Category Archives: bankruptcies

Bally Health Club Bankruptcy & Bacterial Viral Infections at their Gyms

Bally Health Club where I work out in Orlando, Florida has already shut down two of their 4 gyms. Without forewarning the Bally Health Clubs in Pine Hills and Casselberry were closed.

Now I’m told the only remaining Bally Health Club in the Orlando metro (as someone said the Altamonte Springs Bally Health Club was also closed) is the one nearest the airport at Semoran Blvd. where I workout and the Bally’s near International Drive on Kirkman Rd. near Valencia Community College.

Beyond the bankruptcy, as if that wasn’t bad enough as I have a premier lifetime membership with Bally Health Club (for which I can use any gym anywhere in North America, as Bally’s is also operating in Canada where my wife is from), Bally even more surprisingly has stopped properly cleaning its equipment.

Nobody is required to bring a towel into the club where I workout. This means pools of sweat are often left behind on the equipment. Paper towels are nearly nonexistent at the gym without requesting some from the staff, who often reply they are “out” and “don’t have” them. The equipment often appears to be greasy, oily, and holds bodily fluids of other gym members who previously used (without a towel) and didn’t bother to clean up after themselves.

Even worse (and another lawsuit waiting to happen) is damaged equipment that has not been repaired. For example the lower back extension has been broken for nearly a month. When I sat down to use the lower back extension and noticed the foot bar had been broken off (which provides stability to the lower back to prevent injury), to my surprise a Bally’s personal trainer (or should I say salesman) approached me to pitch PT (personal training) to earn himself some money, but never bothered to put an “out of order” sign on the damaged equipment.

I am a former personal trainer myself and know a lot about gym equipment and proper management of health clubs. I worked for 24 Fitness in California and at a local private gym in Orlando years ago, which I pretty much managed in the absence of the owner.

When I recently saw what looked like pink eye appear in my right eye and what looked like herpes on the right side of my mouth, I started freaking out and wondering what was going on. I’m a married man and definitely am not playing around sexually. Yet I have been working out at Bally Health Club regularly.

When the optomotrist put a liquid solution (which burned profusely) in my right eye to test me for herpes, thankfully it was negative and I don’t have herpes. What the doctor did say I have however is a bacterial viral infection. I immediately told the doc about Bally’s going bankrupt and being too cheap to clean their gyms as of late. He was a bit surprised to hear this.

Incidentally, the optomotrist visit cost me hours out of my schedule (as I was made to wait for an hour in the doctor’s waiting room until I could be seen and had to drive two hours to and fro) and $125. The eye drops cost another $97 from the pharmacist. Bally Health Club should at least pay me $1,000 for my pain and suffering, their negligence, and time stolen from my schedule.

If there is anybody facing a similar situation at their Bally Health Club, please put your name, address, and state your situation and email on a comment after this post to be added to the forthcoming class action lawsuit and let your voice be heard.

Bacteria and viral infections (with the recent outbreak of the swine flu) need to be prevented and every precaution taken. Health Clubs such as Bally’s who fail to take proper hygiene and sanitation procedures required by law need to be punished and shut down if they fail to comply. Refusal to clean your health club is gross negligence and should be punishable to the full extent of the law.

The carpet in the aerobics room at Bally’s Health Club is filthy and needs to be replaced. Their are cigarettes all over the ground at the entrance to Bally’s. A lifetime member (an elderly man who has been attending the Semoran health club for years) told me some years back a manager at the health club was involved in a homosexual relationship with an underage young man who he was having sex with in the men’s locker room after hours.

Health Clubs such as Bally’s and other private clubs need far more scrutiny from sanitation and law enforcement to ensure the general public is protected.

If you are an attorney reading this and would like to represent me and the members of Bally Health Club, please kindly reply to:

RevivingNations@yahoo.com

www.PaulFDavis.com – consumer advocate, worldwide speaker & life-changing author

Advertisements

Leave a comment

Filed under bankruptcies

China to Diversify Foreign Currency Reserves, Dump Dollars, and Invest its $1 Trillion Elsewhere

China will soon begin to diversify its foreign currency reserves and dump dollars by the billions. As China invests its $1 trillion from trade surpluses elsewhere, other central and foreign banks will dump dollars. We holding dollars will lose much. 

