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Archive for the ‘derivatives’ Category

Credit default swaps and treason in Greece

The revelations of Credit default swaps and treason in
Greece should start to flash red lights here in Ireland as there are enormous
movement in Irish credit default swaps spreads. With well placed insiders are
able to make huge money and nobody is calling for a public enquire, these financial
instruments of mass destruction are been used and nobody knows who’s benefiting
from them!

Are we not going down the obvious road to default because of
a conflict of interest by those that are charged with this decision??? How do
we know that special interests are not been looked after???

Can we thrust our politicians? I know what my answer is !

AIB has already defaulted see here

The International Swaps and Derivatives Association (ISDA) yesterday said that   a “credit event” had occurred on Allied debt, meaning the bank has   effectively defaulted on its debt, a situation the Irish government has gone   to extreme lengths to avoid.

Credit default swaps (CDS) sold on Allied subordinated bonds and, crucially,   its senior debt, have been activated by the decision of the ISDA   determinations committee that decides whether a borrower has defaulted.

The decision by the committee, which is made up of 10 major banks, follows the   announcement earlier this month by the Irish High Court of a “subordinated   liabilities order” that changed the terms under which junior debt in   Allied was originally sold, forcing holders of the bonds to accept an   extension in the maturity of the debt to 2035.

Allied had already missed a coupon payment on its Lower Tier 2 debt. However,   changes in the law enabled the bank to avoid being forced to be formally   placed in default.

For the market, ISDA’s decision renders this move largely irrelevant as it   means the bank will be categorised as in default in the eyes of investors.(source http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8590428/Allied-   Irish-Bank-has-defaulted-says-derivatives-body.html  )

Mr. Aynsley and the greens playing to the cameras


Mr. Aynsley of Anglo Irish Bank last night hit out at the Green Party’s call for a wind-down of the nationalized lender.
He would wouldn’t he! Nobody likes to have to leave a party in full swing! And he is having a ball at the expense of the Irish taxpayers sitting on a nice fat salary and pension with no pressure to deliver profits.
Disastrous results is the new norm that is expected from his boss the Minister of Finance Brian Lenihan who is an expert at getting his figures wrong .
Any other CEO would be fired on the spot
I would like to know why the greens have now decided to jump ship as it were. with Anglo chief executive Mike Aynsley coming out yesterday warning of “horrendous” results on the way do they know something else that is hidden from the rest of us?
Mr. Aynsley was scathing in his response to the Greens’ comments, saying it was “difficult to understand” “While some of the information is commercially sensitive,(another way of saying we won’t tell you everything least of all the real truth) we are more than willing to sit down with interested parties and take them through it,” he said. “If the Green Party’s Finance spokesman is interested in getting an informed perspective he is more than welcome to meet us,”
Well Mr. Aynsley I’m an interested party along with the rest of the Irish public.
Does your invitation extend to the citizens that have to pay your salary?
No is the answer here again here is some more code
Sources in the bank stressed that it would be “no surprise” if the European Commission imposed some limitations on Anglo’s so-called ‘good bank’
In other words the EU has major doubts about this half-baked idea to Split the bank up
I believe it is an attempt by the boys to dump all the toxic crap onto to the taxpayers of the country and keep themselves in good jobs and run with the choice assets.
In other words good old “asset stripping “to the tune of 10,000,000,000:00 Billion euro
We the public have been lied to from the outset by Brian Lenihan who claimed that the whole Anglo bailout would cost 4.5 billion but so far we are looking at a minimum of 36,000,000,000:00 billion that we know of, but it could be a lot more maybe up to 50,000,000,000:00
The rising cost of rescuing Anglo was partly responsible for a surge in Irish bond yields last week with interest rates reaching highs of 5.9pc.
Another interesting point made yesterday by Minster Ahern was his statement that
“There was no political difficulty with the Greens and indeed Fine Gael as he claimed they were all on board in accepting the governments stated objective for Anglo Irish Bank
So voting for Fine Gael would be a vote to continue the same bailout madness to the top developers and bank fraudsters still sitting on the boards of the corrupt banks.
Now I see why Edna Kenny was so at home, as he crewed around the fairways of the K-club.
Why he is amongst friends and you always look after your friends in the political world .

