Thursday, October 09, 2008



Michael C. Ruppert

Their pledge that although they are not seeking an injunction they intend to sue Wells Fargo and Wachovia "on behalf of shareholders"means the shareholders are going to take the fall. If you thought today -- when short selling came back -- was bad...

Citigroup's demise may not happen tomorrow but here's a clue. I tried to acess this story at the Reuters news site one minute after it was published at 6:06 PM EDT. The story was getting so much traffic that it took me two minutes to get a download and another two minutes to save it. The sell orders, shorts and puts must be flying off the screens at breathtaking numbers. Make money on the way up; make money on the way down.

All spotlights are turning to Citigroup. The perception that it may fail is already out there like fresh blood in the water. How much time they have is unknown but I'm convinced they're going down.

Like I said, this will remove all traces of hope. A real, global capaitulation in the Dow 5000s is now possible. I don't know anymore whether it would be better in the five or six thousands. But if we don't get down there, the capitulation hasn't happened yet.

Look, if you haven't got the nerve or skill to talk about Rubicon orFTW, then at least just go out and tell people that there's a guy, backed up by many wonderful people including the magnificent Jenna Orkin, who is predicting things with scary accuracy. He's been doing it for years. Citigroup is easy, quick proof. Go back and look at when I predicted this. You will be helping people and the more we help, the sooner -- the better prepared we are to start building a new post-petroleum/post industrial economy.

Just send them to the blog. They can find FTW and Rubicon from there.



kiki said...

i found it interesting that the 'big 8' are in town tomorrow and the pres invited them to the wh saturday to discuss the financial 'situation' - announced on cnn right after the market dove and closed today

gbwilli said...

This can't be good news. "A Chinese military spokesman said relations with the United States are sure to suffer after Washington announced a big arms package for disputed Taiwan, warning high-level contacts could be frozen."

Chris XVX said...

Bush is giving his speech on the economy and it's one lie after another. Status Quo.

Los Doggies said...

I'd like to hear(read) a critique of this article and author in general: by Richard Cook.

He seems to write a lot of great articles but I'm not sure if he's hip to Peak Everything so I don't know what to think of his ideas. Also most economic articles make sense when I read them but once I think it through and try to talk it out, I end up realizing I have many questions and much to learn.

FTW admin said...

The following comment is from Lance Olsen, and is based on material from his soon to be completed book, Forests Fall on Banks.

Reagan-era deregulation of the banking industry opened the doors to war-like competition for market share in the lending industry, and the lenders who could offer the cheapest loans were poised to become kings as they wiped out their competitors. Acting outside the regulatory framework, and independently of the Federal Reserve and other central banks, the shadow banking system positioned itself for market dominance by driving interest rates to lows beyond anything central bankers including Greenspan could control.

The resulting boom in lending was the support base for the related booms in construction, and of course the logging required for construction.

Greenspan feared that boom, and tried to slow it with interest rate hikes before it created a bust. In its August 30, 1999 issue, when Greenspan had already raised interest rates and many were expecting him to do it again, Business Week reported that "Economists and market watchers are betting that higher interest rates will finally rein in the U.S. housing boom, which will go a long way in helping Greenspan slow down the economy. 'Until the housing market bends under the weight of higher interest rates, neither will the economy,' says Mark Zandi, an economist..."

But it couldn't work, and while we can likely make a case that Greenspan should have known it couldn't work because he knew that Wall Street was hard at work to get around the interest rate hikes by dumping lots of cheap (low interest) money into housing, it still seems to me that the more important take-home message is that Wall Street's unregulated war against the regulated sector was the fatal gene in the financial system, and that the backers of financial deregulation all but admitted it from the get-go, in boasting that deregulation would open the doors to competition.

But they didn't add that this was not the kind of competition that would end with more banks. Just the opposite. The competition here was the kind that would leave but a few still standing. And that's the kind of competition that will be handing us the intended, planned bank ailures we will be seeing as this crisis moves on down the road ahead. To the horror of the right, who backed this trend from the start, bailouts signify a huge defeat of their centralized-finance dreams.

