRICS would be a real threat, to the G8 and this is what links a lot of different conspiracies together.
FinTech has been completely open to fraud because of a complete lack of governing regulator.
Want to cheat flight purchase data, want to cheat your share price? FinTech or the Stock Market. The fear might be, what if FinTech becomes the stock market, and bypasses the banks?
What if you could capture the tech sector and re-direct it towards finance and analytics. Is that how Amazon's profits went up five fold and they really do hold everyone's data.
Unsurprisingly it is also possible to use this data to guide government policy.
If you have consultants brought into think tanks, you could base ideas and back them up using scientific data. What information you can garner from the public could easily go into specifically designed proprietary software, for say, austerity measures. Or finding the undecideds during an election.
You could basically have a situation where, if it is in some ways not accurate, any variables could seriously screw up your budget which clearly happened before 9/11: Rumsfeld didn't know what the attack was going to be. I am insinuating he thought it would be hacking fraud, not a hijacking, it's like two letters different. He knew about the war games.
It could be a coded message for Fintech presonnel to start moving money around. Numbers, names etc. Anywhere digital systems are used.
Rumsfeld announces £2.3 Trillion had vanished, the very next day you'd think the President would be on the case. Instead he's in a school somewhere, made to look like a confused child.
So it's either Fin Tech stealing the money digitally, or Fin Tech being told to move some money around. Or it's telling every one to go operational or he simply has no idea what is happening. I'd bet on the latter but you could cause so much mayhem, going in and changing a few numbers here and there. You can have the largest military budget on the planet, but if you don't have enough firewall protection????
Another thing i haven't looked into is the dot com crash that happened at the same time.
"The stock market crash of 2000–2002 caused the loss of $5 trillion in the market value of companies from March 2000 to October 2002.[15] The September 11, 2001, attacks accelerated the stock market drop; the NYSE suspended trading for four sessions. When trading resumed, some of it was transacted in temporary new locations."
Et voilla, you have complete control over the tech industry which can then be targeted at financial tech. Facebook, Google, Amazon.....all the data you need for the next 100 years.
The British referendum to leave the European Union looms and many sources in the media and my own private ex-Wall Street banker source who we will call “Rich” are chirping about the possibility of putting the final nail in the coffin of the European Union.
This same source accurately warned prior to the Black Monday event prior to any market crash happening. This is documented by several tweets I posted about the warning last August with one spicy tweet after another. Rich claims to have predicted this by watching the markets lose 888 points in a record of 2 days which he said was historic .
Although, he previously warned that a full collapse of the U.S. dollar was going to happen between Sept-October last year and that didn’t come to fruition right now he is 1-1 with his predictions. He’s now warning along with others in the finance industry including Xavier Rolet the HEAD CEO of the London Stock Exchange that if the Brexit happens and Britain leaves the European Union as a result this could cause the collapse of the British pound. Possibly putting the rest of the UK into a recession or depression. Perhaps this is why George Soros is reportedly dumping stocks and buying gold.
“Europe is buried under so much debt and has structural issues, We see the Capital Markets Union (CMU) as not just the hope, but the last hope for the European project.”
~Xavier Rolet
I am loathe to fear monger, and I don’t think the alternative media should stoop to the levels of the mainstream media. I’m not telling you to put your entire life savings into gold or buy some product. This information is to inform you not scare you.
But realistically its highly probable that an exit from the European Union could cause the British pound to spiral, sending investors into a frenzy. Not to mention if Britain left
the EU other countries could follow in a domino effect quite quickly!
The pound has already been struggling and the economy itself is volatile with the Sterling showing signs of weakness prior to the Brexit referendum. It’s also interesting to note that before the Scottish Referendum in 2014 which received a “NO” vote to Independence , the Sterling was seen plunging in value.
In February earlier this year, the sterling plunged further then during the Scottish referendum for Independence from the EU. The National Institute of Economic and Social Research has even said the pound could slump by 20% against other currencies. The credit agency Moody’s has also expressed concerns that Brexit may trigger a collapse of the fragile EU issuing a statement, saying that “even if the UK votes to stay in the EU a small crisis could threaten the EU’s Sustainability.” And of course the opportunistic George Soros opted for a gold haven saying Brexit would spell end of EU . Soros has also returned to the markets after an exodus and he’s betting on Economic turmoil .
What’s more, the President of Poland Andrzej Duda, is warning that The European Union may collapse if Britain leaves. But considering the New World Order backbone is Europe, perhaps the European Union needs to fully collapse.
The European Union was setup by the very interest that want a New World Order lineage of family bloodlines. Accused Pedophile Ted Heath first elected to take Britain into
the European Union without a referendum in 1973.
Heath lied – there were prior discussions of setting up a One European Currency in 1955 at the mysterious Bilderberg as we already reported earlier in the week. Since Bilderberg, is meeting today and they will be discussing Brexit the exiting of the European Union why shouldn’t we common folks be talking about the possible implications of Brexit?
