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Pimco, Blackrock And New York Fed Said To Seek Bank Of America Mortgage Putbacks
Putbacks, bitches! This headline that has just flashed, can not be right. Otherwise it would mean the New York Fed (and Bill Gross) is preparing to sink Bank of America with hundreds of billions of par MBS putbacks. It would however explain why PIMCO has been gobbling up MBS on margin in the past month as we highlighted. We will bring you more as we see it, because this could be a groundbreaking development.
Update: Blackrock joins too! The "soured mortgages" in question amount to $47 billion (to start). We are now just waiting for BofA to next demand TARP 2 and the circle jerk will be complete.
Update 2: Full Bloomberg story attached.
Reminder: Here is JPM's presentation on what the total putback risk is for the Big Banks. As the lawsuit seeks to putback $47 billion one wonders just how accurate JPM's estimate of a $55 billion max pain truly is...
Reminder 2: As our whistleblower pointed out earlier today, the issue of misrepresentation of all mortgage related items (not just titles) is precisely what would destroy the mortgage originators and servicers. Today, Countrywide, its former orange CEO, and Bank of America are the first to realize just how correct he or she was.
Pacific Investment Management Co.,
BlackRock Inc. and the Federal Reserve Bank of New York are
seeking to force Bank of America Corp. to repurchase soured
mortgages packaged into $47 billion of bonds by its Countrywide
Financial Corp. unit, people familiar with the matter said.The bondholders wrote a letter to Bank of America and Bank
of New York Mellon Corp., the debt’s trustee, citing alleged
failures by Countrywide to service the loans properly, their
lawyer said yesterday in a statement that didn’t name the firms.Investors are stepping up efforts to recoup losses on
mortgage bonds, which plummeted in value amid the worst slump in
home prices since the 1930s. Last month, BNY Mellon declined to
investigate mortgage files in response to a demand from the
bondholder group, which has since expanded. Countrywide’s
servicing failures, including insufficient record keeping, may
open the door for investors to seek repurchases by bypassing the
trustee, said Kathy Patrick, their lawyer at Gibbs & Bruns LLP.“We now are in a position where we have to start a clock
ticking,” Patrick, who is based in Houston, said today in a
telephone interview.MetLife Inc., the biggest U.S. life insurer, is part of the
group represented by Gibbs & Bruns, said the people, who
declined to be identified because the discussions aren’t public.
TCW Group Inc., the manager of $110 billion in assets, expects
to join BlackRock, the world’s largest money manager, and Pimco,
which runs the biggest bond fund, in the group, the people said.Countrywide also hasn’t met its contractual obligations as
a servicer because it hasn’t asked for repurchases itself and is
taking too long with foreclosures, either because of document or
process mistakes or because it doesn’t have enough staff to
evaluate borrowers for loan modifications, Patrick said. If the
issues aren’t fixed within 60 days, BNY Mellon should declare
Countrywide in default of its contracts, she said.Trustee Duties
“The letter states a demand directed to Countrywide to
cure the defaults,” said Kevin Heine, a spokesman for BNY
Mellon. “It does not ask BNY Mellon to take any action. BNY
Mellon will continue to perform its duties as trustee.”Charlotte, North Carolina-based Bank of America will
“defend our shareholders” by disputing any unjustified demands
it buy back defective mortgages, Chief Executive Officer Brian T. Moynihan said today.Most claims “don’t have the defects that people allege,”
Moynihan said on Bloomberg Television, referring to so-called
putbacks, in which guarantors or investors in mortgage-backed
securities ask to return bad loans. “We end up restoring them,
and they go back in the pools.”Mark Porterfield, a spokesman for Newport Beach,
California-based Pimco, Brian Beades, a spokesman for New York-
based BlackRock, and Peter Viles, a spokesman for Los Angeles-
based TCW, declined to comment.John Calagna, a spokesman for New York-based MetLife,
didn’t immediately return messages seeking comments. Jeffrey V.
Smith, a spokesman for the New York Fed, declined immediate
comment.“We continue to review and assess the letter, and have a
number of question about its content, including whether these
investors have standing to bring these claims,” Bank of America
Chief Financial Officer Charles H. Noski said today on a
conference call with analysts. “We continue to believe the
servicer is in compliance with the servicing obligations.”
»
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I guess its time we stop ignoring the 350-lb gorilla...
http://www.nbcactionnews.com/dpp/news/local_news/destructive-chimpanzee-...
Does Bernanke shower with the 800 lbs gorilla?
It a#% f*&@! him 24 / 7 so what do you think?
A golden shower by an 800 pounder equals what in gallons ?
4, if it is leveraged correctly.
Seems the story was timed well so as the Bloomberg vs Federal Reserve Freedom of Information lawsuit story gets little press. Deadline was today ( OCt 19th ) for an appeal to the U.S Supreme court.
"On August 27, 2010, the court agreed to delay implementation of the ruling until Oct. 19 so that the Fed may appeal to the Supreme Court."
Has anyone heard an update on this.
Maybe after the Fed offloads the acidic waste to the sinking barge, its balance sheet will be squeaky-clean.
What I read said 60 days from Aug. 27. Very soon. when this Fed liquidation happens, it will be worse than the world has ever seen. When the dollar no longer pays for the worlds oil the USA will roll back 140 years in a weeks time.
Yes, and speaking of oil, In a scant few months none other than IRAN will be the presdient of OPEC, for the first time in 30 some years.
And, lets also not forget that our tax dollars pay for OUR MILITARY to guard the tankers as they plow the seas to all ports of call not just our ports ( add that into the cost of gas and suddenly we pay more that anyone in the world).
Sorry to get off the subject of BOA, and who will be loosing an account holder as of today.
Did someone say something about 2012 being "the end" ?
http://www.adultswim.co.uk/videos/harvey-birdman-attorney-law/death-row
350-lb gorilla, hell its growing over 8 stories tall now and 40 tons at least!
