The Biggest Welfare Queens of All ...
Bhutan's guiding national policy is Gross Domestic Happiness, as a reference point for Net Value. Here in the U.S., we give lip-service to all these values, but ask yourself: where do we spend most of our time? Serving our masters in the State/market economy, creating Net Worth for ourselves or someone else. Yes, we all still need to earn a livelihood, but imagine a society constructed around generating Net Value and Gross Domestic Happiness instead of Net Worth. The power structure would collapse because none of these activities or accomplishments generate enough profits or taxes to keep the Machine operational. A brush with mortality has a way of stripping away the superficial and the false. How many ghosts are we living with while our real lives have been abandoned as insufficiently ambitious and net-worthy?
No, American Banks DON'T Need to Be Big to Compete with Bigger Foreign Rivals
There's a reason why Wall Street is so "beloved" by 99% of the people, and that reason is today best summarized by Jamie Dimon's 'witty' retort to Mike Mayo, perhaps the most hated banking analyst, who asked the JPM CEO a simple question - why affluent customers would not pick UBS over JPM due to a mismatch in capital ratios, to which Dimon's response is even simpler: "that's why I'm richer than you." No logic, no rationale: all about the bottom line, which to Jamie at least is all that matters. As for Mr. Dimon's pending application to purchase a Micronesian private island, we would surmise that the wealth mismatch is far more due to the too big fail banking system which means every time Mr. Dimon uses hundreds of billions in excess deposits to corner the IG9 market or to pursue any other uber-levered venture which blows up in his face even as the firm's highly accurate VaR.xls spreadsheet outputs the RAND() function, the government, also known as JPM's OpCo 1, will rapidly rush to bail him, and his riches, out.
- Wal-Mart's Sales Problem—And America's (WSJ)
- Investors fret that Italy may undermine ECB backstop (Reuters)
- Monti Government Mulls Delaying Monte Paschi Bailout (BBG)
- Norway Faces Liquidity Shock in Record Redemption (BBG)
- ECB's Praet Says Accommodative Policy Could Lose Effectiveness (BBG)
- EU Chiefs Tell Italy There’s No Alternative to Austerity (BBG)
- New Spate of Acrimony in congress As Cuts Loom (WSJ)
- BOE's Tucker hints at radical growth moves (FT)
- Kuroda Seen Getting DPJ Vote for BOJ, Iwata May Be Opposed (BBG)
- Russian Banks Look to Yuan Bond Market (WSJ)
- Dagong warns about rising debt (China Daily)
- Italy Election Impasse Negative for Credit Rating, Moody’s Says (BBG)
Read on as the MSM pick up on what I've been ranting about for 2 years. Virtually every penny of the big banks' profits consists of taxpayer bailout money. This doesn't include the ~60% of revenue paid out as bonuses, of course!
It was just a matter of time before the most powerful crony capitalist bank in America decided to join the housing trade. Making money running the food stamp program just wasn’t enough for Your Crony Highness Jamie Dimon and company, it’s time to join his financial oligarch brothers in the bidding war to corner the housing market and become your overlord. That way they can control how you eat (food stamps) and where you sleep. It’s become very clear what the large financial interests in these United States are attempting. Funnel all the low interest crony American money, with a dash of Chinese laundered money, into the “housing recovery.”
Inverted Klepto Marxists on the march...
Today is Tim Geithner's last day as Treasury Secretary. Below are some quotes from various exit interviews and recaps conducted with the former NY Fed president. We provide our succinct annotations to some of his answers.
On January 22, 2012, candidate François Hollande called banks the “enemy.” Now you’d think he is being tutored by Jamie Dimon.
After digesting the opinions of the shills, shysters and scam artists, I am ready to predict that I have no clue what will happen during 2013. The fog of uncertainty is engulfing the nation, making consumers hesitant to spend and businesses reluctant to hire or invest. Virtually all of the mainstream media, Wall Street banks and paid shill economists are in agreement that 2013 will see improvement in employment, housing, retail spending and, of course the only thing that matters to the ruling class, the stock market. Even among the alternative media, there seems to be a consensus that we will continue to muddle through and the day of reckoning is still a few years off. Those who are predicting improvements are either ignorant of history or are being paid to predict improvement, despite the overwhelming evidence of a worsening economic climate. The mainstream media pundits, fulfilling their assigned task of purveying feel good propaganda, use the 10% stock market gain in 2012 as proof of economic recovery. The facts prove otherwise... Every day more people are realizing the con-job being perpetuated by the owners of this country. Will the tipping point be reached in 2013? I don’t know. But the era of decisiveness and confrontation has arrived. The existing social order will be swept away. Are you prepared?
Everyone's favorite bull made another magnificently arrogant appearance on TV this morning. Following his recent CNBC embarrassment, Bloomberg TV interviewed the outperforming hedge fund manager this morning - during which he explained his 'where else ya gonna go' bullish stocks thesis. From expectations for an "explosion of greatness" in the US to his gratuitous flirtation, he appears to have the inane ability to use many words where few are needed and his bullish thesis has the ring of any and every guest pumper (with nothing new to add): the same supposedly 'low' multiple, central-banks-are-printing, and wide spread between bond and equity yield argument that everyone's mom can explain. From expectations for the 'great rotation' from bonds to stocks and his 50%-upside prediction in Citi, Tepper is "balls to the wall" the best guest ever on any stock-touting network. However, one little thing gets in the way - the last time the Great-and-Powerful Tepper appeared so overtly bullish of stocks (and financials specifically), he also was dumping his holdings into the rally that followed.
Yesterday we broke the news of what is prima facie evidence, sourced by none other than the Federal Reserve's official August 16, 2007 conference call transcript, that then-NY Fed president and FOMC Vice Chairman Tim Geithner leaked material, non-public, and very much market moving information (the "Geithner Leak") to at least one banker, in this case then Bank of America CEO Ken Leiws, in advance of a formal Fed announcement - an act explicitly prohibited by virtually every capital markets law (and reading thereof). It was refreshing to see that at least several other mainstream outlets, including Reuters, The Hill and the NYT, carried this story which is far more significant than Season 1 of Lance Armstrong's produced theatrical confession and rating bonanza. What, however, the mainstream media has not touched upon, yet, is just how profound the market response to the Geithner Leak was, and by implication, how much money those who were aware of what the Fed was about to do, made. Perhaps, it should because as we show below, the implications were staggering. But perhaps what is even more relevant, is why the Fed's previously disclosed details of Mr. Geithner's daily actions at the time, have exactly no mention of any of this.
“Repression” is what Dallas Fed President Richard Fisher called “the injustice of being held hostage to large financial institutions”
A week ago, when Wells Fargo unleashed the so far quite disappointing earnings season for commercial banks (connected hedge funds like Goldman Sachs excluded) we reported that the bank's deposits had risen to a record $176 billion over loans on its books. Today we conduct the same analysis for the other big two commercial banks: Wells Fargo and JPMorgan (we ignore Citi as it is still a partially nationalized disaster). The results are presented below, together with a rather stunning observation.