China’s spectacular trade surplus and mighty strength as the lender of last resort to many nations including America, which owes $10 trillion in debt, are raising eyebrows as many investors are dumping dollars and buying China’s Yuan, a highly undervalued currency.

http://ads.easy-forex.com/Gateway.aspx?gid=104994

http://www.bullionvault.com/#paulfdavis

[b]China’s plan to diversify foreign currency reserves is an unprecedented move away from the U.S. dollar.[/b]

The Chinese government announced the formation of a new agency to oversee investment of China’s $1 trillion in foreign currency reserves, representing a potent new force in international finance.

Finance Minister Jin Renqing offered no specifics about how much of the currency reserves would be made available to the investment agency. But analysts say the agency is expected to control one of the world’s biggest investment funds, and one that could singlehandedly alter the value of national currencies on a global scale. As China seeks more attractive investment earnings with its vast financial holdings and moves away from the devaluing dollar, expect the U.S. economy to take a nosedive. When it does (and already beforehand for savvy investors with sufficient foresight), watch for a run on the U.S. banks and widespread dumping of the dollar in favor of the Euro, Yuan, gold, and other safe havens.

http://www.bullionvault.com/#paulfdavis

http://ads.easy-forex.com/Gateway.aspx?gid=104994

The Chinese government says one model for the agency was Temasek Holdings, the Singapore government’s successful investment agency, which manages an $84 billion global portfolio of investments.

China already has the world’s largest foreign exchange holdings, which is growing rapidly because of the country’s huge trade surpluses. According to the International Herald Tribune most of the reserves China now accumulates are conservatively invested in U.S. Treasury bonds and other government securities, which earn little return for China yet help to keep interest rates in the United States and other countries low.

The investment agency allows China to quickly diversify its foreign exchange holdings away from the dollar. Given the fact China and many Asian tigers loaning billions of dollars to the U.S. are disenchanted with America’s imperialistic foreign policy in Iraq, when disgust reaches its peak the dumping of dollars and non-renewing of loans to the U.S. could bankrupt the American economy.

China is ready to aggressively invest its huge trade surpluses as it seeks higher returns away from the dismal dollar. The impact of China’s emergence as a major global investor will be huge and a devastating blow to the U.S. economy as they progressively shift away from dollars in favor of more appreciating assets and higher yielding investments.

Rumor has it that China will soon begin dumping dollars by the billions. Before that happens, the American people would be wise to put their investments and protect their life savings in gold and other currencies such as the Euro and Chinese Yuan (which is greatly undervalued).

The biggest priority in these turbulent and troubling economic times is security, which the dollar no longer provides.

http://www.bullionvault.com/#paulfdavis

http://ads.easy-forex.com/Gateway.aspx?gid=104994

The Chinese government announced the formation of a new agency to oversee investment of China’s $1 trillion in foreign currency reserves, representing a potent new force in international finance. China’s spectacular trade surplus and mighty strength as the lender of last resort to many nations including America, which owes $10 trillion in debt, are raising eyebrows as many investors are dumping dollars and buying China’s Yuan, a highly undervalued currency.

http://www.bullionvault.com/#paulfdavis

http://ads.easy-forex.com/Gateway.aspx?gid=104994

Finance Minister Jin Renqing offered no specifics about how much of the currency reserves would be made available to the investment agency. But analysts say the agency is expected to control one of the world’s biggest investment funds, and one that could singlehandedly alter the value of national currencies on a global scale. As China seeks more attractive investment earnings with its vast financial holdings and moves away from the devaluing dollar, expect the U.S. economy to take a nosedive. When it does (and already beforehand for savvy investors with sufficient foresight), watch for a run on the U.S. banks and widespread dumping of the dollar in favor of the Euro, Yuan, gold, and other safe havens.

http://www.bullionvault.com/#paulfdavis

http://ads.easy-forex.com/Gateway.aspx?gid=104994

The Chinese government says one model for the agency was Temasek Holdings, the Singapore government’s successful investment agency, which manages an $84 billion global portfolio of investments.

