Category Archives: Financial

Pam Martens & Russ Martens ~ Two Charts That Should Frighten Fed Chair Yellen

“Unprecedented income inequality occurred just before the two greatest crashes in U.S. history. On the wealth and income inequality front, things are not getting better.”  – P Martens & R Martens

Any ideas that household balance sheets in the U.S. have been repaired since Wall Street took a wrecking ball to the nation’s economy in 2008 were dashed with the release of a study earlier this month by the Federal Reserve. As Federal Reserve Chair Janet Yellen ponders what will happen in the markets when the Fed starts to eventually raise interest rates, she has to also worry about what will happen to the cash-strapped consumer who is barely hanging on and has no emergency funds to meet a job loss or hike in credit card interest payments.

RainyDayFund_WSOP

A Majority of Americans Do Not Have a Rainy Day Fund That Would Last 3 Months

The Fed study was conducted in September 2013 by the Fed’s Division of Consumer and Community Affairs. Its stated aim was to “capture a snapshot of the financial and economic well-being of U.S. households, as well as to monitor their recovery from the recent recession and identify any risk to their financial stability.”

The Fed didn’t receive welcome news. Continue reading

Charles Hugh Smith ~ The Housing Bubble’s Silver Lining

As rents climb, developers large and small take out their calculators and dreams of wealth blossom: but no, this is not bubble. C H Smith

CharlesHughSmithThe disastrous blowback from inflating housing bubbles is painfully obvious: as housing becomes unaffordable, households impoverish themselves to “get in now before it’s too late;” malinvestment (i.e. McMansions in the middle of nowhere) flourishes as housing becomes a speculative financial vehicle rather than shelter; retirement funds are sold designed-to-default mortgage-backed securities, and when the bubble finally pops, those lured into buying at the top are left underwater, owing more on their mortgage than their house is worth.

But there is one silver lining to housing bubbles: some of the money squandered in the speculative frenzy ends up rehabilitating old buildings or erecting new housing in useful locales.

Let’s not overstate this silver lining: a rational, productive set of financial policies would have directed capital into useful construction without the dubious aid of a speculative bubble. Every dollar wasted on a marginal-return housing investment (for example, a shoddy house with Chinese drywall that renders it cheaper to tear the house down than attempt to fix everything that’s wrong) is a dollar that could have gone into rehabbing a well-constructed building from a previous era or building shelter that will last 100 years with little maintenance. Continue reading

Pam Martens & Russ Martens ~ New York Fed’s Answer To Cartels Rigging Markets – Form Another Cartel

“The TMPG has been functioning for some time. Just when it came under the New York Fed’s sponsorship is unclear. Its current members include executives from JPMorgan Chase, Morgan Stanley, and Citigroup.” P Martens & R Martens

Trader on the Open Markets Trading Desk at the Federal Reserve Bank of New York Trader on the Open Markets Trading Desk at the Federal Reserve Bank of New York

Trader on the Open Markets Trading Desk at the Federal Reserve Bank of New York

According to the Oxford Dictionary, the word cartel can mean either businesses that seek to restrict competition or a coalition “intended to promote a mutual interest.” Under at least the second definition, the Federal Reserve Bank of New York, a key regulator of the biggest Wall Street banks’ holding companies, has been sponsoring (yes, sponsoring) a cartel for decades.

To grasp the sheer insanity of what the New York Fed is doing, imagine going to the Securities and Exchange Commission’s web site (another Wall Street regulator) and finding that it has loaned out its web site and its imprimatur to multiple Wall Street cartels writing their own rules of conduct. It sounds Orwellian doesn’t it.

And yet this is the web site address for the New York Fed-sponsored Foreign Exchange Committee: http://www.newyorkfed.org/fxc/ which has been operating for the past 36 years and whose three key members, JPMorgan Chase, Citigroup, and Morgan Stanley, are likely to be charged this fall, according to press reports, with involvement in rigging the very foreign exchange market they are engaged in writing best practices for under sponsorship by the New York Fed. Continue reading

Simon Black ~ Ever Wonder Why The Prostitutes And Bankers Share The Same Neighborhood?

“Putting cash in a bank practically GUARANTEES that you will lose money on an inflation-adjusted basis. Stocks are at precarious all-time highs. Bonds are at all-time highs. Many real estate markets are back in bubble territory. These people have destabilized nearly every major asset class in existence.” S Black

Banksters_Bail-In

Frankfurt, Germany ~ Sometimes I am convinced it was completely by design, and not a weird little coincidence, that one of Germany’s most sprawling red light districts is just steps away from the European Central Bank.

This fact becomes comically obvious right around happy hour… as self-congratulatory ECB economists and their bureaucratic bank underlings crowd the bars and cafes after work which are simultaneously frequented by pimps, thugs, and other assorted low-lifes.

