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by Chris Martenson

Having watched the currency markets for long enough to know, I am certain that they are among the most regularly interfered-with of them all.  

In this article it is openly speculated that perhaps a joint support of the dollar is in the works:

[quote]Sept. 29 (Bloomberg) — A growing number of currency traders and strategists are starting to speculate that finance ministers from the world’s biggest economies will join to support the dollar.

"We’re getting closer to the right conditions for authorities to step in and prop up the dollar,” said Maxime Tessier, who manages $151 billion as head of foreign exchange in Montreal at Caisse de Depot et Placement. "The nightmare scenario will be a wholesale loss of confidence in the dollar.”

"The central banks of the world have embarked on all sorts of extraordinary interventions,” said Stephen Jen, the global head of currency research at Morgan Stanley in London. "Currency joint intervention would be the least surprising. And it would probably be the cheapest.” [/quote]

Link (Bloomberg)

I find it remarkable that they did not find a single quote from somebody who thought that the 9% gain in the dollar against the Euro was already a clear sign of manipulation.

To me it is utterly improbable that the dollar rose, even as the US lost all but two of its investment banks, bailed out its largest insurance company, and suffered the largest bank failure in history. To explain this, I have to assume that whomever was buying the dollar and selling the Yen and the Euro was doing so for reasons that were not economic in nature.

Dollar Intervention Risk ‘Meaningful’
by Chris Martenson

Having watched the currency markets for long enough to know, I am certain that they are among the most regularly interfered-with of them all.  

In this article it is openly speculated that perhaps a joint support of the dollar is in the works:

[quote]Sept. 29 (Bloomberg) — A growing number of currency traders and strategists are starting to speculate that finance ministers from the world’s biggest economies will join to support the dollar.

"We’re getting closer to the right conditions for authorities to step in and prop up the dollar,” said Maxime Tessier, who manages $151 billion as head of foreign exchange in Montreal at Caisse de Depot et Placement. "The nightmare scenario will be a wholesale loss of confidence in the dollar.”

"The central banks of the world have embarked on all sorts of extraordinary interventions,” said Stephen Jen, the global head of currency research at Morgan Stanley in London. "Currency joint intervention would be the least surprising. And it would probably be the cheapest.” [/quote]

Link (Bloomberg)

I find it remarkable that they did not find a single quote from somebody who thought that the 9% gain in the dollar against the Euro was already a clear sign of manipulation.

To me it is utterly improbable that the dollar rose, even as the US lost all but two of its investment banks, bailed out its largest insurance company, and suffered the largest bank failure in history. To explain this, I have to assume that whomever was buying the dollar and selling the Yen and the Euro was doing so for reasons that were not economic in nature.

by Chris Martenson

This news is from yesterday, but it bears mentioning.

[quote]From 2002 to 2007, U.S. lenders made a total of $2.5 trillion in subprime mortgages, according to the newsletter Inside Mortgage Finance. "Given the magnitude of the bad loans still on bank balance sheets, it would be miraculous for the FDIC to squeak by with losses of less than $200 billion,” Whalen says. [/quote]

Link

The pace at which these monster cost estimates are piling up tells us that there’s a very high probability that the Federal Reserve is going to be directly monetizing debt, if they haven’t started already.

This little chart from the Fed raises the prospect that direct monetization has already begun.

FDIC May Need $150 Billion Bailout
by Chris Martenson

This news is from yesterday, but it bears mentioning.

[quote]From 2002 to 2007, U.S. lenders made a total of $2.5 trillion in subprime mortgages, according to the newsletter Inside Mortgage Finance. "Given the magnitude of the bad loans still on bank balance sheets, it would be miraculous for the FDIC to squeak by with losses of less than $200 billion,” Whalen says. [/quote]

Link

The pace at which these monster cost estimates are piling up tells us that there’s a very high probability that the Federal Reserve is going to be directly monetizing debt, if they haven’t started already.

