Monday, April 27, 2009

Is "Swine flu" a natural or lab created viral mutation?

Swine flu fever has struck all forms of media seemingly overnight at a rate faster than the far deadlier bird flu.

Could it be due to the outbreak epicenter's proximity to the United States or is there something more sinister at play?

Are we looking at a natural mutation(H1N1) made up of a three headed combination of swine, bird(H5N1) and human based flu variants?

Is this scientifically possible without expert manipulation by biologists?

Where is all the expert scientific testimony to the possibility of the mutation of a virus that has 3 different strains from humans, birds and pigs?

So far this is an overwhelming majority of sensationalism and fear mongering by the media as opposed to interviews with experts who can provide more details as to the plausibility of such a virus without artificial lab based manipulation of three different virus strains.

What could raise suspicion to the veracity of the "natural" origin of Swine flu is the recollection of the original 1976 outbreak having "coincidentally" taken place a a US military base.

" The episode began in February 1976, when an Army recruit at Ft. Dix, N.J., fell ill and died from a swine flu virus thought to be similar to the 1918 strain. Several other soldiers at the base also became ill. Shortly thereafter, Wenzel and his colleagues reported two cases of the flu strain in Virginia.

"That raised the concern that the original cluster at Ft. Dix had spread beyond New Jersey," said Wenzel, former president of the International Society for Infectious Diseases. "


As the morning female CNN anchor smirks in announcing that this is the first Health crisis for newly elected President Obama, one cannot help but wonder why hasn't a major media outlet like CNN even mentioned the original 1976 epicenter of Swine flu?

They've had more than 48 hrs to follow up on this issue and so far Major television media remains silent about this. Is this due to a lack of available reports on the weekend?

( Updated, at 8:33 EST CNN finally mentions Fort Dix outbreak of 1976 in a 5 second sound byte. Don't you think that a more fleshed out news piece on the 1976 Fort Dix outbreak would be of interest?)

This is suspicious to say the least.

More angles on this developing story as time permits.

Tuesday, April 21, 2009

Goldman Sachs SPG Manipulation: The Proof is in the Price

Quick update:

There's no point in going over why it is the case but all Goldman Sachs near options expiration pumps seem to free fall the week after, further adding to the artificial nature of the stock moves

SPG is currently some 8$ or 17% down from Friday's highs and below the Goldman Sachs conviction buy list buy in and price targets.

Just another in a long list of stocks that Goldman Sachs needed to unload on unsuspecting investors and traders.

Having most likely gone short the same stocks they were pumping the last few weeks, is it any wonder that the market news and outlook went gloomy all of the sudden yesterday?

If Goldman Sachs and cronies covered enough shorts yesterday and went long, any guess as to what the end of day results would be at the casino?

We are already opening at the lows and going up.

Friday, April 17, 2009

Goldman Sachs and Thursday's trading activity in SPG

It looks like Goldman Sachs is back up to their old tricks again.

Anybody that saw today's noon onward monster ramp up in the price of Simon Properties Group(SPG) has to be wondering what was going on especially after the previous day's continuous upward move.

Shorts trying to cover in the face over Great news?

Let's have a closer look:

After the 2nd largest Mall owner General Growth Properties Inc. filed the biggest REIT bankruptcy ever, their competitor SPG opened near the lows of the day and did not do much for a couple of hours until seemingly out of nowhere or based on a programed trade, it staged a unrelenting upward move that left short term technical reading such as the RSI, slow and fast stochastic all at the highest overbought readings possible of 100 for over 3 hrs!

The spike looked very suspicious since it did not abate until a few minutes before the end of the day almost reaching the 50 options strike range after starting the day closer to the 40.

Could this have been a case of bullishness based on the idea that SPG can now pick up GGP property on the cheap?

If this thesis was the case for the massive upward mid day move in SPG, it turned out to be a false one after Hedge Fund manager Bill Ackman emphatically stated the following:

"Ackman Sees ‘Zero’ Chance of General Growth Fire Sale"

“The probability of Simon (Property Group Inc.) or the other mall REITs buying any of General Growth’s properties on the cheap is zero,” Ackman said in a telephone interview. General Growth is “not going to be forced to do anything because they’re in bankruptcy.”

