Deutsche Bank chairman Josef Ackermann said “we will all be losers” if governments clamp down on markets too zealously: “The pendulum might have swung too far,” Ackermann warned. “Consistent and global rules, and a level playing field is absolutely key to the global economy.”
Is he suggesting that regulating banks would be bad because it wouldn’t be a level playing field? This kind of pablum works well for the general sheep, but people who think know that it’s not a level playing field as it is right now because the WTO imposes regulations on third world countries and forces them to comply.
Haiti is an example where the nation can no longer afford to supply its own food because the WTO forced them to remove subsidies to its own farmers, while allowing the United States to keep subsidies on its farmers. Indeed, there is no level playing field. The system is designed, maintained and governed by representatives of big corporations. We can be rest assured guaranteed that none of the world leaders will do anything to change that.
The schemes organizations like the WTO created, behind closed doors and protected from oversight and the democratic process (and the people in the streets warning of exactly the situation we find ourselves in) by all manner of violent repression, under the mantra of “Globalisation,” often removed most of the natural market regulations that could have prevented the mess the Western nations are facing. Instead we have governments imposing internationalist treaties that impede the real free market.
Causes of sub-prime meltdown
The subprime meltdown , contrary to the rantings of many, was not caused by lending to low income people. Most of the lending done under the CRA was done by local banks, the subprime stuff was done by wall street. The local banks are the only ones with any money left.
As for Alan Greenspan wanting to limit it, this is malarcky because he lowered interest rates to fuel the bubble, then in his words “never thought a bank would act in a way that would lead to it’s own demise.” Can you imagine a man of his age making such a ridiculous statement? It would make you think he actually was complicit in the financial meltdown! What an idea.
Fannie and Freddie got to the subprime party late, seeing as they have gotten about 300 billion to cover all mortgage related losses, and the banks worldwide lost trillions. The subprime bubble was caused by your friends on wall street, who armed with a mathematical model, thought that if they spread the mortgages around enough it would spread the risk, so no one mortgage could affect a collection of mortgages. When in reality it spread the disease so everyone was infected.
The mention of depressionary times will come when the official unemployment figures hits over 10%. Right now with many people on social assistance it is at 14.2% and in the depression it was at 24%. These unemployment numbers do not include the people on well fair or lost hope in finding a job. In the 30’s the 24% unemployment included them.
Job Cuts Get Brutal: Sprint, Pfizer, Home Depot, Caterpillar
By Kirk Shinkle Posted: January 26, 2009 USNews
The job loss tally so far today: 54,500. Cuts are coming across industries as further weakness in the economy keeps major employers slashing away.
On the same day it agreed to buy rival drugmaker Wyeth, Pfizer said it would cut 15 percent from its combined workforce (that’s a bit less than 19,500 jobs). Meanwhile, Caterpillar is faring poorly in the global recession. It’s cutting its workforce by 20,000 including 11 percent of its workforce, or 12,000 jobs, and 8,000 contractors. Home Depot, a lingering victim of the downturn in both consumer spending and housing, said it would slash another 7,000 jobs as it shutters its high-end EXPO business. And finally, Sprint Nextel is eliminating 14 percent of its workforce, or 8,000 jobs.