Too Big To Fail

(A little cut n paste)


Eurozone banking collapse: Dexia is gone, who’s next?

October 7, 2011 • 10:09AM

 — To cover up the fact that the giant Belgo-French Dexia Bank went bankrupt on October 5, it was decided to avoid the word “bankruptcy” and call it “organized break-up.” Yesterday, when shares dropped dramatically by 17.24% the Belgian government decided to suspend their quotation on the Brussels stock market till Monday. Dexia’s motto was “short term has no future.” The bank plays a key role in helping some US states and cities raise funds. Concerns about its health have caused their borrowing costs to rise.
Dexia was created in 1996 when Credit Local de France merged with Credit Communal de Belgique. The company combined France and Belgium's biggest municipal lenders providing finance for spending on schools, public transport, street lighting and other locally controlled budgets. The aim was to strengthen the business ahead of the euro's launch in 1999. The single currency's introduction was expected to increase competition across the bloc's banking sector. Over subsequent years, Dexia continued to expand. It took control of the Italian lender Crediop, Belgium's Artesia Banking Corporation, the Israeli bank Otzar Hashilton Hamekomi and Turkey's DenizBank. Trouble of Dexia started when it bought the US asset management and bond insurance unit, FSA which lost big with the subprime debacle. Close to bankruptcy, Dexia was saved in September 2008 with a 6.4 billion euro bailout by France, Belgium and Luxemburg.
Besides the vast amount of old “toxic assets” conserved in Dexia’s “legacy division”, today, what provoked collapse it’s the euro crisis. Dexia has 3.4 billion euros exposure to Greek government bonds. Analysts estimate it has a further 17.5 billion euros of exposure to sovereign debt issued by Italy, Spain, Portugal and other troubled eurozone economies.
Ironically, on July 15, Dexia passed the banking stress tests carried out by the European Banking Authority and announced in a press release: “2011 EU-wide stress test results: no need for Dexia to raise additional capital”. The problem is that the tests did not take into account a scenario in which Greece might default on its bonds. Dexia has written down the value some of its long-term Greek holdings by 21%. However, some speculate that creditors may ultimately have to absorb a 50-60% loss

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The Wall Street occupation, this sucker is growing and growing, finally the world is awakening, the above story caught my eye not because it`s another banking failure and bailout, what caught my eye was the fact that these thieves can`t even call a bankruptcy a bankruptcy, they are using the term..

 "Organized break up"

These effing crooks, remember these 21st century phrases....Quantitative easing(Crank up the printing press)

Austerity measures(governments reneging on every promise made)......


Too big to Fail,  how come Apache Canada, EOG resources and EnCana Gas want the residential BC hydro customer to subsidize the proposed LNG terminals in Kitimat, how come multi-billion dollar companies who are rolling in dough have stated point blank and I quote...


"The gas export plan could mean higher domestic energy prices for residential and industrial customers in the future and would crank up Canada’s greenhouse gas emissions. Yet there has been barely a ripple of protest and nobody risking arrest on Parliament Hill or on the doorstep of the White House.

In fact, the idea enjoys broad support, from politicians of all stripes to the local first nation and other aboriginal groups along a pipeline route that would bring the gas to Kitimat on the B.C. coast, where it would set out for Asia.
The Kitimat LNG project is a three-way joint venture between U.S. energy companies Apache Corp. (APA-N84.84-1.39-1.61%)and EOG Resources Inc. (EOG-N74.90-3.64-4.63%), along with Canadian gas giant Encana Corp. (ECA-T19.71-0.94-4.55%)They are expecting to receive a crucial export permit from the National Energy Board within days. A decision to proceed is expected by early next year. Gas could be on ships by 2015"
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That above article in the Globe and Mail, they go out of their way to say how important this private sector project is for BC and Canada, they use terms like.."energy super power"....A "Key player in Global energy markets"..etc etc etc...Yet how come EnCana gas, Apache Canada and EOG resources state on the record that they will require a subsidy from both BC Hydro ratepayers and Fortis customers, if this plan is so viable why will they not proceed unless BCers sudsidize the entire operation through hydro rate increases!.....Perhaps someone in the BC media might want to ask Christy Clucking Clark about that, and perhaps some astute reporter might want to ask those 3 corporations where they plan on getting 11,000 gigawatts of power, that friends is 10 Site C dams.....

There might be 300 megawatts available from Kemano but that still leaves a shortfall of over 10,000 gigawatt hours...There isn`t enough power for 1 terminal let alone 3....Until the Hydro electric problem is resolved, and  being resolved means this....

Who the hell will be paying for the free power demands of Apache Canada, EnCana corp and EOG resources....If it means rate increases for BC residential customers and other local BC business customers then I say no...

The unmitigated gall for these multi-billion dollar per year in profits corporations to propose major industrial projects that require dipping directly into your pockets, these companies need your rates on hydro to rise so they can fatten their bottom line, those three corporations want to dam up dozens of BC rivers for their projects and they want you to subsidize their rates, in fact the hydro rate they propose to pay is zero....Families First.....Christy Clark must mean these families first!

I won`t drink the Kool Aid .....It reminds me of Jonestown!

The Straight Goods

Cheers Eyes Wide Open