CONS MINORITY GOVERNMENT IN CANADA

Harper wins stronger minority government
Updated Wed. Oct. 15 2008 3:04 AM ET Michael Stittle, CTV.ca News

Stephen Harper says Canadians have chartered the way forward for Canada, after strong gains in Ontario gave the Conservatives a larger minority government. No matter what economic challenges we face from abroad, this is a land where people from every corner of the Earth have come together to build a peaceful and prosperous country without comparison, the Conservative leader told cheering supporters in Calgary. Canada will always be the true north, strong and free.He said the Conservatives would continue to ensure Canada is able to weather the global credit crisis, by enforcing firm regulations for banks and promoting business through low taxes. For Canada's $1.5-trillion economy, for the protection of the earnings, savings and future opportunities of our 33 million people, we have a realistic, prudent and responsible plan, he said.Past midnight, the Tories had won or were leading in 143 ridings across the country, out of a possible 308. Harper needed at least 155 seats to form a majority government. As the dust settled in Tuesday's election, the NDP had 37 seats and the Bloc Quebecois 50. The Liberals were headed to a crushing defeat, losing about 18 ridings to fall to 76. In Liberal Leader Stephane Dion's concession speech, he promised to work closely with the Conservatives to tackle any economic troubles. We Liberals will do our part responsibly to make sure this government works, he said in Montreal. It's clear our economy -- indeed, the global economic crisis -- is the most important issue facing our country. As the official opposition, we will work with the government to make sure Canadians are protected from the economic storm.NDP Leader Jack Layton also said he would work closely with Harper, telling supporters in Toronto that the Tories could not govern alone without a majority.

No party has a mandate to implement an agenda without agreement from the other parties, Layton said. I believe the people of Canada have called upon all parties to put aside the acrimony that arises in campaigns, and to come together in the public interest. So we're going to do exactly that.Harper needed to make strong gains in Quebec in order to secure a majority, but made missteps in the final weeks of the campaign by pledging to cut arts funding and crack down on young offenders. The Bloc Quebecois appeared ready to dominate the election results in Quebec once again, while the Tories were leading or had won about 10 seats in the province -- a loss of roughly one riding. Bloc leader Gilles Duceppe boasted of his party's strong performance, noting it was the sixth consecutive majority win in Quebec. I want to salute the work of all the candidates with the Bloc, he told supporters. It was a great campaign.Tory cabinet minister Michael Fortier was defeated in the Montreal-area riding of Vaudreuil-Soulanges, where he was defeated by incumbent Bloc MP Meili Faille. But despite controversy, embattled Conservative candidate Maxime Bernier managed to keep his Quebec riding of Beauce. Bernier was removed from his post as foreign affairs minister earlier this year after he left sensitive government papers at the home of his former girlfriend, Julie Couillard. It's a good feeling, I'm very happy, said Bernier. When asked if he hoped to return to cabinet, Bernier said the prime minister will decide.

Strong gains in Ontario

Ontario was key to a strong Conservative victory, with the province's 106 seats. While Toronto was largely expected to remain a Liberal stronghold, early results suggested the Tories would pick up roughly nine more seats elsewhere in the province. In one major loss for the Liberals, Garth Turner was defeated by Conservative candidate Lisa Raitt in the Ontario riding of Halton. I think the Liberal party, my party, failed to deliver a real, cogent response to the economic crisis, he told CTV News. But despite the Liberal losses, Bob Rae said the opposition parties had deprived Harper of his ultimate goal. I think it's important for people to recognize that Mr. Harper started this campaign looking for a majority. He didn't get it, Rae told CTV News, after winning his riding of Toronto Centre. Regardless of what anyone might want to say, tonight is a defeat for Mr. Harper because he didn't get what he was seeking to get.In one hard-fought Liberal win, former leadership candidate Gerard Kennedy unseated NDP candidate Peggy Nash.

In British Columbia, the Conservatives were set to win 20 seats, including a win by Dona Cadman, the wife of the late Independent MP Chuck Cadman. The Liberals largely held their ground in Atlantic Canada and swept Newfoundland, where Premier Danny Williams waged a fierce campaign against the Conservatives. But the Tories have made gains in New Brunswick. Early results in the region showed the Conservatives completely shut out of Newfoundland and Labrador. One high-profile loss for the party was Fabian Manning. Williams, a Progressive Conservative, has had a long-standing feud with Harper over rights to his province's offshore energy revenues and the latest equalization formula. In the past month he had publicized an Anything But Conservative campaign. But Conservatives had a strong showing in other parts of Atlantic Canada. Peter MacKay staved off a challenge from Green Party Leader Elizabeth May to hang on to his Nova Scotia riding of Central Nova. It's overwhelming, it's exhilarating, he said. All of these emotions come back every time.

May had likened the fight to David and Goliath, after casting her ballot early Tuesday morning. If she had won, it would have made her Canada's first elected Green MP. While no Green Party candidates are headed to Parliament, the party did manage to increase its popular vote to 7 per cent from 5 per cent. In New Brunswick, the Conservatives managed to unseat the Liberals in two ridings: Fredericton and Miramichi. Before Parliament was dissolved on Sept. 7, the Conservatives had 127 seats, the Liberals had 95, the NDP 30 and Bloc 48. The Greens had one seat, but the MP had initially been elected as a Liberal.

Worst voter turnout in history

Only 58 per cent of eligible voters decided to cast their ballots Tuesday, the lowest in the country's history. In 2006, it was 64 per cent. An estimated 1.5 million Canadians cast their ballots in early voting. The election followed a 37-day campaign -- one of the shortest possible under Canadian law. Harper asked Canadians for a stronger mandate to govern the country, after two and a half years of minority rule. He called an election after complaining that Parliament had become increasingly dysfunctional, making it difficult for him to lead the country. It's difficult to see ... how the prime minister comes back to the people of Canada, at the end, of the day and says this election was worth something, former Liberal cabinet minister Brian Tobin told CTV News.

