General News:  Banking, Finance and Endgame Theatrics
 
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"Warren Seeks Chief For Consumer Financial Agency" [12/31/10] "White House adviser Elizabeth Warren and a top lieutenant are quietly asking business and consumer groups for names of people who might run the new Consumer Financial Protection Bureau, people familiar with the matter said. The hunt suggests that Ms. Warren, a lightning rod for some bankers, might not be selected to lead the bureau, a centerpiece of the Dodd-Frank financial overhaul bill that passed this summer. Still, many liberal groups will push to get her in the post. [...]"  Related:  "Ron Paul Does Not Like Elizabeth Warren Or The New Consumer Protection Agency"  [ [3:58]

"California woman arrested in insider trading case" [12/30/10] "Winifred Jiau is at least the sixth person arrested since U.S. authorities raided three hedge funds last month, ratcheting up the pressure on the industry in their more than two-year-old probe. Primary Global Research LLC, an "expert network" firm that linked investors such as hedge funds with industry experts, in a statement said it used Jiau as a consultant from September 2006 to December 2008, when "the relationship was ended." The period roughly corresponds with the time frame in which prosecutors said Jiau's alleged illegal activity took place. Jiau's lawyer was not immediately available to comment. Prosecutors accused Jiau, 43, of selling inside information about publicly traded companies including computer chipmakers Marvell Technology Group Ltd and Nvidia Corp to hedge funds, including the founder of a New York fund that prosecutors did not identify. [...]" 

MSM: "Relief for US as bond auction restores calm" [12/30/10] "Investors scrambled to buy US government debt at an auction of new Treasury bonds yesterday, helping to assuage fears that the markets are running out of patience with the country's enormous deficits.  [...]"  Note:  They have a hard time with the concept of 'foresight', and they believe no one has it.

"Allstate Demands $700MFrom Countrywide/BofA" [12/30/10] "Allstate Insurance demands $700 million from Countrywide Financial nka Bank of America, alleging "systematic" fraud in sale of mortgage-backed securities, in violation of Countrywide's own "theoretical underwriting standards," in a 403-page federal complaint. [...]"   

Commentary: "Banks Had A Plan To Create The Housing Bubble and Foreclosuregate" [12/30/10] "I believe that the banks had a plan to operate with less capital with Fannie and Freddie guaranteeing all manner of subprime loans. We know that they did not guarantee jumbos and many alt a loans, but subprime they did guarantee. So Fannie and Freddie were essential to kick-starting the scam. We have seen how their monstrous child, MERS, has attempted to run around state governments in corrupting the recording of proper documents and notes. So who were the main players in the scam? [...]"  

"Fresh Humiliation For Europe As China Offers To Bailout Debt Ridden Nations - Still Too Little Too Late" [12/28/10] "China has said it is willing to bail out debt-ridden countries in the euro zone using its $2.7 trillion overseas investment fund. In a fresh humiliation for Europe, Foreign Ministry spokesman Jiang Yu said it was one of the most important areas for China's foreign exchange investments. The country has already approached struggling European countries with financial aid, including offering to buy Greece's debt in October and promising to buy $4 billion of Portuguese government debt. [...]"   

Commentary: "No Recovery Under Rule of Bankers" [12/27/10] "There will be no economic recovery for the masses of people in the United States. A real recovery, with decent jobs at decent wages under secure terms of employment, is now impossible absent a social upheaval such as the United States has never experienced. The reason is structural, and in some ways, simple. Wall Street has effectively captured the apparatus of government, and is methodically stripping the country of both its assets and the nation’s ability to pull out of the death spiral. [...]"  

Update:  "Ron Paul, Tom Woods, Jim Rogers and Judge Napolitano Take On the Fed " [12/25/10] [24:19]  "Ron Paul, Tom Woods, Jim Rogers and Judge Napolitano expose the Federal Reserve as a "Den of Vipers" in the latest episode of 'Freedom Watch' [...]"  Note:  Very well done.

"Bloomberg Files Lawsuit Against European Central Bank" [12/23/10] "Bloomberg LP, the parent of Bloomberg News, filed a lawsuit Wednesday that asks the European Union’s General Court in Luxembourg to overturn a decision by the European Central Bank not to disclose documents that show how Greece used derivatives to hide its fiscal deficit. Bloomberg editor in chief Matthew Winkler appeared on Bloomberg Television on Wednesday to talk about the suit. Winkler said, “It’s very straight forward. We are seeking full disclosure of documents that show how Greece was able to finance itself into a predicament that became the European debt crisis as we know it. It’s entirely to the benefit of all the members of the EU, all of the citizens, all the taxpayers and for sure the financial markets. Transparency is something that has a way of enlightening perspective.” Winkler also commented on the derivatives Bloomberg is seeking more information on: “In this case, very complicated, intricate financing techniques were deployed to essentially enable Greece to put off consistently any kind of transparent reckoning of its indebtedness. That’s really at the heart of this case and that’s really why we are seeking these documents.” [...]"  

"Trader Holds $3 Billion of Copper in London" [12/23/10] "As commodity prices soar to new records, the ability of a few traders to hold huge swaths of the world’s stockpiles is coming under scrutiny. The latest example is in the copper market, where a single trader has reported it owns 80%-90% of the copper sitting in London Metal Exchange warehouses, equal to about half of the world’s exchange-registered copper stockpile and worth about $3 billion. [...] J.P. Morgan Chase & Co. recently had a large position in copper, though it is unclear whether the U.S. bank increased its holdings or whether a new player has taken a dominant position."  More On This Story

"It's War: WikiLeaks vs. Bank of America" [12/22/10] [4:32]   " Paul Rosenzweig of the Heritage Foundation talks about Bank of America Corp.'s decision to stop processing transactions for the WikiLeaks website. WikiLeaks founder Julian Assange, who told Forbes magazine that he'll release documents from a U.S. bank next year, said in 2009 that his group had a hard drive from a Bank of America executive. Rosenzweig talks with Erik Schatzker on Bloomberg Television's "InsideTrack." [...]"   

"Deutsche Bank owes $550M for tax fraud" [12/22/10] "Bank admits criminal wrongdoing in connection with its participation in tax shelters that enabled the rich to temporarily avoid paying hundreds of millions of dollars.  [...]" 

"China frets about spreading EU debt woes" [12/21/10] "China urged European authorities to back their tough talk with action on Tuesday by showing they can contain the euro zone's simmering debt problems and pull the bloc out of its crisis soon.  China, which has invested an undisclosed portion of its $2.65 trillion reserves in the euro, said it backed steps taken by European authorities so far to tackle the region's debt problems, but made clear it would like to see the measures having more effect. "We are very concerned about whether the European debt crisis can be controlled," Chinese Commerce Minister Chen Deming said at a trade dialogue between China and the European Union. "We want to see if the EU is able to control sovereign debt risks and whether consensus can be translated into real action to enable Europe to emerge from the financial crisis soon and in a good shape," he said. Concerns that Europe's debt problems will spread beyond euro zone's periphery to engulf bigger economies such as Spain and Italy have weighed on global financial markets this year and taken a toll on the euro. In part to protect its investments, China has repeatedly expressed its support for the single currency. [...]"  

"Pimco says 'untenable' policies will lead to Eurozone break-up" [12/21/10] "Andrew Bosomworth, head of Pimco's portfolio management in Europe, said current policies are untenable in the absence of fiscal union and will lead to a break-up of the euro. "Greece, Ireland and Portugal cannot get back on their feet without either their own currency or large transfer payments," he told German newspaper Die Welt.  He said these countries could rejoin EMU "after an appropriate debt restructuring", adding that devaluation would let them export their way back to health.  Mr Bosomworth said EU leaders were too quick to congratulate themselves on saving the euro last week with a deal for a permanent bail-out fund from 2013.  "The euro crisis is not over by a long shot. Market tensions will continue into 2011. The mechanism comes far too late," he said.  The bond fund argues that the EU strategy of forcing heavily indebted countries to undergo draconian fiscal austerity without offsetting stimulus is unworkable.  The austerity policies are stifling the growth needed to stabilise debt levels. "Can countries inside a fixed exchange-rate system like the euro grow and tighten budget policy at the same time? I don't think so. It didn't work in Argentina," Mr Bosomworth said. Pimco also gave warning that the bond vigilantes have lost faith in the policy and are trying to liquidate their holdings of peripheral EMU faster than the European Central Bank (ECB) can buy the debt, causing a relentless rise in yields, and a vicious circle. [...]"  Note:  Pimco, the world's largest bond fund, has called on Greece, Ireland and Portugal to step outside the Eurozone temporarily, and restructure their debts unless the currency bloc agrees to a radical change of course.

Legal Case: "Morgan Stanley Has Cake & Eats It" [12/20/10] "A federal class action claims Morgan Stanley & Co. charged fees for acting as an investment adviser, while simultaneously denying it is an investment adviser, to duck its responsibilities under the Investment Advisors Act. [...]"   

LaRouche:  "The Fed Report: U.S. Bails Out the Empire, Costing $16 Trillion" [12/20/10]  Video clip [6:55] "After years of stonewalling the Federal Reserve Bank (a private bank), the American people are finally learning the incredible and jaw-dropping details of the Fed's multi-trillion-dollar bailout of Wall Street and corporate America. Perhaps most surprising is the huge sums that went to bailout foreign private banks and corporations." [...]"  

Commentary: "Financial Shocks in Europe and America: Explosion of the Western Public Debt Bubble" [12/19/10] "The second half of 2011 will mark the point in time when all the world’s financial operators will finally understand that the West will not repay in full a significant portion of the loans advanced over the last two decades. For LEAP/E2020 it is, in effect, around October 2011, due to the plunge of a large number of US cities and states into an inextricable financial situation following the end of the federal funding of their deficits.  Media escalation of the European crisis regarding sovereign debt of Euroland’s peripheral countries will have created the favourable context for such an explosion, of which the US “Muni”   market incidentally has just given a foretaste in November 2010 (as our team anticipated last June in GEAB No. 46 ) with a mini-crash that saw all the year’s gains go up in smoke in a few days. This time this crash (including the failure of the monoline reinsurer Ambac  ) took place discreetly   since the Anglo-Saxon media machine   succeeded in focusing world attention on a further episode of the fantasy sitcom “The end of the Euro, or the financial remake of Swine fever” . Yet the contemporaneous shocks in the United States and Europe make for a very disturbing set-up comparable, according to our team, to the “Bear Stearn ” crash which preceded Lehman Brothers’ bankruptcy and the collapse of Wall Street in September 2008 by eight months. But the GEAB readers know very well that major crashes rarely make headlines in the media several months in advance, so false alarms are customary  [...]"  

"Overstock accuses Banksters Goldman, Merrill of racketeering" [12/18/10] "Overstock.com Inc (OSTK.O) plans to amend a lawsuit it filed in early 2007 to include racketeering claims against Goldman Sachs and Merrill Lynch, the online retailer said on Thursday. The original lawsuit, filed in the California superior court in San Francisco, alleged that Goldman Sachs Group Inc (GS.N) and Bank of America's Merrill Lynch unit (BAC.N) engaged in a "massive, illegal stock market manipulation scheme" that involved so-called naked short-selling.  In naked short selling, short sales are executed but never delivered, thereby causing the company's share price to fall. "Merrill, Goldman and certain of their market maker clients agreed to and created a scheme to effect the naked short selling in Overstock securities that is the subject of this action, in order to perpetuate short selling and drive down the price of Overstock, to their mutual profit," alleges the motion, which was filed on Wednesday. A Goldman Sachs spokesman said the bank opposes the motion, but did not elaborate. Bank of America declined comment. Overstock claims the brokerages' actions are illegal under New Jersey's Racketeer Influenced and Corrupt Organizations Act (RICO) and such claims can be decided by non-New Jersey courts. [...]"   

"Irish President Questions Bailout's Constitutionality" [12/18/10] "The President of Ireland, Mary McAleese, made the very unusual move of convening the Council of State to examine the constitutionality of the Credit Institutions Stability Bill, the implementation provision of the IMF/EU bailout of the Irish banks. [...]"  

"Madoff associate's widow to give up $7.2B" [12/18/10] " U.S. authorities confirmed the widow of a Bernard Madoff associate will forfeit more than $7.2 billion her late husband withdrew from Madoff's firm.  [...]"    

"SEC expands mortgage probe" [12/18/10]  "Securities regulators have broadened their inquiry into the mortgage industry, asking big banks about the early stages of securitizing home loans, two sources familiar with the probe said. The Securities and Exchange Commission launched the new phase of its investigation by sending out a fresh round of subpoenas last week to big banks including Bank of America Corp, Citigroup Inc, JPMorgan Chase & Co, Goldman Sachs Group Inc and Wells Fargo & Co, the sources said. Months ago, the SEC began looking into the banks' foreclosure practices following allegations that mortgage servicers were using shoddy paperwork to evict delinquent borrowers from their homes. Now the SEC is looking at how the lenders packaged up mortgages for sale to investors, said the sources, who requested anonymity because the probe is not public. Questions from the SEC include information about the role of so-called "master servicers" -- specialized firms that oversee the selection and maintenance of the large pool of home loans that go into every mortgage-backed bond. In many cases, Wall Street banks that underwrite mortgage-backed securities either own their own master servicing firms or are closely aligned with one.  The Justice Department, banking regulators and the attorneys general in all 50 U.S. states are also probing potential wrongdoing.  Arizona sued Bank of America on Friday, accusing the bank of misleading consumers about its home loan modification process.[...]" 

MSM Programming: "Fox Business News: Peter Schiff: Riots Coming To America" [12/17/10] [6:33]  "Peter Schiff on FOX Business News 12/16/10  [...]"  Note: Having Wayne Rogers, an actor in 'MASH', on board, is a little amusing ... it's interesting to see just how volatile all these people are, now. Keep in mind that many of these people in this video are overly concerned and really into the Orion reality and the game, and they're disturbed.

"Ron Paul: High Unemployment Caused by Federal Reserve" [12/17/10] [6:15]  "Ron Paul describes in no uncertain terms how he plans to fight the Fed.  [...]"  Related:  "Ron Paul to Chair House Sub-Committee On Domestic Monetary Policy"  [2:53]  "Paul announced that Spencer Bachus has promised him the Chair of the House Sub-Committe on Domestic Monetary Policy. Let that sink in. Ron Paul will be killing Bernanke in committee every Friday for the next 2 years. A big win over the Fed’s K Street warlords. [...] 

"U.S. arrests 4 in widening insider trading probe" [12/17/10] "Four people were arrested on charges of leaking secrets about technology companies to hedge funds, including details about Apple Inc's iPad ahead of its launch, in a widening U.S. probe into insider trading. Authorities said another person, a former employee of Dell Inc, had pleaded guilty on December 10 to charges he had provided inside information about the company from late 2007 to August 2010 to research firms and hedge fund managers. The case stems from a more than two-year investigation of hedge funds that intensified on November 22 when federal agents raided Loch Capital Management in Boston, Diamondback Capital Management in Stamford, Connecticut and Level Global Investors in New York. All said they were not targets of the probe. [...]"  

"Wary Customers Cautious Of Increased Credit Card Offers" [12/17/10] "Though banks are again offering credit cards to risky borrowers, not everyone is biting. "I will never, ever have another credit card," Carole Carroll, a New Yorker in her fifties working in finance, said. "It's either I have the cash in my hand or I'm moving back in with my mother."  Carole, and her husband Don, were $88,000 in debt before they entered a debt management program and managed to climb clear. But like millions of Americans with less than stellar borrowing history, the Carrolls are still being targeted by credit card companies. Credit card offers to risky borrowers are surging, according to a report by the New York Times, which found that HSBC, Citigroup, and Discover all mailed out about ten times as many credit card offers this year compared to last year, while Capital One's rate rose to 22 million, a fiftyfold increase. [...]"  Related:  "5 Reasons Not to Pay Your Credit Cards"  

Commentary: "U.S. economy is a giant Ponzi scheme"   Bill Gross (PIMCO)[12/16/10] "Check writing in the trillions is not a bondholder’s friend; it is in fact inflationary, and, if truth be told, somewhat of a Ponzi scheme. Public debt, actually, has always had a Ponzi-like characteristic. Granted, the U.S. has, at times, paid down its national debt, but there was always the assumption that as long as creditors could be found to roll over existing loans – and buy new ones – the game could keep going forever. Sovereign countries have always implicitly acknowledged that the existing debt would never be paid off because they would “grow” their way out of the apparent predicament, allowing future’s prosperity to continually pay for today’s finance.  Now, however, with growth in doubt, it seems that the Fed has taken Charles Ponzi one step further. Instead of simply paying for maturing debt with receipts from financial sector creditors – banks, insurance companies, surplus reserve nations and investment managers, to name the most significant – the Fed has joined the party itself. Rather than orchestrating the game from on high, it has jumped into the pond with the other swimmers. One and one-half trillion in checks were written in 2009, and trillions more lie ahead. The Fed, in effect, is telling the markets not to worry about our fiscal deficits, it will be the buyer of first and perhaps last resort. There is no need – as with Charles Ponzi – to find an increasing amount of future gullibles, they will just write the check themselves. I ask you: Has there ever been a Ponzi scheme so brazen? There has not."

"The Corruption at the Core of the Obama Administration: Frank-Dodd Financial "Reform" bill" [12/15/10] "An article by Louise Story in the New York Times today documents what LPAC has long said about the Frank-Dodd so-called Financial "Reform" bill promoted by the Obama administration. The bill actually consolidated the control over the cancerous multi-trillion dollar derivatives market under the same small group of predatory banks which have brought the world economy the the edge of the abyss. [...]"    

"10 Signs That Confidence In U.S. Treasuries Is Dying" [12/14/10] " .... #2 Already there are signs that some bond investors are looking for the exits. Last week, U.S. Treasuries suffered their largest two day sell-off since the collapse of Lehman Brothers back in September 2008.  #3 The yield on 10-year Treasury bonds set a six-month high on Monday before pulling back a bit. Most analysts believe that Treasury yields are going to push significantly higher in coming weeks. #4 This trend of rising yields has been going on for a while. In fact, yields on 10-year Treasury bonds have been steadily rising since October 7th. [...]"  Related:  "Greenspan Discusses Bonds and Collapse 12/17/2009" [12/11/10] Video clip [4:11]  "Senators ask economic questions during the Federal Budget and Debt meeting on December 17, 2009. Some portion of Greenspan's response was deleted due to time constraints. You can view the full interview on CSPAN [...] Greenspan: "When we begin to see problems in the BOND Market ... that's the 'canary in the coal mine' ... problems would show up in the longer end of the market .. meaning 30 Year Treasuries and 10-Year notes.

Fed sticks with $600B bond-buying program [12/14/10] "The Federal Reserve said Tuesday it will maintain the pace of its $600 billion Treasury-bond-buying program because a slowly improving economy is still too weak to bring down high unemployment. Fed policymakers said they'll continue to monitor the bond-buying program. They left open the option of buying more bonds if the economy weakens, or fewer if it strengthens more than expected. The bond purchases are intended to lower long-term interest rates, lift stock prices and encourage higher spending. [...]" 

"Moody's May Cut US Rating on Tax Package" [12/14/10] "Moody's warned Monday that it could move a step closer to cutting the U.S. AAA rating if President Obama's tax and unemployment benefit package becomes law. The plan agreed to by President Obama and Republican leaders last week could push up debt levels, increasing the likelihood of a negative outlook on the United States rating in the coming two years, the ratings agency said. A negative outlook, if adopted, would make a rating cut more likely over the following 12-to-18 months.  [...]"  Related:  Commentary:   "Another Reason to Say No to Tax Capitulation Act"  "There are certainly a plethora of reasons for Senators and Representatives to oppose the Tax Capitulation Act. Granting huge income tax cuts to millionaires and billionaires, who neither need nor deserve the relief. It gives $25 billion in estate tax cuts to only the 6,600 richest plutocrats, an average of $3.8 million per family. For Americans earning less that $20,000 per year, it’s a tax increase. It gets only one year of unemployment relief, and does nothing for the 99ers. If that were not enough, already, yet, it promises to trash the bond rating for US securities. [...]"  "Senate vote next step for tax deal"  "Final Senate approval could come as early as Tuesday on the hotly contested tax deal negotiated by President Barack Obama and Republican leaders. [...]"  

"Washington and Regulators exist to ‘serve the banks,’ next House finance chairman declares" [12/14/10] "Alabama Republican Spencer Bachus, the incoming chairman of the House banking committee, suggested Congress and federal regulators should play a subservient role with banks. "In Washington, the view is that the banks are to be regulated, and my view is that Washington and the regulators are there to serve the banks," Bachus told The Birmingham News in an interview. The Republican leadership last week designated Bachus the next chairman of the powerful House Financial Services Committee, which is tasked with overseeing banks, financial markets, housing and consumer credit. Democrats characterized the remark as a Freudian slip, [...]"  

"The Vatican Bank ‘Allowed Clergy to Act as Front for Mafia’" [12/14/10] "The Vatican Bank is under new scrutiny in a case involving money-laundering allegations that led police to seize €23m (£19.25m) in September. The Vatican calls the seizure of assets a “misunderstanding” and expresses optimism it will be quickly cleared up. But fresh court documents show that prosecutors say the Vatican Bank deliberately flouted anti-laundering laws  [...]"    Related: "Money laundering scandal rocks Vatican Bank" [12/13/10] "This is no ordinary bank: The ATMs are in Latin. Priests use a private entrance. A life-size portrait of Pope Benedict XVI hangs on the wall.  Nevertheless, the Institute for Religious Works is a bank, and it's under harsh new scrutiny in a case involving money-laundering allegations that led police to seize euro23 million ($30 million) in Vatican assets in September. Critics say the case shows that the "Vatican Bank" has never shed its penchant for secrecy and scandal. The Vatican calls the seizure of assets a "misunderstanding" and expresses optimism it will be quickly cleared up. But court documents show that prosecutors say the Vatican Bank deliberately flouted anti-laundering laws "with the aim of hiding the ownership, destination and origin of the capital." The documents also reveal investigators' suspicions that clergy may have acted as fronts for corrupt businessmen and Mafia. The documents pinpoint two transactions that have not been reported: one in 2009 involving the use of a false name, and another in 2010 in which the Vatican Bank withdrew euro650,000 ($860,000) from an Italian bank account but ignored bank requests to disclose where the money was headed. The new allegations of financial impropriety could not come at a worse time for the Vatican, already hit by revelations that it sheltered pedophile priests. The corruption probe has given new hope to Holocaust survivors who tried unsuccessfully to sue in the United States, alleging that Nazi loot was stored in the Vatican Bank. [...]"    

On the Edge with Max Kaiser-Latest on Global Financial Crisis:  Part 1 [12/13/10]  [8:25] "Dr. Paul Craig Roberts, former assistant Secretary to the US Treasury, is Max's guest for today's show to talk about the WikiLeaks. Max asks Dr. Roberts about what he thinks of what is happening to WikiLeaks story, in particular the US, led by Joe Lieberman, which has been forcing WikkiLeaks offline. This, and several other questions on global finance and economy are asked in this edition of Press TV's On the Edge with Max Kaiser. [...]"  Note:  Part 2 [6:56]| Part 3 [7:47]   Very good interview and very informative, in terms of what is happening now.

"A Secretive Banking Elite Rules Trading in Derivatives" [12/12/10] "On the third Wednesday of every month, the nine members of an elite Wall Street society gather in Midtown Manhattan.  The men share a common goal: to protect the interests of big banks in the vast market for derivatives, one of the most profitable — and controversial — fields in finance. They also share a common secret: The details of their meetings, even their identities, have been strictly confidential. Drawn from giants like JPMorgan Chase, Goldman Sachs and Morgan Stanley, the bankers form a powerful committee that helps oversee trading in derivatives, instruments which, like insurance, are used to hedge risk. In theory, this group exists to safeguard the integrity of the multitrillion-dollar market. In practice, it also defends the dominance of the big banks. The banks in this group, which is affiliated with a new derivatives clearinghouse, have fought to block other banks from entering the market, and they are also trying to thwart efforts to make full information on prices and fees freely available. Banks’ influence over this market, and over clearinghouses like the one this select group advises, has costly implications for businesses large and small, like Dan Singer’s home heating-oil company in Westchester County, north of New York City. This fall, [...]"    

"Murder Or Suicide? Bernie Madoff’s son, Mark, found dead" [12/12/10] " Bernard Madoff’s son Mark was found dead in the living room of his SoHo apartment this morning — hanging from a black dog leash on the two-year anniversary of his father’s stunning downfall, officials said. Officers were called to 158 Mercer St. around 7:30 a.m. after Mark’s father-in-law reported the grisly find — the younger Madoff, 46, hanging fully clothed from a black dog leash attached to a pipe in the apartment ceiling, police said. His 2-year-old son was sleeping in a nearby bedroom and was unharmed, as was Grouper, their labradoodle. “It’s a terrible and unnecessary tragedy,” said Mark Madoff’s lawyer, Martin Flumenbaum. “Mark was an innocent victim of his father’s monstrous crime who succumbed to two years of unrelenting pressure from false accusations and innuendo.” [...]"   

"SEC Stops $68 Million Ponzi Scheme" [12/12/10] "The SEC seeks an emergency injunction to stop what it calls "an ongoing $68 million Ponzi scheme" run by Millennium Bank and five people who control it. It claims that defendants William Wise, Kristi Hoegel and others hoodwinked 375 investors by selling them "self-styled 'certificates of deposit'" that promised returns "up to 321 percent higher than legitimate bank-issued CDs." [...]" 

"Swiss Bank Refuses Access to Client’s Physical Gold Holdings" [12/12/10] "A client of a major Swiss bank was recently refused access to his physical gold and had to hire attorneys and threaten to expose the bank publicly before finally getting it back in his own hands, according to Jim Rickards of Omnis.  “My inference is that that gold was not there,” Rickards told King World News. “The bank had to scramble, go out and find it somewhere before they could make good delivery.” Rickards expects the world will eventually go to a gold standard-backed currency. “To me, the big issue is, is it going to be intelligent or is it going to be ugly?” Rickards says. “Is it going to be something we think about, we have a public debate, hearing in Congress … we give some thought to, and then, over time … we do it in stages” so that markets can adjust. Unfortunately, says Rickards, we’re on “the other path,” ignoring the issue and acting as if gold plays no role in finance, “which, of course, it does, keep printing money until almost spontaneous collapse of the dollar and then, in the midst of chaos, on an emergency basis, have the president announce that we’re back on the gold standard.” [...]"    Related: "Chinese Appetite For Gold Continues Unabated"   "The Chinese appetite for gold continues unabated. Gold imports by China—the largest producer of the yellow metal in the world—is set to touch a record 260 tonnes for the year 2010, bullion dealers predicted.  Already, the yellow metal import by China has increased five-fold for the last 10 months of 2010. By the end of November 30, the Chinese gold imports stood at 209 tonnes. In 2009, China had imported just 45 tonnes of gold, compared to the massive 350 tonnes of gold that rival India had imported in the same year. India is currently the largest gold importer and consumer in the world. Bullion industry leaders in Beijing predicted that China will overtake India in gold imports in coming years, as the Chinese appetite for gold jewellery, gold, silver coins and bars is zooming. [...]"  

"Bernanke: The Dollar System Is Flawed" [12/12/10] "Federal Reserve Chairman Ben Bernanke’s speech in Frankfurt may be one of the most important and underreported events since America abandoned the gold standard. In it, he said the dollar standard was flawed and that America’s trade deficit was imperiling America. “[I]t would be desirable for the global community, over time, to devise [a new] international monetary system,” he said.  Never before has a Fed chairman made such an admission. Never before has one ever disparaged his own currency in such a way. The speech was a radical departure from the status quo and a major signal for a looming policy change. It means that trade war is virtually guaranteed and the dollar will soon be devalued. Dramatic global economic upheaval is on the way. On November 19, Ben Bernanke told a room full of bankers in Frankfurt, Germany, that the world’s sense of common purpose had waned. Tensions among nations over economic policies are intensifying, he said. It threatens the world’s ability to find a solution. U.S. unemployment rates are high, he told the gathering, and given the slow pace of economic growth, likely to remain so. Approximately 8.5 million jobs have been lost so far, and when you take into account population growth, the size of the employment gap is even larger, he said. Unemployment may get even worse before it gets better. “In sum, on its current economic trajectory the United Sates runs the risk of seeing millions of workers unemployed or underemployed for many years,” lamented Bernanke. “As a society, we should find that outcome unacceptable.” [...]"   

"Attorney Declares War on the SEC" [12/12/10] "Attorney Steven Altman sued the SEC in Federal Court, claiming the agency "has wrongfully sought to 'federalize' the subject of attorney ethics discipline" - a function of state judiciaries - by its Nov. 10 order permanently barring him from "appearing or practicing (law) before the Commission." [...]"    

"The Fall of the House of Windsor?" [12/11/10] "Even Prince Charles and Camilla are feeling the backlash from the murderous austerity cuts which the empire is imposing on the people of England. There is a fundamental conflict between the interests of the people of England as a nation-state and the interests of the British financial empire. Under a global Glass-Steagall, even the English will be freed from the shackles of the British Empire. [...]"    

"Jury decides ex-Goldman Sachs programmer stole code" [12/11/10] "A former Goldman Sachs programmer was convicted Friday of stealing secret computer code that enables high-speed trading from the investment bank when he took a new job with a rival last year.  The jury in U.S. District Court in Manhattan convicted Sergey Aleynikov of North Caldwell, N.J., of theft of trade secrets and transportation of stolen property in interstate and foreign commerce. Aleynikov, 40, of North Caldwell, N.J., could face up to 15 years in prison when he is sentenced March 18. Aleynikov and his lawyer, Kevin Marino, declined to comment after the verdict. Prosecutors who had called it a case about theft and greed requested after the verdict that Aleynikov wear an electronic bracelet until sentencing. The judge did not immediately rule on the request.  The criminal case was brought after federal authorities concluded that Aleynikov left Goldman Sachs in 2008 with trade secrets to help his new company — Teza Technologies — gain an advantage with high-speed trading. Marino had argued that the case should have been no more than a civil lawsuit. Aleynikov, a naturalized U.S. citizen who came to the U.S. from Russia in 1990, left his $400,000 job as a vice president at Goldman Sachs Group Inc. to join Teza Technologies LLC, where he was to be paid $300,000 annually, with a $700,000 bonus in his first year and a revenue-sharing plan that would have added $150,000 annually.  Marino said during the two-week trial that his client was merely trying to copy parts of the company’s software that were taken from public software codes. He acknowledged that Aleynikov had violated the company’s confidentiality agreements but said that was a civil matter. Aleynikov was arrested on July 3, 2009, as he returned from a trip to his new employer’s offices in Chicago. The trial brought into focus sophisticated computer programs that use mathematical formulas to execute scores of trades in short periods of time after evaluating moment-to-moment developments in the markets. The government said Goldman Sachs makes millions of dollars a year in profits from high-frequency trading and carries a competitive advantage over rivals because of the speed of its computer programs.  [...]"   

"Ron Paul to be Named Chair of the House Subcommittee on Domestic Monetary Policy" [12/10/10] "Texas Congressman Ron Paul announced on Freedom Watch on Wednesday night, that he will be named the Chair of the House Subcommittee on Monetary Policy. Ron Paul stated during the interview “the Chairman of the Financial Services Committee, Spencer Bachus, has told me today verbally that I will be the Chairman of that subcommittee.” The Judge quickly joked that the “blood pressure is going up as we speak over at the Federal Reserve.”  This is a huge victory for friends of liberty as many, including Paul, believe the Federal Reserve is the root cause of the financial crisis. Paul has been one of the most outspoken critics of the Federal Reserve on Capitol Hill over the past 30 years. Paul introduced legislation last year to Audit the Fed (HR 1207) and had over 320 co-sponsors in the House. The bill was later stripped of its substance and a watered down version was included in the Financial Services Act that was passed into law in 2010. Our politicians routinely call for transparency yet the Federal Reserve continues to operate in total secrecy. The Fed has so much control and influence over the economy, monetary policy, and our national debt, yet, they answer to nobody. The current financial crisis is one this country has not seen since the Great Depression, and now is the time to shed light on the dealings of the Federal Reserve. The fact that Ron Paul will Chair the monetary policy subcommittee is a significant step in the much needed direction of accountability and transparency at the Federal Reserve. [...]"  Note:   Video clip  [5:53] 

"Keiser Report №102: Markets! Finance! Gold & Silver!" [12/10/10] [26:43]    "This time Max Keiser and co-host, Stacy Herbert, talk about Americas most dangerous banker being sued by trustees for aiding and abetting the Madoff ponzi scheme and about the U.S. administration suffers from the Stockholm Syndrome. In the second half of the show, Max Keiser talks to Dr. Kiriakos Tobras about his campaign to stop financial terrorists attacking the Greek economy, stopspeculators.gr.  [...]"   

"JPMorgan, Bank Of America Municipal Bond Scam May Be 'Tip of the Iceberg" [12/10/10] "The government has identified more than a dozen firms, including JPMorgan Chase & Co., UBS AG, and Societe Generale as unindicted co-conspirators in a criminal case brought by the Justice Department against a Los Angeles investment broker. JPMorgan, UBS, a unit of General Electric Co. and a former subsidiary of Belgian bank Dexia SA have also reported in regulatory filings that they face civil suits by the U.S. Securities and Exchange Commission. The companies say they are cooperating with the government. [...]"  Related: "Bank of America admits fraud in US antitrust case" [12/09/10] "US banking giant Bank of America has admitted it committed fraud in the municipal bond derivatives market and will pay 137.3 million dollars in damages, the government said Tuesday.  "Bank of America entities have agreed to pay a total of 137.3 million dollars in restitution to federal and state agencies for its participation in a conspiracy to rig bids in the municipal bond derivatives market," the Department of Justice said in a statement.  Bank of America entered into agreements with the US Securities and Exchange Commission, the Internal Revenue Service (IRS), the Office of the Comptroller of Currency and 20 state attorneys general, the department said. The combined outcome provides for payment of restitution to the IRS and to municipalities harmed by the bank's anti-competitive conduct in the muni-bond derivatives market. Bank of America employees engaged in illegal conduct, including bid rigging, in connection with the marketing and sale of tax-exempt municipal bond derivatives contracts, the department said.  The department also said the Charlotte, North Carolina-based bank, the biggest US bank by assets, had entered into a written agreement with the Federal Reserve Board "to address certain remedial measures." The bank's board of directors is to submit a written plan within 90 days to the Federal Reserve Bank of Richmond in Virginia aimed at strengthening the board's oversight of the bank in competitively bid transactions, according to a document posted on the Fed's website. [...]"   

"Madoff Trustee Sues 7 Global Banks for $1B" [12/10/10] " Seven global banking institutions enabled disgraced financier Bernard Madoff's Ponzi scheme by "creating and offering derivative investment products linked to various Madoff feeder funds," a court-appointed trustee alleged Wednesday. Trustee Irving Picard announced a lawsuit in federal bankruptcy court in Manhattan that seeks to recover more than $1 billion from Citibank, Natixis, Fortis, ABN AMRO, Banco Bilbao Vizcaya Argentaria, Merrill Lynch, and Nomura. The suit alleges the banks received transfers of money from Madoff's business "through numerous feeder funds at times when they either knew or should have known of Madoff's fraud." Picard said in a release the banks enabled the Madoff Ponzi scheme "by opening a spigot of new money into the Madoff feeder fund network, by creating and offering derivative investment products linked to various Madoff feeder funds, including the Fairfield Greenwich, Kingate and Tremont families of funds." [...]"  

"Global Bond Rout Deepens -- US Authorities Losing Control Over "Events" [12/10/10] "The yield on 10-year Treasuries – the benchmark price of money worldwide and the key driver of US mortgages rates – has rocketed to 3.3pc, up 35 basis points since President Barack Obama agreed on Monday to compromise with Senate Republicans on tax cuts. The Treasury sell-off has ricocheted through the global system, triggering bond sell-offs in Asia, Europe and Latin America. Japan's finance ministry braced as borrowing costs on seven-year debt jumped by a sixth in one trading session, while German Bunds punched through 3pc.  ... if yields are rising because people think Amirca's fiscal situation is unsustainable, then its armaggedon," he said.  "The US can get away with this only because it is the world's reserve currency. This would be totally unacceptable in any other country. We think these problems will start to crystallise for the US in the second half of 2011, once the European debt crisis has stabilised," he said.  The warnings were echoed by Li Daokui, a rate-setter for China's central bank ...  ... the bond rout is a sign that Washington can no longer take global markets for granted. "We have reached the limits of tolerance for budget deficits. There is a feeling around the world that nobody in Washington is paying any attention to the implications of what they are doing, ...  ... "At the same time we've seen a loss of confidence in Fed strategy. There is a feeling that the Fed doesn't care about inflation – in fact, wants more of it – and that is certainly not in the interest of bondholders," [...]"  

"Sentenced to Debt: 'EU bosses, not people must pay for Euro Fail'" [12/09/10] [2:55]  "In London, thousands of students are planning to take to the streets in a final attempt to block the raising of tuition fees, ahead of Thursday's parliamentary vote. Trade unionists are also expected to join in. It's the latest in a string of rallies against sweeping austerity measures and budget cuts across Europe. Many European Union countries have been shaken by protests against proposed cuts needed to secure EU-IMF bailouts. The latest were in Ireland - against the state's narrowly passed budget - the toughest in its history. The plan includes six billion euros of spending cuts and tax hikes. Richard Boyd Barrett, from the People Before Profit Alliance says, Ireland failed because its own government was over-enthusiastic in pursuing flawed European polices. [...]"   

Commentary: "Are The Federal Reserve’s Crimes Too Big To Comprehend?" [12/09/10] "What if the greatest scam ever perpetrated was blatantly exposed, and the US media didn’t cover it? Does that mean the scam could keep going? That’s what we are about to find out. I understand the importance of the new WikiLeaks documents. However, we must not let them distract us from the new information the Federal Reserve was forced to release. Even if WikiLeaks reveals documents from inside a large American bank, as huge as that could be, it will most likely pale in comparison to what we just found out from the one-time peek we got into the inner-workings of the Federal Reserve. This is the Wall Street equivalent of the Pentagon Papers. I’ve written many reports detailing the crimes of Wall Street during this crisis. The level of fraud, from top to bottom, has been staggering. The lack of accountability and the complete disregard for the rule of law have made me and many of my colleagues extremely cynical and jaded when it comes to new evidence to pile on top of the mountain that we have already gathered. But we must not let our cynicism cloud our vision on the details within this new information. Just when I thought the banksters couldn’t possibly shock me anymore… they did. [...]"   

"Iceland exits recession" [12/09/10]  "Decision to force bondholders to pay for banking system's collapse appears to pay off as economy grows 1.2% in third quarter.
In contrast to Ireland, Iceland's taxpayers refused to foot the bill for the debts accumulated by the banking sector. Bondholders were told to accept dramatic reductions in the value of repayments on bank debt after the sector borrowed beyond its means to fund ambitious investments abroad. The return to growth is likely to put pressure on Irish politicians to explain why Dublin rejected a more radical restructuring of its debts and a departure from the eurozone. [...]"  Related:  "Iceland cuts rates again to 4.5%""Iceland, which is emerging from a deep recession, cuts interest rates to 4.5%, the eighth cut this year. [...]"  

"U.S. fiscal health worse than Europe's: China adviser" [12/08/10] "The U.S. dollar will be a safe investment for the next six to 12 months because global markets are focused on the euro zone's troubles but America's fiscal health is worse than Europe's, an adviser to the Chinese central bank said on Wednesday. [...]"   

"Keiser Report №101: Markets! Finance! Scandal!" [12/07/10] [25:55]  "This time, Max Keiser and co-host, Stacy Herbert, challenge French finance minister, Christine Lagarde, to play football against Manchester United if she can’t keep French banks from running to the U.S. Federal Reserve for emergency cash.  [...]"   

LaRouche: "Hapless Eurozone Emergency Meetings on How Big To Make New Bail-Out Funding" [12/07/10] "Last night in Brussels, a meeting of the eurozone's 16 finance ministers took place, on the task of deciding how big or small to make the emergency eurofund for financial bailout to handle current and future crises. The Inter-Alpha system is coming down; the euro is in its death throes, but the clown show continues. [...]"   

"Euro collapse 'possible' amid deepening divisions over bail-out" [12/07/10] "Under questioning from MPs on the Treasury Select Committee, Stephen Nickell, a member of the Office for Budget Responsibility (OBR) and a former Bank of England rate-setter, said a collapse of the single currency was "a possibility". Asked more broadly about the sustainability of currency unions, he added: "The general consensus is that sooner or later they fail for one reason or another – but that doesn't mean to say it always happens." His comments came as deep divisions in the eurozone threatened to drive Spain, Portugal and Ireland into more difficulty. [...]"  

"Operation Targets Hundreds In Financial Fraud Sweep, Seeking Billions" [12/07/10] " A nationwide law enforcement crackdown targeting financial fraud has led to cases against 343 criminal defendants involving $8.3 billion in estimated losses, Attorney General Eric Holder announced Monday.  "Operation Broken Trust" is the first national effort of its kind aimed at a broad array of investment fraud schemes and the 3 1/2-month campaign was organized by the Obama administration's Financial Fraud Enforcement Task Force. The schemes that were uncovered highlight "the pervasiveness of the threat," Shawn Henry, the FBI's executive assistant director, told a news conference. In one case in Texas, an oil and gas investment Ponzi scheme defrauded 7,700 investors of more than $485 million. In another case, in Chicago, the operator of a Ponzi scheme victimized elderly Italian immigrants and hundreds of others after promising them annual returns of 10 to 15 percent. Seventy-five investors lost $89 million in a Ponzi scheme in Florida. Nevin Shapiro, who pleaded guilty for his role in the scheme, used some of the money to pay illegal sports gambling debts, to buy floor seats at Miami Heat basketball games and to make payments on his yacht and his residence in Miami Beach. [...]"    Related:  "532 charged in huge fraud crackdown, involving $10 billion" [12/08/10] "A federal law-enforcement task force targeting financial fraud cases nationwide has led to charges against 532 criminal and civil defendants involving $10.4 billion in total losses for more than 120,000 victims, Attorney General Eric H. Holder, Jr., announced . [...]"      Strange that the numbers change later

"A Billion New $100 Bills Quarantined in Huge Vaults in Fort Worth, Texas and Washington, DC" [12/07/10] "A significant production problem with new high-tech $100 bills has caused government printers to shut down production of the new notes and to quarantine more than one billion of the bills in huge vaults in Fort Worth, Texas and Washington, DC, CNBC has learned.  Initially scheduled for release in February of 2011, the new bills were announced with great fanfare by officials at the Treasury Department and the Federal Reserve in April.  At the time, officials announced the new bills would incorporate sophisticated high-tech security features, including a 3-D security strip and a color-shifting image of a bell designed to foil counterfeiters. But the production process is so complex, it has instead foiled the government printers tasked with producing billions of the new notes. An official familiar with the situation told CNBC that 1.1 billion of the new bills have been printed, but they are unusable because of a creasing problem in which paper folds over during production, revealing a blank unlinked portion of the bill face. A second person familiar with the situation said that at the height of the problem, as many as 30 percent of the bills rolling off the printing press included the flaw, leading to the production shut down. The total face value of the unusable bills, $110 billion, represents more than ten percent of the entire supply of US currency on the planet, which a government source said is $930 billion in banknotes. For now, the unusable bills are stored in the vaults in “cash packs” of four bundles of 4,000 each, with each pack containing 16,000 bills. Officials don’t know exactly what caused the problem. “There is something drastically wrong here,” a person familiar with the situation said. “The frustration level is off the charts.” [...]"    Related:  "Video: New Benjamins break government printers"  Video clip  "A production problem with the new high-tech $100 bills has caused government printers to shut down. NBC's Brian Williams reports. (Nightly News) [...]  

