And Wow: Fed's Hoenig Says United States Has "Deeply Undermined Free-Market Capitalism"
Submitted by Tyler Durden on 02/23/2011 12:33 -0500
The Fed mutiny has arrived:
•HOENIG SAYS U.S. HAS `DEEPLY' UNDERMINED FREE-MARKET CAPITALISM
•HOENIG WARNS OF ESCALATING SERIES OF CRISES WITH RISING COSTS
•HOENIG: LARGE FINANCIAL FIRMS CAN EXPECT BAILOUTS IN FUTURE
•HOENIG SAYS BIG FINANCIAL FIRMS MUST NOT HOLD ECONOMY `HOSTAGE'
•HOENIG: LARGE FIRMS WERE `GAMING' CAPITAL STANDARDS PRE-CRISIS
•HOENIG:BIG FIRMS `HAVE SIGNIFICANT INCENTIVES' TO INCREASE RISK
•HOENIG: TOO-BIG-TO-FAIL FIRMS POSE `GREATEST RISK' TO ECONOMY
•HOENIG SAYS BIG FINANCIAL FIRMS ENJOY `HUGE' FUNDING ADVANTAGE
And the last one:
•FED'S HOENIG SAYS `HISTORY IS ON MY SIDE'
Wednesday, February 23, 2011
Geithner Says Not To Worry About Surging Oil Prices: "Central Banks Have A Lot Of Experience In Managing These Things"
Geithner Says Not To Worry About Surging Oil Prices: "Central Banks Have A Lot Of Experience In Managing These Things"
Submitted by Tyler Durden on 02/23/2011 11:51 -0500
You really can't make this shit up: "The economy is in a much stronger position to handle” rising oil prices, Tim Geithner said today during a Bloomberg Breakfast in Washington. “Central banks have a lot of experience in managing these things." We are, all of us, now doomed.
Submitted by Tyler Durden on 02/23/2011 11:51 -0500
You really can't make this shit up: "The economy is in a much stronger position to handle” rising oil prices, Tim Geithner said today during a Bloomberg Breakfast in Washington. “Central banks have a lot of experience in managing these things." We are, all of us, now doomed.
Brent Passes $110
Brent Passes $110
Submitted by Tyler Durden on 02/23/2011 10:19 -0500
CrudeGreat Depressionrecovery
A $10 move in a week is just what the doctor ordered to destroy the last trace of surreality in the whole "economic recovery" story. At this rate we will take out all time high crude prices by mid March. As we have been saying since December, a rapid move in oil will undo years of carefully planned propaganda and money printing. Yet the weakness that "nobody could have possibly predicted" is just as we had forecast: global and US weakness in late February/March, market swoons in March/April (as per DeMark's repeat appearance), Fed releases early indications of QE3 in May. In the meantime, we also get a war as a bonus to boost the US military-defense industrial complex. Pretty much a rerun of the first great depression to the dot.
Submitted by Tyler Durden on 02/23/2011 10:19 -0500
CrudeGreat Depressionrecovery
A $10 move in a week is just what the doctor ordered to destroy the last trace of surreality in the whole "economic recovery" story. At this rate we will take out all time high crude prices by mid March. As we have been saying since December, a rapid move in oil will undo years of carefully planned propaganda and money printing. Yet the weakness that "nobody could have possibly predicted" is just as we had forecast: global and US weakness in late February/March, market swoons in March/April (as per DeMark's repeat appearance), Fed releases early indications of QE3 in May. In the meantime, we also get a war as a bonus to boost the US military-defense industrial complex. Pretty much a rerun of the first great depression to the dot.
