Wednesday, Jun 18, 2008

on a scale not seen since the 1930s

Bankingtimes: BIS warns of Great Depression

The Bank for International Settlements (BIS), the organisation that fosters cooperation between central banks, has warned that the credit crisis could lead world economies into a crash on a scale not seen since the 1930s. In its latest quarterly report, the body points out that the Great Depression of the 1930s was not foreseen and that commentators on the financial turmoil, instigated by the US sub-prime mortgage crisis, may not have grasped the level of exposure that lies at its heart.

Posted by malct @ 02:09 PM (1725 views) Add Comment

21 Comments

1. malct said...

47. d'oh said...
Why is it that discussions about such important articles as the one referring to reports from the BIS always end up in completely unprofitable Mayan/conspiracy arguments. It's beginning to annoy the heck out of me. S2R1 believes one thing, others believe something else. I don't really care...but I am just frustrated that what should be decent opportunities for serious economic discussion are just lost because comments are lost in the back and forth theological arguments. PLEASE, don't rise to the bait. Have a productive discussion about the underlying topic instead and adjourn these other debate to the forums.

Wednesday, June 18, 2008 01:48PM

Wednesday, June 18, 2008 02:10PM Report Comment
 

2. taffee said...

the great 1930's depression happened because it needed to happen......it was built on a credit bubble.

If it happens again it will be a necessary evil.

Wednesday, June 18, 2008 02:19PM Report Comment
 

3. cornishman said...

click here for link to article

Wednesday, June 18, 2008 02:31PM Report Comment
 

4. malct said...

thanks cornishman good move

Wednesday, June 18, 2008 02:39PM Report Comment
 

5. sold 2 rent 1 said...

The further you look back in history the more you can see into the future.
So we can analyse the 1930s; that stops the false lead of a repeat of the 1970s

But can we look back further, say to the depression of the 1830s, or analyse the whole industrial revolution data.
What about the fall of Rome and other civilizations, what can we learn from them?

The moment you stop looking back is the moment you stop learning about the future, and all you will be doing is guessing.
It is all about recognition of patterns.

Wednesday, June 18, 2008 03:01PM Report Comment
 

6. malct said...

ah yes s2r1 but, today's communications technology can be instant on a global scale, whereas the pre-conditioned attitude and belief system of those affected and involved has never been more sophisticatedly manipulated and removed from reality, dulling the response of many to the point of disbelief. That makes 'now' different and determines what will 'be' What comes after is another matter.

eg and quote - As 1920s spin pioneers like Ivy Lee and Edward Bernays gained more experience, they began to formulate rules and guidelines for creating public opinion. They learned quickly that mob psychology must focus on emotion, not facts. Since the mob is incapable of rational thought, motivation must be based not on logic but on presentation.

The Doors of Perception and the Language of Spin - http://www.thetruthseeker.co.uk/article.asp?ID=185

I'm sure some people think blair invented spin (politcal)

Wednesday, June 18, 2008 03:24PM Report Comment
 

7. d'oh said...

S2R1 - Agreed. I find a lot of the current mainstream media commentary on the current crisis rather unsatisfactory. Everything has to be compared to something recent, when the actual situation is perhaps more similar to crises further in the past. What's really depressing is that Tacitus talks about Rome's 1st century house price crash created by, you guessed it, a tightening of credit - the emperor gave everyone 12 or 18 months (if I recall correctly) to untangle their credit obligations. Some things never change.

Wednesday, June 18, 2008 03:25PM Report Comment
 

8. Hotairmail said...

Very dubious article. I looked through it when it was posted on the forum. I could find no reference to what they were describing.

Read the Reader comments and you will find this corroborated.

It is just a dodgy blog.

Wednesday, June 18, 2008 03:55PM Report Comment
 

9. cornishman said...

"They learned quickly that mob psychology must focus on emotion, not facts. Since the mob is incapable of rational thought, motivation must be based not on logic but on presentation."

something Brown does not seem to appreciate. He might think he's good at working out what is 'right' - but it isn't worth anything if he can't 'sell' the idea to the people. Blair might have irritated the hell out of him and been less competent - but he was infinitely better at selling ideas.

Wednesday, June 18, 2008 04:24PM Report Comment
 

10. planning4acrash said...

The current crisis is not necessary, it is only an inevitable response to a boom generated by inflated money supply. The boom was planned to put us in debt/usery, the crash is intended so that the b(w)anks that print money can steal OUR devalued assets.

Wednesday, June 18, 2008 05:33PM Report Comment
 

11. planning4acrash said...

The Great Depression was actually the great American robbery. B(w)ankers, after flooding America with debt bankrupted it by cutting the money supply, by monetising the national debt, they bought congress and the President. Hence today's rabid corruption.

Wednesday, June 18, 2008 05:37PM Report Comment
 

12. planning4acrash said...

The recent boom, wars and subsequent booming debt were put on The world because prosperity threatened b[w]anker's grip on our 'economies'.

Wednesday, June 18, 2008 05:40PM Report Comment
 

13. icarus said...

malct - given your scepticism about central banks I'm surprised you're quoting the central banks' central bank.

Wednesday, June 18, 2008 05:58PM Report Comment
 

14. malct said...

icarus - valid point - but -

know your enemy! - fairly obvious? - perhaps not.

Look into the BIS history and you will find parliamentary notes questioning the continued involvement of a Bank of England gov during WW11 - thats two not eleven - in BIS, Montague Norman. Same chap gave Hitler Cech gold, some of which came back to London as bombs.

The enemy within - England and Europe !

What ever the truth really is, it's clearly not what we have been told. - Why is that?

Wednesday, June 18, 2008 06:09PM Report Comment
 

15. icarus said...

malct - I have looked into BIS history. Why was Switzerland neutral in WWII? Because that was where the bankers from countries from both (all?) sides in the war met in friendship. Germany was occupied by US capital and German real assets were pledged against a big mortgage held in the US (the Young Plan). This gave both sides common interests. Helmut Schacht of the Reichsbank was usually there with reps from the BoE, the Fed and the Banque de France. The German cartels that powered Hitler's war machine were organised from there..... but I'm sure you're aware of all that and more.

Wednesday, June 18, 2008 06:31PM Report Comment
 

16. malct said...

spot on icarus - I'm moved that you have checked this stuff out.

so is that an agreement in principle or a honey trap?

when we can agree that gives us ordinary people strength when we fight amongst ourselves we become weeker.

What is it to be? Can we merge our views? not just you and me - bu66er they're whatching! lol

why switz? not Austria?

Croatia,?

Wednesday, June 18, 2008 06:56PM Report Comment
 

17. icarus said...

malct - best to name names, dates, places, organisations. Anybody who talks about this stuff in general terms is a conspiracy loon. Why switz - good chocolate and they know how to keep a secret.

Wednesday, June 18, 2008 07:05PM Report Comment
 

18. sold 2 rent 1 said...

Banking is at the heart of all conspiracy theories.

Wednesday, June 18, 2008 07:21PM Report Comment
 

19. icarus said...

s2r1 - omit "theories".

Wednesday, June 18, 2008 07:33PM Report Comment
 

20. malct said...

18. icarus said...
s2r1 - omit "theories".

I like that - BUT subsitute FACTS

Wednesday, June 18, 2008 07:46PM Report Comment
 

21. sold 2 rent 1 said...

Sounds good

Wednesday, June 18, 2008 09:46PM Report Comment
 

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