Mortgage Crisis

US government lets JPMorgan off the hook for mortgage fraud

By Andre Damon and Barry Grey, 20 November 2013

The settlement between JPMorgan and the Justice Department includes no admission of criminal wrongdoing, and the company will get a tax deduction on most of its fine.

The housing crisis in Richmond, California and the debate over “eminent domain”

By David Levine, 17 September 2013

The eminent domain program proposed by the city of Richmond, California is a political diversion that will do little to remedy the housing crisis.

Another sweetheart bank settlement on mortgage fraud

By Andre Damon, 9 January 2013

The settlement reached with US bank regulators on Monday includes a paltry payment to defrauded homeowners, while ensuring that no one is criminally prosecuted.

Illinois leads US in home foreclosures

By Marcus Day, 9 October 2012

Foreclosure activity in Illinois shot up 42 percent from one year ago, giving the state the highest foreclosure rate in the US.

Illinois foreclosures skyrocket

By Marcus Day, 21 June 2012

Foreclosure activity in Illinois jumped 29 percent between April and May, and is 54 percent higher over the year.

Fears grow over European banks

By Nick Beams, 18 May 2012

Every day brings the bankruptcy of Greece and its exclusion from the eurozone a step closer, with incalculable consequences for the European and global financial system.

Obama administration brokers pro-bank mortgage fraud settlement

By Joseph Kishore, 10 February 2012

The terms of the agreement announced Thursday are entirely favorable to the banks, while doing little or nothing to aid the millions of people who have been devastated by the collapse of the US housing market.

Financial markets fear Chinese economic instability

By John Chan, 22 July 2011

The reasons for concern about China are obvious—the global economy is now dependent on China to an unprecedented extent.

Nearly 30 percent of US homeowners now “underwater”

Total value of homes fell $2 trillion last year

By David Walsh, 10 February 2011

Home prices in the US dropped 2.6 percent in the final quarter of 2010, the largest drop since the first three months of 2009, according to Zillow Inc’s quarterly real estate survey.

G20 summit fails to resolve global trade, currency conflicts

By Barry Grey, 13 November 2010

The G20 summit of leading economies held in Seoul, South Korea concluded Friday without any agreement on policies to bridge differences over global currency and trade issues.

US mortgage crisis: The case for public ownership

By Tom Eley, 23 October 2010

In the face of mounting evidence of systematic fraud by leading US banks in the foreclosure and eviction of millions of families from their homes, the Obama administration continues to oppose a moratorium on foreclosures.

US banks fake documents to rush foreclosures

By Tom Eley, 7 October 2010

Major banks faked documents in order to put foreclosures on an assembly line, in the process trampling over state and federal laws.

Two years since the collapse of Lehman Brothers

By Nick Beams, 15 September 2010

Two years after the collapse of Lehman Brothers sparked the greatest financial and economic crisis since the Great Depression of the 1930s, none of the underlying contradictions of the world capitalist system has been resolved.

Markets stabilise but “smell of fear” is in the air

By Nick Beams, 24 May 2010

Global markets stabilised at the end of last week but there are deepening concerns that the turmoil resulting from the eurozone financial crisis is only just beginning.

Australia: Labor government ends bank guarantee

By Alex Messenger, 20 February 2010

According to the Australian government, its decision to no longer guarantee new offshore borrowings by the banks is further proof of the economy’s return to health. The claim is quite simply false.

Sovereign debt fears signal new stage of global crisis

By Barry Grey, 6 February 2010

Stock markets in Europe and Asia fell sharply Friday in the second day of a near-panic selloff fueled by fears that the debt crisis facing weaker European economies will throw the world economy into a “double-dip” recession.

Record US foreclosures in 2009

By Tom Eley, 16 January 2010

A record 2.82 million US homes faced foreclosure in 2009—well over 1 in 50 in the space of just one year. It is anticipated that at least 3 million more will enter foreclosure in 2010.

