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Showing posts from February, 2013

Class Divide: UK masses slide into poverty as austerity ramps up - Max Keiser

Class Divide: UK masses slide into poverty as austerity ramps up - Max Keiser

Thanks to the banksters, prices have risen faster than wages for a LONG TIME. This is a must see video, that shows what is happening in the UK because of austerity!

Generational Breakdown: Gen Y Millenials Risk Averse

Here is a breakdown of generations by years:


2000 -Present - New Silent Generation or Generation Z
1980-2000 - Millennials or Generation Y
1965-1979 - Generation X
1946-1964 - Baby Boom

Millenials, or Gen Y's are risk averse. They are so risk averse that they have two names! Talk about hiding in the woodwork. Seriously, though, there are reasons why they are risk averse. And risk averse actually hurts the bankers who got us into this credit crisis mess in the first place.

The question remains, will the Millenials bite at the obvious housing bubble Ben Bernanke wants? That is the question. Will the head of the Federal Reserve get his way, and make Jamie Dimon happy? Or will people refuse the easy loans that surely will come their way?

I hope the Gen Y Millenials stay risk averse. They will be saved from a life of debt.

Guest Post: It's Always The Best Time To Buy | Zero Hedge

Guest Post: It's Always The Best Time To Buy | Zero Hedge

 This is a must read article. Here are some quotes that started it off. The more things change the more they stay the same. Watch out small investors and new buyers. Watch out.


“The continuing shortages of housing inventory are driving the price gains. There is no evidence of bubbles popping.” – David Lereah, NAR mouthpiece/economist – August 2005 “The steady improvement in home sales will support price appreciation despite all the wild projections by academics, Wall Street analysts, and others in the media.” – David Lereah, NAR mouthpiece/economist – January 10, 2007 “Buyer traffic is continuing to pick up, while seller traffic is holding steady. In fact, buyer traffic is 40 percent above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly. We’ve transitioned into a seller’s market in much of the country. We expect a seasonal rise of inventory this spring, but it may be …

Bob Woodward: Obama's Sequester 'Madness' - Business Insider

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Bob Woodward: Obama's Sequester 'Madness' - Business Insider

I am sorry, but Bob Woodward sold America out in supporting the Iraq War, an illegal war, as John McCain said, for oil. Woodward wants the US to invade Iran which would be a big mistake.

He has already proven he is not interested in the security of the United States, but is more concerned with the security of Israel. I believe Israel is capable of defending herself. The US should not invade Iran, which could involve the Russians and lead to WW3, THE LAST WAR.

After WW3 the world will be incapable of fighting any more wars.

Anyway, here is proof Woodward lied for Bush/Cheney in rallying US support for an illegal war:




Judge tosses mortgage 'robosigning' case in Vegas - Business Insider's Conflicted History

Judge tosses mortgage 'robosigning' case in Vegas - My News 4 - KRNV, Reno, NV

Robosigning, and deceptive mortgage handling practices are not rackets according to our pathetic justice system. There was an obscure article on Business Insider that should have been on the front page but wasn't, exposing the rackets of the banks. Now we see that the judges are still in on the racket, and robosigning is not a crime in Las Vegas.

I wonder if Henry Blodget, owner of Business Insider, forgot about this article by Larry Doyle, that got a whopping 220 pageviews! That means no one saw the article, because when an article like this makes the front page of Business Insider it should have thousands of views. This was a very important article.

Now, BI did run a few articles on Robosigning. But I didn't see any other articles exposing the fraud of not counting these crimes as RICO crimes. RICO could have put banksters in jail. They are teflon, the true mafia dons now.The banksters are…

Bloomberg’s Awful Comment; What Can We Say For Certain Regarding the GSEs? | Rortybomb

Bloomberg’s Awful Comment; What Can We Say For Certain Regarding the GSEs? | Rortybomb

This article is a basic primer on how the GSE's interacted with the housing bubble. They had little to do with the housing bubble. I suggest everyone read this article.

This is the disturbing lie made by Mayor Bloomberg:


It was not the banks that created the mortgage crisis. It was, plain and simple, Congress, who forced everybody to go and give mortgages to people who were on the cusp….But they were the ones who pushed Fannie and Freddie to make a bunch of loans that were imprudent, if you will. They were the ones that pushed the banks to loan to everybody.
But Rortybomb proves that this deflector for the elite, king of shitheads, is full of same.

