Stacy Summary: Wow, this is looking like business as usual in the wrong kind of way. Oh boy, this isn’t going to end well . . . By the way, check out the cool cartoon / art work created by Dave Miller. It’s about ‘working for free’ and it’s on our forum board!
Morgan Stanley plans to repackage a downgraded collateralized debt obligation backed by leveraged loans into new securities with AAA ratings in the first transaction of its kind, said two people familiar with the sale.
Morgan Stanley is selling $87.1 million of securities that it expects to receive top AAA ratings and $42.9 million of notes graded Baa2, the second-lowest investment grade by Moody’s Investors Service, according to marketing documents obtained by Bloomberg News. The bonds were created from Greywolf CLO I Ltd., a CDO arranged in January 2007 by Goldman Sachs Group Inc. and managed by Greywolf Capital Management LP, an investment firm based in Purchase, New York.
Two years after the credit markets began to seize up, costing the world’s biggest financial institutions $1.47 trillion in writedowns and losses, banks are again taking so- called structured finance securities and turning them into new debt investments with top credit ratings. While the Morgan Stanley deal is the first to involve CDOs of loans, banks have being doing the same with commercial mortgage-backed securities in recent weeks.
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The write downs begin…just another $1.2 quadrillion in derivatives to go!!!! Wow, another fraud paper security to market…how ingenious….My question is: which pension fund is stupid enough to buy one let alone several million worth? or maybe the Harvard endowment fund!!!! Surely PIMCO isn’t in the mix? or are they behind this incredulous activity…
@Stacy:
What would be the market for the new shitburgers, um CDO/bonds? Will there be shotgun wedding buyers?
@frances snoot – ha ha, well sadly the market for these shitburgers are the pension funds; any passsive money still standing . . . and 401ks are only down about 40 – 50% so there is still 50 – 60% sitting on the table into which the bankers can dump this crap
That is blatant stealing!!!!
How much of the crap is set to blow up? I remember Romer saying the PPIP might need up to 12T, and that was okay…but I can’t find the article (NYtime interview)…interesting seeing this:
http://whiskeyandgunpowder.com/401k-as-dangerous-as-the-dollar/
Congratulations to you and Max (btw)!!!
Everything suggests that the American bonds seized at Chiasso are real
http://www.asianews.it/index.php?l=en&art=15648&geo=&theme=&size=A
AsiaNews had also received similar reports: one of the two Japanese arrested in Chiasso and then released is Tuneo Yamauchi, is the brother of Toshiro Muto, until recently vice governor of the Bank of Japan.
You absolutely have to starve the populace of liquidity in order to force the sale of the plum assets for next to nothing. As I’ve said before, the real bargains don’t happen until the populace has been literally starving for a decade. We aren’t even close. Of course, we saw some early fire sales in the banking sector, when the largest retail bank presence in the country was bought for a giveaway in a “crisis”. Expect far more of these sorts of, “huh?” moments over the next few years, as the rhetoric is all about stimulus, but the reality is tightening.
The way it was done in the depression was higher taxes, protectionist tariffs, and devaluation of the dollar, coupled with increasing margin requirements at banks (thereby draining circulation of yet more dollars) and the government hoarding tax revenues as opposed to redeploying them into circulation.
Today, we have the Fed secretly, and for the first time in history, paying interest on deposits, thereby eliminating any real reason for banks to deploy capital, except maybe by investing in T-bills for a sweet risk-free arbitrage. The system is now set up to keep money out of circulation. It’s working, far as I can tell. Next come higher taxes, and then protectionist/nationalistic trade wars designed to strengthen domestic monopolies at the expense of free trade and general prosperity.
Wouldn’t entirely surprise me if they made physical gold illegal again, although there isn’t much basis for doing so, and they can accomplish the destruction of commodities values much more effectively via derivatives, which is how it’s all done these days.
So look for continued and rising unemployment, deflation in assets even as the Fed prints more money but the banks hoard it, tightening credit for the same reason, and the entire media/government apparatus to pretend to not understand what is happening, even though the government and its banking masters engineered it.
And don’t hold your breath for any investigations into Bear or Lehman or Fanny or Freddy or Wachovia trading to ever surface, nor any into oil manipulation. That’s off limits, clearly.
Pretty F-d up world, but there you have it.
