Market crash 'could hit within weeks', warn bankers

[dixiegrrrrl]

(Especially since Bernanke has spoken and said he will continue same policies.)

A more severe crash than the one triggered by the collapse of Lehman Brothers could be on the way, according to alarm signals in the credit markets.

snip......"The problem is a shortage of liquidity – that is what is causing the problems with the banks. It feels exactly as it felt in 2008," said one senior London-based bank executive.

"I think we are heading for a market shock in September or October that will match anything we have ever seen before," said a senior credit banker at a major European bank.

http://www.telegraph.co.uk/finance/financialcrisis/8721151/Market-crash-could-hit-within-weeks-warn-bankers.html

[librechik]

1. They are sitting on trillions in cash, and liquidity is their problem?

They want to loot us again. And they will.

[RUMMYisFROSTED]

2. That sounds like a threat!

:think:

[sabrina 1]

3. I have been reading those warnings on British blogs

I don't know much about the details of all this so I wasn't sure if they are correct. But the consensus seems to be that 2008 was only phase #1 and that a repeat was expected, they just plugged holes temporarily.

I'm getting the feeling it's way worse than we know which is why there is all this desperation about the 'deficit'. I also read that more bailouts, as in Europe, will be necessary but they don't know how to get them without causing a huge uproar.

Their new IMF chief is getting a lot of the blame in Europe from I'm reading.

[dixiegrrrrl]

10. You are correct. "Lack of liquidity" is not the problem, of course.

It IS the excuse they used to force TARP, as others have pointed out.
Notice the stories about the TBTF banks actually charging people who are putting billions INTO the banks.
Lack of willingness to share/loan the money, that is a problem.

And, as you say, the problem was not fixed, nor will it be, until the bad debts are allowed to be settled, which of course means the banksters will have to own up to their ponzi, as will governments.
The only real choice was how bad of a crash we were going to have.
Would have been much shorter in 2000, a bit longer in 2002, much harder and longer in 2008, but they kept moving the deck chairs, so to speak, so now, it will be bad indeed.
One way or the other, the math will win out.
Smart people started preparing 10 years ago, lots more just before the first rumbles of 2008.

[xchrom]

4. what are you gonna do?

:shrug: except for some western countries -- they've eroded the demand side -- euro zone has had a persistent 9.9% unemployment for a while now...

bankers and financialists make money by elaborate extraction policies and moving money around quickly --

they have bribed all western political systems to a fare thee well -- corruption is endemic --

something has to give -- something has to fall down and stay down -- just hope it isn't the people.

[bemildred]

5. "Thank God it passed!" nt

[global1]

6. Are They Still "Too Big To Fail"?......nt

[Warpy]

7. "Shortage of liquidity?"

Most corporations are rolling in cash they haven't paid out in dividends.

The problem with banks is that they've been lining their pockets at the top, secure in the knowledge that they won't be allowed to fail completely.

While I agree they shouldn't be allowed to fail, obviously they need reform: any bank that finds itself undercapitalized needs to be nationalized in the short term, its corporate culture of thievery smashed, regulations reinstituted, the major thieves marched off to prison, and only returned to the private sector when they've been cleaned up and cleaned out.

That's the mistake they made in 2008, they didn't nationalize the bastards.

[nykym]

8. Is this the set-up

to get the tax holiday repatriation passed?

In 2004, when the U.S. enacted a repatriation tax holiday, the goal was to encourage U.S. multinationals to pay bigger cash dividends from their overseas subsidiaries and use the cash to make investments in the United States. Unfortunately, there is no evidence that it increased U.S. investment or jobs, and it cost taxpayers billions.

Link:http://www.treasury.gov/connect/blog/Pages/Just-the-Facts-The-Costs-of-a-Repatriation-Tax-Holiday.aspx

[OnlinePoker]

9. Screw this system

Obviously bailing them out last time did fuck all to help anybody but the bankers. Let the crash happen. What we need now is a complete reboot of the financial system.

[dixiegrrrrl]

11. Painfully true.