Obama Signs Financial Reform -- Including Movie Futures Trading Ban | The Wrap Movies

Obama Signs Financial Reform -- Including Movie Futures Trading Ban | The Wrap Movies

Most people didn't see this. But movie futures cannot be traded. You can't bet on whether a movie will do good or bad at the box office. Can you imagine Cramer types floating rumors about films that were untrue? Hedge funds could have destroyed the industry.

Movies join onions as the only items not permitted to trade on futures markets. Now if we can add foodstuffs and oil America may one day recover.

This article is old, 2010, but got virtually no press at all. There was a little more press when the Senate passed the original bill, signed by Obama later.

JPMorgan to trim 4,000 jobs, many in consumer bank - WSJ.com

JPMorgan to trim 4,000 jobs, many in consumer bank - WSJ.com

JP Morgan layoffs are just more proof that the consumer is dying and that the Federal Reserve is propping up assets in order to kill the consumer. The consumer cannot afford the inflated prices of assets that come from speculation and a weakening of the dollar. Speculation is the central way bankers skim profits from all of us. It must be modified and big investment banks should not be able to take large positions in the futures markets.

Top 10 Ways the Elite Waged and Are Waging Class Warfare Against Us

I hope you take seriously this summary of the top ten ways the banker class took advantage of main street and weakened the middle class. Glenn Beck and the demagogues, some of whom say they are Tea Party people, will tell you that corporations are the victims and borrowers are the ones who took advantage in the credit bubble I am here to tell you that these people are liars and that they support thieves. I can prove that Wall Street has waged class warfare against Main Street, or Mainstreet. Here are the Top Ten Ways that Wall Street bankers, in collusion with the central banks like the Federal Reserve Bank, have waged relentless war against the average guy in America, and will likely continue to do so:

1. They offered ponzi lending loans to mainstreet, in a way that they never did before. This ponzi lending was a premeditated scam established at Basel 2 in Switzerland. Loans reserved for people of means were handed out to everyone, sans sound underwriting.…

Basel Commentary from Awhile Back

Basel is the seedbed of central bank financial schemes and scams. I wrote these awhile back on a blog that I will be discontinuing. The issues about central banking and attacks on main street continue unchanged:

Basel Part One:

Patrick Henry said, "Give me liberty or give me death". The liberty he was talking about was freedom from the Bank of England and control over the money supply. Well, Basel 3 is about to take away our freedoms again. I have argued that the central banks allowed the ponzi housing scam, the dot com scam and orchestrated bank bailouts. But Basel 3 wants to establish taxation without representation. In an article by John Carney at CNBC (one wonders why CNBC who shills for banks even allowed the article), the Basel 3 plan is exposed. This plan is to require banks to purchase Fannie and Freddie mortgage backed securities and get so deep into Fannie and Freddie, that no reform of the GSE's will be possible.

That means that if you took away the g…

Italian Election Results - Business Insider

Italian Election Results - Business Insider

Joe Weisenthal, chief editor at Business Insider has article after article opposing austerity for governments, especially when GDP is dropping. Well, Italy's GDP is going to hell in a handbasket and Joe is over there reporting that low borrowing costs because of policies that kill the GDP are good.

Joe Weisenthal needs to make up his damn mind as to whether austerity in the face of GDP is bad or if growing the national economy is better. It is better, but Joe seems to have changed his mind against that.

Austerity is hurting the UK and Italy, and it could throw the world into a worldwide recession. Wake up people. Italians hate the unelected banker technocrat, Monti, who instituted the austerity which is NOT WORKNG.

There are three things the bankers want, since Andrew Mellon in the Great Depression. They want:


1. Percolation, or supply side economics.

[Of course their supply side never goes to small business who create jobs, only to real …

Business Insider Comment's Being Deleted. Post at Seeking Alpha and Patrick Instead

I actually love mixing it up at Business Insider. Henry Blodget's blog makes me think. And sometimes a lot of truth about the economy, and even bankers is shared there. There needs to be more talk about the evils of the big boys speculating but that is for a different article.

Someone has commandeered the Business Insider commenting system. There system is in the dark ages compared to Seeking Alpha, another Yahoo news source. Seeking Alpha has articles that are more in depth, in many cases. Lots of Business Insider traffic comes from fluff articles about fashion and someone selling a valuable house, etc. Seeking Alpha is nuts and bolts about investing and even about the dangers of investing.

