<< <i>Assuming a 10x leverage ratio, does that mean there could be losses of over $3 trillion? >>
"could be" losses? I think the losses have already happened, it's just a matter of when the banks are going to recognize them. >>
Actually I think global losses could be closer to 10x this amount. Global debt (individual, corporate, municipal, govt) is about 350% of global GDP. We gots lots more debts to destroy.
I wonder if we just nationalized the fed and had more control over that $16 Trillion the fed handed out over the past few years. Let all the banks fail to clean out the system or would there be just too much collateral damage to the economy.
Good report. Dave..............Slight Depression. That's catchy. I'm using it. 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......
So we've encountered these "problems" before? If so, then I think we responded well in the past and i'm sure will again. People have been betting against America for over 200 years. Most of them are now dead, yet America still lives. And she will live, long after you and I are both gone.
Yep, the American Communists, the American Nazis, Chavez from Vene, Amadena from Iran, the Chinese, The Very Most Reverend Al Sharp (Where's his runnin' buddy JJ?); all rooting for a collapse. That should be a clue to the OWS crowd...they are ALL rooting for you. Hey, anyone out there know how to say Ni Hao (oh yeah, you're supposed to bow from the waist, haven't you been watching the news)?. Ha! Pound sand heathens. Gold is good.
On a related note, there are cash 4 gold shops opening up in the malls here now along with the three full page Sunday newspaper ads for hotel gold. Surely, after a year of this they would have vacuumed up most of the stuff...how much more can there be in the jewelry boxes? This will be interesting after all the incidental metal is harvested and the only ones holding will be the hard core. Good luck out there.
I see the unions have joined also. Unions and most of their members suck. They are all anti-American, most over paid, lazy and greedy. I am surprised there are no drive-by's on picket lines with the economy the way it is. I hope that never happens They will pimp their own wives and daughters if the pay is union scale
<< <i>I see the unions have joined also. Unions and most of their members suck. They are all anti-American, most over paid, lazy and greedy. I am surprised there are no drive-by's on picket lines with the economy the way it is. I hope that never happens They will pimp their own wives and daughters if the pay is union scale >>
The communist party of usa has joined as has the nazi party ( I didn't know it existed till now )
A friend of mine always said when the shtf the people here will be out in the streets looking for MORE government not less.
He was right obviously. This place is looking more lost everyday.
My issue with Ron Paul is that he never defines what our position in the world should be in terms of military and defense.
The rule of most competition is that "if we don't do it, someone else will". This is paramount in any consideration of military and defense, but Ron Paul doesn't seem to acknowledge the realities of the military threats to our own security that exist everywhere throughout the world. Strategically, it matters whether we back off or stay engaged in most places and those decisions stay with us for a very long time. It's almost impossible to be correct in a longterm strategic decision that lingers while conditions continue to evolve.
Does Russia intend to ever play nice? No. Does China intend to expand it's influence and dominance everywhere they can? Yes. Is Saudi Arabia our friend? No.
Do we make mistakes? Yes. Big ones? Yes. But don't equate our mistakes with Russia's constant stirring, China's ultimate plans or the desire of muslims for the world caliphate. They don't equate.
Our military involvement has generally been intertwined with our business interests. Note, that we don't just go in and take a country's resources. In every case (that I can remember) we've gone into a country for trade and eventually brought in our military, it was to protect an interest that we initially made a business deal for. It's the locals that break their agreements and begin taking our property and threatening our business installations. Typically, it's been about oil. In every case, the host country gets rich on the deals that our companies have made.
We aren't responsible for how they treat their women in Kuwait or Saudi, and we don't interfere with their local cultures. Does Ron Paul ever acknowledge any of that? Not that I can remember. There's nowhere to hide in this world. It's been that way for a very long time. If half the stuff that we get accused of were true, then there might be some legitimacy to Ron Paul's new campaign video. Unfortunately, it's never that simple.
He's right about money though, and his integrity would go a long ways in any administration that wanted to draft him into a cabinet job. And yet, as much as capitalism would be the best system for promoting worldwide welfare, it doesn't really exist and probably never will again, except in small localized pockets. It's just impossible to get everyone playing by the same set of rules, and that's not likely to change - ever.
JMHO. Flame away!
