What Just Happened?

[cwd]

 

 

This looks worse on the monthly, here comes 72?

[cwd]

These guys and gals may not get every decimal in the right placed but they have obviously raised the awareness of a lot of small players in the financial markets and IMO they are on the right track.

I thought that was what our new POTUS was about, openness and tranparency in government.

 

ZH goes deeper than any other media outlet. Does anyone believe that Chuck Schumer or Mary Schapiro would be talking about HFT if it were not for ZH? Not a chance.

 

The flap about the FED/POMO and the dealers is misplaced. The Fed is buying 1.5 Trillion of paper from the dealers. They will do that in less than 9 months. This is the biggest transaction in recorded history. The dealers are getting rich off this business. There is no doubt about that is there? Does anyone think they are taking losses doing the Fed buy backs? Don’t be silly. ZH did not call this a conspiracy. But if one watches the timing of these POMO buys it is very hard to avoid the conclusion that the Fed and the dealers are on the same page. This might not be a conspiracy, but the relationship of the PDs to the Open Market Desk should make everyone nervous.

ZERO

 

Conspiracy or not, the Fed is transferring vast sums of new money to the Fraudsters, any questions where the massive bonuses are coming from?

[DrStool]

More gross misinformation and hyperbole from ZH. It continues to be my feeling that if we can't fight this mess with truthfulness, then we damage our cause.

 

OK, not that it matters, but the correct amount that the Fed is buying from the PD's is $500 billion. The $1.25 trillion in MBS purchases, is by and large being arranged via the Fed's asset managers with players other than PDs, including in particular, mortgage banks, Fannie, Freddie, and commercial banks. Very little of the buying of MBS is done with the PDs. Most of the remaining $500 billion has already been purchased.

 

Yes, we have seen the impact, and yes it was the Fed's intent, and the Fed certainly never made a secret of it, in fact, they have continually been announcing their plans to the world. Furthermore, as I have pointed out many times through the years, the Fed has never made any secret of the fact that it "conspires" with the PD's on a daily basis to keep them afloat and help them earn profits. This is described in some detail on the Fedpoints discussion on the NY Fed website, and I have featured the exact paragraphs several times in these pages and in the WSE, beginning in 2003 and 2004 when I first read the relevant paragraphs.

 

Moreover, the Fed has not "timed" it's purchases. It's been pretty much a straight-line average all the way through the program, give or take a few billion here or there.

 

So if it's a conspiracy, or simply part and parcel of OMO, it's not something that the Fed has ever hidden from market participants. In fact, we have been able to use the information to profit from the market movements that naturally arise from these operations. The fact that the Fed has made this information public on a regular basis has enabled us to take advantage of the information by properly analyzing and understanding what it means in terms of the impact on the market.

 

So once again, while raising the issue, ZH has misinformed the public and created an impression that something is terribly amiss, when in fact, this is the way it has always been done, it is not being done in secret, and when the information is properly viewed and analyzed it can be used to profit.

[cwd]

In honor of this week's Jackson Hole meeting BP

 

[mdporter]

CFTC Gets Ready To Skullf**k Small Investors Using Commodity ETF's

 

Something tells me this is gonna be an expensive lesson for yours truly w.r.t. to my position in UNG

 

Going to the Walmart to stock up on some KY

 

Real progress would be made if Goldman Sachs and Morgan Stanley were banned from all trading.

 

Of course Morgan and Goldman would never allow that to happen!

[Jimi]

More gross misinformation and hyperbole from ZH. It continues to be my feeling that if we can't fight this mess with truthfulness, then we damage our cause.

 

OK, not that it matters, but the correct amount that the Fed is buying from the PD's is $500 billion. The $1.25 trillion in MBS purchases, is by and large being arranged via the Fed's asset managers with players other than PDs, including in particular, mortgage banks, Fannie, Freddie, and commercial banks. Very little of the buying of MBS is done with the PDs. Most of the remaining $500 billion has already been purchased.

 

Yes, we have seen the impact, and yes it was the Fed's intent, and the Fed certainly never made a secret of it, in fact, they have continually been announcing their plans to the world. Furthermore, as I have pointed out many times through the years, the Fed has never made any secret of the fact that it "conspires" with the PD's on a daily basis to keep them afloat and help them earn profits. This is described in some detail on the Fedpoints discussion on the NY Fed website, and I have featured the exact paragraphs several times in these pages and in the WSE, beginning in 2003 and 2004 when I first read the relevant paragraphs.

 

Moreover, the Fed has not "timed" it's purchases. It's been pretty much a straight-line average all the way through the program, give or take a few billion here or there.

 

So if it's a conspiracy, or simply part and parcel of OMO, it's not something that the Fed has ever hidden from market participants. In fact, we have been able to use the information to profit from the market movements that naturally arise from these operations. The fact that the Fed has made this information public on a regular basis has enabled us to take advantage of the information by properly analyzing and understanding what it means in terms of the impact on the market.

 

So once again, while raising the issue, ZH has misinformed the public and created an impression that something is terribly amiss, when in fact, this is the way it has always been done, it is not being done in secret, and when the information is properly viewed and analyzed it can be used to profit.

Word, Doc. Word.

