October 18, 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 ]

REMINDER: There's Been A Huge Global Market Boom, And There Is Plenty Of Room To Fall Weisenthal, On Monday October 18, 2010, 5:17 pm EDT ‘We discussed this this morning, but in light of the mediocre Apple and IBM earnings it's worth revisiting this. The markets have been on an epic run all around the world, with all kinds of "risk" assets from stocks, to commodities, to emerging market bonds soaring towards nosebleed heights. And at least for the moment, it seems the air is about to let out as stocks are tanking after hours. Bear in mind too that in the conventional sense, both IBM and Apple reported "good" earnings, but with the selloff in full effect, investors will start to ask: what other "good" news is priced in? The election? QE? Look out below.’

S&P 500 index futures dip after Apple, IBM (Reuters) - 1 hour ago Reuters - S&P 500 index futures slipped lower on Monday after quarterly results from Apple Inc and IBM . NEW YORK (Reuters) – S&P 500 index futures slipped lower on Monday after quarterly results from Apple Inc (AAPL.O) and IBM (IBM.N). S&P 500 futures dipped 3.6 points, Dow Jones industrial average futures fell 17 points, and Nasdaq 100 futures shed 17 points. Apple shares were halted in extended trade and IBM shares fell 3.6 percent to $137.70. [ And don’t forget, that includes the ongoing currency manipulation / translation to inflate earnings per share (and artificially lower p/e multiples).]

Why There Is Currently a Sizeable Air Pocket Beneath Risk Assets Roche / Pragmatic Capitalism ’…Currently, I view the market as excessively risky from the long side (which is why I am net short for the first time since before the flash crash earlier this year). Aside from several exogenous risks (the foreclosure mess, a strong Euro sparking sovereign debt fears in Europe, currency war, etc) there is also the risk that all three of the themes above disappoint investors in the coming weeks as a massive “sell the news event unfolds” in the final weeks of October and in early November. On a slightly different note – I ran some numbers over the weekend and pulled up a few factoids that readers might find interesting with regards to the indicator I use called “quantified disequilibrium”. As I’ve previously mentioned, this program quantifies what I call the disequilibrium in the market – it quantifies hundreds of inputs to output a real-time measurable risk level. Using this algorithm without leverage in a long/short 100% equity strategy has generated a 25.67% annualized return since inception (January 2006) with a Sharpe ratio of 2.29 and a max monthly drawdown of -5.22% in one of the most challenging market environments ever. The risk component has only been at current levels (or higher) twice in the last 5 years. The first instance was September 24th, 2007 at S&P 1526. Just shy of the all-time high and prior to a multi-month decline of almost 20%. The second instance was January 5th, 2009 at S&P 890. We had rallied 11% off the October 2008 lows and we all know what happened next. The market took a nose dive down to the March 2009 lows for an epic two month collapse of 25%…’

And Now, Here's The First 11 State Pensions Funds That Will Run Out Of Money Provided by The Business Insider, October, 18, 2010:Here's a shocker: The most immediate state pension crises aren't in New York or California. They're in Middle America.When it comes to state pensions in the most trouble, do places like New Hampshire come to mind? Probably not, unless you live there, and maybe not even then. After all, it makes sense that the biggest, most populous members of the union, where budget follies are fairly common, would be facing the most urgently needed fixes. The truth is considerably different. The Granite State claims the No. 11 slot, and it's not the only unexpected name facing pension woes. Hawaii, Kansas and others made their way on to the list. Now, these pension plans aren't going to be obliterated tomorrow -- New Hampshire, for instance, is estimated to see its plan run out of money in 2022, so they've got 12 years to rectify the situation. For some other states, the matter is more pressing, and no more so than for the Land of Lincoln.Illinois is just 8 years away from exhausting its pension fund and creating a yearly $14 billion hole, according to data from Joshua Ruah an associate professor of finance at the Kellogg School of Management at Northwestern University.That's a projected 32 percent of the state's revenue going to fill a pension hole. Every year.Indiana, Louisiana, Oklahoma and Colorado are among the next pension funds to fall. The rest of the union is just around the corner.But wait. Just to make sure the list is not a complete surprise, know that the New York City suburbs of Connecticut and New Jersey made it on board. They have until 2019 to sort it out. And Now, 11 State Pension Funds That May Run of Out Money

#1 Illinois

Year pension fund runs out: 2018

Bill in the following year: $13.6 billion

Share of state revenue: 32%

#2 Connecticut

Year pension fund runs out: 2019

Bill in the following year: $4.9 billion

Share of state revenue: 27%

#3 Indiana

Year pension fund runs out: 2019

Bill in the following year: $3.6 billion

Share of state revenue: 17%

#4 New Jersey

Year pension fund runs out: 2019

Bill in the following year: $14.4 billion

Share of state revenue: 34%

#5 Hawaii

Year pension fund runs out: 2020

Bill in the following year: $1.7 billion

Share of state revenue: 24%

#6 Louisiana

Year pension fund runs out: 2020

Bill in the following year: $4.3 billion

Share of state revenue: 27%

#7 Oklahoma

Year pension fund runs out: 2020

Bill in the following year: $3.7 billion

Share of state revenue: 30%

#8 Colorado

Year pension fund runs out: 2022

Bill in the following year: $7.8 billion

Share of state revenue: 54%

#9 Kansas

Year pension fund runs out: 2022

Bill in the following year: $2.5 billion

Share of state revenue: 23%

#10 Kentucky

Year pension fund runs out: 2022

Bill in the following year: $5.3 billion

Share of state revenue: 35%

#11 New Hampshire

Year pension fund runs out: 2022

Bill in the following year: $1.0 billion
Share of state revenue: 30%

Countrywide's Mozilo will settle fraud claims (Washington Post) [ This should be policy across the board, particularly on the criminal prosecution side, for which long overdue fines and disgorgement will substantially eat into the record deficits of defacto bankrupt america. 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 firm's former CEO will pay millions to settle allegations that he misled investors.

This is an especially great opportunity to sell / take profits! Suckers’ rally to keep suckers suckered (easy for the wall street frauds to do with just a mouse click / push of the button). Keep in mind, the totally mindless blather from the ‘cottage industries’ of and fraudulent wall street itself in talking up lower P/E multiples when the same is a direct result of the debasement of the dollar and the consequent manipulation / translation (not real, see Davis, infra) which preceded the financial crisis / last crash. The unemployment, trade, deficit, etc., numbers again came in decidedly worse than expected along with other negative data (and in the ‘wrong direction’, that spin accorded ‘down but not as bad as before’ b*** s*** ) yet the market has rallied like no tomorrow with used home foreclosure / distressed sales, though abated owing to ‘foreclosuregate’, the other ‘heralded’ good news. Moreover, the dumbo lemmings of Europe have jumped on the fraudulent defacto bankrupt american crazy train propelled to the precipice also as if no tomorrow. This is about keeping the suckers sucked in with the help of a market-frothing pre-election debased dollar for favorable currency translation and paper (but not real when measured in, ie., gold, etc.) profits which preceded the last crisis, inflating a bubble as in the last crisis to facilitate the churn-and-earn, particularly with computerized (and high frequency) trades and which commissions they’ll get again on the way down. There is nothing to support these overbought stock prices, fundamentally or otherwise. These are desperate criminals ‘at work’. Even wall street shill, the senile Buffett is saying we’re still in a recession (depression). Buffett: We're Still in a Recession [ Wow! A moment of lucidity from senile Buffet which belies his prior ‘rosy wall street shill talk’, but his greater candor is welcomed nonetheless although the ‘d’ (for depression) word is more appropriate and accurate.] Roche ‘Warren Buffett disagrees with the NBER. He says we’re still in a recession and likely to remain in a recession for quite a while. These comments are far more tempered than the ones that were published last week. Of course, my favorite part in this clip is where he says the U.S. government did the right thing in responding to the crisis. They certainly did the right thing for Berkshire Hathaway (BRK.A) shareholders. Whether or not they did the right thing for America is a whole other story…’ [ And, of course we now know that it wasn’t the right thing for america … The question inevitably becomes, ‘Who’s manipulating who, what, and why? After all, we know defacto bankrupt america’s pervasively corrupt! ]

Bank stocks fall again amid fears about mortgage issuers (Washington Post) [ If that was all the banks had to worry about, they’d be sittin’ pretty … well, still pretty bad, but the reality in light of the trillions of ‘mark to anything’ but worthless toxic assets/securities/paper from the last / ongoing fraud makes this additional nail in their coffins nothing short of disaster! ]The price of Bank of America, the nation's largest bank, fell 9.1 percent over the past week to close at a low for the year, as analysts said it may have set aside aside too little money to meet coming costs.

