Signs of the Times

Americans Still Giving Despite Economic Downturn

The Associated Press reports that Americans' generosity doesn't seem tied to how the economy is managing, a new World Vision study conducted by Harris Interactive. On the contrary, some are actually giving back more than previous years. The study found that seven in 10 adults plan to spend less money on holiday presents this year, but about half say they are more likely to give a charitable gift than a traditional present such as clothing or an electronic toy. "At a time when people have things and they know that other people don't, Americans' generosity wins out," said Justin Greeves, senior vice president of Harris Interactive, which regularly polls Americans about their charitable giving. World Vision hopes this perspective will motivate Americans to purchase items such as chickens and bicycles from their holiday gift catalogue to donate to poverty-stricken families worldwide.

APEC Leaders Endorse Ban on Protectionist Measures

LIMA, Peru (AP) — Leaders from 21 nations that account for half the world's economy pledged Saturday not to implement protectionist measures for the next 12 months — no matter how punishing the global downturn gets. At the Asia-Pacific Economic Cooperation forum in Peru, the leaders endorsed a declaration made at last weekend's Group of 20 summit in Washington, which brought together the world's richest economies and major developing nations. They also pledged to reach agreement next month on the outlines of a World Trade Organization pact that collapsed in July after seven years of negotiations. Kazuo Kodama, a Japanese government spokesman, said concern over the global financial crisis revived willingness to push forward on the so-called Doha round of trade talks.

• JJ Commentary: In other words, don’t interfere with the globalization process leading to the one-world government, not matter what.

Worst of Financial Crisis Yet to Come: IMF Chief Economist

ZURICH, Switzerland (AFP) — The International Money Fund's chief economist has warned that the global financial crisis is set to worsen and that the situation will not improve until 2010, a report said Saturday. Olivier Blanchard also warned that the institution does not have the funds to solve every economic problem. He said economic growth would not kick in until 2010 and it will take another year before the global financial situation became normal again. The International Monetary Fund on Friday promised to help Latvia deal with its economic crisis after it assisted Iceland, Hungary, Ukraine, Serbia and Pakistan. The IMF had spent a fifth of its 250 billion dollar (200 billion euro) fund in the last two weeks, Blanchard added.

Feds Shutter Two Thrifts plus Georgia Bank

WASHINGTON — Federal regulators on Friday shut down two big thrifts based in Southern California, saying they fell victim to the acute distress in the housing market in that state. The failures of Downey Savings and Loan Association, based in Newport Beach, and PFF Bank & Trust of Pomona brought the number of U.S. bank failures this year to 22. The Federal Deposit Insurance Corp. was appointed receiver of the two thrifts. U.S. Bank, based in Minneapolis, is acquiring all the deposits and nearly all the assets of both. The combined 213 branches of the two will reopen as branches of U.S. Bank under their normal business hours. Downey, the 23rd-largest U.S. savings and loan, had assets of $12.8 billion and deposits of $9.7 billion as of Sept. 30. PFF, the 38th-largest, had assets of $3.7 billion and $2.4 billion in deposits. Also Friday, Georgia regulators shuttered The Community Bank, a small bank in Loganville, Ga. The FDIC was made receiver of the bank, which had $681 million in assets and $611.4 million in deposits as of Oct. 17.

Government Unveils Plan to Rescue Citigroup

WASHINGTON — Federal regulators late Sunday agreed to backstop about $306 billion of Citicorp's riskiest assets to bolster the staggering banking giant, in yet another in a growing list of radical efforts to shore up confidence in troubled financial markets. Under the agreement announced by the Treasury Department, the FDIC and the Federal Reserve, the government will protect Citi securities backed by residential and commercial real estate. The assets will remain on Citigroup's balance sheet. As a fee for the government protection, Citi will issue $7 billion in preferred stock to the Treasury and FDIC. In addition, the Treasury Department will inject another $20 billion into Citigroup, in exchange for preferred stock, with the money coming from the recently approved $700 billion Troubled Asset Relief Program. The government has previously invested $25 billion into Citigroup under the program. The federal guarantees will be in place for 10 years for residential assets, and five years for the other securities.