Brexit would mean a free Europe reversing the illegal entry in the European Union in 1973 and over 40 years of lying to the British public.
Mark Reckless, Ted Heath lied about Europe (24Oct11): _________________ www.lawyerscommitteefor9-11inquiry.org www.rethink911.org www.patriotsquestion911.com www.actorsandartistsfor911truth.org www.mediafor911truth.org www.pilotsfor911truth.org www.mp911truth.org www.ae911truth.org www.rl911truth.org www.stj911.org www.v911t.org www.thisweek.org.uk www.abolishwar.org.uk www.elementary.org.uk www.radio4all.net/index.php/contributor/2149 http://utangente.free.fr/2003/media2003.pdf
"The maintenance of secrets acts like a psychic poison which alienates the possessor from the community" Carl Jung
https://37.220.108.147/members/www.bilderberg.org/phpBB2/
By Philip Aldrick, Economics Editor7:33PM BST 20 Aug 2010
The IEA raised its concerns after the latest public finances data from the Office for National Statistics (ONS) this week, which showed that the total debt, excluding bank bail-outs, is £816bn – itself a record high. However, the figures strip out the state's pension liabilities in a contravention of standard accounting practices.
Mark Littlewood, the IEA's director-general, said: "The latest official national debt figure is seriously misleading. Looming in the background are pension liabilities. These should be moved to the forefront.
"The ONS should include these liabilities in their calculations. It is shocking enough to see official figures revealing a jump in national debt over the last year from the equivalent of 48pc of GDP to 56pc, but the grave reality is that our real national debt stands at 333pc of GDP."
Nick Silver, an IEA research fellow, said the full figure, including the £1.2 trillion public sector pension liability and £2.7 trillion state pension liability, should be published either monthly or annually alongside the net debt data for reasons of transparency.
The ONS has already begun to assemble the data, publishing the full list of Britain's debts and liabilities for the first time in July, which came to a total of between £3.68 trillion and £4.84 trillion.
Aileen Simkins, ONS director of operations on economic statistics, said the figures would be updated in September and that the ONS plans to compile and release them on an annual basis "to begin with".
"We are in no doubt that there is a bigger number that is also relevant to public data," she said. "We think it is important to have more transparency on public sector debt – looking at figures that go beyond standard monthly net debt and include state and public sector pensions."
The ONS numbers included a £1 trillion to £1.5 trillion liability for the Government's stakes in the part-nationalised banks, equivalent to the relevant portion of their total liabilities, £1.35 trillion for state pension liabilities, and £1.2 trillion for public sector pensions. _________________ www.lawyerscommitteefor9-11inquiry.org www.rethink911.org www.patriotsquestion911.com www.actorsandartistsfor911truth.org www.mediafor911truth.org www.pilotsfor911truth.org www.mp911truth.org www.ae911truth.org www.rl911truth.org www.stj911.org www.v911t.org www.thisweek.org.uk www.abolishwar.org.uk www.elementary.org.uk www.radio4all.net/index.php/contributor/2149 http://utangente.free.fr/2003/media2003.pdf
"The maintenance of secrets acts like a psychic poison which alienates the possessor from the community" Carl Jung
https://37.220.108.147/members/www.bilderberg.org/phpBB2/
Joined: 25 Jul 2005 Posts: 18335 Location: St. Pauls, Bristol, England
Posted: Fri Aug 05, 2016 11:48 pm Post subject:
Once contagion spreads from Italy to Germany, then to the UK, we will have a new banking crisis much worse than 2008
UK heading for new financial crisis 'on grander scale than 2008' with Bank of England 'asleep at the wheel', says ASI
Kevin Dowd, professor of finance and economics at Durham University, argues the Bank’s tests, which model various adverse economic scenarios, have a series of 'fatal flaws'
The Bank of England’s annual stress tests of the UK’s banks, designed to ensure Britain’s lenders will not be at the heart of another destructive financial crisis, have been branded “worse than useless”, by a new report.
Kevin Dowd, professor of finance and economics at Durham University, argues in a paper published today by the Adam Smith Institute that the Bank’s tests, which model various adverse economic scenarios each year such as a major fall in UK house prices or a Chinese property crash, have a series of “fatal flaws” and that the central bank is “asleep at the wheel”.
“The purpose of the stress-testing programme should be to highlight the vulnerability of our banking system and the need to rebuild it. Instead, it has achieved the exact opposite, portraying a weak banking system as strong".
Professor Dowd warns that the eurozone banking system is on the precipice of another crisis, which will also engulf the UK’s major lenders.
“Once contagion spreads from Italy to Germany and then to the UK, we will have a new banking crisis but on a much grander scale than 2007-08” he said.
“The Bank of England is asleep at the wheel again, and we will be back to beleaguered banksters begging for bailouts – and the taxpayer will be ripped off yet again, but bigger this time.”
