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Pirates Of The ‘Carry-On-Regardless’

Posted by jayfromeire on Mar 25th, 2010 and filed under Economic Crisis, International. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry from your site


William K. Black wrote a book in 2005 titled “The Best Way to Rob a Bank is to Own One” where he outlined the fraud and corruption at the highest levels of international banking.                   

What we are seeing now in the light of massive bonuses, involving billions of Euro, Dollars and Pounds, being handed out to executives and lower level employees, is simply the same culture of fraud and corruption which has seeped down to the lower levels of an industry which has utterly disregarded any pretence of moral conscience.       

           
 

This industry has deliberately plunged the world and the majority of ordinary people into a period of extreme doubts and anxieties over the future of themselves, their children and future generations.        

The climate of greed in this industry has undeniably never changed. Whilst the international bankers have absconded with the wealth of nations, their cronies in subsidiary banks, where ordinary people’s financial security is crucial, are now doing the same. These lower level parasites continue to coerce governments into passing legislation, in Ireland’s case, NAMA – (Never Any Money Again).                   

This is happening across the developed world and allows governments, without the consent of its citizens, to literally tax working people to pay for the illegal and corrupt practices of a criminal cabal responsible for the state of the world today.                    

This is piracy of the highest order, and the ordinary people paying for this, for generations to come, will be born into a financial bondage to the coming world state which amounts to nothing less than SLAVERY.               

We are being financially raped by the banking elite who simply demand that our government pass the very legislation which will condemn the citizens to a future of indentured servitude. We, the taxpayers, will have to cough up our last cent to the parasites of finance to furnish their lavish lifestyles of champagne parties and fancy yachts, whilst we are left struggling to make ends meet.                 

The government tells us we need to get through this current financial crisis together, by pulling together don’t you know, whilst they maintain their positions of power over us and live the highlife with their banker and building developer buddies. They don’t take responsibility for, or account to the public for, the catastrophe they’ve inflicted on families and businesses in this country. At the same time they try to justify their uselessness and inflated salaries, presumably in line with their inflated egos and ludicrous self belief in their value to society, whilst at the same time maintaining their massive expense accounts and lavish pension arrangements which nobody else in the country is entitled to.

machholz responce 

Careful what you ask for!

With the cries of change the government getting louder, I caution and ask the question will we be any better off?

Make no mistake I want to have a change of government and I want to jail All the corrupt Basta***

Responsible for the mess we are now in.

What exactly will the new government do about the political gangsters responsible for the mess we are now in?

see posting

The Economist comments

 

Mar 17th 2010, 15:50 by R.A. | WASHINGTON

PAUL KRUGMAN continues to push back against my criticism of his get-tough approach to the Chinese dollar peg. New posts on the subject are here, and here. The first concerns the question of how much of the world is in a liquidity trap, which is important because:

We’re currently living in a world in which both central banks and governments are unable or unwilling to pursue sufficiently expansionary policies to eliminate mass unemployment; so it’s a paradox of thrift world, in which anyone who tries to save more reduces demand, reduces employment, and – because investment responds to excess capacity – ends up actually reducing investment. By exporting savings to the rest of the world, via an artificial current account surplus, China is making all of us poorer.

Read more on this link http://www.economist.com/blogs/freeexchange/2010/03/chinas_currency_3?source=hptextfeature

Market Notes (March2010)

 

March 9th, marked the one-year anniversary of the elusive bottom of the most brutal bear market since the 1930’s. At the time, job losses were running in excess of 700,000 /month, and fear was rife that the US-banking system was on the verge of being nationalized. American factories and miners were using 68% of industrial capacity, the lowest level since records began in 1948. Corporate profits fell sharply for the seventh consecutive quarter, the longest losing streak since the 1930’s. The second coming of the “Great Depression” looked imminent.

In a final act of desperation to stop the carnage, the infamous “Plunge Protection Team,” (PPT) unleashed the most powerful weapons in its arsenal, resorting to accounting gimmickry, and nuclear-QE, – injecting $1.75-trillion into the coffers of the Wall Street Oligarchs, in order to turn the bearish tide. Bankers were set free of mark-to-market accounting, and instead, were allowed to value their toxic assets at “mark-to-make-believe” prices, leading to a strong recovery in the financial sector.

