Tuesday, November 9, 2010

Morning Update/ Market Thread 11/9 – RAMPANT FRAUD

Good Morning,

Equity futures are higher this morning following the largest yet POMO yesterday, a pittance of only $6.8 Billion! The dollar is down after being up the past two days, oil is back above $87 a barrel, and gold is setting record after record now above $1,422 an ounce!

Below is a daily chart of oil futures on the left, and gold futures on the right. Both of these charts are of great concern – oil is targeting $95 a barrel, and gold appears to have shifted into a parabolic climb that you can see is now proceeding straight up. That move in gold is classic, I’ve underlined three slopes… it starts out climbing, moves into a steeper climb, and then finally enters a parabolic climb, moving farther away from the primary uptrend line. Parabolic moves can go a long way, especially in precious metals, but eventually this latest move will be erased as it is simply not sustainable on this path. Be careful if you are playing with gold or silver here:



Below is a ZeroHedge chart of the SPX priced in gold. Note that when stocks are priced in gold that the market has effectively gone nowhere since March of ’09. Clearly this highlights the fraud that is money printing – things priced in cheaper dollars APPEAR to be going up, but priced in REAL money they have only maintained the lows:



Truly the Grand Illusion. Does that mean that stocks can’t go lower priced in dollars? No… in fact to me it’s inevitable, but I don’t expect instant recognition.

I am stunned at the level of FRAUD that is being perpetrated across America (and most of the world). YOU ARE A VICTIM, YOU ARE BEING ROBBED, the FRAUD is RAMPANT.

IF YOU ARE AN INVESTMENT PROFESSIONAL, LISTEN UP.

Retirement funds are saturated with fraudulent paper – not just derivatives, but stocks and bonds as well. I’m going to run down just a small portion of the fraud below, if you are managing any type of investment funds you need to be aware of the fraud that’s present, it WILL unwind at some point.

Yesterday after the close Ambac (once the biggest monoline insurers) filed for bankruptcy. This company was built upon fraud to begin with, one half of its business was legitimate, the other half was all fraud. The legitimate business was insuring municipal bonds. The fraudulent business was insuring mortgages, including pools of mortgage derivatives. It was insuring those mortgages WITHOUT ANYWHERE NEAR SUFFICIENT ASSETS to actually pay in the event of default. This FRAUD was quickly obvious as the housing market began to unwind and its stock plummeted as you can see in this monthly chart of ABK stock:



As a part of the COVER-UP of the FRAUD that was prevalent, ABK broke itself into parts now calling itself “the Ambac Financial Group.” Note the word “Group.” What they did is ILLEGAL, they moved the good parts into new SHELL corporations while leaving behind the bad assets and liabilities in the old corporation. Despite being blatantly obvious and illegal, OUR GOVERNMENT did NOTHING.

Why is this shell game so destructive and illegal? Because the FRAUD leaves the investors who were defrauded in the first place holding a bag that is entirely empty – this bag is $1.6 billion in size (you may own ABK in your investment portfolio – and corporate crooks like Jim Cramer were just advising you to buy this stock even though bankruptcy was known). In other words, the shell game is an attempt to save the good assets for themselves while trying to leave former investors with little or nothing.

And here’s the result of the latest bankruptcy filing last night:



Guess what? The SHELL GAME is being played at nearly all the big banks too! The most obvious is Citi, who again with the blessing of OUR GOVERNMENT created a shell company to offload their crap assets. This way those crap "assets" could rot while isolating their good assets for themselves. Again, this leaves the investors out in the cold.

Could a good attorney “pierce the corporate veil” and get to the good assets? In a functioning system the answer is clearly yes they could. However, in this system the FRAUD is so pervasive that should it be exposed for what it is then the entire financial system WOULD COLLAPSE. That part is FOR REAL. That is why the patsies in OUR government are letting the crooks get away with it – it is because they have no spine to do what is right. The further away we get from fixing it, the harder it gets to do the right thing. There are no adults present, and it is making us all victims of their crimes multiple times over.

So, if you are an investor, WHY WOULD YOU LET ANY OF THESE COMPANIES HAVE ANY OF YOUR MONEY? If you do, you are a two-time fool.

The shell game is a completely different FRAUD than CONTROL FRAUD which is also RAMPANT.

Forclosuregate is exposing the methods of the criminals. Yesterday depositions began regarding the processing of interbank transfers. PLEASE take a few minutes and at least listen to the FRAUD that was occurring with the transfer of notes. We’re talking about so many illegal misrepresentations that it is simply AMAZING that it had not been exposed before:

Crystal Moore Deposition Part 1


Crystal Moore Deposition Part 2


Impersonating multiple bank Vice Presidents? Attesting to being at addresses in states which you have never been in? It gets worse, and it is one lackey right after the other:

Bryan Bly Deposition Part 1


Dhurata Doko Deposition Part 1


So I ask, where are the real officers of NTC, and WHEN DO I GET TO SEE THEM WEARING ORANGE JUMPSUITS?

I bet you know the answer to that, NOT ONE PERSON is doing jail time for FRAUD that is so rampant that it literally could bring down our entire financial system and is clearly a VERY LEGITIMATE THREAT TO OUR NATIONAL SECURITY, unlike all the FALSE FLAG scare tactics being used to make you submit to full body pat-downs at the airport, which is simply justification to rob you of your tax dollars so that the TSA is forced to buy the latest look through your clothes gizmo that makes the financiers and military industrial complex rich.

Do you see how you are being manipulated and robbed? Just last night I watched people being interviewed on the nightly news about the pat-downs and CRINGE when I hear acceptance along the lines of “Well, I understand the need.” What complete and utter bullshit – pure manipulation, brain washing, conditioning, and THEFT.

But that’s a whole other subset of the FRAUD.

And if you happen to commit any minor infraction of the laws set forth by the bankers, BINGO, instant orange jump suit for you.

While nation threatening FRAUD is occurring right under everyone’s noses, crap like this is occurring to the people:

Illegal Barber Arrests

As many as 14 armed Orange County deputies, including narcotics agents, stormed Strictly Skillz barbershop during business hours on a Saturday in August, handcuffing barbers in front of customers during a busy back-to-school weekend.

It was just one of a series of unprecedented raid-style inspections the Orange County Sheriff's Office recently conducted with a state regulating agency, targeting several predominantly black- and Hispanic-owned barbershops in the Pine Hills area.

In "sweeps" on Aug. 21 and Sept. 17 targeting at least nine shops, deputies arrested 37 people — the majority charged with "barbering without a license," a misdemeanor that state records show only three other people have been jailed in Florida in the past 10 years.

The operations were conducted without warrants, under the authority of the Department of Business and Professional Regulation inspectors, who can enter salons at will. Deputies said they found evidence of illegal activity, including guns, drugs and gambling. However, records show that during the two sweeps, and a smaller one in October, just three people were charged with anything other than a licensing violation.

So, in the hard economic times created by the real criminals, if you are cutting someone’s hair without a license, then you are subject to armed invasion, handcuffing, and arrest.

Yesterday I was watching the local evening news and saw a video about six local police officers who completely destroyed the front door of a guy’s home, dragged him out of his house and placed him in handcuffs in front of his neighbors. A homeowner. His crime? One of his neighbors smelled pot coming from his house and called police. Without any research, they send in six fully armed police who don’t even knock on his door to ask him a question straight up… they just kick it in, stick a rifle in his face, and put him in handcuffs. Turns out he is ill and has one of these medical marijuana permits from the state – something the police could have easily known if only they looked BEFORE they kicked down his door.

This is similar to an episode you may recall happened to a neighbor less than a block from where I live. The police led this early morning raid with stun grenades and wound up using automatic gun fire to kill the guys dog who was in the back yard. Turns out the guy wasn’t even home. His crime? Allegedly selling prescription drugs – a bad offense to be sure, but bullets flying in my neighborhood? Police leading with stun grenades? No research, no intelligence gathering at all, or they would have known he was not home.

