Art Cashin On High-Frequency Signing, The Death Of Securitization, And Fleets Of Fed Helicopters

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Thu, 10/07/2010 - 09:50 | 631998 Jim in MN
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Fed Hawk Down

Thu, 10/07/2010 - 09:55 | 632015 john_connor
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Thu, 10/07/2010 - 10:29 | 632079 Jim in MN
Jim in MN's picture

Better call in another Fed Hawk to cover the first one


Thu, 10/07/2010 - 11:39 | 632338 Hephasteus
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Irene. No central bank get's left behind.

Thu, 10/07/2010 - 10:44 | 632123 Battleaxe
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Placebo 2!

Thu, 10/07/2010 - 12:25 | 632535 RighteousRampage
RighteousRampage's picture

It's a TARP!

Thu, 10/07/2010 - 13:03 | 632682 Battleaxe
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Fed set to announce FUCT: Federal Unrestrained Currency Tampering program.

Thu, 10/07/2010 - 09:51 | 632005 Bill Lumbergh
Bill Lumbergh's picture was just gang raped and kicked to the curb in a matter of minutes.

Thu, 10/07/2010 - 09:56 | 632018 firstdivision
firstdivision's picture

If you think gold got gang raped, check out Platinum.

Thu, 10/07/2010 - 10:58 | 632165 hbjork1
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It is Al Nobel's fault.

They just gave the chemistry prize for a "palladium-catalyzed cross-coupling" reaction pathway that is expected to find broad application in making of difficult to synthesize pharmaceuticals. 

PALL is actually up.

Thu, 10/07/2010 - 10:02 | 632037 LoneStarHog
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Watch the PERCENTAGE of change and not the AMOUNT in pennies/dollars.  So far the percentage of change is minuscule.

Sun, 10/10/2010 - 23:20 | 640181 sullymandias
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You're right, the percentage change is minuscule compared to the dollar amount!

Thu, 10/07/2010 - 09:52 | 632008 firstdivision
firstdivision's picture

Nice sell off after that open with futures up 7+.  We are defo in a massive resistance and seems to be lots of sells willing to dump at these levels than buyers.  Fed should of had a POMO today.  I am sure Brian Sack is busy figuring out what he can buy to prop this carcass up.

Thu, 10/07/2010 - 11:21 | 632009 Bob
Bob's picture

This lawsuit sums up much of the securitization fraud liability very nicely:

Note the filing date of April 28, 2010.  The word has apparently been out for quite a while now. 

Note also that it is a Qui Tam (False Claim) action filed by a single individual on behalf of the state of Tennessee.  While Qui Tam is federal law, originating with Lincoln, in this case it is filed in State Court under TN's Qui Tam statute.  The guy who filed this against all the bankster institutions stands to make at least $2500 per violation of law . . . on 1M violations in TN alone!  Sure, he may only get 30%, but . . .

We don't have to wait for the government--at any level--to go after the banksters.  If you have knowledge, say as a realtor, mortgage rep, county clerk office secretary, filing clerk at a bank, anything at any level, you too can file . . . and get fabulously rich for pushing the courts to do the right thing. 

Who could ask for anything more?  Realistically, I mean.  Only the Fed can fart dollars, after all. 

Thu, 10/07/2010 - 11:54 | 632405 mrcmmm
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This is part of why I think it is big, very big.  The same investment banks that are going to be the targets of the homeowners, the state and federal tax authorities, false claim suits, and state and union pension fund investors, are ALSO the ones having to deal with the CRE maturity cliff that starts ramping in, oh, nine months.  It's like that Calvin and Hobbes cartoon where he's got the family minivan, the train, the airliner and the fuel tanker all heading for a cataclysmic event.   Fed might have a plan for throwing another $1T+ at the banks to handle the impact of either RRE or CRE, but not another $1T+ to handle both.  Why would one not short JPM, DB, WFC by the truckload at this point?  Or am I being naive about the lengths the Fed can and will go?  And even if it what?

Thu, 10/07/2010 - 12:04 | 632456 Bob
Bob's picture

I ate my shorts last year and lost my appetite.  My impression is that trading on a collapse won't be allowed.  I would expect Barry or a proxie to close the markets if a "systemic risk" appears a second time. 

Thu, 10/07/2010 - 09:54 | 632013 Kina
Kina's picture

Of course, the criminals are at it again. Will be interesing to see how long it stays down.


Never fear, when SHTF the regulators and minipulators will have their own special necktie party.

Thu, 10/07/2010 - 09:58 | 632024 RaymondKHessel
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Thu, 10/07/2010 - 10:27 | 632076 tecno242
tecno242's picture

Nothing has to give..

there's enough money being montetized to push up everything.

Mr. Bubble is creating a bubble in everything.

screw that one sector bubble crap.

