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Soapy, I'm a newbee, tell me what's happening on L2? Is it good? Frankly, I wish they'd shut up with their PRs, they always make the stock drop. All I see is a tremendous stranglehold on this that's gone on for a long long time.
GOOD NEWS FOR AMBAC - WILD RIDE COMING!
http://www.washingtonpost.com/wp-dyn/content/article/2008/10/24/AR2008102401715.html
Another good infrastructure play: DSUP, wayyyyyyy undervalued!!
Madras, check out SPNG and ABK. IMO both are good plays. Right now ABK is great for day trading, but I believe it's a good long play as well. Same for SPNG. Check them out.
FROM THE YAHOO BOARD:
Reuters publishes a story entitled "Muni mkt may reject bond insurers despite U.S. aid" http://www.reuters.com/article/marketsNe...
In this article, they quote an Evan Rourke of MD Sass:
<begin>
"Investors have been burned. I think the whole psychology has shifted on that," said Evan Rourke, a muni strategist with M.D. Sass in New York.
"The whole concept of the product has been tainted," he said.
Rourke said he now always looks through any insurance to an issuer's underlying credit.
<end>
Here is what Reuters failed to disclose: MD Sass is partnered with the Macquarie Group, which recently set up a Bond Insurer (i.e. a new competitor).
Here is the link about the new Bond Insurance consortium. http://www.reuters.com/article/rbssFinan...
This is what the author is talking about, the joint (partnership) fund between the two.
http://www.macquarie.com/us/about_macqua...
"MD Sass and Macquarie Group form new joint venture
I'm not much good with charts, but do I see a cup and handle??
Great volume, great PRs, great revenue, great product, great growth, and totally manipulated and strangled share price!
Next is credit cards, commercial paper, GMAC, FMC ad nauseam!!
Great post again GeeMoney! Your analysis begs the question: Why don't we colletively as shareholders gang up on the shorts, if indeed that is what's happening, and send a flood of emails to our congressman, the SEC, the FBI, etc?? If indeed this is what's happening why should we sit back and do nothing while they ruin this company? Why isn't the company doing something?
GeeMoney, great post. You have aptly described part of what is going on here. Very well explained.
I totally agree. IMO I don't believe you can blame the stranglehold and manipulation of this stock totally on the shorts. I'm very confident there are major stockholders that are influencing this in a very dramatic way. I've never seen a more controlled environment!!!!
YYY, there's no rhyme or reason why this goes in any direction other than the ones who manipulate totally decide what it will open at, the range it gyrates between during the day, and of course they also manipulate the close. It appears today they want it to close at or below 0.03.
GREAT READ FOR ABK:
Here is what Warren Buffet has to say. Look at market fluctuations as your friend rather than your enemy. Profit from folly, rather than participating in it. Most people get interested in stocks when everyone else is interested. The time to get interested is when no one else is. You can't buy what is popular and do well.
(He might also say, beware of grown-ups who behave in the market like children and be aware of your reaction to their communications, especially on message boards like this one where wily operators have an opportunity to influence share price directly by appeals to your fear or greed motives. However this is just speculation.)
Buffett would also say you ought to be able to explain why you’re making the investment you’re making. If you can’t express an intelligent answer to the why question, don’t do it. Do a lot of reading. Don’t make bad decisions. When you do move, move big and for the long term.
One Man’s Why
My research leads me to believe PPS will soon be higher under any scenario. A run-off (40% chance) would end up seeing ABK at a PPS in the $12 range. If they survive without help (10% chance), valuation is more likely in the $7 range. If there is a bailout (50% chance) valuation is closer to $30.
Reasoning:
It appears some sort of cash infusion is an even-money prop or better given the following facts. There are billions in municipal projects that are stalled without bond insurance and those projects are recognized as essential in the attempt to right the US economic ship. The NY Insurance Commissioner has announced that CDS will be required to be regulated as an insurance product and can only be guaranteed by monoline insurers like ABK. ABK had a meeting today with insurance regulators and Treasury reps that was characterized as “productive.” There are a number of other reasons that this path is likely to come to fruition. Current info is that a government stake is unlikely, only an asset sale through the TARP, but even with dilution shareholders will see PPS more than double immediately with confidence restored.
If no bailout is reached with the government, more downgrades may be coming, which makes it likely that bond insurers like ABK will go into "run-off," which occurs when an insurer stops taking on new risks and slowly shuts down while paying any claims from existing policies. The ding ABK took for underwriting some pieces of some higher-quality parts of some mortgage pools was about their non-cash, mark-to-market-only write down of equity.(Although it now appears Moody’s extorted ABK to blind insure some subprime debt, and it is clear that ABK raised enough capital to maintain its AAA insurance rating, the rating agencies violated their own parameters and lowered ABK's rating to AA+/AA3.) The write-downs were book entries only. More than $16B (ten times the cash currently stated under skewed post-Enron accounting standards) is still in the company and as the mortgage market improves, it is highly likely ABK will experience write-ups on these book entries. A change in mark-to-market rules, which is being discussed, would return this cash to the balance sheet immediately. This leads me to believe that tangible book ($4-$6 conservatively) is not an accurate measure in a run-off scenario, but a higher value in the $12 range. (ABK management believes the run-off valuation is more like $30/share.)
