[Marxism] Bourgeois BS ... Re: The Junk Credit Crisis
spalmer999 at yahoo.com
Thu Aug 9 10:15:17 MDT 2007
Wednesday, August 1, 2007; 1:25 AM:
BNP Paribas says unaffected by subprime issues
PARIS (Reuters) - French bank BNP Paribas (BNPP.PA) said on Wednesday
it was unaffected by problems in the U.S. subprime mortgage sector,
which has been a cause of concern for financial services companies ....
Thursday, August 9, 2007; 8:10 AM:
BNP freezes $2.2 bln of funds over subprime
PARIS (Reuters) - France's biggest listed bank, BNP Paribas (BNPP.PA),
froze 1.6 billion euros ($2.2 billion) worth of funds on Thursday,
citing the U.S. subprime mortgage sector woes that have rattled
financial markets worldwide.
--- Louis Proyect <lnp3 at panix.com> wrote:
> Counterpunch, August 6, 2007
> The Junk Credit Crisis
> Judgment Week on Wall Street
> By MIKE WHITNEY
> It's a Bloodbath. Thats the only way to describe it.
> On Friday the Dow Jones took a 280 point nosedive on fears that that
> losses in the subprime market will spill over into the broader economy
> and cut into GDP. Ever since the two Bears Sterns hedge funds folded a
> couple weeks ago the stock market has been writhing like a drug-addict
> in a detox-cell. Yesterdays sell-off added to last weeks plunge that
> wiped out $2.1 trillion in value from global equity markets. New York
> investment guru, Jim Rogers said that the real market is "one of the
> biggest bubbles weve ever had in credit" and that the subprime rout
> "has a long way to go."
> We are now beginning to feel the first tremors from the massive credit
> expansion which began 6 years ago at the Federal Reserve.
> The trillions of dollars which were pumped into the global economy via
> low interest rates and increased money supply have raised the nominal
> value of equities, but at great cost. Now, stocks will fall sharply and
> businesses will fail as volatility increases and liquidity dries up.
> Stagnant wages and a declining dollar have thrust the country into a
> deflationary cycle which has---up to this point---been concealed by
> Greenspans "cheap money" policy. Those days are over. Economic
> fundamentals are taking hold. The market swings will get deeper and more
> violent as the Feds massive credit bubble continues to unwind.
> Trillions of dollars of market value will vanish overnight. The stock
> market will go into a long-term swoon.
> full: http://www.counterpunch.org/whitney08062007.html
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