Conservatives headed for minority government Tue. Oct. 14 2008 10:24 PM ET
CTV.ca News Staff

The Conservatives are on track to win another minority government and could make strong gains in Ontario, where the Liberals appear to have lost ground. The Tories had won or were leading in 118 ridings across the country, out of a possible 308, shortly after polls had closed at 10 p.m. ET. The Liberals had 72, the NDP 27 and the Bloc Quebecois 39. Conservative Leader Stephen Harper will need at least 155 seats to form a majority government. But the final weeks of the campaign saw him make missteps in Quebec, where he needed a boost in support. That makes Ontario key to a strong Tory victory, with the province's 106 seats. While Toronto is largely expected to remain a Liberal stronghold, the Conservatives could win new seats in the city's outlaying regions.In one major loss for the Liberals, Garth Turner was defeated by Conservative candidate Lisa Raitt.The Liberals largely held their ground in Atlantic Canada and swept Newfoundland, where Premier Danny Williams waged a fierce campaign against the Conservatives. But the Tories have made gains in New Brunswick. Early results in the region showed the Conservatives completely shut out of Newfoundland and Labrador. One high-profile loss for the party was Fabian Manning. Williams, a Progressive Conservative, has had a long-standing feud with Harper over rights to his province's offshore energy revenues and the latest equalization formula. In the past month he had publicized an Anything But Conservative campaign. But Conservatives had a strong showing in other parts of Atlantic Canada. Peter MacKay staved off a challenge from Green Party Leader Elizabeth May to hang on to his Nova Scotia riding of Central Nova. It's overwhelming, it's exhilarating, he said. All of these emotions come back every time.

May had likened the fight to David and Goliath, after casting her ballot early Tuesday morning. If she had won, it would have made her Canada's first elected Green MP. In New Brunswick, the Conservatives managed to unseat the Liberals in two ridings, Fredericton and Miramichi. Before Parliament was dissolved on Sept. 7, the Conservatives had 127 seats of a possible 308. They held 41 ridings in Ontario, 11 in Quebec and 28 in Alberta -- every single seat in the province. The Liberals had most of their seats in Ontario, where they held 51 of a possible 106 ridings. They were tied with the Tories in Quebec with 11 seats. Layton's New Democrats had 12 seats in Ontario and 10 in British Columbia, where the party is traditionally seen as a strong opposition party to the Conservatives, rather than the Liberals. At dissolution the Bloc had 48 seats in Quebec out of a total 75. It's unclear whether voter turnout has improved on previous years. An estimated 1.5 million Canadians cast their ballots in early voting.

2008 ELECTION RESULTS 40TH ELECTION RESULTS

CON LIB NDP BLO IND GRE OTH TOT PROV
000 006 001 000 000 000 000 007 NFL
001 003 000 000 000 000 000 004 PEI
003 005 002 000 001 000 000 011 NOS
006 003 001 000 000 000 000 010 NEB
010 013 001 050 001 000 000 075 QUE
051 038 017 000 000 000 000 106 ONT
009 001 004 000 000 000 000 014 MAN
013 001 000 000 000 000 000 014 SAS
027 000 001 000 000 000 000 028 ALB
022 005 009 000 000 000 000 036 BRC
001 000 000 000 000 000 000 001 NUF
000 000 001 000 000 000 000 001 NWT
000 001 000 000 000 000 000 001 YUK

143 076 037 050 002 000 000 308 TOT 2008 10:55 AM.
124 103 029 051 000 000 001 308 TOT 2006

2006 ELECTION RESULTS 39TH ELECTION RESULTS

CON LIB NDP BLO IND GRE OTH TOT PROV
003 004 000 000 000 000 000 007 NFL
000 004 000 000 000 000 000 004 PEI
003 006 002 000 000 000 000 011 NOS
003 006 001 000 000 000 000 010 NEB
010 013 000 051 000 000 001 075 QUE
040 054 012 000 000 000 000 106 ONT
008 003 003 000 000 000 000 014 MAN
012 002 000 000 000 000 000 014 SAS
028 000 000 000 000 000 000 028 ALB
017 009 010 000 000 000 000 036 BRC
000 001 000 000 000 000 000 001 NUF
000 000 001 000 000 000 000 001 NWT
000 001 000 000 000 000 000 001 YUK

124 103 029 051 000 000 001 308 TOT

CNN NEWS VIDEO
http://edition.cnn.com/video/

YAHOO NEWS VIDEO
http://news.yahoo.com/video

MIDEAST CONFLICT NEWS
http://news.yahoo.com/video/1874;_ylt=A0wNcxFdg6xIgbkAwD6z174F

ABC NEWS VIDEO
http://news.yahoo.com/video/2461

FOX NEWS VIDEO
http://news.yahoo.com/video/3074

FOX BUSINESS VIDEO
http://news.yahoo.com/video/3045

AP NEWS VIDEO
http://news.yahoo.com/video/2529

BBC NEWS VIDEO
http://news.yahoo.com/video/2918

REUTERS VIDEO NEWS
http://news.yahoo.com/video/2704

AFP NEWS VIDEO
http://news.yahoo.com/video/3091

CNBC NEWS VIDEO
http://news.yahoo.com/video/3245

HOARDING OF GOLD AND SILVER

DOCTOR DOCTORIAN FROM ANGEL OF GOD
then the angel said, Financial crisis will come to Asia. I will shake the world.

JAMES 5:1-3
1 Go to now, ye rich men, weep and howl for your miseries that shall come upon you.
2 Your riches are corrupted, and your garments are motheaten.
3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.