Even as a going concern ABK is worth about triple its current PPS. ABK has good cash flow. They earn approximately $450M on interest from their portfolio and spend about $200,000 on operations. Even if they never wrote another insurance policy ABK should be profitable for years to come. A new player in the bond insurance space would be well served by a purchase of ABK to vault into a meaningful position in the market.
Read the posts from yesterday, you will see why.
Doesn't appear "they" want it close at or above .031.
Hey Doog, good to see you. Always appreciate your DD, you're a great guy!! Sure wish the company would fart or burp, anything would be welcome.
Wisc Regulator: Bond Insurer Rescue Talks 'Productive'Last update: 10/22/2008 1:10:34 PM
By Lavonne Kuykendall
Of DOW JONES NEWSWIRES
CHICAGO (Dow Jones)--Top bond insurers and their state regulators had a "productive" meeting in New York City Tuesday to discuss ways they might participate in the U.S. Treasury Department's rescue plan, said a spokesman for one of the regulators Wednesday.Talks will continue, said Jim Guidry, an aide in the Wisconsin Department of Insurance. The second-largest bond insurer, Ambac Financial Group's (ABK) bond insurance unit is headquartered in Wisconsin, and is regulated by Wisconsin Insurance Commissioner Sean Dilweg, who said last week that major insurers would meet to discuss options for making a proposal to Treasury to participate in its rescue plans for financial services companies.Guidry said the group, which includes at least some of the major bond insurers, Dilweg and New York Insurance Superintendent Eric Dinallo, would continue to "evaluate all the options with participants."The largest bond insurer, MBIA Inc. (MBI) is headquartered in New York.Some possibilities include having bond insurers sell some of their troubled assets to the Treasury, or request an equity or other investment.In an interview on CNBC last week, Dinallo suggested that bond insurers could be substantially strengthened for $10 billion to $20 billion.-By Lavonne Kuykendall, Dow Jones Newswires; 312-750-4141; lavonne.kuykendall@dowjones.comClick here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=fVwNxmV... You can use this link on the day this article is published and the following day.(END) Dow Jones NewswiresOctober 22, 2008 13:10 ET (17:10 GMT)Copyright © 2008 MarketWatch, Inc. All rights reserved. Please see our Terms of Use.
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check out CSPAN, Moody's is getting hammered today!!
Yeah, the government always makes me nervous when they get involved in something. Here's a couple more links for you to help you with charts: www.stockcharts.com and www.chartpatterns.com
In this market I recommend a combination of TA and FA with a little more emphasis on FA. Listen to and read sector related news, public sentiment, SEC filings, etc. Another good site is www.investopedia.com for stock terminology and www.ddmachine.com
Hope this helps and GLTU
A GREAT POST FROM THE YAHOO BOARD...
ABK may present a formidable balance sheet, but there are a variety of challenges to entering or leading the guaranty market. New entrants have been involved with very few deals thus far and most are muddling through the initial stages of operations. Only way to enter this market and the preferred approach of entering a market is through the acquisition of strong, existing players, not starting de novo.
Further, new competitors with a lack of guaranty operating platform makes it difficult to to view it as ready to take over the market or even aggressively compete. For example it needs domain expertise, databases on historical performance of municipalities, a bond guaranty financial strength rating, credit analysts, relationships with issuers and investors and lawyers and accountants specialized in bond guaranty. Even if Berkshire and other competitors decide to enter in a more pronounced fashion, it does not preclude others from operating. Finally, new entrants have intentions to charge more than the incumbents in a market that exists to save funding costs does not suggest a hearty appetite.
Ambac should prevail once the goverment brokered deal is put in place and its balance sheet strengthens to allow for a higher regulatory rating. ABK will continue to thrive as a relatively lower cost and experienced provider, however Ambac also represents a potential springboard into the category as a leading player for a competitor with deep pockets looking to enter or consolidate the industry.
Welcome aboard Walkdog. Everyone here will help as much as they can. You can go to www.stockwire.com and they have a tutorial on charts you can watch, it helped me. I'm a noob too. It's also good to read all the SEC filings on a company and stay abreast of all the news. Another good site is www.mffais.com which will tell you what the fund families are doing with any given stock. GLTU
CHECK THIS OUT: http://www.mffais.com/
Great addition for DD. Check out ABK here.
Mack, make no mistake about it, "they" will direct this wherever "they" want it to go!
WPO, Your last paragraph is exactly what is happening in conjunction with the shorts IMO.