One would be forgiven for legitimately asking the question: which of these professions has done more damage to humanity?

My [fiat] money’s on the bankers.

These are the same financial luminaries who, recently, crowded aboard the good idea bus and decided to take interest rates NEGATIVE.

Their logic was that prices aren’t rising enough. This was actually the headline this morning that ran across the Rai (Italian news) ticker while I was consuming some egg-like substance at the hotel breakfast buffet this morning in Rome. Continue reading

Bix Weir ~ Another 2008 Around the Corner [Video]

Financial writer and analyst Bix Weir says what is going on in Ferguson, Missouri, is more than just a police action gone deadly.  Weir says, “There is definitely discontent out there.  The press covers so many things up, and the government gives us so many lies on statistics, such as unemployment, about GDP, and you name it, they lie about it.

There is so much bubbling up under the surface, and I do think this is the beginning of something much bigger. . . .I see another 2008 coming right around the corner. . . . The majority of Americans are not doing well. . . .The 99% are saying something is wrong here.  Something is off, and as soon as there is another hiccup with the economy, with more bank fraud, you are going to see a big uprising throughout the United States.”  Continue reading

Pam Martens & Russ Martens ~ Senator Elizabeth Warren Versus Paul Krugman on Too Big to Fail

“The letter from Senator Warren and her colleagues together with Professor Kane’s testimony are like a fresh breeze and the first glimpse of sunshine after being trapped in an underground tunnel of darkness for six years.” – P Martens & R Martens

ElizabethWarrenTwo weeks ago, Paul Krugman used some expensive media real estate to write a propaganda piece on the unsupportable proposition that the Dodd-Frank financial reform legislation passed in 2010 is “a success story” and that its bank wind-down program known as Ordinary Liquidation Authority has put an end to “bailing out the bankers.”

Wall Street On Parade took Krugman to task over this fanciful ode to accomplishments by the President the day after his piece ran in the New York Times’ opinion pages and suggested he do proper research on this subject before opining in the future. That was the morning of August 5.

By late in the afternoon of August 5, Krugman had a reality smack-down on his Dodd-Frank success fairy tale by two Federal regulators. Every major media outlet was running with the news that eleven of the biggest banks in the country, including the mega Wall Street banks, had just had their wind-down plans (known as living wills) rejected by the Federal Reserve and FDIC for not being credible or rational. The eleven banks are: Bank of America, Bank of New York Mellon, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley, State Street and UBS. Continue reading

Pam Martens ~ 36,000 Madoff Victims Have Not Received A Dime In Restitution; 1,129 Fully Reimbursed

“When the highest law enforcement in the land quashes a subpoena from a Federal regulator while deferring felony prosecutions and settling on the cheap with a serial miscreant – leaving tens of thousands of Madoff victims destitute for six years – the public and defrauded investors around the world need answers.” – P Martens

bernieMadoffOn May 5, 2014, Irving Picard, the court-appointed trustee in charge of finding and distributing Madoff’s swindled funds to investors released this statement in a press release announcing the fourth interim distribution of funds to victims: “…1,129 accounts will be fully satisfied following the fourth interim distribution. All allowed claims totaling $925,000 or less will be fully satisfied after the distribution.”

Just eight days later, Richard Breeden, the Special Master that’s working on behalf of the U.S. Department of Justice to distribute a separate pool of funds to Madoff’s victims reported that more than 36,000 claimants have filed documents with his office indicating that they haven’t yet received a dime of restitution. Yes, 36,000 people from all over the globe.

That’s bad enough but the story goes downhill from there. Almost six years from the date that Bernard Madoff turned himself in as the largest Ponzi fraudster in the history of finance, the U.S. Department of Justice is still scratching its head over just how much money Madoff actually ripped off from investors and puzzling over how to divvy up its inadequate pot of money. Continue reading

Susan Duclos ~ Dr.Dan Schultz Interviews Karen Hudes – Constitution Not In Effect! [Audio]

August 18, 2014  ~ World Bank whistleblower Karen Hudes joins Counter Culture Radio host Dr. Dan Schultz, for a wide ranging interview, explaining the specifics of the deep-seated corruption of the banking cartels and what the globalists plans are as well what she and other whistleblowers have been doing to expose said corruption.

View video

From Syria to Ukraine to the MH17 flight being shot down, plans to start a nuclear war between world powers and the dangers inherent in exposing this blatant corruption are all discussed below. There is so much information provided in this interview that it is impossible to encompass it in a manner that will do this interview justice.

Karen also provides hope with her analysis of the situation, that the majority can overcome the systematic banker corruption, but as of right now The US Constitution is NOT in effect!!

SF Source AllNewsPipeline