[Gebari]

From one of the most respected business journalists in Britain. He's been right many times in the past. It's rather worrying seeing such doom from such a person.

link
$this->bbcode_second_pass_quote('', 'W')e face extreme danger. Unless there is immediate intervention on every front by all the major powers acting in concert, we risk a disintegration of global finance within days. Nobody will be spared, unless they own gold bars.

[Revi]

Really really scary post! Kudos!

Here's an interesting bit from it:

"The European Central Bank – which raised rates into the teeth of the crisis in July – has played a shockingly destructive role in this enveloping slump. Its growth predictions this year have been, and still are, delusional. Neglecting its global role, it has vastly complicated the fire-fighting efforts of Washington.

It could have offered “cover” to the US Federal Reserve this spring when Ben Bernanke was forced by events to slash rates to 2pc. It could at least have signalled an end to monetary tightening. That is how an ally ought to behave.

Instead, it stuck maniacally to its Gothic script, with equally unhappy consequences for both sides of the Atlantic, as well as for China, Japan, and India. The euro rocketed yet further, which it turn set off an oil shock as crude metamorphosed into an anti-dollar with leverage.

The ECB policy was self-defeating, even on its own terms. It merely drove headline inflation even higher, while deeper forces of underlying debt deflation pulled the real economies of Germany, Italy, France, and Spain into a recessionary vortex. "

[shady28]

More kudos +++

The EU bankers have been arrogant and in an extreme case of denial for the past year.

This is the telling point in the article :

"The lesson of the 1930s is that any country trying to reflate in isolation will be punished. The crisis will ricochet from one economy to another until every one is crippled. We are seeing it play again in this drama as our leaders fail to rise above their narrow, parochial agendas.

...

But the risk of a dollar collapse is one for the distant future. Right now the world faces the opposite problem. There is a wild scramble for dollars as a $10 trillion pyramid of global lending based on dollar balance sheets “delevers” with a vengeance.

This is a “short squeeze” on those who have used the dollar for a vast global carry trade. International banks are facing margin calls on their dollar leverage. It is why the Fed is having to provide $1.25 trillion in dollar liquidity for the entire global system, according to estimates by Brad Setser from the Center for Geoeconomic Studies. "

[Rubin_Flagg]

Asia will open lower today followed by Europe and then NA. This is the beginning of the global collapse. What will arise in its place?

[DaleFromCalgary]

"we risk a disintegration of global finance within days. Nobody will be spared, unless they own gold bars."

Let's check back next month and see how hysterical this sounds. After reading Orlov's REINVENTING COLLAPSE, which pointed out that gold is useless in economic disaster, I have been stocking up on canned food and private-equity oil company shares.

As others have mentioned elsewhere, clear your decks and pay off any debt.

[DantesPeak]

$this->bbcode_second_pass_quote('Gebari', 'F')rom one of the most respected business journalists in Britain. He's been right many times in the past. It's rather worrying seeing such doom from such a person. link $this->bbcode_second_pass_quote('', 'W')e face extreme danger. Unless there is immediate intervention on every front by all the major powers acting in concert, we risk a disintegration of global finance within days. Nobody will be spared, unless they own gold bars.

[aldente]

$this->bbcode_second_pass_quote('Revi', 'I')nstead, it stuck maniacally to its Gothic script, with equally unhappy consequences for both sides of the Atlantic, as well as for China, Japan, and India.

[Mo_Oil_Dave]

I have been seeing a particular phrase around some assorted fringe financial newsletter on the net. Then I found this.

This from a friend in Atlanta with strong banking connections: "Reliable word that Bank of America branch managers just received a letter or memo from the USFed instructing them to perhaps be ready for a one-week universal shut-down of the banking system, including access to checking accounts, savings accounts and credit cards. Reliable word has it that BofA bank branches received a shipment of signs last week, reading "WE'RE SORRY, BUT DUE TO CIRCUMSTANCES BEYOND OUR CONTROL, WE CANNOT BE OPEN AT THIS TIME."

This quote is from the October 2 2008 "Hat trick letter" written by Jim willie CB. It is as close to beeing sourced as I have seen so far.

Maybe there is something to it, or not. The rest of the letter is an interesting read.

David

[americandream]

$this->bbcode_second_pass_quote('DantesPeak', '')$this->bbcode_second_pass_quote('Gebari', 'F')rom one of the most respected business journalists in Britain. He's been right many times in the past. It's rather worrying seeing such doom from such a person. link $this->bbcode_second_pass_quote('', 'W')e face extreme danger. Unless there is immediate intervention on every front by all the major powers acting in concert, we risk a disintegration of global finance within days. Nobody will be spared, unless they own gold bars.

