Global Economy Bursting?

[Randolph Kinney]

Debt threatens economic recovery, big banks say

http://www.sfgate.com/business/arti...tek Newsletter&utm_campaign=Biztek Newsletter

Governments, banks and households struggling with too much debt are dragging down the world's economy and more needs to be done to make the banking system safer, a global organization of central banks warned Sunday.

The Bank for International Settlements said in its annual report that the world economy remains out of balance, with advanced economies struggling with debt and emerging economies growing strongly but facing risks of their own version of boom and bust.

"The world is now five years on from the outbreak of the financial crisis, yet the global economy is still unbalanced and seemingly becoming more so as interacting weaknesses continue to amplify each other," the BIS said in its 82nd annual report.

 

[Big ole Boy]

A colon metaphor

Debt threatens economic recovery, big banks say

http://www.sfgate.com/business/arti...tek Newsletter&utm_campaign=Biztek Newsletter

.

"The world is now five years on from the outbreak of the financial crisis, yet the global economy is still unbalanced and seemingly becoming more so as interacting weaknesses continue to amplify each other," the BIS said in its 82nd annual report.

The world economy has had numerous financial gastric bypasses - yet it continues to devour more and more debt and expelling out hypnotic clutter.

 

[Riick]

The world economy has had numerous financial gastric bypasses - yet it continues to devour more and more debt and expelling out hypnotic clutter.

.... While, to continue with the biological analogies, what it needed was
a large dose of castor oil, or other laxative, to get rid of the "excesses",
plus
a finger or two down the throat for very recent "excessive debt".
But noooooo, we can't do that

 

[Randolph Kinney]

Massive Cyber Attack In Progress

http://www.shtfplan.com/headline-ne...d-from-financial-institutions-so-far_06262012

Leading cyber security firm McAfee has issued a startling breaking news report that indicates the U.S., European and Latin American financial systems are under a massive financial attacks that have digitally siphoned some $2.5 billion from thousands of accounts from various financial institutions.

 

[Randolph Kinney]

Mediation Fails, Pushing Stockton Toward Bankruptcy

http://www.nytimes.com/2012/06/28/us/stockton-california-heads-for-bankruptcy-court.html

On Tuesday night, City Council members approved a new budget that will guide city operations during bankruptcy and amend a $26 million budget shortfall. With that vote out of the way, city officials could file for Chapter 9 bankruptcy as early as Wednesday, which would make Stockton the country’s largest city to go bankrupt.

The new budget will suspend debt payments, cut employee pay and reduce retiree benefits, allowing this city of about 292,000 residents to continue providing essential services through the bankruptcy process.

 

[Randolph Kinney]

Stockton becomes nation's biggest city to declare bankruptcy

http://www.contracostatimes.com/cal...comes-nations-biggest-city-declare-bankruptcy

STOCKTON - In opting to become the nation's largest city to seek federal bankruptcy protection, this river port of 290,000 took a rare financial step of last resort after struggling with the economic downturn, soaring pension costs and contractual obligations.

Thirteen cities, counties and other government entities filed for bankruptcy protection last year - the highest annual level in nearly two decades. Stockton was the seventh U.S. municipality to file this year and the first California city since Vallejo, which sought protection in 2008, according to James Spiotto, a Chicago bankruptcy attorney who tracks municipal bankruptcies.

The budget approved Tuesday night would suspend payments for debts and legal claims; reduce payments for retiree medical benefits; further cut some pay and benefits; and increase revenue through code enforcement and parking citations.

Other residents complained about plummeting property values, and recurring break-ins and robberies.

Under bankruptcy protection, officials would retain power over day-to-day city operations and staffing, but a judge would take over all decisions concerning the city's debts, said Robert Benedetti, professor of political science at the University of the Pacific in Stockton.

The judge would decide which creditors should be paid, how much and in what order. He would make allowances for expenditures needed by the city to function, and it would be up to city officials to decide how to spend that money.

 

[Restrain]

The city saw the bubble push up housing values 4X from 2000-2007, and assumed that the party will never end. Large parking garages, increasing taxes, new city hall, new sports venue to be paid for by the taxpayer. Then the party ended. Almost 20% "unemployment", which we all know would be closer to 28-30% when U6 is calculated. Businesses are closing, moving out. Figure a decade before any recovery.

 

[Restrain]

Financial fraud again: Barclays Bank has agreed to a $453M fine payed to US and UK authorities over LIBOR rate fraud. Barclays, in conjunction with big US banks, artificially pushed the US bank LIBOR rate down to protect the US banks and hide their bad debt risk. Watch for this to hit the US banks next week.

 

[Terrel L. Shields]

it would be up to city officials to decide how to spend that money

Like anything is going to change significantly?

 

[Couch Potato]

Massive Cyber Attack In Progress

http://www.shtfplan.com/headline-ne...d-from-financial-institutions-so-far_06262012

Leading cyber security firm McAfee has issued a startling breaking news report that indicates the U.S., European and Latin American financial systems are under a massive financial attacks that have digitally siphoned some $2.5 billion from thousands of accounts from various financial institutions.

I saw that movie; Catherine Zeta-Jones and Sean Connery are always enjoyable.