muses of the moment

April 4, 2013

Latest Blog Post from Martin Armstrong dated April 3, 2013

Click here for the latest blog post from Martin Armstrong dated April 3, 2013 entitled All Government Acknowledge the Cyprus Model for Bank Bailouts Is It.

Groovygirl is posting this one, but there are other good posts at Martin’s website, because this is her focus for the next few months, and possibility beyond.

gg says: It is very clear now what will happen and a time frame. The next global debt collapse and banking system crisis will either happen or impact main street in 2015 (Martin’s date is October 1, 2015). It is coming. It will like 2008, but much worse. They will take your savings this time to try and save the system. And judging from the reaction in Cyprus, they will not announce it beforehand. You must prepare now, if you have not already, and have your financial plan in place before 2015. That is just about 18 months from now.

Update: and the phrase of the day is: Cyprus is a template. Jesse agrees. Click here.

March 7, 2013

One has to stare open-mouthed at the state of our union

Filed under: Bailout Nation, Bank bailout, FDIC, The Banking Crisis — totallygroovygirlfriday @ 1:31 am

The title of this post is a quote from a zero hedge post. Click here.

Since banks are officially, via Eric Holder, to big to prosecute and they can borrow money at zero interest from the Fed, guess what: they will continue to do what they have been doing and we will face the same thing as 2008 again.  As Jim Sinclair says, QE will never end.

If we let the banks fail one time, they won’t be too big to fail or jail for a long while. Just a thought…..

This should end well.

February 10, 2012

Warren vs. Lira

Filed under: Bailout Nation, Bank bailout, FDIC, MF Global bankruptcy, The Banking Crisis, The Federal Reserve — totallygroovygirlfriday @ 2:20 am

Click here for a 9-min video from Warren Pollock going over Lira’s conversation on Max Keiser. Great video.

Groovygirl has to lean more towards Warren than Lira regarding most points. Lira’s points may have value short-term (next 18-24 months), but long-term, the possibilities of bank holidays are high. The possibility of selective bank holidays for certain banks or certain country’s banks, very high.

Bank holidays are usually brought on by investors withdrawing money, causing a run on the bank, fund, brokerage, etc. If more than one entity has a run, the Fed can not print enough money to cover it. It is a confidence game, not a matter of printing. That is the point that Lira misses.

So far, the government has done nothing to restore confidence from Lehman to MF Global. All that is needed is a certain percentage of investors pulling out. And since most of the shadow banking system is unregulated, it will be very hard for the Fed to figure out where that will happen next.

That’s why you need to protect yourself from bank holidays by having your cash split among at least 2-3 banks, preferably one outside the US. Also, 2-3 brokerage accounts, if you trade.

January 30, 2012

Bill Moyers

Click here for Bill Moyers’ third of five series on Big Banks and the Financial Collapse entitled How Big Banks Are Rewriting The Rules Of Our Economy. Another great investigative report from Mr. Moyers and his team. The interview with John Reed, former Citigroup Chairman of the Board, is worth watching alone. If you remember, the Citigroup merger was the reason for the dismissing of Glass-Steagall.

The true irony here is the Mr. Reed’s father lost his entire savings in the bank failures of the 30’s and he said that his father would die again if he knew he was working for a bank. No, I think his father is turning over in his grave because the deal his son was involved in negating all safeguards to protect saving accounts, and now, 401ks and IRAs as well. Oh, the irony! Mr. Reed says “We got carried away.” No one will take any responsibility for anything. It’s the American way.

The best part of the show was at the end, when Bill responds to an email from a viewer regarding last week’s show. Groovygirl has a renewed hope in America news reporting. Mr. Moyers responded that his job is to report what has/is happened, not modify his story to get a party elected or not elected. It seems Mr. Moyers has grasped the reality of the situation, we are way beyond political parties saving the day.

Groovygirl loves Bill Moyers!!

November 2, 2011

A warning

Filed under: Bailout Nation, Bank bailout, Economic Crisis, FDIC, The Banking Crisis — totallygroovygirlfriday @ 10:19 pm

Groovygirl is joining Mr. Martenson and is issuing a warning. She is very concerned about the recent economic events. Here are some links and comments. These are bits and pieces because we can not see the whole picture yet. So, we must take action to protect our assets as best as we can. Use your own judgement.

First, Chris Martenson has issued a warning. Click here.

That said, tomorrow I am going to get more cash from the bank to hold in reserve until things clear up (or break down). The idea here is that cash will be a very useful commodity to hold and then deploy should the banking system suffer some sort of a freeze-up for any length of time.

MF Global from TF Metals Report. Click here. I highly recommend you read this entire post, especially if you are trading or your 401k investments are trading (that’s almost everyone). It is clear that MF Global was using clearing funds to bet on Greece. This is very serious. Groovygirl doesn’t know if this is all that is in the post is true, but this is the opinion of someone in the industry. At the very least, the potential for another brokerage house to blow up or lose funds is very high. In addition, if MF Global was moving money before and after audits, we can guess other brokerage houses may play the same game. Even if the regulators are actually paying attention, it is very clear from the past ten years, there is plenty of room for monkey business.