Yet Seeking Alpha is gaining readers as Business Insider, still one of the most popular websites in the world, is losing readers.

I made an Alexa rank comparison today, with Seeking Alpha moving up to 450 most popular in the world, while Business Insider drops to 405. I am wondering if the dro…

Will the USA Declare Independence from the Private Federal Reserve Bank?

The German Finance Minister, Wolfgang Schauble, as many of you know, has said that the Federal Reserve does not know what it is doing. It has been translated that he said Bernanke is clueless, but really, he said that they know they don't know what to do. That means they have a clue that they don't know. What a relief!

But seriously, the implications of what the minister said is disturbing. He is saying that there already is enough liquidity in the system. Of course we know what he really is saying, that the issue is not about liquidity, but rather is about solvency.

The TBTF banks, with their interactive, and radioactive counterparty risk, are insolvent. It is most likely that off the bat, Bank of America and Citibank would be insolvent, with JP Morgan and Wells Fargo potentially insolvent if the other two fail. So then, all these trillions of dollars of debt and bailouts that include giving money to the banks in exchange for toxic assets, is a failure.

We are Japan. We are c…

Bloomberg Reports Biggest Story of All Backwards: Adler Uncovers Massive Deposit Bubble

Bloomberg Reports Biggest Story of All Backwards As Fed Blows Dangerous Deposit Bubble | The Wall Street Examiner

Mr Adler of the Examiner has discovered a massive deposit bubble. When there is a deposit bubble that comes from the Fed there can be only one outcome, bubbles in all manner of markets. This madness could do great damage to main street, especially if it finds its way into housing. All that is necessary is easier terms and a housing bubble could explode.

Then borrowers could be blamed for another housing bubble. Truth is, the Fed is trying to set one up! My other articles show that this is indeed the case here and here. 

#bullcrapben

Evidence Oil Is In A Bubble - Seeking Alpha

Evidence Oil Is In A Bubble - Seeking Alpha

The author says we are experiencing parasitic economics. That means, oil should not be worth over 70 dollars per barrel. It may crash, for awhile. But we will see how strong the ability of the sucking parasites, the investment banks, can keep the price up and America broke. I hope the author is right and that at some point we will see relief at the pump.

You wonder if the Federal Reserve is serious about a recovery on main street or is just lying that they want that recovery. High gas prices won't get us anywhere near a recovery.

Sometimes You CAN 'Fight The Fed' - Business Insider

Sometimes You CAN 'Fight The Fed' - Business Insider


Easy money can ultimately destroy demand, as there is liquidity rampant at the top and a liquidity trap on main street. I would add to this article by saying QE is pushing money to the top, when it should be going to the rest of society. That money going to the top increases speculation. This article acknowledges that asset appreciation cannot help main street recover. Important reading that is worth your time spent.

Poll: Obama Approval Rating Hits High, Republicans Low - Business Insider

Poll: Obama Approval Rating Hits High, Republicans Low - Business Insider

This goes with my theme of the lesser of two evils. While both parties are beholden to bankers, they have different goals as far as foreign policy, and help for the average guy on main street.

Here is what we know:

1. Will Rogers said bankers cause depressions. Both parties were in on that.

2. The Democrats helped the people more in the Great Depression and they seek to help
the people more in this Great Recession that may turn into a Great Depression. We hope not!

3. The Republicans want to push for US military supremacy over the Russians and Chinese. This is
a bad idea that is opposed by many Democrats.

4. Both parties are drone crazy, with many innocent people dying. It is, frankly, disgusting.
Obama is trying to set some guidelines for drones, which would be better than what we have now. IMO drone activity is a war crime in many cases. 

So, while both parties suck, the Republicans suck more.

Herbalife to change customer classifications, says has spoken to Icahn | Reuters

Herbalife to change customer classifications, says has spoken to Icahn | Reuters

There is bad blood between hedge fund moguls Bill Ackman and Carl Icahn. Recently, Acman shorted Herbalife, claiming it was a ponzi scheme. Icahn says it isn't and it has always avoided that label with the law. So, I think Icahn wants to win this so badly that he is willing to take the company private.

It would not surprise me that he wants to at least rattle Achman's cage. Regular investors would do well to stay away, but Icahn has the money available to bid for Herbalife. Some brave souls may want to profit off of a short squeeze.

