By Ambrose Evans-Pritchard
Telegraph
Last Updated: 8:37PM BST 06 Oct 2008
We face extreme danger. Unless there is immediate intervention on every front by all the major powers acting in concert, we risk a disintegration of global finance within days. Nobody will be spared, unless they own gold bars.
Investors will learn today whether the Paulson bail-out – fattened to $850bn (£480bn) by Congress – can begin to halt the death spiral in the credit system. So far, the response looks terrible.
Germany is now in the hot seat. The collapse of a rescue deal for Hypo Real Estate on Saturday threatens a €400bn (£311bn) bankruptcy that nearly matches the Lehman Brothers debacle for sheer scale.
[…]
During the past week, we have tipped over the edge, into the middle of the abyss. Systemic collapse is in full train. The Netherlands has just rushed through a second, more sweeping nationalisation of Fortis. Ireland and Greece have had to rescue all their banks. Iceland is facing an Argentine denouement.
The US commercial paper market is closed. It shrank $95bn last week, and has lost $208bn in three weeks. The interbank lending market has seized up. There are almost no bids. It is a ghost market. Healthy companies cannot roll over debt. Some will have to sack staff today to stave off default.
[…]
via Germany takes hot seat as Europe falls into the abyss – Telegraph.
h/t:amnesty4AWOL
see
James K. Galbraith: The Predator State
The End of American Hegemony By Paul Craig Roberts
French Premier Francois Fillon: We’re on “the edge of the abyss” By Mike Whitney
Naomi Wolf: Give Me Liberty – A coup has taken place! (must-see video)
Bill Moyers Journal: Emma Coleman Jordan on the Bailout
Ralph Nader: Commercial Greed Knows No Limits + Obama Will Become A War Criminal!
