U.S. banks in just 2 weeks 30% less
Saturday, February 21, 2009
The new U.S. president Obama promised "change" is seems to exist, albeit that he does exactly the same as George Bush, but in a much faster pace. Under Bush lost the banks in the U.S. 30% of their value and Obama, but the last, the banks are significantly less time required for only 2 weeks.
A clearer signal that the financial markets no confidence in the policies of the new government may soon not be given. A loss of 30%, in the very sector which Obama promised that it would 'save'. Nothing, but nothing of Obama's goals with measures realized. It remains only to much worse.
Of course the current crisis is only partly to the credit of the new president to write. But Obama promised during his campaign that he disastrous eight years of George Bush on financial undo it. The opposite is now the case.
How long can this go on? According to some analysts, the shares of all banks are soon to NUL. In other words, they will no longer worth it. The current trend seems unmistakable that direction. Many shares in the last two weeks even halved in value.
The new government in Washington can not continue to maintain its ability for the banks new capital requirements, if the market shows just the opposite, namely that the shares only sink deeper and on average only a handful of dollars worth. Again, the total incompetent policies of Obama and his Minister of Finance, Timothy Geithner, has led to delete 30% of the value of U.S. banks, in less than 2 weeks. The Humor of the Bush administration in this area only in superlatives continued.
$ 28 trillion CDSwaps
Meanwhile the U.S. tries, along with Great Britain and the EU, to $ 28 trillion in Credit Default Swaps to 'regulate'. The aim would be to a common standard to speak to this market now better under control.
This would have happened last year should be. During the first phase of the financial crisis in 2008 was promised to end the year a full plan would be ready for the huge CDSwaps market to regulate. Why is it still not happened?
The answer is as simple as disconcerting because this is not possible, because this CDSwaps-contracts in the possession of people and agencies that (almost) Zero capital to all these CDSwaps to cover. The $ 28 trillion that is now 'controlled' should be a few billions more if the total GNP of the U.S., the UK and the EU together. Remember this is probably more than $ 60 trillion CDSwapsuit are likely to fall and that the total derivatives market more than $ 1.1 Billiard dollar large - 19 x higher than the value of the entire world economy!
The previously mentioned $ 28 trillion is just the tip of a rapidly melting iceberg razen. Or rather a huge, empty balloon term. Because if they become completely worthless contracts must be settled, then plop the banks immediately apart.
The Times in London writes that Minister of Finance Geithner price has changed, because he has found that there is simply not enough money for all the 'toxic assets' from banks to buy.
The big question now is how long the governments in the U.S., Europe, Japan and elsewhere in the world, yet continue to play puppet. The global financial system is bankrupt. Point. It is pointless to be here in the same way even a euro or dollar to stabbing - let alone the billions already have been smoke, and the inevitable collapse not only have delayed, but also much worse will make.
Source: xander news