Screw the Banks and Investment Firms

[can't sit still]

You DID notice, didn't you ??? Most people prefer to NOT pay attention. GOV presents itself as the ultimate "security blanket" . When you point out to people that their ultimate security blanket is a fraud, they tune you out to keep panic at bay.

[cowboyangel]

si senior, that is why we are fucked....

[can't sit still]

I disagree. Burners are all well versed in radical self-preparedness.

[can't sit still]

The truth comes out at last;
http://www.huffingtonpost.com/andy-boro ... 50586.html

[can't sit still]

This is an interesting article about the futures and commodities. The thing that makes it interesting is the size of the numbers.
"The figure, according to the Commodities and Futures Trading Commission own numbers, of $600 trillion is the amount which lurks under the auspices of “notionalâ€

[FIGJAM]

A nova program just ended about how anytime money is involved people become irrational. That explains everyting........lol......

[can't sit still]

This is somewhat interesting;
"What died today was Goldman Sachs. It has existed for 140 years. But today all that ended"
http://www.huffingtonpost.com/steven-g- ... 4371.htmlI " I expect Goldman Sachs to be out of business by the end of this year "

[cowboyangel]

Bring Down Goldman Sachs and Expose the Financial Coup
The Role of the SEC and the US Congress

by David DeGraw


Global Research, April 28, 2010


Not only did Goldman Sachs profit on betting against CDOs they designed to fail; more importantly, they insured them through AIG which led to a $182 billion taxpayer bailout.

Have you heard the news? It’s everywhere! The SEC and Congress have all of a sudden sprung to life and are now “getting toughâ€

[can't sit still]

It's become fairly obvious that all morality has gone out of the financial industry. Profit from misery,, profit from destruction of productive industry,,, profit from destruction of the economy.,,, profit from destruction of society. There is no depth that is too low for a banker. There is NO situation so desperate that it doesn't elicit a chuckle from the perpetrator.
There is new profit to be made from new misery. In this case, the banks are betting and hoping for a good payoff from the collapse of state GOV;
http://online.wsj.com/article/SB1000142 ... ctions_new
At what point will the bankers see that there is a downside?

[cowboyangel]

When they are all dead?

[dragonfly Jafe]

they probably have short orders for that too...

[can't sit still]

When they are all dead?

Therein lies the BIG question.
Historically, when a predator worked against the interests of society, it or he were killed. We like to believe that society has reached a point to where this is no longer justified,,,, for 2 legged predators anyway.
Like a dog that just keeps coming back and stealing chickens, the 2 legged predators never stop. Either we believe that the predations are not serious enough to exact the ultimate penalty or; we believe that executions harm society in some way.

Bernanke said that the FED caused to Great Depression. A Russian researcher said that 7.4 million Americans starved to death in the depression. I haven't looked at his work.
40 million are on food stamps and the banks are going to close this summer.

Millions can't afford heat and food. How many deaths will it take before we institute the ultimate deterrent?
1% of our adult population is in the prison system. Does that define us as a failed society? Does high recidivism mean that our current deterrents are not working?
The rich and powerful seem to be immune to prosecution. Does that cause us to be cynical and ignore the law?
Can a society be called "just" if the rich can do anything that they want? If incarceration doesn't work, should execution be more widely used?

[Ugly Dougly]

My company's giving out bonuses this quarter, for the first time in about a year.

What should I buy with it? Gold?

[ygmir]

I'd lean towards silver........or, a commodity based mutual fund.

[can't sit still]

Dougly, silver has historically traded at about 15--1 to gold. As science progresses, more and more uses are found for silver. They even have a method for substituting silver for palladium and rhodium in catalytic converters. I read a report that the second biggest consumer of silver is for silver impregnated cloth. Dunno much about it;
http://www.silvermedicine.org/nasa-silver-clothing.html
Silver is now at $ 18.73 with gold at $ 1180. If silver were to return to 15--1, it would be a LOT higher.
JFK printed U.S. notes in competition with FR notes. They were backed by our 4 billion ounces of silver. JFK was quickly eliminated and the printing was stopped immediately by LBJ. Then GOV proceeded to sell off the silver to keep anyone else from getting any bright ideas. It took a while but, all the silver was gone by October of '05. The 4 billion ounces had artificially depressed the price of silver for many years.
There is so much silver consumption that some believe that there is more above-ground gold than above-ground silver. Silver is used by industry and they won't accept paper like gold speculators. The mints and bullion banks have chronic shortages.
Silver is a good bet. It's not likely to get confiscated either.

