The Vicious CFA Circle

CFA (Chartered Financial Analyst) pension fund managers couldn’t understand why sub-prime paper offered a fifty basis point yield advantage over Treasury paper. They did know that they would be out of work if they failed to keep up with the short term paper benchmark yield. No question about that. The benchmark was up to its eyeballs in sub-prime paper.

So money managers swallowed their solemn fiduciary oaths and loaded up with worthless sub-prime paper. That’s how the pension funds demolished our lifetime savings.

Ten math guys invented sub-prime paper. Credit rating agencies couldn’t figure out what they were looking at so they rated this trash triple A. Securities regulators took a pass. Giant insurance companies abetted the fraud and raked in billions. Sub-prime paper destroyed the U.S. dollar and this in turn collapsed the entire world economy.

Pension funds are now running for cover into U.S. Long Treasury Bonds. But the Treasury Bond is denominated in U.S. dollars and the U.S. dollar is totally worthless as a result of the sub- prime paper debacle.

Why U.S. Treasuries? The CFA brain trust has nowhere left to run. Hoisted on its own petard. Should you be concerned? I believe so. The same credit rating agencies that once loved sub-prime paper will still attest to their unfailing affection for U.S. Treasury Securities. I’ve got a bridge …

Wall Street Facebook Carnage

So the Second Edition of our “nuclear complaint” book Repeat Performance was on the shelves at McNally Robinson Booksellers (1-800-561-1833) in early May. http://www.mcnallyrobinson.com/9780981100012/grant-sirola/repeat-performance?blnBKM=1 

In this Second Edition we reminded readers that Wall Street had already raped Government Treasuries and senior citizens world wide.  We predicted that the well-heeled Wall Street thieves would go further afield looking for more giant pools of capital to steal.

By late May another game was on.  Wall Street went after Zuckerberg and his billions of unsuspecting Facebook groupies.

The subprime rape of Governments and seniors left these entities penniless.  Today, the Facebook demographic has been financially compromised.

Ironic to realize that billionaire Zuckerberg is now just another Wall Street victim.  The Facebook brand has been dragged into a ditch.  Not too surprising that Zuckerberg is in hiding.

Where will Wall Street turn next?

The Fortress Balance Sheet

Jamie Dimon at JPMorgan tells us he has a “fortress balance sheet”. This after he announced a $2 billion loss that the street says is $4 billion. He dumped three of his most favored executives to make his point. My guess? Each left with a hundred million dollar gift to make life a bit less tedious and each will head up a new fraud that will later be spun into JPMorgan. Not a bad exit for a trio good at fleecing pensioners.

But here’s the clincher. Fortress “balance sheet”? All balance sheets went the way of the Dodo bird when the Goldman team brought us the “Off Balance Sheet” entry. JP Morgan didn’t drop $2 billion or $4 billion. It’s in the hole by trillions and so far it’s shown its shareholder victims a paltry $2 billion of the total stolen mess.

Balance Sheet? JPMorgan should have a Rap Sheet. The only reason the whole crew is not behind bars is because JPM now owns the White House, the U.S. Judiciary and all the jails. And Jamie is there to assure his JPM clients that the loss doesn’t affect them. He didn’t mention the shareholders who are now being crucified. Their journey into hell is just beginning. I guess he assumes they’re not clients.

We are glad to be old and we deliberately have no assets to attract the scumbags from JPMorgan.

Gold in a Tribal World

This is an important anniversary date for gold. In 1975 the U.S. opened its Gold Window, and since then it has been legal to buy and sell gold.

Today is also unique because the price of the yellow metal has moved in the opposite direction to equity markets and the price of oil. Gold is up and the other two are down.

I expect that this dichotomy will persist if and when the Geithner/Bernanke/Obama market manipulation scheme begins to fall apart. Money is shuffling around the world in an ever more frenzied effort to stave off the much deserved collapse of the bankrupt U.S. dollar.

Gold up and equity markets/oil down – a bearish leading indicator.

When Americans abandoned protest-ant justice (rule of law) in favour of tribal judgement, Wall Street was one of the earliest casualties. Some of us foolishly tried to defend ourselves by buying gold stocks. We didn’t stop to think that legal crime on Wall Street would spread to wipe us out in spite of a stupendous gold price move from $35 to $1642. We trusted our gold mining industry executives. Wrong! We provided their finances. They’re keeping the gold.

Only thieves prosper in a tribal world. Hang on tight if you have gold fillings.