Yearly Archives: 2013

Eric Holder Owes the American People an Apology

"Last year when U.S. Attorney General Eric Holder boasted about the successes that a high-profile task force racked up pursuing mortgage fraud, the numbers he trumpeted were grossly overstated. Originally the Justice Department said 530 people were charged criminally as part of a year-long initiative by the multi-agency Mortgage Fraud Working Group. It now says the actual figure was 107 -- or 80 percent less. Holder originally said the defendants had victimized more than 73,000 American homeowners. That number was revised to 17,185, while estimates of homeowner losses associated with the frauds dropped to $95 million from $1 billion." Continue reading →

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‘London Whale’ Bruno Iksil Won’t Be Prosecuted By Justice Department

"Former JPMorgan Chase employee Bruno Iksil will not be prosecuted by the Justice Department, the Wall Street Journal reports, citing a person close to the situation. Iksil is the so-called 'London Whale' at the center of the trading scandal that lost JPMorgan, the country's biggest bank by assets, some $6.2 billion in 2012. The New York Times reported Friday that U.S. authorities planned to arrest two former JPMorgan employees for their roles in the scandal, and Iksil will need to play a role in any arrests related to the trades, Reuters reported Thursday." Continue reading →

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Investors euphoric as US margin debt reaches ‘danger’ levels

"Bank of America’s monthly survey of investors showed a dramatic rise in confidence in August, with a net 72pc expecting growth to accelerate over the next year. It is the highest in reading since 2009. Almost everybody expects bond yields to rise as deflation fears evaporate, with just 3pc still worried about the risk of an economic relapse. Managers have slashed their bond allocation to a 28-month low. The exuberant mood comes as margin debt on Wall Street hovers near $377bn, just below its all-time high and well above peaks before the dotcom crash and the Lehman crisis." Continue reading →

Continue ReadingInvestors euphoric as US margin debt reaches ‘danger’ levels

U.S. 10 Year Bond Yields in Perspective (1790-Present)

"The move in the 10 year yields has led to all sorts of speculation as to the underlying cause. Since none of this is within our my control, all we can do is look at this from a longer term perspectives to put this into broader context. Three takeaways: 1) Bond Yields can be driven to extreme son the upside and on the downside. 2) It takes many years or decades to unwind a move like that 3) Rates could go appreciably higher if the 30 year bond bull market is over. Looking at yields from an historical perspective, there is still plenty of room for yields to rise if they simply 'normalize.'" Continue reading →

Continue ReadingU.S. 10 Year Bond Yields in Perspective (1790-Present)

International Investors Dump $40.8 Billion in Treasuries, the Most Ever

"Foreign holders dumped a whopping $40.8 billion in long-term Treasuries, the biggest exodus from bonds in the history of the U.S. Worse, June was actually the third month of mass dumping in the past four, for a total of $79 billion. It wasn’t just government bonds, either. Foreigners dumped $116 million of bonds made up of packaged U.S. mortgages. They sold $5.2 billion of Fannie Mae, Freddie Mac and Ginnie Mae bonds, and $5 billion in corporate bonds. And they unloaded $26.8 billion of U.S. stocks. More international capital flowed out of U.S. markets than at any time in history, worse even than at the depths of the 2008 credit crisis." Continue reading →

Continue ReadingInternational Investors Dump $40.8 Billion in Treasuries, the Most Ever

Is Slowing M2 Money Supply Signalling Another Stock Market Crash?

"According to Austrian Business Cycle Theory, when a central bank slows its money printing that has fueled a manipulated stock market boom, the stock market is very vulnerable to a crash. Murray Rothbard in his book America's Great Depression explained how it occurred before the October 1929 crash. The money supplied slowed before the October 1987 crash. It slowed before the 2008 September Financial Crisis. And it is slowing again now." Continue reading →

Continue ReadingIs Slowing M2 Money Supply Signalling Another Stock Market Crash?

Fed links leveraged ETFs to 1987 crash

"Federal Reserve economist Tugkan Tuzun has warned leveraged exchange-traded funds could be the next problem for the stock market and could trigger a crash similar to that in 1987. Leveraged ETFs set out to generate multiples of daily index returns by gearing their portfolios twice or three times over. Turzun points to portfolio insurance, generally blamed for triggering the 1987 crash. Thanks to their trades, and their gearing, leveraged ETFs can have an outsized impact on the market. Tuzun argues that a 1% move in broadly-based market indices can produced rebalancing flows totaling $1 billion." Continue reading →

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Lexicon Shift Alert: global warming gets another name change

"The White House has changed its vocabulary again — first 'global warming' was changed to 'climate change' — and now the correct name of the scam is 'carbon pollution.' It’s a way to paint carbon dioxide as if it were black soot billowing out of industrial smokestacks. Carbon dioxide is actually what humans exhale, and it’s food for plants." Continue reading →

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The Secret History of G.I. Joe

"Joe, like much else in his era, was hardly what he seemed. Launched the year Lyndon Johnson ran for president as a peace candidate against Barry Goldwater while his administration was secretly planning the large-scale bombing of North Vietnam, Joe, too, was involved in a cover-up. For if Joe was a behemoth of a toy soldier, he was also, though the word was unmentionable, a doll. War play Joe-style was, in fact, largely patterned on and due to a 'girl' -- Mattel’s Barbie." Continue reading →

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5 Myths Used to Justify Death By Drone and America’s Assassination Policy

"America’s never-ending war on terrorism is almost always depicted in the mainstream media as a military and intelligence agency fight on a global battlefield. But it is also a propaganda war where the public is fed inaccuracies from Washington, especially when it comes to overseas killings by U.S. military drones. Here are five myths perpetuated by the military and its weapons makers that seek to make Americans feel good about drones and the White House’s policy of targeted assassinations." Continue reading →

Continue Reading5 Myths Used to Justify Death By Drone and America’s Assassination Policy