Filed under: Brazil, Russia, Thailand, Citigroup Inc. (C), Mexico, Politics, Housing

With news the embattled mortgage lender Northern Rock is being nationalized by the British government, until it can find a buyer, the question arises whether this is a good move or not?

Analysts at Bear Stearns stated that the government’s move is positive for the sector. The expected managed decline in the Northern Rock balance sheet should create less competitive mortgage market conditions,” said analyst Robert Sage.

Who is this positive for? Certainly not the consumer. Competitive mortgage markets are the best thing that can happen to a consumer. Why should the consumer have to pay higher mortgage rates? Does this analyst think that the government setting mortgage rates is helpful in anyway? Let’s not forget that the banks are responsible for this whole mess. Had they actually been careful in their lending practices, we wouldn’t be in the mess we’re currently in.

Don’t forget that 10 years ago we had a similar banking crisis in Asia, Russia and Latin America, and it was then Treasury Secretary Robert Rubin, who basically created a government bailout for his Wall-Street buddies. Ironic that 10 years later again we need to bail out the banks. Funny that Rubin’s current employer, Citigroup (NYSE: C), is at the center of the current crisis.

Why can’t the banks be held responsible for their lousy investments?

This nationalization of Northern Rock once again will grant banks in the future to mismanage funds knowing full well that the government will come to the rescue. Look out for another banking crisis in 2018.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer has no position in any stock mentioned as of 2/18/08

Share This

Share This

SoyChemist writes “Sociologists at the American Association for the Advancement of Science annual meeting have reported that China is making major investments in nanotechnology. Their aim is to ‘leapfrog’ past the United States in technological development by focusing on long-ranging scientific goals. So far, the Chinese government has poured about $400 million into the young field of research. Considering the low cost of equipment and labor over there, that is a very huge sum of money, and China’s investment is expected to ‘rise considerably.’”

Read more of this story at Slashdot.

Share This

Share This

ScienceDaily is running a story about the recently discovered interaction between Saturn’s A-ring and one of Saturn’s small moons, Enceladus. Thanks to data from Cassini, scientists have discovered that ejected matter from Enceladus’ ice geysers is absorbed into the A-ring, where it is then trapped. We discussed the geysers themselves a few years ago, and researchers have been working since then to determine where the material was going. Quoting: “This is the latest surprising phenomenon associated with the ice geysers of Enceladus to be discovered or confirmed by Cassini scientists. Earlier, the geysers were found to be responsible for the content of the E-ring. Next, the whole magnetic environment of Saturn was found to be weighed down by the material spewing from Enceladus, which becomes plasma — a gas of electrically charged particles. Now, Cassini scientists confirm that the plasma, which creates a donut-shaped cloud around Saturn, is being snatched by Saturn’s A-ring, which acts like a giant sponge where the plasma is absorbed.”

Read more of this story at Slashdot.

Share This

Share This