Former UK PM Brown Comes Clean On 'Grossly Under-Capitalized' European Banks
It appears that once politicians become disentangled from the incessant need for happy-speak and propaganda, truthiness is much more capable of flowing from their orifices. During a speech at the World Economic Forum on Friday, Gordon Brown explains what everyone in power knows, yet is loathed to admit, that "The euro cannot survive in its present form, it’s going to have to be reformed dramatically. We are I think at an hour to midnight in the way that we look at this issue." He adds "European banks as a whole are grossly under-capitalized."
A Bloomberg story has some other choice quotes from his eloquently delivered speech that should ring true to any and every market participant, no matter how delusional on the solution set ahead.
"In 2008, governments could intervene to sort out the problems of banks. In 2011, banks have problems, but so too do governments."
"We’ve now got the interplay between banks that are not properly capitalized and sovereign debt problems that have arisen partly because we’ve socialized or accepted responsibility for the banks’ liabilities."
The EFSM is "not enough" and "substantially more resources" are required.
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Are those broke Englismen now going to say what europe needs to do ?
This is the man who will go down in history as the person who made the biggest investment mistake in history. He made the Gold bottom! But then again he was just doing what his masters told him to do.
http://silverliberationarmy.blogspot.com/
We were in Europe during the runup to the elction that was taking place in the UK in 2010. Because of that we got to watch some of the debates between Brown, Cameron and the other guy. I'm too lazy to look up his name. Every time Gordon Brown spoke I wanted to throw up. I don't even know the man but I just got that feeling every time he talked. Cameron was not much better, in my humble opinion.
.
Its not just European banks that are undercapitalised. Bank of America has been grossly mistreated by the courts here in the US, which is seriously undermining their balance sheet. These mortgage fraud conspiracy theories should never have seen the light of day, let alone have found themselves to be the subject of class action law suits. America got where it is today because of banks making consumer loans which power our consumer economy, and I just hope we can do a better job of showing our appreciation for the work they do than our neighbours in Europe.
twat
I don't think you fully appreciate MDB's contribution here. Have you not heard of Snidely Whiplash?
HA!
;)
I like my sarcasm well done.
Technically speaking MDB's contributions are more ironic than sarcastic:
http://en.wikipedia.org/wiki/Irony
Th preceding post by our good friend, MillionDollarBonus (who obviously only works in our mailroom for such a paltry, practically only living wage sum) has been brought to you by your good friends at Goldman Sachs.
Doing God's Work. Since He's Not Here. Or Doesn't Seem To Be.
With boiled rope from lampposts?
Clearly you have a sense for these things! There a few people more richly deserving of a back-alley throatpunching than Gordon "an-end-to-boom-&-bust-wanna-buy-some-cheap-gold?" Brown, but David Cameron is certainly high on the list of contenders. Nick Clegg, the guy you were understandably too bored to Google, is now second in command of the UK, which pretty much says it all.
An hour to midnight? Is he fucking joking?
That alone proves he's still lying out his Brown ass.
he is half blind. He can't read a watch so he has people to tell him what time it is. They are the ones to blame!
I wondered what orifice Tyler was referring to. Thanks for clearing that up.
If only that was the biggest mistake...
He took a 3% surplus, and turned it into a 13% deficit in less than 10 years, claiming it was "investing in Britain". So, technically, that means he "invested" 13% of $2.17t = $282bn in 2010 alone.
Most of the "investment" went on welfare payments, btw. Roughly a third of British gov't spending goes on this alone.
I think I speak for all British people - bar the gay African muslim disabled drug-addict immigrants (on crack) who he let into Britian by the milion, and built luxury saunas and roller discos for (on top of war cemetaries) - when I say that we would gladly castrate Brown, stuff his balls into his mouth, and poke him in whatever eye he still has 10% vision in. The write 'dog' on his ugly gorilla wife's forehead in felt tip pen.