Billions more for bailout of US mortgage giants

By Andre Damon, 30 December 2009

The US Treasury announced Thursday that it will remove a cap on federal support to mortgage giants Fannie Mae and Freddie Mac, extending to the firms an unlimited amount of funds for three years.

US home foreclosures top one million mark

By Andre Damon, 23 December 2009

The number of US homes in foreclosure topped the one million mark for the first time ever, according to figures released this week by federal agencies.

Australia’s “rock solid” banks: the financial crisis one year on

By Alex Messenger, 11 November 2009

The corporate press claims that the Australian financial system has survived the global financial crisis because of good regulation and sound banking practice. In truth, Australian banks only survived because of unprecedented government intervention.

US: GDP figure masks deepening economic crisis

By Barry Grey, 30 October 2009

The Commerce Department on Thursday reported that the US gross domestic product (GDP) grew 3.5 percent on an annualized basis in the third quarter, breaking a string of four consecutive quarters of negative growth.

Great power conflicts overhang G20 summit in Pittsburgh

By Barry Grey, 24 September 2009

As political leaders gather for the Group of 20 summit of major economies, to be held today and Friday in Pittsburgh, they face the task of papering over increasingly open and embittered conflicts over policies to revive the world economy and prevent another financial disaster.

World Economic Forum: False hopes in a China-led recovery

By John Chan, 18 September 2009

Corporate leaders and officials gathered in Dalian to pay homage to China as the bright spot of global capitalism. However, closer examination reveals that the Chinese economy is just as fragile as its counterparts in America and Europe.

Study reports worst of US mortgage crisis still to come

By Charles Knause, 10 September 2009

A recent Deutsche Bank report made public last month indicates that the mortgage crisis for US homeowners is still in an early phase, and the worst is still to come.

As layoffs, foreclosures mount

US Federal Reserve hails prospects for a business recovery

By Barry Grey, 14 August 2009

The Federal Reserve Board said Wednesday that the US economy was “leveling out,” even as new data on unemployment, home foreclosures, home prices and retail sales painted a picture of growing economic distress for tens of millions of Americans.

Obama mortgage plan aids banks, not homeowners

By David Walsh, 6 August 2009

The Obama administration’s home mortgage modification program, launched with great fanfare earlier this year, has assisted a mere fraction of those in danger of losing their homes, and the outrage of homeowners is growing.

CIT crisis threatens wave of business failures and layoffs

By Barry Grey, 18 July 2009

The collapse of CIT’s efforts to secure government relief on Wednesday has left the 101-year-old bank teetering on the edge of bankruptcy and threatens a cut-off of funding to retailers and suppliers. That could result in a wave of bankruptcies and closures, leading to tens of thousands of layoffs.

Record pay and profits at Goldman Sachs

By Andre Damon and Barry Grey, 15 July 2009

Goldman Sachs, which received $10 billion in government bailout cash, reported record profits and compensation in its second-quarter earnings report.

Two summits in Russia: A cautious challenge to the US

By John Chan, 22 June 2009

Two summits in Yekaterinburg last week involving the emerging powers—Russia, China, Brazil and India—signal a shift in economic and strategic alignments under the impact of the global financial crisis.

Stoking hunger and homelessness: North Carolina jobless rate remains in double-digits

By Rosa Lexington, 23 May 2009

Unemployment in North Carolina remained at 10.8 percent in April, one of eight US states with double-digit jobless rates last month.

Bank demolishes new Southern California homes, citing low profit-potential

By Shannon Jones, 8 May 2009

Texas-based Guaranty Bank has decided to have 16 homes destroyed in the desert community of Victorville because the estimated $1 million cost to complete them was more than it could make selling them.

As Obama pledges more bailouts

US banks step up home foreclosures

By Barry Grey, 16 April 2009

Obama is providing massive subsidies to the very banks and financial firms that are boosting their profits by intensifying their assault on the working class.

WTO forecasts huge drop in global trade

By Peter Symonds, 28 March 2009

In a report released this week, the World Trade Organisation (WTO) has predicted a decline in global trade this year of 9 percent by volume—the largest since World War II.

