Financial Crisis

[AlexLah]

Newsflash!

Goldman Sachs to start printing its own currency

New York--Today U.S. Treasury officials announced that Goldman Sachs will start printing its own currency to be called Goldman's Own Denomination or GOD for short.

Read the rest here: http://wakeupfromyourslumber.blogspot.com/...ng-its-own.html

[midas]

Now this is significant because the Almighty Obama has close

ties to this organisation

GOP Congressional Report Accuses ACORN of Political Corruption, Widespread Fraud

House Republicans issuing a report Thursday accusing ACORN of fraudulent activities and widespread corruption, concluding a criminal investigation into the advocacy group is needed

http://www.foxnews.com/politics/2009/07/22...despread-fraud/

[Abrak]

The Messiah (Ben the great) said this a while ago:

- In 2005 Bernanke said there was no housing bubble to bust. "[Housing] increases, he said, "largely reflect strong economic fundamentals," such as strong growth in jobs, incomes and the number of new households.

- Less than two years ago he said things were contained.

- In January 2008, he said housing would improve by the end of the year.

Do you still believe your hero Barak, Abrak?

Did you read the Spiegel article?

I am well aware of Bernanke's delusional rants about housing. Some of his comments were so stupid I do slightly wonder whether he believed them. For instance in reply to a reporter's comment that prices had gone up so much that many analysts believe that when the bubble burst it could cause a recession, Bernanke replied something along the lines of 'I dont accept this proposition, the US has never experienced a general fall in house prices'.

This statement is untrue (if you go back a reasonable period of time) but, more importantly, it isnt a credible argument for an intelligent person let alone an economist. So there is a side of me that maybe thinks he was just trying to prop up a highly leveraged position that he inherited.

Now Greenspan genuinely believed in property on many different levels as he explained in his work on MEW he published after he left office. He basically saw a structural shift away from rental saving to housing and mortgages. If you pay down a mortgage over 30 years and your house price increases in line with nominal GDP (Shiller) then you accumulate wealth and dont need to save. So he wasnt really worried by the fall in savings and the rise in debt.

Now economists dont like the idea of savings being replaced by housing wealth because savings fuel investment in productive assets and GDP while housing is a non-productive asset. Greenspan knew more than the economists though as he detailed at great length. Housing wealth is a productive asset because people dont let it just sit there. They remortgage and buy a bigger house, build a second home, refurnish or buy a bigger car. Anyways far from not contributing to growth it accounted for all of growth from 2000-2005. Greenspan also showed MEW GDP effects extending back to 1990. Economists were surprised by the size of MEW but not impressed (afterall it was mostly building & consumption with no multiplier). What shocked them and Greenspan totally fails to mention is the quid pro quo - to the extent the housing bubble has boosted growth, then the core underlying growth rate of the economy must have collapsed.

What am I gabbling on about? I am trying to say that Greenspan was the expert on property not Bernanke. But I agree that isnt an excuse. Bernanke's comments on property are so dumb, that anyone is right to question his judgment on anything and he clearly makes Ron Paul look credible. I would like to dream up a conspiracy theory whereby it is in his interests to appear stupid on TV but I just cant. The best I can do is that he got (according to Wikipedia 1590 out of 1600 in his SATs) so he is inherently weird. On that basis he must be pretty brilliant but it also appears he can be stupid over trivial matters (and possibly matters of the gravest importance)). I just prefer the weird geek with the idea that might work than the sleek exec (Krugman) who says there isnt a solution.

At the end of the day, I fully accept he says very stupid things, over various matters he is one of the most respected economists in the world. He definitely isnt stupid.

[flying]

http://www.msnbc.msn.com/id/32024567/ns/bu...cks_and_economy

WASHINGTON - Federal Reserve Chairman Ben Bernanke sought to assure Wall Street and Congress Tuesday that the Fed will be able to reel in its extraordinary economic stimulus and prevent a flare up of inflation when the recovery is more firmly rooted.

Bernanke, in prepared testimony before the House Financial Services Committee, also said any such steps will be far off in the future and that the central bank's focus remains "fostering economic recovery."

Far off in the future meaning when Larry Summers has this job & Bernanke is sipping Mai Tai's on a beach laughing.

[AlexLah]

Abrak I did not say he is stupid, he is just not so good in telling fairy tales (although a lot better than Geithner and Paulson).

[Naam]

why do i care at all?

Edited July 24, 2009 by Naam

[midas]

Abrak I did not say he is stupid, he is just not so good in telling fairy tales (although a lot better than Geithner and Paulson).

You are so much more " diplomatic " than me Alex...........

