Weekly News Wrap-Up 5.25.12
By Greg Hunter’s USAWatchdog.com
The big meeting, this week, in Iraq concerning Iran’s nuclear program was a big bust. The meeting, once again, ended the same way the last one did—with a date for another meeting. The next one is in Russia, next month, and will involve all the same world powers (U.S. UK, France, Germany, Russia, China and Iran).
The West wants Iran to stop enriching uranium to high levels for fear of turning it into a nuclear weapon. Iran has repeatedly said its program is for the peaceful production of energy. Israel has called the ongoing meetings a stalling tactic and is not ruling out military action, even though it has agreed to allow international inspectors. Greece is inching closer to a Euro exit. If it leaves the European Union, will Spain and Italy be next? Will the Fed and European Central Bank be forced to print money, again, to stop another calamity? Some say the problem will be “contained,” but isn’t that what was said about the sub-prime mortgages in 2007? That proved not to be contained as the market has cut home prices in half in some markets in the U.S.
JP Morgan’s derivative trading loss is reportedly more than 3 times bigger than the original $2 billion first disclosed by Jamie Dimon. Former Bank regulator and professor of law and economics, William Black, calls the ongoing mess and JP Morgan a “devastating threat to our economy and our democracy down the road.” Facebook’s IPO was a flop and some say a huge rip-off. Morgan Stanley, who was brokering the deal to the public, is being sued for allegedly not disclosing negative information about the company before the IPO.
Morgan Stanley and Facebook say the lawsuits are meritless. Small investors lost an estimated $600 million, and the stock has lost about $30 billion in market cap. Romney and Obama are running close in the polls for president. Remember, Ron Paul, the only Republican to bring young voters out in droves, could be wooed by Romney. Paul, also, might run on a third party ticket, although he has said his plan is to change the direction of the Republican Party. I’ll bet there are still lots of surprises in store in this election year. Greg Hunter gives his analysis on these stories and more in the Weekly News Wrap-up.