Implode-Explode Heavy Industries news feed

Bank of America praised, criticized for homeowner relief

Fri, 24 May 2013 04:20:17 GMT

``The accolades were striking in light of New York Attorney General Eric Schneiderman's allegations that Bank of America, as well as Wells Fargo, has failed to help struggling homeowners under the agreement. Schneiderman was one of 49 attorneys general to negotiate the $25 billion settlement with the nation's five largest mortgage servicers, including JPMorgan Chase, Ally Financial and Citigroup, over foreclosure abuses last year. ''

Jack Lew: Treasury Secretary and Oblivious Bank Shill

Fri, 24 May 2013 03:47:31 GMT

``You would think that a financial rating agency would be shouting the praises of a rule that would prevent a failing bank from taking the rest of the economy down with it, but that's apparently not how things go in today's market. Particularly when those rating agencies are paid by the very people they are rating and corrupt enough to help sell garbage on the world marketplace.''

Hilsenrath Hits The Tape: Ignore Everything I Said Two Weeks Ago

Thu, 23 May 2013 13:47:20 GMT

``The irony here is that Hilsenrath is correct, but for another far simpler reason: the Fed simply can not shut down bond buying, at least not voluntarily, without crashing bond the stock market, and the perception that the economy is doing well (it isn't), just because the S&P hits new all time highs day after day.''

Existing-home sales highest since 2009 - Economic Report

Thu, 23 May 2013 13:32:42 GMT

Sales of existing homes in April were 9.7% higher than during the same period in the prior year. Pent-up demand is supporting sales, but tight credit standards and inventories are holding back gains, NAR said. There are also headwinds remaining from high unemployment, though the economy is adding jobs. "Unless the regular turnover increases more aggressively, existing-home-sales growth could flatten out somewhat this year," wrote Yelena Shulyatyeva, an economist at BNP Paribas.''

Peter Schiff: Gold Fools Shouldn't Be Selling

Thu, 23 May 2013 11:20:56 GMT

``Schiff: [The Fed] could unwind it and watch the economy implode--which is what it should do. But I'm saying it can't do so and have the recovery. People say it's just a hard trick: It's like pulling a tablecloth out from under the dishes, and the dishes don't fall. They say it is possible to do that--if you do it just right. I'm saying that that's not the trick. What they have to do is pull the table out from under the cloth.''

Report: 'Rogue' IRS Agent Claim Unraveling

Thu, 23 May 2013 10:53:40 GMT

``So who in the chain of command would have received all these flags? The answer, according to the IRS directory, one woman in Cincinnati, Cindy Thomas, the Program Manager of the Tax Exempt Division. Because all six of our IRS workers have different individual and territory managers, Cindy Thomas is one manager they all have common.''

BoJ Ignores Worst April Trade Deficit Ever

Thu, 23 May 2013 10:01:18 GMT

``For the 28th month in a row Japan trade deficit has dropped YoY and its 12-month average is now at its worst ever.''

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. ''

Hedge Funds In Record Gold Short Position

Thu, 23 May 2013 09:43:36 GMT

``As the following chart of the day from Bloomberg shows, as of this week, hedge funds have made "the biggest bet ever" against gold by taking Comex gold shorts to all time highs.''

Japan's Nikkei dives 7.3% in spectacular U-turn

Thu, 23 May 2013 09:38:48 GMT

Japanese shares suffered their worst losses in more than two years on Thursday after data showing an unexpected contraction in Chinese manufacturing activity added to worries the Federal Reserve could downscale its bond purchases.
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The slump came after a surge in Japanese government bond yields, which forced the Bank of Japan to offer 2 trillion yen ($19 billion) in funds to calm investor nerves. The central bank announced the fund-supplying operation after 10-year JGB yields soared to their highest level in more than a year, citing "the unreasonable increase" in volatility.

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. ''

Mortgage Settlement Yields $50B of "Aid"; But Not All Aid Dollars Equal

Wed, 22 May 2013 14:41:10 GMT

The latest figures shifted that equation, with the banks more often giving homeowners principal or interest reductions on their loans or refinancing them into new loans, enabling them to stay in their homes. Those benefits totaled $29.2 billion to 387,420 homeowners since the program began in March 2012, according to Smith's tally of the bank reports.
By comparison, aid in the form of short sales totaled $20.1 billion to about 175,000 borrowers.

One prominent critic, Kevin Stein of the California Reinvestment Coalition, said the assistance still involved too little reduction of first-mortgage balances -- the action, he said, that was "meant to be the heart of the agreement."

In California, Stein said, relief skewed too heavily toward short sales and writing off second liens -- delinquent credit lines and second mortgages that would be worth little or nothing if an underwater home went through foreclosure.

Stein gave Bank of America, which is required to deliver by far the most assistance to borrowers, good marks during the latest quarter, saying its assistance was delivered almost entirely by reducing principal on first mortgages.

Wells Fargo, by contrast, continued to use short sales heavily, Stein said. It dispensed aid about equally through short sales and principal reductions, he said.

Hong Kong Police Investigate Failed Mercantile Exchange

Wed, 22 May 2013 14:12:37 GMT

``Police began probing the Hong Kong Mercantile Exchange Ltd., owner of the failed commodities market set up by a member of the city's cabinet, after the securities regulator found suspected financial irregularities.'' -- Well, maybe it's not coming back...

SAC's Cohen Said to Mull Deal That Would Shut Hedge Fund

Wed, 22 May 2013 14:10:10 GMT

``Cohen has discussed an agreement under which his SAC Capital Advisors LP would admit wrongdoing but wouldn't be prosecuted unless it broke the law again, said the person, who asked not to be named because the talks are private. As part of the deal, known as a deferred prosecution agreement, Cohen would close the Stamford, Connecticut-based firm to outside investors and make it a family office that manages his personal fortune. SAC Capital probably would also pay a fine.''

EU Committee Approves Bail-In Law

Wed, 22 May 2013 14:06:16 GMT

``On Monday, a group of European lawmakers in the house's economics committee voted that, from 2016, large depositors in the European Union might suffer losses if a bank gets into serious trouble, echoing a deal in Cyprus where wealthy depositors were hit hard at two banks to save the country from bankruptcy.''

Abe's Resurgent Japan Hurt by Lack of Business Spending

Wed, 22 May 2013 14:03:56 GMT

``"Stocks and the yen may have come back, but the state of the real economy is very different," said Watanabe, 49, who has no plans to raise wages for his 17 employees and hasn't paid a bonus since 2008. "It's impossible for me to be optimistic." ''

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.''

Ron Rosen - Silver To Soar A Stunning 400% & Gold $1,500 In 10 Months

Wed, 22 May 2013 13:38:08 GMT

``So we've hit the bottom and now we are headed higher, and there is no limit as to how high gold and silver can go from here. Looking back, this will be seen as the greatest opportunity of all if someone has the guts to get in the market now...'' -- I'm not sure how he is so confident the cartel couldn't find another way to suppress the metals for another year, but submitted for your consideration anyways...

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.
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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.
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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.