Y
ou only get out of life what you put into it. Nothing great is achieved easily or effortlessly. Knowing what you want in life and then having the right mix of patience and preparation will make the difference between success and failure. Once you understand that, anything and everything you desire is within your reach. ************************************************************************************************************************
The reason that politicians try so hard to get reelected is that they would 'hate' to try to make a living under the laws they've passed. ************************************************************************************************************************
Financial Power Elites and the Federal Government are both wedded to lies, half-truths, misrepresentation, omissions, fraud, corruption and the full panoply of propaganda. To tell the truth is to bring down the entire status quo.
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Anybody with a functioning brain already knows the Fed is "pushing on a string". We already know that "this will not end well."
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Millions of homeowners are now upside down, because the housing bubble - fed to a large extent by fraud - has burst.
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Americans have completely lost faith in their Financial Elites and government, for obvious reasons.
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The Federal government has betrayed its people in the most profound way. The Foreclosure crisis is only one moving part in a much larger machine bent on impoverishing the citizenry for the benefit of the Power Elites.
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Once a market has been poisoned by fraud which goes unpunished, then institutional players will avoid that market as untrustworthy.
Without institutional trust and participation, the market then withers on the vine-- exactly what has happened to the U.S. mortgage securities market. The market for mortgage-backed securities has vanished, except for one player: the Federal Reserve, which has bought a staggering $1.2 trillion in the past 18 months to create the facsimile of an active market.
The only mortgages being traded are those 100% guaranteed by the U.S. government: in effect, the risks intrinsic to a corrupted market have been shifted to the taxpayers, while the criminals who profited from the fraud and embezzlement got away scot-free.
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Every day I ask myself how allegedly brilliant economists, the best and the brightest, cannot see that continuing down the current path will lead to a situation like we recently saw in Greece.
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We've spent six decades passing the generational buck -- taking ever-larger sums from the young and giving them to the old, while promising the young their turn, when old, to expropriate their own offspring. This massive Ponzi scheme is turning the American Dream into the American Nightmare.
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The "brilliant idiots" that we call leaders and professors want to go back to the well "one more time" hoping the system will right itself by more spending even though it should be perfectly obvious that mathematically, demographically, and in actual historic practice, that more government spending cannot possibly work.
************************************************************************************************************************ Anyone who believes the foreclosure crisis can be contained is deluded, because the real issue in play is the citizens' trust in their government's ability to govern the nation's Financial Elites according to the rule of law. Clearly, our government has failed its citizens--utterly, completely, totally, at every level of governance (Federal, State, local) and at every level of oversight and regulation.
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At present, the governors of the Fed are creating massive distortions in the financial markets with little hope of improving real economic growth or employment. There is no question that the Fed has the ability to affect the supply of base money, and can affect the level of long-term interest rates given a sufficient volume of intervention. The real issue is that neither of these factors are currently imposing a binding constraint on economic growth, so there is no benefit in relaxing them further. The Fed is in fact, pushing on a string.
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When the price of oil increases, the cost of nearly all economic activity rises. Oil supply and demand imbalances can destroy our economy.
The world's oil production capacity may not be sufficient to match growing demand in coming years. The potential for short-falls arises from geological, infrastructure, and political/economic constraints limiting the ability of world oil production capacity to grow while demand continues to rise. If oil supply cannot meet demand a price spike will be triggered, with major detrimental effects on economies, especially those heavily dependent on oil imports.
The probability that oil production on our planet has already peaked carries with it a death sentence for billions of people within a single generation from now.
When we explore the economic effects of ever rising oil costs on transportation, electricity, economic growth and contraction, political power, civilization and – perhaps most importantly – food production. The picture is horrific, the ramifications being the end of the industrial age.
In 1859, upon the introduction of petrol extraction technology, the world started running out of oil. There is only so much of it, and
we have now reached a point where more than half to two thirds of it have been used up. Every drop that is left to find will be hard to get at and more costly with each passing year. What most people do not realize is that 60% of all hydrocarbon resources have be applied to food production.
Through the use of petrochemical fertilizers, pesticides, herbicides, diesel fuel for tractors and harvesters, gasoline for farm-to-market transport, gas generated electricity for refrigeration, plastics for packaging and storage, the lion's share of this resource has been used for food production. Oil based agriculture is primarily responsible for the world's population exploding from 1 billion at the middle of the 19th century to 6.3 billion at the turn of the 21st. As oil production went up, so did food production. As food production went up, so did the population. As the population went up, the demand for food went up, which increased the demand for oil. The price of food will now skyrocket because of the cost of fertilizer will soar. The cost of storing and transporting the food that is produced will also soar.
