'Twas The Night Before Fed Day...

 https://www.zerohedge.com/markets/twas-night-fed-day

" 'Twas the night before Fed Day, when all through the bourse,

Rate-cutters were stirring, ready to open the purse.
The voters in Eccles were afraid of a stock bear,
But all had high hopes that the Santa Rally soon would be there."

Maybe it was being in Europe, with a particular shout-out to Zurich for putting me in a holiday mood. Academy also has our holiday party this week, which I’m looking forward to, though I’m not sure why I thought guest hosting Bloomberg TV at 6am the next morning would be a good idea. Or maybe it was the daunting task of needing to write about something that I didn’t feel passionate writing about (knowing that it would be about one out of a thousand Fed write-ups hitting your inbox in the next 48 hours didn’t help the motivation level). Or maybe, I was just jet lagged, lazy, and felt that we covered some of the groundwork in last weekend’s The Santa Rally Recipe.

If I was to do a serious report, in as few words as possible, I’d go with:

• Market is pricing in a 95% probability – the Fed won’t disappoint.

• Powell is as close to being a lame duck chair as we’ve seen, so nothing he says will carry much weight into the new year.

• I think the market is still underpricing:

  • The level of coordination we will see between the Treasury, the Fed, and the admin.

  • The “out of the box” thinking we will see in terms of tools implemented and even the shaping of the Fed to try to achieve my interpretation of the stated goal of 3-3-3 (3% growth, 3% front-end yields, and 10-year bond yields with a 3 handle).

Central Planner Exits Stage Left

And cash from clunkers begins...

Ok, so I'm having me one of those blond days today

Does the cash for clunkers, stand for the excess crap the banks can't off load
or is the clunker part pertaining to the fraudulent MBS that never got registered?
There had to have been a crap load of those. Karl said that the banks only had 30 days after they were bought. I know there was a heck of alot of lawsuits citing fraud.
Doesn't the FED buying 40 billion a month of MBS kind of get the Investment banks out of a pretty tight spot?
Isn't the American taxpayer really picking up tab for the Mortgage Investment Banks gambling debts again?
It seems to me they are.....

On A Gold Standard And The Free Market For Goods, Services, And Money

Lol Someone needs to mention the fact of "There ain't no free lunch" to the "elite" of society, because they're still expecting it "On time, Every time", and the kicker to that point is, the tip (think jobs) that they should have left "Us"(think taxpayer here)for serving them so efficient and graciously, they give to economically developing counties, at a much lower price(think wage, as in pennies on the dollar) and in the mean time, our economy stagnates or in all actuality, contacts (think massive weight loss due to nothing to eat) and "We" grow weaker by the day, while our government, throws a part for the "elite" (think corporations here) plying them with the finest of fares( think tax breaks) that the rest of "Us"(taxpayer) pay for, while trying to survive off of the crumbs, that are dropped on the floor(think food stamps) that the government and the "elite" will make "Us" all indentured servants for, the rest of "Our" (think all of humanity here) future generation of lives.
It's a wicked gamed to play, but they do and they're very good at it

A free market is composed of people who produce and trade the products of their efforts in exchange for the products of others. The free market is able to coordinate the activities of everyone, and enable everyone to optimize his results. Unfortunately, governments interfere in the free market. They do so by the use of force. The government always justifies its intrusions on the grounds of helping people. Government officials and voters are not aware of the lessons of Frederic Bastiat. The attempt of all to live at the expense of all is doomed. There ain’t no such thing as a free lunch. Rather than helping people, the government’s interference inevitably causes distortion. As destructive as government interference is in the area of production, it is that much worse in the area of money and credit. Every aspect of production and trade depends on money, so distortions in this area are magnified. Unfortunately, the government has distorted the monetary system so badly that both are accelerating towards destruction. The solution, and the only hope for civilization, is to rediscover the principles of free markets, particularly on the monetary realm, and begin returning to a gold standard.



The following thesis, while long, examines these themes in great detail; from Rand to Bastiat and the Nine 'Government-' and Seven 'Central Banking Monetary-' Interferences, the case for a 'proper' Gold Standard is clear:


"…if we are to have a dynamic economy with production, trade, invention, innovation, global markets, and growing efficiency then there must be a financial system in which gold flows"



Dissertation Final

Federal Reserve has already started QE3, says investor Jim Rogers

He hasn't been wrong so far, so I doubt he's wrong about this.

