TALEB: 'If I Were President, I'd Fire Bernanke!'

Bernanke's artificial markets.
Good highlight clip.  This is the one to watch.
(Bloomberg) -- Dr. Nassim Taleb, professor of risk engineering at New York University, explains how he would have avoided the 2008 financial crisis.

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Currency wars and the decline of the middle class.

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Taleb on artificial markets and stocks vs. bonds.

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Full interview.


Photos by William Banzai7

Ryan Warns of Financial Collapse Over Debt, Its About Time A US Politician Says This As We’re Looking At $700 Billion Just To Pay Interest On The Debt!!!

Ryan warns of financial collapse over debt, urges Congress to avert ‘moral failure’

Rep. Paul Ryan issued an urgent call to conservatives Friday to bridle the debt and head off a crisis he described as a looming “moral failure,” defending the budget he introduced earlier this week from a barrage of Democratic attacks.
“We have to tackle this problem before it tackles us,” Ryan said, speaking on the second day of the Conservative Political Action Conference.
Putting the problem in stark terms, the House Budget Committee chairman and former vice presidential nominee said the nearly $17 trillion debt will “weigh down the country like an anchor” within the next 10 years. He said lenders will at that point lose trust and interest rates across the country will soar — under pressure, he said the federal government will print more money, cheapening the currency and leading to a financial collapse that has the effect of unraveling the social safety net. 
“It would be a moral failure,” Ryan said. The deficit spending, he said, “has to stop.” 

The Final Con…”Better prepare! The tragedy that lies ahead is apt to make the Great Depression look like a walk in the park.”

The stock market has now been up for ten straight days. Many on Wall Street are singing “Happy Days Are Here Again.” For them, that is probably the case. They finally have something to sell that will bring the rubes back into the markets. We are not in Kansas anymore.
Fear is ebbing and greed is coming back. Those on the outside looking in are rounding up cash so that they don’t get left behind. The shills assist them with their pictures of economic recovery, new era crap and whatever other nonsense they can peddle successfully. So the cycle goes, as it has since the New York Stock Exchange came into existence. We are in another game of musical chairs where the music is playing joyfully. As in all such events, there are too few chairs to accommodate the participants when the music stops. And it always does!
There is no economic justification for the level of these markets, at least in the sense of improvements to the real economy. The economy is in worse shape than it was several years ago, made so via massive government interventions. Debt has been piled onto governments, corporations and individuals. It is not serviceable, certainly not at market-determined interest rates. Artificially low interest rates prolong the game, but do so by further corrupting economic decisions and the economy.

Former US Treasury Official – US Financial System To Collapse

kingworldnews.com / March 16, 2013
Today a former Assistant Secretary of the US Treasury warned King World News, “This type of situation is extremely dangerous.  The world has never seen it before.”  Former Assistant of the US Treasury, Dr. Paul Craig Roberts, also told King World News that JP Morgan now threatens the stability of the entire global financial system.  And if the Fed loses control and we collapse, “Nothing and no one would be safe anywhere.”
Here is what Dr. Roberts had to say in the second and final part of this extraordinary interview:  “I can point out three giant bubbles that threaten the remains of the American economy … When these bubbles pop, the consequence is obvious:  The wipeout of the remaining wealth from bond and stock collapses, and a very strong domestic inflation from the rise in the import prices.”
Dr. Paul Craig Roberts continues…
“The United States is now an import dependent country.  It doesn’t produce its own manufactured products, clothes, shoes.  These import items dwarf the import of oil or energy.  So what is the potential for happening when these bubbles burst is widespread unemployment, and a rapid increase in inflation, before which the economic policy has no known solution.
… It is frightening, and it shows the extent to which the economic policy of the United States is misused in support of four or five big banks that are ‘too big to fail’ … We now have one bank, JP Morgan, which has derivative exposure equal to the (entire) world’s GDP….

‘We’re Looking At $700 Billion Just To Pay Interest On The Debt!’

On Bernanke’s balance sheet bubble.

