The Coming Derivatives Crisis That Could Destroy The Entire Global Financial System

Most people have no idea that Wall Street has become a gigantic financial casino. The big Wall Street banks are making tens of billions of dollars a year in the derivatives market, and nobody in the financial community wants the party to end.

http://theeconomiccollapseblog.com/archives/the-coming-derivatives-crisis-that-could-destroy-the-entire-global-financial-system

Monster Prediction From BofA: Another US Debt Downgrade Is Coming In Just A Few Weeks

We expect a moderate slowdown in the beginning of next year, as two small policy shocks—another debt downgrade and fiscal tightening—hit the economy. The “not-so-super” Deficit Commission is very unlikely to come up with a credible deficit-reduction plan. The committee is more divided than the overall Congress. Since the fall-back plan is sharp cuts in discretionary spending, the whole point of the Committee is to put taxes and entitlements on the table. However, all the Republican members have signed the Norquist “no taxes” pledge and with taxes off the table it is hard to imagine the liberal Democrats on the Committee agreeing to significant entitlement cuts. The credit rating agencies have strongly suggested that further rating cuts are likely if Congress does not come up with a credible long-run plan. Hence, we expect at least one credit downgrade in late November or early December when the super Committee crashes.

http://www.businessinsider.com/huge-prediction-from-bofa-another-us-debt-downgrade-is-coming-in-just-a-few-weeks-2011-10

EU bank failures will crash Wall Street — again

Worst-case scenario’s closing fast: Occupy Wall Street growing. But no political power or allies yet. Feared yes, attacked by GOP proxy tea party. Soon the Occupation will explode into a new American Revolution.

http://www.marketwatch.com/story/eu-bank-failures-will-crash-wall-street-again-2011-10-18

'Solving eurozone crisis is a long way off': Warning leads global stock markets to tumble

Stock markets around the world slammed into reverse yesterday after Germany warned that a solution to the debt crisis in the Eurozone was a long way off.
German Chancellor Angela Merkel warned the deadlock might not be broken until next year – dashing hopes of a comprehensive rescue plan emerging this weekend.
It came as a leading forecaster in London said the crisis in the single currency bloc will plunge Britain back into recession.

Read more: http://www.dailymail.co.uk/news/article-2050327/Eurozone-crisis-Recession-warning-leads-global-stock-markets-tumble.html#ixzz1bIJYyYQa


http://www.dailymail.co.uk/news/article-2050327/Eurozone-crisis-Recession-warning-leads-global-stock-markets-tumble.html

S&P downgrades 24 Italian banks, financial firms

Standard & Poor's on Tuesday downgraded 24 Italian banks and financial institutions, citing renewed "market tensions" and lower economic growth prospects.

The action was taken after a review of the implications of a tougher-than-previously-anticipated macroeconomic and financial environment for the Italian banks, the credit rating agency said.

"In our opinion, renewed market tensions in the euro zone's periphery, particularly in Italy, and dimming growth prospects have led to further deterioration in the operating environment for Italian banks," it said in a statement.

http://www.reuters.com/article/2011/10/18/us-italy-ratings-sp-idUSTRE79H4RZ20111018

10 Essential Fiscal Charts Demonstrating America's Disastrous Condition

With stagnating economic conditions and the passage of new legislation, especially the Budget Control Act of 2011, the outlook for the deficit and debt has changed considerably over the past six months.

http://www.zerohedge.com/news/10-essential-fiscal-charts-demonstrating-americas-disastrous-condition

Moody's warns France on possible negative outlook

Moody's warned on Monday it may slap a negative outlook on France's Aaa credit rating in the next three months if the costs for helping to bail out banks and other euro zone members stretch its budget too much.

http://www.reuters.com/article/2011/10/18/us-france-ratings-moodys-idUSTRE79G6XT20111018

Ron Paul’s Economic Plan: Cut 5 Cabinet Agencies, Cut Taxes, Cut President’s Pay

GOP presidential candidate Rep. Ron Paul will unveil his economic plan Monday afternoon, calling for a lower corporate tax rate, cutting spending by $1 trillion during his first year in office and eliminating five cabinet-level agencies, including the Education Department, according to excerpts released to Washington Wire.

Mr. Paul’s “Restore America” plan calls for a drastically reduced federal government to help spur American business — a familiar theme for the Texas Republican and many of the GOP White House hopefuls. But unlike some of his Republican rivals who have released economic plans, the libertarian congressman mostly avoids the weeds of tax and trade policy, according to excerpts.

http://blogs.wsj.com/washwire/2011/10/17/ron-pauls-economic-plan-cut-5-cabinet-agencies-cut-taxes-cut-presidents-pay/?mod=google_news_blog

Greece Faces 'Hellish Week' as Debt Crisis Tests Nation

The national newspapers proclaim in large 40-point type “Hellish Week,” or more sarcastically “It Begins — the Week of Thrills.” Both are a reference to a massive 48-hour strike, beginning Wednesday, that may bring out as many as 50,000 to 60,000 protestors.

The protest is timed for a controversial vote in parliament, scheduled for Thursday, that would effectively eliminate the minimum wage for millions of workers.

http://www.cnbc.com/id/44931473