Pressure intensified on Citigroup to sell part or all of itself as its stock fell below $4 a share on Friday and fears escalated about future loan losses. What investors are worried about is that all the risky debt sitting on Citigroup's balance sheet will eventually turn into losses as the economy worsens and the markets stay turbulent — losses that could be nearly impossible to reverse. Investors were also fearful that the government might orchestrate a takeover of Citigroup that could wipe out common shareholders. The government was instrumental in JPMorgan Chase's buyout of Bear Stearns and Washington Mutual, deals that left shareholders with little or no payouts.

• JJ Commentary: Please note that these measures continue to give government more direct ownership of banking assets, a further step toward socialism and the New World (Dis)Order.

FDIC Approves Backing for U.S. Bank Debt, Deposits

WASHINGTON (AP) — Federal regulators will guarantee as much as $1.4 trillion in U.S. banks' debt in a bid to get the distressed financial system pumping again. They also took steps Friday to make it easier for private investors to buy failed banks seized by the government. Directors of the Federal Deposit Insurance Corp. voted to approve the bank-debt guarantee program, which is part of the government's financial rescue package. The FDIC program is meant to break the crippling logjam in bank-to-bank lending by guaranteeing the new debt in the event of payment default by the borrowing bank. Some analysts have said that freeing up bank-to-bank lending with the guarantees won't necessarily translate into a thaw in broader lending as banks are still wary of making loans to businesses and consumers.

Obama Outlines Plan to Create 2.5M Jobs

WASHINGTON (AP) — President-elect Barack Obama on Saturday outlined his plan to create 2.5 million jobs in coming years to rebuild roads and bridges and modernize schools while developing alternative energy sources and more efficient cars. These aren't just steps to pull ourselves out of this immediate crisis; these are the long-term investments in our economic future that have been ignored for far too long," Obama said in the weekly Democratic radio address. A trio of crises — housing, credit and financial — have badly damaged the economy, and financial analysts have projected the country's economic hardships will continue through much of 2009. Obama acknowledged Saturday that evidence is growing the country is "facing an economic crisis of historic proportions."

Spasm of 'Hate-Related Incidents' since Election Day

With Barack Obama set to become the nation's first black president, the Chicago Tribune says "a spasm of noose hangings, racist graffiti, vandalism and death threats is convulsing dozens of towns across the country as white extremists lash out at the new political order." The paper relies on anecdotal evidence from activists and law-enforcement agencies who say they have recorded more than 200 "hate-related incidents" since Election Day. In addition to the outcome of the presidential election, the paper says "white supremacist anxieties" are being driven by the nation's changing demographics and the economy's continued decline.

Strong Quake Hits Indonesia Coast

JAKARTA, Indonesia (AP) — The U.S. geological agency says a strong earthquake has struck in the waters off western Indonesia. There were no immediate reports of injuries or damage. The U.S. Geological Survey put Saturday's preliminary magnitude of the quake at 6.8. It says the quake was centered 100 miles southwest of Bengkulu, a city on Sumatra island, and that it was 16 miles beneath the ocean floor. Indonesia is prone to seismic upheaval due to its location on the so-called Pacific "Ring of Fire," an arc of volcanos and fault lines encircling the Pacific Basin. In December 2004, a massive earthquake off Sumatra triggered a tsunami that battered much of the Indian Ocean coastline and killed more than 230,000 people.

Landslides in Southern Brazil kill 20

BRASILIA, Brazil— Flooding and landslides provoked by heavy rains in southern Brazil have killed 20 people and are driving more than 15,000 from their homes. Civil defense officials in Santa Catarina state say floods have cut off access to four towns where residents have no electricity. Rescue efforts are focusing on the Itajai river valley, where waters are 9 meters (30 feet) above normal. The federal government is providing planes to deliver food and medicine to victims.