In order for the planet to continue to support humanity, it's numbers will have to be reduced dramatically.
THE WORLD IS HEADED FOR A MAN MADE CATASTROPHE OF AN ENORMOUS MAGNITUDE AND 90% OR MORE OF THE POPULATION DOESN'T HAVE A CLUE. REMOVING A 100 CLUELESS IDIOTS FROM CONGRESS AND REPLACING THEM WITH 100 MORE WILL NOT EVEN SLOW THE CRISIS THAT IS HEADED OUR WAY.
HERE IS A PDF THAT EVERY THINKING AMERICAN SHOULD READ;
The Next Oil Shock?
http://www.parliament.nz/NR/rdonlyres/7BEC9297-DEBE-47B5-9A04-77617E2653B2/163251/Thenextoilshock3.pdf ************************************************************************************************************************
THE PRIMARY POLICIES OF POLITICIANS THESE DAYS ARE IGNORANCE AND INCOMPETANCE.
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All these denials by banks insisting that they have no foreclosure problems, remind me of the Wizard of Oz telling Dorothy to "pay no attention to that man behind the curtain. Dorothy wasn't fooled either.
************************************************************************************************************************ WHAT IS MOST INTERESTING TO ME IS THAT IN A FEW MONTHS TIME WE HAVE GONE FROM A MANTRA OF RECOVERY IS GUARANTEED, TO NUMEROUS ARTICLES ABOUT REVOLUTION. THAT'S NOT HEALTHY. WHEN THE FREQUENCY OF EMOTION OSCILLATES THAT VIOLENTLY OVER A VERY SHORT PERIOD OF TIME, SOMETHING IS VERY WRONG.
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If
the Fed is right about QE2, then investors and America have no worries. If the Fed is wrong, America faces the biggest economic crisis in it's history. Tarp, bailouts, stimulus, incentives to auto and home buyers, QE1 and the Feds unending jaw boning have all failed miserably. Why should QE2 be any different? The Fed stands firmly and arrogantly opposed to financial gravity, their policy positions and perscriptions are political not realistic. ************************************************************************************************************************
UNLESS FORECLOSURE GATE IS COVERED UP BY OUR GOVERNMENT THIS IS GOING TO BECOME THE BIGGEST SHIT STORM AMERICA HAS EVER SEEN
The largest problem for the economy could be - not from mortgages themselves - but from the securitizations of those mortgages. The impact from foreclosure gate on the securitized market could be huge. We have a larger and more significant concern, which, if proved out, could call into question the validity of nearly all securitizations. The current scandal may give investors an opening to challenge the legality of deals, threatening to unnerve financial markets completely.
Those challenges, which would result from the revelations unearthed during the foreclosure process, could then be used to investigate the documentation practices that occurred when these mortgages were first given to borrowers. Inflated income levels, fake home appraisals and other lies inserted into mortgage documents -- something Wall Street and Washington have long suspected, but never truly investigated -- could then be used to force big banks to buy back the garbage they peddled in the first place to unwitting investors. This would collapse every bank that sold this toxic crap in any quantity.
Just four firms dominate the trustee market for mortgage-backed securities in which the mortgages aren't guaranteed by Uncle Sam: Deutsche Bank, U.S. Bancorp, Bank of New York Mellon, and HSBC serve as trustees for 70.5 percent of all such issuance since 2005. An additional four firms -- Wells Fargo, Bank of America, JPMorgan Chase, and Citigroup -- control another 29.1 percent. All told, these eight firms have served as trustees for 99.6 percent of all private-label mortgage-backed securities issued since 2005.
This potential securitization problem is why bank stocks are now in big trouble. Bernanke and Geithner are now terrified of a meltdown in the securitization market.
GREENSPAN, BENANKE, GEITHNER AND HANK PAULSON ALL NEED TO GO TO JAIL ALONG WITH THE CEO'S AND OTHER OFFICERS OF THESE BANKS. EVERYONE OF THE ABOVE BANKS NEEDS TO GO OUT OF BUSINESS FOR GOOD.
NO FOREIGN ENEMY OF AMERICA HAS EVER HURT AVERAGE AMERICANS MORE THAN THESE FOUR MEN HAVE.
