Saturday, February 8, 2014

"As We Seek A Safe Place For Capital" Part 1

 "As We Seek A Safe Place For Capital"    Part 1
02/08/2014
Post From KTFA By Memphis » February 7th, 2014, 8:11 pm   •  [Post 8] 

The Sovereign Debt Crisis is behind this?

Memphis:  Great find water guy, Ty. :handshake2:

This post is not dinar related but is directed at the growing number of people who are developing a global mindset. I have been following this story because it has value. There has been much press on this lately and some other news that is directly related but only to those who are truly L@@King (we'll connect those dots below ).

The world is changing and beneath the surface of THIS press release lies a much bigger story, the under lying symptom (sickness) that is driving it and THAT is important to us all as we seek a safe place for capital.
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Read More Link On Right

Allow me to insert my notes within the article here. There is much to be said and it needs to (hopefully) be presented in a thoughtful manner.

Below is the article as a quote ( in italic) from WaterGuy's post then I will follow it up by re-posting the news piece with commentary added.

Please follow closely the use of [brackets] where my notes are added to the body of the article.

waterguy101 wrote on February 6th, 2014, 8:13 pm:

The foreign-exchange trading business was in upheaval across Wall Street as senior executives resigned and others were fired amid an expanding probe of possible currency manipulation.

Benjamin Lawsky, superintendent of New York’s Department of Financial Services, asked more than a dozen firms including Deutsche Bank AG (DB), Goldman Sachs Group Inc. (GS) and Citigroup Inc. (C) for documents on their currency-trading practices, said a person with knowledge of the matter.

 Deutsche Bank, the top foreign-exchange trader, fired four dealers after an internal probe, people with knowledge of the move said. Goldman Sachs lost two partners while Citigroup said its foreign-exchange chief will leave in March.

Lawsky’s investigation is at least the 12th opened by authorities in Europe, the U.S. and Asia since Bloomberg News reported that traders at the world’s largest banks colluded to manipulate the benchmark WM/Reuters rates.

Even staff who aren’t being probed are reassessing career plans as the scandal forces firms to change fundamental practices as revenue falls.

The Libor Scandal Sets Off a Wave of Probes

“Currency traders are now sitting in an unprecedented and unwelcome spotlight,” said John Purcell, chief executive officer of Purcell & Co., a London-based executive-search firm. “Regulatory pressures, scandals and attendant reputational issues are making it a much more challenging environment.”

Photographer: Jin Lee/Bloomberg

Benjamin Lawsky, the superintendent of New York’s Department of Financial Services, has...

Benjamin Lawsky, the superintendent of New York’s Department of Financial Services, has authority over financial institutions chartered in his state, including several non-U.S. banks that do business in the country.

Photographer: Jin Lee/Bloomberg

Benjamin Lawsky, the superintendent of New York’s Department of Financial Services, has authority over financial institutions chartered in his state, including several non-U.S. banks that do business in the country.

At least 16 traders have been suspended or put on leave amid the global probe. Citigroup last month fired European spot trading chief Rohan Ramchandani.

http://www.bloomberg.com/news/2014-02-05/currency-market-unsettled-by-trader-exits-as-lawsky-opens-probe.html

Memphis:  Ready? Sleeves rolled up? :thug:

The foreign-exchange trading business was in upheaval across Wall Street as senior executives resigned and others were fired amid an expanding probe of possible currency manipulation.

Memphis [note: The big banks are firing people and top level execs are resigning. If this does not cause us to pause and ask questions then we are asleep at the wheel! These guy's respect nothing and the above ACTIONS on their part is already an admission of....guilt.

What is it that they have been doing behind closed doors for a very long time and further? Why are their indiscretions being made public? Why now? ]

Benjamin Lawsky, superintendent of New York’s Department of Financial Services, asked more than a dozen firms including Deutsche Bank AG (DB), Goldman Sachs Group Inc. (GS) and Citigroup Inc. (C) for documents on their currency-trading practices, said a person with knowledge of the matter.

Deutsche Bank, the top foreign-exchange trader, fired four dealers after an internal probe, people with knowledge of the move said. Goldman Sachs lost two partners while Citigroup said its foreign-exchange chief will leave in March.


Memphis [note: Mr. Lawsky is a state banking regulator. He is (forgive the pun) "the law". How's that for irony? This is a very big probe into the shadow banking world, the investment side of the big banks that is seldom spoken of publicly and certainly never seen by the public.

Have you noticed how hard it is to get a bank loan these days for ANYTHING? Even student loans are being rejected because the banks will not lend with interest rates so low as there is no incentive to do so.

Politicians and even the FED do not recognize that there is always a cause and effect to every action and this fake market of zero interest rates has actually ENCOURAGED the big investment banks to be even more reckless in their speculations.

Note again here that these banks are firing senior people after only INTERNAL probes. These guys are scared and for good reason. What is being revealed to the world is a gross example of unfettered greed. A level of greed that you cannot begin to imagine. More on that later...]

Lawsky’s investigation is at least the 12th opened by authorities in Europe, the U.S. and Asia since Bloomberg News reported that traders at the world’s largest banks colluded to manipulate the benchmark WM/Reuters rates....

Memphis [note : the banksters have been manipulating FOREX (foreign exchange rates) of the world's currencies and profiting on this. They have been rigging the game at the highest level and none of the New York regulators have come close to trying to stop this game.

