Economic Apocalypse Update
The BBC has been staying on top of this and reports that European banks rescue plan agreed
European leaders meeting in Paris have agreed a plan to tackle the banking crisis, saying no big institution will be allowed to fail.
They pledged to guarantee loans between banks until the end of 2009, and said they would put money into them by buying preference shares.
…
Mr Sarkozy said leaders had agreed a framework in which individual countries would be able to inject capital into their own banks by means of preference shares.
He said governments in Germany, France and Italy among others would be presenting their individual plans on Monday, within the agreed framework.
“The crisis has over the past few days entered into a phase that makes it intolerable to opt for procrastination and a go-it-alone approach,” he said.
This is the modified Brown plan, modified by being called the Euro group plan, but who cares.
The Brown plan called the Brown plan is moving apace in the UK: UK banks ‘forced to seek £50bn’
Up to £50bn of taxpayers’ cash is to be injected into four of Britain’s biggest banks through the government’s rescue package, the BBC has learned.
Royal Bank of Scotland (RBS), HBOS, Lloyds TSB and Barclays is to sell off shares, the majority of which the government is expected to buy.
If the government ends up owning more than half of RBS and HBOS, it will be an effective nationalisation.
Robert Peston comments on the Humbling of our banks, but it’s their own fault for getting greedy.
The Asian markets are up on the European news, but Wall Street has no new moves to cheer about, so we’ll have to see what happens.
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…the interesting thing, since I don’t normally pay attention to such matters, is whether the US stock markets are even open tomorrow, since it’s (the observation of) Columbus Day. I get the day off and lots of governmental agencies at all levels are closed, but my second oldest has school, so who knows. This agreement raises a host of fascinating questions about how – or even whether – the US stock markets will react, especially if they are closed for the day and Asian and European markets have two full trading cycles to themselves…
That’s right, Jack, but the markets are open. The state offices are closed because it is a state holiday and there are parades in most New York cities with large Italian populations. I worked in law enforcement so it was another comp day added to my benefits bank if I worked it, and nothing if it fell on my normal days off.
Well… It seems the Dem’s have been listening to Rudd. LOL 😉 I just read this at C&L.
Build Our Way Out Of Depression, Dems Say
The difference being that we have a big surplus, and the USA has a BIG deficit. Still… if it’s serious, and if it’s done properly, and *IF* they stop the wars (And I don’t see that happening even if Obama wins a big majority), then it would help a lot. That’s a lot of *if’s*.
*shrug*
Just watched the news here. Our market jumped about 5.5% after Rudd announced his surplus spending rescue package. His Gov is going to bring forward $AU76bn infrastructure spending and continue for at least the next 2 years, increase benefits to pensioners and low income families, boost the big banks and guarantee deposits etc.
Rudd outlines $76bn infrastructure spending plans
Looks like we’ll get our desalination plant sooner, rather than later. That will be nice… since our reservoirs are at about 30% now. They say that the plant will take up about 30% of the State’s water needs. I’m not convinced it’s the way to go… but we are out of time. *shrug* “Needs must…”
However, I think that whilst spending *some* of the surplus is a good idea, I think they should lower the GST rate from 10% to 7.5% or 8% to ease the burden on small businesses and low income earners. I think Canada did that and it’s helped.
From risk to rock solid
Oh… And one other thing happened today, that I didn’t think I would see in my life! LOL Our ASIC (Australian Securities and Investments Commission) is suing those crooked incompetent SOB’s, KPMG! LOL About time! Howard let the crooked bastards run rampant here and screwed Aus out of hundreds of millions! Now, ASIC wants a few hundred million back for the investors they screwed with shonky auditing and accounting practices. 🙂 Maybe some justice in this God forsaken World after all! Now… if only Bushmoron/Darth Chaney would just get hit by a bus or something… 😉 LOL
Rudd’s not perfect… But I’m liking him more each week. 😉 😀
Oh, if you’re interested… Here’s the news report on the ASIC suit against KPMG. 🙂
ASIC sues accounting giant KPMG over Westpoint collapse
Just imagine if the Dem’s win and decide to enforce the rules in the USA? LMAO KPMG and a few others would be bankrupted over night! Won’t happen of course… still… 😉
… increase benefits to pensioners and low income families…
and roy blunt, head republican of something-or-other in congress here, has said that he’ll go along with an infrastructure bill if it ‘makes sense’ and he goes on to say that such a bill would have to carry a guarantee that it won’t bail out states that have spent too much on health care and other social services. compassionate conservatives, every single one of them [not].