Flashback 1/13/08:  "Mysterious $100 ‘Supernote’ Counterfeit Bills Appear Across World" [12/07/10] "Whatever the origin of the bills, “it’s by far the most sophisticated counterfeiting operation in the world,” said James Kolbe, a former congressman from Arizona who oversaw funding for the Secret Service. “We are not certain as to how this is being done or how it’s happening.” —The paper appears to be made from the same cotton and linen mix that distinguishes U.S. currency from others. It includes the watermarks visible from the other side of the bill, colored microfibers woven into the substrate of the banknote and an embedded strip, barely visible, that reads USA 100 and glows red under ultraviolet light.  —The bills include tiny microprint that appears as a line to the naked eye, but under magnification is actually lettering around the coat of Benjamin Franklin or hidden in the number 100 that reads either USA 100 or The United States of America. —The same optically variable ink, or OVI, is used on the number 100 on the bottom right side of the bill. Exclusively made for, and sold to, the United States, this OVI ink gives the appearance of changing color when a banknote is viewed from different angles. —At least 19 different versions have been printed, each corresponding to a tiny change in U.S. engraving plates — an odd thing for any counterfeiter to do. Also, they show practically invisible but intriguing additions.  —Stranger yet, the number of supernotes found indicates that whoever is printing them isn’t doing so in large quantities. Only $50 million worth of them have been seized since 1989, an average of $2.8 million per year and not even enough to pay for the sophisticated equipment and supplies needed to make them. Industry experts such as Thomas Ferguson, former director of the Bureau of Engraving and Printing, said the supernotes are so good that they appear to have been made by someone with access to some government’s printing equipment. Some experts think North Korea does not have the sophistication to make the bills; others suspect Iran and others speak of criminal gangs in Russia or China. [...] Klaus Bender, the author of Moneymakers: The Secret World of Banknote Printing, said the phony $100 bill is “not a fake anymore. It’s an illegal parallel print of a genuine note.” He claims that the supernotes are of such high quality and are updated so frequently that they could be produced only by a U.S. government agency such as the CIA."  Note: The original story was in the Kansas City Star, but it has been deleted.

"LaRouche: On The Urgent Need for a Hamiltonian Credit System" [12/06/10] "Lyndon LaRouche issued the following statement, in response to a question about the specifics of how to reinstate Glass-Steagall and reestablish a Hamiltonian credit system. LaRouche's lengthy response was written on Dec. 4, 2010. [...]"    

"JP Morgan Revealed As Mystery Trader That Bought 80 Percent of LME Copper Worth £1 Billion" [12/06/10] "The American investment bank JP Morgan is the mystery trader that grabbed more than half the copper on the London Metal Exchange, The Daily Telegraph has learned. The $1.5bn (£1bn) trade was described in the LME’s daily update as “between 50pc and 80pc” of the 350,000 tonnes in reserves. This pushed up the price for the immediate delivery of copper to $8,700 – its highest level since the financial crisis in October 2008. A high premium on the spot copper price normally reflects fear of a shortage of the metal, which is in hot demand across the world as a vital component in a mass of products from electrical gadgets to wiring.  A source close to the situation said that JP Morgan had bought the copper contracts, adding that amount is closer to the “lower portion of the range” disclosed by the LME. Traders said JP Morgan’s name had been circulating the market all day as the most likely buyer, especially since it is about to launch a physically-backed “exchange-traded fund” (ETF) in copper imminently. One metals broker dealing on the LME said: “The story is that they’re positioning themselves in front of the ETF. There’s been a lot of speculation it’s them.” 

Commentary: "Immoral Progressivism Failing Miserably" [12/04/10] "In England, youths are rioting. In Portugal, labor unions staged a national strike last Wednesday. A little over a month ago, France and Greece were subjected to large, violent demonstrations and riots. A common thread? In each of these countries, the unrest was engendered by economic austerity measures proposed and/or enacted by government. A far more salient common thread? The morally corruptive nature of the progressivist ideology.  As the four recent examples, along with others occurring all over the world illustrate, a group of like-minded "thinkers" is emerging. It is a group composed in equal parts of economic illiteracy and pathological self-entitlement. Only an utter fool—or a dedicated progressive—would riot or strike because someone else can no longer afford to underwrite your lifestyle. [...]"   

"Spain OKs new austerity measures to calm markets" [12/03/10] " [...]"  Note: But it will produce hardship in the population, with predictable results, and the 'standard' solution is to institute fascist policies in order to control the anger, instead of really addressing the problems.  

"Senator Bernie Sanders: America Is Now A Banana Republic" [12/03/10] [13:09]    Note: Amazing speech.

"Madoff trustee sues JPMorgan, others for $6.4B" [12/03/10] "The trustee trying to recover money for investors cheated by Bernard Madoff is suing JP Morgan Chase for $6.4 billion, saying the bank had a central role in abetting the disgraced financier as he carried out his fraud. Trustee Irving Picard announced Thursday the filing of the lawsuit in U.S. Bankruptcy Court in New York. Picard alleges the bank ignored the fraud and collected fees and profits, even though it had well-documented suspicions about the scam. The lawsuit seeks to recover at least $1 billion in fees and profits and $5.4 billion in damages to be distributed to Madoff victims. The victims lost billions after Madoff revealed in December 2008 that his investment company was a gigantic fraud. Madoff is serving 150 years in federal prison for the fraud.  [...]"  

"The Hackett Group: Acceleration of Offshoring Trend Driving Loss of Millions of Finance and IT Jobs in U.S. and Europe" [12/02/10] "There's no end in sight for the jobless recovery in business functions such as corporate finance and IT, in large part due to the accelerated movement of work to India and other offshore locations, according to new research from The Hackett Group, Inc. (NASDAQ: HCKT). The dramatic job losses seen by U.S. and European companies in 2008 and 2009 are expected to continue through 2014, according to The Hackett Group. [...]"  

  "Fed Names Recipients of $3.3 Trillion in Crisis Aid" "The Federal Reserve, under orders from Congress, today named the counterparties of about 21,000 transactions from $3.3 trillion in aid provided to stem the worst financial panic since the Great Depression.  Bank of America Corp. and Wells Fargo & Co. were among the biggest borrowers from one program, the Term Auction Facility, with as much as $45 billion apiece. Some aid went to U.S. units of foreign institutions, including Switzerland’s UBS AG, France’s Societe Generale and Germany’s Dresdner Bank AG. The Fed posted the data on its website to comply with a provision in July’s Dodd-Frank law overhauling financial regulation. The information, which also includes the amounts of transactions and interest rates charged, spans six loan programs as well as currency swaps with other central banks, purchases of mortgage-backed securities and the rescues of Bear Stearns Cos. and American International Group Inc. [...]"  "UK banks borrowed more than $1 trillion from US Federal Reserve""British banks borrowed more than $1 trillion (£640bn) from the Federal Reserve during the financial crisis, led by Barclays following its swoop on the US business of Lehman Brothers. [...]"     Related: "Fed Aid Went Beyond U.S. Banks to Industry, Foreign Firms" [12/02/10] "The financial crisis stretched even farther across the economy than many had realized, as new disclosures show the Federal Reserve rushed trillions of dollars in emergency aid not just to Wall Street but also to motorcycle makers, telecom firms and foreign-owned banks in 2008 and 2009. The Fed’s efforts to prop up the financial sector reached across a broad spectrum of the economy, benefiting stalwarts of American industry including General Electric and Caterpillar and household-name companies such as Verizon, Harley-Davidson and Toyota. The central bank’s aid programs also supported U.S. subsidiaries of banks based in East Asia, Europe and Canada while rescuing money-market mutual funds held by millions of Americans. The biggest users of the Fed lending programs were some of the world’s largest banks, including Citigroup, Bank of America, Goldman Sachs, Swiss-based UBS and Britain’s Barclays, according to more than 21,000 loan records released Wednesday under new financial regulatory legislation. [...]" 

"Chris Whalen With Dylan Ratigan: Which Banks & How Much - Surprises From Bernanke's Forced Disclosure" [12/02/10]   Video clip [6:00]  

"IMF Expects to Double Its Lending Capacity " [12/02/10] "The International Monetary Fund expects to double its lending capacity to $450 billion over the next few months, giving it additional firepower to deal with the sovereign-debt crisis engulfing Europe, according to IMF officials and documents. [...]" 

"Fed's Emergency-Loan Borrowers Included Foreign Banks, Goldman Sachs, GE, McDonalds, PIMCO & Michael Dell" [12/02/10] " Bernie Sanders is on the war path. --- Source - Bloomberg The Federal Reserve’s emergency lending during the financial crisis spanned the global economy, from the largest U.S. financial firms to community banks, hedge funds and a fast-food company.  [...]"   

"Sen. Sanders Compels Fed Release of Info on '$16 Trillion' In Bailouts; Calls for Glass Steagall" [12/02/10] "The Federal Reserve yesterday released some details of its massive bailout low-interest lending to banks and non-bank corporations alike, set at "$16 trillion in purchases of commercial paper" by Sen. Bernie Sanders (I-Vt.), whose legislation compelled the Fed to release the information. [...]" Related: "Russian Analyst Cites LaRouche, Glass Steagall Principle, In Discussion of Ongoing Crisis"

"LaRouche Denounces Fascist Coup Attempt by Commission" [12/02/10] "Lyndon LaRouche yesterday sharply denounced the efforts of Simpson and Bowles, the co-chairmen of the Catfood Commission—and the entire Inter-Alpha Peter Peterson gang—to pull off "a fascist coup," through their push for murderous Schachtian austerity. "By the very nature of what they are proposing, they are promoting a fascist coup," LaRouche declared. "Everything that they are calling for is a clear violation of our Constitution." LaRouche added that "the entire system is coming down—now—and the only solution is a return to Alexander Hamilton's credit system." [...]"  Related: LaRouche: Weekly Report [12/02/10]  Video clip [60:09] 

"Report: Giant life insurance lobby key force behind estate tax" [12/02/10] "“The report highlights the contrast between the public perception of estate tax proponents as fighting to break up wealthy, almost oligarchic families and the reality that a key force behind the tax is an industry for which ten percent of its revenues depend on maintaining the status quo. One of the most outspoken voices urging a higher estate tax, Warren Buffet, owns six life insurance companies, the report says.” [...]"  Note:  Warren Buffet: man against libertarianism.

"Bank of America Becoming Bank of Asia as Revenue Rises 30%" [12/02/10] "Bank of America is headed for its best year advising on mergers and acquisitions in Asia-Pacific since 2005, and arranging initial public offerings since 2007, data compiled by Bloomberg show. The combined companies have generated 30 percent more revenue from traditional investment-banking businesses in the region than they did as separate entities, according to a person with knowledge of the matter who asked not to be identified because the figures aren’t public. [...]"    

Alex Jones TV:  "The Austerity Hammer Starts to Fall on United States as Debt Consumes Europe" [12/02/10] Video clip [14:14] "It’s been quite a saga, but this economic crisis has been planned sabotage by design. The age of the Offshore Global Cartel is the age of economic warfare with the wealthy Western world. The 3rd World has largely already been brought to its knees. The remaining vestiges of national sovereignty must be eliminated and the middle class consumer society must be swept back to the feudal age by way of a tidal wave looting of living standards, cut wages & pensions, and the bread and circuses of cheap plastic goods and entertainment. The upper middle classes, the array of independent businesses, remaining lone giants and other true competition to the New World Order mafia economy system must be consolidated or dominated. Alex Jones explains why it is the bankers or us will be free at the end of this crisis. The total cost of the derivatives is over $1.5 Quadrillion, a sum that will completely consume the world in perpetual debt, a sum that can never be repaid. It is an economic shearing, a shearing of the sheep. The economic crisis has always really been a complete transfer of power to the banking class. [...]"  

"Hungary Nationalizes Private Pension Funds" [12/02/10] "Economy Minister Gyorgy Matolcsy announced the policy yesterday, escalating a government drive to bring 3 trillion forint ($14.6 billion) of privately managed pension assets under state control to reduce the budget deficit and public debt. Workers who opt against returning to the state system stand to lose 70 percent of their pension claim. “This is effectively a nationalization of private pension funds,” David Nemeth, an economist at ING Groep NV in Budapest, said in a phone interview. “It’s the nightmare scenario.” Hungary is rolling back pension changes implemented more than a decade ago as countries from Poland to Lithuania find themselves squeezed by policies designed to limit long-term liabilities by shifting workers into private funds. Now the cost is swelling debt and deficit levels at a time when the European Union is demanding greater fiscal discipline. Hungary, the most indebted eastern member of the EU, is following the example of Argentina, which in 2001 confiscated about $3.2 billion of pension savings before the country stopped servicing its debt. [...]"  

"Portugal denies need for bail-out" [12/01/10] "Lisbon says it will not require an EU-led financial rescue package, despite growing speculation that it will need assistance. [...]"  

Keiser Report №99: Markets! Finance! Scandal! [11/30/10] [26:30]   "Max Keiser and co-host, Stacy Herbert, look at the scandals of silver shortages and quitting the dollar. In the second half of the show, Max Keiser talks to Paul Mladjenovic, author of Precious Metals for Dummies, about silver market manipulation. [...]"   

Pluto In Capricorn Strikes Again: "Wikileaks Will Unveil Major U.S. Banking Scandal In Early 2011 - "An Ecosystem Of Corruption"" [11/30/10] "First WikiLeaks spilled the guts of government. Next up: The private sector, starting with one major American bank. In an exclusive interview earlier this month, WikiLeaks founder Julian Assange told Forbes that his whistleblower site will release tens of thousands of documents from a major U.S. financial firm in early 2011. Assange wouldn’t say exactly what date, what bank, or what documents, but he compared the coming release to the emails that emerged in the Enron trial, a comprehensive look at a corporation’s bad behavior. “It will give a true and representative insight into how banks behave at the executive level in a way that will stimulate investigations and reforms, I presume,” he told me. [...]"  Related:   "Forbes’ full interview with Assange" See "Wiki" link at the top of the Special Articles panel for more related stories. 

"Irish Opposition Attacks Government for Selling out the Country to the Banks" [11/30/10] "The government's sellout of the country to save the private banks was roundly denounced by opposition parties, especially its looting of the national pension fund. "It's hard to imagine how this deal could have been much worse," said finance spokesman for the Fine Gael party, Michael Noonan. [...]"   

"Maurice Sonnenberg's comeback" [11/30/10] "Investment banker Maurice Sonnenberg was appointed this week by the Speaker of the House to lead the National Commission for the Review of the Research and Development Programs of the U.S. Intelligence Community. Maurice Sonnenberg is one of those people deeply entrenched in the industrial-military complex, who keep a low public profile yet wield a lot of power in Washington circles [There are few photos of him; here he is seen attending a Gala event at the Ritz Carlton Georgetown.]. He was senior international advisor to global investment bank Bear, Stearns & Co. Inc. until its collapse in 2008, which sparked a financial crisis of global proportions. This respectable institution had loaned up to 100 times more money than there was available. Now that Bear, Stears & Co., Inc. has been purchased by JP Morgan Chase, thanks to a Federal Reserve loan, Maurine Sonnenberg is back on top. Alongside Jean-Louis Bruguière and Sir John Scarlett, he is also adviser to the Chertoff Group [...]"   

"U.S. Bond Bubble Ready to Burst While the World Focuses Attention Elsewhere" [11/30/10]    Related:  "Time to Sell Bonds"  "Every time a frightening headline jolts the financial markets, investors flock to the relative "safety" of US Treasury bonds. But just how safe is a "safe" Treasury bond?  The most insidious and dangerous part of the global debt story is hiding in plain sight. US Federal debt is now roughly 85% of American GDP, according to "official" figures. But after including the present value of future liabilities like Social Security and Medicare, US debt- to-GDP soars to nearly 500%. This kind of debt could push even the world's most powerful nation down the slippery slope to default. If China, Japan and other big foreign American creditors abandoned the Treasury market, bond prices would plunge and bond yields (which move inversely to price) would soar. Tellingly, bond prices have been dropping already, despite the Fed's massive $900 billion quantitative easing ($600 billion of new money and $300 billion from maturing securities) initiative designed to keep bond prices high and yields low. [...]"  

Commentary: "The Big Lie: Governments 'Have to Save the Big Banks'" [11/29/10] "Many of the world's top economists and financial experts have said that the too big to fail banks are destroying the world economy, that they must be broken up in order to restore stability, and that small banks will take care of all of the lending which anyone needs. See this, this and this. And yet many people still believe the myth that the giant banks have to be saved at all costs. How could that be? [...]"   

"Structural adjustment coming to the West" [11/29/10] "A small update to the global financial crisis page looks at further examples of structural adjustment-like policies for industrialized nations. This example is Iceland, which like Ireland, has had a banking crisis. However, Ireland has gone the route of publicly backing the banks’ debts, thus socializing the risks. The Irish population is already bearing the brunt of a recession with austerity measures, but the recent bailout by the EU, IMF and others puts more pressure on the public. [...]"  

"Citizens of Europe Rage Against the Machine" [11/29/10] "The international bankster machine seeking to colonize Western nations through debt is now meeting resistance from Greece, to France, to Ireland, to Italy, to Spain, to Portugal, and to the U.K. These new protests in Ireland and Italy follow a crippling 2-week strike in France where citizens took over fuel refineries and other vital infrastructure, more strikes in Greece which took over the Acropolis, and a massive student protest in the UK that caused physical damage to government buildings. All of these protests were sparked by governments reducing benefits or increasing fees and taxes on a population that had little to do with the private gambling of banks. These European protests are intensifying as the international bankers move to collect their "pound of flesh" through austerity and sale of public assets. As Europeans are becoming acutely aware of the dubious plan to loot them and the anger at their corrupt elected officials for bowing to banks has reached a boiling point. In all cases the governments are enforcing austerity measures on the people after the private banks over-leveraged themselves to the breaking point, threatening to bring down entire nations.  [...]"  

"Ireland's largest demonstration in 30 years draws over 100,000 onto Dublin streets" [11/29/10] "One of the largest demonstrations in the Irish Republic's history brought more than 100,000 people on to Dublin's streets in protest over the international bailout and four years of austerity ahead. As European officials thrashed out the finer details of an €85bn rescue package, huge crowds braved freezing temperatures to demonstrate against the cuts, aimed at driving down Ireland's colossal national debt. The main march to O'Connell Street passed off peacefully but there was an uneasy standoff outside the Irish parliament as two lines of Garda Siochána officers hemmed in around 100 leftwing demonstrators who had broken away from the union-organised protest. Fireworks were thrown at gardai outside the gates of the Dail as protesters shouted: "Burn it down, burn it down." Extra police were rushed to the scene to surround the ad hoc demonstration by leftwing and anarchist groups, who also set fire to a picture of the taoiseach, Brian Cowen. Among those on the main march there was deep anger that most of the €80bn-plus from the EU and IMF will be used to shore up Ireland's ailing banks. [...]"  Related: "Irish Pension Reserve Funds To Be Spent On Banks"  "Up to 15 billion Euros from the Irish National Pensions Reserve Fund to be used to bail out banks! [...]"  Note: They couldn't get enough money from the EU, so they stole it from the Irish peoples retirement fund.

"Big New York insider trading probe spawns another" [11/27/10] "An insider trading case last year that federal authorities said was the biggest ever is providing a recipe for another case that may be even bigger. The current case is largely an extension of work that led to the arrest of Galleon Group founder Raj Rajaratnam in October 2009. The Galleon investigation marked the first time that federal authorities used wiretaps in an insider trading probe.  Similarly, wiretaps led to the first arrest in the latest case. Don Ching Trang Chu, a consulting firm executive, was arrested Wednesday for allegedly providing private information about a company's corporate earnings to a hedge fund. The FBI this week searched the offices of three hedge funds and subpoenaed some of Wall Street's most influential firms, including Janus Capital Group and SAC Capital. The Galleon case has resulted in 23 arrests and 14 guilty pleas. Many of those arrested are cooperating in the latest investigation. The cases represent an offensive by U.S. Attorney Preet Bharara against white collar crime in the securities industry. One aim of the current case: unearthing those who helped match employees at public companies with large-scale traders hoping to profit from information that wasn't available to the public.[...]"  Note:  Like US Congressmen do.

"No TARP in Iceland" [11/26/10] "“The difference is that in Iceland we allowed the banks to fail,” Grimsson said in an interview with Bloomberg Television’s Mark Barton [Thursday]. “These were private banks and we didn’t pump money into them in order to keep them going; the state did not shoulder the responsibility of the failed private banks.” [...]"  Note:  Iceland’s President Olafur Grimsson, surveying the global financial mess, including the pending $112 billion bailout of Ireland’s shaky banking sector, can gloat a bit. His country, he says, is in better shape because it let private banks fail two years ago. Note: Of course, the US Federal Reserve is a private institution, as well ...

"Putin Proposes Russia-EU Union" [11/26/10] "'Ahead of his two-day visit to Germany, Russian Prime Minister Vladimir Putin has projected a vision of a 'harmonious economic community stretching from Lisbon to Vladivostok' in reaction to the economic crisis. Chancellor Angela Merkel, however, said she will "pour some cold water" on the idea. Writing in German daily Sueddeutsche Zeitung on Thursday (25 November), Mr Putin argued that more integration between Russia and the EU and even a "common contintental market" would allow them to overcome the effects of the crisis and prevent a new one from emerging.  "We should be frank about it: The global economic crisis has revealed both Russia and the EU to be economically very vulnerable," Mr Putin wrote. Russia is still too dependent on its oil and gas exports, he argued, while the EU has lost its competitive edge in the world through its de-industrialisation policy. A "harmonious economic community stretching from Lisbon to Vladivostok" would imply strategic alliances in key industries, such as shipbuilding, car manufacturing, space exploration and the pharmaceutical industry.' [...]"   Related:  "World Bank report points to deepening social crisis in Russia"  Note: I don't think Putin is thinking things through very well.

"Spanish Bailout Could Be Too Much for Euro" [11/26/10] " The eurozone has bailed out troubled member states with success thus far, but Europe now faces a graver economic threat then ever before: the possibility of a major economic collapse in Spain. The busts in Greece and Ireland (and now possibly Portugal) have all been manageable because the economies in question are relatively small. But Spain's is twice the size of all three combined, the New York Times reports.  Investors are unsatisfied with the proposed austerity plans and bailouts-in-waiting, and their worries are showing elsewhere: the yield spread between Spanish bonds and those of Germany is higher than it has been since the euro was introduced. Spanish officials continue to maintain that the country can weather the economic storm, pointing to stress tests of the nation's banks that found only 5 institutions to be at-risk. Yet the results of such tests have been weakened by the developments in Ireland, whose banking system also ended up being frailer than anticipated—and could become even less credible depending on what happens in Portugal: Spain is that country's biggest trade partner and creditor. "Spain’s banks already have enough problems, but the exposure to Portugal could just turn into the wild cart which upturns the whole apple cart," said one economist. [...]"   Related:  See the video below, The Euro Game Is Up! 

"Merkel confident plummeting euro can ride out storm" [11/26/10] "Fresh questions have been raised about the long-term prospect of the euro as the single currency spiralled to reach a near two-month low against the dollar yesterday. The euro was down slightly again last night, fuelled by ongoing concerns over Ireland's economy and its government's ability to ride out the storm, as well as jitters over the seemingly unstoppable ripple effect of the eurozone's debt crisis. While Portugal and Spain are being touted as the next bailout candidates, eyes are also increasingly turning towards Belgium. The country's public debt is around 100 per cent of GDP and it has been coasting without a government since elections in June, thanks to ongoing squabbles between Flemish and Walloon parties over the issue of regional reforms. "Just like Portugal, Spain and Italy, Belgium is vulnerable as it's not fiscally sound," says Sony Kapoor, managing director of Re-Define, a financial think-tank. "But economic fundamentals no longer matter at a time like this, they become irrelevant. If there is enough panic about a particular country and it gets talked about, then it is becomes a self-fulfilling prophesy." [...]"  Note: Merkel is delusional.

"'The Euro Game Is Up! Who the hell do you think you are?' - Nigel Farage MEP" [11/25/10] [3:30]  Note:   Nigel Farage is spot on. Related:  "The Vultures Are Circling Over Spain" "London's "success" in getting the Cowen government in Ireland to announce its four-year budget plan today, promptly led to further collapses of Irish, Portuguese, and Spanish bonds. Irish yields soared above 9%; Portuguese above 7%; and Spanish above 5%. Spain's is the more significant of the three, since it is now vox populi on the "financial street" that they are the next country on which the financial vultures will descend, and that there isn't a prayer that there will be enough money available in the European Financial Stability Facility—or anywhere else, for that matter—to bail out Spain's financial system, which is headed by the Inter- Alpha Group's flagship Santander Bank. [...]" "German Source: The Karlsruhe Court Decision Is a Ticking Time Bomb"  "The Karlsruhe court is expected to hold a hearing on the case of the five professors still this year, and alone that fact will have a huge effect on the markets. The case challenges the EU bailout scheme as a violation of the Lisbon Treaty. [...]"  "London Is Screaming in Despair at Their Own Bankruptcy"  "We know exactly what the British are doing," Lyndon LaRouche stated today. "Their response to the Irish crisis reveals that they are much more bankrupt than what they are letting be known. They are desperate; they are screaming in despair." [...]" "Jim Rogers talks about currency wars and Ireland's shaky" Video clip [6:23] 

"Banks Burned By Their Own Fraud: Matt Taibbi On The Gigantic Transnational Fraud Scheme That Caused The Housing Bubble" [11/25/10] [7:35]  Note:  Matt Taibbi on The Rachel Maddow Show, November 24

"China, Russia quit dollar" [11/25/10] "China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday. Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies. "About trade settlement, we have decided to use our own currencies," Putin said at a joint news conference with Wen in St. Petersburg.  [...]" Related: More From the China Daily on this story.

Commentary: "The Beginning Of The Ponzi End: As Of Today, The Biggest Holder Of US Debt Is Ben Bernanke" [11/25/10] "Well, folks, it’s official – mark November 22, 2010 in your calendars – today is the day the Ponzi starts in earnest. With today’s $8.3 billion POMO monetization, the Fed’s official holdings of US Treasury securities now amount to $891.3 billion, which is higher than the second largest holder of US debt: China, which as of September 30 held $884 billion, and Japan, with $864 billion. The purists will claim that the TIC data is as of September 30, and that as the weekly custodial account shows UST buying continues the data is likely not correct. They will be wrong: with the Fed now buying about $30 billion per week, or about $120 billion per month, for the foreseeable future and beyond, it would mean that China would need to buy a comparable amount to be in the standing. It won’t. In other words, the Ponzi operation is now complete, and the Fed’s monetization of US debt has made it not only the largest holder of such debt, but made external funding checks and balances in the guise of indirect auction bidding, irrelevant. For what tends to happen next in comparable case studies, please read the Dying of Money PDF. And congratulations to China for finally not being the one having the most to lose on a DV01 basis on that day when the inevitable surge in interest rates finally happens. That honor is now strictly reserved for America’s taxpayers. [...]"  

"Keiser Report on Silver Revolt: 'Crash JP Morgan' Goes Viral" [11/24/10] [25:42] "This time, Max Keiser and co-host Stacy Herbert look at videos from the "Crash JP Morgan, Buy Silver" viral campaign. They also discuss whether "My father is Li Gang" is any less corrupt than "My Uncle is Sam", as mortgage holders go postal and regulators tell us to "batten down the hatches". In the second half of the show, Max talks to financial journalist Teri Buhl about Ambac's lawsuit against JP Morgan. The case JP Morgan is trying to seal was filed by New York law firm Patterson Belknap Webb & Tyler for Ambac Assurance. To learn more about how JP Morgan is trying to cover up the alleged fraudulent practices of EMC (a wholly owned sub-company) and the Bear Stearns residential mortgage bonds it now responsible for: Look for Nick Verbitsky of Blue Chip Films upcoming documentary film 'Confidence Game'." 

  Commentary: "Bernanke Is Making the Crisis Worse" [11/23/10] "The Fed is a corrupt and powerful institution, and Chairman Bernanke is making the global crisis worse. His new speech given last week in Europe was terribly misguided and will upset markets as the Chinese and Germans won't ignore his challenges. Bernanke’s interpretations of the markets have been wrong since before he was appointed to head the Fed, and his actions are doing nothing but aggravating the situation. In this seminal speech, titled “Rebalancing the Global Recovery,” Bernanke not only defended QE II as the right policy, but also attacked the monetary policy of China, the biggest holder of U.S. debt, an action that must be understood for how misdirected it is. [...]"

"Rothschild Bank and Goldman Sachs On The List Of Bondholders Getting U.S. Billions In Irish Bailout" [11/22/10] Of course.

"Europe’s Dirty Secret: Financial Elite Looting Public Treasuries" [11/20/10] "In a revealing admission concerning the relationship between capitalist governments and international financial interests, the Financial Times on Tuesday wrote of “Europe’s dirty secret.”  The newspaper editorialized against the plan of the European Union, the European Central Bank (ECB) and the International Monetary Fund to loan Ireland tens of billions of euros in order to guarantee in full the investments of international bankers and bondholders in the country’s failing banking system. Under the plan, Ireland will effectively surrender sovereignty over its economic policy to the EU and the IMF and agree to claw back the latest bailout of the global financial elite by imposing a new and even more savage round of attacks on the wages and living standards of the working class. The Financial Times argued that using the €440 billion European Financial Stability Facility (EFSF) to cover the bad debts of the financial elite by propping up zombie banks, while driving the Irish state closer to default, would be “a fatal mistake.” The Times insisted that such a policy was shortsighted and self-defeating, since sovereign defaults would trigger new financial panics and bankruptcies. “It would,” the Times wrote, “keep the Irish people indentured to those who recklessly fund their banks: EFSF funds must, after all, be paid back by taxpayers. It would also give an official EU imprimatur on Europe’s dirty secret: public treasuries will do anything to make private bank creditors whole.” What the Financial Times calls a “dirty secret” is hardly news to those who have followed developments since the collapse of Lehman Brothers 26 months ago. What is remarkable, however, is the bluntness with which this organ of British finance capital acknowledges the existence of a dictatorship of the banks over government policy throughout Europe. Nor is it any different in North America, South America, Africa or Asia. The newspaper admits that a tiny financial elite, which it describes as “reckless,” is looting public treasuries in order to cover its speculative failures, reducing entire populations in the process to the status of “indentured” servants. It is this single-minded pursuit that drives the decisions of governments throughout Europe. [...]"   

"US Mint Reports Soaring November Month-To-Date Silver Coin Sales Surpass 2010 High Following Massive Rush Into Precious Metal" [11/20/10] "Is Max Keiser's attempt to put JP Morgan out of business working following the mother of all silver physical squeezes? The price of silver has been stable in the past few days, but if the US official precious metal seller is to be trusted, this will not last long. According to the US Mint, sales of 1-ounce American Eagle silver coins are headed for the strongest month since at least May, Bloomberg reports. And according to our update, the May total has not only been passed, but the November MTD total is already the highest in 2010. [...]"   

"Report: Feds Preparing Massive Sweep Of Insider Trading In Financial Sector" [11/20/10] "Federal authorities, capping a three-year investigation, are preparing insider-trading charges that could ensnare consultants, investment bankers, hedge-fund and mutual-fund traders and analysts across the nation, according to people familiar with the matter. The criminal and civil probes, which authorities say could eclipse the impact on the financial industry of any previous such investigation, are examining whether multiple insider-trading rings reaped illegal profits totaling tens of millions of dollars, the people say. Some charges could be brought before year-end, they say. The investigations, if they bear fruit, have the potential to expose a culture of pervasive insider trading in U.S. financial markets, including new ways non-public information is passed to traders through experts tied to specific industries or companies, federal authorities say. One focus of the criminal investigation is examining whether nonpublic information was passed along by independent analysts and consultants who work for companies that provide "expert network" services to hedge funds and mutual funds. These companies set up meetings and calls with current and former managers from hundreds of companies for traders seeking an investing edge. [...]"  Note: Let's NOT forget insider trading in Congress. See also  "Congress Protects Insider Trading for Congress " 

"US Bank Derivative Exposure" [11/20/10] " $90 Trillion dollars derivative exposure for JPMorgan ? No wonder the Fed "rescue" of Bear Stearns was via JPM -- it was their own derivative exposure that was at risk.  [...]" Related: "Who's Got the Biggest Derivatives Exposure?"   "For years, I've heard rumors about which banks and Wall Street investment firms hold what amount of derivatives. Well, I've found the official numbers. Specifically, the following table shows the top 25 American commercial bank and trust company holders by notional value of all derivatives: [...]"  Related:   "Georgetown Professor Tells Congress: "Citigroup, Bank Of America, JPMorgan & Wells Fargo Are All Insolvent" [11/19/10] [4:11] Pro-Publica: "Goldman, JPMorgan Lobbyists Top List of Most Visits to Regulators on FinReg" [11/16/10] "Since July, financial regulators have had more than 500 meetings with lobbyists from hundreds of companies seeking to shape the interpretation and enforcement of new financial reform law, according to the Los Angeles Times. Most groups in these meetings—more than 90 percent, according to the Times—are banks, hedge funds, and other big companies that rely on the financial industry. Many seek exemptions to the law's specific provisions that limit risky trading or increase consumer protection against bank fees, according to the Times’ examination of public disclosures from the Federal Reserve, Securities and Exchange Commission, Federal Deposit Insurance Corporation and Commodities Futures Trading Commission. Normally these meetings would be secret, but the agencies—which are responsible for crafting the specifics of hundreds of rules as part of the overhaul—announced in August that they would report meetings with the private sector in order to bring transparency to the process. From the Times: [...]"   

"Dollar to Become World’s ‘Weakest Currency,’ JPMorgan Predicts" [11/20/10] "The dollar may fall below 75 yen next year as it becomes the world’s “weakest currency” due to the Federal Reserve’s monetary-easing program, according to JPMorgan & Chase Co. The U.S. central bank, along with those in Japan and Europe, will keep interest rates at record lows in 2011 as they seek to boost economic growth, said Tohru Sasaki, head of Japanese rates and foreign-exchange research at the second-largest U.S. bank by assets. U.S. policy makers may take additional easing steps following the $600 billion bond-purchase program announced this month depending on inflation and the labor market, he said. “The U.S. has the world’s largest current-account deficit but keeps interest rates at virtually zero,” Sasaki said at a forum in Tokyo yesterday. “The dollar can’t avoid the status as the weakest currency.” [...]"  Note:   JPMorgan & Chase Co is insolvent, and historically a criminal manipulator of the US economy for the better part of the 20th century. 

"Financial Crisis Comm. Can’t Meet Probe Deadline" [11/19/10] "The glorified commission created by Democrats to investigate the nation’s financial crisis can’t get its act together despite a $10 million budget, a sizeable staff and more than a year to thoroughly probe the domestic and global culprits of the collapse. Headed by former California Treasurer Phil Angelides, the 10-member Financial Crisis Inquiry Commission (FCIC) was supposed to issue the findings of its year-long investigation in mid December but this week announced that it can’t meet the deadline. The panel is shooting for sometime in January, claiming that the extra time will ensure that the “ongoing investigation and the documentation thereof is appropriately completed.” It’s not like Americans are on pins and needles awaiting its findings, but as taxpayers they may wonder what the commission has done with nearly $10 million in public funds. Congress initially allocated $8 million then gave it an extra $1.8 million to hire about 40 employees, many of which already worked for the government and remain on their original agency’s payroll.  [...]"   

Legal Case: 'A Modern-Day Case of Grave Robbery' [11/19/10] "In a "modern-day case of grave robbery," International Fund Services of Ireland helped two businessmen steal $60 million from 29 Michigan cemeteries' trust funds by juggling hedge fund records, a cemetery operator claims in Federal Court. [...]"  

"City of Chicago Pension bets not paying off: Public funds fall further behind after making risky investments" [11/19/10] "Trustees of Chicago's failing public pension funds have funneled hundreds of millions of dollars into highly speculative investments that not only have failed to realize outsize returns but also saddled them with underperforming, long-term assets that can't be sold off, a Tribune investigation has found. The investments, which involved buying equity stakes in businesses ranging from fast-food franchises in Mississippi to a Los Angeles grocery chain, were supposed to plug huge holes in pension fund coffers by yielding gains of up to 20 percent a year. But a Tribune analysis of nearly 130 private equity and real estate investments made by four pension funds since 2000 found that nearly half have lost value so far. Of the $1.3 billion invested to date, the pension funds have seen just $60 million in added value on their balance sheets. Had the funds used an equal amount to buy and hold a 30-year U.S. Treasury bond offered in 2000, they would have received $893 million in interest payments to date — and their principal investments would be secure. [...]"   

"2 Madoff workers arrested, charged with conspiracy" [11/19/10] "Two longtime back office employees of Bernard Madoff were arrested Thursday on charges that they helped the disgraced financier dupe investors for decades by making fictitious investments — and that they cashed in on the epic Ponzi scheme themselves. FBI agents arrested Joann Crupi at her house in Westfield, N.J., while Annette Bongiorno was picked up at her home in Boca Raton, Fla. An indictment unsealed in federal court in Manhattan alleges Crupi, 49, and Bongiorno, 62, "'executed' trades in the accounts of (wealthy clients) only on paper ... and that achieved annual rates of return that had been predetermined by Madoff." Prosecutors, citing internal communications, say Bongiorno used a computer program designed to backdate trades and manipulate account statements. "I need the ability to give any settlement date I want," she wrote to a manager in the early 1990s, according to the indictment. [...]"  

"Wall Street quietly seeks to undo new financial rules" [11/18/10]   "The heavy hitters of finance lost big battles earlier this year during the overhaul of financial regulation, but they're working hard to win the war. They're quietly trying to soften, if not kill, some of the more controversial provisions. Lobbyists for Big Finance are working hardest to neutralize the so-called Volcker Rule, which would force big banks to spin off their lucrative proprietary trading operations, in which they invest their own capital in speculative deals. The measure_ named after its proponent, former Federal Reserve Chairman Paul Volcker — seeks to prevent big banks from betting against trades they made on behalf of their customers, a popular practice until the financial crisis exploded in 2008. For example, big investment banks such as Goldman Sachs sold customers overvalued mortgage bonds even as they bet secretly that those bonds would default. Financial lobbyists also are working to soften requirements that Wall Street firms put more "skin in the game" by retaining more mortgage bonds on their books to guard against shoddy lending. They're also trying to undercut the new Consumer Financial Protection Bureau. [...]"  Related:   "Banksters Move to Gut Aspects of Financial Reform Bill"  Kurt Nimmo "Now that the game of political musical chairs is over and Republicans will control the House next year, the banksters are busy at work whittling away at provisions contained in the financial regulation bill pushed through Congress earlier this year by the Democrats. As should be expected, the corporate media is mostly mum, although McClatchy ran with a story. [...] From the very start, the Barry Obama administration was stacked like a crooked card deck with bankster insiders. Out of 14 top cabinet selections, 9 are affiliated with the Bilderberg group, 10 with the Council on Foreign Relations and 5 of are affiliated with the Trilateral Commission. Now that the mid-term election is safely behind us, the elite plan to dump aspects of the so-called financial reform bill — like protecting consumers from loan sharks and shady investment hucksters — and continue their plan to slow motion implode the economy and take blindsided tax payers to the proverbial cleaners."   

"FDIC Conducting About 50 Criminal Investigations Involving Failed Banks" [11/18/10] "The Federal Deposit Insurance Corp. is conducting about 50 criminal investigations of former executives, directors and employees at U.S. banks that have failed since the start of the financial crisis. The agency responsible for dealing with bank failures is stepping up its effort to punish alleged recklessness, fraud and other criminal behavior, as U.S. officials did in the wake of the savings-and-loan crisis a generation ago. More than 300 banks and savings institutions have failed since the start of 2008, but just a few have led to criminal charges being filed against bank officials. [...] 

"US In Terribly Dangerous Territory," Bond Market May Be Headed For "Implosion" [11/18/10] "Warning of the risk of an "implosion" in the bond market, former Treasury Secretary Robert Rubin says the soaring federal budget deficit and the Fed's quantitative easing are putting the U.S. in "terribly dangerous territory." Speaking at an event at The Pierre Hotel in New York City honoring Sen. Kent Conrad (D-N.D.), Rubin joined the growing number of current and former officials (foreign and domestic) to criticize QE2. The Fed's plan to buy $600 billion of Treasuries "has a lot of risk," he said, calling the international reaction "horrendous."  [...]"  

"Bernanke's 'Cheap Money' Stimulus Spurs Corporate Investment Outside U.S." [11/18/10] "Southern Copper Corp., a Phoenix- based mining company that boasts some of the industry’s largest copper reserves, plans to invest $800 million this year in projects such as a new smelter and a more efficient natural-gas furnace. Such spending sounds like just what the Federal Reserve had in mind in 2008 when it cut interest rates to near zero and started buying $1.7 trillion in securities to spur job growth. Yet Southern Copper, which raised $1.5 billion in an April debt offering, will use that money at its mines in Mexico and Peru, not the U.S., said Juan Rebolledo, spokesman for parent Grupo Mexico SAB de CV of Mexico City. "

Commentary: 'Quantitative Easing': The Hidden Government Subsidy for Banks  Matt Taibbi, Rolling Stone [11/16/10] "QE is designed to buy Treasuries and other assets, but the Fed does not simply go out and buy Treasuries itself; it does it through its primary dealers, who include of course banks like Goldman, Sachs. The Fed all but announces when it’s going to be doing this buying and in what quantity, which allows the banks to buy up this stuff at lower prices ahead of time and then sell it to the Fed at inflated cost. Even forgetting about the obvious insider trading aspect to all of this, the official middleman status of the banks is a direct government subsidy and it is little remarked upon, even by the Tea Party crowd, which is otherwise so opposed to “welfare.” But these sorts of subsidies exist all throughout the financial services industry. You want to take out a mortgage or a credit card; you obviously can’t get your credit from the government at 0% interest. What you do instead is you get a mortgage from a private bank at 4.7% or 5%, and that bank in turn has borrowed from the Fed at 0%. This would almost make sense if indeed these banks were legitimately providing a service for that 5% cut, i.e. if they were carefully and judiciously weighing the credit risk of applicants. But if anything these banks have been even more irresponsible (more irresponsible by far, actually) with their money than the masses of people who are now in trouble with their credit cards, mortgages, student loans, etc. They not only don’t deserve this subsidy any more than ordinary people do, they’re actually the worst possible destination for an appropriation of emergency funding, which is what this Fed money is supposed to be. [...]"  Note: Video clip [6:48] included. 

"Euro under siege as now Portugal hits panic button" [11/16/10] "The euro is facing an unprecedented crisis after another country indicated on Monday night that it was at a "high risk" of requiring an international bail-out. Portugal became the latest European nation to admit it was on the brink of seeking help from Brussels after Ireland confirmed it had begun preliminary talks over its debt problems. Greece also disclosed that its economic problems are even worse than previously thought. Angela Merkel, the German Chancellor, raised the spectre of the euro collapsing as she warned: "If the euro fails, then Europe fails."  [...]"   

