If in fact The Fed is monetizing China's holdings of MBS through what amounts to an elaborate shell game, and from the public data it sure looks like they are, then we must put a stop to this immediately, punish those involved if we can find a law with an "or else" that applies, and we must add lots of teeth to the law, including criminal sanction, to prohibit this sort of thing from ever happening again. This path is exactly how Zimbabwe blew up its economy and monetary system, and for obvious reasons we must not permit that sort of game-playing to occur here.
So the conclusion is that it always has and always will be about the US consumer. And any concerns that China may stop purchasing US securities are, unfortunately, groundless - China can ill afford to push the US middle class into a greater savings mode, and thus will cooperate as much as it can with the Federal Reserve in keeping both mortgages (for the illusory net wealth effect) and interest rates as low as possible for as long as it can.
_________________ Minds are like parachutes.
They only function when open.
Last edited by Fintan on Sun Aug 30, 2009 6:25 pm; edited 3 times in total
Dell's release slipped out about three minutes before the market closed
Thursday, giving the company's shares a boost of 98 cents, or 6.7%, to
end at $15.65. The stock topped $16 ahead of Friday's opening bell.
Really? You sure about that Marketwatch?
This is about as blatant as it gets - a huge ramp, on huge volume.
"Someone" (or a bunch of someones) had that report 17 minutes before the bell, and if you were one of the "chosen few" you had a "high frequency" 14 minute window to loot the joint - again.
This sort of scam is so "in your face" that it leaves open not only the question of whether there are any cops (answer: No) but also whether one should have any confidence in our markets as a fair place for people to invest (again: No.)
In a nation honoring the rule of law this sort of trading pattern would result in an immediate investigation and a literal blizzard of subpoenas within minutes.
"When you have made evil the means of survival, do not expect men to remain good. Do not expect them to stay moral and to become fodder for the immoral. Do not expect them to produce when production is punished and looting rewarded. Do not ask who is destroying the world. You are."
A friend of ours who manages $4.0+ Billion told us that upon returning from Europe to raise funds in June that (1) fund-of-fund managers had only 50% of their money left to invest, and (2) "...there is no market." Literally, he said the market as we once knew and traded, was "gone." He said markets are now being dominated by government and Central Banks. The risk of failure for these government are extremely high. Under those premises, coupled with so-called HFT's and computer led trading (estimated at 70-80% of today's volume), it is no surprise that all we see in today's markets are quick "price adjusted spikes", with little true order or volume flow, causing the markets to sit artificially range bound for long periods of time. When one observes AIG, FNM, C, FRE, plus instruments like Oil and Sugar, literally trading tick-for-tick in lockstep with the S&P's in illogical patterns, that tells us that indeed, 80% of all volume is controlled, computer led HFT's, coupled with government mandated price levering (through firms like Goldman, Morgan, JPM and Merrill/BAC). When this strategy fails, and it eventually will, the downside will prove fatal for these issues and instruments, along with macro prices overall.
_________________ Minds are like parachutes.
They only function when open.
Study Says World's Stocks Controlled by Select Few
Companies from US, UK and Australia have
the most concentrated financial power.
Aug 25, 2009
By Lauren Schenkman
Inside Science News Service
WASHINGTON -- A recent analysis of the 2007 financial markets of 48 countries has revealed that the world's finances are in the hands of just a few mutual funds, banks, and corporations. This is the first clear picture of the global concentration of financial power, and point out the worldwide financial system's vulnerability as it stood on the brink of the current economic crisis.
A pair of physicists at the Swiss Federal Institute of Technology in Zurich did a physics-based analysis of the world economy as it looked in early 2007. Stefano Battiston and James Glattfelder extracted the information from the tangled yarn that links 24,877 stocks and 106,141 shareholding entities in 48 countries, revealing what they called the "backbone" of each country's financial market. These backbones represented the owners of 80 percent of a country's market capital, yet consisted of remarkably few shareholders.
"You start off with these huge national networks that are really big, quite dense," Glattfelder said. “From that you're able to ... unveil the important structure in this original big network. You then realize most of the network isn't at all important."
The most pared-down backbones exist in Anglo-Saxon countries, including the U.S., Australia, and the U.K. Paradoxically; these same countries are considered by economists to have the most widely-held stocks in the world, with ownership of companies tending to be spread out among many investors. But while each American company may link to many owners, Glattfelder and Battiston's analysis found that the owners varied little from stock to stock, meaning that comparatively few hands are holding the reins of the entire market.
“If you would look at this locally, it's always distributed,” Glattfelder said. “If you then look at who is at the end of these links, you find that it's the same guys, [which] is not something you'd expect from the local view.”