Transparency in Ireland

Absolutely nothing has changed almost a year later
Cowen is still in charge and is still the 4th most highly paid politician in the world
Just think about that.
Dr. Constantine Gurdgiev sets out the real numbers and they speak for themselves
we are kidding ourselves if we chose to ignore these facts
The insiders still hold all the power in this country and they are responsible for the mess we are in
They are also trying to convince the people of Ireland that they have the answers to our problems
How depressing! We must wake up and rid ourselves of these incompetent baboons that are ruling our country


New reserve currency

This is big trouble for the USA
WASHINGTON (AP) — Regulators on Friday shut down a Nevada bank, raising to 83 the number of U.S. bank failures this year.
The 83 closures so far this year is more than double the pace set in all of 2009, which was itself a brisk year for shutdowns. By this time last year, regulators had closed 40 banks. The pace has accelerated as banks’ losses mount on loans made for commercial property and development.

The Federal Deposit Insurance Corp. took over Nevada Security Bank, based in Reno, with $480.3 million in assets and $479.8 million in deposits. Umpqua Bank, based in Roseburg, Ore., agreed to assume the assets and deposits of the failed bank.
New reserve currency
We in Ireland are still bailing out bankrupt banks at the cost billions we don’t have causing economic depression for this and the next generation!
With 52 thousand students coming out of our universities and no jobs to go to
alone along with 100,000 people all ready left the country ,and another 53 thousand students leaving secondary education this year
How many of them are going into apprenticeships, jobs or is it emigration for the majority for them
The Unelected Cowen and his band of economic terrorists are helping the top bankers of the state live it up while the rest of us struggle to pay our monthly bills
I say let the bankrupt banks pay their own bills and allow them to fail, just like the Americans are doing in the land of Free markets
Allowing the crooks in the Dail to plunder our natural resources and the wealth of future generations is a crime I personally do not want to be responsible for, when our children ask what you did to prevent it I can show I was active in my opposition and I made a stand
What can you say you did??
It is the responsibility of each and every one of us to oppose this band of thieves we must stand up and take action
Do not just stand by and allow our country to be destroyed by the current government who have sold out to the faceless bondholders in Germany , France and England
Stand up and Fight back now!
Put yourself up for election do not give you vote to any of the current TD’s
We need new blood in the Dail and not Family dynasties
We want a general election now and we need a new community party made up of new local people from ordinary backgrounds that will work for an average wage and not clock up huge self given perks, ending up as millionaires while the rest of us struggle to pay for these perks & pensions
We need real servants of the people and not leach’s sucking the rest of us dry like some of the current shower of TD’s are doing
The next general election must end Gombeenisem for good.
Promise yourself this and we just might save Ireland!

Who’s right ,Eurpoe or The USA ??

 

By Brian Parkin and Tony Czuczka


June 7 (Bloomberg) — Chancellor Angela Merkel‘s Cabinet is meeting to tie up a “decisive” round of budget cuts that will shape government policy for years to come, fueling disagreement with U.S. officials who favor measures to step up growth.

Ministers met for 11 hours until early today to identify potential savings of 10 billion euros ($12 billion) a year, after Merkel said Europe’s debt crisis underscores the need for budget tightening to ensure the euro’s stability. A large part of the cuts were agreed overnight, a government official who spoke on customary condition of anonymity said by phone. Talks resumed at 9 a.m. Berlin time.

“It’s not exaggerated to say that this Cabinet meeting will give important direction for Germany in coming years, years that will be decisive,” Merkel told reporters yesterday before ministers met in the Chancellery. She is scheduled to hold talks with French President Nicolas Sarkozy in Berlin later today.

Merkel’s government is reining in its deficit and urging fellow euro-region states to do likewise to thwart a sovereign- debt crisis. The savings risk further alienating voters angry at Germany’s 148 billion-euro share of a European plan to backstop the euro and clash with a June 5 call by Treasury Secretary Timothy F. Geithner for “stronger domestic demand growth” in European countries like Germany that have trade surpluses.

At stake for Merkel is “the credibility of Germany as one of the countries forcing the others to start fiscal tightening,” Juergen Michels, chief euro-area economist at Citigroup Inc. in London, said in a phone interview on June 4. “It’s a very fine line between fiscal tightening and not choking off the economy.”