Q: Are You Printing Money? Bernanke: Not Literally
Then just keep following the same path you've been following. No need for change. Everything is fine and as far as the millions we have killed around the world, well, its just collateral damage. Only Americans are people after all.
Everyone talks about the "good old days". Well, if Paul were elected, we would all know what that means, as the sudden unwinding of the last 80 years would put us back in the early 1900's.
Paul, and those who support him, seem like good and decent people. But he and they have no idea the consequences of their "solutions".
The only solution is TIME. Any rush on that WILL result in catastrophic damage. WWII would be but a mere footnote in human history.
Paul reminds of me of Lew Aryes. Lew Ayres portrayed the misguided President Adar in the Original Series the president of the colonies in the old Battlestar Galactica series. He meant well but then the Cylons destroyed humankind. I am only referring to Paul's vague stand on Defense.
<< <i>Everyone talks about the "good old days". Well, if Paul were elected, we would all know what that means, as the sudden unwinding of the last 80 years would put us back in the early 1900's.
Paul, and those who support him, seem like good and decent people. But he and they have no idea the consequences of their "solutions".
The only solution is TIME. Any rush on that WILL result in catastrophic damage. WWII would be but a mere footnote in human history. >>
Pm replied to. Please do not pm me again. Thanks! >>
mrearlygold, if you have something to say to Precious Metals forum members, I suggest you say it here and not on Kitco. I assume this is your post:
The Stupid Things About Ron Paul Thread
-------------------------------------------------------------------------------- Here's one from an unamed moron from a different message board:
Everyone talks about the "good old days". Well, if Paul were elected, we would all know what that means, as the sudden unwinding of the last 80 years would put us back in the early 1900's.
Paul, and those who support him, seem like good and decent people. But he and they have no idea the consequences of their "solutions".
The only solution is TIME. Any rush on that WILL result in catastrophic damage. WWII would be but a mere footnote in human history.
Any comments? Anyone else like to publish stupid statements about Ron Paul?
We should not underestimate the government and the influence they can have.
Politicians need short terms successes as there are always elections and we like winners and can do leaders.
While the bank's bailouts have proven to be extremely unpopular, the politicians tried a new things such as the 4000 dollars trade in for cars and the 8000 dollars for buying a house programs thats were wildly popular.
Its hard to disagree with Codhock as he always seems to make sense from a logical standpoint and reality is always unavoidable....but that doesnt mean it can't postponed ...or that at least they wont try and make things even worse.
I remember in Cuba when Fidel Castro tried to make the first 10 million tons of sugar in one year, the agriculture minister told him it was impossible and that the damage would catastrophic by even trying ....they went ahead regardless and managed to reach around 7 million or so. however the damage to the sugar cane fields was so bad that the next season they barely managed a little above 1 million tons.
Fidel Castro of course fired the minister for his failure to properly persuade him against his own insane idea.
"Women should be obscene and not heard. " Groucho Marx
Then just keep following the same path you've been following. No need for change. Everything is fine and as far as the millions we have killed around the world, well, its just collateral damage. Only Americans are people after all.
Inflamatory statements like this one should always be challenged.
Q: Are You Printing Money? Bernanke: Not Literally
Bank of America Corp. (BAC), hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits, according to people with direct knowledge of the situation.
The Federal Reserve and Federal Deposit Insurance Corp. disagree over the transfers, which are being requested by counterparties, said the people, who asked to remain anonymous because they weren’t authorized to speak publicly. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting, said the people. The bank doesn’t believe regulatory approval is needed, said people with knowledge of its position.
Three years after taxpayers rescued some of the biggest U.S. lenders, regulators are grappling with how to protect FDIC- insured bank accounts from risks generated by investment-banking operations. Bank of America, which got a $45 billion bailout during the financial crisis, had $1.04 trillion in deposits as of midyear, ranking it second among U.S. firms.
“The concern is that there is always an enormous temptation to dump the losers on the insured institution,” said William Black, professor of economics and law at the University of Missouri-Kansas City and a former bank regulator. “We should have fairly tight restrictions on that.”
BoA has over $50 TRILL in derivatives. It would appear that the 800 lb. gorilla must have woken up from its 3 yr slumber. Solution? Move it to another cage and anesthetize it.
