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PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT

 
Anonymous Coward
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11/17/2008 06:35 PM
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PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
[link to www.telegraph.co.uk]

Volcker issues dire warning on slump
Paul Volcker, the former chairman of the US Federal Reserve, has warned that the economic slump has begun to metastasise after a shocking collapse in output over the past two months, threatening to overwhelm the incoming Obama administration as it struggles to restore confidence.

By Ambrose Evans-Pritchard
Last Updated: 10:39PM GMT 17 Nov 2008

"What this crisis reveals is a broken financial system like no other in my lifetime," he told a conference at Lombard Street Research in London.

"Normal monetary policy is not able to get money flowing. The trouble is that, even with all this [government] protection, the market is not moving again. The only other time we have seen the US economy drop as suddenly as this was when the Carter administration imposed credit controls, which was artificial."

His comments come as the blizzard of dire data in the US continues to crush spirits. The Empire State index of manufacturing dropped to minus 24.6 in October, the lowest ever recorded. Paul Ashworth, US economist at Capital Economics, said business spending was now going into "meltdown", compounding the collapse in consumer spending that is already under way.

Mr Volcker, an adviser to President-Elect Barack Obama and a short-list candidate for Treasury Secretary, warned that it is already too late to avoid a severe downturn even if the credit markets stabilise over coming months. "I don't think anybody thinks we're going to get through this recession in a hurry," he said.

He advised Mr Obama to tread a fine line, embarking on bold action with a "compelling economic logic" rather than scattering fiscal stimulus or resorting to a wholesale bail-out of Detroit. "He can't just throw money at the auto industry."

Mr Volcker is a towering figure in the US, praised for taming the great inflation of the late 1970s with unpopular monetary rigour. He is no friend of Alan Greenspan, who replaced him at the Fed and presided over credit excess that pushed private debt to 300pc of GDP.

"There has been leveraging in the economy beyond imagination, and nobody was saying we need to do something," he said. "There are cycles in human nature and it is up to regulators to moderate these excesses. Alan was not a big regulator."

Even so, he said the arch-culprit was the bonus system that allowed bankers to draw forward "tremendous rewards" before the disastrous consequences of their actions became clear, as well as the new means of credit alchemy that let them slice and dice mortgage debt into packages that disguised risk.
Anonymous Coward
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11/17/2008 06:39 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
Let's bamboozle the peons with words they don't understand.
Lapis
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11/17/2008 06:43 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
why does the real hard hitting shit only appear in foreign newspapers? am i the only one who has noticed this?
Anonymous Coward
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11/17/2008 06:45 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
why does the real hard hitting shit only appear in foreign newspapers? am i the only one who has noticed this?
 Quoting: Lapis 539211


Because the idiots in this country watch too much TV
Zone 5

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11/17/2008 06:52 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
Thejumping
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11/17/2008 06:55 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
Ladies and Gentlemen, the handwriting is on the wall. Let no one say that it caught people unaware. The western financial world has ended. The wheels are stopping. Humpty dumpty was pushed.
all authority is given to me
Anonymous Coward
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11/17/2008 06:55 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
HOLY SHIT !!
HE IS THE FIRST SR. OFFICIAL TO SPEAK OUT !!
damned
hiding
Treasure Bound

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11/17/2008 06:55 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
listening to alex jones refeed and he's got someone on saying it used to cost something like $150,000.00 to ship a cargo laden ship from China to US. Says now the asking price is somewhere around $4000.00 Says grain and shipping containers are sitting on the docks because no one can get letters of credit to move the products. Anyone in shipping that can confirm this?
"We don't inherit the earth from our ancestors, we borrow it from our children"--Native-American proverb

People were created to be loved while things were created to be used. The reason the world is in chaos is that, things are being loved and people are being used

:Treasures122:

In Solidarity with Janey
[link to i25.photobucket.com]
Omega

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11/17/2008 06:56 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
Don't fuck with Volcker he's a hawk.

I noticed he avoided the "D" word.

Me thinks in a few months he will have to modify his position.

From bad.

To catastrophic.
Handguns are a skill; shotguns an art; rifles a science.
_____________________________________
Democracy is two wolves and a sheep voting on whats for dinner.

