The JPM Buyout Of BSC Is The 911 Of Capitalism
Tuesday, 18. March 2008, 05:06:21
Stock Market Report For Monday March 17, 2008
Today was the 911 of capitalism as the investment banking sector traded by the ETF, KCE suffered a fractal break in value and fell 6% in reaction to JPMorgan Chase acquiring Bear Sterans.
Bloomberg's Craig Torres reports that JP Morgan "pawned off undesireable assets" to the Federal Reserve to get the loan backing to finance its acquisition of Bear Stearns: "The securities backing a $29 billion Federal Reserve loan to Bear Stearns Cos. consist primarily of "mortgage-backed securities and related hedge investments".
The overall US Markets, ETF, VTI fell 1% today. Energy shares fell 3% on oil prices falling 4%.
The EUR/JPY fell reflecting a terrific unwinding of Yen Carry Trade investments, as the Yen soared to 102, and the Euro blasted to 157, and the US Dollar fell yet again, as currency traders moved in response to the Federal Reserve actions of assisting JP Morgan acquire failed investment banker Bear Stearns, BSC; it's nationalization of investment banking, America's Northern Rock if you will.
The Neocons have resisted nationalization of health care, but when it comes to Wall Street interests, it's a completely different story.
The chart of the EUR/JPY shows it falling through a symmetrical consolidation triangle.
The unwinding Yen Carry Trade caused a disinvestment from the emerging markets as reflected in the chart of the Proshares 200% inverse of emerging markets ETF, EUM, up 3% in a breakout from a cup and handle pattern rising to 84.
Many are fleeing to safety of gold and away from the Financial Armageddon that is coming from the unraveling of derivatives and the deleveraging of investments globally: gold in the futures market rose from $995 to $1030 before settling at $1003 in trading on Monday March 17, 2008.
The derivatives beast places at counter party risk all those who have thought they were wise by investing in a credit default swaps, CDS.
There has been a fear of investing in corporate debt; this is seen in the parabolic rise of ratio of the 7 to 10 year government bond relative to investment grade corporate debt, IEQ:LQD.
The yield curve measured in ETFs and the yield curve measured in rates continuing steepening to an all time high: this is inflationary and will eventually be destructive to bond wealth.
The Risk of Loss Of Cash As Well As Investment Capital Is Unparalleled In History
Eddy Elfenbein provides the chart of borrowing from the Federal Reserve; this suggests that the banks are insolvent; and suggests that cash accounts such as money market accounts, money funds, checking accounts, and dollar denominated short selling accounts at brokerages cannot and will not be honored at face value in the event of a "financial emergency".
A "financial emergency is coming". Capitalism was wiped out today by the capital market providers 6% fall in value. The United States has been a capitalistic society, and the world for a large part has been one also; a capitalistic society cannot exist without capital market providers; being that they were wiped out today by stock market trading, capitalism is dead, dead and dead. A "financial emergency" can be the only outcome of today's 6% loss of value in the capital market providers.
The Leaders' Joint Statement that came forth from the March 31, 2006, Cancun Summit provides a framework agreement for North American emergency management to handle a disaster, whether natural or man-made; and most definitely an economic disaster is coming.
Given today's failure of capitalism, the SPP, will ease the transition from capitalism to state corporate rule of the resources and people of the North American continent: the coming enforcement of the SPP places one's capital at great financial risk.
Corporations and individuals should not be invested in stocks of any kind, even precious metal or natural resource stocks, as well as not having any money in any U.S. dollar cash position such as a savings account, a checking account, a money market account, a short term bond fund, a TIP bond ETF or TIP bond fund, US Treasury Bills, an ETF, a mutual fund variant thereof, or a $1 money fund; and even a dollar denominated short selling account.
A Wealth Preservation Strategy Is Recommended
Currency traders view the Federal Reserve lowering of the interest rates charged to banks as debasing to the currency; the US Dollar fell again today; corporate finance will continue experience a terrific loss of value as the run on the dollar continues: it behooves a corporation and individuals not to have a dollar denominated balance sheet and investment portfolio.
John Browne writes in 321gold article The Problem Spreads that for alert Americans, investment attitudes must undergo a sea change. Instead of thinking in terms of return 'on' capital, investors will be well advised to think about return 'of' capital! Greed should give way to extreme prudence.
It is becoming increasingly clear that any investors, who wish to protect their wealth, should invest in non-dollar denominated financial assets and, where possible, hold them (legally, including paying tax) offshore, in order to avoid any risk of the future imposition of American exchange controls.
If one believes that gold and gold alone is the sole means of wealth preservation and management, the two greatest risks now to the investor are: one, not having 100% access to one's cash or money wealth in a system wide financial emergency, and two, the risk of investing in gold and seeing it depreciate in value until it rises again due to a hord of investors seeking safety in hard metals.
Related Articles
Fed Fails To Halt Debt Meltdown
The Great Depression 2 Starts Now
Bear Market Update April 12, 2008
The Bloody Knife Used to Gut Bear Stearns???