I don't have savings in BOA, though do have my morgtage with them. Dump the problem on taxpayers again. No problem. The Fed (privately owned) will give BOA their blessing on the dumping on the FDIC (publicly owned). Blatant corruption. If this is not financial terrorism and a direct threat to the sovereignty of our nation, I don't know what is.
Bank of America, which got a $45 billion bailout during the financial crisis, had $1.04 trillion in deposits as of midyear, ranking it second among U.S. firms
And this action will not have the effect of a run on the bank. Depositors would flee. If this were mainstream news.
<< <i>Bank of America Corp. (BAC), hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits, according to people with direct knowledge of the situation.
The Federal Reserve and Federal Deposit Insurance Corp. disagree over the transfers, which are being requested by counterparties, said the people, who asked to remain anonymous because they weren’t authorized to speak publicly. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting, said the people. The bank doesn’t believe regulatory approval is needed, said people with knowledge of its position.
Three years after taxpayers rescued some of the biggest U.S. lenders, regulators are grappling with how to protect FDIC- insured bank accounts from risks generated by investment-banking operations. Bank of America, which got a $45 billion bailout during the financial crisis, had $1.04 trillion in deposits as of midyear, ranking it second among U.S. firms.
“The concern is that there is always an enormous temptation to dump the losers on the insured institution,” said William Black, professor of economics and law at the University of Missouri-Kansas City and a former bank regulator. “We should have fairly tight restrictions on that.”
BoA has over $50 TRILL in derivatives. It would appear that the 800 lb. gorilla must have woken up from its 3 yr slumber. Solution? Move it to another cage and anesthetize it.
roadrunner >>
In other words the bankers keep gambling with my money and keep the profits when they win and hit me with the losses when they lose and the government is in on it.
Then, if they lose big enough the whole thing comes down and there's n o food in the stores.
I guess that's all fine as long as wall street has their massive profits and the in- terest on everyone's money.
Congress has been beating on the CFTC to come up with something since early this year per Dodd-Frank. Yesterday they came out with this quagmire.
For most commodities about to be delivered, the size of positions will be restricted to 25 per cent of deliverable supply. For contracts with later delivery months - which are typically held by investment funds - limits will be set at 10 per cent of open interest for the first 25,000 contracts, then 2.5 per cent above this level. The CFTC still must gather data on the overall open interest of futures and swaps markets.
First question is what is "deliverable" supply? The amount the CME says it has, or the amount it really has?
For all other contracts (ie metals), the limits will be made effective by Commission order after the collection of one year of interest data. These will be adjusted biennially.
For spot month contracts the limits don't go into effect until 60 days after the CFTC gets around to defining the term "swap." That could be a long time. Months for starters.
Exemptions have been established for hedging operations and positions established in good faith before the initial limits effective date. The rule-making also preserves the independent account controller exemption. The Commission has included a visibility reporting regime in the rules to help it conduct a thorough market surveillance program........this alone might exempt the banksters (ie hedgers)....but for how long?
Seems to me the banksters have gotten another reprieve. And even prior to the limits going into effect they can reload shorts one last time to get them a number of months beyond that point. Anyone playing in the non-spot months has at least a year before anything changes. Any or all of this can be challenged in court which would only delay things further. Worst case is that the big banks might have to spread their pile of shorts among other players. Same number of total contracts, just more bankers. In any case, the banksters have 60-90 days to intitiate yet another big play.
RR (others, too) in Mish's article it concludes with a term "fractional reserve lending" (ending it along with the FED) this sounds pretty draconian when you think of both just going...poof.
Look for the deteriorating european situation to continue causing a surge in the dollar - US$ and US Treasuries will benefit greatly. This will have a continued negative affect on PMs. Stand by for what might possibly be the last buying opportunity in PMs for a while. European crisis is not the stacker's friend until the mask comes off the US$.
<< <i>Look for the deteriorating european situation to continue causing a surge in the dollar - US$ and US Treasuries will benefit greatly. This will have a continued negative affect on PMs. Stand by for what might possibly be the last buying opportunity in PMs for a while. European crisis is not the stacker's friend until the mask comes off the US$. >>
I'm not ready to buy that premise as I don't believe the USD and POG are that closely correlated (any longer). Major price moves earlier this year in gold were not accompanied by significant moves in the USD index, or at least not consistently. I think European and Asian (and even US) demand can offset or buoy the POG even when the USD index is increasing. In the face of chaos, money is flowing into PMs as well as moving from currency to currency.