"Bankers face grilling from lawmakers on foreclosures" [11/16/10] "Bank executives are expecting to get an earful from lawmakers Tuesday when they defend themselves in front of the Senate Banking Committee against allegations they mishandled thousands of home foreclosures. The banks’ likely defense -- that the volume of foreclosures was so great that they were simply overwhelmed -- is not likely to placate politicians looking to score points with struggling homeowners. While the sputtering economic recovery has left far more people out of work than was expected, greatly hampering any recovery in the real estate market, bankers are nonetheless expected to concede that the foreclosure system is broken, and that they are working on ways to repair it. Part of the problem, the bankers will say, stems from the demands of investors -- including Fannie Mae and Freddie Mac. [...]"   

 Commentary:  "Will Europe Fall? Ireland, Portugal, Greece Contagion Spreads" [11/16/10] "Breaking headlines out of Europe indicate that EU may very well be on the brink. These days, headlines move markets and capital flows. If the problems in Europe are perceived to be as bad as things actually are, we may see the next leg in the crisis unfold in coming days and weeks, as we discussed in Is a Monster Reversal In Stocks, Commodities, and the US Dollar in the Works? After repeated denials from Ireland about the necessity for an EU bailout, mounting pressure from the rest of the Union may finally force the Irish to buckle. [...]"   

"Irish Finance Minister: It's the Banks That Are Bankrupt, Not the Irish State" [11/16/10] "It is not the Irish government which is bankrupt but the banks. The Irish Independent, quoting government officials reports that Finance Minister Brian Lenihan is considering asking for money for Irish banks from the European Financial Stability Facility at the meeting of Euroland finance ministers in Brussels tomorrow. It is clear that this is a counter-move by Dublin to prevent the EU from putting the entire burden for the bailout of the Irish banking system on the backs of the Irish people. "There is no question about Irish sovereign debt — the question remains about the funding of the banks. The banks are having trouble getting money," an unnamed government source told the Irish Independent. "We have to find out — could you go to the fund and get money for the banking sector? The Irish state doesn't need the funds. There are no negotiations. People haven't separated the two issues — the state and the banks. What is the problem? The problem is about the banks, rather than the sovereign (funds)." The daily writes that there has been an exodus of corporate deposits from Irish banks, while the banks are fully dependent on the European Central Bank for credit. "What are the implications of that? It's just not straightforward," said the source. "Lenihan at ECOFIN (this week's EU finance ministers' meeting) presents an opportunity to discuss it. It would be the banks that would have to pay it back — not the state."  [...]"  

"Ireland Denies €60 Billion Bailout Talk As EU Puts On Pressure" [11/16/10] The Irish Government has been forced to make a second denial in two days that it is preparing to go to the EU for a multi-billion euro bail-out. " [...]"  Note:  See below for back story.

"Ireland Goes Bust, Irish Bank Run" [11/15/10] "There was a bank run in Ireland on Wednesday. LCH Clearnet, a London based clearinghouse, surprised the markets by announcing it would increase margin requirements on Irish debt by 15 percent. That's all it took to send investors fleeing for the exits. Yields on Irish bonds spiked sharply as banks tried to close positions or raise the capital needed to meet the new requirements. The Irish 10-year bond soared to 8.9 percent by day's end, more than 6 percentage points higher than "risk free" German sovereign debt. The ECB will have to intervene. Ireland is on its way to default. This is what a 21st century bank run looks like. Terms suddenly change in the repo market, where banks get their funding, and the whole system begins to teeter. It's a structural problem in the so-called shadow banking system for which there's no remedy. Conventional banks exchange bonds with shadow banks for short-term loans agreeing to repurchase (repo) them at a later date. But when investors get nervous about the solvency of the bank, the collateral gets a haircut which makes it more expensive to fund operations. That sends bond yields skyrocketing increasing the liklihood of default. In this case, the debt-overhang from a burst development bubble is bearing down on the Irish government threatening to bankrupt the country. Ireland is in dire straights. Here's an excerpt from an article in this week's Irish Times which sums it up: [...]"  Related: "Silent Run on the Bank of Ireland by Corporate Depositors" [11/14/10] "There has been a silent run by corporate depositors at the Bank of Ireland which is now Ireland's biggest lender and is 36% owned by the government. The bank announced that in August and September there were withdrawals by corporate depositors. Citing banking sources, the Irish Times suggests that the withdrawal could have been as much as EU10 billion. [...]"   "Ireland's Fate Tied to Doomed Banks" |  "EU Leaders Voice "Support" for Ireland To Save Inter-Alpha Group"  "On the sidelines of the G20 summit, the leaders of Germany France, Italy, Spain, and Great Britain (which is not a Eurozone country) issued a statement aimed at calming fears of Irish default, stating that "any new mechanism would only come into effect after mid-2013 with no impact whatsoever on the current arrangements."  "Ireland's young flee abroad as economic meltdown looms"  "Many young people are seeking to emigrate rather than face a life of hardship as the republic lurches towards financial collapse [...]"  

Commentary: "2011 Predictions: Economic, Financial and Geopolitical Turmoil" [11/15/10] "Between November 1 and December 15 we like to post our next years’ predictions for those markets and social situations affecting our trading and investing ideas. Before we continue with our predictions it is important to review this email from our top advisor. He has been consistently correct in his forecasts and has brought me a great deal of insight regarding things I would have never considered. Consider this a fundamental back-drop covering the next several years. After this note, I will elaborate further on my forecasts and suggest some prospective dates for our trading and investing. Our Best Advisor Says It’s All Over. ’m not a pessimist but our top and best advisor who seems to be always correct offers the following. If he is correct, and I suspect he is, we have a long slow Japan-style slog in the economic mud with a major system breakdown, like Russia’s bust-up some years ago. I suspect somewhere along the trail in this movie, the USA Sheeple go to pitchforks and torches. I sure hope not but it almost seems inevitable. What a shame that a few Marxists can do so much permanent damage to my beloved America. All political parties are guilty. [...]"    

Analysis: "Significant Stock Sell-off Within 12 Months" [11/14/10] "Gary Shilling, who predicted the U.S. housing collapse, says the stock market is overvalued and foresees a “significant” sell-off within a year as the Federal Reserve fails to stimulate economic growth. [...]"  

"US asks China to raise Yuan by January" [11/14/10] "The United States has called on China to hasten its efforts toward reforming its currency exchange rate against the dollar by January of next year. US President Barack Obama, who has repeatedly said the yuan's undervalued currency has hurt the US economy, urged Chinese officials to let the yuan rise against the dollar by the time Chinese President Hu Jintao visits Washington in January, Reuters reported on Saturday. "President Hu Jintao's visit in January would be an important time to look at exactly what the quantum of progress has been on this," said United States' National Security Advisor Tom Donilan [...]"  

"G20 summit fails to resolve global trade, currency conflicts" [11/14/10] "The G20 summit of leading economies held in Seoul, South Korea concluded Friday without any agreement on policies to bridge differences over global currency and trade issues. [...]"  Related: "Obama’s economic view is rejected on world stage" 

Commentary: "Herman van Rompuy: The man who wants to control finances" [11/14/10]  "Herman van Rompuy, the president of Europe, hasn’t enjoyed the kindest press. In Britain at least, the “richly comic” “blustering Belgian”, a “garden gnome” and “dwarf” “straight out of Gilbert and Sullivan” has been treated as a sort of joke created largely for the benefit of tabloid headline writers.  Mr van Rompuy may never come to match, say, Vince Cable in the glamour stakes – but people who knew him in his previous job always warned that the “Mr Nobody” gibes were misplaced. As Belgian prime minister, Mr van Rompuy helped to bring together his notoriously divided country, and sharply reduced its budget deficit. Now, he has similar steely ambitions to unite and discipline Europe. Last week, in Berlin, Mr van Rompuy proclaimed an EU leader’s strongest message of federalism yet. He said that after the financial crisis, “the national and the European interest can no longer be separated: they coincide… today, we have to act on [that] fact… in every [EU] member state, there are people who believe their country can survive alone in the globalised world. It is more than an illusion – it is a lie.” [...]"   

On the Edge with Max Keiser – Global Financial System [11/14/10] [8:52] Part 2 [7:10]| Part 3 [7:10] " In this edition of Press TV’s ‘On the Edge with Max Keiser’, Max has an interview with Chris Martenson, who does a lot of blogging on finance and economics at his site chrismartenson.com. He is a scientist by training and was a VP for a fortune 300 company." 

Commentary: "Get Ready for the Great MERS Whitewash Bill" [11/14/10] "When Congress comes back into session next week, it may consider measures intended to bolster the legal status of a controversial bank owned electronic mortgage registration system that contains three out of every five mortgages in the country. The system is known as MERS, the acronym for a private company called Mortgage Electronic Registry Systems. Set up by banks in the 1997, MERS is a system for tracking ownership of home loans as they move from mortgage originator through the financial pipeline to the trusts set up when mortgage securities are sold. The system has come under scrutiny by critics who charge MERS with facilitating slipshod practices. Recently, lawyers have filed lawsuits claiming that banks owe states billions of dollars for mortgage recording fees they avoided by using MERS. If courts rule against MERS, the damage could be catastrophic. Here’s how the AP tallies up the potential damage:  [...]"    Related: Double Class Action Lawsuits Filed Against MERS | "Courts Helping Banks Screw Over Homeowners" Matt Taibbi, Rolling Stone [11/10/10] "It's early on a sunny Tuesday morning when I arrive at the chambers of Judge Soud, one of four rotating judges who preside over the local rocket docket. These special foreclosure courts were established in July of this year, after the state of Florida budgeted $9.6 million to create a new court with a specific mandate to clear 62 percent of the foreclosure cases that were clogging up the system. Rather than forcing active judges to hear thousands of individual cases, this strategy relies on retired judges who take turns churning through dozens of cases every morning, with little time to pay much attention to the particulars. What passes for a foreclosure court in Jacksonville is actually a small conference room at the end of a hall on the fifth floor of the drab brick Duval County Courthouse. The space would just about fit a fridge and a pingpong table. At the head of a modest conference table this morning sits Judge Soud, a small and fussy-looking man who reminds me vaguely of the actor Ben Gazzara. [...]"  Note: Retired judges are rushing through complex cases to speed foreclosures in Florida. 

"SEC Plans New Rules for Securities Based Swaps" [11/14/10] " Traders engaging in securities based swaps will be held liable for any activity that alters the value of the underlying securities in the swap over the life of the contract, according to rules proposed by the Securities Exchange Commission. [...]" 

"Fed Governor Issues Fresh Warning on Mortgage Put-Back Risks For The Biggest Banks" [11/14/10] "What is interesting about this story is that Tarullo teaches within the same Law faculty (Georgetown) as Adam Levitin, who has spent the last month detailing the nightmare putback scenario for Bank of America and others.  [...]"   

LaRouche: "Simpson-Bowles Plan Is British Inter-Alpha Banks' Treason Against the U.S." [11/14/10] "It has been obvious for months that this rightly nicknamed "Catfood Commission" was not its 18 members; and now, that this is not a power play by these little co-chairmen, Bowles and Simpson. Rather, it has been a clear power play by British puppet NerObama and Wall Street billionaire insider Peter Peterson, whose foundations paid the commission's senior staff members, funded groups within the commission, provided its "experts" and "expert reports," and paid for publicizing its treasonous activities. [...]" 

"Bank of America Is in Deep Trouble, and There May Be Financial Disaster on the Horizon" [11/14/10] "“The problem for anyone trying to analyze Bank of America’s $2.3 trillion balance sheet,” wrote Bloomberg columnist Jonathan Weil, “is that it’s largely impenetrable.” Nobody really knows the true values of the assets these companies are holding, which has been the case ever since the collapse. But according to Weil, some of BofA’s financial statements “are so delusional that they invite laughter.”  Weil points to the firm’s accounting of its purchase of Countrywide Financial -- the criminal enterprise at the center of the sub-prime securitization market. Bank of America, Weil notes, hasn’t written off Countrywide’s entire value. “In its latest quarterly report with the SEC,” he wrote, “Bank of America said it had determined the asset wasn’t impaired. It might as well be telling the public not to believe any of the numbers on its financial statements.” With investors valuing BofA at half the worth that the bank claims, it’s one titan of Wall Street that may be on the brink of collapse. But it’s not alone. “Everybody was doing this, this is not just something that Countrywide and Bank of America were doing," legendary investor Jim Rogers told CNBC. As a result, the banks’ balance sheets are "full of rotten stuff" that “is going to be a huge mess for a long time to come.” [...]"   Related: Bank of America Edges Closer to Tipping Point: Jonathan Weil [11/06/10]  

Keiser Report №94: Markets! Finance! Scandal! [11/13/10] [26:40] "This time Max Keiser and co-host, Stacy Herbert, look at the scandals of Americas economic Suez and neutering Iran. In the second half of the show Max talks to rare earths analyst, Kevin Kerr, about the state of this market controlled by China. [...]"  

"Bizarre North Korean Plan To Attack G20 Summit With 'Chemical Weapon Balloons'" [11/12/10] "A bizarre plot by North Korea to attack the G20 summit using balloons filled with biological or chemical weapons emerged last night. The claim that ageing tyrant Kim Jong-Il will attempt to disrupt the gathering – attended by David Cameron and other world leaders – has been taken seriously by Western diplomats. U.S. Secretary of State Hillary Clinton has asked China, North Korea’s chief ally, to rein in Kim. And security is now at red alert for the conference in the South Korean capital Seoul. Kim Jong-Un, Kim’s third son and expected successor, is thought to have been ordered to find ways to overshadow the meeting. His father’s secretive regime has acted aggressively in the past at times of internal change, external tension or when the rival South is the focus of world attention. [...]"   

G20 Summit Opens To Array Of Problems [11/11/10] "Leaders of the world's top 20 economies look to be in for a difficult time at their summit that opened in South Korea today. [...]"  "Pessimism pervades as G20 leaders show sharp split"   "A strong sense of pessimism shrouded the start of an economic summit of rich and emerging economies Thursday, with President Barack Obama and fellow world leaders arriving in Seoul sharply divided over currency and trade policies. The Group of 20 summit, held for the first time in Asia, has become the centerpiece of international efforts to revive the global economy and prevent future financial meltdowns. Hopes had been high that the Group of 20 – encompassing rich nations such as Germany and the U.S. as well as growing giants such as China and Brazil – could be the world forum for hashing out an economic way forward from financial crisis. But agreement appeared elusive as the summit began, divided between those such as United States that want to get China to allow its currency rise and those irate over U.S. Federal Reserve plans to pump $600 billion of new money into the sluggish American economy, effectively devaluing the dollar. [...] 

"FDIC Targets Executives Of Failed Banks" [11/11/10] "The Federal Deposit Insurance Corp. said it put dozens of former U.S. bank officials on notice that bank failures under their watch now required some payback. [...]" 

German Finance Minister: ‘The U.S. Lived on Borrowed Money for Too Long’ [11/11/10] "Schäuble: The German export successes are not the result of some sort of currency manipulation, but of the increased competitiveness of companies. The American growth model, on the other hand, is in a deep crisis. The United States lived on borrowed money for too long, inflating its financial sector unnecessarily and neglecting its small and mid-sized industrial companies. There are many reasons for America’s problems, but they don’t include German export surpluses. [...]"   

"More Looting of Taxpayers: Wall Street Collects $4 Billion as Swaps Backfire" [11/11/10] "Wall Street banks and insurers peddled financial derivatives known as interest-rate swaps to governments and nonprofits that bet they could lower the cost of borrowing. There were as much as $500 billion of the deals done in the $2.8 trillion municipal bond market before the credit crisis, according to a report by Randall Dodd, a senior researcher on the Financial Crisis Inquiry Commission, published by the International Monetary Fund in June. Borrowers from New York to California are now paying to get out of agreements. Altogether, they have made more than $4 billion of termination payments to firms including New York- based Citigroup Inc., New York-based JPMorgan Chase & Co. and Charlotte, North Carolina-based Bank of America Corp. since the beginning of 2008, according to a review of hundreds of bond documents and credit-rating reports by Bloomberg News. [...]"   

Keiser Report №93: Markets! Finance! Scandal! [11/11/10] [26:44] "This week Max Keiser and co-host Stacy Herbert look at the scandals of shameless Britain and Wall Street’s cash cow. In the second half of the show, Max talks to David Morgan about the silver market.  [...]"   

Greenspan Admits To Rampant FRAUD & Illegal Activity In U.S. Banking System While On Jekyll Island Stage With Bernanke [11/10/10] [0:50]   Related:  Berrnanke Under Fire - Fed Fight over QE2 at Jekyll Island   [1:51] 

China's Lead Credit Rating Agency Downgrades U.S., Second Time This Year [11/10/10] "China’s Dagong Global Credit Rating Co. reduced its credit rating for the U.S. to A+ from AA, citing a deteriorating intent and ability to repay debt obligations after the Federal Reserve announced more monetary easing. The credit outlook for the U.S. is “negative,” as the Fed’s plan to buy government debt will erode the value of the dollar and “entirely encroaches” on the interests of creditors, analysts at Dagong, one of China’s three largest ratings companies, said in a statement. The U.S. is rated Aaa and AAA by Moody’s Investors Service and Standard Poor’s Corp., the highest credit ratings of the New York-based companies. The downgrade came before a meeting of leaders of the Group of 20 nations this week in Seoul and as the U.S. steps up pressure for China to let the yuan strengthen to help reduce the U.S. trade deficit. China countered the criticism by saying U.S. economic policies threaten the stability of developing nations. [...]"  

"Bush says "clear conscience" on financial crisis" [11/10/10] "Former President George W. Bush said on Wednesday he has a "clear conscience" about recognizing the problems that led to the financial crisis [...]"    Related:  "The Life and Times of Bush the Clueless" 

Sovereign Debt Madness - $10.2 Trillion in Global Borrowing Expected In 2011 [11/10/10] "Next year, fifteen major developed-country governments, including the U.S., Japan, the U.K., Spain and Greece, will have to raise some $10.2 trillion to repay maturing bonds and finance their budget deficits, according to estimates from the International Monetary Fund. That’s up 7% from this year, and equals 27% of their combined annual economic output. [...]"   

"China says G20 should monitor US Fed" [11/09/10] "China's state media has issued a new broadside at the US Federal Reserve's move to prime the US economy, suggesting the Group of 20 should monitor policy shifts by the US central bank. The Xinhua news agency said in a commentary the Fed was "risking the global recovery by following its own track for economic revival" by spending an extra $US600 billion ($A593.65 billion) buying Treasury bonds " to stimulate the US economy". [...]"  Note:  China wants the G20 to have the authority to "monitor" the Fed. Since the Fed has battled an audit by our own Congress it's doubtful it will happen, but it will be interesting to see if they concede any ground to accommodate global monetary cooperation.

"Obama returns fire after China slams Fed's move" [11/09/10] "Obama defended the Federal Reserve's policy of printing dollars on Monday after China and Russia stepped up criticism ahead of this week's Group of 20 meeting. The G20 summit has been pitched as a chance for leaders of the countries that account for 85 percent of world output to prevent a currency row escalating into a rush to protectionism that could imperil the global recovery. But there is little sign of consensus. The summit has been overshadowed by disagreements over the U.S. Federal Reserve's quantitative easing (QE) policy under which it will print money to buy $600 billion of government bonds. The move could depress the dollar and cause a destabilizing flow of money into emerging economies. [...]"   

Commentary:  "Gold ETF Warning, Tungsten Filled Fake Gold Bars" [11/08/10] "... And here’s what the Chinese allegedly uncovered:  Roughly 15 years ago – during the Clinton Administration [think Robert Rubin, Sir Alan Greenspan and Lawrence Summers] – between 1.3 and 1.5 million 400 oz tungsten blanks were allegedly manufactured by a very high-end, sophisticated refiner in the USA [more than 16 Thousand metric tonnes]. Subsequently, 640,000 of these tungsten blanks received their gold plating and WERE shipped to Ft. Knox and remain there to this day. I know folks who have copies of the original shipping docs with dates and exact weights of “tungsten” bars shipped to Ft. Knox. The balance of this 1.3 million – 1.5 million 400 oz tungsten cache was also plated and then allegedly “sold” into the international market. Apparently, the global market is literally “stuffed full of 400 oz salted bars”. [...]"   

World Bank chief calls for gold to anchor Forex [11/08/10] "World Bank president Robert Zoellick has called on bickering G20 nations to bring gold back into the global monetary system as an anchor to guide currency movements. Ahead of a G20 summit this week in Seoul, Zoellick wrote in Monday's Financial Times that an updated gold standard could contribute to retooling the world economy at a time of tensions over currencies and US monetary policy. Zoellick said the world needed a new regime to succeed what he called the "Bretton Woods II" system of floating currencies, which has been in place since the fixed-rate currency system linked to gold broke down in 1971. "Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today," Zoellick wrote in a commentary for the FT. [...]"   Related:  World Bank signals that it and its cohorts control world's gold 

Morgan Stanley financial adviser escapes felony charges for hit-and-run 'because it could jeopardise his job' [11/08/10] "A financial manager for wealthy clients will not face charges for a hit-and-run because it could jeopardise his job, it has been revealed. Martin Joel Erzinger, 52, was set to face felony charges for running over a doctor who he hit from behind in his 2010 Mercedes Benz, and then speeding off. But now he will simply face two misdemeanour traffic charges from the July 3 incident in Eagle, Colorado. His victim, Dr Steven Milo, 34, is meanwhile facing 'a lifetime of pain' from his injuries. But prosecutors claim the decision is theirs to make. 'Justice in this case includes restitution and the ability to pay it,' said District Attorney Mark Hurlbert. [...]"

Legal Case: Lawsuits: Banks foreclosed after deciding payments too small [11/08/10] "Grocery store owners William and Esperanza Casco were making enough money to stay current on their mortgage, but when JPMorgan Chase & Co. offered a plan that reduced their payments, they figured they could use the extra cash and signed up. The Cascos say they never missed a subsequent payment, so they were horrified when [...]"  Note:  So the banks agree to rules and then change the rules in the middle of the game ...

Russia to `Insist' U.S. Coordinate With G-20 Members on Monetary Measures [11/08/10] "Russian President Dmitry Medvedev will “insist” on global coordination of any so-called quantitative easing measures by government when he meets with counterparts from the Group of 20 nations this week. [...]"  

Currency issues will come first at G20 [11/08/10] "Currency issues will lead off the Group of 20 summit in Seoul, the summit's organizers said Sunday. Related:  G20 tensions rise over the future of the global economy [11/07/10]  "The daisy chains, kaftans and sweet haze of pot may have been missing, but last year's G20 summit in Pittsburgh was the closest to a love-in that the world's leaders have come. In the eye of the financial crisis, with recession gripping most major economies, heads of state joined hands and agreed to promote "strong, sustainable and balanced growth". Those dangerous, destabilising global imbalances would be addressed, they pledged. "Deficit" countries, such as the UK and US, would save and export more. "Surplus" countries, such as China and Germany, would export less and get their consumers spending. Every country would do their bit, pull together, and all the bountiful progress would be chronicled the following year at the G20 summit in Seoul. Unfortunately, relationships formed under intense circumstances rarely last. This week, with most countries a year out of recession, G20 leaders reconvene in Seoul to discuss their efforts. Twelve months on, nationalism has replaced globalism. Peace and love have given way to currency wars. The imbalances are as entrenched as ever. And, most frightening, the battle drums are beating for protectionism and trade barriers. At last month's International Monetary Fund (IMF) meeting, the mood was sombre. Dominique Strauss-Kahn, head of the IMF, spoke of "a new kind of economic co-operation at the global level which never had existed in the past [that] was very strong [at the G20] in London, very strong in Pittsburgh. I think it is fair to say that the momentum is decreasing." The European Central Bank president, Jean-Claude Trichet, also warned that while "we have a consensus on imbalances, the problem is implementation – as always". The US last week stoked the simmering tensions by unveiling plans for another $600bn (£370bn) of quantitative easing (QE), on top of the $1.7 trillion already in place. The dollar crashed in what is being seen as the latest round of competitive devaluations, as nations seek to debase their currencies to help domestic industry. Brazil retaliated by buying dollars. Xia Bin, a member of the Chinese central bank's monetary policy committee, branded the US stimulus plan "abusive" and warned it could spark a new global downturn. German finance minister Wolfgang Schäuble accused the US of breaking the promise made at June's G20 in Toronto, saying he would "speak critically about this at the G20 summit in South Korea". [...]"   

Jesse Ventura's "Conspiracy Theory": "Wall Street" [11/07/10] Links Fixed "Premiere Fri, November 5 at 10P Jesse goes inside the secret billionaire’s boy’s club to find out what caused the financial meltdown and how the group allegedly continues to manipulate and control the stock market and oil, gold and silver prices. From Wall Street to Washington, the governor barges in on the rich and powerful.."  [9:33] Part 2 [8:59]| Part 3 [11:11]| Part 4 [14:28] 

"Fed Action Unleashes Worldwide Hyperinflationary Chaos" [11/07/10] "It's exactly what Lyndon LaRouche warned would happen.  The massive and volatile speculative capital flows that have been underway for some months, increased dramatically in the 48 hours following the Fed's Nov. 3 announcement of additional "quantitative easing." With the dollar being intentionally debased on British orders, huge sums are moving into the carry trades, stock markets, and commodities of all sorts. The price of oil broke through the $87 a barrel barrier and its price is now poised to increase dramatically. Other commodities, including copper, sugar, soy, and cotton, have also seen dramatic price increases.  [...]"  

"European Central Bank (ECB) Rejects Request for Disclosure of Greek Swap Files, Citing This ‘Would Undermine The Public Confidence’" [11/06/10] "The European Central Bank refused to disclose internal documents showing how Greece used derivatives to hide its government debt because of the “acute” risk of roiling markets, President Jean-Claude Trichet said.  The ECB turned down a request and an appeal by Bloomberg News to release two briefing documents officials drafted for the central bank’s six-member Executive Board in Frankfurt this year. The notes outline how Greece used the swaps to hide its borrowings, according to a March 3 note attached to the papers and obtained by Bloomberg News. “The information contained in the two documents would undermine the public confidence as regards the effective conduct of economic policy,” Trichet wrote in an Oct. 21 letter in which he rejected the appeal. Disclosure “bears, in the current very vulnerable market environment, the substantial and acute risk of adding to volatility and instability.” The ECB is withholding the information six months after the European Union and International Monetary Fund led a 110 billion-euro bailout ($154 billion) for Greece. The government didn’t originally disclose the swaps, which were designed to help it comply with the deficit and debt rules it agreed to meet when it joined the euro in 2001. Eurostat, the EU’s statistics agency, is still trying to work out how Greece hid the deficit. The Greek swaps fueled a financial crisis that threatened the breakup of the region’s currency. The government now says the swaps, some of which were arranged by Goldman Sachs Group Inc., may have caused “long-term damage” for taxpayers.  [...]"   

Commentary: Bank of America Edges Closer to Tipping Point: Jonathan Weil [11/06/10] "It was only last April that Bank of America Corp. was making fools out of the doomsayers who had called for its nationalization a year earlier. Taxpayers had gotten their bailout cash back. Investors who bought its shares at the bottom were making a killing. Government leaders lauded the company’s rescues, both of them, as a great success. Now the bank may be on the verge of trouble again. Its stock has fallen 41 percent since April 15. Mortgage- bond investors are demanding untold billions of dollars in refunds. The foreclosure fiasco is metastasizing. A member of the Troubled Asset Relief Program’s oversight panel, AFL-CIO attorney Damon Silvers, openly worried at a hearing last week about the risk that Bank of America might need another bailout. A few more months like the last one, and we may be wishing Bank of America had never returned its $45 billion of TARP money.  [...]"   

What Will Increase In U.S. Money Supply Mean For Rest Of The World [11/06/10] "The U.S. Federal Reserve announced on November 3 that it would pump $75 billion of newly printed money into the economy each month between now and June next year, a process it calls quantitative easing. That is a total of $600 billion. The Federal Reserve believes that making so much new money available so quickly will force banks to lend money at even lower than the nearly zero percent rates today. The aim is to keep interest rates sharply down for many months ahead so consumers will start borrowing and buying again and business will start expanding and hiring. [...]"    

Global Research: "Financial Fraud in Germany - The Wall Street Model Backfires: Deutsche Bank and the US Mortgage Scam" [11/06/10] "The earlier filing of fraud charges against Wall Street banking titan Goldman Sachs by the US Government Securities and Exchange Commission (SEC) was only the tip of a huge fraud iceberg. Now a US mortgage insurer has charged one of the most aggressive banks involved in the US subprime mortgage scam of fraud. The bank is none other than Deutsche Bank. This case is also likely to be just the “tip of a very big iceberg.” [...]"    Related: "Ackermann's Deutsche Bank Follies: Chickens Come Home to Roost" [11/04/10] "The earlier filing of fraud charges against Wall Street banking titan Goldman Sachs by the US Government Securities and Exchange Commission (SEC) was only the tip of a huge fraud iceberg. Now a US mortgage insurer has charged one of the most aggressive banks involved in the US subprime mortgage scam of fraud. The bank is none other than Deutsche Bank. This case is also likely to be just the “tip of a very big iceberg.” [...]  

Jon Stewart’s Older Brother, Larry Leibowitz, Is ‘COO’ Of The NYSE [11/06/10] "Not as many people are aware of it as should be, but Jon Stewart’s older brother, Larry Leibowitz, is the Chief Operating Officer (COO) of the New York Stock Exchange (NYSE). Mr. Leibowitz was appointed chief operating officer in the first quarter of 2010. In this capacity, he (Leibowitz) is responsible for all the operations management, global cash execution and global listings. He previously served as group executive vice president and head of U.S. Execution and Global Technology from 2007 until 2009. He joined NYSE Euronext in 2007, having served as managing director and chief operating officer, Americas Equities, at UBS Investment Bank. Prior to joining UBS in 2004, Mr. Leibowitz held the position of executive vice president, co-head of Schwab Capital Markets. He currently serves on the board of National Stock Exchange of India and has also served on many industry boards and committees, among them the Market Structure Committee of the former Securities Industry Association (now SIFMA). As stated above, Leibowitz was also formerly managing director and chief operating officer at UBS, “the leading global wealth manager, a leading global investment banking and securities firm, and one of the largest global asset managers”, as they describe themselves. A rather influential man, indeed. [...]"  Related:  Geithner Visited Jon Stewart Last April to Talk About Economy, Not Comedy  

Commentary: "The United States of Austerity" [11/05/10] "The global economic and financial system was founded in 1945 -- over 60 years ago -- when the United States was made the solvent heart of the global financial system. This meant that there was an absolute necessity that the US economy never suffer a lasting recession. And, as long as the banks were well regulated -- as they were after 1933 -- and the financiers never gained gambling control of the nation's treasure again -- there would be no lasting recession. No Depression 2.0. Indeed, at that time, the Dollar became the world's reserve currency -- the money that all nations hold to facilitate international trade. This is the privileged economic reality that we all grew up in. Unfortunately, by the end of the 20th century, the financiers were able to seize the nation's treasure, gamble it away, and infect the global economy with fiscal gangrene. The world is recovering, but the future holds severe consequences for the United States, that have yet to be played out. Beginning in January 2011, we will experience astonishing lifestyle changes as our economic leadership in the world comes to an end. [...] Can the world's Central Bankers impose severe austerity on the American People? Since the beginning of 2010, Western leaders have maintained a grand illusion of economic recovery as thousands of billions of Dollars have been swallowed up by the banks and by economic stimulation plans with no lasting effect. At least, that's the way the world's central bankers see the economic landscape in the US. In truth, the West, and in particular the United States, never really came out of recession. The economic stability recorded since summer 2009 was due to the short-lived consequences of a massive injection of liquidity into a system, which had essentially become insolvent -- just like the US consumer. It is clear that the US again wants to try another massive stimulus, but nations no longer seem willing to loan us the money to do so. At the recent meeting of world central bankers at Jackson Hole, Wyoming, the Chairman of the Fed Ben Bernanke sent a blunt message to the group: "Yes, our policies to revive the US economy have failed, but EITHER you continues to fund US deficits at a loss and hope that at some point the bet will pay off OR the United States will monetize its debt and turn all the Dollars and US Treasury Bonds held by the world into funny money." The United States now feels forced to introduce these threats into the global discourse because reality doesn't look so good to our foreign lenders, who provide the cash that keeps this nation running:"     Video clip included.  

RSA Animate - Crises of Capitalism [11/05/10] [11:10]  "In this RSA Animate, renowned academic David Harvey asks if it is time to look beyond capitalism towards a new social order that would allow us to live within a system that really could be responsible, just, and humane? [...]"  

Fed move irks emerging nations [11/04/10] " Finance ministers from Brazil, South Korea and Thailand said they were considering measures to counter the latest U.S. monetary policy decision. The U.S. Federal Reserve said Wednesday it would restart a Treasury bond purchasing program and buy $75 billion in bonds per month through June for a spending total of $600 billion. But some emerging nations fear the move could add to the flood of foreign funds headed in their direction, The New York Times reported Thursday.[...]"  Note: The Fed is not telling people it will be sending all this money OUTSIDE the country ... it's advertised as 'helping the US economy', a lie.

"CBS News: Fed's Debt Buyback Will Cause Food Prices To Rise" [11/04/10] [2:18]  "Maggie Rodriguez talks to Rebecca Jarvis about the potential consequences of the new Federal Reserve plan to buy an extra 600 billion dollars worth of treasury bonds in a move to cut long-term interest rates. [...]" 

Commentary: "Federal Reserve Risks Ruining Reserve Currency" [11/04/10] "The Federal Reserve is expected to announce today whether or not to unleash a second round of quantitative easing. It may be one of the most important decisions in its history. Will the Fed sacrifice the dollar, and risk losing reserve currency status in an attempt to stimulate the economy and “painlessly” pay its debts?  The Telegraph’s Ambrose Evans-Pritchard is warning that the Fed’s quantitative easing plan “risks” a “currency war” that may accelerate “the demise of the dollar-based currency system, perhaps leading to an unstable tripod with the euro and yuan, or a hybrid gold standard.” The problem facing the world is that the global economy is trapped in stalling speed. Most of the regular tools used by central banks have been exhausted. Interest rates are already near zero, and many governments have mostly spent what they can—and yet the global economy is sputtering. [...]"   

MSM: Federal Reserve to print billions of dollars in massive shadow stimulus [11/04/10] "The Federal Reserve's policy-setting panel began a crucial two-day meeting Tuesday, poised to cast aside its long-held reluctance to micro-manage the economy in a bid to avoid a lost decade of growth.  The central bank's open market committee (FOMC) is expected to approve massive stimulus spending not seen since the depths of the economic crisis. At the conclusion of the meeting Wednesday, the Fed is expected to announce it will resume the large-scale purchase of long-term US bonds -- essentially printing billions of dollars -- in the hope of boosting a weak recovery. While the Fed took similar measures during the crisis, it is unprecedented when the economy is not teetering on the edge of collapse, raising protests from some Fed members who fear it is unnecessary and will fuel long-term inflation. Critics of the policy argue that although the recovery is painfully slow, markets should be allowed to do their work. They also worry that if the policy fails the Fed's credibility will be wrecked. "I think that this will quite possibly be the worst mistake by the Fed in a generation," said Stephen Stanley of Pierpont Securities. But supporters argue that the Fed is failing in both of the prongs of its dual mandate, with unemployment and inflation both at unsustainable levels and must act. Since Fed chairman Ben Bernanke first suggested the possibility in late September, and confirmed it in October, markets and most economists have penciled in another round of quantitative easing (QE) as a solid bet. [...]"  Related: Fed Will Probably Start $500 Billion of Bond Buys, Survey Shows "The Federal Reserve will probably begin a new round of unconventional monetary easing this week by announcing a plan to buy at least $500 billion of long-term securities, according to economists surveyed by Bloomberg News. Policy makers meeting tomorrow and Nov. 3 will restart a program of securities purchases to spur growth, reduce unemployment and increase inflation, said 53 of 56 economists surveyed last week. Twenty-nine estimated the Fed will pledge to buy $500 billion or more, while another seven predicted $50 billion to $100 billion in monthly purchases without a specified total. The remainder said the Fed would buy up to $500 billion or didn’t quantify their forecast. The varied responses reflect differences among Fed officials over the total amount of purchases needed to bolster the recovery. Policy makers, pursuing unprecedented stimulus, have cut the benchmark rate almost to zero and bought $1.7 trillion in securities without generating growth fast enough to bring down unemployment from near a 26-year high. [...]   Video clip  [4:27] 

60 Minutes: Fixing The Deficit By Taxing The Rich (Video) [11/03/10]  [13:31]  "Excellent segment from last night's broadcast that includes a battle between Bill Gates Sr., and Microsoft CEO Steve Ballmer, plus some brutally honest deficit commentary from former Reagan budget director David Stockman who lights up both parties for tax and spending madness. Watch at least the first few minutes. Stockman starts out hot. Stockman, who once preached tax cuts, is now in favor of putting a one-time surtax on the rich. Lesley Stahl reports and finds just such a proposal on the ballot in the state of Washington. [...]"  Note:  Read the transcript at CBS 

Bernanke Faces More Congressional Scrutiny After Republican Election Gains [11/03/10] "Federal Reserve Chairman Ben S. Bernanke may have to renew his battle to preserve the central bank’s independence after Republican victories in yesterday’s congressional elections. With Republicans likely reclaiming a majority in the House of Representatives and eroding Democrats’ hold on the Senate, Tea Party candidates who campaigned in part against the Fed get an opportunity to call Bernanke to task for taking part in the unpopular financial rescues that helped propel them to office. “There’s certainly going to be more hearings and more pressure,” said Mark Calabria, a former Republican Senate Banking Committee aide who is now director of financial- regulation studies at the Cato Institute, a policy research group in Washington that favors free markets (which Greenspan said were a mistake)  [...] 

Catherine Austin Fitts: The Looting Of America  Prison Planet.tv Subscription [11/02/10] YouTube Version 4 Video clips " [...]"  Note:   "Former Assistant Secretary of Housing under George H.W. Bush Catherine Austin Fitts blows the whistle on how the financial terrorists have deliberately imploded the US economy and transferred gargantuan amounts of wealth offshore as a means of sacrificing the American middle class. Fitts documents how trillions of dollars went missing from government coffers in the 90s and how she was personally targeted for exposing the fraud. Fitts explains how every dollar of debt issued to service every war, building project, and government program since the American Revolution up to around 2 years ago – around $12 trillion – has been doubled again in just the last 18 months alone with the bank bailouts. “We’re literally witnessing the leveraged buyout of a country and that’s why I call it a financial coup d’état, and that’s what the bailout is for,” states Fitts.  [...]" Related: Catherine Austin Fitts Breaks Down Gov. Hostile Takeover of Pensions [11/02/10] [51:00]  4 Video clips  More Videos  

Our New York Times Op-Ed: How the Banks Put the Economy Underwater [11/02/10] "In Congressional hearings last week, Obama administration officials acknowledged that uncertainty over foreclosures could delay the recovery of the housing market. The implications for the economy are serious. For instance, the International Monetary Fund found that the persistently high unemployment in the United States is largely the result of foreclosures and underwater mortgages, rather than widely cited causes like mismatches between job requirements and worker skills. [...]" 

"Plunder: The Crime of our Time" [11/01/10] [11:02]  "On Wall Street a lot of the extraction tends to be very border-line legal, because the people extracting tend to be the ones setting up the legal framework, so your creating a crime scene and your creating the crime and you effectively appear to be buying the police officers all at the same time, only in the form of a regulatory body or a politician for the laws that work for wall street" [...]"  

"GOP takeover would tighten gridlock on financial relief" [11/01/10] "The two political parties are deeply divided over how to deal with the economy's lackluster performance, and the divide promises to get only more cavernous after Tuesday with the likely takeover of the House by a rejuvenated conservative Republican majority. The challenge came into a full view with the latest snapshot of the economy released by the Commerce Department on Friday, revealing a tepid 2 percent growth rate during the summer quarter that was half a result of temporary factors such as businesses adding to lean inventories as well as a belated kick from stimulus spending by the federal government. All sides agree that such anemic growth will not suffice to bring the unemployment rate down from its perch near 10 percent, and that something more needs to be done to spark a healthier pace of growth. But agreement begins and ends there. [...]"  Related: US Politics: Gallup: Republicans Appear Poised to Win Big on Tuesday; Predicts at Least 60 Seat Gains

Commentary: Piercing the Mystery of the Gold Market [11/01/10] "The precious metals markets have tremendous potential for investors. But they are also wrapped up in great mystery – deliberately so. Gold is the worst understood financial market. Most official data about gold is actually disinformation. Years ago GATA disclosed that the International Monetary Fund, the leading compiler of official gold reserve data, allowed its member nations to count gold they had leased, gold that had left their vaults, as if it was still in their vaults. The effect of this accounting fraud was to deceive the gold market into thinking that central banks had much more gold left to bomb the market with than they really did. But that's only the start of the false data. [...]"   

"Thomas Jefferson's Top 10 Quotes on Money & Banking" [11/01/10] "#4:The art and mystery of banks... is established on the principle that 'private debts are a public blessing.' That the evidences of those private debts, called bank notes, become active capital, and aliment the whole commerce, manufactures, and agriculture of the United States. Here are a set of people, for instance, who have bestowed on us the great blessing of running in our debt about two hundred millions of dollars, without our knowing who they are, where they are, or what property they have to pay this debt when called on." [...]"   

Iran shifted 15% of reserves into gold, says Central Bank Governor [11/01/10] "The Central Bank of Iran (CBI) has switched 15% of its national reserves into gold, reported the official news agency IRNA Saturday, citing the CBI governor. "When the price of each ounce of gold worldwide was on average US$656, a few hundred tons of gold were imported," Mahmoud Bahmani was quoted as saying Saturday at a banking conference in Tehran "At present, the price of each ounce of gold is $1,230. Consequently, the value of the national reserves has risen by a few billion dollars," he said. [...]"  

SEC Sets Aside HUGE Fund For Whistleblowers [10/30/10] "The Securities and Exchange Commission says it has set aside about $450 million for payments to outside whistleblowers whose information results in successful cases and penalties collected from companies or individuals. The SEC set up the program in accordance with the financial overhaul law enacted in July. It follows intense public criticism of the agency for the breakdown that allowed Bernard Madoff's multibillion-dollar fraud to go undetected for 16 years, despite numerous red flags raised by whistleblowers. A report issued Friday by the SEC shows it has put $451.9 million into a new fund to pay whistleblowers, which must have a minimum $300 million. [...]"   

"The scary actual U.S. government debt" [10/29/10] "Boston University economist Laurence Kotlikoff says U.S. government debt is not $13.5-trillion (U.S.), which is 60 per cent of current gross domestic product, as global investors and American taxpayers think, but rather 14-fold higher: $200-trillion – 840 per cent of current GDP. “Let’s get real,” Prof. Kotlikoff says. “The U.S. is bankrupt.” [...]"   

PIMCO CEO Calls Fed “Most Brazen” Of All Ponzi Schemes, Says 30 Year Bond Market Is Ending, Compares US Economy To Black Hole [10/28/10] Note: Great article. Bill Gross is CEO of Pacific Investment Management Company LLC (PIMCO), the largest BOND fund on the planet. Bullets: "The Fed’s announcement of a renewed commitment to Quantitative Easing has been well telegraphed and the market’s reaction is likely to be subdued.  We are in a “liquidity trap,” where interest rates or trillions in asset purchases may not stimulate borrowing or lending because consumer demand is just not there. The Fed’s announcement will likely signify the end of a great 30-year bull market in bonds and the necessity for bond managers and, yes, equity managers to adjust to a new environment.  

