Financial topics

[Higgenbotham]

There'll certainly be a market shock -- we've all known that for some time.

But to say that Deutsche Bank is orchestrating that is pure fantasy.

John

I see a building consensus opinion that if the market gets "too high", an uncontrolled crash is likely. I recently heard Marc Faber say that if the S&P makes a new yearly high this Summer it will likely crash in the Fall. The second part of it is the banks wanted to dump their stock off on the public near the recent high but weren't successful. I think now they're looking for ways to do damage control. They can try to use their political pull, as JP Morgan is trying to do now to cover their multi billion and growing derivatives loss that they cannot extricate themselves from.

Bottom line, my read of the article is "banks are in trouble" and trying to figure out how to get one last big intervention, one last bubble.

[Higgenbotham]

Many people working for low wages already have two, even three, jobs and have for years. Now they are barely getting by on that and don't have time to work another job.

When things get really hard people start trading things directly with each other. One guy trades some extra fish with another guy who has extra potatoes. This has the side effect that nobody pays any sales tax, social security tax, unemployment tax, income taxes, or inflation taxes. After all, we just traded fish for potatoes. Without a government taking a cut five different ways it actually takes far less work to stay alive.

So are you seeing any barter or black market stuff?

No, but I think you're right that we will see more of that, or it's already going on and I haven't seen it. I've been thinking it will really get going with the next leg down in the economy.

[Trevor]

How are you supposed to control a stock market crash at all? They weren't able to do it during the depression and despite all the trillions of dollars we've pumped into the economy, the housing market is still deflating.

Admittedly, it's held steady for a lot longer than I figured it would. When it comes, I'm expecting it to be over a short period of time, around 3-6 months.

[aedens]

We have been past the point of no return for many so that is nothing new. My wife and the Girls I call them as noted into the forums before are seeing issues beyond words. They spend time facilitating just as conveyed before in life support need for food. They are not on the grid because the grid is the damn problem. All the crats wish is numbers to support a filtered number. Even those in actual honest to god need are denied since as some convey it takes months. Some are injured workers as in the walking wounded who bear the burden and in my eyes have more honor than these so called social services we pay taxes to. The work is in the field and also to be convinced other wise that half or less of the Government is of any value at all.

[aedens]

How are you supposed to control a stock market crash at all? They weren't able to do it during the depression and despite all the trillions of dollars we've pumped into the economy, the housing market is still deflating.

Admittedly, it's held steady for a lot longer than I figured it would. When it comes, I'm expecting it to be over a short period of time, around 3-6 months.

We noted back they have purposed 7 and 13 percent market segment breakers. The wasting process has been noted on mainstream the lack of volume and thus the key market aspect of FLOW noted by many observors who note the linkages we conveyed as trap door event.

The feedback loop we noted as a circuit with a certain guage wire and the insulation burned off is here. A 10 guage wire with 50 amps smokes off the insulation sooner than later. The point is it is now here.

"you pretend to be solvent, we pretend to have money." At the end of the day, it is all just one big global monetary circle jerk, only this time in reverse, as the snake of fractional reserve banking has finally started to eat its own tail. With people spending money they don't have, and in debt to their eyeballs to a banking system that itself is just as insolvent, is there any wonder that nobody really panics any more over daily threats the grand reset is finally coming? zh

We have been through this before so we waited for the logical conclusion since socialism and communism is the same calculation.
For those who remember the egg theory to mark signals you should be blowing the dust off to mark stability when you see it later
since your market is dead and lead will not redeem it.

[Higgenbotham]

How are you supposed to control a stock market crash at all?

My idea from an old post is at some point the crash will outrun the ability to counter it. By the time that happens, the size and/or speed of the crash will be immense, given how far the interventions have taken us from reality. From 2010:

A relevant note on this--a headline from yesterday said something to the effect that Geithner is saying speed of response is critical at this juncture. There are limits and the bigger the bubble gets, the faster it leaks when it does start leaking, and the faster the authorities have to move to grow it bigger until finally there comes a time when they cannot move fast enough.

Reading some of these recent articles gives me the idea that the banks have figured this out and they know they are screwed.

[vincecate]

So are you seeing any barter or black market stuff?

No, but I think you're right that we will see more of that, or it's already going on and I haven't seen it. I've been thinking it will really get going with the next leg down in the economy.

It seems barter has started in Greece.

http://worldnews.msnbc.msn.com/_news/20 ... ked-greece

[richard5za]

Reading some of these recent articles gives me the idea that the banks have figured this out and they know they are screwed

Fascinating thought Higgie. Is there anything on the web on this?

[aedens]

Bridge company's to not 4x the taxpayer in theory we touched on in forums for Mezzanine capital for PE finance that refers to a subordinated debt being no man legal status. The crux of the conveyance is Orderly Liquidation Authority (OLA) Others migrated to kick start credit on x company's for those who are not subject to internalized strictures to shed activist investors to comment on. If you properly discern Sismondi’s Nouveaux principes d’ economie politique you will see influence by both Smith and Rousseau and Marx who included it into his work and the Political reality the Eurocrats wished to be. In defence of Sismondi's work I am still working through it as influenced from earlier unpublished control document work noted earlier in the forums I will dig up later.
Another topic of interest is understanding how someone operates allows you to calibrate their responses. The Dunning–Kruger effect is a cognitive bias in which an unskilled person makes poor decisions and reaches erroneous conclusions, but their incompetence denies them the metacognitive ability to realize their mistakes.
Worth a reread: http://www.zerohedge.com/news/spain-gre ... ding-items
SIFI’s contingency plans to include dismissals of management. In our case some years back they violated a covenent contract and they were incarcerated.

[Higgenbotham]

Reading some of these recent articles gives me the idea that the banks have figured this out and they know they are screwed

Fascinating thought Higgie. Is there anything on the web on this?

Mostly what aedens and I have posted here in the past 3 weeks or so. The article above is the most recent. Past articles I posted referred to statements from trading desks saying JP Morgan can't get out their $7 billion dollar losing derivatives position because it is too big to unwind. An article eadens posted refers to a plan JP Morgan has in the event they lose $50 billion. Then there are several other articles posted over the past month that give indirect evidence that the government is moving to counter exchange failure. Finally, there are general discussions about the large amount of derivatives that could cause a systemic collapse if the Eurozone unravels that haven't been posted here but are out on the web.

The most recent link I posted is the one that refers to the idea allegedly put forth by two of the banks that a controlled crash will be needed in order to give the authorities enough time to respond.