This will be interesting. An article about the EU breaking up if Germany doesn't bail out Greece. Greece is one of the weaker links in a handful of countries that are on the brink of financial collapse. Gold may well jump in there to settle any concerns so we'll see if this combined with the market manipulation hearings here will kick this thing in the butt and light the fuse. PM up nicely at $1166.20 as of 1900 hrs cst; should make for a big Monday when it hits NY. Those paper boys better have their spurs on 'cause they are gonna have to ride hard to keep ahead of this stampede.
I see the dollar is already down .81...and silver's only moved about .14, gold around $5...with that big a move in the dollar, I would expect a huge (+5% or more) in PMs. Tomorrow will be interesting. And to further stoke the Russian conspiracy theory...isn't this almost exactly like one of the Clancy novels? Wipe out the government and military leadership then roll a few armies...interesting.
<< <i>I see the dollar is already down .81...and silver's only moved about .14, gold around $5...with that big a move in the dollar, I would expect a huge (+5% or more) in PMs. Tomorrow will be interesting >>
The Euro and Sterling are up big against the dollar the balance of currencies are flat. Remember, gold was advancing while the Euro was weakening due primarily to the "greek tradegy" and the flight to gold as an alt currency. Now that greek situation seems to be playing itself out and some questions are being answered both the dollar and gold are being sold and the Euro being bought. Obviously the dollar is being pounded and gold is rather flat ( but as you said it really should be up more in a "normal situation)) . Yes, tomorrow will be interesting and all this could change in a heartbeat. If there is a greek resolution I would expect the dollar and gold to both be hit with the dollar taking the biggest lumps......If gold doesn't take a hit I can see it stalling here under these conditions. MJ
Walker Proof Digital Album Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
The NY Post..........arrghhh.................better then nothing I guess. Thanks for the links. MJ
Walker Proof Digital Album Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
I wonder what effect this will have on the price of gold and silver. Poland's second Katyn. I vividly remember the myriad official and public threats made by Russia following Poland's withdrawing from the Soviet bloc in the past 20 years. They couldn't have come up with a better opportunity to take out all of Poland's top leaders.
I wonder how many Poles will be involved in the crash investigation. They are saying "pilot error". Based on initial reports, this crash is notably similar to the crash that killed Clinton's Secretary of Agriculture, Ron Brown in 1993 as documented in the book, "Ron Brown's Body". A fascinating read if you have the inclination.
I guess that the only way to know if Russia is somehow involved is to see what happens and whether or not Russia moves in on Poland in any way. God knows, the USA hasn't been much comfort to the Poles recently.
The price of gold will reflect more and more geopolitical concerns as this story develops.
Q: Are You Printing Money? Bernanke: Not Literally
If i read the story right, it looks like the pilot tried three times to land before crashing due to heavy fog...sounds possible that it simply was a pilot error.
"Women should be obscene and not heard. " Groucho Marx
Doesn't look like heavy fog to me. This was filmed by a Polish eye-witness (there were many Poles in the area for the ceremony) who happened upon the scene even before the investigators got there. By his comments, he didn't even know it was a Polish plane till he saw the tail marking.
"Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you." -Luke 11:9
"Hear, O Israel: The LORD our God is one LORD: And thou shalt love the LORD thy God with all thine heart, and with all thy soul, and with all thy might." -Deut. 6:4-5
"For the LORD is our judge, the LORD is our lawgiver, the LORD is our king; He will save us." -Isaiah 33:22
<< <i>Doesn't look like heavy fog to me. This was filmed by a Polish eye-witness (there were many Poles in the area for the ceremony) who happened upon the scene even before the investigators got there. By his comments, he didn't even know it was a Polish plane till he saw the tail marking.
Walker Proof Digital Album Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
Of course it's fog! But visibility is over a mile. That to me does not qualify as "heavy" fog. Maybe I'm just a layman.
.....GOD
"Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you." -Luke 11:9
"Hear, O Israel: The LORD our God is one LORD: And thou shalt love the LORD thy God with all thine heart, and with all thy soul, and with all thy might." -Deut. 6:4-5
"For the LORD is our judge, the LORD is our lawgiver, the LORD is our king; He will save us." -Isaiah 33:22
In the past 2 days I've personally talked to some Polish Air Force pilots and other professionals and they have confirmed that not only were the pilots of this plane the best (as you'd expect) but that the fog present in no way presented any difficulty at all. Also, since the plane just went into service a few weeks ago after a several-month long rebuild, its condition could not have been a cause; in other words, it was absolutely safe and air-worthy. Also, I've found out the person who filmed that video moments after the crash was a crewman for one of the Polish TV stations. Also, the official death toll was initially reported as 132 or 136, and has been officially reduced to 96 or so. However, I've been told that the difference lies in that there were plenty of security personnel on board that cannot be confirmed officially. Anyway, my guess is that there is way more to this event than we're being told.
.....GOD
"Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you." -Luke 11:9
"Hear, O Israel: The LORD our God is one LORD: And thou shalt love the LORD thy God with all thine heart, and with all thy soul, and with all thy might." -Deut. 6:4-5
"For the LORD is our judge, the LORD is our lawgiver, the LORD is our king; He will save us." -Isaiah 33:22
This accident in Smolensk carries echoes of the Miroslawiec crash of a Polish military CASA aircraft on 23rd January 2008 - a fatal combination of poor ground control, pressure to land, and severe weather conditions. these pilots were the best of Poland.