The question also remains as to how much of the Greek/Euro situation is already priced in, and how the market will react to the pending "solution" that should come out this week?
<< <i>Look for the deteriorating european situation to continue causing a surge in the dollar - US$ and US Treasuries will benefit greatly. This will have a continued negative affect on PMs. Stand by for what might possibly be the last buying opportunity in PMs for a while. European crisis is not the stacker's friend until the mask comes off the US$. >>
I'm not ready to buy that premise as I don't believe the USD and POG are that closely correlated (any longer). Major price moves earlier this year in gold were not accompanied by significant moves in the USD index, or at least not consistently. I think European and Asian (and even US) demand can offset or buoy the POG even when the USD index is increasing. In the face of chaos, money is flowing into PMs as well as moving from currency to currency.
The question also remains as to how much of the Greek/Euro situation is already priced in, and how the market will react to the pending "solution" that should come out this week?
Sunday night here the USD index is falling. >>
It's the 2008 banking crisis all over again. This time its because of bad soverign bond investments instead of real estate. It's gonna take much of europe to the abyss, and eventually spread elsewhere. My belief is the 2009 charts will repeat themselves.
Anyone have comments on this? There is an estimated $1.5 trillion held overseas.
Risk vs. Potential Reward. Businesses have to evaluate decisions like this every day, and the big international businesses have entire tax departments dedicated to making these types of decisions.
There's a reason that money isn't back here.
Q: Are You Printing Money? Bernanke: Not Literally
<< <i>Anyone have comments on this? There is an estimated $1.5 trillion held overseas. >>
A few comments: 1. With interest rates so low, why take the hit and use your own money when the foreign reserves make good collateral? 2. With such a hostile and volatile business environment here, expansion/investment and or acquisition activity is put on hold or greatly subdued. Why repatriate the money until you have a need for it, especially when the next opportunity might be overseas anyway.
I don't think there's a need for any special tax breaks to repatriate the cash. I think we'd get more yardage out of making the domestic business environment friendlier so that companies will want to use the cash here and will have no choice but to bring it back.
I think we'd get more yardage out of making the domestic business environment friendlier so that companies will want to use the cash here and will have no choice but to bring it back.
I agree with you. But that's not what they are doing. Companies aren't stupid - they evaluate and decide, based on risk and return. Apparently, they see some risk.
Q: Are You Printing Money? Bernanke: Not Literally
I look at a potential repatriation from a different viewpoint. If companies were to bring this cash back home, then that means selling of Euro, Cando, Aussie, Pesos, ect and buying of dollars.
<< <i>I look at a potential repatriation from a different viewpoint. If companies were to bring this cash back home, then that means selling of Euro, Cando, Aussie, Pesos, ect and buying of dollars. >>
Who's to say what currency the foreign reserves are held in? I don't know a lot about this but I'm not sure it would be accurate to assume that a good portion of the reserves aren't held in USD.
“Anyone have comments on this? There is an estimated $1.5 trillion held overseas.”
I do not see why any of these wealthy individuals or Corporations would want to bring any of this money back to the U.S. while we have this marching socialism in this country. I have several friends here who have opened accounts in Canada and are ready to wire money in minutes as things get worse here.
The U.S. system is so corrupt now there is very little hope of ever finding a fix.
Here is one example out of millions that are playing out. I know of a young couple in my small town in Texas where a man and women have been living together for several years and have 3 children. They refuse to get married because as a single mom she gets get over $15,000 per year from the federal government in cash. In addition she got a home mortgage where the government pays about half of the mortgage. There are also other bennies, day care, children lunches, medical etc.paid by the state, so maybe the total is over $20,000 per year.
Do you think these situations can ever be reversed?? Why bring all that money back here when these corporations have no intention of hiring more workers here, or investing in new plants and equipment here?
1. This is not a time to be acquiring gold. 2. BAC might be a great speculative play right now. 3. The FED needs to raise rates.
I am also sick to my stomach right now so that could account for any one of those three feelings.[/q
Bac at $2.50 double bottom may be a good buy down the road. The daily looks better than silver right now but the weekly bac don't look to good, significant down trend.
