venerdì 22 febbraio 2013

Economy. Journey to the roots of the crisis, European banks have been up to?

A black cloud over the world

The chronicle and political force us daily to deal with words and concepts related to economic matters. Terms and expressions borrowed from the colorful jargon of finance or economic doctrine, have become commonly used on the basis of the violent changes in place for some years, but their meaning is often shrouded in the mists for those not into the matter.


Never like today is very timely, as a result of recent developments in the case of European banks, hear about "derivative" investments classified as financial products created in 1920 and in the years to come, purchased by banks around the world. It should, however, do so clearly on the subject to understand what a derivative and by whom it has been used over the years by dragging the entire global financial system to the economic meltdown. The term "derivative" or "derivate" refers to a financial product identified as speculative title contains within itself a large number of subtitles at great risk. This appears to be the result of a finance called "creative" that produced disastrous effects on markets and financial centers defined strategic, among them New York and London. The already dangerous product itself has become devastating when it has approached banks behaviors unclear and even little lawful. And 'the beginning of the new millennium that some of codeste banks gave start to what today we can clearly define "economic decline". It all started with the U.S. such as Fannie Mae and Freddie Mac, banks defined sisters, and the famous Lehman Brothers founded by two German brothers. Once again the "families" in American society are confirmed carriers of dangerous mishaps despite the same America you define in the eyes of the world, a big family.

So while Lehman Brothers was ordered by the General Court of the United States for misconduct in 2000, Fannie Mae and Freddie Mac specializzavano in the supply of subprime mortgages, outstanding loans granted without receiving any guarantees in this regard. Only in the period from 2002 to 2006 's provision of these loans has increased from $ 38 billion to 90. U.S. banks to protect savers become true generating and sellers of "bad economy."


Lehman Brothers is the name most frequently used in a negative way in economic history that goes from 2000 to 2008, a period in which the investment bank leading the United States will be declared bankrupt, September 16, 2008 due to insolvency, causing the biggest economic disaster of the financial crisis that has been recorded by the U.S. in 1929. This is despite Alan Greenspan, one of the best governors of the Central Bank of the United States, had cut interest rates the Fed at a record low of the last 45 years bringing the percentage of the one.

Events have also contributed to the fall of the world economy. The tragedy of the Twin Towers, September 11, 2001, and all outbreaks of wars that have resulted from it, have helped to drag the economy into the "financial storm". The term today is frequently used and is linked to the name of a Russian-born economist Nouriel Roubini, then unknown, but only predict two years in advance of the severe economic turmoil in September 2008. It 'just the story, with its disasters, to offer an additional side to creative financing and its toxic assets, effects of the derivative. With the destruction of the Twin Towers disappeared forever some of the best financial minds, settled just inside the two structures, which operated for commercial banks and monetary-financial companies with global interests.

Lehman Brothers and investment banks clones taking advantage of the special and delicate historical moment have flooded the market with additional financial toxic assets. E 'enough to consult the Federal Reserve data to verify the progressive and destructive course: the only period 2003 - 2007 subprime mortgages flowed from 332 billion to 1.3 trillion dollars.


In the course of just six years, Lehman Brothers rises exponentially in the sale of toxic assets in the enterprise involving unscrupulous banks of the affairs of other countries. The follow Japan's Nomura, today all over the papers for the scandal MPS, and many other sisters triggering that effect "domino" that currently can be seen on all financial markets from Europe and overseas and levied in those dominated by market economy .

Lehnman Brothers & C generated children and stepchildren who currently do not enjoy good health at all, in fact, need rigorous treatment to prevent their evil becomes even more serious in fact causing a further deterioration of the state of the world economy.

The action of this perverse financial world has brought with him, like a tsunami, other illustrious victims, in the insurance and real estate. AIG, a leading American insurance company, declared bankrupt in 2008, is one of these victims. Martyr also its own insurance of subprime mortgages. Following the collapse of Lehman Brothers the current Governor of the Federal Reserve Ben Bernanke, Greenspan's successor, it was the protagonist of the first operation to rescue the U.S. economy measure in evaluating the $ 750 billion, a figure of fact, far lower than that of loans issued and never guaranteed.

Unjustifiable myopia

And European banks as they reacted to the crisis? The German, English, Irish, French, Spanish, Belgian and Dutch to avoid bankruptcy by toxic assets held in the financial statements have been nationalized or acquired by the State with the pragmatic consequences for the debt of sovereign states. In front of this mess is a question of obligation: "Where were all these years supervisory bodies of central banks and national banks?" Answers will vary, but none, absolutely none, can never justify what for many years has happened, is happening and will happen unfortunately.

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