[cowboyangel]

And... those who "were" doing God's work, are now being looked at by the justice department in a possible criminal case! Voila! Llyod, hope you're shitting in your pinstripe pants you rotten bastard.

[can't sit still]

This came in mail. Reportedly, the losses to the FDIC doubled last week. Another problem is that Puerto Rico banks are collapsing. This may have an effect on any statehood bid.
The FDIC is backing the banks. The losses from FHA are going to be a lot worse and it's backed by treasury. Same with ma n Mae.
The problem is endemic and systematic. Everywhere, debt has been substituted for wealth.


The following are some additional thoughts on the seven bank failures announced by the FDIC on Friday, April 30, 2010.

1. Perspective on Losses

This week's losses were extremely serious, a fact belied by the virtual absence of press coverage. They were the largest in any single week since the failure of IndyMac Bank on July 11, 2008.

IndyMac had assets of about $32 billion and deposits of $19 billion. Its failure cost the FDIC an estimated $8 billion.

The seven banks that failed this week had combined assets of about $25.8 billion and deposits of $19.6 billion. These failures cost the FDIC an estimated $7.33 billion.

Prior to this week, the FDIC's estimated losses from 57 bank failures in 2010 stood at about $8.6 billion. This week's failures practically doubled that figure, to $15.93 billion.

This information cannot be reconciled with the MOPE that states the banking sector has recovered. To the contrary, these failures speak of deeply-rooted problems in the banking sector that appear to be getting worse over time.

2. Status of the Deposit Insurance Fund

According to an AP article posted Friday (cited below), the FDIC's deposit insurance fund "fell into the red last year, hitting a $20.9 billion deficit as of [Dec. 31, 2009]." With this year's losses, the fund's deficit has grown to at least $36.8 billion. In addition, the FDIC has a huge exposure for worse-than-expected losses on some $165 billion of assets taken over by acquiring banks.

That pretty much wipes out the $45 billion the FDIC announced it was going to raise by requiring banks to pre-pay premiums for the period, 2010 through 2012. Obligations of the FDIC will soon become obligations of the U.S. taxpayer, adding billions of dollars each year to already out-of-control federal deficits.

3. More FASB-Blessed Fantasy Valuations

Each of the FDIC's press releases provides vital information about the true market value of the failed banks' assets versus the values assigned them by bank management. This gives some insight into the extent of over-valuations across the banking sector in the wake of the Financial Accounting Standards Board ("FASB") having suspended fair value accounting rules last year.

The FASB's capitulation has given bank management far too much leeway to value assets at levels far beyond what they could fetch in the open market, resulting in banks' balance sheets becoming increasingly less reliable indicators of their true financial health.

Looking at the five largest failures this week:

Westernbank Puerto Rico of Mayaguez, Puerto Rico, had stated assets of $11.94 billion and deposits of $8.62 billion. On paper, it was an extremely healthy bank; yet the FDIC's loss estimate for its closure is $3.31 billion. Based on that estimate, the real market value of its assets is only $5.31 billion. Bank management had over-valued these assets by 125%.

R-G Premier Bank of Puerto Rico of Hato Rey, Puerto Rico, had stated assets of $5.92 billion and deposits of $4.25 billion. The FDIC's loss estimate for its closure is $1.23 billion. Based on that estimate, the real market value of its assets is $3.02 billion, and had been over-valued by 96%.

Frontier Bank of Everett, WA, had stated assets of $3.5 billion and deposits of $3.13 billion. Its loss estimate is $1.37 billion. Based on that estimate, its assets are really worth $1.76 billion, and had been over-valued by 99%.

Eurobank of San Juan, Puerto Rico had stated assets of $2.56 billion and deposits of $1.97 billion. Its loss estimate is $744 million. Based on that estimate, its assets are really worth $1.226 billion, and had been over-valued by 109%.

CF Bankcorp of Port Huron, MI, had stated assets of $1.65 billion and deposits of $1.43 billion. Its loss estimate is $615 million. Based on that estimate, its assets are really worth $815 million, and had been over-valued by 102%.