‘How will Bernanke deleverage into this market when the Fed itself owns the bulk of tradeable Treasuries.  Who wants to sell assets into a fragile recovery with the debt continuing to rise. Bernanke will delay, delay, delay!’

Why Congress Will Never Cut Spending
 

‘We’ll fight it tooth and nail!’  Under no circumstances!’

Bernanke: ‘I See No Evidence Of A Stock Bubble’

Analysis from Bloomberg:

Equity bubble?  Bond bubble?  Is Bernanke right?

An Orwellian America…(Must Read!!)

The state, crippled by massive deficits, endless war and corporate malfeasance, is clearly sliding toward unavoidable bankruptcy. It is time for Big Brother to take over from Huxley’s feelies, the orgy-porgy and the centrifugal bumble-puppy. We are transitioning from a society where we are skillfully manipulated by lies and illusions to one where we are overtly controlled. We are one crisis away from a police state. All the powers are in place. Someone will flip the switch. Whether a Cyber Attack, escalating Currency War tensions or a ‘terrorist’ attack by indebted college youth, it is only a matter of time and circumstance… We are one crisis away from a police state. All the powers are in place. Someone will flip the switch. Whether a Cyber Attack, escalating Currency War tensions or a ‘terrorist’ attack by indebted college youth, it is only a matter of time and circumstance.

SHOCKING! Obama: ‘We Don’t Have an Immediate Crisis in Terms of Debt’ … I Won’t Balance Budget ‘Just for the Sake of Balance

In an interview that was released this morning with former Clinton aide George Stephanopoulos on ABC, President Obama talked a little about his view of the debt.
“[W]e don’t have an immediate crisis in terms of debt,” Obama said. “In fact, for the next ten years, it’s gonna be in a sustainable place.”
Obama continued, “The question is, can we do it smarter, can we do it better? And– you know, what I’m saying to them is I am prepared to do some tough stuff. Neither side’s gonna get 100%. That’s what the American people are lookin’ for. That’s what’s gonna be good for jobs. That’s what’s gonna be good for growth.”

http://www.weeklystandard.com/blogs/obama-we-don-t-have-immediate-crisis-terms-debt_707545.html
President Obama Won’t Balance Budget ‘Just for the Sake of Balance’
In an exclusive interview with ABC News, President Obama rejected calls to balance the federal budget in the next ten years and instead argued that his primary economic concern was not balancing the budget, but rather growing the economy.
“My goal is not to chase a balanced budget just for the sake of balance. My goal is how do we grow the economy, put people back to work, and if we do that we are going to be bringing in more revenue,” he said.
Obama rejected a proposal put forth by Rep. Paul Ryan today that would balance the budget in ten years, saying the Republican House member’s plan “slashes deeply” at programs like Medicaid.
http://abcnews.go.com/blogs/politics/2013/03/president-obama-wont-balance-budget-just-for-the-sake-of-balance/

Obama: “We Don’t Have An Immediate Crisis In Terms Of Debt”

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Santander pair pocket £2.8m in hellos

Two new executives at Santander UK were paid a total of £2.8m in "golden hellos" last year, cutting across much stricter bank pay rules being introduced by the European Union.

The finance director Stephen Jones, who joined in March 2012, collected £2.9m, including £1.6m to buy out deferred share awards he lost when he left Barclays.
Santander UK's annual report also showed its highest-paid senior executive below board level received £2.5m, including £1.2m to buy out awards from a previous employer.
The executive is not named, but is likely to have been Charlotte Hogg, head of retail distribution, who joined from Experian.
Some investors dislike golden hellos, because they are paid before any work has been done.
The Swiss bank UBS provoked outrage on Thursday when it emerged that it had given its new investment bank chief Andrea Orcel a £17m package. "We don't agree to golden hellos but occasionally we will agree to buy out historical accrued awards or bonuses that have been earned," a spokesman for Santander said.
The spokesman said it was considered on an individual basis for top staff.
Santander UK's chief executive Ana Botin was paid £4m in 2012, down 3 per cent on 2011.
Santander had already revealed at the Spanish parent company level that she was paid €5.1m (£4.4m) and was the only main board member to receive a rise.
Santander plans to spin off and float its UK arm, but probably not until 2014 at the earliest. "The timing of this will remain subject to market conditions and to the emergence of a more positive outlook towards UK banks from investors," the annual report said.Santander said that 19 UK employees were paid more than £1m and that the overall bonus pool increased by 14 per cent last year despite a 2 per cent fall in profits.

