Eeyore's news and view

More paper for the bon fire
Fed to buy commercial paper from mutual funds October 21, 2008 - 9:26am
By JEANNINE AVERSA AP Economics Writer
WASHINGTON (AP) - The Federal Reserve announced Tuesday that it will start buying commercial paper _ a crucial short-term funding mechanism many companies rely on for day-to-day operations _ from money market mutual funds.
It's the latest effort by the central bank to break through a credit clog that has hobbled lending and threatens to plunge the country into a deep and painful recession.
The Fed is tapping its Depression-era emergency powers and creating a new facility to buy a vast array of commercial paper from the funds. Money market mutual funds have been under pressure as skittish investors demand withdrawals. Many companies rely on commercial paper to pay workers and buy supplies.
The situation has led to an intense credit crunch for companies depending on commercial paper.
"The short-term debt markets have been under considerable strain in recent weeks as money market mutual funds and other investors have had difficulty selling assets to satisfy redemption requests," the Fed explained.
The Fed plans to buy an array of commercial paper from the funds _ including some that is not backed by assets as well as those with remaining maturities of 90 days or less. The Fed also will buy dollar-denominated certificates of deposit.
By doing so, the Fed hopes to improve conditions so banks and other financial institutions will be more inclined to lend to each other, and to consumers and businesses.
"Improved money market conditions will enhance the ability of banks and other financial intermediaries to accommodate the credit needs of businesses and households," the Fed said.
For about a month, the Fed has been making billions of dollars worth of loans to money market mutual funds _ via banks _ to help relieve pressures on the funds. And, in a separate program that launches on Oct. 27, the Fed will buy vast amounts of commercial paper from an array of companies.
http://wtop.com/?nid=111&sid=1501144

We lack character as a country so this and the other suicides don't surprise me in the least
More middle-aged women are committing suicide October 21, 2008 - 8:11am
WASHINGTON - More middle-aged women are committing suicide.
Johns Hopkins researchers say middle-aged whites are emerging as "a new high-risk group."
While the overall suicide rate rose 0.7 percent between 1999 and 2005, the annual rate for middle-aged white women between 40 and 64 rose 3.9 percent and 2.7 percent for white men.
The raw numbers for white women in this age group show a 35 percent jump, from 2,429 suicides in 1999 to 3,280 in 2005. For white men, the number show a 33 percent jump from 7,916 to 10,535 during the same time frame.
The analysis from researchers at the Bloomberg School of Public Health at Johns Hopkins University is published online in the American Journal of Preventive Medicine.
The increase is seen as a major shift. Previously, it had been that teens, young adults and senior citizens who had highest risk for suicide, says Susan Baker, a professor in injury prevention with a special expertise in suicide.
Researchers say the numbers are not "just little blips." They've analyzed a lot of data -- publicly available death certificate data from the U.S. Centers for Disease Control and Prevention.
Shootings remain the most common method of suicide, although poisonings have increased sharply, especially among women. The research finds more men and women are hanging or suffocating themselves.
Baker says more needs to be known about why the patterns of suicide are shifting and under what conditions the victims were living.
Bonnie Bear of the San Diego-based Survivors of Suicide Loss, an education and support group, tells USA TODAY that divorce and financial stress pushes people over the edge.
She worries the nation's financial crisis will prompt more suicides among middle-aged adults.
Janice Wassell, a demographer at the University of North Carolina-Greensboro, says the group with the higher rates -- those 45 to 49 -- are more alienated and isolated. They were kids when the divorce rate went up.
http://wtop.com/?nid=106&sid=1501108