The capitalist crisis and the return of history

By David North, 26 March 2009

David North, the national chairman of the Socialist Equality Party (US), spoke last week at San Diego State University (March 19) and University of California, Berkeley (March 22) on “The Capitalist Crisis and the Return of History.” We publish here the notes upon which his lectures were based.

US Federal Reserve announces massive increase in government debt

By Barry Grey, 20 March 2009

The US Federal Reserve Board on Wednesday announced that it will massively expand its moves to pump liquidity into near-frozen credit markets, including a highly unusual plan to purchase up to $300 billion in longer-term Treasury securities over the next six months.

IMF report: World economy to shrink 1 percent this year

By Andre Damon, 20 March 2009

The IMF published a chilling set of statistics Thursday, cutting its estimate for world economic growth this year and revealing that the world economy contracted at the sharpest rate on postwar record in the last part of 2008.

Economic slump deepens in Japan as exports collapse

By Peter Symonds, 26 February 2009

The collapse of Japanese exports last month underscores just how rapidly economic recession is turning into a full-blown depression—and not just in Japan.

Nick Beams opening report to SEP summer school

The crash of 2008 and its revolutionary implications

Part 4

By Nick Beams, 7 February 2009

“What flows from our assessment of the origins of the present situation is that nothing less than an international socialist revolution can overcome the crisis of the capitalist mode of production and, moreover, that is the only way to prevent mankind being plunged into a catastrophe.”

US-China trade tensions set to escalate

By John Chan, 3 February 2009

By threatening to list China as a “currency manipulator,” the Obama administration has signalled a more confrontational approach to Beijing.

Worst US economic contraction in quarter century

By Peter Symonds, 31 January 2009

Grim figures released by the US Commerce Department further confirm the severity of the economic contraction in the US and globally.

IMF expects global economy to come to “virtual halt” in 2009

By Patrick O’Connor, 29 January 2009

The IMF yesterday forecast world GDP growth of just 0.5 percent this year, the lowest since World War II.

US unemployment rate at 7.2 percent after biggest yearly job loss since 1945

By Barry Grey, 10 January 2009

The December jobless rate is the highest since January of 1993. For all of 2008, the US economy had a net loss of nearly 2.6 million jobs, the worst annual decline since 1945, when the war-time economy was being demobilized.

Nick Beams answers letters on Keynesianism

By Nick Beams, 8 January 2009

Nick Beams replies to correspondence on Keynesianism, the Great Depression and the global crisis of capitalism.

The crash of 2008 and the prospects for 2009

2 January 2009

2008 was the year when the supposedly impossible happened: The world capitalist system underwent a financial breakdown which now threatens to repeat, or even eclipse, that which began in 1929.

Year-end data shows deeper slump in US

By Barry Grey, 31 December 2008

Data released Tuesday on US consumer confidence, home prices and holiday retail sales all point to an acceleration and deepening of what is broadly acknowledged to be the worst recession since the Great Depression of the 1930s.

US: Christmas marked by declining sales as unemployment climbs

IMF economist warns of “Great Depression”

By Joe Kishore, 27 December 2008

US sales figures confirm a bleak holiday shopping season, as broad sections of the population have been hit by a deepening economic recession. As the world enters the New Year, the Great Crash of 2008 is turning into the global depression of 2009.

A lecture by Nick Beams

The World Economic Crisis: A Marxist Analysis—Part 4

By Nick Beams, 23 December 2008

The following is Part 4 of a lecture delivered by Nick Beams, national secretary of the Socialist Equality Party (Australia) and a member of the International Editorial Board of the World Socialist Web Site, to audiences in Perth, Melbourne and Sydney in November and December, 2008.

A lecture by Nick Beams

The World Economic Crisis: A Marxist Analysis—Part 3

By Nick Beams, 22 December 2008

Published today is the third part of a lecture delivered by Nick Beams, national secretary of the Socialist Equality Party (Australia) and a member of the International Editorial Board of the World Socialist Web Site, to audiences in Perth, Melbourne and Sydney in November and December, 2008.

