Thursday, October 22, 2009

Naked Shortselling/financial terrorism- the Clue that solves the murder of Bear Stearns

Matt Taibbi wrote another masterpiece called WALL STREET'S NAKED SWINDLE elaborating on the crime that was executed by placing naked short sales against Bear Stearns.
Here's a quick lesson on short selling and naked short selling. Short selling is borrowing shares (often held on margin by another investor who is long that same position), then selling them in the market at a high price and buying them back at a low price.

Naked short selling is really selling short without borrowing these shares then buying them back. It's illegal because obviously there are no shares to borrow. But Regulation Sho allowed this to happen for the market makers and of course the SEC tbrew some loopholes in there to enable somebody to make naked short sales against Bear Stearns, forcing the price of Bear Stearns stocks way down.

I believe the SEC (not Congress) comes up with it's own legislation.

SEC Chairman Cox cited that the collapse of Bear Stearns was due to a "crisis confidence" after the SEC conciously overlooked the naked short selling. The "crisis confidence" sounds too much like Carter's malaise speech.

Bear Stearns did not die of a "Confidence Crisis", it was murdered by naked short selling of somebody who wanted it to fail. There are way too many interesting connections involved with this crime.

The aforementioned article notes a suspicious meeting between the big wigs at the NY Federal Reserve with these Wall STreet big wigs including Rubin (representing Citigroup) excluding Bear Stearn reps...happened on Mar 11. Both Geithner and Bernanke were employed with the NY Federal Reserve at the time. Bear Stearns collapsed on March 16th.

Let's the Alan Schwartz connection. Some how he became sole president and COO of Bear Stearns after Warren Spector was forced to resign. He took over the when the stock was trading at $75/share and after it's merger with JP Morgan the stock declined to $5/share. This alone is a sketchy affair.

Per "Bear Stearns" on wikipedia, it was Treasury secretary Paulson and Bernanke who told Schwartz to sell JPM on Mar 16, 2008 stating that Bear's bankruptcy would cause massive economic problems and sell offs.

"Bear Stearns' liquidity pool started at $18.1 billion on March 10 and then plummeted to $2 billion on March 13."

After Schwartz sold BSC to JP Morgan, he was later confronted by an angry Sr. Trader at the company gym. The information about Alan Schwartz I got was under his name on Wikipedia.

Here's some trivia:György Schwartz is George Soros' real name. Is there any relation between George and Alan Schwartz per chance? Do they know eachother? Blood relatives? Relatives by marraige? Did Alan Schwartz oversee the company just to make sure it crumbled? I'm rushing to conclusions, however without a real investigation we have no story.

Beginning during the Clinton administration, every piece of legislation that should've prevented the greatest financial scandal in the history of the world was altered with "loopholes" so that it was enabled.

Evidence#1: the Commodities Futures Modernization Act allowed the subprime derivatives to be "regulated" by the Commodities Futures Trading Commission- another useless bureacracy that is not the SEC. Republicans Gramm, Leach and Bliley wrote this mess up. This happened at the same time when Clinton wrote NAFTA with China. The subprime market, or "housing" was the economy. The subprime credit was the "money supply" that replaced cash that was going disappearing to China (and other countries) in a trade deficit.

Evidence#2: Regulation Sho enacted too conveniently in 2005 created loopholes that enabled traders to make naked short sales against Bear Stearns.

Evidence#3: Bernanke lowered interest rates in 2004 when the economy looked good ($14 trillion GDP) to push the sale of ARM loans. When the economy is good, the Federal Reserve traditionally raises the Federal Reserve Rate to prevent inflation and lowers inflation (cheaper credit) to stimulate the economy. Lenders got their financing inventory by selling subprime derivatives to investors.

Evidence#4: Robert Rubin, Clinton's former Treasury Secretary Opposed regulation of credit swaps; fought to overturn Glass-Steagall Act, leading to creation of Citigroup, where he later made $115 million

Evidence#5: The Commodities Futures Trading Commission overlooked counterfeit subprime assets (that taxpaers were forced to give value to, to bail the banks out).

Yes they have probably taken bribes from lobbyists, including banks to write these loopholes in. Rubin made money from his crimes in direct investments. He also went to work for Citigroup. Where does his loyalty lie?

Not one CEO or individual involved with this mess was investigated, put on trial or thrown in jail for fraud, conspiracy and grand larsony (theft-heist-mobbing-robbery). Yet the Bernie Madoffs, Ken Lays, Raj Rajaratnam and others are busted for insider trading in high profile crimes. Yet Sandy Weill, Phi Gramm, Joe Cassano, Robert Rubin, Ben Bernanke, Alan Greenspan, Jimmy Cayne, Chris Cox, Angelo Mozilo, John Thain, Dick Fuld, Ken Lewis, Lloyd Blankfein and others have not been tried for this unspeakable act. The unsecured subprime derivatives and naked short selling (without delivering the stocks) is counterfeit. It's fraud. And this fraud happened in large quantites. Yet no news of a trial.

