Oil @ 150……..200………..250 US$ and Japan

Oil @ 150……..200………..250 US$ and Japan

When production loss in the world is growing, 

Nation       Capacity loss                 

Libya - 1.6 million barrels         1 million barrel - will take at least 1 year to reach pre-revolution 

Yemen - Loss 300,000 barrels

South Sudan - 350,000 barrels main buyer China

Syria - 250,000 barrels

Nigeria, and other African nations - 

Total loss of production 2 million barrels - total spare capacity - Saudi Arabia - 2 million barrels a day, presents products is already using 1.5 million barrels spare capacity. There is no more spare capacity which can be brought into use.

Oil 150 US$ soon..............200 after some more time........

No alternative for Japan rather than buying Iran oil in short and long term

Japan posts record trade deficit

Increased energy imports contributed to Japan last year recording its first annual trade deficit since 1980. 

The Japanese economy is one of the third largest in the world. Only the USA and China have a higher GNP. Japan is the 3rd largest economy in the world behind the US and China. In 2010, Japan's GDP (Current Prices, US dollars) was US$5.458 trillion and its GDP (PPP) was US$4.309 trillion.

Imports: Japan has a surplus in its export/import balance. The most important import goods are raw materials such as oil, foodstuffs and wood. Major supplier is China, followed by the USA, Australia, Saudi- Arabia, South Korea, Indonesia and the United Arab Emirates.

Industries: Manufacturing, construction, distribution, real estate, services, and communication are Japan's major industries today. Agriculture makes up only about two percent of the GNP. Resources of raw materials are very limited and the mining industry rather small.

• Japan needs to import about 84% of its energy requirements.
• Its first commercial nuclear power reactor began operating in mid-1966, and nuclear energy has been a national strategic priority since 1973.
• The country's 50 main reactors have provided some 30% of the country's electricity and this was expected to increase to at least 40% by 2017.
• Japan has a full fuel cycle set-up, including enrichment and reprocessing of used fuel for recycle.
• Japan posts a record trade deficit of $18.7 billion in January – 2012
• Rise due to the increase in oil prices and increase of fossil fuel imports
• Deficit fueled by the shutdown of Japan's nuclear power plants
• Only five reactors out of 54 still online after March 11 earthquake and nuclear disaster

Japan has posted a record trade deficit for January after its nuclear crisis shut down nearly all reactors, sending fuel imports surging.

The Y1.48 trillion ($A17.27 billion) deficit reported on Monday has highlighted Japan's increased dependence on imported fuel after the March 11 earthquake and tsunami sent the Fukushima nuclear plant into multiple meltdowns.

Now, Japan is importing more natural gas and oil as utilities boost non-nuclear power generation. Imports of natural gas in January increased 74 per cent from a year earlier and imports of petroleum jumped nearly 13 per cent.

Despite producing only trifling amounts of oil domestically from fields off its west coast, Japan is the third largest oil consumer in the world behind the U.S. and China, as well as the third largest net importer of crude oil. Imported oil accounts for some 45 percent of Japan’s energy needs. Besides bringing in a lot of oil, Japan is the world’s largest importer of both coal and liquefied natural gas.

Supplying the same amount of electricity by oil, for example, would increase oil imports by about 62 million metric tons per year, or about 1.25 million barrels per day,” says Toufiq Siddiqi, a researcher with the nonprofit East-West Institute. He adds that at the current price of oil per barrel (roughly $100), switching out nuclear for oil would cost Japan upwards of $46 billion per year. “Further, it would take almost a decade to build enough new oil, coal or natural gas-fired power plants to provide the equivalent amount of electricity, and tens of billions of dollars per year would be required to do so,” he concludes.

Japan January Liquefied Natural Gas Imports Rise 28.2%;

Japan’s liquefied natural gas imports rose to a record in January after the Fukushima nuclear disaster led to the shutdown of most of the country’s atomic reactors, causing utilities to use more fossil fuels.

The nation’s LNG imports climbed 28.2 percent from a year earlier to 8.15 million metric tons, according to a preliminary report released today by the Ministry of Finance.

Japan appears to be looking to natural gas, specifically liquefied natural gas (LNG), to compensate, increasing LNG imports by 27 percent year-on-year in January 2012 and receiving imports from new sources such as Qatar and Russia.  Japan was only meeting about 16 percent of its energy demand through domestic production before the disaster, and 30 percent of that production came from nuclear energy.

