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We’ve Been Bamboozled by the Banking Industry, but the Chickens Are Coming Home to Roost
While chatting with Herb Greenberg before my interview at CNBC on the banks, he asked me why I was short the banks, JPM in particular (JP Morgan’s 3rd Q & Just How XYZ Bank Can Never Go Out of Business!!!). I told him that I believe they are overly optimistic about the reserve thingy (Big Banks Will Pay for Optimism), the mortgage put back cosequences (JP Morgan’s Analysts Agree with BoomBustBlog Research, Contradict CEO Jamie Dimon’s Conference Call and The Putback Parade Cometh: Pimco, New York Fed Said to Seek Bank of America Repurchase of Mortgages) and real estate in general.
I also said that in the scheme of things, Jamie Dimon appears to be,
by far, the most effective manager of the big banks, and JPM seems to
be the best run of the big banks. He negotiated a literal coup with
Bear Stearns purchase, getting the billion dollar head quarters for
free, the company for $10 per share and government backing for the
legacy assets. He made a mistake with WaMu by not demanding a deeper
discount. I know it seems like 28% or so off seems like a good deal,
but it was not – and I clearly stated it several times (Is JP Morgan Taking Realistic Marks On Its WaMu Portfolio Purchase? Doubtful!).
I just want to make this clear. There is nothing personal here, at
least in terms of investments and financial analysis. The stream of
events are of such grave consequence that this goes beyond mere finance,
though. Why? This country has been “Bamboozled by the Banking
Industry”, but the “Chickens Are Coming Home to Roost”. Let me explain…
Throughout most of 2009, while 10%+ of unemployed middle America stopped paying their mortgages, busy standing in line for shiny fat margin iThingies while in rabid debate about how many pieces of tail Tiger Woods may or may have not hit
(yes, that story got 2160 tweets and 375 comments on how well endowed
“the Tiger” is – would you dare to bet that this article on a potential
depression will get even one third of that?) the greatest mass fraud of
this lifetime against said persons was underway.
This should be played in 720 HD full screen mode
Mr. and Mrs Middle America, you’ve been Had, you’ve been Took, Bamboozled, Hoodwinked, led Astray, run Amok (yes, YOU have, see You’ve Been Bamboozled, Hoodwinked and Lied To! Here’s the Proof. What Are You Going to Do About It? and click your rung in the socio-economic ladder, ex. your “social class”). From rating agency subprime madness to stress tests designed not to apply any stress to robo-signing and beyond (Mortgage Putbacks, the Harbinger of the Collapse that Will Dwarf 2008!)
the financial and political elite appear to be running a real time
experiment to demonstrate how numb they can prove the mainstream
populace to really be? Will the experiment fail this time around? After
all, things are different with the Web, and independent thought rocketed
around the world in the form of blogs. We shall see what becomes of
this real time socio-economic lab session, we shall see!
A few have been emailing me looking for a bio. I believe my track
record should speak louder than any paragraph or two about my prior
occupation(s). Credibility should come from accomplishment, not
pedigree, no? Click here to find out who I am what I have done. Be sure to scroll all the way down to the bottom of the page.
Next up:
- the updated JP Morgan forensic valuation (yes, what I think it is actually worth) for subscribers (there’s a surprise or two in here that I’ll reveal to the public)
- the Goldman Sachs forensic valuation update
- and my proprietary research on the foreclosure backlog this one will be a doozy)!
»
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This is incredible. I can't believe ZH hasn't posted this unless I missed it. Its one thing to have a whistleblower, but to have a judge as one should be irrefutable.
bix , 2 days ago.
http://www.roadtoroota.com/public/411.cfm
you keep on tooting your own horn reg. great info, keep it coming.
That is an amazing admission. Shouldn't the FBI or something be all over it?
And still the corruption that is the CTFC continues. Even still those corrupt banks manipulate gold and silver, in full knowledge they are protected by the CTFC.
Cant wait for the public exectutions of corrupt regulators.
NEW DEVELOPMENTS IN THE CFTC SCANDAL: On September 17, 2010, CFTC Administrative Law Judge, George H Painter, issued a "Notice and Order" announcing his retirement from his position. In this notice Judge Painter wrote of a conspiracy at the highest levels of the CFTC (within the ENFORCEMENT DIVISION) where a long time judge of 20 years has been conspiring with past CFTC Chairs to RIG THE ENFORCEMENT OF THE LAW by NOT finding ANYONE guilty of market manipulation. Here are Judge Painter's own words:
In the era of deregulation, the regulators have little to worry about. If they did, they wouldn't see it coming, anyhow.
The criminal justice system should be all over most of what we discuss on this site but it turns out they've been bought like everyone else
FBI is far too busy posing as volunteer photographers and infiltrating Patriot groups (who only want truth and justice anyway). If we actually HAD truth and justice, there wouldn't be any need for Patriot groups OR the FBI, and all those "volunteer" snitches and agents provacateur would be out of work.
