Financial Meltdown and the Bailouts: The Role of Speculative Trade. Wall Street Criminality on Display – Global Research

26-08-20 04:54:00,

The Role of Bailouts and Speculative trade

The elimination of the Glass-Steagall Act in November 1999 was essential to the process of dramatically cutting back the government’s role as a protector of the public interest on the financial services sector. The Glass-Steagall Act was an essential measure in US President Franklin D. Roosevelt’s New Deal.

Some view the New Deal as a strategy for saving capitalism by moderating ts most sharp-edged features. Instituted in 1933 in response to the onset of the Great Depression, the Glass-Steagall Act separated the operations of deposit-accepting banks from the more speculative activity of investment brokers.

The termination of the regulatory framework put in place by the Glass Steagall Act opened much new space for all kinds of experiments in the manipulation of money in financial markets. The changes began with the merger of different sorts of financial institutions including some in the insurance field. Those overseeing the reconstituted entities headquartered on Wall Street took advantage of their widened latitudes of operation. They developed all sorts of ways of elaborating their financial services and presenting them in new packages.

The word, “derivative” is often associated with many applications of the new possibilities in the reconstituted financial services sector. The word, derivative, can be applied to many kinds of transactions involving speculative bets of various sorts. As the word suggests, a derivative is derived from a fixed asset such as currency, bonds, stocks, and commodities. Alterations in the values of fixed assets affect the value of derivatives that often take the form of contracts between two or more parties.

One of the most famous derivatives in the era of the financial crash of 2007-2010 was described as mortgaged-backed securities. On the surface these bundles of debt-burdened properties might seem easy to understand. But that would be a delusion. The value of these products was affected, for instance, by unpredictable shifts in interest rates, liar loans extended to homebuyers who lacked the capacity to make regular mortgage payments, and significant shifts in the value of real estate.

President Bill Clinton Laughs It Up as He Signs the Repeal of the Glass-Steagall Act.

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Nine Chinese Financial Institutions With Over $1 Trillion Yuan In Assets Are Nationalized On The Same Day

20-07-20 11:07:00,

Perhaps it’s a coincidence that just two days after we reported that China has been rocked by an “unprecedented” surge in bank runs which forced local regulators to “publicly vouch for the soundness of its lenders as the police halted the run”, on Friday Chinese financial regulators took over a record nine financial institutions which they said broke rules and added risk to a financial system facing increasing headwinds from the coronavirus pandemic. Or perhaps the two are in fact connected, and as faith in China’s financial system sinks and more money is pulled out of the country’s insolvent banks, more banks will be bailed out or nationalized.

Whatever the case, the takeovers of four insurers, two trust firms and three securities companies that managed a combined 1 trillion yuan ($143 billion) in assets represent Beijing’s first major regulatory move this year and follows the extensively documented bailouts of several regional lenders last year. Among the companies taken over the China’s Banking and Insurance Regulatory Commission are Huaxia Life Insurance Co., Tianan Life Insurance Co., Tian An Property Insurance Co. and Yian Property Insurance Co, the regulator said on its website.

Meanwhile, China’s securities regulator said it would take over three other entities—New Times Securities, Guosheng Securities and Guosheng Futures—and two trust firms, New China Trust Co. and New Times Trust Co.

The regulators said the takeovers are aimed at ensuring “stable operations” of the firms, because well, what else can they say: most Chinese financial institutions are insolvent and this is just the beginning? Probably not.

The takeovers continue an effort launched by Chinese authorities in 2019 to prevent systemic risks by taking over failing banks – something Beijing had not done in decades over fears of sparking bank runs – while also curbing debt as the country’s growth slows.

There was another common threat among the insolvent companies. According to the WSJ, many of the newly-nationalized firms have been linked in Chinese media reports to disgraced financier Xiao Jianhua, the founder of Beijing-based Tomorrow Holding which also controlled Baoshang Bank Co., a troubled regional lender that was the subject of the highest profile seizure last year (see “Chinese Bank With $100 Billion In Assets Is Bailed Out“).

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“Catastrophic Financial Challenges” – 42 Hospitals Closed, Filed For Bankruptcy Due To COVID Pressures

23-06-20 07:42:00,

The American Hospital Association (AHA) warns, in a new report, that “hospitals and health systems face catastrophic financial challenges in light of the COVID-19 pandemic.”

From soaring COVID-19 costs to canceled services to plunging hospital revenue to purchasing personal protective equipment to reimbursement landscape challenges to decreasing patient volumes, many of these factors have triggered a recent bankruptcy wave and or closures of hospitals across the country.

AHA said the virus pandemic has created a cash crunch for many hospitals. These medical facilities are expected to lose upwards of $200 billion between March 1 and June 30, or about an average of $50.7 billion per month. U.S. nonfederal hospitals are expected to lose approximately $161.4 billion in revenue over the four months, due to canceled services (including nonelective surgeries and outpatient treatment). 

To better understand the financial challenges for many hospitals, AHA lists the top financial burdens: 

AHA said that even though the federal government provided financial assistance to hospitals during the virus outbreak – many facilities had existing financial pressures before 2020. 

Becker’s Hospital CFO Report provides a complete list of hospital bankruptcies or closures since January 1. These hospitals collectively operated 42 facilities. 

