Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
Does Fed Know Something Gold Investors Do Not Know? - 21st Mar 19
Gold …Some Confirmations to Watch For - 21st Mar 19
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19
This Is How You Create the Biggest Credit Bubble in History - 17th Mar 19
Crude Oil Bulls - For Whom the Bell Tolls - 17th Mar 19
Gold Mining Stocks Fundamentals - 17th Mar 19
Why Buy a Land Rover - Range Rover vs Huge Tree Branch Falling on its Roof - 17th Mar 19
UKIP Urged to Change Name to BNP 2.0 So BrExit Party Can Fight a 2nd EU Referendum - 17th Mar 19
Tommy Robinson Looks Set to Become New UKIP Leader - 16th Mar 19
Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - 16th Mar 19
Towards the End of a Stocks Bull Market, Short term Timing Becomes Difficult - 16th Mar 19
UKIP Brexit Facebook Groups Reveling in the New Zealand Terror Attacks Blaming Muslim Victims - 16th Mar 19
Gold – US Dollar vs US Dollar Index - 16th Mar 19
Islamophobic Hate Preachers Tommy Robinson and Katie Hopkins have Killed UKIP and Brexit - 16th Mar 19
Countdown to The Precious Metals Gold and Silver Breakout Rally - 15th Mar 19
Shale Oil Splutters: Brent on Track for $70 Target $100 in 2020 - 15th Mar 19
Setting up a Business Just Got Easier - 15th Mar 19
Stock Market Elliott Wave Analysis Trend Forercast - Video - 15th Mar 19
Gold Warning - Here Are the Stunning Implications of Plunging Gold Price - Part 1 - 15th Mar 19
UK Weather SHOCK - Trees Dropping Branches onto Cars in Stormy Winds - Sheffield - 15th Mar 19
Best Time to Trade Forex - 15th Mar 19
Why the Green New Deal Will Send Uranium Price Through the Roof - 14th Mar 19
S&P 500's New Medium-Term High, but Will Stock Market Uptrend Continue? - 14th Mar 19
US Conservatism - 14th Mar 19
Gold in the Age of High-speed Electronic Trading - 14th Mar 19
Britain's Demographic Time Bomb Has Gone Off! - 14th Mar 19
Why Walmart Will Crush Amazon - 14th Mar 19
2019 Economic Predictions - 14th Mar 19
Tax Avoidance Bills Sent to Thousands of Workers - 14th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

Stocks Rise on G20 and FASB Hopes, Can Pigs Really Fly?

Stock-Markets / Market Manipulation Apr 30, 2009 - 09:30 AM GMT

By: Rob_Kirby

Stock-Markets

Best Financial Markets Analysis ArticleThe Fed / Treasury first announced that banks would be subject to stress tests back on Feb. 10, 2009.  This WSJ account is the earliest mention we’ve been able to find:


FEBRUARY 10, 2009

Banks to Get Stress Test Before Aid

As Part of Revamped Bailout, Cash Will Go to Those Deemed Healthy Enough to Lend

By DEBORAH SOLOMON and DAMIAN PALETTA

WASHINGTON -- Many U.S. banks will be subjected to rigorous examinations to see if they are healthy enough to lend before receiving additional financial aid, according to people familiar with the matter.

The stress tests will be part of the bailout revamp to be announced Tuesday by Treasury Secretary Timothy Geithner. In addition to fresh capital injections into banks, the new approach will include programs to help struggling homeowners; a significant expansion of a Federal Reserve program designed to jump-start consumer lending; and a private-public partnership to relieve banks of bad assets……

So…. as of the date of the article above – WHEN STRESS TESTS WERE CLEARLY PLANNED and ANTICIPATED – FASB [Financial Accounting Standards Board] rules CLEARLY stipulated that mark-to-market accounting was the measuring stick for prudently gauging the true financial health of any banking institution.

Benedict Benny’s Ballsy Bait & Switch

Something happened to the methodology for how stress tests would be conducted on the way to the recent G20 Central Banker confab, as this Reuters article dated April 2, 2009 reveals;

        US STOCKS-Wall St climbs on G20, FASB hopes

Thu Apr 2, 2009 10:23am EDT 

By Chuck Mikolajczak

NEW YORK, April 2 (Reuters) - U.S. stocks rose for a third straight session on Thursday on optimism the G20 meeting in London will agree on ways to temper the economic crisis and that new U.S. accounting guidance will favor banks.

World leaders will triple the war chest of the IMF to fight the worst economic crisis since the 1930's and impose curbs on financial markets, monetary sources at the G20 summit said. For details see [ID:nL1230573].