Natural gas and other conventional fuel imports will rise after Japan's nuclear disaster. Asian exporters of natural gas, coal, and oil should see the biggest boost.

But analysts say the amount of fuel Japan must import to make up for shutdown nuclear generation will greatly outstrip the immediate drop in consumer demand. Goldman Sachs estimates Japan must import 247,000 barrels a day of oil to compensate for the country's lost nuclear capacity while demand will drop only 16,000 barrels a day due to an expected economic slowdown in the first half.

Oil @150.......200.......250 Can Europe Survive?

Sanctions biting more to Europe than Iran?

Can Europe Withstand United or America wanted  to destroy EU and Euro, the only Challenge to Dollar as reserve currency?

Today oil is @120 USD a barrel, Iran has announced it will stop oil exports to six European countries which includes Greece, Italy, Portugal, Spain ........ all of these countries facing sever financial crisis, Greece is very - very close to default, it may or may not but market is already rattled and will have long term pain.

This may not be enough 

Moody's May Downgrade 17 Banks, Securities Firms

Moody is American Company

By Ian Chua and Soyoung Kim

(Reuters) - Moody's warned on Thursday it may cut the credit ratings of 17 global and 114 European financial institutions in another sign the impact of the euro zone government debt crisis is spreading throughout the global financial system.

This may not be enough for Greece ......... where pain is more

'Europe is poor so should live within its means'

For decades the West has lectured the East on how to manage its economies. Not any more.

Now the emerging economies of Asia look like models of steady, consistent policy and sustained growth while Europe, America and Japan are mired in debt and are growing achingly slowly, if at all.

So what can the West learn from the East?

According to former Malaysian Prime Minister Mahathir Mohamad, the message is simple but devastating: Europe must face up to the new economic reality.

"Europe... has lost a lot of money and therefore you must be poor now relative to the past," he reasons in an interview with BBC World Service's Business Daily.

"And in Asia we live within our means. So when we are poor, we live as poor people. I think that is a lesson that Europe can learn from Asia."

They Call it Trading, I call it gambling.

UBS Trader in $2 Billion Loss on Unauthorized Trade

Switzerland's UBS said on Thursday it had discovered unauthorized trading by a trader in its investment bank had caused a loss of some $2 billion.

"The matter is still being investigated, but UBS's current estimate of the loss on the trades is in the range of $2 billion," the bank said in a brief statement just before the stock market opened."It is possible that this could lead UBS to report a loss for the third quarter of 2011.No client positions were affected."

UBS shares immediately tumbled 8 percent at the open and were trading down 5.8 percent at 10.30 francs at 0714 GMT, compared with a flat European banking sector index [.SX7P  127.23    1.40  (+1.11%)   ] .

"It is amazing that this is still possible," said ZKB trading analyst Claude Zehnder. "They obviously have a problem with risk management. Even when the amount isn't so high it is once more a loss of confidence that casts UBS in a poor light."

"With this they are losing a lot of credit that they had regained with effort," he added.

UBS had started to see client confidence return this year after it had to be rescued by the Swiss state in 2008 following massive losses on toxic assets held by its investment bank.

UBS AG announced last month it is to axe 3,500 jobs to shave 2 billion Swiss francs ($2.3 billion) off annual costs as it joins rival investment banks in reversing the post-crisis hiring binge and preparing for a tough few years.

Investment banks worldwide have been hit by slow trading due to the debt problems in the euro zone and United States, as well as regulations aimed at forcing banks to hold more capital to protect them from future shocks after the 2008 global financial crisis.

UBS expects to book a restructuring charge due to the job cuts of some 550 million francs, and around 450 million francs of this will be booked in the second half of the year, with the majority recognized in the third quarter.

When Government Pay for Rich, Poor gets Poorer - This is called capitalism

U.S. poverty totals hit a 50-year high

The governments efforts to save the banks is basically paying poor people's money ( stealing and extorting) and giving it to rich to enjoy life. The whole exercise of QE1 and QE2 are just efforts in saving the funding lobbies and their interest so that they can get funding for next elections. All these easing has made life more difficult for the poor. It has made basic staple food affordability not only in poor countries but also in USA. More than 15% are poor who can have healthcare, housing and education. 

Unless and until government change its policies and methods how so called free market work( there is no free market in fact, there are many interventions and QE which really distorted it.)

Let us clean the system, remove the toxic, stop all types of gambling( derivatives, futures and options).

