BAILOUT FEVER
Once it starts it cannot be ended. Bailout one and you will have to bail out thousands. Hyperinflation cannot be avoided. Protect yourself with gold immediately.
AIG was Bear Stearns’ wastepaper basket for OTC derivatives.
The too small to consider will all be the property of the too big to fail as very few mega financial entities take birth.
AIG May Get $30 Billion in Additional U.S. Capital
By Hugh Son and Rebecca Christie
March 1 (Bloomberg) — American International Group Inc., the insurer deemed too important to fail, may get a commitment for as much as $30 billion in new government capital after a record quarterly loss, said two people familiar with the matter.
The insurer may also be allowed to make lower payments on government loans, said the people, who declined to be identified because there was no public announcement. New York-based AIG may forfeit part of stakes in its two largest non-U.S. life insurance divisions to lower the firm’s debt, the people said.
AIG, first saved from collapse in September with a package that grew to $150 billion, had to restructure its bailout after failing to sell enough units to repay the U.S. Firms including banks relied on AIG to back more than $300 billion of assets through derivative contracts as of Sept. 30, making the insurer a “systematically significant failing institution” that has to be propped up, according to the Treasury.
“The government has accepted all the downside with little chance of upside,” saidPhillip Phan, professor of management at the Johns Hopkins Carey Business School in Baltimore. “They are trying to protect the global financial system from a complete meltdown.”
AIG, which agreed in September to turn over an 80 percent stake to the government, is set to announce a fourth-quarter loss of about $60 billion tomorrow, according to three people familiar with the matter. The company’s board was scheduled to meet today to vote on the revised bailout, according to two other people familiar with the matter.
Jim Sinclair’s Commentary
Are you still dealing with internet financial sites?
That is the exact opposite of my advice to distance yourself from financial agents.
A gold certificate is not gold. Paper gold is not gold.
"As we can see the growth of traffic begins from the time when the first notifications appeared. The users started to withdraw money from their accounts that could also caused the drop in exchangerates. As you remember the similar situation was in the beginning of e-gold crisis. That time the exchange rate of e-gold has reached 50-60%, and those who managed to get rid of e-gold currencywere in the money. So, we can say that today’s liquidity of LR is similar to the one e-gold had in the very beginning of its crisis."
Liberty Reserve is down for maintenance: users are in panic, what’s going on?
March 1, 2009 – 11:08pm | author: ayny
These days something really strange happens to one of the most popular payment processors Liberty Reserve. Being created several years ago this online payment system has become ‘number one’ for theonline investment industry. There is hardly any investment project that doesn’t use LR as a payment gateway, and the latest event around it became a real nightmare for them. Liberty Reserve is stable for two weeks.
Everything started in the second half of February. The site of the company became unavailable on February 18 without any preliminary notifications however in few hours everything was fixed. The next outage happened on February 21 though this time LR was posted a notice in their blog:
“We are currently installing updates that became available just recently for our routers. This procedure should approximately take not more than 5-9 hours, which also includes the restarting of allhardware and testing. We sincerely apologize for this unplanned event, but keeping our hardware up to date is one of the highest priorities as it assures the most secure operation.”
When the site came online some users faced the problems with login as system didn’t accept the passwords. Later on February 22 LR has posted another announcement: “We are going through final steps of testing of all updates implemented earlier. During this stage some of you may not be able to temporarily login to your account, while changes are still being tested and analyzed for maximum performance…”
Jim Sinclair’s Commentary
How can Israel live with this development?
Iran’s uranium ‘enough for bomb’
Iran has enough nuclear material to build a bomb, the United States’ most senior military commander has said.
"We think they do, quite frankly," Adm Mike Mullen, chairman of the US Joint Chiefs of Staff, told CNN.
"And Iran having a nuclear weapon, I’ve believed for a long time, is a very, very bad outcome for the region and for the world," he said.
Iran says its nuclear programme is entirely peaceful, but the West suspects it is seeking nuclear weapons.
‘One bomb’ possible
A report issued by the International Atomic Energy Agency (IAEA) two weeks ago said Tehran had built up a stockpile of fissile nuclear material. This raised concerns in the West that Iran might have understated by one-third how much uranium it has enriched.