Disarmament is the precursor to Genocide.

Better to take action now rather than chances later. Your choice.
Mistacoo

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11/17/2008 06:57 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
Thejumping
 Quoting: Zone 5


I like this one. Fits the situation perfectly.
When people lose everything and have nothing to lose, they lose it!
Treasure Bound

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11/17/2008 06:58 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
listening to alex jones refeed and he's got someone on stating it used to cost $150,000.00 to ship a cargo laden ship from China to US. States the asking price now is somewhere around $4000.00. States there is containers of grain and goods just sitting on docks because no one can get letters of credit to move the product. Anyone in shipping that can confirm this?


^^^^^sorry for the double post, my bad
"We don't inherit the earth from our ancestors, we borrow it from our children"--Native-American proverb

People were created to be loved while things were created to be used. The reason the world is in chaos is that, things are being loved and people are being used

:Treasures122:

In Solidarity with Janey
[link to i25.photobucket.com]
Anonymous Coward
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11/17/2008 06:59 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
:Thejumping:
 Quoting: Zone 5


newsflash

Volker said: "The Empire State index of manufacturing dropped to minus 24.6 in October, the lowest ever recorded."

--

The CAUSE of the entire destruction of the global economy is laid at the feet of THE EMPIRE STATE that carried out the false flag attack of 911.

Now the chickens have come home to roost.

The WHOLE WORLD IS WATCHING.

Will justice be done or not?

No justice = further destruction of the global economy.
Anonymous Coward
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11/17/2008 07:01 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
December-january are going to be interesting months !!
Never seen before !!
hiding
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11/17/2008 07:02 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT



"What this crisis reveals is a broken financial system like no other in my lifetime," he told a conference at Lombard Street Research in London.

 Quoting: Anonymous Coward 553292


Well, considering he lived through the Great Depression....It sounds like we're scroomed.

Best bet now is to kill the FED,say we're bankrupt, then have Treasury start a new U.S. CURRENCY (not the Amero). Basically "reset".
Enigma

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11/17/2008 07:04 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
listening to alex jones refeed and he's got someone on saying it used to cost something like $150,000.00 to ship a cargo laden ship from China to US. Says now the asking price is somewhere around $4000.00 Says grain and shipping containers are sitting on the docks because no one can get letters of credit to move the products. Anyone in shipping that can confirm this?
 Quoting: Treasure Bound



Hey TB that is true...

stacking up at the ports...

I'm gonna build a trailer over the holidays that will tow the Connex boxes...

gonna buy a few for secure remote storage, but don't want to pay anyone to move them...

gonna build my own transport trailer, completer with winch, rollers and brakes... ( never know when you'll need to move a FULL ONE...
Omega

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11/17/2008 07:07 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
listening to alex jones refeed and he's got someone on stating it used to cost $150,000.00 to ship a cargo laden ship from China to US. States the asking price now is somewhere around $4000.00. States there is containers of grain and goods just sitting on docks because no one can get letters of credit to move the product. Anyone in shipping that can confirm this?


^^^^^sorry for the double post, my bad
 Quoting: Treasure Bound




Might as well start here,lol.....


[link to www.nakedcapitalism.com]





Saturday, November 15, 2008

Yet More Trade Finance Worries (Not for the Fainthearted)

Readers may know we have been concerned about the dramatic fall in shipments of basic materials, as reflected in the collapse of the Baltic Dry Index. This in turn, as we have also stressed, is in large measure to the difficulty of obtaining trade finance, in particular letters of credit.

A very good post at London Banker, "Systemic Risk, Contagion and Trade Finance - Back to the Bad Old Days," (hat tip reader Bruce) gives a very good recap of the problem and the ramifications. Key excerpts:

"We are now starting to see the contagion effects of the current liquidity crisis feed through to the real economy...

The recent 93 percent collapse of the obscure Baltic Dry Index – an index of the cost of chartering bulk cargo vessels for goods like ore, cotton, grain or similar dry tonnage – has caused a bit of a stir among the financial cognoscenti. What is less discussed amidst the alarm is the reason for the collapse of the index – the collapse of trade credit based on the venerable letter of credit.

