This Is How To Kill JPM's CIO Operation
While
JPM may or may not have succeeded in burying its deeply humiliating
CIO fiasco at the expense of two things: i) a loss of up to 25% in recurring net income and ii) Jamie Dimon proudly throwing numerous of his key traders under the regulatory bus as scapegoats because it took the firm until July 12 to
realize that its entire CDS book was criminally mismarked, thus
confirming a "weakness in internal controls" (a statement not only we,
but Bloomberg's Jonathan Weil vomits all over),
the truth is that one way or another, Jamie Dimon will find a way to
reposition his prop trading book somewhere else, even if it means far
smaller and less obtrusive profits for the next several years. Yet there
is a way to virtually make sure that Jamie Dimon is never allowed to trade as a hedge fund ever again,
and in the process risk insolvency and yet another taxpayer bailout.
Ironically, it is JPMorgan itself that tells everyone precisely what it
is.Even Dilbert Gets It
Does Central-Bank Gold-Buying Signal The Top Is Near?
Central banks have added a net of 1,290 tonnes since the fourth quarter of 2008. This total excludes China and other nations that don't regularly report their activity, as well as countries that have been surreptitiously buying their own production. That's a lot of gold buying. One has to wonder whether so much buying may in fact signal a top for gold. After all, a number of prominent analysts have claimed for some time that gold is in a bubble and that it's all downhill from here. Not so fast. Like many mainstream reports, looking at the short-term picture usually leads to erroneous conclusions. Let's put central-bank purchases into historical perspective.
Negative Multiplier On Resource Producers
Admin at Marc Faber Blog - 1 hour ago
When the chinese economy slows down, their demand for raw materials also
slows down, prices come down and it has a negative multiplier effect on
these resource producers. - in a recent podcast
Related: Freeport Mcmoran (FCX), Vale ADR (VALE), Rio Tinto ADR (RIO),
Mechel OAO ADR (MTL)
*
*
*Marc Faber is an international investor known for his uncanny predictions
of the stock market and futures markets around the world.*
Moody's lowers credit on Italy to Baa3 two notches above junk/Italy's 10 yr bond yield rises above 6%/Consumer confidence in USA falls again.
Harvey Organ at Harvey Organ's - The Daily Gold and Silver Report - 2 hours ago
Good
morning Ladies and Gentlemen:
Gold closed up today to the tune of $36.70 to $1591.60. Silver followed
suit rising by 20 cents to $27.34.
Late last night, Moody's lowered the boom on Italy as their credit
rating falls to Baa3 two steps above junk.
Once Fitch joins the party then the Italian banks will need to fork over
more collateral as their LTRO swaps are hugely underwater. Also in the
by Jim Willie, Gold Seek:
In recent public articles, the USTreasury Bond bubble was described,
supported by Interest Rate Swaps to produce artificial demand and to
create an illusion of a flight to safety in toxic USGovt Bonds. A Black
Hole phenomenon was described, which will suck the capital life out of
most assets, celebrate the USTBond rally, and accelerate the recession
in the USEconomy. Numerous endgame signals were described, all alarming
in their own right, not a single signal being from the realm of
normalcy. Extreme danger is the warning. This week consider just a
handful of danger signposts, all screaming loudly of systemic breakdown.
They are all deeply disturbing signposts that complement the endgame
signals with a scattered pox of symptoms on the landscape. The Jackass
is firm and rigid in maintaining that ugly forecast made in late 2008,
dismissed by many as foolish and off the mark. No longer. The USGovt
debt default in the form of a massive forcible debt restructure is being
considered by creditors in charge. The USEconomy is imploding, and
Money Velocity is falling. The true protection in both an inflationary
spiral and a deflationary spiral is GOLD. The current storm center has a
mix of both, a fast rise in the monetary expansion coupled with a
painful decline in the value of all things paper. Never overlook that
home prices are a consequence of paper games, not the hard asset ploy. The USDollar is being pushed off its coveted throne as global reserve currency.
A system based upon GOLD is coming, designed to manage trade
settlement. The paper kings hope to impose a new and better paper bond
vehicle, and a new and better paper banking depot, but they are failing
miserably. They are on the extreme defensive. Their captains are cutting
deals to stay out of prison. Justice might actually be served. Watch
the LIBOR lawsuits, which will be a different kind of mushroom cloud.
Read More @ GoldSeek.com
In recent public articles, the USTreasury Bond bubble was described,
supported by Interest Rate Swaps to produce artificial demand and to
create an illusion of a flight to safety in toxic USGovt Bonds. A Black
Hole phenomenon was described, which will suck the capital life out of
most assets, celebrate the USTBond rally, and accelerate the recession
in the USEconomy. Numerous endgame signals were described, all alarming
in their own right, not a single signal being from the realm of
normalcy. Extreme danger is the warning. This week consider just a
handful of danger signposts, all screaming loudly of systemic breakdown.
They are all deeply disturbing signposts that complement the endgame
signals with a scattered pox of symptoms on the landscape. The Jackass
is firm and rigid in maintaining that ugly forecast made in late 2008,
dismissed by many as foolish and off the mark. No longer. The USGovt
debt default in the form of a massive forcible debt restructure is being
considered by creditors in charge. The USEconomy is imploding, and
Money Velocity is falling. The true protection in both an inflationary
spiral and a deflationary spiral is GOLD. The current storm center has a
mix of both, a fast rise in the monetary expansion coupled with a
painful decline in the value of all things paper. Never overlook that
home prices are a consequence of paper games, not the hard asset ploy. The USDollar is being pushed off its coveted throne as global reserve currency.
A system based upon GOLD is coming, designed to manage trade
settlement. The paper kings hope to impose a new and better paper bond
vehicle, and a new and better paper banking depot, but they are failing
miserably. They are on the extreme defensive. Their captains are cutting
deals to stay out of prison. Justice might actually be served. Watch
the LIBOR lawsuits, which will be a different kind of mushroom cloud.Read More @ GoldSeek.com
Trader Dan Interviewed at King World News
Trader Dan at Trader Dan's Market Views - 3 hours ago
Please click on the following link to listen in to my regular weekly radio
interview with Eric King of King World News on the Markets and Metals Wrap.
*http://tinyurl.com/899oua7*The New York Times And Socialism
In
lieu of the election of Socialist President Francois Hollande and a
Socialist Party collision as the majority in France’s Parliament, the New York Times recently
asked “what does it mean to be a Socialist these days, anyway?”
According to The Grey Lady, socialism today is “certainly nothing
radical” and simply meant the “the emancipation of the working class and
its transformation into the middle class” during its heyday.
Essentially the article categorizes the contemporary socialist as one
who is a rigorous defender of the welfare state. The piece quotes
French journalist Bernard-Henri Levy as saying “European socialists are
essentially like American Democrats.” It even accuses center-right
political parties in the West of being quite comfortable with
socialism’s accomplishments. So is the New York Times correct?
Is socialism just a boogeyman evoked by the “fringes” to scare the
public into questioning the morality and efficiency of the welfare
state?Greece Flails About, Troika Inspectors Paint “Awful Picture,” Merkel Draws A Line, German Industry & Voters Back Her
07/13/2012 - 21:32
In my previous report, I provided a mix of legacy builders. Some were
scholars. Some were businessmen. One was a Sunday school teacher. All
had influence on many people.
The United States once had safe, beautiful cities that were the envy
of the entire world, but now many of them are degenerating into rotting,
festering, crime-ridden hellholes. All over the country there are
communities where crime, drugs, gangs and human trafficking have gotten
completely and totally out of control. Once upon a time you could walk
down the streets of most U.S. cities at night without much fear, but
these days there are many large American cities where it would be
absolutely crazy to wander around the streets at night unless you want
to be mugged, shot or sexually assaulted. If you end up at the wrong
place at the wrong time you might end up being abducted by a human
trafficker or have your face eaten off by a crazed drug addict high on
bath salts. With each passing day our cities degenerate just a little
bit more, and life in many of our worst communities truly has become a
living hell. Sadly, this comes at a time when the United States has the
highest incarceration rate in the world by far. We have tried to lock
as many people away as possible and our communities are still turning
into hellholes. So where do we go from here?
China’s been in the spotlight all week. And it will finish off that
way too. By around 12pm Australian eastern time today, China’s chief
bean counters/statisticians/magicians will present a whole bunch of data
to the world. 
“Eventually the bond markets will say, ‘Oh my God,’ and instead of
paying governments to let them lend them the money, like you now see
with negative short-rates in various countries around the world, the
bond market will say, ‘Hey, you are going to cheat us. We know you are
going to cheat us, now we want you to compensate us for that.’ 
It is a sight which many older generations thought they would never see in this country again.
Swarming like ants across the rooftop, members of the Royal Artillery
were pictured setting up the weapons. Troops carried truckloads of
equipment up the 17-storey block ready to assemble it to protect the
Olympic Games from terrorist attack.
Wow. If you live long enough, you’ll see some truly gross things in
politics, but Mitt Romney’s work this past week “courting black support”
was enough to turn even the strongest stomach.
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