Archive for 2010

No, The Big Banks Have Not “Paid Back” Government Bailouts and Subsidies

Courtesy of George Washington

Washington’s Blog

The big banks claim that they have paid back all of the bailout money they received, and that the taxpayers have actually made money on the bailouts.

However, as Barry Ritholtz notes:

Pro Publica has been maintaining a list of bailout recipients, updating the amount lent versus what was repaid.


So far, 938 Recipients have had $607,822,512,238 dollars committed to them, with $553,918,968,267 disbursed. Of that $554b disbursed, less than half — $220,782,546,084 — has been returned.


Whenever you hear pronunciations of how much money the TARP is making, check back and look at this list. It shows the TARP is deeply underwater.

Moreover, as I pointed out in May, the big banks have received enormous windfall profits from guaranteed spreads on interest rates:

Bloomberg notes:

The trading profits of the Street is just another way of measuring the subsidy the Fed is giving to the banks, said Christopher Whalen, managing director of Torrance, California-based Institutional Risk Analytics. “It’s a transfer from savers to banks.”


The trading results, which helped the banks report higher quarterly profit than analysts estimated even as unemployment stagnated at a 27-year high, came with a big assist from the Federal Reserve. The U.S. central bank helped lenders by holding short-term borrowing costs near zero, giving them a chance to profit by carrying even 10-year government notes that yielded an average of 3.70 percent last quarter.


The gap between short-term interest rates, such as what banks may pay to borrow in interbank markets or on savings accounts, and longer-term rates, known as the yield curve, has been at record levels. The difference between yields on 2- and 10-year Treasuries yesterday touched 2.71 percentage points, near the all-time high of 2.94 percentage points set Feb. 18.

Harry Blodget explains:

The latest quarterly reports from the big Wall Street banks revealed a startling fact: None of the big four banks had a single day in the quarter in which they lost money trading.


For the 63 straight trading days in Q1, in other words, Goldman Sachs (GS), JP Morgan (JPM), Bank of America (BAC), and Citigroup (C)

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Weak US jobs data results in inflation-trade positioning while news from Merkel & Bernanke spur action in respective currencies

Courtesy of naufalsanaullah

Original piece here.



Courtesy of 4closureFraud

“A thief who steals a check payable to bearer becomes the holder of the check… but does not become the owner of it.”

Below is an order from a Florida court that speaks to a major issue we have been screaming about for well over a year now, if not two. Just because you hold the note, does not necessarily make you the owner of the note with the right to enforce.

The way I see it, as a non attorney, is the laws are very clear on this issue but are being ignored to further marginalize the “deadbeats” and prop up the “banks.”

Now, don’t just take my word on this, there are others with similar opinions as well…

If the courts would just let us get to the documents requested in discovery, it would show that in the majority of the cases, even if they produce the original note, they do not have the right to enforce.

For example…

BofA Mortgage Morass Deepens on Promissory Notes Issues

Investor Impact

The Kemp case is also being examined by lawyers for investors in mortgage-backed securities. Owners of the bonds have been cooperating in an effort to force sellers to take back loans, saying they were misled about their quality. The Wizmur ruling may give investors an additional opportunity to push for mortgage buybacks on grounds that the bonds weren’t created in keeping with securitization contracts.

It may mean investors who think they bought mortgage- backed securities bought securities that aren’t backed by anything,” said Kurt Eggert, a professor at Chapman University School of Law in Orange, California.

Countrywide Deals

The securitization contracts related to the Kemp loan, and at least two other Countrywide mortgage-bond transactions, didn’t assign the company the additional role of document custodian for the trust. Countrywide, as the servicer, can take back the notes from the trustee when needed to manage foreclosure actions and mortgage payoffs, according to the contracts.

One risk to investors when notes remain with sellers acting as custodian is that an acquirer or creditor of those companies could walk in and take the notes, the banks that disclosed the practice in mortgage-bond prospectuses warned.

Let’s repeat. “An acquirer or
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Graham Summers’ Weekly Market Forecast (Euro hype over? Edition)

Courtesy of Phoenix Capital Research


Last week’s explosive rally was due to three factors:


1)   Stocks came perilously close to breaking down so the PPT stepped in

2)   A bullish falling wedge pattern in stocks

3)   Euro options expiration/ ECB intervention


Regarding #1, stocks came right on the verge of breaking below their 50-DMA. Given the technical nature of the stock market rally (the market hasn’t traded based on fundamentals in months) this would have heralded a major decline.


With the Fed and the US Government’s claims of a recovery hinging largely on the fact stocks are up, the powers that be couldn’t possibly allow this, so what do we get? A ramp job that takes stocks up nearly 4% in three days.



From a technical picture, this move was predicted by the bullish falling wedge pattern that formed over the preceding three weeks (see the chart below). Of course the only reason this pattern formed in the first place was because “someone” stepped in and propped stocks up every time they came close to breaking below 1175.