Gaddafi Son Says Army Will Protect Oil Infrastructure, Blames Al-Qaeda For Carpet Bombing As 10,000 Now Reported Dead
Gaddafi Son Says Army Will Protect Oil Infrastructure, Blames Al-Qaeda For Carpet Bombing As 10,000 Now Reported Dead
Submitted by Tyler Durden on 02/23/2011 14:00 -0500
AfghanistanItalyNewspaperRealityTwitter
And so we go from one lunatic to another. In an "exclusive interview" with the FT, Muammar Gadaffi's son, al-Saadi, told the newspaper, whose parent Pearson PLC is 3% owner by the Libyan Sovereign Wealth Fund, "made it clear that he believed any such new regime would still include his father. “My father would stay as the big father who advises,” he told the Financial Times, adding that direct administrative powers should be handed over to a new generation." And further confirming the soon to be deposed ruler's break with reality, were accusations that the reason why the Libyan airforce has been shooting at protestors over the past week, was to protect the country from "thousands of al-Qaeda" infiltrators who had taken over the eastern part of the country. Touching on a topic discussed yesterday, namely that the Gaddafi regime may engage in sabotage against its oil industry, al-Saadi “said that the army would be sent to guard facilities if necessary. The army is still very strong,” he said. “If we hear anything, we will send some battalions. When people see the army, they will be afraid.” In other words, expect to hear news of major disruptions in the country's oil infrastructure which will promptly be blamed on al-Qaeda by the Gaddafis. And going back to reality, we read that the death toll in Libya has surpassed 10,000 people.
Submitted by Tyler Durden on 02/23/2011 14:00 -0500
AfghanistanItalyNewspaperRealityTwitter
And so we go from one lunatic to another. In an "exclusive interview" with the FT, Muammar Gadaffi's son, al-Saadi, told the newspaper, whose parent Pearson PLC is 3% owner by the Libyan Sovereign Wealth Fund, "made it clear that he believed any such new regime would still include his father. “My father would stay as the big father who advises,” he told the Financial Times, adding that direct administrative powers should be handed over to a new generation." And further confirming the soon to be deposed ruler's break with reality, were accusations that the reason why the Libyan airforce has been shooting at protestors over the past week, was to protect the country from "thousands of al-Qaeda" infiltrators who had taken over the eastern part of the country. Touching on a topic discussed yesterday, namely that the Gaddafi regime may engage in sabotage against its oil industry, al-Saadi “said that the army would be sent to guard facilities if necessary. The army is still very strong,” he said. “If we hear anything, we will send some battalions. When people see the army, they will be afraid.” In other words, expect to hear news of major disruptions in the country's oil infrastructure which will promptly be blamed on al-Qaeda by the Gaddafis. And going back to reality, we read that the death toll in Libya has surpassed 10,000 people.
Korean Bank Run Spreading: Eighth Bank Closes Following "Massive Withdrawals"
Korean Bank Run Spreading: Eighth Bank Closes Following "Massive Withdrawals"
Submitted by Tyler Durden on 02/22/2011 19:28 -0500
Bank RunFederal Deposit Insurance CorporationKIM
The quietest bank run that has so far completely evaded mainstream attention, that of Korea, is spreading, and an eighth bank has now shuttered after "Domin Bank, a savings bank with a capital adequacy ratio below 5 percent, voluntarily decided yesterday to suspend its operations temporarily because of massive withdrawals." As JoongAng reports: "The decision took both depositors and financial regulators by surprise since it was the first time that a local bank shut its doors on its own." Apparently the courageous decision by the Financial Services Chairman Kim Seok-dong to deposit $17,864 in a troubled bank has not done much if anything to prevent the locals from realizing that their banking system is built on a house of cards.
From JoongAng Daily:
Domin Bank, which has six branches in Gangwon, was placed on a watch list last week by the Financial Services Commission. The move triggered a bank run on Domin Bank.
According to Domin Bank, deposits amounting 31.8 billion won ($28.2 million) were withdrawn since last Thursday, including 18.8 billion won on Monday.
The news of Domin Bank’s temporary closure came as FSC Chairman Kim Seok-dong was visiting Mokpo, South Jeolla, where recently suspended Bohae Savings Bank is located.