Feds To Push Inflation As Economic Fix [ This is really quite incredible … and, you can’t make this stuff up … they haven’t the slightest idea what they’re doing (except as to purposeful complicity in helping the continued wall street frauds) … not even a clue! ] Two top Federal Reserve officials argued for further aggressive action by the central bank, with one saying the economy needs “much more” help and the other pointing to Japan’s painful lessons.

Broke and Jobless: 85% of College Grads Moving Home Mac Slavo | In yet another sign of the times, 85% of college graduates surveyed have reported that they will be moving home after they get their degrees.

US Financial Imperialism: Why the IMF Meetings Failed Michael Hudson | The outflow of dollar credit into foreign markets in pursuit of this financial strategy has bid up asset prices and foreign currencies, enabling speculators to pay off their U.S. positions in cheaper dollars.

Will the New Debt Commission Back a VAT? Fox Business | Some fear they smell a VAT, akin to a new national sales tax within the federal debt commission’s upcoming report on how to cut the U.S. deficit.

Is The Economy Recovering, Or Is Bernanke Blowing The Mother Of All Global Bubbles? If you haven’t been paying attention, or are only paying attention to the US market you may have missed something: markets are screaming higher all over the world, with many risk assets hitting all-time historical highs.

Investors bet Fed action will bring inflation US inflation expectations have jumped sharply in the past two weeks as investors bet that the Federal Reserve’s efforts to boost the economy by pumping in more money will succeed.

The Number One U.S. Export To China: Waste Paper And Scrap Metal Historians tell us that by the very end of the Roman Empire, goods were pouring into Rome from all over the known world, but about the only thing being sent out of Rome was human waste and garbage.

The Last Resort Of A Dying Economic System: From “Beggar Thy Neighbor” To “Beggar Thyself” The phrase of the week comes from The Privateer’s Bill Buckler, who has coined the one term that best describes the lunacy that has gripped the world: “Beggar Thyself.”

ECB: No Really, We’re Going To Keep Printing Euros Like Crazy, Too! Euro leaders continue to fret that they’re losing the currency war — with the euro trading still at around $1.40 — and are desperate to convince the world that they’re happy to devalue their currency like everyone else.

Is The Congress About To Pass A Bailout, And Save The Banks From The Mortgage-Putback Crisis? It was a depressingly news-filled week for bankers on the mortgage front.

Treasury 30-Year Yields Rise Most in 14 Months on Prospects for Inflation Treasury 30-year bonds tumbled, pushing yields to the biggest weekly increase since August 2009, on speculation that Federal Reserve efforts to spur the economy will reignite inflation.

Gerald Celente: We’re Living on Borrowed Time Gerald Celente has been forecasting trends worldwide since 1980, delivering concise, deployable success strategies and publishing the Trends Journal.

(10-18-10) Dow 11,143 +80 Nasdaq 2,480 +11 S&P 500 1,184 +8 [CLOSE- OIL $83.08 (-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 $1,372 (+24% for year 2009) / SILVER $24.41 (+47% for year 2009) PLATINUM $1,693 (+56% for year 2009) / DOLLAR= .71 EURO, 81 YEN, .62 POUND STERLING, ETC. (How low can you go - LOWER)/ 10 YR NOTE YIELD 2.49% …..… 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

Exclusive Paul Craig Roberts Interview: Decline of The American Empire Prisonplanet.TV | A special never before seen interview with economic expert Paul Craig Roberts.

Americans Buying Guns In Preparation For Civil Unrest Paul Joseph Watson | Interest in purchasing silver and food stamps also skyrockets in anticipation of economic collapse.

The War On Terror Paul Craig Roberts | Does anyone remember the “cakewalk war” that would last six weeks, cost $50-$60 billion, and be paid for out of Iraqi oil revenues?

Enemy Of The State The Alex Jones Channel | The latest documentary from William Lewis and Gary Franchi further exposes the secret agenda of FEMA camps and the specter of martial law which looms over us all.

Tea Party Express Senate Candidate Has Critic Muzzled Kurt Nimmo | Security guards attached to Joe Miller in Alaska handcuff journalist, prevent him from asking question at public event.

Scientific American: Kill More Babies To Save Earth Paul Joseph Watson | Eugenicists push discredited overpopulation myth in pursuit of elite agenda to reduce global living standards.

Doomsday Denial: Collapse 2.0 looms as UK calm before storm RT | The UK is bracing itself to hear about public spending cuts worth tens of billions of pounds.

Merkel says German multi-cultural society has failed AFP | Germany’s attempt to create a multi-cultural society has failed completely, Chancellor Angela Merkel said at the weekend, calling on the country’s immigrants to learn German and adopt Christian values.

G20 ‘Officer Bubbles’ sues YouTube and users over cartoons Toronto Star | Const. Adam Josephs seeks to compel the Google-owned YouTube to reveal the identity of the person who created and posted the videos as well as any information it has on the 24 other users who made allegedly defamatory remarks.

Americans Buying Guns In Preparation For Civil Unrest Americans are acquiring guns, silver and going on food stamps at record levels in reaction to the crumbling economy, trends indicative of a fearful public who are struggling financially and preparing for potential mass civil unrest in the aftermath of a total economic collapse.

Defiant Rand Paul Slams “Disgraceful” Opponent In Kentucky Debate Would be Kentucky Senator Rand Paul refused to shake the hand of his opponent last night in response to a new campaign ad that Democrat Jack Conway is running, repeating already thoroughly debunked lies in an attempt to smear the Tea Party favourite.

W.Va. Sen candidate questions 911 account “The two chairs of the commission say clearly that they were obstructed, that there is more to be learned . . . and much more damning things than I am saying right now,” Johnson said.

Mumbai Terror Suspect Worked for U.S. Government Last week U.S. officialdom declared there was still a threat from unsubstantiated terrorists in Europe while New York City police conducted a drill simulating a Mumbai-style attack on civilians in Manhattan’s financial district.

No Wikileaks release Monday: spokesman An Icelandic spokesman for WikiLeaks said the whistleblowing website would not publish some 400,000 secret military reports on the Iraq war on Monday, but would make new documents public “very soon.”

‘US fearing exposure of Iraq war truth’ As the whistleblower website WikiLeaks plans to release 400,000 more classified documents on the US war in Iraq, an activist says Washington fears that the truth may eventually see the light of day.

77,000 Iraqis killed from 2004 to August 2008, U.S. military says (Washington Post) [ And you can take that to the fraudulent american bank … riiiiight! … Come on … americans lie about everything and certainly this … A conservative estimate from AP through only 2007: Study: 151,000 Iraqis died in conflict’s violence Surveyors face danger to count casualties from 2003 to 2006 The Associated Press - updated 1/9/2008 7:15:50 PM ET 2008-01-10T00:15:50 About 151,000 Iraqis died from violence in the first three years after the United States invaded, concludes the best effort yet to count deaths — one that still may not settle the fierce debate over the war's true toll on civilians and others … americans are just lying war criminal american scum. ]

Exclusive Interview: Lord Monckton Talks About NWO Master Plan Prisonplanet.TV | Special interiview with Lord Christopher Monckton about Al Gore’s climate gate hoax, and the hidden Nwo objective behind it all.