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The delusions continue. Unless American union workers are willing to work for $7 per hour with no benefits, the manufacturing jobs are not coming back from China. The corporate oligarchs and their bought off cronies in Congress sold the country down the river over the last 40 years. Mega-Corporation profits are at record levels as goods are produced by slave labor in the Far East at 80% lower costs than they could be produced in the U.S. With 86% of the U.S. workforce in the service industry, introducing tariffs on imported goods and devaluing the dollar will further put the squeeze on the American middle class who already have been systematically screwed by the ruling elite over the last 40 years. Our society took 40 years to dig this hole. It is now so deep, there is really no way out except for a lot of pain and time.
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One quick look at the demographics in both the united states and the UK show the present path is not sustainable and the system is bankrupt. Yet noble prize winning economists like Paul Krugman and Joseph Stiglitz cannot seem to grasp the simple reality of the situation.
************************************************************************************************************************ What we are actually facing is an all-out global currency war and old-fashioned "beggar-thy-neighbor" policies where every nation tries to devalue its currency (and anything else) to create more exports in order to boost its economy at the expense of every other nation.
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There is something intellectually suspect with the contention that low interest rates and debt creation can coalesce to generate spectacular 'returns' given that any rational look at U.S. history claims otherwise.
************************************************************************************************************************ Keynesian clowns think that the government can spend it's way to prosperity. It cannot and will not happen. We need to reduce government spending, not increase it.
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The sovereign debt problems of the weaker EU nations have been papered over without being solved and are still lingering just beneath the surface.
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Why hold enormous risk in your portfolio when the potential returns aren't particularly high?
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It is impossible to spend one's way out of a mess when the problem is unsustainable spending.
************************************************************************************************************************ Markets are totally surreal and that is because the US government has been manipulating them under the fascist model behind the curtain for years.
Now, good news is bad and bad news is good. Market manipulation is insanity and it guarantees a dreadful conclusion. There is no logic and the denizens of Wall Street go right along with the scam least they lose their jobs. Most all of the economic and financial news is bad and that is a fact, even worse we have little leadership and no solutions. Markets cannot thrive on hope in the Fed or the administration or on QE2. The fundamentals simply are not there. Zero interest rates cannot last forever and neither can the growing Fed balance sheet.
The Fed's policies have been losers. How can you have faith in a failed system driven by the greed and looting of the American public by Wall Street and banking, which owns the Fed? In fact we now see them praying for inflation so their system doesn't collapse. They really believe they can propagandize the public into spending more again. That is going to be a very hard sell with real unemployment at 22-3/4% and real estate still collapsing. In June, the banks began to try to lend to the better quality, small and medium sized businesses. Thus far it has been a failure. In fact there is no upturn, or recovery, in sight.
All the Fed is doing is creating another asset bubble in the face of mark-to-model and the carrying of two sets of books by major corporations, especially in finance and banking. That means the downside risks are still latently present. What does Wall Street say about 30% of the unemployed having been out of work for more than a year and 40% have been out for more than six months? The projection is 11 million homeowners are going to lose their homes unless government offers an effective modification program. How do you get 42 million people off of food stamps? Can the health care bill be reversed? I certainly hope so because America can't afford it.
Here is an Ugly Truth about the economy, a truth that no one in power or who aspires to power wants to share with you, at least until after the midterm elections are over. It's this:
There is nothing that the U.S. government or the Federal Reserve or tax cutters can do to make our economic pain just vanish, it is going to take a very long time to solve our economic problems and we are not even being honest about most of them yet. The public has been sold this notion that somehow we can control the economy that we can fine tune it so we don't get inflation on the upside, we don't get recessions on the downside, that when something happens, the Fed can step in and offset it. The economics profession is painfully aware that this is a complete lie and soon the public will understand just how far off course America is as well.
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The current market rally is not based on a self-sustaining economic recovery, but on blind faith that the Fed can pull out a magic wand and cure everything with another round of quantitative easing (QE2).
This is nothing but a desperate attempt by the Fed to try non-conventional means to get the economy going again after a massive dose of conventional measures resulted in complete failure. ************************************************************************************************************************
A POWERFUL ADD COMING TO TV SOON.........
