Business News
Brown urges 'concerted international approach' on bank rescue
Oct 9, 2008, 15:16 GMT
British Prime Minister Gordon Brown leaves Downing Street for parliament in London, Britain, 08 October 2008. The UK government announced details of a rescue package for the banking system worth at least 50bn pounds ($88bn) 08 October. EPA/ANDY RAIN
London/Brussels - British Prime Minister Gordon Brown has urged fellow-European leaders to adopt key aspects of Britain's multi-billion-pound banking rescue package in a 'concerted international approach' to tackle the current global financial crisis.
In a letter to French President Nicolas Sarkozy, holder of the EU's rotating presidency, of which a copy was sent to the EU Commission and member governments, Brown outlined the pillars of the British scheme agreed Wednesday.
In particular, Brown suggested that other European nations should follow Britain's example and extend guarantees for inter-bank lending which has dried up with the credit squeeze, according to the letter.
'I wanted particularly to draw your attention to the last of these steps, because it is an area where a concerted international approach could have a very powerful effect,' Brown wrote in relation to the loan guarantees.
Under the British plan, the government is providing guarantees of up to 250 billion pounds (437 billion dollars) for such loans to cover 'new and medium-term debt,' in addition to extending by 200 billion pounds the liquidity of the Bank of England and injecting 50 billion pounds in cash into banks destabilized by the current crisis.
A concerted approach was also necessary to co-ordinate national schemes and strengthen supervision and regulation, said the letter.
The British proposals are expected to be discussed at next week's European Union summit and at a meeting of Group of Seven (G7) members in Washington on Friday, government officials in London said.
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Older Talkback
page: 1
So, here is the final analysis:
The last time the stock market was valued correctly was around 1960. A legitimate long term conservative rate of return (without taxes) would be 5%, which doubles principle about every 15 years. That means that in the year 2005 a conservative money manager would expect a Dow index of 4920, especially considering dividend distributions.
A Dow of 9000 is absurd and fraudulent. On July 2007 the Dow was at about 14,000 which is obscene. The Treasury and the President are financial kooks who are conning people into believing money grows on trees.
Wake me up when the Dow drops below, say 7,000.
The Dow is on its way - nearing 8500 tonight.
The US Government is now considering capital injection (effectively part nationalisation) of the banks.
Have a nice day
But one has to be intelligent and not alcoholic druggy Bush and greediest man of the world mr. cheney, to learn from history.
THE OBSESSED BUSH AND CHENEY TEAM CANNOT SEE THE LIGHT.
The blood of the innocent does not go without results. The west has to disintegrate into nothing. Saudie money or anything else is not going to save them. The rulers in Muslim lands have to reach their end point, and it is coming close to it.
'The US Government is now considering capital injection'
The US Government has always been the worse investor in history. They never invest for profit, only for loss.
Take the health system for example: Any sane person would slash and burn the tobacco industry and lock people who smoke up in jail until their addiction is contained. But, Nooooh the feds don't do that. Instead they support the tobacco growers and fund the risk of smoker's addiction via medicare benefits.
The U.S. would have NO energy crisis, NO healthcare crisis, NO financial crisis if only the feds could contain their addiction to debt spending and reel in destructive and expensive behavior.
So, be it. The time for justice and honesty has finally come.
All the so called finance experts in banks and government have been richly rewarded for ruining the economy,now they are to be further enriched putting it right.
They should be held accountable for their actions ,have their ill gotten gains confiscated,the funds thus raised should be used to prop up the banks which these gamblers have so nearly destroyed.
page: 1
lanceOct 9th, 2008 - 17:44:25
Step one in any rescue package:
Rescue citizens from con artists:
Give a world court jurisdiction for handling business and financial fraud and give stiff penalties including fees equivalent to con artist's net worth and upto 20 years in jail, say one year for each one million dollars of incorrect and non-public valuation techniques.
First in line for prosecution: President Bush for trying to con people into accepting a trillion dollars of junk assets. That would be 100,000 years in jail.
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