debts? paying back!? joking?!

Peter Schiff about everything and the US debts in particular which are not expected to be paid back, ever! Even China knows!

So how strong will that bill be that the Senate now has to pass on the Yuan and it needing appreciated? It's old news, both, the video and the Yuan but China today is really shivering, hardly laughing like the audience in the above Peter Schiff video, about 40 minutes into the talk, when Peter makes jokes about good old Madoff and the Government's' Ponzi schemes versus what seems like naive China. Seems!

Go and talk to your bank and tell them "You must be joking! You - want your money back?! Kidding me??"

Carpe diem!

Ownership comes with Responsibiliy

guardian

Bail Out, but to completion!

More and more articles and reports are accumulating: unemployment bankruptcies and insolvencies on the rise; companies in reverse, or closing down, many laying people off: the common denominator; lack of liquidity in the markets.

The government claims, it bailed out the banks; to me it is obvious that this solution has only been half baked; if that. There is the ongoing discussion about the installation of one or more "Bad Banks" - after all the months of pouring public money into the banks, the same politicians tell us we will need "at least"

£606bn of new debt over four years but they still refuse to think the disaster to its end and go the whole hog.

Clearly, this is putting at risk what was invested so far! Tax money that was used to "bail out" the banks (not in full as we have learned), this same money in the hands of the polluters is now denied to play its role - and this is not to say that irresponsible lending has to re-start. No, it is responsible lending that is now needed to help the economy recover from this bank crunch; the crunched rather want it to be a global economic crisis in order to distract from their own failures. This must be stopped.

So, we must go the full way, now, bail them out to completion, now!

Install this "Bad Bank" and put things straight. Why not call it what it is though, the "Good Bank" as it is the bad ones that desperately need the good one.

Otherwise this investment into owning the banks will only become toxic, bad debts.

Carpe diem!

lateral thinking from the wall to the banks

Back in 1989: busy in my routine of business travel; Taiwan, Japan, the States and regular visits to GDR, (the German Democratic Republic). We talked and discussed as usual: anything with anybody, thoughts were free.

Too free, obviously, as not for a fraction of a millisecond anybody had fancied that just a moment later, within minutes one late autumn evening, the Berlin Wall would come down; climbed, jumped and walked to pieces where bullets had ruled seconds earlier and for more than 28 years. Not only the Wall fell but the entire Eastern Block fell to pieces. What had been an unchangeable fact, rock and concrete solid, a fixed pillar in anyone’s reflection suddenly became a dusty heap of rubbish and everything changed.

With the current economic crash on top of all the global problems, some addressed but very few actually solved, embedded in an already advanced climate change nothing will stay as it is and little will be of any permanence; all fixed ideas must be questioned and all options considered. GM, Lehman Brothers, RBS, SAAB to name but a few, before even finishing their last chapters are being run over by history. Last year you would have declared any guru as being nuts if he had forecast what has happened; week on week it will now be more and more challenging to be prepared for the week thereafter.

In retrospect – the easy way – lowering interest rates and pumping endless sums of printed and not-printed money into banks already gone bad, was wrong; nobody – some insiders excluded – would have believed let alone imagined how fast and widespread cancerous papers would cause such an excessive malignant growth.

Today the “bailed out” banks are all but doing their job; they are still over lent and spent and while they try to cover their tenuous positions prior to Joe Bloggs declaring them insolvent the assets and securities are thawing away much faster than the Arctic’s ice; a vicious circle, devil’s roundabout, which will accelerate out of control unless stopped by a big bang.

Tomorrow morning’s bang must see different banks, new money, set rules and installed control mechanisms. The old structures need to be sorted out, responsibilities called in, the mess cleaned up; but the cut is needed now, breaking the ropes of the sinking old banks in order to enable a reset and all of us banking on the economic leftovers.

Nationalisation is hard to imagine, but there is no time left for spinning discussions: lateral thinking and action, please!

Carpe diem!