In the United States, the Financial Accounting Standards Board said new mark-to-market accounting guidance will be effective for the second quarter, with early application allowed for the first quarter, and not be retroactive.…

We can only surmise that the TRUE reason for this accounting chicanery is to obfuscate the true condition of institutions such as Goldman Sachs – which recently, for the first time – was subject to minimal transparency requirements when, as a bank for the first time, they were required to report to the Office of the Comptroller of the Currency [OCC] and their financials were subject to the OCC’s Q4/08 Quarterly Derivatives Reporting:

Ladies and gentlemen, the Total Credit Exposure to Capital ratio is one of the most telling capital adequacy ratios known to man.  If ever there was a failing grade on a “stress test” – HERE IT IS IN SPADES!!!  The aforementioned measure of capital adequacy, [1,056.4] in Goldman’s case, is so TOXIC – in fact; one can only wonder if regulators might have required radiation suits and Geiger Counters to safely measure the TOXICITY of Goldman’s books.  Goldman’s figures stand out almost 5 times worse than those of Citibank and Bank of America and 11 times those of Wells Fargo.

Of course, with the discarding of real accounting standards in the United States, the true extent of this toxicity will now conveniently be obfuscated from the general public in further OCC reports,

“..new mark-to-market accounting guidance will be effective for the second quarter, with early application allowed for the first quarter, and not be retroactive.

Not retroactive?????  “Effective for the second quarter, with early application allowed for the first quarter??????”    Who are these CLOWNS trying to kid?  From this time forward, this shall no doubt become known as “the Goldman Clause”.

It’s hard to believe that the Chairman of the Federal Reserve would be involved in such a low-down-good-for-nothing traitorous act, ehhh?  Then we’re sure it will be even more difficult for the commoners to wrap their heads around this treasonous tid-bit:

According to testimony from the Bank of America CEO's February sit down with Andrew Cuomo, Lewis was "urged to keep quiet while the two sides negotiated government funding to help BofA absorb Merrill and its huge losses," apparently for the good of the financial system and the country, and since he *is* head of America's Bank, [Lewis] felt urged to comply (plus the bit about harm to his body if he failed to do so).

Q: Were you instructed not to tell your shareholders what the transaction was going to be?

A: I was instructed that 'We do not want a public disclosure.'

Q: Who said that to you?

A: [Hank the Hammer] Paulson...

Q: Had it been up to you would you [have] made the disclosure?

A: It wasn't up to me.

Q: Had it been up to you.

A: It wasn't.

Oh, and there was also the matter of Paulson threatening to take Lewis out (of office) if he didn't do exactly as he was told.

During his testimony, Mr. Lewis described a conversation with Mr. Paulson in which the Treasury secretary made it clear that Mr. Lewis's own job was at stake. Mr. Lewis still was considering invoking his legal right to terminate the Merrill deal. Mr. Paulson was out on a bike ride when Mr. Lewis phoned to discuss the matter, according to the transcript.

"I can't recall if he said, 'We would remove the board and management if you called it [off]' or if he said 'we would do it if you intended to.' I don't remember which one it was," Mr. Lewis said. "I said, 'Hank, let's de-escalate this for a while. Let me talk to our board.' "

 In a follow-up interview by Mr. Cuomo, conducted with Mr. Paulson’s office, this account of Cuomo's interview was reported by Tom LIndmark at Seeking Alpha,

“In an interview with this Office, Secretary Paulson largely corroborated Lewis’s account……”

“Secretary Paulson has informed us that he made the threat at the request of Chairman Bernanke. After the threat, the conversation between Secretary Paulson and Lewis turned to receiving additional government assistance in light of the staggering Merrill Lynch losses……..”

These Cads Have Other Dirty Tricks….

                

Now admittedly, Sir Benedict of Bernanke was not the “lone shooter” sitting all-by-his-lonesome on the sixth floor of the Book Depository in Dealey Plaza – he had help.  Rumor has it that none other than Tiny Turbo-Tax Timmy Geithner was spotted on the grassy knoll, armed with the only known copy of “The Crown Jewel” which was reported “swiped” from the Book Depository [or Fortus Knoxus, perhaps?] later on that evening;

 

You see folks; a rising gold price historically acts a canary-in-the-coal-mine – alerting all that things are “not right” in the monetary system.  Additionally, gold has historically served as the-go-to flight to quality / wealth preservation trade.  In the current environment, the powers that be desperately need U.S. Bonds to serve that function.  This is why gold has been auspiciously stifled [murdered] so many times at the EXACT moments of U.S. Dollar and Bond negative news.  The current Obama Administration is being “coached” by none other than Paul Volcker, who is clearly and factually on the record regarding the rising gold price circa 1980 – [excerpted from Volcker’s memoirs published in The Nikkei Weekly, November 15, 2004];                      

“That day, the U.S. announced that the dollar would be devalued by 10%. By switching the yen to a floating exchange rate, the Japanese currency appreciated, and a sufficient realignment in exchange rates was realized. Joint intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake.”

Fool me once, shame on you.  Fool me twice………

Maybe pigs really can fly?

By Rob Kirby
http://www.kirbyanalytics.com/

Subscribers to Kirbyanalytics are learners, educating themselves; not only about the merits of ownership of gold and precious metals - but valuable know-how on the merits of different forms of ownership as well as tips and guidance on the acquisition of physical precious metal. In the members only section you'll find other subscriber only articles and the balance of this article with sections titled, Physical Bullion Buyers Guide, More on Madoff and Is War in the Cards?

Copyright © 2009 Rob Kirby - All rights reserved.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Rob Kirby Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules