Citizens Electoral Council of Australia
Media Release 8th May 2007
Craig Isherwood, National Secretary
PO Box 376, COBURG, VIC,
3058
Phone: 03 9354 0544 Fax: 03 9354 0166
Email: cec@cecaust.com.au
Website: /
Mortgage meltdown escalates, invokes LaRouche approach
The New
York Federal Reserve warned on May 2nd that the "concentrations of risk" of
hedge funds match the situation in 1998 before the LTCM hedge fund blew up,
nearly taking down the international monetary system with it.
The next day UBS shut down its $1.8 billion hedge fund, Dillon
Read Capital Management, after making some $125 million of losses in
mortgage backed securities (MBS).
Reports that total MBS losses in the first quarter of 2007 were around $20
billion, are vastly understated, given that General Motor's financial arm, GMAC,
alone reported losses worth $1 billion. EIR's assessment is that total losses
are probably upwards of $100 billion.
The Bank
of England and have made warnings similar to that of the U.S. Fed in the last week.
Numerous countries are beginning to prepare for the collapse by implementing
LaRouche's policy prescriptions. On May 3, the Finance Ministers of six South
American countries agreed to establish the Bank
of the South, as a stepping stone to "a new world financial architecture."
See http://larouchepac.com/ for
more detail, including a new LaRouche piece, "End Game Forecasts".
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