The cunt is a textbook example of complete psychosis and mental illness, and he 'ran' the UK without once being elected. Not by the Labour Party, MPs in the House of Commons, the Labour National Executive, the voting UK public, MEPs, the unions, anyone. He was a pathological liar, he gave a trillion to the banks without so much as a vote by MPs, he destroyed more British industry than any other Chancellor or PM, he destroyed cultural cohesion, he got us into debt well before the global recession, and he had a stupid jowly face I would like to take a cheese grater to. He makes Barack Obama/Barry Soetero look like like a capable, reasonable Indonesian guy just doing his best in a difficult job. He is that much of a super-cunt. Fuck, I would suck George W. Bush's disk just to avoid seeing that cut Brown on the telly.
Used to be, you entered 'Gordon Brown is a cunt' into Google, and 100,000 pages turned up. Americans just can't fathom how much we hate Brown. He is Obama AND Bernanke rolled into one, whilst gilling hysterically as he wanks onto your dead granny's only photo. I don't want him dead - I want him kept alive for millenia, stewing in a vat of dogshit.
And the stupid cunt brown spent most of his time trying to get Britain into the Euro. Shit, he would eat a turd if he thought he'd get into the papers because of it.
Indeed! Gordon Brown did more to destroy Britain as a nation, as an economy and as a culture than any enemy in the history of human populated British Isles.
Brown's only goal, one shared with Blair, was to end Britian as a civilized cohesive culture and nation and turn it into a dumping ground benefits paradise for every overpopulated thrid world zoo on earth.
Got off a plane in Heathrow a year ago and waiting to go through passport control I became aware I was caught up in a Pakistani invasion force bent on conquering Britian. To top it off, the pass port immigration officer I had to go through was herself a scarf wearing Muslim. Not long from now Britian will be a Muslim nation where the majority lives off of benefits and lives in council housing all provided by people like Brown. That prick should be hunted for sport instead of foxes.
geez, guys, sounds to me (on the other side of the pond) that, well,
you sound fairly 'disappointed' with mr brown
i just wish you guys would 'really' tell us how you 'feel' about him.
you know, stop being so reserved......
and 2 green arrows from me ping.
Words cannot convey the way that we we feel about this traitorous scum.
Ping and Jack Burton have put it beautifuly. Brown is a fucking joke and was an utter disaster as chancellor and then as PM. But lets not forget how the media fawned over both he and Blair during their rule.
Agreed!
oh my. I think this is the most vile angry post yet !
So what's wrong with your government that Mr. Brown was not elected by anyone?
Absolutely @Ping, get a few of those tubs of excrement for Cheeerie and Toneee.
No wonder Obama has ordered a bust of Brown to replace Churchill's in the Oval Office.
Please don't hold back, say how you really feel.
Jewish Occupied Governments
You talking about the infamous Brown Bottom?
Still affectionately known in The City as "The Brown Bottom". Those were the days, all we have now is the "Pap-smear".
The original " Rogue Trader ",why is he not in prison as Sir Gordon Mega Expensive Failure of Wormwood Scrubs.
Didn't Gordon Brown sell half of Britain's gold at about $250 an oz?
brown sold our gold, bitchez.
MmmHmm, and cleverly announced his plans beforehand to drive the price down even further. Genius!
No wonder the UK is such a fucking mess.
Britain deserves what it gets for pushing that NWO shit on us. Dito for the rest of the planet too.
Gordon Brown New World Order Speech
http://www.youtube.com/watch?v=Uv5cqh26CC0
STFU Gordo, you gold selling, pension robbing, war-mongering, debt fuelled, NWO cocksuck3r.
Gordon Brown=standing joke in all financial circles worldwide. The English are now in the position of poor white trash in Alabama, who could always say, "at least we're not Black". And, of course, because this offers succor to the wounded egos of the English; he will collect approval for it. It's a very political thing to say; but he's still a dumb as a bag of hammers. If his opinion is not worthless, I don't know where you would go to find one.
Gordon Brown is a joke in the UK too. He was never elected as PM; as soon as he faced the electorate he was roundly defeated. Gordon Brown has done much to destroy the UK, and he is despised by most right thinking people.
For God's sake don't equate Gordon Brown with Englishmen. For a start he is scottish. Secondly, he is a national embarrasment, much like George Bush was for the USA.
Ironic, coming from the dude who sold the UK's gold and helped throw us into this fire by bailing out the banks.
