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  • Australia government mortgage plan stirs doubts
    experts say the government is likely to focus its investments on home debt originated by non banks Non banks in Australia have suffered greatly since the US subprime mortgage crisis blew up because they are exclusively reliant on the securitisation market to fund their operations unlike banks which can use their balance sheet or deposit base Issuance of Australian residential mortgage backed securities RMBS slumped in the first half of the year to just under A 2 billion Australian dollars 1 7 billion from A 47 billion a year earlier A sharp increase in funding costs makes it nearly impossible for non banks to access vital funding so they can write loans As a result their home lending market share dropped to 4 percent from 17 percent in just 18 months according to East Partners The government s plan is to buy RMBS to stimulate the market and allow non banks to compete again Experts however seriously doubt it would ever spend enough to influence the funding costs of a market that has A 166 billion in outstanding mortgage debt It s a drop in a bucket Two or three dozen lenders are going to bid for a piece of this A 4 billion and the real impact will be negligeable said East Partners Dowling A a much larger injection was needed to change the economics and get non banks to lend again The Treasurer would have to look at the A 10 billion mark to open those competitive channels again Any less would not make much difference he said Even that is not enough for another expert who said A 50 billion might make a difference and also questioned the government s action If the government was prepared to buy A 50 billion it would have a pricing impact

    Original URL path: http://www.911omissionreport.com/australia_mortgage_plan.html (2016-02-14)
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  • Europe rescues more banks as U.S. rejects bailout
    economic slowdown and the Japanese yen hit a 4 month high Wall Street suffered its worst fall since 1987 on Monday but stock futures indicated a higher opening on Tuesday With Tuesday s end of the financial quarter Christian Noyer a European Central Bank governing council member sought to reassure investors There is no reason to be frightened and to give in to panic Noyer said on France s RTL radio I don t say there won t be things that will appear in the accounts that are published in the next weeks or months but there is no drama in front of us A week that started badly with the rescue of three banks in Europe and the distressed sale of big U S lender Wachovia to Citigroup grew worse after the U S Congress was unable to agree on a rescue package Treasury Secretary Henry Paulson said he would continue to work with Congress to formulate a bill that could pass after lawmakers rejected the plan he put together with Federal Reserve Chairman Ben Bernanke The Senate returns on Wednesday and the House on Thursday after a break for the Jewish New Year holiday of Rosh Hashanah No laws can be passed in their absence but their staffs could work on a revised plan U S presidential candidates Barack Obama and John McCain had both offered qualified support for the bailout which now dominates the election just over a month away Obama a Democrat said he believed lawmakers would regroup to pass a financial rescue plan I m confident we re going to get there he said as he campaigned in Colorado It s going to be a little rocky Republican House members voted against the rescue package by a more than 2 to 1 margin A majority

    Original URL path: http://www.911omissionreport.com/europe_rescues_banks.html (2016-02-14)
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  • Japan announces stimulus package
    currency appreciation Also who took office last month said the measures would include tax breaks on mortgages a bank rescue scheme to allow more than 2 trillion yen in public fund injections relief for small firms suffering from a credit crunch and 2 trillion yes in benefits for private households The fresh package to be financed by tapping special government reserves come on top of an 11 7 trillion yen set of measures announced in August before the current financial crisis exploded following the collapse of Lehman Brothers in mid September On Friday Japan s central bank will also consider whether it should join its peers across the globe and cut its key rate from an already low 0 5 percent The Fed on Wednesday delivered a widely expected cut in its key rate to 1 percent and left open the possibility of going still lower warning downside risks to growth remain The Hong Kong monetary authority on Thursday eased its base rate by the same amount to 1 5 percent and Taiwan cut its key rate by a quarter of a percent to 3 percent its third cut in about a month The Chinese central bank had cut lending and deposit rates by 0 27 percentage point on Wednesday the third cut in six weeks In Japan the Nikkei finished higher as investors cheered the fact that the yen whose recent strength has weighed on Japanese exporters earnings has eased off highs in the past few sessions Shares in Singapore Taiwan and Thailand all rose more than 6 percent Meanwhile the stream of results and data is continuing to paint a bleak picture about the state of the real economy Mitsubishi Motors Mazda and Nintendo on Thursday joined the swelling ranks of corporate giants that have slashed their full

    Original URL path: http://www.911omissionreport.com/japan_stimulus_package.html (2016-02-14)
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  • Federal obligations exceed world GDP
    Government Statistics told WND The Congressional Budget Office estimated the fiscal year 2009 budget deficit as being 1 2 trillion on a cash basis and that was before taking into consideration the full costs of the war in Iraq and Afghanistan before the cost of the Obama nearly 800 billion economic stimulus plan or the cost of the second 350 billion in TARP funds as well as all current bailouts being contemplated by the U S Treasury and Federal Reserve he said The federal government s deficit is hemorrhaging at a pace which threatens the viability of the financial system Williams added The popularly reported 2009 deficit will clearly exceed 2 trillion on a cash basis and that full amount has to be funded by Treasury borrowing It s not likely this will happen without the Federal Reserve acting as lender of last resort for the Treasury by buying Treasury debt and monetizing the debt he said Monetizing the debt is a term used to signify that the Federal Reserve will be required simply to print cash to meet the Treasury debt obligations acting in this capacity only because the Treasury cannot sell the huge of amount debt elsewhere The Treasury has been largely dependent upon foreign buyers principally China and Japan and other major holders of U S dollar foreign exchange reserves including OPEC buyers purchasing U S debt through London The appetite of foreign buyers to purchase continued trillions of U S debt has become more questionable as the world has witnessed the rapid deterioration of the U S fiscal condition in the current financial crisis Williams noted Truthfully Williams pointed out there is no Social Security lock box There are no funds held in reserve today for Social Security and Medicare obligations that are earned each year