Obama-Goldman Sachs Administration Sides with Banks on Foreclosure Moratorium Kurt Nimmo | Bring on the robo-signers.

Zardari says he has proof of US terror against Paksitan Pakistan Patriot | Pakistani sycophantic secularists are in cahoots with the war mongering Neocons and Neolibs in the US and both blame the local Pakistanis for terror attacks.

Gen. Hugh Shelton: Clinton Official Suggested Letting U.S. Plane Be Shot Down To Provoke War With Iraq In the publicity sheet that St. Martin’s Press has been sending out to spur interest in General Hugh Shelton’s new memoir, Without Hesitation: The Odyssey of an American Warrior, the last highlight is a doozy: “A high-ranking cabinet member suggests intentionally flying an American airplane on a low pass over Baghdad so as to guarantee it will be shot down, thus creating a natural excuse to reltaliate and go to war.”

WikiLeaks and 9/11: What if? Frustrated investigators might have chosen to leak information that their superiors bottled up, perhaps averting the terrorism attacks.

Support For War In Afghanistan At All Time Low American support for the war in Afghanistan has never been lower, according to the latest CNN polling. The low numbers just the latest figure in the complex math being calculated to determine how the US should proceed in the ten year war.

Drudgereport: HAS THE FED RUN OUT OF IDEAS? [ Quite some time ago, actually. ]
THE 'INFLATION' OPTION...
Dollar Declines for Fifth Week...
Support for Afghanistan war at all-time low...
17 SOLDIERS KILLED IN PAST 3 DAYS...
Limbaugh: Obama looks 'demonic' in new photos … and limbaugh knows demonic, himself and relative wobama ... [Obama Distant Cousins with Palin, Limbaugh, Bush | CNSnews.com Obama Distant Cousins with Palin, Limbaugh, Bush. Obama's Related to Palin. Wednesday, October 13, 2010. By Jocelyn Noveck, Associated Press ... www.cnsnews.com/news/.../obama-distant-cousins-palin-limbaugh-bushes (wobama, palin, limbaugh, bush distant cousins … I knew there were some dark secrets there … hillbilly heroin, etc.. – Wow! Talk about the nation-declining dangers of inbreeding! Poor defacto bankrupt, pervasively corrupt america never had a chance! ) ]
ABCNEWS: 63 Dem House Seats in 'Serious Danger'...
Barone: Dems find careers threatened by ObamaCare votes...
GALLUP: Unemployment at 10.0% in Mid-October...

Thrill Ride Thursday: Can the Dollar Drop Fast Enough to Keep the Markets Up? Davis [ The following from Davis is really the key to understanding the scam / fraud which also preceded the ‘financial crisis’ (which continues) and consequent market crash ]: ‘…our market "rally" is ALL about the declining dollar. We are not used to inflation in this country - it hasn’t been much of an issue for the past generation but that’s what we’re seeing here as we are experiencing lower wages, lower demand and flat prices - THAT IS INFLATION or, as we used to say in the 70s - STAGFLATION … In fact, I had been getting bearish because I thought corporate profits weren’t going to be so good this quarter, what with the lack of sales and all, but I was wrong. I was wrong because corporate profits are priced in dollars and dollars are worth 10% less than they were the last time corporations reported. So silly me - all profits are inflated by 10% and that 10% is the E that gets divided from the P and gives us a much better price/multiple to hang our hats on and that gets investors to BUYBUYBUY and, as I said yesterday - they may as well because Lord knows it’s utter foolishness to leave your money in a bank and just watch it lose 2.5% of its buying power EVERY MONTH. Isn’t the declining dollar good for exports? That’s what they keep telling us, isn’t it? Well, it’s not. What do you think - that AAPL is making iPhones in China and then shipping them to Cupertino and then shipping them back to Hong Kong and Tokyo to sell? No, that would be silly. AAPL is a big multi-national corporation that has an office in Cupertino but manufactures almost everything overseas. And why wouldn’t they? Despite a 20% pay raise at FoxConn (and it’s nice to have a 3rd party employ 100,000 workers for you so you can still claim your 34,000 person work-force is mainly American) Apple’s labor cost of producing an iPad only rose from 2.3% to 3% but that’s in Yuan, which have declined 12.5% with the dollar since May so even-Steven for AAPL! Oh yes, exports (sorry, I went off track): So, exports were up just 0.2% as the dollar crashed. Why? Because we don’t make anything here - there’s nothing to export. As Eddy Elfenbein points out in his excellent "24 Statistics about the US Economy that are Almost too Embarrassing to Admit," despite inventing the television in 1927 (Philo Farnsworth for you trivia buffs), NOT ONE (ZERO) of the 211 MILLION televisions sold in the World in 2009 was made in America. In fact, overall manufacturing is down 60% in the past 40 years and the US has lost over 30M factory jobs since Al Gore lost his. Only 12M Americans, not even 10% of our workforce, now work in Manufacturing so EVEN IF a 10% decline in the dollar boosted manufacturing by 10% and EVEN IF making 10% more stuff got US Corporations to hire 10% more staff - that would add just 1.2M workers. That’s not very likely when FoxConn is happy to ramp up with workers who make less money per day than a US worker pays for lunch at a roach coach…’

Fed preparing for new action Bernanke: Fed prepared to act to boost economy (Washington Post) [ Yes … I do believe they’re goin’ to act … they call it a soft shoe … you know, song and dance … they haven’t the slightest idea what they’re doing other than to print more Weimar fiat currency debasing same for a favorable (but not real as measured, ie., against gold, etc.) currency translation inflating profits, inflating a bubble for the wall street frauds to commission and sell into; namely, crash as in prior crashes preceded by the same or similar manipulations. Abolish the fed! Throw the frauds in jail! ]

In foreclosure process, speed equaled money (Washington Post) [ Yeah … we all know how effective bank speed (fraud) strategies have been … in losing money … equaled money lost … the sorry story of a defacto bankrupt nation, fraught with fraud and b*** s*** , in intractable decline ]Banks seized millions of homes through a mass production system in which firms were paid to move cases quickly through the pipeline.

The Root of the Problem The Inflation Trader [ I think it unfortunate that most fail to properly weight in their analysis the irrevocable structural shift that has occurred in the defacto bankrupt u.s. and which cannot be undone. The ‘powers that be’ literally gave up (sold out) the american store (ie., technology transfers for money, protracted treasury depleting and geopolitically unwise wars, perma-frauds on wall street without prosecution, pervasive corruption at all levels including all three branches of the u.s. government, etc., covered elsewhere on this site.) Then of course there’s the insurmountable debt and interest thereon which is now eating into real (not fake / falsified ) GDP along with other unserviceable promises exacerbating the magnitude of the nations defacto insolvency. ] See infra.