China already has the world’s largest foreign exchange holdings, which is growing rapidly because of the country’s huge trade surpluses. According to the International Herald Tribune most of the reserves China now accumulates are conservatively invested in U.S. Treasury bonds and other government securities, which earn little return for China yet help to keep interest rates in the United States and other countries low.

The investment agency allows China to quickly diversify its foreign exchange holdings away from the dollar. Given the fact China and many Asian tigers loaning billions of dollars to the U.S. are disenchanted with America’s imperialistic foreign policy in Iraq, when disgust reaches its peak the dumping of dollars and non-renewing of loans to the U.S. could bankrupt the American economy.

China is ready to aggressively invest its huge trade surpluses as it seeks higher returns away from the dismal dollar. The impact of China’s emergence as a major global investor will be huge and a devastating blow to the U.S. economy as they progressively shift away from dollars in favor of more appreciating assets and higher yielding investments.

Rumor has it that China will soon begin dumping dollars by the billions. Before that happens, the American people would be wise to put their investments and protect their life savings in gold and other currencies such as the Euro and Chinese Yuan (which is greatly undervalued).

The biggest priority in these turbulent and troubling economic times is security, which the dollar no longer provides.

http://www.bullionvault.com/#paulfdavis

http://ads.easy-forex.com/Gateway.aspx?gid=104994

Leave a comment

Filed under america, American economy, american people, bailout, banking, bankruptcies, china, China yuan, death of the dollar, debasing the dollar, Diversify, dollar, dollars, Dump, dumping dollars, dying dollar, economic stabilization, euro, eurozone, finance and economics, financial, financial markets, financial meltdown, Foreign Currency Reserves, gold, greenback, U.S. economy, u.s. mint, us dollar, wall street, wall street woes, wealth and prosperity, worldwide financial meltdown

FBI Mortgage Fraud Task Force – Implications for Real Estate Property Appraisers in Florida

The FBI provided insight into the breadth and depth of mortgage fraud crimes perpetrated against the United States and its citizens, Florida being first and foremost on the list. Current mortgage fraud projections, issues, and hot spots in the troubled U.S. economy have enormous implications to the banking industry and real estate property appraisers in particular.

[b]Mid-State Appraisals founder Paul Davis is a trusted and reputable property appraiser[/b] frequently called upon by Central Florida’s banks, homeowners, and real estate investors to assess property values. A builder for over 20 years and also a real estate broker, Paul Davis brings a wealth of knowledge to the table as an appraiser.

http://www.midstateappraisals.org

midstateappraisals@earthlink.net

A combined effort between banks and real estate property appraisers is needed to adequately identify, prevent, report, and thwart mortgage fraud activity. The FBI’s Financial Crimes Criminal Investigative Division (CID) and Financial Crimes Intelligence Unit are aggressively and cooperatively reporting the latest developments and pertinent data to empower the nationwide mortgage fraud task force.

As mortgage fraud crimes escalate, the burden on federal law enforcement increases. With the anticipated upsurge in mortgage fraud cases, the FBI employed additional strategies to proactively address the crime problem. The FBI works with the Department of Justice (DOJ)-Mortgage Fraud Working Group on a number of mortgage fraud related issues, including the creation and finalization of standard loss valuation criteria associated with mortgage fraud violations, and assisting the banking industry with the construction of a centralized repository of mortgage-related documentation.

The valuation criteria and mortgage related documentation is where real estate property appraisers and their appraisals provided lenders are going to increasingly be monitored and regulated in the near future.

Currently the FBI has mortgage fraud working groups or task forces in 32 field divisions across the country. The FBI divisions stationed in Florida are based out of Miami and Tampa. Moreoever the FBI continues to encourage the use of undercover operations as an effective technique to address mortgage fraud.