Then and then we can see peace in this world, where poor gets justice.

Soaring Poverty Casts Spotlight on 'Lost Decade'

This is report of 

By Don Lee, Noam Levey and Alejandro Lazo, Los Angeles Times September 14, 2011

Reporting from Washington—

In a grim portrait of a nation in economic turmoil, the government reported that the number of people living in poverty last year surged to 46.2 million — the most in at least half a century — as 1 million more Americans went without health insurance and household incomes fell sharply.

The poverty rate for all Americans rose in 2010 for the third consecutive year, matching the 15.1% figure in 1993 and pushing many more young adults to double up or return to their parents' home to avoid joining the ranks of the poor.

Taken together, the annual income and poverty snapshot released Tuesday by the U.S. Census Bureau underscored how the recession is casting a long shadow well after its official end in June 2009.

And at the current sluggish pace of economic growth, analysts don't expect many of these indicators of economic and social well-being to turn better soon.

Census officials wouldn't say definitively what caused the surge in poverty, but it was evident that the root of the continuing misery was the nation's inability to create jobs.

The total number of Americans who fell below the official poverty line last year rose from 43.6 million in 2009. Of the 2.6-million increase, about two-thirds of the people said they did not work even one week last year.

Those with jobs were much less likely to be poor, but the recession and weak recovery have wiped out income gains of prior years for a broad spectrum of workers and their families. Inflation-adjusted median household income — the middle of the populace — fell 2.3% to $49,445 last year from a year ago and 7% from 2000.

"It's a lost decade for the middle class," said Sheldon Danziger, a poverty expert at the University of Michigan.

The number of poor children younger than 18 reached its highest level since 1962, said William Frey, a demographer at the Brookings Institution.

Poverty reached a record high for Latino children, who Frey said accounted for more than half the overall increase in poor children last year.

Blacks had the highest child poverty rate at 39%, up more than 3 percentage points from last year.

Overall, poverty was generally higher than the national rate in states with high unemployment and in the South. Mississippi had the highest poverty rate last year, at 22.7%, and New Hampshire had the lowest, 6.6%.

The share of Californians who fell below the poverty line rose last year to 16.3%, up a full percentage point from 2009.

The state's median household income, meanwhile, plunged 4.6% to $54,459 — marking the largest single-year decline on record, according to the California Budget Project.

Christopher Noack, 25, had little choice last year but to move back into his parents' home in the Central California town of Salida. The high school graduate tried to support himself on retail jobs and, for a while, lived in an apartment with a friend, even taking on extra household chores to pay a lower share of rent. But that wasn't enough.

"It feels like life is on hold," said Noack.

"Every now and then, I will see someone who I used to know in high school, who I know got a job. They will be having a business lunch or be on the way to the airport, and one out of 10 times I will get a twinge of jealousy because, just simply, I don't know anybody who could get me on a path like that."

Noack's frustrations are shared by many others in his age group, including college graduates.

Overall, the number of 25- to 34-year-old men and women who were living with their parents last spring totaled 5.9 million — a 25.5% increase since the recession began in 2007.

Nearly half of this group would have been counted as among the poor had they been out on their own, according to Trudi Renwick, chief of poverty statistics for the Census Bureau.

"The next generation is going to be terribly punished if we don't find more jobs," said Timothy M. Smeeding, director of the Institute for Research on Poverty at the University of Wisconsin. Studies have shown the effects of recessions and job losses can hurt a worker's earnings for many years into the future.

The census report, coming shortly after President Obama unveiled a proposed $447-billion package of tax cuts and spending to revive job growth and the recovery, was seen as intensifying the debate over the government's role in helping the poor and unemployed at a time of budget deficits and painful cutbacks in public services.

Unemployment benefits, the Census Bureau said, helped lift about 3 million people above the poverty line, and Obama's latest proposal includes continuing the aid.

The report "underscores yet again why these programs must be maintained to rebuild the economy," said Christine Owens, executive director of the National Employment Law Project, referring to unemployment insurance and Social Security benefits.

But conservative groups expressed their concerns about Americans' growing reliance on such programs, including government health insurance.

"It raises the issue of whether we can afford this," said Nina Owcharenko, director of health policy studies at the Heritage Foundation. "These entitlement programs are unsustainable."

The census report found more Americans again lost health insurance in 2010, continuing a decade-long erosion in coverage that pushed the percentage of uninsured to 16.3%, the highest ever recorded.