REVELATION 18:10,17,19
10 Standing afar off for the fear of her torment, saying, Alas, alas that great city Babylon, that mighty city! for in one hour is thy judgment come.
17 For in one hour so great riches is come to nought. And every shipmaster, and all the company in ships, and sailors, and as many as trade by sea, stood afar off,
19 And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.

EZEKIEL 7:19
19 They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity.

REVELATION 13:16-18
16 And he(FALSE POPE) causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:(CHIP IMPLANT)
17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
18 Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.(6-6-6) A NUMBER SYSTEM

WORLD MARKET RESULTS
http://money.cnn.com/data/world_markets/

HALF HOUR DOW RESULTS WED OCT 15,2008

09:30 AM -87.45
10:00 AM -202.44
10:30 AM -290.79
11:00 AM -365.98
11:30 AM -358.81
12:00 PM -328.07
12:30 PM -383.50
01:00 PM -291.91
01:30 PM -433.13
02:00 PM -511.03
02:30 PM -491.35
03:00 PM -492.86
03:30 PM -498.65
04:00 PM -733.08 8577.91

S&P 500 907.84 -90.17

NAS 1628.33 -150.68

GOLD 851.0 +11.5

OIL 73.95 -4.68

TSE 300 -662.80 9,292.86

CDNX -63.49 991.21

S&P/TSX 60 -43.30 559.35

Dow down 7% today.
S&P down 9% today.
NAS down8 8% today.
Dow has 20TH of last 23 triple digit sessions.

VOLITILITY CONTINUES

BAD NEWS
-Continuing concerns,Govt. efforts will not be effective.
-Huge T-bill auctions at lower yields.
-Weaker economic Data.
-Poor retail sales.

GOOD NEWS
-Libor rates lower.
-Tidal wave of liquidity coming.

WHATS UP WITH ENERGY?
1-When oil prices go down,energy stocks underperform.
2-Leverage factor going away.
3-Speculators exit the Market.
4-Demand fears on Global recession.

EU TO CALL FOR GLOBAL SUMMIT TO REFORM BRETTON WOODS FINANCIAL SYSTEM.

THE BAILOUT PLAN

-Invest $250 BILLION in Banks.
-$125 BILLION will go to 9 major Banks.
-Guarentee new Bank debt for 3 years. Debt issued now to June 2009.
-FDIC to insure ovove 250 non-interest bearing accounts.

PLAN DETAILS

-preferred dividend of 5% for first five years.
-Dividend rises to 9% after 5 years.
-Government will take warrants equal to 15% of preferred investment.
-Dividends can still be paid,no share buybacks for 3 years.

Brown calls for new Bretton Woods By eNews 2.0 Staff
16:18, October 15th 2008

British Prime Minister Gordon Brown on Wednesday joined French President Nicolas Sarkozy in calling for a new Bretton Woods to better regulate global financial markets and avoid future credit crunches. We urgently need what you might call the new Bretton Woods, so that we can restore confidence in the system while dealing with the areas that have been exposed in recent weeks, Brown said before the start of a European Union summit in Brussels. Brown's proposals included placing the world's top 30 companies - among them some of the biggest financial institutions - under international supervision, and the creation of an early warning system designed to prevent future financial crises from spreading. The premier also called for a global summit to discuss the new Bretton Woods, as well as improved transparency and coordination. Instead of having national supervisors, we need a global way of supervising our financial system, Brown said. Sarkozy was the first European leader to call for a new Bretton Wood, named after a 1944 conference that established rules for commercial and financial relations among the world's major industrial states. We want to build the beginning of a new financial world as they did in Bretton Woods, Sarkozy said at an October 4 meeting in Paris attended by Brown, German Chancellor Angela Merkel and Italian Prime Minister Silvio Berlusconi.

Since then, the British premier has lead European efforts to tackle the global financial crisis. And at their two-day summit in Brussels, EU leaders were set to rubber-stamp a 2-trillion-euro (2.7-trillion- dollars) financial rescue plan inspired by Britain. Approved on Sunday by eurozone leaders in Paris, the plan includes measures to guarantee interbank lending and to partly nationalize shaky financial insitutions by providing them with liquidity in exchange for shares. The European Council reaffirms its determination to act in a comprehensive and coordinated manner to restore the good functioning of the financial system, leaders were set to announce, according to a draft statement seen by Deutsche Presse-Agentur dpa. But while there is a shared awareness that common action is essential, some member states have expressed concerns that such measures could create unfair advantages to some institutions. I will clearly want the European Commission's assurances that the planned steps are not a case of disallowed public aid, said Czech Prime Minister Mirek Topolanek ahead of his departure for Brussels. Speaking on Tuesday, European Commission President Jose Manuel Barroso appealed to governments to put their divisions aside and sign up to the eurozone's plan. Even after this crisis, there are some governments that are opposing a more coordinated European approach, Barroso said.

To try and go it alone in this climate would be a fatal mistake for any government anywhere in Europe, he said. In Paris, eurozone leaders also agreed to set up a financial crisis management unit tasked with sharing out sensitive financial information among the eurozone's key players and to come up with a rapid, common response. The unit would comprise governments, the EU presidency, the heads of the European Central Bank and of the European Commission, and the chairman of the eurogroup, Luxembourg's Jean-Claude Juncker. While in Brussels, EU leaders were set to underline the need to strengthen the supervision of the European financial sector, especially with regards to banks and insurance companies operating in several member states. And with the rescue plan likely to dig deeply into member states' public accounts, EU leaders were set to agree on the need to relax the bloc's strict budgetary rules. The application of the revised Stability Pact should reflect the exceptional circumstances that we are facing, as its rules allow, the meeting's draft conclusions state. Officials in Brussels say this means that budget deficits would be allowed to exceed by several decimal points the standard 3-per cent-of-gross domestic product (GDP) limit. Finally, EU leaders were set to call for a curb on managers' salaries and on the need to work with their international partners on a real and comprehensive reform of the international financial system.