The recent stock market crashes across global markets have strongly affirmed, mortgage fraud if not dealt with has the potential to cripple the American economy and all foreign economies closely connected to it. Suspicious Activity Reports (SARs) from financial institutions indicate an increase in mortgage fraud. SARs increased 31-percent to 46,717 during Fiscal Year (FY) 2007. The total dollar loss attributed to mortgage fraud is unknown. However, 7 percent of SARs filed during FY 2007 indicated a specific dollar loss, which totaled more than $813 million.

Subprime mortgage issues remain a key factor in influencing mortgage fraud directly and indirectly. The subprime share of outstanding loans has more than a doubled since 2003 putting a greater share of loans at higher risk of failure. Additionally, during 2007 there were more than 2.2 million foreclosure filings reported on approximately 1.29 million properties nationally, up 75 percent from 2006. The declining housing market affects many in the mortgage industry who are paid by commission. The FBI says during declining markets, mortgage fraud perpetrators may take advantage of industry personnel attempting to generate loans to maintain current standards of living.

Many of the key industry personnel often involved are real estate property appraisers valuing the homes and properties prior to bankers signing off on loans.

Data from law enforcement and industry sources identify the states most affected by mortgage fraud during 2007 and indicated that the top 10 mortgage fraud states for 2007 were Florida, Georgia, Michigan, California, Illinois, Ohio, Texas, New York, Colorado, and Minnesota.

The downward trend in the housing market provides an ideal climate for mortgage fraud perpetrators to employ a myriad of schemes suitable to a down market. Several of these schemes have emerged with the potential to spread as the recent rise in foreclosures, depressed housing prices, and decreased demand place pressure on lenders, builders, and home sellers. Emerging and re-emerging schemes for 2007 included builder-bailouts, seller assistance, short sales, foreclosure rescue, and identity thefts exploiting home equity lines of credit.

Fraudulent practices have become dreadfully systemic within the mortgage industry, as unrestrained mortgage fraud has bankrupted some of the best and longtime solid financial institutions. If the FBI fails to quickly regulate, enforce, and imprison fraudulent professionals within the banking and real estate industry, expect to see the dollar tank along with the U.S. economy. After which consumers will only be able to buy gold, Euros, or China’s Yuan to protect their life savings and investments.

http://ads.easy-forex.com/Gateway.aspx?gid=104994

http://www.bullionvault.com/#paulfdavis

Real estate property appraisers therefore may be the last line of defense to maintain accountability and accuracy before straw buyers succeed in excessively borrowing beyond the market value of a property’s worth and thereby jeopardize the security of loans throughout the banking industry.

Real estate property appraisers must like never before show due diligence when representing their fiduciaries the banks and report to legal authorities any manipulative and coercive attempts by lenders and borrowers to adjust property valuations they sign off on in their appraisal reports.

[b]Mid-State Appraisals founder Paul Davis is a trusted and reputable property appraiser frequently called upon by Central Florida’s banks, homeowners, and real estate investors to assess property values. A builder for over 20 years and also a real estate broker, Paul Davis brings a wealth of knowledge to the table as an appraiser.[/b]

http://www.midstateappraisals.org

Leave a comment

Filed under america, america & politics, American economy, american people, bailout, banking, bankruptcies, confronting corruption, conspiring to defraud, consumer advocacy, consumer fraud, deflation, dollar, dying dollar, economic stabilization, economy, euro, fbi, finance and economics, financial markets, financial meltdown, gold, wall street, wall street woes, wealth and prosperity, worldwide financial meltdown

Secure Investments Considering World’s Best Banking Systems as measured by World Economic Forum

The World Economic Forum has identified the world’s soundest banking systems across the globe. Vital information for any consumer and investor to know in these devastatingly uncertain and turbulent times.

http://www.bullionvault.com/#paulfdavis

http://ads.easy-forex.com/Gateway.aspx?gid=104994

Canada has the world’s soundest banking system. Good news for me considering my wife is Canadian. Should this Yankee need to flee for a financial safe haven (and free health care), Canada will be a great option.

