Mike Hayward’s Banking Crisis Digest of March 9 2011

Mar 12, 2011 Comments Off on Mike Hayward’s Banking Crisis Digest of March 9 2011 by

MIKE HAYWOOD’S BANKING CRISIS DIGEST

An independent weekly compilation of current internet articles and blogs relating to the global banking crisis. The most important titles are marked with a X

Issue 00 March 1, 2011

Global Banking crisis, economy and systemic risk

XX Debt, Inflation and Global Economy Systemic Risks, The ZIRP Trap     http://www.marketoracle.co.uk/Article26773.html

XX Why you cannot regulate systemic financial risk     http://www.stockopedia.co.uk/content/why-you-cannot-regulate-systemic-financial-risk-54717/

X A Quick Look at U.S. Government Debt    http://www.independent.org/blog/index.php?p=9512

XX Cognitive Dissonance of It All http://www.johnmauldin.com/images/uploads/pdf/mwo030711.pdf

“No Way Out” of Debt Trap, Gross Says: U.S. Living Standards Doomed to Fall    http://finance.yahoo.com/tech-ticker/“no-way-out”-of-debt-trap-gross-says-u.s.-living-standards-doomed-to-fall-536001.html

Bank of Spain Says 12 Lenders Need $21 Billion More to Meet Capital Rules     http://www.bloomberg.com/news/2011-03-10/bank-of-spain-says-12-lenders-need-21-billion-more-to-meet-capital-rules.html

China’s Coming Banking Crisis?    http://the-diplomat.com/china-power/2011/03/11/chinas-coming-banking-crisis/

Banks ‘led by herd instinct in crisis’    http://www.herald.ie/national-news/banks-led-by-herd-instinct-in-crisis-2575900.html

Europe has a banking crisis, not a wages crisis    http://euobserver.com/7/31969

Europe May Face More Ratings Cuts, Greek Default, S&P Says    http://www.bloomberg.com/news/2011-03-08/europe-may-face-more-ratings-cuts-greek-default-standard-poor-s-says.html

Adding Up China’s Debt Load    http://online.wsj.com/article/SB10001424052748703883504576186252054344030.html?mod=googlenews_wsj

IMF study critical of banking reforms    http://www.ft.com/cms/s/0/3a971210-4a7b-11e0-82ab-00144feab49a.html#axzz1GBhONjpz

Irish Banks Seek to Delay ‘Evil Day’ of Reckoning as Mortgage Losses Mount      http://noir.bloomberg.com/apps/news?pid=20601087&sid=aCEEEsgyI7iE&pos=4

Bank of England governor Mervyn King ‘out of touch’ , says City    http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8363727/Bank-of-England-governor-Mervyn-King-out-of-touch-says-City.html

China Faces 60% Risk of Bank Crisis by 2013, Fitch Gauge Shows    http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aU6A8BxqDFBw

THE BANKS v THE PEOPLE: DECISION TIME FOR THE WEST    http://hat4uk.wordpress.com/2011/02/17/the-banks-v-the-people-decision-time-for-the-west/

A global systemic collapse would in relative terms benefit the US    http://www.bi-me.com/main.php?id=51431&t=1&cg=4

It’s Time to Face the Fiscal Illusion    http://www.nytimes.com/2011/03/06/business/06view.html?_r=1&smid=tw-nytimesbusiness&seid=auto

European bank tests to be softened      http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8370258/Europe-weakens-bank-stress-tests.html

Fixed income investors wake up to political risk   http://www.ft.com/cms/s/0/b7e74758-46ac-11e0-967a-00144feab49a.html?ftcamp=rss#axzz1FovZ5n8l

RBS crisis: FSA misjudged how much help banks needed     http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8365178/RBS-crisis-FSA-misjudged-how-much-help-banks-needed.html

Bankers unite in fury against Mervyn King    http://www.introducertoday.co.uk/News/Story/?storyid=4039&title=Bankers_unite_in_fury_against_Mervyn_King&type=news_features

Interest rates could rise sooner than you think    http://www.moneyweek.com/news-and-charts/economics/uk/uk-economy-mervyn-king-interest-rate-rises-10901#comments

Regulating financial risks     http://gregpytel.blogspot.com/2011/03/you-cannot-regulate-risk-self.html

