By Ryan Vlastelica
NEW YORK | Mon Dec 19, 2011 4:38pm EST
(Reuters) - Banks dragged the stock market lower on Monday, with losses accelerating late after Bank of America's stock price fell below
$5 for the first time in nearly three years.
Warnings of deteriorating conditions in the euro zone and concerns about tougher capital rules that could cut into big banks' profits pressured the financials throughout the day.
19 December 2011
2012: Worse than 2008!
Martin D. Weiss Ph.D. | Monday, December 19, 2011 at 7:30 am
If you think 2008 was a bad year, wait till you see 2012!
The world’s largest banks have far less capital, the world’s largest governments have far less bailout power, and each is pulling the other into an abyss.
Yet, BOTH bankers AND government officials seem mostly oblivious to the dire realities, sleepwalking through daily life as if nothing had changed.
Burying the Truth
Over 100 years ago, novelist Émile Zola put it this way: “If you silence the truth and bury it underground, it will grow and gather such explosive power that the day it bursts through it will blow up everything in its way.”
This is a key reason why economies crumble, markets crash and entire empires wind up in the junkyard of history.
If you think 2008 was a bad year, wait till you see 2012!
The world’s largest banks have far less capital, the world’s largest governments have far less bailout power, and each is pulling the other into an abyss.
Yet, BOTH bankers AND government officials seem mostly oblivious to the dire realities, sleepwalking through daily life as if nothing had changed.
Burying the Truth
Over 100 years ago, novelist Émile Zola put it this way: “If you silence the truth and bury it underground, it will grow and gather such explosive power that the day it bursts through it will blow up everything in its way.”
This is a key reason why economies crumble, markets crash and entire empires wind up in the junkyard of history.
4 Reasons Why Silver Should be in Your Portfolio
Christian Hudspeth
Thursday, December 15, 2011 1:00 PM
It's the best electrical conductor of any metal, and may soon replace the lithium-ion in batteries used in future Apple (NYSE: AAPL) iPhones and laptops.
It's highly reflective, making it a perfect choice for the increasingly popular photovoltaic solar panels.
It's strong enough to withstand thousands of pounds of pressure and continuous abuse, making it the metal of choice for ball bearings on jet engines.
Its antibacterial properties prevent infection and speed healing. It's even used to purify one of the few limited resources that we would literally die without -- water.
This metal is already a strong investment.
Oh yeah -- and it's one of only two metals the United States considers legal tender.
As you've probably realized by now, the super metal we've been talking about is actually silver, and there's no reason it shouldn't be part of your investment portfolio.
The case for silver-lining your portfolio
1. Because silver is used in more products and services around the world than gold, its value will be prolonged and preserved for decades -- even during crises or financial collapses.
Thursday, December 15, 2011 1:00 PM
It's the best electrical conductor of any metal, and may soon replace the lithium-ion in batteries used in future Apple (NYSE: AAPL) iPhones and laptops.
It's highly reflective, making it a perfect choice for the increasingly popular photovoltaic solar panels.
It's strong enough to withstand thousands of pounds of pressure and continuous abuse, making it the metal of choice for ball bearings on jet engines.
Its antibacterial properties prevent infection and speed healing. It's even used to purify one of the few limited resources that we would literally die without -- water.
This metal is already a strong investment.
Oh yeah -- and it's one of only two metals the United States considers legal tender.
As you've probably realized by now, the super metal we've been talking about is actually silver, and there's no reason it shouldn't be part of your investment portfolio.
The case for silver-lining your portfolio
1. Because silver is used in more products and services around the world than gold, its value will be prolonged and preserved for decades -- even during crises or financial collapses.
Why Silver Could Take-Off From Current Levels
-- Paul Tracy
Friday, December 16, 2011 11:00 AM
Last week, I told you about the scramble among investors for American Silver Eagles. These coins, minted by the U.S. government, contain exactly one troy ounce of 99.9% pure silver.
Twice between 2008 and 2009 the U.S. mint had to suspend sales... and demand has almost doubled since then. All-in-all, in the past five years, demand for Silver Eagles has grown 31% annually. Roughly 40 million of these coins will be snapped up this year alone.
Meanwhile, silver has been in one of the biggest bull markets of the decade. During a roller coaster period for the broader market, silver has seen gains in eight of the past 10 calendar years.
So how high will silver go?
To be honest, trying to nail down a specific target number is tough to do. In this case, I think it's best to simply look at what could happen... and why.
That's where things get interesting. In 1980, silver spiked to about $143 per ounce in today's dollars -- roughly $110 dollars, or 393% higher, than today's price.
Friday, December 16, 2011 11:00 AM
Last week, I told you about the scramble among investors for American Silver Eagles. These coins, minted by the U.S. government, contain exactly one troy ounce of 99.9% pure silver.
