The manipulators are at it again...welcome to the next bubble

In the past bubbles have been blown by regulated schemes that are designed to encourage mal-investment, speculation, alternate realities and ultimately wealth transfer. The theory is always that there is a completely new way to ignore a problem, that previous practicality was old fashioned and not reasonable relative to the "new" alternative.

Everyone in America needed to have house, because it was a new paradigm. Under both Clinton and Bush, the financial elite used every regulatory mechanism to force feed Americans real estate and legalized nearly any scheme that would allow the concepts to funnel money to Wall Street and make the inflationary debt money expansion scheme to look like a reasonable idea.

So far, this fine administration has also come out with one scheme after the other. This is not that different from most of the administrations in recent history. However, Obama has topped the list with his crazy Wall Street support, financial and regulatory schemes. 

Clearly, politicians either deliberately seek to mis-underestimate, misunderstand and mis-market schemes that are not good for their constituents but rather quite good for their buddies. The stimulus, FRE and FNM guarantees, bailout of JPMorgan, Goldlman Tax, AIG and other big banks and the absolutely disastrous healthcare plan are examples of deliberate deceptions that are not designed to benefit the people but the special interests and the subversive agenda. Ohh, I forgot to add Cap and Trade (and Tax), that's another Obama and Gore biggie.

I have discussed this issue before and its clearly a fraudulent scheme. There is no way to accurately measure or manage the tradable credits and the related products that will popup within cap and trade plan. There are lots of ways to distort and misuse the credits however and of course, the executives at JPM and Goldman Tax and Gore and Company will get quite a nice bonus for many years to come. I imagine Obama will have a corner office at any of these companies or many of them when he's out. There is no question about it, Obama (and most of the legislature too) is corrupt and his idea of "change that you can believe in" is more like "change only a few especially interested rich guys get to believe in". The rest of us have to pay for the fumblings if one wants to generously call them that. I am deeply disturbed by this president. Cap and Trade is a great example of the very same arguments applied to CDO, CMO, CDS crisis all over again. This is an example of legally regulated and created fraud and deception aimed at encouraging complacency and a false sense of security just like the FDIC, FHLN and Fed...and that has not been pretty so far...it will get a lot worse.

Any wonder how we got fractional reserve banking to be to the point that there are NO longer real requirements for collateral from the banks and turned into a derivatives based ponzi money creation scheme?

This video is a good commentary on Cap and Trade and I thought it would be good to add to this post.

GM IPO

Goldman made a lowball bid of just 0.75 percent of proceeds, supposedly to win the IPO business. The reaction was that Treasury declined the Goldman lowball offer, and forced the lowball fee on four big Wall Street banks that are set to lead the offering. Those banks could have made up to three or four times the $120 million they will split on the deal.

IPOs of this size usually cost close to 3 percent even up to a full 6 percent. Other bids were said to be generally in the 2 to 2.5 percent range while Reuters notes that a 0.75 percent underwriting fee is among the smallest in percentage-terms, of the top 10 IPOs of all time.

Goldman Tax strikes again and they are not even in the deal!

About time for another Madoff style ponzi scheme blowup...

• Goldman made just $2.3 billion in 2008 but paid $4.8 billion in bonuses. Citigroup and Merrill Lynch, Bank of America  combined lost $54 billion in 2008, but paid out $9 billion in bonuses.

• Morgan Stanley earned $1.7 billion in 2008 with bailout money, and paid out $4.475 billion in bounses JPMorgan earned $5.6 billion in 2008 and paid bonuses of $8.69 billion.

• Wall Street if asked for a claw back, the funds would likely come from current profits. 

The above is, to the letter, a description of a ponzi scheme. The participants in the scheme are (and have been for years) taking money which is not rightfully theirs and distributing it as they see fit so that they can have their $100,000 a month Hampton's house and lover at the Jersey shore. The reality is that you can not run a business at a deficit where you create NO value for 20, 30, 40 or even 50 years and expect anything more than a ponzi scheme. And ladies and gentlemen that's what we have before us above - a legally regulated and enforced ponzi scheme courtesy of the Fed, past and current presidents and congress.

Who will it be this time?

Goldman Tax - No Truth, Just More Lies

That's why we get to pay their bills. I am quite sure that the SEC fine was paid with profits generated by an off balance-sheet vehicle that is unaudited, masquerades as an an airline and somehow ended up with a bunch of GS call options prior to this deal as another so called "hedge". In fact, I would reason that Goldman made 2 to 3 times the cost of this settlement, at least, due to their extensive skills in financial chicanery, regulation circumvention and general manipulation, prior to the settlement announcement. And what would prevent them from doing that? ohhh, silly things called regulators and laws. But as you can see it is more profitable to circumvent social, implied or legal responsibility because when you can decide to take the system down at your will, you are the army, government and police - so anything is possible. Even the little pawns like the SEC and CFTC are scared of you when you are Goldman Tax.

One thing is for sure, you and I will get the bill. So, now that they got someone else to pay their fine, what's next for Goldman Tax? I guess we will have to ask Obama and his boss Bernake. We must be able to get an authoritative answer there. And here it is...the quote of the week: "There will be NO MORE tax payer funded bailouts. PERIOD!" - Assistant Chief Executive of the Fed, Barack Obama.

I have heard a lot BS from Obama about one fact or another or change or another that will turn out this way or that, most of them have been outright deceptions and this statement will bear out to be aswell.

There will be bigger and bigger tax payer funded bailouts because Obama and Bernake (and as a whole the political system as it is constructed now) have the power and ethics to lie to us all and objectives to empower and enrich their special interests. Please don't forget that Goldman Tax is one of the priority interests. So is JP Morgan.

Market Marking or Book Making?

The Fed and PPT is F**Ked

Obama loves the Fed and Benake...as I said before government in general has been bought and paid by the Fed and their cronies. Please see my previous post on the subject: Votes for sale

Are you in the pocket of the government?...the wealth transfer continues

If you are not, guess who is? well your buddies at JPMorgan Chase, Goldman Tax, Bank of America and a host of other ponzi scheme, fractional reserve, derivatives money creator government lobbying manipulators...hmmmm - BANKS! The great wealth transfer continues.

90+ years of financial abuse and nothings changed

Since 1913 our governmental system has been controlled by finance...after the meltdown and clear demonstartion of the hypocrisy of the system, reforms have been made, prognostications prognosticated and guarantees made...the irony is NOTHING's CHANGED!

Funny when Russian Television has WAY more open media than its US counterparts

Maybe the US press can continue to promote the 5,000 barrels a day theory regarding our oil spill while suppress professional testimony several weeks ago that suggests its more like 95,000 barrels a day. I wonder how many other facts are being managed...