The Wall Street Swap Swamp

ΩΩThe EU saves the euro from being shattered the same way the US saved our banking system when fundamentals collapsed: via swap tricks and dumping trillions of deals into the public’s lap.  The G7 consortium which previously protected these nations from paying for their own economic mistakes still works…but only via dumping all these messes into the public’s lap.  Also, Zerohedge has an interesting powerpoint presentation about ‘subpenny’ trading on Wall Street which evidently is illegal.  This raises many questions which Goldman Sachs and JP Morgan should answer.  

ΩΩFirst the latest bail out of a major system: Merkel’s party in Germany just got slapped down by the voters who are very angry about the impending bail out of the PIIGS.  One article I read yesterday had a Greek woman who was boasting about how she looked very chic because she could buy very expensive Paris fashions…France lent Greece the bulk of its debts…and she did this by going very deep into debt while paying virtually no taxes on her income.

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ΩΩThis is the classic ‘grasshopper’ economy: no thought of the future, no regard about the day of reckoning, no worries about winter, eternal warm weather beacons!  Kondratiev wave dynamics is based on the concept of summer/winter which is the yin/yang of human hopes and fears and it basically says that grasshoppers prosper in the summer parts of an economic boom but their sunny disposition causes everyone to cease saving or being careful and everyone assumes it will always be pleasant like living on various Caribbean tax havens and then their life choices end up hastening the inevitable backlash and when the winter comes, the savers have to rise to the fore and enforce a harsh regime on everyone.

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ΩΩBut this always comes after the grasshoppers strip the savers of all wealth!  The mentality that says, ‘Let’s spend like thieves, who cares about the future?  There will always be plenty of goodies for us to feast on,’ is replaced by, ‘We must conserve and save and think about the grandchildren!’

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E.U. Details $957 Billion Rescue Package – NYTimes.com

In an extraordinary session that lasted into the early morning hours, finance ministers from the European Union agreed on a deal that would provide $560 billion in new loans and $76 billion under an existing lending program. Elena Salgado, the Spanish finance minister, who announced the deal, also said the International Monetary Fund was prepared to give up to $321 billion separately.

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Um, China just became the #3 power in the World Bank but not the IMF.  The G7 still totally control the IMF.  Note that the PIIGS don’t have much power within the IMF but France, Germany, the US and UK as well as Japan totally control it.  This is why the IMF frets about the US or UK but assures both, they will not be treated like Greece and have IMF restrictions placed on their own wild government spending.

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Officials are hoping the size of the program — a total of $957 billion — will signal a “shock and awe” commitment that will be viewed in the same vein as the $700 billion package the United States government provided to help its own ailing financial institutions in 2008. The package represented an audacious step for a bloc that had been criticized for acting tentatively, and without unity, in the face of a mounting crisis.

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Sadly, we are no longer either shocked nor awed at this stupidity.  We assume that this would happen because it is so very easy: simply make these massive trillion dollar loans out of thin air!  Of course, we are in a depression so the inflation won’t show up, will it?  Um…it is showing up.  I go to the store and am shocked at the high prices.  This is because I remember five years ago!

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Hell, I remember paying less than 20¢ for gasoline or a can of soup back when I was living on my own at age 16!  These bail outs began with Nixon cutting the gold standard and starting the floating fiat currency.  I spent my entire life trying to cope with one stupid choice after another, choices made by others, not myself.

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I like having no debts and holding savings!  This has become one of the hardest things to do and I did do this but I can’t parade around in designer clothes, get face lifts, drive fancy cars and look rich even though I am really poor!  Instead, I muck around in life, looking like a normal human, unable to live it up, go on any vacations (what are these???) or have a lot of fun in the sun.  Instead, I work hard in the summer to cut firewood for winter.

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Underscoring the urgency of the situation, President Obama spoke to the German chancellor, Angela Merkel, and the French president, Nicolas Sarkozy, on Sunday about the need for decisive action to restore investor confidence. And in a sign of the spreading anxiety, the United States Federal Reserve, along with the European Central Bank and the central banks of Canada, Britain and Switzerland, announced the establishment of instruments known as swap lines. The swaps are intended to ease pressure on European banks and money markets; in essence the Fed will be printing dollars and exchanging them for euros to provide more liquidity.