Letters of credit have financed trade for over 400 years. They are considered one of the more stable and secure means of finance as the cargo is secures the credit extended to import it. The letter of credit irrevocably advises an exporter and his bank that payment will be made by the importer's issuing bank if the proper documentation confirming a shipment is presented. This was seen as low risk as the issuing bank could seize and sell the cargo if its client defaulted after payment was made. Like so much else in this topsy turvy financial crisis, however, the verities of the ages have been discarded in favour of new and unpleasant realities.

The combination of the global interbank lending freeze with the collapse of the speculative, leveraged commodity price bubble have undermined both the confidence of banks in the ability of a far-flung peer bank to pay an obligation when due and confidence in the value of the dry cargo as security for the credit if liquidated on default. The result is that those with goods to export and those with goods to import, no matter how worthy and well capitalised, are left standing quayside without bank finance for trade.

Adding to the difficulties, letters of credit are so short term that they become an easy target for scaling back credit as liquidity tightens around bank operations globally. Longer term “assets” – like mortgage-back securities, CDOs and CDSs – can’t be easily renegotiated, and banks are loathe to default to one another on them because of cross-default provisions. Short term credit like trade finance can be cut with the flick of an executive wrist.

Further adding to the difficulties, many bulk cargoes are financed in dollars. Non-US banks have been progressively starved of dollar credit....

Fixing this problem shouldn't be left to the Fed. They aren't going to make it a priority. Indeed, their determination to accelerate the payment of interest on reserves and then to raise that rate to match the Fed Funds target rate indicates that the Fed are more likely to constrain trade finance liquidity rather than improve it. Furthermore, the Fed may be highly selective in its allocation of dollar liquidity abroad, prejudicing the economic prospects of a large part of the world that is either indifferent or hostile to the continuation of American dollar hegemony.

If cargo trade stops, a whole lot of supply chain disruption starts....

If cargo trade stops, the wheat doesn’t get exported. If the wheat doesn’t get exported, the mill has nothing to grind into flour. If there is no flour, the bakeries and food processors can’t produce bread and pasta and other foods. If there are no foods shipped from the bakeries and factories, there are no foods in the shops. If there are no foods in the shops, people go hungry. If people go hungry their children go hungry. When children go hungry, people riot and governments fall.

Everyone along the supply chain should worry about their children going hungry.

When that happens, everyone in governments should worry about the riots.

Controlling access to trade finance determines who loses their jobs, whose children go hungry, who riots, which governments fall....Trade finance is rapidly communicating the stress on bank liquidity to the real economy. It presents a systemic risk much more frightening than the collapsing value of bits of paper traded electronically in London and New York. It could collapse the employment, the well being and the political stability of most of the world’s population.
Handguns are a skill; shotguns an art; rifles a science.
_____________________________________
Democracy is two wolves and a sheep voting on whats for dinner.

Disarmament is the precursor to Genocide.

Better to take action now rather than chances later. Your choice.
Treasure Bound

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11/17/2008 07:08 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
christ this is getting to be major doomage for me!

This guy's name is Max Kaiser (?) and he is scaring the shit out of me. Says business is gonna grind to a halt in short order. Says 30% of the people of Iceland are trying to emmigrate to other countries because there's no food on the shelves. SHIOT
"We don't inherit the earth from our ancestors, we borrow it from our children"--Native-American proverb

People were created to be loved while things were created to be used. The reason the world is in chaos is that, things are being loved and people are being used

:Treasures122:

In Solidarity with Janey
[link to i25.photobucket.com]
Anonymous Coward
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11/17/2008 07:09 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
GOT MILK....AND SILVER ??
<October>

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11/17/2008 07:12 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
HOLY SHIT !!
HE IS THE FIRST SR. OFFICIAL TO SPEAK OUT !!
damned
hiding
 Quoting: Anonymous Coward 322321

Excellent! It's about time SOMEONE told the truth...! thumbs

Bad news indeed, but good news, as well...

Maybe...JUST maybe there will be people in charge of things who won't be LYING all the time!

