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Hmmm....I guess you can't have tax cuts AND fight two undeclared wars, charging those expenses to a credit card and not have that negatively effect the currency OR the economy, huh?? And lose thousands of young men and women and have thousands more come back crippled and mutilated? On our children's tab to boot? No kidding...
God dammed George Bush....while I was opposed to that friggin war, that screwball Bush couldn't even do THAT right. While we were there and we did what we did, idiot child should have told Iraq that we will give you the "market price" (for their oil) but that oil IS OURS. We're liberating it and taking it back to America...not that that would have done much good. While I'm at it, are we not still spending dollars stationing troops and equipment in Japan? Korea? Germany? England? Italy? Spain? And just about every other place on the globe? I was stationed in Germany during 1974 to 1976 and I'll be dammed...we're still fighting the same imaginary boogy man that doesn't exist in all these places and ON OUR DIME just like we've been doing since the end of WWII!!!! It's MADNESS and our government has plenty!!
THE ONLY WAY THIS SHIT IS GOING TO STOP (SHORT OF A REVOLUTION) IS GOING TO BE WHEN IT ALL COMES CRASHING DOWN, THE MONEY WON'T BUY ANYTHING and for all intents and purposes, we're bankrupt. That's the only thing they'll understand and when that DOES happen, you watch these Keynesian rat bastards jump ship and go to South America heading to their big ranches and compounds trying to escape justice. Well, maybe we can launch a few Predator drones and clean up this mess just like they've been doing in Pakistan and other places. They have proved that that weapons system works even if it is immoral. (no wonder they all hate us, huh??) I'd LOVE to be the one that got to push that button, while muttering under my breath..."bye, bye *insert name here*, you piece of shit. See ya in the next life."
These bastards better hope that whatever you/they call this, that it works. I'd say it could be an EXTREMELY unhealthy environment for anyone connected to the coming trials and tribulations that once worked for Wall Street OR in certain circles of the government. And history tells us that this is so....


Interesting news that major banks are upping gold lease rates. At around 6 months prior that lease rate fell to 0% to push down gold prices, but they probably ran out of gold in the vaults to do that right now. Guess gold is set to rise plenty going forward.

Though I'm more interested in all the gold certs floating around. If physical gold supply runs short and people start demanding physical gold when redeeming gold certs instead of cash settlement, things will get interesting. Will see news of mints going bankrupt when this happens.

Neon Vincent

Well, I've found out something interesting--Typepad does not like comments with a lot of embedded links; the posting software thinks it's spam. I do hope you allow my post about Risky Safety to see the light of day!


“What we have found over the years in the marketplace is that derivatives have been an extraordinarily useful vehicle to transfer risk from those who shouldn’t be taking it to those who are willing to and are capable of doing so,” Mr. Greenspan

Interesting contrast with this bit on iTulip.

"Derivatives markets guarantee a winner for every loser, but they will over time concentrate the losses in vulnerable sectors. Nature obeys Mayer’s Third Law, which holds that risk-shifting instruments will tend to shift risks onto those less able to bear them, because them as got want to keep and hedge while them as ain’t got want to get and speculate. The logic behind margin requirements in stock markets and capital requirements in banking also holds in the derivatives markets. Permitting highly leveraged institutions to hold private parties behind closed doors is the political version of selling volatility: the predictable likely gains will one day be overwhelmed by an equally predictable disastrous loss. - Martin Mayer, Somebody Please Turn on the Lights, Derivatives Strategy, 1999"


Ooh news on the lehman CDS carnival! Turns out settlement is to be Friday, and finishes at 2 p.m. I guess people involved in this knew the catastrophe that will follow, so scheduled it this close to the DOW weekend closing.



Your right about arrests Elaine but I would add HEAVY fines along with it. Chux, actually they are Freidman rat bastards.

Elaine Meinel Supkis

WG: So, they moved it from Thursday to Friday, eh? I suspect this is so they can do the 'Friday news dump'. Note that the hour is right before the stock market closes. HAHAHA.

They know what is going to happen next. They have to work hard to pretend to be amazed and shocked when the expected happens.

Still Dreaming: thanks for the quote from ITulip.com. The collective there is the oldest economics collective online. The minds there are really great and one can learn so much there! I wish our economic overlords read that site from day one. But they avoid looking at reality.

Elaine Meinel Supkis

I forgot: the CDS collapse will be in the news right before a LONG three day weekend. They set this up for that purpose.


The Credit Crisis in one paragraph:

"The credit crisis was caused by 1) ..securitized mortgage paper, that was 2) rated triple AAA by Moody's and Standard & Poors, which was then 3) "insured" by credit default swaps (CDS) -- the unreserved for, shadow insurance products 4) whose exemption was made possible by the Commodities Futures Modernization Act. That legislation exempted these derivatives from any supervision or regulation. The lack of reserve requirements is why there is now $62 trillion in CDS, many of which will never pay their counter parties the promised insurance."

