The DOW and NASDAQ were clobbered again today in higher volume and the markets look to be entering a downtrend at a minimum. What was the catalyst for such a move? Take your pick among many market driven and geopolitical events.
Among the market analysts whose opinions I take under advisement is Karl Denninger over at The Market Ticker. While investors have been fixated on the collapse of gold and silver, this morning, Denniger astutely pointed out a complete break of support by copper.
WAKE UP!
In my capacity as a collateral risk real estate appraisal analyst, I vividly recall most of the vacant homes I appraised were minus the outside A/C unit, as thieves found the copper within most valuable. In fact, in some cases, all the copper in the improvements was ripped out and stolen.
But the price of copper has collapsed, signaling, as Denninger points out, "because it's a measure of industrial demand -- that is, industrial production on a global basis."
Denninger is correct to point out that Europe, more specifically the EU, is living on borrowed time. First, Greece came to light as essentially bankrupt, and the bailouts began in earnest. They would only provide a temporary respite, with the wheels of collapse spinning a wider web as the days go by.
Additional bailouts have taken place in effort to prevent total insolvency, but they won't work.
Recently in Cyprus, the situation was so bleak that the government resorted to the unthinkable; theft of portions of the monetary holdings of its citizens. Although a stunning development, the sad truth is that the action will not fix the issue.
What will be the next move of the elitist technocrats, or criminals; and is anybody awake to call the thieves out?
Nigel Farage is, and delivered yet another verbal tongue lashing today at a European Parliament meeting, well worth a listen:
Farage, and Denninger for that matter, has been on this issue for several years, but sadly, few are listening. Although the bailouts will continue without long term success, eventually, the bubble will burst and the EU will blow up.
Alarmingly, America will not be immune from the destruction, for much of the same market distortion, bailouts, data propaganda, crony capitalism, fraud and deceit we have seen overseas is taking place here.
Don't think these things can't happen here in America? A Cyprus style theft of deposits has already taken place here in the United States, an action which has completely unpunished, with the malfeasance over at MF Global. Under CEO Jon Corzine, the former New Jersey Democrat governor and an individual Obama and Biden seek out for financial advice, the company went bankrupt evaporating all the firms cattle rancher deposits along the way.
At a minimum, it should be noted the US economy is in very poor shape, the EU is insolvent and destined for failure, China is an untrustworthy economic enigma and your government is masking the truth in astonishing levels of propaganda, most notably associated with unemployment.
These are not the ingredients of healthy market, and not conditions worthy of your investment, unless you are a very serious professional with rocks in your stomach. For me, I'll be golfing when the collapse happens unable to get out, a chance I am not prepared to take given all the uncertainty.
Everyone is essentially insolvent and simply playing a shell game. Bernanke has our printing presses in high speed pursuit in effort to stay ahead of the oncoming bubble burst, creating an a series of positions most difficult to painlessly unwind.
I am not sure where to hide, as a government starving for solvency will leave no stone unturned in their quest to acquire cash. As we have sadly witnessed, theft is now an option.
Showing posts with label MF Global. Show all posts
Showing posts with label MF Global. Show all posts
Wednesday, April 17, 2013
Wednesday, March 20, 2013
Dangerous People Indeed
Are you familiar with Nigel Farage?
Farage, flying against strong headwinds, has been a very vocal leader in opposition to the European Union as freedoms of the citizenry diminish due to incompetence of central planner and bankers.
Become acquainted with him in the following video of approximately three years ago as he lambastes in stunning fashion the EU Parliament for their incredible arrogance.
Farage absolutely nailed it in his address, calling out the technocrat elites who seek control over the masses and, as Farage appropriately put, are very dangerous people indeed. That was three years ago.
It won't, and has not, worked, as evidenced by the continuous bailouts of bankrupt countries which make up the EU, often referred to as the PIIGS.
Movement along bailout boulevard led to event this past weekend which should send shivers down the spine of not only investors in foreign markets and currencies, but the average citizens right here across the fruited plain.
The government of Cyprus, absolutely bankrupt and seeking contingency operations, attempted to make a move which many thought may be the catalyst to European collapse; the application of an mandatory tax on the countries bank depositors of a minimum of approximately 7%.
In many areas, such as the US government and our mainstream media, you were informed there was nothing of relevance to found by further investigating the tentacles of the story. Nothing to see here, move along.
However, after the story blew up on social media Saturday, many alternative media outlets flexed their muscle and alerted the world to the evil ripple effect of the proposed action.
At Market Ticker, the move is labeled "direct confiscation". Zero Hedge offered top notch analysis of The Rape of Cyprus. At Monty Pelerin's World, Cyprus and The Risk of Bank Runs is examined. Over at The Burning Platform, the question is asked if theft of this nature already happening here?
Investors Business Daily notes a new low in arbitrary power grabs, and even leftist columnists are worried. Kevin Freeman over at Global Economic Warfare has a great piece, noting government surveillance of our financial accounts.
Don't think for a moment if cannot happen here. In fact, violations in the rule of law took place immediately into the Obama administration when contract law regarding the positions of bondholders was violated in the auto bailouts. In my mind, they continued with the 3.8% investment tax we found in the Obamacare legislation when we got around to reading it. One can argue the artificial intervention in interest rate levels is stealing investment returns from those, particularly the elderly, who hold investments in seeking returns in interest.
Then there was the sordid affair of malfeasance and theft over at MF Global, where Jon Corzine, former Democrat Governor of New Jersey and Goldman Sachs president, allegedly used funds in customer accounts to arbitrage on European currencies and lost big, causing MF to go bankrupt. As of today, the depositors have not been made hole and Corzine is chasing skirts in the Hamptons.
Russia Today caught up with Farage for commentary on Cyprus and where we the EU stands on the boulevard to bankruptcy. Go:
The EU is destined for collapse, and as Farage noted back three years ago, we should all hope the market collapses before the citizens are robbed to pay off, as Freeman put it, the excessive debts of profligate governments.
Once the lynch pin is pulled, these governments, run by elites who lack respect for the rule of law, will stop at nothing to preserve their power. This includes theft and robbing the citizenry of their freedom and independence, collective action in many a regard.
Time is precious for the United State to avoid similar economic issues given the immoral spending by our government. However, we elected the wrong guy if fixing these issues was on the agenda. They are not, and truthfully, the actions of this administration point to nudging the masses to assist in crashing the system in the vision of Cloward and Piven.
With cheap money seeking the highest level of return, the stock market is artificially pumped significantly above standard levels of relative strength and at some point soon, the casino of choice will crash to the level where buyers and sellers are in legitimate competition finding an equilibrium point influenced in future movement by speculation.
Should a catastrophic event occur in the capital markets, the action of the confiscation of funds has already been established. The United States would not be exempt from such action under similar duress. Gold was confiscated under FDR, and the Obama administration has been investigating how they can gain access to the 401K accounts of the citizens.
In the aftermath of an event, action will be embarked upon by government "for the good of the people", which translate to your loss of freedom and assets for the preservation of power of the progressive elites and ruling class.
Shore up your investments promptly, avoiding Shore Bank, before you wake up one morning and find portions of them confiscated, prompting a global bank run. That will conclude the greatest heist in history.
Farage, flying against strong headwinds, has been a very vocal leader in opposition to the European Union as freedoms of the citizenry diminish due to incompetence of central planner and bankers.
Become acquainted with him in the following video of approximately three years ago as he lambastes in stunning fashion the EU Parliament for their incredible arrogance.
Farage absolutely nailed it in his address, calling out the technocrat elites who seek control over the masses and, as Farage appropriately put, are very dangerous people indeed. That was three years ago.
