Hard-nosed Fed sends global markets reeling
Hard-nosed Fed sends global markets reeling
More ominously, some Fed officials fear the central bank is already "pushing on a string" and does not have the means to revive the economy. Whether or not they are right, this comes as a psychological shock for investors schooled by the "Greenspan Put' into thinking that there is a deus ex machina in the wings.
What goes up must go down... especially in a world being depleted of resources faster than ever.
Goldman Sachs said the yen was now overvalued by 20pc, or two "standard deviations" out of kilter
This is the most interesting aspect of this article. This implies that Goldman's algorithms for calculating prices aren't working any more. This has several very important meanings.
- The High Frequency Trading Algorithms used by the banks aren't or can't take into account macro economic trends.
- Their algorithms are much less effective at controlling the market now.
- Most importantly, the markets have broken out of long and old trading patterns.
Add in that their algorithms have known bugs or purposeful defects, as was demonstrated by the Flash Crash, and this is a recipe for disaster. Now, anything could happen.
Here is a good example of the problem:Demonstrating An HFT Algo Gone Apeshit
Well, today we just experienced another mini flash crash, after some algo went apeshit and decided to hit every bid on the way down, all the way to 0.0001 (gotta love that sub penny quoting just above zero). Below we show how this algorithm pushed the stock price of Core Molding from its normal price of $4.12 all the way down to $0.0001 in the span of one second, after an HFT program went ballistic, and would have kept on hitting the subpenny $0.0001 bid in perpetuity. It must have been swell to be a CMT holder: one second your stock is worth $4.12, the next, it is worth $0.0001 (and no, not $0.0000, how else will the computers game the NBBO in subpenny increments).
Greek banks hit by wealthy citizens moving their money offshore, USA next?
Greek banks hit by wealthy citizens moving their money offshore
Greek banks are being hit by a wave of redemptions as the country's most wealthy citizens and corporations look to move their money offshore or to international financial institutions perceived as safer homes for their assets
...
More than €3bn (£2.6bn) of deposits held by Greek households and companies left the country in February, while in January about €5bn of deposits were moved out, according to the latest figures available from the Bank of Greece.
When will this happen to the United States? What will be the "safe haven?"
I've been hearing noise about bond traders starting to react to the US Sovereign Debt. That very much could be the trigger of the next devastative wave of the many that the bankers and government have ready for us.
The only way to fix this problem is to return to the Constitution. This means ending the Fed, Congress issuing money as gold (if they don't like it they should change the constitution through amendment, duh), removing corporations from the government completely (no more corporate personhood, influencing, or lobbying), institute instant run off voting in all elections so 3rd parties have an equal chance, and many others.
Could it be claimed that the current two party political system in the US is discriminatory? To me, it seems, any 3rd party candidate is harmed in such a system thus requiring instant run off voting for real Representative Republic.
Detroit family homes sell for just $10
Detroit family homes sell for just $10
He said there were homes on the market for $100 (£61), but an offer of just $10 (£6) would be likely to be accepted.
...
"Detroit is a city in decline. We are known as the Murder Capital of America, because of the number of deaths each year."Mr Prophit said: "Since the subprime mortgage crisis and the collapse of Fannie Mae and Freddie Mac, the banks have been foreclosing on properties at an increase of 15 per cent every nine months.
"Last year my firm the Bearing Group dealt with 394 foreclosed properties which all sold for under $1000.
Five years ago the average home price in Detroit was hovering around the $100,000 (£61,000) now that has fallen to $11,500 (£7,000).
This is the future we have to look forward to. Detroit is the city in the coal mine. California is the state in the coal mine.
Keiser Report №17: Markets! Finance! Scandal!
We've been at financial war with China for many, many years. No one talks about the Chinese only letting us go through the kindness of their communist heart. At some point China is going start selling their worthless dollars, which will show just how little they are actually worth.