Lecture by Nick Beams

The World Economic Crisis: A Marxist Analysis

Part 2

By Nick Beams, 20 December 2008

The following is the second part of a lecture delivered by Nick Beams, national secretary of the Socialist Equality Party (Australia) and a member of the International Editorial Board of the World Socialist Web Site, to audiences in Perth, Melbourne and Sydney in November and December, 2008.

A lecture by Nick Beams

The World Economic Crisis: A Marxist Analysis

Part 1

By Nick Beams, 19 December 2008

The following is the first part of a lecture delivered by Nick Beams, national secretary of the Socialist Equality Party (Australia) and a member of the International Editorial Board of the World Socialist Web Site, to audiences in Perth, Melbourne and Sydney in November and December, 2008. Part 2 will be published tomorrow and subsequent parts over the next few days.

China slumps as global recession deepens

By Mike Head, 17 December 2008

In the latest shock to the global economy, China’s industrial production is declining sharply. Only months ago, China was still reporting double-digit economic growth and commentators were speculating that China’s boom would help global capitalism avoid a depression on the scale of the 1930s.

New Zealand: Job cuts mount as recession deepens

By Tom Peters and Chris Ross, 16 December 2008

Recent statistics confirm that thousands of New Zealanders are losing their jobs as the country’s recession deepens.

China on the verge of unemployment explosion

By John Chan, 15 December 2008

After 30 years as a giant cheap labour platform for the world’s major corporations, China cannot avoid being dragged into the greatest financial crisis since the 1930s. With the economy slowing rapidly, unemployment is set to skyrocket and social discontent will explode.

Mining crash signals “unmitigated disaster” for Australian economy

By Mike Head, 15 December 2008

A sharp contraction in China’s imports last week has shattered the efforts of the Rudd government and the media to insist that the local economy will be spared the worst of the global meltdown.

Audience members discuss Nick Beams’s lecture

15 December 2008

After Nick Beams’s lectures on “The World Economic Crisis: A Marxist Analysis,” WSWS correspondents asked audience members for their impressions and reactions.

Nick Beams presents Marxist analysis of global economic breakdown to Australian audiences

By our reporters, 15 December 2008

Appreciative audiences heard Nick Beams, a member of the WSWS International Editorial Board and national secretary of the Socialist Equality Party (SEP) in Australia, deliver a powerful series of lectures on “The World Economic Crisis—A Marxist Analysis” in Perth, Melbourne and Sydney over the past two weeks.

South Korean economy heading toward negative growth in 2009

By John Chan, 12 December 2008

There are growing signs that the world’s 13th largest economy, the Republic of Korea, is among the most vulnerable to the global financial crisis. The latest forecasts point to an economic contraction in 2009 for the first time since the Asian financial crisis 10 years ago.

China’s economic growth rate continues to tumble

By John Chan, 5 December 2008

The Chinese regime is clearly in a crisis over how to deal with the increasingly severe global recession, which is already producing widespread plant closures, rising unemployment and social unrest.

Australian economy on edge of recession

By Linda Levin, 4 December 2008

National accounts figures released yesterday by the Australian Bureau of Statistics demonstrated that the economy was already on the brink of recession in the September 2008 quarter—even before the collapse of Lehman Brothers and the ensuing global financial meltdown.

Sharp conflicts in Europe over economic stimulus program

By Peter Schwarz, 3 December 2008

German Chancellor Angela Merkel (Christian Democratic Union, CDU) has become the focus of criticism for her refusal to support a wide-ranging package of measures aimed at stimulating the European economy.

Iceland: Street protests against government and economic meltdown

By Jordan Shilton, 29 November 2008

Thousands protested in the Icelandic capital Reykjavik last Saturday, calling for the resignation of the government and for early elections. The protest follows weeks of unrest on the streets, in the aftermath of the banking collapse last month that left the economy in meltdown.