The Canary Is Dying and So Is Our Future    http://www.economicnoise.com/2011/03/09/the-canary-is-dying-and-so-is-our-future/

 

There are hundreds of articles each week about the continuing US Property slump. Here’s a sample of them

 

XX Councilman: Why I stopped paying my mortgage     http://huntingtonhomes.ocregister.com/2011/03/07/councilman-why-i-stopped-paying-my-mortgage/130687/

XX The Rich Get 100 Times More Mortgage Subsidy Than the Poor      http://taxprof.typepad.com/taxprof_blog/2011/03/sullivan-.html

XX Housing will go to zero?     http://patrick.net/forum/?p=640125#header

Between a rock and a living space        http://www.economist.com/node/18250431?source=patrick.net#ec-article-body

When the roof fell in       http://www.economist.com/node/18250439?source=patrick.net#ec-article-body

Underwater mortgages rise as house prices fall    http://finance.yahoo.com/news/Underwater-mortgages-rise-as-apf-1329138840.html

BofA Segregates Almost Half its Mortgages Into Bad Bank    http://www.bloomberg.com/news/2011-03-08/bofa-segregates-almost-half-its-mortgages-into-bad-bank-under-laughlin.html

New CoreLogic® Data Shows 23 Percent of Borrowers Underwater with $750 Billion Dollars of Negative Equity    http://www.sacbee.com/2011/03/08/3458329/new-corelogic-data-shows-23-percent.html#

Five Years of Housing Supply and 5 or 6 Trillion Dollars of Additional Pain     http://globaleconomicanalysis.blogspot.com/2011/03/five-years-of-housing-supply-and-5-or-6.html

 

US Foreclosure and Mortgage Fraud

Behind the foreclosure crisis, big banks’ reign of error    http://www.washingtonpost.com/wp-dyn/content/article/2011/03/04/AR2011030404615.html

Foreclosure Protesters Descend On Washington    http://www.huffingtonpost.com/2011/03/07/foreclosure-protesters-de_n_832420.html

Mortgage Fraud Led By California, Florida, Arizona and Nevada     http://www.housingpredictor.com/2011/mortgage-fraud-sunbelt-states.html

Foreclosure Fraud in Maryland: Banks’ Lawyers Accused of Forging 1,000+ Deeds    http://www.dailyfinance.com/story/real-estate/foreclosure-fraud-maryland-banks-lawyers-forged-deeds-signatures/19873599/

 

 

 

UK Property Market

XX Property is widely seen as a safe asset. It is arguably the most dangerous of all     http://www.economist.com/node/18250385

XX Warning of 30 per cent house price fall     http://www.cih.org/news/view.php?id=1390

XX Financial crises and property busts go together. The link can be weakened    http://www.economist.com/node/18281764

English house prices will fall due to economy     http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8361417/House-prices-will-fall-due-to-economy-says-Britains-biggest-lender.html

Interest rate rise would hit 90% of homebuyers, says analyst      http://www.guardian.co.uk/business/2011/mar/09/mpc-decided-on-interest-rate-rise

Welsh housing market activity falls ‘considerably’      http://www.bbc.co.uk/news/uk-wales-12673589

Why mortgage lending slumped by a quarter and house prices may fall by a fifth     http://blogs.telegraph.co.uk/finance/ianmcowie/100009765/why-mortgage-lending-slumped-by-a-quarter-and-house-prices-may-fall-by-a-fifth/

 

 

Global Pension “time bomb” and aging population

X Gloomy Malthus provides food for thought as world’s appetite builds    http://www.telegraph.co.uk/finance/comment/liamhalligan/8363500/Gloomy-Malthus-provides-food-for-thought-as-worlds-appetite-builds.html

X London Councils’ pension black hole rockets to £14.6 billion      http://www.thisislondon.co.uk/standard/article-23930370-councils-pension-black-hole-rockets-to-pound-146-billion.do

Pension reform: to cut or not to cut?    http://blogs.ft.com/beyond-brics/2011/03/09/pension-reform-to-cut-or-not-to-cut/

What Happens When City Retirees Outnumber City Employees?    http://foxandhoundsdaily.com/blog/gary-toebben/8723-what-happens-when-city-retirees-outnumber-city-employees

Unions Oppose Pension Changes in California Talks   http://online.wsj.com/article/SB10001424052748703662804576189200016227420.html