It won't, and has not, worked, as evidenced by the continuous bailouts of bankrupt countries which make up the EU, often referred to as the PIIGS.
Movement along bailout boulevard led to event this past weekend which should send shivers down the spine of not only investors in foreign markets and currencies, but the average citizens right here across the fruited plain.
The government of Cyprus, absolutely bankrupt and seeking contingency operations, attempted to make a move which many thought may be the catalyst to European collapse; the application of an mandatory tax on the countries bank depositors of a minimum of approximately 7%.
In many areas, such as the US government and our mainstream media, you were informed there was nothing of relevance to found by further investigating the tentacles of the story. Nothing to see here, move along.
However, after the story blew up on social media Saturday, many alternative media outlets flexed their muscle and alerted the world to the evil ripple effect of the proposed action.
At Market Ticker, the move is labeled "direct confiscation". Zero Hedge offered top notch analysis of The Rape of Cyprus. At Monty Pelerin's World, Cyprus and The Risk of Bank Runs is examined. Over at The Burning Platform, the question is asked if theft of this nature already happening here?
Investors Business Daily notes a new low in arbitrary power grabs, and even leftist columnists are worried. Kevin Freeman over at Global Economic Warfare has a great piece, noting government surveillance of our financial accounts.
Don't think for a moment if cannot happen here. In fact, violations in the rule of law took place immediately into the Obama administration when contract law regarding the positions of bondholders was violated in the auto bailouts. In my mind, they continued with the 3.8% investment tax we found in the Obamacare legislation when we got around to reading it. One can argue the artificial intervention in interest rate levels is stealing investment returns from those, particularly the elderly, who hold investments in seeking returns in interest.
Then there was the sordid affair of malfeasance and theft over at MF Global, where Jon Corzine, former Democrat Governor of New Jersey and Goldman Sachs president, allegedly used funds in customer accounts to arbitrage on European currencies and lost big, causing MF to go bankrupt. As of today, the depositors have not been made hole and Corzine is chasing skirts in the Hamptons.
Russia Today caught up with Farage for commentary on Cyprus and where we the EU stands on the boulevard to bankruptcy. Go:
The EU is destined for collapse, and as Farage noted back three years ago, we should all hope the market collapses before the citizens are robbed to pay off, as Freeman put it, the excessive debts of profligate governments.
Once the lynch pin is pulled, these governments, run by elites who lack respect for the rule of law, will stop at nothing to preserve their power. This includes theft and robbing the citizenry of their freedom and independence, collective action in many a regard.
Time is precious for the United State to avoid similar economic issues given the immoral spending by our government. However, we elected the wrong guy if fixing these issues was on the agenda. They are not, and truthfully, the actions of this administration point to nudging the masses to assist in crashing the system in the vision of Cloward and Piven.
With cheap money seeking the highest level of return, the stock market is artificially pumped significantly above standard levels of relative strength and at some point soon, the casino of choice will crash to the level where buyers and sellers are in legitimate competition finding an equilibrium point influenced in future movement by speculation.
Should a catastrophic event occur in the capital markets, the action of the confiscation of funds has already been established. The United States would not be exempt from such action under similar duress. Gold was confiscated under FDR, and the Obama administration has been investigating how they can gain access to the 401K accounts of the citizens.
In the aftermath of an event, action will be embarked upon by government "for the good of the people", which translate to your loss of freedom and assets for the preservation of power of the progressive elites and ruling class.
Shore up your investments promptly, avoiding Shore Bank, before you wake up one morning and find portions of them confiscated, prompting a global bank run. That will conclude the greatest heist in history.
Tuesday, January 29, 2013
Tacking Tangible
The market indexes have been on quite some run.
If I could get a handle on all the lines of action going on on Wall Street, not only would I be a ventriloquist, I would be beyond wealthy. I am not.
The FED has increased the money supply by engaging in monetizing the debt, otherwise considered printing money, and that has resulted in excess money chasing too few assets, pushing the asset prices higher.
Due to the abysmal housing market, which cannot gain ground due to a horrendous job market and extensive regulation through Dodd-Frank, real estate investing has not been the avenue of choice for investors. Gold and the stock market has.
A review of the NASDAQ after the close today shows the index increasing five year highs, and this has been a great run if you have been along for the ride. Take a look, but note the market level variance from the relative strength:
While markets are forward looking and do not always reflect the current status of the economic realities on the ground, given our economy, it is reasonable to conclude the stock market should not be lurching into a parabolic assault on historical highs. With an employment participation rate having retracted to levels not seen since the Reagan administration, a manipulated unemployment rate parked at levels not witnessed since The Great Depression, governmental assaults on small business, class warfare on the wealthy and putrid growth in the Gross Domestic Product, one has to wonder why the dichotomy between the capital markets and the reality on the ground.
As the excellent blog Zero Hedge accurately pointed out, many economic measures are breaking down, and while the Case Schiller Housing Index has shown signs of life depending on how you analyze the data, even though a shadow inventory remains, the housing market remains bottoming.
If housing is improving, with the state of the economy, one must conclude rising investor participation as first time home buyers are scarce. If investors are becoming more interested in real estate, what market has fallen into disfavor and why? The stock market?
Indications are yes.
In fact, as BloombergBusinessweek reported, some $114 billion US Bank deposits have been withdrawn, at the fastest pace since the September 11, 2001 attacks.
Apparently, few know why.
Paul Miller, a bank analyst with FBR Capital Markets, cautions against reading too much into the Fed’s weekly data. “It’s a noisy database,” he says. No kidding. With a media complicit in propaganda, and the FED intervening in market action in unprecedented levels, it is most difficult to accurately value equities. It is the FED behind the curtain who is crowding banks out of the mortgage origination market and setting unreasonable credit requirements for lending practice, handicapping the housing market even with manipulated easy money.
But is there a correlation between rising housing investment and what looks to be a topping out of the DOW and NASDAQ? Further, in anticipation of a market collapse, would tangible assets such as real estate become the favored investment?
Without government interaction, even though they have been replenishing their balance sheets borrowing free money from the Fed, banks could not withstand a major economic collapse. Further, unwinding the hypothecation would be catastrophic. If the clients of Jon Corzoine at MF Global are any indication, get your money while you can. Maybe investors are.
No matter what market developments lay in store for us, a few things are certain in my view. The housing market remains broken and cannot recover without a recovering job market. The market has been compromised and true evaluation is not possible. And, unfortunately and most notably, the rule of law and trust of the marketplace, integral for the survival of a free market capitalist system, has been violated.
As I have previously mentioned, until the rule of law is reestablished with the government becoming a bystander, allowing the FED to resume normal open market operations, the market place will remain compromised and a playground for the crony crowd.
Given the increasing turbulence, while I don't know what I am having for lunch tomorrow, I sense a major storm brewing both port and starboard. Caveat Emptor.
If I could get a handle on all the lines of action going on on Wall Street, not only would I be a ventriloquist, I would be beyond wealthy. I am not.
The FED has increased the money supply by engaging in monetizing the debt, otherwise considered printing money, and that has resulted in excess money chasing too few assets, pushing the asset prices higher.
Due to the abysmal housing market, which cannot gain ground due to a horrendous job market and extensive regulation through Dodd-Frank, real estate investing has not been the avenue of choice for investors. Gold and the stock market has.
A review of the NASDAQ after the close today shows the index increasing five year highs, and this has been a great run if you have been along for the ride. Take a look, but note the market level variance from the relative strength:
 |
| Weekly NASDAQ chart/Investors.com |
As the excellent blog Zero Hedge accurately pointed out, many economic measures are breaking down, and while the Case Schiller Housing Index has shown signs of life depending on how you analyze the data, even though a shadow inventory remains, the housing market remains bottoming.