How long until MSM picks this up?
Not until after the spin cycle is complete. You will hear either a buzzer, or a chime.
But now, the Washington Post reports Federal law enforcement officials are examining whether financial firms may have broken the law when they filed improper foreclosure documents with courts, sources familiar with the probe say.
Put...ze mortgage...BACK!!
http://www.youtube.com/watch?v=sO3qJGKs9gw
Win Smith to Ken Lewis and Stan ONeal,
(GM assemblyline worker who got his Harvard MBA on affirmative action and was recruited for $200 M to lose MER et al $12 B.)
Payback's a beech...
http://news.newamericamedia.org/news/view_article.html?article_id=dc1d65...
Hilarious stuff LOL
I guess if it buzz's than Europe implodes or if it chimes then China may self destruct.
Lookie there, Ma, them fellas, Fed NY, BlackRock and PIMCO's whose never of met before a-playin' so good togeitner.
OK. Who called who, first?
Hey, where's Goldman? They're usually good for a poke at the Fuck-yer-Buddy stump.
Why just BofA, what about the rest?
I would think if B of A goes, they all go. Especially Wells. They were in there duking it out with Countrywide on the rate sheets every day of the week. So let's say, they have some bad loans and sold a bunch too.
It'll come, but it'll be fine.
BofA will just flick through it's assets and get all counterparties to rep any 'assets' based on the value of MBS it holds and everything will realign itself in a nice ordered way.
What could possibly go wrong?
I foresee the BarristerFuck of the Century...
Whew! Looks like its safe to be on the streets of Kansas City again.
http://www.nbcactionnews.com/dpp/news/local_news/destructive-chimpanzee-...
awesome, try this one: banker cull
http://www.youtube.com/watch?v=rqn2xRXDl54&NR=1
for those that never saw their classic: Bird and Fortune,
http://www.youtube.com/watch?v=mzJmTCYmo9g&NR=1
I know that neighborhood well. I am surprised none of the locals shot the chimp.
If (s)he'd been in a pinstripe suit with a briefcase, they might have thought it was a bankster...
The first line cracks me up
http://www.cnbc.com/id/39686897
You should never take financial advice from a Carney.
Oh yeah? How about this gem:
"The put-back crisis is not driven by economics. It is driven by legal rights. And there’s simply zero probability that the politicians in Washington are going to let Bank of America or Citigroup or JP Morgan Chase fail because of a legal issue."
Kind of hits you in the po-po doesn't it?
Read it one more time.
Guess FinReg No more Too Big to Fail just so much more unread feelgood legislation raising more taxes...
Amazing, isn't it.
The MSM feels completely comfortable in just coming out and saying, "The law simply does not apply to the Wall St. Banks. Deal with it, SHEEP!"
That's true now. I don't know if it will be true when the new Congress is seated.
Pimco knows what's coming in QE2, know's that the Fed will be forced back into MBS's. They are quite certain the Fed will pay them off by making good BofA's liability. Sooner or later this theft from taxpayers by insider pigs is going to piss off someone who matters.
Shit, legal rights live in America's outhouse since the GM/Chrysler bondholder lynching. Where is that sneaky ass Rattner, anyway...?? He'll fix this if he's not in jail yet.
Actually, this piece is unusual for CNBS in that the advice to buy BA is based on unadulterated cynicism. The guy may be right, unless the Tea Baggers suddenly get a clue about who who is really screwing them . . .
Swaggering cynicism dressed as mature realism.
There is no doubt that JPM is heavily involved in selling these MBS's. Therefore its only fair that the NY Fed , and Federal Reserve also sue JPM, along with a host of other banks. Fortunately for JPM, this is a selective process , and they are in the inner circle of friendship because as most people know , JPM and the FED are essentially tied at the hip. The corruption on Wall Street never ceases to amaze me.
I call this foreclosure crisis the Mill Wars, representing the mortgage loan mills, the MERS securitization mill, and the foreclosure mills that have forged the weapons of our own demise. I compare the tactics of the TBTF banks with military warfare. They have planted bombs in the housing market and their effects will be as powerful as the assault on 9/11.
The TBTF banks have not been alone in their actions. Every step of the way the US government, regulators, GSEs, the Federal Reserve, and Congress and its passage of laws that deregulated or interfered with the capital markets have contributed to the economic crisis.
For the last 30 years, the economy and GDP numbers have been a sham. We’ve seen the offshoring of jobs, dismantling of domestic manufacturing, monopolizing farms and food production by major corporations, stifling development of alternative fuels and vehicles, and the dumbing down of our children. All of these processes have deteriorated our economy, degraded the physical infrastructure of our towns and cities, and drained the brain power of the next generation.
The TBTF banks have been able to get over on the working class and upper middle class by possessing proprietary information, knowledge that we don’t have.
It is in the attempt to close this gap that I’d like to examine the debt-based monetary system and the Uniform Commercial Code that governs our economy. We have been kept in such profound ignorance or rather in a state of blissful apathy about basic concepts of money and debt that we are unable to manage our commercial affairs. We have made ourselves the perfect mark.
Let’s start with the definition of the word money under the law. Money is a currency of gold or silver with an intrinsic value or a paper bill backed by gold or silver. In the United States all bills stopped being backed by gold and silver in 1933. From the time FDR ordered that all gold was to be collected from the people, it would be a crime henceforth to request the discharge of any debt in gold or silver. Only silver or copper coins retained some intrinsic value of the metal after 1933.
Enter Modern Money Mechanics
The book Modern Money Mechanics posted at the Federal Reserve was graciously written by the Chicago Federal Reserve Bank to help people understand the concept of money. My first criticism is the disingenuous use of the word “money” within its pages. The Black’s Law Dictionary clearly states that “money” is backed by gold and silver. Not many people living today have ever had any “money” in their pockets. But in the Fed’s writing, the word money is used inaccurately and interchangeably to refer to debt-notes. We have had debt-notes since 1933 and their creation is based on something completely different from money that circulated in previous centuries.
