Archive for March, 2008

Top Picks ~ Week of March 24, 2008

Money & Markets

The Sheltering Storm: Uncertainty on Section 8
By Matt Schwarzfeld - CityLimits.org (24 Mar 2008)
-~ Catherine’s comment: Are states and cities expected to vote Democratic in November scheduled to lose their HUD money?

Iceland Contagion May Spread Far And Wide
By Ambrose Evans-Pritchard - London Telegraph (27 Mar 2008)

People Don’t See Yet It’s a Money Problem, But They Will
By Murray Pollitt - Pollitt & Co. (24 Mar 2008)

South Korean Pension Funds Shuns U.S. Debt
By Michael MacKenzie - Financial Times, London (26 Mar 2008)

Chinese Exporters Shun Flagging Dollar
By Robin Kwong - Financial Times, London (27 Mar 2008)

Waiting for Armageddon
At The Economist.com (27 Mar 2008)

RLPC-Morgan Stanley Credit Lines To Be Downsized-Sources
By Faris Khan - Reuters (27 Mar 2008)

Bear’s Bondholders, Not Public, Should Pay
By John P. Hussman - HussmanFunds.com (24 Mar 2008)

CPM Gold Yearbook 2008 - An Interview on The Financial Sense Newshour
Jim Puplava interviews Jeffrey Christian (22 Mar 2008)

Hoarding by Banks Stokes Fears on Credit Crisis
By Chris Giles & James Politi - Financial TImes, London (25 Mar 2008)

Main Street Sacrificed to the Gods of Wall Street
By Trader Mark - SeekingAlpha.com (20 Mar 2008)

Statement on Financing Arrangement of JPMorgan Chase’s Acquisition of Bear Stearns
From the Federal Reserve Bank of New York


From Wikipedia

~ Update on Clear Channel

Clear Channel Deal in Legal War
From BBC News (26 Mar 2008)

Clear Signals That The Banks Are Shutting Their Doors
By Slobhan Kennedy - Times Online (28 Mar 2008)

~ View previous blog posts on this issue: (1) (2) (3) (4)

Revealed: How Sovereign Wealth Funds Were Left Nursing Multibillion Losses
By Richard Wray - The Guardian.co.uk (22 Mar 2008)

Fed’s Rescue Halted a Derivatives Chernobyl
By Ambrose Evans-Pritchard - London Telegraph (23 Mar 2008)

JPMorgan Raises Bear Stearns Offer, Fed Balks
At Daily Intel (24 Mar 2008)

Morgan’s Revised Bid for Bear Emphasizes Original Ripoff, Fed Desperation
By Charles Reiter - Reuters (24 Mar 2008)

Disclosure Reports on Contributions to Eliot Spitzer’s Campaign for Governor
At FollowTheMoney.org

_________________________________________________________

Precious Metals

Chinese Banks Allowed to Trade Gold Futures
Editor: Yan Liang - China View (24 Mar 2008)

_________________________________________________________

Mortgage Market

Bank of England Preparing To Buy Banks’ Junk Mortgages
By Chris Giles & Krishna Guha - Financial Times, London (26 Mar 2008)

L.A. Land ~ California Freefall: Home Prices Down 26% in February
By Peter Viles - Los Angeles Times (26 Mar 2008)


From PrudentBear.com

Fed Joins Bank of England In Denying Junk Mortgage Purchase Plan
By Sumeet Desai & Timm Ahmann - Reuters (22 Mar 2008)

Central Banks Plot Mass Purchase of Junk Mortgages
By Chris Giles & Krishna Guha - Financial Times, London (21 Mar 2008)

Rubin Calls for Urgent Government Action to Stem Foreclosures
By Rich Miller - Bloomberg.com (21 Mar 2008)

Note from Catherine: For Bob’s role in choosing bubbles rather than real solutions when he helped start the housing bubble, read Dillon, Read & Company & The Aristocracy of Stock Profits.