If housing is improving, with the state of the economy, one must conclude rising investor participation as first time home buyers are scarce. If investors are becoming more interested in real estate, what market has fallen into disfavor and why? The stock market?
Indications are yes.
In fact, as BloombergBusinessweek reported, some $114 billion US Bank deposits have been withdrawn, at the fastest pace since the September 11, 2001 attacks.
Apparently, few know why.
Paul Miller, a bank analyst with FBR Capital Markets, cautions against reading too much into the Fed’s weekly data. “It’s a noisy database,” he says. No kidding. With a media complicit in propaganda, and the FED intervening in market action in unprecedented levels, it is most difficult to accurately value equities. It is the FED behind the curtain who is crowding banks out of the mortgage origination market and setting unreasonable credit requirements for lending practice, handicapping the housing market even with manipulated easy money.
But is there a correlation between rising housing investment and what looks to be a topping out of the DOW and NASDAQ? Further, in anticipation of a market collapse, would tangible assets such as real estate become the favored investment?
Without government interaction, even though they have been replenishing their balance sheets borrowing free money from the Fed, banks could not withstand a major economic collapse. Further, unwinding the hypothecation would be catastrophic. If the clients of Jon Corzoine at MF Global are any indication, get your money while you can. Maybe investors are.
No matter what market developments lay in store for us, a few things are certain in my view. The housing market remains broken and cannot recover without a recovering job market. The market has been compromised and true evaluation is not possible. And, unfortunately and most notably, the rule of law and trust of the marketplace, integral for the survival of a free market capitalist system, has been violated.
As I have previously mentioned, until the rule of law is reestablished with the government becoming a bystander, allowing the FED to resume normal open market operations, the market place will remain compromised and a playground for the crony crowd.
Given the increasing turbulence, while I don't know what I am having for lunch tomorrow, I sense a major storm brewing both port and starboard. Caveat Emptor.
Monday, September 10, 2012
Pushing A String
Unfortunately, we have an extremely serious economic problem that is a massive ball and chain on the ankle of American commerce. In addition, President Obama not only knows this and is not informing you, but he is complicit in orchestrating it.
The markets are currently rigged, with the politicians in charge, most notably President Obama and Massachusetts Senatorial candidate Elizabeth Warren and advocate for the creation of Consumer Financial Protection Bureau, running at the mouth about how we need further market regulation.
Of course, under Obama's crony capitalism, we are not enforcing current laws when it comes to the financial markets and are allowing thieves to abscond with billions. See former New Jersey Governor, and Democratic bundler for Obama, Jon Corzine, of MF Global.
Although they say they are not, the FED is monetizing the debt, punishing savers. Banks are flush in cash, and are not lending. They sense something bad coming, and do not want risk extended in the upcoming environment.
Doug Dachille of First Principles Capital Management joins Joe Kernan on CNBC's Squawk Box to discuss QE3, the mortgage market and price distortion. Take a listen:
The FED should raise rates immediately and effort to strengthen the dollar, and quit pushing a string of failing central planning programs. As Reagan said, government is not the solution to the problem; government is the problem.
With a Romney victory, the FED will promptly effort to pull back the extension of capital within the market, puncturing the propped up market averages. At this point, real value will be learned, improper market manipulation by The FED should cease with Bernake being fired and risk can be measured adequately.
We might have DOW 8000, but it will be real and we will have a solid basis to operate from. This will be much better than the crony capitalism and market manipulation we are currently dealing with.
The markets are currently rigged, with the politicians in charge, most notably President Obama and Massachusetts Senatorial candidate Elizabeth Warren and advocate for the creation of Consumer Financial Protection Bureau, running at the mouth about how we need further market regulation.
Of course, under Obama's crony capitalism, we are not enforcing current laws when it comes to the financial markets and are allowing thieves to abscond with billions. See former New Jersey Governor, and Democratic bundler for Obama, Jon Corzine, of MF Global.
Although they say they are not, the FED is monetizing the debt, punishing savers. Banks are flush in cash, and are not lending. They sense something bad coming, and do not want risk extended in the upcoming environment.
Doug Dachille of First Principles Capital Management joins Joe Kernan on CNBC's Squawk Box to discuss QE3, the mortgage market and price distortion. Take a listen:
The FED should raise rates immediately and effort to strengthen the dollar, and quit pushing a string of failing central planning programs. As Reagan said, government is not the solution to the problem; government is the problem.
With a Romney victory, the FED will promptly effort to pull back the extension of capital within the market, puncturing the propped up market averages. At this point, real value will be learned, improper market manipulation by The FED should cease with Bernake being fired and risk can be measured adequately.
We might have DOW 8000, but it will be real and we will have a solid basis to operate from. This will be much better than the crony capitalism and market manipulation we are currently dealing with.
Monday, August 20, 2012
In Plain Sight
The Gaffmaster, Vice President Joe Biden, is really struggling for friction out on the campaign trail. Recently, his rhetoric has been so far off the mark, Sarah Palin thought he might should be replaced on the ticket with Hillary Clinton and Rudy Giuliani thought he might not have the mental capacity to be President God forbid he should have to.
These recent gaffes even have the American Crossroads PAC out with a fresh new ad, which not withstanding the comedy, identifies a very sad situation.
There is no question Joe Biden is not among the critical thinkers of our day, surely is not well read and seems to lack intellectual curiosity, which may be a result of being a lifelong politician. But is Biden really this idiotic, or is he using distractionary moves complicit in an often utilized Obama administration tool of creating distractions in an effort to conceal the real goings on?
Take a close listen to Biden during his "chains' remark, which set off a major firestorm:
Did you catch what I did? No, it is not that he is talking about the help needed from the crowd in Virginia to help win North Carolina.
Biden described a potential Romney administration would unchain Wall Street, allowing them to write their own rules. One could suggest that this is simply another in a long line of the misrepresentation of the facts, but for team Obama, but that would be masking the truth. After all, it is Obama and the Democrats that are ignoring the rule of law and allowing banks to engage in theft without fear of prosecution.
On the same day Biden was seemingly wrestling with reality, a report surfaced that in aftermath of financial fallout over the bankruptcy of MF Global, formal charges against CEO Jon Corzine and other MF Global executives are not expected. Corzine, the former Governor of New Jersey, Goldman Sachs CEO and high ranking Democrat bungler with strong ties to the Obama administration, is alleged to have commingled account funds with house funds and lost it all betting on European arbitrage. In other words, he engaged in theft of customer money.
Ann Barnhardt, a former independent introducing brokerage company who shut down her cattle futures business after she deemed integrity in the futures market was lost, has long predicted Corzine would walk away scott free. She was right.
If an enforceable rule of law is not present in our capital markets, which have a major moral component, at the brokerage level, then at some point, perhaps during a crisis, no dollar is safe. It is bad enough that folks in high places like Corzine get away with this type of theft, but to have the administration, who through the likes of Solyndra and numerous examples of crony capitalism has rewarded friends and supporters with tax dollars, run off at the mouth about how it is the Republicans that allow white collar law breakers to escape the grip of the rule of law is farcical and shameful.
While the mainstream media appropriately hammers Biden on his "chains" remark,insensitive at best to our fellow black Americans, nobody seems to have caught the Obama-Biden team in a situation in which they are not simply misrepresenting the truth, but lying to your face about a enforcing the rule of law in an arena that is the center of the financial crisis our country has been languishing in.
