The Golden Truth: The Devil Is In The Details...Speaking Of The Devil (per my earlier post)

Monday, August 22, 2011

The Devil Is In The Details...Speaking Of The Devil (per my earlier post)

"Nobody lawyers up like this unless they are in deep shit" - my anonymous Wall Street source

There's no honor among thieves and when rats are trapped in the corner, they fight back. Lloyd Blankfein just removed from "services available" one of the best DC-insider-connected defense attorneys, indicating some real shit could be hitting the fan at Goldman Sachs. This particular lawyer - who must be a serious piece of work if he's willing to prostitute his services defending servants of the devil - worked out deals for some real beauts: Bernie Ebbers of WorldCom, Enron's chief accountant and Roman Polanski. The speculation ranges from Justice Department inquiries into Goldman's highly fraudulent role in the mortgage market meltdown to likelihood that Blankfein and Goldman are both under heavy legal siege on both the civil and criminal fronts. Goldman stock plunged another 2.5% after the close, when that news report was released (conveniently) and is down roughly 40% year-to-date.

Not only that, but an analyst report on Bank of America was circulated today that speculated that BAC needs to raise $40-50 billion in capital to remain solvent. If that report has merit, it will be interesting to see how BAC pulls that off because it's current market cap is around $65 billion. Short of Obama borrowing from Michelle's travel fund and using Taxpayer largess to fund BAC, I don't see smart money lending that kind of jake to BAC unless it were on a "super" senior secured DIP basis - Debtor-In-Possession bankruptcy financing.

The above two events are marquee indicators of the disaster coming our way from the financial system...

11 comments:

AnonymousMonday, 22 August, 2011
Did you hear maria after 4pm?...she was trying to sell jeans on the air...

The Times' Andrew Ross Sorkin Gives Goldman a Rubdown
Now I’m bummed to see that Sorkin has written an elaborate defense of
Goldman in the New York Times "Dealbook" section, arguing among other
things that Lloyd Blankfein probably did not commit perjury and that
the bank did not have a huge directional bet against mortgages in
2007. As evidence, Sorkin cites unsubstantiated Goldman documents and
Goldman sources who claim, among other things, that the bank had $5
billion worth of long bets on MBS "in other parts of the company,"
offsetting the now-notorious "Big Short."

The Sorkin piece reads like it was written by the bank's marketing
department, which may not be an accident.

But now? This looks like a joke. In Russia in the Yeltsin years,
reporters had a term for selling editorial print content to mobsters.
They called it "selling jeans," a play on the old Soviet-era
black-marketeer practice of trading rabbit hats to tourists for their
Levi's. This Sorkin piece has the unmistakable look of a brand-new set
of 501s to me. Pieces like this undermine the great work that
reporters like Gretchen Morgenson have done in the paper in recent
years.

At the very least, Dealbook, if it was determined to take startup
money from Goldman, should have stayed agnostic about the great
scandals swarming round the company for a good long while.

http://www.rollingstone.com/politics/blogs/taibblog/andrew-ross-sorkin-gives-goldman-a-rubdown-20110607
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AnonymousMonday, 22 August, 2011
(Dave)

I know for a fact Maria is or used to be a huge coke-head. She's a lot more fat than brains.

All the big Wall Street banks are guilty of fraud with mortgages and derivatives and Goldman is probably the most guilty. It's picture-perfect that Obama has a lot of ex-Goldman people in his Administration and acting as one of his "advisors." It's also no coincidence whatsoever that Henry Paulson was put in as Secy of Treasury for the first collapse and it's no coincidence that an ex-Goldman guy heads the CFTC. And it's no coincidence that Robert Rubin's butt-boy, Geithner, is current Sec'y of Treasury. Obama is more of dirty little puppet than W was.
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AnonymousTuesday, 23 August, 2011
hmmm...maybe the geniuses lose their genius if they can't track positioning?

Rickards - Chavez’s Gold Leased to JP Morgan, Barclays, HSBC?

Taking that altogether, what does it all mean? Well, the reserve part of it, moving the dollars out of BIS and moving it into Russian and Chinese banks tells me that he’s worried about a freeze. He’s worried about some kind of confrontation with the United States number one, but he’s probably worried the dollar itself.

Meaning, once he gets the dollars into Russian banks, he can then tell the Russian banks, his new custodians, ‘I want you to sell the dollars, buy the euro, buy more gold, buy Chinese yuan. But it’s a way for him to diversify in ways that are not very easy to track.

Right now if he is doing it in BIS, the Fed is going to know and other people are going to know, but if he’s doing it through a Russian bank and Russia is sort of fronting for Venezuela, you’re not going to know who’s behind it. So it’s a way to first of all get out of the US system so he’s not subject to a freeze, number two get out of the dollar so he is not subject to a dollar collapse.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/8/23_Rickards_-_Chavezs_Gold_Leased_to_JP_Morgan,_Barclays,_HSBC.html
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AnonymousTuesday, 23 August, 2011
why own gold?..trust!

I don't trust anyone!
http://video.cnbc.com/gallery/?video=3000040963

forget inflation/deflation...gold is the anti-fraud trade.
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AnonymousTuesday, 23 August, 2011
nice hit job in gold...remember why you bought it...ANTI FRAUD TRADE...and the fraud run'eth over..refresh your memory!

video...