It's amazing that Goldman Sacks PROFITED from the hiding the Greek debt through derivatives and manipulating market prices. This only shows that derivatives really should be regulated. How exactly I don't know but maybe putting a cap on a derivative at $100 million would be a good idea. If banks move off shore to do this business so be it, would that put enough distance to be safe should the speculation hysteria burst?
I couldn't agree more with Keiser. The sooner and faster, the better. The more we delay the harder it will be. And there are some significant changes needed. Fiat money needs to go which is going to change a lot of things. But this is the only way to actually fix things.
If we don't fix this problem, then the banks will take everything because we all are using their future money which we need to pay back. The system is designed to make people fall off because not enough value has been, or ever could be, created to pay off their debt money with interest.
This is not a system of stable value. More money must be created to support the base of money in existence, with interest. This is an ever growing problem because the value represented by the dollar, the economy, needs to keep pace in order to stabilize the value. For decades they've created a little more money than created in the economy but now the economy has no more steam and cannot continue growing except through the shadow banking economy to which we are not allowed access. There has been extraordinary market distortions since the creation of the Federal Reserve and fiat money. That whole big mess needs to unwind before we get back on a sustainable track. This means a lot of changes which could be a complete mess if not actually planned by the government.
Not only that, but let me remind you that fiat money in the USA is actually unconstitutional.
Debt is everywhere because it is what we use as money! If you have money, it is really possessing other people's debts which they have to get back from you because, ultimately, it must go back to the bank with interest. We are literally slaves to our money system. Wasn't slavery made unconstitutional at some point?
The odd thing is that the money you do have usually lives at the bank. If you read the fine print of a new account document you'll see that it is really a loan to the bank. In exchange you get numbers in an account and the ability to (hopefully) get it back at some point in the future. Alas, they use this money as reserves to create new money and perpetuate the system.
Keiser Report №15: Markets! Finance! Scandal!
Remarkable that we let the government, the corporations, and these people do what they do.
Why the Euro is important
Moving debt around isn't going to ultimately solve the problem... The problem is that Money is Debt.
Better Off Deadbeat: Craig Cunningham Has a Simple Solution for Getting Bill Collectors Off His Back. He Sues Them.
Cunningham armed himself with this knowledge, and the next time a debt collector called, the trap was set.
It didn't take long. Cunningham had canceled a home alarm service with ADT Security after two months, and the company had billed him a $450 early termination fee, which he disputed. ADT sent his account to Equinox Financial Management Solutions, a third-party debt collector. The collection agency sent him a letter asking that he call back immediately. He dialed, armed with a voice recorder.
"Can you garnish my wages if I don't pay?" he asked.
"Yes," the voice on the other end of the line said.
"Can you put a lien on my house?"
"Yes."
Wrong answers. Turns out, Texas consumer rights laws are some of the most consumer-friendly in the country. And according to a federal consumer protection law, the Fair Debt Collection Practices Act (FDCPA), debt collectors are prohibited from threatening legal action that would violate state laws. In this case, garnishing wages or putting a lien on Cunningham's house would violate the Texas Debt Collection Act.
Cunningham knew he had a good enough case to file a lawsuit against the debt collection agency, and for his first lawsuit, he decided to enlist the help of a lawyer. Two months later, he had a check in his hand for $1,000.
"It's like discovering fire," says Cunningham, thumbing through the stack of lawsuit papers on his table.
....
Like Cunningham, Smith now armed himself with voice recorders and began keeping meticulous financial files. His file cabinet grew quickly. "I mean there's nothing I don't document now and that's probably the best thing a consumer can do."
Find out the laws in your state and take action. This is not a bad idea.
How the banks make the big bucks (by taking it from you)
Does Obama know this is going on? If he does, why doesn't he stop it?
Obama is a really smart guy. How could he not know this is going on?
Two things:
1- if he doesn't know, then he's incompetent.
2- if he does know and isn't doing anything about it, he's implicitly authorizing theft of government coffers at a biblical scale.
Lastly, why isn't the FBI investigating this kind of fraud?