Brilliant economist or not ..........he is a lying scumbag just the same as the whole

pit of vipers that call themsleves the US Administration

[flying]

More on the high speed trading

Traders Profit With Computers Set at High Speed

http://www.nytimes.com/2009/07/24/business...tml?_r=1&hp

[midas]

More on the high speed trading

Traders Profit With Computers Set at High Speed

http://www.nytimes.com/2009/07/24/business...tml?_r=1&hp

This quote is really funny

" People want to know they have a legitimate shot at getting a fair deal. Otherwise, the markets lose their integrity.”

that happened a long time ago

[flying]

" People want to know they have a legitimate shot at getting a fair deal. Otherwise, the markets lose their integrity."

that happened a long time ago

I was never an expert but back in 2000 I did trade a ton.

It took its toll on my health literally.

But even then I was paying for the best real time screens & I knew I didn't stand a chance really. I knew they could move markets swoop down & take out stops.

One thing that befuddled me was seeing the sell marks line up & think they were not moving but suddenly the price would be dumping. I didn't realize that they had bottomless pockets. They would put 5-10k shares out to sell & I would think they were static but they were selling & being replenished so fast I thought it was the same just sitting.

I guess the screens I had were not all that Today there are probably so much better programs etc. But it made me realize that investing was already long gone in 2000. It is just gambling now...Being such & very much like any casino...If the gamblers just stay home the casinos...sharks etc...will all starve to death.

I wish all the normal folks would just pull out & stay out. Demand their 401k to be cashed & stashed....<deleted> It

Yeah most will say it was always that way & it probably was.

[AlexLah]

Abrak I did not say he is stupid, he is just not so good in telling fairy tales (although a lot better than Geithner and Paulson).

You are so much more " diplomatic " than me Alex...........

I have to practice as I will soon be diving into the corporate world again, har, har, har!

Machines trading or not there are still some very good performing stocks out there, huge gains and I am not talking about bank stuff.

For example:

Trial for New Lupus Treatment Is Called Promising

By ANDREW POLLACK

Published: July 20, 2009

The medicine, Benlysta, proved effective in a large trial, meaning it could become the first new treatment for the disease in more than 40 years.

Important news beginning of this year was published related to Human Genome drugs (Just Google for it). I noticed below stock was trading at around 0.80 at that time.

For example: Human Genome Sciences, Inc.

52-Wk Low 0.45 3/11/09

52-Wk High 14.97 7/21/09

But hey, I am not a trader/investor I just look at trends and developments and see that this type of science is getting more important also with the whole focus on health care stuff.

Some medical news related you can find here: http://www.ama-assn.org

It is Friday!!!!!!!!

[BlackJack]

What a nice way to tell the people to shove OFF!!!

United States Securities and Exchange Commission

Washington, D.C. 20549

July 20, 2009

Chris Powell, Secretary/Treasurer

Gold Anti-Trust Action Committee Inc.

7 Villa Louisa Road

Manchester, Connecticut 06043-7541

Dear Mr. Powell:

Thank you for your letter of July 7, 2009, to Chairman Mary Schapiro of the U.S. Securities and Exchange Commission. Your letter has been referred to the SEC's Office of Investor Education and Advocacy for a response.

We are taking your complaint regarding Goldman Sachs and its proprietary software that may be used to manipulate the markets very seriously, and have referred it to the appropriate people within the SEC.

Please understand that the SEC conducts its investigations on a confidential basis and neither confirms nor denies the existence of an investigation unless we bring charges against someone involved. We do this to protect the integrity and effectiveness of our investigative process and to preserve the privacy of the individuals and entities involved. As a result, we will not be able to provide you with any future updates on the status of your complaint or of any pending SEC investigation.

WHats the odds of taking the fine GS to court????

[flying]

Funny Video

Ratigan, Spitzer And Toure Clarify The Fed's Obsession With Secrecy

http://zerohedge.blogspot.com/2009/07/rati...arify-feds.html

Edited July 24, 2009 by flying

[cloudhopper]

An analysis of the US economy and stock market

http://zerohedge.blogspot.com/2009/07/spro...omy-stupid.html

[AlexLah]

What wealth build up?

I suggest to have a look at this: http://www.youtube.com/user/khanacademy?bl...1/0/8IR5LefXVPY

Again the excellent Khan academy........

[midas]

An analysis of the US economy and stock market

http://zerohedge.blogspot.com/2009/07/spro...omy-stupid.html

reminds you why the continued belief in those " green shoots " is so important

[AlexLah]

No worries, watch this Dutch documentary that was aired in 2005 (has English subs).