Bund Yield Record

German 10-year bunds rose, pushing the yield down to a record low today, as concern the debt crisis may spread boosted demand for the perceived safety of the 16-nation currency’s benchmark securities. The yield fell three basis points to 2.55 percent as of 8:52 a.m. in London. It reached 2.548 percent, according to Bloomberg generic data, the lowest since at least 1989, the year the Berlin Wall fell. The euro fell 0.2 percent to $1.1940 at 10:49 a.m. in Frankfurt.

Tax increases, cuts in welfare and jobless benefits and the loss of about 10,000 civil service posts are among the German measures being considered, Deutsche Presse-Agentur reported, citing unnamed government sources. Utilities face 2.3 billion euros in higher taxes if parliament agrees to extend the running time of German nuclear-power plants, the news agency said.

‘No Taboos’

The Defense Ministry said last week there are “no taboos” when it comes to potential savings. Merkel’s Cabinet seeks to cut almost 30 billion euros to 2013, Bild newspaper said June 5, without saying how it got the information.

Germany’s budget deficit is forecast to rise to 5.5 percent of gross domestic product this year. While that’s less than half the 13.6 percent of GDP in Greece last year and smaller than the U.K.’s 11.1 percent for the fiscal year to March 2010, it’s still almost double the European Union’s 3 percent limit.

Germany’s top AAA rating is at risk unless Merkel’s government agrees on deficit cuts and persuades other euro-area nations to do likewise, Kurt Lauk, who heads a business lobby within Merkel’s Christian Democratic Union party, told reporters on June 2. “We’re at a decisive turning point,” he said.

Spain, which lost its top grade from Fitch Ratings last month, has seen government borrowing costs soar to a euro-era record, even after Prime Minister Jose Luis Rodriguez Zapatero announced the deepest budget cuts in at least three decades.

Roubini on Stimulus

While countries with large debt such as Italy should trim deficits and contain wages, Germany should spend more and raise wages to help fuel demand in the euro area, Nouriel Roubini, the New York University economist who predicted the financial crisis, said in an interview.

“Germany can afford having more stimulus not just this year but next year,” Roubini said June 5 in Trento, Italy.

Finance Minister Wolfgang Schaeuble, in an interview en route to a meeting of Group of 20 counterparts including Geithner in Busan, South Korea, said there’s no disagreement “in principle” over the need to reduce deficits, only over the pace at which action is taken.

While “it’s possible that the U.S. could use accelerating growth over time to help them reduce their deficits, in Europe we can’t count on growth alone to mend our fiscal position,” Schaeuble said June 4. “I don’t share the view that reducing deficits and strengthening growth are mutually exclusive.”

To contact the reporters on this story: Brian Parkin in Berlin at bparkin@bloomberg.net; Tony Czuczka in Berlin at aczuczka@bloomberg.net. source http://www.bloomberg.com/apps/news?pid=20601087&sid=aVGqrlbamDjE

 

 
May 26, 2010Don’t Doubt Bernanke’s Ability to Create Inflation

With the Dow Jones now down 11% nominally from its high last month, NIA has been getting hundreds of emails and phone calls asking if there is any way we could be wrong about the threat of hyperinflation in the U.S. and if indeed deflation is the real problem we need to be worried about. The names Nouriel Roubini, Robert Prechter, and Harry Dent get mentioned to us a lot, with many NIA members asking why these so-called “experts” believe deflation is in our future.

Roubini, Prechter and Dent have been wrong about the overwhelming majority of their economic forecasts over the past decade. When it comes to their latest predictions about deflation, they will actually be right to some extent. We will see deflation in some assets like stocks and Real Estate, but only when priced in terms of real money – gold and silver. In terms of dollars, prices for pretty much all goods and services are guaranteed to rise dramatically over the next few years. Creating inflation is the only thing in the world Federal Reserve Chairman Ben Bernanke knows how to do and is good at.

During the past week, the mainstream media has shifted from saying we are experiencing an “economy recovery” to now saying we are at risk of a “double dip recession”. Nothing fundamentally has changed in our economy. The fact is, the U.S. economy has been in a recession since mid-2000. All government reported positive GDP growth since mid-2000 has been due to nothing but inflation. Our economy should have experienced a depression in 2001 and an even greater one in 2008, but the depression has been temporarily avoided at the expense of an inevitable Hyperinflationary Great Depression down the road.

