The Golden Truth: Update On Jefferies

Tuesday, November 22, 2011

Update On Jefferies

The SilverDoctors blog was the first place I saw this story (god knows I don't watch Fox Business - not sure who does). It turns out that apparently Jefferies CEO is looking for a large white-knight firm to take them over. Translation: "our balance sheet is hopelessly insolvent unless we get bailed out and I still might be able to sucker a big bank to buy our firm while the stock still has value to insiders who own a lot." Here's the LINK I would initiate an account transfer out of there tomorrow if I had money at Jefferies...

To be quite frank, I'm not sure why Jefferies would be of value to any buyer. I firmly believe that on a market-to-truth basis that Jefferies has a substantial net worth. The brokerage and investment banking model can be replicated anywhere. The asset management business and banker relationships probably have good value on a stand-alone basis, but they are entwined in the roach motel that is Jefferies balance sheet and who knows what other hidden and contingent liabilities are lurking off-balance-sheet and "in the closet." The asset management business can be plucked out of bankruptcy and the bankers who have valuable relationships will go to the highest bid from other firms...

11 comments:

TyroneTuesday, 22 November, 2011
Off-topic:
Quick comment from Janszen...
Video: EJ Quick Comment
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AnonymousWednesday, 23 November, 2011
Your childishly snide remarks about anything related to right-wing media or politics is really embarrassing anymore.
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AnonymousWednesday, 23 November, 2011
What's snide about being truthful and non biased?

I've been coming to this site for a long time and while I don't always agree with every idea on the blog...Dave usually punches with both hands...left and right...but sometimes readers are so punch drunk with their ideologies they can't see the TRUTH!(see top of page)

Happy Thanksgiving!

Dante
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AnonymousWednesday, 23 November, 2011
Just remember before long that turkey you're eating on the table tomorrow could be each of us before long...gobble,gobble!

Court Closed Door To MF Glob Customers, Future Theft Timeline Strategy

The Court Closed the Door To MF Global Customers. What happens behind closed doors is obvious. There is a timeline which the major players are following to close the door to "Fraud." The word Fraud would open the door for customer recourse at the cost of a large swatch of the derivatives market.

http://www.youtube.com/watch?v=z3VtyMGOua8&feature=colike
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AnonymousWednesday, 23 November, 2011
(Dave)

Always good to have differing opinions - it's what makes markets. What I was referring to is the fact that Fox Business - last time I saw the market poll on it - had less than 10,000 viewers nationwide at any given time.

Having said that, cable news is appallingly pathetic, whether its CNBC, Bloomber, Fox, CNN or MSNBC. People who rely on those sources for their news are lazy and like to engage in mental masturbation.
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AnonymousWednesday, 23 November, 2011
How's this going to be covered?

More Moral Hazard on the way

brought to us courtesy of senators Kay Hagan of North Carolina and one of the banking lobby's most obedient lap dogs, Bob Corker of Tennessee;
The United States Covered Bond Act of 2011 is designed to allow bundling of any kind of debt including derivatives, into marketable securities guaranteed at full face value by the FDIC.

http://patrick.net/forum/?p=1162830
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AnonymousWednesday, 23 November, 2011
Who Will Bail Out the Fed?

November 23 (King World News) - From Occupy Wall Street to the halls of Congress there is anger at bailouts orchestrated by the U.S. Federal Reserve. These bailouts have not been limited to banks but include brokers, money market funds and foreign corporations. The Fed has released details grudgingly and some disclosures were forced by the Dodd-Frank legislation. Gradually the bailouts have been revealed as if a veil were slowly being drawn to display a densely formed mosaic. The bailouts have enriched stockholders, bondholders and CEO’s while unemployment remains at depression levels and forty-six million Americans survive on food stamps.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/11/23_Jim_Rickards_-_Who_Will_Bail_Out_the_Fed_%26_How_High_for_Gold.html
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AnonymousWednesday, 23 November, 2011
They need these big #'s to cover every crime they all committed or partook in...notice always the same players, same names...unreal!

Sarkozy: Europe's "Liquidity Run" Has Begun Because There Is An Unsolvable $30 Trillion Problem

No, not that Sarkozy. His half-brother - the one who actually can use a calculator. In an interview on CNBC, the Carlyle group head had the temerity to tell the truth, the whole truth, and use math - that long-forgotten concept which one has to scour various backwater blogs to rediscover - to explain nothing but the truth which is that Europe needs many more trillions than either the EFSF or the ECB can afford to give.

In Europe, that $3 trillion is $30 trillion. so if you multiply the $212 by 10, you get the $2.12 trillion. In my view, the issues on the European banks are bigger than the issues on the books of the US Banks. So if you want to stabilize that $30 trillion and in my view it's not that you want to, it's that you have to, you do not have a choice, you're going to have to be at least at 2.1 trillion and i suspect it may need to be more." Q.E.D. - there, the math wasn't that difficult, was it?

http://www.zerohedge.com/news/sarkozy-europes-liquidity-run-has-begun-because-there-30-trillion-problem?
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AnonymousWednesday, 23 November, 2011
compared to $ rally golds holding up rather well...

Mint raises $600-million in gold fund IPO

The Mint issued exchange-traded receipts that offered the buyers direct beneficial ownership of gold with no intermediaries, such as an asset manager or counterparty. The ETRs will be listed on the Toronto Stock Exchange in Canadian and U.S. dollars.

http://www.theglobeandmail.com/globe-investor/investment-ideas/streetwise/mint-raises-600-million-in-gold-fund-ipo/article2246024/
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AnonymousSunday, 04 December, 2011
i understand the gld slv paper trade isnt prudent going forward but what about silver mining shares? safe or not safe?
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AnonymousMonday, 05 December, 2011
(Dave)

Depends on the silver mining shares. Ultimately all paper will be very risky, including shares. Best to have about a year's worth of gold/silver in your actual possession. If you think our system won't collapse for a few years, the shares are a good way to try and make more fiat paper that you then convert into metal.

I like HL, FSM, AG, and SLW in the large cap silver universe. I like Wildcat Silver in the junior realm. And AUMN
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Add comment

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.