Among the flaws in the Bank’s testing exercise identified by Professor Dowd are the fact that the stress tests rely on analytical “risk weights” for banks’ assets, which have been much criticised for potentially underplaying the true riskiness of various assets such as mortgages and sovereign debt.
Professor Dowd also cites the use of questionable estimates of the scale of banks' true exposures and the fact that the Bank of England, unrealistically, only models a single stress scenario at a time.
In addition, he says the Bank’s tests are less rigorous than those of the US central bank, and that if UK lenders were tested by the Federal Reserve all of them would fail.
Other former regulators have raised questions about the Bank’s reliance on stress tests to gauge the resilience of UK banks.
In a speech last year Robert Jenkins, a former member of the Bank’s Financial Policy Committee and now a senior fellow at Better Markets, said: “For stress testing to be effective regulators must know which risks to stress and by what degree to do so. However hardworking and intelligent they may be they are also human. They, like the bankers they regulate will at some point get it wrong.”
Mr Jenkins, along with Professor Dowd, argues that regulators’ efforts should be focused on requiring banks to raise considerably larger equity cushions to protect them against future risks that are simply unforeseeable to regulators today.
In relation to their total assets regulators such as the Bank of England are only requiring private banks to have equity cushions of up to 5 per cent. This would imply that if their assets fell by just 5 per cent they would be insolvent and, potentially, need a public bailout.
READ MORE
Oldest bank in world would go bust in crisis according to EBA
The European Banking Authority – a separate regulator – published the results of its own latest stress test exercise for 51 or the continent’s largest banks last Friday, including the Royal Bank of Scotland, Barclays, HSBC and Lloyds.
This found that in an “adverse” scenario HSBC’s capital cushion falls to 8.7 per cent, RBS to 8 per cent and Barclays to 7.3 per cent – all well above the level at which they would have been pressured to raise more equity.
Two previous EBA stress tests in 2011 and 2014 have been roundly criticised for giving a host of eurozone lenders, which subsequently needed to be rescued, a clean bill of health.
European bank stocks have fallen sharply this week, suggesting that investors are unconvinced by the latest EBA results too.
In its own latest stress test scenario for 2016 the Bank of England is modelling a fall in the price of oil to $20 a barrel, a 33 per cent slide in global property prices and a 4.3 per cent fall in UK GDP. The results are due to be published in the final quarter of this year.
UK's four biggest banks £155bn short of safety, warn experts
Bank of England accused of allowing banks to be overexposed in event of new financial crisis
Ben Chu @Benchu_ 8 hours ago122 comments
UK banks had to be rescued in 2008 and 2009 at huge cost to British taxpayers Getty
The UK’s four biggest banks would need to raise another £155bn in fresh capital to withstand a new financial crisis, despite the view of the Bank of England Governor that lenders have an adequate cushion to cope with further turmoil.
Those are the results of research from three respected financial academics – and add to a growing feeling that the Bank of England is dangerously undercooking its capital requirements on UK lenders in the face of swelling instability in financial markets.
UK banks had to be rescued in 2008 and 2009 at massive cost to British taxpayers.
Capital represents the shareholder funds in banks available to absorb losses. When losses are greater than the capital cushion the bank is bust and may need to tap state support if deemed to be systemically important by politicians and regulators.
In a new paper Viral Acharya of New York University, Diane Pierret of the University of Lausanne and Sascha Steffen of the University of Mannheim calculate that HSBC, Barclays, Lloyds and the Royal Bank of Scotland would need to raise $185bn (£155bn) of new equity between them to retain a 5.5 per cent capital cushion in a crisis, which is the benchmark of safety used in the past by the European Banking Authority.
That sum is not far away from the present market capitalisation of these banks, implying that they are massively overexposed.
The EBA’s stress test exercise last Friday showed the UK’s major lenders would see their capital diminished in another European economic crisis, but not below the 5.5 per cent level of so-called “risk-weighted assets” that would have created pressure for more equity injections.
The Bank of England’s Governor, Mark Carney, has made his unwillingness to require banks to raise more capital clear in recent months.
He wrote a letter to the Group of 20 finance ministers last month saying “authorities are committed to not significantly increasing overall capital requirements across the banking sector”.
"Policymakers have been sailing too close to the wind on bank capital"
Sir John Vickers
This stance has drawn criticism from a number of independent financial experts and also Sir John Vickers, who chaired the Government’s Independent Banking Commission in 2011.
In May, Sir John said that the Bank had adopted a “soft policy” on bank capital and stressed that his 2011 report, whose conclusions were accepted by Parliament, said that major lenders should have to fund their balance sheets with considerably more.
And in response to the latest academic calculations indicating a £155bn capital shortfall Sir John said: “The weakness of bank share prices is a further indication that policymakers have been sailing too close to the wind on bank capital.”