That's an interesting factoid PC.......$421 BILL bump in total commerical bank loans and leases (TOTLL chart at the ST Louis Fed's FRED2 data package). Note that since the peak of the financial crisis at the end of 2008, total bank loans and leases have been falling off at a pretty decent clip. But this amount gets it back to where it was before the fall 2008 crisis.
I hunted around a bit at the FED's FRED2 site and couldn't find anything else to link the $421 BILL to. It doesn't show up in money aggregates for example. Other than the financial crisis during the 4th qtr of 2008 there have been no other 1 week spikes in loans/leases to the tune of $400 BILL....until this one at the end of March. If you don't want to flag "liquidity" injections, just do them through some means other than M1 and M2. Denninger had a similar story to this one stating that this was enough money to bail out the whole EU, never mind just Greece. If the AIG or Lehman "back doors" are not available.....there are other alternatives.
One other consideration is the "big trip" to china to convince them to devalue their currency. Since their currency is tied to ours, is it possible the Yuan is lending support to the dollar? Would a devaluation in the Yuan lead to a weaker USD? I think so...
<< <i>That's an interesting factoid PC.......$421 BILL bump in total commerical bank loans and leases (TOTLL chart at the ST Louis Fed's FRED2 data package). Note that since the peak of the financial crisis at the end of 2008, total bank loans and leases have been falling off at a pretty decent clip. But this amount gets it back to where it was before the fall 2008 crisis.
I hunted around a bit at the FED's FRED2 site and couldn't find anything else to link the $421 BILL to. It doesn't show up in money aggregates for example. Other than the financial crisis during the 4th qtr of 2008 there have been no other 1 week spikes in loans/leases to the tune of $400 BILL....until this one at the end of March. If you don't want to flag "liquidity" injections, just do them through some means other than M1 and M2. Denninger had a similar story to this one stating that this was enough money to bail out the whole EU, never mind just Greece. If the AIG or Lehman "back doors" are not available.....there are other alternatives.
Thanks to a poster at The Tree of Liberty named SW Oregon Dave, he pointed me to the H.8 release from the Fed from 4:15 P.M. on April 9th which had this notation at the top:
As of the week ending March 31, 2010, domestically chartered banks and foreign-related institutions had consolidated onto their balance sheets the following assets and liabilities of off-balance-sheet vehicles owing to the adoption of FASB’s Financial Accounting Statements No. 166 (FAS 166), Accounting for Transfers of Financial Assets, and No. 167 (FAS 167), Amendments to FASB Interpretation No. 46(R). Domestically chartered commercial banks consolidated $377.8 billion in assets and liabilities. The major asset items affected were: other securities, mortgage-backed securities, -$5.6; other securities, non-MBS, -$15.9; commercial and industrial loans, $32.3; real estate loans, revolving home equity loans, $5.8; real estate loans, closed-end residential loans, $21.5; real estate loans, commercial real estate loans, $1.2; consumer loans, credit cards and other revolving plans, $323.9; consumer loans, other consumer loans, $41.3; other loans and leases, $8.3; allowance for loan and lease losses, $36.4; cash assets, $2.4; trading assets, other trading assets, -$1.7; and other asset items, $0.7. The major liability items affected were: deposits, large time deposits, $2.7; borrowings, borrowings from banks in the U.S., $4.4; borrowings, borrowings from others, $391.6; and other liability items, $5.1. The residual (assets less liabilities) decreased $25.9. The major memoranda items affected were: securitized credit cards and other revolving plans, -$351.3; other securitized consumer loans, -$23.3; and securitized real estate loans, -$25.7. Foreign-related institutions consolidated $20.7 billion in assets and liabilities. The major asset items affected were: other securities, non-MBS, $1.1; commercial and industrial loans, $0.7; and other loans and leases, $18.9. The major liability items affected were: deposits, other deposits, $0.5; borrowings, borrowings from others, $21.0; net due to related foreign offices, -$12.0; and other liabilities, $11.2. The major memoranda items affected were: securitized credit cards and other revolving plans, $7.3.
From this data and the tables which follow, the banksters were able to move, thanks to the FASB revisions $360.6 billion worth of liabilities off of their balance sheets and now declared as “assets” on a seasonally adjusted basis totaled $400.3 billion which is a reasonable increase and accounts for the rapid expansion in the loans and credit considering the graphs above. I do not think the United States is engaged in a back door bailout of Greece at this point in time, however, any increase in the flow of funds from the U.S. Treasury to the IMF might be the red flag we are looking for to assume we are engaged in assisting the European Union in their bailout.
SEC Accuses Goldman Sachs Of Fraud. Federal regulators charge Goldman Sachs with civil fraud in subprime mortgage securities.
Its about time. But accusing and prosecuting are not the same. I would like to see them give back the $10 Billion they took from U.S. Taxpayers(not directly but through AIG) to pay their hefty bonuses.
What ever is unwinding on the US investment banking scene, we pm holders have a front row seat. Everyone knows that there is opportunity in chaos and we noted a year or so ago that we were entering a period where unstructured, random events would shape the evolution of our boomer model into whatever is to come next.
Are we getting closer to a banking holiday or maybe even something more dramatic like revaluing the currency or will it just be that we get bent over for a VAT?
What is to become the disclosure of who is linked to whom in the GS investments, will they really go after them, these captains nay, generals of industry?
We have a bread crumb trail thought the deep dark forest in the form of the trail of GS dollars, will congress really follow the trail where ever it leads?
Can the institution funds stay in the shadow game by investing the assets of contributors into these firms that deal in dark arts?
Is this the beginning of some congressional do-over for our investment banking laws, do they really have the balls to go after GS, AIG, and the uber class of world directors?
