Al Peia's Blog: October 11, 2010 posts

Business / Economic / Financial

[ This link to a somewhat more cumulative blog posts page will precede current days news since most all topics remain current in terms of impact and longer-term effect and can be searched by topical index term more easily. The same is provided since the blog site http://alpeiablog.blogspot.com has just been censored as to size by google which is typical for google as nsa / cia / gov’t shill as more are becoming aware of. The same is true for microsoft, another co. that’s seen their best days and relies on the government to maintain their monopoly. Up to now the better page http://www.scribd.com/alpeia is provided for ease of formatting and clarity thereby while the Washington Post page is the real deal but without formatting http://www.washingtonpost.com/wp-srv/community/mypost/index.html?plckPersonaPage=PersonaComments&plckUserId=alpeia&newspaperUserId=alpeia ]

Wall Street: The Speed Traders - 60 Minutes - CBS NewsOct 10, 2010 ... 60 Minutes on CBS News: Wall Street: The Speed Traders - Steve Kroft gets a rare look inside the secretive world of "high-frequency trading ... www.cbsnews.com/video/watch/?id=6945451n [ CBS 60 minutes should be lauded for ‘daring to go where no man dare to go before’, particularly pre-election. Video Robot Traders of the NYSE ‘In a secret new building in new jersey ‘( meaningfully lawless, pervasively corrupt, multi-ethnic mob-infested/controlled jersey / http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm / , the perfect venue for this fraud )’, high-speed computers decide which stocks to buy and sell. Could this kind of automated "trading floor" lead to Wall Street's next "flash crash"?’ ( I’ve included this web site archived file of the transcript of the segment with links to the CBS videos, here http://albertpeia.com/highfrequencytradingcbs60minutes.htm ) I add the following personal observation with regard to a comment made by the only ‘high frequency trader’ who agreed to be interviewed; viz., that the ’process’ was all ‘math’. Unfortunately, investing, investments, security analysis / valuation, is not just math. Indeed, in my MBA Finance ( NYU GBA, eve program which included professors actually successfully working on the street ) I can attest to the complexity of the math / algorithms underlying the financial theory of investing for which there were no ‘short-cuts’ to understanding (Modigliani / Miller, Nobel Prize Winners , for example, were a royal ‘pain in the a ’, the material being far more complex than the far more voluminous but much more easily synthesized law school fare.) The problem with said theory is that it’s just not how it’s done on wall street but rather, geared to being descriptive after the fact because invariably, if used as an investing approach you would find yourself a loser or at best, a tandem market performer (‘Random Walk Down Wall Street’, the ‘Random Monkey’, etc.). Day to day, week to week, the ‘random stroll’ is hard to dispute; yet, behind the scenes a different story of manipulation unfolds; which manipulation has become extremely efficient via lightning speed computerized churn and earn trades, and hence, very lucrative for the wall street frauds but debilitating to the nation. The churning and earning (commissions) is the end in itself. The math for streams of payments and alternatively receipts, and present values thereof is indeed math, and an actual important application of same would be the insolvency, for example, of social security, etc.. I had the fortunate experience to have met with a successful wall street executive (chairman, executive committee, institutional research / brokerage house) who was talking up a career for me on wall street and whom I thought highly of owing to his accomplishments and candor, ie., what you read in , for example, the wall street journal, was total b* s***, etc.. ( In his world there were few if any grey areas; ie., among others, there were only two kinds of people; viz., ‘people with money, and people who want money’. Of course, I knew this to be false based upon such individuals as my Pastor who Confirmed me and who easily could have been a lawyer, uncorrupt judge, etc., and of times past in the u.s. and no longer apposite a career soldier, law enforcers, teachers, artists, etc.). The point is, wall street wasn’t straight then, and far worse, certainly not today. No, the high frequency trades are a scam of great modern day proportion, which eat into the productive capabilities and value of the nation which is set forth elsewhere on this site and evidenced by this continuing debacle and national decline today. A good programmer can easily mask and obfuscate the scam with seemingly lightning fast moves which purport to be rational (but in reality are not or irrelevant), but are merely symptomatic of an economically (self-)destructive exercise for all but the greedy criminally insane on wall street today. As, if not more, important for civilized society is an unwillingness to do literally anything for money (ie., fraudulent wall street, mob, drug cartels, criminals, etc.); which of course is the problem confronting america particularly, and the world generally. ]

The Two Parties in a Race to the Fiscal Bottom The Daily Bail ‘Polticians lie. The national debt clock tells the truth. Brand new David Stockman interview with the Fiscal Times.

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David Stockman, the former budget director during Ronald Reagan’s first term, speaks out on the Obama presidency, the state of the economy, the Bush tax cuts, and what the midterm results might do to the Democratic agenda.

The Bush tax cuts are “unaffordable,’’ he says. Extending them would be a “travesty.” President Obama’s stimulus program was “futile.” Ben S. Bernanke, the Federal Reserve chairman, is undermining the whole economy.

Today, Stockman says,

“I invest in anything that Bernanke can’t destroy, including gold, canned beans, bottled water and flashlight batteries.”

Stockman, Reagan’s budget director from 1981 to 1985, initially became famous for his zeal in slashing government spending on almost everything except defense. Less government and lower taxes, he fervently believed, would ultimately mean more prosperity for everyone. But he will be best remembered for confessing, in an interview with William Greider for The Atlantic Monthly, his disillusionment with the “supply-side” economic policies that led to soaring deficits under Reagan. “None of us really understands what’s going on with all these numbers,’’ he declared, along with many other criticisms that nearly got him fired.

The Fiscal Times [TFT]: What should the president and Congress do about the Bush tax cuts this year?

David Stockman [DS]:

The two parties are in a race to the fiscal bottom to see which one can bury our children and grandchildren deeper in debt. The Republicans were utterly untruthful when they recently pledged no tax increases for anyone, anytime, ever. The Democrats are just as bad — running their usual campaign of political terror on social security and other entitlements while loudly exempting all except the top 2 percent of taxpayers from paying more for the massively underfunded government they insist we need.

In effect, we undertook a national leveraged buyout, raising total credit market debt to $52 trillion, which represented a 3.6X leverage ratio against national income or GDP.

The fact is, the Bush tax cuts were unaffordable when enacted a decade ago. Now, two unfinanced wars later, and after a massive Wall Street bailout and trillion-dollar stimulus spending spree, it is nothing less than a fiscal travesty to continue adding $300 billion per year to the national debt. This is especially true since these tax cuts go to the top 50 percent of households, which can get by, if need be, with the surfeit of consumption goods they accumulated during the bubble years. So Congress should allow the Bush tax cuts to expire for everyone. By doing nothing, the government would be committing its first act of fiscal truth-telling in decades.

TFT: Should the government provide more stimulus for the economy, or cut spending to bring the deficit down?

DS: We are not in a conventional business cycle recovery, so stimulus is futile and just adds needlessly to the $9 trillion of Treasury paper already floating dangerously around world financial markets. Instead, after 40 years of profligate accumulation of public and private debt, and reckless money-printing by the Fed, we had an economic crash landing, which left us with an enduring structural breakdown, not just a cyclical downturn.

The only solution is a long period of debt deflation, downsizing and economic rehabilitation, including a sustained downshift in consumption and corresponding rise in national savings.

