Wednesday, June 27, 2012

Criminal Syndicates, Nothing More.

Was sitting down last night after playing in a charity golf tournament, reflecting on whether the title of my post yesterday Global Cess Pool of Serial Liars & Banking Stooges. Kept thinking it might have been a little too harsh, that not everyone in the industry is like that. For a moment, I considered penning a little pick me up piece offering the bright side to such filth.

Then I awoke to the Barclays news today. For those unaware, Barclays was charged and has now settled (of course neither admitting nor denying wrongdoing right?) with the CFTC that it manipulated and made false reports related to interbank lending rates LIBOR. For those interested in some of the details on these thugs, you can read the CFTC report here.

Here is a couple of snippets from the report:


"Barclays’ Unlawful Conduct to Benefit Derivatives Trading Positions"

Now that's nice.


"Barclays’ Unlawful Conduct at the Direction of Senior Management"

  
Really, at the direction of senior management huh? And their punishment?

"Barclays said that Chief Executive Bob Diamond and three other top executives—Chris Lucas, Jerry del Missier and Rich Ricci—will forgo their annual bonuses for 2012." 

 Give up their bonus, why thats heresay. I can only imagine how that 4th marriage trophy wife will react to that development.

Regarding these thugs and their actions here's what CEO Bob Diamond had to say;

"Nothing is more important to me than having a strong culture at Barclays,"


How lovely. Strong culture huh Bob, if you mean culture of criminality then you're spot on. Check out the Barclay's mission statement from their web site.

Our Framework, code and rules

“Good corporate governance practice is an important ingredient in creating and sustaining shareholder value, and ensuring that behaviour is ethical, legal and transparent.”
Barclays Chairman Marcus Agius.


What stands out to me here is I am thoroughly shocked that Marcus Agius doesn't have the title Sir before his name. Hope this episode doesn't affect his ability to secure his place among the nobility. (Marcus make sure your grease check doesn't bounce as that will surely put the kibosh on your knighthood.

As a result of all this, Barclays was fined $160million by the Dept. of Justice $160 million, $200 million by the CFTC,  and £59.5 million ($93.08 million) by the FSA. Anyone care to guess what this amount represents in relation to the profits garnered by Barclays from the scheme? What a sad joke this all is. Actually this whole looting and pillaging shtick is getting old and tired. Even the Attila and his Huns must have gotten a little bored of plundering everything they encountered. These entities are criminal syndicates, nothing more, posing far greater threat than any mobster or drug lord. Until there are consequences commensurate with the sins this plot of lawlessness will play out over and over again.

Monday, June 25, 2012

Global Cess Pool of Serial Liars & Banking Stooges

 In a remake of an Abbott and Costello movie, Wednesday last week you had Spanish Finance Minister Cristobal Montoro "saying Spain won't need assistance "because it does not need to be rescued". Today you get Economy Minister Luis de Guindos on bended knee asking for a bailout. But wait, it gets better. According to Spanish Foreign Minister Jose Manuel Garcia-Margallo:

"The question of whether the money will go directly to the banks or to the state is still open," 

Re-read that line again. I'll wait for you.

Lovely, send the money directly to the financial terrorists who created the mess. Banker stooge extraordinaire Garcia-Margallo indicated:

"Spain would seek the longest period possible for repayment and the lowest interest rate".

Really now. Nice move. Thy master commands and thy errand boy responds. Pathetic.

Remember when Portugal didn't need a bailout and PM Socrates denied over and over again they didn't until finally one day he did.

Or how about Luxembourg PM Jean-Claude Juncker's famous line;

 "When it becomes serious, you have to lie," 

Sure you do. So who after all this bullS%^# who would believe an assembled cast of characters like this, yet alone trade on anything they say? Why, the products of prestigious MBA schools the world over that's who course! Yes that smart money, 2+2=6 crowd that brought you Enron, MCI Worldcom, repo 105. SIV's (structured investment vehicles) toxic, Liar/NINJA, roboclosures, heck the list is endless. loans that not only were foisted upon pension plans in every corner of the planet but were, still love this one, re-hypothecated over and over again. If it all weren't so tragically sad I would be rolling on the floor laughing right now.

You just gotta had those Ivy league genius credit, when they create a scam they do it thorough. Sell you toxic shit. borrow it, claiming it is in such demand, pledge it as collateral to yet another imbecile, use proceeds to seed yet ever more toxic paper. Rinse repeat. I mean, who comes up with this shit, not some bucket shop operators from JT Marlin out of Jersey our Bernie Madoff who was content to simply run your basic Ponzi 101 racket but rather those sought after graduates of the worlds most prestigious universities, that's who!

Might I suggest the time has come for global banking crime syndicate, along with their representative stooges in government, to simply drop all pretences and simply to walk in and take the money and dare anyone to stop them. My guess is their grovelling, bought and paid for stooges in government would carry the heavy suitcases full of cash out for them.  I know this sounds defeatist and apathetic but the vast majority of the population is so Prozac'd, Ambien'd, Khardashian'd & Idol'd up they wouldn't know the difference.