Mourning In America
http://www.cftr.org/ ANOTHER ADD ALL AMERICANS SHOULD SEE;
http://www.youtube.com/watch?v=x_Os0cwpCQE ************************************************************************************************************************
INSIDE JOB
COMING TO THEATERS SOON
In his new documentary
Inside Job, filmmaker Charles Ferguson spoke to some of the biggest names from Wall Street to Washington to academia to get a first hand account of what caused the 2008 financial meltdown and how the financial system reach its breaking point. Ferguson points to 20 years of deregulation, rampant greed (
a la Gordon Gekko) and cronyism. This cronyism is in large part due to a revolving door between not only Wall Street and Washington, but also the incestuous relationship between Wall Street, Washington and academia. The conflicts of interest that arise when academics take on roles outside of education are largely unspoken, but a very big problem. "The academic economics discipline has been very heavily penetrated by the financial services industry," Ferguson tells Aaron in the accompanying clip.
"Many prominent academics now actually make the majority of their money from the financial services industry, not from teaching or research. This fact]has definitely compromised the research work and the policy advice that we get from academia." "I was quite shocked at what I had learned in the course of making the film [INSIDEJOB]. Quite shocked. . . . The first [thing that surprised me the most] was how low Wall Street had sunk with regard to its ethics. When I started making the film if somebody had told me that Goldman Sachs and other investment banks had been designing securities to fail so that they can profit by betting against them, I wouldn
ʼt have believed it. I would have said, "No, you know, people donʼt do that in the United States." But in fact they did exactly that with tens of billions of dollars of securities." Charles Ferguson, Director of "
INSIDE JOB" HERE IS THE TRAILER
http://www.sonyclassics.com/insidejob/ ************************************************************************************************************************
Banks: We don't have to live with them in their corrupt, incompetent form, but we can't live without them. So we best clean uo the mess before these bastards cost taxpayers yet another trillion dollars!
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Higher taxes are on the way.
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We could see a lot of fireworks leading up to year-end.
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In general, radical change just isn't good for economies. When the future isn't predictible, people don't invest.
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The foreclosure scandal will likely depress the real estate market, as clear title for millions of homeowners comes into question.
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There are roughly 3 million vacant housing units more than usual. And more vacancies are added daily as the foreclosure process moves homes from families to mortgage lenders.
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Keynesian fools never address the question of what happens when the stimulus is cut off. None of them can see that Japan has proven in spades that neither Keynesian nor Monetarist solutions did anything for Japan but increase debt.
************************************************************************************************************************ Nearly two years after the Fed cut short-term interest rates to basically zero, more and more economists are questioning whether the US central bank is making the right moves. The economy is still very weak and unemployment seems stubbornly stuck near 10%.
************************************************************************************************************************ The public pension system is bankrupt at every level: city, county, state, and federal. We cannot afford the pension promises and benefits made to public union workers. Pension plans in general are at least $3 trillion in the hole. Changing demographics seal the fate. Few are prepared for the sacrifices that must be made to bring the system back into fiscal soundness.
************************************************************************************************************************ The Fed is myopic when it comes to the economy. It only sees money, when there are other things going on. The Fed is pumping money in with one hand, while the banking regulators are raising capital standards and marking assets down in value with the other. At the same time,
government spending and regulation is retarding growth, which offsets the impact of easy money. ************************************************************************************************************************ If you seek the truth you will be richer for it. Don't just belittle the opposition. Search for the truth. Democrats, Republicans, Independents, Constitutionalists, Libertarians all need to pull together or watch the demise of a free democratic society.
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Fundamental analysis anticipates what "should be". Technical analysis reflects what "is" – whether it should be or not.
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MARKET REVIEW
The current stock market rally is proof that the recent open-mouth activities of the Fed are far more potent and effective than the Fed's open market activities have ever been.
The world is no longer capable of economic expansion.
We are entering a period of civilization where the keyword is sustainability, not growth. Sustainability is job one. In order to incite the massive contraction that is desperately needed, economics will be used as a weapon. It is the weapon of choice when it comes to survival. The possession of Hard Assets, Energy and Fresh Water will rule the day.
In a world of $100/barrel oil, the weak die and the strong survive.
In a world of $200/barrel oil and $100/barrel water, there will not be 6.5 billion people on the earth. In today's upside-down financial marketplace logic doesn't dictate intermediate or longer term market moves.
The current market rally is not based on a self-sustaining economic recovery, but on blind faith that the Fed can pull out a magic wand and cure everything with another round of quantitative easing (QE2). This is nothing but a desperate attempt by the Fed to try non-conventional means to get the economy going again after a massive dose of conventional measures resulted in complete failure.
It is that simple.
If the Fed is right about QE2, then investors have no worries. If the Fed is wrong, America faces the biggest economic crisis in it's history. Tarp, bailouts, stimulus, incentives to auto and home buyers, QE1 and the Feds unending jaw boning have all failed miserably. Why should QE2 be any different? The Fed stands firmly and arrogantly opposed to financial gravity, their policy positions and perscriptions are political not realistic.
