Insider Selling To Buying Ratio Approaches Five Digits, Hits Record 8,280x In Week Ending November 19

 

Guest Post: The Key to Understanding "Recession" and "Recovery": The Wealth Pyramid

The top 20% are prospering and spending money; the bottom 80% are not, but thanks to vast wealth disparity, the top slice of households can keep consumer spending aloft. This provides an illusion of "recovery" that masks the insecurity and decline of the bottom 80%. There is statistical and anecdotal evidence supporting both a "we never left recession" and "the economy is recovering" interpretation. The key to making sense of the conflicting data is to understand that there are Two Americas. Roughly speaking, we can divide the U.S. economy into "Wall Street"--the financialized part of the economy which encompasses the FIRE (finance, insurance and real estate) economy and its bloated partner in predation, the Federal government--and "Main Street," the looted, overtaxed remainder of the "real economy" which isn't a Federally supported corporate cartel (i.e. the military-industrial sector, the "healthcare"/sickcare sector, Big Agribusiness, etc.)

 

Bawney Fwank Wesumes His Extwemely Hypocwitial Ways By Calling All Fed Attacks "Extweme Hypocwisy"

The person who is almost singlehandedly responsible for the complete disaster that are today's bankrupt GSEs, somehow succeeds in making America hate him even more, when he notes that the global response of condemnation to the Fed's actions, and the subsequent enjoinder by Republicans who wish nothing less than to save the dollar, instead of allowing hyperinflation to deal with the consequences of the idiotic actions by the MA congressman, is "extreme hypocrisy." How this excuse for a representative (of anything more than a few well-rounded bankers) gets any air time is beyond us. Until then, we will make sure the collective blood pressure of our readership remains elevated thanks to such unprecedented examples of the supreme corruption in D.C. as Barney Frank. And unrelated, but even more disturbing, is Frank's statement that he doesn't mind that there haven't been prosecutions of financial crisis players. Don't worry Barney, prosecutions will come... Luckily these will happen once your immunity lapses.

Gasparino On The Implications Of The Latest Insider Trading Spectacle

Hollow Economy Recipe For Hyperinflation
By: Captain Hook




Monetary Policy—Negligence, Ignorance or Fraud?
By: The Gold Report and James West

Watch Statement By Irish PM's Brian Cowen Live Here

Brian Cowen is due to make a statement on betraying his people live any minute now. It can be seen at the following RTE livecast.

FBI Raids Diamondback And Level Global (Top 25 Holdings Presented)

In The News Today

Posted: Nov 22 2010     By: Jim Sinclair      Post Edited: November 22, 2010 at 2:22 pm
Filed under: In The News


All the perplexities, confusion and distresses in America arise not from defects in the constitution or confederation, nor from want of honor or virtue, as much from downright ignorance of the nature of coin, credit, and circulation.
–John Adams



My Dear Friends,
The action of gold is quite interesting. It is threatening to the shorts.
Forget the reasons given by experts. If gold was trading regularly as per three weeks ago it should have sold off $20 to $40 this morning.
This has to attract the attention of the shorts.
A follow through of this new relationship into the Comex morning US session tomorrow will be telling.
Regards,
Jim



Jim Sinclair’s Commentary
Think what this would be if the FASB had not sold their soul to the devil, allowing banks to carry their assets at whatever they wished them to be worth.
This is so wrong. It totally destroys the purpose of accounting and auditing as it produces an audited statement with a false value on a given date.
The excuse that the bank is going to hold crap until the end does not change crap to gold.

Top banks face $100 billion Basel shortfall: report On Sunday November 21, 2010, 8:48 pm EST
LONDON (Reuters) – The new Basel III banking rules will leave the biggest U.S. banks short of between $100 billion and $150 billion in equity capital, with 90 per cent of the shortfall concentrated in the top six banks, the Financial Times said, citing research from Barclays Capital.
The newspaper said the study by the investment banking arm of Barclays Plc (LSE:BARC.L – News) assumes the banks will need to hold top quality capital equal to 8 percent of their total assets — a one point cushion against falling below the effective global minimum of 7 percent set in September by the Basel Committee on Banking Supervision.
The regulations mean banks may need to increase their capital through retained earnings or issuing equity or they can cut their risk-weighted assets by selling off assets and cutting back riskier business.
"These shortfalls are entirely manageable … The more difficult question is what affect the new rules will have on the cost and availability of credit and bank profitability," the FT quoted Tom McGuire, head of the Capital Advisory Group at BarCap, as saying.
McGuire estimates that U.S. banks can cut their equity needs by $10 billion with each $125 billion reduction in risk-weighted assets, the FT said.
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