Meltdown

[ezodisy]

 

This has more to do with fairness than being self-righteous.  Again, if you have more money than you know what to do with, you will not be hanging out in this forum.  Lets face it, why shouldn't some tycoons in your country not pay their fair shares of taxes?  This is not an American or European issue.  The Swiss have done this for too long - helping the tax cheats to avoid paying their fair shares of taxes to their countries ...

Fairness? Is that the word you use to justify meddling into other people's business? typical

[BachQ]

California no longer worst housing market



Here's how February's bottom 10 shapes up:

    * Nevada, -26.19%
    * California,  -25.80%
    * Arizona, -21.14%
    * Florida,  -18.75%
    * Rhode Island, -17.26%
    * Washington,  -12.70%
    * Oregon, -11.28%
    * Illinois,  -10.48%
    * Maryland,  -9.89%
    * Michigan, -9.66%
    * New Hampshire, -9.39%
    * Minnesota,  -9.31%

[BachQ]

Seriously, I don't see a problem with US monetary policy:

[BachQ]

NJ sues Lehman execs for fraud to recoup state funds

[BachQ]

http://in.reuters.com/article/oilRpt/idINN1729465720090317?pageNumber=1&virtualBrandChannel=0

L.A./Long Beach Feb port cargo down 36.6 pct yr/yr

LOS ANGELES, (Reuters) - February loaded oceangoing cargoes at the side-by-side ports of Los Angeles and Long Beach fell 36.6% from the previous February, the two ports showed in separate reports.

The slowdown for February is much more pronounced than it was in January, when the year-on-year decrease in cargo traffic at the two Southern California ports was 18.7 percent.

The ports are the two busiest in the United States, handling more than 40 percent of imported consumer goods.

The two ports showed inbound cargoes down 38.8 percent and outbound cargoes down 32.2 percent in February 2009 from February 2008.

The traffic fell as "consumer sales are down due to high unemployment rates," according to the Port of Los Angeles' report, which was issued last week.

The Long Beach report, issued on Tuesday, showed inbound cargo for February down a whopping 43.3 percent.

"Over the last 20-something years, we haven't had too many declines and surely not on the order we are seeing now," said port spokesman Art Wong.




                   Feb. 09     Feb. 08     Change
Loaded Inbound     149,299     263,231     -43.3%
Loaded Outbound     92,781     147,275     -37.0%
Empties             75,962     119,193     -36.3%
TOTAL (T.E.U.)     318,042     529,699     -40.0%

[BachQ]

Fibo, some time if you have 80 minutes to spare there's an outstanding 8 part Schiff lecture here which without doubt is the best thing I've heard from him, funny and brilliant

http://www.youtube.com/watch?v=eSVpio-3eBU

Thank you, I will watch this tonight and report back. 

I still need to watch that 4th clip where Marc Faber mentions WAR!

[ezodisy]

Here's how February's bottom 10 shapes up:[/url]

    1) Nevada, -26.19%
    2) California,  -25.80%
   

that's funny. Those are the two states I got my real estate licenses in -- Nevada at 18, and California a year later. I remember how the NV market was booming back then in '98, and now I wouldn't be surprised by ghosttowns and dozens upon dozens of empty lots all over. What a sad state of affairs that is.

Nice chart by the way. lol

[Coopmv]

Fairness? Is that the word you use to justify meddling into other people's business? typical

I bet your government is only too eager to join the US and the EU in cracking the whip on the tax cheats from your country ...   

[Coopmv]

It is better late than never

Banking secrecy remains in question, despite government assurances
© Danièle LudwigCourt ruling undermines tax evasion policy
by Malcolm Curtis

Geneva - 19 March 2009 | 10:50

A banking lawyer is worried about a recent Swiss court decision that upholds the right of a Swiss bank to pass on account details of an American client to US authorities based on a blanket request for information about certain kinds of taxpayers. The ruling appears to uphold the kind of "fishing expeditions" explicitly ruled out by Switzerland's government under its new policy, intended to meet OECD concerns about tax evasion.

Bern is ruling out "fishing expeditions" by other governments seeking to track down tax evaders from their own countries with bank accounts in Switzerland, but a Geneva lawyer says a recent Swiss court ruling involving US taxpayers appears to have already approved such activity.

Under pressure from countries such as the United States and Germany, the Swiss President Hans-Rudolf Merz last week announced that the federal government was adopting OECD standards allowing for the exchange of tax information with other countries "in individual cases where a specific and justified request has been made."

