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Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Could Wikileaks Revealing Major Bank Secrets Crash the Global Economy?

Stock-Markets / Financial Crash Nov 29, 2010 - 06:04 PM GMT

By: Nadeem_Walayat

Stock-Markets

Best Financial Markets Analysis ArticleWhilst the mainstream press is focused on tittal tattle such as the Duke of York's' rude utterances or South Koreans suggesting that China would be more than happy for them to takeover the North that smacks more of wishful thinking than anything credible.


However there is a serious risk that in a forthcoming 'mega leak' on the Wikileaks website during early 2011, may contain critical information on the state of any number of the worlds major banks that could trigger another September 2008 Lehman's style financial contagion panic event.

Julian Assange, the founder of Wikileaks told Forbes in an interview :

“We have one related to a bank coming up, that’s a megaleak."

“It’s not as big a scale as the Iraq material, but it’s either tens or hundreds of thousands of documents depending on how you define it.”

“You could call it the ecosystem of corruption,”

“It’s also all the regular decision making that turns a blind eye to and supports unethical practices: The oversight that’s not done, the priorities of executives, how they think they’re fulfilling their own self-interest.”

He did not elaborate on which bank, but it can be concluded that it would likely be on one of the current 10 largest investment banks rather than Lehman's or others that have been nationalised or taken over by other banks.

Likely candidates for the banking 'mega-leak' are:

  • JP Morgan
  • Goldman Sachs
  • Barclays
  • Citibank
  • HSBC
  • Bank of America
  • Deutsche Bank
  • BNP Paribas
  • UBS

Given the leaks to date, probability favours it being a major US bank with the most probable therefore being JP Morgan or Goldman Sachs.

Julian Assange is on media a roll, and may go a step too far by triggering financial armageddon as the worlds economies have already virtually bankrupted themselves by bailing out their bankrupt banks and therefore are not any shape to embark up on a new series of mega bailouts as a consequence of new information released, especially as the financial markets will not wait for explanations but seek to act immediately to discount the risks implied by new exposures, which given the size of the $1.4 Quadrillion global derivatives market, would not take much in terms of further off balance sheet losses exposure to trigger a collapse of the whole global financial system that no country is big enough to bailout.

JP Morgan is already being targeted by an internet campaign started by Max Keiser "Crash JP Morgan Buy Silver"(How to Get Hedge Funds to Push Silver Price to $500 and Crash JP Morgan), as a consequence of JP Morgan's huge gold and silver short positions.

Small depositor protection strategies against banks going bankrupt where highlighted recently in the article Euro Debt Crisis Bankruptcy Bailout Queue, Protect Savings & Deposits From Banks Going Bankrupt!

Comments and Source: http://www.marketoracle.co.uk/Article24643.html

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-10 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 20 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis specialises on UK inflation, economy, interest rates and the housing market and he is the author of the NEW Inflation Mega-Trend ebook that can be downloaded for Free. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 600 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

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.

Nadeem Walayat Archive

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


Comments

Rick
29 Nov 10, 22:47
Wikileaks: In No Position To Reveal Anything

Nadeem: Why would Wikileaks be waiting 'til early 2011 to 'maybe' reveal the identity of the target bank? Why not tomorrow? Now even if this should concern a fairly sized bank, do you really think that Wikileaks won't be shut down first?

Actually, we really don't need information from Wikileaks to make a valid evaluation of the present condition of the global banking systems. We're all fully aware by now that they're teetering and wobbling over the abyss.


Nadeem_Walayat
29 Nov 10, 23:47
Wiki Bank Run

Delay ? could be multiple reasons.

Wiki will be tartgetting specific banks, depending on what the information is, it could cause a run, it has happened several times already.... when the media spot light was focused on specific banks

i.e. Northern Rock, Bear Stearns, Lehmans, and came close to many more banks during Sept and Oct 2008 i.e. HBOS, and a string of smaller banks in the UK.


M
30 Nov 10, 01:43
Bank Run

Bank Run December 7

Crash JPMorgan Buy Silver


Rick
30 Nov 10, 04:43
Wikileaks: Lessons To Be Learned

Well, in the event that Mr. Assange should possess some concrete damaging information concerning select banks, there are two cardinal rules that I think Mr. Assange should pay heed to: "Never step on the toes of the big boys, lest one be trampled" & "Never play with fire, lest one be burned".

I should think that the D.C. Madaam (and her cohort) along with Vincent Foster had already touched on those valuable lessons.


S
04 Dec 10, 21:47
Wikileaks: Lessons to be Learned

Everyone always says do not mess with the big boys and scare people into not doing right. If this brings down the corruptness of the institution, sanity will prevail, not doom.


Brian Thiesen
05 Dec 10, 22:53
Crash JPM?

Yes crash jpm then their assets will go to GS sponsored by the fed, GS will make billions on the shorts, buy them up on the cheap, and as the dollar soars on the liquidations of all assets they will make billions of silver shorts, surpress the price of silver all people will lose faith in silver or metals from the huge loss, the dollar remains world currency.

Or silver/gold/copper becomes currency (which the elite own most of) then they can control the issuance of such things and because there really isnt enough to go around for a 7 billion people economy if debts are called in they will be forced to pay in gold/silver which is in huge shortage forcing people to sell assets (houses etc.) on the cheap to pay debts. At which point the hoarders (banks.... not gold bugs) will buy them all up on the cheap (like they have done multiple times) and we will be further indebted

Those with gold and silver can feel awesome that their asset went up X million % in markets that %99 people will no longer trust and in a world of a crash of this magnitude bullets will be worth more than any gold or silver.

And those with gold or silver better be sure the %95+ of people dont find out they have it otherwise they will come and get it (if it is that valuable) in which case protection will be needed.

Buy gold or silver for investment purposes if you wish, dont bet the farm on it saving your @#$ if the S--t hits the fan.

Anyone see the pictures in britain of the shelves being empty in markets with people standing there? (because of freeze which will continue until someone fixes the gulf) Does anyone think people have 0.000001% of a concern what gold is trading at? Might it not be in the event of a collapse if nothing is moving people would care less about gold or silver price rise or fall and resort to whatever it takes to get food on the table?

In 3 days people will steal for food in a week they will kill for it, what will your coins do for you in that event? NOTHING

I only say this due to people thinking a "catastrophe" can happen and magically all will be well with all markets and they cash in on their "smart" investment.

Crash JPM, who cares, think the elite do? it would only cause further consolidation. It is not what stands as the currency but rather who controls the issuance (contraction/expansion) gold/silver as currency is a bankers dream far beyond paper, which people still refuse to believe can work. Although it is proven it can, it just depends on who is issuing the money.

Imagine cities and counties gave the loans for the mortgages in their district.

Their would be no debt on any level, Banks would not be required and the people would be issuing their money (whatever that needs to be paper etc.)

They could triple Property taxes and as long as it was under the price of a mortgage they would make and the citizens would save. They (the treasury) would be responsible to the people and at which point the paper would work, it is just that now it is controlled by those who's desire is just that control.

Banks could still exist they would just not have as big a monopoly, be force to be smart with cash so on and so on. There are hundreds of ways it could work without gold or silver or metal.

I dont condone or like the way the paper "scheme" works but if you look at history the biggest pushers of gold/silver as currency have been bankers themselves back to babylonian times as this they simply would gain control of and nothing would change

This is not about money or what is money, this is slavery, and slaves only exist by control. Slaves/masters... make sense now


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