_________________________________________________________

Food & Health

Rising Prices Hit the Organic Supply Chain
By Samuel Fromartz - Natural Foods Merchandiser (24 Mar 2008)

Food Stamps Double Since ‘01
By Catherine Candisky - Columbus Dispatch (22 Mar 2008)


Click the image to find out…

Organic Winter Wheat Topped 100 Bushels Per Acre In Bozeman Last Harvest
By Carol Flaherty - Montana State University (17 Mar 2008)

_________________________________________________________

Life

Gone in 2 Minutes: Mac Gets Hacked First in Contest
By Robert McMillan - Yahoo News (27 Mar 2008)

_________________________________________________________

Geopolitical

Truckers ‘Going Broke’ And Threatening to Strike
By Barb Ickes - Quad-City Times (19 Mar 2008)

“I Could Tell You But Then You Would Have To Be Destroyed By Me
Emblems from the Black World”
- By Trevor Paglen

US Legal System ‘Worse Than Russia’
By Michael Herman - TimesOnline (18 Mar 2008)

Inside a Government Chemtrail Aircraft
From Tim White - CloakAndDagger.de

Energy, Water in “Catch-22″
By John Fleck - Albuquerque Journal (20 Mar 2008)

_________________________________________________________

Event: Catherine on Flashpoints Tonight

Catherine and Dennis Bernstein continue their conversation about financial markets and current events on Flashpoints Radio tonight:

Event: Catherine on TruNews Radio

Click here to navigate to the TruNews website and view their event calendar.

Another of Our Heroes

The Chronicle on Boverton Beaver’s Bakery
By Phil Cubeta - Gift Hub (25 Mar 2008)

As a reporter for The Chronicle of Philanthropy’s Give and Take, you are sitting, knees crossed, and back straight, in a public relations event promoting a Double Bottom Line Social Venture Bakery in Detroit. From the window you can glimpse a prison looming like a fortress.  The meeting is run by a Harvard MBA employed by Beaverton Social Venture Foundation funded with money from a Wall Street Wizard,  Boverton Beaver, who made his billions buying and selling weapons manufacturing companies, including one that specializes in anti-personnel land-mines made to look like children’s toys.  He also served as Assistant Secretary of the Navy, and as a lobbyist for a defense contractor. He was indicted for fraud, but found innocent via a hung jury after a prolonged trial costing millions to litigate.  He is best known for his trophy wife, a former Ms. Nude Miami Beach, now on the Board of a Conservative Think Tank, and for his contribution to the theory and practice of social venture philanthropy.

. . .

Our Hero!

Farmer Percy Schmeiser settles contamination battle with Monsanto
By Vicky Uhland - Natural Foods Merchandiser (25 Mar 2008)

Canadian canola farmer Percy Schmeiser, who has battled biotech company Monsanto for a decade, last week settled a lawsuit that he said will allow farmers with fields contaminated by Monsanto’s genetically modified seed to get “compensation without giving up their freedom of speech or their future rights to sue.”

Schmeiser, 77, has been involved in two lawsuits with Monsanto since 1998, after the company discovered its GM Roundup Ready canola seeds growing on Schmeiser’s 1,400-acre Saskatchewan farm. Monsanto billed Schmeiser for unauthorized use of its seed, but Schmeiser claimed the seed drifted onto his fields from neighboring farms and passing trucks. In 2004, the Supreme Court of Canada ruled that Schmeiser violated Monsanto’s patent by knowingly replanting and harvesting the GM seeds, but he didn’t have to compensate Monsanto because his profits weren’t affected by the Monsanto seeds.

. . .

The Bear Skinning Continues

So now JP Morgan is going to pay $10 per share for Bear Stearns?

JP Morgan Agrees to Increase Bear Price
By Kevin Kingsbury - Wall Street Journal (24 Mar 2008)

Bear May Have Lived
By Paul Tharp - New York Post (23 Mar 2008)

We can be confident that if the deal doesn’t make enough powerful people happy, it can just be re-jiggered tomorrow.

Since the citizenry is picking up the tab with an inflation tax, it wouldn’t be fitting that we get a piece of the equity so best not to let it look too rich. That’s us, Mr and Mrs. John Q. Public, all risk, and no reward. So might as well raise the price so the Bear Stearns shareholders can get more. Otherwise the $6 billion litigation budget might have to go up.