@Stacy
you keep talking about this “forum board” what on earth are you talking about? “Forum board” you kids today I swear! (I am 39
he he he)
@Stacy; So if I had called these new “items”–S**TBURGERS” then I might received a reply…I’ll take that into account..or are you two twittering???
@ Neo-feudal Casino Gulag
Plantation Economy Minion: It must be deja vue all over again…please refer to a comment I posted under the recent TAM episode blog…almost identical to a your comment to a tee…as the accumuation of funds is remaining uncirculated within the banks…etc..
hahaha….triple A bonds?
call them what they are….IEDs
@Rasta – IEDs . . . that’s funny!
@Richard@Lat30N – yes, yes, make sure you swear next time!!
It is like having a spychopatic brainsurgeon and knowing it. ‘Yeah, we are going to take shit and pretend it is gold, are you with us?’.
This demonstrates the practice of desensitization. You can reduce the chance of a respones by announcing events out of context. It will not be new when it actually happens so it less activates our consienceness. The more blatant the warning the more desensitizing it is.
You get the ‘this is the only stimulus’, then ‘there might be a second stimulus’, then ‘there will be a second stimulus’. The slow boil…
@Max & Stacy!
I am having one of those OMG-sensations! Peter Schiff got a couple of minutes in the swedish news on prime time! This is an improvement (how silly really!)… wonder if US is ready for the collaps now so they have “approved” the broadcast?… one wonders!
@Richard@Latitude30N:
It’s all part of Stacy’s crap and trade program. I bought in at the shitburger level and am ready now for more liquidity!
G-8 leaders to receive books on Canova, gold coins
Its all right for some!
http://news.yahoo.com/s/ap/20090708/ap_on_re_eu/g8_summit_gifts_2
Yes these new securities come with AAA rating and OOO approval..
Look at the price of gold!
Now this is helluva interesing:
“Handmade books portraying works by Neoclassical sculptor Antonio Canova, as well as gold coins representing an imaginary future world currency will be given to the participants at the opening of the three-day summit.”
http://bit.ly/wMAsN
Commerzbank is set to be the biggest beneficiary of a proposed change in German accounting rules that will ease pressure on banks’ reserves of capital.
The change could be made this month – in time for German banks to use the measure when reporting their second-quarter results – and is being supported by the finance ministry amid growing concern that companies will be starved of credit if the financial sector continues to hoard capital.
FROM: Rule change set to boost Commerzbank http://tinyurl.com/lmml29
From Danny: Baltic Exchange made changes in calculating BDI http://tinyurl.com/l69mmh
@Max & Stacy, you know we all love you!.. but I just have to post this runup of all the statements of Peter Schiff in 10 minutes… made me laugh in an ironical way.
Damn I am happy I caught up on what is REALLY going on thanx to Max&Stacy and Peter and the rest!
http://www.youtube.com/watch?v=f-bMneOKP24
@Stacy:
thanks for the mention!
@Danny Talking about gold:
COMEX Gold was again headed to break the $920 per ounce level even though the US equities gave a signal of negative start and the Asian and European markets also witnessed heavy losses.
According to a renowned Mumbai based analyst, Gold is currently hovering in a no man’s land with the bulls eagerly waiting for a rebound to levels of $950+ while bears continue to salivate at the $900 mark to be broken. http://tinyurl.com/ljxl7t
Gold prices set for record highs by end 2009:GFMS http://tinyurl.com/lch564
@frances snoot: Oh, I understand…that whole crap and trade thread went right past me…I guess I wasn’t ready that day for with sense of humor…Last October while Dr. Ravi Bhatra,TMU professor and economist, was on the Thom Hartmann program, I called in and said there were $1 quadrillion to $1.5 quadrillion in derivatives and that IMHO it would take up to 20 years to settle( as the annual global GDP was $65 trillion, and thus 20 years to settle) …Oh no,Dr. Bhatra said :”no more than $200 trillion”…then months later Hartmann revised his statement to $1 quadrillion to $1200 trillion…So I seem to get no respect…I found out those details on http://www.worldreports.org in June 2007!!!!! So I seem to on target yet don’t have the inside track with the Max Keiser/Stacy Herbert thread …..I still enjoy the comments and the articles/videos/radio transmissions..
Denninger : **FLASH** Goldman Code Theft BOMBSHELL?
