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Hiz Princess
United Kingdom
464 Posts |
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Santanfara
3460 Posts |
 Posted - 17 Sep 2008 : 19:46:09
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quote:
Originally posted by Hiz Princess
Well theres a surprise not!!!!!!!!!!
US authorities last night pieced together an emergency $85 billion rescue of insurance company American International Group Inc to stave off a bankruptcy that could have thrown world markets into deeper turmoil.
http://www.independent.co.uk/news/business/news/us-government-steps-in-with-85bn-aig-rescue-933257.html
HP, things are getting desperate. an insurance company being bail out! hilarious. i never thought that will happen in our life time. interesting times ahead. Ribba is to blame. |
Surah- Ar-Rum 30-22
"And among His signs is the creation of heavens and the earth, and the difference of your languages and colours. verily, in that are indeed signs for men of sound knowledge." Qu'ran
www.suntoumana.blogspot.com |
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njucks
Gambia
1131 Posts |
Posted - 21 Sep 2008 : 17:13:02
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quote:
Originally posted by Janko
The circle is complete; good or bad?
............ What are the lessons learnt from privatisation and state/public ownership.
Has anybody seen the World Bank or the IMF? Janko your question should be pushed to these two institutions, who have not only been preaching privatisation but have actually being forcing developing countries to privatise!
in a week where the world apparently experienced its worse financial crisis that also saw some of the biggest nationalisations go unpunished. the WB/IMF have apparently been very silent .
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Edited by - njucks on 21 Sep 2008 17:16:34 |
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mansasulu
997 Posts |
Posted - 21 Sep 2008 : 18:46:27
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| So much for the saying that Capitalism is the best system...free market economy blah blah blah... |
"...Verily, in the remembrance of Allâh do hearts find rest..." Sura Al-Rad (Chapter 13, Verse 28)
...Gambian by birth, Muslim by the grace of Allah... |
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Janko
Gambia
1267 Posts |
Posted - 22 Sep 2008 : 00:06:53
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Njucks,
What happened to Wolfowitzt or Wolf…..?
They preached a monstrous combination of privatisation with the eliminations of subsides which equals to underdevelopment. |
Clean your house before pointing a finger ... Never be moved by delirious Well-wishers in their ecstasy |
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kayjatta
2978 Posts |
Posted - 22 Sep 2008 : 07:22:25
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Hey guys I am not sure this has much to do with privatization per se as such. Privatization has worked very well for the U.S. economy and much of Western Europe.
The focus of this problem appears to be the financial institutions such as the banks, brokerage firms, and other lending institutions. It is true that greed and the drive for unlimited profits has pushed some of these institutions on Wall Street and elsewhere in the financial market into risky practices and ventures that have eventually back-fired thereby killing investor confidence and the resultant credit crunch that is suffocating many of the institutions like Fannie, Freddie, Lehman, AIG, and others.
Privatization, notwithstanding, to a certain extent creates a lot of growth and efficiency; but perhaps beyond a certain threshold it could decay into a destructive spiral like what we are seeing in Wall Street today. But collectivation and large scale government/state ownership of the means of production is not a viable alternative.
We have to remember that these troubled financial institutions have been operating in the sector of the U.S. economy that has received very little oversight (regulation). They were basically on a free reign, unscrutinized (except by the SEC) unlike other sectors of the economy with more government oversight.
I think what the FED is coming up with now is that, after the bailout, there will be more government scrutiny/regulation of the operations of these financial institutions. I think that is all we are going to see right now; not a massive government takeover that will amount to the so-called "communism" some critics are refering to... |
Edited by - kayjatta on 22 Sep 2008 09:41:32 |
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njucks
Gambia
1131 Posts |
Posted - 22 Sep 2008 : 10:08:05
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quote:
Originally posted by kayjatta
.........Privatization, notwithstanding, to a certain extent creates a lot of growth and efficiency; but perhaps beyond a certain threshold it could decay into a destructive spiral like what we are seeing in Wall Street today. But collectivation and large scale government/state ownership of the means of production is not a viable alternative.