The moral of this story ladies and gentlemen is "Good guys win, bad guys lose, and as always, England prevails!"
Appropriately known as Brown's Bottom.
Maybe we can all exchange financial leaders that got us into the 'crises' to now tell other countries(which they have nothing to do with) what to do to get out.
Yay! We all get out together.
Sorry, Gene, we don't even get out alive. Nobody does. Didn't you know?
Setting right his historical legacy.
I'd still take him over Obama.
Really? The guy who ordered two aircraft carriers with no planes?
The guy who pushed ahead with the wretchedly designed Private Finance Initiative that resulted in an entire decade of government procurement unnecessarily doubling in cost?
Brown makes Obama look like the 1st Han emperor.
http://www.youtube.com/watch?v=9Gi7qqvRlY0
Yes another pawn of the elite growing a conscience, but when they are at the helm they can't see whats coming. Strange.
Writing an apology to his fellow citizens and then drowning himself would be a tiny step in t he right direction; this is just more political lip flapping.
Indeed. Another setup for the "magical NWO solution".
http://en.wikipedia.org/wiki/Sale_of_UK_gold_reserves,_1999-2002
His biography after he left office states his decision to bail out the banks left him as "The Man Who Saved The World".
What a fanny
What? so this scumbag that destroyed the UK economy (while 'saving the world') with his endless bullshit and banker arse lickin should be listened too now? that bastard shud be in jail.
Change 'because we’ve socialized or accepted responsibility for the banks’ liabilities."
to
because I socialized or accepted responsibility for the banks’ liabilities."
then ur nearer the truth of the matter. The man that called the gold bottom and sold half the UKs gold at that low wot a .....(fill in blank)
"European banks as a whole are grossly under-capitalized."
Full retraction in T-minus 10 seconds ... 9 seconds ...
Retraction followed on by an announcement that Brownie will now be a $1m/year advisor to a European bank.
The hypocricy /puke
Gordon Brown is a gobshite.
+ infinity
at least the uk still has their own currency. that way they don't get greeked.
True.
But although Brown would like to take some credit for that it had little to do with him.
He is and remains a gobshite.
Amazing what a glimpse of one's legacy produces.
Politicians steeped in slime become fearless state-persons after their terms of office have permanently expired.
...and only when their status doesn't directly, immediately take a hit, can their brains access/speak the truth.
Hey Brownie, Your banks got nuthin' on our banks. Love Uncle Sam
Until somebody looks in Fort Knox, I'm not throwing any rocks.
Rickards discussed this fairly convincingly in a King World News interview. They appear to have taken down the full mp3 of it, where he discussed the leasing arrangements, but you can read a precis of it here:
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/8/5_Jim...
to sum up: the gold that was leased by the US government to the various bullion banks, which was then leased out, or even sold, many times over via the unallocated gold scam, has never left the military vaults. So JPM or HSBC might default if they are called to deliver, but they'll just pay fiat compensation to the suckers who thought they 'owned' the gold, and the US government will still have possession of the real thing.
that's why we spend $800B/year on the military....
Gordon Brown saying he saved the world by taking on bank losses
Now he admits he just destroyed the government, can someone put his quotes to the Hitler scene from Downfall please?
Ha but it is saturday in America. All will be forgotten by Monday when we will get some great BS rumor to send futures to 1250.
Or maybe this time will be different..........
One can hope.
I hear Bernanke is going to have oat bran for breakfast. That is good for 35 S&P points.
Bankers are socialist when the're broke and need bailing out. At all other times "market forces" will be the judge.
I recall the fall of 2008 vividly. You should have seen the whimpering and crying of the "geniuses" around me. When things are good and they are making money they think they are all business giants. The moment things start to go south they all go crying to the government, like they are crying to their mommies, to save them. It is a disgusting site. Then, of course, the Fed liquified every market and their "jenius" had returned.
Money and brains do not necessarily go together.
Enter the FED.
The American tax payer will save Europe once again and be demonized and hated for it.
I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.
Thomas Jefferson
The time is near at hand which must determine whether Americans are to be free men or slaves.
George Washington
There is a mysterious cycle in human events. To some generations much is given. Of other generations much is expected. This generation of Americans has a rendezvous with destiny.