Mr Rogers, who co-founded the Quantum Fund with George Soros, believes that America's central bank is secretly printing money to avoid "getting egg on their face again" after previous attempts to kickstart the faltering economy with $2 trillion of QE failed.

"I do not know if they [the Fed] will announce it," he told India's Economic Times. "I know they are going to print more money. They already are. If you look at their balance sheets, you will see that something is happening, assets are building on their balance sheets and they are not coming from the tooth fairy.

Friday Humor: Gold Is A Barbeque Relish

Inn the senseless world, of the Keynesian cult, Mark McHugh, gives us a delightful parody into the ultimate of understanding.
Or in other words I laughed so hard I cried lol.
Do yourself a favor and take a De-stress break and partake of the delightfully divine "Gold is a Barbeque Relish"
You'll be glad you did


by Mark McHugh of Across The Street,

My Doctor’s an idiot. A few years ago, he started expressing concerns about my weight, pointing at this chart supposedly showing how much a man of my height should weigh. One glance at his stupid chart and it was clear to me that he had completely misdiagnosed my condition. There was nothing wrong with my weight, I just wasn’t tall enough. Clearly I needed to grow my way out of this. So I went home and googled “how to stimulate growth.” Once I got past the all the baldness cures and penis pumps (it’s not my bag, baby), I found hundreds of papers so incredibly boring I knew they had to be true. In no time, I was able to design and implement my own stimulus plan based on the irrefutable scientificky principles of Nobel prize winners and other people so smart they never had to do an honest day’s work in their lives. Despite the difficulty climbing stairs, I was feeling pretty good about things until my last check-up….

“Hi, Doc.”

“Hi,” he said, examining my file. He looked up, “You’ve put on twenty pounds since the last time I saw you”

“Thanks for noticing,” I beamed.

He frowned. “I remember now. You’re the guy on the diet designed to make you grow. What’s that called again?”

“The Keynesian Plan.”

“Is that the one where you eat bacon and cheese, but not

Fraud As A Business Model Endorsed by The Fed And OCC

http://market-ticker.org/akcs-www?post=175615

Do "We" deserve this kind of representation, which comes from a government endorsed private entity?
The hand writing is on the wall kids, in big bold neon colors.
The Federal Reserve and the Office of the Comptroller of the Currency are biased toward the banks and don't represent you at all.
It's time to end the FED.
We all deserve better!


Yep.... any screwing is a good screwing, so long as a bank does it and you, the consumer, are the screwee.

WASHINGTON -- Top policymakers at the Federal Reserve are fighting efforts to rein in widely reported bank abuses, sparking an inter-agency feud with the FDIC and the Treasury Department. The Fed, along with the more bank-friendly Office of the Comptroller of the Currency, is resisting moves to craft rules cracking down on banks that charge illegal fees and carry out improper foreclosures. The FDIC supports such rules, according to an FDIC official involved in the dispute.

Got that?

The Fed and OCC are resisting cracking down on ILLEGAL fees and IMPROPER foreclosures.

What part of "illegal" don't these guys care about?

Oh, that's simple. If it's illegal (say, by charging an illegal fee, foreclosing by committing perjury, doctoring wire information so that the fact that you're funding terrorism in the Middle East is obscured, or screwing municipalities with hinky derivative deals, or perhaps not even transferring mortgages into alleged mortgage-backed securities) according to The Fed and OCC it's perfectly ok if it screws the consumer - or anyone except a bank.

But as soon as you screw a bank, why that's really illegal and for that you should be prosecuted.

Fed Created Conflicts in Improvising $3.3 Trillion Financial System Rescue

http://www.bloomberg.com/news/2010-12-03/fed-created-conflicts-in-improvising-3-3-trillion-financial-system-rescue.html

But, but but, they had no choice.
Bullshit, if they had tried using generic instead of name brand there wouldn't have been any unintended consequences.

