The Devastation Of Capitalism And Free Enterprise

Posted at 2:41 PM (CST) by & filed under General Editorial.

Dear Friends,

There is no end to this. Every friend of the present and past Washington Moguls in this are on the bailout list with no end to the financing of the losers on OTC derivative activities. These funds go in the front door and out the back door to unidentified others.

Markets everywhere are being manipulated and raped by entities that are being provided funds from the Federal Reserve, the hedge funds.

Anyone that thinks Bernanke is stupid is stupid themselves. The only conclusion with this, the lacking reinstatement of the uptick rule, and no action against the naked shorts is that devastation of capitalism and free enterprise is a desired result.

There will come a time in gold when the worldwide demand will totally outstrip manipulative fake paper supply.

Hyperinflation is unavoidable. The holes of many dykes will not stand against the flood of those that are coming to understand how crazy what is being said publicly right now is. It is becoming painfully obvious even to a dedicated numnut.

Respectfully yours,
Jim

Bernanke Says U.S. May Need to Expand Bank Rescue
By Craig Torres and Scott Lanman

March 3 (Bloomberg) — Federal Reserve Chairman Ben S. Bernanke said policy makers may need to expand aid to the banking system beyond the $700 billion already approved and take other aggressive measures even at the cost of soaring fiscal deficits.

“Without a reasonable degree of financial stability, a sustainable recovery will not occur,” the Fed chairman said today in testimony prepared for the Senate Budget Committee. “Although progress has been made on the financial front since last fall, more needs to be done.”

Bernanke’s comments suggest he sees a role for bigger federal outlays as the Obama administration seeks congressional approval for a budget of $3.55 trillion for the fiscal year beginning in October. President Barack Obama has already signed into a law a $787 billion economic stimulus package of tax cuts and government spending.

Obama’s first budget seeks standby authority for as much as $750 billion in new aid to the financial industry. Whether those funds will be needed “depends on the results of the current supervisory assessment of banks” and the evolution of the economy, Bernanke said.

Bernanke said policy makers would have “preferred to avoid” what is likely to be the largest ratio of federal debt compared with gross domestic product since the end of World War II, and he urged lawmakers not to lose sight of fiscal discipline.

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Jim Sinclair’s Commentary

With one side of his mouth Bernanke speaks of improving the condition of the Fed Balance sheet as soon as the anticipated recovery in everything economic occurs. On the other side in present times as below, the Fed embarks on buying more worthless crap from the Trillionaire Money Club mafia.

Fed Says Loan Plan to Start March 25, May Add Rentals
By Scott Lanman

March 3 (Bloomberg) — The Federal Reserve said its $1 trillion program to prop up the market for auto and business loans will start disbursing funds March 25 and will probably accept securities backed by vehicle-fleet and equipment leases.

The Fed also lowered interest rates and so-called collateral haircuts for loans tied to asset-backed securities with guarantees by the Small Business Administration or to government- guaranteed student loans, the central bank and U.S. Treasury said in a statement in Washington.

Chairman Ben S. Bernanke and his colleagues, after cutting the benchmark interest rate almost to zero, are counting on the Term Asset-Backed Securities Loan Facility, or TALF, to help revive credit and end what may become the deepest U.S. recession since World War II. The government today signaled it will use the program to support an even broader array of credit markets.

“The expanded program will remain focused on securities that will have the greatest macroeconomic impact and can most efficiently be added to the TALF at a low and manageable risk to the government,” the Fed and Treasury said.

The Fed and Treasury “currently anticipate that ABS backed by rental, commercial, and government vehicle fleet leases, and ABS backed by small-ticket equipment, heavy equipment, and agricultural equipment loans and leases will be eligible for the April funding of the TALF,” which is scheduled for April 14, the agencies said.

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Jim Sinclair’s Commentary

This stuff is as toxic as anything out there, yet there is pride-full leaks concerning earnings from OTC derivative granting operations.

This is akin to praising a person for effectively spreading Ebola.

It appears as if these really bad people will never stop until everyone is dead, them included by their own hand.

JPMorgan Said to Reap $5 Billion Derivatives Profit (Update1)
By Matthew Leising and Elizabeth Hester

March 3 (Bloomberg) — JPMorgan Chase & Co. managed to generate $5 billion in profit during the worst year in Wall Street history by trading over-the-counter fixed-income derivatives, two people with knowledge of the results said.

The largest U.S. bank by market value, which reported $5.6 billion of total net income in 2008, hasn’t disclosed earnings for its interest-rate swap, municipal bond and foreign-exchange derivatives group. The unit was among the most profitable at the New York-based company, said the people, who declined to be identified because they weren’t authorized to divulge the figures. JPMorgan spokeswoman Kristin Lemkau declined to comment.

The JPMorgan trading desk, led by the 38-year-old Matt Zames, who previously worked at hedge fund Long-Term Capital Management LP, may have benefited as the collapse of Lehman Brothers Holdings Inc. and JPMorgan’s takeover of Bear Stearns Cos. left companies and hedge funds with fewer trading partners in the private derivatives markets. JPMorgan emerged “unscathed by the disasters” on Wall Street and positioned to capture more revenue as trading volumes grew, said Craig Pirrong, a finance professor at the University of Houston.

“It’s a flight to quality,” Pirrong said. “They expanded the scale of business, the number of trades people wanted to do with them, and it gave them pricing power.”

Derivatives are contracts whose value is derived from an underlying asset such as stocks, commodities or interest rates. Over-the-counter refers to a type of private, unregulated derivative contract banks trade amongst themselves or with clients.

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