Recovery Concerns Resurface Mody / Bondsquawk ‘Stocks declined as increased jobless numbers and a widened trade deficit spiked concerns about the recovery. Investor’s confidence in betting that the Fed will take action increased after prices of wholesale goods rose at a very sluggish rate in September. Treasuries continued to slide and yields ended higher across the spectrum. Economic Data Initial jobless in the week ended Oct 9 increased by 13,000 to 462K after the claims filed for the previous week were revised upwards by 4000. Continuous claims declined to the lowest level in a year, now at 4399K. The trade deficit for August widened more than forecast to $46.3 billion as cheaper import prices and increased demand for foreign autos and capital equipment overshadowed the gains by exports. Exports gained 0.2% compared to 2% in July, surpassed by a 2.1% increase in imports in August. Goods and services imported grew by 2.4% and 0.5% respectively, and while exports of goods remained flat, services exported gained 0.7%. The trade deficit can be narrowed only when the U.S., whose economy is mainly service oriented, starts meeting its own demands for goods and increases export of services. In other reports, the wholesale price of goods excluding food and energy showed a sluggish 0.1% growth for a second month as inflationary pressure decreases. The Producer Price Index excluding food and energy prices grew by merely 0.1% in September, reported the Labor Department. The Fed expressed in its last meeting that is will aim its monetary policy at, among other things, increasing inflation expectations. The economy seems to be in a lull, where neither inflationary nor deflationary pressures are strong enough to cause any change in its current state. Interest Rates Treasuries continued to slide on increased supply, pushing yields higher across the curve (click on chart to enlarge). Long termed Treasuries fell the most as seen in the 10 bp increase In the yield on the 30-Yr, which ended at 3.92%. The benchmark bond fell as its yield pushed 7 bp higher to 2.51%. The belly of the curve rose as the 5-Yr ended 7 bp higher at 1.18%. The 2-Yr yield fell 2 bp to .38% to push the front end of the curve slightly higher. (chart ) Inflation expectations, as indicated by the yield differential between the 10-Yr Treasury and an equal maturity inflation indexed bond (TIPS), widened 8 bp to 2.14%. (click on chart to enlarge) (chart ) Yields were mixed across the Atlantic. France’s benchmark 5-Y bond ended flat at 1.65%. Germany’s 5-Yr bonds slipped slightly as its yield ended a basis point higher at 1.43%. Yields were mixed among the peripherals nations. Yield on Portugal’s benchmark bond tightened 10 bp to 4.65%. Ireland’s 5-Yr bond yield gained and pushed its yield 21 bp lower at 4.91%. Greece bond ended its rally as its yield gained 24 bp to 8.78%. Spain’s 5-Yr bond cut its losses from Wednesday as its yield slipped 4 bp to 2.91%. Across The Capital Markets Stocks slipped on poor economic data. The S&P retreated 0.45 to 1173.81. NASDAQ ended 0.3% lower at 2435.38. The VIX index gained higher to 19.88. The DXY dollar index weakened further to 76.542. Euro advanced against the dollar to 1.4084. The cable (GBP/USD) gained to 1.6011. Gold continued to scale new heights as it ended at 1381.15.’

Why I'm Concerned About a Near Term Pullback in Stock Prices Soos Global Capitalist [ The following is coming from a market optimist who talks earnings but fails to account for quality as Davis infra; that of itself means he’s not the brightest bulb on the planet, but he at least recognizes the lack of rationality here which, by the way, preceded the last several crashes. ] ‘John Lipsky, the current First Deputy Managing Director of the IMF, taught me something many years ago when we were colleagues at Salomon Brothers in a conversation then about various countries in Europe that were part of the “Euro Convergence” process. Regarding the extremely high marginal tax rates at that time in some of the socialist economies, for example in Sweden where I believe it was in the 80% range, I recall discussing the seeming disincentive for people to work when only 20 cents on the ‘dollar’ would stay in their pocket while the rest would go to the government. I suggested that such a situation would likely lead to high levels of unemployment….to which I recall John adding that not only could it lead to higher levels of unemployment currently, but that the longer people stay unemployed the more unemployable they become due to lost job skills, lack of training for new types of work and the like - a potentially economically crippling process known as “hysteresis”. That conversation parachuted back into my mind in recent days, partly due to the recent awful Non-Farm Payroll data, and partly in reaction to the ongoing stratospheric levels of Jobless Claims and related unemployment numbers. But beyond that, it’s also partly attributable to some considerations I've had about the overall market activity which has been largely euphoric of late based on hopes for Fed QE2, lower interest rates, more economic growth, weaker USD and higher commodity prices. Specifically, while I have been, and remain, optimistic on equities for medium and longer horizon portfolios, largely driven by my view of global economic growth in emerged and emerging countries around the world especially in the context of infrastructure build up, I have become much more cautious in putting additional cash to work, and in fact am concerned near term about a meaningful pullback in stock prices. Why? For one, increased global market risk and uncertainty. As I wrote last week in “Positioning for the Week Ahead: Navigating the Risks and Opportunities in Choppy Market Waters”, the lack of a globally integrated response to the quickly developing global ‘currency war’ presents the markets with, if nothing else, a significant increase in risk…..risk of unilateral action by countries in defense of their economies a la:

· Japan’s intervention several weeks ago to devalue the Yen and last week’s announcement of lower rates and of a ‘QE’ type fund, and

· Korea’s inaction this week by not hiking rates despite inflationary signs thereby choosing to accept a bit of inflation rather than fight it with higher rates which would likely strengthen their currency and hurt exports, and

· the US's Fed whose minutes from the September meeting that we got a glimpse of this week clearly showed the Fed team standing on the dock ready to christen the QE2 as it’s about to set sail.

Second, my perception that markets have allowed corporate earnings to provide a disguising shadow on the underlying economic weakness that prevails in the US. With little in the way of new economic data this week, most market participants have been rightfully focused on the earnings parade….and some parade it’s been. From Alcoa (AA), to Intel (INTC), to CSX, the news both in the rearview mirror and ahead through the windshield has been quite good. And that’s perhaps one of the strongest supportive factoids for my still cautiously, patient optimism. But when one considers the depth and breadth of the US economic slump, and when one contemplates the risks of “hysteresis” despite the remarkable flexibility of the US labor force, it doesn’t take long to aggressively question the soundness of the logic that has driven current market valuations, the arguably flawed causal relationship of QE>>lower interest rates>>more domestic economic growth>> higher equity prices. Hysteresis could put a serious kibosh on the economic growth link in that chain.

Third, next week’s data calendar will probably not provide much news on the economic front to alter the perception of just how deep of a hole the US economy is in. We do get Industrial Production and Capacity Utilization, which together is unlikely to show much improvement especially when you have a look at where we are now vs where we’re coming from:

(Source: ChartFacts.com) click to enlarge (chart) We’ll also get Housing Starts and Permits…and there too, look at the reality of what “improvement” has to mean in order to make a dent in what is an awful situation. (chart) Compounding that, of course, has been this week’s leap-frogging of the foreclosure fiasco to the front pages. Banks across the land have been freezing foreclosure proceedings, cries are being heard from DC and beyond for full blown investigations of banks that could result in large penalties, and one likely result could be a protracted major headwind for any improvement in the ailing housing industry. What now? In the context of open kimono, I’ve been adding equity exposure for the past several months with a “buy on dip” tactical approach, focusing on companies involved in global businesses with strong balance sheets, good dividend payouts, aggressive expansions into Emerging Markets countries, and in industries that are less likely to fall subject to intense new regulatory regimes. The higher markets have gone, though, the slower I’ve been to invest on any dips. And at these levels, I’m considering not just a pause in buying, but possibly some profit-taking with the goal of re-entering at lower levels. Bear in mind, this article is in no way meant to be considered personalized investment advice, but rather a thought-provoking note on issues that investors ought to consider in determining their own investment decisions that are uniquely appropriate for their financial profiles and risk tolerances. It’s meant to broaden the dialogue in terms of what should drive investment decisions beyond a simple reflex reaction to QE, whether it will or won’t happen, and in terms of including the broader landscape of US economic travails in addition to the global currency and policy tensions. In sum, despite my longer term optimism, current events have raised my “concern-ometer”. To put it colloquially, perhaps next to “Hysteresis” in the dictionary, a simplified, figurative definition could read: the needle that popped the bubble. Look for updates as things evolve.

Disclaimer: Soos Global Capital Advisors, LLC (“Soos Global”) is a New York state registered investment adviser located in Harrison, New York. Soos Global may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. The publication of Soos Global’s opinions on the Internet should not be construed by any consumer and/or prospective client as Soos Global’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by Soos Global with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of Soos Global, please contact the state securities regulators for those states in which Soos Global maintains a registration filing. A copy of Soos Global's current written disclosure statement discussing Soos Global’s business operations, services, and fees is available from Soos Global upon written request. Soos Global does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Soos Global's opinions or incorporated herein, and takes no responsibility therefor. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended or undertaken by Soos Global) made reference to directly or indirectly by Soos Global in its opinion, or indirectly via a link to an unaffiliated third party web site, will be profitable or equal the corresponding indicated performance level(s). Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client or prospective client’s investment portfolio. Historical performance results for investment indices and/or categories generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results. Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by Soos Global), will be profitable or equal any historical performance level(s). Disclosure: LONG: INTC, AA and various ETFs and stocks in S&P, Europe, Asia and Latin America.’