Silver trader files suit [10/28/10] "A silver trader filed suit yesterday against JPMorgan Chase and HSBC in Manhattan federal court for allegedly conspiring "to intentionally and unlawfully suppress and manipulate the price of Comex silver futures." Brian Beatty, a Connecticut trader, claims JPM has "reaped hundreds of millions if not billions in profits from their unlawful and manipulative suppression of the prices of Comex silver futures and options contacts." The suit, which may be the first of many, was filed by the Labaton Sucharow law firm, and comes a day after a federal regulator expressed mounting concerns over the "fraudulent efforts to persuade and deviously control" the price of silver. Those comments, by Bart Chilton, a Commodity Futures Trading Commission member, are included in Beatty's suit. Last May, The Post reported exclusively that federal regulators were looking into civil charges against JPMorgan Chase for fraudulent price manipulation. That investigation is coming to a close, according to Chilton's comments yesterday. JPM and HSBC declined to comment. [...]"  

"We Can Either Have a Resolution to the Foreclosure Crisis or We Can Preserve the Capital Structure of the Banks. We Can't Do Both" [10/28/10] [0:33]  

TARP Inspector Exposes Fed Secrets to Dylan Ratigan [10/28/10] Video clip [3:41]  

Amidst record unemployment, US companies hoard $1 trillion in cash [10/27/10] "U.S. companies are hoarding almost $1 trillion in cash but are unlikely to spend on expanding their business and hiring new employees due to continuing uncertainty about the strength of the economy, Moody's Investors Service said on Tuesday. As the economy stabilizes companies are also more likely to spend on share repurchases and mergers and acquisitions, Moody's added. Companies cut costs, reduced investment in plants and equipment and downsized operations in order to boost cash holdings during the recession. As the corporate bond market reopened many companies also boosted cash levels by selling debt and refinancing near-term debt maturities. The US unemployment rate, meanwhile, sits at a whopping 9.2 percent.  Non-financial U.S. companies are sitting on $943 billion of cash and short-term investments, as of mid-year 2010, compared with $775 billion at the end of 2008, Moody's said. This would be enough to cover a year's worth of capital spending and dividends and still have $121 billion left over, it said. [...]" "Graph of the unemployment rates state by state".  The real unemployment rate is around 23%.

William Black With Dylan Ratigan: "There Is Bank Fraud Everywhere And Bernanke Is Leading The Cover-Up"  [10/26/10] [3:18]   "Professor Black appeared on The Dylan Ratigan Show with "Inside Job" director Charles Ferguson. They discussed culpability for the broken financial system and the egregious lack of oversight, and subsequent failure to investigate and prosecute. [...]"   

Commentary:  "What Secret Is Tim Geithner Hiding About The Citigroup Bailout?" [10/26/10]   Video clip [1:59] included.   "... Here's the short version of Geithner's secret. The Citigroup ring fence was a $300 billion boondoggle for taxpayers that was thrown together hastily and without thought in December of 2008, when Citigroup's stock was trading at 90 cents, and rumors of nationalization (bankruptcy) were rampant. It was a last-ditch effort to prop up the failed and insolvent lender, and to a certain degree, it worked. Thankfully, the asset guarantee is gone and taxpayers were never forced to absorb the carcass. But Geithner's intransigent response today shows that the details are ugly and Tim doesn't want anyone to know anything about them. [...]"  

Bank of England governor attacks the 'absurd' risk taken on by big banks, in a speech in the US [10/26/10] "He called the banks' reliance on short-term debt to meet funding needs in 2008 an "accident waiting to happen". He said that, in future, banks must be forced to rely much more on equity to finance their risky activities [...]"  Note: Idiot. Why not stop risky activities, period? This sequential is dumb as a stone, too. 

Commentary: "Full Circle – The War On America Begins" [10/24/10] "With the selection of Obama as the current ringmaster, who has been tasked with bringing down the curtain on the Republic, of what was the USA: These last two years have been torn by moment after moment in which the public has waited to finally see the governments’ real intentions behind all the false starts and broken promises that have emanated from the demands of this obscene monster on the Tarnished House by the criminally-compliant-congress. Rohm is gone now, along with two of the other criminals that brought us to the brink of financial disaster; but yesterday the existence of H. R. 4646 was made public. And finally this long-delayed battle over The War on America is becoming clear. The Debt Free America Act calls for a 1% tax to be paid for every monetary transaction whether in cash or by check with every bank or financial institution in the US. This bill is slated to be ‘approved’ during the Christmas vacation, to keep it as secret as possible in order to finish the transfer of wealth from all citizens to the banks and the government. “The bill is HR-4646 introduced by US Rep Peter DeFazio D-Oregon and U S Senator Tom Harkin. It is now in committee and will probably not be brought out until after the Nov. Elections.  Page 9 states the House and Senate shall convene no later than November 23, 2010 and Page 11 states the vote on passage shall occur no later than December 23, 2010.” It is clear that IF this gets ‘on-the-books’ the actual rate of interest will be subject to the same unnoticed changes that were used to virtually destroy “credit cards’ by giving the banks the right to arbitrarily raise the rate of interest-without cause-and would be solely at the discretion of the institution, without regard for the account holders or their right to know how much they will be arbitrarily charged at any given time.  [...]"   

Disclosure of Asset Backed Security Reviews Proposed [10/23/10] "Issuers of asset-backed securities would be required to perform, and make public, a review of the assets underlying the securities, under new regulations proposed by the Securities and Exchange Commission. [...]"   

U.S. foreclosure mess chills investors, clouds market [10/23/10] " Investors who have been snapping up foreclosed homes are backing off in the wake of the U.S. foreclosure fiasco, driven by sagging inventory and fears over legal title, and some economists say the trend could hurt the overall housing market. [...]"  

 Investigations: "Wendy Gramm, Judge Bruce Levine & Criminal Behavior At The Commodity Futures Trading Commission" [10/23/10] "If you haven't heard this story yet, be prepared for a new realm of outrage. When you read this keep in mind that the CFTC has only 2 judges. Quietly last month, CFTC Case Judge, George H. Painter, issued a "Notice and Order" announcing his retirement from his position. In this notice Judge Painter wrote of a conspiracy at the highest levels of the CFTC (within the enforcement division), where a long time judge of 20 years has been working with past CFTC Chairs to rig the enforcement of the law by never (not once in 20 years) finding anyone guilty of market manipulation. We must be talking about tens of thousands of cases, to put the size of these crimes in scope.  Here are Judge Painter's words: [...]"   

UK: "Timothy Geithner calls on G20 nations to avert global currency war" [10/23/10] "Geithner has told the G20 nations to stop manipulating their currencies to prevent "excessive volatility" and a global currency war. In a letter to the G20 finance ministers, he also urged them to cap current account surpluses or deficits to rebalance the world economy and said the International Monetary Fund should monitor countries' progress. [...]"  Related:  G20 agree broadly on trade, currency rates "Group of 20 Nations financial leaders in South Korea agreed without specifics to avoid currency manipulations and reduce excessive trade imbalances. [...]"  

"The Chances of a Trade War with China are Rising" [10/23/10] "Neither the Obama administration nor the Fed want a full-blown trade war with China. They'd rather see China “assume its position in the global system”. (as US diplomats aver) But that means that China will have to compromise on, what it considers to be, a matter of national sovereignty. And, there's the rub. China is a proud nation and doesn't want to be told what to do. But that's not how the system works. Behind the facade of free markets and international institutions, lies an imperial system ruled from Washington. That leaves Beijing with two options; they can either bow to US pressure and fall in line or shrug off Washington's demands and continue on the same path. If they choose to resist, relations with the US will grow more acrimonious and the probability of conflict will rise. [...]"   G20 inks pact to avert trade war "The Group of 20 major economies agreed on Saturday to shun competitive currency devaluations but stopped short of setting targets to reduce trade imbalances."

Nation's Biggest Banks Each Hold over $20B in Foreclosures: Report [10/23/10] "New data released this week shows that the nation’s largest banks are holding monstrous volumes of soured home loans. Not only has the housing crisis left major lenders knee-deep in an ocean of non-performers, but added exposure to early delinquencies means they could sink even deeper. [...]"   

Flashback: Rep. Alan Grayson: "Has the Federal Reserve Ever Tried to Manipulate the Stock Market?" [10/23/10] [5:42]  "This is Rep. Alan Grayson asking Federal Reserve General Counsel Scott Alvarez about the Fed's independence [...]"  Note: Relentless ....

"The New Tax Man From Ancient Rome" [10/22/10] "Sheila Rice, who sold her Maryland home to avoid foreclosure, was surprised to learn JPMorgan Chase was her property tax collector. But the bank can’t claim to be the first private company to play the role of tax man: It’s taken part in a more than 2,000-year-old tradition that, from its very start, has been tainted by abuse. As the Huffington Post Investigative Fund reported this week, big banks and hedge funds in the U.S. have been quietly collecting taxes on hundreds of thousands of homes. The process, called “tax farming,” is simple: A company goes to a local government and reimburses it for taxes that citizens aren’t paying. In return, the company gets to act like an old-fashioned tax thug — the kind rabbis condemn in the Bible — charging up to 18 percent interest and thousands of dollars in legal fees, simply because it can. As the District of Columbia attorney general told the HuffPost Investigative Fund, there’s “no oversight at all.” Like many great American traditions, the tax farming game was perfected by the ancient Romans. Provincial governors, and later Rome itself, sold tax-collection rights to private companies called publicani. As in modern America, this was a speculative bet — a company paid a local government’s tax debt, and then tried its own hand at recouping the loss. The Roman version was plainly brutal. In ours, the brutality is subtle. But in the estimation of one expert in ancient finance, it’s just as bad: In our own way, we’re sliding toward the conditions of ancient Rome, where private tax collectors employed soldiers to wring excessive amounts of cash from debtors. “I fear that we’re soon going to be where the Romans once were,” New York University classics professor Michael Peachin said in an interview with HuffPost. “We’re liable to rue the day — not we, probably, but somebody will someday.” [...]"  Note: Sequentials and their predispositions, reincarnating over and over, dealing out the same Orionized bullshit.

Vatican Banking Fraud Probe Widens: Church 'Astonished' It Must Adhere to Money Laundering Laws [10/22/10] "The Associated Press reported today that the Vatican expressed "astonishment" when an Italian court rejected the release of Vatican bank funds seized by authorities for failing to comply with international money laundering laws. Prosecutors claim that the $30 million seizure that occurred last month is due to non-disclosure of the transfer destination of large sums of money. Although the Vatican bank -- Institute for Works of Religion -- vows that it is working within international banking rules, the prosecutor found "exactly the opposite" was true. The AP reported: Under the investigation,  [...]"   

Overview: "Origins of Fed Explain Financial Collapse" [10/22/10] "In 1913, at 11:45 p.m., on Dec. 23, Congress approved a private corporation designed to form a private corporation, designed to control the monetary system of our country. They moved with a calculated craftiness and deceit to pass legislation that would enslave every American as a debtor to their corporation. To give you an idea as to where our country is with debt, as of September 2008, the [official] U.S. federal debt had reached approximately $9.7 trillion, or $31,700 per person. [As of October 2010, the national debt now stands at $13.6 trillion.—Ed.] However, when the unfunded liabilities such as Social Security, Medicare, and other social programs are added in, our total debt grows to $59.1 trillion, or $516,348 per household. In 2005, the [...]"   

Keiser Report meets Schiff Report 2.0  [10/22/10] [26:00]    "This time Max Keiser and co-host, Stacy Herbert, discuss ‘all’s fair in love and currency wars,’ but while the US and China battle it out, is it possible that the United States could seize Germany’s gold reserves held at the New York Fed? In the second half of the show Max talks to Peter Schiff about the dollar, gold and currency wars. [...]"   

Morgan Stanley Sued for Fraud by China Development Industrial Bank [10/21/10]   [0:41]   "Morgan Stanley (NYSE:MS) has been sued by China Development Industrial Bank for fraud, reports Bloomberg Wednesday. The Chinese bank is looking to recover losses from a residential mortgage-backed securities investment. China Development's intention to sue Morgan Stanley became public following market close late Tuesday afternoon. SmarTrend currently has Morgan Stanley in an Uptrend and is monitoring these developments and will alert subscribers to any change of trend. [...]"  

"Indiana couple accuses Bank of America of racketeering" [10/21/10] "Bank of America Corp. and its Countrywide Home Loans unit were accused of racketeering in a lawsuit filed by two Indiana residents claiming that perjured affidavits were used to foreclose on their home. Dwayne Ransom Davis and Melisa Davis filed the complaint Tuesday in federal court in Indianapolis. Their lawyer, Irwin Levin, confirmed the filing in a phone interview, but it couldn’t be independently verified. “The defendants and their cohorts engaged in a pattern of racketeering activity in which they routinely and repeatedly prepared perjured affidavits in order to rapidly churn foreclosures,” the couple said in the complaint. [...]"  Related:  Bank of America Accused of Racketeering in Class Action Foreclosure Lawsuit  

NY Fed, 8 Firms Threaten BofA Over Mortgage Securities [10/20/10] "The New York Federal Reserve Bank is part of a consortium of eight large institutional investment firms that is demanding that Bank of America repurchase loans included in mortgage securities. Bloomberg reported earlier Tuesday that the New York Fed had joined with the Pacific Investment Management Company, better known as Pimco, and investment management firm BlackRock in an attempt to force BofA to buy back $47 billion in mortgage bonds. Kathy Patrick, lead attorney for the consortium, confirmed in a statement Tuesday that the group holds more than 25 percent of the voting rights in more than $47 billion worth of Bank of America securities. Pimco and BlackRock had no comment when contacted by CNBC.  [...]"  Note:  Foreclosure is the only way the banks can cover their tracks, of their underwriting fraud. Related: BofA asked to buy back Countrywide loans  "Major investors, including the Federal Reserve Bank of New York, have asked Bank of America to buy back mortgages issued by Countrywide, a law firm said. [...]"    

"Giant Loophole In The Financial Reform Bill Allows The Fed To Give Backdoor Bailouts To Banks" [10/20/10] [7:08]   "Cenk Uygur (host of The Young Turks) filling in for Chris Jansing on MSNBC Live talks to Rolling Stone's Matt Taibi about a giant loophole in the financial reform bill that allows the Fed to give backdoor bailouts to banks. [...]"   

Commentary:  "Welcome to the Machine: MERS and The Shadow Banking System" [10/20/10] "A story is breaking upon the nation as I write this. It is a story I have been forced to live for the last year and a half. In that year and a half I have come to learn a lot of confusing truths about the way the money in this world really works. The mainstream media is talking more and more about the foreclosure scandal and at the heart of it all is MERS. Mortgage Electronic Registry Service. It’s the biggest littlest company you have never heard of before and in the thirteen years of its existence, it has utterly destroyed the real property ownership records system in every county in the United States.  The purpose of The Working Joe’s Guide to MERS & Mortgage Banking is to provide the every day average Joe & Joie the information they need to understand this tremendous scandal unfolding ahead. More importantly, use this information to arm yourself with truth so you can cry BULL---- when the talking heads try to spin the story for you. And they will. Be warned. The story has so many facets that to sit down and take it from one end to the other leaves one a bit befuddled. Smoke comes out of your ears, if you know what I mean. Thinking and operating in the world of MERS is a testament to the infinite adaptability of the human condition. I recall when I first came to the realization of the Meaning of MERS and the smoke started to pour from my ears. It was late at night and I had been researching what had happened to me about a week earlier. I had just invoked the “Produce the Note” defense in court and had won a stay on the sale in the foreclosure of my house. After the euphoria wore off, I really started to wonder what had just happened.  [...]"   

Keiser Report №87: Markets! Finance! Scandal!  [10/20/10] [26:32]   "This time Max Keiser and co-host, Stacy Herbert, look at the full scale currency war launched by the "tomb maker" and at hiring hair stylists as scabs to cross the bankers' picket line. He also talks to Ellen Brown about Foreclosure-gate. [...]"    

Task force probing whether banks broke federal laws during home seizures [10/20/10] "Federal law enforcement officials are investigating possible criminal violations in connection with the national foreclosure crisis, examining whether financial firms broke federal laws when they filed fraudulent court documents to seize people's homes, according to people familiar with the matter. The Obama administration's Financial Fraud Enforcement Task Force is in the early stages of an investigation into whether banks and other companies that submitted flawed paperwork in state foreclosure proceedings may also have misled federal housing agencies, which now own or insure a majority of home loans, according to these sources. The task force, which includes investigators from the Justice Department, Department of Housing and Urban Development and other agencies, is also looking into whether the submission of flawed paperwork during the foreclosure process violated mail or wire fraud laws. Financial fraud cases often involve these statutes. [...]"  

U.S. Debt Woes Expose Hidden Austerity and Looting of Public Assets [10/18/10] "The austerity sharks are circling their wounded prey. The U.S. economy continues to collapse amid dwindling stimulus funds, while states are barely able to keep their heads above water. In addition to cutting vital services to taxpayers, and seeking tax increases, some states are also selling off public assets in the politically acceptable name of privatization. This mass looting is happening just below the surface where the public, buried by their own individual problems, can hardly tell that it is happening.  In June of this year Bloomberg reported that 46 states were facing bankruptcy with “Greek-style deficits,” where Dean Baker, co-director of the Center for Economic and Policy Research in Washington, was quoted as saying that “States are going to have to cut back spending and raise taxes the same way Greece and Spain are. Despite the fact that average American citizens, much like the Greeks, had nothing to do with creating these massive “budget holes,” their Social Security is being raided, and public pensions have been invested in derivatives and other toxic time-bomb financial instruments. Now, they will surely face austerity measures of similarly reduced benefits and services accompanied by increased taxes to absorb the damage. Although spending cuts and smaller government through privatization might make sense when faced with growing deficits, we must be aware that austerity measures can also hide in the shadows of privatization. Some politicians are touting the privatization of public services and assets as part of the economic solution. However, the public is being left out of the discussion about which services will be affected, what public assets are being sold, who is getting contracts or purchasing assets and, finally, to what benefit to the people. Given the self-serving track record of a crony corporate State, we can only assume the worst — that none of these actions will actually benefit average Americans, but only provide continued cover for more looting.” [...]"     

Max Keiser: Dollar to be buried way before '2018' [10/18/10] [5:41]  "World's major powers including China and Russia don't want to 'finance' American military adventures anymore. That's the view of Max Keiser, finance critic and former stockbroker. He says China and Russia are interested in collapsing the US economy by rejecting the dollar. [...]"   

IMF sets central bank meeting in Shanghai [10/17/10] "The International Monetary Fund on Friday said it will hold a high-level conference of central bank governors in Shanghai next week to discuss ways to address the global financial crisis.  The IMF said the conference, scheduled for Monday, would include central bank chiefs and other officials from Asia, Africa, Europe, and North and South America.  The People's Bank of China will host the conference, to be co-chaired by the head of the central bank, Zhou Xiaochuan, and IMF managing director Dominique Strauss-Kahn, the Washington-based institution said in a statement.  The US Federal Reserve was expected to be represented by Kevin Warsh, a member of the central bank's policy-setting Federal Open Market Committee.  The Shanghai conference follows on the heels of last week's IMF and World Bank annual meetings, where leading finance officials discussed steps to strengthen the global economy's recovery from the worst recession since World War II and the global financial system.  "The conference is part of the ongoing international examination of the policy challenges posed by the global financial crisis," the IMF said.  Asked about the last-minute timing of the announcement in Washington, just days before the meeting opens in Shanghai, an IMF spokesman told AFP there was "no urgency surrounding this conference." "This was in planning for a number of months," he said. [...]"  

Congressional Staffers Gain From Trading in Stocks  [10/17/10] "A few lawmakers proposed a bill that would prevent members and employees of Congress from trading securities based on nonpublic information they obtain. The legislation has languished since 2006. "Congressional staff are often privy to inside information, and an unscrupulous person could profit off that knowledge," says Vincent Morris, a spokesman for Rep. Louise Slaughter (D., N.Y.), a leading backer of the "Stop Trading on Congressional Knowledge Act," or STOCK Act. "The public should be outraged there is no law specifically banning this." When the bill was introduced nearly five years ago, just 14 other lawmakers endorsed it. The current version of the bill has fared worse: Only nine lawmakers support it. There is no companion legislation in the Senate. Congressional aides have ringside seats on the making of laws that affect American business. Receiving salaries up to roughly $170,000 a year, they can glean information about policies and government action before the public. They have access to information about hearings or legislation that can move stocks and markets.  [...]"   

UK companies selling pensions take 80 percent in fees and commissions [10/16/10] "Research carried out by the BBC has revealed that some pension-selling companies take as much as 80 percent in fees and commission from some of their private pension plans. The rip-off involves not merely rogue operators or a few isolated cases, but well known high street names such as HSBC, Legal and General, and the Co-Op.  None of the companies concerned disputed the BBC’s findings. Concerns have been raised for some time about the high level of fees being charged by private pension providers. The BBC examined the pension plans sold by the main providers, using data provided by the companies themselves and the Consumer Finance Education Body (CFEB). Of the 24 providers, 21 volunteered the information to the CFEB and confirmed it as accurate. According to Panorama, the BBC’s flagship investigative programme, the fees and commission accruing on one HSBC pension plan, where someone pays in £200 a month, would amount to £99,900, or 80 percent of the £120,000 money paid in over 40 years. HSBC admitted that it makes a 20 percent profit margin on such a pension, but claimed that the pension was “good value for money”, “competitive” with other similar pension plans and was “certainly not one of the most expensive pension schemes on the market”. In that case, all the other pension providers are also ripping off their customers. The Co-Op, a mutual insurance society with no shareholders to satisfy, would take nearly £96,000 in fees over 40 years on deposits worth £120,000 in its Individual Personal Pension. The Co-Op claimed that it had higher costs because it used external fund managers to administer the pension plan. [...]"  Note:  Parasitic lazy sequentials ... rampant theft of peoples money.

U.S. backs off in currency dispute with China [10/16/10] "The Obama administration backed away on Friday from a showdown with Beijing over the value of China's currency that would have caused new frictions.  The Treasury Department delayed a much-anticipated decision on whether to label China as a currency manipulator until after the U.S. congressional elections on November 2 and a Group of 20 leaders summit in South Korea on November 11. Washington and the European Union accuse China -- set to become the world's second- largest economy after the United States this year -- of keeping the yuan artificially low to boost exports, undermining jobs and competitiveness in Western economies. Fears are growing of a global "currency war" as major trading powers, such as the United States and Japan, seek to weaken their currencies while emerging economies such as Brazil and South Korea raise or threaten tougher controls to limit capital flows. [...]"    

WikiLeaks accuses US of ‘financial warfare’ [10/16/10] "The founder of whistleblower Web site WikiLeaks says the US government is involved in a campaign of “financial warfare” against the group. The Guardian has obtained correspondence between WikiLeaks and British-based online payment company Moneybookers, in which the company explains that it has “terminated the business relationship” with WikiLeaks because the Web site has been added to “blacklists in Australia and watchlists in the USA.” The Guardian reports:  The apparent blacklisting came a few days after the Pentagon publicly expressed its anger at WikiLeaks and its founder, Australian citizen Julian Assange, for obtaining thousands of classified military documents about the war in Afghanistan, in one of the US army’s biggest leaks of information. The documents caused a sensation when they were made available to the Guardian, the New York Times and German magazine Der Spiegel, revealing hitherto unreported civilian casualties. WikiLeaks defied Pentagon calls to return the war logs and destroy all copies. Instead, it has been reported that it intends to release an even larger cache of military documents, disclosing other abuses in Iraq. “This is likely to cause a huge backlash against Moneybookers,” Assange told the Guardian. “Craven behavior in relation to the US government is unlikely to be seen sympathetically.” [...]"  

"Rollover-1981- Aftermath of the Gold Scandal and World Economic Collapse" [10/15/10] " [7:47] "This is what the Complete and Total Economic Collapse of the United States and the World looks like on film. The Federal Reserve and Alan Greenspan engineered the greatest financial catastrophe in history of the planet. The Federal Reserve must be audited and abolished! [...]"   

Dylan Ratigan: Foreclosure Fraud & $45 Trillion Dollars [10/16/10] [14:10] " [...]" See Corbett Report: ForeclosureGate, EconoCrash, Portlandia Crime Haven - New World Next Week  [10/14/10] and related stories, below.

Bank of America Downgraded by Bond Market on Foreclosures: Credit  [10/15/10] "Bondholders are penalizing Bank of America Corp. the most of any of the largest U.S. financial firms as the investigation into the foreclosure crisis expands. [...]"   

 Real News: Drunk Driving and Highway Robbery on Wall Street [10/15/10] [12:49]  "Real News Network's Paul Jay talks with Sony Kapoor, Managing Director of Re-Define (Rethinking Development, Finance & Environment), an international Think Tank promoting financial system reform. Kapoor metaphorically compares the actions of Wall Street and the US Finance Industry to the psychology of alcoholism and drunk driving, and the actions of the people charged with regulating the industry with the reactions of people in denial living with alcoholics, and concludes that another crash is likely inevitable. [...]"    

Analysis:  "$2 Trillion False Flag Event at the U.S. Treasury, The Fed’s Furtive Filching" [10/14/10] "The theft was planned. It started with a ‘false flag’ event in 2008. Much like the ‘false flag’ event of 2001 in which two planes somehow imploded three buildings, the false flag event of 2008 was a game changer. As you remember, the big banks had bankrupted themselves with derivative driven debt issuance that could not be repaid. The financial system was in peril. Or, so we were led to believe. We were told by the Treasury Secretary at the time that ‘toxic illiquid assets were clogging up the system’ and preventing the lending process from working. They needed immediate assistance and that assistance could only come from the Federal Reserve. All we had to do was to surrender the Treasury. Our Congress complied and the false flag ruse had worked again. The theft could proceed. The Fed then proceeded to buy the ‘toxic illiquid assets’ from the big banks. In all, it was about $1,250,000,000,000.00 in MBS (Mortgage Backed Securities) paper - give or take a few hundred billion. Where did they get the money? The Treasury printed it by increasing the debt by virtue of Treasury note issuance. Bear in mind that the Federal Reserve is a for-profit privately owned bank. Now they own a lot of bad paper. How did they complete the theft? At this time, let me bring in Mr. Brian Sack to the story. Mr. Sack is the executive vice-president of the markets group at the Federal Reserve Bank of New York. He is the manager of the System Open Market Account (SOMA) for the FOMC. Basically, he manages the trading for the Fed. Mr. Sack has a doctorate in economics from MIT. A word of foreshadow and caution. As I have written in the past, it seems that everyone that has served to screw up the economy has been spawned by MIT, Harvard, or U. Cal. Berkeley. [...]"  

Debt market strips U.S. of triple-A rating [10/14/10] "The United States has lost its gold-plated triple-A rating -- in the eyes of credit traders, at least. U.S. sovereign debt was the third-worst performer in a closely watched derivatives market during the third quarter, CMA said Tuesday in its quarterly review of global sovereign credit risk. The cost of insuring against a default on U.S. government bonds via so-called credit default swaps rose 28% in the quarter ended Sept. 30, the firm said. That puts the United States' third-quarter performance behind only two other nations, both of which are struggling with the early stages of sovereign debt crises: Ireland, whose CDS prices rocketed 72% to a record amid growing questions about the costs of a massive bank bailout, and Portugal, whose costs jumped 30%. What's more, the decline leaves U.S. debt trading at an implied rating of double-A-plus for the first time in memory. [...]"  

Corbett Report: ForeclosureGate, EconoCrash, Portlandia Crime Haven - New World Next Week   [10/14/10]  [13:45]  Related:  ‘A Complete Housing Market Collapse’: Foreclosure Debacle May Cause 30% Plunge in Real Estate Sales | U.S. Home Seizures Reach Record Amid Foreclosure Review | Foreclosure Fraud: 6 Things You Need To Know About The Crisis That Could Potentially Rip The U.S. Economy To Shreds " #6: Renowned investor Jim Sinclair is actually warning that the collapse of securitized mortgage debt could be the "final shot" that will wipe out many financial institutions across the United States."

Commentary: "Dollar To Come Under Attack; US Bonds Will Become Garbage" [10/14/10] "The Federal Reserve, U.S. government and several interested parties are involved in monetary and economic warfare and it’s about to get serious, says economic analyst Max Keiser:  “A lot of big money around the world is going to drop the dollar and basically disenfranchise the US economy. This is not just a remark in passing, this means that the US economy goes belly up effectively and the dollar gets completely wiped out the face of the earth and gold goes to 1400, 1500, 1600 dollars an ounce because the big money in the world is sick of the liars, Tim Geithner, Barack Obama, Ben Bernanke, they are sick of the financial terrorism, they are sick of the grand standing, and they are going to drop kick them over gold post into a sea of their own bad debts. So forget about the specifics here, we are talking about wholesale countrywide loss of their sovereign credit. The US government bond will be about as valuable as garbage. This isn’t just about the U.S. government and the powers that be “saving the system.” There is a lot more going on under the hood, and regular people like us will not know what happened until after the fact, if ever. At the risk of being dismissed as outlandish conspiracy theorists, we must point out to our readers that things may not be as they seem.” [...]"   

Inside the Global Banking Intelligence Complex, BCCI Operations Part II [10/14/10] "While investigating BCCI operations, I began to clearly understand for the first time how the Global Banking Intelligence Complex runs both political parties in the United States. After years of researching and investigating BCCI, I’ve come to understand how power really operates, who the real power players are and how the mainstream media, which is tightly controlled by these forces, keeps the American public in the dark and marginalized by never reporting on the roots of power. The harsh truth is that American democracy and the rule of law are an illusion. When you peel back all the layers, the ultimate power in this world lies within the Global Banking Intelligence Complex, or the “money powers” as our Founding Fathers and early presidents called them. If you research our forefathers, you will see that they understood this point very well. The main theme throughout American history has always been the war between democracy and the concentration of power within the banks. [...]"  Related:  Historical Analysis:  "The Road To World War III:  Inside The Global Banking Intelligence Complex, BCCI Operations [10/10/10] This is the second installment of David DeGraw’s new book, “The Road Through 2012: Revolution or World War III.”  "To get a more complete understanding of our current crisis, we need to look at the history of events that led up to it. We need to peer deeply into the inner workings of the Global Banking Intelligence Complex. Without acknowledging and exposing the covert forces that are aligned against us, we will not be able to effectively overcome them. In the past I have shied away from going too deeply into the details of the intelligence world out of fear of being written off and dismissed as a conspiracy theorist. If I hadn’t spent the majority of the past 20 years investigating global financial intelligence operations, I certainly wouldn’t believe half of this myself. Given the severity of our current crisis and the imminent devastating implications, I now realize that I must go deeper into covert activities than I publicly ever have. The information I am about to report is very well-sourced and documented, and needs to be covered before we can proceed to exposing present operations. [...]"  Related: "The Road To World War III: The Global Banking Cartel Has One Card Left To Play" [09/27/10] "The following is Part I to David DeGraw’s new book, “The Road Through 2012: Revolution or World War III.” ... "Economic Imperial Operations: When we analyze our current crisis, focusing on the past few years of economic activity blinds us to the history and context that are vital to understanding the root cause. What we have been experiencing is not the result of an unforeseen economic crash that appeared out of the blue with the collapse of the housing market. It was certainly not brought on by people who bought homes they couldn’t afford. To frame this crisis around a debate on economic theory misses the point entirely. To even blame it on greedy bankers, while essentially accurate, also misses the most vital point. This crisis is the direct result of a strategic economic attack on the existence of a middle class and democracy worldwide. The stock market and economy have become weapons of mass oppression manipulated by an imperial banking cartel to impose order and exploit the masses. This crisis boldly represents the manifest evolution of the fascist spirit reasserting itself as the dominant ideology.  Any fairytale notions of the United States being a democratic republic built on the rule of law have been utterly dispelled. As a nation we have been bred and conditioned to be dangerously naïve to the darker forces which operate beyond the spotlight of the mainstream media. We have been blinded to what has been developing throughout the world.  The economic imperialism that has now blown-back to the United States and Europe has been evolving for decades and can be directly traced back to the end of World War II, to the birth of the CIA, International Monetary Fund (IMF) and World Bank.  For those of us who have been paying attention to economic imperial operations that have been carried out against countries throughout the world, this looks all too familiar.[...]"   

Analysis:  "Fed Minutes Add Mystery to What's Next" [10/13/10] "It's the $500 billion question: will the Federal Reserve's Open Market Committee order another round of quantitative easing ("QE2") when it meets in November? The detailed minutes were released today from the FOMC's September 21st meeting. Ever since its brief statement was released last month, the market has been speculating that QE2 is imminent, with many people arguing that the Fed showed its hand by expressing its readiness to act. But the minutes provide additional uncertainty on whether we'll see more monetary expansion in November.  [...]" 

Wall Street Pay Heads Toward New High: $144 Billion [10/13/10] "Pay on Wall Street is on pace to break a record high for a second consecutive year, according to a study conducted by The Wall Street Journal. About three dozen of the top publicly held securities and investment-services firms—which include banks, investment banks, hedge funds, money-management firms and securities exchanges—are set to pay $144 billion in compensation and benefits this year, a 4% increase from the $139 billion paid out in 2009, according to the survey. Compensation was expected to rise at 26 of the 35 firms. [...]"   Note:  Sequential losers.   Video clip  [9:14]

Commentary: Predatory Finance: The New Mode of Global Warfare [10/13/10] "What is to stop U.S. banks and their customers from creating $1 trillion, $10 trillion or even $50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing the arbitrage spreads by debt leveraging at less than 1% interest cost? This is the game that is being played today. The outflow of dollar credit into foreign markets in pursuit of this strategy has bid up asset prices and foreign currencies, enabling speculators to pay off their U.S. positions in cheaper dollars, keeping for themselves the currency shift as well as the arbitrage interest-rate margin. Finance has become the new mode of warfare – without the expense of military overhead and an occupation against unwilling hosts. It is a competition in credit creation to buy global real estate and natural resources, infrastructure, bonds and corporate stock ownership. Who needs an army when you can obtain monetary wealth and asset appropriation simply by financial means? Victory promises to go to the economy whose banking system can create the most credit, using an army of computer keyboards to appropriate the world’s resources. The main hurdle confronting this financial Lebensraum drive is that it requires the central banks of targeted economies to accept electronic dollar credit of depreciating international worth in payment for national assets. U.S. officials demonize countries suffering these dollar inflows as aggressive “currency manipulators” for what Treasury Secretary Tim Geithner calls “‘competitive nonappreciation,’ in which countries block their currencies from rising in value.” Oscar Wilde would have struggled to find a more convoluted term for other countries protecting themselves from raiders trying to force up their currencies to make enormous predatory fortunes. “Competitive nonappreciation” sounds like “conspiratorial non-suicide.” These countries simply are trying to protect their currencies from arbitrageurs and speculators flooding their financial markets with dollars, sweeping their currencies up and down to extract billions of dollars from their central banks. [...]"   

Senate Hearing: Seizure of 401k Accounts May Be Reality Soon [10/12/10] "Reports over the last couple years have suggested that the U.S. government would move to seize traditional 401k and IRA retirement accounts by rolling them into a government managed Guaranteed Retirement Account, or GRA. For the most part, save in alternative media circles, the reports have been dismissed as nothing more than an “idea” floating around. But the bill has reportedly already been written and last Thursday, October 7, 2010, Congress held a recess hearing on the matter. The push to bailout union pensions and give more control of individual wealth to the U.S. government is underway. [...]  Democrats in the Senate on Thursday held a recess hearing covering a taxpayer bailout of union pensions and a plan to seize private 401(k) plans to more “fairly” distribute taxpayer-funded pensions to everyone.  Sen. Tom Harkin (D-Iowa), Chairman of the Health, Education, Labor and Pensions (HELP) Committee heard from hand-picked witnesses advocating the infamous “Guaranteed Retirement Account” (GRA) authored by Theresa Guilarducci.  (You can find the blistering interview with Guilarducci by radio talk show host Mark Levin in 2007 at the link).  In a nutshell, under the GRA system government would seize private 401(k) accounts, setting up an additional 5% mandatory payroll tax to dole out a “fair” pension to everyone using that confiscated money coupled with the mandated contributions. This would, of course, be a sister government ponzi scheme working in tandem with Social Security, the primary purpose being to give big government politicians additional taxpayer funds to raid to pay for their out-of-control spending."  Note: Comment: "Though the elections in November are expected to shift the power in Congress, if democrats enact this bill before the new Congress takes over in January, we find it difficult to believe that any such law will be repealed.We hold a similar sentiment in regards to the health care bill, which we believe will not be repealed so long as a democrat President sits in the Oval Office. Whether that would change if a republican President were in charge, along with a republican Congress, is only speculation at this point."

Foreclosure Scandal Exposes Systemic Derivatives Fraud  [10/12/10] "Filing false documents in courts to obtain illegal foreclosures, breaking into homes and changing the locks while the residents are still legally living there, and even foreclosing on homes which have no mortgages—these are just some of the things the derivatives arms of the giant banks are doing, as they throw people to the wolves in a vain effort to stop their own collapse into oblivion. We are not at all surprised that the derivatives banks are acting this way—in fact, we would be a bit surprised if they didn't, given the criminal nature of the financial markets. It would be nice to be able to say that we are surprised that the Federal regulators are letting them get away with it, but that one won't fly. Under the Obama regime, with the help of Speaker of the House Nancy Pelosi, and "Bailout" Barney Frank and Chris Dodd of the House and Senate banking committees, the banks have gotten pretty much whatever they wanted. If that includes your house, too bad for you ... [...]" 

Asian powers guard against inflows after IMF [10/12/10] "Asian authorities anxious about currency appreciation moved to stem foreign capital inflows on Monday while a European official stepped up rhetoric about a strong euro after IMF meetings failed to defuse tensions about exchange rates. China temporarily raised reserve requirements for six large commercial banks, four sources told Reuters, a surprise move aimed at draining cash from the economy. Thailand, also on edge about a rapidly rising currency that has alarmed exporters, said it may impose a tax on foreigners' bond purchases. With interest rates in the developed world at record lows, investors have poured money into higher-yielding emerging market assets, driving up local currencies in the process. Governments, afraid that rising exchange rates will hurt exports and stunt economic growth, have tried to limit currency appreciation, sparking fears of a "race to the bottom" that may trigger trade tariffs and a sharp decline in global growth. [...]"   

FDIC Ready To Sue Executives From Failed Banks, Seeking Over $1B [10/09/10] "The Federal Deposit Insurance Corporation is poised to sue over 50 executives from failed banks, Bloomberg News reports. The potential lawsuits would help the FDIC recover more than $1 billion it lost during the credit crisis, which has forced the FDIC to take over 294 lenders since 2008. So far the FDIC, which, according to Bloomberg, doesn't sue unless it believes the defendant is able to pay up, has only filed one lawsuit related to the credit crisis, against IndyMac executives in July. [...]"  

Obama Uses 'Pocket Veto' on Foreclosure Bill [10/09/10] "President Obama is refusing to sign a bill that critics say would make it easier for banks to rush foreclosures on homeowners, the Wall Street Journal reports. The bill zipped through both the House and Senate when it was deemed an uncontroversial measure on interstate commerce— it centers on out-of-state notarizations—but the national scandal over thousands of rushed foreclosures has changed things. Obama has never vetoed a bill outright, and won't start with this one—he'll use the "pocket veto" process to send it back to Congress, though it's not clear what changes the president will require.  [...]"  Related: How The Controversial Foreclosure Bill Made It Through Congress With No Public Debate  "President Obama vetoed a bill yesterday that some homeowner advocates worried would have made it easier for banks to proceed with bogus foreclosures by forcing courts to recognize out-of-state and electronic notarizations. The bill, titled the Interstate Recognition of Notarizations Act, had glided through the Senate with no public debate and passed by "unanimous consent" on Sep. 27 -- despite the fact that the nation's biggest banks have for the past few weeks been embroiled in a foreclosure scandal spawned in part by their use of bogus notarizations. The bill has been passed by the House three times since 2007, and each time it died in the Senate Judiciary Committee.  [...]" | Fraud in Home Mortgages: “ForeclosureGate” and Obama’s “Pocket Veto” – Ellen Brown   "Amid a snowballing foreclosure fraud crisis, President Obama today blocked legislation that critics say could have made it more difficult for homeowners to challenge foreclosure proceedings against them. The bill, titled The Interstate Recognition of Notarizations Act of 2009, passed the Senate with unanimous consent and with no scrutiny by the DC media. In a maneuver known as a “pocket veto,” President Obama indirectly vetoed the legislation by declining to sign the bill passed by Congress while legislators are on recess. The swift passage and the President’s subsequent veto of this bill come on the heels of an announcement that Wall Street banks are voluntarily suspending foreclosure proceedings in 23 states. By most reports, it would appear that the voluntary suspension of foreclosures is underway to review simple, careless procedural errors. Errors which the conscientious banks are hastening to correct. Even Gretchen Morgenson in the New York Times characterizes the problem as “flawed paperwork.” But those errors go far deeper than mere sloppiness. They are concealing a massive fraud. They cannot be corrected with legitimate paperwork, and that was the reason the servicers had to hire “foreclosure mills” to fabricate the documents. These errors involve perjury and forgery — fabricating documents that never existed and swearing to the accuracy of facts not known. Karl Denninger at MarketTicker is calling it “Foreclosuregate.” [...]"   

Flush With Cash, US Companies Buy Own Stock [10/09/10] "American companies are sitting on record piles of cash right now, but instead of spending it to hire more workers or increase productivity, most are choosing to buy back huge quantities of their own stock, the Washington Post reports. This year firms have announced $273 billion in buybacks, more than five times last year’s figure. “They don’t know what they want to do with all the cash they’re sitting on,” explains one researcher. With the Federal Reserve holding interest rates at a record low, many are actually borrowing money to buy back those shares. Microsoft, for example, borrowed $4.75 billion to buy back shares, even though it has $37 billion in cash stashed overseas. “There are times when the best thing to do might well be to buy back your stock,” says one investment strategist. “There’s nothing wrong with that.” But some critics do see something wrong with that. “It’s totally wasted money,” grumbles one professor. “It does not do anything long-term for companies.” [...]"  Note:  It's the sequentials, who are short on conceptualization and the big picture.  

Known Gold Supply Conduits Will Not Deliver Any Significant New Supply In The Future [10/09/10]  Note: This article does not constitute a recommendation to do anything. 

12 Ominous Signs For World Financial Markets [10/07/10] "There are some very ominous signs that something is just not right in world financial markets right now. Some of the signs listed below may be related. Others may not be. That is for you to decide. Often, just before something really bad happens, you can actually see the rats leaving a sinking ship if you know where to look. The truth is that if things are going to go south it is the insiders who know before anyone else. So are some of the signs below actually clues for what we should expect in the months ahead? Maybe. Maybe not. You make your own call. But it is becoming hard to deny that there are some serious danger signs out there at this point….  [...]"  

"Will Fed Be Allowed to Buy $1 Trillion In Fraudulent Securities For Hyperinflation?" [10/07/10] "Since the vast corruption involved in (what once was) the $6 trillion mortgage securitization bubble spilled out into the open two weeks ago, where the public and lawmakers could not help seeing the magnitude of it, the dynamic of a national home foreclosure moratorium is spreading quickly. [...]"   