The general use of the word money encourages people to consider money as it existed 300 years ago. That is precisely the kind of confusion that the Federal Reserve is trying to propagate. There are a whole set of paired legal words that describe transactions in a money and in a debt-based monetary system. These are: money/debt-note, buy/purchase, pay/discharge, and so on. These pairs are defined by law because they make an important distinction between true ownership and right of use privileges.
For example, an individual in northern Spain in 1790 would pay a sum of money in gold or silver to buy a piece of property. The property was owned exclusively by the owner. He had allodial rights, a king of his castle type of right, in which no government could dispossess him of the land, regardless of other debts that might have been due. No property taxes were ever assessed.
In a debt-based monetary system such as ours, we use debt-notes to “purchase” property. However, we have acquired only right of use privileges. The real property doesn’t belong to us. We must send in a yearly property tax (tribute), and any city, county, state, or federal agency can place a lien against the property at any time if a claim is presented against us. The land becomes forfeit. We are so brainwashed into thinking this is the only way of holding possession. Nobody questions the reasons why.
Modern Money Mechanics provides a clue to the little power debt-notes have to secure and hold real property or any personal possessions.
What Makes Money Valuable?
In the United States neither paper currency nor deposits have value as commodities. Intrinsically, a dollar bill is just a piece of paper, deposits merely book entries.
Coins do have some intrinsic value as metal, but generally far less than their face value.
Modern Money Mechanics
Are you willing to concede that all the work you do and the debt-notes you receive in exchange are worth nothing? Any logical person observing the world would register a disconnect between the physical and mental labor exerted in the economy and refuse to be renumerated in a fiat currency that has no value. This is the first deception that we have accepted from the Federal Reserve Bank.
A crack in the illusion begins to appear. Most people are still using the concept of money that existed 300 years ago. The vocabulary we use in referring to money is completely confused, and purposely so. The law makes a strict distinction in vocabulary. And that vocabulary makes a powerful distinction in property title and ownership between either buying with money or purchasing with debt-notes.
This is the big advantage for the bankers that opened the door to usury and outright theft of the life productivity of all Americans for three generations. The passage of the Federal Reserve Act of 1913 cemented our fate.
Let’s give a tiny example of the dialogues going on in courtrooms all over the United States. In this example, the defendant only has a partial understanding of his commercial affairs and the courts.
San Jose, California County Court House circa 2007
Judge: State your name.
Defendant: John Smith.
Judge: Do you swear to tell the truth, the whole truth, and nothing but the truth.
Defendant: I do.
Judge: You entered into a mortgage contract with Bank of America in 2003.
Defendant: Yes, but the bank doesn’t have the mortgage note. I’m not the person who should have to pay off the loan.
* * *
The judge would find the defendant in dishonor with the court. Why? The defendant confessed to being a fictitious corporation and placed himself immediately under the judge’s jurisdiction by stating his name. The word name in the court refers to a corporation.
The defendant swore to tell the truth, but in an equity court there is no truth to tell, since there are no eyes to see, or ears to hear. Two corporations are interacting.
The mortgage contract binds the defendant as a DEBTOR to the bank. The DEBTOR has no recourse, because at law he holds a diminished capacity to handle his own commercial affairs.
The defendant is openly stating in court he is not a fictitious corporation with the phrase “ I am not the person.” And yet he just stated his name.
The defendant has refused to accept the claim for value in violation of the currency laws. Under the UCC, every claim must accepted for value and returned.
The defendant has created a controversy, thus placing himself in dishonor with the court again.
The defendant used the word “pay,” when there has been no money in the United States since 1933. The legal term for debt-notes is the discharge of your debt.
One slip of the tongue in regards to your commercial affairs in court and you are a goner. Standing in front of the judge the defendant appears like a raving lunatic from the judge’s legal perspective. The judge reasons correctly that the defendant is confused about the debt-based monetary system and has no understanding of the Uniform Commercial Code. The judge has no other choice but to find the defendant guilty, and the house is foreclosed.
Your head should be spinning by now. You may not know the correct vocabulary. Your debt-notes aren’t worth anything. And you as a debtor are stripped of your labor.
Wake Up Call
Everything you think you know about mortgage loans, debt-notes, and the law is a sham. Maybe you’ve been a DEBTOR, a ward of the legal system your entire life. You don’t have the basic vocabulary to discuss your mortgage loan problems or present them in court correctly. Individuals who file Pro Se proceedings often times get their butts kicked from here to the moon. This is a control tactic to make sure the high priests of the law, the lawyers, continue to make gobs of money and lead as many DEBTORS into dishonor as possible.
Why is it that every foreclosure case is different? What happened to equal application of the law?
I’ve read the posts on zerohedge filled with the moral outrage “You have to PAY back your mortgage.” About people who want to shoot first and ask questions later. These are all delusions and crazy behavior about a problem they don’t comprehend. There are a few rare voices who come in asking questions—like where did the money come from? Do you understand the Contract Law? They are cryptic and won’t elaborate much. This is because we are in a war, and it is dangerous to set people straight on what is going on in the banking system and the Uniform Commercial Code. Yet all the information is in plain site.
What is a mortgage loan? How is it created? These are questions that people have been groomed to ignore. They think they know what a mortgage loan is. But they don’t know what they don’t know. The devil is in the details.
This is an asymmetrical war. The PTB have the ammunition like the massive mortgage mills that can spew out thousands and thousands of mortgages per month all over the country. They have the escrow companies to process all the paperwork. They have the MERS system to support securitization of the mortgage contracts. They have automated tools to upload UCC 1 Financing Statements, streamlined directly into the UCC online filing systems. The county clerk recorders process all their Affidavits and reject the Affidavits of the people responding to demands. They have the foreclosure mills to handle thousands and thousands of foreclosures per month, which go through the courts in judicial states or just spit out paperwork for the non-judicial states. The PTB are mobilized and in tight formation.