NumbersUsa, FairUs, Alipac, CapsWeb, and TeamAmericaPac
Comments
Assuming a 10x leverage ratio, does that mean there could be losses of over $3 trillion?
http://www.bloomberg.com/news/2011-10-13/revised-eu-stress-test-would-see-66-banks-fail-analysts-say.html
Knowledge is the enemy of fear
<< <i>Assuming a 10x leverage ratio, does that mean there could be losses of over $3 trillion? >>
"could be" losses? I think the losses have already happened, it's just a matter of when the banks are going to recognize them.
<< <i>
<< <i>Assuming a 10x leverage ratio, does that mean there could be losses of over $3 trillion? >>
"could be" losses? I think the losses have already happened, it's just a matter of when the banks are going to recognize them. >>
Actually I think global losses could be closer to 10x this amount. Global debt (individual, corporate, municipal, govt) is about 350% of global GDP. We gots lots more debts to destroy.
Knowledge is the enemy of fear
http://www.hoisingtonmgt.com/pdf/HIM2011Q3NP.pdf
Knowledge is the enemy of fear
Box of 20
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......
100 Year Old Cartoons
You all know who wrote the book on End the Fed , Ron Paul
Any seem appropriate today?
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
So we've encountered these "problems" before? If so, then I think we responded well in the past and i'm sure will again. People have been betting against America for over 200 years. Most of them are now dead, yet America still lives. And she will live, long after you and I are both gone.
Looks like the G-20 will make the market's work easier.
BTW---I do like the cartoons.
Knowledge is the enemy of fear
Communist Party U.S.A. in Solidarity with Occupy
http://libertypulse.com/article/comm...ccupy-chicago/
There's lots more. A "maoist" in california thinks the fed is "not doing enough"!
Yeah, not destroying the country fast enough. I think this is what they mean by not enough .
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
On a related note, there are cash 4 gold shops opening up in the malls here now along with the three full page Sunday newspaper ads for hotel gold. Surely, after a year of this they would have vacuumed up most of the stuff...how much more can there be in the jewelry boxes? This will be interesting after all the incidental metal is harvested and the only ones holding will be the hard core. Good luck out there.
Unions and most of their members suck. They are all anti-American, most over paid, lazy and greedy.
I am surprised there are no drive-by's on picket lines with the economy the way it is.
I hope that never happens
They will pimp their own wives and daughters if the pay is union scale
<< <i>I see the unions have joined also.
Unions and most of their members suck. They are all anti-American, most over paid, lazy and greedy.
I am surprised there are no drive-by's on picket lines with the economy the way it is.
I hope that never happens
They will pimp their own wives and daughters if the pay is union scale >>
The communist party of usa has joined as has the nazi party ( I didn't know it existed till now )
A friend of mine always said when the shtf the people here will be out in the streets looking for MORE government not less.
He was right obviously. This place is looking more lost everyday.
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
And
Text of the plan
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
Box of 20
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
The rule of most competition is that "if we don't do it, someone else will". This is paramount in any consideration of military and defense, but Ron Paul doesn't seem to acknowledge the realities of the military threats to our own security that exist everywhere throughout the world. Strategically, it matters whether we back off or stay engaged in most places and those decisions stay with us for a very long time. It's almost impossible to be correct in a longterm strategic decision that lingers while conditions continue to evolve.
Does Russia intend to ever play nice? No. Does China intend to expand it's influence and dominance everywhere they can? Yes. Is Saudi Arabia our friend? No.
Do we make mistakes? Yes. Big ones? Yes. But don't equate our mistakes with Russia's constant stirring, China's ultimate plans or the desire of muslims for the world caliphate. They don't equate.
Our military involvement has generally been intertwined with our business interests. Note, that we don't just go in and take a country's resources. In every case (that I can remember) we've gone into a country for trade and eventually brought in our military, it was to protect an interest that we initially made a business deal for. It's the locals that break their agreements and begin taking our property and threatening our business installations. Typically, it's been about oil. In every case, the host country gets rich on the deals that our companies have made.
We aren't responsible for how they treat their women in Kuwait or Saudi, and we don't interfere with their local cultures. Does Ron Paul ever acknowledge any of that? Not that I can remember. There's nowhere to hide in this world. It's been that way for a very long time. If half the stuff that we get accused of were true, then there might be some legitimacy to Ron Paul's new campaign video. Unfortunately, it's never that simple.