It could happen................

[Naam]

i am missing interesting youtube clips concerning the financial crisis, the apocalyptic riders, the worldwide riots, the hyperinflation, gold $50k per microgramme and the fools Bernanke, Geithner, O'Bama, Brown and Darling. what happened? are these clips posted in another thread?

waiting patiently for enlightenment while counting the profits made DUE TO the crisis

[Naam]

i am also missing badly Bingo Bonkers and the bearish Harmonica player. where the EFF else can i get leads what assets too short?

[midas]

drip..........drip.............drip

Independent poll reveals fresh pessimism at prospects for economy

leaving a question mark over Mr Darling's Budget forecasts for economic growth.

http://www.independent.co.uk/news/uk/home-...on-1762047.html

[flying]

i am missing interesting youtube clips concerning the financial crisis, the apocalyptic riders, the worldwide riots, the hyperinflation, gold $50k per microgramme and the fools Bernanke, Geithner, O'Bama, Brown and Darling. what happened? are these clips posted in another thread?

waiting patiently for enlightenment while counting the profits made DUE TO the crisis

Yeah well ya know its getting passe already.

Sheeple have become even more numb as things such as 7 more banks went under this past Friday & none blinks anymore.

The tally is now at 64 banks closed this year & we are just over half way through the year.

On the Audit the FED side there seems to be headway being made but by the time they get the permission<sic> to audit..... the books will be thoroughly cooked eh? Here is a nice little 8 minutes with recent players. Interesting mix of Dems & Repubs now.

Then of course as you know they are pumping up a few other events here... but as I said all passe these days. You should see a letter I got from my congressman this week. Pretty dang scary how out of touch they are. His exact words were....

The Waxman-Markey bill is not perfect. In fact, I attempted to change the bill to bring it more in line with our state initiatives. As the bill proceeds through the legislative process, you can be assured I will continue to shape this measure into a more workable system.

Yeah I bet....So he votes a bill that is not perfect in but will fix it later.

Oh this was great too............

The Congressional Budget Office estimated the net annual economy-wide cost of the program in 2020 would be about $175 per household per year.

You gotta love how he said by the year 2020 Lets see how much our share is for these next 11 years

Of course we will be well screwed long before that day arrives. I asked what happened with the bail out bill. When we all wrote & said please vote NO

I said it seems they listened & voted NO but then were scared into changing their votes to Yes. When Bush & Obama said you must... I asked since they obviously did not come back & get our opinion if we did in fact have no representation? Since there was no way they voted NO & then change to Yes in that amount of time with our input. So that being the case will the No taxation without representation be in effect shortly?

I have not gotten a response to that one.....Not that I expect one

But again as I said getting pretty passe...Dont know how others feel but I'm pretty well done saying much... it is no wonder sheep get F*#^$!.

As for profits......Yes of course much to be made by the same folks who got us here in the first place & the little sucker fish that live off that....

Edited July 27, 2009 by flying

[midas]

You gotta love how he said by the year 2020 Lets see how much our share is for these next 11 years

Of course we will be well screwed long before that day arrives. I asked what happened with the bail out bill. When we all wrote & said please vote NO

I said it seems they listened & voted NO but then were scared into changing their votes to Yes. When Bush & Obama said you must... I asked since they obviously did not come back & get our opinion if we did in fact have no representation? Since there was no way they voted NO & then change to Yes in that amount of time with our input. So that being the case will the No taxation without representation be in effect shortly?

I have not gotten a response to that one.....Not that I expect one

But again as I said getting pretty passe...Dont know how others feel but I'm pretty well done saying much... it is no wonder sheep get F*#^$!.

As for profits......Yes of course much to be made by the same folks who got us here in the first place & the little sucker fish that live off that....

Flying

in this day and age there is no excuse not to have regular referendums via electronic means on major issues.

The Swiss have been doing it for a long time.

No justification any longer for the politicians to keep making these very self-interested decisions " on behalf of " the ones who electd them

and are paying their bl**dy salaries

http://timesizing.com/1elecdem.htm

[flying]

Flying

in this day and age there is no excuse not to have regular referendums via electronic means on major issues.

The Swiss have been doing it for a long time.

No justification any longer for the politicians to keep making these very self-interested decisions " on behalf of " the ones who electd them

and are paying their bl**dy salaries

http://timesizing.com/1elecdem.htm

Agreed but since we do not it is proof that we were not represented in the Bail out vote. There is no way they can change their No votes to Yes votes in that amount of time since we do lack the electronic system. The fact they voted NO shows what their constituents wanted.