Here again, these bank failures are being reported free of any allegations of fraud or even negligence on the part of bank management. Absent any such allegations, it stands to reason that these over-valuations, ranging from 96% to 125%, are considered to be in line with reasonable accounting practices sanctioned by the FASB at the time it suspended fair value requirements.

4. AP Article Covering Failures

Linked below is an AP article that provided some better-than-average coverage of this week's failures and the status of the FDIC's finances. Interestingly, the article was originally published at about 8:15 pm EST on Friday, April 30, 2010, but had to be re-posted at 10:00 pm EST following the FDIC's release of additional information late in the evening.

Focusing on the three banks that failed in Puerto Rico, the AP noted they "together held more than one-fifth of the total bank assets on the U.S. Caribbean territory."

Here's some food for thought. Puerto Rico's GDP is about $76 billion, about 21% of the size of Greece's ($356 billion). What is more relevant to the concerns of U.S. citizens, the fact that Greece is experiencing budget problems, or that FDIC-insured banks controlling one-fifth of the value of the assets on Puerto Rico failed in one week?

What possible explanation could there be for the fact that the Greek "crisis" has been dominating headlines in the U.S. press for months, while matters such as these horrendous bank failures and the impending failures of the majority of U.S. States barely get a mention?

Can you say, Manipulation of Perspective Economics?

Respectfully yours,
CIGA Richard B.

Banks closed in Puerto Rico, Mich., Mo., Wash.
Regulators shut down 7 banks in Puerto Rico, Mo., Mich., Wash., brings total to 64 this year
Marcy Gordon, AP Business Writer, On Friday, April 30, 2010, 10:00 pm

WASHINGTON (AP) - Regulators on Friday shut down shut down three banks in Puerto Rico, two in Missouri, and one each in Michigan and Washington, bringing the number of U.S. bank failures this year to 64.

The Federal Deposit Insurance Corp. took over the banks: Westernbank Puerto Rico, based in Mayaguez, with about $11.9 billion in assets; R-G Premier Bank of Puerto Rico, based in Hato Rey, with around $5.9 billion in assets; and San Juan-based Eurobank, with $2.5 billion in assets.

The FDIC also seized CF Bancorp, based in Port Huron, Mich., with about $1.6 billion in assets; Champion Bank, of Creve Coeur, Mo., with $187.3 million in assets; BC National Banks, of Butler, Mo., with $67.2 million in assets; and Frontier Bank, based in Everett, Wash., with $3.5 billion in assets.

Banco Popular de Puerto Rico agreed to acquire Westernbank's deposits and about $9.4 billion of its assets. The FDIC will keep the remainder for eventual sale. Scotiabank de Puerto Rico agreed to buy all the assets and deposits of R-G Premier Bank. And Oriental Bank and Trust is acquiring all the assets and deposits of Eurobank. The three healthier acquiring banks are based in San Juan, the Puerto Rican capital.

The three failed banks together held more than one-fifth of the total bank assets on the U.S. Caribbean territory. They had struggled to stay afloat during Puerto Rico's grinding, four-year recession.

It was Puerto Rico's largest bank consolidation in more than two decades as well as one of the FDIC's biggest resolutions of failed banks in the financial crisis that struck in fall 2008.

More...

[Ugly Dougly]

I'd lean towards silver........or, a commodity based mutual fund.

I was kidding about the gold, you guys. Gold is way too high right now to be a wise investment choice, besides it doesn't leap enough to make a profit off it.

With the recent stock drop, there are plenty of great bargains on Wall Street. The story is that a simple typo replacing a sell order for a $16 million with $16 billion, triggered the sell-off.

A quarter of a million new jobs in April (WSJ) even AIG is turning a profit (WSJ). Things are looking up.

[cowboyangel]

a new bill proposal....outlaw republicans and democrats who vote with them. Result= better planet, friendlier countries and break up of the large evil banks.

[Trishntek]

We put a significant amount into Morgan silver dollars. They are pre-1933 and immune from gubmint confiscation. Not only are they valuable for their silver content (0.77 ounce) but for their numismatic status as well.

IMHO, by the time BM2010 rolls around we will be in an economic shit storm. I think the politicians will try to make things appear rosy through the election cycle but it seems to me the economy will be sucking air before November.

[ygmir]

a new bill proposal....outlaw republicans and democrats who vote with them. Result= better planet, friendlier countries and break up of the large evil banks.

that's disappointing...........