Twice between 2008 and 2009 the U.S. mint had to suspend sales... and demand has almost doubled since then. All-in-all, in the past five years, demand for Silver Eagles has grown 31% annually. Roughly 40 million of these coins will be snapped up this year alone.
Meanwhile, silver has been in one of the biggest bull markets of the decade. During a roller coaster period for the broader market, silver has seen gains in eight of the past 10 calendar years.
So how high will silver go?
To be honest, trying to nail down a specific target number is tough to do. In this case, I think it's best to simply look at what could happen... and why.
That's where things get interesting. In 1980, silver spiked to about $143 per ounce in today's dollars -- roughly $110 dollars, or 393% higher, than today's price.
Debka: Whoever hacked the drone, hacked the CIA
Published: 17 December, 2011, 01:07
New reports investigating Iran’s interception of a top-secret drone craft belonging to the CIA allege that the hijacking of the stealth airship could have roots not just overseas but in Washington as well.
Ongoing reports from RT have revealed that Iranian intelligence officer claimed in recent days that the recovery of America’s RQ-170 Sentinel stealth drone on December 4 was not due to an equipment malfunction, as US authorities say happened with another craft last days later, but rather the handiwork of Iranian engineers.
As RT reported yesterday, overseas officials speaking on condition of anonymity say that they were able to crack the computers of the drone to hijack the craft and lead it to a safe landing after it caught the drone creeping over from a mission in Afghanistan. Now military sources speaking to Israel-based news outlet Debka insist that Iranian officials made their way into the drone commander centers at CIA headquarters outside of Washington in Langley, Virginia. Debka has close connections with the Israel intelligence community and in the past has been known for correctly reporting on issues of importance to the American intelligence community before US outlets.
New reports investigating Iran’s interception of a top-secret drone craft belonging to the CIA allege that the hijacking of the stealth airship could have roots not just overseas but in Washington as well.
Ongoing reports from RT have revealed that Iranian intelligence officer claimed in recent days that the recovery of America’s RQ-170 Sentinel stealth drone on December 4 was not due to an equipment malfunction, as US authorities say happened with another craft last days later, but rather the handiwork of Iranian engineers.
As RT reported yesterday, overseas officials speaking on condition of anonymity say that they were able to crack the computers of the drone to hijack the craft and lead it to a safe landing after it caught the drone creeping over from a mission in Afghanistan. Now military sources speaking to Israel-based news outlet Debka insist that Iranian officials made their way into the drone commander centers at CIA headquarters outside of Washington in Langley, Virginia. Debka has close connections with the Israel intelligence community and in the past has been known for correctly reporting on issues of importance to the American intelligence community before US outlets.
CFCT Text: Extends Effective Date For Swap Reg To July 16 2012
The Commodity Futures Trading Commission (CFTC) today issued a Final Order regarding the effective date for swap regulation. On July 14, 2011, the CFTC granted temporary exemptive relief from certain provisions of the Commodity Exchange Act that otherwise would have taken effect on July 16, 2011, the general effective date of title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act. On October 25, 2011, the CFTC proposed to extend the exemptive relief beyond the December 31, 2011, expiration date
The Silver Rush at MF Global
By ERIN E. ARVEDLUND
Investors are furious that they can't get back the gold and silver they stashed with the failed brokerage.
It's one thing for $1.2 billion to vanish into thin air through a series of complex trades, the well-publicized phenomenon at bankrupt MF Global. It's something else for a bar of silver stashed in a vault to instantly shrink in size by more than 25%.
That, in essence, is what's happening to investors whose bars of silver and gold were held through accounts with MF Global.
The trustee overseeing the liquidation of the failed brokerage has proposed dumping all remaining customer assets—gold, silver, cash, options, futures and commodities—into a single pool that would pay customers only 72% of the value of their holdings. In other words, while traders already may have paid the full price for delivery of specific bars of gold or silver—and hold "warehouse receipts" to prove it—they'll have to forfeit 28% of the value.
Investors are furious that they can't get back the gold and silver they stashed with the failed brokerage.
It's one thing for $1.2 billion to vanish into thin air through a series of complex trades, the well-publicized phenomenon at bankrupt MF Global. It's something else for a bar of silver stashed in a vault to instantly shrink in size by more than 25%.
That, in essence, is what's happening to investors whose bars of silver and gold were held through accounts with MF Global.
The trustee overseeing the liquidation of the failed brokerage has proposed dumping all remaining customer assets—gold, silver, cash, options, futures and commodities—into a single pool that would pay customers only 72% of the value of their holdings. In other words, while traders already may have paid the full price for delivery of specific bars of gold or silver—and hold "warehouse receipts" to prove it—they'll have to forfeit 28% of the value.
