MF Global
Guest Post: Growth Is Obsolete
Submitted by Tyler Durden on 10/20/2013 15:01 -0500
The sad, stark fact is that oil is now too expensive to permit further expansion of economies and populations. Expensive oil upsets the cost structure of virtually every system we need to run modern life: transportation, commerce, food production, governance, to name a few. In particular expensive oil destroys the cost structures of banking and finance because not enough new wealth can be generated to repay previously accumulated debt, and new credit cannot be extended without a reasonable expectation that more new wealth will be generated to repay it. Through the industrial age, our money has become an increasingly abstract and complex product of debt creation. In short, a society with deeply impaired capital formation has turned to crime, corruption, fakery, and subterfuge in order to pretend that “growth” — i.e. expansion of capital — is still happening.
Frontrunning: October 15
Submitted by Tyler Durden on 10/15/2013 06:42 -0500- Apple
- Barack Obama
- Barclays
- Capital One
- China
- Chrysler
- Citigroup
- Comcast
- Corruption
- Credit Suisse
- Creditors
- Debt Ceiling
- default
- Deutsche Bank
- Global Economy
- headlines
- India
- Insurance Companies
- Iran
- Italy
- Jamie Dimon
- Japan
- Medicare
- MF Global
- Michigan
- Morgan Stanley
- None
- Private Equity
- Raymond James
- RBS
- Reuters
- Royal Bank of Scotland
- Securities Fraud
- Verizon
- Wall Street Journal
- Wells Fargo
- Wilbur Ross
- Yuan
- Spot the pattern: Senate Leaders Nearing a Deal (Politico), Senators say debt, shutdown deal is near (USA Today), Senate Leaders in Striking Distance of a Deal (WSJ), U.S. senators hint at possible fiscal deal on Tuesday (Reuters), Senate Debt-Limit Deal Emerging (BBG)
- U.S. debt ceiling crisis would start quiet, go downhill fast (Reuters)
- Uneasy Investors Sell Billions in Treasurys (WSJ)
- BOE’s Cunliffe Says U.K. Is Not in Grip of Housing-Market Bubble (BBG)
- Letta Mixes Tax Cut With Rigor in Post-Berlusconi Italian Budget (BBG)
- Japan Seeks to Export More High-End Food (WSJ)
- Burberry names Bailey CEO as Ahrendts quits for Apple (Reuters)
- China’s Biggest Reserves Jump Since 2011 Shows Inflow (BBG)
Frontrunning: October 3
Submitted by Tyler Durden on 10/03/2013 06:35 -0500- Bank of America
- Bank of America
- Barclays
- Belgium
- Brazil
- China
- Citigroup
- Credit Suisse
- Crude
- Daniel Loeb
- default
- Gambling
- Germany
- goldman sachs
- Goldman Sachs
- Henderson
- Hong Kong
- Keefe
- Merrill
- Mexico
- MF Global
- Morgan Stanley
- Natural Gas
- Nomination
- President Obama
- Private Equity
- Prudential
- Raymond James
- Real estate
- Regions Financial
- Reuters
- SAC
- Testimony
- Wall Street Journal
- Wells Fargo
- Wilbur Ross
- Yuan
- Mounting Wall Street fears of US default (FT)
- This is what the US government does when it is "shut down" - CIA ramping up covert training program for moderate Syrian rebels (WaPo)
- SEC Weighs Overhaul of Exchanges’ Self-Regulatory System (WSJ) - just let Goldman and JPM do all the policing; not like anyone cares anymore
- Reid Sets Tone for Democrats in Shutdown Fight (WSJ)
- No Movement in Shutdown Standoff (WSJ)
- Shutdown will not slow Fed nomination, says Obama (FT)
- Syrian Regime Chokes Off Food to Town That Was Gassed (WSJ)
- Tesla Says Car Fire Began in Battery (AP)
- China Services Index Increases in Sign of Sustained Rebound (BBG) or sustained data manipulation
The Next 3 Years
Submitted by Tyler Durden on 09/28/2013 14:45 -0500
This is at a time when we have real economic growth barely above 2% and nominal growth of just over 3% (abysmal by any standards) after six years of monetary easing and 5 years of QE1; QE 2; Operation twist; QE “infinity” and huge fiscal deficits. After last week Citi notes it is not clear that this set of policies is going to end anytime soon. It seems far more likely that these policies will be continued as far as the eye can see and even if there are “anecdotal” signs of inflation this Fed (Or the next one) is not a Volcker fed. This Fed does not see inflation as the evil but rather the solution. Gold should also do well as it did from 1977-1980 (while the Fed stays deliberately behind the curve). Unfortunately Citi fears that the backdrop will more closely resemble the late 1970’s/early 1980’s than the “Golden period” of 1995-2000 and that we will have a quite difficult backdrop to manage over the next 2-3 years.
