RiskAverseAlert

Time for the U.S. Economy to Reindustrialize

Is the author saying we are to be saved by fascism? Public-Private partnerships, wherein private companies drive the availability of finance, which in turn drives the availability of infrastructure needed to sustain an advanced economy (in this case, electricity) is what Mr. Steinberg essentially is proposing via his call for the transformation of knowledge-based commerce into utilities. How is this any different than what Mussolini imposed upon Italy in his time?

A better approach is bankruptcy reorganization of our dead, overbearing, overreaching globalization junkies (at whose core finds the companies indicated here) and resurrection of national banking along lines Alexander Hamilton developed. Then, we can get on with the job of a massive build-out of 4th generation nuclear power facilities and a transformation from a hydro-carbon-based economy to a hydrogen-based economy, financing this at rates of interest the private sector simply cannot compete with.

Charlie Gasparino: Another Crash 'Has to Happen Again'

I agree. Equity appears well on the way to becoming dead money. Yet, even now, some would pump up its currency to gain control over economically vital physical assets. Right, Mr. Buffett?

Bank of America, Citigroup, JP Morgan and Wells Fargo Stocking Up on Liquidity

How can one not perceive a greater measure of bank balance sheet fakery when even the long-term solvency of the U.S. Treasury increasingly is being called into question? Indeed, this might be one reason why Treasury holdings among banks are so low. When the whole thing is set to blow, why not improve momentary appearances of solvency squeezing yield further out on the risk curve? It seems that, despite last year's near meltdown of the money market, those who chase yield even among what are widely perceived "safe instruments" (agencies) either have not learned a thing or the present moment is a ruse whose intention falls under "all things are not what they seem."

Rolling Stone's Taibbi on Naked Short Sales: Close but No Cigar

Very cogent expose` revealing how power to game the system and effectively elevate volatility of select securities likewise elevates such systemic risk as could collapse whole markets. Such, too, is the work of financial industry "talent?" Hmmm.

The Coming Consequences of Banking Fraud

I'd rather be un-American than stupid, and that is why I am extraordinarily bearish like Mr. Kim. However, to call the bounce off March '09 bottom "fraud" seems a bit arbitrary to me. Why not suppose the fraud began when the [collapsed] Ponzi scheme called "structured finance" went into suicide mode with its securitized sub-prime mortgages? Or, how about when Alan Greenspan became Fed chairman and turned over central bank policy making to leveraged speculators? Then again, there was Richard Nixon's destruction of FDR's Bretton Woods global trade arrangement. Has this not proven the mother of all frauds perpetrated on the American middle class? Sure, I can buy my doodahs cheaper at Wal Mart ... now if only I could find a job...

Why Today's Stock Markets Are All About Confidence and Gullibility

Don't let Ms. Pelosi read this! Your "un-American" charge of a massive fraud being promoted from the top down might be cited as the cause of the coming run on the U.S. Treasury. Besides, it will be better if the wealthiest member of Congress (who just so happens to hold the 3rd most powerful position in government -- Speaker of the House) is sooner wiped out than left to remain prostrate to financiers who possess more loyalty to the British Empire than to any principle in defiance of tyranny, such as that put forward in the simple, single-sentence Preamble to the U.S. Constitution.

Five Reasons the Market Could Crash This Fall

Positively spot on. All the technicals quite agree. There's no doubt this rally off March bottom largely is a short squeeze. No doubt whatsoever. To wit, find me one instance in the market's bull run from 1982-2000 when RSI shot straight up like it has both in March and July. You can't, and so here's the rub...

The "wall of worry" the market is said to climb is no subjective notion. Indeed, the absence of worry is reflected both by RSI behavior since March as well as increasingly diminishing volume of shares exchanged (as you noted). What is most shocking about this is the seeming lack of fear following last year's collapse of structured finance. And now, who will back Uncle Sam? Any word yet on benevolent life forms found by rovers on the planet Mars? Notta!

You are right. We are on the verge of the most spectacular collapse since the 14th century fall of the house of Bardi. The name of the game for decades has been "Inflate or Die." With the collapse of structured finance a seminal event seizing capacity to inflate, now is time when the death of monetarism soon becomes apparent to all. The Fed already is finished. The degree to which Treasury continues its adherence to belief in the viability of the present financial system will determine whether the United States itself survives what history quite likely will call the coming Great Calamity.

The path of least resistance in the stock market, therefore, is down. Indeed, I believe equity is dead money so long as bankruptcy reorganization of the entire financial system continues being desperately forestalled for the sake of opportunities this presents to the thinnest of interests who in their extreme vulnerability likewise recognize an extraordinary circumstance in which incredible power stands to be consolidated.

Was the AIG Bailout a Goldman Bailout by Proxy?

The bigger question here surrounds the City of London's role in bankrupting AIG -- whether this was a purposeful act of war against the people of the United States and whether Goldman bore any complicity in perpetrating an act of treason...

Is a Case of Quant Trading Sabotage About to Destroy Goldman Sachs?

Furthering 7/6 3:36 PM comments by @fleeing omega, saying...

"Of course, as mentioned above, the culprit would have to have equal access to fresh trading information."

...one should recall,

"[Sergey] then proceeded to encrypt and upload to a website in Germany, with a UK owner."

Holy Big Momma Slimy Lymie, Batman!

Memories of the role the London office of AIG played in turning that company into a zombie quickly come to mind. Not exactly what you might call the work of a friend of Justice and Liberty.

Yet, too, closing remarks by @Leif Peterson (7/6 7:37 PM) also deserve consideration...

"BTW, the code was probably previously stolen and this news is merely a public front."

Which is to say all things might not be what they seem. A most reasonable possibility in a day and age when a bunch of cave dwelling, monkey bar climbing, dog gassing fleas can pull off a military-style operation against a nation that spends trillions on its defense and intelligence.