Yes, that's exactly what is happening!!!! Couple that with the shorts and this is what we get, stagflation!
Msmick, yeah. When I reach my entry point price I'm outta here. This has a lot of potential, but with the manipulation this is saddled with I question whether anyone 50 years old or more can live long enough to bear fruit here. The SEC is a joke! No wonder small businesses that go public fail so often!!!
Yeah, I'm very heavy in this as well, but as I predicted about a month ago that each leg up in this will result in the same manipulation I've seen here for months now. To reach a dollar at this rate, well, I don't know if any of us will live that long! I've never seen a more manipulated and controlled stock as this! No matter what is released for news, no matter what the volume, now matter what is filed with SEC, this remains in total manipulation.
I see that no matter what the news the manipulation is still strangling this stock. I predicted correctly that every time there is a leg up then we will see the same thing that's been happening for a long time now. At this rate I hope we can all live long enough to realize a gain. Sure wish I hadn't bought in at the price I did!
Harley, really? It's a bunch of BS?? I hope you're right. I'm hearing a lot about "globalization" on the news lately.
FROM THE WAMUQ BOARD - MUST READ
JPMorgan Responsible for the Destruction of U.S. Financial System
Stock-Markets / Financial Crash
Oct 16, 2008 - 05:19 PM
By: Jim_Willie_CB
The tag team of JPMorgan as the monster and Goldman Sachs as its harlot represent a powerful pair that is more responsible for destroying the entire US financial system than 95% of the American public has any awareness. The colossus of JPMorgan is a monster, a predator, nurtured by pond scum. It has gobbled up Chase Manhattan, Manufacturers Hanover, Chemical Bank, Bank One, and more over the past two decades. Their profound presence in keeping the USTreasury Bond yields down can never be understated. They do so by managing 85% of the credit derivatives on the planet. They distorted usury prices, as in price of borrowed money, thus aggravating the LIBOR (London InterBank Offered Rate) market in a very visible manner.
The oblong usury prices have contributed mightily to the destruction of the US Economy itself, created bubbles, killed jobs, and wrecked savings. The ugliest hidden activity for the JPMorgan monster is to manage the Bank of Baghdad, where they manipulate the crude oil price, where drug trafficking money is funneled from Afghan sales, under management by the US Military aegis (guys with no uniform stripes or markings). Maybe such illicit money offsets Credit Default Swap losses, making America strong for freedom and liberty. Goldman Sachs is clearly the investment banking agent for the USGovt, given the privilege of insider trading in unspeakable proportions.
They manage the Plunge Protection Team efforts to intervene in financial markets, making America strong for freedom and liberty. The new kid on the block is the FDIC. The Federal Deposit Insurance Corp is steering fresh meat into the corralled JPMorgan stockyards for slaughterhouse feeding. The label of harlot might be too kind, especially from the perspective of senior bond holders. But JPMorgan requires fresh meat (capital) periodically, thus making America strong for freedom and liberty. Never mind the fires caused after its hearty meals and flatulence.
This article discusses the JPMorgan monster, its behaviour, and teeth revealed. Robb Kirby (see his website, click HERE ) often covers JPMorgan illicit behaviour This article discusses banking system realignments to destroy savings accounts owned by the people, and the Coup d'Etat just completed. The criminals on Wall Street have taken full control of the USGovt financial management, with blank check written by a thoroughly intimidated US Congress, deceived steadily and easily. Threats and intimidation are central to the successful coup. The Ponzi Scheme has been revealed, even as the frail and tattered Shadow Banking System has been revealed. The key to the bailouts is its continued Top Down approach, which favors the Ruling Elite and denies all but crumbs to the people, who have been subjected to a foreclosure revolving door on mortgage loan assistance.
Since nothing has been solved from this approach, a total systemic breakdown is assured, whose climax will be the current Administration and the Wall Street executives in charge of the criminal syndicate riding off into the sunset in retirement. Rome burns. Much more detail is provided in the upcoming October report due this weekend. The theme is this subset synopsis article is of criminality, deception, monster exploitation, market corruption, and the collapse of a failed system, whose crescendo represents the greatest financial crimes ever witnessed in modern history. Americans do it big! The proprietary Hat Trick Letter covers much more of recent events, interpretation, and analysis, but here, focus on impropriety.
THE MONSTER, ITS BROKER & HARLOT
JPMorgan will require fresh asset meat every several weeks in order to survive, but the process will result in a sequence of severely damaging CDSwap fires. Perversely, the FDIC is their investment banker agent. Two mergers of questionable nature highlight the altered role of the Federal Deposit Insurance Corp (FDIC), which no longer protects bank depositors or their investors, but rather serves JPMorgan Chase. When Bank of America merged with Merrill Lynch, a trend started, one that exposed private stock brokerage accounts. Officially they can be legally borrowed across subsidiary lines. The FDIC averted a failure of Merrill Lynch without the credit default implications.