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ΩΩThe floating fiat dollar comes to the rescue!!!  Now, our own government is telling us that the Tea Party is forcing them to cut social spending, reduce the schools greatly and tighten all our belts because if the government prints money for all of these things that go to citizens of the US, why, we will have INFLATION.  Then, the government turns around and prints another half a trillion dollars, dollars which will some fine day come flying home to us and burn up our economy!

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ΩΩAll of this, to save the G7 allies…all of whom are very much responsible for our trade deficit which is destroying our own fundamental economic base!  I sit here on my mountain, watching my little town below die a slow economic death, virtually no work or businesses are left here now, a once thriving town with factories and stores just 25 years ago, destroyed by NAFTA and free trade.  And we now get to see our dying dollar which buys less and less…cheap particle board plywood is no longer $4 a sheet but $15 a sheet and cans of soup go for over a dollar, not 25¢.  Anyone who thinks this flood of trillions of dollars created out of nothing won’t impact inflation is nuts!  It certainly will and since we import much of what we used to manufacture here (say, plywood!) this will hammer us in international trade!

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ΩΩAnd we are taking on much more debt to bail out those who are causing our own internal economy to collapse due to undercutting our own prices and profits at home!  And on top of this, forcing us to wreck our own savings base to save them from their own wild grasshopper enthusiasms!

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British taxpayers ordered to bail out euro – Telegraph

The deal, effectively to shore up the euro, was denounced as a “stitch-up” last night after it emerged Nicolas Sarkozy, the French President and Angela Merkel, the German Chancellor, had devised it behind closed doors and were attempting to push it through at a time when there is no clear government in Britain.

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ΩΩThe British told the Iceland citizens to jump in a fiery lake when they protested that they were not responsible for British savers shoveling their savings into higher interest rate Icelandic banks.  The Brits wanted their savings back!  So even though there was no legal rule forcing the people of Iceland to fork over $20,000+ to Britain and the Netherlands to restore wealth lost in a bank crash, the British government insisted and got the IMF, where it has a great deal of power, to demand this!

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ΩΩWell, the IMF will be forced to do the same to Britain or France some fine day!  And the US, or it will simply collapse as the euro and dollar suddenly find themselves to be worthless in world trade while the much more limited in volume yuan will displace these things.  Every time the G7 creates another trillion in bail out funds to keep the sick banking/bond market/stock market system afloat, this shoves forwards the Chinese 50 Year plan.

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ΩΩThe secret hope of both the UK and US is that everyone who holds our money and bonds will be so scared of losing value, they will assent and assist in keeping our debts hidden offline so we can merrily print IOUs to save everyone while not worrying about hyperinflation.  The major problem with this belief and scheme is, the Chinese ultimately plan on bankrupting us if we don’t hand over significant power to them.

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ΩΩSo Europe will limp along for a while longer.  This makes Asia happier since Asian incursions into European markets is growing.  Just as Asia is happy with the US printing dollars so long as there are no protections interfering with displacing US business from its home base to Asia.  Now, on to the unfolding saga of the sudden collapse in stock values and how or why this happened.

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SEC Said to Consider New Rules as Market Drop Probed (Update1) – Bloomberg.com

SEC officials are weighing whether uniform trading curbs should be imposed across markets for companies that have fallen a certain percentage, said the people, who declined to be identified because the discussions are preliminary. The agency is examining whether any rules should include a time element because a steep decline that occurs in minutes may be more detrimental to markets than a decline over several hours, one of the people said.

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ΩΩAfter the 1987 crash, one would imagine stocks would be regulated so we don’t get glitch crashes.  But no, this never happens!  Instead, when obvious and sane proposals are put forward to prevent accidents, the speedsters all demand that things speed up, not slow down!  All panics have a real basic cause that is economic in nature but the difference between a kitchen fire that is covered with the lid to deprive it of oxygen versus pouring cooking oil all over a fire is obvious: you have to suppress fires, not enable them.