Will they get the money from these banksters and give it back to the taxpayers where it came from or will they keep the money and hit us with a VAT anyway?
All good points mhammerman. I think what a lot of people don't realize is that whatever happens will probably happen overnight. I think there's a lot of complacency and people think that if things get really bad, they'll just take their money out of the bank and go buy some gold and silver. What they don't realize is that they may not be able to get their money out of the bank and that there may not be any PMs to buy, or at least at "reasonable" price. This is one thing that you have to be prepared for before it happens, because once something does happen it will be chaos and difficulty.
I would think it to be prudent to have your physical gold and silver in your possession.... prior to any implementation of a VAT. I suspect a VAT would not exempt the PM's..... making it much more expensive to purchase. Now that I think about it.... that would be one way for the big boys to slow us down if not stop us from purchasing the precious metals.
don't know if this link has been posted, it's quite a long read. interesting scenario towards the end and what may happen in the beginning of a hyper inflation in the US and with a relatively cash-less (using electronic funding vs paper) society we live in. with some of the mentions of gold popping in May, the Fed moving ~ 1/2 trillion last week (thanks for the link PC) .....and cohodk's return
Who paid the bonuses for Wall Street and how it worked:
1. FASB capitulates and allows holders of OTC derivatives to value them at whatever they wish. 2. International investment firms begin strong mark up policies towards their crap inventory. 3. Profits from the mark up of crap OTC derivatives by the international investment firms is recognized as trading income. 4. Tarp money comes into the firms and goes out as bonuses to the management, trading department and general employees at obscene levels. 5. Stock and bond issues are made to pay back tarp funds. 6. Therefore the money bonuses out by the international investment firms were TARP funds, not real earnings, but false FASB permitted mark up paper earnings through the trading department and declared as trading income. 7. The TARP money was paid back through the issue of stocks and bonds to the public, therefore the public paid the TARP back, not the financial institutions. 8. The obscene level of bonuses is because this game of convert false paper profit into cash into the bank account of the banksters and their merry crew is now game over. It was the last dip at the well of public funds laundered via TARP of the caved in FASB. 9. In the final analysis the public paid those obscene bonuses that were in truth, unearned.
Regarding hyperinflation and TIPS - anyone holding TIPS during hyperinflation will be in for a rude surprise - the IRS taxes unrealized gains on TIPS. So, if the principal on the bond rachets up by 10000 %, you will need to find cash to pay taxes on this supposed "gain"!
..........the world might still find the U.S. the best place to stash its cash as it has second thoughts about the euro being a viable rival to the dollar.
When an auciton fails, there are usually two options... increase the interest rate or print more money. The only advantage to the european bonds is that each country can't just print more money if they need to. That's when interest rates start to rise and before you know it, the interest payments will be too high the country will have to declare bankruptcy - or whatever the equivalent will be. Leave the union? Perhaps the EU would collapse (especially if it's Germany or France or one of the bigger countries). It's this structure that may ultimately collapse the EU.
I could see that such an event would lead to a flood of capital leaving the Euro and flooding into all kinds of alternatives, including the dollar and dollar-based assets. But how intertwined is the US and the EU financially? The collapse of the EU would probably not be good for the US either.
I wonder what kind of contingency plan there is or might be if the Euro collapses? We might see a flood of demand for PM's from Europe.
Such a scenario would see gold and the USD gaining in value together.
Such a scenario would see gold and the USD gaining in value together
Very possibly. I am of the belief that a large part of the weakness in the dollar since 2001 was diversification from the dollar. For the first time, the dollar had a "supposed" equal and countries sought to diversify their forex holdings. Now they are realizing that the EU is not as strong as the USA, but still want to maintain diversity. So since commodities are strong, they seek currencies that benefit like the Cando and Aussie. Gold is also being seen as an alternate currency. This is probably all natural and healthy. This diversification is probably more "correct" for as long as there is peace, the world and hence commodity backed currencies will prosper, and if there is war, the US dollar will prosper.
If the Fed ELECTRONICALLY loans money to the banks at 0% and then sell them treasuries at 2.5% how can the banks lose, and how can you have a failed auction?
If the Fed ELECTRONICALLY loans money to the banks at 0% and then sell them treasuries at 2.5% how can the banks lose, and how can you have a failed auction?
Even the computer doesn't want to buy any more junk paper?
Q: Are You Printing Money? Bernanke: Not Literally
<< <i>Regarding hyperinflation and TIPS - anyone holding TIPS during hyperinflation will be in for a rude surprise - the IRS taxes unrealized gains on TIPS. So, if the principal on the bond rachets up by 10000 %, you will need to find cash to pay taxes on this supposed "gain"! >>
The TIPS we have are held in one of our retirement accounts to avoid that problem.
American Numismatic Association Governor 2023 to 2025 - My posts reflect my own thoughts and are not those of the ANA.My Numismatics with Kenny Twitter Page
That's just it. An auction in the US can't technically fail as long as these two options are available: 1) increase yield offered 2) monetization.
Only one of these options are available to European countries, as I understand it.
That's why I'm of the impression that either the Euro will collapse or a large European company will default on their debt... and this will be the event that starts the biggest worldwide economic crisis ever seen...
Sovereign bonds yield an average 2.385 percent, about the same as a year ago and below the average of 3.08 percent in 2008, when the credit market seizure led investors to seek the safety of government debt, according to Bank of America Merrill Lynch index data. The cost to borrow is steady even though the amount of bonds in the index that includes nations from the U.S. to the Germany and Japan has grown to $17.4 trillion from $13.4 trillion two years ago.
