Wall Street (metonym, not the physical tourist attraction / financial ground zero) is fundamentally a set for Dawn of the Dead. These are zombie banks – irrevocably bankrupt banks being reanimated with trodes of taxpayer credit lines jammed into their heads, eating the population left and right, turning every sovereign they bite with their toxic fraud teeth into another undead shambling Greece or Italy. If their actual stocks were ever marked-to-market, they would all instantly go under. They could easily be broken up into hundreds of smaller banks and credit unions who could do the actual work of providing capital to productive businesses (what banks are supposed to do) many times more efficiently and without the systemic risk or the looting or economic genocide etc.. The big banks and corporations have absolutely massive net negative effect on the underlying economy, The Global Well Being Index (estimated in the tens of trillions if you count all the bailouts, lost productivity due to hyperinflated fraud bubbles, etc). Each and every American is now over $300,000 in debt thanks to them, and all the money we've given in bailouts to the banks, instead of lending it to people they blow it on food and energy speculation resulting in impoverishment, use it to buy out of other failed banks becoming bigger to fail, and shower the rest on themselves. So why are they still around? Because the people in power positions to destroy them are all sucking the zombie teats. The sole purpose of their continued existence is to allow the CEOs like Jamie Dimon, like Lloyd Blankfein to continue to pay themselves the hundreds of millions of undeserved, criminally stolen bonuses that they have leeched themselves upon for over a decade. Giant zombie banks are fundamentally looting-machines, and nothing more. They could be gone tomorrow. It's a matter of how much of our economic and physical body (in the case of deadly austerity and artificial food shortage) they're going to get away with eating before we finally decide to double tap them.
This is essentially like if you or I threw on a doctor uniform, forged up some hospital ID material, waltzed into the ER and started pretending to perform quadruple bypasses and brain surgery. Of course we’d botch most of the surgeries with absolutely no training or experience, killing hundreds of people (pension/bank account looting, bailouts, inflation, austerity, Greece, Italy, famine) but as long as we can hold up the veneer and get paid six figures, who cares, right? The nurses and hospital staff (politicians, economists, media) applaud our valiant efforts, our attempts to “save the economy”. But as the patients keep dying, we blame it on them: the government forced us poor megabanks to give poor people and minorities subprime NINJA loans! These unhealthy Greeks and Americans didn't take our prescribed dosage of Austerity medicine! The blood is on the hands of the poor and the public sector. We need to be paid more money, given more freedom and more powerful bonesaws in order to do our job properly. The patient will surely die without more bailout and fiat currency IVs. 700 billion ccs, stat! Oh darn, Lehmans gone, another one bites the dust. This is a sad day for all of us surgeons. Let’s make sure this never happens again, by giving us more money.
Getting rid of these homicidal psychopaths masquerading as surgeons is an absolute no-brainer, like the equivalent of curing cancer. The same goes for all the biggest names on Wall Street. It's a matter of how many people, savings, and economies we'd like to see murdered before we've had enough.
Virtually all of the major banks are bankrupt. The Lehman, Bear Sterns, the Madoffs, the MF Globals, these are just the tip of the iceberg, the tiny fraction of visible matter in the Fraudiverse that got blown up cause they tripped up or crossed the bigger mob bosses while there remains hundreds or thousands more firms and corporations still sneaking around through shadow banking and shadow accounting. Not only all the usual suspects, the JP Morgans, the Goldman Sachs and other major investment banks, but General Electric, IBM, Warren Buffet all regularly engage in this kind of accounting fraud. When regulators come in to record your end of the quarter liabilities, you move it off of your balance sheet for a few days with the complicity of another corrupt hedge fund or broker or a banker or corporation. They’re all based on accounting fraud. MF Global just happened to botch their peek-a-boo accounting the past quarter, or failed to pay off some regulator at the SEC, and so they were toasted. But you could pull the tail on almost any of the big banks and their stock all goes to zero.