NIA believes it is impossible for the U.S. to experience price deflation when the Federal Reserve has held interest rates at 0% for the past 17 months. Sure, there will probably be a second wave of mortgage defaults that could cause another round of forced liquidations on Wall Street, but during any future period of forced liquidations, we doubt the U.S. dollar will still be looked at as the “safe haven” it was in 2008/2009. Gold and silver will soon be looked at as the only real safe havens because they are the only assets that provide protection from both a deteriorating economy and massive inflation. Precious metals will decouple from the Dow Jones and we will begin to see gold and silver rise at the same time as the stock market falls.

Bernanke was questioned yesterday following a speech at the Bank of Japan about whether a 4% inflation target would be better than the Fed’s current inflation target of 2%. Bernanke responded that “it would be a very risky transition” if the Fed changed their inflation target, claiming that U.S. inflation expectations are currently “very stable”. (NIA estimates the real rate of U.S. price inflation is already north of 5%.)

Unfortunately, no policymaker in the world is smart enough to accurately control the rate of price inflation through the manipulation of interest rates, and certainly not Bernanke. It’s mind-boggling to us how the mainstream media could believe anything Bernanke says about inflation after how wrong he has been about everything else. Maybe the press has already forgotten that it was Bernanke who in July of 2005 said, “it’s a pretty unlikely possibility” that home prices will decline across the country, “house prices will slow, maybe stabilize but I don’t think it’s going to drive the economy too far from its full employment path”. We are 100% sure that Bernanke will be proven wrong again when it comes to inflation.

The U.S. Dollar Index has rallied from 75 to 87 since December and is approaching its high from March of 2009 of 89. This has given Bernanke the cover to keep interest rates at a record low 0%, but NIA believes Bernanke is misreading these economic signals. When the U.S. Dollar Index reached its high last year of 89, gold was only $900 per ounce. Today, gold is approximately $1,200 per ounce. The fact that gold has held up so strong despite a rapidly rising U.S. Dollar Index, proves that our financial system is getting ready to overdose on excess liquidity. The U.S. Dollar Index has rallied only because it is heavily weighted against the Euro. The Euro is now overdue for a huge bounce, which we believe will send the U.S. dollar crashing while sending gold to new record highs.

It’s not good for us to pay too much attention to short-term volatility in the financial markets. Short-term “noise” often causes investors to second guess what they know is true. In our new documentary ‘Meltup’ (which has now surpassed 441,000 views in 10 days) we said, “If stocks were to see a nominal decline one last time, we will likely see Bernanke shoot up his largest ever dose of quantitative easing, which could turn the current Meltup into hyperinflation.”

We are seeing signs of this coming true already. Washington is now calling for another stimulus. Larry Summers, senior economic adviser to President Obama, has asked Congress to begin drafting a new stimulus bill in an attempt to prevent a “double dip recession”. The proposed size of this new stimulus is so far only $200 billion, much smaller than the last $787 billion stimulus bill. However, we are sure Congress will increase the size of it, especially if stocks continue their nominal decline. The new stimulus bill will likely coincide with trillions of dollars in additional quantitative easing by the Federal Reserve.

Source http://inflation.us/dontdoubtbernanke.html


 

The major difference is that the Americans want to print money and spend

And the Europeans and particular the Germans want to tighten and save and stop waist!

To my mind the most prudent are of course the Europeans but it would suggest that there is a lot more pain heading our way ,with our European partners in contraction mode and the Germans demanding more austerity measures from all the other EU countries I can’t see where the jobs growth will come from

Even when our own incompetent government will be telling that Ireland is now growing again

Without growth in jobs this is just a mirage that soon will fade again.

The Billions that are been poured down the toxic banks toilets will not save or generate jobs

the billions so far have not even stabilized the situation, and with the next phase of the depression now coming down the track at us the government will need to borrow more money to plug even more holes in the toxic Anglo Irish Bank, together with the disaster that is NAMA there is no way we can borrow enough money and remain financial viable as an independent sovereign state !

Somebody please stop this madness

David Mc Williams has a new article ” Kill Anglo to save Ireland” (http://www.davidmcwilliams.ie/2010/06/07/kill-anglo-to-save-ireland) all independent minded people should take the time to read

We cannot afford to just sit back and allow our sovereign nation disappear in an ocean of debt

we owe it to our children and ourselves .


Preliminary findings on the Dow Crash

 

ON the 06.05.2010 US stock markets had a mini crash, with the Dow falling 1000 points in 11 minutes .

It recovered and eventually closed down 629 points down.