…
God help Goldman if this is true and the government goes after them. This would constitute massive unlawful activity. Indeed, the allegation is that Goldman alone was given this access!
God help our capital markets if this is true and is ignored by our government and regulatory agencies, or generates nothing more than a “handslap.” Nobody in their right mind would ever trade on our markets again if this occurred and does not result in severe criminal and civil penalties.
…
…
http://market-ticker.denninger.net/archives/1192-FLASH-Goldman-Code-Theft-BOMBSHELL.html
Great work Karl, slow but always gets there in the end !
Zero Hedge deserves BIG CREDIT … but have to say I’ve been moaning about this for years !
PS: Max has been moaning even longer of course !
What do you think of this fells?
http://www.youtube.com/watch?v=6GukmDO89KI&feature=channel
http://www.youtube.com/watch?v=tVOaBWf4AmQ&NR=1
@Fibon1123 .. Dr. Berninger from Hamburg
Yes, I watch all his stuff and it’s good that he does the show parallel in English/jberni1 and German/jberni2…. so the Germans get kept up-to-date with the US events.
A slight criticism is that he sometimes mentions that he does private (paid) consultancy .. which is not my taste for YT.
His videos are very good IMO !
@Richard@lattitude30N
Well in fact you succeeded cause you stimulated this Bhatra bloke to look into this matter seriously again.
This is more file sharing / telecom news:
Net neutrality doesn’t exist, CRTC told
Consumer groups seek guidelines to protect privacy
http://www.cbc.ca/arts/story/2009/07/06/tech-090706-internet-traffic-management-crtc-hearings.html?ref=rss
[...]
Congestion is a natural occurrence on the internet, partly due to unexpected events such as Michael Jackson’s death, said Don Bowman, chief technology officer for the network technology company Sandvine Inc., on the first day of hearings before the Canadian Radio-television and Telecommunications Commission in Gatineau, Que.
“In times of congestion, an unmanaged network is not a neutral network,” he said. “Inequalities in application design and user behaviour mean that an unmanaged network inherently favours certain applications and their users.”
The CRTC is trying to determine what traffic management practices are “acceptable” under the Telecommunications Act in order to create a set of guidelines for internet service providers.
CBCNews.ca will be attending and covering the hearings as they continue through July 13.
[....]
Scope of the hearing
The CRTC is trying to develop guidelines for internet service providers on acceptable ways of managing internet traffic and congestion, taking into account both the freedom individuals to use the internet as they wish and the interests of ISPs to manage their networks.
The commission is focusing mainly on the questions:
What internet traffic management practices are acceptable and should any be considered as completely unacceptable?
Should ISPs disclose their practices and, if so, in what form?
Does the use of internet technologies for the purpose of internet traffic management raise privacy concerns?
Is the application of certain internet traffic management practices to wholesale services appropriate?
Is there a need for the commission to specify what practices are acceptable in relation to wireless service providers?
What analytical framework should the CRTC adopt in relation to internet traffic management practices and section 36 of the Telecommunications Act?
It will avoid dealing with its November decision to allow Bell to continue to continue throttling the customers of smaller ISPs that buy network access from it, as the decision is under appeal.
800TFLOPS Multicore IC for Realtime Ray Tracing
http://techon.nikkeibp.co.jp/article/HONSHI/20090629/172373/
Max Power: Interesting link, thanks for posting.
If the herd all heads for the same watering hole then drinking places will be scarce – makes sense. As the herd races in the direction of the latest piece of disaster capitalism ‘spin’, certain resources will naturally become ‘red-hot’ and the notion of neutrality is given a dose of realism.
I was involved in a car navigation system in the mid-eighties – not satellite, a mos-fet system fed by some triangulated data-points.
During the course of the research, one of the brainer members of the team reasoned that with a satellite system – our nemisis – it would only take 50% uptake for efficiancy to peak.
This – he reasoned – was because the satellite would make recommendations on traffic flow to ease congestion. If the satellite had no knowledge of the number of cars reading its data, it would send all cars the same back-route and congestion would not be eased at all, but simply diverted, whereas if only half of the cars used the system then all cars would benefit because the load of the roads would be distributed evenly via some form of ignorance/education arbitrage.
Even so, I still can’t help but think that there exists an idea waiting to be thought which will dent the hopes of those who seek to break the internet deliberately, ease those who simply stampede dumbly from one ‘must-see’ event to the next and will make bucket loads of cash. Maybe even making someone bigger than Google in the process.
