The fed & gov. abuse of power &

screw the pooch world economy

Investigators say the Fed threatened bank CEO
June 10, 2009 AP
Congressional investigators say they have seen internal documents that prove the Federal Reserve threatened to force the ouster of Bank of America CEO Kenneth Lewis if he did not...

CEO says gov't pressured bank to buy Merrill Lynch
June 11, 2009 AP
Bank of America Chief Executive Officer Kenneth Lewis says his bank decided to buy Merrill Lynch partly because it was pressured to do so by the Federal Reserve. Lewis says the...

House chairman questions Bank of America bailout
June 11, 2009 AP
The top Democrat on a House investigative committee says internal e-mails by Federal Reserve employees raise serious questions about $20 billion in government aid provided to...

Brazil 1Q GDP Down 0. 8%
June 09, 2009 PR Newswire
Finance Minister Guido Mantega sees economy returning to normal levels BRASILIA, Brazil, June 9/PRNewswire/-- The Brazilian government announced today that...

Finnish economy drops by 2. 7 percent in Q1
June 09, 2009 AFP
Finland's economy contracted 2.7 percent in the first quarter of 2009 compared to the fourth quarter of 2008, when the economy shrank by 2.1 percent, official data has shown,...

The Fake Recovery
Posted by Edward Harrison on 13 April 2009 at 10:12 am
Why ‘Fake’? This is a fake recovery because the underlying systemic issues in the financial sector are being papered over through various mechanisms designed to surreptitiously recapitalize banks while monetary and fiscal stimulus induces a rebound before many banks’ inherent insolvency becomes a problem. This means the banking system will remain weak even after recovery takes hold. The likely result of the weak system will be a relapse into a depression-like circumstances once the temporary salve of stimulus has worn off. Note that this does not preclude stocks from large rallies or a new bull market from forming because as unsustainable as the recovery may be, it will be a recovery nonetheless.