THE WHOLE WORLD IS WATCHING...

Whatever do they have to hide?
It's not their money...

I notice that the word
"TRUST"
isn't on there anywhere...

The Creature from Jekyll Island...
What's Dead (Short Answer: All of It)...
Fed payouts to OTC derivative winners via their brokers

MORE KOOL-AID, ANYONE?

"Flash forward: Real life, Washington, new leaders, a new Congress, old wizardry. Be forewarned: No matter who's elected president, America will soon see a massive statistical curtain pulled back, exposing a con game of historic proportions. And when that happens, you and I will suffer another ear-splitting global meltdown, bigger than today's housing-credit crisis, dragging us deep into a recession and bear market for years...

How bad is it? 'The real numbers ... would be a face full of cold water,' says Phillips. 'Based on the criteria in place a quarter century ago, today's U.S. unemployment rate is somewhere between 9% and 12%; the inflation rate is as high as 7% or even 10%; economics growth since the recession of 2001 has been mediocre, despite the surge in wealth and incomes of the superrich, and we are falling back into recession.'"

Megabubble Waiting for New President in 2009

'Numbers racket' exposes potential disaster for economy, markets

By Paul B. Farrell

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"Collapse is the risk now, and those words are no longer alarmist or poppycock. A major seizure is on the horizon, as prices have interfered with viability of commerce, especially internationally. Households face much higher costs just to arrive to work sites. Employers face much higher costs just to maintain profitability. Suppliers face much higher costs just to keep production lines flowing. Schools, hospitals, and other public facilities face higher costs in order to maintain function. The first failures and seizures will likely occur in California, where the greatest home loan abuses took place, where the biggest nastiest and most painful home price declines have taken place, where the biggest state government budget cuts have been ordered."

--Jim Willie

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UBS (NYSE:UBS) has told members of its former private banking team
responsible for rich US clients not to travel to America.
Could get arrested for something, I guess.
Laws are such a pain in the bank.

AMERICA BARELY MEETS A MARGIN CALL

And this is just the first of hundreds - thousands - of moneyshifts, most of which the paying public will never even hear about until their shares in the US (i.e. the dollar) are worth pennies, before the freeprinting currency reaches its intrinsic value and surviving US banks are nationalized.

There is blood in the water, as the sharks begin to eat their own...

The transaction is all the more odd in that Bear Stearns' purchaser J.P. Morgan is the world's largest holder of derivatives!

Foreign investors are withdrawing their support of the currency...

For a view of where all this may be headed, see the Weimar experience...

BTW, the current derivative nominative total is over 500 TRILLION dollars...

And The Street on Welfare...

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Ads for sites like this are increasing...

JAPAN BANKS ODDLY UNWILLING TO FLING GOOD MONEY AFTER BAD

This is fascinating. If this were you or me asking for money on these terms we'd be laughed out of the bank.

Citigroup, Bank of America and JPMorganChase, holders of major quantities of derivatives in which, one way or another, your bank account/pension fund may be invested, and who are losing big time as a result (right now we're only feeling the spray of the tsunami), are calling upon other banks around the world to put money into a fund to rescue whichever poor banks that in their mastery of financial acumen threw big money (i.e., yours) onto these mountains of derivatives and then sold them on, all the way to the last fool, just ahead.

Now they want everybody to chip in and rescue them. Though the proposed fund would comprise but one droplet in the tsunami of derivative-linked debt that is now looming over the world, you gotta admire the chutzpah, the sheer, imitation brass of it. The biggest holders of derivatives? Citigroup, Bank of America and JPMorganChase. ("Today, more than ever before in the short history of derivatives, one leading United States institution effectively IS the derivatives market. This company, as we will explore in this essay, is the American giant superbank JPMorganChase (www.JPMorganChase.com)."

But for reasons to do with the economic vision and loss-avoidance generally associated with financial institutions, big Japanese banks are saying: do we really want to throw this much more money out the window?

A good explanation of derivatives

Krugman's take

The coming collapse of the modern banking system
"The banks don't have the reserves to cover their downgraded assets and the Federal Reserve cannot simply monetize their bad bets. There's no way out."

Dec 22 update: Banks Decide Not to Go Ahead With Super-SIV Fund, WSJ Reports...
They'll make the Scrooge announcement on Christmas eve, to take advantage of extended holiday amnesia... Mortgage holders, fund investors and pensioners should be this crafty...

THE STUFF IS NOW HITTING FANS EVERYWHERE...

Hope your equity is out of the system and there's not a fan near you...

The worldwide deception that has created this mass and propelled it toward the revolving blades may set a new world record for venality.

[Update: Global Derivatives Market Expands to $516 Trillion]

DARK AGES

"Bill Gross, the chief investment officer of Pacific Investment Management, said US mortgage delinquencies and defaults would rise in 2008. 'There are $1 trillion worth of sub-primes, Alt-As [self-certified] and basically garbage loans,' he said, adding that he expects some $250bn in defaults. 'We've only begun to see the pain from rising mortgage payments,' he added. Brian Gendreau, an investment strategist at ING, commented: 'Financials are 20 per cent of the S&P 500 and if that sector doesn't do well all bets are off. People just don't know what’s on the balance sheets.'"

Of course they don't mention the other 99% of the iceberg, as those at the top get their money out. Sub-prime is the buzz word at the moment, but next comes the $20-40 trillion in credit default OTC derivatives (now beginning to hit the fan) - nobody knows how much, really - and teetering above them, high over the global economy, maybe another 300 trillion in further derivatives... (the annual world production is valued at ca. 65 trillion once-upon-a-time dollars.)

And to think those garbage derivative AAA raters and marketers to the public are not (yet) being prosecuted for the biggest fraud in history! And who will pay? The public, as always.

Advice from Jim Sinclair, as of November 6: "How Can You Be so Complacent?"