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.

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?

JP Morgan - Earnings Fraud Once Again, Again...

Ok, this is getting to be like a habit. The last time they reported great earnings they used accounting gimmicks and loan reserves for most of their profits...even with all the free money and fake accounting given to them thanks to the Fed, they made most of their money by reducing loan reserves because everything was getting "better and better and better". Interesting, this time they make a point to say profits were reduced in the consumer lending division and performance was unacceptable in that division. Ohh, so  commercial and wholesale loans require 1.5 billion less in reserve requirements therefore we made 1.5 billion this quarter on bad loans?! If Dimon and company can't make money the old fashioned way when they still get money and credit given to them free and when they still mark assets a mystery prices - what's going to happen when things get really bad.

Jamie, is succession planning still priority #1? We really believe you in zombieland! Time for the market to go up on this solid news...we believe you Jamie and we believe you Benakejing. NOT!

JP Morgan then and now

If anyone is intersted to understand the reason that JP Morgan Chase keeps getting the gravy deals from the government and the Fed...there is quite a lot of precedence...fake accounting and all. Also, please read: More dollar what-if discussion this is a post I wrote last year and paints a clean picture if the lengths to which central and fractional reserve banking goes to short currency into existence.

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!