POLICE OFFICERS AND MILITARY LISTEN UP! You are beginning to see more public pushback against these tactics. This is because THEY ARE WRONG. If you are being asked to take part in activities like this, you need to provide ADULT leadership for your units. REFUSE to act in an inappropriate manner against the very public you serve! You will find that doing the right thing will restore the TRUE RULE OF LAW, and that you will earn the people’s respect. By doing the RIGHT THING, you will live a life of virtue, your soul clean from knowing that you are protecting society, not protecting those who are DEFRAUDING IT.

And speaking of FRAUD, read this and weep for your nation:

Nov. 9 (Bloomberg) -- Goldman Sachs Group Inc., the bank that makes the most revenue trading stocks and bonds, lost money in that business on two days in the third quarter and made more than $100 million on seven days.

Losses on Goldman Sachs’s trading desks were between $25 million and zero on two days during the period that ended on Sept. 30, according to a filing today by the New York-based company with the U.S. Securities and Exchange Commission. The firm’s traders made between $75 million and $100 million on 24 days, the filing showed.

Gee, that’s nice. How do you suppose it's possible to make millions upon millions each and every day, day after day? Two losing days? Now, if you can’t see the FRAUD that’s occurring here, then you are BLIND, or you work for the government and fear that exposing this FRAUD will bring down our financial system.

I say the sooner we bring it down, the sooner we can rebuild it. A few tweaks aren’t going to do it.

Meanwhile:

NEW YORK (CNNMoney.com) -- Americans have paid off nearly $1 trillion in debt over the past two years, although the pace of repayment has slowed, according to a regional Federal Reserve report released Monday.

Total consumer debt was $11.6 trillion as of Sept. 30; down 7.4%, or $922 billion, from the peak reached in the third quarter of 2008, according to the Federal Reserve Bank of New York. Consumer indebtedness fell another 0.3% in the third quarter, after a 3.3% decline in the prior quarter.

And what is that trillion being offset by? By printing $110 billion per month. That printing simply destroys your purchasing power, a TAX wherein you get the bill while the Goldman’s of the world take multimillion dollar bonuses and rob you in THEIR markets with their HFT machines.

Oh yeah, they are robbing you in every manner possible – Control FRAUD, Market FRAUD, the Shell Game, you name it. And here’s where it leaves you:

Bankruptcy filings jump 14% in 2010

NEW YORK (CNNMoney.com) -- As the U.S. economy struggles to recover from a deep recession, the number of Americans filing for bankruptcy continues to rise dramatically.

In the federal government's fiscal year 2010, which ended September 30, more than 1.5 million non-business bankruptcy filings were processed, according to data released Monday by the Administrative Office of the U.S. Courts. That's up more than 14% from fiscal 2009, when about 1.3 million personal bankruptcies were filed.


Got it? Sure, go long stocks. If you do, you are GOING LONG FRAUD. I hope that works out for you. I have a better idea – TAKE ALL YOUR MONEY OUT OF THE MARKETS AND STARVE THE CRIMINALS OF THE FUEL THEY NEED TO ROB YOU.

Here’s today’s Small Business Optimism “economic report” from Econoday:
Highlights
October small business optimism edged up 2.7 points to a reading of 91.7. However, according to NFIB, the index remains stuck in the recession zone established over the past two years and not a good reading. This is still a recession level reading based on Index values since 1973. However, job creation plans did turn positive and job reductions ceased. The mood for inventory investment weakened a bit even though views of inventory adequacy improved, and an improvement in sales trends produced a marked improvement in profit trends, still ugly, but less so by a significant amount.

Wholesale Trade (PRICED IN DEVALUED DOLLARS) is released at 10 Eastern this morning.

Everywhere I look I see FRAUD. I have never seen so much out in the open rampant FRAUD, I can’t even fathom that we have degenerated to the depths that we have. To end the FRAUD, it will require that EVERYONE do what is truly right – not just what some supervisor or banker backed law dictates. There is a universal law of humanity. Each individual needs to take personal responsibility and pledge to themselves and to future generations that they will not support the ongoing capricious FRAUD.