Hmmm...
SWRichmond:
The FBI came into existence at a time when the gangs running booze and practicing extortion were machine gunning each other on the streets of Chicago. Enforcement of law was limited because some politicians, judges and poliece were bought.
Free lance bank robbers were loose in the midwest because the small town law envorcement didn't have the jurisdiction and resources to go after them. Theft of livestock was also a sometimes problem.
The FBI had the authority to take them on wherever they were.
Then came WWII and the spy threat.
Maybe if we can get the Arab radicals to stop trying to hijack aircraft, or bomb US cities, we won't need the FBI anymore.
Does the FBI have the authority to take on the big banks? Why aren't they using it?
FBI is security for banks...no dice
http://www2.fbi.gov/pressrel/pressrel07/mortgagefraud030807.htm
Got a clue for you. The pounding the taxpayers a$$ has been getting isn't from "Arab radicals".
Wait, are you reading this on some kind of iDooDad?
duplication
I like Reggie and I think he's an intelligent guy,... almost too intelligent. He understands a very complex picture, but he's too intelligent to break it down simply so that the masses can understand it. He jumps,... no leaps (with samurii sword) from brilliant conclusion to brilliant conclusion but in doing so, he leaves the mainstream behind unable to match his stride.
He's the kind of fellow that you'd love to help translate. Translate his brilliance so intense it blinds. Maybe reduce the candlepower, or digitally compress the message without losing the message, to clarify the picture so to speak.
Reggie could be a signficant part of the New American Revolution. What do you think, Reg?
@ New Revolution - great constructive criticism!
The people who are in the most need of Reggies expertise are the people who are "standing in line for shiny fat margin iThingies while in rabid debate about how many pieces of tail Tiger Woods may or may have not hit" & if you think those people are gonna "keep two extra tabs open - Wikipedia and Investopedia" to comprehend the message that's being conveyed... Hahaaaaa! They're busy!!!
If a writer is interested in reaching those folks, they'd better write in a Yahoo! style. Whether a writer wants to 'dumb-down' for the masses is a separate matter. And, I've no opinion about that.
Reggie on Squawk was great. Herb gave him a terrific lead-in.
Its a great teaser title but the bulk of the piece has nothing to do with the title. Its just Reggie promoting himself as usual. Reminds me of Muhammad Ali, "I am the greatest." Reggie's Informercials, LLC.
Why, oh why, do it bother to keep reading this stuff?
Why do you bother posting Noah?
The higher, more legitimate question is, "Why do you trolls keep posting?" But I already know the answer.
Good work, Reg.
His attitude is closer to Ricky Hendersons'....'I am the greatest of all time'.
Reggie bashers beware. You are exposing your attention span and the content and capacity of your grey matter.
Reggie is doing the work, sometimes in parallel, sometimes ahead, that shows what tomorrow will have to be.
Where some of the posters see self promotion, I see stress relief from hard honest work. Yes, he is excited, he is continuing to discover that his humble exploration of the data is more accurate than the the recognized princes and popes of the financial community.
If you don't get his picture, then read it again and THINK about what he has said.
Take or leave it!
Only 29 hours in my day, so I have to cut corners somehow. If you have a problem understanding terms, I suggest you keep two extra tabs open - Wikipedia and Investopedia (the second one has a problem allowing you to copy and site their content, so I recommend Wikipedia for a more open Web) and refer to them at will.
Reggie, GREAT WORK as always and please DO NOT dumb it down. Just because 80% of current American schooled 8th graders can not read at grade level does not mean you need to reduce yourself to such low standards. Again, keep up the great work!!!
i can't speak for the first commentor, but i think what he was getting at was along the lines of the gripes about iThingys and Cheetah Woods were of far more interest than the impending economic collapse. i don't think it's so much that the information needs to be put in a context that is easily consumed as people just don't want to realize and think about how horrible our situation really is.
Reggie,
Sight, site, citation, cite,
Sightation.
You post though .........
excightation.
+1000
If you don't challenge yourself daily you might as well pack it in and take the pipe.
First, thanks Reggie for all your insights. I could care less, what school you went to, where you worked, etc... We have college professors in the White House and running the FED and what has that got us??
Second, I agree with your analysis, but given the crazy bizarro world we live in, how do you discount the potential actions of the FED and Treasury to do EVERYTHING they can to save the TBTF banksters? I will not invest in markets where there are NO RULES. Sure the banks should fail, but as we have seen, our government and the FED will ruin the entire economy before they let this happen. At this point it is "BANKSTERS RULE", and nothing I have seen will change this anytime soon.
He could do it as a 3rd Grader's comic strip and the masses STILL wouldn't understand it. Stop whinging and write your own 'Financial Crashes For Dummies'!
Well, that's what William Banzai is here for.
And is busy working on his next presentation. As you read this ;-)