North Korea's coming power struggle and the Mid-East nuclear race
DEBKAfile Exclusive Analysis December 19, 2011, 3:52 PM (GMT+02:00)
The sudden death of Kim Jong II, of a heart attack aged 69, Monday, Dec. 19 – even though his youngest son Kim Jong-un was hailed as successor – confronts the world for the first time since the Cold War with a leaderless nuclear power about which it knows almost nothing. Though anointed as heir, his youngest son Kim Jong-un, believed to be 26, is more than likely to be challenged for his claim to power. At present, therefore, no one knows who controls North Korea's nuclear arsenal - any more than the identity of the country's next ruler after the dust settles.
Meanwhile there are pressing questions: Will Kim Jong II's successor follow through on his consent this week to suspend Pyongyang's enriched-uranium nuclear weapons program for 240,000 tonnes food aid from Washington? How will the 1.2 million strong standing army of the North respond to the first actions of South Korea, Japan and US forces in the Far East in placing their armies on alert?
There has been no sign of motion from this huge army apart from test-firing a short-range missile Monday morning from the east coast.
The sudden death of Kim Jong II, of a heart attack aged 69, Monday, Dec. 19 – even though his youngest son Kim Jong-un was hailed as successor – confronts the world for the first time since the Cold War with a leaderless nuclear power about which it knows almost nothing. Though anointed as heir, his youngest son Kim Jong-un, believed to be 26, is more than likely to be challenged for his claim to power. At present, therefore, no one knows who controls North Korea's nuclear arsenal - any more than the identity of the country's next ruler after the dust settles.
Meanwhile there are pressing questions: Will Kim Jong II's successor follow through on his consent this week to suspend Pyongyang's enriched-uranium nuclear weapons program for 240,000 tonnes food aid from Washington? How will the 1.2 million strong standing army of the North respond to the first actions of South Korea, Japan and US forces in the Far East in placing their armies on alert?
There has been no sign of motion from this huge army apart from test-firing a short-range missile Monday morning from the east coast.
How George Soros ended up with MF Global’s client money
By Peter Brandt
A warning to former MF Global segregated account holders: If the news has already been more than you can bear, please do not read this post — it may really push you over the edge
While the congressional hearings have been interesting, at times shocking, at other times even quite entertaining, Congress has yet to connect the dots. So I will do it for them.
In short, when the dots are connected, a significant portion of the $1.2 billion (some say more, some say less) of segregated account money illegally stolen by Jon Corzine’s MF Global (with the CFTC driving the get-away car) has landed in the pockets of George Soros.
A warning to former MF Global segregated account holders: If the news has already been more than you can bear, please do not read this post — it may really push you over the edge
While the congressional hearings have been interesting, at times shocking, at other times even quite entertaining, Congress has yet to connect the dots. So I will do it for them.
In short, when the dots are connected, a significant portion of the $1.2 billion (some say more, some say less) of segregated account money illegally stolen by Jon Corzine’s MF Global (with the CFTC driving the get-away car) has landed in the pockets of George Soros.
Michael Pento - Here’s How Central Planners will Impact Gold : "There is little doubt that the end game for Europe and the U.S. will be an implicit default on their debt through massive money printing and that will lead to gold rising in all currencies. However, in the interim; the U.S. dollar will rise and markets in general will fall until the ECB acquiesces into such action."
GEAB N°60 is available! Global systemic crisis – USA 2012/2016: An insolvent and ungovernable country
Thus, according to LEAP/E2020, the 2012 election year, which opens against the backdrop of economic and social depression, complete paralysis of the federal system (29), strong rejection of the traditional two-party system and a growing questioning of the relevance of the Constitution, inaugurates a crucial period in the history of the United States. Over the next four years, the country will be subjected to political, economic, financial and social upheaval such as it has not known since the end of the Civil War which, by an accident of history, started exactly 150 years ago in 1861. During this period, the US will be simultaneously insolvent and ungovernable, turning that which was the “flagship” of the world in recent decades into a “drunken boat”. To make the complexity of the current process understandable, our team has chosen to organize its anticipations around three key areas: US institutional deadlock and the break-up of the traditional two-party system The unstoppable spiral of recession/depression/inflation The breakdown of the US socio-political fabric
IRAN-DRONEGATE: Empires Don't Apologize: Iran in the Imperial Crosshairs: When initial reports surfaced that the drone had gone missing deep inside Iran, "CIA press officials declined to comment on the downed drone and reporters were directed toward a statement from the military," The Washington Post reported. Indeed, the International Security Assistance Force (ISAF), the NATO-led alliance currently occupying Afghanistan, dismissed Iran's claims that the drone was operating over their territory. "The UAV to which the Iranians are referring may be a U.S. unarmed reconnaissance aircraft that had been flying a mission over western Afghanistan late last week," the ISAF statement read. Deep inside the media echo chamber, CNN informed us earlier this month that the drone had been "tasked to fly over western Afghanistan and look for insurgent activity, with no directive to either fly into Iran or spy on Iran from Afghan airspace." "A U.S. satellite quickly pinpointed the downed drone, which apparently sustained significant damage," the "senior official" told the network. CNN quoted the unnamed "senior official" as saying, "the Iranians have a pile of rubble and are trying to figure what they have and what to do with it." According to this reading, "the drone crashed solely because its guidance system failed, the official said." While first claiming that the CIA drone had strayed off-course, CNN reported after the Sentinel was publicly displayed, that unnamed "U.S. military officials" re-calibrated their tale and now said that the drone "was on a surveillance mission of suspected nuclear sites" in Iran. Anonymous officials told CNN that "the CIA had not informed the Defense Department of the drone's mission when reports first emerged that it had crashed," and that the U.S. military "'did not have a good understanding of what was going on because it was a CIA mission'." As with their earlier reporting, CNN's latest explanation was a fabrication.