No Choice

“That’s the way the system works,” said David Castillo, senior managing director at Further Lane Securities in San Francisco. “It’s problematic that they’re customers, but that shouldn’t limit their ability to participate in this process. Quite frankly, we don’t have a choice. They have the expertise.”

In compliance with the Dodd-Frank financial overhaul law, the Fed on Dec. 1 identified the institutions that used $3.3 trillion of improvised rescue programs. The 21,000 transactions in 11 initiatives included the money-market plan Cunningham helped devise, known as the AMLF, short for its 10-word formal name, the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility.

In its scramble to keep the economy from collapsing, the Fed also created the Commercial Paper Funding Facility, or CPFF, which tried to ensure that banks and industrial companies had the short-term loans they needed to fund everyday operations. General Electric Co., then the biggest issuer of commercial paper, met with Treasury and Fed officials in the days before they created the CPFF.

‘Unintended Consequences’

More BOA Attention (Of The Unwanted Sort)

http://market-ticker.org/



And the pooling and servicing agreement, which the borrower's counsel asked to have produced (to prove that all of the other things done were on the "up and up" was allegedly produced in court unexecuted and with the word "DRAFT" emblazoned over the top of it, after an attempt to find it on the SEC's EDGAR website proved fruitless.

DeMartini’s statements also place Bank of America’s outside auditor, PricewaterhouseCoopers LLP, in a tough spot. The firm has no choice now under U.S. auditing standards but to find out definitively if what DeMartini said is correct, and whether the answer would affect any of its prior audit conclusions. PwC billed Bank of America $128 million for its audit and other services last year. The mortgage at issue in the court ruling was originated in 2006 by Countrywide Financial, which Bank of America bought in 2008.

Auditors have never mattered since ENRON. In fact, basically all of them involved in auditing the financials of banks should be strung up by their nuts by now. How you can possibly argue that an audit opinion has merit after the disclosure of The Fed haircuts on the so-called "assets" pledged for TAF and similar programs at this point is beyond the pale. That is, we now know that banks came to these programs and pledged assets with ten times or more the face value of what they "borrowed" - but then when these loans were repaid those worthless assets (in the opinion of the NY Fed desk) were never recognized at that valuation by anyone ever again. In fact, they're probably still sitting on bank balance sheets - at 95 or even 100 cents on the dollar.

This much I can tell you with certainty - whatever collateral was pledged on 1/21/2009 in the "face" amount of $185 billion for a $15 billion loan was never exposed in a 10K or 10Q as having taken a loss of more than 90%.



Such a loss would have resulted in in the instantaneous detonation of Bank of America. Indeed, that loss is more than half of the firm's enterprise value as of today and exceeds the company's market cap.

That is, it was more than enough to blow them to Mars - and that was one transaction.

While some of those loans were clearly rollovers of earlier ones, and thus the "9 trillion" bandied about is a histrionic distortion (typical of many people in the media and Congress) the fact remains that these programs disclose monstrous hidden losses in the form of worthless collateral that was posted by these institutions and which then disappeared once again into their bowels and has not been seen since.

Dallas Fed Admits "For The Next Eight Months, The Nation’s Central Bank Will Be Monetizing The Federal Debt", Opens Door To Bernanke Impeachment

http://www.zerohedge.com/article/dallas-fed-admits-next-eight-months-nation%E2%80%99s-central-bank-will-be-monetizing-federal-debt-op

It's time for a change America.
The interests of the "PEOPLE" are not being served, they are being denied by those who should have NO SAY in the choices "WE" decide.


Time to begin the Chairman impeachment proceedings. It is one thing for blogs like Zero Hedge to argue (rightly) for the past 1.5 years that the Fed's actions in the Treasury space are nothing but direct debt monetizations. After all, one can always argue semantics, as some peers have enjoyed doing in the past. Yet when an actual Federal Reserve Fed President, in this case Dallas Fed's Dick Fisher states it without any trace of hiding the underlying intent, then things get a little serious. To wit: "For the next eight months, the nation’s central bank will be monetizing the federal debt." It gets worse: even though Fisher realizes that what he is doing is unconstitutional, he also admits that the Fed's actions are now is effectively a policy tool: "Here is the message: The Fed is going out of its way to be a good citizen. It is time for the Congress to do the same." In other words, the myth of the Fed's political independence is now destroyed. All pretense has now gone out of the window as the Fed realizes this is the last "all in" bet. If this fails, it is over. Yet maybe someone in power can precipitate this much needed reset. After all it was Ben Bernanke who testified under oath that the "Federal Reserve will not monetize the debt." It is time he is impeached and prosecuted for this lie.