Despite the “officially” reported 160 billion JP Morgan is supposedly “worth”, it is absolutely a dead firm walking if you priced in all the ‘off-balance-sheet’ toxic waste refuse dredged through the debt megabubble that they’re still lugging around. All the 78 trillion in illusory horse feces derivatives – equivalent to you or I writing on a cocktail napkin an insurance certificate for a trillion dollars and then declaring that as “assets. If you put a hundred million troy ounce silver bullet through the heart of the werewolf, shove the basilisk tooth of capital depletion and risk-unveilment through the Dark Financial Lords’ own Holcruxes keeping it alive indefinitely, JP Morgan and many other firms would evaporate into flecks of ash, blown away in a colony on a breeze, like a waning bad dream. It really will not take a lot, given the extremely thin ice they are already on in terms of capital, liquidity, popular image, and the fact that their Ponzi games running out of suckers to con, real economy to drain, as people are waking up to what’s really going on. JPM is in extremely deep shit as they had significant counterparty risk tied up with MF Global, and is most recently having to buy up MF’s 4.7% stake in the London Metal Exchange. And why do they need to do this? Because they need to defend their massive but slipping stranglehold on the physical silver market. Then let's raise that a 2.1 billion dollar lawsuit for *gasp* fraud in their mortgage backed securities . Of course, the first substantial legal action against a major firm has to come from a pissed off German counterparty, rather than the US regulators or the DoJ. Then add to that litany of red ink the fact that it has come out now that JPM engaged in client fund co-mingling to the tune of $16 billion; a massive blow. Sunlight on the hidden risk, burning this financial vampire alive.
Capital can flow, but it is a two-way-stream. There are major players out there, activist hedge funds, good and honest investment managers who see the malignancy, unsustainability, and outright abomination that is the current iteration of our fraud-debt-fiat based financial system. These entities and individuals are actively flash flooding their capital in a contraforce against these predatory Ponzi institutions. Already Anonymous Analytics has fought fire with fire, outing hidden risk and toxicity, then applying reverse-capitalism to blow up the fraudsters with their own weapon of choice: shorting. They've already taken down Chaoda, one of the Hong Kong Exchanges' largest and longest running frauds as a proof of concept. We’ve just seen what happens to so called “foreclosure mills” when their true nature and practices are exposed. Goldman Sachs has already laid off tens of thousands of employees, and many of Lloyd Blankfein’s bankers won’t even be seeing any of their cherished bonuses this year. This is due at least in part to the negative attention and scrutiny raised by individuals and groups about Goldman's practices and situation, in turn leading to the unwinding of their "machine"ations and pyramid schemes exacerbated as the debt can continues to fill with cement. Even the Occupy-supported “Bank Transfer Day” and similar actions have a big knock on effect, especially as the larger clients, the 1%ers, the owners of hotel chains with kids getting maced at UC Davis, the Gerald Celente marquee-name investors getting stuck with “margin calls” are being moved to follow the trend: which you can bet has the big firms shaking in their sealskin boots. Because they are all Ponzi schemes, and like any Ponzi scheme, once enough people start pounding on the door demanding "Show Me The Money!" and start pulling it out, the scheme unravels.
Then there’s Silver Vigilante #1, CEO Eric Sprott of Canada-based Eric Sprott Asset Management, announcing his purchase of 1.5 BILLION dollars worth of silver bullion. Given that the previous megapurchase from Sprott last year of $580 million sent silver soaring 177%, and the fact that this purchase is nearly *three times* that size, this will be like a bombardment of Jericho missiles on JP Morgan’s gold and silver price manipulation edifice. If the proportionate upswing is even half of the boom last year, it will almost certainly be the silver steak through the heart of JP Morgan, with immense knock-on effects repercussing throughout financial Mordor. Not to mention Chinese and Indian purchases of the precious metals which are up several hundred percent in the past month alone, and the increased purchasing at the grass roots level AKA the Silver Liberation Army. The thing with this strategy is that the vampire cannot simply turn into a bat, squirt some black derivative ink and perform a “capital shift” or reduction of exposure to a precious metal bull market. Firstly, because letting go of the silver short will take the lid off the precious metal Pandora's Box leading to a sinking of the dollar and JPM destruction, yet if they hold the short, they are forced to take tens, hundreds of billions in short losses ALSO leading to JPM destruction: they're caught between a bullion rock and a short hard place. Secondly, the toxic funds they have are massively illiquid – because who the hell is going to buy a swimming pool of nuclear waste? That was the plotline of the 2008 credit crunch -- and the only ones they can effectively offload them to are the (formerly) sovereign governments, the 99% taxpayers, like Greece, like Ireland, like Spain, like Italy, like the US whose whore politicians collude with bankers to allow the continued economic Hiroshimas (AKA ‘bailouts’) in exchange for a cut of the blood money. Or as in Greece and Italy, outright coup-ed out by "technocrats" (coughbankers). But even these “atrocity sinks” are dwindling and the gangsters holding the timebombs cannot shift their risk at a rate fast enough to counteract the rate at which it is being exposed, and the rate at which gold and silver vigilantes are tearing down their dark fortresses and Dracula coffins made of fiat, derivative, and other nightmare hallucinations. The bad capital flow, the malignant ectoplasm wraith is being cornered between the crossed ghostbuster streams of the risk-raking vampire banker hunters, the silver-bulleted financial activists, the pissed off half-vampire Blades in the 1% who are being robbed blind by the Frosts, and the result?