by Tom Burghardt
After first denying that the Iranian military had captured the CIA's RQ-170 Sentinel spy drone, and then reluctantly acknowledging the fact only after PressTV aired footage of the killer bot, the Associated Press reported that "the Obama administration said Monday it has delivered a formal request to Iran" that they return it.
"We have asked for it back," Obama said. "We'll see how the Iranians respond."
A huge embarrassment to the CIA and the Pentagon, U.S. Secretary of State Hillary Clinton told reporters during a State Department briefing: "We submitted a formal request for the return of our lost equipment as we would in any situation to any government around the world."
Cheekily, Clinton said although the U.S. government has little prospect of getting their $6 million toy back because of "recent Iranian behavior," she then threatened the Islamic Republic saying, "the path that Iran seems to be going down is a dangerous one for themselves and the region."
In Washington's bizarro world where war is peace the United States, which has Iran surrounded with a string of military bases and where nuclear-armed aircraft carrier battle groups and submarines ply the waters of the Mediterranean and the Persian Gulf, the aggressor is magically transformed into the aggrieved party.
The Secretary said, "given Iran's behavior to date we do not expect them to comply but we are dealing with all of these provocations and concerning actions taken by Iran in close concert with our closest allies and partners." (emphasis added)
After first denying that the Iranian military had captured the CIA's RQ-170 Sentinel spy drone, and then reluctantly acknowledging the fact only after PressTV aired footage of the killer bot, the Associated Press reported that "the Obama administration said Monday it has delivered a formal request to Iran" that they return it.
"We have asked for it back," Obama said. "We'll see how the Iranians respond."
A huge embarrassment to the CIA and the Pentagon, U.S. Secretary of State Hillary Clinton told reporters during a State Department briefing: "We submitted a formal request for the return of our lost equipment as we would in any situation to any government around the world."
Cheekily, Clinton said although the U.S. government has little prospect of getting their $6 million toy back because of "recent Iranian behavior," she then threatened the Islamic Republic saying, "the path that Iran seems to be going down is a dangerous one for themselves and the region."
In Washington's bizarro world where war is peace the United States, which has Iran surrounded with a string of military bases and where nuclear-armed aircraft carrier battle groups and submarines ply the waters of the Mediterranean and the Persian Gulf, the aggressor is magically transformed into the aggrieved party.
The Secretary said, "given Iran's behavior to date we do not expect them to comply but we are dealing with all of these provocations and concerning actions taken by Iran in close concert with our closest allies and partners." (emphasis added)
British Media Propaganda Aims at Triggering NATO Military Intervention against Syria
by Tony Cartalucci
Channel 4 makes Goebbels proud with conveniently timed propaganda piece.
With the UN's recent "human rights" report falling flat, for lack of evidence and being compiled by Karen Koning AbuZayd, a director of the US Washington-based corporate think-tank, Middle East Policy Council, that includes Exxon men, CIA agents, US military and government representatives, and even the president of the US-Qatar Business Council, the corporate-media has stepped in to give faces and screams to the alleged victims of Wall Street and London's premeditated implosion of Syrian society.
The UN's human rights chief, Navi Pillay had been having difficulties peddling the recycled lies used just months ago to commence NATO and UN-sanctioned genocide in Libya, in what is now verified, even confessed fabrications produced by the Libyan opposition and filtered through corporate foundation-funded Human Rights Watch, the International Criminal Court, and the UN. Additionally, Syria itself had brushed off attempts by the Wall Street and London compromised Arab League and their numerous, feckless attempts to impose ultimatums clearly crafted in Washington and given an "Arab" face.