Link -

Surely Goldman Sachs and their gang wasn't trying to stick it to this Blogger for mentioning the history of their recommendations and conviction buy list yesterday where SPG happens to be the latest addition.

Could it be Goldman's way of sticking it to anyone who's had posts linked to the blog site they're suing ?

Lowly blogger conspiracy theories aside(cough, cough)

what could it have been? has an idea:

"Yesterday Goldman Sachs added Simon to their Conviction Buy List with a target of $46. This rec came exactly 3 weeks after Goldman, UBS, and Deutsche Bank completed a big offering equity/debt offering for Simon. GS held $177 million worth of SPG as of 12/31/08. RREFF America LLC , a subsidiary of Deutsche Bank, held $330 million.

The basic gameplan for a investment bank bank like Goldman might look something like this:

1. Borrow dirt-cheap money from the Fed
2. Loan that money to risky commercial real-estate companies by underwriting juicy offerings (10.35% for the Simon debt, equity was ~8% discount to current price).
3. Collect fees from client(s), plus interest from the spread on the debt. If there’s not enough demand for the stock, keep it yourself, then proceed to steps 4 and 5.
4. Research dept adds stock to Conviction Buy List
5. (This step seems the least likely, but it’s possible.) If GS traders and Quant-funds were to brutally squeeze the stock higher, that would be icing on the cake for the whole deal, hypothetically. What’s to stand in the way? Dennis Gartman and a few dozen retail investors?

Sounds very profitable, and pretty foolproof to me. Unless, of course, the SEC gets involved like they did in 2003. That incident resulted in $110 million in fines for GS." Here are some excerpts:

The Complaint also alleges that Goldman Sachs published exaggerated or unwarranted research and failed to maintain appropriate supervision over its research and investment banking operations.

Goldman Sachs “aligned” its research, equities, and investment banking divisions to work collaboratively in order to fully leverage its limited research resources.

Goldman Sachs failed to establish and maintain adequate policies, systems, and procedures reasonably designed to ensure the objectivity of its published research."

Link to the Full details at -


Goldman Sachs?


Surely you must been joking!

And the sound of a RICO beat goes on.....

Thursday, April 16, 2009

Why are Goldman Sachs recommendations wrong so often?

Last year,

In the midst of possibly the biggest commodities bubble in history, Goldman Sachs forecast $200 crude in the not too distant future.{4B702F7F-41F8-45F0-A133-630F12F2C764}

Then before the end of the year, they went the other way stating it's headed to $25

Well, oil did not end up hitting either level but what it did do was crash not long after Goldman's $200 call and bottomed not long after Goldman's $25 call.

So if you had taken Goldman's advice, you would have been headed towards the poor house if not outright insolvency.

Just ask the now Bankrupt Semgroup who might have been victim to a short squeeze against their short oil position by Goldman Sachs' traders.

"Goldman’s commodities oil-trading desk has been linked to the failure of Semgroup Holdings, an oil-trading company in Tulsa, Okla., that declared bankruptcy in July 2008. Semgroup investors say Goldman had access to the company’s trading books and could have used that information against the company, according to Forbes."

source -{504CB844-C558-4E40-B928-80C16DECBC05}&print=true&dist=printMidSection"

A Goldman subsidiary who held physical oil for Semgroup refused to release the oil in order for Semgroup to use it to cover a margin call prior to their collapse.

When Katrina hit in 2005 and oil spike to around $80, Goldman forecast $150 oil. What did oil do? it promptly almost sold in half.

There is a mounting pile of evidence that Goldman takes the other side of many of their recommendations.

That politically correct wording for this dishonest is "counter party" to hedge funds, other banks, mutual funds and small investors alike.

After Bear Stearns collapsed last year, it was revealed last year that Goldman side stepped the collapse by being short many of the destined to be toxic securities that they created and sold to every institution that wanted to buy them.

This means in effect that they created a product they knew was going to be worthless and sold it twice.

Here are some charred remains of some of Goldman's top recommendation, what they term as their conviction buy list:

Apple at $181 on its way down to $80.
Electronic Arts at $49 on its way down to $14
Royal Caribbean cruises at $35 on its way down to $6
Amazon at $82 on its way down to $35.
State Street at $68 on its way down to $14.
United States Steel at $191 on its way down to $17

Most of these stocks have rebounded from their lows and Amazon is almost back at its Goldman recommendation but that did not help the people that were pushed out of the stock at much lower prices due to fear of losing everything or margin calls.

