Wednesday, 9 September 2009

The Last Days of Lehman Brothers

WATCH:

AVAILABILITY:

7 days left to watch (or download at BBC iPlayer).

Last broadcast today21:00 on BBC Two (except Northern Ireland (Analogue), Wales (Analogue)) (see all broadcasts).

NEXT ON:

Tuesday03:00 on BBC One

SYNOPSIS

On 12 September 2008 the heads of Wall Street's three biggest investment banks are summoned to a late afternoon meeting at the New York Federal Reserve. After six months of turmoil in the world's financial markets, Lehman Brothers, the fourth biggest player on Wall Street, is on life support and the government is about to pull the plug.

As Lehman CEO Dick Fuld waits anxiously in his 7th Avenue headquarters for news from the Fed, US Treasury Secretary Hank Paulson drops a bombshell - Lehman Brothers is not too big to fail and this time there will be no public money for a bailout. After 42 years with the firm he calls the mothership, Fuld's time is running out.

Drama going behind closed doors to tell the story of three days that shook the world.

GLOBAL RECESSION: AFTERSHOCK

Use interactive tools and maps to find out which countries were worst affected by the financial crash, and what has happened to the bail-out money we put in to save the banks.

Plus, reports by BBC correspondents from the UK and around the world.

Find out how the financial crash affected you and others on the BBC News site

CREDITS

Paulson, Hank
James Cromwell
Thain, john
Ben Daniels
Fuld, Dick
Corey Johnson
Zach
Michael Landes
Lewis, Ken
James Bolam
Director
Michael Samuels

BROADCASTS

  1. Wed 9 Sep 2009
    21:00
  2. Wed 9 Sep 2009
    21:00
  3. Tue 15 Sep 2009
    03:00

Freedom sold, John Kampfner

As we sit in one of Moscow's fashionable neo-Tsarist restaurants, an old friend reminds me that there are only three Cs that matter: Chelsea, Cartier and Courchevel. The economic crisis has affected his real estate business, but not so much...

Read more »

20 years of freedom, and still not free, Martin Simecka

Some of you may recall the western hopes in the aftermath of the Velvet Revolution that central Europe could enrich the western political world with fresh new ideas, values or insights that it lacked; that perhaps central Europeans might come up...

Read more »

Europe’s progressive test: three crucial months, Simon Maxwell Paul Engel Dirk Messner Pierre Schori

The key decisions made over the next three months will determine Europe's future international role. Both the world and Europe are changing. On the one hand, the script which drives global policy-making is being rewritten to address the...

Read more »

Tom Nairn replies to his comments, Tom Nairn

I greatly appreciate this opportunity to reply to comments on my recent openDemocracy essay, and (I hope) pursue the argument farther. This hope isn't just piety: I realize more clearly than before how much needs to be done - it's a relief...

Read more »

Here is your Crux PM update: 

World's largest gold miner makes huge bet on higher prices
Company is raising billions to reduce its hedging book...

Warren Buffett buying the fewest stocks in over 5 years
The Oracle won't comment on the market, but he's selling more than he's buying today...

Taxpayers lose BIG on automaker bailout
Losses of 70% or more likely…

The secretive group keeping gold at $1,000
This entity is quietly guaranteeing your gold investment.

Must-see chart: The credit bubble is being blown again
Runaway money printing driving banks back to pre-crash levels...

Four common money mistakes you're probably making
...and how to easily fix them.

The most explosive asset class in the world just hit a new high
One of the few sectors with 1,000% gain potential is getting moving…

Regards,

Brian Hunt
Editor in Chief, The Daily Crux
www.thedailycrux.com  

ANTISEMITSM INCIDENCES

Report: Dutch Jews suffered tenfold increase in attacks during ...
Ha'aretz - Tel Aviv,Israel
... Haaretz Correspondent The number of anti-Semitic incidents documented in Holland in ... to the annual report by the country's watchdog on anti-Semitism. ...

Moneynews

Breaking News from Moneynews.com

Ken Fisher: Buy Fossil Fuels
Savvy investors should keep at least 12 percent of their portfolios in fossil fuels, says Ken Fisher. “In this country 89 percent of electricity comes from three fuel sources: coal, natural gas and nuclear fission,” Fisher writes in Forbes. “If you want your air conditioner to work in 2014, you'd better hope that more fossil fuel plants get built.”
Read the Full Story — Click Here

How US Healthcare Was Taken Over By Rockefeller









Collapse of Climate Alarmism
Climate alarmism is on its deathbed.

 Interview with Piers Corbyn: What happens when the SUN heats up a planet? 
 Carbon-rationing proposed 
 Air passengers face massive new green taxes to put people off flying


Europe’s Complicity in Evil
There is a widespread supposition that Obama, being black and a member of an oppressed race, will imbue US foreign policy with a higher morality than the world experienced from Bush and Clinton. This is a delusion. 

French Government To Use Swine Flu Threat In Crack Down On Liberties
Documents leaked to the French national newspaper Liberation, reveal that the government there intends to use the threat of a swine flu pandemic to overhaul legal protections for citizens.

Government Solutions Lack Understanding
Things seem to be unraveling quickly for the new administration. The latest unemployment numbers are worse than the last reports.

 Ron Paul: Campaign for Liberty Update

Guido Fawkes.  order-order.com

Has Tony Gone Non-Dom to Dodge the 50p Tax?

A selection of recent media reports

New housing enough to meet demand of new immigrants for just one week 
Commenting on the Governments announcement to build 2,000 council houses across England billed as the biggest of its kind over the past 20 years Frank Field MP and Nicholas Soames MP said:
Balanced Migration (09-Sep-2009)

Illegal immigrants still on the run after eight arrests made
A group of illegal immigrants escaped from a lorry when it stopped to deliver goods at a garden nursery. Around 30 men, believed to be from Afghanistan, jumped from the back of the vehicle which had come from Spain, when it arrived at Woodlands Nursery in Upper Caldecote, at around 9.
Bedfordshire on Sunday (09-Sep-2009)

SNP sets out vision of seat at top table of world leaders
THE first document outlining how an independent Scotland would conduct its foreign affairs has been unveiled by the SNP. At a ceremony in Brussels, Scottish external affairs minister Mike Russell said Scots could have a "dual citizenship" arrangement with the rest of the UK.
The Scotsman (09-Sep-2009)

Mark Steel: The Poles might be leaving but the prejudice remains
There is an almost artistic level of irrationality about immigration...
The Independent (09-Sep-2009)

Frustrated BNP
Why the BNP must not be given a...
Times Online (08-Sep-2009)











Wednesday, 9th September 2009

BBC Newsnight plumbs new depths of bigotry

12:45am


I have just caught up with a quite disgusting item by Katya Adler, transmitted on Monday evening's Newsnight, on military rabbis in the Israel Defence Force. She presented as deeply shocking the fact that these rabbis are trained officers who carry arms and are now deployed in the front line of combat. Worse still, they actually seek to inspire and fortify Israeli soldiers by using the Jewish religion and the words of the Hebrew Bible! How shocking is that?! No mention of the fact that the British army has military chaplains who are also officers. True, they don’t bear arms – although some chaplains in Afghanistan are now saying they think that should change because it is too dangerous not to when on a battlefield that is far more lethal to them than any other on which they...

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Tuesday, 8th September 2009

The airline plot denouement raises yet more questions about Londonistan

8:49pm


According to press reports, yesterday’s convictions of three young British Muslims in the al Qaeda transatlantic airline plot terrorist trial in London have been hailed as a ‘triumph’and an ‘enormous relief’ by the political and security establishment. Really? They shouldn’t break out the champagne just yet.

For sure, if there had been no convictions it would have been an absolute disaster of the first magnitude. Many in Britain even now remain unwilling to believe the true nature and seriousness of the Islamic terrorist threat to the UK. With the belief that ‘we were taken to war in Iraq on a lie’ having become the received wisdom, warnings by the security world of the grievous threat still posed by al Qaeda and its affiliates, working through an estimated two to four thousand radicalised young British Muslims, are often...