And with a little help from:
"One other thing I've done, is I've called on private sector mortgage banks and banks to be more aggressive about lending money to first-time home buyers. And the response has been really good. There's a lot of people in this -- our communities around the country that deeply care about the issue of homeownership, and they've been responsive."

- George W. Bush, U.S. President, March 26, 2004


At the end of the day it is all about accountability. So far it's just the taxpayers the world over footing the bill. Only if and until the taxpayers say enough with the KY Jelly, fire and jail the bastards, will it mean anything.

Saddam got hanged for much, much less.

CEO Nutcracker

Some interesting things brewing.


I'll check in later.


There are just so many people that should be hanged, then thrown in jail, and then fined, where do you start?
If I may open the window for a moment to let in some fresh air:
It's John Lennon's birthday today.
What's your favorite John Lennon song?


S & P 500 is down over 30% so far this year.
Now the retailing industry has posted its new
forecast for the Holiday season-the worse in decades is coming. Santa Clause-stay home.
Meanwhile Obama and McInsane continue to tell
the American people how they are going to fix
this economy with no details. Cook County Sheriff in Chicago was on CNN this morning with 43,000 homes in foreclosure, and finally someone has a heart, he said he isnt going to throw them out. Plus the Cook County Jail cant house 43,000 home-owners now labeled criminals. Now AIG is
planning Condom 2 party. And no-one is going to jail???????????


"The government’s move will not succeed in restoring confidence in the banking system. Given the weight of the financial sector in Britain, far higher than anywhere else, a comprehensive bailout package involving every UK bank and every UK deposit would be far beyond the means of the government."

"To give some indication of the scale of what is involved—the assets of what are now, in many instances worthless loans of just four of the high streets banks, RBS, HSBC, Barclays and Lloyds TSB/HBOS—total €2 trillion, €1.6 trillion, €1.5 trillion and €1.4 trillion respectively. This is more than four times the value of Britain’s GDP."

"While some of the most important banks and building societies will be eligible for cash injections by the government, others will be allowed to go to the wall or be taken over. In any case, the government will struggle to find the resources to fund this rescue of the biggest banks. Its coffers are empty."

"According to the Institute of Fiscal Studies, this year’s budget deficit is likely to rise to £65 billion, a 13-year high that amounts to 4.4 percent of national income. The state takeovers of Northern Rock and Bradford and Bingley—set to cost taxpayers at least £130 billion—have already brought the total borrowings to GDP ratio to about 48 percent."

"Further injections of public cash, into banks that are losing their value, could result in the financial insolvency of the British government itself. Even in the mid 1970s, in spite of Britain’s dire economic straits, the government was able to appeal to the International Monetary Fund for loans. Today such an escape route is no longer possible."...



Paulson has been forced to let the SWF's get equity rather than crap:



Possible game plan for mega-banks:

1) Wait for Friday's huge CDS fireball to consume many hedge funds, insurance companies and small banks (since market closes soon, dislocation will be postponed till Tuesday open)
2) Weekend tidal wave of bankruptcies destroy all the tiny fellas
3) JP Morgan and Goldman steps in to buy up all the corpses before Tuesday open
4) Sell all the pieces to Uncle Sam under that $850b giftwrap!

Lots of money to be made in this one! Damn I wanna make out like a bandit too!


One step back to Real Bills Doctrine?



Go to EBAY and type in silver bullion. 70% premium to the fake paper price on CRIMEX. WWW.GATA.ORG Bill Murphy,Chris Powell,Catherine Fitts,James Turk etc... Spent $256k of their own money to put a full page ad in the wall st. journal last January to expose the manipulation of the gold price by certain bullion banks and the FED, to artificially suppress interest rates. Its called GIBSONS PARADOX. Tinsley putt program run by Stamford Univ and US Govt. Gold price must be suppressed to get fake int rates. The lease rate expolsion is a sign the cartel is at its end. Buy physical Gold anyway,anyhow. It IS going to explode. Gold will trade at $6k per oz. and the Dow will trade there as well. In due time. When this occurs when 1oz. of gold will buy 1 share of the Dow, dump your gold for financial assets. This AM it takes 11oz. of Gold to buy the Dow. We have a long way to go.

Elaine Meinel Supkis

I have to go out soon to deal with family medical problems. Will be posting later today. So much to do and say!

I expect everyone here will keep up with the news. I read all comments and click on all links. I can't thank you all enough for this.

Sorry about typepad not allowing multiple links. Post one link at a time. It is quite OK with me to post a number of times in a row! I still click on all links.


While many are calling for more regulation we are missing an important point that Elaine brings up over and over - we already have laws, start the indictments!


