Iceland Rejects Icesave Bank Payback Plan

Icelanders have rejected a plan to pay back the British Government for money it lost over the collapse of the Icesave bank in 2008.

Secret Banking Cabal Emerges From AIG Shadows

(Bloomberg) -- The idea of secret banking cabals that control the country and global economy are a given among conspiracy theorists who stockpile ammo, bottled water and peanut butter. After this week’s congressional hearing into the bailout of American International Group Inc., you have to wonder if those folks are crazy after all.

Wednesday’s hearing described a secretive group deploying billions of dollars to favored banks, operating with little oversight by the public or elected officials.

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Comment: Actual Bloomberg headline!

Cold Senate reception for Ben Bernanke

The Massachusetts election storm is sending a few cold waves over the bow of the White House economic team — not to mention Federal Reserve Chairman Ben Bernanke.

In a matter of hours Thursday, 13 Democrats broke ranks with the Treasury over extending its financial bailout authority, and after a face-to-face meeting. Majority Leader Harry Reid was conspicuously silent on whether he would back Bernanke for a second term next week.

Treasury’s program survived the floor vote; Bernanke is still favored to win confirmation. But there’s a greater chill in the air, and with Bernanke’s term running out Jan. 31, the administration has yet to secure the 60 votes needed to cut off debate on his nomination.

Democrats had hoped to pin that down this week, with the chance of holding the final vote Friday. But then Republicans rode an anti-Washington wave in Massachusetts on Tuesday, and at a Democratic caucus the next day, senators vented their anger over a White House team seen as too close to banks and Wall Street.

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Is The U.S. Economy Being Tanked By Mistake or By Intent?

The government wants Americans to believe the greatest economic collapse in history was the result of ineptness and mistakes yet still have confidence in their financial institutions.

Should American bankers be let off the hook because they self-declare, before an investigational panel, that the failure of their newly invented risk swaps and other highly leveraged investment schemes was simply due to "mistakes"? Not malfeasance – just every-day mistakes? Bankers just fell asleep at the helm at a critical juncture in American history. Is that what we are being led to believe?

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Deadline Fast Approaching to Confirming Bernanke's Second Term

While the Senate Banking Committee voted to back Ben Bernanke’s second term as Federal Reserve chairman in December, the Senate as a whole must vote on this issue before January 31, and some believe this looming deadline won’t be met.

If the Senate fails to meet the deadline, Bernake will need to temporarily step down as chairman, and Donald Kohn, the vice chairman, will likely serve as acting chairman. Some, however, are pushing for a temporary extension.

Causing the delay are Senators Jim DeMint and Bernie Sanders, both of who have placed holds on the vote. Senator Chris Dodd has urged that the Senate not delay on the confirmation process.

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Comment: Not that it matters who runs the Fed anyway; whether its Bernanke or someone else, the Fed will continue to expand the monetary base and distort the economy.

Dollar Crisis Looms if US Doesn't Curb Debt: Experts

The United States must soon raise taxes or cut government spending to curb its debt, and failure to act will risk a crippling dollar crisis as investor confidence ebbs, a panel of experts said on Wednesday.

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Goldman E-Mail Lays Bare Trading Conflicts - DealBook Blog - NYTimes.com

In an e-mail message to select clients, Thomas C. Mazarakis, the head of Goldman’s fundamental strategies group, acknowledged that his unit often provided investment ideas that the firm had already traded on. Sometimes Goldman has even taken the opposite approach, betting against particular instruments that the group has recommended.

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cryptogon.com » JP Morgan: Largest Provider of Food Stamp Benefits in the U.S.

Bernanke faces mounting criticism after speech

There is mounting criticism of Federal Reserve Chairman Ben Bernanke's claim that low interest rates didn't cause the recent housing bubble.

During a speech to the American Economic Association's annual meeting in Atlanta Sunday, Bernanke called linkages between the Fed's monetary policy and the housing boom “weak.” But economists, newspaper editorial boards and some 2010 candidates are questioning the Fed chairman's reasoning.

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Comment: Bankman Bernanke who totally missed the oncoming collapse is now telling us that low interest rates didn't have a role in it. I'm glad he has the credibility to make such a claim...