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Why are so many laws and rules being thrown out?

Phoenix Capital Research's picture




 

 

The biggest problem facing investors today is that “the rules” of the game change almost every year.

 

What I mean is that any basic rule investors took for granted could be thrown out the window. Indeed, in the last five years we’ve seen:

 

1)   Accounting standards at financial institutions suspended.

2)   Capital requirements for banks (Basel III) postponed multiple times.

3)   Fraud go unpunished.

4)   Obvious insider trading amongst political officials and banking insiders.

5)   Central bankers openly admit that they will lie to investors.

 

Why are so many laws and rules being thrown out?

 

The Powers That Be are committed to propping the system up by any means possible.

 

Consider Spain.

 

Spain’s banking system, by any reasonable analysis, is totally bankrupt.

 

The reason for this is that Spanish banks are all packed to the brim with garbage assets (mortgage loans and Spanish Government bonds… which aren’t worth the paper they’re printed on).

 

Consider the story of Bankia.

 

Bankia was formed by merging seven bankrupt regional Spanish banks in 2010.

 

The new bank was funded by Spain’s Government rescue fund… which received “preference shares” in return for over €4 billion (from taxpayers).

 

These preference shares were shares that a) yielded 7.75% and b) would get paid before ordinary investors if Bankia failed again. So right away, the Spanish Government was taking taxpayer money to give itself preferential treatment over ordinary investors.

 

Indeed, those investors who owned shares in the seven banks that merged to form Bankia lost their shirts. They were wiped out and lost everything.

 

Bankia was then taken public in 2011. Spanish investment bankers convinced the Spanish public that the bank was a fantastic investment. Over 98% of the shares were sold to Spanish investors.

 

One year later, Bankia was bankrupt again, and required the single largest bailout in Spain’s history: €19 billion. Spain took over the bank and Bankia shares were frozen on the market (meaning you couldn’t sell them if you wanted to).

 

When the bailout took place, Bankia shareholders were all but wiped out, forced to take huge losses as part of the deal. The vast majority of them were individual investors (the bank currently faces a lawsuit for over 140,000 claims of mis-selling shares).

 

So that’s two wipeouts in as many years.

 

The bank was taken public a year a second time later in May 2013. Once again Bankia shares promptly collapsed, losing 80% of their value in a matter of days. And once again, it was ordinary investors who got destroyed.

 

Indeed, things were so awful that a police officer stabbed a Bankia banker who sold him over €300,000 worth of shares (the banker had convinced him it was a great investment).

 

Which brings us to today.

 

Bankia remains completely bankrupt. But its executives and the Spanish Government continue to claim that things are improving and that the bank is on the up and up. Indeed, just a few weeks ago, the Wall Street Journal wrote an article titled “Investors Show Interest in Bankia.”

 

The story featured a quote from Spain’s Finance Minister that, “… it is logical. The perception of Spain has improved and Banki has improved a lot.”

 

Bear in mind, this is a bank that has wiped out investors THREE times in the last THREE YEARS. So that’s three different rounds of individual investors being told that Bankia was a great investment and losing everything.

 

Every single one of these wipeouts was preceded by both bankers and Spanish Government officials claiming that “everything had been fixed” and that Bankia was a success story.

 

And now the Spanish Government is trying to convince them to line up for a fourth round.

 

This kind of fraud and lawlessness is unbelievable to me. But it is indeed how the world works today. Those who have power will do anything they can to retain it. This includes, lying, cheating, and stealing.

 

And while certain items relating to this story are unique, the morals to Bankia’s tale can be broadly applied across the board to the economy/ financial today.

 

Those morals are:

 

1)   Those in charge of regulating the system will lie, cheat and steal rather than be honest to those who they are meant to protect (individual investors)

2)   Any financial problem that surfaces will be dealt with via fraud or lies rather than taking a hit. This will include short selling bans, stocks being frozen, bail-ins, and worse.

3)   When the inevitable collapse finally does hit, it will be individual investors and the general public who get screwed.

 

For a FREE Special Report outlining how to profit from bear market crashes and bull market runs, swing by: http://phoenixcapitalmarketing.com/special-reports.html

 

Best Regards

Phoenix Capital Research 

 

 

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Thu, 12/26/2013 - 20:14 | 4278011 are we there yet
are we there yet's picture

Message to Spanish investors. America has a brooklyn bridge that is a great investment, cotact me for more info.

Thu, 12/26/2013 - 15:20 | 4277289 JClay
JClay's picture

"Let me issue and control a Nation's money and I care not who makes its laws" - Nathan Rothschild

Thu, 12/26/2013 - 12:12 | 4276793 bshirley1968
bshirley1968's picture

"This kind of fraud and lawlessness is unbelievable to me. But it is indeed how the world works today. Those who have power will do anything they can to retain it. This includes, lying, cheating, and stealing."