Bernanke: The United States is on the Brink of Financial Disaster [10/06/10] "Yesterday, Federal Reserve Chairman Ben Bernanke delivered a speech before the the Annual Meeting of the Rhode Island Public Expenditure Council in Providence, Rhode Island. In the speech, he warned about the current state of the government finances. His conclusion, the situation is dire and "unsustainable". It is remarkable that mainstream media has given this speech no coverage. I repeat, the central banker of the United States says in his own words: "Let me return to the issue of longer-term fiscal sustainability. As I have discussed, projections by the CBO and others show future budget deficits and debts rising indefinitely, and at increasing rates. To be sure, projections are to some degree only hypothetical exercises. Almost by definition, unsustainable trajectories of deficits and debts will never actually transpire, because creditors would never be willing to lend to a country in which the fiscal debt relative to the national income is rising without limit. Herbert Stein, a wise economist, once said, "If something cannot go on forever, it will stop."  One way or the other, fiscal adjustments sufficient to stabilize the federal budget will certainly occur at some point. The only real question is whether these adjustments will take place through a careful and deliberative process that weighs priorities and gives people plenty of time to adjust to changes in government programs or tax policies, or whether the needed fiscal adjustments will be a rapid and painful response to a looming or actual fiscal crisis. [...]"  

"America on the brink of a Second Revolution" By Paul B. Farrell, MarketWatch  Link Fixed [10/06/10] "Commentary: 2010 elections guarantee gridlock, anti-capitalist class war. ...Political chaos will translate into extreme volatility and a highly unpredictable stock market. Result: Wall Street will lose another 20% of the value of your retirement portfolio in the next decade, just as Wall Street did the last decade. Stage 1: The Dems just put the nail in their coffin by confirming they are wimps, refusing to force the GOP to filibuster the Bush tax cuts for America’s richest. Stage 2: The GOP takes over the House, expanding its war to destroy Obama with its new policy of “complete gridlock,” even “shutting down government.”  Stage 3: Obama goes lame-duck.  Stage 4: The GOP wins back the White House and Senate in 2012. Health care returns to insurers. Free market financial deregulation returns. Stage 5: Under the new president, Wall Street’s insatiable greed triggers the catastrophic third meltdown of the 21st century Shiller predicted, with defaults on dollar-denominated debt. Stage 6: The Second American Revolution explodes into a brutal full-scale class war rebelling against the out-of-touch, out-of-control greedy conspiracy-of-the-rich now running America. Stage 7: Domestic class warfare is compounded by Pentagon’s prediction that by 2020 “an ancient pattern of desperate, all-out wars over food, water, and energy supplies would emerge” worldwide and “warfare is defining human life.” What’s behind our 2010-2020 countdown? It became obvious after reading the brilliant but bleak “Decadence of Election 2010” report by Prof. Peter Morici, former chief economist at the International Trade Commission. He sees no hope from America’s political parties, just a dark scenario ahead. Here are the 10 points we see in his message: Page 2 [...]"    Related:   "Paul Farrell Explains Why The Fed-Wall Street Complex Will Self Destruct By 2012" 

"Rachel Brown: New York Glass-Steagall Presentation" [10/06/10] Video clip [90:00]  "Rachel Brown gives a presentation on Glass-Steagall to an audience of 150 people in Queens, New York. [...]"   Rachel Brown has become the international spokeswoman in the fight for Glass-Steagall as a result of her campaign against Barney Frank during the Massachusetts primaries this year. On October 2nd, Rachel made her first appearance outside of Massachusetts since the elections to speak to an audience of over 150 people in Queens, New York about what is required to win the war against the British Empire. Basement Team researcher Aaron Halevy also presented an overview of the globally-extended NAWAPA project, which will be possible as soon as we in the United States win the fight for Glass-Steagall.

Government Sues 3 Largest Credit Card Companies Over 'Anticompetitive Rules' [10/05/10] "The Justice Department on Monday sued the three largest U.S. credit card companies for anticompetitive practices and reached a proposed settlement with two of them, MasterCard and Visa. "We want to put more money in consumers' pockets, and by eliminating credit card companies' anticompetitive rules, we will accomplish exactly that," Attorney General Eric Holder told an afternoon news conference. "The companies put merchants and their customers in a no-win situation" and "consumers are being held hostage." American Express Co. said it is willing to wage a multiyear fight against the federal lawsuit, arguing that the Justice Department's proposed remedy would promote steering customers from one payment network to another and "will do nothing to enhance competition." [...]"  

Charge: Ratings firms improperly aid China [10/05/10] "Major credit rating firms improperly help China avoid debt obligations by issuing false sovereign credit ratings, a complaint filed with regulators alleges. 

Wall Street Sees World Economy Decoupling From U.S. [10/05/10] "Wall Street economists are reviving a bet that the global economy will withstand the U.S. slowdown. [...]"  

"New York Fed Leveraged 71 to 1" [10/04/10] "... Commercial banks now have to file “living wills” under the new financial regulations, notifying regulators about how they intend to wind themselves down in event of catastrophic loss of capital so taxpayers don’t get stung with the tab. At a leverage ratio of 71:1, Grant writes, the New York Fed should be the first to be lining up executors and filing an end-of-life plan. Not only is the Federal Reserve system loaded down with $2 trillion in mortgage-backed securities, but it is likely to face increasing criticism from inflation hawks who see bad things flowing from “the unanticipated consequences of zero-percent interest rates, quantitative easing and improvisational central planning.” [...]"  

"Bernanke Knew Back in 1988 that Quantitative Easing Doesn't Work" [10/03/10] "ndeed, multiple lines of evidence demonstrate that quantitative easing helps the biggest companies, but not the little guy or the American economy as a whole. [...]"  

"Waiting for the Next Bankster Financial Meltdown" [10/02/10] [5:13]  "Dylan Ratigan Show--Sept. 30: "Inside Job" director Charles Ferguson takes an in-depth look at how "banksters" brought the nation to the brink of a collapse and why the government continues to let them do it. [...]"    

"The Essence Of The Banking Industry... The True Value of Conflict Is The Debt It Creates" [10/02/10] [1:42]  

Fed bank bailout program ends Sunday [10/02/10] "The $700 billion U.S. bank bailout program, approved during the financial crisis, is set to expire as officials begin a post-mortem appraisal, observers said. [...]"    

US Fed/Treasury Botch the Printing of New $100 Bill [10/02/10] "The government that hates gold has just announced that they have screwed up the printing of the new paper $100 bill. Burying the news on a Friday afternoon, the Federal Reserve Board announced a delay in the issue date of the redesigned $100 note, which was originally scheduled for 2-10-11. The Bureau of Engraving and Printing, a division of the Treasury, manufactures Federal Reserve notes and has identified a problem with sporadic creasing of the paper during printing of the new $100 note, which was not apparent during extensive pre-production testing, the Fed said. As a consequence, the Federal Reserve will not have sufficient inventories to begin distributing the new $100 notes as planned. [...]"  

Fraud Factories: Rep. Alan Grayson Explains the Foreclosure Fraud Crisis [10/02/10] [7:49]  "This is Rep. Alan Grayson explaining the crisis of foreclosure fraud and how it links to the entire securitization chain of Wall Street."

Federal Reserve to Become Largest Holder of U.S. Debt in Just Over a Month? [10/01/10] "Probably the most interesting thing in this week’s Fed balance sheet update is that Treasuries held by the Fed are now $812 billion, an increase of $7 billion from the week before, which those who follow the FRBNY’s almost daily POMO liquidity explosion know all too well. [...]"  Note:  I'd like to see the Fed default on itself.

Tension mounts as China and US trade insults over currency [10/01/10] "China has warned US lawmakers they are playing with fire by promoting a new law to impose trade sanctions on the country over their currency dispute.  [...]"   

Police probing death of Freddie Mac official [09/30/10] "The chief financial officer of money-losing mortgage giant Freddie Mac was found dead in his basement early Wednesday morning in what police said was an apparent suicide. David Kellermann, 41, apparently hung himself, said a law enforcement official familiar with the investigation. He asked not to be identified because the investigation was ongoing. Kellermann’s death is the latest in a string of blows to Freddie Mac since it was seized by the government last September. The company, which owns or guarantees about 13 million mortgages, has been criticized for financing risky loans that fueled the real estate bubble and are now defaulting at a record pace. [...]"   

Geir Haarde, Iceland Ex-PM, Indicted For Role In Financial Crisis [09/29/10] "Iceland's former Prime Minister Geir Haarde has been referred to a special court in a move that could make him the first world leader to be charged in connection with the global financial crisis. After a heated debate Tuesday, lawmakers voted 33-30 to refer charges to the court against Haarde for allegedly failing to prevent Iceland's 2008 financial crash – a crisis that sparked protests, toppled the government and brought the economy to a standstill by collapsing its currency. Haarde faces up to two years in jail if found guilty. The court, which could dismiss the charges, has never before convened in Iceland's history. A hearing date has not yet been set. Haarde, ex-leader of the Independence Party, is no longer in parliament and stepped down from office last year following widespread protests and treatment for esophageal cancer. "I will answer all charges before the court and I will be vindicated." Haarde, 59, told the Icelandic Broadcaster RUV. "I have a clean slate. This charge borders on political persecution."  [...]"    

Capital controls eyed as global currency wars escalate [09/29/10] "Stimulus leaking out of the West's stagnant economies is flooding into emerging markets, playing havoc with their currencies and economies. Brazil, Mexico, Peru, Colombia, Korea, Taiwan, South Africa, Russia and even Poland are either intervening directly in the exchange markets to prevent their currencies rising too far, or examining what options they have to stem disruptive inflows. Peter Attard Montalto from Nomura said quantitative easing by the US Federal Reserve and other central banks is incubating serious conflict. "It is forcing money into emerging market bond funds, and to a lesser extent equity funds. There has truly been a wall of money entering many countries," he said. [...]"  

World gripped by 'international currency war' [09/28/10] "The world is in the midst of an "international currency war" according to Brazil's finance minister as governments force down the value of their currencies to boost their struggling economies. The comments are the first public admission made by a senior policymaker about a practice which has become increasingly widespread since the global economic downturn. Many countries, notably China, have been deliberately weakening their currencies by selling them on foreign exchanges or keeping interest rates artificially low to make their exports cheaper. Economists fear that such moves are resulting in increasing currency volatility and instability. Increasing competition among individual countries to devalue also makes it harder to mount a co-ordinated policy response to the economic downturn, particularly amid fears of a renewed slowdown.  [...]"  

Banksters Inflate Speculative Food Bubble, U.N. Offers Global Governance Solution [09/28/10] "Never let a good crisis go to waste. The international bankers are taking advantage of the “food crisis” by driving up food prices in what is shaping up to be a classic case of a manufactured bubble. It is also looking like a clear model of  Problem- Reaction- Solution methodology. Create the food inflation problem (of course profiting all the way up), force an enraged reaction among the public, and take more sovereignty away with the solution of global food regulation. [...]"   

European Central Banks Halt Gold Sales [09/27/10] "The shift away from gold selling comes as European central banks reassess gold amid the financial crisis and Europe’s sovereign debt crisis. In the 1990s and 2000s, central banks swapped their non- yielding bullion for sovereign debt, which gives a steady annual return. But now, central banks and investors are seeking the security of gold. [...]"    

Credit Unions Bailed Out [09/27/10] "Two years after the peak of the financial crisis, the federal government swooped in to stabilize a crucial part of the credit-union sector battered by losses on subprime mortgages. Regulators announced Friday a rescue and revamping of the nation's wholesale credit union system, underpinned by a federal guarantee valued at $30 billion or more. Wholesale credit unions don't deal with the general public but provide essential back-office services to thousands of other credit unions across the U.S. The majority of retail credit unions are sound, but they will have to shoulder the losses through special assessments over the next decade.  [...]"  

Bank of America Debt Collectors Called Borrowers Vulgar Names to Get them to Pick up the Phone [09/27/10] "Bank of America has been busted using some seriously outrageous tactics to try to collect debts so small they're barely worth the paper they're written on. It wasn't until ABC News ambushed BOFA CEO Brian Moynihan Michael-Moore style outside his office that the firm finally responded by firing its debt-collection firm.  [...]"  Note:  Video included.

U.S. About To Drop Off The List Of the Top Ten Safest Credit Ratings [09/26/10] "According to CMA Datavision, the U.S. ranks below nine other countries in terms of the safety of its sovereign debt. Norway is #1 followed by Finland and Germany. Sweden and Hong Kong are new members of top ten list, displacing France and Belgium. [...] 

"Credit union cop to securitize $50 billion in assets" [09/25/10] "Regulators seized three corporate credit unions on Friday and will repackage about $50 billion in "troubled assets" to sell on the open market. [...]"  Note:  Since the assets are WORTHLESS, it's an open and shut case of fraud.

Interviews: "Doug Casey: Exception Among Equities" LINK FIXED Karen Roche, The Gold Report (TGR) [09/23/10] " [...] Americans have to learn that the government isn't "us." It's an entity that has its own interests, its own life, its own agenda. It views citizens as milk cows—or perhaps even beef cows—strictly as a means to its ends. "  [...] At the moment we're in an economic twilight zone or, if you wish, the eye of a hurricane. There is apparent stability in the economy. The stock market's high. The bond market's high. Only the real estate market is in visible trouble. Retail prices are level; they're not going up and maybe they're even going down in some cases. This is a temporary situation. We will inevitably—and soon—hit the other side of the storm. At some point those trillions of dollars created by the U.S. government—and many other governments around the world have created trillions of currency units—are going to have an effect. When will that be? The timing is uncertain. But I think it's going to be soon.  Note:  "As the world sinks deeper into what he calls the Greater Depression, Casey Research Chairman Doug Casey sees default on the U.S. national debt as inevitable— albeit probably in the guise of currency destruction. He anticipates further contraction in real estate, particularly on the commercial front. [...] If these things were perfectly predictable, it would be easier to dodge the bullet. This is an almost unique time in world economic history, and I think we're not only going to have economic consequences, but social and political consequences, and very likely military consequences. So hold on to your hat. "[...]  As to what's going to happen over the next few years, I feel confident that we've entered upon the Greater Depression in earnest. It will be an extended period of time when most people's standard of living drops significantly.[...] "

Global Research: "The Economic Crisis: Dollar Devaluation, Debt Default, Austerity and Growing Inflation" – Bob Chapman [09/23/10] ".... After January 2, 2011, America will have a lame duck president and a gridlock that will keep congress from creating any further damage. This will only be the beginning as people vent their anger at Wall Street and banking and its den of thieves. This tidal wave of rejection will really manifest itself when the elitist insiders in retribution collapse the stock and bond markets. Mark our words that will happen over the next few years, as will dollar devaluation and debt default. The ball has just started to roll and where it will all end up no one knows. The temple of the Federal Reserve and Wall Street could very well be doomed to destruction. The public now understands that Wall Street and banking own the Fed and they really make all the decisions and are the creators of all inside information. they profit on almost every trade. They cannot lose. They own the game. That is why for the last 18 months there has been an exodus of funds from the stock market to bonds, gold and silver and commodities. Naked shorting is rampant and the SEC and CFTC do nothing about it. Front running, known as flash trading, rigs every trade. More than 70% of trades are computer, black box driven by pros. Is it any wonder gold and silver hit new highs every day, Weiner & Waxman bring legislation to regulate coin dealers, when in fact they want to collect data on coin and bullion buyers. America has turned into a cesspool. [...]  The reaction of the public to this crime syndicate will be staggering. Glass-Steagall will return and the wall between brokerage, banking and insurance will be re-erected. The system will be stripped in a way that 1933 and 1934 could never imagine. The system will be purged of malinvestment and banks, brokerage firms and insurance companies that are now broke will be allowed to fail. No more two sets of books. The Fed is responsible for all this debt and failure. It all lies at the feet of those who control the Fed. These are the people who have deliberately collapsed the system for more profit and power and the imposition of their dream of world government. The illusion of wealth that the Fed foisted on the public is over and the public is not ready to fall for it again. The public realizes they and the system are insolvent and they are very unhappy about it. Any effort to revive consumption will be futile. Veiled and overt threats to the public and Congress, as we saw from Henry Paulson and more recently by Ben Bernanke, are not going to work. The public is spoiling for a fight and when that happens a fight is sure to ensue. If these malevolent creatures take down Wall Street and banking you can be sure Paris, On July 14, 1789 will look like a picnic. Our aristocracy had best heed the message or they’ll end up like the 300,000 who lost their heads so long ago. Hell hath no fury like an enraged mob. The elitists had better wake up and stop their games robbery and extortion. They have to come to an end. European bankers are terrified because they are equally broke. Their pursuit of austerity is commendable, but you do not raise taxes with 1% growth. This way you have austerity coming from both ends. This policy can only end in a very hard landing.  [...] " Note: Interesting and well-written summary of the current financial situation and what may come.

5 Outright Illegal Scams That Should Put Wall St. Bankers Behind Bars [09/22/10] "Unchecked greed and financial insanity on Wall Street crashed our economy. Much of that insanity was legal -- bankers lobbied hard for weak regulations, and got what they paid for. But much of that craziness was outright illegal, and in recent months, a number of shocking scams have come to light that could result in huge fines for banks or even put bankers behind bars. Though Wall Street has yet to see serious prosecutions for the current calamity, prosecutions are not at all uncommon after financial crises -- more than 1,000 bankers went to prison after the savings and loan debacle alone. From laundering drug money to scamming you on overdrafts, here are five recent Wall Street scandals that have "illegal" written all over them. The SEC is attempting to settle civil fraud charges it has filed in many of these cases, but in finance, the only difference between civil fraud and criminal fraud is the burden of proof. If the Justice Department wanted to go after many of these crooked dealers, it could. [...]"   

Vatican Bank Embroiled in Money-Laundering Probe [09/22/10] "Prosecutors also seized 23m euros ($30m; £19m) from the bank’s accounts with another smaller institution. The inquiry was launched after two suspicious transactions were reported to tax police in Rome. The Vatican said it was “perplexed and astonished,” and expressed full confidence in Mr Tedeschi. [...]"  Note:  The Vatican has another holy mess on its hands, this time of the financial sort, as the man in charge of the Holy See’s official bank, one Ettore Gotti Tedeschi, is under investigation as part of a a money-laundering case, according to the BBC. 

U.S. Debt Actually $200 Trillion? [09/21/10] " ... The actual figure of the US’ national debt is much higher than the official sum of $US13.4 trillion ($14.3 trillion) given by the Congressional Budget Office, according to analysts cited on Sunday by the New York Post. “The Government is lying about the amount of debt. It is engaging in Enron accounting,” said [...]" Mr Kotlikoff and Mr Moylan agree US national debt is much more than the official $US13.4 trillion number, but they disagree over how to add up the exact number.  Mr Kotlikoff says the debt is actually $US200 trillion.  Mr Moylan says the number is likely about $US60 trillion.  That is close to the figure quoted by David Walker, the US Comptroller General from 1998 to 2008.  He launched a campaign to convince Americans that the federal spending and debt is a greater threat than terrorism.   But whichever figure is accurate, all three agree that the problem has worsened in the last few years.  They say it is because Congress and the Administration, whether Republican or Democrat, consistently overspend. [...]"   

Globalists Push World Transaction Tax At UN Summit [09/21/10] "Globalists representing 60 nations will meet at the UN this coming week to push a tax on world financial transactions in the name of solving poverty and climate change, formally launching a massive program to bankrupt the middle class and enrich the coffers of global government. [...]"  Related: Global Tax Scam Shifts From Climate Change To Poverty [09/21/10] "As the science behind global warming becomes increasingly discredited and its proponents are exposed as eugenics-obsessed control freaks who care only about destroying freedom, the effort to make Americans pay a global tax has shifted from the justification of climate change to that of poverty. As we documented on Sunday, leaders from 60 nations will be meeting at the UN this week to push a tax on world financial transactions, formally launching a massive program to bankrupt the middle class and enrich the coffers of global government. Separately, the leaders of Spain and France are also now calling for new “financing sources” with which to build the infrastructure of a one world government. Remember, this has nothing to do with poverty. As the leaked Danish text revealed, global institutions such as the IMF and the World Bank have no intention of handing the money looted from American taxpayers to poorer countries, they will merely continue to keep the third world in bondage with crippling loans while withholding the real wealth for themselves. “We need to make more effort to look for alternative financing sources … that aren’t as vulnerable as the budgets of developed countries when faced with crises like the one we’re seeing today,” said Spanish Prime Minister Jose Luis Rodriguez Zapatero. “Both he and French President Nicolas Sarkozy called for some form of financial tax to raise money to combat poverty, an idea already rejected by the International Monetary Fund and many Group of 20 major developed and developing nations,” reports Reuters. Although climate change still gets a token mention in the call for a global tax, the justification of poverty has firmly overtaken it as the primary ruse via which globalists plan to conduct a massive transfer of wealth – not to poor nations – but to their own back pockets. As the recently leaked UN blueprint revealed, the elite are determined to use a global tax as just one of the weapons in their arsenal to dismantle the middle class of richer nations. [...]"  

"Fed Issues More Debt as Gold Rises" – Bob Chapman [09/20/10] "... The administration has done a very poor job over 21 months. One in seven Americans are in poverty, that is 14.3%. Child poverty has risen from 19% to 20%, and in the 18-64 year group it has jumped from 11.7% to 12.4%. This takes us back to the War on Poverty and the late 1950s. The current anticipated poverty rate increase has moved from 13.2% to 15%. Forty-four million of Americans are on food stamps and 45 million live in poverty. Wall Street and banking get bailed out, but no jobs are created for the average American.  The formation of the European Union and the euro zone have taught us that putting together different countries as a group does not work. This lofty failure has been exacerbated by free trade and globalization, a benefit of WTO, the World Trade organization. With all the huffing and puffing about recovery, second quarter euro zone growth was 1% and that was the highest in four years. Taxes were recently raised and the zone is now imposing austerity due to excessive debt, the result of which can only be depression. They figure paying the bankers is far better than assisting the economy and the public. Sovereign debt ratings are being cut, and Europeans are rushing to buy gold, silver and Swiss francs. The 10-year Swiss franc note is yielding a puny 1%. We guess the real question is can Europe and England be worse than the US? We do not know, but what we do know is it’s all bad. [...]"   

"Even the Little Guy Now Realizes that the Stock Market is Gamed, And Many Are Pulling Out Entirely" [09/20/10]  Note: It's the BOND market that runs everything, NOT the stock market: "TrimTabs notes that most of $592 billion taken out of money market mutual funds last year has gone into bond and bond-hybrid funds instead."

"Fort Knox Under The Microscope" - Gata on Fox [09/19/10] [4:56]  "Gata's Bill Murphy, surprisingly on FOX desribing the scams that the central banks have been perpetrating to rig gold markets and make the USD seem more valuable than it really is. The FED refuses to be audited, if they were....the game would probably be up. Large Central Banks and investment banks have held VERY large SHORT positions in gold keeping the prices down and manipulating them whenever it gets to high. [...]"  GATA Related:  Gold Plated Tungsten Bars- Biggest Financial Swindle In History? [6:16] Bob Chapman on the Tungsten Filled Bars [1:59] The IMF sold Gold plated tungsten bars to India  [33:31] 

Gold Rebounds, Dollar Plummets, Higher Inflation is on its Way... Bob Chapman [09/18/10] "... Presently banks have about $1.5 trillion in cash and corporate America about $2 trillion. Excepting major, highly rated corporations, banks haven’t been lending much over the past 16 months. When they attempted to lend over the past three months to better quality middle and lower tier companies not many wanted to borrow. The reason is that these businesses, that make up 70% of new jobs, don’t know what to expect from government, what taxation will be and when will employment increase. Public attitudes concerning debt and debt liquidation, home ownership, and spending are changing dramatically.  As a result, 25 million people are unemployed or forced to work part-time, workers are being forced to tap into retirement funds, cash value life insurance policies and savings. We believe higher inflation is on the way as money and credit are monetized and fiscal spending increases. That could lead to hyperinflation. That then would eventually be followed by a bursting of the bond and stock market bubbles, a loss of control by the Fed and the Treasury and massive deflation. In this latter scenario government stimulus would no longer be effective. This is what happened in the late 1930s and as a result we had another war. What we are seeing now is an exodus of investors from the stock market to bonds, commodities and gold and silver. Both CNBC and Bloomberg term the flight to quality to gold, silver and commodities as a craze. We ask why isn’t a flight to bonds a craze? This points up the duplicitous reporting and twisting in the major media. If you want an example of the direction we are headed, just look at Japan over the past 19 years. They have been in a rolling depression from which they have not been able to extricate themselves.  [...]"    

FBI Arrests Dozens in Raid on Massive New Jersey Bank-Fraud Ring [09/18/10] "Federal authorities in New Jersey charged 53 people today with participating in a massive bank-fraud ring that authorities say hijacked identities of overseas workers to bilk million from financial institutions. More than 270 local and federal agents - including from the FBI, IRS, Immigration and Customs Enforcement - fanned out across Bergen and Essex counties and Manhattan early this morning to arrest 43 of the defendants. Stretching from New Jersey to California to the South Pacific, the alleged scheme used Social Security numbers from Asian immigrants who worked in American territories, including Guam, to apply for driver's licenses under fake names, which they then utilized to secure credit cards and bank loans.  [...]"   

Warren picked to set up consumer bureau [09/18/10] Video clip "Former Harvard professor Elizabeth Warren was appointed a Special Assistant to the President Friday, giving her influence over the financial industry that lobbied against her. NBC’s Tom Costello reports. (Nightly News) [...]" Interview: Warren vows to fight for the middle class

FDIC Documents Indicate Treasury May Have Improperly Pressured Independent FDIC to Accept Bailout Deal [09/18/10] "Judicial Watch, the public interest group that investigates and prosecutes government corruption, announced today that an analysis of Federal Deposit Insurance Corporation (FDIC) documents indicates that officials from the Department of Treasury may have improperly pressured the independent FDIC to accept the bailout deal. Judicial Watch has pursued these FDIC documents, released in conjunction with a Financial Crisis Inquiry Commission investigation, for more than a year on behalf of former FDIC employee Vern McKinley. The documents are the subject of a Freedom of Information Act lawsuit (McKinley v. Federal Deposit Insurance Corporation, et al., Civil Action No. 09-1263 (ESH)). [...]" 

Keiser Report №78 – Markets! Finance! Scandal! [09/17/10] [26:41]  "This time Max Keiser and co-host, Stacy Herbert, look at the scandals of the 'living' dead centenarians collecting pensions in Japan and of Iceland's ex-premier defending his innocence against charges of 'economic recklessness.' In the second half of the show, Max goes to Detroit to talk global deflationary collapse with Nicole Foss of Automatic Earth. [...]"  Note:  A lot of really choice information in this clip, especially in the second half.   Related:  Automatic Earth: "Ilargi: We're looking at a society that's -seemingly- slowly and methodically being gutted to the bone. No matter what government and media pundits say, there's not one in s series of numbers like this that show any sign of improvement. If you think the stock markets represent the true state of American society, you got another one coming. With un-and underemployment hovering around 20% for most of 2010, and likely to stay there or get worse through 2011, there is not even the possibility of a recovery.  If some 20% of your work force is out of the loop, and don't forget most of them have dependents as well, with consumer spending making up 70% of your GDP, you're far more likely to be pulled further down in a swirling vicious feedback corkscrew loop than you are to receive a miracle U-turn from above. 

Revisiting American History - Financial Empire:  [09/17/10] [9:43]  "documents the conversion of the US into a monolithic financial empire as the Federal Reserve Act created a monopolized cartel of private interests, "Wall Street," that controls all money in the system. This killed Jeffersonian ideals and allowed vertical Hamiltonian forces to have free reign to consolidate power and wealth. It explains how this is an empire system where the top Wall Street banks are analogous to feudal lords and multi-national corporations are their feudal knights out conquering territories. It rewrites American History books. [...]"  Part 2 [8:17]| Part 3 [8:01]| Part 4.1 [7:56]| Part 4.2 [8:39] Part 4.3 [3:50]| Part 4.4 [9:14]| Part 5.1 [10:16]| Part 5.2 [9:51]  Part 6.1 [9:54]  Part 6.2 [9:22]  Part 6.3 [10:40] 

Cheng Siwei - "US has been Financially Irresponsible" [09/15/10] Video clip [2:10]  "HARDtalk speaks to the distinguished Chinese economist and former vice chairman of the Standing Committee of the National People's Congress Cheng Siwei.  [...]"    

"Onset Of Hyperinflation In As Little As 6 To 9 Months As Fed "Tap Dances On A Land Mine" [09/15/10] "John Williams, arguably one of the best trackers of real, unmanipulated government data via his Shadow Stats blog, has just released a note to clients in which he warns that hyperinflation may hit as soon as 6 to 9 months from today. With so many established economists and pundits seeing nothing but deflation as far as the eye can see, and the Fed doing all in its power to halt the deleveraging cycle, both in the open and shadow economies, what is Williams' argument? Read on. Incidentally, even if some fellow bloggers disagree with Mr. Williams' assessment, we believe it is in our readers' best interest to have them make up their own mind on this most critical economic development. [...] Systemic Turmoil is Unthinkable, Unacceptable but Unavoidable. Pardon the use of the Aerosmith lyrics in the opening headers, but the image of tap-dancing on a land mine pretty much describes what the Federal Reserve and the U.S. Government have been doing in order to prevent a systemic collapse in the last couple of years. Now, as business activity sinks anew, much expanded supportive measures will be needed to maintain short-term systemic stability. Such official actions, however, in combination with global perceptions of limited U.S. fiscal flexibility, likely will trigger massive flight from the U.S. dollar and force the Federal Reserve into heavy monetization of otherwise unwanted U.S. Treasury debt. When that land mine explodes — probably within the next six-to-nine months, the onset of a U.S. hyperinflation will be in place, with severe economic, social and political consequences that will follow. The Hyperinflation Special Report is referenced for broad background. The general outlook is not changed."  

  Senate defeats plan to strip filing requirement from health law [09/15/10] "The Senate on Tuesday defeated an effort to strip a controversial tax-reporting provision from the sweeping healthcare law Congress passed earlier this year. In a 46-52 vote, lawmakers killed an amendment sponsored by Sen. Mike Johanns (R-Neb.) that would have saved businesses and nonprofit groups from having to report an array of small and medium-sized purchases to the Internal Revenue Service. [...]"  Related: The 1099 Insurrection: The White House fights an effort to ease a burden on small business  "But this "tax gap" of unreported business income is largely a Beltway myth, and no less than the Treasury Department's National Taxpayer Advocate Nina Olson says the costs will be "disproportionate as compared with any resulting improvements in tax compliance." Most Democrats now claim they were blindsided and didn't understand the implications of the 1099 provision—which is typical of the slapdash, destructive way the bill was written and passed. As the critics claimed, most Members had no idea what they were voting on. Some 239 House Democrats voted to dump the 1099 provision in August, and the repeal would have passed except Speaker Pelosi rigged the vote procedurally so it needed a two-thirds majority. She thus gave Democrats the cover of a repeal vote without actually repealing it. [...]"  

"US Joint Forces Command Warns that Huge U.S. Debt Might Lead to Military Impotence, Default or Revolution" [09/14/10]  Note:  It's weird that these people can be so oblivious to the fact that the size of the debt exists partially because of the 'need' to fund the activities of the military, Pentagon and intelligence operations.

World Panel Backs Rules to Avert "Banking Crisis" [09/13/10] "Top central bankers and bank regulators agreed Sunday on far-reaching new rules for the global banking industry that are designed to avert future financial disasters, but could also dampen bank profits and strain weaker institutions. Officials confirmed that the panel of financial authorities from 27 countries had reached agreement Sunday afternoon and would release details later Sunday. The group includes Ben S. Bernanke, chairman of the Federal Reserve, and Jean-Claude Trichet, president of the European Central Bank. If ratified by the G-20 nations later this year, the rules, known as Basel III, will require banks to bolster the amount of low-risk assets they hold in reserve as a cushion against market shocks. While the American Bankers Association and other groups have complained about the provisions, other bankers said the rules will help avert crises of the kind that nearly plunged the world into depression in late 2008. [...]"    

 Commentary: "Handcuffs For Wall Street, Not Happy Talk" [09/13/10] "The Washington Post has published a very silly op-ed by Chrystia Freeland accusing Obama of unfairly “demonizing” Wall Street. Freeland wants to see Obama tone down his rhetoric and play nice with executives in pursuit of a harmonious economic recovery. The trouble is, Obama hasn’t actually deployed harsh words against Wall Street. What’s more, in order to avoid being characterized as “anti-business,” the Obama administration has refused to mete out serious punishment for outright financial fraud. Complaining about nouns and adjectives is a little ridiculous when handcuffs and prison sentences are in order. [...]"   

"Democrats Revolting Against Obama Albatross: Will They Push Through Glass Steagall in September?"  [09/13/10] "A senior U.S. intelligence source, with close ties to the Democratic National Committee, reported that a simmering revolt is underway, involving dozens of leading House Democrats, who are desperate to distance themselves from President Obama, in the remaining weeks before the November midterm elections. [...]"  Kesha Rogers: "Democrats Are Doomed Without Glass- Steagall" |  Rachel Brown Fires "Shot Heard 'Round the World" "In what could fairly be described as a "shot heard 'round the world," Democratic Congressional candidate Rachel Brown demolished long-time incumbent Rep. Barney Frank in a one-hour debate (4th district congressional district) on Barney's home turf, in Newton, Massachusetts, on September 7. Brown, 29 years old, a member of the LaRouche Youth Movement (LYM) running in her first campaign, handled the lying and blustering Frank — a self-proclaimed master debater — with a calm confidence, which rattled not only the befuddled Frank, but his controllers, who are losing their grip on the U.S. population.   Brown's actual target, in her pinpoint assessment of the crisis, was not just the hapless Frank, but the failed President himself, Barack Obama, and the forces of global finance, centered in the Inter-Alpha Group, for which both Frank and Obama are mere puppets. Her razor sharpness was not limited to identifying the problems associated with the two puppets, but was evident in her persistent presentation of the only alternatives which can save the U.S., i.e., her forceful advocacy of the LaRouche Plan, of removing Obama, restoring Glass-Steagall banking regulations, and implementing the great transformational infrastructure project for the 21st century, the North American Water and Power Alliance (NAWAPA).  [...]"  

Unusual Volume of Call Contracts Traded, Suspicion Rises [09/12/10] "The abnormally high volume of call contracts that were traded in the last few days is highly suspicious and should be investigated. Before 9/11 we saw the sell off of American Airlines stock and in the weeks leading up to the BP oil spill we saw the same with Goldman Sachs. While this could simply signify a buyout of Qwest by another entity, we can not rule out the possibility that this is a positioning play for a future false flag cyber attack, used to shut down the internet and move to what is known as the internet 2 system. The ruling elite have eagerly awaited the launch of the internet 2 system. They want nothing more then to implement the total systematic dismantlement of the internet to stop the flow of real information to the people of the world. Further research of the internet 2 reveals that Qwest has a big hand in this new system, a system that is intended to be a total and completely controlled, limited, and monitored form of the internet, allowing only massive corporate websites to operate on a subscription type basis. The internet 2 will be a glorified cable TV service, essentially letting you surf only what the government allows you to. [...]"    

UK: N.M. Rothschild & Sons Handles "Bailouts" of Bankrupt Inter-Alpha Group of Banks [09/12/10] "The London-headquartered N.M. Rothschild was hired by the Irish government to handle the "bailout" of its troubled banks, including both the bankrupt Anglo Irish Bank (which the Irish Finance Ministry has asked the EU for permission to shut down), and Inter-Alpha member Allied Irish Bank (AIB) [...]"  

Outlook Gloomy at Secret Billionaire Meeting [09/12/10] "For 25 years, legendary Wall Street strategist Byron Wien, now with The Blackstone Group, has held summer meetings with high net worth individuals to get their outlook on the global economy and investing. This year’s group, totaling fifty individuals and including more than 10 billionaires, was decidedly pessimistic on the U.S. economy, investment opportunities and the Obama administration.  “They saw the United States in a long-term slow growth environment with the near-term risk of recession quite real,” said Wien, in a commentary to Blackstone clients. “The Obama administration was viewed as hostile to business and that discouraged both hiring and investment. Companies and entrepreneurs were reluctant to add workers because they didn’t know what their healthcare costs or taxes were going to be.”  The strategist, whose “Ten Surprises” predictions for the New Year became required reading on Wall Street when he was at Morgan Stanley, declined to name the participants in this year’s two so-called benchmark lunches. However, the gatherings, which typically take place out on the eastern end of Long Island, have included in the past such investing legends as George Soros, Julian Roberson, and James Chanos, according to an account of one such lunch in 2007 by The Financial Times. [...]"   

 Commentary: U.S. Debt Is More Than All the Money in the World [09/11/10] "I have argued that the real national debt is about $130 trillion. Let’s say I’m being pessimistic. Forbes, in a 2008 article, came up with a lower number: $70 trillion. Let’s say the sunny optimists at Forbes got it right and I got it wrong.  For perspective: At the time that 2008 article was written, the entire supply of money in the world (“broad money,” i.e., global M3, meaning cash, consumer-account deposits, checkable accounts, CDs, long-term deposits, travelers’ checks, money-market funds, the whole enchilada) was estimated to be just under $60 trillion. Which is to say: The optimistic view is that our outstanding obligations amount to more than all of the money in the world.  Global GDP in 2008? Also about $60 trillion. Meaning that the optimistic view is that our federal obligations outpace the entire annual economic output of human civilization. So, John Boehner wants to roll spending back to where it was in the last year of the Bush administration. Okay, great. Nice start.  Now, what else have you got? [...]"    

"Why New Bank Capital Rules Could Make Things Worse" [09/11/10] "Investors will likely breathe a sigh of relief when international regulators reach an agreement on bank capital requirements this weekend.  Early reports suggest the required levels of capital will be much lower than feared, and the kinds of assets that can be used to meet the requirements more expansive than earlier proposals suggested. But there is good reason to worry that far from making the financial system sounder, Basel III may introduce even more systemic risk into global finance. The problem is inherent and probably unavoidable. Regulators want to achieve a world-wide harmony on bank capital rules. But by reducing the diversity of regulatory regimes, they inevitably increase the costs of regulatory error. [...]" Bank reserve mandate could see large shift  "International banking regulators in Basel, Switzerland, could agree on sweeping changes that would be felt by consumers and bankers, a U.S. trade group said. [...]" 

IMF releases new loan for Greece [09/11/10] "The International Monetary Fund (IMF) formally approves the second installment of a "rescue loan" to Greece.  Note:  Debt slavery.

U.S. Chamber Of Commerce Accused Of Tax Fraud  [09/11/10] "With a war chest rivaling that of the Republican Party itself, the U.S. Chamber of Commerce has emerged in the last year as perhaps the Obama administration’s most-well-financed rival on signature policy debates like health care and financial regulation.  Critics on the left have long complained about the chamber’s outsize influence. But now they are taking on the business association directly, charging in a complaint filed Friday with the Internal Revenue Service that it violated tax codes by laundering millions of dollars meant for charitable work from a group with ties to the insurance giant A.I.G.  The complaint was brought by a group called U.S. Chamber Watch, which was created four months ago — with the strong financial backing of labor unions — to scrutinize the Chamber of Commerce’s growing influence and provide a counterbalance. But chamber officials said they had complied with all tax laws and dismissed the complaint as a political ploy.  [...]"   

SEC conducting 'sweep exam' [09/10/10] "Documents reveal the U.S. Securities and Exchange Commission is conducting a far-reaching investigation of money managers who move client money to hedge funds. The investigation is called a "sweep exam," which means it is a broadly aimed review that aims to collect information, not a specific criminal case -- although what the SEC discovers could spark more specific investigations later, The Wall Street Journal reported Friday. Included in the investigation are questions concerning whether money management staffers made investments that were, essentially, private side bets that either paralleled or contradicted bets they were making on their clients' behalf. In the first phase of the investigation, the SEC is examining firms that manage $100 million to $15 billion in assets. In the past year, in the wake of the massive Ponzi scheme conducted by Bernard Madoff, who is now in prison, the SEC has revamped its examinations unit, placing former PricewaterhouseCoopers regulatory compliance partner Carlo di Florio in charge. Agency spokesman John Heine declined to comment on the sweep exam, the Journal said. [...]" 

"Bailout Barney" is Personally Sitting On, And Blocking, Glass-Steagall Revival [09/08/10] "As the U.S. economy and financial system continue to careen into the breakdown crisis, there are four pieces of legislation before the U.S. Congress — one in the Senate and three in the House of Representatives — which would revive FDR's Glass-Steagall provisions. [...]"   

Documentary:  “The Takedown of Glass-Steagall [09/08/10]   Video clip [82:00]  History of fascist banking empires vs. Roosevelt & Glass-Steagall Banking Act, Nixon ending the gold standard, how Alan Greenspan killed Glass-Steagall and shifted the industrial economy to the present financial service economy, how Rep. Barney Frank supported the Gramm-Leach-Bliley Act of 1999 and remains actively opposed to any re-enactment of Glass-Steagall. [...]"  Related: "Restore Glass-Steagall - Overview"  "The bankruptcy reorganization needed for our crumbling economic system today, which lies at the root of the LaRouche Plan, means removing all support for the Monetary system. All illegitimate debt claims on monetary assets of whatever form, will be canceled. The Glass-Steagall standard must be applied to all banking, and any bank engaged in deposit banking-functions will not be legally allowed to engage in speculation, and vice versa. No longer should purely fictitious monetary activity be financed; all financial activity must re-establish its functional relationship with those activities of the physical economy which define real economic value -- those activities which increase the productive powers of labor of our nation's workforce, the potential population density of our nation's territory, and the increase in technology and power available for our nation's manufacturers and farmers. This action, of bankruptcy reorganization, will free our national economy from the looming demise of the present system, and towards a more ideal configuration -- an economic system free from the disease of imperial monetarism. To that end, we have authored a resolution to be circulated and passed by local governments, sponsored and endorsed by policy makers and legislators, to identify a broadened call among the population and within institutions for a return to a legitimate economic system, and the intentions of our founding fathers.  [...]"  Note:  Glass-Steagall. The fascists hated it then, as much as they do now. Greenspan was responsible for policies supporting the shift from an industrial production economy to a financial services economy, and they didn't tell the population that were ruining everyone's lives. 

MSM: "US ' takes steps' against German-based Iranian bank" [09/08/10] "The United States has slapped sanctions on a German-based bank it accuses of helping Iranian institutions involved in illicit nuclear trade.  The Treasury Department announced Tuesday that it had taken steps against Europaeisch-Iranische Handelsbank that would isolate the bank from the U.S. financial system. Undersecretary for Terrorism and Financial Intelligence Stuart Levey calls the bank "a key financial lifeline for Iran" and says it has provided "financial services to Iranian WMD proliferators." The United States and Europe have been looking for further ways of pressuring Iran since the United Nations' Security Council passed international sanctions this year. [...]"  Note:  In earlier times, this would have been considered an act of war.