I believe we will see more of these mini intraday crashes and they may even become severe we could even see intraday drops of two thousand points or even more,

the complexity of the trades now been used are far beyond the normal traders and computers are now using Flash trades done in minutes and seconds and billions are at stake, most of this done in shadow derivatives that have a direct impact on what we the normal punter believe is the market but of course it no longer the case.

These shadow markets are where the real markets are to be found, and it is an “unregulated market” and exclusively the preserve of the big Hedge funds and the large global bank players.

To put it in a nutshell the Dow and the NASDAQ are just side shows for the foot folk and is totally manipulated .So when entering this market take this into consideration in you trades!

Attached is a report of the preliminary findings by the staffs of the U.S. Commodity Futures

Trading Commission and the U.S. Securities and Exchange Commission. The

Commissions have expressed no view regarding the preliminary analysis or conclusions

Contained herein.

full PDF report here Flash Crash Report[1]

Recent Market “Events”

If like me you have become puzzled by the recent Market “events” you should find this excellent article sent to me to-day helpful

Recent Market “Events”


Following quite a number of requests from students and clients this brief will deal with my understanding of what transpired last Thursday the 6th. May when just after 2.30 PM the Dow Industrials collapsed by nearly 10% and then suddenly recovered in 11 minutes.

The implications of what occurred are far reaching and unless the regulatory issues are resolved we can expect similar “events” of like nature.

In the main to comprehend the situation in the “Market” one must realise that there are now many markets. In the good old days, in America, all we had was the New York Stock Exchange where real people dealt with real market makers in real time. But computers in general and the internet in particular have changed all that. In addition as well as the “public market” we now have the (OTC) Over the Counter Market. The OTC is basically a private market between banks and large institutions which has little or no active supervision. I find this development strange because the trading activity on the OTC is 60 trillion dollars annually, while turnover on the public market is 5 trillion. Now in addition to public markets and private markets let us now bring in “Dark Pools” to our explanation.

“Dark Pools” What are they? ” Dark pools of liquidity” are crossing networks that provide liquidity that is not displayed on order books. This situation is highly advantageous for institutions that wish to trade very large numbers of shares without showing their hand. Dark liquidity pools thus offer institutions many of the efficiencies associated with trading on the exchanges’ public limit order books but without showing their actions to other parties. This is achieved because neither the price nor the identity of the trading entity needs to be displayed. Many of the OTC “exchanges ” used by the dark pools use high frequency trading programmes to minimise order size and maximise order execution. Now you may think that this manner of doing business on the “stock market” is carried out by minor unknown entities but this is not the case. Below I list the Independent dark pools, the broker-dealer dark pools and exchange-owned dark pools.

Independent dark pools: Instinet, Smartpool, Posit, Liquidnet, Nyfix,Pulse Trading, RiverCross

and Pipeline Trading.

Broker-dealer dark pools: BNP Paribas, Bank of New York Mellon, Citi, Credit Suisse, Fidelity, Goldman Sachs, Knight Capital, Deutsch Bank, Merrill Lynch, Morgan Stanley, USB, Ballista ATS, BlocSec and Bloomberg.

Exchange-owned dark pools: International Securities Exchange, NYSE Euronext, BATS Trading and Direct Edge.

When you understand that all the big players in banking and finance are using the OTC system and have a turnover 12 times that of the “public” markets you get to wonder why there is a New York Stock Exchange at all. Well you see there is a big difference between the OTC “private” market and the NYSE “public” market. The NYSE is comprised of market makers. These market makers are specialists who are obliged to buy and sell on their own and the publics’ account to create a liquid active market. The OTC market faces no such obligation. Over the past number of years attempts have been made to abolish the specialist role and remove the “human” engagement.

What happened on Thursday was the high frequency OTC trading programmes

created “trades” which did not make sense to the NYSE specialists. Accordingly the NYSE stopped handling orders so that the situation could be analysed. The OTC computerized networks then began rerouting orders to other “markets” and with no “public” markets participating prices collapsed through sell stops and the rest is history.

There are many lessons to be learned from this event. But for me the main question is whether a “market” that is only 8% “transparent” is actually a market (5 trillion as a ratio of 60 trillion). Going forward it is obvious that additional “circuit breakers” must be brought in to modify the exchange activity of high frequency dark pools. Whatever the eventual fallout from last Thursday’s events are it is clear that the issues I have touched upon are only the tip of the iceberg and any trader or investor worth his salt must reflect upon what happened and adjust his or her strategies appropriately.

