Where's the next Dubai? - Crisis of wild robber war capitalism

aid agencies like the IMF and the European Union have provided emergency funding to limit the depth of the economic downturns in troubled nations such as Hungary, Ukraine and Latvia. The IMF said in September it has made $163 billion of lending commitments since the collapse of Lehman Brothers.

Where's the next Dubai? - Dec. 1, 2009

Inflation a Risk Without Foreign Debt Buyers: Robertson - Economy * US * News * Story - CNBC.com

US May Face 'Armageddon' If China, Japan Don't Buy Debt.

US is too dependent on Japan and China buying up the country's debt and could face severe economic problems if that stops. We could see 15-20% inflation.

The only way to avoid the problem, he said, is to "grow and save our way out of it."

The U.S. has to quit spending, cut back, start saving, and scale backward

Inflation a Risk Without Foreign Debt Buyers: Robertson - Economy * US * News * Story - CNBC.com

Russia’s super-rich feel the squeeze - many oligarchy capitalists lost up to 90% in the present financial crisis.

Russian oligarchy capitalism, worth of people with at least $1 bill - $450 billion in 2008, shrunk in crisis to $107 billion in 09. Alekperov, Lukoil, $7.6 bill, Abramovich, Chelsea, $2.78 bill, Deripaska lost 90%, $40 bil to $5 bill. Finans magazine.

Children of Russia’s super-rich feel the squeeze - Times Online

Stunning admission by pres Obama at G20 in London - USA no more a rich nation! No more world economic leader! USA uz ne bohatou zemi? Historic.

The president cautioned that the U.S. was unlikely to return to its role as a “voracious consumer market” that could anchor the world economy.

Pres Obama acknowledged that regulatory failures in the United States had a role in the meltdown.

Rift USA - Europe
Rift intensified over Anglo-American calls for greater fiscal stimulus spending and French and German demands for more intrusive global regulation of financial institutions

Pres of France Sarkozy would reject an agreement that puts off stringent new regulations on banks, tax havens, and hedge funds.

Togher regulations -- he has called for a “global regulator” that would be able to reach inside the borders of the United States and other large nations to deal with international financial firms -- is “nonnegotiable.”

Chancellor Angela Merkel of Germany rejected Mr. Obama’s plea for other nations to follow America’s lead and pledge greater fiscal spending to stimulate their economies.
She said more spending was not worth debating.

It appeared likely that countries would divide into 2 or 3 camps.

The United States, Britain and Japan will push for more immediate stimulus and “systemic risk” regulators that mostly operate within national borders; Germany and France will push the opposite position, probably with some support from the Czech Republic.

That leaves China and Russia, among others, to exploit the division to play a significant role.

Over the long term, Mr. Obama appeared to be preparing the world for a reshaped global economy in which the United States no longer was the ultimate export market for the world’s established and emerging powers.

Mrs. Merkel and Mr. Sarkozy laid out this argument: the United States had only now begun to understand the cost of poorly regulated free-market capitalism, and must now bow to the European model.

The German chancellor Merkel, who is scheduled to met Mr. Obama one-on-one this weekend, rejected attempts to link the American and British demands for fiscal stimulus programs to the French and German agenda on regulations

In Europe, Obama Faces Calls for Rules on Finances

http://www.nytimes.com/2009/04/02/world/europe/02prexy.html?hp

US closer to nationalized banks

Jan. 16,09 (UPI) -- Massive bailouts and a directive from Barack Obama's economic team puts the government on track to take more control of the nation's banks, an analyst said.

"We are down a path that this country has not seen since Andrew Jackson shut down the Second National Bank of the United States," Gerard Cassidy of RBC Capital Markets told The New York Times.

"We are going back to a time when the government controlled the banking system," he said.

President-elect Obama's economic advisers have advised Congress that bailout funds would include terms that give the government more leverage on how the money is spent.

In pure math, bailing out Citigroup Inc. may require funds so large the government would own a controlling share of the bank, the Times reported.

On Thursday, 1-22-09, the government announced an additional rescue package for Bank of America worth $138 billion, The Wall Street Journal said.
Bank of America had already accepted $25 billion from the $700 billion financial rescue bill passed in October 08.

Citigroup has accepted government interventions worth $300 billion, the Times said.

"There's nobody else out there to invest in them. We (taxpayers) already own them," Christopher Whalen at Institutional Risk Analytics, said.

http://www.upi.com/Business_News/2009/01/16/US_closer_to_nationalized_banks/UPI-99061232110758/