Tag Archives: Wall Street fraud

Elizabeth Warren Defines Sleazy Hypocrisy

Financial Markets, Market Manipulation, U.S. Economy, ,

Look in the dictionary under the term “hypocrisy” and there has to be a picture of Elizabeth Warren.  Her latest beaut is sending a letter to Trump criticizing his transition team’s ties to Wall Street.

Yet, how come Obama never received the same type of letter from her?  Obama’s entire cabinet from 2008 to now is riddled with Wall Streeters.  By the way, Lizzie, when the AG and former AG have law practices built around keeping Wall Street out of jail, that is a “tie to Wall Street.”   I guess it’s a matter of convenience to overlook the fact that both Treasury Secretaries are and were deeply tied to Wall Street.

Oh. Wait. I almost forgot.  What about your beloved Hillary?  No Wall Street ties there?  You certainly forgot to chat about this when you were campaigning for her.  Let me review the facts starting with the fact that Wall Street firms were among her largest campaign financiers.  The biggest donor was perhaps the biggest Wall Street criminal:  George Soros.  Speaking of which, is this guy ever going to die and leave us alone?

“Do as say, not as I do” seems to be de rigeur for the people and entities who thought Hillary’s presidency was a matter of formality.  These people forgot that some segment of the public still pays some attention to the truth.

Make no mistake, I’m not issuing support for Trump.  But someone needs to hold people like Miss Warren accountable.  God knows her zombie, slavish supporters won’t.  I remain firm in my convictions that:  the good news is, Hillary lost – the bad news is, Trump won.

Oil Bonds Are Blowing A Big Hole In The Bond Market

Financial Markets, Market Manipulation, U.S. Economy, ,

The shale oil industry was scam by the big private equity funds who took a flier on the shale business because the bond market gave them access to dirt cheap capital thanks to the Fed’s ZIRP.

When the history books are written, the shale oil “boom” will be looked back upon as one of the bigger scams executed beautifully by Wall Street.  Right now several oil shale development companies are in various stages of insolvency or headed toward insolvency. While the bond market in general has become relatively illiquid, the corporate junk bond market is now largely trading in “step function” prices for anything larger than “one-sies and two-sies” ($1 to $ 2 million bond trades).

Every junk bond fund under the sun is completely mismarked and overvalued because the “mark to market” pricing mechanism that has morphed into “mark to quote.”   But I know from talking to contacts on Wall Street that anyone who wants a bid for something more the a very small size of bonds had better be prepared to accept a much lower price than where their position is marked.  Conversely, don’t stick a bid on anything unless you really want to buy it.

Oil Bonds Lose Investors $7 Billion in 10 Days  –  Investors lured back into junk-rated energy bonds by their juicy yields are getting burned. Oil prices have fallen more than 15 percent since March 4 to a six-year low of $42.3, wiping out $7 billion of market value of high-yield debt issued by energy companies.  (LINK).

If true mark to mark were imposed on the junk bond market, that $7 billion loss could easily turn into a $21 billion loss.

Anyone reading this who has investments in high yield bond funds should get out now. The next big event that triggers a big sell-off in the junk market will cut the value of a lot of these junk bond mutual funds down by one-third to a half.   You can exploit the fraudulent bond price-marks in all of these funds by redeeming your investment ahead of the pack.   Pigs are greedy and hogs get slaughtered.  The yield-hog investors are on their way to the meat packing house…

 

Banker Immunity

Financial Markets, ,

Nick of Denali Guide – link on my menu bar – wrote an article called “Bank Immunity,” which explains why the executives at big banks no longer face legal consequences for their crimes:

There were eight hundred forty-nine (849) convictions after the “Keating” Savings and Loan Scandal in the ’90s, and but only one (1) conviction since this meltdown began in 2006, and that was an Egyptian born Credit Suisse employee.  None of the so-called TBTF bank personnel were imprisoned. I don’t think these banks are “Too Big To Fail,” however they are “Systemically Important” Entities. These Banks are not allowed to fail as they are the Muscle for US Global Financial Policies

You can read the rest of the article here:   Denali Guide