Political Wednesday 10/26/11 Ron Paul Continued

Submitted by: Francis Soyer

In the early hours of the morning 2:00 a.m. to be specific and grinding out my due diligence on political affairs I have come across something profound. I have found resolution to apathy. The apathy that has hovered over me since I have been old enough to vote is beginning to to lesson its cold grip.

Every four years its seems that I like almost all other Americans will have to make the choice of the lesser of two evils. For this coming election in 2012 I feel that GOD himself has provided us with a messenger, a man of integrity, a man of TRUTH, a man not afraid to speak that truth, a scholar and a prince of peace and of how to achieve well being and prosperity for all.

As a student of the constitution and of the founding fathers I can say that he does remind me of Thomas Jefferson and Benjamin Franklin.

As a business man I have traveled the world, managed multi billion dollar hedge funds and have seen just about anything and everything you could imagine. I have learned how businesses work, what makes them successful what makes them fail and how to identify talent and intelligence. I have learned how to spot liars, clowns and whores. After my due dil on Ron Paul I can honestly say that there is reason for hope. In my industry what he has to say has profound meaning. That meaning is of a positive nature that I do not think you could imagine. 

He has my vote and I will do whatever I can to help him get there. I hope you get to know him. I am busy trading my way to feed myself and family but I will provide as much as I can on my blog to inform you as things progress. If he were a stock I would buy until my gums, fingers and toes bled.


Best,

Francis

Political Wednesday Ron Paul Update 10/25/11

Submitted by: Francis Soyer

As a follow up to the last post as we anger to put some perspective on the 2012 elections see the below. My take away from researching Ron Paul is that given how our media intentionally ignores him gives me the signal that he will be the one to be elected president. Why? because he stands for the very document that made this country break away from England and become the greatest power on earth. What is that document? It is the U.S. Constitution. Read it you will not be disappointed and it is this citizen journalists opinion that you will realize just how brilliant our founding fathers were.

I have contributed to his campaign to the point where my gums bled, and the funny thing is that as far as campaign contributions he is absolutely blowing away all other republican candidates by multiples and these contributions are not coming from special interests. They are coming by way of $10 and $15 donations FROM PEOPLE LIKE YOU AND ME! No wonder why Ronald Reagan liked him....

Political Wednesday 10/26/11

Submitted by: Francis Soyer

So in answer to some questions that I get frequently...what the heck is going on in the markets, why are they so crazy etc. etc. I was lucky enough to find a video summary that quickly and decisively describes our current situation. Video Below.

Gold and Silver Update 10/24/11

Submitted by: Francis Soyer

In terms of currency revaluation on the heels of global currency collapse i.e. failure of the Euro and then the inevitable failure or default on the U.S.D. the global reserve currency, the article below ends up on the higher end of the range when central bank assets get a global reset and then tied to the hard asset value of Gold and Silver. In short the valuation in this article comes in at around $10,000 per ounce on Gold roughly a 5 multiple from here which would give us $150 per ounce on silver. Pretty scary stuff but the work from these fund managers appears to be reasonable. As for the timing of such events, this analyst expects this scenario to play out roughly by the end of 2012. The article is below with the link.

Best,

Francis

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/10/19_KWN_Special__Dollar_Devaluation_Coming,_Gold_to_be_Revalued.html
With continued worries surrounding the metals markets, today King World News spoke with the firm that is calling for $10,000 gold.  Paul Brodsky, who co-founded QB Asset Management Company, explains, “We spent twenty odd years as bond traders before deciding there was no value anywhere in the interest rate arena at all.  As that background would imply, we like to know what fair value is for things.  So we went back and knowing that gold was fundamentally cheap we wanted to find where purchasing power parity would be based on all past monetary inflation.”

Paul Brodsky continues:

 

“We figured you should take the monetary base and divide it by official gold holdings.  That would give you the price in terms of monetary inflation that it would be worth today.  Coincidentally, after we came up with that theory we went back and looked at what they used to use, the formula for arriving at the Bretton Woods dollar exchange value with gold at $35 and it was the same formula.  So if you were to divide base money by official gold holdings today, after QE2, you would come up with a price just north of $10,000 an ounce.”