But the decline in health coverage slowed from 2009 to 2010 and was not statistically significant, according to census analysts.

The number of young people ages 18 to 24 who had insurance increased significantly, possibly reflecting the effect of the new healthcare law, which allows dependents up to age 26 to remain on their parents' health plans.

The decline in insurance coverage was fueled largely by employers dropping health benefits as healthcare costs continued to rise, a trend that has reduced the percentage of Americans who get health benefits through work from a peak of 65.1% in 2000 to 55.3% last year.

During that period, the average annual premium for an employer-provided family health plan more than doubled to $13,770 from $6,438, according to surveys by the nonprofit Kaiser Family Foundation.

As Americans lost coverage through work, they have increasingly relied on government programs such as Medicaid.

"The real policy take-away is the importance of protecting the safety net," said Families USA Chief Executive Ron Pollack, a leading consumer advocate. "Medicaid is the lifeline."

By the Census Bureau's latest measure, the poverty threshold last year was an income of $11,139 for one person and $22,314 for a family of four.

Lorenzo Williams, 25, of Hesperia is well below that threshold.

After his hours as a store clerk at the local Salvation Army had been cut twice, reducing his monthly earnings of about $1,500 to about $600, the high school graduate had to move from his one-bedroom apartment to a small two-bedroom unit to share costs with a roommate. With $166 a month in food stamps, he barely gets by.

Williams said he goes to job fairs, but the lines are long, the competition tough. He now plans to begin Bible studies next year and become a pastor.

The official poverty rate doesn't count food stamp benefits and low-income tax credits as income

If those programs, which totaled about $150 billion last year, were included, millions more people would have been counted as being above the poverty line.

At the same time, analysts said, other factors understate the extent of people struggling to meet their basic needs.

Experts agree that the government's poverty thresholds, designed in the early 1960s, don't reflect people's spending and living needs in today's economy.

The Census Bureau is scheduled to release alternative measures of poverty in October.

don.lee@latimes.com

noam.levey@latimes.com

alejandro.lazo@latimes.com

JP Morgan Chief Says Bank Rules 'Anti-US'

http://www.cnbc.com/id/44481524

America Should Pull Out of Basel - Because they are Anti American
America is Out of Kyoto - Because they are Anti America
America is Out of ICC - It is illegitimate


What suits to America is Americanism - What suits to World and Principle of Justice is Anti America - This is what exactly Americanism

New international bank capital rules are “anti-American” and the US should consider pulling out of the Basel group of global regulators, Jamie Dimon, chief executive of JPMorgan Chase, has said.

In an interview with the Financial Times, Mr Dimon said he was supportive of forcing banks to have more capital but argued that moves to impose an additional charge on the largest global banks went too far, particularly for American banks

The Basel III capital rules are designed to make the financial system safer by making banks build up risk-absorbent “core tier one” capital to at least 7 percent of risk-weighted assets. The biggest, including JPMorgan [JPM  32.08    -1.43  (-4.27%)   ] , have to reach 9.5 percent.

“I’m very close to thinking the United States shouldn’t be in Basel any more. I would not have agreed to rules that are blatantly anti-American,” he said. “Our regulators should go there and say: ‘If it’s not in the interests of the United States, we’re not doing it’.”

Mr Dimon also criticised global liquidity rules, arguing that regulations that viewed covered bonds – a European market feature – as highly liquid but discounted government-backed mortgage-backed securities in the US were unfair and that other details hit investment banking activity core to US banks hardest.

Regulators say all countries compromised on agreeing the rules, which put eight banks – five from outside the US – in the top level of capital. But Mr Dimon said there was a threat that Asian banks, in particular, could take US market share because of the combination of US domestic and global rules.

“I think any American president, secretary of Treasury, regulator or other leader would want strong, healthy global financial firms and not think that somehow we should give up that position in the world and that would be good for your country,” said Mr Dimon. “If they think that’s good for the country then we have a different view on how the economy operates, how the world operates.”

US banks are struggling to deal with new regulations and litigation, both stemming from the financial crisis. Mr Dimon said it could be “three to 10 years” before the industry emerged from lawsuits brought by investors looking for compensation for the losses incurred on structured products underpinned by bad mortgages.