[cowboyangel]

what? you like big banks? I know they're, like all warm and fuzzy....

[ygmir]

what? you like big banks? I know they're, like all warm and fuzzy....

oh, no, not at all........

the statement about outlawing reps and dems who vote with them........so vitriolic.......
I think there's plenty of room at the table for opposing viewpoints.........
dems and reps......and, I mostly opposed both.

do/would , you really only want one point of view? One way of looking at things? No opposition, no "out of the box" thinking?

I guess I take you as an open thinker, intelligent, if not biased and opinionated. But, those are fine enough traits.
I just would not have thought to hear you want a whole (arguably half) segment of society to be gone............

[cowboyangel]

clue you in ygmir

we have only one viewpoint and one party, and that is the viewpoint of the ruling, monied class and their interests. They have servants who masquerade as democrats and republicans.

[Trishntek]

clue you in ygmir

we have only one viewpoint and one party, and that is the viewpoint of the ruling, monied class and their interests. They have servants who masquerade as democrats and republicans.

what about the monied class whose interest is to create a mediocre society based upon fairness so nobody can possibly excel or fail and everybody is totally dependent upon their benevolence for their very existence?

[ygmir]

clue you in ygmir

we have only one viewpoint and one party, and that is the viewpoint of the ruling, monied class and their interests. They have servants who masquerade as democrats and republicans.

do you then, believe, the only monied ones are republicans? and a few democrats that vote with them?............

I bet it would be very interesting, to see how the wealth/party breakdown shakes out.

Of course, it would also be interesting, where the "monied" line is drawn.


I agree, sort of, with you CA:
That's why, I'm more of technical anarchist, than anything.
and, total anarchy, is to far, IMHO..........I just want to approach it very closely.

[cowboyangel]

Let's watch what happens in Greece very closely. They've taken a big loan and now must enforce austerity measures. That type of IMF bullying program awaits the United States. Raise taxes here? Lengthen the work week? All so rich investors can stay happy?...I don't think so. Read this guy,

http://www.kunstler.com/index.php

There is another bubble growing that most people are unaware of. When that bursts, all hell will break loose. It's about phony money , magic money and how the banking system continues to deceive the people.

See Paul Grignon:
http://paulgrignon.netfirms.com/MoneyasDebt/index2.htm

[can't sit still]

It is NOT going to work out in Greece. The loan won't cover the debt. They'll soon have to borrow more. The injustice in Greece is the same as the injustice in Iceland. The people lose and the banks get 100 % . The banks took the risk. The people take the fall. Greece is going to keep burning.
Once again, you have to think about motivation. The Greeks are not motivated to pay off the banks. Just wait til Spain gets all fired up.

[can't sit still]

Man !! Talk about denial !!
"held an emergency summit to hammer out a lending mechanism for deficit-stricken nations. "
They just don't seem to get it. There isn't ANY lending [u/] mechanism that will save Greece. Greece just can't pay back a loan.
http://www.gata.org/node/8619
The same goes for Spain and Portugal. The ECB is forbidden from printing the money. Either they do debt forgiveness now, or Greece will do debt repudiation later. Spain will be much worse. America will get there sooner or later. I suppose that the bankers would be willing to accept all our resources and infrastructure in lieu of cash payment. They're not stupid. What good is pile of paper?

[can't sit still]

Well, the stage is set. The battle lines are drawn. The sharks sniff weakness [ blood ] in the Euro Zone. The ECB is going to defend the Euro. The wolves are going to attack. The EMU is fighting for survival. The wolves are fighting for profit;
http://www.bloomberg.com/apps/news?pid= ... Ibt8&pos=1
George Soros made a cool $ billion exploiting a small but serious weakness in the British Pound.... in just one transaction.
The system is rigged in favor of the wolves. They don't give a shit how much destruction they cause. The IMF is standing, waiting on the sideline. They'll gladly offer a bucket of water today for a bucket of blood in the future. The system is legally rigged. There are laws to facilitate attacks. GOV is too slow and too timid to change the laws. The blood will flow,,, the commoners will starve.
After the pack brings down the Euro, The GB pound will be the next to fall. It's already on it's deathbed.
The pack sees only profit. They see no downside. They will destroy currencies for profit. If they projected a bit farther, they would realize that they have to collect their gains in,,, currencies.
Dan