Wall Street announces massive *structural* layoffs of more than 200,000. Bonuses decimated, the fifty million end-of-year goes the way of the Dodo. One economist guesses that Wall Street won't regain jobs "until about 2023." Now we’ll see who cries for those who laughed haughtily, waved diamond champagne flutes, sprinkled McDonald’s applications on the seas of the homeless, jobless, and futureless “Plebians” Occupying the sidewalks around the lofty Two Towers of CME and NYMEX. The Wall Street in-fighting fiascos bleeding into the news cycle are the final shuffling of the deck chairs, the ship rats scrambling tooth and nail for the last morsel of food before the vessel sinks. No doubt fervent prayers are being recited to shrines of Milton Friedman and Ayn Rand and the rest of the pantheon in the Presidential Suite of the Plaza Hotel tonight.
CNBC is reporting that there are now clients running out of the markets entirely because they do not believe their customer funds are safe. Just as I said a page ago. The potential gains of moving your funds virtually anywhere in the market are now outweighed by the risks of losing it all to some Corzine or Jamie Dimon or other fundsucking parasite who can drain you with impunity. We’re at the start of a global liquidity run. There will be rallies. Finance clowns like Kramer or CNN anchors will waddle onto TV, inform you of the impending bull market in Goldman Sachs shares and What You Can Do To Help Save The Dollar! But ultimately, capital will begin “flowing” in tsunamis away from Wall Street and big banks and into gold and silver. This will create a feedback loop in which the dollar see-saws in the opposite direction, in turn drying up the dark pools exposing more zombie banks, creating more incentive to dive towards the stratospheric hard currencies. And no matter how hard Bernanke cranks up his monetary firehose, even if he gets his Weimar on and blows a Googleplex dollars our of his ass sending the price of a gallon of milk to a billion dollars; an ounce of silver will simply be worth 15 trillion dollars, gold at 150 trillion. Fiat will be tossed back into the recycle bin of history, just like it did centuries ago after the French iteration of our plight when their government buried the Francais in paper assignats from Pigalle to Marsaille, after which their 99% started beheading kleptaristocrats left and right with the guillotine. (not that we’ll see literal decapitations, but *decapitalization* of the Louis XIV and Marie Antoinettes has already begun). Whether it’s two weeks, three months, or a year, the end-game has begun, and now it’s only a matter of time.
Sure, the MSM, themselves debtslaved to the bankers, underwater to their eyeballs and reliant on Wall Street's blessing for their next episode will scream Apocalypse, Now! Will call it the end of the world, just like Hank Paulson threatened congress in 2008, just like the EFSF threatened Greece in 2011, just like we’re told hundreds of thousands of times by almost every news report and pundit, in the post-modern version of Orwell’s truthification machine. THE SKY WILL FALL IF WE DON’T SAVE THIS TUMOR! The truth is, this will be the collapse of the bankrupt and decrepit Gormenghast, the implosion of the financial castle Wolfenstein, and the rebirth of the global economy as decades of debt, deceit and general malignancy are cleared from the system. Will some rats escape the sinking ship? Probably a few stragglers will, just like a few 1%ers and IBM and Coke moguls managed to Shanghai some of their Third Reich blood money out of collapsing Nazi Germany, set up a pina colada stand in Argentina. But the greater swath of the cancer will be excised; the core engine of the Death Star which allows it to function and wreak havok – the edifice of debt, fraud, and fiat – will be destroyed. Whether we learn from the mistakes – break up the too big to fails, return sane leverage limits, separate corporation and government, get ACTUAL COPS on the financial beat, etc – is up to us as a nation and as a world.