Over the course of the next four-weeks, the Dow Jones Industrials climbed 1,500-points to close at 8,083 on April 9th, 2009. Still, there was great skepticism about the sustainability of the so-called “green-shoots” rally, – the third such rally since the horrific crash of Sept-October 2008 that followed the default of Lehman Brothers and the bailout of American International Group (AIG).

Before hitting the ultimate bottom at 6,500, previous Dow rallies ended-up as “bear traps,” that fizzled out, before the market turned sharply lower again. There was a 1,500-point run-up during the week that culminated in the election of Barack Obama as US president, after which the Dow lost 2,000-points over the next-three weeks. The Dow Industrials staged another 1,500-point gain in December, triggered by Obama’s selection of Wall Street favorite Timothy Geithner as Treasury chief, before plunging 2,500-points during the first two-months of 2009.


However, since the Dow Industrials hit rock-bottom, US-stocks have staged a $5.3-trillion recovery, amid the biggest percentage gain since the Great Depression. Yet when viewed through the prism of Gold, measured in “hard money” terms, one can see that the performance of the Dow Jones Industrials was less than stellar. The blue-chip indicator has been locked within a narrow trading band for the past 11-months, fluctuating on both sides of 9.5-ounces of gold since April 2009.  

The “green shoots” rally is therefore, an Optical Illusion, simply reflecting the side-effects of the Fed’s hallucinogenic “quantitative easing” QE-drug. Utilizing the chart above, one could argue that the value of the Dow Industrials is artificially inflated by about 2,500-points, engineered by the Fed’s monetization scheme, and ultra-low interest rates. An ocean of liquidity is buoying the Dow Industrials above the 10,000-level, designed by the PPT to bolster household confidence, since the valuations of 401-k’s and investor portfolios can influence the propensity to spend.

Still, there are huge worries about unrelenting job losses, multi-trillion dollar budget deficits for years to come, and the “Volcker rule,” which could put the shackles on the Wall Street’s Oligarchs, and force the liquidation of widely held stocks and commodities. But for now, the market’s climb above the 10,000-level, means the possibility of a “double-dip” recession is more remote, and instead, trying to short-sell stock indexes, is like trying to push a helium balloon under water.


The S&P-500 Index has rocketed +62% higher over the past year, a gain that would normally take five-years to realize. The speed and strength of the stock market’s recovery caught many bond traders off-guard, and knocked US-Treasuries for their worst annual losses since 1978. Most notably, the yield curve, – the spread between short-term interest rates and government bond yields, rose to its widest level ever. The yield on the Treasury’s 30-year bond compared to the one-year T-bill rate hit +440-basis points in December, the widest in history.

Traders reckon that the size of the US-national debt, now exceeding $12.3-trillion, is weighing on bond prices, and a huge avalanche of debt still lies ahead. The Treasury is expected to issue $1.6-trillion in new debt in 2010, and $1.3-trillion the following year. Chinese central banker Zhu Min has warned it would become more difficult for foreigners to buy Treasuries, when the US-government has to fund its deficit by printing more dollars. China slashed its holdings of Treasury securities by $34.2-billion in December, after months of complaining about the Fed’s QE scheme.

full article link http://www.financialsense.com/fsu/editorials/dorsch/2010/0311.html

By Gary Dorsch

End of the Boom

Comment

For those of you that haven’t the time to go scouring around the internet for good articles on the Stock market, I sometimes take the time and do it for you!

Here is a great article and if you are getting into the market anytime soon,

I suggest you read this piece; it just might save you a lot of money!

Even this main article was written in 2007, just look at the bottom chart of the Dow!

We do appear to have a strengthen of the dollar but I don’t see as of yet a strong enough deterioration of the Transports or the Dow-Jones as of tonight, we still have an upward trend in place

(My personal opinion)

Machholz

 

End of the Boom – DJIA 3000

By Paul Lamont

April 19, 2007

 

 

 

“In a bull market and particularly in booms the public at first makes money which it later loses simply by overstaying the bull market…The big money in booms is always made first by the public-on paper. And it remains on paper.” – Edwin Lefèvre, Reminiscences of a Stock Operator. 1923.

To the investment community the sell-off in February came as a complete surprise. Readers of our report understand what is happening. In our article on October 17th of last year, titled Credit Extreme Emotion;

 

“As a result, financial institutions will come under severe strains as the credit bubble bursts. The rise of mortgage defaults will signal the beginning of this deflationary spiral.  Unfortunately, interest rate markets are setting up homeowners for this exact scenario.