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ΩΩAll reforms are political and over the years, mostly thanks to the Reagan/Bush tax cuts on upper incomes (yes, they had to increase taxes but these were social security taxes, for example and social security taxes have funded the ongoing budget overspending of the last 30 years!) this income has enabled bribery of Congress to the point, the biggest Wall Street powers totally control our government.  If they want a change, they get it, even in the teeth of very violent popular rage.

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ΩΩOver time, this excess income ability has been greatly amplified to the point that much of our profit capital within our system flows to the Wall Street megabankers.  The entire system is now tilted towards them and is now designed to make all the wealth flow away from not only the workers who are poorer and deeper in debt every year but also investors who can’t compete with the megabankers.  The system is now totally unfair!

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ΩΩThis is also why over 70% of all Wall Street activity is by and for the megabankers.  Many of the small investors who once were a base of their own on Wall Street, investing patiently and playing the markets for fun and profit, have retreated to an increasingly small sector of business, that is, commodities such as gold.  Gold has a certain solidity to it and so watching the US dollar being abused such as with the bail out of Europe’s deep in debt nations, people move their savings towards gold for very understandable reasons.

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ΩΩSo profit money isn’t being used to grow the economy, it is basically going under the mattress.  This is actually a wise move when banks are being this irresponsible!  Even so, the gold market is hardly stable.  Gold shot up last week, hitting $1200 per ounce but fell $11 in just one day due to the EU trillion dollar bail out scheme.  So it doesn’t matter where you park your loot—it is still part of this system which is why we have to reform the system.

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Did Shutdowns Make Plunge Worse? – WSJ.com

A number of high-frequency firms stopped trading Thursday in the midst of the market plunge, possibly adding to the market’s selloff. Tradebot Systems Inc., a large high-frequency firm based in Kansas City, Mo., closed down its computer trading systems when the Dow Jones Industrial Average had dropped about 500 points, said Dave Cummings, founder and chairman of the firm.

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ΩΩThese high frequency trade firms work for the small investors.  They wisely shut down when the deals were obviously insane or illegal or dangerous. Kudos to them!  So the biggest trading houses of Citigroup, HBSC, GS and JPM were all forced to fleece each other!  HAHAHA.  No wonder it shot back up again!  The selloff hurt the big guys because they don’t want anyone to stop them from doing whatever the hell they were doing.

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ΩΩThis is more proof that the mess was probably started by the five biggest investment bankers.  And is more reason to bust them up and tax them heavily so they can’t do any more mischief.

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Banks Fight Ban in Derivatives Trading – NYTimes.com

Democrats surprised the industry by adding the “push-out” provision in mid-April, transforming the final rounds of an epic prize fight. The industry has been forced to set aside the issues that were its greatest concerns, including its opposition to a requirement that almost all derivatives trades be recorded on public exchanges…

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Obviously, the Over the Counter fraud is very lucrative to these crooks.  And it is the biggest bubble on earth, bar nothing else.  The trillions spent on bailing out these insane bankers is a drop in the bucket compared to the OTC monster.  But biggest of all is the Derivatives Beast!

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…The nation’s five largest banks, which dominate the derivatives business, have dispatched trade groups, paid lobbyists and their own executives to convince senators that excluding banks from the derivatives business would make markets less safe by shifting the trading to foreign banks and other institutions that are subject to less federal oversight.

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HAHAHAHA.  So, the pirates using the Queen of England’s tiny islands will do the derivatives game?  Well, if we slice and dice it so they must do this only with London, then the UK can commit social and economic suicide while we save our own skins!  Germans are getting very worried that their thrifty economy will be swamped and destroyed by the PIIGS and eventually, the UK’s debts.  We are in a very bad fix here at home.  We can’t fix it by enabling more piracy and looting by bankers who don’t care if they destroy our economic base!

. The provision that would prohibit banks from trading derivatives has alarmed the industry because it strikes at the combination of commercial banking and Wall Street trading that defines the modern industry.