Covering Up Wall Street Crimes: Matt Taibbi Exposes How SEC Shredded Thousands of Investigations
An explosive new report in Rolling Stone magazine exposes how the U.S. Securities and Exchange Commission destroyed records of thousands of investigations, whitewashing the files of some of the nation’s largest banks and hedge funds, including AIG, Wells Fargo, Lehman Brothers, Goldman Sachs, Bank of America and top Wall Street broker Bernard Madoff. Last week, Republican Sen. Chuck Grassley of Iowa said an agency whistleblower had sent him a letter detailing the unlawful destruction of records detailing more than 9,000 information investigations. We speak with Matt Taibbi, the political reporter for Rolling Stone magazine who broke this story in his latest article, "Is the SEC Covering Up Wall Street Crimes?"
http://www.democracynow.org/2011/8/23/covering_up_wall_street_crimes_matt
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AnonymousTuesday, 23 August, 2011
Marc Faber Explains How Even The "Greatest Bear On Earth" Gets It Wrong

"To some extent we are in midst of QE3 already, because by announcing the Fed will keep zero interest rates until the middle of 2013, they basically encourage financial institutions to borrow short-term and to buy 10-year Treasuries" on a contrarian outlook on stocks: "I am the greatest bear on earth, but if you compare Treasury bond yields and equities, equities look reasonably attractive", on why Insider "buying" just as we have said repeatedly, is far too much ado about nothing: "Compared to all the selling in the last six months the buying is relatively muted" and lastly, like a gracious loser, Faber admits he was wrong and Rosenberg was right "David Rosenberg was right and I was wrong. The 30-Year has not made a new low. The low in December 2008 was 2.53%. Now we're around 3.4%"... although with a caveat: "Basically we have an artificial market."

http://www.zerohedge.com/news/marc-faber-explains-how-even-greatest-bear-earth-gets-it-wrong?
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AnonymousTuesday, 23 August, 2011
Could Blankfein Face Prison?
Aug 23, 2011 12:34 AM EDT
The Goldman Sachs CEO didn’t get a big-time criminal-defense lawyer because he’s worried about an SEC wrist slap—there’s a real possibility of doing time, says former Goldman managing director Nomi Prins.
http://www.thedailybeast.com/articles/2011/08/23/lloyd-blankfein-why-goldman-sachs-ceo-hired-lawyer-reid-weingarten.html
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AnonymousTuesday, 23 August, 2011
Forward to friends and family...

Harry Markopolos

The whistleblower whose book on the Bernie Madoff scheme, No One Would Listen, is the basis for the new film Chasing Madoff, discusses his 10-year journey and explains why the fraud was obvious to anybody who cared to look.

For years, Harry Markopolos tried to tip off the U.S. Securities and Exchange Commission to what turned out to be the largest Ponzi scheme of all time. The former securities industry exec turned independent financial fraud investigator was working for a Boston investment firm, when he discovered Bernie Madoff’s house of cards and gives an account of the scandal in the new book No One Would Listen. Markopolos has a master’s degree in finance from Boston College and is past president of Boston Security Analysts Society, Inc.

http://www.pbs.org/wnet/tavissmiley/interviews/author-harry-markopolos-2/?show=8616
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AnonymousWednesday, 24 August, 2011
Satan meet Lucifer...

Rothschild Is Now In TBTF Plunge Protection Business

Following the already failed attempt by captured pan-European regulators to stop the local bank Friend-o treatment by instituting a short-selling ban, whose effectiveness as we pointed out lasted, oh, about 7 days, we find just what Plan B is. And, yes, Rothschild is involved. From the WSJ: "Societe Generale SA, whose shares have come under severe pressure in recent weeks, said Tuesday that it had signed a liquidity contract with Rothschild & Cie. to prevent excessive volatility in its stock price." That's right: Rothschild is now in the Plunge Protection business. And they all have the ECB to thank for it: after years of not learning from the New York Fed-Citadel Joint Venture, which "never" steps in at precisely the right time (wink wink), they have opened the market for third party PPT incursions. It only seems fitting that the bank that started it all, would step in and fill the void. Because after all if SocGen falls, Rothschild will sooner or later follow. That said, the official explanation is worth its weight in laughter: "The idea is not to keep the stock price high, but rather to keep it steady" a representative for Societe Generale said. After hearing such... brilliance... what really is there to say?

http://www.zerohedge.com/news/rothschild-now-tbtf-plunge-protection-business?
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AnonymousWednesday, 24 August, 2011
Great Article, Keep up the good work

http://www.thesilverchronicle.com/
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AnonymousWednesday, 24 August, 2011
Thanks for your comments always.

This is a great chance now to get out of miners and back into the metals. I am sick and tired of miners stress. And such a lovely fall back in metals needs to be bought.

Absolutely every precious metal bull has been wrong that miners will go even if gold falls back. It seems that gold miners need a stable gold price and a stable stock market. Miners will never go it alone - they always need one or the other companion.

Ontop of that miners are a target by all governments in the future. Its just not worth the aggravation.

And this metal attack is just the right moment to do the switch.

*é£$ the miners
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.