He's right about money though, and his integrity would go a long ways in any administration that wanted to draft him into a cabinet job. And yet, as much as capitalism would be the best system for promoting worldwide welfare, it doesn't really exist and probably never will again, except in small localized pockets. It's just impossible to get everyone playing by the same set of rules, and that's not likely to change - ever.
JMHO. Flame away!
I knew it would happen.
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
Paul, and those who support him, seem like good and decent people. But he and they have no idea the consequences of their "solutions".
The only solution is TIME. Any rush on that WILL result in catastrophic damage. WWII would be but a mere footnote in human history.
Knowledge is the enemy of fear
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
ADAR
Box of 20
I knew it would happen.
<< <i>PM sent. Thread preserved. >>
Pm replied to. Please do not pm me again. Thanks!
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
<< <i>
<< <i>PM sent. Thread preserved. >>
Pm replied to. Please do not pm me again. Thanks! >>
LOL. This comment and the one above are exactly why I am HIGHLY confident in my prognostication.
Knowledge is the enemy of fear
Pm replied to. Please do not pm me again. Thanks!
Let's go public. How do I put you on ignore? I want to be certain that I don't bother you.
I knew it would happen.
<< <i>Everyone talks about the "good old days". Well, if Paul were elected, we would all know what that means, as the sudden unwinding of the last 80 years would put us back in the early 1900's.
Paul, and those who support him, seem like good and decent people. But he and they have no idea the consequences of their "solutions".
The only solution is TIME. Any rush on that WILL result in catastrophic damage. WWII would be but a mere footnote in human history. >>
<< <i>
<< <i>PM sent. Thread preserved. >>
Pm replied to. Please do not pm me again. Thanks! >>
mrearlygold, if you have something to say to Precious Metals forum members, I suggest you say it here and not on Kitco. I assume this is your post:
The Stupid Things About Ron Paul Thread
--------------------------------------------------------------------------------
Here's one from an unamed moron from a different message board:
Everyone talks about the "good old days". Well, if Paul were elected, we would all know what that means, as the sudden unwinding of the last 80 years would put us back in the early 1900's.
Paul, and those who support him, seem like good and decent people. But he and they have no idea the consequences of their "solutions".
The only solution is TIME. Any rush on that WILL result in catastrophic damage. WWII would be but a mere footnote in human history.
Any comments? Anyone else like to publish stupid statements about Ron Paul?
https://www.pcgs.com/setregistry/gold/liberty-head-2-1-gold-major-sets/liberty-head-2-1-gold-basic-set-circulation-strikes-1840-1907-cac/alltimeset/268163
Tom, you're classic!!!!
Knowledge is the enemy of fear
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
Politicians need short terms successes as there are always elections and we like winners and can do leaders.
While the bank's bailouts have proven to be extremely unpopular, the politicians tried a new things such as the 4000 dollars trade in for cars and the 8000 dollars for buying a house programs thats were wildly popular.
Its hard to disagree with Codhock as he always seems to make sense from a logical standpoint and reality is always unavoidable....but that doesnt mean it can't postponed ...or that at least they wont try and make things even worse.
I remember in Cuba when Fidel Castro tried to make the first 10 million tons of sugar in one year, the agriculture minister told him it was impossible and that the damage would catastrophic by even trying ....they went ahead regardless and managed to reach around 7 million or so. however the damage to the sugar cane fields was so bad that the next season they barely managed a little above 1 million tons.
Fidel Castro of course fired the minister for his failure to properly persuade him against his own insane idea.
Groucho Marx
Inflamatory statements like this one should always be challenged.
I knew it would happen.
The Federal Reserve and Federal Deposit Insurance Corp. disagree over the transfers, which are being requested by counterparties, said the people, who asked to remain anonymous because they weren’t authorized to speak publicly. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting, said the people. The bank doesn’t believe regulatory approval is needed, said people with knowledge of its position.
Three years after taxpayers rescued some of the biggest U.S. lenders, regulators are grappling with how to protect FDIC- insured bank accounts from risks generated by investment-banking operations. Bank of America, which got a $45 billion bailout during the financial crisis, had $1.04 trillion in deposits as of midyear, ranking it second among U.S. firms.