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ΩΩThe modern industry is bad.  It does this stupid trading because the lobbyists pushed the GOP Congress and Clinton to dump sane laws preventing this obvious conflict of interest and since then, went on a total rampage which endangered our entire economic system.  Now, as we struggle to dig ourselves out from under a mountain of debt, as these banksters drive out smaller investors from all markets, drive up or down the value of everything on earth, flooding all our economic systems with fake money via the Japanese carry trade, as everything runs deeper and deeper in the red, they want to continue doing this!

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ΩΩIt makes them all very rich.  And they restlessly try to find more ways of penny anting us to death, sneaking small sums out of increasingly frequent churning of stocks and bonds so they can get richer.  That is, they know that if they can slip out a tiny fragment of wealth every microsecond, over the course of time and time is money….they can amass great fortunes doing nothing but zapping information back an forth between each other, that is, within the small number of gigantic international banking houses.

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Exchanges Seek Faster Circuit Breakers After May 6 Stock Plunge – Bloomberg.com

The biggest U.S. equity exchanges said they must align trading rules to prevent conflicting systems from repeating the failures of handling buy and sell orders that worsened last week’s rout.

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Circuit breakers designed to slow trading or shut markets during volatile period may have prevented the biggest losses on May 6, when the Dow Jones Industrial Average fell 998.5 points intraday, according to Bats Global Markets Inc., Direct Edge Holdings LLC and White Cap Trading LLC. The Securities and Exchange Commission is studying changes to calm markets when prices tumble, people familiar with the matter said May 7.

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ΩΩThe biggest firms will do everything in their power to prevent any real serious change because the present, unstable and unfair system benefits themselves too much.  The SEC runs of Victorian Time, that is, via horse and carriage and choo choo train while the international crooks operate on Space Age Time, that is, using rockets and the speed of light.  The SEC couldn’t change the rules to keep up with the computer changes that sped things up to warp speed because the same guys playing these hyper-fast games own Congress and Congress wants the SEC to be an old, dusty, creaky machine.

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NYSE Joins Nasdaq, Bats in Request to SEC on Subpenny Trading – BusinessWeek

May 03, 2010 (Note the date! Right before the sudden crash glitch!) The biggest U.S. stock exchange operators asked regulators for permission to trade 30 securities in price increments of less than 1 cent, an attempt to win back business from private venues including dark pools.

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NYSE Euronext, Nasdaq OMX Group Inc. and Bats Global Markets Inc. told the Securities and Exchange Commission in an April 30 letter that they should be allowed to start a six-month pilot program of quoting in half-cent tick sizes for stocks between $1 and $20. Jeromee Johnson, vice president for market development at Bats, confirmed the letter was sent.

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Exchanges lost market share in low-priced stocks such as Citigroup Inc., which accounted for as much as 33 percent of U.S. trading in a single day last year, after the credit crisis. That’s because 1-cent increments represent a larger proportion of the stock price and traders can transact in much smaller ticks on dark pools, which aren’t subject to all of the same rules as exchanges. Dark pools don’t publicly display quotes.

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ΩΩIt is obvious that dark pools should not exist.  Since these Stygian water bodies are all located in the exact same locations where the Derivatives Beast dwells, this means, we should regulate and expose all of these things at once, this is after all, the OTC ecosystem, too.  Let’s call this the Wall Street Swap Swamp.  Yikes.  During the earlier panic, Citigroup stocks fell to the basement and Citigroup shouldn’t exist anymore, it is a total fraud.  It is a bank without any capital. But it was saved in the trillion dollar + bail out of 2008.

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ΩΩAfter the other banksters couldn’t devour Citigroup on the cheap, they pulled the crooks in that bank back into their own brotherhood or rather, gangs in the ‘hood, and resumed battering officials who are often their own staff or politicians so they could keep on trucking, committing social crimes.  A social crime can be perfectly legal but if it destroys a country or an economy or a people, it is still criminal even if technically legal.