Yet they were herded into a Yes bail them vote. So it is clear we have NO representation & as such should also have no taxation. Let them Bail that....

Edited July 27, 2009 by flying

[midas]

Yet they were herded into a Yes bail them vote. So it is clear we have NO representation & as such should also have no taxation. Let them Bail that....

OK GO ON THEN DO IT......DO IT !!!

[flying]

OK GO ON THEN DO IT......DO IT !!!

Yes

[Abrak]

On the Audit the FED side there seems to be headway being made but by the time they get the permission<sic> to audit..... the books will be thoroughly cooked eh? Here is a nice little 8 minutes with recent players. Interesting mix of Dems & Repubs now.

The Fed publishes its balance sheet every month but the reason it needs a decent audit is this. Its most recent balance sheet as of July 23rd shows that it has acquired assets (or increased assets) by US$1,140bn over the past year and that its liabilities have increased US$1,130bn. It has booked a US$10bn profit. Now that just doesnt sound right. And I guess (as someone pointed out earlier) the contingents will be outstanding.

Of course if it is audited, it will be declared insolvent (or maybe not if it literally has the ability to create money). Its capital is only US$50bn. But really...if it works out that it has spent US$100bn bailing the banks should anyone complain?

As I see it banking supervision control and subsidy should be separate from the Fed. At one stage, monetary policy was controlled through the banking system and its reserve requirement but that is no longer the case. Nobody appointed Bernanke head of the Fed because they hoped he knew a lot about banks.

However, there is no point in auditing the Fed if you dont audit TARP. Essentially since the last quarter of last year the cost of bailing out the banks has been taken off the balance sheet of the Fed. As far as I know there is absolutely no record of how much of the US$700bn set aside for TARP has been spent (although someone has talked about US$23trn). The CBO estimated that US$254bn had been spent at the year end with a recovery rate of 75%. We know the upside bar isnt set very high.

http://www.citizeneconomists.com/blogs/200...-for-taxpayers/

[midas]

In USA, the SEC missed Bernie Madoff................

Now in UK we see this.............as fraud seems to be a permanent feature of our " new society "

its obvious the " watchdogs " need better training

Consumer watchdog 'falls victim to £250,000 fraud'

Embarrassment for OFT after its annual report reveals alleged fraud and compensation payment to staff member

http://www.guardian.co.uk/money/2009/jul/2...watchdog-victim

Edited July 28, 2009 by midas

[Abrak]

One thing that has been puzzling me about the US economy is that there appears to be some inconsistency in some of the US economic data. In particular, consumption (60-70% of total income) appears to be rising (or at least not falling) while at the same time both unemployment is rising and so are savings rates.

I just received this factoid (no idea whether it is true or not) which would explain this discrepancy...'Watch what the consumer does now that the fiscal stimulus is over for the time being. Year-to-date, total personal disposable income has risen at a 10.8% annual rate due to Uncle Sam's generosity; however, wages and salaries (60% of the income pie) have declined at a record 3.1% pace.'

So the fiscal stimulus could have allowed the consumer to increase its saving ratio from around 0% to 8% and still increase spending. If this is the case then the consumption numbers probably indicate delayed decline rather than sustained recovery.

[midas]

anted.

Yet they were herded into a Yes bail them vote. So it is clear we have NO representation & as such should also have no taxation. Let them Bail that....

Flying...you mean like this guy.......?

" The fat pig pictured here is the Chairman of the House Ways and Means Comittee and thus responsible for drafting our tax code. So when he calls for a higher tax rate, he’s got more clout than that idiot-kin Rep. Conyers and his own demand that whites pay slavery reperations.

Mr. Rangel soon admitted having failed to report rental income of $75,000 over the years . First he blamed his wife for the oversight because he said she was supposed to be managing the property. Then he blamed the language barrier. “Every time I thought I was getting somewhere, they’d start speaking Spanish,” Mr. Rangel explained.

http://christopherfountain.wordpress.com/2...-taxes-not-him/

[flying]

Flying...you mean like this guy.......?

" The fat pig pictured here is the Chairman of the House Ways and Means Comittee

Mr. Rangel soon admitted having failed to report rental income of $75,000 over the years .

Nah that is just the standard these days.

Do not forget our very own Treasury Secretary belongs to the same club.

But soon more & more will ask questions more along these lines & in these tones.

Then the asking will stop

I am not saying the gentleman from Florida has it all right but his questions are basically hitting the nail

Lastly isn't it nice to know there is such a thing as a ethics waiver? REALLY !!!!

Edited July 28, 2009 by flying