Monday, May 21, 2012

Just So We're Clear

It is not often you stand witness a significant piece of history. I believe we are spectators right here and now to a monumental event in our country's history. It is the sum of many many parts too numerous to mention but you know them if you've been following events here.

I want to be upbeat, I want to be positive but I continue to look at facts that completely and utterly quash this position. I believe the fraud, the corruption are so endemic as to render our system almost beyond repair. I say this as I believe those in charge realize this quite clearly and are stealing anything and everything that is not nailed down as they realize the ship is sinking.

Check out this Bloomberg story detailing how the JPMorgan Risk Chief Said To Have Trading-Loss History.  Yes the financial terrorist in question, Irvin Goldman, risk chief at JPM was fired back in 2007 by Cantor Fitzgerald LP for money losing bets that resulted in regulatory sanctions at the firm. Read the Bloomberg piece as its an eye opening

This begs the question, so how, after pulling the stunt he pulled at Cantor, can this Goldman character find work again you must be asking, right? I mean, gotta think a loss like that would be a career finisher, right? Well, on Wall St. you'd be wrong because on Wall St. a move like that gets you noticed, it gets you a Tim Geithner-esque promotion. --Sidebar,  remember now, Tim Geithner was head of NY Fed which was charged with policing bank ops in its jurisdiction (Wall St.) when Bear and Lehman blew up to which instead of being fired and ridiculed as incompetent he was (in my opinion to keep his mouth shut) rewarded with a promotion, but I digress.-- Guess it doesn't hurt to pull a lucky sperm club, get out of jail free card out (have a brother-in-law pulling for you) when you need it.  I have not had the time to do a formal investigation but I would hazard a guess that were a doctoral student to do a paper looking deeply at all the financial terrorists who took part in blowing up Bear Stearns and Lehman Brothers, in peddling toxic paper that has infected pension portfolios across the globe that you'd find them still employed on Wall St..... just waiting to blow up.  

I made a plea sometime ago in the post Still Wondering Why I Rail on Ivy League MBA's? which you can take a minute to re-read if you like. Here is a quick snippet of what I wrote then:

"At what point are some adults (how about law enforcement for starters) going to start recognizing the lucky sperm club, trust fund holding, lvy League MBA carrying cockroaches designing these financial cocktails are terrorists and must be stopped.

These financial innovators are nothing more than financial terrorists planting explosives on America's corporate balance sheets. Remember this the next time some shallow, make-believe pundit, like Altucher did this morning, comes on CNBC and tells you corporate America's balance sheets are flush with cash.

Are you still wondering why I rail on these Ivy league MBA's running around like cockroach versions of Dr. Frankenstein?

Nothing has changed and I make the plea yet again here today. Trust and confidence in the system is absolutely paramount for the system to function. Trust that when fraud and malfeasance are occurring it will be prosecuted, the perpetrators brought to justice and punished accordingly, their ill-gotten gains disgorged. Without doing so you get a free-for-all, anything goes type atmosphere we are now all witness to.

I yet again, implore the widely viewed elders statesmen of corporate America, the ones invited on financial television to opine regularly. Men like T. Boone Pickens, Ken Langone, Steve Wynn, Wilbur Ross, the list goes on and on. Do you not see what is going on? Don't insult me and tell me you don't because even with my room temperature IQ I can see it. These people are literally destroying the confidence and trust in our financial system. I believe the very foundation that supports our financial system has been hijacked by these financial terrorists for their own personal benefit. Do you not realize there will come a point of no return? Do you not care?

We can take the system back from the crony capitalist thugs but it takes a huge order of onions to do so. It may also involve taking down men you consider your "friends", but are they really friends when they are destroying the capital markets system that has been in place so long. My personal opinion is the issue of 'friends' is the core issue as to why the Langones, Pickens, Rosses et al. refuse to acknowledge what is going on because so many of the perpetrators I am calling financial terrorists are their friends and close associates.

Thursday, May 17, 2012

#GoldmanSachs Fraud Much More Important than JPM losses.

I realize everyone is in a lather over the JP Morgan trading losses, which reports say are still rising, but I want to focus on a bigger issue which is contained in Matt Taibbi's article Accidently Released - and Incredibly Embarassing - Documents Show How Goldman et al Engaged in 'Naked Short Selling'.

Please read thru Matt's piece. You might finally start to understand why I rail on these people. Check out these gems from the piece:

“Fuck the compliance area – procedures, schmecedures,” chirps Peter Melz, former president of Merrill Lynch Professional Clearing Corp. (a.k.a. Merrill Pro), when a subordinate worries about the company failing to comply with the rules governing short sales.

 Lovely. Said it before and will say it again, the Wall St. temple is infested with maggots like this Melz.

We also find out here how Wall Street professionals manipulated public opinion by buying off and/or intimidating experts in their respective fields. In one email made public in this document, a lobbyist for SIFMA, the Securities Industry and Financial Markets Association, tells a Goldman executive how to engage an expert who otherwise would go work for “our more powerful enemies,” i.e. would work with Overstock on the company’s lawsuit."

 “He should be someone we can work with, especially if he sees that cooperation results in resources, both data and funding,” the lobbyist writes, “while resistance results in isolation.”