5 Years After the Financial Crisis, The Big Banks Are Still Committing Massive Crimes
Submitted by George Washington on 09/20/2013 11:12 -0500Still Laundering Terrorism and Drug Money ...
Corzine Seeks Dismissal Of CFTC Lawsuit, Recalls He Is Innocent After All
Submitted by Tyler Durden on 09/11/2013 08:09 -0500
The man who could barely recall anything at his various Congressional hearings, has no problem with remembering one key aspect of the MF Global bankruptcy: Jon Corzine is innocent! And, as a result, yesterday his lawyers filed a motion to dismiss a civil case brought against him by the CFTC in which the legal team shows that the best defense is a good offense and openly critiques the commodities regulator. DealBook excerpts from the filing: "There is no evidence demonstrating that Mr. Corzine knowingly directed unlawful conduct or acted without good faith," wrote the lawyers from Dechert, Andrew J. Levander and Benjamin E. Rosenberg. "Rather than acknowledge that reality and move on, the C.F.T.C. has clung to its baseless presumptions and manufactured charges of wrongdoing that are supposedly connected to Mr. Corzine." Right: the commingling just happened on its own. Twas but a glitch.
Frontrunning: September 11
Submitted by Tyler Durden on 09/11/2013 06:42 -0500- Apple
- Bank of America
- Bank of America
- Barack Obama
- Barclays
- Blackrock
- Capital Markets
- Charlie Ergen
- China
- Commodity Futures Trading Commission
- Copper
- Corporate America
- Credit Suisse
- Creditors
- Dell
- Deutsche Bank
- Dow Jones Industrial Average
- Dyson
- Ferrari
- Fitch
- General Motors
- Glencore
- goldman sachs
- Goldman Sachs
- GOOG
- Greece
- Gundlach
- Insider Trading
- Iran
- ISI Group
- Keefe
- Merrill
- Merrill Lynch
- MF Global
- Michigan
- Morgan Stanley
- national security
- News Corp
- Norway
- Raymond James
- RBC Capital Markets
- recovery
- Reuters
- Ron Burkle
- Shadow Banking
- Spectrum Brands
- Time Warner
- University Of Michigan
- Verizon
- Viacom
- Wall Street Journal
- Wells Fargo
- Obama Holds Fire on Syria, Waits on Russia Plan (WSJ)
- China Shadow Banking Returns as Growth Rebound Adds Risk (Reuters)
- Not one but two: Greece May Need Two More Aid Packages Says ECB’s Coene (WSJ)
- BoJ insider warns of need for wage rises (FT) ... as we have been warning since November, and as has not been happening
- California city backs plan to seize negative equity mortgages (Reuters)
- Home Depot Is Accused of Shaking Down Suspected Shoplifters (BBG)
- Most-Connected Man at Deutsche Bank Favors Lightest Touch (BBG)
- Norway Pledges to Limit Oil Spending (BBG)
- China Shadow Banking Returns as Growth Rebound Adds Risk (BBG)
- Gundlach Says Fed Is Mistaken in How It's Ending Easing (BBG)
Why The Post-Lehman Reflation Is Reaching Its Limits
Submitted by Tyler Durden on 08/25/2013 14:03 -0500
It’s ironic, or it seems that way to us, that two of the least understood financial markets by equity investors are two of the most systemically important – repos and gold. Even more ironic is how so many investors don’t even consider them to be all that important. In our view, stability in both markets is a pre-requisite for maintaining confidence in the financial system and keeping the credit/asset bubble inflated. The significance of these markets is not lost on governments, central banks and regulators, although the definition of “stability” in each of them is slightly different. Looking underneath the bonnet/hood, we are doubtful that either of these markets, repos or gold, can reasonably be described as “stable” right now. There also seems to be a paradox where the current low repo rates and gold prices are, we suspect, fooling people into a false sense of complacency. What’s really piqued our interest, however, is whether there is a similar issue which is increasingly impacting both of these systemically important markets? This issue relates to the availability of sufficient collateral...