The government said its new tax policy would maintain banking secrecy and not allow for general requests, commonly known as "fishing expeditions." But lawyer Henric Immink told Swisster a court ruling last week involving an American with a UBS account appeared to have allowed just that under the existing tax treaty between Switzerland and the US.

"That is scary to me," said Immink, a Geneva lawyer who specializes in banking law. The Federal Administrative Tribunal ruled that the US was within its rights in asking UBS to furnish a list of American clients who fit a certain class – those who set up structures, companies or trusts in Switzerland. Immink said the American request, which did not involve the specific names of clients, looked "very closely" like a fishing expedition.

The tribunal rejected an appeal made by an American client of UBS whose name had been sent onto US authorities. Although the decision does not set a precedent – each case is judged on its own merits – it appears to open the door to sweeping general requests from the American government for the banking details of US citizens, Immink said.

This decision "in the end it is very bad for our financial base," he said, referring to the Swiss banking industry.

Faced with the prospect of potentially losing its licence to conduct business in America, UBS, Switzerland's largest bank, agreed to pass on to US authorities the names of 250 to 300 American clients as part of an agreement to avoid prosecution for tax fraud. The bank also agreed to pay the government 780 million dollars.

The decision to pass on the names, approved by FINMA, Switzerland's banking authority, has led to a political storm, with concerns raised about the future of banking secrecy.

Other observers remain unsure about whether the Swiss government's move to change its policies on tax evasion will remove pressure for changes aimed at Switzerland's banking industry from countries such as the US and Germany. The government's policy no longer distinguishes between tax fraud – which in Switzerland has typically involved criminal activity such as forging documents – and tax evasion.

"The jury's still out," Martin Naville, CEO of the Swiss-American Chamber of Commerce, told Swisster when asked whether the government's policy change will satisfy critics. Naville said called the policy change "a good move" but said it is unclear whether countries such as Germany and the US will put extra pressure on Switzerland. A lot will depend on what happens in other countries targeted as "tax havens," Naville said.

While Switzerland has agreed to cooperate on tax information, it is maintaining its banking secrecy laws, dating from 1934, that enshrine bank-client confidentiality. "I think everybody has a right to privacy," Naville said, adding that holders of Swiss bank accounts should be treated as "innocent until proven guilty."

In addition to the information it has already obtained from UBS, the US justice department has launched legal action to obtain details of the accounts of more than 50,000 Americans with accounts at UBS, Switzerland's largest bank.

Naville said he believes this a specific case that follows an admission by the bank that its employees helped Americans evade paying taxes. This case should not be extended to a blanket request by the American government for information about all Swiss accounts held by American citizens, he said.

The Swiss government changed its policy on tax information under pressure from OECD member countries, who last fall called for the development of a blacklist of countries failing to show transparency in its banking practices. Angel Gurria, OECD secretary general, welcomed the changes outlined by Switzerland and other countries such as Austria, Luxembourg, Singapore and Hong Kong.

"These announcements mark a fundamental change and an important moment in the history of international tax cooperation," Gurria said in a statement. But Germany's finance minister Peer Steinbrück has angered Switzerland's politicians by saying the Swiss responded to OECD pressure like "Indians fleeing the cavalry" and concerns linger that the German government – concerned about lost taxes - may seek tougher measures on Swiss banking transparency.

In the US, meanwhile, Michigan Senator Carl Levin has reintroduced a "Stop Tax Haven Abuse Act" aimed at stemming a loss of an estimated 100 billion dollars in "offshore tax dodges." Levin, who has called for the revocation of UBS's license to operate in the US, is also targeting US multinationals that have set up in countries such as Switzerland to avoid paying American taxes.

But Naville said the latest proposed legislation is "too complicated to pass" and is facing a lot of resistance from American politicians.

James Nason, spokesman for the Swiss Bankers Association, said if the American government was really concerned about US taxpayers hiding their identity behind phoney offshore shell corporations, it should look at the thousands of shell companies incorporated in Delaware, Nevada and other states that offer complete anonymity to beneficial owners. "There is quite a bit of hypocrisy there." 

On the issue of Swiss banking practices, Nason said that nothing will change for Swiss clients and the situation for foreigners will not change immediately. He noted that the Swiss government has agreed to renegotiate the double taxation treaties it has with more than 70 countries. These will be ratified by parliament and "may be subject to a referendum," Nason said.

He said that while no Swiss bank can have a "sustainable model" that relies solely on client confidentiality, respect for privacy is one of the legs upon which the banking industry is built, along with security, stability and competence. "Take one leg away and the industry would wobble," he acknowledged.