When asked how he sees this playing out, Brodsky responded, “At some point the Fed will have to formally devalue the dollar vs gold and I think all central banks, economies and treasury ministries will have to fall in line with that.  The way this would be accomplished might look very similar to the way they have been targeting interest rates through the Fed funds market....

.

“We may go into a weekend and if confidence continues to erode to the point where global trade really falls off a cliff and commercial exchange drops dramatically because fewer people have confidence in the currencies they are receiving, then I could see the Fed or the Treasury opens the drawer and they take out plan B.

This would mean they say, ‘Ok, on Monday the Fed would be tendering all gold at $10,000 an ounce,’ or some number that would cover that debt.  So if the debt is $53 trillion and the monetary base is not quite $3 trillion, then they would come up with a number where bank assets or loans would be covered and that would be the magnitude of the devaluation. 

They tender for gold, using this example, at $10,000 an ounce.  The proclamation itself would not be inflationary, but the act of purchasing private sector gold at $10,000 an ounce would demand they print a bunch of money and that would be inflationary.  That is how the system would be de-levered.

That would have good ramifications, even though it’s highly inflationary and it devalues the dollar dramatically, it would have politically expedient benefits to debt holders.  So we see that as being the end game.”

This is why it is absolutely critical to own physical gold and silver.  When the monetary system is rebooted and gold is revalued, you don’t want to be left holding fiat money.

BAC update 10/24/11

Submitted by: Francis Soyer

BAC is in trouble. At this point there simply is no doubt. In terms of their balance sheet a couple of Financial Journalists from Main Stream Media have picked up on it. The article with links is below.

If you have any doubt that Bank of America is going down, this development should settle it …. Both [professor of economics and law, and former head S&L prosecutor] Bill Black (who I interviewed just now) and I see this as a desperate move by Bank of America’s management, a de facto admission that they know the bank is in serious trouble. The short form via Bloomberg:

Bank of America Corp. (BAC), hit by a credit downgrade last month, hasmoved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits, according to people with direct knowledge of the situation…
Bank of America’s holding company — the parent of both the retail bank and the Merrill Lynch securities unit — held almost $75 trillion of derivatives at the end of June, according to data compiled by the OCC. About $53 trillion, or 71 percent, were within Bank of America NA, according to the data, which represent the notional values of the trades.
That compares with JPMorgan’s deposit-taking entity, JPMorgan Chase Bank NA, which contained 99 percent of the New York-based firm’s $79 trillion of notional derivatives, the OCC data show.

Now you would expect this move to be driven by adverse selection, that it, that BofA would move its WORST derivatives, that is, the ones that were riskiest or otherwise had high collateral posting requirements, to the sub. Bill Black confirmed that even though the details were sketchy, this is precisely what took place.
And remember, as we have indicated, there are some “derivatives” that should be eliminated, period. We’ve written repeatedly about credit default swaps, which have virtually no legitimate economic uses (no one was complaining about the illiquidity of corporate bonds prior to the introduction of CDS; this was not a perceived need among investors). They are an inherently defective product, since there is no way to margin adequately for “jump to default” risk and have the product be viable economically. CDS are systematically underpriced insurance, with insurers guaranteed to go bust periodically, as AIG and the monolines demonstrated. [Background.]
The reason that commentators like Chris Whalen were relatively sanguine about Bank of America likely becoming insolvent as a result of eventual mortgage and other litigation losses is that it would be a holding company bankruptcy. The operating units, most importantly, the banks, would not be affected and could be spun out to a new entity or sold. Shareholders would be wiped out and holding company creditors (most important, bondholders) would take a hit by having their debt haircut and partly converted to equity.
This changes the picture completely. This move reflects either criminal incompetence or abject corruption by the Fed. Even though I’ve expressed my doubts as to whether Dodd Frank resolutions will work, dumping derivatives into depositaries pretty much guarantees a Dodd Frank resolution will fail. Remember the effect of the 2005 bankruptcy law revisions: derivatives counterparties are first in line, they get to grab assets first and leave everyone else to scramble for crumbs. [Background.] So this move amounts to a direct transfer from derivatives counterparties of Merrill to the taxpayer, via the FDIC, which would have to make depositors whole after derivatives counterparties grabbed collateral. It’s well nigh impossible to have an orderly wind down in this scenario. You have a derivatives counterparty land grab and an abrupt insolvency. Lehman failed over a weekend after JP Morgan grabbed collateral.
But it’s even worse than that. During the savings & loan crisis, the FDIC did not have enough in deposit insurance receipts to pay for the Resolution Trust Corporation wind-down vehicle. It had to get more funding from Congress. This move paves the way for another TARP-style shakedown of taxpayers, this time to save depositors. No Congressman would dare vote against that. This move is Machiavellian, and just plain evil.
The FDIC is understandably ripshit. Again from Bloomberg:

 

The Federal Reserve and Federal Deposit Insurance Corp. disagree over the transfers, which are being requested by counterparties, said the people, who asked to remain anonymous because they weren’t authorized to speak publicly. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting, said the people. The bank doesn’t believe regulatory approval is needed, said people with knowledge of its position.

Well OF COURSE BofA is gonna try to take the position this is kosher, but the FDIC can and must reject this brazen move. But this is a bit of a fait accompli,and I have NO doubt BofA and the craven, corrupt Fed will argue that moving the derivatives back will upset the markets. Well too bad, maybe it’s time banks learn they can no longer run roughshod over regulators. And if BofA is at that much risk that it can’t survive undoing this brazen move, that would seem to be prima facie evidence that a Dodd Frank resolution is in order.
Bill Black said that the Bloomberg editors toned down his remarks considerably. He said, “Any competent regulator would respond: “No, Hell NO!” It’s time that the public also say no, and loudly, to this new scheme to loot taxpayers and save a criminally destructive bank.

http://www.fourwinds10.net/siterun_data/government/banking_and_taxation_irs_and_insurance/social_security/news.php?q=1319245749

Occupy Wall Street Update 10/20/11

Submitted by: Francis Soyer

Dillon Ratigan... I remember watching him on Bloomberg TV back in 2000 when he would shout and yell about how rediculous this internet bubble was and how it would blow us all up. Hats off to Dillon Ratigan for having some guts and also for this video below. This video explains in a language that all can easily understand where we are and how we got here.

http://www.msnbc.msn.com/id/21134540/vp/44935992#44935992

Gold and Silver update 10/20/11

Submitted by: Francis Soyer

So we are almost done with Options Expiration. Tomorrow most call options on stocks and commodities will expire worthless as usual as the super sized players whip things around as best as possible in the quest to take as much money, from as many people as possible in the shortest period of time.

Gold and Silver of course are no exception except in that with Europe, the European Union and the Euro currency running out of time in spite of rumor after rumor of a proposed solution that will never happen. It will not happen because there is NO SOLUTION. They know it and are dragging this out as long as possible before the cat gets out of the bag so to speak...

So why are ESF funds (Exchange Stabilization Funds) hammering silver and gold? To send the signal to the markets that "all is well!, nothing to see here! please move along..." They know dam well that a shit storm is probably only a few weeks away.

That said take a look at the YTD VWAP (volume weighted average price) charts for PHYS and PSLV. Notice that in PSLV and PHYS we have basically had only 3 opportunities! to engage on the long side for both! Every time we dip at or below its just a matter of minimal time before we blast off it. Why? because it is during those times the Fed banks and their cronies cover shorts from their "all is well" programs and bag as much on the long side as possible. Think about it.

