Markets face major crash if US bail-out plan collapses

There will be a depression anyway, but if the bailout “succeeds” there will be a complete meltdown in the not too distant future. Again the elite is pressing the fear button.
_____________________________________________________________________________


World markets depend on Paulson’s plan Photo: GETTY

London shares could lose a fifth of their value and the money market faces collapse unless US politicians succeed with their financial bail-out plan, it has been warned.

A leading investor predicted that the FTSE 100 could drop by as much as 1,000 points on Monday if Treasury Secretary Hank Paulson’s $700bn (£380bn) plan fails. Such a fall would come close to matching the stock market crash of 1987.

The warning came as markets lurched their way to the end of another fraught week amid fears that the White House rescue operation could be derailed in Congress by conservative Republicans.

Read moreMarkets face major crash if US bail-out plan collapses

UK: COST OF BREAD AND BUTTER UP 43%


INCREASE: Bread price has soared

THE cost of basic foods has soared by nearly 10 times the official inflation rate.

A loaf of sliced white bread and a packet of butter now add up to £2.33 – a 43 per cent rise from £1.62 last year.

Eggs are up 27 per cent at £2.90 a dozen, cheddar cheese is 25 per cent dearer at £7.04 a kilo and best mince is up 20 per cent to £5.80 a kilo.

Read moreUK: COST OF BREAD AND BUTTER UP 43%

Share sharks made £190m profits from HBOS by trading two minutes BEFORE BBC announced Lloyds TSB rescue


Speculators made a £190million profit from HBoS shares after details of takeover talks with Lloyds TSB were announced on the BBC

City watchdogs are expected to investigate how speculators made a £190million profit from HBOS shares in a frenzied two minutes of trading immediately before news of the bank’s rescue was made public.

Details of the takeover talks between the bank and Lloyds TSB were controversially announced by the BBC’s business editor Robert Peston on Wednesday morning.

Before his 9am broadcast, HBOS shares had dipped to a low of 88p. But his scoop sent the price rocketing to 215p in the space of an hour, giving the mystery buyers huge instant profits.

In just two deals between 8.57pm and 8.58pm, buyers snapped up more than 20million HBOS shares at 96p each, netting millions of pounds in profit.

Read moreShare sharks made £190m profits from HBOS by trading two minutes BEFORE BBC announced Lloyds TSB rescue

UK: Taxes will soar in credit crisis


An office worker looks at a screen showing trading on the FTSE 100 index

TAXPAYERS in Britain face up to 5p in the pound in extra taxes because of the credit crunch created by the banks, leading economists have warned.

After a week of unprecedented financial turmoil, they predict that government borrowing is about to surge as the Treasury’s tax take is slashed by a slump in earnings from the City and the downturn.

Leading forecasters say the government will soon be forced to borrow as much as £100 billion a year, giving Britain easily the biggest budget deficit of any western country.

Any tax rises would come on top of increases imposed by Gordon Brown when he was chancellor. He repeatedly raised indirect “stealth” taxes while leaving income tax unchanged. Taxes went up by 3% of national income, equivalent to more than 10p on the basic rate of income tax.

The warning coincides with news that American executives of the failed Lehman Brothers bank, parts of which were taken over by Barclays last week, will still receive millions in bonuses.

Read moreUK: Taxes will soar in credit crisis

Fed, ECB, Bank of Japan Lead Global Plan to Pump $247 Billion Into Markets

Sept. 18 (Bloomberg) — The Federal Reserve almost quadrupled the amount of dollars central banks can auction around the world to $247 billion in a coordinated bid to ease the worst crisis facing financial markets since the 1920s.

The Fed increased the amount of dollars that the European Central Bank, the Bank of Japan and other counterparts can offer from $67 billion “to address the continued elevated pressures in U.S. dollar short-term funding markets.” The Bank of England, the Bank of Canada and the Swiss National Bank also participated.

Policy makers have struggled to revive confidence in markets this week as investors stockpiled money on concern more financial institutions would fail after the bankruptcy of Lehman Brothers Holdings Inc. and the U.S. government bailout of American International Group Inc. The cost to hedge against losses on U.S. government debt climbed to a record yesterday.

