Posts filed under “Fixed Income/Interest Rates”
If We Don’t Break Up the Big Banks, They Will Manipulate More and More of the Economy … Making Us Poorer and Poorer
Interest rates are rigged:
- The big banks have conspired for years to rig interest rates … upon which $800 trillion in assets are pegged
- Local governments got ripped off bigtime by the Libor manipulation
- Libor is still being manipulated
Derivatives Are Manipulated
Currency Markets Are Rigged
Currency markets are massively rigged.
Commodities Are Manipulated
The big banks and government agencies have been conspiring to manipulate commodities prices for decades.
The big banks are taking over important aspects of the physical economy, including uranium mining, petroleum products, aluminum, ownership and operation of airports, toll roads, ports, and electricity.
And they are using these physical assets to massively manipulate commodities prices … scalping consumers of many billions of dollars each year.
Gold and Silver Are Manipulated
The Guardian and Telegraph report that gold and silver prices are “fixed” in the same way as interest rates and derivatives – in daily conference calls by the powers-that-be.
Oil Prices Are Manipulated
Oil prices are manipulated as well.
Everything Can Be Manipulated through High-Frequency Trading
Manipulating Numerous Markets In Myriad Ways
The big banks and other giants manipulate numerous markets in myriad ways, for example:
- Shaving money off of virtually every pension transaction they handled over the course of decades, stealing collectively billions of dollars from pensions worldwide. Details here, here, here, here, here, here, here, here, here, here, here and here
- Charging “storage fees” to store gold bullion … without even buying or storing any gold . And raiding allocated gold accounts
- Committing massive and pervasive fraud both when they initiated mortgage loans and when they foreclosed on them (and see this)
- Pledging the same mortgage multiple times to different buyers. See this, this, this, this and this. This would be like selling your car, and collecting money from 10 different buyers for the same car
- Cheating homeowners by gaming laws meant to protect people from unfair foreclosure
- Pushing investments which they knew were terrible, and then betting against the same investments to make money for themselves. See this, this, this, this and this
- Engaging in unlawful “frontrunning” to manipulate markets. See this, this, this, this, this and this
- Charging veterans unlawful mortgage fees
The Big Picture
The big picture is simple:
- The big banks manipulate every market they touch
- Too much interconnectedness leads to financial instability
- The government has given the banks huge subsidies … which they are using for speculation and other things which don’t help the economy. In other words, propping up the big banks by throwing money at them doesn’t help the economy
- Top economists, financial experts and bankers say that the big banks are too large … and their very size is threatening the economy. They say we need to break up the big banks to stabilize the economy
Get it? Break up the big banks, or they will continue to take over and manipulate more and more of the economy … increasing their profits while making everyone else poorer.
Key data points:
• Home prices show increases of 2.5% and 2.4% for the 10- and 20-City Composites in May versus April.
• Dallas and Denver reached record levels surpassing their pre-financial crisis peaks set in June 2007 and August 2006.
• This is the first time any city has made a new all-time high.
• All 20 cities increased from May 2012 to May 2013 and from April 2013 to May 2013.
• In May 2013, the 10- and 20-City Composites posted annual increases of 11.8% and 12.2%.
• The Southwest and the West saw the strongest year-over-year gains.
• The overall report points to some shifts among various markets: Washington DC is no longer the standout leader and the eastern Sunbelt cities, Miami and Tampa, are lagging behind their western counterparts.
Detroit, Munis, A Follow Up David R. Kotok Cumberland Advisors July 26, 2013 As a follow-up to the Detroit-Muni Bond series we have published, here are additional views: 1. John Ruiz of Morgan Stanley Matrix offers this: “Note to cross-over buyers: if you see Meredith Whitney on your TV screen, and she is…Read More
Click to enlarge Kotok via David Wilson: Municipal bonds are an “outrageous bargain” in the wake of Detroit’s bankruptcy filing, according to David R. Kotok, Cumberland Advisors Inc.’s chairman and chief investment officer. As the CHART OF THE DAY shows, the highest-rated notes and bonds of state and local governments yield more than Treasuries…Read More
More on Munis, Detroit, Bloomberg, Whitney & Wilson David R. Kotok Cumberland Advisors, July 24, 2013 In our recent commentary on municipal bonds and Detroit, we argued in favor of buying the highest-grade AAA tax-free municipal bond It currently yields more than the corresponding taxable US Treasury obligation. Meredith Whitney, Muni Cassandra emeritus…Read More
Cheap Munis, Not Detroit David R. Kotok Cumber July 22, 2013 We thank Michael Wilson of Morgan Stanley Wealth Management and FactSet Research Systems for a compilation of returns. Michael’s commentary in July talked about how “There was no place to hide in fixed income.” We agree, although we think hedging dampened volatility…Read More
Rising interest rates could mean the window to fix infrastructure on the cheap is closing Barry Ritholtz, Washington Post, July 12 Thanks to the Federal Reserve’s zero interest rates and quantitative easing policies, borrowing costs are near generational lows. The costs of funding the repair and renovation of America’s decaying infrastructure are as…Read More
> My Sunday Washington Post Business Section column is out. This morning, we revisit our October 2011 discussion about infrastructure repair. The present conversation is about the once in a lifetime opportunity to finance these works at historically low interest rates, which are now starting to rise. Here’s an excerpt from the column: “Thanks…Read More
Monetary Policy Tightening and Long-Term Interest Rates Pedro Amaral FRBC 07.09.13 The Federal Open Market Committee (FOMC) has maintained an accommodative monetary policy ever since the 2007 recession, and some financial market participants are concerned that long-term interest rates may increase more than should be expected when the Committee starts to tighten. But…Read More