Obama On Wall Street Fraud

Bank fraud, prosecution, and rule of law.
Flashback.  Just discovered this clip.  White House press conference from October 2011, otherwise known as 'presidential lip service to Occupy Wall Street.'
Transcript is here...

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Ratigan clip on Occupy Wall Street from the same week:

David DeGraw and William Black with Dylan Ratigan.
'We put the Treasury up for auction and Goldman Sachs was the highest bidder.'

Degraw, an organizer of Occupy Wall Street says:

• "The Wall Street protests are a rejection of the failed Left-Right Paradigm.  Both parties are to blame and both are owned by the big banks."

Black says:

• "The first thing we have to do is fire Tim Geithner, Eric Holder and force Ben Bernanke to resign.  There is no excuse for not prosecuting all 20 of the largest banks for obvious and demonstrable fraud.  Where is Paul Krugman and his use of the F-word, FRAUD!"

More fraud:

• Ethics Report On Countrywide VIP Scam

• Fraud Conviction Scorecard - Obama Comes In Last Place

Retail Stocks Showing Possible Consumer Retreat

Everyone knows that consumer spending keeps the economy running in the United States. If the consumer decreases their spending, the economy will usually come to an abrupt halt. Think about it, in 2008 when employers started to lay off workers the economy slowed down. Credit card lenders and banks also cut credit lines. This action by the large financial institutions also helped to cause a dramatic decline in the economy. Basically, when money is taken out of the hands of the U.S. consumer, the economy will slow down. After all, consumer spending accounts for roughly 70.0 percent of the gross domestic product in the United States. At the start of the new year the payroll tax cuts expired and everyone is seeing less take home money in their pay checks. Less discretionary income will make the consumer have no choice but to change the way they spend their money.
How can we tell when the U.S. consumer cuts back on spending? One of the best ways to figure out when the consumer is beginning to pullback on its spending habits is to follow the large leading retail stocks. One stock that is making a higher low on the daily chart is Costco Wholesale Corp (NASDAQ:COST). This stock had been a major winner in 2012, but now the stock is looking top heavy on the charts. It is still a strong stock and good company, but it now showing signs of slowing down in its price action. This stock still has some minor daily chart support around the $100.00 level in the near term. Should COST break that level with higher volume, then this stock could easily decline to $93.00 a share which is the next important support level.
Some other stocks that are making lower highs on the chart include Wal-Mart Stores Inc (NYSE:WMT), Bed Bath & Beyond Inc (NASDAQ:BBBY), Lululemon Athletica inc (NASDAQ:LULU), and Gap Inc (NYSE:GPS). All of these stocks have one thing in common, they have made lower highs on the chart. Lower highs on a chart are never a good sign for a stock. When lower highs occur in the leading retail stocks it is a sign of an economic slowdown by the U.S. consumer.

Nasdaq's New Private Market: Trading Unlisted Stocks

Helping the start-up ecosystem.
(Bloomberg) -- Bob Rice of Tangent Capital talks about Nasdaq's new private market.
Details are here...
Nasdaq, SharesPost To Set Up Market For Unlisted Stocks
The new venture, Nasdaq Private Market, will help the exchange rebuild its reputation as the exchange of choice for unlisted companies, after it was criticized for its role in the botched Facebook IPO last May.
"NYSE was taking a lot of share away from the Nasdaq even in tech listings, so I think it's kind of an opportunistic move for Nasdaq," said Josef Schuster, founder of Chicago-based financial services firm IPOX Schuster LLC.
Major market makers and broker dealers say they lost upward of $500 million because of technical glitches on the Nasdaq during Facebook's May 18 stock market debut.
Privately held SharesPost was charged by the SEC for failing to register as a broker-dealer before offering securities in its marketplace. It registered as a broker-dealer and paid $100,000 to settle the allegations.
Recent legislation, the Jumpstart Our Business Startups Act, has boosted opportunities for trading of unlisted companies. Under the act, an unlisted company can have 2,000 shareholders, up from 500.
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Update
Can't tell yet if the Naz announcement is related to this story from a few weeks ago.
SEC Seeks Stock Exchange Only For The Rich