Continue reading the Stockman interview at the Fiscal Times

Author's Disclosure: None’

My Weekly Market Forecast: Currency Pairs Edition Summers ‘… On this side of the pond, some 43 million Americans (13% of the total population) are officially living in poverty. The jobs numbers are a joke and all talk of recovery has been manufactured via accounting gimmicks or full-scale fraud. I’m detailing more of this in tomorrow’s article, but for the sake of this week’s forecast, I’m simply trying to point out that the US economy is on the brink of full-scale disaster and at some point (possibly this week) this reality could (will) hit the stock market…’

Markets Continue to Rise Despite Poor Data Equedia Network Corporation‘…It doesn't matter what economic data is being thrown at us. The markets have continued to soar despite poor economic numbers, growth, and scandals. But eventually, these numbers will catch up with the markets.It's no secret that the Obama administration is doing whatever it can to help fuel the growth in the stock market ahead of the midterm elections in November. He has to. The stock market has become a leading indicator for confidence in our economy and judging by Obama's approval rating, the Democrats could easily lose their power in the Senate. That's why they have continuously pumped money into the markets …’

Meaningless Monday: Rethinking That Round Earth Idea Davis ‘… As I mentioned, because other countries aren’t as stupid as we imagine, we need to create 3 dollars in order to borrow 1. That gives us $1 more debt (out of 10) and $2 less value to our remaining pile. How long can that go on? One reason our currency creation is so inefficient is because the people we are giving the money to, the Banks, aren’t willing to invest it in America either. They have their own debt holes to fill and most of the money we give them goes into a derivatives ($200Tn and rising) juggling scheme that makes them look solvent and masks their very, very questionable asset bases.

The banks take the money the Fed is dumping on them and speculate in commodities and foreign currencies and THEN they buy some TBills in order to keep the treadmill running. This forces asset bubbles in things like gold and oil but they too are a complete illusion because it’s only the idiots with dollars that are buying them - the rest of the World stopped chasing shiny metals in June but the flat-Earthers in the US just didn’t seem to get the message. Here’s gold priced in Euros, which is DOWN 8% in 3 months! (chart)

Our stock markets, of course, look just even worse - down 10% to the Euro in the last 3 months, but that won’t stop the MSM from engaging in the Grand Delusion that they are feeding to the voters this month - that everything is somehow going according to plan (what plan?) and happy days are just around the corner - as long as Americans can keep pretending the World is not round at all but a neat little square with our great nation on top and in the center.

Well, there’s a lot to be said for getting out while you’re on top - or at least while there are still enough people fooled into believing you are on top. As the Joker says in the "what plan?" link above - Nobody panics when things go according to plan, EVEN WHEN THE PLAN IS HORRIFYING!

That’s what we have now, a horrifying plan to prop up the US Economy based on the belief that the US is the center of the universe and that the rest of the World will be fooled by our fiscal nonsense. As you can see from the gold chart and the S&P chart - we stopped fooling them a long time ago. What will happen when we can no longer fool ourselves?

It’s a meaningless semi-holiday in America - a day the bulls can only pray will be quiet, because all my charting indicates that real activity is very likely to come to the downside this week.’

Bad News Is Still Good News Nyaradi ‘Last week was all about “bad news being good” and the Fed and QE2. The news was almost uniformly bad, and regarding QE2 the questions were about how much and when and how much is already priced into the markets?

Everything else including mixed earnings reports, “Foreclosure Gate” and an almost unbelievably bad employment report on Friday was overshadowed by the promise of more “punch in the punchbowl” from Dr. Bernanke and his cohorts at the Federal Reserve.

In a continuation of the “bad news is good news” theme, markets were able to rally up to significant resistance and remain vastly overbought while gold continued its tear and the dollar remained under attack.

The only question that seems to remain is whether or not Dr. Bernanke will be able to offset the ongoing torrent of negative news and keep our economic ship afloat.

Looking At My Screens

On the technical front, markets certainly remain in dangerous territory. RSI is at levels that typically precede significant corrections and prices are up against the May highs and significant resistance there. We also see stochastic at overbought levels and investor sentiment at excessively bullish levels.

Contrary to prevailing popular opinion, stock prices can go down as well as up.

The View from 35,000 Feet

On a fundamental level, “bad news continued to be good” as the unemployment report was a disaster and “Foreclosuregate” threatens to freeze the entire real estate market and even threaten the financial system for some unknown period of time.

On the employment front, the economy shed 95,000 jobs instead of a projected small gain and this fact alone has led to the market expecting a new round of quantitative easing coming out of the Feds next meeting. The decline in non farm payrolls wasn’t the only bad news as U6 rose to 17.1% from 16.7%, indicating a higher level of underemployment than last month even as the overall unemployment rate remained static at 9.6%.

There are now fewer people working in America than there were two years ago and for those working, the average workweek remained flat at about 32 hours, indicating no imminent change in hiring by companies.

The other piece of almost unbelievable news was the announcement that many foreclosures are in jeopardy because they may not have been carried out correctly. Allegations of fraud are flying and in response to the flap, foreclosures have been halted in many states including the suspension of foreclosure activities by Bank of America in all 50 states. The crisis seems to be set to widen with the announcement that 40 states attorneys general are joining forces to launch an investigation into these allegations as early as Tuesday.

This is a complex and murky issue but basically it seems to throw into question the validity of thousands of foreclosures that have taken place and present the possibility that this situation could literally freeze the foreclosure process for some unknown period of time.

The ramifications go beyond a frozen real estate market in that it also could spread to big banks like Bank of America (BAC), JP Morgan (JPM) and Citigroup (C) which are highly active in this field and by preventing them from offloading these non performing loans from their balance sheets for some unknown period of time.

Estimates of potential fines could range as high as $10 Billion in Ohio alone for one company being targeted by the Ohio Attorney General and one can only guess about how deep and black this hole might be.

And finally, a couple of notes regarding QE 2 came from the President of the St. Louis Fed who said that its quite possible they could wait until the December meeting to initiate QE2 and a word of warning from the IMF’s chief economist who said on CNBC, “I don’t think we should fool ourselves. We have used most of the monetary ammunition we have.”

What It All Means

So, all in all, this is a fine kettle of fish.

The entire global equities market is betting that “Big Ben” can save the world yet again and that he’ll start in November. Meanwhile we have a dramatically slowing economy that can’t generate even a small level of job growth and the potential for a massive implosion in the real estate and credit world involving a gigantic asset class, Residential Mortgage Backed Securities.

I’ve said before that you can’t make this kind of stuff up and, unfortunately, that’s still true today as we face the beginning of what could be an almost irrelevant earnings season.’

Fed's Yellen: Possible that low rates feed bubbles (Reuters) [ Another one of those daah! moments as if the ‘senile greenspun / no-recession helicopter ben’ debacle, along with other missteps, isn’t testament to that. ]

America’s Third World Economy Paul Craig Roberts | The latest jobs report issued shows that America’s transformation into a third world economy continues.

More Bad News: 10 Things You Should Know About The Latest Economic Numbers The Economic Collapse | We are in such a rapid decline that it is hard for most Americans to even comprehend it.

Foreclosure Freeze: JPMorgan Chase, GMAC Deny “Robo-Signers” Led to Inappropriate Foreclosures Carlo Gabriel Simbajon | “Robo-signers,” a termed coined by Iowa assistant attorney general, Patrick Madigan, refer to bank employees or contractors who signed off on mortgage documents without reading or checking them.

Worldwide Hyperinflation Race FSK’s Guide to Reality | Aiming for stable exchange rates, other countries are also inflating their money.

Gold Rises as Bankster Currency War Gains Momentum Globalist loan sharks feign worry. Unemployment is so bad in the United States, the government is thinking about slapping tariffs on cheap Chinese slave labor products.

Dollar falls as ‘currency war’ concerns linger The dollar fell against the euro and yen on Monday after the world’s top finance officials failed to reach a consensus on measures to head off what some see as a looming “currency war”, analysts said.

Foreclosuregate If you work in the mortgage industry or for a title insurer, you might not want to make any plans for the next six months. Foreclosuregate is about to explode. It is being alleged that many prominent mortgage lenders have been using materially flawed paperwork to evict homeowners.