Matthew Jackson, an economist from Stanford University in Calif. who studies social and economic networks, said that Glattfelder and Battiston's approach could be used to answer more pointed questions about corporate control and how companies interact.
"It's clear, looking at financial contagion and recent crises, that understanding interrelations between companies and holdings is very important in the future,” he said. "Certainly people have some understanding of how large some of these financial institutions in the world are, there's some feeling of how intertwined they are, but there's a big difference between having an impression and actually having ... more explicit numbers to put behind it."
Based on their analysis, Glattfelder and Battiston identified the ten investment entities who are “big fish” in the most countries. The biggest fish was the Capital Group Companies, with major stakes in 36 of the 48 countries studied......
So let me see if I get this right. 2.126 billion shares traded in four stocks, two of which that accounted for some 900 million of those shares are in companies that by any measure of accounting have absolutely zero common equity value whatsoever (and never will under any rational view of the future), yet NYSE Euronext continues to list them.
These four stocks represented thirty seven percent of all shares traded Tuesday.....
Been reluctant to jump into this thread for personal reasons, my wife works in this industry/business. Lot's of what has been posted here has been run of the mill for decades, nothing new. What is new however is the sudden availability of information that allows common folks to see through the Fog.
Yes a select few have ALWAYS controlled the majority of the World's financial system, it ain't gonna change anytime soon.
I've posted about the staged IMPLOSION/supposed implosion of equity values before on other threads. All of it, every bit of it, has been orchestrated for the benefit of a very few select groups. Yes people were allowed to make way more money than they were worth, borrow more than they could ever repay, especially if they were laid off, of simply let go or fired. A simple plan in the grand scheme of things. The end game is to quietly sit back and wait to scavenge the bones. The time is now and here they come.
Rothschild Said to Start Fund; Chairman’s Son Joins (Update1)
By Jacqueline Simmons and Anne-Sylvaine Chassany
Sept. 2 (Bloomberg) -- Rothschild, the largest family-owned bank, plans to raise a 500 million-euro ($711 million) investment fund as chairman David de Rothschild’s son joins the firm, two people familiar with the plan said.
Alexandre de Rothschild, 29, moved to the family bank from Argan Capital, Bank of America Corp.’s former European private equity division, to work on the project, said the people, who declined to be identified before the fundraising is completed. Rothschild Managing Director Marc-Olivier Laurent, 57, will oversee the fund, the people said.
The two-century-old firm, which is run by 66-year-old David de Rothschild, plans to buy minority stakes in closely held companies after the pace of global mergers and acquisitions dropped 46 percent in the past year. The fund’s backers include Rothschild partners and clients. It will target companies valued at 100 million euros to 500 million euros, the people said.
“It’s normal for them to bring in family members to ensure succession,” said Anis Bouayad, founder of Paris-based advisory firm AB Conseils. “The bank has always found a way to promote its own, while also bringing outside talent to the top jobs.”
Javed Khan, who joined Rothschild from New York-based private equity firm Blackstone Group LP in June, and Emmanuel Roth, a former executive at investment firm Paris-Orleans, will also manage the fund, the people said. Rothschild plans to complete the fundraising before the end of the year, they said.
‘Family is Fine’
“In a business, the key is to have the best people,” David de Rothschild said in a 2005 interview, addressing the subject of succession. “The family is fine as long as they do a good job. If they don’t, it has to be someone else.”
David de Rothschild took managerial control of the U.K. side of the bank after his cousin Evelyn retired in 2004, cementing control of both the Paris and London businesses by a French Rothschild, a first for the family firm.
David’s younger brother, Edouard, stepped down in 2004 after helping to expand the French bank. Today, he oversees France Galop, the country’s horse-racing association. David’s cousin, Eric, is chairman of Rothschild’s asset-management and private-banking units and also runs the family’s Chateau Lafite vineyard.
Mayer Amschel, founder of the Rothschild banking dynasty, started out buying and selling old coins in a Frankfurt Jewish ghetto in the late 1700s and built an embryonic banking business by extending credit to clients. In the early 1800s, he sent his five sons to establish bases in London, Paris, Naples and Vienna, in addition to Frankfurt.
His great-great-grandson, Guy de Rothschild, rebuilt the French business in the 1950s and 1960s after reclaiming the bank, which had been seized by the pro-Nazi Vichy regime. In 1981, the French bank was nationalized by Socialist President Francois Mitterrand. Two years later, David persuaded the French government to grant the Rothschilds a new banking license.
[i.e. google : Gann ; lambert for MOre about Gann]
I no longer trust
My Greed-Factor ;
I trust some "WISE-Men & Ladies...
To trade on my behalf... Yo ,
Greed & Fear...