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ΩΩAfter pushing to get the right to do ‘penny incremental trades’ we see something strange going on: micro-incremental ‘sub-penny’ trading.  That is, one dealer who gave his power point display to Zero hedge: How “Sub-Pennying” In Dark Pools Ignores SEC Rule 612, Makes A Mockery Of The NBBO, And Is Another Illicit Source Of Billions For Wall Street is accusing the big Wall Street players of rigging the game using the new decimal system set into motion recently.  Instead of quarters or halves, the points are cut into much smaller units via the decimal system and this is being exploited again, by the massive banks of automatic computer trade systems.

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ΩΩFirst, here is the rule referred to in the Zero Hedge article:  http://www.sec.gov/rules/final/34-51808.pdf

The Securities and Exchange Commission (“Commission”) is adopting rules under Regulation NMS and two amendments to the joint industry plans for disseminating market information. In addition to redesignating the national market system rules previously adopted under Section 11A of the Securities Exchange Act of 1934 (note the year! 4 years after the stock market melt down!) (“Exchange Act”), Regulation NMS includes new substantive rules that are designed to modernize and strengthen the regulatory structure of the U.S. equity markets. First, the “Order Protection Rule” requires trading centers to establish, maintain, and enforce written policies and procedures reasonably designed to prevent the execution of trades at prices inferior to protected quotations displayed by other trading centers, subject to an applicable exception.

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Hyperspeed trading is inherently unfair because more distant places that rely on transmission of information are always significantly behind the swift moving dealers who are physically right there on Wall Street.  This is an unfair advantage and made worse by microsecond trading systems.

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To be protected, a quotation must be immediately and automatically accessible.

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The term ‘immediately and automatically’ is hash since technology has made this impossible.  That is, ‘immediate’ is too late.  ‘Instantly’ is probably better wording but back when these rules were made, no one thought about the possibility of microsecond trading.

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Second, the “Access Rule” requires fair and non- discriminatory access to quotations, establishes a limit on access fees to harmonize the pricing of quotations across different trading centers, and requires each national securities exchange and national securities association to adopt, maintain, and enforce written rules that prohibit their members from engaging in a pattern or practice of displaying quotations that lock or cross automated quotations.

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Third, the “Sub-Penny Rule” prohibits market participants from accepting, ranking, or displaying orders, quotations, or indications of interest in a pricing increment smaller than a penny, except for orders, quotations, or indications of interest that are priced at less than $1.00 per share. Finally, the Commission is adopting amendments to the “Market Data Rules” that update the requirements for consolidating, distributing, and displaying market information, as well as amendments to the joint industry plans for disseminating market information that modify the formulas for allocating plan revenues (“Allocation Amendment”) and broaden participation in plan governance (“Governance Amendment”).

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ΩΩTo go back to the top of my story today, just this month, the same clowns wrecking Wall Street want to wreck bond markets with penny trading.  Note the dollar limit to the SEC rules here!  Now, on to the presentation at Zero Hedge.  I can’t verify if the accusations here are true or false.  Zero Hedge tends towards hysteria and paranoia but in this case, we may have some very good information.  I didn’t reproduce the entire presentation but key parts:

ΩΩThis is basically using the tiniest of fractions to ‘jump to the head of the line.’  I scratch my head over all of this but figure, this is a form of ‘time travel’ in that the computers run by Goldman Sachs can detect a deal coming in but not yet registered and automatically puts in a bid at a tiny fraction different and thus, gets the deal first.  In a falling market, this is hyper-important!  The frustrated seller has to find another buyer!

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ΩΩDuring which, the price may drop.  When there is a bid to buy, it is for less or it might even be the same Goldman Sachs computer that jumped the gun a microsecond earlier!  This may be a form of hypersecond shorting.  Do this many millions of times a day and the flood of pennies swells into a river of loot.

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ΩΩThat is, this is a rigged game.  Felix Salmon’s Message To Investors: Get Out Of The Stock Market Right Now (VIDEO): Zero Hedge is hysterical, as usual.  The EU rescue operation is causing stocks to shoot upwards, not downwards.  As I expected.  I have to sleep so I didn’t do a story about the EU rescue at dawn but then, I analyze, I can’t keep up with the flood of news.  I tell what will happen over the long run, but the short run interests me.  But if any investors listened to Felix, they are probably pretty angry today.  Or rather, since this bad advice came over the weekend, they listened to other news media to see what was going on rather than heed this advice.  Giving specific advise is VERY DANGEROUS and this should be held against Felix Salmon.