Seok-dong unhappy:
“This savings bank was supposed to submit a management improvement plan to the FSC by Feb. 24,” said Kim. “We will now have to review whether [the closure] is even legally O.K.”
More classic quotes follow:
Bae Joon-soo, senior FSC deputy director, said, “I think it is legally and morally wrong for a financial firm to do such a thing.”
Now we get it: according to the banking cartel's ethical standard it is "legally and morally wrong" for a bank to admit it is insolvent. Perhaps if America had made this clear 2 years ago, we could have spared ourselves two years of fingerpointing and fictitious lawsuits. After all, say what you will about the tenets of banker national socialism, at least it's an ethos.
The financial regulator and the Federation of Savings Banks failed to persuade Domin Bank to resume its operation yesterday.
The bank in notices posted on the doors of every branch said that it had taken the move “as a means to soothe the crisis involving massive withdrawals.”
The notice continued, “We will resume operation after we are reborn as a sound savings bank by increasing our paid-in capital to achieve a capital adequacy ratio of 8 percent.”
We repeat our appeal for the FDIC and Treasury to send our crack fraud and book cooking team to guarantee to the Koreans that their bankrupt banks are perfectly ok before this thing gets really out of control, and migrates to China, where a billion man bank run will be a little harder to keep under wraps.
Submitted by Tyler Durden on 02/22/2011 19:28 -0500
Bank RunFederal Deposit Insurance CorporationKIM
The quietest bank run that has so far completely evaded mainstream attention, that of Korea, is spreading, and an eighth bank has now shuttered after "Domin Bank, a savings bank with a capital adequacy ratio below 5 percent, voluntarily decided yesterday to suspend its operations temporarily because of massive withdrawals." As JoongAng reports: "The decision took both depositors and financial regulators by surprise since it was the first time that a local bank shut its doors on its own." Apparently the courageous decision by the Financial Services Chairman Kim Seok-dong to deposit $17,864 in a troubled bank has not done much if anything to prevent the locals from realizing that their banking system is built on a house of cards.
From JoongAng Daily:
Domin Bank, which has six branches in Gangwon, was placed on a watch list last week by the Financial Services Commission. The move triggered a bank run on Domin Bank.
According to Domin Bank, deposits amounting 31.8 billion won ($28.2 million) were withdrawn since last Thursday, including 18.8 billion won on Monday.
The news of Domin Bank’s temporary closure came as FSC Chairman Kim Seok-dong was visiting Mokpo, South Jeolla, where recently suspended Bohae Savings Bank is located.
Seok-dong unhappy:
“This savings bank was supposed to submit a management improvement plan to the FSC by Feb. 24,” said Kim. “We will now have to review whether [the closure] is even legally O.K.”
More classic quotes follow:
Bae Joon-soo, senior FSC deputy director, said, “I think it is legally and morally wrong for a financial firm to do such a thing.”
Now we get it: according to the banking cartel's ethical standard it is "legally and morally wrong" for a bank to admit it is insolvent. Perhaps if America had made this clear 2 years ago, we could have spared ourselves two years of fingerpointing and fictitious lawsuits. After all, say what you will about the tenets of banker national socialism, at least it's an ethos.
The financial regulator and the Federation of Savings Banks failed to persuade Domin Bank to resume its operation yesterday.
The bank in notices posted on the doors of every branch said that it had taken the move “as a means to soothe the crisis involving massive withdrawals.”
The notice continued, “We will resume operation after we are reborn as a sound savings bank by increasing our paid-in capital to achieve a capital adequacy ratio of 8 percent.”
We repeat our appeal for the FDIC and Treasury to send our crack fraud and book cooking team to guarantee to the Koreans that their bankrupt banks are perfectly ok before this thing gets really out of control, and migrates to China, where a billion man bank run will be a little harder to keep under wraps.
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