Wealthbuilder.ie


Reggie Middletons take on Goldman Sacks

Can You Believe There Are Still Analysts Arguing How Undervalued Goldman Sachs Is? Those July 150 Puts Say Otherwise, Let’s Take a Look

To begin with , Goldman Sachs produces more accounting revenue and accounting profits than its peers. This is because Goldman benefits from virtual monopoly pricing and advantages in several markets. Despite this advantage, when one factors in economic RISK and the cost of capital, Goldman doesn’t fare nearly as well as the sell side makes it seem. Of course, the sell side rarely attempts to quantify risk, which is cool until reality rears its (sometimes ugly) head. Before we get to risk adjust returns, let’s look at the simple accounting numbers and attempt to throw some logic on them…


Above, you see that GS has enjoyed a significant premium over its peers in terms of book valuation. This premium has actually increased over the past year. Let me be the one to remind you that no US company has every survived a criminal judgment, none. Arther Anderson was driven into bankruptcy from charges stemming from the Enron collapse, and that is despite the fact that the Supreme Court overturned the guilty verdict! Assuming, for the benefit of the doubt, GS can somehow set precedence, or more realistically, criminal charges are not filed, we still have to contend with:

  1. the SEC lawsuit
  2. the increased regulation, in particular the Volcker rule and derivatives oversight
  3. follow on litigation, which is virtually guaranteed, and virtually guaranteed to be extremely expensive, time consuming, and distracting from the core businesses.
  4. a general decline in business since we are coming off of a credit and risky asset boom and going into a sovereign debt crisis that will make FICC much less predictable (seeThe Next Step in the Bank Implosion Cycle???
    for a more on how this could end with the Pan-European Sovereign Debt Crisis drama unfolding).

  5. Taking all of this into consideration, you tell me… Does Goldman really deserve to be trading at such a premium considering the myriad risks it is currently exposed to PLUS the murky business and regulatory environment? They are also losing talent on the sales side, and at the MD level to boot. Today’s market is starting to see things the Reggie Middleton way.


    Now, let’s factor in some more reality. No matter what your broker says about accounting earnings and revenues, they don’t come free. They all have a cost of capital attached to them. Let’s reference an excerpt from When the Patina Fades… The Rise and Fall of Goldman Sachs???

    GS return on equity has declined substantially due to deleverage and is only marginally higher than its current cost of capital. With ROE down to c12% from c20% during pre-crisis levels, there is no way a stock with high beta as GS could justify adequate returns to cover the inherent risk. For GS to trade back at 200 it has to increase its leverage back to pre-crisis levels to assume ROE of 20%. And for that GS has to either increase its leverage back to 25x. With curbs on banks leverage this seems highly unlikely. Without any increase in leverage and ROE, the stock would only marginally cover returns to shareholders given that ROE is c12%. Even based on consensus estimates the stock should trade at about where it is trading right now, leaving no upside potential. Using BoomBustBlog estimates, the valuation drops considerably since we take into consideration a decrease in trading revenue or an increase in the cost of funding in combination with a limitation of leverage due to the impending global regulation coming down the pike.


    Remember, practically everybody poo-poohed my research and opinion in 2008 when I said Goldman was drastically overvalued – Reggie Middleton on Risk, Reward and Reputations on the Street: the Goldman Sachs Forensic Analysis. Those 600% to 1000% gains on the put options proved otherwise. Speaking of which, those July 150 puts… Can you smell what the forensic analysis is cookin’???


    For those who haven’t read my review of Goldman’s latest quarter performance, please do: A Realistic View of Goldman Sachs and Their Latest Quarterly Results

    source
    http://boombustblog.com/reggie-middleton/2010/04/30/can-you-believe-there-are-still-analysts-arguing-how-undervalued-goldman-sachs-is-those-july-150-puts-say-otherwise-lets-take-a-look/

Keiser report No.19

If you want to really know what is going on then look at this video
covered in the video is Gold, IMF, UK deficit, George Soros, and many more stories

Is the Irish government involved in these kind of financial tools and were there advised by Goldman sacks?

Can they categorically state on the floor of the Dail that they have no exposure to any of these kinds of toxic synthetic financial tools?