The IAEA report showed a major increase in Iran’s reported stockpile of low-enriched uranium (LEU) since November to 1,010 kg.
Some physicists believe this stockpile is enough to be converted into enough highly enriched uranium to build one bomb.
Jim Sinclair’s Commentary
Forewarned is forearmed
Be careful of internet gold offerings regardless of appearances. They are ALL frauds.
All that glitters is not gold
STANLEY SENEVIRATNE Kurunegala north group corr.
A five member gang operating islandwide were taken into custody by Habarana police while attempting to sell a stock of fake gold nuggets early yesterday.
The modus operandi of the gang had been to sell the fake gold nuggets to a wealthy merchant claiming they had discovered the treasure.
Inquiries revealed that the suspects had been carrying on this racket over a long period and had employed over 180 others as their agents and sub agents in many parts of the country.
Police said the brain behind the racket was among the suspects already in custody.
Information also revealed that the suspects had cheated several leading businessmen in Kurunegala, Dambulla, Pelmadulla, Ratnapura, Kanthale, Anuradhapura, Polonnaruwa, Hingurakgoda, Mahiyangana and Colombo.
Jim Sinclair’s Commentary
Pakistan moving towards center stage.
Obama team lays out new Afghan-Pakistan approach
WASHINGTON (AFP) — After setting a deadline to pull US forces from Iraq, President Barack Obama is shifting gears quickly to Afghanistan and Pakistan as he lays out a broad, regional approach to fighting extremism.
The Obama administration held three days of talks last week with the foreign ministers of Afghanistan and Pakistan and said it would turn it into a regular dialogue to chart a new course in the "war on terror."
Obama has vowed to put a top priority on bringing stability to the lawless and rugged terrain between the South Asian neighbors — the home base for Taliban and Al-Qaeda militants including, most presume, Osama bin Laden.
Obama, who Friday announced a timeline to end the Iraq mission, is sending 17,000 more US troops to Afghanistan. But he said the United States needed an effort broader than just hunting and killing militants.
"We’ve been thinking very militarily, but we haven’t been as effective in thinking diplomatically, we haven’t been thinking effectively around the development side of the equation," Obama said Friday on PBS television.
"Obviously, we haven’t been thinking regionally, recognizing that Afghanistan is actually an Afghanistan-Pakistan problem, because right now the militants… are often times coming over the border from Pakistan," he said.
All three sides hailed the openness of the Washington talks, with Pakistani Foreign Minister Shah Mehmood Qureshi saying that the new administration compared with president George W. Bush’s is "really willing to listen to us."
Jim Sinclair’s Commentary
Here comes the shock of people’s lifetime. You can not contribute what you do not have. The valuation of Pension Assets is another sick cartoon.
Here comes more bailouts via a government Pension Guarantee scheme. Hyperinflation cannot be avoided.
Protect yourselves.
Pension bombs going off
By: Paul Merrion March 02, 2009
Exploding pension fund shortfalls are blowing billion-dollar holes in the balance sheets of some of the Chicago area’s biggest companies, forcing them to make huge contributions to retirement plans at a time when cash flow and credit are already under stress.
Boeing Co.’s shareholder equity is now $1.2 billion in the hole thanks to an $8.4-billion gap between its pension assets and the projected cost of its obligations for 2008. At the end of 2007, Boeing had a $4.7-billion pension surplus. If its investments don’t turn around, the Chicago-based aerospace giant will have to quadruple annual contributions to its plan to about $2 billion by 2011.
Stock market losses also pounded pension funds at Abbott Laboratories Inc., Caterpillar Inc. and Exelon Corp., with others sure to emerge as companies file their annual financial reports with the Securities and Exchange Commission in coming weeks.
Jim Sinclair’s Commentary
Armed forces prepare to make War on British citizens in Britain.
MI5 ALERT ON BANK RIOTS
By Geraint Jones
March 1,2009
TOP secret contingency plans have been drawn up to counter the threat posed by a “summer of discontent” in Britain.
The “double-whammy” of the worst economic crisis in living memory and a motley crew of political extremists determined to stir up civil disorder has led to the extraordinary step of the Army being put on standby.
MI5 and Special Branch are targeting activists they fear could inflame anger over job losses and payouts to failed