You left one important thing out.  The reason everyone sits back and does nothing about the lying, cheating, and stealing........is the killing they will also do.  Can you say, "Lincoln"?  There are tons of examples I could give, but that one should do.

 Obama, Congress, and their hinchmen, the military and law "enforcement" have proven time and time again that they have no problem dealing with those who question the right of the power players to supreme rule.  It is okay to see the lying, cheating, and stealing as long as you keep you head down and mouth shut.  Cause too much trouble and you will have to be dealt with.

We all know it is money and power that has us killing people in the middle east and NOT human rights!  So quit focusing just on the money side, Graham, and tell the whole truth about what they will do to stay in power.

Thu, 12/26/2013 - 11:57 | 4276765 mrdenis
mrdenis's picture

I think it's time we taught our kids just who will be the new enemy   ....http://rt.com/news/drone-survival-guide-published-774/

Thu, 12/26/2013 - 18:22 | 4277813 logicalman
logicalman's picture

There's no 'new enemy' just a name change.

The enemy is The Central Bank.

 

 

Thu, 12/26/2013 - 20:00 | 4277981 are we there yet
are we there yet's picture

The puppet master of the central bank is David Rothchild the head 'don' of the Rothchild family.

Thu, 12/26/2013 - 11:59 | 4276764 overmedicatedun...
overmedicatedundersexed's picture

the more corrupt the more laws moar means moar of both. in america the honest men are suckers sheep for the taking..police should have asked for more bribes and kick backs, that's why I hate them they sold themselves for peanuts.n (exception kelly former NYC police er corrupt chief) he got his payday via CFR.

Thu, 12/26/2013 - 09:19 | 4276479 Pee Wee
Pee Wee's picture

"Indeed, things were so awful that a police officer stabbed a Bankia banker who sold him over €300,000 worth of shares (the banker had convinced him it was a great investment)."

Banker soup.

Thu, 12/26/2013 - 14:31 | 4277161 Vendetta
Vendetta's picture

an instance of actual justice....

Thu, 12/26/2013 - 08:54 | 4276434 falak pema
falak pema's picture

Spain : Basket Case; Land of crony capitalism built by Bushist Aznar and then blessed by his socialist successor Felipe Gonzales. Both tools of Spain's aristocracy which runs the banks and combines. 

Spain is just the same as Greece, Ireland, Italy and to a certain extent USA in reserve/big stick hubris.

One thing that is missing from the Anglo psyche that has built Pax Americana financialista world and surrogate ECB/BOJ/BOE clones is :

the old notion of Nemesis from the Greeks; aka consequence of our acts born in Hubris.

The Indian philosophy calls it Karma for the individual.

The Chinese call it unbalancing the forces of Yin and Yang that govern all human constructs.

Take your pick.

Thu, 12/26/2013 - 07:22 | 4276417 litemine
litemine's picture

Why are the laws not bringing the Coruption on Wall Street to Task? It's like TPTB want the system to fail, taking all down the hole with it.  When everything is said and done, the Ultra Rich should get sniped and all their wealth removed, Complete Family's Hung.

Too many lost all to their greed and corruption. SUB-HUMAN Bastards, they have no compassion.

When they take everything, you don't have much to lose. Waiting for News Reports that many take to the streets in retribution, Wall Street has many dead..... Really, I'm amazed it hasn't happened yet. "A cancer riddled crazy retaliates." Could be heard yelling "Here Take this too" as his weapon flashes again and again

Thu, 12/26/2013 - 20:03 | 4277991 are we there yet
are we there yet's picture

It is good to be king, but better to control the king. If you are the controller you can hide in an amorphious cloud of uncertainty like the Rothchild family.

Thu, 12/26/2013 - 06:40 | 4276398 ebworthen
ebworthen's picture

Scrooge doesn't like rules and laws anymore than he likes Christmas.

Right Jamie and Lloyd?

You humbugs.

Thu, 12/26/2013 - 03:32 | 4276312 Notarocketscientist
Notarocketscientist's picture

Here are 4 articles that give you the big picture with respect to this never-ending crisis....everything else - the corruption, the politics, the wars... are irrelevant ... this is all that matters....  the global economy cannot function on expensive oil - and most of the cheap stuff has been burned up.....  

When reading this sobering analysis remember this - most of our food comes from industrial farming - all industrial farming using gas and oil based fertilizers and pesticides - now think about what happened in the middle east when we had a weak corn crop a couple of years ago.....