As U know are Not good in financial-Markets
P.P.S.__: current D.J.A.
Is due for Market Correction...
[I.E. per Ganns' 50 percent Correction rule]
late last yr D.J.A @ aprox-7000 low ;
Earlier Hi @ 12000 Hi ;
7000 + 12000 =19000 ;
divided by 50% which Is 2 into 19000...
Is 19000 divided by 2 =9500...
which D.J.A. is now reaching TO...
Thereforth---Market Correction Is DUE ; & the sky Is NOT Falling...
Its' ONLY a Market-Correction...
In usa-Economic-Recovery _________________ There are 3 things extremely hard :
steel , a diamond , and to know one's self.
Ben Franklin 1750
Last edited by silverthread on Thu Sep 03, 2009 3:21 pm; edited 1 time in total
raises some interesting ideas. Aside from the "buying gold coins bit" a rather upbeat summary of the "what the fuck to I do?" question.
So many of us ask and yet do not realize that we are part of the answer which we can almost hear approaching. Rushing, as a river.
We do not have the abilities to even imagine where we will be next year, next month. The time for complaining from the comfort of our living rooms is over, building over failed foundations and having one's basic structure shaken to the core is about the best we could ever ask for if that's what it's going to take. Maybe those little things that annoy you about your neighbor won't be such an issue anymore, and you'll forgive him for his previous Bush/Cheney Lawn Signs.
1) Raise your voice against this incredible financial recklessness while you still can. Nearly everyone is silent, believing the lie the U.S. government must know what it is doing. And don't be fooled by banks supposedly paying back the government money they borrowed. They pay back the so-called TARP funds and then borrow again from another window of the Fed.
2) Become a jack of all trades or a specialist in a crucial function so that you have a better chance of holding on to your job. Your money will be losing its value but at least you'll still have an inflating paycheck and perhaps some medical benefits.
3) If you can afford it, buy income producing residential real estate in a market near you. Everyone has to live somewhere and as their paychecks inflate, so will what they pay you each month to live in your property.
4) If you can afford it, take a 30 year fixed rate mortgage on that income property. You'll get a one time free ride as your borrowing costs are fixed at today's low rates and you pay back the money using ever worthless dollars.
5) Buy some gold coins. Not collector's coins but one ounce or smaller coins. Their value will fluctuate up and down but over time measured in dollars it will rise sharply. As dollars become worthless, gold coins will become a common way to buy what you need including your groceries.
6) Start or buy a business you know well, in which people will need what you offer and will pay in ever inflating dollars and in gold. Property management, food sales, medical supplies and car repairs are fine examples.
7) Be generous to those in need for we are all brethren and we are all in this struggle together.
This American financial calamity will take down economies all over the world. Most of America is working class. When it loses all it worked for, there will be an explosion of anger against the U.S.'s corrupt government. What form of government will come in is any one's guess.
This was written not to scare you but to encourage you to protect yourself and to help others in need. And please remember, if enough of us raise our voices now to stop this reckless spending on bailouts, stimulus plans and weapons and wars, this calamity can be prevented.
So what will we do when we wake up with toilet paper in our wallet?
Wipe our asses with green and head onto the BFN forums?
Pray for the Amero until we can go back to fighting the NWO again?
Switzerland’s oldest private bank has announced that it will withdraw
from the US capital market. The bank cites the planned tighening of the
QI-regime and the extension of succesion taxes as reasons.
Konrad Hummeler, the bank’s presidentaccuses the US government of
commiting grave errors and not knowing its own Achilles heel. The bank
reccomends that customers sell all US titles saying that the USA is
dramatically overestimating its attractivity as a financial market.
Read the bank president's analysis of the USA's situation
and remind yourself as you read that this is a sober banker
who is the president of the Swiss Private Bankers Association
--now exposing the social and political abyss
that is the US Government:
...Let us briefly recall the sort of tax authorities we are dealing with, and the sort of state they serve: a country that, over the last 60 years, has unques-tionably been one of the most aggressive nations in the world. The USA has fought by far the largest number of wars, sometimes with, but mostly without a UN mandate.
It has broken the international laws of war, maintained secret prisons, and fought an absurd war against drugs, with serious consequences both abroad (Columbia, Afghanistan) and at home (according to reliable sources, the tentacles of the narcotics mafia now reach well into political circles). With breathtaking moral duplicity, the USA maintains enormous offshore havens in Florida, Delaware and others of its states.
...A nation that still makes extensive use of the death penalty, and that has a legal system under which lawyers can get rich on the misfortunes of their clients. Liability cases often end in verdicts with exorbitant damages, which makes business activity extremely risky, for medium-sized enterprises in particular.