Infact, Gramm is a VP at UBS AG in the investment division and McCain's economic advisor during the campaign. And Obama turned to Rubin for advice on the subprime collapse.

These officials are in bed with the banks. Many of these people need to be in prison.

Here is more incriminating evidence. Former Treasury Secretary (who served under Ronald Reagan) Dr. Paul Craig Roberts tells Max Keiser that the Treasury Secretary works for the banks.
Chances are that he might be telling the truth. Isn't the TS supposed to take orders from the COC on behalf of the American people? Bernanke lowered interest rates to help lenders push ARM loans in 2004. Who does Bernanke really work for as Federal Reserve Chairman? And why are taxpayers forced to eat losses through Madison Lane LLC?

Here is another question about the lenders who sold subprimes to increase financing activity for these ARM loans;
-the value of the USD dropped below the Canadian Dollar in 2007
-job/population growth dropped. This was bush's "jobless recovery"
-unemployment triggered foreclosures before the subprime collapse happened.

Why were they leaving themselves exposed by selling subprime assets that were not secured? Who came up with the business model that you increase financing inventory backed by counterfeit assets in an economic downturn? How did the Case schilling index determine that we had a "great economy" when the cost of living was over 180 for most of the country? (the cost of living index includes the price of real estate- a fair price is 100).

Now we know why the naked short selling of this incident is a major clue in the greatest financial scandal in the history of the world.

Electric Run on the Banks-According to Rep Paul Kanjorski @ 2:21

Here was a comment made on the video:???"
Please note: Kanjorski had the briefing with Bernanke and Paulson on "15th of September". The event itself, the landslide electronic cash draw, happened on "Thursday"- meaning the preceding Thursday no doubt.
Thus the date and time when those 550 billion $ were being electronically drawn out was Thursday, Sept. 11th 2008, at 11.00 o´clock in the morning.
This is the 7th anniversary of the Terror attacks, to the minute."

There is a paper trail for this which isn't disclosed to the public. In finance, there's a record for everything after the Patriot Act was signed into law. The HUD database knows your occupation, the type of loan you financed your mortgage with, whether or not it was your primary/secondary occupation, etc. The brokerages need the same information that's on your driver's license to invest for some reason- this is especially true if you're holding a tax deferred retirement account at a trust firm/brokerage. The people who trade with subprime assets may not be as transparent, but somebody has access to this information.

What's even more frightening, is that now China has us by the balls with their derivative default stance. And Geithner told the American people to watch our money habits. Gees Geithner, it was Goldman Sachs who were trading bubble gum wrappers. Many of us don't really have money to manage.

We have bad blood running our country with antagonism, division, a bad economy & propoganda.

Per George Carlin,
""They don't want ppl smart enough
to figure out how bad they're getting fucked by a system that threw them overboard 30 yrs ago. They want obedient workers 2 passively accept shittier jobs...REDUCED benefits, and VANISHING PENSION that disappears the minute you go to collect it.
AND NOW, they're coming for your social security to give to their criminal friends on Wall Street. And, you know something, THEY'LL GET IT! ~G Carlin"

Wednesday, October 21, 2009

What the heck is our country going through?

So here's what's going on in the world. Korea's WON is up, China's economy is up 8.9%, a bunch of insiders got busted by the SEC, Bernanke is calling the trade deficit a problem, bank CEO's are getting record breaking bonuses, money is almost free and gas prices are on the rise. The usual.

Basically, we're experiencing a bunch of melodrama in the news while the economy takes a turn for the worst.

But somebody is having a hissyfit. Either it's Czar Obama or Soros, it's too hard to tell. Typically I avoid politics, because much of it is theatre. But what is Obama's problem? He's running after some Cophenhagen Treaty, tossing OUR taxpayer money at 3rd world countries, the MSM is aggressively attacking opposition and the White House officially puts Fox News on their "enemies" list. Here's the Fox coverage of it

Meanwhile Obamadrama is having a qualm with Army Commmander McChrystal over troops in Afghanistan,

What is with all of this melodrama? What president in the history of mankind stirs melodrama with his own people? Good grief.

Obama, America has two seperate parties in order to perform checks and balances for the American people. Well when they're not too busy being bribed by special interest and remember who the government collected $1.34 trillion worth of income taxes from. Republicans, by it's initial purpose promotes individual liberties, vs. collectivism. That's who we are, that's the reason why we exist and that's what we do.

Suffering opposition is called performing checks and balances. Unfortunately our Congress has no real republicans - just rinos. Today's republicans are really a figment of Obama's imagination.