 The inbreeding in New York is so vast that no one has dared to bring suit against a big bank.

Such a law firm would be black listed and their practice ruined! Not only can gov 't be pointed to as the cause for this unfettered greed (i.e. The repeal of Glass- Stegall under Clinton, suppressed interest rates, etc) but this immense display of man's greed has gone unchecked ALSO because of government!

Answer this: What is the natural deterrent ( the force that stands opposed) to man 's greed? The answer is FEAR.

The fear of loss, of being wrong, and losing everything, is the natural "check and balance" that prevents reckless behavior. But gov't has given the big banks cover by bailing them out for these reckless trades that go wrong.

Do not think for a minute that all of these "traders" have great minds! The level of reckless and foolish betting is on a level that would make you sick.

These people are largely idiots that have been profiting at insane levels with no barriers for years because they have had a seat at the table where the rules are made and THAT is the story here. The rules are changing....

If you are in the camp that believes this will lead to a pure system where the banks will all turn from being Mr. Potter and suddenly become George Bailey and we will all dance in fields of flowers with unicorns? Sorry, think again.

What is manifesting is simply rooted in the sovereign debt crisis that is sweeping the world.

The days of government's stepping in to settle the massive debts incurred by these banksters is.....over.

The banks are being served notice and this scandal (and it 's step brother named LIBOR) are the evidence. Early projections are that this manipulation in FOREX will dwarf that of the LIBOR probe that is bringing billions in fines against the worst offenders.

Also, these events are natural progressions in the unfolding cycle that we see playing out. The cycle of the fall of all developed nations who have recklessly borrowed against their yet to be born generations.

As proof of my assertion that we are not heading to utopia here with gumdrops and lollipops for all here is a marker to look for:

If high level bankers go to jail? Then I was wrong. If however, you see banks paying fines (a slap on the wrist) then It is still business as usual with some restraint being forced upon these guys INTERNALLY to actually make good bets.

Gov't regulation is never the answer, the market will pick the winners and losers based on performance. But I digress....]

Even staff who aren’t being probed are reassessing career plans as the scandal forces firms to change fundamental practices as revenue falls.

Memphis [note: "reassessing career plans" Doesn't that seem a bit extreme? Let me digress here and say (again) that our ability to ask the right questions makes all the difference in the pursuit of critical thought.

America has a huge unemployment problem. Much larger than reported. I have followed the numbers for over four years as reported weekly and my best CONSERVATIVE estimate is in excess of 25% of the workforce with over half of Americans on some form of gov't assistance. But these guys are looking for a career change? To do what? :popcorn:

Clue #1 - the above quote: "...to change fundamental practices..." Tells us that the rules are changing, that in the future they will have to work much harder to find true value in the market and actually answer for their mistakes when trades go bad.

Clue#2 - Fear for their lives. In the past two weeks (leading up to some initial testimony from the banks) there have been several unexplained suicides from high level bank executives from the very same banks who are being fingered in this probe.

There is a connection here, I have no doubt on that point and neither do the co-workers of these (now dead) high level targets.]

The Libor Scandal Sets Off a Wave of Probes

“Currency traders are now sitting in an unprecedented and unwelcome spotlight,” said John Purcell, chief executive officer of Purcell & Co., a London-based executive-search firm. “Regulatory pressures, scandals and attendant reputational issues are making it a much more challenging environment.”


Memphis [note: The proper question to ask is why are governments going after this publicly? No one said a word when CitiBank manipulated the bond market in Greece a few years ago, playing with the wealth of an entire nation of people as if they were pawns in a game simply because they could.

They shorted Greece and raped the unsuspecting people of a vast fortune and yet nothing was made public? Did anyone go to jail over that one? Nope, there is a deeper issue at play here. Let me paraphrase the above words: "attendant reputational issues..."

what they are really saying here?

"Our gross misdeeds are being brought forward in some measure and we have to show repentance in any way possible and then claim ignorance when all else fails. Beyond that, we are going to have to actually research opportunities in the future to avoid losses. We are not happy..."]

Memphis [note : in the coming months many more evidences will unfold (across Europe and the US) as state and local municipalities begin to crumble under the weight of their debt burdens and the massive pension liabilities that can never (and COULD never) be paid.

They will all follow the same play book as did Detroit. Bankruptcy is the only way out as they cannot print money and a total default is the only solution. These will be important markers to follow.

To close here, banks will no longer be bailed out by sovereign gov't that has no money and we as individuals must not be found behind the curve on this trend.

Going forward it will not be the taxpayer who is stuck with the bill. On the surface this seems a good thing right? Think again...

The tab is going to be laid at the feet of the banks themselves. THEY will have to pay for their own misdeeds. Again, seems a good thing right? Think again...

This means that the investors in the bank will be left holding the bag. As a bank becomes not only insolvent but ALSO their liquidity dries up they will begin to simply close their doors and seek protection thru the courts.

THIS is where the investors will be left holding the tab as they see their money simply go poof. As of January 01, 2014 a major change has taken place in America regarding our relationship with our banker.

Your money in the bank is no longer treated as a deposit.

You are legally assigned as an investor in your bank
and further you take a subordinate position to the primary investors meaning that they get paid 1st and then you get paid....last. In Cyprus the people only lost about 60% of deposits so let's think positive here....]

Blessings,  Memphis

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