Speaking of cartoons, here’s a delightful one…a favorite of my coworkers and me. It is called “Subprime Explained.”
http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true
@Fibon1123
He reminds me of a German Mr. Rogers (Mr. Roger’s neighborhhood, kids show US, pbs)…Good for insomnia or getting the brain on low wave frequency.
CRTC and Net neutrality;
Remember when Enron forced fake undercapacity, by shutting down certain power lines for bogus reasons. This caused one of the largest power producers in the world (PG&E) to spend billions buying Enron brokered power, and go bankrupt. This led to huge California financial problems and, yes it is a stretch, CAs imminent bankruptcy.
This network not neutral because of overloads looks to me like a fake justification in for only letting certain kinds of traffic thru. We already know that the telco’s filter voice over IP because they don’t get long distance revenue. Perhaps this is all leading to a gulag gambling state in which only horse racing, poker, and the correct new will be allowed to flow over the lines.
RE: Gold’s Price
Jon Nadler of Kitco has been the only analyst that I’ve heard who’s predicted with reasonable accuracy the action of gold’s price…
http://www.kitco.com/ind/nadler/jul082009A.html
a while back, when others were saying Gold was going to $1100 by the end of Q2 (which didn’t happen)
he soberly called for it to trade in a $850-$950 range
he’s now tightened his range to $880-$900
He also talks about California legalizing weed to help generate tax revenue…
(apparently there are some commercials on the Cali Boob Tube pushing for this)
Goldman will not allow it above $1000
Mike
So, all this government stimulus is just a way of buying time while the banks continue to peddle their bad assets little by little. More repackaging dodgy products and stamping with AAA.
Isn’t this what caused the problem in the first place?
So the process is still unwinding irrespective of what is happening in the world economy.
Who are we to stand in the way of massive Govt/Banking corruption?
Sorry boys, just let us know when you think its all been wound out and we can get on with life. Cheers!
Unbelievable!
CIA chief Panetta says agency misled Congress: WSJ
Story Comments Screener
Alert Email Print Share By Michael Kitchen
LOS ANGELES (MarketWatch) — Central Intelligence Agency Director Leon Panetta told lawmakers that CIA officials misled Congress “for a number of years” since 2001, The Wall Street Journal reported Wednesday, citing a letter released from six Democratic lawmakers. The lawmakers said the CIA also withheld information about unspecified “significant actions,” but didn’t identify what those actions were or when Panetta made the statements, the report said. “This is similar to other deceptions of which we are aware from other recent periods, ” it quoted the letter as saying
I am no economist and don’t understand a lot of the terms used on this forum (that makes me pure, Ha!)
Is there a Bank War going on then?
I mean the Germans changing their laws so that the Commerzbank and compete in evil with US banks?
Banks hoarding cash for acquisitions. It seems that these banks just want to be one of the few last ones standing at the end of all this.
We are just here watching a financial war that seems to have been going on for years.
For years I have been hearing banks and big companies say “We need to compete on the world stage”. That means that national competition rules are scrapped because international competition rules are now whats important.
Australia has a ‘Four Pillars’ banking cartel. Four big Aussie banks that are protected by govt. They are all still desperate to be number one within in that four. Why? Soon there will be one!
BEST SITE EVER: Wall Street Prison Consultants…
http://www.wallstreetprisonconsultants.com/
“Going from the exchange floor to the prison yard?”
“Federal Prison Survival Programs”
“Specializing in Stock and Securities Fraud Federal Sentence Reductions”…
And can you believe it’s on FOX??
