Hold onto your hats.
September 18, 2007
U.S. Banks Brace for Storm Surge as Dollar and Credit System Reel
By MIKE WHITNEY
By now, you’ve probably seen the photos of the angry customers queued up outside of Northern Rock Bank waiting to withdraw their money. This is the first big run on a British bank in over a century. It’s lost an eighth of its deposits in three days. The pictures are headline news in the U.K. but have been stuck on the back pages of U.S. newspapers. The reason for this is obvious. The same Force 5 economic-hurricane that just touched ground in Great Britain is headed for America and gaining strength on the way.
On Monday night, desperately trying to stave off a wider panic, the British government issued an emergency pledge to Northern Rock savers that their money
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Either way, it could be an unkind cut
By Henry C K Liu
Strong employment had been a key benefit of the liquidity boom in the United States even though wages had not been rising enough to keep up with asset prices. But news on slow growth of employment for July was an ominous sign that the liquidity boom was ending.
Economists know that employment data are a lagging indictor, showing only the effects of previous periods. Yet official
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Economy at `Scariest’ Since Depression, Says Penner (Update1)
By David M. Levitt and Bryan Keogh
Sept. 18 (Bloomberg) — The world economy “is probably at its scariest point since the Depression” as fallout from the U.S. subprime mortgage crisis crimps access to credit, said Ethan Penner, a pioneer of the $600 billion commercial mortgage-backed securities market in the early 1990s.
“We’re probably at the closest point to a big meltdown, a depression-type meltdown than we have been in our lives,” said Penner, 46, now a principal at real estate fund management firm Lubert-Adler Partners LP in Philadelphia, during a speech at a Real Estate Media Inc. conference in New York.
The U.S. housing market is an “unmitigated disaster”