The other event was more blatant, as the FDIC steered Washington Mutual out of bankruptcy failure and into the JPMorgan slaughterhouse. Inside its chambers, JPM gobbled up the WaMu deposits and benefited from ratio improvements. Senior bond holders were crushed, fully denied due process from bankruptcy. The FDIC has become an ugly investment banker lookalike, serving JPM and not the US public. The FDIC owns a pitifully small $45 billion in funds available for bank bailouts, at June count. When the dust clears a year or more from now, many multiples more will be necessary for many bank failures.
The path of JPMorgan growth into a FRANKENSTEIN took radical changes in course after both the failures of Lehman Brothers and recognition that Fannie Mae & Fannie Mae had to be taken over by the USGovt. To halt the run on their bonds, the USGovt acquired the entire F&F Cesspool. The impact hit the Credit Default Swap market immediately. AIG had been weakened one week earlier from the technical default of Fannie & Freddie, which resulted in broad CDSwap payout's. Ripple effects from the Lehman Brothers failure that followed were deep and broad throughout the system, killing AIG. The Wall Street central harlot (Goldman Sachs) advised the USGovt to assume full control and risk of AIG, as GSachs avoided $20 billion in sudden losses in the nick of time, a pure coincidence!
The entire episode with Wells Fargo bidding for Wachovia, in competition from Citigroup, is steeped in comedy with vampire stars. The grapevine in Washington and Wall Street passes word that the Citigroup versus Wachovia wrestling match was actually a sponsored backdoor bailout attempt to save Citigroup, not just Wachovia. Again, the FDIC was the matchmaker. My term has been ‘Dead Marrying the Dead' which still holds true, since Citigroup has been dead for one year. Under the original Citigroup proposal, the FDIC had arranged for guarantees of $42 billion for Wachovia debt by the US Fed. The new Wells Fargo deal enabled the US taxpayers to get off the hook. The reversal by the FDIC to serve the public has caused gigantic Wall Street problems, as Citigroup now finds itself in a position more perilous than anyone believed. This battle has flip-flopped once, and might again. Citigroup would probably have died if not for the USGovt purchase of bank stocks.
THE TEETH OF THE MONSTER REVEALED
JPMorgan is a monster predator at work, hidden from view. After the Fannie Mae experience, covering their giant raft of CDSwap contracts, making huge payout's, JPMorgan was close to a bankruptcy. They needed to feed off another bank, to consume private deposits and thus shore up the balance sheet. Lehman Brothers was let go to fail, but its failure would surely trigger a gigantic wave of credit market fires. The Lehman CDSwap resolution has cost roughly $300 billion, paying 91 cents per dollar of coverage on their failed bonds. The Wall Street Powers permitted Lehman to fail, so as to prevent a JPMorgan failure, thus risking that the fires caused could be contained in CDSwap fallout. The irony is that JPMorgan undoubtedly suffered considerably from that fire in fallout. Now JPMorgan might need another Wall Street failure, for to consume another block of assets, but with yet another ensuing CDSwap fire. JPMorgan is a monster predator at work, soon hungry again. It might be eyeing Morgan Stanley. We might discover a failure in an unexpected place, like a big insurance firm, whose sector condition is not well advertised.
With each big bank failure, whether a commercial bank or investment bank, heavy damage is done to the system. The CDSwap destruction is mostly hidden, with large pillars burned out. We the people hear of the destruction only if and when a major bank fails as a result. No death, no news, however but with potentially significant hidden structural damage. As financial firms pay out vast sums on CDSwaps as in the Lehman case, and the Fannie Mae case, and the Freddie Mac case, the system bleeds capital. Lending suffers. The sequence corresponds to a powerful vicious cycle. JPMorgan will need more deaths to survive, but each death causes more deadly CDSwap fires. JPMorgan is a monster predator at work, which leaves fires on pathways where it last stepped. The best analogy is that CDSwap contract payout's from bond failures are like mini-Hiroshima events that might lead to a bigger such event. Ironically, to save JPM the financial system must destroy the shadow banking system centered in New York City, since Wall Street firms, plus Bank of America are at its center. The system lacks disclosure and transparency, just like Wall Street likes it.
Permit the pathogenesis to proceed further, and the majority of Western bank system must be burned in order to leave JPMorgan as prominent survivor to rule over a scorched empire. This process is a sick consolidation. The bank conglomerate is a major crime syndicate colossus, and center of the drug traffic money laundering, coordinated by security agencies, fully condoned by the US Federal Reserve itself. The AIG story is nowhere complete, the latest being their expensive parties. AIG has caused major complications, another monster that will resurface periodically at feeding time. Personally, my wish is to see the RICO law brought forward, at least to deposit the monster in a cage. In done my way, not a single additional US Congressional bill would be approved and granted for a bailout or rescue without rapid investigation, prosecution, turn to state's evidence, asset seizure, restitution, and imprisonment for dozens of Wall Street executives, starting with Hank Paulson.