Our Lady of Bellefonte Hospital (Ashland, Ky.)  

Bon Secours Mercy Health closed Our Lady of Bellefonte Hospital in Ashland, Ky., on April 30. The 214-bed hospital was originally slated to shut down in September of this year, but the timeline was moved up after employees began accepting new jobs or tendering resignations. Bon Secours cited local competition as one reason for the hospital closure. Despite efforts to help sustain hospital operations, Bon Secours was unable to “effectively operate in an environment that has multiple acute care facilities competing for the same patients, providers and services,” the health system said. 

Williamson (W.Va.) Hospital  

Williamson Hospital filed for Chapter 11 bankruptcy in October and was operating on thin margins for months before shutting down on April 21. The 76-bed hospital said a drop in patient volume due to the COVID-19 pandemic forced it to close. CEO Gene Preston said the decline in patient volume was “too sudden and severe” for the hospital to sustain operations. 

Decatur County General Hospital (Parsons,

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Interview in der Financial Times: Krisenpapst Nouriel Roubini erwartet Weltwirtschaftskrise wegen Coronacvirus | Anti-Spiegel

27-02-20 07:45:00,

Der Krisenpophet Nouriel Roubini hat vor einer neuen, großen Weltwirtschaftskrise durch den Coronavirus gewarnt. Da der Spiegel den Artikel über sein Interview in den kostenpflichtigen Bereich gestellt hat, übersetze ich hier eine russische Meldung über Roubinis Interview.

Roubini ist weltbekannt geworden, weil er die Weltwirtschaftskrise von 2008 exakt vorausgesagt hat und seitdem wird aufmerksam zugehört, wenn er sich zu Wort meldet. Er hat zwar danach auch schon mal mit seinen Katastrophenprophezeiungen daneben gelegen, aber Gewicht sein Wort allemal. Er hat nun der Financial Times ein Interview gegeben und anscheinend auch dem Spiegel. Da beide Zeitungen die Interviews als kostenpflichtige Artikel veröffentlicht haben, übersetze ich eine Meldung des russischen Fernsehens über die Kernaussagen seines Interviews mit der Financial Times.

Beginn der Übersetzung:

Nouriel Roubini, der Wirtschaftsprofessor, der die globale Krise von 2008 vorhersagte, hat vor den falschen Vorstellungen der Welt über das Coronavirus gewarnt.

Roubini, der als Krisenprophet bekannt ist, behauptet, dass die Anleger zu ruhig und zuversichtlich sind, trotz des Ausverkaufs von Aktien, der im Januar begann, als die ersten Berichte über eine mögliche Coronavirus-Epidemie auftauchten.

Seiner Meinung nach steigt das Risiko einer Verlangsamung des Wachstums und sogar eines Rückgangs der Weltwirtschaft. Das würde zu Stagnation in verschiedenen Ländern, sinkenden Einkommen und einer weiteren globalen Krise führen.

„Die Investoren belügen sich selbst darüber, wie ernst der Ausbruch des Coronavirus sein wird. Trotz der großen Ausverkäufe an den Aktienmärkten in dieser Woche kommt das Schlimmste erst noch“, sagte Nouriel Roubini in einem Artikel in der Financial Times.

Viele Anleger sind auf einen Rückgang der Aktienindizes vorbereitet, aber ihrer Meinung nach ist es unwahrscheinlich, dass der Ausverkauf im Durchschnitt 10 Prozent übersteigen wird.

Händler und Investoren verlassen sich auf die Macht der Finanzaufsichtsbehörden, die Unterstützung der US-Notenbank Federal Reserve und anderer Zentralbanken auf der ganzen Welt, die, wenn nötig, billiges Geld zur Rettung der Wirtschaft bereitstellen werden.

Roubini glaubt nicht an einen baldigen Sieg über die Epidemie und glaubt nicht, dass die Ausbreitung des Coronavirus nach dem ersten Quartal abnehmen wird, wie es in China heißt.

Die Weltwirtschaft wird lange brauchen, um sich von dieser Epidemie zu erholen. Roubini nannte es einen Fehler zu erwarten, dass „die Politik schnell helfen werde“.

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Financial Expert: The End Game Is Unfolding Before Our Eyes – Activist Post

12-02-20 07:50:00,

By Spiro Skouras

On the heels of President Donald Trump’s annual State of the Union speech — where the president declared the US employment numbers, the stock market and the economy in general are doing better then ever! — a financial expert has come forward to provide his current State of the Union summary, and it is quite different that what we witnessed on Capitol Hill.

In this interview, Spiro is joined by financial expert Gregory Mannarino to discuss the true state of the economy and the current monetary/financial system, as we see the central banks manipulating the markets at all costs to prolong the next global financial collapse.

Mannarino pulls back the curtain and provides an inside look at how the system is rigged by the financial elite to create a nation of debt slaves, while providing solutions to avoid becoming another victim of the banksters.

To fully understand where we are at in history and what we can expect looking forward, as the world’s financial system hangs in the balance ready to be replaced by a new system of control, financial expert Greg Mannarino lays out the entire plan and the agenda behind the largest scam in history.


Gregory Mannarino’s YouTube Channel

Gregory Mannarino’s Website

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