JPMorgan: $7 Billion In "Fines" In Just The Past Two Years
Submitted by Tyler Durden on 07/30/2013 12:10 -0500
There was a time when Jamie Dimon liked everyone to believe that his JPMorgan had a "fortress balance sheet", that he was disgusted when the US government "forced" a bailout on it, and that no matter what the market threw its way it would be just fine, thanks. Then the London Whale came, saw, and promptly blew up the "fortress" lie. But while JPM's precarious balance sheet was no surprise to anyone (holding over $50 trillion in gross notional derivatives will make fragile fools of the best of us), what has become a bigger problem for Dimon is that slowly but surely JPM has not only become a bigger litigation magnet than Bank of America, but questions are now emerging if all of the firm's recent success wasn't merely due to crime. Crime of the kind that "nobody accept or denies guilt" of course - i.e., completely victimless. Except for all the fines and settlements. Here is a summary of JPM's recent exorbitant and seemingly endless fines.
Let Freedom Reign This July 4th By Withdrawing All Assets From the Global Banking Slavery System
Submitted by smartknowledgeu on 07/05/2013 04:00 -0500- Afghanistan
- Anglo Irish
- Australia
- Bear Market
- BIS
- Capital Markets
- Central Banks
- China
- Citigroup
- Cognitive Dissonance
- Dubai
- ETC
- Fail
- Great Depression
- Hong Kong
- Hyperinflation
- Iran
- Iraq
- KIM
- Krugman
- LIBOR
- MF Global
- Obama Administration
- Paul Krugman
- Precious Metals
- Reality
- Roman Empire
- Shadow Banking
- SmartKnowledgeU
- Somalia
- Wachovia
- World Bank
Whether or not you believe PMs will serve as the ultimate store of wealth as the global fiat monetary system collapses should have absolutely no bearing on making the intelligent decision to remove your financial assets from under the domain and inevitable confiscation of global bankers and their State-run tyrannies. Independence Day is a fine day to start the process of taking back our freedoms from the tyrants that rule over us.
Revolution: Corzine in Prison? And, Denninger on the Fed.
Submitted by EB on 07/04/2013 13:21 -0500Independence? Corzine's cooked and so is the Fed. But why did it take the CFTC two years to hunt down Corzine?