Infact, I can argue that Bill Clinton is a bigger Republican than Snowe is, and he's kind enough to just call himself a democrat- just to spare us of suffering yet another RINO.

Back to the point. Suffering opposition is a part of the President's job. If Obama didn't want the job, why did he impose such an insufferable campaign for 2 long years to get the job in the first place?

This is one of the main reasons why I personally have an issue with overcompulsively campaigning, nasty tempered Soros. How much propoganda can be considered overkill? Does overbearing mean anything to him?

If Obama wanted the job, why is he whining about it? If he can't take the heat, get out of the kitchen. If he can't handle a viewpoint that varies from his own, he can't handle the job. We want our economy in better health, we want a secure country and one thats' managed properly. Not a Jerry Springer style entertainment from the White House. I personally regard Obama as a low class individual that lacks any set of ethics, morals and maybe competancy to carry out his duties.

And I greatly hope and pray that this drama queen steps down before the end of this year.

Tuesday, October 20, 2009

Keynes and Trade deficit

I've been bringing up the trade deficit as the main cause of the bad economy. It has taken money(preinterest/preinflation money) out of the supply and out of circulation .

Keynes said much about interest rates, but nothing on taxes during a time of deficits- or a "shortage of money"; which can't be adequately replaced by credit.

See Pg. 196-217.

Underneath the Old School English lies Keynes' stratgies, one involving a combined currency to fix the problem-which didn't fly over well with today's economists.

I'm bringing this up because too many Keynesian hypsters (who never read his writings) parrot the phrase too conveniently erroneously as if the Laffer strategy was the entire scope of Keynesian economics.

I like Keynes, I like his style. I have a problem with the way his methods are taught in univerities.

They teach Keynesians as an absolute way of thinking, not as the strategy that it is. The University professors teach only small parts of Keynesian as a major topic without mentioning that Keynes is an entire complex set of strategies built generally around Adam Smith's Model of the Invisible Hand.

This is the way I was taught, and it's probably cause for the masses in the business world to not question the media and their politicians on why a strategy is being used to "stimulate the economy".

Like mentioned before, Keynes himself gravely addressed the issue of trade deficit. Never did he say "tax the people" during this time of wealth depletion from the middle class as Bartlett may lead you to believe. CNN is not a trustworthy site for journalism unless you can calm your stomach during intense vertigo. The context contains way too much spin it's pointless for the articles to exist in the first place.

Keynes never said "create inflation and an unsecured credit market as the new currency- and ignore the trade deficit". The Obama Dream Team should take notes.

If for anything, not to treat us out here as if we were born yesterday. Americans are not "dumb". We're terribly misinformed.

Stick with fundamental education before you read the news. And never be intimidated or afraid to question your sources. FUD=fear uncertainty and doubt is a too common tactic to cause oppostion/competition to question the legitimacy of their statements.
It's only a tactic, the average person may prove to be smarter than they're made to feel about themselves.

Wednesday, October 14, 2009

The Dow rallied over 10,000 points today. Where did our purchasing power go?

Today's 10000 points on the Dow = 7700 points on the Dow in 1999.
There was a 25% decrease in the value of the dollar in the last 10 years.

In 1999, the Dow was at 9500-11500 in 1999 dollars.

In 1999 dollars, we're still down 2000 points.

Today's gas=$3.00/gallon.
In 1999, that same gallon would be adjusted to appx. $2.25/gallon.

Back in 1999, each gallon of gas was $1.65/gallon after a steep hike in prices in California.

We still haven't touched on the cost of living index, deficits, tax hikes, unemployment epidemic and employment/population growth yet.

The sick part is that your children will be paying for this rally.

Tuesday, October 13, 2009

PBR for Soros, it's Pappa's Feeding Time; it was about oil not the environment

Remember our dear friend George Soros? The guy who paid the MSM to pimp Obama? Well, it's payback time!

Obama is having the US Import Export Bank loan a bunch of dough to Petrobras-OFFSHORE DRILLING in Brazil. Soros is the beneficiary. The libs say that this is not tax money, they even created a factcheck page about it. The Import/Export Bank doesn't make it clear where they get their financing inventory from.

Obama is loaning them money to drill offshore so they can sell oil to us! Instead of us drilling for our own oil.

So how does any one offshoring oil company even reflect a stock decline when both China & India are both in the market for oil? Soros closed and reopened his position in Petrobras in August.

Soros blames Ethanol taxes from both the US and Europe. Um, whatever happened to drilling in Alaska?

What happened to the drilling in Utah?

The Department of the Interior has frozen oil and gas development on 60 of 77 contested drilling sites in Utah, saying the process of leasing the land was rushed and badly flawed.

That would've been great for the US Economy. The Alaskan Wilderness League and Natural Resources Defense Council are both non-profits! Is anybody suprised?

