Disgraceful Conduct by Leading Bankers

Tuesday, I remarked: “I called for this action on Sunday. I figured HB&B would be dumping commodities in their quest for survival. This is just the beginning. Save your ammo because in a couple months when we hit back with purchases of precious metals stocks and bullion, we will be having our own moonshot.”

Here’s what I was referring to in the Sunday Week In Review:

“Forex Review:

I was concluding in this space in the past couple weeks that the sell-off in the $USD and gains in precious metals was coming to an end, but this week there was another sell-off (-1.57%) to 71.61. Let’s see what next week brings after the end of the Japanese fiscal year."

On Monday and Tuesday, the Yen was down -0.32% on Monday and -2.17% on Tuesday. Furthermore, $GOLD plunged from $936.50 at Friday’s close to $921.50 on Monday and $887.80 on Tuesday.

So there you have it; Tuesday’s Humungous rally was based on expansion of debt in Japan, i.e., the Japanese Carry Trade, and the selling of commodity contracts.

But what did the banker CEOs tell you was the root cause? They said Tuesday’s rally was caused by strengthening in the asset-backed securities market!! What a disgraceful conduct by leading bankers. These people are losing their jobs by the day it seems, and now they are on their hands and knees pleading for the public to trust them that the assets they price in their own holdings do not need to be questioned, but - aha - the assets the public holds (ie, gold and high-yield money market paper) need a haircut.

You know, this is deplorable. I say, their Boards of Directors can terminate all these bankers and replace the CEO office with the legal dept, as has been the case, and it still doesn’t add up to a hill of beans. They continue to flat out lie, and now think a lawyer is going to talk their way out of court.

I’ll be blunt about this. Tuesday’s Bear market rally was a joke. The comments of the leading bankers will be recorded and used against them in civil and criminal proceedings to come when this whole sick HB&B charade comes to a conclusion.

Yes, trading is about prices, and figuring out what is coming down the line in the days ahead. It’s not difficult to figure out what’s happening here, so as a trader there are profits to be made in the volatility. But as a self-respecting human being who cares about the society he lives in, something has got to be done to stop this charade.

The pretense is only going to get worse until extreme volatility pushes the People out of capital markets altogether and then these bankers can play with themselves and their Monopoly Money.

Comments

[insight13]

whyisn't debacle being called a SCANDAL which it is? The Teapot Dome scandal is still in college text books??? All we hear and
read is Subprime mess brought on by lying first time home buyers, which is a copout, that the media, CNBC the worst, pushes backed by $$$$ and the untouchables...billion... energy companies.

[contrariwise]

No doubt you have a point. But what that point is - is not obvious. How about defining your terms and providing links? For instance - WTF is HB&B? And what about naming a specific CEO (or three) and quoting them, rather than pointing to them in the abstract and paraphrasing what they allegedly collectively said. Doesn't mean you don't have a point, but your credibility suffers.

[kkin365]

This post completely escapes me. Is this spinning?