Yesterday, Goldman Sachs added a Simon Properties group(SPG) to their conviction buy list, prompting a short squeeze in the stock that accelerated and made shorts cover by the millions between 3 and 4 pm.

Today we find out that SPG's industry peer General Growth Properties has filed for chapter 11 bankruptcy protection, which may cause selling pressure on the sector today.

"General Growth Properties Inc., the nation's second-largest mall operator, filed for Chapter 11 bankruptcy protection early Thursday after it failed to persuade a majority of its debt holders to give it more time to refinance billions of dollars in debt racked up during the housing boom."

It does not take much to connect the dots and surmise that Goldman Sachs knew that General Growth was about to file for bankruptcy since they are intimately connected to the inner circle of General Growth's debt holders if not one of them.

How's that for arrogance on Goldman's part?

Caveat emptor is the kindest thing to say of Goldman's recommendations.

Running the other way might be more prudent and for the bold traders out there, selling short what Goldman is selling usually leads to more profits than losing 50-80% buying their recommendations.

I had the sneaky suspicion that Goldman was up to something and looking to dump and the news today proved my suspicion to be true.

It is surprising that the media and the rest of the players on Wall Street continue to turn a blind eye to the constant dishonest manipulation committed by the supposed best traders on Wall Street.

Wednesday, April 15, 2009

Hebrew slavery reminder day

Fellow inmates in the current monetary system based slave prison planet we call Earth,

Today, we celebrate our dependence day.

We are dependent on a system of enslavement known as the Private Banking monetary system - a system that is busy perpetuation the longest running and greatest Pyramid/Ponzi scheme ever known to humanity known as the stock market where a few print money for a living and trick the rest of humanity to work perpetuating a system that is the primary form of modern day enslavement.

Today the biggest problem in the world is a financial crisis that has left major banks insolvent since they were busy buying up highly illiquid securities made up from repackaged home and corporate loans made out to highly leveraged consumers and corporations who were busy bidding up prices that ended up ensnaring them in traps that are akin to tightening the noose and hanging themselves by their own thoughtless volition.

And even if you and I did not partake in this game of leverage, we are obligated to bail out the ones that did with our reward being that we can possibly return to the previous status quo and continue to prop up this system with the hope that we are smart enough that we can game it and gain wealth at the expense of the majority of the population of this planet who continuously to fall further and farther behind.

This is the message that we are being sold and even if we don't want to buy it, our bought and paid for politicians are forcing us to implement it since they would like nothing better than the status quo to continue so they can stay in the limelight and continue to pretend that they yield power.

All the while, the ones that have real power never really come forth into the spotlight.

The typical person is susceptible to being tricked into thinking that there are opposing forces in government and it is a good idea to choose a side to be on.

This message is constantly being perpetuated by the media that is owned by subsidiaries of subsidiaries that trace back to a small ownership group of people that create money out of thin air.

My thinking has boiled down to the whole thing being a perfectly circular and vicious cycle and here it goes.

Republicans are supposedly for Business, big and small.
Democrats are supposedly for Government, big and small.

In today's world you cannot start a business and grow it without angel investors who've made their money via gaming the system in addition to being entrepreneurial.

If you are lucky the above can fund you. For the rest of those aspiring to start a business, big and small, they need to go to the bankers.

The Bankers lend money borrowed at a discount from bigger bankers who print this money out of thin air and put it in play.

In order to thrive, these businesses need taxes to be low and they need plenty of tax breaks and they need the government to be involved in stimulating the economy if the economy is not strong enough to stand on its own in order for the owners and executives of these businesses to increase their net worth by converting options created out of thin air into cold hard cash via the Casino known as Wall Street.

When these businesses run into trouble by being slaves to their lenders at usurious rates they cannot sustain, they look to the court system for a forgiving of this debt but if they are too big to fail they look to the Government for bailout money that creates more debt for the people - debt that is not created by a not for profit government but by a for profit based private banking system masquerading as a public entity.

As the pendulum of debt swings from being pumped into the system to its required extraction, the rulers of our world remove the business advocating politicians and replace them with Government advocating politicians who are forced to increase our taxes so we can pay back the same money that went into the system by the money printers.

