Dis and Dat

Bruce Krasting's picture



Convenient timing for this announcement. Sixty days before the big election the Administration is dishing out favors to big hedge fund contributors. I wonder how much they took in to make this deal.









It always surprises me how quickly sentiment changes. A month ago the the FX market had a big short on the EURUSD. The betting at the end of August is that a long Euro position is the way to make money.

How big are the expectations that Mario Draghi has to deliver on? Big. Very big.







No TAG? What's that about?

In the dark days of 2008 the FDIC guaranteed all non-interest bearing deposits at banks. Back then, there was a run on the banks. TAG (Transaction Account Guarantee) was the FDIC response. Tag was supposed to run out in 2010 but got extended to 12/31/12.



Time has run out for any legislation to extend TAG before the election. Add this silly old thing to all the other things that are going to fall off a cliff on New Years Eve.

Oh, one thing about TAG, the transactions accounts that are guaranteed by FDIC run to the Tens of Trillions! So much for that TBTF issue we used to hear about. Another reason for a a hard landing in January.





Watch out for this story. It has legs.







How much of the student loan debt is un-payable? Half?


This debt is a noose around young people's neck. What an ugly thing to have done to them. The next generation will never be able to dig out of the hole.







For those who love regulations and believe that Congress can actually fix things, DF is a blessing. In the end, those who want more regulations will find themselves strangled by DF. It ain't gonna work!


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MrSteve's picture

The USA has to rollover $1.2 Trillion for many years to come. This means QE in one form or another will continue. This is what Ben meant in this morning's J-Hole release (that even sounds unpleasant!)

There are over One Quadrillion $$$$$ of listed obligations on BIS summary pages, for exchange-traded and non-exchange traded derivatives. The banks are backing the derivatives and the FED is backing the banks, so the daisy chain ends with the taxpayer funding the whole mess.

Owning gold has never looked smarter!

Cult of Criminality's picture

Funny stuff Bruce


Cult of Criminality's picture

dud frankenstein

more theatre of the absurd...... LOL

Looks like something pelosi would be into ...(LOL continues)!

q99x2's picture

With fundamentals removed from the markets we have to wait for the FED banksters to let us know how much the market should rise. It is possible now with the detachment from the economy and the dependence on algos that the FED may not easily be able to stop the markets from rising unless they are the main holders of equities at this time.

dexter_morgan's picture

Is Jon Corzine still a free man?

Crisismode's picture


He charges a very high hourly rate.

WestVillageIdiot's picture

When you can suck that much dick in an hour you can charge a premium.  Jenna Jameson would be envious.

Zero Govt's picture

so we're only half-way to completing FrankenDodds 400 new Laws, and when we do peace and order will decend across the nation

anyone of a more sane disposition who sees the rise of law (rules on others behaviour) as a direct correlation to the rise of totalitarsm (anarchy is another word) walk this way...

Stop Paying Your Taxes ...don't sponsor anarchy (Govt)

onlooker's picture

The California State University system is DOING ITS PART to reduce the number of unemployed University graduates.


It is restricting the critical courses for graduation so that it takes at least an additional year to two years longer to get what used to be a four year degree. My Civil Engineer son took over 5 years and the last semester was a squeaker to get into one of the restricted class. Costs jumped large every year.


The good news is he graduated. The bad news is he is still working at his intern engineering job and may have to start a Masters Degree program to keep the part time job. The good news is he was able to work 20 hours a week and full time summers so he avoided student loans. And he lived at home, and mom and dad had stashed a little of the gold and silver to meet future needs. This paid off well; he got the degree he had wanted since he was 8 years old. He can’t get the full time job to use the degree, bur he doesn’t owe a bunch of money for nearly 6 years of hard work and training.


He did vote for HOPE and Change, so he did his part in the political area. The bad news is ------------

disabledvet's picture

"it's just change with no hope." well...better a little jingle in the pocket than just butterflies i say. not that that's real money either...phuckers. can't even get a real copper penny anymore. OH THE HUMANITY!

ebworthen's picture

Modus operandi of the State University systems nationwide.

Make all kinds of promises up front, then once those kids are committed, and three to four years in debt, restrict class openings or withdraw promises of previous credits or coursework counting towards graduation.

Have seen it first hand over and over and over.

Graduate school?  Those graduate students are held captive because they are used to teach undergraduate classes.  They will mysteriously fail their thesis defense, and be required to stay in another semester or year to "get up to snuff", and of course, pay more tuition. 

More classes to teach while the department collects the undergrad gravy paying the graduate student peanuts.  Then, of course, will come the thesis "revisions" which may mean another semester or two of 6 credits or more of "thesis research" where they do nothing but pay for empty credits until their committee "approves" their thesis or dissertation.

All the while the department and overpaid professors will collect a fat salary and millions in government grants.

And...if they happen to get that Piled Higher and Deeper (PhD) they will spend 7 years being an indentured servant to a department.  If they are a good lackey and fall in line with the "recruit 'em, ream 'em, rote 'em" system they "may" get tenure.  A good majority are used up for 7 years at low pay then spat out.