Capitalism may be predicated on crisis, but until we’re magically transported to Marxian Utopia, the death and devastation of crisis can and should be shifted away from the innocent villagers and onto the barons who instigate the crises. The other option is to sit there, the looters in chief make bank, as your home sinks below the waves, your pension ablaze, your job crumbling beneath a wage arbitrage contagion, and complain that crises happen. As the heart of Occupy has always been: you cannot rely on governments, corporations, nor “experts” to solve your problems, because they are all the problem. You have to do it yourself. Just as a democracy in which people check out to Dancing with the Stars and remain unengaged results in no democracy, so a financial-economic system in which people just check out, let the default suit-n-tie manage their money, and remain oblivious results in a broken and exploitative financial-economic system. That AND no democracy as a hostile takeover is performed resulting in monetarchy: rule by the biggest money. That means investing in yourself, in your own financial education before you check a box on your job app or W-2 and start dropping savings into a fund managed by “experts” whose goal is not to make you money but to inflate their own wealth by giving you the *illusion* that they're making you money, often at the expense of your pension, 401k, or other fund, as everyone including the white-shoe crowd are painfully discovering.
And if you haven't already, it's time to start getting yourself out of paper. If you can that is: if you've still got your money digitized in the numerati's supercomputers somewhere in any kind of managed fund, it's highly probably that your money is already gone, vanished into monetary Never-Never Land (probably was used to build some banker's gold-sided corporate tower). Madoff was just the tip of the iceberg: the entire system is Madoff, through and through, as MF Global and JP Morgan clients and all therein subsumed owners of small businesses, 401ks, pensions, fireman and nurse bank accounts that woke up to find their life savings disappeared are only now realizing. It is highly likely that the monthly statements you get in the mail from any large firm are lies; the family jewels have been replaced with plastic replicas by the thieves but you don't know it yet. Get the hell out of all paper, digital and otherwise: that's not just stocks, but IRAs, 401ks, and yes, even those green "Federal Reserve Notes" wadded up in your wallet. Yes, not even the money in your bank account is safe. Once the Euro is finished toasting to ash, the dollar is next in line, and bet that the printing that allows the tables to be run till the house of cards collapses will only accelerate as it did in Germany half a century ago, in France three centuries ago, at the end of every fiat scam, ending always with a return to hard money. The only currency that will be worth anything, the only protagonist that will survive this zombie horror movie, the massacre that is the Day of the Dead Global Financial and Monetary System are the assets without any counter-party risk, and those are gold and silver.*
There's your Zombie Bank Survival Guide. Don't say you weren't warned.
EDIT: some recent and vindicating news:
CNBC in a cash crunch . Looks like the bankers' Goebbelian price propaganda arm and sucker-maker is flailing as the body goes into critical condition. Looks like Goldman Sachs has run out of scraps to toss to their ponzi-fluffing court jester, Jim Cramer. Coincidence that this is occurring immediately after major bonus cuts and 200,000+ firings on Wall Street? I think not.
Groupon scam strips billions from dupes
Don't say I didn't warn you.
[QUOTE] originally posted by TwiliteMinotaur, November 14, 2011:
I suppose you're going to start taking stock pointers from Jim Cramer and shift your nestegg into Groupon.[/QUOTE]
Uhh, that's good.
(*And that's PHYSICAL gold and silver: the actual precious metal that ETFs and paper gold/silver are supposed to point to have already been ripped off by the pirates, and the booty has been buried in their own treasure islands. Just ask Gerald Celente how that paper bullion strategy worked out.)