Monday, May 10, 2010

The Pause That Rephrases

A new series on the financial system and more is starting from our friend and compatriot Phasma Scriptor. He has written extensively on a wide range of subjects including, law, science, religion and finance. You have probably read some of his material. However, you may not have known because he has written as a "ghost writer" for a number of "patriot" authors, litigants and more. His insights are discerned from a lifetime of the pursuit of truth, liberty and justice. He has not battled without injury, scars or loss but he battles on none-the-less. We have collaborated on a number of endeavors and do not agree on some things. Furthermore, we both hold that what we agree on is more important than what we disagree about and that reason and wisdom are contributed to by the willingness to agree to disagree on some things. Finally, since I firmly believe that no one person can contain all truth, wisdom and knowledge it behooves us to weigh alternative counsel and consider all our options before we leap into the blind faith belief that we know what we don't know and conduct ourselves accordingly.

The Pause That Rephrases
Phasma Scriptor

Now that Goldman Sachs & its allies have scooped up gazillions (yes, Virginia, there is a literal gazillion when an accurate accounting can't be made), the cover-up will go from 5th to, oh, maybe, 9th gear (yeah, Virgy, the cover-up started well before this latest in a continuing series of crimes perpetrated by the same old mega-bucks gang).

The pathetic, lame, limp and, ouch, impotent put-up job the US Senate is so pleased to call financial regulatory reform is one of the more embarrassing exhibits in the said cover-up. As I've explained elsewhere, GS arranged the financing packages for the Euro PIGS - Portugal, Italy, Greece, Spain. Then, promptly bet against them. Let's see, does that sound familiar?

On April 27, GS Chair/CEO Lloyd Blankfein, flanked by his slick band of thieves in $5000 suits, was sitting in the Senate chamber pretending to be the cooperative witness re the GS trading scandal involving the GS thief who called himself "Fabulous" (aka Fabrice Tourre), a scandal in which "Fabulous" put together several mortgage-backed securities (mbs) for swindler and GS client John Paulson (it's apparently a requirement that your resume must include "unabashed bunco artist" whether a GS account executive like "Fab" or a GS client w/access to, uh, "special client services"); GS then promptly bet against ... Same song, gazillionth verse.

That very same day those suits are in the Senate, the supposedly independent rating agency, Standard & Poor's, downgraded Portugal's paper 2 notches, Spain's 1 notch and, most beneficial (for GS), Greece's to junk status; remember, this is the perforated stuff GS helped the Portuguese, the Spanish and the Greeks unroll out to the suckers who paid-up at the GS all-purpose $ lavatory. To propose that Blankfein, et al., were thumbing their noses at our duly-elected Senate stooges, self-importantly posturing as guardians of the public trough, is off the mark; blowing their noses at them is closer to the bull, but you could probably pick a bodily orifice amidships that's more appropriate and hits the bull at its, its ... well, anyway, not its eye.

Of course, GS went short all the GS-underwritten TP (as well as the Brit # & the Euro, too) which is propping up the PIGS (as well as the Brit # & the Euro, too) and every denomination of US Tsy TP (what else do you call it when your short-term Tsy Bills get ZERO % interest and the effective rate of longer term issues is NEGATORY) and every other vulnerable sovereign debt on Earth (OK, that IS all sovereign debt on Earth). Sooo, when the S&P downgrades didn't have the desired "trapdoor" effect on the world's financial markets, causing air pocket downdrafts, GS agents tipped the markets a little bit more, on, what shall we call it, Black Thursday? No, the Mother of all "Black" days for the stock market, the day the Great Stock Market Crash began, covers the field. Spike Thursday, for the crazy shape of the price chart, the craziest ever? Maybe, since, though crazier days are ahead with more precipitous spikes, there's an 80% chance they won't be on Thursday; besides, we could always go to Spike II, Spike III, etc. (when this was being written Spike Friday/Monday, when the markets opened, that's OPENED 400 points higher on the DJIA hadn't yet gotten on record yet).

Follow-the-money works here; who benefitted the most from Spike Thursday? GS being short the Earth and the entire Earth having swooned very rapidly, there is 1 and really only 1 suspect in the financial crime of the Century, at least, so far. (Spike Fri/Mon came after the Euro finance ministers decided to jack up the Grecian formula bailout to $1 trillion; hmm, GS designs the PIGS TP and they didn't know this was coming? You don't need to go figure; figuring's all done, system gamed again before the smoky trades are cleared from Spike Thu).

In the immediate aftermath of a terrible shocking crime, the cover-up boost button gets pressed; for instance, after the 1st WTC bombing in 1993, the initial report from an on-scene journalist, looking inside the sizeable hole, said that the "structural steel beams were bent and melted" (I know, I had the car radio on and heard it live). That report was repeated several times over the ensuing 1/2 hour, but, then, that first eyewitness version got canned since it didn't comport with the phony fertilizer bomb story already in the ready. Similarly, instead of having a firing squad of finger-pointing at the hyper-speed traders (like the front-running GS) the very next day, as CNBC bond specialist Rick Santelli vigorously exclaimed should happen (doing so within the polite pause that rephrases the news into politically correct narrative), we, ever the public toilet to the editorial plunger, are getting, first, complete bulls**t (see, see, I can hit the bull where the sun don't shine).

Without bothering to do some easy fact-check, we're supposed to buy into the Bull-oney that some "fat-fingered" order entry clerk keyed a SL order as "16 billion" not "16 million"; the smart liars are backing away from that one since that's just not the way it's done; having started my working career as an order entry clerk at an infamous brokerage, that's an easy dump. Plus, fat-fingered order entry personnel are not to be f**ked with.

What's up next in fables meant to swivel our heads like Linda Blair in the Exorcist? Anything but a serious shout-out to Santelli (there's talk of putting the brakes on high-speed trading, but front-running? Hold your nose, not your breath). In case you haven't seen him or her for awhile, you might want to reconnect with your chiropractor.

Next: The poli-sci-fi factor