He said he was ready to agree a settlement over lax servicing and foreclosure standards that is expected to see the industry pay $20 billion in penalties. But he said banks could not be placed in “double jeopardy” and needed an appropriate release from legal liability

Ready ........ Get ......... Set ............ Go.... Get Ready for Crash

The Market is Jittery......... Peoples and Leaders are Worried


I don't know know why they are worried?
Whom these leaders really represents?
The billions of poor who voted them to power or few millions who finance their election bids.
These leaders always looks at the lobbies for financing their election bids and these comes with price. 
This price tag is many times very high and at the cost of those voted them to power.
This is why they care and financed the gambling of rich, the rescue of banks and the different measures to avoid the crash is nothing more than the sucking blood of poor.
More and more people are getting hungry and poorer. The basic necessity of life Food is becoming more and more non affordable to them.


Let their be crash and this will start of cleaning of toxic in the system. This will make food more affordable for poor. 


This crash will not solve the problem unless and until we remove the causes from the system which made this crisis.


The financial system needs cleaning and this is painful. There is no other solution.


Let there be crash.......... it will be good for market.

Change is Awaited?

Starbucks CEO: Tell lawmakers to get along

How the things will move from here?

With 47 USD in commitment, will it be any solution. With all best efforts, there is only one way to go, stop playing. Stop playing with live lives of innocent people. This paying for rich is making more people hungry. There is only one solution, clean all toxic from system. Clean the system of poison and then only it can start growing.

Stop all such products which created these toxic in the system. Make the system more clean, transparent and accountable. No one is above the boards, every one should be held accountable including USA and its nationals for destroying the global financial system, and putting millions of poor to death for increasing food prices. This finanial system and fiat money is at core of problem.

The real problem is no body wants solution, they just want patch up, so that they can continue playing without accountability and governance. The present financial system will and can not do a solution.

Change is needed?

Change is awaited?

Let us Change this world........... for better and peaceful tomorrow.

What I see from here......... how the things will look like........

There is no currency against which dollar can go down, everyone in this world is fighting to lower the value of currency including Japan and Swiss and China. When there is no bench mark and free market as believed then what remains?

The dollar will be benchmarked against commodities, and specially food which no one will stop eating.

The commodities in general and food in particular will see very high price rise.

Oil ----------- 150 -170 USD next three years..............200-250............ 5 years.
Food ...........30%..50% up 3 years.........100% ...... 5 years
Commodities............ 30%........70% depending on type.

This will bring 30% new poor who can not efffort food. ( peoples without basic nessicities)
Millions more will die because of this............

Please if any one in this world has answer , please let me know,

Who is accountable for death of these millions ?

And Many more millions hungr?

Are these not criminals? Criminals of worst kind?

Let them all held accountable for their deeds?

Even if they are free and not held here, they will be punished there in final day of judgment? HERE AFTER?

America Dinned and Partied now Friends will Pay the Bill

Debt Deal - Obama Accused of ‘Surrender’ as Debt Vote Looms - CNBC

American Default is sure
The concept of capitalism is spending beyond means by borrowing on assuming future flows, when it does not happen then defaulting, going to bankruptcy. This is what exactly many individuals are doing. Peoples are being lured into spending beyond their means. American in general are deep into debts apart from government debt.

The Biggest Types of Personal Debt
In today’s economy, massive consumer debt has crippled the personal balance sheets of individuals around the country, making a tough economy even tougher. With foreclosures on the rise and many Americans crippled by over-extended credit cards, personal debt is becoming a major player in the economic crisis. Payday Advances - $40 billion
A payday advance is a small, unsecured short-term loan, normally between $100-$500 with typical interest rates between 15-20 percent and maturities of about 14 days. However, because of the short term of maturities, APR for payday loans can be anywhere between 400 and 700 percent and, if not immediately paid in full, individuals can get themselves into serious financial trouble.
Small Business Loans - $68 billion
SBA Loans Oustanding (As of 2/28/09) 7(a) – 317,358 loans, $45.93 billion 504: - 52,217 loans, $22.08 billion
Farm Loans - $114.2 billion
Auto Loan Debt – $313.8 billion
Tax Debt Owed to IRS - $345 billion
Student Loan Debt Outstanding - $556 billion
Revolving Home Equity Credit - $577.8 billion
Revolving Consumer Credit Outstanding - $953.1 billion
Major Holders (in billions) Pools of securitized assets: $440.3* Commercial Banks: $382.0 Finance Companies: $55.8 Savings Institutions: $39.0 Credit Unions: $32.2 Non-Finance Businesses: $3.8 Residential Mortgage Debt Outstanding: $14.64 trillion
Breakdown of Total Outstanding Mortgages: One- to four- family residences: $11.03 trillion Nonfarm, nonresidential: $2.59 trillion Multifamily residences: $895.79 billion Farm: $111.15 billion