Such a system should be based on the principles of transparency, banking soundness, responsibility, integrity and global governance.European calls for a new Bretton Woods would likely be discussed by Sarkozy, Barroso and George W Bush at a meeting scheduled to take place on Saturday in the US president's mountain retreat of Camp David.

Gordon Brown is calling for global talks this year to reform the world's financial system to avoid any re-run of the worst credit crisis since the 1930s Great Depression.2:32PM BST 15 Oct 2008

Gordon Brown - the British Prime Minister arrives for meeting of the European Socialists Party prior to an EU summit in Brussels on Wednesday Photo: AP The British Prime minister said a global summit could be held in the next few months despite lack of agreement among international leaders that they need to hold a summit on the financial crisis EU leaders are in Brussels for two days of talks about the financial crisis, ties with Russia and climate change. The summit comes in a week in which European governments launched a coordinated £1,700bn rescue of banks. Both Mr Brown and French President Nicolas Sarkozy has argued that the current turmoil has shown the world's post-Second World War financial architecture is not fit to task. There is said to be support for this view, although others are advocating new rules on everything from hedge funds to executive pay. Mr Brown said: If we are going to sort out global financial problems that are recognised to be global, we need better ways of doing this.He is also calling for global talks this year to reform the world's financial system. Mr Brown said a global summit could be held in the next few months despite lack of agreement among international leaders that they need to hold a summit on the financial crisis After talks with European Commission President Jose Manuel Barroso earlier today, Mr Brown said: The IMF has got to be rebuilt as fit for purpose of modern world. We need an early warning system for the global economy.He has long called for the Washington-based IMF to monitor global markets to prevent crises. European Central Bank President Jean-Claude Trichet, who said in New York yesterday that officials reshaping the world's financial system should try to return to the discipline that governed markets in the decades after Second World War.

Perhaps what we need is to go back to the first Bretton Woods, to go back to discipline, Mr Trichet said after giving a speech at the Economic Club of New York. It's absolutely clear that financial markets need discipline: macroeconomic discipline, monetary discipline, market discipline.Mr Trichet said: If we don't have discipline, then we are putting into question the functioning of the market economies and the functioning of our financial markets.He indicated that recent market turmoil was partly a consequence of the deregulation that occurred after Bretton Woods' demise. That was triggered in 1971, when inflation forced the US to abandon the dollar's peg to gold, an anchor of the system, heralding the era of floating exchange rates. The explosion of the first Bretton Woods in a way could be interpreted as a rejection of discipline, said Mr Trichet. On Monday, Mr Brown said the world needs a new Bretton Woods agreement to make the architecture of the global financial system fit for purpose in the 21st century. In 1944 the Bretton Woods conference helped draw up the post-war world financial order and created the International Monetary Fund and World Bank. Mr Brown said we must devise new rules for a world of global capital flows just as the founders of Bretton Woods devised rules for a world of limited capital flows.

WTO chief backs call for new Bretton Woods meetingReuters, Tuesday October 14 2008 By Jonathan Lynn

GENEVA, Oct 14 (Reuters) - The head of the World Trade Organisation (WTO), Pascal Lamy, has backed a call by British Prime Minister Gordon Brown for a new Bretton Woods meeting to redesign the world financial system.If a new Bretton Woods means re-looking at the governance of the world economy, I'm fine with that, Lamy told reporters.And I know where an effort has to be made and this effort has to be made in finance, he said late on Monday.Lamy was referring to the landmark meeting in the United States towards the end of World War Two that drew up the plans for a global economic system designed to avoid a repeat of the disasters that led to the 1930s Great Depression.Earlier on Monday Brown called for a new Bretton Woods agreement to make the architecture of the global financial system fit for purpose in the 21st century.Lamy, an ascetic Frenchman who says one of his hobbies is thinking about global governance, said the problems of designing a new system should not be under-estimated.

It's formidably complex. Trade is simplistic as compared to prudential regulations, rating agencies and the rest, he said.A major question is who would regulate the system -- the International Monetary Fund, Bank for International Settlements or some other body.How can you build a system of international governance in global finance with central banks who are independent from government? Lamy asked.Who will sign? Will it be a treaty? What sort of commitment? Who will monitor all this? -- plenty of ideas for the agenda! With links to French Socialist politicians such as former Prime Minister Pierre Mauroy and former Finance Minister and EU Commission President Jacques Delors, Lamy has spent his time at the WTO pushing to open up world trade.But he draws a distinction between market opening and deregulation.
For instance a country can open its market to foreign providers of financial services, but set its own regulatory standards as long as they do not discriminate against foreigners, he argues.Similarly a country may import food or toys from abroad while maintaining its own safety standards.Opening your market and regulating it are two different things, the former EU trade commissioner said.Over 700 delegates from 44 allied nations met in Bretton Woods, New Hampshire, in the United States in July 1944 to design the postwar economic system.The meeting gave birth to the International Monetary Fund and World Bank, as well as leading to the creation of the WTO's predecessor.(Editing by Mark Trevelyan)

Europe stuns with €1.5 trillion bank rescue, as France plays role of saviour
Germany, France, Italy, Spain, Holland and Austria have joined forces to launch the greatest bank bail-out in history, offering over €1.5 trillion in guarantees and fresh capital in a shock and awe blitz to halt the credit panic. By Ambrose Evans-Pritchard 10:22AM BST 14 Oct 2008

The move – unveiled simultaneously in the six states to maximise the show of unity – throws the full weight of the eurozone behind global efforts to stem the crisis. The move gave a tremendous boost to bourses across Europe, lifting the Euro Stoxx index by 9.53pc in the biggest one-day rally ever. The pan-European plan – totalling over $2 trillion, or £1.17 trillion – completes the third leg of a dramatic restructuring of finance across the Western world. Sovereign states have now absorbed the brunt of the credit risk in half the global economy. The greatest risk is inertia, said French President Nicolas Sarkozy, now basking in glory as the man who refused to give up after the first emergency summit of EU leaders ended in discord. The French state will not let a single bank fail. We have to unblock the interbank market because money has stopped circulating, but it is a reasonable bet that by offering this guarantee, it won't actually be needed, he said, unveiling a French package worth €320bn in guarantees for fresh interbank loans and a €40bn bank rescue fund.