Obviously, the Obama administration actions does not match their rhetoric, and the horrendous results that they now fully own are nothing short of abysmal. With nothing to run on or with, you might think they could at least acknowledge some level of truth, but no such luck.
Their lies are right out in front for all of the electorate to see; in plain sight.
There is no question Joe Biden is not among the critical thinkers of our day, surely is not well read and seems to lack intellectual curiosity, which may be a result of being a lifelong politician. But is Biden really this idiotic, or is he using distractionary moves complicit in an often utilized Obama administration tool of creating distractions in an effort to conceal the real goings on?
Take a close listen to Biden during his "chains' remark, which set off a major firestorm:
Did you catch what I did? No, it is not that he is talking about the help needed from the crowd in Virginia to help win North Carolina.
Biden described a potential Romney administration would unchain Wall Street, allowing them to write their own rules. One could suggest that this is simply another in a long line of the misrepresentation of the facts, but for team Obama, but that would be masking the truth. After all, it is Obama and the Democrats that are ignoring the rule of law and allowing banks to engage in theft without fear of prosecution.
On the same day Biden was seemingly wrestling with reality, a report surfaced that in aftermath of financial fallout over the bankruptcy of MF Global, formal charges against CEO Jon Corzine and other MF Global executives are not expected. Corzine, the former Governor of New Jersey, Goldman Sachs CEO and high ranking Democrat bungler with strong ties to the Obama administration, is alleged to have commingled account funds with house funds and lost it all betting on European arbitrage. In other words, he engaged in theft of customer money.
Ann Barnhardt, a former independent introducing brokerage company who shut down her cattle futures business after she deemed integrity in the futures market was lost, has long predicted Corzine would walk away scott free. She was right.
If an enforceable rule of law is not present in our capital markets, which have a major moral component, at the brokerage level, then at some point, perhaps during a crisis, no dollar is safe. It is bad enough that folks in high places like Corzine get away with this type of theft, but to have the administration, who through the likes of Solyndra and numerous examples of crony capitalism has rewarded friends and supporters with tax dollars, run off at the mouth about how it is the Republicans that allow white collar law breakers to escape the grip of the rule of law is farcical and shameful.
While the mainstream media appropriately hammers Biden on his "chains" remark,insensitive at best to our fellow black Americans, nobody seems to have caught the Obama-Biden team in a situation in which they are not simply misrepresenting the truth, but lying to your face about a enforcing the rule of law in an arena that is the center of the financial crisis our country has been languishing in.
Obviously, the Obama administration actions does not match their rhetoric, and the horrendous results that they now fully own are nothing short of abysmal. With nothing to run on or with, you might think they could at least acknowledge some level of truth, but no such luck.
Their lies are right out in front for all of the electorate to see; in plain sight.
Monday, July 16, 2012
Market Mayhem
Investors should be treading very carefully these days in the capital markets. This is not a time for Aunt Mary and Uncle Bob and unemployed day traders.
Former FED Chair Alan Greenspan said today that the market may be juiced some 50% due to FED stimulus. While the effectiveness of the stimulus can be argued, the FED cannot operate quantitative easing forever, and at some point, the stimulus will need to be retracted.
Forecasting the extraction of FED injected stimulus is one task, but navigating a market without integrity and rule of law signals a retreat to the sideline. Regrettably, in my estimation, we sadly have reached this point. MF Global is fresh on our minds, and last I saw, Jon Corzine was two fisted with his favorite cocktail cranking around the Hamptons. Meanwhile, his investors remain fighting to retrieve small portions of the investments placed with his frim feared lost.
The events surrounding the MF debacle should have been a major warning sign. In the aftermath, Ann Barnhardt shut down her brokerage firm Barnhardt Capital Management due to lack of confidence in the governance of the cattle futures market. Barnhardt warned of future issues to come, and this week we were greeted with the bizarre goings on at PFG Best. Score one for Ann.
Rick Santelli of CNBC further explains:
It seems clear we have issues at the CFTC and/or NFA, and all capital markets, for that matter. The FED seems to be in bed with the Obama administration, rather than operating with impartial market driven guidance. We have news the LIBOR rate has been manipulated, with Barclays among the first of potentially many banks to be signaled out. JP Morgan, with problems turning up everywhere these days, reportedly played a role. LIBORgate will become a major financial mess, potentially blowing up every HP12C on the planet as the lawsuits get going. As it turns out, approximately 1 million mortgages were based off this rate, and that could be a huge problem.
We ran a blog post a few months back discussing market mayhem, eloquently described First Principles Capital Managements Doug Dachille, which we will present again below.
These market manipulations are quite complex difficult to get your arms around. However, when you couple the imminent implosion of the European Union with market manipulation and The FED gaming the system it becomes exponentially difficult to properly measure risk. In addition, the rewards of potential gains versus the risk exposure within tainted and manipulated markets seem not worth the effort. Although seemingly safe in large big caps positions, investors should keep a very tight leash on any investments.
Do you know who is running the casino? Are their friends being rewarded at your expense? Corruption is everywhere! There is market mayhem, being controlled by those who are not ashamed to be helping you lose your money. Trust and rule of law are absent. It is most unfortunate it has come to this, but in my view it clearly has.
Caveat Emptor!
Forecasting the extraction of FED injected stimulus is one task, but navigating a market without integrity and rule of law signals a retreat to the sideline. Regrettably, in my estimation, we sadly have reached this point. MF Global is fresh on our minds, and last I saw, Jon Corzine was two fisted with his favorite cocktail cranking around the Hamptons. Meanwhile, his investors remain fighting to retrieve small portions of the investments placed with his frim feared lost.
The events surrounding the MF debacle should have been a major warning sign. In the aftermath, Ann Barnhardt shut down her brokerage firm Barnhardt Capital Management due to lack of confidence in the governance of the cattle futures market. Barnhardt warned of future issues to come, and this week we were greeted with the bizarre goings on at PFG Best. Score one for Ann.
Rick Santelli of CNBC further explains:
It seems clear we have issues at the CFTC and/or NFA, and all capital markets, for that matter. The FED seems to be in bed with the Obama administration, rather than operating with impartial market driven guidance. We have news the LIBOR rate has been manipulated, with Barclays among the first of potentially many banks to be signaled out. JP Morgan, with problems turning up everywhere these days, reportedly played a role. LIBORgate will become a major financial mess, potentially blowing up every HP12C on the planet as the lawsuits get going. As it turns out, approximately 1 million mortgages were based off this rate, and that could be a huge problem.
We ran a blog post a few months back discussing market mayhem, eloquently described First Principles Capital Managements Doug Dachille, which we will present again below.
These market manipulations are quite complex difficult to get your arms around. However, when you couple the imminent implosion of the European Union with market manipulation and The FED gaming the system it becomes exponentially difficult to properly measure risk. In addition, the rewards of potential gains versus the risk exposure within tainted and manipulated markets seem not worth the effort. Although seemingly safe in large big caps positions, investors should keep a very tight leash on any investments.
Do you know who is running the casino? Are their friends being rewarded at your expense? Corruption is everywhere! There is market mayhem, being controlled by those who are not ashamed to be helping you lose your money. Trust and rule of law are absent. It is most unfortunate it has come to this, but in my view it clearly has.
Caveat Emptor!
Thursday, April 5, 2012
Constitutional Destruction
A few years back, fearful of what many knew but so few could see, Jon McNaughton began a assemblage of a striking and magnificent painting, which constructs the picture in summation of how this country has gotten to a point where transformation from our founding principles could take place. Please see the following video:
In recent weeks, seemingly in desperation although his arrogance would suggest otherwise, President Obama has attacked anybody and everybody, save the Muslim Brotherhood. Obama attacked the Catholic Church, oil companies and has verbally assaulted many of the precious pillars of our government. With the media complicit in his back pocket, Obama has hammered Congress in slamming Rep. Ryan (R:WI) and his efforts at avoiding a catastrophic debt crisis and the blatant verbal intimidation of the Supreme Court of the United States.
There is complete disregard for the check and balances our system has built in. When the President fails to achieve goals legislatively, his unelected Czars implement policy through organizations like the EPA and HHS, where the actions operate without close scrutiny and proper accountability. Governing against the will of the people, Obama used every trick and bribe imaginable to pass Obamacare, which with the individual mandate is unconstitutional.
President Obama has declared that he finds the Constitution an imperfect document, because it limits what the government can do rather than what the government should and could do. Thank God for that, or else charlatans like Obama could wreck the country.
While hints of an imperial presidency have been swirling for some time, the attack on the SCOTUS has raised many an eyebrow, with with the Investors Business Daily editorial page hammering him and Judge Andrew Napolitano suggesting we are close to totalitarianism in a recent FOX News interview.
Massive government spending is placing smothering debt on this nation which is unsustainable and will lead to a crash of the economic system. Quantitative easing is destroying wealth, and high regulation and taxation and is handicapping growth. Civil unrest is being stoked by the administration along with attempts to discredit each of our pillars of founding governance. Contract law has been broken, most recently during the MF Global default.
Quite frankly, I am astonished more people fail to recognize the overwhelming evidence that our President is not acting under the Constitution he swore to uphold. In fact, he is working to undermine it, and replace it molded to his hearts content. As he has stated, it is an imperfect document in his eyes, and through appointing Supreme Court Judges who share his disdain for it and by circumventing Congress and legislative oversight, we have on our hands a very dangerous and arrogant man who given another term could alter our history forever.
As is stands now, we are one Supreme Court Judges appointment away from being nothing short of Venezuela. By the way, contrary to media reports, they do not hold free elections there, so rather than a representative republic, we would have on our hands a dictatorship. Benjamin Franklin said the founders gave us a republic, if we can keep it. The moment is ciritical, and this is our responsibility; therefore, Obama simply MUST be defeated.
In recent weeks, seemingly in desperation although his arrogance would suggest otherwise, President Obama has attacked anybody and everybody, save the Muslim Brotherhood. Obama attacked the Catholic Church, oil companies and has verbally assaulted many of the precious pillars of our government. With the media complicit in his back pocket, Obama has hammered Congress in slamming Rep. Ryan (R:WI) and his efforts at avoiding a catastrophic debt crisis and the blatant verbal intimidation of the Supreme Court of the United States.
There is complete disregard for the check and balances our system has built in. When the President fails to achieve goals legislatively, his unelected Czars implement policy through organizations like the EPA and HHS, where the actions operate without close scrutiny and proper accountability. Governing against the will of the people, Obama used every trick and bribe imaginable to pass Obamacare, which with the individual mandate is unconstitutional.
President Obama has declared that he finds the Constitution an imperfect document, because it limits what the government can do rather than what the government should and could do. Thank God for that, or else charlatans like Obama could wreck the country.
While hints of an imperial presidency have been swirling for some time, the attack on the SCOTUS has raised many an eyebrow, with with the Investors Business Daily editorial page hammering him and Judge Andrew Napolitano suggesting we are close to totalitarianism in a recent FOX News interview.
Massive government spending is placing smothering debt on this nation which is unsustainable and will lead to a crash of the economic system. Quantitative easing is destroying wealth, and high regulation and taxation and is handicapping growth. Civil unrest is being stoked by the administration along with attempts to discredit each of our pillars of founding governance. Contract law has been broken, most recently during the MF Global default.Quite frankly, I am astonished more people fail to recognize the overwhelming evidence that our President is not acting under the Constitution he swore to uphold. In fact, he is working to undermine it, and replace it molded to his hearts content. As he has stated, it is an imperfect document in his eyes, and through appointing Supreme Court Judges who share his disdain for it and by circumventing Congress and legislative oversight, we have on our hands a very dangerous and arrogant man who given another term could alter our history forever.
As is stands now, we are one Supreme Court Judges appointment away from being nothing short of Venezuela. By the way, contrary to media reports, they do not hold free elections there, so rather than a representative republic, we would have on our hands a dictatorship. Benjamin Franklin said the founders gave us a republic, if we can keep it. The moment is ciritical, and this is our responsibility; therefore, Obama simply MUST be defeated.
Sunday, February 12, 2012
Five Forgotten
When Glenn Beck left FOX News Channel after smashing rating numbers for the 5PM EST time slot, FOX rebounded nicely with the new show The Five, with five rotating panelists discussing the events of the day. This show is outstanding, with excellent co-hosts Eric Boling and Kimberly Guilfoyle. Anything that puts the lovely Guilfoyle in front of the camera will be a ratings success.Even so, this week I was following five stories, or in the case of Rick Santorum's sweep, variations of, that The Five did not cover. As good as this show is, and as good as FOX is, many very important stories do not get proper coverage, if they get covered at all.
Below are five that I focused on this week, and I wonder is any of the readers knew about these stories. They are important, so have a look
NANEX
I was over at Zero Hedge and found an alarming story on high frequency trading. On the day Uncle Sam was downgraded back in August, a staggering increase in high frequency trading ensued and has continued since. Check out the story and the chart over on Zero Hedge HERE.
It seems to be that algorithmic trading between computers is taking place at a highly increased level, and while there is a place for such trading, this type of activity is dangerous. You got any ideas about what is happening?
RICK SANTORUM
Rick Santorum had a big night this week, winning Minnesota, Missouri and Colorado. They picked Rick! Although the pundits discussed the momentum perhaps gained by Santorum, and the problems perhaps exposed by his opponents, I focused on his outstanding victory speech.
Santorum spoke truths about the Obama administration, that they seek to rule over the people rather than listen to them, that they wish to rule over them and run their lives with a lengthy list of central planning programs because they think they know better than you.
Obama really does look down on the people, with soaring rhetoric about helping the people while actively reducing the freedom of the people. Santorum has the right message, and it would do America well to hear him!
BORDER CALAMITY
On GBTV, Glenn Beck presented an incredibly alarming program on the activities taking place on the border. Although there are a handful of Americans who have some level of understanding about the high level of national security issues taking place along the border, most have no clue how serious this problem is. Unfortunately, the problem is worse than ever, and our government, on both sides, is for the most part sitting it out. Why, I do not know.
Although I could not get elected dog catcher in my community, if I were President, with a thorough understanding of the severity of the problem, I would have the US Military seize the day immediately, using any force necessary.
Hearing the facts presented is a depressing indictment of the failures of our government, but unfortunately, something you must become knowledgeable about. The video is not for the faint of heart, so viewer discretion is advised. However; knowledge is power, so have a look on Glenn Beck HERE and HERE.
HOUSING PLAN
Stupid is as stupid does. President Obama has yet another plan to punish banks and reward bad behavior in an effort to boost the housing market. Jimmy Petholoukis leaked that Obama was ready to release the plan, hitting banks with punitive punishment and forcing them to refinance some home owners. Should the banks fail to comply, a newly appointed Czar will seek them out for punishment. Of course, costs force upon the banks will be passed on to the consumers. This will raise the cost of capital, reduce the amount of mortgage activity and prolong the crisis.
