O.K. NOW LISTEN TO A PROMINENT REPUBLICAN ECONOMIST'S TAKE ON QE3

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David Stockman on Federal Reserve Arrogance and Monetary Mission Creep! 

http://youtu.be/6QBiaq9OBgc

Published on Sep 21, 2012 by CapitalAccount 

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Welcome to Capital Account. Now that the Fed has announced QE3 and Japan announced QE 8, Brazil is threatening defensive measures and bringing talk of Currency wars back, according to multiple press reports. Brazil's finance minister coined the term 'Currency Wars' two years ago as governments battled to lower exchange rates to boost competiveness. We talk to David Stockman, former director of the Office for Management and Budget during the Reagan administration, about the malignant effects of Federal Reserve policy and the lack of market-set interest rates! 

Our guest, David Stockman, author of "The Triumph of Politics," recently had some choice words Federal Reserve, stating:"The Fed (and the lunatics that run it) are telling the whole world untruths about the cost of money and the price of risk." We talk to him about monetary policy, taxes, sound money, and more. 

Plus, the U.S. Senate panel probing JP Morgan's multibillion dollar 'Whale Trade' loss plans to unveil its findings to press regulators to tighten the Volcker Rule. We ask David Stockman if this would be enough to rein in too big to fail bank risk. 

Also we launch our Facebook page today! Check it out at www.facebook.com/pages/Capital-Account. Lauren shows off the new page and discusses your comments in Viewer Feedback. 

JPMORGAN CHASE'S GAMBLING LOSSES: WHY YOU SHOULD CARE

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Taibbi: Why You Should Care About JPMorgan Chase's Gambling Losses

By Susie Madrak
 

http://youtu.be/XWTkOG_UprY

Matt Taibbi with a good explanation of why we should be upset about JPMorgan Chase and their $2 billion in gambling losses (remember, Jamie Dimon's saying at least $2 billion):

If you’re wondering why you should care if some idiot trader (who apparently has been making $100 million a year at Chase, a company that has been the recipient of at least $390 billion in emergency Fed loans) loses $2 billion for Jamie Dimon, here’s why: because J.P. Morgan Chase is a federally-insured depository institution that has been and will continue to be the recipient of massive amounts of public assistance. If the bank fails, someone will reach into your pocket to pay for the cleanup. So when they gamble like drunken sailors, it’s everyone’s problem.

Activity like this is exactly what the Volcker rule, which effectively banned risky proprietary trading by federally insured institutions, was designed to prevent. It will be argued that this trade was a technically a hedge, and therefore exempt from the Volcker rule. Not only does that explanation sound fishy to me (as Salmon notes, for Iksil’s trade to be a hedge, this would mean Chase had an equally giant and insane short bet on against corporate debt, which seems unlikely), but it's sort of immaterial anyway: whether or not this bet technically violated the Volcker rule, it definitely violated the spirit of the law. Hedge or no hedge, we don’t want big, federally-insured, too-big-to-fail banks making giant nuclear-powered derivatives bets.

This incident is certain to reignite the debate about Dodd-Frank and may undermine the broad effort to roll back the bill, which we wrote about in the latest issue of the magazine. Staffers on the Hill started mobilizing the instant the Chase news hit the airwaves yesterday, and you can bet we'll hear more debate in the next few months about not only the Volcker Rule but the Lincoln Rule, which was designed to wall off risky swaps from the federally-insured side of these banks.

I’ve heard from all sides today, with some thinking the Chase trade was Dodd-Frank compliant, and others saying it probably violated both the Volcker and the Lincoln rules.
Either way, the incident underscored the basic problem. If J.P. Morgan Chase wants to act like a crazed cowboy hedge fund and make wild exacta bets on the derivatives market, they should be welcome to do so. But they shouldn’t get to do it with cheap cash from the Fed’s discount window, and they shouldn’t get to do it with money from the federally-insured bank accounts of teachers, firemen and other such real people. It’s a simple concept: you either get to be a bank, or you get to be a casino. But you can’t be both. If we don’t have rules to enforce that concept, we ought to get some.

In the meantime, JPMorgan shares tanked with the news:

JPMorgan Chase & Co lost $15 billion in market value and a notch in its credit ratings on Friday while a chorus of regulators and politicians reacted to its surprise $2 billion trading loss by demanding stiffer oversight for the banking industry.
The loss by one of Wall Street's most respected banks embarrassed chief executive Jamie Dimon, a leader lauded for steering his bank through the fallout from the 2008 financial crisis without reporting a loss.

