This page has been archived and commenting is disabled.
Leveraged Financial Speculation In The US At A Familiar Peak, Once Again
"I believe myriad global “carry trades” – speculative leveraging of securities – are the unappreciated prevailing source of finance behind interlinked global securities market Bubbles. They amount to this cycle’s government-directed finance unleashed to jump-start a global reflationary cycle.
I’m convinced that perhaps Trillions worth of speculative leverage have accumulated throughout global currency and securities markets at least partially based on the perception that policymakers condone this leverage as integral (as mortgage finance was previously) in the fight against mounting global deflationary forces."
Doug Noland, Carry Trades and Trend-Following Strategies
The basic diagnosis is correct. But the nature of the disease, and the appropriate remedies, may not be so easily apprehended, except through simple common sense. And that is a rare commodity these days.
Like a dog returns to its vomit, the Fed's speculative bubble policy enables the one percent to once again feast on the carcass of the real economy.
'And no one could have ever seen it coming.'
Once is an accident.
Twice is no coincidence.
Remind yourself what has changed since then. Banks have gotten bigger. Schemes and fraud continue.
What will the third time be like? And the fourth?
Do you think that Jamie bet Lloyd a dollar that they couldn't do it again?
Should we ask them to please behave, levy some token fines, watch the politicans yell and posture in some toothless public hearings, let all of them keep their jobs and their bonuses? And then bail them out, wind up the old Victrola, and have another go at the same old thing again?
Maybe we can vote for one of their hired servants, or skip the middlemen and vote for one of the arrogant hustlers themselves, and hope they get tired of taking us for a ride before we all go broke.
This policy we have now is the trickle down stimulus that the wealthy financiers have been sucking on with every opportunity that they have made for themselves since the days of Andrew Jackson. Whenever the ability to create and distribute money has been handed over by a craven Congress to private corporations and banking cartels without sufficient oversight and regulation, excessive speculation, financial recklessness, and moral hazard have acted like a plague of misery and stagnation on the real economy.
"Gentlemen! I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the Bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the Bank.
You tell me that if I take the deposits from the Bank and annul its charter I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin!
You are a den of vipers and thieves. I have determined to rout you out, and by the Eternal, (bringing his fist down on the table) I will rout you out."
From the original minutes of the Philadelphia bankers sent to meet with President Jackson February 1834, from Andrew Jackson and the Bank of the United States (1928) by Stan V. Henkels
I believe all of the above is entirely possible. Because we still have an unashamed cadre of quack economists and their ideologically blind followers blaming the victims, prescribing harsh punishments for the weak, laying all the blame on 'government' and not corrupt officials on the payrolls of Big Money, and giving the gods of the market and their masters of the universe a big kiss on the head, and expecting them to just do the right thing the next time out of the natural goodness of their unrestrained natures the next time.
What could go wrong with that?
Genuine reform. It's too much work, and too much trouble.
h/t Jesse Felder for the chart
»
- 30533 reads
- Printer-friendly version
- Send to friend
- advertisements -
CNBC will double-down on "the bottom is in" and "it was a false alarm" with liberal sprinklings of "cash on the sidelines" tomorrow. Bet on it.
Clinton War Room vet: Hillary ‘struggling’ to adapt as Trump changes the ruleshttp://tinyurl.com/p4q9gp8
Hillary struggling as Trump makes being a Fat Pig sound unappealling.
Yes, I’d say the contemporary “market” is analogous to vomit.
i skiied "Familiar Peak" 87 2000 and 2008. thrilling!
Why do people still buy into this running for president thing it does not matter who you think you voted in (you did not ) the same people will still be running the country (corperation) please wake up and smell the coffee this is all to keep idiots amused.
The magic word is 'leveraged', So CNBC will be out there telling the sheep to have one more taste of that sweet , sweet debt herion, because it won't kill you, Saint Krugman says so.....
Deutsche Bank will be the Lehman of 2015-2016. $75 Trillion of leveraged derivs on the books.
Hmm. BAC has 3,000% of derivatives to total assets and Morgan has 400 Trillion. I don't think they are going to make it either. The Fed has already received their living wills.