[Coopmv]

Gee, the Swiss are tripping all over themselves trying to negotiate with a bankrupt US?

Swiss to negotiate tax cooperation with US
Swiss government to start negotiating tax cooperation with US
Wednesday March 25, 2009, 1:37 pm EDT
     
BERN, Switzerland (AP) -- The Swiss government said Wednesday it would immediately start negotiating ground rules with the United States and Japan on how Switzerland will help them pursue alleged tax evaders with money in Swiss banks.

Switzerland will refuse to hand over banking information unless the other countries present compelling evidence of tax evasion by specific individuals, Swiss President Hans-Rudolf Merz said.

Negotiations with European countries will begin later, Merz said.

The Swiss government announced earlier this month that it will cooperate in international tax investigations, breaking with a long-standing tradition of protecting wealthy foreigners accused of hiding billions of dollars.

Switzerland has come under intense pressure, in particular from the United States, Britain, France and Germany. Most recently Switzerland has been involved in a dispute with the U.S. over wealthy Americans who have assets in its biggest bank, UBS AG.

Merz said that U.S. Treasury Secretary Timothy Geithner had called him within hours of his announcement of cooperation on March 13 and asked how the country was going to implement the move.

"Of course he's interested in starting as soon as possible and we have no problem with that," Merz told reporters in the capital of Bern.

Switzerland said it will adopt standards set in 2000 by the Paris-based Organization for Economic Cooperation and Development for countries working together against tax evasion.

The government has said it will include the OECD standards in tax treaties it holds with the U.S., Japan, European and other countries.

Merz said he did not know how long negotiating the agreement with the U.S. would take, but that it could be difficult.

"It's not something you do in two weeks," he said.

Japan is among the first countries Switzerland will deal with because negotiations were already under way before the Swiss government changed its position, Merz said.

[Coopmv]

UBS certainly does not look that much better than Citigroup. 

Risks Abound at UBS
by: Robert Maltbie March 24, 2009 | about stocks: BAC / BCS / C / DB / GS / SCGLY.PK / UBS     
Robert Maltbie

Risks abound on UBS's balance sheet, off the balance sheet, and across the pond. Yet, UBS trades at an astonishing premium to its peers. We are initiating a SELL rating.

INVESTMENT THESIS

Despite its de-risked balance sheet, UBS faces significant credit exposure to troubled assets, along with associated counterparty risk on insured and hedged products.

UBS trades at a huge premium to its peers when comparing earnings and book multiples. We expect its multiple to contract as further losses and write-downs mount in the face of a weakening global economy.

Our price target is based both on historical and peer group price-to-book multiples, from which UBS currently trades at an 81% premium.

Our forecast for 2009 is below the current consensus. With sustained profitability in question for 2009, even our bearish forecast could prove to be too positive.

RISKS TO OUR SHORT CALL

Like many governments around the world, the Swiss National Bank intervened on UBS's behalf last year, and could step in to assist UBS in the future if needed.

There is an all out blitz on short positions, including changes to up-tick rules, mark-to-market accounting, and speculation of government purchases of troubled assets. Whether perception or reality, headline risks are a plenty.

SUMMARY

Without question, the biggest banks in the world made some hideous decisions over the last few years. Even when they made seemingly good decisions, such as buying insurance on questionable securities, they lost money since many of these hedged and insured positions proved worthless themselves. By far the worst example of insurance gone wrong is AIG.

Reading through AIG's SEC filings is like watching a spoof on a horror movie – the blood is real, but it's hard not to laugh. In some instances, AIG could not even estimate its loss exposure to some of its special purpose entities. When AIG could estimate its potential losses, the numbers were often in the hundreds of billions. Unfortunately for many European banks, UBS included, AIG ventured across the pond to sell similar faux insurance as it did to US banks. As Chairman Bernanke illustrated last Sunday on 60 Minutes, bailing out AIG was a global necessity, despite the bitter after taste that is left after using tax payer money to attempt to fix asinine decisions.

This past Sunday, AIG released a document that detailed where the bailout money was going in the 4th quarter. Many of the expected names were on the list, including Goldman Sachs (GS), Bank of America (BAC), Merrill Lynch, and Citigroup (C). Yet, some of the biggest payouts (from September to December of 2008) went to non-US banks. Barclays (BCS) received over $8 billion; Societe Generale (SCGLY.PK) received over $12 billion; and Deutsche Bank (DB) received over $13 billion. UBS, while not as extreme, received $5 billion from AIG over this period. Nevertheless, in UBS's recently filed 20-F (annual filing), the company specifically mentions continued risks and potential further writedowns related to unreliable credit protection and deteriorating creditworthiness of monoline and other providers of credit protection.

