Soros ,Volcker and Roubini see no bottom for world financial “collapse”

The magnitude of the crises is so deep and obvious as it has caused a global ‘ zero ‘ interest ‘ world plus unprecedented money printing with no end in sight. Plus on a daily basis new implosions for the balance sheets fractions happen and erode the capital ‘soundness ‘ – not of the banks who are basically broke but of the governments who guarantee for them. As money needs to be printed and the economy contracts even more alone the 6-70 tril CDS market will cause huge problems as more companies will be goıng bust. The most dangerous part is still to come then the collapse of the bond bubble is about to start in 6-9 months and interest rates will be rising due to money printing and lack of trust in the value of government guarantee’s. Banks as always in distress to make back money on behalf of their clients as they do not forward the lower financing the central banks provided they even raise interest rates for credit cards and all other rates they offer for consumers. That’s the exact opposite of the TARP program and some senators even claimed this abuse but the administration does not take the appropriate action and allows the banks to screw the mainstreeet after they financed their survival. Geithner is not doing what he is supposed to do and Obama is not really serious about his speeches where he claims to bring back moral hazard.

This pathetic lobbyists who claim these days that talent will run away from wall street as bonus is limited is pure bu….. as there is no place to go anyway. To have a job will be the bonus and even more so not to be in an uniform soon to be thrown into a disastrous war might even be the real deal. Things should be seen in a real perspective as the things go right now pure survival might be the issue soon not to earn a Porsche.

Soros sees no bottom for world financial “collapse”

NEW YORK (Reuters) – Renowned investor George Soros said on Friday the world financial system has effectively disintegrated, adding that there is yet no prospect of a near-term resolution to the crisis.

Soros said the turbulence is actually more severe than during the Great Depression, comparing the current situation to the demise of the Soviet Union.

He said the bankruptcy of Lehman Brothers in September marked a turning point in the functioning of the market system.

“We witnessed the collapse of the financial system,” Soros said at a Columbia University dinner. “It was placed on life support, and it’s still on life support. There’s no sign that we are anywhere near a bottom.”

His comments echoed those made earlier at the same conference by Paul Volcker, a former Federal Reserve chairman who is now a top adviser to President Barack Obama.

Volcker said industrial production around the world was declining even more rapidly than in the United States, which is itself under severe strain.

“I don’t remember any time, maybe even in the Great Depression, when things went down quite so fast, quite so uniformly around the world,” Volcker said.

Excerpt 2

Nowhere Near End of Crisis: Dr. Doom

Nouriel Roubini, one of the few economists who foretold much of the current financial turmoil, Friday said the United States is nowhere near the end of the banking and credit crisis.

“We are still in the third and fourth innings,” Roubini told Reuters in an interview, using a baseball analogy to drive home his view that the current cycle is only nearing its midpoint.

“And it’s getting worse,” said Roubini, a professor at New York University’s Stern School of Business and chairman of RGE Monitor, an independent economic research firm.

On Feb. 10, Treasury Secretary Timothy Geithner unveiled his newest bailout plan for banks, including the government’s so-called “stress tests” involving all banks with more than $100 billion in capital. Regulators will analyze the banks’ books far more closely than previously to see if they have the capital to endure worsening conditions.

“It is the step to form an objective way to decide which banks are illiquid and which ones are insolvent and to take over the insolvent bank,” Roubini said. “We have to take over some banks.”

Bank of America cnbc_comboQuoteMove(‘popup_bac_ID0EDH15839609’);[BAC 3.79 -0.14 (-3.56%) ] cnbc_quoteComponent_init_getData(“bac”,”WSODQ_COMPONENT_BAC_ID0EDH15839609″,”WSODQ”,”true”,”ID0EDH15839609″,”off”,”false”,”inLineQuote”); and Citigroup cnbc_comboQuoteMove(‘popup_c_ID0EFEAC15839609’);[C 1.95 -0.56 (-22.31%) ] cnbc_quoteComponent_init_getData(“c”,”WSODQ_COMPONENT_C_ID0EFEAC15839609″,”WSODQ”,”true”,”ID0EFEAC15839609″,”off”,”false”,”inLineQuote”); shares plummeted for a sixth straight day Friday, hammered by fears that the U.S. government could nationalize the banks, wiping out shareholders.

Nationalization or receivership of a bank need not be a permanent issue, Roubini added.

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~ by behindthematrix on February 22, 2009.

One Response to “Soros ,Volcker and Roubini see no bottom for world financial “collapse””

  1. Nassim Taleb spoke out in Davos about banks and the moral hazard of bailouts.

    He and Nouriel Roubini were both interviewed at CNBC recently, but soundbite journalists are incapable of handling their views sadly.

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