A Quick Look At Goldman’s Takeover Of The US Judicial System: NY Fed Edition

Moments ago, in the aftermath of the latest scandal involving Goldman’s Rohit Bansal getting material information from a NY Fed employee, finally admitted that the original Carmen Segarra “whistleblower” allegations, namely that there was a material weakness (as in it is non-existent) when it comes to the NY Fed’s supervision of TBTF banks, by which we mean Goldman Sachs here, were founded and valid when at 4pm on the dot the NY Fed released this:
The Federal Reserve Board on Thursday announced two separate reviews that are underway at the Federal Reserve System to ensure that the examinations of large banking organizations are consistent, sound, and supported by all relevant information.
At the request of the Board, its Inspector General is examining two aspects of the Federal Reserve System’s examination program for large banking organizations: Whether there are adequate methods for decision-makers at the relevant Reserve Banks and at the Board to obtain all necessary information to make supervisory assessments and determinations; And whether channels exist for decision-makers to be aware of divergent views among an examination team regarding material issues.

This post was published at Zero Hedge on 11/20/2014.

10 Examples Of The Social Decay That Is Eating Away At America Like Cancer

It isn’t just our economy that is crumbling. Something is happening to America that no amount of money will be able to fix. Everywhere around us we can see evidence of the social decay that is systematically eating away at the foundations of our society. It can be found on the streets of our inner cities, in dark basements in extremely rural communities, in the most prestigious boardrooms on Wall Street, and definitely in the halls of power in Washington. Bringing in an entirely different crop of politicians or printing gigantic mountains of money is not going to solve this problem, because it exists in the hearts of millions of ordinary men and women. The truth is that we really need to take a good, long look at ourselves in the mirror, because we need to take a 180 degree turn as a nation. What we are doing now is clearly not working, and the longer that we take to address this problem the worse it is going to get. The following are 10 examples of the social decay that is eating away at America like cancer. Individually, they could be dismissed as isolated incidents. But I could have easily listed 100 examples or 1000 examples. Every single day, we are inundated with reports like these. The symptoms of the decay of our society are all around us. We just have to be willing to look at them…
#1 It seems like many of the most horrific crimes these days are happening in middle America. For example, a woman was recently hit over the head, raped and set on fire in a park in Wichita Kansas…

This post was published at The Economic Collapse Blog on November 20th, 2014.

Wall Street Stunned As Iceland Dares To Jail Banker Involved In 2008 Crash

The impossible is possible. Never say never. Wall Street bankers are staring agog at headlines coming from Europe where, in Iceland, the former chief executive of one of the largest banks in the country which was involved in crashing the economy in 2008 has been sentenced to jail time. As Valuewalk reports, in receiving a one year prison sentence, Sigurjon Arnason officially became the first bank executive to be convicted of manipulating the bank’s stock price and deceiving investors, creditors and the authorities between Sept. 29 and Oct. 3, 2008, as the bank’s fortunes unwound, crashing the economy with it. It appears he was as shocked by the verdict as Wall Street-ers are, “this sentence is a big surprise to me as I did not nothing wrong.” It was likely all for the people’s own good…

This post was published at Zero Hedge on 11/20/2014.

This Is Not Good: The Yen Is Melting Down

The yen is down 1% today vs. the $. This is a huge move in one day for any currency. The yen has lost well more than half of its value vs. the dollar since the beginning of 2012. In other words, the yen is now collapsing.
If the yen goes ‘super-nova’ – i.e. collapses – it could bring down the U. S. The U. S. QE/Keynesian Ponzi scheme relies on Japan to help keep the scheme together. The yen is beginning to hyperinflate and it is now entering ‘parabolic’ mode. First, this will cause the Japanese banks to implode because they’re loaded up with Japanese stocks and bonds, the way our banks are loaded with Treasuries. The banking system would not survive a yen collapse.

This post was published at Investment Research Dynamics on November 19, 2014.