I nominate the PBOC to make it the Fantastic Four.
Jesse telling it like it is, once again.
He and Stockman have it down, but so few hear or listen.
Easier to be a slave and avoid the cognitive dissonance of seeing reality I suppose.
Apart from the truth; all one can do is make up "a" truth to themselves and that is what most do. Truth can be known, but one must go to the source; you know about whom I speak and his word is truth because he is truth personified.
Yeah, looked it up this morning. Thought there might be a fancy psych word for it, but no, it is simply called 'Denialism'. There are those who will never, ever, come out of it. Just by pass them if possible.
With the repeal of Glass-Steagall, market transparancy deteriorated while financial leverage began to soar. 2008 appears to have offered few lessons.
It's been a steady decline since Garn-St.Germain...1987 appears to have offered few lessons.
Its world war against the money-changers and NWO. Go Putin and Xi. Get them fuckers.
I'd rather not be ruled by Communists - thank you very much. Because when they liquidate debt....
I wonder if China will collapse and have to deal with the same problems first. Only dif being in China the politicos dominhate the financial sector where as in the west the financial masters dominate the politicos. This will allow China to take a more radical approach to a solution, (debt write down - citizen's dividend?) than would ever be permitted in the west...eg) Greece and all debts must be repaid in full even if this is a political and mathematical impossibility. Of course a write down may come eventually after all the life blood is sucked out leaving only a few slaves and a rock.
Must be doesn't mean will be. Keep squeezing the stone for more blood
China knows debt liquidation.
We are given some very bad choices. Slavery or death.
Andrew Jackson could have been played by Klaus Kinski.
A Future for Grace
“Vindictive Protectiveness: In the name of emotional well-being, college students are increasingly demanding protection from words and ideas they don’t like, and seeking punishment of those who give even accidental offense.” The Facebook Generation
That quantum Physics will favor parents capable of raising their own children, and mechanical physics will provide the opposing force, a slow, backwardizing empire building a replacement for parents, with a live cat in front and a dead one in back, should be of no great surprise. The problemsolution of the majority, giving up individual ability to adapt for the insurance of a peer pressure group, is that it cannot raise its own children beyond a closed system, but wants the benefit of life.
There’s a reason why government creates debt first, assigns it to your children, and creates make-work jobs for its voters, ratcheting up rent/income in an actuarial Ponzi until it can’t, leading to martial law and war. Finance and war are merely derivative symptoms of induced demographic variability.
Bank employs the majority as a pry bar, bailing out the bankrupt elites and giving them more credit to buy assets at deep discounts down the bankruptcy queue, maintaining inflationary pressure on real estate prices with artificial supply regulation. As a result of the artificial interest rate signals, the majority has children when it shouldn’t and doesn’t have children when it should.
Bank wins both ways, until it blows up. Greenspan desperately wanted to be popular, and he still hasn’t learned. There is no landing now. The only remaining option is to touch and go, and do the re-work before your economy runs out of fuel. Nero NIRPs.
No matter what you choose, expect a nightmare if you cannot complete the task in your own time. They say nurses live at night, starting over each shift, after the bureaucratic sh-show has come and gone. There are way too many HVAC certs, but if that is what you want to do, go where they are not, to jump the skill ladder.
Go where the fish are, and learn to build a pole out of whatever happens to be handy, income/rent. Take the available job that allows you to set up on the job you want, and build a business.
Back in the 70s, you could work a part-time job, get through medical school with no debt, and take over another doctor’s practice at retirement. Today, you spend all your time in school doing busy work, graduate with $500k debt, and become a bureaucrat, following insurance protocol written by an MBA, to maximize debt printed by government and booked as revenue to the company. If you actually want to accomplish anything, at great political misery, physician assistant is a better choice.
The economy is locked up because it can only be rebooted from the bottom to top, which runs contrary to the statistical superstition of communism, what you see. Basically, it is unlawful to be a parent, to follow your instincts, making dependency and extortion the rule of law. Short the empire out.
If you get caught up in a legal trap, knowing how it works doesn’t help, because the rules are changed as needed to ensure the outcome. Free speech is anything but free; better to leave it to the old-timers who can exist inside and out at the same time. Chimerica is not pulling the rope in opposite directions, strangling itself in the process, by accident.