The response from the every day man caught up in the war is haphazard. It remains a one by one operation to get papers in order, either Pro Se or with a lawyer.
The DEBTORS don’t have any mills to defend their positions. They are confused and scared of being stripped of their life savings. I’ll rely on the Pareto principle that states 80% of the effects are generated by 20% of the causes. It may be that 20% of the people acted irresponsibly in getting loans. Some of them suffered some unfortunate setback out of their control that made them unable to “pay” their mortgages. But technically, anyone with a mortgage is effected by this mess and that includes all homeowners in the United States whether their houses are “paid off” or not.
Then there’s the outright scammers – the phoney refi companies, debt reduction companies, patriot solutions in commerce websites that spring up to provide a hope and a prayer that gets DEBTORS into even more trouble.
Some lawyers get relief for their clients by getting them a new loan or negotiated dissolution of the contract, but most individuals are burnt at the stake for presuming they worked for a living, paid hard-earned dollars to maintain the mortgage over many years, and think intuitively that they should not be stripped of their assets. Most people feel very guilty for not fulfilling their contracts. That is why so many people just walk away. They don’t have a response to the onslaught of foreclosure and social ostracism.
We, as the slaves, are trained to believe in the morality that our masters hand over to us. It is all to their benefit. Haven’t any of you ever read Nietsche -- The Genealogy of Morals? The masters know that they can steal from us so much the better that way.
The Mortgage Loan Defined
Why is everyone so cocksure that they know what a mortgage loan is? How are the funds created to make the loan? Who owns the funds? The mortgage loan is the second great deception from the bankers.
Let’s go back briefly to the Modern Money Mechanics posted by the Federal Reserve. But first it’s important to review a basic rule about accounting and bookkeeping.
All bookkeeping is based on a principal called double entry. You have your debits and credits. The debit side represents your surplus “money” that you have asked the bank to hold for you. The credit side represents your liabilities. And in double accounting, the balances must match eventually. So you would move a debit amount over to the credit side of the ledger to balance the account in order to pay your debts quite literally. This is how money was treated 300 years ago and all the way up to 1933 in the western world.
Today, we have debt-based money. Every debt-note comes into existence by borrowing from the Federal Reserve. When you apply this concept to the balance sheet, the debt-notes are piled up on the credit side of the ledger. And discharge of the debt moves the amount from the credit side to the debit side. Read the instructions to the bank requesting “payment” on the Standard Form SF5510 posted on the GSA forms website. This is a big clue that you may not be on solid ground when it comes to debt-notes and mortgage loans.
Here’s my quote from Modern Money Mechanics that I’d like you to absorb.
Then, bankers discovered that they could make loans merely by giving their promises to pay, or bank notes, to borrowers. In this way, banks began to create money.
Modern Money Mechanics p. 3
Let me distill it down. The banks give you no consideration (no matter of substance). They give you a promise to “pay." In other words, the bank gives you debt-notes, which they defined in previous paragraphs as having no value.
Further on, Modern Money Mechanics describes what the bank receives when it makes a loan to expand the M1 money in circulation.
If business is active, the banks with excess reserves probably will have opportunities to loan the $9,000. Of course, they do not really pay out loans from the money they receive as deposits. If they did this, no additional money would be created. Modern Money Mechanics p. 6
What they do when they make loans is to accept promissory notes in exchange for credits to the borrowers' transaction accounts. Modern Money Mechanics p. 6
The banks don’t lend their money or the other funds of depositors. That seems clear. What do they lend on? The promissory note that you sign is a creation of debt-notes, since under the UCC we are transmitting utilities and an accomodating party. This creation of debt-notes is a liability to the bank and placed on the debit side of its balance sheet, because the bank owes you for your signature.
And this liability is offset by the credit deposited to the borrower’s account. Where is this credit coming from? Remember the double entry?
The credit deposited into the borrower’s account is the credit from the borrower’s exemption (credit) account at the US Treasury. The borrower is creating the debt-notes and the bank is receiving credit, a commodity of substance (labor) to discharge and balance out the accounting at the bank. All this goes on right under the borrower’s nose. It is even documented in Modern Money Mechanics, but no one in the general public has deciphered what it means. Then, the bank withholds your credit.
Every debt-note in existence is borrowed. And the borrower is the principal and owner of the credit under the Uniform Commercial Code. However, the borrower is also the DEBTOR and surety of the monetary system. He has no standing to manage his commercial affairs until he files a UCC 1 form claiming himself as the CREDITOR with a security interest in all the assets, real property, debts, liens, marriage, children, and body of himself, the DEBTOR.
Mortgage Loans in Layman's Terms
First, the banks don't lend their money or the deposits of their clients. They access YOUR credit in your exemption (credit) account at the Treasury. Under the Uniform Commercial Code, the principal is the owner of his own credit.
Second, the banks withhold your credit. When you sign the loan application, the application is presented to the overnight lending window at the Fed and the bank gets your credit. But they don't tell you. They lead you into signing another set of papers, the promissory note. This makes you promise to pay them back for YOUR credit plus interest for the life of the loan. In addition, they make you agree to put up the home as collateral for the loan.
The characteristics of contract are: Offer, Acceptance, Intention, Equal consideration, Genuine consent (knowingly and willingly), Meeting of the minds, full disclosure of the terms and conditions.
The bank has no consideration in the contract. It forced unequal consideration by collateralizing the home.
The mortgage loan was a complete fraud, since the material terms and conditions of the loan were not disclosed.
The banks file a 1099A form 3 years later claiming that you abandoned your credit without your knowledge or consent. The banks are stealing credit at that point.