They owe a big debt to Sugar Daddy for getting Obama into office. Mind you, this has nothing to do with helping the U.S. Economy, helping the \the US Dollar get it's value back, nor does this help the American unemployment rate or the American citizens.

Now Brazil gets the Olympics & their economy is being hyped (pump and dump for Soros!).

Remember, Soros also hangs out with Russia (see Open Society Institute), but the liberals aren't saying one thing about them drilling offshore.

Brazil and Russia are a part of BRIC (Brazil, Russia, India and China).

Isn't it funny how politics just seems like really bad theatre at this point?

BTW, China's auto sales are up 78% and China signs a trade pact with Russia.

POP! Goes the Greenback-Intentional? BRIC and Soros may know.

The dollar has been on the decline since Clinton left office with a trade deficit; mostly due to our trade with China. The value of the US Dollar somehow became valued lower than the Canadian dollar in 2007, right before the subprime collapse.

So Obama came into office and Zollick, the World Bank President is questioning whether or not to keep it as a reserve currency.

So we are in a dangerous position here. We are in a weakened position; China can easily impose financial warfare against us if they wish at this point. Shall we look at how they're dealing with questionable oil trades?

Just this September, China has threatened a derivative default.

BEIJING, Sept 29 (Reuters) - A group of Chinese state firms, with the backing from the state assets watchdog, have launched a contract war against their foreign banks, threatening not to pay out loss-making derivatives deals they claim were unfair.
Arguing that they were mis-sold risky and unnecessary oil options, China State-owned Assets Supervision and Administration (SASAC) this month took the unprecedented step of warning banks that state corporations could default or sue, appearing to give Beijing's seal of approval to tearing up derivative deals worth an estimated several billion dollars to the banks.

But as I mentioned before, China buys US Treasuries to keep the US Dollar propped above the Yuan in order to keep the their exports cheap. Ron Kirk has been fabulous in addressing the WTO diplomatically about China's trade war against the U.S. Although they grossly understate the trade surplus given to them by the U.S.

Defaulting on our debt to China isn't going to be pretty.

So how does Obama "fix the problem?" By spending more and...

"President Barack Obama has increased U.S. marketable debt to a record as he borrows to reignite growth in the world’s biggest economy. That’s boosted speculation increased money supply will debase the currency and spur inflation."

So what is "record"?

On October 8th, 2009,
"President Barack Obama increased the nation’s marketable debt to an unprecedented $7.1 trillion as the government borrows to revive growth. Goldman Sachs Group Inc. predicts the U.S. will sell about $2.9 trillion of debt in the two years ending next September."

Don't worry. Asia stepped in to save the day, or China's hide.

"Asian central banks jumped in to prop up the dollar on Thursday as it slumped to a 14-month low against leading currencies."

Now Bernanke begins his case for the US Dollar, claiming that a world reserve currency will weaken the US Dollar.

Now wait a second!!!

On June 3rd, 2009,

"Federal Reserve Chairman Ben Bernanke said on Wednesday the U.S. dollar did not face a near-term risk of losing its reserve currency status and that ensuring a strong U.S. economy was the best way to keep the dollar strong."

Asia has officially done more than Bernanke and the Obama Administration combined to keep the US Dollar afloat.

So what are the other problems with a weakened dollar? Inflation? What about increased oil prices? OPEC will push for a world reserve currency that they can price oil in, or they can price oil in Euros or even Yen if they please.

But then again, Obama's keeping the oil production to foreign sources, not local ones. Ask Brazil.

Now remember, Soros bought Obama's presidency. He profitted from the crash of the British Pound and the Thai currency-the bhat.

He paid off 527's through the Democracy Alliance since 2004 and profitted from Halliburton only because he knew exactly when Media Matters would stop rallying against them. Mind you, this is a man who claims to hate Israel. He obviously creates political melodrama for his own financial gain. It seems like Soros is getting what he wants from the decline of our currency.

He has a friend named Jim Rogers who used to work with him at Quantum Funds. Jim Rogers endorsed Ron Paul during the 08 campaign. Ron Paul supporters have been shilling gold since the 08 campaigns, if not before.

One can say that BRIC intentionally pushed the US down. Soros has his filthy hands in Brazil and his Open Society Institute all over Russia and Eastern Europe.
But lest, one man couldn't do it all by himself.

A weaker dollar promotes exports, and the WTO hasn't been too great about enforcing trade war laws on China. Lets not forget to mention the illegal immigration and drug wars that send many billions of US Dollars out of circulation in our economy.

It's Papa's Feeding Time, but Pappa couldn't do with without the corruption in the previous two administrations and utter incompetancy and garbage that is our Congress.

We have to fix this. We have to vote out every crook in our government or have them forced out. This problem was created within.