So, it turns out that the mass murderer was also a cheater who conned people out of their life savings. Maybe Sgt. Bales can replace Mr. Smith who recently stormed out of Goldman Sachs and denounced them for being a bunch of crazy crooks! Also, US bonds will cost more and more and since the US government funds the mortgage markets, interest rates on mortgages will go up, too. Bad news for people hoping this massive, historic housing bubble will be fixed via cheap loans.
For a while, the killer who rampaged in the homes of foreign people we claim we are protecting, all the testimonials were about what a fine person he really was. But now the bad news comes: Bales was found liable in financial fraud
For the staff sergeant held in the Afghanistan massacre, a career as a stock trader appears to have ended months after he was accused of engaging in fraud while handling the retirement account of an elderly client in Ohio.
A recent study suggested that at least 10% of the guys running Wall Street games were sociopaths. Perhaps 50% are sociopaths and 10% are outright homicidal psychopaths. The massive wreckage of our entire banking system, our political system and our foreign affairs can be traced back to Wall Street’s greed. If a flood of money didn’t pour into the maws of the top elites of Wall Street, they would not have the huge funds available for bribing Congress or meddling in our elections or running for President.
ZIRP loans won’t last forever. In Japan, they got away with two dozen years of ZIRP but that entire system runs on fumes now and is in full collapse. Here, we still have some input from reality, that is, our government, unlike Japan, sells bonds overseas. So, Don’t Ignore Quiet Surge in Bond Rates | Fox Business
The nature of inflation is, it takes off like a rocket. The energy builds up. The governments go into denial. Then, they do stupid things (print more money, start more wars, refuse to tax the rich) and it shoots up quite suddenly. I still remember Nixon’s ‘wage/price controls’. The owners of our businesses were quite pleased with the wage control part but hated the price control end.
Today, they have a perfect world: wages go down and down due to free trade forcing us to compete with foreign labor and foreign currency exchanges that are not in our favor while businesses can raise prices to their heart’s content. And up and up goes the prices and now we can buy, thanks to dropping wages and rising prices, only survival things like food and fuel. Both of which shoot relentlessly upwards.
Now, thanks to the warmongering of the US and Israel, we have very high oil prices going up and up and Iran is threatening to make it impossible to ship oil from any of the Gulf states. Up it goes, yet again! So, just like with Nixon, just like with Carter when two separate wars caused sudden oil price spikes, we will get raging inflation since wages can’t drop even more.
“The backup in the 10-year U.S. Treasury bond yield since late February certainly reflects mounting confidence in the strength and sustainability of economic growth,” Ed Yardeni, president and chief investment strategist at Yardeni Research, wrote in a note.
On the other hand, a sudden leap in Treasury yields could slow the economy by raising the price of credit linked to the 10-year note such as mortgages.
The U.S. government debt market last week suffered its worst week since June, as pension funds, insurance companies and other large fund managers began re-allocating money into stocks and other growth-oriented investments.
Afternoon selling by mortgage companies pushed bond prices to session lows, analysts said. Mortgage companies typically sell their hedges that use Treasuries and interest rate swaps because they lose value as yields are rising quickly.
This is a classic catch-22: interest rates are not rising due to things going well. They are rising due to high oil costs driving basic inflation. This is ‘stagflation’ a word invented during the Ford Presidency when he wanted to ‘Whip Inflation Now!’ Maybe I am the only American who remembers WIN. A lot of the things happening now happened back then and naturally, this is why virtually no news articles or even blogs explaining things mention Nixon, Ford and even Carter when talking about the future.
Well, the future is what it was back then: a repeat including the US wanting a massive Cold War with Russia and China while fiddling in the oil fields of the Middle East. Back then, Iran was the Evil Empire, too. And cut oil exports.
Back to Wall Street: Goldman Rejects Claims Made by Outgoing Executive and do note the guy’s name is Mr. Smith, not Mr. Goldstein. That is, he isn’t a tribal member so he told people what is going on seemingly innocently. That is, as an outsider, he saw what lay inside the cocoon. And it is ugly. Really ugly: total greed, like the massacre soldier, no regard for humanity or honesty and on a rampage. Naturally, the gnomes running the joint are angry someone is holding their paws to the fire so they put out this Goldman Memo: We Were Disappointed to Read Assertions.
Tut, tut. How dare anyone accuse them of asserting that they are a bunch of frauds, crooks or sociopaths. Talking about fraud and sociopaths, here is this last quarter’s Derivatives Report from the Office of the Comptroller of the Currency: http://www.occ.gov/topics/capital-markets/financial-markets/trading/derivatives/dq311.pdf
So, in this table, these contracts’ value rose over 50% in the most recent quarter. No wonder Wall Street was so happy this winter. As the Occupy Wall Street protestors were all violently removed, the sneers of the traders and operators were on full display. When the hedges of the banks operate on one end of the teeter totter, the other end goes up or down the opposite degree. So 53% positive fair trade becomes 53% derivative payables.