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The attack on Camp Ashraf

1:37am

I wrote here about the attack at the end of July by Iraqi forces against the Iranian opposition group the People’s Mujahideen Organisation of Iran (PMOI) at Camp Ashraf in Iraq, which led to the death of 11 Ashraf residents and the injury of 500 others.

Since then, the camp has remained under siege by Iraqi forces, some 36 residents are being held hostage and Iranians are staging hunger strikes and sit-ins in cities around the world, including in  Britain and America -- with some hunger-strikers now reported to be in a critical condition. This is in protest against the attack and in an attempt to regain the protection of the US which has handed over reponsibility for that protection to the Iraqis – the very people who are responsible for the attack and siege.

This affair raises not just...

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Monday, 7th September 2009

Oxford's latest prize

2:16pm

Tariq Ramadan, the darling of the British political and security establishment which foolishly and ignorantly believes his aim is to modernise Islam whereas his actual agenda is to Islamise modernity, has for some years beenreferred to as an Oxford professor. This was not actually true; he was not a professor at Oxford University but a mere research fellow of St Anthony’s College, Oxford. But now the wish has become father to the deed. In the depths of the long vacation, the Oxford University Gazetteannounced that Ramadan had been appointed

His Highness Sheikh Hamad Bin Khalifa Al Thani Professor of Contemporary Islamic Studies in the Faculty of Oriental Studies with effect from 1 October 2009.

Gratified as I’m sure everyone will be to hear that Tariq Ramadan (who was barred from the USA in 2004 and...

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U.S. Dollar Falls Sharply Across The Board: The U.S. dollar fell sharply against most of its major rivals on Tuesday, as commodity prices and global equities posted gains

UN Says New Currency Is Needed to Fix Broken ‘Confidence Game’ : - The dollar’s role in international trade should be reduced by establishing a new currency to protect emerging markets from the “confidence game” of financial speculation, the United Nations said.

Top Chinese official signals move away from dollar: The Chinese are becoming increasingly wary of the growing supply of U.S. dollars, leading the head of the nation’s green energy initiatives to signal a move away from dollar reserves and toward, gold, euros and yen, according to a published report.

4 Signs that China is Moving Out of the Dollar: The U.S. Treasury Department revealed that China actually REDUCED its note and bond holdings by $25 billion in June. Although China did NOT sell shorter-term Treasury bills — and isn’t expected to — it’s still the largest amount of Treasuries China has ever sold in a single month.

More US wealthy opt to surrender their citizenship: As offshore havens comply with transparency demands, a growing number of ultra-wealthy Americans are handing back their passports

Fed: Consumers Slash Debt by Record $21.6B in July: The Federal Reserve reported Tuesday that consumers ratcheted back their credit by a larger-than-anticipated $21.6 billion from June, the most on records dating to 1943.

Van Jones decries 'lies and distortions,' quits as Obama's environmental advisor: Jones says he has become a distraction to the administration's healthcare agenda because of his videotaped insult of Republicans and his signature on a petition suggesting a 9/11 conspiracy.

Obama: Health insurers must profit: Reforms must not stop insurers from making money, US president tells union members.

Plan Allows for Fines Up to $3,800 for Failing to Get Health Insurance: A top senator is calling for fines of up to $3,800 on families who fail to get medical insurance after a health care overhaul goes into effect.



US seeks Arab alliance against Iran: Washington has asked Arabs countries to form a military alliance with the United States in an attempt to impede the Iranian nuclear drive.

Official: Russia, China scuttled bid to slap more sanctions on Iran: Russia and China have rejected a proposal by the United States, Britain, France and Germany to impose more sanctions on Iran should a dialogue over its nuclear program fail, a senior official in Jerusalem said.

Venezuela set for gasoline exports to Iran: Venezuela has joined a small group of exporters willing to defy Western pressure by exporting thousands of barrels of gasoline to Iran, officials say.

Hundreds flee clashes in Gabon: Three people have been killed in Port Gentil, the country's oil hub, in the violence and the government is contemplating using emergency powers if the unrest does not cease, Jean-Francois Ndongou, the interior minister, said.