Fed Intervention Could Lead to ‘Flash Crash’: Strategist The stock market is at risk of another flash crash because of the Federal Reserve’s liquidity-boosting measures, Robin Griffiths, technical strategist at Cazenove Capital, told CNBC Monday.

(10-11-10) Dow 11,010 +3 Nasdaq 2,402 +0 S&P 500 1,165 +0 [CLOSE- OIL $82.21 (-54% for year 2008) (RECORD TRADING HIGH $147.27) GAS $2.74 (reg. gas in LAND OF FRUITS AND NUTS $3.11 REG./ $3.26 MID-GRADE/ $3.35 PREM./ $3.69 DIESEL) / GOLD $1,354 (+24% for year 2009) / SILVER $23.35 (+47% for year 2009) PLATINUM $1,683 (+56% for year 2009) / DOLLAR= .71 EURO, 81 YEN, .62 POUND STERLING, ETC. (How low can you go - LOWER)/ 10 YR NOTE YIELD 2.38% …..… AP Business Highlights ...Yahoo Market Update... T. Rowe Price Weekly Recap – Stocks / Bonds / Currencies - Domestic / International This Is a Secular Bear Market and The End of Buy and Hold … and Hope MARKET MANIPULATION AND HOW THE LATEST BUBBLE-FRAUD PRE-COMING CRASH IS BEING ACCOMPLISHED 3-11-10 6 Theories On Why the Stock Market Has Rallied 3-9-10 [archived website file] Risks Lurk for ETF Investors The bull market that never was/were beyond wall street b.s. when measured in gold Property Values Projected to Fall 12% in 2010 Jan 31, 2010 The Week Ahead: Risk Is Off the Cliff; Unwind Has Begun Jan 31, 2010 01-13-10 Forecast for 2010 from Seeking Alpha Contributor THE COMING MARKET CRASH / CORRECTION 1-28-10 Maierhofer (01-15-10) 11 Clear Signs Economy Sinking Economic Black Hole 1-22-10: 20 Reasons Why The U.S. Economy Is Dying And Is Simply Not Going To Recover Current Economic / Fiscal Charts Trendsresearch.com forecast for 2009 1-7-10 Crash is coming! ‘WORST ECONOMIC COLLAPSE EVER’ Must Read Economic / Financial Data This Depression is just beginning The coming depression… thecomingdepression.net MUST READ: JEREMY GRANTHAM’S QUARTERLY UPDATE 25 January 2010 (850 on the S&P) by TPC The Next Wave of Collapse is Coming Sooner than you think Sliding Back Into the Great Depression ABSOLUTELY, ABSURDLY, RIDICULOUS! SELL / TAKE PROFITS WHILE YOU CAN SINCE MUCH, MUCH WORSE TO COME!

National / World

Confirmed: Court Did Rely on Oath Keeper Association to Take Baby Stewart Rhodes | Either you defend the Constitution for everyone, or we may as well just scrap it and let government agencies and judges do whatever they want to those they deem bad.

Gold Rises as Bankster Currency War Gains Momentum Kurt Nimmo | A global currency war will crash national economies and foment social chaos of the sort the globalists will exploit in order to sell their world government agenda.

Feds Treat Baby-Snatch Protesters Like Terrorists Paul Joseph Watson | FBI brings bomb dogs to hospital demonstration in effort to smear dissent against state kidnapping of children on political grounds as domestic extremism

Inflation to Make All Americans Billionaires By 2020 National Inflation Association | When our government creates inflation with the goal of generating higher incomes, the real incomes of Americans always decline dramatically.

7/7 Investigation Day One: “All Conspiracy Theories Have No Basis” Over five years after the London bombings of July 7, 2005 took place, an inquest set up to explore the attacks has declared on day one that any deviations from the official version of events has no basis in evidence.

CONFIRMED: Court Did Rely on Oath Keeper Association to Take Baby There has been some confusion about this case, leading some commentators to believe that the reference to John Irish’s “association” with Oath Keepers was in some other document, rather than in the affidavit relied on by the Court’s Order. Alex Jones’ site, in an effort to protect the privacy of the family, posted excerpts from two different documents, leading some to question where the reference actually was.

Holdren 1969 : The Science Is Settled – Everyone Starving Before The Year 2000 Turns out we have all been dead for over a decade. So what are we arguing about? Holdren wrote this in 1969. Real Science Oct 11, 2010 Turns out we have all been dead for over a decade. So what are we arguing about? Holdren wrote this in 1969.

World food production must double in the period 1965-2000 to stay even; it must triple if nutrition is to be brought up to minimum requirements. That there is insufficient additional, good quality agricultural land available in the world to meet these needs is so well documented (Borgstrom, 1965) that we will not belabor the point here.

Then he went into a long diatribe about how we are going to run out of water, energy, food, land – and that the heat from nuclear power plants is going to destroy the climate.

A more easily evaluated problem is the tremendous quantity of waste heat generated at nuclear installations (to say nothing of the usable power output, which, as with power from whatever source, must also ultimately be dissipated as heat). Both have potentially disastrous effects on the local and world ecological and climatological balance.

This guy must be the life of the party. After a dozen pages of psychotic disaster prediction, he gets to the punch line. He wants to snip men’s private parts.

If we may safely rule out circumvention of the Second Law or the divorce of energy requirements from population size, this suggests that, whatever science and technology may accomplish, population growth must be stopped.

But it cannot be emphasized enough that if the population control measures are not initiated immediately and effectively, all the technology man can bring to bear will not fend off the misery to come.’0 Therefore, confronted as we are with limited resources of time and money, we must consider carefully what fraction of our effort should be applied to the cure of the disease itself instead of to the temporary relief of the symptoms. We should ask, for example, how many vasectomies could be performed by a program funded with the 1.8 billion dollars required to build a single nuclear agro-industrial complex, and what the relative impact on the problem would be in both the short and long terms. The decision for population control will be opposed by growth-minded economists and businessmen, by nationalistic statesmen, by zealous religious leaders, and by the myopic and well-fed of every description. It is therefore incumbent on all who sense the limitations of technology and the fragility of the environmental balance to make themselves heard above the hollow, optimistic chorus-to convince society and its leaders that there is no alternative but the cessation of our irresponsible, all-demanding, and all-consuming population growth.

In other words, he proposed forced sterilization based on his hair-brained theories. His reward for being dangerous, wrong and anti-democratic? Obama made him his science advisor.

Drudgereport: RASMUSSEN: 63% Angry at Policies of Federal Government; 43% Very Angry... America on 'brink of a Second Revolution'... [ This is more real than most people can imagine! ]SHE'S A WHAT?
BROWN CAMP CALLS HER A 'W**RE'...
SHOCK AUDIO... Biden: 'If We Lose, We're Going To Play Hell'..POLL: BUSH PULLS EVEN WITH OBAMA [ WOW! THE ULTIMATE INSULT … WELL, AS I’VE BEEN SAYING, THERE’S VERY LITTLE DIFFERENCE … YET, WOBAMA HAD THE EASIEST ACT IN THE WORLD TO FOLLOW AND BLEW IT … OR THEM, BY NOT DOING WHAT HE CAMPAIGNED AND WON ON … BUT STILL, BUSH THE WAR CRIMINAL, MORON, INCOMPETENT, ETC., DOESN’T EVEN WARRANT A MENTION, SO DUMB AND PATHETIC WAS HE … POOR WOBAMA]JOBLESS RATE TOPS 9.5% FOR 14 STRAIGHT MONTHS... USA Won't Recover Lost Jobs 'Until March 2020' At Current Pace … (and they’re still dreamin’) ... Buchanan: Food Stamp Nation... WSJ: Dem unleash IRS and Justice on donors to political opponents … ( but still no wall street fraud prosecutions … they must be payin’ the big bucks ) ....
GOP Leaders Slam Obama Over Foreign Contributions 'Lie'...
FLASHBACK: Obama Accepting Untraceable Donations...
Dem attack ad sets 'new low for mud'...