http://www.youtube.com/watch?v=Cnx6a5mlM9M&eurl=http%3A%2F%2Ffreedomwatchonfox%2Ecom%2F2009%2F07%2F08%2F070809%2Dfreedom%2Dwatch%2D22%2Dw%2Dron%2Dpaul%2Djim%2Ddemint%2Dpeter%2Dschiff%2Dtom%2Dwoods%2Drand%2Dpaul%2Ddavid%2Dr&feature=player_embedded0
@Youri Carma: thanx for the kudos…It was Hartmann who changed his tune not Bhatra ( Bhatra later quoted the BIS figure of $563 trillion)…regardless, what I should have called it is a “winding down” not a write down…
@Mini US: “last man standing…”
Yes. Apparently the oligarchs are in a battle royal…the have captured the monetary system ( or probably never lost control!!), including all the “sovereign” governments, the central banks and their central bank ( BIS ), and cornered the important commodities, industries and allegiance of the military services….but most of all the machinations of the covert financial coup d’etat continues( see Wantagate and the precursor BCCI scandal and other activities…Ambroisiano Bank of the Vatican, etc….)….Clearly the Cap and Trade Act will reinvigorate another derivative boom….and a massive amount of new taxes to cover the losses….And the Health Care Act will reestablish control by Big Pharma over humanity mandating vaccinations ( ie: A-H1N1 ) that are useless before they are administered….and fostering a system of mandatory compliance or expulsion from receiving any care……….The solution is a very Hinayana Buddhist training….take care of yourself and do no harm….
An Oldie But A Goodie…
Well worth a relisten, or a first listen.
Naomi Wolf and Lew Rockwell…
http://www.lewrockwell.com/podcast/?p=episode&name=2008-10-30_058_americas_slow_motion_fascist_coup.mp3
What is a former CIA director doing hosting a media conference (check fotos) ?
http://www.huffingtonpost.com/2009/07/08/sun-valley-media-conferen_n_228221.html
GOLD MANIPULATION
From the suposed 8.133,5 ton of gold in Fort Knox nothing can be sold without the permission of Congres. But it nowhere it says that the gold can’t be leased or swaped against other assets? But nothing is made clear about this and the last time they asked Greenspan about it he said: ‘central banks stand ready to lease gold in increasing quantities, should its price rise’.
De Australian Central Bank said in 2003: ‘foreign currency reserves and gold are held primarily to support intervention in the foreign exchange markets’!
In Juni 2005 William S. White stipulated (Head of the Monetary and Economical department of the Bank of International Settlements (BIS) in Basel): ‘one of the five main purposes of central bank cooperation is the provision of international credits and joint efforts to influence asset prices – especially gold and foreign exchange – in circumstances where this might be thoughtful’.
The directives for manipulating the COMEX come from the President’s Working Group on Financial Markets, better known as the Plunge Protection Team (PTT) – The president, minister of finance, the FED, Commodities Futures Trading Commission (CFTC) en de Securities Exchange Commission (SEC). The principle of the seperation of powers, checks and balances doesn’t mean anything here!
FROM: MEGA MARKET MANIPULATION II: (Google translation from Dutch) http://tinyurl.com/dgw9f8
@ Rasta,
“hahaha….triple A bonds? call them what they are….IEDs”
LoL, I like it.
‘Improvised Exploding Derivatives’?
when I was a fledgling marijuana grower in the late 70′s and early 80′s…yes I admit to this endeavor…it gave me great pause to evaluate the education that was brow beaten in to me since the mid-1950′s….clearly the strenuous physical exertion that is needed to be successful at this counter cultural form of horticulture awoke in me how certain words were lifted from the lexicon…in the pioneer days hard work by both the male and female members of the family was expected…this form of “industriousness” was defined in that exertion…yet as the 20th century became the Industrial ( and the post-industrial) age, the word “industry” conjured in the mind a vision of smoke stacks and factories and machinery…thus the actual “personal industriousness” was replaced by that of a corporate factory where the employees were mere pawns to the “might” of the giant edifice…reversing the real meaning and thus transforming the mind to accept that a person was a meek entity and not the core foundation that made the factory exist at all….In essence we have transferred our valor and fortitude to an inanimate object: the factory…and have belittled the fundamental contribution to society that labor provides…I suppose this rant is rather obtuse..but as we comment back and forth in this blog or others I seems to realize we have once again become stupified and as a civilized people allowed the profligrates to capture the media and to infuse into the minds of the young ( and old )…that GREED IS GOOD!!!! and very American!!!! I abore this viewpoint…that is why when the sh*t hits the fan as so many trends forecasters predict ( when is the $64 question) so many won’t have a clue that we have to turn back to the the land and relearn the tried and true hunter/gatherer or farmer/tiller/herdmen lifestyle of the past ( as a side note: In the 70′s I once met a fellow in Oregon who moved there to grow wheat…he was from LA and at that time a loaf of bread was a dollar…from the mega city to the farm!!!!) WOW!!! was he ahead of the times…)