Market Outlook: Will This Party Continue? [ Here’s another weak sister who recognizes something amiss; viz., market iinsanity / scam / fraud, etc., as we’ve seen in prior manipulations preceding crashes. ] Ramsden ‘If the last month or so in the market has been something of a party, we would like, for good reason, the party to never end. If the last twelve months of the economy has been something of a revival, we want that revival, soft as it may be, to continue. The past week has shown the collective’s desire most clearly. While the Fed’s facial expressions have hinted at a willingness to keep the party going, the market has read into these messages and celebrated without pause. While the broader economy will manifest its disposition in upcoming reports, there are early glimpses offered by quarterly corporate earnings, now trickling in with intelligence from the trenches. The markets have taken in these reports, mixed them with the remembered images of a smiling Fed, and decided that the party continues. But the festivity seems based on hopes that are not altogether wholesome, and such parties all too often don’t end on a high note. That quantitative easing is on its own unlikely to provide a substantial economic boost has been reported and analyzed at length, including here, and the market probably recognizes the risk. No matter, more than in anticipation of economic lift the market seems to be trading on dollar devaluation, (also associated with QE2). We of course realize, but perhaps turn a blind eye to the fact that the Fed is not acting in isolation, and that a cheaper dollar necessarily must be cheap in relation to some other currency. Few if any central banks seem nowadays happy to sacrifice theirs for the benefit of ours, and a point will come when the declining dollar will no longer suffice to prop up stocks. When this occurs, we will likely become more focused on fundamentals, and coming on the heels of a “Great Recession” and two years of cost-cutting to the bone, such analysis should lead us to revenues head-on. With this in mind, we can have a peak at what may lie ahead for revenues and the economy, watching for signals that the early bellwethers of quarterly reporting season have to offer. Let’s take, for example, JP Morgan (JPM) (see earnings call transcript here): On a 15% revenue decline from a period that was to begin with not particularly stellar, the company managed to somehow still increase earnings and still beat analyst estimates. Cutting compensation helped, no doubt, but what helped even more was an (arbitrary) reduction of loan loss reserves… Pause to consider: Is it not a contradiction of perspectives when, on one hand, corporate revenues for a diversified financial organization decline substantially, while on the other hand, the company feels good enough about economic prospects to deem its loan portfolio quality substantially improved? Does anyone see the irony? It’s ironic, isn’t it? The broader market didn’t get it: Up strongly all day, post-announcement, while JP Morgan shares themselves traded down. Such bumping and grinding and disoriented stuttered-steps are bound to occur in the wee hours, when the group gets all pointless and sloppy. When a stock that is driving the market up concurrently moves in the opposite direction, the party is beginning to get unruly. Disclosure: No positions.

BUSINESS / NATIONAL / WORLD HEADLINES [ The news is rapidly unfolding in such a way as to merge all three. ]

Will the New Debt Commission Back a VAT? Fox Business | Some fear they smell a VAT, akin to a new national sales tax within the federal debt commission’s upcoming report on how to cut the U.S. deficit.

US Dollar Plunges, Gold Soars To New Record, Sold With $200+ Mark Ups Steve Watson | The US dollar plunged once again today as the currency continues to be battered by rumours that the Federal Reserve will announce plans to buy $1 trillion of government debt in the form of “monetary easing”.

Has Bernanke Gone Too Far? Nicholas Santiago | If the Federal Reserve Bank is going to keep printing money, traders will take advantage of the one asset class that will be directly affected. That asset class is the precious metals– GOLD, that is.

Peter Schiff: “Wall Street writes US law” Financial institutions on Wall Street are preparing to pay a shocking record $144 billion dollars in compensation & benefits according to the WSJ.

Russia to build nuclear power station in Venezuela Russia agreed on Friday to build Venezuela’s first nuclear power station after talks between Presidents Dmitry Medvedev and Hugo Chavez in the Kremlin.

France on brink of fuel shortage as strike bites: Sarkozy sends in police to break fuel blockade Strikes spread to all France’s refineries today, raising the prospect of a nationwide fuel shortage.

Trillions In Debt: Will The Real Cost Of ‘TARP’ Soar Into Quasrillions? The Troubled Asset Relief Program (TARP) ended in September. Since then, Washington has been trying to prove that bailing out Wall Street with taxpayers’ money prevented the total collapse of the economy.

Pachy stays It’s a win-win for us, with the climate guru staying in place as head of the IPCC.

Dollar fall sparks stability warnings The dollar tumbled against most major currencies on Thursday, prompting warnings that the weakness of the world’s reserve currency could destabilise the global economy and push other countries into retaliatory devaluations to underwrite their exports.

The Real Danger From the Foreclosure Crisis The foreclosure scandal will likely depress the real estate market, as clear title for millions of homeowners comes into question.

Deliberately Engineered Economic Collapse in USA Leading to Martial Law Phil Brennan | As the Crisis phase swings into full economic melt down, the US Military will take over more and more of the infrastructure as cities can no longer afford to employ staff.

Celente: Bankster Bailout Made Banks Bigger Infowars.com | The gap between the rich and the poor is the widest in the US over any industrialized nation, Gerald Celente points out.

CBS Report On 9/11: Ground Level Explosion Caused WTC To Collapse Paul Joseph Watson | Yet another video describing bombs in the World Trade Center suppressed by NIST.

New FDA regulations to destroy small organic farms David Gutierrez | A proposed law to bring farms more directly under FDA supervision could be the death of small organic

Irish Family Baby Returned Kurt Nimmo | Jonathan Irish appeared on the Alex Jones Show this evening and said his infant daughter, Cheyenne, was returned to him and his fiancé, Stephanie Taylor.

Nearly Half of All Americans Believe “The Federal Government Poses An Immediate Threat To The Rights And Freedoms Of Ordinary Citizens” Washington’s Blog | A new Gallup poll shows that a majority of Americans view the government as too powerful and obtrusive.

Drudge: First Lady Campaigns Inside Polling Place Drudge Report | First lady Michelle Obama appears to have violated Illinois law — when she engaged in political discussion at a polling place!

Judicial Watch: Pelosi took 85 trips on military aircraft, cost taxpayers $2.1 million Washington Examiner | Speaker of the House Nancy Pelosi and her family, staff took 85 tax-paid trips on military aircraft between March 2009 and June 2010, according to new documents uncovered by Judicial Watch.

WTC Collapse Under Fresh Scrutiny After Explosive Dust Samples Found Evidence indicating that the collapse of the World Trade Center was a controlled demolition has been propelled back under the national spotlight following the University of Copenhagen’s announcement that dust obtained from the rubble of the twin towers contains evidence of highly explosive material.

Full 27-Hour Money Bomb Special Now Available For Prison Planet.tv Subscribers! The jam-packed 27-hour Money Bomb special featuring never before seen interviews with Paul Craig Roberts, Katherine Austin Fitts, Lord Christopher Monckton, Sherri Tenpenny, Jeffrey Smith, Rev. Clenard Childress, Alan Watt, and others is now available for Prison Planet.tv subscribers for download.

Ventura In heated 9/11 Truth Debate: WTC “Didn’t Collapse, It Exploded” Former Governor of Minnesota, ex-Navy SEAL and retired pro-wrestler Jesse Ventura raised some important unanswered questions regarding the 9/11 attacks in a heated exchange on national television yesterday.

Ron Paul: Government Prevents the Correction On Thursday, Congressman Paul was interviewed on Fox Business concerning government spending and waste.