Don’t you just feel terrible for Bear Stearns? After years of profiting from systematic ethnic and economic cleansing of America’s neighborhoods and pushing crappy paper globally, they got rolled by the Rockefeller interests.

Big financial mafia swallows smaller financial mafia. Old money takes out new money. The centralizers keep centralizing. That’s how they do.

More on Mortgage Fraud and Sex

For those who want to understand the relationship of sex to mortgage fraud, The Franklin Cover-Up by Nebraska Senator John DeCamp is a must read. This is because it is essential to understand what Elliot Spitzer and Henry Cisneros were not doing to see their situation in context. First, they were not engaged in pedophilia. They were having sex with consenting adults. Second, they paid their call girl or mistress out of their own pocket. They did not access the freebies provided by intelligence agencies and secret societies.

xx

The Franklin Cover-Up: Child Abuse, Satanism, and Murder in Nebraska
By John W. Decamp

More on Mortgage Fraud and Sex

The Secretary of the Department of Housing and Urban Development after Jack Kemp was Henry Cisneros.

Cisneros was HUD Secretary in the Clinton Administration from 1992 to 1996. For the steps to be taken to engineer the housing bubble, particularly economic and ethnic cleansing in American neighborhoods, euphemistically referred to as sub-prime mortgage or predatory lending, Cisneros had to go.

Cisneros departure was arranged with the help of a sex scandal, investigated first by the FBI and the Public Integrity section of the Department of Justice (same as Spitzer) and then by an Independent Counsel. Cisneros’ wrongdoing was inaccurately describing the amount of money he paid his former mistress in interviews with the FBI during the vetting process for government officials.

Cisneros was indicted on 18 counts of conspiracy, giving false statements and obstruction of Justice. His mistress plead guilty to 28 charges of bank fraud, conspiracy to commit bank fraud and obstruction of justice. Cisneros negotiated a plea agreement, under which he pleaded guilty to a misdemeanor count of lying to the FBI, was fined $10,000, did not receive jail-time or probation but did receive a Presidential Pardon.

Cisneros was replaced by Andrew Cuomo who was instrumental in reengineering HUD and its programs to support a housing bubble.

Cisneros apparently got the message to get on board with the housing bubble. Recent reports note that he earned $5 million in stock and board compensation as a director of Countrywide before resigning as Countrywide was rescued.

Top Picks ~ Week of March 17, 2008

Money & Markets

Federal Agencies Running on Fumes
By Richard Sammon - The Kiplinger Letter (19 Mar 2008)

Don’t Worry About An Audit
By Kevin McCormally - Kiplinger.com (21 Mar 2008)

Southeast Asian Central Banks Meet About Dollar
By Muhamad al Azhari & Andreas Ismar - Reuters (21 Mar 2008)

Investment Banks Are Borrowing From Fed
By Dan Wilchens - Reuters (19 Mar 2008)

Fed’s ‘Extreme’ Intervention ‘Raises Some Real Questions’
The Wall Street Journal (18 Mar 2008)

Burlington Northern’s Freight Demand Slows On Dollar
By Angela Greiling Keane - Bloomberg.com (19 Mar 2008)

Hunt for £ 100m Rogue Trader After Attack On HBOS Share Price
By Robert Winnett & Philip Aldrick - London Telegraph (21 Mar 2008)

States’ Budget Crises Will Hurt Millions
By Aaron C. Davis - Associated Press (17 Mar 2008)

American Was Conned — Who Will Pay?
By Larry Elliot - The Guardian (17 Mar 2008)

Bailouts Better Than Returning to 1930s
By Ambrose Evans-Pritchard - London Telegraph (19 Mar 2008)

Amsterdam’s Small Currency Shops Stop Taking Dollars
By Svebor Kranjc - Reuters (18 Mar 2008)

Whistleblower Exposes Insider Trading Program at JP Morgan
By Kevin Wilson, et al - WikiLeaks.org (17 Mar 2008)
~ Click here to read the full memo.