The U.S. paid $383.4 billion in interest on its debt in fiscal 2009 ended Sept. 30, down from $451.2 billion in the previous year, according to the Treasury Department. That represented 3.2 percent of gross domestic product, down from 4.6 percent a decade earlier, when Bill Clinton was president and the U.S. had a budget surplus.
Demand for U.S. government bonds is increasing. On average, the Treasury received $3.21 in bids for each dollar sold at 10- year auctions this year, compared with $2.63 in 2009 and $2.41 from 2004 through 2008, according to data compiled by Bloomberg
Besides taxpayers, the biggest beneficiaries of low borrowing cost are companies. The average corporate bond yields 3.93 percent, down from 6.68 percent a year earlier, according to Bank of America Merrill Lynch Indexes. The drop represents annual interest savings of $27.5 million for every $1 billion borrowed
Sovereign bonds are also benefitting from diminished supply following the seizure in credit markets. While U.S. government debt outstanding has risen $1.444 trillion since 2008 to $7.68 trillion, private sector debt fell $1.86 trillion to $40.186 trillion, according to UBS Securities
Thoughts on the Dodd bill with serious implications for the US and the rest of the world. What is going on?!
.....GOD
"Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you." -Luke 11:9
"Hear, O Israel: The LORD our God is one LORD: And thou shalt love the LORD thy God with all thine heart, and with all thy soul, and with all thy might." -Deut. 6:4-5
"For the LORD is our judge, the LORD is our lawgiver, the LORD is our king; He will save us." -Isaiah 33:22
that link contains pages of constant rambling.........
I got tired reading the first few paragraphs......
and somewhere down the page it mentions arrests....arrests at a company I am familiar with......funny, i never heard of anything like that - and i'm sure that would have made it around the office water cooler.......come'on at least speak some truth?
So it looks like Greece will be bailed out now. They are the canary in the coal mine. These Socialist Governments can not be sustained in the long run.
Wonder what effect this will have on gold and the markets on Mon.? On one hand, it's good that their addressing the problem, on the other hand, it's a sign that things are not good.
We as taxpayers are also bailing out Greece in the tune of $30 Billion-our contribution to the IMF. Some senators in congress are trying to stop this. The norm will be an economy based on debt and unemployment will always be 10%, you will never see 5% unemployment. JMHO
$500 billions from EU and $250 billions from IMF for Greece. Nifty policy-making, isn't it? European stocks up sharply. Dow Futures are indicated 400 pts up before the open. Gold down 17 pts. Silver and platinum up, platinum strongly up.
On CNBC, they are in a snit because nobody still understands how last week's 1000 pt drop in the Dow happened or who is gonna take it in the shorts because of it. It appears that the firms whose rogue computers went beserk will be "protected" from losses by the SEC and that people who acted in response to the rogue trading will be creamed.
I see all of this as very gold positive, even though it is down. Does that make any sense at all?
The way I see it - Sinclair continues to be correct, quantitative easing is the collective governments' only way out and that's what they are doing. And then there are the blatant corruption issues (now euphemistically called "moral hazard" - what a joke!) within the markets.
* Correction, $billions, not $millions
Q: Are You Printing Money? Bernanke: Not Literally
I just read this brilliant essay and must say I'm quite impressed with the author's knowledge and suggestions. In fact, I have never read about some of the concepts he mentions, and am still a bit perplexed as to the mechanics of some of his suggestions. I will have to re-read it and try to digest it all. Thank you, sir for a brilliant and thought-provoking article!
.....GOD
"Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you." -Luke 11:9
"Hear, O Israel: The LORD our God is one LORD: And thou shalt love the LORD thy God with all thine heart, and with all thy soul, and with all thy might." -Deut. 6:4-5
"For the LORD is our judge, the LORD is our lawgiver, the LORD is our king; He will save us." -Isaiah 33:22
Dr. Fekete writes some very challenging articles. I've been reading him for the past 5 years or so. Most of the time I cannot quite fully understand his analysis. In this case, most of what he says on real bills and gold makes reasonable sense. Same basic stuff he has espoused for years. Katz says a similar thing concerning retirement income or as Fekete calls it, the indirect transference of wealth to income via gold. Katz stated that on a gold standard a person was able to slowly save gold over their lifetime and retire on it....assuming a legitimate and approximate 5% nominal "real" interest rate. But with the manipulation of interest & discount rates plus insipient inflation that is no longer possible. Everyman must now step up and play in the rigged casino game of Wall Street investments in order to preserve what wealth they have earned. It's no secret that nations that followed a gold standard with real bill clearance accumulated vast wealth during their peak periods (Rome, Spain, France, England, US). Once an effective gold standard was shelved so was the wealth.
In a feat that would seem to defy the odds, Goldman Sachs, JPMorgan Chase and Bank of America this week each said its trading desk made money every day of the first quarter. Goldman said its daily net trading revenue topped $100 million 35 times last quarter out of 63 trading days. JPMorgan and Bank of America disclosed similar eye-popping stats. Citigroup, too, recorded a profit on each trading day, Bloomberg News reported, citing unnamed people who knew the results.
Way to go banksters, a perfect 1st quarter of trading! GS made over 70% of it's profits by trading this quarter. Now that's some commercial bank! J6P never had a chance as he was the mark.
In the same vein as the above the following is an article by Graham Summers that should replace all college ECON 101 courses. In 10 minutes the students would be far better off and much more knowledgeable on the economy.
