Los banqueros gritan: ¡Las pérdidas son por billones, no miles de millones!

Bankers Screaming: It's Trillions, Not Billions, of Losses

November 28, 2007 (LPAC) - Bankers and commentators are refering to losses in the trillions more and more these days. Ambrose Evens Pritchard, in today's Daily Telegraph, reports on a Goldman Sachs report by Jan Hatzious that housing prices in the U.S. could fall by 15%. Pritchard then computes the result that this would leave "a fifth of the country's homeowners with $3,000 billion ($3 trillion) in negative equity." The same Goldman Sachs report asserts that losses from sub-prime and Alt-A mortgage securities would together reach $500 billion, "forcing a contraction in bank lending of $2,000 Billion" ($2 trillion), adds Pritchard. Goldman, far from wanting a solution, reports that it wants interest rates cut to 3% by the middle of 2008, to continue the hyperinflationary bailout - an impossibility no matter how fast the printing presses work, or the computer-money is generated.

"¿Cuál turbulencia? ¡Esto es un terremoto!

"What Turbulence? This is an Earthquake!"

November 28, 2007 (LPAC)--"They speak about turbulences now, but this is an earthquake", said an Italian financial expert to EIR today, reflecting what LaRouche called "a general admission of leading banking institutions that the system is finished."

"My thesis is that the 3 layers are cracking now altogether," the financial expert said: "the currency level, the financial system and the real economy.... They are putting more pressures on Bernanke to cut rates, but if he does that, he depresses the dollar value further and pushes central banks to get rid of dollars, so that the U.S. currency depresses further. This is something totally new."

The source reported that China and other countries have already stopped financing the U.S. deficit by buying Treasury bonds. "The last net difference between new emissions and reimbursement has been almost entirely financed by the Arabs, who bought 255 out of 270 billions", the source said. That is why the U.S. government does not oppose the oil price increases, because this guarantees an increased flow of money into Arab oil producers and a return in terms of investments in the United States. "If they wanted, the U.S. government could bring down the oil price by intervening on derivative speculation today. The oil market is entirely virtual. There is no pressure on the demand: on the contrary, real oil shipments hardly find a purchaser unless they apply price discounts".

"Central banks are pumping money into the system claiming that this is not inflationary, because they inject and then, in a second moment, they drain the liquidity. But in the moment they drain, they have to inject it again, so that the liquidity remains in the system". They have no policy, they just proceed "by sight", injecting money there where cracks are opening. "The interbank lending system has been frozen since August. Once in a while, someone tries to sell something, and this drives interbank rates immediately up. But the system has never de-frozen, to the opposite, the paralysis has expanded".