The comments came a day after the federal government, Quebec and Ontario agreed to an eleventh hour request from a committee spearheading the restructuring to put up nearly $10-billion to meet potential margin calls on the assets underlying the frozen notes. [3] "Justice Colin Campbell said it wouldn’t be appropriate for him to make such an order. He tried to calm the waters, noting that he didn’t interpret Mr. Howard’s comments to be a threat." [4]– but see below [this added about 5:15PM Pacific Time Friday] Canada’s "Big P" ABCP bailout is about 3 times bigger than the "Big 3"…
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The reputation of Professor Scott Nelson’s recent article on The Panic of 1873 (links and discussion at this Doom post; further discussion here [1] ) continues to expand. Click the Pic to go to this slightly garbled account.[2] Environmentalism journalist Kaushik Das Gupta provides an interesting summary of Nelson’s theory for his Indian audience. He’s using this cover from a 1873 Harper’s issue, which represents President U.S. Grant rescuing "America" from the end result of that era’s housing bubble: "I am glad you are unhurt. Houses in this street have been on false bases for long time." Clearly our expectations…
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It’s Friday, and it’s clear that the bursting of the housing bubble has brought wider problems than most people ever thought possible.  Frighteningly, these problems are being used as an excuse for the government to contemplate mobilizing troops against U.S. citizens on American soil: [Thanks L!] A new report by the U.S. Army War College talks about the possibility of Pentagon resources and troops being used should the economic crisis lead to civil unrest, such as protests against businesses and government or runs on beleaguered banks. “Widespread civil violence inside the United States would force the defense establishment to reorient…
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Yet surely I’m not the only person to ask the obvious question: How different, really, is Mr. Madoff’s tale from the story of the investment industry as a whole? [4] [NOTE: this post originally didn't have a letters-of-fire quote, and then that one dropped in our laps.  Thanks Paul ] It’s beginning to look like the Madoff Ponzi was something of an open secret. Perhaps (and this is pure speculation) the more sophisticated investors then saw their risk as purely political, with the strength of their investment depending on Madoff’s nearly unassailable person. This would be analogous to the strength…
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Old Doom friend Rodrigue Tremblay is back with another thoughtful article. Doomers will enjoy his perspective as he tries to make sense of the latest moves taken by America’s central bank. . . . .   A Most Desperate Move by the Fed by Rodrigue Tremblay   "In a crisis, discount and discount heavily." Walter Bagehot (1826-1877), British economist "I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power (of money) should be taken away from the banks…
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