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Global Economy Bursting?

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And why do we not think such will simply play out there, then move to these shores? I think we are years from the nadir of this mess and decades from a true recovery. I expect a Japan like existence with Zombie banks freezing out the small banks, and no one able to either borrow money or get a decent return on their CDs.
 
Banks Increase Holdings in Derivatives

http://dealbook.nytimes.com/2011/09/23/banks-increase-holdings-in-derivatives/

Even as federal regulators ratchet up scrutiny of the derivatives market, Wall Street is diving deeper into the $600 trillion industry, a new government report found.

The banking industry in the second quarter raised its stake in derivatives more than 11 percent from the same period a year earlier.

Banks now hold nearly $250 trillion of the contracts, primarily futures and swaps, which derive their value from an underlying asset like an interest rate or a bundle of mortgages.

Credit default swaps make up 97 percent of total credit derivatives at banks.

So? Which end are the banks holding on the swap? Say Greece defaults on its sovereign debt, do the banks "win", they get paid? Or do the banks lose, they must pay the holder of defaulted debt?
 
Randolph Kinney said:
Banks Increase Holdings in Derivatives

http://dealbook.nytimes.com/2011/09/23/banks-increase-holdings-in-derivatives/

Even as federal regulators ratchet up scrutiny of the derivatives market, Wall Street is diving deeper into the $600 trillion industry, a new government report found.

The banking industry in the second quarter raised its stake in derivatives more than 11 percent from the same period a year earlier.

Banks now hold nearly $250 trillion of the contracts, primarily futures and swaps, which derive their value from an underlying asset like an interest rate or a bundle of mortgages.

Credit default swaps make up 97 percent of total credit derivatives at banks.

So? Which end are the banks holding on the swap? Say Greece defaults on its sovereign debt, do the banks "win", they get paid? Or do the banks lose, they must pay the holder of defaulted debt?
Click to expand...

depends on which shell u pick up!
 
So? Which end are the banks holding on the swap? Say Greece defaults on its sovereign debt, do the banks "win", they get paid? Or do the banks lose, they must pay the holder of defaulted debt?
Click to expand...
What I've read is that the banks here had insured the European banks against Greek default, as well as other PIIGS.
So if Greece defaults, they are on the hook - big time.

Did I say if Greece defaults? When Greece defaults.

Hopefully they're busy "coppering" the other side of their insurance bets,
so if, as, and when, the fan distributes its load of ***** , they're closer to even.

.
 
More Gloom Lies Ahead for Cities, Report Says

http://www.nytimes.com/2011/09/27/u...t-says.html?_r=1&nl=todaysheadlines&emc=tha23

Nearly a third of the nation’s cities are laying off workers this year. More than half have canceled or delayed infrastructure projects. And two out of five have raised their fees.

The catalog of service cuts and fee increases comes as America’s cities are bracing for what they expect will be their fifth straight year of declining revenues, according to a survey of city finance officers to be released on Tuesday by the National League of Cities.

Mayors have lined up at the money feeding trough in Washington, begging for support of the Obama "jobs" plan that includes billions for cities. Nothing solves a problem like more money. Less money is creating the problem.
 
Reading, Pa., Knew It Was Poor. Now It Knows Just How Poor.

http://www.nytimes.com/2011/09/27/u...ensus-shows.html?nl=todaysheadlines&emc=tha23

Reading, a struggling city of 88,000, has the country's largest share of residents living in poverty, barely edging out Flint, Mich.

The city had been limping for most of the past decade, since the plants that sustained it — including Lucent Technologies and the Dana Corporation, a car parts manufacturer — withered. But the past few years delivered more closings and layoffs, sending the city’s poverty rate up to 41.3 percent.

This city has had a large influx of Hispanics over the past decade. They moved from New York and other large cities, drawn by cheaper rent and the promise of a better life. Young men have been particularly hard hit. Because they are having trouble competing for jobs, they are dropping out of the labor force, leaving women to support the children.
 
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Half of California voters report decline in personal economic situation

http://www.sacbee.com/2011/09/27/3940868/half-of-california-voters-report.html

One in two California voters say their financial well-being is worse off than a year ago, according to a new Field Poll released Tuesday. It marks the fourth straight year in which at least half of Californians reported a decline in their personal situation, the first time that has happened since Field began asking the question 50 years ago.

Field also found that 91 percent of voters say that California's economy is in bad shape. Forty-two percent believe that things will stay the same over the next year, while 30 percent say it will worsen and 26 percent think it will improve.

State revenue has already fallen short of expectations in June, July and August, according to the Department of Finance.

The question of "raise my taxes" was not asked on the polling questions.
 
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