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| | Page 1, 2 | WTF?! WTF?! WTF? G7 Leaders just agreed on a GLOBAL four to seven day "bank holiday".
| Anonymous Coward
User ID: 488861
10/11/2008 9:59 AM | | Re: WTF?! WTF?! WTF? G7 Leaders just agreed on a GLOBAL four to seven day "bank holiday". | Quote |
tuesday
consequence management response team
crbne
tuesday at banks? |
| Anonymous Coward
User ID: 488861
10/11/2008 10:02 AM | | Re: WTF?! WTF?! WTF? G7 Leaders just agreed on a GLOBAL four to seven day "bank holiday". | Quote |
and now this...
a news link
Red Alert: The G-7 -- Geopolitics, Politics and the Financial Crisis
[link to www.rightsidenews.com]
October 10, 2008
Stratfor Today
The finance ministers of the G-7 countries are meeting in Washington. The first announcements on the meetings will come this weekend. It is not too extreme to say that the outcome of these meetings could redefine how the financial markets work, certainly for months and perhaps for a generation.
The Americans are arguing that the regime of intervention and bailouts be allowed to continue. Others, like the British, are arguing for what in effect would be the nationalization of financial markets on a global scale. It is not clear what will be decided, but it is clear that this meeting matters.
The meetings will extend through the weekend to include members of the G-20 countries, which together account for about 90 percent of the global economy. This meeting was called because previous steps have not freed up lending between financial institutions, and the financial problem has increasingly become an economic one, affecting production and consumption in the global economy. The political leadership of these countries is under extreme pressure from the public to do something to solve - or at least alleviate - the problem.
Underlying this political pressure is a sense that the financial class, people who run global financial institutions, have failed to behave responsibly and effectively, and have therefore lost their legitimacy. The expectation, reasonable or not, is that the political system will now supplant these managers and impose at least a temporary solution. The finance ministers therefore have a political mandate, almost global in scope, to act decisively. The question is what they will do?
That question then divides further into two parts. The first is whether they will try to craft a single, global, integrated solution. The second is the degree to which they will take control of the financial system - and inter-financial institution lending in particular. (A primary reason for the credit crunch is that banks are currently afraid to lend - even to each other.) Thus far, attempts at solutions on the whole have been national rather than international. In addition, they have been built around incentivizing certain action and increasing the available money in the system.
So far, this hasn't worked. The first problem is that financial institutions have not increased interbank lending significantly because they are concerned about the unknowns in the borrower's balance sheet, and about the borrowers' ability to repay the loans. With even large institutions failing, the fear is that other institutions will fail, but since the identity of the ones that will fail is unknown, lending on any terms - with or without government money - is imprudent. There is more lending to non-financial corporations than to financial ones because fewer unknowns are involved. Therefore, in the United States, infusions and promises of infusion of funds have not solved the basic problem: the uncertain solvency of the borrower.
The second problem is the international character of the crisis. An example from the Icelandic meltdown is relevant. The government of Iceland promised to repay Icelandic depositors in the island country's failed banks. They did not extend the guarantee to non-Icelandic depositors. Partly they simply didn't have the cash, but partly the view has been that taking care of one's own takes priority. Countries do not want to bail out foreigners, and different governments do not want to assume the liabilities of other nations. The nature of political solutions is always that politicians respond to their own constituencies, not to people who can't vote for them.
This weekend some basic decisions have to be made. The first is whether to give the bailouts time to work, to increase the packages or to accept that they have failed and move to the next step. The next step is for governments and central banks to take over decision making from financial institutions, and cause them to lend. This can be done in one of two ways. The first is to guarantee the loans made between financial institutions so that solvency is not an issue and risk is eliminated. The second is to directly take over the lending process, with the state dictating how much is lent to whom. In a real sense, the distinction between the two is not as significant as it appears. The market is abolished and wealth is distributed through mechanisms created by the state, with risk eliminated from the system, or more precisely, transferred from the lender to the taxing authority of the state.