I am not a financial adviser so don't blame me if you lose your shirts. But it is tempting because just a rumor of a takeover could cause a short squeeze. Ackman would have to have cajones of steel to not buckle at a strong rumor.

Wall Street Banks More Dangerous - Business Insider

Wall Street Banks More Dangerous - Business Insider

Wall Street banks are held to different accounting standards than the real world banks everywhere else. This is such a scam. Using real world, international standards, JP Morgan only has less than 4 percent capital reserve. That is TERRIBLE. 

The toxic loans are still on the bank balance sheets. The author wants austerity, as he writes in other articles. Therefore, I posted these responses to this really good article:

Then certainly he [author] needs to know that we can't cut government stimulus if we hold the banks to the correct standards. It would double tank the economy. He needs to make up his mind whose side he is on. What I was saying is that we need to up the assets of the banks, but it would tank the economy if we did austerity measures against the masses at the same time.

Still, this is a very informative article, and our banks are not out of the woods if the strongest one, JPM, only has asset…

My Discussion with Marcus at Patrick.net

I decided to respond to a discussion with Marcus, with an article showing that stocks and commodities can actually act like the underlying commodities they represent. They become scarce and price is affected regardless of the supply of underlying commodities. I posted this at Patrick.net in response to Marcus:

Again, maybe you should read this and find out you don't know as much as you think you know [Marcus and I were actually arguing past each other as you can see if you read on:
http://seekingalpha.com/article/1189671-cash-hoards-on-the-sidelines-and-the-great-rotation-old-myths-meet-a-new-reality

From the article, James explains that the amount of available cash and the amount of available stock are usually constant, but now are NOT constant. Therefore, a large increase in available cash, with the inelastic availability of the financial product, and that could be stocks, commodities or houses or anything that is sold, will push the price up.


I said:

So, what James is saying is…

Say No to Recourse Loans

Recourse loans add risk to the borrower. If you get a recourse loan, or a heloc that has a recourse element to it, you could be responsible for the difference between what you sell the house for and how much you still own on your loan.

In recourse states, banks could come after you if you default on the loan. In non recourse states, the banks have a choice whether to come after you or get the house back, but not both. Therefore, recourse states give borrowers a much greater risk for assuming a loan. House prices should be less to reflect that risk, but rarely are.

States that do not have recourse loans have non recourse loans. While getting a mortgage there is risky in these times of volatility, they are less risky than getting a mortgage in Nevada or other recourse states. And of course, pulling equity out of your house in any state could result in a recourse situation.

Auto loans are all recourse loans. Your car gets repossessed and then they sell the car. If the lender gets less th…

If Walmart Shoppers Are Broke, Then We're All In Trouble - Business Insider

If Walmart Shoppers Are Broke, Then We're All In Trouble - Business Insider

Here is another stupid Business Insider article that says the problems with Walmart revolve around the 6.2 percent payroll tax, up from 4.2 percent,  that works out to 60 bucks a month for a guy making 40k per year. I responded with my usual frustration to this thoughtless reporting:

 Here is the problem the execs at Walmart are more concerned with oil prices and food than they are about the 6.2 percent payroll tax rise. Why is BI a broken record on this.

This article says: When the payroll-tax break expired at the end of last year, Americans started paying 2 percentage points more in Social Security taxes on their first $113,700 in wages, Dudley reported. That's $60 a month for someone making $40,000 a year.

Ashley, that is PEANUTS compared to gasoline rising EVERY DAY. What is wrong with you people? and:

This is what the Walmart execs said and it wasn't about a payro…

Retirees Are the Casualties of the Currency War: Schiff | Breakout - Yahoo! Finance

Retirees Are the Casualties of the Currency War: Schiff | Breakout - Yahoo! Finance

First of all, Peter Schiff is a libertarian who believes that racism should be a civil right, similar to views held by Rand Paul. This is wacko. The only reason he gets heard is because Schiff is in the 1 percent, IMO.

As far as the currency is concerned, that is small compared to the massive speculation that is occurring with the Fed's easy money. It pushes up the price of things that directly impact folks on fixed income.

Yes, currency wars don't help, but they aren't as bad as the easy money that goes into banks who speculate in futures contracts, driving the price of those underlying commodities up. Scarcity is in the contracts, not in the underlying commodities.

