Thread: Facing A Total Breakdown Of Financial Markets

Facing A Total Breakdown Of Financial Markets
Posted: October 28 2009

Yet another bank bights the dust, stocks have net outflows of capital, big insider sell offs and other bad moves that enable insiders to control the market, biggest S&P rally ever, Plunge protection team working overtime, Gold in a new phase

This is another victim of the FDIC Friday Night Financial Follies.

Early Friday morning, state and federal agents walked into the Bank of Elmwood and closed the failed 49-year-old independent bank after a year of struggling to improve a bleak financial situation, officials announced Friday.

The Wisconsin Department of Financial Institutions shut down the bank and turned it over to the Federal Deposit Insurance Corporation. The FDIC in turn sold it to an Oak Creek-based bank.

The FDIC entered into an agreement with the Oak Creek-based Tri City National Bank to assume all of the Bank of Elmwood deposits and assets.

As of Sept. 30, 2009, Bank of Elmwood had total assets of $327.4 million and total deposits of approximately $273.2 million.

No advance notice of the closing was given, according to FDIC officials.

Stock funds have had net outflows of capital out of the market for the past six weeks. Insiders at corporations are selling with glee. Thirty times more sell orders than buy orders. Even CALPERS, the world’s fourth largest pension fund has cut equity holdings to 49%, the lowest since 1993. British pensions have the lowest equity holdings in 35 years. This leads us to believe that, due to the character of pension plans, that long-term momentum has changed and will remain more conservative for some time to come. They could cut back much further and we may not see them on the long side in a big way until a bottom is reached and a decisive uptrend is in place. It is no wonder US Treasures are so strong. We know fiduciaries are perpetually wrong, but irrespective the trend for whatever reason is for less participation in the equity market. Maybe for once they are being smart and following the insiders who are selling 30 times more than they are buying. A recent example was the CEO of one of our short recommendations, Robert Toll, of Toll Brothers, a homebuilder, who last month sold 1.6 million shares of his company’s stock. Stock repurchases are off 65% as well.

During September and October we still saw short covering. We also see that 73% of NYSE trading was of the black box variety, program trading. There are 16 firms front-running all market trades and the SEC refuses to do anything about it, so that Goldman Sachs and JP Morgan chase can further enrich themselves, illegally. The SEC calls it flash-trading not what it really is, stealing. And, yes, the SEC still refuses to stop naked shorting, which is also illegal - another trove of riches for the anointed insiders at Illuminati run brokerage firms. The remainder of the market strength comes from banks, brokerage firms and insurance companies who are leveraging funds received from the Treasury and the Fed, some $12.7 trillion. That is what this really is all about.

This is the first time ever that the S&P 500 has ever rallied 60% in six months. The Dow reached 10,000, when it should not have exceeded 8,500. That shows you the distortion and manipulation going on and points up the now blatant activities of the President’s “Working Group on Financial Markets,â€

your not broke America - your dirt broke

AirborneSapper7, please give me the executive summary. In three sentences, what does it mean?

I'm confused by all the shoptalk gibberish:
"a decisive uptrend" (what constitutes "decisive" except in hindsight?),
"stock repurchases,"
"short covering,"
"black box variety of NYSE trading, program trading,"
"firms front-running all market trades,"
"flash-trading" (an SEC euphemism for stealing),
"naked shorting" (is that only legal for some banks and the government?),
"always on the outside looking in, permanently known as goldie,"
"pricing into the market earnings not only for 2010 but 2011,"
"trailing P/E on operating earnings" distinguished from "reported trailing earnings,"
"a total breakdown of financial markets" (will markets break down even for China, OPEC, and a Eurocentric OWG?),
"the dollar carry trade" (fees charged to keep wheelbarrows of green stuff rolling and momentarily out of circulation?),
"US tariffs on goods and services" (as if this is a bad thing for the U.S.? Read U.S. history),
"Forex reserves of foreign central banks fell from 64.5% to 62.8% in dollar terms" (as a result of foreign banks "paying for goods in dollars and shorting the dollar simultaneously" - I understand the cause but not the effect).

I understand:
"net outflows of capital out of the market" (cashing out of the stock market casino with a badly burned feeling),
"the long side" (as opposed to "stocks sold short" - not "the long term"),
"fiduciaries" vs. "equities" (T-bills vs. stocks),
"credit crisis" (the Saudis and the capitalists of Communist China don't trust us with what used to be our money),
"monetization increases" (the Bureau of Engraving prints incrementally devaluing paper which dilutes the M2 money supply).

"An issue the elitists did not think they would have to deal with is the question of whether Obama is a citizen or not."
Just who exactly are these elitists? Bilderberg, NWO, OWG, NAU, SPP, Davos, Luciferians, Rothschilds, Rockefellers, and the Federal Reserve - but what specific persons? Names, addresses, and businesses, please; put a face on "They". Don't just refer me to Alex Jones or Prison Planet.

"...in 2000 we had no idea that China would be the propellant to move gold higher."
Perhaps "we" (you and your peers, Mr. Chapman), not having seen the Sun for so long, were afflicted with Wall St. tunnel vision. Perhaps "we" (you) haven't been shopping at Wal-Mart since "Made in U.S.A." died with Sam Walton in 1992. Perhaps "we" (you) didn't study Sun Tzu's The Art of War or reckon with financial warfare.

On a related note, perhaps "we" (you) didn't take into account the Arab superstition about numbers when preparing the day's market bets early in the morning on Sept. 11, 2008.

"Instead of chasing an overpriced goose [the U.S. stock market] you should be participating in the bull markets in gold, silver and commodities." "...we definitely will have hyperinflation and a falling dollar." "Once the dollar falls to long-term support at 71.18 to 72 on the USDX, there will probably be a rally and a retest. Sometime in 2010, 71.18 will be broken to the downside and we will then find out where the real bottom on the dollar will be. It could be 40 to 55, we won’t know until we get there. That is when official devaluation and default will occur, not only in the US dollar but in many other currencies. That will cause financial chaos worldwide and you had better have gold and silver if you want to survive."

I understand that.