Monday, March 5, 2012

The Joke's On US

Our whole system or Rule of Law and accountability has completely broken down at the highest levels of Government and banking.  Our system is no better than the Banana Republics we grew up  to mocking and despising - THAT's our system now...
It's now starting to look like Jon Corzine and JP Morgan both are going to get away with hijacking customer funds.  I predicted early on that 1) the original amount of missing $600 million in customer would funds would turn out to be a much greater amount and 2) that Corzine and Company would get away with robbing from the middle class and giving to the wealthy.  There's just no justification whatsoever for that customer money disappearing - and that no one is being held accountable for it -other than that Wall Street executives feel entitled to loot and plunder the country's wealth free from fear of prosecution. It surprised me that no one involved in the banking collapse of 2008 was investigated or prosecuted. The entire situation was bleeding fraud and corruption.  But it blows my mind that Corzine and JP Morgan can openly steal like this and get away with it  LINK

Obama ran on a platform that included cleaning up Wall Street and DC.  Not only has he not honored that promise - that pact with his supporters - but fraud and corruption has become a lot worse.  In fact, it's gotten to the point where the perpetrators don't even try to camouflage their crimes, because they know the Government looks the other way and it seems that most people don't give a shit.

And Tim Geithner has decided that he can't be bothered with paying taxes or with subpoenas.  It turns out that apparently Geithner, when he was head of the NY Fed, was involved in the transfer of $8 billion in assets from Lehman to JP Morgan - there's JP Morgan again - right before Lehman collapsed.  The Lehman creditor's committee would like to bring Geithner in to ask him some questions surrounding his knowledge of the asset transfer.  Geithner made 35 calls to then Lehman CEO Richard Fuld and 10 to JPM's Jamie Dimon the week before the asset transfer and the subsequent Lehman collapse.  Geithner decided that he couldn't be bothered with answering questions so he simply ignored the subpoena.  Now the creditor's committee is appealing to the judge overseeing the bankruptcy to compel Geithner to appear.

You can read the story about this HERE.  What's mind-blowing about this is that Geithner is a public employee and should be held to the highest standard of integrity and truth.  As a public servant, and especially since north of a trillion dollars of public money was used to prop up the banking system, Geithner should be jumping through hoops for the creditor committee.  It's almost like he's taunting the entire legal system and the people who voted in his appointer, Obama, by ignoring the subpoena. 

What better use of his time does Geithner have?  Because, quite frankly, he's been completely useless as a public servant serving as Treasury Secretary.  It really underscores what a joke our entire system as become.


  1. Come on Dave. The government is too busy giving guns to Mexican drug cartels and prosecuting people that sell raw milk to be bothered with investigating the loss of trillions of dollars.
    Glenn Reynolds may say it best: "Tar. Feathers."

  2. I see that Steve Bridges the Obama and Bush impersonator has been found dead from "natural" causes at age 48.

    Evidently Obama was deeply offended about being impersonated by Bridges.

    There is now a growing list of famous people who die suddenly of "natural" causes.

    Watch your step and keep looking over your shoulder Dave.

  3. "It's not personal, Sonny. It's strictly business."

    ...connect the dots....

    Five Dots from Cabbie to Billionaire

    Our regulatory and legislative systems have been supremely indulgent of these behemoths. Here and there, the big banks emerge from settlements with fines for fraudulent practices, but it doesn’t make a dent in the risk they can manufacture, or the size to which they can grow. The Federal Reserve has ultimate regulatory authority over the big banks, and under Chairman Ben Bernanke, used that authority to approve, not reject mergers, to facilitate a cheap money party to fuel, what would otherwise have been insolvent financial giants, and to allow those same giants to re-funnel their subsidies back to the books of the Federal Reserve as excess reserves that gross .25% interest per year. Separately, the tepid Dodd-Frank Act gets watered down more each day. But even at its ‘strongest’ inception state, it didn’t break up the banks, nor reduce the risk they pose our global economy. Bank of America holds 35% MORE derivatives today than before the fall of 2008.

    All these dots and lines project a gamed world, where it is not sweat or merit that propels people forward, but connections and power and pedigree. Which brings me back to my cabbie friend. As he dropped me off, he offered this morsel of wisdom, “Things won’t change until we’re all paying the same fares. At least, that’s a start.”

  4. although I agree that Obama has completely reversed his course from his election year rhetoric and is a shameful excuse for a president you have to discount whoever is in office since it's become nothing more than a suit that is occupied by whomever blows the banker class the best. Remember what Volcker said in the early 80's.... "doesn't matter which party is in power..we own them both"

    It's what goes on at the cabinet level that we have to focus on. When Regan was put in at Treasury the system was finally complete in it's capture. Now I realize that had been done in the past (bankers at Treasury) however that was the most overt and brazen installment at the time...the financial coup was completed then.

  5. Mafia Outmafia’d by Wall Street

  6. no answer to subpoena but....

    Govt. agencies, colleges demand applicants' Facebook passwords
    By Bob Sullivan

    If you think privacy settings on your Facebook and Twitter accounts guarantee future employers or schools can't see your private posts, guess again.

    Employers and colleges find the treasure-trove of personal information hiding behind password-protected accounts and privacy walls just too tempting, and some are demanding full access from job applicants and student athletes.

    In Maryland, job seekers applying to the state's Department of Corrections have been asked during interviews to log into their accounts and let an interviewer watch while the potential employee clicks through wall posts, friends, photos and anything else that might be found behind the privacy wall.

    keep sleeping America!

  7. Yes the joke is on the precious metal people.

    The gold miner ratio must now be below the 2008 low!!!!

    How about Turk, Embry and the lot. Didn't factor in lots of things like a fall in the Dow and the S&P.

    You thought we could uncouple. Pathetic.

    1.'s the joke!

      Determinations Committee Decision
      Date: March 1, 2012
      Determinations Committee: EMEA
      Meeting Date: March 1, 2012

      Issue Number: 2012022401 Has a Restructuring Credit Event occurred with respect to Hellenic Republic?

      Question 1. for vote: Has a Restructuring Credit Event occurred with respect to Hellenic Republic?

      Vote result: No
      Votes: 15 "NO" votes – Bank of America Merrill Lynch
      Credit Suisse
      Deutsche Bank AG
      Goldman Sachs
      JPMorgan Chase Bank, N.A.
      Morgan Stanley
      BNP Paribas
      Societe Generale
      Citadel Investment Group LLC
      D.E. Shaw Group
      BlueMountain Capital
      Elliott Management Corporation

      0 "YES" votes

      ...keep believing:)

  8. LOL. Depends on how you play your hand. We have some stocks that are 3x their 2008 level right now...

    The stocks for sure are highly correlated with the SPX. The metals are too, to an extent. At some point there will be a dislocation. Study your history: 1929 and 1987.

    1. And actually in 2008 the metals and miners bottomed 6 months before the Fed/Obama trillions ignited a fire under the SPX...QE3 is closer than most are willing to believe after Bernanke flung shit last week.

  9. Also Dave don't forget 1979 -1980 in melas stocks ... Once metals shoot up .. So will their stocks.. And they will decouple as most other assets get drilled !!! anyone who thinks metals go to over 2,000 and 50 and miners don't follow will be left with their beautiful picturesque fiat

  10. I ask you all to call Preet Bharara, the US Attorney for the Southern District of New York, and ask him to do his job. He should have issued indictments by now.

    Every MF Global customer (victim) should call.

    Say "Who will you hold accountable?"