Can they categorically state that none of the Irish financial instustions have any of these derivatives on their books and if they so state then why are they looking for traders in these kinds of derivatives at NAMA

see link http://thepressnet.com/2010/01/16/irish-banks-derivative-trading-losses/

It is my belief that not only are the banks up to their tonsils in these derivatives and are hiding huge losses, the Government are actively concealing such losses from the General public.

we may even be in the same situation as Greece ,because the government will not come out and deny that they have not used the services of Goldman Sacks in the setting up of such derivatives.

The derivatives market : April 2010

 

A major crisis is building in the derivatives market yet a cabal on Wall Street is blocking the formation of a clearing house that could stop the next financial meltdown, a senior official with the Kauffman Foundation said on Tuesday…

The need for disclosure in the swap markets is enormous, yet the will to act is missing because of a small cadre of special interests, said Harold Bradley, who oversees almost $2 billion in assets as chief investment officer at Kauffman…

“I believe we are in a cabal. There are five or six players only who are engaged and dominant in this marketplace and apparently they own the regulatory apparatus,” he said. “Everybody is afraid to regulate them.”…

U.S. and European officials are trying to craft new rules to regulate the $450 trillion private derivatives market in broad efforts to avoid another financial crisis…

Bradley said those efforts fall short…

Instead, he said regulators have found a boogeyman in high-frequency trading, which has taken the focus off the highly levered derivatives market…” (Emphasis added.)

“Wall Street cabal seen derailing serious swap reform”
Herbert Lash, 3/30/10
http://www.reuters.com/article/idUSTRE62T5RD20100331

“The dollar-based monetary system is no longer adequate for a larger and more integrated world economy…

Prominent developing economies are increasingly demanding to be included in any multilateral dialogue that aims to shape the new economic order…”

“Beyond the Dollar: Rethinking the International Monetary System”
The Chatham House Report, March 2010

The Federal Deposit Insurance Corp. is trying to encourage public retirement funds that control more than $2 trillion to buy all or part of failed lenders, taking a more direct role in propping up the banking system…

Direct investments may allow funds such as those in Oregon, New Jersey and California to cut fees for private-equity managers, and the agency to get better prices for distressed assets, the people said. They declined to be identified because talks with regulators are confidential…

Oregon’s retirement fund may contribute $100 million as regulators seek “the support of state pension funds to solve the crisis surrounding ongoing bank failures”… New Jersey’s fund may also participate…

The FDIC shuttered 140 lenders last year and expects the tally may be higher in 2010… Pension funds, whose 100 largest members manage $2.4 trillion, could provide capital to acquire deposits and outstanding loans from collapsed banks

Investing in distressed banks doesn’t always pay off, as the U.S. Treasury Department learned with the Troubled Asset Relief Program. At least 60 lenders skipped some of their promised dividends to the TARP fund

…The California Public Employees’ Retirement System, the largest U.S. public pension fund, said in a Feb. 16 presentation that one of its goals is to increase its “co-investments” in transactions alongside money managers…

Known as Calpers, the pension fund plans to “explore unique structures with select general partners”…” (Emphasis added.)

“Failed Banks May Get Pension-Fund Backing as FDIC Seeks Cash”
Dakin Campbell, Bloomberg BusinessWeek, 3/8/10

“Alfredo Ley, founder of Ley Investor B.V., an investment management and research firm in the Netherlands, yesterday published a fascinating review of a 1989 academic paper written by the great rationalizer of surreptitious government intervention in the gold market, former Harvard professor and former U.S. Treasury Secretary Lawrence H. Summers, now director of President Obama’s National Economic Council…

Ley’s review of that paper, headlined “From the Horse’s Mouth: Lawrence Summers on Market Manipulation in Times of Crisis,” construes the paper as an argument for government to respond to financial crises by propping up asset prices and rigging currency exchange rates, presumably also largely surreptitiously…”

“More advocacy by Obama’s top economist for sneaky market rigging”
The GATA Dispatch, 3/27/10

The Threat to Wealth, including a Threat to that (formerly most sacrosanct) category, Pensions, is just beginning, though the Markets now appear to have calmed. But that calm is The Eye of a Market Hurricane which began in 2008, and The Eye is slowly but inexorably moving.

The Megabankers have apparently encouraged FDIC’s push to use Pension Fund Assets to buy often-still-Toxic “Assets” of Failed or Failing Banks. If that Push is successful, it would result in yet another massive benefit to Megabankers.