Regardless, the ramp job that occurred Wednesday through Friday satisfied this pattern. As I write, the S&P 500 has failed to best its early November intraday high (1227). A move above that level could portend a greater breakout, however, this will all hinge on the Euro.



Last week was options expiration week for the Euro. Already oversold, the currency was due for a bounce. Options traders took advantage of this to gun the Euro higher when rumors swirled that the European Central Bank would potentially issue a larger bailout.


Nevermind that the rumors proved false or that the European Union continues to collapse, in…
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Goldman Issues Apology #3 For Its Economic Renaissance Call

Courtesy of Tyler Durden

Just released – apology #3 from Jan Hatzius on his ill-timed “golden age” call. We expect many more. We almost feel sorry for the German strategist and the replacement of FRBNY’s Bill Dudley. For our most recent roasting of Hatzius (and there have been several), read here.

From Goldman Sachs: Now What

1. Nice timing on our GDP forecast upgrade!  The November employment report was a disappointment, and there weren’t a lot of redeeming features buried underneath the headlines.  Private sector payroll growth fell back to +50k, the slowest pace since January 2010.  The household survey was also weak, with a rise in the unemployment rate to 9.82% and a drop in the employment/population ratio to 58.18%, just a hair above the cycle low seen in December 2009.  The jobs report followed higher initial jobless claims on Thursday and a soft manufacturing ISM survey on Wednesday.
2. So are we nervous about our shift?  Not really.  For one thing, our new forecast does not say that the US economy is now off to the races.  We are not predicting above-trend growth until the second quarter of 2011, so it is hardly a huge surprise that the labor market is still struggling (indeed our own forecast for Friday’s number was somewhat below consensus).  More importantly, the report leaves the rationale for our forecast upgrade unaffected, which is that GDP growth is firming modestly at a time when the short-term impact of inventories and fiscal policy has turned from positive to negative.  This says to us that the growth rate of underlying final demand—GDP excluding the effects of inventory changes and fiscal policy—is improving.  And the news on the demand/service side of the economy has remained fairly encouraging, with auto and same-store retail sales both stronger than expected, an upward revision to core capital goods orders, and a good nonmanufacturing ISM survey (interestingly with a 3-year high in the employment index).
3. What lies behind the demand improvement?  In our view, the main reason is an incipient decline in the private sector financial balance—i.e., the gap between the total income and total spending of US households and businesses—and a slowdown in the speed of private sector deleveraging.  To a first approximation, the private sector balance is the “flow” equivalent to the “stock” of private sector debt.  When the private sector balance is below…
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LeaKeD WiKi SPeeCH

Courtesy of williambanzai7

Just obtained this incredible leaked draft of Hillary’s speech about unauthorized WikiLeak disclosures…


Full Document Viewable: Here

[Source: The Other]


Under the Hill


Courtesy of williambanzai7, writing at Zero Hedge 

Just obtained this incredible leaked draft of Hillary’s speech about unauthorized WikiLeak disclosures…


Full Document Viewable: Here

[Source: The Other]


Under the Hill

Tags: ,

Cash4Gold – The Other (And Far More Hilarious) Side Of The Story

Courtesy of Tyler Durden

By now, everyone has heard accusations that Cash4Gold is nothing but a predatory site, seeking to “steal” the gold of people in distress for a painfully low price. Often times these stories involve Glenn Beck in some capacity. Of course, there is always “the other side” to every story. Below we provide just one such “other” side. It just so happens that the side is about as funny as it gets.

Courtesy of Bruce Krasting

100% Sure Thing?

Courtesy of Bruce Krasting

Bernanke did himself and the American people a great disservice tonight. He said that he was 100% certain that “He” could contain the consequences of his policy of quantitative easing. No person in a position of responsibility should make such bold statements. There is always risk.

Bernanke’s TV fireside chat was a bomb as a result of this gross misstatement of the risks of the Fed’s monetary policy. There is a “zero” chance that QE will end badly? Please, that is idiotic and insulting. The thousands of people around the world who have stood up and said it is voodoo economics are all wrong? Talk about hubris.

I’m not going to write the article documenting the Fed’s prior mistakes. To suggest that they will not err this time around is too much of a stretch. Ben should have acknowledged that there is risk. That he and his mates don’t sleep at night knowing they have crossed a line to the dark side of monetary policy. I wanted to see a humble Ben. One who said that he is facing a daunting task, one where the risks of action and inaction are substantial. But he chose to brush it all off. He is either blind to history (that he claims to study), he is lying or he made a boastful statement of his powers that are totally unjustified.

History is unkind to those who look into the future with myopic eyes and see the outcome of an uncertain world as 100% certain. Ben made some history tonight, but we won’t know about it for a few more years. Then we will be looking at Ben’s video with both a laugh and a cry.