STOCK MANIPULATION WITH DEEP MOTIVE
Few analysts, pundits, or anchors are aware of the mammoth conflict of interest involved with the USTreasury Bond sales required to pay for all the bailouts. JPMorgan, with the essential aid of Goldman Sachs, plot to bring down the DJIA index and the S&P500 index whenever the USTreasury conducts auctions or needs Congressional passage of key bailout bills. They have sold $194 billion of Cash Mgmt Bills (CMB) in the last two weeks, today $70B, tomorrow another $60B. The big stock declines seen recently work to the BENEFIT of the USTreasury and US Fed. as agent for auctions. TBill yields are down near zero, in case you have not noticed, with principal prices corresponding almost as high as the bond permits. The USGovt is conducting auctions for TBills at top dollar prices, when its credit rating should be caving in radically upon downgrades. These USTreasurys are destined to enter default at a later date, where the loss to foreign investors will be maximized. Most of the US public has savings dominated by stocks, with little in bonds. So the US public is being fleeced, coming and going, since even money markets contain toxic mortgage bonds. Look for the stock market decline to come to a surprising end when the USGovt has completed the majority of their planned emergency supply sales via auction.
The Wall Street tactics have recently turned more vicious and devious, actually creating volatility, producing fear for political purpose. They accuse hedge funds of driving up the crude oil price, rendering great harm to the US Economy and US citizens. So they urged unsuccessfully the Securities & Exchange Commission to force hedge funds to reveal their speculative positions. The Wall Street thieves and conmen wish to learn details on hedge fund positions so as to target them illicitly. In a queer twist, JPMorgan has benefited from an interesting double kill. They exploit hedge funds, wreck them, then encourage them into the fold at JPM in brokerage accounts, where their private accounts are rendered vulnerable under the new US Fed. rules. JPMorgan is a monster predator at work, which is permitted to manipulate markets and clients with total impunity.
There is one more detail. Lest one forget, Goldman Sachs was exempt from the short rule restriction placed on a few hundred financial stocks traded. The reason had something to do with market stability and integrity assurance! Goldman Sachs clearly profited from the ups & down in the Dow and S&P500, lifting stocks after Congressional agreements, pulling them down before those agreements. JPMorgan and Goldman Sachs profit handsomely when the USGovt Plunge Protection Team pushes the stock indexes up with their usual methods. Of course JPM and GSachs are the managers of the PPT efforts. YES, IT IS TIME TO PUKE NOW!!!
HIDDEN USGOVT COUP BY WALL STREET
The US Congress has been subverted by intimidation and ignorance, maybe bribery. Regulators and law enforcement bodies are mere accomplices. The entire US banking system has undergone an unprecedented grand nationalize initiative, including the financial system, when considering the mortgage and insurance giants. The total bailouts are huge when put into perspective. This is a hidden coup, complete with deep fraud, corruption, and ruin for both prosecutors and whistle blowers. The US Dollar is caught in the middle of a black hole scrambled with fraud. Paulson is the new Chancellor of US Inc, Bernanke the new Currency Lithography Manager, and Sheila Bair the Investment Banker (a la Goldman Suchs). Paulson assumes all powers over the financial state from the president, via the banking industry control.
The government bailout redemption of $trillion past fraud closes the loop. Bernanke manages all efforts to use printed money for the purpose of buying worthless counterfeited and fraud-laced bonds, buying commercial bonds and posted collateral among businesses, as well as making printed paper products available to foreign central banks in relief of past fraud. Bair will act as the director of slaughterhouse traffic for JPMorgan, which needs a steady supply of bank deposits to offset their destroyed balance sheet from continued credit derivative implosion, thereby betraying the chartered FDIC pledge to protect bank depositors and senior bank bond holders through liquidation procedures, with full recognition of expedience. Hail to the king, long live the king! The US public seems so dumbstruck that it cannot demand even full disclosure of the process, let alone private offshore bank accounts for the new leaders of the successful coup.
The coup formalizes a climax to a Ponzi Scheme. A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, without any product or service bearing true value delivered. With the ongoing steadfast support offered by Alan Greenspan, they were able to maintain an incredible Ponzi scheme. They sold financial toxic waste products in the form of Mortgage Backed Securities (MBS), Collateralized Debt Obligations (CDO), Structured Investment Vehicles (SIV), Unidentified Financial Objects (UFO), and Credit Default Swaps (CDS). My favorite remains the UFOs. The corruption of politicians in Congress enabled the process, with relaxed guidance by the Financial Accounting Standards Board (FASB). The two key ingredients for the Ponzi Scheme are a mythological ideology and a high priest to endorse the game from a credible pulpit. Alan Greenspan claimed legitimacy of the US banking system, blessed credit growth and fractional bank practices as beneficial, and praised risk pricing systems using credit derivatives as sophisticated. The high priest used to be Greenspan, but now a tag team has replaced him. Hank Paulson is the spearhead for the great coup of the US financial system. Usage of short restrictions rules has been key to both instilling instability at necessary times, and raiding hedge funds. US Fed. Chairman Bernanke swaps USTBonds for any piece of bonded garbage known to mankind. Mammoth placements of leveraged trades by Wall Street firms make for some of the most grotesque insider trading in US history.