    Original URL path: http://www.911omissionreport.com/65trillion.html (2016-02-14)
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  • "Enron Accounting" Has Bankrupted America: U.S. Deficit Really $202 Trillion, Kotlikoff Says
    deficit grows so does the national debt which is currently more than 13 3 trillion according to official figures But the situation is actually much much worse according to Boston University economics professor Laurence Kotlikoff Forget the official debt he tells Aaron in this clip The real deficit including non budgetary items like unfunded liabilities of Medicare Medicaid Social Security and the defense budget is actually 202 trillion the professor and author calculates or 15 times the official numbers Congress has engaged in Enron accounting says Kotlikoff who recently penned an op ed for Bloomberg entitled The U S Is Bankrupt and We Don t Even Know It Yet the debt market continues to have an insatiable appetite for U S Treasuries heading into Monday s session the yield on the 30 year Treasury bond which moves in opposition to its price was at its lowest level since April 2009 Kotlikoff says that s because the market is focused on the mole hill of official debt In time the U S will have a major inflation problem to rival that of Germany s post World War I Weimar Republic he predicts We have to think about the fact that unless

    Original URL path: http://www.911omissionreport.com/202_trillion.html (2016-02-14)
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  • Bush: $700bn bail-out will stop crisis spreading
    Senate will get a vote later in the week Mr Bush said it was a bold Bill that will help keep the crisis in our financial system from spreading throughout our economy He added I m confident that this rescue plan along with other measures taken by the Treasury Department and the Federal Reserve will begin to restore strength and stability to America s financial system and overall economy The President said he understood concerns about the large amount of money involved but added that it was necessary to have an impact In fact we expect that over time much if not all of the tax dollars we invest will be paid back he said Stock markets in Asia gave a downbeat reaction to the news that Washington had agreed the outline of the bail out In Hong Kong the Hang Seng index fell 669 13 points to 18 012 96 while Tokyo s Nikkei closed 149 55 down at 11 743 61 In Singapore shares fell 32 45 to 2 379 01 Asian investors said they were still deeply worried about the lack of detail in the rescue plan Agreement on the 110 page Bill to provide authority for

    Original URL path: http://www.911omissionreport.com/bail-out_will_stop.html (2016-02-14)
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  • Financial crisis: President Bush claims bailout could end up costing US taxpayer nothing
    to assuage the concerns of Main Street Mr Bush said the intention of the EESA was to restart the flow of credit so American families can meet their daily needs While the plan has the backing of senior Republicans and Democrats including the Presidential candidates doubts remain over whether it will be passed by Congress Speaking to CNBC House Majority Leader Steny Hoyer said We are hopeful but we re not sure We think we will have the votes but it is a tough vote The plan will see the US Government offer to buy bad assets from banks for a two year period but the Treasury has been forced to offer a number of concessions to reduce concerns in Congress and among the American public Banks will be forced to issue stock warrants to the Government if they choose to use the facility while the Treasury has also promised strong supervision of the EESA and protection for US homeowners In what could be seen as a crucial concession the bill calls for the US Treasury to do everything in its power to prevent foreclosures of homes in a move that would allow it to change the terms of individual mortgages to protect homeowners The EESA will make 250bn available immediately to banks with a further 100bn on hand if the President calls for it The availability of the second 350bn would be subject to congressional review Mr Bush admitted that many Americans are worried about the cost of the plan but said the ultimate cost could be far less than 700bn amid hopes that the taxpayer would profit from asset sales in the future Much if not all of the tax dollars we invest will be paid back Mr Bush said A vote for the EESA is to prevent

    Original URL path: http://www.911omissionreport.com/bailout_cost_nothing.html (2016-02-14)
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  • Ernst & Young is sued over Lehman Bros. collapse
    state court focuses on a set of short term transactions begun in 2001 that allowed Lehman to look healthier and less risky when it reported quarterly financial data The suit accuses Ernst Young of approving the so called Repo 105 transactions and signing off on financial reports that did not disclose them Ernst Young sat by silently while Lehman deceived the public the complaint says The New York accounting firm issued a statement saying it would fight the suit Lehman s audited financial statements clearly portrayed Lehman as a highly leveraged entity operating in a risky and volatile industry the accounting firm said Lehman s bankruptcy was not caused by any accounting issues The suit recalls accusations that followed the collapse of energy giant Enron in 2001 when prosecutors blamed accounting firm Arthur Andersen for many of Enron s problems A criminal indictment of Andersen forced it out of business reducing the five big U S accounting firms to four including Ernst Young The case filed Tuesday however is civil not criminal and will probably end with a monetary settlement The complaint asks the court to order Ernst Young to pay New York the more than 150 million in fees

    Original URL path: http://www.911omissionreport.com/sued_over_lehman.html (2016-02-14)
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