REPORT: Brown's wife, not campaign aide, called Whitman a 'whore' … [ I’d be more concerned with the rudy giuliani kiss of death endorsement and the folowing seemingly indefensible actions ... Brown Lays Out Sharp Contrast with Billionaire Opponent in Two New ... Oct 1, 2010 ... The first ad highlights Jerry Brown's fiscal prudence and job creation ... when she paid herself $120 million right before the company laid off 10% of its workers.]

Dollar continues plunge as 'currency war' concerns linger...
Putin Selling First EURO Bonds...
China Reserves May Hit $2.5 Trillion...
Regulators planning worldwide rules for large firms...
420 banks demand 1-world currency...

FDIC may seek $1 billion from failed-bank executives (Washington Post) [ Isn’t this exactly what the DOJ should be doing vis-à-vis the frauds on wall street; and additionally, the wall street frauds et als should as well be criminally prosecuted, jailed, fined, and disgorgement imposed.] The agency has authorized lawsuits against more than 50 officers and directors of failed banks across the country.

Jobless numbers pose challenge for Obama, Democrats (Washington Post) [ My God! You can’t make this stuff up. The lunatics are running the asylum; even the senile ones like the co-architect of the current debacle, greenspun. Challenge? I’d say Gordian Knot. And, importantly, no swords allowed … they’re all in Afghanistan, Pakistan, Iraq, etc… ]The latest report, showing the unemployment rate remained at 9.6 percent, is the last before crucial midterm elections in which the troubled job market has emerged as a paramount issue.

Chorus builds for foreclosure moratorium (Washington Post) [ Sounds like a plan! After all, foreclosures and recoveries, like oil and water (golly, I must still have BP / gulf spill on the brain), they don’t mix. And, we all know as per no-recession helicopter ben, we’re in recovery mode, green shoots and all! ] Pressure for a nationwide moratorium mounted Friday when Bank of America, the nation's largest bank, halted evictions in all 50 states and Senate Majority Leader Harry M. Reid (D-Nev.), who is locked in a tight reelection campaign, called on other major lenders to follow suit.

Buyer anxiety mounts as foreclosure deals freeze / Homeowners' dreams in limbo (Washington Post) [ Ah! That’s not so bad … you know … being in limbo, that is … after all, as the lobotomized VP Biden has warned, ‘Drudgereport: Biden: 'If We Lose, We're Going To Play Hell'..’ … so that place between heaven and hell (limbo) ain’t lookin’ so bad … compared to hell that is.] While impact of halted sales has been worse in regions where lenders need court orders to seize homes, D.C. area market has also been affected.

Arab League backs Palestinian refusal on talks unless Israel halts West Bank settlements (Washington Post) [ Lots of backslappin’ in israel mission accomplished … yeah, another fine mess they’ve gotten the world into … another set of peace talks down the drain, again sabotaged by the israelis … not that the israelis had anything in mind other than literally … to talk … out of both sides of the mouths. ]

Bulls Celebrate Bad News: Dave's Daily ‘The unemployment report came in "worse than expected" but in this Orwellian environment when the mantra is: "good news is good and bad news is better", well then, that's the way we roll. Bulls like the notion of more QE, zero interest rates and Washington gridlock. As to the latter, distrust of government competence and fiscal discipline has never been more universal. So we rallied... However, things weren't all peaches and cream since chip equipment maker Novellus (NVLS) issued a warning pulling down its shares and dragging others down with it. And, while it may seem nice that many banks are halting foreclosure procedures it really just postpones the inevitable and makes things harder for shareholders--unless another bailout is in the works. Markets are "forward-looking" and if the current theory holds, there must be a lot of bad news ahead! …’

The Real World vs. the Stock Market Reitmeister ‘September's Employment Situation was worse than expected Friday morning. Yet bad news is good news these days for those who think a second round of Fed quantitative easing (QE2) will bolster the markets. So stocks bolted into positive territory on the day, pushing up to Dow 11,000.

It’s an odd dichotomy. We have a somewhat improving economy. Yet the average person does not feel better about the situation. That’s because either they or someone close to them is out of work. (The classic economic joke is that a Recession is when your neighbor is out of work. A Depression is when you are.)

Along these lines I noticed something odd today. I drove to my children’s school for Parent-Teacher conferences. The school is 14 miles away along fairly busy roads. On the route are three McDonalds. That sounds fairly normal. But then I saw five Cash for Gold locations. Two of them are brand new; the other three came around just over the past couple years.

Yes, gold prices are high… but the real reason for the existence of these places is for people to trade in family heirlooms for cash because they are going broke. Then throw in all the vacant stores and it’s hard to get a sense that things are truly getting better.

So why are corporate profits going higher? Three main reasons:

1) Major cost cutting. Mostly on the staffing side of the equation. So each dollar in revenue produces more profit.

2) Modestly improving US economy moves up revenue a bit. Combine that with #1 above and it creates attractive year over year profit growth.

3) About half of US corporate profits these days come from overseas. Europe may be weak, but growth in China, India, Brazil etc. more than makes up for that shortfall.

This is why healthy corporate profits and a rising stock market seem to be disconnected from the realities in our own backyards. The good news is that conditions in the US should keep modestly improving, which certainly bolsters the case for the stock market going forward. Combine this with the alternatives to the stock market right now are not attractive.

Holding cash? No thanks.

Treasuries? That bubble is going to pop sometime (and yes I would recommend buying TBF or TBT for when that party takes place).

Gold? That is getting frothy right now. I might be tempted to pick up some on a pull back. But my history of trading gold is poor. In my long term account I’ve been riding the bull rally since 2002 when prices were around $300 per ounce. Still have plenty of shares on hand, mostly GDX (gold miners ETF).

There is lots in store next week when earnings season heats up. If good results combine with healthy guidance for the future, then the market will move to the recent highs of Dow 11,300. If the results are poor, then we'll probably see a retrace to the 50/200 day moving averages which are converged at around 10,500. My bet is that we do make it to 11,300. I'm not expecting much beyond that til next year.

My Two Cents

During the day I read many other investment articles of interest. Here are links to some new ones with my two cents added underneath.

Rail Traffic Maintains Year High Levels (Todd Sullivan)

There are a lot of estimate increases recently for the major rails. This is a very positive sign going into earnings season. I recently picked up some UNP because of it. But no shame in CSX Corp. (CSX), Kansas City Southern (KSU), Norfolk Southern (NSC) etc.

Gaining Traction with Caterpillar? (Ray Merola)

All the fundamentals are going right for them including the recent drop in the US dollar making their exports more attractive. I personally prefer Cummins (CMI) and Joy Global (JOYG). But no shame in owning CAT.

We Don't Need QE2 (Calafia Beach Pundit)

Agreed. No shortage of money. And no person in their right mind would hold cash right now if they felt there wasn't a better way to get a return. So if they are not risking that money it's because the reward isn't there. That is the problem.

Disclosure: I own shares in JOYG, CMI and UNP

Bank of America halting all foreclosure sales The Washington Post | Bank of America said Friday it is halting all foreclosure sales and foreclosure proceedings nationwide while it reviews the documents being used to justify homeowner evictions.

Three Horrifying Facts About the US Debt “Situation” Phoenix Capital Research | The US Fed is now the second largest owner of US Treasuries.

Dollar Tumbles as Fed Prepares to Print More Money Reuters | The Fed may lead the way into more aggressive quantitative easing, which is seen knocking the dollar lower.