Biggest Holders of US Gov't Debt
This borrowing adds to the national debt, which has recently surpassed the $14 trillion mark and is rising every day. The amount of debt is quickly approaching the federal debt ceiling, a legal limit to borrowing which currently stands at $14.294 trillion. Much of that debt is held by private sector, but about 40 percent is held by public entities, including parts of the government. Here's who owns the most.
15. Canada
For the first time in recent history, Canada's holdings of US debt has broken into the top 15, surpassing Taiwan by about $3.6 billion in November 2010.
14. Hong Kong
US debt holdings: $138.9 billion
13. Caribbean Banking Centers
US debt holdings: $146.3 billion
12. Brazil
US debt holdings: $184.4 billion
11. Oil Exporters
US debt holdings: $210.4 billion Included in the group of oil exporters are Ecuador, Venezuela, Indonesia, Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates, Algeria, Gabon, Libya, and Nigeria.
10. Insurance Companies
US debt holdings: $261.8 billion 9. Depository Institutions
US debt holdings: $269.8 billion
7. (Tied) United Kingdom
US debt holdings: $511.8 billion
7. (Tied) State and Local Governments
US debt holdings: $511.8 billion
6. Mutual Funds
US debt holdings: $637.7 billion
5. Pension Funds
US debt holdings: $706.4 billion
4. Japan
US debt holdings: $877.2 billion
3. China
US debt holdings: $895.6 billion
2. Other Investors/Savings Bonds
US debt holdings $1.458 trillion
1. Federal Reserve and Intragovernmental Holdings
US debt holdings: $5.351 trillion About a decade ago, the total government holdings were "only" $2.5 trillion.

The best option for Greece is to default

Euro Debt Crisis: Greece Crippled by Protests, Strike Over Austerity - CNBC

Greece are already junk grade CCC and nothing more to lose. The best option today for them is to default. Dubai defaulted and restryctured and now moving slowly so is Iceland. in 1996 currency crisis Indonesia along with other nations used the gimmick.
Why the nation and peoples pay for the American Mess? Let there be default, give the bond holder including the master of the ring Goldman big haircut. It will take some time but Greece will be soon out of crisis.
Default will help Greece to come out of the crisis soon. If we look at history of default then, Argentina and many more defaulted. The bond holder who paid for corruption and luxury must be held responsible and given good haircut on their value.
Why future generations pay for the crisis?
No to mess? No to Printing Press? No to Printing money worth nothing.
For the bright future and safe and secure tommorrow for the next generation best solution is default.
The bond holder must pay for their risk?
This is only way out.

EU-US Economies - Will Another Lehman-Style Crisis Be Prevented? - CNBC

EU-US Economies - Will Another Lehman-Style Crisis Be Prevented? - CNBC

No it is not possible. The crisis can not be prevented. When we look at present situation not much has been changed and the causes of the previous collapse are still existant in the market.

• Too Big to Fail -- The companies which were affected and needs rresue have become bigger, the systematic risk of collapse of the system has not removed or reduced, over the years it has increased.


• Off Balance Sheet Transaction - Derivatives and swaps are there and no body really knows how much each of them owe. How much risk or swaps or derivates they have played. Derivatives are sttill off balancesheet and not goverened by the Financial Authorities.


• Toxic assets are still there on the balance sheet sitting and looking pretty beutiful. No one knows how much toxic each of them has and what is its worth.


• Credit Rating Agencies are same, methods are same and methodology is the same. They are still beyond control and again started playing the dirty game.


• Auditors are same - they have not changed their behaviour and practices. They are not controlled and supervised.


• Housing is going down, mortges are under water and bond for them are in market. Game is still on.

Unless and untill the reasons behind the crisis are corrected, another crisis can not be avoided.

The only difference is that, Mr. Ben Bernanke has new printing press and this one is priting Dollars and Printting as much he want. No one in world is sure what is worth of this Dollar.

God's Own Work@Goldman Sach

This is unending love story of capitalist economy called “Financial Crisis”. How the Wall Street and biggies of Wall Street loves money, and how much they love it. They have given this name “God own work”. They are doing God’s own work by cheating and defrauding. Making richer more rich and poor …………… poorer. This is called God’s Own Work in their words. But unfortunately this is exactly the definition of Capitalism. The whole concept of free money, free economy, without control and restriction and governance is what Capitalist Want.