End of rant.

FTW admin said...

from Diane:

the word on the street of dreams is 7500 near term
whether or not the Value is 5000

This is a confidence game.
literally: "confidence"
at 7500 we will have lost 50%+ year over year
even today, the selling is lightening up because the consensus is that the end is near

Here is a GOOD GAGE:
from a great article on days ago explaining that the
"US has total debt of $51 TRILLION with a GDP of $14.3 TRILLION.
or 356% of GDP!
In 1929, it was 290% of GDP"

Panic will abate after the big cough up today and next week the banks will be nationalized so that "fix" will be in... the 7500 figure prices in and includes the re-depression or whatever this is and, yes, you and I may not live long enough to see go-go, agian ... however, people are still driving to work and turning on lights and computers.. the joe sixpack economy is still alive and when the folks on Any Street realize that they can still have a turkey for dinner on 25NOV the eerie winter and calm will settle in.

Hedge funds are sitting on cash and waiting...

Buffet did what the Whitneys and the Morgans did in the 1930's he stepped in with self interest in mind. He did not chose the BOTTOM of GE or GS -that would make his move have less impact but he has put in a floor under those behemoths GE is massively exposed to real estate -- Once they fix all the mortgages for those who can carry them then that will quiet that sector and get them back into home depot...

But for those of us who hold no equity it's gonna be tought social services and probably riots in the street.

Finally with all this G7 manuvering the mkt will hold above 5000 even 6000

I would bet the farm on that.

ps I became a series 7 trader during the 1970's gold rush cum hostage crisis, worked for Lehman, Shearson, S.G.Warburg, Hypovereinsbank, Merrill Econmetrics and so forth and currently edit wall street reports for an Indian firm.

Here's your IF....if Ahnold can get a loan for California from Bengladesh or Equador or Transylvania then the sky will not fall...however if California does not get secured...all bets are off and 5000 would be paradise.

NBPatton said...

Los Doggies,
I read that article by Richard Cook and wanted to give my 2 cents. For me it was like; bases loaded, bottom of the 9th, 2 strikes... needing 4 runs to win. Then the A-hole at bat hits about 8 possible home runs with everyone one just barely going foul every time only to be struck out and game over. FAIL.

"Similarly useless is the pumping in of credit or liquidity by Treasury or the Federal Reserve because it is no more than new debt to roll over old debt."
(Boom, head shot)

"The problem is not the collapse of the stock market which simply reflects the deflation of the bubble economy. The problem is the oncoming recession/depression caused by the absence of an economic engine to generate new producing power."
(Good insight, he is absolutely right)

"An entirely new paradigm is needed."
(this is where the crowd ooo's at the high hit down the left baseline right before it goes foul)

"Banks will lend locally at zero-percent interest"

"Non-taxable vouchers should be issued"
(My Take: Right idea! They used to called them Treasury Notes,... i.e. Colonial Scrip, Greenbacks, talley sticks, yak shit, whatever! As long as the people agree to use it and its not debt based.)

"This [New Paradigm] can be provided through dividend-based economics like the Alaska Permanent Fund, the 2008 tax rebate stimulus, and the basic income guarantee (negative income tax) discussed during the 1960s and 1970s."
(My take: Close but no cigar, all that is needed is for the Treasury to withdraw its capital from the Fed and issue its own debt free treasury notes backed by only the good faith of the citizens of our country and its governments ability to facilitate economic stability, easy as that... By the way that will probably result in the death of every politician involved AND their families AND possibly world war on America, unless other populations wake up and fight the bank)

"The banks may create loans at a 1:10 reserve ratio"
(My Take: EPIC FAIL!! The entire fractional reserve lending system is the tool of all this evil, fail fail fail!! The next step after treasury issuance of money is outlawing this practice first by an executive order and then follow it up with a constitutional amendment)

Just my 2 seashells.

Corwin said...