These next two article are what i see happening to the US as it slides in to third world status, there have been a number of cut backs on the State level which will lead to this type of thing, if not taken care of.
Zimbabwe: Cholera Outbreak Threatens to Become Endemic
20 October 2008Posted to the web 20 October 2008
Harare
A cholera outbreak that has bridged Zimbabwe's dry season is proving difficult to contain and has spread from the cities to rural areas.
There are fears that the onset of the rainy season could make the waterborne disease endemic if the authorities fail to address the water and sanitation crisis plaguing the county.
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Cholera is an intestinal infection causing acute diarrhoea and vomiting and, if left untreated, can cause death from dehydration within 24 hours. It is easily treatable with rehydration salts.
An anthrax outbreak has also been reported in Hurungwe, a rural area in Mashonaland West Province, about 300km north of the capital, Harare, "where 10 cases have been reported, but no deaths as yet. WHO [World Health Organisation] is still investigating", the UN said in a recent situation report on cholera and anthrax.
Anthrax is caused by the bacterium, Bacillus anthracis, and mostly affects wild animals and domesticated cattle, although it can be transferred to humans through inhalation of the bacteria's spores from a live or infected dead animal, blood contact if the skin is broken, or by eating the undercooked meat of a diseased animal. Anthrax is curable if diagnosed early.
120 deaths
The UN noted that "a cholera outbreak has been a cause of concern in Zimbabwe since February 2008 ... so far 120 deaths have been recorded cumulatively, with the highest percentage found in Mashonaland Central" Province in the country's north.
The collapse of health and municipal services is seen as the cause for the spread of the disease, with local authorities failing to provide potable water, rubbish collection and adequate sanitation, forcing people to dig shallow wells to obtain household and drinking water in areas where sewerage spills into streets because of poor, or non-existent, maintenance regimes.
The state-owned Zimbabwe National Water Authority (ZINWA) has pumped raw sewerage into Lake Chivero, one of the reservoirs providing Harare with water; residents with access to piped water often have to contend with a smelly greenish discharge from their taps.
The UN noted in its report that Zimbabwe was battling three cholera outbreaks in different locations. Chitungwiza, a dormitory town 35km southeast of Harare, had recorded 144 cholera cases and 15 deaths up to 13 October. UNICEF has been trucking in 30,000 litres of water daily and providing hygiene education.
In Mola, in the western district of Kariba, there were 22 cases with one fatality as of 7 October, and "probably more cases within the community, unrecognised", the UN report said.
Chinhoyi, in Mashonaland West Province, had recorded 6 deaths by 13 October, and WHO reported another 15 cases the following day, but "many more are assumed to be in the community, and paediatric cases are being admitted to the hospital."
Recurring disease
A cholera outbreak on 31 August in Harare affected the townships of Mbare, Kuwadzana, Highfields, Chikurubi and Mbvuku, in which 19 cases and one death were recorded. The last case was reported on 24 September.
Nevertheless, even where the cholera outbreaks have been brought under control, the UN report warns: "These locations remain potentially risk areas, considering cholera [is a] recurring trend."
The Combined Harare Residents Association (CHRA) said in a statement that Zimbabwe's political deadlock between President Robert Mugabe's ZANU-PF and Morgan Tsvangirai's Movement for Democratic Change was having a direct impact on the provision of services.
"The water woes that have seen many Harare residents losing their lives to cholera outbreaks are a result of the ruthless decision to hand over the administration of water and sewer services to ZINWA," the statement said.
"CHRA urges the powers that be to stop burying their heads in the sand and attend to the governance stalemate as a matter of urgency."
http://allafrica.com/stories/200810201412.html

Iraq cholera cases on the rise September 25, 2008 - 5:48am
BAGHDAD (AP) - Iraq's Health Ministry is reporting a total of 327 confirmed cholera cases in central and southern Iraq since an outbreak of the disease last month.
Dr. Ihsan Jaafar, the ministry spokesman, says Babil province south of Baghdad has had 200 cases, while 61 others were reported in Baghdad province.
The statement Thursday says the death toll from the outbreak stands at five.
Cholera is a gastrointestinal disease that can be spread by a lack of clean drinking water. The problem has been worsened by the poor state of Iraq's infrastructure after years of neglect and war.
http://wtop.com/?nid=105&sid=1484921

We will finish up with a few partical articles on the World's economy
French Government to inject €10.5bn into top six banks
France’s top six banks are to receive a €10.5 billion (£8.2 billion) cash injection from the Government by the end of the year in a move designed to oil the wheels of a rusting economy, Christine Lagarde, the Finance Minister, said last night.
Mrs Lagarde, who announced the initiative after a meeting with bank executives, said the State would subscribe to subordinated debt, but not take shares in the groups.
Under the plan, Crédit Agricole will receive €3 billion, BNP Paribas €2.55 billion, Société Générale €1.7 billion, Crédit Mutuel €1.2 billion, Caisse d’Epargne €1.1 billion and Banque Populaire €950 million.
Mrs Lagarde said the Government was prepared to inject a further €10.5 billion next year “if tensions persist in the markets”. (read the rest at)
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4981639.ece