Latest lost customer funds total from MF Global is $1.5 billion. Click here. Someone is taking a haircut. Hope it is not anyone gg knows.

As we have learned from Reggie Middleton at boombustblog.com, exposure to Greece leads to Italy (MF Global’s bad bet), then to French banks and then to Germany and the rest of the world. This is moving right along like clock work. There is no guarantee that the powers that be can stop any crisis. They can only extend and pretend. That may be frustrating, but see this as an opportunity to get your financials in a safer investment.

As Chris Martenson said, this current crisis may blow over (until the next one), or it could be a major disruption for everyone. Take precautions and be watchful the next few months.

October 31, 2011

William Black at Occupy

Click here for a video interview with Bill Black, who worked the last crisis in 1987-1992, at the Occupy Wall Street Protest. Good interview, summary of the size of crisis we are facing.

October 24, 2011

KWN

Another great interview with Jim Rickards on King World News. Click here.

Side musing: groovygirl was listening to financial TV and someone said something very interesting. GG hasn’t verified this info. If US has $3 trillion in shadow banking (that taxpayers bailed out in 2008-2009), Europe collectively has $30 trillion in shadow banking or liquidity needed for credit creation. Just based on this information, gg says this will NOT end well.

October 23, 2011

It’s Very Tense Behind Closed Doors on Both Sides of the Pond

European news seems to be becoming more and more pessimistic. Click here.

groovygirl heard some rumors. There are no links to verify this info and gg is making some conclusions on her own based in this info.

First, on Friday, Ben, some members of Congress, and others had a meeting about how the European crisis will affect the US and its banking system. The long faces coming out of the meeting (which was not covered by the press) were very long indeed. GG suspects that this meeting was to explain why BofA and others had to move their derivatives to FDIC insurance portion of the balance sheet. And also explain the very dire situation in the global banking system. We will have another bailout of the banks as we are facing another complete credit freeze and complete breakdown of the global banking system. The political will for another bailout may be a problem and the more bailouts we do, the less and less they work, because they just create more debt, which is the problem. This next round should be interesting.

Second, it is clear, although mixed messages are coming out of Europe on the weekend of the big meeting, that Greek bond holders will have to take a 60% haircut on their investment. If they mentioned 60%, it’s probably a total loss. It seems this will happen soon, so we may expect to see the domino effect into 2012. Remember, it will take 3-6 months to see the global carnage from the Greek default. And yes, even 60% is a default.

Get ready.

October 20, 2011

The Seven-Minute Evening News

Click here for the best summary from RT of the most important news of the last few days. Besides Greece being on fire in every sense of the word, VERY IMPORTANT INFORMATION that you should know about all US bank deposits. Reggie is the man!

All Too Big Too Fail United States Banks (not just BofA) have moved their derivatives to the same balance sheet as its customers’ cash deposits and savings with the Federal Reserve’s approval. The FDIC (taxpayer-funded, by the way) doesn’t have enough money to cover US bank saving deposits, let alone TBTF derivatives.

Step back, lighter fluid has just been poured on the fire.

If you have money in these banks, get it out now. Move it to another country (but not Europe or Japan), move it into precious metals, buy supplies/food you will use, have some cash at home. Only have enough cash in a bank(s) to pay bills. Cash you can get along without, if necessary.

Big banks loan money to regional banks and regional banks loan money to local banks. If big banks blow up, they start calling in loans from the mid-sized banks, and so on. (That’s why they got bailed out last time.) I know everyone loves credit unions, but credit unions got bailed out in 2008 just like the other banks. The entire banking system is interconnected and under extreme stress.

Side musing: in case you were not aware, TSA has escaped the confines of the airports and are now frisking trucks. Click here.

In true network news fashion, groovygirl will end the evening news with cute puppies, so that you may forget that the world is ending as you know it and will sleep tonight.

“I’m Veronica Corningstone, and thanks for stopping by, San Diego.”

October 19, 2011

B of A

Filed under: Bailout Nation, Bank bailout, FDIC, Safe banks — totallygroovygirlfriday @ 2:01 am

Bank of America did a little creative moving of money that you should be aware of. They moved their derivative profile to the retail side of the company (which is insured by the FDIC). That means derivative contracts are now mixed up on the same balance sheet as your deposits (if you still have your money in B of A).

Now, this has been done before (with government approval) during the Banking Crisis of 2008-2009. But the government has revoked that allowance for everyone (except BofA, apparently) since that time.

Click here for the detail.

The Bloomberg article doesn’t state this, but groovygirl believes this is just further evidence that Bank of America is bankrupt. Since that is the case, the FDIC is not happy about this move, as they will eventually be paying the bill to cover customer deposits when these derivatives blow up.

These are Merrill’s derivatives by the way. Yes, Merrill, remember them? They are still with us. The banking problem HAS NOT been fixed.

Older Posts »

Theme: Shocking Blue Green. Get a free blog at WordPress.com

Follow

Get every new post delivered to your Inbox.

Join 81 other followers