The banks take your credit and leverage it up 9x. They are required to report interest earned from these loans on a 1099OID form. They never report their taxes and are tax evaders. In fact, they have evaded taxes at every step of the loan, securitization, and foreclosure process and avoided paying the recording fees to counties across America for the assignments in the great mortgage musical chairs game.
You are the principal and owner of your credit. However, you are unfit to manage your commercial affairs if you do not file a UCC 1 Financing Statement correctly.
You can get back the interest earned on your own credit by a process called Recoupment under Article 3 of the Uniform Commercial Code.
Here is the rub. This part of the Uniform Commercial Code is not taught to the average individual. But you can bet that the banks are busy perfecting their liens and using other people's credit. Not only do the banks do this, but every employer, insurance co., assisted living provider, doctor, hospital (who knows something about all this), plus every city, state, and federal agency is dipping into your credit.
Here is the new meme: There is no money, and there is no debt. There’s only debt-notes and the discharge of debt.
In a debt-based monetary system when you get a fiat mortgage loan, you have to discharge the debt with more paper. That is why I am preparing the discharge of debt for the home that I’ve paid off with cash.
Only the discharge of debt through the exemption (credit) account at the US Treasury is an exchange of commodity value (labor) for the home. So all you people out there with mortgages that think that you’ve “paid” off your loan better stand at attention and discharge your debt.
In Asymmetrical Warfare in the Mill Wars Based on UCC Practice Part II, we'll look at the processes to perfect your security interest in the DEBTOR's property and discharge debt as it applies to the Uniform Commercial Code.
@Kayl ... Wow! That was awesome.
Wash, rinse, & repeat.
Now, to the article.
... not what people allege? ... no, no, these aren't the problems ... read -> it's so much worse.
... they go back in the pools <- WTF
... the matrix of BS continues to work (or so they would have the investors believe) ... until it doesn't.
thank you for taking the time to write such an invaluable, care-fully crafted post kayl, for expanding on what you've been saying for a while now, and giving us the tools to a deeper understanding of just how in the dark we've been kept all our lives.
daunting, but the pursuit of truth is its own reward.
all the best to you.
Thank you, but be part of the solution, get educated. File your UCC 1 correctly and as soon as possible.
Yesterday Kayl, I wrote the below in the thread of 'Inside the Illusory Empire of the Banking Commodity Con Game'.
You are awesome and just what my ears and eyes lamented for. Thanks mucho! Keep up the great work. Looking forward to your next contribution.
"Words that speak to the omnipotence of the Fed and their handlers. Groveling and murmuring partial secrets of the ultimate conman who has God-like qualities. So much intelligence here at Zerohedge, but so little who speak about this particular subject with fortified authority. Unbalances me and dangerously increases my need for satisfaction when I find myself restricted from embracing and understanding the boogieman's specific nature.
My arrogance is bruised.
The WHY is easy for me, but come on...
WHO, specifically, are they? WHAT are the hidden rules of the con?
WHERE does the world find them?
Is there a one of them who has defected from their ranks?
The best I can do is walk by the three card monte and refuse to play? When I see a scam it infuriates me. I hate to admit it, but it's because it lights an inferno against my ego.
Is the only way to fight their con, their unbridled evil, their true and unparalleled rebellion a change of soul? Where is the fun in that?
Sometimes I find myself angry that I'm not one of them, even though its the last thing my spirit would allow. My arrogance rivals theirs. Their knowledge I covet. Their soul I understand.
And to contemplate, if I can't grasp what should be a simple con because of the collective cognitive dissonance (including my own) that resides here, then what else of importance am I blinded to? What can't I see?
It shouldn't be so hard. You see I know I'm blind, so I scrambled clumsily up to the mountain top. Someone shout back to me."
I think it's time to adopt the means and the measures of the Foreclosuregate. OK, it posted up above here. The same article is over on the contributors page:
http://www.zerohedge.com/forum/asymmetrical-warfare-mill-wars-based-ucc-practice
Well, it explains the crunching of BAC/XLF!!! Yuk Yuk Yuk!
Is this the beginning of cannabilization of the big boys by one another we have been predicting would be the only outcome since retail has been walking away rather than taking over to be left holding the bag?
It could very well be. In any rate, it's refreshing to see RED in all the right places.
We can only hope . . .
Cannibalization will be full on:
Bank Of America Is Getting Sued By A Company That's 34% Owned By Bank Of America
http://www.businessinsider.com/blackrock-suing-bank-of-america-2010-10
Classic. Will they ask for 34% more in damages?
Brilliant, let me guess, they shorted the market yesterday as well.
hmm... Anyone buying SKF?
Every time I stick my toe in there, it gets wacked good! Think I'll watch a little while longer.
I'm sure the size is of meaningless quantity. E.g., it's going to be a $20m put back just so FRBNY and Bill Gross can say to their shareholders "Hey look, we're looking out for the little guy!"
kinda like FDIC's gift to the banks today...
nothing to see here folks, the recession is *still* over...
Gross has got a pretty decent sized blood funnel himself...wouldn't underestimate...
LOL
I'm not so sure they could get away with just caving to a "few" of the suites without having to cave to all that were similar.
So they can each go through their toxic portfolio and demand reimbursment for each other!
Le FREAK, c'est chic!
STOCKS CRASHING!
PMs too baby. Wonder if it is deleverage time?
Woohoo, goin down, ground floor, menswear...
Dollar testing top of range. I expect that if it breaks, and monie begins to pour into the dollar, monie will begin to pour into gold as well. This could end badly for stocks; I expect the PPT to step in here, but I have a bulls-eye on financials.
Over thousands of years, it is well documented that the power-elite make money two ways: (a) loans; or (b) repossession. Nowhere does destroying the value of their underlying assets via hyper-inflation enter into the equation.
We are not going to see QE; rather, we have seen the top. Now it's time to collect & scoop up assets for micro-pennies on the dollar. Crushing the banks, while knowing there is no longer any political support for son-of-TARP, is just the opening salvo.