CBS Report On 9/11: Ground Level Explosion Caused WTC To Collapse Yet another 9/11 video that NIST tried to block from being released has emerged discussing bombs in the World Trade Center that led to the collapse of the twin towers, indicating once more that the organization attempted to preside over a cover-up to hide evidence of secondary explosives.

(10-15-10) Dow 11,062 -32 Nasdaq 2,468 +33 S&P 500 1,176 +2 [CLOSE- OIL $81.25 (-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 $1,379 (+24% for year 2009) / SILVER $24.29 (+47% for year 2009) PLATINUM $1,690 (+56% for year 2009) / DOLLAR= .71 EURO, 81 YEN, .62 POUND STERLING, ETC. (How low can you go - LOWER)/ 10 YR NOTE YIELD 2.58% …..… 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!

Drudgereport: Bernanke: Economy growing too slowly to reduce unemployment...
'Further Action' With Too-Low Inflation...
Federal deficit tops $1 trillion - again...
Consumer Sentiment Falls...
Damage From Mortgages Spreads...
BANK OF AMERICA shares fall up to 6.5%...

China to USA: We are not to blame for your problems...
Dollar fall sparks stability warnings...
Currency tensions persist...

Support for Afghanistan war at all-time low...
17 TROOPS KILLED IN PAST 3 DAYS...

BANK OF AMERICA Downgraded by Bond Market...
Stock Selloff Adds to Pressure on Banks...
Washington Policy Makers Resist Calls for a Big Fix in Foreclosure Crisis...
Fuel pipeline to Paris cut as protests escalate...
NEW NORMAL: Long Recovery Looks Like a Recession (Depression) ...
Applications for jobless benefits rise to 462,000...
'Higher-than-expected'...
September home foreclosures top 100,000 for first time...
Inflation, Trade Deficit Surge Higher...
Dollar tanks as Bernanke speech looms...
Afghans allege abuse at secret US jail...
13 troops killed in Afghanistan -- in two days...
Fed Mulls Raising Inflation Expectations to Boost Economy...
Gold Hits Another Record...
Pension protests escalate in France...
Sarkozy stands firm...
Strikes shut Eiffel Tower...
Blankley: The White House Bunker So Soon?

Comment on: The O'Donnell-Coons debate and survival of the fittest at 10/14/2010 10:07 PM EDT

O'Donnell, evolved The O'Donnell-Coons debate and survival of the fittest (Washington Post) [ Or might that be ‘sh******, or flittest, … says Stromberg: O'Donnell is... wow … I second that emotion … Wow!
Test yourself to find out how much you know about Sarah Palin. Take the quiz and after, check out The Washington Post's 'Five Myths about Palin.' (Washington Post) [ Geeh! I scoured the quiz / 5 myths and nowhere did I see the obvious myth; viz., that she really had a brain. Maybe gal pal pol protégé o’donnell can help her out … a few mysterious words, a slimy newt (gingrich) in a caldron of b*** s*** , and voila … a new reality which is what o’donnell herself is sorely in need of … O'Donnell, evolved Milbank: She didn't mention mice with human brains in Wednesday's debate. But she said silly things. Stromberg: O'Donnell is... wow The CNN host, moderating the long awaited Delaware senatorial debate Wednesday night, was trying to get the Republican nominee to talk about her 1998 statement on the Bill Maher show that "evolution is a myth."
"Do you believe evolution is a myth?" Blitzer asked.
"I believe that the local ... " O'Donnell began, then started anew. "I was talking about what a local school taught, and that should be taught, that should be decided on the local community."
"Do you believe evolution is a myth?" the moderator repeated.
"Local schools should make that decision."
"What do you believe?"
"What I believe is irrelevant."
"Why is it irrelevant? Voters want to know."
"What I will support in Washington, D.C. is the ability of the local school system to decide what is taught in their classrooms," O'Donnell repeated.
The answer, though, was obvious: Of course she believes in evolution; she is a product of evolution herself. She has evolved from a very odd woman who spoke about the evils of masturbation and of mice with fully functioning human brains and of her experience in sorcery (but she didn't join a coven!). …]

Comment on: U.S.-led forces aiding reconciliation talks between Afghan government, Taliban at 10/14/2010 9:57 PM EDT

U.S.-led forces aiding reconciliation talks between Afghan government, Taliban (Washington Post) [ Yeah! I think quite a few people are saying none too soon, and then there’s the american defacto bankruptcy thing … and then when america can gracefully or ungracefully vacate other peoples lands … sounds like a plan! Drudgereport: 13 troops killed in Afghanistan -- in two days... ]
Afghan spending faces scrutiny (Washington Post) Wow! Talk about a little bit late for that. Oh, right … they were busy spending money the nation doesn’t have on other things. Congress extends war funding for Afghanistan Baltimore Co. Independent Examiner | Congress voted to extend funding for the war in Afghanistan by an additional $59 billion late on Tuesday. Disappearing Act: $8.7 Billion of Iraq Development Money Missing Kurt Nimmo | Government says it is all the fault of shoddy accounting practices. 3 U.S. troops die in Afghan war's deadliest month (Washington Post 7-30-10) World News Digest: a Worth it? 4 U.S. troops die in bomb blast in south Afghanistan (AP, July 24, 2010) ‘There will be blood’ … whoops, that’s oil, wrong movie theme. This one’s about heroin trade. 2 More Americans killed in copter crash in Afghanistan (AP) Not so much, unless they rename Tony Montana, to To Mon el Swahili and recut ‘Scarface’ to reflect an Aghanistan Heroin connection, or similarly change ‘Hurt Locker’. It’s a good thing for the military that IQ tests aren’t required. Three U.S. Embassy guards killed in rocket attack in Baghdad's Green Zone (Washington Post) Big yes there since ‘The Green Zone’ got Hollywood movie status. Bomb near Iraq mosque kills 15; U.S. soldier dies in road blast (Washington Post, July 22, 2010) But guess what … none of that’s worth it; even for volunteer soldiers whose suicide rate is unprecedented owing to this pointless, meaningless conflagration for the sake of the military industrial complex and the enrichment of the few; and, to which Pat Tillman was to attest which got him fragged.

Comment on: Lack of proper mortgage paper trail could leave big banks reeling again at 10/14/2010 9:13 PM EDT

Debacle threatens economy - Lack of proper mortgage paper trail could leave big banks reeling again
oy (Washington Post) [ Could? Kind of brings to mind the old wives’ tale that ghosts are spirits that don’t realize they’re already dead … I mean, let’s get real! ]

Comment on: Worries over fast-tracked foreclosures send bank stocks plummeting at 10/14/2010 9:04 PM EDT

Foreclosure worries shock bank stocks (Washington Post) [ Come on! If it was only that, they’d be jumpin’ for joy. The fact is the economic realities are far more dire than the pre-election spin; and then there are the toxic assets / paper / securities now marked to ‘anything’ as per legislated FASB rule change. The last debacle has never really ended and Davis explains, infra, how these stock rallies are all hot air. ]

Comment on: 5 Myths about Sarah Palin at 10/14/2010 9:39 PM EDT

Test yourself to find out how much you know about Sarah Palin. Take the quiz and after, check out The Washington Post's 'Five Myths about Palin.' (Washington Post) [ Geeh! I scoured the quiz / 5 myths and nowhere did I see the obvious myth; viz., that she really has a brain. Maybe gal pal pol protégé o’donnell can help her out … a few mysterious words, a slimy newt (gingrich) in a caldron of b*** s*** , and voila … a new reality which is what o’donnell herself is sorely in need of … O'Donnell, evolved Milbank: She didn't mention mice with human brains in Wednesday's debate. But she said silly things. Stromberg: O'Donnell is... wow The CNN host, moderating the long awaited Delaware senatorial debate Wednesday night, was trying to get the Republican nominee to talk about her 1998 statement on the Bill Maher show that "evolution is a myth."
"Do you believe evolution is a myth?" Blitzer asked.
"I believe that the local ... " O'Donnell began, then started anew. "I was talking about what a local school taught, and that should be taught, that should be decided on the local community."
"Do you believe evolution is a myth?" the moderator repeated.
"Local schools should make that decision."
"What do you believe?"
"What I believe is irrelevant."
"Why is it irrelevant? Voters want to know."
"What I will support in Washington, D.C. is the ability of the local school system to decide what is taught in their classrooms," O'Donnell repeated.
The answer, though, was obvious: Of course she believes in evolution; she is a product of evolution herself. She has evolved from a very odd woman who spoke about the evils of masturbation and of mice with fully functioning human brains and of her experience in sorcery (but she didn't join a coven!). …