Channel 4 makes Goebbels proud with conveniently timed propaganda piece.
With the UN's recent "human rights" report falling flat, for lack of evidence and being compiled by Karen Koning AbuZayd, a director of the US Washington-based corporate think-tank, Middle East Policy Council, that includes Exxon men, CIA agents, US military and government representatives, and even the president of the US-Qatar Business Council, the corporate-media has stepped in to give faces and screams to the alleged victims of Wall Street and London's premeditated implosion of Syrian society.
The UN's human rights chief, Navi Pillay had been having difficulties peddling the recycled lies used just months ago to commence NATO and UN-sanctioned genocide in Libya, in what is now verified, even confessed fabrications produced by the Libyan opposition and filtered through corporate foundation-funded Human Rights Watch, the International Criminal Court, and the UN. Additionally, Syria itself had brushed off attempts by the Wall Street and London compromised Arab League and their numerous, feckless attempts to impose ultimatums clearly crafted in Washington and given an "Arab" face.
EU Crisis - A Bottomless Hole.
According to Klaus Regling, the chief of the European Financial Stability Facility, the sovereing debt crisis has already consumed a staggering amount of money. To date, more than 1 trillion Euros had already been spent on trying to solve the problem and the figure is to become much higher. Greece alone will need additional 100 billion Euros to carry this country through 2012, and 50 billion euros may be requested to help recapitalise banks in the EU. However, even this is only a fraction of the potential demand from Italy and Spain in they are unable to refinance their maturing obligations. Considering the high costs of borrowing they have experienced recently, this is a real possibility.
Debt-Free United States Notes Were Once Issued Under JFK And The U.S. Government Still Has The Power To Issue Debt-Free Money
Our current debt-based monetary system was devised by greedy bankers that wanted to make huge profits by creating money out of thin air and lending it to the U.S. government at interest. Sadly, the vast majority of the American people have no idea how money is actually created in this nation. When each new Federal Reserve Note is created, the interest owed by the federal government on that new Federal Reserve Note is not also created at the same time. So the amount of government debt that is created actually exceeds the amount of money that is created. Isn't that a stupid system? The U.S. Constitution says that the federal government is the one that should actually be issuing our money. In particular, according to Article I, Section 8 of the U.S. Constitution, it is the U.S. Congress that has been given the responsibility to "coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures". So why is a private central banking cartel issuing our money?
Harvey Organ's - The Daily Gold and Silver Report - Saturday, December 17, 2011
Huge gold deliveries/More sovereign downgrades/ Saturday, December 17, 2011
Good morning Ladies and Gentlemen:
After a 3 week hiatus, the FDIC decided to best to place two banks into the morgue:
Bank Name | City | State | CERT # | |||
|---|---|---|---|---|---|---|
| Western National Bank | Phoenix | AZ | 57917 | |||
| Premier Community Bank of the Emerald Coast | Crestview | FL | 58343 |
end.
Friday saw the stock market initially rally into triple digit gains by the Dow but as the day wore on, selling commenced and finally the Dow ended in negative territory. Gold started strong but fell during the early comex hours but gained strength as the day wore on, finishing the session at $1595.60 up $21.20. Silver also had a good day finishing the comex session at $29.62
In the access market here are the final closing prices for these two metals;
Gold; $1599.20
Silver: $29.74
Let us head over to the comex and see how trading fared with respect to open interests, delivery notices and finally inventory movements.
The total gold comex open interest fell by 5144 contracts to 430,854. We had very minor spec liquidation. The fun begins with the front delivery month of December. Here the OI fell from 2327 contracts to 981 contracts for a loss of 1346 contracts. We had a huge 1823 delivery notices on Thursday so we gained more gold ounces standing for delivery and lost nothing to cash settlements. The next big delivery month is February and here the OI fell from 261,629 contracts to 257,634 as it was here that had the major contraction in open interest. The estimated volume on Friday was very tame at 139,217. The confirmed volume on Thursday was much higher at 199,508 due to the raid and mega high frequency trading.
The total silver comex OI rose by 884 contracts despite the raid on Thursday. As I pointed out to you on numerous occasions it is becoming more difficult for the bankers to get the silver leaves to fall from the silver tree. They just are not biting. The next delivery month is March and here the OI rose from 57,037 to 58,059
as our longs remain resolute in their conviction and refuse to play along with the bankers. The estimated volume was extremely low at 30,084 as the bankers refused to supply the needed paper having been exhausted during the week with heavy activity and nothing to show for their "hard" work. The confirmed volume on Thursday was a little better on Thursday at 47,798.
Draghi Tells Financial Times Bond Buying Unlikely as ECB Abides by Mandate
European Central Bank President Mario Draghi damped expectations that the bank will step up bond purchases to tame the sovereign debt crisis, saying it can’t overstep its mandate.