Federal Reserve Officials: Americans Are Saving Too Much Money So We Need To Purposely Generate More Inflation To Get Them Spending Again Some top Federal Reserve officials have come up with a really bizarre proposal for stimulating the U.S. economy. As unbelievable as it sounds, what they actually propose to do is to purposely raise the rate of inflation so that Americans will stop saving so much money and will start spending wildly again.

World Risks Greater Depression if Currency Tensions Escalate: Mobius Rising tensions amid an escalating global currency war has sparked talk of capital controls, but such a move would be dire for markets, warned Mark Mobius, executive chairman of Templeton Emerging Markets Group on CNBC Friday.

Grayson Sends Letter To Geithner, Bernanke Demanding Foreclosure Freeze, Warns Of Systemic Bank Failure Risk Alan Grayson is back on the scene, having sent a letter to Financial Stability Oversight Council which includes pretty much all of Wall Street’s pawns, including Bernanke, Geithner, Bair, Gensler, Walsh, and DeMarco, in which he asks the FSOC to “suspend foreclosures until this problem is understood and its ramifications dealt with.”

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The news was bad on the jobs front, but stocks rally anyway. The new b* s* story, things so bad that more fiat Weimar dollar currency will be injected into ‘the system’ (QE, etc.) and presumably find their way to stocks for the old ‘churn-and-earn’. This is a great opportunity to sell / take profits since, beyond the ‘anything goes’ pre-election spin, market-frothing, etc., there’s much, much worse to come. Previously: This is so owing to the irrevocable structural shift (discussed many times on this site) that has occurred in the most negative sense for the defacto bankrupt u.s.. The ol’ days are done! It’s a whole new ballgame. The following is a pragmatic summary explanation of the short-term that is not, nor ever has been sustainable since the money for the churn-and-earn worth less paper movement has to come from some real place which is downside all the way for solid and real economic growth (don’t forget; the so-called minds that brought on this continued debacle for which frauds they’ve not been prosecuted are, with the help of legislated mark to anything accounting rule changes and churn-and-earn high frequency programmed trading, now flush with the proceeds of their multi-trillion dollar fraud / scam. Indeed, they’re shootin’ for 500 dollar loaves of bread and 1 dollar stocks selling for like amount

THE NEW WALL STREET FRAUD / SCAM- `An easy to understand, illustrative, simple (if not simplistic) analogy, though not perfect, to wall street’s current scam / fraud with corrupt fed / government cooperation is as follows:`

(These Amounts Are Not Real But Illustrative)

`$1 share of stock`

$1 paper dollar

$1 piece of gold

$1 loaf of bread

$1 bond

$1 cd

Valuation after doubling amount of money (printing, QE, etc.) in dollars

$2

(but likely less than the temporary spike accorded hard assets)

$1

$2

$1

It is axiomatic that inflation bankrupts the lender (as a simplistic rule). Indeed, the bond and cd (both loans, your assets) are still worth the debased $1 though they buy but half the real, hard assets ie., gold, precious metals, commodities, etc. (hence, the appreciation we’ve seen). The share of stock, though paper, seems to enjoy an advantage over the aforesaid debt instruments particularly in light of the artificial demand that the computerized buy programs along with the QE funds made available to stimulate demand for these paper shares and the spin accorded same. The problem is, while the churn and earn commissions are also eating away at the surplus funds which are artificially enhancing demand for the paper shares of stock, the quality of earnings and the stability of the earnings (higher costs, etc.) of the companies of said paper shares are negatively impacted which historically has ended quite badly for all but the frauds on wall street. Moreover, unless they’re complete fools, who would buy debt instruments in such an environment, least of all those from defacto bankrupt america. There has never, nor could there be an exception to this bad outcome since no new value is created by increasing the amount of money by printing more and the debasement thereof, particularly where there has been an irrevocable structural shift in real economic terms precluding same and now as well, a deficit scenario that is insurmountable and has begun to eat into GDP. The foregoing also is an attempt to drive / herd investors into stocks which enables the insiders to sell high as well as to churn and commission the artificial bubble, however ephemeral.

The glaring problem is also the multi-ethnic mob-infested, corrupt, overly extravagant and costly ny-nj-ct metropolitan area (but particularly new york / wall street and new jersey) sinkhole / drain for the rest of the nation.

We Are Looking at Trillion-Dollar Plus Annual Interest Payments on U.S. Debt Owens Krugman: We’re Going To Have To Default On Our Debt One Way Or Another Some dour commentary from Paul Krugman this morning on the implications of our monster debt. Economists Herald New Great Depression The world is currently experiencing the modern day equivalent of the Great Depression, according to a prominent economist who has added his voice to scores of others now forecasting ongoing economic doom on a scale not seen since the 1930s.) , and my position and that of demographer Dent ( Prechter and many others are also in this camp although I believe he does not factor in sufficiently the debasement of the u.s. currency / dollar in arriving at his numbers which do however, at 1,000 on the DOW reflect real, as opposed to inflated values of 3-4,000 owing to the ever more worthless Weimar dollars which provides ‘spin material’ for the wall street frauds but is really quite ominous going forward, and very detrimental in real economic terms.) [This is a global depression. This is a secular bear market in a global depression. The past up move was a manipulated bull (s*) cycle in a secular bear market. This has been a typically manipulated bubble as has preceded the prior crashes with great regularity that the wall street frauds and insiders commission and sell into. This is a typical wall street churn and earn pass the hot potato scam / fraud as in prior crashes’. This national decline, economic and otherwise, will not end until justice is served and the wall street frauds et als are criminally prosecuted, jailed, fined, and disgorgement imposed.] [ The reason for the necessity of prosecution is founded in the circumstances surrounding and the mindset of what one would deem ‘antisocial personalities’ (disorders) ( I prefer the prior descriptor of such as psychopathic; the euphemistic ‘sociopathic’ was ‘far too understanding’ in my view of the social / environmental factors allegedly giving rise to such negative / destructive behaviors. I don’t buy it.) Specifically, accepted studies / findings have concluded that the essential defect in those with antisocial (psychopathic) personality disorders is an inability to respond normally to fear-inducing stimuli, leading in turn to an inability to inhibit responses that should, but, as with wall street, have not resulted in punishment. Thus, while I think most on wall street have proven themselves criminally insane (for the money, ie., Stewart, ‘Den of Thieves’ / ‘Liar’s Poker’, the most recent financial debacle / crisis, which continues to this day); at the least, owing to a lack of fear of prosecution / punishment, they have become defacto sociopathic / psychopathic. ] Krugman: It's All Downhill From Here Cullen Roche Love him or hate him Paul Krugman has been awfully right with regards to the macro picture in the last few years. He’s one of the rare economists who had the foresight to see the housing bubble and the likelihood of economic downturn that would result from it. Krugman recently caused a stir when he said the US economy was headed for the third depression. Here Are 13 Signs That We’re Actually In A Depression Right Now Gregory White** | David Rosenberg has outlined, in his latest letter, the 13 reasons with this so-called recovery is actually a depression… David Rosenberg has outlined, in his latest letter, the 13 reasons with this so-called recovery is actually a depression.Rosenberg sums it up like this:

This is what a depression is all about — an economy that 33 months after a recession begins, with zero policy rates, a stuffed central bank sheet, and a 10% deficit-to-GDP ratio, is still in need of government help for its sustenance.

Harry Dent, Jr. Economy will be in a Depression by 2011

The worst of this next depression is likely to hit between mid-2010 and mid-2013, especially around early 2011, but if the banking system continues to implode a deep downturn or depression could begin sometime in 2009 instead of 2010.
Dow will Fall to 3,800 – 4,500 by 2012 Nasdaq will Fall Below 1,100, its 2002 low, by late 2010 or mid-2012 at the latest. Inflation will Increase until mid- 2010 and then turn to Deflation Interest Rates will Increase U.S. Dollar will Decline Housing will Decline by 40 – 60% from Today’s Levels Greatest Economic and Banking Crisis since the 1930s will Occur Between 2010 and 2012).