Sarkozy has emerged as the statesman of the hour, shaping events as others dithered. He appears to have understood intuitively that credit paralysis would set off a dangerous downward spiral. Germany's rescue package totals €500bn, far bigger in per capita terms than America's scheme. The bulk is to guarantee interbank lending, while €100bn is for a stabilisation fund to recapitalise banks and cover losses – with strict pay limits for executives. We have placed the first foundation stone of a new financial order, said chancellor Angela Merkel, underlining that nothing would ever be the same again in banking. She also warned that the US government's massive support for the Detroit car industry would create a major headache for Germany's producers, who are already struggling. BMW said yesterday that it would idle plants in Leipzig, Regensburg and Munich as demand fell. Italy's finance minister Giulio Tremonti said Rome would provide as much money as necessary to stabilise credit markets. Italy's plan includes the injection of up to €40bn in fresh capital into the banks on a case by case basis, through preference shares. The Netherlands is offering a €200bn guarantee; Austria is putting up €100bn, as is Spain – as a preventive measure. Debts issued before the end of next year will be guaranteed for five years under all the national plans. Diplomats say the world owes a great deal to France's finance minister, Christine Lagarde. A former chair of the US law firm Baker McKenzie and a friend of US Treasury Secretary Hank Paulson, she has been a bridge between the EU and Washington, helping to end the transatlantic sniping that has damaged market confidence over the past year. The close co-operation is in stark contrast to the catastrophic rift in October 1931, when France set off a wave of US bank defaults by pulling its gold out of New York.

The Sarkozy accord was not enough to shield Société Générale yesterday, as reports circulated that it might be the first to tap into the French bank rescue fund, perhaps needing as much as €10bn. The share price collapsed 17pc at one point on fears of losses in its structured credit unit. Investors are concerned that it may suffer from exposure to Eastern Europe, where it has played a role in providing foreign currency mortgages. The shares ended down 2pc in Paris. This week's dramatic action by the eurozone states has gone a long way to reassure investors that EMU can weather a severe crisis, even though it lacks an EU treasury or fully fledged lender-of-last resort. The EU Stability Pact rules on budget deficits have been shunted aside by invoking the special circumstances clause of the Maastricht treaty, opening the way for fiscal stimulus. The Dutch-Belgian rescue of Fortis and the French-Belgian rescue of Dexia were not without friction, but at the end of the day the system was able to come up with creative solutions. IMF chair Dominique Strauss-Kahn said the monetary union had faced its ordeal by fire this week. With French leadership, it survived.

Bailout becomes buy-in as feds move into banking By JEANNINE AVERSA, AP Economics Writer OCT 14,08

WASHINGTON - Big banks started falling in line Tuesday behind a rejiggered bailout plan that will have the government forking over as much as $250 billion in exchange for partial ownership — putting the world's bastion of capitalism and free markets squarely in the banking business. Some early signs were hopeful for the latest in a flurry of radical efforts to save the nation's financial system: Credit was a bit easier to come by. And stocks were down but not alarmingly so after Monday's stratospheric leap.The new plan, President Bush declared, is not intended to take over the free market but to preserve it.It's all about cash and confidence and convincing banks to lend money more freely again. Those are all critical ingredients to getting financial markets to function more normally and reviving the economy.

The big question: Will it work?

There was a mix of hope and skepticism on that front. Unprecedented steps recently taken — including hefty interest rate reductions by the Federal Reserve and other major central banks in a coordinated assault just last week — have failed to break through the credit clog and the panicky mind-set gripping investors on Wall Street and around the globe.The Dow Jones industrials declined 77 points on Tuesday after piling up their biggest point gain ever on Monday on news of Europe's rescue plan and in anticipation of the United States' new measures.Initially the U.S. government will pour $125 billion into nine major banks with the hope that they will use the money to rebuild their reserves and to increase lending to consumers and businesses. Another $125 billion will be made available this year to other banks — if they need it — for cash infusions.In return, the government will get ownership stakes in the financial institutions. Banks, meanwhile, will have to accept limitations on executives' compensation.Government owning a stake in any private U.S. company is objectionable to most Americans — me included, Treasury Secretary Henry Paulson said in announcing the initiative. Yet the alternative of leaving businesses and consumers without access to financing is totally unacceptable.Whether the $250 billion will be sufficient to encourage banks to lend again is hard to tell, said Anil Kashyap, professor of economics and finance at the University of Chicago's Graduate School of Business. The Treasury Department arrived at the $250 billion figure after consulting with banking regulators.This plan will work if we wind up with everybody pretty well capitalized, Kashyap said. But if it doesn't reach that point, we'll be back in soup down the road.The government is counting on banks not to just clutch onto the cash, which aggravated the credit crisis to begin with.The needs of our economy require that our financial institutions not take this new capital to hoard it, but to deploy it, Paulson said.