Obvious to just about everyone not involved with wealth redistribution, this program will only hamper any recovery in the housing market. As we have repeatedly said, for the housing market to improve, a growing job market must be in place allowing free market principles, free from government interaction, to form an efficient market where buyers compete with sellers in arms length transactions. Under such a market, price will be established a normal market can resume.
Obama will not allow this to take place, as his principles center around wealth redistribution directed by a government who picks winners and losers. This creates an inefficient market, is not free market capitalism, and will restrict the pace of any recovery.
CME GROUP
On Wednesday, the S&P cut the CME Group Inc.'s credit rating in the aftermath of the debacle involving the collapse of MF Global. The has been under fire since MF files for bankruptcy. Under normal market conditions, this news would some kind of spook the markets.
Be advised there is much more here than meets the eye, and the fallout could be mind boggling. Customer funds were stolen, and with this type of activity taking place, the integrity of the market is zero. Ann Barnhardt, of Barnhardt Capital Management, has been leading the way in covering the real story going on here from a birds eye view.
Tuesday, January 24, 2012
Technocratic Foul
Although an untold number of pundits and the mainstream media have echoed in song the European crisis is behind us, nothing could be further from the truth. Just yesterday, while three big French banks were being downgraded, a deal reached by the Greek Government and its private creditors has been rejected by Eurozone finance ministers. Today, IMF Managing Director Christine Lagarde called for a larger bailout fund for the European Central bank to work with to prohibit "disastrous implications for systemic stability.”
As distressing as it is that foreign markets have deteriorated to such levels, more troubling is the idea that all this has been orchestrated. Orchestrated to collapse monetary systems into a global structure, perhaps headed by the IMF.
Sound far fetched?
Romano Prodi, former Goldman Sachs consultant, creator of the Euro and former EU Commission President, offered the following comment in December of 2001.
"I am sure the Euro will oblige us to introduce a new set of economic policy instruments. It is politically impossible to propose that now. But some day there will be a crisis and new instruments will be created.”
Europe is in full financial crisis as we speak, and those in control of the purse strings make demands of member nations, which at best decreases their sovereignty. Nigel Farage has been calling out these folks for a few years now, and he was at it again last November.
Should a new economic system come to fruition and a new structure take over, it will be based on the collective, or Communism. Unfortunately, as the must read blog Zero Hedge reports, this may be beginning in Italy, who is on the verge of collapse. Glenn Beck has more:
Although the media is complicit in the events of the day, you likely do not come across the very strange stories taking place on a daily basis. Technocrats are running the show, but not only in Europe. In the form of Obama's cast of Czars, we have technocrats orchestrating policy here in America as we speak, led by Cass Sunstein.
For some examples, recall the shafting of the auto maker bond holders, and more recently, the investors left holding the bag at MF Global. Central to this is the Federal Reserve, who as First Principles Capital Management CEO Doug Dachille contends, has taken over the casino. In short, wealth is being transferred, without your consent.
Those in favor of globalization, and President Barack Obama has long been associated with these folks, are working hard to destabilize and collapse the economic system of America, Cloward and Piven style. Who with any sanity would manage increasing debt levels of north of 15 trillion? That more than defines unsustainable.
Kevin Freeman, CEO of the Freeman Global Investment Counsel and author of the new bestseller "Secret Weapon," recently spoke with Glenn Beck about his contention of how the 2008 crash came to pass. Please take time to listen to this compelling information:
Each of the players are still quite active, and Freeman points out we are in the midst of the third and final stage. The re-election of President Obama would allow him to escalate the collapse where a European style structure will be waiting to take over. Through his actions and grand thoughts of himself, it is obvious Obama would love to be Dictator in Chief. Even is he is defeated, the job of reversing the direction will be very tough, as players on both sides are participatory in this effort.
Should a major crisis occur, most will be longing for government assistance, assistance the government will be all to willing to give, free market capitalism will pay a heavy price. The price to paid is a monumental loss of individual liberty and freedom, something those preaching the collective, such as shared sacrifice, are aiming to restrict if not eliminate.
The salvation of the state is the watchfulness in its citizen, provided the citizen has the power granted by our Founding Fathers and the US Constitution. Don't let the technocrats take it away. Should it happen, no technocrats will call a technical foul. The game, the grand experiment, our Gift, will be over.
As distressing as it is that foreign markets have deteriorated to such levels, more troubling is the idea that all this has been orchestrated. Orchestrated to collapse monetary systems into a global structure, perhaps headed by the IMF.
Sound far fetched?
Romano Prodi, former Goldman Sachs consultant, creator of the Euro and former EU Commission President, offered the following comment in December of 2001.
"I am sure the Euro will oblige us to introduce a new set of economic policy instruments. It is politically impossible to propose that now. But some day there will be a crisis and new instruments will be created.”
Europe is in full financial crisis as we speak, and those in control of the purse strings make demands of member nations, which at best decreases their sovereignty. Nigel Farage has been calling out these folks for a few years now, and he was at it again last November.
Should a new economic system come to fruition and a new structure take over, it will be based on the collective, or Communism. Unfortunately, as the must read blog Zero Hedge reports, this may be beginning in Italy, who is on the verge of collapse. Glenn Beck has more:
Although the media is complicit in the events of the day, you likely do not come across the very strange stories taking place on a daily basis. Technocrats are running the show, but not only in Europe. In the form of Obama's cast of Czars, we have technocrats orchestrating policy here in America as we speak, led by Cass Sunstein.
For some examples, recall the shafting of the auto maker bond holders, and more recently, the investors left holding the bag at MF Global. Central to this is the Federal Reserve, who as First Principles Capital Management CEO Doug Dachille contends, has taken over the casino. In short, wealth is being transferred, without your consent.
Those in favor of globalization, and President Barack Obama has long been associated with these folks, are working hard to destabilize and collapse the economic system of America, Cloward and Piven style. Who with any sanity would manage increasing debt levels of north of 15 trillion? That more than defines unsustainable.
Kevin Freeman, CEO of the Freeman Global Investment Counsel and author of the new bestseller "Secret Weapon," recently spoke with Glenn Beck about his contention of how the 2008 crash came to pass. Please take time to listen to this compelling information:
Each of the players are still quite active, and Freeman points out we are in the midst of the third and final stage. The re-election of President Obama would allow him to escalate the collapse where a European style structure will be waiting to take over. Through his actions and grand thoughts of himself, it is obvious Obama would love to be Dictator in Chief. Even is he is defeated, the job of reversing the direction will be very tough, as players on both sides are participatory in this effort.
Should a major crisis occur, most will be longing for government assistance, assistance the government will be all to willing to give, free market capitalism will pay a heavy price. The price to paid is a monumental loss of individual liberty and freedom, something those preaching the collective, such as shared sacrifice, are aiming to restrict if not eliminate.
The salvation of the state is the watchfulness in its citizen, provided the citizen has the power granted by our Founding Fathers and the US Constitution. Don't let the technocrats take it away. Should it happen, no technocrats will call a technical foul. The game, the grand experiment, our Gift, will be over.
Monday, January 16, 2012
Future Financial Mayhem
You may not recognize it, but you are being lied to.
For an example, which is a full assault on your wallet, look no further than the monetization of the debt, which Fed Chairman Ben Bernanke said would not happen. Well, Investors Business Daily reports that the FED is readying for more stimulus. Perplexing for sure, given the failed results of previous quantitative easing, QE1 and QE2. Printing money decreases asset value, which surely will not be of assistance the millions of homeowners underwater.
Media outlets report that the economy is growing and jobs are being created, as evidenced by the unemployment number presented by the federal government. If that is true, it would not be necessary for the FED to engage in QE3.