One should applaud the skill, planning and sheer bravery that went into to rescue this morning of New York Timesjournalist Stephen Farrell (pictured), and lament the death of a special forces soldier who died in the raid in order to secure his freedom and, most probably, save his life.

Reports, necessarily, are sketchy, but we are told that a British "commando" was killed in the pre-dawn raid, set up after Farrell and his Afghan interpreter, Mohammad Sultan, were kidnapped by the Taleban last Saturday after travelling to the site of the air strike near Kunduz in which up to 125 people were reported killed. Mohammed Sultan, unfortunately, was also killed in the raid.

Mr Farrell will now, undoubtedly, be fêted for his bravery and fortitude. Doubtless, he will dine out on his experiences for many a month and, in the fullness of time, launch a "best-selling" book, which will be lauded by his fellow hacks, who will heap praise upon him in a glowing series of reviews.

Small recognition will be given to the member of the special forces who died for his freedom – the man, as is the convention, will not even be named. And while Farrell undoubtedly takes risks, his courage is always tempered by the fact that, should he get himself into a predicament – as he did here – there are always men such as our anonymous special forces soldier, who are prepared to forefit their lives to extricate him.

One does not in any way denigrate Mr Farrell's own courage. We need journalists such as him who are prepared to put themselves at risk to gather information on the wars fought in our name. They are the foot soldiers in a different kind of battle, and they are an important part of the matrix from which we learn, and are able to build up an understanding – albeit imperfect – of what is going on.

This we noted in an earlier piece, when we applauded the efforts of Tom Coughlan, for his vivid reports from the front, putting himself at considerable risk in gathering his accounts.

But we would take issue with the comments of Stephen Grey, journalist and author of Operation Snakebite quoted – or perhaps misquoted – in The Daily Telegraph. He tells us, of Farrell, that: "He is the sort of person who realises that you have to get out of your comfort zone beyond the wire in order to work out the truth."

The issue here, of course, is the word "truth". Mr Farrell, any more than the rest of us, is not in a position to acquire that precious commodity. It is not there for the taking, but emerges only – if at all – from the labours of many, over a period of time. It is built on information from multifarious sources, needing most often the perspective which only time and distance can give.

As a custodian of the truth, in fact, Mr Farrell has a poor record. As a journalist in Iraq – where he was briefly kidnapped – he was one of the first to report on the growing power of the militias, reporting in May 2003, for The Times of the return to Iraq of Mohammed Bakr al Hakim, de factoleader of the Badr Corps, which was to give the British some grief in Basra.

Although Farrell continued covering the war in Iraq, reporting for The Times and subsequently for the New York Times, he was one of the many journalists who misread the signs and failed completely to understand the importance and political significance of Malki's operation Charge of the Knights in late March 2008.

Thus, in early April 2008 did Farrell, alongside his NYT colleague James Glanz, famously (mis)report that the "crackdown on the Mahdi Army militia is creating potentially destabilizing political and military tensions in Iraq."

Farrell, in common with many of his colleagues, from outside the "comfort zone beyond the wire", added much information on the situation – with some fine reporting and good follow-up, but missed the bigger picture.

No more now than then does any one journalist offer the "truth". But too many of them, from the narrow perspective they gain from being briefly at the sharp end, picking up part of the picture directly and thus contributing to the flow of information on which we all so much rely, believe they have a greater claim to being its custodian than perhaps is warranted.

And then, in the final analysis, the ultimate custodians are – for all their failings – the military. For only as a result of their bravery do the likes of Farrell live to tell their tales.

COMMENT THREAD

a commission offical returning to work after its summer breakAfter their long summer break, the apparatchiks of the Socialist Republic of the European Union are slowly coming back to life – inasmuch as these zombie-like creatures can ever truly be regarded as "alive".

And right up front is agriculture commissioner Mariann Fischer Boel, indulging in a bit of crude populism, declaring that the zombie-in-chief José Manuel Barroso is to consider allowing member states to ban EU-approved GM crops.

The European Commission President wants to "look at whether we can give the member states more freedom on this issue," says Fischer Boel, adding that she would support this idea. 