I think what the FED is coming up with now is that, after the bailout,
Kay
isnt it what is happenning now. Large scale government ownership of the means of production? Bailout, or nationalisation if you want to call it that means govt is coming back into the productive parts of the economy.
my earlier point is that, in developing countries government also try to bailout state run corporations to save jobs etc and usually the World Bank/IMF are against this. Thus I find it strange that they are silent in all this.
here is a good article, some are calling for a tribunal. Never Again they say.Never. well lets wait and see.
http://www.guardian.co.uk/commentisfree/2008/sep/17/economics.banking
however i agree with you that regulated privatisation is a good thing. |
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kayjatta
2978 Posts |
Posted - 22 Sep 2008 : 10:30:02
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Njucks, I think the problem with Third World countries like the Gambia is that the State owns almost everything. There is hardly any significant private property. All the important sectors: energy, marketing of produce, employment, healthcare delivery, education, etc. Therefore, since govt. control of this industries discourage growth and efficiency, it is advisable that these sectors are privatized for maximum productivity.
The govt. intervention you are talking about in the U.S. now is a temporary measure. It is a bailout, not a nationalization as "our enemies" would like to call it. as soon as this institutions are stabilized, the FED will secede its interest, and perhaps only maintain an oversight role... |
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Janko
Gambia
1267 Posts |
Posted - 22 Sep 2008 : 14:04:12
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Kay,
interestingly it is the subsidized private products that dumped prices and killed the local industries in the developing countries, hence the conditions lied by WB/IMF was the governments should not subsidize local production, whiles Europe and America continued to subsidize their local industries.
Secondly, what I meant by a complete circle is; an industry is developed with taxpayers’ money and when it becomes lucrative it is privatised for as long as it makes profit, but as soon as it starts loosing big money it goes back to the taxpayer…..again and so fort. So, call it bailing out, taking over or socialist, it comes to the point where the state/taxpayer takes responsibility.
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Clean your house before pointing a finger ... Never be moved by delirious Well-wishers in their ecstasy |
Edited by - Janko on 22 Sep 2008 14:05:48 |
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kayjatta
2978 Posts |
Posted - 25 Sep 2008 : 08:34:39
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| Santafara, what's the matter with these "Democrats", they are blocking the $700 billion ? |
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njucks
Gambia
1131 Posts |
Posted - 25 Sep 2008 : 10:31:54
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quote:
Originally posted by kayjatta
.......... It is a bailout, not a nationalization as "our enemies" would like to call it.
enemies? are you planning another war. on who/what? its nationalisation, if not they should allow the companies to go burst.
i would prescribed as the World Bank does in developing countries, ''STRUCTURAL ADJUSTMENT'' together with an Economic Recovery Plan.
They claim to be the experts on countries having financial trouble yet i havent seen them all week |
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Hiz Princess
United Kingdom
464 Posts |
Posted - 26 Sep 2008 : 11:37:37
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This is a disgrace while the backroom staff cleaners and catering staff and all the other people that have been trod on and worried about their futures these vulutures are being rewarded.
Up to 10,000 staff at the New York office of the bankrupt investment bank Lehman Brothers will share a bonus pool set aside for them that is worth $2.5bn (£1.4bn), Barclays Bank, which is buying the business, confirmed last night.
The revelation sparked fury among the workers' former colleagues, Lehman's 5,000 staff based in London, who currently have no idea how long they will go on receiving even their basic salaries, let alone any bonus payments. It also prompted a renewed backlash over the compensation culture in global finance, with critics claiming that many bankers receive pay and rewards that bore no relation to the job they had done.
http://www.independent.co.uk/news/business/news/fury-at-25bn-bonus-for-lehmans-new-york-staff-937560.html
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kayjatta
2978 Posts |
Posted - 26 Sep 2008 : 13:03:55
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| That is very true Hiz. |
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kaanibaa
United Kingdom
1169 Posts |
Posted - 26 Sep 2008 : 14:21:46
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I remember posting in response to topic on the possible collapse of the world economic areas as perceived and there was a reply that this would not happen on that side of river Jordan. Well it seems that the huge walls of Wall Street and other economic forums are just waiting for a whistle blow to crumble . This was about what happens to poor economies such like my Gambia which I liken to a snake on the ground ha! ha! ha!. When they fall the rubble would be so huge , no wonder the mad scramble for saving the backside of those sleek goons, who live on an illusive status of riches/affluence, which seems to be sliding out of control, fueled as I tend to believe by utter human greed. I have heard some messengers calling this Armageddon , the end of the American imperialism etc.May God save us all.
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kayjatta
2978 Posts |
Posted - 26 Sep 2008 : 14:32:27
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| Indeed "the bigger they, the harder they fall", Jimmy Cliff. Of course greed is a big player in all this. Also the crooked lending practices, especially the so-called ARM (Adjusted Rate Mortgage), and our overall dependence on credit for everything, at some point will have to bust ... |
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