Treasury switched gears deciding to first use a chunk of the $700 billion from the recently enacted financial bailout package to pay for taking partial ownership stakes in banks, rather than using the money to buy rotten debts from financial institutions. The government said it still intends to buy the bad mortgages and other toxic assets, another move aimed at getting credit flowing again.Besides the $250 billion this year on the stock purchases, Bush said Tuesday that an additional $100 billion would be needed in connection with covering bad assets. That would leave $350 billion of the $700 billion program, presumably to be spent by the next president.Economists as well as both Democratic and Republican lawmakers on Capitol Hill had urged Treasury to first move forward on the capital injection plan, arguing that was a more effective way to battle the financial crisis.The first bank to take advantage of the program was Bank of New York Mellon which announced it would sell $3 billion in preferred shares to the Treasury. Other banks initially participating include Goldman Sachs Group Inc., Morgan Stanley, JPMorgan Chase, Bank of America Corp., including the soon-to-acquired Merrill Lynch, Citigroup Inc., Wells Fargo & Co., and State Street Corp. The government's cash infusions are attractive to banks because they are having trouble getting money from elsewhere. Skittish investors have cut them off, moving their money into safer Treasury securities. Financial institutions are hoarding whatever cash they have rather than lending it to each other or customers. Two other initiative also were unveiled to stem the credit crisis: The Federal Deposit Insurance Corp. launched an insurance fund to temporarily guarantee new issues of bank debt — fully protecting the money even if the institution fails. And, the FDIC will start providing unlimited deposit insurance for non-interest bearing accounts, which are mainly used by businesses to cover payrolls and other expenses. Frequently these accounts exceed the current $250,000 insurance limit, so the expanded insurance should discourage nervous companies from pulling their money out. Both of these efforts would be financed by fees charged to participating financial institutions — not money from the bailout package. Even if the new plan works, economists caution that it could take years before locked up lending returns to normal. The difference between the rate at which banks lend to other banks and the rate at which they buy U.S. government debt has narrowed, but remains near a 25-year high — a glaring sign that there's still fear in the market. But there was a hopeful glimmer elsewhere: A crucial short-term, bank-to-bank lending rate called the London Interbank Offered Rate, or Libor, inched down Tuesday. That rate is important because a lot of commercial loans and many adjustable-rate mortgages are tied to it. Some of the banks had to be pressured to participate by Paulson, who wanted healthy institutions to go first as a way of removing any stigma that might be associated with banks getting bailouts. Paulson met privately with bank executives on Monday. The government's shares will carry a 5 percent annual dividend that will increase to 9 percent after five years. That increase in the rate is aimed at providing an incentive for companies to buy the government out. The advantage to the taxpayer is that if the rescue plan works, then the shares can be sold for more than the government initially paid, providing a profit on the transaction. The move, in effect a partial nationalization of the banking system, does put the United States in the awkward position of owning shares in institutions it also regulates. The shares purchased by the government will be nonvoting. They also give the government a priority in getting paid back if a company fails. So far this year, 15 banks have failed, compared with three for all of 2007. The government's role will be limited and temporary, Bush pledged. These measures are not intended to take over the free market but to preserve it.At a news conference last month, Bush defended his administration's increasingly aggressive market interventions to deal with the worst financial crisis in more than a half-century. I'm sure there are some of my friends out there saying, I thought this guy was a market guy; what happened to him? Well, my first instinct wasn't to lay out a huge government plan. My first instinct was to let the market work until I realized, upon being briefed by the experts, of how significant this problem became, Bush said then. The Federal Reserve, meanwhile, announced that it will begin buying vast amounts of short-term debt on Oct. 27 — its latest effort to break through a credit clog. The Fed is invoking Depression-era emergency powers to buy commercial paper — a crucial short-term funding that many companies rely on to pay their workers and buy supplies. Last week the Fed said it intended to take the action but didn't specify when. The economy's problems also are taking their toll on the government's coffers. The 2008 budget deficit hit an all-time high of $454.8 billion. The red ink probably will be a lot worse next year as the costs of the government's rescue of the financial system and the economic hard times clobber the federal balance sheet, economists predict. Associated Press writer Martin Crutsinger contributed to this report.

Ukraine, other small nations face crisis alone By MARIA DANILOVA, Associated Press Writer OCT 14,08

KIEV, Ukraine - While the world's economic giants may have averted financial collapse through rescue plans and huge infusions of cash, some smaller countries like Ukraine seem to have stumbled with little help on the horizon. Among the most vulnerable states, it seems, are some of the young democracies born after the fall of the Soviet empire, which have seen their economies race ahead under democratic rule and capitalism — only to run smack into a global financial crisis.Facing bank failures, turbulent markets and rapid inflation, Ukraine's politically fractured government imposed a series of emergency measures this week to shore up the economy.

At a news conference Tuesday, Prime Minister Yulia Tymoshenko dodged the question of whether Ukraine was seeking help from the International Monetary Fund, which would confirm fears about the state of Ukraine's economy. Instead, she offered broad assurances that there was no need for panic.The Ukrainian government is doing everything possible and impossible so that the impact of the global crisis on Ukrainian life, the Ukrainian economy is minimized, Tymoshenko said.While the world's major economies snap up banks and bail out brokers, many modest-sized countries don't have such deep pockets.Hungary's currency has skidded 20 percent. Stocks have fallen in Poland. In Estonia, real estate prices have dropped 40 percent.