Afghanistan’s Kabul Bank Collapses, US Taxpayer Will Bailout Police and Afghan Army Payroll [09/07/10]  [1:47] 

Short Film: "Overdose – The Next Financial Crisis" NEW LINK [09/06/10] 3 Video clips "In times of crisis people seek strong leaders and simple solutions. But what if their solutions are identical to the mistakes that caused the very crisis? This is the story of the greatest economic crisis of our age, the one that awaits us.  [...]"  Related:  U.S. housing value down at least $4 trillion

A Public Pension Tsunami Approaches: The Beginning of the Great Deconstruction [09/06/10] "In the distant horizon, a giant wave is building. There are some who recognized the swell and raised the alarm. There are others who deny the possibility of such a wave. Most remain blissfully unaware. The wave is building and when it reaches our shores, it will hit with the force of a tsunami.  The wave is propelled by government spending and crested with unfunded pension obligations. The Pew Center on the States wrote in The Trillion Dollar Gap (February 2010), “A $1 trillion gap exists between the $3.35 trillion in pension, health care and other retirement benefits states have promised their current and retired workers as of fiscal year 2008 and the $2.35 trillion they have on hand to pay for them.”  Like any tsunami, the wave began long ago and very far out to sea. Thirty years ago the vast majority of union workers were in the private sector. Public employees in unions reached parity with private sector members by 2009. This was aided in part by campaign contributions from the unions to elect Democratic Party candidates and generous pay packages and retirement plans passed by those same politicians in return.  By 2010, the general public received a series of shocks. The first shock was the jobless recovery of the Great Recession that cost 8 million jobs. Most of the job losses occurred in the private sector yet the majority . [...] Related: Fury Over Public Pensions Sparks Disclosure Lawsuits 

Higher education bubble poised to burst [09/06/10] "Government-subsidized loans have injected money into higher education, as they did into housing, causing prices to balloon. But at some point people figure out they're not getting their money's worth, and the bubble bursts. A century ago only about 2 percent of American adults graduated from college; in 1910 the number of college graduates nationally was 39,755 -- smaller than the student bodies at many campuses today. [...]"    

Heavy in dollars, China warns of depreciation [09/06/10] "China on Friday offered a rare glimpse into its foreign exchange reserves, confirming that they are overwhelmingly allocated in dollars, while a central banker said the mountain of cash could face depreciation risks. The Chinese government's currency reserves, the world's largest such stockpile at $2.45 trillion, are held roughly in line with what was described as the global average: 65 percent in dollars, 26 percent in euros, 5 percent in pounds and 3 percent in yen. [...]"  

US denies taxpayer funds to bail out Kabul Bank [09/06/10] "The US Treasury Department denied media reports Saturday that American taxpayer funds would be put towards bailing out Afghanistan's beleaguered Kabul Bank. The White House said the allegations were not true and pointed to a statement from Deputy Treasury Secretary Neal Wolin that said the bank's troubles were "an Afghan issue." "They are taking immediate steps to ensure the stability of Kabul Bank and to protect the financial assets of the Afghan people," Wolin said. [...]"  Note:  No point in multiplying the illicit funds collected from the CIA, drug exports and other nefarious activitites ....

Commentary: "Why The Fourth Branch Needs To Be Abolished, And Why "Authority" Should Never Be Trusted" Tyler Durden [09/06/10] "Yesterday we presented Dylan Grice's thoughts on why economists and their opinions should be summarily dismissed as nothing but mere noise on the steep downward slope of a series of failed "authoritarian" policy decisions, which seek to validate one false choice after another, by presenting a hypothetical and fallacious counter-outcome as a certain reality (just consider the "apocalypse" we would be living in if Goldman had failed: of course, there is no justification for this except for what Bernanke et al claim is the one true alternative reality based on nothing but their own conflicted interests), which does nothing but discredit the "science" of economics more and more with each passing day. Yet in the grand scheme of things economists are merely pawns in the hands of the landed elite: the financial system set only on perpetuating the status quo of capital and wealth reallocation from the lower classes onto itself (until there is eventually nothing left), and a government whose only prerogative is to usurp ever more control and authority, until the entire system is one of central planning in economics, social affairs, religion, and every aspect of people's daily lives, all the while pretending to operate under the guise of a democracy, which, at least in America, died long ago. [...]"  

Panicked Afghans nearly collapse Kabul Bank after loan corruption scandal [09/04/10] "Branches of Kabul Bank across the country were crowded as anxious depositors joined hundreds of thousands of government employees queuing to collect their salaries, which were being paid through the bank on Saturday. The privately-owned bank has been the subject of reports alleging large-scale corruption by executives, though the government and central bank have said [...]"  

US:  Three Great Waves of Taxes Coming Beginning in 2011 [09/04/10] "In just a few months, on January 1, 2011, the largest tax hikes in the history of America will take effect.  They will hit families and small businesses in three great waves. [...]"  

CBS 60 Minutes: "2010-2012 deepening Banking Crisis - second wave of $1.5 trillion home loan defaults" [09/04/10]  Video clip [8:22]  

 Commentary: "Bernanke Admits He is a Lying Incompetent" [09/04/10] "In testimony before the Financial Crisis Inquiry Commission on September 2, Federal Reserve Chairman Ben Bernanke admitted that he is both incompetent and dishonest. [...]"   

Regulators Question If Market Manipulation Caused ‘Flash Crash’ [09/03/10] "The Securities and Exchange Commission is keeping a close eye on a stock market practice that may violate rules against market manipulation, the Wall Street Journal reported yesterday. The practice, called “quote stuffing,” happens when stock exchanges are flooded and, at times, clogged by huge numbers of buy and sell orders—orders that are ultimately cancelled.  Regulators are trying to determine if traders are using rapid-fire computerized trading systems to cause the inundation by design, purposefully gumming up the exchanges and giving traders an information advantage on small price movements in stocks. The Journal reported that the SEC is investigating whether quote stuffing may have been one of the causes of the May 6 “flash crash,” when the Dow briefly plunged 1,000 points in a matter of minutes.  To get an idea of the volume of quotes produced by high-speed, computerized trading, consider this: During the day of the flash crash, “there were hundreds of times that a single stock had over 1,000 quotes from one exchange in a single second,” according to Nanex, a ticker of quotes and trades. Or, for the visual learners out there, take a look at Nanex’s mesmerizing, time-delayed video clip that flashes all of the quotes for one stock, in this case Public Storage, in just one second.  If quotes from various exchanges clog the system, as the New York Stock Exchange admitted happened during the flash crash, some traders could profit. Nanex’s report explains why quote-stuffing could represent market manipulation:  [...]"   

Probe Circles Globe to Find Dirty Money [09/03/10] "A black-market financial investigation spreading from Iran to Sudan, London and Cuba began in a cluttered fifth-floor cubicle in an old-school district attorney's office in Manhattan featuring dark corridors and frosted glass. There, an intelligence analyst named Eitan Arusy began studying a slim lead. Suspicious money was flowing to and from an Iranian nonprofit operating in a Fifth Avenue office tower in Midtown Manhattan. Mr. Arusy's probe, later merged with a Justice Department inquiry, ultimately widened to some of Europe's vaunted banks, helping spark a global inquiry that found they actively evaded U.S. law in aiding sanctioned countries, banks or other enterprises move some $2 billion undetected. Nine banks have been caught up in the probe, and some are in discussions to settle, according to a person familiar with the case. Three have already. Last month, Barclays PLC in London agreed to pay $298 million and admitted to allowing payments on behalf of clients in Cuba, Sudan and other countries. Lloyds Banking Group in London and Credit Suisse Group in Zurich—banks that operated extensive transfer systems for Iranian clients—have agreed to settlements totaling $350 million and $536 million, respectively. [...]"  

Lehman CEO Blames Fed for Financial Crisis [09/03/10] "In a remarkable case of the pot calling the kettle black, Lehman Brothers' former CEO Richard Fuld pointed a finger at the US Federal reserve today, saying it worsened the financial crisis in September 2008. Testifying at a hearing, Fuld blamed the Fed for letting the investment bank fail. He said, “Only Lehman was denied that expanded access” that would have allowed for a more orderly wind-down of its business. Fuld continues to deny that the bank took too much risk and hid its true financial condition through off-balance-sheet financing. Also today, the FCIC released hundreds of emails and documents from the period leading up to the bank's collapse, which the FCIC chairman says reveal what appears to be a “conscious policy decision not to rescue” Lehman. In particular, the Financial Times notes an email from Chief of Staff Jim Wilkinson to then-Treasury Secretary Hank Paulson that read, “I just can’t stomach us bailing out Lehman. Will be horrible in the press. [...]" 

Moody’s Escapes SEC Lawsuit, Now Moves to Shield Itself From Liability [09/03/10] "Despite allegations that Moody’s Investors Service, one of the three major credit rating agencies, committed fraud when it failed to fix what it knew was an erroneous rating, the Securities and Exchange Commission announced on Tuesday that it wouldn’t sue the rating agency. It instead settled for a scolding, directed at ratings agencies generally. Historically, rating agencies have argued with some success that the First Amendment protects their ratings, but much of the examination done after the financial meltdown has cast blame on the agencies for caving into pressure from investment banks and compromising standards in order to preserve market share. It has also brought a string of lawsuits from investors and issuers alike. [...]"  

 Commentary: "The Slow Deliberate Collapse Created by The Fed" [09/03/10] "Almost two years ago the US Treasury was selling large amounts of short-term Treasury bills to fund bailouts and stimulus. That caused a major increase in debt. Most of that paper was 2-year bills and it is coming due for rollover shortly. While that transpires, October will report the annual fiscal deficit of 9/30/10 of about $1.5 trillion, a figure thought impossible just 1-1/2 to 2 years ago. This time around the Treasury will have to depend on the Fed and US banks and institutions to fund this mountain of paper. China has reduced its holdings of Treasury debt by about 6%, or by about $6 billion over ten months, or by about 10% or almost $100 billion over the past year or so. We know these figures are estimates because the Chinese government has the same trouble the US government has, it cannot discern truth from fiction. [...]"   Related: The Fed's Liquidity Trap: The American and world economies are in a deliberate state of slow collapse [09/03/10] "Almost two years ago the US Treasury was selling large amounts of short-term Treasury bills to fund bailouts and stimulus. That caused a major increase in debt. Most of that paper was 2-year bills and it is coming due for rollover shortly. While that transpires, October will report the annual fiscal deficit of 9/30/10 of about $1.5 trillion, a figure thought impossible just 1-1/2 to 2 years ago. This time around the Treasury will have to depend on the Fed and US banks and institutions to fund this mountain of paper. China has reduced its holdings of Treasury debt by about 6%, or by about $6 billion over ten months, or by about 10% or almost $100 billion over the past year or so. We know these figures are estimates because the Chinese government has the same trouble the US government has, it cannot discern truth from fiction. [...]"  Financial Backlash: "Quantitative Easing" Will Trigger Another Wave of Mergers and Acquisitions

Investors Spooked As Glitch Sends Gold to $3400 [09/01/10] "Investors were briefly panicked yesterday when the Yahoo Finance website indicated that gold had soared to over $3400 dollars an ounce, an instant jump of 175 per cent. Possible reasons for the shocking spike ranged from a simple mistake to a secret signal being communicated to insiders as to where the commodity was really heading. Just after 11am eastern time, the Yahoo Finance website gold graph indicated that the precious metal had jumped from $1235.60 an ounce to a whopping $3401.50 an ounce in the space of minutes. The commodity then quickly returned to its previous level almost immediately. The only event that could precede such a massive and instantaneous jump in gold would have to be something on the scale of a nuclear war or a sudden and total collapse of the U.S. dollar. Since the apparent glitch was only registered on the Yahoo website, many have attributed it to an in-house error. But that didn’t stop financial forums raging with speculation as to whether the snafu wasn’t some kind of hidden message being put out to insiders as to when gold will really hit such a level. [...]"  Note:  Well, if the total collapse of the dollar happened, the gold would be worth nothing, not $3400.

 Commentary: "The Poor Have No Chance of Joining the Rich, the Game is Rigged" [09/01/10] "Never have so few, done so little, and made so much, while screwing so many.  In 2005, the top 25 hedge fund managers "earned" $9 billion, or an average of $360 million. One year after a financial collapse caused by the financial innovations peddled by Wall Street, the top 25 hedge fund managers paid themselves $25 billion, or an average of $1 billion a piece. For some perspective, there were 7 million unemployed Americans in 2006. Today there are 14.6 million unemployed Americans. While the country plunges deeper into Depression, the barbarians pick up the pace of their plundering and looting of the remaining wealth of the nation. Bill Bonner and Lila Rajiva pointed out a basic truth in 2007, before the financial collapse. "On the Forbes list of rich people, you will find hedge fund managers in droves, but no one who made his money as a hedge fund client." - Mobs, Messiahs and Markets [...]"  

Oregon State Bank Proposed [08/31/10] "Recent headlines indicate that the State of Oregon faces another $1 billion in deficits. The trickle-down effect of the financial crisis that started with Wall Street banks has now come to all our Main Streets across Oregon.  Ironically, while Wall Street is handing out ever- bigger bonuses, State employees will be handed pink slips. In parallel, the private sector has handed out its own round of pink slips as unemployment sits at 10.6% (and almost 20% if one counts those who are off the roles but have given up trying to find employment.). Thus many will clamor for cutting more out of the State coffers, but we must remember that State employees shop at local stores, pay mortgages, get their hair cut and otherwise are an intricate part of the dance between the public and private systems that create Oregon. There’s no way to separate them….they are interdependent. So while cutting back on State expenditures looks effective, it is far less so when you factor in how that cuts back on private businesses too.  [...]"  Related: A Vision For State-Owned Banking in Wisconsin    

Satire: U.S. Economy Grinds To Halt As Nation Realizes Money Just A Symbolic, Mutually Shared Illusion [08/30/10] "The U.S. economy ceased to function this week after unexpected existential remarks by Federal Reserve chairman Ben Bernanke shocked Americans into realizing that money is, in fact, just a meaningless and intangible social construct. What began as a routine report before the Senate Finance Committee Tuesday ended with Bernanke passionately disavowing the entire concept of currency, and negating in an instant the very foundation of the world's largest economy. ....  As news of the nation's collectively held delusion spread, the economy ground to a halt, with dumbfounded citizens everywhere walking out on their jobs as they contemplated the little green drawings of buildings and dead white men they once used to measure their adequacy and importance as human beings.  At the New York Stock Exchange, Wednesday morning's opening bell echoed across a silent floor as the few traders who arrived for work out of habit looked up blankly at the meaningless scrolling numbers on the flashing screens above.  "I've spent 25 years in this room yelling 'Buy, buy! Sell, sell!' and for what?" longtime trader Michael Palermo said. "All I've done is move arbitrary designations of wealth from one column to another, wasting my life chasing this unattainable hallucination of wealth. "What a cruel cosmic joke," he added. "I'm going home to hug my daughter."  Sources at the White House said President Obama was "still trying to get his head around all this" and was in seclusion with his coin collection, muttering "it's just metal, it's just metal" over and over again. "The president will be making a statement very soon," press secretary Robert Gibbs told reporters. "At the moment, though, his mind is just too blown to comment. ... The realization that money is nothing more than an elaborate head game seems to have penetrated the entire country: In Wilmington, DE, for instance, a collection agent reportedly broke down in joyful sobs when he informed a woman on the other end of the phone that he had absolutely no reason to harass her anymore, as her Discover Card debt was no longer comprehensible. For some Americans, the fog of disbelief surrounding the nation's epiphany has begun to lift, with many building new lives free from the illusion of money. [...]"   

Economic Collapse is an INSIDE JOB - Movie Trailer [08/30/10] Video clip [2:19]  "From Academy Award® nominated filmmaker, Charles Ferguson ("No End In Sight"), comes INSIDE JOB, the first film to expose the shocking truth behind the economic crisis of 2008. The global financial meltdown, at a cost of over $20 trillion, resulted in millions of people losing their homes and jobs. Through extensive research and interviews with major financial insiders, politicians and journalists, INSIDE JOB traces the rise of a rogue industry and unveils the corrosive relationships which have corrupted politics, regulation and academia. Narrated by Academy Award® winner Matt Damon, INSIDE JOB was made on location in the United States, Iceland, England, France, Singapore, and China. [...]"   

Ex-UBS whistleblower hits out at ‘corrupt’ US justice [08/29/10] "Former UBS banker Bradley Birkenfeld hit out on Saturday against the "corrupt" US judiciary which sent him to jail even though he was the whistleblower who led to the US tax fraud case against the bank. "The Department of Justice's corruption is evident today -- why am I the only one in prison  [...]"   

Point the Finger: Congress Destroyed Banking [08/29/10] "Is there a group of people who you can point your finger and say with defined outrage, that they are the ones responsible for the economic depression we are in now? The answer is, yes. The answer is our own federal government and one law in particular. ‘Gramm – Leach – Bliley Act of 1999’ did many things, it gutted one very important depression era banking act, it amended the Banking Act of 1933 (Glass-Steagall Act) which forbid banking institutions from issuing,  speculating, and trading securities. Trading in securities is gambling in the sense that you are risking on an outcome with the investment of an asset or currency. When banks lose on their bad bets, such as valuation loss on created securities or stock declines, then the bank looses its minimum liquidity requirements and must be bailed out by the FDIC. From February 2007 to August 2010, there have been 292 bank failures requiring FDIC bailout to an accumulated tune of $69.5 billion dollars.  Why would congress write and enact a bill that removes such an important depression era financial safeguard? Several reasons, first, banking institutions wanted it and with $5 billion dollars worth of lobbyist effort and twenty years of persistence, got their wish. Second, congress thought that if they made banking exciting through the creation of a great whirling pool of cash, that it would create more jobs and money; well mainly money, then bailed out the bankers when their money pool ran afoul. Congress was locked into bailing out banks for if they allowed due process of FDIC reconstruction of the big banks, then the reason they went bankrupt would arise and indict congress for its participation. The system has been blinded by congress’s guilty heart, it obscures investigations, tosses snowball questions to perpetrators, appoints positions for those who participated, all while passing bailout funding with zero oversight. I am awed at the hardiness of the American Economy to continuously take blows from within the system and from without.  [...]" 

Beware That New Credit-Card Offer: Banks Flooding Consumers With 'Professional Cards' That Aren't Covered Under Reform  [08/28/10] Note: This should have been banned, as well. Bait and switch class scam.

America Facing Depression and Bankruptcy [08/28/10] "Twenty countries (including America) are headed into bankruptcy and more will follow. That brings up the subject of state debt in the US. America has been in an inflationary depression for 18 months. States have been cutting back for two years," but still face huge budget gaps required to be closed .... 2011 will be a terrible year (with) 80% of states expect(ing) deficits of more than $200 billion. 2012 looks even worse." Most worrisome, "there is no recovery and there never has been....the US economy and financial system is comatose." The worst is yet to come and will hit hard on arrival. [...]"   

Fed Ready to Dig Deeper to Aid Growth, Chief Says [08/28/10] "The Federal Reserve chairman, Ben S. Bernanke, signaled once again on Friday that the central bank was prepared to act if the economy continued to weaken, as yet another economic report confirmed that the recovery had slowed to a crawl.  [...]"   

Investigations: Banks’ Self-Dealing Super-Charged Financial Crisis [08/27/10]   "Over the last two years of the housing bubble, Wall Street bankers perpetrated one of the greatest episodes of self-dealing in financial history.  [...]"  Note:  Very well put together.  Related:  "A Crib Sheet on Wall Street’s Self-Dealing Money Machine"  ProPublica: by Marian Wang  "Last night, we published a story about self-dealing by the big Wall Street banks, cashing in on the world of structured finance. We know the subject matter is heady stuff, so together with our partners at NPR’s Planet Money, we’ve tried to make it as digestible as possible — with our first-ever cartoon, colorful charts (or “lovely chart porn,” as described by Barry Ritholtz), and an Auto-Tune song about the banks. Felix Salmon at Reuters, Ritholtz at The Big Picture and The New York Times’ Dealbook also have smart takes that you should be sure to catch. But for those of you who, unlike Felix Salmon, don’t care to read all the “juicy details” about the specific CDO names and narratives in the full story, we’ve pulled out some of the basic questions and answers right here. [...]"  

Analyst: Citigroup Is Cooking the Books [08/27/10] "An all-out war has broken out between Citigroup CEO Vikram Pandit and a prominent securities analyst who is saying that the big bank may be cooking the books by inflating its earnings through an accounting gimmick, FOX Business Network has learned. [...]"   

China Buys Euros as Fear of World Depression Grows [08/27/10] [7:11]  "The US Treasury has just announced that China’s official holdings of U.S. Treasury securities declined by about $30 billion between April and May of this year, from about $900 billion to some $868 billion. According to the US authorities, this means that Chinese holdings of US government paper are now at the lowest level in the past year. A 2% to 3% decline in a month does not qualify as massive dumping, but simply means that China is in the process of diversification. It is also very likely that China has more U.S. Treasury bonds than this official count would indicate, quite possibly through proxy purchases via Hong Kong and other places. With the sales of existing homes in the United States falling by 27% this morning, together with disastrous statistics regarding unemployment and foreclosures, it ought to be obvious that the US economy is in depression. Even experts interviewed on CNBC are beginning to wake up to this obvious fact. [...] On August 24, the Treasury’s two-year note reached its highest price in recorded history, meaning that the yield was at a record low. The entire world is piling into short-term U.S. Treasury paper, and many buyers cannot get enough. This makes a mockery out of the right wing reactionary refrain that the US equals Greece and soon will be unable to borrow. If, according to the crackpot Austrian theory, markets know things that individual humans cannot know, then surely the market is signaling a great desire for  Treasury bills and Treasury notes at the short end. The main reason for this demand is of course fear and panic – coming from the growing awareness that the world is indeed experiencing the second wave of a world economic depression of colossal proportions."   [...]  Related:  Commentary: It's Official: China is Unloading its Treasury Bonds  "It looks like the smart money these days is found in China. While American investors have been scrambling over each other to buy more Treasury bonds at historically low yields, China has begun quietly unloading some of its own enormous holdings. In June, the Middle Kingdom sold $21.2 billion of paper, reducing its net long to $839.7 billion. This is little more than 10% of the total $8.18 trillion in federal debt that Uncle Sam has outstanding. [...]"   

Fed Seeks Delay of Bank Data Release While Considering Appeal [08/27/10] "The Federal Reserve Board sought to delay the court-ordered release of documents identifying banks that might have failed without the U.S. government bailout while it considers an appeal to the U.S. Supreme Court. [...]" 

 Commentary: "The Most Fiscally Irresponsible Government in U.S. History" [08/26/10] "There is an instinctive conclusion among the American public that President Obama's stimulus package has failed to create a sustained recovery. Unemployment has increased, not declined; consumers have retrenched; housing starts have crashed along with mortgage applications; and there is a fear that a double-dip recession may very well be in the pipeline. The public perception, reflected in Pew Research/National Journal polls, is that the measures to combat the Great Recession have mostly helped large banks and financial institutions, and that's a view common to Republicans (75 percent) and Democrats (73 percent). Only one third of either political leaning thinks government policies have done a great deal or a fair amount for the poor.  There is another instinctive conclusion among the American people. It is that the national deficit, and the debts we have accumulated, are of critical political importance. On the national debt, the money the government has spent without the tax revenues to pay for it has produced mind-numbing numbers so large as to be disconnected from reality. Zeros from here to infinity. The sums are hard to describe; it is hard to describe an elephant, but you know one when you see one. The public knows that, shuffle the numbers as you may, the level of debt is unsustainable. [...]"    

Morgan Stanley Says Government Defaults Inevitable [08/25/10] "Investors will face defaults on government bonds given the burden of aging populations and the difficulty of securing more tax revenue, according to Morgan Stanley.  “Governments will impose a loss on some of their stakeholders,” Arnaud Mares, an executive director at Morgan Stanley in London, wrote in a research report today. “The question is not whether they will renege on their promises, but rather upon which of their promises they will renege, and what form this default will take.” The sovereign-debt crisis is global “and it is not over,” the report said.  Borrowing costs for so-called peripheral euro-region nations such as Greece and Ireland surged today, resuming their ascent on concern that governments won’t be able to narrow their budget deficits. Standard & Poor’s downgraded Ireland’s credit rating yesterday on concern about the rising costs to support nationalized banks.  Mares said debt as a percentage of gross domestic product is a false indicator of an economy’s health given it doesn’t reflect governments’ available revenue and is “backward- looking.” While the U.S. government’s debt is 53 percent of GDP, one of the lowest ratios among developed nations, its debt as a percentage of revenue is 358 percent, one of the highest, the report said. Conversely, Italy has one of the highest debt- to-GDP ratios, at 116 percent, yet has a debt-to-revenue ratio of 188, Mares said. [...]"  

LaRouche: "Brawls at the Fed, as the System Comes Down" [08/25/10] "A senior Washington intelligence source reported this morning that a serious fight has erupted inside the Federal Reserve over hyperinflation, and that people close to the Fed are going to be leaking details, which means the fight will intensify and become more public. [...]"   

Credit Card Debt Drops to Lowest Level in 8 Years [08/25/10] "The amount consumers owed on their credit cards in this year's second quarter dropped to the lowest level in more than eight years as cardholders continued to pay off balances in the uncertain economy. The average combined debt for bank-issued credit cards – like those with a MasterCard or Visa logo – fell to $4,951 in the three months ended June 30, down more than 13 percent from $5,719 in the same period a year ago, according to TransUnion. [...]"  

Fed loses court appeal to keep bailout details secret  [08/25/10] "Bloomberg News won another battle in its war to force the Federal Reserve to disclose details of its massive lending program during the financial system bailout. The full U.S. Court of Appeals in New York has refused to review a March decision by three of its judges requiring the Fed to release records of the $2 trillion in emergency loans it extended to banks and other institutions beginning in 2008. From Bloomberg: Unless the court stays its decision, the Fed will have seven days to disclose the documents. In the event of a stay, the central bank and the Clearing House Association LLC, an organization of 20 commercial banks that joined the Fed in defense of the lawsuit, will have 90 days to petition the Supreme Court to consider their appeal. The Clearing House has already said it will ask the high court to rule on the case. A Fed spokesman said the central bank was “considering our options.” Bloomberg sued the Fed in November 2008, arguing that the public has the right to know the names of the banks that borrowed from the agency, the amounts of the loans and what kind of collateral was posted.Bloomberg News won another battle in its war to force the Federal Reserve to disclose details of its massive lending program during the financial system bailout. The full U.S. Court of Appeals in New York has refused to review a March decision by three of its judges requiring the Fed to release records of the $2 trillion in emergency loans it extended to banks and other institutions beginning in 2008. From Bloomberg: Unless the court stays its decision, the Fed will have seven days to disclose the documents. In the event of a stay,  [...]"   

IMF recommends that the world adopt a global currency called the "Bancor"  [08/25/10] "Sometimes there are things that are so shocking that you just do not want to report them unless they can be completely and totally documented. Over the past few years, there have been many rumors about a coming global currency, but at times it has been difficult to pin down evidence that plans for such a currency are actually in the works. Not anymore. A paper entitled "Reserve Accumulation and International Monetary Stability" by the Strategy, Policy and Review Department of the IMF recommends that the world adopt a global currency called the "Bancor" and that a global central bank be established to administer that currency. The report is dated April 13, 2010 and a full copy can be read here. Unfortunately this is not hype and it is not a rumor. This is a very serious proposal in an official document from one of the mega-powerful institutions that is actually running the world economy. Anyone who follows the IMF knows that what the IMF wants, the IMF usually gets. So could a global currency known as the "Bancor" be on the horizon? That is now a legitimate question. So where in the world did the name "Bancor" come from? Well, it turns out that "Bancor" is the name of a hypothetical world currency unit once suggested by John Maynard Keynes. Keynes was a world famous British economist who headed the World Banking Commission that created the IMF during the Breton Woods negotiations. [...]" 

 Commentary: Wall Street Psycho: 15 Signs of Moral & Ethical Pathology, Soul-Sickness [08/24/10] "In The Battle for the Soul of Capitalism Jack Bogle no longer sees Adam Smith's "invisible hand" driving "capitalism in a healthy, positive direction." Today, his "Happy Conspiracy" of Wall Street plus co-conspirators in Washington and Corporate America are spreading a contagious "pathological mutation of capitalism" driven by the new "invisible hands" of this new "mutant capitalism," serving their selfish agenda in a war to totally control America's democracy and capitalism. The "Goldman Conspiracy" is the perfect B-School case study of Wall Street's secret contagious pathology, with insiders like Blankfein, Paulson and others pocketing billions more of the firm's profits than shareholders, evidence the new "mutant capitalism" has replaced Adam Smith's 1776 version which historically endowed the soul of American democracy as well as our capitalistic system. But sadly for America, Goldman's disease is rapidly becoming a pandemic spreading beyond Wall Street's "too-greedy-to-fail" banks, infecting our economy, markets and government, as it metastasizes globally. What are the symptoms of this growing "soul-sickness," this "pathological mutation of capitalism" Bogle fears? Recently we reviewed the consequences of this "soul-sickness." Today we'll edit and paraphrase news reports about fifteen symptoms spreading "soul-sickness" beyond the boundaries of this Goldman case study: These are the 15 signs of a moral pathology undermining not just banking, but American democracy and capitalism. [...]"  1. Gross denial of any moral damage caused by their rampant greed 2. Narcissistic egomaniacs with secret “God complexes”  3. Paranoid obsessives about secrecy, guilt and non-disclosure    4. Power-hungry need to control government using “Trojan Horses”  5. Borderline personalities who regularly ignore “conflicts of interest”    6. Pathological liars incapable of honesty even with own investors 7. Sole fiduciary duty to insiders, not investors, never the public   8. Moral issues are PR glitches, violations of “don’t get caught” rule  9. Charitable donations are tax and PR opportunities, not moral issues  10. When exposed in a massive fraud, feign humility, fake an apology   11. When bankruptcy threatens, bribe friends in “Happy Conspiracy” 12. Engage co-conspirators to cover-up, distract, do your dirty work   13. As money-hungry vultures, they will prey on vulnerable Americans   14. Treat everyone not in the “Happy Conspiracy” with “tough love” 15. Addicts blinded by greed: “Geezus would throw them out …” Note: Examples of each of these are provided, as well as other links.

Backlash with a Vengeance: Small Investors Pull $33 Billion From Wall Street Banksters [08/24/10] "Investors withdrew a staggering $33.12 billion from domestic stock market mutual funds in the first seven months of this year, according to the Investment Company Institute, the mutual fund industry trade group. Now many are choosing investments they deem safer, like bonds. If that pace continues, more money will be pulled out of these mutual funds in 2010 than in any year since the 1980s, with the exception of 2008, when the global financial crisis peaked. Small investors are “losing their appetite for risk,” a Credit Suisse analyst, Doug Cliggott, said in a report to investors on Friday.  [...]"  Related: Tony Robbins Economic Warning [15:00] LINK FIXED [08/24/10] "Tony Robbins, renowned success coach and motivational speaker shares an insight from some of the influential people he works with and why he believes a breakdown is underway."  Note:  Part 2 [8:58]

Commentary: Banks Siding Against the Customer in Fraud Cases [08/24/10] "Like most consumers, I had always assumed that banks and customers are united in wanting to curtail bank fraud. Unfortunately, I have learned that in fact bank fraud is a big and profitable business -- for the banks themselves; and that changes in electronic banking, combined with the power of lobbyists to sustain the status quo that is stacked against ordinary account holders, mean that if consumers' accounts are corrupted, they can face systemic stonewalling by the banks themselves -- and have little recourse. [...]"  

Credit Card Rates At Nine-Year High [08/24/10] "Interest rates continue to tumble for the U.S. Treasury, companies and home buyers alike. But for a large portion of 381 million U.S. credit-card accounts, borrowing rates have been moving only one way: up.  And average rates are likely to climb further in the near future. New credit-card rules that took effect Sunday limit banks' ability to charge penalty fees. They come on top of rule changes earlier this year restricting issuers' ability to adjust rates on the fly. Issuers responded by pushing card rates to their highest level in nine years.  [...]"  

US Said Preparing New Laws To Seize Americans Retirement Accounts [08/24/10] Note: Looking at the article, this wouldn't be a problem until after 2012. 

A Vision For State-Owned Banking in Wisconsin [08/23/10] "State-owned banks are finally being seen as a step in the right direction away from dependency on, and control by, the Federal government and its cohort, the private Federal Reserve. State-banking initiatives have now been undertaken in 14 states, with Wisconsin being a recent addition. The long-term goal of state-run banks is to end inflation, and reduce wars and business cycles by abolishing the Federal Reserve (and its unlimited supply of fake money), while allowing private mints to issue gold-backed, real currency. The short-term goal is to keep the profits and lending in the state to enhance local economic development. All states, except North Dakota, are subject to the rates and management judgments imposed by private banks. The states must deal with these banks for loans and other services just like any person. As a big customer, states pay many dollars in interest every year. Bonds are also a source of debt-financing. The Bank of North Dakota was founded in 1919 with the mission of "promoting agriculture, commerce and industry" in North Dakota. It was never intended for BND to compete with or replace existing banks.  Instead, Bank of North Dakota was created to partner with other financial institutions and assist them in meeting the needs of the citizens of North Dakota. Over the years, its fiscal responsibilities to the state have increased dramatically. Today, the Bank operates with more than $230 million in capital. The State of North Dakota began using bank profits in 1945 when money was first transferred into the General Fund. Since that time, capital transfers have become the norm to augment state budgets. It is important to look at the history of why exactly the state-run bank movement is so important, as well as the current conditions that indicate that a change of direction is essential for the survival of America as we know it.  [...]" 

 Commentary: Autumn in New York [08/23/10] ".... I have repeatedly commented in these pages that retirement had become impossible in America in principle. It takes some time for a principle to be actualized in reality, but gradually fewer and fewer people are making the decision to retire. The US News & World Report article makes it clear that we have passed the half way mark toward the society where retirement is impossible for most people. The reason is simple. To retire, your savings must grow, and the traditional way of doing this was by compound interest. But when the New Deal abolished the gold standard, it started to print paper money at a rate just about equal to the rate of interest. This, of course, means that you have been getting 0 real interest rate for the past 77 years. But at 0% interest money cannot grow, and this means that you cannot accumulate money for retirement.  Americans have responded by trying to make money for retirement by speculating in stocks. This is like making up for a cut in pay by beating your buddies in the Saturday night poker game. Speculating is a zero-sum game. Some may win, but an equal amount must be lost.  The myth is perpetrated today that the stock market always goes up. The stock market has gone up since 1933, but this has happened because the Fed stole money from bond (and other fixed income) investors to give it to stock speculators. FOR EVERYONE TO BENEFIT, NET WEALTH MUST BE CREATED. That is a point that the “Brain Trust” did not understand. Do you want to speculate in the stock market intelligently? Then watch the Fed. When the Fed eases credit and prints money, then stocks will go up (and bondholders will lose via the depreciation of the currency). When we are on the upswing of the commodity pendulum (as now), then be in gold or other commodities. When we are on the downswing of the pendulum, then be in stocks (or real estate). That is, in broad scope, the name of the game. [...]"  

US: New Credit Card Rules Go Into Effect [08/23/10] "New rules curbing credit card company shenanigans took effect on Sunday, as restrictions on “unreasonable late payment and other penalty fees” will now block the companies from charging excessive levies if users, to cite just one choice example, do not use their cards.  [...]"   

Op-Ed: "Appeasing the Bond Gods" Paul Krugman [08/22/10] "As I look at what passes for responsible economic policy these days, there’s an analogy that keeps passing through my mind. I know it’s over the top, but here it is anyway: the policy elite — central bankers, finance ministers, politicians who pose as defenders of fiscal virtue — are acting like the priests of some ancient cult, demanding that we engage in human sacrifices to appease the anger of invisible gods.  [...]"  Flashback: Paul Krugman Promotes Housing Bubble 

"Jump, You Fuckers!" (A Song For Wall Street) [08/22/10] [4:08]   "Open up the window, check out the view, and jump, you fuckers [...]"   

"Fannie and Freddie Can't Pay Feds Dividend As Part of Bailout Deal" [08/21/10] "these failed government agencies are in such bad shape that they can’t even pay Uncle Sam the dividends owed under the conservatorship deal reached two years ago. That’s right. In order to pay a $1.8 billion dividend on Treasury department stock, Fan and Fred had to borrow $1.5 billion from the Treasury. [...]"  

5 Trillion More Dollars to Fix "Fannie Mae" and "Freddie Mac"? [08/19/10] "Fannie Mae and Freddie Mac have become gigantic financial black holes that the U.S. government endlessly pours massive quantities of money into. Unfortunately, if the U.S. government did allow Fannie Mae and Freddie Mac to totally implode, both the mortgage industry and the housing industry in the United States would completely collapse. So essentially the U.S. government finds itself between a rock and a hard place. Prior to the financial crisis of the last few years, Fannie Mae and Freddie Mac were profit-seeking private corporations that also had a government-chartered mission of expanding home ownership in America. But now that they have been officially taken over by the U.S. government, they have become gigantic bottomless money pits. It is hard to even describe just how much of a mess Fannie and Freddie are in. However, the unprecedented intervention by Fannie Mae and Freddie Mac in the mortgage market over the past couple of years has been about the only thing that has kept it from plunging into absolute chaos. So what does the future hold for Fannie Mae and for Freddie Mac? Well, according to one estimate, it could take another 5 trillion dollars to "fix" Fannie Mae And Freddie Mac. [...]"  Note: So, what if  both the mortgage industry and the housing " industry" collapsed? It's a contrived parasitic 'industry' in the first place. Isn't it just as much a lie as the college-job dynamic, left over from the 1950's? See  Valedictorian Denouncing School and Jobs Scam [08/15/10] [9:27]   Related:  Barney Frank to Fannie: "Drop Dead"  "Barney Frank has been all over the airwaves this week with a clear and—we never thought we'd say this—perfectly sound message about Fannie Mae and Freddie Mac: "They should be abolished." In another sign that he's an avid reader of these columns, Mr. Frank even told Fox Business, "If we want to subsidize housing then we could do it upfront and let the budget be clear about that." That is certainly a more honest way to subsidize housing and makes us think we don't write in vain. [...]"   Video clip  [0:53]

Commentary: "The Purpose Behind Engineered Economic Collapse" [08/19/10] "Everyone loves money. Even people like myself who abhor the abuse of money and commerce, who understand the fraudulent nature of the system we live in, still work hard and save so that we might attain a sense of stability within that system. Many people see money as a focal point to their existence. But is it really money that they are after, or is it something else entirely? In truth, money represents ‘security’ in the minds of the masses. Money affords us the ability to survive, and the more of it we have, the safer we all feel. Because we subconsciously associate the extension of our very life with the variable health of the economic structure in which we live, we tend to become unwitting devotees to its continued existence, even if it is corrupt and condemned to failure. We gullibly deny the system or the currency that supports it is doomed to the contrary of all evidence because, even though it has beaten us bloody, we have never known anything else. In light of this entrenched way of perceiving things, especially in the U.S., it is difficult enough to convince some people that the economy is in fact not providing the security they desire, but is actually destroying their future completely. To explain to them that this is deliberate, that the economy is designed to self-destruct, that is another prospect altogether. Many people hit a proverbial wall on this issue because they simply cannot fathom that certain groups of men (globalists and central bankers) view money and economy in completely different terms than they do. The average American lives within a tiny box when it comes to the mechanics and motivations of finance. They think that their monetary desires and drives are exactly the same as a globalist’s. But, what they don’t realize is that the box they think in was BUILT by globalists. This is why the actions of big banks and the decisions of our mostly corporate establishment run government seem so insane in the face of common sense. We try to rationalize their behavior as “idiocy”, but the reality is that their goals are highly deliberate and so far outside what we have been taught to expect that some of us lack a point of reference. If you cannot see the endgame, you will not understand the steps taken to reach it until it is too late. [...]"  

Soros Bailing Out of U.S. Stock Market [08/19/10] "Billionaire trader and political manipulator, George Soros, is clearly not optimistic. The latest SEC filings are out on the Soros hedge fund, Soros Fund Management. Between the end of March and the end of June, Soros lowered his stock investments from $8.8 billion to $5.1 billion in the fund, Soros Fund Management. He sold most of his positions (over 95%) in Wal-Mart, J.P. Morgan Chase and Pfizer. [...]"  

US Says Bankruptcies Reach Nearly 5-Year High [08/18/10] "U.S. bankruptcy filings have reached the highest level since 2005, government data released on Tuesday show, as the economy slows and the unemployment rate hovers just below double digits. There were 422,061 bankruptcy filings between April and June, according to the Administrative Office of the U.S. Courts, up 9 percent from 388,148 in the prior three-month period, and up 11 percent from 381,073 a year earlier. [...]"  

China Slashes U.S. Government Bond Holdings by Largest Amount Ever [08/17/10] "China began reducing its holdings of U.S. government bonds again in June, and in fact cut just its holdings by the largest 1-month amount ever. The nation’s holdings of long-term Treasuries fell in June for the first time in 15 months, dropping by $21.2 billion to $839.7 billion, a U.S. government report showed yesterday.  [...]"   

The Most Debt-Laden Companies in the S&P 500 [08/17/10] "In recent months, numerous firms have been bolstering their balance sheets, but during the financial crisis, overleveraging was the kiss of death for many companies. Just as companies with zero debt on their books must be approached with caution , a company with a relatively heavy debt load isn’t necessarily in bad shape. [...]"  

Fixing the Economy with State-Owned Banks [08/16/10] [10:00]  "Ellen Hodgson Brown explains the rationale behind state owned banks. Due to the collapsing credit bubble which in turned popped the housing bubble, leading to recession, and perhaps, economic depression, there is not enough money and credit to keep the economy running. Three possible solutions are that the federal government issue debt-free money directly, that communities create alternate or community complementary currencies, or that a state create its own state owned bank, similar to the Bank of North Dakota. For example, a state owned bank in Michigan could provide credit to the state itself for infrastructure projects, help provide the capital for local banks, so they could in turn provide low interest loans to home owners, small and medium sized businesses, and students. In addition, a state owned bank could be used to help fund state expenses during tough times by providing loans. A major advantage of a state owned bank is that the state could borrow money from the bank at zero interest, for projects, saving between 50% and 100% of the cost of the project, since there would be no interest burden when repaying the loan. For Michigan, California, Florida, and other states looking to solve their economic problems, the state owned bank model, and the Bank of North Dakota in particular, should be studied in depth, as such a bank could provide the credit needed within that state economy during depressions and other tough economic times.  [...]" 

UAE Imports Five Tons of Fake Gold [08/16/10] "Several tons of gold imported into the UAE by traders and investors turned out to be fake on closer inspection, resulting in millions of dirhams in losses and high levels of stress to the victims. [...]"  Note: And people are supposed to 'feel' sad for these people? Somehow, I don't think so.  

"Endgame: The Monetary System of Empire" LaRouche [08/15/10] Video clip [17:58]  "The founders of the United States republic were aware of their legacy, of founding a new type of society, free from the control of a system of empire. It was that system of empire which had controlled all of civilization for thousands of years, and was a greater threat to the Americans during their revolution, than the canons pointed at Boston harbor. [...]"   Related:  Commentary: "We Have Reached the Turning Point" "... As of now, and as of what we had, so far this week, there is no question, but that the United States' economy, and implicitly the world economy, has now gone into the chain-reaction collapse, of the entire, present, world monetary-financial system. The economic system is not totally collapsed, but the financial-economic system, is now officially, in the state of collapse, which I forecast this year, for this period, the July-August period: It's now happened. There are still people who, in dreamland, imagine that it's not happened, or is not going to happen. But it's happened. The President is totally out of control. The economy, from the Presidency on down, is totally out of control. It's careening into a collapse, which threatens to become a chain-reaction, hyperinflationary collapse, if they continue the bailout process. There is no chance, in the meantime, that the United States will survive, if this President remains President. We're now, in the short term, that the very continuation of this President, as President, even within 30 days or so, that duration, could mean the finish of the United States. And a collapse of the United States, would mean a chain-reaction collapse of the entire world economy.  [...]"  

Hungary defies the IMF [08/14/10] "All bets are off between the IMF and the conservative Hungarian Prime Minister Viktor Orban. What's bitten the former golden boy of the Atlanticists for him to suddenly want to introduce taxes on financial profits when it would be easy to raise additional taxes on work? And what if Mr Orban is right, asks Jérome Duval. [...]"  