Sweden launches financial rescue package
Sweden has become the latest country to launch a financial rescue package, after pledging more than 1.5 trillion Swedish kronor (£117bn) to support its financial firms.
The government will offer guarantees on bank loans up to a total of 1.5 trillion kronor and has set aside 15bn kronor in a "financial stabilisation fund", which would be used to buy shares in banks that fall into trouble.
Sweden's central bank also said it would issue a $10bn (£5.7bn) loan on Wednesday to help the credit markets.
It follows similar moves by the US, UK and European Central Bank, which have seen interbank lending rates decline as confidence begins to creep back into the markets.
(the rest of the article is at )
http://www.telegraph.co.uk/news/worldnews/europe/sweden/3229459/Sweden-launches-financial-rescue-package.html

Iceland agrees $6 billion deal with IMF
The credit crunch claimed its first sovereign scalp last night as Iceland readied itself to accept an International Monetary Fund (IMF) bailout. The North Atlantic nation is believed to have negotiated a $6 billion (£3.49 billion) IMF-led rescue package backed by the central banks of its Nordic cousins, although the IMF has yet to make a formal announcement.
The last Western country to turn to the IMF was Britain, which called the international lender of last resort in 1976 when the banking system was facing collapse and foreign currency reserves had run dry.
The IMF may provide about $1 billion in emergency cash for Iceland with the balance lent by Norway, Sweden and Denmark and additional money possibly coming from Russia and Japan. Iceland, which has the same population as Coventry, had hoped that a bigger loan from Russia would save it from the humiliation and financial strictures of an IMF bailout.
Bjorgvin Sigurdsson, the Icelandic Banking and Commerce Minister, told The Times last night: “The talks with the IMF have progressed so that we are now at a stage where conditions, pros and cons are being looked over.” (the rest of the article is at)
http://business.timesonline.co.uk/tol/business/economics/article4982010.ece

No Chinese cash bailout for Pakistan, next stop IMF
*New York Times report says Zardari returned from Beijing without commitmentBy Khalid HasanWASHINGTON: Contrary to expectations, China has refused Pakistan the immediate cash injection of $1.5 billion to $3 billion it was seeking, leaving Islamabad no alternative but to go to the International Monetary Fund (IMF), according to a report in the New York Times on Sunday.Filed from Islamabad by correspondent Jane Perlez, the report said that President Asif Ali Zardari had returned from Beijing without a commitment. A Chinese official was quoted as having told a Western diplomat, “We have done our due diligence, and it isn’t happening.” Javed Burki, a former Pakistani finance minister, said China had provided $500 million in balance-of-payments support in 1996, when Pakistan was on the brink of default. But those days are over, he said, because China is no longer inclined to grant cash outright without structural reforms from the receiving government.Shaukat Tareen, the new financial adviser, who accompanied Zardari to China, was seen as preparing the public for an IMF programme on Saturday by saying for the first time at a news conference that if Pakistan could not stabilise its economy within 30 days, it “can go to the IMF as a backup”. Then he added, “We may have to go to Plan B.” According to the report, “With the United States and other nations preoccupied by a financial crisis, and Saudi Arabia, another traditional ally, refusing to offer concessions on oil, China was seen as the last port of call before the IMF. Accepting a rescue package from the fund would be seen as humiliating for Mr Zardari’s government, which took office this year. An IMF-backed plan would require Pakistan’s government to cut spending and raise taxes, among other measures, which could hurt the poor, officials said.”The report also said that Saudi Arabia had refused to grant the oil facility Pakistan was seeking. State Bank Governor Shamshad Akhtar told the newspaper on Saturday, “We are very open to all kinds of financial support. We’ve taken a lot of corrective actions, and we plan to take more.”
http://www.dailytimes.com.pk/default.asp?page=2008%5C10%5C20%5Cstory_20-10-2008_pg1_2