Obama, Housing and the Next Big Heist

Obama, Housing and the Next Big Heist: I previously supported the government's attempt to allow homeowners to get a chance to refi out of toxic loans. However, I strongly object to this part of the plan as uncovered by Mike Whitney:

 And Merkley’s proposal is just one two bills now awaiting congressional action. The other is the Boxer-Menendez bill which “promises lenders they won’t be forced to absorb the loss on refinanced loans that default.” (Bloomberg) Great. So, while the Boxer-Menendez bill will not refi loans that are not backed by Fannie Mae and Freddie Mac, (no “private label” loans) it will move (an estimated) one million high-risk mortgages off bank balance sheets and onto the public’s ledger. This is how the free market capitalism works in the US today; all the profits go to Wall Street and all the red ink goes to Main Street.
Certainly this would work as a stimulus to the economy and I understand that. And moving mortgages off the books of the banks will also ultimat…

Why Lincoln Warned Us Not To Surrender to Corporations. So did Hamilton

Why Lincoln Warned Us Not To Surrender Our Political Power - The Winning Words Project

Lincoln, and the so called libertarian, Alexander Hamilton, wanted regulation of corporations. We have fought for corporations' rights over our own, because the corporation controlled media managed to divide middle class and poor. And they won while the middle class and poor lost.

What the Heck is Going on at the Gas Pump? | Uncommon Wisdom Daily

What the Heck is Going on at the Gas Pump? | Uncommon Wisdom Daily

Here are some highlights, but this article is a must read:

1. World demand estimate has declined, but oil still goes up.

2. America provides 84 percent of usage through our own production yet we are held hostage to more expensive Brent crude prices. Speculation is rampant in London even more than here.

The article gives some great charts and facts. I believe the oil market is cornered. After all, one guy was able to corner the cocoa market. So clearly the investment banks have the power and the law behind them to corner the oil market.

This theft is destroying the working poor and causing Walmart to worry about their customer base. But the Fed doesn't care so long as the bankers make out like bandits. Oil and banking are closely intertwined.

Ok, I added my two bits, now read the article.

Since it is an investment article, the author gives ideas on how to invest in this environment. But if you don't care about t…

FHA; Is May 6, 2013 the Day of Reckoning for the New Housing Bubble?

Changes to private mortgage insurance (PMI), are coming on April 1, 2013, and May 6, 2013. In April a minor adjustment to cost will take place. But the dagger in the hearts of subprime borrowers everywhere takes place on May 6. On that day, all mortgages with less than 10 percent down (all FHA 3 percent mortgages are included), will require PMI for the life of the loan.

This lending website says this is a minor deal. Sorry, but it is a big deal. PMI has been required for 5 years. It will be required for the life of the loan for less than 10 percent down and 11 years for 10 percent to 19 percent.

The question is, will this destroy the infant housing bubble? I have explained that the housing market is too risky now, with few people putting a stable down payment. With the new FHA rules, the risk to borrowers increases greatly. Lots of folks need the car payment for the car not for insurance that retains lenders as the only beneficiary.

Private mortgage insurance, required on m…

Mortgage bill faces tough road in Congress - Yahoo! News

Mortgage bill faces tough road in Congress - Yahoo! News


Truth is, the Republicans don't want homeowners to pay less interest. They would rather that the banksters take your home. These people who have never missed a payment are locked into a trap. And they are kept there by the Republicans because they are greedily in bed with the TBTF bankers.

There is no question that these homeowners are now under water. Allowing them to refi would cost the government money. But it is peanuts to what the bankers got in bailouts. And these folks paid their mortgages on time and are still getting screwed with the housing bubble, caused by the banks.

If the government cannot help here, boycott mortgages. Don't get one because house prices are volatile and could go up or down by thousands of dollars in a year. You are throwing the dice if you get a mortgage, especially a mortgage that stretches your budget. Beware people. 

The Republicans don't want to bail you out even if you are current. …

The Problems At Wal-Mart Run Deeper Than Those Leaked Emails - Business Insider

The Problems At Wal-Mart Run Deeper Than Those Leaked Emails - Business Insider:

The problem with this article is what Walmart really said this about the money troubles of its customers:

The company’s Chief Executive Mike Duke said in a pre-recorded call the discount giant’s “core customers remain cautious about their finances.” “You can expect us to invest even more in lower prices,” he said.
Company executives said while Wal-Mart is cautiously optimistic about the improved employment reports, gas prices that have crept up again remain a concern. On the grocery front, while inflation is moderating, it continues to be an issue for many of the company’s customers.
So, I responded to a question about speculation in the comments section here.
OK, here is proof that the stock market can be subject to speculation, as the actual supply and demand of stocks, not the value of the company, determines price: http://say-no-to-recourse-loans.blogspot.com/2013/02/richard-wyckoff-method-proof-tha…