Iceland, where stocks fell almost 70 percent Tuesday before rebounding, is trying to negotiate a $5.5 billion loan from Russia.Ukraine, which has been locked in a political struggle with Moscow since it elected a pro-Western government in 2004, certainly can't go begging to the Kremlin.Ukraine's inflation rate hit 31 percent in May compared with the same month the previous year, higher than any other country except Zimbabwe and Venezuela. The government scrambled and brought it down to a somewhat less shocking 16 percent rate as of September.Faced with global economic uncertainty, depositors in Ukraine began frantically converting their local currency into dollars after the hryvna (pronounced HRIV-nyah') dipped by almost 20 percent, before clawing back some lost ground.Analysts said the fall was due to investors pulling money out of Ukraine and many other emerging markets. The rate plunge stripped the banking system of $1.3 billion in the first two weeks of October.Some analysts say that the so-called emerging markets of the world's vibrant young capitalist economies will bounce back quickly, because many are still shaking off the effects of decades of totalitarian rule.Even so, many seem destined to ride an economic roller coaster in the short term, as real estate bubbles burst, banks go bust and consumer spending tanks.Anders Aslund, an economic analyst, wrote in July that Ukraine's economic plight was not as bad as that of Russia in 1998, which plunged the country into a deep, prolonged recession.Ukraine's state budget, he pointed out, had a healthy surplus, its public foreign debt was small and its national bank was flush with foreign currency reserves worth $36 billion.But he still saw Ukraine facing catastrophic consequences if it failed to get inflation under control — and predicted that real estate prices could fall by half, while half of all banks might go bankrupt.The country's two leading magazines came out with nearly identical covers this week — Korrespondent showing a one-hryvna bank note going up in flames, and Focus displaying a one-hryvna coin melting down. Money is melting, warned Focus. Hello crisis, Korrespondent announced. Tymoshenko announced Tuesday that the government was freezing transportation costs, lowering natural gas prices and planning to cap electricity costs for the steel and chemical industries, an effort to boost the core sectors of the national economy. The government's measures follow a central bank freeze of selected retail accounts across the country, limits on loans and other measures to stabilize the currency. It looks like the National Bank is in control of the situation, said Volodymyr Dinul, an analyst with Renaissance Capital. Let us hope that everything will calm down sooner rather than later.

One key to the financial problems in Ukraine, experts say, is a falling demand for steel, the country's key export commodity. Another factor is Ukrainians' mistrust of banks, founded on their painful experience with the hyperinflation following the 1991collapse of the Soviet Union, which wiped out their savings. Tymoshenko's government sought to compensate some of the losses from that long-ago crisis this year, but that proposal was stalled by her political feud with President Viktor Yushchenko.

One of the triggers for the current crisis was the trouble at two major banks, the sixth-largest Prominvest, which has been taken over by the central bank, and the seventh-largest Nadra, which has survived thanks to a $300 million central bank loan. Fitch Ratings, a global credit rating agency, on Monday downgraded Nadra and noted that Ukrainian banks faced challenging times as near-term risks increased considerably. Ukraine's main stock index, PFTS, closed with a minuscule 0.8 percent gain Tuesday, following the positive global trend and reacting to the government efforts. The stock market has lost nearly 70 percent since the beginning of this year, after a record 130 percent rise in 2007. Independent financial analyst Geoff Smith said an aid package adopted by the G-7 leaders bodes well for Ukrainian banks, since European banks had stakes in nearly half of local banks. After the G-7 rescue plan, I am cautiously optimistic the Ukrainian banking system will in general withstand the crisis, said Smith. Others remained concerned, saying the central bank's drastic measures showed the banking sector was in deep trouble. The crisis has been aggravated by Ukraine's political deadlock, and the current crisis over control of parliament. That crisis deepened Tuesday, after Tymoshenko refused to heed Yushchenko's order and release government money to pay for early parliamentary elections he called for Dec. 7. Tymoshenko, seen as Yushchenko's rival in the 2010 presidential vote, is battling to retain her office and avoid a third parliamentary ballot in three years. Yushchenko is determined to push through with the election and has abolished a court that froze election preparations. Associated Press writers William J. Kole in Vienna, Olga Bondaruk in Kiev and Catrina Stewart in Moscow contributed to this story.

FIRES AND EXPLOSIONS

REVELATION 8:7
7 The first angel sounded, and there followed hail and fire mingled with blood, and they were cast upon the earth: and the third part of trees was burnt up, and all green grass was burnt up.

Firefighters attack stubborn blaze near LA homes By THOMAS WATKINS, Associated Press Writer OCT 14,08

LOS ANGELES - Flames whirled dangerously close to homes Tuesday as gusty Santa Ana winds sent the biggest of southern California's wildfires flaring in hilly brushlands on Los Angeles' northern edge. Firefighters with hoses guarded houses as helicopters unleashed loads of water on hot spots of the 9,872-acre blaze charring slopes above the San Fernando Valley communities of Porter Ranch and Granada Hills.

The fire is one of three major blazes that have burned more than 27 square miles of Southern California, destroyed dozens of homes and forced thousands of people to evacuate their homes this week. One man died in the flames, and a motorist was killed in a crash as a fire neared a freeway.Despite the fire's activity, there were no reports of new structural losses in the Porter Ranch area. Nineteen buildings including some homes were destroyed there on Monday.Ten miles away, there was major progress against Los Angeles' other big wildfire. The 4,800-acre Marek fire in the northeastern San Fernando Valley was 70 percent contained and some evacuees were allowed to go home.But people who lived in an area where 38 mobile homes were destroyed were not permitted to return.Teresa Escamilla, 47, lay on a cot in a Red Cross shelter, thinking the worst. She believed she lost everything including a shoebox containing five years of savings.It feels like it's not real, the nursing assistant said in Spanish. It's a nightmare.Mayor Antonio Villaraigosa acknowledged the uncertainty facing residents of the fire areas.Many still don't know when they are going to return home, he told a news conference. Our hearts and prayers are out with all of them.On the north coast of San Diego County, a 3,000-acre fire at the Marine Corps' Camp Pendleton was 25 percent contained. Evacuation orders were largely lifted for about 2,000 Marine Corps personnel and family members in military housing and residents of about 1,500 homes in neighboring Oceanside. A separate small fire closed Interstate 5 through the base for two hours Tuesday before it was controlled.The outbreak of fires followed the weekend arrival of the first significant Santa Ana winds of the fall.The National Weather Service said the intensity of the winds was diminishing but warned there would still be strong gusts. Warnings for critical fire weather conditions were to remain in effect until Wednesday night.The Santa Anas usually sweep in between October and February as cold, dry air descending over the Great Basin flows toward Southern California and squeezes through mountain passes and canyons. The extremely low humidity levels, which make vegetation easier to burn, and high windspeeds combine to whip fires into infernos.Associated Press writers Shaya Tayefe Mohajer, Solvej Schou, Robert Jablon in Los Angeles and Chelsea J. Carter in San Diego contributed to this report.

