Trichet Promises More Money for More Banks in Europe

As the Fed's already-discredited quantitative easing (it was supposed to lower interest rates, not raise them, so we can assume Ben Bernanke was lying, again) funnels money from the Us Treasury to the Federal Reserve to the Primary Dealers (big banks), Europe has apparently taken notice and today, EU President Jean Claude Trichet announced a similar plan for the whole of the European Union, in which the ECB will purchase government (sovereign) debt outright and funnel it to the banks, which, like ours in America, are largely insolvent and lying about their financial conditions.

The race to the bottom, to devalue currency, has reached a new, more insidious stage that threatens the entire economic system of the world, in more pernicious and devious ways than the creators of sub-prime mortgages and credit default swaps could have ever imagined. With endless creation of money out of thin air, rampant inflation is inevitable, in everything except wages, that is, and possible home prices.

Choosing the path of least resistance, kicking the can down the road, so to speak, will lead to unimaginable horrors for millions of Americans and Europeans in terms of decreased buying power and slave wages, a fact that our so-called "leaders" know all too well.

With another $8 billion pumped into the coffers of the banks, Wall Street once again took off and ran with the money, pushing equity prices close to their peaks of early November.

Dow 11,362.41, +106.63 (0.95%)
NASDAQ 2,579.35, +29.92 (1.17%)
S&P 500 1,221.53, +15.46 (1.28%)
NYSE Composite 7,712.25, +108.52 (1.43%)

Advancing issues finished well ahead of decliners, 4442-2054. There were 501 new highs and 42 new lows, very similar to yesterday's figures, which implies that many of them were the very same stocks, pumped by the banks only to be dumped to the johnny-come-lately funds and individual investors. Volume was moderate, since most of the buying was by large firms with super-fast computers.

NASDAQ Volume 2,053,117,000
NYSE Volume 5,584,217,500

Commodities joined in the ramp-up. Oil gained $1.25, to $88.00. Gold was up a mere $1.00, to $1,389.30. Silver added 16 cents, to $28.57.

Tomorrow's non-farm payroll data for November should send stocks to higher highs and even more ridiculous valuations. Scheduled for 8:30 am, the fraud bankers will have plenty of time to adjust the algos on their computers for another glorious day of stock buying.

The following video contains some strong words from Vermont Senator Bernie Sanders over the increasing social inequality in America, citing how, as the middle class collapses, the top 1% earns 23.5% of all income, more than the bottom 50% of all earners. Further, the millionaires and billionaires on Wall Street are making more today, after we bailed them out, than before the bailout. It's poignant and very well worth watching.

Short Sales Helpful, But Read the Fine Print

While the economy seems to be improving, though modestly, one area of concern remains the shattered real estate market, where home prices have tumbled, homeowners owe more than their house is worth - a condition known as being "upside down" - and the recent foreclosure moratoriums by mortgage servicers like Bank of America, Ally Bank and JP Morgan Chase have slowed the pace of residential real estate sales.

With unemployment close to 10%, many homeowners are facing foreclosure and looking for ways to get out from under a financial burden they did not anticipate. One such method is a real estate short sale, which is a process by which the homeowner sells the property back to the bank at a reduced price. This often results in a win for both sides, as the bank does not have to engage in the time-consuming and costly process of foreclosure and the homeowner walks away from the home and mortgage debt, usually without any residual amount owed, known in the industry as a "deficiency," that being the difference between the original amount owed and the amount of the short sale.

Most states provide for deficiency claims, and banks routinely take judgments against short sale sellers, so this is an area which needs to be negotiated with the lender beforehand, and the services of a lawyer, representing the short seller, are strongly advised. Banks don't like to take losses and will normally try to slip in a deficiency clause into a short sale agreement.

For further information, you can can click here to check for all kinds of sales - including short sales - in your area, or for sales nationwide and more information on all kinds of real estate transactions, click here.

Ponzinomics, Feudalism and Fascism of the Highest Order

The following is my response to the video above, and to the wild upswing in the markets today. Just follow the bouncing ball, people, and the sequence of events. Wikileaks founder, Julian Assange, releases a boatload of data and internal memorandum from the State Department which is embarrassing to some of the highest-ranking officials in the world. Assange makes the mistake of telling, in an interview, that he is planning to release data concerning a very large US bank in January of 2011.