Obviously, the only way to survive in the stock market is with a very fast computer and a trading program that runs in fractions of a nanosecond. If I had my retirement money in a company 401K that was fully-vested in the market right now, I'd be more than a little bit concerned.
Q: Are You Printing Money? Bernanke: Not Literally
RR, interesting point. I was thinking the other day that even if I stumbled into $1 or $2M tomorrow, it wouldn't be enough to park it somewhere "safe" and live on ~5% interest for the next 40 years. Sure it'd work for a while, but in about 20 years it probably wouldn't be enough because of inflation. But then maybe at that point you could start using up the principal too, but that's risk since you don't know how long you're going to live...
When these vampires finish sucking the last droips of blood out of the corpse they'll be standing there trying to put together a new currency and new way of doing business so they can leech off of that one too.
Half the people will get mad and vote for democrats and half the people will get mad and vote for republicans. Either way we lose and the bank- ers with their political friends win.
They loan money at 10% and pay 1%. I wonder how they can stay in business without swindling investors with derivatives and manipulating all the markets.
According to ZeroHedge/Reuters, a smaller brokerage firm (Wadell-Reed) dumped a sell order of 75,000 S&P E-mini contracts (50X leverage) onto Barclays...who then proceeded to post the order all at once...and dumped it within 20 minutes. Almost 900,000 E-mini contracts traded during that 20 minute period. Considering all the bank/hedge fund super computers knew this order was in the hopper, their computers went along for the ride transfering $1 TRILL in wealth to the PTB. Of course that's assuming that this information is factual.
According to ZeroHedge/Reuters, a smaller brokerage firm (Wadell-Reed) dumped a sell order of 75,000 S&P E-mini contracts (50X leverage) onto Barclays...who then proceeded to post the order all at once...and dumped it within 20 minutes. Almost 900,000 E-mini contracts traded during that 20 minute period. Considering all the bank/hedge fund super computers knew this order was in the hopper, their computers went along for the ride transfering $1 TRILL in wealth to the PTB. Of course that's assuming that this information is factual.
roadrunner >>
Well, even though the article begs for the "big boys" to be found culpable, it really is a shame to watch the execution squad go after a true little guy...and the point of only $400M or so of value for the trade is indeed very frightening from a true liquidity standpoint. On a "normal" day, aren't there something like $3B or $4B trading hands every hour on the NASDAQ alone?
Very interesting...sure wouldn't want to be in Kansas anymore...
The "flash crash" sounds and looks impressive, but the fact is very little trading took place at those low prices. There was very little selling or buying. No huge amounts of money were made or lost by indivual investors. Did some people get taken out of their AAPL stock at $200, yes but lets put in perspective. In the minute that AAPL traded to $199, the range was $199 to 222. 570,000 shares traded during that minute. So at an average price of $210 thats $119 million. To expand on this, AAPL traded under $235 for all of 5 minutes during which just over 2 million shares traded. During the entire day 60 million shares traded at an average price of about $245, or nearly $15 billion in total dollar volume.
Nobody got rich on this event. Some individuals sold stock low and some bought low. In the end it was a wash.
This was a very unfortunate confluence of events that hurts the confidence of the market and thats not good. A flaw in the system has been identified and can now be fixed. The markets going forward will be stronger as a result.
Comments
<< <i>I see the dollar is already down .81...and silver's only moved about .14, gold around $5...with that big a move in the dollar, I would expect a huge (+5% or more) in PMs. Tomorrow will be interesting >>
The Euro and Sterling are up big against the dollar the balance of currencies are flat. Remember, gold was advancing while the Euro was weakening due primarily to the "greek tradegy" and the flight to gold as an alt currency. Now that greek situation seems to be playing itself out and some questions are being answered both the dollar and gold are being sold and the Euro being bought. Obviously the dollar is being pounded and gold is rather flat ( but as you said it really should be up more in a "normal situation)) . Yes, tomorrow will be interesting and all this could change in a heartbeat. If there is a greek resolution I would expect the dollar and gold to both be hit with the dollar taking the biggest lumps......If gold doesn't take a hit I can see it stalling here under these conditions. MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
Dylan Ratigan MSNBC exposes Federal Reserve Con - Part 2
And this...
The story is breaking out, and you can help GATA spread it
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
I wonder how many Poles will be involved in the crash investigation. They are saying "pilot error". Based on initial reports, this crash is notably similar to the crash that killed Clinton's Secretary of Agriculture, Ron Brown in 1993 as documented in the book, "Ron Brown's Body". A fascinating read if you have the inclination.
I guess that the only way to know if Russia is somehow involved is to see what happens and whether or not Russia moves in on Poland in any way. God knows, the USA hasn't been much comfort to the Poles recently.
The price of gold will reflect more and more geopolitical concerns as this story develops.
I knew it would happen.
Groucho Marx
Text
"Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you." -Luke 11:9
"Hear, O Israel: The LORD our God is one LORD: And thou shalt love the LORD thy God with all thine heart, and with all thy soul, and with all thy might." -Deut. 6:4-5
"For the LORD is our judge, the LORD is our lawgiver, the LORD is our king; He will save us." -Isaiah 33:22
<< <i>Doesn't look like heavy fog to me. This was filmed by a Polish eye-witness (there were many Poles in the area for the ceremony) who happened upon the scene even before the investigators got there. By his comments, he didn't even know it was a Polish plane till he saw the tail marking.