Thrill Ride Thursday: Can the Dollar Drop Fast Enough to Keep the Markets Up? Davis [ The following from Davis is really the key to understanding the scam / fraud which also preceded the ‘financial crisis’ (which continues) and consequent market crash ]: ‘…our market "rally" is ALL about the declining dollar. We are not used to inflation in this country - it hasn’t been much of an issue for the past generation but that’s what we’re seeing here as we are experiencing lower wages, lower demand and flat prices - THAT IS INFLATION or, as we used to say in the 70s - STAGFLATION … In fact, I had been getting bearish because I thought corporate profits weren’t going to be so good this quarter, what with the lack of sales and all, but I was wrong. I was wrong because corporate profits are priced in dollars and dollars are worth 10% less than they were the last time corporations reported. So silly me - all profits are inflated by 10% and that 10% is the E that gets divided from the P and gives us a much better price/multiple to hang our hats on and that gets investors to BUYBUYBUY and, as I said yesterday - they may as well because Lord knows it’s utter foolishness to leave your money in a bank and just watch it lose 2.5% of its buying power EVERY MONTH. Isn’t the declining dollar good for exports? That’s what they keep telling us, isn’t it? Well, it’s not. What do you think - that AAPL is making iPhones in China and then shipping them to Cupertino and then shipping them back to Hong Kong and Tokyo to sell? No, that would be silly. AAPL is a big multi-national corporation that has an office in Cupertino but manufactures almost everything overseas. And why wouldn’t they? Despite a 20% pay raise at FoxConn (and it’s nice to have a 3rd party employ 100,000 workers for you so you can still claim your 34,000 person work-force is mainly American) Apple’s labor cost of producing an iPad only rose from 2.3% to 3% but that’s in Yuan, which have declined 12.5% with the dollar since May so even-Steven for AAPL! Oh yes, exports (sorry, I went off track): So, exports were up just 0.2% as the dollar crashed. Why? Because we don’t make anything here - there’s nothing to export. As Eddy Elfenbein points out in his excellent "24 Statistics about the US Economy that are Almost too Embarrassing to Admit," despite inventing the television in 1927 (Philo Farnsworth for you trivia buffs), NOT ONE (ZERO) of the 211 MILLION televisions sold in the World in 2009 was made in America. In fact, overall manufacturing is down 60% in the past 40 years and the US has lost over 30M factory jobs since Al Gore lost his. Only 12M Americans, not even 10% of our workforce, now work in Manufacturing so EVEN IF a 10% decline in the dollar boosted manufacturing by 10% and EVEN IF making 10% more stuff got US Corporations to hire 10% more staff - that would add just 1.2M workers. That’s not very likely when FoxConn is happy to ramp up with workers who make less money per day than a US worker pays for lunch at a roach coach…’

The Shape of Market Bubbles, Including Gold [ In addition to the frauds on wall street, the fed’s ‘forever blowing bubbles’ … you’ve heard that song before … I’m sure of it! ] (Short Note: On June 23rd technical analyst and CNBC contributor Daryl Guppy made this prediction: Shanghai Index to Fall to 2,300 & 'Rapidly' Rebound. Click the prediction link to read his rationale. In retrospect we see that Guppy's forecast wasn't far off. The index hit its recent low of 2363.95 on July 5th and gained 20.02% as of yesterday's close. A 20% gain in a little over three months definitely qualifies as a rapid rebound.) Short: ‘In my recent reviews of major worlds markets, I included a chart of the amazing bubble in the Shanghai Composite Index. In this post we'll build an overlay of four major bubbles across market history to see the variety of shapes a bubble can take. But first let's take a long view of the index. Incidentally, the index's latest close was 2586.21. So a fall to the area Guppy mentioned is about a 10% correction from this point. [chart] The next chart centers the Shanghai Composite. The peak is the center of a 3000-market day timeline. Markets are open approximately 250 days per year, so this is a snapshot of a little over eight-and-a-half years with plenty of room left to track the future behavior. The dramatic rise took place over about one year with a dramatic collapse of about the same duration. The symmetry of this these two years is astonishing and, as we'll see, not necessarily characteristic of bubbles.[chart] Now we'll add the Nasdaq Tech Bubble. The Nasdaq was a bit less aggressive in the early stages of bubble formation, but the collapses are remarkably similar.[chart] The next chart adds the Dow of the late Roaring Twenties and Crash of 1929. Here we see a more gradual bull market over the first five years with a major acceleration occurring in the 12-13 months prior to the peak. The 1929 Crash took the Dow to the legendary lows that the Nasdaq nearly equaled 70 years later. But the Dow decline lasted a good six months longer before beginning a sustained bear-market rally. [chart] The Nikkei 225 bubble is one I periodically feature in an overlay with the S&P 500, where it looks amazingly steep as the central pattern of a 40+ year timeframe. But in the context of this series, the Nikkei peak on the last market day of 1989 was far more gradual in both the making and unwinding. The first year of the decline, however, was as savage as the other three. [chart] Bubbles happen, and they usually go unrecognized by the majority of market participants until the late stages. The left side of the bubble is usually more gradual than the collapse, although the incredible rise of the Shanghai market is a notable exception. People often use alphabet metaphors for recoveries: V-shaped, W-shaped and L-shaped. It's too soon to characterize the Shanghai Index, but the others most closely resemble an "L" over the timeframe of these charts. Footnote: Is Gold a Bubble? It doesn't appear to be. While the rise somewhat resembles the Nikkei leading up to the 1989 peak, Gold doesn't come anywhere close to the bubble shape of the Nasdaq and Shanghai examples we've reviewed. [chart] Is Gold cheap? No. Can it continue higher from here? Theoretically, yes. In reality, only time will tell. Disclosure: No positions’

