JP Morgan and Bank of America? Where did you hear that first?

JP Morgan May Take Over Bank Of America ?

There is a rumor circulated on Wall St. that JP Morgan (NYSE: JPM) will take over Bank of America (NYSE: BAC) within the week. The government will support the deal with a $100 billion investment in preferred shares issued by the combined entity. Alternatively, the government may guarantee the value of a large pool of Bank of America assets. The word is that Treasury Secretary Geithner has discussed the transaction with JP Morgan CEO Jamie Dimon.The “merger” would completely destroy the value of BAC’s common shares.
The government feels that the deal may be necessary as Bank of America struggles unsuccessfully to close several transactions to bolster its balance sheet. The Wall Street Journal reported that Business Insider speculated that the financial firm will need to raise $200 billion which would be another possible event that would wipe out common shareholders.
Read more: JP Morgan May Take Over Bank Of America - 24/7 Wall St. http://247wallst.com/2011/08/23/jp-morgan-may-take-over-bank-of-america/...

JP Morgan and Bank of America? Where did you hear that first?

Welcome to the big leagues folks. You must be in good hands hear. Right? After all, I'm not seeing many haters show up anymore saying, "Bank of America and JP Morgan, never." "I can never see that happening..." Where was the first time anyone heard that JP Morgan is considering Bank of America?

Right. Let me rewind to where most of Wall Street, if not the world was exposed to this 'rumor' Click here to hear this at 1 min and 40 seconds...

And In The Category For Biggest Conspiracy Theory We Have....

Submitted by Tyler Durden on 08/23/2011 - 21:27 BLS Bureau of Labor Statistics Nielsen None ratings Two and a half years after consistently and methodically exposing one conspiracy after another (and by the way, once it is proven to be a fact, it is no longer a conspiracy), we were stunned to find that the biggest conspiracy theory is none other than... Zero Hedge. "Zero Hedge, for example, is one that lots of hedge funds look at, lots of money managers look at, and the guy that runs it has their ear. Now I'm not saying that he is not doing his own proprietary work, but, people like to plant stories in there. [cue ominous silence]." TA DUN DUN. Gee - one does learn something new every day. Also, to anyone who still doesn't get it, please send your dodecatuple secret "plant" stories to plant@zerohedge[.]com along with your non-refundable payment made in physical gold Zimbabwean dollars, to be delivered to our paper street headquarters. We certainly would prefer it if the drop man is Bank of America's James Mahoney. 

The Truth Behind The FDIC's "Problem Bank Shrinking" Report

The number of insured banks declined from 7,574 to 7,513.  So the number of banks covered by the report declined.  And that makes sense since 22 failed and 39 were absorbed via mergers.  So the number of problem banks declined by 23, and 22 banks failed.  I assume once a bank fails it goes of the "problem" list since it is not covered by this report?  So at best, 1 bank moved off?

 

 

 

Moody's Downgrades Japan From Aa2 To Aa3

What was that word Freud used when you are a weak, pathetic, corrupt, powerless, piece of anacrhonistic filth and instead of doing the right thing (for fear of losing your job or worse), you lash out at a weaker and irrelevant substitute? Oh yes, projection.

 

 

Marc Faber Explains How Even The "Greatest Bear On Earth" Gets It Wrong

Marc Faber was on Bloomberg TV dispensing his traditional sarcastic and sardonic wit in copious quantities. Among the traditional topics touched upon are stocks and specifically trading ranges, "I think a lot of people will say the markets formed a double low and we have some technical indicators that are going to turn positive, so we could rally around 1,250, but as I said before, for me, we reached a high on May 2, 2011. 1,370 on the S&P--that we will not go through", on Operation Twist part 1 (already announced) and part 2 (coming): "To some extent we are in midst of QE3 already, because by announcing the Fed will keep zero interest rates until the middle of 2013, they basically encourage financial institutions to borrow short-term and to buy 10-year Treasuries" on a contrarian outlook on stocks: "I am the greatest bear on earth, but if you compare Treasury bond yields and equities, equities look reasonably attractive", on why Insider "buying" just as we have said repeatedly, is far too much ado about nothing: "Compared to all the selling in the last six months the buying is relatively muted" and lastly, like a gracious loser, Faber admits he was wrong and Rosenberg was right "David Rosenberg was right and I was wrong. The 30-Year has not made a new low.  The low in December 2008 was 2.53%.  Now we're around 3.4%"... although with a caveat: "Basically we have an artificial market." Alas, no strategic observations on what particular precious metal one's girlfriend would appreciate the most in the current gold-platinum parity environment.






Harvey Organ, Tuesday, August 23, 2011

Big Raid on Gold and Silver with options expiry Friday/Lousy Richmond Fed numbers

Harvey Organ at Harvey Organ's - The Daily Gold and Silver Report - 1 hour ago

Good evening Ladies and Gentlemen: The banking cartel decided it was time for a massive raid today as gold and silver were getting quite frothy and they had to cool the jets on these precious metals.  This Friday is options expiry month for both silver and gold whereby all in the money options will be given a futures contract.  In gold they will receive a Sept gold and in silver they will

 

 

 

Mid-August Complete Hedge Fund Performance Update

If your last name starts with 'Paul' and ends in 'son', we suggest you skip the post. For everyone else, we may as well call this latest HSBC hedge fund weekly update the schadenfreude yellow pages. Who would have thought that with all the traditional lowers, that Rentec's RIEF B would be taking names at up 20% YTD.