WORLD TERRORISM

GENESIS 6:11-13
11 The earth also was corrupt before God, and the earth was filled with violence.
12 And God looked upon the earth, and, behold, it was corrupt; for all flesh had corrupted his way upon the earth.
13 And God said unto Noah, The end of all flesh is come before me; for the earth is filled with violence through them; and, behold, I will destroy them with the earth.

2 PETER 2:5
5 And spared not the old world, but saved Noah the eighth person, a preacher of righteousness, bringing in the flood upon the world of the ungodly;

2 PETER 3:7
7 But the heavens and the earth, which are now, by the same word are kept in store, reserved unto fire against the day of judgment and perdition of ungodly men

LEVITICUS 26:16
16 I also will do this unto you; I will even appoint over you( sudden) terror, consumption, and the burning ague, that shall consume the eyes, and cause sorrow of heart: and ye shall sow your seed in vain, for your enemies shall eat it.

GENESIS 16:11-12
11 And the angel of the LORD said unto her, Behold, thou art with child, and shalt bear a son, and shalt call his name Ishmael; because the LORD hath heard thy affliction.
12 And he will be a wild man; his hand will be against every man, and every man's hand against him; and he shall dwell in the presence of all his brethren.

ISAIAH 33:1,18-19 Woe to thee that spoilest,(destroys) and thou wast not spoiled;(destroyed) and dealest treacherously, and they dealt not treacherously with thee! when thou shalt cease to spoil,(destroy) thou shalt be spoiled;(destroyed) and when thou shalt make an end to deal treacherously, they shall deal treacherously with thee.
18 Thine heart shall meditate terror. Where is the scribe? where is the receiver? where is he that counted the towers?
19 Thou shalt not see a fierce people, a people of a deeper speech than thou canst perceive; of a stammering tongue, that thou canst not understand.

JOHN 16:2
2 They shall put you out of the synagogues: yea, the time cometh, that whosoever killeth you will think that he doeth God service.

British government minister warns of terror threat By MEERA SELVA, Associated Press Writer OCT 14,08

LONDON - The threat of another major terrorist attack is building in Britain, a government security minister said Tuesday, a day after the House of Lords rejected a measure that would have extended the amount of time police can hold terror suspects without charge. Alan West, a counterterrorism minister and member of the House of Lords, said the threat is rising after having dipped slightly.Another great plot is building up again that we are monitoring, he said during a debate on the government's anti-terror legislation, without providing further details.The Home Office, which oversees policing and security in Britain, refused to elaborate on West's comments.There are many plots, individuals and groups under investigation. We don't elaborate on specific plots or individuals, the Home Office said in a statement.On Monday, the House of Lords rejected a controversial government plan to extend the amount of time police can hold terror suspects without charge from 28 to 42 days.The government's effort to strengthen counterterrorism provisions gathered pace after suicide bombers killed 52 rush-hour commuters in London in July 2005.

Opposition lawmakers branded West's comments reckless.

Chris Huhne, home affairs spokesman for the Liberal Democrats, said West's comments risked blowing the cover of a police counter-terrorist investigation.Jonathan Evans, head of the security services, said in a speech last year that 2,000 individuals in Britain were considered a direct threat to national security because of their support for terrorism and warned that there could be thousands more the authorities did not know about.The current threat level in Britain is assessed as severe — the second highest of five possible ratings.

US, Russia send high-level teams to Georgia talks By ALEXANDER G. HIGGINS, Associated Press Writer OCT 14,08

GENEVA - The United States and Russia have assigned high-level delegations to European Union-sponsored talks aimed at promoting security in Georgia under the cease-fire that ended this summer's brief war in the former Soviet republic, officials said Tuesday. Assistant Secretary of State Daniel Fried will head a three-member delegation at the one-day talks in Geneva on Wednesday, said Dick Wilbur, spokesman for the American mission to U.N. organizations in Geneva.Russian Deputy Foreign Minister Grigory Karasin arrived Tuesday, said an official of the Russian mission, who spoke on condition of anonymity because he wasn't an authorized press spokesman.The talks are aimed at following up on the cease-fire mediated by French President Nicolas Sarkozy that ended the Russian-Georgian war in August.Originally the talks were expected to bring ministers to Geneva for substantive discussions, but diplomats said it was downgraded to expert level because of differences over the participation of representatives from breakaway regions of Abkhazia and South Ossetia.The U.S. and Russian delegations, however, are considerably higher than expert level.The talks will cover security and stability arrangements in Abkhazia and South Ossetia in keeping with the cease-fire, Wilbur said. The talks will address compliance with the cease-fire, security issues, the return of internally displaced persons and human rights.European diplomats said the talks will start a process of dialogue rather than aim at a specific conclusion or statement.The five-day war erupted Aug. 7 when Georgian forces launched an attack seeking to regain control of South Ossetia. Russian troops repelled the offensive and then drove deep into other parts of Georgia. Soon after the fighting ended, Russia recognized South Ossetia and Abkhazia as independent states.Associated Press writers Edith M. Lederer at the United Nations and Eliane Engeler and Frank Jordans in Geneva contributed to this report.