Text
My sources tell me the same thing. MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
and that is NOT smoke
http://www.accuweather.com/video/62514167001/polish-air-disaster-fog-is-number-one-suspect.asp
regards
Kip
<< <i>Looks like fog to me. I flew many years with NASA. I checked Accu-Weather
and that is NOT smoke
http://www.accuweather.com/video/62514167001/polish-air-disaster-fog-is-number-one-suspect.asp
regards
Kip >>
Of course it's fog! But visibility is over a mile. That to me does not qualify as "heavy" fog. Maybe I'm just a layman.
"Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you." -Luke 11:9
"Hear, O Israel: The LORD our God is one LORD: And thou shalt love the LORD thy God with all thine heart, and with all thy soul, and with all thy might." -Deut. 6:4-5
"For the LORD is our judge, the LORD is our lawgiver, the LORD is our king; He will save us." -Isaiah 33:22
Kip
"Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you." -Luke 11:9
"Hear, O Israel: The LORD our God is one LORD: And thou shalt love the LORD thy God with all thine heart, and with all thy soul, and with all thy might." -Deut. 6:4-5
"For the LORD is our judge, the LORD is our lawgiver, the LORD is our king; He will save us." -Isaiah 33:22
Just what are they up to now?
I hunted around a bit at the FED's FRED2 site and couldn't find anything else to link the $421 BILL to. It doesn't show up in money aggregates for example. Other than the financial crisis during the 4th qtr of 2008 there have been no other 1 week spikes in loans/leases to the tune of $400 BILL....until this one at the end of March. If you don't want to flag "liquidity" injections, just do them through some means other than M1 and M2. Denninger had a similar story to this one stating that this was enough money to bail out the whole EU, never mind just Greece. If the AIG or Lehman "back doors" are not available.....there are other alternatives.
FED TOTLL 37 year chart
roadrunner
<< <i>That's an interesting factoid PC.......$421 BILL bump in total commerical bank loans and leases (TOTLL chart at the ST Louis Fed's FRED2 data package). Note that since the peak of the financial crisis at the end of 2008, total bank loans and leases have been falling off at a pretty decent clip. But this amount gets it back to where it was before the fall 2008 crisis.
I hunted around a bit at the FED's FRED2 site and couldn't find anything else to link the $421 BILL to. It doesn't show up in money aggregates for example. Other than the financial crisis during the 4th qtr of 2008 there have been no other 1 week spikes in loans/leases to the tune of $400 BILL....until this one at the end of March. If you don't want to flag "liquidity" injections, just do them through some means other than M1 and M2. Denninger had a similar story to this one stating that this was enough money to bail out the whole EU, never mind just Greece. If the AIG or Lehman "back doors" are not available.....there are other alternatives.
FED TOTLL 37 year chart
roadrunner >>
This is a good article on this subject:
Linky
Excerpt:
Thanks to a poster at The Tree of Liberty named SW Oregon Dave, he pointed me to the H.8 release from the Fed from 4:15 P.M. on April 9th which had this notation at the top:
Linky_Fed
As of the week ending March 31, 2010, domestically chartered banks and foreign-related institutions had consolidated onto their balance sheets the following assets and liabilities of off-balance-sheet vehicles owing to the adoption of FASB’s Financial Accounting Statements No. 166 (FAS 166), Accounting for Transfers of Financial Assets, and No. 167 (FAS 167), Amendments to FASB Interpretation No. 46(R). Domestically chartered commercial banks consolidated $377.8 billion in assets and liabilities. The major asset items affected were: other securities, mortgage-backed securities, -$5.6; other securities, non-MBS, -$15.9; commercial and industrial loans, $32.3; real estate loans, revolving home equity loans, $5.8; real estate loans, closed-end residential loans, $21.5; real estate loans, commercial real estate loans, $1.2; consumer loans, credit cards and other revolving plans, $323.9; consumer loans, other consumer loans, $41.3; other loans and leases, $8.3; allowance for loan and lease losses, $36.4; cash assets, $2.4; trading assets, other trading assets, -$1.7; and other asset items, $0.7. The major liability items affected were: deposits, large time deposits, $2.7; borrowings, borrowings from banks in the U.S., $4.4; borrowings, borrowings from others, $391.6; and other liability items, $5.1. The residual (assets less liabilities) decreased $25.9. The major memoranda items affected were: securitized credit cards and other revolving plans, -$351.3; other securitized consumer loans, -$23.3; and securitized real estate loans, -$25.7. Foreign-related institutions consolidated $20.7 billion in assets and liabilities. The major asset items affected were: other securities, non-MBS, $1.1; commercial and industrial loans, $0.7; and other loans and leases, $18.9. The major liability items affected were: deposits, other deposits, $0.5; borrowings, borrowings from others, $21.0; net due to related foreign offices, -$12.0; and other liabilities, $11.2. The major memoranda items affected were: securitized credit cards and other revolving plans, $7.3.
From this data and the tables which follow, the banksters were able to move, thanks to the FASB revisions $360.6 billion worth of liabilities off of their balance sheets and now declared as “assets” on a seasonally adjusted basis totaled $400.3 billion which is a reasonable increase and accounts for the rapid expansion in the loans and credit considering the graphs above. I do not think the United States is engaged in a back door bailout of Greece at this point in time, however, any increase in the flow of funds from the U.S. Treasury to the IMF might be the red flag we are looking for to assume we are engaged in assisting the European Union in their bailout.
securities.
Its about time. But accusing and prosecuting are not the same. I would like to see them give back the $10 Billion they took from U.S. Taxpayers(not directly but through AIG) to pay their hefty bonuses.