“People have to accept that we have to, and always will, act in accordance with our mandate and within our legal foundations,” Draghi told the Financial Times in an interview, confirmed by the Frankfurt-based ECB. “The important thing is to restore the trust of the people -- citizens as well as investors -- in our continent. We won’t achieve that by destroying the credibility of the ECB.”
“People have to accept that we have to, and always will, act in accordance with our mandate and within our legal foundations,” Draghi told the Financial Times in an interview, confirmed by the Frankfurt-based ECB. “The important thing is to restore the trust of the people -- citizens as well as investors -- in our continent. We won’t achieve that by destroying the credibility of the ECB.”
European Ministers Seek $261B IMF Crisis Funds: Euro-area finance ministers will hold a conference call at 3:30 p.m. Brussels time to discuss 200 billion euros ($261 billion) in additional funding through the International Monetary Fund and the mechanics of a so-called fiscal compact that was negotiated at a Dec. 9 European Union summit
European finance ministers sought to meet a self-imposed deadline for drawing additional aid to the debt crisis and to form new budget rules as investor confidence that a comprehensive solution is achievable wanes.
Euro-area finance ministers held a conference call beginning at 3:30 p.m. Brussels time to discuss 200 billion euros ($261 billion) in additional funding through the International Monetary Fund and the mechanics of a so-called fiscal compact that was negotiated at a Dec. 9 European Union summit, according to two people familiar with the planning.
Euro-area finance ministers held a conference call beginning at 3:30 p.m. Brussels time to discuss 200 billion euros ($261 billion) in additional funding through the International Monetary Fund and the mechanics of a so-called fiscal compact that was negotiated at a Dec. 9 European Union summit, according to two people familiar with the planning.
Jon Corzine, MF Global, and Unaccountability By Nomi Prins: "To recap. Corzine was obsessed with the European sovereign bet. So, he fired his risk officer, Michael Roseman for questioning it, and replaced him with a yes-man, Michael Stockman whose job description appeared to have included stroking Corzine's – er – ego, and to remain quiet about any trade concerns. He rides the trade through a succession of flailing earnings and intense market volatility, while meeting with regulators questioning its sustainability. He knows he’s got to pony up a chunk of capital in the summer to appease them and stick with it. And when finally, MF Global’s ratings were downgraded on October 25th, a bunch of calls transpire between him and NY Fed head and former Goldmanite, William Dudley before the firm goes bankrupt a week later, with nearly $1.2 billion in customer money ‘missing.'"
Sunday, December 18, 2011 at 11:08PM
In April 2007, former New Jersey governor, 'honorable', Jon Corzine had an altercation with a Garden State Parkway guardrail. A year later, he addressed a bevy of reporters at the swanky Drumthwacket mansion and expressed appreciation for “family, friends, and the fragility of life.” During his recovery period, he advocated seatbelt safety, before returning to New Jersey's budget, extracting $500 million in austerity measures from farmers, educators, and environmentalists, and hiking tolls on New Jersey roadways.
On the one-year anniversary of his accident, his chief-of-staff, Bradley I. Abelow declared, “Corzine has returned to his former self as a thorough and exacting boss.” (Italics mine.)
Fast forward to the current MF Global flameout. Abelow shifted to Corzine’s Chief Operating Officer. And not only did Corzine ratchet up the ante on ways to really piss off farmers, but after several days of engaging in verbal dodge ball with Congress, this ‘thorough and exacting boss’ maintained his Forest Gump type cloak of secrecy regarding the stolen $1.2 billion of his customers’ segregated money.
In April 2007, former New Jersey governor, 'honorable', Jon Corzine had an altercation with a Garden State Parkway guardrail. A year later, he addressed a bevy of reporters at the swanky Drumthwacket mansion and expressed appreciation for “family, friends, and the fragility of life.” During his recovery period, he advocated seatbelt safety, before returning to New Jersey's budget, extracting $500 million in austerity measures from farmers, educators, and environmentalists, and hiking tolls on New Jersey roadways.
On the one-year anniversary of his accident, his chief-of-staff, Bradley I. Abelow declared, “Corzine has returned to his former self as a thorough and exacting boss.” (Italics mine.)
Fast forward to the current MF Global flameout. Abelow shifted to Corzine’s Chief Operating Officer. And not only did Corzine ratchet up the ante on ways to really piss off farmers, but after several days of engaging in verbal dodge ball with Congress, this ‘thorough and exacting boss’ maintained his Forest Gump type cloak of secrecy regarding the stolen $1.2 billion of his customers’ segregated money.