FRAUD and THEFT right in your face, sanctioned by your Government

http://market-ticker.org/akcs-www?post=171609

America, is this really what your willing to stand for, as the rule of law in this country?
The persecution of treason must be enacted for any government official that does not come out right and demand the arrest and prosecution of the cabal, that has chosen to over look these crimes as just a paperwork mistake.
Even the dumbest American can understand after watching this, that a well thought out plan was in progress from beginning to end by the mortgage investment banking industry, formerly known as the Wizards of Wall Street.
This ladies and gentleman was NOT God's work, but the work of the Financial Mafia, and QE2 is another extention of the coverup of their crimes!
LETS ROLL AMERICA!
Because either this plane is going down, or "WE" all do!


Here Come The Depositions

Gee, there's nothing wrong here with this sort of signing of documents, right?



About 30 minutes worth..... repeated admissions that she's signing as a "witness", but she never actually witnesses anything - she's signing documents as a witness that she never witnessed. (10:00, roughly, first video, and right in the front of the second video, and well into it....)

Naw, there's nothing wrong with submitting hundreds (thousands?) of documents to a court in which you claim to have witnessed a signature when you really didn't......

It's also ok that a person who has such limited knowledge of the English language that they do not understand what the words "For good and valuable consideration" means when signing as a witness. Or, for that matter, what the words "effective date" mean. Yes, really (~4:00 to 5:30, second video.)

It's also ok that this person's signature has been scanned into a computer and used as if an original?

It's ok to testify that you never sign as a "Vice President", then you're shown a document where you have indeed signed as a Vice President.... of course, the problem here is that she doesn't understand and read enough English to know what she's doing - she's simply been paid to sign her name anywhere it appears. (~7:00 into the second video)

This is what passes for due process of law in this country. These are "technical deficiencies" in paperwork.

We don't actually have companies exploiting immigrants to this nation who have extremely-limited understanding and comprehension of the English language to utter documents attesting to false facts, right?

This most-certainly is not evidence of an organized conspiracy to defraud the courts, defraud the people, and steal homes, right?

How much more of this crap will we tolerate America?

The Disease That Is America

http://market-ticker.org/akcs-www?post=171582


PT Barnum once said there was a sucker born every minute. That was a long time ago, and it would seem that the suckers, having no one else left to procreate with except themselves, have now left the nation utterly incapable of realising the depths of the rational thought process.
Karl proves this point perfectly, or rather I should say the comments on Karl's blog have.
Not one comment stated, what should have been the obvious, that Palin, as well as the rest of the Tea Party, have left out of their political platforms.
The over taking of "OUR" Nation and the enslavement of "OUR" people through the economic art of embezzlement, by the actions of Ben Bernanke for the further empowerment of the Federal Reserve, or by Timothy Geithner's misuse of the United States Treasury for furthering the agendas of his honorary governorship of the IMF.
All the tits and ass in the world will not be distraction enough for what Ben and Timmy have done and are now currently continuing to do, through the process of QE2, for the total debasement, of any type of buying power for the dollar.
Starvation can be a real eye opener, but by then it will be to late to do anything about it.
America you must ban together and take back your nation now, or there is NO FUTURE for you or your children, other than that of Zimbabwe, where a loaf of bread, if you can afford it, cost 10 thousand dollars.


My my my, what lovely sheep you are.

Last night I posted a commentary that Sarah Palin will be delivering today.

She, like all modern politicians, reads from a teleprompter. Wow. I'm impressed. For the record, in all of my public-speaking engagements, I've never used one. Even when it was offered. I don't believe in them.

20, 30, 40 or more years ago, there wasn't one. I will sometimes bring a set of cue cards with me to the podium, and others have historically done that as well. In my view, if you can't orate from your mind, you can't orate. Anyone can stuff a suit or a blouse - witness the bubbleheads on TV every day.