Closely behind followed Sweden, Luxembourg and Australia. As financial crisis and bank failures shake world markets, the survey by the World Economic Forum provided some enlightening and startling information about arrogant and seemingly (now questionably) economic super powers such as Britain and America.

Britain, which once ranked in the top five, has slipped to 44th place behind El Salvador and Peru, after a 50 billion pound ($86.5 billion) pledge this week by the government to bolster bank balance sheets.

The United States, where some of Wall Street’s biggest financial names have collapsed and been crippled in recent weeks, rated only 40, just behind Germany at 39, and smaller states such as Barbados, Estonia and even Namibia, in southern Africa.

The World Economic Forum’s Global Competitiveness Report is worth earnestly heeding and considering before investing in nations whose banking systems are problematic and given to systemic failures.

As for me, I’m extremely bearish on the dollar. Despite short-term gains based on momentary hype, patriotism, and the global credit crunch …look for the central and foreign banks across the globe to dump dollars and buy gold, Euros, Chinese yuan, and Japanese yen. The day of dollar dominance is over!

http://www.bullionvault.com/#paulfdavis

http://ads.easy-forex.com/Gateway.aspx?gid=104994

My advice to investors, follow the lead of the Central and foreign banks. Beware of listening to the U.S. media’s propaganda machine. The world is disenchanted with America thanks to the war in Iraq and U.S. military imperialism to prop up the dollar as OPEC’s currency of choice. America’s longtime arrogance is coming to an end with the death of the dollar.

http://www.bullionvault.com/#paulfdavis

http://ads.easy-forex.com/Gateway.aspx?gid=104994

When the dollar dies, look for the global economy to say good riddance.

The top 20 ranked banking systems are:

1. Canada

2. Sweden

3. Luxembourg

4. Australia

5. Denmark

6. Netherlands

7. Belgium

8. New Zealand

9. Ireland

10. Malta 11. Hong Kong

12. Finland

13. Singapore

14. Norway

15. South Africa

16. Switzerland

17. Namibia

18. Chile

19. France

20. Spain

http://www.bullionvault.com/#paulfdavis

http://ads.easy-forex.com/Gateway.aspx?gid=104994

Leave a comment

Filed under america & politics, American economy, american people, bailout, banking, bankruptcies, banks governors, confronting corruption, conspiring to defraud, consumer advocacy, consumer fraud, dollar, wealth and prosperity, worldwide financial meltdown

Protect Your Savings, Learn from Foreign Central Banks and the Super Rich

In uncertain economic times as these when U.S. banks, government institutions, and the FDIC itself is nearing bankruptcy… don’t be unwise and bet on big brother to take care of you. Let’s not forget the United States of America is the world’s largest debtor nation with $10 trillion and counting amassing billions in interest daily.

http://www.bullionvault.com/#paulfdavis

http://ads.easy-forex.com/Gateway.aspx?gid=104994

Given America’s troubling foreign policy by which it irritates and alienates many of the nations holding its debt and Treasury bills, it won’t be long before the nations of the world and OPEC say no more and opt for other currencies over the dollar.

Be discerning and diligent to guard your hard earned assets and protect your life savings. Learn from the foreign central banks governing monetary policy of nations and the super rich, who diversify their currency reserves and are increasingly adding their holdings of gold, Euros, and Chinese yuan while dumping dollars.

http://www.bullionvault.com/#paulfdavis

http://ads.easy-forex.com/Gateway.aspx?gid=104994

Leave a comment

Filed under American economy, american people, banking, bankruptcies, banks governors, central banks, confronting corruption, currency, death of the dollar, debt arbitration, debt negotiation, dollar, economic stabilization, economy, financial markets, financial meltdown, foreign, greenback, money, protect your savings, rich, wealth and prosperity, worldwide financial meltdown

Foreign Currency Exchange Swap Lines – What Central Banks are Whispering?

In response to continued strains in short-term funding markets, Central Banks across the world have coordinated actions to significantly expand the capacity to provide U.S. dollar liquidity. Central banks publicly commit to continue to work together closely and say they are prepared to take appropriate steps as needed to address funding pressures.