Never forget that the power-elite were made whole with $25T of $USD and equivalents. They are sitting pretty just waiting to step in & buy. The media is the key - why are these events happening now and why are they being reported? Well, buy they shall once this mofu is driven off a cliff.
OK so this power elite you call them (which make them sound like GawD) they have ingeniously reiterated QE2 by a pack chant sans Bernanke, and now they will not pull they trigger, and they do not need to because Bernanke never said the majikal words, "QE 2 has commenced". So I guess that what was priced in (if anything was priced in) will now be lobbed off of the top for one last pillaging. Ok, but what is there left, is the corpse not done? There is no blood left. And as if in a nightmare, the corpse may tie a french flag to its back and march down these who are powered by their self ordained eliteness. If you are right, and then the Fed is not just out of bullets, it is game over. And what will they do with their elite assets? Share them at for elite only parties?
And I know, the banks are full of cash, and they want to buy low, but tell me what they will buy? Dollars? Tungsten on reserve at the comex? Stocks of the fascist/corporate state? Bonds of the fascist/corporate state? What is going to make them money?
And if this has to do with gold being cheapened one more time, bring it on! Gold ain't moving below $1250, so if there is one last desperate act, lets start the show. The villain will soon be revealed.
Apparently, a majority of posters @ ZH believe in a weak dollar outcome. The only problem with that scenario is that it makes our ME mission objectives that much more difficult. Right now, we utilize a combination of force & persuasion to control the precious lifeblood. However, if the $USD were to substantially lose its store of value, we would have to take a more brute force approach.
The problem with focusing primarily on the Fed and domestic funding issues, whether it derives from the banks and/or public entitlement requirements, is that it fails to consider larger global trends & events. But as Spalding says below, he blew this thesis out of the water long ago and now merely skips my various musings & postings.
However, it might behoove others to perhaps consider that a weak dollar automatically throws us into default: who will continue to sell to us for little pieces of paper? I know many are committed to PMs, but it's a risky game betting against leviathan.
Or we replace our largest import (the dollar) with a new one; hemp for example, as in hemp oil, or maybe the kind-Amsterdam got nothing on the Left Coast. Then on the back of that, and our fields of cotton and organic food, maybe we could become rockstars again. Destiny is not going to change, but the timing might. We do not choose our destiny, but we always choose our timing.
And we can not make a brute force approach without oil, so we shouldn't even try. It would unravel everything and we might as well try and make amends with the other nations of the world. I bet if Barry Obama had told Ahmadinejad he would look into the September 11th bombing, it would please many nations-presumably the Japanese considering a Prime Minister brought the film ZERO" and showed it to the EU parliament. But does he? No. He watches ESPN and shoots hoops before dinner.
Look, I know, the rest of the world would be waiting to pounce if the dollar lost its reserve status. Let them. Then once everyone realizes that tranche to tranche ain't nothing good, and we can remake this world already! It has been stewing for long enuff! Dinners served.
LH, I enjoy these reasoned exchanges. Two points:
One, there is no replacement for oil. None whatsoever. Even nukes would only supply electricity, not transportation nor fertilizers. (Both critical for food stuffs and other energy derivatives.)
Second, once you understand the true import of number one, then assertions like these:
Fail to consider just what is at stake. Why did Hitler commit everything (and lost) @ Stalingrad?
Importance of StalingradThe capture of Stalingrad was important to Adolf Hitler, and Benito Mussolini, for two primary reasons. First, The city was an important transport route Volga River between the Caspian Sea and northern Russia. As a result, the German capture of the city would effectively sever the transportation of resources and goods to the north.
Think oil, and think that all nations will do anything to acquire/control the precious juice. Mako refers to humans as 'hairless apes'; go camping for 3-4 days without shaving/taking a shower. Know what you look like? A big, dirty, smelly hairy ape. Now, what happens when/if the oil is cut off? An entire society completely dependent on the energy subsidy all quickly begins to look like 4 day campers. Not nice; no, not nice at all.
Right now, the $USD reserve status + boots on the ground (and carriers in the water + planes/drones/satellites in the sky) allow each & every one us to sleep in relative comfort, wake up and take a nice hot shower, shave, brew up some hot coffee, get in a nice car, and drive to work in a nice air-conditioned office, etc, etc.
Bennie is a pipsqueak and Obama is a punk. You really think they're gonna be allowed to screw this deal for some crazy short-term effect like one-off elections? (Travis refers to the conflict as the King vs Goldsmiths. LOL) When this shit comes down, take a guess who will be hailed as the savior? He is presently wearing a uniform.
We are in total control of oil. We are sitting on a shit load of natural gas.The U.S./Oil peg is not changing ...
Ok but if I read your history lesson you have to listen to this.
http://www.youtube.com/watch?v=7lC1lRz5Z_s
I go many days a year in the woods without showering. I guess we can say I go ape.
Ok so if you are implying that we are going to go to war, I understand this to be a possibility. Here is the thing. First, bad idea when you do not FIRST control the oil supply. Right now the House of Saud, Russia, and Venezuela do, in no particular order (especially considering reporting techniques). Second, if the SHTF then I assume that the dollar is no longer the reserve currency, correct? Because if the dollar is the reserve currency as the backside of oil production is breached, then you can call me Shirley.
And as far as the history lesson, I enjoy discussing oil and Nazis in the same context. They are a perfect example of when a country without major oil reserves, in this case Germany, tries to go it alone. After Exxon got slapped on the wrist for trading with the enemy (as well as the bank presided over by Prescott Sheldon Bush's Brown Brothers Harriman), Germany was forced to use liqued coal. WW2 was lost on this fact alone, never mind millitary blunders and horroics. If the allies had had an oil production problem this world would have been red and black.