Saturday, June 23, 2012

Is a Bag of Tricks is All That Matters?

Don't know how but I missed quite the twitter post from @Pimco #BillGross recently. I like Bill. He is as market astute as they get.  I just can't help pointing out his bouts of hypocrisy, from time to time. That being said, his twitter post on Jun 21 was a doozy. Here it is as it appeared then;

"Gross: Risk markets at risk as monetary bag of tricks empties"

Hang on a minute.

Do you mean to tell me that the recovery all these shills and charlatans on CNBC and Bloomberg have been crowing about is a facade? Does Bill mean to say that the Fed is the impotent Wizard of Oz behind the curtain, that the whole thing has been a monetary magic show?

In turn, am I to believe that the smart money, Ivy league MBA, 2+2=6 crowd knows this? I mean they're the smart money aren't they? They're gambling, excuse me, investing your hard earned 401k, IRA and pension plan money in the markets based on sound macro and micro economic and fundamentals analysis right? Due diligence on stuff like employment numbers, incomes, balance sheets, bond yields, foreclosures, debt levels, profit margins, capacity utilization, historical ratio comparisons, NET cash levels etc.

These financial genius types surely wouldn't be betting, excuse me again, allocating your retirement assets based on the Fed's monetary 'hocus pocus in the hope that they will get a seat first when the music stops ( a la Chuck Prince) before all the other smartest in the room, Ivy league MBA, 2+2=6 types do?

They would never be invested in a fundamentally deteriorating market with the risk skewed horribly to the downside. I mean surely those that tried this during the dotcom bubble- those that knew the field was a field of mines yet still ventured in chasing bonus's- and yet again in the liar loan, NINJA mortgage fueled housing bubble have been drummed out of the business. (Ha ha if you think this then you don't know Irvin Goldman of JPM (formerly Cantor Fitz) or the Lehman or Bear genius's relocated on Wall St.)

They had to have learned from the dotcom and housing bubbles there are never enough seats as there is ego to go around, not matter what daddy told them about how smart and special they are in between tennis and golf lessons at the club.

I have surmised in the past the those in the know, know the ship is in big trouble and are stealing anything not nailed down before it sinks. I have indicated that the Fed and Treasury's machinations are only a stay of execution of the mathematical inevitable. Actually Bill Gross could have replaced the phrase monetary bag of tricks with Ponzi tactics collapse.

Or as I said in my own twitter post Jun 19

"In u ignore bond yields, job mkt, 4closures & debt levels, all that matters is easing which, sans , =yet more suckers"

In a Ponzi scheme and to those Ponzi worshippers, whose incomes & bonus depend on the ponzi continuing, a bag of tricks is all that matters. Its simply cloaked in official sounding phrases like "don't fight the Fed" & "quantitative easing" to gain respectability.

Wednesday, June 20, 2012

Deflation

lnteresting report from Marty & Charlie over at #ComstockPartners entitled Special #Deflation Report. It certainly is not for the 2+2=6 crowd nor those parking valets chasing bonus money via OPM (other peoples money. (Wait a minute, isn't that the same group of people?) The piece is accompanied by some very interesting charts at the top of the page. Hope you enjoy it as the cats at Comstock do very good work which always is worth discussion.  Thanks again fellas, it's very much appreciated.

Tuesday, June 19, 2012

With Expertise LIke This, Heaven Help Us

Regular readers know what I think of former proof reader turned Wall St. internet shill, turned bought and paid for lying thug, turned born again "I have a conscience now" faux pundit Henry Blodget. The apologists out there can save their breath and keystrokes making excuses for this sorry excuse of an individual. Professional history revisionist that he is Henry would have us believe he is quite the expert on all things economic and Wall St.

Actually there is no one I would prefer were I to need an expert lesson on deceit, misdirection, being on the take, bought and paid for smoke and mirrors horseshit sans maybe a Mary Meeker or a Jack Grubman. For a moment, lets forget the absolute unfathomable metamorphosis it takes to turn a BA in English proof reader into an Wall St. internet expert, which on its face should explain a whole hell of a lot about Wall St. to you, and focus on Henry's more recent masterpieces.

Yes, not content to take his generous Merrill severance money and do investors an enormous public service and disappear Blodget is back out trying to show us not only how magnanimous he has become, but also how his brilliant economic mind can be used for good now that he has grown a conscience. Which by the way should be much easier to have obtained given that 7 figure severance package but I digress. 

Lest you be fooled by Blodget and his self promotional propaganda campaign check out his latest gem of uber-imbecility out today entitled Yes, It's Time For A Massive Infrastructure Spending Program.

Just so you don't think I am anti Blodget 100% of the time ( I assure you I am an equal opportunity offender) I offer this gem I previously posted Send Your Kid to Princeton, Be My Guest of yet more uber-imbecility from a cat, Paul Krugman, who at times can almost corner the market in it. 



Friday, June 8, 2012

A weekly view of former darling #Netflix, ticker $NFLX. Might be worth watching here.