CEOs “cashed out” prior to economic crisis

By Tom Eley, 28 November 2008

A recent survey by the Wall Street Journal reveals that CEOs at major US financial and real estate firms converted tens of millions of dollars of overvalued stock into cash prior to the eruption of the current financial crisis.

Britain: Labour’s secret plans for tax hikes and spending cuts revealed

By Chris Marsden, 28 November 2008

Leaked documents reveal that the Labour government contemplated raising Value Added Tax to 18.5 percent in Chancellor Alistair Darling’s pre-budget announcement.

US commits $800 billion more to bail out consumer credit and mortgage market

By Patrick O’Connor, 27 November 2008

US Treasury Secretary Henry Paulson announced Tuesday another extension of the Bush administration’s bailout of the financial system, committing $800 billion towards lending programs aimed at preventing the collapse of the home mortgage and consumer credit market.

Australia: Key economic indices indicate slide towards recession

By Terry Cook and Linda Levin, 27 November 2008

Despite claims to the contrary by the Reserve Bank of Australia and government officials, a number of key indicators point to the depth of the crisis now gripping the Australian economy.

US bails out Citigroup and prepares to give trillions more to banks

By Barry Grey, 25 November 2008

The government bailout of Citigroup marks a new stage in the utilization of the public treasury to rescue Wall Street banks and finance houses.

China’s stimulus package threatens greater economic chaos

By John Chan, 25 November 2008

The Chinese state media announced last Sunday a huge increase in the stimulus package being proposed to reverse the country’s economic slowdown. Provincial governments have drawn up plans that will bring total spending to 10 trillion yuan or $US1.5 trillion, more than twice the original program announced by the central government on November 9.

British court ruling increases risk of home repossession

By Mike Head, 17 November 2008

A British court ruling allowing lenders to seize properties after only two missed mortgage payments has made a mockery of claims by the Brown government to be protecting ordinary people from losing their homes.

Social workers at Detroit “poverty summit” describe impact of layoffs, foreclosures, utility shutoffs

By Tom Eley, 15 November 2008

A "poverty summit" at Detroit's Cobo Center attracted thousands of social workers and representatives of charities from throughout the state of Michigan.

Wall Street’s Great Heist of 2008

1 November 2008

The Wall Street Journal published a front-page article Friday reporting that the nine biggest US banks, which have received a combined $125 billion in taxpayer funds as part of the $700 billion bailout authored by Treasury Secretary Henry Paulson and passed by the Democratic Congress, owed their executives more than $40 billion for recent years’ compensation and pensions as of the end of 2007.

Canada: As economic crisis deepens

Conservatives to press ahead with right-wing tax-cutting agenda

By Keith Jones, 27 October 2008

During their first 31 months in office, the Conservatives implemented massive tax cuts with the double aim of transferring wealth to big business and the most privileged sections of society and hobbling the state’s capacity to fund public and social services.

Britain: Millions threatened with negative home equity and repossession

By Jordan Shilton, 24 October 2008

A report by Standard & Poor’s revealed that 335,000 households in Britain now find themselves in negative equity, meaning that the value of their homes has fallen below the cost of their mortgage.

Housing crisis accelerates blight in Detroit neighborhoods

By Debra Watson and Anne Moore, 21 October 2008

Dire conditions in a once prosperous East Side Detroit neighborhood underscore the impact the wave of home foreclosures is having on working people across the US.

California father, despondent over financial losses, kills family and himself

By Kate Randall, 8 October 2008

According to a new study by the American Psychological Association (APA), close to half of those surveyed say they are increasingly stressed about their ability to provide for their basic needs and those of their family.

In the eye of the storm

New York City workers condemn Wall Street bailout

Bureaucrats back Obama as workers hit bailout

By Sandy English, 6 October 2008

The efforts of the Democrats and Republicans to rescue the financial oligarchy on Wall Street with hundreds of billions of dollars of public money have provoked a wave of revulsion and hostility from workers across the United States. Some of the strongest reactions have been seen in New York City, the home of Wall Street.