DECEIT & INTIMIDATION
The lies, deceit, backroom pressure, and fleecing of the American public is deep. Take the Emergency Economic Stability Act. Most of the initial $250 billion outlay was not devoted to American bankers, but rather to foreign bankers, primarily in Europe and England, and to purchase preferred US bank stocks. The US public was not told about this redirection, which constitutes misallocation, misappropriation, and fraud. Tremendous backroom pressure was exerted at every step. The underlying assets involved in swaps do not even have to be US-based mortgage bonds. The formerly submitted Paulson Manifesto was revived in a power grab, complete with considerable infighting and squabbles, since Morgan Stanley was given favor. The usage of funds to buy investment stakes in the giant US banks is yet another direct Fascist Business Model tactic, assisting banks close to the power center, yet reeking with corruption. The sickening irony is that they have no more money to disseminate and distribute. They cannot reveal their lies until they formally request more Congressional funds. Much discussion has come that the USGovt should adopt the Swedish model in the resolution of the current crisis. Not in a New York minute!! That would require heavy stock and bond losses, and more transparency of scum. Interestingly, the market discounts words as worthless, while bailout actions fail to produce even a positive reaction for a full day, until Monday last week when the Dow Jones Industrial index rose over 900 points. That was clearly Wall Street engineering a profitable short cover rally. Check S&P futures positions beforehand, if you can. The credibility of the US Fed. is close to being destroyed. On October 15, the same Dow Jones index fell over 700 points, almost 8%. Even the global rate cut was rejected by stock markets, a major insult.
Intimidation of the US Congress has been huge and powerful, similar to when the Patriot Act was passed in 2002. The Congress was actually threatened by martial law in the cities of the United States if the big bailout package was not passed two weeks ago! This was not reported on CNN or CNBC, but C-Span did cover it. The mobilization of the US Army for civilian control is well known in the past couple weeks. See the Third Brigade back from combat duty in Iraq. This account came from Rep Brad Sherman of California. To achieve supposed financial stability, the nation succumbed to totalitarianism by Wall Street thieves, conmen, fraud kings, and criminals. Instead, the bailout only covered up $trillion fraud. My position has been very stable and consistent, that such tactics are typical characteristics of the Fascist Business Model. The state merges with the large corporations, who proceed to terrorize the citizenry after unspeakable protected corruption and theft. To object is to be labeled unpatriotic!
TOP DOWN SOLUTION FAVORS THE ELITE
The top-down approach used to date aids the wealthy bankers, while the homeowners are denied aid. That aid is promised but rarely arrives. The fundamental problem here is that billion$ are devoted to shore up insolvent banks, to redeem their worthless (or nearly worthless) bonds, and to give a giant pass to the executives. Trust has eroded throughout the system. Banks distrust each other's collateral. The result is that eventually the US Economy will enter not a recession, not a depression, but a DISINTEGRATION PHASE. Despite Bernanke's studious efforts, borrowing from revisionist history, his liquidity is nothing more than bailouts at the top for the perpetrators of the housing bubble and mortgage debacle. The bank system benefits little inside the US walls of finance. A bottom-up approach might have had a chance to succeed, but a top-down approach is a sham. To expect a top-down solution that actually relieves the housing inventory logjam is insane. That is like feeding a teenager with meals placed inside the human rectum, expecting nutrients to find their way to the rest of the body! The credit mechanisms do not travel upward within the pyramid, but rather in the downward direction, starting with a borrower, a good collateralized risk, and an underwritten loan, when plenty of lending capital is available. The US public has bought this stupid ‘Trickle Down' philosophy for years, learning nothing. The US Economy is on the verge of collapsing. Short-term credit is being denied at key supplier intermediary steps, soon to result in recognized disintegration.
The primary practical objective of this corrupt trio (JPM, GSax, FDIC) is to avoid Credit Default Swap fires, which would bring an end to their reign of terror. This US Economic failure is in progress and is unstoppable. The 1930 Depression resulted after monumental credit abuse from the bottom up, as hundreds of thousands of people leveraged investments 10:1 with stocks primarily. The 2000 Depression will come after monumental credit abuse from the top down, as hundreds of big financial firms leveraged investments by 7:1 and 20:1 with bonds primarily. The most absurd of all is the CDO-squared, leveraging upon leverage. Total seizures have crippled the banking system. Short-term credit has largely vanished, as letters of credit are routinely not honoured at ports in the United States. The panic will continue, especially when supplies dry up.
