Global banking crisis: explanations

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martien007
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Global banking crisis: explanations




by martien007 » 28/06/08, 00:48

It's excellent ! if you have the courage and the patience, go to the end. We discover the real world crisis that is playing out ... and it's scary:

http://watchthebank.20minutes-blogs.fr/

short extract:
In summary, it is necessary to regulate but to regulate is useless for the moment until the question of tax havens is not dealt with at the international level. Angela Merkel and Nicolas Sarkozy worry about Hedge Funds, but she should also worry more explicitly about tax havens.
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bham
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by bham » 28/06/08, 09:25

Interesting site but which article are you quoting from us?
"stock market crash on the banks" or another?
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by martien007 » 28/06/08, 10:25

bham wrote:Interesting site but which article are you quoting from us?
"stock market crash on the banks" or another?

Hello,

it is in "the weight of the Hedges Funds" towards the end, but everything is edifying, in particular the 2 books and also the book on the war in Iraq "The war at 3000 billion dollars" by Joseph Stieglietz (I believe, not rechecked).

Look, I found this in agoravox:

Double financial crisis: who is responsible? -- Part 1
-------------------------------------------------- ------------------------------
By Frédéric Laurent (*)

How do you want to regain serenity and start firmly in a bullish configuration when thunderstorms roar from all sides? If the worst seems to have been avoided, keep in mind that the economic situation is doubly in crisis.

First of all, the banking crisis, which we are beating down on your ears at every moment. Do not think that it is history of filling paper ... No, unfortunately there is a good reason for this. This is one of the worst crises we are witnessing, and the banks are the reflection of an economy.

You probably know the saying: "when Wall Street sneezes, Europe catches cold". Well, with the banks it's a bit the same story. They took enormous risks in the distribution of credits at all costs, removing them from their balance sheet by the game of securitization to no longer see them, and the boomerang effect makes them face the consequences of their mistakes.

Consequence: the economy is doing badly. From the moment the crisis broke out, the banks drastically restricted their credit offers. And without credit, our modern world looks gray, because businesses and individuals can no longer borrow, and therefore invest.

Hello plumber? We have a slight liquidity leak ... With this kind of phenomenon, we can clearly see that the banks are the guarantors of future growth. So you think, when they close the tap ... This crisis has already caused $ 400 billion in provisions or losses at the level of banks. A study by Goldman Sachs presented last week threw a chill over New York. Indeed, it estimates that competing banks will have to raise up to $ 65 billion in capital to face new impairments, which will continue until 2009.

Automatically, this information weighed down Wall Street by causing the Dow Jones to fall. I quote Goldman Sachs analysts: "Banks are not going to start getting better until a peak in credit costs is in sight. Weaker banks should not benefit from consolidation as deals between banks are always less numerous when credit deteriorates; the big banks are handicapped by their own asset problems and by accounting requirements ".

This situation is likely to continue until credit conditions improve and until the banks regain confidence by refinancing among themselves. The second crisis is taking place. It started well in the United States, where the banks sought to sell the property, objects of their debts. This had the effect of creating an increase in real estate stocks, causing an immediate fall in prices. For the moment, this fall is estimated at 15% in the 20 largest American cities, but this is just the beginning.

You should know that it all started the day the Fed, and its president at the time Alan Greenspan, pursued an aggressive policy of lowering its key rates. He wanted to counter the bursting of the Internet bubble and compensate for the losses suffered on the equity markets by helping to value real estate assets and thereby restart the American economy.

The Fed has implemented the expansion tank principle. On the one hand, the wealth of the Americans fell through the fault of the equity markets, on the other, it was enhanced by an appreciation of real estate assets. Simple, practical, but very dangerous, because this kind of policy helps to maintain speculation on one side or the other. And when you create a bubble, one day or another, it bursts because of the pressure ...

Best regards,

Frédéric Laurent For the Agora Chronicle

(*) Frédéric has worked in wealth management for over 20 years. He started out in an insurance company before taking a closer look at finance and the markets. He then worked for some time for Merrill Lynch, then went into exile in Luxembourg, where he learned to the smallest details of wealth and wealth management.


It ties in with what is said in the other article.

We are going towards a financial crisis that someone is going to have to pay for. Banks will find a trick to get away with it, but who's going to toast? always the same pigeons : Shock:
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by Christophe » 28/06/08, 10:27

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