The Wall Street bailout and the threat of dictatorship

By Bill Van Auken (Socialist Equality Party vice presidential candidate), 2 October 2008

Recriminations have continued to reverberate internationally over the vote in the US House of Representatives Monday to reject a $700 billion bailout package for the Wall Street banks.

Democrats take charge of pushing through Bush’s bailout of Wall Street

By Barry Grey, 29 September 2008

Democratic congressional leaders held a press conference late Sunday afternoon to announce agreement on a bill to hand over more than $700 billion in taxpayer funds to US banks and finance houses and press for its passage by Wednesday.

Washington Mutual assets acquired by JPMorgan Chase

Biggest US bank failure ever

By Barry Grey, 27 September 2008

Another US banking giant fell Thursday, with the government seizure of Washington Mutual and the purchase of its operations and assets by JPMorgan Chase.

A travesty of democracy

Democrats, Republicans conspire to remove Wall Street bailout from election debate

By Patrick Martin, 27 September 2008

Closed-door talks continued throughout the day Friday between congressional Democratic and Republican leaders and the Bush administration, with all sides pledging to reach agreement on terms of a $700 billion bailout package for the US financial system before the Asian stock markets open Monday morning—Sunday afternoon in the US.

California: foreclosures and homeless on the rise

By Rafael Azul, 27 September 2008

Stagnating wages, increasing unemployment and rising food and fuel prices are driving a wave of foreclosures in California, forcing hundreds of thousands into destitution. The housing crisis has left many working class families homeless or forced to go to food banks to survive day to day.

Letters on the Wall Street bailout

26 September 2008

The following is a selection of recent letters sent to the World Socialist Web Site on the US financial crisis and the Wall Street bailout.

Obama’s embrace of bailout wins favor on Wall Street

By Patrick Martin, 25 September 2008

Democratic presidential candidate Barack Obama has seized upon the financial crisis to increase his support within the US financial elite by giving all-out backing to a federal bailout of Wall Street and providing assurances that an Obama administration will be a reliable and ruthless defender of corporate interests.

Democrats signal support for Wall Street bailout at Senate hearing

By Barry Grey, 24 September 2008

At a hearing Tuesday, Democratic members of the Senate Banking Committee assured Treasury Secretary Henry Paulson and Federal Reserve Board Chairman Ben Bernanke that they would move quickly to pass legislation authorizing the Bush administration to launch a trillion-dollar-plus bailout of Wall Street.

The ties that bind: Dodd, Schumer and Wall Street

By Barry Grey, 24 September 2008

There is nothing mysterious about the abject servility exhibited by the members of the Senate Banking Committee toward Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke at Tuesday’s hearing.

Wall Street falls reflect concerns over bailout and fears for US economy

International tensions

By Peter Symonds, 24 September 2008

US stocks suffered their worst two-day slump in six years this week, amid concerns in financial circles about any obstruction or delay to the Bush administration’s massive $700 billion bailout announced last Friday as well as its adequacy and long-term consequences.

Paulson warns: No limits on CEO pay

By Barry Grey, 23 September 2008

US Treasury Secretary Henry Paulson opposed proposals from some Democrats as well as Republicans that the Bush administration’s plan for a massive taxpayer bailout of the most powerful banks and financial institutions include provisions limiting the pay of CEOs whose companies benefit from the government handout.

Who is Henry Paulson?

By Tom Eley, 23 September 2008

The plan to rescue the US financial industry arrogates virtually unlimited money and power over the financial affairs of the state to the office of Treasury Secretary Henry Paulson.

Banks race to profit from US bailout

By Barry Grey, 23 September 2008

The announcement of a virtually open-ended government bailout of Wall Street has set off a frenzied competition among the biggest banks and financial firms to grab the lion’s share of the super profits to be reaped from the program.