And that is why the political system is a vicious circle that has made me into what prescient future trends forecaster Gerald Celente terms as a "political atheist".

It is all just one big monopoly money zero sum game ponzi scheme. The whole thing. It is a manufactured problem that ends up causing many people to starve.

And as absurd as it sounds, the current global financial crisis may not end until the real problems such as crop failure, droughts, famine, water shortage, climate change, earthquakes, and the earth effect of solar flare activity end up becoming so great that they overshadow the made up financial crisis of created out of thin wealth transfer so the people can lift the wool over their eyes with the hope of getting out of this multiple thousand year old cycle of Slave/Master Debtor/Indebted we have been stuck in.

Being a modest mouse who is trying to break out of the enslavement wheel before it breaks him, I leave you with this to ponder before I attend to the opening of the daily casino:

On this most reviled/revered of days(depending on which side of the Federal Reserve Hebrew slave equivalent wage theft racket you're on) one can not help but ask themselves:

Is this the best that Humanity can do?

Must we wait for a disaster before we can change our archaic ways?

Will it be too late when the real problems that cannot be bailed out by printing money take center stage?

P.S: Prior to their revolt, Hebrew slaves were paying 50% of their earnings to the Pharaoh. When he forced them to pay for the material they needed to build his projects, they could no longer make a profit after cost and revolted. And the rest is History as they say.

Tuesday, April 14, 2009

No mentions of the missing month on Goldman Sachs Morning Con Call


it looks like there is no backbone amongst the Wall Street Analysts( including Meridith Whitney surprisingly) as no one has mentioned the accounting trick of skipping over the Billion dollar lost month of Dec 2008.

Retail sales for March down three times as expected(-1.1%)

I wonder how the talking heads will spin this.

An interesting question to have asked Goldman Sachs CFO is how much did they profit from the 25% market gain in March, a month they would not have benefited from had they not been allowed to discard Dec 2008 financial data.

My question is what is the legality of skipping the reporting month and how often does it occur?

News Flash: Leave it to CNBC Commentator Rick "Chicago Tea Party" Santelli to mention the 4 month quarter on the air. Guest CNBC analyst quickly tries to deflect the issue.

How long until this becomes the indicting story that it should be?

Monday, April 13, 2009

Wall Street Emperor reports, sans appendage

In continuation of Wall Street's quarterly fantasy role playing game known as "gumptions and braggins", the Q1 Financial reporting charade I mean parade continues unabated with Wall Street Prince of Darkness firm Goldman Sachs reporting what looked like a blowout quarter until you read past the headlines to find that Goldman would have missed Analyst Estimates( oh the Horror!) if they stuck to their normal quarterly reporting cycle of Dec-Feb.

Is it any wonder that Goldman Lawyers are busy suing the new blogging site dedicated to uncovering their economically toxic machinations?

It's unclear whether or not they are suing due to the said site's reference to Goldman or to the number of the Beast or do they hold the rights to both?

Not only did TARP bail out Goldman Sachs to the tune of around 25 Billion, but it also allowed them to skip their $2.15 per share/ 1 Billion loss incurred during December.( Isn't 1 Billion too round a number? hmmm...)

How are they allowed to get away with this you ask?

In our increasingly fictitious/fascist collusive Government/Media/Corporate environment, apparently being allowed to convert into a Bank holding company can allow you to skip a bad month if you choose to and you get a free pass from everybody including the media.

Why should the media shine a light to expose the truth yadda yadda yadda..... just give me my money and you can put my name next to the byline.

Out of more than 10 reports from mainstream financial media sources,

I've only noticed one glance over the "orphan" month of December 2008:

"Shifting the start of its fiscal year certainly helped the bank's overall results, said Denise Valentine, senior analyst at Aite Group, a Boston-based research firm.

"It's a little bit of fancy footwork, but for the market as a whole it's good news and it was needed," she said. "When your star does well or does what is expected, you breathe a little easier."


"Fancy footwork" You say? or is your job on the line if you say what you really mean about Goldman Sachs' accounting trickery?

Not only is Goldman Sachs seemingly allowed to report fictitious "mark to market" results that can only be generously referred to as "mark to fantasy" based on relaxed financial reporting regulations, now they can also skip reporting whole months altogether.