Market Update as of close 10/20/11

Rogue Government Traders

Submitted by Mike Krieger


Federal employees whose compensation averages more than $126,000 and the nation’s greatest concentration of lawyers helped Washington edge out San Jose as the wealthiest U.S. metropolitan area, government data show.  The U.S. capital has swapped top spots with Silicon Valley, according to recent Census Bureau figures, with the typical household in the Washington metro area earning $84,523 last year. The national median income for 2010 was $50,046...The flow of federal dollars in and around the nation’s capital helped the region weather the economic slump better than most areas and is contributing to its recovery. The unemployment rate in the Washington metro area in August was 6.1 percent, compared with 10 percent in San Jose, according to Labor Department figures. Nationally, joblessness was 9.1 percent in September for a third straight month.  “The region did experience a shorter, shallower recession than San Jose,” said Sara Kline, a Washington analyst at Moody’s Analytics Inc. in West Chester, Pennsylvania. “The federal government stepped in to take efforts to dampen the recession. It was focused to some extent in the D.C. area as well, given the presence of federal workers there and contractors. That insulated it from more of a downturn.”
- Bloomberg article from yesterday http://www.bloomberg.com/news/2011-10-19/beltway-earnings-make-u-s-capit...
As a result of an amendment by Sen. Bernie Sanders to the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Government Accountability Office completed its second audit of the Federal Reserve. This report focuses on the enormous conflicts of interest that existed at the Federal Reserve during the financial crisis. 
Here is what the GAO found:
-    The affiliations of the Federal Reserve's board of directors with financial firms continue to pose "reputational risks" to the Federal Reserve System.
-    The policy of the Federal Reserve to give members of the banking industry the power to both elect and serve on the Federal Reserve's board of directors creates "an appearance of a conflict of interest."
-    The GAO identified 18 former and current members of the Federal Reserve's board affiliated with banks and companies that received emergency loans from the Federal Reserve during the financial crisis including General Electric, JP Morgan Chase, and Lehman Brothers.
-    There are no restrictions on directors of the Federal Reserve Board from communicating concerns about their respective banks to the staff of the Federal Reserve.
-    Many of the Federal Reserve's board of directors own stock or work directly for banks that are supervised and regulated by the Federal Reserve. These board members oversee the Federal Reserve's operations including salary and personnel decisions.
-    Under current regulations, Fed directors who are employed by the banking industry or own stock in financial institutions can participate in decisions involving how much interest to charge to financial institutions receiving Fed loans; and the approval or disapproval of Federal Reserve credit to healthy banks and banks in "hazardous" condition.
-    The Federal Reserve does not publicly disclose its conflict of interest regulations or when it grants waivers to its conflict of interest regulations.
-    21 members of the Federal Reserve's board of directors were involved in making personnel decisions in the division of supervision and regulation at the Fed.
-  The Sanders Report on the GAO Audit on Major Conflicts of Interest at the Federal Reserve. 
You MUST READ THIS. 
Rogue Government Traders
Everything that is happening around the world right now reminds me of the  movie “Rogue Trader.”  In case you haven’t seen it, it is the 1999 film where Ewan McGregor plays the role of Nick Leeson, the Barings Bank trader whose trades gone bad brought down Barings Bank, the oldest merchant bank in London at the time.  The reason why this story is so compelling and why I recommend everyone go watch it is because it demonstrates what can happen when a small loss or mistake is ignored and then covered up in a futile attempt to get back to where you were.  In this case, Nick Leeson started losing money trading futures in Singapore and rather than cutting his losses he kept trading more and bigger.  Pretty quickly, the losses became so enormous he knew he would be forced to close them out if someone noticed and he might even be fired.  So what did he do?  He decided to transfer the losses to a hidden account.  The 88888 account.  He figured he would hide the losses there and then close the hidden account when he got back to even.  He never got back to even and Barings went bankrupt. 
Any of this sound familiar?  Yes of course it does.  Unfortunately for all of us, the story of Barings bank and Nick Leeson is merely happening on a global scale.  However, rather than one trader making bad bets what we are dealing with is a gigantic credit bubble ponzi scheme created by TBTF banks, or as Bill Black more appropriately refers to them, Systemically Dangerous Institutions (SDIs) that now needs to be covered up.  This ponzi first started unraveling back in 2008 and rather than deal with it the best we could, global “leaders” decided to bail them out with taxpayer money and guarantees.  What did we get for this act of kindness?  A dead economy, monstrous unemployment, 15% of Americans on food stamps and a frightening reality that shows Americans are having a much harder time than the Chinese putting food on the table.  See this article http://www.shtfplan.com/headline-news/startling-survey-americans-are-str... Meanwhile, what did the banksters get?  They consolidated even more power over their Washington D.C. puppets because now establishment politicians are “in” the doubled down Nick Leeson bet with Wall Street and of course they got record bonuses and no one was prosecuted.  