Are you selling your words? Or are you selling your **** - or penis?

(Get over it folks - sex sells and always has. When was the last time you saw an ugly TV news anchor?)

Nonetheless, I want to focus this commentary on the responses to that Ticker.

They're not only sad, they're a reflection of us. Some short excerpts:

Fed Distances Itself From Banks, Says Will Not Seek Review Of "Pittman" Even Though It Is Lawsuit Defendant

http://www.zerohedge.com/article/fed-distances-itself-banks-says-will-not-seek-review-pittman-even-though-it-lawsuit-defendan

"Whether justified or not"
How much of a tell is that?
Remember the stipulation Hank Paulson insisted on?
The one that said: He could not be held personally responsible or prosecuted for any of the misactions of the bank bailout, that might come out later.
The Senate agreed to that crap to, without nary a question.
I'm telling you, it's because of that "no child left behind" rule.
And they made sure not to leave Hank behind, now didn't they.

Amusingly, following up on earlier reports that the Clearing House Association (aka the banking oligarchy) will petition the SCOTUS to hide their oh so very secret insolvency which by now everyone knows about, the Fed has decided to amusingly distance itself from the kleptocratic crowd and will not seek court review. In other words, the public's anger when the SCOTUS sides with the bankers will fall squarely upon Lloyd Blankfein et al, and not Ben Bernanke, even though it is the Fed who is the defendant in the Pittman lawsuit. This is just plain ridiculous. And the reason provided by the banks: why more mutual assured destruction of course: "disclosure of the information threatens to harm the borrowing banks by allowing the public to observe their borrowing patterns during the recent financial crisis and draw inferences--whether justified or not--about their current financial conditions." Here is an inference about their current financial conditions: they are all insolvent. Does that matter? No. Because the only holders of bank stocks now are other banks. It is called a ponzi for a reason after all.

More from Dow Jones:

Foreclosure Mess Under Review, Report Looms: Bernanke

http://www.cnbc.com/id/39828633

Here comes Ben to save the day!
No, not for you.
But for his banking buddies.
You see the FED is in a fix,
That crap is sitting on their books to and it makes them look very stupid for forking over money (yours) for a title they can't even transfer.
It's either that or collusion, either way it's bad for the FED.
The stupidity factor, means Ben's not fit to make economic decisions that effect this country.
And the collusion factor, means Ben should be tried and imprisoned like the rest of the big investment banking industry, after all he does take violations of proper procedure seriously.


Federal banking regulators are examining whether mortgage companies cut corners on their own procedures when they moved to foreclose on people's homes, Federal Reserve Chairman Ben Bernanke said Monday.

Preliminary results of the in-depth review into the practices of the nation's largest mortgage companies are expected to be released next month, Bernanke said in remarks prepared for delivery to a housing-finance conference in Arlington, Va.

"We are looking intensively at the firms' policies, procedures and internal controls related to foreclosures and seeking to determine whether systematic weaknesses are leading to improper foreclosures," Bernanke said. "We take violation of proper procedures seriously," he added.

Fed Wants Banks to Buy Back Some Bad Mortgages

http://www.nytimes.com/2010/10/20/business/20bond.html

So big institutions are buying up the debt for a nickle on the dollar banking on the 100% buyback because they think it's guaranteed that the taxpayer is going to fund a rescue plan for Bank of America?
That ain't even happening.
Crime doesn't pay and "WE" don't pay for crime.
BoA committed fraud and embezzlement, as did the rest of the investment banks.
They need to be liquidated to pay off their creditors and tried for their crimes, not given more money to carry on.
I don't care if their creditors get paid or not.





Indeed, the group that includes the Fed is one of two coalitions that is gearing up for a fight with the banks.

It also makes for some strange bedfellows. After all, it was the government that bailed out Bank of America — twice — during the financial crisis, the same government that includes the Fed.


There is risk too for the government, despite the Federal Reserve claims. If the banks are indeed forced to spend tens of billions to buy back securities, they could turn once again to the federal government for help.