The 'Rubber Band Rule' Proves Pretty Effective TraderMark ‘On Wednesday I noted that the market was approaching levels above the 13-day moving average where it typically corrected from during this rally. There was still a bit of room to the upside (about 0.3%-0.7%) but the rubber band was being pulled quite strongly. Effectively this is a simplistic way to speak of 'mean reversion.' For now the pattern continues.... buying comes in on the pullbacks to the 13 day, and then the market rallies and gets 2-3% above the 13 day, and that is where selling and/or consolidation occurs. It is nothing if not mechanically (silicon) consistent. One time this will be wrong. The pattern is the pattern... until it is not. Then you get havoc, and finally the bulls will get trapped. Of course, you never know which time will be the change. I thought it would have happened by now, but we are not operating under normal quasi-free market rules (rarely have we the past 3 years but now its a level of extreme beyond compare). So historical rule books are not working as well in 2008-2010. (Chart) As of now, S&P 1158 is the 13 day and it should move up tomorrow a few points. At some point QE is priced into the market, and I also have thought it would have happened by now, incorrectly. So each time we have an event like Bernanke talking tomorrow morning, we have to see if the market shrugs it off. There *have* been some divergences the past 24 hours - yesterday I noted the bond market (longer duration) reversing, and today even as the dollar is bludgeoned yet again we are not getting the "buy anything that moves" trade. Are those warnings signs or irrelevant? Obviously in 2 weeks it will be easier to tell you. I can print a litany of warning signs ... 93% of stocks in S&P 500 over 50 day moving average, rampant speculation in (pardon my french) s*** stocks, lack of leadership from former generals (the cloud computing stocks), and now rumors planted by banksters that Yahoo is going to be bought out (congrats to the CEO for $37M pay day for accomplishing no value add for shareholders by the way), or the latest buyout rumor: EMC Computer which is a fine $40B+ company. Surely Oracle will be happy to spit out $50B+ to buy it... after all, it's only money and we're printing more every second. But lots of those signs have been around for a while, and QE has overwhelmed everything. We need to see an event such as the speech tomorrow in which the market does not bid up risk assets on news EVERYONE already knows to mark any serious selling point... combined with a break of this 13 day MA (in my opinion). When the QE2 meme loses its potency, we finally have a change. As an aside, let me keep repeating - so it is not lost in the day to day - this will end badly. Frankly almost every 'solution' of the past 3 years brings with it terrible consequences - because we refuse to take our medicine. We just don't know when "it" happens... all we are doing is repeating the same policies that got us NASDAQ 99 and real estate 2005, and commodities 2007. We are just making the bets bigger and more dangerous, and kicking the can of yarn (which each time it rolls, it grows). I've written many times when we look back in a decade Bernanke will be viewed in the same harsh light as Greenspan... even though "the market" worshiped Greenspan when he was doing those things, just as "the market" worships Bernanke. Look at these PE firms borrowing money to reward themselves as if its 2006 again, look at the hedgies bidding up risk assets with free money, look at the banks cost of capital near zilch (and they still can't get out of their own way). Everyone is getting 'rich' off the risk assets (woo hoo) - why would "the market" not love central bankers like this? Why am I talking like this? I should be celebrating like a good ole Wall Streeter! But as a common American - you should be anywhere from disgusted to fearful of what these people are doing. Just as Greenspan refused to allow a real (cleansing) recession under his watch, and instead created a pressure valve that once blown brought down the entire U.S. financial system - Bernanke is painting the exact same portrait. But like good Romans, we are supposed to enjoy the orgy while it happens and let tomorrow worry about itself - Cramerican style. Just don't lose sight of the long run - the consequences of this 'recovery' are going to be debilitating. My only shock is as we repeat the same Fed induced bubbles now on 5-8 year cycles, no one questions those who bring us these issues repeatedly - instead we give them even more power. Quite amazing really. Disclosure: None’

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 (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. 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. He isn’t back down from that outlook:

I’ve had a couple of conversations lately with people who follow politics and public affairs, but aren’t that close to the economic discussion — and I’ve discovered that there are two comforting delusions still out there.

Delusion #1 is that we’re on the road to recovery, just more slowly than we’d like; to be fair, the White House keeps saying this.

But it’s not at all true. GDP is growing below potential; employment, even if you focus just on private employment, is growing more slowly than the working-age population. If you ask how long it will take us to return to, say, 5 percent unemployment on the current track, the answer is forever.

Delusion #2 is the belief that the stimulus may yet do the trick, because there are still substantial funds unspent. I tried to deal with this last year. The level of GDP depends not on total funds spent, but on the rate at which funds are being spent, which has already peaked; GDP growth on the rate of change in the rate at which funds are being spent, which peaked last year. It’s all downhill from here.

If you can ignore the schizophrenic market for just a second it’s hard to reject Krugman’s macro outlook. The private sector has been running on fumes since the debt bubble burst in 2007. The government’s extraordinary actions helped bolster the economy, but merely papered over what was a very weak private sector. As we see the government step aside it’s difficult to imagine that the weakness at the private sector won’t again be exposed for what it really is.
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). ]

Survey: Half of Wall Street expects bigger bonus this year (Washington Post) [ This is nothing short of incredible … What they should be expecting, for the sake of the nation and the world, is an 8 by 10 jail cell! ] Bloomberg The percentage anticipating a bigger bonus increased from last year.

Gerald Celente: “The selloff of America” Financial institutions on Wall Street are preparing to pay a shocking record $144 billion dollars in compensation & benefits. This amid spiraling foreclosures and an economic crisis that has devastated Americans, leaving many out in the street. Gerald Celente of the Trends Research Institute says that the gap between rich and poor in the US will continue to get larger because of the bank bailout that Washington shelled out in 2008.

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 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 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 my 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 are but 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 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. ]

Palestinians counter israeli offer on settlements (Washington Post) [ The Palestinians, unlike the lawless israelis are cognizant of u.n. resolutions, prior accords, international law, etc., in their proposal. ]

Parker: The economic crisis was an 'inside job' (Washington Post) [ And even worse, the f***-up is still a continuing ‘work-in-progress’ … really … they haven’t a clue … not even the slightest idea what they’re doing. … Alex Jones: Total Economic Implosion and Bondage by Design It’s here where I part ways with Jones et als inasmuch as, though they will attempt to have same serve their typically nefarious ends, these ‘so-called elites’ (there really is no such thing in this worldly reality except in their own warped minds) are but incompetent vegetables (Jones gives them much too much credit, although their incompetence does play a significant role in this pathetic state of the world), but indeed many of them criminally insane and who should be incarcerated for real crimes. ] Infowars.com | The global elite have engineered a total economic collapse. ] Trying to assign blame to either Democrats or Republicans is pointless. Everyone is culpable.

Feds press mortgage lenders to fix documents (Washington Post) [ Fix documents? In matters involving far more serious crimes of far more significance longer term to the nation, I’d be content with mere adherence to clear law applied to the documented facts, no matter where and to whom the crimes lead … see infra… ] 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 15, 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,

1. 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..
2. 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.
3. 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 ]
4. 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 ]
5. 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.
6. 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) 219-**** (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. (10-15-10) I spoke with Rose, FBI, ADIC Secretary, who indicates once again that your office has not received the aforesaid and which can reasonably be presumed to have been tampered with, and hence, a violation of the federal statute concerning same.

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Label/Receipt Number: 0310 1230 0000 0862 8183

Expected Delivery Date: September 15, 2010

Class: Priority Mail®

Service(s): Delivery Confirmation™

Status: Delivered

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

Track and Confirm

Enter Label/Receipt Number.

Enter Label / Receipt Number.

Detailed Results:

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 ___ day of October, 2010.

Signed: ___________________________________

Albert L. Peia

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Label/Receipt Number: 7009 2250 0002 1116 5915
Expected Delivery Date: October 6, 2010
Class: Priority Mail^®
Service(s): Certified Mail^™
Status: Delivered

Your item was delivered at 11:42 am on October 06, 2010 in LOS ANGELES, CA 90024.

Detailed Results:

	Delivered, October 06, 2010, 11:42 am, LOS ANGELES, CA 90024
	Arrival at Unit, October 06, 2010, 4:15 am, LOS ANGELES, CA 90024
	Acceptance, October 05, 2010, 11:12 am, LOS ANGELES, CA 90017

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Label/Receipt Number: 0309 3220 0000 4028 9039
Expected Delivery Date: October 6, 2010
Class: Priority Mail^®
Service(s): Delivery Confirmation^™
Status: Delivered

Your item was delivered at 9:03 am on October 06, 2010 in LOS ANGELES, CA 90024.

Detailed Results:

	Delivered, October 06, 2010, 9:03 am, LOS ANGELES, CA 90024
	Arrival at Post Office, October 06, 2010, 6:10 am, LOS ANGELES, CA 90024
	Acceptance, October 05, 2010, 11:11 am, LOS ANGELES, CA 90017

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Sent VIA UPS Courier this 15th day of October, 2010.

Signed: Albert L. Peia

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] Federal regulators seek to prevent the growing furor over improper foreclosures from escalating, pressing mortgage lenders to replace flawed and fraudulent court documents while insisting that foreclosures continue apace. But advocates say the policy is soft on banks and may have little effect, because many lenders are already taking such steps.