Please find below my interview with Max Keiser and our discussion regarding the Greek crisis and continued banker price suppression and manipulation schemes executed against gold and silver to prop up the US dollar and prevent a US dollar collapse.
Submitted by Tyler Durden on 06/06/2011 09:42 -0400
While Greece may or may not receive Bailout #2 "any minute now", Greek depositors refuse to wait for the resolution. In April, bank deposits declined for the 4th consecutive month according to the central bank, a 1.2% decline M/M. From Reuters: "Bank of Greece data showed deposits fell to 196.8 billion euros ($288.2 billion) from 199.2 billion in March. A shrinking deposit base has added to the strains of Greek banks, which have become reliant on ECB funding for their liquidity needs as access to wholesale funding remains mostly shut on sovereign debt concerns.
Deposits have shrunk by about 13 billion euros since the beginning of the year. In 2010, they contracted by 29.1 billion euros or 12.2 percent." In addition to the Reuters breakdown, a look at the
source data indicates that overall deposits held by "Domestic Residents" dropped by €5.4 billion: the culprit was the Central Government which withdrew €3.1 billion in April, bringing the total from €14.3 billion to €11.3 billion. As usual, the best real-time proxy, if not completely accurate, to gauge the flow of capital in/out of Greek banks is to keep an eye out on the EURCHF. Today, it is a little higher. Over the past year, it is, well,
not...
A harbinger of what the front office doors of various investors in Sino-Forest will soon look like...
Submitted by Tyler Durden on 06/06/2011 08:07 -0400
In a move that is sure to send the infamous Fed "economist" (Ph.D., never forget)
Kartik Athreya over the edge, Obama's nominee for the Fed Board, after unsuccessfully trying to enter the one circle that is just less exclusive than the Goldman partnership ranks for over a year, has decided to pen an Op-Ed in the NYT titled "When a Nobel Prize Isn't Enough", and disgusted with the fact that his utterly worthless Nobel prize in something or another can't even buy him one seat with those who decide the price of money, has pulled his nomination in utter disgust. "Last October, I won the Nobel Prize in economics for my work on unemployment and the labor market. But I am unqualified to serve on the board of the Federal Reserve — at least according to the Republican senators who have blocked my nomination. How can this be? " How indeed: could it be that, gasp, Nobel awards are merely a honorary award in groupthink, presented to anyone who perpetuates the status quo with little regard for actual merit-based contribution (one needs only recall Obama's Peace prize just as the President is contemplating opening up a 4th, or is that 5th, war front?). Most importantly:
nobody tell Krugman his one validation of his life's work, has just been downgraded to junk.
As Goldman stock probes new lows every day, and
in passing news has just announced it would sell its largely irrelevant Litton Loan mortgage servicing unit to Ocwen financial (which was named so after the founders could not come up with a name so they inverted Newco, but that is a story for another day) for $264 million but retain any potential fraud liability, the firm is now expected to release its own trove of documents expected to "defend" the firm from the various allegations presented in the Carl Levin 639 page report. The report has already served as the
basis for a subpoena lobbed at Goldman, and which some predict will have a much lower threshold of proving guilt courtesy of New York's "
Martin Act" has pushed the stock to a one year low. It was only inevitable that Goldman would come up with some jiggering of its numbers to prove that it was in fact innocent. We wonder if the report will also provide an explanation
for the following words by one Deeb Salem, a Goldman trader in the structure products group: "
We began to encourage this squeeze, with plans of getting very short again." Swenson, Salem’s supervisor, sent e-mails in May 2007 urging traders to offer prices that will
“cause maximum pain” and “have people totally demoralized.” In interviews with the committee, Salem and Swenson denied attempting a short squeeze, the report said." Regardless, we can't wait to see the latest attempt to obfuscate the public opinion with the mixing of apples and oranges. Alas, Goldman may be surprised to find that the general population is not quite as dumb as it expects this time around, and there will be those who will gladly cut through the fluff of any posted rebuke within minutes.
More color from Muddy Waters' Carson Block on why he believes the now infamous Sino-Forest is a ponzi scheme: "It's a Ponzi scheme in that the company perpetually issues securities in order to fund itself. Even by its own fraudulent numbers, the company does not generate any free cash and has not done so in sixteen years. Were the company be unable to issue additional securities to fund itself, it would collapse. That to me is the definition or epitomizes the definition of a Ponzi. "In this situation, the company appears to be investing for the 23rd century. It's sixteen straight years burning cash, no guidance as to what the rationale is to acquire so many trees so far ahead of customer orders. This is taking a capex fraud--we have found several of these in China--it's taking it to the next level where you're not constrained by the walls of a factory and no one is able to really see the movement of physical goods. It could grow to be infinite provided that the capital markets continue to fund it."
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