Robert Jenkins, a senior fellow at Better Markets and a former member of the Bank’s own Financial Policy Committee, said: “The balance sheets of these banks represent a multiple of UK GDP. That the adequacy of their loss absorbing capital is so hotly contested 8 years on from [the collapse of Lehman Brothers] shows the failure of financial reform.”
That view was echoed by Professor Kevin Dowd of Durham University earlier this week, who lambasted the Bank’s “stress test” regime for banks for “portraying a weak banking system as strong”.
"[This shows] the failure of financial reform.”
Robert Jenkins
The Bank of England declined to comment on the Acharya, Pierret, Steffen paper's findings but pointed to its response to the EBA stress test last week which said “major UK banks have the resilience necessary to maintain lending to the real economy, even in a macroeconomic stress scenario”.
The Bank is in the process of conducting its own new stress test on UK lenders, which is due to be published in the final quarter of this year.
Acharya, Pierret and Steffen argue that the broader European banking sector could be undercapitalised to the tune of around €890bn – a figure they calculated using stock market valuations of banks’ equity rather than the sums reported by lenders themselves.
Bank share prices have continued to fall since last Friday’s EBA stress test, implying investors are far from reassured by the fact that most lenders received a clean bill of health from the regulators.
The shares of the UK's major lenders are still trading well below the “book value” of their assets.
Lloyds is at 78 per cent of book value on a trailing 12 month basis, HSBC is at 70 per cent, and Barclays is at just 40 per cent. The price to book value of RBS (which is still 72 per cent owned by the UK government) is 42 per cent.
This implies that market think banks are overstating the real value of their assets or that their future capacity to earn profits in future is impaired - or both.
However, in a reflection of the Bank of England's thinking on this, in speech in March the Bank's executive director for financial stability, Alex Brazier, noted that despite the low price to book ratio of the UK's banks, their ability to borrow in financial markets was unimpaired. He said this fact suggested markets are not worried about banks' financial resilience in a crisis.
Business picture of the day
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Shares in RBS fell more than 7 per cent today after the majority state-owned lender unveiled a £2bn loss over the first half of 2016.
Barlcays and HSBC shares rose but the two lenders' share prices are still down 27 per cent and 42 per cent respectively over the past three years.
Lloyds's share price was also up today but the lender is 30 per cent lower than in 2013.
The share price of RBS, Barclays and Lloyds have also all been severely hit by the 23 June Brexit vote.
Global Financial Conflagration: The World of Fiat Money is Buckling under the Pressure of Unpayable Debts
On 19 April 2016, China was rolling out its new gold-backed yuan. Russia’s ruble has been fully supported by gold for the last couple of years. Nobody in the western media talks about it. Why would they? – A western reader may start wondering why he is constantly stressed by a US dollar based fiat monetary systems that is manipulated at will by a small elite of financial oligarchs for their benefit and to the detriment of the common people.
In a recent Russia Insider article, Sergey Glaziev, one of Russia’s top economists and advisor to President Putin said about Russia’s currency, “The ruble Is the most gold-backed currency in the world”. He went on explaining that the amount of rubles circulating is covered by about twice the amount of gold in Russia’s Treasury.
In addition to a financial alliance, Russia and China also have developed in the past couple of years their own money transfer system, the China International Payment System, or the CIPS network which replaces the western transfer system, SWIFT, for Russian-Chinese internal trading. SWIFT, stands for the Society for Worldwide Interbank Financial Telecommunication, a network operating in 215 countries and territories and used by over 10,000 financial institutions.
Up until recently almost every international monetary transaction had to use SWIFT, a private institution, based in Belgium. ‘Private’ like in the US Federal Reserve Bank (FED), Wall Street banks and the Bank for International Settlements (BIS); all are involved in international monetary transfers and heavily influenced by the Rothschild family. No wonder that the ‘independent’ SWIFT plays along with Washington’s sanctions, for example, cutting off Iran from the international transfer system. Similarly, Washington used its arm-twisting with SWIFT to help Paul Singer’s New York Vulture Fund to extort more than 4 billion dollars from Argentina, by withholding Argentina’s regular debt payments as was agreed with 93% of all creditors. Eventually Argentina found other ways of making its payments, not to fall into disrepute and insolvency.
All of this changed for Argentina, when Mauricio Macri, the new neoliberal President put in place by Washington, appeared on the scene last December. He reopened the negotiations and is ready to pay a sizable junk of this illegal debt, despite a UN decision that a country that reaches a settlement agreement with the majority of the creditors is not to be pressured by non-conforming creditors. In the case of Argentina, the vulture lord bought the country’s default debt for a pittance and now that the nation’s economy had recovered he wants to make a fortune on the back of the population. This is how our western fraudulent monetary system functions.
China’s economy has surpassed that of the United States and this new eastern alliance is considered an existential threat to the fake western economy. CIPS, already used for trading and monetary exchange within China and Russia, is also applied by the remaining BRICS, Brazil, India and South Africa; and by the members of the Shanghai Cooperation Organization (SCO), plus India, Pakistan and Iran, as well as the Eurasian Economic Union (EEU – Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan). It is said that CIPS is ready to be launched worldwide as early as September 2016. It would be a formidable alternative to the western dollar based monetary Ponzi scheme.
The new eastern monetary sovereignty is one of the major reasons why Washington tries so hard to destroy the BRICS, mainly China and Russia – and lately with a special effort of false accusations also Brazil through a Latin America type Color Revolution.
In addition, the Yuan late last year was accepted by the IMF in its SDR basket as the fifth reserve currency, the other four being the US dollar, the British pound, the euro and the Japanese yen. The SDR, or Special Drawing Right, functions like a virtual currency. It is made up of the weighted average of the five currencies and can be lent to countries at their request, as a way of reducing exchange risks. Being part of the SDR, the yuan has become an official reserve currency. In fact, in Asia the yuan is already heavily used in many countries’ treasuries, as an alternative to the ever more volatile US dollar.
It is no secret, the western dollar-led fiat monetary system is on its last leg – as eventually any Ponzi scheme will be. What does ‘fiat’ mean? It is money created out of thin air. It has no backing whatsoever; not gold, not even the economic output generated by the country or countries issuing the money, i.e. the United States of America and Europe. It is simply declared “legal tender’’ by Government decree.
No pyramid scheme is sustainable in the long run and eventually will collapse. It was invented and is used by a small invisible upper crest of elite making insane amounts of profit on the back of the 99% of us. Since these elitists are in control of the media with their lie propaganda, as well as the warmongering killing machine, US armed forces, NATO, combined with the international security and spy apparatus, CIA, MI6, Mossad, DGSE, the German Federal Intelligence Service (BND) and more, we are powerless – but powerless only as long as we ignore what’s really going on behind the curtain.
Our western monetary system is based on debt has all the hallmarks of a failing global monster octopus. The US banking system was deregulated in the 1990’s by President Clinton. The European vassals followed suit in the early 2000’s. About 97% of all the money in circulation in the western world is ‘made’ by private banks by a mouse click in the form of ‘loans’ or debt. Every loan a private bank hands out is a liability on that bank’s books; a liability that bears interest, the key generator of the banks’ profits. Profit from thin air! No work, no production, no real added value to the economy.
If and when the banks within this web of debt begin recalling their outstanding liabilities, they may set a non-stoppable avalanche in motion – leading to a chaotic end of the system. This end-run may have just begun. We have seen a gradual build-up since the end of WWII with the armament of the Cold War farce, and a high point with the manufactured sub-prime crisis of 2007 / 2008 / 2009, prompting an artificial and endless global economic crisis which may come crashing down in 2016 / 2017.
The damage may be humongous, leaving behind chaos, poverty, famine, misery – death. With the invisible ruling elite having cashed in, remaining on top and being liable to start again from scratch. – If we let them. It always boils down to the same: An uninformed people can be manipulated at will and is left in awe when hit by unexpected events, like acts of terror by bombs or banks.
Let us be crystal clear – we are all uninformed as long as we listen to and believe in the mainstream media – which are controlled by six Anglo-Zionist media giants, feeding the western public with 90% of the information, the so-called ‘news’ that we consume so eagerly every day; the barrage of lies that repeat themselves in every western country every hour on the hour – and, thus, become the truth. Period.
We must get out of our comfortable armchairs, listen to that innermost spark in the back of our minds, telling us against all avalanches of lies that there is something wrong, that we are being fed deception. We have to dig for the truth. And it is there – on internet, on alternative media, like Global Research, Information Clearing House, VNN, The Saker, NEO, Russia Today, Sputnik News, PressTV, TeleSUR – and many more credible sources of truth-seekers.
Back to the impending collapse. – The ground rules for our pyramid monetary scheme have been laid in 1913 by the creation of the FED. Again, the FED is an entirely private, Rothschild dominated banking institution that serves as the US Central Bank. It is the omnipotent dollar making machine. It was fraudulently and secretly conceived in 1910 on Jekyll Island, Georgia, and described by Jekyll Island history (http://www.jekyllislandhistory.com/federalreserve.shtml ) as the “duck hunt” which
“included Senator Nelson Aldrich, his personal secretary Arthur Shelton, former Harvard University professor of economics Dr. A. Piatt Andrew, J.P. Morgan & Co. partner Henry P. Davison, National City Bank president Frank A. Vanderlip and Kuhn, Loeb, and Co. partner Paul M. Warburg. From the start the group proceeded covertly. They began by shunning the use of their last names and met quietly at Aldrich’s private railway car in New Jersey.”
The concoction of these secretive “duck hunters” became in 1913 the privately owned Rothschild dominated Federal Reserve System, the US central bank by deceit.
After signing the FED act into existence, President Woodrow Wilson declared,
“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.”
The Anglo-Saxon system had a central bank in England since way back in 1694. It was then already controlled by the Rothschilds, as was the entire banking system. Baron Nathan Mayer Rothschild once declared:
“I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man that controls Britain’s money supply controls the British Empire, and I control the British money supply.”
The Rothschild family’s fortune cannot be properly estimated, but it must be in the trillions. What Baron Nathan Mayer Rothschild may have said some 300 years ago, still holds true to this day.
No wonder, breaking loose of this sham monetary scheme is number one priority of most countries that treasure sovereignty, autonomy and freedom, though they do not dare say so openly, lest the empire lashes out at them punishing them with the very financial terror they want to escape from. And lashing out at the unaligned world the empire does, like a dying beast, attempting to pull with it much of the living world into its own shoveled grave.
Is it therefore coincidence or a rather a purposefully planned convergence of several events as a last ditch effort first to ravage then to salvage as much as possible before the collapse?
On 10 April, Zero Hedge reports “Austria Just Announced A 54% Haircut of Senior Creditors in First “Bail In” Under New European Rules”. The Austrian “bad bank”, the failed Hypo Alpe Adria, that became Heta Asset Resolution AG after the government’s nationalization, found a US$ 8.5 billion hole in its balance sheet, enough to trigger the new European ‘bail-in’ rule. Is it coincidence that also in Austria a major bank failure triggered the Great Depression also on a 10th of April – in 1931? – This is a first in Europe. Be prepared for others to follow, as over-extension of European banks is estimated in excess of a trillion dollars.
On 15 April, the New York Times reported that – Five of Wall Street’s eight largest banks are in defiance of the US banking regulator. The FED and FDIC said that “JP Morgan, Chase, Bank of America, Wells Fargo, State Street and Bank of New York, all lacked ‘credible‘ plans to enter bankruptcy in the event of a financial crisis.” These banks have until October 2016 to comply. Under the new rules a tax-payer bail-out would be unlikely. Hence ‘bail-ins’ could affect millions of depositors and shareholders, their funds being stolen in order to self-rescue the too-big-to-fail banks. After all, non-compliance with the regulator’s requests, or insolvency, can easily be manufactured as a legal base for stealing common people’s savings. No worries, the TBTF banks will not go away, but your savings may.
The CIA released Panama Papers (for who still doubts about the CIA involvement in the release of the Panama Papers,
aimed in a most rudimentary way at defaming the ‘usual suspects’, Presidents Putin and Assad, as well as Iran, Venezuela, Brazil, of course – and others. Strangely no notable EU or US citizens or corporations were on the list. Would anybody seriously believe that Mr. Putin, a former KGB agent, would be so ignorant as to putting his fortune (even if he had any to hide) into Panama, the epitome of a US puppet state, where you can’t flush a toilet without Washington knowing it?
Some token neocons appear in the published papers, like Argentina’s new ‘Washington appointed’ President Mauricio Macri, who is running amok ruining his country. Within less than four months he has rolled Argentina’s economy back by ten years, raising poverty from below 10% in November 2015 to 34% by the end March 2016. The Empire needs him to keep gradually turning Argentina into chaos, however not too quickly, lest he may be ‘deposed’ and replaced by a US adversary – that would not at all be appreciated in Washington. For the types of Macri that made it on the list, the Panama Papers are a warning signal to keep them in-check.
The publication of the Panama Papers may also be an incentive for US citizens and corporations to bring home trillions of undeclared dollar holdings stacked away in overseas tax havens into homeland financial shelters like those in Delaware, Wyoming, South Dakota and Nevada, thereby helping strengthen the gradually decaying dollar.
Simultaneously, some European countries and Japan introduced negative interest rates, so as to increase monetary liquidity, thereby hoping stimulating an ever stagnant economy. That’s the pretext. In reality however, negative interests are but a precursor to a wholly bank controlled financial system. Normally ‘bail-ins’ and negative interest would cause a run on the banks. This has not happened yet.
In Switzerland, one of the first countries to introduce negative interests, the Swiss National Bank reported that the demand of the 1,000 franc notes – one of the world’s highest value denominations (apparently to be maintained despite ECB Draghi’s call for elimination of high denomination bank notes) – increased by 17% (by CHF 4.7 billion – US$ 4.85 billion) in December 2014, the month following the introduction of negative interests. May it be an indication that the Swiss have quietly started hoarding big-denomination cash?
Future hoarding and runs on the banks will be countered by the introduction of a cashless society, i.e. all monetary transactions will gradually become electronic. The process has already begun. In Sweden and other parts of Europe, as well as Japan, cashless supermarkets and department stores claim big success, especially with the young consumers, who happily play along paying electronic cashiers by swiping their cell phones in front of an electronic eye.
The Young and Innocent – if they only knew that the banking oligarchs want to control their money and enslave them with a ‘fun gadget’, they may decide to resist. But well know those who control the system that the young are the drivers of the future. We, the old resistance will eventually die out. Problem solved. – But we are not dead yet. The Times are A-Changing… (Bob Dylan, 1964).
The nefarious trio – ‘bail-ins’, negative interests, and a cash free society – will make living in the industrialized ‘first world’ a sheer nuisance, a stressful dance on toes, as the emperor’s proverbial Damocles Sword hangs intimidatingly above us.
Washington may have one last joker up its sleeve – reintroducing the ‘gold standard’, the very gold standard that Nixon abandoned in 1971. The US have also been accumulating huge amounts of gold over the past 25 years. A new US dollar gold standard would most likely be set at a ratio that would wipe out all US debt, including future ‘unmet obligations’ (GAO – General Accounting Office) of about US$ 125 trillion. It would attempt to keep the western industrialized world in Washington’s orbit, but might lose most of the developing world owning natural resources coveted by the west. These countries oppressed and colonized for centuries are likely to gravitate to the new China-Russia alliance – leaving the outsourced and outwitted west alone without workforce – and with a massive but outdated military power.
To counter the build-up of this criminal last ditch sham by the western Zionist banking czars, China and Russia have been preparing over the last few years an independent financial system, delinked from the US dollar and which now incorporates the BRICS, the SCO nations, as well as the Eurasian Economic Union. This association of countries and economies account for about half the world’s population and at least one third of the globe’s economic output; a fact totally ignored by the mainstream media, for obvious reasons. The Machiavellian sinking ship does not want its passengers to jump to safety.
The 19 April 2016, announcement by China of its gold-backed yuan, no longer convertible into dollars, may just trigger an economic shift into the ‘eastern camp’. Many countries are wary and tired of western exploitation, enslavement, threats of sanctions, oppression and an ever present danger of invasion by the killing machine. The decoupling of the dollar by a third of the world economy may indeed open new horizons, creating new alliances, new hope for a more equal and just world.
Joined: 25 Jul 2005 Posts: 18335 Location: St. Pauls, Bristol, England
Posted: Thu Feb 16, 2017 3:21 am Post subject:
Britain's national debt poised to hit £1.7trillion - with interest payments approaching £40bn a year
The UK owed £1,698,100,000,000 at the end of 2016 – or £26,000 per person
Experts say mounting debt levels are storing up problems for future generations
Chancellor Philip Hammond has ditched George Osborne's target of balancing the books by the end of the decade
Burden: The UK owed a record £1,698,100,000,000 at the end of 2016
Britain's ballooning national debt rose by £250million a day last year – leaving it just shy of £1.7trillion.
Figures from the Office for National Statistics yesterday showed the UK owed a record £1,698,100,000,000 at the end of 2016 – or £26,000 per person.
Analysts said mounting debt levels were storing up problems for future generations – and argued that interest payments of approaching £40billion a year could be better spent on crucial services such as social care.
The ONS report came as Philip Hammond published a new 'Charter for Budget Responsibility' setting out his plans to bring the public finances back under control.
The Chancellor has ditched George Osborne's target of balancing the books by the end of the decade – and instead promised to do so 'as soon as possible in the next Parliament' which is expected to run from 2020 to 2025.
But the national debt will not start falling until Britain runs a surplus – something that will not happen until well into the next decade under current government plans.
A further £91.5billion was added to the debt mountain last year alone – a staggering £250million a day or nearly £2,900 per second – as the country continued to live beyond its means.
Debts pile up when governments spend more on public services, welfare payments and other projects than they receive in tax.
It took Britain 315 years to rack up its first £850billion of debt, having started borrowing in 1694 when King William III raised £1.2million to wage war on France.
But the next £850billion has taken just over seven years.
The ONS noted that 'debt has been built up by successive government administrations over many years' and is now worth 86.2 per cent of national income.
Tyler Durden's picture by Tyler Durden
Mar 14, 2017 10:55 PM
The following is an interesting overview, via X22Report.com, of our current economic situation and the behavior of the elites going into the next stage of the collapse process.
As Alt-Market's Brandon Smith notes, take special note of the information on the abrupt decline in bank issued loans (debt); is it not rather coincidental that as the Federal Reserve presses forward with the interest rate hiking process that credit issuance suddenly freezes up?
This is what I have been warning about since last year, and now we are watching it unfold...
The Elite Are Prepped And Ready For The Economic Crisis
https://www.youtube.com/watch?v=8y1pYOeyFuU _________________ --
'Suppression of truth, human spirit and the holy chord of justice never works long-term. Something the suppressors never get.' David Southwell
http://aangirfan.blogspot.com http://aanirfan.blogspot.com
Martin Van Creveld: Let me quote General Moshe Dayan: "Israel must be like a mad dog, too dangerous to bother."
Martin Van Creveld: I'll quote Henry Kissinger: "In campaigns like this the antiterror forces lose, because they don't win, and the rebels win by not losing."
So what is this so called "debt"? It is the interest accrued on the "loans" given to the government by a privately owned central bank which creates the money from thin air. The interest cannot ever be repaid because it does not exist until created at which point even more interest is due. The solution is for the government to give the bank a piece of pretty paper with a notional value of a gazillion pounds and tell them that settles their (our) debt and to keep the * change.
Good point
What this tells us is how our elected governments half been stuffed with stooges & imbeciles & are now being treated as a loan shark would an impoverished victim
item8 wrote:
So what is this so called "debt"? It is the interest accrued on the "loans" given to the government by a privately owned central bank which creates the money from thin air. The interest cannot ever be repaid because it does not exist until created at which point even more interest is due. The solution is for the government to give the bank a piece of pretty paper with a notional value of a gazillion pounds and tell them that settles their (our) debt and to keep the * change.
This is How 37 Banks Became 4 Banks in Just 2 Decades
By Visual News
It’s been 8 whole years since the financial crisis, but countries around the world are still feeling the fallout. Meanwhile, the banking sector, which largely precipitated the crash, is reporting record profits and exactly zero top Wall Street executives have been held responsible.
At the same time, our banking, loan, and investment options are increasingly limited to a select few big banks. These have been labeled “too big to fail,” and it’s not hard to see why. As this graphic shows, from 1990 to 2009, 37 banks merged into just 4. One failure will now be the same as many.
This was an issue in 2009, and it still is today. As the New York Times just reported:
These days, the ‘too big to fail’ banks have less competition than ever, they get their raw material — cash from depositors — nearly free, and they have never had more ways to make vast amounts of money.
With these sobering facts on the table, banking reform is a hotly debated issue in the upcoming presidential election. Democratic candidate Bernie Sanders is gaining ground and making it one of his key campaign points, while Hillary Clinton is defending paid speaking engagements for Wall Street banks.
How important are these issues to the American public? This election will be a strong indicator
https://www.visualnews.com/2016/01/25/37-banks-became-4-banks-just-2-d ecades/ _________________ --
'Suppression of truth, human spirit and the holy chord of justice never works long-term. Something the suppressors never get.' David Southwell
http://aangirfan.blogspot.com http://aanirfan.blogspot.com
Martin Van Creveld: Let me quote General Moshe Dayan: "Israel must be like a mad dog, too dangerous to bother."
Martin Van Creveld: I'll quote Henry Kissinger: "In campaigns like this the antiterror forces lose, because they don't win, and the rebels win by not losing."
Joined: 25 Jul 2005 Posts: 18335 Location: St. Pauls, Bristol, England
Posted: Mon Apr 17, 2017 11:18 pm Post subject:
Interesting
cogbias wrote:
FinTech, as it's known, runs all the data systems required digitally to make economies work or fail.
The modern day global financial conspiracy would involve FinTech, whether that be rigging election machines in the U.S or inputting of any data queries from banking, to data projections, crowd funding, the dark web, college sums data.
BRICS would be a real threat, to the G8 and this is what links a lot of different conspiracies together.
FinTech has been completely open to fraud because of a complete lack of governing regulator.
Want to cheat flight purchase data, want to cheat your share price? FinTech or the Stock Market. The fear might be, what if FinTech becomes the stock market, and bypasses the banks?
What if you could capture the tech sector and re-direct it towards finance and analytics. Is that how Amazon's profits went up five fold and they really do hold everyone's data.
Unsurprisingly it is also possible to use this data to guide government policy.
If you have consultants brought into think tanks, you could base ideas and back them up using scientific data. What information you can garner from the public could easily go into specifically designed proprietary software, for say, austerity measures. Or finding the undecideds during an election.
You could basically have a situation where, if it is in some ways not accurate, any variables could seriously screw up your budget which clearly happened before 9/11: Rumsfeld didn't know what the attack was going to be. I am insinuating he thought it would be hacking fraud, not a hijacking, it's like two letters different. He knew about the war games.
It could be a coded message for Fintech presonnel to start moving money around. Numbers, names etc. Anywhere digital systems are used.
Rumsfeld announces £2.3 Trillion had vanished, the very next day you'd think the President would be on the case. Instead he's in a school somewhere, made to look like a confused child.
So it's either Fin Tech stealing the money digitally, or Fin Tech being told to move some money around. Or it's telling every one to go operational or he simply has no idea what is happening. I'd bet on the latter but you could cause so much mayhem, going in and changing a few numbers here and there. You can have the largest military budget on the planet, but if you don't have enough firewall protection????
Another thing i haven't looked into is the dot com crash that happened at the same time.
"The stock market crash of 2000–2002 caused the loss of $5 trillion in the market value of companies from March 2000 to October 2002.[15] The September 11, 2001, attacks accelerated the stock market drop; the NYSE suspended trading for four sessions. When trading resumed, some of it was transacted in temporary new locations."
Et voilla, you have complete control over the tech industry which can then be targeted at financial tech. Facebook, Google, Amazon.....all the data you need for the next 100 years.
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