Britain Set to Roll Out Sweeping Banking Reform
By Erik Pineda: Subscribe to Erik's RSS feed
December 19, 2011 12:30 AM EST
Britain's banking system is set to undergo major overhauls that the government aims to implement by 2019, reports said.
The key component of the reform is the planned separation of British banks' retail and investment divisions, as recommended in the September assessment report issued by the Independent Commission on Banking, headed by former Bank of England chief economist John Vickers.
Britain's banking system is set to undergo major overhauls that the government aims to implement by 2019, reports said.
According to Agence France Presse, the British government is intending to roll out all the reforms that the Vickers Commission urged to avert a recurrence of the financial crisis of 2008, when the Bank of England was compelled to rescue major financial institutions to avert the meltdown of Britain's banking industry.
International Monetary Fund Managing Director Christine Lagarde has predicted another financial crisis if the eurozone debt situation deteriorates further.
The new banking reform measures, the AFP said, will be formally announced on Monday by Business Minister Vince Cable.
December 19, 2011 12:30 AM EST
Britain's banking system is set to undergo major overhauls that the government aims to implement by 2019, reports said.
The key component of the reform is the planned separation of British banks' retail and investment divisions, as recommended in the September assessment report issued by the Independent Commission on Banking, headed by former Bank of England chief economist John Vickers.
Britain's banking system is set to undergo major overhauls that the government aims to implement by 2019, reports said.
According to Agence France Presse, the British government is intending to roll out all the reforms that the Vickers Commission urged to avert a recurrence of the financial crisis of 2008, when the Bank of England was compelled to rescue major financial institutions to avert the meltdown of Britain's banking industry.
International Monetary Fund Managing Director Christine Lagarde has predicted another financial crisis if the eurozone debt situation deteriorates further.
The new banking reform measures, the AFP said, will be formally announced on Monday by Business Minister Vince Cable.
Sorry Folks, QE 3 Ain’t Coming…
… Unless we get a major bank going under or a 2008-type event.
I’ve been reading that several pundits believe QE 3 is just around the corner. I’m sorry to say that this view is both misguided and has proven to be extremely dangerous to investors’ portfolios over the six months.
Indeed, we’ve heard this argument virtually non-stop since last June. Every time the Fed had another FOMC coming up, the argument was made that QE 3 would be announced. Every single time the Fed disappointed and the markets cratered (only to then be ramped higher by the PPT).
The madness would then start all over again a few weeks later. Whether it was some Dovish Fed President hinting the Fed was ready to act… or some economic data point missing expectations… EVERY TIME the pundits spun this to argue that QE 3 was just around the corner.
However, for those who actually read what Bernanke was saying, it was clear as day that QE 3 was NOT coming… at least not without some kind of Crisis hitting first: such as a major bank collapsing or another 2008 episode.
I’ve been reading that several pundits believe QE 3 is just around the corner. I’m sorry to say that this view is both misguided and has proven to be extremely dangerous to investors’ portfolios over the six months.
Indeed, we’ve heard this argument virtually non-stop since last June. Every time the Fed had another FOMC coming up, the argument was made that QE 3 would be announced. Every single time the Fed disappointed and the markets cratered (only to then be ramped higher by the PPT).
The madness would then start all over again a few weeks later. Whether it was some Dovish Fed President hinting the Fed was ready to act… or some economic data point missing expectations… EVERY TIME the pundits spun this to argue that QE 3 was just around the corner.
However, for those who actually read what Bernanke was saying, it was clear as day that QE 3 was NOT coming… at least not without some kind of Crisis hitting first: such as a major bank collapsing or another 2008 episode.
Eurozone to Push on with Crisis Steps, Fitch Doubts Outcome
By Jan Strupczewski
December 18, 2011 2:40 PM EST
(Reuters) - The Eurozone will pursue measures to tackle its sovereign debt crisis this week by offering more cash to the IMF and long-term liquidity to banks, while moving towards tighter fiscal rules, after ratings agency Fitch cast doubt on its ability to forge a decisive response.
"We all know that Europe has not been able to convince markets that its governance set-up and its measures against the crisis were enough," Italy's Deputy Economy Minister Vittorio Grilli said in a newspaper interview published on Sunday.
"More integration and more effective instruments are needed. We are not yet there," he told Il Sole 24 Ore.
Eurozone leaders agreed on Dec. 9 to write into national constitutions a rule that budgets have to be balanced or in surplus in structural terms. If they are not, automatic corrective measures would follow.
Such rules would sharply limit government borrowing, bring down debt and, Eurozone politicians hope, help restore market trust in the sustainability of public finances.
December 18, 2011 2:40 PM EST
(Reuters) - The Eurozone will pursue measures to tackle its sovereign debt crisis this week by offering more cash to the IMF and long-term liquidity to banks, while moving towards tighter fiscal rules, after ratings agency Fitch cast doubt on its ability to forge a decisive response.