By nightfall on the East coast, Assange is wanted by Interpol in relation to rape and "sex crimes." As the day opens in the Far East, markets are pumped higher on positive economic data, and then to Europe, and finally, to the United States, where the Dow rallies for 255 points.

All of mainstream media is suddenly talking about recovery and how Spain won't need a bailout, and how jobs are being created in the US, and how the Christmas season is looking very robust for retailers.

At noon, the Fed, under order of law, courtesy the Dodd-Frank bill, releases the names and amounts of money lent to institutions during the height of the financial crisis in 2008. The list is vast, as are the numbers. It is a mind-boggling declaration of widespread, rampant, credit inflation.

The media continues to excite us with details of how Europe will not suffer any debt contagion, that the crisis is contained. Little time is spent reporting the Fed's release. we are all too busy watching stocks rise, secure in the knowledge that our economy is on the mend.

My contention is that the "rally" is a chimera. It will fade before making new highs, maybe a little bit after, perhaps. But the crony capitalism continues. And Julian Assange will not be a free man for long. He will not be allowed to release any information damaging to any bank, anywhere, at any time.

The banks own most of the world. The ECB and the Fed are only the most visible manifestations of the banking elite. The buy the debt of sovereign nations. They own them. Most are well hidden, or hiding in plain view.

Any questions?

Sure, but first, my reaction to the video. It was a bit over the top. All Americans don't act that way, only the slowest, dumbest, fattest and most ignorant. Unfortunately, their numbers are growing and their progeny will become more cheap, slave labor and credit card users for the rich to fondle and manipulate. That is the elitist game. It's what they do. So, yeah, there are a lot of fat, ignorant slobs out there who have lost nearly any dignity they might have had.

My question is this: What should those of us who believe ourselves to be above that level of wantonness and ignorance do about it? Should we counsel those who are too hypnotized by materialism, television and welfare statism to make better of themselves, to deny materialism and embrace a more wholesome existence?

I'll answer that one myself: Of course we should.

Now comes another antecedent question. After we've counseled our downtrodden brothers and sistahs and they go about their usual wanton ways as though they've heard nothing we've said, suppose one of them comes to us in their miserable way and tries to sell us a laptop that they bought for $198, for $20, for drugs, or food, or gas, or whatever moronic desire they might have at that time. What should we do then?

I'll answer that, too, for myself. I'm sure others might see this differently. My answer, I'd offer them $10, maybe $5. If they're too stupid to see, let them be blind. If you or I don't separate them from their possessions for less than market value, who will? Of course, the elitists, gladly, mind you.

I say it is the duty of all Americans to buy for less than market value and sell for as much as possible, even going so far as to sell to elitists at inflated prices. It is up to the entrepreneurial among us to seize the opportunity the elitists have created for those of us wise enough to make money to do so. I say it is easy if the system plans to endlessly create more money through debt. We should all be pawn-brokers, sharks and sharp deal-makers, for if we are not, surely it will be ourselves at the short end of the next deal and the one after that and so on, until we are slaves ourselves.

Stand up and take from the poor. They have been given our wealth by the rich. Take from the rich, too, if you can. If the economy is going to burgeon upon a sea of debt, then we must open our eyes and aour hands to take what is rightfully ours. we must fortify our own foundations, and to hell from whence it comes, as long as we make it OURS.

Now, if you have any questions, ask somebody else. I've already told you my plan. Acquire.

Dow 11,255.78, +249.76 (2.27%)
NASDAQ 2,549.43, +51.20 (2.05%)
S&P 500 1,206.07, +19.47 (1.64%)
NYSE Composite 7,603.73, +172.79 (2.33%)
NASDAQ Volume 2,136,493,000
NYSE Volume 5,358,660,500

Advances: 4944
Declines: 1632
New Highs: 500
New Lows: 51

Oil: $86.75, +2.64
Gold: $1,388.30, +2.20
Silver: $28.41, +0.20