So here is the world as I see it at the moment.  You have a gigantic credit/derivatives ponzi scheme created by SDIs that cannot be settled or unwound without a lot of pain.  The banks know this but of course they don’t tell the serfs.  They did tell the governments this back in 2008, but with the caveat that if the politicians saved them they would save the economy and be considered heroes.  Given the financial ignorance, stupidity and massive egos floating around that cesspool called Washington D.C. they fell for it line hook line and sinker.  Well, nothing improved except for bank bonuses and now people are unsurprisingly out in the streets all over America.  Now what?
Well since the politicians are now “in the bet” with the banksters they are just doubling down and doubling down on past mistakes and making things worse and worse.  Except this time they won’t just blow up an old bank.  They will blow up the entire planet.  I mean did you see what Bank of America just did?  They purposely moved their derivatives in with the FDIC insured deposits subsidiary and away from the Merrill unit.  The FDIC is apparently not into this but the FED thinks it is a good idea.  They are purposely putting a nuclear bomb in bed with customer deposits so they have a gun to the head of everyone again.  Aren’t you glad we bailed them out?  Read this http://www.bloomberg.com/news/2011-10-18/bofa-said-to-split-regulators-o... and this http://www.nakedcapitalism.com/2011/10/bank-of-america-deathwatch-moves-....
No Solution Announced in Europe.  Why?
One of the most hilarious and disturbing things that has dominated market related news lately is the lack of any “solution” in Europe but rather commentary/rumors every other day about some master plan that is to be unveiled any moment.  Of course nothing is ever unveiled and then they say oh it will be “next week.”  It’s always next week.  Just like every bankrupt country on the planet is supposedly going to have miraculous budget surpluses in 2020.  They are lying folks.  No solution has been announced in Europe because there is no solution.  I think it is actually pretty simple.  The extent of the debt problem is so enormous when you include Italy (which you need to do as yields reach back up to 6% on the 10 year bond and people are getting violent in the streets) that any “solution” would have to be so huge and involve a lot of new money/credit creation in the Eurozone that it would pass the buck entirely to Germany and lead to extremely high inflation in the Eurozone.  This is why Germany rightly has not agreed to the bazooka approach that France and Tiny Timmy Geithner is trying to shove down their throats.  While things may not be great in Germany, I don’t think they want a situation where their people have a harder time eating than the Chinese.  That is what Americans have gotten as a reward for pulling out the bazooka in 2008 and bailing out the criminals at the government-ward banks. 
Here is the other problem with the whole thing.  Germany seems to be pushing for greater private sector write downs on Greek debt.  The number floating around is 50%.  While this is the responsible thing to do it isn’t really workable as a “solution.”  Why?  Because why would ANY other nation ever perform austerity and agree to pay their debt burden after that?  They just saw that all you have to do is cheat and riot and the EU will give in because they will to do anything to save their precious little Euro project.  So if Greece gets away with not honoring its debts no nation will ever honor them and then you will either see the biggest chain reaction of debt default in human history or the biggest money printing episode since Zimbabwe.  This is completely binary and there are no good outcomes.  That is why nothing has been announced.  I still think the chance of Germany pulling itself out has a much higher probability than people realize.  To see some of the friction between Germany and France read this quick piece from yesterday http://www.cnn.com/2011/10/18/business/france-euro-summit/.
Life in a Looted United States of America
Let this message serve as a warning to Germany.  If you follow the path to mutually assured destruction with the rest of Europe you will end up with what we have here in America.  In a post looted America, the landscape is dominated by criminal oligarchs running around spouting lies via the media to the ignorant sheep.  You see states like Louisiana apparently banning cash for certain transactions.  You see Washington D.C., home of nothing productive or creative but rather a nest of immoral parasites take over as the highest household income from San Jose, home of companies like Apple and Cisco.  You have the only good news from our Nobel Peace Prize winner President this year being the murder of two people.  Osama Bin Laden (which I believe was a totally fake story) and now today Gadhafi.  Wow, America really is number 1.
This is how a nation descends from one of productivity and innovation to ruthless, corrupt feudalism in a very short period of time.  My message for Americans follows up from my email of two weeks ago.  The reason the liberal mainstream corporate media demonized the Tea Party is because it threatens the status quo.  The reason the conservative corporate mainstream media demonizes Occupy Wall Street is because it threatens the status quo.  These are textbook divide and conquer strategies being used on the American people.  Do not fall for it.  Yesterday I read a really interesting gallup poll that stated: “Not surprisingly, Americans who consider themselves supporters of the Occupy Wall Street movement (26% of all Americans) are more likely to blame Wall Street than the federal government for the nation's economic problems. Supporters of the Tea Party movement (22% of Americans) are overwhelmingly likely to blame the government.”  What is most compelling to me is that 26%+22% = 48% so basically almost a majority.  All we need to do is teach people that Washington D.C. and Wall Street are now the same corrupt entity.  They are one gigantic rogue trader sucking the lifeblood out of America.  If we can unite these forces, which I can say with certainty agree on the important issues, we can put an end to the status quo and free ourselves of this bondage. 
Peace and wisdom,
Mike