What goes around, comes around – even for bankers. The nation's top mortgage lenders are under attack from both sides as they navigate through a foreclosure nightmare. This storm is going to be with us for some time. Predicting an outcome at this point is very difficult.
Currency action continues to drive the financial markets in both directions. The U.S. Dollar, which had been dropping through the floor, stabilized and even turned up last week. The prior downtrend will probably resume over the next few weeks. Since nearly all markets have high dollar correlation these days,
we could see a lot of fireworks leading up to year-end. Driven largely by the dollar, the stock market has turned a little frothy but is generally holding on to recent gains. The S&P 500 dropped hard when the dollar rallied last Tuesday, then regained the lost ground the following day.
Gold reacted negatively to dollar strength and did not bounce back as strongly as other asset classes did. Treasury yields, which had climbed sharply at the end of last week, are on the decline again. We see particular strength in the market for Treasury Inflation-Protected Securities. The TIPS rally is consistent with expectations that the Federal Reserve will launch a new wave of quantitative easing at its November 2-3 policy meeting.
That also happens to be election week in the U.S., so there may be interesting news on several fronts. Total insider sell transactions relative to purchases on the New York Stock Exchange are running at a ratio of more than four to one over the last eight weeks. The normal reading, because of options selling and other factors, is about 2 sales for every buy. Clearly, insiders are seeing great value only in cash. Their actions speak volumes for the veracity for the current rally.
Insider selling is just another reason, along with the mortgage foreclosure mess and fully invested mutual fund managers with no fresh powder to put to work, to be very cautious on the market.
Almost every thing is telling investors and traders to expect that a significant correction is coming. Many inteligent observers sense that something is going to trigger
a decline so sharp and "unexpected" that the mainstream media shills will be gulping for "answers" when the reality has been staring them in the face all year: the recovery and current market rally is nothing but manipulation and those who have believed in it are simply delusional. ************************************************************************************************************************
"Habits change into character."
Ovid
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"It is conceivable that accommodative monetary policy could provide tinder for a buildup of leverage and excessive risk taking."
Fed Vice Chair Janet Yellen
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"There is the possibility... that after the rate of interest has fallen to a certain level, liquidity preference is virtually absolute in the sense that almost everyone prefers cash to holding a debt at so low a rate of interest. In this event, the monetary authority would have lost effective control."
John Maynard Keynes,
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"There is no means of avoiding the final collapse of a boom brought on by credit and fiat monetary expansion. The only question is whether the crisis should come sooner in the form of a recession or later as a final and total catastrophe of depression as the currency systems crumble."
Ludwig von Mises
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"I admit it: I want to see the banks feel some pain. Most people do, I think. Banks did terrible things during the subprime bubble, and they still haven't paid any real price. I find myself rooting for judges to rule against banks in foreclosure cases. I would love to see these big investors put the serious hurt on Bank of America, which will encourage other investors to pile on.
Joe Nocera
THE TEN LARGEST BANKS SHOULD ALL GO OUT OF BUSINESS. THEY ARE CRIMINAL ENTERPRISE AT IT'S FINEST OR WORST DEPENDING ON YOUR POINT OF VIEW. EITHER WAY THEY ARE RUN BY WHITE COLLAR CRIMINALS FOR THE BENEFIT OF ELITES AND MANAGEMENT.
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"...in an information-rich world, the wealth of information means a dearth of something else: a scarcity of whatever it is that information consumes. What information consumes is rather obvious: it consumes the attention of its recipients. Hence a wealth of information creates a poverty of attention and a need to allocate that attention efficiently among the overabundance of information sources that might consume it"
Herbert Simon
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"That's why most people, myself included, have no sympathy for Bank of America's legal predicament — and no patience for its "we're not the bad guys here" arguments. It is absolutely true that the homeowners that Bank of America wants to foreclose on are in default on loans they should never have gotten in the first place. (Gee, whose fault was that?) But it simply does not follow that the bank therefore has an absolute right to take back the home. Under the law, it has to prove it has that right — by filing documents that show that the owner of the mortgage has conveyed that right to it. That's why this affidavit scandal isn't some legal nicety. It's about the single most important value of American jurisprudence: due process."
Joe Nocera
This is why I have been hammering the fraudclosure issue so hard — my focus is on the rule of law, property rights and due process. The banks expediency needs does not mean that they get to throw away centuries of laws because they are inconvenient.