The Bible is way ahead of all of this; way ahead and for most the reality of how bad it will be for choosing self, the world and Satan as opposed to the truth which is Christ is clearly evident. For most it ends very badly, only it never ends. Eternity is the absence of time. People work very hard to get into the place called hell; God sends people there only in the sense that we are eternal beings who will be with the stains of our sins or washed by the word of truth. Therefore, one group is cleansed or forgiven and has a place called heaven and the other has that other place. For the wages, a thing earned, of our sin is eternal death, which is merely separation from the mercy, grace, peace and love of our Creator.
I talked to God this morning, the Word is "Don't worry too much, everything is going according per plan".
Anyone who has a handle on the US monetary system should understand that the only thing left now is to keep the system gowing is to keep it growing. This will be continued until all other major systems are broken.
What is needed and will come about is some sort of new monetary system: likely something where bonds have a life in days not years and start a rapid depreciation after issuance. I also imagine some sort of FIAT script tied to specific commodities at a specific measure that have some sort of depreciation function built in.
Perhaps bankruptcy laws could be changed to keep the old nag going a bit longer, some method to clear debt as fast as it is created, otherwise it must be ever onward and upward per the system design specificatins as laid out in the Fed Paper "Modern Monetary Mechanics".
Actually more of the same would include less transparency and tighter controls; accomplished by digital buying and selling and not of the "Bit-coin" variety either, but of the implant variety. the Bible, God's word of truth given to us, is way ahead of the game. But then again; God is the ultimate insider without the stain of evil unlike man.
Hey Crock, TY for heads up. My youngest son brought up the implant thing this afternoon. Have not heard of it yet in any official way and cant find any official sources dealing with this. Will keep looking. Until then the meme is out and about the mid 20 year olds as a real concern. When I asked who was going to do it I got the old "They" answer.
With a little drill down follow up this was narrowed down to the government.
If true or not I do not know but the fact that the meme is going is SIGNIFICANT.
Hate to burst your bubble but the 20 somethings have already been implanted with this chip. It's called a Smart Phone.
You are right ... I haven't seen one lately who is not tethered
"Smart" phone. There's no such thing.
"I also imagine some sort of FIAT script tied to specific commodities at a specific measure that have some sort of depreciation function built in."
Already have the depreciation note!,,, the Federal Reserve Note.
The people in Jacksons time were better educated and still had a sense of honor.
Today,,,,,, forget it. May the best scammer win.
Bull flag on VIX
http://finviz.com/futures_charts.ashx?t=VX&p=h1
Burn down the disco
Hang the blessed DJ
Because the music that they constantly play
IT SAYS NOTHING TO ME ABOUT MY LIFE
Hang the blessed DJ
Because the music they constantly play
This whole sick system leaves me feeling revolted and enraged.
Part of me wants to leave this world to the vermin who have clawed and crawled their way into the light, and let them kill one another, and all the other poor suckers who, like me, had the ill grace to get hatched on this rock... just turn my back and walk away... or fly...
Part of me wants to fight back... to lay waste to every putrid, slimy, self serving toad whose perverse and audacious nature has led them to believe they somehow have the right to elevate themselves above their brothers...
Part of me sees myself as no better than the rotten filth that disgusts and sickens me...
And part of me believes in a creator with redeeming authority whose light beckons me and whose promise fills me with hope.
So far I am still banking on the last... pun intended...
How is that for a rant...?
Don't feed the Banksters.
'The banksterts, the banksters' I get tired of the blame game. Once again what's going on is the majority simply drinkinbg the kool-aid, many just doing what historically (long term) has worked. Even some that 'get it' have waded in after 7 years of never-done-in-this-country-before policies. Its been an excrutiating time to be 'waiting it out.'
One has to have the power of one's convictions otherwise you're in when it all implodes. How many here actually have this power of their convictions and how many are just mouthing off?
Lot's of complaints about gubmint corruption, from the same people supporting Citizens United. A severe case of cognitive dissonance.
If the creator had such redeeming authority why did it create such a fucked up world.