Guest Post: U.S. Financial Markets: The Well Has Been Poisoned (Anger of the Honest Part II)

http://www.zerohedge.com/article/gues-post-us-financial-markets-well-has-been-poisoned-anger-honest-part-ii



This is why no institutional investor will touch private-market mortgage securities with a 10-foot pole. The U.S. government and the Fed had a stark choice: either impose the rule of law and indict and convict hundreds, if not thousands, of people who perpetrated and profited from the systemic fraud and embezzlement at the heart of the mortgage and mortgage-securities industries, or socialize the corrupted, poisoned markets and use taxpayer funds to prop up the wizened shell of a stripmined market and reward the criminals with freedom.

They chose to reward the criminals and prop up a simulacrum market with only one buyer: the Federal Reserve. You can go to the the Fed's balance sheet and see the $1.2 trillion in mortgage-backed securities it owns. There is no effort to hide the brazen socialization of what once was a private-sector, free market.

When the well has been poisoned, the only players dumb enough to drink from it are the taxpayers, who have no choice as the politico toadies of the investment banking/financial Power Elites have funneled some $13 trillion in cash, backstops and guarantees into their "partners" who fund their campaigns and write the laws via their lobbyist proxies.

The Fed isn't dumb--it's desperate. The markets, systemically riddled with collusion, cronyism, fraud, embezzlement, misrepresentation and outright lies, have no participants except Central State proxies and "marks" who sadly still believe the ceaseless propaganda about "rising corporate profits," "recovery" and "a free-market economy." Hahahahaha--free market! Please don't make me laugh that hard, I might hurt myself.

Will the Federal Reserve cause the next Civil War?

http://curiouscapitalist.blogs.time.com/2010/10/19/will-the-federal-reserves-next-meeting-lead-to-civil-war/

Between foreclosure-gate and QE2 the American taxpayer has had enough of suplementing the life styles of the rich and famous.
I do believe unless "WE" see arrests being made in the foreclosure scandle there is a HUGE probability of civil unrest.
America at this point only recognizes the FED's actions for what they are.
The bailout buddy bonus, just because they can, will, and have.

What is the most likely cause today of civil unrest? Immigration. Gay Marriage. Abortion. The Results of Election Day. The Mosque at Ground Zero. Nope.

Try the Federal Reserve. November 3rd is when the Federal Reserve's next policy committee meeting ends, and if you thought this was just another boring money meeting you would be wrong. It could be the most important meeting in Fed history, maybe


Chairman Ben Bernanke has indicated in recent speeches that the central bank plans to try to drive down already low-interest rates by buying up long-term bonds.


So it seems clear what the Fed is likely to do. How the economy, the militias and the rest of us react is up in the air. The count down is on. T minus 15 days to Fedamageddon. See you there, hopefully.



Read more: http://curiouscapitalist.blogs.time.com/2010/10/19/will-the-federal-reserves-next-meeting-lead-to-civil-war/#ixzz12uX7Awe2

That being said, civil war, probably not. "It is a gross exaggeration," says Allan Meltzer, who is a top Fed historian at Carnegie Mellon. "I cannot recall ever learning about riots or civil war even when the Fed made other mistakes."

Read more: http://curiouscapitalist.blogs.time.com/2010/10/19/will-the-federal-reserves-next-meeting-lead-to-civil-war/#ixzz12uWMB200

Dollar fall sparks stability warnings

http://www.ft.com/cms/s/0/5505a7f0-d7c2-11df-b478-00144feabdc0.html

The dollar tumbled against most major currencies on Thursday, prompting warnings that the weakness of the world’s reserve currency could destabilise the global economy and push other countries into retaliatory devaluations to underwrite their exports.

Increasing expectations the Federal Reserve will pump more money into the US economy next month under a policy known as quantitative easing sent the dollar to new lows against the Chinese renminbi, Swiss franc and Australian dollar. It dropped to a 15-year low against the yen and an eight-month low against the euro.

The dollar index, which tracks a basket of currencies, reached its lowest level this year.

A senior European policy-maker, who asked not to be named, said a further aggressive round of monetary easing by the US Federal Reserve would be “irresponsible” as it made US exports more competitive at the expense of its rivals.