Silent Fortress
By Carl Gutierrez - Forbes.com (18 Mar 2008)

xx

xx

Backstopping Bear, Morgan Saved the Shadowy Derivatives World
By Serena Ng & David Reilly - Wall Street Journal (19 Mar 2008)


Source: New York Pension Fund / Click the image to view previous blog post on this issue.

Debt Reckoning: U.S. Receives a Margin Call [Must subscribe to view full article]
By Liz Rappaport Justin Lahart - Wall Street Journal (15 Mar 2008)

Gross, SEC Fail to Break Auction-Rate Bond Paralysis
By Jeremy R. Cooke - Bloomberg.com (14 Mar 2008)

Goldman Sachs to Reveal $3bn Hit
By Mark Kleinman & Louis Armistead - London Telegraph (16 Mar 2008)

The Man and the Monkeys: A Wall Street Fable
By Chief Cynic - iTulip.com (15 Mar 2008)

Religious Investors Call for Boycott of GM Sugar
By Chris Jones - NutraIngredients-usa.com (5 Mar 2008)

Fed Creates Another Loan Fund For Investment Banks, Cuts Rate
By Jeannine Aversa - Associated Press (16 Mar 2008)

Here Comes The Worldwide Currency Debasement
By Ambrose Evans-Pritchard - London Telegraph (17 Mar 2008)

Bear Turns Out To Be Worth Just A Fraction Of Its Office Building
By Andrew Ross Sorkin & Landon Thomas - New York Times (16 Mar 2008)

MZM Growing at Annualized Rate of 30.9%

MZM is an acronym for "Money Zero Maturity" ~ A measure of the liquid money supply within an economy. MZM represents all money in time deposits, plus all money market funds. From investopedia.com.

Repurchase Agreements and Covert Nationalization of Banks
By Steve Randy Waldman - interfluidity.com (8 Mar 2008)

Housing Group Challenges Fed’s Bear Stearns Deal
By Joanne Morrison - Reuters (16 Mar 2008)

Venezuela Reported Moving Some Oil Contracts to Euros
From Agence France-Press (15 Mar 2008)

President Convenes Plunge Protection Team on Monday
By James Vicini & Tim Ahmann - Reuters (15 Mar 2008)

In The US, Big Brother Monitors Your Every Financial Transaction
By Thomas Frank - USA Today (12 Mar 2008)

Hall of Fame - Billionaires
At Newsmeat.com (Updated every Monday)

Bear Stearns Exposed as a Bank Saddled With Toxic Sub-Prime Debt
By Ambrose Evans-Pritchard - London Telegraph (16 Mar 2008)

JP Morgan Closes In On Buying Bear Stearns
Editing By Tim Dobbyn - Yahoo Finance (16 Mar 2008)

Morgan Races to Acquire Bear Before Asian Markets Open
By Dennis K. Berman, et al - Wall Street Journal (16 Mar 2008)

Paulson Defends Bear Bailout, Evades Issue of More Bailouts
By Jeannine Aversa - Associated Press (16 Mar 2008)

~ Updates on the Eliot Spitzer Story

Fannie Mae Reaches Agreement With new York Attorney General, OFHEO, Regarding Home Appraisals; Investigation Terminated
News Release - Fannie Mae (3 Mar 2008)

Pat Foye, New York Development Chief, Resigns
By Eliot Brown - The New York Observer (17 Mar 2008)
~ View previous blog posts on this issue: (1) (2)

Welcome to the Sanity Check
"Your authoritative source on stock market manipulation & Wall Street corruption."
_________________________________________________________

Precious Metals

Gold Crashes As Investors Bail Out
By Ambrose Evans-Pritchard - London Telegraph (21 Mar 2008)

Silver Shortage: 19 Dealers Reported "Sold Out"
By Jason Hommel - SilverSeek.com (20 Mar 2008)

China Can’t Save Metals Boom From US Slowdown
By Polly Yam & Nick Trevethan - Reuters (13 Mar 2008)

Credit Woes Hit New Mine Projects, Others Survive
By Eric Onstad - Reuters (14 Mar 2008)

_________________________________________________________

Mortgage Market

HTFC Mortgage Company CEO Has a Potty Mouth
The Consumerist.com (21 Mar 2008)