Wal-Mart turns around U.S. unit, but at a cost - MarketWatch

Wal-Mart turns around U.S. unit, but at a cost - MarketWatch:

While Business Insider was foolishly worried about the tax increase on payrolls, we can see the real reasons for Walmart's concern about the customer base and their finances:

The company’s Chief Executive Mike Duke said in a pre-recorded call the discount giant’s “core customers remain cautious about their finances.” “You can expect us to invest even more in lower prices,” he said.

Company executives said while Wal-Mart is cautiously optimistic about the improved employment reports, gas prices that have crept up again remain a concern. On the grocery front, while inflation is moderating, it continues to be an issue for many of the company’s customers. Of course, futures speculation by the uber wealthy and their investment bank helpers are the main culprits for this rise in grocery and gasoline prices.

America at a Crossroads: Fight Class Warfare from the Top!

America Will You Let the Class Warfare From the Top Class Continue? We have a choice in America. We can do one of two things:
1. We can massively cut spending, hurt mainstreet, slow economic growth, and let the banks create new ponzi schemes.
Or:
2. We can keep spending somewhat level, with a stopping of government growth, with targeted cuts, including military cuts, with controls on medicare costs, tax the top 1 percent, encourage savings in the private sector, and rein in the banksters, at least regarding housing and hedge fund activity.
The problem is, if too much government is cut, then there will have to be a lot of economic growth to make up for the lack of demand created in our society. The only way that this lack of demand can be supported is through another ponzi bubble, most likely in housing, although it could be in stock prices being artificially pushed up. UK consumer confidence is falling because of austerity.
To digress a bit, we need to realize that…

Business Insider is Being Idiotic Today about Walmart's Tank

I have read three articles at Business Insider today stating that the main reason business at Walmart is tanking is because of the 6.2 percent payroll tax hike. For a 40,000 year worker that is 15 bucks a week. If you make less, it is less. So BI is being really stupid here.

Gas prices are higher than ever for this time of year. That speculation, and also food speculation, is causing people to look for the best deals in the stores. Costco is so busy you can't walk around.

Speculation is killing people on the low end of our economy. That is what Business Insider refuses to acknowledge even though Bankrate.com did acknowledge the damage of speculation:

If demand for loans continues to be weak and banks do not want to lend at very low interest rates, then how might inflation result? One possible scenario has to do with the integration of markets and banks. To the extent the excess reserves find their way into proprietary commodity trading, that will help to push up the price of r…

Dear Chairman Bernanke... - Seeking Alpha

Dear Chairman Bernanke... - Seeking Alpha:

This article is a bombshell. Even those who seek to measure the state of the economy have fewer and fewer tools with which to do so, since the Fed and central banks have distorted the markets to such a large degree. I urge everyone to read the article. Lawrence Fuller writes:

"From my perspective, at a time when there is tremendous risk in the global economy and financial markets, we have an unprecedented suppression of the market's ability to measure or reflect that risk, because you have thwarted the pricing mechanism that rules free markets-supply and demand. You are attempting to engineer an economic outcome by manipulating the value of financial assets that should be reflections of that outcome, and not the catalysts to achieving it. The illusion of prosperity that you are helping to create is just that -- an illusion. Should real-world fundamentals continue to deteriorate, the illusion will lose its luster, volatility will soa…

Richard Wyckoff method: Proof that Stocks Are Commodities for Fraud

Richard Wyckoff method

The Wyckoff method proves to me that stocks are like commodities contracts. I have believed this to be so for many years. They are governed in price by supply and demand of the stocks themselves. This is similar to commodities futures contracts, where the contracts are what drives the price, not necessarily underlying supply of the commodity itself.

Great damage is done by hedge funds who manipulate these markets by driving up and down the price of the stocks, regardless of underlying fundamentals. Be they stocks, bonds, and now more than ever, the housing market, the Wyckoff method is used by hedge funds and private equity to shake out the weak hands who buy high. The goal is to buy low and sell high.