Obama Nominee, Antonio “Tax Inversion” Weiss Discloses Up To $203 Million In Assets

It appears Lazard’s investment banker Antonio Weiss’ “help” in tax inversions is not ‘unpatriotic’ enough to scare President Obama off – as we suspect Weiss’ bundling and donating help more than offset any ethical challenges. However, in a somewhat eye-opening financial disclosure, Bloomberg reports that Obama’s nominee for undersecretary of Treasury for domestic finance, has between $54 million and $203 million in assets spread across various family trusts and his anticipated compensation in 2014 is between $5 million and $25 million. It’s good to know the ‘people’ are well-represented once again in Washington…

This post was published at Zero Hedge on 11/20/2014.

Yen Surges After Japan FinMin Says Speed Of Yen Collapse Has Been Too Fast

First the Japanese central bank proceeds to monetize all new debt issuance and is on route to holding 50% of all 10 Year bond equivalents within 2 years, sending the Yen year plummeting to 7 years lows daily, and then – just like Europe – Japan gets cold feet and realizes that the next steps are USDJPY 145 , meaning a complete collapse of the Japanese economy and a full on FX, if not shooting, war in Asia. So what does Japan’s finance minister Aso do? Why he talks the Yen higher, in the process completely confounding the FX algos, and risking a full blown collapse in the Nikkei just 3 weeks ahead of the Japanese snap elections.

This post was published at Zero Hedge on 11/20/2014.

Dutch Mainstream Media Coverage of Gold

Our pal, Koos Jansen, sent over this link earlier today. With the vote on the Swiss Gold Initiative looming on the 30th of this month, it’s quite interesting to see how the discussion is being framed in Europe.
This clip is only seven minutes long and it comes complete with English subtitles. Koos is prominently featured and, as a frequent visitor to this site, he tucks in some observations that echo many of the themes frequently discussed here. However, it’s also worth watching for the coverage and discussion of the Swiss Gold Initiative and the disgusting Keynesian propaganda and lies that are spouted to demean it. The argument is again promulgated that a strong Franc is somehow bad for the Swiss economy. Says who? Swiss Big Business, I guess. But what about the average Swiss citizen who is seeing the value of his work and savings constantly eroded by a Swiss National Bank intent upon depreciating their currency?
Also be sure to catch the “commentary” provided by someone named Ivo Arnold, purportedly an “economic expert”. This Keynesian goon not only claims wrongfully that the gold standard prolonged The Great Depression and comes with “so many downsides to it”, he also arrogantly belittles the Swiss by smirking and proclaiming that other Europeans see them as “a weird country”.
This is the arrogance that MUST BE DEFEATED. You have a choice Switzerland. You can either reclaim your sovereignty and historical independence by voting “YES” on November 30 or you can side with pompous fools like Ivo Arnold and his soulmates at The European Central Bank.
It’s up to you. My hope is that you choose wisely, for yourselves and your posterity.

This post was published at TF Metals Report on November 20, 2014.

3 Things Worth Thinking About (Vol. 18)

Stock/Bond Ratio Not Confirming Rally Following the October swoon, stocks have vaulted to all-time highs. As I discussed previously in “Sentiment Is Off The Charts Bullish,” there have only been few occasions where investors have felt so “giddy” about the financial markets. Such periods of exuberance have never ended well for investors as they were deluded by near-term“greed” which blinded them to the building risks.
One of the things that I pay attention to is the ratio of the S&P 500 compared to longer duration bonds. The theory is that when investors are willing to take on more risk, money flows out of “safe haven” like bonds to equities as portfolio allocations become more aggressively tilted. The opposite occurs as investors began to reduce “risk exposure” in portfolios and focus more on “safety.”
As you can see in the chart below, there is a very high level of correlation between the rise and fall of the stock/bond ratio and the S&P 500. Well, that is until just lately.

Notice that currently, the ratio has deviated substantially from its normal correlation with the S&P 500 index. Importantly, this deviation began precisely when the Federal Reserve began extracting their liquidity support from the financial markets at the beginning of this year. With money rotating from “risk to safety” it is likely a clear warning that risks of a more substantial correction are building.

This post was published at StreetTalkLive on 20 November 2014.