Update on BAC 10/19/11

Submitted by: Francis Soyer

http://afoolandhismoney.blogspot.com/2011/01/surprise-surprise-bac-posts-abysmal_3013.html

It has been a while since I wrote about BAC. To be exact the last time I wrote about this POS of a stock was on Jan 21, 2011. Everything you need to know about BAC is in the original article at the link posted above. In short BAC is going to zero. Or if it does not achieve a $0.00 price target it will be nationalized at something far below it's current price of 6.40. When I wrote the article BAC was $14.25 a share. Now it is a single digit midget.

The question I had asked was, if the senior management who earned millions on an annual basis was not buying why should we? The answer is $14.25 in Jan 2011 to the current price of $6.40 and going lower.

Bank Of America's $8.5 Billion Settlement Deal Falls Apart

Submitted by Tyler Durden on 10/19/2011 21:23 -0400

While Morgan Stanley only recently became a second derivative for everything European-related (thank you financial short selling ban in Europe, and also thank you Mr. Gorman for updating investors on your firm's $39 billion gross derivative exposure to French banks (not France the country). What's that? You didn't provide one? Oh, our bad, just as it is "anonymous bloggers" bad that your CDS blew out this quarter and generated over $3 billion in "income" for your firm - you are truly welcome), Bank of America has, for quite a while, been a proxy for all that is wrong with America's mortgage industry, courtesy of that most value-destroying purchase of the insolvent criminal entity that was Countrywide Financials. For a while the market was content that the proxy would not be in need of a shallow grave, unlike the US housing market (go ahead, ask where PrimeX closed today), after the bank managed to bribe enough "plaintiffs" and proceed with a quick and painless $8.5 billion settlement on all of its mortgage putback claims. A settlement that, however, had a very weak link: "Article 77", a critical provision enabling the deal in its current form. And as we first reported and explained back on August 26, said weakest link was attacked by David Grais of Walnut Place, who "filed a request to transfer the lawsuit from State Court to Federal Court where everything basically begins a new." Well, today Grais won, and Bank of America lost after US District Judge William Pauley ruled that "Bank of America Corp.’s proposed $8.5 billion settlement with Countrywide Financial Corp. mortgage-bond investors must be considered in federal court instead of the New York state court where it was first filed." Not content with making a factual statement, the Judge proceeded to skewer the bank which, on top of evertyhing, recently decided to stuff its depositors with a bill as large as $53 trillion should things turn sour, added "The settlement agreement at issue here implicates core federal interests in the integrity of nationally chartered banks and the vitality of the national securities markets."  Integrity? From a bank which secretly, though with the Fed's blessing, has tried to put its client interests over those of depositors of over $1 trillion, and over the objections of the FDIC? Don't make us laugh.
The good news is that yet another rating downgrade is imminent once the rating agencies realize that as a result of the Article 77 clause elimination, BofA is now on the hook for tens, if not hundreds of billions in putback liabilities and civil liability exposure, and potentially the forced bankruptcy of its Countrywide unit. In other words: the financial meltup over the past 2 weeks was fun while it lasted.
While it is of secondary relevance, and interested readers can read more in the attached ruling, the specific reason for why Pauley demonstrated balls of brass is explained by Alison Frankel:

The settlement agreement at issue here implicates core federal interests in the integrity of nationally chartered banks and the vitality of the national securities markets," Pauley wrote. "A controversy touching on these paramount federal interests should proceed in federal court."…That sentiment infuses the judge's analysis of where BofA's proposed deal should be evaluated…before Pauley in federal court, where there's no analogous procedure for binding thousands of investors in 530 trustees to a settlement only 22 of them had a hand in negotiating. Pauley's decision to keep the case in federal court throws the settlement off the carefully-designed track the bank, the trustee, and the investor group that supports the deal hoped to keep it on.