It would remove failed or failing Assets from the banking system (to the detriment of Pensions) and leave the mega-Bankers in a position to acquire the still-performing Assets in that System “on the cheap”.

It would not be the first such acquisition nor would it likely be the last.

Deepcaster and others reported recently on a similar Mega-Bank-generated Plan to force Pension Funds to Buy U.S. Treasuries – not such a good idea in light of the U.S.A.’s prospective (by 2028) $20 Trillion plus National Debt and $100 Trillion plus downstream unfunded liabilities, for Social Security, Medicare, etc. Given this Reality it is highly likely long-term U.S. Treasuries will decline in value over the next few years.

And Deepcaster’s Long-standing claim that one goal of the Mega-Bank led Cartel’s* ‘End Game’ is the Destruction of the U.S. Dollar, is supported by the Chatham House Report referred to above which serves as a Trial Balloon. And as the degradation of the purchasing Power of the U.S. Dollar proceeds, what happens to the value of the Dollar-denominated Assets. The Answer is unfortunately clear.

The foregoing are just three more examples of the potential appropriation of Citizen Investor Assets, just as the 2008-2009 Market Crash resulted in a massive Wealth Transfer (of some $11.9 Trillion in gain(!) in the six months of July through December, 2008 – the six months encompassing the Market Crash when Investors world-wide were losing Trillions). Verify this Gain for yourself at the Central Banker’s Bank’s own website – http://www.bis.org, Path: statistics>derivatives>Table 19.

If the Investor/citizens of the U.S.A. (and nations around the world) do not stop the Musical Chairs-like “Game” of Bailouts of and Asset Grabs by the Mega-Banks in which Investor/Citizen/Retiree/Taxpayer Assets are appropriated one by one, then all will ultimately share impoverishment.

One step to stop the grab is to Audit and then Abolish the private for-profit Fed, leader of the Cartel.*

Despite the Hot Air from Washington, DC, it looks as if the chances for passage of Real Financial Reform Bills – including Rep. Ron Paul’s Audit and Abolish The Fed bills – are slim to none in this session.

Indeed, the simple solution to the “Too Big to Fail” problem is not receiving serious consideration in Washington, DC – yet. That would be, of course, to break up the Mega-Institutions and parcel out their Assets and functions to regional and state Banks.

Official Numbers       vs.      Real Numbers

Annual Consumer Price Inflation reported March 18, 2010
2.14%                              9.39% (annualized March 2010 Rate)

U.S. Unemployment reported March 5, 2010
9.7%                               21.6%

U.S. GDP Annual Growth/Decline reported March 26, 2010
0.06%                              -4.62%

Significantly, last week’s weak Bond Auction (resulting in a spike in rates) and the release of figures showing February was the worst month for new House sales ever, show that Main Stream financial Media Happy Talk about the Bullish Equities Markets and “Recovering Economy” is just so much hot air.

Sooner rather than later, these Realities are going to rear their ugly heads in an Equities Market Takedown. Facilitating that Market Takedown is the fact that Equities Markets are generally considerably overvalued, with the S&P P/E Ratio at about 23 to one.

Some of you will remember the period leading up to the Market Crash of 1987. For months, the Fundamentals and Technicals deteriorated while the Equities Markets continue to rise.

The same was true of the period leading up to the Internet Bubble Burst of 2000. The bubble “should” have burst earlier than it did. But the shorts had to wait for months before profiting.

In our view, a similar situation exists today. The Stimulus Bills plus positive Main Stream Media “spin” plus Cartel Intervention have created a “Sugar High” in the Markets. But it is highly unlikely it will last.

And it is important to note that: Market Crashes and Takedowns typically strike suddenly, before one has time to “get short, or exit longs”.

Thus, in our view we are in the Calm Eye of the Markets’ Hurricane, but that Eye is slowly, but inexorably moving. We shall soon be in the Hurricane again.

Will The Cartel employ a chunk of the $437 Trillion in dark OTC Interest Rate Contract Derivatives they have available for Market Control to fuel another Bond Rally soon?.

“We Must Break Up Big Banks and End Too-Big-to-Fail, Says Simon Johnson”
Tech Ticker – Yahoo, 4/1/10

source link see full article: http://www.financialsense.com/fsu/editorials/deepcaster/2010/0401.html

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