Frontrunning: June 28
Submitted by Tyler Durden on 06/28/2013 06:57 -0500- 8.5%
- AIG
- American International Group
- B+
- BAC
- Bank of America
- Bank of America
- Ben Bernanke
- Ben Bernanke
- Borrowing Costs
- Bridgewater
- China
- Citigroup
- Consumer Prices
- Credit Suisse
- Deutsche Bank
- Fannie Mae
- Federal Reserve
- Freddie Mac
- Gambling
- GE Capital
- Greece
- India
- Iran
- Keefe
- Las Vegas
- Merrill
- MF Global
- Natural Gas
- New York Times
- Obama Administration
- Private Equity
- Raymond James
- Real estate
- Renminbi
- Reuters
- Royal Bank of Scotland
- Same-Sex Marriage
- Securities and Exchange Commission
- Shenzhen
- Standard Chartered
- Unemployment
- Verizon
- Wall Street Journal
- World Bank
- Yuan
- Fashionable 'Risk Parity' Funds Hit Hard (WSJ)
- No 1997 Asian Crisis Return as China Trembles (BBG)
- Greece Faces Collapse of Second Key Privatization (FT)
- China Bad-Loan Alarm Sounded by Record Bank Spread Jump (BBG)
- Iranian official signals no scaling back in nuclear activity (Reuters)
- Asmussen Says Any QE Discussions at ECB Not Policy Relevant (BBG)
- Flat Japanese consumer prices aid Kuroda (FT)
- Vietnam Devalues Dong for First Time Since ’11 to Boost Reserves (BBG)
- World Bank Sees ‘Vulnerable’ Food System on Climate Change (BBG)
- Fed big-hitters seek to quash QE fears (FT)
- EU Leaders Set to Slow Support for Ailing Banks (BBG)
Apparently This MF Global "Clusterfuck" Does Not Deserve Criminal Charges
Submitted by Tyler Durden on 06/27/2013 14:07 -0500
"O’BRIEN: It is a total clusterfuck . . . . They have to move half a billion dollars out of BONY to pay me back . . . . Tell me how much money is coming in and I will make sure it gets posted. But if you don’t tell me, then tomorrow morning I am going to have a seg problem . . . . I need the money back from the broker-dealer I already gave them. I can’t afford a seg problem."
Corzine Officially Charged By CFTC For Filing False Reports, Commingling Funds And Other Violations
Submitted by Tyler Durden on 06/27/2013 13:33 -0500
... the Complaint charges that MF Global (i) unlawfully failed to notify the CFTC immediately when it knew or should have known of the deficiencies in its customer accounts; (ii) filed false reports with the CFTC that failed to show the deficits in the customer accounts; and (iii) used customer funds for impermissible investments in securities that were not considered readily marketable or highly liquid in violation of CFTC regulation; and that Holdings controlled the operations of MF Global and is therefore liable as a principal for MF Global’s violations of the Commodity Exchange Act and CFTC regulations.
Frontrunning: June 25
Submitted by Tyler Durden on 06/25/2013 06:21 -0500- Anglo Irish
- B+
- Barrick Gold
- Bear Market
- Bridgewater
- Capital Markets
- Charlie Ergen
- China
- Citigroup
- Credit Suisse
- Crude
- Dell
- Deutsche Bank
- Fisher
- fixed
- GOOG
- Hong Kong
- Insider Trading
- ISI Group
- KKR
- LIBOR
- Merrill
- MF Global
- Monetary Policy
- Morgan Stanley
- Newspaper
- People's Bank Of China
- President Obama
- Raj Rajaratnam
- Real estate
- Recession
- recovery
- Reuters
- Richard Fisher
- Saks
- Silvio Berlusconi
- Tender Offer
- Toyota
- Wall Street Journal
- Weil Gotshal
- Wells Fargo
- Yuan
- Here come the rolling blackouts: Obama takes on power plant emissions as part of climate plan (Reuters)
- Walking Back Bernanke Wished on Too Much Information (BBG)
- As previewed last week: Bridgewater "All Weather" is Mostly Cloudy, down 8% YTD (Reuters)
- U.S. Said to Explore Possible China Role in Snowden Leaks (BBG)
- Coeure Says No Doubt ECB Loose Monetary Policy Exit Distant (Bloomberg)... so a "recovery", but not at all
- U.S. steps up pressure on Russia as Snowden stays free (Reuters)
- Texas' Next Big Oil Rush: New Pipelines Ferrying Landlocked Crude Expected to Boost Gulf Coast Refiners (WSJ)
- Singapore Offsets Bankers as Vacancies Fall (BBG)
- Asian Stocks Fall as China Sinks Deeper Into Bear Market (BBG), European Stocks Rally With Bonds as Metals Advance (BBG)
- Qatar emir hands power to son, no word on prime minister (Reuters)