UBS Says to Publish Watdchdog Subprime Probe
By
Douwe Miedema - Reuters (14 Mar 2008)
~ Ethos Fund

_________________________________________________________

Life

No Small Plan: Public Boarding Schools for Chicago
From the Chicago Tribune (18 Mar 2008)

Growing Community - Photos: Tent City in Ontario, California

xx

xx

xx

Showing Us Your Green - A Gallery of Green Lifestyles
MSNBC

We are All Shamans-in-Training
By Paul Levy - awakeinthedream.com (Mar 2008)

_________________________________________________________

Geopolitical

Japanese MP Yukihisa Fujita Speaking at Oz 2008 911 Truth Conference

Shenon 9/11 Commission Exposé - Not the Last Word
By Kyle F. Hence - Scoop Independent News (21 Mar 2008)

New Video of BigDog Quadruped Robot Stunning - It’s Spooky
At Gizmodo.com (21 Mar 2008)

NASA Wary of Relying on Russia
By Marc Kaufman - Washington Post (7 Mar 2008)

U.S. Town Splits After Quenching Nestlé’s Thrist For Water
By Erica Gies - International Herald Tribune (19 Mar 2008)

Sequoia Warns Princeton Professors Over E-Voting Analysis
By Declan McCullagh - CNetNews.com (18 Mar 2008)

Supreme Court Hears Arguments in Closely Watched Gun Case
From Associated Press (18 Mar 2008)

Supreme Court Inc.
By Jeffrey Rosen - New York Times (16 Mar 2008)

House Goes Behind Closed Doors To Debate Surveillance Bill
Web Produced By: Neil Relyea - WCPO.com (14 Mar 2008)

_________________________________________________________

More on Bear Stearns-JP Morgan Deal

As if last weekend’s shotgun merger agreement between Bear Stearns and JP Morgan was not wild enough, things just keep getting weirder. Bear Stearns stock is trading above $5, which says something about what the market thinks of Morgan’s $2 purchase.

Rather than address the fact that NY pension funds lost millions (1) (2) (3) on the Bear Stearns deal, the new Governor and First Lady of New York instead entertained the global audience with details of their sex lives:

Governor Paterson Admits to Sex With Other Woman For Years
By Juan Gonzalez - New York Daily News (18 Mar 2008)

Governor Paterson Amits To Numerous Affairs
By Celeste Katz & David Saltonstall - New York Daily News (18 Mar 2008)

While other pension funds simply spun that the millions lost was not a lot of money or they made it back on their JP Morgan stock:

Bear Stearns Sale Buoys Most Public Employee Pension Funds
By Jim Provance - Blade Columbus Bureau Chief (18 Mar 2008)

While the individual shareholders who are scheduled to lose more than $1 billion at closing tried to switch-hit the deal, it turns out that is a formidable task. JP Morgan has built in a $6 billion litigation budget and the deal includes some unique poison pills:

JP Morgan’s Bear Stearns Deal Reveals Poison Clauses
By James Quinn, Wall Street Correspondent - London Telegraph (21 Mar 2008)

With a .75% drop in interest rates, a new Fed loan facility, (1) (2), bank coffers filled by a VISA stock offering and increased limits on Fannie Mae and Freddie Mac, the financial mafia was rich with new resources. Perhaps the greatest support for these stocks came not just from the massive injection of capital, but the clear message that the law no longer applies to them.

What the financial mafia may have forgotten is that their liquidity depends on not just the Fed’s ability to print money, or the Treasury to live in fear of their derivatives mess. Real liquidity is ultimately determined not in the bubble economy but in the real economy. Millions of honest, hardworking people must be willing to faithfully get up and go to work to process the paper of financial systems or allow their savings to be invested in financial assets. If the course of events causes a critical mass of serious people to feel that financial institutions and media are violent children who can coerce government officials into being pornographic entertainers, the myth of the rule of law is slipping and all bets may soon be off.

Fed, Wall Street Might Not Survive These Questions on Bear Deal
By Martha Graybow - Reuters (20 Mar 2008)