Your enemies re: oil are not the Arabs. It's the stupid econuts in your own backyard. Between Alberta's oil sands, and the Bakken play in AB, SK, WY, and ND, there's plenty of oil here for transportation and fertilizer, and plenty of uranium in SK for nuclear for electricity. I'm confident that when the SHTF, the majority of Americans will tell the greenies to stick their BS back up their respective rectums, and we'll achieve energy independence on a continental scale, no problem.
Yes, if the Arabs - where America gets a whole freakin' 12% of its oil - slapped on another embargo, we'd go through 12-18 months where people would just cut back a bit, carpool, take the bus one day a week, etc., while the new capacity was brought on stream. Yeah, I've heard the whole "it takes ten years to build a new refinery/reactor/pipeline" but how much of that is EPA red tape and hearings? During WWII, a pipeline was built from Portland ME to Montreal PQ in less than six months. We could get new capacity in place in a hurry, if we really wanted to. America went from a peace time economy in November 1941 to the world's biggest war machine in 1942. I think they could build a few new reactors in five years.
America's biggest problem right now is it has no unifying focus - it's a conglomeration of warring factions, tearing itself apart. Give it a chance to focus that rage outwards, and the rest of the world had better watch out, China included.
With all do respect, dog, I think you're wrong. As has been discussed ad nausem here on ZH, Bernanke's #1 mission is to support asset prices through increased demand which he hopes will also boost inflation expectations. Currently, nominal interest rates are basically 0%, which by the equation i = r + πe indicates the economy is in a deflation and real interest rates are therefore rising. 0 nominal rates and rising real interest rates [i.e. deflation] means cash is the best investment right now. GE is the only remaining tool for the Fed as we've reached the 0 nominal bound for rates. Bernanke has no other option and has alluded to as much in recent statements.
We will see QE2. The only question is, how big will it be...
Do you remember Econ 1 and the Social Welfare curve? How do you make more people better off while making fewer people worse off? Well the guvment and Ben have realized it's cheaper to bust the TBTF banks than to go down the other road...QE ll is still on, just not at the level they had you believing.
Thought you might appreciate this guy's perspective on the interplay between China and the MIC:
http://www.oftwominds.com/blogoct10/great-game10-10.html
He has a very interesting point; other than rare-earth materials, China has little to offer that can't be easily duplicated elsewhere. When it comes to the real essentials (food, energy, and water), they are light years behind and are net importers... (polluting your water supply to make a buck is true genius...)
Chess meets Go! bitches!
There is a reason the US is wooing Vietnam with trade/mil/power deals and playing regional sea/island disputes off China other than pure balancing. The "analysis" however is woefully short on analysis.
It's interesting but it seems fairly unrealistic. And the part where the US pushes the Saudis to over-supply the world with cheap oil seems problematic (why would the Saudis do that?). My main objection, though, is that the author seems to be looking for a military "solution" (why?).
In case of global hunger it'd be much worse than they describe it and no country would sit around idly waiting for the US to do this and that. Would major oil-exporting countries be so stupid to sell oil for debt (or fiat money) until they run out of oil, food and water? Or would they start quoting in gold (or water/food) before that?
The notion that the US would be able to deny others access to ME oil seems strange. Should shortage of oil affect the whole world every tanker would be at risk and among all major oil importers the US market is most remote and therefore US-bound routes would be most exposed.
The writer doesn't seem aware of the new Chinese-made "carrier killer" missiles which could make aircraft carriers much less effective if not obsolete (we don't know as they haven't used them yet). Would the Chinese export these to Iran and other fine destinations?
I won't even mention other possible developments such as (for example) Ron Paul becoming the next President. This may be unlikely, but even this unlikely scenario is more likely (and desirable) than the Mad Max scenario described in that article.
The oil producers have already started asking for gold in exchange for oil. They did so a long time ago. I assume you've been on the Trail, yes?
Over thousands of years, it is well documented that the power-elite make money two ways: (a) loans; or (b) repossession. Nowhere does destroying the value of their underlying assets via hyper-inflation enter into the equation.
Bill Gates is the richest person in the world, having made his fortune on software.
Has software existed for thousands of years?
Or - put another way - it wasn't even possible for hyper-inflation for the past "thousands of years" because there hasn't been fiat money for that long. The very first fiat money wasn't until the Song dynasty (about 1000 AD), and it hasn't become widespread until the 19th and 20th centuries.
Since then yes - lots of wealthy elite have made a fortune in hyperinflation. Just not in the U.S., because well, the U.S. hasn't had hyperinflation (yet).
I stopped ripping his post apart a month ago. Waste of time same thing over, and over, and over ... total crap.
.
I wouldn't get too carried away here... There are cross currents and rip tides here, that we can't conceive of... Remember what Goldman did to Leehman... I have been bearish on BAC for over a year, so let's see how this plays out...
I don't agree... We're in act 2 scene 3... QE2 will happen... Read Rosenbeurs latest piece on what the FED is trying to accomplish... Asset price inflation and forcing retail out of bonds and back to equities for a variety of reasons.
Can you enlighten me on the where the 25T came from and where it went?
B9K9,
Would you care to elaborate on the $25 trillion: where did it come from and where did it go? I'm curious.
I think it's time to adopt the means and the measures of the Foreclosuregate. OK, I posted an article above here. The same article is over on the contributors page:
http://www.zerohedge.com/forum/asymmetrical-warfare-mill-wars-based-ucc-practice
They will make the difference up in premiums though im sure..Mother fuckers...
more margin call mania?
Lightning strikes twice on Wall Street in two years...
EBONY TUESDAY?
Goodbye, Ebony Tuesday. Who could hang a name on you?
Please....a 1.8% pullback in stocks or gold does NOT signify a crash by any means.... Both will be green tomorrow on the POMO. Yawn....
-3% in gold, -2.25% in RUT, +1.67% in dollar.
Nothing to see here?;
What POMO?
Corporate welfare.