For the record. Ben is not printing money. He is monetizing debt. He is, in effect, financing the current deficit of the government. He is actively intervening in the bond market. There is no limit that has been established for this policy. Ben said tonight he would do more if it suits him. Monetizing debt is a desperate act. That we are doing it will make us desperate.

In my opinion QE is not necessary and exposes the global economy to a variety of risks. There will be little benefit to the US economy. We will have a long-term headache as a result. Ben’s persistence…
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Swing trading virtual portfolio – week of December 6th, 201o

This post is for live trades and daily comments. PLease click on "comments" below to follow our live discussion. All of our current trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here


Swing trading virtual portfolio


One trade virtual portfolio


Zero Hedge

Auto Shares Surge As Fiat, Renault Confirm Merger Talks

Courtesy of ZeroHedge. View original post here.

With President Trump in Japan for a state visit and most of Europe headed to the polls to vote in the quinquennial EU Parliamentary elections, there was enough news to keep market watchers occupied during what was supposed to be a quiet holiday weekend in the US. 

But on top of these political headlines, on Saturday afternoon, the news broke that Italian-American carmaker Fiat Chrysler had approached France's Renault with a merger proposal that would leave the shareholders of each carmaker with half of the combined company, in a tie-up that would create the world's third-largest au...

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Phil's Favorites

Trump and the problem with pardons


Trump and the problem with pardons

Courtesy of Andrew Bell, Indiana University

As a veteran, I was astonished by the recent news that President Trump may be considering pardons for U.S. military members accused or convicted of war crimes. But as a scholar who studies the U.S. military and combat ethics, I understand even more clearly the harmful long-term impact such pardons can have on the military.

My researc...

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Insider Scoop

Jefferies Sees 60-Percent Upside In Aphria Shares, Says Buy The Dip

Courtesy of Benzinga.

After a red-hot start to 2019, Canadian cannabis producer Aphria Inc (NYSE: APHA) has run out of steam, tumbling more than 31 percent in the past three months.

Despite the recent weakness, one Wall Street analyst said Friday that the stock has 30-percent upside potential. 

The Analyst

Jefferies analyst ... more from Insider

Kimble Charting Solutions

DAX (Germany) About To Send A Bearish Message To The S&P 500?

Courtesy of Chris Kimble.

Is the DAX index from Germany about to send a bearish message to stocks in Europe and the States? Sure could!

This chart looks at the DAX over the past 9-years. It’s spent the majority of the past 8-years inside of rising channel (1), creating a series of higher lows and higher highs.

It looks to have created a “Double Top” as it was kissing the underside of the rising channel last year at (2).

After creating the potential double top, the DAX index has continued to create a series of lower highs, while experiencing a bearish divergence with the S...

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Chart School

Brexit Joke - Cant be serious all the time

Courtesy of Read the Ticker.

Alistair Williams comedian nails it, thank god for good humour! Prime Minister May the negotiator. Not!

Alistair Williams Comedian youtube

This is a classic! ha!

Fundamentals are important, and so is market timing, here at we believe a combination of Gann Angles, ...

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Digital Currencies

Cryptocurrencies are finally going mainstream - the battle is on to bring them under global control


Cryptocurrencies are finally going mainstream – the battle is on to bring them under global control

The high seas are getting lower. dianemeise

Courtesy of Iwa Salami, University of East London

The 21st-century revolutionaries who have dominated cryptocurrencies are having to move over. Mainstream financial institutions are adopting these assets and the blockchain technology that enables them, in what ...

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DNA as you've never seen it before, thanks to a new nanotechnology imaging method

Reminder: We are available to chat with Members, comments are found below each post.


DNA as you've never seen it before, thanks to a new nanotechnology imaging method

A map of DNA with the double helix colored blue, the landmarks in green, and the start points for copying the molecule in red. David Gilbert/Kyle Klein, CC BY-ND

Courtesy of David M. Gilbert, Florida State University


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More Examples Of "Typical Tesla "wise-guy scamminess"

By Jacob Wolinsky. Originally published at ValueWalk.

Stanphyl Capital’s letter to investors for the month of March 2019.

rawpixel / Pixabay

Friends and Fellow Investors:

For March 2019 the fund was up approximately 5.5% net of all fees and expenses. By way of comparison, the S&P 500 was up approximately 1.9% while the Russell 2000 was down approximately 2.1%. Year-to-date 2019 the fund is up approximately 12.8% while the S&P 500 is up approximately 13.6% and the ...

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...

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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism


The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...

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Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.


This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...

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Free eBook - "My Top Strategies for 2017"



Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:


·       How 2017 Will Affect Oil, the US Dollar and the European Union


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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

Learn more About Phil >>

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About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>