Box of 20
What ever is unwinding on the US investment banking scene, we pm holders have a front row seat. Everyone knows that there is opportunity in chaos and we noted a year or so ago that we were entering a period where unstructured, random events would shape the evolution of our boomer model into whatever is to come next.
Are we getting closer to a banking holiday or maybe even something more dramatic like revaluing the currency or will it just be that we get bent over for a VAT?
What is to become the disclosure of who is linked to whom in the GS investments, will they really go after them, these captains nay, generals of industry?
We have a bread crumb trail thought the deep dark forest in the form of the trail of GS dollars, will congress really follow the trail where ever it leads?
Can the institution funds stay in the shadow game by investing the assets of contributors into these firms that deal in dark arts?
Is this the beginning of some congressional do-over for our investment banking laws, do they really have the balls to go after GS, AIG, and the uber class of world directors?
Will they get the money from these banksters and give it back to the taxpayers where it came from or will they keep the money and hit us with a VAT anyway?
Shadow Stats hyper-inflation 2010
Who paid the bonuses for Wall Street and how it worked:
1. FASB capitulates and allows holders of OTC derivatives to value them at whatever they wish.
2. International investment firms begin strong mark up policies towards their crap inventory.
3. Profits from the mark up of crap OTC derivatives by the international investment firms is recognized as trading income.
4. Tarp money comes into the firms and goes out as bonuses to the management, trading department and general employees at obscene levels.
5. Stock and bond issues are made to pay back tarp funds.
6. Therefore the money bonuses out by the international investment firms were TARP funds, not real earnings, but false FASB permitted mark up paper earnings through the trading department and declared as trading income.
7. The TARP money was paid back through the issue of stocks and bonds to the public, therefore the public paid the TARP back, not the financial institutions.
8. The obscene level of bonuses is because this game of convert false paper profit into cash into the bank account of the banksters and their merry crew is now game over. It was the last dip at the well of public funds laundered via TARP of the caved in FASB.
9. In the final analysis the public paid those obscene bonuses that were in truth, unearned.
roadrunner
..........the world might still find the U.S. the best place to stash its cash as it has second thoughts about the euro being a viable rival to the dollar.
Knowledge is the enemy of fear
I could see that such an event would lead to a flood of capital leaving the Euro and flooding into all kinds of alternatives, including the dollar and dollar-based assets. But how intertwined is the US and the EU financially? The collapse of the EU would probably not be good for the US either.
I wonder what kind of contingency plan there is or might be if the Euro collapses? We might see a flood of demand for PM's from Europe.
Such a scenario would see gold and the USD gaining in value together.
Very possibly. I am of the belief that a large part of the weakness in the dollar since 2001 was diversification from the dollar. For the first time, the dollar had a "supposed" equal and countries sought to diversify their forex holdings. Now they are realizing that the EU is not as strong as the USA, but still want to maintain diversity. So since commodities are strong, they seek currencies that benefit like the Cando and Aussie. Gold is also being seen as an alternate currency. This is probably all natural and healthy. This diversification is probably more "correct" for as long as there is peace, the world and hence commodity backed currencies will prosper, and if there is war, the US dollar will prosper.
Knowledge is the enemy of fear
How can any auction fail?
If the Fed ELECTRONICALLY loans money to the banks at 0% and then sell them treasuries at 2.5% how can the banks lose, and how can you have a failed auction?
http://www.cnbc.com/id/36711527LINK
If the Fed ELECTRONICALLY loans money to the banks at 0% and then sell them treasuries at 2.5% how can the banks lose, and how can you have a failed auction?
Even the computer doesn't want to buy any more junk paper?
I knew it would happen.
<< <i>Regarding hyperinflation and TIPS - anyone holding TIPS during hyperinflation will be in for a rude surprise - the IRS taxes unrealized gains on TIPS. So, if the principal on the bond rachets up by 10000 %, you will need to find cash to pay taxes on this supposed "gain"! >>
The TIPS we have are held in one of our retirement accounts to avoid that problem.
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Only one of these options are available to European countries, as I understand it.
That's why I'm of the impression that either the Euro will collapse or a large European company will default on their debt... and this will be the event that starts the biggest worldwide economic crisis ever seen...
Bond Traders Declare Inflation Dead as Yields Below 2008 Levels
Sovereign bonds yield an average 2.385 percent, about the same as a year ago and below the average of 3.08 percent in 2008, when the credit market seizure led investors to seek the safety of government debt, according to Bank of America Merrill Lynch index data. The cost to borrow is steady even though the amount of bonds in the index that includes nations from the U.S. to the Germany and Japan has grown to $17.4 trillion from $13.4 trillion two years ago.
The U.S. paid $383.4 billion in interest on its debt in fiscal 2009 ended Sept. 30, down from $451.2 billion in the previous year, according to the Treasury Department. That represented 3.2 percent of gross domestic product, down from 4.6 percent a decade earlier, when Bill Clinton was president and the U.S. had a budget surplus.
Demand for U.S. government bonds is increasing. On average, the Treasury received $3.21 in bids for each dollar sold at 10- year auctions this year, compared with $2.63 in 2009 and $2.41 from 2004 through 2008, according to data compiled by Bloomberg
Besides taxpayers, the biggest beneficiaries of low borrowing cost are companies. The average corporate bond yields 3.93 percent, down from 6.68 percent a year earlier, according to Bank of America Merrill Lynch Indexes. The drop represents annual interest savings of $27.5 million for every $1 billion borrowed
Sovereign bonds are also benefitting from diminished supply following the seizure in credit markets. While U.S. government debt outstanding has risen $1.444 trillion since 2008 to $7.68 trillion, private sector debt fell $1.86 trillion to $40.186 trillion, according to UBS Securities
Knowledge is the enemy of fear
I also saw an interesting exchange on CNBC that the national debt is not a problem.
