Thursday, February 7, 2013


Greetings good citizen,

Nonsense (stock) markets around the globe are bleeding red this morning (while the sneaks on Wall Street managed to ‘paint the tape’ and cause the Dow to have a positive finish at the very end of trading yesterday…

So much for ‘truth’ in financial transactions…in fact it is the prevalence of ‘truthiness’ in today’s business headlines that caught my eye:
E-Mails Suggest JPMorgan Knew Flaws of Some Loans

E-mails and employee interviews filed as part of a lawsuit show that JPMorgan Chase flouted quality controls as it bundled mortgages into financial instruments.

A trove of internal e-mails at JPMorgan Chase, filed as part of a lawsuit, offers a glimpse into how the bank bundled mortgage securities.

Are you ‘shocked’ by this ‘revelation’ good citizen or are you like the majority of the public and more than a little steamed that it’s been five years since this obvious fraud and NOBODY has swung for it…yet.

Which is not a declaration of the people’s justice so much as the Devil will indeed ‘take the hindmost’.

Who may not be particularly ‘guilty’ of anything except of being in the wrong place at the wrong time…like so many of society’s victims.

In yet another (non) shocker, we have the following:
European Central Bank Leaves Interest Rate Unchanged
By JACK EWING 10 minutes ago

The strength of the euro is a sign of confidence, the bank’s president, Mario Draghi, said after the announcement. There have been concerns about the rising value of the currency.

Bank of England Leaves Interest Rate Unchanged
Wall Street Takes a Step Backward 9:49 AM ET
The Euro zone is flatter than a pancake so I will remind you that we are discussing the ‘relative strength’ of the Euro as compared to other ‘lackluster’ currencies.

Which tells you something about what Mr. Bernanke is doing to the dollar (to make our stock market rise ‘senselessly’.)

Which is just what it looks like good citizen, the people who ‘own’ the world see their purchasing power increase while the people who work for them see their purchasing power, er, ‘watered down’.

This explains why there are 7 million people who call themselves ‘self-employed’. (It’s better to be the employer than the employee.)
European Leaders Gather for a Trillion-Euro Budget Debate

The budget represents only about 2 percent of total public spending in the European Union. But it still involves furious horse trading.
The ‘debate’ (such as it is) must be over how long they can keep the shell game of propping up the banking system using the taxpayer’s money?

There is an ‘urgent need’ to return banking to profitability but it’s not going to happen in this generation.

Not much to debate really. Maybe they’ll discuss what might happen to them if they are found out but there really isn’t much point on dwelling upon such unpleasantness.

If the ‘jig were up’ good citizen I’d say the environment is ripe for a ‘hostile takeover’, something similar to how the Nazis swept to power.

I’m also going to predict that it is exactly what will happen…but none of my predictions come to pass. Not yet anyway.
K.K.R.'s Earnings Rise 22% on Investment Gains
By MICHAEL J. DE LA MERCED 25 minutes ago

K.K.R. said on Thursday that it earned $347.7 million in the fourth quarter, as all of its businesses showed strong gains. For the year, the firm reported earning $2.1 billion.

DealBook: Lazard's Profit Surges as Deal Assignments Pick Up 9:17 AM ET
You know as well as I good citizen that there’s nothing ‘new’ under the sun so what we’re witnessing here is the simple consolidation of market share resulting in the consumer being squeezed ever tighter, while their purchasing power sinks into the basement.

You don’t suppose these guys could be on to something?
Ireland to Liquidate Anglo Irish Bank

The government passed emergency legislation to liquidate Anglo Irish Bank, one of the country’s largest, as part of a plan to restructure debt payments.
What do you suppose would happen if we tried that will ALL of the ‘troubled banks’?

If we listen to the pundits it would mean the end of banking as we know it! I, for one, would not be ‘upset’ by the demise of ‘modern banking’.

If I slip my swami turban back on for a moment I see that ultimately there will only be one bank and they will dictate to us how much it will cost to do business.

And if you can’t afford it, tough!

Or our next story:
Weaker Yen Helps Sony Trim Losses for Quarter

The earnings at Sony reflect a revival in the fortunes of other struggling Japanese electronics manufacturers, and its shares have surged almost 60 percent in 2013.
Funny how currency devaluation can be a two-edged sword, depending on how you ‘cook the books!’

Alcatel-Lucent Chief Resigns as Company Posts Loss

The telecommunications equipment maker said it lost $1.85 billion in 2012, and announced the resignation of Ben Verwaayen, its chief executive since 2008.

Credit Suisse Returns to Profit and Plans More Cost Cuts
By JULIA WERDIGIER 28 minutes ago

The chief executive, Brady W. Dougan, is targeting hundreds of millions of dollars in additional cost reductions after Credit Suisse reported a profit of $436 million for the fourth quarter.
Okay so I snuck two in there. The first tells of what ‘globalization’ has done to the former ‘sole source’ of telecommunications equipment in the world.

Bet you’re all pleased as can be that hundreds of thousands of jobs and our future prosperity have been replaced with cheesy plastic phones that won’t stay on the table when you pick up the handset!

Oh and don’t forget, those old indestructible phones that stayed put were free with the service!

But the free market chuckleheads felt you needed to ‘buy’ your equipment!

Which leaves our final story and one you suppose they can return to profitability if they fire everybody? (It's the 'free-market way!')

Long live the free markets! (Read: death to capitalism!)

Thanks for letting me inside your head,


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