"We know we were sloppy. We know we were stupid. We know there was bad judgment," Dimon said in an interview with NBC television to be broadcast on "Meet the Press" on Sunday.

More here.

YES, JP MORGAN IS MANIPULATING THE PRICES OF GOLD AND SILVER, BUT NOW THAT THEY'VE MANIPULATED IT DOWNWARD IT IS A GOOD TIME TO BUY THESE *PHYSICAL* METALS (NEVER PAPER CERTIFICATES!)

Mike Maloney breaks down Price Manipulation in the Gold and Silver Market

http://youtu.be/UWK5UQDCDTc

Uploaded by CapitalAccount on Apr 6, 2012

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Welcome to Capital Account. Hedge funds and investors have reportedly been puzzled by weird movements in credit markets. According to the Wall Street Journal, markets have been rattled by one trader with deep pockets being called the "London Whale" who it's believed works for JP Morgan. It just goes to show how individuals and firms can move markets. Today, we'll talk about manipulation in the gold and silver markets with Mike Maloney, of GoldSilver.com. He believes that manipulation is going on (contrary to the words of Blythe Masters, who spoke with CNBC yesterday, affirming that JP Morgan is simply "hedging" it's silver positions with large open shorts), but that rather than being a bad thing for individual investors, simply presents an opportunity for buying more metal and cheaper prices. This is something that the state of South Carolina failed to grasp in a recent report it conducted, in which it found that the price of gold and silver is manipulated. Rather than concluding that this manipulation, rather than presenting an opportunity for investment, prohibits the state of South Carolina from investing in precious metals.

An US payrolls for March rose far less than expected which means people are talking about an extension of the Federal Reserve's stimulus measures -- buzzing about more. We talk often about the malevolent effects of fractional reserve banking based on a pyramid of fiat liabilities and fiat currency, but what about the fractional reserve gold pyramid scheme? What about the gold ponzi scheme? We'll examine the evidence of, what CTFC commissioner Bart Chilton calls, "ponzimonium."

And how does the entire manipulation go down? Mike Maloney has presented us with a fantastic chart that shows how trading in Gold during market ours in the US differs greatly from that in after-market hours, and how well an investor would do had he or she bought gold at various times during the day over the course of the bull market.

PROFESSOR WILLIAM K BLACK: "...EVERYBODY THAT KNOWS ABOUT FRAUD HAS SAID THAT [THE JOBS ACT] IS THE WISH LIST OF EVERY FRAUD-FRIENDLY PRACTICE IN THE WORLD PUT TOGETHER IN A BILL, AND WE HAVE CONGRESS DELIBERATELY SCREWING UP THE CONGRESSIONAL RULES PREVENTING HEARINGS BECAUSE THEY KNOW THAT THIS COULD NEVER BE EXPOSED TO REAL DISCUSSION BY EXPERTS AND PASSED."

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http://youtu.be/fyVOJPDYp34

TBTF Sheriff Bill Black on the MF Global Cover-up: "All those that doeth Evil hateth the light!"

Uploaded by CapitalAccount on

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Welcome to Capital Account. The Federal Reserve Bank of Dallas says Dodd-Frank did not end too big to fail, and says we must downsize the TBTF monsters in the view of Richard Fisher. This, as some US lawmakers are working to push back the timeline for a key part of Dodd-Frank, the Volcker Rule...a rule regulators and banks already appear to be hollowing out. We'll look at what the costs of these actions could be

Meanwhile, the "Corzine Rule" is reportedly gaining momentum -- this would restrict what brokerage firms can do with customer money. Before looking forward -- what about the unanswered questions and accountability in the MF Global bankruptcy and what we consider theft of customer money? We'll talk to William K. Black, the former regulator who oversaw prosecutions of bankers for fraud during the S&L crisis to find out what it would take to see justice in this case. We will discuss some of the peculiarities surrounding the MF Global bankruptcy, the decision by CFTC chairman Gary Gensler to proceed with a Chapter 11 bankruptcy as per the SEC, with a SIPA/SIPC liquidation for the brokerage unit, which put the customers on even footing with the creditors, instead of a Chapter 7 bankruptcy for the entire company. We ask Bill Black if this is an example of control fraud and regulatory capture, and where a crime has been committed here.