What's next in this rigged game?

Queue generic CFO voice: "Ladies and Gentlemen, we are proud to announce record profits this quarter and every quarter into the foreseeable future now that we are allowed to spin off our losing months into separate entities according to TARP...Sorry, I meant PRAT(Profit Realization Accretion Transfer).

Voila, I've made our massive losses vanish into the SEC ether. Now hurry up and dilute the bagholders which allows us to pay the TARP back so I can get my damned bonus thanks to the PRAT act."

The quarterly reporting Emperor, apparently having no shame in addition to his lack of wardrobe, has decided to leave one of his sight for sore eyes limbs in the castle before venturing out into the open.

update: There is some reporting of the accounting loophole that caused Goldman to "smash" analysts estimates.

by Dan Wilchins


But Goldman's report was not all positive. The bank said its net loss for common shareholders was $1.03 billion in December, prompting some to question whether the change in financial years had allowed Goldman to dump much of its bad news into that one-off period and start afresh in the first quarter.

"December was a rare opportunity for both Goldman Sachs and Morgan Stanley," said Brad Hintz, an analyst at Sanford Bernstein. "A single month, without any comparisons that can be made with any other months, so none of us will ever know what goes into the month of December. It's one of those rare opportunities that CFOs dream about." Hintz is a former Lehman Brothers chief financial officer.

The bank said in January that it recorded a roughly $850 million loss from loans extended to units of chemicals company LyondellBasell in December, though the units filed for bankruptcy in January.

Between the December losses and the subsequent profit, Goldman's tangible book value per common share was essentially unchanged from the end of November, at $88.02, the bank said. Tangible common equity is a measure of the bank's net worth, ignoring intangible assets such as goodwill.

A measure of the bank's trading risk, average daily value-at-risk, surged to $240 million in the first quarter of 2009, compared with $157 million for the three months ended February 28, 2008, implying that the bank took more trading risk."

It is good to know that there are still some reporters like Dan Wilchins with enough backbone who are digging deeper but unfortunately for every one sentient report, there are 10 mindless company PR rehashes that drown them out.

The question to ask on the conference call in a couple of hours is how much they made in profit in their march 2009 quarter since it is taking place of their orphaned 1 Billion loss Dec 2008.

A safe estimate based on the frozen credit markets might imply that their Dec 2008 loss would have wiped out their profits from Jan and Feb of 2009 leaving them missing Analyst estimates by a country mile instead of crushing them.

But then again, we are not in the midst of a financial based economic collapse in spite of the accounting gimmicks of Wall Street firms but due primarily to the lax accounting standards that allow such chicanery to exist.

Another piece of irony is that Goldman made most of their profits using the same tactics of excessive leverage that have led to the horrendous tax payer money bailout of these bankers and it does not seem these bankers have learned any lessons about risk and leverage.

How long can they continue the same old same old while fleecing the public?

We shall see.

Friday, April 10, 2009

Why Wells Fargo Pre announced( or how I decided to stop worrying and love Wells Fargo's immitation of Lehman Brothers)

In light of all that is happening with the ongoing slow motion economic train wreck that our world is experiencing today, it is time to retro-fit this blog to move away from what amounts to metaphysical musings to some, self righteous pulpit bully talk to others and gibberish to the rest and get down to the nitty gritty that many people are waking up to:

The complete shamipulation that Wall Street is and always has been and why it is now more dangerous than ever since we, the tax paying public, are bailing out these swine striped suites while they continue to plot their plundering of our pockets out of their corner suites.

Here is my reasoning as to why Wells Fargo "pre-announced" record earnings:

Wells Fargo was one of the biggest Rohm & Haas shareholders before R&H was bought out for a 50% premium allowing WFC to book a 1.5 Billion profit on their books for Q1 when the all cash buyout of R&H closed.

(credit goes to WFC Yahoo financial message board poster "impartialanalyst" for being early to alert people to this sham rather than having to wait until a hedge fund manager loaded up short to the gills and announced this little unmentioned fact. He also profited from it by being long solely for this reason which paid off handsomely for him and others who paid attention, something that is sorely lacking in today's attention span deficit disorder that is our world.