“The concern is that there is always an enormous temptation to dump the losers on the insured institution,” said William Black, professor of economics and law at the University of Missouri-Kansas City and a former bank regulator. “We should have fairly tight restrictions on that.”
link
BoA has over $50 TRILL in derivatives. It would appear that the 800 lb. gorilla must have woken up from its 3 yr slumber. Solution? Move it to another cage and anesthetize it.
roadrunner
Bank of America, which got a $45 billion bailout during the financial crisis, had $1.04 trillion in deposits as of midyear, ranking it second among U.S. firms
And this action will not have the effect of a run on the bank. Depositors would flee. If this were mainstream news.
Box of 20
Knowledge is the enemy of fear
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<< <i>Bank of America Corp. (BAC), hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits, according to people with direct knowledge of the situation.
The Federal Reserve and Federal Deposit Insurance Corp. disagree over the transfers, which are being requested by counterparties, said the people, who asked to remain anonymous because they weren’t authorized to speak publicly. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting, said the people. The bank doesn’t believe regulatory approval is needed, said people with knowledge of its position.
Three years after taxpayers rescued some of the biggest U.S. lenders, regulators are grappling with how to protect FDIC- insured bank accounts from risks generated by investment-banking operations. Bank of America, which got a $45 billion bailout during the financial crisis, had $1.04 trillion in deposits as of midyear, ranking it second among U.S. firms.
“The concern is that there is always an enormous temptation to dump the losers on the insured institution,” said William Black, professor of economics and law at the University of Missouri-Kansas City and a former bank regulator. “We should have fairly tight restrictions on that.”
link
BoA has over $50 TRILL in derivatives. It would appear that the 800 lb. gorilla must have woken up from its 3 yr slumber. Solution? Move it to another cage and anesthetize it.
roadrunner >>
In other words the bankers keep gambling with my money and keep the profits
when they win and hit me with the losses when they lose and the government
is in on it.
Then, if they lose big enough the whole thing comes down and there's n o food
in the stores.
I guess that's all fine as long as wall street has their massive profits and the in-
terest on everyone's money.
It's a great time to own a congressman or two.
Congress has been beating on the CFTC to come up with something since early this year per Dodd-Frank. Yesterday they came out with this quagmire.
For most commodities about to be delivered, the size of positions will be restricted to 25 per cent of deliverable supply. For contracts with later delivery months - which are typically held by investment funds - limits will be set at 10 per cent of open interest for the first 25,000 contracts, then 2.5 per cent above this level. The CFTC still must gather data on the overall open interest of futures and swaps markets.
First question is what is "deliverable" supply? The amount the CME says it has, or the amount it really has?
For all other contracts (ie metals), the limits will be made effective by Commission order after the collection of one year of interest data. These will be adjusted biennially.
For spot month contracts the limits don't go into effect until 60 days after the CFTC gets around to defining the term "swap." That could be a long time. Months for starters.
Exemptions have been established for hedging operations and positions established in good faith before the initial limits effective date. The rule-making also
preserves the independent account controller exemption. The Commission has included a visibility reporting regime in the rules to help it conduct a thorough
market surveillance program........this alone might exempt the banksters (ie hedgers)....but for how long?
Seems to me the banksters have gotten another reprieve. And even prior to the limits going into effect they can reload shorts one last time to get them
a number of months beyond that point. Anyone playing in the non-spot months has at least a year before anything changes. Any or all of this can be challenged in court which
would only delay things further. Worst case is that the big banks might have to spread their pile of shorts among other players. Same number of total contracts, just more bankers.
In any case, the banksters have 60-90 days to intitiate yet another big play.
2nd article - same topic
Mish's view on BoA moving $53 TRILL in derivatives into insured/depositor's accounts
roadrunner
i get the calamity though.
Rampant currency debasement will be the most important investment trend of this decade, and it will devastate most people.
- Nick Giambruno Buy dollar insurance now, because the policy will cost more as the dollar becomes worth less.
<< <i>Look for the deteriorating european situation to continue causing a surge in the dollar - US$ and US Treasuries will benefit greatly. This will have a continued negative affect on PMs. Stand by for what might possibly be the last buying opportunity in PMs for a while. European crisis is not the stacker's friend until the mask comes off the US$. >>
I'm not ready to buy that premise as I don't believe the USD and POG are that closely correlated (any longer). Major price moves earlier this year in gold were not accompanied by significant moves in the USD index, or at least not consistently. I think European and Asian (and even US) demand can offset or buoy the POG even when the USD index is increasing. In the face of chaos, money is flowing into PMs as well as moving from currency to currency.
The question also remains as to how much of the Greek/Euro situation is already priced in, and how the market will react to the pending "solution" that should come out this week?
Sunday night here the USD index is falling.
<< <i>
<< <i>Look for the deteriorating european situation to continue causing a surge in the dollar - US$ and US Treasuries will benefit greatly. This will have a continued negative affect on PMs. Stand by for what might possibly be the last buying opportunity in PMs for a while. European crisis is not the stacker's friend until the mask comes off the US$. >>
I'm not ready to buy that premise as I don't believe the USD and POG are that closely correlated (any longer). Major price moves earlier this year in gold were not accompanied by significant moves in the USD index, or at least not consistently. I think European and Asian (and even US) demand can offset or buoy the POG even when the USD index is increasing. In the face of chaos, money is flowing into PMs as well as moving from currency to currency.
The question also remains as to how much of the Greek/Euro situation is already priced in, and how the market will react to the pending "solution" that should come out this week?
Sunday night here the USD index is falling. >>
It's the 2008 banking crisis all over again. This time its because of bad soverign bond investments instead of real estate. It's gonna take much of europe to the abyss, and eventually spread elsewhere. My belief is the 2009 charts will repeat themselves.
Rampant currency debasement will be the most important investment trend of this decade, and it will devastate most people.
- Nick Giambruno Buy dollar insurance now, because the policy will cost more as the dollar becomes worth less.
Repatriate US corporate profits from abroad
Knowledge is the enemy of fear
Risk vs. Potential Reward. Businesses have to evaluate decisions like this every day, and the big international businesses have entire tax departments dedicated to making these types of decisions.
There's a reason that money isn't back here.
I knew it would happen.
<< <i>Anyone have comments on this? There is an estimated $1.5 trillion held overseas. >>
A few comments:
1. With interest rates so low, why take the hit and use your own money when the foreign reserves make good collateral?
2. With such a hostile and volatile business environment here, expansion/investment and or acquisition activity is put on hold or greatly subdued. Why repatriate the money until you have a need for it, especially when the next opportunity might be overseas anyway.
I don't think there's a need for any special tax breaks to repatriate the cash. I think we'd get more yardage out of making the domestic business environment friendlier so that companies will want to use the cash here and will have no choice but to bring it back.
I agree with you. But that's not what they are doing. Companies aren't stupid - they evaluate and decide, based on risk and return. Apparently, they see some risk.
I knew it would happen.
Knowledge is the enemy of fear
<< <i>I look at a potential repatriation from a different viewpoint. If companies were to bring this cash back home, then that means selling of Euro, Cando, Aussie, Pesos, ect and buying of dollars. >>
Who's to say what currency the foreign reserves are held in? I don't know a lot about this but I'm not sure it would be accurate to assume that a good portion of the reserves aren't held in USD.
1. This is not a time to be acquiring gold.
2. BAC might be a great speculative play right now.
3. The FED needs to raise rates.
I am also sick to my stomach right now so that could account for any one of those three feelings.
I do not see why any of these wealthy individuals or Corporations would want to bring any of this money back to the U.S. while we have this marching socialism in this country. I have several friends here who have opened accounts in Canada and are ready to wire money in minutes as things get worse here.
The U.S. system is so corrupt now there is very little hope of ever finding a fix.
Here is one example out of millions that are playing out. I know of a young couple in my small town in Texas where a man and women have been living together for several years and have 3 children. They refuse to get married because as a single mom she gets get over $15,000 per year from the federal government in cash. In addition she got a home mortgage where the government pays about half of the mortgage. There are also other bennies, day care, children lunches, medical etc.paid by the state, so maybe the total is over $20,000 per year.
Do you think these situations can ever be reversed?? Why bring all that money back here when these corporations have no intention of hiring more workers here, or investing in new plants and equipment here?
<< <i>I got three feelings in my gut.
1. This is not a time to be acquiring gold.
2. BAC might be a great speculative play right now.
3. The FED needs to raise rates.
I am also sick to my stomach right now so that could account for any one of those three feelings.[/q
Bac at $2.50 double bottom may be a good buy down the road. The daily looks better than silver right now but the weekly bac don't look to good, significant down trend.