The more complex issue is how to manage this on an international scale. For example, American banks lend to European banks. If the United States comes up with a plan which guarantees loans to U.S. banks but not European banks, and Europeans lend to Europe and not the United States, the integration of the global economy will very quickly shatter, leading to significant limitations on international trade, currency convertibility and so on. You will nationalize economies that can't stand being purely national.
At the same time, there is no global mechanism for managing radical solutions. In taking over lending or guarantees, the administrative structure is everything. Managing the interbank-lending of the global economy is something for which there is no institution. And even with coordination, finance ministries and central banks would find it difficult to bear the burden - not to mention managing the system's Herculean size and labyrinthine complexity. But if the G-7 in effect nationalize global financial systems and do it without international understandings and coordination, the consequences will be immediate and serious.
The G-7 is looking hard for a solution that will not require this level of intrusion, both because they don't want to abolish markets even temporarily, and more important, because they have no idea how to manage this on a global scale. They very much want to have the problem solved with liquidity injections and bailouts. Their inclination is to give the current regime some more time. The problem is that the global equity markets are destroying value at extremely high rates and declines are approaching historic levels.
In other words, a crisis in the financial system is becoming an economic problem - and that means public pressure will surge, not decline. Therefore, it is plausible that they might choose to ask for what FDR did in 1933, a bank holiday, which in this case would be the suspension of trading on equity markets globally for several days while administrative solutions are reached. We have no information whatsoever that they are thinking of this, but in starting to grapple with a problem of this magnitude - and searching for solutions on this scale - it is totally understandable that they might like to buy some time.
It is not clear what they will decide. Fundamental issues to watch for are whether they move from manipulating markets through government intrusions that leave the markets fundamentally free, or do they abandon free markets at least temporarily.
Another such issue is whether they can find a way to do this globally or whether it will be done nationally. If they do go international and suspending markets, the question is how they will unwind this situation. It will be easier to start this than to end it and state-controlled markets are usually not very attractive in the long run. But then again, neither is where we are now. |
| Anonymous Coward
User ID: 170917
10/11/2008 10:05 AM | | Re: WTF?! WTF?! WTF? G7 Leaders just agreed on a GLOBAL four to seven day "bank holiday". | Quote |
does anyone know when this meeting is supposed to finish and we will know something of what was decided upon?
today, tonight, Sunday,
just wondering what to watch for and when |
| Anonymous Coward
User ID: 488861
10/11/2008 10:05 AM | | Re: WTF?! WTF?! WTF? G7 Leaders just agreed on a GLOBAL four to seven day "bank holiday". | Quote |
After a month-long run on American banks, Franklin Delano Roosevelt proclaimed a Bank Holiday beginning March 6, 1933 that shut down the banking system. When banks reopened on March 13, 1933, depositors stood in line to return their hoarded cash. This paper traces the remarkable turnaround in the public's confidence to the Emergency Banking Act, passed by Congress on March 9, 1933. Roosevelt used the emergency currency provisions of the Act to prod the Federal Reserve to create de facto deposit insurance in the reopened banks. The contemporary press confirms that the public recognized the implicit guarantee, and as a result, believed the President's words in his first Fireside Chat on March 12, 1933, that the reopened banks would be safe. The public responded by returning more than half of their hoarded cash to the banks within two weeks and by bidding up stock prices on March 15, 1933, the first trading day after the Bank Holiday ended, by the largest ever one-day percentage price increase. The Bank Holiday and the Emergency Banking Act of 1933 reestablished the integrity of the payments system and demonstrated the power of credible regime-shifting policies. |