Competely broken system, like all the others of the U.S.S.A.

Freddie's picture

He did vote for HOPE and Change, so he did his part in the political area

Nice job.  He voted to be a lifelong serf and debt slave.   You must be proud.  

masterinchancery's picture

Yes, at some point your son may come to realize how karma works.

WestVillageIdiot's picture

I wonder if he has one of those Obama 2012 bumper stickers.  I'm thinking of getting one of those.  Unlike the ubiquitous Obama 2008 that were on every big government lover's car the 2012 version seems almost as hard to find as an honest politician.  I figure they will have collector's value in 10 years or so since only about 6 had to be printed.

You can't love the big government and then be pissed when it works against you.  Freedom is messy but the nanny state is a bloodbath.  Perhaps the dipshits will turn off Judge Joe Brown and The X Factor long enough to realize that. 

disabledvet's picture

I hear of no one on the right ordering the arrest of any Wall Street types either. Not even "America's Mayor" has spoken out against the wholesale looting of the US economy "with total war in the Middle East as a backdrop." The idea that "this is how it's always been done" is total crap, too. COWARDICE! http://www.youtube.com/watch?v=0d8FTPv955I
those really were the days...sad to say. those of us stupid enough not to grow up where everything was to be stolen have been robbed blind. "and justice takes a holiday" still. the accident wasn't that we won WWII. the "accident" was that we lost this one.

Cthonic's picture

 "For those who love regulations and believe that Congress can actually fix things, DF is a blessing. In the end, those who want more regulations will find themselves strangled by DF. It ain't gonna work!" -- Bruce Kasting

Quoted For Truth.  The unintended consequence of this behemoth is that Banking and the State may as well be renamed Chang and Eng.



Toolshed's picture

A whole bunch of that student debt is not resting on young people's shoulders. My daughter is 30, a licensed pharmacist in the state of Florida, working on a temp basis at a VA hospital I might add, and owes well over 100k. I am in my 50's and am still making student loan payments as well. I received my bachelors in 1997. Many not-so-young people went back to school when they could not find employment during the recent hard times. I would like to see a breakdown by age group of the student loan debt. Might prove interesting and enlightening.

Larry Dallas's picture

I'm your age and I can support and /or give my opinion of what has happened to them: the doubled down and lost.

End of story.

Like Gene Wilder in Willy Wonka: "you get nothing! Good day sir!"

disabledvet's picture

is that her picture? "i'm on the hunt" as they say...http://www.youtube.com/watch?v=-MWw_ovoGKk little nervous at times sorry to say. been working on that tho...

Freddie's picture

Hope & Change - African muslim marxist style. You gotta love it you feral little serfs. 

Keep watching TV and Hollywood shit.  Your viewership insures your continued slavery you dumb fvkkkks.

WestVillageIdiot's picture

Hey, she looks pretty good in that bathing suit.

I won't touch the story about her daughter, with the part-time pharmacy gig.  I know several pharmacists.  They make a lot of money.  There is no reason a pharmacist should be crying poverty.  There must be a little more to that story so I will withhold judgment until that is explained. 

otto skorzeny's picture

I never did get the "high paid" pharmacist gig. and they are laying alot of them off in the hospitals in Chicago- bean counters must have figured out the scam that alot of the pharms were redundant.

Freegolder's picture

No need to worry about the student debts, a quick 90% collapse in the currency will sort that little lot out. Not so good for the savers though. Shit happens.

WestVillageIdiot's picture

The student borrowers, like the HELOC'ers and the willing cannon fodder of the housing bubble, are another victim group lacking mainly in victims.  Many of the borrowers are good little "liberal" college foot soldiers.  They support big government since that is what their 21st century liberalism is all about.  They hope to turn those loan bucks into elementary education, women's studies, social work and teaching degrees.  They must fight for the big government utopia because without it they would have no future.  Their skills and their degrees apply only to the welfare state.  They are statist shills, through and through. 

I know one student that is getting a Women's Studies degree because she doesn't want to have to do any math in college.  That seems valuable.  Way to go, public school systems.

I know another student that told me one day that all of his college was being paid for by grants.  The next day he lamented about his student loans.  I said, "but you're schooling is all paid for by grants".  He told me about how he had wanted a new car and how he didn't think he should have to live like a poor student.  That money was to pay for the extras in life that he deserved as an undergraduate.

This is much like the people we know that HELOC'ed the shit out of their houses.  They pissed all of the money away.  They are now basically squatting, having stopped the mortgage payments.  And somehow they have transformed themselves in their own minds into victims. 

We just found out that a friend's nephew has some degenerative bone issue.  He cannot walk for at least a year, at which time they will see how he is doing.  I think he is 9 years old.  He is a victim.  The rest of these "victims", not so much. 

masterinchancery's picture

Have to agree--combination of stupidity, arrogance and bad karma for many of these "students."

ebworthen's picture

7,000 pages and counting...