Charles Schwab Urges The Fed To Raise Interest Rates “As Quickly As Possible”

For America’s 44 million senior citizens, plus tens of millions of others who are on the threshold of retirement, last month marked a watershed moment that is worth celebrating. At the end of October, the Federal Reserve announced the first step in returning to a more normal monetary policy. After nearly six years of near-zero interest rates and quantitative easing, the Fed is ending its bond-buying program and has signaled a plan to eventually begin raising the federal-funds rate, raising interest rates to more normal levels by 2017.
U. S. households lost billions in interest income during the Fed’s near-zero interest rate experiment. Because they are often reliant on income from savings, seniors were hit the hardest. Households headed by seniors 65-74 years old lost on average $1,900 in annual income over the past six years, according to a November 2013 McKinsey Global Institute report. For households headed by seniors 75 and older, the loss was $2,700 annually.
With a median income for senior households in the U. S. of roughly $25,000, these are significant losses. In total, according to my company’s calculations, approximately $58 billion in annual income has been lost by America’s seniors since 2008.
Retirees depend on income from their savings for basic living expenses. Without that income, many seniors have taken on greater risk to increase the potential yield on their savings, or simply spent down their nest eggs. After decades of playing by the rules, putting off spending and socking away money, seniors have taken it on the chin. This strikes a blow at the core American principles of self-reliance, individual responsibility and fairness.

This post was published at Zero Hedge on 11/20/2014.

The NY Fed’s Attempt To Explain That It Is Not A Subsidiary Of Goldman Sachs

The most shocking, if already completely buried, news of the day was that – in yet another confirmation that Goldman Sachs is in charge of the New York Fed – a NY Fed staffer was colluding and leakingconfidential, material information to a 29-year-old Goldman vice president, himself a former Federal Reserve employee. This only happened because on the day Carmen Segarra disclosed her 47 hours of “secret Goldman tapes” on This American Life, Goldman executives asked the former Fed staffer where he had gotten what appeared to be confidential information from. To nobody’s surprise the answer was: The New York Fed.
So as the latter, also known as the biggest hedge fund of the western world with $2.7 trillion in AUM, is scrambling to once again prove it is shocked, shocked, that it has become merely the latest subsidiary of Goldman Sachs, Inc., it released the following statement explaining what “really” happened.
From the NY Fed:

This post was published at Zero Hedge on 11/20/2014.

If You Are A US Investor Who Is Bullish Japan, Look Away

Day after day, well-dressed talking heads are paraded on business media and proclaim how cheap Japan is, how Abenomics will work (he promise… if it doesn’t we’ll have to question everything we believe in), how GDP is backward-looking (so ignore it… and every other economic indicator), and how being long Japanese stocks (of course, hedged back to dollars because you don’t want to take the currency risk that Abe is creating) is a “no brainer.” The problem with that strategy is… in 2014, the JPY-hedged Japanese stock market investor in the US has not had a daily close in the green year-to-date and is down over 5% for the year… but it gets worse.

This post was published at Zero Hedge on 11/20/2014.

Russia Grabs Another 18.7 Tonnes Of Gold In October From The Market

While the mainstream media is focused on the physical gold outflows from the GLD ETF, the alternative media keep on focusing on the gold reserves in China, Russia, India, Turkey.
We definitely believe that, without participation by Western investors, there is no big chance to see higher gold prices any time soon. On the other hand, the evolution in the physical market as a consequence of the insatiable gold demand in the East will have most likely effects longer term. Although we have written about it extensively, this point was nicely summarized very recently in our piece ‘How Eastern Gold Demand Is Transforming The Gold Market’:

This post was published at GoldSilverWorlds on November 20, 2014.

France Private Sector Output Drops 7th Consecutive Month, Orders Stagnate in Germany, Eurozone Flirts With Contraction

Let’s take a look at weaker than expected reports from the Eurozone in aggregate, and France and Germany in particular.
The Markit Flash France PMI shows French private sector output falls for seventh successive month.
Key points:
Flash France Composite Output Index rises to 48.4 (48.2 in October), 2-month high Flash France Services Activity Index climbs to 48.8 (48.3 in October), 3-month high Flash France Manufacturing Output Index falls to 46.5 (48.0 in October ), 3-month low Flash France Manufacturing PMI drops to 47.6 (48.5 in October ), 3-month low Summary:
While service providers reported the slowest fall in activity of the current three-month period of decline, manufacturers indicated the sharpest reduction in output since August. Lower output at French private sector companies reflected a further decrease in new business. November marked the third consecutive month in which new work has fallen, with the rate of decline accelerating to the sharpest since June 2013.
Employment in the French private sector continued to fall in the latest survey period, in line with the trend observed since November 2013.
French private sector companies reported another drop in outstanding business during November. The latest fall was the seventh in successive months and the sharpest since M ay 2013. Service providers indicated an accelerated decline in backlogs, whereas manufacturers reported a slightly slower fall.
Price trends continued to diverge in November. Input costs rose, with the latest increase the fastest in three months, albeit modest over all. Service providers and manufacturers reported similar rates of input price inflation. However, output prices fell further, amid reports of strong competitive pressures.
My comments on France…

This post was published at Global Economic Analysis on November 20, 2014.

