Sunday, October 9, 2011

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

Read the Whole article here


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"
Read the whole article here


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


Don F. said...

There is something that certainly stinks to high heaven, in essence what they are saying is 'we' must pay more so 'they' can make more and at more risk to us and less risk to them.
There is a picture forming from all these puzzle pieces and bits we see. All over the world the corporates are predicting doom and gloom why?
Here in B.C. we are told that we must capitalize on asian trade or lose when the clear mind realizes just the opposite that if we believe that crap and fund these shenanigans we lose. To me it looks like a lose,lose situation for the people with possible billions for the corporations. They certainly aren't pointing out any pros to the people side.
And what of our province, the decimation of our ecology and our very pride as working self productive people?
This is totally skewed and designed for their benefit not the people of British Columbia.
We must rid ourselves of these bloodsuckers asap. and reclaim our manufacturing,industry and diverse ecology for the good of the people. They will destroy all we have for a few pennies and leave our children in desperation.
It is too much for a sane mind to accept that an entire world can collapse in a few short years and we must resort to these desperate measures to survive this, someone is smoking too much hash!

Gary E said...

Now, now Don F, you can never smoke too much hash. Especially if your memory is going.

JonH said...

Grant,I think that ordinary working people in this Province are tapped out and running in the red every month because of the Organized Crime in this Province whom pass themselves off as Government (BC Liberals). As custodians of the future of the citizens of this Province they have proven to be both inept and corrupt.I believe that the reason that Chrusty didn't call an election is because the BC Liberals know they're toast and they wouldn't be able to finish the plan of pushing the ordinary people of BC into a fiscal abyss never to see daylight again.

Further to my point of being tapped out the BC Liberals also know that every British Columbian needs out of necessity electricity as they use it in every aspect of daily life. They also know that Hydro is an endless milk cow as far as extorting money out of the citizens because people will cut back on everything else before they finally allow the lights to go out. Personaly, my family and I have done everything we can think of to reduce our use of Hydro but our Hydro bill has gone up at least 20% in the last year alone. We heat our house with a woodstove and are on the averaging plan, in twelve months our monthly bill went from an average of $160 to $210 without any change in our habits ( my last bill on the daily average comparison for Sept it went from 29 kwh to 79 kwh, there is no way my use of electricity increased 2 and a half times over the same period over last year so I proceeded to frantically check all around my house for the power cord that someone had plugged in and was using, to no avail). Our Family are your average middle income and if we are feeling the heat of high Hydro rates what are low income and seniors supposed to do? Now Chrusty wants everyone to subsidize Corpoprations for their Hydro, I say fuck 'em this is the final straw, it's time to take our Province back through any means possible. Bring on the Revolution!

Anonymous said...

It is the gigantic corporations, that have all of the money which, they are now just sitting on. Therefore they call all of the shots. Politicians are merely their mouthpieces.

Greedy politicians accepted money from the big company's and were obliged that, their political party favor the big boys, they took the money from.

BC has vast natural resources, which the people don't benefit from. Campbell thieved and sold our BCR. He thieved and sold our rivers, and now ruined the salmon runs. Dirty diseased fish farms are also killing our salmon off.

BC citizens won't even get the jobs from our natural resources.

Americans wins the BC contracts and bring their own people. China is giving their people, crash courses in English and Canadian mining. They will work our coal mines.

The seven mines going into Northern BC, could be American owned or perhaps Chinese owned, they will no doubt bring their own miners.

The smelter tear down in Kitimat, is an American contract, and brought their own workers.

BC ship building contract, if won, will be an American company SeaSpan. They too could bring their own ship builders.

The Enbridge pipeline have their own workers. The dirty oil tankers, give no BC people jobs. China owns a big chunk of the tar sands. Don't be too surprised, if and when Canadian workers retire or move on, those jobs will be filled by the Chinese.

These natural resources are in our province, on our lands and oceans. Neither Christy nor Harper have lifted a finger, to protect Canadian jobs. Our jobs are being given to foreigners.

BC province and the people, do not owe, Harper, Christy, Enbridge, Alberta nor China our province, to be invaded by them. The Campbell/Clark, the BC Liberals and Harper, have stolen enough from us.

Anonymous said...

What will happen now?

The First Nations were defeated in court. Harper does not have to consult them, on the pollution of the Enbridge pipeline, nor the dirty oil tankers from China, on their lands, nor their waters. I think there will be, one hell of a blow-up over this one.

BC Mary posted an excellent article, on the subject.

Anonymous said...

Are you and the readers going to Occupy Vancouver on Saturday Oct 15th?