Archive - May 26, 2010 - Blog entry

Michael Travaglini, head of Massachusetts' pension fund plans to quit next month, citing as a reason efforts by legislators to limit what he and his staff can earn. Interestingly, Travaglini is joining Grosvenor Capital Management, one of five firms slated to manage the Pension Reserve Investment Trust board’s $3.2 billion in hedge-fund assets last fall. Talk about violating basic pension governance rules!

If we are not there, we're pretty close.

Watch it live ...

David Wessel of the Wall Street Journal laments the fact that Mr. and Ms. America wrongfully scorn the bailouts of Wall Street. He believes the bailouts saved the world. I think Mr. and Ms. America have it right.

A review of the 1st Quarter 2010 FDIC bank data reveals an ever increasing amount of nonperforming loans for 1-4 Family First Liens. Banks are sitting on $185 Billion in loans that are either 90+ Days Past Due or on Nonaccrual.

The lucky country has become accident prone. Shooting itself in the foot with a 40% special tax on the profits of mining companies. Start scaling back into the Ausie dollar and the Ausie/euro cross. Australian stocks should be at the top of your list too. (FXA), (EWA).

If Greece follows in the footsteps of Argentina (which is quite possible) many financial institutions will be in a world of hurt - forced to take 60-70% losses on instruments that they levered up 20x on. We're talking real pain here people, and it is highly unlikely Greece will be the only one. For all of those who may call me a doomsayer, let's walk through the numbers...

Another day, another pension bomb blows up: "The Teamsters' Central States Fund has been woefully underfunded for years. It had only 47 cents on every dollar owed in 2007 and likely is much worse today in light of the recent economic downturn." And guess who wants to draft legislation to bail this mess out?

In response to the bankers and governments’ global rape, pillaging and plundering of people’s assets and freedoms, we are starting a series of essays that we call “The Liberation Essays” in an attempt to educate the masses about the true nature of the global financial system. We will continue to write our essays until we feel we have achieved our goal of education and eventually liberation from the racketeering firms that call themselves Wall Street and Central Banks. Below we grant you essay No. 1.