Category Archives: fidelity
via the economic collapse blog Be prepared for the next great transfer of wealth. Buy physical silver and storable food. Last month, a “secret meeting” that involved more than 100 executives from some of the biggest financial institutions in the United States was held in New York City. During this “secret meeting“, a company known […]
Be prepared for the next great transfer of wealth. Buy physical silver and storable food. zerohedge.com / by Tyler Durden on 12/12/2013 15:18 -0500 Following what we can only imagine was uproar following our discussion of Fidelity “allowing self-directed IRA holders to ‘invest’ in Bitcoin,” the company has very quickly reversed policy… As MarketWatch notes, “On an individual basis, […]
Warren Edward Pollock: Its a Wonderful Life MF Global, Mole, DOJ, Adam Smith’s Pink Slime of Finance
What if you woke up one day only to find that your pension, brokerage, or bank went bust! Your Savings and Loan (MF Global) did not have enough money to return to its customers because all the assets it managed on your behalf were locked into illiquid speculations. In the depression world of "Its a Wonderful Life" all the collateral was in the form of illiquid real estate.
In the modern world all the collateral times one thousand has been locked up in the form of fraudulent financial instruments called derivatives. Your bank got its credit from an even larger bank (Potter in its a Wonderful Life, and JP Morgan in regards to MF Global) Potter (JP Morgan) could demand payment at any time in the form of a margin call and it was in his financial interests to do so.
Thus George’s (Jimmy Stewart’s) small "Savings in Loan" in "Its A Wonderful Life" experienced a bank run; where it had to shut its doors. MF Global had to close its door through the bankruptcy process.
Potter then offers Savings and Loan Customers fifty cents on the dollar. MF Global customers are at the mercy of a trustee who has so far paid them seventy two cents on the dollar.
What is Collateral
Where is Your Collateral
Why is there a Shortage of Collateral
What are Derivatives and other Innovations in Finance
What is Utility Banking
What About Adam Smith
The infected, odiferous, and bad tasting pink slime (aka, the "higher standard") secretly added to our burgers for over a decade would be embarrassing to any system that pretends to the label "free enterprise," but it has special resonance amongst economists. Adam Smith’s most famous saying, which captures his central vision of markets, is a seemingly paradoxical tale about butchers. He wrote that we could rely on the butcher providing us with wholesome meat not because of his altruism, but because of his far more reliable devotion to self-interest. Our butcher may not care about us, but he cares about whether he gets our business. This causes him to act reliably as if he cared for our well-being. He knows that if he sells us unfit meat we will cease buying meat from him and his business will fail. Pink slime is inconceivable in Adam Smith’s ode to the self-interested butcher.
Tomorrow is only a day away!
Tepco: "Foundation improvement work" begins tomorrow at Reactor No.
Published: April 16th, 2012 at 1:20 pm ET
What is being hidden from customers now? Reuters "Fidelity customers sour on SEC proposals" is a propaganda-misstatement-falsity. Proposals would allow money market mutual fund values to float; another would force the staggering of withdrawals. This has the makings of a modern day run on the bank.. I have looked at the lack of quality in some money market mutual funds. This is a problem with all brokerage companies pegging funds to a dollar. If these funds are floating below a dollar now how are they being squared to a dollar in a hidden fashion without your knowledge. This squaring would mask risks in money market mutual funds. The astounding thing with Fidelity was their lack of response to a certified letter to clarify risk levels in my interests and their lack of response. This backhanded article is saying that clients of money market mutuals are balking; but it really should be refocused to tell the truth about investor the current management of funds in black box (private balance sheet) brokerage and money market mutual companies. Reuters misinformation piece – http://www.reuters.com/article/2012/02/07/us-fidelity-funds-idUSTRE81613T20120207
January Zero Hedge http://www.zerohedge.com/article/suspending-money-market-redemptions-now-legel-sec-approves-new-money-market-regulation-4-1-v
More Content at http://inpoints.blogspot.com/ Part 1 or a larger conversation to follow; Warren Pollock and Karl Denninger (The Market-Ticker) – have a discussion which starts with Louis Freeh, MF Global, Vanishing Money, the Safety (or lack of) rega…