Former Fed Chief Volcker Says Financial System is Insolvent and Broken 2010 Sep 27
Paul Volcker, former head of the American central bank Federal Reserve,
announced last Thursday at a conference of the Federal Reserve Bank of
Chicago that the US financial system is largely insolvent and "broken".
Volcker indicated that not only the banks are to blame for this situation, but also the federal regulators.
During the last few years, they could have tried a lot harder to stop the investment banks from turning the global markets into a casino.
The investment banks were also responsible for attracting large parts of the former core business of the commercial banks, which consequently led to major problems, as everyone could now see.
Thus, Volcker considered that the credit business generally had taken a negative path. The size of the losses from toxic assets so far hidden by banks would not be assessable anymore. Therefore it would not be hard to imagine that the present situation holds big risks for the future stability of the financial system as well as for the broader economy. He blamed the international central banks of overshooting the mark, when trying to acquire skills that were not part of their original fields of activity. Additionally, a lax monetary policy stirred up the existing problems instead of tackling them.
Volcker added that he was not sufficiently content with the new financial markets bill, since the legislation, known as Dodd-Frank, and the included Volcker rule, was strongly diluted by individual lobbies.
Nowadays it was not the financial regulators, who provided the banks and lenders with rules that generally had to be observed.
In fact, a major part of the market participants resented the financial authorities, since they find the regulations disruptive and bad for business.
He lambasted a lack of respect that led to a refusal to obey the federal rules and to fully execute them.
Volcker described the American mortgage market as "completely broken".
It would take a long time to get the problems of the housing market under control and to reinstall an economic equilibrium.
This situation would weigh on the economic development for a long time, since it causes a big problem for the American consumer and has already led to huge wealth destruction. by Roman Baudzus writes -- Published by GoldMoney
Goldstone Announces Management Change and Appointment of Director
GRC - NEWS - Goldstone Chairman, CEO, Philip Cunningham -
"These are encouraging results on which we will be actively following up between now and he end of the year," said Goldstone Chairman and Interim CEO, Philip Cunningham.
The Key Lake horizon has an approximate strike length of 2.5km.
The initial Phase 1 of drilling was concentrated on about a 1.5km strike length which hosted the former Jelex Mine.
Historic drilling by Cyprus in the mid-90's outlined a 40-50m wide zone of disseminated gold with a higher grade core comprised of a quartz-feldsapr porphyry.
The initial drilling of Goldstone's program was aimed at twinning historical holes and filling in gaps along the corridor at 100m intervals.
The exploration program is managed by Goldstone Resources under supervision of Mike Kilbourne, P.Geo, Vice President of Exploration and the qualified person within NI 43-101 for Goldstone Resources.
Mr. Kilbourne prepared this release and states, "Drill hole KL10-22 is one of the best intersections to date on the Key Lake property and is located 700m west of the old Jelex Mine in an area which has received little attention.
Recent modeling of the entire drill data set will aid us tremendously in our Phase 2 drilling efforts and increase our success rate."
An additional 20 holes for approximately 3500m have been planned and are currently underway.
"In the meantime, we continue to assess results from exploration on our Northern Empire and Leitch-Sand River properties in the Beardmore area."
The COMEX December gold futures contract closed up $10.30 Friday at $1345.30, trading between $1325.60 and $1350.80
The Leitch Gold Mine -
The Leitch Gold Mine - was once Canada's richest.
The Sand River/Leitch complex - produced more than 900,000 ounces of gold.
Like other Goldstone mines - in both Camps, it remains open at depth.
The Leitch Mine (now 100% owned by Goldstone) was one of Ontario’s highest grade and most profitable gold mines, producing 860,648 ounces from 906,395 tons of ore at an average recovered grade of 0.91 oz.Au/ton.
Even more impressively, the average recovered grade over the last ten years of the mine’s operation was 1.15 oz.Au/ton.
GOLDSTONE RESOURCES (TSE:GRC) Gold is coming very soon - - a golden opportunity - :-)
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