The Angel Clark Show: Everything You Need to Know About Escaping to Mexico

The following video was published by TheDollarVigilante on Nov 20, 2014
Jeff and Angel discuss life in Acapulco, answer questions from viewers on issues regarding moving to and life in, Acapulco Mexico. Topics include: US police state psychological oppression and extortion, very little government involvement in the deep south of Mexico, laid back lifestyle, warm climate, alcohol, traffic cars and licenses, bars, guns, don’t drink the water myth, taxis, Netflix, 100mb internet!

SP 500 and NDX Futures Daily Charts – Saving Private Equity

There was an astonishingly high Philly Fed number this morning.
It certainly helped to bring stocks out of their early slump.
I suspect that there was some misapplied seasonality in there somewhere, since the unemployment number and the rest of the bigger picture certainly does not support it.
I decided to say positive things to day or say nothing at all, so I will leave it at that. Except that I reiterate my long standing belief that this experience of serial bubbles and widespread financial fraud will lead to new thinking in economics, and a change in the current financial system and Federal Reserve structure. I can only hope that it will be for the better, and they will not have to knock more than two zeroes off the Dollar.

This post was published at Jesses Crossroads Cafe on 20 NOVEMBER 2014.

Stocks Up, Bonds Up, Gold Up, Oil Up, USD Up… Give Up?

For the 25th day in a row (one short of an all-time record), the S&P closed above its 5-day moving-average. Despite dismal Asian, European, and US PMIs, US equity markets sreaked higher at the US Open, tagging yesterday’s highs, then stalling when Europe closed. Small Caps led the day as shorts were squeezed once again but Trannies and Russell 2000 remain negative on the week. US Treasury yields dropped notably after European and ended the day 2-3bps lower (with 30Y unch on the week). The USD rose very modestly close-to-cvlose but traded lower thru the EU and US sessions (AUDJPY was in charge of stocks today). Copper dropped on China growth fears but oil, silver, and gold rose on the day (leaving gold 0.5% on the week). HY credit slammed tighter with stocks early then decoupled after EU closed. Dow & S&P close at record highs.

This post was published at Zero Hedge on 11/20/2014.

Another Krugman Kontradition: New Taxes, Yes and No

I coined the term ‘Krugman Kontradiction’ to refer to the Nobel laureate’s tendency to lead his readers in one direction on an issue, then do a total about-face when circumstances make that convenient, while whipping up a new set of assumptions and emphases in his economic analysis so as to reconcile the switch.
I’ve got a great new illustration of that when it comes to tax hikes and how our Keynesian pundit incorporates them into his model of the world.
First, on November 13, Krugman had a post called ‘Why the One Percent Hates Obama.’ He had the following commentary and graph:
A peculiar aspect of the Obama years has been the disconnect between the rage of Obama’s enemies and the yawns of his sort-of allies…
The latest case in point: taxes on the one percent. I keep hearing that Obama has done nothing to make the one percent pay more; the Congressional Budget Office does not agree:

This post was published at Tea Party Economist on November 20, 2014.

Another Triple-Fat-Finger VIX Day Saves Stocks

Ugly data in Asia, Europe, and US PMI meant US equities opened gap-down… that was unacceptable to ‘someone’ and so the “most shorted” names were squeezed. However, after 10 minutes the ramp started to fade… and so the big boys ‘fat-fingered’ VIX and that rescued the dip. That would be fine… but it happened again at 958ET when stocks started to fade again and suddenly VIX was lit up and zoom… stock momentum was ignited and all was well in the world… Broken record? Yes! But clearly someone has to take note of this rigging…

This post was published at Zero Hedge on 11/20/2014.