"We all know that Europe has not been able to convince markets that its governance set-up and its measures against the crisis were enough," Italy's Deputy Economy Minister Vittorio Grilli said in a newspaper interview published on Sunday.
"More integration and more effective instruments are needed. We are not yet there," he told Il Sole 24 Ore.
Eurozone leaders agreed on Dec. 9 to write into national constitutions a rule that budgets have to be balanced or in surplus in structural terms. If they are not, automatic corrective measures would follow.
Such rules would sharply limit government borrowing, bring down debt and, Eurozone politicians hope, help restore market trust in the sustainability of public finances.
The Status Of QE3
By: Tony Pallotta | Sun, Dec 18, 2011
Aside from countless banks calling for QE3 which one has to wonder if their analysis may be slightly biased for personal gain the question remains will we see QE3.
The November 2010 FOMC statement which launched QE2 made it clear why the Fed was expanding their balance sheet by $600 billion.
"To promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to expand its holdings of securities."
Assuming their basis for future QE has not changed then looking at the data may give us a sense of if and when QE3 will happen.
Aside from countless banks calling for QE3 which one has to wonder if their analysis may be slightly biased for personal gain the question remains will we see QE3.
The November 2010 FOMC statement which launched QE2 made it clear why the Fed was expanding their balance sheet by $600 billion.
"To promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to expand its holdings of securities."
Assuming their basis for future QE has not changed then looking at the data may give us a sense of if and when QE3 will happen.
The single biggest gold buying opportunity of the decade is here. Will you buy? Gold is in the process of putting in an intermediate degree bottom. That bottom, which is only days away if it didn't already happen today, is going to be the single greatest buying opportunity, probably of the decade.
By Toby Connor
I know that during a correction of the magnitude we are seeing right now it seems more like the Gold bull is dead than on the verge of moving into what I expect will be one of the greatest parabolic moves in history.
However, all of the conditions necessary to launch the bubble phase are now in place. Gold is in the process of putting in an intermediate degree bottom. That bottom, which is only days away if it didn't already happen today, is going to be the single greatest buying opportunity, probably of the decade.
Gold sentiment is at multiyear lows. Retail traders that bought at $1900 have gotten wiped out. The media is full of stories calling for the death of the gold bull. Institutional traders from John Paulson, George Soros, and Dennis Gartman have all gotten knocked off the bull.
Breadth in the universally hated mining sector is back down to levels that have only been exceeded during the crash in 2008.
I know that during a correction of the magnitude we are seeing right now it seems more like the Gold bull is dead than on the verge of moving into what I expect will be one of the greatest parabolic moves in history.
However, all of the conditions necessary to launch the bubble phase are now in place. Gold is in the process of putting in an intermediate degree bottom. That bottom, which is only days away if it didn't already happen today, is going to be the single greatest buying opportunity, probably of the decade.
Gold sentiment is at multiyear lows. Retail traders that bought at $1900 have gotten wiped out. The media is full of stories calling for the death of the gold bull. Institutional traders from John Paulson, George Soros, and Dennis Gartman have all gotten knocked off the bull.
Breadth in the universally hated mining sector is back down to levels that have only been exceeded during the crash in 2008.
Asian gold buyers thrilled at price fall, UBS says buy Gold
Gold Core
Gold prices dropped more than 7% last week – the biggest weekly loss since September. Liquidity squeezed speculators and banks have been closing long positions and selling Gold this past week but global physical demand remains robust.
Bullion buying in much of Asia has picked up. Reuters reports that there has been a jump in buying in most Asian countries and that demand for gold in India, still the world's top buyer, rose slightly for the first time in almost a week on Friday.
Bullion dealers in India told Reuters that the price drop “enthused buyers.”
"We saw huge physical demand from Thailand and Indonesia," a Singapore based dealer told Reuters. Gold bar premiums were steady at $1.00 an ounce over spot prices in Singapore. Prices may edge up this week as supply reduces around Christmas holidays according to a dealer.
Gold prices dropped more than 7% last week – the biggest weekly loss since September. Liquidity squeezed speculators and banks have been closing long positions and selling Gold this past week but global physical demand remains robust.
Bullion buying in much of Asia has picked up. Reuters reports that there has been a jump in buying in most Asian countries and that demand for gold in India, still the world's top buyer, rose slightly for the first time in almost a week on Friday.
Bullion dealers in India told Reuters that the price drop “enthused buyers.”
"We saw huge physical demand from Thailand and Indonesia," a Singapore based dealer told Reuters. Gold bar premiums were steady at $1.00 an ounce over spot prices in Singapore. Prices may edge up this week as supply reduces around Christmas holidays according to a dealer.
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