Look how the interest rate swaps grew! In 1990, they were miniscule. In 2001, only 40 trillion. By today, 200 trillion. This is insanity, of course, and Wall Street knows this. The game they are playing is called ‘hide the capital’. That is, all capital moves to the PRIVATE accounts of the Wall Street game players while it is cleverly replaced with derivative deals which run in the multiple trillions while having virtually no capital base left, it being eaten away by the operators of the markets. THIS is the real scandal, not just the fact that Goldman Sachs, for example, cheats chumps wanting to ape the operators and strip us of all capital.
And Goldman Sachs is very deeply involved in this stripping of capital! Even so, today’s derivative exposure is less than in 2009. But it dwarfs all the other top game operations run on Wall Street. By a long shot. And so when is Congress going to hold hearings about all this?
The same day they decide to hold hearings about how AIPAC controls our State Department, naturally: never.
And the Bank of America stumbles onwards with rumors biting its tail: Bank of America Shares Dive After Crossing $10 – Deal Journal – WSJ
While those concerns might not be scary enough to justify the stock trading at $5, they are concerning and don’t exactly justify a soaring price, many analysts have argued. Wall Street’s average price target remains below $9, according to FactSet, and has shown very little movement even as the shares have kept rallying recently.
Morgan Stanley, for instance today, upped its earnings estimates in the first quarter and for 2012 for BofA, but even as it lifted its price target it only moved it to $9 from $7.
And of course, the Bank of America is still one of the top 5 holders of the Derivative Beast:
$55 TRILLION exposure. Good lord. The three top banks are the three biggest game players and this is Russian Roulette which is why all the bankers in the West, the NATO countries, were in hysterics about Germany, which has capital, save them all from any and all defaults. And yet, the defaults are still lining up and coming one after another! Many, many countries are now in deep trouble due to funding their home banking systems without capital.
One nation doing this is the UK: David Cameron unveils plan to sell off the roads | Politics | The Guardian
The prime minister will say: “We need to look at innovative approaches to the funding of our national roads – to increase investment to reduce congestion. Road tolling is one option, but we are only considering this for new, not existing, capacity. For example, we’re looking at how improvements to the A14 could be part-funded through tolling.
“But we now need to be more ambitious. Why is it that other infrastructure – for example water – is funded by private-sector capital through privately owned, independently regulated utilities, but roads in Britain call on the public finances for funding?
“We need to look urgently at the options for getting large-scale private investment into the national roads network – from sovereign wealth funds, pension funds, and other investors. That’s why I have asked the Department for Transport and the Treasury to carry out a feasibility study of new ownership and financing models for the national roads system and to report progress to me in the autumn.”…
Cameron will say: “The truth is, we are falling behind … our competitors. And falling behind the great, world-beating, pioneering tradition set by those who came before us. There is now an urgent need to repair the decades-long degradation of our national infrastructure and to build for the future with as much confidence and ambition as the Victorians once did.”
The US has been doing this for a long, long time. Bit by painful bit, parts of the public infrastructure are being sold off to foreigners and then the tax revenues or the fees and tolls are sent overseas. This is exactly what the Spanish Empire did until it went bankrupt and stayed pretty much poor…for several hundred years. Yes, when a government goes bankrupt, they don’t retain their empires, they become POOR. For a long, long time. This happened to China, too, and Rome. It is an old story.
The shadow transport secretary, Maria Eagle, said: “Motorists already suffering from record fuel prices now face a road charging free-for-all, adding to the cost of living crisis facing households up and down the country.
Instead of easing the burden on drivers and boosting our stalled economy through a temporary cut in VAT, ministers look set to let private companies take over the strategic road network and charge drivers for access.
And then there is climate change: the idea is not to give us better energy systems or help us buy better transportation, it has become all about eliminating our participation in various systems. We are to shiver in the cold, walk everywhere and live in misery as peasants while the elites drive fast cars, fly jets and live in immense palaces, all of which are funded by stripping away public systems into private hands while funding loans at super cheap rates via government fiat while at the same time, stripping all capital from systems and holding it for themselves just like Steve Jobs held billions in accounts rather than spread the wealth.
This ‘hoarding’ factor is huge. The rich are never happy with immense wealth because their brains go into high gear and want infinite wealth and thus, the richer they are, the harder it is to share with anyone, even family members. This is part of the ‘sociopath’ thinking epidemic on Wall Street and in the richest people on earth who are not happy sharing even a crust of bread with the rest of humanity.
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