Lenders Of The Last Resort Unite
Today was the 911 of capitalism as the investment banking sector traded by the ETF, KCE suffered a fractal break in value and fell 6% in reaction to JPMorgan Chase acquiring Bear Sterans.
Bloomberg's Craig Torres reports that JP Morgan "pawned off undesireable assets" to the Federal Reserve to get the loan backing to finance its acquisition of Bear Stearns: "The securities backing a $29 billion Federal Reserve loan to Bear Stearns Cos. consist primarily of "mortgage-backed securities and related hedge investments".
The overall US Markets, ETF, VTI fell 1% today. Energy shares fell 3% on oil prices falling 4%.
The EUR/JPY fell reflecting a terrific unwinding of Yen Carry Trade investments, as the Yen soared to 102, and the Euro blasted to 157, and the US Dollar fell yet again, as currency traders moved in response to the Federal Reserve actions of assisting JP Morgan acquire failed investment banker Bear Stearns, BSC; it's nationalization of investment banking, America's Northern Rock if you will.
The Neocons have resisted nationalization of health care, but when it comes to Wall Street interests, it's a completely different story.
The chart of the EUR/JPY shows it falling through a symmetrical consolidation triangle.
The unwinding Yen Carry Trade caused a disinvestment from the emerging markets as reflected in the chart of the Proshares 200% inverse of emerging markets ETF, EUM, up 3% in a breakout from a cup and handle pattern rising to 84.
Many are fleeing to safety of gold and away from the Financial Armageddon that is coming from the unraveling of derivatives and the deleveraging of investments globally: gold in the futures market rose from $995 to $1030 before settling at $1003 in trading on Monday March 17, 2008.
The derivatives beast places at counter party risk all those who have thought they were wise by investing in a credit default swaps, CDS.
There has been a fear of investing in corporate debt; this is seen in the parabolic rise of ratio of the 7 to 10 year government bond relative to investment grade corporate debt, IEQ:LQD.
The yield curve measured in ETFs and the yield curve measured in rates continuing steepening to an all time high: this is inflationary and will eventually be destructive to bond wealth.
The Risk of Loss Of Cash As Well As Investment Capital Is Unparalleled In History
Eddy Elfenbein provides the chart of borrowing from the Federal Reserve; this suggests that the banks are insolvent; and suggests that cash accounts such as money market accounts, money funds, checking accounts, and dollar denominated short selling accounts at brokerages cannot and will not be honored at face value in the event of a "financial emergency".
A "financial emergency is coming". Capitalism was wiped out today by the capital market providers 6% fall in value. The United States has been a capitalistic society, and the world for a large part has been one also; a capitalistic society cannot exist without capital market providers; being that they were wiped out today by stock market trading, capitalism is dead, dead and dead. A "financial emergency" can be the only outcome of today's 6% loss of value in the capital market providers.
The Leaders' Joint Statement that came forth from the March 31, 2006, Cancun Summit provides a framework agreement for North American emergency management to handle a disaster, whether natural or man-made; and most definitely an economic disaster is coming.
Given today's failure of capitalism, the SPP, will ease the transition from capitalism to state corporate rule of the resources and people of the North American continent: the coming enforcement of the SPP places one's capital at great financial risk.
Corporations and individuals should not be invested in stocks of any kind, even precious metal or natural resource stocks, as well as not having any money in any U.S. dollar cash position such as a savings account, a checking account, a money market account, a short term bond fund, a TIP bond ETF or TIP bond fund, US Treasury Bills, an ETF, a mutual fund variant thereof, or a $1 money fund; and even a dollar denominated short selling account.
A Wealth Preservation Strategy Is Recommended
Currency traders view the Federal Reserve lowering of the interest rates charged to banks as debasing to the currency; the US Dollar fell again today; corporate finance will continue experience a terrific loss of value as the run on the dollar continues: it behooves a corporation and individuals not to have a dollar denominated balance sheet and investment portfolio.
John Browne writes in 321gold article The Problem Spreads that for alert Americans, investment attitudes must undergo a sea change. Instead of thinking in terms of return 'on' capital, investors will be well advised to think about return 'of' capital! Greed should give way to extreme prudence.
It is becoming increasingly clear that any investors, who wish to protect their wealth, should invest in non-dollar denominated financial assets and, where possible, hold them (legally, including paying tax) offshore, in order to avoid any risk of the future imposition of American exchange controls.
If one believes that gold and gold alone is the sole means of wealth preservation and management, the two greatest risks now to the investor are: one, not having 100% access to one's cash or money wealth in a system wide financial emergency, and two, the risk of investing in gold and seeing it depreciate in value until it rises again due to a hord of investors seeking safety in hard metals.
Related Articles
Fed Fails To Halt Debt Meltdown
The Great Depression 2 Starts Now
Bear Market Update April 12, 2008
The Bloody Knife Used to Gut Bear Stearns???
Lenders Of The Last Resort Unite
WIDGETIZE