Ping!
They never should have struck down the interstate banking regulations that started the merger mania.
From too big to fail to too small to matter.
Few analysts, pundits, or anchors are aware of the mammoth conflict of interest involved with the USTreasury Bond sales required to pay for all the bailouts. JPMorgan, with the essential aid of Goldman Sachs, plot to bring down the DJIA index and the S&P500 index whenever the USTreasury conducts auctions or needs Congressional passage of key bailout bills. In Oct 08, they sold $194 billion of Cash Mgmt Bills (CMB) over two weeks. The big stock declines seen recently work to the BENEFIT of the USTreasury and US Fed. as agent for auctions. TBill yields are down near zero, in case you have not noticed, with principal prices corresponding almost as high as the bond permits. The USGovt is conducting auctions for TBills at top dollar prices, when its credit rating should be caving in radically upon downgrades. These USTreasurys are destined to enter default at a later date, where the loss to foreign investors will be maximized. Most of the US public has savings dominated by stocks, with little in bonds. So the US public is being fleeced, coming and going, since even money markets contain toxic mortgage bonds. Look for the stock market decline to come to a surprising end when the USGovt has completed the majority of their planned emergency supply sales via auction.
The Wall Street tactics have recently turned more vicious and devious, actually creating volatility, producing fear for political purpose. They accused hedge funds of driving up the crude oil price, rendering great harm to the US Economy and US citizens. So they urged unsuccessfully the Securities & Exchange Commission to force hedge funds to reveal their speculative positions. The Wall Street thieves and conmen wish to learn details on hedge fund positions so as to target them illicitly. In a queer twist, JPMorgan has benefited from an interesting double kill. They exploit hedge funds, wreck them, then encourage them into the fold at JPM in brokerage accounts, where their private accounts are rendered vulnerable under the new US Fed. rules. JPMorgan is a monster predator at work, which is permitted to manipulate markets and clients with total impunity.
The path of JPMorgan growth into a FRANKENSTEIN took radical changes in course after both the failures of Lehman Brothers and recognition that Fannie Mae & Fannie Mae had to be taken over by the USGovt. To halt the run on their bonds, the USGovt acquired the entire F&F Cesspool. The impact hit the Credit Default Swap market immediately. AIG had been weakened one week earlier from the technical default of Fannie & Freddie, which resulted in broad CDSwap payout’s. Ripple effects from the Lehman Brothers failure that followed were deep and broad throughout the system, killing AIG. The Wall Street central harlot (Goldman Sachs) advised the USGovt to assume full control and risk of AIG, as GSachs avoided $20 billion in sudden losses in the nick of time, a pure coincidence!
Two mergers of questionable nature highlight the altered role of the Federal Deposit Insurance Corp (FDIC), which no longer protects bank depositors or their investors, but rather serves JPMorgan Chase. When Bank of America merged with Merrill Lynch, a trend started, one that exposed private stock brokerage accounts. Officially they can be legally borrowed across subsidiary lines. The FDIC averted a failure of Merrill Lynch without the credit default implications.
The other event was more blatant, as the FDIC steered Washington Mutual out of bankruptcy failure and into the JPMorgan slaughterhouse. Inside its chambers, JPM gobbled up the WaMu deposits and benefited from ratio improvements. Senior WaMu bond holders were crushed, fully denied due process from bankruptcy. The FDIC has become an ugly investment banker lookalike, serving JPM and not the US public. The FDIC owns a pitifully small $45 billion in funds available for bank bailouts, at June 08 count. When the dust clears a year or more from now, many multiples more will be necessary for many bank failures. The reversal by the FDIC to not serve the public has caused gigantic Wall Street problems.
There is one more detail. Lest one forget, Goldman Sachs was exempt from the short rule restriction placed on a few hundred financial stocks traded. The reason had something to do with market stability and integrity assurance! Goldman Sachs clearly profited from the ups & down in the Dow and S&P500, lifting stocks after Congressional agreements, pulling them down before those agreements. JPMorgan and Goldman Sachs profit handsomely when the USGovt Plunge Protection Team pushes the stock indexes up with their usual methods. Oh by they way, JPM and GSachs are the managers of the PPT efforts.
The lies, deceit, backroom pressure, and fleecing of the American public is deep. Take the Emergency Economic Stability Act. Most of the initial $250 billion outlay was not devoted to American bankers, but rather to foreign bankers, primarily in Europe and England, and to purchase preferred US bank stocks. The US public was not told about this redirection, which constitutes misallocation, misappropriation, and fraud. The usage of funds to buy investment stakes in the giant US banks (GS is now a bank, etc, etc....) is assisting banks close to the power center, yet reeking with corruption.
The top-down approach used to date aids the bankers, while the homeowners are denied aid. That aid is promised but rarely arrives. The fundamental problem here is that billion$ are devoted to shore up insolvent banks, to redeem their worthless (or nearly worthless) bonds, and to give a giant pass to the executives.
My opinion is the greatest threat to the US economy right now is the trifecta of (JPMC, Goldman Sachs, and the FDIC) continuing to cordinate CDSwap fires. Its time for both Goldman and JPMorgan to be downsized, not let to grow larger. At a minimum, a breakup of their investment and retail banking divisions into independant companies.
The FDIC needs to return to its mandate of protecting US depositors and its investors, instead of acting as an investment banker agent for the major US financials and banks. They need less power, not an expansion of their powers as they have have recently been lobbying the US government for.
Posted on Monday, April 13, 2009 4:45:38 AM by dennisw
The bank has instructed Wall Street law firm Chadbourne & Parke to pursue blogger Mike Morgan, warning him in a recent cease-and-desist letter that he may face legal action if he does not close down his website.
Florida-based Mr Morgan began a blog entitled "Facts about Goldman Sachs" – the web address for which is goldmansachs666.com
http://www.freerepublic.com/focus/f-news/2227881/posts
I think all of the financial and economics honchos in this and the last couple of administrations are G/S people. They would have to be fired in a body- all of them- to even be able to start on dismantling G/S.
“Too big to fail” means “Too big to keep around”.
They are big enough that they are basically able to hold a gun to the governments head and say “Gimmeee...”
If we had instead ten thousand small banks, each with their own diverse portfolios, we would be far less vulnerable to these financial tsunamis.
This idiot doesn’t even know that “break up” is two words when used this way. And he wants me to listen to his advice on how to run the global financial system?