[Eli]

Even if everyone acts in concert there is no way to stop the implosion of the totally unregulated CDS market.

[Cashmere]

$this->bbcode_second_pass_quote('americandream', 'T')his dwang Pilchard-Evans is a nutjob..he keeps advocating the same ol crap shovelling free market agenda like the addict he is. Dumbass knows the system is in tank mode but can't really bring hismelf to say, we were wrong.

[Buggy]

i want my mommy.

[eastbay]

$this->bbcode_second_pass_quote('Buggy', 'i') want my mommy.

[the48thronin]

I stated on the xmradio show I appear on almost daily several weeks ago that the global economic collapse was already happening and could not now be prevented. The size of the global economy did not prevent it's fall simply protracted the time duration of it's occurrence before it was noticed.

The host of the show and I have had many conversations about PO and the economic disaster resulting from "derivatives" of mortgage bundles (the latest derivative fad). The sheer amount of these derivatives is staggering. The world paper poker game is over everyone lost!

Welcome to my world Pilchard-Evans! I am sorry to meet you here!
$this->bbcode_second_pass_quote('', 'D')uring the past week, we have tipped over the edge, into the middle of the abyss. Systemic collapse is in full train. The Netherlands has just rushed through a second, more sweeping nationalisation of Fortis. Ireland and Greece have had to rescue all their banks. Iceland is facing an Argentine denouement.
The US commercial paper market is closed. It shrank $95bn last week, and has lost $208bn in three weeks. The interbank lending market has seized up. There are almost no bids. It is a ghost market. Healthy companies cannot roll over debt. Some will have to sack staff today to stave off default.

As the unflappable Warren Buffett puts it, the credit freeze is “sucking blood” out of the economy. “In my adult lifetime, I don’t think I’ve ever seen people as fearful,” he said.
We are fast approaching the point of no return. The only way out of this calamitous descent is “shock and awe” on a global scale, and even that may not be enough.

[Snowrunner]

$this->bbcode_second_pass_quote('Cashmere', 'I')f you are, please read up on who created Fannie and Freddie, on who created the Federal Reserve, and on who has been passing all of the recent government bail outs.

[Cashmere]

$this->bbcode_second_pass_quote('Snowrunner', '')$this->bbcode_second_pass_quote('Cashmere', 'I')f you are, please read up on who created Fannie and Freddie, on who created the Federal Reserve, and on who has been passing all of the recent government bail outs.

[firefly]

$this->bbcode_second_pass_quote('Revi', 'R')eally really scary post! Kudos!

Here's an interesting bit from it:

"The European Central Bank – which raised rates into the teeth of the crisis in July – has played a shockingly destructive role in this enveloping slump. Its growth predictions this year have been, and still are, delusional. Neglecting its global role, it has vastly complicated the fire-fighting efforts of Washington.

It could have offered “cover” to the US Federal Reserve this spring when Ben Bernanke was forced by events to slash rates to 2pc. It could at least have signalled an end to monetary tightening. That is how an ally ought to behave.

Instead, it stuck maniacally to its Gothic script, with equally unhappy consequences for both sides of the Atlantic, as well as for China, Japan, and India. The euro rocketed yet further, which it turn set off an oil shock as crude metamorphosed into an anti-dollar with leverage.

The ECB policy was self-defeating, even on its own terms. It merely drove headline inflation even higher, while deeper forces of underlying debt deflation pulled the real economies of Germany, Italy, France, and Spain into a recessionary vortex. "

[Snowrunner]

$this->bbcode_second_pass_quote('Cashmere', 'R')idiculous.

You can't seriously dismiss the following logic:

Govt. sets up fannie and freddie and sets the "conforming loan" limits and conditions under which banks can dump mortgages on F/F.

Banks, now able to originate loans for which they will have ZERO RISK, originate very RISKY loans and dump them on FF.

Repeat until the problem is so big that it becomes the current problem.

Any thought whatsoever that the government isn't close to 100% responsible for this mess is ridiculous.

The government set up the artificial, non-market system of risk dumping.

The Banks did exactly as what would be predicted.

[frankthetank]

Can someone explain where this leads us? Deflation/Inflation/??? ...do the grocery stores go empty? Will credit cards stop working? Will banks have no money? Will gas go to $1.00 gallon? I just don't understand where we are headed..

[Roccland]

Relax - we have 15 years...

All is well.