UK pension reform could spark wave of strikes    http://www.reuters.com/article/2011/03/09/britain-pensions-idUSLDE7280AZ20110309

Public service pension overhaul urged by Hutton report    http://www.bbc.co.uk/news/business-12687489

Corporate pensions deficit reaches £1,383bn    http://www.ftadviser.com/FinancialAdviser/Pensions/News/article/20110310/e9f34bd8-4595-11e0-9885-00144f2af8e8/Corporate-pensions-deficit-reaches-1383bn-Xafinity.jsp

Unions warn of strikes over pension reforms   http://www.telegraph.co.uk/news/uknews/8364771/Unions-warn-of-strikes-over-pension-reforms.html

Overhaul of ‘gold-plated’ pensions could lead to calls for general strike   http://www.guardian.co.uk/politics/2011/mar/06/overhaul-pensions-lead-general-strike

State pension to be simplified, says Iain Duncan Smith    http://www.bbc.co.uk/news/uk-politics-12674194

Pensioners will die in debt    http://www.guardian.co.uk/money/2011/mar/09/pensioners-will-die-in-debt

 

The affect of Austerity measures

National People’s Action Takes over Bank of America Branch in DC   http://news.firedoglake.com/2011/03/07/national-peoples-action-takes-over-bofa-branch-in-dc/

Struggle to pay bills is about to get much worse      http://www.independent.ie/business/personal-finance/struggle-to-pay-bills-is-about-to-get-much-worse-2567723.html

Rising prices stoke fuel thefts in B.C.     http://www.theglobeandmail.com/news/national/british-columbia/rising-prices-stoke-fuel-thefts-in-bc/article1933828/

Warning Of ‘Food Price Riots In The UK’     http://uk.finance.yahoo.com/news/Warning-Of-Food-Price-Riots-skynews-2424687063.html?x=0

 

 

Deflation or inflation?

Is inflation wolf at the door?    http://www.latimes.com/business/la-fi-petruno-20110305,0,4894306.column

Interest rates could rise sooner than you think    http://www.moneyweek.com/news-and-charts/economics/uk/uk-economy-mervyn-king-interest-rate-rises-10901#comments

Deflation defeated?    http://www.marketwatch.com/story/deflation-worries-receding-fast-2011-03-08?reflink=MW_news_stmp

Hyperinflationary Deluge Imminent    http://www.zerohedge.com/article/egon-von-greyerz-hyperinflationary-deluge-imminent-or-why-bernankes-motto-après-nous-le-délu

 

 

US recessionary trends

X Police Force Nearly Halved, Camden Feels Impact   http://www.nytimes.com/2011/03/07/nyregion/07camden.html

 

 

 

 

 

US Unemployment

 

Are graduates really immune from U.S. unemployment misery?    http://blogs.reuters.com/great-debate-uk/2011/03/07/are-graduates-really-immune-from-u-s-unemployment-misery/

A Double Dose of Deceptive Unemployment Statistics     http://news.coinupdate.com/a-double-dose-of-deceptive-unemployment-statistics-0711/

His Recession, Becoming Hers    http://economix.blogs.nytimes.com/2011/03/07/his-recession-becoming-hers/

 

Eureka Articles that may inspire you to question the status quo

X

 

And for some light relief      Comedy Video Sketch….Banking and inflation

XXXXX

Building Resilience to coming crises

The Peak Affordability Lifestyle    http://www.chrismartenson.com/blog/managing-pain-without-meds/53866

 

 

 

Alternative Currencies, changing the Banking System

X Spain town reintroduces peseta to boost economy    http://www.bbc.co.uk/news/world-europe-12657225

XX Fiat Currencies: Designed to Fail http://wealthcycles.com/video/fiat-designed-fail

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About the author

Caroline Whyte has been involved with Feasta since 2002. She studied ecological economics at Mälardalen University in Sweden, writing a masters thesis on the relationship between central banking and sustainability. She contributed to Feasta's books Fleeing Vesuvius and Sharing for Survival. Along with four other Feasta climate group members she helped to launch the CapGlobalCarbon initative at the COP-21 summit in Paris in December 2015. In February 2017 she participated in the World Basic Income conference in Manchester, discussing the potential for climate action to contribute to reducing poverty and inequality worldwide. She lives in central France, from where she edits the Feasta website.

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