Bernanke Finally Reveals, In One Word, Why The Financial System Crashed: ‘Overconfidence’

Bernanke Finally Reveals, In One Word, Why The Financial System Crashed (ZeroHedge, March 4, 2014):

Now that Ben Bernanke is no longer the head of the Fed, he can finally tell the truth about what caused the financial crash. At least that’s what a packed auditorium of over 1000 people as part of the financial conference staged by National Bank of Abu Dhabi, the UAE’s largest bank, was hoping for earlier today when they paid an exorbitant amount of money to hear the former chairman talk.Bernanke confirmed as much when he said he could now speak more freely about the crisis than he could while at the Fed – “I can say whatever I want.”

So what was the reason, according to the man who was easily the most powerful person in the world for nearly a decade?

Ready?

“Overconfidence.” (no, not “weather”)

Bernanke prayer

Yup. That’s it.

The United States became “overconfident”, he said of the period before the September 2008 collapse of U.S. investment bank Lehman Brothers. That triggered a crash from which parts of the world, including the U.S. economy, have not fully recovered.

“This is going to sound very obvious but the first thing we learned is that the U.S. is not invulnerable to financial crises,” Bernanke said.

Actually what is going to sound even more obvious, is that subprime was not contained.

Read moreBernanke Finally Reveals, In One Word, Why The Financial System Crashed: ‘Overconfidence’

Baltic Dry Continues Collapse – Worst Slide Since Financial Crisis

Baltic Dry Continues Collapse – Worst Slide Since Financial Crisis (ZeroHedge, Jan 14, 2014):

Despite ‘blaming’ the drop in the cost of dry bulk shipping on Colombian coal restrictions, it seems increasingly clear that the 40% collapse in the Baltic Dry Index since the start of the year is more than just that. While this is the worst start to a year in over 30 years, the scale of this meltdown is only matched by the total devastation that occurred in Q3 2008. Of course, the mainstream media will continue to ignore this dour index until it decides to rise once again, but for now, 9 days in a row of plunging prices is yet another canary in the global trade coalmine and suggests what inventory stacking that occurred in Q3/4 2013 is anything but sustained.

Baltic Dry costs are the lowest in 4 months, down 40% for the start of the year, and the worst start to a year in over 30 years…

Baltic Dry Index-BDIY-Collapse

As we noted yesterday…

Of course, we are sure the ‘lead’ that the Baltic Dry seems to have over global macro will be quickly ignored…

Baltic Dry Index-BDIY-Collapse-2

Charts: Bloomberg

Prof. Michel Chossudovsky: Shutdown Of US Govt & ‘Debt Default’: Dress Rehearsal For Privatization Of Federal State System?


The U.S. Capitol looms in the background of a sign on the National Mall reminding visitors of the closures to all national parks due to the federal government shutdown in Washington October 3, 2013. (Reuters/Kevin Lamarque)

Michel Chossudovsky is an award-winning author, professor of economics, founder and director of the Centre for Research on Globalization, Montreal and editor of the globalresearch.ca website.

Shutdown of US govt & ‘debt default’: Dress rehearsal for privatization of federal state system? (RT, Oct 15, 2013):

By Michel Chossudovsky

The ‘shutdown’ of the US government and the financial climax associated with a deadline date, leading to a possible ‘debt default’ by the federal government, is a money-making undertaking for Wall Street.

Several overlapping political and economic agendas are unfolding. Is the shutdown – implying the furloughing of tens of thousands of public employees – a dress rehearsal for the eventual privatization of important components of the federal state system?

A staged default, bankruptcy and privatization is occurring in Detroit (with the active support of the Obama administration), whereby large corporations become the owners of municipal assets and infrastructure.

The important question: could a process of ‘state bankruptcy’, which is currently afflicting local level governments across the land, realistically occur in the case of the central government of the United States of America?

This is not a hypothetical question. A large number of developing countries under the brunt of  IMF ‘economic medicine’ were ordered by their external creditors to dismantle the state apparatus,  fire millions of public sector workers as well as privatize state assets. The IMF’s Structural Adjustment Program (SAP) has also been applied in several European countries.