Meanwhile, do you think we have enough lawyers in the US already? Well, you may be happy to hear this...the organization behind the law school admissions test -- the LSATS -- saw the largest decline in people taking the test in more than a decade. Is "the law" in a bear market? Demetri think so. He says the bear market in the legal system is the corollary for the bull market in whistle blowing. Otherwise, you wouldn't need monetary incentives beyond what is already in place to get lawyers to prosecute crimes. Whistle blowers make it easy for the prosecution.

Web Extra: Interview w/Naked Capitalism's Yves Smith on Mortgage Settlement and Bank Hostage Crisis 

http://youtu.be/6aYqocCgI6M


Uploaded by CapitalAccount on Mar 14, 2012

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Last month's proposed $25 billion mortgage settlement involving 49 states along with Bank of America, Wells Fargo, JPMorgan Chase, Citigroup and Ally Financial is a step closer to being official, reports Reuters, as Federal representatives ask a judge to approve it. Supporters claim this deal attempts to prevent the mortgage crisis from happening again, with banks agreeing to revamp loan modification procedures and abandon abusive practices such as robo-signing. But critics argue this is a case of a trend we've seen far too many times before: a settlement that's a good deal for the banks, where they admit no guilt, but a lousy deal for homeowners. Yves Smith is author of the popular blog Naked Capitalism and the book Econned. She's a critic and has followed this deal closely throughout the entire process and breaks down why this is the case and how this deal ended up with "a lot of garbage in it." Smith says banks are paying much less than $25 billion, there is no element of damages or notion of punishment, and the cash payments for people who lost their homes wrongfully is so trivial it's insulting.

CAPITAL ACCOUNT: THE WASHINGTON DC OFFICE OF A NEWS SERVICE BASED IN RUSSIA GETS TO THE HEART OF MATTERS AFFECTING THE WORLD'S ECONOMIES

Capital Account can be accessed here and subscribed to if you wish.

I have known of Russia Today (RT) from videos I had come across at random.  But it was only a few days ago I that was clued in to Capital Account by Paul Craig Roberts, an economist who was Assistant Secretary of the Treasury under Ronald Reagan and occasionally picks bones with with Keynsian economists.  However, in the present-day state of the world's economy, PCR explicitly recommended the videos below of interviews with Keynsian economists Michael Hudson and Bill Black, presumably because he agrees with their analyses. The host and commentator of Capital Account, Lauren Lyster, is incredibly well versed in issues affecting the economy. I confess that I haven't watched the U.S. "mainstream media" news analyses in a month of Sundays, so I hope that some readers of this post who have will append comments on their impressions of the similarities and differences.

http://www.youtube.com/watch?feature=player_profilepage&v=zJhGExuAmtE

Michael Hudson, "Technocrats are Lobbyists for the Wall Street Gang"

12/07/11


While the failure of MF Global (together with its CEO Jon Corzine) is at the center of the present discussion, it is not the only large financial institution that lacks the collateral to cover it's gambling debts. Indeed, all of the large banks in the U.S. and many of those in Europe are presently on "life support," to pick a metaphor.

http://www.youtube.com/watch?feature=player_profilepage&v=hHcMKxp30gs
William K. Black: Justice Department is the Dog that has Refused to Bark for a Decade
12/08/11



http://www.youtube.com/user/CapitalAccount?feature=watch#p/f/14/xFlV_js4j_o

Gerald Celente, "They are Robbing Celente to pay the Goldman Sachs Gang"

12/13/11


Unlike the videos above, the following is a full length show.

Jon Corzine, CEO of MF Global (and former CEO of Goldman Sachs, U.S. Senator, and New Jersey Governor), apparently presided over MF Global's taking money from customer savings accounts for use as collateral for a speculative "investments" by the supposedly-segregated investment division, which lost big time. American Farmers and airlines are among the victims. Many of the European banks are in the same situation. The fall in gold prices is viewed by interviewee Karl Denninger as being the result of the big banks in this situation selling off all their tangible assets to cover a landslide of withdrawals from savings accounts.


http://www.youtube.com/watch?feature=player_profilepage&v=P0N_tHh8f4U

Capital Account: Gold sinking, Dollar rising - are we facing a Financial Crisis worse than 2008?

12/15/11