"AIG to taxpayers: Pay no attention to the $440,000 spa trip"

"If we ever needed an argument against using taxpayer money to bail out private companies who made bad decisions and are teetering on the brink of extinction, this is it."

"Less than one week after the U.S. government forked out $85 billion related to the American International Group (AIG) mess, the AIG executives took a little jaunt to a California spa and spent $440,000 on their stay."...


Neon Vincent

OK, I'll try again, this time with just the most essential links.

First Gankutsuou: the Count of Monte Christo, then Fullmetal Alchemist (to be fair, I brought it up first, but you ran with it), and now Risky Safety! LMAO! You're the only person I know who blogs about financial matters and uses anime shows and characters to illustrate your points about money and I love you for it. Otaku unite!

Neon Vincent

Next part.

BTW, you forgot to mention one key thing about Risky, both in this story and the one from a year ago, that reinforces your theme about the current troubles being the result of a raid on the Cave of Wealth and Death. Risky is a shinagami or death goddess. From Wikipedia: "[S]hinigami resemble small, cute versions of Death, and try to convince their victims to commit suicide. The title character, Risky, is a shinigami who attempts to use a miniature scythe to send the female protagonist to the land of the dead." So, when the bankers choose Risky, they're courting someone who wants nothing more than their self-destruction. I'd say they've managed a good start so far.

BTW, for those of you who wish to see Risky and Safety in their original Japanese form and not Elaine's Westernized adaptation (although I have to admit, you got the gist of the characters right for an American audience), click here. Note that Risky is even more of a wicked little Goth girl than Elaine draws, while Safety is quite the little angel.

Neon Vincent


Speaking of Death Gods in pop culture, are the Merovingian and Persephone from The Matrix going to make cameos in your posts?

Also, I don't suppose you've alluded to the destruction of the bank buildings at the end of Fight Club in your posts. Or have you?


Your report of the Bryan Keogh Bloomberg article 'Overnight CP Costs Jump, Bond Risk Rises Amid Global Rate Cuts', leads me to think that the commercial lending marketplace has completely broken down and that the Fed announcment of CPFF will come too late and only be a drop in the bucket as to what is needed.

Given that the commerical lending market place has completely broken down, an economic and stock market breakdown is imminent.

Soon blue helmeted military troops will be deployed under the command authority of NORTHCOM for civil security.

The emergency management provisions of the Security and Prosperity Partenership, the SPP, will be enforced and state corporatism, that is state corporate rule, will arise where stakeholders will be appointed to rule over the factors of production and oversee industry, commerce, trade and investment.

At that time, if the Fed's new liquidity facility CRFF is still in effect, it will be available only for those companies which are deemed necessary for the security and prosperity of the homeland.

Buffalo Ken

Richard I disagree with your prediction. I have more faith in the "American" spirit. Sometimes I think you have read a bit too much of the Revelation because those are older stories and such stories always need to be "melded" to the current reality.

There for sure is going to be considerable volatility, but it ain't the end of the world. Worse has happened.


Buffalo Ken

But I do think the National Guard should come home. Soldiers are way less likely to turn a weapon upon those who share their "home" area. People prefer to work together. Mutual Aid will prevail because it just makes too much sense.


Buffalo Ken

and if the Military was honest about what their best thinkers are thinking (I suspect) we could all acknowledge that US troops all around the world should be recalled so that they can work on more important things. We can't afford it for one and it is very unbalanced.

If the a sale was made to Taiwan and Taiwan spent gold, then I think Taiwan made a big mistake, but I suppose whats done is done. I also thought it was an incredible gesture from Tehran to release the US Generals that entered Iranian airspace. Hey perhaps they ended being emissaries of a sort. Who knows.



The US - not to mention world - economy takes an enormous dump like this roughly every 20 years or so. The thing is, right now all paper looks like bad paper but there really are some sound assets floating around on the tides.

My wife and I are wondering whether it's time to open up the cash account and go bargain hunting.

"Soon blue helmeted military troops will be deployed under the command authority of NORTHCOM for civil security."

"Blue helmeted military troops" is an oxymoron. I remember when the Serbs took their weapons away from them and chained them to their stupid white tanks. They call those blue helmeted military troops 'smurfs' for good reason.


The US - not to mention world - economy takes an enormous dump like this roughly every 20 years or so. The thing is, right now all paper looks like bad paper but there really are some sound assets floating around on the tides.

My wife and I are wondering whether it's time to open up the cash account and go bargain hunting.

"Soon blue helmeted military troops will be deployed under the command authority of NORTHCOM for civil security."

"Blue helmeted military troops" is an oxymoron. I remember when the Serbs took their weapons away from them and chained them to their stupid white tanks. They call those blue helmeted military troops 'smurfs' for good reason.


Please pardon the double post - Typepad crapped out on me. (Again.)

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