Just a push of the computer programmed trade button and off we go, reality / valuation / economics be damned. In real security analysis (very simplified / summarized), as opposed to the continued frauds on wall street, one must begin with the largest and most significant aggregate (a simple word picture / analogy: ‘rising tide lifts all boats’). If you get this right, the probabilities in your favor are substantially enhanced. From there, you want leading industries, and leading companies within said leading industries (again, larger aggregates then picks, to enhance probabilities, not guarantees, in your favor). Your time frame, 1-3-5 yrs tops for projections, (including income statement/EPS, balance sheet, and applying an appropriate P/E – a detailed, multi-faceted approach beyond what could be described in this summary); and, that’s all they are, projections. Beyond that time frame, your guess. On fraudulent wall street, every day, though already discounted in large part (6-8 mos, approx.), the market spins, churns, and with lightning fast computerized high-frequency trade programs commissions in huge volumes like no other time in financial history when real valuation meant something, with no net economic value added, but very lucrative to the frauds on wall street, which ultimately is a net detriment to the economy / the nation /and other industries as we’ve seen and as described elsewhere on this site and in these posts http://albertpeia.com . Preposterously, they even sometimes refer to seasonal factors as if hearing them for the first time and ‘explaining’ an up move (almost invariably already discounted). Today, they shrugged off the deepening economic reality despite the election year frothing / manipulations.

UNDERSTANDING THE ( LAST BUT ONGOING SINCE WORTHLESS TOXIC ASSETS / PAPER, THE PRODUCTS OF THEIR FRAUD, NOW MARKED TO ANYTHING AS PER LEGISLATED FASB RULE CHANGE STILL OUT THERE IN THE MANY TRILLIONS) GREAT WALL STREET FRAUD (summarized - as posted on this site on the dates as indicated)
*(12-30-07) The best and easiest to understand analogy, though not perfect, to the wall street markets is the kiting of checks at lightning computerized trading speed on which commissions are taken although there is nothing of real value underlying their fraudulent scheme. (10-10-08) Now to bring this analogy closer to the current crisis, assume as is the case of the worthless sub-prime securities, there is no charge off/debit as is ordinarily the case with a cleared check and the worthless 'collateralized sub-prime security' is repackaged, resold, recommissioned based upon as collateral the original worthless security which is in turn repackaged, resold, recommissioned based upon as collateral the subsequent worthless security, and so on to the tune of (hundreds of) trillions of this worthless, fraudulent paper (blatent securities fraud which must be prosecuted and fraudulently derived profits disgorged).
*(12-31-07) HIGH FREQUENCY PROGRAMMED TRADING: The ubiquitous computerization of wall street functions, the enhancement/advance/integration of the said computer equipment/peripherals in terms of computing power and speed, along with the concomitant advance/sophistication of the programming concerning same has enhanced the ability of the frauds on wall street to effect their frauds with blinding speed vis-à-vis the funds entrusted to their care by way of programmed trades, ie., buy, sell, stop limits, etc.. An example (though not perfect) is illustrative: Dow drops 200 points as programmed sell orders kick in with some not so fudged negative news. Nothing changes but the following day the market rises 205 points on programmed buy orders (a little higher despite the absence of any positive news). Hence, the huge swings which have become ever so more prevalent. Though nothing has changed, hundreds of millions of dollars without relation to any value added (in economic terms, service, etc.) is taken in commissions (percentages, points, spreads) by the frauds on wall street on huge computerized trading volume (hence, the multi-billion dollar bonuses on top of huge salaries, etc.). The fact is that these funds entrusted to them are so large that such computerized “buys” can simulate other than rational demand causing prices to rise solely to generate huge commissions to them and new funds coming in (as in a ponzi scheme). The corrupt government has been complicit in terms of false economic reports, legislation protecting the fraud (ie., exemption from RICO accountability, etc.), while the courts are also corrupt facilitators (ie., new york, new jersey, california, etc., and similarly don’t count on arbitration panels). There was a time when transaction costs mattered in financial investment decisions. The trades/commissions are not a net positive for the economy but are indeed of great benefit to the recipients of same (who like termites eat away at other peoples’ money, and whose marginal propensity to consume is less than those allocating their monies /pensions /401ks/savings etc.; hence, the mess to follow). Finally, the NASDAQ/tech has become the “safe haven” but in reality as in the dot.com bust days are just the great story without much fundamental understanding that keeps the fraudulent ball rolling.
(1-01-08) Remember: more contrived wasteful commissions to the wall street frauds, the level and percentage of which should be examined in light of computerization and decreased costs attendant to same especially since only A Very Small Fraction Of What wall street Does Is A Net Positive For The Economy (New Investment Capital via, ie., ipo’S), The Rest Is Tantamount To A (Economically) "Wasteful Tax" (On The Economy) via 'churn and earn' computerized programmed trades.
*(1-3-08) $14 billion ($21 billion in 2006) in bonuses to the lunatic/frauds on wall street for a commissionable (sub prime bundled) fraud well done, inflation up, dollar down, oil prices up, manufacturing down; one analyst/reporter/journalist from inside sources pegs the sub-prime dollar value of the shilled worthless paper at $516 TRILLION (even a percentage of same renders the problem unfixable-hence, culpable parties must be held accountable and disgorge their ill-gotten gains from, ie., commissioning worthless paper, taking a point here or there and fraudulently passing same on, ad infinitum, etc.). Of course there are also a plethora of garden-variety frauds as always, ie., 10-B-5, insider trading, etc..

*(10-10-08) Now to bring the initial check-kiting analogy closer to the current crisis, realize as is the case of the worthless sub-prime securities, there is no charge-off/debit as is ordinarily the case with a cleared check and the worthless 'collateralized sub-prime security' is repackaged, resold, recommissioned based upon (collateralized by) as collateral the original worthless security which is in turn repackaged, resold, recommissioned based upon as collateral the subsequent worthless security, and so on (a geometric progression) to the tune of (hundreds of) trillions of this worthless, fraudulent paper (blatent/flagrant securities fraud which must be prosecuted and fraudulently derived profits disgorged).

THE BAILOUT FRAUD/SCAM

This is not brain surgery and the fraud, bonuses/compensation (mortgages, subprime and otherwise, are only a relatively small portion of the fraud / scam providing “cover / collateral” for the worthless but heavily commissioned paper over and over again in a multiplicity of different forms of worthless paper) in the mega-billions should first be disgorged before taxpayers are forced to pony up and pay the frauds again for their fraud which caused the problem in the first instance, must be prosecuted. It should also be noted that despite the rhetoric, the wall street bailout will NOT solve the crisis or eliminate the economic pain except to make permanent the fraudulent wealth transfer to the most well healed heals/frauds/criminals in the nation who caused the so-called crisis by their greed/corruption/fraud.

Stocks surge to highest level in nearly five months (Washington Post) [ Come on! The service sector? That non-productive morass of paper pushin’, commissionin’, make-work sector, in an election year no less, the impetus for a market rally along with Japan’s zero interest rate prep for yet another lost decade … I don’t think so! What total b*** s***.

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National / World

Chemtrails: What In The World Are They Spraying? Steve Watson & Paul Watson | Over the past decade and more, long white trails emanating from jet planes have been seen lingering in the skies, often expanding and merging to form vast swathes of artificial cloud cover.

