Jim,
Taibbi has done another great piece.
CIGA Ursel
BP’s Shock Waves
How the oil giant’s catastrophic spill in the Gulf could trigger another financial meltdown
By Matt Taibbi
Sep 16, 2010 11:30 AM EDT
It was sickening enough when British oil giant BP set new standards for corporate scumbaggery in the Deepwater Horizon oil spill, turning the Gulf of Mexico into its own personal toilet and imperiling entire species of wildlife in an attempt to save a few nickels. But with the Gulf geyser finally capped, there’s still a way for BP to cause an even more unthinkable disaster: an AIG-style, derivative-fueled financial shitstorm. If the company decides to declare bankruptcy — a very real possibility with these bastards — it could trigger chaos in our casino system of finance, underscoring the insane levels of leverage and systemic risk we have left in place, even after the global economic crash of 2008.
The first serious whiff of trouble came on June 15th, when Barack Obama manned up and went on national TV to tell the nation that he wasn’t going to let BP worm its way out of this one. "We will make BP pay for the damage their company has caused," he declared, vowing to push BP to set aside $20 billion to clean up its mess and compensate victims.
Jim,
Resistance is broken. Next level of attention is 1390 – 1400.
Kind regards,
CIGA Stefaan
Dear Eric,
There is a greater why to this than the obvious.
The resignations are hitting hard and fast. the head of the FDIC has had some hard words for the administration.
What is the real cause of this phenomena? Could it be statistical?
Regards,
Jim
The Exodus Continues
CIGA Eric
The metaphor of rats jumping from a shinking ship comes to mind. This clears the way for the new New Deal II.
Financial bailout chief announces resignation
Herb Allison, the head of the government’s $700 billion financial bailout program, announced on Wednesday that he would resign.
Allison said in a letter to his colleagues in the Treasury Department’s Office of Financial Stability that they had accomplished a great deal.
Lawrence Summers to leave economic council, return to Harvard
President Obama’s top economic adviser, Lawrence H. Summers, will step down as director of the National Economic Council after the November elections and return to a teaching post at Harvard University, the White House announced Tuesday.
The departure of Summers, 55, will complete the turnover of three of Obama’s four top economic advisers as the administration struggles with the political fallout of a stubbornly weak economy.
Dear Jim,
Hope you are enjoying Tanzania. Please see the enclosed note below. Deutsche Bank is bullish on gold, citing the usual catalysts and fundamentally driven bullishness.
Congratulations on your calls which are right on as always.
Monty
Click image to enlarge in PDF format