Look, if you haven't got the nerve or skill to talk about Rubicon orFTW, then at least just go out and tell people that there's a guy, backed up by many wonderful people including the magnificent Jenna Orkin, who is predicting things with scary accuracy. He's been doing it for years. Citigroup is easy, quick proof. Go back and look at when I predicted this. You will be helping people and the more we help, the sooner -- the better prepared we are to start building a new post-petroleum/post industrial economy.

Just send them to the blog. They can find FTW and Rubicon from there.


Thanks MCR
for your advice. Sorry If I sounded so negative earlier. I just wanted folks to know. I guess I wanted to ask for those that were not sure. I don't mind sounding crazy, I know the truth, my wife knows, and so does my daughter. Hang in there MCR, your in our prayers.

Like I said, I know the truth, go here to find out yourself.

Peak Oil (slash) New World Order

Is Real!!! SPEAK OUT!!!

NBPatton said...

"Revealing the future through bible prophecy."
Religion is just another MAN made institution used for controlling other men, its evil is that it bases itself in real spirituality and corrupts it with human motives.
Using the Bible to explain NWO and peak oil is like using debt to pay for debt. Its pointless and makes you look silly.

(This is coming from a born and raised Roman Catholic with 10 years of Catholic and 2 years of Lutheran schooling. And I am a very spiritual person!)

ES355GIBSON said...

MCR - is back on the attack!

***THAT IS GOOD NEWS*** actually GREAT news!

We need Mike the White House and jump the top rope to bushy! lol

So Glad Mike is back!

Stacy Brittain said...

Dear Mike Ruppert,

I tried to find a way to reach you on the ftw site but failed to find it so I'll just leave my post here...

I am new to all this...I'm 2/3 the way through Rubicon right now. My brother introduced me to it and to FTW. I've been alternately outraged and crying as I read this book. I've been talking with my close friends about it and many of them do not want to hear it. No surprise...many walls of denial have to come down to look at this information.

Today, all I wanted to do was say THANK YOU to you for your courage and tenacity to persevere in your work. I have been most blessed and I'm sure many others are as well.

I will post more again later. Please hang in there. The world needs your knowledge and courage and voice.

Please accept my grateful thanks for your work.

Stacy Brittain

Michiel said...

Does anyone here know about freely downloadable 'sustainablitity'/'live after the crash' books or documents?

Would someone be interested in a Wiki of this sort?

I leave you with a quote form the late Alan Watts I digged up:

"No work or love will flourish out of guilt, fear, or hollowness of heart, just as no valid plans for the future can be made by those who have no capacity for living now."
~Alan Watts

cornsilk said...

I have to admit I don't swallow every word of F. William Engdahl since he recanted on Peak Oil.

However, he poses an interesting thesis here:

The main gist proposes using Citi, Goldman Sachs, and JP Morgan Chase as a financial trifecta against European banks.

Engdahl makes a case that this current crisis in the US and panic among the banks is a well-executed plan that was hatched by Josh Bolten some time ago.

The plan is to re-shape the face of global banking with the trifecta dominating the financial world. Paulson is the point man, carefully selected.

This technique was apparently used in the Panic of 1835 with great success. If this is true, Citi may have a more secure horizon than appears at the moment.

Check it out. It's worth a look.

cornsilk said...

Jim Willie, whose site is "The Golden Jackass," is a Statistician by profession.

In this audio recorded in Toronto, Jim tells of something in the ether: the Europeans, Russia, China, and the Arabs are having talks about forming a new global currency based on a basket tethered to gold.

The Dollar and the Pound are not invited. There will be a gold-backed ruble and a gold-backed Gulf dinar. The Euro could possibly split in two, a gold-backed Euro and a Latin (Western-sympathetic) Euro which will be carved off as "trash."

It's not a long audio, well worth a listen. It deals with the question of "How will the US pay for oil?"

Marty said...

OK, so now that Citi is going to get a chunk of the $250B that Paulson is throwing around to get banks moving again,
what's your take on their viability now?