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ΩΩPlease note that smart commentators on the web when commenting on future market moves say over and over, they are doing this for ENTERTAINMENT purposes.  This is to avoid lawsuits.

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ΩΩAnyone betting that this rescue will cause markets to fall is a fool. Of course, it didn’t.  This rescue operation will flood the markets with more funny money and the game players will continue playing but of course, this comes at a high cost: over time, in the future, as per the Chinese 50 Year Plan, this will hammer us.  But right  now, the grasshopper solution is working like a charm.  As always, free funny money made out of thin air saves the day.  It is safe to play on Wall Street even if the game is rigged.  After all, Las Vegas is one big rigged game and did that stop anyone?  Of course not.

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ΩΩThe same goes for the gold bugs: complaining about a rigged market while playing in it is a fool’s game.  Of course, we should reform ALL commodity, FX, bond and stock markets!  That is, regulate them!!!!  GEEZE.  There is no such thing as a ‘free market’.  Insuring that we all have equal access and the same civil rights in markets is a worthy goal and who creates this?

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ΩΩA government regulators and a Congress that isn’t corrupted by Big Bucks!  This also means trending towards various forms of socialism like the kind we see in say, Norway.  Only a Big Government can save us from being looted by individuals who think only of themselves!  Isn’t that funny?  HAHAHA.  Yes, restrictions of freedoms is the road to prosperity for the entire community.  Another thing people find hard to swallow.

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ΩΩEver live in a slum?  I have!  Virtually lawless, no rules, no restrictions, lots of pollution, lots of looting and violence.  People let their dogs run loose.  People throw trash out of their windows (I used to call them ‘human cockroaches’).  People trespass all the time including climbing on roofs (I used to go after these damn roof climbers all the time!) etc.  It is a horror, trust me on this.

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ΩΩI have also lived in rich communities with houses of high value.  You can’t sneeze in public without getting in either social or legal trouble.  Everyone has to paint their houses a certain way, keep their yards looking a certain way, make no noise late at night, no wild parties, no trespassing, none of the things we see in slums.  Anyone trying to start a business in these communities has a devil of a fight, even if it is opening a grocery store!  The result: housing values shoot upwards tremendously!  While the freedom of the slums leads to a collapse in the housing which becomes literal: it vanishes into smoke and ruins.

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12 Comments

Filed under .money matters, gold, Politics

12 responses to “The Wall Street Swap Swamp

  1. if

    Speculators Did Not Cause This Crisis
    Speculators are not responsible for unsustainable Greek pension plans. Speculators are not responsible for unsustainable salaries in Greece.
    Speculators did not lie to the EU or hide Greek debt so that Greece could get into the EU.
    It is not speculators fault the EU looked the other way when the EU admitted Greece, knowing its budget was a sham.

    Goldman Sachs Did Not Cause This Problem Either
    Did Goldman front run trades against Greece?
    Did Goldman peddle bad wares or dump garbage on Greece?
    Did Goldman go to Greece and say “Hey Greece let me hide some of your debt?”

    The answers are …
    No
    No
    No

    It is easy to piss and moan about everything Goldman Sachs did, simply because Goldman did so many things wrong. However, its actions in Greece are not among them.

    Greece went to Goldman, wanted some debt restructured. Goldman Sachs obliged.

    Greece then misrepresented that debt under EU rules to the EU. No one can (at least no one should) blame Goldman for that. Greece committed fraud, not Goldman Sachs.

    Moreover, there is evidence the EU understood Greece was not exactly in good shape, but they wanted Greece in. So the existing EU member countries they looked the other way.

    The EU certainly should have done a better job of investigating Greece’s finances before letting Greece into the EU.

    100% of the blame for this goes to Greece and the EU.
    0% of the blame goes to Goldman Sachs and CDS speculators.

    What is the EU Really Defending?

