White Shoe Boys

The Financial System Doesn’t Just Enable Theft, It Is Theft

"Needless to say, those with access to leveraged credit and the issuance of fiat money have the power to make claims on resources without actually having produced anything of value or earned tangible forms of wealth. Those with political power and wealth naturally have monopolies on the issuance of credit and paper money, as these enable the acquisition of real wealth without actually having to produce or earn the wealth. This system is intrinsically unstable, as the financial claims of credit and fiat money on limited real-world resources and wealth eventually exceed real-world resources, and the system of claims collapses in a heap." Continue reading →

Continue ReadingThe Financial System Doesn’t Just Enable Theft, It Is Theft

Overstock.com CEO: Steve Cohen Responsible For Corruption That Cost Hundreds Of Thousands Of Jobs

"Overstock.com CEO Patrick Byrne colorfully explained in his own words why he took out a full page ad in the Wall Street Journal mocking SAC Capital's Steve Cohen Saturday. Since 2005 Byrne has been saying that powerful market actors have been working to destroy his company. In 2010 he identified them as Michael Milken and SAC's Steven Cohen. Two years later, emails accidentally leaked by lawyers representing a number of Wall Street banks described how the banks were allegedly naked short-selling Overstock.com stock and advising their hedge fund clients on how to do the same. SAC Capital, as you know, is one massive hedge fund client." Continue reading →

Continue ReadingOverstock.com CEO: Steve Cohen Responsible For Corruption That Cost Hundreds Of Thousands Of Jobs

‘Way Harder’ For Goldman And Morgan Stanley To Get Out Of Commodities Than JP Morgan

"Goldman Sachs and Morgan Stanley two decades ago became known as the 'Wall Street Refiners' for their mastery of both financial and physical commodities. But since 2012 Morgan Stanley has looked at selling its commodity arm and Goldman has made moves to scale back its physical operations. Letters between the banks and the Federal Reserve, received by Reuters under the Freedom of Information Act, show both banks are in discussions on conforming or divesting activities that fall outside the normal scope of commercial banks." Continue reading →

Continue Reading‘Way Harder’ For Goldman And Morgan Stanley To Get Out Of Commodities Than JP Morgan

Bullish at the Bottom: Why Now is the Time to Buy Commodities

"At first glance, the correction seems to support naysayers who believe the supercycle in commodities has ended, such as Credit Suisse analysts who had declared that the 'era is over' in its digital magazine The Financialist. We disagree. Instead, we see severe price declines as possible buying opportunities during this ongoing commodity supercycle. Consider the extreme pessimism on gold. As one measure of how bears have ganged up against the yellow metal, take a look at the spike in the level of short positions on the precious metal since the beginning of the year. As of the beginning of July, the number of outstanding gold short contracts was close to 140,000!" Continue reading →

Continue ReadingBullish at the Bottom: Why Now is the Time to Buy Commodities

Bernanke Must Testify Under Oath

"In September 2008 the Federal Reserve Bank of New York, a privately owned entity, paid $182 million to buy 80% of the busted insurance firm AIG. Why would any privately owned company pay par value for the shares of a company that had only hours to live? That’s what the court wants to know. Why? Because — you’ll love this — the former CEO of the almost busted insurance company says he was cheated. The value of his stock was diluted. How? By all that money. All that money let an outside agency — the New York FED — buy 80% of his worthless shares. He wants payback. From whom? 'The U.S. government.'" Continue reading →

Continue ReadingBernanke Must Testify Under Oath

US judge says ex-AIG CEO can depose Bernanke over bailout

"Federal Reserve Chairman Ben Bernanke should testify in the lawsuit by American International Group Inc's former chief Maurice 'Hank' Greenberg against the United States over the insurer's 2008 bailout, a judge ruled on Monday. Judge Thomas Wheeler of the U.S. Court of Federal Claims rejected the government's effort to keep Bernanke from being deposed, saying the Fed chairman was a 'central figure' in the decision to bail out AIG. 'Indeed, the court cannot fathom having to decide this multi-billion dollar claim without the testimony of such a key government decision maker,' Wheeler wrote." Continue reading →

Continue ReadingUS judge says ex-AIG CEO can depose Bernanke over bailout

Are We Investing or Are We Just Dodging Thieves?

"The skill we need today is not traditional investing skill; it is thief-dodging skill. It consists of knowing the thieves’ techniques and whom they are targeting, of knowing the bad neighborhoods to avoid, knowing how to avoid being a target, trying to stay one jump ahead of them as they target new victim groups. These are skills people had back in the Dark Ages, and as we enter a new Dark Ages, these are skills we need again. Millions of middle class Americans are being wiped out by thieves, and millions more will be wiped out as trends continue. But those who can successfully dodge the thieves can continue to maintain some civilized standards as they hope for better days." Continue reading →

Continue ReadingAre We Investing or Are We Just Dodging Thieves?

JPMorgan Chase stops trading ‘non-financial’ commodities amid federal pressure

"JPMorgan Chase & Co is exiting physical commodities trading, the bank said in a surprise statement on Friday, as Wall Street’s role in the trading of raw materials comes under unprecedented political and regulatory pressure. After spending billions of dollars and five years building the banking world’s biggest commodity desk, JPMorgan said it would pursue 'strategic alternatives' for its trading assets that stretch from Baltimore to Johor, and a global team dealing in everything from African crude oil to Chilean copper. The bank said it will continue to trade in financial commodities such as derivatives and precious metals." Continue reading →

Continue ReadingJPMorgan Chase stops trading ‘non-financial’ commodities amid federal pressure

SEC’s Khuzami Uses Revolving Door to Make $5 Million

"Robert Khuzami, the former head of enforcement at the U.S. Securities and Exchange Commission, is joining Kirkland & Ellis LLP, reports BusinessWeek. Mark Filip, a partner in charge of Kirkland’s government enforcement defense and internal investigations, said Khuzami will help immediately in securities enforcement defense, advising boards and companies and counseling financial institutions on securities regulations." Continue reading →

Continue ReadingSEC’s Khuzami Uses Revolving Door to Make $5 Million

High frequency trader fined more than $3m by regulators

"Financial regulators in the UK and US have fined a high frequency trader and his firm more than $3m (£1.95m) for manipulating commodities markets. The UK's Financial Conduct Authority (FCA) fined Michael Coscia $903,176, while two US regulators levied the rest on him and his company, Panther Energy. Between 6 September 2011 and 18 October 2011, US-based Mr Coscia used algorithmic programs that he developed to create false orders for oil and gas on trading exchanges in the US and UK. A computer program placed and quickly cancelled trades to manipulate the price of commodities, an illegal process known as 'layering' and 'spoofing'." Continue reading →

Continue ReadingHigh frequency trader fined more than $3m by regulators