FedUpUSA

Archive for November 15th, 2011

No, this is serious news. Dow Jones reports:

JP. Morgan Chase & Co. (JPM) next year plans to issue the first U.S. commercial mortgage-backed securities supported by defaulted loans since the 1990s as it revives a practice that regulators used to extricate the nation from the savings-and-loan crisis.

The investment bank has approached rating agencies with two pools of distressed loans that it acquired from European banks and other financial institutions, according to people familiar with the matter.

Uh…..

111011010010101010101011 Buffer Overflow

#Ref! #Ref! #Ref! #Ref! #Ref! #Ref! #Ref! #Ref! #Ref!

ZeroHedge

It seems bankers are taking over politics in Europe, financial analyst Max Keiser told RT, adding that this trend could lead to global banking domination.

­“We cannot get rid of these zombie bankers, we can’t kill them,” said Keiser, host of RT’s Keiser Report. “Iceland thought they had killed off their zombie terrorist bankers, but they have risen again and are now sticking Iceland. They are a plague around the world, and certainly in Europe. There are no elections, but they are putting bankers in charge to bring back total banking domination as the world goes down the slippery slope into banker hell.”

Keiser told RT these former bankers’ main agenda is to create more debt.

“In the eurozone they have an opportunity to bring all the balance sheets of all the countries together and create new lending facilities like EFSF which is a new 5 trillion euro lending facility, and they want to build on that to create 10-20 trillion euro lending facilities, because bankers get paid on how much debt they create. More austerity measures bring about more debt, and that brings more fees for bankers and more financial terrorism,” he explained.

According to Keiser a very small elite continues to benefit from the disastrous situation in the eurozone, which continues these same ploys that it has carried out over the last few years.

“There used to be a thing called moral hazard where if banks took risk, they would be at some point penalized by the system, but now the more risk they take the greater the rewards they get,” he pointed out. “JP Morgan is now going to step in front of the allocated accounts of customers and actually steal money from their accounts. We haven’t seen this level of larceny and theft since the Nazis stole assets from people in Germany in the 30s. This is outrageous, this has not been done in decades. There are no regulations in place at all! Interest rates are zero per cent, so I expect more of the same,” he added.

According to Keiser, this means the financial elite work together with the European Central Bank and keep interest rates near zero per cent, because this allows them to fund their speculative investments at zero cost.

“They don’t want to spend any money to borrow money and put outrageous bets on the table. Every time they lose a bet, then they impose more austerity measures. Every time they win a bet, they keep 100 per cent of the profit,” he claimed.

He also stressed that putting bankers in political positions resembles the behavior of someone who has been a victim of crime.

“People keep saying the bankers know best. But the bankers are the ones who have stolen all the money, so are we going to give them more ability to steal more money and impose more austerity measures? But that is insane,” Keiser concluded.

­Paolo Raffone, founder of a Brussels-based non-profit organization, the Chipi network, told RT the eurozone has been pushed too quickly as part of the European project.

“The original idea was to have a monetary union pushing a political union. But as we see the political union has never been built because it was not the will of the people to build it. And the monetary union is shaking,” he explained.

He also added the eurozone will have a new setup in future, even if all the current EU and eurozone members get together again.

“The way the union is functioning will be different, otherwise it may split up,” he added.

RT

Italian 10-Year Bond Yield

It’s happening folks…

Italian bond yields continue up.

That’s not particularly news.

But now yields are going up in France, Spain and Belgium.

One downgrade to France and it all goes up in smoke for the EFSF.

Political movement no longer works.  You need fiscal resolution and you can’t get there from here.  Don’t believe for a minute that this isn’t going to blow up in people’s faces, because it both can and will.

“It’s a confidence crisis,” said Elwin de Groot, a senior market economist at Rabobank Nederland in Utrecht, Netherlands. “Investors have no confidence that the euro zone can solve its problems. They will look for the most safe place they can store their money, which is Germany. Everything else is suffering.”

This is not going to end well and so far there is nobody talking about what has to actually happen either here or there — that is, whatever services people want from government they must be willing to pay for them with current tax revenues.

That’s the beginning and end of it and the time to take this action is quickly coming to a close.  The market is going to enforce prudence whether the wonks in The Fed, in the ECB and in all of the governments involved like it or not.

Eurostat says that GDP in the Eurozone was 0.2% for the third quarter. This means that the Euro zone as a whole cannot run any fiscal deficit whatsoever without continuing an attempt to build the Ponzi.

I repeat: NOBODY is yet speaking to the truth of the matter.  Not central bankers, not governments, not politicians in either party here and nobody over in Europe.

The market is calling “BS!” on the games; the banksters and governments, having gotten away with bailing out the crooks in 2008 and then refusing to put a stop to the abuses, smugly thinking they could just go on their way and leave everything alone (including the asset-stripping and lying schemes of the banksters) are discovering that the market is refusing to play along and is going to force the truth into the open.

I have warned of this for four and a half years and have been ignored.  To date while there are people using a lot of “if” words, including Evans who is single-handedly destroying the credibility of The Fed right now on CNBC, and Liesman, rather than calling him on it, is (again) being an enabler.

Again folks, the bottom line is simple: You cannot continually borrow and spend more than you make, yet this is the game that governments have continually played for 30 years, and private businesses have attempted to “lever up” to “take advantage” of this without regard to the mathematical inevitability of this strategy’s failure.

Superior Court  Judge Dennis T. Blackmon of the State of Georgia.  This opinion is not just good, it’s a work of art.
Phillips vs US Bank Homeowners Are 3rd Party Beneficiaries of HAMP

Thank you Judge Blackmon.  There are some days I’m terribly proud to be part of our legal system and some days, not so much.  Today is definitely one of the former.