Trends: Capital Controls: The Final Phase in the Great Looting of America [08/13/10] "Instituting capital controls seems like the next big event in the government banking oligarchy's great looting of America. First, these vampires designed "free trade" agreements to use slave labor abroad at the expense of American jobs. Next, they moved their investment capital and assets abroad sucking the life-blood out of the U.S. economy. Then, they covertly used America's remaining wealth to prop up their bogus financial instruments like credit default swaps and derivatives, which came crashing down. Finally, they got their taxpayer bailout, and now they want your pension funds and cash deposits to stay under their control. This last stage of the mass looting requires your wealth to remain in their possession. They seem to be setting up several ways to control the remaining capital. One of the first tactics used by the banksters to control your money was to get the SEC to adopt a proposal to allow money market funds to suspend withdrawals during a financial crisis to prevent bank runs. As reported on ZeroHedge: [...]  A key proposal in the overhaul of money market regulation suggests that money market fund managers will have the option to 'suspend redemptions to allow for the orderly liquidation of fund assets.' Money Market funds, which account for nearly 40% of all investment company assets. The next time there is a market crash, and you try to withdraw what you thought was "absolutely" safe money, a back office person will get back to you saying, 'Sorry - your money is now frozen. Bank runs have become illegal.' [...] "    

The "Hindenburg Omen" Has Arrived -- Stock Market Crash Imminent? [08/13/10] " ... Granted, the Hindenburg Omen is not a guarantee of a crash, and the five criteria that must be met for a Hindenburg trigger typically need to reoccur within 36 days for reconfirmation. Yet the statistics are startling: "Looking back at historical data, the probability of a move greater than 5% to the downside after a confirmed Hindenburg Omen was 77%, and usually takes place within the next 40 days." The last Hindenburg Omen occurred during the lows of 2009. Today, we just had another (unconfirmed) Hindenburg Omen. It is time to batten down the hatches - something big is coming. As a reminder, the 5 criteria of the Omen are as follows: [...]  Today, all five conditions were satisfied. June 2008 was another such reconfirmed event, and as Barron's pointed out then, "there's a 25% probability of a full-blown stock-market crash in the next 120 days. Caveat emptor." Boy was the emptor caveating within 120 days (especially if said emptor was named Dick Fuld). Which brings us to the present: should the Omen be reconfirmed within 36 days, all bets are off."   

Pro-Publica: U.S. Bore AIG Bailout Risk, but Foreign Banks Reaped the Rewards, Says Watchdog [08/13/10] "Foreign financial firms indirectly reaped more than $14 billion in U.S. taxpayer dollars through Goldman Sachs alone after the U.S. Treasury bailed out AIG, according to the government’s bailout watchdog. That's just one example of how how the billions that the Treasury poured into the economy also bailed out foreign banks, according to a report released on Wednesday by the Congressional oversight panel. The report detailed how through Goldman Sachs, significant portions of the $70 billion that the Treasury committed to bailing out AIG has ended up in the hands of foreign investors. [...]"    

U.S. tax code encourages companies to rack up huge debt [08/12/10] "U.S. companies have had a long love affair with debt, and Washington has tacitly approved. Although the tax benefits are not the only driver of corporate America's preference for loans -- cheap rates and corporate strategy, as in Macy's case, are other major factors -- the tax code often tips the scales toward using debt for deals or for expanding a business.  Over the past generation, debt in America has exploded, becoming a way of life in nearly every sphere of society. And the tax code has been its handmaiden. Home buyers, towns and corporations all enjoy tax breaks that grow as they borrow more. Indeed, federal officials have found that the deductions for business debt are so generous that the government is, in many cases, essentially paying companies to borrow.  The surge in borrowing has opened new markets and financial industries. It has also at times powered economic growth -- for instance, the boom preceding the housing bust -- and activities that wouldn't have been possible under other conditions. Commercial developers build projects they otherwise wouldn't. Private equity firms are able to buy out companies with huge sums of borrowed money. Big banks that lend out all this borrowed money have come to play an outsize role in the economy. Debt in itself is not harmful, financial analysts say. But they also question whether the government should be prodding companies to borrow and favoring businesses that heavily rely on debt. "The tax code is interfering dramatically with the choice of how you finance and how you deliver returns in the corporate sector," said Douglas Holtz-Eakin, an economist who heads the American Action Forum. "Why would you build into the tax code a permanent bailout for corporate debt-financed investments?"  [...]"  Note: The Washington Post looks Macy's and beyond. 

Pro-Publica: Primer: Six Things Happening Right Now With Financial Regulation [08/12/10] "News about the Dodd-Frank financial reform legislation has come in smatterings. We’re well aware that there were people who weren’t impressed with its strength when it passed, and much of the bill leaves a lot still to be determined by regulators in subsequent rulemaking (By one law firm’s count [PDF], it requires 67 studies and 243 new rules to be created). And that leaves us with many moving parts, so here are a few—in motion right now—that pique our interest: [...]"   

Commentary: "Stock Market Tremors, Fed Pessimism, US Payments Deficit Presage Dollar Disintegration After Failure of US-UK Blitzkrieg Against Euro; Wall Street In Flight Forward Towards Iran War, Oil Price Spike To Prop Up Greenback" Webster G. Tarpley [08/12/10] [4:48]   

Commentary: "U.S. Is Bankrupt and We Don't Even Know It" Laurence Kotlikoff [08/12/10] Note: MSM musings, as time slips by ...

Student-Loan Debt Surpasses Credit Cards [08/11/10] "Bubble, bubble, toil and trouble: Look at overall inflation vs. college education inflation. Via: Wall Street Journal: Consumers now owe more on their student loans than their credit cards. Americans owe some $826.5 billion in revolving credit, according to June 2010 figures from the Federal Reserve. [...]"  

The Fed Has Admitted That It Has Totally Lost Control of the Crisis [08/11/10] "In its Aug. 10th meeting, where it escalated the hyperinflationary bailout, the Federal Reserve basically admitted that it has totally lost control of the financial crisis. With Kansas City Fed President Thomas Hoenig dissenting, the Fed vowed at the meeting to continue buying securities — reportedly, U.S. government debt — and reneged on its pledge to reduce it $1.4 trillion securities holdings—much of it mortgage-related toxic waste. The Fed will pour billions (up to $200 billion) of new non-existent money into buying new assets, because there is no recovery. Or, in their language, "the pace of recovery in output and employment has slowed." Hoenig, who had been the first of the Fed regional presidents to support reinstating Glass Steagall, opposed the Fed's reversal of its stated policy that it would bring down the $1.4 trillion in assets holdings by $200 billion. Another big bailout—with no need to ask the Congress or the American people—and another massive jump in hyperinflation. [...]"  Fed to Buy More of Its Own Debt [08/11/10] "Federal Reserve officials decided to reinvest principal payments on mortgage holdings into long-term Treasury securities, making their first attempt to bolster growth since March 2009 to keep the slowing U.S. economy from relapsing into recession.  [...]"  Note: And who says that's not convoluted?  Sounds like financial masturbation to me ... Bernanke announcement that central bank will buy US debt marks point of no return

‘Colbert Report’: "Wall Street Execs Are Like Drug Dealers" [08/11/10] Video clip "MSNBC’s Dylan Ratigan used to be on a show called “Fast Money” before he caught on that Wall Street’s big bankers were playing the people while they “paid themselves billions of dollars,” as he tells Stephen Colbert in this clip. Colbert, meanwhile, is relatively unimpressed by Ratigan’s rather obvious epiphany and wonders aloud, “Did you eat paint chips as a child?” [...]"    

"Criminals Wars and the Criminal Fed" [08/11/10] [5:22]  Ron Paul, interviewed on Andrew Napolitano's "Freedom Watch".

Trends:  Recession Causing a Banking Awakening in Tough-Hit Midwest [08/09/10] "A mass banking awakening seems to be happening throughout America, and the first pragmatic solution appears to be citizen-owned state banks. Since this model has been proven highly successful in North Dakota, many recession-ravaged states are now considering the idea of establishing state-run banks. [...]"   

Trends:  Fannie Mae, Freddie Mac losing political support as U.S. reshapes housing finance system [08/07/10]  "For several decades, whenever a question of housing policy came up in Washington, two companies dominated. Fannie Mae and Freddie Mac marshaled armies of lobbyists, deep political connections and millions of dollars in contributions to get their way. But now Fannie Mae and Freddie Mac, titans of the mortgage finance industry, are wards of the state, bailed out by Washington to the tune of $160 billion and banned from political activity. As the Obama administration and Congress prepare to take up overhauling the $12 trillion U.S. mortgage market, new interests are shaping the debate like never before.  [...]"  Note: So the "Freddies" will become defunct, and billions went to specific people, in the end. 

Trends: Berkshire net down 40 percent on derivative losses [08/07/10] "Warren Buffett's Berkshire Hathaway Inc (BRKa.N)(BRKb.N) said on Friday second-quarter profit fell 40 percent, as declining stock prices depressed the value of his derivative contracts [...]"  Note:  The chickens come home, and don't even roost.

Mossad Assassins Were Financed by U.S. Banks [08/06/10] "According to a Wall Street Journal report, U.S. Companies transferred funds to the assassins responsible for killing a senior Hamas leader. Mahmoud al-Mabhouh was found dead on Jan. 19 in a Dubai hotel room. He had been drugged, then suffocated. The botched assassination of al-Mabhouh has created a political scandal for Israel, and the ongoing investigation threatens to embroil the United States. Dubai authorities first released CCTV surveillance videos from the Dubai hotel where the murder occurred, then published photos and identifying information on 26 members of the hit team. At least twelve of the killers were Israeli citizens travelling with forged European passports. The discovery that the death squad used British, Irish, German, and Australian passports embarrassed the Tel Aviv regime, and caused the expulsion of Israeli diplomats from the UK, Ireland and Australia.  One man, “Uri Brodsky” has been apprehended in Poland. The state of Israel appealed to the Polish courts to have him extradited to Israel, but this was denied. Brodsky now faces extradition to Germany, and trial.  According to a Newsweek report, European investigators called Brodsky a high-level and experienced “facilitator” for the Mossad in Europe. The report also states that the individual known as ‘Brodsky’ used fraudulent documents to obtain a German passport in the name of “Michael Bodenheimer.” His real identity has not been determined. In March, Dubai police identified 13 US-issued debit-card accounts used by the suspects. These pre-paid debit cards were distributed by Payoneer Inc., and issued by Metabank, a subsidiary of Meta Financial Group Inc.  Although the company headquarters are listed as Storm Lake, Iowa, most of Metabank’s employees reside in Tel Aviv. The CEO of Payoneer is a man named Yuval Tal – a dual citizen of the United States and Israel, and a veteran of Israel’s Special Forces. In a 2006 FOX News interview, Tal was introduced as a “special ops commando”. The Israeli connections don’t end there. [...]"  Note:  Interesting report.   Video clip  [2:56]  

U.S. Freezes Iranian Assets [08/04/10] "The U.S. Treasury blacklisted 21 state-owned Iranian companies as part of a growing and coordinated international effort to undercut Tehran's ability to use units in Europe and Asia to facilitate financial transactions and weapons development. The Obama administration's point man in its financial war on Iran, Stuart Levey, also announced Tuesday U.S. sanctions against key leaders in Iran's elite military unit, the Islamic Revolutionary Guard Corps, as well measures targeting Iranian foundations accused of supporting militant groups in Lebanon, Afghanistan and the Palestinian territories. "As its isolation from the international financial and commercial systems increases, the government of Iran will continue efforts to evade sanctions, including using government-owned entities around the world," said Mr. Levey, Treasury's undersecretary for terrorism and financial intelligence. "Today's identifications will mitigate the risk that such entities pose." Treasury's moves mark the latest in an escalating response from the U.S., its overseas allies, and the United Nations to Iran's continued pursuit of nuclear technologies. Tehran says it is seeking to develop civilian nuclear power, but the U.S. alleges Iran is covertly developing atomic weapons. [...]"  Note:  That's pretty much an 'undeclared' act of war, I'd guess.  

Commercial real estate maturities will peak in 2012 – $350 billion in loans coming due and hundreds of additional bank failures [08/04/10] "What you see is a clear reduction in loans outstanding with BofA. At the same time, you see a massive increase in more investment activities. Wall Street has learned to leverage the easy money from the Federal Reserve to speculate on Wall Street instead of lending it out to Americans. [...]"   

"Son of Subprime" [08/04/10] "In 2007, the writing was on the wall. The famous "perfect storm" had gathered above the US housing market, its eye hovering over subprime loans. As you know, the storm came...and it rained, and rained, and rained... Ultimately, it washed away trillions of dollars in investor wealth. Now in an entirely different sector - probably the last place you'd look - the clouds are turning black once again. Strip out the finer details, and you'll find the very same mechanics that brought the subprime market from boom to bust: * Widespread investor acceptance * Complicated derivatives * Intense incentives for banks to make deals * Boneheaded assumptions of endless return on investment * Underqualified borrowers * Stunning amounts of leverage and debt * A loosely regulated multitrillion-dollar market * Overstated credit ratings from Wall Street * Social and political pressures to maintain growth This crisis-yet-to-be is... municipal bonds [...]"   

Geithner outlines regulatory priorities [08/03/10] "U.S. Treasury Secretary Timothy Geithner Monday outlined priorities for implementing domestic and international banking reforms.  [...]"  Note: This guy is dumber than a stone, and just a talking head ... many have commented that he doesn't even get 'economics 101' ... because he works for the banks, his position, as publicly maintained, is fraudulent and a criminal violation of their own laws ... but at this point, anyone can be 'appointed' by the delusional scum that has risen to the top.

Big Banks Fund Cluster Bombs [08/02/10] [2:53]  "Over ninety countries have promised to ban cluster bombs, whose mini explosives often fail to explode and lie like land mines for years. But campaigners say its the banks driving the trade now, with financial institutions showing few qualms about funding the world's weapon makers. [...]"  

Regulator issues 64 subpoenas to lenders [08/02/10] "A federal regulator issued 64 subpoenas to mortgage-lenders Monday, an attempt to find out if government-backed banks were deceived while buying securities. [...]"   

Europe’s class policy: A blank check for the banks, austerity for workers [08/02/10] "The same week that European officials announced the results of rigged bank stress tests, European Central Bank President Jean-Claude Trichet demanded that governments across the continent press ahead with austerity programs that will slash jobs, wages and social programs. [...]"  Note:  jobs, wages and social programs .... the society itself ... sounds like revolution is at hand ... to the bankers, overtly, people don't count. What if people withdrew their support ...

UK:  HSBC makes £7 Billion profit in just six months... then vows to hand its bankers £6 Billion in pay and bonuses [08/02/10] "Global banking giant HSBC unveiled bumper half-year profits of £7billion today - then outlined plans to hand more than £6 billion 'compensation' to its staff. But HSBC bosses immediately risked stirring public fury when they revealed that 'just over 20 per cent' of revenue had been allocated for pay and bonuses. [...]"  Note: HSBC is a parasitic criminal enterprise "sucking off the tit of the world".

A Modest Proposal To Transform the Fed into a Hamiltonian National Bank [08/02/10] "A very reliable source has proposed a plan to "reform" the Federal Reserve System into a Hamiltonian national bank. The proposal came in the context of discussion with Executive Intelligence Review about Lyndon LaRouche's proposal for the North American Water and Power Alliance (NAWAPA). [...]"  Note:  LaRouche is a brilliant man ... but he's on a world composed of stupid sequentials in charge ... who aren't listening.

 Commentary: The International Money Changers Reward the Euro for Forcing Austerity [07/31/10] "The Wall Street Journal reported Thursday that the Euro has reached an 11-week high against the dollar. This rise in strength comes just 3 months after the austerity measures were forced on the Greek people and the same steps being taken for the other PIGS (Portugal, Italy, Greece, and Spain). At the time, the global financial community debated whether the Euro would even survive because of fears that soveriegn debt of economically weak European Union member nations would destroy the Euro. Now that the International bankers got the austerity measures that they wanted, the money manipulators have rewarded them. The same game plan is playing out in the United States; ratchet up the rhetoric about debt and deficits with the veiled suggestions (threats) by the IMF for austerity, and then weaken the currency to a point where the body politic is forced to act on behalf of the banksters who manufactured the extreme over-leveraging. The growing noise for “solutions” to America’s very real debt problems is becoming louder as the calls for confiscating Social Security and Pensions are now everyday news. [...]"   

"IMF Says U.S. Financial System May Need Billions More" [07/30/10] "The U.S. financial system remains fragile and banks subjected to additional economic stress might need as much as $76 billion in capital, according to the results of International Monetary Fund stress tests. [...]"  Note: So those that run the IMF, which destroys and bankrupts nations, are also criminals in cahoots with Wall Street, the banks and the British monetary system. These 'stress tests' are just artificial constructions created to give the appearance of a 'filtering' effect, justifying whatever action is needed for consolidation of power and control. 

Europe Freezes Out Goldman Sachs [07/29/10] "Shocked by past deals with Italy and Greece, governments are excluding the Wall Street bank from sovereign bond sales. European governments are turning their backs on Goldman Sachs, the all-conquering investment bank that has suffered a series of blows to its reputation, capped by the biggest ever fine imposed on a Wall Street firm. According to data from Dealogic, Greece, Spain, France and Italy have all denied the bank a lead role in their recent sovereign bond sales. Last Thursday, Goldman agreed to pay a $550m fine to settle US regulators' claims that the bank misled investors in a mortgage-backed security. Goldman admitted that its marketing materials were incomplete, because they failed to state that the same third party that helped choose the assets had taken a bet against them. But governments have also been shocked at the emergence of past transactions between Goldman and Greece and Italy, where products the bank helped to sell aided both in hiding government debt. Greece, which used Goldman in a bond sale this year, is practically at war with the bank. A sharp contrast with the situation months before, when Goldman bankers dined with the prime minister in a private meeting overlooking the Acropolis. The relationship broke down, though, after news leaked earlier this year that Goldman was about to strike a bond sale deal with China's sovereign fund – which never materialised. [...]"  

The US Treasury Running on Fumes: The Obama regime has made War the Business of America [07/29/10] "The government cannot explain why the war is necessary, because it is not necessary to the American people. Any necessary reason for the war has to do with the enrichment of narrow private interests and with undeclared agendas. If the agendas were declared and the private interests being served identified, even the American sheeple might revolt. The Obama regime has made war the business of America. Escalation in Afghanistan has gone hand in hand with drone attacks on Pakistan and the use of proxy forces to conduct wars in Pakistan and North Africa. Currently, the US is conducting provocative  naval exercises off the coasts of China and North Korea and instigating war between Columbia and Venezuela in South America. Former CIA director Michael Hayden declared on July 25 that an attack on Iran seems unavoidable.   [...]"   

Smoking Guns of U.S. Treasury Monetization [07/29/10] "A significant feature of fiat money systems is the privilege for the custodian of the reserve currency to engage in regular practices of ham-fisted monetary management, even permission for fraudulent centers to flourish, surely developing a debt monster that an economy grows dependent upon. Fannie Mae might be the most offensive blight on such privilege. Unfortunately, many shenanigans have matured into grand fraud. They are smoking guns of USTreasury fraud and counterfeit, with strong whiffs of monetization. Much more monetization is to come, fully endorsed and sanctioned. Other clever techniques are being used, given the Quantitative Easing has officially been halted. A close look reveals that Excess Cash Reserves at the USFed are being drawn down, which are thus funding the USGovt deficits in the last couple months. Ironically, such reserves held by big banks at the US Federal Reserve were the only thing preventing vast insolvency. Now that cash is being used, and the USFed insolvency is slowly exposed. Details can be found in the July Hat Trick Letter reports. Evidence is compelling, and grand motive for foreign creditors to reject the USDollar, whose active control strings are traced to Wall Street. When recognized monetization destroys the last vestige of trust and confidence in the USDollar, when more official rounds of sponsored Quantitative Easing arrive, the USDollar will be on a downward spiral. In fact, all major currencies face the same prospect of vast monetary expansion. They will all fall sharply in value, and by counter-effect, the Gold price will rise powerfully. [...]"   

Failed Bank Disaster Largely Ignored by Mainstream Media [07/29/10] "Last week, bank failures quietly passed the 100 milestone for the year. I say “quietly” because the bank failure story has gone largely unreported or, at least, under-reported by the mainstream media. Just to give you an idea of how fast the bank insolvency problem is accelerating, last year, at this time, 64 banks had been taken over by the Federal Deposit Insurance Corporation. So far, this year, 103 banks have already been taken over by the FDIC. There is no question the bank failures the FDIC will have to deal with will be greater than the 140 insolvent banks closed last year. At this point, we just don’t know how many more, but dozens more than last year for sure.  [...]"   

Bankster Plot to Kill Off the Money Market Mutual Fund Industry [07/29/10] "Both the SEC and the President’s Working Group on Financial Markets (the Plunge Protection Team) are considering whether Money Market Funds should be forced away from their stable $1.00 value method of maintaining money market share prices. A move by regulators forcing money market funds away from the maintenance of the $1.00 price would cause huge hiccups in the industry and perhaps result in the end of the industry. At a minimum, it would cause huge withdrawals. That regulators are suddenly focusing on these funds and at the core element of their appeal is curious. Are the insider banks behind the idea in the hope that the money will flow to them? Does the government expect more of the money to flow into Treasury Bills (then already does0? Whatever is behind this focus, there is no legitimate reason behind an attempt at such a regulation. [...]"   

Corporate Fascism: SEC Exempt from Public Disclosure [07/28/10] "Under a little-noticed provision of the recently passed financial-reform legislation, the Securities and Exchange Commission no longer has to comply with virtually all requests for information releases from the public, including those filed under the Freedom of Information Act. The law, signed last week by President Obama, exempts the SEC from disclosing records or information derived from "surveillance, risk assessments, or other regulatory and oversight activities." [...]"  Note:  Is this to hide the SEC's failures? As you can see, Obama is a man of state command and control.

Goldman reveals where bailout cash went -- Banks Overseas [07/27/10] "Goldman Sachs sent $4.3 billion in federal tax money to 32 entities, including many overseas banks, hedge funds and pensions, according to information made public Friday night. Goldman Sachs disclosed the list of companies to the Senate Finance Committee after a threat of subpoena from Sen. Chuck Grassley, R-Ia. Asked the significance of the list, Grassley said, "I hope it's as simple as taxpayers deserve to know what happened to their money." He added, "We thought originally we were bailing out AIG. Then later on ... we learned that the money flowed through AIG to a few big banks, and now we know that the money went from these few big banks to dozens of financial institutions all around the world." Grassley said he was reserving judgment on the appropriateness of U.S. taxpayer money ending up overseas until he learns more about the 32 entities.  [...]"   

 Commentary: The Death of Paper Money [07/27/10] "As they prepare for holiday reading in Tuscany, City bankers are buying up rare copies of an obscure book on the mechanics of Weimar inflation published in 1974.  [...] Some might smile at the Bank of England "surprise" at the recent the jump in Brtiish inflation. Across the Atlantic, Fed critics say the rise in the US monetary base from $871bn to $2,024bn in just two years is an incendiary pyre that will ignite as soon as US money velocity returns to normal.  [...] "   

An A.I.G. Failure Would Have Cost Goldman Sachs, Documents Show [07/26/10] "Since the United States government stepped in to rescue the American International Group in the fall of 2008, Goldman Sachs has maintained that it would have faced few if any losses had the insurer failed. Though it was the insurer’s biggest trading partner, Goldman contended that it had bought credit insurance from financial institutions that would have protected it, but it declined to identify the institutions. A Congressional document released late Friday lists those institutions and shows that Goldman was exposed to losses in an A.I.G. default because some of the investment bank’s trading partners, such as Citibank and Lehman Brothers, were financially unstable and might have been unable to make good on large claims from Goldman. The document details every institution that had sold credit insurance on A.I.G. to Goldman as of Sept. 15, 2008, the day before the New York Fed arranged the insurer’s rescue with an $85 billion backstop. The document, supplied by Goldman Sachs, was released by Charles E. Grassley of Iowa, the ranking Republican on the Senate Finance Committee. Goldman had purchased credit protection on A.I.G. worth $402 million from Citigroup and $175 million from Lehman Brothers, the document shows. As of the date of the document, Lehman had already filed for bankruptcy protection. [...]" 

Continuing Wipeout of Cities' Services; Only Glass-Steagall Will Save Them [07/26/10] "The collapse of America's states, counties and cities is plunging the country into a Dark Age. As the cause is national and international, the only solutions begin on a national level, with Glass-Steagall. Looking for local causes is insane, but it is happening nevertheless. [...]"    

 Commentary: China: The US Is "Insolvent and Faces Bankruptcy"  [07/24/10] "... I think China is already diversifying their reserve portfolio, and more stealthily and effectively than one would imagine.  Further, I suspect that through the use of hedging short positions and derivatives such as Credit Default Swaps, China would be able to cover a greater portion of its reserves than the common mind might allow. And if this is in reality one theater in a global struggle for power, sacrificing a pawn or two, and even a bishop, would be a small price to pay to bring down the world's remaining superpower, as indirectly and gracefully as is possible. War is never cheaply waged.  It would most certainly be a nuclear option to outright dump Treasuries outright, and would raise the ire of what is still a formidable military power. But it is the Western mind that is so incapable of seeing the many shades of gray in every situation, the subtle gradations in a range of choices that I believe China not only sees but is already actively pursuing.  China is not the only country that resents the devastating frauds that the US has perpetrated on not only its own people but the rest of the world through its Wall Street banks and ratings agencies. Most Americans overlook this developing estrangement that is beginning to isolate the US and UK from even their traditional allies in Europe and South America and Asia. This is a serious error, but so typical of the short term mentality dominated by greed, dishonesty, and self-delusion that captured the American psyche in the latter part of The New American Century. [...]"   

 Trends: New York State Demands Billions From BofA and Merrill Lynch [07/24/10] "New York State Comptroller Thomas DiNapoli sued Merrill Lynch and Bank of America on Thursday, claiming that both companies knew that Merrill Lynch had tens of billions of dollars in unreported losses from the subprime mortgage meltdown. BofA shareholders, ignorant of the financial morass, authorized the $29.1 billion acquisition of Merrill Lynch, which quickly torpedoed profits, according to federal complaints. [...]" 

Financial overhaul completed, tax fight looms [07/24/10] Video clip included. "The temporary tax cuts that passed in 2001 and 2003 during the Bush administration are set to expire at year's end, and a battle is brewing over whether to renew them. Republicans want to make all the cuts permanent, but they haven't said how they'd pay for this in an era of record federal budget deficits. [...]"  

Finland targeted for EU/IMF austerity demands [07/24/10] "Last month, Finland was issued with a warning by the European Union commission over the size of its budget deficit, which is expected to rise above 4 percent of GDP this year. [...]" Note:  Perhaps there's a market for antler fuzz on the home world out there ...

Commentary: When will the SEC prosecute for market rigging? [07/23/10] "For thousands of years, gold has been a central monetary component of most civilizations. It is durable and has been able to retain its value even to this day. That, in and of itself, is extremely remarkable considering how many paper currencies that have went the way of the dodo. That is why the when Bill Murphy of GATA (Gold Anti-Trust Association) gave his testimony on April 9th before the CFTC (Commodity Futures Trading Commission), it may have been one of the most important testimonies in history for uncovering the massive fraud in today’s gold market. There are two central issues in today’s gold market: the massive short selling that artificially pushes the price down during certain option expiration periods and the paper ETF’s that are running a virtual ponzi scheme in the gold market. ... I would just like to make a comment. We are talking about the futures market hedging the physical market. But if we look at the physical market, the LBMA, it trades 20 million ozs of gold per day on a net basis which is 22 billion dollars. That’s 5.4 Trillion dollars per year. That is half the size of the US economy. If you take the gross amount it is about one and a half times the US economy; that is not trading 100% backed metal; it’s trading on a fractional reserve basis. And you can tell that from the LBMA’s website because they trade in “unallocated” accounts. And if you look at their definition of an “unallocated account” they say that you are an “unsecured creditor”. Well, if it’s “unallocated” and you buy one hundred tonnes of gold even if you don’t have the serial numbers you should still have one hundred tonnes of gold, so how can you be an unsecured creditor? Well, that’s because its fractional reserve accounting, and you can’t trade that much gold, it doesn’t exist in the world. So the people who are hedging these positions on the LBMA, it’s essentially paper hedging paper. [...]"   

Ron Paul vs. Ben Bernanke: Financial Services Hearing, July 22, 2010 [07/23/10] [8:30]  "Congressman Paul gives and opening statement and questions Ben Bernanke [...]"  

Geithner: Financial repeal 'inconceivable' [07/22/10] "A repeal of the Wall Street financial reforms, as argued by House and Senate Republicans, is "inconceivable," an Obama administration official says. [...]"  Note:  It would serve that little twerp right if it were repealed ...

LPAC Weekly Report [07/22/10] Video clip [67:15]  "Lyndon LaRouche appears on this week's report. [...]"  Note: Always interesting stuff. Nice update.

New Allegations in Madoff Case Against $1 Billion 'Enablers' [07/22/10] "One of Greenwich, Connecticut's wealthiest and most socially prominent financiers, Walter Noel, was accused today of "aiding, abetting, enabling and substantially participating" in Bernard Madoff's legendary Ponzi scheme. The allegations came in a complaint filed by the Madoff Bankruptcy Trustee against Noel and others who worked with him at the Fairfield-Greenwich investment fund, including one of his daughters and at least two sons-in-law. [...]"  

Mafia Money-Laundering Profits Swell in Credit Crisis [07/22/10] "The mafia has cranked up money laundering activities in Italy after the credit crunch prompted banks to stop lending, leaving a funding gap that criminal capital has filled, according to the Bank of Italy. “The crisis has given organized crime room to thrive because access to credit has become more difficult,” [...]"   

Bernanke Vows Fed Will Act If Uncertain Recovery Falters [07/22/10] "Federal Reserve Chairman Ben Bernanke said on Wednesday the U.S. economy faces "unusually uncertain" prospects, and that the central bank was ready to take further steps to bolster growth if needed. [...]"   

Commentary: Money Laundering and the Global Drug Trade Fueled by Capitalist Elites [07/21/10] "When investigative journalist Daniel Hopsicker broke the story four years ago that a DC-9 (N900SA) "registered to a company which once used as its address the hangar of Huffman Aviation, the flight school at the Venice, Florida Airport which trained both terrorist pilots who crashed planes into the World Trade Center, was caught in Campeche by the Mexican military ... carrying 5.5 tons of cocaine destined for the U.S.," it elicited a collective yawn from corporate media. And when authorities searched the plane and found its cargo consisted solely of 128 identical black suitcases marked "private," packed with cocaine valued at more than $100 million, the silence was deafening. But now a Bloomberg Markets magazine report, "Wachovia's Drug Habit," reveals that drug traffickers bought that plane, and perhaps fifty others, "with laundered funds they transferred through two of the biggest banks in the U.S.," Wachovia and Bank of America. The Justice Department charge sheet against the bank tells us that between 2003 and 2008, Wachovia handled $378.4 billion for Mexican currency exchanges, "the largest violation of the Bank Secrecy Act, an anti-money-laundering law, in U.S. history." "A sum" Bloomberg averred, equal to one-third of Mexico's current gross domestic product." Since 2006, some 22,000 people have been killed in drug-related violence. Thousands more have been wounded, countless others "disappeared," torture and illegal imprisonment is rampant. [...]"  Related: Wachovia Bank: Accused of laundering $380 billion in Mexican drug cartel money  | 

High cocaine levels present in Swiss water [07/21/10] "The waste water in Swiss towns contain surprisingly high traces of cocaine, according to a study by Bern University. Until now, only rough estimates have been possible of how much cocaine is consumed in Switzerland, based mainly on police seizures and anonymous questionnaires. According to those sources, cocaine consumption in Switzerland has increased exponentially over the past five years, with between 25,000 and 60,000 Swiss thought to take the drug every day. Now a pilot project conducted last year by a chemistry student at Bern University has produced more reliable data. Christoph Mathieu decided to write his dissertation on an analysis of the waste water of several Swiss cities: Zurich, Geneva, Bern, Basel and Lucerne. [...]"  Note: All those Swiss banks ...

Why The Healthcare Mandate Is Unconstitutional, If It Is A Tax [07/21/10] "In brief, the argument is: The tax is not an excise tax, and it could not be a constitutional excise tax because it is not uniform. The tax is not an income tax, and it could not be a constitutional income tax, because it is not a tax on derived income. Accordingly, the tax must be a capitation or direct tax. Article I, section 9 provides: ‘No capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein before directed to be taken.’ The tax is not apportioned, and therefore is contrary to Article I, section 9.” Related:  “Of Constitutional Decapitation and Healthcare” U.S. Politics: Changing Stance, Administration Now Defends Insurance Mandate as a Tax [07/18/10] "When Congress required most Americans to obtain health insurance or pay a penalty, Democrats denied that they were creating a new tax. But in court, the Obama administration and its allies now defend the requirement as an exercise of the government’s “power to lay and collect taxes.” And that power, they say, is even more sweeping than the federal power to regulate interstate commerce. Administration officials say the tax argument is a linchpin of their legal case in defense of the health care overhaul and its individual mandate, now being challenged in court by more than 20 states and several private organizations. [...]" Related:  Obamacare and "Unlimited Federal Power"  "One of the tragic aspects of modern America is how few of our citizens understand that the powers of the Federal government are limited and defined by the Constitution. Most people shrug and figure the government can do whatever it wants. Our ignorance becomes a self-fulfilling prophecy. Whenever the government illegally usurps power and we let them get away with it, another bad precedent has been set. It becomes legally okay for them to do it again in the future because they did it in the past. o where does Washington supposedly get its authority to justify Obamacare and so much else? Two sources are particularly cited: The Commerce Clause and the General Welfare Clause. [...]" Reagan: " Government is the Problem" [4:01]   Flashback: Obama Says "Mandate Not a Tax" SEPT 2009 [07/19/10] [5:44] 

Discussion of Glass-Steagall is Everywhere [07/21/10] "Contrary to those who might think that the passage of the Dudd-Frank bill has closed the question, the issue of the need for an immediate Glass-Steagall reform is hotter than ever, as people realize that it represents the only hope for getting out of looming disaster. [...]"  

 UK: Prime Minister Raids (Steals from) Dormant Accounts as Minister Attacks Banks [07/19/10] "U.K. Prime Minister David Cameron announced plans to use “hundreds of millions of pounds” from dormant bank accounts to fund community projects, while Business Secretary Vince Cable said lenders “ripped off” customers. [...]"  The new Office for Budget Responsibility forecasts that 490,000 public-sector jobs will be lost by April 2015. Cameron said he will press ahead with a proposal set out in the coalition government’s program to establish a “Big Society Bank” to finance moves by charitable groups and not-for-profit companies to take over jobs currently done by the government. 

Hungary Minister: IMF Talks Break Off On Lack Of 'Austerity' [07/19/10] "Hungary's talks with the International Monetary Fund and the European Union broke off Saturday as the government refused to implement fiscal austerity measures to reach this year's budget deficit "target", Economy Minister Gyorgy Matolcsy said Sunday. [...]"  Note: Good for them. Related:  In Ireland, a Picture of the High Cost of Austerity [07/19/10] "As Europe’s major economies focus on belt-tightening, they are following the path of Ireland. But the once thriving nation is struggling, with no sign of a rapid turnaround in sight. [...]"  Moody’s Cuts Ireland’s Credit Rating  "Ireland’s efforts to pull out of a deep economic slump suffered a setback Monday when a major credit agency downgraded the country’s bond rating, citing a weak banking system and rising debt." Note: Everyone could just tell the US-controlled IMF, who does what they do ONLY with an eye to 'save the western financial system', to take a hike ... 

Meet America's New Financial Regulators [07/18/10] "The day after the Senate passed President barack Obama’s Wall Street reform legislation, the financial industry’s representatives are combing through the legislation and trying to figure out exactly who their new regulators in Washington will be. There are a lot of changes in store, naturally. And while almost everyone following the debate is already familiar with the new Consumer Financial Protection Bureau, not many have heard of the Office of Financial Research, or do they realize that the law will eliminate the Office of Thrift Supervision. Here’s a handy guide to the new regulators: [...]" 

Tarpley: 'Obama, the Wall St. Puppet'   [7:18]  Related: Obama-Dodd-Frank FinReg Monstrosity Delays Derivatives Curbs until '2022' [07/18/10] "The Obama-Dodd-Frank financial regulation bill, a miserable excuse for real Wall Street reform, is now about to gain final approval in the Senate. This wretched bill is now supported by the New England liberal (meaning Wall Street) Republican clique including Olympia Snow, Susan Collins, and Scott Brown, who are joined by the notoriously corrupt reactionary Democrat, Ben Nelson of Nebraska. This bill will create a multitude of new regulations and a number of large new bureaucracies, but it is utterly devoid of any bright-line prohibitions against the causes of the financial panic which struck the United States in 2008, and which continues to the present day in the form of a world economic depression. The cause of the 2008 banking panic was that zombie banks and hedge fund hyenas were speculating with toxic and highly leveraged derivatives. The new bill does virtually nothing to attack the causes of this ongoing financial disintegration. It is a total defeat for the interests of the American people, and an historic victory for the Wall Street financier oligarchy which owns both the Democratic and Republican parties... [...]" See below. 

Commentary: Who pays for the new financial regulation bill? [07/18/10] "Obama celebrated the passage of the new financial regulation bill yesterday. So did Chris Dodd and Barney Frank. And why not? It’s not as though they’ll have to pay for the new bureaucracies and regulation imposed on the American financial system. For that matter, it won’t be the bankers, either. Who pays? Three guesses, and the first two don’t count: [...] This is so basic that people inside the Beltway never learn it. Costs imposed on businesses get passed to consumers. It doesn’t matter where those costs originate, whether they come from materials, labor, rent, taxes, or regulation. All of those figure into the price paid by consumers for the product or service provided." .... How will consumers get hit with these new regulations? Expect more fees on more transactions, including paying premium prices for doing business face to face with bank tellers and other employees. Banks will start demanding higher minimum balances and start charging higher fees on accounts that don’t make the cut. Bank of America will lose between $7 and $10 billion just on charges for debit and credit cards alone, money that will get made up by its customers somewhere. In short, the bill will erode consumer buying power, harm retirement accounts that rely on the performance of financial institutions, and create more unemployment. What exactly did we get in return for all of this? An expansion of the regulatory bureaucracy that spent more time watching porn than protecting consumers the first time around. [...]" Related: Banks Gearing Up for New Fees to Combat Lost Revenues "Big banks facing big drops in revenue are looking to Main Street to make up the difference. [...]" 

Dazed Congress Passes Wall Street Bill [07/17/10] "The Senate approved the meaningless 2,300-page "Dodd-Frank Wall Street Reform and Consumer Protection Act," sending it to be signed by a spooked, disintegrating President Obama. Wisconsin Sen. Russ Feingold was the only Democrat voting no, with three Republicans, the Cabot family's poodle Scott Brown and Maine's Senators Snowe and Collins, voting for the Obama travesty. [...]"   Related:  With passage of financial regulation overhaul, Geithner to inherit sweeping influence  "The dramatic expansion of financial regulation approved by Congress this week bears the stamp of no one more than Treasury Secretary Timothy F. Geithner and gives him vast powers to determine the final form of the new rules. Half a year after some pundits were predicting he would be booted from the Obama administration for poor performance, Geithner is poised to inherit authority to shape bank regulations, financial market oversight and a new consumer protection agency. Few treasury secretaries have ever had such sweeping influence over such a wide realm. The bill not only hews closely to the initial draft Geithner released last summer, but also anoints him -- as long as he remains treasury secretary -- as the chief of a new council of senior regulators. The legislation also puts him at the head of the new consumer bureau until a director is confirmed by the Senate, allowing Geithner to mold the watchdog in coming months. And it will be up to him to settle a raft of issues left unresolved by the bill -- for instance, which financial derivatives will be subject to the tough new trading rules and which risky activities big banks will be required to spin off. [...]"  Note:  If you fail in the private sector, you lose your job. If you fail as President of the New York Federal Reserve: you wind up as Treasury Secretary under Obama with increased power.  The Uncertainty Principle—II Only 30 times more complicated than Sarbanes-Oxley  "The Dodd-Frank financial reform bill passed by the Senate yesterday promises to generate historic levels of red tape. But apparently the 2,300 pages are so complicated that a debate has broken out over precisely how many new regulatory rule-makings it will require. This week we reported on an analysis by the Davis Polk & Wardwell law firm that at least 243 new federal rule-makings are on the way, not to mention 67 one-time studies and another 22 new periodic reports. The attorneys were careful to note that this was a low-ball estimate, counting only new regulations mandated by the bill. Now comes Tom Quaadman of the U.S. Chamber of Commerce, who doesn't quarrel with the Davis Polk estimate but has added rule-makings authorized by this legislation to those that are mandated and says that American businesses should expect a whopping 533 new sets of rules. To put this number in perspective, Sarbanes-Oxley, Washington's last exercise in financial regulatory overreach, demanded only 16 new regulations. Thus he reasons that Dodd-Frank "is over 30 times the size of SOX." [...]"   

AIG agrees to $725m fraud payout [07/17/10] "The US insurance giant AIG agrees to pay $725m (£474m) to settle a long-running fraud case against it [...]"   

Goldman Settles With S.E.C. for $550 Million [07/16/10] "Goldman Sachs has agreed to pay $550 million to the Securities and Exchange Commission, one of the largest penalties ever paid by a Wall Street firm, to settle charges of securities fraud linked to mortgage investments. The S.E.C. filed a lawsuit against Goldman in April, accusing the bank of securities fraud. The settlement came just days before Goldman is scheduled to report its second-quarter earnings. Under the terms of the deal, Goldman will pay $300 million in fines to the Treasury Department, with the rest serving as restitution to investors in the mortgage-linked security. Goldman will not admit wrongdoing, though it will admit that its marketing materials for the investment “contained incomplete information.” The Goldman Fraud Case GS logoDealBook’s full coverage of the Securities and Exchange Commission’s lawsuit against Goldman Sachs over a mortgage-related security.  Goldman will also change several business practices, including the way it draws up marketing materials for complex mortgage securities and the way it educates employees in that part of its business. The settlement must still be approved by Judge Barbara S. Jones of federal district court in Manhattan. Goldman’s stock price climbed more than $5 in the last half-hour of trading after the S.E.C. said its director of enforcement, Robert Khuzami, would hold a news conference late Thursday afternoon. “Half a billion dollars is the largest penalty ever assessed against a financial services firm in the history of the S.E.C.,” Mr. Khuzami said in a statement. “This settlement is a stark lesson to Wall Street firms that no product is too complex, and no investor too sophisticated, to avoid a heavy price if a firm violates the fundamental principles of honest treatment and fair dealing.” The focus of the S.E.C. case, an investment vehicle called Abacus 2007-AC1, was one of 25 such vehicles that Goldman created so the bank and some of its clients could bet against the housing market. Those deals initially protected Goldman from losses when the mortgage market disintegrated and later yielded profits for the bank. As the Abacus portfolios in the S.E.C. case plunged in value, a prominent hedge fund manager made money from his bets against certain mortgage bonds, while investors lost more than $1 billion. [...]"   

