Implode-Explode Heavy Industries news feed

Robin Hood in reverse -- gold being taken down to make the rich richer

Thu, 23 May 2013 09:54:38 GMT

``At some stage all this will turn around and perhaps we'll see paper gold and silver purchases in similarly strong amounts designed to drive prices up again and make huge profits foir the big money again. That's how the major financial players with virtually unlimited resources can make squillions of dollars at the expense of people's investment savings and pension funds. It's all part of the great capitalistic rich-get-hugely-richer game and the legislators seem powerless to stop it -- if indeed they want to as they themselves are often an integral part of the process. ''

Too-Big-To-Jail Dogs Obama's Justice Department As Government Documents Raise Questions

Thu, 23 May 2013 04:42:43 GMT

``It also may put further pressure on the Justice Department to strengthen future prosecutions. Recently, instead of filing criminal charges against large financial groups, federal prosecutors have begun to file criminal cases against subsidiaries. Observers including lawyers at Weil, Gotshal & Manges LLP, a top defense firm, have warned that Justice may expand its limited use of criminal indictments in part due to public pressure.''

Foreclosure Victims Protesting Wall Street Impunity Outside DOJ Arrested, Tasered

Thu, 23 May 2013 04:40:46 GMT

``Protesters scolded Holder's remarks as they marched from Freedom Plaza to the main entrance of the Justice Department, which was barricaded by DC police and officers from DHS. After a handful of impassioned speeches, several struggling homeowners jumped the barricade. Officers quickly retreated into the building and shut the door. Before long, the barricade was torn down and hundreds of protesters flooded the exterior around the main entrance where they banged on the door and shouted, "Eric Holder, come on out!"''

BofA, JPMorgan Chase Say They've Fulfilled National Mortgage Settlement Obligations: Report

Thu, 23 May 2013 04:09:39 GMT

``BofA and JPMorgan's assertions that they've fulfilled their obligations under the settlement aren't official, as Joseph Smith, the monitor for the deal, hasn't reviewed them yet, according to the LA Times. Wells Fargo also claims to be 90 percent of the way done fulfilling its obligations.
The banks' claims that they've met their end of the bargain may not be enough for struggling homeowners as countless criticisms have arose in the wake of the settlement. ''

Richard Russell on the Bizarre Market; Crude Manipulations

Wed, 22 May 2013 13:45:40 GMT

``I've never seen so much money being sloshed about. Nor have I ever seen so much news of corruption and criminal activity.... I think the gold miners will fly once gold gets over 1500. This crunch job on gold is the crudest manipulation job I've ever seen.''

Blockbuster in Gold - Ted Butler

Wed, 22 May 2013 13:27:41 GMT

I believe that the big buyer of the 10 million ounces of gold liquidated in the GLD was JPMorgan, either alone or with other collusive commercial banks... by having the gold redeemed out of the trust and the metal being purchased (instead of shares), stock reporting requirements are evaded. A single holder, perhaps working with a few collusive partners, have come to own what is, effectively, almost a quarter of the world's largest gold stockpile and no one is the wiser.
...
When you include what came out of the ETFs and exchange warehouses it adds an additional 15 million ounces. Together that totals 30 million ounces ($45 billion). Options and over-the-counter derivatives transactions could double that amount. This likely brings the total of their purchases to 50 million ounces ($75 billion). This sound like a huge number but it's quite manageable for these big banks and it represents a small fraction of the total derivatives market.
...
If, as I contend, JPMorgan picked up at least 20 million gold ounces they shook out from the GLD and elsewhere, a $300 dollar gold rally will net them $6 billion in ill-gotten gains on that position alone. It could be much more if they are more ruthless in creating higher prices. Generally, with these crooks they usually exceed what you think they are capable of.

Updated Consumer Relief - The Office of Mortgage Settlement Oversight

Wed, 22 May 2013 05:14:27 GMT

``"Since the Settlement was announced, I have released three prior progress reports that detailed the banks' self-reported consumer relief data on a quarterly basis," said Smith. "I believe it is important to continue to share this data with the public, and, accordingly have done so on my website. However, I have not prepared a full report on this data because I am focusing my time testing the banks' year end consumer relief claims and giving them appropriate credit as outlined in the Settlement. This allows me to provide the public with credited reports as soon as possible. "The four banks that have not yet been credited have requested that I determine their consumer relief progress through the end of 2012," said Smith. "I will release my review of their work in the coming weeks to the Court and the public. At that time, I look forward to engaging in a public conversation about their progress."''

Monitor Checking Into Violations of Mortgage Settlement

Wed, 22 May 2013 05:13:40 GMT

``The announcement that Smith is looking into potential violations comes a week after New York State Attorney General Eric Schneiderman said he would sue BofA and Wells over complaints they did not provide fair and timely service to homeowners seeking relief.
Smith and others attorneys general have been looking into the same issues. Illinois Attorney General Lisa Madigan said Tuesday her office found "an alarming pattern of potential violations of ‘servicing standards.'" For example, she said that in 60% of files surveyed, banks failed to notify borrowers within five days of missing documents in their applications.''

Jamie Dimon Survives Shareholder Vote

Wed, 22 May 2013 05:11:57 GMT

``The vote was seen as a test of shareholder power over the operations of large financial institutions. Dimon, the longest-serving chief executive at one of the nation's six largest banks, worked feverishly with his key lieutenants to defeat the proposal -- pointing to the company's profitable track record, its stock price, leading market share in financial services and Dimon's experience in steering the company through the financial crisis.''