At the same time, apparently contradicting the supposed effect of this new "freedom", she also advocates speeding up market approval for new GM maize lines "to lift trade barriers that have a emerged as a result of asynchronous approval of GMOs in the EU and in GMO export countries." 

But then come the weasel-words. A distinction must be made between the importation of genetically modified plants and those grown in the EU itself, she says.

Then she adds: "I know that cultivation is a very sensitive issue." Member states do not have the right to prohibit the cultivation of GMO crops on their territory once it has been authorised in the EU, except if evidence is provided that the GMO is harmful for human health or the environment – which, so far, no member state has been able to provide. 

Nevertheless, because there is little or no public acceptance for GMO acreage among the public, a majority of EU member states are lobbying to change this practice and Fisher Boel is making soothing noises about letting them have their way.

But all is not what is seems – it never is with that lot. Having been unable to break the logjam and get the member states to accept EU law on GMOs, and with the WTO breathing down its neck, the zombies are trying to pull a fast one. 

Basically, the deal is that, at long as the member states accept the import of GM crops from Monsanto-land in Brazil and the USofA – thus keeping the WTO off their backs - the munificent EU will allow them to ban their own farmers from growing them.

I can see this going down a storm with our own NFU, and then the greenies won't be too happy either. But with the poison dwarf also playing games, the Poles telling the commission to get stuffed (in Polish, of course, when even "please" sounds like a swear-word), the zombies are really over a barrel.

So the drama continues, dragging on into eternity, we wrote last year. Nobody in the media here really gives a damn, the Tories don't want to touch it because it sets the greenies and their EU-luvvies on a collision-course, the government is running so fast from it that you can smell the burnt rubber at the top of Whitehall, and nobody listens to the farmers anyway. They're always moaning, so they can safely be ignored.

For all that, this really is a delicious conundrum – greenies versus zombies. It doesn't matter who wins, as long as they tear each other apart in the process.

COMMENT THREAD

A major public speech by a shadow defence secretary of an opposition party which will in all probability win the next general election should, by any normal measure, be an important event. It is in that light that we approach yesterday'skeynote speech from Liam Fox to the UK Defence Conference 2009.

We have summarised the speech onDefence of the Realm, with no detailed comments of our own, to avoid an intrusive "footprint" which might distort the message Dr Fox wishes to convey. This, presumably, is the platform the Conservative Party will present at the general election.

The main thrust of this "platform" – which will come as no surprise – is that a new administration will conduct a strategic defence review. Its purpose will be to define what Britain's strategic interests are and where they exist at home and abroad. 

Unless you have clear foreign policy objectives you cannot have a proper defence strategy, says Fox. This will allow the strategic environment and the threats posed to our interests to be assessed within reasonably predictable limits. It will then determine the capabilities we need to protect those interests.

There is much sense in this approach. Defence capabilities – barring the insurance policy of home defence – should very much be the servant of our foreign policy, they being simply one instrument in a broader portfolio,

However, there is a significant omission here from Fox's speech. There is no mention of the European Union. Yet to a great and increasing extent, our foreign policy is determined either by or in consultation with the EU, yet we also have our own independent line, in relation to the United States.

Therein lies a major problem, in that this current government has been struggling (and failing) to resolve the conflict between incompatible and often conflicting foreign policy objectives. That Fox does not even acknowledge that conflict augers ill for any attempt by a Conservative administration to resolve it.

Further, there is no recognition that the UK no longer has (nor has had for some time) the capability for wholly autonomous military action. Any future action will either be in the context of a multi-national alliance, or with the material support of our allies.

Here, the conflict between the US and the EU presents the really difficult problems. In terms of physical and doctrinal interoperability, we can work with one set or the other – but it is very difficult to equip and structure our Armed Forces to work effectively with both.

Furthermore, each set has its own capabilities, the US bringing far more to the table than the EU. In that, effectively, we cannot provide a full suite of capabilities, our procurement programme and indeed our structures must be determined by our choice of ally. Trying to satisfy both leads to confusion, duplication and lack of cohesion.

We see, therefore, from Fox, a certain amount of evasion. He has identified a core issue, but he has not addressed it. Whether he will ever do so is a matter of conjecture. 

COMMENT THREAD