Speaking of the FED, something has gone terribly wrong over the last few years. The FED is the lender of last resort and is charged with conducting monetary policy. Historically, Presidents have had little power over the FED, with the FED operating outside of executive branch influence, the exception being appointments to the boards and appointing the Charmian, if necessary.
Although the FED is by far the most powerful governmental agency, there is little regulatory oversight over its activities. Somewhere recently, particularly under President Obama, The FED seems to be carrying water for the administration and assisting in the implementation of policy. This is very troubling, particularly when the leader of the executive branch is not a free market capitalist.
Recent actions by the FED, seeming to begin with TARP, have broken tendencies and are raising concerns on both sides of the aisle. The creation of the conditions that allowed MF Global to take place is a recent example of the now problematic status of the FED, and how you are being lied to.
For a brilliant explanation, please see First Principles Capital Management CEO Doug Dachille at the Yale School of Management last December:
The government, using the FED through regulatory influence and intervention, is now choosing winners and losers. Although Fannie and Freddie are still in operation, it is the FED behind the curtain who is crowding banks out of the mortgage origination market and setting unreasonable credit requirements. As Dachille points, out, life insurance companies are being squeezed, and Sallie Mae has been taken over and private lending has been crowded out.
With MF Global, customer accounts were not protected. They were stolen to pay major players. Again, as Dachille discusses, with the suffocating Dodd-Frank bill, you might think customer accounts might be protected. If the regulators are charged with one thing, it would be to protect the integrity of the system, the trust that customer accounts not participating in risk taking activity are not hypothecated and can be made whole in a timely fashion.
This did not happen at MF Global, and due to the lack of trust in the markets sure to emerge because of this, bad things are on the horizon. If this can happen at MF Global, it can happen at any firm housing investments. A customer obviously has no control over hypothecation by these firms and therefore cannot be guaranteed a return of the investment should the firm be severely compromised or fail.
Beginning with the shafting of the bondholders of the automakers, the rule of law and trust of the marketplace, integral for the survival of a free market capitalist system, has been violated. You are being lied when government officials and the media inform you that everything is fine.
Until the rule of law is reestablished, the government becomes a bystander and the FED resumes normal open market operations, the market place is compromised and for you to be participatory in it, Caveat Emptor.
For an example, which is a full assault on your wallet, look no further than the monetization of the debt, which Fed Chairman Ben Bernanke said would not happen. Well, Investors Business Daily reports that the FED is readying for more stimulus. Perplexing for sure, given the failed results of previous quantitative easing, QE1 and QE2. Printing money decreases asset value, which surely will not be of assistance the millions of homeowners underwater.
Media outlets report that the economy is growing and jobs are being created, as evidenced by the unemployment number presented by the federal government. If that is true, it would not be necessary for the FED to engage in QE3.
Speaking of the FED, something has gone terribly wrong over the last few years. The FED is the lender of last resort and is charged with conducting monetary policy. Historically, Presidents have had little power over the FED, with the FED operating outside of executive branch influence, the exception being appointments to the boards and appointing the Charmian, if necessary.
Although the FED is by far the most powerful governmental agency, there is little regulatory oversight over its activities. Somewhere recently, particularly under President Obama, The FED seems to be carrying water for the administration and assisting in the implementation of policy. This is very troubling, particularly when the leader of the executive branch is not a free market capitalist.
Recent actions by the FED, seeming to begin with TARP, have broken tendencies and are raising concerns on both sides of the aisle. The creation of the conditions that allowed MF Global to take place is a recent example of the now problematic status of the FED, and how you are being lied to.
For a brilliant explanation, please see First Principles Capital Management CEO Doug Dachille at the Yale School of Management last December:
The government, using the FED through regulatory influence and intervention, is now choosing winners and losers. Although Fannie and Freddie are still in operation, it is the FED behind the curtain who is crowding banks out of the mortgage origination market and setting unreasonable credit requirements. As Dachille points, out, life insurance companies are being squeezed, and Sallie Mae has been taken over and private lending has been crowded out.
With MF Global, customer accounts were not protected. They were stolen to pay major players. Again, as Dachille discusses, with the suffocating Dodd-Frank bill, you might think customer accounts might be protected. If the regulators are charged with one thing, it would be to protect the integrity of the system, the trust that customer accounts not participating in risk taking activity are not hypothecated and can be made whole in a timely fashion.
This did not happen at MF Global, and due to the lack of trust in the markets sure to emerge because of this, bad things are on the horizon. If this can happen at MF Global, it can happen at any firm housing investments. A customer obviously has no control over hypothecation by these firms and therefore cannot be guaranteed a return of the investment should the firm be severely compromised or fail.
Beginning with the shafting of the bondholders of the automakers, the rule of law and trust of the marketplace, integral for the survival of a free market capitalist system, has been violated. You are being lied when government officials and the media inform you that everything is fine.
Until the rule of law is reestablished, the government becomes a bystander and the FED resumes normal open market operations, the market place is compromised and for you to be participatory in it, Caveat Emptor.
Sunday, January 8, 2012
Banking Shore Leave
For those out working every day to stay afloat, a review of the daily news put forth by the drive by media reveals an economy slowly emerging from stability, albeit with anemic growth. The worst is over. Everything is fine, nothing to see here.
But if you look closely at what is really happening, there is major economic trouble lurking about all over the place. Much of the focus has been on Europe, as they struggle to escape a collapse. A European collapse would certainly be a major problem for US financial markets, which are in real trouble.
In particular trouble are the banks. As has been noted repeatedly, banks are borrowing at next to free from The FED and can lend to customers at approximately 5%, which would command high profit levels. But little lending is taking place, as lending for the housing market is extremely difficult to command, credit lines are evaporating and small business loans are rare. In fact, now loans to small business are being called.
The Los Angeles Times details a story of a small business owner having his loan called by Bank of America. He has the option of paying it off or restructuring at a new increased rate. Fox Business Network's Gerri Willis discusses this situation.
What motivation would the banks have to alienate customers in this fashion? Well, there are much bigger issues the banks are facing, and Economist David McAlvany outlines the problems to FOX Business's David Asman. Take a listen:
Under extreme duress, at what level will the banks stop in attempting to call loans and restructure loans not called at substantially higher interest rates? Most people are barely surviving now, so restructuring of this kind will bankrupt many with the banks seizing whatever assets they can. Seems far fetched I know, but did it just happen in the MF Global saga?
Ann Barnhardt thinks so. Barnhardt joins Warren Pollock to discuss this situation and what may be coming.
While portions of the forecasting going on may be worst case scenarios, it is clear that the economic standing of Uncle Sam is not on sound footing. Contract law is being broken, as evidenced by the auto bondholders, and the transformation of wealth (theft) is taking place. Banks are attacking customers, and the raising of credit card interest rates is a small example.
It is going to be an interesting time as we move through the 2012 election, and you should take steps now to secure your financial footing if possible. Should Obama, who has demonstrated his disdain for the rules set forth by our Constitution by his eagerness to bypass Congress to implement his ideas, be re-elected, a top down governmental dictatorship may be our future.
It will be the end of America as you once knew it; no longer a nation of laws, but a nation of men.
But if you look closely at what is really happening, there is major economic trouble lurking about all over the place. Much of the focus has been on Europe, as they struggle to escape a collapse. A European collapse would certainly be a major problem for US financial markets, which are in real trouble.
In particular trouble are the banks. As has been noted repeatedly, banks are borrowing at next to free from The FED and can lend to customers at approximately 5%, which would command high profit levels. But little lending is taking place, as lending for the housing market is extremely difficult to command, credit lines are evaporating and small business loans are rare. In fact, now loans to small business are being called.
