[Marxism] Bourgeois BS ... Re: The Junk Credit Crisis

Steve Palmer 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
> It's a Bloodbath. That’s 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. Yesterday’s sell-off added to last week’s 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 we’ve 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 
> Greenspan’s "cheap money" policy. Those days are over. Economic 
> fundamentals are taking hold. The market swings will get deeper and more 
> violent as the Fed’s 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
> ________________________________________________
> YOU MUST clip all extraneous text before replying to a message.
> Send list submissions to: Marxism at lists.econ.utah.edu
> Set your options at: http://lists.econ.utah.edu/mailman/listinfo/marxism

Sick sense of humor? Visit Yahoo! TV's 
Comedy with an Edge to see what's on, when. 

More information about the Marxism mailing list