If we look at whole financial crisis we can very easily say that the core reason is manipulation, and cheating, which they named structuring. Structuring of financial product, derivatives and swaps in such a way which nobody can understand.

Goldman Sach is being investigated for fraud, but the list is very long. The Greek debt by Goldman Sach should also be considered as cheating and their role in collapse of Lehman Brothers must also be investigated.

When I have gone through whole document of evidence and financial crisis I came to the following conclusion.

Financial Crisis

Financial Crisis, world has seen the big names of finance and banking no more exists, they are gone and gone for ever. Because of the financial melt down, more people has gone into poverty and more people finding it difficult to meet the both ends. What is problem and who is responsible for, and what is the alternative and long term solution.

What is problem?

The problem lies in the system where making money from money at any cost is sole objective called as capitalism. The specific reason related to the financial crisis is as below.

Institution and Product

• Financial Crisis and collapse of financial industry, moral hazard is the core of the causes.
• Securitization eliminates the incentive for the originator of the loan to be credit sensitive... With securitization, the dealer (almost) does not care as these loans can be laid off through securitization.(called a ‘‘moral’’ hazard). The originating banks replenished their funds, enabling them to issue more loans and generating transaction fees.
• Credit rating agencies having given investment-grade ratings to MBSs based on risky subprime mortgage loans. However, there are also indications that some involved in rating subprime-related securities knew at the time that the rating process was faulty. ( moral hazard)

· The Bank of International Settlements, which seems to be the only institution that tracks the derivatives market, has recently reported that global outstanding derivatives have reached 1.14 quadrillion dollars: $548 Trillion in listed credit derivatives plus $596 trillion in notional/OTC derivatives. And a look at their massive exposure shows that even a small miscalculation or stumble in the capital markets could be a recipe for unprecedented disaster. The majority of the $1.28 quadrillion in derivatives are “owned” on somewhere near 95 percent margin!

“Reason for Financial Crisis in Short”

o Unethical Practices and Moral Hazard

o Securitization and speculation

o Paper Currency

o Derivatives and Structured Products

If we look at the core of the financial crisis, it all started with unethical practices of lenders/banks to lend the money who can not afford it. These bankers are only interested in getting processing fees and placement fees and making money on it. They bundled these entire low quality loan into securities, and sold to the market. Most importantly rating agencies rated these securities wrongly to get good rating. Then market players sold CDS and Interest rates swaps on them based on these rating. Then speculators played on these securities to generate profits.

When it comes to commodities I can say securitization of commodities market and derivatives played by the speculators are the sole reason for the high prices of commodities across the world. Derivatives are the other reason of collapse. Role of paper currency is another very important issue at the center of financial crisis. These papers currencies which do not have any weight themselves has become most important tool of the speculators, derivatives, currencies and their casino’s has played key role in financial crisis. Securitization and securities market has become the 24 hour casinos for the speculators who play on 95% barrowed money. (Commodities, currencies and derivatives)

Why not Auditors and Credit Rating Agencies?

But a crucial question remains that has not had much exposure: where were the auditors? Unqualified audit reports up to the collapse had concluded that the directors’ reports and accounts reasonably reflected reality.

Role of auditors:

Auditors have contributed to the crisis by accepting directors’ “mark-to-market” valuation of trading assets, when some basic questions would have shown them that those directors (i) hadn’t the remotest clue what was in the mortgage / loan packages they had acquired; (ii) were utterly bemused by the nature of the complex derivatives on which their asset valuation rested; and (iii) knew that there was no market to “mark” to.

Derivatives are central to the demise of Lehman. Its annual accounts mention derivatives contracts with a face value of $738bn and fair value of $36.8bn.

UK forensic accountant Richard Murphy says: "The fundamental question is how accountants got away with changing rules of accountancy, which state they don't have to assess the valuation of assets underlying the assets on a balance sheet. How did they get away with changing the audit rules?"

The Role Played by Credit Rating Agencies

Flaws in rating methodologies were the major reason for underestimating the credit default risks of instruments collateralized by subprime mortgages.

The governance of credit rating agencies did not adequately address issues relating to conflicts of interests and analytical independence.

Rating process needs to be optimized
Looking back at market developments and rating activities during the past few months, it becomes clear that a number of factors have adversely affected the quality of the work done by CRAs: