Clipmarks | rmowery's Economy collection

World Banker and His Cash Return Home

Mon, 17 Mar 2008 12:31:09 GMT

clipped by: rmowery

World Banker and His Cash Return Home

SINDHEKELA, India — An important man from the World Bank recently arrived in this isolated village, where monkeys prowl rutted roads, rain pours through the school roof and the native son who achieved the most did so by going away.

Lessons about global poverty were waiting, but so were his sisters’ chapattis. Migrant and migration scholar, Dilip Ratha was home.

No one has done more than Mr. Ratha to make migration and its potential rewards a top-of-the-agenda concern in the world’s development ministries. And no place has done more to shape his views than this forgotten hamlet, where he studied under the lone streetlight and began a poor boy’s improbable journey to the front ranks of an elite field.

“When I think about the effects of migration, I think about Sindhekela,” he said.

Tags: cash, money, migration, india

Rescue Me: A Fed Bailout Crosses a Line

Mon, 17 Mar 2008 03:49:24 GMT

clipped by: rmowery
clipper's remarks: Maybe all the common people that owe creditors should start requesting the government bail them out too. This will be very interesting to watch and see what spiral it churns.

Clip Source: www.nytimes.com

Rescue Me: A Fed Bailout Crosses a Line

WHAT are the consequences of a world in which regulators rescue even the financial institutions whose recklessness and greed helped create the titanic credit mess we are in? Will the consequences be an even weaker currency, rampant inflation, a continuation of the slow bleed that we have witnessed at banks and brokerage firms for the past year?

Or all of the above?

Stick around, because we’ll soon find out. And it’s not going to be pretty.

Tags: government, economy, fed bail out

Fed Chief Shifts Path, Inventing Policy in Crisis

Mon, 17 Mar 2008 03:43:34 GMT

clipped by: rmowery
clipper's remarks: Fail to Plan......Plan to fail.

Clip Source: www.nytimes.com

Fed Chief Shifts Path, Inventing Policy in Crisis

WASHINGTON — As chairman of the Federal Reserve, Ben S. Bernanke has long argued that a central bank should base its policies as much as possible on consistent principles rather than seat-of-the-pants judgment.

But now, as the meltdown in credit markets threatens major institutions on Wall Street and a recession appears inevitable, Mr. Bernanke is inventing policy on the fly.

“Modern monetary policy-making puts a lot of weight on rules, but there is no rule book for an economic crisis,” said Douglas W. Elmendorf, a senior fellow at the Brookings Institution and a former Fed economist.

Tags: economy, federal reserve, recession, depression, wall street

Fed Aids Takeover of Bear Stearns and Cuts Rates

Mon, 17 Mar 2008 03:41:52 GMT

clipped by: rmowery
clipper's remarks: Yeah - this will fix everything.

Clip Source: www.nytimes.com

Fed Aids Takeover of Bear Stearns and Cuts Rates

WASHINGTON — Hoping to avoid a systemic meltdown in financial markets, the Federal Reserve on Sunday approved a $30 billion loan guarantee to engineer the takeover of Bear Stearns and announced an open-ended lending program for the biggest investment firms on Wall Street.

In a third move aimed at helping banks and thrifts, the Fed also lowered the rate for borrowing from its so-called discount window by a quarter of a percentage point, to 3.25 percent.

The moves amounted to a sweeping and apparently unprecedented attempt by the Federal Reserve to rescue the nation’s financial markets from what officials feared could be a chain reaction of defaults.

Tags: feds, federal government, us, stocks, fed reserve, economy

Troubles getting deeper for U.S., its fresh water supply

Mon, 17 Mar 2008 01:55:33 GMT

clipped by: rmowery

Clip Source: www.freep.com

Troubles getting deeper for U.S., its fresh water supply

WASHINGTON -- Like the old song, "Love and marriage, love and marriage ... you can't have one without the other," so it goes with energy and water.

It takes a lot of water to produce energy. It takes a lot of energy to provide water. The two are inextricably linked, and claims on each are rising.

"The water supply is as critical as oil," said Charles Groat of the University of Texas in Austin, a geologist and expert on the problem.

In return, "water use requires a tremendous amount of energy," said Peter Gleick, president of the Pacific Institute for Studies in Development, Environment and Security in Oakland, Calif.

Tags: water, economy, energy, power

Which bank is going to follow the Bear?

Mon, 17 Mar 2008 01:52:10 GMT

clipped by: rmowery

Clip Source: business.timesonline.co.uk

Which bank is going to follow the Bear?

So who is next? As advisers to Bear Stearns struggle to find a buyer or funding in the next 28 days, Wall Street, the City and the financial district in Tokyo were scrabbling to find out who is the most exposed to Bear Stearns, either through loans or trading positions.

Traders in all three centres were panicking even for those banks not directly exposed to Bear. They feared that the problems experienced at the stricken bank signalled that the credit crisis has deteriorated to a new level.

Yesterday, traders began to look anxiously at the robustness of Lehman Brothers, which, although bigger than Bear, is small compared with JPMorgan Chase, Morgan Stanley and Citigroup.

Shares in Lehman dropped 11 per cent yesterday, a far bigger fall than its other rivals, which saw their stock decline by about 3 per cent.

Tags: economy, depression, bear stearns, jp morgan

Wall Street fears for next Great Depression

Mon, 17 Mar 2008 01:50:41 GMT

clipped by: rmowery

Clip Source: www.independent.co.uk

Wall Street fears for next Great Depression

Wall Street is bracing itself for another week of roller-coaster trading after more than $300bn (£150bn) was wiped off the US equity markets on Friday following the emergency funding package put together by the Federal Reserve and JPMorgan Chase to rescue Bear Stearns.

One UK economist warned that the world is now close to a 1930s-like Great Depression, while New York traders said they had never experienced such fear. The Fed's emergency funding procedure was first used in the Depression and has rarely been used since.

A Goldman Sachs trader in New York said: "Everyone is in a total state of shock, aghast at what is happening. No one wants to talk, let alone deal; we're just standing by waiting. Everyone is nervous about what is going to emerge when trading starts tomorrow."

Tags: economy, depression, wall street

Fed takes boldest action since the Depression to rescue US mortgage industry

Sat, 15 Mar 2008 18:11:03 GMT

clipped by: rmowery
clipper's remarks: How low can it go? Almost feels like that party game.

Clip Source: www.telegraph.co.uk

Fed takes boldest action since the Depression to rescue US mortgage industry

The US Federal Reserve has taken the boldest action since the 1930s, accepting $200bn of housing debt as collateral to prevent an implosion of the mortgage finance industry and head off a full-blown economic crisis.

The Bank of England, the key European central banks, and the Bank of Canada all joined in a co-ordinated move with a mix of policies to halt the dowward spiral in the credit markets, expanding on the "shock and awe" tactics used late last year.

The Fed's dramatic step came after an emergency conference call by governors on Monday night. It followed the melt-down of the US chartered agencies -- Fannie Mae, Freddie Mac, and other lenders -- which together guarantee 60pc of the entire US home loan market. Fannie Mae's share price fell 19pc in panic trading on Monday after Barron's magazine said it may need a rescue package.

Tags: housing, government, mortgage, debt, depression, us

Dollar plunge sets off global alarm bells

Sat, 15 Mar 2008 18:07:15 GMT

clipped by: rmowery

Clip Source: www.telegraph.co.uk

Dollar plunge sets off global alarm bells

The dollar has plummeted against all major currencies on dire US retail sales and fears that the Federal Reserve may need to slash interest rates further to stop the downward spiral in the credit markets.

The greenback broke below 100 yen in a day of wild trading, setting off alarm bells at Japan's Keidanren industry lobby. It touched a record $1.5620 against the euro and came within a whisker of parity with the Swiss franc for the first time in history.

The plunge came amid an investor flight into commodities, seen as a way of insulating wealth from the dollar's decline. In the US, crude oil reached a record $111 a barrel despite rising inventories.

A shock fall of 0.6pc in February retail sales cemented fears that the US is sliding into a fully fledged recession. The markets are now pricing in a three-quarter point cut in rates to 2.25pc next week.

Tags: dollar, economy, currency, economic failure

Fallon's Exit Provokes Concern on Path of Bush's Iran Policy

Wed, 12 Mar 2008 18:15:37 GMT

clipped by: rmowery
clipper's remarks: Ok - the most intelligent person is now officially departing.

We are now left with the likes of a Lenny & George in the Whitehouse running the show.

Clip Source: www.bloomberg.com

Fallon's Exit Provokes Concern on Path of Bush's Iran Policy

March 12 (Bloomberg) -- Admiral William Fallon's resignation as U.S. commander in the Middle East provoked criticism that President George W. Bush won't tolerate dissent and fed speculation his Iran policy could become more confrontational.

``Congress needs to determine immediately whether Admiral Fallon's resignation is another example of truth tellers being forced to the sidelines in the Bush administration,'' said Senator John Kerry, the Massachusetts Democrat who lost to Bush in the 2004 election. ``His departure must not clear the way for a rush to war with Iran.''