It would take around 3 years to convert from industrial farming to organic farming - organic farming is more expensive and does not have as high a yield.

So for those of you who are wishing for this collapse to come - be careful what you wish for - this is not going to be Mad Max.... this is going to be far far worse....  think about what a world with billions of starving people looks like. 

Enjoy the privilege of being able to go to the grocery store and by food while you can.

 

 

Former BP geologist: peak oil is here and it will 'break economies'
http://www.theguardian.com/environment/earth-insight/2013/dec/23/british-petroleum-geologist-peak-oil-break-economy-recession

http://ourfiniteworld.com/2013/10/23/rising-energy-costs-lead-to-recession-eventually-collapse/

http://ourfiniteworld.com/2013/12/06/diminishing-returns-energy-return-on-energy-invested-and-collapse/

http://ourfiniteworld.com/2013/10/14/two-views-of-our-current-economic-and-energy-crisis/

http://ourfiniteworld.com/2013/12/18/th-real-oil-extraction-limit-and-how-it-affects-the-downslope/#more-38658

 

Thu, 12/26/2013 - 20:52 | 4278086 Its_the_economy...
Its_the_economy_stupid's picture

Thanks for the links.

Thu, 12/26/2013 - 18:26 | 4277823 logicalman
logicalman's picture

I would agree on most of this, but, if you look closely, organic can feed everyone if done properly.

We likely have a few too many humans on planet earth, but I think 'natural wasteage' would be preferable to catastrophe.

If humans can't figure this out they deserve extinction.

Wed, 12/25/2013 - 23:05 | 4276010 disabledvet
disabledvet's picture

We've all gone Chrysler Corporation. The irony that the only one standing behind his product right now is Elon Musk...and the Koreans interestingly. "One more bubble and we'll have it all fixed. Trust us!"

Thu, 12/26/2013 - 20:04 | 4277996 drdolittle
drdolittle's picture

amen for bringing up chrysler

Wed, 12/25/2013 - 22:19 | 4275954 Duude
Duude's picture

"Indeed, things were so awful that a police officer stabbed a Bankia banker who sold him over €300,000 worth of shares (the banker had convinced him it was a great investment)."

 

Whatever happened to, 'Fool me once, shame on you, fool me twice, shame on me'??

Thu, 12/26/2013 - 19:53 | 4277975 Promethus
Promethus's picture

Always remember Hanlon’s Razor: “Never attribute to malice that which is adequately explained by stupidity.”  Any malice and chicanery in these economic crises is always dwarfed by the overwhelming stupidity. You're right: fool me once, shame on you. Fool me twice, shame on me.

Thu, 12/26/2013 - 06:52 | 4276407 litemine
litemine's picture

Who said it was the second time the police officer made a poor investment on the advice from the Banker he stabbed?

The Banker got his just dues.  We need more Cops like this one, and anyone else that gets swindled. The Bankers that remove all cream while not adding any value to anything yet profit from and gamble others money away.

There will be a time when the arrogant  people, that are in positions of trust, pay for the abuses they cause.

Hang them high.

Wed, 12/25/2013 - 23:22 | 4276026 JeffB
JeffB's picture

It seems like he may not have been very well diversified in addition to not doing much due diligence... or Spanish policemen make better money than I suspected.

 

Thu, 12/26/2013 - 09:03 | 4276468 Doctor of Reality
Doctor of Reality's picture

If this cop was willing to stab a criminal, then he was probably willing to take money from criminals as well. 

Wed, 12/25/2013 - 22:26 | 4275966 Tijuana Donkey Show
Tijuana Donkey Show's picture

Shank me once, shame on you. Shank me twice, I must be a banker.

Thu, 12/26/2013 - 13:05 | 4276918 nickels
nickels's picture

Caveat emptor. A fool and his money are soon parted. "Doctor it hurts when I do THIS." Doctor: "Don't do that."

Wed, 12/25/2013 - 22:48 | 4275985 Papasmurf
Papasmurf's picture

Shank of America

Thu, 12/26/2013 - 16:53 | 4277564 mc225
mc225's picture

'shank of america'

LOL

Wed, 12/25/2013 - 22:17 | 4275952 MichaelNY
MichaelNY's picture

Any pretense to the rule of law was abandoned in October 2011 with the outright theft of $1.6 billion dollars by Jon Corzine with MF Global.  In full public view, and in front of Congress.  Totally unindicted, unconvicted, and unpunished.  What "rule of law?"

"In Jersey everything'a legal, as long as you don't get caught."  - Traveling Willberrys

Thu, 12/26/2013 - 19:57 | 4277979 Promethus
Promethus's picture

Not true. BO was whiping his ass with the rule of law since 2009.