“There’s a complete lack of faith in the markets,” said Jim O’Neill, chief economist at Goldman Sachs Group Inc. in London. “There’s a lot of cash hoarding and people losing trust in banks, so the central banks are acting to relieve that. This might not be the last time they have to act.”

Read moreFed, ECB, Bank of Japan Lead Global Plan to Pump $247 Billion Into Markets

Home Office: Car journeys to be stored on a national database for five years


CCTV cameras, converted to read ANPR data, capturing people’s movement. Photograph: Peter Macdiarmid/Reuters

The police are to expand a car surveillance operation that will allow them to record and store details of millions of daily journeys for up to five years, the Guardian has learned.


Paul Lewis on police plans to store car surveillance records Link to this audio

A national network of roadside cameras will be able to “read” 50m licence plates a day, enabling officers to reconstruct the journeys of motorists.

Police have been encouraged to “fully and strategically exploit” the database, which is already recording the whereabouts of 10 million drivers a day, during investigations ranging from counter-terrorism to low-level crime.

But it has raised concerns from civil rights campaigners, who question whether the details should be kept for so long, and want clearer guidance on who might have access to the material.

Read moreHome Office: Car journeys to be stored on a national database for five years

Lehman Files Biggest Bankruptcy Case in History

Sept. 15 (Bloomberg) — Lehman Brothers Holdings Inc., the fourth-largest U.S. investment bank, succumbed to the subprime mortgage crisis it helped create in the biggest bankruptcy filing in history.

The 158-year-old firm, which survived railroad bankruptcies of the 1800s, the Great Depression in the 1930s and the collapse of Long-Term Capital Management a decade ago, filed a Chapter 11 petition with U.S. Bankruptcy Court in Manhattan today. The collapse of Lehman, which listed more than $613 billion of debt, dwarfs WorldCom Inc.’s insolvency in 2002 and Drexel Burnham Lambert’s failure in 1990.

Read moreLehman Files Biggest Bankruptcy Case in History

Jobless set to top two million as the UK economy heads for meltdown


A JobCentre office

The true scale of the jobs disaster facing Britain is revealed today as experts issue dire warnings that up to half a million workers will lose their jobs over the next two years, as companies cut costs and scale back investment plans to survive the economic downturn.

Official figures are widely expected to reveal this week that the number of people out of work and claiming benefits increased for a seventh successive month in August.

Finance companies based in London’s Square Mile have already laid off thousands of workers since the US mortgage crisis unleashed chaos in the world’s markets last summer; and the 5,000 UK-based staff at crisis-hit investment bank Lehman Brothers are awaiting news this weekend about how many of them will be made redundant.

Read moreJobless set to top two million as the UK economy heads for meltdown

RAF radar chief reveals his incredible 1971 UFO fleet sighting

London, September 13 : A sexagenarian RAF expert claims that the Ministry of Defence in Britain asked him to keep quiet after he tracked a whole fleet of “spaceships” on military radar in 1971.

Sixty Wing Commander Alan Turner, 64, who was a chief operator of the RAF’s radar system for 29 years, said that all his colleagues were surprised to see 35 super-fast vessels appear on their screens.

Related article: Apollo 14 astronaut claims aliens HAVE made contact – but it has been covered up for 60 years

He said that the craft were equally spaced and shot from 3,000ft to 60,000ft at almost 300mph.

He revealed that every UFO would suddenly vanish from radar after a few seconds, and be replaced by an identical vessel moments later.

Read moreRAF radar chief reveals his incredible 1971 UFO fleet sighting

Pakistan: Army ordered to hit back


Corps commanders discuss latest US strategy

RAWALPINDI: The Pakistan Army has been ordered to retaliate against any action by foreign troops inside the country, Geo News quoted ISPR spokesman Maj Gen Athar Abbas as saying on Thursday night.

Shakil Shaikh adds from Islamabad: Pakistan’s military commanders resolved to defend the country’s borders without allowing any external forces to conduct operations inside Pakistan.

Read morePakistan: Army ordered to hit back