Insiders sold into it all summer and they may be ready to pull the plug on life support...
JPM has been manipulating gold prices for decades. A mere 3% drop in gold price is nothing. People like myself who have been trading gold for some time expect these corrections. If the plug is finally pulled on the market.....then let er rip - because when the ashes settle you will find your PMs worth more than the linen in your wallet. You should have a read at Martin Armstrongs latest piece - he doesn't think the market will tank. He believes that gold and the market will rise in tandem (with gold at 5000) as assets shift from public domain to private.
Never forget May 6th. Dollar down. Stocks down. Gold up. Gold mining up.
Unless I am mistaken, I believe there is POMO tomorrow and Friday.
Like ZH has been saying, when everybody else is OUT of the markets, PERIOD, then the vile animals will start feeding on themselves.
Should be fun to watch, welcome to the jungle.
Since it is BofA's Countrywide mess... does that mean they will all turn on Tangelo??
Looks like that piece of jerky got out of town just in time. They should rope his tanned ass back in and hang it.
Oh God, now Tyler's doing it, bitches!
Bitches, bitches. :)
Bitcheses?
I believe 'bitchezez' is the proper form.
Technically, it is "bitchi".
Like "octopi" instead of "octopussies".
recalcitrant females!
Why is it, as I start to read this, that my arse is starting to hurt? I know I smell a taxpayer backstop in this somewhere.
Putbacks will defintely be taxpayer funded. Banks must not realize any losses. They are too important. It's a matter of national security.
Not this time. Politically unacceptable. When the problem becomes a systemic threat, the Feds will move in...why do you think the TBTF banks haven't been whining outloud this time...they whine they're gone. There is only one outcome to this problem. Short the TBTF banks!
Is that Barney Frank standing behind you?
Better put your athletic protective cup on backwards...
What is really funny is that there is a chance that old queen may be voted out of office in November. Many of the entrenched incumbants are in big trouble. One can only hope.
What's truly amazing is that he really likes taking it up the ass...maybe that's why he thinks everyone else does as well.
October 19, 2010
BOSTON --The campaigns of Democratic U.S. Rep. Barney Frank and Republican challenger Sean Bielat are brushing off a brisk exchange of words between Frank's partner and the GOP candidate.
The exchange took place after a debate last week when Frank's partner, Jim Ready, started taking pictures of Bielat.
According to a Boston Herald video, Bielat asks about the pictures and Ready responds "You better get used to it dude."
Ready then says "It's a free country, isn't it?" and a chuckling Bielat responds "It sure is, at least if we can get the Congress back."
A spokesman for Frank's campaign said Ready is an amateur photographer who takes pictures at many campaign events and "no harm" was intended.
A Bielat spokeswoman said the "video speaks for itself."
------
Information from: Boston Herald, http://www.bostonherald.com
Jim Ready, huh? Top-ten all-time porn-star name there.
Rock Hardon! C'mon, we need Rock Hardon on the set...
Mr Glass Steagall Fin Reg Reform...
Why do the bad guys get a free pass out of office with healthcare, pensions and corporate perks?
Flash crash....what a feeling!
More than a feeling ... when I hear that old song play ...
Pimco probably bought these last week at .15, looking for par
yup; "I had no idea these securities were misrepresented!"
PIMPCO with the trade of the year.
How can anyone take Pimco seriously with this? I mean, these bastards were buying up this crap like a drunken sailor as recently as a month ago!!!???
If this were to ever get litigated, Pimco would be said to be "the proximate cause of its own injury".
UFB
jim willie reported that boa had a near death experience in july.....is the angel of death visiting again?
Flash crash again, bitchez?
This piece of news is just a new Lehman. Poor, poor piggy bankers.
Oh it hurts so good!
+100!!
I've been long X,000 Oct 22 calls on FAZ since today's open.
Wow, you somehow miraculously changed your previously reported puts into calls... You are some kind of wizard...
.
Like a Scene From the Godfather
At a commission meeting of the NY bosses... Godfather Jamie Dimon nods to Lloyd the "Knife"...
Dimon: "Somebody has to go down again."
Starring at Fuld's empty chair.
Lloyd: "BofA's the fall guy for this."
Meanwhile on the Left Coast...
PIMPco's Bill "Bugsy" Gross wants his day in the sun...
Bugsy wants a PIMPco operative in the White House Summers' slot to pull on Obummer's puppet strings...
Dimon: "Fogetaboutit..."
+!
"What are you gonna say to Billy, Jaime?" "I'm gonna make him an offer he can't refuse."
Gross' horsehead!
Hilarious!
How about Neel "Down You Bitch" Kashkari's bald little noggin'...
lol!
wb7 ROTFLMAO! This has got to be your best yet! Very apropos!
2x lol
How does he do it?
And so quick too!
LOL here...
Thanks WB7
Think about how fucking hard these guys have to work to make it so easy to rank on them this way ;-)
They are inbred ... it comes naturally. Nice artwork BTW. It made my day.
That's fukin funny..
+1000 wb7
That is great!
Nice!
hahahaha thats great!!
But CNBC said it was all okay yesterday.
And O'Bamao told me to not worry today. How is that possible? They wouldn't lie to us, would they
Simple but funny. Nice.
The last big earth quake in TN, the Mississippi flowed backwards. Imagine your shit is flowing backwards....
The Damage Done
http://www.youtube.com/watch?v=k0t0EW6z8a0
Milk blood to keep from running out.
citing Neil and Realfoot in a single post
Nice.
I love you baby, can I have some more.
Heart of Au.
Top notch seranade for the sunset over the American dream, thank you MsC.
Hold on to what's important and you'll be fine.
Dow just fell through the floor on this news ....
The miners are getting blowtorched Vale,CLF,BHP,MT ...
The huge block traded in SPXU and the massive 'flash crash' in SPY 17 minutes later (AH) yesterday was a just a fluke....right?
Tic, tic, tic