Posts Tagged ‘Lewis’

Where The Hell Is The Outrage?

Great post by Mish.  There’s a lot to be outraged about, and Mish provides a comprehensive list which, if you feel it, share it with friends and family. – Ilene  

Where The Hell Is The Outrage?

Courtesy of Mish

The number of articles and opinions on Goldman Sachs earnings, bonuses, and influence pedaling over the past several days is quite stunning.

Candy Expo Opens In Chicago

Many have pointed out the problems; few have expressed outrage over what is happening in general, not just at Goldman Sachs. Let’s take a look.

My take is at the end.

Letting The Dice Roll

Rolfe Winkler at Contingent Capital is writing Letting Goldman Roll The Dice.

Is Goldman really such an indispensable financial intermediary? One look at the firm’s revenue breakdown shows that it’s more casino than anything else, and some of the markets it makes still put the economy in danger.

Goldman, in other words, generates most of its revenue trading its own money and earning vigorish on customer transactions. It’s a hybrid hedge fund and bookie, with an investment bank and asset management business thrown in for good measure.

With that in mind, one is left to wonder whether Goldman was really worth saving last year. What have taxpayers received for the $50 billion worth of cash and guarantees, for giving Goldman access to the Federal Reserve as its lender of last resort?

Saving Goldman was largely about saving the derivatives market, which is so big and unstable that the death of one counterparty could mean the death of all. With big commercial banks like JPMorgan Chase in deep, saving the derivatives business was as much about protecting depositors and maintaining the integrity of the payment system as it was derivatives themselves.

To Goldman’s credit, they’ve rebuilt their capital levels faster than anyone. Their leverage ratio has fallen from 35 to 16 in less than two years, despite pressure from equity analysts to juice returns by deploying “excess capital”. But at $50 billion, the bank’s mark-to-myth, or level 3, assets remain as high as its tangible common equity, the cushion it has to absorb losses.

Wall Street and its protectors at the Fed and Treasury tell us the bailout was necessary to protect the financial system, to protect Main Street. That may be. But Main Street still owns much of the risk while Wall Street gets


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Throwing Bernanke under the bus

Here’s Edward Harrison’s take on the Bernanke hearings. – Ilene

Throwing Bernanke under the bus

throw under the busCourtesy of Edward Harrison at Credit Writedowns

In case you missed it, Federal Reserve Chairman Ben Bernanke was on Capitol Hill this morning making his case in regards to the Bank of America – Merrill Lynch deal.  The Chairman stated in unequivocal terms that he did not pressure anyone.  Rather, he stated that he cautioned Ken Lewis about the prudence of invoking a MAC clause and doubted whether Lewis could be successful in extracting himself from the deal (I agree that the MAC clause was not going to help BofA).

Whether Bernanke is justified in his defense is irrelevant at this juncture.  What is relevant, however, is that the Bank of America – Merrill Lynch deal has become a central episode for political recriminations and posturing.  As I said two weeks ago:

My take here is that the Bank of America case has become very political – and that means the blame game is going to be played. Someone — Bernanke, Lewis, Thain or Paulson — is going to take the fall.  The knives are out.

Indeed, the knives are out and it is looking increasingly likely that Bernanke will be the scapegoat.  Below is a Bloomberg News video with Rep. Edolphus Towns (D-NY), Chairman of the House Oversight Committee.  If you listen to what Towns is saying, it does not look very good for Ben Bernanke. 

Next on the hot seat: Hank Paulson.

 

Earlier today at Credit Writedowns, courtesy of Edward: 

Is Bernanke Toast? If he is, Summers is a shoo-in

conspiracy theoryHere’s a conspiracy theory for you.  As I am not much of a conspiracy theorist, I ill keep this one pretty simple. Here’s the chain of events.

Back in late September when the world was falling apart, Ben Bernanke, Tim Geithner and Hank Paulson were all desperate to keep things from unravelling.  As a result, they were pleased that Ken Lewis and Bank of America were willing to pony up  massive $44 billion to take over Merrill Lynch. They might even have encouraged the deal (i.e. we will smooth the way.  There will be no FTC hurdles. We will soft peddle investigation into Countrywide mortgage fraud, etc)

The problem, of course, was that Merrill Lynch was a bottomless pit of…
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ValueWalk

Gold Bullion Demand Hits Record Volumes in USA

By James Anderson. Originally published at ValueWalk.

With ongoing bailouts exploding the fiat US dollar’s M1, M2, & M3 supplies at record paces. It is not surprising to see physical gold bullion USA imports now hitting 21st Century high levels.

Q1 2020 hedge fund letters, conferences and more

U.S. Physical Gold Bullion Imports

Most of this recent record-sized US gold import volume is being delivered from Switzerland which has four of the five largest gold refineries in the world.