Obama demands deep cutbacks to pay for Wall Street bailout

By Bill Van Auken, 23 September 2008

As the Bush administration and Congress continued negotiations Monday on a trillion-dollar bailout package for Wall Street, Democratic presidential candidate Senator Barack Obama delivered a speech in Green Bay, Wisconsin in which he promised to carry out sweeping cuts in government spending and impose strict fiscal discipline on the US government.

Germany: The international financial crisis and illusions in an enlightened capitalism

Shock and fear

By Peter Schwarz, 22 September 2008

A week following the collapse of the investment bank Lehman Brothers the extent and consequences of the international financial crisis still remain incalculable. Not a single country or continent is exempt from the crisis.

No to Wall Street bailout! The socialist answer to the financial crisis

By Socialist Equality Party National Committee, 22 September 2008

The Socialist Equality Party and its presidential and vice presidential candidates, Jerome White and Bill Van Auken, unequivocally oppose the plan to bail out Wall Street with hundreds of billions of dollars of taxpayer funds announced by the Bush administration and embraced by Democratic presidential candidate Barack Obama and the Democratic congressional leadership.

Lloyds TSB takeover of HBOS leaves Britain’s banks in trouble

By Julie Hyland, 20 September 2008

Lloyds TSB’s £12 billion takeover of Halifax Bank of Scotland (HBOS) Thursday followed a collapse of the UK’s largest mortgage lenders’ shares, which threatened to destablise the entire British banking system.

US government to bail out Wall Street

By Barry Grey, 20 September 2008

The Bush administration on Friday announced plans for a massive and unprecedented federal bailout of the US banking system. In separate appearances Friday morning, Treasury Secretary Henry Paulson and President Bush announced a series of measures to shore up collapsing financial markets and called on Congress to pass legislation next week to use, in Paulson’s words, “hundreds of billions” of taxpayer dollars to buy virtually worthless mortgage-backed assets that cannot be sold on the market from banks and other financial institutions.

Global financial storm hits Australian economy

By Mike Head, 19 September 2008

The deepening financial turmoil in the United States and worldwide is sending tremors through the Australian banking system and share market, and shattering what remains of the claims that the local capitalist economy would be protected by booming exports to China and other Asian markets.

Obama’s response to financial meltdown: Deception and subservience to Wall Street

By Bill Van Auken and SEP vice presidential candidate, 19 September 2008

As hundreds of millions of people in the US and around the world confront the onset of the worst financial crisis since the Great Depression of the 1930s, with all of its implications for their jobs, livelihoods and the future of their children, the Democratic Party and its presidential candidate Barack Obama have seized upon Wall Street’s implosion as a means of reinvigorating their faltering campaign.

Europe gripped by fear of global crash

By Stefan Steinberg, 18 September 2008

Europe’s ruling elite has reacted with shock and disbelief to what they fear will be the most serious crisis for world capitalism since the Wall Street Crash of 1929.

Panic sell-off on Wall Street

By Barry Grey, 18 September 2008

Collapsing confidence in the US and global financial system precipitated a panic sell-off of shares on Wall Street Wednesday, as all of the major indices registered drops in excess of 4 percent.

US Federal Reserve announces $85 billion bailout of insurance giant AIG

By Bill Van Auken, 17 September 2008

Following emergency consultations between the Federal Reserve, the US Treasury and the Democratic leaders of both houses of Congress, the Federal Reserve on Tuesday night announced a bailout of the Wall Street insurance giant American International Group (AIG).

More US corporate bailouts on the way

By Barry Grey, 16 September 2008

The US government, brushing aside its constant invocations of “private enterprise,” has dispensed hundreds of billions of dollars in cheap loans to prop up the banks.

The Wall Street crisis and the failure of American capitalism

By Barry Grey, 16 September 2008

The end of Lehman Brothers and Merrill Lynch, two of the largest Wall Street investment banks, one week after the government takeover of the mortgage finance giants Fannie Mae and Freddie Mac, marks a new stage in the convulsive crisis of American capitalism.