This little chart from the Fed raises the prospect that direct monetization has already begun.

by Chris Martenson

As recently predicted here, Washington Mutual became the next big bank failure.  However the details are slightly beyond my comprehension and I will have to wait for more details to understand exactly what happened here.

First of all, I have no idea what "some" or "virtually all" assets means.

[quote]Washington Mutual, with $307 billion in assets, is by far the biggest bank failure in history.

Regulators simultaneously brokered an emergency sale of virtually all of Washington Mutual, the nation’s largest savings and loan, to JPMorgan Chase for $1.9 billion, averting another potentially huge taxpayer bill for the rescue of a failing institution.

By taking on all of WaMu’s troubled mortgages and credit card loans, JPMorgan Chase will absorb at least $31 billion in losses that would normally have fallen to the F.D.I.C. [/quote]

Link to NYT article

And it is completely left unsaid why JPM would agree to eat $31 billion in losses the "normally would have fallen to the FDIC"

But I can explain that.  That $31 billion will be foisted upon the unlimited billion bailout fund as soon as possible.  In short, the US taxpayer is being asked to provide a massive grant to JPM so it can expand its business reach. 

And, of course, the greed of Wall Street is so profound that they can’t even resist the urge to rub this fact into the public nose.

[quote]“We are building a company,” Mr. Dimon said in a brief interview. “We are kind of lucky to have this opportunity to do this. We always had our eye on it.”[/quote]

As if you needed any further confirmation about just how out of control the looting and theft of the public funds really are, the NYT provides it in the very next paragraph.

[quote]Mr. Fishman [MW’s new CEO], who has been on the job for less than three weeks, is eligible for $11.6 million in cash severance and will get to keep his $7.5 million signing bonus.[/quote]

$18.1 million dollars for less than three weeks.  Only in America friends, only in America.  We might like to tempt ourselves with the thought that this money came from some magic pool, but it came directly from investors, depositors and/or taxpayers.

Government Seizes WaMu and Sells “Some” Assets
by Chris Martenson

As recently predicted here, Washington Mutual became the next big bank failure.  However the details are slightly beyond my comprehension and I will have to wait for more details to understand exactly what happened here.

First of all, I have no idea what "some" or "virtually all" assets means.

[quote]Washington Mutual, with $307 billion in assets, is by far the biggest bank failure in history.

Regulators simultaneously brokered an emergency sale of virtually all of Washington Mutual, the nation’s largest savings and loan, to JPMorgan Chase for $1.9 billion, averting another potentially huge taxpayer bill for the rescue of a failing institution.

By taking on all of WaMu’s troubled mortgages and credit card loans, JPMorgan Chase will absorb at least $31 billion in losses that would normally have fallen to the F.D.I.C. [/quote]

Link to NYT article

And it is completely left unsaid why JPM would agree to eat $31 billion in losses the "normally would have fallen to the FDIC"

But I can explain that.  That $31 billion will be foisted upon the unlimited billion bailout fund as soon as possible.  In short, the US taxpayer is being asked to provide a massive grant to JPM so it can expand its business reach. 

And, of course, the greed of Wall Street is so profound that they can’t even resist the urge to rub this fact into the public nose.

[quote]“We are building a company,” Mr. Dimon said in a brief interview. “We are kind of lucky to have this opportunity to do this. We always had our eye on it.”[/quote]

As if you needed any further confirmation about just how out of control the looting and theft of the public funds really are, the NYT provides it in the very next paragraph.

[quote]Mr. Fishman [MW’s new CEO], who has been on the job for less than three weeks, is eligible for $11.6 million in cash severance and will get to keep his $7.5 million signing bonus.[/quote]

$18.1 million dollars for less than three weeks.  Only in America friends, only in America.  We might like to tempt ourselves with the thought that this money came from some magic pool, but it came directly from investors, depositors and/or taxpayers.

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