Pauley seemed to find the settlement supporters' Article 77 gambit to have been too clever by half. He noted that his research uncovered only 28 Article 77 decisions in the last 40 years, many of which involved uncontested proceedings and garden-variety trust administration issues. He said, in fact, that he could find no authority to support the idea that a single Article 77 proceeding can be used to evaluate a decision affecting 530 trusts…Pauley concluded, however, that BNY Mellon was once again looking at form rather than substance, calling its argument "crabbed." Walnut Place, he wrote, was adverse to BNY Mellon, the Article 77 plaintiff, so it is a defendant for the purposes of removal…

If the Second Circuit upholds the ruling, it's very bad news for BofA. Given the harsh treatment Pauley has dished out to settlement supporters in two hearings and in Wednesday's ruling, it's clear the lawyers who crafted the $8.5 billion dollar deal have a long way to go before they get Pauley to sign off.”

While the clear loser here is Bank of America, and those who are long the stock and short the CDS, the winners are once again all those monolines whose full putback claims are about to see multiple expansion. Especially those with massive short interest, and whose core investors are in dire need of any form of short squeeze to bring their overall P&L higher.
Below is the full Pauley ruling blasting everything that is corrupt at Bank of America, and those collusive "plaintiff" who sought nothing less than to find a solution that barely dents Bank of America. You know who you are.

Gold and Silver Update evening 10/19/11

This pretty much sums up today's activity...

Bob Chapman : "as usual your government is attacking the market , it attacked commodities very hard as well , the reason is this Situation in Europe is Terminal , they said they are reorganize the banks which means they are going to save them all , the bankers in wall street and in the City of London they own your life they own your existence and it is going to get worse not better the manipulation will continue until they can't do it anymore , the inflation will continue until they can't do it anymore and you are going to have the media full of charlatans until they can't do it anymore and if Ron Paul is not elected you better get ready for a revolution ...."

OWS Update 10/19/11

Submitted by: Francis Soyer

And this it what things have come to... While Occupy Wall Street has received very little attention in the media or reported and marginalized and lied about, make no mistake that it is real, it is almost nation wide at this point, people are pissed off and voicing their anger at how terribly criminal our government has become. Specifically they are angry that the Fed Reserve Bank a private bank and their conglomerates have hijacted our constitution and put our well being in harms way. Enter the hired thugs, in this case the NYPD hired by this bank and others for overtime pay to push down the protest. They have been clubbing people, beating on them, macing them and you get the idea to quell this protest.

Enter a Marine SGT. a native of NYC who after coming back after his second tour in Afhganistan and Iraq witnesses protesters getting beaten on. He voices his anger. After all he has just spent two tours in hell,  98 degree heat toting 75 pounds of gear and facing down AK 47 toting people who would like nothing more than to kill him. He returns home after this duty of "defending freedom," defending the constitution to see this crap on the streets of Manhattan. What do you think his reaction will be?

Find out here.

http://www.infiniteunknown.net/2011/10/18/1-us-marine-makes-30-nypd-cops-back-down/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+InfiniteUnknown+%28Infinite+Unknown%29

I once heard a description of what the word Patriot means. I can not recall the source but it said "The definition of a Patriot is one who is willing to defend the constitution from enemy's be they foreign or domestic." In this case I think it is clear who the enemies are...

Gold and Silver Update 10/19/11

 

 

Submitted by: Francis Soyer

This week Gold and Silver are in the throws of the same B.S. different day. Every month the Fed, Treasury departments, JPM, HSBC do basically the same thing. They hammer gold and silver as best as possible to signal to the market that all is well. This is especially true during options expiration which is this Friday and all those who are seeking the cash in on a bull move (novice investors) using options for leverage get their asses handed to them as their call options expire worthless. Those call options almost always written by the likes of the banking power houses JPM and HSBC not to mention the Fed and Treasury departments around the world especially this week with more spin, more B.S. of how:

• MERKEL SPEAKS AT TRICHET FAREWELL IN FRANKFURT
• MERKEL SAYS EURO IS STABLE, HAS PROVED ITSELF IN TURBULENT TIME
• MERKEL SAYS IF THE EURO FAILS, EUROPE FAILS
• MERKEL SAYS 'WE SHALL NOT ALLOW' EURO TO FAIL
• MERKEL SAYS NEXT EU SUMMIT IS `NOT THE END POINT' FOR CRISIS

In reference to the above comments out of our Fearless leaders in Europe. Simply put there is not a snowballs chance in hell that the Euro will survive. They will continue to Spin, Kick the Can Down the Road and outright Lie rite to our faces up until the moment Greece defaults and the rest of the Union follows suit. The nail in the coffin will be when Germany announces they are abandoning membership to the Union all together. Bond Holders, Equity Holders and anyone and everything denominated in Euros will make a mass exodus and that exodus will be into the U.S.D. still the world reserve currency. This will cause a spike in relative val in the U.S.D. stocks will crumble initially. There will be a quiet before the next storm (about two or three weeks) when all eyes will focus on the USD and how the U.S. is also about to default on its debt i.e. debt ceiling increases needed in December 2011.

So what do you think will happen to gold and silver when that happens? They are going to go through the freaking roof is what is going to happen. So in the meantime let them play their games. Do not try to day trade the markets are way too rigged with HFT algos (High Frequency Trading Algorithms) and the likes of JPM and HSBC trying desperately to do the bidding of the treasury and Fed Banks around the world to try to send that signal that all is well.

Looking at the raw mechanics of the last few trading sessions enclosed the reports from someone I respect and the link.

http://harveyorgan.blogspot.com/2011/10/bart-ready-to-speak-his-mind-on-cftc.html
The total gold comex OI fell by a rather large 7652 contracts from 445,391 to 437,739 contracts as the bankers succeeded again in knocking out some weak gold longs.  However the front delivery month of October saw its OI RISE by 3 contracts despite zero deliveries yesterday.  We thus gained more gold standing and lost nothing to cash settlements.  The big December gold month saw its OI fall by almost 10,000 contracts from 275,361 to 264,187.  This no doubt pleased the JPMorgan higher echelon.  The estimated volume today was on a shallow end at 112,082.  The confirmed volume yesterday was huge at 206,356.
It seems that in order to manipulate the price lower they need massive non backed paper to do their dirty work.

The total silver comex OI surprised everyone by rising by 753 contracts to 103,357 from 102,604.
The JPMorgan boys are not enthralled with this development as they thought that they were gaining some headway in removing weaker longs.  It seems that the higher margin requirements have knocked out just about all of our leverage players leaving just the physical players who do not care about margin requirements and are ready to take delivery.  The front options expiry month of October surprisingly rose from 127 to 146 for a gain of  19 contracts.  We had 4 deliveries yesterday so we gained 23 contracts of silver standing or 115,000 oz and lost nothing to cash settlements.  The big December contract failed to go along with its older cousin gold by remaining relatively constant at 60,041.  The estimated volume today was still very low at 49,794.  The confirmed volume yesterday, the day of the big raid came in at 60,179.

Gold and Silver Update 10/07/11

Submitted by: Francis Soyer

In spite of the Fed and Treasuries ESF raid on gold and silver gold and silver have continued to be resilient and begin their upward climb again. Notice the charts below at how few and far between our opportunities to buy at below volume weighted price have been.

On another note it appears that the unrest we have seen overseas has begun to occur here in the U.S. The difference in the nature of protest agenda however is that the protests here are more direct and pointed directly at the Federal Reserve Monetary System. I have been getting reports from San Fran, Seattle, Boston and of course New York. It appears that with such high unenployment people are having more time on their hands to understand how the monetary world really works.. and they are pissed off.

If the video is blocked you can try here:

http://ampedstatus.org/report-from-the-frontlines-police-attack-protesters-more-occupy-wall-street-arrests-videos/

Gold and Silver Update 10/05/11

Submitted by: Francis Soyer

 An inside source has revealed that the German Government has ordered the Deutsche Bank to begin printing Deutschmark. In spite of what we have been being fed by brain dead main stream media on a daily basis of how the Euro will be saved, the Euro zone in question the German's have no intention of staying in the Euro. The Fed and Treasury knowing this have pulled out the stops and have been hitting Gold and Silver as hard as they can.

European bond holders will get their heads handed to them on a silver platter. Anyone in Euros needs to buy Gold and Silver.