Australia has been in pretty good shape all along, and yes, the GST and other consumption taxes always have a bigger impact on the poor than the rich, be they people or businesses. The best way of dealing with real surpluses is by reducing the tax that generates them, after establishing a recession fund and fully funding the emergency accounts, like unemployment and food programs. Tax cuts aimed at the poor and middle class are always more effective in dealing with recessions, because those are the people who spend the money and get things going.
It is definitely time to throw a few of the financial crooks in prison after you confiscate all their worldly goods. Make them aware that there is a price to be paid for lying – it’s the only way to stop it.
Anyone who doesn’t know that the US infrastructure is falling apart hasn’t driven on an Interstate recently. Reagan started the cuts in routine preventative maintenance to hide his real deficits and these are Federal projects, so the Federal government should be taking care of them. We have thousands of unemployed construction workers who would love to get back to work, so it can start up quickly, and it should include all of the deferred repairs needed in the National Parks.
Roy Blunt can kiss my grits. He is as responsible as anyone for this mess as he sat in Congress and helped to pass the laws that created it. He and the rest of his cronies are past their “use by” dates and should retire to obscurity before someone starts boiling the tar and gathering the feathers.
Well… It’s getting interesting! 🙂
Everyone is happy here now that the Rudd plan details have been unveiled. Pensioners and carers especially. They get a Christmas cash bonus ($1,400 for singles). The Market jumped up another 6%. Asian markets are climbing, Japan went up 14%!
The really interesting part is the Brown is holding the banking exec’s accountable, possibly for the first time in recent history. 🙂
Now, the World is waiting to see if the Bush Gov will do the right (even the sensible) thing, or not. 🙂 I feel that this will be the last chance for the USA to be allowed to be a major player again, and regain some credibility.
I guess we’ll see. 🙂
So far we’ve the Shrubbery trying to maim Berlusconi with a defective podium, so I doubt this will end well. The market started off up, but then they let him talk which usually results in a down market.
Actually punishing the people who created this mess would make for embarrassing times at the country club and on the golf course, so it is highly unlikely that it will happen. They had to be drug kicking and screaming into seeing the logic of the Brown plan, so I don’t expect reason to prevail, or justice.
Unemployment has been rising this year, but that is mainly due to US companies closing down here. Ford is the latest, announcing 1500 jobs being cut. But recently, small businesses have been closing also. So, Rudd is wooing Asian and EU companies to invest here. It seems our *infrastructure rebuilding* projects will go to Aus, Asian and EU companies. Our trade surplus has been increasing due mainly to increasing mineral/resource exports to Asia.
It will still be rocky here, and can get worse… but there is some hope now at least that it might not be too bad! People are still using the *R* word, but the *D* word is diminishing. 🙂
Thank the stars we kicked Howard out! We’d really be in the crap now if he were still PM! *PHEW*! LOL
One other thing happened this week that was very interesting for me, but seems unremarkable for the MSM here. 😉
When our SAS pulled out of Iraq, the commanders *requested* asylum here for the Iraqi’s that worked with them over the past few years, and it was granted. 🙂 Now, they have been offered citizenship for themselves and families, and the local RSL here (originally ‘Returned Soldiers League’, now ‘Returned Services League’) has awarded the Iraqi’s membership and I could see they were very moved and seemed very sincere in their thanks. Some of them were very skilled in various trades and academia. So they will make a good contribution I think. 🙂 If we had left them in Iraq, they would have been killed by now, and they know it. This could prove to be a good thing to have done sometime in the future. 🙂 The war there can’t last forever, will be handy to have some solid *friends* who know the place well. 😉
‘Hearts and Minds…’ Maybe Aus will get something out of this insane war after all… More than the USA will any way. LOL
Ford is coming unglued, as it didn’t plan for the high gas prices and is stuck with a lot of vehicles no one wants. It made more appropriate vehicles in places like Australia, but it needs to cut costs wherever it can.
I think everyone has been expecting a recession for some time except the pollyanas in charge of the US who have been in denial for a while. They have been waiting for the “free market fairie” to wave a wand and make things better, but it didn’t happen.
Australia has exports to help out for a while, but soon the customers will run out of money and cut back.
Pulling out locals is the only way to do it. If you don’t, they are dead. The main thing is that if you don’t do it, you won’t get help the next time. That’s a major problem for US forces in Afghanistan, we didn’t keep our word or pay our debts after the Soviets got thrown out, so no one wants to work with us now. You are only as trustworthy as the last deal, and we screwed that one up royally.