We shall see... stoner
~~~~~~~~~~~~~~~
Fear is no policy and
surrender is not an option
~~~~~~~~~~~~~
Peace with Justice

~~~~~~~~~~~~~~~
ThePatriotMind

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11/17/2008 07:18 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
IT IS REAL easy to understand if you understand just this one thing ....

If teh people of the world in unison tried to pay back all their debt .... there would be ZERO MONEY left in the world becuase we have a debt based money sytem ....

well I believe people and businesses world over have realized almsot over night how the BANKING SYSTEM works and how it has been stealing the wealth of the world ....

and people are deciding in unison to stop spending ( borrowing) and instead SAVE ...

SAVING ENMASSE is the death NAIL to a FIAT BASED CURRANCY DESIGNED to steal the wealth of the world
Fighting and triggering liberals and SJW's in the trenches of their safe spaces since 2014

Signed,

The Patriot Mind
Anonymous Coward
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11/17/2008 07:24 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
MY TWO CENTS THEROY :

Paul Volker will try to expose Bush Adm. before january !!
There is a lot to know about Us Debt, bail outs , etc .
Deception and reality !!
Expect big surprises in many issues !!
TX PATRIOT
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11/17/2008 07:29 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
HOLY SHIT !!
HE IS THE FIRST SR. OFFICIAL TO SPEAK OUT !!
damned
hiding
 Quoting: Anonymous Coward 322321


Nothing more than...

PROBLEM

REACTION

SOLUTION....WELCOME THE GLOBAL FINANCIAL STEP OF THE NWO
Anonymous Coward
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11/17/2008 07:32 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT



"What this crisis reveals is a broken financial system like no other in my lifetime," he told a conference at Lombard Street Research in London.



Well, considering he lived through the Great Depression....It sounds like we're scroomed.

Best bet now is to kill the FED,say we're bankrupt, then have Treasury start a new U.S. CURRENCY (not the Amero). Basically "reset".
 Quoting: Anonymous Coward 552546


[link to messages.finance.yahoo.com]

Finger Over RESET Button

"...we are then compelled to strike the singularity of a monetary reset, where the monetary system of the United States fails.

That event has a near-certainty of producing a political failure in the nation at or near the same time.

History tells us that nations caught in this mess, if they pass the event horizon of monetary failure and are representative governments, never escape without passing through a totalitarian regime."
flatland
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11/17/2008 07:33 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
We do indeed live in interesting times
anonymous
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11/17/2008 07:37 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
this happened in the 80s ..shipping was reduced..fplks went broke on inflated everything..interest rates 12 percent by 1981 and gas was 126.00 a gallon from 35 cents a gallon 8 yrs earlier in 1973 .aahhhhh hyperinflation wrecked our buying power..by 1982 ...bussinesses began slowing or closing by 1983 ..it only got worse from there..stocks dropped for years..
Anonymous Coward
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11/17/2008 07:37 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
why does the real hard hitting shit only appear in foreign newspapers? am i the only one who has noticed this?
 Quoting: Lapis 539211


Unfortunately, if you watch stations like CNBC, all you hear is "we are near the bottom" type calls. Here in the US, they want to cheer us on to "BUY BUY BUY" when really the mantra should be "SAVE SAVE SAVE".

If it were not for "fringe" type websites like Godlikeproductions which points us to other opinions around the world, we'd be in the dark.

Thank God for the internet.
Nothig lef to scream
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11/17/2008 07:39 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
a little culture for all you pessimists.
<object width="425" height="344"><param name="movie" value=" [link to www.youtube.com] name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src=" [link to www.youtube.com] type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>
Anonymous Coward
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
basically. The wallstreeters and bankers and paulson set up this swindle. And now they're coming up with excuses on why the average person in the world has to give them more.
argilla11

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11/17/2008 07:41 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
This is becoming more frightening by the day...
Anonymous Coward
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11/17/2008 07:42 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
[link to www.bloomberg.com]
Anonymous Coward
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11/17/2008 07:45 PM
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Re: PAUL VOLCKER ISSUES DIRE WARNING : ECONOMIC SLUMP HAS METASTASISED - THAT'S A FUCKING UNDERSTATEMENT
The stupid americans believe anything anyonen on the boob tube says. Which are all lies for you morons.

The brush administration and corporations are ripping you off coming and going.

Stupid monther fracker americans. Americans deserve to go down the tubes they are so fracking stupid.





GLP