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The Europeanisation of the Credit Crisis

I have been a bit on edge of late because of the credit crisis that is making headlines. Recently, a lot of people have been duped into believing that the economic crisis we are experiencing is not critical and have their eyes focused elsewhere. However, this event is potentially the most critical event in world history since World War II. […]

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The Germans guarantee all savings deposits

Facing a potential breakdown in its banking system, the German government has decided to offer a blanket guarantee to private savings deposits (see comments below from German blogger egghat about this distinction), much as Ireland and Greece have done. As much as I praise this move on the part of the Germans to restore confidence, it still leaves Hypo Real […]

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The SNL version of the Palin-Biden debate

Very funny!

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UK: House prices are going to rise substantially

If you want a good laugh, take a look at what Graham Norwood reports in today’s Guardian. House prices in Britain are going to rise — a lot! Apparently, he forgot that house prices are falling at double digit rates and we are in the worst banking crisis since the Great Depression. The last tme I checked, housing busts took […]

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Did JP Morgan cause Lehman’s bankruptcy?

According to the Times of London, that’s what Lehman’s creditors seem to suggest in Lehman’s bankruptcy filings. Apparently, JP Morgan cut Lehman off the night before it filed for bankruptcy and creditors are blaming this action for Lehman Brothers failure. RUUUBBISH! I don’t buy it one bit — Lehman was bankrupt all on its own. But, as I have often […]

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Brian Williams: “I’m A Maverick, And I May Not Answer The Questions Tonight”

The NBC News anchor apparently has a sense of humor. I found this video on Brian Williams mimicking Sarah Palin via the Huffington Post. Maybe Brian was miffed because Palin decided to talk to Katie Couric and Charlie Gibson but left him twiddling his thumbs. Regardless of the reason, it’s pretty funny. The clip is just over 10 minutes long.

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US: Democrats looking at a filibuster proof Senate majority

Politico is reporting that the Democrats are on track to potentially reach a super-majority of sixty seats in the U.S. Senate. Sixty is a very important number in the Senate because it neuters any attempt by the opposing party to block legislation by eliminating the opportunity to filibuster. If Barack Obama is elected President, such a super-majority in both houses […]

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Europe is in for a rude awakening

The Europeans have no idea what is about to hit them. Their banking system is collapsing and European politicians are fighting amongst themselves. At French President Nicolas Sarkozy’s crisis summit, the politicians were unable to craft a comprehensive or wide-reaching response to deal with the banking crisis. Meanwhile, the carnage in European banking is increasing. Within the last week alone, […]

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Germany: banking system collapse possible due to Hypo Real Estate

A week into the European leg of the meltdown of the global financial system, Germany has hit major turbulence. Hypo Real Estate, a member of the DAX-30, Germany’s equivalent of the Dow Jones Industrial Average looks to be on the verge of failing. According to the German Magazine Der Spiegel, the planned bailout of the company is unraveling and failure […]

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Text of Schwarzenegger letter to Paulson

Yesterday, California Governor Arnold Schwarzenegger wrote U.S. Treasury Secretary Hank Paulson to warn him that California was suffering a liquidity problem and needed federal assistance in order to avoid insolvency.

Below is the text of that letter.

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Is the State of California bankrupt?

It sure seems like California is insolvent. Just today we heard that Arnold Schwarzenegger contacted Hank Paulson to let him know that the State is having liquidity problems (see pdf) and needs help. California ranks as the world’s 9th largest economy with a population of over 30 million people, so this is quite worrying.

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Congress passes the bailout bill

The deed is done. Despite huge voter disquiet about the terms of the bailout package, Congress has passed the bill and it awaits the U.S. President’s signature. The house vote was 263 to 171, with a huge number of Congress members moving to a ‘yes’ vote this go ’round. This bill is better than nothing. However, it is disappointing that […]

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