Thu, 10/07/2010 - 11:53 | 632401 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Yep, everything is a giant bubble.... until one day it is not. They can keep on buying things at inflated asset values, but in the end someone will need to purchase products whether it be commodities or products from companies. Then, we will have the panic and collapse.

Thu, 10/07/2010 - 13:30 | 632760 tecno242
tecno242's picture

yup pretty much it.

and Tyler, I love you.. but you should pay attention to this..

when the bubble spider web collapses... The collapse will destroy all the printed monetized dollars too.  Cause all the dollars that are printed are being put into assets. 

When those asset prices collapse, all that created money just goes poof.

Gold will succomb to the same fate as all other assets, as the monetary base is severely contracted.

at some point we'll probably see 10 trillion in US denominated assets go poof in less than 6 months.

The US Dollar will first gain tremendous value as asset prices are destroyed.

That will be followed by the economy tanking and at some point, the US dollar going from extremely highly valued to nothing very quickly as the realization hits that the US will default as the economy tanks.

so why keep buying gold at 1300.. when you'll probably be able to buy it at 500 before the dollar collapses.

Thu, 10/07/2010 - 17:22 | 633728 Slartebartfast
Slartebartfast's picture

so why keep buying gold at 1300.. when you'll probably be able to buy it at 500 before the dollar collapses.

Listen to what's coming out of your pie hole for a second.  Buy gold for 500 what?  Dollars?  No way buddy.  The dollar is going to zero worth.  Nothing!  You say it yourself.  Gold will be worth something.  Dollars - nope.  I know of a guy that bought a 40 acre ranch during the great depression for 4 ounces of gold.  "But gold was confiscated!"  Only from the stupid and lame.  Those with sense flipped of Frankie the Limper and kept their gold.  It was worth PLENTY in private barter, and it will be again.  So stuff your mattress with your dollars.  You can use if for toilet paper later.

Thu, 10/07/2010 - 10:30 | 632080 firstdivision
firstdivision's picture

I will tell you what gave, it was the markets connection to reality.  Fed manipulation equates to a correlation of 1 on everything.

Thu, 10/07/2010 - 09:59 | 632028 frankTHE COIN
frankTHE COIN's picture

I'm going to get into my Fiat and drive across country.

Thu, 10/07/2010 - 10:06 | 632044 snowball777
Thu, 10/07/2010 - 10:00 | 632032 Jeffrey Lebowski
Jeffrey Lebowski's picture

Im patiently waiting for the MERS system to blow itself, and the securitzation business to hell.... I mean, how can it not ? 

I can seen invetsment bankers swinging from lamp it just me ?

Thu, 10/07/2010 - 10:18 | 632050 snowball777
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They pissed on YOUR RUG?!

Thu, 10/07/2010 - 14:50 | 633205 Greyzone
Greyzone's picture

No, they committed crimes, including, if you bother to open your eyes and look, aiding and abetting Al Qaeda in avoiding US laws intended to deny financing to that organization. So they've not only committed fraud, they've actively engaged in treason and assisted in the execution of American troops abroad. You can argue all you want about whether we need to be over there or not (I'd prefer not) but legally, under the law, assisting the enemy is treason and the potential punishment for treason is death.

So yeah, let's hang 'em all and let God sort 'em out.

Thu, 10/07/2010 - 10:01 | 632035 snowball777
snowball777's picture

Fuck securitization. When it morphed from a way to spread risk into a way to HIDE risk, it became a (pun!) liability.

Thu, 10/07/2010 - 10:52 | 632141 Careless Whisper
Careless Whisper's picture

illegal foreclosures are... illegal

Thu, 10/07/2010 - 10:02 | 632036 43 Steelie
43 Steelie's picture

It's a stretch to call Tepper "brilliant".

"Savvy gambler" or "Ballsy trend spotter" are far more accurate. 

Thu, 10/07/2010 - 10:14 | 632046 Hype Alert
Hype Alert's picture

Speaker Pelosi and several associates called on the Justice Department and other regulators that the banks be “held accountable for their practices”.

Hey Pelosi, here's an idea...  let's hold congress accountable for their actions!

Thu, 10/07/2010 - 10:22 | 632055 snowball777
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Isn't this approach a bit biased in favor of Pugs, since they haven't been big on 'actions' lately?

Except for possibly turning out Rangel to pay his debt to society in the East Village as a tranny hooker, what did you have in mind?

Thu, 10/07/2010 - 10:37 | 632094 Hype Alert
Hype Alert's picture

Rangel is a great example of corruption in the system.  A tool with one last purpose.


I'm for returning to the foundations of the country instead of this self-serving bunch and if that means, and it probably does, removing everybody and replacing them I'll start in November.  It's not a lost cause yet, but it's getting close.