Read moreProf. Michel Chossudovsky: Shutdown Of US Govt & ‘Debt Default’: Dress Rehearsal For Privatization Of Federal State System?

Red Cross Launches Emergency Food Aid Plan In The UK … First Time Since World War II

Red Cross Launches Emergency Food Aid Plan in the UK – First Time Since World War II (Liberty Blitzkrieg, Oct 12, 2013):

Welcome to the global recovery folks. A recovery that is so strong in the UK, the Red Cross has been called in to provide food aid for the first time since World War II. Nothing spells happy days are here again like that sort of news.

Oh, didn’t participate in the global recovery? No worries, oligarchs have got you covered and will happily offer you a piece of bread in between flat purchases in the City of London so that you remain quietly and apathetically planted squarely in front of the television . The “recovery” was and is a gigantic heist. Nothing more, nothing less.

From the Independent:

The Red Cross will this winter start collecting and distributing food aid to the needy in Britain for the first time since the Second World War, as welfare cuts and the economic downturn send soaring numbers of people to soup kitchens and food banks across Europe.

In what could be the start of an increased role in Britain for the Geneva-based charity best known for its work in disaster zones, its volunteers will be mobilised to go into supermarkets across the country at the end of November and ask shoppers to donate dry goods. The British Red Cross will then help FareShare, a charity working with the Trussell Trust and Tesco, distribute the packets and tins to food banks nationwide.

Britain is just one of many countries where families are struggling to put food on the table. In a report released today into the devastating humanitarian impact of Europe’s financial  crisis, the Red Cross recorded a 75 per cent increase in the number of people relying on their food aid over the last three years. At least 43 million people across the Continent are not getting enough to eat each day and 120 million are at risk of poverty.

Read moreRed Cross Launches Emergency Food Aid Plan In The UK … First Time Since World War II

It Is Happening Again: 18 Similarities Between The Last Financial Crisis And Today

It Is Happening Again: 18 Similarities Between The Last Financial Crisis And Today (Economic Collapse, July 25, 2013):

If our leaders could have recognized the signs ahead of time, do you think that they could have prevented the financial crisis of 2008?  That is a very timely question, because so many of the warning signs that we saw just before and during the last financial crisis are popping up again.  Many of the things that are happening right now in the stock market, the bond market, the real estate market and in the overall economic data are eerily similar to what we witnessed back in 2008 and 2009.  It is almost as if we are being forced to watch some kind of a perverse replay of previous events, only this time our economy and our financial system are much weaker than they were the last time around.  So will we be able to handle a financial crash as bad as we experienced back in 2008?  What if it is even worse this time?  Considering the fact that we have been through this kind of thing before, you would think that our leaders would be feverishly trying to keep it from happening again and the American people would be rapidly preparing to weather the coming storm.  Sadly, none of that is happening.  It is almost as if they cannot even see the disaster that is staring them right in the face.  But without a doubt, disaster is coming.

The following are 18 similarities between the last financial crisis and today…

Read moreIt Is Happening Again: 18 Similarities Between The Last Financial Crisis And Today

AND NOW: Cyprus Jailing People For Debt!!!

H/t reader M.G.:

“Adding to this mess, here is a story from Cyprus. They are jailing people for debt. Didn’t the 19th century teach these clowns anything? How can people pay if they are in jail?
Here is the link. Insane.”

You can’t make this stuff up!


Rise in debtors adds to prison overcrowding (Cyprus Mail, July 23, 2013):

THE ALREADY over-full Nicosia Central Prisons is becoming even more crowded as the financial crisis worsens and more people are being jailed for non-payment of fines and other debts.

Prison Governor Giorgos Tryfonides told the Cyprus News Agency (CNA) that efforts were being made to help such convicts pay off their debts in instalments.

“We are trying our best to make plans for payment of debt so an arrangement can be made with the attorney-general to postpone any punishment as long as the instalment is accepted by the plaintiff,” he said.

Due to the crisis, the number of people facing jail for financial reasons is on the rise compared to other years, Tryfonides said, adding on certain days up to five people might be imprisoned for similar offences.

Read moreAND NOW: Cyprus Jailing People For Debt!!!