    Think about the rally cry “We will defend the euro, whatever it takes.”
    What is it the finance ministers are defending? It surely is not the Euro. They are defending their piss poor decision to let Greece into the EU. Moreover, they are printing money to do so.

    Is that supposed to help?

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    ELAINE: They are defending the guys holding Greek bonds. Not the Greek people. And certainly NOT US.

  2. JT

    @if

    I think this weekend it was about Portugal, Ireland and Spain already.
    Greece is too small to cause all this.

    Funny isn´t this the magical amount of 700 billion again?

    That´s the amount the beast eats at one bite nowdays :D .

    Btw. I think I know now the exact moment when the fun ends and why.
    Took me 3 years to figure it out.

  3. Paul S

    Please don’t get me started on that corrupt, lying fraudster Ronald Reagan. But I would like to point out that not only did Reagan pass tax increases, Reagan passed the biggest single tax increase in history. Reagan accomplished this when he wasn’t too busy trying to cut Medicare spending.

    ΩΩΩΩΩΩΩΩΩ

    ELAINE: He didn’t pass higher taxes on the top 1%.

  4. charlottemom

    Thanks for this piece Elaine –
    Funny you bring up the sub-penny computerized increments on the exchanges and their effects.

    A relative on my husband’s side has been for years, on a one-man crusade to abolish the ‘penny-incrementation’ since it was enacted. So much so that on the NYSE they call him Mr. Nickel.

    Vindication

    ΩΩΩΩΩΩΩΩΩ

    ELAINE: I greatly applaud your fine relative.

  5. ilex

    Btw. I think I know now the exact moment when the fun ends and why.
    Took me 3 years to figure it out.

    *********
    Hmmm…would this be the theory that 2012 is the purported planned roll out of world government?

    Or are you calculating something, like when the U.S. will have debt payments beyond our ability to even pretend to pay.

  6. if

    Looking at the current state of the world economy, the underlying reality remains little changed: there is more debt outstanding than is capable of being properly serviced. It’s certainly possible to issue government debt in order to bail out one borrower or another (and prevent their bondholders from taking a loss). However, this means that for every dollar of bad debt that should have been wiped off the books, the world economy is left with two – the initial dollar of debt that has been bailed out and must continue to be serviced, and an additional dollar of government debt that was issued to execute the bailout.

  7. nah

    when the government owns stupid we will be FORCED to buy it
    .
    http://www.cahrecords.com
    .
    facts 101

  8. nah

    http://market-ticker.denninger.net/archives/2010/05/10.html
    On any day where there was a rational market, the concept that the largest single financing source for home purchasers has been for two years and remains insolvent would produce an instantaneous and negative reaction in the stock market, for what should be obvious reasons.

    But in the Ponziconomy, where nobody has to pay any debts (ever), a new economy to which Americans should become completely aware and attuned to (along with acting themselves in this fashion), since they are now being tapped to pay off the debt of default European banks in the name of “Euro Stability”, no such reaction is forthcoming.
    .
    HAHAHAHAHAHAHAHAHAHAHAHA omfg this is funny
    .
    like greece is more corrupt than WE are… and we are bailing THEM out
    .
    FOR EMPIRE

  9. John

    And again you go with the top 1%. *sigh*

    Tax the top .02%. Tax them at 50% and close all loopholes. That will severely curtail their ability to buy off Congress and wreck havoc upon us all.

    Tax all offshored-job profits at 75%, too.

  10. emsnews

    Good idea.

  11. Paul S

    “ELAINE: He didn’t pass higher taxes on the top 1%.” Elaine: are you trying to say Reagan was a fiscal conservative? HAHAHAHA

  12. Paul S

    One more idea. How about making CEO’s AND the Board of Directors for corporations personally liable when it comes to any penalties and fines the businesses they run may incur because of corporate malfeasance? CEO’s and their Boards are always bragging about how great they are, they should be held to account for what they do. Force these arrogant CEO’s to have some skin in the game. I’d vote for this. I recall Ken Lay setting himself and his wife up in some sort of investment that a Court settlement couldn’t touch. Close that loophole as well.

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