 

ZH is populated by ill-informed idiots who insist on broadcasting what they don't understand and which they are too lazy to research. I've come to believe of them that any actual insight is clearly accidental....

 

Your subscribers are a fortunate lot.

[Goldmember]

Cutting out individual investors isn't the goal, said Bart Chilton, a CFTC commissioner, in an email. "The Commission has never said 'You aren't tall enough to ride,' " Mr. Chilton said. "I don't want to limit liquidity, but above all else, I want to ensure that prices for consumers are fair and that there is no manipulation -- intentional or otherwise."

 

If natural gas falls low enough the only threat is to Taco Bell...when a million BTU's can be had for around the cost of a bean burrito.

[T_Slim]

Just came across this on a blog . . .

 

``A number of US-based finance blogs are abuzz with rumours about the Bank of Montreal.

 

Dan Amoss is the Managing Editor of Strategic Investment, a highly respected US newsletter. According to Amoss – who is famous for calling the crash of Lehman Bros, Bear Sterns and other giants before they failed – a major bank is lying about its ability to pay shareholder dividends, has been gaming its books, and is about to crash.``

 

[BusKow]

The musicians are bad and the vocals are worse, butt it's Better Than Expected

[Dharmaeye]

I still think this is all going to end in violence.

 

http://www.sondrak.com/index.php/weblog/clank6/

[DrStool]

Word, Doc. Word.

 

ZH is populated by ill-informed idiots who insist on broadcasting what they don't understand and which they are too lazy to research. I've come to believe of them that any actual insight is clearly accidental....

 

Your subscribers are a fortunate lot.

 

Thanks for your support Jimi.

 

Accuracy matters. I always worry about making statements that isn't backed by the facts. Other people apparently don't have such compunctions.

 

The only way to fight evil is with the truth. If you attack it with lies, then you are no better than those you attack. There are too many who are willing to be led by charlatans. We are in grave danger in this society of seeing a charlatan emerge whom many people would be willing to follow blindly. We've seen it before in history, and we don't want to live through such a time again.

[Charmin]

I agree. Leave any system of economics or government in place long enough and the sociopaths will rise to the top, eventually ruining it for everyone, including themselves. Inherent in the cycle of humanity is its own self destruction. Capitalism, particularly the American brand of corporate capitalism that favors large enterprises relatively unregulated by the state, is well suited to this cycle in its survival of the fittest mentality. At its core, and I know most would disagree, I believe that it is an evil system, but then, so is communism, so I don't know what the answer is.

 

Let's see - the country went from bondage and battled to achieve liberty that gave us some freedom of choice and a few rights which lead to some abundance and since we had so much of this we all became complacent and eventually apathetic about the government getting out of control. After being apathetic for a bit we decided to become dependent upon the government and then thought we were still free and when the abundance diminishes the dependent may realize they are actually back in bondage. Were we "forced" into being dependent? If the dependent got upset about being in bondage and wanted out of it there would have to be bloodshed and war to start another cycle. The end game is in place, so I don't think we will go from bondage to liberty once again. Capitalism can be evil when those who run it are evil.

[jickiss]

jickiss is back!

 

 

 

jickiss is back!

 

and

 

here is the Secret jickiss doolar gold indicator, updated. it is Flashing the Danger signal. Clear as ringing a bell.

 

by the by, but

 

for the record, frequently, as your jickiss tries to post, internet explorer stops working, and says that a malicious whatever, associated with the web page, tried to do something, so it shuts down.

 

interesting....does this happen to others?

[quanta]

Law of easy money

 

A 300-year-old example of quantitative easing

 

"IF FIVE hundred millions of paper had been of such advantage, five hundred millions additional would be of still greater advantage.” So Charles Mackay, author of Extraordinary Popular Delusions and the Madness of Crowds, described the “quantitative easing” tactics of the French regent and his economic adviser, John Law, at the time of the Mississippi bubble in the early 18th century. The Mississippi scheme was a precursor of modern attempts to reflate the economy with unorthodox monetary policies. It is hard not to be struck by parallels with recent events.

......

Law’s insight was that economic activity could be boosted by the use of paper money that was not backed by gold and silver. He was well ahead of his time.

......

The French state’s finances stayed weak, helping trigger the 1789 revolution. The idea of a “fiat” currency was perceived to be the essence of recklessness for another two centuries and the link between money and gold was not fully abandoned until the 1970s, when the Bretton Woods system expired.

 

Of course, the parallels with today are not exact. Law’s system took just four years to collapse; today’s fiat money regime has been running for nearly 40 years. The growth in money supply has been less excessive this time. Technological change and the entry of China into the world economy have generated growth rates beyond the dreams of 18th-century man. But one lesson from Law’s sorry tale endures: attempts to maintain asset prices above their fundamental value are eventually doomed to failure.

 

I just cut a few snippets out of this article, it's not very long, worth reading to get the whole history if you are not familiar with it.

[Charmin]

If you didn't already know - cash for clunkers expires Monday, August 24 8:00pm Eastern. 3 Billion in one month.

 

Toyota Corolla is the front runner

 

you still got till Nov. 30 to get $8000 to buy a house. Go for it. Why there's still plenty of stimulus to go around.