Defense Secretary Robert Gates announced that Fallon, 63, was resigning over perceived differences on Iran policy with the Bush administration as Fallon was starting an Iraq visit yesterday. Fallon will retire from the Navy at the end of March.

Tags: goverment, military, bush, fallon

Senators: Where is Iraq's oil money going?

Mon, 10 Mar 2008 05:16:27 GMT

clipped by: rmowery

Clip Source: www.cnn.com

Senators: Where is Iraq's oil money going?

BAGHDAD, Iraq (CNN) -- Two senators are asking congressional investigators to look at Iraq's oil revenues and see if the war-ravaged nation can pay for its own reconstruction, an effort that has been bankrolled to this point mostly by U.S. taxpayers.

Carl Levin, D-Michigan, and John Warner, R-Virginia, said in their Friday letter to the Government Accountability Office that Iraq has "tremendous resources" in banks worldwide but is doing little to improve security and reconstruction efforts.

Iraqi officials did not immediately respond to the senators' allegations.

"We believe that it has been overwhelmingly U.S. taxpayer money that has funded Iraq reconstruction over the last five years, despite Iraq earning billions of dollars in oil revenue over that time period that have ended up in non-Iraqi banks," wrote the senators, who are their party's top members on the Armed Services Committee.

Tags: iraq, revenue, oil, us

US Fed releases $200bn as credit crisis hits new depths

Mon, 10 Mar 2008 05:02:30 GMT

clipped by: rmowery

Clip Source: business.timesonline.co.uk

US Fed releases $200bn as credit crisis hits new depths

The global credit crisis plunged to new depths yesterday as persistent fears over the collapse of a large financial institution caused funding markets to dry up and forced the US Federal Reserve to make available up to $200 billion (£99.3 billion) of emergency financing.

The Fed said that a “rapid deterioration” in the credit markets in recent days had prompted it to begin a series of fresh cash injections in an effort to shore up the balance sheets of America’s stricken banks. Unemployment also shot up in the US last month, adding to the gloom. US stocks tumbled, dragging the Dow Jones industrial average down 138.40 points to 11.902.00. Treasury prices jumped and the dollar fell to record lows.

Tags: us economy, bush, debt crisis

Glen BEck: Don't Follow her on economy

Thu, 28 Feb 2008 21:22:28 GMT

clipped by: rmowery

Clip Source: www.cnn.com

Glenn Beck: Don't follow herd on the economy

NEW YORK (CNN) -- "The people who survived the Great Depression were the ones who had money to buy when everybody else was selling." -- My grandfather

DEFCONOMY FIVE

How you'll know we're here: The housing downturn turns into a free fall, making it the worst collapse in our country's history. That not only triggers massive numbers of foreclosures and lost household wealth, but it also sets off another large wave of bank write-downs.

Odds we get here: Roubini told me that it's "extremely likely, even unavoidable" that we hit this stage because "the excess supply of new homes in the market is like we've never seen before." Prices, he believes, "need to fall another 10 to 20 percent before that clears."

DEFCONOMY FOUR

Tags: economy, us, depression, reccession

60 Years of Empire

Mon, 14 Jan 2008 15:54:23 GMT

clipped by: rmowery

Clip Source: www.presstv.ir

60 Years of Empire

By Saul Landau, Counterpunch.com

Look at 2008 symbolically! Some 60 years ago, the United States emerged as the world power. Henry Luce formally announced the arrival of "The American Century" even before the country entered World War II.

Luce thought the United States should become the world's missionary, spreading Christian values and democracy. US history had woven together a people with noble purpose, Luce argued, and had "the most exciting flag of all the world and of all history," blowing toward the "triumphal purpose of freedom."

Luce, owner of the publishing empire (Time, Life and Fortune), waxed eloquent, calling on all Americans "each to his own measure of capacity, and each in the widest horizon of his vision, to create the first great American Century. (February 1941 Life; see also Philip S Golub's October 2007 essay in Le Monde Diplomatique.)`

Tags: goverment, us, world, stalin, truman

The new world order that threatens Uncle Sam

Mon, 24 Dec 2007 07:12:57 GMT

clipped by: rmowery

Clip Source: observer.guardian.co.uk

The new world order that threatens Uncle Sam

America's next President faces the daunting task of countering Russia and China as they aggressively challenge struggling Western liberal democracies

In 1992, I met Francis Fukuyama when he was touring his book The End of History and the Last Man and explaining to anyone who would listen that the world had reached a point where there was no longer any meaningful dispute between Marxism and the market. More particularly, he said, it looked as though Western liberal democracy was becoming 'the final form of human government'.