SPLC, DHS, Community Officials Team Up to Attack Patriot Groups Kurt Nimmo | DHS spawned “Countering Violent Extremism Working Group” maps out plan to demonize patriotic Americans as violent extremists.

Debunking the DOJ’s Hit Piece, Part 2: Assault on The Constitution and Those Who Revere It Richard Anatone | The Department of Justice’s glossary “Investigating Terrorism and Criminal Extremism: Terms and Concepts,” is a hit-piece against the citizenry who are waking up to the lies of Big Government

Hyped Terror Threat Exposed as Political Trick, Effort to Continue Afghan Occupation Kurt Nimmo | Europeans skeptical of threat while Pakistani diplomat says warning is politically motivated.

Government Seizes Newborn Baby Over Political Beliefs Of Parents Paul Joseph Watson | Couple who took part in Oath Keepers online discussion forum have child snatched in shocking new level of police state persecution.

SPLC, DHS, Community Officials Team Up to Attack Patriot Groups Stewart Rhodes writes today on the Oath Keepers website that the Southern Poverty Law Center is now officially part of the Department of Homeland Security. Rhodes sources a DHS document, entitled “Countering Violent Extremism Working Group,” that lists Richard Cohen as a member of the DHS created group. Cohen is president and CEO of the Southern Poverty Law Center. In addition to Cohen, a number of law enforcement officials are members of the DHS group, including Austin Chief of Police Art Acevedo.

Chemtrails: What In The World Are They Spraying? What In The World Are They Spraying? is an investigation into all aspects of the phenomenon of chemtrails. Over the past decade and more, long white trails emanating from jet planes have been seen lingering in the skies all over the planet, often expanding and merging to form vast swathes of artificial cloud cover.

Obama is Casting Actors for Town Hall Audience per Nielsen’s ‘Back Stage’ What are you doing, October 14th? Would you like to be a “town hall meeting” shill for Barack Obama? According to this official casting notice in Nielsen’s Back Stage site, you still have time to apply and/or audition.

Government Seizes Newborn Baby Over Political Beliefs Of Parents UPDATE: We have now obtained a copy of the affidavit which is reprinted below. This confirms that Irish was targeted partly because of his association with Oath Keepers, in addition to the fact that he bought guns. Apparently, exercising the second amendment is now reasonable justification for the state to steal your child in America.

Hyped Terror Threat Exposed as Political Trick, Effort to Continue Afghan Occupation The United States, however, with plenty of fear-mongering provided by the corporate media, is sticking by the story. U.S. Adm. James Stavridis, NATO’s top commander in Europe, said today that the unsubstantiated terror warning underlines the need for the alliance’s mission in Afghanistan.

Oath Keepers Statement On Seizure Of Baby Over Parents’ Support Of Constitution We are doing all we can to confirm and document this. But if is IS accurate, and a newborn child was ripped from her mother’s arms because the parents were “associated” with Oath Keepers by simply being members of our online ning discussion forum, then this is a grave crossing of a very serious line, and is utterly intolerable. It cannot be done. It cannot be allowed to stand.

Fed weighs a more focused response (Washington Post) [ Yeah! And, they better be quick about it because, when it comes to the fed, the plethora of rumors of their imminent demise are NOT greatly exaggerated. Drudgereport: America on 'brink of a Second Revolution'... [This is more real than most people can imagine! ] The Fed is dead, maybe by 2012 Paul B. Farrell - MarketWatch ARROYO GRANDE, Calif. (MarketWatch) — ‘OK, so Nassim Nicholas Taleb, the “Black Swan” author, actually said: “The Fed won’t exist in 25 years.” Warning: It’ll happen much sooner, fallout of the coming Second American Revolution. It’s inevitable: Wall Street banks control the Federal Reserve system , it’s their personal piggy bank. They’ve already done so much damage, yet have more control than ever. Tea-party activists in their own words Tea-party activists talk to Russ Britt on what their movement represents. Warning: That’s a set-up. They will eventually destroy capitalism, democracy, and the dollar’s global reserve-currency status. They will self-destruct before 2035 … maybe as early as 2012 … most likely by 2020. Last week we cheered the Tea Party for starting the countdown to the Second American Revolution. Our timeline is crucial to understanding the historic implications of Taleb’s prediction that the Fed is dying, that it’s only a matter of time before a revolution triggers class warfare forcing America to dump capitalism, eliminate our corrupt system of lobbying, come up with a new workable form of government, and create a new economy without a banking system ruled by Wall Street. Read 'America on the brink of a Second Revolution.' …’ ]As the Federal Reserve considers what steps it might take to try to boost growth, attention has focused on whether the Fed might buy an enormous quantity of bonds to flood the economy with some specific amount of money.

IMF official by day, author of financial thriller by night (Washington Post) [ Because you can’t make this stuff up, if he sticks to reality (truth stranger than fiction), ie., magnitude of the extant fraud, debacle, etc., it will be a doozy! ]The chief of the agency's policy review division has written a book that's not for the faint of heart.

Afghanistan: U.S. and Afghans at odds over Kabul Bank reform (Washington Post) [ Wow! Given defacto bankrupt america’s continued and covered-up financial debacle, any Afghan resistance to the american model / modus operandi is tantamount to ‘proof of life (rationality)’. ]

Firms use record piles of cash to buy back stock, not create jobs (Washington Post) [ And just when we thought that fake government pre-election labor reports (expected by fraudulent wallstreet, ie., 10-8-10, etc.) was the only market frothing fixed game in town. ] Plus these companies are buying back their stock in droves.

White House says Obama will not sign foreclosure bill [ Oooooh, whoops … Sounds like a plan!] Consumer advocates and state officials argue legislation would make it difficult for homeowners to challenge documents prepared in other states. [When talking about the pervasively corrupt american legal / judicial system, you’re truly talking about tips of the iceberg! Judges rule without title, lenders can't foreclose (Washington Post) [ Rules of law? I didn’t think they cared. That’s certainly the direct experience I’ve had with the pervasively corrupt american legal / judicial system (along with the other two branches of the u.s. government and defact bankrupt america generally). Court decisions could call into doubt the ownership of mortgages, raising urgent challenges for both the real estate market, wider financial system. Connecticut, California join probe of Ally (Washington Post) [I’d be much more impressed if they initiated a probe of more readily discernible criminal offenses in violation of the RICO Act http://albertpeia.com Frauds/Liars (sic-lawyers)Covering Up for Other Frauds/Liars (sic-lawyers). In Productive Societies as China, Japan, etc., Fraudulent Liars (sic-lawyers) and the Fraudulent u.s. System They're a Part of Are Unheard Of/Non-existent. List of Files Regarding Filed Attorney Grievance Against Fraud coan et als Or Here For A Clearer View Of Filed Grievance Complaint, Response, Exhibits, and Related RICO Filings Note the Committee of Frauds/Liars (sic-lawyers). Included are DOJ Rep., State Court Rep., State Atty. General Office Rep., and even a Vegetable Garden yale law prof who probably never practiced law in his life. How Pathetic! http://albertpeia.com/fbiofficela91310 ] Justice: FBI improperly opened probes (Washington Post) [ I just hope they’re as zealous (in probing readily discernible crime) with regard to my RICO matters and the corruption in the (judicial / legal) process since, in the final analysis, it will have been the corruption within that will have brought the nation down irrevocably and totally.