Harkens me back to uber imbecile and on the take Fredric Mishkin and his deal with the Icelandic Chamber of Commerce. Ah how nice. Yes I am so naive as to how things work. Well, rather than go into a diatribe on that subject I will for all simply leave the experts alone on the art of 'greasing the deal' and simply suggest look around at what we are reaping as a harvest. Look up Jefferson County for a primer.

just wait till we find out the arrangement Wall St. has had with the likes of ministry of propaganda outlets CNBC or Bloomberg. Of course you'd have to be a tin-foil-hat-wearing conspiracy theorist to suggest something as hair-brained as that, right? Moving right along:

Here, the plaintiff’s motion refers to an “exhibit 96,” which refers to “an email from [Goldman executive] John Masterson that sends nonpublic data concerning customer short positions in Overstock and four other hard-to-borrow stocks to Maverick Capital, a large hedge fund that sells stocks short.”

So in addition to buying Washington, owning the regulators, front-running clients, coppering their trades, selling toxic paper blah, blah blah we can now add revealing nonpublic customer position data to favored market participants to the list. Gotta give these thugs credit, they're thorough.

So we can wail and knash our teeth over the bailouts, about the pyschopaths this has created but that is only a symptom of the underlying problem. Think how you would gamble in Vegas were all your losses backstopped and you were re-supplied with fresh cash at all times and you have an idea as to how Goldman and Morgan operate. And yes, this is the raison d'etre for what is happening in commodities like oil etc..... taxpayer funded free money to gamble with.

For me the document dump by Goldman is the real issue. but It is more than a total disregard for the rule of law. It is a culture of lawlessness with a complete lack of enforcement of said laws with perks and cash to regulators and politicos. It is standard operating procedure on Wall St. and in many corporate boardrooms. The lack of 'consequences' for actions has led to a pandoras box of unintended ones.

Friday, May 11, 2012

World of Finance is A Facade.

Great interview you can see on CNBC entitled Grant Blasts Fed Again with Jim Grant editor of Grant's Interest Rate Observer. Pay attention to what he says people, he's spot on!

Wednesday, May 9, 2012

In France 49 is the Lucky Number

Interesting read today from Businessweek's Greg Viscusi and Mark Deen on Why France has so many 49-employee companies. I wonder how many focus groups, market studies, socio-economic spreadsheets it took (and paid for by French taxpayers) to come to the the number 49?

Check out some of these gems from the article or as I like to call them; yet more gifts of genius from the elite, went to the best schools, purported "smartest guys in the room" (aka trough feeders):

"according to the French labor code. Once a company has at least 50 employees inside France, management must create three worker councils, introduce profit sharing, and submit restructuring plans to the councils if the company decides to fire workers for economic reasons." 

or this one...
There are now 2.9 million people out of work in France, almost 10 percent of the workforce and the most in 12 years. “For the 100 employees we have in France, we have 10 employee representatives, for whom we have to organize weekly meetings even when there is nothing to discuss,”

Viscusi and Deen finish off the piece with this:

The bottom line: With 2.9 million people out of work—the worst joblessness in 12 years—France may need to overhaul its rigid labor laws.

Gee, ya think?
Too bad authors Viscusi and Deen cannot be more candid like saying:

The bottom line: with 2.9 million people out of work- the worst joblessness in 12 years-France needs to give its collective head a shake, purge these useless laws from its books, tell the lawyers and union lobbies who own politicians to stick their heads where the sun doesn't shine while at the same time turfing these genius- 'I know better' because I went to Insead-bureaucrats in Paris. Of course that would never get past the editor or the front door politically because we lack the required backbone period.

Monday, May 7, 2012

The Emperor is Naked: David Stockman

The cats over at the Gold Report have a great interview with David Stockman, which you can read here, a fellow I admire for his honesty and his ability to speak without a telepromter in front of him. Make sure you check out his investment model at the end of the interview. Well worth the time spent my friends.

Morning Read

Your daily dose of economic reading.

Friday, May 4, 2012

FLEECEEMOL is the Answer

FLEECE-EM-OL (avaritia maximus) is the only prescription medication clinically proven to treat Deficient Net Worth Disorder (DNWD). In all but the most severe cases (ie. Jon Corzine). I believe this new drug can really jump start our economy boosting consumer confidence.

Unlike Reachemol which treats DFD, Deficient Popularity Disorder, Fleeceemol will increase you net worth big time! So much so that people will not only like you they will grovel at your feet on major financial network television, instead of shunning you like an Old Testament leper. Yes all this with few side effects!

Now I had my doubts about Fleeceemol given its claims to:

Increase net worth
Boost bundling abilities to buy politicos and regulators
Become more attractive on the trophy wife circuit
Write financial policy
Win senatorial and gubernatorial elections
Spread belief you're doing God's work
Brainwash you that crony-capitalism is free market capitalism

Sure sounds good I thought. Then I worried about those dreadful side effects which include:

Trophy wife exit fees
Obsessive art collecting
Early onset of mid-life crises
Headaches associated with legions of grovelling yes men

For those unaware both Fleeceemol and Reachemol are fictitious drugs but I encourage big pharma to get on this wagon now!! Why work hard, why have an ethical standard, why run the risk of getting drummed out when overnight you can cook the books, hide the losses in SIV's or offshore entities, front run, obfuscate and outright lie all with one tiny little green pill?