This should serve to drive up the value of the dollar on the short-term (for a month or so) until fear and panic eventually take hold and Central Banks one by one begin dumping dollars.

That being said, there are some short-term possible gains for those who invest in the dollar and substantial long-term gains for those who sell dollars while they are high and opt to invest and protect their savings in strong currencies such as the Euro and Chinese yuan. Of course a safe haven for consumers and investors with less intestinal fortitude would be gold.

http://www.bullionvault.com/#paulfdavis

http://ads.easy-forex.com/Gateway.aspx?gid=104994

The U.S. Federal Reserve announced several initiatives to support financial stability and to maintain a stable flow of credit to the economy during this period of significant strain in global markets.

The Fed commits to continue to adapt these liquidity facilities as necessary and will keep them in place as long as circumstances require.

Actions by the Federal Reserve include:  (1) an increase in the size of the 84-day maturity Term Auction Facility (TAF) auctions to $75 billion per auction from $25 billion beginning with the October 6 auction, (2) two forward TAF auctions totaling $150 billion that will be conducted in November to provide term funding over year-end, and (3) an increase in swap authorization limits with the Bank of Canada, Bank of England, Bank of Japan, Danmarks Nationalbank (National Bank of Denmark), European Central Bank (ECB), Norges Bank (Bank of Norway), Reserve Bank of Australia, Sveriges Riksbank (Bank of Sweden), and Swiss National Bank to a total of $620 billion, from $290 billion previously.

These steps are being undertaken in an attempt to mitigate pressures evident in the term funding markets both in the United States and abroad.  The Federal Reserve’s actions are desiring to reassure financial market participants that financing will be available against good collateral, which they hope will lessen concerns about funding and rollover risk.

84-Day Maturity TAF Auctions
The increase to $75 billion per auction will triple the supply of 84-day maturity credit to $225 billion from $75 billion.  TAF credit at the 28-day maturity will remain at $75 billion.  The total amount of TAF credit available in the 28-day and 84-day auction cycles will double to $300 billion from $150 billion.

Foreign Exchange Swap Lines
The Federal Open Market Committee (FOMC) has authorized a $330 billion expansion of its temporary reciprocal currency arrangements (swap lines).  This increased capacity will be available to provide funding for U.S. dollar liquidity operations by the other central banks.  The FOMC has authorized increases in all of the temporary swap facilities with other central banks.  These larger facilities will now support the provision of U.S. dollar liquidity in amounts of up to $30 billion by the Bank of Canada, $80 billion by the Bank of England, $120 billion by the Bank of Japan, $15 billion by Danmarks Nationalbank, $240 billion by the ECB, $15 billion by the Norges Bank, $30 billion by the Reserve Bank of Australia, $30 billion by the Sveriges Riksbank, and $60 billion by the Swiss National Bank.  As a result of these actions, the total size of outstanding swap lines is $620 billion.

All of the temporary reciprocal swap facilities have been authorized through April 30, 2009.

Dollar funding rates abroad have been elevated relative to dollar funding rates available in the United States, reflecting a structural dollar funding shortfall outside of the United States.  The increase in the amount of foreign exchange swap authorization limits will enable many central banks to increase the amount of dollar funding that they can provide in their home markets.  This should help to improve the distribution of dollar liquidity around the globe. Whether the value of the dollar holds on the long term against inflation and deflation however is highly unlikely.

That being said, there are some short-term possible gains for those who invest in the dollar and substantial long-term gains for those who sell dollars while they are high and opt to invest and protect their savings in strong currencies such as the Euro and Chinese yuan. A more cautious and safe route for consumers and investors is also found in the safe haven of gold.

http://www.bullionvault.com/#paulfdavis

http://ads.easy-forex.com/Gateway.aspx?gid=104994

Leave a comment

Filed under america & politics, American economy, american people, banking, bankruptcies, banks governors, central banks, currency, death of the dollar, deflation, dollar, dying dollar, economic stabilization, economy, exchange, finance and economics, finance ministers, financial markets, financial meltdown, foreign, swap lines, wall street, wall street woes, wealth and prosperity, worldwide financial meltdown

IMF warns of financial meltdown – Eurozone Strengthens, U.S. Dollar Weakens

The IMF warns that the global financial system is on the brink of a massive meltdown, while France and Germany push ahead with a pan-European crisis response to try to prevent the worst global downturn in decades.