GOLD & SILVER AWAIT THEIR EXALTED STATUS
We are witnessing the disintegration cited in my recent forecasts. It is a systemic failure, marred by lost confidence and trust in the entire financial system. Expect foreigners soon to pull the rug from under the American syndicates in control. Several key meetings have already concluded, totally unreported in the US press, which occurred in Berlin Germany. Consider it the Anti-G7 Meeting. Implications are profound, and involved the Shanghai Coop Org tangentially, since its member nations possess so much new commodity supply. Consider it the Anti-NATO group. An important and powerful alternative financial system is soon to spring into action, including high-level bilateral barter. Those who expect the current US Regime to continue their financial terror are in for a big surprise.
Expect defaults in the COMEX with gold & silver, whose prices for paper vastly diverge from physical, to the anger of foreigners watching. They hold massive precious metals assets. Disparities now contribute to powerful forces, sure to break the current system. Grand systemic changes come. THE RESULT WILL BE A BREATH-TAKING DISCONTINUITY EVENT.
Ironically, the more inner anguish felt on the falling gold & silver prices, the closer we are to a new financial framework, with the US Dollar relegated to a Third World role. A REPLACEMENT GLOBAL RESERVE CURRENCY HAS ALREADY BEEN DECIDED UPON. Its launch awaits the proper moment. The Americans are last to know, as usual. The US leaders are under the illusion of being in control!
THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.
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by Jim Willie CB
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Jim Willie CB Archive
Bull meets bear!!
Sounds great! How high do you think it will get tomorrow before it settles down and goes sideways?
Yeah, think that's bad? I'm hearing that there's a group on the IHUB boards tracking IPOs of posts that appear to have ulterior motives and turning them over to the SEC and FBI. Also on the Yahoo board. SEC is getting some heat from our congress. Long overdue!!!
ATTENTION: SHORTS MUST READ
17 CFR PARTS 241 AND 242 [Release No. 34-58775; File No. S7-19-07]
Amendments to Regulation SHO (Final rule)
http://www.sec.gov/rules/final/2008/34-5...
SUMMARY: The Securities and Exchange Commission (“Commission”) is adopting amendments to Regulation SHO under the Securities Exchange Act of 1934 (“Exchange Act”). The amendments are intended to further reduce the number of persistent fails to deliver in certain equity securities by eliminating the options market maker exception to the close-out requirement of Regulation SHO. As a result of the amendments, fails to deliver in threshold securities that result from hedging activities by options market makers will no longer be excepted from Regulation SHO’s close-out requirement. The Commission is also providing guidance regarding bona fide market making activities for purposes of the market maker exception to Regulation SHO’s locate requirement.
EFFECTIVE DATE: October 17, 2008.
17 CFR Parts 240 and 249 [Release No. 34-58785; File No. S7-31-08]
DISCLOSURE OF SHORT SALES AND SHORT POSITIONS BY
INSTITUTIONAL INVESTMENT MANAGERS
http://www.sec.gov/rules/final/2008/34-5...
SUMMARY: The Commission is adopting an interim final temporary rule requiring certain institutional investment managers to file information on Form SH concerning their short sales and positions of section 13(f) securities, other than options. The new rule extends the reporting requirements established by our Emergency Orders dated September 18, 2008, September 21, 2008 and October 2, 2008, with some modifications. The extension will be effective until August 1, 2009. Consistent with the Orders, the rule requires an institutional investment manager that exercises investment discretion with respect to accounts holding section 13(f) securities having an aggregate fair market value of at least $100 million to file Form SH with the Commission following a calendar week in which it effected a short sale in a section 13(f) security, with some exceptions.
Effective Date: §§ 240.10a-3T, 249.326T and temporary Form SH are effective from October 18, 2008 until August 1, 2009
Harley, what do you think it will do tomorrow?
Fellow HD rider
ATTENTION: SHORTS MUST READ
17 CFR PARTS 241 AND 242 [Release No. 34-58775; File No. S7-19-07]
Amendments to Regulation SHO (Final rule)
http://www.sec.gov/rules/final/2008/34-5...
SUMMARY: The Securities and Exchange Commission (“Commission”) is adopting amendments to Regulation SHO under the Securities Exchange Act of 1934 (“Exchange Act”). The amendments are intended to further reduce the number of persistent fails to deliver in certain equity securities by eliminating the options market maker exception to the close-out requirement of Regulation SHO. As a result of the amendments, fails to deliver in threshold securities that result from hedging activities by options market makers will no longer be excepted from Regulation SHO’s close-out requirement. The Commission is also providing guidance regarding bona fide market making activities for purposes of the market maker exception to Regulation SHO’s locate requirement.
EFFECTIVE DATE: October 17, 2008.
17 CFR Parts 240 and 249 [Release No. 34-58785; File No. S7-31-08]
DISCLOSURE OF SHORT SALES AND SHORT POSITIONS BY
INSTITUTIONAL INVESTMENT MANAGERS
http://www.sec.gov/rules/final/2008/34-5...