Franklin D. Roosevelt
Americans are so enamored of equality that they would rather be equal in slavery than unequal in freedom.
Alexis de Tocqueville
You may be sure that the Americans will commit all the stupidities they can think of, plus some that are beyond imagination.
Charles de Gaulle
The genius of you Americans is that you never make clear-cut stupid moves, only complicated stupid moves which make the rest of us wonder at the possibility that we might be missing something.
Gamal Abdel Nasser
Americans are big boys. You can talk them into almost anything. Just sit with them for half an hour over a bottle of whiskey and be a nice guy.
Nguyen Cao Ky
War is God's way of teaching Americans geography.
Ambrose Bierce
You can always count on Americans to do the right thing - after they've tried everything else.
Winston Churchill
> The American tax payer will save Europe once again
Worldwide dollar holders will save Europe once again
FTFY.
Exactly. With most US currency being held outside the US by foreigners, it is those same foreigners who, with every QE and liquidity injection, are seeing the value of their US holdings diluted most.
With most US currency being held outside the US by foreigners, it is those same foreigners who, with every QE and liquidity injection, are seeing the value of their US holdings diluted most.
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Really? But what about the fairy tale of US tax payers saving the world?
That story telling that US citizens are sacrificed for the welfare of the rest of the world?
In fact, the rest of the world is sacrified so that US citizens can be secured in their American way of life. Especially all those commodities rich countries that have got their USD by selling their commodities...
Those quotes are great. Kudos.
and a hat tip to you. thanks.
So in all his wisdom he says that we are doomed because "we" socialized the banks' liabilities and in the next sentence he says EFSM is not enough and "we" need more. More socialization of the banks' liabilities which are already too much for ANYONE to carry. Why are these lunatics still walking free?
We are The Superpower in lying. You Europeans can't beat us, eh ? Lie, damn you, our timmay was there to teach you the art of lying to the public, the masses, the sheep.
THIS IS THE KIND OF COMMUNICATION I LIKE!! :)
They're really screwing things up these days, just look at the OESO meeting and now this...
MONDAY = BLOODBATH!!
Lately, Sudden, it has only been a bloodbath for shorts. There is no logic when governments and central banks are involved.
Be careful. Don't get your Belgian balls singed.
I'm out of the markets for 7 months now. I only have some chinese funds remaining which are down but cost 15% if I sell them and I lose a tax advantage.
You're out of the market? Does that mean you are in gold? Most people foolishy tell me that only to find out they are in US dollars. You haven't gotten out of anything if you are in a fiat currency, you've just let central bankers slip their hands in your pockets.
No, you can't have my gold. Find your own.
we sit we write we understand
but robbing bankers will not we banned
it's great to vent our vile disgust
but the best we will get is a self destruct
politicians and judges easily bought
for our childrens future never a thought
but bankermans tower is built upon lies
so get out the popcorn and enjoy his demise
Believe anything from that man who said "an end to boom and bust" and sold the UK's gold at the bottom?
He is complete fool and if he says they are grossly undercapitalised, that means they are completely BROKE and have failed a long time ago.
Name one politician in the world with a basic understanding of economics.
It's like every D grade student gets to be a politician!
Brown sold UK's gold. Almost all of it. Poor fellow.
To be fair, we did steal a lot of it from India and the rest of the empire in the first place. Selling opium to the Chinese was also very lucrative.
You reap what you sow.
I've just spent some time with a top bloke from UBS this afternoon...really top bloke... I can tell you he thinks it 'unlikely' the 2 billion loss was anything to do with the swiss franc being pegged to the euro, as I thought it might be, Likewise he had never come across anyone who had ever made any 'rogue' gains, ie where someone had won £2 billion, but hey that's what he would say...
My neighbor's a nuclear engineer who works for GE. Shortly after the earthquake/tsunami in Japan and Fukushima started smokin', I asked him if he was concerned. No, not at all. NOTHING to worry about...I think he actually used the word 'unlikely' regarding out-of-control radiation leaks. I didn't believe him. Later, I suspected that GE probably issued some sort of directive, just in case your neighbors start asking questions...
He's also a great guy. Is everyone a liar?