Simon Derrick, chief currency strategist for BNY Mellon, said: “In narrow terms, the US is winning the currency wars as a weaker dollar will help its economy, but it could damage the other big economic blocs of China, Japan and Europe.

More Heroin Please

http://market-ticker.org/akcs-www?get_gallerynr=404

Scary look at the chart

The dollar? Well, you can see what the dollar thinks of this:



But Charles Hugh Smith adds to the problem that I've outlined - and QE-anything isn't going to fix a damn thing because the problem is a rot in the middle of the banks' balance sheets, which can only be fixed by forcing them to eat it - and that will bankrupt them:

Either there is due process of law or you have a kleptocracy/"banana republic" oligarchy. At present, that is the decision we face as a nation. If the banking Elites and their partners in the Central State (Fed and Treasury) are allowed to "win" and gut the property laws of the states, then the U.S.A. will be revealed as a kleptocracy/"banana republic" oligarchy.

If state laws are upheld, then the "too big to fail" banks are insolvent and they will fail. Then the question of kleptocracy arises once again: will the banks be allowed to fail as per Classic Capitalism, that is, their owners and managers will have to absorb the losses of that bankruptcy/failure, or will the Central State use its powers to collect taxes and cover the private losses of the Bank/Financial Power Elites? Privatizing profits and socializing losses has been the entire game plan since the global house of cards collapsed in 2008.

It's decision time, citizens. Either the banks/Central State "win" and we are a kleptocracy/ "banana republic," or they lose and the U.S. mortgage/ banking sector implodes and is either formally socialized (i.e. owned lock, stock and barrel by the Central State) or rebuilt from scratch without big banks, Federal guarantees and the Fed's incestuous interventions. ("We create the credit that enables the mortgage, you issue the mortgage, and then we buy the mortgage.")

There is no "fix" or half-measure that can patch this over now.

Yep.

60 Minutes Brings HFT To The Mainstream, As CFTC Refutes HFT Liquidity-Provisioning Argument

http://www.zerohedge.com/article/60-minutes-brings-hft-mainstream-cftc-refutes-hft-liquidity-provisioning-argument

If America saw this piece last night on 60 Minutes the FED doesn't have a shot in hell of drawing the average American back into the market.
This is just one more ploy of the rigged financial system.
It's all tied together.




Last night on 60 Minutes, Steve Kroft, finally brought mainstream America's attention to the topic that has been the primary scourge of efficient markets over the past 5 years: High Frequency Trading (not to be confused with Signing, aka RoboSigning). In Wall Street: The Speed Traders, Kroft spoke to such advocates of a robot parasite-free as Themis Trading's Joe Saluzzi and (now ex) Senator Ted Kaufman, as well as some other individuals who stand to benefit by computerized feedback loops making a mockery of price discovery, and which have now caused something like ten mini flash crashes in as many days, not counting the Flash Crash itself. Of course, the only defense the HFT lobby continues to use is that it provides liquidity

Bernanke Warns Against Move to Audit Fed

http://online.wsj.com/article/SB10001424052748704370704575228164133105390.html?mod=WSJ_hpp_LEFTWhatsNewsCollection



Federal Reserve Chairman Ben Bernanke sought Thursday to head off legislation that would subject the central bank's monetary policy decisions to congressional audits, warning it could stoke inflation and threaten economic stability.

With U.S. senators moving toward a possible vote later in the day on an amendment to the financial regulatory bill that would significantly increase congressional oversight of the Fed, Mr. Bernanke warned of the consequences in a letter to Senate Banking Committee Chairman Christopher Dodd (D., Conn.).

"Such amendments, if enacted, would seriously threaten monetary policy independence, increase inflation fears and market interest rates, and damage economic stability and job creation," Mr. Bernanke wrote.

In the past few days, Mr. Bernanke has reached out to about a half-dozen lawmakers to help make the Fed's case against the bill.


..If the amendment passes, it might be hard to strip from the broader legislation. The House's version of the bill, which passed late last year, contains a similar provision, which Mr. Bernanke also opposes. Passage would set up a dilemma for the White House, which would have to decide whether to veto a top domestic priority to duck the provision.