…. hard to keep up with all your posts after a horrendous 2 day trip but spirits seem high… I am off on a bit of a jolly in springbok land… will be traveling north through Paternoster today for a few days…. then back to my arid little corner of the world…
best to all
Goldman Goes Rogue - Special European Audit to Follow
By Simon Johnson
“…We now learn – from Der Spiegel last week and today’s NYT – that Goldman Sachs has not only helped or encouraged some European governments to hide a large part of their debts, but it also endeavored to do so for Greece as recently as last November. These actions are fundamentally destabilizing to the global financial system, as they undermine: the eurozone area; all attempts to bring greater transparency to government accounting; and the most basic principles that underlie well-functioning markets. When the data are all lies, the outcomes are all bad – see the subprime mortgage crisis for further detail.
A single rogue trader can bring down a bank – remember the case of Barings. But a single rogue bank can bring down the world’s financial system.
Goldman will dismiss this as “business as usual” and, to be sure, a few phone calls around Washington will help ensure that Goldman’s primary supervisor – now the Fed – looks the other way.
But the affair is now out of Ben Bernanke’s hands, and quite far from people who are easily swayed by the White House. It goes immediately to the European Commission, which has jurisdiction over eurozone budget issues. Faced with enormous pressure from those eurozone countries now on the hook for saving Greece, the Commission will surely launch a special audit of Goldman and all its European clients…
…Goldman will probably be blacklisted from working with eurozone governments for the foreseeable future; as was the case with Salomon Brothers 20 years ago, Goldman may be on its way to be banned from some government securities markets altogether. If it is to be allowed back into this arena, it will have to address the inherent conflicts of interest between advising a government on how to put (deceptive levels of) lipstick on a pig and cajoling investors into buying livestock at inflated prices.
And the US government, at the highest levels, has to ask a fundamental question: For how long does it wish to be intimately associated with Goldman Sachs and this kind of destabilizing action? What is the priority here - a sustainable recovery and a viable financial system, or one particular set of investment bankers?
To preserve Goldman, on incredibly generous terms, in the name of saving the financial system was and is hard to defend – but that is where we are. To allow the current government-backed (massive) Goldman to behave recklessly and with complete disregard to the basic tenets of international financial stability is utterly indefensible. (There is a case to be made that the money center banks, in particular Goldman and JPM, are sometimes acting as instruments of US foreign policy - Jesse)
The credibility of the Federal Reserve, already at an all-time low, has just suffered another crippling blow; the ECB is also now in the line of fire. Goldman Sachs has a lot to answer for.”
jessescrossroadscafe.blogspot.com/2010/02/simon-johnson-goldman-faces-special.html
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….only have room for East or West…..looks like you want North South Middle….probably Hawaii too i bet….Alaska ?….
….the Aussies arent complaining and they only got 1 choice…..you all got 2
….Hi Viking….say hi to your Inn Owner Friends too….
….Minnesota ….I would say is more west than east …no?
…..in Canada…Ontario is east….Manitoba is west….figure it out….there’s gotta be a midline there somewhere
…still cant figure out how you figured my birth date….sneaky !
… and so floridagold fast gun trader walks into the saloon…. he glances about the room taking it all in… where’s the signs? Does he have a nemesis in there? Maybe an opportunity? He’s on knife edge and his spurs jingle as he walks towards the bar…. “whiskey” he growls to the bald and mustachioed bartender… “and keep em comin” A blonde bar floozy sidles up next to him with a big smile… “Hello there cowboy” she coos…………….
I gotta go do some stuff… catch you guys tomorrow.
“The truth of the matter about the market is he is cool, like a cat, with his poker face and make no mistake..he plays the game to completely clean you out. He usually holds off showing you his hand until the very last possible moment. I can also assure you that he bluffs better then any gambler I’ve ever known. Clever bastard…he is, but unbeatable he is not.”
I don’t see a turn up in the chart BUT if the article was correct and the cost of renting ships has gone up that much and that many waiting - then I would expect the chart to turn up.
IF, the article is based on one place in the world and wishful thinking - then I would expect it to get much more oversold as TQ pointed out. The chart is certainly not bullish as it stands currently - but I will be watching it on occassion.
Right now - we need to get Gold and Silver lifted off to the upside!
I was thinking that this shipping anomaly was caused by local factors, maybe a blip in the export of coal from Newcastle. The BDI is a much better indicator for the world’s trade. Pretty hard to say that that is an optimistic chart.
But now I see that floridagold sees a hint of upturn there…. that I missed in my haste. I guess that’s what makes a market. 
But… how do you like gold’s action tonite? Soon… “the dollar’s going up” big deal.
Best, ipso
After reading frr’s post of 20:09 I realise you are not well. Hope you feel better soon.
Frankly I am very fed up with all the increasing taxes and other takeaway programs that take from me who has worked hard all my life to accumulate something for my old age, and give it to all the government deadwood and other parasites that have never done anything but sit on their ass and hold out their hand and expect a free ride through life. It doesn’t matter whether we are talking about individuals, companies, or countries. It’s all the same. So how does taking from the countries that do, and giving to the countries that not only don’t, but also expect the countries that do to provide them with support, make any sense??? All that will happen is that government will continue to grow and take from those that produce and give it to those who don’t. The difference will be that there will be unified power to control the population with mandatory chipping, digital currency, and the removal of all private property rights, all private industry, and every other freedom, until all that is left is the elite, the slaves, and the ovens. Wake UP!!!
I plan to re-read the Martin Armstrong material over the next few weeks. May start with this one:
economicedge.blogspot.com/2009/07/martin-armstrong-how-all-systems-can.html
Just wondering how the continuing liquidity crisis will lead property to move to those with cash, and if it will take a few years for it all to unfold. And if the sovereign debt crisis will be the tool used at this point, just as the banking crisis was used earlier. This reminds me of some earlier history.
Won’t have time to post much. Back to just reading.
The article was not bullish as I read it.
I read the article. The higher rates in 4q are expected to result from mothballing excess ships. See below and end of article. China continues to import coal and iron ore - in lesser amts. But with the articles I posted earlier today I wonder how anyone can write that world trade is expanding. The latter part of the article is much less sanguine. For example:
” China’s iron-ore imports fell 25 percent in January, from the previous month, according to customs data on Feb. 10.
” Shipping “is highly dependent on a continued growth in Chinese iron-ore imports to absorb the dry-bulk fleet,” said Martin Sommerseth Jaer, an analyst with Arctic Securities ASA in Oslo with a “sell” rating on commodity shipping lines.
” Van den Abeele of Castalia Fund Management also expects rates to keep dropping, to as low as $15,000 a day, in coming months as Chinese growth slows and the fleet expands. Rates will then rebound as owners mothball ships and congestion worsens, he said. “
grin used to post a webpage that tracked how much traffic a certain website was getting, does anybody rememeber the name? thought it started with an A…….,
TIA
I would expect this to turn up pretty soon then based on that article. We’ll watch it and see.
I don’t think that it is that good. Read the fine print and they require a wet/dry tanker to be pulled behind and fitted with an umbilical chord.
Maybe this model works a little better? Also serves a dual role if you are a deer hunter.
The Wothahellizat
Certainly winner for the best name, Adidac425 was right to identify the Wothahellizat as one of the all-time great survival vehicles. If the Sportsmobile is minimalist, the Wothahellizat is maximalist. It’s a motorhome on wheels, literally. Nature photographer Rob Fray used this to do his work across the Australian continent. The perfect vehicle for when you don’t want to leave anything at your underground fallout shelter. [Wothahellizat]