 

Also in 7 Reasons To Sell,

 

“In addition, all 14 “Strategists” at the largest Wall Street Firms are calling for a higher market in 2007. The last time this bullish consensus occurred was at the start of 2001. The DJIA subsequently fell ~40% over the next 2 years.”

 

Promoters of the boom (Wall Street Firms) cannot be relied upon for independent investment advice. They profit by selling investments that are in demand. When demand is high for any investment, so is price and therefore these are not wise investments.

 

The Chart Wall Street Doesn’t Want You to See

 


 

The chart above from Steven Williams at CyclePro.com shows the Dow Jones Industrial Average adjusted for inflation since 1800. As you can see, when the effects of inflation have been extracted, the DJIA is much more cyclical than Wall Street promoters would care to admit. In optimistic peaks of 1834, 1906, 1929, and 1966 the DJIA subsequently moved to the bottom of the long term trend channel. These bear markets were either inflationary, such as the 1966-1982 bear market or deflationary such as in 1929-1932. We have also noticed that inflationary/deflationary crashes tend to alternate. We suppose this is because Mr. Market likes to fool even the bears. Today we are again at the top of the trend channel. How will we fall? Most bears remember and fear the stagflation of the 1970s. However with debt levels currently high, inflation cannot be maintained for an extended length of time. Debtors would merely file for bankruptcy or foreclosure (as they have begun recently). Instead a deflationary spiral similar to 1929-1933 or 1834-1842 is likely. It appears the rule of alternation will continue.

This chart also shows possible future levels for the Dow Jones Industrial Average. According to the trend lines followed since 1800, the DJIA could reasonably fall to 3000 by 2012. This is our target.

What’s Happening Now?

Astute chart watchers have recognized that markets follow elliptical curves. Currently, we are finishing up an ellipse that started in October of 2005. Notice the chart of the DJIA below, price is riding up the side of the ellipse. This is similar to price action in late 2003. (Another example of the elliptical curve is the 5yr chart of the Shanghai Index.) When price snaps out of this ellipse, the DJIA will be pursuing a new direction: down or sideways. Of course, readers know our bias is down. We believe the decline will be swifter than February’s sell off.


 

Institutions on a Bubble

Bank failures in the Great Depression were caused by savings lost in the stock market bubble. Today our banks are prevented from investing in the stock market, instead restricted to a “safer” asset class: real estate. To see the illiquid bubble that some of our financial institutions are now dependent on, see the chart below of U.S. home prices adjusted for inflation back to 1890.


 

 

Speculativebubble.com has created a rollercoaster video of this chart, which we recommend because it reflects the emotional aspect of markets. Financial institutions that are based on the real estate market will face serious problems as the boom unwinds. Mortgage lenders are already going bust. As home prices continue to fall, aided by regulatory and market restrictions on credit, baby boomers will put investment properties, in which they hold little equity, on the auction block. Alt-A mortgages which fueled these properties will fall in value. Current ‘thinking’ is that financial institutions have passed on much of the mortgage risk to hedge funds. However when hedge funds fail, ‘prime brokers’ historically have been forced to accept the hedge fund’s losing positions. Illiquid arrangements (for instance credit derivatives) will then be the responsibility of the prime brokers. They will be forced to sell at any price as they try to prevent losses on their own books. As the editor of The Commercial and Financial Chronicle in November of 1929 reported on the Great Crash, ‘the crowd didn’t sell, they got sold out.’ The trading desks of the Wall Street Firms will cash out as the panic develops, the lady in Omaha will be stuck on the phone with a busy signal.


What’s Next

As the chart above states, we expect the sharp sell-off over the next few months to develop into a crash this summer. In the meantime, we expect the U.S. dollar to continue its uptrend. Things should heat up as European countries continue to experience tougher credit conditions. As expected, wild spending from politicians usher in the next wave of crisis. Losses in weaker countries will spread into the stronger nations through the global banking system. As detailed in Global Margin Call, individual investors who in the last few months were wiring their funds to far off lands have arrived just in time to experience maximum losses.

Copyright © 2010 Paul J. Lamont

Source:
http://www.financialsense.com/fsu/editorials/lamont/2010/0201.html

 

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