At some point then, to take from the principles of this article, the housing market at the top will be sold by the hedge funds and the housing prices will crash. This is a slower process, to be sure, than stock manipulation, which can be done in days or hours with…

The Richard Wyckoff Stock Trading Method - Business Insider

The Richard Wyckoff Stock Trading Method - Stock Manipulation from the 1930's 


PRESENTING: The Secret Trading Strategy From The 1930s That Hedge Funders Don't Want You To Know About
This is somewhat known to people, but I never knew there was a manual for hedge funds on how and when to drive stock prices up and down. The little guy could get killed in the cross hairs. Most interesting quote in the book:

"Those who understand it buy only when prices are low with the idea of selling when they are high; and they operate only in the stocks or commodities which they can move best so they may secure the highest possible rate of turnover of inventories."Source: Wyckoff (1937) This is one of the most important articles ever written on Business Insider. One interesting comment was made at the article, which basically noted that what used to take months, with manual trading in the 1930's now can be manipulated in the matter of days or even hours.

One interesting response …

John Stossel Is Really a Crony Capitalist!

What people need to understand is that John Stossel is not what he represents himself to be. He is a crony capitalist, and wants to protect this predatory system. I know, he says he is not a crony capitalist. But when you blame the poor and the CRA instead of going after the shadow bankers who made the majority of the bad loans and who were coddled by Greenspan and the central banksters at Basel 2, then you are obscuring the issue. And when you don't speak out against Rick Santelli who said that people just made a bad bet and were "losers", when they decided to get a mortgage no money down, then you are crony capitalist. Santelli is the epitome of crony capitalism, because real responsible bankers, not scam artist bankers, actually care what kind of loans their customers get. They actually care to protect their customers from making bad bets and becoming losers.
The Tea Party leaders, Stossel, Santelli and his CNBC buddies could care less about putting a cur…

John Stossel Patsy for the Bankers?

I am going to expose John Stossel for the man he really is. If you care to read on you will see, as I prove, that this man is clearly employed by and gets talking points from the predatory order. Or maybe he is just not very bright. However, I doubt the latter.
I am going to prove that Stossel is a crony capitalist because he blames the poor for credit costs in society and because he wants banks to be able to leverage up again, which will cause mainstreet to be scammed in the future. He says he wants the banks to fail and not be bailed out, but the leveraging up is predatory, as Stossel is predatory. Stossel is a bank patsy who wants credit scamming through high usury and easy money loans to continue.
John Stossel of Fox News is blaming the Democrats for higher fees on credit cards. Actually the Democrats did some things to lower the fees. They didn't do enough to help credit card holders, however. But, Stossel believes that the banks must gouge you one way or another…

Does Henry Blodget's Business Insider Report Fairly About Bank Crime and the Vatican?

There is an ongoing dispute with Henry Blodget, owner of Business Insider regarding the criminal activity of selling bogus mortgage backed securities by the big banks to investors. The selling of those resulted in lots of funding for easy money liar loans and the like. With new emails coming out about JPM traders possibly knowing about how bad the loans were in the MBS, Blodget has reluctantly criticized the bankers.

Well now, Business Insider has reported on the Vatican money laundering scandal and has shown JP Morgan in a favorable light in these reports:

JPMorgan Shuts Down The Account Of The Vatican Bank Due To Lack Of TransparencyandThe U.S. Government Just Put The Vatican On A List Of Places Where It's Easy To Launder MoneyThese articles are very easy on JPM, as most Business Insider articles are. We know that the Vatican is a sovereign nation, prone to corruption. [That is why, for religious folk, and even for non religous folk, separation of church and state is so important…

My Tower of Basel "Oh Crap" Moment

The following article was written in 2009. I predicted the new housing bubble many years ago! 

I know you have heard of the Tower of Babel but perhaps none of you have heard about the Tower of Basel. The Tower is a building occupied by the Bank of Settlements in Basel, Switzerland. I am going to try to make this simple regarding the functioning of the Bank of Settlements. Essentially the Bank is the home bank of all central banks in the Western World. That of course includes the United States Federal Reserve Bank, one of a number of private banks who control the money supplies of various nations.
The Bank of Settlements hosts banking conferences. Out of the Basel 2, 1998 conference, came the ponzi housing scheme. Off balance sheet banking was permitted, and this allowed risky loan making with the blessing of the Bank of Settlements. Liar loans, option arms and the rest of the culprits of the Real Estate Bubble were essentially permitted at Basel 2. We know that the Feder…