The Los Angeles Times details a story of a small business owner having his loan called by Bank of America. He has the option of paying it off or restructuring at a new increased rate. Fox Business Network's Gerri Willis discusses this situation.
What motivation would the banks have to alienate customers in this fashion? Well, there are much bigger issues the banks are facing, and Economist David McAlvany outlines the problems to FOX Business's David Asman. Take a listen:
Under extreme duress, at what level will the banks stop in attempting to call loans and restructure loans not called at substantially higher interest rates? Most people are barely surviving now, so restructuring of this kind will bankrupt many with the banks seizing whatever assets they can. Seems far fetched I know, but did it just happen in the MF Global saga?
Ann Barnhardt thinks so. Barnhardt joins Warren Pollock to discuss this situation and what may be coming.
While portions of the forecasting going on may be worst case scenarios, it is clear that the economic standing of Uncle Sam is not on sound footing. Contract law is being broken, as evidenced by the auto bondholders, and the transformation of wealth (theft) is taking place. Banks are attacking customers, and the raising of credit card interest rates is a small example.
It is going to be an interesting time as we move through the 2012 election, and you should take steps now to secure your financial footing if possible. Should Obama, who has demonstrated his disdain for the rules set forth by our Constitution by his eagerness to bypass Congress to implement his ideas, be re-elected, a top down governmental dictatorship may be our future.
It will be the end of America as you once knew it; no longer a nation of laws, but a nation of men.
Tuesday, December 20, 2011
Crony Corruption Could Collapse America
Several months ago, astonishingly, former New Jersey Governor Jon Corzine was thought to be the leading candidate to replace Timothy Geithner as Treasury Secretary. Both President Obama and Vice President Joe Biden were very fond of Corzine, a former Goldman Sachs CEO, and his economic knowledge and leadership.
That was before MF Global, the commodities boutique Corzine was CEO of went bankrupt and is missing 1.2 billion of customer funds.
Oh, the company that you keep.
Corzine failed miserably as Governor of New Jersey, blowing a hole the size of the Meadowlands in the Garden State checkbook. Residents there, who gathered their senses and elected Chris Christie to clean things up, are witnessing a telling turn around.
But it is Corzine's latest failure that will ultimately have a ripple effect that will engage each of our tax paying citizens. Ann Barnhardt, CEO of Barnhardt Capital Management, Inc., a small independent introducing brokerage, has been some kind of spot in analysis of this case, and recently shut down her operations due to a lack of trust in the commodities futures market. MF Global has exposed what many had feared; that the rule of law in our capital markets can be absent at any given time, and a lawless entanglement with uncertainty is toxic for any investor.
Few think Corzine is an idiot, so the concept that, as he testified in front of Congress, he has no idea how the money went missing is beyond laughable. This money is not mistakenly misplaced; it was stolen. As as George Bailey astutely pointed out, there should be a bank examiner, if not the FBI, with a warrant for the arrest of the firms officers. But surprisingly, perhaps due to the close relationship Corzine has with Obama, there is not. The thought that this event was orchestrated has crossed many a mind, and swamped with supporters of Cloward and Piven in Washington, it gains validity.
As Ms. Barnhardt points out, customer money is gone and the MF Global "trustee" has begun seizing customer assets who traded in precious metals and housed the investment collateral through contracts brokered by MF Gobal.
A form of retracing through the chain of investors, bankrupt or not, to recover losses can be referred to as part of hypothecation. Zero Hedge has been covering the recent emergence of this action like Deion Sanders covering a hobbled tight end. The term was originally making the rounds with respect to a potential collapse of the Euro, but it plays with any loss of collateral where re-pledging has occurred. Sadly, it creates the opportunity for investors on the outside to suffer huge losses, with little legal recourse.
David Buckner got with Glenn Beck to attempt to provided an example of how this could impact the economic system, and it could make your ears bleed. Take a listen:
Fast and Furious, Solyndra and the Chevy Volt are many of the scandals of the Obama administration, but the The MF Global collapse is a canary in the coal mine, and the scandal is much deeper than you know. The MF Global players are part of the crony capitalism set up by the Obama administration. While JP Morgan Chase and George Soros are snapping up the fallout at handsome profits, it seems more likely every day investors will not get their money back.
It has been stolen, by a cast of crony capitalist thieves, with full backing of the corrupt leaders in Washington. More is sure to follow in this case, and the lack of trust in the capital markets Ms. Barnhardt spoke of is growing. Technocrats, in many cases, are in control, operating against the will of the people and the rule of law.
Should a catastrophic economic collapse hit our shores, will your assets be protected from hypothecation from government owned banks? I have often been cited as a master of stating the obvious, but the time to keep your investments on a short lease is staring you in the face.
That was before MF Global, the commodities boutique Corzine was CEO of went bankrupt and is missing 1.2 billion of customer funds.
Oh, the company that you keep.
Corzine failed miserably as Governor of New Jersey, blowing a hole the size of the Meadowlands in the Garden State checkbook. Residents there, who gathered their senses and elected Chris Christie to clean things up, are witnessing a telling turn around.
But it is Corzine's latest failure that will ultimately have a ripple effect that will engage each of our tax paying citizens. Ann Barnhardt, CEO of Barnhardt Capital Management, Inc., a small independent introducing brokerage, has been some kind of spot in analysis of this case, and recently shut down her operations due to a lack of trust in the commodities futures market. MF Global has exposed what many had feared; that the rule of law in our capital markets can be absent at any given time, and a lawless entanglement with uncertainty is toxic for any investor.
Few think Corzine is an idiot, so the concept that, as he testified in front of Congress, he has no idea how the money went missing is beyond laughable. This money is not mistakenly misplaced; it was stolen. As as George Bailey astutely pointed out, there should be a bank examiner, if not the FBI, with a warrant for the arrest of the firms officers. But surprisingly, perhaps due to the close relationship Corzine has with Obama, there is not. The thought that this event was orchestrated has crossed many a mind, and swamped with supporters of Cloward and Piven in Washington, it gains validity.As Ms. Barnhardt points out, customer money is gone and the MF Global "trustee" has begun seizing customer assets who traded in precious metals and housed the investment collateral through contracts brokered by MF Gobal.
A form of retracing through the chain of investors, bankrupt or not, to recover losses can be referred to as part of hypothecation. Zero Hedge has been covering the recent emergence of this action like Deion Sanders covering a hobbled tight end. The term was originally making the rounds with respect to a potential collapse of the Euro, but it plays with any loss of collateral where re-pledging has occurred. Sadly, it creates the opportunity for investors on the outside to suffer huge losses, with little legal recourse.
David Buckner got with Glenn Beck to attempt to provided an example of how this could impact the economic system, and it could make your ears bleed. Take a listen:
Fast and Furious, Solyndra and the Chevy Volt are many of the scandals of the Obama administration, but the The MF Global collapse is a canary in the coal mine, and the scandal is much deeper than you know. The MF Global players are part of the crony capitalism set up by the Obama administration. While JP Morgan Chase and George Soros are snapping up the fallout at handsome profits, it seems more likely every day investors will not get their money back.
It has been stolen, by a cast of crony capitalist thieves, with full backing of the corrupt leaders in Washington. More is sure to follow in this case, and the lack of trust in the capital markets Ms. Barnhardt spoke of is growing. Technocrats, in many cases, are in control, operating against the will of the people and the rule of law.
Should a catastrophic economic collapse hit our shores, will your assets be protected from hypothecation from government owned banks? I have often been cited as a master of stating the obvious, but the time to keep your investments on a short lease is staring you in the face.
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