It's getting "frothy" out there.
"Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you." -Luke 11:9
"Hear, O Israel: The LORD our God is one LORD: And thou shalt love the LORD thy God with all thine heart, and with all thy soul, and with all thy might." -Deut. 6:4-5
"For the LORD is our judge, the LORD is our lawgiver, the LORD is our king; He will save us." -Isaiah 33:22
<< <i>Thoughts on the Dodd bill with serious implications for the US and the rest of the world. What is going on?!
It took a while to get through. Downright sickening. Who are the authors? What's there agenda?
<< <i>
<< <i>Thoughts on the Dodd bill with serious implications for the US and the rest of the world. What is going on?!
It took a while to get through. Downright sickening. Who are the authors? What's there agenda? >>
I read a few paragraphs then stopped. There be some crazy people out there.
Knowledge is the enemy of fear
I got tired reading the first few paragraphs......
and somewhere down the page it mentions arrests....arrests at a company I am familiar with......funny, i never heard of anything like that - and i'm sure that would have made it around the office water cooler.......come'on at least speak some truth?
how can anyone take it seriously
Box of 20
Euro set up rescue fund for euro-zone members
Wonder what effect this will have on gold and the markets on Mon.? On one hand, it's good that their addressing the problem, on the other hand, it's a sign that things are not good.
Box of 20
On CNBC, they are in a snit because nobody still understands how last week's 1000 pt drop in the Dow happened or who is gonna take it in the shorts because of it. It appears that the firms whose rogue computers went beserk will be "protected" from losses by the SEC and that people who acted in response to the rogue trading will be creamed.
I see all of this as very gold positive, even though it is down. Does that make any sense at all?
The way I see it - Sinclair continues to be correct, quantitative easing is the collective governments' only way out and that's what they are doing. And then there are the blatant corruption issues (now euphemistically called "moral hazard" - what a joke!) within the markets.
* Correction, $billions, not $millions
I knew it would happen.
"Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you." -Luke 11:9
"Hear, O Israel: The LORD our God is one LORD: And thou shalt love the LORD thy God with all thine heart, and with all thy soul, and with all thy might." -Deut. 6:4-5
"For the LORD is our judge, the LORD is our lawgiver, the LORD is our king; He will save us." -Isaiah 33:22
In a feat that would seem to defy the odds, Goldman Sachs, JPMorgan Chase and Bank of America this week each said its trading desk made money every day of the first quarter. Goldman said its daily net trading revenue topped $100 million 35 times last quarter out of 63 trading days. JPMorgan and Bank of America disclosed similar eye-popping stats. Citigroup, too, recorded a profit on each trading day, Bloomberg News reported, citing unnamed people who knew the results.
Way to go banksters, a perfect 1st quarter of trading! GS made over 70% of it's profits by trading this quarter. Now that's some commercial bank! J6P never had a chance as he was the mark.
In the same vein as the above the following is an article by Graham Summers that should replace all college ECON 101 courses. In 10 minutes the students would be far better off and much more knowledgeable on the economy.
The only 5 things that count concerning the financial system
roadrunner
I knew it would happen.
<< <i>
The only 5 things that count concerning the financial system
>>
This looks about right.
When these vampires finish sucking the last droips of blood out of the
corpse they'll be standing there trying to put together a new currency
and new way of doing business so they can leech off of that one too.
Half the people will get mad and vote for democrats and half the people
will get mad and vote for republicans. Either way we lose and the bank-
ers with their political friends win.
They loan money at 10% and pay 1%. I wonder how they can stay in
business without swindling investors with derivatives and manipulating
all the markets.
According to ZeroHedge/Reuters, a smaller brokerage firm (Wadell-Reed) dumped a sell order of 75,000 S&P E-mini contracts (50X leverage) onto Barclays...who then proceeded to post the order all at once...and dumped it within 20 minutes. Almost 900,000 E-mini contracts traded during that 20 minute period. Considering all the bank/hedge fund super computers knew this order was in the hopper, their computers went along for the ride transfering $1 TRILL in wealth to the PTB. Of course that's assuming that this information is factual.
roadrunner
<< <i>Cause of the 1,000 pt drop last week
According to ZeroHedge/Reuters, a smaller brokerage firm (Wadell-Reed) dumped a sell order of 75,000 S&P E-mini contracts (50X leverage) onto Barclays...who then proceeded to post the order all at once...and dumped it within 20 minutes. Almost 900,000 E-mini contracts traded during that 20 minute period. Considering all the bank/hedge fund super computers knew this order was in the hopper, their computers went along for the ride transfering $1 TRILL in wealth to the PTB. Of course that's assuming that this information is factual.
roadrunner >>
Well, even though the article begs for the "big boys" to be found culpable, it really is a shame to watch the execution squad go after a true little guy...and the point of only $400M or so of value for the trade is indeed very frightening from a true liquidity standpoint. On a "normal" day, aren't there something like $3B or $4B trading hands every hour on the NASDAQ alone?
Very interesting...sure wouldn't want to be in Kansas anymore...
Nobody got rich on this event. Some individuals sold stock low and some bought low. In the end it was a wash.
This was a very unfortunate confluence of events that hurts the confidence of the market and thats not good. A flaw in the system has been identified and can now be fixed. The markets going forward will be stronger as a result.
Knowledge is the enemy of fear