SUMMARY: The Commission is adopting an interim final temporary rule requiring certain institutional investment managers to file information on Form SH concerning their short sales and positions of section 13(f) securities, other than options. The new rule extends the reporting requirements established by our Emergency Orders dated September 18, 2008, September 21, 2008 and October 2, 2008, with some modifications. The extension will be effective until August 1, 2009. Consistent with the Orders, the rule requires an institutional investment manager that exercises investment discretion with respect to accounts holding section 13(f) securities having an aggregate fair market value of at least $100 million to file Form SH with the Commission following a calendar week in which it effected a short sale in a section 13(f) security, with some exceptions.
Effective Date: §§ 240.10a-3T, 249.326T and temporary Form SH are effective from October 18, 2008 until August 1, 2009
ATTENTION: SHORTS MUST READ
17 CFR PARTS 241 AND 242 [Release No. 34-58775; File No. S7-19-07]
Amendments to Regulation SHO (Final rule)
http://www.sec.gov/rules/final/2008/34-5...
SUMMARY: The Securities and Exchange Commission (“Commission”) is adopting amendments to Regulation SHO under the Securities Exchange Act of 1934 (“Exchange Act”). The amendments are intended to further reduce the number of persistent fails to deliver in certain equity securities by eliminating the options market maker exception to the close-out requirement of Regulation SHO. As a result of the amendments, fails to deliver in threshold securities that result from hedging activities by options market makers will no longer be excepted from Regulation SHO’s close-out requirement. The Commission is also providing guidance regarding bona fide market making activities for purposes of the market maker exception to Regulation SHO’s locate requirement.
EFFECTIVE DATE: October 17, 2008.
17 CFR Parts 240 and 249 [Release No. 34-58785; File No. S7-31-08]
DISCLOSURE OF SHORT SALES AND SHORT POSITIONS BY
INSTITUTIONAL INVESTMENT MANAGERS
http://www.sec.gov/rules/final/2008/34-5...
SUMMARY: The Commission is adopting an interim final temporary rule requiring certain institutional investment managers to file information on Form SH concerning their short sales and positions of section 13(f) securities, other than options. The new rule extends the reporting requirements established by our Emergency Orders dated September 18, 2008, September 21, 2008 and October 2, 2008, with some modifications. The extension will be effective until August 1, 2009. Consistent with the Orders, the rule requires an institutional investment manager that exercises investment discretion with respect to accounts holding section 13(f) securities having an aggregate fair market value of at least $100 million to file Form SH with the Commission following a calendar week in which it effected a short sale in a section 13(f) security, with some exceptions.
Effective Date: §§ 240.10a-3T, 249.326T and temporary Form SH are effective from October 18, 2008 until August 1, 2009.
ATTENTION: SHORTS MUST READ
17 CFR PARTS 241 AND 242 [Release No. 34-58775; File No. S7-19-07]
Amendments to Regulation SHO (Final rule)
http://www.sec.gov/rules/final/2008/34-5...
SUMMARY: The Securities and Exchange Commission (“Commission”) is adopting amendments to Regulation SHO under the Securities Exchange Act of 1934 (“Exchange Act”). The amendments are intended to further reduce the number of persistent fails to deliver in certain equity securities by eliminating the options market maker exception to the close-out requirement of Regulation SHO. As a result of the amendments, fails to deliver in threshold securities that result from hedging activities by options market makers will no longer be excepted from Regulation SHO’s close-out requirement. The Commission is also providing guidance regarding bona fide market making activities for purposes of the market maker exception to Regulation SHO’s locate requirement.
EFFECTIVE DATE: October 17, 2008.
17 CFR Parts 240 and 249 [Release No. 34-58785; File No. S7-31-08]
DISCLOSURE OF SHORT SALES AND SHORT POSITIONS BY
INSTITUTIONAL INVESTMENT MANAGERS
http://www.sec.gov/rules/final/2008/34-5...
SUMMARY: The Commission is adopting an interim final temporary rule requiring certain institutional investment managers to file information on Form SH concerning their short sales and positions of section 13(f) securities, other than options. The new rule extends the reporting requirements established by our Emergency Orders dated September 18, 2008, September 21, 2008 and October 2, 2008, with some modifications. The extension will be effective until August 1, 2009. Consistent with the Orders, the rule requires an institutional investment manager that exercises investment discretion with respect to accounts holding section 13(f) securities having an aggregate fair market value of at least $100 million to file Form SH with the Commission following a calendar week in which it effected a short sale in a section 13(f) security, with some exceptions.
Effective Date: §§ 240.10a-3T, 249.326T and temporary Form SH are effective from October 18, 2008 until August 1, 2009.
Did anyone on the board call this close? Who came the closest to calling this today? Anyone?