The few who understand the system, will either be so interested in its profits, or so dependent on its favors that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantages...will bear its burden without complaint, and perhaps without suspecting that the system is inimical (harmful) to their best interests - The Rothschild brothers of London writing to associates in New York, 1863Lest anyone think that I'm a Romney supporter, given all the criticism of Obama that I issue, I found this to be not only funny but truly awesome: “Romney has a Koch problem” (the name is pronounced "coke"). That was the banner being towed by an airplane over the Hamptons, where a couple fundraisers were being conducted for Romney this past weeekend: LINK
If you ever want to figure out who the puppeteers are that control the puppet strings of a politician, look to the biggest campaign donors. So for instance, with Obama it's several Wall Street firms and individuals like JP Morgan, Goldman Sachs, Jon Corzine and Warren Buffet. Now we see that the Koch brothers will have a heavy influence on Romney, should he be elected. In addition to the double dose of social and moral regulation and control that will come with a Romney White House, the Kochs are truly the modern day equivalent of robber barons. I'd rather have my teeth pulled out one by one with no novacaine than live in a country influenced by Romney and the Kochs.
How are your muni bonds looking? LINK San Bernardino is going to be the 3rd city in California to file bankruptcy in the last two weeks. It starts slowly and then avalanches. Anyone who thinks this can't happen in their own city is either hopelessly naive or tragically ignorant. Most municipalities are running some kind of spending deficit. If you look into the San Bernardino situation, the city council was given fraudulent budget reports for 13 of the last 16 years. Imagine that? San Bernardino isn't unique in this regard. This is going on across the country.
A few months ago I wrote some commentary explaining why the housing market had not bottomed and showed how the recent "stabilization" being promoted in the media as a "bounce in housing" was really nothing more than a big moratorium on foreclosures. I suggested that 2012 would see a resumption in the escalation of foreclosures. Well wouldn't you know it: "FHA's mortgage delinquencies soar" LINK. The banks and FNM/FRE have been working overtime to work off their REO foreclosure inventory, mostly selling them as rentals to "investors," in order to prepare for the next cycle of foreclosures. As an aside, it was reported that over 45% of the mortgages in San Bernardino are under water. Look out below. If you bought a house in the last 12 months thinking it was "a great value and investment," my condolences.
Finally, I wanted to share some thoughts I sent to GATA's Bill Murphy last night, as he had reflected in his nightly "Midas" report LINK that something about the markets "spooked" him last night:
I just read where you felt "spooked" all day. Same here. I can't put my finger exactly on it but I think it has to do with the PFG thing. That this happened after Madoff and MF Global is just incomprehensible. Either the people enforcing the laws are retarded or are in on this looting. My bet with Gary Gensler is the latter.Our country is disintegrating before our eyes. Buona sera a tutti (Good evening to everyone).
If Obama was merely just doing his job as President, he would make Gensler step down from the CFTC and go away. If Obama is worth anything at all as an ethical, principled, moral human being he would have Gensler investigated. This would include all email correspondence and phone logs at the CFTC AND his private residence/cell phone.
What is "spooky" about what is going is that our system is being completely looted while the Government stands by and enables it. The fraud and corruption runs deeper than any of us can possibly comprehend. The public in general is clueless other than to know vaguely that "things ain't right."