Useless paper, just like the fiat.

Meanwhile, Jon Corzine strolls free down the street of dreams.

dondonsurvelo's picture

And a guy that used a fake dime in 1963 gets fired from his WF Bank job. 

Cthonic's picture

7,000 pages *on top of* all of the pre-existing regulations and penalties.  Nothing like turning complaince into a barrier to entry.  Pretty soon will need more lawyers than tellers.

Sofa King Confused's picture

Dodd to Frank...." take that cock out of your mouth and get to work"

New_Meat's picture

I've been using "Frank-Dodd" so I can contract it to "Frodd" - Ned

HoofHearted's picture

I've always liked to call it FrankenDodd. And with 7000 pages already, it is a monster!

Matt's picture

Great news, everybody! we're only ~7000 more pages away from having a perfect financial system!

shovelhead's picture


Does that sound like FRAUD?

Haager's picture

It's obviously, yes. Are you british as described by D. Adams?

Panafrican Funktron Robot's picture

Suggestion:  Just call it "Dank"

Dollar Bill Hiccup's picture

That was cheery!

The thought is growing that curing debt with more debt does not work.

Who is going to believe that an investment in equities now is "real"?

300 - 500 points lower on the SPX would be more convincing.



pies_lancuchowy's picture

7000 pages? This guarantees that later they will have to come out with the Act Simplifying the Dodd-Frank Act

(which will consist of 7000 ^2 pages)

boiltherich's picture

If anybody is long euro who has not just smoked a pipe load of meth or crack they must be betting on a major Bernanke easing soon, like just post JHole. I concede that is a possibility, the way the GOP has talked about him and the Fed recently with murmurs of a gold standard and adopting RP's demand for an audit (though one has to wonder how much of that is trying to capture RP supporters and how much is sincere) Benny must be thinking his days are numbered if Romney were to win no matter how unlikely that appears today, and the only thing he can do to bolster Obama's popularity is an immediate douching of America with hot money on Main Street. That all means that the US dollar would take a hit even with Mario fellating the periphery because the euro will be devalued but the buck devalued more by comparison.

If you ask me that is a bad bet and I should think that the markets having been burned in euroland so many times in the last few years would not pile more cash on that bonfire.

Cthonic's picture

Unless Bernanke secretly wishes to retire, I doubt he'll Carterize the incumbent since Romney's already made noises about replacing the chairsatan.

Freddie's picture

I doubt there is anything chairsatan aka The Ben Bernank can do for baby Mohammed Allah at this point.   It really doesn't matter.  The magic islamic opened up all the flooding valves on the ship and it is sinking.

Cthonic's picture

Hey I hope you're right.  Nobama '12. This year I'm voting for whomever can make Obama disappear.  Um no, I didn't mean that euphemistically sir... hey wait... please unhand me officers ... ahhhhh grrgl.

steve from virginia's picture




Congress could have simply repealed Gramm-Bliley-Leach and been done with it. Commercial banks, investment (whorehouses) and insurance companes all gone their separate ways. Rules that existed before GBL would have been re-applied at zero-cost.


All the advertising on planet Earth will not help hedge funds.


The entire flow structure of the US nanny state depends on the willingness of younger workers to support it ... by taking responsibility for the debts of the nation, not just for themselves.


What younger workers? I live in a gigantic building full of younger workers ... none of them speak English!

Freddie's picture

Anyone with an IQ above 70 knows hedge funds cannot beat the S&P 500.  A (very) few good ones can but you cannot get in them anyway.

The wealthy have realized that, by an large, hedge funds are total shit.  Now they can advertise to try to get less sophisticated suckers.  Maybe Bernie can get parole to save the rich.

otto skorzeny's picture

what is the big deal if hedge funds advertise? if people want to pony up millions and pay the 2/20 to get into something that underperforms the S&P 500- let 'em. Puerto Rican bonds-is that like a real thing? larf

Freddie's picture

Bernie Madoff's Buy Here Pay Here Hedge Fund

He can run it from the Federal pen and he can use his old CPA.  Jon Corzine can be their TV pitchman. 

Maybe they can also get Wilford Brimley too.   "I am a mean old guy you have seen on TV and in movies but I get my diabetic medicine and my monthly check from Madoff/Corzine Neutral Hedge Pure Alpha Ponzi Fund."  "2 and 20 is not much to pay for piece of mind."

ebworthen's picture

If auto insurance is required by law to operate a vehicle why allow companies to waste policy premiums on advertising?

If only your doctor can prescribe the latest pill from big pharma, why do we allow them to waste money that should be going to research and decreasing the cost of said medicine on relentless advertising?

What is the big deal allowing PAC's and corporations to be seen as individuals and run non-stop propaganda about candidates on both sides and contribute millions to candidates who are supposed to represent constituents?

Yes, big deals.

ebworthen's picture

Thumbs down from insurance, advertising, and PAC execs?

C'mon, don't hide.