Today, to little fanfare, the Fed announced a major binding settlement with the banks over robosigning and fraudclosure, which benefited the large banks, impaired the small ones (which is great: room for even more consolidation, and even more TBest-erTF, which benefits America's handful of remaining megabanks), and was nothing but one minor slap on the banking sector's consolidated wrist involving a laughable $3 billion cash payment. As part of the settlement, the US public is expected to ignore how much money the banks actually made in the primary and secondary market over the years courtesy of countless Linda Greens and robosigning abuses. A guess: the "settlement" represents an IRR of some 10,000% to 100,000% for the settling banks. We are confident once the details are ironed out, this will be an accurate range. Yet what is most disturbing, or not at all, depending on one's level of naivete, is the response of Elijah Cummings, ranking member of the house Committee on Oversight and Government Reform. As a reminder, Congress had demanded that the settlement not be announced before there was a hearing on it. This did not even dent the Fed's plans to proceed with today's 11 am public announcement which can now not be revoked. It is Cummings' response which shows, yet again, just who is the true master of the Federal Reserve.
Obamacare - There was a significant “drafting” mistake in the original legislation.
California Demands Business Insider Retract False Story On Jobless Claims Misreporting; Business Insider RefusesSubmitted by Tyler Durden on 10/12/2012 08:24 -0500
After yesterday Zero Hedge first reported the reason for the surprising plunge in the past week's initial claims, which as the BLS explained was due to "a state" (whose identity despite all tabloid speculation to the contrary is still unknown) not reporting "some" figures, assorted blogs picked up on what has since been confirmed to be an incorrect report by Business Insider's Henry Blodget claiming that "Well, we're glad to say that we've finally gotten to the bottom of what happened" and that the state in question is none other than California (supposedly as opposed to Illinois to shut up those wacky conspiracy theorists). Turns out the site known best for its slideshow presentations (which will soon double down as advertisements) may have once again fibbed just a little, following an official demand by none other than California state Employment Development Department direct, Pam Harris, that BI retract its article. To wit: "Reports that California failed to fully report data to the U.S. Department of Labor, as required, are incorrect and irresponsible... It’s unfortunate this ‘reporter’ and others who repeated the article’s erroneous statements chose to speculate rather than report, failing to confirm this information with EDD." Sure enough, the 'reporter' in question replied, and it appears that Business Insider is better informed than California when it comes to matters such as these, and has refused to retract.
Perhaps we are finally getting somewhere, though we suspect only traversing the toilet bowl, as the Chairman of the Government Oversight Committee, Darrell Issa, just blasted the BLS over the jobs data in a conversation with Greta Van Susteren on FOX Business. Issa demands a 'Hearing' because:
the way it's being done with the constant revisions, significant revision, tells us that it's not as an exact a science as it needs to be and there's got to be a better way to get those numbers or don't put them out if they're going to be wrong by as much as half a point.
We are more than happy to provide the factual data to support this Hearing - though we suspect Hilda Solis will be deeply offended that her PhDs' work could be questioned.
Ben talks, the WSJ blows smoke and storms grow.
Gold $1669.80 up 20 cents - Silver $30.61 up 16 cents Silver Charges Ahead, Gold Rebuffs Cartel RaidSubmitted by lemetropole on 08/24/2012 19:03 -0500
Silver is going to blow SKY HIGH!!
How should we say this: we are shocked, shocked, that the DOJ won't prosecute itself.
BREAKING: DOJ says it won't prosecute Attorney General Holder after the GOP-led House voted to hold him in criminal contempt of Congress - Fox
And now, back to the far more important news of Tom Cruise and Katie Holmes divorcing.
After earlier none other than Obama stepped up and invoked an executive privilege, hoping the next step would be avoided, Darrell Issa just called the president and the AG's bluff:
HOUSE PANEL VOTES TO HOLD ERIC HOLDER IN CONTEMPT - BBG
But wait, there's more:
HOLDER CALLS CONTEMPT VOTE `EXTRAORDINARY' AND UNNECESSARY
HOLDER CALLS CONTEMPT VOTE `ELECTION-YEAR TACTIC'
... And now to give some illegal immigrant voters pseudo-amnesty. So aside from this soaring acrimony between Republicans and Democrats, the "Fiscal cliff" issue will be promptly resolved. Promise.
If there was any confusion whether Obama is in fact Bush, or maybe even Nixon, this has now been squashed. From Fox:
President Obama has granted an 11th-hour request by Attorney General Eric Holder to exert executive privilege over Fast and Furious documents, a last-minute maneuver that appears unlikely to head off a contempt vote against Holder by Republicans in the House. The House Oversight and Government Reform Committee is expected to forge ahead with its meeting on the contempt resolution anyway.
Holder, whose guilt is implicitly proven by this action, is now likely absolved of everything as the TOTUS has effectively onboarded all of his "balance sheet risk." And why not. The Fed does it for everyone else every day.
Treaty Negotiated In Secret – Hidden Even from Congressmen Who Oversee Treaties – Threatens to Destroy National SovereigntySubmitted by George Washington on 06/14/2012 18:50 -0500
Treaty Threatens Global Government … Run by Giant Corporations
While normally we stay away from outright political commentary especially of the kind that has no direct relation to finance or the economy, the fact is that if the US had a functioning, uncompromised, uncorrupt, and effective Justice Department, much of what we see every day on Wall Street would be vastly different since if crime did indeed have punishment, then a vast portion of the questionable behavior that is exhibited by financiers would have been eliminated long ago. Which is why we find the news just released from The Hill that "Rep. Darrell Issa (R-Calif.) has circulated a draft copy of a resolution that would hold Attorney General Eric Holder in contempt of Congress" particularly relevant. For it is none other than Holder's complete lack of involvement and intervention to outright daily crimes conducted in the financial world that is as much a reason for the deplorable economic state of this country and the world, as are all those other factor extensively discussed in books and documentaries each and every day.
What is more amusing than the pathological liars that are Tim Geithner or Ben Bernanke testifying to congress? Both of them testifying at the same time. Such as now. From C-Span: Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke go before the House Oversight and Government Reform Committee Wednesday to discuss lessons learned from Europe’s sovereign debt crisis. In a hearing titled, “Europe’s Sovereign Debt Crisis: Causes, Consequences for the United States and Lessons Learned,” both financial chiefs will share their personal experiences. Since the crisis, the Federal Reserve has assisted foreign counterparts by provide monetary support. In November, the Fed and it's worldwide counterparts announced a cut in the interest rate premium charged to over seas banks which borrow in dollars. The monetary policy targeted struggling European banks. In a Senate hearing earlier this year, leading economists also testified on the European debt crisis and the outlook for the eurozone. They said that the U.S. should treat the crisis as a wake-up call and urged lawmakers to bring down debt and spending to sustainable levels.
ACTA: “Would Usurp Congressional Authority”, "Threatens Numerous Public Interests", a "Backroom Special Interest Deal"Submitted by George Washington on 01/29/2012 23:44 -0500
Unconstitutional ... in any language.
Down 20% from September 2006. Toyota and Honda got brutally slammed. But don't blame post-earthquake inventory shortages. They have been resolved. It's a shift in the market.