How to Fix the Fix

How to Fix the Fix
by Adrian Ash, BullionVault


US regulator the CFTC is anxious about the London gold fix. But what is the fix, and why…?

SO IS the London gold fix a fix? US derivatives-market regulators think it might be.
The CFTC is no doubt absolutely within its rights to question the use of certain prices as reference points (aka “marks”) in US transactions. Joining the International Roundtable on Financial Benchmarks three weeks ago, its commissioner Bart Chilton said he also thought many other markets might deserve attention, too. But quite what a Washington commission overseeing the US futures markets might achieve – or hope to – as regards the London Fixings as a process, however, we can’t imagine.
What is the London gold fix, and why does it exist? The fixing exists because, in the physical bullion market, there isn’t any single price at any one time. Instead, all the different bullion banks and dealers quote their own prices direct to their clients. So the deals they strike are unique, with no centralized “clearing house” or “recognized exchange” reporting those deals as some kind of official price.
This is very different to a formal stock market or derivatives exchange. It makes valuing gold (in central bank vaults, say, or jewelry stockpiles) difficult. It also means that less active traders – such as gold miners, or industrial users – can’t be confident they got “true” market price.
Hence the fix, and hence it’s name. The fixing is essentially a snapshot of where the market stands for gold at 10:30am and 3pm (and for silver at midday) in London, heart of the world’s physical bullion trade.
To take that snapshot, the biggest bullion banks look at their outstanding client orders, net off the buyers and sellers, and then get together to agree a price which clears what remains. So make no mistake – the fix is NOT a notional price.
Real supply and demand from real sellers and buyers creates the fix, and real business is done at that price (lots of it, too). That makes the fixing very different from the interbank Libor lending rate.
Libor, as you’ll recall, is merely reported by the big banks. It doesn’t necessarily match interest rates which anyone has been charged or paid. Which clearly opens the door to fraud, manipulation and – four or five years after regulators catch onto the scandal – big fines for offenders.

The London bullion fixes, in contrast, offer genuine price discovery. No, it isn’t formally regulated by government (oh horror!). Yes, the fix is done behind closed doors (gasp!). But the banks’ clients can enter orders to buy (or sell) at the Fix if it is below (or above) a certain level, and they can be updated throughout the process, too. It also follows and then leads the “spot price” quoted in live wholesale trading. But that single “spot price” doesn’t exist, remember. The fix exists to fill that gap. And running since at least 1919 (and probably before, history fans) it has for almost a century acted as the global benchmark where none existed before.
Buy wholesale gold for Hong Kong delivery, and you’ll be quoted the London price plus (or minus) a premium for delivery. Ask a central bank the value of its reserves or a stockist the value of its holdings, and they’ll refer to the PM gold fix in their answer. Sell a gold mining company a long-term forward contract so they can hedge their exposure to prices today or raise capital to finance tomorrow’s drilling, and the PM London gold fix will be your obvious reference.
You want another? How might this more-perfect benchmark be achieved exactly? No doubt communism is a long way from Bart Chilton’s intentions. But judging from the CFTC commissioner’s comments to date, the concern seems to be that a “government, quasi-government or appropriate not-for-profit entity should oversee” how prices are reached.

Soviet Russia tried that for a while. Didn’t end well.


Adrian Ash is head of research at BullionVault – the secure, low-cost gold and silver market for private investors online, where you can buy gold and silver vaulted in Zurich on just 0.5% dealing fees.

(c) BullionVault 2013

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.