Thu, 12/26/2013 - 14:07 | 4277084 logicalman
logicalman's picture

If you are rich enough, it's not even illegal if you DO get caught. That's the big problem.

Eat the banksters - it wouldn't be canibalism, they are a different species.

Wed, 12/25/2013 - 23:33 | 4276022 Radical Marijuana
Radical Marijuana's picture

Yeah, I agree, MichaelNY, that Corzine's MF Global story was the single most extreme example in 2011, which symbolized everything else that this article above is talking about! However, I believe that we have not seen anything yet, regarding how much more the "rule of law" is going to become degraded and destroyed.

The fundamental feature is that after any group in society starts to get away with fraud, then there is nothing left within that society which can stop them. The only thing that maybe can stop them is that their triumphant frauds eventually destroy the whole society, so much that, eventually, the overall natural selection pressures destroying that society as a whole becomes the only real correction left which could operate.

More "truth" has no effect upon runaway systems of legalized lies, backed by legalized violence. No rational arguments based on evidence or logic make any difference to successful financial frauds after those pick up enough speed to steamroller over any opposition. The "success" of the established systems becomes more and more based on evil deliberate ignorance, that gets more wide-spread and pervasive ... which means that more and more laws and rules will be thrown out in future, than have been thrown out in the past ...

Thu, 12/26/2013 - 17:52 | 4277723 blindman
blindman's picture

Thursday December 26 3:00pm
Sojourner Truth
http://archive.wbai.org/#ankor1
.
the law as rarely discussed in
polite company.
minute 4:00 to end ....
the democratic republic is prohibited
in our legal system?

Sat, 12/28/2013 - 06:38 | 4281375 Optimusprime
Optimusprime's picture

Nice lecture--thanks.

Thu, 12/26/2013 - 00:23 | 4276107 Nimby
Nimby's picture

You're right, but I think there is one element you didn't mention:  as more laws are thrown out, even more laws will have to be created so that they can be thrown out in the future.

Wed, 12/25/2013 - 22:29 | 4275969 Tijuana Donkey Show
Tijuana Donkey Show's picture

The victims "have" gotten their money back. /SARC

Wed, 12/25/2013 - 22:27 | 4275968 Tijuana Donkey Show
Tijuana Donkey Show's picture

The victims "have" gotten their money back. /SARC

Wed, 12/25/2013 - 22:00 | 4275932 Nimby
Nimby's picture

If you like your bank, you can keep your bank...

Thu, 12/26/2013 - 01:18 | 4276206 Boris Alatovkrap
Boris Alatovkrap's picture

You like your money, you can is keep your... never mind, bail-in is big as lie as Obamacare.

Wed, 12/25/2013 - 21:01 | 4275866 KennyW
KennyW's picture

That really sucks.

Thu, 12/26/2013 - 01:17 | 4276204 Boris Alatovkrap
Boris Alatovkrap's picture

Rule might change, but Spanish investor is simple plain stupid. Fool me once, shame on... Boris is forget adage, but obvious is no one is blame but stupid Spanish Investor. Better invest in subterranean copper extraction enterprise is Baltic region.

Thu, 12/26/2013 - 18:33 | 4277832 Pig Circus
Pig Circus's picture

Fool me once, shame on you. Fool me twice shame on me.

Boris, Learn it, Love it, Live it.

Thu, 12/26/2013 - 01:34 | 4276227 Urban Roman
Urban Roman's picture

... or small copper-bearing island in Mediterranean, perhaps?

Thu, 12/26/2013 - 08:54 | 4276456 GetZeeGold
GetZeeGold's picture

 

 

Obama will be announcing the new healthcare law changes at 9:30......instead of the usual 10:30 announcement.

 

Again...there will be a time change today.....stay sharp!

 

Congress will be informed at the 3:30 afternoon briefing....so they can appear to be bumbling idiots.....as usual.

Thu, 12/26/2013 - 09:06 | 4276473 Andy Lewis
Andy Lewis's picture

And just to confuse the pundits, Obama will switch from golf to bowling.

Thu, 12/26/2013 - 09:09 | 4276477 GetZeeGold
GetZeeGold's picture

 

 

As usual I'm in the wrong damn place......again.

Thu, 12/26/2013 - 13:20 | 4276950 Boris Alatovkrap
Boris Alatovkrap's picture

Boris entire life is spending in wrong place... is now used to be in wrong place - if in right place, is scary surprise for Boris.

Thu, 12/26/2013 - 14:45 | 4277195 falak pema
falak pema's picture

If Boris change name to SIROB everything OK , and nobody can KO Sirob. 

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