Guest Post: Exiting The Eye Of The Storm

Doug Casey writes in: "I’m not sure that many people really ever believed there was a recovery under way. Wall Street acted like there was – but only somewhat, since banks never started lending again. But unemployment has remained high; it’d actually be about twice the official 9% level, if it was calculated the same way it was 30 years ago. And outside of the price collapse of certain asset classes – like real estate – the cost of living has increased greatly for most people; the calculation of the government’s CPI is as corrupt as its unemployment numbers. I think it’s a mistake to talk about a double dip in the economy; we entered the Greater depression in 2007 and are still in it. A “jobless recovery” is not a recovery. The only thing that’s recovered is the stock market, to some degree. Aside from government hocus-pocus, the mirage of corporate earnings, and foolish investors wanting to believe it was safe to get back in the water, things have not gotten better. And they are about to get much worse."

Kazakhstan central bank will buy all domestically produced gold

Jim’s Mailbox

August 23, 2011, at 3:23 pm
by Jim Sinclair in the category Jim's Mailbox |  Print This Post |  Email This Post

Objectivity versus Emotional Bias  
CIGA Eric


New-home sales are falling. Nominal and real prices are falling. Yet, denial of these trends remains nearly as strong as ever. The game of money demands cold objectivity despite our tendency towards emotional biases.
 New Home Sales And Change YOY, SA

U.S. Median Home Price (MHP) And MHP to Gold Ratio:

Headline: New-home sales fall, 2011 could be worst year yet
Sales of new homes fell for the third straight month in July, a sign that housing remains a drag on the economy. If the current pace continues, 2011 would be the worst year for new-home sales in nearly half a century.
Sales fell nearly 1 percent in July to a seasonally adjusted annual rate of 298,000, the Commerce Department said Tuesday. That’s less than half the 700,000 that economists say represent a healthy market.
Last year, 323,000 homes were sold — the worst year on records that go back to 1963.
While new homes represent less than one-fifth of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs and $90,000 in taxes, according to the National Association of Home Builders.

Source: finance.yahoo.com

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In The News Today

August 23, 2011, at 12:16 pm
by Jim Sinclair in the category In The News |  Print This Post |  Email This Post

Jim Sinclair’s Commentary

The following was posted August 11th as Gold passed $1764.

Dear CIGAs,
1. Those holding gold to hedge the systemic risks of the Western financial world simply stay in your position.
2. Traders lighten up your positions as gold approaches the next two Angels.
3. No market fails to have reactions at some point.
4. Reactions in this market will be deep, but brief when they occur.
5. The undervaluation of good gold shares has passed manic.
6. Utilization of some of your gold profits into good gold shares is pure logic.

Respectfully,

Jim





National debt has increased $4 trillion under Obama
August 22, 2011 6:34 PM
The latest posting by the Treasury Department shows the national debt has now increased $4 trillion on President Obama’s watch.
The debt was $10.626 trillion on the day Mr. Obama took office. The latest calculation from Treasury shows the debt has now hit $14.639 trillion.
It’s the most rapid increase in the debt under any U.S. president.
The national debt increased $4.9 trillion during the eight-year presidency of George W. Bush. The debt now is rising at a pace to surpass that amount during Mr. Obama’s four-year term.
Mr. Obama blames policies inherited from his predecessor’s administration for the soaring debt. He singles out:
“two wars we didn’t pay for”
“a prescription drug program for seniors…we didn’t pay for.”
“tax cuts in 2001 and 2003 that were not paid for.”
He goes on to blame the recession, and its resulting decrease in tax revenue on businesses, for making fewer sales, and more employees being laid off. He says the recession also resulted in more government spending due to increased unemployment insurance payments, subsidies to farms and funding of infrastructure programs that were part of his stimulus program.
At the first town hall meeting of his Midwestern bus trip last week, Mr. Obama told an audience in Minnesota that “the debt problem is real and the deficit problem is real.”

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Jim Sinclair’s Commentary

The message got to the mint.

All US Mint Numismatic Gold Coins Suspended
Posted by Mint News Blog | Filed Under: US Mint
Monday, August 22, 2011
This morning the US Mint has suspended sales of all remaining numismatic gold coin offerings. The move comes as the market price of gold has jump another $35 to nearly $1,890 per ounce. Prior to the suspension, products were priced based on an average gold price in the $1,750 to $1,799.99 range.
The US Mint’s pricing policy covering most numismatic gold coins allows for price changes to take place as frequently as weekly based on the average market price of gold based on the London Fix prices from the previous Thursday AM to the current Wednesday AM.
Pricing changes have generally taken place mid-morning Wednesday when all of the data points were available. The US Mint has reserved the right to suspend sales early “in the event that the selling price of United States Mint gold bullion products begin approaching the sale price of the gold numismatic products.” They invoked this option for the first time two weeks ago, and apparently for the second time today.
This year, pricing increases will have taken place on ten separate occasions on February 16, March 2, April 13, April 27, May 25, July 20, July 27, August 10, August 17, and likely later this week on August 25. Only one price decrease has taken place on May 18.
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