While many US banks have been hit hard with writedowns, losses, and resulting drops in stock prices, many European banks continue to trade at premium multiples despite facing similar if not more extreme credit risks and losses. Despite losing over 20 billion CHF last year, issuing a cautious forecast for 2009, and facing existing exposure to credit losses and revaluations, UBS trades at a 105% premium to its peers' average price-to-book multiple (P/B), and a 18% premium to the group's average price-to-earnings multiple (P/E) for 2009. Furthermore, we believe UBS' core businesses will continue to struggle in the year ahead, particularly given the company's current cost structure, which does not match UBS's assets under management (AUM) or business activity.

We are issuing a 2009 earnings forecast well below the current consensus of $1.22. Our We are issuing a price target based on a lowered P/B multiple, decreasing consensus earnings expectations, and a reflection of the company's existing exposure to toxic assets in Europe and the US

[Coopmv]

Thank you, I will watch this tonight and report back. 

I still need to watch that 4th clip where Marc Faber mentions WAR!

I am watching with interest at how the Germans declare their financial war on the Swiss over this banking secrecy ...

[Florestan]

Merz said that U.S. Treasury Secretary Timothy Geithner had called him within hours of his announcement of cooperation on March 13 and asked how the country was going to implement the move.

How sweet! The US Treasure Secretary (!) calls the President (!!) of a sovereign state (!!!) to ask him how his country is going to execute a US order... 

[ezodisy]

Gee, the Swiss are tripping all over themselves trying to negotiate with a bankrupt US?

there's a difference between tax evaders and the rest. It's amazing how you try to twist information.

How sweet! The US Treasure Secretary (!) calls the President (!!) of a sovereign state (!!!) to ask him how his country is going to execute a US order... 

yeah, well, guys like that run Coop's country, and he thinks they're great. lol

[BachQ]

that's funny. Those are the two states I got my real estate licenses in -- Nevada at 18, and California a year later. I remember how the NV market was booming back then in '98, and now I wouldn't be surprised by ghosttowns and dozens upon dozens of empty lots all over. What a sad state of affairs that is.

Nice chart by the way. lol

The downward pressure on Nevada's & California's home prices is immense, with foreclosures accounting for almost 60% of home sales.  Arizona is just as bad.  This house on Happy Valley Road (Scottsdale, AZ) is selling for $15M, but the cost to build it was $30M ($30M replacement cost).



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[BachQ]

Japan Exports Drop Record 49.4%; Shipments to the U.S. tumble an unprecedented 58.4%; automobile exports tumble 70.9% from a year earlier.

[BachQ]

UK's green energy plans in disarray as wind farm giant slashes investment



Britain's ambition to become a global leader in renewable energy suffered a major setback last night when the world's biggest investor in wind power said that it was slashing its investment programme.  The announcement comes less than two months after ministers backed a string of huge gas-fired power stations, prompting concern that the Government cannot fulfil its promise of a green energy revolution.

Iberdrola Renewables' decision to cut its investment in Britain by more than 40 per cent, or £300 million — enough to build a wind farm powering 200,000 homes — is the latest obstacle to Gordon Brown's target of generating 35 per cent of the country's electricity from renewable sources by 2020. ...

[BachQ]

ABC News: Gerald Celente Predicts Economic Armageddon by 2012

http://www.youtube.com/v/Q2qDW34Fr64

[BachQ]

US jobless claims set new record; 4Q GDP sinks to a 6.3% annual contraction -- The total number of people claiming benefits jumped to 5.56 million, worse than economists' projections of 5.48 million, a ninth straight record and the highest total on records dating back to 1967.

[Lethevich]

UK's green energy plans in disarray as wind farm giant slashes investment



Britain's ambition to become a global leader in renewable energy suffered a major setback last night when the world's biggest investor in wind power said that it was slashing its investment programme.  The announcement comes less than two months after ministers backed a string of huge gas-fired power stations, prompting concern that the Government cannot fulfil its promise of a green energy revolution.

Iberdrola Renewables' decision to cut its investment in Britain by more than 40 per cent, or £300 million — enough to build a wind farm powering 200,000 homes — is the latest obstacle to Gordon Brown's target of generating 35 per cent of the country's electricity from renewable sources by 2020. ...

The idiocy will never end... This is all down to the POS government doing almost nothing to encourage the industry. Any change of leadership would be perfect now, even UKIP ( ) might be less inept than Brown and Co.