Thu, 10/07/2010 - 10:20 | 632051 goldmiddelfinger
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Thu, 10/07/2010 - 10:22 | 632059 pemdas
pemdas's picture

"...I think productive assets are better.
He suggested commodities, especially the precious metals."

Gold a productive asset?  You lost me there.

Thu, 10/07/2010 - 10:23 | 632061 Hype Alert
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Why are people only talking about foreclosures??  If the banks can't foreclose on the property because of an unclear title/paper trail, why should anyone make more payments on their mortgage?  The problem isn't just with foreclosures, it's everything that's been through securitization.  The foreclosure process is just exposing that most mortgages are toxic.

Thu, 10/07/2010 - 10:24 | 632064 centerline
centerline's picture


Here it comes.  No wonder there has been a media blackout on mortgagegate.  

Thu, 10/07/2010 - 10:31 | 632083 centerline
centerline's picture

As speculated on here, this mortgage/securitization fiasco could very well be the next "tanks in the street" situation.  Guaranteed that the banker gun is to the head of our corrupt politicians right now.

Thu, 10/07/2010 - 10:36 | 632092 centerline
centerline's picture

This crap is going to either going to go big or go out with a whimper.  The outcome will depend solely on whether or not our legal system has any shred of integrity left.  Or if it is as captured as the balance of the system.  The wildcard here is that most lawyers are the same middle-class folks that are taking a beating.

Thu, 10/07/2010 - 10:36 | 632096 Kina
Kina's picture

You have to think there will be point at which Americans will object to being ganged raped in turn by Banks and Congress.

Congress seems quite happy to sell Americans down the drain so long as their bribe-masters are kept in the money.

Hope they televise the revolution.


Thu, 10/07/2010 - 10:58 | 632163 Thunder Dome
Thunder Dome's picture

Ignorant public is the problem moreso than the banksters and politicos.

Thu, 10/07/2010 - 10:59 | 632169 Rusty Shorts
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WTF, these scumbags can rot in hell.

Thu, 10/07/2010 - 11:17 | 632229 aheady
aheady's picture

I can't take any more of this shit.

Thu, 10/07/2010 - 10:40 | 632082 His Dudeness
His Dudeness's picture

1st time, short time.

Those math problems are TOUGH!

Bring the junk...

Thu, 10/07/2010 - 10:37 | 632103 Robslob
Robslob's picture

This makes perfect sense too me if you think it through.

1) Allow rapid fire foreclosures

2) Banks take properties

3) QE 2.0 will provide funds for speculation on low cost housing

4) Banks "cover" their losses buy selling to property speculators

5) People get screwed.

This event could actually "delay" QE 2.0 as banks need those speculaters...maybe I am wrong?

Thu, 10/07/2010 - 10:44 | 632124 Restcase
Restcase's picture

If the banks can't foreclose on the property because of an unclear title/paper trail, why should anyone make more payments on their mortgage?

If you paid off the mortgage, you'd get title. If there's a clear enough paper trail to give title, then this current legal situation is just a hiccup.

If titles are seriously fouled, however, may I suggest an exciting new career in title lawyering? 

After the Mexican War, there was a parallel gold rush of title lawyers to California and they did very well for the rest of their lives. IIRC Pres. Buchanan appointed Edwin Stanton AG because of his expertise in land/title law and the need to manage the overwhelming backlog of cases.

Thu, 10/07/2010 - 14:07 | 633003 blindfaith
blindfaith's picture

If your mortgage was created in the last 10 years, it is likely that it was chopped up and is inside many CDS. 

Theproblem exists for the guy who pays off the mortgage... be it a sale, short sale, or payoff...if every party who has a slice of that notedoes not sign off, the title is NOT clear.  The same "robo-signers" signing the paperwork in question are signing the paperwork for all the good standing mortgages too.   They have no idea if all parties are signed-off, nor do you, the buyer, or real estate agent, or the title company.  ANY paperwork recorded in the public records which is not traced and verified as a "sign-off" is a cloud on the title, and it can show up at any time now or in the future.  Make no mistake, this is what makes third world property such a danger to buy.

Don't be surprised if you start seeing the Banks issuing a disclaimer that they can not verify the accuracy of the 'sign-off', and that in turn means the title can not be transferred with all rights defended ( aka warranty deed).  Next step is a 'special warranty or masters deed' issued by a judge or sellers quit claim deed, neither of which is a quality deed and defendable.

The political powers need to make some serious examples out of the banks involved. Where is the Department of Justice and the FBI...this is interstate fraud. This is not just about money scheems this time, it is about the fundamentals of LAW, filing false documents, lieing to judges, and selling property they do NOT legally own.

Thu, 10/07/2010 - 10:49 | 632132 Ratscam
Ratscam's picture

@ El Duderino

more private lessons in math or another white russian?

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