Washington Signals Deep Dollar Concerns -- Paul Craig Roberts

Tue, 21 May 2013 15:26:04 GMT

``What does this illegal manipulation of markets by the Federal Reserve tell us? It tells us that the Federal Reserve sees no way out of printing money in order to support the federal deficit and the insolvent banks. If the dollar came under attack and the Federal Reserve had to stop printing dollars, interest rates would rise. The bond and stock markets would collapse. The dollar would be abandoned as reserve currency. Washington would no longer be able to pay its bills and would lose its hegemony. The world of hubristic Washington would collapse. ''

This Time, Gold Bugs May Have a Point - Barron's

Tue, 21 May 2013 15:15:42 GMT

``These improbable moves have made gold bugs suspicious, which isn't unusual... They point to bursts of selling on Friday, April 12, which resulted in prices plunging by more than 5%, and to dumping that resumed the following Monday in Asia, early in the day when markets are illiquid. That culminated in a 9% collapse by the time the New York market had settled. But a seller who wanted to unload a large position at the optimal price would have done precisely the opposite--liquidate as discreetly as possible. Instead, sellers dumped the equivalent of more than 300 tons of the metal in staccato-like blasts during those sessions.''

Caterpillar North America Sales Collapse Suggests US Economy Back To 2010 Levels

Tue, 21 May 2013 15:00:57 GMT

``US machine retail sales just saw the biggest tumble in three years, falling 18% Y/Y: the most since early 2010. ''

Alabama Slamma' -- Not for Better, Far Worse... As Foreclosures we Chart

Tue, 21 May 2013 14:24:06 GMT

``We seem to be having a national recovery in much of the media, but in the states themselves the numbers are refusing to cooperate. I guess if you can have a "jobless recovery," then you can probably have a national recovery without states being involved.

According to a wonderfully dizzying article on AL.com -- All Alabama, the southern state is facing some roadblocks to the recovery of its housing market. According to words used in the article's headline, "foreclosures are crippling the state's housing market, despite a national trend."

Ready to have some fun? Here goes...

''

House Passes SEC Cost-Benefit Analysis Bill

Tue, 21 May 2013 05:25:57 GMT

``The legislation passed despite critics' concerns that the bill imposes overly stringent requirements on the agency, which could slow implementation of the Dodd-Frank law. The White House Office of Management and Budget issued a statement earlier this week warning that its procedures were "onerous."''

JPMorgan Must Face Dexia s Mortgage Suit, Judge Rules

Tue, 21 May 2013 05:24:49 GMT

``The nation's biggest bank will have to face allegations by Dexia, which says it lost hundreds of millions of dollars after buying $1.6 billion in residential mortgage-backed securities from JPMorgan Chase, Judge Jed Rakoff of the U.S. District Court in Manhattan ruled Friday.''

As Housing Markets Recover, Wall Street Beats Families To Homes

Tue, 21 May 2013 05:23:30 GMT

``These investment firms are acquiring vast quantities of homes, fixing them up, and then marketing them as rentals. They arrive at auctions or home sales bearing cash, which gives them a competitive edge on millions of ordinary would-be buyers like the Gilbertsons, who must finance their purchase using borrowed money. These cash buyers are also more likely to pay above asking price, local brokers say, which is contributing to the overall price increase.
One company, Invitation Homes, funded by the hedge fund Blackstone, has over the past year spent $4.5 billion to purchase about 25,000 homes in formerly distressed housing markets, including 4,000 properties here in the Phoenix area. ''

The slow-going process of compensating victims of housing violations

Tue, 21 May 2013 05:21:33 GMT

``In 2011, Wells Fargo agreed to compensate up to 10,000 borrowers after the Federal Reserve found the bank was steering them into subprime loans even though they qualified for better mortgages. But no borrowers have received money yet.
Last year, Bank of America agreed to pay some borrowers between $1,000 and $5,000 for what the Justice Department called lending discrimination. The agency said the bank illegally asked some would-be home buyers who relied on disability income to provide a doctor's letter verifying the severity of their ailment. But it's still unclear how many people will ultimately be paid. There isn't a full list of the victims.''

Dimon has little to lose in shareholder vote

Tue, 21 May 2013 05:18:31 GMT

``Much better, Dimon could cede a sliver of ego to regain the support of shareholders by accepting their decision. This would leave him with two options. He could relinquish the CEO's duties and just keep the title of chairman. That would clear the way for new blood running the bank day-to-day. Or he could remain as CEO under a new independent chairman.''

Wells Fargo boss takes turn on soapbox

Tue, 21 May 2013 05:17:33 GMT

``Now, though, Stumpf appears to be trying on the statesman hat for size. Quarterly earnings calls are another opportunity for a bank chief to take a stand. Stumpf has rarely used his for that purpose, but during Wells Fargo's latest, he wrapped up his prepared introductory remarks with an attack on the growing outcry for new rules targeting big banks. "Some claim that we receive a subsidy or have an unfair advantage from being perceived as too big to fail," Stumpf said. "We disagree."''

How to have a good argument about economics

Tue, 21 May 2013 05:16:14 GMT

``Rule Two. Forget about the Great Depression. It seems that many economists, from Ben Bernanke of the U.S. Federal Reserve downwards, think that the prime goal of current policy is to avoid repeating the mistakes that were made in the 1930s.''