October 5, 2010 (*see infra)

Steven M. Martinez, Assistant Director In Charge
Federal Bureau of Investigation, USDOJ
11000 Wilshire Blvd., Suite 1700

Los Angeles, CA 90024

Dear Sir:

I enclose herewith 3 copies of the within DVD rom autorun disk (which will open in your computer’s browser) as per your office’s request as made this day (the disk and contents have been scanned by Avast, McAfee, and Norton which I’ve installed on my computer to prevent viral attacks / infection and are without threat). I also include 1 copy of the DVD as filed with the subject court as referenced therein (which files are also included on the aforesaid 3 disks in a separate folder named ‘112208opocoan’). The (civil) RICO action (as you’re aware, the RICO Act is a criminal statute which provides a civil remedy, including treble damages and attorney fees, as an incentive for private prosecution of said claims probably owing to the fact that the USDOJ seems somewhat overwhelmed and in need of such assistance given the seriousness and prevalence of said violations of law which have a corrupting influence on the process, and which corruption is pervasive). A grievance complaint against Coan was also filed concurrently with the subject action and held in abeyance pending resolution of the action which was illegally dismissed without any supporting law and in contravention of the Order of The Honorable Robert N. Chatigny, Chief Judge, USDC, District Connecticut. The files below the horizontal rule are the referenced documents as filed. (Owing to the damage to the financial interests of both the U.S. and the District of Congresswoman Roybal-Allard, viz., Los Angeles, the Qui Tam provisions of the Federal False Claims Act probably would apply and I would absent resolution seek to refer the within to a firm with expertise in that area of the law with which I am not familiar).

The document in 5 pages under penalty of perjury I was asked to forward to the FBI office in New Haven is probably the best and most concise summary of the case RICO Summary to FBI Under Penalty of Perjury at Their Request (5 pages) [ ricosummarytoFBIunderpenaltyofperjury.pdf ].

The correspondence I received from the Congresswoman by way of email attachment (apparent but typical problem with my mail) along with my response thereto is included on the 3 disks as fbicorrespondencereyes.htm . With regard to the calls to the FBI’s LA and New Haven, CT offices: There was one call to the LA office and I was referred to the Long Beach, CA office where I personally met with FBI Agent Jeff Hayes to whom I gave probative evidentiary documents of the money laundering which he confirmed as indicative of same (he was transferred from said office within approximately a month of said meeting and his location was not disclosed to me upon inquiry). The matter was assigned to FBI Agent Ron Barndollar and we remained in touch for in excess of a decade until he abruptly retired (our last conversation prior to his retirement related to the case and parenthetically, Rudy Giuliani whose father I stated had been an enforcer for the mob to which he registered disbelief and requested I prove it, which I did – he served 12 years in prison, aggravated assault/manslaughter? – and no, there is no Chinese wall of separation – Andrew Maloney’s the one that prosecuted gotti).

In contradistinction to the statement in said correspondence, there is a plethora of information including evidence supporting the claims set forth in the RICO VERIFIED COMPLAINT (see infra). Such includes and as set forth in the case, inter alia,

A judgment had been entered in my favor in the case, United States District Court Case #3:93cv02065(AWT)(USDCJ Alvin Thompson), worth approximately now in excess of $300,000 remains unaccounted for and which could be used for payment to creditors, Los Angeles, etc..
Counsel Robert Sullivan on my behalf documented by way of certification upon investigation that Alan Shiff, USBCJ, had falsely stated a dismissal upon which false statement he predicated a retaliatory and spurious contempt proceeding against me causing substantial damage, and for which he sought Judicial Notice of those and related proceedings as did I in some of my filings.
The Order of Dismissal With Prejudice by Alan Shiff, USBCJ, owing to Defendant Coan’s failure to file anything whatsoever by the court’s deadline causing creditors and me substantial damages: [ Shiff Order of Dismissal With Prejudice on Coan’s Failure to File Page 1 Page 2 ]
Defendant Coan had filed an action against me to prevent me from suing him which necessitated me to fly to Connecticut for a hearing before The Honorable Robert N. Chatigny, Chief Judge, USDC, District of Connecticut, who denied Coan’s requested relief as to Coan but precluded my action against Shiff (although there is no immunity, judicial or otherwise, for criminal acts, ie., fraud connected with a case under Title 11, USC, etc.) . [ transcript in pertinent part - crossexamofcoanbypeia.pdf ]
Newly appointed judge, Maryanne Trump Barry, Donald Trump’s sister, was assigned the RICO case despite the conflict of interest in light of hundreds of thousands of dollars of illegal (drug) money being laundered through the Trump casinos by the RICO defendants, and despite my motion to recuse her which motion she heard herself and denied, and U.S. Trustee Hugh Leonard with whom I met personally refused to join or file a separate motion to recuse and not long thereafter left said office for private practice at Cole, Shotz, et als on retainer with the RICO defendants as his primary client.
Probative and evidentiary documents, affidavits, exhibits, including those turned over to FBI Agent Jeff Hayes in Long Beach, CA, had been given to Assistant U.S. Attorney Jonathan Lacey with whom I met personally at the U.S. Attorney’s Office in Newark, N.J., at which time Samuel Alito was U.S. Attorney, and went over said documents and their probative value with him. Within approximately a month thereafter upon inquiry I was told that Jonathon Lacey was no longer with the office, that the file/documents could not be located, and that there was no further information available concerning contacting him or his location. I thereupon delivered by hand, copies of said documents to the office of then U.S. Attorney Alito, addressed to him, with assurance they would go directly to him. In addition to being inept [ I looked in on the one mob case he had brought, bungled, lost (accidently on purpose?) since I was suing some mob-connected under RICO and the court (I had known / previously met outside of court the judge Ackerman through a client) was absolute bedlam and a total joke since incompetent corrupt Alito brought in all 20 mob defendants (rather than prosecute one or a few to flip them first) who feigning illness had beds/cots in the courtroom along with their moans during testimony and had the jury in stitches. As much as I hate the mob, it truly was funny, if not so tragic.], Alito is also corrupt (and maybe corrupt because he is inept). After a reasonable (but still rather short) time I called to determine the status and was told that Alito was no longer with the Office of the U.S. Attorney, that he was (appointed) a federal judge, and that neither the documents nor any file or record of same could be located. Alito did parley the same / cover-up into quid pro quo direct lifetime appointment to the Court of Appeals, 3^rd circuit, despite the absence of judicial experience or successful tenure as U.S. Attorney (Maryanne Trump Barry as well). This is the same Sam Alito that now sits on the purported highest court in the land. The real application of the illegal rule ‘don’t ask, don’t tell’.

There is applicable insurance / surety coverage and neither LA, nor creditors, nor I should continue to have been damaged by this brazened corrupt and illegal scenario, which should be resolved in accordance with the meaningful rules of law apposite thereto.

Sincerely,

Albert L. Peia

611 E. 5^th Street, #404

Los Angeles, CA 90013

(213) ******* (cell phone)

(213) 622-3745 (listed land line but there are unresolved problems with the line, computer connection may be the reason but I hesitate to chance greater non-performance / worsening by their ‘fix’ so cell phone best for contact).

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*The foregoing and as indicated therein was previously send 9-14-10 but delivery confirmation was flawed as set forth below and my inquiries to the u.s. postal service rebuffed (I believe tampered with inasmuch as your office could not locate same). This cover letter (9-13-10) is on the 3 disks with navigable hyperlinks to the subject files for ease of reference, including the files in the RICO action as indicated.

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Your item was delivered at 10:14 am on September 15, 2010 in LOS ANGELES, CA 90024.

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Bullet Delivered, September 15, 2010, 10:14 am, LOS ANGELES, CA 90024

Bullet Arrival at Post Office, September 15, 2010, 4:12 am, LOS ANGELES, CA 90024

Bullet Processed through Sort Facility, September 14, 2010, 8:29 pm, LOS ANGELES, CA 90052

Bullet Acceptance, September 14, 2010, 4:04 pm, LOS ANGELES, CA 90017

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Sent Postage Prepaid: United States Mail - VIA Priority Mail, Delivery Confirmation and VIA Certified Mail this 5th day of October, 2010.

Signed: ___________________________________