...A country that allows its infrastructure to collapse, and then stuffs convicts into hopelessly overfilled jails, after what are not infrequently dubious proceedings. They fund a nation that tolerates – or rather, causes – regular crises in the global financial system that it manages.
A country whose underclass enjoys neither the benefits of an adequate education, nor a halfway functional healthcare system; a country whose economic system is increasingly inclined to overconsumption, and in which saving and investing have increasingly become alien concepts, a situation that has undoubtedly been one of the driving forces behind the current recession, with all its catastrophic consequences for the whole world.
Furthermore, the stupendous increase in American debt is by no means a problem only for the Treasury, but affects the economy as a whole. The state’s ravenous appetite for debt is preventing private borrowers from getting access to the available finance. This is known as the “crowding-out effect”. The aim of the Fed’s quantitative easing policy is to counter this effect. At the same time, distressed banks, and whole industry sectors, like car manufacturers, are being subsidized with enormous sums, which ultimately must result in further distortions, and crass disadvantages for the unsubsidized part of the economy. This generally anti-entrepreneurial policy of discouraging investment is further reinforced by wholly disproportionate efforts to intensify the regulation of small businesses.
From the Wall Street Journal, we learn that legislation already exists in Washington that would impose reporting obligations on small venture capital enterprises – exactly those that have powered the rise of Silicon Valley – whose administrative burden would be simply unsupportable. And this just because of the concern that hedge funds, which, rightly or wrongly, are felt to require greater control, might be able to operate in the guise of such venture capital companies. If Washington gets its way, this will mean the end for many small businesses with 10 to 20 employees.
In this economic crisis, the Obama administration is making exactly the same mistake as its great hero, Franklin D. Roosevelt, made in what is quite wrongly regarded as the exemplary “New Deal”. Driven by Keynesian ideology and a belief in the possibility of an upturn caused by appropriate state intervention, in the course of the 1930s, Roosevelt deprived businesses of any hope of being able to make money again through their own efforts. Those who produced too cheaply were taken to court, big businesses were given blatantly preferential treatment, and property rights increasingly threatened. Without the exter-nal event of the Second World War, Roosevelt would have been numbered among the most unsuccessful American presidents of all time.
The financial crisis has given momentum to anti-capitalist, and thus anti-market forces in the USA (and elsewhere). That promises little good for this part of the world, but it makes it somewhat easier for investors to take their leave. Our bank is in the process of recommending our clients to exit from all direct investments in US securities. This, on the grounds of the threat of inheritance tax coupled with the uncertainty as to whether one might not, one way or another, be turned into a US person...
And as we assume that we are not the only ones who will be pursuing a policy of exit from the American capital market, we expect that the range of non-US securities with American exposure will expand significantly.
If this picture of a tautologous construct round the US Treasury is correct, then we must at the very least be extremely cautious about nominal values. For Treasury bonds and bills would then be seriously overvalued, as would the US dollar itself, which would naturally argue against all other US bonds. In our view, not even an engagement in US stocks is really worthwhile... And these calculations do not include the impact of any future increases in taxation or interest rates.
We live at a time of shifting power and influence in the world. Asia is on the rise, and Brazil too, probably. Australia will catch on to their coattails, and Europe may once more be able to position itself within these countries’ recoveries. The USA will remain the unquestioned military power and also an enormous repository of debt and other problems.
Because they are painful, and there is always an inclination to shift the blame for them onto third parties, redimensioning processes always harbour the potential for aggression. Switzerland is currently experiencing just this. But it won’t end there. Potential aggression and eco-nomic progress are mutually exclusive. Which is why we are well advised to take a general farewell of America. This will be painful, for the USA was once the most vital market economy in the world. But for now, it’s time to say goodbye.
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Oldest Swiss Bank Tells Clients to Sell U.S. Assets or Leave
By Warren Giles
Sept. 2 (Bloomberg) -- Wegelin & Co., Switzerland’s oldest bank, is telling wealthy clients to sell their U.S. assets, or switch banks, because of concerns new rules will saddle investors with tax obligations in the world’s biggest economy.
U.S. proposals to extend reporting requirements for banks whose clients buy American stocks and bonds coupled with estate tax liabilities that may be inherited by the heirs of people who have such holdings prompted the advice from the St. Gallen, Switzerland-based bank, said Managing Partner Konrad Hummler.
“We came to the conclusion that it’s a threat to our clients,” Hummler, who is also president of the Swiss Private Bankers Association, said in an interview yesterday during a conference in Zurich. “It’s also a threat to us as a bank because as a custodian we are an executor to the estate. We find this aspect discomforting, so we recommend selling all American securities whatsoever.”.....
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