Pre-announcing a record "profit" allows them the luxury not to show where the profit came from for a couple of weeks: Enough time for their trading arm to have bought enough of their own stock and calls and written puts for them to make a quick buck along with the rest of their fellow Wall Street cronies and dump them on an uninformed public greedy for a recovery.(Similar to front running trading of Fed meeting minutes for 3 weeks by Fed member banks before releasing them for public consumption)

This is the same thing that Lehman Brothers did in March of 2008 in pre-announcing their earnings except very few remember the past and even fewer report the similarities.

Last year, gloom and doom was expected for Lehman right after Bear Stearns collapsed so what Lehman did was pre announce earnings that crushed all analyst estimates and caused their stock to go up from $31 to $46 in one day after it had fallen as low as $22 the day before.

That day is firmly entrenched in my mind( March 18th 2008) since it was the day I was punished for correctly betting against Lehman's insolvency but being too early while waiting for Lehman's lies to be uncovered.

Only later would we find out( due to whistle blowing short seller Bill Ackerman's
investigation into Lehman's seemingly glowing profit numbers) that it was all a sham and had nothing to do with their underlying financial condition since they wrote off too little, claimed the non performance of their written off debt as profit and added to it by claiming profit due to the "revaluation" of a stake they owned in an Indian Power company.

The only difference here is that Wells Fargo got lucky and was able to actually record this on their books so it's not an exact comparison in regards to this windfall.

They are guilty of under reporting their level 3 loss provisions just like Lehman Brothers was last year before the exposure of their lies triggered their collapse.

Which leads us back to this blurb from Mr Mortgage from last year:

According to Mr Mortgage(who predicted the collapse of many of the no longer in business entities such as Lehman and Wamu via his reporting of their massive levels of toxic mortgage debt) Wells Fargo has as much as 80 Billion in worthless 2nd lien mortgages on underwater assets.

Reporting a 3 billion profit made up of 50% in non recurring trading windfall on a bought out stock is not a sustainable core business since there are not too many businesses that are being sold at a premium today that can cause Wells Fargo to continue to hit the Jackpot.

Which gets us back to the shameful lack of reporting of this issue by any members of the media or any of the analysts or even hedge fund short sellers.

The Silence is deafening and I guess it will continue to be that way unless I wake up tomorrow as a member of the media.

It was only earlier this week that Analyst Michael Mayo stated that the banks have only written down their loan losses by only 2%.

I am not prepared to go that far and I shudder at the thought since I am about to make the following proclamation:

I believe that the total bailout money needed for these banks to get back to even Steven and close up shop at zero debt is between 11 and 12 Trillion dollars.

Here is my thesis in a nutshell: It's safe to say that these institutions got levered to an average of 30-1 in now toxic assets. A conservative estimate of 30% write downs on these toxic assets leave the banks worthless to the tune of around 10-1 and since the aggregate market cap of these financial institutions is around 1.5 Trillion, they actually need ten times that number to be worth zero.

Symmetry would seem to suggest that Wells Fargo will be the next bank to go under this year since they are the first bank to revert to Lehman style tactics(full disclosure: as of this writing I have no actual stake long, short nor options in Wells Fargo although continued blind leading the blind irrational exuberant myopia may lead me to change my mind and put my money where my mouth is)

The Question that I will ask of my fellow tax paying citizens: Are we prepared to destroy not only our long term future but our immediate future just so that we can bail out these gamblers to the tune of 10 times the money being mentioned today so they can start lending normally again?

Fractional reserve lending allows us to take 1 Trillion and lend up to 10 Trillion in a newly created bank that we can put up for sale so that this solution won't be deemed too socialist.

Isn't an inevitable 10 Trillion dollar bailout more socialist than a new people backed bank of the people by the people?

All the politicians and economists keep telling us that we need this bailout since our economy's life blood is based on lending.

Okay, I bite. I do not like this House of cards based Ponzi scheme of an economy but we are currently stuck in it until natural disaster makes us change our ways since enlightenment does not carry as much capital nor go as far as simple greed.

I do not believe that the public will allow this sham of a bailout to continue going on indefinitely without visible civil disobedience due to massive unemployment( already at over 15% if you pay attention to the Government's U6 unemployment category).

A new national bank funded with 1 Trillion would restart lending again but must come at the expense of ending the daily horror show entitled "Night of the Living Dead Banks and their Bloodsucker proxies".