Wachovia Bank: Accused of laundering $380 billion in Mexican drug cartel money [07/16/10] "Too-big-to-fail is a much bigger problem than you thought. We’ve all read damning accounts of the government saving banks from their risky subprime bets, but it turns out that the Wall Street privilege problem is far more deeply ingrained in the U.S. legal system than the simple bailouts witnessed in 2008. America’s largest banks can engage in flagrantly criminal activity on a massive scale and emerge almost completely unscathed. The latest sickening example comes from Wachovia Bank: Accused of laundering $380 billion in Mexican drug cartel money, the financial behemoth is expected to emerge with nothing more than a slap on the wrist thanks to an official government policy which protects megabanks from criminal charges. Bloomberg’s Michael Smith has penned a devastating expose detailing Wachovia’s drug-money operations and the government’s twisted response. The bank was moving money behind literally tons of cocaine from violent drug cartels. It wasn’t an accident. Internal whistleblowers at Wachovia warned that the bank was laundering drug money, higher-ups at the bank actively looked the other way in order to score bigger profits, and the U.S. government is about to let everyone involved get off scott free. The bank will not be indicted, because it is official government policy not to prosecute megabanks. From Smith’s story: [...]"  

Dropping a dime on Treasury-Goldman chats [07/15/10] "The federal commission look ing into the causes of the financial meltdown has copies of phone logs documenting calls between Lloyd (Doing God's Work) Blankfein and Hank ("I Talk With People Doing God's Work") Paulson. The first guy, as you already know, is the head of Goldman Sachs. The second was the ever-chatty Secretary of the Treasury who seemed to make -- in my humble opinion -- an awful lot of phone calls to Blankfein, a man whose company could have benefited greatly from these conversations.  [...]"    

JPMorgan Chase Earnings Jump 76% [07/15/10] "JPMorgan Chase's (JPM) second-quarter earnings rose 76% to easily top Wall Street estimates as lower losses on bad loans more than made up for a slowdown in its securities trading and underwriting business, the nation's second-biggest bank by assets said Thursday. [...]"  

Alan Greenspan's 1984 Pamphlet [07/15/10] Video clip [12:38] "Alan Greenspan was one of the key ideologues responsible for the threat to civilization today. Disguised as an "economist", his policy initiatives threaten to destroy the nation-state system. His hatred of FDR is a useful focus to understand what motivated his actions as Federal Reserve Chairman. Alan Greenspan released the pamphlet "Rethinking Glass-Steagall", declaring his hatred of FDR's insight into the nation-state principle. Greenspan had unique insight on how to destroy this idea, and did exactly this, culminating in the 1999 repeal of Glass-Steagall. [...]"  Related:  Review: Who Killed the Glass-Steagall Act? [07/14/10] [11:00]  "The Glass Steagall Act President Roosevelt signed into law was repealed. See who swept aside the banking firewall protections on the 12th of November 1999. The Gramm-Leach-Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999, is an act of the 106th United States Congress (1999-2001), signed into law by President Clinton which repealed part of the Glass-Steagall Act of 1933, opening up the market among banking companies, securities companies and insurance companies. The Glass-Steagall Act prohibited any one institution from acting as any combination of an investment bank, a commercial bank, and/or an insurance company. The Gramm-Leach-Bliley Act allowed commercial banks, investment banks, securities firms and insurance companies to consolidate. [...]"   

Goldman Sachs, Citigroup Sued Over Subprime Loans [07/14/10] "Goldman Sachs Group Inc., Citigroup Inc., Morgan Stanley and dozens more bank and brokerages were sued by a Boston area-based fund seeking reimbursement for losses related to subprime loans.  Cambridge Place Investment Management Inc., founded by ex- Goldman Sachs Group bankers Martin Finegold and Robert Kramer, lost more than $1.2 billion as a result of the banks’ untrue statements, according to a copy of the complaint filed July 9 in state court in Massachusetts.  The banks sold securities backed by mortgages that came from a “small group of now notorious subprime mortgage originators,” used faulty appraisals, accepted misleading information in loan applications, and violated their own standards for underwriting, the firm said in the lawsuit. The banks offered or sold $2.4 billion of residential mortgage- backed securities using untrue statements, according to the lawsuit.  “The Wall Street banks conducted inadequate due diligence and failed to satisfy their own responsibilities,” Cambridge Place said in the lawsuit.  The bundling of the riskiest type of mortgages into securities played a role in turning the U.S. housing slump into a global recession as foreclosures deflated bond values and toppled Wall Street firms including Lehman Brothers Holdings Inc. [...]"  Note: So, it's Fingold & Kramer vs. Blankfein ... battle of the Schmucks ..   Related: Goldman, BP sued over alleged SemGroup conspiracy  "The law firm McKool Smith announced the lawsuits by the Kansas, Oklahoma and Texas producers against Goldman's J. Aron & Co unit, BP Oil Supply Co and other defendants. It said the lawsuits were filed in Kansas and Oklahoma state courts. The complaints... [...]"    

International Monetary Fund: Next-Social Security? [07/14/10] " ... Last week, the IMF told the United States that it needs to start getting its budget deficit down. It put cutting Social Security at the top of the steps that the country should take to achieve deficit reduction. This one is more than a bit outrageous for two reasons. First, the IMF deserves a substantial share of the blame for the economic crisis that gave us big deficits in the first place. The IMF is supposed to oversee the operations of the international financial system. According to standard economic theory, capital is supposed to flow from rich countries like the United States to poor countries to finance their development. In other words, the United States should be having a trade surplus, which would correspond to the money that we are investing in poor countries to finance their development. However, the IMF messed up its management of financial crises so badly in the last 15 years that poor countries decided that they had to accumulate huge amounts of currency reserves in order to avoid ever being forced to deal with the IMF. This meant that capital was flowing in huge amounts in the wrong direction. One result of this reverse flow was that the United States ran a huge trade deficit instead of a trade surplus. The trade deficit in the United States was a big part of the story of the housing bubble. The trade deficit cost millions of workers their jobs. This was one of the main reasons that economy was so weak coming out of the 2001 recession. This weakness led the Fed to keep interest rates at 50-year lows, until the growth of the housing bubble eventually began to generate jobs in the fall of 2003. The IMF both bears much of the blame for the imbalances in the world economy and then for failing to clearly sound the alarms about the dangers of the bubble. While the IMF has no problem warning about retired workers getting too much in Social Security benefits, it apparently could not find its voice when the issue was the junk securities from Goldman Sachs or Citigroup that helped to fuel the housing bubble. The collapse of this bubble has not only sank the world economy, it also destroyed most of the savings of the near retirees for whom the IMF wants to cut Social Security. The vast majority of middle-income retirees have most of their wealth in their home equity. This home equity largely disappeared when the bubble burst. Maybe the IMF doesn’t have access to house price series and data on wealth, because if they did, it’s hard to believe that they would advocate further harm to some of the main victims of their policy failure. The other reason that the IMF’s call for cutting Social Security benefits is infuriating is the incredible hypocrisy involved. The average Social Security benefit is just under $1,200 a month. No one can collect benefits until they reach the age of 62. By contrast, many IMF economists first qualify for benefits in their early 50s. They can begin drawing pensions at age 51 or 52 of more than $100,000 a year. This means that we have IMF economists, who failed disastrously at their jobs, who can draw six-figure pensions at age 52, telling ordinary workers that they have to take a cut in their $14,000 a year Social Security benefits that they can’t start getting until age 62.   [...]"  Related: IMF Spells out Conditionalities--For U.S.A.   "With the full approval of the Obama Administration, the IMF just completed a mission to the United States, and produced a June 21st report, promoting murderous Schachtian austerity measures. It is clear that the so-called Simpson-Bowles austerity commission, created by an Obama Executive Order earlier this year, is nothing but a PR front for policies already written at the IMF. [...]"  

U.S. Subpoenas 64 Issuers of Mortgage Securities [07/13/10] "A federal regulator said it sent 64 subpoenas to issuers of mortgage-backed securities in an effort to probe whether the firms misled Fannie Mae and Freddie Mac, two of the biggest investors in privately issued bonds. The subpoenas, issued on Monday by the Federal Housing Finance Agency, which oversees the government-backed mortgage titans, could lead the government to recoup some of the billions of dollars that Fannie Mae and Freddie Mac lost when they scooped up mortgage-backed securities issued by Wall Street banks during the housing boom. The FHFA didn't disclose its targets. But the top private issuers of mortgage securities included Bear Stearns Cos. and Washington Mutual Inc., which were taken over by J.P. Morgan Chase & Co., as well as Countrywide Home Loans and Merrill Lynch, which were taken over by Bank of America Inc. Deutsche Bank AG and Morgan Stanley were also among the top issuers. All the banks declined to comment. [...]"  Note:  No word yet from Rahm Emanuel, formerly of Freddie Mac, on this one.

Crisis Awaits World’s Banks as Trillions Come Due [07/13/10] "The sovereign debt crisis would seem to create worry enough for European banks, but there is another gathering threat that has not garnered as much notice: the trillions of dollars in short-term borrowing that institutions around the world must repay or roll over in the next two years. The European Central Bank, the Bank of England and the International Monetary Fund have all recently warned of a looming crunch, especially in Europe, where banks have enough trouble raising money as it is. Their concern is that banks hungry for refinancing will compete with governments — which also must roll over huge sums — for the bond market’s favor. As a result, credit for business and consumers could become more costly and scarce, with unpleasant consequences for economic growth.  [...]"   

Lose the Derivatives, or Lose Civilization [07/13/10] "With London and the Bank of England at the center of the planning, new "financial reform regulations" have been put forward on a global basis by the Bank for International Settlements and the IMF, and simultaneously in various nations — including the wretched bag of loopholes called the Dodd-Frank bill in the United States. [...]"  

Controlling the wealth of America – top 1 percent control 83 percent of U.S. stocks [07/13/10] "Today Wall Street is in full command of our government. The impact of massive lobbying has guaranteed that many of our politicians are bought off and are serving as serfs to their feudal lords on Wall Street. How else can we explain the lack of reform in the financial industry after the biggest economic crisis since the Great Depression? Wealth is massively concentrated in a few hands in America. Just because you have access to debt does not make you wealthy. 83 percent of all U.S. stocks are in the hands of the top 1 percent. [...]"   

Secret Gold Swap Spooks the Market [07/13/10] "It takes a lot to spook the solid old gold market. But when it emerged last week that one or more banks had lent 380 tonnes of gold to the Bank of International Settlements (BIS) in return for foreign currencies, there was widespread surprise and confusion. The news that a mystery bank has just pawned the family jewels gave traders a jolt – nervous about the sudden transfer of almost 20pc of the world’s annual gold production and the possibility of a sell-off. In a tiny footnote in its annual report, the bank disclosed its unusually large holding of gold, compared with nothing the year before. The disclosure was a large factor in the correction of the gold price this week, which fell below $1,200 for the first time in more than a month. Concerns hinged on whether the BIS could potentially sell on this vast cache of bullion in the event of a default, flooding the market with liquidity. It appears to have raised $14bn for whoever’s been doing the swapping – small fry on the currency markets, but serious liquidity in the gold market. [...]"  Note: The BIS has been up to NO GOOD so often in the past ... another unethical bunch .. 

Individual investors running for cover again [07/12/10] "Small Investors Flee Stocks, Changing Market Dynamics. Small investors' faith in stocks, which surged in the 1990s, has collapsed since the technology-stock debacle and the Enron and WorldCom scandals of 2000-2002. The 2007-2009 financial crisis only made things worse. Now, the pullback among ordinary investors means they are a declining force in a market that is increasingly dominated by professionals.  [...]"  

 Commentary:  Is the IMF about Ready to Muscle U.S. Taxpayers? [07/11/10] "The IMF has long been a bought, and paid for, muscle arm of the U.S. government and the banking elite.  The play goes like this. Banks loan money to third world countries that have no chance in hell of paying the money back. The IMF comes in with "austerity" programs that include heavy new tax burdens on the working class. The revenue from the new taxes will, of course, go to payoff the banking elite. It's a sick game, but the elite seem to get their jollies by pulling this scam in country after country. It appears the elite appear to want to up the ante. It appears they are getting set to turn the guns inward and go after the hard earned money of Americans. [...]"  

Commentary: Waltzing at the Doomsday Ball - Capitalism is Dead, But We Still Dance With the Corpse [07/10/10] "As an Anglo European white guy from a very long line of white guys, I want to thank all the brown, black, yellow and red people for a marvelous three-century joy ride. During the past 300 years of the industrial age, as Europeans, and later as Americans, we have managed to consume infinitely more than we ever produced, thanks to colonialism, crooked deals with despotic potentates and good old gunboats and grapeshot. Yes, we have lived, and still live, extravagant lifestyles far above the rest of you. And so, my sincere thanks to all of you folks around the world working in sweatshops, or living on two bucks a day, even though you sit on vast oil deposits. And to those outside my window here in Mexico this morning, the two guys pruning the retired gringo's hedges with what look like pocket knives, I say, keep up the good work. It's the world's cheap labor guys like you -- the black, brown and yellow folks who take it up the shorts -- who make capitalism look like it actually works. So keep on humping. Remember: We've got predator drones. After twelve generations of lavish living at the expense of the rest of the world, it is understandable that citizens of the so-called developed countries have come to consider it quite normal. In fact, Americans expect it to become plusher in the future, increasingly chocked with techno gadgetry, whiz bang processed foodstuffs, automobiles,  entertainments, inordinately large living spaces -- forever. We've had plenty of encouragement, especially in recent times. Before our hyper monetized economy metastasized, things such as housing values went through the sky, and the cost of basics, food etc. went through the basement floor, compared to the rest of the world. The game got so cheap and fast that relative fundamental value went right out the window and hasn't been seen since. [...]"   Related:  Commentary: "Capitalism Is An Anti-Social Disease" [07/10/10] "... Let’s face it. Capitalism is a disease–an raging infection that causes its hosts to become sociopaths.  [...]  A second feature of mankind’s history until only the last few hundred years or so, has been that nature has been respected, and even revered. Capitalism has completely done away with this traditional reality of human existence. In capitalism, the welfare of a large proportion of society is simply ignored or openly put at risk. The capitalist views the low-wage worker and the unemployed person as just another resource to be subjugated and exploited, along with the rest of nature. Educated workers are sometimes treated slightly better, but only slightly, simply because they are deemed a bigger investment, worth hanging onto longer, until the investment has been amortized and they too can be trashed. In the final analysis, though, there is no concern for the society, for the well-being of the group. The only thing that matters, the only virtue, is profit maximization and increased share value, which means bigger bonuses for management and bigger returns for the investor. For a while, mankind, and the earth, could tolerate this sociopathic ideology, but we’ve clearly reached the point where it has to be recognized as a fatal disease. Capitalism and the greed it engenders and elevates to a virtue now threatens to finish us all off. [...] "  Lecture:  Crises of Capitalism [31:14] Animated Version [11:11]  "Radical sociologist David Harvey asks if it is time to look beyond capitalism." Note: I am reposting this on the finance page, because the animated version shows the whole layout of the current system, showing the deceptions ... very informative for 11 minutes.

Investing: When Cash Takes a Vacation [07/10/10] "Hedge funds, investors, and corporations are all sitting on piles of money. ... By definition, businesses must earn a return above their cost of capital, while fund managers must keep watch over their own performance. "Shareholders demand a return no matter what the economic environment," says Sean Kraus, who manages $2 billion in client assets as chief investment officer of CitizensTrust in Pasadena, Calif. "If you don't put cash to work, they will simply sell." And if you lose their money, as so many funds did in 2008, they will sell faster—hence the newfound preference for cash.  [...]"  

Commentary: The Con Of the Decade Part I [07/10/10] "In effect, it's a Third World/colonial scam on a gigantic scale: plunder the public treasury, then buy the debt which was borrowed and transferred to your pockets. You are buying the country with money you borrowed from its taxpayers. No despot could do better. [...]"   Related:  Then Con of the Decade Part II  Yesterday I described how the financial Plutocracy can transfer ownership of the Federal government's income stream via using the taxpayer's money to buy the debt that the taxpayers borrowed to bail out the Plutocracy. [...]"   

The US Treasury and the Federal Reserve are Manipulating the Gold Market [07/09/10] "As it has turned out the Treasury and the N.Y. Fed manipulates markets 24/7 worldwide, and they have a particular interest in the suppression of gold and silver prices; they being the antitheist of the US dollar. It should be noted that there were several times that the US Treasury and the privately owned Fed manipulated gold and silver prior to August 1988. We have found in 50 plus years of tracing this manipulative activity by the US government that it happens over and over again. [...]" 

Commercial real estate transactions collapsed 90 percent from 2007 to 2009 [07/08/10] "The massive commercial real estate market is already plaguing the weak balance sheets of banks. It is the case that each Friday, we are likely to see one U.S. bank fail because due to high levels of commercial real estate (CRE) debt on their books. This market is likely to cause the failure of hundreds of banks and put the economy down into another real estate funk. The amount of commercial real estate transactions shows no sign of recovery in this market. And why would there be any recovery? This is an area for hotels, strip malls, condos, and other projects that usually reflect a healthy and growing economy. We do not have that and the problems embedded in CRE are going to stifle any growth for years to come. [...]"   

Six Months to Go Until The Largest Tax Hikes in History [07/08/10] "In 2001 and 2003, the GOP Congress enacted several tax cuts for investors, small business owners, and families. These will all expire on January 1, 2011:  Personal income tax rates will rise. The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which two-thirds of small business profits are taxed). The lowest rate will rise from 10 to 15 percent. All the rates in between will also rise. Itemized deductions and personal exemptions will again phase out, which has the same mathematical effect as higher marginal tax rates. The full list of marginal rate hikes is below: [...]"  

FDIC Business Checking Guarantees Extended [07/07/10] "The Federal Deposit Insurance Corporation has finalized rules extending the Transaction Account Guarantee program, under the Temporary Liquidity Guarantee Program which gives unlimited backing to transactions involving non-interest bearing accounts. [...]"   

Investors Fear Rising Risk of US Municipal Defaults [07/07/10] " “The risk in the second half of the year is that investor attention switches from Europe to the US,” said Robert Parker, senior adviser at Credit Suisse Securities, who singled out parts of California, as well as towns and cities in Illinois, Michigan and New York state as among the most vulnerable. “You will see investor concern about the viability of those cities and therefore you will see, inevitably, further spread widening in the municipal bond market.”  If these market swings are sustained, they could push up borrowing costs for local governments , which, in turn, could exacerbate the squeeze on local authority finances and place more stress on the federal budget. You might ask why this is so? The Heartland Institute explains the situation in Illinois:  In fiscal year 2008, 11,254 Illinois public school employees had annual salaries exceeding $100,000, up from 9,591 in 2007. When pensions, retirement health insurance, and employee insurance are added, public school employees’ total compensation is about 30 percent more than their salary. That means more than 40,000 Illinois public school employees, or about 25 percent, have total compensation of more than $100,000 per year.  And that $100,000 does not include the value of tenure or a nine-month work year.  As you can imagine. Barack Obama wasn't part of a "change" movement when he was in the Illinois state legislature. [...]"   Related:  Rohatyn Proffers Monopoly Money to U.S. Cities, To Snatch Their Infrastructure [07/07/10] "Felix Rohatyn, the Lazard banker, is still at it: he is telling financially- strapped U.S. cities, to drop their traditional unwillingness to sell off public assets (water and sewer systems, parks, properties, ports, airports, etc.) to "private foreign investors"—Rohatyn's euphemism for international funny money—and allow himself and cronies to grab it up. Rohatyn's pitch is featured in London's Financial Times today, in its coverage of how U.S. cities and states are in such financial distress, that maybe they can be trapped into going along with this corporatist crap. Rohatyn says, U.S. cities should get over their "wall of fear" of foreign takeover. "This dislike for foreign ownership is Kafka-esque..."  However, the attitude of most local authorities—though in trouble, and even in unofficial default—is to resist being stampeded into selling off assets, or even into bankruptcy. The mass-strike sense of revulsion against the Rohatyn-type vultures is in play. The critical factor is the LPAC-led intervention for FDR/Glass-Steagall emergency measures.  [...]"

China rules out option of dumping US debt [07/07/10] "The body which manages China's official currency reserves has called on the US to take 'responsible measures' to maintain the dollar's value but ruled out dumping its vast holdings of US Treasury securities ... [...]"  

Goldman Sachs Executive to Advise Head of Canada’s Central Bank, a Former Goldman Sachs Executive [07/06/10] "The chief executive of Goldman Sachs Canada has been named a special adviser to the head of Canada’s central bank. The Bank of Canada said Tuesday that Timothy Hodgson will advise central bank head Mark Carney, a former Goldman Sachs executive, on "financial reform".  [...]"  

Analysis:  Milton Friedman Unraveled by Murray N. Rothbard [07/06/10] "Mention "free-market economics" to a member of the lay public and chances are that if he has heard the term at all, he identifies it completely with the name Milton Friedman. For several years, Professor Friedman has won continuing honors from the press and the profession alike, and a school of Friedmanites and "monetarists" has arisen in seeming challenge to the Keynesian orthodoxy. [...] Friedmanism can be fully understood only in the context of its historical roots, and these roots are the so-called "Chicago School" of economics of the 1920s and 1930s. Friedman, a professor at the University of Chicago, is now the undisputed head of the modern, or second-generation, Chicago School, which has adherents throughout the profession, with major centers at Chicago, UCLA, and the University of Virginia. The members of the original, or first-generation, Chicago School were considered "leftish" in their day, as indeed they were by any sort of genuine free-market criterion. And while Friedman has modified some of their approaches, he remains a Chicago man of the thirties. The political program of the original Chicagoans is best revealed in the egregious work of a founder and major political mentor: Henry C. Simons’s A Positive Program for Laissez Faire.1 Simons’s political program was laissez faireist only in an unconsciously satiric sense.  It consisted of three key ideas:  1. a drastic policy of trust-busting of all business firms and unions down to small blacksmith-shop size, in order to arrive at "perfect" competition and what Simons conceived to be the "free market";  2. a vast scheme of compulsory egalitarianism, equalizing incomes through the income-tax structure; and 3. a proto-Keynesian policy of stabilizing the price-level through expansionary fiscal and monetary programs during a recession. Extreme trust-busting, egalitarianism, and Keynesianism: the Chicago School contained within itself much of the New Deal program, and, hence, its status within the economics profession of the early 1930s as a leftish fringe. And while Friedman has modified and softened Simons’s hard-nosed stance, he is still, in essence, Simons redivivus; he only appears to be a free-marketeer because the remainder of the profession has shifted radically leftward and stateward in the meanwhile."  Note:  Although a little dry, it's a penetrating look at the system which surrounds us. For this, Rothbard is the best, and he did this analysis in 1971. Chicagoans still maintain support of the Fed and want it to house a systemic risk regulator. They still want to patch up the existing system. Chicago, Harvard, and MIT are one family. Flashback: Greenspan Concedes Error on Regulation  "..Mr. Greenspan admitted that he had put too much faith in the self-correcting power of free markets and had failed to anticipate the self-destructive power of wanton mortgage lending. [...]"  

Ayn Rand: The Fountainhead of Greenspan's Errors [07/06/10] "Through their views on the virtues of free markets and individualism, Ayn Rand and the former chairman of the Federal Reserve Alan Greenspan will be forever linked as architects of the worst financial collapse since the Great Depression. Rand's name is regularly invoked when calling into question the Federal Reserve's actions in the years leading up to the crisis. Rand's strong free-market views, as expressed in her most famous works, "Atlas Shrugged" and "The Fountainhead," were the basis for the ideology Greenspan followed as he let the markets run free from any sort of regulation. This freedom meant that the derivatives markets and their extremely complex structured financial products operated in a wild west style world where the law had yet to show up. As we now know, that lawless culture contributed significantly to last year's financial meltdown. A year ago, Greenspan offered a mea culpa and admitted that he was at least partially mistaken in his view of the superiority of free markets over government regulation. [...]"   

With the US trapped in depression, this really is starting to feel like 1932 [07/06/10] ""The economy is still in the gravitational pull of the Great Recession," said Robert Reich, former US labour secretary. "All the booster rockets for getting us beyond it are failing." Investors are starting to chew over the awful possibility that America's recovery will stall just as Asia hits the buffers. China's manufacturing index has been falling since January, with a downward lurch in June to 50.4, just above the break-even line of 50. Momentum seems to be flagging everywhere, whether in Australian building permits, Turkish exports, or Japanese industrial output. On Friday, Jacques Cailloux from RBS put out a "double-dip alert" for Europe. "The risk is rising fast. Absent an effective policy intervention to tackle the debt crisis on the periphery over coming months, the European economy will double dip in 2011," he said.  [...]"  

At the US Money Factory, High-Tech Benjamins Roll Off the Presses [07/05/10] "CNET has a nice behind-the-scenes tour of the process of making the newly redesigned $100 bill, which the government unveiled in April. It won’t be in circulation until February 10, 2011, but CNET’s story provides a nice sneak peek.  [...]"    

Glass-Steagall Still In the Middle of Congressional Debate [07/05/10] "Two U.S. Senators demanded Glass-Steagall be restored June 22, in the ongoing debate over the ineffective Dudd-Frank "financial regulation" bill. And the political mass strike among the American people, which demands anti-bailout, anti-Wall Street action, was again evidenced in yesterday's Congressional political primaries in South Carolina and Utah. [...]" 

SEC Says Adviser Swiped Millions [07/05/10] "The SEC today charged a New York-based investment adviser with defrauding investors of tens of millions of dollars by misrepresenting multibillion-dollar collateralized debt obligations tied to mortgage-backed securities. Thomas Priore and ICP Asset Management "repeatedly caused the Triaxx CDOs to overpay for securities in order to make money for ICP and protect other ICP clients from realizing losses," the SEC said in announcing the federal complaint. [...]"   

Goldman Sachs – The Real Pirates behind America’s Economic Implosion [07/04/10] [10:51]  Note: Alex Jones talks with Max Keiser about who the real criminals are behind the implosion of the American economy.   Part 2 [10:56]| Part 3 [4:01] Related: Goldman Sachs Refuses to Release Derivatives Data [07/04/10] "Goldman Sachs Group Inc. refused a request from the Financial Crisis Inquiry Commission to reveal how much it makes trading derivatives, saying the bank doesn’t separate the figure from other businesses. [...]"   

Global Economic Crisis Explained [07/04/10] "...Radical sociologist Professor David Harvey visits the RSA to explain how capitalism came to dominate the world and why it resulted in the current financial crisis. Taking a long view of the current crisis, Professor Harvey exposes the follies of the international financial system, looking closely at the nature of capitalism, how it works and why sometimes it doesn’t. Examining the cycles of boom and bust in the world’s housing and stock markets, and the vast flows of money that surge round the world daily, Harvey shows that periodic episodes of meltdown are not only inevitable in the capitalist system but, in fact, are essential to its survival. Harvey argues that the essence of capitalism is its amorality and lawlessness and to talk of a regulated, ethical capitalism is to make a fundamental error. [...]"  Related:  Educational Lectures: David Harvy - Crises of Capitalism [31:14]  Animated Version [11:11]  "Radical sociologist David Harvey asks if it is time to look beyond capitalism, towards a new social order that would allow us to live within a system that could be responsible, just and humane." Note:  Very clever and informative. More of these kind of videos are being posted in the Notable Videos panel, as we get them formatted.

 UK: Departments told to draw up plans for 40% spending cuts [07/04/10] "Most government departments are being asked to produce "illustrative plans" for spending cuts of up to 40%.  The Treasury wants departmental heads to set out how they would cut spending by both 25% and 40% by the end of July. But education and defence have been given some protection from the worst of the cuts, and will have to draw up plans for cuts of 10% and 20%. Health will continue to have small rises in its budget, and international aid is also protected. [...]"  Note: Could the U.S. cut it's defense budget by 20%. Nope. War, death and greed are more important than the people. The UK "gets it" to some degree, but the money they save may not be applied to the people, either. We shall see.

 Trends: Who Needs Risk Rules? Pensions Acting on Their Own [07/04/10] "Several public and corporate pension funds are curtailing or revisiting their use of derivatives out of concern for hidden risks they may carry. In Oklahoma, a public pension fund replaced Pacific Investment Management Co., led by well-known investor William Gross, as one of its bond-fund managers, citing the risks of its use of derivatives whose values couldn't be cross-checked in audits.  Public pension funds in California and Maryland also are reviewing the risks of their exposure to derivatives. And state legislators in Illinois and New Jersey have introduced bills to curtail the use of derivatives by their states' pension funds, citing their role in the market meltdown.  Derivative contracts run from options and futures on individual stocks to complex swaps covering interest rates, currencies or other assets. The financial-overhaul bill pending in Congress includes new regulation of derivatives, including processing some trades through a clearinghouse, with parties posting margin to assure they can pay. The bill requires Wall Street dealers to segregate some riskier derivatives in separately capitalized subsidiaries, to make sure they can repay as well. Karyn Williams, a pension consultant at Wilshire Associates, says some corporate pension-fund managers are trying to monitor issues like "counterparty risk" being taken by their managers in derivatives known as swaps. "There's a big conversation about risks in these pension plans," she said. [...]"     

Sri Lankan budget imposes IMF austerity demands [07/03/10] "Sri Lankan deputy finance minister Sarath Amunugama presented a delayed interim budget for 2010 on Tuesday, outlining plans for austerity measures to meet the demands of the International Monetary Fund (IMF). [...]"  Note:  The IMF is influenced by the U.S, and it's deliberately setting out to cause social disorder in every country it can. 

 Report: Government for Sale: How Lobbyists Shaped the Financial Reform Bill [07/02/10] "Two weeks ago, along a marble corridor in the Rayburn House Office Building in Washington, I watched about 40 well-dressed men (and two women) delivering huge value for their employers. Except that we, the taxpayers, weren't employing them. The nation's banks, mortgage lenders, stockbrokers, private-equity funds and derivatives traders were.  [...]"  Note: Congress is supposed to write the bills, not lobbyists or corporations. That's what they're paid to do - write the bills, read them and vote on them. They do very little towards that end.  

Glass-Steagall vs. The Crash [07/02/10] "Everybody knows how British-run AIG, with its derivatives hot-shots at its Financial Products Division (AIGFP) in London, was central to accelerating the collapse of 2007-08 into the bank crash of September 2008; and how it then got the biggest and most corrupt bailout of the crash, at least $182 billion of taxpayer money to the benefit of Wall Street and foreign banks. Few understand that AIG's holding company's violating of the Glass-Steagall Act, beginning months before Glass-Steagall was repealed in 1999, was crucial in its triggering the crash. [...]"  

Dollar Plunges After UN Call To Ditch Greenback [07/02/10] "The dollar plunged today following a United Nations report which called for the greenback to be replaced as the global reserve currency by the International Monetary Fund’s special drawing rights (SDRs). [...]"  Note:  SDR's won't happen anytime soon, that I can see, based on reports I've read. Here is one : ".....  The next step for the elitists is to designate SDR’s, Special Drawing Rights, as the new world currency. Needless to say, it won’t have gold backing. The problem is they cannot implement it until they get worldwide carbon taxes to back up this new worthless currency. That is why BP, which is controlled by the Illuminists, had its false flag event in the Gulf of Mexico. This is the ruse to be used to pass such legislation in the US. The powers that be are desperate to find an alternative to the US dollar as a reserve currency because the US is broke. We might also direct you to the USDX, the dollar index, which is in the clutches of a long-term perfect head and shoulders, which is the most negative, powerful, technical formation achievable. Needless to say, this point has not been overlooked by the elitists. On the other hand as a result intelligent investors worldwide have been accumulating gold as an alternative, replacing the dollar as the world reserve currency. This is just as we said it would be in June of 2000. If you are not on board get onboard now before you are left at the station. More and more people are entering into gold and silver assets as they discover that frauds being perpetuated against them by their governments. They are not going to trust the SDR even if 20 currencies are indexed and funds from carbon taxing back the currency. Investors already recognize the SDR as just another fiat currency. All they will be doing is replacing one worthless currency with another, without gold backing and it isn’t going to fly. At the same time gold and silver will just move relentlessly higher. In addition what does the IMF do after all their gold is gone? They will be flat broke again. If you noticed, every time they sell gold the price goes higher. As a matter of fact some nations are buying gold and dumping dollars, so they are aware of what is going on. Some smaller nations are afraid to act. They know printing money is not the solution.  Europe is still struggling in an attempt to bailout the PIIGS, which if they take the loans they will live in financial bondage and depression for the next 30 years. We told the Greek people in a TV documentary last week to default, leave the euro, create the new drachma, lower taxes, make sure the rich pay their taxes, cut expenses in government by 30% and do not under any circumstances sell off any Greet assets, such as islands and utilities to foreign Illuminists for 20 cents on the dollar. The bankers created the money they lent out of thin air, so why should they be repaid. In addition they knew the risks and should have never made the loans in the fist place. The Illuminist-Bilderberg PM should be impeached for trying to destroy the country.[...]"

Goldman Sachs Refuses to Release Derivatives Data [07/02/10] "Goldman Sachs Group Inc. refused a request from the Financial Crisis Inquiry Commission to reveal how much it makes trading derivatives, saying the bank doesn’t separate the figure from other businesses. “Some other firms have provided us with that data when we’ve asked for it and Goldman Sachs hasn’t,” Commissioner Brooksley Born said today in Washington on the second day of a hearing investigating the role of derivatives in the 2008 credit crisis, which sparked the worst recession since the 1930s. “It makes one wonder why Goldman has the incentive or impetus to not release this information.” [...]"   

Commentary:  Audit-the-Fed Goes Down, 229-198 [07/02/10] "This is no surprise. Neither party wants to audit the counterfeiting enterprise that is at the dark heart of the regime. The Republicans voted for it only for partisan reasons. When they are in power, the bill will never even come up. But here is the victory: through this device Ron Paul has added many more people to the vast numbers he has educated on the true nature of the central bank. The only victory that matters is in the hearts and minds of the people; good will never come from the top down. Ron Paul has advanced the cause of truth by a huge margin, where it counts, educationally. We are being ripped off through inflation, business cycles, and redistribution, and through the corporatism and wars the Fed makes possible. That is Ron Paul’s lesson, and the reason we must End the Fed. See also his reading list. [...]"   

Europe approves US mass data grab [07/02/10] "Europe has signed a deal to hand over all bank transaction data to the US in order to help "the ongoing war on terrorism." [...]"  

Financial Reform Bill Delayed in Senate [07/01/10] "The U.S. House of Representatives passed a sweeping financial regulatory reform bill Wednesday by a 237 to 192 vote, but the bill will not be passed in the Senate until lawmakers return from the Independence Day recess, in mid-July.  [...]"  

World Economy: The G20 Is Betting That China Can Carry The Global Economy [07/01/10] "... There is no question that some weaker European countries, like Greece, Portugal and Ireland, had out-of-control budget deficits. Particularly if they are to pay back all their foreign borrowing — a controversial idea that remains the conventional wisdom — these countries need some austerity. But what about those larger countries, like Germany, France, Britain and the United States, which remain creditworthy? If these economies all decide to reduce their budget deficits, what will drive global growth? The answer in Toronto was obvious: China.  [...]"  Note:  As we see, they're pinning all their 'hopes' on something they can't control: Related: Fears of a Chinese economic slowdown  "There are mounting global concerns over China’s frenzied property speculation and the sustainability of its government’s stimulus measures, compounded by strikes in the auto industry. [...]"  

Global markets on 'cliff edge' amid fears over European banks [07/01/10] "Fears that government austerity packages will hinder global growth have combined with fresh anxiety about the health of European banks to hammer investor confidence.  Shares on both sides of the Atlantic dropped heavily amid warnings that markets were on a "cliff edge". In jittery trading ahead of a crucial repayment by Europe's banks of a €442bn (£362bn) European Central Bank loan on Thursday the rates at which banks lend to each other in euros rose to their highest levels in eight months as rumours swirled that some banks were finding it difficult to raise funds in the money markets. [...]"   

Discussion: To end the occupation, cripple Israeli banks [07/01/10] "The international banking sanctions campaign in New York against apartheid South Africa during the 1980s is regarded as the most effective strategy in bringing about a nonviolent end to the country’s apartheid system. The campaign culminated in President FW de Klerk’s announcement in February 1990, releasing Nelson Mandela and other political prisoners, and the beginning of constitutional negotiations towards a non-racial and democratic society. [...]"   

Goldman can’t say how much it made from housing crash [07/01/10] "A congressional commission pressed Goldman Sachs executives Wednesday to spell out how much their company has earned from its exotic bets against the housing market, including $20 billion in wagers that helped force a $162 billion taxpayer bailout of the American International Group.  However, Goldman's president and chief risk officer told members of the Financial Crisis Inquiry Commission that their company never breaks out its figures that way. "We can dig and dig and dig," Goldman President Gary Cohn said in sworn testimony. "We won't find that report."  [...]"  Note:   Video clip included.

National Debt Soars to Highest Level Since WWII [07/01/10] "The federal debt will represent 62% of the nation’s economy by the end of this year, the highest percentage since just after World War II, according to a long-term budget outlook released today by the non-partisan Congressional Budget Office. [...]"  U.S. debt "The U.S. national debt will be nearly two-thirds of the country's gross domestic product by the end of the current fiscal year. [...]" 

Russia Purchases Twenty-two Tons Of Gold In May [07/01/10] "Ten days ago we reported the most recent data on gold reserve holdings as presented by the World Gold Council, where we pointed out that Russia had purchased 27.6 tons of gold in the most recent reporting period, bringing its total to 668.6 tons. It appears Russia is only getting started. [...]"   

Bernanke, Geithner Put Taxpayers On The Hook For Junk Bonds: Told Congress They Were 'Investment Grade' [07/01/10] "Federal Reserve Chairman Ben S. Bernanke and then-New York Fed President Timothy Geithner told senators on April 3, 2008, that the tens of billions of dollars in “assets” the government agreed to purchase in the rescue of Bear Stearns Cos. were “investment-grade.” They didn’t share everything the Fed knew about the money.  The so-called assets included collateralized debt obligations and mortgage-backed bonds with names like HG-Coll Ltd. 2007-1A that were so distressed, more than $40 million already had been reduced to less than investment-grade by the time the central bankers testified. The government also became the owner of $16 billion of credit-default swaps, and taxpayers wound up guaranteeing high-yield, high-risk junk bonds.  By using its balance sheet to protect an investment bank against failure, the Fed took on the most credit risk in its 96- year history and increased the chance that Americans would be on the hook for billions of dollars as the central bank began insuring Wall Street firms against collapse. The Fed’s secrecy spurred legislation that will require government audits of the Fed bailouts and force the central bank to reveal recipients of emergency credit.  “Either the Fed did not understand the distressed state of some of the assets that it was purchasing from banks and is only now discovering their true value, or it understood that it was buying weak assets and attempted to obscure that fact,” Senator Sherrod Brown, an Ohio Democrat and member of the Senate Banking Committee, said in an e-mail when informed about the credit quality of holdings in the Maiden Lane LLC portfolio. The committee held the April 3 hearing.  [...]"   

MSNBC’s Ratigan: Stock market an ‘obviously corrupt’ fraud [07/01/10] "On his afternoon show Tuesday, MSNBC host Dylan Ratigan explained why he believes the usual explanations given in the media for why the stock market went up or down on a given day are nonsense.  "Seventy percent of the volume [of trades on the stock market] is computers that are run by the banks playing ping pong with stocks for 10 seconds at at time," Ratigan said. "The stock market at this point, which used to be a reflection of the future value of actual businesses in this country, has been turned by our government and our banks into little more than a paper shredding facility [about which] we can make up reasons why it goes up and down," Ratigan said. "But when the computers ... at the banks are controlling the action, most everything else is kind of silly." Ratigan concluded that it's time to create an "alternative investment structure" that would allow people to invest their money without putting it "into the obviously corrupt stock market in this country." Ratigan was referring to the recently new phenomenon known as high-frequency trading: High-speed computer programs that are able to "peek" at stock trades less than a second before the trades are made. If the computer sees that a trade about to be made will raise the price of a particular stock, it can purchase the stock in the split-second before that trade is made. [...]"   

Investigations: Treasury’s ‘Point Man’ on AIG Bailout That Benefited Goldman, Owned Goldman Stock [07/01/10] "Deep in an article today on the government's bailout of AIG, The New York Times cites sources saying that the Treasury Department's "point man" on AIG, Don Jester, was a former Goldman Sachs employee who owned stock in the bank even as he was making decisions on the bailout that ultimately channeled billions of taxpayer dollars to Goldman.  Owning stock in a company an official oversees typically is verboten, but because Jester was working as an outside contractor rather than an official employee, he was exempt from conflict-of interest rules. Goldman Sachs stood to benefit from the AIG bailout because Goldman had roughly $20 billion in insurance-like credit-default swaps with AIG -- essentially bets by the investment bank that the housing market would go south. But if AIG collapsed, Goldman wouldn't be able to collect on the bets. When the government instead bailed out AIG, taxpayers paid out the swaps at full face value, and Goldman Sachs got $12.9 billion -- more than any other of AIG's customers. Jester was Goldman's deputy CFO when he left the firm in 2005. And here's what the Times says about his investments in Goldman: Mr. Jester, according to several people with knowledge of his financial holdings, still owned Goldman stock while overseeing Treasury's response to the A.I.G. crisis. We contacted Jester this morning to comment on the story and confirm the stock ownership; we'll post an update when we get a response. His spokesperson, Michelle Davis, told the Times that Jester followed what the paper paraphrases as an "ethics plan to avoid conflict with all of his stock holdings." (According to a federal database search, Jester received $30,000 for six months consulting at the Treasury Department.) [...]" 

EU Moves to Cap Bank Bonuses [07/01/10] "Under a deal agreed with the European Parliament, bankers will receive no more than 30% of their bonus immediately and in cash, or 20% for larger bonuses.  The remaining bonus payments will be delayed and linked to long-term performance, with 50% paid in shares. Hedge funds will also be covered by the new rules, the BBC has learned. [...]"  Note: Looks like banking executives in EU member nations will have to settle for slightly less ginormous bonuses in the coming year, once the European Parliament puts its official stamp on an agreement to limit banking bonuses and severance packages. 

House passes US financial reform [07/01/10] "The US House of Representatives approves a lankmark bill designed to overhaul regulation of the US financial system. [...]"   

Regulators Made Sure Goldman Sachs Got All of its Bailout Money [07/01/10] "A devastating report in the New York Times documents how Timothy Geithner’s New York Fed worked tirelessly to make sure that AIG was forced to pay banks such as Goldman Sachs 100 percent on dubious contracts that might otherwise have been slashed or subjected to lawsuits. Geithner, of course, was promoted for his efforts to run the rest of the nation’s economy.  The article is full of revelations that would be mind-numbing if we weren’t so used to reading about how taxpayers have been fleeced in the meltdown.  At one point, a regulator sends Goldman’s CEO an e-mail thanking the bank for its patience. The Treasury Department’s point man for the AIG bailout, a former Goldman executive, still held Goldman stock when working out the deal, reports the Times.  AIG itself was forced to sign a waiver giving up the right to sue banks over suspect contracts.  You don’t have to be a conspiracy theorist to follow the money: In the $182 billion bailout of AIG, Goldman Sachs and other banks that helped cause the financial crisis made out like, well, bandits.  [...]"  

German Government Moves Towards Glass-Steagall Principle [07/01/10] "The coalition government in Germany has drafted a bank-restructuring bill premised on the core principle of Franklin Roosevelt's Glass-Steagall law: that the government has the responsibility to salvage necessary commercial banking functions, but does not accept responsibility for bailing out investment banking and speculation. [...]"   

  

 

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