Economy Rigging 1

Euro PonZi Scam Under Stress May 31, 2011

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They can try to ‘delay and pray’ but the euro is running out of time – Telegraph

EU Holds Unannounced Emergency Talks With Greece Over Weekend To Draft Second Bailout As Two Year Greek Bonds Pass 26% | zero hedge


Backstory On FED Lending to ECB Kept Secret. May 30, 2011

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The Fed’s secret giveaway to European banks | Felix Salmon

“Here’s a guess. I’m relying on a couple of papers that analyzed BIS data after the fact and a key fact, that the Fed made an emergency loan to the ECB of something like $630B when the crisis hit. The mechanism described – which I first heard about through Brad Setser’s old blog – is that Lehman was a huge US money market issuer but that no one – literally – knew that European banks were very heavily invested in the US money markets for short-term funding. The reasons are somewhat obscure but they invested through London because there were basically no reporting rules on the capital flows. The process then goes: Lehman collapses, the European banks need dollars because they otherwise have no short-term money, so they grab what they can, causing a complete absence of dollars in the system, then the system completely locks up with credit indicators going skyward – which makes sense because now you can see why banks didn’t want to lend to each other, because if you needed to borrow you were in danger of short-term collapse – the Fed pumps dollars to the ECB and now it looks like they also kept some of the major European banks afloat. Maybe there was a side deal with the ECB. Maybe they were asked to step in because these defaults would have had crushing consequences to the system. Sounds like it.” – ANON

Bottom line: lack of reporting, particularly of capital flows, can have really, really bad consequences.

And what were the low interest 11-figure sum loans backed by… not that the taxpayers need to know such trivial details…

It was secret because no one needs to know they were reinforcing the house of cards.


Chomsky May 29, 2011

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Links May 26, 2011

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The Property Report: Irish Banks Shed U.S. Loan Holdings –

Here Is What Happens After Greece Defaults | zero hedge

Euro Debt Crisis: Greek Assets Could Go to ‘Fund of Experts’ – CNBC

Growing Lack Of Political Will In Euro Crisis Means More Risk Off |


Taibbi On Wall Street Above the Law May 23, 2011

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Links May 21, 2011

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Press TV

Libya Redux As US Escalates Syrian Showdown: Freezes Assets Of President Bashar al-Assad | zero hedge

The People vs. Goldman Sachs | Rolling Stone Politics

Nobel Winner Stiglitz Warns Job-Killing Austerity Measures Hurt Economies – Bloomberg

Goldman Warns That Spanish Bonds, EUR Poised For Technical Breakdown | zero hedge


Stiglitz On Bailout MAdness

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