It is safe...



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Phil's Favorites

BlackRock Is Bailing Out Its ETFs with Fed Money and Taxpayers Eating Losses; It's Also the Sole Manager for $335 Billion of Federal Employees' Retirement Funds

Courtesy of Pam Martens

Laurence (Larry) Fink, Chairman and CEO, BlackRock

BlackRock, the international investment management firm run by billionaire Larry Fink, has played an outsized role in Federal Reserve bailouts of Wall Street. As it turns out, it’s also been quietly managing hundreds of billions of dollars for more than five million federal government employees in their retirement plan, known as the Thrift Savings Plan (TSP).

During the last financial crisis of 2007 to 2010, the Federal Reserve gave BlackRock no-bid contracts to manage the toxic assets held in ...



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Kimble Charting Solutions

Crude Oil Rallies 222% in 30-days, Peak Oil Time Again?

Courtesy of Chris Kimble

Can you believe that Crude Oil has rallied 222% in the past 30-trading days?

It’s hard to believe that Crude Oil is trading nearly $75 off its lows, yet the current price is around $36!

The chart looks at the Crude Oil continuous contract on a monthly basis for the past couple of decades.

Crude has spent the majority of the past 12-years inside of falling channel (1). The collapse in Crude Oil prices in April saw it hit the bottom of the channel at (2), where it created a large bullish reversal pattern. Since hitting the bottom...



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Zero Hedge

Consumer "Cash" Spending Is Much Worse Than The Reported Figures

Courtesy of ZeroHedge View original post here.

Submitted by Joe Carson, former chief economist of Alliance Bernstein

Consumer spending fell a record 13.6% in April, according to the preliminary estimates by the Bureau of Economic Analysis (BEA). But the spending numbers based on “cash” outlays are much worse.

The government’s monthly report on consumer spending (i.e. personal consumption expenditures) is a blend of actual cash outlays and estimated figures. Spending on durable and nondurable goods reflects “cash” outlays as reported by the monthly sales at retail establishments. But spendi...



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The Technical Traders

Gold & Silver "Washout" - Get Ready For A Big Move Higher

Courtesy of Technical Traders

Gold and Silver moved lower early on June 2nd and 3rd.  Our research team believes this is a “Washout Low” price rotation following a technical pattern that will prompt a much higher rally in precious metals.  This type of washout price rotation is fairly common before very big moves after Pennant/Flag formations or just after reaching major price trigger levels.

With Gold, a sideways Pennant/Flag formation has been setting up near our GREEN Fibonacci Price Amplitude Resistance Arc.  We believe the downward price rotation recently is a perfect setup for skilled technical traders to take advantage of lower entry price levels.  The GREEN Fibonacci Price Amplit...



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Biotech/COVID-19

You don't need to worry about spreading the coronavirus with cash

 

You don't need to worry about spreading the coronavirus with cash

Cash is unlikely to give you the coronavirus. Rolf Bruderer/Getty Images

Courtesy of Marilyn Roberts, University of Washington

Some people worry that cash may be spreading the coronavirus.

Earlier this year, bot...



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Chart School

Silver volume says something is near boiling point

Courtesy of Read the Ticker

Fundamentals are important, but they must show up in the chart. And when they do and if they may matter, it is a good sign if price and volume waves show a change of character.

The Point and Figure chart below is readtheticker.com version of PnF chart format, it is designed to highlight price and volume waves clearly (notice the Volume Hills chart).

Silver ETF volume is screaming at us! The price volatility along with volume tells us those who have not cared, are starting to, those who are wrong are adjusting, and those who are correct are loading up. Soon the kettle will blow and the price of silver will be over $20. 

Normally silver suffers in a recession, maybe this time with trillions of paper money being creat...

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Lee's Free Thinking

US Southern States COVID19 Cases - Let's Give Credit Where Due

 

US Southern States COVID19 Cases – Let’s Give Credit Where Due

Courtesy of  

The number of new COVID 19 cases has been falling in the Northeast, but the South is not having the same experience. The number of new cases per day in each Southern state has been rangebound for the past month.

And that’s assuming that the numbers haven’t been manipulated. We know that in Georgia’s case at least, they have been. And there are suspicions about Florida as well, as the State now engages in a smear campaign against the fired employee who built its much praised COVID19 database and dashboar...



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Digital Currencies

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

 

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

App-etising? LDprod

Courtesy of Michael Rogerson, University of Bath and Glenn Parry, University of Surrey

Food supply chains were vulnerable long before the coronavirus pandemic. Recent scandals have ranged from modern slavery ...



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Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Promotions

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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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...

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Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.