| Anonymous Coward
User ID: 459297
10/11/2008 10:07 AM | | Re: WTF?! WTF?! WTF? G7 Leaders just agreed on a GLOBAL four to seven day "bank holiday". | Quote |
Extraordary claims need extraordinary proof. eg Link. |
| Anonymous Coward
User ID: 488861
10/11/2008 10:08 AM | | Re: WTF?! WTF?! WTF? G7 Leaders just agreed on a GLOBAL four to seven day "bank holiday". | Quote |
March 5, 1933
Roosevelt declares bank holiday
When Franklin Roosevelt started his first term in the White House in 1933, he inherited a nation in the depths of the Depression. A record 13 million Americans were unemployed and businesses were drowning in red ink. Perhaps even more pressing was the head-spinning string of bank failures which had triggered a frantic run on the nationÝs savings vaults. The wave of withdrawals by panic-stricken depositors further dried up banks' already-depleted supply of liquid assets and pushed the nation's banking system to the brink of disaster. On March 5--the day after being sworn into office--Roosevelt stepped into the breach and declared a "bank holiday," which, for four days forced the closure of the nation's banks and halted all financial transactions. The "holiday" not only helped stem the frantic run on banks, but gave Roosevelt time to push the Emergency Banking Act through the legislative chain. Passed by Congress on March 9, the act handed the president a far-reaching grip over bank dealings and "foreign transactions." The legislation also paved the path for solvent banks to resume business as early as March 10. Three short days later nearly 1,000 banks were up and running again |
| Anonymous Coward
User ID: 459297
10/11/2008 10:10 AM | | Re: WTF?! WTF?! WTF? G7 Leaders just agreed on a GLOBAL four to seven day "bank holiday". | Quote |
I refuse to participate in your linkless society. |
| Anonymous Coward
User ID: 472846
10/11/2008 10:11 AM | | Re: WTF?! WTF?! WTF? G7 Leaders just agreed on a GLOBAL four to seven day "bank holiday". | Quote |
No link...you stink.  |
| Anonymous Coward
User ID: 488861
10/11/2008 10:14 AM | | Re: WTF?! WTF?! WTF? G7 Leaders just agreed on a GLOBAL four to seven day "bank holiday". | Quote |
my hindu friend works on it contract work on gov contractor it contract project in DC,,,, hears shit
he has access to much insider rumors and shit...
13 is day... that is all
=======================================
read
11, 13 and 33
The Illuminati / Freemason Signature
Occultists the world over believe that, once a symbol is created, it acquires power of its own, and more power is generated when such symbol(s) are created without the profane [uninitiated] knowing about it. And, the greatest power of all is created in the symbol(s) if the uninitiated NEVER discover that the symbol exists. MASONIC SYMBOLS OF POWER IN THEIR SEAT OF POWER -- WASHINGTON, D.C.
There are 13 leaves on the left olive branch with 13 berries. 13 stripes on the middle shield. 13 arrows on the right. 13 stars above the eagles head. 13 letters in the "E Pluribus Unum" on the ribbon. 13 letters in Annuit Coeptis. There are 13 blocks top to bottom on the pyramid. Fritz Springmeir in his The 13 Bloodlines says these 13 blocks represent the 13 Satanic family's.
[link to www.theforbiddenknowledge.com]
Now you would normally read that as 1776, which is correct. THAT IS THE "OBVIOUS" MEANING OF THOSE LETTERS. But what is the HIDDEN NUMERICAL VALUE OF THOSE LETTERS? And what if we took all of the Roman Numerals together and added them up? The Romans used the following letters for their number system: DCLXVI with D=500, C=100, L=50, X=10, V=5, nd I - 1. The M letter was not used until much later. Now if we take these letters and add them all up, we come to 666 |
| Anonymous Coward
User ID: 520867
10/11/2008 10:36 AM | | Re: WTF?! WTF?! WTF? G7 Leaders just agreed on a GLOBAL four to seven day "bank holiday". | Quote |
This isn't from the real WTF Guy. The real one always provide a link. |
| Anonymous Coward
User ID: 317795
10/11/2008 10:36 AM | | Re: WTF?! WTF?! WTF? G7 Leaders just agreed on a GLOBAL four to seven day "bank holiday". | Quote |
So CNN is not aware of this bank holiday yet? Someone should tell them! |
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