What can one do in such perilous times other than buy gold and invest your savings in Euros before the dollar becomes obsolete.

 

http://www.bullionvault.com/#paulfdavis
http://ads.easy-forex.com/Gateway.aspx?gid=104994

At a joint news conference, French President Nicolas Sarkozy and German Chancellor Angela Merkel said they had “prepared a certain number of decisions” to present at a Sunday meeting of European leaders as they work feverishly to restore blocked credit markets to working order.

International Monetary Fund stressed that time was running short after leading industrialized nations failed to agree on concrete measures to end the crisis at a meeting on Friday.

“Intensifying solvency concerns about a number of the largest U.S.-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown,” IMF chief Dominique Strauss-Kahn said.

Low levels of confidence in America’s financial system has caused widespread panic to swiftly sweep through global markets, driving stocks to a five-year low on Friday and prompting banks to protectively hoard cash. That has devastatingly choked off lending to businesses and households, threatening to turn a global economic recession into a dangerously deep depression for perhaps years. Many across America are losing their homes, as is now the case in Australia.

An emergency meeting of euro zone leaders on Sunday will discuss a bank rescue package, taking a British initiative to guarantee lending between banks as a reference point, a source close to the French presidency said.

France’s Sarkozy said euro zone countries were working on a joint solution, but declined to provide specifics. He planned to meet with British Prime Minister Gordon Brown shortly before Sunday’s euro zone gathering.

 

Britain’s rescue plan, launched last week, makes available 50 billion pounds ($86 billion) of taxpayers’ money for injection into its banks and, crucially, calls for underwriting interbank lending, which has all but frozen around the globe.

The world’s richest nations vowed on Friday to take all necessary steps to unfreeze credit markets and ensure banks can raise money but they offered no real specifics on a collective course of action to avert the recession threat. Hence can anyone be sure when so much is promised, but so little usually done in America?

In a surprisingly brief statement after a 3-1/2 hour meeting, the G7 — the United States, Britain, Canada, France, Germany, Italy and Japan — stopped short of backing the British interbank lending guarantee, something many on Wall Street saw as vital to end growing market panic.

Kenneth Rogoff, a Harvard University professor and former IMF chief economist, said the G7 would have been better served adopting some version of the British plan so that banks would feel confident enough to loosen their grip on lending.

“Saying that they’ll take all steps necessary leaves hanging the question of whether they know what is best and necessary,” he told Reuters. “It was a signature moment for the G7. I think markets are going to be very disappointed.”

European Central Bank President Jean-Claude Trichet said markets needed time to digest a series of dramatic steps taken by world central banks in recent days, including pouring billions of dollars into financial markets and lowering interest rates in the broadest coordinated cut on record.

There are signs the U.S. economy is credit-starved and deteriorating fast. American auto makers have been hammered by the credit crunch. GM and Chrysler, two struggling auto makers, are considering a merger to secure cash and cut expenses.

Financial weekly Barron’s reported that GM was preparing to approach the U.S. Federal Reserve about borrowing money directly from the central bank. Many wonder just how many companies and banks the central bank in the United States can bail out before going bankrupt itself?

Some speculate the FDIC insuring American banks deposits will declare bankruptcy next.

What can one do in such perilous times other than buy gold and invest your savings in Euros before the dollar becomes obsolete.

http://www.bullionvault.com/#paulfdavis

http://ads.easy-forex.com/Gateway.aspx?gid=104994

Leave a comment

Filed under American economy, banking, bankruptcies, banks governors, central banks, debt management, deflation, dollar, eurozone, finance and economics, finance ministers, financial meltdown, g7, gold, imf, international monetary fund, U.S. economy, u.s. mint, us dollar, worldwide financial meltdown